Document:

Filed by Bowne Pure Compliance

Exhibit 4.4

PROMISSORY NOTE

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Principal	 	Loan Date	 	Maturity	 	Loan No	 	Call / Coll	 	Account	 	Officer	 	Initials
	$6,597,500.00
	 	07-09-2008
	 	07-09-2011
	 	05500412-10
	 	6/21
	 	 	 	053	 	 

References in the boxes above are for Lender’s use only and do not limit the applicability of this document to any particular loan or item.
Any item above containing “***” has been omitted due to text length limitations.

	 	 	 	 	 	 	 
	Borrower:

	 	NETREIT, A CALIFORNIA CORPORATION
	 	Lender:
	 	MILE HIGH BANKS
	 

	 	365 S. RANCHO SANTA FE ROAD, SUITE 300
	 	 	 	DTC BRANCH
	 

	 	SAN MARCOS, CA 92078
	 	 	 	8400 E. CRESCENT PKWY #150
	 

	 	 	 	 	 	GREENWOOD VILLAGE, CO 80111
	 

	 	 	 	 	 	(303) 221-5100

	 	 	 	 	 
	Principal Amount: $6,597,500.00
	 	Interest Rate: 6.250%
	 	Date of Note: July 9, 2008

PROMISE TO PAY. NETREIT, A CALIFORNIA CORPORATION (“Borrower”) promises to pay to MILE
HIGH BANKS (“Lender”), or order, in lawful money of the United States of America, the
principal amount of Six Million Five Hundred Ninety-seven Thousand Five Hundred & 00/100
Dollars ($6,597,500.00) or so much as may be outstanding, together with interest at the rate
of 6.250% per annum on the unpaid outstanding principal balance of each advance. Interest
shall be calculated from the date of each advance until repayment of each advance. The
interest rate may change under the terms and conditions of the “INTEREST AFTER DEFAULT”
section.

PAYMENT. Borrower will pay this loan in full immediately upon Lender’s demand. If no demand is
made, Borrower will pay this loan in one payment of all outstanding principal plus all accrued
unpaid interest on July 9, 2011. In addition, Borrower will pay regular monthly payments of
all accrued unpaid interest due as of each payment date, beginning August 9, 2008, with all
subsequent interest payments to be due on the same day of each month after that. Unless
otherwise agreed or required by applicable law, payments will be applied first to any accrued
unpaid interest; then to principal; then to any unpaid collection costs; and then to any late
charges. The annual interest rate for this Note is computed on a 365/360 basis; that is, by
applying the ratio of the annual interest rate over a year of 360 days, multiplied by the
outstanding principal balance, multiplied by the actual number of days the principal balance
is outstanding. Borrower will pay Lender at Lender’s address shown above or at such other
place as Lender may designate in writing.

PREPAYMENT; MINIMUM INTEREST CHARGE. Borrower agrees that all loan fees and other prepaid
finance charges are earned fully as of the date of the loan and will not be subject to refund
upon early payment (whether voluntary or as a result of default), except as otherwise required
by law. In any event, even upon full prepayment of this Note, Borrower understands that Lender
is entitled to a minimum interest charge of $25.00. Other than Borrower’s obligation to pay
any minimum interest charge, Borrower may pay without penalty all or a portion of the amount
owed earlier than it is due. Early payments will not, unless agreed to by Lender in writing,
relieve Borrower of Borrower’s obligation to continue to make payments of accrued unpaid
interest. Rather, early payments will reduce the principal balance due. Borrower agrees not to
send Lender payments marked “paid in full”, “without recourse”, or similar language. If
Borrower sends such a payment, Lender may accept it without losing any of Lender’s rights
under this Note, and Borrower will remain obligated to pay any further amount owed to Lender.
All written communications concerning disputed amounts, including any check or other payment
instrument that indicates that the payment constitutes “payment in full” of the amount owed or
that is tendered with other conditions or limitations or as full satisfaction of a disputed
amount must be mailed or delivered to: MILE HIGH BANKS, DTC BRANCH, 8400 E. CRESCENT PKWY
#150, GREENWOOD VILLAGE, CO 80111.

LATE CHARGE. If a payment is 11 days or more late, Borrower will be charged 5.000% of the
unpaid portion of the regularly scheduled payment or $20.00, whichever is greater.

INTEREST AFTER DEFAULT. Upon default, including failure to pay upon final maturity, the
interest rate on this Note shall be increased to 24.000% per annum. However, in no event will
the interest rate exceed the maximum interest rate limitations under applicable law.

DEFAULT. Each of the following shall constitute an event of default
(“Event of Default”) under this Note:

Payment Default. Borrower fails to make any payment when due under this Note.

Other Defaults. Borrower fails to comply with or to perform any other term, obligation,
covenant or condition contained in this Note or in any of the related documents or to
comply with or to perform any term, obligation, covenant or condition contained in any
other agreement between Lender and Borrower.

Default in Favor of Third Parties. Borrower or any Grantor defaults under any loan,
extension of credit, security agreement, purchase or sales agreement, or any other
agreement, in favor of any other creditor or person that may materially affect any of
Borrower’s property or Borrower’s ability to repay this Note or perform Borrower’s
obligations under this Note or any of the related documents.

False Statements. Any warranty, representation or statement made or furnished to Lender by
Borrower or on Borrower’s behalf under this Note or the related documents is false or
misleading in any material respect, either now or at the time made or furnished or becomes
false or misleading at any time thereafter.

Insolvency. The dissolution or termination of Borrower’s existence as a going business, the
insolvency of Borrower, the appointment of a receiver for any part of Borrower’s property,
any assignment for the benefit of creditors, any type of creditor workout, or the
commencement of any proceeding under any bankruptcy or insolvency laws by or against
Borrower.

Creditor or Forfeiture Proceedings. Commencement of foreclosure or forfeiture proceedings,
whether by judicial proceeding, self-help, repossession or any other method, by any
creditor of Borrower or by any governmental agency against any collateral securing the
loan. This includes a garnishment of any of Borrower’s accounts, including deposit
accounts, with Lender. However, this Event of Default shall not apply if there is a good
faith dispute by Borrower as to the validity or reasonableness of the claim which is the
basis of the creditor or forfeiture proceeding and if Borrower gives Lender written notice
of the creditor or forfeiture proceeding and deposits with Lender monies or a surety bond
for the creditor or forfeiture proceeding, in an amount determined by Lender, in its sole
discretion, as being an adequate reserve or bond for the dispute.

Events Affecting Guarantor. Any of the preceding events occurs with respect to any
guarantor, endorser, surety, or accommodation party of any of the indebtedness or any
guarantor, endorser, surety, or accommodation party dies or becomes incompetent, or revokes
or disputes the validity of, or liability under, any guaranty of the indebtedness evidenced
by this Note.

Change In Ownership. Any change in ownership of twenty-five percent (25%) or more of the
common stock of Borrower.

Adverse Change. A material adverse change occurs in Borrower’s financial condition, or
Lender believes the prospect of payment or performance of this Note is impaired.

Insecurity. Lender in good faith believes itself insecure.

LENDER’S RIGHTS. Upon default, Lender may declare the entire unpaid principal balance under
this Note and all accrued unpaid interest immediately due, and then Borrower will pay that
amount.

