Document:

LUXEYARD, INC. 2012 EQUITY INCENTIVE
PLAN

 

		1.	Purpose; Eligibility.

 

1.1     General
Purpose. The name of this plan is the Luxeyard, Inc. 2012 Equity Incentive Plan (the "Plan").
The purposes of the Plan are to (a) enable Luxeyard, Inc., a Delaware corporation (the "Company"),
and any Affiliate to attract and retain the types of Employees, Consultants and Directors who will contribute to the Company's
long range success; (b) provide incentives that align the interests of Employees, Consultants and Directors with those of the shareholders
of the Company; and (c) promote the success of the Company's business.

 

1.2     Eligible
Award Recipients. The persons eligible to receive Awards are the Employees, Consultants and Directors of the Company and its
Affiliates and such other individuals designated by the Committee who are reasonably expected to become Employees, Consultants
and Directors after the receipt of Awards.

 

1.3      Available
Awards. Awards that may be granted under the Plan include: (a) Restricted Awards, (b) Performance Share Awards, and (c) Performance
Compensation Awards.

 

		2.	Definitions.

 

"Affiliate" means
a corporation or other entity that, directly or through one or more intermediaries, controls, is controlled by or is under common
control with, the Company.

 

"Applicable
Laws" means the requirements related to or implicated by the administration of the Plan under applicable state
corporate law, United States federal and state securities laws, the Code, any stock exchange or quotation system on which the shares
of Common Stock are listed or quoted, and the applicable laws of any foreign country or jurisdiction where Awards are granted under
the Plan.

 

"Award" means
any right granted under the Plan, including a Restricted Award, a Performance Share Award or a Performance Compensation Award.

 

"Award
Agreement" means a written agreement, contract, certificate or other instrument or document evidencing the
terms and conditions of an individual Award granted under the Plan which may, in the discretion of the Company, be transmitted
electronically to any Participant. Each Award Agreement shall be subject to the terms and conditions of the Plan.

 

    	 

    	 

    

 

"Beneficial
Owner" has the meaning assigned to such term in Rule 13d-3 and Rule 13d-5 under the Exchange Act, except that
in calculating the beneficial ownership of any particular "person" (as that term is used in Section 13(d)(3) of the Exchange
Act), such "person" shall be deemed to have beneficial ownership of all securities that such "person" has the
right to acquire by conversion or exercise of other securities, whether such right is currently exercisable or is exercisable only
after the passage of time. The terms "Beneficially Owns" and "Beneficially Owned" have a corresponding meaning.

 

"Board" means
the Board of Directors of the Company, as constituted at any time.

 

"Cause" means:

 

 With respect to any Employee or Consultant:
(a) If the Employee or Consultant is a party to an employment or service agreement with the Company or its Affiliates and such
agreement provides for a definition of Cause, the definition contained therein; or (b) If no such agreement exists, or if such
agreement does not define Cause: (i) the commission of, or plea of guilty or no contest to, a felony or a crime involving moral
turpitude or the commission of any other act involving willful malfeasance or material fiduciary breach with respect to the Company
or an Affiliate; (ii) conduct that results in or is reasonably likely to result in harm to the reputation or business of the Company
or any of its Affiliates; (iii) gross negligence or willful misconduct with respect to the Company or an Affiliate; or (iv) material
violation of state or federal securities laws.

 

With respect to any Director, a determination
by a majority of the disinterested Board members that the Director has engaged in any of the following: (a) malfeasance in office;
(b) gross misconduct or neglect; (c) false or fraudulent misrepresentation inducing the director's appointment; (d) wilful conversion
of corporate funds; or (e) repeated failure to participate in Board meetings on a regular basis despite having received proper
notice of the meetings in advance.

 

The Committee, in its absolute discretion,
shall determine the effect of all matters and questions relating to whether a Participant has been discharged for Cause.

 

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"Change
in Control" (a) The direct or indirect sale, transfer, conveyance or other disposition (other than by way
of merger or consolidation), in one or a series of related transactions, of all or substantially all of the properties or assets
of the Company and its subsidiaries, taken as a whole, to any Person that is not a subsidiary of the Company; (b) The Incumbent
Directors cease for any reason to constitute at least a majority of the Board; (c) The date which is 10 business days prior to
the consummation of a complete liquidation or dissolution of the Company; (d) The acquisition by any Person of Beneficial Ownership
of 50% or more (on a fully diluted basis) of either (i) the then outstanding shares of Common Stock of the Company, taking into
account as outstanding for this purpose such Common Stock issuable upon the exercise of options or warrants, the conversion of
convertible stock or debt, and the exercise of any similar right to acquire such Common Stock (the "Outstanding Company Common
Stock") or (ii) the combined voting power of the then outstanding voting securities of the Company entitled to vote generally
in the election of directors (the "Outstanding Company Voting Securities"); provided, however, that for purposes of this
Plan, the following acquisitions shall not constitute a Change in Control: (A) any acquisition by the Company or any Affiliate,
(B) any acquisition by any employee benefit plan sponsored or maintained by the Company or any subsidiary, (C) any acquisition
which complies with clauses, (i), (ii) and (iii) of subsection (e) of this definition or (D) in respect of an Award held by a particular
Participant, any acquisition by the Participant or any group of persons including the Participant (or any entity controlled by
the Participant or any group of persons including the Participant); or (e) The consummation of a reorganization, merger, consolidation,
statutory share exchange or similar form of corporate transaction involving the Company that requires the approval of the Company's
shareholders, whether for such transaction or the issuance of securities in the transaction (a "Business Combination"),
unless immediately following such Business Combination: (i) more than 50% of the total voting power of (A) the entity resulting
from such Business Combination (the "Surviving Company"), or (B) if applicable, the ultimate parent entity that directly
or indirectly has beneficial ownership of sufficient voting securities eligible to elect a majority of the members of the board
of directors (or the analogous governing body) of the Surviving Company (the "Parent Company"), is represented by the
Outstanding Company Voting Securities that were outstanding immediately prior to such Business Combination (or, if applicable,
is represented by shares into which the Outstanding Company Voting Securities were converted pursuant to such Business Combination),
and such voting power among the holders thereof is in substantially the same proportion as the voting power of the Outstanding
Company Voting Securities among the holders thereof immediately prior to the Business Combination; (ii) no Person (other than any
employee benefit plan sponsored or maintained by the Surviving Company or the Parent Company) is or becomes the Beneficial Owner,
directly or indirectly, of 50% or more of the total voting power of the outstanding voting securities eligible to elect members
of the board of directors of the Parent Company (or the analogous governing body) (or, if there is no Parent Company, the Surviving
Company); and (iii) at least a majority of the members of the board of directors (or the analogous governing body) of the Parent
Company (or, if there is no Parent Company, the Surviving Company) following the consummation of the Business Combination were
Board members at the time of the Board's approval of the execution of the initial agreement providing for such Business Combination.

 

"Code" means
the Internal Revenue Code of 1986, as it may be amended from time to time. Any reference to a section of the Code shall be deemed
to include a reference to any regulations promulgated thereunder.

 

"Committee" means
a committee of one or more members of the Board appointed by the Board to administer the Plan in accordance with Section
3.3 and Section 3.4.

 

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"Common
Stock" means the common stock, $0.0001 par value per share, of the Company, or such other securities of the
Company as may be designated by the Committee from time to time in substitution thereof.

 

"Company" means
Luxeyard, Inc. a Delaware corporation, and any successor thereto.

 

"Consultant" means
any individual who is engaged by the Company or any Affiliate to render consulting or advisory services.

 

"Continuous
Service" means that the Participant's service with the Company or an Affiliate, whether as an Employee, Consultant
or Director, is not interrupted or terminated. The Participant's Continuous Service shall not be deemed to have terminated merely
because of a change in the capacity in which the Participant renders service to the Company or an Affiliate as an Employee, Consultant
or Director or a change in the entity for which the Participant renders such service, provided that there is no interruption
or termination of the Participant's Continuous Service; provided further that if any Award is subject to Section 409A of
the Code, this sentence shall only be given effect to the extent consistent with Section 409A of the Code. For example, a change
in status from an Employee of the Company to a Director of an Affiliate will not constitute an interruption of Continuous Service.
The Committee or its delegate, in its sole discretion, may determine whether Continuous Service shall be considered interrupted
in the case of any leave of absence approved by that party, including sick leave, military leave or any other personal or family
leave of absence.

 

"Covered
Employee" has the same meaning as set forth in Section 162(m)(3) of the Code, as interpreted by Internal
Revenue Service (www.practicallaw.com/0-382-3556) Notice 2007-49.

 

"Director" means
a member of the Board.

 

"Effective
Date" shall mean the date as of which this Plan is adopted by the Board.

 

"Employee" means
any person, including an Officer or Director, employed by the Company or an Affiliate. Mere service as a Director or payment of
a director's fee by the Company or an Affiliate shall not be sufficient to constitute "employment" by the Company or
an Affiliate.

 

"Exchange
Act" means the Securities Exchange Act of 1934, as amended.

 

"Fair
Market Value" means, as of any date, the value of the Common Stock as determined below. If the Common Stock
is listed on any established stock exchange or a national market system, including without limitation, the New York Stock Exchange
or the NASDAQ Stock Market, the Fair Market Value shall be the closing price of a share of Common Stock (or if no sales were reported
the closing price on the date immediately preceding such date) as quoted on such exchange or system on the day of determination,
as reported in the Wall Street Journal or such other source as the Committee deems reliable. In the absence of an established
market for the Common Stock, the Fair Market Value shall be determined in good faith by the Committee and such determination shall
be conclusive and binding on all persons.

 

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"Grant
Date" means the date on which the Committee adopts a resolution, or takes other appropriate action, expressly
granting an Award to a Participant that specifies the key terms and conditions of the Award or, if a later date is set forth in
such resolution, then such date as is set forth in such resolution.

 

"Incumbent
Directors" means individuals who, on the Effective Date, constitute the Board, provided that any individual
becoming a Director subsequent to the Effective Date whose election or nomination for election to the Board was approved by a vote
of at least two-thirds of the Incumbent Directors then on the Board (either by a specific vote or by approval of the proxy statement
of the Company in which such person is named as a nominee for Director without objection to such nomination) shall be an Incumbent
Director. No individual initially elected or nominated as a director of the Company as a result of an actual or threatened election
contest with respect to Directors or as a result of any other actual or threatened solicitation of proxies by or on behalf of any
person other than the Board shall be an Incumbent Director.

 

"Negative
Discretion" means the discretion authorized by the Plan to be applied by the Committee to eliminate or reduce
the size of a Performance Compensation Award in accordance with Section 7.4(d)(iv) of the Plan; provided, that, the
exercise of such discretion would not cause the Performance Compensation Award to fail to qualify as "performance-based compensation"
under Section 162(m) of the Code.

 

"Non-Employee
Director" means a Director who is a "non-employee director" within the meaning of Rule 16b-3.

 

"Officer" means
a person who is an officer of the Company within the meaning of Section 16 of the Exchange Act and the rules and regulations promulgated
thereunder.

 

"Outside
Director" means a Director who is an "outside director" within the meaning of Section 162(m) of
the Code and Treasury Regulations Section 1.162-27(e)(3) or any successor to such statute and regulation.

 

"Participant" means
an eligible person to whom an Award is granted pursuant to the Plan or, if applicable, such other person who holds an outstanding
Award.

 

"Performance
Compensation Award" means any Award designated by the Committee as a Performance Compensation Award pursuant
to Section 7.4 of the Plan.

 

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"Performance
Criteria" means the criterion or criteria that the Committee shall select for purposes of establishing the
Performance Goal(s) for a Performance Period with respect to any Performance Compensation Award under the Plan. The Performance
Criteria that will be used to establish the Performance Goal(s) shall be based on the attainment of specific levels of performance
of the Company (or Affiliate, division, business unit or operational unit of the Company) and shall be limited to the following: (a)
net earnings or net income (before or after taxes); (b) basic or diluted earnings per share (before or after taxes); (c) net revenue
or net revenue growth; (d) gross revenue; (e) gross profit or gross profit growth; (f) net operating profit (before or after taxes);
(g) return on assets, capital, invested capital, equity, or sales; (h) cash flow (including, but not limited to, operating cash
flow, free cash flow, and cash flow return on capital); (i) earnings before or after taxes, interest, depreciation and/or amortization;
(j) gross or operating margins; (k) improvements in capital structure; (l) budget and expense management; (m) productivity ratios;
(n) economic value added or other value added measurements; (o) share price (including, but not limited to, growth measures and
total shareholder return); (p) expense targets; (q) margins; (r) operating efficiency; (s) working capital targets; (t) enterprise
value; (u) safety record; and (v) completion of acquisitions or business expansion.

 

Any one or more of the Performance Criteria
may be used on an absolute or relative basis to measure the performance of the Company and/or an Affiliate as a whole or any division,
business unit or operational unit of the Company and/or an Affiliate or any combination thereof, as the Committee may deem appropriate,
or as compared to the performance of a group of comparable companies, or published or special index that the Committee, in its
sole discretion, deems appropriate, or the Committee may select Performance Criterion (o) above as compared to various stock market
indices. The Committee also has the authority to provide for accelerated vesting of any Award based on the achievement of Performance
Goals pursuant to the Performance Criteria specified in this paragraph. To the extent required under Section 162(m) of the Code,
the Committee shall, within the first 90 days of a Performance Period (or, if longer or shorter, within the maximum period allowed
under Section 162(m) of the Code), define in an objective fashion the manner of calculating the Performance Criteria it selects
to use for such Performance Period. In the event that applicable tax and/or securities laws change to permit the Committee discretion
to alter the governing Performance Criteria without obtaining shareholder approval of such changes, the Committee shall have sole
discretion to make such changes without obtaining shareholder approval.

