Document:

Exhibit10.11-OdlandEmploymentAgreement

Exhibit 10.11

EMPLOYMENT AGREEMENT
This Employment Agreement (“Agreement”) is made as of the 1st day of August, 2013 (the “Commencement Date”), between Behringer Harvard Multifamily REIT I, Inc., a Maryland corporation (the “Company”) and Behringer Harvard Multifamily Operating Partnership I LP (the “Operating Partnership”), a Delaware limited partnership, and Ross Odland (the “Executive”). 
WHEREAS, the Operating Partnership and the Company, along with any subsidiaries or affiliates of the Operating Partnership or the Company which (currently or in the future may) employ or pay the Executive (collectively the “Employers”), desire to employ the Executive and the Executive desires to be employed by the Employers to provide services for the Employers and their respective wholly‐owned subsidiaries on the terms contained herein.
NOW, THEREFORE, in consideration of the mutual covenants and agreements herein contained and other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the parties agree as follows:
1.Employment.
(a)Term.  The Employers hereby employ the Executive, and the Executive hereby accepts such employment, for an initial term commencing as of the Commencement Date and continuing until the third anniversary of the Commencement Date (the “Initial Term”), unless sooner terminated in accordance with the provisions of Section 3; with such employment to automatically continue following the Initial Term for an additional one-year period in accordance with the terms of this Agreement (subject to termination as aforesaid) unless either party notifies the other party in writing of its intention not to renew this Agreement at least 60 days prior to the expiration of the Initial Term (the Initial Term, together with any such extension of employment hereunder, shall hereinafter be referred to as the “Term”).
(b)Position and Duties.  The Executive shall serve as the Senior Vice President - Portfolio Management of the Company.  The Executive shall have supervision and control over and responsibility for the day-to-day business and affairs of the Employers and shall have such other powers and duties as may from time to time be prescribed by the Board of Directors of the Company (the “Board”).  The Executive shall report to the Company’s President and Chief Operating Officer.  The Executive shall devote his full working time and efforts to the business and affairs of the Employers and their subsidiaries.  Notwithstanding the foregoing, the Executive may serve on other boards of directors, with the approval of the Board, or engage in religious, charitable or other community activities as long as such services and activities are disclosed to the Board and do not materially interfere with the Executive’s performance of his duties to the Employers as provided in this Agreement.
2.    Compensation and Related Matters.
(a)    Base Salary.  During the Term, the Executive’s annual base salary shall be no less than $225,000.  The Executive’s base salary shall be redetermined annually by the 

Compensation Committee of the Board (the “Compensation Committee”) and when increased, may not be reduced without the Executive’s consent.  The base salary in effect at any given time is referred to herein as “Base Salary.”  The Base Salary shall be payable in a manner that is consistent with the Employers’ usual payroll practices for senior executives.
(b)    Cash Incentive Compensation.  During the Term, the Executive shall be eligible to receive cash incentive compensation as determined by the Compensation Committee from time to time in accordance with the Company’s executive annual incentive plan, which terms and conditions shall be communicated to the Executive prior to April 1 (or such other agreed upon period) after the beginning of each calendar year ending after 2013 during the Term.  The cash incentive compensation for 2013 shall be determined as if the Executive had been employed by the Employers since January 1, 2013, but shall be offset by any bonus payable by Behringer Harvard Multifamily Advisors I, LLC or its subsidiaries or affiliates (“Behringer Harvard”) for the Executive’s service in 2013.  The Executive’s target annual cash incentive compensation shall be 60 percent of his Base Salary.  The cash incentive compensation will be predicated on both objective corporate (e.g., EBITDA, FFO, NOI growth, occupancy/leasing goals, investment activity, etc.) and individual measures to be mutually agreed upon between the Executive and the Compensation Committee.  The amount of cash incentive compensation awarded to the Executive each year shall be reasonable in light of the contributions made by the Executive for such year in relation to the contributions made and the cash incentive compensation awarded to other senior executives of the Employers for such year.  Cash incentive compensation for any year, if awarded by the Compensation Committee, shall be paid in the first 75 days after the beginning of the subsequent calendar year.
(c)    Long-Term Incentive Awards.  The Executive shall be entitled to receive equity awards at the discretion of the Compensation Committee under the Company’s Amended and Restated 2006 Incentive Award Plan, as amended by the Company to conform to (and be consistent with) this Agreement and otherwise as thereafter amended (and any other successor plan).  The Executive’s target annual long-term incentive award shall be equal to at least 50 percent of his Base Salary plus his target annual cash incentive compensation attributable to such calendar year during the Term.  The long-term incentive award for 2013 shall be determined as if the Executive had been employed by the Employers since January 1, 2013.  The size of each equity award granted to the Executive shall be reasonable in light of the contributions made or anticipated to be made by the Executive for the period for which such equity award is made.  Each long-term incentive award shall be in writing and shall include all vesting and relevant performance terms and conditions.  
(d)    Expenses.  The Executive shall be entitled to receive reimbursement, within 30 days, for all reasonable expenses incurred by him during the Term in performing services hereunder, subject to compliance with the policies and procedures for expense reimbursement then in effect and established by the Employers for their senior executives.  The Executive shall be reimbursed up to $5,000 for any legal fees incurred in the preparation of this Agreement within 30 days of receiving an invoice from the Executive’s law firm for such legal expenses.

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(e)    Other Benefits.  During the Term, the Executive shall participate in all benefit plans of the Employers for which he is eligible under the terms of such plans and shall receive benefits as provided by the Employers from time to time at a level no less favorable than those provided to other senior executives of the Employers.  Through the end of the month during which the Employers establish benefit plans for their employees which cover the Executives (other than medical, dental and vision benefits offered through a third party provider or a professional service organization (“PEO”)), the Executive shall receive $3,050 each month of employment in lieu of benefits, to be offset by any contributions made by the Employers on behalf of the Executive towards medical, dental and vision benefits provided through a PEO.  The Employers shall also cause the Executive to receive predecessor service credit with respect to periods of service with Behringer Harvard or their respective affiliates under all benefit, vacation, leave, seniority programs and similar of the Employers for purposes of vesting and eligibility.
(f)    Indemnification and Directors’ and Officers’ Insurance.  The Employers shall indemnify the Executive to the same extent as it indemnifies its other officers and members of the Board under the Employers’ Articles of Incorporation, Bylaws and other organizational documents as in effect from time to time and to the fullest extent permitted by law.  The Executive shall also be covered by the Employers’ directors’ and officers’ liability, errors and omissions, special crime and fiduciary insurance policies in effect from time to time.
(g)    Paid Time Off.  During the Term, the Executive shall be entitled to receive paid time off (“Paid Time Off”) in accordance with the policy of the Employers in effect from time to time under terms no less favorable than those provided by Behringer Harvard on July 31, 2013 with respect to the Executive.
3.    Termination.  During the Term, the Executive’s employment hereunder may be terminated without any breach of this Agreement under the following circumstances:
(a)    Death.  The Executive’s employment hereunder shall terminate upon his death.
(b)    Disability.  The Employers may terminate the Executive’s employment if he is disabled and unable to perform the essential functions of the Executive’s then existing position or positions under this Agreement (disregarding any reasonable accommodation) for a period of 90 consecutive days or for an aggregate of 180 days in any 12-month period.  If any question shall arise as to whether during any period the Executive is disabled so as to be unable to perform the essential functions of the Executive’s then existing position or positions (disregarding any reasonable accommodation), the Executive may, and at the request of the Employers shall, submit to the Employers a certification in reasonable detail by a physician jointly selected by the Employers and the Executive or the Executive’s guardian or representative as to whether the Executive is so disabled or how long such disability is expected to continue, and such certification shall for the purposes of this Agreement be conclusive of the issue.  The Executive shall cooperate with any reasonable request of the physician in connection with such certification.  If the Executive shall fail to submit such certification, the Employers’ determination of such issue shall be binding on the Executive.  Nothing in this Section 3(b) shall 

