Document:

Exhibit 10.3

   

ADMINISTRATIVE SERVICES AGREEMENT

 

by and among

 

Bluerock Real Estate, L.L.C.,

 

Bluerock Real Estate Holdings, LLC,

 

Bluerock Residential Growth REIT, Inc.,

 

Bluerock Residential Holdings, L.P.,

 

Bluerock TRS Holdings, LLC,

 

and

 

Bluerock REIT Operator, LLC

 

Dated as of October 31, 2017

 

    	 	 	 

     

    

 

Administrative
SERVICES AGREEMENT

 

This ADMINISTRATIVE
SERVICES AGREEMENT (this “Agreement”), dated as of October 31, 2017 (the “Effective Date”),
is by and among Bluerock Real Estate, L.L.C., a Delaware limited liability company (“Bluerock Real Estate”),
and Bluerock Real Estate Holdings, LLC, a Delaware limited liability company (“Bluerock Holdings” and, together
with Bluerock Real Estate, the “Bluerock Entities” and each a “Bluerock Entity”), on the
one hand, and Bluerock Residential Growth REIT, Inc., a Maryland corporation (the “REIT”), Bluerock Residential
Holdings, L.P., a Delaware limited partnership (the “OP”), Bluerock TRS Holdings, LLC, a Delaware limited liability
company (the “TRS”), and Bluerock REIT Operator, LLC, a Delaware limited liability company (the “Manager”
and, together with the REIT, the OP and the TRS, the “Company” and each a “Company Party”),
on the other hand. The Bluerock Entities and the Company shall be collectively referred to herein as the “Parties,”
and each individually a “Party”.

 

WHEREAS, the REIT, the
OP, the TRS, BRG Manager, LLC, the Manager, Bluerock Real Estate, The Kachadurian Group, LLC, Konig & Associates, LLC, Jenco
Business Advisors, Inc., James G. Babb, III, Jordan B. Ruddy, and Ryan S. MacDonald have entered into that certain Contribution
and Sale Agreement (the “Contribution Agreement”), dated as of August 3, 2017;

 

WHEREAS, following the
closing of the transactions contemplated by the Contribution Agreement, the Company desires to obtain certain services, on an at-cost
basis, from the Bluerock Entities for the purpose of enabling the Company to manage its operations and retain the benefit of operational
efficiencies created by access to such services to assure a smooth transition following the closing of the transactions contemplated
by the Contribution Agreement by availing the Company time to develop such services in-house or to hire other third-party service
providers for such services.

 

NOW THEREFORE, for good
and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Parties agree as follows:

 

ARTICLE
I

DEFINITIONS

 

Section 1.1.          Definitions.
Capitalized terms used in this Agreement but not otherwise defined herein shall have the meanings ascribed thereto in the Contribution
Agreement.

 

ARTICLE
II

SERVICES

 

Section 2.1.          Scheduled
Services.

 

(a)          Upon
the terms and subject to the conditions set forth in this Agreement, the Bluerock Entities agree to provide, or to cause one or
more of their Affiliates or one or more third parties to provide, to the Company all services set forth on Schedule A (the
“Services”).

 

    	 	 	 

     

    

 

(b)          Anything
to the contrary notwithstanding, none of the obligations of the Parties under the Contribution Agreement shall constitute Services
under this Agreement.

 

Section 2.2.          Additional
Services. Each Bluerock Entity agrees that, if any Company Party identifies during the Term, services that such Company Party
believes are necessary for the continued operation of its business that are not identified on Schedule A, upon the reasonable request
of such Company Party, the Parties shall cooperate in good faith to modify Schedule A with respect to such additional services,
upon terms (including reimbursement) and subject to conditions to be agreed upon in good faith by the Parties. No Party shall be
obligated to perform or cause to be performed any such additional services unless and until the Parties agree in writing as to
the price, specifications and other terms and conditions under which the applicable Party shall provide (or cause to be provided)
such other services; provided, that upon the agreement of the Parties with respect to any such additional services, such
additional services shall thereafter be deemed “Services” within the meaning of this Agreement and the provision of
such services will be subject to the terms of this Agreement.

 

Section 2.3.          Service
Standards; Level of Service. The Bluerock Entities shall provide the Services to the Company in a prompt, professional and
workmanlike manner, and shall provide the Services to the Company at a level of quality, responsiveness and diligence at least
equal to the levels provided by such Party over the twelve (12) month period prior to the closing of the transactions contemplated
by the Contribution Agreement, if applicable, but in any event at a level of quality provided by such Party to its own business
(the “Service Standards”). In no event shall the Bluerock Entities have an obligation to perform any Service
in any other manner, amount or quality unless expressly so specified in Schedule A with respect to a particular Service
or mutually agreed upon after good faith discussions by the Parties. The Bluerock Entities shall promptly notify the Company of
any event or circumstance of which the Bluerock Entities have knowledge that causes, or would be reasonably likely to cause, a
material disruption in the Services.

 

Section 2.4.          Disclaimer
of Warranties. EXCEPT AS OTHERWISE PROVIDED HEREIN, EACH PARTY EXPRESSLY DISCLAIMS ANY AND ALL REPRESENTATIONS OR WARRANTIES,
AT LAW OR IN EQUITY, WITH RESPECT TO THE SERVICES TO BE PROVIDED UNDER THIS AGREEMENT, INCLUDING WARRANTIES OF MERCHANTABILITY,
FITNESS FOR ANY PARTICULAR PURPOSE, TITLE, NON-INFRINGEMENT AND QUIET ENJOYMENT. NO ORAL OR WRITTEN INFORMATION OR ADVICE GIVEN
BY ANY PARTY OR ITS AUTHORIZED REPRESENTATIVES SHALL CREATE A WARRANTY OR IN ANY WAY INCREASE THE SCOPE OF THE OTHER PARTIES’
OBLIGATIONS UNDER THIS AGREEMENT. 

 

Section 2.5.          Subcontracting.
A Bluerock Entity may, with the written consent of the Company (which shall not be unreasonably withheld, conditioned or delayed),
engage, or cause one of its Affiliates to engage, one or more parties (including third parties and/or Affiliates of such Bluerock
Entity) to provide some or all of the applicable Services to be provided by such Bluerock Entity. In the event a Bluerock Entity
or its Affiliates so engage any such parties, such Bluerock Entity shall remain responsible for ensuring adherence to the Service
Standards in the performance of the applicable Services, compliance by such parties with the applicable terms of this Agreement
and for the indemnification obligations set forth in Article VIII. The Parties hereby agree that the delivery of any written consent
pursuant to this Section 2.5 shall not be subject to the notice requirements set forth in Section 11.3 and any such written consent
may be delivered via electronic mail.

 

    	 	 	 

     

    

 

Section 2.6.          Employee
Compensation. The Bluerock Entities shall be solely responsible for the payment of all employee benefits and any other direct
and indirect compensation for the employees of the Bluerock Entities (or their Affiliates’ or permitted subcontractors pursuant
to Section 2.5) assigned to perform the Services, as well as such employees’ worker’s compensation insurance, employment
taxes, and other applicable employer liabilities relating to such employees as required by law.

 

Section 2.7.          Cybersecurity.

 

(a)          The
Bluerock Entities and the Company Parties will maintain or cause to be maintained reasonable security measures with respect to
any interfaces required between the Bluerock Entities and the Company Parties in connection with the Services in a manner generally
consistent with the historical provision of the Services and with the same standard of care as historically provided. At all times
during the Term, neither the Bluerock Entities nor the Company Parties will intentionally or knowingly introduce, and each will
take commercially reasonable measures to prevent the introduction of, into the Bluerock Entities’ or the Company Parties’
computer systems, databases, or software any viruses or any other contaminants (including, but not limited to, codes, commands,
instructions, devices, techniques, bugs, web bugs, or design flaws) that may be used to access (without authorization), alter,
delete, threaten, infect, assault, vandalize, defraud, disrupt, damage, disable, inhibit, or shut down another Party's computer
systems, databases, software, or other information or property. Except as may be required in connection with the provision of the
Services, neither the Bluerock Entities nor the Company Parties will intentionally or knowingly tamper with, compromise, or attempt
to circumvent any physical or electronic security or audit measures employed by the other in the course of its business operations,
and/or intentionally or knowingly compromise the security of the other’s computer systems and/or networks.

 

(b)          Each
of the Bluerock Entities and the Company Parties shall reasonably cooperate with the other and shall cause their respective Affiliates
to reasonably cooperate (i) in notifying the other of any Security Breach affecting a Bluerock Entity or a Company Party and (ii)
in any investigation and mitigation efforts relating to such Security Breaches, in each case, in such Party’s reasonable
discretion and subject to applicable Law. As used herein, “Security Breach” means unauthorized access to or disclosure
of computerized data that compromises the security, confidentiality or integrity of any Confidential Information (as defined below)
maintained by a Party.

 

Section 2.8.          Cooperation.

 

(a)          Each
Company Party will share information and otherwise cooperate to the extent necessary to facilitate the provision of the Services
pursuant to this Agreement. Each Company Party will cooperate in a commercially reasonable manner to facilitate the provision of
Services as described herein and to make available to the Bluerock Entities properly authorized personnel for the purpose of consultation
and decision.

 

    	 	 	 

     

    

 

(b)          Each
Company Party shall follow the policies, procedures and practices of the Bluerock Entities and their Affiliates applicable to the
Services that are in effect as of the Effective Date, as may be modified from time to time, so long as the Company has been provided
with notice (in writing, where available) of such policies, procedures and practices.

 

(c)          A
failure of any Company Party to act in accordance with this Section 2.8 that prevents either Bluerock Entity or its Affiliates
or third parties, as applicable, from providing a Service hereunder shall relieve such Bluerock Entity of its obligation to provide
such Service until such time as the failure has been cured; provided, that such Company Party has been notified promptly
in writing of such failure.

 

Section 2.9.          Certain
Changes. Either Bluerock Entity may change (a) its policies and procedures, (b) any Affiliates and/or third parties that provide
any Services or (c) the location from which any Service is provided at any time; provided that each Bluerock Entity shall
remain responsible for the performance of the applicable Services in accordance with this Agreement. Each Bluerock Entity shall
provide the applicable Company Party with prompt written notice of any changes described in the prior sentence. Any such notice
shall be provided to the applicable Company Party as soon as reasonably practicable prior to the effectiveness of such change or,
if prior notice of such change is not practicable, as soon as reasonably practicable after the effectiveness of such change.

 

ARTICLE
III

LIMITATIONS

 

Section 3.1.          General
Limitations.

 

(a)          In
no event shall either Bluerock Entity, pursuant to this Agreement, be obligated to maintain the employment of any specific employee
or acquire any specific additional equipment or software, unless the applicable Company Party agrees to bear its allocated portion
of any associated costs; provided that each Bluerock Entity shall remain responsible for the performance of the applicable
Services in accordance with this Agreement.

 

(b)          Neither
Bluerock Entity shall be obligated to provide, or cause to be provided, any Service to the extent that the provision of such Service
would require such Bluerock Entity, any of its Affiliates or any of their respective officers, directors, managers, members, employees,
agents or representatives to violate any applicable Laws.

 

Section 3.2.          Third
Party Consents and Limitations.

 

(a)          Prior
to the Effective Date, each Bluerock Entity will have obtained, with the reasonably requested cooperation of the Company, any third
party consents necessary for provision of the applicable Services during the Term. The costs associated with obtaining any third
party consents shall be borne by the Company Party receiving the applicable Service.

 

    	 	 	 

     

    

 

(b)          Each
Company Party acknowledges and agrees that any Services provided through third parties or using third party Intellectual Property
are subject to the terms and conditions of any applicable agreements between the applicable Bluerock Entity or its Affiliate and
such third parties, copies of which have been, or will be, as applicable, made available to the applicable Company Party.

 

Section 3.3.          Force
Majeure. In the event that either Bluerock Entity is wholly or partially prevented from, or delayed in, providing one or more
Services, or one or more Services are interrupted or suspended, by reason of events beyond its reasonable control (including acts
of God, acts, orders, restrictions or interventions of any civil, military or government authority, fire, explosion, accident,
floods, earthquakes, embargoes, epidemics, war (declared or undeclared), acts of terrorism, hostilities, invasions, revolutions,
rebellions, insurrections, sabotages, nuclear disaster, labor strikes, civil unrest, riots, power or other utility failures, disruptions
or other failures in internet or other telecommunications lines, networks and backbones, delay in transportation, loss or destruction
of property and/or changes in Laws) (each, a “Force Majeure Event”), provided that such Bluerock Entity is taking
commercially reasonable steps to minimize the impact and duration of such Force Majeure Event, such Bluerock Entity shall not be
obligated to deliver the affected Services during such period, and the applicable Company Party shall not be obligated to pay for
any Services not delivered.