 

"Performance
Formula" means, for a Performance Period, the one or more objective formulas applied against the relevant
Performance Goal to determine, with regard to the Performance Compensation Award of a particular Participant, whether all, some
portion but less than all, or none of the Performance Compensation Award has been earned for the Performance Period.

 

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"Performance
Goals" means, for a Performance Period, the one or more goals established by the Committee for the Performance
Period based upon the Performance Criteria. The Committee is authorized at any time during the first 90 days of a Performance Period
(or, if longer or shorter, within the maximum period allowed under Section 162(m) of the Code), or at any time thereafter (but
only to the extent the exercise of such authority after such period would not cause the Performance Compensation Awards granted
to any Participant for the Performance Period to fail to qualify as "performance-based compensation" under Section 162(m)
of the Code), in its sole and absolute discretion, to adjust or modify the calculation of a Performance Goal for such Performance
Period to the extent permitted under Section 162(m) of the Code in order to prevent the dilution or enlargement of the rights of
Participants based on the following events:  (a) asset write-downs; (b) litigation or claim judgments or settlements; (c)
the effect of changes in tax laws, accounting principles, or other laws or regulatory rules affecting reported results; (d) any
reorganization and restructuring programs; (e) extraordinary nonrecurring items as described in Accounting Principles Board Opinion
No. 30 (or any successor or pronouncement thereto) and/or in management's discussion and analysis of financial condition and results
of operations appearing in the Company's annual report to shareholders for the applicable year; (f) acquisitions or divestitures;
(g) any other specific unusual or nonrecurring events, or objectively determinable category thereof; (h) foreign exchange gains
and losses; and (i) a change in the Company's fiscal year.

 

"Performance
Period" means the one or more periods of time not less than one fiscal quarter in duration, as the Committee
may select, over which the attainment of one or more Performance Goals will be measured for the purpose of determining a Participant's
right to and the payment of a Performance Compensation Award.

 

"Performance
Share Award" means any Award granted pursuant to Section 7.3 hereof.

 

"Performance
Share" means the grant of a right to receive a number of actual shares of Common Stock or share units based
upon the performance of the Company during a Performance Period, as determined by the Committee.

 

"Plan" means
this Luxeyard, Inc. 2012 Equity Incentive Plan, as amended and/or amended and restated from time to time.

 

"Restricted
Award" means any Award granted pursuant to Section 7.2(a).

 

"Restricted
Period" has the meaning set forth in Section 7.2(a).

 

"Rule
16b-3" means Rule 16b-3 promulgated under the Exchange Act or any successor to Rule 16b-3, as in effect from
time to time.

 

"Securities
Act" means the Securities Act of 1933, as amended.

 

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		3.	Administration.

 

3.1      Authority
of Committee. The Plan shall be administered by the Committee or, in the Board's sole discretion, by the Board. Subject to
the terms of the Plan, the Committee's charter and Applicable Laws, and in addition to other express powers and authorization conferred
by the Plan, the Committee shall have the authority:

 

(a)      to
construe and interpret the Plan and apply its provisions;

 

(b)     to promulgate,
amend, and rescind rules and regulations relating to the administration of the Plan;

 

(c)     to authorize
any person to execute, on behalf of the Company, any instrument required to carry out the purposes of the Plan;

 

(d)     to delegate
its authority to one or more Officers of the Company with respect to Awards that do not involve Covered Employees or "insiders"
within the meaning of Section 16 of the Exchange Act;

 

(e)     to determine
when Awards are to be granted under the Plan and the applicable Grant Date;

 

(f)     from time
to time to select, subject to the limitations set forth in this Plan, those Participants to whom Awards shall be granted;

 

(g)      to
determine the number of shares of Common Stock to be made subject to each Award;

 

(h)     to prescribe
the terms and conditions of each Award, including, without limitation, the exercise price and medium of payment and vesting provisions,
and to specify the provisions of the Award Agreement relating to such grant;

 

(i)     to determine
the target number of Performance Shares to be granted pursuant to a Performance Share Award, the performance measures that will
be used to establish the performance goals, the performance period(s) and the number of Performance Shares earned by a Participant;

 

(j)     to designate
an Award (including a cash bonus) as a Performance Compensation Award and to select the Performance Criteria that will be used
to establish the Performance Goals;

 

(k)     to amend
any outstanding Awards, including for the purpose of modifying the time or manner of vesting, or the term of any outstanding Award;
provided, however, that if any such amendment impairs a Participant's rights or increases a Participant's obligations under
his or her Award or creates or increases a Participant's federal income tax liability with respect to an Award, such amendment
shall also be subject to the Participant's consent;

 

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(l)     to determine
the duration and purpose of leaves of absences which may be granted to a Participant without constituting termination of their
employment for purposes of the Plan, which periods shall be no shorter than the periods generally applicable to Employees under
the Company's employment policies;

 

(m)     to make
decisions with respect to outstanding Awards that may become necessary upon a change in corporate control or an event that triggers
anti-dilution adjustments;

 

(n)     to interpret,
administer, reconcile any inconsistency in, correct any defect in and/or supply any omission in the Plan and any instrument or
agreement relating to, or Award granted under, the Plan; and

 

(o)     to exercise
discretion to make any and all other determinations which it determines to be necessary or advisable for the administration of
the Plan.

 

The Committee also may modify the purchase
price or the exercise price of any outstanding Award, provided that if the modification effects a repricing, shareholder
approval shall be required before the repricing is effective.

 

3.2      Committee
Decisions Final. All decisions made by the Committee pursuant to the provisions of the Plan shall be final and binding on the
Company and the Participants, unless such decisions are determined by a court having jurisdiction to be arbitrary and capricious.

 

3.3      Delegation.
The Committee, or if no Committee has been appointed, the Board, may delegate administration of the Plan to a committee or committees
of one or more members of the Board, and the term "Committee" shall apply to
any person or persons to whom such authority has been delegated. The Committee shall have the power to delegate to a subcommittee
any of the administrative powers the Committee is authorized to exercise (and references in this Plan to the Board or the Committee
shall thereafter be to the committee or subcommittee), subject, however, to such resolutions, not inconsistent with the provisions
of the Plan, as may be adopted from time to time by the Board. The Board may abolish the Committee at any time and revest in the
Board the administration of the Plan. The members of the Committee shall be appointed by and serve at the pleasure of the Board.
From time to time, the Board may increase or decrease the size of the Committee, add additional members to, remove members (with
or without cause) from, appoint new members in substitution therefor, and fill vacancies, however caused, in the Committee. The
Committee shall act pursuant to a vote of the majority of its members or, in the case of a Committee comprised of only two members,
the unanimous consent of its members, whether present or not, or by the written consent of the majority of its members and minutes
shall be kept of all of its meetings and copies thereof shall be provided to the Board. Subject to the limitations prescribed by
the Plan and the Board, the Committee may establish and follow such rules and regulations for the conduct of its business as it
may determine to be advisable.

 

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3.4      Committee
Composition. Except as otherwise determined by the Board, the Committee shall consist solely of two or more Non-Employee Directors
who are also Outside Directors. The Board shall have discretion to determine whether or not it intends to comply with the exemption
requirements of Rule 16b-3 and/or Section 162(m) of the Code. However, if the Board intends to satisfy such exemption requirements,
with respect to Awards to any Covered Employee and with respect to any insider subject to Section 16 of the Exchange Act, the Committee
shall be a compensation committee of the Board that at all times consists solely of two or more Non-Employee Directors who are
also Outside Directors. Within the scope of such authority, the Board or the Committee may (a) delegate to a committee of one or
more members of the Board who are not Outside Directors the authority to grant Awards to eligible persons who are either (i) not
then Covered Employees and are not expected to be Covered Employees at the time of recognition of income resulting from such Award
or (ii) not persons with respect to whom the Company wishes to comply with Section 162(m) of the Code or (b) delegate to a committee
of one or more members of the Board who are not Non-Employee Directors the authority to grant Awards to eligible persons who are
not then subject to Section 16 of the Exchange Act. Nothing herein shall create an inference that an Award is not validly granted
under the Plan in the event Awards are granted under the Plan by a compensation committee of the Board that does not at all times
consist solely of two or more Non-Employee Directors who are also Outside Directors.

 

3.5      Indemnification.
In addition to such other rights of indemnification as they may have as Directors or members of the Committee, and to the extent
allowed by Applicable Laws, the Committee shall be indemnified by the Company against the reasonable expenses, including attorney's
fees, actually incurred in connection with any action, suit or proceeding or in connection with any appeal therein, to which the
Committee may be party by reason of any action taken or failure to act under or in connection with the Plan or any Award granted
under the Plan, and against all amounts paid by the Committee in settlement thereof (provided, however, that the settlement
has been approved by the Company, which approval shall not be unreasonably withheld) or paid by the Committee in satisfaction of
a judgment in any such action, suit or proceeding, except in relation to matters as to which it shall be adjudged in such action,
suit or proceeding that such Committee did not act in good faith and in a manner which such person reasonably believed to be in
the best interests of the Company, or in the case of a criminal proceeding, had no reason to believe that the conduct complained
of was unlawful; provided, however, that within 60 days after institution of any such action, suit or proceeding, such Committee
shall, in writing, offer the Company the opportunity at its own expense to handle and defend such action, suit or proceeding.

 

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		4.	Shares Subject to the Plan.

 

4.1      Subject
to adjustment in accordance with Section 11, a total of 10,000,000 shares of Common Stock shall be available
for the grant of Awards under the Plan. During the terms of the Awards, the Company shall keep available at all times the
number of shares of Common Stock required to satisfy such Awards.

 

4.2      Shares
of Common Stock available for distribution under the Plan may consist, in whole or in part, of authorized and unissued shares,
treasury shares or shares reacquired by the Company in any manner.

 

4.3      Any
shares of Common Stock subject to an Award that is canceled, forfeited or expires prior to exercise or realization, either in full
or in part, shall again become available for issuance under the Plan. Notwithstanding anything to the contrary contained herein:
shares subject to an Award under the Plan shall not again be made available for issuance or delivery under the Plan if such shares
are delivered or withheld by the Company to satisfy any tax withholding obligation.

 

		5.	Eligibility.

 

5.1      Eligibility
for Specific Awards. Awards may be granted to Employees, Consultants and Directors and those individuals whom the Committee
determines are reasonably expected to become Employees, Consultants and Directors following the Grant Date.

 

		6.	Intentionally left blank.

 

		7.	Provisions of Awards.

 

7.1      Intentionally
left blank.  

 

7.2      Restricted
Awards.  

 

(a)     General

 

A Restricted Award is an Award of actual shares
of Common Stock ("Restricted Stock") or hypothetical Common Stock units ("Restricted
Stock Units") having a value equal to the Fair Market Value of an identical number of shares of Common Stock, which
may, but need not, provide that such Restricted Award may not be sold, assigned, transferred or otherwise disposed of, pledged
or hypothecated as collateral for a loan or as security for the performance of any obligation or for any other purpose for such
period (the "Restricted Period") as the Committee shall determine. Each Restricted
Award granted under the Plan shall be evidenced by an Award Agreement. Each Restricted Award so granted shall be subject to the
conditions set forth in this Section 7.2, and to such other conditions not inconsistent with the Plan as may be reflected in the
applicable Award Agreement.

 

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(b)     Restricted
Stock and Restricted Stock Units

 

		(i)	Each Participant granted Restricted Stock shall execute and deliver to the Company an Award Agreement with respect to the Restricted
Stock setting forth the restrictions and other terms and conditions applicable to such Restricted Stock. If the Committee determines
that the Restricted Stock shall be held by the Company or in escrow rather than delivered to the Participant pending the release
of the applicable restrictions, the Committee may require the Participant to additionally execute and deliver to the Company (A)
an escrow agreement satisfactory to the Committee, if applicable and (B) the appropriate blank stock power with respect to the
Restricted Stock covered by such agreement. If a Participant fails to execute an agreement evidencing an Award of Restricted Stock
and, if applicable, an escrow agreement and stock power, the Award shall be null and void. Subject to the restrictions set forth
in the Award, the Participant generally shall have the rights and privileges of a shareholder as to such Restricted Stock, including
the right to vote such Restricted Stock and the right to receive dividends; provided that, any cash dividends and stock
dividends with respect to the Restricted Stock shall be withheld by the Company for the Participant's account, and interest may
be credited on the amount of the cash dividends withheld at a rate and subject to such terms as determined by the Committee. The
cash dividends or stock dividends so withheld by the Committee and attributable to any particular share of Restricted Stock (and
earnings thereon, if applicable) shall be distributed to the Participant in cash or, at the discretion of the Committee, in shares
of Common Stock having a Fair Market Value equal to the amount of such dividends, if applicable, upon the release of restrictions
on such share and, if such share is forfeited, the Participant shall have no right to such dividends.

 

		(ii)	The terms and conditions of a grant of Restricted Stock Units shall be reflected in an Award Agreement. No shares of Common
Stock shall be issued at the time a Restricted Stock Unit is granted, and the Company will not be required to set aside a fund
for the payment of any such Award. A Participant shall have no voting rights with respect to any Restricted Stock Units granted
hereunder. At the discretion of the Committee, each Restricted Stock Unit (representing one share of Common Stock) may be credited
with cash and stock dividends paid by the Company in respect of one share of Common Stock ("Dividend
Equivalents"). Dividend Equivalents shall be withheld by the Company for the Participant's account, and interest
may be credited on the amount of cash Dividend Equivalents withheld at a rate and subject to such terms as determined by the Committee.
Dividend Equivalents credited to a Participant's account and attributable to any particular Restricted Stock Unit (and earnings
thereon, if applicable) shall be distributed in cash or, at the discretion of the Committee, in shares of Common Stock having a
Fair Market Value equal to the amount of such Dividend Equivalents and earnings, if applicable, to the Participant upon settlement
of such Restricted Stock Unit and, if such Restricted Stock Unit is forfeited, the Participant shall have no right to such Dividend
Equivalents.

