Document:

EMPLOYMENT AGREEMENT

 

THIS EMPLOYMENT AGREEMENT
(this “Agreement”) is made and effective as of the 30th day of January, 2015, by and between
ROBERTS REALTY INVESTORS, INC., a Georgia corporation (the “Company”) and CHARLES S. ROBERTS (“Employee”).

 

WHEREAS, the Company,
Roberts Properties Residential, L.P, a Georgia limited partnership (together with the Company, the “Seller Parties”)
and A-III Investment Partners LLC, a Delaware limited liability company (the “Purchaser”) have entered into
a Stock Purchase Agreement (the “Stock Purchase Agreement”), dated as of November 19, 2014, pursuant to which,
among other things, (i) on the date hereof, the Purchaser has purchased from the Company, and the Company has issued and sold to
the Purchaser, 8,450,704 shares (the “Closing Shares”) of common stock, $.01 par value per share, of the
Company, (ii) the Company has agreed, in general terms and subject to the terms and conditions of the Stock Purchase Agreement
(including Section 1.3 thereof), to issue additional shares of Common Stock to the Purchaser if, as a result of a post-closing
true-up that takes into account, among other things, the actual aggregate net sale proceeds received by the Company for its four
Legacy Properties, the adjusted net asset value of the Company is less than the estimated aggregate net asset value determined
as of the Closing Date (the “True-up”), and (iii) the Company will grant to Purchaser a warrant to purchase
up to $38 million of additional shares of Common Stock at a purchase price per share that is determined after giving effect to
the True-Up; and

WHEREAS, as an essential
element of the willingness of the Seller Parties to agree to the True-up, the Stock Purchase Agreement provides that the Company
and Employee shall enter into this Agreement to provide that Employee shall supervise the disposition by the Seller Parties of
the Legacy Properties, subject to the terms and conditions of this Agreement; and

WHEREAS, Employee
is willing to assume the duties provided below to achieve the business goals of the Seller Parties and the Purchaser as reflected
in the True-up if and only if he has the broad authority described below;

NOW, THEREFORE,
in consideration of the respective representations, warranties, covenants and agreements set forth herein and for other good and
valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Parties hereto agree as follows:

	Condition of Employment; Title, Duties and Authority.

	 	(a)	The Company agrees to employ Employee, and Employee accepts such employment, subject to the terms and condition of this Agreement. Employee shall be an officer of the Company and shall have the title of Executive Vice President. Employee shall conduct a marketing process (which may, but shall not be required in all cases to, include the use of third party commercial real estate brokers) with respect to the sale of the following properties that are currently owned by the Company (the “Legacy Properties”): North Springs, Northridge, Highway 20 and Bradley Park. Employee shall be responsible for the marketing process, including positioning the properties for sale, identifying buyers, and negotiating terms of sale that are customary for similarly situated properties. All sales shall be subject to approval by the Board of Directors of the Company, including by a majority of the independent members of the Board of Directors of the Company, which approval shall not be unreasonably withheld or delayed, subject to their fiduciary duties. The Company acknowledges that Employee shall not be required to, and in fact will not, devote his full-time business attention to his duties and responsibilities hereunder. 

    	 

    	 

    	 	(b)	Employee shall keep the Company’s Chief Executive Officer informed, through telephone calls and emails, on a regular basis (and in any event no less frequently than bi-weekly), of the status of the marketing process with respect to the Legacy Properties. Employee shall provide copies to the Chief Executive Officer (and any other officer of the Company designated by the Chief Executive Officer) of the following written communications to the extent that Employee deems them to be material: term sheets, letters of intent, indications of interest, offers, due diligence requests, responses to due diligence requests and other material written communications with potential purchasers.

	 	(c)	Without the express prior written consent of the Chief Executive Officer and, if applicable, the prior approval of the Board of Directors, which consent or approval shall not be unreasonably withheld or delayed, subject to their fiduciary duties, Employee shall not be authorized to enter into, on behalf of the Company or any of its affiliates, any agreement, contract, term sheet, letter of intent, indication of interest or other binding or non-binding agreement with a potential buyer of a Legacy Property with respect to any potential sale of a Legacy Property, and Employee shall promptly provide the Chief Executive Officer copies of all such documents once they are signed by Employee on behalf of the Company. 

	 	(d)	Employee is expressly authorized, without the prior written consent of the Chief Executive Officer or the prior approval of the Board of Directors, to engage, on behalf of the Company or any of its affiliates, any service provider, vendor, legal counsel, consultant, civil engineer, environmental consultant, architect, land planner, broker, surveyor, photographer, marketing firm, website designer or developer or other third party as Employee deems appropriate, necessary or helpful in selling the Legacy Properties, so long as such engagements are on terms that are commercially reasonable and do not, when taken together with all other Selling Costs (as such term is defined on Exhibit A hereto), cause the aggregate Selling Costs to exceed $810,362 (the “Budgeted Selling Costs”). In that regard, Employee is authorized to retain, on behalf of the Company or any of its affiliates, without the need for any further approval by the Chief Executive Officer, the services of employees of Roberts Properties, Inc. and Roberts Properties Construction, Inc. (the “Roberts Companies”) to assist with the sale of the Legacy Properties, including assisting Employee in negotiating letters of intent and sales contracts in that regard, providing potential buyers with due diligence materials, responding to requests by potential buyers, reviewing the closing documents, closing the sales and other related matters. The Company shall pay for such services of employees of the Roberts Companies in accordance with the Company’s current reimbursement arrangement with the Roberts Companies, and such reimbursements shall be part of the Selling Costs. Employee shall promptly provide the Chief Executive Officer copies of all agreements engaging third parties as described in this Section 1(d) once they are signed by Employee on behalf of the Company. 

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    	 	(e)	Employee shall provide to the Company monthly statements of payment and reimbursement obligations and other Selling Costs incurred by Employee on behalf of the Company in accordance with this Agreement, together with copies of invoices, receipts and other reasonable documentation, and the Company shall pay or reimburse such amounts within 30 days after Employee provides such documentation to the Company. For the avoidance of doubt, Employee shall not have the right to bind the Company under any of the contractual arrangements referenced in Section 1(d) above or otherwise, to incur any costs or to obligate the Company to pay any amounts if and to the extent that any such contractual arrangements, costs or amounts, when taken together with all other Selling Costs, cause the aggregate Selling Costs to exceed the Budgeted Selling Costs. 

	 	(f)	The Company acknowledges that Employee’s business location shall be metropolitan Atlanta and, although Employee may be required to travel from time to time in the course of performing his duties for the Company, Employee shall not be required to relocate his residence or his place of business outside of the metropolitan Atlanta area. 

	 	2.	Term and Termination.

	 	(a)	Term; Termination. The term of this Agreement shall commence on the date hereof and, unless sooner terminated as hereinafter provided, shall continue until the first (1st) anniversary of the date hereof (the “Term”). Notwithstanding the foregoing, this Agreement shall terminate earlier than the first (1st) anniversary of the date hereof in the event any of the following occurs prior to such first (1st) anniversary: (i) the death of Employee or long-term disability of Employee; (ii) termination of this Agreement by the Company for Cause in accordance with Section 2(b) below; or (iii) the closing of the sale of all of the Legacy Properties. Even if all of the Legacy Properties have not been sold by the first (1st) anniversary of the date hereof, this Agreement and Employee’s employment with the Company shall nonetheless terminate on the first (1st) anniversary of the date hereof, and the Company’s other officers shall immediately assume responsibility for the disposition of any remaining Legacy Properties.

