Document:

Exhibit 10.2

 

Execution Version

 

GUARANTY

 

THIS GUARANTY dated
as of January 31, 2014 executed and delivered by each of the undersigned and the other Persons from time to time party hereto pursuant
to the execution and delivery of an Accession Agreement in the form of Annex I hereto (all of the undersigned, together with such
other Persons each a “Guarantor” and collectively, the “Guarantors”) in favor of REGIONS BANK, in its capacity
as Administrative Agent (the “Administrative Agent”) for the Lenders under that certain Credit Agreement dated as of
the date hereof (as amended, restated, supplemented or otherwise modified from time to time, the “Credit Agreement”),
by and among TRADE STREET OPERATING PARTNERSHIP, LP (the “Borrower”), Trade Street Residential, Inc., the financial
institutions party thereto and their assignees under Section 13.5. thereof (the “Lenders”), the Administrative
Agent, and the other parties thereto, for its benefit and the benefit of the Lenders, the Issuing Bank and the Specified Derivatives
Providers (the Administrative Agent, the Lenders, the Swingline Lender, the Issuing Bank and the Specified Derivatives Providers,
each individually a “Guarantied Party” and collectively, the “Guarantied Parties”).

 

WHEREAS, pursuant to
the Credit Agreement, the Administrative Agent, the Issuing Bank, the Swingline Lender and the other Lenders have agreed to make
available to the Borrower certain financial accommodations on the terms and conditions set forth in the Credit Agreement;

 

WHEREAS, the Specified
Derivatives Providers may from time to time enter into Specified Derivatives Contracts with the Borrower and/or its Subsidiaries;

 

WHEREAS, each Guarantor
is owned or controlled by the Borrower, or is otherwise an Affiliate of the Borrower;

 

WHEREAS, the Borrower
and the Guarantors, though separate legal entities, are mutually dependent on each other in the conduct of their respective businesses
as an integrated operation and have determined it to be in their mutual best interests to obtain financing from the Administrative
Agent, the Issuing Bank, the Swingline Lender and the other Lenders and to enter into Specified Derivatives Contracts through their
collective efforts;

 

WHEREAS, each Guarantor
acknowledges that it will receive direct and indirect benefits from the Administrative Agent, the Issuing Bank, the Swingline Lender
and the other Lenders making such financial accommodations available to the Borrower under the Credit Agreement and from the Specified
Derivatives Providers entering into Specified Derivatives Contracts, and, accordingly, each Guarantor is willing to guarantee the
Borrower’s obligations to the Administrative Agent, the Issuing Bank, the Swingline Lender and the other Lenders and the
Borrower’s and/or any Subsidiary’s obligations to the Specified Derivatives Providers on the terms and conditions contained
herein; and

 

WHEREAS, each Guarantor’s
execution and delivery of this Guaranty is a condition to the Guarantied Parties’ making, and continuing to make, such financial
accommodations.

 

    	 

    	 

    

  

NOW, THEREFORE, for
good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged by each Guarantor, each Guarantor
agrees as follows:

 

Section 1. Guaranty.
Each Guarantor hereby absolutely, irrevocably and unconditionally guaranties the due and punctual payment and performance when
due, whether at stated maturity, by acceleration or otherwise, of all of the following (collectively referred to as the “Guarantied
Obligations”): (a) all indebtedness and obligations owing by the Borrower or any other Loan Party to any Lender, the Issuing
Bank or the Administrative Agent under or in connection with the Credit Agreement or any other Loan Document, including without
limitation, the repayment of all principal of the Revolving Loans and Swingline Loans, and the Reimbursement Obligations, and the
payment of all interest, fees, charges, attorneys’ fees and other amounts payable to any Lender, the Issuing Bank or the
Administrative Agent thereunder or in connection therewith; (b) all existing or future payment and other obligations owing
by any Loan Party under any Specified Derivatives Contract (other than any Excluded Swap Obligation); (c) any and all extension,
renewals, modifications, amendments or substitutions of the foregoing; (d) all expenses, including, without limitation, attorneys’
fees and disbursements, that are incurred by the Administrative Agent or any other Guarantied Party in the enforcement of any of
the foregoing or any obligation of such Guarantor hereunder; and (e) all other Obligations.

 

Section 2. Guaranty
of Payment and Not of Collection. This Guaranty is a guaranty of payment, and not of collection, and a debt of each Guarantor
for its own account. Accordingly, the Guarantied Parties shall not be obligated or required before enforcing this Guaranty against
any Guarantor: (a) to pursue any right or remedy the Guarantied Parties may have against the Borrower, any other Loan Party or
any other Person or commence any suit or other proceeding against the Borrower, any other Loan Party or any other Person in any
court or other tribunal; (b) to make any claim in a liquidation or bankruptcy of the Borrower, any other Loan Party or any other
Person; or (c) to make demand of the Borrower, any other Loan Party or any other Person or to enforce or seek to enforce or realize
upon any collateral security held by the Guarantied Parties which may secure any of the Guarantied Obligations.