 

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(c)     Restrictions

 

		(i)	Restricted Stock awarded to a Participant shall be subject to the following restrictions until the expiration of the Restricted
Period, and to such other terms and conditions as may be set forth in the applicable Award Agreement: (A) if an escrow arrangement
is used, the Participant shall not be entitled to delivery of the stock certificate; (B) the shares shall be subject to the restrictions
on transferability set forth in the Award Agreement; (C) the shares shall be subject to forfeiture to the extent provided in the
applicable Award Agreement; and (D) to the extent such shares are forfeited, the stock certificates shall be returned to the Company,
and all rights of the Participant to such shares and as a shareholder with respect to such shares shall terminate without further
obligation on the part of the Company.

 

		(ii)	Restricted Stock Units awarded to any Participant shall be subject to (A) forfeiture until the expiration of the Restricted
Period, and satisfaction of any applicable Performance Goals during such period, to the extent provided in the applicable Award
Agreement, and to the extent such Restricted Stock Units are forfeited, all rights of the Participant to such Restricted Stock
Units shall terminate without further obligation on the part of the Company and (B) such other terms and conditions as may be set
forth in the applicable Award Agreement.

 

		(iii)	The Committee shall have the authority to remove any or all of the restrictions on the Restricted Stock and Restricted Stock
Units whenever it may determine that, by reason of changes in Applicable Laws or other changes in circumstances arising after the
date the Restricted Stock or Restricted Stock Units are granted, such action is appropriate.

 

    	13

    	 

    

 

(d)     Restricted
Period

 

With respect to Restricted Awards, the Restricted
Period shall commence on the Grant Date and end at the time or times set forth on a schedule established by the Committee in the
applicable Award Agreement.

 

No Restricted Award may be granted or settled
for a fraction of a share of Common Stock. The Committee may, but shall not be required to, provide for an acceleration of vesting
in the terms of any Award Agreement upon the occurrence of a specified event.

 

(e)     Delivery
of Restricted Stock and Settlement of Restricted Stock Units

 

Upon the expiration of the Restricted
Period with respect to any shares of Restricted Stock, the restrictions set forth in Section 7.2(c) and the
applicable Award Agreement shall be of no further force or effect with respect to such shares, except as set forth in the
applicable Award Agreement. If an escrow arrangement is used, upon such expiration, the Company shall deliver to the
Participant, or his or her beneficiary, without charge, the stock certificate evidencing the shares of Restricted Stock which
have not then been forfeited and with respect to which the Restricted Period has expired (to the nearest full share) and any
cash dividends or stock dividends credited to the Participant's account with respect to such Restricted Stock and the
interest thereon, if any. Upon the expiration of the Restricted Period with respect to any outstanding Restricted Stock
Units, the Company shall deliver to the Participant, or his or her beneficiary, without charge, one share of Common Stock for
each such outstanding Restricted Stock Unit ("Vested Unit") and cash equal
to any Dividend Equivalents credited with respect to each such Vested Unit in accordance with Section 7.2(b)(ii) hereof
and the interest thereon or, at the discretion of the Committee, in shares of Common Stock having a Fair Market Value equal
to such Dividend Equivalents and the interest thereon, if any; provided, however, that, if explicitly provided in the
applicable Award Agreement, the Committee may, in its sole discretion, elect to pay cash or part cash and part Common Stock
in lieu of delivering only shares of Common Stock for Vested Units. If a cash payment is made in lieu of delivering shares of
Common Stock, the amount of such payment shall be equal to the Fair Market Value of the Common Stock as of the date on which
the Restricted Period lapsed with respect to each Vested Unit.

 

(f)     Stock
Restrictions

 

Each certificate representing Restricted Stock
awarded under the Plan shall bear a legend in such form as the Company deems appropriate.

 

7.3      Performance
Share Awards.  

 

(a)     Grant
of Performance Share Awards

 

Each Performance Share Award granted under
the Plan shall be evidenced by an Award Agreement. Each Performance Share Award so granted shall be subject to the conditions set
forth in this Section 7.3, and to such other conditions not inconsistent with the Plan as may be reflected in the applicable Award
Agreement. The Committee shall have the discretion to determine: (i) the number of shares of Common Stock or stock-denominated
units subject to a Performance Share Award granted to any Participant; (ii) the performance period applicable to any Award; (iii)
the conditions that must be satisfied for a Participant to earn an Award; and (iv) the other terms, conditions and restrictions
of the Award.

 

    	14

    	 

    
 

(b)     Earning
Performance Share Awards

 

The number of Performance Shares earned by
a Participant will depend on the extent to which the performance goals established by the Committee are attained within the applicable
Performance Period, as determined by the Committee. No payout shall be made with respect to any Performance Share Award except
upon written certification by the Committee that the minimum threshold performance goal(s) have been achieved.

 

7.4      Performance
Compensation Awards.  

 

(a)     General

 

The Committee shall have the authority, at
the time of grant of any Award described in this Plan, to designate such Award as a Performance Compensation Award in order to
qualify such Award as "performance-based compensation" under Section 162(m) of the Code. In addition, the Committee shall
have the authority to make an Award of a cash bonus to any Participant and designate such Award as a Performance Compensation Award
in order to qualify such Award as "performance-based compensation" under Section 162(m) of the Code.

 

(b)     Eligibility

 

The Committee will, in its sole discretion,
designate within the first 90 days of a Performance Period (or, if longer or shorter, within the maximum period allowed under Section
162(m) of the Code) which Participants will be eligible to receive Performance Compensation Awards in respect of such Performance
Period. However, designation of a Participant eligible to receive an Award hereunder for a Performance Period shall not in any
manner entitle the Participant to receive payment in respect of any Performance Compensation Award for such Performance Period.
The determination as to whether or not such Participant becomes entitled to payment in respect of any Performance Compensation
Award shall be decided solely in accordance with the provisions of this Section 7.4. Moreover, designation of a Participant eligible
to receive an Award hereunder for a particular Performance Period shall not require designation of such Participant eligible to
receive an Award hereunder in any subsequent Performance Period and designation of one person as a Participant eligible to receive
an Award hereunder shall not require designation of any other person as a Participant eligible to receive an Award hereunder in
such period or in any other period.

 

    	15

    	 

    

 

(c)     Discretion
of Committee with Respect to Performance Compensation Awards

 

With regard to a particular Performance Period,
the Committee shall have full discretion to select the length of such Performance Period (provided any such Performance Period
shall be not less than one fiscal quarter in duration), the type(s) of Performance Compensation Awards to be issued, the Performance
Criteria that will be used to establish the Performance Goal(s), the kind(s) and/or level(s) of the Performance Goal(s) that is
(are) to apply to the Company and the Performance Formula. Within the first 90 days of a Performance Period (or, if longer or shorter,
within the maximum period allowed under Section 162(m) of the Code), the Committee shall, with regard to the Performance Compensation
Awards to be issued for such Performance Period, exercise its discretion with respect to each of the matters enumerated in the
immediately preceding sentence of this Section 7.4(c) and record the same in writing.

 

(d)     Payment
of Performance Compensation Awards

 

(i)     Condition
to Receipt of Payment

Unless otherwise provided in the applicable Award
Agreement, a Participant must be employed by the Company on the last day of a Performance Period to be eligible for payment in
respect of a Performance Compensation Award for such Performance Period.

 

(ii)    Limitation

A Participant shall be eligible to receive payment
in respect of a Performance Compensation Award only to the extent that: (A) the Performance Goals for such period are achieved;
and (B) the Performance Formula as applied against such Performance Goals determines that all or some portion of such Participant's
Performance Compensation Award has been earned for the Performance Period.

 

(iii)   Certification

Following the completion of a Performance Period,
the Committee shall review and certify in writing whether, and to what extent, the Performance Goals for the Performance Period
have been achieved and, if so, calculate and certify in writing the amount of the Performance Compensation Awards earned for the
period based upon the Performance Formula. The Committee shall then determine the actual size of each Participant's Performance
Compensation Award for the Performance Period and, in so doing, may apply Negative Discretion in accordance with Section 7.4(d)(iv)
hereof, if and when it deems appropriate.

 

    	16

    	 

    

 

(iv)   Use
of Discretion

In determining the actual size of an individual
Performance Compensation Award for a Performance Period, the Committee may reduce or eliminate the amount of the Performance Compensation
Award earned under the Performance Formula in the Performance Period through the use of Negative Discretion if, in its sole judgment,
such reduction or elimination is appropriate. The Committee shall not have the discretion to (A) grant or provide payment in respect
of Performance Compensation Awards for a Performance Period if the Performance Goals for such Performance Period have not been
attained or (B) increase a Performance Compensation Award above the maximum amount payable under Section 7.4(d)(vi) of the Plan.

 

(v)    Timing
of Award Payments

Performance Compensation Awards granted for a Performance
Period shall be paid to Participants as soon as administratively practicable following completion of the certifications required
by this Section 7.4 but in no event later than 2 1/2 months following the end of the fiscal year during which the Performance Period
is completed.

 

(vi)   Maximum
Award Payable

Notwithstanding any provision contained in
this Plan to the contrary, the maximum Performance Compensation Award payable to any one Participant under the Plan for a
Performance Period is 1,000,000 shares of Common Stock or, in the event such Performance Compensation Award is paid in cash,
the equivalent cash value thereof on the first or last day of the Performance Period to which such Award relates, as
determined by the Committee. The maximum amount that can be paid in any calendar year to any Participant pursuant to a cash
bonus Award described in the last sentence of Section 7.4(a) shall be $150,000. Furthermore, any Performance
Compensation Award that has been deferred shall not (between the date as of which the Award is deferred and the payment date)
increase (A) with respect to a Performance Compensation Award that is payable in cash, by a measuring factor for each fiscal
year greater than a reasonable rate of interest set by the Committee or (B) with respect to a Performance Compensation Award
that is payable in shares of Common Stock, by an amount greater than the appreciation of a share of Common Stock from the
date such Award is deferred to the payment date.

 

    	17

    	 

    

 

8.     Securities
Law Compliance. Each Award Agreement shall provide that no shares of Common Stock shall be purchased or sold thereunder unless
and until (a) any then applicable requirements of state or federal laws and regulatory agencies have been fully complied with to
the satisfaction of the Company and its counsel and (b) if required to do so by the Company, the Participant has executed and delivered
to the Company a letter of investment intent in such form and containing such provisions as the Committee may require. The Company
shall use reasonable efforts to seek to obtain from each regulatory commission or agency having jurisdiction over the Plan such
authority as may be required to grant Awards and to issue and sell shares of Common Stock upon exercise of the Awards; provided,
however, that this undertaking shall not require the Company to register under the Securities Act the Plan, any Award or any
Common Stock issued or issuable pursuant to any such Award. If, after reasonable efforts, the Company is unable to obtain from
any such regulatory commission or agency the authority which counsel for the Company deems necessary for the lawful issuance and
sale of Common Stock under the Plan, the Company shall be relieved from any liability for failure to issue and sell Common Stock
upon exercise of such Awards unless and until such authority is obtained.

 

9.     Use
of Proceeds from Stock. Proceeds from the sale of Common Stock pursuant to Awards, or upon exercise thereof, shall constitute
general funds of the Company.

 

10.   Miscellaneous.

 

10.1     Acceleration
of Exercisability and Vesting. The Committee shall have the power to accelerate the time at which an Award may first be exercised
or the time during which an Award or any part thereof will vest in accordance with the Plan, notwithstanding the provisions in
the Award stating the time at which it may first be exercised or the time during which it will vest.

 

10.2     Shareholder
Rights. Except as provided in the Plan or an Award Agreement, no Participant shall be deemed to be the holder of, or to have
any of the rights of a holder with respect to, any shares of Common Stock subject to such Award unless and until such Participant
has satisfied all requirements for exercise of the Award pursuant to its terms and no adjustment shall be made for dividends (ordinary
or extraordinary, whether in cash, securities or other property) or distributions of other rights for which the record date is
prior to the date such Common Stock certificate is issued, except as provided in Section 11 hereof.

 

    	18

    	 

    

 

10.3     No
Employment or Other Service Rights. Nothing in the Plan or any instrument executed or Award granted pursuant thereto shall
confer upon any Participant any right to continue to serve the Company or an Affiliate in the capacity in effect at the time the
Award was granted or shall affect the right of the Company or an Affiliate to terminate (a) the employment of an Employee with
or without notice and with or without Cause or (b) the service of a Director pursuant to the By-laws of the Company or an Affiliate,
and any applicable provisions of the corporate law of the state in which the Company or the Affiliate is incorporated, as the case
may be.

 

10.4     Transfer;
Approved Leave of Absence. For purposes of the Plan, no termination of employment by an Employee shall be deemed to result
from either (a) a transfer to the employment of the Company from an Affiliate or from the Company to an Affiliate, or from one
Affiliate to another, or (b) an approved leave of absence for military service or sickness, or for any other purpose approved by
the Company, if the Employee's right to reemployment is guaranteed either by a statute or by contract or under the policy pursuant
to which the leave of absence was granted or if the Committee otherwise so provides in writing, in either case, except to the extent
inconsistent with Section 409A of the Code if the applicable Award is subject thereto.