 

	 	(b)	Termination for Cause. The Company shall have the right to terminate Employee’s employment at any time prior to expiration of the Term upon delivery of written notice of termination for Cause (as defined below) to Employee (which notice shall specify in reasonable detail the basis upon which such termination is made), such employment to terminate immediately upon delivery of such notice (provided that Employee has received any prior notice and opportunity to cure required by this Section 2(b)), unless otherwise specified by the Board of Directors of the Company, if a majority of the independent members of the Board of Directors determines that Employee’s employment hereunder shall be terminated for Cause. “Cause” shall be deemed to have occurred if Employee: (i) has misappropriated, stolen or embezzled funds or property from the Company or an affiliate of the Company, (ii) has been convicted of or entered a plea of “nolo contendere” for a felony which, in the reasonable opinion of a majority of the independent members of the Board of Directors, brings Employee or the Company into disrepute or is likely to cause material harm to the Company’s (or any affiliate of the Company) business, financial condition or prospects, (iii) has materially violated or breached any material provision of this Agreement and failed to cure such breach or violation to the reasonable satisfaction of the Board of Directors within 30 days after receipt of written notice of such breach or violation, or (iv) has violated any material law or regulation.

 

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    	 	(c)	Effects of Termination. Upon the expiration of the Term or the earlier termination of Employee’s employment hereunder, all rights and obligations of the parties arising under this Agreement shall immediately cease, except as follows:

 

	 	(i)	if this Agreement is terminated prior to expiration of the one-year Term because of (1) the death of Employee or long-term disability of Employee; or (2) the earlier closing of the sale of all of the Legacy Properties, the Company shall (A) remain obligated to continue to pay the remaining amount of Employee’s Base Salary (as defined in Section 3(a) below) to Employee or Employee’s estate, as applicable, as if he had been employed through the first (1st) anniversary of the date hereof, which amount shall be paid to Employee or his estate, as applicable, in a lump sum not later than thirty (30) days after the termination of this Agreement, (B) promptly reimburse Employee under Section 3(b) below for all reasonable business expenses incurred through the date of termination of this Agreement and (C) promptly reimburse the Roberts Companies for all amounts that were incurred under, and in accordance with the terms and conditions of, Section 1(d) above through the date of termination of this Agreement; and

 

	 	(ii)	Sections 4, 5, 6, 7 and 8 of this Agreement shall survive its termination or expiration.

 

	 	3.	Compensation and Expenses.

	 	(a)	Base Salary. During the Term, the Company shall pay Employee a base salary at the rate of $250,000 per annum (the “Base Salary”), payable on a monthly basis in equal monthly installments in accordance with customary payroll policies and procedures, including withholding requirements.

	 	(b)	Business Expenses. During the Term, Employee shall be authorized to incur, and shall be reimbursed for, all reasonable out-of-pocket business expenses incurred by Employee in connection with the performance of his duties and responsibilities under this Agreement. “Reasonable” is defined as that which enables Employee to perform his duties for the Company (including meals and travel) comfortably but not extravagantly. Employee shall provide to the Company receipts or other reasonable documentation of such expenses for any individual expenditure over $25, and the Company shall reimburse Employee for such expenses promptly and in any event not later than 30 days after Employee provides such documentation to the Company. Employee shall provide the Chief Executive Officer with a monthly written summary of all reimbursable business expenses incurred by Employee. 

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    	 	(c)	Employee Compensation and Related Expenses Not Part of Budgeted Selling Costs. Employee and the Company acknowledge that the Base Salary and related employment expenses incurred by the Company in connection with the employment of the Employee under this Agreement, and all business expenses incurred personally by Employee that are payable or reimbursable by the Company under this Agreement, shall not be Selling Costs that count towards the aggregate Budgeted Selling Costs under this Agreement, but such costs and expenses shall be deemed to be Selling Costs for purposes of the True-Up under the Stock Purchase Agreement. (Payments to the Roberts Companies shall not be deemed to be business expenses incurred personally by Employee.)

	Severability. In the event that any portion of this Agreement
is determined to be invalid or unenforceable for any reason, such determination shall in no way affect the enforceability of other
portions of the Agreement, which shall remain in full force and effect. To the extent that a court or other body construing this
Agreement can render it enforceable by modifying any clause, while continuing to preserve the intent of the parties to protect
their legitimate business interests, then the parties intend that the court or other body shall do so.
	Assignment. The rights and obligations of the Company
under this Agreement shall inure to the benefit of the successors and permitted assigns of the Company. Neither party may assign
its rights or obligations under this Agreement without the prior written consent of the other party; provided, however,
that the Company may assign its rights and obligations hereunder to any successor in connection with any sale, transfer or other
disposition of all or substantially all of the Company’s assets, stock, or business, whether by merger, share exchange, asset
sale, consolidation or otherwise.
	Governing Law. The validity and effect of this Agreement
and the rights and obligations of the parties hereto shall be construed and determined in accordance with Georgia law excluding
the “conflicts of law” rules thereof. Each party hereby expressly consents to the exclusive jurisdiction and venue
of the state and federal courts located in Atlanta, Georgia for any lawsuit filed by either party arising from or relating to this
Agreement.
	Waiver of Jury Trial. The parties waive any right to
a trial by jury in any action or proceeding to enforce or defend any rights under this Agreement or under any instrument, document
or agreement delivered in connection herewith or hereafter and agree that any such action or proceeding shall be tried before a
court and not before a jury.

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    	Entire Agreement. This Agreement contains the entire
agreement of the parties with respect to the subject matter hereof and supersedes and merges all prior agreements and discussions
between the parties in that regard. This Agreement may not be changed or amended orally but only by an agreement in writing signed
by both the parties.
	Opportunity to Consult Counsel. Employee acknowledges
receipt of a copy of this Agreement prior to the date hereof and also acknowledges having had ample time to consult counsel of
Employee’s choice concerning the terms and conditions of this Agreement.
	Counterparts. This Agreement may be executed in one or
more counterparts, all of which shall be considered one and the same agreement, and shall become effective when one or more counterparts
have been signed by each party and delivered to each other party. Copies of executed counterparts transmitted by telecopy, telefax
or other electronic means shall be considered original executed counterparts for purposes of this Section, provided that receipt
of copies of such counterparts is confirmed.

[Signatures are on the following page]

 

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    IN WITNESS WHEREOF, the Company and Employee
have duly executed this Agreement as of the day and year first written above.

 

THE COMPANY:

 

ROBERTS REALTY INVESTORS, INC.

 

 

 

	By: 	/s/ Charles S. Roberts	 	 

Name: Charles S. Roberts

Title: CEO and President

 

Address for Notices:

c/o Avenue Capital Group

399 Park Avenue

New York, New York 10022

Attention: Edward Gellert

Telephone: 212-850-7534

Email: egellert@avenuecapital.com 

 

 

EMPLOYEE:

 

CHARLES S. ROBERTS

 

 

 

	   /s/ Charles S. Roberts	 	 

 Signature

 

 

Address for Notices:

Charles S. Roberts

375 Northridge Road

Suite 330

Atlanta, Georgia 30350

Telephone: (770) 394-6000

Email: cr@robertsproperties.com

 

[Signature page to
Employment Agreement]

 

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    Exhibit A

SELLING
COSTS

 

Defined terms used
in this Exhibit A and not defined shall have the meanings set forth in the Employment Agreement to which it is attached.

For purposes of this
Exhibit A and the Employment Agreement, “Selling Costs” means (i) sales commissions, and (ii) all costs
incurred by the Company or by Employee on behalf of the Company in connection with the performance of Employee’s duties under
the Employment Agreement and the marketing and sale of the Legacy Properties (excluding Base Salary, reimbursable business expenses
incurred by Employee, and other employment expenses incurred by the Company in connection with the employment of Employee), including
but not limited to (A) costs incurred in connection with the engagement of any service provider, vendor, legal counsel, consultant,
civil engineer, environmental consultant, architect, land planner, broker, surveyor, photographer, marketing firm, website designer
or developer or other third party, (B) transfer taxes, (C) all costs incurred by the Company in connection with the services
of employees of the Roberts Companies to assist with the sale of the Legacy Properties and (D) miscellaneous sales and closing
costs.

