Document:

a102securityinstrument20

                                                                          EXHIBIT 10.2   Prepared by, and after recording  return to:  Lauren M. Keefe, Esq.  Krooth & Altman LLP  1850 M Street, NW, Suite 400  Washington, DC 20036   freddie Mac Loan Number: 499673646                             MULTIFAMILY MORTGAGE,                             ASSIGNMENT OF RENTS                           AND SECURITY AGREEMENT                                     ALABAMA                                  (Revised 3-1-2014)  

 

                          MULTIFAMILY MORTGAGE,                              ASSIGNMENT OF RENTS                           AND SECURITY AGREEMENT                                                                              ALABAMA                                                                            (Revised 3-1-2014)         THIS MULTIFAMILY MORTGAGE, ASSIGNMENT OF RENTS AND SECURITY   AGREEMENT (“Instrument”) is made as of the 26th day of September, 2019, between SIR  TAPESTRY PARK, LLC, a limited liability company organized and existing under the laws of  Delaware, whose address is c/o Steadfast Companies, 18100 Von Karman Avenue, Suite 500,  Irvine, California 92612, Attention:  Ana Marie del Rio, General Counsel, as mortgagor  (“Borrower”), and BERKELEY POINT CAPITAL LLC, d/b/a NEWMARK KNIGHT   FRANK, a limited liability company organized and existing under the laws of Delaware, whose   address is 7700 Wisconsin Avenue, Suite 1100, Bethesda, Maryland 20814, as mortgagee   (“Lender”). Borrower’s organizational identification number, if applicable, is 5378320.                                        RECITAL      Borrower is indebted to Lender in the principal amount of $48,750,000.00, as evidenced by   Borrower’s Multifamily Note payable to Lender dated as of the date of this Instrument, and   maturing on October 1, 2029 (“Maturity Date”).                                      AGREEMENT      TO SECURE TO LENDER the repayment of the Indebtedness, and all renewals, extensions and   modifications of the Indebtedness, and the performance of the covenants and agreements of   Borrower contained in the Loan Agreement or any other Loan Document, Borrower mortgages,  warrants, grants, bargains, sells, conveys and assigns to Lender and Lender’s successors and  assigns, with power of sale, the Mortgaged Property, including the Land located in Jefferson  County, State of Alabama, and described in Exhibit A attached to this Instrument. To have and to   hold the Mortgaged Property unto Lender and Lender’s successors and assigns, forever.       Borrower represents and warrants that Borrower is lawfully seized of the Mortgaged Property   and has the right, power and authority to grant, convey and assign the Mortgaged Property, and   that the Mortgaged Property is unencumbered except as shown on the schedule of exceptions to   coverage in the title policy issued to and accepted by Lender contemporaneously with the   execution and recordation of this Instrument and insuring Lender’s interest in the Mortgaged   Property (“Schedule of Title Exceptions”). Borrower covenants that Borrower will warrant and   defend generally the title to the Mortgaged Property against all claims and demands, subject to   any easements and restrictions listed in the Schedule of Title Exceptions.                                 UNIFORM COVENANTS                                              Alabama                                                            Page 1    Multifamily Mortgage, Assignment of Rents and Security Agreement     

 

                               (Revised 5-5-2017)   Covenants. In consideration of the mutual promises set forth in this Instrument, Borrower and  Lender covenant and agree as follows:   1.    Definitions. The following terms, when used in this Instrument (including when used in        the above recitals), will have the following meanings and any capitalized term not        specifically defined in this Instrument will have the meaning ascribed to that term in the        Loan Agreement:         "Attorneys' Fees and Costs" means (a) fees and out-of-pocket costs of Lender's and        Loan Servicer' s attorneys, as applicable, including costs of Lender's and Loan Servicer' s        in-house counsel, support staff costs, costs of preparing for litigation, computerized        research, telephone and facsimile transmission expenses, mileage, deposition costs,        postage, duplicating, process service, videotaping and similar costs and expenses;        (b) costs and fees of expert witnesses, including appraisers; (c) investigatory fees; and (d)        the costs for any opinion required by Lender pursuant to the terms of the Loan        Documents.         "Borrower" means all Persons identified as "Borrower" in the first paragraph of this        Instrument, together with their successors and assigns.         "Business Day" means any day other than a Saturday, a Sunday or any other day on        which Lender or the national banking associations are not open for business.         "Event of Default" means the occurrence of any event described in Section 8.         "Fixtures" means all property owned by Borrower which is attached to the Land or the        Improvements so as to constitute a fixture under applicable law, including: machinery,        equipment, engines, boilers, incinerators and installed building materials; systems and        equipment for the purpose of supplying or distributing heating, cooling, electricity, gas,        water, air or light; antennas, cable, wiring and conduits used in connection with radio,        television, security, fire prevention or fire detection or otherwise used to carry electronic        signals; telephone systems and equipment; elevators and related machinery and        equipment; fire detection, prevention and extinguishing systems and apparatus; security        and access control systems and apparatus; plumbing systems; water heaters, ranges,        stoves, microwave ovens, refrigerators, dishwashers, garbage disposers, washers, dryers        and other appliances; light fixtures, awnings, storm windows and storm doors; pictures,        screens, blinds, shades, curtains and curtain rods; mirrors; cabinets, paneling, rugs and        floor and wall coverings; fences, trees and plants; swimming pools; and exercise        equipment.         "Governmental Authority" means any board, commission, department, agency or body        of any municipal, county, state or federal governmental unit, or any subdivision of any of    Alabama  Multifamily Mortgage, Assignment of Rents and Security Agreement   Page2  

 

      them, that has or acquires jurisdiction over the Mortgaged Property, or the use, operation        or improvement of the Mortgaged Property, or over Borrower.         "Ground Lease" means the lease described in the Loan Agreement pursuant to which        Borrower leases the Land, as such lease may from time to time be amended, modified,         supplemented, renewed and extended.         "Improvements" means the buildings, structures, improvements now constructed or at        any time in the future constructed or placed upon the Land, including any future        alterations, replacements and additions.         "Indebtedness" means the principal of, interest at the fixed or variable rate set forth in        the Note on, and all other amounts due at any time under, the Note, this Instrument or any        other Loan Document, including prepayment premiums, late charges, default interest, and        advances as provided in Section 7 to protect the security of this Instrument.         "Land" means the land described in Exhibit A.         "Leasehold Estate" means Borrower's interest in the Land and any other real property        leased by Borrower pursuant to the Ground Lease, if applicable, including all of the        following:               (a)   All rights of Borrower to renew or extend the term of the Ground Lease.               (b)   All amounts deposited by Borrower with Ground Lessor under the Ground                    Lease.               (c)   Borrower's right or privilege to terminate, cancel, surrender, modify or                    amend the Ground Lease.               (d)   All other options, privileges and rights granted and demised to Borrower                    under the Ground Lease and all appurtenances with respect to the Ground                    Lease.         "Leases" means all present and future leases, subleases, licenses, concessions or grants or        other possessory interests now or hereafter in force, whether oral or written, covering or        affecting the Mortgaged Property, or any portion of the Mortgaged Property (including        proprietary leases or occupancy agreements if Borrower is a cooperative housing        corporation), and all modifications, extensions or renewals.         "Lender" means the entity identified as "Lender" in the first paragraph of this        Instrument, or any subsequent holder of the Note.         "Loan Agreement" means the Multifamily Loan and Security Agreement executed by        Borrower in favor of Lender and dated as of the date of this Instrument, as such        agreement may be amended from time to time.   Alabama  Multifamily Mortgage, Assignment of Rents and Security Agreement   Page 3  

 

      "Loan Documents" means the Note, this Instrument, the Loan Agreement, all guaranties,        all indemnity agreements, all collateral agreements, UCC filings, O&M Programs, the        MMP and any other documents now or in the future executed by Borrower, any guarantor        or any other Person in connection with the loan evidenced by the Note, as such        documents may be amended from time to time.         "Loan Servicer" means the entity that from time to time is designated by Lender or its        designee to collect payments and deposits and receive Notices under the Note, this        Instrument and any other Loan Document, and otherwise to service the loan evidenced by        the Note for the benefit of Lender. Unless Borrower receives Notice to the contrary, the        Loan Servicer is the entity identified as "Lender" in the first paragraph of this Instrument.         "Mortgaged Property" means all of Borrower's present and future right, title and        interest in and to all of the following:               (a)   The Land, or, if Borrower's interest in the Land is pursuant to a Ground                    Lease, the Ground Lease and the Leasehold Estate.               (b)   The Improvements.               (c)   The Fixtures.               (d)   The Personalty.               (e)   All current and future rights, including air rights, development rights,                    zoning rights and other similar rights or interests, easements, tenements,                    rights of way, strips and gores of land, streets, alleys, roads, sewer rights,                    waters, watercourses and appurtenances related to or benefiting the Land                    or the Improvements, or both, and all rights-of-way, streets, alleys and                    roads which may have been or may in the future be vacated.               (f)   All proceeds paid or to be paid by any insurer of the Land, the                    Improvements, the Fixtures, the Personalty or any other part of the                    Mortgaged Property, whether or not Borrower obtained the insurance                    pursuant to Lender's requirement.               (g)   All awards, payments and other compensation made or to be made by any                    municipal, state or federal authority with respect to the Land, the                    Improvements, the Fixtures, the Personalty or any other part of the                    Mortgaged Property, including any awards or settlements resulting from                    condemnation proceedings or the total or partial taking of the Land, the                    Improvements, the Fixtures, the Personalty or any other part of the                    Mortgaged Property under the power of eminent domain or otherwise and                    including any conveyance in lieu thereof.    Alabama  Multifamily Mortgage, Assignment of Rents and Security Agreement   Page4  

 

            (h)   All contracts, options and other agreements for the sale of the Land, or the                    Leasehold Estate, as applicable, the Improvements; the Fixtures, the                    Personalty or any other part of the Mortgaged Property entered into by                    Borrower now or in the future, including cash or securities deposited to                    secure performance by parties of their obligations.               (i)   All proceeds from the conversion, voluntary or involuntary, of any of the                    items described in subsections (a) through (h) inclusive into cash or                    liquidated claims, and the right to collect such proceeds.               (i)   All Rents and Leases.               (k)   All earnings, royalties, accounts receivable, issues and profits from the                    Land, the Improvements or any other part of the Mortgaged Property, and                    all undisbursed proceeds of the loan secured by this Instrument.               (1)   All Imposition Reserve Deposits.               (m)   All refunds or rebates of Impositions by Governmental Authority or                    insurance company (other than refunds applicable to periods before the                    real property tax year in which this Instrument is dated).               (n)   All tenant security deposits which have not been forfeited by any tenant                    under any Lease and any bond or other security in lieu of such deposits.               (o)   All names under or by which any of the above Mortgaged Property may                    be operated or known, and all trademarks, trade names, and goodwill                    relating to any of the Mortgaged Property.               (p)   If required by the terms of Section 4.05 of the Loan Agreement, all rights                    under the Letter of Credit and the Proceeds, as such Proceeds may                    increase or decrease from time to time.               (q)   If the Note provides for interest to accrue at a floating or variable rate and                    there is a Cap Agreement, the Cap Collateral.         "Note" means the Multifamily Note or Notes (including any Amended and Restated        Note(s), Consolidated, Amended and Restated Note(s), or Extended and Restated        Note( s)) executed by Borrower in favor of Lender and dated as of the date of this        Instrument, including all schedules, riders, allonges and addenda, as such Multifamily        Note(s) may be amended, modified and/or restated from time to time.         "Notice" or "Notices" means all notices, demands and other communication required        under the Loan Documents, provided in accordance with the requirements of        Section 11.03 of the Loan Agreement.    Alabama  Multifamily Mortgage, Assignment of Rents and Security Agreement   Page5  

 

      "Person" means any natural person, sole proprietorship, corporation, general partnership,        limited partnership, limited liability company, limited liability partnership, limited        liability limited partnership, joint venture, association, joint stock company, bank, trust,        estate, unincorporated organization, any federal, state, county or municipal government        (or  any agency or political subdivision thereof), endowment fund or any other form of        entity.         "Personalty" means all of the following:         (a)   Accounts (including deposit accounts) of Borrower related to the Mortgaged              Property.         (b)   Equipment and inventory owned by Borrower, which are used now or in the              future in connection with the ownership, management or operation of the Land or              Improvements or are located on the Land or Improvements, including furniture,              furnishings, machinery, building materials, goods, supplies, tools, books, records              (whether in written or electronic form) and computer equipment (hardware and              software).         (c)   Other tangible personal property owned by Borrower which is used now or in the              future in connection with the ownership, management or operation of the Land or              Improvements or is located on the Land or in the Improvements, including ranges,              stoves, microwave ovens, refrigerators, dishwashers, garbage disposers, washers,              dryers and other appliances (other  than Fixtures).         (d)   Any operating agreements relating to the Land or the Improvements.         (e)   Any surveys, plans and specifications and contracts for architectural, engineering              and construction services relating to the Land or the Improvements.         (f)   All other intangible property, general intangibles and rights relating to the              operation of, or used in connection with, the Land or the Improvements, including              all governmental permits relating to any activities on the Land and including              subsidy or similar payments received from any sources, including a Governmental              Authority.         (g)   Any rights of Borrower in or under letters of credit.         "Property Jurisdiction" means the jurisdiction in which the Land is located.         "Rents" means all rents (whether from residential or non-residential space), revenues and        other income of the Land or the Improvements, parking fees, laundry and vending        machine income and fees and charges for food, health care and other services provided at        the Mortgaged Property, whether now due, past due or to become due, and deposits        forfeited by tenants, and, if Borrower is a cooperative housing corporation or association,        maintenance fees, charges or assessments payable by shareholders or residents under   Alabama  Multifamily Mortgage, Assignment of Rents and Security Agreement   Page6  

 

      proprietary leases or occupancy agreements, whether now due, past due, or to become        due.         "Taxes" means all taxes, assessments, vault rentals and other charges, if any, whether        general, special or otherwise, including all assessments for schools, public betterments        and general or local improvements, which are levied, assessed or imposed by any public        authority or quasi-public authority, and which, if not paid, will become a Lien on the        Land or the Improvements.   2.    Uniform Commercial Code Security Agreement.         (a)   This Instrument is also a security agreement under the Uniform Commercial Code              for any of the Mortgaged Property which, under applicable law, may be subjected              to a security interest under the Uniform Commercial Code, for the purpose of              securing Borrower's obligations under this Instrument and to further secure              Borrower's obligations under the Note, this Instrument and other Loan              Documents, whether such Mortgaged Property is owned now or acquired in the              future, and all products and cash and non-cash proceeds thereof (collectively,              "UCC  Collateral"), and by this Instrument, Borrower grants to Lender a security              interest in the UCC Collateral. To the extent necessary under applicable law,              Borrower hereby authorizes Lender to prepare and file financing statements,              continuation statements and financing statement amendments in such form as              Lender may require to perfect or continue the perfection of this security interest.         (b)   Unless Borrower gives Notice to Lender within 30 days after the occurrence of              any of the following, and executes and delivers to Lender modifications or              supplements of this Instrument (and any financing statement which may be filed              in connection with this Instrument) as Lender may require, Borrower will not              (i) change its name, identity, structure or jurisdiction of organization; (ii) change              the location of its place of business (or  chief executive office if more than one              place of business); or (iii) add to or change any location at which any of the              Mortgaged Property is stored, held or located.         (c)   If an Event of Default has occurred and is continuing, Lender will have the              remedies of a secured party under the Uniform Commercial Code, in addition to              all remedies provided by this Instrument or existing under applicable law. In              exercising any remedies, Lender may exercise its remedies against the UCC              Collateral separately or together, and in any order, without in any way affecting              the availability of Lender's other remedies.         (d)   This Instrument also constitutes a financing statement with respect to any part of              the Mortgaged Property that is or may become a Fixture, if permitted by              applicable law.    Alabama  Multifamily Mortgage, Assignment of Rents and Security Agreement   Page7  

 

3.    Assignment of Rents; Appointment of Receiver; Lender in Possession.         (a)   As part of the consideration for the Indebtedness, Borrower absolutely and              unconditionally assigns and transfers to Lender all Rents.               (i)   It is the intention of Borrower to establish a present, absolute and                    irrevocable transfer and assignment to Lender of all Rents and to authorize                    and empower Lender to collect and receive all Rents without the necessity                    of further action on the part of Borrower.               (ii)  Promptly upon request by Lender, Borrower agrees to execute and deliver                    such further assignments as Lender may from time to time require.                    Borrower and Lender intend this assignment of Rents to be immediately                    effective and to constitute an absolute present assignment and not an                    assignment for additional security only.               (iii) For purposes of giving effect to this absolute assignment of Rents, and for                    no other purpose, Rents will not be deemed to be a part of the Mortgaged                    Property. However, if this present, absolute and unconditional assignment                    of Rents is not enforceable by its terms under the laws of the Property                    Jurisdiction, then the Rents will be included as a part of the Mortgaged                    Property and it is the intention of Borrower that in this circumstance this                    Instrument create and perfect a Lien on Rents in favor of Lender, which                    Lien will be effective as of the date of this Instrument.         (b)         (i)   Until the occurrence of an Event of Default, Lender hereby grants                    to Borrower a revocable license to collect and receive all Rents, to hold all                    Rents in trust for the benefit of Lender and to apply all Rents to pay the                    installments of interest and principal then due and payable under the Note                    and the other amounts then due and payable under the other Loan                    Documents, including Imposition Reserve Deposits, and to pay the current                    costs and expenses of managing, operating and maintaining the Mortgaged                    Property, including utilities, Taxes and insurance premiums (to the extent                    not included in Imposition Reserve Deposits), tenant improvements and                    other capital expenditures.               (ii)  So long as no Event of Default has occurred and is continuing, the Rents                    remaining after application pursuant to the preceding sentence may be                    retained by Borrower free and clear of, and released from, Lender's rights                    with respect to Rents under this Instrument.               (iii) After the occurrence of an Event of Default, and during the continuance of                    such Event of Default, Borrower authorizes Lender to collect, sue for and                    compromise Rents and directs each tenant of the Mortgaged Property to                    pay all Rents to, or as directed by, Lender. From and after the occurrence                    of an Event of Default, and during the continuance of such Event of   Alabama  Multifamily Mortgage, Assignment of Rents and Security Agreement   Page8  

 

                  Default, and without the necessity of Lender entering upon and taking and                    maintaining control of the Mortgaged Property directly, or by a receiver,                    Borrower's license to collect Rents will automatically terminate and                    Lender will without Notice be entitled to all Rents as they become due and                    payable, including Rents then due and unpaid. Borrower will pay to                    Lender upon demand all Rents to which Lender is entitled.               (iv)  At any time on or after the date of Lender's demand for Rents, Lender                    may give, and Borrower hereby irrevocably authorizes Lender to give,                    notice to all tenants of the Mortgaged Property instructing them to pay all                    Rents to Lender. No tenant will be obligated to inquire further as to the                    occurrence or continuance of an Event of Default. No tenant will be                    obligated to pay to Borrower any amounts which are actually paid to                    Lender in response to such a notice. Any such notice by Lender will be                    delivered to each tenant personally, by mail or by delivering such demand                    to each rental unit. Borrower will not interfere with and will cooperate                    with Lender's collection of such Rents.         (c)   If an Event of Default has occurred and is continuing, then Lender will have each              of the following rights and may take any of the following actions:               (i)   Lender may, regardless of the adequacy of Lender's security or the                    solvency of Borrower and even in the absence of waste, enter upon and                    take and maintain full control of the Mortgaged Property in order to                    perform all acts that Lender in its discretion determines to be necessary or                    desirable for the operation and maintenance of the Mortgaged Property,                    including the execution, cancellation or modification of Leases, the                    collection of all Rents, the making of Repairs to the Mortgaged Property                    and the execution or termination of contracts providing for the                    management, operation or maintenance of the Mortgaged Property, for the                    purposes of enforcing the assignment of Rents pursuant to Section 3(a),                    protecting the Mortgaged Property or the security of this Instrument, or for                    such other purposes as Lender in its discretion may deem necessary or                    desirable.               (ii)  Alternatively, if an Event of Default has occurred and is continuing,                    regardless of the adequacy of Lender's security, without regard to                    Borrower's solvency and without the necessity of giving prior notice (oral                    or written) to Borrower, Lender may apply to any court having jurisdiction                    for the appointment of a receiver for the Mortgaged Property to take any                    or all of the actions set forth in the preceding sentence. If Lender elects to                    seek the appointment of a receiver for the Mortgaged Property at any time                    after an Event of Default has occurred and is continuing, Borrower, by its                    execution of this Instrument, expressly consents to the appointment of                    such receiver, including the appointment of a receiver ex parte if permitted                    by applicable law.   Alabama  Multifamily Mortgage, Assignment of Rents and Security Agreement   Page 9  