 

10.5     Withholding
Obligations. To the extent provided by the terms of an Award Agreement and subject to the discretion of the Committee, the
Participant may satisfy any federal, state or local tax withholding obligation relating to the exercise or acquisition of Common
Stock under an Award by any of the following means (in addition to the Company's right to withhold from any compensation paid to
the Participant by the Company) or by a combination of such means: (a) tendering a cash payment; (b) authorizing the Company to
withhold shares of Common Stock from the shares of Common Stock otherwise issuable to the Participant as a result of the exercise
or acquisition of Common Stock under the Award, provided, however, that no shares of Common Stock are withheld with a value
exceeding the minimum amount of tax required to be withheld by law; or (c) delivering to the Company previously owned and unencumbered
shares of Common Stock of the Company.

 

11.     Adjustments
Upon Changes in Stock. In the event of changes in the outstanding Common Stock or in the capital structure of the
Company by reason of any stock or extraordinary cash dividend, stock split, reverse stock split, an extraordinary corporate
transaction such as any recapitalization, reorganization, merger, consolidation, combination, exchange, or other relevant
change in capitalization occurring after the Grant Date of any Award, Awards granted under the Plan and any Award Agreements,
the maximum number of shares of Common Stock subject to all Awards stated in Section 4 and the maximum number
of shares of Common Stock with respect to which any one person may be granted Awards during any period stated in Section 4 and
Section 7.4(d)(vi) will be equitably adjusted or substituted, as to the number, price or kind of a share of Common Stock or
other consideration subject to such Awards to the extent necessary to preserve the economic intent of such Award. Any
adjustments made under this Section 11 shall be made in a manner which does not adversely affect the exemption provided
pursuant to Rule 16b-3 under the Exchange Act. Further, with respect to Awards intended to qualify as "performance-based
compensation" under Section 162(m) of the Code, any adjustments or substitutions will not cause the Company to be denied
a tax deduction on account of Section 162(m) of the Code. The Company shall give each Participant notice of an adjustment
hereunder and, upon notice, such adjustment shall be conclusive and binding for all purposes.

 

    	19

    	 

    

 

12.     Effect
of Change in Control.

 

12.1     Unless
otherwise provided in an Award Agreement, notwithstanding any provision of the Plan to the contrary:

 

(a)      With respect
to Performance Compensation Awards, in the event of a Change in Control, all incomplete Performance Periods in respect of such
Award in effect on the date the Change in Control occurs shall end on the date of such change and the Committee shall (i) determine
the extent to which Performance Goals with respect to each such Performance Period have been met based upon such audited or unaudited
financial information then available as it deems relevant and (ii) cause to be paid to the applicable Participant partial or full
Awards with respect to Performance Goals for each such Performance Period based upon the Committee's determination of the degree
of attainment of Performance Goals or, if not determinable, assuming that the applicable "target" levels of performance
have been attained, or on such other basis determined by the Committee.

 

To the extent practicable, any actions taken
by the Committee under the immediately preceding clauses (a) shall occur in a manner and at a time which allows affected Participants
the ability to participate in the Change in Control with respect to the shares of Common Stock subject to their Awards.

 

12.2     In addition,
in the event of a Change in Control, the Committee may in its discretion and upon at least 10 days' advance notice to the affected
persons, cancel any outstanding Awards and pay to the holders thereof, in cash or stock, or any combination thereof, the value
of such Awards based upon the price per share of Common Stock received or to be received by other shareholders of the Company in
the event.

 

12.3     The obligations
of the Company under the Plan shall be binding upon any successor corporation or organization resulting from the merger, consolidation
or other reorganization of the Company, or upon any successor corporation or organization succeeding to all or substantially all
of the assets and business of the Company and its Affiliates, taken as a whole.

 

13.     Amendment
of the Plan and Awards.

 

13.1     Amendment
of Plan. The Board at any time, and from time to time, may amend or terminate the Plan. However, except as provided in Section 11 relating
to adjustments upon changes in Common Stock and Section 13.3, no amendment shall be effective unless approved
by the shareholders of the Company to the extent shareholder approval is necessary to satisfy any Applicable Laws. At the
time of such amendment, the Board shall determine, upon advice from counsel, whether such amendment will be contingent on
shareholder approval.

 

    	20

    	 

    

 

13.2     Shareholder
Approval. The Board may, in its sole discretion, submit any other amendment to the Plan for shareholder approval, including,
but not limited to, amendments to the Plan intended to satisfy the requirements of Section 162(m) of the Code and the regulations
thereunder regarding the exclusion of performance-based compensation from the limit on corporate deductibility of compensation
paid to certain executive officers.

 

13.3     Intentionally
left blank.

 

13.4     No
Impairment of Rights. Rights under any Award granted before amendment of the Plan shall not be impaired by any amendment of
the Plan unless (a) the Company requests the consent of the Participant and (b) the Participant consents in writing.

 

13.5     Amendment
of Awards. The Committee at any time, and from time to time, may amend the terms of any one or more Awards; provided, however,
that the Committee may not affect any amendment which would otherwise constitute an impairment of the rights under any Award unless
(a) the Company requests the consent of the Participant and (b) the Participant consents in writing.

 

14.     General
Provisions.

 

14.1     Forfeiture
Events. The Committee may specify in an Award Agreement that the Participant's rights, payments and benefits with respect to
an Award shall be subject to reduction, cancellation, forfeiture or recoupment upon the occurrence of certain events, in addition
to applicable vesting conditions of an Award. Such events may include, without limitation, breach of non-competition, non-solicitation,
confidentiality, or other restrictive covenants that are contained in the Award Agreement or otherwise applicable to the Participant,
a termination of the Participant's Continuous Service for Cause, or other conduct by the Participant that is detrimental to the
business or reputation of the Company and/or its Affiliates.

 

14.2     Other
Compensation Arrangements. Nothing contained in this Plan shall prevent the Board from adopting other or additional compensation
arrangements, subject to shareholder approval if such approval is required; and such arrangements may be either generally applicable
or applicable only in specific cases.

 

14.3     Sub-plans.
The Committee may from time to time establish sub-plans under the Plan for purposes of satisfying blue sky, securities, tax or
other laws of various jurisdictions in which the Company intends to grant Awards. Any sub-plans shall contain such limitations
and other terms and conditions as the Committee determines are necessary or desirable. All sub-plans shall be deemed a part of
the Plan, but each sub-plan shall apply only to the Participants in the jurisdiction for which the sub-plan was designed.

 

    	21

    	 

    
 

14.4     Deferral
of Awards. The Committee may establish one or more programs under the Plan to permit selected Participants the opportunity
to elect to defer receipt of consideration upon exercise of an Award, satisfaction of performance criteria, or other event that
absent the election would entitle the Participant to payment or receipt of shares of Common Stock or other consideration under
an Award. The Committee may establish the election procedures, the timing of such elections, the mechanisms for payments of, and
accrual of interest or other earnings, if any, on amounts, shares or other consideration so deferred, and such other terms, conditions,
rules and procedures that the Committee deems advisable for the administration of any such deferral program.

 

14.5     Unfunded
Plan. The Plan shall be unfunded. Neither the Company, the Board nor the Committee shall be required to establish any special
or separate fund or to segregate any assets to assure the performance of its obligations under the Plan.

 

14.6     Recapitalizations.
Each Award Agreement shall contain provisions required to reflect the provisions of Section 11.

 

14.7     Delivery.
Upon exercise of a right granted under this Plan, the Company shall issue Common Stock or pay any amounts due within a reasonable
period of time thereafter. Subject to any statutory or regulatory obligations the Company may otherwise have, for purposes of this
Plan, 30 days shall be considered a reasonable period of time.

 

14.8     No
Fractional Shares. No fractional shares of Common Stock shall be issued or delivered pursuant to the Plan. The Committee shall
determine whether cash, additional Awards or other securities or property shall be issued or paid in lieu of fractional shares
of Common Stock or whether any fractional shares should be rounded, forfeited or otherwise eliminated.

 

14.9     Other
Provisions. The Award Agreements authorized under the Plan may contain such other provisions not inconsistent with this Plan,
including, without limitation, restrictions upon the exercise of the Awards, as the Committee may deem advisable.

 

    	22

    	 

    

 

14.10     Section
409A. The Plan is intended to comply with Section 409A of the Code to the extent subject thereto, and, accordingly, to the
maximum extent permitted, the Plan shall be interpreted and administered to be in compliance therewith. Any payments described
in the Plan that are due within the "short-term deferral period" as defined in Section 409A of the Code shall not be
treated as deferred compensation unless Applicable Laws require otherwise. Notwithstanding anything to the contrary in the Plan,
to the extent required to avoid accelerated taxation and tax penalties under Section 409A of the Code, amounts that would otherwise
be payable and benefits that would otherwise be provided pursuant to the Plan during the six (6) month period immediately following
the Participant's termination of Continuous Service shall instead be paid on the first payroll date after the six-month anniversary
of the Participant's separation from service (or the Participant's death, if earlier). Notwithstanding the foregoing, neither the
Company nor the Committee shall have any obligation to take any action to prevent the assessment of any excise tax or penalty on
any Participant under Section 409A of the Code and neither the Company nor the Committee will have any liability to any Participant
for such tax or penalty.

 

14.11     Section
16. It is the intent of the Company that the Plan satisfy, and be interpreted in a manner that satisfies, the applicable requirements
of Rule 16b-3 as promulgated under Section 16 of the Exchange Act so that Participants will be entitled to the benefit of Rule
16b-3, or any other rule promulgated under Section 16 of the Exchange Act, and will not be subject to short-swing liability under
Section 16 of the Exchange Act. Accordingly, if the operation of any provision of the Plan would conflict with the intent expressed
in this Section 14.11, such provision to the extent possible shall be interpreted and/or deemed amended so as to avoid such conflict.

 

14.12     Section
162(m). To the extent the Committee issues any Award that is intended to be exempt from the deduction limitation of Section
162(m) of the Code, the Committee may, without shareholder or grantee approval, amend the Plan or the relevant Award Agreement
retroactively or prospectively to the extent it determines necessary in order to comply with any subsequent clarification of Section
162(m) of the Code required to preserve the Company's federal income tax deduction for compensation paid pursuant to any such Award.

 

14.13     Beneficiary
Designation. Each Participant under the Plan may from time to time name any beneficiary or beneficiaries by whom any right
under the Plan is to be exercised in case of such Participant's death. Each designation will revoke all prior designations by the
same Participant, shall be in a form reasonably prescribed by the Committee and shall be effective only when filed by the Participant
in writing with the Company during the Participant's lifetime.

 

14.14     Expenses.
The costs of administering the Plan shall be paid by the Company.

 

14.15     Severability.
If any of the provisions of the Plan or any Award Agreement is held to be invalid, illegal or unenforceable, whether in whole or
in part, such provision shall be deemed modified to the extent, but only to the extent, of such invalidity, illegality or unenforceability
and the remaining provisions shall not be affected thereby.

 

    	23

    	 

    

 

14.16     Plan
Headings. The headings in the Plan are for purposes of convenience only and are not intended to define or limit the construction
of the provisions hereof.

 

14.17     Non-Uniform
Treatment. The Committee's determinations under the Plan need not be uniform and may be made by it selectively among persons
who are eligible to receive, or actually receive, Awards. Without limiting the generality of the foregoing, the Committee shall
be entitled to make non-uniform and selective determinations, amendments and adjustments, and to enter into non-uniform and selective
Award Agreements.

 

15.     Effective
Date of Plan. The Plan shall become effective as of the Effective Date, but no Award shall be exercised (or, in the case of
a stock Award, shall be granted) unless and until the Plan has been approved by the shareholders of the Company, which approval
shall be within twelve (12) months before or after the date the Plan is adopted by the Board.

 

16.     Termination
or Suspension of the Plan. The Plan shall terminate automatically on October 12, 2013. No Award shall be granted
pursuant to the Plan after such date, but Awards theretofore granted may extend beyond that date. The Board may suspend or
terminate the Plan at any earlier date pursuant to Section 13.1 hereof. No Awards may be granted under the Plan
while the Plan is suspended or after it is terminated. Unless the Company determines to submit Section 7.4 of
the Plan and the definition of "Performance Goal" and "Performance Criteria" to the Company's
shareholders at the first shareholder meeting that occurs in the fifth year following the year in which the Plan was last
approved by shareholders (or any earlier meeting designated by the Board), in accordance with the requirements of Section
162(m) of the Code, and such shareholder approval is obtained, then no further Performance Compensation Awards shall be made
to Covered Employees under Section 7.4 after the date of such annual meeting, but the Plan may continue in
effect for Awards to Participants not in accordance with Section 162(m) of the Code.

 

17.     Choice
of Law. The law of the State of Delaware shall govern all questions concerning the construction, validity and interpretation
of this Plan, without regard to such state's conflict of law rules.

 

As adopted by the Board of Directors of
Luxeyard, Inc. on October 13, 2012.