 

    	8REGISTRATION RIGHTS AGREEMENT

 

 

REGISTRATION
RIGHTS AGREEMENT, dated as of January 30, 2015 (this “Agreement”), between ROBERTS REALTY INVESTORS,
INC., a Georgia corporation (the “Company”) and A-III Investment Partners LLC, a Delaware limited
liability company (the “Purchaser”).

WHEREAS, the Purchaser
has acquired on the date hereof an aggregate of 8,450,704 shares
(the “Initial Shares”) of the Company’s common stock, $0.01 par value per share (“Common Stock”)
pursuant to the terms of a Stock Purchase Agreement dated as of November 19, 2014 between the Company and the Purchaser (the “Purchase
Agreement”); and

WHEREAS, pursuant
to Section 1.3 of the Purchase Agreement, the Company has agreed, under certain circumstances, to issue additional shares of Common
Stock (the “True-Up Shares”) to Purchaser in a Post-Closing Issuance (as defined in the Purchase Agreement);
and

WHEREAS, pursuant
to the Purchase Agreement, the Company has granted to the Purchaser a warrant to purchase additional shares of Common Stock (the
“Warrant Shares” and, together with the Initial Shares and the True-Up Shares, the “Shares”)
pursuant to a Warrant Agreement dated as of the date hereof between the Company and the Purchaser (the “Warrant Agreement”);
and

WHEREAS, pursuant
to the Purchase Agreement, the Company has agreed to grant certain registration rights, subject to the terms and conditions set
forth in this Agreement, with respect to the Shares;

WHEREAS, the Company
and the Purchaser wish to set forth their agreement with respect to certain rights and obligations regarding the registration of
the Shares.

In consideration
of the foregoing and of the mutual agreements contained herein and in the Purchase Agreement, the Company and the Purchaser hereby
agree as follows:

	 	1.	DEFINITIONS.

As used in this
Agreement, the following capitalized defined terms shall have the following meanings:

“Affiliate”
means, with respect to any Person, (i) each Person that, directly or indirectly, owns or controls, whether beneficially or
as a trustee, guardian or other fiduciary, 25% or more of the capital stock having ordinary voting power in the election of directors
of such Person, (ii) each Person that controls, is controlled by or is under common control with such Person or any Affiliate
of such Person, or (iii) each of such Person’s executive officers and directors. For the purpose of this definition,
“control” of a Person shall mean the possession, directly or indirectly, of the power to direct or cause the direction
of its management or policies, whether through the ownership of voting securities, by contract or otherwise.

 

    	 

    	 

    “Board
of Directors” means the board of directors of the Company from time to time.

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

“Common
Stock” means the shares of the Company’s common stock, $0.01 par value per share.

“Company”
has the meaning specified in the recitals to this Agreement.

“Controlling
Person” has the meaning specified in Section 7(a).

“End of
Suspension Notice” has the meaning specified in Section 6(b).

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

“Fully
Diluted Basis” means at any date as of which the number of shares of Common Stock is to be determined, on a basis including
all shares of Common Stock outstanding at such date and the maximum shares of Common Stock issuable in respect of Common Stock
Equivalents (giving effect to the then current respective conversion prices) and other rights to purchase (directly or indirectly)
shares of Common Stock or Common Stock Equivalents, outstanding on such date, to the extent such rights to convert, exchange or
exercise thereunder are presently exercisable. For purposes of this definition, “Common Stock Equivalents” means any
security or obligation which is by its terms convertible into or redeemable for shares of Common Stock (including any units of
limited partnership interest in Roberts Properties Residential, L.P.) and any option, warrant or other subscription or purchase
right with respect to Common Stock.

“Holder”
shall mean each owner of any Registrable Securities from time to time.

“Indemnified
Party” has the meaning specified in Section 7(c).

“Indemnifying
Party” has the meaning specified in Section 7(c).

“Liabilities”
has the meaning specified in Section 7(a).

“Material
Adverse Change” or “Material Adverse Effect” shall mean any event, circumstance, change or effect that would
reasonably be likely, individually or in the aggregate, to have a material adverse effect on the assets, business, operations,
earnings, properties or condition (financial or otherwise), of the Company and its subsidiaries taken as a whole; provided, however,
that none of the following shall be deemed to constitute or shall be taken into account in determining whether there has been a
Material Adverse Effect: any event, circumstance, change or effect arising out of or attributable to (a) changes in the economy
or financial markets, including, prevailing interest rates and market conditions, generally in the United States or that are the
result of acts of war or terrorism, or (b) changes that are caused by factors generally affecting the industry in which the Company
and its subsidiaries operate.

 

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    “Person”
means any individual, corporation, partnership, joint venture, association, joint stock company, trust, fund, unincorporated association
or organization or government or other agency or political subdivision thereof.

“Piggyback
Registrations” has the meaning specified in Section 2.2(a).

“Purchase
Agreement” has the meaning specified in the recitals.

“Purchaser
Indemnitee” has the meaning specified in Section 7(a).

“Registrable
Securities” means the Initial Shares purchased by the Purchaser in connection with the Purchase Agreement, any True-Up
Shares issued by the Company to the Purchaser pursuant to the Purchase Agreement and the Warrant Shares issued or issuable to the
Purchaser pursuant to the Warrant Agreement, in each case including upon the transfer thereof by the original Holder or any subsequent
Holder, and any shares or other securities issued in respect of such shares of Common Stock by reason of or in connection with
any stock dividend, stock distribution, stock split, purchase in any rights offering or in connection with any exchange for or
replacement of such shares of Common Stock or any combination of shares, recapitalization, merger or consolidation, or any other
equity securities issued pursuant to any other pro rata distribution with respect to such shares of Common Stock. Any Registrable
Security will cease to be a Registrable Security when: (a) a registration statement covering such Registrable Security has been
declared effective by the Commission and the Registrable Security has been disposed of pursuant to such effective registration
statement, (b) the Registrable Security is sold under circumstances in which all of the applicable conditions of Rule 144 (or any
similar provisions then in force) under the Securities Act are met or (c) the Registrable Security has been otherwise transferred,
the Company has delivered a new certificate or other evidence of ownership for the Registrable Security not bearing a legend restricting
further transfer, and the Registrable Security may be resold without subsequent registration under the Securities Act.

“Registration
Expenses” means all expenses incident to the Company’s performance of or compliance with this Agreement, including
without limitation all Commission and stock exchange or NYSE registration and filing fees and expenses, fees and expenses of compliance
with securities or blue sky laws (including without limitation reasonable fees and disbursements of one counsel for all underwriters
or holders as a group in connection with blue sky qualifications of the Registrable Securities), rating agency fees, printing expenses,
messenger, telephone and delivery expenses, the fees and expenses incurred in connection with the listing of the securities to
be registered on each securities exchange or national market system on which similar securities issued by the Company are then
listed, fees and disbursements of counsel for the Company and all independent certified public accountants (including the expenses
of any annual audit, special audit and “cold comfort” letters required by or incident to such performance and compliance),
securities laws liability insurance (if the Company so desires), the fees and expenses of any “qualified independent underwriter”
that is required to be retained by any holder of Registrable Securities pursuant to the rules and regulations of the Financial
Industry Regulatory Authority (“FINRA”) customarily paid by issuers or sellers of securities (but not including
any underwriting discounts or commissions attributable to the sale of Registrable Securities by the sellers of Registrable Securities)
and the reasonable fees of counsel selected pursuant to Section 6 hereof by the Holders in connection with each such registration.

 

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    “Registration
Statement” means a registration statement of the Company that covers the resale of Registrable Securities pursuant to
the provisions of this Agreement, including any prospectus included in such registration statement, amendments and supplements
to such registration statement or prospectus, including pre- and post-effective amendments, all exhibits thereto and all material
incorporated by reference or deemed to be incorporated by reference, if any, in such registration statement.

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

“Shelf
Registration Statement” has the meaning specified in Section 2.1(a).

“Suspension
Event” has the meaning specified in Section 6(b).