 

Section 3. Guaranty
Absolute. Each Guarantor guarantees that the Guarantied Obligations will be paid strictly in accordance with the terms of the
documents evidencing the same, regardless of any Applicable Law now or hereafter in effect in any jurisdiction affecting any of
such terms or the rights of the Guarantied Parties with respect thereto. The liability of each Guarantor under this Guaranty shall
be absolute, irrevocable and unconditional in accordance with its terms and shall remain in full force and effect without regard
to, and shall not be released, suspended, discharged, terminated or otherwise affected by, any circumstance or occurrence whatsoever,
including without limitation, the following (whether or not such Guarantor consents thereto or has notice thereof):

 

(a)          (i)
any change in the amount, interest rate or due date or other term of any of the Guarantied Obligations, (ii) any change in the
time, place or manner of payment of all or any portion of the Guarantied Obligations, (iii) any amendment or waiver of, or consent
to the departure from or other indulgence with respect to, the Credit Agreement, any other Loan Document, any Specified Derivatives
Contract, or any other document, instrument or agreement evidencing or relating to any Guarantied Obligations (the “Guarantied
Documents”), or (iv) any waiver, renewal, extension, addition, or supplement to, or deletion from, or any other action or
inaction under or in respect of, any Guarantied Document or any assignment or transfer of any Guarantied Document;

 

(b)          any
lack of validity or enforceability of any Guarantied Document or any assignment or transfer of any Guarantied Document;

 

(c)          any
furnishing to any of the Guarantied Parties of any security for any of the Guarantied Obligations, or any sale, exchange, release
or surrender of, or realization on, any collateral securing any of the Guarantied Obligations;

 

(d)          any
settlement or compromise of any of the Guarantied Obligations, any security therefor, or any liability of any other party with
respect to any of the Guarantied Obligations, or any subordination of the payment of any of the Guarantied Obligations to the payment
of any other liability of the Borrower or any other Loan Party;

 

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(e)          any
bankruptcy, insolvency, reorganization, composition, adjustment, dissolution, liquidation or other like proceeding relating to
such Guarantor, any other Loan Party or any other Person, or any action taken with respect to this Guaranty by any trustee or receiver,
or by any court, in any such proceeding;

 

(f)          any
act or failure to act by any Loan Party or any other Person which may adversely affect such Guarantor’s subrogation rights,
if any, against any other Loan Party or any other Person to recover payments made under this Guaranty;

 

(g)          any
nonperfection or impairment of any security interest or other Lien on any collateral, if any, securing in any way any of the Guarantied
Obligations;

 

(h)          any
application of sums paid by any Loan Party or any other Person with respect to the liabilities of any Loan Party to any of the
Guarantied Parties, regardless of what liabilities of the Borrower remain unpaid;

 

(i)          any
defect, limitation or insufficiency in the borrowing powers of the Borrower or in the exercise thereof;

 

(j)          any
defense, set off, claim or counterclaim (other than indefeasible payment and performance in full) which any at any time be available
to or be asserted by any Loan Party or any other Person against any Guarantied Party;

 

(k)          any
change in the corporate existence, structure or ownership of any Loan Party;

 

(l)          any
statement, representation or warranty made or deemed made by or on behalf of any other Loan Party under any Guarantied Document,
or any amendment hereto or thereto, proves to have been incorrect or misleading in any respect; or

 

(m)          any
other circumstance which might otherwise constitute a defense available to, or a discharge of, a Guarantor hereunder (other than
indefeasible payment and performance in full).

 

Section 4. Action
with Respect to Guarantied Obligations. The Guarantied Parties may, at any time and from time to time, without the consent
of, or notice to, any Guarantor, and without discharging any Guarantor from its obligations hereunder, take any and all actions
described in Section 3. and may otherwise: (a) amend, modify, alter or supplement the terms of any of the Guarantied Obligations
with the required consent of each Loan Party party thereto, including, but not limited to, extending or shortening the time of
payment of any of the Guarantied Obligations or changing the interest rate that may accrue on any of the Guarantied Obligations;
(b) amend, modify, alter or supplement any Guarantied Document with the required consent of each Loan Party party thereto;
(c) sell, exchange, release or otherwise deal with all, or any part, of any collateral securing any of the Guarantied Obligations;
(d) release any Loan Party or other Person liable in any manner for the payment or collection of any of the Guarantied Obligations;
(e) exercise, or refrain from exercising, any rights against any Loan Party or any other Person; and (f) apply any sum, by whomsoever
paid or however realized, to the Guarantied Obligations in such order as the Guarantied Parties shall elect.

 

Section 5. Representations
and Warranties. Each Guarantor hereby makes to the Administrative Agent and the other Guarantied Parties all of the
representations and warranties made by the Borrower with respect to or in any way relating to such Guarantor in the Credit Agreement
and the other Guarantied Documents, as if the same were set forth herein in full.

 

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Section 6. Covenants.
Each Guarantor will comply with all covenants with which the Borrower is to cause such Guarantor to comply under the terms of the
Credit Agreement or any of the other Guarantied Documents.

 

Section 7. Waiver.
Each Guarantor, to the fullest extent permitted by Applicable Law, hereby waives notice of acceptance hereof or any presentment,
demand, protest or notice of any kind, and any other act or thing, or omission or delay to do any other act or thing, which in
any manner or to any extent might vary the risk of such Guarantor or which otherwise might operate to discharge such Guarantor
from its obligations hereunder.

 

Section 8. Inability
to Accelerate. If the Guarantied Parties or any of them are prevented under Applicable Law or otherwise from demanding or accelerating
payment of any of the Guarantied Obligations by reason of any automatic stay or otherwise, the Administrative Agent and/or the
other Guarantied Parties shall be entitled to receive from each Guarantor, upon demand therefor, the sums which otherwise would
have been due had such demand or acceleration occurred.