 

            (iii) If Borrower is a housing cooperative corporation or association, Borrower                    hereby agrees that if a receiver is appointed, the order appointing the                    receiver may contain a provision requiring the receiver to pay the                    installments of interest and principal then due and payable under the Note                    and the other amounts then due and payable under the other Loan                    Documents, including Imposition Reserve Deposits, it being                    acknowledged and agreed that the Indebtedness is an obligation of                    Borrower and must be paid out of maintenance charges payable by                    Borrower's tenant shareholders under their proprietary leases or                    occupancy agreements.               (iv)  Lender or the receiver, as the case may be, will be entitled to receive a                    reasonable fee for managing the Mortgaged Property.               (v)   Immediately upon appointment of a receiver or immediately upon                    Lender's entering upon and taking possession and control of the                    Mortgaged Property, Borrower will surrender possession of the Mortgaged                    Property to Lender or the receiver, as the case may be, and will deliver to                    Lender or the receiver, as the case may be, all documents, records                    (including records on electronic or magnetic media), accounts, surveys,                    plans, and specifications relating to the Mortgaged Property and all                    security deposits and prepaid Rents.               (vi)  If Lender takes possession and control of the Mortgaged Property, then                    Lender may exclude Borrower and its representatives from the Mortgaged                    Property.               Borrower acknowledges and agrees that the exercise by Lender of any of the              rights conferred under this Section 3 will not be construed to make Lender a              mortgagee-in-possession of the Mortgaged Property so long as Lender has not              itself entered into actual possession of the Land and Improvements.         (d)   If Lender enters the Mortgaged Property, Lender will be liable to account only to              Borrower and only for those Rents actually received. Except to the extent of              Lender's gross negligence or willful misconduct, Lender will not be liable to              Borrower, anyone claiming under or through Borrower or anyone having an              interest in the Mortgaged Property, by reason of any act or omission of Lender              under Section 3(c), and Borrower hereby releases and discharges Lender from any              such liability to the fullest extent permitted by law.         (e)   If the Rents are not sufficient to meet the costs of taking control of and managing              the Mortgaged Property and collecting the Rents, any funds expended by Lender              for such purposes will become an additional part of the Indebtedness as provided              in Section 7.    Alabama  Multifamily Mortgage, Assignment of Rents and Security Agreement   Page 10  

 

      (f)   Any entering upon and taking of control of the Mortgaged Property by Lender or              the receiver, as the case may be, and any application of Rents as provided in this              Instrument will not cure or waive any Event of Default or invalidate any other              right or remedy of Lender under applicable law or provided for in this Instrument.   4.    Assignment of Leases; Leases Affecting the Mortgaged Property.         (a)   As part of the consideration for the Indebtedness, Borrower absolutely and              unconditionally assigns and transfers to Lender all of Borrower's right, title and              interest in, to and under the Leases, including Borrower's right, power and              authority to modify the terms of any such Lease, or extend or terminate any such              Lease.               (i)   It is the intention of Borrower to establish a present, absolute and                    irrevocable transfer and assignment to Lender of all of Borrower's right,                    title and interest in, to and under the Leases. Borrower and Lender intend                    this assignment of the Leases to be immediately effective and to constitute                    an absolute present assignment and not an assignment for additional                    security only.               (ii)  For purposes of giving effect to this absolute assignment of the Leases,                    and for no other purpose, the Leases will not be deemed to be a part of the                    Mortgaged Property.               (iii) However, if this present, absolute and unconditional assignment of the                    Leases is not enforceable by its terms under the laws of the Property                    Jurisdiction, then the Leases will be included as a part of the Mortgaged                    Property and it is the intention of Borrower that in this circumstance this                    Instrument create and perfect a Lien on the Leases in favor of Lender,                    which Lien will be effective as of the date of this Instrument.         (b)   Until Lender gives Notice to Borrower of Lender's exercise of its rights under this              Section 4, Borrower will have all rights, power and authority granted to Borrower              under any Lease (except as otherwise limited by this Section or any other              provision of this Instrument), including the right, power and authority to modify              the terms of any Lease or extend or terminate any Lease. Upon the occurrence of              an Event of Default, and during the continuance of such Event of Default, the              permission given to Borrower pursuant to the preceding sentence to exercise all              rights, power and authority under Leases will automatically terminate. Borrower              will comply with and observe Borrower's obligations under all Leases, including              Borrower's obligations pertaining to the maintenance and disposition of tenant              security deposits.         (c)         (i)   Borrower acknowledges and agrees that the exercise by Lender,                    either directly or by a receiver, of any of the rights conferred under this                    Section 4 will not be construed to make Lender a mortgagee-in-possession   Alabama  Multifamily Mortgage, Assignment of Rents and Security Agreement   Page 11  

 

                  of the Mortgaged Property so long as Lender has not itself entered into                    actual possession of the Land and the Improvements.               (ii)  The acceptance by Lender of the assignment of the Leases pursuant to                    Section 4(a) will not at any time or in any event obligate Lender to take                    any action under this Instrument or to expend any money or to incur any                    expenses.               (iii) Except to the extent of Lender's gross negligence or willful misconduct,                    Lender will not be liable in any way for any injury or damage to person or                    property sustained by any Person or Persons in or about the Mortgaged                    Property.               (iv)  Prior to Lender's actual entry into and taking possession of the Mortgaged                    Property, Lender will not be obligated for any of the following:                    (A)    Lender will not be obligated to perform any of the terms,                          covenants and conditions contained in any Lease (or  otherwise                          have any obligation with respect to any Lease).                    (B)    Lender will not be obligated to appear in or defend any action or                          proceeding relating to the Lease or the Mortgaged Property.                    (C)    Lender will not be responsible for the operation, control, care,                          management or repair of the Mortgaged Property or any portion of                          the Mortgaged Property. The execution of this Instrument by                          Borrower will constitute conclusive evidence that all responsibility                          for the operation, control, care, management and repair of the                          Mortgaged Property is and will be that of Borrower, prior to such                          actual entry and taking of possession.         (d)   Upon delivery of Notice by Lender to Borrower of Lender's exercise of Lender's              rights under this Section 4 at any time after the occurrence of an Event of Default,              and during the continuance of such Event of Default, and without the necessity of              Lender entering upon and taking and maintaining control of the Mortgaged              Property directly, by a receiver, or by any other manner or proceeding permitted              by the laws of the Property Jurisdiction, Lender immediately will have all rights,              powers and authority granted to Borrower under any Lease, including the right,              power and authority to modify the terms of any such Lease, or extend or terminate              any such Lease.         (e)   Borrower will, promptly upon Lender's request, deliver to Lender an executed              copy of each residential Lease then in effect.         (f)   If Borrower is a cooperative housing corporation or association, notwithstanding              anything to the contrary contained in this Instrument, so long as Borrower   Alabama  Multifamily Mortgage, Assignment of Rents and Security Agreement   Page 12  

 

            remains a cooperative housing corporation or association and is not in breach of              any covenant of this Instrument, Lender consents to the following:               (i)   Borrower may execute leases of apartments for a term in excess of 2 years                    to a tenant shareholder of Borrower, so long as such leases, including                    proprietary leases, are and will remain subordinate to the Lien of this                    Instrument.               (ii)  Borrower may surrender or terminate such leases of apartments where the                    surrendered or terminated lease is immediately replaced or where                    Borrower makes its best efforts to secure such immediate replacement by                    a newly-executed lease of the same apartment to a tenant shareholder of                    Borrower. However, no consent is given by Lender to any execution,                    surrender, termination or assignment of a lease under terms that would                    waive or reduce the obligation of the resulting tenant shareholder under                    such lease to pay cooperative assessments in full when due or the                    obligation of the former tenant shareholder to pay any unpaid portion of                    such assessments.   5.    Prepayment Premium. Borrower will be required to pay a prepayment premium in        connection with certain prepayments of the Indebtedness, including a payment made after        Lender's exercise of any right of acceleration of the Indebtedness, as provided in the        Note.   6.    Application of Payments. If at any time Lender receives, from Borrower or otherwise,        any amount applicable to the Indebtedness which is less than all amounts due and payable        at such time, then Lender may apply that payment to amounts then due and payable in        any manner and in any order determined by Lender, in Lender's discretion. Neither        Lender's acceptance of an amount that is less than all amounts then due and payable nor        Lender's application of such payment in the manner authorized will constitute or be        deemed to constitute either a waiver of the unpaid amounts or an accord and satisfaction.        Notwithstanding the application of any such amount to the Indebtedness, Borrower's        obligations under this Instrument, the Note and all other Loan Documents will remain        unchanged.   7.    Protection of Lender's Security; Instrument Secures Future Advances.         (a)   If Borrower fails to perform any of its obligations under this Instrument or any              other Loan Document, or if any action or proceeding is commenced which              purports to affect the Mortgaged Property, Lender's security or Lender's rights              under this Instrument, including eminent domain, insolvency, code enforcement,              civil or criminal forfeiture, enforcement of Hazardous Materials Laws, fraudulent              conveyance or reorganizations or proceedings involving a bankrupt or decedent,              then Lender at Lender's option may make such appearances, file such documents,              disburse such sums and take such actions as Lender reasonably deems necessary    Alabama  Multifamily Mortgage, Assignment of Rents and Security Agreement   Page 13  

 

            to perform such obligations of Borrower and to protect Lender's interest,              including all of the following:               (i)   Lender may pay Attorneys' Fees and Costs.               (ii)  Lender may pay fees and out-of-pocket expenses of accountants,                    inspectors and consultants.               (iii) Lender may enter upon the Mortgaged Property to make Repairs or secure                    the Mortgaged Property.               (iv)  Lender may procure the Insurance required by the Loan Agreement.               (v)   Lender may pay any amounts which Borrower has failed to pay under the                    Loan Agreement.               (vi)  Lender may perform any of Borrower's obligations under the Loan                    Agreement.               (vii) Lender may make advances to pay, satisfy or discharge any obligation of                    Borrower for the payment of money that is secured by a Prior Lien.         (b)   Any amounts disbursed by Lender under this Section 7, or under any other              provision of this Instrument that treats such disbursement as being made under              this Section 7, will be secured by this Instrument, will be added to, and become              part of, the principal component of the Indebtedness, will be immediately due and              payable and will bear interest from the date of disbursement until paid at the              Default Rate.         (c)   Nothing in this Section 7 will require Lender to incur any expense or take any              action.   8.    Events of Default. An Event of Default under the Loan Agreement will constitute an        Event of Default under this Instrument.   9.    Remedies Cumulative. Each right and remedy provided in this Instrument is distinct        from all other rights or remedies under this Instrument, the Loan Agreement or any other        Loan Document or afforded by applicable law or equity, and each will be cumulative and        may be exercised concurrently, independently or successively, in any order. Lender's        exercise of any particular right or remedy will not in any way prevent Lender from        exercising any other right or remedy available to Lender. Lender may exercise any such        remedies from time to time and as often as Lender chooses.   10.   Waiver of Statute of Limitations, Offsets, and Counterclaims. Borrower waives the        right to assert any statute of limitations as a bar to the enforcement of the Lien of this        Instrument or to any action brought to enforce any Loan Document. Borrower hereby   Alabama  Multifamily Mortgage, Assignment of Rents and Security Agreement  Page 14  

 

      waives the right to assert a counterclaim, other than a compulsory counterclaim, in any        action or proceeding brought against it by Lender or otherwise to offset any obligations to        make the payments required by the Loan Documents. No failure by Lender to perform        any of its obligations under this Instrument will be a valid defense to, or result in any        offset against, any payments that Borrower is obligated to make under any of the Loan        Documents.   11.   Waiver of Marshalling.         (a)   Notwithstanding the existence of any other security interests in the Mortgaged              Property held by Lender or by any other party, Lender will have the right to              determine the order in which any or all of the Mortgaged Property will be              subjected to the remedies provided in this Instrument, the Note, the Loan              Agreement or any other Loan Document or applicable law. Lender will have the              right to determine the order in which any or all portions of the Indebtedness are              satisfied from the proceeds realized upon the exercise of such remedies.         (b)   Borrower and any party who now or in the future acquires a security interest in              the Mortgaged Property and who has actual or constructive notice of this              Instrument waives any and all right to require the marshalling of assets or to              require that any of the Mortgaged Property be sold in the inverse order of              alienation or that any of the Mortgaged Property be sold in parcels or as an              entirety in connection with the exercise of any of the remedies permitted by              applicable law or provided in this Instrument.   12.   Further Assurances; Lender's Expenses.         (a)   Borrower will deliver, at its sole cost and expense, all further acts, deeds,              conveyances, assignments, estoppel certificates, financing statements or              amendments, transfers and assurances as Lender may require from time to time in              order to better assure, grant and convey to Lender the rights intended to be              granted, now or in the future, to Lender under this Instrument and the Loan              Documents or in connection with Lender's consent rights under Article VII of the              Loan Agreement.         (b)   Borrower acknowledges and agrees that, in connection with each request by              Borrower under this Instrument or any Loan Document, Borrower will pay all              reasonable Attorneys' Fees and Costs and expenses incurred by Lender, including              any fees payable in accordance with any request for further assurances or an              estoppel certificate pursuant to the Loan Agreement, regardless of whether the              matter is approved, denied or withdrawn. Any amounts payable by Borrower              under this Instrument or under any other Loan Document will be deemed a part of              the Indebtedness, will be secured by this Instrument and will bear interest at the              Default Rate if not fully paid within 10 days of written demand for payment.   13.   Governing Law; Consent to Jurisdiction and Venue. This Instrument, and any Loan   Alabama  Multifamily Mortgage, Assignment of Rents and Security Agreement   Page 15  

 

      Document which does not itself expressly identify the law that is to apply to it, will be        governed by the laws of the Property Jurisdiction. Borrower agrees that any controversy        arising under or in relation to the Note, this Instrument or any other Loan Document may        be litigated in the Property Jurisdiction. The state and federal courts and authorities with        jurisdiction in the Property Jurisdiction will have jurisdiction over all controversies that        may arise under or in relation to the Note, any security for the Indebtedness or any other        Loan Document. Borrower irrevocably consents to service, jurisdiction and venue of such        courts for any such litigation and waives any other venue to which it might be entitled by        virtue of domicile, habitual residence or otherwise. However, nothing in this Section 13 is        intended to limit Lender's right to bring any suit, action or proceeding relating to matters        under this Instrument in any court of any other jurisdiction.   14.   Notice. All Notices, demands and other communications under or concerning this        Instrument will be governed by the terms set forth in the Loan Agreement.   15.   Successors and Assigns Bound. This Instrument will bind the respective successors and        assigns of Borrower and Lender, and the rights granted by this Instrument will inure to        Lender's successors and assigns.   16.   Joint and Several Liability. If more than one Person signs this Instrument as Borrower,        the obligations of such Persons will be joint and several.   17.   Relationship of Parties; No Third Party Beneficiary.         (a)   The relationship between Lender and Borrower will be solely that of creditor and              debtor, respectively, and nothing contained in this Instrument will create any              other relationship between Lender and Borrower. Nothing contained in this              Instrument will constitute Lender as a joint venturer, partner or agent of              Borrower, or render Lender liable for any debts, obligations, acts, omissions,              representations or contracts of Borrower.         (b)   No creditor of any party to this Instrument and no other Person will be a third              party beneficiary of this Instrument or any other Loan Document. Without              limiting the generality of the preceding sentence, (i) any arrangement ("Servicing              Arrangement") between Lender and any Loan Servicer for loss sharing or              interim advancement of funds will constitute a contractual obligation of such              Loan Servicer that is independent of the obligation of Borrower for the payment              of the Indebtedness, (ii) Borrower will not be a third party beneficiary of any              Servicing Arrangement, and (iii) no payment by the Loan Servicer under any              Servicing Arrangement will reduce the amount of the Indebtedness.   18.   Severability; Amendments.         (a)   The invalidity or unenforceability of any provision of this Instrument will not              affect the validity or enforceability of any other provision, and all other provisions              will remain in full force and effect. This Instrument contains the entire agreement   Alabama  Multifamily Mortgage, Assignment of Rents and Security Agreement  Page 16  

 

            among the parties as to the rights granted and the obligations assumed in this              Instrument.         (b)   This Instrument may not be amended or modified except by a writing signed by              the party against whom enforcement is sought; provided, however, that in the              event of a Transfer prohibited by or requiring Lender's approval under Article VII              of the Loan Agreement, some or all of the modifications to the Loan Documents              (if any) may be modified or rendered void by Lender at Lender's option by Notice              to Borrower and the transferee(s).   19.   Construction.         (a)   The captions and headings of the Sections of this Instrument are for convenience              only and will be disregarded in construing this Instrument. Any reference in this              Instrument to a "Section" will, unless otherwise explicitly provided, be construed              as referring to a Section of this Instrument.         (b)   Any reference in this Instrument to a statute or regulation will be construed as              referring to that statute or regulation as amended from time to time.         (c)   Use of the singular in this Instrument includes the plural and use of the plural              includes the singular.         (d)   As used in this Instrument, the term "including" means "including, but not limited              to" and the term "includes" means "includes without limitation."         (e)   The use of one gender includes the other gender, as the context may require.         (f)   Unless the context requires otherwise any definition of or reference to any              agreement, instrument or other document in this Instrument will be construed as              referring to such agreement, instrument or other document as from time to time              amended, supplemented or otherwise modified (subject to any restrictions on such              amendments, supplements or modifications set forth in this Instrument).         (g)   Any reference in this Instrument to any person will be construed to include such              person's successors and assigns.   20.   Subrogation. If, and to the extent that, the proceeds of the loan evidenced by the Note, or        subsequent advances under Section 7, are used to pay, satisfy or discharge a Prior Lien,        such loan proceeds or advances will be deemed to have been advanced by Lender at        Borrower's request, and Lender will automatically, and without further action on its part,        be subrogated to the rights, including Lien priority, of the owner or holder of the        obligation secured by the Prior Lien, whether or not the Prior Lien is released.         END OF UNIFORM COVENANTS; STATE-SPECIFIC PROVISIONS FOLLOW    Alabama  Multifamily Mortgage, Assignment of Rents and Security Agreement   Page 17  

 

