Document:

exv10w2

Exhibit 10.2

PROMISSORY NOTE

			
	 	 	 
	$5,000,000.00
	 	Date: December 22, 2010     

          FOR VALUE RECEIVED, SIR Park Place, LLC, an Iowa limited liability company, with offices at
18100 Von Karman Avenue, Suite 500, Irvine, California (“Borrower”), absolutely and unconditionally
promises to pay to the order of Ames Community Bank, with offices at 925 Gateway Drive, Grimes,
Iowa 50111 (“Lender”), the principal sum of FIVE MILLION AND NO/100’s DOLLARS ($5,000,000.00), with
interest on the unpaid principal balance to be computed from the date of this Promissory Note (this
“Note”) at the Applicable Interest Rate (as defined below), in lawful money of the United States of
America, in immediately available funds, which shall at the time of payment be legal tender for
payment of all debts and dues, public and private.

     1. PAYMENTS.

          1.1. Payments. The principal, interest and all other sums due under this Note
shall be payable at the office of Lender as set forth above, or at such other place as Lender may
from time to time designate in writing, as follows: Commencing on January 1, 2011 (“First Payment
Date”), and on the first day of each month thereafter (each a “Scheduled Payment Date”) until the
Maturity Date, Borrower shall make interest only payments at the Applicable Interest Rate in the
amount of all interest accrued during the immediately preceding calendar month.

               (a) All amounts due under this Note shall be payable without setoff, counterclaim or any
other deduction whatsoever.

               (b) Additionally, payments shall be made on this Note as provided by the Loan Agreement
and the other Loan Documents.

               (c) Unless extended pursuant to the provisions of this Note, the entire outstanding
principal balance of this Note, together with accrued and unpaid interest and any other amounts due
under this Note including all accrued interest and all other payment Obligations of Borrower shall
become due on December 31, 2013 (the “Maturity Date”).

          1.2. Applicable Interest Rate. Interest shall be fixed at 5.25% per annum, except
that during any extension period the interest rate shall be as set forth in Section 7.2(a) below.

     NOTICE: UNDER NO CIRCUMSTANCES WILL THE INTEREST RATE ON THIS NOTE BE MORE THAN THE MAXIMUM
RATE ALLOWED BY APPLICABLE LAW. In the event any rate change would result in a rate which would
violate applicable law, the interest rate shall be adjusted to equal the highest rate allowed by
applicable law. Borrower represents and warrants that this transaction is exempt from the usury
laws of the State of Iowa, and intends Lender to rely upon this representation.

 

 

          1.3 Computation. Interest on the principal sum of this Note shall be calculated
on the basis of a 360-day year.

          1.4 Determination. Payments under this Note or any other Loan Document shall be
made in federal funds immediately available in the place designated for payment which must be
received by Lender prior to 2:00 p.m. local time at said place of payment. Payments so made shall
be considered by Lender as having been received prior to close of business, while other payments
may, at the option of Lender, not be credited until immediately available to Lender in federal
funds in the place designated for payment prior to 2:00 p.m. local time at said place of payment on
a day on which Lender is open for business.

          1.5 Making of Payments. Each payment by Borrower hereunder or under the Loan
Agreement or any other Loan Document shall be made in funds immediately available to Lender on the
date such payment is due from such Borrower to Lender, without presentment, demand, protest or
notice of any kind, all such notices being hereby waived and without setoff, counterclaim or other
deduction of any nature. Whenever any payment hereunder or under the Loan Agreement or any other
Loan Document shall be stated to be due on a day which is not a Business Day such payment shall be
made on the next following Business Day.

          1.6 Application. Payments under this Note shall be applied first to the payment of
late fees and other costs and charges due in connection with this Note or the other Loan Documents,
as Lender determines in its sole discretion, then to the payment of accrued but unpaid interest,
and then to reduction of the outstanding principal balance (in inverse order of maturity whether or
not then due).

          1.7. Definitions. All capitalized terms used in this Note without definition
shall have the meanings assigned to such terms in the Loan Documents, all of the terms of such Loan
Documents being hereby incorporated into and made part of this Note by reference for all purposes.
Additionally, for purposes of this Note, the following terms shall have the following meanings:

          “Default Rate” has the meaning given thereto in Section 2.4.

          “Interest Accrual Period” means the calendar month.

          “Loan Agreement” means that certain Loan Agreement dated as of even date herewith
between Borrower and Lender, as the same may be amended, restated, replaced, supplemented or
otherwise modified from time to time.

     2 DEFAULT.

          2.1 Late Fee. If any sum payable under this Note or any other Loan Document is
not paid on or before the fifth (5th) day after the date due, Borrower shall pay a Late Fee of five
percent (5%) of the payment due that shall be added to the amount of principal and interest due
with each such late payment. The parties acknowledge and agree that the Late Fee is not a penalty
but is intended to defray costs and expenses incurred by Lender in connection with each such late
payment. If the amount noted herein is prohibited or restricted by Legal Requirements, the maximum
amount permitted by applicable law to defray the expenses

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incurred by Lender in handling and processing such delinquent payment and to compensate Lender for the loss of the
use of such delinquent payment and such amount shall be added to each such payment and shall be
secured by the Security Instrument and the other Loan Documents.

          2.2 Remedies. Upon the commencement of an Event of Default, the entire
outstanding principal sum of this Note, together with all interest accrued and unpaid thereon and
all other sums due under this Note, the Security Instrument or any of the other Loan Documents, or
any portion thereof shall without notice become immediately due and payable at the option of Lender
upon the occurrence of any Event of Default as defined in the Loan Agreement or in any of the Loan
Documents. Time is of the essence in this Note, the Security Instrument and the other Loan
Documents. If Borrower’s obligations under this Note or any of the other Loan Documents to which
it is a party are enforced by Lender through an attorney-at-law, or any payment due under this Note
or the other Loan Documents is collected by or through an attorney-at-law or collection agency,
Borrower agrees to pay all costs incurred by Lender in connection therewith, including, but not
limited to, internal administrative costs, reasonable attorneys’ fees and disbursements (whether
with respect to a retained firm or, to the extent permitted by applicable law, Lender’s in-house
staff), collection agency costs, whether or not suit be brought, and any and all costs or fees
arising as a result of the filing of or during the course of any case under any Bankruptcy Laws (as
defined in the Loan Agreement) with respect to any of the Borrower Parties.

          2.3. Copy of Note. If a copy of this Note, verified by an affidavit, shall be
filed in any proceeding, it will not be necessary to file the original. Borrower waives the right
to any stay of execution and the benefit of all exemption laws now or hereafter in effect.

          2.4 Default Rate. Upon the occurrence of an Event of Default, Lender shall be
entitled to receive, and Borrower shall pay interest on, the entire unpaid principal sum at the
rate of 10% per annum (the “Default Rate”) on all amounts due to Lender from Borrower pursuant to
this Note. The Default Rate shall be automatically computed from the occurrence of the Event of
Default and shall remain in effect until the actual receipt and collection of this Note in full has
been accomplished and all other amounts due to Lender from Borrower pursuant to this Note or other
Loan Documents have been fully paid or, if permitted by Lender, the date upon which such Event of
Default is cured. This charge shall be added to this Note, and shall be deemed secured by the
Security Instrument and the other Loan Documents. This clause, however, shall not be construed as
an agreement or privilege to extend the date of any payment due pursuant to this Note including,
but not limited to, the Maturity Date, or to the payment of any other sums payable under the Loan
Documents, nor as a waiver of any other right or remedy accruing to Lender by reason of the
occurrence of any Event of Default. In the event the Default Rate would otherwise exceed the
maximum rate permitted by applicable law, the Default Rate shall be the maximum rate permitted by
applicable law.

          2.5 Post-Judgment. Interest shall accrue on any judgment obtained by Lender in
connection with the enforcement or collection of this Note or the other Loan Documents (including
foreclosure of the Security Instrument) until such judgment amount is irrevocably paid in full at a
rate equal to the greater of (a) the Default Rate or (b) the highest legal rate applicable to
judgments within such jurisdiction; provided, however, that interest shall not accrue

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at a rate in excess of the maximum rate of interest, if any, which may be charged by Lender or collected from
any Borrower under applicable law.