 

    	24SECOND AMENDED AND RESTATED ADVISORY
AGREEMENT

 

AMONG

 

BLUEROCK ENHANCED MULTIFAMILY TRUST,
INC.,

BLUEROCK ENHANCED
MULTIFAMILY HOLDINGS, LP,

AND BLUEROCK ENHANCED
MULTIFAMILY ADVISOR, LLC

 

 

 

 

	 	 
	TABLE OF CONTENTS	 
	1. Definitions 	1 
	2. Appointment 	7 
	3. Duties of the Advisor 	7 
	4. Authority of Advisor 	10 
	5. Bank Accounts 	10 
	6. Records; Access 	11 
	7. Limitations on Activities 	11 
	8. Relationship with Director 	11 
	9. Fees 	11 
	10. Expenses 	13 
	11. Other Services 	14 
	12. Reimbursement to the Advisor 	15 
	13. Business Combination 	15 
	14. Other Activities of the Advisor 	16 
	15. The Bluerock Name 	16 
	16. Term of Agreement 	17 
	17. Termination by the Parties 	17 
	18. Assignment to an Affiliate 	17 
	19. Payments to and Duties of Advisor Upon Termination 	17 
	20. Indemnification by the Company and the Operating Partnership 	18 
	21. Indemnification by Advisor 	19 
	22. Nonsolicitation 	19 
	23. Notices 	19 
	24. Modification 	20 
	25. Severability 	20 
	26. Construction 	20 
	27. Entire Agreement 	20 
	28. Indulgences, Not Waivers 	21 
	29. Gender 	21 
	30 . Titles Not to Affect Interpretation 	21 
	31. Execution in Counterparts 	21 

 

 

 

 

    	1

    	 

    
 

 

SECOND AMENDED AND RESTATED ADVISORY
AGREEMENT

 

     THIS SECOND AMENDED AND RESTATED
ADVISORY AGREEMENT (this Agreement”), dated as of the 17th day of October, 2012, with an effective date of September
26, 2012 (the Effective Date ”), is entered into by and among Bluerock Enhanced Multifamily Trust, Inc., a Maryland
corporation (the  Company ”), Bluerock Enhanced Multifamily Holdings, L.P., a Delaware limited partnership (the
Operating Partnership ”), and Bluerock Enhanced Multifamily Advisor, LLC, a Delaware limited liability company (the 
Advisor ”). Capitalized terms used herein shall have the meanings ascribed to them in Section 1 below.

 

W I T N E S S E T H

 

     WHEREAS, the Company and the Advisor
previously entered into that certain Advisory Agreement dated October 15, 2009, as amended and restated pursuant to that certain
Amended and Restated Advisory Agreement dated March 30, 2011;

 

     WHEREAS, the Company qualified as a REIT
beginning with its taxable year ended December 31, 2010, and plans to continue to invest its funds in investments permitted by
the terms of Sections 856 through 860 of the Code;

 

     WHEREAS, the Company is the general
partner, and its wholly owned subsidiary, Bluerock REIT Holdings, LLC, is the sole limited partner of the Operating Partnership,
and the Company intends to conduct all of its business and make all Investments through the Operating Partnership;

 

     WHEREAS, the Company and the Operating
Partnership desire to avail themselves of the experience, sources of information, advice, assistance and certain facilities of
the Advisor and to have the Advisor undertake the duties and responsibilities hereinafter set forth, on behalf of, and subject
to the supervision of the Board of Directors of the Company, all as provided herein; and

 

     WHEREAS, the Advisor is willing
to undertake to render such services, subject to the supervision of the Board of Directors, on the terms and conditions hereinafter
set forth;

 

     NOW, THEREFORE, in consideration
of the foregoing and of the mutual covenants and agreements contained herein, the parties hereto, intending to be legally bound,
hereby amend and restate the Amended and Restated Advisory Agreement dated March 30, 2011 as follows:

 

     1. DEFINITIONS. As used
in this Agreement, the following terms have the definitions hereinafter indicated:

 

     Acquisition Expenses.
Any and all expenses, exclusive of Acquisition Fees, incurred by the Company, the Operating Partnership, the Advisor, or any of
their Affiliates in connection with the selection, evaluation, acquisition, origination, making or development of any Investments,
whether or not acquired, including, without limitation, legal fees and expenses, travel and communications expenses, costs of appraisals,
nonrefundable option payments on property not acquired, accounting fees and expenses, title insurance premiums, and the costs of
performing due diligence.

 

     Acquisition Fee.
The term “Acquisition Fee” shall mean the fees payable to the Advisor pursuant to Section 9(a).

 

     Advisor. Advisor
shall mean Bluerock Enhanced Multifamily Advisor, LLC, a Delaware limited liability company, any successor advisor to the Company,
the Operating Partnership or any Person to which Bluerock Enhanced Multifamily Advisor, LLC or any successor advisor subcontracts
substantially all of its functions. Notwithstanding the foregoing, a Person hired or retained by Bluerock Enhanced Multifamily
Advisor, LLC to perform property management and related services for the Company or the Operating Partnership that is not hired
or retained to perform substantially all of the functions of Bluerock Enhanced Multifamily Advisor, LLC with respect to the Company
or the Operating Partnership as a whole shall not be deemed to be an Advisor.

 

     Affiliate or Affiliated.
With respect to any Person, (i) any Person directly or indirectly owning, controlling or holding, with the power to vote, ten percent
(10%) or more of the outstanding voting securities of such other Person; (ii) any Person ten percent (10%) or more of whose outstanding
voting securities are directly or indirectly owned, controlled or held, with the power to vote, by such other Person; (iii) any
Person directly or indirectly controlling, controlled by or under common control with such other Person; (iv) any executive officer,
director, trustee or general partner of such other Person; and (v) any legal entity for which such Person acts as an executive
officer, director, trustee or general partner.

 

    	2

    	 

    

     

     Articles of Incorporation.
The Articles of Incorporation of the Company, as amended from time to time.

 

     Asset Management Fee.
The term “Asset Management Fee” shall mean the fees payable to the Advisor pursuant to Section 9(e).

 

     Average Invested Assets.
For a specified period, the average of the aggregate book value of the assets of the Company invested, directly or indirectly,
in Investments before deducting depreciation, bad debts or other non-cash reserves, computed by taking the average of such values
at the end of each month during such period.

 

     Board of Directors or Board.
The individuals holding such office, as of any particular time, under the Articles of Incorporation, whether they be the Directors
named therein or additional or successor Directors.

 

     Bylaws. The bylaws
of the Company, as amended and as the same are in effect from time to time.

 

     Cause. With respect
to the termination of this Agreement, fraud, criminal conduct, misconduct or negligent breach of fiduciary duty by the Advisor,
or a material breach of this Agreement by the Advisor.

 

     Code. Internal Revenue
Code of 1986, as amended from time to time, or any successor statute thereto. Reference to any provision of the Code shall mean
such provision as in effect from time to time, as the same may be amended, and any successor provision thereto, as interpreted
by any applicable regulations as in effect from time to time.

 

     Company. Company
shall mean Bluerock Enhanced Multifamily Trust, Inc., a Maryland corporation.

 

     Competitive Real Estate
Commission. A real estate or brokerage commission for the purchase or sale of property which is reasonable, customary,
and competitive in light of the size, type, and location of the property.

 

     Contract Sales Price.
The total consideration stated in an agreement for the sale of an Investment.

 

     Dealer Manager.
Bluerock Capital Markets, LLC, or such other Person or entity selected by the Board to act as the dealer manager for the Offering.

 

     Dealer Manager Fee.
2.6% of Gross Proceeds from the sale of Shares in the Primary Offering, payable to the Dealer Manager for serving as the dealer
manager of such Offering.

 

     Director. A member
of the Board of Directors of the Company.

 

     Disposition Fee.
The term “Disposition Fee” shall mean the fees payable to the Advisor pursuant to Section 9(d).

 

     Distributions. Any
distributions of money or other property by the Company to Stockholders, including distributions that may constitute a return of
capital for federal income tax purposes.

 

     Effective Date.
Effective Date shall have the meaning set forth in the preamble.

 

     Excess Amount. Excess
Amount shall have the meaning set forth in Section 12.

 

     Expense Year. Expense
Year shall have the meaning set forth in Section 12.

 

     Financing Fee. The
term “Financing Fee” shall mean the fees payable to the Advisor pursuant to Section 9(g).

 

     FINRA. The Financial
Industry Regulatory Authority.

 

     Funds From Operations.
As defined by the National Association of Real Estate Investment Trusts, Funds From Operations means net income computed in accordance
with GAAP, excluding gains (or losses) from sales of property, plus depreciation and amortization, and after adjustments for unconsolidated
partnerships and joint ventures in which the REIT holds an interest.

 

    	3

    	 

    

     

     GAAP. Generally
accepted accounting principles as in effect in the United States of America from time to time.

 

     Gross Proceeds.
The aggregate purchase price of all Shares sold for the account of the Company through all Offerings, without deduction for any
Organization and Offering Expenses or volume discounts. For the purpose of computing Gross Proceeds, the purchase price of any
Share for which reduced Selling Commissions are paid to the Dealer Manager or a Participating Dealer (where net proceeds to the
Company are not reduced) shall be deemed to be the full amount of the offering price per Share pursuant to the Prospectus for such
Offering without reduction.

 

     Indemnitee. The
terms “Indemnitee” and “Indemnitees” shall have the meaning set forth in Section 20.

 

     Independent Director.
Independent Director shall have the meaning set forth in the Articles of Incorporation.

 

     Invested Capital.
The original issue price paid for the Shares reduced by prior Distributions from the sale or financing of the Investments.

 

     Investments. Any
investments by the Company or the Operating Partnership in Real Estate Assets, Real Estate-Related Loans or any other asset.

 

     Joint Ventures.
The joint venture or partnership arrangements (other than with the Operating Partnership) in which the Company or any of its subsidiaries
is a co-venturer or general partner which are established to own Investments.

 

     Listing. The listing
of the Shares on a national securities exchange or the receipt by the Stockholders of cash and/or securities of an issuer that are
listed on a national securities exchange in exchange for the Company’s common stock. Upon such Listing, the Shares shall
be deemed “Listed.”

 

     Loans. Any indebtedness
or obligations in respect of borrowed money or evidenced by bonds, notes, debentures, deeds of trust, letters of credit or similar
instruments, including mortgages and mezzanine loans.

 

     NASAA REIT Guidelines.
The Statement of Policy Regarding Real Estate Investment Trusts published by the North American Securities Administrators Association
on May 7, 2007, as may be amended from time to time.

 

     Net Income. For
any period, the Company’s total revenues applicable to such period, less the total expenses applicable to such period other
than additions to reserves for depreciation, bad debts or other similar non-cash reserves and excluding any gain from the sale
of the Company’s assets.

 

     Offering. The public
offering of Shares pursuant to a Prospectus.

 

     Operating Partnership.
Operating Partnership shall mean Bluerock Enhanced Multifamily Holdings, L.P., a Delaware limited partnership.

 

     Operating Partnership Agreement.
The Operating Partnership Agreement between the Company and Bluerock REIT Holdings, LLC.

 

     OP Units. Units
of limited partnership interest in the Operating Partnership.

 

     Organization and Offering
Expenses. Organization and Offering Expenses means all organization and offering expenses as defined by Rule 2810 promulgated
by FINRA to be paid by the Company in connection with the Offering, including: (a) all actual, incurred issuer expenses, as defined
by FINRA Rule 2810(b)(4)(C)(i), including legal, accounting, printing, mailing, technology, filing fees, charges of the escrow
holder and transfer agent, charges of the Advisor or its Affiliates for administrative services related to the issuance of Shares
in the Offering and amounts to reimburse costs in connection with preparing supplemental sales materials and reimbursements for
actual costs incurred for travel, meals and lodging by employees of the Advisor and its Affiliates to attend retail seminars hosted
by broker-dealers or bona fide training and education meetings hosted by the Advisor or its Affiliates; (b) and all items
of underwriting compensation as defined by FINRA Rule 2310, including Selling Commissions, the Dealer Manager Fee and (i) amounts
used to reimburse FINRA-registered personnel of the Dealer Manager for actual costs incurred for travel, meals and lodging to attend
retail seminars sponsored by Participating Dealers; (ii) sponsorship fees for seminars sponsored by Participating Dealers, (iii)
amounts used to reimburse FINRA-registered personnel of the Dealer Manager and Participating Dealers for the actual costs incurred
for travel, meals and lodging in connection with attending bona fide training and education meetings hosted by the Company,
the Advisor or its Affiliates, (iv) amounts used to reimburse the Dealer Manager for legal fees and expenses, and (v) customary
promotional items, and (c) reimbursement of bona fide due diligence expenses to the Dealer Manager or a Participating Dealer
that are supported by a detailed and itemized invoice.

 

    	4

    	 

    

     Origination Fee.
The term “Origination Fee” shall mean the fees payable to the Advisor pursuant to Section 9(b).

 

     Oversight Fee. The
term “Oversight Fee” shall mean the fees payable to the Advisor pursuant to Section 9(f).

 

     Participating Dealers.
Securities broker-dealers who are registered with the Securities and Exchange Commission and members of FINRA, or who are exempt
from broker-dealer registration, and who, in either case, have executed participating dealer or other agreements with the Dealer
Manager to sell Shares.

 

     Person. An individual,
corporation, partnership, trust, joint venture, limited liability company or other entity.

 

     Primary Offering.
The portion of an Offering other than the Shares offered pursuant to the Company’s distribution reinvestment plan.

 

     Property Management Fee.
The term “Property Management Fee” shall mean the fees payable to the Advisor pursuant to Section 9(f).

 

     Prospectus. A “Prospectus”
under Section 2(10) of the Securities Act, including a preliminary Prospectus, an offering circular as described in Rule 253 of
the General Rules and Regulations under the Securities Act or, in the case of an intrastate offering, any document by whatever
name known, utilized for the purpose of offering and selling securities to the public.

 

     Real Estate Assets.
Any investment by the Company or the Operating Partnership in unimproved and improved Real Property (including, without limitation,
fee or leasehold interests, options and leases) either directly or through a Joint Venture.

 

     Real Estate-Related Loans.
Any investments in, or origination of, mortgage loans and other types of real estate-related debt financing, including, without
limitation, mezzanine loans, bridge loans, convertible mortgages, wraparound mortgage loans, construction mortgage loans, loans
on leasehold interests and participations in such loans, by the Company or the Operating Partnership.

 

     Real Property. Real
property owned from time to time by the Company or the Operating Partnership, either directly or through joint venture arrangements
or other partnerships, which consists of (i) land only, (ii) land, including the buildings located thereon, (iii) buildings only
or (iv) such investments the Board and the Advisor mutually designate as Real Property to the extent such investments could be
classified as Real Property.

