Document:

ex1011.htm

    Exhibit 10.11

     

    SECURED
PROMISSORY NOTE

    

    $3,200,000

     

    December
3, 2009

    

    For value
received, BEMT
SPRINGHOUSE,
LLC, a Delaware
limited liability company (the “Borrower”), hereby promises to pay to the order
of BLUEROCKSPECIAL OPPORTUNITY + INCOME FUND,
LLC, a Delaware limited liability company (together with its successors
and assigns, the “Lender”) the principal sum of Three Million, Two Hundred Thousand
Dollars ($3,200,000), plus interest, fees and costs, in accordance with
the terms and conditions of this promissory note (the “Note”).  The
Note shall accrue interest at the rate of the greater of:  (a) 30-Day
LIBOR plus 5.00%, or (b) seven percent (7.0%) per annum, compounded
monthly.  All outstanding principal and interest shall be due and
payable on June 3, 2010 (the “Due Date”).

    

    Commencing
on January 1, 2010, and on the first day of each month thereafter, until the
Note is fully paid, Borrower shall pay to Lender monthly all distributions,
proceeds, income, payments, dividends and capital repayments that Borrower
receives from any and all the membership interests that it owns in BR
Springhouse Managing Member, LLC, a Delaware limited liability company and any
income, distributions, dividends, proceeds and capital repayments that Borrower
receives from any other source, to the extent of any interest due for the month
plus any accrued interest and fees, if any.  All payments hereunder
shall be applied, first, to the payment of fees, interest and other obligations
(other than principal) hereunder in such order and priority as Lender shall
determine in its discretion, and second, to the payment of
principal.

    

    This Note
may be prepaid in whole or in part at any time or from time to time without
penalty.  If this Note is not paid in full on the Due Date, then, at
the Lender’s election, all amounts not paid when due at the Due Date shall
become part of principal and shall thereafter accrue interest at the rate of
thirteen percent (13%) per annum, compounded monthly.  In the event of
an acceleration of the maturity of this Note (as described below), this Note
shall become immediately due and payable without presentation, demand, protest
or notice of dishonor, all of which are hereby waived by the Borrower.  The Borrower also
shall pay and this Note shall evidence Borrower’s obligation to pay Lender any
and all actual costs incurred by Lender for the interpretation, performance,
exercise, enforcement or protection of its rights hereunder and for the
collection of Borrower’s obligations under this Note and for the protection of
the security for this Note, including reasonable attorneys’ fees and expenses,
and all costs to collect, possess, preserve, repair and liquidate the collateral
given by Borrower to secure the obligations owed to Lender.

     

    If the
rate of interest required to be paid hereunder exceeds the maximum rate
permitted by law, such rate of interest shall be automatically reduced to the
maximum rate permitted by law and any amounts collected in excess of the
permissible amount shall be returned to Borrower or applied to principal all
pursuant to the terms of and as further set forth herein.  To the
fullest extent permitted by law, interest shall continue to accrue after the
filing by or against Borrower of any petition seeking any relief in bankruptcy
or under any act or law pertaining to insolvency or debtor relief, whether
state, federal or foreign.

    

    If
Borrower makes any payment to Lender that is subsequently invalidated, declared
to be fraudulent or preferential, set aside or required to be repaid to a
trustee, receiver or any other party, then, to the extent of such payment, the
obligation intended to be satisfied shall be revived and continued in full force
and effect as if such payment had not been received by Lender.

     

    The
Borrower covenants, warrants, and represents to the Lender that:

    

    
      	
               
      

            	
              (i)

            	
              the
      execution, delivery and performance of this Note have been duly
      authorized;

            

    

    

    
      	
               
      

            	
              (ii)

            	
              this
      Note is enforceable against the Borrower in accordance with its
      terms;

            

    

     

    
      	
            	
              (iii)

            	
              

                the
      execution and delivery of this Note does not violate or constitute a
      breach of any agreement to which the Borrower is a party;
      and

              

            

    

     

     

     

    
 

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    
      	
               
      

            	
              (iv)

            	
              the
      loan evidenced by this Note is for commercial purposes and will not be
      used in any consumer transaction.

            

    

    

    Payment
of this Note is secured by the pledge of the Collateral as that term is defined
in the Pledge and Security Agreement, of even date hereof, among the Borrower
and the Lender and the Pledge and Security Agreement, of even date hereof, among
the Lender, Bluerock Enhanced Multifamily Holdings, L.P. and Borrower, of even
date herewith (collectively, the “Pledge Agreements”).

