Document:

Exhibit

Exhibit 10.1

EMERSON ELECTRIC CO.
SAVINGS INVESTMENT RESTORATION PLAN II

WHEREAS, Emerson Electric Co. (“Company”) desires to adopt the Supplemental Executive Savings Investment Restoration Plan II (“Plan”) to attract and retain selected executives and reflect the closing of participation in the Emerson Electric Co. Retirement Plan;
NOW, THEREFORE, the Plan is adopted, effective January 1, 2019, to read as follows:
SECTION I
DEFINITIONS
A.    “Account” means the book entry account established for each Participant under Section IV.
B.    “Annual Election” means the agreement entered into between a Participant and the Company, on the form prescribed by the Company, in which the Participant elects the amount of Compensation to be deferred and such other matters as the Company shall determine from time to time.
C.    “Beneficiary” means the person designated to receive a death benefit under the Plan.
D.    “Change of Control” means a change in the ownership or effective control of a corporation or a change in the ownership of a substantial portion of the assets of a corporation under Code Section 409A to the fullest extent allowed by such Section and the regulations promulgated thereunder.  
E.    “Code” means the Internal Revenue Code of 1986, as amended.
F.    “Committee” means the Compensation Committee of the Board of Directors of the Company.
G.    “Company” means Emerson Electric Co., a Missouri Corporation.
H.    “Compensation” means, for any calendar year, all cash pay for such year received by an Employee from the Employer plus amounts contributed through a salary reduction arrangement to a qualified Plan which meets the requirements of Section 401(k) of the Code or to a cafeteria plan which meets the requirements of Section 125 of the Code, but excluding any reimbursed item, any payment under any Emerson Electric Co. Incentive Shares Plan or Emerson Electric Co. Stock Option Plan, any payment for a stock appreciation right, any payment deferred for more than one year and any severance pay.  Compensation shall include amounts deferred by the Employee under this Plan.
I.    “Employee” means any person employed by an Employer who is not entitled to accrue (or continue to accrue) a benefit under the Emerson Electric Co. Retirement Plan or the Emerson Process Management Power & Water Solutions, Inc. Pension Plan solely because of the soft freeze of such plans.
J.    “Employer” means the Company and any of its subsidiaries or affiliates which has, with the consent of the Board of Directors of the Company, adopted the Plan.
K.    “Employment” means employment with an Employer.
L.    “ERISA” means the Employee Retirement Income Security Act of 1974, as amended.
M.    “ESIP” means the Emerson Electric Co. Employee Savings Investment Plan.
N.    “Exchange Act” means the Securities Exchange Act of 1934, as amended, and the rules and regulations thereunder.

O.    “Participant” means an eligible Employee who has timely filed a Participation Agreement and an Annual Election and for whom the Company maintains an Account pursuant to the provisions of the Plan.
P.    “Participation Agreement” means the written document by which an eligible Employee agrees to be subject to the terms of the Plan, designates his Beneficiary(ies), and elects the form of payment in the event benefits become payable due to his termination of Employment at retirement.
Q.    “Plan” means this Emerson Electric Co. Savings Investment Restoration Plan II.
R.    “Reporting Person” means an Employee who is required to file reports with the Securities and Exchange Commission pursuant to Section 16(a) of the Exchange Act.
S.    “Specified Employee” means a key employee (as defined in Code Section 416(i) without regard to Code Section 416(i)(5)) determined in accordance with the meaning of such term under Code Section 409A and the regulations promulgated thereunder.  
T.    “Total and Permanent Disability” shall have the same meaning as set forth in the ESIP.  
U.    “Unforeseeable Emergency” means a severe financial hardship to a Participant resulting from an illness or accident of the Participant, his spouse, his beneficiary, or a dependent (as defined in Code Section 152(a)) of the Participant, loss of the Participant's property due to casualty, or other similar extraordinary and unforeseeable circumstances arising as a result of events beyond the control of the Participant.
V.    “Years of Service” means the most recent consecutive full years of Employment (commencing with the first day of an individual’s Employment and each anniversary thereof).
SECTION II
ELIGIBILITY AND PARTICIPATION
Eligibility for participation in the Plan shall be limited each calendar year to those Employees who have been selected by the Committee from time to time.  Such Employees may participate in the Plan by executing a Participation Agreement and filing an Annual Election in accordance with Section III.  
SECTION III
DEFERRAL OF COMPENSATION
A.    Each Participant may elect to defer up to twenty percent (20%) of his Compensation for a calendar year.
B.    Each year a Participant may elect the amount of Compensation to be deferred by filing an irrevocable Annual Election with the Committee no later than the December 31 prior to the calendar year for which such Compensation would otherwise be earned.  If a Participant fails to timely file an Annual Election, he shall be deemed to have elected not to make any deferrals for the applicable Plan Year.
C.    Notwithstanding Paragraph B, an Employee who first becomes eligible to participate in the Plan during a Plan Year may file an Annual Election to defer amounts pursuant to Sections III.A within thirty (30) days after the date he first becomes eligible to participate in the Plan but only with respect to the Compensation relating to services to be performed subsequent to such election.  This initial Annual Election rule also applies to a Participant who stopped participating in the Plan without receiving a distribution from the Plan either as a result of termination of employment or transferring to a position in which the Participant was ineligible to participate in the Plan, provided the Participant has not been an active Participant in the Plan (or any other nonqualified account balance plan maintained by the Company or any member of the Company’s controlled group) for at least 24 months.

