Document:

Exhibit 10.12

 

EMPLOYMENT AGREEMENT

This EMPLOYMENT AGREEMENT (the
"Agreement"), dated as of May 9, 2007, but effective as provided herein, is made and entered into by and among SPECTRX,
INC., a Delaware corporation and its affiliates ("Company") and Mr. Richard L. Fowler (the "Manager").

WITNESSETH:

WHEREAS, the Manager has served
as the Senior Vice President of Engineering for the Company;

WHEREAS, the Company pursuant to
the Asset Purchase Agreement dated May 9, 2007 between the Company and certain other parties (the “Purchase Agreement”),
substantially all of the assets of the SimpleChoice business will be sold to a buyer (the “Asset Sale”);

WHEREAS, pursuant the Purchase
Agreement the execution of a 2 year Non-Competition agreement (the “NonCom Agreement”) with the Manager is required;

WHEREAS, pursuant to the Asset
Sale it is contemplated that Manager will execute this Agreement and the NonCom Agreement upon the Asset Sale;

WHEREAS, the Company considers
it in the best interests of its stockholders to foster the continuous employment of certain key management personnel;

WHEREAS, the Company wishes to
continue the employment of the Manager and the Manger is willing to render services, both on the terms and subject to the conditions
set forth in this Agreement.

NOW, THEREFORE, in consideration
of the promises and of the mutual covenants herein contained, it is agreed as follows:

1.                 
Employment. 

1.1.           
After the Effective Date, the Company hereby agrees to employ the Manager and the Manager
hereby agrees to continue his employment with the Company, upon the terms and conditions herein set forth. It is envisioned that
Manager will perform services for the Company and will remain or become, as a legal matter, an employee of the Company. 

1.2.           
Employment will be for a term commencing on the Effective Date and, subject to earlier expiration
upon the Manager's termination under Section 5, expiring on two (2) years from the Effective Date (the "Initial Term").
This Agreement will automatically renew for a period of two (2) years (the “Renewal Terms”) together with the Initial
Term (hereinafter referred as the “Employment Term”) at the end of the Initial Term unless the Manager is informed
in writing of the termination of this Agreement at least three (3) months before the expiration of the Initial Term.

2.                 
Positions and Duties.

2.1.           
Positions and Duties. During the Employment Term, the Manager will serve in his current
position, or such other position or positions as may be assigned to Manager by the Company’s Chief Executive Officer or President
from time to time. 

2.2.           
Commitment. During the Employment Term, the Manager will be the Company's full-time
employee and, except as may otherwise be approved in advance in writing by the Chief Executive Officer or President of the Company,
and except during vacation periods and reasonable periods of absence due to sickness, personal injury, or other disability, the
Manager will devote substantially all of his full business time and attention to the performance of his duties to the Company;
provided, however, that nothing in this Agreement shall preclude the Manager from devoting reasonable periods required for (i)
participating in professional, educational, philanthropic, public interest, charitable, social, or community activities, or (ii)
serving as a director or member of an advisory committee of any corporation or other entity that is not in competition with the
Company; provided, further, that any such activities set forth in clauses (i) and (ii) above do not materially interfere with the
Manager's regular performance of his duties and responsibilities hereunder. 

3.                 
Place of Performance. In connection with his employment during the Employment
Term, unless otherwise agreed by the Manager, the Manager will be based at the Company's principal offices in Georgia. The Manager
will undertake normal business travel on behalf of the Company. 

4.                 
Compensation and Benefits. 

4.1.           
Compensation. 

(i)                
Base Salary. During the Employment Term, the Company will pay to the Manager an annualized
base salary of $170,000, which base salary may be increased by the Chief Executive Officer of the Company in its sole discretion,
payable at the times and in the manner consistent with the Company’s general policies regarding compensation of managerial
employees. 

(ii)              
Incentive Compensation. If the Company's Chief Executive Officer authorizes any cash
incentive compensation or approves any other management incentive program or arrangement, the Manager will be eligible to participate
in such plan, program, or arrangement under the general terms and conditions applicable to its other managerial employees. Nothing
in this Section 4.1(iv) will guarantee to the Manager any specific amount of incentive compensation or prevent the Chief Executive
Officer of the Company from establishing performance goals and compensation targets applicable only to the Manager. 