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be construed to waive the Executive’s rights, if any, under existing law including, without limitation, the Family and Medical Leave Act of 1993, 29 U.S.C. §2601 et seq. and the Americans with Disabilities Act, 42 U.S.C. §12101 et seq.  
(c)    Termination by the Employers for Cause.  The Employers may terminate the Executive’s employment hereunder for Cause.  For purposes of this Agreement, “Cause” shall mean:  (i) the Executive’s dishonest or fraudulent action, willful misconduct or gross negligence in the conduct of his duties to the Employers; (ii) the Executive’s conviction of, or pleading nolo contendere to, a felony; (iii) a material failure by the Executive to devote substantially all of his business time to the business of the Employers that is not cured by the Executive within 60 days after receiving written notice of such failure, unless such failure is due to an illness, injury or disability of the Executive or exercise of legally entitled rights such as under the Family Medical and Leave Act (“FMLA”) by the Executive; (iv) a material failure by the Executive to follow the Employers’ good faith instructions and directives that is not cured by the Executive within 60 days after receiving written notice of such failure, unless such failure is due to an illness, injury or disability of the Executive or exercise of legally entitled rights such as under FMLA by the Executive; (v) the Executive’s unreasonable and material neglect, refusal or failure to perform his assigned duties that is not cured by the Executive within 60 days after receiving written notice of such neglect, refusal or failure, unless such failure is due to an illness, injury or disability of the Executive or exercise of legally entitled rights such as under FMLA by the Executive; (vi) the Executive’s material breach of this Agreement; (vii) the Executive’s material breach of the Employers’ Code of Business Conduct Policy that if curable, is not cured within ten (10) business days; (viii) any governmental regulatory agency recommendations or orders that the Employers terminate the employment of the Executive or relieve him of his duties; or (ix) any other act or omission by the Executive that would reasonably be expected to result in material reputational harm to the Employers, their subsidiaries or affiliates.
(d)    Termination Without Cause.  The Employers may terminate the Executive’s employment hereunder at any time without Cause.  Any termination by the Employers of the Executive’s employment under this Agreement which does not constitute a termination for Cause under Section 3(c) and does not result from the death or disability of the Executive under Section 3(a) or (b) shall be deemed a termination without Cause.
(e)    Termination by the Executive.  The Executive may terminate his employment hereunder at any time for any reason, including but not limited to Good Reason.  For purposes of this Agreement, “Good Reason” shall mean that the Executive has complied with the “Good Reason Process” (hereinafter defined) following the occurrence of any of the following events:  (i) a material breach of this Agreement by the Employers, (ii) a diminution of, or reduction or adverse alteration of, the Executive’s duties or responsibilities, or the Employers’ assignment of duties, responsibilities or reporting requirements that are inconsistent with his position or that materially expand his duties, responsibilities or reporting requirements without the Executive’s consent, or (iii) any requirement by the Employers that the Executive relocate to a principal place of business more than 35 miles from the physical location of the principal office work location of the Executive on the Commencement Date.  “Good Reason Process” shall mean that (i) the Executive reasonably determines in good faith that a “Good Reason” condition has 

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occurred; (ii) the Executive notifies the Employers in writing of the Good Reason condition within 90 days of when the Executive has actual knowledge of the first occurrence of such condition; (iii) the Executive cooperates in good faith with the Employers’ efforts, for a period not less than 30 days following such notice (the “Cure Period”), to remedy the condition; (iv) notwithstanding such efforts, the Good Reason condition continues to exist; and (v) the Executive terminates his employment within 30 days after the end of the Cure Period.  If the Employers cure the Good Reason condition during the Cure Period, Good Reason shall be deemed not to have occurred.
(f)    Notice of Termination.  Except for termination as specified in Section 3(a), any termination of the Executive’s employment by the Employers or any such termination by the Executive shall be communicated by written Notice of Termination to the other party hereto.  For purposes of this Agreement, a “Notice of Termination” shall mean a notice which shall indicate the specific termination provision in this Agreement relied upon.
(g)    Date of Termination.  “Date of Termination” shall mean:  (i) if the Executive’s employment is terminated by his death, the date of his death; (ii) if the Executive’s employment is terminated on account of disability under Section 3(b) or by the Employers for Cause under Section 3(c), the date on which Notice of Termination is given; (iii) if the Executive’s employment is terminated by the Employers under Section 3(d), 30 days after the date on which a Notice of Termination is given; (iv) if the Executive’s employment is terminated by the Executive under Section 3(e) without Good Reason, 30 days after the date on which a Notice of Termination is given, and (v) if the Executive’s employment is terminated by the Executive under Section 3(e) with Good Reason, the date on which a Notice of Termination is given after the end of the Cure Period.  Notwithstanding the foregoing, (A) in the event that the Executive gives a Notice of Termination to the Employers, the Employers may unilaterally accelerate the Date of Termination and such acceleration shall not result in a termination by the Employers for purposes of this Agreement, and (B) in the event that the Employers terminate the Executive’s employment without Cause under Section 3(d), the Employers may unilaterally accelerate the Date of Termination to any earlier effective date provided that the Employers continue to pay the Executive the Base Salary for the 30-day period immediately following the date on which a Notice of Termination is given to the Executive.
4.    Compensation Upon Termination.
(a)    Termination Generally.  If the Executive’s employment with the Employers is terminated for any reason, the Employers shall pay or provide to the Executive (or to his authorized representative or estate) (i) any Base Salary earned through the Date of Termination, unpaid expense reimbursements (subject to, and in accordance with, Section 2(d) of this Agreement) and unused Paid Time Off that accrued through the Date of Termination on or before the time required by law but in no event more than 30 days after the Executive’s Date of Termination; (ii) any vested benefits the Executive may have under any employee benefit plan of the Employers through the Date of Termination, which vested benefits shall be paid and/or provided in accordance with the terms of such employee benefit plans; and (iii) except in the case of the Executive’s termination by the Employers for Cause, any awarded and unpaid cash 