 

     REIT. A “real
estate investment trust” under Sections 856 through 860 of the Code.

 

     Sale or Sales. Any
transaction or series of transactions whereby: (A) the Company or the Operating Partnership directly or indirectly (except as described
in other subsections of this definition) sells, grants, transfers, conveys, or relinquishes its ownership of any Real Property,
Loan or other Investment or portion thereof, including the lease of any Real Property consisting of a building only, and including
any event with respect to any Real Property which gives rise to a significant amount of insurance proceeds or condemnation awards;
(B) the Company or the Operating Partnership directly or indirectly (except as described in other subsections of this definition)
sells, grants, transfers, conveys, or relinquishes its ownership of all or substantially all of the interest of the Company or
the Operating Partnership in any Joint Venture in which it is a co-venturer or partner; (C) any Joint Venture directly or indirectly
(except as described in other subsections of this definition) in which the Company or the Operating Partnership as a co-venturer
or partner sells, grants, transfers, conveys, or relinquishes its ownership of any Real Property or portion thereof, including
any event with respect to any Real Property which gives rise to insurance claims or condemnation awards; or (D) the Company or
the Operating Partnership directly or indirectly (except as described in other subsections of this definition) sells, grants, conveys
or relinquishes its interest in any Real Estate-Related Loans or portion thereof (including with respect to any Real Estate-Related
Loan, all payments thereunder or in satisfaction thereof other than regularly scheduled interest payments) and any event which
gives rise to a significant amount of insurance proceeds or similar awards; or (E) the Company or the Operating Partnership directly
or indirectly (except as described in other subsections of this definition) sells, grants, transfers, conveys, or relinquishes
its ownership of any other asset not previously described in this definition or any portion thereof, but not including any transaction
or series of transactions specified in clauses (A) through (E) above in which the proceeds of such transaction or series of transactions
are reinvested by the Company in one or more assets within 180 days thereafter.

 

    	5

    	 

    

     Securities Act.
The Securities Act of 1933, as amended.

 

     Selling Commission.
7.0% of Gross Proceeds from the sale of Shares in the Primary Offering payable to the Dealer Manager and reallowable to Participating
Dealers with respect to Shares sold by them.

 

     Shares. The shares
of the Company’s capital stock, par value $0.01 per share.

 

     Special Committee.
The term “Special Committee” shall have the meaning as provided in Section 13(a).

 

     Sponsor. Sponsor
shall mean Bluerock Real Estate, L.L.C., a Delaware limited liability company.

 

     Stockholders. The
registered holders of the Shares.

 

     Termination Date.
The date of termination of this Agreement.

 

     Total Operating Expenses.
All costs and expenses paid or incurred by the Company, as determined under GAAP, that are in any way related to the operation
of the Company or its business, including asset management fees and other fees paid to the Advisor, but excluding (i) the expenses
of raising capital such as Organization and Offering Expenses, legal, audit, accounting, underwriting, brokerage, listing, registration,
and other fees, printing and other such expenses and taxes incurred in connection with the issuance, distribution, transfer, registration
and Listing, (ii) interest payments, (iii) taxes, (iv) non-cash expenditures such as depreciation, amortization and bad debt reserves,
(v) incentive fees paid in compliance with the NASAA REIT Guidelines, (vi) Acquisition Fees, Origination Fees and Acquisition Expenses
and (vii) other fees and expenses connected with the acquisition, disposition, management and ownership of real estate interests,
mortgages or other property (including the costs of foreclosure, insurance premiums, legal services, maintenance, repair, and improvement
of property). The definition of “Total Operating Expenses” set forth above is intended to encompass only those expenses
which are required to be treated as Total Operating Expenses under the NASAA REIT Guidelines. As a result, and notwithstanding
the definition set forth above, any expense of the Company which is not part of Total Operating Expenses under the NASAA REIT Guidelines
shall not be treated as part of Total Operating Expenses for purposes hereof.

 

     2%/25% Guidelines.
2%/25% Guidelines shall have the meaning set forth in Section 12.

 

     2. APPOINTMENT. The Company
and the Operating Partnership hereby appoint the Advisor to serve as their advisor on the terms and conditions set forth in this
Agreement, and the Advisor hereby accepts such appointment.

 

     3. DUTIES OF THE ADVISOR.
As of the Effective Date, the Advisor undertakes to use its best efforts to present to the Company and the Operating Partnership
potential investment opportunities and to provide a continuing and suitable investment program consistent with the investment objectives
and policies of the Company as determined and adopted from time to time by the Board. In performance of this undertaking, subject
to the supervision of the Board and consistent with the provisions of the Articles of Incorporation and Bylaws of the Company and
the Operating Partnership Agreement, the Advisor shall, either directly or by engaging an Affiliate:

 

     (a) serve as the Company’s
and the Operating Partnership’s investment and financial advisor;

 

     (b) provide the daily management
for the Company and the Operating Partnership and perform and supervise the various administrative functions reasonably necessary
for the management of the Company and the Operating Partnership;

 

    	6

    	 

    

     (c) investigate, select, and,
on behalf of the Company and the Operating Partnership, engage and conduct business with and supervise the performance of such
Persons as the Advisor deems necessary to the proper performance of its obligations hereunder, including, but not limited to, consultants,
accountants, correspondents, lenders, technical advisors, attorneys, brokers, underwriters, corporate fiduciaries, escrow agents,
depositaries, custodians, agents for collection, insurers, insurance agents, banks, builders, developers, property owners, real
estate management companies, real estate operating companies, securities investment advisors, mortgagors, registrar and transfer
agent and any and all agents for any of the foregoing, including Affiliates of the Advisor, and Persons acting in any other capacity
deemed by the Advisor necessary or desirable for the performance of any of the foregoing services, including, but not limited to,
entering into contracts in the name of the Company and the Operating Partnership with any of the foregoing;

 

     (d) consult with the officers
and Directors of the Company and assist the Directors in the formulation and implementation of the Company’s financial policies,
and, as necessary, furnish the Board with advice and recommendations with respect to the making of investments consistent with
the investment objectives and policies of the Company and in connection with any borrowings proposed to be undertaken by the Company
or the Operating Partnership;

 

     (e) subject to the provisions
of Section 4 hereof, (i) participate in formulating an investment strategy and asset allocation framework, (ii) locate, analyze
and select potential Investments, (iii) structure and negotiate the terms and conditions of transactions pursuant to which acquisitions
and dispositions of Investments will be made; (iv) research, identify, review and recommend acquisitions and dispositions of Investments
to the Board and make Investments on behalf of the Company and the Operating Partnership in compliance with the investment objectives
and policies of the Company; (v) arrange for financing and refinancing and make other changes in the asset or capital structure
of, and dispose of, reinvest the proceeds from the sale of, or otherwise deal with, Investments; (vi) enter into leases and service
contracts for Real Estate Assets and, to the extent necessary, perform all other operational functions for the maintenance and
administration of such Real Estate Assets; (vii) actively oversee and manage Investments for purposes of meeting the Company’s
investment objectives and reviewing and analyzing financial information for each of the Investments and the overall portfolio;
(viii) select Joint Venture partners, structure corresponding agreements and oversee and monitor these relationships; (ix) oversee,
supervise and evaluate Affiliated and non-Affiliated property managers who perform services for the Company or the Operating Partnership;
(x) oversee Affiliated and non-Affiliated Persons with whom the Advisor contracts to perform certain of the services required to
be performed under this Agreement; (xi) manage accounting and other record-keeping functions for the Company and the Operating
Partnership, including reviewing and analyzing the capital and operating budgets for the Real Estate Assets and generating an annual
budget for the Company; (xii) recommend various liquidity events to the Board when appropriate and (xiii) source and structure
Real Estate-Related Loans;

 

     (f) upon request, provide
the Board with periodic reports regarding prospective investments;

 

     (g) make investments in,
and dispositions of, Investments within the discretionary limits and authority as granted by the Board;

 

     (h) negotiate on behalf of the
Company and the Operating Partnership with banks or lenders for Loans to be made to the Company and the Operating Partnership,
and negotiate on behalf of the Company and the Operating Partnership with investment banking firms and broker-dealers or negotiate
private sales of Shares or obtain Loans for the Company and the Operating Partnership, but in no event in such a way so that the
Advisor shall be acting as broker-dealer or underwriter; and provided, further, that any fees and costs payable to third parties
incurred by the Advisor in connection with the foregoing shall be the responsibility of the Company or the Operating Partnership;

 

     (i) obtain reports (which may,
but are not required to, be prepared by the Advisor or its Affiliates), where appropriate, concerning the value of Investments
or contemplated investments of the Company and the Operating Partnership;

 

     (j) from time to time, or at any
time reasonably requested by the Board, make reports to the Board of its performance of services to the Company and the Operating
Partnership under this Agreement, including reports with respect to potential conflicts of interest involving the Advisor or any
of its Affiliates;

 

     (k) provide the Company and
the Operating Partnership with all necessary cash management services;

 

    	7

    	 

    

   

      (l) do all things necessary
to assure its ability to render the services described in this Agreement;

 

     (m) deliver to, or maintain on
behalf of, the Company copies of all appraisals obtained in connection with the investments in any Real Estate Assets as may be
required to be obtained by the Board;

 

     (n) notify the Board of
all proposed material transactions before they are completed;

 

     (o) effect any private placement
of OP Units, tenancy-in-common (TIC) or other interests in Investments as may be approved by the Board;

 

     (p) perform investor-relations
and Stockholder communications functions for the Company; and

 

     (q) maintain the Company’s
accounting and other records and assist the Company in filing all reports required to be filed by it with the Securities and Exchange
Commission, the Internal Revenue Service and other regulatory agencies.

 

     Notwithstanding the foregoing,
the Advisor may delegate any of the foregoing duties to any Person so long as the Advisor or any Affiliate remains responsible
for the performance of the duties set forth in this Section 3.

 

4. AUTHORITY OF ADVISOR.

 

     (a) Pursuant to the terms of this
Agreement (including the restrictions included in this Section 4 and in Section 7), and subject to the continuing and exclusive
authority of the Board over the management of the Company, the Board hereby delegates to the Advisor the authority to perform the
services described in Section 3.

 

     (b) Notwithstanding the foregoing,
any investment in Real Estate Assets, including any financing thereof, will require the prior approval of the Board, any particular
Directors specified by the Board or any committee of the Board, as the case may be.

 

     (c) If a transaction requires
approval by the Independent Directors, the Advisor will deliver to the Independent Directors all documents and other information
required by them to properly evaluate the proposed transaction.

 

     (d) The prior approval of a majority
of the Independent Directors not otherwise interested in the transaction and a majority of the Board not otherwise interested in
the transaction will be required for each transaction to which the Advisor or its Affiliates is a party.

 

     (e) The Board may, at any time
upon the giving of notice to the Advisor, modify or revoke the authority set forth in this Section 4; provided, however, that such
modification or revocation shall be effective upon receipt by the Advisor and shall not be applicable to investment transactions
to which the Advisor has committed the Company or the Operating Partnership prior to the date of receipt by the Advisor of such
notification.

 

     5. BANK ACCOUNTS. The Advisor
may establish and maintain one or more bank accounts in its own name for the account of the Company or the Operating Partnership
or in the name of the Company and the Operating Partnership and may collect and deposit into any such account or accounts, and
disburse from any such account or accounts, any money on behalf of the Company or the Operating Partnership, under such terms and
conditions as the Board may approve, provided that no funds shall be commingled with the funds of the Advisor; and the Advisor
shall from time to time render appropriate accountings of such collections and payments to the Board and to the auditors of the
Company.

 

     6. RECORDS; ACCESS. The
Advisor shall maintain appropriate records of all its activities hereunder and make such records available for inspection by the
Directors and by counsel, auditors and authorized agents of the Company, at any time or from time to time during normal business
hours. The Advisor shall at all reasonable times have access to the books and records of the Company and the Operating Partnership.

 

     7. LIMITATIONS ON ACTIVITIES.
Anything else in this Agreement to the contrary notwithstanding, the Advisor shall refrain from taking any action which, in its
sole judgment made in good faith, would (a) adversely affect the status of the Company as a REIT unless the Board has determined
that REIT qualification is not in the best interests of the Company and its Stockholders, (b) subject the Company to regulation
under the Investment Company Act of 1940, as amended, or (c) violate any law, rule, regulation or statement of policy of any governmental
body or agency having jurisdiction over the Company or its Shares, or otherwise not be permitted by the Articles of Incorporation
or Bylaws of the Company, except if such action shall be ordered by the Board, in which case the Advisor shall promptly notify
the Board of the Advisor’s judgment of the potential impact of such action and shall refrain from taking such action until
it receives further clarification or instructions from the Board. In such event, the Advisor shall have no liability for acting
in accordance with the specific instructions of the Board so given. Notwithstanding the foregoing, the Advisor, its directors,
officers, employees and members, and the partners, directors, officers, members and stockholders of the Advisor’s Affiliates
shall not be liable to the Company or to the Directors or Stockholders for any act or omission by the Advisor, its directors, officers,
employees, or members, and the partners, directors, officers, members or stockholders of the Advisor’s Affiliates taken or
omitted to be taken in the performance of their duties under this Agreement except as provided in Section 20 of this Agreement.

 

    	8

    	 

    

     8. RELATIONSHIP WITH DIRECTORS.
Subject to Section 7 of this Agreement and to restrictions advisable with respect to the qualification of the Company as a REIT,
directors, officers and employees of the Advisor or an Affiliate of the Advisor or any corporate parent of an Affiliate, may serve
as a Director and as officers of the Company, except that no director, officer or employee of the Advisor or its Affiliates who
also is a Director or officer of the Company shall receive any compensation from the Company for serving as a Director or officer
other than reasonable reimbursement for travel and related expenses incurred in attending meetings of the Board and no such Director
shall be deemed an Independent Director for purposes of satisfying the Director independence requirement set forth in the Articles
of Incorporation.