4.2.           
Benefits. In addition to the compensation described in Section 4.1, the Company will
make available to the Manager and his eligible dependents, subject to the terms and conditions of the applicable plans, including,
without limitation, the eligibility rules, participation in all Company-sponsored employee benefit plans including all employee
retirement income and welfare benefit policies, plans, programs, or arrangements in which managerial employees of the Company participate,
including any stock option, stock purchase, stock appreciation, savings, pension, supplemental retirement or other retirement income
or welfare benefit, disability, salary continuation, and any other deferred compensation, incentive compensation, group and/or
life, health, medical /hospital or other insurance (whether funded by actual insurance or self-insured by the Company), expense
reimbursement, or other employee benefit policies, plans, programs, or arrangements or any equivalent successor policies, plans,
programs, or arrangements that may now exist or be adopted hereafter by the Company. The Company reserves the right to alter, amend,
or terminate such plans with or without prior notice. The Manager will be granted five (5) weeks of paid vacation annually.

4.3.           
Expenses. The Company will promptly reimburse the Manager for all travel and other
business expenses the Manager incurs in order to perform his duties to the Company under this Agreement in a manner commensurate
with the Manager's position and level of responsibility with the Company and in accordance with the Company's policy regarding
approval and substantiation of expenses. The Manger will travel by first class accommodations for all business travel. The Company
will reimburse the Manager for mobile telecommunications including cell phone and broadband service.

5.                 
Termination. Notwithstanding the Employment Term specified in Section 1.2, the
following provisions hereunder will govern the termination of the Manager's employment: 

5.1.           
Death. In the event of the Manager's death during the Employment Term, the Company
will pay to the Manager's beneficiaries or estate, as appropriate, promptly after the Manager's death (i) the unpaid base salary
to which the Manager is entitled, pursuant to Section 4.1, through the date of the Manager's death and (ii) any accrued, but unused
vacation days, to the extent and in the amounts, if any, provided under the Company's usual policies and arrangements. This Section
5.1 will not limit the entitlement of the Manager's estate or beneficiaries to any death or other benefits then available to the
Manager under any life insurance, stock ownership, stock options, or other benefit plan or policy that is maintained by the Company
for the Manager's benefit. 

5.2.           
Disability. 

(i)    
If the Company determines in good faith that the Manager has incurred a Disability (as defined
below) during the Employment Term, the Company may give the Manager written notice of its intention to terminate the Manager's
employment. In such event, the Manager's employment with the Company will terminate effective on the 30th day after receipt of
such notice by the Manager, provided that within the 30 days after such receipt, the Manager will not have returned to full-time
performance of his duties. The Manager will continue to receive his base salary and benefits until the date of termination. In
the event of the Manager's Disability, the Company will pay the Manager, promptly after the Manager's termination, (a) the unpaid
annual base salary to which he is entitled, pursuant to Section 4.1, through the date of the Manager's termination, and (b) any
accrued, but unused vacation days, to the extent and in the amounts, if any, provided under the Company's usual policies and arrangements.
This Section 5.2 will not limit the entitlement of the Manager, the Manager's estate, or beneficiaries to any disability or other
benefits then available to the Manager under any disability insurance or other benefit plan or policy that is maintained by the
Company for the Manager's benefit. 

(ii)  
For purposes of this Agreement, "Disability" will mean the Manager's incapacity
due to physical or mental illness substantially to perform his duties on a full-time basis for six consecutive months and within
30 days after a notice of termination is thereafter given by the Company the Manager will not have returned to the full-time performance
of the Manager's duties; provided, however, if the Manager disagrees with a determination to terminate him because of Disability,
the question of the Manager's disability will be subject to the certification of a qualified medical doctor agreed to by the Company
and the Manager or, in the event of the Manager's incapacity to designate a doctor, the Manager's legal representative. In the
absence of agreement between the Company and the Manager, each party will nominate a qualified medical doctor and the two doctors
will select a third doctor, who will make the determination as to Disability. In order to facilitate such determination, the Manager
will, as reasonably requested by the Company, (a) make himself available for medical examinations by a doctor in accordance with
this Section 5.2(ii) and (b) grant the Company and any such doctor access to all relevant medical information concerning him, arrange
to furnish copies of medical records to such doctor, and use his best efforts to cause his own doctor to be available to discuss
his health with such doctor. 

5.3.           
For Cause Termination. 

(i)    
The Company may terminate the Manager's employment hereunder for Cause (as defined below).
In the event of the Manager's termination for Cause, the Company will promptly pay to the Manager (or his representative) the base
salary to which he is entitled, pursuant to Section 4.1, through the date the Manager is terminated and the Manager will be entitled
to no other compensation or benefits under this Agreement or otherwise, except as otherwise due to him under applicable law. 