SECTION IV
ESTABLISHMENT OF ACCOUNTS
A.    The Committee will establish an Account for the benefit of each Participant.  As of each payroll date, the Account of each Participant will be credited with the amount by which the Participant elected to defer his Compensation pursuant to Section III.  
B.    If a Participant elects to defer at least five percent (5%) of his Compensation for a calendar year under Section III.A, the Account of such Participant will be credited, at such time as may be determined by the Company, with an amount equal 7.5% of such Participant’s Compensation for such calendar year, reduced by the sum of:
(i)the maximum matching amount such Participant could have received under the ESIP for such calendar year, without regard to the actual contributions made by such Participant under the ESIP for such calendar year; plus
(ii)any other contribution for such calendar year made by the Employer on behalf of such Participant pursuant to Section 4.3.4 of the ESIP, as in effect on January 1, 2019 (or any amended or successor provision thereto), which is not described in paragraph (i).
C.    Any Participant with a balance in the Emerson Electric Co. Savings Investment Restoration Plan on January 1, 2019 may be credited with an opening balance credit not to exceed 5% of such Participant’s Compensation for 2018.
D.    The Account will be reduced by any payments made under Section VIII.
E.    Neither the Plan nor any Account shall hold any actual funds or assets.  

SECTION V
INVESTMENT INDICES
The value of each Participant’s Account shall be measured against the underlying investment funds of the ESIP in the proportions that the Participant’s ESIP accounts are invested in the underlying funds of the ESIP.
SECTION VI
CREDITING OF INVESTMENT GAINS AND LOSSES
As of the end of each calendar quarter, the Committee shall credit or debit each Participant’s Account, as the case may be, with the appropriate amount of gain or loss assuming such Account had been invested in the underlying funds in the ESIP in the manner set forth under Section V.
SECTION VII
VESTING
A.    A Participant shall be fully vested in the portion of his Account attributable to amounts credited under Section IV.A.  A Participant shall be vested in the portion of his Account attributable to amounts credited under Section IV.B pursuant to the following schedule:

          Years of Service        Percent Vesting

   Less than 1               0%
1             20%
2             40%
3             60%
4             80%
5            100%

B.    Notwithstanding the foregoing, the Participant shall be fully vested in his Accounts in the event of any of the following:  (i) retirement with the approval of the Committee on or after attainment of age fifty-five (55); (ii) death or Total and Permanent Disability of the Participant; (iii) termination of the Plan; or (iv) a Change of Control.
C.    Subject solely to the provisions of Section VIII.D, a Participant, or such Participant’s Beneficiary, shall be entitled to payment of the portion of his Account attributable to any vested amount credited under Section IV.B only if the Committee, in its sole discretion, determines that the Participant is an executive in good standing at the time the executive terminates Employment.  As a condition precedent to any such payment under the Plan to, or on behalf of, an Employee who becomes eligible to participate in the Plan pursuant to Section II and who is credited with amounts under Section IV.B, the Committee shall determine whether the Participant has retired or otherwise terminated from Employment in good standing and shall communicate its determination to the Plan Administrator.  Such determination shall be final and conclusive.
D.    If a Participant vested in any amount credited under Section IV.B is discharged for cause, engages in activity which results in reputational harm, enters into competition with the Company, or interferes with the relations between the Company and any customer, or engages in any activity that would result in any decrease of, or loss in, sales or earnings by the Company, the rights of such Participant to such amount, including the rights of his Beneficiary thereto amount, will be forfeited, and any such amount that has previously been paid to the Participant or a Beneficiary may be recovered from such person by the Company, unless the Committee determines that such activity is not detrimental to the best interests of the Company.  However, if a Participant ceases such activity and notifies the Committee of this action, then the Committee may restore the Participant’s right to all or part of such amount, and any right of a Beneficiary thereto, within 60 days of said notification, unless the Committee in its sole discretion determines that the prior activity has caused serious injury to the Company, which determination shall be final and conclusive.
SECTION VIII
PAYMENT OF BENEFITS
A.    Unless otherwise provided herein, a Participant shall be paid on the January 1 of the calendar year immediately following the calendar year in which his termination of Employment occurs a single lump cash sum equal to the vested portion of his Account based upon the last valuation under Section V coincident with or immediately preceding such termination of Employment; provided, however, that a Participant whose termination of Employment is due to his retirement shall receive his vested Account in either a lump sum or in up to ten (10) equal annual installments as elected by the Participant on his Participation Agreement.  Installments shall commence on January 1st of the calendar year immediately following the calendar year in which the Participant’s 