ATTORNEYS’ FEES; EXPENSES. Lender may hire or pay someone else to help collect this Note if
Borrower does not pay. Borrower will pay Lender the reasonable costs of such collection. This
includes, subject to any limits under applicable law, Lender’s attorneys’ fees and Lender’s
legal expenses, whether or not there is a lawsuit, including without limitation attorneys’ fees
and legal expenses for bankruptcy proceedings (including efforts to modify or vacate any
automatic stay or injunction), and appeals. If not prohibited by applicable law, Borrower also
will pay any court costs, in addition to all other sums provided by law.

GOVERNING LAW. This Note will be governed by federal law applicable to Lender and, to the
extent not preempted by federal law, the laws of the State of Colorado without regard to its
conflicts of law provisions. This Note has been accepted by Lender in the State of Colorado.

CHOICE OF VENUE. If there is a lawsuit, Borrower agrees upon Lender’s request to submit to the
jurisdiction of the courts of BOULDER County, State of Colorado.

DISHONORED ITEM FEE. Borrower will pay a fee to Lender of $25.00 if Borrower makes a payment on
Borrower’s loan and the check or preauthorized charge with which Borrower pays is later
dishonored.

RIGHT OF SETOFF. To the extent permitted by applicable law, Lender reserves a right of setoff
in all Borrower’s accounts with Lender (whether checking, savings, or some other account). This
includes all accounts Borrower holds jointly with someone else and all accounts Borrower may
open in the future. However, this does not include any IRA or Keogh accounts, or any trust
accounts for which setoff would be prohibited by law. Borrower authorizes Lender, to the extent
permitted by applicable law, to charge or setoff all sums owing on the indebtedness against any
and all such accounts.

 

 

 

	 	 	 	 	 
	 
	 	PROMISSORY NOTE	 	 
	Loan No: 05500412-10
	 	(Continued)
	 	Page 2

LINE OF CREDIT. This Note evidences a revolving line of credit. Advances under this Note may be
requested orally by Borrower or as provided in this paragraph. All oral requests shall be
confirmed in writing on the day of the request. All communications, instructions, or directions
by telephone or otherwise to Lender are to be directed to Lender’s office shown above. The
following person or persons are authorized to request advances and authorize payments under the
line of credit until Lender receives from Borrower, at Lender’s address shown above, written
notice of revocation of such authority: KENNETH W. ELSBERRY, SECRETARY & CFO of NETREIT, A
CALIFORNIA CORPORATION or JACK K. HEILBRON, PRESIDENT OF NETREIT, A CALIFORNIA CORPORATION.
Borrower agrees to be liable for all sums either: (A) advanced in accordance with the
instructions of an authorized person or (B) credited to any of Borrower’s accounts with Lender.
The unpaid principal balance owing on this Note at any time may be evidenced by endorsements on
this Note or by Lender’s internal records, including daily computer print-outs.

SUCCESSOR INTERESTS. The terms of this Note shall be binding upon Borrower, and upon Borrower’s
heirs, personal representatives, successors and assigns, and shall inure to the benefit of
Lender and its successors and assigns.

GENERAL PROVISIONS. This Note is payable on demand. The inclusion of specific default provisions
or rights of Lender shall not preclude Lender’s right to declare payment of this Note on its
demand. If any part of this Note cannot be enforced, this fact will not affect the rest of the
Note. Lender may delay or forgo enforcing any of its rights or remedies under this Note without
losing them. Borrower and any other person who signs, guarantees or endorses this Note, to the
extent allowed by law, waive presentment, demand for payment, and notice of dishonor. Upon any
change in the terms of this Note, and unless otherwise expressly stated in writing, no party who
signs this Note, whether as maker, guarantor, accommodation maker or endorser, shall be released
from liability. All such parties agree that Lender may renew or extend (repeatedly and for any
length of time) this loan or release any party or guarantor or collateral; or impair, fail to
realize upon or perfect Lender’s security interest in the collateral; and take any other action
deemed necessary by Lender without the consent of or notice to anyone. All such parties also
agree that Lender may modify this loan without the consent of or notice to anyone other than the
party with whom the modification is made. The obligations under this Note are joint and several.

PRIOR TO SIGNING THIS NOTE, BORROWER READ AND UNDERSTOOD ALL THE PROVISIONS OF THIS NOTE.
BORROWER AGREES TO THE TERMS OF THE NOTE.

BORROWER ACKNOWLEDGES RECEIPT OF A COMPLETED COPY OF THIS PROMISSORY NOTE.

BORROWER:

	 	 	 	 	 
	NETREIT, A CALIFORNIA CORPORATION

 	 
	By:  	/s/ Kenneth W. Elsberry
 	 
	 	 	KENNETH   W.   ELSBERRY,   Secretary & CFO of 	 
	 	 	NETREIT, A CALIFORNIA CORPORATION 	 
	 

LASER PRO Lending, Ver. 5,40,00,003 Corp. Harland Financial Solutions,
 Inc. 1997, 2008.
 All Rights Reserved. — CO I:\CFI\LPL\G01.FC TR-1533 PR.8Filed by Bowne Pure Compliance

Exhibit 4.5

	 	 	 	 	 
	RECORDATION REQUESTED BY:
	 	 	 	 
	MILE HIGH BANKS

DTC BRANCH

8400 E. CRESCENT PKWY #150

GREENWOOD VILLAGE, CO 80111
	 	 	 	 
	 
	 	 	 	 
	WHEN RECORDED MAIL TO:
	 	 	 	 
	MILE HIGH BANKS

DTC BRANCH

8400 E. CRESCENT PKWY #150

GREENWOOD VILLAGE, CO 80111
	 	 	 	 
	 
	 	 	 	 
	SEND TAX NOTICES TO:
	 	 	 	 
	NETREIT, A CALIFORNIA CORPORATION

365 S. RANCHO SANTA FE ROAD, SUITE 300

SAN MARCOS, CA 92078
	 	FOR RECORDER’S USE ONLY

DEED OF TRUST

MAXIMUM PRINCIPAL AMOUNT SECURED. The Lien of this Deed of Trust shall not exceed at any one time $6,597,500.00 except
as allowed under applicable Colorado law.

THIS DEED OF TRUST is dated July 9, 2008, among NETREIT, A CALIFORNIA CORPORATION, whose
address is 365 S. RANCHO SANTA FE ROAD, SUITE 300, SAN MARCOS, CA 92078 (“Grantor”); MILE HIGH
BANKS, whose address is DTC BRANCH, 8400 E. CRESCENT PKWY #150, GREENWOOD VILLAGE, CO 80111
(referred to below sometimes as “Lender” and sometimes as “Beneficiary”); and the Public Trustee
of EL PASO COUNTY County, Colorado (referred to below as “Trustee”).

