Document:

ex108barrettlkesmultifam

                                                                        EXHIBIT 10.8   Prepared by, and after recording  return to:   Jeremy M. McLean, Esquire  Troutman Sanders LLP  P.O. Box 1122  Richmond, VA 23218                        MULTIFAMILY DEED TO SECURE DEBT,                             ASSIGNMENT OF RENTS                           AND SECURITY AGREEMENT                                      GEORGIA                                   (Revised 5-5-2017)  

 

                                              Freddie Mac Loan No. 504021354                                                      The 1800 at Barrett Lakes                     MULTIFAMILY DEED TO SECURE DEBT,                           ASSIGNMENT OF RENTS                         AND SECURITY AGREEMENT                                   GEORGIA                                (Revised 5-5-2017)  THIS  MULTIFAMILY   DEED  TO SECURE   DEBT, ASSIGNMENT   OF RENTS  AND  SECURITY  AGREEMENT   ("Instrument") is made to be effective as of the 31st day of July,  2018, between STAR BARRETT LAKES,  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, as grantor ("Borrower"), and PNC  BANK, NATIONAL ASSOCIATION, a national banking association, whose address is 26901  Agoura Road, Suite 200, Calabasas Hills, California 91301, Attention: Loan Servicing Manager,  as grantee ("Lender"). Borrower's organizational identification number, if applicable, is  5608101.                                  RECITAL  Borrower is indebted to Lender in the principal amount of Forty Million Nine Hundred Ten  Thousand and 00/100 Dollars ($40,910,000.00), as evidenced by Borrower's Multifamily Note  payable to Lender, dated as of the date of this Instrument, and maturing on August 1, 2028  ("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 Documents, Borrower grants, conveys and assigns to Lender  and Lender's successors and assigns, with power of sale, the Mortgaged Property, including the   Land located in Cobb County, State of Georgia 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. As used in this Instrument, the term "Mortgaged Property" is synonymous   with the term "Secured Property," and the term "Lien" is synonymous with the term "security   interest and title."   Borrower covenants that Borrower is lawfully seized of the Mortgaged Property and has the   right, power and authority to grant, convey  and assign the Mortgaged Property, 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 (the "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.     Georgia   Multifamily Deed to Secure Debt, Assignment of Rents   and Security Agreement  

 

                         UNIFORM COVENANTS                                (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,        stove~, 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        them, that has or acquires jurisdiction over the Mortgaged Property, or the use, operation        or improvement of the Mortgaged Property, or over Borrower.     Georgia                                                           Pagel   Multifamily Deed to Secure Debt, Assignment of Rents   and Security Agreement  

 

      "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.        "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.   Georgia                                                                  Page3  Multifamily Deed to Secure Debt, Assignment of Rents  and Security Agreement  

 

     "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.               (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.               G)    All Rents and Leases.   Georgia                                                                  Page4  Multifamily Deed to Secure Debt, Assignment of Rents  and Security Agreement  

 

          (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.             (I)   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.       "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,   Georgia                                                           Pages  Multifamily Deed to Secure Debt, Assignment of Rents  and Security Agreement  

 

          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       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   Georgia                                                           Page6  Multifamily Deed to Secure Debt, Assignment of Rents  and Security Agreement  

 

          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.  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.   Georgia                                                           Page7  Multifamily Deed to Secure Debt, Assignment of Rents  and Security Agreement  

 

     (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                  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   Georgia                                                            Page8  Multifamily Deed to Secure Debt, Assignment of Rents  and Security Agreement  

 

                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 ofthis 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.             (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.   Georgia                                                            Page9  Multifamily Deed to Secure Debt, Assignment of Rents  and Security Agreement  

 

      (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.        ( 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    Georgia                                                                 Page 10   Multifamily Deed to Secure Debt, Assignment of Rents   and Security Agreement  

 

           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 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.   Georgia                                                                 Page 11  Multifamily Deed to Secure Debt, Assignment of Rents  and Security Agreement  

 

     (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             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 of2 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   Georgia                                                                 Page 12  Multifamily Deed to Secure Debt, Assignment of Rents  and Security Agreement  

 

           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       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   Georgia                                                           Page 13  Multifamily Deed to Secure Debt, Assignment of Rents  and Security Agreement  

 

     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       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   Georgia                                                           Page 14  Multifamily Deed to Secure Debt, Assigumeut of Rents  and Security Agreement  

 

     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              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).    Georgia                                                                 Page 15  Multifamily Deed to Secure Debt, Assignment of Rents  and Security Agreement  

 