(ii)  
For purposes of this Agreement, the Company will have "Cause" to terminate the Manager's
employment hereunder upon a finding by the Company that (a) the Manager committed an act or acts that were intended to and did
defraud the Company, (b) the Manager engaged in gross negligence or gross misconduct against the Company or another employee, or
in carrying out his duties and responsibilities, or (c) the Manager materially breached any of the express covenants set forth
in this Agreement or in any other agreement to which Manager and the Company is a party, including without limitation, any agreement
with the Company or any written policy, including, without limitation, the Company's non-discrimination and non-harassment policies.
The Company will not have Cause unless and until the Company provides the Manager with written notice that the Company intends
to terminate his employment for Cause. Such written notice will specify the particular act or acts, or failure to act, that is
or are the basis for the decision to so terminate the Manager's employment for Cause. The Employee will be given the opportunity
within 20 days of the receipt of such notice to meet with the Company's Board of Directors to defend such act or acts, or failure
to act and, provided that such cure is possible, the Manager will be given 20 days after such meeting to correct such act or failure
to act. If the Manager fails to correct such act or failure to act within the 20 days following the meeting, if such correction
is possible, the Manager's employment by the Company automatically will be terminated under this Section 5.3 for Cause as of the
receipt of the written notice from the Company or, if later, the date specified in such notice. 

5.4.           
Other Terminations. 

(i)    
Involuntary Termination. The Manager's employment hereunder may be terminated by the
Company for any reason by written notice. The Manager will be treated for purposes of this Agreement as having been involuntarily
terminated by the Company other than for Cause if the Manager terminates his employment with the Company for any of the following
reasons (each, a "Good Reason"): (a) the Company has breached any material provision of this Agreement and within 30
days after notice thereof from the Manager, the Company fails to cure such breach; (b) a successor or assign (whether direct or
indirect, by purchase, Sale, consolidation or otherwise) to all or substantially all of the business and/or assets of the Company
fails to assume liability under the Agreement; (c) a material reduction in the aggregate salary and benefits described in Sections
4.1 and 4.2 (other than stock-based compensation) provided to the Manager, taken as a whole; or (d) the Company changes the Manager's
principal place of employment to outside the metropolitan areas of Atlanta, Georgia 

(ii)  
Voluntary Termination. The Manager may voluntarily terminate the Agreement at any time
by notice to the Company. The Manager's death or Disability (as defined in Section 5.2(ii)) during the term of the Agreement will
constitute a voluntary termination of employment for purposes of eligibility for termination payments and benefits as provided
in Section 5.5. 

5.5.           
Termination Payments and Benefits. 

(i)    
Amount. Upon the Manager's involuntary termination other than for Cause, the Company
will pay or provide to the Manager (1) his base salary and benefits in their entirety until the date of termination, (2) during
the period ending nine (9) months after the date of termination or on the last day of the Employment Term, whichever occurs sooner,
the continuation of his base salary paid in periodic installments consistent with Company policy therefore, and (3) for a period
of nine (9) months after termination of his employment, the continuation of the employee welfare benefits set forth in Section
4.2 except as offset by benefits paid or provided by other sources as set forth in Section 6, or as prohibited by law or as a condition
of maintaining the tax-favored status of any such benefits to the Company or its employees. 

(ii)  
Release. No benefit will be paid or made available under Section 5.5(i) (a) unless
the Manager first executes a release in a form reasonably acceptable to the Company and (b) to the extent such payment or benefit
is subject to the seven-day revocation period prescribed by the Age Discrimination in Employment Act of 1967, as amended, or to
any similar revocation period in effect on the date of termination of Manager's employment, such revocation period has expired
without notice of revocation. 

6.                 
Mitigation and Offset. The Manager is under no obligation to mitigate damages
or the amount of any payment provided for hereunder by seeking other employment or otherwise; provided, however, that the Manager's
coverage under the Company's welfare benefit plans will be reduced to the extent that the Manager becomes covered under any comparable
employee benefit plan made available by another employer and covering the same type of benefits. The Manager will report to the
Company any such benefits actually received by him. 

7.                 
Post-termination Assistance. The Manager agrees that after his employment with
the Company has terminated he will provide, upon reasonable notice, such information and assistance to the Company as may reasonably
be requested by the Company in connection with any litigation in which it or any of its affiliates is or may become a party; provided,
however, that the Company agrees to reimburse the Manager for any related out-of-pocket expenses, including travel expenses. 

8.                 
Survival. The expiration or termination of the Employment Term will not impair
the rights or obligations of any party hereto that accrue hereunder prior to such expiration or termination, except to the extent
specifically stated herein. In addition to the foregoing, the Company's obligations under Section 5 and the Manager's obligations
under Other Agreements (as this term is defined in Section 9.6), will survive the expiration or termination of Manager's employment.

9.                 
Miscellaneous Provisions. 

9.1.           
Binding on Successors. This Agreement will be binding upon and inure to the benefit
of the Company, the Manager and each of their respective successors, assigns, personal and legal representatives, executors, administrators,
heirs, distributees, devisees, and legatees, as applicable. 