“Suspension
Notice” has the meaning specified in Section 6(b).

“Underwritten
Offering” means a sale of securities of the Company to an underwriter or underwriters for reoffering to the public.

	 	2.	REGISTRATION RIGHTS.

2.1             
MANDATORY REGISTRATION RIGHTS.

(a)   
As set forth in Section 5 hereof, the Company agrees to file on or before the 180th day after the date of
this Agreement a shelf Registration Statement on Form S-11 or such other form under the Securities Act then available to the Company
providing for the resale of any Registrable Securities pursuant to Rule 415 from time to time by the Holders (a “Shelf
Registration Statement”). The Company shall use its commercially reasonable best efforts to cause such Shelf Registration
Statement to be declared effective by the Commission as soon as practicable thereafter, and, for this purpose, the Company shall
be entitled to consider the advice of the managing underwriter(s) of a public offering of the Company’s Common Stock which
is then pending as to the effect that the effectiveness of the Shelf Registration Statement could reasonably be expected to have
on the marketing of the public offering. Any Shelf Registration Statement shall provide for the resale from time to time, and pursuant
to any method or combination of methods legally available (including, without limitation, an Underwritten Offering, a direct sale
to purchasers or a sale through brokers or agents, which may include sales over the internet) by the Holders of any and all Registrable
Securities.

(b)  
PRIORITY ON SHELF REGISTRATION STATEMENT. The Company will not include in any Shelf Registration Statement any securities
that are not Registrable Securities without the prior written consent of the Holders of at least 66.66% of the Registrable Securities.
If the managing underwriters of an underwritten offering under the Shelf Registration Statement advise the Company in writing that
in their opinion the number of Registrable Securities and, if permitted hereunder, other securities requested to be included in
such offering exceeds the number of Registrable Securities and other securities, if any, which can be sold therein without adversely
affecting the marketability of the offering, the Company will include in such registration, (i) first, the Registrable Securities;
and (ii) second, other securities, if any, requested to be included in such registration, pro rata among the holders of such
other securities, on the basis of the number of shares of other securities owned by each such holder and requested to be included
therein.

 

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    (c)   
SELECTION OF UNDERWRITERS. Subject to an engagement agreement to which the Company is a party, the Company shall
have the right to select the investment banker or bankers, underwriters and managers to administer any Underwritten Offering under
a Shelf Registration Statement; PROVIDED, HOWEVER, that such investment banker or bankers, underwriters and managers shall be reasonably
satisfactory to the Holders of at least 66.66% of the Registrable Securities. All Holders proposing to distribute their Registrable
Securities through such Underwritten Offering shall enter into an underwriting agreement in customary form with the managing underwriters
selected for such underwriting and furnish to the Company such information in writing as the Company may reasonably request for
inclusion in the Shelf Registration Statement; provided, however, that no Holder
shall be required to make any representations or warranties to or agreements with the Company or the managing underwriters other
than representations, warranties or agreements as are customary and reasonably requested by the managing underwriters. If any Holder
disapproves of the terms of such Underwritten Offering, such Holder may elect to withdraw therefrom by written notice to the Company
and the managing underwriter delivered at least ten (10) business days prior to the effective date of the Shelf Registration Statement.
Any Registrable Securities excluded or withdrawn from such Underwritten Offering shall be excluded and withdrawn from the Shelf
Registration Statement.

2.2             
DEMAND REGISTRATION ON FORM S-3

(a)   
If (i) the Company shall receive a written request (specifying that it is being made pursuant to this subsection) from one
or more Holders that the Company file a registration statement on Form S-3 (or any successor form to Form S-3 regardless of its
designation) for a public offering of Registrable Securities the reasonably anticipated aggregate price to the public of which
would equal or exceed $5,000,000, and (ii) the Company is a registrant entitled to use Form S-3 (or any successor form to Form
S-3) to register such securities, then the Company shall promptly notify all other Holders of such request and shall use its commercially
reasonable best efforts to cause all Registrable Securities that Holders have requested be registered to be registered on Form
S-3 (or any successor form to Form S-3).

 

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    (b)  
Notwithstanding the foregoing, (i) the Company shall not be obligated to effect a registration pursuant to this subsection
during the period starting with the date sixty (60) days prior to the Company’s estimated date of filing of, and ending on
a date six (6) months following the effective date of, a registration statement pertaining to an underwritten public offering of
securities for the account of the Company; provided, that the Company is actively employing in good faith its best efforts to cause
such registration statement to become effective and that the Company’s estimate of the date of filing such registration statement
is made in good faith; (ii) the Company shall not be obligated to effect a registration pursuant to this subsection within six
(6) months after the effective date of a prior registration under this Section; and (iii) if the Company shall furnish to the Holders
a certificate signed by the President of the Company stating that in the good faith judgment of the Board of Directors it would
be seriously detrimental to the Company or its shareholders for a registration statement to be filed in the near future, then the
Company’s obligation to use its best efforts to file a registration statement shall be deferred for a period not to exceed
90 days; provided, however, that the Company shall not be permitted to so defer its obligation more than once in any 12-month period.

(c)   
The Holders’ rights to registration under this Section 2.2 are in addition to, and not in lieu of, their rights to
registration under any other section of this Agreement.

2.3             
RIGHT TO PIGGYBACK REGISTRATION.

(a)   
If at any time following the date of this Agreement and prior to the registration of Registrable Securities pursuant to
Section 2.1, the Company proposes for any reason to register any shares of Common Stock under the Securities Act (other than pursuant
to a registration statement on Form S-4 or Form S-8 (or a similar or successor form)) with respect to an offering of Common Stock
by the Company for its own account or for the account of any of its stockholders, it shall at each such time promptly give written
notice to the Holders of its intention to do so (but in no event less than 30 days before the anticipated filing date) and include
in such registration all Registrable Securities with respect to which the Company has received written requests for inclusion therein
within 15 days after receipt of the Company’s notice (a “Piggyback Registration”). Such notice shall offer
the Holders the opportunity to register such number of shares of Registrable Securities as each Holder may request and shall indicate
the intended method of distribution of such Registrable Securities.

(b)  
The Company shall use its commercially reasonable best efforts to cause the managing underwriter or underwriters of a proposed
Underwritten Offering to permit the shares of Registrable Securities requested to be included in the Registration Statement for
such offering to be included (on the same terms and conditions as the Common Stock of the Company included therein to the extent
appropriate). Notwithstanding the foregoing, if in the reasonable judgment of the managing underwriter or underwriters due to the
size of the offering which the Company or such other persons or entities intends to make, the success of the offering would be
adversely affected by inclusion of the Registrable Securities requested to be included, then, if the offering is by the Company
for its own account or is an offering by other holders registering shares of Common Stock of the Company pursuant to demand registration
rights, then the number of shares of Common Stock to be offered for the accounts of Holders and other holders registering shares
of Common Stock of the Company pursuant to similar piggyback registration rights shall be reduced pro rata based on the relative
percentage ownership of all shares of Common Stock then outstanding owned by the Holders and such other holders to the extent necessary
to reduce the total number of shares of Common Stock to be included in such offering to the amount recommended by such managing
underwriter or underwriters.

 

    	6

    	 

     

	 	3.	HOLDBACK AGREEMENTS.

(a)   
The Holders agree not to effect any public sale or distribution (including sales pursuant to Rule 144 under the Securities
Act) of equity securities, including, without limitation, the Shares, of the Company, or any securities convertible into or exchangeable
or exercisable for such securities, during the seven days prior to and the 90-day period beginning on the effective date of any
Shelf Registration Statement or Piggyback Registration for a public offering to be underwritten on a firm commitment basis (except
as part of such underwritten registration), unless the investment bankers or underwriters managing the public offering otherwise
agree.