 

Section 9. Reinstatement
of Guarantied Obligations. If a claim is ever made on the Administrative Agent or any other Guarantied Party for repayment
or recovery of any amount or amounts received in payment or on account of any of the Guarantied Obligations, and the Administrative
Agent or such other Guarantied Party repays all or part of said amount by reason of (a) any judgment, decree or order of any court
or administrative body of competent jurisdiction, or (b) any settlement or compromise of any such claim effected by the Administrative
Agent or such other Guarantied Party with any such claimant (including the Borrower or a trustee in bankruptcy for the Borrower),
then and in such event each Guarantor agrees that any such judgment, decree, order, settlement or compromise shall be binding on
it, notwithstanding any revocation hereof or the cancellation of any of the Guarantied Documents and such Guarantor shall be and
remain liable to the Administrative Agent or such other Guarantied Party for the amounts so repaid or recovered to the same extent
as if such amount had never originally been paid to the Administrative Agent or such other Guarantied Party.

 

Section 10. Subrogation.
Upon the making by any Guarantor of any payment hereunder for the account of another Loan Party, such Guarantor shall be subrogated
to the rights of the payee against such Loan Party; provided, however, that such Guarantor shall not enforce any
right or receive any payment by way of subrogation or otherwise take any action in respect of any other claim or cause of action
such Guarantor may have against such Loan Party arising by reason of any payment or performance by such Guarantor pursuant to this
Guaranty, unless and until all of the Guarantied Obligations have been indefeasibly paid and performed in full. If any amount shall
be paid to such Guarantor on account of or in respect of such subrogation rights or other claims or causes of action, such Guarantor
shall hold such amount in trust for the benefit of the Guarantied Parties and shall forthwith pay such amount to the Administrative
Agent to be credited and applied against the Guarantied Obligations, whether matured or unmatured, in accordance with the terms
of the Credit Agreement or to be held by the Administrative Agent as collateral security for any Guarantied Obligations existing.

 

Section 11. Payments
Free and Clear. All sums payable by each Guarantor hereunder, whether of principal, interest, Fees, expenses, premiums or otherwise,
shall be paid in full, without set-off or counterclaim or any deduction or withholding whatsoever (including any Taxes), and if
such Guarantor is required by Applicable Law or by any Governmental Authority to make any such deduction or withholding such Guarantor
shall pay to the Administrative Agent and the Lenders such additional amount as will result in the receipt by the Administrative
Agent and the Lenders of the full amount payable hereunder had such deduction or withholding not occurred or been required.

 

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Section 12. Set-off.
In addition to any rights now or hereafter granted under any of the other Guarantied Documents or Applicable Law and not
by way of limitation of any such rights, each Guarantor hereby authorizes each Guarantied Party, each Affiliate of a Guarantied
Party, and each Participant, at any time while an Event of Default exists, without any prior notice to such Guarantor or to any
other Person, any such notice being hereby expressly waived, but in the case of a Guarantied Party (other than the Administrative
Agent), an Affiliate of a Guarantied Party (other than the Administrative Agent), or a Participant, subject to receipt of the prior
written consent of the Requisite Lenders exercised in their sole discretion, to set-off and to appropriate and to apply any and
all deposits (general or special, including, but not limited to, indebtedness evidenced by certificates of deposit, whether matured
or unmatured) and any other indebtedness at any time held or owing by a Guarantied Party , an Affiliate of a Guarantied Party or
such Participant to or for the credit or the account of such Guarantor against and on account of any of the Guarantied Obligations,
although such obligations shall be contingent or unmatured. Each Guarantor agrees, to the fullest extent permitted by Applicable
Law, that any Participant may exercise rights of setoff or counterclaim and other rights with respect to its participation as fully
as if such Participant were a direct creditor of such Guarantor in the amount of such participation.

 

Section 13. Subordination.
Each Guarantor hereby expressly covenants and agrees for the benefit of the Guarantied Parties that all obligations and liabilities
of any other Loan Party to such Guarantor of whatever description, including without limitation, all intercompany receivables of
such Guarantor from any other Loan Party (collectively, the “Junior Claims”) shall be subordinate and junior in right
of payment to all Guarantied Obligations. If an Event of Default shall exist, no Guarantor shall accept any direct or indirect
payment (in cash, property or securities, by setoff or otherwise) from or any other Loan Party on account of or in any manner in
respect of any Junior Claim until all of the Guarantied Obligations have been indefeasibly paid in full. Notwithstanding anything
to the contrary in this Section 13, each Loan Party shall be permitted to make Restricted Payments owing by it to a Guarantor during
an Event of Default to the extent such Restricted Payments are permitted to be made during an Event of Default pursuant to Section
10.1.(e) of the Credit Agreement.

 

Section 14. Avoidance
Provisions. It is the intent of each Guarantor and the Guarantied Parties that in any Proceeding, such Guarantor’s maximum
obligation hereunder shall equal, but not exceed, the maximum amount which would not otherwise cause the obligations of such Guarantor
hereunder (or any other obligations of such Guarantor to the Guarantied Parties) to be avoidable or unenforceable against such
Guarantor in such Proceeding as a result of Applicable Law, including without limitation, (a) Section 548 of the Bankruptcy Code
and (b) any state fraudulent transfer or fraudulent conveyance act or statute applied in such Proceeding, whether by virtue of
Section 544 of the Bankruptcy Code or otherwise. The Applicable Laws under which the possible avoidance or unenforceability of
the obligations of such Guarantor hereunder (or any other obligations of such Guarantor to the Guarantied Parties) shall be determined
in any such Proceeding are referred to as the “Avoidance Provisions”. Accordingly, to the extent that the obligations
of any Guarantor hereunder would otherwise be subject to avoidance under the Avoidance Provisions, the maximum Guarantied Obligations
for which such Guarantor shall be liable hereunder shall be reduced to that amount which, as of the time any of the Guarantied
Obligations are deemed to have been incurred under the Avoidance Provisions, would not cause the obligations of any Guarantor hereunder
(or any other obligations of such Guarantor to the Guarantied Parties), to be subject to avoidance under the Avoidance Provisions.
This Section is intended solely to preserve the rights of the Administrative Agent and the other Guarantied Parties hereunder to
the maximum extent that would not cause the obligations of any Guarantor hereunder to be subject to avoidance under the Avoidance
Provisions, and no Guarantor or any other Person shall have any right or claim under this Section as against the Guarantied Parties
that would not otherwise be available to such Person under the Avoidance Provisions.