CONVEYANCE AND GRANT. For valuable consideration, Grantor hereby irrevocably grants, transfers and
assigns to Trustee for the benefit of Lender as Beneficiary all of Grantor’s right, title, and
interest in and to the following described real property, together with all existing or
subsequently erected or affixed buildings, improvements and fixtures; all easements, rights of
way, and appurtenances; all water, water rights and ditch rights (including stock in utilities
with ditch or irrigation rights); and all other rights, royalties, and profits relating to the
real property, including without limitation all minerals, oil, gas, geothermal and similar
matters, (the “Real
Property”) located in EL PASO COUNTY County, State of Colorado:

CONDOMINIUM UNITS 1, 2, 3, AND 4, CHAPEL HILLS EXECUTIVE OFFICE CONDOMINIUMS, ACCORDING TO THE
DECLARATION THEREOF FILED FOR RECORD IN THE RECORDS OF THE OFFICE OF THE CLERK AND RECORDER OF
EL PASO COUNTY, STATE OF COLORADO ON MARCH 13, 2001 UNDER RECEPTION NO. 201030430, AND AS
DEFINED AND DESCRIBED IN THE CONDOMINIUM MAPS FOR CHAPEL HILLS EXECUTIVE OFFICE CONDOMINIUMS
RECORDED ON MARCH 13, 2001 UNDER RECEPTION NO. 201030429 AND NOVEMBER 29, 2001 UNDER RECEPTION
NO. 201174298, IN SAID RECORDS, COUNTY OF EL PASO, STATE OF COLORADO.

The Real Property or its address is commonly known
as 1271, 1277, 1283, AND 1295 KELLY JOHNSON BOULEVARD, COLORADO SPRINGS, CO 80920.

CROSS-COLLATERALIZATION. In addition to the Note, this Deed of Trust secures all obligations,
debts and liabilities, plus interest thereon, of Grantor to Lender, or any one or more of them, as
well as all claims by Lender against Grantor or any one or more of them, whether now existing or
hereafter arising, whether related or unrelated to the purpose of the Note, whether voluntary or
otherwise, whether due or not due, direct or indirect, determined or undetermined, absolute or
contingent, liquidated or unliquidated, whether Grantor may be liable individually or jointly with
others, whether obligated as guarantor, surety, accommodation party or otherwise, and whether
recovery upon such amounts may be or hereafter may become barred by any statute of limitations,
and whether the obligation to repay such amounts may be or hereafter may become otherwise
unenforceable.

REVOLVING LINE OF CREDIT. This Deed of Trust secures the Indebtedness including, without
limitation, a revolving line of credit, which obligates Lender to make advances to Grantor so long
as Grantor complies with all the terms of the Note.

Grantor presently assigns to Lender (also known as Beneficiary in this Deed of Trust) all of
Grantor’s right, title, and interest in and to all present and future leases of the Property and
all Rents from the Property. In addition, Grantor grants to Lender a Uniform Commercial Code
security interest in the Personal Property and Rents.

THIS DEED OF TRUST, INCLUDING THE ASSIGNMENT OF RENTS AND THE SECURITY INTEREST IN THE RENTS AND
PERSONAL PROPERTY, IS GIVEN TO SECURE (A) PAYMENT OF THE INDEBTEDNESS AND (B) PERFORMANCE OF ANY
AND ALL OBLIGATIONS UNDER THE NOTE, THE RELATED DOCUMENTS, AND THIS DEED OF TRUST. THIS DEED OF
TRUST IS GIVEN AND ACCEPTED ON THE FOLLOWING TERMS:

PAYMENT AND PERFORMANCE. Except as otherwise provided in this Deed of Trust, Grantor shall pay to
Lender all amounts secured by this Deed of Trust as they become due, and shall strictly and in a
timely manner perform all of Grantor’s obligations under the Note, this Deed of Trust, and the
Related Documents.

POSSESSION AND MAINTENANCE OF THE PROPERTY. Grantor agrees that Grantor’s possession and use of
the Property shall be governed by the following provisions:

Possession and Use. Until the occurrence of an Event of Default, Grantor may (1) remain in
possession and control of the Property; (2) use, operate or manage the Property; and (3)
collect the Rents from the Property.

Duty to Maintain. Grantor shall maintain the Property in tenantable condition and promptly
perform all repairs, replacements, and maintenance necessary to preserve its value.

Compliance With Environmental Laws. Grantor represents and warrants to Lender that: (1) During
the period of Grantor’s ownership of the Property, there has been no use, generation,
manufacture, storage, treatment, disposal, release or threatened release of any Hazardous
Substance by any person on, under, about or from the Property; (2) Grantor has no knowledge of,
or reason to believe that there has been, except as previously disclosed to and acknowledged by
Lender in writing, (a) any breach or violation of any Environmental Laws, (b) any use,
generation, manufacture, storage, treatment, disposal, release or threatened release of any
Hazardous Substance on, under, about or from the Property by any prior owners or occupants of
the Property, or (c) any actual or threatened litigation or claims of any kind by any person
relating to such matters; and (3) Except as previously disclosed to and acknowledged by Lender
in writing, (a) neither Grantor nor any tenant, contractor, agent or other authorized user of
the Property shall use, generate, manufacture, store, treat, dispose of or release any
Hazardous Substance on, under, about or from the Property; and (b) any such activity shall be
conducted in compliance with all applicable federal, state, and local laws, regulations and
ordinances, including without limitation all Environmental Laws. Grantor authorizes Lender and
its agents to enter upon the Property to make such inspections and tests, at Grantor’s expense,
as Lender may deem appropriate to determine compliance of the Property with this section of the Deed of Trust.

 

 

 

					
	 
	 	DEED OF TRUST	 	 
	Loan No: 05500412-10
	 	(Continued)
	 	Page 2

Any inspections or
tests made by Lender shall be for Lender’s purposes only and shall not be construed to create
any responsibility or liability on the part of Lender to Grantor or to any other person. The
representations and warranties contained herein are based on Grantor’s due diligence in
investigating the Property for Hazardous Substances. Grantor hereby (1) releases and waives any
future claims against Lender for indemnity or contribution in the event Grantor becomes liable
for cleanup or other costs under any such laws; and (2) agrees to indemnify, defend, and hold
harmless Lender against any and all claims, losses, liabilities, damages, penalties, and
expenses which Lender may directly or indirectly sustain or suffer resulting from a breach of
this section of the Deed of Trust or as a consequence of any use, generation, manufacture,
storage, disposal, release or threatened release occurring prior to Grantor’s ownership or
interest in the Property, whether or not the same was or should have been known to Grantor. The
provisions of this section of the Deed of Trust, including the obligation to indemnify and
defend, shall survive the payment of the Indebtedness and the satisfaction and reconveyance of
the lien of this Deed of Trust and shall not be affected by Lender’s acquisition of any
interest in the Property, whether by foreclosure or otherwise.

Nuisance, Waste. Grantor shall not cause, conduct or permit any nuisance nor commit, permit, or
suffer any stripping of or waste on or to the Property or any portion of the Property. Without
limiting the generality of the foregoing, Grantor will not remove, or grant to any other party
the right to remove, any timber, minerals (including oil and gas), coal, clay, scoria, soil,
gravel or rock products without Lender’s prior written consent.

Removal of Improvements. Grantor shall not demolish or remove any Improvements from the Real
Property without Lender’s prior written consent. As a condition to the removal of any
Improvements, Lender may require Grantor to make arrangements satisfactory to Lender to replace
such Improvements with Improvements of at least equal value.

Lender’s Right to Enter. Lender and Lender’s agents and representatives may enter upon the Real
Property at all reasonable times to attend to Lender’s interests and to inspect the Real
Property for purposes of Grantor’s compliance with the terms and conditions of this Deed of
Trust.