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incentive compensation, including, but not limited to any cash incentive compensation referenced in this Agreement or other compensation or benefits which the Executive has earned on or before termination (collectively, the “Accrued Benefit”).
(b)    Termination on Account of Death or Disability.  During the Term, if the Executive’s employment is terminated on account of death under Section 3(a) or disability under Section 3(b), the Employers shall pay the Executive (or his authorized representative or estate) his Accrued Benefit.  The Employers shall also provide the Executive (or his authorized representative or estate) with a lump sum payment equal to 100 percent of his Base Salary within 60 days of the Date of Termination.  In addition, the Executive (or his authorized representative or estate) shall also be entitled to receive the pro rata portion of any cash incentive compensation which would have been earned by the Executive during such year of termination had such Executive remained employed the entire year and as determined by the Compensation Committee pursuant to Section 2(b), determined by multiplying such cash incentive compensation by a fraction, the numerator of which equals the number of days the Executive is employed by the Employers during such year to the Date of Termination, and the denominator of which equals 365 (the “Pro-Rated Bonus”).  The Pro-Rated Bonus shall be paid at the same time that the Employers pay cash incentive compensation to other executives under Section 2(b).  Upon the Date of Termination, all equity awards with time-based vesting shall immediately fully vest in accordance with their terms and become non-forfeitable.  Each equity award which has been granted (or any other equity award which would otherwise have been granted to the Executive during the applicable performance period/calendar year in the ordinary course) with performance vesting shall vest at an amount based upon the Employers’ achievement of performance goals through the end of performance period, multiplied by a fraction, the numerator of which shall be the number of days the Executive was employed by the Employers from the commencement of the performance period through the Date of Termination and the denominator of which shall be the total number of days in the performance period.
(c)    Termination by the Employers Without Cause or by the Executive with Good Reason.  During the Term, if the Executive’s employment is terminated by the Employers without Cause as provided in Section 3(d), or the Executive terminates his employment for Good Reason as provided in Section 3(e), then the Employers shall pay the Executive his Accrued Benefit.  The Employers shall also pay the Executive his Pro-Rated Bonus at the same time that the Employers pay cash incentive compensation to other executives under Section 2(b).  In addition, subject to the Executive signing a general release of claims in favor of the Employers and related persons and entities in a form and manner satisfactory to the Employers and the expiration of the applicable seven-day revocation period (the “Release Condition”), all within 60 days from the Date of Termination:
(i)    the Employers shall pay the Executive an amount equal to 2.0 times the sum of (A) the Executive’s Base Salary plus (B) the Executive’s Incentive Compensation determined on the Date of Termination.  For purposes of this Agreement, “Incentive Compensation” shall mean the average of the annual cash incentive compensation under Section 2(b) received by the Executive each year during the Term of the Agreement; and

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(ii)    upon the Date of Termination, all equity awards with time-based vesting shall immediately fully vest in accordance with their terms and become non-forfeitable and each equity award which has been granted (or any other equity award which would otherwise have been granted to the Executive during the applicable performance period/calendar year in the ordinary course) with performance vesting shall vest at an amount based on the Employers’ achievement of performance goals through the end of the performance period, multiplied by a fraction, the numerator of which shall be the number of days the Executive was employed by the Employers from the commencement of the performance period through the Date of Termination and the denominator of which shall be the total number of days in the performance period; and
(iii)    if the Executive was participating in the Employers’ group medical, vision and dental plan immediately prior to the Date of Termination, then the Employers shall provide the Executive with a lump sum payment equal to (A) 18 times the amount of monthly employer contribution that the Employers made to an insurer (or as otherwise determined on an actuarial basis based upon the applicable monthly premium for continuation coverage under section 4980B of the Code and corresponding provisions of ERISA (“COBRA”)) to provide medical, vision and dental insurance to the Executive and his dependents in the month immediately preceding the Date of Termination, plus (B) the amount the Employers would have contributed to their health reimbursement arrangement on the Executive’s behalf for 18 months from the Date of Termination if the Executive had remained employed by the Employers; and
(iv)    the amounts payable under Subsections (i) and (iii) shall be paid in a lump sum within 60 days after the Date of Termination; provided, however, that if the 60-day period begins in one calendar year and ends in a second calendar year, such amounts shall be paid in the second calendar year no later than the last day of such 60-day period.
(d)    Expiration/Non-Renewal of the Agreement by the Employers.  For the avoidance of doubt, a non-renewal of this Agreement by the Employers (in accordance with Section 1(a) above) will not constitute a termination of employment by the Employers without Cause and the Executive acknowledges that the severance provisions of Section 4(c) will not apply.
5.    Change in Control Payment.  The provisions of this Section 5 set forth certain terms of an agreement reached between the Executive and the Employers regarding the Executive’s rights and obligations upon the occurrence of a Change in Control of the Company or the Operating Partnership.  These provisions shall apply in lieu of, and expressly supersede, the provisions of Section 4(c) regarding severance pay and benefits upon a termination of Executive’s employment, if such termination of employment occurs within 18 months after the occurrence of the first event constituting a Change in Control.  Except for Section 5(a), which applies regardless, these provisions shall terminate and be of no further force or effect with respect to a Change in Control beginning 18 months after the occurrence of such Change in Control.

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(a)    Treatment of Equity Awards.  Upon a Change of Control, all equity awards with time-based vesting shall immediately fully vest and become non-forfeitable and each equity award which has been granted (or any other equity award which would otherwise have been granted to the Executive during the applicable performance period/calendar year in the ordinary course) with performance vesting shall vest at an amount based upon and to the extent of the Employers’ achievement of performance goals during the performance period under each such equity award through the end of the calendar month immediately preceding the Change in Control.
(b)    Severance.  During the Term, if within 18 months after a Change in Control, the Executive’s employment is terminated by the Employers without Cause as provided in Section 3(d) or the Executive terminates his employment for Good Reason as provided in Section 3(e), then the Employers shall pay the Executive his Accrued Benefit.  The Employers shall also pay the Executive his Pro-Rated Bonus at the same time that the Employers pay cash incentive compensation to executives under Section 2(b).  Subject to the satisfaction of the Release Condition, all within 60 days from the Date of Termination,
(i)     the Employers shall pay the Executive a lump sum in cash in an amount equal to 2.0 times the sum of (A) the Executive’s current Base Salary (or the Executive’s Base Salary in effect immediately prior to the Change in Control, if higher) plus (B) the Executive’s Incentive Compensation determined on the Date of Termination; and
(ii)    if the Executive was participating in the Employers’ group medical, vision and dental plan immediately prior to the Date of Termination, then the Employers shall provide the Executive with a lump sum payment equal to (A) 18 times the amount of monthly employer contribution that the Employers made to an insurer (or as otherwise determined on an actuarial basis based upon the applicable monthly premium for continuation coverage under COBRA) to provide medical, vision and dental insurance to the Executive and his dependents in the month immediately preceding the Date of Termination, plus (B) the amount the Employers would have contributed to their health reimbursement arrangement on the Executive’s behalf for 18 months from the Date of Termination if the Executive had remained employed by the Employers; and 
(iii)    the amounts payable under Subsections (i) and (ii) shall be paid in a lump sum within 60 days after the Date of Termination; provided, however, that if the 60-day period begins in one calendar year and ends in a second calendar year, such amounts shall be paid in the second calendar year no later than the last day of such 60-day period.
(c)    Additional Limitation.
(i)    Anything in this Agreement to the contrary notwithstanding, in the event that the amount of any compensation, payment or distribution by the Employers to or for the benefit of the Executive, whether paid or payable or distributed or distributable pursuant to the terms of this Agreement or otherwise, calculated in a manner consistent 