21-30. Reserved.   31.   Acceleration; Remedies.         (a)   At any time during the existence of an Event of Default, Lender, at Lender's              option, may declare the Indebtedness to be immediately due and payable without              further demand, and may invoke the power of sale and any one or more other              remedies permitted by applicable law or provided in this Instrument, the Loan              Agreement or in any other Loan Document. Borrower acknowledges that the              power of sale granted in this Instrument may be exercised by Lender without prior              judicial hearing. Lender will be entitled to collect all costs and expenses incurred              in pursuing such remedies, including Attorneys' Fees and Costs and costs of              documentary evidence, abstracts and title reports.         (b)   If Lender invokes the power of sale, Lender will mail a copy of a notice of sale to              Borrower in the manner provided in Section 11.03 of the Loan Agreement.              Lender will give notice by publication once a week for three consecutive weeks of              the time, place and terms of such sale, together with a description of the              Mortgaged Property to be sold, in a newspaper published in the county or counties              in which the Land to be sold is located, and thereupon will sell the Mortgaged              Property (or  such part or parts thereof as the Lender may from time to time elect              to sell) to the highest bidder at public auction at the front door of the County              Courthouse of the county in which the Land to be sold, or a substantial and              material part thereof is located. The sale will be held between the hours of 11 :00              a.m. and 4:00 p.m. on the day designated for the exercise of the power of sale              hereunder. Lender may sell the Mortgaged Property in one or more parcels and in              such order as Lender may determine. Lender may postpone sale of all or any              parcel of the Mortgaged Property by public announcement at the time and place              of any previously scheduled sale and by re-publication of notice announcing the              new sale date. Lender or Lender's designee may purchase the Mortgaged Property              at any sale.         (c)   Lender will deliver to the purchaser Lender's deed conveying the Mortgaged              Property so sold without any covenant or warranty, express or implied. The              recitals in Lender's deed will be prima facie evidence of the truth of the              statements made in those recitals. Borrower covenants and agrees that the              proceeds of any sale will be applied in the following order or as otherwise              prescribed by law: (i) to all costs and expenses of the sale, including Attorneys'              Fees and Costs; (ii) to the Indebtedness in such order as Lender, in Lender's              discretion, directs; and (iii) the excess, if any, to the person or persons legally              entitled to it, after deducting therefrom the costs of ascertaining their identity.    Alabama  Multifamily Mortgage, Assignment of Rents and Security Agreement  Page 18  

 

32.   Defeasance. Upon payment of the Indebtedness, this Instrument will become null and        void upon the filing by the Lender of a written instrument of termination. Borrower will        pay Lender's reasonable costs incurred in releasing this Instrument.   33.   Waiver of Exemptions. Borrower waives all rights of exemptions as to personal        property. If Borrower is an individual, Borrower represents and warrants to Lender that        the Mortgaged Property is not the homestead of Borrower or Borrower's spouse.   34.   WAIVER OF TRIAL BY JURY.         (a)   BORROWER AND LENDER EACH COVENANTS AND AGREES NOT              TO ELECT A TRIAL BY JURY WITH RESPECT TO ANY ISSUE              ARISING OUT OF THIS INSTRUMENT OR THE RELATIONSHIP              BETWEEN THE PARTIES AS BORROWER AND LENDER THAT IS              TRIABLE OF RIGHT BY A JURY.         (b)   BORROWER AND LENDER EACH WAIVES ANY RIGHT TO TRIAL              BY JURY WITH RESPECT TO SUCH ISSUE TO THE EXTENT THAT              ANY SUCH RIGHT EXISTS NOW OR IN THE FUTURE. THIS WAIVER              OF RIGHT TO TRIAL BY JURY IS    SEPARATELY GIVEN BY EACH              PARTY, KNOWINGLY AND VOLUNTARILY WITH THE BENEFIT OF              COMPETENT LEGAL COUNSEL.   35.   Attached Riders. The following Riders are attached to this Instrument:         Rider to Multifamily Security Instrument - Trade Names   36.   Attached Exhibits. The following Exhibits, if marked with an "X" in the space provided,        are attached to this Instrument:         IXI   Exhibit A   Description of the Land (required)        !XI   Exhibit B   Modifications to Instrument        ,_1   Exhibit C   Ground Lease Description (if applicable)                REMAINDER OF PAGE INTENTIONALLY LEFT BLANK    Alabama  Multifamily Mortgage, Assignment of Rents and Security Agreement   Page 19  

 

IN WITNESS WHEREOF, Borrower has signed and delivered this Instrument under seal or has  caused this Instrument to be signed and delivered under seal by its duly authorized  representative. Borrower intends that this Instrument will be deemed to be signed and delivered  as a sealed instrument.                                   BORROWER:                                   SIR TAPESTRY PARK, LLC                                  a Delaware limited liability company                                   By:    Steadfast Income Advisor, LLC                                         a Delaware limited liability company                                         Manager                                         By:                                   ACKNOWLEDGMENT   A notary public or other officer completing this certificate verifies only the identity of the  individual who signed the document to which this certificate is attached, and not the truthfulness,  accuracy, or validity of that document.   STA TE OF CALIFORNIA      )                            ) ss  COUNTY OF     Orange     )         On   September           _12_, 2019, before me  Laurie Sanders  Notary Public, personally appeared Kevin J. Keating, who proved to me on the basis of  satisfactory evidence to be the person whose name is subscribed to the within instrument and  acknowledged to me  that he executed the same in his authorized capacity, and that by his  signature on the instrument the person, or the entity upon behalf of which the person acted,  executed the instrument.         I certify under PENALTY OF  PERJURY under the  laws of the State of California that  the foregoing paragraph is true and correct.         WITNESS my hand and official seal.              f Oe  ~ ft e ~:IE~A:E:s e  e f                                                        - fi    •  Notiry Public - California                                                        i ;     ;     Orange County ~                                                          'c   • ~ Commission II 2257364 -                                                                My Comm. Expires Oct 4, 2022    Alabama                                                               Page S-1  Multifamily Mortgage, Assignment of Rents and Security Agreement  

 

              RIDER TO MULTIFAMILY SECURITY INSTRUMENT                                   TRADE NAMES                                  (Revised 3-1-2014)   The following changes are made to the Instrument which precedes this Rider:   A.    Subsection (o)  of the definition of Mortgaged Property in Section 1 is restated as follows:               (o)   All names under or by which any of the above Mortgaged Property may                    be operated or known, and all trademarks, trade names, and goodwill                    relating to any of the Mortgaged Property; provided however, that the                    name§. "SIR", "STAR" or "Steadfast" and/or associated trademark rights                    are not assigned to Lender, subject to Section 6.30 of the Loan Agreement.    Rider to Multifamily Security Instrument                           Page 1  Trade Names  

 

                                                EXHIBIT A                                        DESCRIPTION OF THE LAND    THE  U\NO  REFERRED   TO HEREIN  BELOW   IS SITUATED  liNI THE COUNTY OF JEFFERSON,   STATE OF   ALABAMA.  AND IS OESCR!SEO AS   FOUOWS:     ALL. THAT TRACT OR PARCEL    OF LAND LYING OR BEflNG IN THE NORTHWEST 1/4    OF THE   NORTHWSST 114 OF SECTION 34,   TOWNSHIP 17 sourn, RANGE 2 WEST AND      THE NORTHEAST 114   OF   THE NORTHEAST '114  OF S!:CTION 33, TOWNSHtP 17 SOUTH, RANG!: 2 W1$ST: IN THE CITY LtMJTS OP   BIRMINGHAM .AND   MOUNTAIN BROOK, ALABAMA,      AND BEING MORE PARTICULARLY DESCRIBED AS   FOLLOWS;    TO FfND THE POINT OF BEG.INNING,  COMMENCE AT A 518" REB.M FOUND AT THE INTERSECTION OF   THE SOUTHWESTERLY RIGHT OF WAY OF BEECM CIRCLE (HAVING A 50' RIGHT OF WAY WfOTH)         WITH   THE SOUTHEASTERLY RJGHT OF WAY OF MONTCLAIR ROAD (HAVING AN 80' RIGHT OF WAY W1DTI:Q;   THENCE FWNNINO ALONG SAID RIGHT OF WAY OP MONTCLAIR ROAl> S 52~46'28" W .A DISTANCE OF   510.00' ro A 5i8" RESAR: FOUND, B.EfNG THE .POINT OF BlfGfNNlNG.,   FROM me POINT OF SEGINNiNG AS THUS      t.:STABUSHEC ANO LEAVING   SAJO R(GHT OF WAY TH:ENCI:   S 37"13'32" EA DISTANCE O.F 405 ..00'  TO A POINT; THENCE N 52°46'28" EA DISTANCE OF 210.()4' TO A   POINT; THENCE S 88°58'14" EA DISTANCE   OF 57.49• TO A POINT; THENCE S ()1"(}8'18" EA DJSTAWCE   OF 200.52' 10 A 1" CRIMP TOP FOUND;  THENCE S 66°53~1" WA DISTANCE OF 301 ,67' TO A POINT;   THENCE S 40".22'26" WA DISTANCE OF 44"1.12' TO A 518" REBAR FOUND; THENCE N 19"24'35'' WA   DISTANCE OF 191.18' TO A 112" RESAR FOUND WJTH   CAP; THENCE S 68"44'08" WA DISTANCE OF   597.54' TO A POINT; THENCE N 00"'21 '45" EA DISTANCE OF m.44' TO A 518" RfBAR FOIJNO; THENCE S   87°28'2.7" WA DISTANCE: O.F 293.91' TO .A .POfNT .LOCATED ON THE SOOTHEA.SrERLY RIGHT OFWA Y   OF SAID MONTCLAIR ROAD; THENCE RUNNING       ALONG SAID .RIGHT OF WAY N S2~4i'2$" EA DISTANCE   OF 1423,64' TO A 1/Z" REBA.Fl FOUND,. WHICH IS .THE POINT OF ,BEGJNNING.                  .     ALL THAT TRACT OR PARCEL OF LAND LYING OR BEJNG IN THE NORTHWEST' 114       OF THE   NORTHWEST 1/4 OF SECTION :U,   TOWNSHIP 11 SOUTH,    RANGE 2 WEST.AND   THE NORTHEAST 1/4   OF   THE NORTHEAST 114   OF SECTION 33,  TOWNSHfP 17 SOUTH, RANGE 2 WEST; AND BEING LOT 2,   ACCORDING   TO  THE SURVEY OF TAPESTRY .PARK AS RECORDED IN MAP BOOK 235,      PAGE   28, IN THE   PROBATE OFFICE OF JEFFERSON COUN.rY, ALABAMA, BtRMWGHAM DMSJON,           IN THE CITY LtMtTS OF   SJRMINGHA.M,  ALABAMA,   AND BEING MORE PARTICUl.ARt Y DESCRIBED A.S FOLLOWS:    BEGINNING ATA 518" REBAR FOUND Ar THE INTERSECTION OF THE SOUTHEASTERLY RIGHT OF WAY   OF MONTCLAIR ROAD (HAVING AN 80' RJGHT OF WAY WIDTH)      WITH THE SOUTHWESTERL 'f RIGHT OF   WAY OF BEECH CIRCLE (HA VfNG A 5!1' RIGHT OF WAY WIDTH);   THENCE RUNNING ALONG SJUO RIGHT   OF WAY OF BEECH CIRCLE S 3'1"12'23" EA DISTAM:E OF 476. 66' TO A POINT;: THENCE CONTINUING   ALONG SAID RIGHT OF WAYwml A CURVE TURNING         TO THE RIGHT WITH AN ARC LENGTH OF 90.47',   W1TH A RADIUS  OF 143..  i'$j wrm A CHORD SEARWG OF S 19"07"45 .. E, WITH A CHORD U!NGTH OF  .   &'t• .96'  TO A POINT; THENCE CONTINUING ALONG SAJD RJGHT OF WAYS Of"fl'JZ" EA DISTANCE OF   45.86' ro A Ml'' REBAR FOUND; irff:.NCE t.EA\hNG $AID RIGHT OF WAY ftl 88"58'14" WA DISTANCE OF   2$4, tr TO A POINT; THENCE N B!J".6?J"1•r WA DISTANCE OF 57.49' TO A POINT; rHENCE S 52·4$'2$" WA   DISTANCE OP 210.04' TO A POINT; THENCE N 37'13'32" WA l>fSTANCE OP 405J10' TO A 112" RE$AR   FOUND vwm A CAP, LOCATED ON      THE SAID SOVTHEASTERL y RIG.HT OF WA y OF MONTCLAIR ROAD:   THENCE RUNNING ALONG SAJO RfGHT OF WAY N 51°4l;llS" EA DISTANCE OF 51MO' TO A 518" REBAR   FOUND AT THE INTERSECTION OF .SAID MONTCLAIR ROAD RIGHT OF WAY AND SOUTH~.STER.L Y   RIGHT OF WAY OF BEECH ClRClF!, WHICH IS   THE POINT OF BEGINNING,    Alabama  Multifamily Mortgage, Assignment of Rents and Security Agreement                                      PageA-1  

 

                                  EXHIBITB                          MODIFICATIONS TO INSTRUMENT   The following modifications are made to the text of the Instrument that precedes this Exhibit:                                       NONE    Alabama  Multifamily Mortgage, Assignment of Rents and Security Agreement        Page B-1a103assignmentofmanageme

                                                                         EXHIBIT 10.3   Freddie Mac Loan Number: 499673646  Property Name: Tapestry Park at Montclair                 ASSIGNMENT OF MANAGEMENT AGREEMENT AND                    SUBORDINATION OF MANAGEMENT FEES                                 (Revised 7-12-2016)    THIS ASSIGNMENT OF MANAGEMENT AGREEMENT AND SUBORDINATION OF  MANAGEMENT FEES ("Assignment") is made effective as of the 26th day of September,  2019, by and among SIR TAPES TRY PARK, LLC, a Delaware limited liability company  ("Borrower"), BERKELEY POINT CAPITAL LLC, d/b/a NEWMARK KNIGHT FRANK,  a Delaware limited liability company ("Lender"), and STEADFAST MANAGEMENT  COMPANY, INC., a California corporation ("Property Manager").                                    RECITALS:   A.    Borrower has requested that Lender make a loan to Borrower ("Loan"). The Loan will be        evidenced by a Multifamily Note from Borrower to Lender effective as of the date of this        Assignment ("Note"). The Note is secured by, among other things, a Multifamily Loan        and Security Agreement ("Loan Agreement") and a Multifamily Mortgage, Deed of        Trust, or Deed to Secure Debt ("Security Instrument"), dated as of the date of this        Assignment, which grants Lender a lien on the property encumbered by the Security        Instrument ("Mortgaged Property"). The Note, the Loan Agreement, the Security        Instrument, this Assignment and any of the other documents evidencing the Loan are        collectively referred to as the "Loan Documents". Other capitalized terms used but not        defined in this Assignment will have the meanings given to those terms in the Loan        Agreement.   B.    Pursuant to a Management Agreement between Borrower and Property Manager        ("Management Agreement") (a true and correct copy of which is attached as Exhibit B),        Borrower employed Property Manager exclusively to lease, operate and manage the        Mortgaged Property, and Property Manager is entitled to certain management fees        ("Management Fees") pursuant to the Management Agreement.   C.    Lender requires as a condition to the making of the Loan that Borrower assign the        Management Agreement and that Property Manager subordinate its interest in the        Management Fees in lien and payment to the Loan as set forth below.    For good and valuable consideration, the parties agree as follows:   1.    Assignment of Management Agreement. As additional collateral security for the Loan,   Assignment of Management Agreement and  Subordination of Management Fees  

 

      Borrower conditionally transfers, sets over, and assigns to Lender all of Borrower's right,        title and interest in and to the Management Agreement and all extensions and renewals.        This transfer and assignment will automatically become a present, unconditional        assignment, at Lender's option, upon a default by Borrower under the Note, the Loan        Agreement, the Security Instrument or any of the other Loan Documents (each,  an        "Event of Default"), and the failure of Borrower to cure such Event of Default within        any applicable grace period.   2.    Subordination of Management Fees. The Management Fees and all rights and        privileges of Property Manager to the Management Fees are and will at all times continue        to be subject and unconditionally subordinate in all respects in lien and payment to the        lien and payment of the Loan Agreement, the Security Instrument, the Note, and the other        Loan Documents, and to any renewals, extensions, modifications, assignments,        replacements, or consolidations of the Loan Documents and the rights, privileges, and        powers of Lender under the Note, the Loan Agreement, the Security Instrument, or any of        the other Loan Documents.   3.    Estoppel. Property Manager and Borrower represent and warrant that all of the following        are true as of the date of this Assignment:         (a)   The Management Agreement is in full force and effect and has not been modified,              amended or assigned other than pursuant to this Assignment.         (b)   Neither Property .Manager nor Borrower is in default under any of the terms,              covenants or provisions of the Management Agreement and Property Manager              knows of no event which, but for the pas:mge of time or the giving of notice or              both, would constitute an event of default under the Management Agreement.         (c)   Neither Property Manager nor Borrower has commenced any action or given or              received any notice for the purpose of terminating the Management Agreement.         (d)   The Management  Fees and all other sums due and payable to the Property              Manager under the Management Agreement have been paid in full.   4.    Agreement by Borrower and Property Manager. Borrower and Property Manager        agree that if there is an Event of Default by Borrower ( continuing beyond any applicable        grace period) under the Note, the Loan Agreement, the Security Instrument or any of the        other Loan Documents during the term of this Assignment or upon the occurrence of any        event which would entitle Lender to terminate the Management Agreement in accordance        with the terms of the Loan Documents, Lender may terminate the Management        Agreement without payment of any cancellation fee or penalty and require Property        Manager to transfer its responsibility for the management of the Mortgaged Property to a        management company selected by Lender in Lender's sole discretion, effective as of the        date set forth in Lender's notice to Property Manager. Following any such termination,        Property Manager agrees to apply all rents, security deposits, issues, proceeds and profits        of the Mortgaged Property in accordance with Lender's written directions to Property        Manager.   Assignment of Management Agreement and  Subordination of Management Fees                                      Page2  

 

5.    Lender's Right to Replace Property Manager. If Lender, in Lender's reasonable        discretion, at any time during the term of this Assignment, determines that the Mortgaged        Property is not being managed in accordance with generally accepted management        practices for properties similar to the Mortgaged Property, Lender will deliver written        notice to Borrower and Property Manager, which notice will specify with particularity the        grounds for Lender's determination. If Lender reasonably determines that the conditions        specified in Lender's notice are not remedied to Lender's reasonable satisfaction by.        Borrower or Property Manager within 30 days from receipt of such notice or that        Borrower or Property Manager have failed to diligently undertake correcting such        conditions within such 30-day period, Lender may direct Borrower to terminate Property        Manager as manager of the Mortgaged Property and terminate the Management        Agreement without payment of any cancellation .fee or penalty and to replace Property        Manager with a management company acceptable to Lender in Lender's sole discretion        pursuant to a management agreement acceptable to Lender in Lender's sole discretion.   6.    Receipt of Management Fees. Property Manager will not be obligated to return or        refund to Lender any Management Fees or other fee, commission or other amount        received by Property Manager prior to the occurrence of the Event of Default, and to        which Property Manager was entitled under the Management Agreement. If the Property        Manager receives any Management Fees after it has received notice of an Event of Default,        Property Manager agrees that such Management Fees will be received and held in trust for        Lender, to be applied by Lender to amounts due under the Loan Documents.   7.    Consent and Agreement by Property Manager. Property Manager acknowledges and        consents to this Assignment and agrees that Property Manager will act in conformity with        the provisions of this Assignment and Lender's rights under this Assignment or otherwise        related to the Management Agreement. If the responsibility for the management of the        Mortgaged Property is transferred from Property Manager in accordance with the        provisions of this Assignment, then Property Manager will fully cooperate in trarisferring        its responsibility to a new management company and complete such transfer no later than        30 days from the date the Management Agreement is terminated. Further; Property        Manager agrees as follows:         (a)   It will not contest or impede the exercise by Lender of any right Lender has under              or in connection with this Assignment.         (b)   It will give at least 30 days prior written notice to Lender of its intention to              terminate the Management Agreement or otherwise discontinue its management              of the Mortgaged Property, in the manner provided for in this Assignment.         ( c)  It will not amend any of the provisions or terms of the Management Agreement              without the prior consent of Lender.   8.    Termination. When the Loan is paid in full and the Security Instrument is released or        assigned of record, this Assignment and all of Lender's right, title and interest hereunder        with respect to the Management Agreement will terminate.    Assignment of Management Agreement and  Subordination of Management Fees                                      Page3  

 