     3 REMEDIES CUMULATIVE. THE REMEDIES AVAILABLE TO LENDER UNDER THIS NOTE AND IN
THE OTHER LOAN DOCUMENTS, OR AT LAW OR IN EQUITY, SHALL BE CUMULATIVE AND CONCURRENT, AND MAY BE
PURSUED SINGLY, SUCCESSIVELY OR TOGETHER IN LENDER’S SOLE DISCRETION AND AS OFTEN AS OCCASION
THEREFOR SHALL ARISE EXCEPT AS PROVIDED IN THE LOAN AGREEMENT.

     4 PREPAYMENT. Borrower may prepay without penalty all or a portion of the
amount owed earlier than it is due. Early payments may reduce the principal balance and the amount
of interest due. Borrower shall have sole discretion to direct how any early payments are applied,
provided that Borrower is current on all interest payments.

     5 SECURITY. The indebtedness evidenced by this Note is governed by the Loan
Agreement and the obligations created thereby (including without limitation the amounts authorized
by Section 2 to be collected by Lender) are secured by, among other things, the Security Instrument
and other Loan Documents.

     6 GENERAL

          6.1 Written Amendment Only. This Note may not be modified, amended, waived,
extended, changed, discharged or terminated orally or by any act or failure to act on the part of
Borrower or Lender, but only by an agreement in writing signed by the Borrower and Lender.

          6.2 Certain Waivers. Except for any notices specifically required by the Loan
Agreement, Borrower and all others who may become liable for the payment of all or any part of the
Debt do hereby severally waive presentment and demand for payment, notice of dishonor, protest and
notice of protest, notice of non-payment and notice of intent to accelerate the maturity hereof
(and of such acceleration). No release of any security for the Loan or extension of time for
payment of this Note or any installment hereof, and no alteration, amendment or waiver of any
provision of this Note or the other Loan Documents made by agreement between Lender and any Person
other than Borrower shall release, modify, amend, waive, extend, change, discharge, terminate or
affect the liability of Borrower, or any other Person who may become liable for the payment of all
or any part of the Debt, under this Note and the other Loan Documents. Lender may release any
guarantor or indemnitor of the Loan from liability, in every instance without the consent of the
Borrower hereunder, and without waiving any rights the Lender may have hereunder, under the other
Loan Documents.

          6.3 Severability. If any provision or obligation under this Note and the other
Loan Documents shall be determined by a court of competent jurisdiction to be invalid, illegal or
unenforceable, that provision or obligation shall be deemed severed from the Loan Documents

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and the validity, legality and enforceability of the remaining provisions or obligations shall remain in
full force as though the invalid, illegal, or unenforceable provision or obligation had never been
a part of the Loan Documents.

          6.4 Notices. All notices or other written communications hereunder shall be given
and become effective as provided in the Loan Agreement.

          6.5 Set-Off Preference. Except as expressly provided to the contrary in this Note
or the Loan Documents, Borrower is and shall be obligated to pay principal, interest and any and
all other amounts for which such Borrower is liable which become payable hereunder or under the
other Loan Documents absolutely and unconditionally and without any abatement, postponement,
diminution or deduction and without any reduction for counterclaim or setoff. In the event that at
any time any payment received by Lender hereunder shall be deemed by a court of competent
jurisdiction to have been a voidable preference or fraudulent conveyance under any bankruptcy,
insolvency or other debtor relief law, then the obligation to make such payment shall survive any
cancellation or satisfaction of this Note or return thereof to Borrower and shall not be discharged
or satisfied with any prior payment thereof or cancellation of this Note, but shall remain a valid
and binding obligation enforceable in accordance with the terms and provisions hereof, and such
payment shall be immediately due and payable upon demand.

          6.6 Successors and Assigns. The terms and provisions hereof shall be binding
upon, and inure to the benefit of, Borrower and Lender and their respective heirs, executors, legal
representatives, successors, successors-in-title and permitted assigns, whether by voluntary action
of the parties or by operation of law. As used in this Note and the other Loan Documents, the
terms “Borrower” and “Lender” shall be deemed to include their respective heirs, executors, legal
representatives, successors, successors-in-title and permitted assigns (no right to assign on the
part of Borrower being implied hereby), whether by voluntary action of the parties or by operation
of law.

          6.7 Interpretation. All references to sections, schedules and exhibits are to
sections, schedules and exhibits in or to this Note unless otherwise specified. Unless otherwise
specified, the words “hereof,” “herein” and “hereunder” and words of similar import when used in
this Note shall refer to this Note as a whole and not to any particular provision of this Note.
Unless otherwise specified, all meanings attributed to defined terms herein shall be equally
applicable to both the singular and plural forms of the terms so defined and “including” means
including without limitation. Whenever the context requires, each gender shall include all other
genders.

          6.8 Waiver of Claims/Trial by Jury. BORROWER HEREBY RELEASES ANY CLAIM AGAINST
LENDER AS SET FORTH IN THE LOAN DOCUMENTS. FURTHER, EACH PARTY TO THIS AGREEMENT HEREBY EXPRESSLY
WAIVES ANY RIGHT TO TRIAL BY JURY OF ANY CLAIM, DEMAND, ACTION OR CAUSE OF ACTION (A) ARISING UNDER
THE LOAN DOCUMENTS, INCLUDING, WITHOUT LIMITATION, ANY PRESENT OR FUTURE MODIFICATION THEREOF OR
(B) IN ANY WAY CONNECTED WITH OR RELATED OR INCIDENTAL TO THE DEALINGS OF THE PARTIES HERETO OR ANY
OF THEM WITH RESPECT TO THE LOAN DOCUMENTS (AS NOW OR HEREAFTER MODIFIED) OR ANY OTHER INSTRUMENT,
DOCUMENT OR

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AGREEMENT EXECUTED OR DELIVERED IN CONNECTION HEREWITH, OR THE TRANSACTIONS RELATED
HERETO OR THERETO, IN EACH CASE WHETHER SUCH CLAIM, DEMAND, ACTION OR CAUSE OF ACTION IS NOW
EXISTING OR HEREAFTER ARISING, AND WHETHER SOUNDING IN CONTRACT OR TORT OR OTHERWISE; AND EACH PARTY HEREBY AGREES AND CONSENTS
THAT ANY PARTY TO THIS AGREEMENT MAY FILE AN ORIGINAL COUNTERPART OR A COPY OF THIS SECTION WITH
ANY COURT AS WRITTEN EVIDENCE OF THE CONSENT OF THE PARTIES HERETO TO THE WAIVER OF ANY RIGHT THEY
MIGHT OTHERWISE HAVE TO TRIAL BY JURY.

          6.9 GOVERNING LAW. THIS NOTE SHALL BE GOVERNED BY, AND INTERPRETED AND CONSTRUED
IN ACCORDANCE WITH, THE LAWS OF THE STATE OF IOWA

          6.10 VENUE/JURISDICTION. ANY ACTION BETWEEN THE PARTIES SHALL BE COMMENCED AND
SHALL BE UNDERTAKEN IN THE IOWA DISTRICT COURT WHERE THE PROPERTY THAT IS THE SUBJECT OF THE
SECURITY INTEREST IS LOCATED AND EACH PARTY HEREBY SUBMITS ITSELF TO THE JURISDICTION OF SAID
COURT.

          6.11 COUNTERPARTS. This Note may be executed in any number of counterparts, each
of which shall be an original, but all of which shall constitute one and the same instrument.

     7 EXTENSION OPTIONS. Lender grants Borrower two (2) options to extend the
Maturity Date of this Note for successive periods of one (1) year each, upon and subject to the
terms and conditions in this Section 7. In the event of such extension, the date as so extended
shall be deemed the “Maturity Date.”

          7.1 Basic Conditions. Unless otherwise agreed by Lender in writing,

          (a) Borrower shall exercise an extension, if at all, by written notice to Lender not less
than ten (10) days prior to the Maturity Date.

          (b) At the time of the request, and at the time of the extension, there shall not exist
any Event of Default, nor any condition or state of facts which after notice and/or lapse of time
would constitute an Event of Default under any Loan Document.

          (c) Whether or not the extension becomes effective, Borrower shall pay all out-of-pocket
costs and expenses incurred by Lender in connection with the proposed extension (pre- and
post-closing), including, without limitation, appraisal fees, environmental audit and legal fees;
all such costs and expenses incurred up to the time of Lender’s written agreement to the extension
shall be due and payable prior to Lender’s execution of that agreement (or if the proposed
extension does not become effective, then upon demand by Lender), and any future failure to pay
such amounts shall constitute a default under the Loan Documents.