     

    The
occurrence of any one or more of the following shall constitute an Event of
Default under this Note:

     

     

    
      	
            	
              (a)

            	
              

                

                  the
      Borrower fails to pay Lender any interest, principal or other money due
      and payable by Borrower to Lender under this Note on or before the due
      dates thereof;

                

              

            

    

     

    
      	
            	
              (b)

            	
              

                the
      failure of Borrower to comply with any material covenant set forth herein
      and the expiration of any applicable notice and cure provisions contained
      herein;

              

            

    

     

    
      	
               
      

            	
              (c)

            	
              the
      occurrence of an Event of Default under the Pledge Agreements and the
      expiration of any applicable notice and cure provisions contained
      therein;

            

    

    

    
      	
               
      

            	
              (d)

            	
              the
      Borrower terminates its existence, voluntarily or involuntarily, allows
      the appointment of a receiver for any part of its property or makes an
      assignment for the benefit of creditors;
or

            

    

    

    
      	
               
      

            	
              (e)

            	
              the
      Borrower does any of the following:

            

    

     

    
      	

            	
              (i)
      admits in writing its inability to pay its debts generally as they become
      due;

            

    

     

    
      	
               
      

            	
              (ii)
      consents to, or acquiesce in, the appointment of a receiver, liquidator or
      trustee of itself or of the whole or any substantial part of its
      properties or assets;

            

    

     

    
      	
               
      

            	
              (iii)
      files a petition or answer seeking reorganization, arrangement,
      composition, readjustment, liquidation, dissolution or similar relief
      under the Federal Bankruptcy laws or any other applicable
    law;

            

    

     

    
      	
               
      

            	
              (iv)
      has a court of competent jurisdiction enter an order, judgment or decree
      appointing a receiver, liquidator or trustee of Borrower, or of the whole
      or any substantial part of the property or assets of Borrower, and such
      order, judgment or decree shall remain unvacated or not set aside or
      unstayed for sixty (60) days;

            

    

     

    
      	
               
      

            	
              (v)
      has a petition filed against it seeking reorganization, arrangement,
      composition, readjustment, liquidation, dissolution or similar relief
      under the Federal Bankruptcy laws or any other applicable law and such
      petition shall remain undismissed for sixty (60)
  days;

            

    

     

    
      	
               
      

            	
              (vi)
      has, under the provisions of any other law for the relief or aid of
      debtors, any court of competent jurisdiction assume custody or control of
      Borrower or of the whole or any substantial part of its property or assets
      and such custody or control shall remain unterminated or unstayed for
      sixty (60) days;

            

    

     

    
      	
               
      

            	
              (vii)
      has an attachment or execution levied against any substantial portion of
      the property of Borrower which is not discharged or dissolved by a bond
      within thirty (30) days; or

            

    

     

    
      	
               
      

            	
              (viii)
      has any materially adverse change in its financial condition since the
      date of this Note.

            

    

     

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    Upon the
occurrence of an Event of Default, the Lender may at any time thereafter
exercise any one or more of the following remedies:

    

    
      	
               
      

            	
              (a)

            	
              the
      Lender may accelerate the Due Date and declare the unpaid principal
      balance, accrued but unpaid interest and all other amounts payable
      hereunder at once due and payable,

            

    

    

    
      	
               
      

            	
              (b)

            	
              the
      Lender may set off the amount due against any and all accounts, credits,
      money, securities or other property held by or in the possession of the
      Lender;

            

    

    

    
      	
               
      

            	
              (c)

            	
              the
      Lender may exercise any of its other rights, powers and remedies available
      at law or in equity.  All of the rights and remedies of the
      Lender under this Note, at law or in equity are cumulative, and the
      exercise by the Lender of any one or more of such rights and remedies
      shall not preclude the simultaneous or later exercise by the Lender of any
      or all such other rights and
remedies.

            

    

    

    The
enumeration of Lender’s rights and remedies herein is not intended to be
exhaustive and the exercise by Lender of any right or remedy shall not preclude
the exercise of any other rights or remedies, all of which shall be cumulative,
and shall be in addition to any other right or remedy given hereunder or under
the Pledge Agreements or that may now or hereafter exist in law or in equity or
by suit or otherwise.

    

    This
Note shall be governed by and construed in accordance with the internal laws of
the State of New York, notwithstanding any conflicts-of-law provision to the
contrary.  The Borrower and Lender waive their respective rights to a
jury trial to the maximum extent permitted by law for any claim or cause of
action arising out of this Note.  Each party has reviewed this waiver
with its counsel.

