Document:

REGISTRATION RIGHTS AGREEMENT

 

This REGISTRATION RIGHTS
AGREEMENT (this “Agreement”), dated as of April 2, 2014, is made and entered into by and among Bluerock
Residential Growth REIT, Inc., a Maryland corporation (the “Company”), BR-NPT Springing Entity, LLC (“NPT
SE”), a Delaware limited liability company, and Bluerock Property Management, LLC, a Michigan limited liability company
(“NPT Manager”). NPT SE and NPT Manager are each referred to herein as a “Holder”
and collectively as the “Holders.” Capitalized terms not otherwise defined herein shall have the meanings
ascribed to them in Section 1.

 

 WHEREAS, Bluerock
Residential Holdings, L.P., a Delaware limited partnership (“Bluerock OP”), and NPT SE have entered into
a contribution agreement (the “Contribution Agreement”), pursuant to which NPT SE has contributed all
of its right, title and interest in the Property for operating partnership units of Bluerock OP (“OP Units”)
redeemable for cash or exchangeable, at the Company’s option, for shares of the Company’s Class A common stock (“Class
A Common Stock”) on a one-for-one basis, in accordance with the terms of the Partnership Agreement; and

 

WHEREAS, pursuant to
the terms of certain management arrangements between NPT SE and NPT Manager, NPT Manager was entitled to a disposition fee upon
any disposition of an interest in the Property by NPT SE; and

 

WHEREAS, in lieu of
the payment of the disposition fee payable to NPT Manager in cash, NPT SE determined to have a portion of the OP Units issuable
to it under the Contribution Agreement issued to NPT Manager as payment of the disposition fee and NPT Manager agreed to accept
the OP Units in lieu of cash; and

 

 WHEREAS, the
Company desires to enter into this Agreement with the Holders in order to grant the Holders the registration rights contained herein;
and

 

WHEREAS, NPT SE contributed
the Property to Bluerock OP in consideration of receiving and NPT Manager’s receipt of, among other things, the registration
rights set forth herein.

 

 NOW, THEREFORE,
in consideration of the premises and the mutual promises and covenants contained in this Agreement, and for other good and valuable
consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto hereby agree as follows:

 

 Section 1.
Definitions. As used in this Agreement, the following terms shall have the following meanings:

 

“Affiliate”
shall mean, when used with reference to a specified Person, (i) any Person that directly or indirectly through one or more intermediaries,
Controls or is Controlled by or is under common Control with the specified Person; (ii) any Person who, from time to time, is a
member of the immediate family of a specified Person; (iii) any Person who, from time to time, is an officer or director or manager
of a specified Person; or (iv) any Person who, directly or indirectly, is the beneficial owner of 50% or more of any class of equity
securities or other ownership interests of the specified Person, or of any Person of which the specified Person is directly or
indirectly the owner of 50% or more of any class of equity securities or other ownership interests.

 

“Agreement”
shall mean this Registration Rights Agreement as originally executed and as amended, supplemented or restated from time to time.

 

“Bluerock
OP” has the meaning set forth in the Recitals hereto.

 

“Board”
shall mean the Board of Directors of the Company and any successor governing body of the Company or any successor of the Company.
 

 

“Business
Day” shall mean each day other than a Saturday, a Sunday or any other day on which banking institutions in the State
of New York are authorized or obligated by law or executive order to be closed.

 

    	 

    	 

    

 

“Class
A Common Stock” shall have the meaning set forth in the Recitals hereto.

 

“Commission”
shall mean the United States Securities and Exchange Commission and any successor thereto.

 

“Company”
shall have the meaning set forth in the introductory paragraph hereof and
includes the Company’s successors by merger, acquisition, reorganization or otherwise.

 

“Continuous
Offering Registration Statement” shall have the meaning set forth in Section 2(a) hereof.

 

“Contribution
Agreement” shall have the meaning set forth in the Recitals hereto.

 

“Control”
(including the terms “Controlling,” “Controlled by” and “under
common Control with”) shall mean the possession, direct or indirect, of the power to direct or cause the direction
of the management and policies of a Person through the ownership of Voting Power, by contract or otherwise.

 

“Exchange
Act” shall mean the Securities Exchange Act of 1934, as amended (or any corresponding provision of succeeding law),
and the rules and regulations thereunder.

 

“Holder”
and “Holders” have the meanings set forth in the introductory paragraph above.

 

“NPT Manager”
has the meaning set forth in the introductory paragraph above.

 

“NPT SE”
has the meaning set forth in the introductory paragraph above.

 

“Offering”
means the firmly underwritten public offering by the Company of shares of its Class A Common Stock registered with the Commission
with Registration No. 333-192610.

 

“OP Units”
shall have the meaning set forth in the Recitals hereto.

 

“Partnership
Agreement” means the Second Amended and Restated Agreement of Limited Partnership of Bluerock OP, dated as of April
2, 2014, as the same may be amended, modified or restated from time to time.

 

“Person”
shall mean any individual, partnership, corporation, limited liability company, joint venture, association, trust, unincorporated
organization or other governmental or legal entity.

 

“Piggy-Back
Registration” shall have the meaning set forth in Section 2(c) hereof.

 

“Property”
means that certain multi-family apartment complex containing 313 residential apartment units, commonly known as North Park Towers
located in the City of Southfield, Oakland County, Detroit MSA.

 

“Registrable
Securities” shall mean, at any time, a class of equity securities of the Company or of a successor to the entire
business of the Company which (i) are the shares of Class A Common Stock that may be acquired by each Holder in connection with
the exercise by such Holder of the exchange rights associated with the OP Units and (ii) are of a class of securities that are
listed for trading on a national securities exchange; provided, however, such Registrable Securities shall cease
to be Registrable Securities when (A) a registration statement with respect to the sale of such Registrable Securities shall have
been declared effective by the Commission and all such Registrable Securities shall have been disposed of in accordance with such
registration statement, (B) such Registrable Securities shall have been sold in accordance with Rule 144 (or any successor provision)
under the Securities Act, (C) such Registrable Securities become eligible to be publicly sold without limitation as to amount or
manner of sale pursuant to Rule 144 (or any successor provision) under the Securities Act, (D) such Registrable Securities have
ceased to be outstanding, or (E) such Registrable Securities have otherwise been transferred in a transaction that constitutes
a sale thereof under the Securities Act, the Company has delivered to the Holder’s transferee a new certificate or other
evidence of ownership for such shares not bearing the Securities Act restricted stock legend and such shares may subsequently be
resold or otherwise transferred by such transferee without registration under the Securities Act.

 

    	 

    	 

    

 

“Registration
Expenses” shall mean (i) the fees and disbursements of counsel and independent public accountants for the Company
incurred in connection with the Company’s performance of or compliance with this Agreement, including the expenses of any
special audits or “comfort” letters required by or incident to such performance and compliance, and any premiums and
other costs of policies of insurance obtained by the Company against liabilities arising out of the sale of any securities and
(ii) all registration, filing and stock exchange fees, all fees and expenses of complying with securities or “blue sky”
laws, all fees and expenses of custodians, transfer agents and registrars, all printing expenses, messenger and delivery expenses;
provided, however, Registration Expenses shall not include any out-of-pocket expenses of the Holders, transfer taxes,
underwriting or brokerage commissions or discounts associated with effecting any sales of Registrable Securities that may be offered,
or legal expenses of any Holder or group of Holders, which expenses shall be borne by each Holder of Registrable Securities on
a pro rata basis with respect to the Registrable Securities so sold.

 

“Rule 144”
shall mean Rule 144 promulgated by the Commission under the Securities Act.

 

“Securities
Act” shall mean the Securities Act of 1933, as amended (or any successor corresponding provision of succeeding law),
and the rules and regulations thereunder.

 

“Stand-Off
Period” shall have the meaning set forth in Section 6 hereof.

 

“Voting
Power” shall mean voting securities or other voting interests ordinarily (and apart from rights accruing under special
circumstances) having the right to vote in the election of board members or Persons performing substantially equivalent tasks and
responsibilities with respect to a particular entity.

 

Section 2. Continuous Offering Registration;
Piggy-Back Registration.  

 

(a)
Continuous Offering Registration. The Company agrees to prepare and file with the Commission not
earlier than the first anniversary of the initial closing of the Offering and no later than 30 business days following the first
anniversary of the initial closing of the Offering a
registration statement under Rule 415 of the Securities Act or any successor rule thereto for the offering on a continuous or delayed
basis in the future covering resales of the Registrable Securities (the “Continuous Offering Registration Statement”),
and will use commercially reasonable efforts to cause such Continuous Offering Registration Statement to be declared effective
by the Commission as soon as practicable thereafter. The Continuous Offering Registration Statement shall be on an appropriate
form, as determined by the Company, and the Continuous Offering Registration Statement and any form of prospectus included therein
(or prospectus supplement relating thereto) shall reflect the plan of distribution or method of sale as the Holders may from time
to time specify in a notice to the Company.  In the event that the Company fails to file, or if filed fails to maintain the
effectiveness of, a Continuous Offering Registration Statement, the Holders may participate in a Piggy-Back Registration pursuant
to Section 2(c) hereof, subject to the limitations set forth herein; provided that, if and so long as a Continuous
Offering Registration Statement is on file and effective, then the Company shall have no obligation to allow participation in a
Piggy-Back Registration. 

 

(b) Effectiveness.
The Company shall use commercially reasonable efforts to keep the Continuous Offering Registration Statement continuously effective
for the period beginning on the date on which the Continuous Offering Registration Statement is declared effective and ending on
the date that all of the Registrable Securities registered under the Continuous Offering Registration Statement cease to be Registrable
Securities. During the period that the Continuous Offering Registration Statement is effective, the Company shall supplement or
make amendments to the Continuous Offering Registration Statement, as required by the Securities Act or other law, including to
reflect any specific plan of distribution or method of sale, and shall use its commercially reasonable efforts to have such supplements
and amendments declared effective, if required, as soon as practicable after filing.

 

    	 

    	 

    

 

(c) Piggy-Back Registration.
Subject to Section 2(a) hereof, if the Company proposes to file a registration statement under the Securities Act with
respect to an underwritten equity offering by the Company, in an amount of at least Thirty Million Dollars ($30,000,000) for its
own account or for the account of any of its security holders of any class of security (other than (i) any registration statement
filed by the Company under the Securities Act relating to an offering of Class A Common Stock for its own account as a result of
the exercise of the exchange rights set forth in the Partnership Agreement, (ii) any registration statement filed in connection
with a demand registration right, (iii) a registration statement on Form S-4 or S-8 (or any substitute form that may be adopted
by the Commission) or filed in connection with an exchange offer or offering of securities solely to the Company’s existing
securities holders), or (iv) any registration statement filed prior to the first anniversary of the initial closing of the Offering,
then the Company shall give written notice of such proposed filing to the Holders as soon as practicable (but in no event less
than ten (10) days before the anticipated filing date), and such notice shall offer the Holders the opportunity to register
such number of shares of Registrable Securities as each such Holder may request (a “Piggy-Back Registration”);
provided, however, that in no event shall the Company be required to register in a Piggy-Back Registration any Registrable Securities
registered pursuant to an effective, or filed but not yet effective, Continuous Offering Registration Statement. The Company shall
use its commercially reasonable efforts to cause the managing underwriter or underwriters of a proposed underwritten offering to
permit the Registrable Securities requested to be included in a Piggy-Back Registration to be included on the same terms and conditions
as any similar securities of the Company included therein.