retirement occurs.  For purposes of this Plan only, “retirement” means termination of employment on or after age fifty-five (55). 
B.    On the date of the Participant’s death, the vested portion of the Participant’s unpaid Account (if any), based upon the value as of the last valuation under Section V coincident with or immediately preceding the Participant’s death, shall be paid to his Beneficiary.
C.      Notwithstanding Section VIII.A, if the benefit becomes payable due to the Participant’s termination of Employment (other than on account of death) and such Participant is a Specified Employee, payment of such benefit shall be made or commence on the first day of the seventh month immediately following the Participant’s termination of Employment if such date is later than the date such deferred amounts would otherwise be paid or commence to be paid. 
D.    Notwithstanding the preceding, in the event of a Change of Control, all future deferrals shall cease and each Participant shall be paid a single lump cash sum equal to the amount credited to his Account as of the last day of the month coincident with or immediately preceding the Change of Control.  Whether a Change of Control has occurred shall be governed by Code Section 409A and the regulations and any guidance promulgated thereunder.
E.    Upon the request of a Participant and a showing of an Unforeseeable Emergency, the Committee may, if it deems advisable in its sole and absolute discretion, distribute on behalf of the Participant any portion of the Participant’s Account, but in no event more than the amount necessary to satisfy such emergency plus amounts necessary to pay taxes reasonably anticipated as a result of the distribution, after taking into consideration the extent to which such hardship is or may be relieved through reimbursement or compensation by insurance or otherwise, by liquidation of the Participant’s assets (to the extent the liquidation of such assets would not itself cause severe financial hardship) or by cessation of deferrals under this Plan.  If the Participant is a Reporting Person, such request must be made at least six (6) months after the date of the Participant’s most recent election, with respect to any plan of the Company, that effected a “discretionary transaction” that was an “acquisition,” as those terms are defined in Rule 16b-3 under the Exchange Act.  Any amount which becomes payable by reason of an Unforeseeable Emergency shall be distributed as a lump sum on the date the Committee approves the hardship distribution and the Participant’s Account shall be reduced by the amount so distributed and/or utilized.  
F.    In all cases in which amounts are payable upon a fixed date, payment is deemed to be made upon the fixed date if the payment is made on such date or a later date within the same calendar year or, if later, by the 15th day of the third calendar month following the specified date (provided the Participant is not permitted, directly or indirectly, to designate the taxable year of payment).  In addition, a payment is treated as made upon the date specified under the Plan if the payment is made no earlier than 30 days before the designated payment date and the Participant is not permitted, directly or indirectly, to designate the taxable year of payment.  
G.    A Participant shall designate on his Participation Agreement one or more Beneficiaries who shall receive the benefit payable under Section VIII.B in the event of the Participant’s death.  A Beneficiary designation may be revoked or amended by a Participant at any time by providing written notice to the Executive Compensation Executive of Emerson.   In the event that a designated Beneficiary predeceases the Participant, benefits shall be payable to the deceased Participant’s estate.

SECTION IX
ADMINISTRATION AND CLAIMS PROCEDURE
A.    The Committee shall have the full power, authority and discretion to construe, interpret and administer all provisions of the Plan and a decision of a majority of the members of the Committee shall govern.
B.    A decision of the Committee may be made by a written document signed by a majority of the members of the Committee or by a meeting of the Committee.  The Committee may authorize any of its members to sign documents or papers on its behalf.
C.    The Committee may appoint such agents, who need not be members of the Committee, as it may deem necessary for the effective exercise of its duties, and may, to the extent not inconsistent herewith, delegate to such agents any powers and duties, both ministerial and discretionary, as the Committee may deem expedient and appropriate.
D.    A Participant who believes that he is being denied a benefit to which he is entitled (hereinafter referred to as “Claimant”) may file a written request for such benefit with the Committee setting forth his claim. The request must be addressed to: Compensation Committee, Emerson Electric Co., 8000 West Florissant, St. Louis, Missouri 63136.
E.    Upon receipt of a claim the Committee shall advise the Claimant that a reply will be forthcoming within ninety (90) days and shall in fact deliver such reply in writing within such period.  The Committee may, however, extend the reply period for an additional ninety (90) days for reasonable cause.  If the claim is denied in whole or in part, the Committee will adopt a written opinion using language calculated to be understood by the Claimant setting forth:
(i)     the specific reason or reasons for denial,
(ii)     the specific references to pertinent Plan provisions on which the denial is based,
(iii)     a description of any additional material or information necessary for the Claimant to perfect the claim and an explanation why such material or such information is necessary,
(iv)     appropriate information as to the steps to be taken if the Claimant wishes to submit the claim for review, including a statement of the claimant’s right to bring a civil action under Section 502(a) of ERISA, following an adverse benefit determination on review, and
(v)    the time limits for requesting a review under Section IX.F and Section IX.G.
F.    Within sixty (60) days after the receipt by the Claimant of the written opinion described above, the Claimant may request in writing that the Chief Executive Officer of the Company review the determination of the Committee.  Such request must be addressed to:  Chief Executive Officer, Emerson Electric Co., 8000 West Florissant, St. Louis, Missouri 63136. The Claimant or his duly authorized representative may, but need not, review the pertinent documents and submit issues and comments in writing for consideration by the Chief Executive Officer.  If the Claimant does not request a review of the Committee’s determination by the Chief Executive Officer within such sixty‐day period, he shall be barred and estopped from challenging the Committee’s determination. 
G.    Within sixty (60) days after the Chief Executive Officer’s receipt of a request for review, the Chief Executive Officer will review the Committee’s determination.  After considering all materials presented by the Claimant, the Chief Executive Officer will render a written opinion, written in a manner calculated to be understood 