 9.    Notices.          (a)   All notices under or concerning this Assignment ("Notice") will be in writing.               Each Notice will be deemed given on the earliest to occur of: (i) the date when              the Notice is received by the addressee, (ii) the first Business Day after the Notice               is delivered to a recognized overnight courier service, with arrangements made for               payment of charges for next Business Day delivery, or (iii) the third Business Day               after the Notice is deposited in the United States mail with postage prepaid,              certified mail, return receipt requested. Addresses for Notice are as follows:               If to Lender:         Berkeley Point Capital LLC, d/b/a Newmark Knight                                    Frank                                    225 Franklin Street, Suite #1800 ·                                    Boston, Massachusetts 02110                                    Attention: Director Loan Servicing              If to Borrower:       SIR Tapestry Park, LLC                                    c/o Steadfast Companies                                    18100 Von Karman A venue, Suite 500                                    Irvine, California 92612                                    Attention: Ana Marie del Rio, General Counsel              If to Property Manager: Steadfast Management Company, Inc.                                    c/o Steadfast Companies                                    18100 Von Karman A venue, Suite 500                                    Irvine, California 92612                                    Attention: Ana Marie del Rio, General Counsel         (b)   Any party to this Assignment may change the address to which Notices intended              for it are to be directed by means of Notice given to the other parties in              accordance with this Section 9. Each party agrees that it will not refuse or reject              delivery of any Notice given in accordance with this Section 9, that it will              acknowledge, in writing, the receipt of any Notice upon request by the other party              and that any Notice rejected or refused by it will be deemed for purposes of this               Section 9 to have been received by the rejecting party on the date so refused or              rejected, as conclusively established by the records of the U.S. Postal Service or              the courier service.   10.   Governing Law; Consent to Jurisdiction and Venue.          (a)  This Assignment will be construed in accordance with and governed by the laws              of the Property Jurisdiction.          (b)  Borrower and Property Manager agree that any controversy arising under or in              relation to this Assignment may be litigated in the Property Jurisdiction. The state              and federal courts and authorities with jurisdiction in the Property Jurisdiction              will have jurisdiction over all controversies that may arise under or in relation to              this Assignment. Borrower and Property Manager irrevocably consent to service,   Assignment of Management Agreement and  Subordination of Management Fees                                       Page4  

 

            jurisdiction and venue of such courts for any such litigation and waive any other              venue to which it might be entitled by virtue of domicile, habitual residence or              otherwise. However, nothing in this Section 10 is intended to limit Lender's right              to bring any suit, action or proceeding relating to matters under this Assignment              in any court of any other jurisdiction.   11.   Captions, Cross References and Exhibits. The captions assigned to provisions of this        Assignment are for convenience only and will be disregarded in construing this        Assignment. Any reference in this Assignment to an "Exhibit" or a "Section," unless        otherwise explicitly provided, will be construed as referring, respectively, to an Exhibit        attached to this Assignment or to a section of this Assignment. All Exhibits attached to or        referred to in this Assignment are incorporated by reference into this Assignment.   12.   Number and Gender. Use of the singular in this Assignment includes the plural, use of        the plural includes the singular, and use of one gender includes all other genders, as the        context may require.   13.   No Partnership. This Assignment is not intended to, and will not, create a partnership or        joint venture among the parties, and no party to this Assignment will have the power or        authority to bind any other party except as explicitly provided in this Assignment.   14.   Severability. The invalidity or unenforceability of any provision of this Assignment will        not affect the validity of any other provision, and all other provisions will remain in full        force and effect.   15.   Entire Assignment. This Assignment contains the entire agreement among the parties as        to the rights granted and the obligations assumed in this Assignment.   16.   No Waiver; No Remedy Exclusive. Any forbearance by a party to this Assignment in        exercising any right or remedy given under this Assignment or existing at law or in        equity will not constitute a waiver of or preclude the exercise of that or any other right or        remedy. Unless otherwise explicitly provided, no remedy under this Assignment is        intended to be exclusive of any other available remedy, but each remedy will be        cumulative and will be in addition to other remedies given under this Assignment or        existing at law or in equity.   17.   Third Party Beneficiaries. Neither any creditor of any party to this Assignment, nor any        other person, is intended to be a third party beneficiary of this Assignment.   18.   Further Assurances and Corrective Instruments. To the extent permitted by law, the        parties will, from time to time, execute, acknowledge and deliver, or cause to be        executed, acknowledged and delivered, such supplements to this Assignment and such        further instruments as may reasonably be required for carrying out the intention of or        facilitating the performance of this Assignment.   19.   Counterparts. This Assignment may be executed in multiple counterparts, each of which   Assignment of Management Agreement and  Subordination of Management Fees                                      Page 5  

 

      will constitute an original document and all of which together will constitute one        agreement.   20.   Indemnity. By executing this Assignment Borrower agrees to indemnify and hold        harmless Lender and its successors and assigns from and against any and all losses,        claims, damages, liabilities and expenses including Attorneys' Fees and Costs, which        may be imposed or incurred in connection with this Assignment.   21.   Costs and Expenses. Wherever pursuant to this Assignment it is provided that Borrower        will pay any costs and expenses, such costs and expenses will include Lender's        Attorneys' Fees and Costs.   22.   Determinations by Lender. In any instance where the consent or approval of Lender        may be given or is required, or where any determination, judgment or decision is to be        rendered by Lender under this Assignment, the granting, withholding or denial of such        consent or approval and the rendering of such determination, judgment or decision will        be made or exercised by Lender ( or its designated representative) at its sole and exclusive        option and in its sole and absolute discretion and will be final and conclusive, except as        may be otherwise expressly and specifically provided in this Assignment.   23.   Successors and Assigns. This Assignment will be binding upon and inure to the benefit        of Borrower, Lender and Property Manager and their respective successors and assigns        forever.   24.   Secondary Market. Lender may sell, transfer and deliver the Note and assign the Loan        Agreement, the Security Instrument, this Assignment and the other Loan Documents to        one or more investors in the secondary mortgage market ("Investors"). In connection        with such sale, Lender may retain or assign responsibility for servicing the Loan,        including the Note, the Loan Agreement, the Security Instrument, this Assignment and        the other Loan Documents, or may delegate some or all of such responsibility and/or        obligations to a servicer including any subservicer or master servicer, on behalf of the        Investors. All references to Lender in this Assignment will refer to and include any such        servicer to the extent applicable.   25.   Attached Exhibits. The following Exhibits, if marked with an "X" in the space provided,        are attached to this Assignment:         IXI   Exhibit A   Modifications to Assignment        !XI   Exhibit B   Copy of Management Agreement    Assignment of Management Agreement and  Subordination of Management Fees                                      Page 6  

 

IN WITNESS WHEREOF the undersigned have executed this Assignment as of the date and  year first written above.                               BORROWER:                                SIR TAPESTRY PARK, LLC                               a Delaware limited liability company                                By:   Steadfast Income Advisor, LLC                                     a Delaware limited liability company                                     Manager                                      By:    Assignment of Management Agreement and                                Page S-1  Subordination of Management Fees  

 

                             LENDER:                                BERKELEY POINT CAPITAL LLC,                               d/b/a NEWMARK KNIGHT FRANK,                               a Delaware limited liability company                                By:    Assignment of Management Agreement and                               Page S-2  Subordination of Management Fees  

 

                                        PROPERTY MANAGER:                                           STEADFAST MANAGEMENT COMPANY, INC.                                          a California corporation                                            By:                                          Name:                                          Title:      Vice President    Assignment of Management Agreement and                                                 Page S-3  Subordination of Management Fees  

 

                                   EXHIBIT A                           MODIFICATIONS TO ASSIGNMENT    The following modifications are made to the text of the Assignment that precedes this Exhibit:    1.    Section 3(a) is deleted in its entirety and replaced with the following:         (a)   The Management Agreement is in full force and effect and has not been modified,               or amended or assigned other than pursuant to this Assignment. There are no               assignments of the Management Agreement that remain in effect other than               pursuant to this Assignment.   2.    Section 6 is deleted in its entirety and replaced with the following:         6.    Receipt of Management Fees. Manager will not be obligated to return or refund               to Lender any Management Fees or other fee, commission or other amount               received by Property Manager prior to the occurrence of the Event of Default, and               to which Property Manager was entitled under the Management Agreement. If the               Property Manager receives any Management Fees after it has received notice of an               Event of Default, Property Manager agrees that such Management Fees will be               received and held in trust for Lender, to be applied by Lender to amounts due under               the Loan Documents; provided, however, that nothing herein shall prevent               Property Manager from terminating the Management Agreement in the event               Property Manager is not paid all fees due to it under the Management               Agreement.    Assignment of Management Agreement and  Subordination of Management Fees                                       Page A-1  

 

                                       EXHIBITB                                 MANAGEMENT AGREEMENT    Assignment of Management Agreement and  Subordination of Management Fees                                              Page B-1  

 

                PROPERTY MANAGEMENT AGREEMENT         THIS PROPERTY   MANAGEMENT AGREEMENT         (this "Agreement") is made and  entered into as of August 13, 2013 (the "Effective Date"), by and between SIR TAPESTRY  PARK,   LLC,  a Delaware  limited liability company ("Owner"), and STEADFAST  MANAGEMENT COMPANY, INC., a California corporation ("Manager").                                     ARTICLE 1                                  DEFINITIONS         Section 1.1 Definitions. The following terms shall have the following meanings when  used in this Agreement:         "Agreement" has the meaning given in the introductory paragraph.         "Annual Business Plan" has the meaning given in Section 3.11 (a).         "Capital Budget" has the meaning given in Section 3 .11 ( a).         "Depository" means such bank or federally-insured or other financial institution as  Owner shall designate in writing.         "Effective Date" has the meaning given in the introductory paragraph.         "Fiscal Year" means the calendar year beginning January l and ending December 31 of  each calendar year, or such other fiscal year as determined by Owner and of which Manager is  notified in writing; provided that the first Fiscal Year of this Agreement shall be the period  beginning on the Effective Date and ending on December 31 of the calendar year in which the  Effective Date occurs.         "Governmental Requirements" has the meaning given in Section 3.14.         "Gross Collections" means all amounts actually collected as rents or other charges for  use and occupancy of apartment units and from users of garage spaces (if any), leases of other  non-dwelling facilities in the Property and concessionaires (if any) in respect of the Property,  including furniture rental, parking fees, forfeited security deposits, application fees, late charges,  income from coin-operated machines, proceeds from rental interruption insurance, and other  miscellaneous income collected at the Prope.rty; excluding, however, all other receipts, including  but not limited to, income derived from interest on investments or otherwise, proceeds of claims  on account of insurance policies (other than rental interruptions insurance), abatement of taxes,  franchise fees, and awards arising out of eminent domain proceedings, discounts and dividends  on insurance policies.         "Hazardous Materials" means any material defined as a hazardous substance under the  Comprehensive Environmental Response, Compensation and Liability Act of 1980, the Resource  Conservation and Recovery Act, or any state or local statute regulating the storage, release,  transportation or other disposition of hazardous material, as any of those laws may have been  amended to the date hereof, and the administrative regulations promulgated thereunder prior to  

 

 the date hereof, and, whether or not defined as hazardous substances under the foregoing   Governmental Requirements, petrolewn products (other  than petroleum products used in   accordance with Governmental Requirements by Owner or its tenants in the usual and ordinary   course of their activities), PCBs and radon gas.          "Maior Capital Improvements" has the meaning given in Section 3.6.          "Management Fee" has the meaning given in Section 4.1.          "Manager" has the meaning given in the introductory paragraph.          "Operating Budget" has the meaning given in Section 3.1 l(a).          "Owner" has the meaning given in the introductory paragraph.          "Owner's Representative" has the meaning given in Section 2.2.          "Pass-Through Amounts" means fees and/or reimbursements for services provided to   the Prope1iy but not covered by the Management Fee, as described in Exhibit A attached hereto   and made a part hereof.          "Property" means the multifamily apaiiment project listed and described on Exhibit B   attached hereto and made a part hereof.          "Security Deposit Account" has the meaning given in Section 5.1.          "State" means the state in which the Property is located.                                      ARTICLE2            APPOINTMENT OF AGENCY AND RENT AL RESPONSIBILITY          Section 2.1 Appointment.  Owner hereby appoints Manager and Manager hereby   accepts appointment as the sole and exclusive leasing agent and manager of the Property on the  terms and conditions set forth herein. Owner warrants and represents to Manager that Owner  owns fee simple title to the Properiy with all requisite authority to hereby appoint Manager and  to enter into this Agreement.          Section 2.2 Owner's Representative. Owner shall from time to time designate one or  more persons to serve as Owner' s representative ("Owner's Representative") in all dealings  with Manager hereunder. Whenever the approval, consent or other action of Owner is called for  hereunder, such approval, consent or action shall be binding on Owner if specified in writing and  signed by Owner's Representative. The initial Owner's Representative shall be Kyle Winning,  Chief Investment Officer. Any Owner's Representative may be changed at the discretion of  Owner, at any time, and shall be effective upon Manager's receipt of written notice identifying  the new Owner's Representative.                                           2  

 

       Section 2.3  Leasing.    Manager   shall perform  all  promotional, leasing and  management activities required to lease apartment units in the Property. Throughout the term of  this Agreement, Manager shall use its diligent efforts to lease apartment units in the Property.  Manager shall advertise the Prope1iy, prepare and secure advertising signs, space plans, circulars,  marketing brochures and other fonns of advertising. Owner hereby authorizes Manager pursuant  to the te1111s of this Agreement to advertise the Property in conjunction with institutional  advertising campaigns and allocate costs on a pro rata basis among  the Properties being  advertised (to the extent authorized by the Annual Business Plan). All inquiries for any leases or  renewals or agreements for the rental of the Property or portions thereof shall be referred to  Manager  and all negotiations connected therewith shall be conducted solely by or under the  direction of Manager. Manager is hereby authorized to execute, deliver and renew residential  tenant leases on behalf of Owner. Manager is  authorized to utilize the services of apartment  locator services and the fees of such services shall be operating expenses of the Property and, to  the extent paid by Manager, reimbursable by Owner.          Section 2.4  Manager's  Standard  of Care.  Manager shall perform its duties under  this Agreement in a manner consistent with professional property management services. In no  event shall the scope or quality of services provided by Manager for the Property hereunder be  less than those generally perfonned by professional property managers of similar properties in  the market area where the Property is located. Manager shall make available to Owner the full  benefit of the judgment, experience, and advice of the members and employees of Manager's  organization with respect to the policies to be pursued by Owner in operating the Property, and  will perfonn the services set forth herein and such other services as may be requested by Owner  in managing, operating, maintaining and servicing the Property.                                        ARTICLE 3                     SERVICES TO BE PERFORMED BY MANAGER          Section 3.1  Expense  of Owner.  All acts performed by Manager in the performance  of its obligations under this Agreement shall be performed as an independent contractor of  Owner, and all obligations or expenses incurred thereby, shall be for the account of, on behalf of,  and at the expense of Owner, except as otherwise specifically provided in this A1iicle 3, provided  Owner shall be obligated to reimburse Manager only for the following:                (a)    Costs and  Expenses.  All costs and expenses incurred by Manager on  behalf of Owner in connection with the management and operation of the Property, including but  not limited to all compensation, including the cost of benefits, payable to the employees at the  Property and identified in the Operating Budget and taxes and assessments payable in connection  therewith and reasonable training, travel and expenses associated therewith, all marketing costs,  all collection and lease enforcement costs, all maintenance and repair costs incurred in  accordance with Section 3.5 hereof, all utilities  and related services, all on-site overhead costs  and all other costs reasonably incurred by Manager in the operation and management of the  Property, excluding, however, all of Manager's general overhead costs, including without  limitation, all expenses incurred at Manager's corporate headquarters and other Manager office  sites other than the prope1iy management office located at the Property (i.e., office expenses,  long distance phone calls, postage, copying, supplies, electronic data processing and accounting                                              3  

 

 expenses), general accounting and reporting expenses for services included among Manager's   duties under the Agreement; and                (b)   Other. All sums otherwise due and payable by Owner as expenses of the  Property authorized to be incurred by Manager under the terms of this Agreement and the   Operating Budget, including compensation payable under Section 4.1 hereof to Manager for its  services hereunder.          Manager may use employees normally assigned to other work centers or part-time   employees to properly staff the Property, reduced, increased or emergency work load and the like  including the property manager, business manager, assistant managers, leasing directors, or other   administrative personnel, maintenance employees or maintenance supervisors whose wages and   related expenses shall be reimbursed on a pro rata basis for the time actually spent at the  Property. A property manager or business manager at the Property and any other persons  perfonning functions substantially similar to those of a business manager, including but not  limited to assistant managers, leasing directors, leasing agents, sales directors, sales agents,  bookkeepers, and other administrative and/or maintenance personnel perfom1 ing work at the site,   and on-site maintenance personnel,  shall not be considered executive employees of Manager.   All reimbursable payments made by Manager hereunder shall be reimbursed from funds  deposited in an account established pursuant to Section 5.2 of this Agreement. Manager shall   not be obligated to make any advance to or for the account of Owner nor shall Manager be  obligated to incur any liability or obligation for the account of Owner without assurance that the  necessary funds for the discharge thereof will be provided by Owner. In the performance of its   duties as agent and manager of the Property, Manager shall act solely as an independent   contractor of Owner. All debts and liabilities to third persons incurred by Manager in the course  of its operation and management of the Property shall be the debts and liabilities of Owner only,   and Manager shall not be liable for any such debt or liabilities, except to the extent Manager has   exceeded its authority hereunder.          Section 3.2 Covenants Concerning  Payment  of Operating Expenses. Owner   covenants to pay all sums for reasonable operating expenses in excess of gross receipts required   to operate the Property upon written notice and demand from Manager within five days after  receipt of written notice for payment thereof.          Section 3.3 Employment  of Personnel. Manager shall use its diligent efforts to   investigate, hire, pay, supervise and discharge the personnel necessary to be employed by it to   properly maintain, operate and lease the Prope1iy, including without limitation a property   manager or business man ager at the Property. Such personnel shall in every instance be deemed   agents  or employees, as the case may be, of Manager. Owner has no right of supervision or   direction of agents or employees of Manager whatsoever; however, Owner shall have the right to   require the reassignment or termination of any employee. All Owner  directives shall be   communicated to Manager's senior level management employees. Manager and all personnel of   Manager who handle or who are responsible for handling Owner's monies shall be bonded in   favor of Owner. Manager agrees to obtain and keep in effect fidelity insurance in an amount not   less than Two Hundred Fifty Thousand Dollars ($250,000). All reasonable salaries, wages and   other compensation of personnel employed  by Manager, including so-called fringe benefits,   worker's compensation, medical and health insurance and the like, shall be deemed to be                                          4  

 

reimbursabl e expenses of Manager. Manager may allow its employees who work at the Property  and provide services to the Property after normal business hours, to reside at the Property for  reduced rents (or rent fee as provided in the Operating Budget) in consideration of their benefit  to Owner and the Property, provided such reduced rents are reflected in the Annual Business  Plan.         Section 3.4  Utility and Service Contracts. Manager shall, at Owner' s expense and in  Owner' s name or in Manager's name as agent for  Owner, enter into contracts for water,  electricity, gas, fuel, oil, telephone, vermin extermination, trash removal, cable television,  security protection and other services deemed by Manager to be necessary or advisable for the  operation of the Property. Manager shall also, in Owner's name or in Manager's name as agent  for Owner and at Owner's expense, place orders for such equipment, tools, appliances, materials,  and supplies as are reasonable and necessary to properly maintain the Property. Owner agrees to  pay or reimburse Manager for all expenses and liabilities incurred by reason of this Section  provided that such amounts are in accordance with the Operating Budget.         Section 3.5  Maintenance and Repair of Property. Manager shall use diligent efforts  to maintain, at Owner's expense, the buildings, appurtenances and grounds of the Property in  good condition and repair, including interior and exterior cleaning, painting and decorating,  plumbing, carpentry and such other normal maintenance and repair work as may be necessary or  reasonably desirable taking into consideration the an1ount allocated therefor in the Annual  Business Plan. With respect to any expenditure not contemplated by the Annual Business Plan,  Manager shall not incur any individual item of repair or replacement in excess of Five Thousand  Dollars ($5,000.00) unless authorized in writing by Owner' s Representative, except, however,  that emergency repairs immediately necessary for the preservation and safety of the Property or  to avoid the suspension of any service to the Prope1ty or danger of injury to persons or damage to  property may be made by Manager without the  approval of Owner' s Representative. Owner  shall not establish standards of maintenance and repair that violate or may violate any laws,  rules, restrictions or regulations applicable to Manager or the Property or that expose Manager to  risk of liability to tenants or other persons. Manager shall not be obligated by this Section to  perform any Major Capital Improvements.         Section 3.6  Supervision of Major Capital Improvements or Repairs.  When  requested by Owner in writing  or as set forth in an Approved Business Plan, Manager or an  affiliate thereof shall, at Owner' s expense and in Owner' s name or in Manager' s name as agent  for Owner, supervise the installation and construction of all Major Capital Improvements to the  Property where such work constitutes other than nonnal maintenance and repair, for additional  compensation as set forth in a separate agreement. If Owner and Manager fail to reach an  agreement for Manager' s additional compensation as provided in thi s Section 3.6, Owner may  contract with a third party to supervise installation or construction of Major Capital  Improvements. In such events, Manager may negotiate contracts with all necessary contractors,  subcontractors, materialmen, suppliers, architects, and engineers on behalf of, and in the name  of, Owner, and may compromise and settle any dispute or claim arising therefrom on behalf of  and in the name of Owner; provided only that Manager shall act in good faith and in the best  interest of Owner at all times and Owner shall approve all contracts for such work. Manager will  furnish or will cause to be furnished all personnel necessary for proper supervision of the work  and may assign personnel located at the Property where such work is being performed to such                                          5  