 

(d) Reduction of
Offering. Notwithstanding anything contained herein, if in the opinion of the managing underwriter or underwriters of an offering
described in Section 2(c) hereof, the (i) size of the offering that the Holders, the Company and such other Persons
intend to make or (ii) kind of securities that the Holders, the Company and/or any other Persons intend to include in such
offering are such that the success of the offering would be adversely affected by inclusion of the Registrable Securities requested
to be included, then (A) if the size of the offering is the basis of such underwriter’s opinion, the amount of Registrable
Securities to be offered for the accounts of Holders shall be reduced pro rata (according to the Registrable Securities
proposed for registration) to the extent necessary to reduce the total amount of Registrable Securities to be included in such
offering to the amount recommended by such managing underwriter or underwriters; provided that, in the case of a Piggy-Back
Registration, if the securities are being offered for the account of other Persons as well as the Company, then with respect to
the Registrable Securities intended to be offered by Holders, the proportion by which the amount of such class of securities intended
to be offered by Holders is reduced shall not exceed the proportion by which the amount of such class of the securities intended
to be offered by such other Persons is reduced; and (B) if the combination of the securities to be offered is the basis of
such underwriter’s opinion, (x) the Registrable Securities to be included in such offering shall be reduced as described
in clause (A) above (subject to the proviso in clause (A)) or (y) if the actions described in clause (x) would,
in the opinion of the managing underwriter or underwriters, be insufficient to substantially eliminate the adverse effect that
inclusion of the Registrable Securities requested to be included would have on such offering, such Registrable Securities will
be excluded from such offering.

 

Section 3. Black-Out Periods.  

 

Notwithstanding
anything herein to the contrary, the Company shall have the right, exercisable from time to time by the Board, to defer the filing
of a Registration Statement or to require the Holders not to sell pursuant to a Registration Statement or similar document under
the Securities Act filed pursuant to Section 2 or to suspend the effectiveness thereof if at the time of the delivery of
such notice the Board reasonably and in good faith has determined that (a) such offer or sale of any Registrable Securities would
materially impede, delay or interfere with any material transaction involving the Company; (b) the sale of Registrable Securities
pursuant to a Registration Statement or similar document under the Securities Act filed pursuant to Section 2 would require
disclosure of non-public material information not otherwise required to be disclosed under applicable law; (c)(i) the Company has
a bona fide business purpose for preserving the confidentiality of a material transaction; (ii) disclosure would have a material
adverse effect on the Company or the Company’s ability to consummate such a material transaction; or (iii) such a material
transaction renders the Company unable to comply with Commission requirements, in each case, under circumstances that would make
it impracticable or inadvisable, to cause the Registration Statement or other similar document under the Securities Act filed pursuant
to Section 2 to become effective or to promptly amend or supplement the Registration Statement on a post-effective basis,
as applicable; or (d) the Board determines in good faith that it is in the Company’s best interests or the Company is required
by law, rule or regulation to supplement a Registration Statement or other similar document in order to ensure that the prospectus
included in such Registration Statement or similar document (i) contains the information required by the form on which such Registration
Statement or similar document was filed, or (ii) discloses any facts or events arising after the effective date of the Registration
Statement or similar document that, individually or in the aggregate, represents a fundamental change in the information set forth
therein; provided, however, that in no event shall any black-out period extend for an aggregate period of more than
90 days in any 12-month period. The Company, as soon as practicable, shall (i) give the Holders prompt written notice in the event
that the Company has suspended sales of Registrable Securities pursuant to this Section 3, (ii) give the Holders prompt
written notice of the completion of such suspension event and (iii) use its commercially reasonable efforts to cause the Registration
Statement to become effective or to amend or supplement the Registration Statement on a post-effective basis or to take such action
as is necessary to permit resumed use of the Registration Statement or filing thereof as soon as reasonably possible following
the conclusion of the applicable suspension event and its effect.

 

    	 

    	 

    

 

Each
Holder agrees in connection with the redemption of OP Units in exchange for Registrable Securities, that, upon receipt of any notice
from the Company of the happening of any event of the kind described in this Section 3, such Holder will forthwith
discontinue its disposition of Registrable Securities pursuant to the Continuous Offering Registration Statement relating to such
Registrable Securities until such Holder’s receipt of the notice of completion of such event.

 

Section 4. Registration Procedures.
 

 

(a) In connection with
the filing of the Continuous Offering Registration Statement as provided by this Agreement, until the Registrable Securities cease
to be Registrable Securities, the Company shall use commercially reasonable efforts to, as expeditiously as reasonably practicable:
  

 

(i)            furnish to each
Holder of the Registrable Securities being registered, without charge, such number of conformed copies of such Continuous Offering
Registration Statement and of each such amendment and supplement thereto (in each case including all exhibits) other than those
which are being incorporated into such Continuous Offering Registration Statement by reference, such number of copies of the prospectus
contained in such Continuous Offering Registration Statement (including each complete prospectus and any summary prospectus) and
any other prospectus filed under Rule 424 under the Securities Act in conformity with the requirements of the Securities Act, and
such other documents, including documents incorporated by reference, as such Holder may reasonably request;  

 

(ii)            register or qualify
all Registrable Securities under such other securities or “blue sky” laws of such jurisdictions as the Holders and
the underwriters of the Registrable Securities being registered, if any, shall reasonably request, but only to the extent legally
required to do so, to keep such registration or qualification in effect for so long as such Continuous Offering Registration Statement
remains in effect, to allow the Holders to consummate the disposition in such jurisdiction of the securities owned by the Holders,
except that the Company shall not for any such purpose be required to qualify generally to do business as a foreign company or
to register as a broker or dealer in any jurisdiction where it would not otherwise be required to qualify but for this Section
4(a)(ii), or to consent to general service of process in any such jurisdiction, or to be subject to any material tax obligation
in any such jurisdiction where it is not then so subject;  

 

(iii)           notify the Holders
at any time when the Company becomes aware during any period during which a prospectus for Registrable Securities is required to
be delivered under the Securities Act, of the happening of any event as a result of which the prospectus included in such Continuous
Offering Registration Statement, as then in effect, includes an untrue statement of a material fact or omits to state any material
fact required to be stated therein or necessary to make the statements therein not misleading in light of the circumstances under
which they were made, and promptly prepare and file a supplement or prepare, file and obtain effectiveness of a post-effective
amendment to the Continuous Offering Registration Statement and, at the request of the Holders, furnish to the Holders a reasonable
number of copies of a supplement to, or an amendment of, such prospectus as may be necessary so that, as thereafter delivered to
the purchasers of such Registrable Securities, such prospectus shall not include an untrue statement of a material fact or omit
to state a material fact required to be stated therein or necessary to make the statements therein not misleading in the light
of the circumstances under which they were made;  

 

    	 

    	 

    

 

(iv)            comply or continue
to comply in all material respects with the Securities Act and the Exchange Act and with all applicable rules and regulations of
the Commission thereunder so as to enable any Holder to sell its Registrable Securities pursuant to the Continuous Offering Registration
Statement;

 

(v)            provide a transfer
agent and registrar for all Registrable Securities covered by such Continuous Offering Registration Statement not later than the
effective date of such Continuous Offering Registration Statement;  

 

(vi)            cooperate with
the Holders to facilitate the timely preparation and delivery of certificates representing Registrable Securities to be sold (if
the Registrable Securities are then certificated) and not bearing any Securities Act legend; and enable certificates for such Registrable
Securities to be issued for such number of shares and registered in such names as the Holders may reasonably request in writing
at least two Business Days prior to any sale of Registrable Securities;  

 

(vii)            list all Registrable
Securities covered by such Continuous Offering Registration Statement on any securities exchange or national quotation system on
which any such class of securities is then listed or quoted and cause to be satisfied all requirements and conditions of such securities
exchange or national quotation system to the listing or quoting of such Registrable Securities that are reasonably within the control
of the Company including, without limitation, registering the applicable class of Registrable Securities under the Exchange Act,
if appropriate, and using commercially reasonable efforts to cause such registration to become effective pursuant to the rules
of the Commission;  

 

(viii)          in connection
with any sale, transfer or other disposition by any Holder of any Registrable Securities pursuant to Rule 144, cooperate with such
Holder to facilitate the timely preparation and delivery of certificates representing the Registrable Securities to be sold and
not bearing any Securities Act legend, and enable certificates for such Registrable Securities to be for such number of shares
and registered in such name as the Holders may reasonably request in writing at least three Business Days prior to any sale of
Registrable Securities pursuant to Rule 144. 

 

(ix)            notify the Holders,
promptly after it shall receive notice thereof, of the time when such Continuous Offering Registration Statement, or any post-effective
amendments to the Continuous Offering Registration Statement, shall have become effective, or a supplement to any prospectus forming
part of such Continuous Offering Registration Statement has been filed or when any document is filed with the Commission which
would be incorporated by reference into the prospectus;  

 

(x)            notify the Holders
of any request by the Commission for the amendment or supplement of such Continuous Offering Registration Statement or prospectus
for additional information; and  

 

(xi)          advise the Holders,
promptly after it shall receive notice or obtain actual knowledge thereof, of (A) the issuance of any stop order, injunction or
other order or requirement by the Commission suspending the effectiveness of such Continuous Offering Registration Statement or
the initiation or threatening of any proceeding for such purpose and use commercially reasonable efforts to prevent the issuance
of any stop order, injunction or other order or requirement or to obtain its withdrawal, if such stop order, injunction or other
order or requirement should be issued, (B) the suspension of the registration of the subject shares of the Registrable Securities
in any state or other jurisdiction and (C) the removal of any such stop order, injunction or other order or requirement or proceeding
or the lifting of any such suspension.  

 

(b) In connection with
the filing of any Continuous Offering Registration Statement covering Registrable Securities, each Holder shall furnish in writing
to the Company such information regarding such Holder (and any of his, her or its Affiliates), the intended method of distribution
of such Registrable Securities and such other information requested by the Company as is necessary or advisable for inclusion in
the Continuous Offering Registration Statement relating to such offering pursuant to the Securities Act, including, without limitation,
any information required by Item 507 of Regulation S-K promulgated under the Securities Act as may be amended from time to time.
 

 

    	 

    	 

    

 

Each Holder agrees
by acquisition of the Registrable Securities that (i) upon receipt of any notice from the Company of the happening of any event
of the kind described in Section 4(a)(iii) hereof, such Holder will forthwith discontinue its disposition of Registrable
Securities pursuant to the Continuous Offering Registration Statement until such Holder’s receipt of the copies of the supplemented
or amended prospectus contemplated by Section 4(a)(iii) hereof; (ii) upon receipt of any notice from the Company of the
happening of any event of the kind described in clause (A) of Section 4(a)(xi) hereof, such Holder will discontinue its
disposition of Registrable Securities pursuant to such Continuous Offering Registration Statement until such Holder’s receipt
of the notice described in clause (C) of Section 4(a)(xi) hereof; and (iii) upon receipt of any notice from the Company
of the happening of any event of the kind described in clause (B) of Section 4(a)(xi) hereof, such Holder will discontinue
its disposition of Registrable Securities pursuant to such Continuous Offering Registration Statement in the applicable state jurisdiction(s)
until such Holder’s receipt of the notice described in clause (C) of Section 4(a)(xi) hereof.  

 

Section 5. Indemnification.  