9.2.           
Governing Law. This Agreement will be governed, construed, interpreted and enforced
in accordance with the substantive laws of the State of Georgia, without regard to conflicts of law principles. 

9.3.           
Severability. Any provision of this Agreement that is deemed invalid, illegal or unenforceable
in any jurisdiction will, as to that jurisdiction be ineffective to the extent of such invalidity, illegality or unenforceability,
without affecting in any way the remaining provisions hereof in such jurisdiction or rendering that or any other provisions of
this Agreement invalid, illegal, or unenforceable in any other jurisdiction. If any covenant should be deemed invalid, illegal
or unenforceable because its scope is considered excessive, such covenant will be modified so that the scope of the covenant is
reduced only to the minimum extent necessary to render the modified covenant valid, legal and enforceable. 

9.4.           
Notices. For all purposes of this Agreement, all communications, including without
limitation notices, consents, requests or approvals, required or permitted to be given hereunder will be in writing and will be
deemed to have been duly given when hand delivered or dispatched by electronic facsimile transmission (with receipt thereof confirmed),
or five business days after having been mailed by United States registered or certified mail, return receipt requested, postage
prepaid, or three business days after having been sent by a nationally recognized overnight courier service such as Federal Express
or UPS, addressed to the attention of: Chief Executive Officer at 4955 Avalon Ridge Parkway, Norcross, Georgia 30071 and to the
Manager at 2561 Floral Valley Dr., Dacula, GA 30019, or to such other address as any party may have furnished to the other in writing
and in accordance herewith, except that notices of changes of address will be effective only upon receipt. 

9.5.           
Counterparts. This Agreement may be executed in several counterparts. each of which
will be deemed to be an original. but all of which together will constitute one and the same Agreement. 

9.6.           
Entire Agreement. The terms of this Agreement are intended by the parties to be the
final expression of their agreement with respect to the Manager's employment by the Company, except the (1) the SpectRx Trade Secret,
Confidential Information, Assignment of Inventions, and Nonsolicitation Agreement dated February 26, 1996 and (2) the SpectRx Inc.
Non-Compete Agreement, to be dated May 9, 2007, which continue in full force and effect, and may not be contradicted by evidence
of any prior or contemporaneous agreement (the agreements included in clause (1) and (2), the “Other Agreements”).
The parties further intend that this Agreement will constitute the complete and exclusive statement of its terms and that no extrinsic
evidence whatsoever may be introduced in any judicial, administrative or other legal proceeding to vary the terms of this Agreement.

9.7.           
Amendments; Waivers. This Agreement may not be modified, amended, or terminated except
by an instrument in writing, approved by the Company and signed by the Manager. Failure on the part of either party to complain
of any action or omission, breach or default on the part of the other party, no matter how long the same may continue, will never
be deemed to be a waiver of any rights or remedies hereunder, at law or in equity. The Manager or the Company may waive compliance
by the other party with any provision of this Agreement that such other party was or is obligated to comply with or perform only
through an executed writing; provided, however, that such waiver will not operate as a waiver of, or estoppel with respect to,
any other or subsequent failure. 

9.8.           
No Inconsistent Actions. The parties will not voluntarily undertake or fail to undertake
any action or course of action that is inconsistent with the provisions or essential intent of this Agreement. Furthermore, it
is the intent of the parties hereto to act in a fair and reasonable manner with respect to the interpretation and application of
the provisions of this Agreement. 

9.9.           
Headings and Section References. The headings used in this Agreement are intended for
convenience or reference only and will not in any manner amplify, limit, modify or otherwise be used in the construction or interpretation
of any provision of this Agreement. All section references are to sections of this Agreement, unless otherwise noted. 

10.             
Effectiveness and Prior Agreement. This Agreement will become effective upon
the closing of the Asset Sale (the “Effective Date”). Notwithstanding any other provisions fo this Agreement, if the
Asset Sale is not consummated, this agreement will have no further force or effect. 

IN WITNESS
WHEREOF, the parties have executed this Agreement as of the date and year first above written, but effective as provided in Section
10.

 

/s/ Richard L. Fowler

Manager/Date

SPECTRX, INC.

/s/ Mark Samuels

Mark Samuels

CEOExhibit 4.1

LTIP UNIT VESTING AGREEMENT

 

Under the Bluerock Residential Growth
REIT, Inc.