 

      9. FEES.

 

     (a)Acquisition Fees.
The Advisor shall receive an Acquisition Fee payable by the Company as compensation for services rendered in connection with the
investigation, selection, sourcing, due diligence and acquisition (by purchase, investment or exchange) of Real Estate Assets or
investments. The total Acquisition Fees payable to the Advisor or its Affiliates shall equal 2.50% of the purchase price. The purchase
price of an Investment shall equal the amount paid or allocated to the purchase, development, construction or improvement of a
property, inclusive of expenses related thereto, and the amount of debt associated with such Real Estate Asset or investment. The
purchase price allocable for a joint venture investment shall equal the product of (i) the purchase price in the underlying Real
Estate Asset and (ii) the Company’s ownership percentage in the joint venture. For purposes of this section, “ownership
percentage” shall be the percentage of capital stock (or equivalent indicia of ownership) owned by the Company, without regard
to classification of such capital stock. With respect to investments in and originations of Real Estate-Related Loans, the Company
will pay the Advisor an Origination Fee in lieu of the Acquisition Fee. The Advisor shall submit an invoice to the Company following
the closing or closings of each Real Estate Asset or Investment, accompanied by a computation of the Acquisition Fee. The Company
shall pay the Acquisition Fee promptly following receipt of the invoice.

 

     (b)Origination Fees.
As compensation for the investigation, selection, sourcing, due diligence and acquisition or origination of Real Estate-Related
Loans, the Company shall pay an Origination Fee to the Advisor for each such acquisition or origination equal to 1.75% of the greater
of (i) the amount funded by the Company to originate the Real Estate-Related Loan or (ii) the purchase price of any Real Estate-Related
Loan that the Company acquires, including third-party expenses. The Company will not pay an Acquisition Fee with respect to any
such Real Estate-Related Loan. The Company will not pay an Origination Fee to the Advisor with respect to any transaction pursuant
to which the Company is required to pay the Advisor an Acquisition Fee. Notwithstanding anything herein to the contrary, the payment
of Origination Fees by the Company shall be subject to the limitations on Acquisition Fees contained in the Company’s Articles
of Incorporation. The Advisor shall submit an invoice to the Company following the closing or closings of each Real Estate-Related
Loan, accompanied by a computation of the Origination Fee. The Company shall pay the Origination Fee to the Advisor promptly following
receipt of the invoice.

 

     (c)Limitation on Total Acquisition
Fees, Origination Fees and Acquisition Expenses. Pursuant to the NASAA REIT Guidelines, the total of all Acquisition Fees,
Origination Fees and Acquisition Expenses payable in connection with any Investment shall not exceed 6.0% of the contract purchase
price,” as defined in the Articles of Incorporation, of the Investment acquired.

 

    	9

    	 

    

 

     (d)Disposition Fee.
In connection with a Sale of an Investment (except for such Investments that are traded on a national securities exchange) in which
the Advisor or any Affiliate of the Advisor provides a substantial amount of services, as determined by the Independent Directors,
the Company shall pay to the Advisor or its Affiliate a Disposition Fee equal to the lesser of (i) one-half of a Competitive Real
Estate Commission or (ii) 1.5% of the Contract Sales Price of such Investment. Any Disposition Fee payable under this Section 9(d)
may be paid in addition to real estate commissions paid to non-Affiliates, provided that the total real estate commissions (including
such Disposition Fee) paid to all Persons by the Company for the Sale of each Investment shall not exceed 6.0% of the Contract
Sales Price. Substantial assistance in connection with a Sale may include the preparation of an investment package (for example,
for a Sale, a package including a new investment analysis, rent rolls, tenant information regarding credit, a property title report,
an environmental report, a structural report and exhibits) or other such substantial services performed in connection with a Sale.

 

     (e)Asset Management Fee.
The Advisor shall receive the Asset Management Fee as compensation for services rendered in connection with the day-to-day management
of the Company’s assets and operations. The Asset Management Fee shall be equal to a monthly fee of one-twelfth of 0.65%,
of the higher of (A) the aggregate cost of each Investment the Company acquires, excluding Acquisition Fees and Acquisition Expenses
but including any debt attributable to the asset (including debt encumbering the asset after its acquisition) and the outstanding
principal amount of the Real Estate-Related Loans acquired or originated and other Investments, provided that, with respect to
any Real Estate Assets developed, constructed or improved by the Company, cost for purposes herein shall include the amount expended
by the company for such development, construction or improvement and (B) the fair market value of each Investment (before non-cash
reserves, bad debt and depreciation) as determined by an independent valuation report, if available; provided, however, that 50%
of the Asset Management Fee payable hereunder will not be paid until Stockholders have received Distributions in an amount equal
to at least a 6.0% per annum cumulative, non-compounded return on Invested Capital, at which time all unpaid portions of the Asset
Management Fee shall become due and payable). The Asset Management Fee will be based only on the portion of the cost or value attributable
to the Company’s investment in an asset if the Company does not own all of an asset. The amount of the Asset Management Fee
for each calendar month hereunder shall be calculated as of the last day of such month and shall be prorated for any partial month.

 

     (f)Property Management Fee.
The Advisor or its Affiliate shall receive a Property Management Fee equal to 4.0% of the monthly gross revenues from any Real
Property it manages, payable monthly. In the alternative, should the Company contract property management services for certain
Real Properties to non-Affiliated third parties, the Advisor shall receive an Oversight Fee equal to 1.0% of monthly gross revenues
of such Real Properties so managed.

 

     (g)Financing Fee.
The Advisor shall receive a Financing Fee equal to 1.0% of the amount made available to the Company under any Loan made available
to it. The Advisor may reallow some or all of this Financing Fee to reimburse third parties with whom it may subcontract to procure
any such Loan.

 

     (h)Exclusion of Certain
Transactions. In the event the Company or the Operating Partnership shall propose to enter into any transaction in which
the Advisor, any Affiliate of the Advisor or any of the Advisor’s directors or officers has a direct or indirect interest,
then such transaction shall be approved by a majority of the members of the Board not otherwise interested in such transaction,
including a majority of the Independent Directors.

 

10. EXPENSES.

 

     (a) In addition to the compensation
paid to the Advisor pursuant to Section 9 hereof, the Company or the Operating Partnership shall pay directly or reimburse the
Advisor for all of the expenses paid or incurred by the Advisor or its Affiliates in connection with the services it provides to
the Company and the Operating Partnership pursuant to this Agreement, including, but not limited to:

 

     (i) Organization and Offering
Expenses other than the Selling Commission and the Dealer Manager Fee; provided, however, that the Company shall not reimburse
the Advisor to the extent such reimbursement would cause the total amount of Organization and Offering Expenses paid by the Company
and the Operating Partnership to exceed 15.0% of the Gross Proceeds raised as of the date of the reimbursement;

 

 

    	10

    	 

    

      (ii) Acquisition Expenses incurred
in connection with the selection and acquisition of Investments subject to the aggregate 6.0% cap on Acquisition Fees, Origination
Fees and Acquisition Expenses set forth in Section 9(c);

 

      (iii) the actual cost
of goods and services used by the Company and obtained from entities not affiliated with the Advisor;

 

      (iv) interest and other
costs for borrowed money, including discounts, points and other similar fees;

 

      (v) taxes and assessments
on income of the Company or Investments;

 

      (vi) costs associated
with insurance required in connection with the business of the Company or by the Board;

 

      (vii) expenses of managing and
operating Investments owned by the Company, whether payable to an Affiliate of the Company or a non-affiliated Person;

 

      (viii) all expenses in
connection with payments to the Directors for attending meetings of the Board and Stockholders;

 

      (ix) expenses associated with
a Listing, if applicable, or with the issuance and distribution of Shares, such as selling commissions and fees, advertising expenses,
taxes, legal and accounting fees, listing and registration fees, and other Organization and Offering Expenses;

 

      (x) expenses connected
with payments of Distributions;

 

      (xi) expenses of organizing, revising,
amending, converting, modifying, or terminating the Company or any subsidiary thereof or the Articles of Incorporation or governing
documents of any subsidiary;

 

      (xii) expenses of maintaining
communications with Stockholders, including the cost of preparation, printing, and mailing annual reports and other Stockholder
reports, proxy statements and other reports required by governmental entities;

 

      (xiii) administrative service
expenses (including (a) personnel costs; provided, however, that no reimbursement shall be made for costs of personnel to the extent
that such personnel perform services in transactions for which the Advisor receives Acquisition Fees, Origination Fees or Disposition
Fees, and (b) the Company’s allocable share of other overhead of the Advisor such as rent and utilities); and

 

      (xiv) audit, accounting
and legal fees.

 

       (b) Expenses incurred by the Advisor
on behalf of the Company and the Operating Partnership and payable pursuant to this Section 10 shall be reimbursed no less than
monthly to the Advisor.

 

       (c) The Advisor shall prepare
a statement documenting the expenses of the Company and the Operating Partnership during each quarter, and shall deliver such statement
to the Company and the Operating Partnership within 45 days after the end of each quarter.

 

     11. OTHER SERVICES. Should
the Board request that the Advisor or any director, officer or employee thereof render services for the Company and the Operating
Partnership other than set forth in Section 3, such services shall be separately compensated at such rates and in such amounts
as are agreed upon by the Advisor and the Board, including a majority of the Independent Directors, subject to the limitations
contained in the Articles of Incorporation, and shall not be deemed to be services pursuant to the terms of this Agreement.

 

     12. REIMBURSEMENT TO THE ADVISOR.
The Company shall not reimburse the Advisor at the end of any fiscal quarter in which Total Operating Expenses for the four consecutive
fiscal quarters then ended (the  Expense Year ”) exceed (the  Excess Amount ”) the greater of 2% of Average
Invested Assets or 25% of Net Income (the  2%/25% Guidelines ”) for such year. Any Excess Amount paid to the Advisor
during a fiscal quarter shall be repaid to the Company or, at the option of the Company, subtracted from the Total Operating Expenses
reimbursed during the subsequent fiscal quarter. If there is an Excess Amount in any Expense Year and the Independent Directors
determine that such excess was justified based on unusual and nonrecurring factors which they deem sufficient, then the Excess
Amount may be reimbursed to the Advisor at such time as the Advisor, in its sole discretion, requests, provided that there shall
be sent to the Stockholders a written disclosure of such determination, together with an explanation of the factors the Independent
Directors considered in determining that such excess expenses were justified. Such determination shall be reflected in the minutes
of the meetings of the Board. All figures used in the foregoing computation shall be determined in accordance with GAAP applied
on a consistent basis.

 

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      13. BUSINESS COMBINATION.

 

     (a)Business Combination
with Advisor. The Company shall consider becoming a self-administered REIT once the Company’s assets and income are,
in the view of the Board, of sufficient size such that internalizing the management functions performed by the Advisor is in the
best interests of the Company and the Stockholders. If the Board should make this determination in the future, the Company shall
pay one-half, and the Advisor shall pay the other one-half, of the cost of an independent investment banking firm, which shall
jointly advise the Company and the Advisor on the value of the Advisor. After the investment banking firm completes its analyses,
the Company shall require it to prepare a written report and make a formal presentation to the Board. Following the presentation
by the investment banking firm, the Board shall form a special committee (the “Special Committee”) comprised
entirely of Independent Directors to consider a possible business combination with the Advisor. The Board shall, subject to applicable
law, delegate all of its decision-making power and authority to the Special Committee with respect to matters relating to a possible
business combination with the Advisor. The Special Committee also shall be authorized to retain its own financial advisors and
legal counsel to, among other things, negotiate with representatives of the Advisor regarding a possible business combination with
the Advisor.

 

     (b)Conditions to Completion
of Business Combination with Advisor. Before the Company may complete any business combination with the Advisor in accordance
with this Section 13, the following conditions shall be satisfied:

 

         (i) the Special
Committee formed in accordance with Section 13(a) hereof receives an opinion from a qualified investment banking firm, separate
and distinct from the firm jointly retained by the Company and the Advisor to provide a valuation analysis in accordance with Section
13(a) hereof, concluding that the consideration to be paid to acquire the Advisor is fair to the Stockholders from a financial
point of view;

 

         (ii) the Board
determines that such business combination is advisable and in the best interests of the Company and the Stockholders; and

 

         (iii) such
business combination is approved by the Stockholders entitled to vote thereon in accordance with the Company’s Articles of
Incorporation and Bylaws.

 

     14. OTHER ACTIVITIES OF THE
ADVISOR. Nothing herein contained shall prevent the Advisor or any of its Affiliates from engaging in or earning fees from
other activities, including, without limitation, the rendering of advice to other Persons (including other REITs) and the management
of other programs advised, sponsored or organized by the Advisor or its Affiliates; nor shall this Agreement limit or restrict
the right of any director, officer, member, partner, employee, or stockholder of the Advisor or its Affiliates to engage in or
earn fees from any other business or to render services of any kind to any other partnership, corporation, firm, individual, trust
or association and earn fees for rendering such services; provided, however, that the Advisor must devote sufficient resources
to the Company’s business to discharge its obligations to the Company under this Agreement. The Advisor may, with respect
to any investment in which the Company is a participant, also render advice and service to each and every other participant therein,
and earn fees for rendering such advice and service. Specifically, it is contemplated that the Company may enter into joint ventures
or other similar co-investment arrangements with certain Persons, and pursuant to the agreements governing such joint ventures
or arrangements, the Advisor may be engaged to provide advice and service to such Persons, in which case the Advisor will earn
fees for rendering such advice and service.