 

(a) Indemnification
by the Company. The Company agrees to indemnify and hold harmless each Holder, its members, partners, officers, directors,
managers, trustees, stockholders, employees, retained professionals, agents and investment advisers, each underwriter, broker or
any other Person on behalf of such Holder, and each Person, if any, who Controls such Holder, together with the members, partners,
officers, directors, managers, trustees, stockholders, employees, retained professionals, agents and investment advisers of such
Controlling Person, against any losses, claims, damages, liabilities and expenses (including, without limitation, reasonable attorneys’
fees),to which a Holder or any such indemnitees may become subject under the Securities Act or otherwise, insofar as such losses,
claims, damages, liabilities and expenses (or actions or proceedings, whether commenced or threatened, in respect thereof) arise
out of, or based upon (i) any untrue statement or alleged untrue statement of any material fact contained in any registration statement
under which such Registrable Securities were registered and sold under the Securities Act, any preliminary prospectus, final prospectus
or summary prospectus contained therein, or any amendment or supplement thereto, or arising out of or based upon any omission or
alleged omission to state therein a material fact required to be stated therein or necessary to make the statements therein, in
light of the circumstances under which they were made, not misleading, or (ii) any violation or alleged violation of the Securities
Act or state securities laws or rules thereunder by the Company that relate to any action or inaction by the Company in connection
with such registration statement, and the Company will reimburse such Person for any reasonable legal or any other expenses reasonably
incurred by any of them in connection with investigating or defending any such loss, claim, liability, action or proceedings; provided,
however, that the Company shall not be liable to, or required to indemnify, any Holder under this Section 5(a) in
any such case to the extent that any such loss, claim, damage, liability (or action or proceeding in respect thereof) or expense
arises out of or is based upon, an untrue statement or alleged statement or omission or alleged omission made in such registration
statement, any such preliminary prospectus, final prospectus, summary prospectus, amendment or supplement in reliance upon and
in conformity with written information furnished to the Company by any such Holder or on such Holder’s behalf. The indemnity
contained in this Section 5(a) shall remain in full force and effect regardless of any investigation made by or on behalf
of a Holder or any such Controlling Person and shall survive the transfer of such securities by a Holder.

 

(b) Indemnification
by the Holder. Each Holder agrees to indemnify and hold harmless the Company, each present or past member of the Board, each
past or present officer, employee, retained professional, agent and investment adviser, each past or present external advisor or
manager, of the Company, underwriter, broker or other Person acting on behalf of the Holder, and each other Person, if any, who
Controls any of the foregoing, together with the members, partners, officers, directors, managers, trustees, stockholders, employees,
retained professionals, agents and investment advisers of such Controlling Person, against any losses, claims, damages, liabilities
and expenses (including, without limitation, reasonable attorneys’ fees), to which the Company or any such indemnitees may
become subject under the Securities Act or otherwise, insofar as such losses, claims, damages, liabilities and expenses (or actions
or proceedings, whether commenced or threatened, in respect thereof) arise out of or are based upon (i) any untrue statement or
alleged untrue statement of a material fact in or omission or alleged omission to state a material fact from such registration
statement, any preliminary prospectus, final prospectus or summary prospectus contained therein, or any amendment or supplement
thereto, if such untrue statement or alleged untrue statement or omission or alleged omission was made in reliance upon information
provided by such Holder or on such Holder’s behalf, or (ii) any violation or alleged violation of the Securities Act or state
securities laws or rules thereunder by such Holder. Such indemnity shall remain in full force and effect regardless of any investigation
made by or on behalf of the Company or any such Board member, officer, employee, agent, investment adviser or Controlling Person
and shall survive the transfer of such securities by any Holder. The obligation of a Holder to indemnify will be several and not
joint, among the Holders of Registrable Securities and shall be limited to the net proceeds (after underwriting fees, commissions
or discounts) actually received by such Holder from the sale of Registrable Securities pursuant to such registration statement,
except in the case of fraud or willful misconduct by such Holder.

 

    	 

    	 

    

 

(c) Notices of Claims,
Etc. Promptly after receipt by an indemnified party of notice of the commencement of any action or proceeding involving a claim
referred to in the preceding paragraphs of this Section 5, such indemnified party will, if a claim in respect thereof is
to be made against an indemnifying party, give prompt written notice to the latter of the commencement of such action; provided,
however, that the failure of any indemnified party to give notice as provided herein shall not relieve the indemnifying
party of its obligations under the preceding paragraphs of this Section 5, except to the extent that the indemnifying party
is actually and materially prejudiced by such failure to give notice. In case any such action is brought against an indemnified
party, unless in such indemnified party’s reasonable judgment a conflict of interest between such indemnified and indemnifying
parties may exist in respect of such claim, the indemnifying party shall be entitled to assume the defense thereof, for itself,
if applicable, together with any other indemnified party similarly notified, and after notice from the indemnifying party to such
indemnified party of its election so to assume the defense thereof, the indemnifying party shall not be liable to the indemnified
party for any legal or other expenses subsequently incurred by the latter in connection with the defense thereof; provided, that
if (i) any indemnified party shall have reasonably concluded that there may be one or more legal or equitable defenses available
to such indemnified party which are additional to or conflict with those available to the indemnifying party, or that such claim
or litigation involves or could have an effect upon matters beyond the scope of the indemnity provided hereunder, or (ii) such
action seeks an injunction or equitable relief against any indemnified party or involves actual or alleged criminal activity, the
indemnifying party shall not have the right to assume the defense of such action on behalf of such indemnified party without such
indemnified party's prior written consent (but, without such consent, shall have the right to participate therein with counsel
of its choice) and such indemnifying party shall reimburse such indemnified party and any Person controlling such indemnified party
for that portion of the fees and expenses of any counsel retained by the indemnified party which is reasonably related to the matters
covered by the indemnity provided hereunder. The indemnifying party shall not, without the consent of the indemnified party, consent
to any judgment or settlement that (i) does not contain a full and unconditional release of the indemnified party from all liability
concerning any claim or litigation; (ii) includes a statement about or an admission of fault, culpability or a failure to act by
or on behalf of any indemnified party; or (iii) commits any indemnified party to take, or hold back from taking, any action.

 

(d) Indemnification
Payments. To the extent that the indemnifying party does not assume the defense of an action brought against the indemnified
party as provided in Section 5(c) hereof, or assumes such defense and thereafter does not diligently pursue the same to
conclusion the indemnified party (or parties if there is more than one) shall be entitled to the reasonable legal expenses of common
counsel for the indemnified party (or parties). In such event, however, the indemnifying party will not be liable for any settlement
effected without the written consent of such indemnifying party, which consent shall not be unreasonably withheld. The indemnification
required by this Section 5 shall be made by periodic payments of the amount thereof during the course of an investigation
or defense, as and when bills are received or expense, loss, damage or liability is incurred.

 

(e) Contribution.
If, for any reason, the foregoing indemnity is unavailable, or is insufficient to hold harmless an indemnified party, then the
indemnifying party shall contribute to the amount paid or payable by the indemnified party as a result of the expense, loss, damage
or liability, (i) in such proportion as is appropriate to reflect the relative fault of the indemnifying party on the one hand
and the indemnified party on the other (determined by reference to, among other things, whether the untrue or alleged untrue statement
of a material fact or omission relates to information supplied by the indemnifying party or the indemnified party and the parties’
relative intent, knowledge, access to information and opportunity to correct or prevent such untrue statement or omission) or (ii)
if the allocation provided by subclause (i) above is not permitted by applicable law or provides a lesser sum to the indemnified
party than the amount hereinafter calculated, in the proportion as is appropriate to reflect not only the relative fault of the
indemnifying party and the indemnified party, but also the relative benefits received by the indemnifying party on the one hand
and the indemnified party on the other, as well as any other relevant equitable considerations. No indemnified party guilty of
fraudulent misrepresentation (within the meaning of Section 11(f) of the Securities Act) shall be entitled to contribution from
any indemnifying party who was not guilty of such fraudulent misrepresentation.

 

    	 

    	 

    

 

Section 6. Market Stand-Off Agreement.
Each Holder hereby agrees that it shall not, to the extent requested by the Company or an underwriter of securities of the Company
in connection with any public offering of the Company’s Class A Common Stock or other equity securities, directly or indirectly
sell, offer to sell (including, without limitation, any short sale), grant any option or otherwise transfer or dispose of any Registrable
Securities (other than to donees of such Holder, who agree to be similarly bound) within fourteen days prior to, and for up to
90 days following, the effective date of a Continuous Offering Registration Statement of the Company filed under the Securities
Act or the date of an underwriting agreement with respect to an underwritten public offering of the Company’s securities
(the “Stand-Off Period”); provided, however, that:  

 

(a) with respect to
any Stand-Off Period, such agreement to Stand-Off shall not be applicable to the Registrable Securities to be sold on the Holder’s
behalf to the public in such underwritten offering pursuant to such Continuous Offering Registration Statement;  

 

(b) all executive officers
and directors of the Company then holding shares of Class A Common Stock of the Company shall enter into similar agreements;

 

(c) the Company shall
use commercially reasonable efforts to obtain similar agreements from each 5% or greater stockholder of the Company; and

 

(d) the Holder shall
be allowed any concession or proportionate release allowed to any (i) officer, (ii) director or (iii) other 5% or greater stockholder
of the Company that entered into similar agreements.  

 

In order to enforce
the foregoing covenant, the Company shall have the right to place restrictive legends on the certificates representing the Registrable
Securities subject to this Section 6 and to impose stop transfer instructions with respect to the Registrable Securities
and such other shares of Class A Common Stock of each Holder (and the Class A Common Stock or securities of every other Person
subject to the foregoing restriction) until the end of such period.

 

 Section 7.
Miscellaneous.  

 

(a) Termination;
Survival. The rights of each Holder under this Agreement shall terminate on the earlier of (i) the date on which such Holder
no longer holds any Registrable Securities, and (ii) the date that all of the Registrable Securities held by such Holder may be
sold during any three-month period in a single transaction or series of transactions without volume limitations under Rule 144
(or any successor provision) under the Securities Act. Notwithstanding the foregoing, the obligations of the parties under Section
5 hereof and paragraphs (d), (e) and (g) of this Section 7 shall survive the termination of this Agreement.  

 

(b) Expenses.
All Registration Expenses incurred in connection with any Continuous Offering Registration Statement under Section 2 hereof
shall be borne by the Company, whether or not any Continuous Offering Registration Statement related thereto becomes effective.

 

(c) Counterparts.
This Agreement may be executed in one or more counterparts, all of which shall be considered one and the same agreement, and shall
become effective when one or more such counterparts have been signed by each of the parties and delivered to each of the other
parties.  

 

(d) Applicable Law.
This Agreement shall be governed by and construed in accordance with the laws of the State of New York.

 

(e) Waiver Of Jury
Trial; Forum. THE PARTIES HERETO HEREBY IRREVOCABLY AND UNCONDITIONALLY WAIVE TRIAL BY JURY IN ANY LEGAL ACTION OR PROCEEDING
RELATING TO THIS AGREEMENT AND FOR ANY COUNTERCLAIM THEREIN. EACH PARTY SHALL BRING ANY ACTION AGAINST ANY OTHER PARTY IN CONNECTION
WITH THIS AGREEMENT IN A FEDERAL OR STATE COURT LOCATED IN NEW YORK, NEW YORK, CONSENTS TO THE JURISDICTION OF SUCH COURTS, AND
WAIVES ANY RIGHT TO HAVE ANY PROCEEDING TRANSFERRED FROM SUCH COURTS ON THE GROUND OF IMPROPER VENUE OR INCONVENIENT FORUM.

 

    	 

    	 

    

 

(f) Prior Agreement;
Construction; Entire Agreement. This Agreement constitutes the entire agreement of the parties with respect to the subject
matter hereof, and supersedes all prior agreements and understandings between the parties, and all such prior agreements and understandings
are merged herein and shall not survive the execution and delivery hereof. This Agreement supersedes and replaces all provisions
of the Partnership Agreement with respect to the subject matter hereof, including without limitation the provisions of Section
8.05 of the Partnership Agreement.

 

(g) Notices.
All notices or other communications required or permitted to be given hereunder shall be in writing and shall be delivered by hand
or sent, postage prepaid, by registered, certified or express mail or reputable overnight courier service or be telecopier and
shall be deemed given when so delivered by hand or, if mailed, three days after mailing (one Business Day in the case of express
mail or overnight courier service), addressed as follows:

 

	 If to the Holder:	 	To the address set forth beside the respective Holder’s signature
		 	 
	 If to the Company:	 	
        Bluerock Residential Growth
        REIT, Inc.