2014 Equity Incentive Plan for Entities

 

	Name of Grantee:	BRG Manager, LLC
	No. of LTIP Units:	[174,784]
	Grant Date:	_____ __, 2014
	Final Acceptance Date:	_____ __, 2014

 

Pursuant to the Bluerock Residential Growth
REIT, Inc. 2014 Equity Incentive Plan for Entities (the “Plan”) and the Second Amended and Restated Agreement
of Limited Partnership, dated ________ __, 2014 (the “Partnership Agreement”), of Bluerock Residential Holdings,
L.P., a Delaware limited partnership (the “Partnership”), Bluerock Residential Growth REIT, Inc., a Maryland
corporation and the general partner of the Partnership (the “Company”), and for the provision of services to
or for the benefit of the Partnership in a partner capacity or in anticipation of being a partner, pursuant to that certain Management
Agreement among the Company, the Partnership and the Grantee dated as of ________ __, 2014 (the “Management Agreement”),
hereby grants to the Grantee named above an Other Equity-Based Award (as defined in the Plan) (an “Award”) in
the form of, and by causing the Partnership to issue to the Grantee named above, a number of LTIP Units (as defined in the Partnership
Agreement) specified above having the rights, voting powers, restrictions, limitations as to distributions, qualifications and
terms and conditions of redemption and conversion set forth herein and in the Partnership Agreement. Upon acceptance of this LTIP
Unit Vesting Agreement (this “Agreement”), the Grantee shall receive, effective as of the Grant Date, the number
of LTIP Units specified above, subject to the restrictions and conditions set forth herein and in the Partnership Agreement.

 

1.           Acceptance
of Agreement. The Grantee shall have no rights with respect to this Agreement unless it has accepted this Agreement prior
to the close of business on the Final Acceptance Date specified above by (i) signing and delivering to the Partnership a copy of
this Agreement and (ii) unless the Grantee is already a Limited Partner (as defined in the Partnership Agreement), signing, as
a Limited Partner, and delivering to the Partnership a counterpart signature page to the Partnership Agreement (attached hereto
as Annex A). Upon acceptance of this Agreement by the Grantee, the Partnership Agreement shall be amended to reflect the
issuance to the Grantee of the LTIP Units so accepted, effective as of the Grant Date. Thereupon, the Grantee shall have all the
rights of a Limited Partner of the Partnership with respect to the number of LTIP Units specified above, as set forth in the Partnership
Agreement, subject, however, to the restrictions and conditions specified in Section 2 below.

 

    	 

    	 

    

  

2.           Restrictions
and Conditions.

 

(a)          The
records of the Partnership evidencing the LTIP Units granted herein shall bear an appropriate legend, as determined by the Partnership
in its sole discretion, to the effect that such LTIP Units are subject to restrictions as set forth herein and in the Partnership
Agreement.

 

(b)          LTIP
Units granted herein may not be sold, transferred, pledged, exchanged, hypothecated or otherwise disposed of by the Grantee prior
to vesting.

 

(c)          Subject
to the provisions of Section 4, any LTIP Units subject to this Award that have not become vested on, before or contemporaneous
with the effective date of termination of the Management Agreement shall be forfeited as of such effective termination date.

 

3.           Vesting
of LTIP Units. The restrictions and conditions in Section 2 of this Agreement shall lapse with respect to the number
of LTIP Units specified below on the Vesting Dates specified below, so long as the Management Agreement remains effective from
the Grant Date until such Vesting Date or Dates.

 

	Number of LTIP	 	 
	Units Vested	 	Vesting Dates
	 	 	 
	[58,261.34]	 	April 30, 2015
	[58,261.33]	 	April 30, 2016
	[58,261.33]	 	April 30, 2017

 

Subsequent to such Vesting Date or Dates,
the LTIP Units on which all restrictions and conditions have lapsed shall no longer be deemed restricted.

 

4.           Acceleration
of Vesting in Special Circumstances. Notwithstanding Section 2 above, all restrictions on all LTIP Units subject
to this Award shall be deemed waived by the Committee (as defined in the Plan) and all LTIP Units granted hereby shall automatically
become fully vested on the date specified below:

 

(a)          the
effective termination date of the Management Agreement upon any termination of the Management Agreement resulting in the Termination
Fee (as defined in the Management Agreement) becoming payable to the Grantee, or resulting in an election regarding the acquisition
of the Grantee by the Company pursuant to Section 10(f)(ii) of the Management Agreement; or

 

(b)          a
Control Change Date (as defined in the Plan).