Compliance with Governmental Requirements. Grantor shall promptly comply with all laws,
ordinances, and regulations, now or hereafter in effect, of all governmental authorities
applicable to the use or occupancy of the Property, including without limitation, the Americans
With Disabilities Act. Grantor may contest in good faith any such law, ordinance, or regulation
and withhold compliance during any proceeding, including appropriate appeals, so long as
Grantor has notified Lender in writing prior to doing so and so long as, in Lender’s sole
opinion, Lender’s interests in the Property are not jeopardized. Lender may require Grantor to
post adequate security or a surety bond, reasonably satisfactory to Lender, to protect Lender’s
interest.

Duty to Protect. Grantor agrees neither to abandon or leave unattended the Property. Grantor
shall do all other acts, in addition to those acts set forth above in this section, which from
the character and use of the Property are reasonably necessary to protect and preserve the
Property.

TAXES AND LIENS. The following provisions relating to the taxes and liens on the Property are part
of this Deed of Trust:

Payment. Grantor shall pay when due (and in all events prior to delinquency) all taxes, special
taxes, assessments, charges (including water and sewer), fines and impositions levied against
or on account of the Property, and shall pay when due all claims for work done on or for
services rendered or material furnished to the Property. Grantor shall maintain the Property
free of all liens having priority over or equal to the interest of Lender under this Deed of
Trust, except for the lien of taxes and assessments not due and except as otherwise provided in
this Deed of Trust.

Right to Contest. Grantor may withhold payment of any tax, assessment, or claim in connection
with a good faith dispute over the obligation to pay, so long as Lender’s interest in the
Property is not jeopardized. If a lien arises or is filed as a result of nonpayment, Grantor
shall within fifteen (15) days after the lien arises or, if a lien is filed, within fifteen
(15) days after Grantor has notice of the filing, secure the discharge of the lien, or if
requested by Lender, deposit with Lender cash or a sufficient corporate surety bond or other
security satisfactory to Lender in an amount sufficient to discharge the lien plus any costs
and attorneys’ fees, or other charges that could accrue as a result of a foreclosure or sale
under the lien. In any contest, Grantor shall defend itself and Lender and shall satisfy any
adverse judgment before enforcement against the Property. Grantor shall name Lender as an
additional obligee under any surety bond furnished in the contest proceedings.

Evidence of Payment. Grantor shall upon demand furnish to Lender satisfactory evidence of
payment of the taxes or assessments and shall authorize the appropriate governmental official
to deliver to Lender at any time a written statement of the taxes and assessments against the
Property.

Notice of Construction. Grantor shall notify Lender at least fifteen (15) days before any work
is commenced, any services are furnished, or any materials are supplied to the Property, if any
mechanic’s lien, materialmen’s lien, or other lien could be asserted on account of the work,
services, or materials. Grantor  will  upon request of Lender furnish to Lender advance
assurances satisfactory to Lender that Grantor can and will pay the cost of such improvements.

PROPERTY DAMAGE INSURANCE. The following provisions relating to insuring the Property are a part
of this Deed of Trust.

Maintenance of Insurance. Grantor shall procure and maintain policies of fire insurance with
standard extended coverage endorsements on a replacement basis for the full insurable value
covering all Improvements on the Real Property in an amount sufficient to avoid application of
any coinsurance clause, and with a standard mortgagee clause in favor of Lender. Grantor shall
also procure and maintain comprehensive general liability insurance in such coverage amounts as
Lender may request with Trustee and Lender being named as additional insureds in such liability
insurance policies. Additionally, Grantor shall maintain such other insurance, including but
not limited to hazard, business interruption, and boiler insurance, as Lender may reasonably
require. Policies shall be written in form, amounts, coverages and basis reasonably acceptable
to Lender and issued by a company or companies reasonably acceptable to Lender. Grantor, upon
request of Lender, will deliver to Lender from time to time the policies or certificates of
insurance in form satisfactory to Lender, including stipulations that coverages will not be
cancelled or diminished without at least ten (10) days prior written notice to Lender. Each
insurance policy also shall include an endorsement providing that coverage in favor of Lender
will not be impaired in any way by any act, omission or default of Grantor or any other person.
Should the Real Property be located in an area designated by the Director of the Federal
Emergency Management Agency as a special flood hazard area, Grantor agrees to obtain and
maintain Federal Flood Insurance, if available, within 45 days after notice is given by Lender
that the Property is located in a special flood hazard area, for the full unpaid principal
balance of the loan and any prior liens on the property securing the loan, up to the maximum
policy limits set under the National Flood Insurance Program, or as otherwise required by
Lender, and to maintain such insurance for the term of the loan.

Application of Proceeds. Grantor shall promptly notify Lender of any loss or damage to the
Property. Lender may make proof of loss if Grantor fails to do so within fifteen (15) days of
the casualty. Whether or not Lender’s security is impaired, Lender may, at Lender’s election,
receive and retain the proceeds of any insurance and apply the proceeds to the reduction of the
Indebtedness, payment of any lien affecting the Property, or the restoration and repair of the
Property. If Lender elects to apply the proceeds to restoration and repair, Grantor shall
repair or replace the damaged or destroyed Improvements in a manner satisfactory to Lender.
Lender shall, upon satisfactory proof of such expenditure, pay or reimburse Grantor from the
proceeds for the reasonable cost of repair or restoration if Grantor is not in default under
this Deed of Trust. Any proceeds which have not been disbursed within 180 days after their
receipt and which Lender has not committed to the repair or restoration of the Property shall be
used first to pay any amount owing to Lender under this Deed of Trust, then to pay accrued
interest, and the remainder, if any, shall be applied to the principal balance of the
Indebtedness. If Lender holds any proceeds after payment in full of the Indebtedness, such
proceeds shall be paid to Grantor as Grantor’s interests may appear.

Grantor’s Report on Insurance. Upon request of Lender, however not more than once a year.
Grantor shall furnish to Lender a report on each existing policy of insurance showing: (1) the
name of the insurer; (2) the risks insured; (3) the amount of the policy; (4) the property
insured, the then current replacement value of such property, and the manner of determining
that value; and (5) the expiration date of the policy. Grantor shall, upon request of Lender,
have an independent appraiser satisfactory to Lender determine the cash value replacement cost
of the Property.

 

 

 

					
	 
	 	DEED OF TRUST	 	 
	Loan No: 05500412-10
	 	(Continued)
	 	Page 3

LENDER’S EXPENDITURES. If any action or proceeding is commenced that would materially affect
Lender’s interest in the Property or if Grantor fails to comply with any provision of this Deed of
Trust or any Related Documents, including but not limited to Grantor’s failure to discharge or pay
when due any amounts Grantor is required to discharge or pay under this Deed of Trust or any
Related Documents, Lender on Grantor’s behalf may (but shall not be obligated to) take any action
that Lender deems appropriate, including but not limited to discharging or paying all taxes,
liens, security interests, encumbrances and other claims, at any time levied or placed on the
Property and paying all costs for insuring, maintaining and preserving the Property. All such
expenditures incurred or paid by Lender for such purposes will then bear interest at the rate
charged under the Note from the date incurred or paid by Lender to the date of repayment by
Grantor. All such expenses will become a part of the  Indebtedness and, at Lender’s option, will
(A) be payable on demand; (B) be added to the  balance of the Note and be apportioned among and be
payable with any installment payments to become due during either (1) the term of any applicable
insurance policy; or (2) the remaining term of the Note; or (C) be treated as a balloon payment
which will be due and payable at the Note’s maturity. The Deed of Trust also will secure payment
of these amounts. Such right shall be in addition to all other rights and remedies to which Lender
may be entitled upon Default.