by the Claimant, setting forth the specific reasons for the decision, containing specific references to the pertinent Plan provisions on which the decision is based, stating that the Claimant is entitled to receive upon request and free of charge, reasonable access to and copies of, all documents, records and other information relevant to the claim, and stating that the Claimant has a right to bring a civil action under Section 502(a) of ERISA.  If special circumstances require that the sixty‐day time period be extended, the Chief Executive Officer will so notify the Claimant and will render the decision as soon as possible but not later than one hundred twenty (120) days after receipt of the request for review.
SECTION X
MISCELLANEOUS
A.    Plan Year.  The Plan Year shall be the calendar year.
B.    Spendthrift.  No Participant or Beneficiary shall have the right to assign, transfer, encumber or otherwise subject to lien any of the benefits payable or to be payable under this Plan and any attempt to do so shall be null and void.  
C.    Incapacity.  If, in the opinion of the Committee, a person to whom a benefit is payable is unable to care for his affairs because of illness, accident or any other reason, any payment due the person, unless prior claim therefor shall have been made by a duly qualified guardian or other duly appointed and qualified representative of such person, may be paid to some member of the person’s family, or to some party who, in the opinion of the Committee, has incurred expense for such person. Any such payment shall be a payment for the account of such person and shall be a complete discharge of any liability.
D.    Employee Rights.  The Employer, in adopting this Plan, shall not be held to create or vest in any Employee or any other person any benefits other than the benefits specifically provided herein, or to confer upon any Employee the right to remain in the service of the Employer.
E.    Service of Process and Plan Administrator.
(i)    The Vice President‐Law of the Company shall be the agent for service of legal process.
(ii)    The Company shall constitute the Plan Administrator.
F.    Unfunded Plan.  The Plan shall be unfunded.  All payments to a Participant (or the Participant’s Beneficiary) under the Plan shall be made from the general assets of the Employer.  The rights of any Participant to payment shall be those of an unsecured general creditor of the Employer.
G.    Company Rights.  The Company reserves the right to amend or terminate the Plan.  Each Employer may terminate its participation in the Plan at any time.  In the event the Plan is terminated, benefits shall become payable only to the extent permissible under the regulations promulgated by the Secretary of Treasury pursuant to Code Section 409A and in the manner set forth therein.
H.    Validity.  In the event any provision of the Plan is held invalid, void or unenforceable, the same shall not affect, in any respect whatsoever, the validity of any other provision of the Plan.
I.    No Guarantee of Tax Consequences.  While the Company has established and maintains the Plan, the Company makes no representation, warranty, commitment or guarantee concerning the income or other tax consequences of participation in the Plan under federal, state or local law.
J.    Governing Law.  The Plan shall be governed and construed according to the laws of the State of Missouri.

APPROVED BY THE COMPENSATION COMMITTEE OF THE BOARD OF DIRECTORS OF EMERSON ELECTRIC CO. ON JUNE 5, 2018.Exhibit 10.6

 

TENTH AMENDMENT TO THE SECOND RESTATED

AGREEMENT OF LIMITED PARTNERSHIP OF

BLUEROCK RESIDENTIAL HOLDINGS, L.P.

 

August 6, 2018

 

This Tenth Amendment
(this “Amendment”) to the Second Restated Agreement of Limited Partnership of Bluerock Residential Holdings,
L.P., a Delaware limited partnership (the “Partnership”) (as amended, the “Partnership Agreement”),
is entered into effective as of January 1, 2018, by, Bluerock Residential Growth REIT, Inc., a Maryland corporation (the “General
Partner”), in accordance with Article XI of the Partnership Agreement. Capitalized terms used but not defined herein
are used as defined in the Partnership Agreement.

 

R E C I T A L S

 

WHEREAS, the General
Partner is the sole general partner of the Partnership that is governed by the Partnership Agreement;

 

WHEREAS, the General
Partner has determined that this Amendment (i) adds to the obligations of the General Partner and (ii) is required to satisfy requirements,
conditions or guidelines contained in any order, directive, opinion, ruling or regulation of a federal or state agency or contained
in federal or state law; and

 

WHEREAS, acting pursuant
to the power and authority granted to it under Section 11.01(b) of the Partnership Agreement, the General Partner has determined
that this Amendment does not require the approval of any Partner.

 

NOW, THEREFORE, it
is hereby agreed as follows:

 

A G R E E M E N T

 

NOW, THEREFORE, the
Partnership Agreement is hereby amended as follows:

 

1. Article
I. The following definitions are added to Article I:

 

“Partnership
Level Taxes” means any federal, state, or local taxes, additions to tax, penalties, and interest payable by the Partnership
as a result of a Tax Audit under the Partnership Tax Audit Rules.

 

“Covered Audit
Adjustment” means an adjustment to any partnership-related item (within the meaning of Section 6241(2)(B) of the Code)
to the extent such adjustment results in an “imputed underpayment” as described in Section 6225(b) of the Code or any
analogous provision of state or local law.

 

“Election
Out” means the election provided by Section 6221(b) of the Code to have Subchapter C of Chapter 63 of Subtitle F of the
Code not apply or any analogous election under state or local law.

 

     

     

    

 

“Excess Tax
Amount” has the meaning set forth in Section 5.02(d)(iii).

 

“Imputed Underpayment
Modification” means any modification under Section 6225(c) of the Code (or any analogous provision of state or local
law) to the extent that such modification is available and would reduce any Partnership Level Taxes attributable to a Covered Audit
Adjustment.