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          (d) Borrower shall satisfy all applicable regulatory requirements, including appraisal
requirements, with respect to the extension.

          (e) Lender shall have been provided with an updated Title Opinion on the Property

          (f) Borrower shall have paid to Lender a non-refundable extension fee in an amount equal
to. 25% of the then outstanding principal balance hereunder.

          If all of the foregoing conditions are not satisfied strictly in accordance with their terms,
the extension shall not be or become effective.

          7.2 Changes in Loan Terms. All terms and conditions of the Loan Documents shall
continue to apply to the extended term except to the extent changed as indicated below (such
changes to be effective on and after the original Maturity Date, if the extension becomes effective
as provided herein):

          (a) Interest Rate. The Applicable Interest Rate shall adjust on the first day such
extension period becomes effective (i.e., on December 31, 2013 and December 31, 2014), to a rate
which is then equal to the One-Year Federal Home Loan Bank of Des Moines rate plus 3.75%, provided,
however, such interest rate shall never be below 5.0% or above 6.5%.

          (b) Payments. Commencing on the effective date of the first extension period,
until the Maturity Date, Borrower shall make payments of principal and accrued interest at the
Applicable Interest Rate, with principal being amortized on a 30 year basis, and with all principal
and accrued interest due and payable in full on the Maturity Date.

IMPORTANT: READ BEFORE SIGNING. THE TERMS OF THIS NOTE SHOULD BE READ CAREFULLY BECAUSE ONLY THOSE
TERMS IN WRITING ARE ENFORCEABLE. NO OTHER TERMS OR ORAL PROMISES NOT CONTAINED IN THIS WRITTEN
CONTRACT MAY BE LEGALLY ENFORCED. YOU MAY CHANGE THE TERMS OF THIS NOTE ONLY BY ANOTHER WRITTEN
AGREEMENT.

By signing below, the parties hereto acknowledge that it concurrently received of a copy of the
documents and each document referenced herein.

          IN WITNESS WHEREOF, Borrower has duly executed this Note the day and year first above written.

[Signature Pages Follow]

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Signature Page — Promissory Note

	 	 	 	 	 
	 	BORROWER:

SIR Park Place, LLC, an Iowa limited liability company

by: Steadfast Income Advisor, LLC, its Manager

 	 
	 	By:  	/s/  James
Kasim	 
	 	 	Name:  	James Kasim	 
	 	 	Title:  	Chief
Financial Officer 	 
	 

	 	 	 	 	 

	STATE OF _____________

	 	)	 	 
	 

	 	) SS.

	COUNTY OF _________

	 	)	 	 

     This instrument was acknowledged before me on this ___ day of December, 2010 by
____________ as ____________ of Steadfast Income Advisor, LLC, the Manager of
SIR Park Place, LLC.

[See
Attached Certificate]                

Notary Public in and for the State of ______

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ACKNOWLEDGED AND APPROVED SUBJECT TO THE TERMS AND LIMITATIONS OF THAT CERTAIN GUARANTY OF EVEN
DATE HEREWITH BY THE UNDERSIGNED GUARANTOR IN FAVOR OF LENDER, INCLUDING WITHOUT LIMITATION THE
LIMIT ON GUARANTOR’S LIABILITY OF THE LESSER OF ONE MILLION DOLLARS OR THE GUARANTEED PAYMENT:

	 	 	 	 	 
	 	GUARANTOR:

Steadfast Income REIT, Inc.

 	 
	 	By:  	/s/  Rodney
F. Emery	 
	 	 	Name:  	Rodney
F. Emery 	 
	 	 	Title:  	Chief
Executive Officer 	 
	 

	 	 	 	 	 

	STATE OF _____________

	 	)	 	 
	 

	 	) SS.

	COUNTY OF _________

	 	)	 	 

     This instrument was acknowledged before me on this ___ day of December, 2010 by
____________ as ____________ of Steadfast Income REIT, Inc.

[See
Attached Certificate]                

Notary Public in and for the State of ______

9exv10w3

Exhibit 10.3

MORTGAGE, ASSIGNMENT OF LEASES AND RENTS,

SECURITY AGREEMENT AND

FIXTURE FINANCING STATEMENT

Preparer Information: Thomas L. Flynn, Belin McCormick, P.C., 666 Walnut Street, Ste. 2000, Des
Moines, Iowa 50309; 515-283-4605

Taxpayer Information: SIR Park Place, LLC, 18100 Von Karman Avenue, Suite 500, Irvine, California

Return Document To: Thomas L. Flynn, Belin McCormick, P.C., 666 Walnut Street, Ste. 2000, Des
Moines, Iowa 50309; 515-283-4605

	 	 	 	 	 
	Mortgagor:

	 	Mortgagee:
	 	 
	 
	 	 	 	 
	SIR Park Place, LLC

	 	Ames Community Bank
	 	 

Legal Description: See Exhibit A on Page 18.

Document or instrument number of previously recorded documents: N/A.

NOTE: This cover page is prepared in compliance with Iowa Code Section 331.606B, (2009). This
cover page is provided for information purposes only.

 

 

MORTGAGE, ASSIGNMENT OF LEASES AND RENTS,

SECURITY AGREEMENT AND

FIXTURE FINANCING STATEMENT

          THIS MORTGAGE, ASSIGNMENT OF LEASES AND RENTS, SECURITY AGREEMENT AND FIXTURE FINANCING
STATEMENT (the “Security Instrument”) is made as of the 22nd day of December, 2010, by SIR Park
Place, LLC, an Iowa limited liability company, with offices at 18100 Von Karman Avenue, Suite 500,
Irvine, California (“Borrower”), for the benefit of Ames Community Bank as beneficiary, with
offices at 925 Gateway Drive, Grimes, Iowa 50111 (“Lender”).

This Security Instrument encumbers both real and personal property, contains an after-acquired
property clause and secures present and future loans and advances.

NOTICE: This Mortgage secures credit in the amount of $5,000,000.00. Loans and advances up to
this amount, together with interest are senior to indebtedness to other creditors under
subsequently recorded or filed mortgages and liens.

RECITALS:

          This Security Instrument is given in connection with that certain Loan Agreement, of even date
herewith, between the Borrower and the Lender (as such agreements may be amended, modified or
restated, collectively the “Loan Agreement”) in connection with a loan (the “Loan”) from Lender in
the principal amount of $5,000,000, which matures on December 31, 2013, with two (2) possible one
year extensions to December 31, 2014 and December 31, 2015.

          Borrower desires to secure the payment of the Debt (hereinafter defined) and the performance
of all of Borrower’s obligations under the Note and the other Loan Documents. Capitalized terms
used, but not defined, herein shall have the meanings given to such terms in the Loan Agreement.

ARTICLE I. GRANTS OF SECURITY

Section 1.01
Property Mortgaged and Security Interest Granted. Borrower does
hereby irrevocably (i) mortgage, grant, bargain, sell, pledge, assign, warrant, transfer and
convey, and (ii) grant a Security Interest to Lender the following property, rights, interests and
estates now owned, or hereafter acquired by Borrower (collectively, the “Property”):

	 	(a)	 	Premises. The real property described in Exhibit A attached hereto and made a
part hereof (the “Premises” or the “Real Property”);
	 
	 	(b)	 	Additional Land. All additional lands, estates and development rights
hereafter acquired by Borrower for use in connection with the Premises and the development
of the

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	 	 	 	Premises that may, from time to time, by supplemental security instrument or otherwise be
expressly made subject to the Lien of this Security Instrument;

	 	(c)	 	Improvements. All buildings, structures, fixtures, additions, enlargements,
extensions, modifications, repairs, replacements and improvements now or hereafter erected
or located on the Premises, including, but not limited to, all apparatus, equipment, and
appliances used in the operation or occupancy of the real property described above, it
being intended by the parties that all such items shall be conclusively considered to be a
part of the Premises, whether or not attached or affixed to the Premises (the
“Improvements”); together with all mineral, oil and gas and other hydrocarbon substances
in, on or under the Premises;
	 