    

    Except as
specifically provided herein and except as prohibited by law, Borrower hereby
waives presentment, demand, protest and notice of dishonor, as well as the
benefit of any exemption under the Homestead and all other exemption or
insolvency laws as to this debt.

     

    Lender’s
failure at any time to require strict performance by Borrower hereunder shall
not waive or affect any right of Lender at any time thereafter to demand strict
performance, and any waiver of any Event of Default by Lender shall not waive or
affect any other Event of Default, whether prior or subsequent thereto, and
whether of the same or a different type.  None of the provisions of
this Note shall be deemed waived by any act, knowledge or course of dealing of
Lender, or its agents, except by an instrument in writing signed by Lender and
directed to Borrower specifying such waiver.

     

    All
notices, requests, demands and other communications with respect hereto shall be
in writing and shall be delivered by hand against a receipt, sent prepaid by
FedEx (or a comparable overnight delivery service) or sent by the United States
mail, certified, postage prepaid, return receipt requested, at the addresses
designated below.  Any notice, request, demand or other communication
delivered or sent in the manner aforesaid shall be deemed given or made (as the
case may be) only when actually received by the intended
recipient.  Rejection or other refusal to accept or the inability to
deliver because of a changed address of which no written notice was given shall
be deemed to be receipt of the notice, request, demand or other communication
sent as of the date three (3) business days following the date such rejected,
refused or undeliverable notice was sent.  The Borrower or the Lender
may change their addresses by notifying the other party of the new address in
any manner permitted by this paragraph.

    

    If to the
Borrower:              c/o
Bluerock Enhanced Multifamily Trust, Inc.

    680
5th
Avenue, 16th
Floor

    New York,
New York 10019

    Attn:  R.
Ramin Kamfar

    Fax:  (212)
843-3411

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    If to the
Lender:               
   c/o Bluerock Real Estate, LLC

    680
5th
Avenue, 16th
Floor

    New York,
New York 10019

    Attn:  R.
Ramin Kamfar

    Fax:  (212)
843-3411

    

    With a
Copy
to:               
   Thomas G. Voekler, Esq.

    Hirschler
Fleischer, a Professional Corporation

    2100 East
Cary Street

    Richmond,
Virginia  23223-7078

    Fax:  (804)
644-0957

    Email:  tvoekler@hf-law.com

    

    To the
extent any provision herein is prohibited by or invalid under applicable law,
such provision shall be ineffective to the extent of such prohibition or
invalidity, without invalidating the remainder of such provision or the
remaining provisions of this Note.

     

    This Note
shall be binding upon and inure to the benefit of the heirs, successors and
assigns of the parties.

     

    IN WITNESS WHEREOF, the
Borrower has caused this Note to be executed by its duly authorized company
officer, as of the day and year first above written.

    

    Borrower:

    

    BEMT
Springhouse, LLC

    a
Delaware limited liability company

    

    By:           Bluerock
Enhanced Multifamily Holdings, L.P.,

     a Delaware limited
partnership

    Its:           Sole
Member

    

    By:           Bluerock
Enhanced Multifamily Trust, Inc.,

     a Maryland
corporation

    Its:           General
Partner

    

    

    By:             
________________________

    Name:         R.
Ramin Kamfar

    Title:           CEOex1012.htm

    Exhibit 10.12

    
 

    PLEDGE AND SECURITY
AGREEMENT

    

    This PLEDGE AND SECURITY AGREEMENT
(this “Agreement”), dated as of December 3, 2009, made by Bluerock
Enhanced Multifamily Holdings, L.P., a Delaware limited partnership (“BEMHLP”)
and BEMT Springhouse, LLC, a Delaware limited liability company (“BEMT”) for
Bluerock Special Opportunity + Income Fund, LLC, a Delaware limited liability
company (the “SOIF”), recites and provides:

    

    Recitals:

    

    
      	
              A.       
        

            	
              BEMT
      is a wholly owned subsidiary of
BEMHLP.

            

    

    

    B.           BEMT
has entered into that certain Secured Promissory Note dated December 3, 2009 for
the benefit of SOIF (the “BEMT Note”), which serves to benefit
BEMHLP.

    

    C.           BEMHLP
desires to grant SOIF a security interest in the Pledged Collateral (as defined
herein) to secure BEMT’s performance under the BEMT Note in accordance with the
provisions hereof.