        712 Fifth Avenue, 9th
        Floor

        New York, New York 10019

        Attention: R. Ramin Kamfar

        Facsimile: 646-278-4220

	 	 	 
	 	 	
        with a copy to:

         

        Kaplan, Voekler, Cunningham & Frank, PLC

        1401 East Cary Street

        Richmond, VA 23219

        Attention: Richard P. Cunningham,
        Jr.

        Facsimile: 804.823.4099

 

(h) Successors and
Assigns. This Agreement shall inure to the benefit of and be binding upon the successors and permitted assigns of each of the
parties thereto. The Company may assign its rights or obligations hereunder to any successor to the Company’s business or
with the prior written consent of Holders of a majority of the then outstanding Registrable Securities, which consent will not
be unreasonably withheld, conditioned or delayed. Notwithstanding the foregoing, no assignee of the Company shall have any of the
rights granted under this Agreement until such assignee shall acknowledge its rights and obligations hereunder by a signed written
agreement pursuant to which such assignee accepts such rights and obligations. A Holder may not assign its rights under this Agreement
without the consent of the Company, which the Company may withhold in its sole discretion.

 

(i) Headings.
Headings are included solely for convenience of reference and if there is any conflict between headings and the text of this Agreement,
the text shall control.

 

(j) Amendments And
Waivers. The provisions of this Agreement may be amended or waived at any time only by the written agreement of the Company
and the Holders of a majority of the Registrable Securities; provided, however, that the provisions of this Agreement
may not be amended or waived without the consent of the Holders of all the Registrable Securities adversely affected by such amendment
or waiver if such amendment or waiver adversely affects a portion of the Registrable Securities but does not so adversely affect
all of the Registrable Securities; provided, further, that the provisions of the preceding provision may not be amended
or waived except in accordance with this sentence. Any waiver, permit, consent or approval of any kind or character on the part
of any such Holders of any provision or condition of this Agreement must be made in writing and shall be effective only to the
extent specifically set forth in writing. Any amendment or waiver effected in accordance with this paragraph shall be binding upon
each Holder of Registrable Securities and the Company.

 

    	 

    	 

    

 

(k) Interpretation;
Absence Of Presumption. For the purposes hereof, (i) words in the singular shall be held to include the plural and vice versa
and words of one gender shall be held to include the other gender as the context requires, (ii) the terms “hereof,”
“herein,” and “herewith” and words of similar import shall, unless otherwise stated, be construed to refer
to this Agreement as a whole and not to any particular provision of this Agreement, and section, paragraph or other references
are to the sections, paragraphs, or other references to this Agreement unless otherwise specified, (iii) the word “including”
and words of similar import when used in this Agreement shall mean “including, without limitation,” unless the context
otherwise requires or unless otherwise specified, (iv) the word “or” shall not be exclusive and (v) provisions shall
apply, when appropriate, to successive events and transactions.

 

 This Agreement
shall be construed without regard to any presumption or rule requiring construction or interpretation against the party drafting
or causing any instruments to be drafted.  

 

(l) Severability.
If any provision of this Agreement shall be or shall be held or deemed by a final, non-appealable order by a competent authority
to be invalid, inoperative or unenforceable, such circumstance shall not have the non-appealable effect of rendering any other
provision or provisions herein contained invalid, inoperative or unenforceable, but this Agreement shall be construed as if such
invalid, inoperative or unenforceable provision had never been contained herein so as to give full force and effect to the remaining
such terms and provisions.

 

(m) Specific Performance;
Other Rights. The parties recognize that various other rights rendered under this Agreement are unique and, accordingly, the
parties shall, in addition to such other remedies as may be available to them at law or in equity, have the right to enforce the
rights under this Agreement by actions for injunctive relief and specific performance.

 

(n) Attorneys’
Fees. Should any party hereto employ attorneys or arbitrators to bring an action or arbitration to enforce any of the provisions
hereof, the non-prevailing party in such action or arbitration shall pay the prevailing party all reasonable costs, charges, and
expenses, including attorneys’ fees and costs, expended or incurred in connection therewith.

 

(o) Further Assurances.
In connection with this Agreement, as well as all transactions and covenants contemplated by this Agreement, each party hereto
agrees to execute and deliver or cause to be executed and delivered such additional documents and instruments and to perform or
cause to be performed such additional acts as may be necessary or appropriate to effectuate, carry out and perform all of the terms,
provisions and conditions of this Agreement and all such transactions and covenants contemplated by this Agreement.

 

(p) No Waiver Of
Breach. The waiver of any breach of any term or condition of this Agreement shall not operate as a waiver of any other breach
of such term or condition or of any other term or condition, nor shall any failure to enforce any provision hereof operate as a
waiver of such provision or of any other provision hereof.

 

[REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]

 

    	 

    	 

    

 

[Signature Page to Registration Rights Agreement]

 

IN WITNESS WHEREOF,
the parties have caused this Registration Rights Agreement to be duly executed as of the date first written above.

 

BLUEROCK RESIDENTIAL GROWTH REIT, INC.,

a Maryland corporation

 

	By:	/s/ Christopher J. Vohs	 
	Name:	Christopher J. Vohs	 
	Its:	Treasurer and Chief Accounting Officer	 

 

HOLDERS:

 

BR-NPT Springing Entity,
LLC,

a Delaware limited liability
company

 

	By:	BR-North Park Towers, LLC	 
	Its:	Manager	 

 

	 	By:	Bluerock Real Estate, L.L.C.
	 	Its:	Manager

 

	 	By:	/s/ Jordan B. Ruddy	 
	 	Name: 	Jordan B. Ruddy	 
	 	Title:	Authorized Signatory	 

 

	ADDRESS:	c/o Bluerock Real Estate L.L.C.	 
	 	712 Fifth Avenue, Ninth Floor	 
	 	New York, New York 10019	 

 

Bluerock Property Management,
LLC,

a Michigan limited liability
company

 

	By:	Bluerock Real Estate, L.L.C.	 
	Its:	Manager	 

 

	 	By:	/s/ Jordan B. Ruddy	 
	 	Name:	Jordan B. Ruddy	 
	 	Its:	Authorized Signatory	 

 

	ADDRESS:	c/o Bluerock Real Estate L.L.C.	 
	 	712 Fifth Avenue, Ninth Floor	 
	 	New York, New York 10019TAX PROTECTION AGREEMENT

 

THIS TAX PROTECTION AGREEMENT
(this “Agreement”) is made and entered into as of April 2, 2014 by and among BLUEROCK RESIDENTIAL GROWTH REIT,
INC., a Maryland corporation (the “REIT”), BLUEROCK RESIDENTIAL HOLDINGS, LP, a Delaware limited partnership
(the “Partnership”), and BR-NPT SPRINGING ENTITY, LLC, a Delaware limited liability company (the “Contributor”).

 

WHEREAS, pursuant to
that certain Contribution Agreement, dated as of March 10, 2014 (the “Contribution Agreement”), the Contributor is
contributing (the “Contribution”), its fee simple ownership in the North Park Towers Apartments to the Partnership
in exchange for $4.1 million in units of limited partnership interest in the Partnership (“Units”) and the assumption
of debt;

 

WHEREAS, it is intended
for federal income tax purposes that the Contribution for Units will be treated as a tax-deferred contribution of assets to the
Partnership for Units under Section 721 of the Code;

 

WHEREAS, in consideration
for the agreement of the Contributor to make the Contribution, the parties desire to enter into this Agreement regarding certain
tax matters as set forth herein; and

 

WHEREAS, the REIT and
the Partnership desire to evidence their agreement regarding certain minimum debt obligations of the Partnership and its subsidiaries.

 

NOW, THEREFORE, in consideration
of the promises and the mutual representations, warranties, covenants and agreements contained herein and in the Contribution Agreement,
the parties hereto hereby agree as follows:

 

ARTICLE 1

DEFINITIONS

 

To the extent not otherwise
defined herein, capitalized terms used in this Agreement have the meanings ascribed to them in the Partnership Agreement (as defined
below).

 

“Accounting
Firm” has the meaning set forth in the Section 3.2.

 

“Agreement”
has the meaning set forth in the Preamble.

 

“Applicable
Rules” has the meaning set forth in Section 2.1(a).

 

“Bottom Guarantee”
has the meaning set forth in Section 2.1.

 

“Closing Date”
means the date on which the Contribution will be effective.

 

“Code”
means the Internal Revenue Code of 1986, as amended.

 

“Contributed
Property” means the North Park Towers Apartments.

 

    	 

    	 

    

 

“Contribution”
has the meaning set forth in the Recitals.

 

“Contribution
Agreement” has the meaning set forth in the Recitals.

 

“Contributor”
has the meaning set forth in the Preamble.

 

“Deficit Restoration
Obligation” means a written obligation by a Protected Partner to restore part or all of its deficit capital account in
the Partnership upon the occurrence of certain events (which written obligation may provide for an indemnity in favor of the REIT
as general partner of the Partnership).

 

“Guaranteed
Amount” means the aggregate amount of each Guaranteed Debt that is guaranteed at any time by Partner Guarantors.

 

“Guaranteed
Debt” means any loans incurred (or assumed) by the Partnership or any of its subsidiaries that are guaranteed by Partner
Guarantors at any time after the Closing Date pursuant to Article 2 hereof.

 

“Indirect
Owner” means, in the case of a Protected Partner that is an entity that is classified as a partnership, disregarded entity
or subchapter S corporation for federal income tax purposes, any person owning an equity interest in such Protected Partner, and
in the case of any Indirect Owner that itself is an entity that is classified as a partnership, disregarded entity or subchapter
S corporation for federal income tax purposes, any person owning an equity interest in such entity.

 

“Minimum Liability
Amount” means, for the Protected Partner, the amount set forth next to the Protected Partner’s name on Schedule
2.1(b) hereto, of which an aggregate of $0 will be guaranteed by the Partner Guarantors pursuant to Section 2.1(a) immediately
after the Closing Date.

 

“Nonrecourse
Liability” has the meaning set forth in Treasury Regulations Section 1.752-1(a)(2).

 

“Partner Guarantors”
means those Protected Partners who have guaranteed any portion of the Guaranteed Debt.

 

“Partnership”
has the meaning set forth in the Preamble.

 

“Partnership
Agreement” means the Amended and Restated Agreement of Limited Partnership of the Partnership, dated as of April 2, 2014,
as amended, and as the same may be further amended in accordance with the terms thereof.

 

“Protected Partner”
means those persons set forth as Protected Partners on Schedule 2.1(a), and any person who (i) acquires Units from a Protected
Partner in a transaction in which gain or loss is not recognized in whole or in part and in which such transferee’s adjusted
basis for federal income tax purposes is determined in whole or in part by reference to the adjusted basis of the Protected Partner
in such Units, (ii) has notified the Partnership of its status as a Protected Partner and (iii) provides all documentation reasonably
requested by the Partnership to verify such status, but excludes any person that ceases to be a Protected Partner pursuant to this
Agreement.

 

    	2

    	 

    

 

“Tax Protection
Period” means the period commencing on the Closing Date and ending at 12:01 AM on April 2, 2020, provided, however,
that with respect to a Protected Partner, the Tax Protection Period shall terminate at such time as such Protected Partner (or
one or more successor Protected Partners) has disposed of 50% or more of the Units received, directly or indirectly, in the Contribution
by such Protected Partner in one or more taxable transactions; provided, however, that for this purpose, any transfer of
Units from the Protected Partner to persons who are, as of the Closing Date, its owners, shall not be considered a disposal.