WARRANTY; DEFENSE OF TITLE. The following provisions relating to ownership of the Property are a
part of this Deed of Trust:

Title. Grantor warrants that: (a) Grantor holds good and marketable title of record to the
Property in fee simple, free and clear of all liens and encumbrances other than those set forth
in the Real Property description or in any title insurance policy, title report, or final title
opinion issued in favor of, and accepted by, Lender in connection with this Deed of Trust, and
(b) Grantor has the full right, power, and authority to execute and deliver this Deed of Trust
to Lender.

Defense of Title. Subject to the exception in the paragraph above, Grantor warrants and will
forever defend the  title to the Property against the lawful claims of all persons. In the
event any action or proceeding is commenced that questions Grantor’s title or the interest of
Trustee or Lender under this Deed of Trust, Grantor shall defend the action at Grantor’s
expense. Grantor may be the nominal party in such proceeding, but Lender shall be entitled to
participate in the proceeding and to be represented in the proceeding by counsel of Lender’s
own choice, and Grantor will deliver, or cause to be delivered, to Lender such instruments as
Lender may request from time to time to permit such participation.

Compliance With Laws. Grantor warrants that the Property and Grantor’s use of the Property
complies with all existing applicable laws, ordinances, and regulations of governmental
authorities.

Survival of Representations and Warranties. All representations, warranties, and agreements
made by Grantor in this Deed of Trust shall survive the execution and delivery of this Deed of
Trust, shall be continuing in nature, and shall remain in full force and effect until such time
as Grantor’s Indebtedness shall be paid in full.

CONDEMNATION. The following provisions relating to condemnation proceedings are a part of this
Deed of Trust:

Proceedings. If any proceeding in condemnation is filed, Grantor shall promptly notify Lender
in writing, and Grantor shall promptly take such steps as may be necessary to defend the action
and obtain the award. Grantor may be the nominal party in such proceeding, but Lender shall be
entitled to participate in the proceeding and to be represented in the proceeding by counsel of
its own choice, and Grantor will deliver or cause to be delivered to Lender such instruments
and documentation as may be requested by Lender from time to time to permit such participation.

Application of Net Proceeds. If all or any part of the Property is condemned by eminent domain
proceedings or by any proceeding or purchase in lieu of condemnation, Lender may at its
election require that all or any portion of the net proceeds of the award be applied to the
Indebtedness or the repair or restoration of the  Property. The net proceeds of the award shall
mean the award after payment of all reasonable costs, expenses, and attorneys’ fees incurred by
Trustee or Lender in connection with the condemnation.

IMPOSITION OF TAXES, FEES AND CHARGES BY GOVERNMENTAL AUTHORITIES. The following provisions
relating to governmental taxes, fees and charges are a part of this Deed of Trust:

Current Taxes, Fees and Charges. Upon request by Lender, Grantor shall execute such documents in
addition to this Deed of Trust and take whatever other action is requested by Lender to perfect
and continue Lender’s lien on the Real Property. Grantor shall reimburse Lender for all taxes,
as described below, together with all expenses incurred in recording, perfecting or continuing
this Deed of Trust, including without limitation all taxes, fees, documentary stamps, and other
charges for recording or registering this Deed of Trust.

Taxes.
The following shall constitute taxes to which this section applies: (1) a specific tax
upon this type of Deed of Trust or upon all or any part of the Indebtedness secured by this
Deed of Trust; (2) a specific tax on Grantor which Grantor is authorized or required to deduct
from payments on the Indebtedness secured by this type of Deed of Trust; (3) a tax on this type
of Deed of Trust chargeable against the Lender or the holder of the Note; and (4) a specific
tax on all or any portion of the Indebtedness or on payments of principal and interest made by
Grantor.

Subsequent Taxes. If any tax to which this section applies is enacted subsequent to the date
of this Deed of Trust, this event shall have the same effect as an Event of Default, and
Lender may exercise any or all of its available remedies for an Event of Default as provided
below unless Grantor either (1) pays the tax before it becomes delinquent, or (2) contests the
tax as provided above in the Taxes and Liens section and deposits with Lender cash or a
sufficient corporate surety bond or other security satisfactory to Lender.

SECURITY AGREEMENT; FINANCING STATEMENTS. The following provisions relating to this Deed of Trust
as a security agreement are a part of this Deed of Trust:

Security Agreement. This instrument shall constitute a Security Agreement to the extent any of
the Property constitutes fixtures, and Lender shall have all of the rights of a secured party
under the Uniform Commercial Code as amended from time to time.

Security Interest. Upon request by Lender,
 Grantor shall take whatever action is requested by
Lender to perfect and continue Lender’s security interest in the Rents and Personal Property.
In addition to recording this Deed of Trust in the real property records, Lender may, at any
time and without further authorization from Grantor, file executed counterparts, copies or
reproductions of this Deed of Trust as a financing statement. Grantor shall reimburse Lender
for all expenses incurred in perfecting or continuing this security interest. Upon default,
Grantor shall not remove, sever or detach the Personal Property from the Property. Upon
default, Grantor shall assemble any Personal Property not affixed to the Property in a manner
and at a place reasonably convenient to Grantor and Lender and make it available to Lender
within three (3) days after receipt of written demand from Lender to the extent permitted by
applicable law.

Addresses. The mailing addresses of Grantor (debtor) and Lender (secured party) from which
information concerning the security interest granted by this Deed of Trust may be obtained
(each as required by the Uniform Commercial Code) are as stated on the first page of this Deed
of Trust.

FURTHER ASSURANCES; ATTORNEY-IN-FACT. The following provisions relating to further assurances and
attorney-in-fact are a part of this Deed of Trust:

Further Assurances. At any time, and from time to time, upon request of Lender, Grantor will
make, execute and deliver, or will cause to be made, executed or delivered, to Lender or to
Lender’s designee, and when requested by Lender, cause to be filed, recorded, refiled, or
rerecorded, as the case may be, at such times and in such offices and places as Lender may deem
appropriate, any and all such mortgages, deeds of trust, security deeds, security agreements,
financing statements, continuation statements, instruments of further assurance, certificates,
and other documents as may, in the sole opinion of Lender, be necessary or desirable in order
to effectuate, complete, perfect, continue, or preserve (1) Grantor’s obligations under the
Note, this Deed of Trust, and the Related Documents, and (2) the liens and security interests
created by this Deed of Trust as first and prior liens on the Property, whether now owned or
hereafter acquired by Grantor. Unless prohibited by law or Lender agrees to the contrary in
writing, Grantor shall reimburse Lender for all costs and expenses incurred in connection with
the matters referred to in this paragraph.

 

 

 

					
	 
	 	DEED OF TRUST	 	 
	Loan No: 05500412-10
	 	(Continued)
	 	Page 4

Attorney
-in- Fact. If Grantor fails to do any of the things referred to in the preceding
paragraph, Lender may do so for and in the name of Grantor and at Grantor’s expense. For such
purposes, Grantor hereby irrevocably appoints Lender as Grantor’s attorney-in-fact for the
purpose of making, executing, delivering, filing, recording, and doing all other things as may
be necessary or desirable, in Lender’s sole opinion, to accomplish the matters referred to in
the preceding paragraph.