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with Section 280G of the Internal Revenue Code of 1986, as amended (the “Code”) and the applicable regulations thereunder (the “Severance Payments”), would be subject to the excise tax imposed by Section 4999 of the Code, the following provisions shall apply:
(A)    If the Severance Payments, reduced by the sum of (1) the Excise Tax and (2) the total of the Federal, state, and local income and employment taxes payable by the Executive on the amount of the Severance Payments which are in excess of the Threshold Amount, are greater than or equal to the Threshold Amount, the Executive shall be entitled to the full benefits payable under this Agreement.
(B)    If the Threshold Amount is less than (x) the Severance Payments, but greater than (y) the Severance Payments reduced by the sum of (1) the Excise Tax and (2) the total of the Federal, state, and local income and employment taxes on the amount of the Severance Payments which are in excess of the Threshold Amount, then the Severance Payments shall be reduced (but not below zero) to the extent necessary so that the sum of all Severance Payments shall not exceed the Threshold Amount.  In such event, the Severance Payments shall be reduced in the following order:  (1) cash payments not subject to Section 409A of the Code; (2) cash payments subject to Section 409A of the Code; (3) equity-based payments and acceleration; and (4) non-cash forms of benefits.  To the extent any payment is to be made over time (e.g., in installments, etc.), then the payments shall be reduced in reverse chronological order.
(ii)    For the purposes of this Section 5(c), “Threshold Amount” shall mean three times the Executive’s “base amount” within the meaning of Section 280G(b)(3) of the Code and the regulations promulgated thereunder less one dollar ($1.00); and “Excise Tax” shall mean the excise tax imposed by Section 4999 of the Code, and any interest or penalties incurred by the Executive with respect to such excise tax.
(iii)    The determination as to which of the alternative provisions of Section 5(c)(i) shall apply to the Executive shall be made by a nationally recognized accounting firm jointly selected by the Employers and the Executive (the “Accounting Firm”), which shall provide detailed supporting calculations both to the Employers and the Executive within 15 business days of the Date of Termination, if applicable, or at such earlier time as is reasonably requested by the Employers or the Executive.  For purposes of determining which of the alternative provisions of Section 5(c)(i) shall apply, the Executive shall be deemed to pay federal income taxes at the estimated marginal rate of federal income taxation applicable to individuals for the calendar year in which the determination is to be made, and state and local income taxes at the highest marginal rates of individual taxation in the state and locality of the Executive’s residence on the Date of Termination, net of the maximum reduction in federal income taxes which could be obtained from deduction of such state and local taxes.  Any determination by the Accounting Firm shall be binding upon the Employers and the Executive.

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(d)    Definitions.  For purposes of this Section 5, the following terms shall have the following meanings:
“Change in Control” shall mean any of the following:
(i)    any “person,” as such term is used in Sections 13(d) and 14(d) of the Securities Exchange Act of 1934, as amended (the “Act”) (other than the Employers, any of their subsidiaries, or any trustee, fiduciary or other person or entity holding securities under any employee benefit plan or trust of the Employers or any of their subsidiaries), together with all “affiliates” and “associates” (as such terms are defined in Rule 12b-2 under the Act) of such person, shall become the “beneficial owner” (as such term is defined in Rule 13d-3 under the Act), directly or indirectly, of securities of the Company representing more than 50 percent of the combined voting power of the Company’s then outstanding securities having the right to vote in an election of the Board (“Voting Securities”) (in such case other than as a result of an acquisition of securities directly by the Company or the Operating Partnership); or
(ii)    the date a majority of the members of the Board is replaced during any 12-month period by directors whose appointment or election is not endorsed by a majority of the members of the Board before the date of the appointment or election; or
(iii)    the date a majority of the members of the Board is replaced during the 12-month period immediately following any consolidation or merger (or similar transaction) of the Company or the Operating Partnership; or
(iv)    the consummation of (A) any consolidation or merger of the Company or the Operating Partnership where the shareholders of the Company and the unit holders of the Operating Partnership taken as a whole and considered as one class immediately before the transaction, or the unit holders of the Operating Partnership, as the case may be, immediately prior to the consolidation or merger, would not, immediately after the consolidation or merger, beneficially own (as such term is defined in Rule 13d-3 under the Act), directly or indirectly, shares representing in the aggregate more than 50 percent of the voting shares of the entity issuing cash or securities in the consolidation or merger (or of its ultimate parent corporation, if any), or (B) any sale or other transfer, liquidation or dissolution (in one transaction or a series of transactions contemplated or arranged by any party as a single plan) of more than 50 percent of the assets of the Company or the Operating Partnership, whether owned directly or indirectly through one or more affiliates, subsidiaries or joint ventures. 
Notwithstanding the foregoing, a “Change in Control” shall not be deemed to have occurred for purposes of the foregoing clause (i) solely as the result of any acquisition of securities by the Company which, by reducing the number of shares of Voting Securities outstanding, increases the proportionate number of Voting Securities beneficially owned by any person to more than 50 percent of the combined voting power of all of the then outstanding Voting Securities; provided, however, that if any person referred to in this sentence shall thereafter become the beneficial owner of any additional shares of Voting Securities (other than 

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pursuant to a stock split, stock dividend, or similar transaction or as a result of an acquisition of securities directly from the Company) and immediately thereafter beneficially owns more than 50 percent of the combined voting power of all of the then outstanding Voting Securities, then a “Change in Control” shall be deemed to have occurred for purposes of the foregoing clause (i).  A Change in Control shall not be deemed to have occurred in connection with any internal corporate restructuring.
6.    Section 409A.
(a)    Anything in this Agreement to the contrary notwithstanding, if at the time of the Executive’s separation from service within the meaning of Section 409A of the Code, the Employers determine that the Executive is a “specified employee” within the meaning of Section 409A(a)(2)(B)(i) of the Code, then to the extent any payment or benefit that the Executive becomes entitled to under this Agreement on account of the Executive’s separation from service would be considered deferred compensation otherwise subject to the 20 percent additional tax imposed pursuant to Section 409A(a) of the Code as a result of the application of Section 409A(a)(2)(B)(i) of the Code, such payment shall not be payable and such benefit shall not be provided until the date that is the earlier of (A) six months and one day after the Executive’s separation from service, or (B) the Executive’s death.  If any such delayed cash payment is otherwise payable on an installment basis, the first payment shall include a catch-up payment covering amounts that would otherwise have been paid during the six-month period but for the application of this provision, and the balance of the installments shall be payable in accordance with their original schedule.
(b)    All in-kind benefits provided and expenses eligible for reimbursement under this Agreement shall be provided by the Employers or incurred by the Executive during the time periods set forth in this Agreement.  All reimbursements shall be paid as soon as administratively practicable, but in no event shall any reimbursement be paid after the last day of the taxable year following the taxable year in which the expense was incurred.  The amount of in-kind benefits provided or reimbursable expenses incurred in one taxable year shall not affect the in-kind benefits to be provided or the expenses eligible for reimbursement in any other taxable year (except for any lifetime or other aggregate limitation applicable to medical expenses).  Such right to reimbursement or in-kind benefits is not subject to liquidation or exchange for another benefit.
(c)    To the extent that any payment or benefit described in this Agreement constitutes “non-qualified deferred compensation” under Section 409A of the Code, and to the extent that such payment or benefit is payable upon the Executive’s termination of employment, then such payments or benefits shall be payable only upon the Executive’s “separation from service.”  The determination of whether and when a separation from service has occurred shall be made in accordance with the presumptions set forth in Treasury Regulation Section 1.409A‐1(h). 
(d)    The parties intend that this Agreement will be administered in accordance with Section 409A of the Code.  To the extent that any provision of this Agreement is ambiguous as to its compliance with Section 409A of the Code, the provision shall be read in such a manner 