    

    Agreement:

    

    NOW,
THEREFORE, in consideration of the foregoing and for other good and valuable
consideration, the receipt and sufficiency of which are hereby acknowledged, and
to further induce SOIF to fund the BEMT Note, BEMHLP and SOIF hereby covenant
and agree as follows:

    

    Section 
1.
Definitions.                                           
Unless the context expressly or by necessary implication otherwise requires, (a)
in addition to any terms defined elsewhere in this Agreement, the capitalized
terms defined in this Article 1 shall, for the purposes of this Agreement, have
the meanings set forth below, (b) except as otherwise defined or limited herein,
terms defined in the UCC when used herein shall have the respective meanings
attributed to them therein, and (c) except as otherwise defined or limited
herein, terms defined in the BEMT Note when used herein shall have the
respective meanings assigned to them in the BEMT Note.

    

    “BEMT
Note” shall mean the Secured Promissory Note dated December 3, 2009 by BEMT as
Borrower for the benefit of SOIF as Lender.

    

    “Membership
Interests” shall mean any and all membership interests of BEMT included in the
Pledged Collateral, free and clear of any liens or encumbrances except as
created herein.

    

    “Obligations”
shall mean the punctual payment, when and as due, of any and all accrued
interest and outstanding principal of the BEMT Note and any other costs,
liabilities, reimbursements, etc. required under the terms of the BEMT
Note.

    

    “Pledged
Collateral” shall have the meaning set forth in Section 2 hereof.

    

    “Proceeds”
shall mean any and all “proceeds,” as defined in the UCC, of any and all Pledged
Collateral and, in any event, at any time whatsoever arising or receivable, any
and all cash, shares of stock, instruments, other securities, rights,
properties, interests, claims, and other proceeds arising in connection with any
collection, exchange, sale, transfer, or other disposition of any Pledged
Collateral or interest therein or into which any Pledged Collateral or interest

     

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        
therein
is voluntarily or involuntarily converted, and other amounts from time to time
paid or payable under or in connection with any Pledged
Collateral.

    

    

    “SOIF”
shall mean Bluerock Special Opportunity + Income Fund, LLC, a Delaware limited
liability company.

    

    “Transaction
Documents” shall mean the BEMT Note, this Agreement and that certain Pledge and
Security Agreement by and between SOIF and BEMT.

    

    Section  
 2. Pledge and Grant of Security
Interest.  As collateral security for BEMT’s performance under
the BEMT Note and in order to induce SOIF to fund the BEMT Note, BEMHLP hereby
pledges, assigns, hypothecates, transfers, and delivers to SOIF and grants to
SOIF a security interest in, all BEMHLP’s right, title, and interest (but none
of BEMHLP’s obligations) in, to, and under the following (the “Pledged
Collateral”), with full authority to sell, transfer, and
rehypothecate:

    

    (a) all
of the Membership Interests; and

    

    (b) all
dividends and other distributions, whether in cash, property, obligations, or
any other form whatsoever, from time to time, payable, or distributable in
respect of or in exchange for any or all of the Membership Interests;
and

    

    (c) all
right, title and interest of BEMHLP in and to any of the property of BEMT;
and

    

    (d) all
right, title and interest of BEMHLP to participate in the management of BEMT;
and

    

    (e) all
interest, dividends, cash, checks, instrument and other property now or in the
future payable under or received, receivable or otherwise distributed in respect
of or in substitution or exchange for the Membership Interests, including
amounts past due and unpaid; and

    

    (f) any
and all Proceeds of any and all of the foregoing, whether or not constituting
any kind or type of tangible or intangible personal or real property whatsoever
and whether now owned or hereafter acquired, including without limitation
certificates, instruments, shares of stock, other securities, and rights,
privileges, and options pertaining to any thereof,

    

    in each
case, howsoever BEMHLP’s interest therein may arise or appear, whether by
ownership, security interest, claim, or otherwise.

    

    Section 3. General
Covenants.                                                      
So long as any Obligation remains unpaid, BEMHLP covenants and agrees that,
unless SOIF otherwise expressly consents in writing:

    

    Section 3.1. Limitations on Dispositions, etc.
BEMHLP shall not directly or indirectly (a) suffer any amendment or other
modification of any Membership Interests or (b) sell, assign (by operation of
law or otherwise), exchange, liquidate, grant, or otherwise dispose of any
Membership Interests or any lien or other interest therein.