 

“Units”
has the meaning set forth in the Recitals.

 

Article
2

Allocation of liabilities; Guarantee AND deficit restoration obligation Opportunity;
NOtification of reduction of liabilities; cooperation REGARDING aDDITIONAL allocation of liabilities

 

2.1           Minimum
Liability Allocation.

 

(a)       During the Tax Protection Period, the Partnership will offer
to each Protected Partner the opportunity, in the Partnership’s discretion, either (i) to enter into a “bottom dollar
guarantee” of certain liabilities of the Partnership (substantially in the form set forth in Schedule 2.1(c)) pursuant to
which the lender for the guaranteed liability is required to pursue all other collateral and security for the guaranteed liability
(other than any “bottom dollar guarantees”) prior to seeking to collect on such a guarantee, and the lender shall have
recourse against the guarantor only if, and solely to the extent that, the total amount recovered by the lender with respect to
the guaranteed liability after the lender has exhausted its remedies is less than the aggregate of the guaranteed amounts with
respect to such liability, and the maximum aggregate liability of each partner for all guaranteed liabilities shall be limited
to the amount actually guaranteed by such partner (a “Bottom Guarantee”) or (ii) to enter into a Deficit Restoration
Obligation, in such amount or amounts so as to cause a special allocation of partnership liabilities to such Protected Partner
for purposes of Section 752 of the Code such that the Protected Partner’s allocable share of Partnership liabilities equals
such Protected Partner’s Minimum Liability Amount and to cause a special allocation of partnership liabilities for purposes
of Section 465 of the Code that increases the Protected Partner’s “at risk” amount by an amount equal to such
Protected Partner’s Minimum Liability Amount (determined as of the Closing Date). In order to minimize the need for the Protected
Partner to enter into such Bottom Guarantees or Deficit Restoration Obligations, the Protected Partner will use the additional
method under Treasury Regulations Section 1.752-3(a)(3) to allocate Nonrecourse Liabilities to the Indirect Owners to the maximum
extent possible. In the event that applicable Treasury Regulations (the “Applicable Rules”) are issued which
modify the requirements for bottom dollar guarantees to be effective in causing special allocations of partnership liabilities
to Protected Partners for purposes of Section 752 of the Code and/or Section 465 of the Code, the Partnership, at its option and
in its sole discretion, may agree to work with the Protected Partners together to modify any Bottom Guarantees to the extent necessary
such that they will be effective under the Applicable Rules. The Contributor acknowledges that the U.S. Department of Treasury
has issued proposed Treasury Regulations (79 F.R. 4826 (Jan. 30, 2014)) addressing the allocation of partnership liabilities under
Section 752 of the Code (the “Proposed Regulations”). If the Proposed Regulations are finalized in their current
form, a Protected Partner would not be allocated liabilities solely as a result of entering into a Bottom Guarantee. Even if the
Proposed Regulations are finalized in their current form (or there is any other change in the Applicable Rules), the Partnership
shall have no liability to a Protected Partner if it provides to the Protected Partner the ability to enter into a Bottom Guarantee
in accordance with the terms of this Section 2.1(a).

 

    	3

    	 

    

 

(b)       Following the Tax
Protection Period, the Partnership shall use its commercially reasonable efforts to permit a Protected Partner to enter into a
Bottom Guarantee and/or Deficit Restoration Obligation as described in Section 2.1(a) above if requested by a Protected Partner.
For the avoidance of doubt, following the Tax Protection Period, the notification requirement of Section 2.2 will not apply.

 

2.2           Notification
Requirement. During the Tax Protection Period, the Partnership shall provide prior written notice to a Protected Partner if
the Partnership intends to repay, retire, refinance or otherwise reduce (other than due to scheduled amortization) the amount of
liabilities with respect to the Contributed Property in a manner that would cause an Indirect Owner to recognize gain for federal
income tax purposes as a result of a decrease in the Protected Partner’s share of Partnership liabilities below the Minimum
Liability Amount (determined as of the Closing Date)

 

2.3           Additional
Allocation of Liabilities. If the Partnership provides notice to a Protected Partner pursuant to Section 2.2, the Partnership
shall cooperate with the Protected Partner to arrange an additional allocation of liabilities of the Partnership to the Protected
Partner in such amount or amounts so as to increase the amount of partnership liabilities allocated to such Protected Partner for
purposes of Section 752 of the Code by an amount necessary to prevent the Indirect Owners from recognizing gain for federal income
tax purposes as a result of a decrease in the Protected Partner’s share of Partnership liabilities below the Minimum Liability
Amount (determined as of the Closing Date) as a result of the intended repayment, retirement, refinancing or other reduction (other
than scheduled amortization) in the amount of liabilities with respect to the Contributed Property, including, without limitation,
offering to the Protected Partner the opportunity, in the Partnership’s discretion, either (i) to enter into additional Bottom
Guarantees (substantially in the form set forth in Schedule 2.1(c)) or (ii) to enter into additional Deficit Restoration
Obligations, in either case to the extent of the amount of the Minimum Liability Amount (determined as of the Closing Date).

 

2.4           Deficit
Restoration Obligation. The Partnership will maintain an amount of indebtedness of the Partnership that is considered “recourse”
indebtedness (taking into account all of the facts and circumstances related to the indebtedness, the Partnership and the general
partner) equal to or greater than the sum of the amounts subject to a Deficit Restoration Obligation of all Protected Partners
and other partners in the Partnership. The Deficit Restoration Obligation shall be conclusively presumed to cause the Protected
Partner to be allocated an amount of liabilities equal to the Deficit Restoration Obligation amount of such Protected Partner for
purposes of Sections 465 and 752 of the Code, provided that (1) the Partnership maintains an amount of debt that is considered
“recourse” indebtedness (determined for purposes of Section 752 of the Code and taking into account all of the facts
and circumstances related to the indebtedness, the Partnership and the general partner) equal to the aggregate Deficit Restoration
Obligation amounts of all partners of the Partnership and (2) all other terms and conditions of the Partnership Agreement with
respect to such Deficit Restoration Obligation are met.

 

    	4

    	 

    

 

 

Article
3

Remedies
for Breach

 

3.1           Monetary
Damages. In the event that the Partnership breaches its obligations set forth in Article 2 with respect to a Protected Partner,
the Protected Partner’s sole remedy shall be to receive from the Partnership, and the Partnership shall pay to such Protected
Partner as damages, an amount equal to the aggregate federal, state and local income taxes incurred by the Protected Partner or
an Indirect Owner as a result of the income or gain allocated to, or otherwise recognized by, such Protected Partner with respect
to its Units by reason of such breach, plus an amount equal to the aggregate federal, state, and local income taxes
payable by the Protected Partner or an Indirect Owner as a result of the receipt of any payment required under this Section 3.1.

 

For the avoidance
of doubt, so long as the Partnership provides the opportunities referenced in Sections 2.1 and 2.3 and complies with the notification
requirement of Section 2.2, the Partnership shall have no liability pursuant to this Section 3.1 in the event it is determined
that a Protected Partner has not been specially allocated for purposes of Section 752 of the Code an amount of partnership liabilities
equal to such Protected Partner’s Minimum Liability Amount or is not treated as receiving a special allocation of partnership
liabilities for purposes of Section 465 of the Code that increases such Protected Partner’s “at risk” amount
by an amount equal to such Protected Partner’s Minimum Liability Amount. Furthermore, the Partnership shall have no liability
pursuant to this Section 3.1 if the Partnership merges into another entity treated as a partnership for federal income tax purposes
or the Protected Partner accepts an offer to exchange its Units for equity interests in another entity treated as a partnership
for federal income tax purposes so long as, in either case, such successor entity assumes or agrees to assume the Partnership’s
obligations pursuant to this Agreement.

 

For purposes of computing
the amount of federal, state, and local income taxes required to be paid by a Protected Partner (or Indirect Owner), (i) any deduction
for state income taxes payable as a result thereof actually allowed in computing federal income taxes shall be taken into account,
and (ii) a Protected Partner’s (or Indirect Owner’s) tax liability shall be computed using the highest federal, state
and local marginal income tax rates that would be applicable to such Protected Partner’s (or Indirect Owner’s) taxable
income (taking into account the character and type of such income or gain) for the year with respect to which the taxes must be
paid, without regard to any deductions, losses or credits that may be available to such Protected Partner (or Indirect Owner) that
would reduce or offset its actual taxable income or actual tax liability if such deductions, losses or credits could be utilized
by the Protected Partner (or Indirect Owner) to offset other income, gain or taxes of the Protected Partner (or Indirect Owner),
either in the current year, in earlier years, or in later years).

 

    	5

    	 

    

 

 

3.2           Process
for Determining Damages. If the Partnership has breached or violated any of the covenants set forth in Article 2 (or a Protected
Partner asserts that the Partnership has breached or violated any of the covenants set forth in Article 2), the Partnership and
the Protected Partner (or Indirect Owner) agree to negotiate in good faith to resolve any disagreements regarding any such breach
or violation and the amount of damages, if any, payable to such Protected Partner (or Indirect Owner) under Section 3.1.
If any such disagreement cannot be resolved by the Partnership and such Protected Partner (or Indirect Owner) within sixty (60)
days after the receipt of notice from the Partnership of such breach and the amount of income to be recognized by reason thereof
(or, if applicable, receipt by the Partnership of an assertion by a Protected Partner that the Partnership has breached or violated
any of the covenants set forth in Article 2), the Partnership and the Protected Partner shall jointly retain a nationally recognized
independent public accounting firm (“an Accounting Firm”) to act as an arbitrator to resolve as expeditiously
as possible all points of any such disagreement (including, without limitation, whether a breach of any of the covenants set forth
in Article 2 has occurred and, if so, the amount of damages to which the Protected Partner is entitled as a result thereof, determined
as set forth in Section 3.1). All determinations made by the Accounting Firm with respect to the resolution of any breach
or violation of any of the covenants set forth in Article 2 and the amount of damages payable to the Protected Partner under Section
3.1 shall be final, conclusive and binding on the Partnership and the Protected Partner. The fees and expenses of any Accounting
Firm incurred in connection with any such determination shall be shared equally by the Partnership and the Protected Partner, provided
that if the amount determined by the Accounting Firm to be owed by the Partnership to the Protected Partner is more than five
percent (5%) higher than the amount proposed by the Partnership to be owed to such Protected Partner prior to the submission of
the matter to the Accounting Firm, then all of the fees and expenses of any Accounting Firm incurred in connection with any such
determination shall be paid by the Partnership and if the amount determined by the Accounting Firm to be owed by the Partnership
to the Protected Partner is more than five percent (5%) less than the amount proposed by the Partnership to be owed to such Protected
Partner prior to the submission of the matter to the Accounting Firm, then all of the fees and expenses of any Accounting Firm
incurred in connection with any such determination shall be paid by the Protected Partner.

 

3.3           Required
Notices; Time for Payment. In the event that there has been a breach of Article 2, the Partnership shall provide to each affected
Protected Partner notice of the transaction or event giving rise to such breach not later than at such time as the Partnership
provides to the Protected Partners the IRS Schedule K-1’s to the Partnership’s federal income tax return for the year
of such transaction. All payments required to be made under this Article 3 to any Protected Partner shall be made to such Protected
Partner on or before April 15 of the year following the year in which the gain recognition event giving rise to such payment took
place; provided that, if the Protected Partner is required to make estimated tax payments that would include such
gain (taking into account all available safe harbors), the Partnership shall make a payment to the Protected Partner on or before
the due date for such estimated tax payment and such payment from the Partnership shall be in an amount that corresponds to the
amount of the estimated tax being paid by such Protected Partner at such time as a result of the gain recognition event. In the
event of a payment made after the date required pursuant to this Section 3.3, interest shall accrue on the aggregate amount
required to be paid from such date to the date of actual payment at a rate equal to the “prime rate” of interest, as
published in the Wall Street Journal (or if no longer published there, as announced by Citibank) effective as of the date the payment
is required to be made.