 

“IRS”
means the U.S. Internal Revenue Service.

 

“Partnership
Representative” has the meaning set forth in Section 10.05(b)(i).

 

“Partnership
Tax Audit Rules” means Sections 6221 through 6241 of the Code, as amended, together with any final or temporary Treasury
Regulations, Revenue Rulings, and case law interpreting Sections 6221 through 6241 of the Code, as amended (and any analogous provision
of state or local tax law), as in effect following the enactment of the Bipartisan Budget Act of 2015.

 

“Push-Out
Election” means the election to apply the alternative method provided by Section 6226 of the Code (or any analogous provision
of state or local tax law).

 

“Tax Audit”
or “Tax Audits” has the meaning set forth in Section 10.05(b)(i).

 

“Tax Contribution
Obligation” has the meaning set forth in Section 5.02(d)(iii).

 

“Tax Offset”
has the meaning set forth in Section 5.02(d)(ii).

 

2. Article I.
The definition of “Partner” is hereby deleted in its entirety and replaced in full as follows:

 

“Partner”
means any General Partner or Limited Partner, and “Partners” means the General Partner and the Limited Partners
collectively; provided, however, that for the purposes of Sections 5.02(d) and 10.05, the term “Partner”
means any current Partner and any former Partner, provided that a former Partner shall be considered a Partner only as the context
requires in order to effectuate the provisions of Section 10.05 such that each Partner and former Partner bears the economic burden
associated with any Covered Audit Adjustment and/or Partnership Level Taxes that relate to a taxable year (or portion thereof)
in which such Partner or former Partner, as applicable, was a Partner or was treated as holding an interest in the Partnership.

 

3. Section
5.01. The following subsection is added to the end of Section 5.01:

 

(i)       Special
Tax Allocations. Items of income, gain, loss, expense or credit resulting from a Covered Audit Adjustment shall be allocated
to the Partners in accordance with the applicable provisions of the Partnership Audit Tax Rules.

 

4. Section 5.02(d).
Section 5.02(d) is hereby deleted in its entirety and replaced in full as follows:

 

(d)       Withholding
and Other Tax Payments by the Partnership.

 

     

     

    

 

(i)       Withholding.
Notwithstanding any other provision of this Agreement, each of the General Partner, the Partnership and its Subsidiaries may withhold
from distributions, allocations or portions thereof if it is required to do so by the Code or any other applicable federal, state
or local rule, regulation or law, including, without limitation, pursuant to Sections 1441, 1442, 1445 and 1446 of the Code,
and each Partner hereby authorizes the General Partner, the Partnership and its Subsidiaries to withhold or pay on behalf of or
with respect to such Partner any amount of federal, state, provincial, local or foreign taxes that the General Partner determines,
in good faith, that the Partnership or any of its Subsidiaries is required to withhold or pay with respect to any amount distributable
or allocable to such Partner pursuant to this Agreement. To the extent that any tax is paid by the Partnership or any of its Subsidiaries
and the General Partner determines, in good faith, that such tax (including any Partnership Level Tax) relates to one or more specific
Partners, such tax shall be treated as an amount of taxes paid with respect to such Partner pursuant to this Section 10.05(d) and
Section 5.02(d). Any determinations made by the General Partner pursuant to this Section 5.02(d) shall be binding upon the Partners.
Notwithstanding any provision to the contrary in this Section 5.02(d), the payment by the Partnership of Partnership Level
Taxes shall, consistent with the Partnership Tax Audit Rules, be treated as the payment of a Partnership obligation and shall be
treated as paid with respect to a Partner to the extent the deduction with respect to such payment is allocated to such Partner
pursuant to Section 5.01(i), and such payment shall not be treated as a withholding from distributions, allocations, or portions
thereof with respect to a Partner.

 

(ii)       Tax
Offset. For all purposes under this Agreement, any amounts withheld or paid with respect to a Partner pursuant to this Section
5.02(d) (other than the payment of Partnership Level Taxes) may be offset against any distributions to which such Partner is entitled
concurrently with such withholding or payment (a “Tax Offset”); provided that the amount of any distribution
subject to a Tax Offset shall be treated as having been distributed to such Partner pursuant to Section 5.02(a) or 5.02(b) at the
time such Tax Offset is made.

 

(iii)       Tax
Contribution Obligation. To the extent that (I) the amount of such Tax Offset exceeds the distributions to which such
Partner is entitled concurrently with such withholding or payment (an “Excess Tax Amount”) or (II) there is
a payment of Partnership Level Taxes relating to a Partner, the amount of such (A) Excess Tax Amount or (B) Partnership Level
Taxes, as applicable, shall, in the General Partner’s sole discretion, (a) give rise to an interest-bearing obligation of
such Partner to make a capital contribution to the Partnership (a “Tax Contribution Obligation”) and/or (b)
be offset against future distributions to which such Partner is entitled until such Excess Tax Amount or Partnership Level Taxes,
as applicable and, in each case, with interest accrued thereon, is reduced to zero. Any such Tax Contribution Obligation shall
bear interest at the lesser of (i) 300 basis points above the base rate on corporate loans at large United States money center
commercial banks, as published from time to time in The Wall Street Journal, Eastern Addition, or (ii) the maximum
lawful rate of interest on such obligation, such interest to accrue from the date such Tax Contribution Obligation arises.