	 	(d)	 	After Acquired Property. All property acquired by Borrower after the date of
this Security Instrument for use in connection with the Premises which by the terms of this
Security Instrument shall be subject to the Lien and/or the security interest created
hereby, shall immediately upon the acquisition thereof by Borrower and without any further
mortgage, conveyance or assignment become subject to the Lien and security interest created
by this Security Instrument;
	 
	 	(e)	 	Easements. All easements, rights-of-way or use, rights, strips and gores of
land, streets, ways, alleys, passages, sewer rights, water, water courses, water rights and
powers, air rights and development rights and credits, and all estates, rights, titles,
interests, privileges, liberties, servitudes, tenements, hereditaments and appurtenances of
any nature whatsoever, in any way now or hereafter belonging, relating or pertaining to the
Premises and the Improvements and the reversion and reversions, remainder and remainders,
and all land lying in the bed of any street, road or avenue, opened or proposed, in front
of or adjoining the Premises, to the center line thereof and all the estates, rights,
titles, interests, dower and rights of dower, curtesy and rights of curtesy, property,
possession, claim and demand whatsoever, both at law and in equity, of Borrower of, in and
to the Premises and the Improvements and every part and parcel thereof, with the
appurtenances thereto; and all interest or estate which Borrower may hereafter acquire in
the property described above, and all additions and accretions thereto, and the proceeds of
any of the foregoing;
	 
	 	(f)	 	Fixtures and Personal Property. All goods, furnishings, work in progress,
machinery, equipment, fixtures (including all heating, air conditioning, plumbing,
lighting, communications and elevator fixtures) and other property of every kind and nature
whatsoever owned by Borrower, or in which Borrower has or shall have an interest, now or
hereafter located upon the Premises or the Improvements, or appurtenant thereto, and used
in connection with the present or future operation and occupancy of the Premises and the
Improvements and all building equipment, materials and supplies of any nature whatsoever
owned by Borrower, or in which Borrower has or shall have an interest, now or hereafter
located upon the Premises and the Improvements, or appurtenant thereto, or used in
connection with the present or future operation and occupancy of the Premises and the
Improvements (collectively, the “Personal Property”), and the right, title and interest of
Borrower in and to any of the Personal Property which may be subject to any security
interests, as defined in the Uniform Commercial Code, as adopted and enacted

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	 	 	 	by the state or states where any of the Premises is located (the “Uniform Commercial Code”),
superior in lien to the Lien of this Security Instrument and all proceeds and products of
the above;

	 	(g)	 	Leases and Rents. All current and future leases, rental agreements, occupancy
agreements and other agreements of whatever form now or hereafter affecting the use,
enjoyment or occupancy of, or the conduct of any activity upon or in, all or any part of
the Premises or the Improvements, including any guaranties, extensions, renewals,
replacements or modifications thereof, whether before or after the filing by or against
Borrower of any petition for relief under 11 U.S.C. § 101 et seq. (the “Bankruptcy Code”),
as the same may be amended from time to time (the “Leases”) and all rents, rent
equivalents, moneys payable as damages or in lieu of rent or rent equivalents, royalties
(including all oil and gas or other mineral royalties and bonuses), income, receivables,
receipts, revenues, deposits (including security, utility and other deposits), accounts,
cash, issues, fees, profits, charges for services rendered, and other consideration of
whatever form or nature received by or paid to or for the account of or benefit of Borrower
or its agents or employees from any and all sources (including any warrants, stock options
or other rights granted to Borrower, any Principal or their Affiliates in connection with
any Lease) arising from or attributable to the Premises and the Improvements, together with
all proceeds from the sale or other disposition of the Leases and the right to receive and
apply the Rents to the payment of the Debt and all right, title and interest of Borrower,
its successors and assigns therein and thereunder, including all guarantees, letters of
credit and any other credit support given by any guarantor in connection therewith, cash or
securities deposited under the Leases to secure the performance by the lessees of their
obligations thereunder and all rents, additional rents, revenues, issues and profits
(including all oil and gas or other mineral royalties and bonuses) from the Premises and
the Improvements whether paid or accruing before or after the filing by or against Borrower
of any petition for relief under the Bankruptcy Code (collectively, the “Rents”) and all
proceeds from the sale or other disposition of the Leases and the right to receive and
apply the Rents to the payment of the Debt;
	 
	 	(h)	 	Condemnation Awards. All awards or payments, including interest thereon, which
may heretofore and hereafter be made with respect to the Premises, whether from the
exercise of the right of eminent domain (including any transfer made in lieu of or in
anticipation of the exercise of the right), or for any other injury to or decrease in the
value of the Premises;
	 
	 	(i)	 	Insurance Proceeds. All proceeds of and any unearned premiums on any insurance
policies covering the Premises, including the right to receive and apply the proceeds of
any insurance judgments, or settlements made in lieu thereof, for damage to the Property;
	 
	 	(j)	 	Tax Certiorari. All refunds, rebates or credits in connection with a reduction
in real estate taxes and assessments charged against the Premises as a result of tax
certiorari or any applications or proceedings for reduction;
	 
	 	(k)	 	Rights. The right, in the name and on behalf of Borrower, to commence any
action or proceeding to protect the interest of Lender in the Premises and while an Event
of Default

4

 

	 	 	 	remains uncured, to appear in and defend any action or proceeding brought with respect to
the Premises;

	 	(l)	 	Agreements. All agreements, contracts, certificates, instruments, franchises,
permits, licenses, plans, specifications and other documents, now or hereafter entered
into, and all rights therein and thereto, respecting or pertaining to the use, occupation,
construction, management or operation of the Premises and any part thereof and any
Improvements or respecting any business or activity conducted on the Property and any part
thereof.
	 
	 	(m)	 	Service Rights. Any agreements, contracts, rights, licenses or other interests
of any type (collectively, the “Service Rights”) (whether exclusive or non-exclusive)
granted or given to any Person to provide any products or services to or for or with
respect to the Premises, any Tenant or any occupants of the Premises, including any of the
same related to telecommunications, internet products or services, including, but not
limited to, personal computer hardware and software, internet hardware and software,
internet access services, printers, video display systems, audio sound systems and
communication telephonic devices, as well as related and complementary products and
services and any substitutes for, and items that are a technological evolution of, any of
the foregoing products.
	 
	 	(n)	 	Intangibles. All accounts, escrows, documents, instruments, chattel paper,
claims, deposits and other general intangibles, as the foregoing terms are defined in the
Uniform Commercial Code of the state in which the Property is located (hereinafter
collectively referred to as the “Intangibles”);
	 
	 	(o)	 	Options. All options to purchase and rights of first refusal to purchase or
acquire a fee estate, easement interest or other real property right to land, both vacant
and improved, adjoining the Premises now or hereafter in effect; and
	 
	 	(p)	 	Proceeds. All proceeds, products, offspring, rents and profits from any of the
foregoing, including those from sale, exchange, transfer, collection, loss, damage,
disposition, substitution or replacement of any of the foregoing.

     As to all of the above-described Property which is or which hereafter becomes a “fixture”
under applicable law, this Mortgage constitutes a fixture filing under the UCC, as amended or
recodified from time to time.

Section 1.02 Pledge of Monies Held. Borrower hereby pledges to Lender, and grants
to Lender a security interest in, any and all monies now or hereafter held by Lender pursuant to
the Loan Agreement or the other Loan Documents as additional security for the Obligations until
expended or applied or required to be applied as provided in this Security Instrument, the Loan
Agreement and the other Loan Documents.

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CONDITIONS TO GRANT

          TO HAVE AND TO HOLD the above granted and described Property unto the Lender, and the
successors and assigns of Lender, forever;

          PROVIDED, HOWEVER, these presents are upon the express condition that, if Borrower shall well
and truly pay to Lender the Debt at the time and in the manner provided in the Note, this Security
Instrument and the other Loan Documents, shall well and truly perform the Other Obligations as set
forth in this Security Instrument and the other Loan Documents and shall well and truly abide by
and comply with each and every covenant and condition set forth in the Loan Documents, these
presents and the estate hereby granted shall cease, terminate and be void.