(b)  
The Company agrees to use its commercially reasonable best efforts to cause each of its directors and executive officers
and each holder of at least 5% (on a Fully Diluted Basis) of the Company’s equity securities, including, without limitation,
Common Stock, or any securities convertible into or exchangeable or exercisable for such securities, purchased from the Company
at any time after the date of this Agreement (other than in a registered public offering or distribution or securities issued pursuant
to the Company’s 2006 Restricted Stock Plan, as amended) to agree not to effect any public sale or distribution (including
sales pursuant to Rule 144 under the Securities Act) of any such securities during the period described in clause (a) above
(except as part of such underwritten registration), unless the underwriters managing the public offering or distribution otherwise
agree.

	 	4.	Rule 144 and 144a reporting.

With a view to making
available the benefits of certain rules and regulations of the Commission that may permit the sale of the Registrable Securities
to the public without registration, the Company agrees to, so long as any Holder owns any Registrable Securities:

(a)   
use its commercially reasonable best efforts to make and keep public information available, as those terms are understood
and defined in Rule 144(c) under the Securities Act;

(b)  
use its commercially reasonable best efforts to file with the Commission in a timely manner all reports and other documents
required to be filed by the Company under the Securities Act and the Exchange Act; and

(c)   
furnish to any Holder promptly upon request (i) a written statement by the Company that it has complied with the reporting
requirements of Rule 144 or that it qualifies as a registrant whose securities may be resold pursuant to Form S-3 (at any time
after it so qualifies), (ii) a copy of the most recent annual or quarterly report of the Company and such other reports and documents
of the Company and (iii) such other information as a Holder may reasonably request in availing itself of any rule or regulation
of the Commission allowing a Holder to sell any such Registrable Securities without registration or pursuant to such form.

 

    	7

    	 

    5.                 
REGISTRATION PROCEDURES.

Whenever the Holders
have requested that any Registrable Securities be registered pursuant to this Agreement, the Company will use its commercially
reasonable best efforts to effect the registration and the sale of such Registrable Securities in accordance with the intended
method of disposition thereof, and pursuant thereto the Company will as expeditiously as reasonably practicable:

(a)   
Prepare and file with the Commission a Registration Statement with respect to such Registrable Securities and use its commercially
reasonable best efforts to cause such Registration Statement to become effective (provided that before filing a Registration Statement
or prospectus or any amendments or supplements thereto, the Company will furnish to counsel selected by the Holders copies of all
such documents proposed to be filed);

(b)  
Subject to Section 7, prepare and file with the Commission such amendments and supplements to such Registration Statement
and the prospectus used in connection therewith as may be necessary to keep such Registration Statement effective for a period
of not less than one year and comply with the provisions of the Securities Act with respect to the disposition of all securities
covered by such Registration Statement during such period in accordance with the intended methods of disposition by the sellers
thereof set forth in such Registration Statement;

(c)   
Furnish to the Holders such number of copies of such Registration Statement, each amendment and supplement thereto, the
prospectus included in such Registration Statement (including each preliminary prospectus) and such other documents as such seller
may reasonably request in order to facilitate the disposition of the Registrable Securities;

(d)  
Use its commercially reasonable best efforts to register or qualify such Registrable Securities under such other securities
or blue sky laws of such jurisdictions of the United States of America as the Holders reasonably request and shall maintain such
qualification in effect so long as required; (provided that the Company will not be required to (i) qualify generally to do
business in any jurisdiction where it would not otherwise be required to qualify but for this subsection, (ii) subject itself
to taxation in any such jurisdiction or (iii) consent to general service of process (i.e., service of process which
is not limited solely to securities law violations) in any such jurisdiction);

(e)   
notify each Holder promptly and, if requested by any Holder, confirm such advice in writing (i) when a Registration
Statement registering the Registrable Securities has become effective and when any post-effective amendments and supplements thereto
become effective, (ii) of the issuance by the Commission or any state securities authority of any stop order suspending the
effectiveness of a Registration Statement or the initiation of any proceedings for that purpose, (iii) of any request by the
Commission or any other federal, state or foreign governmental authority for amendments or supplements to a Registration Statement
or related prospectus or for additional information, and (iv) of the happening of any event during the period a Registration
Statement is effective as a result of which such Registration Statement covering the Registrable Securities or the related prospectus
or any document incorporated by reference therein contains any untrue statement of a material fact or omits to state any material
fact required to be stated therein or necessary to make the statements therein not misleading (which information shall be accompanied
by an instruction to suspend the use of the prospectus until the requisite changes have been made);

 

    	8

    	 

    (f)   
Use its commercially reasonable best efforts to cause all such Registrable Securities to be listed on the same securities
exchange on which securities of the same class are then listed;

(g)  
Provide a transfer agent and registrar for all such Registrable Securities not later than the effective date of such Registration
Statement;

(h)  
Enter into such customary agreements (including underwriting agreements in customary form) and take all such other reasonable
actions as the Holders or the underwriters, if any, reasonably request in order to expedite or facilitate the disposition of such
Registrable Securities;

(i)    
Use its commercially reasonable best efforts to make available, subject to any confidentiality agreements reasonably requested
by the Company, for inspection by one representative appointed by the Holders any underwriter participating in any disposition
pursuant to such Registration Statement and any attorney, accountant or other agent retained by such representative of the Holders
or underwriter, all financial and other records, pertinent corporate documents and properties of the Company, and cause the Company’s
officers, directors, employees and independent accountants to supply all information reasonably requested by any Holder, such underwriter,
attorney, accountant or agent in connection with such Registration Statement;

(j)    
Otherwise use its commercially reasonable best efforts to comply with all applicable rules and regulations of the Commission,
and, if required, make available to its security holders, as soon as reasonably practicable, an earnings statement covering the
period of at least twelve months beginning with the first day of the Company’s first full calendar quarter after the effective
date of the Registration Statement, which earnings statement shall satisfy the provisions of Section 11(a) of the Securities
Act and Rule 158 thereunder;

(k)  
use its commercially reasonable best efforts to avoid the issuance of any stop order suspending the effectiveness of a Registration
Statement, or of any order suspending or preventing the use of any related prospectus or suspending the qualification of any equity
securities, including, without limitation, the Common Stock, included in such Registration Statement for sale in any jurisdiction;
in the event of the issuance of any stop order suspending the effectiveness of a Registration Statement, or of any order suspending
or preventing the use of any related prospectus or suspending the qualification of any equity securities, including, without limitation,
the Common Stock, included in such Registration Statement for sale in any jurisdiction, the Company will use its commercially reasonable
best efforts promptly to obtain the withdrawal of such order;

 

    	9

    	 

    (l)    
Use its commercially reasonable best efforts to cause such Registrable Securities covered by such Registration Statement
to be registered with or approved by such other governmental agencies or authorities as may be reasonably necessary to enable the
sellers thereof to consummate the disposition of such Registrable Securities;

(m)
Except as provided in Section 7, upon the occurrence of any event contemplated by Section 5(e)(iv) of this Agreement, use
its commercially reasonable best efforts to promptly prepare a supplement or post-effective amendment to a Registration Statement
or the related prospectus or any document incorporated therein by reference or file any other required document so that, as thereafter
delivered to the purchasers of the Registrable Securities, such prospectus will not contain any untrue statement of a material
fact or omit to state a material fact required to be stated therein or necessary to make the statements therein, in the light of
the circumstances under which they were made, not misleading, and, upon request, promptly furnish to each requesting Holder a reasonable
number of copies each such supplement or post-effective amendment;

(n)  
if requested by the managing underwriter(s), if any, or any Holders of Registrable Securities (i) as promptly as practicable
incorporate in a prospectus supplement or post-effective amendment relating to the Registrable Securities such material information
as the managing underwriter(s), if any, or such Holders indicate in writing relates to them or that they reasonably request be
included therein and (ii) use its commercially reasonable best efforts to make all required filings of such prospectus supplement
or such post-effective amendment as soon as practicable after the Company has received written notification of the matters to be
incorporated in such prospectus supplement or post-effective amendment;

(o)  
in the case of an Underwritten Offering, use its commercially reasonable best efforts to furnish to each Holder of Registrable
Securities covered by such Registration Statement and the underwriters a signed counterpart, addressed to each such Holder and
the underwriters, of: (i) an opinion of counsel for the Company, dated the date of each closing under the underwriting agreement,
reasonably satisfactory to such Holder and the underwriters; and (ii) a “comfort” letter, dated the effective
date of such Registration Statement and the date of each closing under the underwriting agreement, signed by the independent public
accountants who have certified the Company’s financial statements included in such Registration Statement, covering substantially
the same matters with respect to such Registration Statement (and the prospectus included therein) and with respect to events subsequent
to the date of such financial statements, as are customarily covered in accountants’ letters delivered to underwriters in
underwritten public offerings of securities and such other financial matters as such Holder and the underwriters may reasonably
request;

(p)  
provide a CUSIP number, if necessary, for all Registrable Securities, not later than the effective date of the Registration
Statement; and

(q)  
if requested by any holder of Registrable Securities, obtain a “cold comfort” letter from the Company’s
independent registered public accounting firm in customary form and covering such matters of the type customarily covered by “cold
comfort” letters as the Purchaser reasonably requests.