 

(1)       If
requested by the General Partner, a Partner shall promptly contribute the amount of its Tax Contribution Obligation to the Partnership.
To the extent a Partner does not contribute the amount of its Tax Contribution Obligation to the Partnership within 15 days after
demand for payment thereof, the Partnership shall offset such amount (plus interest accruing at the applicable underpayment rate
for such period, as specified in Section 6621 of the Code) against distributions to which such Partner would otherwise be subsequently
entitled until the Partner’s Tax Contribution Obligation (including any interest accrued thereon) has been satisfied in full.
For the avoidance of doubt, the interest on any Tax Contribution Obligation paid by a Partner to the Partnership (whether directly
or by offset) under this Section 5.02(d) shall be taxable income to the Partnership.

 

     

     

    

 

(2)       To
the extent, and at the time(s), that a Partner makes a payment to satisfy such Partner’s Tax Contribution Obligation (including
any accrued but unpaid interest thereon), such payment shall be applied first to any accrued but unpaid interest owed by such Partner,
and any remaining portion shall satisfy such Partner’s Tax Contribution Obligation and such remaining portion shall increase
such Partner’s Capital Account but shall not reduce the amount that a Partner is otherwise obligated to contribute to the
Partnership. Amounts recovered by the Partnership through any offset against distributions pursuant to this Section 5.02(d) shall
be applied first to any accrued but unpaid interest owed by such Partner, and thereafter offset the amount of such Partner’s
Tax Contribution Obligation, and such Partner’s Capital Account shall not be reduced to the extent such offset was against
the amount of such Partner’s Tax Contribution Obligation.

 

(iv)       Security
Interest. Each Partner hereby unconditionally and irrevocably grants to the Partnership a security interest in such Partner’s
Partnership Units to secure such Partner’s Tax Contribution Obligation. Each Partner shall take such actions as the Partnership
may request in order to perfect or enforce the security interest created hereunder.

 

(v)       Indemnification
by Partner. Each Partner hereby agrees to indemnify and hold harmless the Partnership, the other Partners, the Partnership
Representative and the General Partner from and against any liability (including any liability for Partnership Level Taxes) with
respect to income attributable to or distributions or other payments to such Partner.

 

(vi)       Continued
Obligations of Former Partners. For the avoidance of doubt, any Person who ceases to be a Partner shall be deemed to be a Partner
for purposes of this Section 5.02(d), and the obligations of a Partner pursuant to this Section 5.02(d) shall survive indefinitely
with respect to any taxes withheld or paid by the Partnership that relate to the period during which such Person was actually a
Partner, regardless of whether such taxes are assessed, withheld or otherwise paid during such period.

 

(vii)       Discretion
Regarding Recovery of Taxes. Notwithstanding the foregoing, the General Partner may choose to not recover an amount of Partnership
Level Taxes or other taxes withheld or paid with respect to a Partner under this Section 5.02(d) if the General Partner determines,
in its reasonable discretion, that such an decision would be in the best interests of the Partnership (e.g., where the cost of
recovering the amount of taxes withheld or paid with respect to such Partner is not justified in light of the amount that may be
recovered from such Partner). 

 

     

     

    

 

5. Section 10.05.
Section 10.05 is hereby deleted in its entirety and replaced in full as follows:

 

Section 10.5 Tax Audit
Matters; Tax Elections; Special Basis Adjustments.

 

(a)       Tax
Matters Partner. With respect to periods not governed by Partnership Audit Tax Rules, the
General Partner shall be the Tax Matters Partner of the Partnership. As Tax Matters Partner, the General Partner shall have the
right and obligation to take all actions authorized and required, respectively, by the Code for the Tax Matters Partner. The General
Partner shall have the right to retain professional assistance in respect of any audit of the Partnership by the Service and all
out-of-pocket expenses and fees incurred by the General Partner on behalf of the Partnership as Tax Matters Partner shall constitute
Partnership expenses. In the event the General Partner receives notice of a final Partnership adjustment under Section 6223(a)(2)
of the Code, the General Partner shall either (i) file a court petition for judicial review of such final adjustment within the
period provided under Section 6226(a) of the Code, a copy of which petition shall be mailed to all Limited Partners on the date
such petition is filed, or (ii) mail a written notice to all Limited Partners, within such period, that describes the General Partner’s
reasons for determining not to file such a petition.

 

(b)       Designation
of Partnership Representative; Scope of Duties and Authority.

 

(i)       For
tax periods for which any of the Partnership Tax Audit Rules are in effect with respect to the Partnership, the “partnership
representative” (within the meaning of Section 6223(a) of the Code) (the “Partnership Representative”)
of the Partnership shall be the General Partner (unless the General Partner is not authorized under the Partnership Tax Audit Rules
to serve as the Partnership Representative, resigns as the Partnership Representative or is found by a court of competent jurisdiction
upon entry of a final judgment to have engaged in fraud, willful misconduct, or gross negligence as the Partnership Representative,
in which case a Person so authorized and selected by a Two Thirds Majority shall be the Partnership Representative). The Partnership
Representative is authorized to and shall represent the Partnership (at
the Partnership’s expense) in connection with all examinations of the Partnership’s
affairs by any federal, state, or local tax authorities, including resulting administrative and judicial proceedings (each
a “Tax Audit” and collectively, “Tax Audits”), and
to expend Partnership funds for professional services and costs associated therewith.