ARTICLE II. DEBT AND OBLIGATIONS SECURED

Section 2.01
Debt. This Security Instrument and the grants, assignments and
transfers made in Article I are given for the purpose of securing the following, in such order of
priority as Lender may determine in its sole discretion (the “Debt”): (1) all principal, interest
and other amounts due under or secured by the Loan Documents; (2) the payment of all other monies
agreed or provided to be paid by Borrower in the Note or the other Loan Documents; (3) the payment
of all sums advanced pursuant to this Security Instrument to protect and preserve the Property and
the Lien and the security interest created hereby; (4) the payment of all sums advanced and costs
and expenses incurred by Lender in connection with the Debt or any part thereof, any renewal,
extension, modification, consolidation, change, substitution, replacement, restatement or increase
of the Debt or any part thereof, or the acquisition or perfection of the security therefor, whether
made or incurred at the request of Borrower or Lender (including, without limitation, (i)
modifications of the required principal payment dates or interest payment dates or both, as the
case may be, deferring or accelerating payment dates wholly or partly; or (ii) modifications,
extensions or renewals at a different rate of interest whether or not in the case of a note, the
modification, extension or renewal is evidenced by a new or additional promissory note or notes);
(5) all principal, interest, and other amounts which may hereafter be loaned by Lender, its
successors or assigns, to or for the benefit of the owner of the Property, when evidenced by a
promissory note or other instrument which, by its terms, is secured hereby; (6) all other
indebtedness, obligations and liabilities now or hereafter existing of any kind of Borrower to
Lender under documents which recite that they are intended to be secured by this Security
Instrument; (7) payment and performance of all covenants and obligations arising under or by virtue
of the Loan Documents, if any, and (8) this Security Instrument is specifically intended to include
any indebtedness of Borrower to Lender which exists as of the date of this Security Instrument or
which may hereafter be incurred by Borrower to Lender in connection with the Loan Documents.

Section 2.02
Debt and Other Obligations. This Security Instrument and the grants,
assignments and transfers made in Article I are also given for the purpose of securing the
performance of all of the agreements, covenants, conditions, warranties, representations and other
obligations (other than to repay the Debt) made or undertaken by Borrower or any other Person to
Lender or others as set forth in the Loan Documents. The obligations of Borrower and

6

 

all other Persons for the payment of the Debt and the performance of the Other Obligations shall be
referred to herein collectively as the “Obligations.” The term “Obligations” is used herein in its
broadest and most comprehensive sense and shall be deemed to include, without limitation, all
interest and charges, prepayment premiums (if any), late charges and loan fees at any time accruing
or assessed on any of the Debt or Loan.

Section 2.03
Payments. Unless payments are made in the required amount in
immediately available funds at the place where the Note is payable, remittances in payment of all
or any part of the Debt shall not, regardless of any receipt or credit issued therefor, constitute
payment until the required amount is actually received by Lender in funds immediately available at
the place where the Note is payable (or any other place as Lender, in Lender’s sole discretion, may
have established by delivery of written notice thereof to Borrower) and shall be made and accepted
subject to the condition that any check or draft may be handled for collection in accordance with
the practice of the collecting bank or banks. Acceptance by Lender of any payment in an amount
less than the amount then due shall be deemed an acceptance on account only, and the failure to pay
the entire amount then due shall be and continue to be an Event of Default.

ARTICLE III. BORROWER COVENANTS

          Borrower covenants and agrees with Lender that:

Section 3.01 Payment of Debt. Borrower will pay the Debt at the time and in the
manner provided in the Note and the other Loan Documents.

Section 3.02 Warranty of Title. Borrower hereby warrants that: (a) except for the
Permitted Encumbrances, Borrower has good, marketable and insurable fee simple title to the
Property, including the right to encumber the Property; (b) Borrower has the full power, authority
and right to execute, deliver and perform its Obligations under this Security Instrument and to
encumber, grant, bargain, sell, convey, assign and mortgage the Property in the manner and form
hereby done or intended; (c) Borrower possesses an unencumbered fee simple estate in the Premises
and the Improvements and Borrower owns the Property free and clear of all Liens, encumbrances and
charges whatsoever except for the Permitted Encumbrances and those exceptions accepted by Lender as
shown in the title opinion insuring the Lien of this Security Instrument; and (d) this Security
Instrument is and will remain a valid and enforceable first and senior Lien on and security
interest in the Property. Borrower shall forever warrant, defend and preserve such title and the
validity and priority of the Lien of this Security Instrument and shall forever warrant and defend
the same to Lender against the claims of all Persons whomsoever. The foregoing warranty of title
shall survive the foreclosure of this Security Instrument and shall inure to the benefit of and be
enforceable by Lender in the event Lender acquires title to the Property pursuant to any
foreclosure or deed in lieu of foreclosure or otherwise.

Section 3.03 Incorporation by Reference. All the covenants, conditions, terms,
provisions and agreements contained in (a) the Note and (b) the other Loan Documents, are hereby
made a part of this Security Instrument to the same extent and with the same force as if fully set
forth herein. All Persons who may have or acquire an interest in the Property shall be deemed to
have notice of the terms of the Obligations and to have notice, if provided therein, that the Note
or the

7

 

Loan Agreement may permit borrowing, repayment and re-borrowing so that repayments shall not reduce
the amounts of the Obligations.

ARTICLE IV. FURTHER ASSURANCES

Section 4.01 Recording of Security Instrument, Etc. Borrower forthwith upon the
execution and delivery of this Security Instrument and thereafter, from time to time, will cause
this Security Instrument and any of the other Loan Documents (including all UCC financing
statements) creating a Lien or security interest or evidencing the Lien hereof upon the Property
and each instrument of further assurance to be filed, registered or recorded in such manner and in
such places as may be required by any present or future law in order to publish notice of and fully
to protect and perfect the Lien or security interest hereof upon, and the interest of Lender in,
the Property.

Section 4.02 Further Acts. Borrower will, at the sole cost and expense of
Borrower, and without any cost or expense to Lender, do, execute, acknowledge and deliver all and
every such further acts, deeds, conveyances, mortgages, assignments, notices of assignments,
transfers and assurances as Lender shall, from time to time, reasonably require, for the better
assuring, conveying, assigning, transferring, and confirming unto Lender, the Property and rights
hereby mortgaged, granted, bargained, sold, conveyed, confirmed, pledged, assigned, warranted and
transferred or intended now or hereafter so to be, or which Borrower may be or may hereafter become
bound to convey or assign to Lender, or for carrying out the intention or facilitating the
performance of the terms of this Security Instrument or for filing, registering or recording this
Security Instrument, or for complying with all Legal Requirements.

Section 4.03 Changes in Tax, Debt Credit and Documentary Stamp Laws. If any law is
enacted or adopted or amended after the date of this Security Instrument which deducts the Debt
from the value of the Property for the purpose of taxation or which imposes a tax, either directly
or indirectly, on the Debt or Lender’s interest in the Property, Borrower will pay the tax, with
interest and penalties thereon, if any.

ARTICLE V. ASSIGNMENT OF RENTS

Section 5.01 Assignment of Rents. Borrower hereby absolutely and unconditionally
assigns to Lender all of Borrower’s right, title and interest in and to all current and future
Leases and Rents. Nevertheless, subject to the terms of this Article V, Lender grants to Borrower
a revocable license to collect, receive and apply the Rents in accordance with the Loan Agreement
and the other Loan Documents. Borrower shall hold the Rents, or a portion thereof, sufficient to
discharge all current sums due on the Debt, for use in the payment of such sums. Lender agrees not
to revoke the license to collect rents unless an uncured Event of Default has occurred pursuant to
the Loan Documents.