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so that all payments hereunder comply with Section 409A of the Code.  Each payment pursuant to this Agreement is intended to constitute a separate payment for purposes of Treasury Regulation Section 1.409A‐2(b)(2).  The parties agree that this Agreement may be amended, as reasonably requested by either party, and as may be necessary to fully comply with Section 409A of the Code and all related rules and regulations in order to preserve the payments and benefits provided hereunder without additional cost to either party.
(e)    The Employers make no representation or warranty and shall have no liability to the Executive or any other person for violations in form if any provisions relating to  the form of this Agreement are determined to constitute deferred compensation subject to Section 409A of the Code but do not satisfy an exemption from, or the conditions of, such Section.
(f)    Notwithstanding anything in this Section 6 to the contrary, all payments which can be paid under this Agreement earlier than the periods provided in Sections 6(a) or (c) or otherwise under this Agreement upon termination of employment shall be paid within five (5) days from the Date of Termination, or if later, satisfaction of the Release Condition, subject to compliance to the extent necessary with any timing requirements of Sections 409A of the Code. 
7.    Confidential Information, Noncompetition and Cooperation.
(a)    Confidential Information.  As used in this Agreement, “Confidential Information” means information belonging to the Employers which is of value to the Employers in the course of conducting its business and the disclosure of which could result in a competitive or other disadvantage to the Employers.  Confidential Information includes, without limitation, financial information, reports, and forecasts; inventions, improvements and other intellectual property; trade secrets; know‐how; designs, processes or formulae; software; market or sales information or plans; customer lists; and business plans, prospects and opportunities (such as possible acquisitions or dispositions of businesses or facilities) which have been developed by the management of the Employers.  Confidential Information includes information developed by the Executive in the course of the Executive’s employment by the Employers, as well as other information to which the Executive may have access in connection with the Executive’s employment.  Confidential Information also includes the confidential information of others with which the Employers have a business relationship.  Notwithstanding the foregoing, Confidential Information does not include information in the public domain, unless the presence of such information in the public domain is due to breach of the Executive’s duties under Section 7(b).
(b)    Confidentiality.  The Executive understands and agrees that the Executive’s employment creates a relationship of confidence and trust between the Executive and the Employers with respect to all Confidential Information.  At all times, both during the Executive’s employment with the Employers and after its termination, the Executive will keep in confidence and trust all such Confidential Information, and will not use or disclose any such Confidential Information without the written consent of the Employers, except as may be necessary in the ordinary course of performing the Executive’s duties to the Employers.
(c)    Documents, Records, etc.  All documents, records, data, apparatus, equipment and other physical property, whether or not pertaining to Confidential Information, 

12

which are furnished to the Executive by the Employers or are produced by the Executive in connection with the Executive’s employment will be and remain the sole property of the Employers.  The Executive will return to the Employers all such materials and property as and when requested by the Employers.  In any event, the Executive will return all such materials and property immediately upon termination of the Executive’s employment for any reason.  The Executive will not retain any such material or property or any copies thereof after such termination.
(d)    Noncompetition and Nonsolicitation.  During the Executive’s employment with the Employers and for 15 months thereafter, regardless of the reason for the termination, the Executive (i) will not, directly or indirectly, whether as owner, partner, shareholder, consultant, agent, employee, co-venturer or otherwise, engage, participate, assist or invest in any Competing Business (as hereinafter defined); (ii) will refrain from directly or indirectly employing, attempting to employ, recruiting or otherwise soliciting, inducing or influencing any person to leave employment with the Employers (other than terminations of employment of subordinate employees undertaken in the course of the Executive’s employment with the Employers); and (iii) will refrain from soliciting or encouraging any customer or supplier with whom the Executive was in contact or conducted business during the Term to terminate or otherwise modify adversely its business relationship with the Employers.  The Executive understands that the restrictions set forth in this Section 7(d) are intended to protect the Employers’ interest in their Confidential Information and established employee, customer and supplier relationships and goodwill, and agrees that such restrictions are reasonable and appropriate for this purpose.  For purposes of this Agreement, the term “Competing Business” shall mean any publicly listed REIT or non-listed, publicly registered REIT in the business of primarily owning, operating, acquiring or developing multifamily real estate properties within 35 miles of any real estate property owned, operated or developed by the Employers.  The Executive acknowledges that his work with the Employers involves performing services relating to all multifamily real estate properties owned, operated or developed by the Employers.  Notwithstanding the foregoing, the Executive may own up to one percent (1%) of the outstanding stock of a publicly held corporation which constitutes or is affiliated with a Competing Business.
(e)    Non-Disparagement.  The Executive agrees that during and after his employment with the Employers, he shall not make any disparaging remarks concerning the Employers or any of their affiliates, subsidiaries or current or former officers, directors, shareholders or employees.  The foregoing non-disparagement obligation shall not in any way affect the Executive’s obligation to testify truthfully in any legal, regulatory, or administrative proceedings.  The Employers agree, upon the termination of the Executive’s employment with the Employers, to provide a professional reference for the Executive at the request of the Executive, in such form as may reasonably be requested by the Executive and consistent with the Employers’ obligation for truthfulness, unless the Employers terminate the Executive’s employment for Cause.
(f)    Third-Party Agreements and Rights.  The Executive hereby confirms that the Executive is not bound by the terms of any agreement with any previous employer or other party which restricts in any way the Executive’s use or disclosure of information or the 

13

Executive’s engagement in any business.  The Executive represents to the Employers that the Executive’s execution of this Agreement, the Executive’s employment with the Employers and the performance of the Executive’s proposed duties for the Employers will not violate any obligations the Executive may have to any such previous employer or other party.  In the Executive’s work for the Employers, the Executive will not disclose or make use of any information in violation of any agreements with or rights of any such previous employer or other party, and the Executive will not bring to the premises of the Employers any copies or other tangible embodiments of non-public information belonging to or obtained from any such previous employment or other party; provided, however, that this paragraph shall not apply to the Executive’s employment with Behringer Harvard or any materials or information attributable to such employment.
(g)    Litigation and Regulatory Cooperation.  During and after the Executive’s employment, the Executive shall cooperate fully with the Employers in the defense or prosecution of any claims or actions now in existence or which may be brought in the future against or on behalf of the Employers which relate to events or occurrences that transpired while the Executive was employed by the Employers.  The Executive’s full cooperation in connection with such claims or actions shall include, but not be limited to, being available to meet with counsel to prepare for discovery or trial and to act as a witness on behalf of the Employers at mutually convenient times.  During and after the Executive’s employment, the Executive also shall cooperate fully with the Employers in connection with any investigation or review of any federal, state or local regulatory authority as any such investigation or review relates to events or occurrences that transpired while the Executive was employed by the Employers.  The Employers shall reimburse the Executive for any reasonable out‐of‐pocket expenses incurred in connection with the Executive’s performance of obligations pursuant to this Section 7(g).  The foregoing cooperation obligation shall not in any way affect the Executive’s obligation to testify truthfully in any legal, regulatory or administrative proceedings. 
(h)    Injunction.  The Executive agrees that it would be difficult to measure any damages caused to the Employers which might result from any breach by the Executive of the promises set forth in this Section 7, and that in any event money damages would be an inadequate remedy for any such breach.  Accordingly, subject to Section 8 of this Agreement, the Executive agrees that if the Executive breaches, or proposes to breach, any portion of this Agreement, the Employers shall be entitled, in addition to all other remedies that they may have, to an injunction or other appropriate equitable relief to restrain any such breach without showing or proving any actual damage to the Employers.
8.    Arbitration of Disputes.  Any controversy or claim arising out of or relating to this Agreement or the breach thereof or otherwise arising out of the Executive’s employment or the termination of that employment (including, without limitation, any claims of unlawful employment discrimination whether based on age or otherwise, but excluding equitable enforcement of restrictive covenants) shall, to the fullest extent permitted by law, be settled by arbitration in accordance with the JAMS Rules in Texas.  Absent an award to the contrary that is consistent with applicable law, the fees and expenses of the arbitration shall be paid equally by each respective party, and each party shall be responsible for its/his own costs.  Judgment upon 