 

    	6

    	 

    

 

Article
4

Section
704(c) Method and Allocations

 

Notwithstanding any
provision of the Partnership Agreement, the Partnership shall use the “traditional method” under Treasury Regulations
Section 1.704-3(b) for purposes of making all allocations under Section 704(c) of the Code with respect to the Contributed
Property.

 

Article
5

Amendment
of this Agreement; Waiver of certain provisions

 

5.1           Amendment.
This Agreement may not be amended, directly or indirectly (including by reason of a merger between either the Partnership or the
REIT and another entity) except by a written instrument signed by the REIT, the Partnership, and each of the Protected Partners
to be subject to such amendment, except that the Partnership may amend Schedules 2.1(a) and 2.1(b) upon a person
becoming a Protected Partner as a result of a transfer of Units.

 

5.2           Waiver.
Notwithstanding the foregoing, upon written request by the Partnership, each Protected Partner, in its sole discretion, may waive
the payment of any damages that is otherwise payable to such Protected Partner pursuant to Article 3 hereof. Such a waiver shall
be effective only if obtained in writing from the affected Protected Partner.

 

Article 6

Miscellaneous

 

6.1           Additional
Actions and Documents. Each of the parties hereto hereby agrees to take or cause to be taken such further actions, to execute,
deliver, and file or cause to be executed, delivered and filed such further documents, and will obtain such consents, as may be
necessary or as may be reasonably requested in order to fully effectuate the purposes, terms and conditions of this Agreement.

 

6.2           Assignment.
No party hereto shall assign its or his rights or obligations under this Agreement, in whole or in part, except by operation of
law, without the prior written consent of the other parties hereto, and any such assignment contrary to the terms hereof shall
be null and void and of no force and effect.

 

6.3           Successors
and Assigns. This Agreement shall be binding upon and shall inure to the benefit of the Protected Partners and their respective
successors and permitted assigns, whether so expressed or not. This Agreement shall be binding upon the REIT, the Partnership,
and any entity that is a direct or indirect successor, whether by merger, transfer, spin-off or otherwise, to all or substantially
all of the assets of either the REIT or the Partnership (or any prior successor thereto as set forth in the preceding portion of
this sentence), provided that none of the foregoing shall result in the release of liability of the REIT and the Partnership
hereunder. The REIT and the Partnership covenant with and for the benefit of the Protected Partners not to undertake any transfer
of all or substantially all of the assets of either entity (whether by merger, transfer, spin-off or otherwise) unless the transferee
has acknowledged in writing and agreed in writing to be bound by this Agreement, provided that the foregoing shall not be
deemed to permit any transaction otherwise prohibited by this Agreement.

 

    	7

    	 

    

 

6.4           Modification;
Waiver. No failure or delay on the part of any party hereto in exercising any power or right hereunder shall operate as a waiver
thereof, nor shall any single or partial exercise of any such right or power, or any abandonment or discontinuance of steps to
enforce such a right or power, preclude any other or further exercise thereof or the exercise of any other right or power. The
rights and remedies of the parties hereunder are cumulative and not exclusive of any rights or remedies which they would otherwise
have. No modification or waiver of any provision of this Agreement, nor consent to any departure by any party therefrom, shall
in any event be effective unless the same shall be in writing, and then such waiver or consent shall be effective only in the specific
instance and for the purpose for which given. No notice to or demand on any party in any case shall entitle such party to any other
or further notice or demand in similar or other circumstances.

 

6.5           Representations
and Warranties Regarding Authority; Noncontravention. Each of the REIT and the Partnership has the requisite corporate or other
(as the case may be) power and authority to enter into this Agreement and to perform its respective obligations hereunder. The
execution and delivery of this Agreement by each of the REIT and the Partnership and the performance of each of its respective
obligations hereunder have been duly authorized by all necessary trust, partnership, or other (as the case may be) action on the
part of each of the REIT and the Partnership. This Agreement has been duly executed and delivered by each of the REIT and the Partnership
and constitutes a valid and binding obligation of each of the REIT and the Partnership, enforceable against each of the REIT and
the Partnership in accordance with its terms, except as such enforcement may be limited by (i) applicable bankruptcy or insolvency
laws (or other laws affecting creditors’ rights generally) or (ii) general principles of equity. The execution and delivery
of this Agreement by each of the REIT and the Partnership do not, and the performance by each of its respective obligations hereunder
will not, conflict with, or result in any violation of (i) the Partnership Agreement or (ii) any other agreement applicable to
the REIT and/or the Partnership, other than, in the case of clause (ii), any such conflicts or violations that would not materially
adversely affect the performance by the Partnership and the REIT of their obligations hereunder.

 

6.6           Captions.
The Article and Section headings contained in this Agreement are inserted for convenience of reference only, shall not be deemed
to be a part of this Agreement for any purpose, and shall not in any way define or affect the meaning, construction or scope of
any of the provisions hereof.

 

6.7           Notices.
All notices and other communications given or made pursuant hereto shall be in writing, shall be deemed to have been duly given
or made as of the date delivered, mailed or transmitted, and shall be effective upon receipt, if delivered personally, mailed by
registered or certified mail (postage prepaid, return receipt requested) to the parties at the following addresses (or at such
other address for a party as shall be specified by like changes of address) or sent by electronic transmission to the telecopier
number specified below:

 

(i)          if
to the Partnership or the REIT, to:

 

    	8

    	 

    

 

	 	c/o BRG Manager
	 	712 Fifth Avenue, 9th Floor
	 	New York, NY  10019
	 	Attention: R. Ramin Kamfar

 

(ii)         if
to a Protected Partner, to the address on file with the Partnership.

 

Each party may designate by notice in writing
a new address to which any notice, demand, request or communication may thereafter be so given, served or sent. Each notice, demand,
request, or communication which shall be hand delivered, sent, mailed, telecopied or telexed in the manner described above, or
which shall be delivered to a telegraph company, shall be deemed sufficiently given, served, sent, received or delivered for all
purposes at such time as it is delivered to the addressee (with the return receipt, the delivery receipt, or (with respect to a
telecopy or telex) the answerback being deemed conclusive, but not exclusive, evidence of such delivery) or at such time as delivery
is refused by the addressee upon presentation.

 

6.8           Counterparts.
This Agreement may be executed in two or more counterparts, all of which shall be considered one and the same agreement and each
of which shall be deemed an original.

 

6.9           Governing
Law. The interpretation and construction of this Agreement, and all matters relating thereto, shall be governed by the laws
of the State of Delaware, without regard to the choice of law provisions thereof.

 

6.10         Consent
to Jurisdiction; Enforceability.

 

6.10.1         This
Agreement and the duties and obligations of the parties hereunder shall be enforceable against any of the parties in the courts
of New York, New York. For such purpose, each party hereto and the Protected Partners hereby irrevocably submits to the nonexclusive
jurisdiction of such courts and agrees that all claims in respect of this Agreement may be heard and determined in any of such
courts.

 

6.10.2         Each
party hereto hereby irrevocably agrees that a final judgment of any of the courts specified above in any action or proceeding relating
to this Agreement shall be conclusive and may be enforced in other jurisdictions by suit on the judgment or in any other manner
provided by law.

 

6.11         Severability.
If any part of any provision of this Agreement shall be invalid or unenforceable in any respect, such part shall be ineffective
to the extent of such invalidity or unenforceability only, without in any way affecting the remaining parts of such provision or
the remaining provisions of this Agreement.

 

6.12         Costs
of Disputes. Except as otherwise expressly set forth in this Agreement, the nonprevailing party in any dispute arising hereunder
shall bear and pay the costs and expenses (including, without limitation, reasonable attorneys’ fees and expenses) incurred
by the prevailing party or parties in connection with resolving such dispute.

    	9

    	 

    

 

6.13         Enforcement
by Protected Partners. The Protected Partners are the beneficiaries of this Agreement and shall be able to enforce this Agreement
as if they were parties to this Agreement.

 

    	10

    	 

    

 

IN WITNESS WHEREOF, the REIT, the Partnership,
and the Contributor have caused this Agreement to be signed by their respective officers, general partners, or delegates thereunto
duly authorized all as of the date first written above.

 

	BLUEROCK RESIDENTIAL GROWTH REIT, INC.
	a Maryland corporation
	 	 	 	 
	 	By:	/s/ Michael L. Konig	 
	 	Name:	Michael L. Konig	 
	 	Title:  	COO, Secretary & General Counsel	 
	 	 	 	 
	BLUEROCK RESIDENTIAL HOLDINGS, L.P.,
	a Delaware limited partnership
	 	 	 	 
	 	By:	Bluerock Residential Growth REIT, Inc.,
	 	 	a Maryland corporation,	 
	 	 	its General Partner	 
	 	 	 	 
	 	 	By:	/s/ Michael L. Konig	 
	 	 	 	Name:  Michael
    L. Konig	 
	 	 	 	Title: COO, Secretary & General Counsel
	 	 	 	 	 
	BR-NPT SPRINGING ENTITY, LLC,
	a Delaware limited liability company
	 	 	 	 
	 	By:	BR-North Park Towers, LLC,	 
	 	 	a Delaware limited liability company, its Manager
	 	 	 	 
	 	By:	/s/ Jordan B. Ruddy	 
	 	Name:	Jordan B. Ruddy	 
	 	Title:  	Authorized Signatory	 

 

    	11

    	 

    

 

SCHEDULES AND EXHIBITS TO THE TAX PROTECTION
AGREEMENT

 

 

	Schedule 2.1(a)	List of Protected Partners
	Schedule 2.1(b)	Minimum Liability Amount
	Schedule 2.1(c)	Form of Guarantee Agreement

 

    	12

    	 

    

Schedule 2.1(a)

 

List of Protected Partners

 

	BR-NPT Springing Entity, LLC

 

    	13

    	 

    

 

Schedule 2.1(b)

 

Minimum Liability Amount

 

	Protected Partner	 	Minimum Liability Amount **/
	BR-NPT Springing Entity, LLC	 	$4,100,000

**/ The estimated amount of liabilities
that must be allocated to the Protected Partner in order to prevent gain recognition by virtue of an Indirect Owner’s “negative
tax capital account” on the closing date of the IPO as determined by the Partnership in its sole discretion.

 

    	14

    	 

    

 

Schedule 2.1(c)

Form of Guaranty 1/

 

GUARANTEE

 

This Guarantee is made and entered into as of the __ day of _______ 20__, by the persons listed on Exhibit
A annexed hereto (the “Guarantors”) for the benefit of the Lender set forth on Exhibit
B annexed hereto and made a part hereof (the “Lender,” which term shall include any person or
entity who hereafter holds the Note (as defined below) in accordance with the terms thereof).

 

 

1/            This Form of the Guarantee Agreement is for
Guaranteed Debt where the following conditions all are applicable:

 

		(i)	there are no other guarantees in effect with respect to such Guaranteed Debt;

 

		(ii)	the collateral securing such Guaranteed Debt is not collateral for any other indebtedness that
is senior to or pari passu with such Guaranteed Debt;

 

		(iii)	no additional guarantees with respect to such Guaranteed Debt will be entered into during the applicable
Tax Protection Period;

 

		(iv)	the lender with respect to such Guaranteed Debt is not the Partnership, any Subsidiary or other
entity in which the Partnership owns a direct or indirect interest, the REIT, any other partner in the Partnership, or any person
related to any partner in the Partnership as determined for purposes of Treasury Regulations Section 1.752-2; and

 

		(v)	none of the REIT, nor any other partner in the Partnership, nor any person related to any partner
in the Partnership as determined for purposes of Treasury Regulations Section 1.752-2 shall have provided, or shall thereafter
provide, collateral for, or otherwise shall have entered, or thereafter shall enter, into a relationship that would cause such
person or entity to be considered to bear risk of loss with respect to such Guaranteed Debt, as determined for purposes of Treasury
Regulations Section 1.752-2.