 

ARTICLE
IV

PAYMENT

 

Section 4.1.          Billing
and Payment Terms. Each Bluerock Entity shall invoice the Company Parties, as applicable, for the amount necessary to reimburse
such Bluerock Entity for all its costs incurred in performing the Services on a quarterly basis, in arrears, and the applicable
Company Party shall remit full payment, in immediately available funds, within thirty (30) days after receipt of such invoice (each
a “Quarterly Reimbursement”). In the event that a Company Party has repeated late payments which remain uncured
after an additional fifteen (15) day period, Bluerock Holdings reserves the right to charge a late fee for each such payment equal
to two and one half percent (2.5%) of such late Quarterly Reimbursement. All amounts due to a Bluerock Entity pursuant to this
Article IV may be paid in cash or in the OP’s long-term incentive plan units (“LTIPs”), at the option of the
Board of Directors of the Company. If paid in LTIPs, the number of LTIPs to be issued shall be determined by dividing the amount
due by the volume weighted average price of a share of the REIT’s Class A Common Stock, as reported on the NYSE MKT (or then-applicable
Exchange), for the twenty (20) trading days immediately preceding the due date of such payment. Any such LTIPs issued shall be
fully vested upon issuance.

 

Section 4.2.          Determination
of Costs.

 

(a)          The
Parties agree that allocation reviews with respect to determining the costs of providing the Services shall be performed as frequently
as necessary, but at least annually (each such review, an “Allocation Review”), according to procedures to be
mutually agreed upon by the Parties. The results of the Allocation Review will be applied on a forward-looking basis, subject to
periodic adjustment pursuant to Section 4.2(b), to the determination of costs of providing the Services hereunder.

 

    	 	 	 

     

    

 

(b)          The
Parties will reasonably cooperate to make adjustments to previously determined allocations if material and they will be reflected
in the next Quarterly Reimbursement.

 

Section 4.3.          Record
Keeping and Audit Right.

 

(a)          Each
Bluerock Entity shall keep, and, as applicable, cause its Affiliates to keep, complete and accurate books and records relating
to the costs charged to Company hereunder, including the basis for calculating such costs (the “Transition Books and Records”)
for a period of one (1) year following the termination of this Agreement (“Audit Period”).

 

(b)          During
the Term and the Audit Period, each Company Party, at its own cost and expense, shall have the right to inspect the Transition
Books and Records of the Bluerock Entities (upon reasonable, prior written notice, during normal business hours), solely for the
purposes of verifying the accuracy of the invoices provided to such Company Party hereunder. Each Company Party may only exercise
the foregoing inspection right once during any calendar quarter, except in the event that such Company Party reasonably believes
there is a material discrepancy in the invoices that it has been provided.

 

(c)          In
the event the audit produces a material discrepancy between the fees and expenses invoiced to a Company Party and the actual Services
performed by the applicable Bluerock Entity, the Company Party receiving the applicable Services shall promptly notify the applicable
Bluerock Entity of such difference and indicate the amount by which it believes the fees and expenses invoiced exceed the Services
performed. Within twenty (20) business days of receipt of notice of a discrepancy from the Company Party receiving the applicable
Services, the applicable Bluerock Entity shall (i) reimburse such Company Party for the amount of the discrepancy arising out of
the audit or (ii) notify such Company Party that it disputes the results of the audit. If a Bluerock Entity notifies the Company
Party receiving Services of a dispute, such dispute shall be resolved in accordance with the procedures set forth in Article X
hereof. Any Transition Books and Records that relate to any dispute under this Section 4.3 shall continue to be kept by the applicable
Bluerock Entity until a complete and final resolution has been reached by the applicable Parties.

 

(d)          The
expenses of the audit inspection shall be paid by the Company Party receiving the applicable Services; provided, however,
that if the results of such audit, as finally determined pursuant to Section 4.3(c), reveal that the applicable Bluerock Entity
has inaccurately calculated the fees and expenses resulting in an overcharge of such fees and expenses for any Quarterly Reimbursement
by more than the greater of (i) $25,000 in the aggregate or (ii) five percent (5%) of the actual fees and expenses for the Services
provided herein, the expenses of the audit inspection shall be paid by the applicable Bluerock Entity providing the applicable
Services.

 

    	 	 	 

     

    

 

(e)          Anything
to the contrary notwithstanding, each Bluerock Entity shall, and shall cause its Affiliates to, keep books and records relating
to the performance of Services hereunder (the “Service Records”) consistent with its document and information
retention policies in effect as of the closing of the transactions contemplated by the Contribution Agreement. During any Term
and the Audit Period, each Company Party shall have the right, at its own cost and expense, to inspect the Service Records of the
Bluerock Entities (upon reasonable, prior written notice and during normal business hours), for the purpose of confirming that
the applicable Services are being performed in accordance with the Service Standards, or to address any error in the product of
any Services. Each Company Party may only exercise the foregoing inspection right once during any calendar quarter, except to address
any matter that such Company Party reasonably believes represents material non-compliance by applicable Bluerock Entity or its
Affiliates with any Service Standards or any material error in the provision of any Services.

 

Section 4.4.          Sales
Taxes. All consideration under this Agreement is exclusive of any sales, transfer, value-added, goods or services tax or similar
gross receipts based tax (excluding all other taxes including taxes based upon or calculated by reference to income, receipts or
capital) imposed against or on the Services (“Sales Taxes”). The Company Party receiving Services shall be responsible
for, and shall indemnify and hold the applicable Bluerock Entity harmless from and against, any such Sales Taxes.

 

ARTICLE
V

CONFIDENTIALITY

 

Section 5.1.          Confidentiality.

 

(a)          Each
Party may receive (or otherwise have access to) Confidential Information of the other Parties (both orally and in writing) in connection
with the provision of the Services. “Confidential Information” means any information, whether or not designated or
containing any marking such as “Confidential,” “Proprietary,” or some similar designation, related to any
Party and its services, properties, business, assets and financial condition relating to the business, finances, technology or
operations of such Party or its Affiliates. Such information may include financial, technical, legal, marketing, network, and/or
other business information, reports, records, or data (including, but not limited to, computer programs, code, systems, applications,
analyses, passwords, procedures, output, information regarding software, sales data, vendor lists, customer lists, and employee-
or customer-related information, personally identifiable information, business strategies, advertising and promotional plans, creative
concepts, specifications, designs, and/or other material). Each Party agrees to treat all Confidential Information provided by
the other Parties, or which such Party otherwise has access to, pursuant to this Agreement as proprietary and confidential to the
other Parties, as applicable, and to hold such Confidential Information in confidence. No Party shall (without the prior written
consent of the applicable other Party) disclose or permit disclosure of such Confidential Information to any third party; provided,
that any Party may disclose such Confidential Information to any permitted third party subcontractors and its Affiliates’
current employees, officers, or directors, or legal or financial representatives, in each case, who have a legitimate need to know
such Confidential Information for the purpose of facilitating the provision of the Services and who have previously agreed in writing
(including as a condition of their employment, contract or agency) to be bound by terms respecting the protection of such Confidential
Information which are no less protective as the terms of this Agreement. Each Party agrees to safeguard all Confidential Information
of the other Parties with at least the same degree of care as such Party uses to protect its own Confidential Information, but
in no event shall such degree of care be less than a reasonable degree of care. Each Party shall only use the other Party’s
Confidential Information solely for the purpose of fulfilling its obligations under this Agreement and facilitating the provision
of the Services. Such Party shall not, and shall cause its Affiliates and permitted third party subcontractors not to, at any time,
collect, use, sell, license, transfer, make available or disclose any other Party’s Confidential Information for its own
benefit, the benefit of its Affiliates (or agents, subcontractors or representatives) or for the benefit of others. Each Party
will be responsible for any violation of the confidentiality provisions of this Section 5.1(a) by any person or entity to whom
it has disclosed Confidential Information, its subcontractors and its Affiliates’ employees, officers and directors, and
legal or financial representatives. Notwithstanding the foregoing, this Section 5.1(a) shall not apply to any information
that a Party can demonstrate (a) was, at the time of disclosure to it, in the public domain through no fault of such Party,
(b) was received after disclosure to it from a third party who had a lawful right to disclose such information to it, or (c) was
independently developed by the receiving Party.

 

    	 	 	 

     

    

 

(b)          All
Confidential Information transmitted or disclosed hereunder will be and remain the property of the Party to which such Confidential
Information applies, and each Party shall promptly (at the applicable Party’s sole election) destroy or return to such Party
all copies thereof upon termination or expiration of this Agreement, or upon the written request of such Party; provided, that
no Party shall be required to destroy any Confidential Information that is stored solely as a result of a backup created in the
ordinary course of business and is not readily destroyable or that is stored on the computers of the personnel of such Party and/or
its Affiliates and subject to deletion in accordance with such Party’s and/or its Affiliates’ electronic information
management practices (subject to extended retention by such Party’s or its Affiliates’ compliance and legal department
personnel in accordance with any applicable existing document retention/destruction policy). Upon the request of the applicable
Party, the other Parties shall provide notice of any such applicable destruction in writing.

 

ARTICLE
VI

INTELLECTUAL PROPERTY

 

Section 6.1.          Ownership
of Intellectual Property.

 

(a)          Each
Party acknowledges and agrees that the Parties shall each retain exclusive rights to and ownership of its Intellectual Property,
and no license or other right, express or implied, is granted hereunder by any Party to its Intellectual Property.

 

(b)          As
between the Bluerock Entities and the Company, each of the Bluerock Entities shall exclusively own all right, title and interest
throughout the world in and to all business processes and other Intellectual Property rights created by it in connection with the
performance of the Services (“Bluerock Intellectual Property”), and each Company Party hereby assigns any and
all right, title or interest it may have in any such Bluerock Intellectual Property to the applicable Bluerock Entity. Each Company
Party shall execute any documents and take any other actions reasonably requested by the applicable Bluerock Entity to effectuate
the purposes of the preceding sentence. Each Bluerock Entity hereby grants to the Company a royalty-free, fully paid-up, non-exclusive
license to use the Bluerock Intellectual Property during the Term, solely to the extent necessary for the Company to receive the
benefit of the Services.

 

    	 	 	 

     

    

 

ARTICLE
VII

LIMITATION OF LIABILITY

 

Section 7.1.          Limitation
of Liability. In no event shall any Party be liable under or in connection with this Agreement for consequential, incidental,
special, indirect, treble or punitive Losses, Losses based on either the reduced current or future profitability or earnings or
Losses based on a multiple of such profitability, earnings or other factor, or reduction therein (it being understood that all
Losses shall for purposes of this Article VII be determined and calculated on a direct, dollar-for-dollar basis), except in the
case of liabilities arising from third-party claims. Other than in the case of Losses arising out of or resulting from fraud, intentional
misrepresentation or willful misconduct, the liability of any Party to the other Parties hereunder shall not exceed the aggregate
amounts actually due and payable pursuant to Article IV and Section 11.1, as applicable, hereunder from the Effective Date through
the date the claim accrued.

 

ARTICLE
VIII

INDEMNIFICATION

 

Section 8.1.          Bluerock
Real Estate’s Indemnification of the Company. Subject to the terms of this Article VIII, Bluerock Real Estate agrees
from and after the Effective Date to indemnify, defend and hold harmless the Company from and against any and all Losses arising
out of, resulting from or relating to third-party claims arising out of a material breach by Bluerock Real Estate of any provision
of this Agreement

 

Section 8.2.          Bluerock
Holdings’s Indemnification of the Company. Subject to the terms of this Article VIII, Bluerock Holdings agrees from and
after the Effective Date to indemnify, defend and hold harmless the Company from and against any and all Losses arising out of,
resulting from or relating to third-party claims arising out of a material breach by Bluerock Holdings of any provision of this
Agreement.

 

Section 8.3.          Indemnification
of the Bluerock Entities. Subject to the terms of this Article VIII, the Company agrees from and after the Effective Date to
indemnify, defend and hold harmless each of the Bluerock Entities from and against any and all Losses arising out of, resulting
from or relating to third party claims arising out of a material breach by the Company of any provision of this Agreement.

 

Section 8.4.          Indemnification
Procedures. In the event either Bluerock Entity or the Company shall have a claim for indemnity against the other applicable
Party, the applicable Parties shall follow the procedures set forth in Section 5.05 of the Contribution Agreement.

 

ARTICLE
IX

TERM AND TERMINATION

 

Section 9.1.          Term
of Agreement. This Agreement shall become effective on the Effective Date and shall continue in operation, unless earlier terminated
as provided in this Article IX, until the first anniversary of the Effective Date (the “Initial Term”). The
Company may renew this Agreement for successive one-year terms by providing the Bluerock Entities written notice of its intention
to renew this Agreement no later than sixty (60) days prior to the expiration of the Initial Term or any successive term (each
a “Renewal Term”; the Initial Term and any Renewal Term are sometimes referred to as the “Term”),
as applicable.

 

    	 	 	 

     

    

 

Section 9.2.          Termination.

 

(a)          Partial
Termination. Any Company Party may, on written notice to the applicable Bluerock Entity, terminate any Service due to it and
thereafter such terminated Service shall be deemed deleted from Schedule A. Any termination notice delivered by a Company
Party shall identify the specific Service or Services to be terminated, and the effective date of such termination, which must
be a date at least ninety (90) days from the date such termination notice is received. For any terminated Services which required
the software or other services of a third party (i) if the Bluerock Entity providing such Services paid for such software or services
in advance, such Bluerock Entity may invoice the applicable Company Party any portion of such advance payments allocable on a reasonable
basis to the Company Party receiving such Services, and (ii) if, as a result of such termination, the Bluerock Entity providing
such Services terminates all or part of its agreement with the third party, such Bluerock Entity may invoice the Company Party
receiving such Services for any applicable termination fees allocable on a reasonable basis to such Company Party. Neither Bluerock
Entity shall enter into any new agreements with third parties for software or services that include any termination fees that would
be charged to a Company Party without such Company Party’s prior written consent, which consent shall not be unreasonably
withheld.