 

 supervisory work (and such assignment shall not reduce or abate any other fees or compensation   owed to Manager under this Agreement). For the purposes of this Agreement, the term "Mai or   Capital Improvements" shall mean work having an estimated cost of $25,000 or more.                Owner acknowledges that Manager, or an affiliate of Manager, may bid on any   such work, and that Manager, or an affiliate of Manager, may be selected to perform part or all   of the work; provided that if Manager desires to select itself, or its affiliate to do any work, it   shall first notify Owner of the terms upon which it, or its affiliate, proposes to contract for the   work, and tenns upon which the independent contractors have offered to perform, and shall state   the reasons for preferring itself, or its affiliate, over independent contractors and Owner shall   have fifteen days to disapprove Manager, or its affiliate, and to request performance by an   independent contractor. Only Owner shall have the power to compromise or settle any dispute or   claim arising from work performed by Manager, or its affiliate; and it is expressly understood   that the selection of Manager, or its affiliate, will not affect any fee or other compensation   payable to Manager hereunder.          Section 3.7 Insurance.                (a)   Owner Requirements.  Owner agrees to maintain all forms of insurance   required by law or by any loan requirements for the Property and as otherwise deemed by Owner   to be reasonable and necessary to adequately protect Owner and Manager, including but not   limited to public liability insurance, boiler insurance, fire and extended coverage insurance, and   burglary and theft insurance. All insurance coverage shall be placed with such companies, in   such amounts and with such beneficial interest appearing therein as shall be reasonably   acceptable to Owner. Public liability insurance shall be maintained in such amounts as Owner   detennines as commercially reasonable or as otherwise required by its lenders or investors, but in   no case in an amount less than $5,000,000.                Owner agrees to timely provide evidence of required insurance to Manager, and   acknowledges that if evidence of insurance coverage is not timely furnished, Manager may, but   shall not be obligated to, obtain such coverage on Owner' s behalf. Manager shall be named an   additional insured on all Owner obtained insurance.                (b)   Manager Requirements. Manager agrees to maintain, at its own expense,   public liability insurance in an amount not less than Two Million Dollars ($2,000,000) and all   other forms of insurance required by law and as otherwise deemed by Owner and Manager to be  reasonable and necessary to adequately protect Owner and Manager, including but not limited to   workers compensation insurance, professional liability, employee practices, and fidelity  insurance. Manager agrees to timely provide evidence of required insurance to Owner and to  name Owner as an additional insured on appropriate policies.                Manager shall use its diligent efforts to investigate and make a w1itten report to  the insurance company as to all accidents, claims for damage relating to the ownership, operation  and maintenance of the Property, any damage or destruction to the Prope1iy and the estimated  cost of repair thereof, and shall prepare any and all reports for any insurance company in  connection therewith. All such reports shall be timely filed with the insurance company as  required under the terms of the insurance policy involved. With the prior written approval of                                          6  

 

 Owner, Manager is authorized to settle any and all claims against insurance companies arising   out of any policies, including the execution of proofs of loss, the adjustment of losses, signing of   receipts and collection of monies (no approval by Owner shall be required for the settlement of   claims of $5,000 or less). Manager is further authorized to contract for the maintenance and   repair of any damage or casualty in accordance with Section 3.6 above. Manager shall receive as   an additional fee for such services that fee designated in the loss adjustment as a general   contractor's fee, provided that insurance proceeds that exceed the cost ofrepairing the damage or   restoring the loss are available to pay such fees. In such event Manager shall be responsible for   all costs incurred by Manager in adjusting such loss and contracting for repairs.                (c)   Loss or Liability Claims. Owner and Manager mutually agree for the   benefit of each other to look only to the appropriate insurance coverages in effect pursuant to this   Agreement in the event any demand, claim, action, damage, loss, liability or expense occurs as a   result of injury to person or damage to property, regardless whether any such demand, claim,   action, damage, loss, liability or expense is caused or contributed to, by or results from the   negligence of Owner or Manager or their respective subsidiaries, affiliates, employees, directors,   officers, agents or independent contractors and regardless whether the injury to person or damage   to property occurs in and about the Property or elsewhere as a result of the performance of this   Agreement. Except for claims that are covered by the indemnity contained in Section 3.7(d)   below, Owner agrees that Owner's insurance shall be primary without right of subrogation   against Manager with respect to all claims, actions, damage, loss or liability in or about the   Prope1iy. Nevertheless, in the event such insurance proceeds are insufficient to satisfy (or such   insurance does not cover) the demand, claim, action, loss, liability or expense, Owner agrees, at   its expense, to indemnify and hold Manager and its subsidiaries, affiliates, officers, directors,   employees, agents or independent contractors harmless to the extent of excess liability. For   purposes of this Section 3.7(c), any deductible amount under any policy of insurance shall not be   deemed to be included as part of collectible insurance proceeds.                (d)   Indemnification. Notwithstanding anything contained in this Agreement   to the contrary, Owner shall defend, indemnify, and hold hannless Manager and its   representative subsidiaries, affiliates, officers, directors, employees, agents or independent   contractors from and against all claims, demands, or legal proceedings (including expenses and   reasonable attorney's fees incurred in connection with the defense of any such matter) (each a   "Claim") that are brought against Manager arising out of the operation or management of the   Project, except with respect to claims arising out of Manager's gross negligence or willful   misconduct. Manager shall defend, indemnify, and hold harmless Owner and its representative   subsidiaries, affiliates, officers, directors, employees, agents or independent contractors from all   Claims arising out of the gross negligence or willful misconduct of Manager. The   indemnification obligations under this Section 3. 7( d) shall survive termination of this  Agreement.                ( e)  Acts of Tenants and Third Parties. In no event shall Manager have any  liability to Owner or others for any acts of vandalism, trespass or criminal activity of any kind by  tenants or third parties on or with respect to the Property and Owner's insurance shall be primary  insurance without right of subrogation against Manager regarding claims arising out of or  resulting from acts of vandalism, trespass or criminal activity.                                          7  

 

       Section 3.8 Collection of Monies. Manager shall use its diligent efforts to collect all  rents and other charges due from tenants, users of garage spaces, carports, storage spaces (if  any), commercial lessees (if any) and concessionaires (if any) in respect of the Property and  otherwise due Owner with respect to the Property in the ordinary course of business, provided  that Manager does not guarantee the creditworthiness of any tenants, users, lessees or  concessionaires or collectability of accounts receivable from any of the foregoing. Owner  authorizes Manager to request, demand, collect, receive and receipt for all such rent and other  charges and to institute legal proceedings in the name of Owner, and at Owner's expense, for the  collection thereof, and for the dispossession of tenants and other persons from the Propeiiy or to  cancel or terminate any lease, license or concession agreement for breach or default thereunder,  and such expense may include the engaging of legal counsel for any such matter. All monies  collected by Manager shall be deposited in the separate bank account referred to in Section 5.2  herein.         Section 3.9  Manager Disbursements.                (a)   Manager's  Compensation  and  Reimbursements.    From  Gross  Coll ections, Manager shall be authorized to retain and pay (1) Manager's compensation, together  with all sales or other taxes (other than income) which Manager is obligated, presently or in the  future, to collect and pay to the State or any other governmental authority with respect to the  Property or employees at the Property, (2) the amounts reimbursable to Manager  under this  Agreement, (3) the amount of all real estate taxes and other impositions levied by appropriate  authorities with respect to the Property which, if not escrowed with any mortgagee, shall be paid  upon  specific written direction of Owner before interest begins to accrue thereon; and  ( 4) amounts otherwise due and payable as operating expenses of the Property authorized to be  incurred under the terms of this Agreement.                (b)   Debt Service. The provisions of this Section 3.9 regarding disbursements  shall include the payment of debt. service related to any mortgages of the Property, unless  otherwise instructed in writing by Owner.                (c)   Third Parties. All costs, expenses, debts and liabilities owed to third  persons that are incurred by Manager pursuant to the terms of this Agreement and in the course  of managing, leasing and operating the Property shall be the responsibility of Owner and not  Manager.  Owner agrees to provide sufficient working capital funds to Manager so that all  amounts due and owing may be promptly paid by Manager. Manager is not obligated to advance  any funds. If at any time there is not sufficient cash in the account available to Manager  pursuant to Section 5.2 with which to promptly pay the bills due and owing, Manager will  request that the necessary additional funds be deposited by Owner in an amount sufficient to  meet the shortfall. Owner will deposit the additional funds requested by Manager within five  days.                (d)   Other Provisions.  The  prov1s10ns of this Section 3.9 regarding  reimbursements to Manager shall not limit Manager' s  rights under any other provision of this  Agreement.                                           8  

 

       Section 3.10 Use and Maintenance of Premises. Manager agrees that it will not   knowingly permit the use of the Property for any purpose that might void any insurance policy   held by Owner or that might render any loss thereunder uncollectible, or that would be in   violation of Governmental Requirements, or any covenant or restriction of any lease of the   Property. Manager shall use its good faith efforts to secure substantial compliance by the tenants   with the terms and conditions of their respective leases. All costs of correcting or complying   with, and all fines payable in connection with, all orders or violations affecting the Prope1iy   placed thereon by any governmental authority or Board of Fire Underwriters or other similar   body shall be at the cost and expense of Owner.          Section 3.1 l Annual Business Plan.                (a)   Submission. No later than 60 days prior to the end of each Fiscal Year   during the term of this Agreement, or such earlier date as reasonably requested by Owner, its   lenders or investors, Manager shall prepare and submit to Owner for Owner's approval, an   Annual Business Plan for the promotion, leasing, operations, repair and maintenance of the   Property for the succeeding Fiscal Year during which this Agreement is to remain in effect (the   "Annual Business Plan"). The Annual Business Plan shall include a detailed budget of   projected income and expenses for the Property for such Fiscal Year (the "Operating Budget")   and a detailed budget of projected capital improvements for the Property for such Fiscal Year   (the "Capital Budget").                (b)   Approval. Manager  shall meet with Owner to discuss the proposed  Annual Business Plan and Owner shall approve the proposed Annual Business Plan within 20  days of its submission to Owner, or as soon thereafter as commercially practicable. To be  effective, any notice which disapproves a proposed Annual Business Plan must contain specific  objections in reasonable detail to individual line items. If Owner fails to provide an effective  notice disapproving a proposed Annual Business Plan within such 20-day period, the proposed  Annual Business Plan shall be deemed to be approved. Owner acknowledges that the Operating  Budget is intended only to be a reasonable estimate of the income and expenses of the Property  for the ensuing Fiscal Year. Manager shall not be deemed to have made any guarantee, wananty  or representation whatsoever in connection with the Operating Budget.               (c)   Revision. Manager may revise the Operating Budget from time to time,  as necessary, to reflect any unpredicted significant changes, variables or events or to include  significant additional, unanticipated items of revenue and expense. Any such revision shall be  submitted to Owner for approval, which approval shall not be unreasonably withheld, delayed or  conditioned.               (d)   Implementation.  Manager agrees to use diligence and to employ all  reasonable eff01is to ensure that the actual costs of maintaining and operating the Property shall  not exceed the Operating Budget either in total or in any one accounting category. Any expense  causing or likely to cause a variance of greater than ten percent (10%) or $25,000, whichever is  greater, in any one accounting category for the current month cumulative year-to-date total shall  be promptly explained to Owner by Manager in the next operating statement submitted by  Manager to Owner.                                           9  

 

       Section 3 .1 2 Records, Reporting. Manager shall maintain at the regular business   office of Manager or at such other address as Manager shall advise Owner in writing, separate   books and journals and orderly files, containing rental records, insurance policies, leases,   correspondence, receipts, bills and vouchers, and all other documents and papers pertaining   directly to the Property and the operation thereof. All corporate statements, receipts, invoices,   checks, leases, contracts, worksheets, financial statements, books and records, and all other   instruments and documents relating to or arising from the operation or management of the   Property shall be and remain the property of Owner and the Owner shall have the right to inspect   such records at any reasonable time upon prior notice; Manager shall have the right to request   and maintain copies of all such matters, at Manager's cost and expense, at all reasonable times   during the tenn of this Agreement, and for a reasonable time thereafter not to exceed three years.   All on-site records, including leases, rent rolls, and other related documents shall remain at the   respective Property for which such records are maintained as the property of Owner.          Section 3 .1 3 Financial Reports.                (a)   Monthly Reports. On or before the fifteenth (I 51h) day of each month   during the tern1 of this Agreement, Manager shall deliver or cause to be delivered to Owner's   Representative a statement of cash flow for the Property (on a cash and not an accrual basis) for   the preceding calendar month. All notices from any mortgagee claiming any default in any  mo1igage on the Property, and any other notice from any mortgagee not of a routine nature, shall   be promptly delivered by Manager to Owner's Representative.                (b)   Annual Reports. Within 45 days after the end of each Fiscal Year,  Manager shall deliver to Owner's Representative a statement of cash flow showing the results of  operations for the Fiscal Year or portion thereof during which the provisions of this Agreement  were in effect.                (c)   Employee Files. Manager shall execute and file punctually when due all  forn1s, reports and returns required by law relating to the employment of personnel.         Section 3.14 Compliance with Governmental Requirements. Manager shall comply  with all laws, ordinances and regulations relating to the management, leasing and occupancy of  the Property, including any regulatory or use agreements. Owner acknowledges that Manager  does not hold itself out to be an expert or consultant with respect to, or represent that, the  Property currently complies with applicable ordinances, regulations, rules, statutes, or laws of  governmental entities having jurisdiction over the Prope1iies or the requirements of the Board of  Fire Underwriters or other similar bodies (collectively, "Governmental Requirements").  Manager  shall take such action as may be reasonably necessary to comply with any  Governmental Requirements applicable to Manager, including the collection and payment of all  sales and other taxes (other than income taxes) which may be assessed or charged by the State or  any governmental entities in connection with Manager's compensation. If Manager discovers  that the Prope1iy does not comply with any Governmental Requirements, Manager shall take  such action as may be reasonably necessary to bring the Property into compliance with such  Governmental Requirements, subject to the limitation contained in Section 3.5 of this Agreement  regarding the making of alterations and repairs. Manager, however, shall not take any such  action as long as Owner is contesting or has affinned its intention to contest and promptly                                         10  

 

institute proceedings contesting any such order or requirement. If, however, failure to comply  promptly with any such order or requirement would or might expose Manager to civil or criminal  liability, Manager shall have the right, but not the obligation, to cause the same to be complied  with and Owner agrees to indemnify and hold Manager harmless for taking such actions and to  promptly reimburse Manager for expenses incurred thereby. Manager shall promptly, and in no  event later than 72 hours from the time of receipt, notify Owner' s Representative in writing of all  such orders or notices. Manager shall not be liable for any effort or judgment or for any mistake  of fact or of law, or for anything that it may do or refrain from doing, except in cases of willful  misconduct or gross negligence of Manager.                                     ARTICLE 4                       MANAGER'S COMPENSATION, TERM         Section 4.1 Fees Paid to Manager. Commencing on the date hereof, Owner shall pay  to Manager a fee (the "Management Fee"), payable monthly in arrears, in an amount equal to  Three Percent (3.0%) of Gross Collections for such  month. The Management Fee shall not be  subject to off-sets and charges unless agreed upon by the parties. Pass-Through Amounts shall  be collected monthly by Manager, as applicable.         Section 4.2 Term.  This Agreement shall commence on the Effective Date, and shall  thereafter continue for a period of one (1) year from the Effective Date, unless otherwise  terminated as provided herein. Thereafter, if neither party gives written notice to the other at  least 60 days prior to the expiration date hereof that this Agreement is to terminate, then this  Agreement shall be automatically renewed on a month-to-month basis.         Section 4.3 Termination Rights. Notwithstanding anything that may be contained  herein to the contrary, Owner may terminate this Agreement at any time by giving Manager  thirty (30) days written notice thereof upon a determination of gross negligence, willful  misconduct or  bad acts of Manager or any of its employees. If Owner or Manager shall  materially breach its obligations hereunder, and such breach remains uncured for a period of 30  days after written notification of such breach, the party not in breach hereunder may terminate  this Agreement by giving written notice to the other. Any notice given pursuant to this Article 4,  shall be sent by certified mail.         Section 4.4 Duties on Termination. Upon  any tennination of this Agreement as  contemplated in Section 4.4, Manager shall be entitled to receive all compensation and  reimbursements, if any, due to Manager through the date of te1mination. Within 30 days after  any termination, Manager shall deliver to Owner's Representative, the report required by  Section 3.13(a) for any period not covered by such a report at time of termination, and within 30  days after any such termination, Manager shall deliver to Owner' s Representative, as required by  Section 3. l 3(b),  the statement of cash fl ow for the Fiscal Year or portion thereof ending on the  date of termination. In addition, upon termination of this Agreement for any reason, Manager  will submit to Owner within 30 days after termination any reports required hereunder, all of the  cash and bank accounts of the Property, including, without limitation, the Security Deposit  Account, investments and records. Manager will, within 30 days after termination, turn over to  Owner all copies of all books and records kept for the Prope1iy. If Manager desires to retain  records of the Prope1iy, Manager must reproduce them at its own expense.                                          11  

 

                                  ARTICLE 5        PROCEDURES FOR HANDLING RECEIPTS AND OPERATING CAPITAL         Section 5.1 Security Deposits. Manager shall collect, deposit, hold, disburse and pay  security deposits as required by  applicable State law  and all other applicable laws, and in  accordance with the terms of each tenant's lease. The amount of each security deposit will be  specified in the tenant's lease. Security deposits shall be deposited into a separate non-interest­ bearing account unless otherwise required by law (the "Security Deposit  Account") at a  Depository selected by Manager and approved by Owner. The Security Deposit Account shall  be established in the name of Manager and held separate from all other of Manager's funds and  accounts, unless Owner informs Manager, in writing that it intends to hold the Security Deposit  Account.  If such account is held by Manager, only representatives of Manager will be  signatories to this account. To the extent possible, the Security Deposit Account shall be fully  insured by the Federal Deposit Insurance Corporation (FDIC). Owner agrees to indemnify and  hold harmless Manager, and Manager's representatives, officers, directors and employees for any  loss or liability with respect to any use by Owner of the tenant security deposits that is  inconsistent with the terms of tenant leases and applicable laws.         Section 5.2 Separation of Owner's Monies.  Manager shall deliver all collected  rents, charges and other amounts received in connection with the management and operation of  the Property (except for tenants' security deposits, which will be handled as specified in this  Agreement) to a Depository selected by Manager and approved by Owner.         Section 5.3 Depository Accounts.  Except to the extent that Manager has not  complied with its obligations under Sections 2.4 and 5.2, Owner and Manager agree that  Manager shall have no liability fo r loss of funds of Owner contained in the bank accounts for the  Property maintained by Owner or Manager pursuant to this Agreement due to insolvency of the  bank or financial institution in which its accounts are  kept, whether or not the amounts in such  accounts exceed the maximum amount of federal or other deposit insurance applicable with  respect to the financial institution in question.         Section 5.4 Working Capital. In addition to the funds derived from the operation of  the Prope1iy, Owner shall furnish and maintain in the  operating accounts of the Prope1iy such  other funds as may be necessary to discharge financial commitments required to efficiently  operate the Prope1iy and to meet all payrolls and satisfy, before delinquency, and to discharge all  accounts payable. Manager shall have no responsibility or obligation with respect to the  furnishing of any such funds. Nevertheless, Manager shall have the right, but not the obligation,  to advance funds  or contribute property on  behalf of Owner to satisfy obligations of Owner in  connection with this Agreement and the Property. Manager shall keep appropriate records to  document all reimbursable expenses paid by Manager, which records shall be made available for  inspection by Owner or its agents on request. Owner agrees to reimburse Manager upon demand  for money paid or property contributed in connection with the Property and this Agreement.         Section 5.5 Authorized Signatures. Any persons from time to time designated by  Manager shall be authorized signatories on all bank accounts established by Manager pursuant to  this Agreement and shall have authority to make disbursements  pursuant to the tenn s of this  Agreement from such accounts. Funds may be withdrawn from all bank accounts established by                                          12  