 

If, and to the extent that, one or
more of these conditions is not applicable, appropriate changes to the attached Form of Guaranty will be required in order to cause
the various conditions set forth in Article 2 of the Tax Protection Agreement to be satisfied.

 

    	15

    	 

    

 

This Guarantee is made and entered into
as of the __ day of _______ 20__, by the persons listed on Exhibit A annexed hereto (the “Guarantors”)
for the benefit of the Lender set forth on Exhibit B annexed hereto and made a part hereof (the “Lender,”
which term shall include any person or entity who hereafter holds the Note (as defined below) in accordance with the terms thereof).

 

RECITALS

 

WHEREAS, the Lender has loaned to the borrower
set forth on Exhibit B (the “Borrower”) the amount set forth opposite such Lender’s
name on Exhibit B, which loan (i) is evidenced by the promissory note described on Exhibit C hereto
(the “Note”), (ii) has a current outstanding balance in the amount set forth on Exhibit B
annexed hereto, and (iii) is secured by a mortgage or deed of trust on the collateral described on Exhibit D annexed
hereto (the “Deed of Trust,” with the property and other assets securing such Deed of Trust referred
to as the “Collateral”);

 

WHEREAS, the Borrower is either Bluerock
Residential Holdings, L.P., a Delaware limited partnership (the “Partnership”), or a subsidiary of the
Partnership in which the Partnership owns a 98% or greater interest in the Partnership;

 

WHEREAS, the Guarantors are limited partners
in the Partnership; and

 

WHEREAS, the Guarantors are executing and
delivering this Guarantee to guarantee a portion of the Borrower’s payments with respect to the Note, subject to and otherwise
in accordance with the terms and conditions hereinafter set forth.

 

NOW THEREFORE, in consideration
of the foregoing recitals and facts and other good and valuable consideration, the receipt and legal sufficiency of which are hereby
acknowledged, each of the Guarantors hereby agree as follows:

 

1.          Guarantee
and Performance of Payment.

 

(a)          The
Guarantors hereby irrevocably and unconditionally guarantee the collection by the Lender of, and hereby agree to pay to the Lender
upon demand (following (1) foreclosure of the Deed of Trust, exercise of the powers of sale thereunder and/or acceptance by
the Lender of a deed to the Collateral in lieu of foreclosure, and (2) the exhaustion of the exercise of any and all remedies available
to the Lender against the Borrower, including, without limitation, realizing upon the assets of the Borrower other than the Collateral
against which the Lender may have recourse), an amount equal to the excess, if any, of the Guaranteed Amount set forth on Exhibit
B over the Lender Proceeds (as hereinafter defined) (which excess is referred to as the “Aggregate Guarantee Liability”).
The amounts payable by each Guarantor in respect of the guarantee obligations hereunder shall be in the same proportion as the
dollar amounts listed next to such Guarantor’s name on Exhibit A attached hereto bears to the total Guaranteed
Amount set forth on Exhibit A, provided that, notwithstanding anything to the contrary contained in this Guarantee,
each Guarantor’s aggregate obligation under this Guarantee shall be limited to the dollar amount set forth on Exhibit
A attached hereto next to such Guarantor’s name. The Guarantors' obligations as set forth in this paragraph 1(a)
are hereinafter referred to as the “Guaranteed Obligations.”

 

    	16

    	 

    

 

(b)          For
the purposes of this Guarantee, the term “Lender Proceeds” shall mean the aggregate of (i) the Foreclosure
Proceeds (as hereinafter defined) plus (ii) all amounts collected by the Lender from the Borrower (other than payments of principal,
interest or other amounts required to be paid by the Borrower to Lender under the terms of the Note that are paid by the Borrower
to the Lender at a time when no default has occurred under the Note and is continuing) or realized by the Lender from the sale
of assets of the Borrower other than the Collateral.

 

(c)          For
the purposes of this Guarantee, the term “Foreclosure Proceeds” shall have the applicable meaning set
forth below with respect to the Collateral:

 

		1.	If at least one bona fide third party unrelated to the Lender (and including, without limitation,
any of the Guarantors) bids for such Collateral at a sale thereof, conducted upon foreclosure of the related Deed of Trust or exercise
of the power of sale thereunder, Foreclosure Proceeds shall mean the highest amount bid for such Collateral by the party that acquires
title thereto (directly or through a nominee) at or pursuant to such sale. For the purposes of determining such highest bid, amounts
bid for the Collateral by the Lender shall be taken into account notwithstanding the fact that such bids may constitute credit
bids which offset against the amount due to the Lender under the Note.

 

		2.	If there is no such unrelated third-party at such sale of the Collateral so that the only bidder
at such sale is the Lender or its designee, the Foreclosure Proceeds shall be deemed to be fair market value (the “Fair
Market Value”) of the Collateral as of the date of the foreclosure sale, as such Fair Market Value shall be mutually
agreed upon by the Lender and the Guarantor or determined pursuant to subparagraph 1(d).

 

		3.	If the Lender receives and accepts a deed to the Collateral in lieu of foreclosure in partial satisfaction
of the Borrower's obligations under the Note, the Foreclosure Proceeds shall be deemed to be the Fair Market Value of such Collateral
as of the date of delivery of the deed-in-lieu of foreclosure, as such Fair Market Value shall be mutually agreed upon by the Lender
and the Guarantor or determined pursuant to subparagraph 1(d).

 

    	17

    	 

    

 

(d)          Fair
Market Value of the Collateral (or any item thereof) shall be the price at which a willing seller not compelled to sell would sell
such Collateral, and a willing buyer not compelled to buy would purchase such Collateral, free and clear of all mortgages but subject
to all leases and reciprocal easements and operating agreements. If the Lender and the Guarantor are unable to agree upon the Fair
Market Value of any Collateral in accordance with subparagraphs 1(c)2. or 3. above, as applicable, within twenty (20) days after
the date of the foreclosure sale or the delivery of the deed-in-lieu of foreclosure, as applicable, relating to such Collateral,
either party may have the Fair Market Value of such Collateral determined by appraisal by appointing an appraiser having the qualifications
set forth below to determine the same and by notifying the other party of such appointment within twenty (20) days after the expiration
of such twenty (20) day period. If the other party shall fail to notify the first party, within twenty (20) days after its receipt
of notice of the appointment by the first party, of the appointment by the other party of an appraiser having the qualifications
set forth below, the appraiser appointed by the first party shall alone make the determination of such Fair Market Value. Appraisers
appointed by the parties shall be members of the Appraisal Institute (MAI) and shall have at least ten years’ experience
in the valuation of properties similar to the Collateral being valued in the greater metropolitan area in which such Collateral
is located. If each party shall appoint an appraiser having the aforesaid qualifications and if such appraisers cannot, within
thirty (30) days after the appointment of the second appraiser, agree upon the determination hereinabove required, then they shall
select a third appraiser which third appraiser shall have the aforesaid qualifications, and if they fail so to do within forty
(40) days after the appointment of the second appraiser they shall notify the parties hereto, and either party shall thereafter
have the right, on notice to the other, to apply for the appointment of a third appraiser to the chapter of the American Arbitration
Association or its successor organization located in the metropolitan area in which the Collateral is located or to which the Collateral
is proximate or if no such chapter is located in such metropolitan area, in the metropolitan area closest to the Collateral in
which such a chapter is located. Each appraiser shall render its decision as to the Fair Market Value of the Collateral in question
within thirty (30) days after the appointment of the third appraiser and shall furnish a copy thereof to the Lender and the Guarantor.
The Fair Market Value of the Collateral shall then be calculated as the average of (i) the Fair Market Value determined by the
third appraiser and (ii) whichever of the Fair Market Values determined by the first two appraisers is closer to the Fair Market
Value determined by the third appraiser; provided, however, that if the Fair Market Value determined by the third
appraiser is higher or lower than both Fair Market Values determined by the first two appraisers, such Fair Market Value determined
by the third appraiser shall be disregarded and the Fair Market Value of the Collateral shall then be calculated as the average
of the Fair Market Value determined by the first two appraisers. The Fair Market Value of a Property, as so determined, shall be
binding and conclusive upon the Lender and the Guarantors. Guarantors shall bear the cost of its own appraiser and, subject to
subparagraph 1(e), shall bear all reasonable costs of appointing, and the expenses of, any other appraiser appointed pursuant to
this subparagraph (1)(d).

 

(e)          Notwithstanding
anything in the preceding subparagraphs of this paragraph 1, (i) in no event shall the aggregate amount required to be
paid pursuant to this Guarantee by the Guarantors as a group with respect to all defaults under the Note and the Deed of Trust
securing the obligations thereunder exceed the Guaranteed Amount set forth on Exhibit B hereto, and (ii) the
aggregate obligation of each Guarantor hereunder with respect to the Guaranteed Obligation shall be limited to the lesser of (I) the
product of (w) the Individual Guarantee Percentage for such Guarantor set forth on Exhibit A hereto multiplied
by (x) the Guaranteed Amount, or (II) the product of (y) such Guarantor’s Individual Guarantee Percentage
multiplied by (z) the Aggregate Guarantee Liability.

 

(f)          In
confirmation of the foregoing, and without limitation, the Lender must first exhaust all of its rights and remedies against all
property of the Borrower as to which the Lender has (or may have) a right of recourse, including, without limitation, the institution
and prosecution to completion of appropriate foreclosure proceedings under the Deed of Trust, before exercising any right or remedy
or making any claim, under this Guarantee.

 

    	18

    	 

    

 

(g)          The
obligations under this Guarantee shall be personal to each Guarantor and shall not be affected by any transfer of all or any part
of a Guarantor’s interests in the Partnership; provided, however, that if a Guarantor has disposed of all of its equity interests
in the Partnership, the obligations of such Guarantor under this Guarantee shall terminate 12 months after the date of such disposition
(the “Termination Date”) provided (i) the Guarantor notifies the Lender that it is terminating its obligations under
this Guarantee as of the Termination Date and (ii) the fair market value of the Collateral exceeds the outstanding balance of the
Note, including accrued and unpaid interest, as of the Termination Date. Further, no Guarantor shall have the right to recover
from the Borrower any amounts such Guarantor pays pursuant to this Guarantee (except and only to the extent that the amount paid
to the Lender by such Guarantor exceeds the amount required to be paid by such Guarantor under the terms of this Guarantee).

 

(h)          The
obligations of any Guarantor who is an individual as a Guarantor hereunder shall terminate with respect to such Guarantor one week
after the death of such Guarantor if, as a result of the death of such Guarantor, all property held by the Guarantor on the date
of death would have a basis for federal income tax purposes equal to the fair market value of such property on such date (unless
a later date were to be elected by the executor of the Guarantor's estate in accordance with the applicable provisions of the Internal
Revenue Code).

 

2.          Intent
to Benefit Lender. This Guarantee is expressly for the benefit of the Lender. The Guarantors intend that the Lender shall have
the right to enforce the obligations of the Guarantors hereunder separately and independently of the Borrower, subject to the provisions
of paragraph 1 hereof, without any requirement whatsoever of resort by the Lender to any other party. The Lender's rights to enforce
the obligations of the Guarantors hereunder are material elements of this Guarantee. This Guarantee shall not be modified, amended
or terminated (other than as specifically provided herein) without the written consent of the Lender. The Borrower shall furnish
a copy of this Guarantee to the Lender contemporaneously with its execution.