 

    	10

    	 

    It shall be a condition
precedent to the obligation of the Company to take any action pursuant to this Agreement in respect of the securities which are
to be registered at the request of the Holders that the Holders shall furnish to the Company such information regarding the Registrable
Securities held by the Holders and the intended method of disposition thereof as the Company shall reasonably request in connection
with such registration.

	 	6.	REGISTRATION EXPENSES.

(a)   
Except as otherwise expressly provided in this Agreement, all Registration Expenses will be borne by the Company. To the
extent Registration Expenses are not required to be paid by the Company pursuant to this Agreement, each holder of securities included
in any registration or qualification hereunder will pay those Registration Expenses allocable to the registration or qualification
of such holders’ securities so included, and any Registration Expenses not so allocable will be borne by all sellers of securities
included in such registration in proportion to the aggregate selling price of the securities to be so registered or qualified.

(b)  
Except as otherwise expressly provided in this Agreement, in connection with each Shelf Registration Statement and any Piggyback
Registration, the Company will reimburse the Holders covered by such Registration Statement for the reasonable fees and disbursements
of one United States legal counsel, which counsel shall be selected (i) in the case of a Shelf Registration Statement by the Holders
holding a majority of the Registrable Securities, and (ii) in all other cases, by the Holders of a majority of the Registrable
Securities, and in each case in consultation with the Company.

	 	7.	Black out period.

(a)   
Subject to the provisions of this Section 7, the Company shall have the right, but not the obligation, from time to
time to suspend the use of the Registration Statement, following the effectiveness of a Registration Statement (and the filings
with any international, federal or state securities commissions), the Company, by written notice to the Holders, may direct the
Holders to suspend sales of the Registrable Securities pursuant to a Registration Statement for such times as the Company reasonably
may determine is necessary and advisable if a majority of the independent members of the Board of Directors of the Company
shall have determined in good faith, after the advice of counsel, that the Company is required by law, rule or regulation, or that
it is in the best interests of the Company, to (i) supplement the prospectus or (ii) file a post-effective amendment to the Registration
Statement in the case of (i) or (ii) to incorporate information into the Registration Statement for the purpose of (1) including
in the Registration Statement any prospectus required under Section 10(a)(3) of the Securities Act; (2) reflecting in the
prospectus any facts or events arising after the effective date of the Registration Statement (or of the most-recent post-effective
amendment) that, individually or in the aggregate, represents a fundamental change in the information set forth therein; or (3) including
in the prospectus any material information with respect to the plan of distribution not disclosed in the Registration Statement
or any material change to such information. In no event may a suspension in the case of (i) last for more than five (5) business
days in any singular instance and in the case of (i) and (ii) cumulatively last for more than an aggregate of ninety (90) days
in any rolling twelve (12) month period commencing on the Closing Date or for more than an aggregate of sixty (60) days in any
rolling ninety (90) day period, except as a result of a refusal by the Commission to declare any post-effective amendment to the
Registration Statement effective after the Company shall have used all commercially reasonable best efforts to cause such post-effective
amendment to be declared effective, in which case the suspension shall be terminated immediately following the effective date of
the post-effective amendment to the Registration Statement. Upon the occurrence of any such suspension, the Company shall use its
commercially reasonable best efforts to cause the Registration Statement to become effective or to promptly amend or supplement
the Registration Statement on a post-effective basis or to take such action as is necessary to make resumed use of the Registration
Statement compatible with the Company’s best interests, as applicable, so as to permit the Holders to resume sales of the
Registrable Securities as soon as possible.

 

    	11

    	 

    (b)  
In the case of an event that causes the Company to suspend the use of a Registration Statement (a “Suspension Event”),
the Company shall give written notice (a “Suspension Notice”) to the Holders to suspend sales of the Registrable
Securities pursuant to the Registration Statement and such notice shall state generally the basis for the notice and that such
suspension shall continue only for so long as the Suspension Event or its effect is continuing and the Company is using its commercially
reasonable best efforts and taking all reasonable steps to terminate suspension of the use of the Registration Statement as promptly
as possible. No Holder shall effect any sales of the Registrable Securities pursuant to such Registration Statement (or such filings)
at any time after it has received a Suspension Notice from the Company and prior to receipt of an End of Suspension Notice (as
defined below). Each Holder agrees to keep confidential the fact that the Company has issued a Suspension Notice and the contents
thereof. If so directed by the Company, each Holder will deliver to the Company all copies, other than permanent file copies then
in such Holder’s possession, of the prospectus covering the Registrable Securities at the time of receipt of the Suspension
Notice. The Holders may recommence effecting sales of the Registrable Securities pursuant to the Registration Statement (or such
filings) following further notice to such effect (an “End of Suspension Notice”) from the Company, which End
of Suspension Notice shall be given by the Company to the Holders in the manner described above promptly following the conclusion
of any Suspension Event.

(c)   
Notwithstanding any provision herein to the contrary, if the Company shall give a Suspension Notice pursuant to this Section 7,
the Company agrees that it shall extend the period of time during which the applicable Registration Statement shall be maintained
effective pursuant to this Agreement by the number of days during the period from the date of receipt by the Holders of the Suspension
Notice to and including the date of receipt by the Holders of the End of Suspension Notice and copies of the supplemented or amended
prospectus necessary to resume sales; PROVIDED that such period of time shall not be extended beyond the date that securities
are no longer Registrable Securities.

 

    	12

    	 

     