 

(ii)       In
its capacity as such, the Partnership Representative shall have the authority and
discretion to exercise any and all authority of the Partnership Representative under the Code, including, without limitation, (i)
binding the Partnership and its Partners with respect to tax matters, including, but not limited to, by entering into any settlement
offer, agreeing to extend statutes of limitation, and initiating litigation and, (ii) if the IRS, in connection with a Tax
Audit governed by the Partnership Tax Audit Rules, proposes a Covered Audit Adjustment, determining, in its sole discretion, whether,
to the extent that such election is available under the Partnership Tax Audit Rules, to make a Push-Out Election.

 

(iii)       If
the Partnership Representative changes its address, the Partnership Representative shall promptly notify the IRS of such occurrence.
If the Partnership Representative is replaced pursuant to Section 10.05(b)(i), the outgoing Partnership Representative shall take
all actions required by the Partnership Tax Audit Rules to revoke or resign its prior designation as the Partnership Representative.

 

     

     

    

 

(c)       Election
Out.

 

(i)       To
the extent that the Election Out is available to the Partnership under the Partnership Tax Audit Rules, the General Partner may
make the Election Out.

 

(ii)       If
the Partnership Representative makes an Election Out, the Partnership shall, within thirty (30) days of receipt of a written request,
make available to any Partner, at such Partner’s expense, any information such Partner reasonably requests in connection
with any Tax Audit relating to such Partner’s interest in the Partnership. Each Partner shall inform the Partnership of any
Covered Audit Adjustments to Partnership items that result from any Tax Audit of such Partner within thirty (30) days of the close
of such Tax Audit.

 

(d)       Push-Out
Election; Imputed Underpayment Modifications.

 

(i)       If
the Partnership Representative makes a Push-Out Election with respect to a Covered Audit Adjustment, each Partner (including transferees
or successors of any Partner) covenants and agrees that it shall (1) pay any and all resulting taxes, additions to tax, penalties
and interest in a timely fashion and (2) cooperate with the Partnership and the Partnership Representative in good faith. Notwithstanding
the foregoing, if the Partnership is required to pay any tax, addition to tax, penalty, or interest following a Push-Out Election
because any portion of the applicable Covered Audit Adjustment would otherwise be subject to withholding by the Partnership under
Chapters 3 or 4 of Subtitle A of the Code, any such amounts shall be considered Partnership Level Taxes with respect to the applicable
Partners subject to the provisions of Section 5.02(d).

 

(ii)       To
the extent that the Partnership Representative does not make a Push-Out Election with respect to a Covered Audit Adjustment, the
Partnership Representative may make Imputed Underpayment Modifications (taking into account whether the Partnership Representative
has received all requisite information on a timely basis from the Partners), and each Partner shall, as requested by the Partnership
Representative, take such actions as may be necessary or prudent for the Partnership Representative to seek an Imputed Underpayment
Modification (including, for the avoidance of doubt, filing an amended federal income tax return or following an alternative procedure
to filing an amended federal income tax return, as described in Section 6225(c)(2) of the Code, paying any and all resulting federal
income taxes in a timely fashion, providing all necessary information to the Partnership to support the modification of the tax
rate applicable to any Imputed Underpayment Modification pursuant to Section 6225(c)(4) of the Code, and providing an affidavit
to the Partnership Representative that such actions have been taken). If not otherwise sought by the Partnership Representative
and if reasonably requested by a Partner, the Partnership Representative shall use commercially reasonable efforts to provide to
such Partner information allowing such Partner to file an amended federal income tax return or to follow an alternative procedure
to filing an amended federal income tax return, as described in Section 6225(c)(2) of the Code, to the extent that such amended
return or alternative procedure and payment of any related taxes, additions to tax, penalties, and interest would reduce any Partnership
Level Taxes attributable to the Covered Audit Adjustment.

 

(iii)       To
the extent that the Partnership Representative does not make a Push-Out Election with respect to a Covered Audit Adjustment, the
Partnership Representative is authorized, pursuant to Section 4.03, to obtain a loan on behalf of the Partnership to pay any Partnership
Level Taxes.

 

     

     

    

 

(e)       Cooperation.
Each Partner agrees to cooperate with the Partnership Representative and to do or
refrain from doing any or all things reasonably requested by the Partnership Representative in
connection with any Tax Audit. If reasonably requested by the Partnership Representative, each Partner shall deliver to the Partnership
Representative: (i) any certificates, forms, affidavits, or instruments reasonably requested by the Partnership Representative
relating to such Partner’s status under any tax laws, (including, but limited to, evidence of the filing of tax returns and/or
payment of tax and an affirmative statement that such Partner’s tax status does not make the Partnership ineligible for an
Election Out), and (ii) any information reasonably requested by the Partnership Representative in connection with the Partnership
Tax Audit Rules (including, but not limited to, upper-tier shareholder specific information if a Partner is or becomes an S corporation
for federal income tax purposes, upper-tier partner specific information if a Partner is or becomes a partnership for federal income
tax purposes, tax returns, information regarding the character of income as capital gain or qualified dividend income, and information
regarding passive activity losses).