     

     

    
      
        
        

      

      
        2

        
          

        

      

      
        
        

      

    

     

    Section 
3.2. Changes in BEMHLP’s
Name.  BEMHLP shall not change, or suffer or permit any change
of, BEMHLP’S name or identity which could in any manner make any financing or
continuation statement filed in connection herewith (including without
limitation under this Section 3.2) “seriously misleading,” as defined in the
UCC, unless (a) BEMHLP shall have given SOIF no less than ninety (90) days’
prior written notice thereof, (b) BEMHLP shall have, prior to such change,
delivered to SOIF acknowledgment copies of financing statements duly completed,
executed, and filed in each jurisdiction necessary or advisable to ensure the
continuous perfection of all security interests granted pursuant to this
Agreement, and (c) BEMHLP shall have taken all other action or actions
necessary, or reasonably requested by SOIF, to preserve and protect all such
security interests, including without limitation the continuous perfection
thereof.

    

    Section 3.3. Voting, etc., of Pledged
Collateral.  So long as no Event of Default (defined
hereinafter) shall have occurred and be continuing, BEMHLP may vote any
Membership Interests for any purpose and to any effect to the extent not
inconsistent with the provisions of the Transaction Documents, and, upon
BEMHLP’s reasonable written request therefor, SOIF will execute and deliver (or
cause to be executed and delivered) to BEMHLP any such proxy or other instrument
as is reasonably necessary to enable BEMHLP to vote any Membership Interests for
any such purpose and to any such effect.

    

    Section 3.4. Certain Rights respecting Pledged
Collateral.  SOIF shall have the right, exercisable at any time
and from time to time in its sole discretion, to cause the interest of SOIF in
any Pledged Collateral to be duly noted on any transfer books for Membership
Interests or other records therefor.

    

    Section 3.5. No Issuance of Additional Membership
Interests.  During the term of this Agreement, BEMHLP shall not
cause, suffer, or permit BEMT to issue any additional securities of any class or
nature, nor to take any other action, or omit to take any action, the result of
which is to render the Membership Interests to be less than 100% of the issued
and outstanding securities of BEMT.

    

    Section 4. Default.

    

    Section 4.1. Events of
Default.  An Event of Default shall occur hereunder upon the
occurrence of any one or more of the following:

    

    (a) If
BEMHLP shall in any manner breach or violate, or fail to perform or
satisfy, any term, covenant, condition, obligation, or other provision hereof
and such default shall continue at any time after the period of thirty (30)
consecutive days next following the date on which SOIF shall have given
BEMHLP notice specifying such default and requesting that such default be
remedied; or

    

    (b) If
any “Event of Default” shall occur under one or more of the Transaction
Documents.

    

    Section 
4.2. Remedies; Rights Upon
Default.  At any time after the occurrence of an Event of
Default, in addition to any other rights, powers, and remedies available under
any Transaction Document, or at law, in equity, by statute, or otherwise, SOIF
shall have all the following rights, powers, and remedies, which SOIF may (but
shall not be obligated to) exercise, concurrently or singly, in whole or in
part, at any time and from time to time, by or through such officers, agents,
employees, or other representatives of SOIF as SOIF may select, without any

     

     

    
      
        
        

      

      
        3

        
          

        

      

      
        
        
hindrance
or delay by BEMHLP and without any notice or demand upon BEMHLP except
as expressly required in this Section 4.2:

    

    

    Section 4.2.1.
Acceleration.  SOIF may declare any and all Obligations to be
immediately due and payable.

    

    Section 4.2.2. Accounts,
etc.  Until the occurrence of an Event of Default,
BEMHLP may collect and retain any and all amounts owing under or in
connection with any Pledged Collateral, which SOIF hereby expressly authorizes
BEMHLP to do, but, after the occurrence of an Event of Default, (a) SOIF
may curtail or terminate such authority at any time and from time to time by
delivery of a default notice requesting the same (the “Default Notice”) and
BEMHLP shall, at all times after BEMHLP’s receipt of the Default Notice,
segregate all such amounts from BEMHLP’s other funds and property, and shall,
immediately upon BEMHLP’s receipt of the Default Notice, deliver actual
possession of all such amounts to SOIF and (b) BEMHLP shall hold and be
deemed to hold all such amounts in trust for SOIF and as SOIF’s
bailee.