14

the award rendered by the arbitrator may be entered in any court having jurisdiction thereof.  This Section 8 shall be specifically enforceable.
9.    Consent to Jurisdiction.  To the extent that any court action is permitted consistent with or to enforce Section 8 of this Agreement, the parties hereby consent to the jurisdiction of the courts of the State of Texas and the United States District Court for the Northern District of Texas.  Accordingly, with respect to any such court action, the Executive (a) submits to the personal jurisdiction of such courts; (b) consents to service of process; and (c) waives any other requirement (whether imposed by statute, rule of court, or otherwise) with respect to personal jurisdiction or service of process.
10.    Clawback.  The payment and benefits provided to the Executive under Sections 2(b) and (c) of this Agreement shall be subject to clawback by the Employers (i) to the extent required by applicable law, or (ii) in the event the Executive’s intentional misconduct pertaining to any financial reporting requirement under the Federal securities laws results in the Employers being required to prepare and file an accounting restatement with the SEC, other than a restatement due to changes in accounting policy and any misconduct or failure by any person other than the Executive.
11.    Integration.  This Agreement constitutes the entire agreement between the parties with respect to the subject matter hereof and supersedes all prior agreements between the parties concerning such subject matter.
12.    Withholding.  All payments made by the Employers to the Executive under this Agreement shall be net of any tax or other amounts required to be withheld by the Employers under applicable law.
13.    Successor to the Executive.  This Agreement shall inure to the benefit of and be enforceable by the Executive’s personal representatives, executors, administrators, heirs, distributees, devisees and legatees.  In the event of the Executive’s death or disability prior to the completion by the Employers of all payments due him under this Agreement, the Employers shall continue such payments to the Executive’s beneficiary designated in writing to the Employers prior to his death (or to his estate, if the Executive fails to make such designation), or in the case of disability, his legal guardian or representative.
14.    Enforceability.  If any portion or provision of this Agreement (including, without limitation, any portion or provision of any section of this Agreement) shall to any extent be declared illegal or unenforceable by a court of competent jurisdiction, then the remainder of this Agreement, or the application of such portion or provision in circumstances other than those as to which it is so declared illegal or unenforceable, shall not be affected thereby, and each portion and provision of this Agreement shall be valid and enforceable to the fullest extent permitted by law.
15.    Survival.  Sections 7, 8, 9, 10, 11, 12, 14, 16, 17, 19 and 21 of this Agreement shall survive the termination of this Agreement and/or the termination of the Executive’s employment; provided, however, that this Agreement shall not terminate until all amounts due 

15

Executive are paid or otherwise provided to Executive, and provided further, that if the Executive remains employed by the Employers after the expiration of the Term, Sections 7(d), (e), (g) and (h) and Section 8 shall not survive.
16.    Waiver.  No waiver of any provision hereof shall be effective unless made in writing and signed by the waiving party.  The failure of any party to require the performance of any term or obligation of this Agreement, or the waiver by any party of any breach of this Agreement, shall not prevent any subsequent enforcement of such term or obligation or be deemed a waiver of any subsequent breach.
17.    Notices.  Any notices, requests, demands and other communications provided for by this Agreement shall be sufficient if in writing and delivered in person or sent by a nationally recognized overnight courier service or by registered or certified mail, postage prepaid, return receipt requested, to the Executive at the last address the Executive has filed in writing with the Employers or, in the case of the Employers, at their main offices, attention of the Board, or electronically to the Chairman of the Board.
18.    Amendment.  This Agreement may be amended or modified only by a written instrument signed by the Executive and by a duly authorized representative of the Employers.
19.    Governing Law.  This is a Texas contract and shall be construed under and be governed in all respects by the laws of the State of Texas, without giving effect to the conflict of laws principles of such State.  With respect to any disputes concerning federal law, such disputes shall be determined in accordance with the law as it would be interpreted and applied by the United States Court of Appeals for the Fifth Circuit.
20.    Counterparts.  This Agreement may be executed in any number of counterparts, each of which when so executed and delivered shall be taken to be an original; but such counterparts shall together constitute one and the same document.
21.    Successor to the Company and the Operating Partnership.  Each of the Company and the Operating Partnership shall require any successor (whether direct or indirect, by purchase, merger, consolidation or otherwise) to all or substantially all of the business or assets of the Company or the Operating Partnership (including, but not limited to, in connection with any Change in Control or otherwise) expressly to assume and agree to perform this Agreement to the same extent that the Company or the Operating Partnership would be required to perform it if no succession had taken place.  Failure of the Company or the Operating Partnership to obtain an assumption of this Agreement at or prior to the effectiveness of any succession shall be a material breach of this Agreement.
22.    Gender Neutral.  Wherever used herein, a pronoun in the masculine gender shall be considered as including the feminine gender unless the context clearly indicates otherwise.

16

IN WITNESS WHEREOF, the parties have executed this Agreement on the date first above written.
BEHRINGER HARVARD MULTIFAMILY REIT I, INC.
By:    /s/ Mark T. Alfieri    
Name: Mark T. Alfieri
Title:    President and Chief Operating Officer
BEHRINGER HARVARD MULTIFAMILY OPERATING PARTNERSHIP I LP

By:    BHMF, Inc.

By:    /s/ Mark T. Alfieri    
Name: Mark T. Alfieri
		
	Title:
	President and Chief Operating Officer

/s/ Ross Odland    
Ross Odland

17EXH 10.6 CIO STOCK AGREEMENT

Exhibit 10.6
RESTRICTED STOCK AWARD AGREEMENT

THIS RESTRICTED STOCK AWARD AGREEMENT (this Agreement) is entered into as of this 13th day of September, 2013 (the Effective Date) by and between UNITED INSURANCE HOLDINGS CORP., a Delaware corporation (the Company), and ANDREW SWENSON, an individual residing in the State of Florida (the Participant).

RECITALS
WHEREAS, the Company is a Delaware corporation with authorized capital stock as follows:
50,000,000 shares of Common Stock, par value $0.0001 per share (Common Stock), and 1,000,000 shares of Preferred Stock, par value $0.0001 per share, of which 125,000 shares are designated as Series A Junior Participating Preferred Stock;
WHEREAS, the Company and the Participant entered into that certain Employment Agreement, dated as of August 26, 2013 (the Employment Agreement), whereby the Participant shall serve as the Chief Information Officer of the Company; and
WHEREAS, both the Company and the Participant wish to enter into this Agreement to memorialize, and set forth in the specific terms of, the grant of restricted Common Stock described in the Employment Agreement.
NOW, THEREFORE, in consideration of the foregoing recitals and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto agree as follows:
		
	1.
	Grant of Restricted Shares.  The Company hereby grants to the Participant 2167 shares of restricted Common Stock (the Restricted Shares), subject to the terms and conditions of this Agreement.