 

    	2

    	 

    

  

5.           Merger-Related
Action. In contemplation of and subject to the consummation of a consolidation or merger or sale of all or substantially
all of the assets of the Company in which outstanding common shares are exchanged for securities, cash, or other property of an
unrelated corporation or business entity or in the event of a liquidation of the Company (in each case, a “Transaction”),
the Board of Directors of the Company, or the board of trustees or directors of any corporation assuming the obligations of the
Company (the “Acquiror”), may, in its discretion, take any one or more of the following actions, as to the outstanding
LTIP Units subject to this Award: (i) provide that such LTIP Units shall be assumed or equivalent awards shall be substituted,
by the acquiring or succeeding entity (or a creditworthy affiliate thereof), and/or (ii) upon prior written notice to the LTIP
Unitholders (as defined in the Partnership Agreement) of not less than 30 days, provide that such LTIP Units shall terminate immediately
prior to the consummation of the Transaction. The right to take such actions (each, a “Merger-Related Action”)
shall be subject to the following limitations and qualifications:

 

(a)          if
all LTIP Units awarded to the Grantee hereunder are eligible, as of the time of the Merger-Related Action, for conversion into
Common Units (as defined and in accordance with the Partnership Agreement) and the Grantee is afforded the opportunity to effect
such conversion and receive, (A) in consideration for the Common Units into which the Grantee’s LTIP Units shall have been
converted, the same kind and amount of consideration as other holders of Common Units in connection with the Transaction, or (B)
the kind and amount of consideration payable to holders of the number of common shares into which such Common Units could be exchanged
(including the right to make elections as to the type of consideration), then Merger-Related Action of the kind specified in (i)
or (ii) of the first paragraph of Section 5 above shall be permitted and available to the Company and the Acquiror;

 

(b)          if
some or all of the LTIP Units awarded to the Grantee hereunder are not, as of the time of the Merger-Related Action, so eligible
for conversion into Common Units (in accordance with the Partnership Agreement), or if the Grantee is not afforded the opportunity
to effect a conversion and receive the consideration set forth in Sections 5(a)(A) or 5(a)(B) above with respect
to LTIP Units eligible for conversion, and the acquiring or succeeding entity is itself, or has a subsidiary which is organized
as a partnership or limited liability company (consisting of a so-called “UPREIT” or other structure substantially
similar in purpose or effect to that of the Company and the Partnership), then Merger-Related Action of the kind specified in clause
(i) of this Section 5 above must be taken by the Acquiror with respect to all LTIP Units subject to this Award which are not so
convertible at the time, whereby all such LTIP Units covered by this Award shall be assumed by the acquiring or succeeding entity,
or equivalent awards shall be substituted by the acquiring or succeeding entity, and the acquiring or succeeding entity shall preserve
with respect to the assumed LTIP Units or any securities to be substituted for such LTIP Units, as far as reasonably possible under
the circumstances, the distribution, special allocation, conversion and other rights set forth in the Partnership Agreement for
the benefit of the LTIP Unitholders; and

 

    	3

    	 

    

  

(c)          if
some or all of the LTIP Units awarded to the Grantee hereunder are not, as of the time of the Merger-Related Action, so eligible
for conversion into Common Units (in accordance with the Partnership Agreement), or if the Grantee is not afforded the opportunity
to effect a conversion and receive the consideration set forth in Sections 5(a)(A) or 5(a)(B) above with respect
to LTIP Units eligible for conversion, and after exercise of reasonable commercial efforts the Company or the Acquiror is unable
to equitably treat the LTIP Units in accordance with Section 5(b), then Merger-Related Action of the kind specified in clause
(ii) of this Section 5 above must be taken by the Company or the Acquiror, in which case such action shall be subject to a provision
that the settlement of the terminated award of LTIP Units which are not convertible into Common Units, or for which the opportunity
to convert and receive the consideration set forth in Section 5(a)(A) or 5(a)(B) was not afforded, requires a payment
of the same kind and amount of consideration payable in connection with the Transaction to a holder of the number of Common Units
into which the LTIP Units to be terminated could be converted or, if greater, the consideration payable to holders of the number
of common shares into which such Common Units could be exchanged (including the right to make elections as to the type of consideration)
if the Transaction were of a nature that permitted a revaluation of the Grantee’s capital account balance under the terms
of the Partnership Agreement, as determined by the Committee in good faith in accordance with the Plan.

 

6.           Distributions.
Distributions on the LTIP Units shall be paid currently to the Grantee in accordance with the terms of the Partnership Agreement.
The right to distributions set forth in this Section 6 shall be deemed a Dividend Equivalent Right for purposes of the Plan.

 

7.           Incorporation
of Plan. Notwithstanding anything herein to the contrary, this Agreement shall be subject to and governed by all the terms
and conditions of the Plan. Capitalized terms used in this Agreement shall have the meaning specified in the Plan, unless a different
meaning is specified herein.

 

8.           Covenants.
The Grantee hereby covenants as follows:

 

(a)          So
long as the Grantee holds any LTIP Units, the Grantee shall disclose to the Partnership in writing such information as may be reasonably
requested with respect to ownership of LTIP Units as the Partnership may deem reasonably necessary to ascertain and to establish
compliance with provisions of the Code applicable to the Partnership or to comply with requirements of any other appropriate taxing
authority.