	 	8.	INDEMNIFICATION and contribution.

(a)   
The Company agrees to indemnify and hold harmless (i) each Holder and any underwriter (as determined in the Securities
Act) for such Holder, (ii) each Person, if any, who controls (within the meaning of Section 15 of the Securities Act
or Section 20(a) of the Exchange Act), any such Person described in clause (i) (any of the Persons referred to in this clause
(ii) being hereinafter referred to as a “Controlling Person”), and (iii) the respective officers, directors,
partners, employees, representatives, affiliates and agents of any such Person or any Controlling Person (any Person referred to
in clause (i), (ii) or (iii) may hereinafter be referred to as a “Purchaser Indemnitee”), to the fullest extent
lawful, from and against any and all losses, claims, damages, judgments, actions, out-of-pocket expenses, and other liabilities
(the “Liabilities”), including without limitation and as incurred, reimbursement of all reasonable costs of
investigating, preparing, pursuing or defending any claim or action, or any investigation or proceeding by any governmental agency
or body, commenced or threatened, including the reasonable fees and expenses of counsel to any Purchaser Indemnitee, joint or several,
directly or indirectly related to, based upon, arising out of or in connection with any untrue statement or alleged untrue statement
of a material fact contained in any Registration Statement or prospectus included in such Registration Statement (as amended or
supplemented if the Company shall have furnished to such Purchaser Indemnitee any amendments or supplements thereto), or any preliminary
prospectus or any other document used to sell the Registrable Securities, or any omission or alleged omission to state therein
a material fact required to be stated therein or necessary to make the statements therein, in the light of the circumstances under
which they were made, not misleading, except insofar as such Liabilities arise out of or are based upon (i) any untrue statement
or omission or alleged untrue statement or omission made in reliance upon and in conformity with information relating to any Purchaser
Indemnitee furnished to the Company or any underwriter in writing by such Purchaser Indemnitee expressly for use therein, or (ii) any
untrue statement contained in or omission from a preliminary prospectus if a copy of the prospectus (as then amended or supplemented,
if the Company shall have furnished to or on behalf of the Holder participating in the distribution relating to the relevant Registration
Statement any amendments or supplements thereto) was not sent or given by or on behalf of such Holder to the Person asserting any
such Liabilities who purchased Registrable Securities, if such prospectus (or prospectus as amended or supplemented) is required
by law to be sent or given at or prior to the written confirmation of the sale of such Registrable Securities to such Person and
the untrue statement contained in or omission from such preliminary prospectus was corrected in the prospectus (or the prospectus
as amended or supplemented), or (iii) any use of any Registration Statement or prospectus included therein during a period when
a stop order has been issued in respect thereof or any action or proceedings for that purpose have been initiated, or use of a
Registration Statement or a prospectus included therein (including any preliminary prospectus) that has been suspended pursuant
to Sections 5(e)(ii), 5(e)(iii), or 5(e)(iv) of this Agreement; provided that, with respect to this subsection (iii), the Holder
using such Registration Statement or prospectus (including any preliminary Prospectus) received the notice required by Section
5(e) hereof in advance of such use. The Company shall notify the Holders promptly of the institution, threat or assertion of any
claim, proceeding (including any governmental investigation), or litigation of which it shall have become aware in connection with
the matters addressed by this Agreement which involves the Company or a Purchaser Indemnitee. The indemnity provided for herein
shall remain in full force and effect regardless of any investigation made by or on behalf of any Purchaser Indemnitee.

 

    	13

    	 

    (b)  
In connection with any Registration Statement in which a Holder of Registrable Securities participating, and as a condition
to such participation, such Holder agrees, severally and not jointly, to indemnify and hold harmless the Company, each Person who
signs the Registration Statement, each Person who controls the Company within the meaning of Section 15 of the Securities
Act or Section 20(a) of the Exchange Act and the respective partners, directors, officers, members, representatives, employees
and agents of the Company, such Person or Controlling Person to the same extent as the foregoing indemnity from the Company to
each Purchaser Indemnitee, but only with reference to untrue statements or omissions or alleged untrue statements or omissions
made in reliance upon and in strict conformity with information relating to such Purchaser Indemnitee furnished to the Company
in writing by such Purchaser Indemnitee expressly for use in any Registration Statement or related prospectus, any amendment or
supplement thereto or any related preliminary prospectus. The liability of any Purchaser Indemnitee pursuant to this paragraph
shall in no event exceed the net proceeds received by such Purchaser Indemnitee from sales of Registrable Securities giving rise
to such obligations.

(c)   
If any suit, action, proceeding (including any governmental or regulatory investigation), claim or demand shall be brought
or asserted against any Person in respect of which indemnity may be sought pursuant to paragraph (a) or (b) above, such Person
(the “Indemnified Party”) shall promptly notify the Person against whom such indemnity may be sought (the “Indemnifying
Party”), in writing, of the commencement thereof (but the failure to so notify an Indemnifying Party shall not relieve
it from any liability which it may have under this Section 8, except to the extent the Indemnifying Party is materially prejudiced
by the failure to give notice), and the Indemnifying Party, upon request of the Indemnified Party, shall retain counsel reasonably
satisfactory to the Indemnified Party to represent the Indemnified Party and any others the Indemnifying Party may reasonably designate
in such proceeding and shall assume the defense of such proceeding and shall pay the reasonable fees and expenses actually incurred
by such counsel related to such proceeding. Notwithstanding the foregoing, in any such proceeding, any Indemnified Party shall
have the right to retain its own counsel, but the fees and expenses of such counsel shall be at the expense of such Indemnified
Party, unless (i) the Indemnifying Party and the Indemnified Party shall have mutually agreed in writing to the contrary,
(ii) the Indemnifying Party failed within a reasonable time after notice of commencement of the action to assume the defense
and employ counsel reasonably satisfactory to the Indemnified Party, (iii) the Indemnifying Party and its counsel do not actively
and vigorously pursue the defense of such action or (iv) the named parties to any such action (including any impleaded parties),
include both such Indemnified Party and the Indemnifying Party, or any Affiliate of the Indemnifying Party, and such Indemnified
Party shall have been reasonably advised by counsel that, either (x) there may be one or more legal defenses available to
it which are different from or additional to those available to the Indemnifying Party or such Affiliate of the Indemnifying Party
or (y) a conflict may exist between such Indemnified Party and the Indemnifying Party or such Affiliate of the Indemnifying
Party (in which case the Indemnifying Party shall not have the right to assume nor direct the defense of such action on behalf
of such Indemnified Party, it being understood, however, that the Indemnifying Party shall not, in connection with any one such
action or separate but substantially similar or related actions in the same jurisdiction arising out of the same general allegations
or circumstances, be liable for the fees and expenses of more than one separate firm of attorneys (in addition to any local counsel),
for all such Indemnified Parties, which firm shall be designated in writing by those Indemnified Parties who sold a majority of
the Registrable Securities sold by all such Indemnified Parties and any such separate firm for the Company, the directors, the
officers and such control Persons of the Company as shall be designated in writing by the Company). The Indemnifying Party shall
not be liable for any settlement of any proceeding effected without its written consent, which consent shall not be unreasonably
withheld, but if settled with such consent or if there is a final judgment for the plaintiff, the Indemnifying Party agrees to
indemnify any Indemnified Party from and against any loss or liability by reason of such settlement or judgment. No Indemnifying
Party shall, without the prior written consent of the Indemnified Party, effect any settlement of any pending or threatened proceeding
in respect of which any Indemnified Party is or could have been a party and indemnity could have been sought hereunder by such
Indemnified Party, unless such settlement includes an unconditional release of such Indemnified Party from all liability on claims
that are the subject matter of such proceeding.

 

    	14

    	 

    (d)  
If the indemnification provided for in paragraphs (a) and (b) of this Section 8 is for any reason held to be unavailable
to an Indemnified Party in respect of any Liabilities referred to therein (other than by reason of the exceptions provided therein)
or is insufficient to hold harmless a party indemnified thereunder, then each Indemnifying Party under such paragraphs, in lieu
of indemnifying such Indemnified Party thereunder, shall contribute to the amount paid or payable by such Indemnified Party as
a result of such Liabilities (i) in such proportion as is appropriate to reflect the relative benefits of the Indemnified
Party on the one hand and the Indemnifying Party(ies) on the other in connection with the statements or omissions that resulted
in such Liabilities, or (ii) if the allocation provided by clause (i) above is not permitted by applicable law, in such proportion
as is appropriate to reflect not only the relative benefits referred to in clause (i) above but also the relative fault of the
Indemnifying Party(ies) and the Indemnified Party, as well as any other relevant equitable considerations. The relative fault of
the Company on the one hand and any Purchaser Indemnitees on the other shall be determined by reference to, among other things,
whether the untrue or alleged untrue statement of a material fact or the omission or alleged omission to state a material fact
relates to information supplied by the Company or by such Purchaser Indemnitees and the parties’ relative intent, knowledge,
access to information and opportunity to correct or prevent such statement or omission.