 

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Section 15. Information.
Each Guarantor assumes all responsibility for being and keeping itself informed of the financial condition of the Loan Parties,
and of all other circumstances bearing upon the risk of nonpayment of any of the Guarantied Obligations and the nature, scope and
extent of the risks that such Guarantor assumes and incurs hereunder, and agrees that neither of the Administrative Agent nor any
other Guarantied Party shall have any duty whatsoever to advise any Guarantor of information regarding such circumstances or risks.

 

Section 16. Governing
Law. THIS GUARANTY SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK APPLICABLE TO
CONTRACTS EXECUTED, AND TO BE FULLY PERFORMED, IN SUCH STATE.

 

SECTION 17. WAIVER
OF JURY TRIAL.

 

(a)          EACH
GUARANTOR, AND EACH OF THE GUARANTIED PARTIES BY ACCEPTING THE BENEFITS HEREOF, ACKNOWLEDGES THAT ANY DISPUTE OR CONTROVERSY BETWEEN
OR AMONG SUCH GUARANTOR AND ANY OF THE GUARANTIED PARTIES WOULD BE BASED ON DIFFICULT AND COMPLEX ISSUES OF LAW AND FACT AND WOULD
RESULT IN DELAY AND EXPENSE TO THE PARTIES. ACCORDINGLY, TO THE EXTENT PERMITTED BY APPLICABLE LAW, EACH OF THE GUARANTORS, AND
THE GUARANTIED PARTIES BY ACCEPTING THE BENEFITS HEREOF, HEREBY WAIVES ITS RIGHT TO A TRIAL BY JURY IN ANY ACTION OR PROCEEDING
OF ANY KIND OR NATURE IN ANY COURT OR TRIBUNAL IN WHICH AN ACTION MAY BE COMMENCED BY OR AGAINST ANY PARTY HERETO ARISING OUT OF
THIS GUARANTY.

 

(b)          EACH
GUARANTOR IRREVOCABLY AND UNCONDITIONALLY AGREES THAT IT WILL NOT COMMENCE ANY ACTION, LITIGATION OR PROCEEDING OF ANY KIND OR
DESCRIPTION, WHETHER IN LAW OR EQUITY, WHETHER IN CONTRACT OR IN TORT OR OTHERWISE, AGAINST THE ADMINISTRATIVE AGENT, THE ISSUING
BANK, ANY LENDER OR ANY RELATED PARTY OF THE FOREGOING IN ANY WAY RELATING TO THIS GUARANTY OR ANY OTHER LOAN DOCUMENT OR THE TRANSACTIONS
RELATING HERETO OR THERETO, IN ANY FORUM OTHER THAN THE COURTS OF THE STATE OF NEW YORK SITTING IN NEW YORK COUNTY, AND OF THE
UNITED STATES DISTRICT COURT OF THE SOUTHERN DISTRICT OF NEW YORK, AND ANY APPELLATE COURT FROM ANY THEREOF, AND EACH OF THE PARTIES
HERETO IRREVOCABLY AND UNCONDITIONALLY SUBMITS TO THE JURISDICTION OF SUCH COURTS AND AGREES THAT ALL CLAIMS IN RESPECT OF ANY
SUCH ACTION, LITIGATION OR PROCEEDING MAY BE HEARD AND DETERMINED IN SUCH NEW YORK STATE COURT OR, TO THE FULLEST EXTENT PERMITTED
BY APPLICABLE LAW, IN SUCH FEDERAL COURT. EACH OF THE PARTIES HERETO AGREES THAT A FINAL JUDGMENT IN ANY SUCH ACTION, LITIGATION
OR PROCEEDING SHALL BE CONCLUSIVE AND MAY BE ENFORCED IN OTHER JURISDICTIONS BY SUIT ON THE JUDGMENT OR IN ANY OTHER MANNER PROVIDED
BY LAW. NOTHING IN THIS GUARANTY OR IN ANY OTHER LOAN DOCUMENT SHALL AFFECT ANY RIGHT THAT THE ADMINISTRATIVE AGENT, THE ISSUING
BANK OR ANY LENDER OR ANY OTHER GUARANTIED PARTY MAY OTHERWISE HAVE TO BRING ANY ACTION OR PROCEEDING RELATING TO THIS GUARANTY
OR ANY OTHER LOAN DOCUMENT AGAINST ANY GUARANTOR OR ITS PROPERTIES IN THE COURTS OF ANY JURISDICTION. EACH PARTY FURTHER WAIVES
ANY OBJECTION THAT IT MAY NOW OR HEREAFTER HAVE TO THE VENUE OF ANY SUCH ACTION OR PROCEEDING IN ANY SUCH COURT OR THAT SUCH ACTION
OR PROCEEDING WAS BROUGHT IN AN INCONVENIENT FORUM, AND EACH AGREES NOT TO PLEAD OR CLAIM THE SAME. THE CHOICE OF FORUM SET FORTH
IN THIS SECTION SHALL NOT BE DEEMED TO PRECLUDE THE BRINGING OF ANY ACTION BY THE ADMINISTRATIVE AGENT, THE ISSUING BANK OR ANY
LENDER OR THE ENFORCEMENT BY THE ADMINISTRATIVE AGENT, THE ISSUING BANK OR ANY LENDER OF ANY JUDGMENT OBTAINED IN SUCH FORUM IN
ANY OTHER APPROPRIATE JURISDICTION.