    

    Section 
4.2.3. UCC, Other
Rights.  SOIF shall have and may exercise all the rights,
powers, and remedies of a secured party under the UCC, and, in addition and not
in limitation of the generality of the foregoing:

    

    (a)
without demand of payment or performance or other demand, advertisement, or
notice of any kind (all and each of which demands, advertisements, and notices,
excepting only the notice of time and place of public or private sale specified
in this Section 4.2.3 and any other demand, advertisement, or notice which by
law may not be waived, BEMHLP hereby expressly waives) to or upon
BEMHLP or any other person or entity, SOIF may (1) immediately enter
BEMHLP’s premises without legal process and without any liability therefor, (2)
immediately collect, receive, appropriate, and realize upon any Pledged
Collateral, (3) immediately sell, lease, assign, give any options to purchase,
or otherwise dispose of and deliver any Pledged Collateral (or contract to do
so) at any public or private sale, at any exchange, broker’s board, any of
SOIF’s offices, or
elsewhere, at such prices as SOIF may in good faith deem appropriate, for cash,
on credit, or for future delivery with or without assumption of any credit risk,
and (4) require BEMHLP to assemble any Pledged Collateral, and
BEMHLP shall make all such Pledged Collateral available to SOIF at such
place or places as SOIF shall select, which in any event shall be reasonably
convenient to SOIF;
and

    

    (b) SOIF
shall have the right upon any such public sale, and, to the extent permitted by
law, upon any such private sale, to purchase any Pledged Collateral so sold,
free of any right or equity of redemption in BEMHLP; and

    

    (c) SOIF
need not give more than fifteen (15) days prior written notice of the time and
place of any public sale or of the time after which any private sale may occur,
which notice shall constitute reasonable notification thereof; and

    

    (d) to
the extent permitted by applicable law, BEMHLP waives all claims, damages,
and demands against SOIF arising out of the repossession, retention, or usage by
SOIF or any agent, or other representative thereof of any Pledged
Collateral.

    

    Section 4.3. Rights of Conversion,
etc.  At any time and from time to time after the occurrence of
an Event of Default, in SOIF’s sole discretion
and on such terms and conditions 

     

     

    
      
        
        

      

      
        4

        
          

        

      

      
        
        
as SOIF
may deem desirable, SOIF may (but shall not be
obligated to) exercise any and all rights of conversion, exchange, subscription,
and other rights, privileges, or options pertaining to any Pledged Collateral as
if the absolute owner thereof, including without limitation any right to
exchange any Pledged Collateral upon any merger, consolidation, reorganization,
recapitalization, or other adjustment of SOIF or upon any exercise by SOIF of
any right, privilege, or option pertaining to any Pledged Collateral, and, in
connection therewith, to deposit and deliver any Pledged Collateral with any
clearing corporation, custodian bank, depository, registrar, transfer or other
agent, committee, or other person or entity whatsoever, including without
limitation any nominee of any thereof.

    

    

    Section 4.3.1. Assistance in Complying with
Securities Laws.  BEMHLP shall, from time to time at SOIF’s
request and BEMHLP’s sole expense, assist SOIF in making any sale or other
disposition of the Pledged Collateral in compliance with any and all applicable
securities laws, which assistance shall include without limitation:

    

    (a)
providing SOIF, and prospective purchasers of the Pledged Collateral such
information respecting the properties, prospects, profits, performance,
business, and condition (financial and otherwise) of SOIF as may be reasonably
available; and

    

    (b)
causing SOIF to permit the prospective purchasers, and their respective
employees, agents, and other representatives to enter the premises of
BEMHLP to inspect BEMHLP’s properties, books, and records and to make such
abstracts and copies thereof as any thereof may desire; and

    

    (c)
executing and delivering, and causing BEMHLP to execute and deliver, all
instruments and documents, and doing, and causing to be done, all acts and
things SOIF may deem necessary or advisable to register any Pledged Collateral
under applicable securities laws and to cause any registration statement with
respect thereto to become and remain effective for such period as applicable
securities laws may require; and

    

    (d)
making or causing to be made all supplements, amendments, and other
modifications to any of the foregoing and to any prospectus or prospectuses
which SOIF may deem necessary or advisable for compliance or continued
compliance with applicable securities laws; and

    

    (e)
causing any Pledged Collateral to qualify under any applicable state securities
laws, including without limitation “Blue Sky” laws; and

    

    (f)
obtaining any approvals from any governmental authority SOIF may deem necessary
or advisable in connection with such sale or other disposition of any such
Pledged Collateral; and

    

    (g) doing
or causing to be done any other act or thing SOIF may deem necessary or
advisable for such sale or other disposition to be valid, binding, and in
compliance with applicable law.