 

(b)          Automatic
Termination. This Agreement shall automatically terminate upon termination by the Company of all Services or upon the expiration
of the Term.

 

(c)          Termination
for Change of Control. Either Bluerock Entity may terminate this Agreement at any time upon the occurrence of a “Change
of Control Event” by providing the Company no less than one hundred eighty (180) days prior written notice of its intention
to terminate this Agreement. As used herein, a “Change of Control Event” means (i) R. Ramin Kamfar ceasing to
be a director of the REIT for any reason, (ii) the sale of all or substantially all of the assets of the REIT or the OP, or (iii)
a merger, consolidation, recapitalization or reorganization of the REIT, unless securities representing more than fifty percent
(50%) of the total voting power after such merger, consolidation, recapitalization or reorganization are beneficially owned, directly
or indirectly, by the Persons who beneficially owned the REIT’s outstanding voting securities immediately prior to such transaction.

 

(d)          Termination
for Default. In the event: (i) any Company Party shall fail to pay for any or all Services in accordance with the terms of
this Agreement; (ii) of any default by either Bluerock Entity, in any material respect, in the due performance or observance by
it of any of the other terms, covenants or agreements contained in this Agreement; or (iii) any Party shall become or be adjudicated
insolvent and/or bankrupt, or a receiver or trustee shall be appointed for any Party or its property or a petition for reorganization
or arrangement under any bankruptcy or insolvency Law shall be approved, or any Party shall file a voluntary petition in bankruptcy
or shall consent to the appointment of a receiver or trustee (in each such case, the “Defaulting Party”); then
the non-Defaulting Party shall have the right, at its sole discretion, (A) in the case of a default under clause (iii), to terminate
immediately the applicable Service(s) and/or this Agreement and its participation with the Defaulting Party under this Agreement;
and (B) in the case of a default under clause (i) or (ii), to terminate the applicable Service(s) and/or this Agreement and its
participation with the Defaulting Party under this Agreement if the Defaulting Party has failed to (x) cure the default within
thirty (30) days after receiving written notice of such default, or (y) take substantial steps towards and diligently pursue the
curing of the default.

 

    	 	 	 

     

    

 

Section 9.3.          Effect
of Termination. In the event that this Agreement or a Service is terminated:

 

(a)          Each
Company Party agrees and acknowledges that the obligation of the Bluerock Entities to provide the terminated Services, or to cause
the terminated Services to be provided, hereunder shall immediately cease. Upon cessation of a Bluerock Entity’s obligation
to provide any Service, the Company Parties, as applicable, shall stop using, directly or indirectly, such Service.

 

(b)          Upon
request, each Company Party shall return to the Bluerock Entities all tangible personal property and books, records or files owned
by the Bluerock Entities and used in connection with the provision of Services that are in its possession as of the termination
date.

 

(c)          In
the event that this Agreement is terminated, the following matters shall survive the termination of this Agreement: (i) the rights
and obligations of each Party under Articles V, VI, VII, VIII, this Section 9.3, Article X and Article XI and (ii) the obligations
under Article IV of the Company to pay the applicable fees for Services furnished prior to the effective date of termination.

 

ARTICLE
X

DISPUTE RESOLUTION

 

Section 10.1.          Party
Representatives. Each Party will appoint a representative (a “Service Representative”) responsible for coordinating
and managing the delivery and receipt of the Services, as applicable, which Service Representative will have authority to act on
such Party’s behalf with respect to matters relating to this Agreement. The Service Representatives will work in good faith
to address any issues involving the Parties’ relationship under this Agreement (including, without limitation, any pricing
and other Service related matters).

 

Section 10.2.          Escalation
Procedure. The Parties shall attempt to resolve any dispute, controversy or claim arising out of, in connection with, or relating
to this Agreement, whether sounding in contract or tort and whether arising during or after termination of this Agreement (each,
a “Dispute”) in accordance with the following procedures: Upon the written request of any Party, a senior executive
officer of the Bluerock Entities or a designee of such person and a senior executive officer of the Company or that person’s
designee shall meet and attempt to resolve any Dispute between them. If such Dispute is not resolved by discussions between such
officers within ten (10) days after a Party’s written request was made, then any Party may commence a proceeding relating
to such Dispute in accordance with Section 11.10. No Party may commence a proceeding with respect to a Dispute unless and until
the foregoing procedure has been concluded with respect to the underlying Dispute.

 

    	 	 	 

     

    

 

ARTICLE
XI

MISCELLANEOUS

 

Section 11.1.          Services
Provided to the Bluerock Entities. The Parties agree that from time to time certain employees of the Company may provide, or
cause to be provided, services to the Bluerock Entities during the Term. Any such services provided by such employees of the Company
shall be provided to the Bluerock Entities at cost and such costs shall be allocated in a manner substantially similar to those
provided on Schedule A hereto. The provision of such services shall be subject to all of the same rights (including right
to payment that parallels a Quarterly Reimbursement), terms, covenants, conditions as the Services under, and indemnity, confidentiality,
record-keeping and all of the other provisions of, this Agreement, unless the applicable Parties agree otherwise in writing.

 

Section 11.2.          Non-Solicitation.
The Company Parties covenant that, until the later to occur of (i) the three-year anniversary of the Effective Date and (ii) the
one-year anniversary of the termination of this Agreement, the Company Parties shall not, and shall cause their Affiliates not
to, solicit the employment or engagement of services of any person who is, or was during the three-month period immediately prior
to such solicitation, employed as an employee, contractor or consultant by the Bluerock Entities or any of their subsidiaries during
such period on a full- or part-time basis. The foregoing shall not prohibit any general solicitation of employees, contractors
or consultants or public advertising of employment opportunities (including through the use of employment agencies) not specifically
directed at any such employees, contractors or consultants, nor shall it prohibit the Company Parties or their Affiliates from
hiring any such employee, contractor or consultant who seeks employment or engagement with the Company Parties or their on his
or her own initiative at any time after three months have elapsed since such individual served as an employee, contractor or consultant
otherwise subject to this restriction, without any prior solicitation by the Company Parties or any of their Affiliates. Furthermore,
the foregoing shall not prohibit the Company from hiring employees of the Bluerock Entities in connection with the transactions
contemplated by the Contribution Agreement.

 

Section 11.3.          Insurance.
The Bluerock Entities shall maintain, at their sole cost and expense, at all times during the Term (and for a period of time continuing
for no less than twenty-four (24) months following the Term), a professional liability insurance (errors and omissions) policy
with coverages and policy as then maintained by the Bluerock Entities and its Affiliates and with coverages of no less than $8,000,000.
The Company shall be a named as an “additional insured” under such policy. All insurance required to be carried by
the Bluerock Entities shall be written with companies having a policyholder and asset rate, as circulated by Best’s Insurance
Reports, of A-:VIII or better. On or prior to the date hereof and from time to time upon the Company’s request, the Bluerock
Entities shall provide certificates of insurance evidencing such coverage and such other documentation (including a copy of the
policy) as may be requested.

 

    	 	 	 

     

    

 

Section 11.4.          Notices.

 

(a)          All
notices, requests, claims, demands and other communications under this Agreement shall be in writing (including a writing delivered
by facsimile transmission) and shall be deemed given (i) when delivered, if sent by registered or certified mail (return receipt
requested); (ii) when delivered, if delivered personally or sent by facsimile (with proof of transmission); or (iii) on the Business
Day after deposit (with proof of deposit), if sent by overnight mail or overnight courier; in each case, unless otherwise specified
or provided in this Agreement, to the Parties at the following addresses (or at such other address or fax number for a Party as
will be specified by like notice):

 

As to the Company:

 

BRG Manager Sub, LLC

712 Fifth Avenue, 9th Floor

New York, New York 10019

Attention: R. Ramin Kamfar

Email: rkamfar@bluerockre.com

 

With a copy to:

 

Kaplan Voekler Cunningham & Frank, PLC

1401 E Cary Street

Richmond, Virginia 23219

Attention: Richard P. Cunningham, Jr.

Email: rcunningham@kv-legal.com

 

As to Bluerock Real Estate:

 

Bluerock Real Estate, L.L.C.

712 Fifth Avenue, 9th Floor

New York, New York 10019

Attention: Michael Konig

Email: mkonig@bluerockre.com

 

As to Bluerock Holdings:

 

Bluerock Real Estate Holdings, LLC

712 Fifth Avenue, 9th Floor

New York, New York 10019

Attention: Michael Konig

Email: mkonig@bluerockre.com

 

(b)          The
inability to deliver any notice, demand or request because the Party to whom it is properly addressed in accordance with this Section
11.3 refused delivery thereof or no longer can be located at that address shall constitute delivery thereof to such Party.

 

    	 	 	 

     

    

 

(c)          Each
Party shall have the right from time to time to designate by written notice to the other Parties hereto such other person or persons
and such other place or places as said Party may desire written notices to be delivered or sent in accordance herewith.

 

(d)          Notices
and consents signed and given by an attorney for a Party shall be effective and binding upon that Party.

 

Section 11.5.          Amendment.
Except as set forth in Sections 2.2 and 9.2(a) hereof, no provision of this Agreement or of any documents or instrument entered
into, given or made pursuant to this Agreement may be amended, changed, waived, discharged or terminated except by an instrument
in writing, signed by the Party against whom enforcement of the amendment, change, waiver, discharge or termination is sought.

 

Section 11.6.          Entire
Agreement. This Agreement (and all exhibits and schedules hereto) constitutes and contains the entire agreement and understanding
of the Parties with respect to the subject matter hereof and supersedes all prior negotiations, correspondence, understandings,
agreements and contracts, whether written or oral, among the Parties respecting the subject matter hereof. No representation, promise,
inducement or statement of intention has been made by any of the Parties which is not embodied in this Agreement, or in the attached
schedules or the written certificates or instruments of assignment or conveyance delivered pursuant to this Agreement, and none
of the Parties shall be bound by or liable for any alleged representations, promise, inducement or statement of intention not therein
so set forth.

 

Section 11.7.          No
Waiver. No failure of any Party to exercise any power given such Party hereunder or to insist upon strict compliance by the
other Parties with their obligations hereunder shall constitute a waiver of any Party’s right to demand strict compliance
with the terms of this Agreement.

 

Section 11.8.          Counterparts.
This Agreement, any document or instrument entered into, given or made pursuant to this Agreement or authorized hereby, and any
amendment or supplement thereto may be executed in two or more counterparts, and, when so executed, will have the same force and
effect as though all signatures appeared on a single document. Any signature page of this Agreement or of such an amendment, supplement,
document or instrument may be detached from any counterpart without impairing the legal effect of any signatures thereon, and may
be attached to another counterpart identical in form thereto but having attached to it one or more additional signature pages.
Any counterpart transmitted via email in format in portable document format (.pdf) shall be treated as originals for all purposes
as to the parties so transmitting.

 

Section 11.9.          Payments.
Except as otherwise provided herein, payment of all amounts required by the terms of this Agreement shall be made in the United
States of America and in immediately available funds of the United States of America which, at the time of payment, is accepted
for the payment of all public and private obligations and debts.

 

    	 	 	 

     

    

 

Section 11.10.         Successors
and Assigns. This Agreement shall be binding upon and insure to the benefit of the successors and permitted assigns of the
respective Parties hereto. No assignment of this Agreement, in whole or in part, shall be made without the prior written consent
of the non-assigning Parties (and shall not relieve the assigning party from liability hereunder) and any purposed assignment of
this Agreement in contravention of the foregoing shall be null and void ab initio.

 

Section 11.11.         Applicable
Law; Venue.

 

(a)          This
Agreement shall be governed by and construed and enforced in accordance with the laws of the State of Delaware without giving effect
to the conflict of law rules and principles of that state. To the fullest extent permitted by Law, the Parties hereby unconditionally
and irrevocably waive and release any claim that the Law of any other jurisdiction governs this Agreement.

 

(b)          To
the maximum extent permitted by applicable Law, any legal suit, action or proceeding against any of the Parties hereto arising
out of or relating to this Agreement shall be instituted in any federal or state court in New York, New York, and each of the Parties
hereby irrevocably submits to the exclusive jurisdiction of any such court in any such suit, action or proceeding. Each of the
Parties hereby agrees to venue in such courts and hereby waives, to the fullest extent permitted by Law, any claim that any such
action or proceeding was brought in an inconvenient forum.

 

(c)          Each
of the Parties hereto irrevocably waives its right to a trial by jury with respect to any action, proceeding or claim arising out
of or relating to this Agreement.