2.Vesting.

		
	a.
	Subject to Section 2.c. of this Agreement, the Restricted Shares will fully vest on September 13, 2014 (the Vesting Date); provided that the Participant is continuously employed by the Company from the Effective Date through the Vesting Date.

		
	b.
	If the Participant's employment with the Company terminates for any reason, other than those reasons provided in Section 2.c., before the Vesting Date, the Restricted Shares as of the date of such termination will immediately be forfeited as of the date of such termination.

		
	c.
	Notwithstanding Section 2.b. above, in the event that the Participant's employment with the Company terminates due to the Company's termination of the Participant's employment without Cause (as defined in the Employment Agreement) (a Covered Termination), the Restricted Shares that would vest on the Vesting Date, if not already vested, automatically and immediately vest (the Termination Payment) as of the later of (A) the date of the termination of the Participant's employment with the Company as a result of the events described in this Section 2.c. or (B) the date on which the release described in Section 4.7 of the Employment Agreement becomes effective.

		
	3.
	Issuance of Certificates/Escrow.

		
	a.
	The Company will issue in the Participant's name certificate(s) evidencing the Restricted Shares as soon as practicable following the Participant's execution of this Agreement.  In addition to any other legends placed on the certificate(s), such certificate(s) will bear the following legend:

“The sale or other transfer of the shares of common stock represented by this certificate, whether voluntary or by operation of law, is subject to the restrictions set forth in the Restricted Stock Award Agreement, dated as of September 13, 2014, by and between United Insurance Holdings Corp. and the registered owner hereof.  A copy of such agreement may be obtained from the Secretary of United Insurance Holdings Corp.”

		
	b.
	Upon the vesting of the Restricted Shares, the Participant will be entitled to a new certificate for the shares that have vested, without the foregoing legend, upon making a request for such certificate to the Secretary of the Company.

		
	c.
	The certificates representing the Restricted Shares will be held in escrow by the Company, as escrow agent.  The Company will give the Participant a receipt for the Restricted Shares held in escrow that will state that the Company holds such shares in escrow for the Participant's account, subject to the terms of this Agreement, and the Participant will give the Company a stock power for such Restricted Shares duly endorsed in blank which will be used in the event any of such shares are forfeited in whole or in part.  As soon as practicable after each Vesting Date, the Restricted Shares that have vested upon such Vesting Date will cease to be held in escrow, and certificate(s) for such number of Restricted Shares will be delivered to the Participant or, in the case of the Participant's death, to the Participant's estate. 

		
	4.
	Status of Participant.  This Agreement shall not confer upon the Participant any right to continue in the employ of the Company, nor to interfere in any way with the right of the Company to terminate the employment of the Participant at any time.

		
	5.
	Nontransferability.  The Participant may not sell, transfer, assign, pledge, alienate, or hypothecate any of the Participant's Restricted Shares until they are vested, other than as set forth herein and any such attempted sale, transfer, assignment, pledge, alienation, or hypothecation will be null and void.

		
	6.
	Voting and Dividends.  The Participant may exercise full voting rights and will receive all dividends and other distributions paid with respect to the Restricted Shares, whether or not vested, in each case so long as the applicable record date occurs before any forfeiture of such shares.  If, however, any such dividends or distributions are paid in shares of Company capital stock, such shares will be subject to the same risk of forfeiture, restrictions on transferability and other terms of this Agreement as are the Restricted Shares with respect to which they were paid. 

		
	7.
	Tax Matters.

		
	a.
	The Participant (and not the Company) shall be responsible for the Participant's federal, state, local or foreign tax liability and any of the Participant's other tax consequences that may arise as a result of the transactions contemplated by this Agreement.  The Participant shall rely solely on the determinations of the Participant's tax advisors or the Participant's own determinations, and not on any statements or representations by the Company or any of its agents, with regard to all such tax matters.

		
	b.
	To the extent that the receipt of the Restricted Shares or the vesting of the Restricted Shares results in income to the Participant for federal, state or local income tax purposes, the Participant shall deliver to the Company at the time the Company is obligated to withhold taxes in connection with such receipt or vesting, as the case may be, such amount as the Company requires to meet its withholding obligation under applicable tax laws or regulations, and if the Participant fails to do so, the Company has the right and authority to deduct or withhold from other compensation payable to the Participant an amount sufficient to satisfy its withholding obligations.  The Participant may satisfy the withholding requirement, in whole or in part, by electing to have the Company withhold for its own account that number of Restricted Shares otherwise deliverable to the Participant from escrow hereunder on the date the tax is to be determined having an aggregate fair market value on the date the tax is to be determined equal to the minimum statutory total tax that the Company must withhold in connection with the vesting of such Restricted Shares.  The Participant's election must be irrevocable, in writing, and submitted to the Secretary of the Company before the applicable Vesting Date.  The fair market value of any fractional Restricted Shares not used to satisfy the withholding obligation (as determined on the date the tax is determined) will be paid to the Participant in cash.

		
	8.
	Certain Code Consequences.

		
	a.
	Notwithstanding any other provision of this Agreement, if any portion of the Termination Payment or any other payment under this Agreement, or under any other agreement with or plan of the Company, including, without limitation, the Employment Agreement or any subsequently adopted equity incentive plan (the Incentive Stock Plans) or any stock option agreement (the Stock Option Agreements) between the Company and the Participant entered into pursuant to an Incentive Stock Plan (in the aggregate 

Total Payments), would constitute an “excess parachute payment,” then the Total Payments to be made to the Participant shall be either (A) delivered in full or (B) delivered in an amount such that the value of the aggregate Total Payments that the Participant is entitled to receive shall be One Dollar ($1.00) less than the maximum amount that the Participant may receive without becoming subject to the tax imposed by Section 4999 of the Code (or any successor provision) (the Excise Tax), whichever of the foregoing results in the receipt by the Participant of the greatest benefit on an after-tax basis (taking into account the applicable federal, state and local income taxes, including any Section 409A Tax, and the Excise Tax).  If the provisions of Sections 280G and 4999 (or any successor provisions) are repealed without succession, then this Section 8(a) shall be of no further force and effect.