 

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(c)          THE
PROVISIONS OF THIS SECTION HAVE BEEN CONSIDERED BY EACH PARTY WITH THE ADVICE OF COUNSEL AND WITH A FULL UNDERSTANDING OF THE LEGAL
CONSEQUENCES THEREOF, AND SHALL SURVIVE THE PAYMENT OF THE LOANS AND ALL OTHER AMOUNTS PAYABLE HEREUNDER OR UNDER THE OTHER LOAN
DOCUMENTS, THE TERMINATION OR EXPIRATION OF ALL LETTERS OF CREDIT AND THE TERMINATION OF THIS GUARANTY.

 

Section 18. Loan
Accounts. The Administrative Agent and each other Guarantied Party may maintain books and accounts setting forth the amounts
of principal, interest and other sums paid and payable with respect to the Guarantied Obligations arising under or in connection
with the Loan Documents, and in the case of any dispute relating to any of the outstanding amount, payment or receipt of any of
such Guarantied Obligations or otherwise, the entries in such books and accounts shall be binding on the Guarantors absent manifest
error. The failure of the Administrative Agent or any other Guarantied Party to maintain such books and accounts shall not in any
way relieve or discharge any Guarantor of any of its obligations hereunder.

 

Section 19. Waiver
of Remedies. No delay or failure on the part of the Administrative Agent or any other Guarantied Party in the exercise of any
right or remedy it may have against any Guarantor hereunder or otherwise shall operate as a waiver thereof, and no single or partial
exercise by the Administrative Agent or any other Guarantied Party of any such right or remedy shall preclude any other or further
exercise thereof or the exercise of any other such right or remedy.

 

Section 20. Termination.
This Guaranty shall remain in full force and effect with respect to each Guarantor until indefeasible payment in full of the Guarantied
Obligations and the termination or cancellation of all Guarantied Documents in accordance with their respective terms.

 

Section 21. Successors
and Assigns. Each reference herein to the Administrative Agent or any other Guarantied Party shall be deemed to include such
Person’s respective successors and assigns (including, but not limited to, any holder of the Guarantied Obligations) in whose
favor the provisions of this Guaranty also shall inure, and each reference herein to each Guarantor shall be deemed to include
such Guarantor’s successors and assigns, upon whom this Guaranty also shall be binding. The Guarantied Parties may, in accordance
with the applicable provisions of the Guarantied Documents, assign, transfer or sell any Guarantied Obligation, or grant or sell
participations in any Guarantied Obligations, to any Person without the consent of, or notice to, any Guarantor and without releasing,
discharging or modifying any Guarantor’s obligations hereunder. Each Guarantor hereby consents to the delivery by the Administrative
Agent and any other Guarantied Party to any Assignee or Participant (or any prospective Assignee or Participant) of any financial
or other information regarding the Borrower or any Guarantor. No Guarantor may assign or transfer its obligations hereunder to
any Person without the prior written consent of all Lenders and any such assignment or other transfer to which all of the Lenders
have not so consented shall be null and void.

 

Section 22. Joint
and Several Obligations. the obligationS of the Guarantors HEREUNDER SHALL BE joint and several, and ACCORDINGLY, each Guarantor
CONFIRMS THAT IT is liable for the full amount of the “GUARANTiED Obligations” AND ALL OF THE OBLIGATIONS AND LIABILITIES
OF EACH OF THE OTHER gUARANTORS HEREUNDER.

 

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Section 23. Amendments.
This Guaranty may not be amended except in writing signed by the Administrative Agent and each Guarantor, subject to Section 13.6.
of the Credit Agreement.

 

Section 24. Payments.
All payments to be made by any Guarantor pursuant to this Guaranty shall be made in Dollars, in immediately available funds to
the Administrative Agent at its Principal Office, not later than 1:00 p.m. Eastern time, on the date one Business Day after demand
therefor.

 

Section 25. Notices.
All notices, requests and other communications hereunder shall be in writing (including facsimile transmission or similar writing)
and shall be given (a) to each Guarantor at its address set forth below its signature hereto, (b) to the Administrative Agent or
any other Guarantied Party at its address for notices provided for in the Guarantied Documents, as applicable, or (c) as to each
such party at such other address as such party shall designate in a written notice to the other parties. Each such notice, request
or other communication shall be effective (i) if mailed, when received; (ii) if telecopied, when transmitted; or (iii) if hand
delivered, when delivered; provided, however, that any notice of a change of address for notices shall not be effective
until received.

 

Section 26. Severability.
In case any provision of this Guaranty shall be invalid, illegal or unenforceable in any jurisdiction, the validity, legality and
enforceability of the remaining provisions shall not in any way be affected or impaired thereby.

 

Section 27. Headings.
Section headings used in this Guaranty are for convenience only and shall not affect the construction of this Guaranty.