 

Section 11.12.         Construction
of Agreement. The language in all parts of this Agreement shall be in all cases construed simply according to its fair meaning
and not strictly for or against any of the Parties hereto. Headings at the beginning of sections of this Agreement are solely for
the convenience of the Parties and are not a part of this Agreement. When required by the context, whenever the singular number
is used in this Agreement, the same shall include the plural, and the plural shall include the singular, the masculine gender shall
include the feminine and neuter genders, and vice versa.

 

Section 11.13.         Severability.
If any term or provision of this Agreement is determined to be illegal, unconscionable or unenforceable, all of the other terms,
provisions and sections hereof will nevertheless remain effective and be in force to the fullest extent permitted by Law.

 

Section 11.14.         Further
Assurances. Each of the Parties agrees to execute such instruments and take such further actions after the Effective Date as
may be reasonably necessary to carry out the provisions of this Agreement provided that no material additional cost or liability
shall be created thereby.

 

Section 11.15.         No
Third Party Beneficiary. It is specifically understood and agreed that no person shall be a third party beneficiary under this
Agreement, and that none of the provisions of this Agreement shall be for the benefit of or be enforceable by anyone other than
the Parties hereto and their assignees, and that only the Parties hereto and their permitted assignees shall have rights hereunder.

 

    	 	 	 

     

    

 

Section 11.16.         Binding
Agreement. Subject to the foregoing limitations, this Agreement shall extend to, and shall bind, the respective heirs, executors,
personal representatives, successors and assigns of each Company Party and each Bluerock Entity.

 

[Remainder of page intentionally left blank]

 

    	 	 	 

     

    

 

IN WITNESS WHEREOF,
each Party hereto has caused this Agreement to be duly executed on its behalf as of the day and year first above written.

 

	 	Bluerock Real Estate, L.L.C.
	 	 	 
	 	By:	/s/ R. Ramin Kamfar 
	 	Name:	R. Ramin Kamfar
	 	Title:	Chief Executive Officer
	 	 	 
	 	Bluerock Real Estate Holdings, LLC
	 	By:	Bluerock Residential Growth REIT, Inc.
	 	Its:	Sole Member
	 	 	 
	 	By:	/s/ R. Ramin Kamfar 
	 	Name:	R. Ramin Kamfar
	 	Title:	Chairman of the Board, Chief Executive Officer, and President
	 	 	 
	 	Bluerock Residential Growth REIT, Inc.
	 	 	 
	 	By:	/s/ R. Ramin Kamfar 
	 	Name:	R. Ramin Kamfar
	 	Title:	Chairman of the Board, Chief Executive Officer, and President
	 	 	 
	 	Bluerock Residential Holdings, L.P.
	 	By:	Bluerock Residential Growth REIT, Inc.
	 	Its:	General Partner
	 	 	 
	 	By:	/s/ R. Ramin Kamfar 
	 	Name:	R. Ramin Kamfar
	 	Title:	Chairman of the Board, Chief Executive Officer, and President
	 	 	 
	 	Bluerock TRS Holdings, LLC
	 	By:	Bluerock Residential Growth REIT, Inc.
	 	Its:	Sole Member
	 	 	 
	 	By:	/s/ R. Ramin Kamfar 
	 	Name:	R. Ramin Kamfar
	 	Title:	Chairman of the Board, Chief Executive Officer, and President
	 	 	 
	 	Bluerock REIT Operator, LLC
	 	By:	BRG Manager, LLC, its Sole Member
	 	By:	Bluerock Real Estate, L.L.C., its Sole Member
	 	 	 
	 	By:	/s/ R. Ramin Kamfar 
	 	Name:	R. Ramin Kamfar
	 	Title:	Chief Executive Officer

 

[Signature Page to Administrative Services
Agreement]

 

    	 	 	 

     

    

 

Schedule A – The Services

 

	Service	 	Notes
	Human Resources, Investor Relations, Marketing, Legal, Administrative Services and additional related services, as needed, at cost	 	Employee costs shall be allocated based on the amount of time spent on the Company’s business by each employee of the Bluerock Entities.
	 	 	 
	Microsoft Office 365, Egnyte and Hosted Exchange	 	Actual licensing costs shall be separately charged to the Company on a per user basis, under a master license agreement. 
	 	 	 
	Yardi, Spreadsheet Server (or equivalent) and Adobe	 	Yearly and/or Quarterly licensing costs shall be prorated on a per user basis under a master license agreement.
	 	 	 
	Internet, phones, hardware maintenance contracts (Firewall, spam filter), and Cloud backup services (GFI)	 	Costs shall be allocated at an at-cost basis based on the use of such services for the benefit of the Company’s business.
	 	 	 
	Office services such as postage, meals, supplies, subscriptions and bank fees	 	Costs shall be allocated at an at-cost basis based on the use of such services for the benefit of the Company’s business.
	 	 	 
	Third-party consulting services, such as Risk Management	 	Costs shall be allocated at an at-cost basis based on the amount of time spent on the Company’s business.
	 	 	 
	Servers	 	Costs shall be allocated at an at-cost basis based on the use of such services for the benefit of the Company’s business.Exhibit 10.4

 

AMENDED
AND RESTATED EMPLOYMENT AGREEMENT

 

THIS
AMENDED AND RESTATED EMPLOYMENT AGREEMENT (this “Agreement”) by and between Bluerock Residential Growth REIT,
Inc., a Maryland corporation (the “REIT”), Bluerock Residential Holdings, L.P, a Delaware limited partnership,
the operating partnership subsidiary of the REIT (the “Operating Partnership”), and the Operating Partnership’s
subsidiary, Bluerock REIT Operator, LLC, a Delaware limited liability company (“REIT Operator” and, together
with the REIT and the Operating Partnership, the “Company”), and R. Ramin Kamfar (“Executive”)
is dated as of the Effective Date.

 

WHEREAS,
the parties originally entered into an Employment Agreement (the “Original Agreement”) on August 3, 2017 and
desire to amend and restate the Original Agreement to delay the grant and issuance of certain awards hereunder and change their
respective vesting periods; and

 

WHEREAS,
REIT Operator desires to employ Executive and Executive desires to be employed by REIT Operator to provide services for the Company
on the terms contained herein.

 

NOW,
THEREFORE, in consideration of the mutual covenants contained herein and other good and valuable consideration, the receipt and
sufficiency of which are hereby acknowledged, the parties hereto agree as follows:

 

1.                  
Term of Employment.

 

(a)               
Subject to the terms and conditions of this Agreement, REIT Operator hereby employs Executive, and Executive hereby accepts
employment with REIT Operator, in the positions and with the duties and responsibilities as set forth in Section 2 hereof for the
Term of Employment (as defined below). The REIT and the Operating Partnership agree to be jointly and severally liable for all
obligations of the REIT Operator under this Agreement, including payment obligations.

 

(b)               
The term of employment under this Agreement will commence on the date of the Closing (as defined in that certain Contribution
and Sale Agreement between the REIT, the Operating Partnership, BRG Manager, LLC and the other parties thereto, dated as of August
3, 2017) (the “Effective Date”) and continue for an initial term through December 31, 2020 (the “Initial
Term”), unless the Agreement is terminated sooner in accordance with Section 5 below. Commencing on the last day of the
Initial Term and on each subsequent anniversary of such date, the term of this Agreement shall automatically be extended for successive
one-year periods (each such extension, a “Renewal Term”); provided, however, that either the Company or Executive
may elect not to extend the Term of Employment by giving written notice to the other party at least sixty (60) days prior to any
such anniversary date (a “Non-Renewal”). The period commencing on the Effective Date and ending at the end of
the Initial Term or any Renewal Term (or earlier termination of Executive’s employment hereunder) shall hereinafter be referred
to as the “Term of Employment” or “Term.” If the Closing (as defined in that certain Contribution
and Sale Agreement between the REIT, the Operating Partnership, BRG Manager, LLC and the other parties thereto, dated as of August
3, 2017) does not occur, this Agreement will automatically terminate and be of no force or effect.

 

2.                  
Position; Duties and Responsibilities.

 

(a)               
During the Term of Employment, Executive will be employed by the REIT Operator and will serve as the Chief Executive Officer
of the REIT and Chairman of the Board of Directors of the REIT (the “Board of Directors” or the “Board”),
reporting directly to the Board. In this capacity, Executive shall have the duties, authorities and responsibilities as are required
by Executive’s position commensurate with the duties, authorities and responsibilities of persons in similar capacities in
similarly sized companies, and such other duties, authorities and responsibilities as may reasonably be assigned to

 

     

     

    

Executive as the
Board of Directors shall designate from time to time that are not inconsistent with Executive’s position and that are consistent
with the bylaws of the REIT, the limited partnership agreement of the Operating Partnership, and the operating agreement of REIT
Operator, each as may be amended from time to time, including, but not limited to, managing the affairs of the Company.

 

(b)               
During the Term of Employment, Executive will, without additional compensation, also serve on the Board of Directors of,
serve as an officer of, and/or perform such executive and consulting services for, or on behalf of, such subsidiaries of the Company
as the Board of Directors may, from time to time, request.

 

(c)               
During the Term of Employment, Executive will serve the Company faithfully, diligently, and to the best of his ability and
will devote substantially all of his business time and attention to the performance of his duties hereunder, and shall have no
other employment (unless approved by the Board of Directors); provided, that, nothing contained herein shall prohibit Executive
from (i) participating in trade associations or industry organizations in furtherance of the Company’s interests, (ii) engaging
in charitable, civic, educational or political activities, (iii) engaging in passive personal investment activities for himself
and his family, (iv) devoting time as he determines in good faith to be necessary or appropriate to fulfill his duties to Bluerock
Real Estate, LLC and its affiliates (“Bluerock”), or (v) accepting directorships or similar positions (together,
the “Personal Activities”), in each case so long as the Personal Activities do not unreasonably interfere, individually
or in the aggregate, with the performance of Executive’s duties to the Company under this Agreement or the restrictive covenants
set forth in Section 10 of this Agreement.

 

(d)               
During the Term of Employment, Executive shall perform the services required by this Agreement at the Company’s principal
offices located in New York, New York (the “Principal Location”), except for travel to other locations as may
be necessary to fulfill Executive’s duties and responsibilities hereunder.

 

3.                  
Compensation and Benefits.

 

(a)               
Base Salary. During the Term of Employment, Executive will be entitled to receive an annualized base salary (the
“Base Salary”) of not less than $400,000. The Base Salary shall be paid in accordance with REIT Operator’s
normal payroll practices, but no less often than semi-monthly.

 

(b)               
Incentive Compensation. In addition to the Base Salary, Executive shall be entitled to participate in any short-term
and long-term incentive programs (including without limitation equity compensation plans) established by the Company, including
for its senior level executives. However, during the Term of Employment, and subject to subsection (e) below, such arrangements
will include:

 

(1)   
Annual Performance Bonus. In each calendar year of the Term of Employment, Executive shall be eligible to receive
an annual incentive bonus (the “Annual Bonus”) payable in cash, pursuant to the performance criteria and targets
established and administered by the Board (or a committee of directors to whom such responsibility has been delegated by the Board),
with a target Annual Bonus of at least 100% of his Base Salary. The Annual Bonus payable to Executive each year shall be determined
and payable as soon as practicable after year-end for such year (but no later than March 15th). The Executive’s
cash bonus for the stub period of 2017 will be determined in the reasonable business judgment of the Board or another committee
of directors to whom such responsibility has been delegated by the Board. To be entitled to receive any Annual Bonus, except as
otherwise provided in Sections 5(c) and 5(d), Executive must remain employed through the last day of the calendar year to which
the Annual Bonus relates.

 

(2)   
Long-Term Equity Incentives. In connection with the Company’s

 

    	 	-2-	 

     

    

long
term incentive plan as established by the Board (or a committee of directors to whom such responsibility has been delegated by
the Board) on a rolling three year basis:

 

a.                  
Time-Vested Performance Equity Award. At the beginning of each year of the Term of
Employment beginning with the year ending December 31, 2018, Executive shall be granted an annual award of time-vested equity in
the form of long term incentive plan units of the Operating Partnership (“LTIPs”) (the “Annual LTIP
Award”). The number of LTIPs to be issued pursuant to the Annual LTIP Award shall be determined by dividing an amount
no less than $600,000 by the volume weighted average price of a share of the REIT’s Class A Common Stock, as reported on
the NYSE MKT (or then-applicable Exchange), for the twenty (20) trading days immediately preceding the date of grant of such LTIP
award. In addition, as of January 1, 2018, Executive shall be granted a pro-rated Annual LTIP Award for the 2017 stub period from
the Effective Date through December 31, 2017, with the number of LTIPs granted to be determined based on the pro-rated dollar amount
of the Annual LTIP Award, divided by the volume weighted average price of a share of the REIT’s Class A Common Stock, as
reported on the NYSE MKT (or then-applicable Exchange), for the twenty (20) trading days immediately preceding (but not including)
January 1, 2018. Each Annual LTIP Award (except the prorated award granted on January 1, 2018 for the 2017 stub period) will vest
and become nonforfeitable in three equal installments on the effective date of each anniversary of grant, subject to provisions
set forth in Sections 3(f) and 5 of this Agreement. The prorated award granted on January 1, 2018 for the 2017 stub period will
vest and become nonforfeitable as follows: (i) the first installment on December 31, 2018 in the amount of one-third (1/3) of the
2017 stub period award and (ii) the second and third installments on the second and third anniversary of the Effective Date, respectively,
in the amount of one-third (1/3) of the 2017 stub period award, in each case subject to provisions set forth in Sections 3(f) and
5 of this Agreement. 