FULL PERFORMANCE. Upon the full performance of all the obligations under the Note and this Deed of
Trust, Trustee may, upon production of documents and fees as required under applicable law,
release this Deed of Trust, and such release shall constitute a release of the lien for all such
additional sums and expenditures made pursuant to this Deed of Trust. Lender agrees to cooperate
with Grantor in obtaining such release and releasing the other
collateral securing the
Indebtedness. Any release fees required by law shall be paid by Grantor, if permitted by
applicable law.

EVENTS OF DEFAULT. Each of the following, at Lender’s option, shall constitute an Event of
Default under this Deed of Trust:

Payment Default. Grantor fails to make any payment
when due under the Indebtedness.

Other Defaults. Grantor fails to comply with or to perform any other term, obligation, covenant
or condition contained in this Deed of Trust or in any of the Related Documents or to comply
with or to perform any term, obligation, covenant or condition contained in any other agreement
between Lender and Grantor.

Compliance Default. Failure to comply with any other term, obligation, covenant or condition
contained in this Deed of Trust, the Note or in any of the Related Documents.

Default on Other Payments. Failure of Grantor within the time required by this Deed of Trust to
make any payment for taxes or insurance, or any other payment necessary to prevent filing of or
to effect discharge of any lien.

Default in Favor of Third Parties. Should Grantor default under any loan, extension of credit,
security agreement, purchase or sales agreement, or any other agreement, in favor of any other
creditor or person that may materially affect any of Grantor’s property or Grantor’s ability to
repay the Indebtedness or perform their respective obligations under this Deed of Trust or any
of the Related Documents.

False Statements. Any warranty, representation or statement made or furnished to Lender by
Grantor or on Grantor’s behalf under this Deed of Trust or the Related Documents is false or
misleading in any material respect, either now or at the time made or furnished or becomes
false or misleading at any time thereafter.

Defective Collateralization. This Deed of Trust or any of the Related Documents ceases to be in
full force and effect (including failure of any collateral document to create a valid and
perfected security interest or lien) at any time and for any reason.

Insolvency. The dissolution or termination of Grantor’s existence as a going business, the
insolvency of Grantor, the appointment of a receiver for any part of Grantor’s property, any
assignment for the benefit of creditors, any type of creditor workout, or the commencement of
any proceeding under any bankruptcy or insolvency laws by or against Grantor.

Creditor
or Forfeiture Proceedings. Commencement of foreclosure or forfeiture proceedings,
whether by judicial proceeding, self-help, repossession or any other method, by any creditor of
Grantor or by any governmental agency against any property securing the Indebtedness. This
includes a garnishment of any of Grantor’s accounts, including deposit accounts, with Lender.
However, this Event of Default shall not apply if there is a good faith dispute by Grantor as
to the validity or reasonableness of the claim which is the basis of the creditor or forfeiture
proceeding and if Grantor gives Lender written notice of the creditor or forfeiture proceeding
and deposits with Lender monies or a surety bond for the creditor or forfeiture proceeding, in
an amount determined by Lender, in its sole discretion, as being an adequate reserve or bond
for the dispute.

Breach of Other Agreement. Any breach by Grantor under the terms of any other agreement
between Grantor and Lender that is not remedied within any grace period provided therein,
including without limitation any agreement concerning any indebtedness or other obligation of
Grantor to Lender, whether existing now or later.

Events
Affecting Guarantor. Any of the preceding events occurs with
respect to any guarantor, endorser, surety, or accommodation party of any of the
Indebtedness or any guarantor, endorser, surety, or accommodation party dies or becomes
incompetent, or revokes or disputes the validity of, or liability under, any Guaranty of the
Indebtedness.

Adverse Change. A material adverse change occurs in Grantor’s financial condition, or Lender
believes the prospect of payment or performance of the Indebtedness is impaired.

Insecurity.
Lender in good faith believes itself insecure.

RIGHTS
AND REMEDIES ON DEFAULT. If an Event of Default occurs under this Deed of Trust, at any
time thereafter, Trustee or Lender may exercise any one or more of the following rights and
remedies:

Election
of Remedies. Election by Lender to pursue any remedy shall not exclude pursuit of any
other remedy, and an election to make expenditures or to take action to perform an obligation
of Grantor under this Deed of Trust, after Grantor’s failure to
perform, shall not affect
Lender’s right to declare a default and exercise its remedies.

Accelerate Indebtedness. Lender shall have the right at its option without notice to Grantor
to declare the entire Indebtedness immediately due and payable, including any prepayment
penalty which Grantor would be required to pay.

Foreclosure.
Lender shall have the right to cause all or any part of the Real Property, and
Personal Property, if Lender decides to proceed against it as if it were real property, to be
sold by the Trustee according to the laws of the State of Colorado as respects foreclosures
against real property. The Trustee shall give notice in accordance with the laws of
Colorado. The Trustee shall apply the proceeds of the sale in the following order: (a)
to all costs and expenses of the sale, including but not limited to Trustee’s fees, attorneys’
fees, and the cost of title evidence; (b) to all sums secured by
this Deed of Trust; and
(c) the excess, if any, to the person or persons legally entitled to the excess.

UCC
Remedies. With respect to all or any part of the Personal Property, Lender shall have
all the rights and remedies of a
secured party under the Uniform Commercial Code.

Collect
Rents. Lender shall have the right, without notice to Grantor to take possession of
and manage the Property and collect the Rents, including amounts past due and unpaid, and
apply the net proceeds, over and above Lender’s costs, against
the Indebtedness. In furtherance of this right, Lender may require any tenant or other user of the Property to make
payments of rent or use fees directly to Lender. If the Rents are collected by Lender, then
Grantor irrevocably designates Lender as Grantor’s attorney-in-fact to endorse instruments received
in payment thereof in the name of Grantor and to negotiate the same
and collect the proceeds. Payments by tenants or other users to Lender in response to Lender’s
demand shall satisfy the obligations for which the payments are made, whether or not any proper grounds for the demand existed.
Lender may exercise its rights under this subparagraph either in person, by agent, or through a
receiver.

 

 

 

					
	 	 	 	 	 
	 
	 	DEED OF TRUST	 	 
	Loan No: 05500412-10
	 	(Continued)
	 	Page 5

Appoint Receiver. Lender shall have the right to have a receiver appointed to take possession
of all or any part of the Property, with the power to protect and preserve the Property, to
operate the Property preceding foreclosure or sale, and to collect the Rents from the
Property and apply the proceeds, over and above the cost of the receivership, against the
Indebtedness. The receiver may serve without bond if permitted by law. Lender’s right to the
appointment of a receiver shall exist whether or not the apparent value of the Property
exceeds the Indebtedness by a substantial amount. Employment by Lender shall not disqualify a
person from serving as a receiver. Receiver may be appointed by a court of competent
jurisdiction upon ex parte application and without notice, notice being expressly waived.

Tenancy at Sufferance. If Grantor remains in possession of the Property after the Property is
sold as provided above or Lender otherwise becomes entitled to possession of the Property upon
default of Grantor, Grantor shall become a tenant at sufferance of Lender or the purchaser of
the Property and shall, at Lender’s option, either (1) pay a reasonable rental for the use of
the Property, or (2) vacate the Property immediately upon the demand of Lender.