 

Manager, in accordance with this Article 5, only upon the signature of an individual who has  been granted that authority by Manager and funds may not be withdrawn from such accounts by  Owner unless Manager is in default hereunder.                                        ARTICLE 6                                    MISCELLANEOUS          Section 6.1  Assignment.  Upon  30  days written notification, Owner may assign its  rights and obligations to any successor in title to the Property and upon such assignment shall be  relieved of all liability accruing after the effective date of such assignment. This Agreement may  not be assigned or delegated by Manager without the prior written consent of Owner, which  Owner may  withhold in its sole discretion. Any unauthorized assignment shall be null and void  ab initio, and shall not in any event release Manager from any liabilities hereunder.          Section 6.2  Notices. All notices required or pennitted by this Agreement shall be in  w1iting and shall be sent by registered or certified mail, addressed in the case of Owner to SIR  Tapestry Park, LLC, 18100 Von Karman A venue, Suite 500, Irvine, CA 92612, Attention: Kevin  Keating; and in the case of Manager to Steadfast Management  Company,  Inc., 18 100 Von  Karman Avenue,  Suite 500, Irvine, CA 92612, Attention: Christopher Hilbert, or to such other  address as shall, from time to time, have been designated by written notice by either party given  to the other party as herein provided.          Section 6.3  Entire Agreement.  This Agreement shall constitute the entire agreement  between the parties hereto and no modification thereof shall be effective unless in writing  executed by the parties hereto.          Section 6.4  No Partnership.  Nothing contained in this Agreement shall constitute or  be construed to be or create a partnership or joint venture between Owner, its  successors or  assigns, on the one part, and Manager, its successors and assigns, on the other part.          Section 6.5  No Third Party Beneficiary. Neither this Agreement nor any part hereof  nor any service relationship shall inure to the benefit of any third party, to any trustee in  bankruptcy, to any assignee for the benefit of creditors, to any receiver by reason of insolvency,  to any other fiduciary or officer representing a bankrupt or insolvent estate of either party, or to  the creditors or claimants of such an estate. Without limiting the generality of the foregoing  sentence, it is specifically understood and agreed that such insolvency or bankruptcy of either  party hereto shall, at the option of the other party, void all rights of such insolvent or bankrupt  pruty hereunder ( or so many of such rights as the other party shall elect to void).         Section 6.6   Severability. If any one or more of the provisions of this Agreement, or  the applicability of any such provision to a  specific situation, shall be held invalid or  unenforceable, such provision should be modified to the minimum extent necessary to make it or  its application valid and enforceable, and the validity and enforceability of all other provisions of  this Agreement and all other applications of such provisions shall not be affected thereby.          Section 6.7  Captions, Plural Terms.  Unless the context clearly requires otherwise,  the singular number herein shall include the plural, the plural number shall include the singular                                             13  

 

and any gender shall include all genders. Titles and captions herein shall not affect the  construction of this Agreement.         Section 6.8  Attorneys' Fees. Should either party employ an attorney to enforce any  of the provisions of this Agreement, or to recover damages for breach of this Agreement, the  non-prevailing party in any action agrees to pay to the prevailing party all reasonable costs,  damages and  expenses, including reasonable attorneys' fees, expended or incurred by the  prevailing party in connection therewith.         Section 6.9  Signs. Manager shall have the right to place signs on the Property in  accordance with applicable Governmental Requirements stating that Manager is the manager and  leasing agent for the Property.         Section 6.10 Survival of Indemnities. The indemnification obligations of the parties  to this Agreement shall survive the termination of this Agreement to the extent of any claim or  cause of action based on an event occurring prior to the date of termination.         Section 6.11 Governing Law.  This Agreement shall be construed under and in  accordance with the laws of the State and is fully performable with respect to the Property in the  county in which the Property is located.         Section 6. 12 Competitive Properties. Manager may, individually or with others,  engage or possess an interest in any other  project or venture of every nature and description,  including but not limited to, the ownership, financing, leasing, operation, management,  brokerage and sale of real estate projects including apartment projects other than the Properiy,  whether or not such other venture or projects are competitive with the Property and Owner shall  not have any claim as to such project or venture or to the income or profits derived therefrom.         Section 6.13 Set Off.  Without prej udice to Manager's right to terminate this  Agreement in accordance  with the terms of this Agreement, Manager may at any time and  without notice to Owner, set off or transfer any sums held by Manager for or on behalf of Owner  in the accounts ( other than the Security Deposit Account) maintained pursuant to this Agreement  in or towards satisfaction of any of Owner's liabilities to Manager in respect of any sums due to  Manager under this Agreement.         Section 6.14 Notice of Default. Manager shall not be deemed in default under this  Agreement, and Owner's right to terminate Manager as a result of such default shall not accrue,  until Owner has delivered written notice of default to Manager and Manager has failed to cure  same within 30 days from the date ofreceipt of such notice.         Section 6.15 Counterparts. This Agreement may  be executed m two  or more  counterparts, each of which shall be deemed to be an original.                           [Signatures appear on following page.]                                           14  

 

            This Property Management Agreement is hereby executed by duly authorized  representatives of the parties hereto as of the Effective Date.     OWNER:                       SIR TAPES TRY PARK, LLC,                                a Delaware limited liability company                                 By:             come Advisor, LLC, its Manager                                       By:~    ___dLf_ R__                     MANAGER:                      STEADFAST MANAGEMENT COMP ANY, INC.,                                ~:~;~--                                   Williamc.oii,vic;  President                                           15  

 

                                  EXHIBIT A                       ESTIMATED PASS-THROUGH AMOUNTS   Benefits Administration                               3.0% of total employee costs  IT Infrastructure, Licenses and Support               At cost and expense  Marketing/Training/Continuing Educations              $20.00 p.u.p.y.                                          16  

 

                                   EXHIBIT B                                   THE PROPERTY   Tapestry Park is located at 801 Montclair Road, Birmingham, Alabama, m the County of  Jefferson, and described as follows:   The Property is comprised of 6 rental buildings with 223 units. Site amenities include clubhouse  with library and internet cafe, grand lawn with Bocce ball court, pool, fitness center, and  carwash. It is situated on 15.9 acres and it was built in 2013.                                           17  

 

                PROPERTY MANAGEMENT AGREEMENT         THIS  PROPERTY   MANAGEMENT     AGREEMENT    (this "Agreement") is made and  entered into as of July 28, 2014 (the "Effective Date"), by and between ARLINGTON  MONTCLAIR    II, LLC, an Alabama limited liability company ("Owner"), and STEADFAST  MANAGEMENT COMP ANY,      INC., a California corporation ("Manager").                                     ARTICLE 1                                  DEFINITIONS         Section 1.1 Defmitions. The following terms shall have the following meanings when  used in this Agreement:         "Agreement" has the meaning given in the introductory paragraph.         "Annual Business Plan" has the meaning given in Section 3.1 l(a).          "Depository" means such bank or federally-insured or other financial institution as  Owner shall designate in writing.         "Effective Date" has the meaning given in the introductory paragraph.         "Fiscal Year" means the calendar year beginning January I and ending December 31 of  each calendar year, or such other fiscal year as determined by Owner and of which Manager is  notified in writing; provided that the first Fiscal Year of this Agreement shall be the period  beginning on the Effective Date and ending on December 31 of the calendar year in which the  Effective Date occurs.         "Governmental Requirements" has the meaning given in Section 3.14.         "Gross Collections" means all amounts actually collected as rents or other charges for  use and occupancy of apartment units and from users of garage spaces (if any), leases of other  non-dwelling facilities in the Property and concessionaires (if any) in respect of the Property,  including furniture rental, parking fees, forfeited security deposits, application fees, late charges,  income from coin-operated machines, proceeds from rental interruption insurance, and other  miscellaneous income collected at the Property; excluding, however, all other receipts, including  but not limited to, income derived from interest on investments or otherwise, proceeds of claims  on account of insurance policies (other than rental interruptions insurance), abatement of taxes,  franchise fees, and awards arising out of eminent domain proceedings, discounts and dividends  on insurance policies.         "Hazardous Materials" means any material defined as a hazardous substance under the  Comprehensive Environmental Response, Compensation and Liability Act of 1980, the Resource  Conservation and Recovery Act, or any state or local statute regulating the storage, release,  transportation or other disposition of hazardous material, as any of those laws may have been  amended to the date hereof, and the administrative regulations promulgated thereunder prior to  the date hereof, and, whether or not defined as hazardous substances under the foregoing  Governmental Requirements, petroleum products (other than petroleum products used in                                         I  

 

accordance with Governmental Requirements by Owner or its tenants in the usual and ordinary  course of their activities), PCBs and radon gas.          "Management Fee" has the meaning given in Section 4.1.         "Manager" has the meaning given in the introductory paragraph.         "Operating Budget" has the meaning given in Section 3.1 l(a).         "Owner" has the meaning given in the introductory paragraph.         "Owner's Representative" has the meaning given in Section 2.2.         "Pass-Through Amounts" means fees and/or reimbursements for services provided to  the Property but not covered by the Management Fee, as described in Exhibit A attached hereto  and made a part hereof.         "Property" means the multifamily apartment project listed and described on Exhibit B  attached hereto and made a part hereof.         "Security Deposit Account" has the meaning given in Section 5 .1.         "State" means the state in which the Property is located.                                     ARTICLE2            APPOINTMENT OF AGENCY AND RENTAL RESPONSIBILITY         Section 2.1 Appointment.  Owner hereby appoints Manager and Manager hereby  accepts appointment as the sole and exclusive leasing agent and manager of the Property on the  terms and conditions set forth herein. Owner warrants and represents to Manager that Owner  owns fee simple title to the Property with all requisite authority to hereby appoint Manager and  to enter into this Agreement.         Section 2.2 Owner's Representative. Owner shall from time to time designate one or  more persons to serve as Owner's representative ("Owner's Representative") in all dealings  with Manager hereunder. Whenever the approval, consent or other action of Owner is called for  hereunder, such approval, consent or action shall be binding on Owner if specified in writing and  signed by Owner's Representative. The initial Owner's Representative shall be David G. Ellis.  Any Owner's Representative may be changed at the discretion of Owner, at any time, and shall  be effective upon Manager's receipt of written notice identifying the new Owner's  Representative.         Section 2.3 Leasing.   Manager  shall perform all promotional, leasing and  management activities required to lease apartment units in the Property. Throughout the term of  this Agreement, Manager shall use its diligent efforts to lease apartment units in the Property.  Manager shall advertise the Property, prepare and secure advertising signs, space plans, circulars,  marketing brochures and other forms of advertising. Owner hereby authorizes Manager pursuant  to the terms of this Agreement to advertise the Property in conjunction with institutional   {10426691.2)                         2  

 

advertising campaigns and allocate costs on a pro rata basis among the Properties being  advertised (to the extent authorized by the Annual Business Plan).  All inquiries for any leases or  renewals or agreements for the rental of the Property or portions thereof shall be referred to  Manager and all negotiations connected therewith shall be conducted solely by or under the  direction of Manager. Manager is hereby authorized to execute, deliver and renew residential  tenant leases on behalf of Owner.         Section 2.4 Manager's Standard of Care. Manager shall perform its duties under  this Agreement in a manner consistent with professional property management services. In no  event shall the scope or quality of services provided by Manager for the Property hereunder be  less than those generally performed by professional property managers of similar properties in  the market area where the Property is located. Manager shall make available to Owner the full  benefit of the judgment, experience, and advice of the members and employees of Manager's  organization with respect to the policies to be pursued by Owner in operating the Property, and  will perform the services set forth herein and such other services as may be requested by Owner  in managing, operating, maintaining and servicing the Property.         Section 2.5 Property. Notwithstanding anything to the contrary contained in this  Agreement, the parties acknowledge that, as of the Effective Date, portions of the Property  remain under construction and, accordingly, with respect to any building within the Property for  which a temporary certificate of occupancy has NOT yet been obtained, the only obligations or  duties of Manager under this Agreement with respect thereto shall be pre-leasing and leasing  activities.                                     ARTICLE3                   SERVICES TO   BE PERFORMED BY MANAGER         Section 3.1 Expense of Owner. All acts performed by Manager in the performance  of its obligations under this Agreement shall be performed as an independent contractor of  Owner, and all obligations or expenses incurred thereby, shall be for the account of, on behalf of,  and at the expense of Owner, except as otherwise specifically provided in this Article 3, provided  Owner shall be obligated to reimburse Manager only for the following:               (a)   Costs and Expenses. All costs and expenses incurred by Manager on  behalf of Owner in connection with the management and operation of the Property, including but  not limited to all compensation, including the cost of benefits, payable to the employees at the  Property and identified in the Operating Budget and taxes and assessments payable in connection  therewith and reasonable training, travel and expenses associated therewith, all marketing costs,  all collection and lease enforcement costs, all maintenance and repair costs incurred in  accordance with Section 3.5 hereof, all utilities and related services, all on-site overhead costs  and all other costs reasonably incurred by Manager in the operation and management of the  Property, excluding, however, all of Manager's general overhead costs, including without  limitation, all expenses incurred at Manager's corporate headquarters and other Manager office  sites other than the property management office located at the Property (i.e., office expenses,  long distance phone calls, postage, copying, supplies, electronic data processing and accounting  expenses), general accounting and reporting expenses for services included among Manager's  duties under the Agreement; and   {10426691.2)                         3  

 

            (b)   Other. All sums otherwise due and payable by Owner as expenses of the  Property authorized to be incurred by Manager under the terms of this Agreement and the  Operating Budget, including compensation payable under Section 4.1 hereof to Manager for its  services hereunder.         Manager may  use employees normally assigned to other work centers or part-time  employees to properly staff the Property, reduced, increased or emergency work load and the like  including the property manager, business manager, assistant managers, leasing directors, or other  administrative personnel, maintenance employees or maintenance supervisors whose wages and  related expenses shall be reimbursed on a pro rata basis for the time actually spent at the  Property. A property manager or business manager at the Property and  any other persons  performing functions substantially similar to those of a business manager, including but not  limited to assistant managers, leasing directors, leasing agents, sales directors, sales agents,  bookkeepers, and other administrative and/or maintenance personnel performing work at the site,  and on-site maintenance personnel, shall not be considered executive employees of Manager.  All reimbursable payments made by Manager hereunder shall be reimbursed from funds  deposited in an account established pursuant to Section 5.2 of this Agreement. Manager shall  not be obligated to make any advance to or for the account of Owner nor shall Manager be  obligated to incur any liability or obligation for the account of Owner without assurance that the  necessary funds for the discharge thereof will be provided by Owner. In the performance of its  duties as agent and manager of the Property, Manager shall act solely as an independent  contractor of Owner. All debts and liabilities to third persons incurred by Manager in the course  of its operation and management of the Property shall be the debts and liabilities of Owner only,  and Manager shall not be liable for any such debt or liabilities, except to the extent Manager has  exceeded its authority hereunder.         Section 3.2 Covenants Concerning  Payment  of Operating Expenses. Owner  covenants to pay all sums for reasonable operating expenses in excess of gross receipts required  to operate the Property upon written notice and demand from Manager within five days after  receipt of written notice for payment thereof.         Section 3 .3 Employment of Personnel. Manager shall use its diligent efforts to  investigate, hire, pay, supervise and discharge the personnel necessary to be employed by it to  properly maintain, operate and lease the Property, including without limitation a property  manager or business manager at the Property. Such personnel shall in every instance be deemed  agents or employees, as the case may be, of Manager. Owner has no right of supervision or  direction of agents or employees of Manager whatsoever; however, Owner shall have the right to  require the reassignment or termination of any employee. All Owner directives shall be  communicated to Manager's senior level management employees. Manager and all personnel of  Manager who handle or who are responsible for handling Owner's monies shall be bonded in  favor of Owner. Manager agrees to obtain and keep in effect fidelity insurance in an amount not  less than Two Hundred Fifty Thousand Dollars ($250,000). All reasonable salaries, wages and  other compensation of personnel employed by Manager, including so-called fringe benefits,  worker's compensation, medical and health insurance and the like, shall be deemed to be  reimbursable expenses of Manager. Manager may allow its employees who work at the Property  and provide services to the Property after normal business hours, to reside at the Property for  reduced rents (or  rent fee as provided in the Operating Budget) in consideration of their benefit   {10426691.2}                         4  

 

to Owner and the Property, provided such reduced rents are reflected in the Annual Business  Plan.         Section 3.4 Utility and Service Contracts. Manager shall, at Owner's expense and in  Owner's name or in Manager's name as agent for Owner, enter into contracts for water,  electricity, gas, fuel, oil, telephone, vermin extermination, trash removal, cable television,  security protection and other services deemed by Manager to be necessary or advisable for the  operation of the Property. Manager shall also, in Owner's name or in Manager's name as agent  for Owner and at Owner's expense, place orders for such equipment, tools, appliances, materials,  and supplies as are reasonable and necessary to properly maintain the Property. Owner agrees to  pay or reimburse Manager for all expenses and liabilities incurred by reason of this Section  provided that such amounts are in accordance with the Operating Budget.         Section 3.5 Maintenance and Repair of Property. Manager shall use diligent efforts  to maintain, at Owner's expense, the buildings, appurtenances and grounds of the Property in  good condition and repair, including interior and exterior cleaning, painting and decorating,  plumbing, carpentry and such other normal maintenance and repair work as may be necessary or  reasonably desirable taking into consideration the amount allocated therefor in the Ammal  Business Plan. With respect to any expenditure not contemplated by the Annual Business Plan,  Manager shall not incur any individual item of repair or replacement in excess of Five Thousand  Dollars ($5,000.00) unless authorized in writing by Owner's Representative, except, however,  that emergency repairs immediately necessary for the preservation and safety of the Property or  to avoid the suspension of any service to the Property or danger of injury to persons or damage to  property may be made by Manager without the approval of Owner's Representative. Owner  shall not establish standards of maintenance and repair that violate or may violate any laws,  rules, restrictions or regulations applicable to Manager or the Property or that expose Manager to  risk ofliability to tenants or other persons.         Section 3.6 Supervision of Major Capital Improvements or Repairs. Intentionally  omitted.         Section 3. 7 Insurance.               (a)   Owner Requirements. Owner agrees to maintain all forms of insurance  required by law or by any loan requirements for the Property and as otherwise deemed by Owner  to be reasonable and necessary to adequately protect Owner and Manager, including but not  limited to public liability insurance, boiler insurance, fire and extended coverage insurance, and  burglary and theft insurance. All insurance coverage shall be placed with such companies, in  such amounts and with such beneficial interest appearing therein as shall be reasonably  acceptable to Owner. Public liability insurance shall be maintained in such amounts as Owner  determines as commercially reasonable or as otherwise required by its lenders or investors, but in  no case in an amount less than $5,000,000.               Owner agrees to timely provide evidence of required insurance to Manager, and  acknowledges that if evidence of insurance coverage is not timely furnished, Manager may, but  shall not be obligated to, obtain such coverage on Owner's behalf. Manager shall be named an  additional insured on all Owner obtained insurance.   {10426691.2}                         5  