 

b.                 
Long Term Equity Performance Award. At the beginning of each year of the Term of Employment
beginning with the year ending December 31, 2018, Executive shall be granted an annual performance award of equity in the form
of LTIPs for a three-year performance period, which award shall be subject to performance criteria and targets established and
administered by the Board (or the compensation committee of the Board (the “Compensation Committee”) or another
committee of directors to whom such responsibility has been delegated by the Board) (the “Long Term Performance Award”).
The number of LTIPs to be issued pursuant to the Long Term Performance Award shall be no fewer than 150% of the Annual LTIP Award.
Satisfaction of the performance criteria and targets established and administered by the Board (or the Compensation Committee or
another committee of directors to whom such responsibility has been delegated by the Board) with respect to each Long Term Performance
Award will be determined by the Board (or the Compensation Committee or such other committee to whom such responsibility has been
delegated) and, to the extent earned, will thereupon vest and become nonforfeitable effective as of the last day of the performance
period, subject to provisions set forth in Sections 3(f) and 5 of this Agreement.

 

(c)               
Employee Benefit Programs and Fringe Benefits. During the Term of Employment, Executive will be eligible to participate
in all executive incentive and employee benefit programs of the Company made available to the Company’s senior level executives
generally, as such programs may be in effect from time to time; provided that nothing herein shall prevent the Company from amending
or terminating any such programs pursuant to the terms thereof (except to the extent the amendment or termination would prevent
the Company from satisfying its obligations under Sections 3(a), 3(b) and 4). The REIT Operator will reimburse Executive for any
and all necessary, customary and usual business expenses incurred and paid by Executive in connection with his employment upon
presentation to the Company of reasonable substantiation and documentation, and in accordance with, and subject to the terms and
conditions of, applicable Company policies. During the Term, Executive shall be entitled to paid vacation and, if applicable paid
time off, per year of the Term (as pro-rated for any stub employment period) in accordance with the Company’s policy on accrual
and use applicable to employees as in effect from time

 

    	 	-3-	 

     

    

to time, but in
no event shall Executive accrue less than four (4) weeks of vacation per calendar year (pro-rated for any stub employment
period).

 

(d)               
Insurance; Indemnification. Executive shall be covered by such comprehensive directors’ and officers’
liability insurance and errors and omissions liability insurance as the Company or the REIT shall have established and maintained
in respect of its directors and officers generally and at its expense, and the Company or the REIT shall cause such insurance policies
to be maintained in a manner reasonably acceptable to Executive both during and, in accordance with Section 5(i) below, after Executive’s
employment with the Company. Executive shall also be entitled to indemnification rights, benefits and related expense advances
and reimbursements to the same extent as any other director or officer of the Company or the REIT and to the maximum extent permitted
under applicable law pursuant to an indemnification agreement, including “tail” coverage following termination of service
(the “Indemnification Agreement”).

 

(e)               
Annual Review. Beginning in 2018, the Compensation Committee of the Board of Directors (the “Compensation
Committee”) will undertake a formal review of the amounts payable and potentially payable to Executive pursuant to this
Section 3 (the “Compensation and Benefits”) no less frequently than annually. The Compensation Committee shall
be entitled to make all determinations relating to this Section 3(e) in its sole discretion; provided, however, that neither the
Compensation Committee nor the Company shall be entitled to decrease Executive’s Base Salary or the annual or long-term target
incentive opportunities (as referenced in Section 3(b)).

 

(f)                
Clawback/Recoupment. Notwithstanding any other provisions in this Agreement to the contrary, any compensation provided
to, or gain realized by, Executive pursuant to this Agreement or any other agreement or arrangement with the Company shall be subject
to repayment and/or forfeiture by Executive to the Company if and to the extent any such compensation or gain (i) is or becomes
subject to the “clawback” policy adopted by the REIT and in effect as of the date hereof that is applicable to Executive
and other similarly situated executives, or (ii) is, or in the future, becomes subject to, any law, rule, requirement or regulation
which imposes mandatory recoupment or forfeiture, under circumstances set forth in such law, rule, requirement or regulation.

 

4.                  
Initial Commitment Award. On January 1, 2018, Executive shall be granted an award of LTIPs (the “Initial
Commitment Award”). The number of LTIPs to be issued pursuant to this Section 4 shall be determined by dividing $2,500,000
by the volume weighted average price of a share of the REIT’s Class A Common Stock, as reported on the NYSE MKT (or then-applicable
Exchange), for the twenty (20) trading days immediately preceding the date of grant. The Initial Commitment Award will vest and
become nonforfeitable as follows: (i) the first installment on December 31, 2018 in the amount of one-fifth (1/5) of the Initial
Commitment Award and (ii) the second through fifth installments on the second through fifth anniversary of the Effective Date,
respectively, in an amount equal to one-fifth (1/5) of the Initial Commitment Award, in each case subject to provisions set forth
in Sections 3(f) and 5 of this Agreement.

 

5.                  
Termination of Employment.

 

(a)               
Termination Due to Disability. The Company may cause the REIT Operator to terminate Executive’s employment,
to the extent permitted by applicable law, if Executive (i) is unable to engage in any substantial gainful activity by reason of
any medically determinable physical or mental impairment which can be expected to result in death or can be expected to last for
a continuous period of not less than twelve (12) months, or (ii) is, by reason of any medically determinable physical or mental
impairment which can be expected to result in death or can be expected to last for a continuous period of not less than twelve
(12) months, actually receiving income replacement benefits for a period of not less than three months under an accident and health
plan covering employees of the Company (“Disability”). If Executive’s employment is terminated under this
Section 5(a) for Disability, (A) the Company shall pay to

 

    	 	-4-	 

     

    

Executive the
Accrued Benefits pursuant to Section 5(i) below, and (B) Executive’s outstanding equity awards (x) that are subject solely
to time-based vesting conditions (including, but not limited to, each Annual LTIP Award and the Initial Commitment Award), shall
become fully vested as of Executive’s date of termination for Disability and (y) that are subject to performance-based vesting
conditions (including each Long Term Performance Award), will vest if and to the extent the applicable performance-based vesting
conditions are satisfied as of the date of termination (without regard to the original length of the performance period); provided,
however, that any performance-based award that vests pursuant to clause (y) will be pro-rated for the actual number of days in
the applicable vesting period preceding the date of termination of Executive’s employment.

 

(b)               
Termination Due to Death. Executive’s employment shall terminate automatically upon Executive’s death
during the Term of Employment. If Executive’s employment is terminated because of Executive’s death, (i) the Company
shall pay to Executive’s executor, legal representative, administrator or designated beneficiary, as applicable, the Accrued
Benefits pursuant to Section 5(i) below, and (ii) Executive’s executor, legal representative, administrator or designated
beneficiary, as applicable, shall be entitled to all of Executive’s outstanding equity awards (x) that are subject solely
to time-based vesting conditions (including, but not limited to, each Annual LTIP Award and the Initial Commitment Award), which
shall become fully vested as of Executive’s date of termination and (y) that are subject to performance-based vesting conditions
(including each Long Term Performance Award), will vest if and to the extent the applicable performance-based vesting conditions
are satisfied as of the date of termination (without regard to the original length of the performance period); provided, however,
that any performance-based award that vests and becomes payable pursuant to clause (y) will be pro-rated for the actual number
of days in the applicable performance period preceding Executive’s death. Otherwise, the Company shall have no further liability
or obligation under this Agreement to Executive’s executors, legal representatives, administrators, heirs or assigns or any
other person claiming under or through Executive.

 

(c)               
Company Non-Renewal. In the event that Executive’s employment is terminated by reason of a Non-Renewal by the
Company and Executive is willing and able, at the time of such Non-Renewal, to continue performing services on the terms and conditions
set forth herein for the Renewal Term that would have occurred but for the Non-Renewal, then Executive shall be entitled to the
payments and benefits provided in Section 5(d) below, subject to the terms and conditions of Section 5(d) including the
Release Requirement.

 

(d)               
Termination by the Company Without Cause or by Executive for Good Reason. The Company may cause the REIT Operator
to terminate Executive’s employment at any time without Cause (as provided in Section 7) upon not less than sixty (60) days’
prior written notice to Executive, and Executive may terminate Executive’s employment by resigning for Good Reason (as provided
in Section 7) upon not less than sixty (60) days’ prior written notice of such resignation to the Company. Upon any such
termination of Executive’s employment without Cause or for Good Reason, Executive shall be entitled to receive the following:

 

(i)                
The Accrued Benefits, pursuant to Section 5(i) below; and

 

(ii)              
if Executive signs a general release of claims in favor of the Company in substantially the same form as attached hereto
as Exhibit A, and subject to the expiration of any applicable or legally required revocation period, all within sixty (60)
days after the effective date of termination (the “Release Requirement”):

 

(1)               
the Company shall pay Executive a cash amount (the “Severance Amount”) equal to three (3) (the “Severance
Multiple”) times the sum of (A) his then-current Base Salary and (B) the average of the Annual Bonuses paid to Executive
in accordance with Section 3(b) hereof for the two years preceding the termination; provided, however, if Executive’s termination

 

    	 	-5-	 

     

    

pursuant
to this Section 5(d) occurs (I) during the year ending December 31, 2017, Executive’s Target Bonus (as per the incentive
plan established for Executive) (“Target Bonus”) will be used in lieu of the average described in Section 5(d)(ii)(1)(B),
or (II) during the year ending December 31, 2018, the Annual Bonus paid or payable to Executive for the year ending December 31,
2017 will be used in lieu of the average described in Section 5(d)(ii)(1)(B); provided, further, that if the termination occurs
during the years ending December 31, 2018 or 2019, the 2017 Annual Bonus shall be annualized for purposes of calculating the average
described in Section 5(d)(ii)(1)(B). Subject to Section 30, the Severance Amount will be paid in accordance with the normal payroll
practice of the REIT Operator over the twelve-month period beginning within sixty (60) days following the effective date of Executive’s
termination (with the first payment to include any installment payments that would have been made during such sixty (60) day period
if payments had commenced on the effective date of Executive’s termination);

 

(2)               
within sixty (60) days following the effective date of termination, the Company shall pay Executive an amount equal to Executive’s
Target Bonus for the then-current calendar year of Executive’s employment (annualized, to the extent the 2017 Target Bonus
is used), pro-rated for the number of days in such calendar year ending on the effective date of Executive’s termination
of employment;

 

(3)               
Executive’s outstanding equity awards (x) that are subject solely to time-based vesting conditions (including, but
not limited to each Annual LTIP Award and the Initial Commitment Award), will become fully vested as of the effective date of Executive’s
termination and (y) that are subject to performance-based vesting conditions (including that each Long Term Performance Award),
will vest if and to the extent the applicable performance-based vesting conditions are satisfied as of the date of termination
(without regard to the original length of the performance period); provided, however, that any performance-based award that vests
pursuant to clause (y) will be pro-rated for the actual number of days in the applicable vesting period preceding the effective
date of Executive’s termination of employment; and

 

(4)               
if Executive is entitled to elect continuation of coverage under any Company group health plan pursuant to applicable law,
the REIT Operator will reimburse Executive for 100% of the COBRA premiums incurred by Executive for Executive and his dependents
under such health care plan during the duration of Executive’s COBRA continuation period.

 

(e)               
Termination by the Company for Cause. The Company may cause the REIT Operator to terminate Executive’s employment
at any time for Cause pursuant to the provisions of Section 7(a) below, in which event as of the effective date of such termination
all payments and benefits under this Agreement shall cease and all then unvested awards or benefits shall be forfeited, except
for the continuing obligation to pay Executive his Accrued Benefits.

 

(f)                
Voluntary Termination by Executive without Good Reason. Executive may voluntarily terminate his employment without
Good Reason upon sixty (60) days’ prior written notice. In any such event, after the effective date of such termination,
no further payments or benefits shall be due under this Agreement and all then unvested awards or benefits shall be forfeited,
except for the obligation to pay Executive after the effective date of such termination his Accrued Benefits. For the avoidance
of doubt, Non-Renewal by Executive shall constitute a termination under this Section 5(f).

 

(g)               
Notice of Termination. Any termination of Executive’s employment shall be communicated by a written notice
of termination to the other party hereto given in accordance with Section 20 and shall specify the termination date in accordance
with the requirements of this Agreement.

 

(h)               
Resignation of All Other Positions. Upon termination of Executive’s employment

 

    	 	-6-	 

     

    

for any reason,
Executive shall be deemed to have resigned from all positions that Executive holds as an officer of the Company or any affiliate
of the Company, and from all positions that he holds as a member of the Board of Directors (or a committee thereof) or the board
of directors (or a committee thereof) of any subsidiary or affiliate of the REIT, unless otherwise mutually agreed with the Board
of Directors, and shall take all actions reasonably requested by the Company to effectuate the foregoing.

