Document:

Exhibit 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:	179,562
	Grant Date:	April 2, 2014
	Final Acceptance Date:     	April 2, 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 April 2, 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 April 2, 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
	 	 	 
	59,854	 	April 30, 2015
	59,854	 	April 30, 2016
	59,854	 	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).

 

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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

 

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(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]

 

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

 

	Date:  April 2, 2014	Bluerock Residential Growth REIT, Inc.
	 	a Maryland corporation
	 	 	 
	 	By:	/s/ Christopher J. Vohs
	 	Name:	Christopher J. Vohs
	 	Title:	Treasurer and Chief Accounting Officer
	 	 	 
	 	Bluerock Residential Holdings, L.P.
	 	  a Delaware limited partnership
	 	 	 
	 	 	By:	Bluerock Residential Growth REIT, Inc.,
	 	 	 	General Partner
	 	 	 
	 	By:	/s/ Christopher J. Vohs
	 	Name:	Christopher J. Vohs
	 	Title:	Treasurer and Chief Accounting Officer
	 	 	 
	 	Grantee:	 
	 	 	 
	 	BRG Manager, LLC
	 	a Delaware limited liability company
	 	 	 
	 	By: Bluerock Real Estate, L.L.C.
	 	Its: Manager
	 	 	 
	 	By:	/s/ Jordan B. Ruddy
	 	Name:	Jordan B. Ruddy
	 	Title:	Authorized Signatory
	 	 	 
	 	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 April 2, 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 179,562 LTIP
Units in Bluerock Residential Holdings, L.P. (the “Partnership”).

 

3.           The
date on which the LTIP Units were transferred is April 2, 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 April 2, 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 $0.00 per LTIP
                                                              Unit.

 

    	 

    	 

    

 

		6.	The amount paid by the Taxpayer for the LTIP Units was $0.00 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 30, 2015, 33.33% vesting on April 30, 2016 and 33.33% vesting on April 30, 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.Exhibit 4.2

 

March 28, 2014

 

Wunderlich Securities, Inc.

 

2200 Clarendon Boulevard

Arlington, VA 22201

 

As Representative of the Several Underwriters

 

Dear Ladies and Gentlemen:

 

As an inducement
to the Underwriters to execute the Underwriting Agreement (the “Underwriting Agreement”), by and among Bluerock
Residential Growth REIT, Inc., a Maryland corporation (the “Company”), Bluerock Multifamily Holdings, L.P.,
a Delaware limited partnership (the “Operating Partnership”) and BRG Manager, LLC, a Delaware limited liability
company (the “Manager”) on the one hand and Wunderlich Securities, Inc., as representative of the several underwriters
named in Schedule A to the Underwriting Agreement (the “Representative”) on the other hand, pursuant to which
an offering will be made for the Class A shares of common stock of the Company, par value $0.01 per share (the “Common
Shares”), the undersigned hereby agrees that during the period specified in the following paragraph (the “Lock-Up
Period”), the undersigned will not offer, sell, contract to sell, pledge or otherwise dispose of, directly or indirectly,
any shares of common stock or securities convertible into or exchangeable or exercisable for any shares of common stock (including
common and special units of partnership interest in the Operating Partnership, the “Common Stock”), enter into
a transaction which would have the same effect, or enter into any swap, hedge or other arrangement that transfers, in whole or
in part, any of the economic consequences of ownership of the Common Stock, whether any such aforementioned transaction is to be
settled by delivery of the Common Stock or such other securities, in cash or otherwise, or publicly disclose the intention to make
any such offer, sale, pledge or disposition, or to enter into any such transaction, swap, hedge or other arrangement, without,
in each case, the prior written consent of the Representative. In addition, the undersigned agrees that, without the prior written
consent of the Representative, it will not, during the Lock-Up Period, make any demand for or exercise any right with respect to,
the registration of any Common Stock or any security convertible into or exercisable or exchangeable for the Common Stock.

 

The “Lock-Up
Period” will commence on the date of this Lock-Up Agreement and continue and include the date 180 days after the public
offering date set forth on the final prospectus used to sell the Common Stock (the “Public Offering Date”) pursuant
to the Underwriting Agreement; provided, however, that (subject to the second succeeding paragraph) if (1) during
the last 17 days of the initial Lock-Up Period, the Company releases earnings results or material news or a material event relating
to the Company occurs or (2) prior to the expiration of the initial Lock-Up Period, the Company announces that it will release
earnings results during the 16-day period beginning on the last day of the initial Lock-Up Period, then in each case the Lock-Up
Period will be extended until the expiration of the 18-day period beginning on the date of release of the earnings results or the
occurrence of the material news or material event, as applicable, unless the Representative waives, in writing, such extension.

 

    	 

    	 

    

 

The undersigned agrees
that, prior to engaging in any transaction or taking any other action that is subject to the terms of this Lock-Up Agreement during
the period from the date of this Lock-Up Agreement to and including the 34th day following the expiration of the initial Lock-Up
Period, it will give notice thereof to the Company and will not consummate such transaction or take any such action unless it has
received written confirmation from the Company that the Lock-Up Period (as may have been extended pursuant to the previous paragraph)
has expired.

 

A transfer of Common
Stock to a partner, member, family member or trust may be made, provided, that (i) such transfer shall not involve a disposition
for value, (ii) the transferee agrees to be bound in writing by the terms of this Agreement prior to such transfer, and (iii) no
filing or public announcement by any party (donor, donee, transferor or transferee) under the Securities Exchange Act of 1934,
as amended, or otherwise shall be required or shall be voluntarily made in connection with such transfer (other than a filing on
a Form 5 made after the expiration of the Lock-Up Period).

 

In furtherance of
the foregoing, the transfer agent and registrar is hereby authorized to decline to make any transfer of shares of Common Stock
if such transfer would constitute a violation or breach of this Agreement.

 

This Agreement shall
be binding on the undersigned and the successors, heirs, personal representatives and assigns of the undersigned. This Agreement
shall lapse and become null and void if the Public Offering Date shall not have occurred on or before March 28, 2014 or if the
Company notifies the Representative in writing that it has elected not to proceed with a public offering of shares of Common Stock.
This agreement shall be governed by, and construed in accordance with, the laws of the State of New York.

 

    	 

    	 

    

  

	 	Very truly yours,
	 	 
	 	Bluerock Multifamily Advisor, LLC,
	 	a Delaware limited liability company
	 	 
	 	By:  BER Holdings, LLC,
	 	a Delaware limited liability company,
	 	its sole member
	 	 
	 	By:  Bluerock Real Estate Holdings, LLC,
	 	a Delaware limited liability
	 	company, its sole member

 

	 	By:	/s/ Michael L. Konig
	 	Name:	Michael L. Konig
	 	Title:	Authorized Signatory

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