8

 

ARTICLE VI. SECURITY AGREEMENT

Section 6.01 Security Agreement. This Security Instrument is both a mortgage in
real property and a “security agreement” within the meaning of the Uniform Commercial Code. The
Property includes both real and personal property and all other rights and interests, whether
tangible or intangible in nature, of Borrower in the Property. Borrower by executing and
delivering this Security Instrument has granted and hereby grants to Lender, as security for the
Obligations, a security interest in the Property to the full extent that the Property may be
subject to the Uniform Commercial Code (said portion of the Property so subject to the Uniform
Commercial Code being referred to in this Paragraph as the “Collateral”). This Security Instrument
shall also constitute a “fixture filing” for the purposes of the Uniform Commercial Code. As such,
this Security Instrument covers all items of the Collateral that are or are to become fixtures.
Information concerning the security interest herein granted may be obtained from the parties at the
addresses of the parties set forth above. If an Event of Default shall occur, Lender, in addition
to any other rights and remedies which it may have, shall have and may exercise, immediately and
without demand, any and all rights and remedies granted to a secured party upon default under the
Uniform Commercial Code, including the right to take possession of the Collateral or any part
thereof and to take such other measures as Lender may deem necessary for the care, protection and
preservation of the Collateral or the sale thereof. Upon request or demand of Lender, Borrower
shall at its expense assemble the Collateral and make it available to Lender at a convenient place
acceptable to Lender. Borrower shall pay to Lender on demand any and all expenses, including
attorneys’ fees and disbursements, incurred or paid by Lender in protecting its interest in the
Collateral and in enforcing its rights hereunder with respect to the Collateral. The proceeds of
any disposition of the Collateral, or any part thereof, may be applied by Lender to the payment of
the Debt in such priority and proportions as Lender in its sole discretion shall deem proper. In
the event of any change in name, identity or structure of Borrower, Borrower shall notify Lender
thereof and promptly after request shall execute, file and record such Uniform Commercial Code
forms as are necessary to maintain the priority of Lender’s lien upon and security interest in the
Collateral and shall pay all expenses and fees in connection with the filing and recording thereof.
If Lender shall require the filing or recording of additional Uniform Commercial Code forms or
continuation statements, Borrower shall, promptly after request, execute, file and record such
Uniform Commercial Code forms or continuation statements as Lender shall deem necessary, and shall
pay all expenses and fees in connection with the filing and recording thereof. Borrower hereby
irrevocably appoints Lender as its attorney-in-fact, coupled with an interest, to file with the
appropriate public office on Borrower’s behalf any financing or other statements signed only by
Lender, as secured party, in connection with the Collateral covered by this Security Instrument,
and Borrower hereby acknowledges and agrees that Borrower shall have no claim or cause of action
against Lender arising out of Lender’s execution and/or recordation of any instruments by or on
behalf of Borrower pursuant to the foregoing power of attorney. Any notice of sale, disposition or
other intended action by Lender with respect to the Collateral sent to Borrower in accordance with
Section 13.1 at least two (2) Business Days prior to such action, shall constitute commercially
reasonable notice to Borrower.

9

 

ARTICLE VII. DUE ON SALE/ENCUMBRANCE

Section 7.01 No Sale/Encumbrance. Except as specifically permitted by the Loan
Agreement, Borrower agrees that Borrower shall not, without the prior written consent of Lender,
sell, convey, mortgage, grant, bargain, encumber, pledge, assign, or otherwise transfer the
Property or any part thereof or permit the Property or any part thereof to be sold, conveyed,
mortgaged, granted, bargained, encumbered, pledged, assigned, or otherwise transferred. Borrower
further agrees that Borrower will not allow any Transfer or other similar action prohibited by the
Loan Agreement. If Borrower violates the terms of this provision, Lender, in Lender’s sole and
absolute discretion, may declare all Obligations immediately due and payable.

ARTICLE VIII. PREPAYMENT

Section 8.01 Prepayment Only in Accordance with Note. The Debt may be prepaid in
accordance with the terms and conditions of the Note and the Loan Agreement.

ARTICLE IX. DEFAULT

Section 9.01 Events of Default. The occurrence of any one or more of the following
events shall constitute an “Event of Default”:

	 	(a)	 	if any portion of the Debt is not paid before such failure constitutes an Event
of Default as defined in the Loan Agreement or if the entire Debt is not paid on or
before the Maturity Date; or

	 	(b)	 	the occurrence of any other Event of Default as defined in the Loan Agreement
or the Loan Documents.

ARTICLE
X. RIGHTS AND REMEDIES

Section 10.01 Remedies.

	 	(a)	 	Upon the occurrence of any Event of Default, Lender may take such action,
without notice or demand, as Lender deems advisable to protect and enforce the rights
of Lender against Borrower and in and to the Property, including the following actions,
each of which may be pursued concurrently or otherwise, at such time and in such order
as Lender may determine, in its sole discretion, without impairing or otherwise
affecting the other rights and remedies of Lender.
	 
	 	i.	 	Declare the entire Debt and all other Obligations to be immediately due
and payable;
	 
	 	ii.	 	institute a proceeding or proceedings, judicial or nonjudicial, for the
foreclosure of the Security Instrument under applicable Legal Requirements in which
case the

10

 

	 	 	 	Property or any interest therein may be sold for cash or upon credit in one or more
parcels or in several interests or portions and in any order or manner, and to apply
the proceeds received upon the Obligations in such order and manner as Lender,
determines in its sole discretion;

	 	iii.	 	with or without entry, to the extent permitted and pursuant to the
procedures provided by applicable Legal Requirements, institute proceedings for the
partial foreclosure of this Security Instrument for the portion of the Debt then due
and payable, subject to the continuing Lien and security interest of this Security
Instrument for the balance of the Debt not then due unimpaired and without loss of
priority;
	 
	 	iv.	 	institute an action, suit or proceeding in equity for the specific
performance of any covenant, condition or agreement contained herein, or in any of
the other Loan Documents;
	 
	 	v.	 	recover judgment on the Note either before, during or after any
proceedings for the enforcement of this Security Instrument or the other Loan
Documents;
	 
	 	vi.	 	apply for the appointment of a receiver, without notice and without
regard for the adequacy of the security for the Debt or the Obligations and without
regard for the solvency of the Borrower, Guarantor or of any Person liable for the
payment of the Debt, without the necessity of a declaration that the Debt and/or the
Obligations are immediately due and payable, and Borrower hereby consents to such
appointment. Any such appointment shall be without bond being required of the
person appointed;
	 
	 	vii.	 	subject to any applicable Legal Requirement, the license granted to
Borrower under Section 5.1 shall automatically be revoked and Lender may enforce
Lender’s interest in the Leases and Rents (including revocation of any license
granted to Borrower) and enter into or upon the Property, either personally or by
its agents, nominees or attorneys and dispossess Borrower and its agents and
servants therefrom, without becoming a mortgagee in possession and without liability
for trespass, damages or otherwise and exclude Borrower and its agents or servants
wholly therefrom, and take possession of all books, records, papers and accounts
relating thereto and Borrower agrees to surrender possession of the Property and of
such books, records, papers and accounts to Lender upon demand, and thereupon Lender
may, with or without notice, without releasing Borrower from any Obligations, and
without any obligation to do so, cure any breach or Event of Default;
	 
	 	viii.	 	Lender may proceed at its election, in any sequence: (a) to dispose of
any Collateral separately from the sale of the Property in accordance with the UCC
or other applicable Legal Requirements, and (b) to dispose of some or all of the
Property in any combination consisting of both real and personal property together
in one or more sales to be held in accordance with the UCC or other applicable Legal
Requirements; or

11

 

	 	ix.	 	pursue or enforce any other right or remedy allowed by any Loan Document
or applicable Legal Requirements including those rights and remedies available to a
secured party under the UCC or other applicable Legal Requirements.
	 
	 	(b)	 	Borrower hereby agrees that in the event of judicial or nonjudicial
foreclosure, Lender, may at its sole option, in addition to any other remedy provided
in the Loan Documents or by law, elect:
	 
	 	i.	 	Pursuant to Section 628.26 of the Iowa Code, to reduce the period of
redemption after sale on foreclosure to six months; or
	 
	 	ii.	 	Pursuant to Section 628.27 of the Iowa Code, to reduce the period of
redemption after sale on foreclosure to sixty days; or
	 
	 	iii.	 	Pursuant to Section 628.28 of the Iowa Code, or any other Iowa Code
Section, to reduce the period of redemption after sale on foreclosure to such time
as may then be applicable or provided by law; or
	 
	 	iv.	 	Pursuant to Section 654.20 of the Iowa Code, or any other Iowa Code
Section, to foreclose without redemption; or
	 
	 	v.	 	Pursuant to Chapter 655A of the Iowa Code, foreclose non-judicially.
	 
	 	(c)	 	In the event of a sale, by foreclosure or otherwise, of less than all of the
Property, this Security Instrument shall continue as a Lien and security interest on
the remaining portion of the Property unimpaired and without loss of priority.
	 