 

(i)                
General Provisions. (1) Upon any termination of Executive’s employment, Executive shall be entitled to receive
the following: (A) any unpaid Base Salary and accrued but unused vacation and/or paid time off (determined in accordance with Company
policy) through the date of termination (paid in cash within 30 days, or such shorter period required by applicable law, following
the effective date of termination), (B) reimbursement for all necessary, customary and usual business expenses and fees incurred
and paid by Executive prior to the effective date of termination, in accordance with Section 3(c) above (payable in accordance
with the Company’s expense reimbursement policy), and (C) vested benefits, if any, to which Executive may be entitled under
the Company’s employee benefit plans, including those as provided in Section 3(c) above (payable in accordance with the applicable
employee benefit plan), and directors and officers liability coverage pursuant to Section 3(d) for actions and inactions occurring
during the Term, and continued coverage for any actions or inactions by Executive while providing cooperation under this Agreement
(collectively, “Accrued Benefits”).

 

(2)
During any notice period required under Section 5 or Section 7, as applicable, (A) Executive shall remain employed by the Company
and shall continue to be bound by all the terms of this Agreement and any other applicable duties and obligations to the Company,
(B) the Company may direct Executive not to report to work, and (C) Executive shall only undertake such actions on behalf of the
Company, consistent with his position, as expressly directed by the Board of Directors.

 

The
parties agree that a termination of Executive’s employment pursuant to this Section 5 will not be a breach of this Agreement
and does not relieve either party of its other obligations hereunder.

 

6.                  
Code Section 280G.

 

(a)               
Treatment of Payments. Notwithstanding anything in this Agreement or any other plan, arrangement or agreement to
the contrary, in the event that an independent, nationally recognized, accounting firm which shall be designated by the Company
with Executive’s written consent (which consent shall not be unreasonably withheld) (the “Accounting Firm”)
shall determine that any payment or benefit received or to be received by Executive from the Company or any of its affiliates or
from any person who effectuates a change in control or effective control of the Company or any of such person’s affiliates
(whether pursuant to the terms of this Agreement or any other plan, arrangement or agreement) (all such payments and benefits,
the “Total Payments”) would fail to be deductible under Section 280G of the Internal Revenue Code of 1986, as
amended (the “Code”), or otherwise would be subject (in whole or part) to the excise tax imposed by Section
4999 of the Code (the “Excise Tax”) then the payments or benefits to be received by Executive that are subject
to Section 280G or 4999 of the Code shall be reduced to the extent necessary so that no portion of the Total Payments is subject
to the Excise Tax, but such reduction shall occur if and only to the extent that the net amount of such Total Payments, as so reduced
(and after subtracting the net amount of federal, state and local income taxes, and employment, Social Security and Medicare taxes
on such reduced Total Payments), is greater than or equal to the net amount of such Total Payments without such reduction (but
after subtracting the net amount of federal, state and local income taxes and employment, Social Security and Medicare taxes on
such Total Payments and the amount of Excise Tax (or any other excise tax) to which Executive would be subject in respect of such
unreduced Total Payments). For purposes of this Section 6(a), the above tax amounts shall be determined by the Accounting Firm,
applying the highest marginal rate under Section 1 of the Code and under state and local laws which applied (or is likely to apply)
to Executive’s taxable income for the tax year in which the transaction which causes the application of Section 280G or 4999
of the Code occurs, or such other rate(s)

 

    	 	-7-	 

     

    

as the Accounting
Firm determines to be likely to apply to Executive in the relevant tax year(s) in which any of the Total Payments is expected to
be made. If the Accounting Firm determines that Executive would not retain a larger amount on an after-tax basis if the Total Payments
were so reduced, then Executive shall retain all of the Total Payments.

 

(b)               
Ordering of Reduction. In the case of a reduction in the Total Payments pursuant to Section 6(a), the Total Payments
will be reduced in the following order: (A) payments that are payable in cash (and that are not deferred compensation within
the meaning of Section 409A of the Code) that are valued at full value under Treasury Regulation Section 1.280G-1, Q&A 24(a)
will be reduced (if necessary, to zero), with amounts that are payable last reduced first; (B) payments and benefits due in
respect of any equity valued at full value under Treasury Regulation Section 1.280G-1, Q&A 24(a) (and that are not deferred
compensation within the meaning of Section 409A of the Code), with the highest values reduced first (as such values are determined
under Treasury Regulation Section 1.280G-1, Q&A 24) will next be reduced; (C) payments that are payable in cash (and that are
not deferred compensation within the meaning of Section 409A of the Code) that are valued at less than full value under Treasury
Regulation Section 1.280G-1, Q&A 24, with amounts that are payable last reduced first, will next be reduced; (D) payments
and benefits (that are not deferred compensation within the meaning of Section 409A of the Code) due in respect of any equity valued
at less than full value under Treasury Regulation Section 1.280G-1, Q&A 24, with the highest values reduced first (as such
values are determined under Treasury Regulation Section 1.280G-1, Q&A 24) will next be reduced; and (E) all other cash
or non-cash benefits not otherwise described in above will be next reduced pro-rata with any payments or benefits that are deferred
compensation within the meaning of Section 409A of the Code being reduced last.

 

(c)               
Certain Determinations. For purposes of determining whether and the extent to which the Total Payments will be subject
to the Excise Tax: (A) no portion of the Total Payments the receipt or enjoyment of which Executive shall have waived at such
time and in such manner as not to constitute a “payment” within the meaning of Section 280G(b) of the Code will be
taken into account; (B) no portion of the Total Payments will be taken into account which, in the opinion of the Accounting
Firm, does not constitute a “parachute payment” within the meaning of Section 280G(b)(2) of the Code (including by
reason of Section 280G(b)(4)(A) of the Code) and, in calculating the Excise Tax, no portion of such Total Payments will be taken
into account which, in the opinion of the Accounting Firm, constitutes reasonable compensation for services actually rendered,
within the meaning of Section 280G(b)(4)(B) of the Code, in excess of the “base amount” (as set forth in Section 280G(b)(3)
of the Code) that is allocable to such reasonable compensation; and (C) the value of any non-cash benefit or any deferred
payment or benefit included in the Total Payments will be determined by the Accounting Firm in accordance with the principles of
Sections 280G(d)(3) and (4) of the Code. Executive and the Company shall furnish such documentation and documents as may be necessary
for the Accounting Firm to perform the requisite calculations and analysis under this Section 6 (and shall cooperate to the extent
necessary for any of the determinations in this Section 6(c) to be made), and the Accounting Firm shall provide a written report
of its determinations hereunder, including detailed supporting calculations. If the Accounting Firm determines that aggregate Total
Payments should be reduced as described above, it shall promptly notify Executive and the Company to that effect. In the absence
of manifest error, all determinations by the Accounting Firm under this Section 6 shall be binding on Executive and the Company
and shall be made as soon as reasonably practicable following the later of Executive’s date of termination of employment
or the date of the transaction which causes the application of Section 280G of the Code. The Company shall bear all costs, fees
and expenses of the Accounting Firm and any legal counsel retained by the Accounting Firm.

 

(d)               
Additional Payments. If Executive receives reduced payments and benefits by reason of this Section 6 and it is established
pursuant to a determination of a court of competent jurisdiction which is not subject to review or as to which the time to appeal
has expired, or pursuant to an Internal Revenue Service proceeding, that Executive could have received a greater amount without
resulting in any Excise Tax, then the Company shall thereafter pay Executive the aggregate additional amount which could

 

    	 	-8-	 

     

    

have been paid
without resulting in any Excise Tax as soon as reasonably practicable following such determination.

 

7.                  
Definitions.

 

(a)               
“Cause” shall mean any of the following grounds for termination of Executive’s employment:

 

(i)                   
Executive’s conviction of, or plea of guilty or nolo contendere to, a felony (excluding traffic-related felonies),
or any financial crime involving the Company (including, but not limited to, fraud, embezzlement or misappropriation of Company
assets) which termination shall become effective immediately as of the date the Board of Directors determines to terminate this
Agreement, which action must be taken on or after the date of such conviction or plea or within sixty (60) days thereafter;

 

(ii)              
Executive’s willful and gross misconduct in the performance of his duties (other than by reason of his incapacity
or disability) it being expressly understood that the Company’s dissatisfaction with Executive’s performance shall
not constitute Cause;

 

(iii)            
Executive’s continuous, willful and material breach of this Agreement after written notice of such breach has been
given by the Board in its reasonable discretion exercised in good faith; provided that, in no event shall any action or omission
in subsection (ii) or (iii) constitute “Cause” unless (1) the Company gives notice to Executive stating that Executive
will be terminated for Cause, specifying the particulars thereof in reasonable detail and the effective date of termination (which
shall be no less than ten (10) business days following the date on which such written notice is received by Executive) (the “Cause
Termination Notice”), (2) the Company provides Executive and his counsel with an opportunity to appear before the Board
to rebut or dispute the alleged reason for termination on a specified date that is at least three (3) business days following the
date on which the Cause Termination Notice is given, but prior to the stated termination date described in clause (1), and (3)
a majority of the Board (calculated without regard to Executive, if applicable) determines that Executive has failed to materially
cure or cease such misconduct or breach within ten (10) business days after the Cause Termination Notice is given to him. For purposes
of the foregoing sentence, no act, or failure to act, on Executive’s part shall be considered willful unless done or omitted
to be done, by him not in good faith and without reasonable belief that his action or omission was in the best interest of the
Company, and any act or omission by Executive pursuant to the authority given pursuant to a resolution duly adopted by the Board
or on the advice of counsel to the Company will be deemed made in good faith and in the best interest of the Company.

 

(b)               
“Good Reason” shall mean, without Executive’s consent:

 

(i)                
the assignment to Executive of duties or responsibilities substantially inconsistent with Executive’s title at the
Company or a material diminution in Executive’s title, authority or responsibilities; provided, that failing to maintain
Executive as a member of the Board shall constitute Good Reason;

 

(ii)              
A material reduction in Executive’s Base Salary or the annual or long-term target incentive opportunities (as referenced
in Section 3(b)) during the Term;

 

(iii)            
A continuous, willful and material breach by the Company of this Agreement; or

 

(iv)             
the relocation (without the written consent of Executive) of Executive’s principal place of employment by more than
thirty-five (35) miles from the Principal Location.

 

    	 	-9-	 

     

    

 

Notwithstanding
the foregoing, (1) Good Reason shall not be deemed to exist unless notice of termination on account thereof (specifying a termination
date of at least sixty (60) days but no more than ninety (90) days from the date of such notice) is given no later than ninety
(90) days after the time at which the event or condition purportedly giving rise to Good Reason first occurs or arises and (2)
if there exists an event or condition that constitutes Good Reason, the Company shall have thirty (30) days from the date notice
of such termination is received to cure such event or condition and, if the Company does so, such event or condition shall not
constitute Good Reason hereunder; provided, however, that the Company’s right to cure such event or condition shall not apply
if there have been repeated breaches by the Company.

 

8.                  
Confidentiality/Non-Disclosure. Executive acknowledges that, in the course of his employment with the Company, he
has become and/or will become acquainted and trusted with (a) certain confidential information and trade secrets, which confidential
information includes, but is not limited to, proprietary software, customer lists and information, information concerning the Company’s
finances, business practices, long-term and strategic plans and similar matters, information concerning the Company’s formulas,
designs, methods of business, trade secrets, technology, business operations, business records and files, and any other information
that is not generally known to the public or within the industry or trade in which the Company competes and was not known to Executive
prior to his employment with the Company, and (b) information of third parties that the Company is under a duty to maintain as
confidential (collectively, “Confidential Information”). Except in furtherance of his duties hereunder, Executive
agrees that he will not cause any Confidential Information to be disclosed to third parties without the prior written consent of
the Company and that he will not, without the prior written consent of the Company, divulge or make any use of such Confidential
Information, except as may be required by law and/or to fulfill his obligations hereunder. Upon the termination of Executive’s
employment for whatever reason, or at any time the Company may request, Executive shall immediately deliver to the Company all
of the Company’s property in Executive’s possession or under Executive’s control, including but not limited to
all originals and copies of memoranda, notes, plans, records, reports, computer files, disks and tapes, thumb drives, printouts,
worksheets, source code, software, programming work, and all documents, forms, records or other information, in whatever form it
may exist, regarding the Company’s business, clients, products or services. Confidential Information does not include information
that: (i) becomes generally known to the public subsequent to disclosure to Executive through no wrongful act of Executive or any
representative of Executive; (ii) was known to the public prior to its disclosure to Executive; or (iii) Executive is required
to disclose by applicable law, regulation or legal process. Additionally, the Parties acknowledge and agree that the obligations
of this Section 8 shall be in addition to and shall not diminish any obligations that Executive may have to Company or any customer
of Company under any separate Non-Disclosure and Confidentiality Agreement that Executive may execute during his employment with
the Company.