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.    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 granted in this Instrument (and              Borrower appoints Lender as Borrower's agent and attorney-in-fact to exercise             such power of sale in the name and on behalf of Borrower) and any other             remedies permitted by Georgia law or provided in this Instrument 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 reasonable Attorneys' Fees and Costs and costs of documentary              evidence, abstracts and title reports.    Georgia                                                           Page 16   Multifamily Deed to Secure Debt, Assignment of Rents   and Security Agreement  

 

     (b)  Lender may sell and dispose of the Mortgaged Property at public auction, at the            usual place for conducting sales at the courthouse in the county where all or any            part of the Mortgaged Property is located, to the highest bidder for cash, first (a)            providing Borrower written notice of the initiation of proceedings to exercise the            power of sale in accordance with O.C.G.A. §44-14-162, and (b) advertising the            time, terms and place of such sale by publishing a notice of sale once a week for            four consecutive weeks (without regard to the actual number of days) in a            newspaper in which sheriff's advertisements are published in such county, all            other notice being waived by Borrower; and Lender may thereupon execute and            deliver to the purchaser a sufficient instrument of conveyance of the Mortgaged            Property in fee simple, which may contain recitals as to the happening of the            default upon which the execution of the power of sale granted by this Section            depends. The recitals in the instrument of conveyance will be presumptive            evidence that Lender duly complied with all preliminary acts prerequisite to the            sale and instrument of conveyance. Borrower constitutes and appoints Lender as            Borrower's agent and attorney-in-fact to make such recitals, sale and conveyance.            Borrower ratifies all of Lender's acts, as such attorney-in-fact, and Borrower            agrees that such recitals will be binding and conclusive upon Borrower and that            the conveyance to be made by Lender (and in the event of a deed in lieu of            foreclosure, then as to such conveyance) will be effectual to bar all right, title and            interest, equity of redemption, including all statutory redemption, homestead,            dower, curtsey and all other exemptions of Borrower, or its successors in interest,            in and to the Mortgaged Property.        (c)  The Mortgaged Property may be sold in one parcel and as an entirety, or in such            parcels, manner or order as Lender, in its discretion, may elect, and one or more            exercises of the powers granted in this Section will not extinguish or exhaust the            power unless the entire Mortgaged Property is sold or the Indebtedness is paid in            full, and Lender will collect the proceeds of such sale, applying such proceeds as            provided in this Section. In the event of a deficiency, Borrower will immediately            on demand from Lender pay such deficiency to Lender, subject to the provisions            of the Note limiting Borrower's personal liability for payment of the            Indebtedness. Borrower acknowledges that Lender may bid for and purchase the            Mortgaged Property at any foreclosure sale and will be entitled to apply all or any            part of the Indebtedness as a credit to the purchase price. Borrower covenants and            agrees that Lender will apply the proceeds of the sale in the following order: (i)            to all reasonable costs and expenses of the sale, including reasonable Attorneys'            Fees and Costs and costs of title evidence; (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 the excess. The power and agency granted in this            Section 31 are coupled with an interest, are irrevocable by death or otherwise and            are in addition to the remedies for collection of the Indebtedness as provided by            law.        (d)  If the Mortgaged Property is sold pursuant to this Section 31, Borrower, or any            person holding possession of the Mortgaged Property through Borrower, will            surrender possession of the Mortgaged Property to the purchaser at such sale on            demand. If possession is not surrendered on demand, Borrower or such person            will be a tenant holding over and may be dispossessed in accordance with Georgia            law.   Georgia                                                           Page 17  Multifamily Deed to Secure Debt, Assignment of Rents  and Security Agreement  

 

32.   Release. Upon payment  of the Indebtedness, Lender will cancel this Instrument.        Borrower will pay Lender's reasonable costs incurred in canceling this Instrument.   33.   Borrower's Waiver  Of Certain Rights. To th~ fullest extent permitted by law,        Borrower agrees that Borrower will not at any time insist upon, plead, claim or take the        benefit or advantage of any present or future law providing for any appraisement,        valuation, stay, extension or redemption, homestead, moratorium, reinstatement,        marshalling or forbearance, and Borrower, for Borrower, Borrower's heirs, devisees,        representatives, successors and assigns, and for any and all persons ever claiming any        interest in the Mortgaged Property, to the fullest extent permitted by law, waives and        releases all rights of redemption, valuation, appraisement, stay of execution,        reinstatement (including all rights under O.C.G.A. Section 44-14-85), notice of intention        to mature or declare due the whole of the Indebtedness, and all rights to a marshalling of        assets of Borrower, including the Mortgaged Property.   34.   Deed To Secure Debt. This conveyance is to be construed under the existing laws of the        State of Georgia as a deed passing title, and not as a mortgage, and is intended to secure        the payment of the Indebtedness.  35.   Assumption Not a Novation. