Exhibit 1.1
EXECUTION COPY
2,000,000 Shares
BLUEROCK RESIDENTIAL GROWTH REIT, INC.
8.250% Series A Cumulative Redeemable
Preferred Stock
UNDERWRITING AGREEMENT
April 20, 2016
Wunderlich Securities, Inc.
1530 Wilson Blvd.
Suite 430
Arlington, VA 22209
Compass Point Research & Trading, LLC
1055 Thomas Jefferson Street N.W.
Suite 303
Washington, DC 20007
As Representatives of the Several Underwriters
Named in Schedule A Hereto
Dear Ladies and Gentlemen:
Bluerock Residential
Growth REIT, Inc., a Maryland corporation (the “Company”), together with Bluerock Residential Holdings, L.P.,
a Delaware limited partnership for which the Company is the sole general partner (the “Operating Partnership”
and together with the Company, the “Transaction Entities”) and BRG Manager, LLC, a Delaware limited liability
company (the “Manager”), agrees with Wunderlich Securities, Inc. and Compass Point Research & Trading, LLC,
as the representatives (the “Representatives”) of the several Underwriters named in Schedule A hereto
(collectively, the “Underwriters”) to issue and sell to the several Underwriters 2,000,000 shares (the
“Firm Shares”) of its 8.250% Series A Cumulative Redeemable Preferred Stock, par value $0.01 per share,
of the Company (the “Series A Preferred Stock”), and also proposes to issue and sell to the Underwriters, at
the option of the Underwriters, an aggregate of not more than 300,000 additional shares of its Series A Preferred Stock
(the “Optional Shares”) as set forth below. The Firm Shares and the Optional Shares are herein collectively
called the “Offered Shares.” Pursuant to the Second Amended and Restated Agreement of Limited Partnership of
the Operating Partnership (the “OP Agreement”), as amended by that First Amendment to the Second Amended and
Restated Agreement of Limited Partnership of the Operating Partnership, as further amended by that Second Amendment to the Second
Amended and Restated Agreement of Limited Partnership of the Operating Partnership, as further amended by that Third Amendment
to the Second Amended and Restated Agreement of Limited Partnership of the Operating Partnership and as further amended by the
Fourth Amendment to the Second Amended and Restated Agreement of Limited Partnership of the Operating Partnership, upon receipt
of the net proceeds of (a) the sale of the Firm Shares on the First Closing Date (as defined below) and (b) any and all Optional
Shares on each Optional Closing Date (as defined below), the Company, through its wholly-owned subsidiary, Bluerock REIT Holdings,
LLC, a Delaware limited liability company (“Holdings LLC”), will contribute such net proceeds to the Operating
Partnership in exchange for a number of 8.250% Series A Cumulative Redeemable Preferred Units of partnership interest in
the Operating Partnership (the “Series A Preferred OP Units”) that is equivalent to the number of Firm Shares
and Optional Shares sold to the Underwriters (the “Company Preferred OP Units”).
| 1. | Representations and Warranties of the Transaction Entities. |
| (a) | Representations and Warranties. The Transaction Entities, jointly and severally, represent
and warrant to, and agree with, the several Underwriters that: |
| (i) | Filing and Effectiveness of Registration Statement; Certain Defined Terms. The Company has
filed with the Commission a registration statement on Form S-3 (No. 333-208956) covering the registration of the Offered Shares
under the Act, including a base prospectus (the “Base Prospectus”). Such registration statement, as amended,
including the financial statements, exhibits and schedules thereto, in the form in which it became effective under the Act, including
all documents incorporated or deemed to be incorporated by reference therein and any information deemed to be a part thereof at
the time of effectiveness pursuant to Rule 430B under the Act, shall be referred to as the “Registration Statement.”
Any registration statement filed by the Company pursuant to Rule 462(b) under the Act in connection with the offer and sale of
the Offered Shares is called the “Rule 462(b) Registration Statement,” and from and after the date and time
of filing of any such Rule 462(b) Registration Statement the term “Registration Statement” shall include the Rule 462(b)
Registration Statement. The preliminary prospectus supplement dated April 19, 2016 describing
the Offered Shares and the offering thereof (the “Preliminary Prospectus Supplement”), together with the Base
Prospectus, is called the “Preliminary Prospectus,” and the Preliminary Prospectus and any other prospectus
supplement to the Base Prospectus in preliminary form that describes the Offered Shares and the offering thereof and is used prior
to the filing of the Prospectus (as defined below), together with the Base Prospectus, is called a “preliminary prospectus.”
As used herein, the term “Prospectus” shall mean the final prospectus supplement to the Base Prospectus dated
the date hereof that describes the Offered Shares and the offering thereof (the “Final Prospectus Supplement”),
together with the Base Prospectus, in the form first used by the Underwriters to confirm sales of the Offered Shares or in the
form first made available to the Underwriters by the Company to meet requests of purchasers pursuant to Rule 173 under the Act.
References herein to the Preliminary Prospectus, any preliminary prospectus and the Prospectus shall refer to both the prospectus
supplement and the Base Prospectus components of such prospectus, including all documents incorporated or deemed to be incorporated
by reference therein. |
The Registration Statement has
been declared effective under the Act. The Offered Shares all have been duly registered under the Act pursuant to the Registration
Statement. The Company has complied, to the Commission’s satisfaction, with all requests of the Commission for additional
or supplemental information, if any. No stop order suspending the effectiveness of or use of the Registration Statement has been
issued under the Act, and no order preventing or suspending the use of any preliminary prospectus or the Prospectus has been issued
and no proceedings for any such purposes have been instituted and are pending or, to the knowledge of the Company, are contemplated
by the Commission, and any request on the part of the Commission for additional information from the Company in connection with
the Registration Statement has been complied with. The Company meets the requirements for use of Form S-3 under the Act. The documents
incorporated or deemed to be incorporated by reference in the Registration Statement, the General Disclosure Package (as defined
below) and the Prospectus, at the time they were or hereafter are filed with the Commission, or became effective under the Exchange
Act, as the case may be, complied and will comply (as applicable) in all material respects with the requirements of the Exchange
Act.
For purposes of this Agreement:
“430B Information,”
with respect to any registration statement, means information included in a prospectus and retroactively deemed to be a part of
such registration statement pursuant to Rule 430B(b).
“Act” means
the Securities Act of 1933, as amended.
“Applicable Time”
means 8:30 A.M. (Eastern Time) on the date of this Agreement.
“Closing Date”
has the meaning defined in Section 3 hereof.
“Commission”
means the Securities and Exchange Commission.
“Effective Time”
with respect to the Registration Statement, means the date and time as of which such Registration Statement was declared effective
by the Commission.
“Environmental Law”
means any federal, state or local law, statute, ordinance, rule, regulation, order, decree, judgment, injunction, permit, license,
authorization or other binding requirement, or common law, relating to health, safety or the protection, cleanup or restoration
of the environment or natural resources, including those relating to the distribution, processing, generation, treatment, storage,
disposal, transportation, other handling or release or threatened release of Hazardous Materials.
“Exchange Act”
means the Securities Exchange Act of 1934, as amended.
“General Disclosure
Package” means the Preliminary Prospectus, as amended or supplemented immediately prior to the Applicable Time, together
with the information and free writing prospectuses, if any, identified in Schedule B hereto.
“General Use Issuer
Free Writing Prospectus” means any Issuer Free Writing Prospectus that is intended for general distribution to prospective
investors (other than a “bona fide electronic road show”, defined in Rule 433 (the “Bona Fide Electronic Road
Show”)), as evidenced by its being so specified in Schedule B to this Agreement.
“Hazardous Materials
” means any material (including, without limitation, pollutants, contaminants, hazardous or toxic substances or wastes),
the presence of which in the environment is prohibited, regulated or serves as the basis of liability as defined, listed or regulated
by any Environmental Law.
“Issuer Free Writing
Prospectus” means any “issuer free writing prospectus,” as defined in Rule 433, relating to the Offered Shares,
including, without limitation, any “free writing prospectus” (as defined in Rule 405) relating to the Offered Shares
that is (i) required to be filed with the Commission by the Company, (ii) a road show that is a written communication within the
meaning of Rule 433(d)(8)(i), whether or not required to be filed with the Commission, or (iii) exempt from filing with the Commission
pursuant to Rule 433(d)(5)(i) because it contains a description of the Offered Shares or of the offering of the Offered Shares
that does not reflect the final terms, in each case in the form filed or required to be filed with the Commission or, if not required
to be filed, in the form retained in the Company’s records pursuant to Rule 433(g).
“Limited
Use Issuer Free Writing Prospectus” means any Issuer Free Writing Prospectus that is not a General Use Issuer Free Writing
Prospectus.
A “Registration Statement”
without reference to a time means such Registration Statement as of its Effective Time. For purposes of the foregoing definitions,
430B Information with respect to a Registration Statement shall be considered to be included in such Registration Statement as
of the time specified in Rule 430B.
“LTIP Units”
means the special units of partnership interest of the Operating Partnership having the rights, preferences and other privileges
designated in Section 4.04 and elsewhere in the OP Agreement.
“Rules and Regulations”
means the rules and regulations of the Commission.
“Securities Laws”
means, collectively, the Sarbanes-Oxley Act of 2002 (“Sarbanes-Oxley”), the Act, the Exchange Act, the Rules
and Regulations, the auditing principles, rules, standards and practices applicable to auditors of “issuers” (as defined
in Sarbanes-Oxley) promulgated or approved by the Public Company Accounting Oversight Board and, as applicable, the rules of the
NYSE MKT, LLC (the “NYSE MKT”) (“Exchange Rules”).
“Statutory
Prospectus” means the Base Prospectus, as amended and supplemented immediately prior to the Applicable Time, including
any document incorporated by reference therein and any prospectus supplement deemed to be a part thereof. For purposes of this
definition, Rule 430B Information contained in a form of prospectus that is deemed retroactively to be a part of the Registration
Statement shall be considered to be included in the Statutory Prospectus as of the actual time that such form of prospectus is
filed with the Commission pursuant to Rule 424(b) under the Act.
“Subsidiary”
or “Subsidiaries” means each of the entities listed on Schedule D, which i) comprise all of the subsidiaries
of the Transaction Entities, including the entities in which the Operating Partnership owns, directly or indirectly, all of the
membership interests; ii) hold assets and iii) such omitted entities are considered in the aggregate as a single subsidiary, would
not constitute a “significant subsidiary” within the meaning of Rule 1-02(w) of Regulation S-X.
Unless otherwise specified, a
reference to a “rule” or “Rule” is to the indicated rule under the Act.
| (ii) | Compliance with Securities Act Requirements. (A) (1) At
the Effective Time, (2) on the date of this Agreement and (3) on each Closing Date, the Registration Statement or any post-effective
amendment thereto complied and will comply in all respects to the requirements of the Act and the Rules and Regulations thereunder,
and did not, does not and will not include any untrue statement of a material fact or omitted, omits or will omit to state any
material fact required to be stated therein or necessary to make the statements therein, in the light of the circumstances under
which they were made, not misleading; (B) the Preliminary Prospectus, on any date of use, complied in all material respects with
the Act (including without limitation Section 10 of the Act) and at no time during the period that begins on the date of the Preliminary
Prospectus and the date on which the Preliminary Prospectus was filed with the Commission and ends immediately prior to the execution
of this Agreement did the Preliminary Prospectus contain any untrue statement of a material fact or omit to state a material fact
necessary in order to make the statements therein, in light of the circumstances under which they were made, not misleading; and
(C) the Prospectus and each amendment or supplement thereto, as of their respective issue dates, complied and will comply in all
material respects with the Act and the Rules and Regulations thereunder, and neither the Prospectus nor any amendment or supplement
thereto (including any prospectus wrapper), as of its issue date, at the time of any filing with the Commission pursuant to Rule
424(b) and at each Closing Date, included, includes or will include an untrue statement of a material fact or omitted, omits or
will omit to state a material fact necessary in order to make the statements therein, in light of the circumstances under which
they were made, not misleading. The representations and warranties contained herein do not apply to statements in or omissions
from any document discussed herein based upon written information furnished to the Company by any Underwriter through the Representatives
specifically for use therein, it being understood and agreed that such information is only that described as such in Section
8(b) hereof (collectively, the “Underwriter Information”). The Preliminary Prospectus and the Prospectus
delivered to the Underwriters for use in connection with the offering of the Series A Preferred
Stock were or will be substantially identical to the electronically transmitted copies thereof filed with the Commission pursuant
to EDGAR, except to the extent permitted by Regulation S-T. |
| (iii) | General Disclosure Package. As of the Applicable Time and on each Closing Date, none of
(A) the General Disclosure Package, (B) any individual Limited Use Issuer Free Writing Prospectus, when considered together with
the General Disclosure Package and/or (C) each road show, if any, when considered together with, and as may be corrected by, the
General Disclosure Package, included, includes or will include any untrue statement of a material fact or omitted, omits or will
omit to state any material fact necessary in order to make the statements therein, in the light of the circumstances under which
they were made, not misleading. The preceding sentence does not apply to statements in or omissions from any Statutory Prospectus,
Issuer Free Writing Prospectus or road show made in reliance upon and in conformity with the Underwriter Information. |
| (iv) | Issuer Free Writing Prospectuses. Each Issuer Free Writing
Prospectus, as of its issue date and, to the extent not superseded or modified, at all subsequent times through the completion
of the public offer and sale of the Offered Shares did not, does not and will not include any information that conflicted, conflicts
or will conflict with the information then contained in the Registration Statement, the Prospectus or any preliminary prospectus.
Each Issuer Free Writing Prospectus conformed, conforms or will conform in all respects to the requirements of the Act and the
Rules and Regulations thereunder. The Company has not made any offer relating to the Offered Shares that would constitute an Issuer
Free Writing Prospectus without the prior written consent of the Representatives; provided that such consent is deemed to have
been given with respect to each Issuer Free Writing Prospectus identified on Schedule B to this Agreement. The Company (A)
has filed or will file each Issuer Free Writing Prospectus required to be filed with the Commission pursuant to the Act and the
Rules and Regulations thereunder in accordance therewith and/or (B) has retained or will retain in accordance with the Act and
the Rules and Regulations thereunder all Issuer Free Writing Prospectuses that were not required to be filed pursuant to the Act
and the Rules and Regulations thereunder. The Company has made any Bona Fide Electronic Road Show in compliance with Rule 433(d)(8)(i)
such that no filing of any road show (as defined in Rule 433(h)) is required in connection with the offering of the Series
A Preferred Stock. |
| (v) | Ineligible Issuer Status. As of the determination date referenced in Rule 164(h) under the
Act, the Company was not, is not or will not be (as applicable) an “ineligible issuer” in connection with the offering
of the Offered Shares pursuant to Rules 164, 405 and 433, including (x) the Company or its subsidiaries in the preceding three
years not having been convicted of a felony or misdemeanor or having been made the subject of a judicial or administrative decree
or order as described in Rule 405 and (y) the Company or its subsidiaries in the preceding three years not having been the subject
of a bankruptcy petition or insolvency or similar proceeding, not having had a registration statement be the subject of a proceeding
or examination under Section 8 of the Act and not being the subject of a pending proceeding under Section 8A of the Act in connection
with an offering, all as described in Rule 405. |
| (vi) | Good Standing of the Transaction Entities. The Company has been duly incorporated and is
validly existing as a corporation under the laws of the State of Maryland and is in good standing with the State Department of
Assessments and Taxation of Maryland, with the full corporate power and authority to own its properties and conduct its business
as described in the Registration Statement, the General Disclosure Package and the Prospectus and to enter into and perform its
obligations under this Agreement to which it is a party; and the Company is duly qualified to do business as a foreign corporation
in good standing in all other jurisdictions in which its ownership or lease of property or the conduct of its business requires
such qualification, except where the failure to be so qualified would not, individually or in the aggregate, result in a material
adverse effect on the condition (financial or otherwise), results of operations, earnings, business, properties or prospects of
the Transaction Entities and each of their respective Subsidiaries, taken as a whole (a “Material Adverse Effect”).
The Operating Partnership has been duly formed and is validly existing as a limited partnership in good standing under the laws
of the State of Delaware, with power and authority to own its properties and conduct its business as described in the Registration
Statement, the General Disclosure Package and the Prospectus and to enter into and perform its obligations under this Agreement
to which it is a party; and the Operating Partnership is duly qualified to do business as a foreign organization in good standing
in all other jurisdictions in which its ownership or lease of property or the conduct of its business requires such qualification,
except where the failure to be so qualified would not, individually or in the aggregate, result in a Material Adverse Effect. |
| (vii) | Subsidiaries. Each Subsidiary (including, without limitation, Holdings LLC) has been duly
incorporated or organized and is validly existing and in good standing under the laws of the jurisdiction of its incorporation
or organization, with power and authority (corporate or other) to own its properties and conduct its business as described in the
Registration Statement, the General Disclosure Package and the Prospectus; and each Subsidiary is duly qualified to do business
as a foreign corporation or organization in good standing in all other jurisdictions in which its ownership or lease of property
or the conduct of its business requires such qualification, except where the failure to be so qualified would not, individually
or in the aggregate, result in a Material Adverse Effect; all of the issued and outstanding capital stock, partnership interests
or membership interests of each Subsidiary, including the outstanding LTIP Units of the Operating Partnership, has been duly authorized
and validly issued and is fully paid and nonassessable (except with respect to future contributions as provided in the operating
agreement or limited partnership agreement (or similar organizational document) of the applicable Subsidiary made subsequent to
the date hereof); and the capital stock, membership interest, limited partnership interest or other equity interest of each Subsidiary
held by the Transaction Entities or a Subsidiary, as applicable, is held as set forth on Schedule E hereto. The Transaction
Entities, directly or indirectly through their respective Subsidiaries, hold good and marketable title to their equity interests
in their respective Subsidiaries, in each case free and clear of any lien, encumbrance or security interest, except as described
in the Registration Statement, the General Disclosure Package and the Prospectus, subject only to restrictions on transfer imposed
under applicable U.S. federal and state securities laws and the limited liability company agreement, limited partnership agreement
or other organizational document of each Subsidiary; and have not conveyed, transferred, assigned, pledged or hypothecated any
of their respective equity interests in their Subsidiaries, in whole or in part, or granted any rights, options or rights of first
refusal or first offer to purchase any of such interests or any portion thereof. |
| (viii) | Subsidiaries of Transaction Entities. The Transaction Entities do not own or control, directly
or indirectly, any corporation, association or other entity other than (i) the subsidiaries listed in Exhibit 21 to the Registration
Statement, (ii) the subsidiaries not listed on Exhibit 21 but listed on Schedule D hereto, and (ii) such other entities omitted
from Exhibit 21 which, when such omitted entities are considered in the aggregate as a single subsidiary, would not constitute
a “significant subsidiary” within the meaning of Rule 1-02(w) of Regulation S-X. |
| (ix) | Authorization of Underwriting Agreement. This Agreement has been duly authorized, executed
and delivered by each of the Transaction Entities and is enforceable against each Transaction Entity in accordance with the applicable
terms contained herein. |
| (x) | Shares. The Offered Shares and all outstanding shares of capital stock of the Company have
been duly authorized; the authorized equity capitalization of the Company is as set forth in the Registration Statement, the General
Disclosure Package and the Prospectus under the caption “Capitalization”, all outstanding shares of capital stock of
the Company are, and when the Offered Shares have been delivered and paid for in accordance with this Agreement on each Closing
Date as set forth in the Registration Statement, the General Disclosure Package and the Prospectus, such Offered Shares will be,
validly issued, fully paid and nonassessable, will conform to the information in the Registration Statement, the General Disclosure
Package and the Prospectus and to the description of such Offered Shares contained therein; the stockholders of the Company have
no preemptive rights with respect to the Offered Shares; none of the outstanding shares of capital stock have been issued in violation
of any preemptive or similar rights of any security holder; any forms of certificates used to represent the Offered Shares comply
in all material respects with all applicable statutory requirements and with any applicable requirements of the Organizational
Documents of the Company, and with any requirements of the NYSE MKT. Except as disclosed in the Registration Statement, the General
Disclosure Package and the Prospectus, there are no outstanding (a) securities of the Company reserved for any purpose (other than
certain outstanding common units of partnership interest in the Operating Partnership (the “OP Units”) and LTIP
Units disclosed in the General Disclosure Package and the Prospectus), (b) securities or obligations of the Company convertible
into or exchangeable for any shares of common stock, $0.01 par value per share, of the Company (the “Common Stock”),
Series A Preferred Stock or shares of Series B Redeemable Preferred Stock outstanding, par value $0.01 per share (the “Series
B Preferred Stock”), (c) warrants, rights or options to subscribe for or purchase from the Company any such shares of
Common Stock, Series A Preferred Stock or Series B Preferred Stock or any such convertible or exchangeable securities or obligations
or (d) obligations of the Company to issue or sell any shares of Common Stock, Series A Preferred Stock or Series B Preferred Stock,
any such convertible or exchangeable securities or obligations, or any such warrants, rights or options. At the First Closing Date,
there will be 19,564,751 shares of Common Stock outstanding, 5,021,460 shares of Series A Preferred Stock outstanding (assuming
the Underwriters do not purchase the Optional Shares prior to the First Closing Date), 1,061,836 LTIP Units outstanding,
5,021,460 Series A Preferred OP Units outstanding (assuming the Underwriters do not purchase the Optional Shares prior to the First
Closing Date), warrants to purchase approximately 15,500 shares of Common Stock outstanding, approximately 775 shares of Series
B Preferred Stock, approximately 775 Series B Preferred Units of partnership interest in the Operating Partnership (the “Series
B Preferred OP Units”) and 19,852,320 OP Units outstanding, and each such class of securities conforms to the description
set out in the Registration Statement, the General Disclosure Package and the Prospectus. |
| (xi) | No Equity Awards. Except for grants (including those subject
to issuance under the Management Agreement) disclosed in the Registration Statement, the General Disclosure Package and the Prospectus
and grants of an aggregate of 7,500 restricted shares of Class A common stock on March 24, 2016 to the independent members of the
Company’s Board of Directors, the Company has not granted, to any person or entity a stock option or other equity-based award
of or to purchase Common Stock, Series A Preferred Stock or Series B Preferred Stock pursuant
to an equity-based compensation plan or otherwise. |
| (xii) | OP Units and Preferred OP Units. |
| (1) | OP Units. All outstanding OP Units have been duly authorized; all outstanding OP Units are
validly issued and will conform to the information in the Registration Statement, the General Disclosure Package and the Prospectus
and to the description of such OP Units contained therein; the holders of the outstanding OP Units have no preemptive rights with
respect to the outstanding OP Units; none of the outstanding OP Units have been issued in violation of any preemptive or similar
rights of any security holder; all outstanding OP Units have been issued and sold in compliance with all applicable federal and
state securities laws. Except as disclosed in the Registration Statement, the General Disclosure Package and the Prospectus, there
are no outstanding (a) securities of the Operating Partnership reserved for any purpose, (b) securities or obligations of the Operating
Partnership convertible into or exchangeable or redeemable for any partnership interests of the Operating Partnership, (c) warrants,
rights or options to subscribe for or purchase from the Operating Partnership any such partnership interests or any such convertible
or exchangeable securities or obligations or (d) obligations of the Operating Partnership to issue or sell any partnership interests,
any such convertible or exchangeable securities or obligations, or any such warrants, rights or options. There are 19,852,320 OP
Units outstanding, of which the Company owns, directly or indirectly, 19,564,752 OP Units. |
| (2) | Series A Preferred OP Units.
All outstanding Series A Preferred OP Units have been duly authorized; all outstanding Series A Preferred OP Units are validly
issued and will conform to the information in the Registration Statement, the General Disclosure Package and the Prospectus and
to the description of such Series A Preferred OP Units contained therein; the holders of the outstanding OP Units have no preemptive
rights with respect to the outstanding Series A Preferred OP Units; none of the outstanding Series A Preferred OP Units have been
issued in violation of any preemptive or similar rights of any security holder; all outstanding Series A Preferred OP Units have
been issued and sold in compliance with all applicable federal and state securities laws. The Company Preferred OP Units have been
duly authorized; when the Company Preferred OP Units have been delivered and paid for in accordance with the OP Agreement, the
Company Preferred OP Units will be validly issued and will conform to the information in the Registration Statement, the General
Disclosure Package and the Prospectus and to the description of such Company Preferred OP Units contained therein; there are no
outstanding preemptive rights with respect to the Company Preferred OP Units; none of the outstanding Company
Preferred OP Units have been issued in violation of any preemptive or similar rights of any security holder; all Company Preferred
OP Units have been and will be, issued and sold in compliance with all applicable federal and state securities laws. There are
3,021,460 Series A Preferred OP Units outstanding, and at the First Closing Date there will
be 5,021,460 Series A Preferred OP Units outstanding (assuming the Underwriters do not purchase
the Optional Shares prior to the First Closing Date), of which the Company will own, directly or indirectly, 100% of such Series
A Preferred OP Units. |
| (3) | Series B Preferred OP Units. All outstanding Series B Preferred OP Units have been duly
authorized; all outstanding Series B Preferred OP Units are validly issued and will conform to the information in the Registration
Statement, the General Disclosure Package and the Prospectus and to the description of such Series B Preferred OP Units contained
therein; the holders of the outstanding OP Units have no preemptive rights with respect to the outstanding Series B Preferred OP
Units; none of the outstanding Series B Preferred OP Units have been issued in violation of any preemptive or similar rights of
any security holder; all outstanding Series B Preferred OP Units have been issued and sold in compliance with all applicable federal
and state securities laws. Except as disclosed in the Registration Statement, the General Disclosure Package and the Prospectus,
there are no outstanding (a) securities of the Operating Partnership reserved for any purpose, (b) securities or obligations of
the Operating Partnership convertible into or exchangeable or redeemable for any partnership interests of the Operating Partnership,
(c) warrants, rights or options to subscribe for or purchase from the Operating Partnership any such partnership interests or any
such convertible or exchangeable securities or obligations or (d) obligations of the Operating Partnership to issue or sell any
partnership interests, any such convertible or exchangeable securities or obligations, or any such warrants, rights or options.
As of the First Closing Date there are approximately 775 Series B Preferred OP Units outstanding, of which the Company owns, directly
or indirectly, 100% of Series B Preferred OP Units. |
| (xiii) | No Finder’s Fee. Except for the Underwriters’ discounts and commissions payable
by the Company to the Underwriters in connection with the Offered Shares contemplated herein or as otherwise disclosed in the Registration
Statement, the General Disclosure Package and the Prospectus, there are no contracts, agreements or understandings that would give
rise to a valid claim against the Company or any Underwriter for a brokerage commission, finder’s fee or other like payment
in connection with this offering. |
| (xiv) | Registration Rights. Except as described in the Registration Statement, General Disclosure
Package and the Prospectus, there are no contracts, agreements or understandings by either of the Transaction Entities or their
respective Subsidiaries, on the one hand, and any person, on the other hand, granting such person the right to require either of
the Transaction Entities or such Subsidiaries to file a registration statement under the Act with respect to any securities of
either of the Transaction Entities or their respective Subsidiaries owned or to be owned by such person or to require either of
the Transaction Entities or such Subsidiaries to include such securities in the securities registered pursuant to a Registration
Statement or in any securities being registered pursuant to any other registration statement filed by either of the Transaction
Entities or such Subsidiaries under the Act (collectively, “Registration Rights”). |
| (xv) | Articles Supplementary. The articles supplementary of the Company designating the rights
and preferences of the Offered Shares (the “Articles Supplementary”), comply with all applicable requirements
under the Maryland General Corporation Law (the “MGCL”). |
| (xvi) | Listing. The Offered Shares are registered under Section 12(b) of the Exchange Act, which
registration will be maintained pursuant to Section 12(b) of the Exchange Act as of the Closing Date; and the Company has applied
for approval for the listing of the Offered Shares on the NYSE MKT and will receive such approval prior to the Closing Date. |
| (xvii) | Absence of Further Requirements. No consent, approval, authorization, or order of, or filing
or registration with, any governmental agency or body or any court is required for the consummation of the transactions contemplated
by this Agreement, the OP Agreement or any other agreements in connection with the offering, issuance and sale of the Offered Shares
by the Company or the issuance and sale of the Company Preferred OP Units by the Operating Partnership or the performance of obligations
hereunder or pursuant to the terms of the Offered Shares, except the filing of the Prospectus under the Act and a Form 8-K under
the Exchange Act and except such as have been already obtained or as may be required under state securities laws, FINRA or the
NYSE MKT. |
| (xviii) | Title to Property. (1) The Transaction Entities hold, directly or indirectly through their
respective Subsidiaries, good and marketable fee simple title to all of the real property described in the Registration Statement,
the General Disclosure Package and the Prospectus and the improvements (exclusive of improvements owned by tenants, if applicable)
located thereon (individually, a “Property” and collectively, the “Properties”), in each
case, free and clear of all liens, encumbrances, claims, security interests, restrictions and defects, except such as are disclosed
in the Registration Statement, the General Disclosure Package and the Prospectus, or do not materially affect the value of such
Properties as a whole and do not materially interfere with the use made and proposed to be made of such Properties as a whole by
the Company; (2) except as set forth in the Registration Statement, the General Disclosure Package and the Prospectus, none of
the Transaction Entities or any of their respective Subsidiaries owns any real property other than the Properties; (3) except as
set forth in the Registration Statement, the General Disclosure Package and the Prospectus, the mortgages or deeds of trust that
encumber certain of the Properties are not convertible into debt or equity securities of the Transaction Entities and their respective
Subsidiaries and such mortgages and deeds of trust are not cross-defaulted with any loan not made to, or cross-collateralized to
any property not owned directly or indirectly by, the Transaction Entities or their respective Subsidiaries; (4) each of the Properties
complies with all applicable codes, laws and regulations (including without limitation, building and zoning codes, laws and regulations
and laws relating to access to the Properties), except as would not individually or in the aggregate materially affect the value
of the Properties or interfere in any material respect with the use made and proposed to be made of the Properties by the Transaction
Entities; (5) except as set forth in the Registration Statement, the General Disclosure Package and the Prospectus, neither of
the Transaction Entities nor their respective Subsidiaries has received from any governmental authority any written notice of any
condemnation of or zoning change affecting the Properties or any part thereof which if consummated would reasonably be expected
to have a Material Adverse Effect on the Transaction Entities and their respective Subsidiaries, taken as a whole, and none of
the Transaction Entities and their respective Subsidiaries know of any such condemnation or zoning change which is threatened and,
in each case, which if consummated would reasonably be expected to have a Material Adverse Effect on the Transaction Entities and
their respective Subsidiaries, taken as a whole, whether or not arising from transactions in the ordinary course of business; (6)
no third party has an option or a right of first refusal to purchase any Property or any portion thereof or direct interest therein,
except as such is set forth in the Registration Statement, the General Disclosure Package and the Prospectus; and (7) each of the
Transaction Entities or one of its respective Subsidiaries has obtained an owner’s title insurance policy, from a title insurance
company licensed to issue such policy, on each Property that insures the Transaction Entities’, the respective Subsidiary’s
fee interest in such Property. |
| (xix) | Leases. (1) Each of the Transaction Entities or one of its Subsidiaries holds the lessor’s
interest under the applicable leases with any tenants occupying each Property (collectively, the “Leases”);
(2) other than the Leases, none of the Transaction Entities or their respective Subsidiaries has entered into any agreements that
would materially affect the value of the Properties as a whole or would materially interfere with the use made and proposed to
be made of such Properties as a whole by the Transaction Entities; (3) none of the Transaction Entities, their respective Subsidiaries,
or, to the Transaction Entities’ knowledge, any other party to any Lease, is or, upon consummation of the transaction contemplated
by this Agreement, will be in breach or default of any such Lease, except as to any such breach or default as would not have a
Material Adverse Effect on the Transaction Entities and their respective Subsidiaries, taken as a whole; (4) no event has occurred
or, to the Transaction Entities’ knowledge, has been threatened in writing, which with or without the passage of time or
the giving of notice, or both, would, individually or together with all such other events, constitute a default under any Lease,
or would, permit termination, modification or acceleration under such Lease, except as to any such default as would not have a
Material Adverse Effect on the Transaction Entities and their respective Subsidiaries, taken as a whole; (5) each of the Leases
is valid and binding and in full force and effect, subject to applicable bankruptcy, insolvency, moratorium or other similar laws
relating to creditors’ rights and general principles of equity, except as would not have a Material Adverse Effect on the
Transaction Entities or their respective Subsidiaries; and (6) none of the Transaction Entities, their respective Subsidiaries,
or, to the Transaction Entities’ knowledge, any other party to any Lease, is a party to any ground lease, sublease or operating
sublease relating to any of their Properties. |
| (xx) | Utilities. To the knowledge of the Transaction Entities and their respective Subsidiaries,
water, stormwater, sanitary sewer, electricity and telephone service are all available at the property lines of each Property over
duly dedicated streets or perpetual easements of record benefiting the applicable Property. |
| (xxi) | Absence of Defaults and Conflicts Resulting from Transaction. The execution, delivery and
performance of this Agreement, and the issuance and sale of the Offered Shares by the Company (including the issuance of the Conversion
Shares (as defined below)) and the issuance and sale of the Company Preferred OP Units by the Operating Partnership, and the use
of net proceeds therefrom as contemplated by the Registration Statement, the General Disclosure Package and the Prospectus, will
not result in a breach or violation of any of the terms or provisions of, or constitute a default or, to the extent applicable,
a Debt Repayment Triggering Event (as defined below) under or result in the imposition of any lien, charge or encumbrance upon
any property or assets of the Transaction Entities or any of their respective Subsidiaries pursuant to (A) the Organizational Documents
(as defined below) of the Transaction Entities or any of their respective Subsidiaries, (B) any statute, rule, regulation or order
of any governmental agency or body or any court, domestic or foreign, having jurisdiction over the Transaction Entities or any
of their respective Subsidiaries or any of their Properties, or (C) any agreement, lease, contract, indenture or other agreement
or instrument to which the Transaction Entities or any of their respective Subsidiaries is a party or by which the Transaction
Entities or any of their respective Subsidiaries is bound or to which any of the Properties of the Transaction Entities or any
of their respective Subsidiaries is subject, and except in case of clause (B) only, for such defaults, violations, liens, charges
or encumbrances that would not, individually or in the aggregate, result in a Material Adverse Effect. |
A “Debt Repayment Triggering
Event” means any event or condition that gives, or with the giving of notice or lapse of time would give, the holder
of any guarantee, note, debenture or other evidence of indebtedness (or any person acting on such holder’s behalf) the right
to require the satisfaction, repurchase, redemption or repayment of all or a portion of such indebtedness by the Transaction Entities
or any of their respective Subsidiaries.
The term “Organizational
Documents” as used herein means (a) in the case of a trust, its declaration of trust and bylaws; (b) in the case of a
corporation, its charter and bylaws; (c) in the case of a limited or general partnership, its partnership certificate, certificate
of formation or similar organizational documents and its partnership agreement; (d) in the case of a limited liability company,
its articles of organization, certificate of formation or similar organizational documents and its operating agreement, limited
liability company agreement, membership agreement or other similar agreement; and (e) in the case of any other entity, the organizational
and governing documents of such entity.
| (xxii) | Absence of Existing Defaults and Conflicts. Neither of the Transaction Entities nor any
of their respective Subsidiaries is (A) in violation of its respective Organizational Documents; (B) in default (or with the giving
of notice or lapse of time would be in default) under any existing obligation, agreement, covenant or condition contained in any
indenture, loan, contract, note, agreement, mortgage, lease or other agreement or instrument to which any of them is a party or
by which any of them is bound or to which any of the properties of any of them is subject; or (C) in violation of any law or statute
or any judgment, order, rule or regulation of any court or arbitrator or governmental or regulatory authority, except in the case
of clauses (B) and (C) above, for any such default or violation that would not, individually or in the aggregate, have a Material
Adverse Effect. |
| (xxiii) | Absence of Dividend Restriction. Except as set forth in the Registration Statement, the
General Disclosure Package and the Prospectus, (i) neither of the Transaction Entities nor any of their respective Subsidiaries
is currently prohibited, restricted or limited in its respective ability to pay, directly or indirectly, distributions or dividends
to its equity holders, limited partners, general partners or members, as applicable, (ii) no Subsidiary is prohibited, directly
or indirectly, from repaying to the Transaction Entities any loans or advances to such Subsidiary from the Transaction Entities
or from transferring any of such Subsidiary’s property or assets to the Transaction Entities or any other Subsidiary and
(iii) the Operating Partnership is not prohibited, directly or indirectly, from repaying to the Company any loans or advances to
the Operating Partnership from the Company or from transferring any of the Operating Partnership’s property or assets to
the Company. |
| (xxiv) | Possession of Licenses and Permits. The Transaction Entities and each of their respective
Subsidiaries possess, and are in compliance with the terms of, all adequate certificates, authorizations, franchises, licenses
and permits (“Licenses”) necessary or material to the conduct of the business now conducted or proposed in the
Registration Statement, the General Disclosure Package and the Prospectus to be conducted by them and have not received any notice
of proceedings relating to the revocation or modification of any Licenses that, if determined adversely to the Transaction Entities
or any of their respective Subsidiaries, would, individually or in the aggregate, have a Material Adverse Effect. |
| (xxv) | Absence of Labor Dispute. No labor dispute with the employees of the Transaction Entities
or their respective Subsidiaries exists, except as described in the Registration Statement, General Disclosure Package or Prospectus,
or, to the knowledge of the Transaction Entities, is imminent, which, in any such case, would, singly or in the aggregate, result
in a Material Adverse Effect. |
| (xxvi) | Possession of Intellectual Property. The Transaction Entities and their respective Subsidiaries
have access to, adequate patents, patent rights, licenses, inventions, copyrights, know how (including trade secrets and other
unpatented and/or unpatentable proprietary or confidential information, systems or procedures), trademarks, service marks, trade
names or other intellectual property necessary to conduct the business now operated by them; and neither the Transaction Entities
nor their respective Subsidiaries have received any notice of infringement of or conflict with asserted rights of others with respect
to any of the foregoing which, singly or in the aggregate, if the subject of an unfavorable decision, ruling or finding, would
have a Material Adverse Effect on the Transaction Entities and their respective Subsidiaries, taken as a whole. |
| (xxvii) | Environmental Laws. Except as described in the Registration
Statement, General Disclosure Package and the Prospectus and except as would not reasonably be expected to result, singly or in
the aggregate, in a Material Adverse Effect, neither of the Transaction Entities nor any of their respective Subsidiaries (and,
to the knowledge of the Transaction Entities, no tenant or subtenant of any Property or portion thereof owned or leased by the
Transaction Entities or their respective Subsidiaries) is in violation of any Environmental Law, including relating to the release
of Hazardous Materials, and there are no pending or, to the knowledge of the Transaction Entities, threatened administrative, regulatory
or judicial actions, suits, demands, claims, liens, notices of noncompliance, investigations or proceedings relating to any such
violation or alleged violation. There are no past or present events, conditions, circumstances, activities, practices, actions,
omissions or plans that could reasonably be expected to give rise to any costs or liabilities to the Transaction Entities or any
of their respective Subsidiaries under, or to interfere with or prevent compliance by the Transaction Entities or any of their
respective Subsidiaries with, Environmental Laws, except as such would not have a Material Adverse Effect and would not have a
material adverse effect on a Property or a prospective acquisition property described in the Prospectus, or any of their respective
operations, financial results or value. There are no costs or liabilities associated with Environmental Laws (including, without
limitation, any capital or operating expenditures required for clean-up, closure of properties or compliance with Environmental
Laws or any permit, license or approval, any related constraints on operating activities and any potential liabilities to third
parties) that would, singly or in the aggregate, have a Material Adverse Effect. |
| (xxviii) | Accurate Disclosure. The statements in the Registration Statement, the General Disclosure
Package and the Prospectus under the captions “Prospectus Supplement Summary, “Additional Material Federal Income Tax
Considerations,” “Bluerock Residential Growth REIT, Inc.,” “Description of the Securities We May Offer,”
“Description of Capital Stock,” “Description of Depositary Shares,” “Description of Debt Securities,”
“Description of Warrants,” “Description of Units,” “Book Entry Procedures and Settlement,”
“Important Provisions of Maryland Corporate Law and Our Charter and Bylaws,” “Material Federal Income Tax Considerations,”
“Plan of Distribution” and “Underwriting,” insofar as such statements summarize legal matters, agreements,
documents or proceedings discussed therein, are accurate and fair summaries of such legal matters, agreements, documents or proceedings
and present the information required to be shown. |
| (xxix) | Absence of Manipulation. None of the Transaction Entities, any of their respective Subsidiaries
or any affiliates of the Transaction Entities, has taken, directly or indirectly, any action that is designed to or that has constituted
or that would cause or result in the stabilization or manipulation of the price of any security of the Company to facilitate the
sale or resale of the Offered Shares. |
| (xxx) | Statistical and Market-Related Data. Any third-party statistical and market-related data
included in the Registration Statement, the General Disclosure Package and the Prospectus are based on or derived from sources
that the Transaction Entities believe to be reliable and accurate and, to the extent required, they have obtained written consent
to use such data from such sources. |
| (xxxi) | Compliance with the Sarbanes-Oxley Act. There is and has been no failure on the part of
the Company or any of the Company’s directors or officers, in their capacities as such, to comply in all material respects
with any applicable provision of the Sarbanes-Oxley Act and the rules and regulations promulgated in connection therewith, including
Section 402 related to loans and Sections 302 and 906 related to certifications. |
| (xxxii) | Internal Controls. The Transaction Entities and each of their respective subsidiaries maintain
(A) effective internal controls over financial reporting (as defined under Rule 13a-15 and Rule 15d-15 under the Exchange Act)
and (B) a system of internal accounting controls sufficient to provide reasonable assurance that (i) transactions are executed
in accordance with management’s general or specific authorizations; (ii) transactions are recorded as necessary to permit
preparation of financial statements in conformity with U.S. generally accepted accounting principles (“GAAP”)
and to maintain asset accountability; (iii) access to assets is permitted only in accordance with management’s general or
specific authorization; and (iv) the recorded accountability for assets is compared with the existing assets at reasonable intervals
and appropriate action is taken with respect to any differences. Except as described in the Registration Statement, the General
Disclosure Package and the Prospectus, since the end of the Company’s most recent audited fiscal year, there has been (i)
no material weakness in the Company’s internal control over financial reporting (whether or not remediated) and (ii) no change
in the Company’s internal control over financial reporting that has materially affected, or is reasonably likely to materially
affect, the Company’s internal control over financial reporting. Other than as set forth in the Registration Statement, the
General Disclosure Package and the Prospectus, since the date of the most recent balance sheet of the Company reviewed or audited
by the Company’s accountants, (i) the Audit Committee of the Board of Directors of the Company (the “Board”)
has not been advised of (A) any significant deficiencies in the design or operation of internal controls that could adversely affect
the ability of the Company to record, process, summarize and report financial data, or any material weaknesses in internal controls
and (B) any fraud, whether or not material, that involves management or other employees who have a significant role in the internal
controls of the Company, and (ii) there have been no significant changes in internal controls over financial reporting that has
materially affected the Company’s internal controls over financial reporting, including any corrective actions with regard
to significant deficiencies and material weaknesses. |
| (xxxiii) | Disclosure Controls. The Company and its subsidiaries maintain an effective system of “disclosure
controls and procedures” (as defined in Rule 13a-15(e) and Rule 15d-15 under the Exchange Act) that complies with the requirements
of the Exchange Act and that has been designed to provide reasonable assurances that information required to be disclosed by the
Company in reports that it files or submits under the Exchange Act is recorded, processed, summarized and reported within the time
periods specified in the Commission’s rules and forms, including controls and procedures designed to ensure that such information
is accumulated and communicated to the Company’s management as appropriate to allow timely decisions regarding required disclosure,
and such disclosure controls and procedures are effective in all material respects to perform the functions for which they were
established. |
| (xxxiv) | XBRL. The interactive data in extensible Business Reporting Language included in the Registration
Statement fairly presents the information called for in all material respects and has been prepared in accordance with the Commission’s
rules and guidelines applicable thereto. |
| (xxxv) | Litigation. Other than as described in the Registration Statement, General Disclosure Package
and Prospectus, there are no pending actions, suits or proceedings (including any inquiries or investigations by any court or governmental
agency or body, domestic or foreign) against or affecting the Transaction Entities or any of their respective Subsidiaries or Properties
that, if determined adversely to the Transaction Entities or any of their respective Subsidiaries or Properties, would materially
and adversely affect the ability of the Transaction Entities to perform their respective obligations under this Agreement, or which
are otherwise material in the context of the sale of the Offered Shares; and no such actions, suits or proceedings (including any
inquiries or investigations by any court or governmental agency or body, domestic or foreign) are threatened or, to the Transaction
Entities’ knowledge, contemplated against their respective Subsidiariesor the Properties. |
| (xxxvi) | Financial Statements; Non-GAAP Financial Measures. The financial statements of the Company
and its consolidated subsidiaries included in the Registration Statement, the General Disclosure Package and the Prospectus, together
with the related schedules and notes, present fairly in all material respects the financial position of the Company and its consolidated
subsidiaries as of the dates indicated, and the balance sheet, statements of operations, changes in members’ equity and cash
flows of the Company and its consolidated subsidiaries for the periods specified; said financial statements have been prepared
in conformity with GAAP applied on a consistent basis throughout the periods involved and comply with the Commission’s rules
and guidelines with respect thereto. The supporting schedules included in the Registration Statement, the General Disclosure Package
and the Prospectus relating to the Company and its consolidated subsidiaries present fairly in accordance with GAAP the information
required to be stated therein. The combined statements of revenue and certain expenses included in the Registration Statement,
the General Disclosure Package and the Prospectus, together with the related notes, comply with Rule 8-06 of Regulation S-X and
present fairly in all material respects the revenue and certain expenses of the applicable Property for the periods specified;
said financial statements have been prepared in conformity with GAAP applied on a consistent basis throughout the periods involved
and comply with the Commission’s rules and guidelines with respect thereto. The selected financial data and the summary financial
information included in the Registration Statement, the General Disclosure Package and the Prospectus present fairly the information
shown therein and have been compiled on a basis consistent with that of the audited, or unaudited as applicable, financial statements
of the Company and its consolidated Subsidiaries included therein and comply with the Commission’s rules and guidelines with
respect thereto. The pro forma financial statements, if any, and the related notes thereto included in the Registration Statement,
the General Disclosure Package and the Prospectus present fairly in all material respects the information shown therein, comply
with the Commission’s rules and guidelines with respect to pro forma financial statements and have been properly compiled
on the bases described therein, and the assumptions used in the preparation thereof are reasonable and the adjustments used therein
are appropriate to give effect to the transactions and circumstances referred to therein. Except as included therein, no historical
or pro forma financial statements or supporting schedules are required to be included in the Registration Statement, the General
Disclosure Package or the Prospectus under the Act or Rules and Regulations thereunder. All disclosures contained in the Registration
Statement, the General Disclosure Package or the Prospectus regarding “non-GAAP financial measures” (as such term is
defined by the Rules and Regulations ) comply with Regulation G of the Exchange Act and Item 10 of Regulation S-K of the Act to
the extent applicable. |
| (xxxvii) | No Material Adverse Change in Business. Except as disclosed in the Registration Statement,
the General Disclosure Package and the Prospectus, since the end of the period covered by the latest audited financial statements
included therein (A) there has been no change, nor any development or event involving a prospective change, in the condition (financial
or otherwise), results of operations, business, earnings, properties or prospects of the Transaction Entities and their respective
subsidiaries, taken as a whole, that is material and adverse, (B) there has been no dividend or distribution of any kind declared,
paid or made by the Transaction Entities and the Subsidiaries, on any class of the capital stock, membership interest or other
equity interest, as applicable, except as would not have been required to be disclosed pursuant to the Exchange Act or the Exchange
Act Regulations, (C) there has been no material change in the capital shares of stock, short-term indebtedness, long-term indebtedness,
net current assets or net assets of the Transaction Entities or any of their respective Subsidiaries, (D) there has not been any
material transaction entered into or any material transaction that is probable of being entered into by the Transaction Entities
and their respective Subsidiaries, other than transactions in the ordinary course of business and changes and transactions disclosed
or described in the Registration Statement, the General Disclosure Package and the Prospectus, (E) there has not been any obligation,
direct or contingent, which is material to the Transaction Entities and their respective Subsidiaries, taken as a whole, incurred
by the Transaction Entities and their respective Subsidiaries, except obligations incurred in the ordinary course of business and
changes and transactions disclosed or described in the Registration Statement, the General Disclosure Package and the Prospectus,
and (F) none of the Transaction Entities or any of their subsidiaries has sustained any loss or interference with its business
from fire, explosion, flood or other calamity, whether or not covered by insurance, or from any labor disturbance or dispute or
any action, order or decree of any court or arbitrator or governmental or regulatory authority that would, singly or in the aggregate,
have a Material Adverse Effect. |
| (xxxviii) | Investment Company Act. Neither of the Transaction Entities are, nor after giving effect
to the offering and sale of the Offered Shares and the application of the proceeds thereof as described in the Registration Statement,
the General Disclosure Package and the Prospectus, will be required to register as an “investment company” as defined
in the Investment Company Act of 1940, as amended (the “Investment Company Act”). |
| (xxxix) | Indebtedness. Neither the Transaction Entities nor any of their respective Subsidiaries
has any indebtedness as of the date of this Agreement, and neither the Transaction Entities nor any of their respective Subsidiaries
will have any indebtedness immediately prior to the sale of the Firm Shares on the First Closing Date, in each case except as disclosed
in the Registration Statement, the General Disclosure Package and the Prospectus. |
| (xl) | Insurance. The Transaction Entities and each of their respective Subsidiaries are insured
by insurers with appropriately rated claims paying abilities against such losses and risks and in such amounts as are prudent and
customary for the businesses in which they are engaged; all policies of insurance and fidelity or surety bonds insuring the Transaction
Entities, their respective Subsidiaries or their respective businesses, assets, employees, officers and directors are in full force
and effect; neither of the Transaction Entities nor any of their respective Subsidiaries has been refused any insurance coverage
sought or applied for; neither of the Transaction Entities nor any of their respective Subsidiaries has any reason to believe that
it will not be able to renew its existing insurance coverage as and when such coverage expires or to obtain similar coverage from
similar insurers as may be necessary to continue its business at a similar cost as currently paid, except as set forth in or contemplated
in the Registration Statement, the General Disclosure Package and the Prospectus; and the Company has obtained or will obtain directors’
and officers’ insurance in such amounts as is customary for companies engaged in the type of business conducted by the Company. |
| (xli) | Tax Law Compliance. Each of the Transaction Entities and the Subsidiaries has timely filed
all federal, state and local tax returns that are required to be filed or has timely requested extensions thereof (“Returns”),
except for any failures to file that, individually or collectively, would not result in a Material Adverse Effect, and has paid
all taxes required to be paid by it and any other assessment, fine or penalty levied against it, to the extent that any of the
foregoing is due and payable, except for any such assessments, fines or penalties that are currently being contested in good faith
or that, individually or collectively, would not result in a Material Adverse Effect. No audits or other administrative proceedings
or court proceedings are presently pending against any of the Transaction Entities or the Subsidiaries with regard to any Returns,
and no taxing authority has notified any of the Transaction Entities or the Subsidiaries that it intends to investigate its tax
affairs, except for any such audits or investigations that, individually or collectively, would not result in the assessment of
material taxes. |
| (xlii) | Real Estate Investment Trust. The Company has been organized and has operated in conformity
with the requirements for qualification and taxation as a real estate investment trust (a “REIT”) under the
Internal Revenue Code of 1986, as amended (the “Code”), for its taxable years ended December 31, 2010 through
December 31, 2015, and the Company’s organization and method of operation (as described in the Registration Statement, the
General Disclosure Package and the Prospectus) will enable the Company to continue to meet the requirements for qualification and
taxation as a REIT under the Code for its taxable year ending December 31, 2016 and thereafter. All statements regarding the Company’s
qualification and taxation as a REIT set forth in the Registration Statement, the General Disclosure Package and the Prospectus
are correct in all material respects. |
| (xliii) | Accuracy of Exhibits. There are no contracts or other documents that are required to be
described in the Registration Statement, the General Disclosure Package or the Prospectus or to be filed as exhibits to the Registration
Statement that are not described or filed as required by Item 601 of Regulation S-K or otherwise under the Rules and Regulations. |
| (xliv) | No Restriction on Subsidiaries. No Subsidiary of the Company is currently prohibited, directly
or indirectly, under any agreement or other instrument to which it is a party or is subject, from paying any dividends to the Company,
from making any other distribution on such Subsidiary’s capital stock or membership interest, from repaying to the Company
any loans or advances to such Subsidiary from the Company or from transferring any of such Subsidiary’s properties or assets
to the Company or any other Subsidiary of the Company, except as disclosed in the Registration Statement, the General Disclosure
Package and the Prospectus. |
| (xlv) | No Unlawful Payments. None of the Transaction Entities, any of their respective Subsidiaries,
any director or officer or, to the knowledge of the Transaction Entities, any agent, employee or other person associated with or
acting on behalf of the Transaction Entities or any of their respective Subsidiaries, has (i) used any corporate funds for any
unlawful contribution, gift, entertainment or other unlawful expense relating to political activity; (ii) made any direct or indirect
unlawful payment to any foreign or domestic government official or employee from corporate funds; (iii) violated or is in violation
of any provision of the Foreign Corrupt Practices Act of 1977, as amended, and the rules and regulations thereunder; or (iv) made
any bribe, rebate, payoff, influence payment, kickback or other unlawful payment. |
| (xlvi) | Compliance with Anti-Money Laundering Laws. The operations of the Transaction Entities and
their respective Subsidiaries are and have been conducted at all times in compliance with applicable financial recordkeeping and
reporting requirements of the Currency and Foreign Transactions Reporting Act of 1970, as amended, the applicable anti-money laundering
statutes of all jurisdictions in which the Transaction Entities and their respective Subsidiaries conduct business or whose Anti-Money
Laundering Laws (as defined below) apply to the Transaction Entities, the rules and regulations thereunder and any related or similar
rules, regulations or guidelines, issued, administered or enforced by any governmental agency (collectively, the “Anti-Money
Laundering Laws”) and no action, suit or proceeding by or before any court or governmental agency, authority or body
or any arbitrator involving the Transaction Entities or any of their respective Subsidiaries with respect to the Anti-Money Laundering
Laws is pending or, to the knowledge of the Transaction Entities, threatened. |
| (xlvii) | Compliance with OFAC. None of the Transaction Entities,
any of their respective subsidiaries or, to the knowledge of either of the Transaction Entities, any director, officer, agent,
employee or affiliate thereof is currently subject to any U.S. sanctions administered by the Office of Foreign Assets Control of
the U.S. Department of the Treasury (“OFAC”); and the Company will not, directly or indirectly, use the proceeds
of the offering of the Series A Preferred Stock hereunder, or lend, contribute or otherwise
make available such proceeds to any subsidiary, joint venture partner or other person or entity, for the purpose of financing the
activities of any person currently subject to any U.S. sanctions administered or enforced by OFAC. |
| (xlviii) | Prior Sales of Series A
Preferred Stock, Series B Preferred Stock, Series A Preferred OP Units, Series B Preferred
OP Units, Series A OP Units or LTIP Units. Except
as disclosed in the Registration Statement, the General Disclosure Package and the Prospectus, the Company has not sold, issued
or distributed any Series A Preferred Stock and Series B Preferred Stock, and the Operating
Partnership has not issued, sold or distributed any Series A Preferred OP Units, Series
B Preferred OP Units, Series A OP Units or LTIP Units during the six-month period preceding
the date hereof. |
| (xlix) | Fourth Amendment to the OP Agreement. The terms of the Fourth
Amendment to the OP Agreement provide for a sufficient number of Series A Preferred OP Units,
the terms of which are substantially similar to the terms of the Series A Preferred Stock. |
| (l) | Compliance with Laws. Each of the OP Agreement, the First Amendment to the OP Agreement,
the Second Amendment to the OP Agreement, the Third Amendment and the Fourth Amendment to the OP Agreement comply with all applicable
laws and each of the aforementioned amendments to the OP Agreement have been adopted in accordance with the OP Agreement. |
| (li) | Independent Accountants. BDO USA, LLP and Plante & Moran, PLLC, who have certified the
financial statements and supporting schedules included in the Registration Statement, the General Disclosure Package and the Prospectus
are independent public accountants as required by the Act, the Rules and Regulations and the Public Company Accounting Oversight
Board. |
| (lii) | ERISA Matters. The Transaction Entities and each of their Subsidiaries is in compliance
in all material respects with all presently applicable provisions of the Employee Retirement Income Security Act of 1974, as amended,
including the regulations and published interpretations thereunder (“ERISA”); no “reportable event”
(as defined in ERISA) has occurred with respect to any “pension plan” (as defined in ERISA) for which the Transaction
Entities and each Subsidiary would have any liability; the Transaction Entities and each Subsidiary has not incurred and does not
expect to incur liability under (i) Title IV of ERISA with respect to termination of, or withdrawal from, any “pension plan”
or (ii) Sections 412, 403, 431, 432 or 4971 of the Code; and each “pension plan” for which the Transaction Entities
or any Subsidiary would have any liability that is intended to be qualified under Section 401(a) of the Code is so qualified in
all material respects and nothing has occurred, whether by action or by failure to act, which would cause the loss of such qualification. |
| (liii) | Enforceability of Management Agreement. The Management Agreement by and among the Transaction
Entities and the Manager (the “Management Agreement”), has been duly authorized by the Transaction Entities
and constitutes a valid and binding agreement of the Transaction Entities enforceable in accordance with its terms, except to the
extent limited by applicable bankruptcy, insolvency, fraudulent conveyance, reorganization, moratorium and similar laws relating
to or affecting creditors’ rights and remedies generally, and subject, as to enforceability, to general principles of equity
and, with respect to equitable relief, the discretion of the court before which any proceeding therefor may be brought (regardless
of whether enforcement is sought in a proceeding at law or in equity). |
| (liv) | Subsidiary Partnership Tax Classification. Each of the Operating Partnership and each Subsidiary
that is a partnership or a limited liability company under state law has been at all relevant times properly classified as a partnership
or a disregarded entity, and not as a corporation or an association taxable as a corporation, for federal income tax purposes. |
| (lv) | Related-Party Transactions. There are no relationships, whether direct or indirect, or related-party
transactions involving the Transaction Entities or any of their respective Subsidiaries or any other person required to be described
in the Registration Statement, the General Disclosure Package or the Prospectus that have not been described as required by the
Act. |
| (b) | Certificates of Officers. Any certificate signed by any officer of either Transaction Entity,
as applicable, and delivered to the Representatives or counsel for the Underwriters in connection with the offering of the Offered
Shares shall be deemed a representation and warranty by each Transaction Entity, as applicable, as to matters covered thereby,
to each Underwriter. |
| 2. | Representations and Warranties Regarding the Manager. |
| (a) | Representations and Warranties. The Manager represents and warrants to each Underwriter
and agrees with the Underwriters that: |
| (i) | Good Standing of the Manager. The Manager has been duly organized and is validly existing
as a limited liability company in good standing under the laws of the State of Delaware and has full power and authority to own,
lease and operate its properties and to conduct its business as described in the Registration Statement, the General Disclosure
Package and the Prospectus and to enter into and perform its obligations under this Agreement; and the Manager and each of its
subsidiaries is duly qualified as a foreign entity to transact business and is in good standing in each other jurisdiction in which
such qualification is required, whether by reason of the ownership or leasing of property or the conduct of business, except where
the failure so to qualify or to be in good standing would not result in a Material Adverse Effect. |
| (ii) | Authorization of Agreement. This Agreement has been duly authorized, executed and delivered
by the Manager. |
| (iii) | Absence of Further Requirements. No consent, approval, authorization, or order of, or filing
or registration with, any court or governmental authority or agency is necessary or required for the performance by the Manager
of its obligations under this Agreement and the Management Agreement, except such as have been already obtained or as may be required
under the Act, Exchange Act Regulations, state securities laws, FINRA or the NYSE MKT. |
| (iv) | Absence of Defaults and Conflicts. The Manager is not in violation of its organizational
documents or in default in the performance or observance of any obligation, agreement, covenant or condition contained in any contract,
indenture, mortgage, deed of trust, loan or credit agreement, note, lease or other agreement or instrument to which the Manager
is a party or will be a party in connection with this Agreement (including the Management Agreement) or by which it may be bound,
or to which any of the property or assets of the Manager is subject (collectively, “Manager’s Agreements and Instruments”),
except for such violations or defaults that would not result in a Material Adverse Effect; and the execution, delivery and performance
of this Agreement do not and will not, and in the case of the performance of the Management Agreement, will not, whether with or
without the giving of notice or passage of time or both, conflict with or constitute a breach of, or default or repayment event
under, or result in the creation or imposition of any lien, charge or encumbrance upon any property or assets of the Manager pursuant
to, the Manager’s Agreements and Instruments (except for such conflicts, breaches, defaults or repayment events or liens,
charges or encumbrances that would not result in a Material Adverse Effect), nor will such action result in any violation of (A)
the provisions of the Organizational Documents of the Manager or (B) any statute, law, rule, regulation, or order of any government
agency or body or any court, domestic or foreign, having jurisdiction over the Manager or any of its assets, properties or operations,
except in the case of clause (B) only, for any such violation that would not result in a Material Adverse Effect. |
| (v) | Possession of Licenses and Permits. The Manager possesses, and is in compliance with the
terms of, all Licenses necessary or material to the conduct of the business of the Manager now conducted or proposed in the Registration
Statement, the General Disclosure Package and the Prospectus to be conducted by the Manager, except where the failure to possess
such Licenses would not, singly or in the aggregate, result in a Material Adverse Effect, and has not received any notice of proceedings
relating to the revocation or modification of any Licenses that, if determined adversely to the Manager would, individually or
in the aggregate, have a Material Adverse Effect. |
| (vi) | Employment; Noncompetition; Nondisclosure. The Manager has not been notified that any of
its executive officers or key employees named in the Registration Statement, the General Disclosure Package and the Prospectus
(each, a “Company-Focused Professional”) plans to terminate his or her employment with the Manager. Neither the Manager
nor, to the knowledge of the Manager, any Company-Focused Professional is subject to any noncompete, nondisclosure, confidentiality,
employment, consulting or similar agreement that would be violated by the present or proposed business activities of the Company
or the Manager as described in the Registration Statement, the General Disclosure Package and the Prospectus. |
| (vii) | Accurate Disclosure. The statements regarding the Manager in the Registration Statement,
the General Disclosure Package and the Prospectus under the captions “Prospectus Supplement Summary,” “Risk Factors,”
“Description of Capital Stock—Distributions” and “Bluerock Residential Growth REIT, Inc.,” are true
and correct in all material respects. |
| (viii) | Absence of Manipulation. The Manager has not taken, and will not take, directly or indirectly,
any action that is designed to or that has constituted or that would be expected to cause or result in stabilization or manipulation
of the price of any security of the Company to facilitate the sale or resale of the Offered Shares. |
| (ix) | Absence of Proceedings. There are no actions, suits or proceedings (including any inquiries
or investigations by any court or governmental agency or body, domestic or foreign) now pending, or, to the knowledge of the Manager,
threatened against or affecting the Manager that, if determined adversely to the Manager, would, individually or in the aggregate,
have a Material Adverse Effect. |
| (x) | Investment Advisers Act. The Manager is not prohibited by the Investment Advisers Act of
1940, as amended, or the rules and regulations thereunder, from performing its obligations under the Management Agreement as described
in the Registration Statement, the General Disclosure Package and the Prospectus. |
| (xi) | Enforceability of Management Agreement. The Management Agreement has been duly authorized
by all necessary action and constitutes a valid and binding agreement of the Manager enforceable in accordance with its terms,
except to the extent limited by applicable bankruptcy, insolvency, fraudulent conveyance, reorganization, moratorium and similar
laws relating to or affecting creditors’ rights and remedies generally, and subject, as to enforceability, to general principles
of equity and, with respect to equitable relief, the discretion of the court before which any proceeding therefor may be brought
(regardless of whether enforcement is sought in a proceeding at law or in equity). |
| (xii) | Internal Controls. The Manager operates under the Company’s system of internal accounting
controls in order to provide reasonable assurances that (A) transactions effectuated by it on behalf of the Company pursuant to
its duties set forth in the Management Agreement are executed in accordance with management’s general or specific authorization;
and (B) access to the Company’s assets is permitted only in accordance with management’s general or specific authorization. |
| (xiii) | Resources. The Manager has the financial and other resources available to it necessary for
the performance of its services and obligations as contemplated hereby and in the Management Agreement, the Registration Statement,
the General Disclosure Package and the Prospectus. |
| (b) | Certificates of Officers. Any certificate signed by any officer of the Manager and delivered
to the Representatives or counsel for the Underwriters shall be deemed a representation and warranty by the Manager as to matters
covered thereby, to each Underwriter. |
| 3. | Purchase, Sale and Delivery of Offered Shares. |
On the basis of the representations,
warranties and agreements and subject to the terms and conditions set forth herein, the Company agrees to sell to the several Underwriters,
and each of the Underwriters agrees, severally and not jointly, to purchase from the Company, at a purchase price of $24.2125 per
share, the respective number of Firm Shares set forth opposite the names of the Underwriters in Schedule A hereto.
The Company will deliver the
Firm Shares to or as instructed by the Representatives for the accounts of the several Underwriters in a form reasonably acceptable
to the Representatives against payment of the purchase price by the Underwriters in Federal (same day) funds by wire transfer to
an account at a bank acceptable to the Representatives drawn to the order of the Company at the office of Bass, Berry & Sims
PLC (“BBS”), at 10:00 A.M., New York time, on April 25, 2016, or at such other time not later than seven (7)
full business days thereafter as the Representatives and the Company determine, such time being herein referred to as the “First
Closing Date.” For purposes of Rule 15c6-1 under the Exchange Act, the First Closing Date (if later than the otherwise
applicable settlement date) shall be the settlement date for payment of funds and delivery of securities for all the Offered Shares
sold pursuant to the offering. The Firm Shares so to be delivered or evidence of their issuance will be made available for review
at the above office of BBS at least 24 hours prior to the First Closing Date.
In addition, upon written notice
from the Representatives given to the Company from time to time not more than 30 days subsequent to the date of the Prospectus,
the Underwriters may purchase all or less than all of the Optional Shares at the purchase price per share to be paid for the Firm
Shares, less an amount per share equal to any dividends or distribution declared by the Company and payable on the Firm Shares
but not payable on the Optional Shares. The Company agrees to sell to the Underwriters the number of Optional Shares specified
in such notice and the Underwriters agree, severally and not jointly, to purchase such number of Optional Shares. Such Optional
Shares shall be purchased for the account of each Underwriter in the same proportion as the number of Firm Shares set forth opposite
such Underwriter’s name bears to the total number of Firm Shares (subject to adjustment by the Representatives to eliminate
fractions) and may be purchased by the Underwriters only for the purpose of covering over-allotments made in connection with the
sale of the Firm Shares. No Optional Shares shall be sold or delivered unless the Firm Shares previously have been, or simultaneously
are, sold and delivered. The right to purchase the Optional Shares or any portion thereof may be exercised from time to time and
to the extent not previously exercised may be surrendered and terminated at any time upon notice by the Representatives to the
Company.
Each time for the delivery of
and payment for the Optional Shares, being herein referred to as an “Optional Closing Date,” which may be the
First Closing Date (the First Closing Date and each Optional Closing Date, if any, being sometimes referred to as a “Closing
Date”), shall be determined by the Representatives but shall be not later than three full business days after written
notice of election to purchase Optional Shares is given. The Company will deliver the Optional Shares being purchased on each Optional
Closing Date to or as instructed by the Representatives for the accounts of the several Underwriters in a form reasonably acceptable
to the Representatives against payment of the purchase price therefor in Federal (same day) funds by wire transfer to an account
at a bank acceptable to the Representatives drawn to the order of the Company at the above office of BBS. The Optional Shares being
purchased on each Optional Closing Date or evidence of their issuance will be made available for review at the above office of
BBS at a reasonable time in advance of such Optional Closing Date.
| 4. | Offering by Underwriters. It is understood that the several Underwriters propose to offer
the Offered Shares for sale to the public as set forth in the Prospectus. The Company is advised that the Underwriters propose
to make a public offering of their respective portions of the Offered Shares as soon after the Registration Statement and this
Agreement have become effective as in your judgment is advisable. The Company is further advised by you that the Offered Shares
are to be offered to the public initially at $25.00 per share (the “Public Offering Price”) and to certain dealers
selected by you at a price that represents a concession not in excess of $0.50 per share under the Public Offering Price. |
| 5. | Certain Agreements of the Transaction Entities and the Manager. |
| (a) | The Transaction Entities agree with the several Underwriters that: |
| (i) | Additional Filings. Unless filed pursuant to Rule 462(b) as part of the Rule 462(b) Registration
Statement in accordance with the last sentence, the Company will file the Prospectus, in a form approved by the Representatives,
with the Commission pursuant to and in accordance with Rule 424(b) and Rule 430B and during the time period specified by Rule 424(b)
and Rule 430B. The Company will advise the Representatives promptly of any such filing pursuant to Rule 424(b) and provide satisfactory
evidence to the Representatives of such timely filing. |
| (ii) | Filing of Amendments; Response to Commission Requests. The Company, subject to Section
5(a)(iii) hereof, will comply with the requirements of Rule 430B and will promptly advise the Representatives of any proposal
to amend or supplement at any time the Registration Statement or any Statutory Prospectus and will not affect such amendment or
supplementation without the Representatives’ consent; and the Company will also advise the Representatives promptly of (A)
any amendment or supplementation of a Registration Statement or any Statutory Prospectus, (B) any request by the Commission or
its staff for any amendment to any Registration Statement, for any supplement to any Statutory Prospectus or for any additional
information, (C) the institution by the Commission of any stop order proceedings in respect of a Registration Statement or, to
the Company’s knowledge, the threatening of any proceeding for that purpose, and (D) the receipt by the Company of any notification
with respect to the suspension of the qualification of the Offered Shares in any jurisdiction or the institution or, to the Company’s
knowledge, the threatening of any proceedings for such purpose. The Company will use its best efforts to prevent the issuance of
any such stop order or the suspension of any such qualification and, if issued, to obtain as soon as possible the withdrawal thereof. |
| (iii) | General Disclosure Package. If the General Disclosure Package is being used to solicit offers
to buy the Offered Shares at a time when the Prospectus is not yet available to prospective purchasers and any event shall occur
or condition exist as a result of which it is necessary to amend or supplement the General Disclosure Package in order to make
the statements therein, in the light of the circumstances, not misleading, or if any event occurs or condition exists as a result
of which the General Disclosure Package conflicts with the information contained in the Registration Statement then on file, or
if, in the opinion of counsel for the Underwriters, it is necessary to amend or supplement the General Disclosure Package to comply
with applicable law, forthwith to prepare, file with the Commission and furnish, at its own expense, to the Underwriters and to
any dealer upon request, either amendments or supplements to the General Disclosure Package so that the statements in the General
Disclosure Package as so amended or supplemented will not, in the light of the circumstances when the General Disclosure Package
is delivered to a prospective purchaser, be misleading or so that the General Disclosure Package, as amended or supplemented, will
no longer conflict with the Registration Statement, or so that the General Disclosure Package, as amended or supplemented, will
comply with applicable law. |
| (iv) | Continued Compliance with Securities Laws. To comply with the Act and the Rules and Regulations
thereunder so as to permit the completion of the distribution of the Offered Shares as contemplated in this Agreement and in the
General Disclosure Package and the Prospectus. If, during such period after the first date of the public offering of the Offered
Shares as in the opinion of counsel for the Underwriters the Prospectus (or in lieu thereof the notice referred to in Rule 173(a))
is (or, but for the exception afforded by Rule 172, would be) required by law to be delivered in connection with sales by an Underwriter
or dealer, any event shall occur or condition exist as a result of which it is necessary, in the opinion of counsel for the Underwriters
or for the Company, to (i) amend the Registration Statement in order that the Registration Statement will 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, (ii) amend or supplement the General Disclosure Package or the Prospectus in order that the General Disclosure
Package or the Prospectus, as the case may be, will not include any untrue statement of a material fact or omit to state a material
fact necessary in order to make the statements therein not misleading in the light of the circumstances existing at the time it
is delivered to a purchaser or (iii) amend the Registration Statement or amend or supplement the General Disclosure Package or
the Prospectus, as the case may be, in order to comply with the requirements of the Act or the Rules and Regulations thereunder,
the Company will promptly (A) notify the Representatives of such event, (B) prepare any amendment or supplement as may be necessary
to correct such statement or omission or to make the Registration Statement, the General Disclosure Package or the Prospectus comply
with such requirements and, a reasonable amount of time prior to any proposed filing or use, furnish the Representatives with copies
of any such amendment or supplement and (C) file with the Commission any such amendment or supplement; provided, that the
Company shall not file or use any such amendment or supplement to which the Representatives or counsel for the Underwriters shall
reasonably object. The Company will give the Representatives notice of its intention to make any filings pursuant to the Exchange
Act or Rules and Regulations thereunder from the date of this Agreement to any Closing Date and will furnish the Representatives
with copies of any such documents a reasonable amount of time prior to such proposed filing, as the case may be, and will not file
or use any such document to which the Representatives or counsel for the Underwriters shall reasonably object, other than such
filings as are required to be made pursuant to the Exchange Act or the Rules and Regulations thereunder. |
| (v) | Rule 158. The Company will timely file such reports pursuant to the Exchange Act as are
necessary in order to make generally available to its stockholders as soon as practicable an earnings statement for the purposes
of, and to provide to the Underwriters the benefits contemplated by, the last paragraph of Section 11(a) of the Act. |
| (vi) | Furnishing of Registration Statements and Prospectuses. The Company will furnish to the
Representatives signed copies of each Registration Statement (including all exhibits thereto), each related Statutory Prospectus,
and, so long as a prospectus relating to the Offered Shares is (or but for the exemption in Rule 172 would be) required to be delivered
under the Act, the Prospectus and all amendments and supplements to such documents, in each case in such quantities as the Representatives
request. The Prospectus shall be so furnished on or prior to 3:00 P.M., New York time, on the business day following the execution
and delivery of this Agreement, or at such time as otherwise agreed to by the Representatives. All other documents shall be so
furnished as soon as available. The Company will pay the expenses of printing and distributing to the Underwriters all such documents. |
| (vii) | Blue Sky Qualifications. The Company will arrange for the qualification of the Offered Shares
for sale under the laws of such jurisdictions as the Representatives designate and will continue such qualifications in effect
so long as required for the distribution but in no event longer than one year. |
| (viii) | Reporting Requirements. The Company, during the period when a prospectus relating to the
Offered Shares is (or, but for the exception afforded by Rule 172, would be) required to be delivered under the Act, will file
all documents required to be filed with the Commission pursuant to the Exchange Act within the time periods required by the Exchange
Act and Rules and Regulations related thereto. |
| (ix) | Payment of Expenses. The Transaction Entities will pay all expenses incident to the performance
of their obligations under this Agreement and all the costs and expenses in connection with the offering of the Offered Shares
including but not limited to (A) any filing fees and other expenses incurred in connection with qualification of the Offered Shares
for sale under the laws of such jurisdictions as the Representatives designate and the preparation and printing of blue sky surveys
or legal investment surveys relating thereto, (B) costs and expenses related to the review by the Financial Industry Regulatory
Authority, Inc. (“FINRA”) of the Offered Shares (including filing fees and the fees and expenses of counsel
for the Underwriters relating to such review), (C) costs and expenses of legal counsel for the Underwriters incurred in connection
with this Agreement and the offering of the Offered Shares not to exceed $45,000, (D) costs and expenses of the Company relating
to investor presentations and any road show in connection with the offering and sale of the Offered Shares including, without limitation,
(1) any travel expenses of the Company’s officers and employees and (2) any other expenses of the Company, including all
actually and reasonably incurred costs and expenses of the Underwriters advanced on behalf of the Company relating to the investor
presentations and any roadshow in connection with the offering and sale of the Offered Shares, (E) the fees and expenses incident
to listing the Offered Shares and Conversion Shares on the NYSE MKT, (F) expenses incurred in distributing preliminary prospectuses
and the Prospectus (including any amendments and supplements thereto) to the Underwriters, (G) expenses incurred for preparing,
printing and distributing any Issuer Free Writing Prospectuses to investors or prospective investors, (H) stamp duties, similar
taxes or duties or other similar fees or charges, if any, incurred by the Underwriters in connection with the offering and sale
of the Offered Shares; provided, however that the Transaction Entities shall have no obligation to pay any costs
and expenses of the Underwriters relating to the investor presentations and any roadshow in connection with the offering and sale
of the Offered Shares, other than costs and expenses advanced on behalf of the Company in accordance with (D) above. |
| (x) | Use of Proceeds. The Company will use the net proceeds received in connection with the offering
and sale of the Offered Shares and will cause the Operating Partnership to use the net proceeds received in connection with the
issuance and sale of the Company Preferred OP Units in the manner described in the “Use of Proceeds” section of the
Registration Statement, the General Disclosure Package and the Prospectus, and, except as disclosed in the Registration Statement,
the General Disclosure Package and the Prospectus, the Company does not intend to use any of the proceeds from the sale of the
Offered Shares hereunder to repay any outstanding debt owed to any affiliate of any Underwriter. |
| (xi) | Absence of Manipulation. The Transaction Entities will not, and will cause each of its subsidiaries
and controlled affiliates not to, take, directly or indirectly, any action designed to or that would constitute or that might cause
or result in, stabilization or manipulation of the price of any securities of the Company to facilitate the sale or resale of the
Offered Shares. |
| (xii) | Listing. The Company will maintain the registration of the Offered Shares pursuant to Section
12(b) of the Exchange Act as of the Closing Date; and the Company will cause the Offered Shares to be listed on the NYSE MKT on
or prior to the Closing Date. |
| (xiii) | Maryland Law. The Company will use its best efforts to comply with all applicable requirements
under the MGCL with respect to the Offered Shares. |
| (xiv) | Sarbanes-Oxley Act. The Company will use its reasonable best efforts to comply with all
applicable provisions of the Sarbanes-Oxley Act. |
| (xv) | Transaction Entities Restrictions on Sale of Common and Preferred Stock. For the period
specified below (the “Lock-Up Period”), the Transaction Entities will not, directly or indirectly, take any
of the following actions with respect to their Common Stock, Series A Preferred Stock, Series B Preferred Stock, OP Units Series
A Preferred OP Units or Series B Preferred OP Units, as applicable, or any securities convertible into or exchangeable, exercisable
or redeemable for any of their Series A Preferred Stock, Series B Preferred Stock, Common Stock, LTIP Units, OP Units, Series A
Preferred OP Units or the Series B Preferred OP Units (collectively, the “Lock-Up Securities”): (A) offer, sell,
issue, contract to sell, pledge or otherwise dispose of Lock-Up Securities, (B) offer, sell, issue, contract to sell, contract
to purchase or grant any option, right or warrant to purchase Lock-Up Securities, (C) enter into any swap, hedge or any other agreement
that transfers, in whole or in part, the economic consequences of ownership of Lock-Up Securities, (D) establish or increase a
put equivalent position or liquidate or decrease a call equivalent position in Lock-Up Securities within the meaning of Section
16 of the Exchange Act or (E) file with the Commission a registration statement under the Act relating to Lock-Up Securities (except
for a registration statement on Form S-8 relating to the Company’s equity incentive plan, or any amendment thereto), or publicly
disclose the intention to take any such action, without the prior written consent of the Representatives; provided, however,
that the Lock-Up Period shall not apply to (A) the sale of Lock-Up Securities to the Underwriters, (B) the issuance by the Company
of shares of Common Stock upon the exercise of an option or a warrant or the conversion of a security outstanding on the First
Closing Date of which the Underwriters have been advised in writing (C) any Lock-Up Securities issued pursuant to existing equity
incentive plans of the Company disclosed in the Prospectus, (D) the issuance of Common Stock or securities exchangeable or exercisable
for or convertible into Common Stock (including OP Units and LTIP Units), in the aggregate not to exceed 10% of the number of shares
of Common Stock outstanding, on a fully diluted basis, as consideration for the acquisition of real estate assets provided, however,
that the recipients of shares of Common Stock or securities exchangeable or exercisable for or convertible into Common Stock issued
in connection with such an acquisition shall be required to agree in writing not to sell, offer, dispose of or otherwise transfer
any such shares during the remainder of the Lock-Up Period without the prior written consent of the Representatives (which consent
may be withheld at the sole discretion of the Representatives), (E) the issuance of LTIP Units pursuant to the Management Agreement,
and as disclosed in the General Disclosure Package and the Prospectus, (F) the filing of a shelf registration statement for, and
the issuance of common stock pursuant to, a distribution reinvestment plan; (G) with respect to the Company’s directors and
officers, the establishment of a trading plan pursuant to Rule 10b5-1 under the Exchange Act, for the transfer of shares of Common
Stock or Preferred Stock, provided that (i) such plan does not provide for the transfer of shares of Common Stock, Series A Preferred
Stock or Series B Preferred Stock during the Lock-Up Period and (ii) to the extent a public announcement or filing under the Exchange
Act, if any, is required of or voluntarily made regarding the establishment of such plan, such announcement or filing shall include
a statement to the effect that no transfer of shares of Common Stock, Series A Preferred Stock or Series B Preferred Stock may
be made under such plan during the Lock-Up Period; (H) the issuance of Common Stock in redemption of OP Units in accordance with
Section 8.04 of the OP Agreement, which OP Units (i) were held by BR-NPT Springing Entity, LLC or Bluerock Property Management,
LLC of December 31, 2015, (ii) are then held by KeyBank National Association (“KeyBank”), or (iii) were converted from
LTIP Units that are held by BRG Manager, LLC or Bluerock Multifamily Advisor, LLC as of the date of this Agreement and vested;
(I) the issuance of OP Units pursuant to conversions of LTIP Units in accordance with Section 4.05 of the OP Agreement, which LTIP
Units are held by BRG Manager, LLC or Bluerock Multifamily Advisor, LLC as of the date of this Agreement and vested, in connection
with a foreclosure by KeyBank under any pledge and security agreement between KeyBank and Manager and/or one or more Affiliates
of Manager or related loan or collateral agreement (a “Pledge and Security Agreement”), including any amendments thereof
in existence as of the date hereof or entered into on or before May 31, 2016; or (J) the offer and sale of shares of the Company’s
Series B Preferred Stock and warrants to purchase the Company’s Common Stock pursuant to the continuous public offering under
the Base Prospectus included in the Company’s Registration Statement on Form S-3 (No. 333-200359) dated December 19, 2014
and the Prospectus Supplement dated February 24, 2016, as may be further supplemented or amended, and the issuance to the Company
or Holdings LLC of Series B Preferred Units in connection with such sale of its Series B Preferred Stock. The “Lock-Up
Period” will commence on the date hereof and continue for 60 days after the date hereof or such earlier date that the
Representatives consent to in writing; provided, however, that if (1) during the last 17 days of the Lock-Up Period,
the Company releases earnings results or material news or a material event relating to the Company occurs or (2) prior to the expiration
of the Lock-Up Period, the Company announces that it will release earnings results during the 16-day period beginning on the last
day of the Lock-Up Period, then in each case the Lock-Up Period will be extended until the expiration of the 18-day period beginning
on the date of release of the earnings results or the occurrence of the materials news or material event, as applicable, unless
the Representatives waive, in writing, such extension. The Company will provide the Representatives with notice of any announcement
described in clause (2) of the preceding sentence that gives rise to an extension of the Lock-Up Period. |
| (xvi) | Qualification and Taxation as a REIT. The Company will use its best efforts to qualify for
taxation as a REIT under the Code for its taxable year ending December 31, 2016 and thereafter, unless the Board determines that
it is no longer in the best interests of the Company to continue to qualify as REIT. |
| (xvii) | Market Value. The aggregate market value of the Company’s outstanding voting and nonvoting
common equity computed pursuant to General Instruction I.B.1 of Form S-3 equaled or exceeded $75 million as of a date within 60
days prior to the date of filing of the Registration Statement. |
| (xviii) | Conversion Shares. (i) Following issuance and delivery of
the Series A Preferred Stock in accordance with this Agreement, the Series A
Preferred Stock will be redeemable at the option of holders of the Series A Preferred Stock
beginning October 21, 2022 as provided in Articles Supplementary, and any such redemption by a holder may be settled at the option
of the Company in cash, shares of Common Stock (the “Conversion Shares”), or a combination of cash and shares
of Common Stock in accordance with the Articles Supplementary; upon approval of the issuance of the Conversion Shares by the Board,
the Conversion Shares will be duly authorized and reserved for issuance upon such conversion by all necessary corporate action
and such Conversion Shares, when issued upon such redemption in accordance with the Articles Supplementary, will be validly issued
and will be fully paid and non-assessable, and will conform to the description of the Common Stock contained in the General Disclosure
Package and the Prospectus; (ii) no holder of the Conversion Shares will be subject to personal liability by reason of being such
a holder; (iii) the issuance of such Conversion Shares upon such redemption will not be subject to the preemptive or other similar
rights of any security holder of the Company; (iv) the Board will make any and all determinations concerning the future issuance
of the Conversion Shares; (v) the Company will not issue Conversion Shares unless the issuance thereof will comply with all applicable
laws and rules and regulations of the NYSE MKT or any exchange on which the Common Stock or Series A
Preferred Stock of the Company is listed; (vi) the Company will not issue Conversion Shares, unless upon such issuance the Conversion
Shares will be free of transfer restrictions under applicable law and freely tradable by non-affiliates; and (vii) the Conversion
Shares will be listed, pursuant to a supplemental listing application or otherwise, on the market or exchange where the Common
Stock is then registered. |
| (xix) | Amendment of Company Organizational Documents. To the extent necessary for the holders of
Series A Preferred Stock to exercise their voting rights as described in the Articles Supplementary, the Company will make all
necessary amendments to its Bylaws in order to effectuate such voting rights. |
| (xx) | Investment Company. The Company will not, and the Operating Partnership will not, be or
become, at any time prior to the expiration of three years after the date of this Agreement, an “investment company,”
as such term is defined in the Investment Company Act; provided, however, that this provision shall not be applicable and shall
have no legal force or effect in the event that the Company becomes deemed an “investment company” solely as a result
of the Commission amending, revising, rescinding or otherwise modifying the Investment Company Act, the rules and regulations promulgated
thereunder or the Commission’s interpretations and guidance relating thereto after the Closing Date. |
| (b) | The Manager agrees with the several Underwriters that: |
| (i) | Restriction on Sale of Securities. For the Lock-Up Period, and except in connection with
any Pledge and Security Agreement between the KeyBank and Manager and/or one or more Affiliates of the Manager, that is in existence
as of the date hereof, or is entered into or amended on or before May 31, 2016, the Manager will not, directly or indirectly, take
any of the following actions with respect to the Lock-Up Securities: (A) offer, sell, issue, contract to sell, pledge or otherwise
dispose of Lock-Up Securities, (B) offer, sell, issue, contract to sell, contract to purchase or grant any option, right or warrant
to purchase Lock-Up Securities, (C) enter into any swap, hedge or any other agreement that transfers, in whole or in part, the
economic consequences of ownership of Lock-Up Securities, (D) establish or increase a put equivalent position or liquidate or decrease
a call equivalent position in Lock-Up Securities within the meaning of Section 16 of the Exchange Act or (E) except as permitted
under Section 5(a)(xii) with respect to Manager’s capacity as external manager of the Company, file with the Commission
a registration statement under the Act relating to Lock-Up Securities, or publicly disclose the intention to take any such action,
without the prior written consent of the Representatives. |
Notwithstanding the foregoing,
if (1) during the last 17 days of the Lock-Up Period, the Company releases earnings results or material news or a material event
relating to the Company occurs or (2) prior to the expiration of the Lock-Up Period, the Company announces that it will release
earnings results during the 16-day period beginning on the last day of the Lock-Up Period, then in each case the Lock-Up Period
will be extended until the expiration of the 18-day period beginning on the date of release of the earnings results or the occurrence
of the materials news or material event, as applicable, unless the Representatives waive, in writing, such extension.
| (ii) | Reporting of Material Events. The Manager agrees that, during the period when the Prospectus
is required to be delivered under the Act or the Exchange Act, it shall notify the Representatives and the Transaction Entities
of the occurrence of any material events respecting its activities or condition, financial or otherwise, and the Manager will forthwith
supply such information to the Transaction Entities as shall be necessary in the opinion of counsel to the Transaction Entities
and the Underwriters for the Transaction Entities to prepare any necessary amendment or supplement to the Prospectus so that, as
so amended or supplemented, the Prospectus will not contain an untrue statement of a material fact or omit to state a material
fact necessary in order to make the statements therein, in the light of the circumstances existing at the time it is delivered
to a purchaser, not misleading. |
| (iii) | No Stabilization or Manipulation. Not to take, directly or indirectly, any action designed
to or that could reasonably be expected to cause or result in any stabilization or manipulation of the price of any securities
of the Company to facilitate the sale or resale of the Offered Shares. |
| (iv) | Investment Adviser. The Manager will not be or become, at any time prior to the expiration
of three years after the date of this Agreement, an “investment adviser,” as such term is defined in the Investment
Advisers Act of 1940, as amended (the “Investment Advisers Act”). |
| 6. | Free Writing Prospectuses. The Company represents and agrees that, unless it obtains the
prior consent of the Representatives, and each Underwriter represents and agrees that, unless it obtains the prior consent of the
Company and the Representatives, it has not made and will not make any offer relating to the Offered Shares that would constitute
an Issuer Free Writing Prospectus, or that would otherwise constitute a “free writing prospectus,” as defined in Rule
405, required to be filed with the Commission; provided, that such consent is deemed to have been given with respect to
each Issuer Free Writing Prospectus identified on Schedule B hereto and any “road show that is a written communication”
within the meaning of Rule 433(d)(8)(i) that has been reviewed and approved by the Representatives. Any such free writing prospectus
consented to by the Company and the Representatives is hereinafter referred to as a “Permitted Free Writing Prospectus.”
The Company represents that it has treated and agrees that it will treat each Permitted Free Writing Prospectus as an “issuer
free writing prospectus,” as defined in Rule 433, and has complied and will comply with the requirements of Rules 164 and
433 applicable to any Permitted Free Writing Prospectus, including timely Commission filing where required, legending and record
keeping. The Company represents that it has satisfied and agrees that it will satisfy the conditions in Rule 433 to avoid a requirement
to file with the Commission any Bona Fide Electronic Road Show. If at any time following the issuance of a Permitted Free Writing
Prospectus there occurred or occurs an event or development as a result of which such Permitted Free Writing Prospectus conflicted
or would conflict with the information contained in the Registration Statement, the General Disclosure Package or the Prospectus,
or included or would include an untrue statement of a material fact or omitted or would omit to state a material fact necessary
in order to make the statements therein, in the light of the circumstances existing at that subsequent time, not misleading, the
Company will promptly notify the Representatives and will promptly amend or supplement, at its own expense, such Permitted Free
Writing Prospectus to eliminate or correct such conflict, untrue statement or omission |
| 7. | Conditions of the Obligations of the Underwriters. The obligations of the several Underwriters
to purchase and pay for the Firm Shares on the First Closing Date and the Optional Shares to be purchased on each Optional Closing
Date will be subject to the accuracy of the representations and warranties of the Transaction Entities and the Manager herein (as
though made on such Closing Date), to the accuracy of the statements of the Transaction Entities and the Manager made pursuant
to the provisions hereof, to the performance by the Transaction Entities and the Manager of their obligations hereunder and to
the following additional conditions precedent: |
| (a) | Accountants’ Comfort Letters and CAO Certificates. |
| (i) | The Representatives shall have received letters, dated, respectively, the date hereof and each
Closing Date, of BDO USA, LLP in a form approved by the Underwriters and/or Bass, Berry & Sims PLC, confirming that they are
a registered public accounting firm and independent public accountants within the meaning of the Securities Laws and in form and
substance satisfactory to the Representatives, containing statements and information of the type ordinarily included in accountants’
“comfort letters” to underwriters with respect to financial statements and certain financial information of the Company
contained in the Registration Statement, the General Disclosure Package and the Prospectus (except that, in any letter dated a
Closing Date, the specified date referred to in the letter shall be a date no more than three (3) days prior to such Closing Date). |
| (ii) | Should the Representatives deem appropriate, the Representatives shall have received a certificate,
dated the date hereof, of Christopher J. Vohs, in his capacity as the Chief Accounting Officer and Principal Financial Officer
of the Company, substantially in the form of Annex I-A hereto. |
| (b) | Effectiveness of Registration Statement. If the Effective Time of an additional Registration
Statement (if any) is not prior to the execution and delivery of this Agreement, such Effective Time shall have occurred not later
than 4:00 P.M., New York time, on the date of this Agreement or, if earlier, the time the Prospectus is finalized and distributed
to any Underwriter, or shall have occurred at such later time as shall have been consented to by the Representatives. The Prospectus
shall have been filed with the Commission in accordance with Rule 424(b) under the Act and Section 5(a) hereof. Prior to
such Closing Date, no stop order suspending the effectiveness of a Registration Statement, Statutory Prospectus or the Prospectus
shall have been issued and no proceedings for that purpose shall have been instituted or, to the knowledge of the Company or the
Representatives, shall be contemplated by the Commission. |
| (c) | No Material Adverse Change. Subsequent to the execution and delivery of this Agreement,
there shall not have occurred (i) any change, or any development or event involving a prospective change, in the condition (financial
or otherwise), results of operations, business, earnings, properties or prospects of the Transaction Entities and their respective
Subsidiaries, taken as a whole, that, in the sole judgment of the Representatives, is material and adverse and makes it impractical
or inadvisable to market the Offered Shares; (ii) any change in either U.S. or international financial, political or economic conditions
or currency exchange rates or exchange controls the effect of which is such as to make it, in the judgment of the Representatives,
impractical to market or to enforce contracts for the sale of the Offered Shares, whether in the primary market or in respect of
dealings in the secondary market; (iii) any suspension or material limitation of trading in securities generally on the NYSE MKT,
or any setting of minimum or maximum prices for trading on such exchange; (iv) or any suspension of trading of any securities of
the Company on any national securities exchange or in the over-the-counter market; (v) any banking moratorium declared by any U.S.
federal or New York authorities; (vi) any major disruption of settlements of securities, payment, or clearance services in the
United States or any other country where such securities are listed; or (vii) any attack on, outbreak or escalation of hostilities
or act of terrorism involving the United States, any declaration of war by Congress or any other national or international calamity
or emergency if, in the judgment of the Representatives, the effect of any such attack, outbreak, escalation, act, declaration,
calamity or emergency is such as to make it impractical or inadvisable to market the Offered Shares or to enforce contracts for
the sale of the Offered Shares. |
| (d) | Opinion of Counsel for the Transaction Entities. The Representatives shall have received
an opinion, dated each Closing Date, of Kaplan, Voekler, Cunningham & Frank, PLC, counsel for the Transaction Entities, substantially
in the form attached hereto as Annex III-A and a letter substantially in the form attached hereto as Annex III-B. |
| (e) | Opinion of Maryland Counsel for Company. The Representatives shall have received an opinion,
dated each Closing Date, of Venable LLP, Maryland counsel for the Company, substantially in the form attached hereto as Annex IV. |
| (f) | Tax Opinion. The Representatives shall have received a tax opinion, dated each Closing Date,
of Vinson & Elkins, LLP, counsel for the Company, substantially in the form attached hereto as Annex V. |
| (g) | Opinion of Counsel for Underwriters. The Representatives shall have received from Bass,
Berry & Sims PLC, counsel for the Underwriters, such opinion or opinions, dated each Closing Date, with respect to such matters
as the Representatives may require. In rendering such opinion, Bass, Berry & Sims PLC, may (i) rely as to matters of fact (but
not as to legal conclusions), to the extent they deem proper, on certificates of responsible officers of the Transaction Entities,
their respective Subsidiaries, the Manager and of public officials and (ii) rely as to matters involving the application of the
laws of the state of Maryland upon the opinion of Venable LLP. |
| (h) | Company Officers’ Certificate. The Representatives shall have received a certificate,
dated each Closing Date, of the Chief Executive Officer of the Company and the Chief Accounting Officer of the Company, in his
capacity as the Principal Financial Officer of the Company, in which such officers shall state that: the representations and warranties
of the Transaction Entities in this Agreement are true and correct as of such date; each of the Transaction Entities has complied
with all agreements and satisfied all conditions on its part to be performed or satisfied hereunder at or prior to such Closing
Date; no stop order suspending the effectiveness of any Registration Statement has been issued and no proceedings for that purpose
have been instituted or, to the best of their knowledge and after reasonable investigation, are contemplated by the Commission;
the 462(b) Registration Statement (if any) satisfying the requirements of subparagraphs (1) and (3) of Rule 462(b) was timely filed
pursuant to Rule 462(b), including payment of the applicable filing fee in accordance with the applicable Rules and Regulations;
and, subsequent to the date of the most recent financial statements in the Registration Statement, the General Disclosure Package
and the Prospectus, there has been no change, nor any development or event involving a prospective change, in the condition (financial
or otherwise), results of operations, earnings, business, properties or prospects of the Transaction Entities and their respective
Subsidiaries, taken as a whole, that is material and adverse, except as set forth in the Registration Statement, the General Disclosure
Package and the Prospectus or as described in such certificate. |
| (i) | Manager Officer’s Certificate. The Representatives shall have received a certificate,
dated each Closing Date, of the Chief Executive Officer of the Manager in which such officer shall state that: the representations
and warranties of the Manager in this Agreement are true and correct as of such date and that the Manager has complied with all
agreements and satisfied all conditions on its part to be performed or satisfied hereunder at or prior to such Closing Date. |
| (j) | Lock-up Agreements. On or prior to the date hereof, the Representatives shall have received
a lock-up letter in the form of Annex II hereto executed by each of the persons listed on Schedule C hereto. |
| (k) | Rule 462(b) Registration Statement. In the event that a Rule 462(b) Registration Statement
is filed in connection with the offering contemplated by this Agreement, such Rule 462(b) Registration Statement shall have been
filed with the Commission and shall have become effective automatically upon such filing. |
| (l) | Company Good Standing. The Representatives shall have received a certificate of good standing
of the Company certified by the Maryland State Department of Assessments and Taxation as of a date within five (5) business days
of the First Closing Date. |
| (m) | Operating Partnership Good Standing. The Representatives shall have received a certificate
of good standing of the Operating Partnership certified by the Secretary of State of the State of Delaware as of a date within
five (5) business days of the First Closing Date. |
| (n) | Manager Good Standing. The Representatives shall have received a certificate of good standing
of the Manager certified by the Secretary of State of the State of Delaware as of a date within five (5) business days of the First
Closing Date. |
| (o) | Subsidiary Good Standings. The Representatives shall have received a certificate of good
standing certified by the Secretary of State (or equivalent governmental authority) of the state of incorporation or formation
as of a recent date, for each entity listed on Schedule D hereto. |
| (p) | Secretary’s Certificate of the Company. The Representatives shall have received a
certificate of the secretary of the Company certifying resolutions of the board of directors of the Company approving the Underwriting
Agreement and the transactions contemplated thereby. |
| (q) | Secretary’s Certificate of the Manager. The Representatives shall have received a
certificate of the secretary of the Manager certifying resolutions of the Manager’s managing member approving the Underwriting
Agreement and the transactions contemplated thereby. |
| (r) | General Partner Certificate of the Operating Partnership. The Representatives shall have
received a certificate of the general partner of the Operating Partnership certifying resolutions of the Operating Partnership
approving the Underwriting Agreement and the transactions contemplated thereby. |
| (s) | FINRA Approval. The Representatives shall have received any required clearance letter from
the Corporate Finance Department of FINRA with respect to the offering. |
| (t) | Listing. An application for the listing of the Offered Shares shall have been approved for
listing to the NYSE MKT prior to the Closing Date. |
| (u) | Amendment to OP Agreement. The Third Amendment to the OP Agreement shall be in full force
and effect as of the Closing Date. |
The Transaction Entities will
furnish the Representatives with such conformed copies of such opinions, certificates, letters and documents as the Representatives
reasonably request. The Representatives may in their sole discretion waive on behalf of the Underwriters compliance with any conditions
to the obligations of the Underwriters hereunder, whether in respect of an Optional Closing Date or otherwise.
| 8. | Indemnification and Contribution. |
| (a) | Indemnification of Underwriters by the Transaction Entities. Each of the Transaction Entities
will, jointly and severally, indemnify and hold harmless each Underwriter, its partners, members, directors, officers, employees,
agents, affiliates and each person, if any, who controls such Underwriter within the meaning of Section 15 of the Act or Section
20 of the Exchange Act (each, an “Indemnified Party”), against any and all losses, claims, damages or liabilities,
joint or several, to which such Indemnified Party may become subject, under the Act, the Exchange Act, other Federal or state statutory
law or regulation or otherwise, insofar as such losses, claims, damages or liabilities (or actions in respect thereof) arise out
of or are based upon any untrue statement or alleged untrue statement of any material fact contained in any part of any Registration
Statement at any time, any Statutory Prospectus as of any time, the Prospectus or any Issuer Free Writing Prospectus, or arise
out of or are based upon the omission or alleged omission of a material fact required to be stated therein or necessary to make
the statements therein not misleading, and will reimburse each Indemnified Party for any legal or other expenses reasonably incurred
by such Indemnified Party in connection with investigating or defending against any loss, claim, damage, liability, action, litigation,
investigation or proceeding whatsoever (whether or not such Indemnified Party is a party thereto), whether threatened or commenced,
and in connection with the enforcement of this provision with respect to any of the above as such expenses are incurred; provided,
however, that neither of the Transaction Entities will be liable in any such case to the extent that any such loss, claim,
damage or liability arises out of or is based upon an untrue statement or alleged untrue statement in or omission or alleged omission
from any of such documents in reliance upon and in conformity with written information furnished to the Company by any Underwriter
through the Representatives specifically for use therein, it being understood and agreed that such information furnished by any
Underwriter consists only of the information described as such in Section 8(b) below. |
| (b) | Indemnification of Company, Directors and Officers. Each Underwriter will severally and
not jointly indemnify and hold harmless each of the Transaction Entities, their directors and each of their officers who signs
a Registration Statement and each person, if any, who controls either of the Transaction Entities within the meaning of Section
15 of the Act or Section 20 of the Exchange Act (each, an “Underwriter Indemnified Party”), against any losses,
claims, damages or liabilities to which such Underwriter Indemnified Party may become subject, under the Act, the Exchange Act,
other Federal or state statutory law or regulation or otherwise, insofar as such losses, claims, damages or liabilities (or actions
in respect thereof) arise out of or are based upon any untrue statement or alleged untrue statement of any material fact contained
in any part of any Registration Statement at any time, any Statutory Prospectus as of any time, the Prospectus or any Issuer Free
Writing Prospectus, or arise out of or are based upon the omission or the alleged omission of a material fact required to be stated
therein or necessary to make the statements therein not misleading, in each case to the extent, but only to the extent, that such
untrue statement or alleged untrue statement or omission or alleged omission was made in reliance upon and in conformity with written
information furnished to either of the Transaction Entities by such Underwriter through the Representatives specifically for use
therein, and will reimburse any legal or other expenses reasonably incurred by such Underwriter Indemnified Party in connection
with investigating or defending against any such loss, claim, damage, liability, action, litigation, investigation or proceeding
whatsoever (whether or not such Underwriter Indemnified Party is a party thereto), whether threatened or commenced, based upon
any such untrue statement or omission, or any such alleged untrue statement or omission as such expenses are incurred, it being
understood and agreed that the only such information furnished by any Underwriter consists of the following information in the
Prospectus furnished on behalf of each Underwriter: the third, seventh, eleventh and thirteenth full paragraphs under the caption
“Underwriting” and under the caption “Other Relationships,” in each case, only to the extent that such
statements relate only to the Underwriters. |
| (c) | Actions against Parties; Notification. Promptly after receipt by an indemnified party of
notice of the commencement of any action against such indemnified party, such indemnified party will, if a claim in respect thereof
is to be made against the indemnifying party under subsections (a), (b) or (c) above, notify the indemnifying party of the commencement
thereof; but the failure to notify the indemnifying party shall not relieve it from any liability that it may have under subsections
(a), (b) or (c) above except to the extent that it has been materially prejudiced (through the forfeiture of substantive rights
or defenses) by such failure; and provided further that the failure to notify the indemnifying party shall not relieve
it from any liability that it may have to an indemnified party otherwise than under subsections (a), (b) or (c) above. In case
any such action is brought against any indemnified party and it notifies the indemnifying party of the commencement thereof, the
indemnifying party will be entitled to participate therein and, to the extent that it may wish, jointly with any other indemnifying
party similarly notified, to assume the defense thereof, with counsel satisfactory to such indemnified party (who shall not, except
with the consent of the indemnified party, be counsel to the indemnifying party), and after notice from the indemnifying party
to such indemnified party of its election so to assume the defense thereof, the indemnifying party will not be liable to such indemnified
party under this Section 8(c) for any legal or other expenses subsequently incurred by such indemnified party in connection
with the defense thereof other than reasonable costs of investigation. In any such proceeding, any indemnified party shall have
the right to retain its own counsel, but the fees and expenses of such counsel shall be at the expense of such indemnified party
unless (i) the indemnifying party and the indemnified party shall have mutually agreed to the contrary; (ii) the indemnifying party
has failed within a reasonable time to retain counsel reasonably satisfactory to the indemnified party; (iii) the indemnified party
shall have reasonably concluded that there may be legal defenses available to it that are different from or in addition to those
available to the indemnifying party; or (iv) the named parties in any such proceeding (including any impleaded parties) include
both the indemnifying party and the indemnified party and representation of both parties by the same counsel would be inappropriate
due to actual or potential differing interest between them. No indemnifying party shall, without the prior written consent of the
indemnified party, effect any settlement of any pending or threatened action in respect of which any indemnified party is or could
have been a party and indemnity could have been sought hereunder by such indemnified party unless such settlement (i) includes
an unconditional release of such indemnified party from all liability on any claims that are the subject matter of such action
and (ii) does not include a statement as to, or an admission of, fault, culpability or a failure to act by or on behalf of an indemnified
party. |
| (d) | Contribution. If the indemnification provided for in this
Section 8 is unavailable or insufficient to hold harmless an indemnified party under subsections (a), (b) or (c) above,
then each indemnifying party shall contribute to the amount paid or payable by such indemnified party as a result of the losses,
claims, damages or liabilities referred to in subsections (a), (b) or (c) above (i) in such proportion as is appropriate to reflect
the relative benefits received by the Transaction Entities on the one hand and by the Underwriters on the other hand from the offering
of the Offered Shares or (ii) if the allocation provided by clause (i) above is not permitted by applicable law, in such proportion
as is appropriate to reflect not only the relative benefits referred to in clause (i) above but also the relative fault of the
Company, on the one hand, and the Underwriters, on the other, in connection with the statements or omissions which resulted in
such losses, claims, damages or liabilities as well as any other relevant equitable considerations. The relative benefits received
by the Transaction Entities on the one hand and by the Underwriters on the other hand shall be deemed to be in the same proportion
as the total net proceeds from the offering (before deducting expenses) received by the Company bear to the total underwriting
discounts and commissions received by the Underwriters. The relative fault shall be determined by reference to, among other things,
whether the untrue or alleged untrue statement of a material fact or the omission or alleged omission to state a material fact
relates to information supplied by the Company or the Underwriters and the parties’ relative intent, knowledge, access to
information and opportunity to correct or prevent such untrue statement or omission. The amount paid by an indemnified party as
a result of the losses, claims, damages or liabilities referred to in the first sentence of this Section 8(d) shall be deemed
to include any legal or other expenses reasonably incurred by such indemnified party in connection with investigating or defending
any action or claim which is the subject of this Section 8(d). Notwithstanding the provisions of this Section 8(d),
no Underwriter shall be required to contribute any amount in excess of the amount by which the total price at which the Series
A Preferred Stock underwritten by it and distributed to the public exceeds the amount of any damages
which such Underwriter has otherwise been required to pay by reason of such untrue or alleged untrue statement or omission or alleged
omission. No person guilty of fraudulent misrepresentation (within the meaning of Section 11(f) of the Act) shall be entitled to
contribution from any person who was not guilty of such fraudulent misrepresentation. The Underwriters’ obligations in this
Section 8(d) to contribute are several in proportion to their respective underwriting obligations and not joint. The Transaction
Entities and the Underwriters agree that it would not be just and equitable if contribution pursuant to this Section 8(d)
were determined by pro rata allocation (even if the Underwriters were treated as one entity for such purpose) or by any other method
of allocation which does not take account of the equitable considerations referred to in this Section 8(d). |
| 9. | Default of Underwriters. If any Underwriter or Underwriters default in their obligations
to purchase Offered Shares hereunder on either the First Closing Date or any Optional Closing Date and the aggregate number of
Offered Shares that such defaulting Underwriter or Underwriters agreed but failed to purchase does not exceed 10% of the total
number of Offered Shares that the Underwriters are obligated to purchase on such Closing Date, the Representatives may make arrangements
satisfactory to the Company for the purchase of such Offered Shares by other persons, including any of the Underwriters, but if
no such arrangements are made by such Closing Date, the non-defaulting Underwriters shall be obligated severally, in proportion
to their respective commitments hereunder, to purchase the Offered Shares that such defaulting Underwriters agreed but failed to
purchase on such Closing Date. If any Underwriter or Underwriters so default and the aggregate number of Offered Shares with respect
to which such default or defaults occur exceeds 10% of the total number of Offered Shares that the Underwriters are obligated to
purchase on such Closing Date and arrangements satisfactory to the Representatives and the Company for the purchase of such Offered
Shares by other persons are not made within 36 hours after such default, this Agreement will terminate without liability on the
part of any non-defaulting Underwriter or the Company, except as provided in Section 10 hereof (provided that if such default
occurs with respect to Optional Shares after the First Closing Date, this Agreement will not terminate as to the Firm Shares or
any Optional Shares purchased prior to such termination). As used in this Agreement, the term “Underwriter”
includes any person substituted for an Underwriter under this Section 9. Nothing herein will relieve a defaulting Underwriter
from liability for its default. |
| 10. | Survival of Certain Representations and Obligations. The respective indemnities, agreements,
representations, warranties and other statements of the Transaction Entities, the Manager or their respective officers and of the
several Underwriters set forth in or made pursuant to this Agreement will remain in full force and effect, regardless of any investigation,
or statement as to the results thereof, made by or on behalf of any Underwriter, the Transaction Entities, the Manager or any of
their respective representatives, officers or directors or any controlling person, and will survive delivery of and payment for
the Offered Shares. If the purchase of the Offered Shares by the Underwriters is not consummated for any reason other than solely
because of the termination of this Agreement pursuant to Section 9 hereof, the Company will reimburse the Underwriters for
all out-of-pocket expenses (including fees and disbursements of counsel) reasonably incurred by them in connection with the offering
of the Offered Shares, and the respective obligations of the Transaction Entities and the Manager, on the one hand, and the Underwriters,
on the other hand, pursuant to Section 8 hereof shall remain in effect. In addition, if any Offered Shares have been purchased
hereunder, the representations and warranties in Sections 2 through 3 and all obligations under Section 5
shall also remain in effect. |
| 11. | Notices. All communications hereunder will be in writing and, if sent to the Underwriters,
will be mailed or delivered and confirmed to the Representatives, c/o Wunderlich Securities, Inc., 1530 Wilson Blvd., Suite 430,
Arlington, VA 22209, Attention: N. David Doyle, with a copy to Bass, Berry & Sims PLC, 150 Third Avenue South, Suite 2800,
Nashville, TN 37201, Attention: Lori B. Morgan, or, if sent to the Transaction Entities or the Manager, will be mailed or delivered
and confirmed to it at c/o Bluerock Residential Growth REIT, Inc., 712 Fifth Avenue, 9th Floor, New York, NY 10019, Attention:
Michael L. Konig, with a copy to Kaplan, Voekler, Cunningham & Frank, PLC, 1401 East Cary Street, Richmond, Virginia 23239,
Attention: Richard P. Cunningham, Jr.; provided, however, that any notice to an Underwriter pursuant to Section
9 will be mailed or delivered and confirmed to such Underwriter. |
| 12. | Successors. This Agreement will inure to the benefit of and be binding upon the parties
hereto and their respective successors and the officers, directors and controlling persons referred to in Section 9, and
no other person will have any right or obligation hereunder. |
| 13. | Representation of Underwriters. The Representatives will act for the several Underwriters
in connection with this financing, and any action under this Agreement taken by the Representatives will be binding upon all the
Underwriters. By participating in this offering, each Underwriter agrees that it, each of its affiliates participating in this
offering as underwriter or financial intermediary and each controlling person of it and each such participating affiliate are bound
by the Agreement Regarding Oral Due Diligence and currently in effect between the Representatives and the accounting firm or firms
that participate in oral due diligence in this offering. |
| 14. | Counterparts. This Agreement may be executed in any number of counterparts, each of which
shall be deemed to be an original, but all such counterparts shall together constitute one and the same Agreement. |
| 15. | Headings. The headings herein are inserted for convenience of reference only and are not
intended to be part of, or to affect the meaning or interpretation of, this Agreement. |
| 16. | Entire Agreement. This Agreement represents the entire agreement between the Transaction
Entities and the Manager, on the one hand, and the Underwriters, on the other, with respect to the preparation of any Registration
Statement, the General Disclosure Package, the Prospectus, the conduct of the offering, and the purchase and sale of the Offered
Shares. |
| 17. | Absence of Fiduciary Relationship. The Transaction Entities and the Manager each acknowledge
and agree that: |
| (a) | No Other Relationship. The Underwriters have been retained solely to act as underwriters
in connection with the sale of Offered Shares and that no fiduciary, advisory or agency relationship between the Transaction Entities
and the Manager on the one hand, and the Underwriters on the other has been created in respect of any of the transactions contemplated
by this Agreement or the Prospectus, irrespective of whether the Underwriters have advised or is advising either of the Transaction
Entities or the Manager on other matters; |
| (b) | Arms’ Length Negotiations. The price of the Offered Shares set forth in this Agreement
was established by the Company following discussions and arms’ length negotiations with the Underwriters, and the Transaction
Entities and Manager are capable of evaluating and understanding and understands and accepts the terms, risks and conditions of
the transactions contemplated by this Agreement; |
| (c) | Absence of Obligation to Disclose. The Transaction Entities and the Manager have been advised
that the Underwriters and their affiliates are engaged in a broad range of transactions which may involve interests that differ
from those of the Transaction Entities and the Manager, and that the Underwriters have no obligation to disclose such interests
and transactions to Transaction Entities and the Manager by virtue of any fiduciary, advisory or agency relationship; and |
| (d) | Waiver. Each of the Transaction Entities and the Manager waives, to the fullest extent permitted
by law, any claims they may have against the Underwriters for breach of fiduciary duty or alleged breach of fiduciary duty and
agree that the Underwriters shall have no liability (whether direct or indirect) to either of the Transaction Entities or the Manager
in respect of such a fiduciary duty claim or to any person asserting a fiduciary duty claim on behalf of or in right of the Transaction
Entities or the Manager, including stockholders, holders of membership interests, employees or creditors of the Transaction Entities
or the Manager. |
| 18. | Trial by Jury. Each of the Transaction Entities and the Manager (on its behalf and,
to the extent permitted by applicable law, on behalf of its stockholders and affiliates) and each of the Underwriters hereby irrevocably
waives, to the fullest extent permitted by applicable law, any and all right to trial by jury in any legal proceeding arising out
of or relating to this Agreement or the transactions contemplated hereby. |
| 19. | Applicable Law. This Agreement shall be governed by, and construed in accordance with, the
laws of the State of New York. |
| 20. | Jurisdiction. Each of the Transaction Entities and the Manager hereby submits to the non-exclusive
jurisdiction of the Federal and state courts in the Borough of Manhattan in The City of New York in any suit or proceeding arising
out of or relating to this Agreement or the transactions contemplated hereby. Each of the Transaction Entities and the Manager
irrevocably and unconditionally waives any objection to the laying of venue of any suit or proceeding arising out of or relating
to this Agreement or the transactions contemplated hereby in Federal and state courts in the Borough of Manhattan in The City of
New York and irrevocably and unconditionally waives and agrees not to plead or claim in any such court that any such suit or proceeding
in any such court has been brought in an inconvenient forum. |
| 21. | Termination. Until the First Closing Date, this Agreement may be terminated by the Representatives
by giving notice (in the manner prescribed by Section 11 hereof) to the Company, if (i) the Company shall have failed, refused
or been unable, at or prior to the First Closing Date, to perform any agreement on its part to be performed hereunder unless the
failure to perform any agreement is due to the default or omission by any Underwriter; (ii) any other condition of the obligations
of the Underwriters hereunder is not fulfilled; (iii) trading in securities generally on the NYSE, NYSE MKT, or Nasdaq shall have
been suspended or minimum or maximum prices shall have been established on either of such exchanges or such market by the Commission
or by such exchange or other regulatory body or governmental authority having jurisdiction; (iv) trading or quotation in any of
the Company’s securities shall have been suspended or materially limited by the Commission or by the NYSE MKT, NYSE or Nasdaq
or other regulatory body of governmental authority having jurisdiction; (v) a general banking moratorium has been declared by Federal
or New York authorities; (vi) a material disruption in securities settlement, payment or clearance services in the United States
shall have occurred; (vii) there shall have been any material adverse change in general economic, political or financial conditions
in the United States or in international conditions on the financial markets in the United States, in each case, the effect of
which is such as to make it, in the Representatives’ reasonable judgment, inadvisable to proceed with the delivery of the
Securities; or (viii) any attack on, outbreak or escalation of hostilities, declaration of war or act of terrorism involving the
United States or any other national or international calamity or emergency has occurred if, in the Representatives’ reasonable
judgment, the effect of any such attack, outbreak, escalation, declaration, act, calamity or emergency makes it impractical or
inadvisable to proceed with the completion of the public offering or the delivery of the Securities. Any termination of this Agreement
pursuant to this Section 21 shall be without liability on the part of the Company or any Underwriter, except as otherwise
provided in Sections 5(a), 7, 8 and 9 hereof. |
If the foregoing is in accordance with
the Representatives’ understanding of our agreement, kindly sign and return to the Company one of the counterparts hereof,
whereupon it will become a binding agreement among the Transaction Entities, the Manager and the several Underwriters in accordance
with its terms.
[Signature Page Follows]
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Very truly yours, |
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|
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BLUEROCK RESIDENTIAL GROWTH REIT, INC. |
| |
|
|
| |
By: |
/s/ R. Ramin Kamfar |
| |
|
Name: R. Ramin Kamfar |
| |
|
Title: Chief Executive Officer |
| |
|
|
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BLUEROCK RESIDENTIAL HOLDINGS, L.P. |
| |
|
|
| |
By: Bluerock Residential Growth REIT, Inc. |
| |
Its: General Partner |
| |
|
|
| |
By: |
/s/ R. Ramin Kamfar |
| |
|
Name: R. Ramin Kamfar |
| |
|
Title: Chief Executive Officer |
| |
|
|
| |
BRG MANAGER, LLC |
| |
By: Bluerock Real Estate, L.L.C. |
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Its: Sole Member |
| |
|
|
| |
By: |
/s/ R. Ramin Kamfar |
| |
|
Name: R. Ramin Kamfar |
| |
|
Title: Chief Executive Officer |
[Signature Page to Underwriting Agreement]
The foregoing Agreement is hereby confirmed and accepted as
of the date first above written.
Acting on behalf of itself and as the
Representatives of the several Underwriters.
| |
WUNDERLICH SECURITIES, INC. |
| |
|
|
| |
By: |
/s/ Chad Champion |
| |
|
Name: Chad Champion |
| |
|
Title: Managing Director |
| |
|
|
| |
COMPASS POINT RESEARCH & TRADING, LLC |
| |
|
|
| |
By: |
/s/ Burke Hayes |
| |
|
Name: Burke Hayes |
| |
|
Title: Managing Director |
[Signature Page to Underwriting Agreement]
SCHEDULE
A
| Underwriter | |
Number of Firm Shares | |
| Wunderlich Securities, Inc. | |
| 800,000 | |
| Compass Point Research & Trading, LLC | |
| 800,000 | |
| FBR Capital Markets & Co. | |
| 200,000 | |
| Janney Montgomery Scott, LLC | |
| 200,000 | |
| Total: | |
| 2,000,000 | |