 

(b)          The
Grantee hereby agrees to make an election under Section 83(b) of the Code with respect to the LTIP Units awarded hereunder, and
has delivered with this Agreement a completed, executed copy of the election form attached hereto as Annex B. The Grantee
agrees to file the election (or to permit the Partnership to file such election on the Grantee’s behalf) within thirty (30)
days after the Grant Date with the IRS Service Center at which such Grantee files its federal income tax returns, and to file a
copy of such election with the Grantee’s U.S. federal income tax return for the taxable year in which the LTIP Units are
awarded to the Grantee.

 

(c)          The
Grantee hereby agrees that it does not have the current intention to dispose of the LTIP Units subject to this Award within two
years of receipt of such LTIP Units; provided, that, for purposes of this Section 8(c), a disposition shall not include
the pledge of the LTIP Units as collateral. The Partnership and the Grantee hereby agree to treat the Grantee as the owner of the
LTIP Units from the Grant Date. The Grantee hereby agrees to take into account the distributive share of Partnership income, gain,
loss, deduction, and credit associated with the LTIP Units in computing the Grantee’s income tax liability for the entire
period during which the Grantee has the LTIP Units.

 

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(d)          The
Grantee hereby recognizes that the IRS has proposed regulations under Sections 83 and 704 of the Code that may affect the proper
treatment of the LTIP Units for federal tax purposes. In the event that those proposed regulations are finalized, the Grantee hereby
agrees to cooperate with the Partnership in amending this Agreement and the Partnership Agreement, and to take such other action
as may be required, to conform to such regulations.

 

(e)          The
Grantee hereby recognizes that the U.S. Congress is considering legislation that could change the federal tax consequences of owning
and disposing of LTIP Units.

 

9.           Transferability.
This Agreement is personal to the Grantee, is non-assignable and is not transferable in any manner, by operation of law or otherwise,
other than by will or the laws of descent and distribution, without the prior written consent of the Company.

 

10.         Amendment.
The Grantee acknowledges that the Plan may be amended or terminated in accordance with Article XVI thereof and that this
Agreement may be amended or canceled by the Committee, on behalf of the Partnership, for the purpose of satisfying changes in law
or for any other lawful purpose, provided that no such action shall adversely affect the Grantee’s rights under this Agreement
without the Grantee’s written consent. The provisions of Section 5 of this Agreement applicable to the termination
of the LTIP Units covered by this Award in connection with a Transaction (as defined in Section 5 of this Agreement) shall
apply, mutatis mutandi to amendments, discontinuance or cancellation pursuant to this Section 10 or the Plan.

 

11.         Notices.
Notices hereunder shall be mailed or delivered to the Partnership at its principal place of business and shall be mailed or
delivered to the Grantee at the address on file with the Partnership or, in either case, at such other address as one party may
subsequently furnish to the other party in writing.

 

12.         Governing
Law. This Agreement shall be governed by, and construed in accordance with, the laws of the State of Delaware, applied
without regard to conflict of law principles. The parties agree that any action or proceeding arising directly, indirectly or otherwise
in connection with, out of , related to or from this Agreement, any breach hereof or any action covered hereby, shall be resolved
within the State of Delaware and the parties hereto consent and submit to the jurisdiction of the federal and state courts located
within the District of Delaware. The parties hereto further agree that any such action or proceeding brought by either party to
enforce any right, assert any claim, obtain any relief whatsoever in connection with this Agreement shall be brought by such party
exclusively in federal or state courts located within the District of Delaware.

 

[Remainder of page left blank intentionally]

 

    	5

    	 

    

  

The foregoing LTIP Unit Vesting Agreement
is hereby agreed to by the Company, the Partnership and the Grantee on the date shown below.

 

	Date:	 	 	Bluerock Residential Growth REIT, Inc.
	 	 	 	a Maryland corporation
	 	 	 	 	 
	 	 	 	By:	 
	 	 	 	Name:	 
	 	 	 	Title:	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	Bluerock Residential Holdings, L.P.
	 	 	 	a Delaware limited partnership
	 	 	 	 	 
	 	 	 	By:  Bluerock Residential Growth REIT, Inc.,

        general partner
	 	 	 	 	 
	 	 	 	By:	 
	 	 	 	Name:	 
	 	 	 	Title:	 
	 	 	 	 	 
	 	 	 	Grantee
	 	 	 	 
	 	 	 	BRG Manager, LLC
	 	 	 	a Delaware limited liability company
	 	 	 	 	 
	 	 	 	By:	 
	 	 	 	Name:	 
	 	 	 	Title:	 
	 	 	 	 	 