    

    Section 4.3.2. Voting, etc., of Pledged
Collateral.  BEMHLP shall not vote or take any other steps
with respect to the Pledged Collateral without SOIF’s express prior written
consent and SOIF shall have the sole right, in its sole discretion without any
notice to 

     

     

    
      
        
        

      

      
        5

        
          

        

      

      
        
        
BEMHLP or
any other person or entity, to transfer all or any part of the Pledged
Collateral into SOIF’s name and to vote any and all Membership Interests as it
deems advisable for its protection.

    

    

    Section 
4.3.3. Application of
Proceeds.  Any and all amounts received by SOIF in connection
with any collection, negotiation, setoff, recovery, receipt, appropriation,
realization, sale, or exercise of any other right, power, or remedy under this
Section 4.3.3 or otherwise may, in its sole discretion, be held as collateral
security for the punctual payment, performance, and satisfaction, when and as
due, of any and all Obligations, and SOIF may, upon receipt thereof or at any
time thereafter, apply all or any part of such amounts against the
Obligations.  Only after such application and after payment of any
other amount required by any provision of law need SOIF account to
BEMHLP for any surplus.

    

    Section 5.
Miscellaneous.

    

    Section 5.1. Sufficiency as Financing Statement,
etc.  This Agreement or any photographic, photostatic,
xerographic, or other reproduction hereof or of any financing statement shall be
sufficient as a financing or continuation
statement.  BEMHLP hereby authorizes SOIF, to the extent
permitted by applicable law, to file any financing or continuation statement
without the signature of BEMHLP, to complete, execute, and file any such
statement on behalf of BEMHLP, and to file this Agreement as a financing or
continuation statement.

    

    Section 5.2. Governing Law; Jurisdiction;
Venue.  This Agreement shall be construed and interpreted in
accordance with the laws of the State of New York, without regard to its
conflict of law principles.  The parties hereto hereby irrevocably (a)
consent and submit to the exclusive in personam jurisdiction and venue of the
State of New York, in any action or proceeding arising out of or in any way
relating to this Note or any instrument or document relating hereto, (b) agree
that all claims in respect of such action or proceeding may be heard and
determined in such above-referenced state or federal court located in New
York,  (c) consent to the service of any and all process in any such
action or proceeding by the mailing of copies of such process in conformity with
the notice provision hereof, and (d) agree that a final judgment in any such
action or proceeding shall be conclusive and may be enforced in other
jurisdictions by suit on the judgment or in any other manner provided by
law.

    

    Section 5.3. Waiver of Jury
Trial.  SOIF
AND BEMHLP, BY DELIVERY AND ACCEPTANCE OF THIS AGREEMENT, KNOWINGLY,
VOLUNTARILY, AND INTENTIONALLY WAIVE THE RIGHT EITHER MAY HAVE TO A TRIAL BY
JURY IN RESPECT OF ANY LITIGATION ARISING OUT OF, UNDER OR IN CONNECTION WITH
THIS AGREEMENT, ANY OTHER TRANSACTION DOCUMENT, OR ANY OTHER AGREEMENT EXECUTED
OR CONTEMPLATED TO BE EXECUTED IN CONNECTION HEREWITH, OR ARISING OUT OF, UNDER
OR IN CONNECTION WITH ANY COURSE OF CONDUCT, COURSE OF DEALING, STATEMENTS
(VERBAL OR WRITTEN) OR ACTION OF ANY PARTY, WHETHER IN CONNECTION WITH THIS
AGREEMENT, THE MAKING OF THE LOAN EVIDENCED BY THE BEMT NOTE, ANY OTHER
TRANSACTION DOCUMENT, COLLECTION OF SUCH LOAN, OR OTHERWISE.  THIS
PROVISION IS A MATERIAL INDUCEMENT FOR ALL SUCH PARTIES TO ENTER THE TRANSACTION
DOCUMENTS.

    

    Section 5.4.
Notices.  Except as expressly provided herein to the contrary,
any notice, report, or writing required or permitted to be given hereunder to
any party shall be in 

     

     

    
      
        
        

      

      
        6

        
          

        

      

      
        
        
writing
and shall be served by delivering the same personally either to such party, or
by sending the notice postage prepaid by certified U. S. first class mail,
return receipt requested, or by FedEx or another reputable delivery
service.  Any and all such notices shall be delivered to the parties
at their respective addresses specified in this Section 5.4.  Any such
notice deposited in the mail shall be conclusively deemed delivered to and
received by the addressee on the third business day after the day in which such
notice is delivered to the U. S. Postal Service for mailing if all of the
foregoing conditions of notice shall have been satisfied.  Any notice
delivered by any other delivery service shall be deemed delivered on the date of
delivery as indicated by such carrier’s records, absent manifest
error.