Other
Remedies. Trustee or Lender shall have any other right or remedy provided in this Deed
of Trust or the Note or available at law or in equity.

Sale of the Property. In exercising its rights and remedies, Lender shall be free to designate
on or before it files a notice of election and demand with the Trustee, that the Trustee sell
all or any part of the Property together or separately, in one sale or by separate sales.
Lender shall be entitled to bid at any public sale on all or any portion of the Property. Upon
any sale of the Property, whether made under a power of sale granted in this Deed of Trust or
pursuant to judicial proceedings, if the holder of the Note is a purchaser at such sale, it
shall be entitled to use and apply all, or any portion of, the Indebtedness for or in
settlement or payment of all, or any portion of, the purchase price of the Property purchased,
and, in such case, this Deed of Trust, the Note, and any documents evidencing expenditures
secured by this Deed of Trust shall be presented to the person
conducting the sale in order
that the amount of Indebtedness so used or applied may be credited thereon as having been
paid.

Attorneys’ Fees; Expenses. If Lender forecloses or institutes any suit or action to enforce any
of the terms of this Deed of Trust, Lender shall be entitled to recover such sum as the court
may adjudge reasonable as attorneys’ fees at trial and upon any appeal. Whether or not any
court action is involved, and to the extent not prohibited by law, all reasonable expenses
Lender incurs that in Lender’s opinion are necessary at any time
for the protection of its
interest or the enforcement of its rights shall become a part of the Indebtedness payable on
demand and shall bear interest at the Note rate from the date of the expenditure until repaid.
Expenses covered by this paragraph include, without limitation, however subject to any limits
under applicable law, Lender’s attorneys’ fees whether or not there is a lawsuit, including
attorneys’ fees and expenses for bankruptcy proceedings (including efforts to modify or vacate
any automatic stay or injunction), appeals, and any anticipated post-judgment collection
services, the cost of searching records, obtaining title reports (including foreclosure
reports), surveyors’ reports, and appraisal fees, title
insurance, and fees for the Trustee, to
the extent permitted by applicable law. Grantor also will pay any court costs, in addition to
all other sums provided by law.

Rights of Trustee. To the extent permitted by applicable law, Trustee shall have all of the
rights and duties of Lender as set forth in this section.

NOTICES. Any notice required to be given under this Deed of Trust, including without limitation
any notice of default and any notice of sale shall be given in writing, and shall be effective
when actually delivered, when actually received by telefacsimile (unless otherwise required by
law), when deposited with a nationally recognized overnight courier, or, if mailed, when deposited
in the United States mail, as first class, certified or registered mail postage prepaid, directed
to the addresses shown near the beginning of this Deed of Trust. All copies of notices of
foreclosure from the holder of any lien which has priority over this Deed of Trust. shall be sent
to Lender’s address, as shown near the beginning of this Deed of Trust. Any party may change its
address for notices under this Deed of Trust by giving formal written notice to the other parties,
specifying that the purpose of the notice is to change the party’s address. For notice purposes,
Grantor agrees to keep Lender informed at all times of Grantor’s current address. Unless otherwise
provided or required by law, if there is more than one Grantor, any notice given by Lender to any
Grantor is deemed to be notice given to all Grantors.

SUBSEQUENT TRANSACTIONS INVOLVING REAL ESTATE. Grantor shall not allow or permit the real property
described in this document to become encumbered by any lien, security interest, or charge, other
than the encumbrance created by this Deed of Trust, without the prior written consent of the
lender. This includes any and all security interests, even if junior in right to the security
interests granted under this Deed of Trust.

 MISCELLANEOUS PROVISIONS. The following miscellaneous
provisions are a part of this Deed of Trust:

Amendments. This Deed of Trust, together with any Related Documents, constitutes the entire
understanding and agreement of the parties as to the matters set forth in this Deed of Trust.
No alteration of or amendment to this Deed of Trust shall be effective unless given in writing
and signed by the party or parties sought to be charged or bound by the alteration or
amendment.

Annual
Reports. If the Property is used for purposes other than Grantor’s residence, Grantor
shall furnish to Lender, upon request, a certified statement of net operating income received
from the Property during Grantor’s previous fiscal year in such form and detail as Lender shall
require. “Net operating income” shall mean all cash receipts from the Property less all cash
expenditures made in connection with the operation of the Property.

Caption
Headings. Caption headings in this Deed of Trust are for convenience purposes only and
are not to be used to interpret or define the provisions of this Deed of Trust.

Merger. There shall be no merger of the interest or estate created by this Deed of Trust with
any other interest or estate in the Property at any time held by or for the benefit of Lender
in any capacity, without the written consent of Lender.

Governing Law. This Deed of Trust will be governed by federal law applicable to Lender and, to
the extent not preempted by federal law, the laws of the State of Colorado without regard to
its conflicts of law provisions. This Deed of Trust has been accepted by Lender in the State of
Colorado.

Choice of Venue. If there is a lawsuit, Grantor agrees upon Lender’s request to submit to the
jurisdiction of the courts of BOULDER County, State of Colorado.

No Waiver by Lender. Lender shall not be deemed to have waived any rights under this Deed of
Trust unless such waiver is given in writing and signed by Lender. No delay or omission on the
part of Lender in exercising any right shall operate as a waiver of such right or any other
right. A waiver by Lender of a provision of this Deed of Trust shall not prejudice or
constitute a waiver of Lender’s right otherwise to demand strict compliance with that provision
or any other provision of this Deed of Trust. No prior waiver by Lender, nor any course of
dealing between Lender and Grantor, shall constitute a waiver of any of Lender’s rights or of
any of Grantor’s obligations as to any future transactions. Whenever the consent of Lender is
required under this Deed of Trust, the granting of such consent by Lender in any instance shall
not constitute continuing consent to subsequent instances where such consent is required and in
all cases such consent may be granted or withheld in the sole discretion of Lender.

Severability. If a court of competent jurisdiction finds any provision of this Deed of Trust to
be illegal, invalid, or unenforceable as to any circumstance, that finding shall not make the
offending provision illegal, invalid, or unenforceable as to any other circumstance. If
feasible, the offending provision shall be considered modified so that it becomes legal, valid
and enforceable. If the offending provision cannot be so modified, it shall be considered
deleted from this Deed of Trust. Unless otherwise required by law, the illegality, invalidity,
or unenforceability of any provision of this Deed of Trust shall not affect the legality,
validity or enforceability of any other provision of this Deed of Trust.

 

 

 

					
	 	 	 	 	 
	 
	 	DEED OF TRUST	 	 
	Loan No: 05500412-10
	 	(Continued)
	 	Page 6

Successors and Assigns. Subject to any limitations stated in this Deed of Trust on transfer of
Grantor’s interest, this Deed of Trust shall be binding upon and inure to the benefit of the
parties, their successors and assigns. If ownership of the Property becomes vested in a person
other than Grantor, Lender, without notice to Grantor, may deal with Grantor’s successors with
reference to this Deed of Trust and the Indebtedness by way of forbearance or extension without
releasing Grantor from the obligations of this Deed of Trust or liability under the
Indebtedness.

Time is of the Essence. Time is of the essence in the performance of this Deed of Trust.