 

9.                  
Intellectual Property, Inventions and Patents. Executive acknowledges that all discoveries, concepts, ideas, inventions,
innovations, improvements, developments, methods, designs, analyses, drawings, reports, patent applications, copyrightable work
and mask work (whether or not including any Confidential Information) and all registrations or applications related thereto, all
other proprietary information and all similar or related information (whether or not patentable) which relate to the Company’s
actual or anticipated business, research and development or existing or future products or services and which were or are conceived,
developed, contributed to or made or reduced to practice by Executive (whether alone or jointly with others) while employed by
the Company, whether before or after the date of this Agreement (“Work Product”), belong to the Company. Executive
shall promptly disclose such Work Product to the Board of Directors of the Company and, at the Company’s expense, perform
all actions reasonably requested by the Board of Directors of the Company (whether during or after the Term of Employment) to establish
and confirm such ownership (including assignments, consents, powers of attorney and other instruments). Executive acknowledges
that all copyrightable Work Product shall be

 

    	 	-10-	 

     

    

deemed to
constitute “works made for hire” under the U.S. Copyright Act of 1976, as amended, and that the Company shall own all
rights therein. To the extent that any such copyrightable work is not a “work made for hire,” Executive hereby assigns
and agrees to assign to the Company all right, title and interest, including a copyright, in and to such copyrightable work. The
foregoing provisions of this Section 9 shall not apply to any invention that Executive developed entirely on Executive’s
own time without using the Company’s equipment, supplies, facilities or trade secret information, except for those inventions
that (i) relate to the Company’s business or actual or demonstrably anticipated research or development, or (ii) result from
any work performed by Executive for the Company.

 

10.              
Restrictive Covenants.

 

(a)               
Notification of New Employer. During Executive’s employment and for a period of twelve (12) months immediately
following the termination of his employment with the Company, Executive will advise the Company of any new employer of his, or
any other person or entity for whom he may perform services, within three (3) days after commencing to work for such employer or
other person or entity. Executive hereby agrees to notify, and grant consent to notification by the Company to, any new employer,
or other person or entity for whom he may perform services, of his obligations under this Agreement.

 

(b)               
Solicitation of Employees. Executive agrees that during his employment and for a period of twelve (12) months immediately
following the termination of his employment with the Company for any reason, whether with or without cause, he will not directly
or indirectly, for himself or any other person or entity:

 

(i)                
solicit, induce, recruit or encourage any of the Company’s employees, exclusive consultants or exclusive independent
contractors or any person who provides services to the Company to terminate or reduce their employment or other relationship with
the Company;

 

(ii)              
hire any individual who is (or was, within the six (6) month period immediately preceding such hiring) an employee, exclusive
consultant, or exclusive independent contractor of the Company; or

 

(iii)            
attempt to do any of the foregoing.

 

(c)               
Solicitation of Customers. Executive agrees that during his employment and for a period of eighteen (18) months immediately
following the termination of his employment with the Company for any reason, whether with or without cause, he will not directly
or indirectly, (i) solicit, entice, or induce any Customer for the purpose of providing, or provide, products or services that
are competitive with the products or services provided by the Company, or (ii) solicit, entice, or induce any Customer to terminate
or reduce its business with (or refrain from increasing its business with) the Company.

 

As
used in this Section 10(c), “Customer” means any person or entity to which the Company provided products or
services (or was invested in products offered by the Company), and with which Executive had contact on behalf of the Company, within
the last twelve (12) months of his employment with the Company.

 

(d)               
Noncompetition. Executive agrees that during his employment and for a period of eighteen (18) months immediately
following the termination of his employment with the Company for any reason, whether with or without cause, he will not directly
or indirectly:

 

(i)                
have any ownership interest in a Competitor other than (1) Bluerock or (2) passive investment of no more than 5% of the
outstanding equity or debt securities of a Competitor; or

 

    	 	-11-	 

     

    

(ii)              
engage in or perform services other than Personal Activities (whether as an employee, consultant, proprietor, partner, director
or otherwise) for any Competitor, if such services either (1) are the same as or similar to (individually or in the aggregate)
the services Executive performed for the Company during his employment with the Company, or (2) are performed with respect to products
or services of the Competitor that are competitive with the products or services provided by the Company with which Executive was
involved during his employment with the Company or about which he received Confidential Information during his employment with
the Company.

 

As
used in this section, “Competitor” means: (i) any private or publicly traded real estate investment trust, fund
or other investment vehicle or program whose principal place of business is in the United States and whose business strategy is
based on investing in, acquiring or developing multifamily real estate, whether directly or indirectly through joint ventures,
or (ii) any entity whose principal place of business is in the United States and that advises (including any external advisor)
such investment vehicles or programs.

 

The
scope of the covenant set forth in Section 10(d) will be within or with respect to the United States. Executive acknowledges that
the Company’s technology and products have nationwide application, including without limitation over the Internet and that
such geographic scope is therefore reasonable.

 

(e)               
Non-Disparagement. The Company and Executive each acknowledge that any disparaging comments by either party against
the other are likely to substantially depreciate the business reputation of the other party. The Company and Executive further
agree that neither party will directly or indirectly defame, disparage, or publicly criticize the services, business, integrity,
veracity or reputation of the of the other party, including but not limited to, the Company or its owners, officers, directors,
or employees in any forum or through any medium of communication. Nothing in this Agreement will preclude Executive or the Company
from supplying truthful information to any governmental authority or in response to any lawful subpoena or other legal process.

 

(f)                
Executive acknowledges and agrees that during his employment with Company he will owe the Company duties of good faith,
loyalty and non-disclosure and such statutory duties that are applicable to an officer of the Company under the laws of the State
of New York.

 

11.              
Remedies. Executive acknowledges and agrees that the restrictions set forth in this Agreement are critical and necessary
to protect the Company’s legitimate business interests; are reasonably drawn to this end with respect to duration, scope,
and otherwise; are not unduly burdensome; are not injurious to the public interest; and are supported by adequate consideration.
Executive agrees that it would be impossible or inadequate to measure and calculate the Company’s damages from any breach
of the restrictions set forth herein. Accordingly, Executives agrees that if he breaches or threatens to breach any of such restrictions,
the Company will have available, in addition to any other right or remedy available, the right to obtain an injunction from a court
of competent jurisdiction restraining such breach or threatened breach and to specific performance of any such provision of this
Agreement. Executive further agrees that no bond or other security will be required in obtaining such equitable relief and he hereby
consents to the issuance of such injunction and to the ordering of specific performance. Executive further acknowledges and agrees
that (a) any claim he may have against the Company, whether under this Agreement or otherwise, will not be a defense to enforcement
of the restrictions set forth in this Agreement, (b) the circumstances of his termination of employment with the Company will have
no impact on his obligations under this Agreement, and (c) this Agreement is enforceable by the Company and its respective subsidiaries,
affiliates, successors and permitted assigns.

 

12.              
LTIP General Provisions. Distributions on LTIPs will be paid from the date of grant; provided that, only for the
Long Term Performance Awards, distributions until the last day of the three year performance period (or the date of forfeiture
if earlier), shall be paid at the rate of ten percent (10%) of the distributions otherwise payable with respect to LTIPs granted
under such Long Term Performance Awards;

 

    	 	-12-	 

     

    

provided further,
with respect to each LTIP granted for Long Term Performance Awards and that vests in accordance with this Agreement, Executive
shall be entitled to receive, as of the date of such vesting, a single cash payment equal to the distributions payable with respect
thereto back to the date of grant, minus the distributions already paid in accordance with the preceding clause. The REIT will
use its best efforts to ensure that there are sufficient shares of Common Stock and/or LTIPs available under a shareholder approved
equity plan of the REIT to provide for the equity grants described in Sections 3(b) and 4 of this Agreement; however, in the event
there are insufficient shares of Common Stock and/or LTIPs available under a shareholder approved equity plan of the REIT to support
any such grant of any LTIPs, on the vesting date of any LTIP grant contemplated pursuant to Section 3(b) or 4, as applicable, had
such LTIPs been granted as provided therein, the Company shall make a cash payment to Executive equal to the number of LTIPs that
would have vested on such date multiplied by (a) to the extent the Economic Capital Account Balance of the LTIPs has not achieved
capital account equivalence with a Common Unit held by the General Partner as of such date (assuming, for purposes of this clause
(a) that the LTIPs had been granted and treated as outstanding under and received allocations and/or adjustments pursuant to the
Second Amended and Restated Agreement of Limited Partnership of Bluerock Residential Holdings, L.P., as amended (the “LP
Agreement”)), an amount equal to such deemed Economic Capital Account Balance of the LTIPs, and (b) to the extent
the Economic Capital Account Balance of the LTIPs has achieved capital account equivalence with a Common Unit held by the General
Partner as of such date (assuming, for purposes of this clause (b) that the LTIPs had been granted and treated as outstanding under
and received allocations and/or adjustments pursuant to the LP Agreement), an amount equal to the average of the closing sales
price of the Common Stock for the 10 trading dates preceding the vesting date. The capitalized terms used in this section, if not
otherwise defined in this Agreement, will have the meanings set forth in the LP Agreement.

 

13.              
Additional Acknowledgments.

 

(a)               
Executive and the Company each agree and intend that Executive’s obligations under this Agreement (to the extent not
perpetual) be tolled during any period that Executive is in breach of any of the obligations under this Agreement, so that the
Company is provided with the full benefit of the restrictive periods set forth herein.

 

(b)               
Executive also agrees that, in addition to any other remedies available to the Company and notwithstanding any provision
of this Agreement to the contrary, in the event Executive breaches in any material respect any of his obligations under Sections
8, 9 or 10, the Company shall immediately cease all payments and benefits (including vesting of equity-based awards) under Section
5 and will have no further obligations thereunder.

 

(c)               
Executive and the Company further agree that, in the event that any provision of Section 10 is determined by a court of
competent jurisdiction to be unenforceable by reason of its being extended over too great a time, too large a geographic scope
or too great a range of activities, that provision will be deemed to be modified to permit its enforcement to the maximum extent
permitted by law. Each of Executive and the Company acknowledges and agrees that the Company will suffer irreparable harm from
a breach by Executive of any of the covenants or agreements contained in Sections 8, 9, or 10. Executive further acknowledges that
the restrictive covenants set forth in those Sections are of a special, unique, and extraordinary character, the loss of which
cannot be adequately compensated by monetary damages. Executive agrees that the terms and provisions of Sections 8, 9, or 10 are
fair and reasonable and are reasonably required for the protection of the Company in whose favor such restrictions operate. Executive
acknowledges that, but for Executive’s agreements to be bound by the restrictive covenants set forth in Sections 8, 9, or
10, the Company would not have entered into this Agreement. In the event of an alleged or threatened breach by Executive of any
of the provisions of Sections 8, 9, or 10, the Company or its successors or assigns may, in addition to all other rights and remedies
existing in its or their favor, apply to any court of competent jurisdiction for specific performance and/or injunctive or other
equitable relief in order to enforce or prevent any violations of the provisions hereof (including, without limitation, the

 

    	 	-13-	 

     

    

extension of the
noncompetition period or nonsolicitation period, as applicable, by a period equal to the duration of the violation).

 

(d)               
Executive and the Company further agree that REIT Operator is the employer of Executive for all U.S. federal income tax
and employment tax purposes. In accordance with such status, to the extent that any provision herein permits the Company to control,
supervise, or otherwise determine the rights, responsibilities, or obligations of Executive hereunder; to remunerate, reimburse,
or otherwise provide any economic benefit to Executive hereunder (or to determine the amount of such payments or benefits); or
to otherwise initiate, terminate, or otherwise alter the terms of Executive’s employment with REIT Operator hereunder, it
is acknowledged and agreed by all parties hereto that such actions are taken on behalf of REIT Operator, which hereby grants all
necessary power and authority to the Company to take such actions on behalf of REIT Operator.

 

14.              
Executive’s Cooperation. During the Term of Employment and, to the extent that the Company pays Executive’s
actual, reasonable and documented legal fees for legal counsel, also for a reasonable period thereafter, Executive shall reasonably
cooperate with the Company in any internal investigation, any administrative, regulatory or judicial investigation or proceeding
or any dispute with a third party as reasonably requested by the Company to the extent that such investigation, proceeding or dispute
may relate to matters in which Executive has knowledge as a result of Executive’s employment with the Company or Executive’s
serving as an officer or director of the Company (including Executive being available to the Company upon reasonable notice for
interviews and factual investigations, appearing at the Company’s request, after reasonable notice, to give testimony without
requiring service of a subpoena or other legal process, volunteering to the Company all pertinent information and turning over
to the Company all relevant documents which are or may come into Executive’s possession, all at times and on schedules that
are reasonably consistent with Executive’s other permitted activities and commitments). Without limiting the generality of
the foregoing, to the extent that the Company seeks such assistance, the Company shall use reasonable business efforts, whenever
possible, to provide Executive with reasonable advance notice of its need for Executive’s assistance and will attempt to
coordinate with Executive the time and place at which Executive’s assistance will be provided with the goal of minimizing
the impact of such assistance on any other material pre-scheduled business commitment that Executive may have. In the event the
Company requires Executive’s reasonable assistance or cooperation in accordance with this Section 14, the Company shall reimburse
Executive solely for reasonable travel expenses (including lodging and meals) upon submission of receipts and, for cooperation
following the Term of Employment, Executive’s actual, reasonable and documented legal fees.