	 	(d)	 	Upon the occurrence of any Event of Default, Lender may, but without any
obligation to do so and without notice to or demand on Borrower and without releasing
Borrower from any Obligation, cure the same in such manner and to such extent as Lender
may deem necessary to protect the security hereof. Lender is authorized to enter upon
the Property for such purposes, or appear in, defend, or bring any action or proceeding
to protect Lender’s interest in the Property or to foreclose this Security Instrument
or collect the Debt.
	 
	 	(e)	 	All costs and expenses of Lender in exercising its rights and remedies under
this Section 10.1 or incurred as a result of any of the events described in Section 7
of the Loan Agreement, including reasonable attorneys’ fees and disbursements to the
extent permitted by law, shall be paid by Borrower immediately upon notice from Lender,
with interest at the Default Rate for the period after notice from Lender and such
costs and expenses shall constitute a portion of the Debt and shall be secured by this
Security Instrument and shall be immediately due and payable upon demand by Lender
therefor.
	 
	 	(f)	 	The interests and rights of Lender under the Note, this Security Instrument or
in any of the other Loan Documents shall not be impaired by any indulgence, including
(i)

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	 	 	 	any renewal, extension or modification which Lender may grant with respect to any of
the Debt, (ii) any surrender, compromise, release, renewal, extension, exchange or
substitution which Lender may grant with respect to the Property or any portion
thereof; (iii) any modification, waiver or failure to enforce any provisions of the
Loan Documents; or (iv) any release or indulgence granted to any maker, endorser,
Guarantor, indemnitor or surety of any of the Debt.

Section 10.02 Other Rights.

	 	(a)	 	The failure of Lender to insist upon strict performance of any term hereof,
shall not be deemed to be a waiver of such term or any other term of this Security
Instrument or the other Loan Documents. Borrower shall not be relieved of Borrower’s
obligations hereunder by reason of (i) the failure of Lender to comply with any request
of Borrower or Guarantor to take any action to foreclose this Security Instrument or
otherwise enforce any of the provisions hereof or of the Note or the other Loan
Documents, (ii) the release, regardless of consideration, of the whole or any part of
the Property, or of any Person liable for the Debt or any portion thereof, or (iii) any
agreement or stipulation by Lender extending the time of payment or otherwise modifying
or supplementing the terms of the Note, this Security Instrument or the other Loan
Documents.

	 	(b)	 	It is agreed that Borrower bears the risk of loss or damage to the Property,
and Lender shall have no liability whatsoever for decline in value of the Property, for
failure to maintain the Policies, or for failure to determine whether insurance in
force is adequate as to the amount of risks insured. Possession by Lender shall not be
deemed an election of judicial relief, if any such possession is requested or obtained,
with respect to any Property or Collateral not in Lender’s actual and/or physical
possession.

	 	(c)	 	Lender may resort for the payment of the Debt to any security held by Lender in
such order and manner as Lender, in its sole discretion, may elect. Lender may take
action to recover the Debt or any portion thereof, or to enforce any covenant hereof
without prejudice to the right of Lender thereafter to foreclose this Security
Instrument. The rights of Lender under this Security Instrument shall be separate,
distinct and cumulative and none shall be given effect to the exclusion of the others.
No act of Lender shall be construed as an election to proceed under any one provision
herein to the exclusion of any other provision. Lender shall not be limited
exclusively to the rights and remedies herein stated but shall be entitled to every
right and remedy now or hereafter afforded at law or in equity.

Section 10.03 Right to Release Any Portion of the Property. Lender may release any
portion of the Property, for such consideration as Lender may require (or as may be required
pursuant to the Loan Agreement) without, as to the remainder of the Property, in any way impairing
or affecting the Lien or priority of this Security Instrument, or improving the position of any
subordinate lien holder with respect thereto, except to the extent that the obligations hereunder
shall have been reduced by the actual monetary consideration, if any, received by Lender for such
release, and may accept by assignment, pledge or otherwise any other property in place

13

 

thereof as Lender may require without being accountable for so doing to any other lien holder.
This Security Instrument shall continue as a Lien and security interest in the remaining portion of
the Property.

Lender hereby consents to the transfer of the portion of the Real Property legally described as Lot
7 in Division 2 GRIMMEL’S ADDITION TO THE TOWN OF FORT DES MOINES, an Official Plat, now included
in and forming a part of the City of Des Moines, Polk County, Iowa, provided a release price equal
to 100% of net sales proceeds (not less than $50,000 or such lesser amount as may be reasonably
acceptable to Lender) shall be paid to Lender and applied by Lender to the reduction of the
outstanding principal balance of the Loan. For the purposes hereof, net sales proceeds shall equal
the gross sale price for the property to be sold less transfer taxes and other closing costs and
fees customarily and normally paid by a seller, including, without limitation, Seller’s brokerage
commissions to unrelated third party brokers at then prevailing market rates and federal, state or
other excise taxes paid or assessable.

ARTICLE XI. WAIVERS

Section 11.01 Waiver of Trial by Jury. EACH PARTY TO THIS AGREEMENT HEREBY
EXPRESSLY WAIVES ANY RIGHT TO TRIAL BY JURY OF ANY CLAIM, DEMAND, ACTION OR CAUSE OF ACTION (A)
ARISING UNDER THE LOAN DOCUMENTS, INCLUDING, WITHOUT LIMITATION, ANY PRESENT OR FUTURE MODIFICATION
THEREOF OR (B) IN ANY WAY CONNECTED WITH OR RELATED OR INCIDENTAL TO THE DEALINGS OF THE PARTIES
HERETO OR ANY OF THEM WITH RESPECT TO THE LOAN DOCUMENTS (AS NOW OR HEREAFTER MODIFIED) OR ANY
OTHER INSTRUMENT, DOCUMENT OR AGREEMENT EXECUTED OR DELIVERED IN CONNECTION HEREWITH, OR THE
TRANSACTIONS RELATED HERETO OR THERETO, IN EACH CASE WHETHER SUCH CLAIM, DEMAND, ACTION OR CAUSE OF
ACTION IS NOW EXISTING OR HEREAFTER ARISING, AND WHETHER SOUNDING IN CONTRACT OR TORT OR OTHERWISE;
AND EACH PARTY HEREBY AGREES AND CONSENTS THAT ANY PARTY TO THIS AGREEMENT MAY FILE AN ORIGINAL
COUNTERPART OR A COPY OF THIS SECTION WITH ANY COURT AS WRITTEN EVIDENCE OF THE CONSENT OF THE
PARTIES HERETO TO THE WAIVER OF ANY RIGHT THEY MIGHT OTHERWISE HAVE TO TRIAL BY JURY.

Section 11.02 Additional Waivers. Lender may resort to any remedies and the
security given by the Note, this Security Instrument or any of the other Loan Documents, in whole
or in part, and in such portions and in such order as determined by Lender in Lender’s sole
discretion. No such action shall in any way be considered a waiver of any rights, benefits or
remedies evidenced or provided by the Note, this Security Instrument or any of the other Loan
Documents. The failure of Lender to exercise any right, remedy or option provided in the Note,
this Security Instrument or any of the other Loan Documents shall not be deemed a waiver of such
right, remedy or option or of any covenant or obligation secured by the Note, this Security
Instrument or any of the other Loan Documents. No acceptance by Lender of any payment after the
occurrence of any Event of Default and no payment by Lender of any obligation for which Borrower is
liable hereunder shall be deemed to waive or cure any Event of Default with respect

14

 

to Borrower, or Borrower’s liability to pay such obligation. No sale of all or any portion of
the Property, no forbearance on the part of Lender and no extension of time for the payment of the
whole or any portion of the Debt, or any other indulgence given by Lender to Borrower, shall
operate to release or in any manner affect the interest of Lender in the remaining Property or the
liability of Borrower to pay the Debt. No waiver by Lender shall be effective unless it is in
writing and then only to the extent specifically stated. In case Lender shall have proceeded to
invoke any right, remedy or recourse permitted hereunder or under any of the other Loan Documents
and shall thereafter elect to discontinue or abandon the same for any reason, Lender shall have the
unqualified right to do so and, in such event, Borrower and Lender shall be restored to their
former positions with respect to the Debt secured hereby, this Security Instrument, the other Loan
Documents, the Property and otherwise, and the rights, remedies, recourses and powers of Lender
shall continue as if the same had never been invoked.