 

(f)       Indemnification.
To the maximum extent permitted by applicable law, the Partnership Representative will not be liable for, and will be indemnified
and held harmless by the Partnership from and against, any and all loss, liability, damage, cost or expense, including reasonable
attorneys’ and accountants’ fees, suffered or incurred in defense of any demands, claims or lawsuits against the Partnership
Representative in or as a result of or relating to his or its capacity, actions or omissions as the Partnership Representative,
or concerning the Partnership or any activities undertaken on behalf of the Partnership; provided that the acts or omissions
of the Partnership Representative are not found by a court of competent jurisdiction upon entry of a final judgment to have been
the result of fraud or willful misconduct or, with respect to criminal matters, that the Partnership Representative had reason
to believe that his conduct was unlawful.

 

(g)       Miscellaneous.

 

(i)       Notwithstanding
anything herein to the contrary, nothing in this Agreement shall obligate the Partnership Representative to provide notice to the
Partners regarding any Tax Audit other than as required by the Partnership Tax Audit Rules. The
Partners shall have no right to participate in any Tax Audit, unless the Partnership Representative gives its written consent otherwise.

 

(ii)       Each
Partner agrees to promptly update and supplement its contact information as necessary to keep such information up-to-date, even
if such Partner’s interest in the Partnership is transferred or terminated.

 

(iii)       The
provisions of this Section 10.05, including the Partnership Representative’s authority under this Section 10.05, shall survive
the termination, dissolution, liquidation and winding up of the Partnership and the termination or transfer of any Partner’s
interest in the Partnership and shall remain binding on each Partner for the period of time necessary to resolve any Tax Audit
involving or related to the Partnership.

 

     

     

    

 

(h)       Compensation.
Neither the Tax Matters Partner nor the Partnership Representative shall receive any compensation for its services. All third-party
costs and expenses incurred by the Tax Matters Partner or the Partnership Representative in performing its duties as such (including
legal and accounting fees and expenses) shall be borne by the Partnership. Nothing herein shall be construed to restrict the Partnership
from engaging an accounting firm to assist the Tax Matters Partner or Partnership Representative in discharging its duties hereunder,
so long as the compensation paid by the Partnership for such services is reasonable.

 

(i)       Tax
Elections. All elections required or permitted to be made by the Partnership under the Code or any applicable state or local
tax law shall be made by the General Partner in its sole and absolute discretion.

 

(j)       Section
754 Election. In the event of a transfer of all or any part of the Partnership Interest of any Partner, the Partnership, at
the option of the General Partner, may elect pursuant to Section 754 of the Code to adjust the basis of the Properties. Notwithstanding
anything contained in Article V of this Agreement, any adjustments made pursuant to Section 754 shall affect only the successor
in interest to the transferring Partner and in no event shall be taken into account in establishing, maintaining or computing Capital
Accounts for the other Partners for any purpose under this Agreement. Each Partner will furnish the Partnership with all information
necessary to give effect to such election.

 

(k)       Safe
Harbor Election. The Partners, intending to be legally bound, hereby authorize the Partnership to make an election (the “Safe
Harbor Election”) to have the “liquidation value” safe harbor provided in Proposed Treasury Regulation Section
1.83-3(1) and the Proposed Revenue Procedure set forth in Internal Revenue Service Notice 2005-43, as such safe harbor may be modified
when such proposed guidance is issued in final form or as amended by subsequently issued guidance (the “Safe Harbor”),
apply to any interest in the Partnership transferred to a service provider while the Safe Harbor Election remains effective, to
the extent such interest meets the Safe Harbor requirements (collectively, such interests are referred to as “Safe Harbor
Interests”). The Tax Matters Partner is authorized and directed to execute and file the Safe Harbor Election on behalf of
the Partnership and the Partners. The Partnership and the Partners (including any person to whom an interest in the Partnership
is transferred in connection with the performance of services) hereby agree to comply with all requirements of the Safe Harbor
(including forfeiture allocations) with respect to all Safe Harbor Interests and to prepare and file all U.S. federal income tax
returns reporting the tax consequences of the issuance and vesting of Safe Harbor Interests consistent with such final Safe Harbor
guidance. The Partnership is also authorized to take such actions as are necessary to achieve, under the Safe Harbor, the effect
that the election and compliance with all requirements of the Safe Harbor referred to above would be intended to achieve under
Proposed Treasury Regulation Section 1.83-3, including amending this Agreement.

 

6. Ratification.
Except as expressly amended hereby, the Partnership Agreement is hereby ratified and confirmed and shall continue in full force
and effect.

 

7. Governing
Law. This Amendment shall be construed in accordance with and governed by the laws of the State of Delaware.

 

[Signature page follows]

 

     

     

    

 

IN WITNESS WHEREOF,
the General Partner has executed and delivered this Amendment in accordance with Article XI of the Partnership Agreement, and as
of the date first above written.

 

 

 

	 	BLUEROCK RESIDENTIAL GROWTH REIT, INC.,
	 	as General Partner	 
	 	 	 
	 	 	 	 
	 	By:  	/s/ Jordan B. Ruddy	 
	 	 	 	 
	 	Name:  	Jordan B. Ruddy	 
	 	 	 	 
	 	Title:  	Chief Operating Officer and President

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