Waiver of Homestead Exemption. Grantor hereby releases and waives all rights and benefits of
the homestead exemption laws of the State of Colorado as to all Indebtedness secured by this
Deed of Trust.

DEFINITIONS. The following capitalized words and terms shall have the following meanings when
used in this Deed of Trust. Unless specifically stated to the contrary, all references to dollar
amounts shall mean amounts in lawful money of the United States of America. Words and terms used
in the singular shall include the plural, and the plural shall include the singular, as the
context may require. Words and terms not otherwise defined in this Deed of Trust shall have the
meanings attributed to such terms in the Uniform Commercial Code:

Beneficiary. The word “Beneficiary” means MILE HIGH BANKS, and its successors and assigns.

Borrower. The word “Borrower” means NETREIT, A CALIFORNIA CORPORATION and includes all
co-signers and co-makers signing the Note and all their successors and assigns.

Deed of Trust. The words “Deed of Trust” mean this Deed of Trust among Grantor, Lender, and
Trustee, and includes without limitation all assignment and security interest provisions
relating to the Personal Property and Rents.

Default. The word “Default” means the Default set forth in this Deed of Trust in the section
titled “Default”.

Environmental Laws. The words “Environmental Laws” mean any and all state, federal and local
statutes, regulations and ordinances relating to the protection of human health or the
environment, including without limitation the Comprehensive Environmental Response,
Compensation, and Liability Act of 1980, as amended, 42 U.S.C. Section 9601, et seq.
(“CERCLA”), the Superfund Amendments and Reauthorization Act of 1986, Pub. L. No. 99-499
(“SARA”), the Hazardous Materials Transportation Act, 49
U.S.C. Section 1801, et seq., the Resource Conservation and Recovery Act, 42 U.S.C. Section 6901, et seq., or other applicable
state or federal laws, rules, or regulations adopted pursuant thereto.

Event of Default. The words “Event of Default” mean any of the events of default set forth in
this Deed of Trust in the events of default section of this Deed of Trust.

Grantor. The word “Grantor” means NETREIT, A CALIFORNIA CORPORATION.

Guaranty. The word “Guaranty” means the guaranty from guarantor, endorser, surety, or
accommodation party to Lender, including without limitation a guaranty of all or part of the
Note.

Hazardous Substances. The words “Hazardous Substances” mean materials that, because of their
quantity, concentration or physical, chemical or infectious characteristics, may cause or pose
a present or potential hazard to human health or the environment when improperly used, treated,
stored, disposed of, generated, manufactured, transported or otherwise handled. The words
“Hazardous Substances” are used in their very broadest sense and include without limitation any
and all hazardous or toxic substances, materials or waste as defined by or listed under the
Environmental Laws. The term “Hazardous Substances” also Includes, without limitation,
petroleum and petroleum by-products or any fraction thereof and asbestos.

Improvements. The word
“Improvements” means all existing and future improvements, buildings,
structures, mobile homes, affixed on the Real Property, facilities, additions, replacements
and other construction on the Real Property.

Indebtedness. The word “Indebtedness” means all principal, interest, and other amounts, costs
and expenses payable under the Note or Related Documents, together with all renewals of,
extensions of, modifications of, consolidations of and substitutions for the Note or Related
Documents and any amounts expended or advanced by Lender to discharge Grantor’s obligations or
expenses incurred by Trustee or Lender to enforce Grantor’s obligations under this Deed of
Trust, together with interest on such amounts as provided in this Deed of Trust. Specifically,
without limitation, Indebtedness includes all amounts that may be indirectly secured by the Cross-Collateralization provision of this Deed
of Trust.

Lender. The word “Lender” means MILE HIGH BANKS, its successors and assigns.

Note. The word “Note”
means the promissory note dated July 9, 2008, in the original principal
amount of $6,597,500.00 from Grantor to Lender, together with all renewals of, extensions of,
modifications of, refinancings of, consolidations of, and substitutions for the promissory
note or agreement. The maturity date of the Note is July 9, 2011.

Personal Property. The words “Personal
Property” mean all equipment, fixtures, and other
articles of personal property now or hereafter owned by Grantor, and now or hereafter attached
or affixed to the Real Property; together with all accessions, parts, and additions to, all
replacements of, and all substitutions for, any of such property; and together with all
proceeds (including without limitation all insurance proceeds and refunds of premiums) from
any sale or other disposition of the Property.

Property. The word “Property” means
collectively the Real Property and the Personal Property.

Real Property. The words “Real Property” mean the real property, interests and rights, as
further described in this Deed of Trust.

Related Documents.
The words “Related Documents” mean all promissory notes, credit agreements,
loan agreements, environmental agreements, guaranties, security agreements, mortgages, deeds of
trust, security deeds, collateral mortgages, and all other instruments, agreements and
documents, whether now or hereafter existing, executed in connection with the Indebtedness.

Rents. The word “Rents” means all present and future rents, revenues, income, issues,
royalties, profits, and other benefits derived from the Property.

Trustee. The word “Trustee” means the Public Trustee of EL PASO COUNTY County, Colorado.

GRANTOR ACKNOWLEDGES HAVING READ ALL THE PROVISIONS OF THIS DEED OF TRUST, AND GRANTOR AGREES TO
ITS TERMS.

	 	 	 	 	 
	GRANTOR:	 	 
	 
	 	 	 	 
	NETREIT, A CALIFORNIA CORPORATION	 	 
	 
	 	 	 	 
	By:

	 	/s/ Kenneth W. Elsberry	 	 
	 

	 	 

KENNETH W. ELSBERRY, Secretary & CFO of
	 	 
	 

	 	 NETREIT, A CALIFORNIA CORPORATION	 	 

 

 

 

					
	 	 	 	 	 
	 
	 	DEED OF TRUST	 	 
	Loan No: 05500412-10
	 	(Continued)
	 	Page 7

CORPORATE ACKNOWLEDGEMENT

	 	 	 	 	 	 	 	 	 	 	 
	STATE OF Colorado

	 	 
	 	 	 	 	)	 	 	 
	 

	 	 	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 	)	 SS
	COUNTY OF El Paso

	 	 
	 	 	 	 	)	 	 	 
	 

	 	 	 	 	 	 	 	 	 	 

On this 9th day of July, 2008, before me, the undersigned Notary Public, personally appeared
KENNETH W. ELSBERRY, Secretary & CFO of NETREIT, A CALIFORNIA CORPORATION, and known to me to be an
authorized agent of the corporation that executed the Deed of Trust and acknowledged the Deed of
Trust to be the free and voluntary act and deed of the corporation, by authority of its Bylaws or
by resolution of its board of directors, for the uses and purposes therein mentioned, and on oath
stated that he or she is authorized to execute this Deed of Trust and in fact executed the Deed of
Trust on behalf of the corporation.

	 	 	 	 	 	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	By

	 	 
	 	 	 	 	 	Residing at	 	 	 	 
	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	Notary Public in and for the State of	 	 	 	 	 	My commission expires	 	 
	 

	 	 	 	 
	 	 	 	 	 	 	 	 

LASER PRO Lending, Ver. 5.40.00.003 Copr. Harland Financial Solutions, Inc. 1997, 2008.
 All Rights Reserved. — CO
I:\CFI\LPL\G01.FC TR-1533 PR-8

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