 

            (b)   Manager Requirements. Manager agrees to maintain, at its own expense,  public liability insurance in an amount not less than Two Million Dollars ($2,000,000) and all  other forms of insurance required by law and as otherwise deemed by Owner and Manager to be  reasonable and necessary to adequately protect Owner and Manager, including but not limited to  workers compensation insurance, professional liability, employee practices, and fidelity  insurance. Manager agrees to timely provide evidence of required insurance to Owner and to  name Owner as an additional insured on appropriate policies.               Manager shall use its diligent efforts to investigate and make a written report to  the insurance company as to all accidents, claims for damage relating to the ownership, operation  and maintenance of the Property, any damage or destruction to the Property and the estimated  cost of repair thereof, and shall prepare any  and all reports for any insurance company in  connection therewith. All such reports shall be timely filed with the insurance company as  required under the terms of the insurance policy involved. With the prior written approval of  Owner, Manager is authorized to settle any and all claims against insurance companies arising  out of any policies, including the execution of proofs of loss, the adjustment of losses, signing of  receipts and collection of monies (no approval by Owner shall be required for the settlement of  claims of $5,000 or less).               ( c)  Loss or Liability Claims. Owner and Manager mutually agree for the  benefit of each other to look only to the appropriate insurance coverages in effect pursuant to this  Agreement in the event any demand, claim, action, damage, loss, liability or expense occurs as a  result of injury to person or damage to property, regardless whether any such demand, claim,  action, damage, loss, liability or expense is caused or contributed to, by or results from the  negligence of Owner or Manager or their respective subsidiaries, affiliates, employees, directors,  officers, agents or independent contractors and regardless whether the injury to person or damage  to property occurs in and about the Property or elsewhere as a result of the performance of this  Agreement. Except for claims that are covered by the indemnity contained in Section 3.7(d)  below, Owner agrees that Owner's insurance shall be primary without right of subrogation  against Manager with respect to all claims, actions, damage, loss or liability in or about the  Property. Nevertheless, in the event such insurance proceeds are insufficient to satisfy ( or such  insurance does not cover) the demand, claim, action, loss, liability or expense, Owner agrees, at  its expense, to indemnify and hold Manager and its subsidiaries, affiliates, officers,  directors,  employees, agents or independent contractors harmless to the extent of excess liability. For  purposes of this Section 3.7(c), any deductible amount under any policy of insurance shall not be  deemed to be included as part of collectible insurance proceeds.               ( d)  Indemnification. Notwithstanding anything contained in this Agreement  to the contrary, Owner shall defend, indemnify, and hold harmless Manager and its  representative subsidiaries, affiliates, officers,  directors, employees, agents or independent  contractors from and against all claims, demands, or legal proceedings (including expenses and  reasonable attorney's fees incurred in connection with the defense of any such matter) (each a  "Claim") that are brought against Manager arising out of the operation or management of the  Project, except with respect to claims arising out of Manager's gross negligence or willful  misconduct. Manager shall defend, indemnify, and hold harmless Owner and its representative  subsidiaries, affiliates, officers, directors, employees, agents or independent contractors from all  Claims arising out of the gross negligence or willful misconduct of Manager. The   {10426691.2)                         6  

 

indemnification obligations under this Section 3.7(d) shall survive termination of this  Agreement.               (e)   Acts of Tenants and Third Parties. In no event shall Manager have any  liability to Owner or others for any acts of vandalism, trespass or criminal activity of any kind by  tenants or third parties on or with respect to the Property and Owner's insurance shall be primary  insurance without right of subrogation against Manager regarding claims arising out of or  resulting from acts of vandalism, trespass or criminal activity.         Section 3.8 Collection of Monies. Manager shall use its diligent efforts to collect all  rents and other charges due from tenants, users of garage spaces, carports, storage spaces (if  any), commercial lessees (if any) and concessionaires (if any) in respect of the Property and  otherwise due Owner with respect to the Property in the ordinary course of business, provided  that Manager does not guarantee the creditworthiness of any tenants, users, lessees or  concessionaires or collectability of accounts receivable from any of the foregoing. Owner  authorizes Manager to request, demand, collect, receive and receipt for all such rent and other  charges and to institute legal proceedings in the name of Owner, and at Owner's expense, for the  collection thereof, and for the dispossession of tenants and other persons from the Property or to  cancel or terminate any lease, license or concession agreement for breach or default thereunder,  and such expense may include the engaging of legal counsel for any such matter. All monies  collected by Manager shall be deposited in the separate bank account referred to in Section 5 .2  herein.         Section 3.9 Manager Disbursements.               (a)   Manager's  Compensation  and  Reimbursements.    From  Gross  Collections, Manager shall be authorized to retain and pay (1) Manager's compensation, together  with all sales or other taxes (other than income) which Manager is obligated, presently or in the  future, to collect and pay to the State or any other governmental authority with respect to the  Property or employees at the Property, (2) the amounts reimbursable to Manager under this  Agreement, (3) the amount of all real estate taxes and other impositions levied by appropriate  authorities with respect to the Property which, if not escrowed with any mortgagee, shall be paid  upon specific written direction of Owner before interest begins to accrue thereon; and  (4)  amounts otherwise due and payable as operating expenses of the Property authorized to be  incurred under the terms of this Agreement.               (b)   Debt Service. The provisions of this Section 3.9 regarding disbursements  shall include the payment of debt service related to any mortgages of the Property, unless  otherwise instructed in writing by Owner.               ( c)  Third Parties. All costs, expenses,  debts and liabilities owed to third  persons that are incurred by Manager pursuant to the terms of this Agreement and in the course  of managing, leasing and operating the Property shall be the responsibility of Owner and not  Manager. Owner  agrees to provide sufficient working capital funds to Manager so that all  amounts due and owing may be promptly paid by Manager. Manager is not obligated to advance  any funds. If at any time there is not sufficient cash in the account available to Manager  pursuant to Section 5.2 with which to promptly pay the bills due and owing, Manager will   {10426691.2)                         7  

 

request that the necessary additional funds be deposited by Owner in an amount sufficient to  meet the shortfall. Owner will deposit the additional funds requested by Manager within five  days.               (d)   Other  Provisions. The  proVIs10ns of this Section 3.9 regarding  reimbursements to Manager shall not limit Manager's rights under any other provision of this  Agreement.         Section 3.10 Use and Maintenance of Premises. Manager agrees that it will not  knowingly permit the use of the Property for any purpose that might void any insurance policy  held by Owner or that might render any loss thereunder uncollectible, or that would be in  violation of Govermnental Requirements, or any covenant or restriction of any lease of the  Property. Manager shall use its good faith efforts to secure substantial compliance by the tenants  with the terms and conditions of their respective leases. All costs of correcting or complying  with, and all fines payable in connection with, all orders or violations affecting the Property  placed thereon by any govermnental authority or Board of Fire Underwriters or other similar  body shall be at the cost and expense of Owner.         Section 3 .11 Annual Business Plan.               (a)   Submission. Within 30 days after reasonable request of Owner, Manager  shall prepare and submit to Owner for Owner's approval, an Annual Business Plan for the  promotion, leasing, operations, repair and maintenance of the Property for the Term (as defined  below) (the "Annual Business Plan"). The Annual Business Plan shall include a detailed  budget of projected income and expenses for the Property for such period (the "Operating  Budget").               (b)   Approval.  Manager shall meet with Owner to discuss the proposed  Annual Business Plan and Owner shall approve the proposed Annual Business Plan within 1O   days of its submission to Owner, or as soon thereafter as commercially practicable. To be  effective, any notice which disapproves a proposed Annual Business Plan must contain specific  objections  in reasonable detail to individual line items. If Owner fails to provide an effective  notice disapproving a proposed Annual Business Plan within such 10-day period, the proposed  Annual Business Plan shall be deemed to be approved. Owner acknowledges that the Operating  Budget is intended only to be a reasonable estimate of the income and expenses of the Property  for the applicable period.. Manager shall not be deemed to have made any guarantee, warranty  or representation whatsoever in connection with the Operating Budget.               (c)   Revision. Manager may revise the Operating Budget from time to time,  as necessary, to reflect any unpredicted significant changes, variables or events or to include  significant additional, unanticipated items of revenue and expense. Any such revision shall be  submitted to Owner for approval, which approval shall not be unreasonably withheld, delayed or  conditioned.               ( d)  Implementation. Manager agrees to use diligence and to employ all  reasonable efforts to ensure that the actual costs of maintaining and operating the Property shall  not exceed the Operating Budget either in total or in any one accounting category. Any expense   {10426691.2)                         8  

 

causing or likely to cause a variance of greater than ten percent (10%) or $25,000, whichever is  greater, in any one accounting category for the current month cumulative year-to-date total shall  be promptly explained to Owner by Manager in the next operating statement submitted by  Manager to Owner.         Section 3 .12 Records. Reporting. Manager shall maintain at the regular business  office of Manager or at such other address as Manager shall advise Owner in writing, separate  books and journals and orderly files, containing rental records, insurance policies, leases,  correspondence, receipts, bills and vouchers, and all other documents and papers pertaining  directly to the Property and the operation thereof. All corporate statements, receipts, invoices,  checks, leases, contracts, worksheets, financial statements, books and records, and all other  instruments and documents relating to or arising from the operation or management of the  Property shall be and remain the property of Owner and the Owner shall have the right to inspect  such records at any reasonable time upon prior notice; Manager shall have the right to request  and maintain copies of all such matters, at Manager's cost and expense, at all reasonable times  during the term of this Agreement, and for a reasonable time thereafter not to exceed three years.  All on-site records, including leases, rent rolls, and other related documents shall remain at the  respective Property for which such records are maintained as the property of Owner.         Section 3 .13 Financial Reports.               (a)   Monthly Reports. On or before the fifteenth (15th) day of each month  during the term of this Agreement, Manager shall deliver or cause to be delivered to Owner's  Representative the following reports for the preceding calendar month: general ledger detail  report, rent roll reflecting all tenant charges, security deposit reconciliation report, cash receipts  journal, cash disbursements journal, tenant receivable and accounts payable aging as of the last  day of the month, and bank reconciliations and bank statements for the accounts pursuant to  Sections 5.1 and 5.2. All notices from any mortgagee claiming any default in any mortgage on  the Property, and any other notice from any mortgagee not of a routine nature, shall be promptly  delivered by Manager to Owner's Representative.               (b)   Employee Files. Manager shall execute and file punctually when due all  forms, reports and returns required by law relating to the employment of personnel.         Section 3.14 Compliance with Governmental Requirements. Manager shall comply  with all laws, ordinances and regulations relating to the management, leasing and occupancy of  the Property, including any regulatory or use agreements. Owner acknowledges that Manager  does not hold itself out to be an expert or consultant with respect to, or represent that, the  Property currently complies with applicable ordinances, regulations, rules, statutes, or laws of  governmental entities having jurisdiction over the Properties or the requirements of the Board of  Fire Underwriters or other similar bodies (collectively, "Governmental Requirements").  Manager shall take such action as may be reasonably necessary to comply with any  Governmental Requirements applicable to Manager, including the collection and payment of all  sales and other taxes (other than income taxes) which may be assessed or charged by the State or  any governmental entities in connection with Manager's compensation. If Manager discovers  that the Property does not comply with any Governmental Requirements, Manager shall take  such action as may  be reasonably necessary to bring the Property into compliance with such   {10426691.2)                         9  

 

 Governmental Requirements, subject to the limitation contained in Section 3.5 of this Agreement   regarding  the  making  of  alterations  and  repairs.   Manager,  however,  shall  not  take  any  such   action  as  long  as  Owner  is  contesting  or  has  affirmed  its  intention  to  contest  and  promptly   institute proceedings contesting any such order or requirement.  If, however, failure to comply   promptly with any such order or requirement would or might expose Manager to civil or criminal   liability, Manager shall have the right, but not the obligation, to cause the same to be complied   with and Owner agrees to indemnify and hold Manager harmless for taking such actions and to   promptly reimburse Manager for expenses incurred thereby.  Manager shall promptly, and in no   event later than 72 hours from the time of receipt, notify Owner’s Representative in writing of all   such orders or notices.  Manager shall not be liable for any effort or judgment or for any mistake   of fact or of law, or for anything that it may do or refrain from doing, except in cases of willful   misconduct or gross negligence of Manager.                                     ARTICLE 4                       MANAGER’S COMPENSATION, TERM          Section 4.1 Fees Paid to Manager.  Commencing on the date hereof, Owner shall pay   to Manager a fee (the “Management Fee”), payable monthly in arrears, in an amount equal to   Two and One Half Percent (2.5%) of Gross Collections for such month with a minimum fee of   $1,000.00/month.   The  Management  Fee  shall  not  be  subject  to  off-sets  and  charges  unless   agreed upon by the parties.  Pass-Through Amounts shall be collected monthly by Manager, as   applicable.            Section 4.2 Term.  This Agreement shall commence on the Effective Date, and shall   thereafter continue for a period of six (6) months from the Effective Date (the “Term”), unless   otherwise terminated as provided herein.  Thereafter, if neither party gives written notice to the   other at least 60 days prior to the expiration date hereof that this Agreement is to terminate, then   this Agreement shall be automatically renewed on a month-to-month basis.            Section 4.3 Termination Rights.  Notwithstanding  anything  that  may  be  contained   herein  to  the  contrary,  Owner  may  terminate  this  Agreement  at  any  time  by  giving  Manager   thirty  (30)  days  written  notice  thereof  upon  a determination  of  gross  negligence,  willful   misconduct or bad acts of Manager or any of its employees, and this Agreement shall terminate   immediately upon any sale of the Property to Steadfast Asset Holdings, Inc., SIR Tapestry Park,   LLC  or  any  affiliate  of  either.   If  Owner  or Manager  shall  materially  breach  its  obligations   hereunder, and such breach remains uncured for a period of 30 days after written notification of   such breach, the party not in breach hereunder may terminate this Agreement by giving written  notice to the other.  Any notice given pursuant to this Article 4, shall be sent by certified mail.           Section 4.4 Duties on Termination.  Upon  any  termination  of  this  Agreement  as   contemplated  in  Section  4.3,  Manager  shall  be  entitled  to  receive  all  compensation  and   reimbursements, if any, due to Manager through the date of termination.  Within 30 days after   any  termination,  Manager  shall  deliver  to  Owner’s  Representative,  the  reports  required  by   Section 3.13(a) for any period not covered by such a report at time of termination.  In addition,   upon  termination  of  this  Agreement  for  any  reason,  Manager  will  submit  to  Owner  within   30 days after termination any reports required hereunder, all of the cash and bank accounts of the   Property, including, without limitation, the Security Deposit Account, investments and records.    {10426691.2}                        10     

 

Manager will, within 30 days after termination, tum over to Owner all copies of all books and  records kept for the Property. If Manager desires to retain records of the Property, Manager must  reproduce them at its own expense.                                     ARTICLES       PROCEDURES FOR HANDLING RECEIPTS AND OPERATING CAPITAL         Section 5.1 Security Deposits. Manager shall collect, deposit, hold, disburse and pay  security deposits as required by applicable State law and all other applicable laws, and in  accordance with the terms of each tenant's lease. The amount of each security deposit will be  specified in the tenant's lease. Security deposits shall be deposited into a separate non-interest­ bearing account unless otherwise required by law (the  "Security Deposit Account") at a  Depository selected by Manager and approved by Owner. The Security Deposit Account shall  be established in the name of Manager and held separate from all other of Manager's funds and  accounts, unless Owner informs Manager, in writing that it intends to hold the Security Deposit  Account. If such account is held by Manager, only representatives of Manager will be  signatories to this account. To the extent possible, the Security Deposit Account shall be fully  insured by the Federal Deposit Insurance Corporation (FDIC). Owner agrees to indemnify and  hold harmless Manager, and Manager's representatives, officers, directors and employees for any  loss or liability with respect to any use by Owner of the tenant security deposits that is  inconsistent with the terms of tenant leases and applicable laws.         Section 5.2 Separation of Owner's Monies. Manager shall deliver all collected  rents, charges and other amounts received in connection with the management and operation of  the Property (except for tenants' security deposits, which will be handled as specified in this  Agreement) to a Depository selected by Manager and approved by Owner.         Section 5 .3 Depository Accounts. Except to the extent that Manager has not  complied with its obligations under Sections 2.4 and 5.2, Owner and Manager agree that  Manager shall have no liability for loss of funds of Owner contained in the bank accounts for the  Property maintained by Owner or Manager pursuant to this Agreement due to insolvency of the  bank or financial institution in which its accounts are kept, whether or not the amounts in such  accounts exceed the maximum amount of federal or other deposit insurance applicable with  respect to the financial institution in question.         Section 5.4 Working Capital. In addition to the funds derived from the operation of  the Property, Owner shall furnish and maintain in the operating accounts of the Property such  other funds as may be necessary to discharge financial commitments required to efficiently  operate the Property and to meet all payrolls and satisfy, before delinquency, and to discharge all  accounts payable. Manager shall have no responsibility or obligation with respect to the  furnishing of any such funds. Nevertheless, Manager shall have the right, but not the obligation,  to advance funds or contribute property on behalf of Owner to satisfy obligations of Owner in  connection with this Agreement and the Property. Manager shall keep appropriate records to  document all reimbursable expenses paid by Manager, which records shall be made available for  inspection by Owner or its agents on request. Owner agrees to reimburse Manager upon demand  for money paid or property contributed in connection with the Property and this Agreement.    {10426691.2)                        11  

 

      Section 5.5 Authorized Signatures. Any persons from time to time designated by  Manager shall be authorized signatories on all bank accounts established by Manager pursuant to  this Agreement and shall have authority to make disbursements pursuant to the terms of this  Agreement from such accounts. Funds may be withdrawn from all bank accounts established by  Manager, in accordance with this Article 5, only upon the signature of an individual who has  been granted that authority by Manager and funds may not be withdrawn from such accounts by  Owner unless Manager is in default hereunder.                                     ARTICLE6                                MISCELLANEOUS         Section 6.1 Assignment. Upon 30 days written notification, Owner may assign its  rights and obligations to any successor in title to the Property and upon such assignment shall be  relieved of all liability accruing after the effective date of such assignment. This Agreement may  not be assigned or delegated by Manager without the prior written consent of Owner, which  Owner may withhold in its sole discretion. Any unauthorized assignment shall be null and void  ab initio, and shall not in any event release Manager from any liabilities hereunder.         Section 6.2 Notices. All notices required or permitted by this Agreement shall be in  writing and shall be sent by registered or certified mail, addressed in the case of Owner to  Arlington Montclair II, LLC, c/o Arlington Properties, Inc., 2117 Second Avenue North,  Birmingham, Alabama 35203 3759, Attention: David G. Ellis; and in the case of Manager to  Steadfast Management Company, Inc., 18100 Von Karman Avenue, Suite 500, Irvine, CA  92612, Attention: Christopher Hilbert, or to such other address as shall, from time to time, have  been designated by written notice by either party given to the other party as herein provided.         Section 6.3 Entire Agreement. This Agreement shall constitute the entire agreement  between the parties hereto and no modification thereof shall be effective unless in writing  executed by the parties hereto.         Section 6.4 No Partnership. Nothing contained in this Agreement shall constitute or  be construed to be or create a partnership or joint venture between Owner, its successors or  assigns, on the one part, and Manager, its successors and assigns, on the other part.         Section 6.5 No Third Party Beneficiary. Neither this Agreement nor any part hereof  nor any service relationship shall inure to the benefit of any third party, to any trustee in  bankruptcy, to any assignee for the benefit of creditors, to any receiver by reason of insolvency,  to any other fiduciary or officer representing a bankrupt or insolvent estate of either party, or to  the creditors or claimants of such an estate. Without limiting the generality of the foregoing  sentence, it is specifically understood and agreed that such insolvency or bankruptcy of either  party hereto shall, at the option of the other party, void all rights of such insolvent or bankrupt  party hereunder ( or so many of such rights as the other party shall elect to void).         Section 6.6 Severability. If any one or more of the provisions of this Agreement, or  the applicability of any such provision to a specific situation, shall be held invalid or  unenforceable, such provision should be modified to the minimum extent necessary to make it or    {10426691.2)                        12  