	 	 	 	Grantee’s address:
	 	 	 	 
	 	 	 	c/o Bluerock Real Estate, L.L.C.
	 	 	 	712 Fifth Avenue, 9th Floor
	 	 	 	New York, NY 10019
	 	 	 	Attn:  R. Ramin Kamfar & Michael L. Konig

 

    	 

    	 

    

  

ANNEX A

 

FORM OF LIMITED PARTNER SIGNATURE PAGE

 

The Grantee desiring to become one of the
within named Limited Partners of Bluerock Residential Holdings, L.P. (the “Partnership”), hereby becomes a party to
the Agreement of Limited Partnership (the “Partnership Agreement”) of the Partnership by and among Bluerock Residential
Growth REIT, Inc., as general partner (the “General Partner”), and the Limited Partners, effective as of the Grant
Date (as defined in the LTIP Unit Vesting Agreement, dated _________ __, 2014, among the Grantee, the Partnership, and the General
Partner). The Grantee agrees to be bound by the Partnership Agreement. The Grantee also agrees that this signature page may be
attached to, and hereby authorizes the General Partner to attach this signature page to, any counterpart of the Partnership Agreement.

 

	Date:	 	 	BRG Manager, LLC
	 	 	 	a Delaware limited liability company
	 	 	 	 
	 	 	 	By:	 
	 	 	 	Name:	 
	 	 	 	Title:	 
	 	 	 	 
	 	 	 	Limited Partner’s name and address:
	 	 	 	 
	 	 	 	c/o Bluerock Real Estate, L.L.C.
	 	 	 	712 Fifth Avenue, 9th Floor
	 	 	 	New York, NY 10019
	 	 	 	Attn: R. Ramin Kamfar & Michael L. Konig

 

    	 

    	 

    

  

ANNEX B

 

ELECTION TO INCLUDE IN GROSS INCOME IN
YEAR OF

TRANSFER OF PROPERTY PURSUANT TO SECTION
83(b)

OF THE INTERNAL REVENUE CODE

 

The undersigned hereby makes an election
pursuant to Section 83(b) of the Internal Revenue Code with respect to the property described below and supplies the following
information in accordance with the regulations promulgated thereunder:

 

		1.	The name, address and taxpayer identification number
of the undersigned are:

Name: BRG Manager, LLC (the “Taxpayer”)

 

	 	Address:	 	c/o Bluerock Real Estate, L.L.C.
	 	 	 	712 Fifth Avenue, 9th Floor
	 	 	 	New York, NY 10019
	 	 	 	Attn: R. Ramin Kamfar & Michael L. Konig

 

Taxpayer Identification Number: 46-4538477

 

		2.	Description of property with respect to which the election
is being made:

 

The election is being made with respect to [174,784]
LTIP Units in Bluerock Residential Holdings, L.P. (the “Partnership”).

 

3.           The
date on which the LTIP Units were transferred is _______ __, 2014. The taxable year to which this election relates is calendar
year 2014.

 

		4.	Nature of restrictions to which the LTIP Units are subject:

 

		(a)	The LTIP Units are subject to a substantial risk of forfeiture
and are nontransferable on the date of transfer.

		 	 

		(b)	The Taxpayer’s LTIP Units vest and become transferable
based on the Taxpayer’s continued service pursuant to the Management Agreement dated _______ __, 2014, by and among the
Taxpayer, the Partnership and Bluerock Residential Growth REIT, Inc. (the “Management Agreement”).

 

		5.	The fair market value at the time of transfer (determined without regard to any restrictions other than restrictions which
by their terms will never lapse) of the LTIP Units with respect to which this election is being made was $0 per LTIP Unit.

 

    	 

    	 

    

  

		6.	The amount paid by the Taxpayer for the LTIP Units was
$0 per LTIP Unit.

 

		7.	A copy of this statement has been furnished to the Partnership
and to its general partner, Bluerock Residential Growth REIT, Inc.

 

	Date:	 	 	BRG Manager, LLC
	 	 	 	a Delaware limited liability company
	 	 	 	 
	 	 	 	By:	 
	 	 	 	Name:	 
	 	 	 	Title:	 

 

    	 

    	 

    

  

Schedule to Section 83(b) Election-Vesting
Provisions of LTIP Units

 

The LTIP Units are subject to time-based
vesting with 33.34% vesting on April __ 2015, 33.33% vesting on April __ 2016 and 33.33% vesting on April __ 2017, subject to acceleration
in the event of certain extraordinary transactions or termination of the Management Agreement in certain circumstances. Unvested
LTIP Units are subject to forfeiture in the event of the termination of the Management Agreement in certain circumstances.

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