 

Section 28. Limitation
of Liability. None of the Administrative Agent, any other Guarantied Party or any of their respective Related Parties shall
have any liability with respect to, and each Guarantor hereby waives, releases, and agrees not to sue any of them upon, any claim
for any special, indirect, incidental, or consequential damages suffered or incurred by a Guarantor in connection with, arising
out of, or in any way related to, this Guaranty, any of the other Guarantied Documents, or any of the transactions contemplated
by this Guaranty or any of the other Guarantied Documents. Each Guarantor hereby waives, releases, and agrees not to sue the Administrative
Agent, any other Guarantied Party or any of their respective Related Parties for punitive damages in respect of any claim in connection
with, arising out of, or in any way related to, this Guaranty, any of the other Guarantied Documents, or any of the transactions
contemplated thereby.

 

Section 29. Electronic
Delivery of Certain Information. Each Guarantor acknowledges and agrees that information regarding the Guarantor may be delivered
electronically pursuant to Section 9.5. of the Credit Agreement.

 

Section 30. Right
of Contribution. The Guarantors hereby agree as among themselves that, if any Guarantor shall make an Excess Payment, such
Guarantor shall have a right of contribution from each other Guarantor in an amount equal to such other Guarantor’s Contribution
Share of such Excess Payment. The payment obligations of any Guarantor under this Section shall be subordinate and subject in right
of payment to the Guarantied Obligations until such time as the Guarantied Obligations have been indefeasibly paid and performed
in full and the Commitments have expired or terminated, and none of the Guarantors shall exercise any right or remedy under this
Section against any other Guarantor until such Obligations have been indefeasibly paid and performed in full and the Commitments
have expired or terminated. Subject to Section 10 of this Guaranty, this Section shall not be deemed to affect any right of subrogation,
indemnity, reimbursement or contribution that any Guarantor may have under Applicable Law against any other Loan Party in respect
of any payment of Guarantied Obligations. Notwithstanding the foregoing, all rights of contribution against any Guarantor shall
terminate from and after such time, if ever, that such Guarantor shall cease to be a Guarantor in accordance with the applicable
provisions of the Loan Documents.

 

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Section 31. Keepwell.
Each Qualified ECP Guarantor hereby, jointly and severally, absolutely, unconditionally and irrevocably undertakes to provide such
funds or other support as may be needed from time to time by each other Loan Party to honor all of its obligations under this Guaranty
in respect of Swap Obligations (provided, however, that each Qualified ECP Guarantor shall only be liable under this
Section for the maximum amount of such liability that can be hereby incurred without rendering its obligations under this Section,
or otherwise under this Guaranty, voidable under applicable law relating to fraudulent conveyance or fraudulent transfer, and not
for any greater amount). The obligations of each Qualified ECP Guarantor under this Section shall remain in full force and effect
until this Guaranty has been terminated pursuant to Section 20. Each Qualified ECP Guarantor intends that this Section constitute,
and this Section shall be deemed to constitute, a “keepwell, support, or other agreement” for the benefit of each other
Loan Party for all purposes of Section 1a(18)(A)(v)(II) of the Commodity Exchange Act.

 

Section 32. Definitions.
(a) For the purposes of this Guaranty:

 

“Bankruptcy
Code” means Title 11 of the United States Code entitled “Bankruptcy”, as amended from time to time, and any
successor statute or statutes and all rules and regulations from time to time promulgated thereunder, and any comparable foreign
laws relating to bankruptcy, insolvency or creditors’ rights.

 

“Contribution
Share” means, for any Guarantor in respect of any Excess Payment made by any other Guarantor, the ratio (expressed as
a percentage) as of the date of such Excess Payment of (i) the amount by which the aggregate present fair salable value of
all of its assets and properties exceeds the amount of all debts and liabilities of such Guarantor (including contingent, subordinated,
unmatured, and unliquidated liabilities, but excluding the obligations of such Guarantor hereunder) to (ii) the amount by
which the aggregate present fair salable value of all assets and other properties of the Loan Parties other than the maker of such
Excess Payment exceeds the amount of all of the debts and liabilities (including contingent, subordinated, unmatured, and unliquidated
liabilities, but excluding the obligations of the Loan Parties) of the Loan Parties other than the maker of such Excess Payment;
provided, however, that, for purposes of calculating the Contribution Shares of the Guarantors in respect of any
Excess Payment, any Guarantor that became a Guarantor subsequent to the date of any such Excess Payment shall be deemed to have
been a Guarantor on the date of such Excess Payment and the financial information for such Guarantor as of the date such Guarantor
became a Guarantor shall be utilized for such Guarantor in connection with such Excess Payment.

 

“Excess Payment”
means the amount paid by any Guarantor in excess of its Ratable Share of any Guarantied Obligations.

 

“Proceeding”
means any of the following: (i) a voluntary or involuntary case concerning any Guarantor shall be commenced under the Bankruptcy
Code; (ii) a custodian (as defined in such Bankruptcy Code or any other applicable bankruptcy laws) is appointed for, or takes
charge of, all or any substantial part of the property of any Guarantor; (iii) any other proceeding under any Applicable Law,
domestic or foreign, relating to bankruptcy, insolvency, reorganization, winding-up or composition for adjustment of debts, whether
now or hereafter in effect, is commenced relating to any Guarantor; (iv) any Guarantor is adjudicated insolvent or bankrupt;
(v) any order of relief or other order approving any such case or proceeding is entered by a court of competent jurisdiction;
(vi) any Guarantor makes a general assignment for the benefit of creditors; (vii) any Guarantor shall fail to pay, or
shall state that it is unable to pay, or shall be unable to pay, its debts generally as they become due; (viii) any Guarantor
shall call a meeting of its creditors with a view to arranging a composition or adjustment of its debts; (ix) any Guarantor
shall by any act or failure to act indicate its consent to, approval of or acquiescence in any of the foregoing; or (x) any
corporate action shall be taken by any Guarantor for the purpose of effecting any of the foregoing.