 

     The Advisor shall report to the
Board the existence of any condition or circumstance, existing or anticipated, of which it has knowledge, which creates or could
create a conflict of interest between the Advisor’s obligations to the Company and its obligations to or its interest in
any other partnership, corporation, firm, individual, trust or association. The Advisor or its Affiliates shall promptly disclose
to the Board knowledge of such condition or circumstance. If the Advisor, Director or Affiliates thereof have sponsored other investment
programs with similar investment objectives which have investment funds available at the same time as the Company, the Advisor
shall inform the Board of the method to be applied by the Advisor in allocating investment opportunities among the Company and
competing investment entities and shall provide regular updates to the Board of the investment opportunities provided by the Advisor
to competing programs in order for the Board (including the Independent Directors) to fulfill its duty to ensure that the Advisor
and its Affiliates use their best efforts to apply such method fairly to the Company.

 

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     15. THE BLUEROCK NAME.
The Advisor and its Affiliates have a proprietary interest in the name “Bluerock.” The Advisor hereby grants to the
Company a non-transferable, non-assignable, non-exclusive, royalty-free right and license to use the name “Bluerock”
during the term of this Agreement. Accordingly, and in recognition of this right, if at any time the Company ceases to retain the
Advisor or one of its Affiliates to perform advisory services for the Company, the Company will, promptly after receipt of written
request from the Advisor, cease to conduct business under or use the name “Bluerock” or any derivative thereof and
the Company shall change its name and the names of any of its subsidiaries to a name that does not contain the name “Bluerock”
or any other word or words that might, in the reasonable discretion of the Advisor, be susceptible of indication of some form of
relationship between the Company and the Advisor or any its Affiliates. At such time, the Company will also make any changes to
any trademarks, servicemarks or other marks necessary to remove any references to the word “Bluerock.” Consistent with
the foregoing, it is specifically recognized that the Advisor or one or more of its Affiliates has in the past and may in the future
organize, sponsor or otherwise permit to exist other investment vehicles (including vehicles for investment in real estate) and
financial and service organizations having “Bluerock” as a part of their name, all without the need for any consent
(and without the right to object thereto) by the Company.

 

     16. TERM OF AGREEMENT.
This Agreement shall continue in force until October 14, 2012, subject to an unlimited number of successive one-year renewals upon
mutual consent of the parties.

 

     17. TERMINATION BY THE PARTIES.
This Agreement may be terminated upon 60 days written notice without Cause and without penalty by the Independent Directors of
the Company or the Advisor. The provisions of Sections 18 through 31 of this Agreement shall survive termination of this Agreement.

 

     18. ASSIGNMENT TO AN AFFILIATE.
This Agreement may be assigned by the Advisor to an Affiliate with the approval of a majority of the Directors (including a majority
of the Independent Directors). The Advisor may assign any rights to receive fees or other payments under this Agreement to any
Person without obtaining the approval of the Directors. This Agreement shall not be assigned by the Company or the Operating Partnership
without the consent of the Advisor, except in the case of an assignment by the Company or the Operating Partnership to a corporation,
limited partnership or other organization which is a successor to all of the assets, rights and obligations of the Company or the
Operating Partnership, in which case such successor organization shall be bound hereunder and by the terms of said assignment in
the same manner as the Company and the Operating Partnership are bound by this Agreement.

 

      19. PAYMENTS TO AND DUTIES
OF ADVISOR UPON TERMINATION.

 

     (a) After the Termination Date,
the Advisor shall not be entitled to compensation for further services hereunder except it shall be entitled to receive from the
Company or the Operating Partnership within 30 days after the effective date of such termination all unpaid reimbursements of expenses
and all earned but unpaid fees payable to the Advisor prior to termination of this Agreement, subject to the 2%/25% Guidelines
to the extent applicable.

 

      (b) The Advisor shall
promptly upon termination:

 

       (i) pay
over to the Company and the Operating Partnership all money collected and held for the account of the Company and the Operating
Partnership pursuant to this Agreement, after deducting any accrued compensation and reimbursement for its expenses to which it
is then entitled;

 

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

 

       (iii) deliver to the Board
all assets, including all Investments, and documents of the Company and the Operating Partnership then in the custody of the Advisor;
and

 

       (iv) cooperate with
the Company and the Operating Partnership to provide an orderly management transition.

 

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     20. INDEMNIFICATION BY THE
COMPANY AND THE OPERATING PARTNERSHIP. The Company and the Operating Partnership shall indemnify and hold harmless the Advisor
and its Affiliates, including their respective directors (the “Indemnitees,” and each an “Indemnitee”),
from all liability, claims, damages or losses arising in the performance of their duties hereunder, and related expenses, including
reasonable attorneys’ fees, to the extent such liability, claims, damages or losses and related expenses are not fully reimbursed
by insurance, and to the extent that such indemnification would not be inconsistent with the laws of the State of Maryland, the
Articles of Incorporation or the provisions of Section II.G of the NASAA REIT Guidelines. Notwithstanding the foregoing, the Company
and the Operating Partnership shall not provide for indemnification of an Indemnitee for any loss or liability suffered by such
Indemnitee, nor shall they provide that an Indemnitee be held harmless for any loss or liability suffered by the Company and the
Operating Partnership, unless all of the following conditions are met:

 

     (a) the Indemnitee has determined,
in good faith, that the course of conduct that caused the loss or liability was in the best interest of the Company and the Operating
Partnership;

 

     (b) the Indemnitee was acting
on behalf of, or performing services for, the Company or the Operating Partnership;

 

     (c) such liability or loss was
not the result of negligence or misconduct by the Indemnitee; and

 

     (d) such indemnification or agreement
to hold harmless is recoverable only out of the Company’s net assets and not from the Stockholders.

 

     Notwithstanding the foregoing,
an Indemnitee shall not be indemnified by the Company and the Operating Partnership for any losses, liabilities or expenses arising
from or out of an alleged violation of federal or state securities laws by such Indemnitee unless one or more of the following
conditions are met:

 

     (a) there has been a successful
adjudication on the merits of each count involving alleged securities law violations as to the Indemnitee;

 

     (b) such claims have been
dismissed with prejudice on the merits by a court of competent jurisdiction as to the Indemnitee; or

 

     (c) a court of competent jurisdiction
approves a settlement of the claims against the Indemnitee and finds that indemnification of the settlement and the related costs
should be made, and the court considering the request for indemnification has been advised of the position of the Securities and
Exchange Commission and of the published position of any state securities regulatory authority in which securities of the Company
or the Operating Partnership were offered or sold as to indemnification for violation of securities laws.

 

     In addition, the advancement of
the Company’s or the Operating Partnership’s funds to an Indemnitee for legal expenses and other costs incurred as
a result of any legal action for which indemnification is being sought is permissible only if all of the following conditions are
satisfied:

 

     (a) the legal action relates to
acts or omissions with respect to the performance of duties or services on behalf of the Company or the Operating Partnership;

 

     (b) the legal action is initiated
by a third party who is not a Stockholder or the legal action is initiated by a Stockholder acting in such Stockholder’s
capacity as such and a court of competent jurisdiction specifically approves such advancement; and

 

     (c) the Indemnitee undertakes
to repay the advanced funds to the Company or the Operating Partnership, together with the applicable legal rate of interest thereon,
in cases in which such Indemnitee is found not to be entitled to indemnification.

 

     21. INDEMNIFICATION BY ADVISOR.
The Advisor shall indemnify and hold harmless the Company and the Operating Partnership from contract or other liability, claims,
damages, taxes or losses and related expenses including attorneys’ fees, to the extent that such liability, claims, damages,
taxes or losses and related expenses are not fully reimbursed by insurance and are incurred by reason of the Advisor’s bad
faith, fraud, intentional misconduct, gross negligence or reckless disregard of its duties; provided, however, that the Advisor
shall not be held responsible for any action of the Board in following or declining to follow any advice or recommendation given
by the Advisor.

 

    	14

    	 

    

     22. NON-SOLICITATION. During
the period commencing on the Effective Date and ending one year following the Termination Date, the Company shall not, without
the Advisor’s prior written consent, directly or indirectly (a) solicit or encourage any person to leave the employment or
other service of the Advisor or its Affiliates; or (b) hire any person within the one year period following the termination of
such person’s employment with the Advisor or its Affiliates. During the period commencing on the date hereof through and
ending one year following the Termination Date, the Company will not, whether for its own account or for the account of any other
Person, intentionally interfere with the relationship of the Advisor or its Affiliates with, or endeavor to entice away from the
Advisor or its Affiliates, any person who during the term of the Agreement is, or during the preceding one-year period, was a tenant,
co-investor, co-developer, joint venturer or other customer of the Advisor or its Affiliates.

 

     23. NOTICES. Any notice,
report or other communication required or permitted to be given hereunder shall be in writing unless some other method of giving
such notice, report or other communication is required by the Articles of Incorporation, the Bylaws, or accepted by the party to
whom it is given, and shall be given by being delivered by hand, by facsimile transmission, by courier or overnight carrier or
by registered or certified mail to the addresses set forth herein:

	 	 
	To the Directors and to the Company:	
        Bluerock Enhanced Multifamily Trust, Inc.

        Heron Tower

        70 East 55th Street, 9th Floor

        New York, NY 10022

        Telephone: (212) 843-1601

        Facsimile: (646) 278-4220

        Attention: R. Ramin Kamfar, 

             Chief Executive
        Officer

	 
	To the Operating Partnership:	
        Bluerock Enhanced Multifamily Holdings, L.P.

        c/o Bluerock Enhanced Multifamily Trust, Inc.

        Heron Tower

        70 East 55th Street, 9th Floor

        New York, NY 10022

        Telephone: (212) 843-1601

        Facsimile: (646) 278-4220

        Attention: R. Ramin Kamfar, 

             Chief Executive
        Officer

	 
	To the Advisor:	
        Bluerock Enhanced Multifamily Advisor, LLC

        Heron Tower

        70 East 55th Street, 9th Floor

        New York, NY 10022

        Telephone: (212) 843-1601

        Facsimile: (646) 278-4220

        Attention: R. Ramin Kamfar, 

             Chief Executive
        Officer

 

      Any party may at any time
give notice in writing to the other parties of a change in its address for the purposes of this Section 23.

 

     24. MODIFICATION. This
Agreement shall not be changed, modified, terminated, or discharged, in whole or in part, except by an instrument in writing signed
by the parties hereto, or their respective successors or assignees.

 

    	15

    	 

    

     25. SEVERABILITY. The provisions
of this Agreement are independent of and severable from each other, and no provision shall be affected or rendered invalid or unenforceable
by virtue of the fact that for any reason any other or others of them may be invalid or unenforceable in whole or in part.

 

     26. CONSTRUCTION. The provisions
of this Agreement shall be construed and interpreted in accordance with the laws of the State of Maryland.

 

     27. ENTIRE AGREEMENT. This
Agreement contains the entire agreement and understanding among the parties hereto with respect to the subject matter hereof, and
supersedes all prior and contemporaneous agreements, understandings, inducements and conditions, express or implied, oral or written,
of any nature whatsoever with respect to the subject matter hereof. The express terms hereof control and supersede any course of
performance or usage of the trade inconsistent with any of the terms hereof. This Agreement may not be modified or amended other
than by an agreement in writing.

 

     28. INDULGENCES, NOT WAIVERS.
Neither the failure nor any delay on the part of a party to exercise any right, remedy, power or privilege under this Agreement
shall operate as a waiver thereof, nor shall any single or partial exercise of any right, remedy, power or privilege preclude any
other or further exercise of the same or of any other right, remedy, power or privilege, nor shall any waiver of any right, remedy,
power or privilege with respect to any occurrence be construed as a waiver of such right, remedy, power or privilege with respect
to any other occurrence. No waiver shall be effective unless it is in writing and is signed by the party asserted to have granted
such waiver.

 

     29. GENDER. Words used
herein regardless of the number and gender specifically used, shall be deemed and construed to include any other number, singular
or plural, and any other gender, masculine, feminine or neuter, as the context requires.

 

     30. TITLES NOT TO AFFECT INTERPRETATION.
The titles of Sections and Subsections contained in this Agreement are for convenience only, and they neither form a part of this
Agreement nor are they to be used in the construction or interpretation hereof.

 

     31. EXECUTION IN COUNTERPARTS.
This Agreement may be executed in any number of counterparts, each of which shall be deemed to be an original as against any party
whose signature appears thereon, and all of which shall together constitute one and the same instrument. This Agreement shall become
binding when one or more counterparts hereof, individually or taken together, shall bear the signatures of all of the parties reflected
hereon as the signatories.

 

[Remainder of page intentionally left
blank]

 

    	16

    	 

    
 

 

IN WITNESS WHEREOF, the parties hereto have executed this Second
Amended and Restated Advisory Agreement as of the date and year first written above.

	 	 	 
	 	Bluerock Enhanced Multifamily Trust, Inc. 
	 	 
	 	By: 	 /s/ R. Ramin Kamfar
	 	Name: 	R. Ramin Kamfar 
	 	Title: 	Chief Executive Officer 
	 	 
	 	Bluerock Enhanced Multifamily Holdings, L.P. 
	 	 
	 	By: 	Bluerock Enhanced Multifamily Trust, Inc. its 
	 	 	General Partner 
	 	 
	 	By: 	 /s/ R. Ramin Kamfar
	 	Name:	R. Ramin Kamfar 
	 	Title: 	Chief Executive Officer 
	 	 
	 	 
	 	Bluerock Enhanced Multifamily Advisor, LLC  
	 	 	 
	 	 
	 	By: 	 /s/ R. Ramin Kamfar
	 	Name: 	  R. Ramin Kamfar
	 	Title: 	  Chief Executive Officer

 

    	17

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