		
	b.
	For purposes of this Agreement, the terms “excess parachute payment” and “parachute payments” shall have the meanings assigned to them in Section 280G of the Code (or any successor provision) and such “parachute payments” shall be valued as provided therein.  Present value for purposes of this Agreement shall be calculated in accordance with Section 1274(b)(2) of the Code (or any successor provision).  Within 40 days following a Covered Termination or notice by one party to the other of its belief that there is a payment or benefit due the Participant that will result in an “excess parachute payment”, the Participant and the Company, at the Company's expense, shall obtain the opinion (which need not be unqualified) of nationally recognized tax counsel (the National Tax Counsel) selected by the Company's independent auditors and acceptable to the Participant in the Participant's sole discretion (which may be regular outside counsel to the Company), which opinion sets forth (A) the amount of the Base Period Income, (B) the amount and present value of Total Payments, (C) the amount and present value of any excess parachute payments, and (D) the net after-tax proceeds to the Participant, taking into account the tax imposed under Code Section 4999, if (x) the Total Payments were delivered in accordance with clause (A) of Section 8(a) or (y) the Total Payments were delivered in accordance with clause (B) of Section 8(a).  As used in this Section 8(b), the term “Base Period Income” means an amount equal to the Participant's “annualized includible compensation for the base period” as defined in Section 280G(d)(1) of the Code (or any successor provision).  For purposes of such opinion, (x) the value of any noncash benefits or any deferred payment or benefit shall be determined by the Company's independent auditors in accordance with the principles of Sections 280G(d)(3) and (4) of the Code (or any successor provisions), which determination shall be evidenced in a certificate of such auditors addressed to the Company and the Participant, and (y) the Participant shall be deemed to pay federal income tax and employment taxes at the highest marginal rate of federal income and employment taxation, and state and local income taxes at the highest marginal rate of taxation in the state or locality of Participant's domicile (in both cases determined in the calendar year in which the Covered Termination occurs or notice described above is given, whichever is earlier), net of the maximum reduction in federal income taxes that may be obtained from the deduction of such state and local taxes.  The opinion of the National Tax Counsel shall be dated as of the Termination Date and addressed to the Company and the Participant and shall be binding upon the Company and the Participant.  If such opinion determines that the Total Payments should be delivered in accordance with clause (B) of Section 8(a), then the Total Payments shall be reduced or eliminated as specified by the Participant in writing delivered to the Company within 30 days of the Participant's receipt of such opinion so that under the bases of calculations set forth in such opinion no portion of such Total Payments would be subject to the Excise Tax; provided that if Participant's exercise of the right to specify the payments or benefits to be reduced or eliminated would result in additional tax being due under Section 409A of the Code or, if the Participant fails to so notify the Company, then the payments or benefits included in the Total Payments shall be reduced or eliminated so that under the bases of calculations set forth in such opinion no portion of such Total Payments would be subject to the Excise Tax by applying the following principles, in order: (x) the payment or benefit with the higher ratio of the parachute payment value to present economic value (determined using reasonable actuarial assumptions) shall be reduced or eliminated before a payment or benefit with a lower ratio; (y) the payment or benefit with the later possible payment date shall be reduced or eliminated before a payment or benefit with an earlier payment date; and (z) cash payments shall be reduced prior to non-cash benefits; provided further that if the foregoing order of reduction or elimination would result in additional tax being due under Section 409A of the Code, then the reduction shall be made pro rata among the payments or benefits included in the Total Payments (on the basis of the relative present value of the parachute payments).  If the National Tax Counsel so requests in connection with the opinion required by this Section 8(b), the Participant and the Company shall obtain, at the Company's expense, and the National Tax Counsel may rely on, in providing the opinion, the advice of a firm of recognized executive compensation consultants as to the reasonableness of any item of compensation to be received by the Participant solely with respect to its status under Section 280G 

of the Code (or any successor provision) and the regulations thereunder.  Notwithstanding the foregoing, the provisions of this Section 8(b), including the calculations, notices and opinions provided for herein, shall be based upon the conclusive presumption that the following are reasonable: (1) the compensation and benefits provided for in the Employment Agreement and this Agreement and (2) any other compensation earned prior to the Termination Date by the Participant pursuant to the Company's compensation programs if such payments would have been made in the future in any event, even though the timing of such payment is triggered by the Covered Termination or the Termination Date. 
 
		
	c.
	In the event that, upon any audit by the Internal Revenue Service, or by a state or local taxing authority, of the Total Payments it is finally determined that the Participant owes more Excise Tax than was contemplated in the opinion of the National Tax Counsel with respect to the amount of Total Payments delivered to the Participant, then the Participant and the Company, at the Company's expense, shall direct the National Tax Counsel to re-issue its opinion taking into account the audit findings.  Thereafter, appropriate adjustments shall be made under this Agreement, in the manner determined by the National Tax Counsel, such that the net amount that is payable to the Participant reflects the intent of the parties as expressed in this Section 8.  If the Company is required to make a payment to the Participant, then such payment shall be paid following the date of the final determination by a court or the Internal Revenue Service and within 30 days after the date the Participant provides the Company a written request for reimbursement thereof (accompanied by proof of taxes paid), but in no event shall the reimbursement be made later than the end of the calendar year following the year in which the Participant remits the excise tax to the Internal Revenue Service.

		
	d.
	The Company will bear all costs associated with the National Tax Counsel and will indemnify and hold harmless the National Tax Counsel of and from any and all claims, damages, and expenses resulting from or relating to the National Tax Counsel's determinations pursuant to this Section 8, except for claims, damages or expenses resulting from the gross negligence or willful misconduct of such firm.

		
	9.
	Miscellaneous.

		
	a.
	Each party to this Agreement (i) consents to the personal jurisdiction of the state and federal courts having jurisdiction in Pinellas County, Florida, (ii) stipulates that the proper, exclusive, and convenient venue for any legal proceeding arising out of this Agreement is in the state or federal courts located in Pinellas County, Florida, and (iii) waives any defense, whether asserted by a motion or pleading, that any such court is an improper or inconvenient venue.

		
	b.
	No legal action or proceeding may be brought with respect to this Agreement more than one year after the later of (i) the last date on which the act or omission giving rise to the legal action or proceeding occurred, or (ii) the date on which the individual bringing such legal action or proceeding had knowledge or should have had knowledge of such act or omission.  At the Company's election, such action or other legal proceeding shall be heard pursuant to a bench trial and, if so elected, the parties to such proceeding shall waive their rights to a trial by jury. 

		
	c.
	This Agreement shall be binding upon, and inure to the benefit of, the Company and its successors and assigns, and upon any person acquiring, whether by merger, consolidation, purchase of assets or otherwise, all or substantially all of the Company's assets and business, and upon the Participant's estate or any individual who obtains a right hereunder by will or the laws of descent and distribution.

		
	10.
	Investment Representation Statement.  The Participant must complete the Investment Representation Statement attached hereto as Exhibit A to receive the award described herein.

		
	11.
	Certain Definitions.  For purposes of this Agreement:

		
	a.
	Code.  The term Code means the Internal Revenue Code of 1986, including any amendments thereto or successor tax codes thereof.

		
	b.
	Employer.  The term Employer means the Company and/or any subsidiary of the Company that employed the Executive immediately prior to the Termination Date.

		
	c.
	Section 409A Tax.  The term Section 409A Tax means the sum of (i) the 20 percent additional income tax described in Code Section 409A(a)(1)(B)(I)(ii) to the extent such additional tax is incurred by the Executive as a result of a Section 409A Violation, (ii) the interest determined to be due under Code Section 409A(a)(1)(B)(I)(i) in connection with the same Section 409A Violation, and (iii) any penalties incurred by the Executive in connection with the same Section 409A Violation, provided that the Executive pays such additional income tax and related interest and penalties promptly upon being notified that such amount is due.  Section 409A Tax does not include any interest or penalties assessed by the Internal Revenue Service on the Executive that are attributable to Executive's willful misconduct or negligence.

		
	d.
	Section 409A Violation.  The term Section 409A Violation means a violation of Section 409A of the Code that occurs in connection with any payment or benefit (or any acceleration of any payment or benefit) in connection with this Agreement or the fact that a provision of any benefit plan or program of the Company or the Employment Agreement fails to comply with Code Section 409A, and the Executive incurs additional tax under Section 409A of the Code as a result of such violation.

		
	e.
	Termination Date.  The term Termination Date means the effective date of the Executive's termination of employment pursuant to the Employment Agreement.  

	
		
	COMPANY:
	PARTICIPANT:

	 
	 

	UNITED INSURANCE HOLDINGS CORP., a Delaware corporation

By:  /s/ John L. Forney                    
Print Name: John Forney
Print Title: Chief Executive Officer
	ANDREW SWENSON

  /s/ Andrew Swenson                                                     
ANDREW SWENSON

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