 

its application valid and enforceable, and the validity and enforceability of all other provisions of  this Agreement and all other applications of such provisions shall not be affected thereby.         Section 6. 7 Captions, Plural Terms. Unless the context clearly requires otherwise,  the singular number herein shall include the plural, the plural number shall include the singular  and  any gender shall include all genders. Titles and captions herein shall not affect the  construction of this Agreement.         Section 6.8 Attorneys' Fees. Should either party employ an attorney to enforce any  of the provisions of this Agreement, or to recover damages for breach of this Agreement, the  non-prevailing party in any action agrees to pay to the prevailing party all reasonable costs,  damages and expenses, including reasonable attorneys' fees, expended or incurred by the  prevailing party in connection therewith.         Section 6.9 Signs. Manager shall have the right to place signs on the Property in  accordance with applicable Governmental Requirements stating that Manager is the manager and  leasing agent for the Property.         Section 6.10 Survival of Indemnities. The indemnification obligations of the parties  to this Agreement shall survive the termination of this Agreement to the extent of any claim or  cause of action based on an event occurring prior to the date of termination.         Section 6.11 Governing Law.  This Agreement shall be construed under and in  accordance with the laws of the State and is fully performable with respect to the Property in the  county in which the Property is located.         Section 6.12 Competitive Properties. Manager may, individually or with others,  engage or possess an interest in any other project or venture of every nature and description,  including but not limited to, the ownership, financing, leasing, operation, management,  brokerage and sale of real estate projects including apartment projects other than the Property,  whether or not such other venture or projects are competitive with the Property and Owner shall  not have any claim as to such project or venture or to the income or profits derived therefrom.         Section 6.13 Set Off. Without prejudice to Manager's right to terminate this  Agreement in accordance with the terms of this Agreement, Manager may at any time and  without notice to Owner, set off or transfer any sums held by Manager for or on behalf of Owner  in the accounts ( other than the Security Deposit Account) maintained pursuant to this Agreement  in or towards satisfaction of any of Owner's liabilities to Manager in respect of any sums due to  Manager under this Agreement.         Section 6.14 Notice of Default. Manager shall not be deemed in default under this  Agreement, and Owner's right to terminate Manager as a result of such default shall not accrue,  until Owner has delivered written notice of default to Manager and Manager has failed to cure  same within 30 days from the date of receipt of such notice.         Section 6.15 Counterparts. This Agreement may  be executed m two or more  counterparts, each of which shall be deemed to be an original.   {10426691.2)                         13  

 

             This Property Management Agreement is hereby executed by duly authorized  representatives of the parties hereto as of the Effective Date.    OWNER:                         ARLINGTON MONTCLAIR 11,     LLC,                                  an Alabama limited liability company,                                   By: Arlington Properties, Inc., its sole member     :MANAGER:                      STEADFAST MANAGEMENT COMPANY, INC.,                                  a California corporation                                       /J   .   .. ,, ... cf'.7-, __ .                                      //}  J,  4),,/                                  By:i;l'f"/ rf/;# (c:::::-;,,,.c/ .                                  Name: _u.J_~ 1u •Yl (() . . 5 v<'> t I ·-···- ...... ·---·                                  Title: )/1 1 .    -·-····· ............-- .........     {]0426691.2)                           14  

 

                                  EXHIBIT A                      ESTIMATED PASS-THROUGH AMOUNTS   Benefits Administration                               3.0% of total employee costs  IT Infrastructure, Licenses and Support               At cost and expense  Marketing                                             $20.00 per unit per year                                      EXHIBIT A  

 

                                 EXHIBIT B                                  THE PROPERTY     Property Address:  300 Beech Circle, Birmingham, AL 35213.      Tapestry Park Phase II is currently under construction and will have an estimate of 131-units.      {10426691.2}                    EXHIBIT B  

 

                               AMENDMENT TO                     PROPERTY MANAGEMENT AGREEMENT         This AMENDMENT TO PROPERTY MANAGEMENT AGREEMENT  ("Amendment") is dated as of December J_, 2014 ("Effective Date"), and entered into by and  between SIR TAPESTRY PARK, LLC, a Delaware limited liability company ("Owner") and  STEADFAST MANAGEMENT COMP ANY, INC., a California corporation ("Manager").                                        RECITALS         WHEREAS, Owner and Manager have entered into that certain Property Management  Agreement dated August 13, 2013 ("Management Agreement"). Capitalized terms used herein  and not otherwise defined shall have the meanings ascribed to them in the Management  Agreement.         WHEREAS, the parties desire to amend the Management Agreement to modify the  Property description to incorporate Phase II of the project.                                       AGREEMENT         NOW, THEREFORE, for good and valuable consideration, intending to be legally bound  hereby, the parties agree as follows:         1.    Property Description. "Exhibit B" to Management Agreement shall be amended  and replaced in its entirety with attached Exhibit B to this Amendment.         2.    Effect of Amendment. Except as expressly modified in this Amendment, the  terms and conditions of the Management Agreement shall remain in full force and effect.         3.    Counterparts. This Amendment may be executed in one or more counterparts,  each of which will be deemed an original but all of which together shall constitute one and the  same agreement.                             [SIGNATURE PAGE FOLLOWS]  

 

      This Amendment  to Property Management Agreement is hereby executed by duly  authorized representatives of the parties hereto as of the Effective Date.    OWNER:                              SIR TAPESTRY PARK, LLC, a Delaware                                      limited liability company                                       By:   Steadfast Income Advisor, LLC, its                                            Manager   MANAGER:                            ~:.···cSTEADFAST~;e MANAGEMENT COMPANY,                                             Ana Marie del Rio, Vice President  

 

                                  EXHIBITB                                  THE PROPERTY   Tapestry Park is located at 801 Montclair Road, Birmingham, Alabama, in the County of  Jefferson, and described as follows:   The Property consists of two adjacent parcels, Phase I and Phase II totaling 354-units. Phase I  consists of six buildings with 223 units. Phase II has 131 units. Site amenities include  clubhouse with library and internet cafe, grand lawn with Bocce ball court, pool, fitness center,  and carwash. Phase I and II are comprised of 15.9 acres and 5.5 acres, respectively. Phase I was  built in 2013 and Phase II was completed in 2014.  

 

DocuSign Envelope ID: 12223CF0-E576-45B3-BB0F-742BD48DF0CC                   OMNIBUS PROPERTY MANAGEMENT AGREEMENT AMENDMENT                              This OMNIBUS   PROPERTY  MANAGEMENT       AGREEMENT  AMENDMENT        is            effective as  of August 1,  2018  (this  “Amendment”),  by  and among STEADFAST INCOME            ADVISOR,  LLC,  a  Delaware  limited  liability  company (the “Manager”),  as the non-member            manager of,  and  on  behalf  of, each  of the limited liability  companies listed  on Schedule  1            attached hereto and by this reference incorporated herein (each an “Owner”), and STEADFAST            MANAGEMENT  COMPANY,  INC.,  a  California  corporation  (each  an "Management            Company").                                          W I T N E S S E T H:                   WHEREAS, each Owner was organized and operates for the sole and exclusive purpose            of acquiring, owning and operating the multifamily residential project listed on Schedule 1 (each            a “Project”);                   WHEREAS,  each  Owner  entered  into  a  Property  Management  Agreement  with  the            Management  Company  with  respect  to  the  management  and  oversight  of  its  Project  (each  a            “Management Agreement”);                    WHEREAS, Steadfast Income REIT Operating Partnership, L.P., whose general partner            is Steadfast Income REIT, Inc. (the “REIT”), is the sole equity member of each Owner (“Sole            Member”);                   WHEREAS,  the  Board  of  Directors  of  the  REIT,  by  resolution,  approved  certain            modifications to the expenses to be reimbursed to the Management Company under the terms of            the Management Agreement; and                   WHEREAS,  pursuant  to  the  terms  of each Management Agreement, its  terms may  be            amended in writing by the parties thereto;                   NOW,  THEREFORE,  for  and  in  consideration  of  the  mutual  promises  and  covenants            herein contained, and other good and valuable consideration, the receipt and sufficiency of which            are hereby acknowledged, the parties agree as follows:             1.    Definitions.  All capitalized terms not otherwise defined in this Amendment shall have                  the definitions given such terms in the Management Agreements.             2.    Exhibit A.  Exhibit A, Estimated  Pass-Through  Amounts, to  each  Management                  Agreement  is  hereby  deleted  and  replaced  with Exhibit  A attached  hereto  and                  incorporated herein by reference.               3.    Ratification.  In all other respects, the Management Agreements are hereby ratified and                  confirmed.               4.    Counterparts. This Amendment may be executed in multiple counterparts, each of which                  shall  constitute  an  original  document  and  all  of  which  together  shall  constitute  one                  agreement.                                                           

 

DocuSign Envelope ID: 12223CF0-E576-45B3-BB0F-742BD48DF0CC                   IN WITNESS WHEREOF, the undersigned have executed this Amendment as of the            date first above written.                                                            STEADFAST INCOME ADVISOR, LLC,                                                as the Manager of each Owner                                                                                                                                                By:                                                                                       Ella Neyland, President                                                                                                                                                                                                STEADFAST MANAGEMENT COMPANY,                                                INC.                                                                                                                                                By:                                                                                       Michael Brown, President                                                                2       

 

DocuSign Envelope ID: 12223CF0-E576-45B3-BB0F-742BD48DF0CC                                                         SCHEDULE I                                                                                                             Owner                            Project                             Management                                                                            Agreement Date                                                                                   Brice Grove Apartments, LLC      BriceGrove Park Apartments          8/29/2013       SIR Carrington Champion, LLC     Carrington at Champion Forest       11/7/2013       SIR Carrington Park, LLC         Carrington Park at Huffmeister, The 11/7/2013       SIR Carrington Place, LLC        Carrington Place                    11/7/2013       SIR Clarion Park, LLC            Clarion Park Apartments             6/28/2011       SIR Creekside, LLC               Reserve at Creekside Village        3/28/2014       SIR Dawntree, LLC                Dawntree                            8/15/2013       SIR Deep Deuce, LLC              Deep Deuce at Bricktown             3/28/2013       SIR Double Creek, LLC            Double Creek Flats                  5/7/2018       SIR EBT Lofts, LLC               EBT Lofts                           12/30/2011       SIR Estancia, LLC                Estancia Apartments                 6/29/2012       SIR Forty 57, LLC                Forty57 at Glasford                 12/20/2012       SIR Hamburg, LLC                 Retreat at Hamburg Place, The       9/5/2013       SIR Heights, LLC                 Heights at 2121, The                9/30/2013       Hilliard Grand Apartments, LLC   Hilliard Grand Apartments           12/31/2012       Hilliard Park Partners, LLC      Hilliard Park Apartments            9/11/2012       Hilliard Meadows Apartments, LLC Hilliard Summit Apartments          9/28/2012       SIR Huffmeister Villas, LLC      Villas at Huffmeister, The          10/10/2013       SIR Jefferson, LLC               Jefferson at Perimeter Apartment Homes 6/11/2018       SIR Katy Ranch, LLC              Echo at Katy Ranch                  12/19/2013       SIR Kingwood Villas, LLC         Villas at Kingwood, The             10/10/2013       SIR Library Lofts, LLC           Library Lofts East                  2/28/2013       SIR Mallard Crossing, LLC        Mallard Crossing Apartment Homes    12/27/2013       SIR Mapleshade, LLC              Mapleshade Park                     3/31/2014       SIR Montclair Parc, LLC          Montclair Parc Apartments           4/26/2012       SIR Montecito, LLC               Montecito Apartments                12/31/2012       SIR Oak Crossing, LLC            Oak Crossing                        6/3/2014       SIR Quail North, LLC             Retreat at Quail North, The         6/12/2013       SIR Riverford, LLC               Riverford Crossing Apartments       12/28/2012       SIR Sienna Grand, LLC            Heritage Grand at Sienna Plantation 12/20/2013       SIR Sonoma Grande, LLC           Sonoma Grande Apartments            5/24/2012       SIR Spring Creek, LLC            Spring Creek of Edmond Apartments   3/9/2012       SIR Stuart Hall, LLC             Stuart Hall Lofts                   8/27/2013       SIR Sycamore Terrace, LLC        Sycamore Terrace Apartments         11/27/2012       SIR Tapestry Park, LLC           Tapestry Park                       8/13/2013       SIR Trails Edge, LLC             Lodge at Trails Edge, The           6/18/2013       SIR Truman Farm, LLC             Truman Farm Villas                  12/22/2011       SIR Waterford Riata, LLC         Waterford Park at Riata Ranch       10/10/2013       SIR Waterford, LLC               Waterford on the Meadow             7/3/2013                                                                                                              

 

DocuSign Envelope ID: 12223CF0-E576-45B3-BB0F-742BD48DF0CC                                              EXHIBIT A                                                                                      ESTIMATED PASS-THROUGH AMOUNTS                                                                           The following sets out the Estimated Pass-Through Amounts:                            Marketing, Training and Continuing Education: $30 per unit per year.                                IT infrastructure, licenses and support:                                1.      IT licenses including such things as software, hardware, and usage fees will be                        billed at cost;                                2.      IT support expenses will be billed at $500 per user per month; and                                3.      any unusual, non-recurring projects or IT support needed for a property will be                        billed at actual costs including but not limited to travel costs.               Benefits Administration Fee:                3.0% of total employee costs.                                                                        

 

DocuSign Envelope ID: 97461D31-4F0F-40FC-8B64-9765473B4D0B                   OMNIBUS PROPERTY MANAGEMENT AGREEMENT AMENDMENT                              This  OMNIBUS  PROPERTY  MANAGEMENT  AGREEMENT  AMENDMENT  is            effective  as  of  May  1,  2019 Amendment ,  by  and  among  STEADFAST  INCOME            ADVISOR,  LLC,  a  Delaware  limited  liability  company  (the Manager ),  as  the  non-member            manager  of,  and  on  behalf  of,  each  of  the  limited  liability  companies  listed  on  Schedule  1            attached hereto and by this reference incorporated herein (each an Owner , and STEADFAST            MANAGEMENT COMPANY, INC., a California corporation (the "Management Company").                                          W I T N E S S E T H:                   WHEREAS, each Owner was organized and operates for the sole and exclusive purpose            of acquiring, owning and operating the multifamily residential project listed on Schedule 1 (each              Project ;                   WHEREAS,  each  Owner  entered  into  a  Property  Management  Agreement  with  the            Management Company with respect to the management and oversight of its Project (as amended,                  Management Agreement                     WHEREAS, Steadfast Income REIT Operating Partnership, L.P., whose general partner            is Steadfast Income           REIT   is the sole equity member of each Owner Sole            Member                     WHEREAS,  the  Board  of  Directors  of  the  REIT,  by  resolution,  approved  certain            modifications to the expenses to be reimbursed to the Management Company under the terms of            the Management Agreement; and                   WHEREAS,  pursuant  to  the  terms  of  each  Management  Agreement,  its  terms  may  be            amended in writing by the parties thereto.                   NOW,  THEREFORE,  for  and  in  consideration  of  the  mutual  promises  and  covenants            herein contained, and other good and valuable consideration, the receipt and sufficiency of which            are hereby acknowledged, the parties hereto agree as follows:             1.    Definitions.  All capitalized terms not otherwise defined in this Amendment shall have                  the definitions given such terms in the Management Agreements.             2.    Exhibit  A.   Exhibit  A,  Estimated  Pass-Through  Amounts,  to  each  Management                  Agreement  is  hereby  deleted  and  replaced  with  Exhibit  A  attached  hereto  and                  incorporated herein by reference.               3.    Ratification.  In all other respects, the Management Agreements are hereby ratified and                  confirmed.               4.    Counterparts. This Amendment may be executed in multiple counterparts, each of which                  shall  constitute  an  original  document  and  all  of  which  together  shall  constitute  one                  agreement.                                                           

 

DocuSign Envelope ID: 97461D31-4F0F-40FC-8B64-9765473B4D0B                   IN WITNESS WHEREOF, the undersigned have executed this Amendment to be            effective as of the date first above written.                                                            STEADFAST INCOME ADVISOR, LLC,                                                as the Manager of each Owner                                                                                                                                                By:                                                                                 Ella Neyland, President                                                                                                                                                                                                STEADFAST MANAGEMENT COMPANY,                                                INC.                                                                                                                                                By:                                                                                 Michael Brown, President                                                                2       

 

                                     SCHEDULE I   Owner                            Project                             Management                                                                       Agreement Date   Brice Grove Apartments, LLC      BriceGrove Park Apartments          8/29/2013  SIR Carrington Champion, LLC     Carrington at Champion Forest       11/7/2013  SIR Carrington Park, LLC         Carrington Park at Huffmeister, The 11/7/2013  SIR Carrington Place, LLC        Carrington Place                    11/7/2013  SIR Clarion Park, LLC            Clarion Park Apartments             6/28/2011  SIR Creekside, LLC               Reserve at Creekside Village        3/28/2014  SIR Deep Deuce, LLC              Deep Deuce at Bricktown             3/28/2013  SIR Double Creek, LLC            Double Creek Flats                  5/7/2018  SIR Forty 57, LLC                Forty57 at Glasford                 12/20/2012  SIR Hamburg, LLC                 Retreat at Hamburg Place, The       9/5/2013  Hilliard Grand Apartments, LLC   Hilliard Grand Apartments           12/31/2012  Hilliard Park Partners, LLC      Hilliard Park Apartments            9/11/2012  Hilliard Meadows Apartments, LLC Hilliard Summit Apartments          9/28/2012  SIR Huffmeister Villas, LLC      Villas at Huffmeister, The          10/10/2013  SIR Jefferson, LLC               Jefferson at Perimeter Apartment Homes 6/11/2018  SIR Kingwood Villas, LLC         Villas at Kingwood, The             10/10/2013  SIR Mallard Crossing, LLC        Mallard Crossing Apartment Homes    12/27/2013  SIR Montclair Parc, LLC          Montclair Parc Apartments           4/26/2012  SIR Montecito, LLC               Montecito Apartments                12/31/2012  SIR Oak Crossing, LLC            Oak Crossing                        6/3/2014  SIR Quail North, LLC             Retreat at Quail North, The         6/12/2013  SIR Riverford, LLC               Riverford Crossing Apartments       12/28/2012  SIR Sienna Grand, LLC            Heritage Grand at Sienna Plantation 12/20/2013  SIR Spring Creek, LLC            Spring Creek of Edmond Apartments   3/9/2012  SIR Sycamore Terrace, LLC        Sycamore Terrace Apartments         11/27/2012  SIR Tapestry Park, LLC           Tapestry Park                       8/13/2013  SIR Truman Farm, LLC             Truman Farm Villas                  12/22/2011  SIR Waterford Riata, LLC         Waterford Place at Riata Ranch      10/10/2013  SIR Waterford, LLC               Waterford on the Meadow             7/3/2013  

 

DocuSign Envelope ID: 97461D31-4F0F-40FC-8B64-9765473B4D0B                                              EXHIBIT A                                                                                      ESTIMATED PASS-THROUGH AMOUNTS                                                                           The following sets out the Estimated Pass-Through Amounts:                             Marketing, Training and Continuing Education:  $30 per unit per year.                                 IT infrastructure, licenses and support:                                1.      IT licenses including such things as software, hardware, and usage fees will be                        billed at cost;                                2.      IT support expenses will be billed at $500 per user per month; and                                3.      any unusual, non-recurring projects or IT support needed for a property will be                        billed at actual costs including but not limited to travel costs.                Benefits Administration Fee:  3.0% of total employee costs.                            Revenue Management Fee:   $1.00 per month per unit

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