 

3.          Waivers.
Each Guarantor intends to bear the ultimate economic responsibility for the payment hereof of the Guaranteed Obligations to the
extent set forth in Paragraph 1 above. Pursuant to such intent:

 

(a)          Except
as expressly set forth in Paragraph 1 above, each Guarantor expressly waives any right (pursuant to any law, rule, arrangement
or relationship) to compel the Lender, or any subsequent holder of the Note or any beneficiary of the Deed of Trust to sue or enforce
payment thereof or pursue any other remedy in the power of the Borrower, the Lender or any subsequent holder of the Note or any
beneficiary of the Deed of Trust whatsoever, and failure of the Borrower or the Lender or any subsequent holder of the Note or
any beneficiary of the Deed of Trust to do so shall not exonerate, release or discharge a Guarantor from its absolute unconditional
obligations under this Guarantee. Each Guarantor hereby binds and obligates itself, and its permitted successors and assignees,
for performance of the Guaranteed Obligations according to the terms hereof, whether or not the Guaranteed Obligations or any portion
thereof are valid now or hereafter enforceable against the Borrower or shall have been incurred in compliance with any of the conditions
applicable thereto, subject, however, in all respects to the limitations set forth in paragraph 1.

 

    	19

    	 

    

 

(b)          Each
Guarantor expressly waives any right (pursuant to any law, rule, arrangement, or relationship) to compel any other person (including,
but not limited to, the Borrower, the Partnership, any subsidiary of the Partnership or the Borrower, or any other partner or affiliate
of the Partnership or the Borrower) to reimburse or indemnify such Guarantor for all or any portion of amounts paid by such Guarantor
pursuant to this Guarantee to the extent such amounts do not exceed the amounts required to be paid by such Guarantor pursuant
to paragraph 1 hereof (taking into account the limitations set forth therein).

 

(c)          Except
as expressly set forth in Paragraph 1 above, if and only to the extent that the Borrower has made similar waivers under the Note
or the Deed of Trust, each Guarantor expressly waives: (i) the defense of the statute of limitations in any action hereunder or
for the collection or performance of the Note or the Deed of Trust; (ii) any defense that may arise by reason of: the incapacity,
or lack of authority of the Borrower, the revocation or repudiation hereof by such Guarantor, the revocation or repudiation of
the Note or the Deed of Trust by the Borrower, the failure of the Lender to file or enforce a claim against the estate (either
in administration, bankruptcy or any other proceeding) of the Borrower; the unenforceability in whole or in part of the Note, the
Deed of Trust or any other document or instrument related thereto; the Lender's election, in any proceeding by or against the Borrower
under the federal Bankruptcy Code, of the application of Section 1111(b)(2) of the federal Bankruptcy Code; or any borrowing or
grant of a security interest under Section 364 of the federal Bankruptcy Code; (iii) presentment, demand for payment, protest,
notice of discharge, notice of acceptance of this Guarantee or occurrence of, or any default in connection with, the Note or the
Deed of Trust, and indulgences and notices of any other kind whatsoever, including, without limitation, notice of the disposition
of any collateral for the Note; (iv) any defense based upon an election of remedies (including, if available, an election to proceed
by non-judicial foreclosure) or other action or omission by the Lender or any other person or entity which destroys or otherwise
impairs any indemnification, contribution or subrogation rights of such Guarantor or the right of such Guarantor, if any, to proceed
against the Borrower for reimbursement, or any combination thereof; (v) subject to Paragraph 4 below, any defense based upon any
taking, modification or release of any collateral or guarantees for the Note, or any failure to create or perfect any security
interest in, or the taking of or failure to take any other action with respect to any collateral securing payment or performance
of the Note; (vi) any rights or defenses based upon any right to offset or claimed offset by such Guarantor against any indebtedness
or obligation now or hereafter owed to such Guarantor by the Borrower; or (vii) any rights or defenses based upon any rights or
defenses of the Borrower to the Note or the Deed of Trust (including, without limitation, the failure or value of consideration,
any statute of limitations, accord and satisfaction, and the insolvency of the Borrower); it being intended, except as expressly
set forth in Paragraph 1 above, that such Guarantor shall remain liable hereunder, to the extent set forth herein, notwithstanding
any act, omission or thing which might otherwise operate as a legal or equitable discharge of any of such Guarantor or of the Borrower.

 

    	20

    	 

    

 

4.          Amendment
of Note and Deed of Trust. Without in any manner limiting the generality of the foregoing, the Lender or any subsequent holder
of the Note or beneficiary of the Deed of Trust may, from time to time, without notice to or consent of the Guarantors, agree to
any amendment, waiver, modification or alteration of the Note or the Deed of Trust relating to the Borrower and its rights and
obligations thereunder (including, without limitation, renewal, waiver or variation of the maturity of the indebtedness evidenced
by the Note, increase or reduction of the rate of interest payable under the Note, release, substitution or addition of any Guarantor
or endorser and acceptance or release of any security for the Note), it being understood and agreed by the Lender, however, that
the Guarantor's obligations hereunder are subject, in all events, to the limitations set forth in Paragraph 1; provided that
(i) in the event that the Lender consents to the release of any Collateral securing the Note pursuant to the Deed of Trust, the
Guaranteed Amount shall be reduced by the Fair Market Value of such Collateral on the date of such release (determined as set forth
in Section 1(d)); and (ii) upon any material change to the Note or the Deed of Trust, including, without limitation, the maturity
date or the interest rate of the Note, or upon any release or substitution of any Collateral securing the Note, within thirty (30)
days of any Guarantor's receipt of actual notice of such event, subject to the following sentence, such Guarantor may elect to
terminate such Guarantor's obligations under this Guarantee by written notice to the Lender. Such termination shall take effect
on the 31st day following such actual notice, provided that no default under the Guaranteed Obligation has occurred
and is then continuing.

.

5.          Termination
of Guarantee. Subject to Paragraph 4, this Guarantee is irrevocable as to any and all of the Guaranteed Obligations.

 

6.          Independent
Obligations. Except as expressly set forth in Paragraph 1, the obligations of each Guarantor hereunder are independent of the
obligations of the Borrower, and a separate action or actions may be brought by a Lender against the Guarantors, whether or not
actions are brought against the Borrower. Each Guarantor expressly waives any and all rights of subrogation, reimbursement, indemnity,
exoneration, contribution or any other claim which such Guarantor may now or hereafter have against the Borrower, or any other
person directly or contingently liable for the payment or performance of the Note and the Deed of Trust arising from the existence
or performance of this Guarantee (including, but not limited to, the Partnership, Bluerock Residential Growth REIT, Inc. or any
other partner of the Partnership) (except and only to the extent that a Guarantor makes a payment to the Lender in excess of the
amount required to be paid under paragraph 1 and the limitations set forth therein).

 

7.          Net
Worth Representation. The Guarantor hereby represents and warrants that it has sufficient net worth (excluding the value of
its equity interests in the Partnership) to satisfy the Aggregate Guarantee Liability as of the date hereof and hereby agrees to
maintain a sufficient net worth to satisfy the Aggregate Guarantee Liability as of any relevant date of determination until the
obligations of Borrower for principal and interest now or hereafter existing under the Guaranteed Obligations shall have been paid.

 

8.          Understanding
With Respect to Waivers. Each Guarantor warrants and represents that each of the waivers set forth above are made with full
knowledge of their significance and consequences, and that under the circumstances, the waivers are reasonable and not contrary
to public policy or law. If any of said waivers are determined to be contrary to any applicable law or public policy, such waiver
shall be effective only to the maximum extent permitted by law.

 

9.          No
Assignment. No Guarantor shall be entitled to assign his or her rights or obligations under this Guarantee to any other person
without the written consent of the Lender.

 

10.         Entire
Agreement. The parties agree that this Guarantee contains the entire understanding and agreement between them with respect
to the subject matter hereof and cannot be amended, modified or superseded, except by an agreement in writing signed by the parties.

 

    	21

    	 

    

 

 

11.         Notices.
Any notice given pursuant to this Guarantee shall be in writing and shall be deemed given when delivered personally, or sent by
registered or certified mail, postage prepaid, as follows:

 

If to the Partnership:

 

	c/o BRG Manager
	712 Fifth Avenue, 9th Floor
	New York, NY  10019
	Attention: R. Ramin Kamfar

 

or to such other address with respect to
which notice is subsequently provided in the manner set forth above; and

 

If to a Guarantor, to the address set forth
on Exhibit A hereto, or to such other address with respect to which notice is subsequently provided in the manner
set forth above.

 

12.         Applicable
Law. This Guarantee shall be governed by, interpreted under and construed in accordance with the laws of the State of Delaware
without reference to its choice of law provisions.

 

13.         Consent
to Jurisdiction; Enforceability

 

(a) This Guarantee and the duties and obligations
of the parties hereto shall be enforceable against each Guarantor in the courts of New York, New York. For such purpose, each Guarantor
hereby irrevocably submits to the nonexclusive jurisdiction of such courts and agrees that all claims in respect of this Guarantee
may be heard and determined in any of such courts.

 

(b) Each Guarantor hereby irrevocably agrees
that a final judgment of any of the courts specified above in any action or proceeding relating to this Guarantee shall be conclusive
and may be enforced in other jurisdictions by suit on the judgment or in any other manner provided by law.

 

14.         Condition
of Borrower. Each Guarantor is fully aware of the financial condition of the Borrower and is executing and delivering this
Guarantee based solely upon its own independent investigation of all matters pertinent hereto and is not relying in any manner
upon any representation or statement of the Lender or the Borrower. Each Guarantor represents and warrants that it is in a position
to obtain, and hereby assumes full responsibility for obtaining, any additional information concerning the Borrower's financial
conditions and any other matter pertinent hereto as it may desire, and it is not relying upon or expecting the Lender to furnish
to it any information now or hereafter in the Lender’s possession concerning the same. By executing this Guarantee, each
Guarantor knowingly accepts the full range of risks encompassed within a contract of this type, which risks it acknowledges.

 

    	22

    	 

    

 

15.         Expenses.         Each
Guarantor agrees that, promptly after receiving Lender’s notice therefor, such Guarantor shall reimburse Lender, subject
to the limitation set forth in subparagraph 1(e) and to the extent that such reimbursement is not made by Borrower, for all reasonable
expenses (including, without limitation, reasonable attorneys fees and disbursements) incurred by Lender in connection with the
collection of the Guaranteed Obligations or any portion thereof or with the enforcement of this Guarantee.

 

    	23

    	 

    

 

IN WITNESS WHEREOF, the undersigned Guarantors
set forth on Exhibit A hereto have executed this Guarantee as of the date first set forth above.

 

	 	GUARANTORS SET FORTH ON EXHIBIT A HERETO:
	 	 
	 	By:	 
	 	 	 
	 	By:	 
	 	 	 
	 	By:	 
	 	 	 
	 	By: 	 
	 	 	 
	 	By:	 

 

  

    	24

    	 

    

 

Exhibit A to Guarantee

 

	Name and Address of Partner Guarantors	 	Guaranteed Amount	 	 
	Guarantors, as a group	 	
        $

         
	 	 
	Individual Guarantors:	 	 	 	
        Individual

        Guarantee

        Percentage

 

    	25

    	 

    

 

Exhibit B to Guarantee

 

	Name of Lender	Name of Borrower	Date of and

Principal Amount

of Loan	Debt Balance as of

__/__/__	Guaranteed

Amount
	 	 	 	 	 

 

    	26

    	 

    

 

Exhibit C to Guarantee

 

Summary of Principal Terms of Note [or
attach copy of Note]

 

    	27

    	 

    

 

Exhibit
D to Guarantee

 

Identification of Deed of
Trust and

Brief Summary Description of Collateral

 

    	28

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