 

15.              
Executive’s Representations. Executive hereby represents and warrants to the Company that (a) the execution,
delivery and performance of this Agreement by Executive do not and shall not conflict with, breach, violate or cause a default
under any contract, agreement, instrument, order, judgment or decree to which Executive is a party or by which Executive is bound,
(b) Executive is not a party to or bound by any employment agreement, non-compete agreement or confidentiality agreement with any
other person or entity and (c) upon the execution and delivery of this Agreement by the Company, this Agreement shall be the valid
and binding obligation of Executive, enforceable in accordance with its terms. Executive hereby acknowledges and represents that
Executive has consulted with independent legal counsel regarding Executive’s rights and obligations under this Agreement
and that Executive fully understands the terms and conditions contained herein.

 

16.              
Corporate Opportunity. Executive agrees that during his Term of Employment and for a period of twenty-four (24) months
immediately following the termination of his employment with the Company for any reason, whether with or without Cause, Executive
will not use opportunities discovered in the course of his employment hereunder for his own personal gain or benefit. For example,
if in in any capacity described in Section 2 of this Agreement, Executive is approached about or otherwise becomes aware of a potential
investment or other business transaction that may be appropriate for the Company,

 

    	 	-14-	 

     

    

Executive
will not take that opportunity for himself, or share or disclose it to any third party, but rather Executive will bring it to the
attention of the Chief Executive Officer or the Board of Directors.

 

17.              
Insurance for Company’s Own Behalf. The Company may, at its discretion, apply for and procure in its own name
and for its own benefit life and/or disability insurance on Executive in any amount or amounts considered advisable. Executive
agrees to cooperate in any medical or other examination, supply any information and execute and deliver any applications or other
instruments in writing as may be reasonably necessary to obtain and constitute such insurance.

 

18.              
Withholding. The Company shall be entitled to deduct or withhold from any amounts owing from the Company to Executive
any federal, state, local or foreign withholding taxes, excise tax, or employment taxes that it reasonably determines are required
to be imposed with respect to Executive’s compensation or other payments or benefits from the Company or Executive’s
ownership interest in the Company (including wages, bonuses, the receipt or exercise of equity options and/or the receipt or vesting
of restricted equity).

 

19.              
Survival. The rights and obligations of the parties under this Agreement shall survive as provided herein or if necessary
or desirable to accomplish the purposes of other surviving provisions following the termination of Executive’s employment
with the Company, regardless of the manner of or reasons for such termination.

 

20.              
Notices. All notices, requests and other communications hereunder must be in writing and will be deemed to have been
duly given only if delivered personally against written receipt or mailed by prepaid first class certified mail, return receipt
requested, or mailed by overnight courier prepaid, to (a) Executive at the address on file with the Company, and (b) Company at
the following address:

 

Notices
to the Company:

 

Bluerock
REIT Operator, LLC

c/o
Bluerock Residential Growth REIT, Inc.

712
Fifth Avenue, 9th Floor

New
York, NY 10019

Attention:
Chair of the Board of Directors

 

Notices
to Executive:

 

c/o
Bluerock Residential Growth REIT, Inc.

712
Fifth Avenue, 9th Floor

New
York, NY 10019

 

All such
notices, requests and other communications will (i) if delivered personally to the address as provided in this Section 20, be deemed
given on the day so delivered, or, if delivered after 5:00 p.m. local time or on a day other than a Saturday, Sunday or any day
on which banks located in the State of New York are authorized or obligated to close (a “Business Day”), then
on the next proceeding Business Day, (ii) if delivered by certified mail in the manner described above to the address as provided
in this Section 20, be deemed given on the earlier of the third Business Day following mailing or upon receipt and (iii) if delivered
by overnight courier to the address as provided for in this Section 20, be deemed given on the earlier of the first Business Day
following the date sent by such overnight courier or upon receipt, in each case regardless of whether such notice, request or other
communication is received by any other Person to whom a copy of

 

    	 	-15-	 

     

    

such notice
is to be delivered pursuant to this Section 20. Any party hereto from time to time may change its address or other information
for the purpose of notices to that party by giving notice specifying such change to the other party hereto.

 

21.              
Severability. Whenever possible, each provision of this Agreement shall be interpreted in such manner as to be effective
and valid under applicable law, but if any provision of this Agreement is held to be invalid, illegal or unenforceable in any respect
under any applicable law or rule in any jurisdiction, such invalidity, illegality or unenforceability shall not affect any other
provision of this Agreement or any action in any other jurisdiction, but this Agreement shall be reformed, construed and enforced
in such jurisdiction as if such invalid, illegal or unenforceable provision had never been contained herein.

 

22.              
Entire Agreement. This Agreement constitutes the entire agreement among the parties pertaining to the subject matter
hereof and supersedes all prior agreements, understandings, negotiations and discussions, whether oral or written, of the parties.
For the avoidance of doubt, Executive shall not be eligible to participate in any severance plan or program during the Term of
Employment to the extent such participation would result in a duplication of benefits. This Agreement will control the vesting
and payment of any short term or long term incentive compensation (including equity compensation whether settleable in cash or
Common Stock) to the extent this Agreement provides for more favorable vesting regardless of whether such awards are granted after
the Effective Date.

 

23.              
No Strict Construction. The language used in this Agreement shall be deemed to be the language chosen by the parties
hereto to express their mutual intent, and no rule of strict construction shall be applied against any party.

 

24.              
Counterparts. This Agreement may be executed in separate counterparts, each of which is deemed to be an original
and all of which taken together constitute one and the same agreement.

 

25.              
Successors and Assigns. This Agreement is intended to bind and inure to the benefit of and be enforceable by Executive,
the Company and their respective heirs, successors and assigns, except that Executive may not assign Executive’s rights or
delegate Executive’s duties or obligations hereunder without the prior written consent of the Company. The Company may only
assign this Agreement to a successor to all or substantially all of the business and/or assets of the Company. As used in this
Agreement, “Company” shall mean the Company and any successor to its business and/or assets, which assumes and agrees
to perform the duties and obligations of the Company under this Agreement by operation of law or otherwise.

 

26.              
Choice of Law. All issues and questions concerning the construction, validity, enforcement and interpretation of
this Agreement and the exhibits and schedules hereto shall be governed by, and construed in accordance with, the laws of the State
of New York, without giving effect to any choice-of-law or conflict-of-law rules or provisions (whether of the State of New York
or any other jurisdiction) that would cause the application of the laws of any jurisdiction other than the State of New York.

 

27.              
Amendment and Waiver. The provisions of this Agreement may be amended or waived only with the prior written consent
of the Company (as approved by the Board of Directors of the Company) and Executive, and no course of conduct or course of dealing
or failure or delay by any party hereto in enforcing or exercising any of the provisions of this Agreement (including the Company’s
right to terminate the Term of Employment for Cause) shall affect the validity, binding effect or enforceability of this Agreement
or be deemed to be an implied waiver of any provision of this Agreement.

 

28.              
Consent to Jurisdiction. EACH OF THE PARTIES IRREVOCABLY SUBMITS TO THE NON-EXCLUSIVE JURISDICTION OF THE STATE AND
FEDERAL COURTS LOCATED IN THE STATE OF NEW YORK FOR THE PURPOSES OF ANY SUIT, ACTION OR OTHER PROCEEDING

 

    	 	-16-	 

     

    

ARISING
OUT OF THIS AGREEMENT, ANY RELATED AGREEMENT OR ANY TRANSACTION CONTEMPLATED HEREBY OR THEREBY. EACH OF THE PARTIES HERETO FURTHER
AGREES THAT SERVICE OF ANY PROCESS, SUMMONS, NOTICE OR DOCUMENT BY U.S. REGISTERED MAIL, RETURN RECEIPT REQUESTED, TO SUCH PARTY’S
RESPECTIVE ADDRESS SET FORTH ABOVE SHALL BE EFFECTIVE SERVICE OF PROCESS FOR ANY ACTION, SUIT OR PROCEEDING IN THE STATE OF NEW
YORK WITH RESPECT TO ANY MATTERS TO WHICH IT HAS SUBMITTED TO JURISDICTION IN THIS SECTION 27. EACH OF THE PARTIES HERETO IRREVOCABLY
AND UNCONDITIONALLY WAIVES ANY OBJECTION TO THE LAYING OF VENUE OF ANY ACTION, SUIT OR PROCEEDING ARISING OUT OF THIS AGREEMENT,
ANY RELATED DOCUMENT OR THE TRANSACTIONS CONTEMPLATED HEREBY AND THEREBY IN THE STATE AND FEDERAL COURTS LOCATED IN THE STATE OF
NEW YORK, AND HEREBY AND THEREBY FURTHER IRREVOCABLY AND UNCONDITIONALLY WAIVES AND AGREES NOT TO PLEAD OR CLAIM IN ANY SUCH COURT
THAT ANY SUCH ACTION, SUIT OR PROCEEDING BROUGHT IN ANY SUCH COURT HAS BEEN BROUGHT IN AN INCONVENIENT FORUM.

 

29.              
Waiver of Jury Trial. AS A SPECIFICALLY BARGAINED-FOR INDUCEMENT FOR EACH OF THE PARTIES HERETO TO ENTER INTO THIS
AGREEMENT (AFTER HAVING THE OPPORTUNITY TO CONSULT WITH COUNSEL), EACH PARTY HERETO EXPRESSLY WAIVES THE RIGHT TO TRIAL BY JURY
IN ANY LAWSUIT OR PROCEEDING RELATING TO OR ARISING IN ANY WAY FROM THIS AGREEMENT OR THE MATTERS CONTEMPLATED HEREBY.

 

30.              
Section 409A.

 

(a)               
Interpretation. Notwithstanding the other provisions hereof, this Agreement is intended to comply with the requirements
of Section 409A of the Code and regulations thereunder (“Section 409A”) or any exemption thereunder, to the
extent applicable, and this Agreement shall be interpreted accordingly. If necessary, any provisions of this Agreement that would
otherwise violate Section 409A shall be deemed amended to comply with Section 409A. For purposes of Section 409A, each payment
made under this Agreement shall be treated as a separate payment. In no event may Executive, directly or indirectly, designate
the calendar year of any payment that constitutes deferred compensation for purposes of Section 409A. To the extent any payment
or benefit provided under Sections 5 or 6 is contingent upon Executive’s execution of the general release of claims described
in Section 5(d)(ii), if such payment or benefit constitutes deferred compensation for purposes of Section 409A and the 60-day period
described in Section 5(d)(ii) spans calendar years, such payment and/or benefit shall be paid or commence, as applicable, in the
latter calendar year. Executive will be deemed to have a termination of employment for purposes of determining the timing of any
payments or benefits hereunder that constitute deferred compensation for purposes of Section 409A only upon a “separation
from service” within the meaning of Section 409A.

 

(b)               
Payment Delay. Notwithstanding any provision to the contrary in this Agreement, if on the date of Executive’s
termination of employment, Executive is a “specified employee” (as such term is used in Section 409A), then any amounts
payable to Executive that constitute deferred compensation for purposes of Section 409A that are payable due to Executive’s
termination of employment shall be postponed and paid (without interest) to Executive in a lump sum on the date that is six (6)
months and one (1) day following Executive’s “separation from service” with the Company (or any successor thereto);
provided, however, that if Executive dies during such six-month period and prior to payment of the postponed cash amounts hereunder,
the amounts delayed on account of Section 409A shall be paid to the personal representative of Executive’s estate on the
sixtieth (60th) day after Executive’s death.

 

(c)               
Reimbursements. All reimbursements provided under this Agreement that constitute deferred compensation under Section
409A shall be made or provided in accordance with the

 

    	 	-17-	 

     

    

requirements of
Section 409A, including, where applicable, the requirement that (i) any reimbursement is for expenses incurred during Executive’s
lifetime (or during a shorter period of time specified in this Agreement), (ii) the amount of expenses eligible for reimbursement
during a calendar year may not affect the expenses eligible for reimbursement in any other calendar year, (iii) the reimbursement
of an eligible expense will be made on or before the last day of the taxable year following the year in which the expense is incurred,
and (iv) the right to reimbursement is not subject to liquidation or exchange for another benefit.

 

 

 

*
* * * *

 

 

 

 

 

 

 

 

[Signature
Page Follows]

 

    	 	-18-	 

     

    

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

 

	Bluerock Residential Growth REIT, Inc.
	 	 
	 	 
	By:	/s/ R. Ramin Kamfar
	Name:	R. Ramin Kamfar
	Title: 	Chairman of the Board, Chief Executive Officer, and President
	 	 
	 	 
	Bluerock Residential Holdings, L.P.
	 
	By: 	Bluerock Residential Growth REIT, Inc.
	Its:	General Partner
	 	 
	 	 
	By:	/s/ R. Ramin Kamfar
	Name:	R. Ramin Kamfar
	Title:	Chairman of the Board, Chief Executive Officer, and President
	 	 
	 	 
	BLUEROCK REIT OPERATOR, LLC 
	 
	By:	BRG Manager, LLC, its Sole Member
	By:	Bluerock Real Estate, L.L.C., its Sole Member
	 	 
	 	 
	By:	/s/ R. Ramin Kamfar
	Name:	R. Ramin Kamfar
	Title: 	Chief Executive Officer
	 	 
	 	 
	/s/ R. Ramin Kamfar
	R. Ramin Kamfar

 

    	 	-19-

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