Section 11.03 Borrower’s Waivers. Borrower waives, to the extent permitted by
law, (a) the benefit of all laws now existing or that may hereafter be enacted providing for any
appraisement before sale of any portion of the Property, (b) all rights and remedies which Borrower
may have or be able to assert by reason of the laws of the state where the Property is located
pertaining to the rights and remedies of sureties, (c) any rights, legal or equitable, to require
marshalling of assets or to require foreclosure sales in a particular order. Lender shall have the
right to determine the order in which any portion of the Property is subject to the remedies herein
and the order in which the Obligations are satisfied by proceeds realized by such remedies.

ARTICLE XII. EXCULPATION

Section 12.01 Exculpation. The provisions of Article IX of the Loan Agreement are
hereby incorporated by reference to the fullest extent as if the text of such Article were set
forth in its entirety herein.

ARTICLE XIII. NOTICES

Section 13.01 Notices. All notices given under this Security Instrument shall be
given and become effective as provided in the Loan Agreement.

ARTICLE XIV. APPLICABLE LAW

Section 14.01 Choice of Law. This Security Instrument shall be interpreted,
construed and enforced according to the laws of the State of Iowa with enforcement in the Iowa
District Court in the county in which the Real Property is located. All parties submit themselves
to the jurisdiction of said Court.

Section 14.02 Provisions Subject to Applicable Law. All rights, powers and
remedies provided in this Security Instrument may be exercised only to the extent that the exercise
thereof does not violate any applicable Legal Requirements and are intended to be limited to the
extent necessary so that they will not render this Security Instrument invalid, unenforceable or
not entitled to be recorded, registered or filed under the provisions of any Legal Requirements.

15

 

ARTICLE XV. MISCELLANEOUS PROVISIONS

Section 15.01 Survival. This Security Instrument and all covenants, agreements,
representations and warranties made herein and in the certificates delivered in connection with the
Loan Documents shall survive the making by Lender of the Loan and the execution and delivery to
Lender of the Note, and shall continue in full force and effect so long as all or any of the Debt
is outstanding and unpaid unless a longer period is expressly set forth herein or in the other Loan
Documents. Whenever in this Security Instrument any of the parties hereto is referred to, such
reference shall be deemed to include the legal representatives, successors and assigns of such
party. All covenants, promises and agreements in this Security Instrument, by or on behalf of
Borrower, shall inure to the benefit of the legal representatives, successors and assigns of
Lender.

Section 15.02 No Oral Change. No modification, amendment, extension, discharge,
termination or waiver of any provision of this Security Instrument, the Note, or any other Loan
Document, nor consent to any departure by Lender therefrom, shall in any event be effective unless
the same shall be in a writing signed by the party against whom enforcement is sought, and then
such waiver or consent shall be effective only in the specific instance, and for the purpose, for
which given. Except as otherwise expressly provided herein, no notice to or demand on Borrower,
shall entitle Borrower to any other or future notice or demand in the same, similar or other
circumstances.

Section 15.03 Duplicate Originals; Counterparts. This Security Instrument may be
executed in any number of duplicate originals and each duplicate original shall be deemed to be an
original. This Security Instrument may be executed in several counterparts, each of which
counterparts shall be deemed an original instrument and all of which together shall constitute a
single Security Instrument. The failure of any party hereto to execute this Security Instrument,
or any counterpart hereof, shall not relieve the other signatories from their obligations
hereunder.

Section 15.04 Number and Gender. Whenever the context may require, any pronouns
used herein shall include the corresponding masculine, feminine or neuter forms, and the singular
form of nouns and pronouns shall include the plural and vice versa.

Section 15.05 Headings, Etc. The headings and captions of various Sections of this
Security Instrument are for convenience of reference only and are not to be construed as defining
or limiting, in any way, the scope or intent of the provisions hereof.

Section 15.06 Inapplicable Provision. If any term of this Security Instrument or
any application thereof shall be invalid or unenforceable, the remainder of this Security
Instrument and any other application of the term shall not be affected thereby.

Section 15.07 Entire Agreement. This Security Instrument and the other Loan
Documents together constitute a written agreement and represent the final agreement between the
parties and may not be contradicted by evidence of prior, contemporaneous or subsequent oral
agreements of the parties. There are no unwritten oral agreements between the parties. Borrower
hereby acknowledges that, except as incorporated in writing in the Note, this Security Instrument
and the other Loan Documents, there are not, and were not, and no Persons are or were authorized by

16

 

Lender to make, any representations, understandings, stipulations, agreements or promises, oral or
written, with respect to the transaction which is the subject of the Note, this Security Instrument
and the other Loan Documents.

Section 15.08 Time. Time is of the essence with respect to all provisions of this
Security Instrument.

Section 15.09 Binding Effect. This Security Instrument shall be binding upon and
inure to the benefit of Borrower and Lender and their respective permitted successors and assigns
forever.

Section 15.10 Exhibits. All exhibits attached hereto are hereby incorporated
herein by reference and made a part of this Security Instrument.

IMPORTANT: READ BEFORE SIGNING. THE TERMS OF THIS AGREEMENT SHOULD BE READ CAREFULLY BECAUSE ONLY
THOSE TERMS IN WRITING ARE ENFORCEABLE. NO OTHER TERMS OR ORAL PROMISES NOT CONTAINED IN THIS
WRITTEN CONTRACT MAY BE LEGALLY ENFORCED. YOU MAY CHANGE THE TERMS OF THIS AGREEMENT ONLY BY
ANOTHER WRITTEN AGREEMENT.

     By signing below, the parties hereto acknowledge that in concurrently received of a copy of
the document and each document referenced herein.

          IN WITNESS WHEREOF, Borrower has duly executed this Security Instrument the day and year first
above written.

[Signature Page Follows]

17

 

	 	 	 	 	 
	 	BORROWER:

SIR Park Place, LLC, an Iowa limited liability company

by: Steadfast Income Advisor, LLC, its Manager

 	 
	 	By:  	/s/  James
Kasim	 
	 	 	Name:  	James Kasim	 
	 	 	Title:  	Chief
Financial Officer 	 
	 

	 	 	 	 	 

	STATE OF _____________

	 	)	 	 
	 

	 	) SS.

	COUNTY OF _________

	 	)	 	 

     This instrument was acknowledged before me on this ___ day of December, 2010 by
____________ as ____________ of Steadfast Income Advisor, LLC, the Manager of
SIR Park Place, LLC.

[See
Attached Certificate]                

Notary Public in and for the State of ______

18

 

	 	 	 	 	 

EXHIBIT A

LEGAL DESCRIPTION

Lot Seven (7) in Division 2 Grimmel’s Addition to the Town of Fort Des Moines, an Official Plat,
now included in and forming a part of the City of Des Moines, Polk County, Iowa.

AND

Units 403 through 409, inclusive, Units 501 and 502, Units 504 through 508, inclusive, Units 510
through 512, inclusive, Units 601 through 612, inclusive, Units 701 through 712, inclusive, Units
801 through 812, inclusive, Units 901 through 912, inclusive, Units 1001, 1002, 1004 and 1005,
Units 1007 through 1012, inclusive, Units 1101 through 1112, inclusive, Units 1201 through 1212,
inclusive, Units 1301 and 1302, Units 1304 through 1312 inclusive, Units 1401 and 1402, Units 1404
through 1412, inclusive, Units 1501 through 1503, inclusive, Units 1506 through 1512, inclusive,
Units 1601 through 1616, inclusive, Garage Units P1 though P20, inclusive, Garage Units P21a and
P21b, Garage Units P22 and P23, Garage Units P25 through P51, inclusive, Garage Units P53 through
P58, inclusive, Garage Units P60a and P60b, Garage Units P62 through P68, inclusive, Garage Units
P69a and 69b, Garage Units P70 through P90, Garage Units P92 through P103, inclusive, together with
percentage interest in the Common Elements as provided in the Declaration of Submission to the
Horizontal Property Regime referred to below, in PARK PLACE CONDO LLC, a Condominium, City of Des
Moines, and County of Polk, Iowa, and located upon Lots 6 and 7 in Block “R” in Grimmel’s Addition
to the Town of Fort Des Moines, in accordance with and subject to the Declaration of Submission to
Horizontal Property Regime, recorded on December 18, 2006 in Book 11997 Page 522 in the records of
the Polk County Iowa recorder as amended.

19

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