 

    	-9-

    	 

    

 

“Qualified
ECP Guarantor” means, in respect of any Swap Obligation, each Loan Party that has total assets exceeding $10,000,000
at the time the relevant Guarantee or grant of the relevant security interest becomes effective with respect to such Swap Obligation
or such other person as constitutes an “eligible contract participant” under the Commodity Exchange Act or any regulations
promulgated thereunder and can cause another person to qualify as an “eligible contract participant” at such time by
entering into a keepwell under Section 1a(18)(A)(v)(II) of the Commodity Exchange Act.

 

“Ratable Share”
means, for any Guarantor in respect of any payment of Guarantied Obligations, the ratio (expressed as a percentage) as of the date
of such payment of Guarantied Obligations of (i) the amount by which the aggregate present fair salable value of all of its
assets and properties exceeds the amount of all debts and liabilities of such Guarantor (including contingent, subordinated, unmatured,
and unliquidated liabilities, but excluding the obligations of such Guarantor hereunder) to (ii) the amount by which the aggregate
present fair salable value of all assets and other properties of all of the Loan Parties exceeds the amount of all of the debts
and liabilities (including contingent, subordinated, unmatured, and unliquidated liabilities, but excluding the obligations of
the Loan Parties hereunder) of the Loan Parties; provided, however, that, for purposes of calculating the Ratable
Shares of the Guarantors in respect of any payment of Guarantied Obligations, any Guarantor that became a Guarantor subsequent
to the date of any such payment shall be deemed to have been a Guarantor on the date of such payment and the financial information
for such Guarantor as of the date such Guarantor became a Guarantor shall be utilized for such Guarantor in connection with such
payment.

 

(b)          Terms
not otherwise defined herein are used herein with the respective meanings given them in the Credit Agreement.

 

[Signatures on Following Page]

 

    	-10-

    	 

    

 

IN WITNESS WHEREOF, each Guarantor has duly
executed and delivered this Guaranty as of the date and year first written above.

 

	 	TRADE STREET RESIDENTIAL, INC.
	 	 	 	 	 	 
	 	By:	/s/ Richard Ross	 
	 	 	Name:	Richard Ross	 
	 	 	Title:	Chief Financial Officer	 
	 	 	 	 	 	 
	 	BSF-ARBORS RIVER OAKS, LLC	 
	 	POST OAK JV, LLC	 
	 	FOX PARTNERS, LLC	 
	 	MERCE PARTNERS, LLC	 
	 	 	 	 	 	 
	 	 	By:	TS Manager, LLC, as manager	 
	 	 	 	 	 	 
	 	 	 	By:	/s/ Richard Ross	 
	 	 	 	Name:	Richard Ross	 
	 	 	 	Title:	Vice President	 

 

	 	Address for Notices for all Guarantors:	 
	 	 	 
	 	c/o Trade Street Residential, Inc.	 
	 	19950 West Country Club Drive, Suite 800	 
	 	Aventura, Florida  33180	 
	 	Attn:  Richard Ross, Chief Financial Officer	 
	 	Telecopier:	786-248-3679	 
	 	Telephone:	786-248-5200	 

 

    	-11-

    	 

    

 

ANNEX I

 

FORM OF ACCESSION AGREEMENT

 

THIS ACCESSION AGREEMENT
dated as of ____________, ____ (this “Agreement”), executed and delivered by ______________________, a _____________
(the “New Guarantor”) in favor of REGIONS BANK, in its capacity as Administrative Agent (the “Administrative
Agent”) under that certain Credit Agreement dated as of January 31, 2014 (as amended, restated, supplemented or otherwise
modified from time to time, the “Credit Agreement”), by and among Trade Street Operating Partnership, LP (the “Borrower”),
Trade Street Residential, Inc., the financial institutions party thereto and their assignees under Section 13.5. thereof (the
“Lenders”), the Administrative Agent, and the other parties thereto, for its benefit and the benefit of the other Guarantied
Parties (as defined in the Guaranty defined below).

 

WHEREAS, pursuant to
the Credit Agreement, the Administrative Agent, the Swingline Lender, the Issuing Bank and the other Lenders have agreed to make
available to the Borrower certain financial accommodations on the terms and conditions set forth in the Credit Agreement;

 

WHEREAS,
the Specified Derivatives Providers, may from time to time enter into Specified Derivatives Contracts, as applicable, with
the Borrower and/or its Subsidiaries;

 

WHEREAS, the New Guarantor
is owned or controlled by the Borrower, or is otherwise an Affiliate of the Borrower;

 

WHEREAS, the Borrower,
the New Guarantor and the other Guarantors, though separate legal entities, are mutually dependent on each other in the conduct
of their respective businesses as an integrated operation and have determined it to be in their mutual best interests to obtain
financial accommodations from the Guarantied Parties through their collective efforts;

 

WHEREAS, the New Guarantor
acknowledges that it will receive direct and indirect benefits from the Administrative Agent, the Issuing Bank, the Swingline Lender
and the other Lenders making such financial accommodations available to the Borrower under the Credit Agreement and from the Specified
Derivatives Providers entering into Specified Derivatives Contracts, and, accordingly, the New Guarantor is willing to guarantee
the Borrower’s obligations to the Administrative Agent, the Issuing Bank, the Swingline Lender and the other Lenders and
the Borrower’s and/or any Subsidiary’s obligations to the Specified Derivatives Providers on the terms and conditions
contained herein and in the Guaranty; and

 

WHEREAS, the New Guarantor’s
execution and delivery of this Agreement is a condition to the Guarantied Parties continuing to make such financial accommodations.