(e)   
The parties agree that it would not be just and equitable if contribution pursuant to this Section 8 were determined
by pro rata allocation (even if such Indemnified Parties were treated as one entity for such purpose), or by any other method
of allocation that does not take account of the equitable considerations referred to in paragraph 8(d) above. The amount paid or
payable by an Indemnified Party as a result of any Liabilities referred to in paragraph 8(d) shall be deemed to include, subject
to the limitations set forth above, any reasonable legal or other expenses actually incurred by such Indemnified Party in connection
with investigating or defending any such action or claim. Notwithstanding the provisions of this Section 8, in no event shall
a Purchaser Indemnitee be required to contribute any amount in excess of the amount by which proceeds received by such Purchaser
Indemnitee from sales of Registrable Securities exceeds the amount of any damages that such Purchaser Indemnitee has otherwise
been required to pay by reason of such untrue or alleged untrue statement or omission or alleged omission. For purposes of this
Section 8, each Person, if any, who controls (within the meaning of Section 15 of the Securities Act or Section 20(a)
of the Exchange Act) a Holder shall have the same rights to contribution as such Holder and each Person, if any, who controls (within
the meaning of Section 15 of the Act or Section 20(a) of the Exchange Act) the Company, and each officer, director, partner,
employee, representative, agent or manager of the Company shall have the same rights to contribution as the Company. Any party
entitled to contribution will, promptly after receipt of notice of commencement of any action, suit or proceeding against such
party in respect of which a claim for contribution may be made against another party or parties, notify each party or parties from
whom contribution may be sought, but the omission to so notify such party or parties shall not relieve the party or parties from
whom contribution may be sought from any obligation it or they may have under this Section 8 or otherwise, except to the extent
that any party is materially prejudiced by the failure to give notice. No Person guilty of fraudulent misrepresentation (within
the meaning of Section 11(f) of the Securities Act), shall be entitled to contribution from any Person who was not guilty
of such fraudulent misrepresentation.

 

    	15

    	 

    (f)   
The indemnity and contribution agreements contained in this Section 8 will be in addition to any liability which the
Indemnifying Parties may otherwise have to the Indemnified Parties referred to above. The Purchaser Indemnitee’s obligations
to contribute pursuant to this Section 8 are several in proportion to the respective number of Registrable Securities sold
by each of the Purchaser Indemnitees hereunder and not joint.

9.                 
PARTICIPATION IN UNDERWRITTEN REGISTRATIONS. No
Person may participate in any registration hereunder which is underwritten unless such Person (a) agrees to sell such Person’s
securities on the basis provided in any underwriting arrangements approved by the Person or Persons entitled hereunder to approve
such arrangements and (b) completes and executes all customary questionnaires, powers of attorney, indemnities, underwriting
agreements and other documents reasonably required under the terms of such underwriting arrangements. 

	 	10.	MISCELLANEOUS.

(a)   
NOTICES. All notices or other communication required or permitted hereunder shall be in writing and shall be delivered
personally, telecopied or sent by certified, registered or express mail, postage prepaid. Any such notice shall be deemed given
when so delivered personally, telecopied or sent by certified, registered or express mail or, if mailed, five days after the date
of deposit in the United States mail, as follows:

 

    	16

    	 

    If to the Company:

Roberts Realty Investors,
Inc.

375 Northridge Road

Suite 330

Atlanta, GA 30350

Attention:Chief
Executive Officer

 

With a copy
to:

A-III Manager LLC

c/o Avenue Capital Group

399 Park Avenue

New York, New York 10022

Attention: Edward Gellert

Telephone: 212-850-7534

Email: egellert@avenuecapital.com

 

If to the Purchaser:

A-III Investment Partners

c/o Avenue Capital Group

399 Park Avenue

New York, New York 10022

Attention: Edward Gellert

Telephone: 212-850-7534

Email: egellert@avenuecapital.com

 

With a copy
to:

Hunton & Williams LLP

951 East Byrd Street, Riverfront
Plaza

Richmond, Virginia 23219

Attention: Daniel M. LeBey, Esq.

 

Any party may
by notice given in accordance with this Section 9(a) designate another address or person for receipt of notices hereunder.

(b)  
AMENDMENT AND WAIVER.

(i)                
No failure or delay on the part of any party hereto in exercising any right, power or remedy hereunder shall operate as
a waiver thereof, nor shall any single or partial exercise of any such right, power or remedy preclude any other or further exercise
thereof or the exercise of any other right, power or remedy. The remedies provided for herein are cumulative and are not exclusive
of any remedies that may be available to the parties hereto at law, in equity or otherwise.

 

    	17

    	 

    (ii)              
Any amendment, supplement or modification of or to any provision of this Agreement, any waiver of any provision of this
Agreement, and any consent to any departure by any party from the terms of any provision of this Agreement, shall be effective,
(a) only if it is made or given in writing and signed by the Company and by the holders of at least 66-2/3% of the Registrable
Securities and (b) only in the specific instance and for the specific purpose for which made or given.

(c)   
SPECIFIC PERFORMANCE. The parties hereto intend that each of the parties have the right to seek damages or specific
performance in the event that any other party hereto fails to perform such party’s obligations hereunder. Therefore, if any
party shall institute any action or proceeding to enforce the provisions hereof, any party against whom such action or proceeding
is brought hereby waives any claim or defense therein that the plaintiff party has an adequate remedy at law.

(d)  
HEADINGS. The headings in this Agreement are for convenience of reference only and shall not limit or otherwise affect
the meaning hereof.

(e)   
SEVERABILITY. If any one or more of the provisions contained herein, or the application thereof in any circumstance,
is held invalid, illegal or unenforceable in any respect for any reason, the validity, legality and enforceability of any such
provision in every other respect and of the remaining provisions hereof shall not be in any way impaired, unless the provisions
held invalid, illegal or unenforceable shall substantially impair the benefits of the remaining provisions hereof.

(f)   
ENTIRE AGREEMENT. This Agreement is intended by the parties as a final expression of their agreement and intended
to be a complete and exclusive statement of the agreement and understanding of the parties hereto in respect of the subject matter
contained herein and therein. There are no restrictions, promises, warranties or undertakings, other than those set forth or referred
to herein or therein. This Agreement supersedes all prior agreements and understandings between the parties with respect to such
subject matter.

(g)  
TERM OF AGREEMENT. The provisions of this Agreement shall become effective upon the execution hereof and shall terminate
as provided herein.

(h)  
VARIATIONS IN PRONOUNS. All pronouns and any variations thereof refer to the masculine, feminine or neuter, singular
or plural, as the context may require.

(i)    
GOVERNING LAW. THIS AGREEMENT SHALL BE GOVERNED AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK
APPLICABLE TO AGREEMENTS MADE AND TO BE PERFORMED ENTIRELY WITHIN SUCH STATE, WITHOUT REGARD TO THE PRINCIPLES OF CONFLICTS OF
LAW THEREOF.

 

    	18

    	 

    (j)    
FURTHER ASSURANCES. Each of the parties shall, and shall cause their respective Affiliates to, execute such instruments
and take such action as may be reasonably required or desirable to carry out the provisions hereof and the transactions contemplated
hereby.

(k)  
SUCCESSORS AND ASSIGNS. This Agreement shall be binding upon and inure to the benefit of the parties and their respective
successors, heirs, legatees and legal representatives. This Agreement is not assignable except in connection with a transfer of
Shares in accordance with this Agreement.

(l)    
COUNTERPARTS. This Agreement may be executed in one or more counterparts, each of which shall be deemed an original,
and all of which taken together shall constitute one and the same instrument.

[Signatures on next
page]

 

    	19

    	 

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

 

	COMPANY:	ROBERTS REALTY INVESTORS, INC.	 
	 	 	 
	 	 	 
	 	/s/ Charles S. Roberts	 
	 	Name: Charles S. Roberts	 
	 	Title: CEO and President	 
	 	 	 
	 	 	 
	PURCHASER:	A-III Investment Partners LLC	 
	 	 	 
	 	 	 
	 	/s/ Edward Gellert	 
	 	Name: Edward Gellert	 
	 	Title: Authorized Signatory	 

 

[Signature page to
Registration Rights Agreement]

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