    

    

    to
BEMHLP:                                              c/o
Bluerock Enhanced Multifamily Trust, Inc.

    680 5th
Avenue, 16th
Floor

    New York, New York
10019

    Attn:  R. Ramin
Kamfar

    

    to
BEMT:                                             
     c/o Bluerock Enhanced Multifamily Trust,
Inc.

    680 5th
Avenue, 16th
Floor

    New York, New York
10019

    Attn:  R. Ramin
Kamfar

    

    to
SOIF:                                              
       c/o Bluerock Real Estate, LLC

    680 5th
Avenue, 16th
Floor

    New York, New York
10019

    Attn:  R. Ramin
Kamfar

    

    with a
mandatory                                        Thomas
G. Voekler, Esquire

    copy
to:                                                     
  Hirschler Fleischer

    2100 East Cary St., 4th
Floor

    P.O. Box 500
(23218-0500)

    Richmond,
VA  23223

    

    Any party
hereto may change its address for the purposes of this Section 5.4 by giving the
other parties hereto written notice, as provided for herein, of the new
address.

    

    Section 5.5. Time of
Essence.  Time is of the essence with respect to every term,
covenant, condition, representation, warranty, obligation, and other provision
of this Agreement.

    

    Section 5.6.
Counterparts.  This Agreement may be executed and delivered in
any number of counterparts and by different parties hereto in separate
counterparts, each of which when so executed and delivered shall be deemed to be
an original and all of which taken together shall constitute one and the same
instrument.

    

    Section 5.7. Successors and Assigns;
Third Party Beneficiaries.  The terms, covenants, conditions,
and other provisions of this Agreement shall be binding upon the administrators,
successors, and assigns of BEMHLP, and shall, together with all rights, powers,
and remedies of SOIF hereunder, inure to the benefit of SOIF and any one or more
present or future successors, pledgees, assignees, or endorsees of SOIF, subject
to all applicable provisions of the BEMT Note.  Subject to the
foregoing, no term, covenant, condition, representation, warranty, obligation,
or other provision hereof is for the benefit of any person or entity not a party
hereto.

     

    
 

    
      
        
        

      

      
        7

        
          

        

      

      
        
        

      

    

    Section 5.8
Severability.  If any provision in this Agreement is held by a
court of competent jurisdiction to be invalid, void or unenforceable, the
remaining provisions shall nevertheless continue in full force and effect
without being impaired or invalidated in any way.

    

    Section 5.9 Entire
Agreement.  This Agreement contains the entire understanding
between the parties hereto and supersedes any prior written or oral agreements
between them respecting the within subject matter. There are no representations,
agreements or understandings, oral or written, between or among the parties
hereto relating to the subject matter of this Agreement which are not fully
expressed herein.

    

    

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    IN
WITNESS WHEREOF, the parties hereto have duly executed, or caused their
authorized representatives to duly execute, this Agreement as of the date first
written above.

    

    
      	
               
      

            	
              BEMHLP:

            

    

    

    
      	
               
      

            	
              Bluerock
      Enhanced Multifamily Holdings,
L.P.,

            

    

    
      	
               
      

            	
              a
      Delaware limited partnership

            

    

    

    By:         Bluerock
Enhanced Multifamily Trust, Inc.,

       a Maryland
corporation

    Its:         General
Partner

    

    By:          
_________________      

    Name:      R.
Ramin Kamfar

    Its:           CEO

    

    

    
      	
               
      

            	
              BEMT:

            

    

    

    
      	
               
      

            	
              BEMT
      Springhouse, LLC,

            

    

    
      	
               
      

            	
              a
      Delaware limited liability company

            

    

    

    
      	
               
      

            	
              By:

            	
              Bluerock
      Enhanced Multifamily Holdings,
L.P.,

            

    

    
      	
               
      

            	
              a
      Delaware limited partnership

            

    

    Its:         Sole
Member

    

    By:           Bluerock
Enhanced Multifamily Trust, Inc.,

     a Maryland
corporation

    Its:           General
Partner

    

    By:           __________________

    Name:      R.
Ramin Kamfar

    Its:           CEO

    

    

    SOIF:

    

    Bluerock
Special Opportunity + Income Fund, LLC,

    a
Delaware limited liability company

    

    By:         Bluerock
Real Estate, LLC,

       a Delaware limited
liability company

    Its:         Manager

    

    By:           ______________________

    Name:      R.
Ramin Kamfar

    Its:           CEO

    

    

    

    

     

    9

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