 

NOW, THEREFORE, for
good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged by the New Guarantor, the New Guarantor
agrees as follows:

 

Section 1. Accession
to Guaranty. The New Guarantor hereby agrees that it is a “Guarantor” under the Guaranty dated as of January 31,
2014 (as amended, restated, supplemented or otherwise modified from time to time, the “Guaranty”), made by the Guarantors
party thereto in favor of the Administrative Agent, for its benefit and the benefit of the other Guarantied Parties, and assumes
all obligations of a “Guarantor” thereunder, all as if the New Guarantor had been an original signatory to the Guaranty.
Without limiting the generality of the foregoing, the New Guarantor hereby:

 

    	I-1

    	 

    

 

(a)          irrevocably
and unconditionally guarantees the due and punctual payment and performance when due, whether at stated maturity, by acceleration
or otherwise, of all Guarantied Obligations (as defined in the Guaranty);

 

(b)          makes
to the Administrative Agent and the other Guarantied Parties as of the date hereof each of the representations and warranties contained
in Section 5 of the Guaranty and agrees to be bound by each of the covenants contained in Section 6 of the Guaranty;
and

 

(c)          consents
and agrees to each provision set forth in the Guaranty.

 

SECTION 2. GOVERNING
LAW. THIS AGREEMENT SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK APPLICABLE TO
CONTRACTS EXECUTED, AND TO BE FULLY PERFORMED, IN SUCH STATE.

 

Section 3. Definitions.
Capitalized terms used herein and not otherwise defined herein shall have their respective defined meanings given them in the Credit
Agreement.

 

[Signatures on Following Page]

 

    	I-2

    	 

    

 

IN WITNESS WHEREOF, the New Guarantor has
caused this Accession Agreement to be duly executed and delivered under seal by its duly authorized officers as of the date first
written above.

 

	 	[NEW GUARANTOR]	 
	 	 	 	 	 
	 	By:	 	 
	 	 	Name:	 	 
	 	 	Title:	 	 

 

	 	(CORPORATE SEAL)
	 	 
	 	Address for Notices:
	 	 
	 	c/o Trade Street Residential, Inc.
	 	19950 West Country Club Drive, Suite 800
	 	Aventura, Florida  33180
	 	Attn:  Richard Ross, Chief Financial Officer
	 	Telecopier:	786-248-3679
	 	Telephone:	786-248-6024

 

Accepted:

 

REGIONS BANK, as Administrative Agent

 

	By:	 	 
	 	Name:	 	 
	 	Title:	 	 

 

    	I-3Exhibit 10.3 

 

REVOLVING
NOTE

 

	$25,000,000	January 31, 2014

 

FOR VALUE RECEIVED,
the undersigned, TRADE STREET OPERATING PARTNERSHIP, LP (the “Borrower”)
hereby unconditionally promises to pay to U.S. BANK NATIONAL ASSOCIATION or registered assigns (the “Lender”), in care
of Regions Bank, as Administrative Agent (the “Administrative Agent”), to its address as 3050 Peachtree Road, NW, Suite
400, Atlanta, Georgia 30305, or at such other address as may be specified by the Administrative Agent to the Borrower, the principal
sum of TWENTY-FIVE MILLION AND NO/100 DOLLARS ($25,000,000), or such lesser amount as shall equal the aggregate unpaid principal
amount of Revolving Loans made by the Lender to the Borrower under the Credit Agreement (defined below), on the dates and in the
principal amounts provided in the Credit Agreement, and to pay interest on the unpaid principal amount owing hereunder, at the
rates and on the dates provided in the Credit Agreement (as defined below).

 

This Revolving Note
is one of the “Revolving Notes” referred to in the Credit Agreement dated as of January 31, 2014 (as amended, restated,
supplemented or otherwise modified from time to time, the “Credit Agreement”), by and among the Borrower, Trade Street
Residential, Inc., the financial institutions party thereto and their assignees under Section 13.5. thereof, the Administrative
Agent, and the other parties thereto, and is subject to, and entitled to, all provisions and benefits thereof. Capitalized terms
used herein and not defined herein shall have the respective meanings given to such terms in the Credit Agreement. The Credit Agreement
provides for the acceleration of the maturity of this Revolving Note upon the occurrence of certain events and for prepayments
of Revolving Loans upon the terms and conditions specified therein.

 

The Borrower hereby
waives presentment, demand, protest and notice of any kind (other than any notice required to be provided by the Lender prior to
a Default becoming an Event of Default). No failure to exercise, and no delay in exercising any rights hereunder on the part of
the holder hereof shall operate as a waiver of such rights.

 

Time is of the essence
for this Revolving Note.

 

THIS REVOLVING NOTE
SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK APPLICABLE TO CONTRACTS EXECUTED, AND
TO BE FULLY PERFORMED, IN SUCH STATE.

 

[Signatures on Following Page]

 

    	 

    	 

    

 

IN WITNESS WHEREOF,
the undersigned has executed and delivered this Revolving Note under seal as of the date written above.

 

	 	TRADE STREET OPERATING PARTNERSHIP, LP
	 	 	 	 	 
	 	By:	Trade Street OP GP, LLC, its general partner
	 	 	 	 	 
	 	 	By:	Trade Street Residential, Inc., its sole member
	 	 	 	 	 
	 	 	 	By:	/s/ Richard Ross
	 	 	 	 	Name: Richard Ross
	 	 	 	 	Title:  Chief Financial Officer

 

    	2

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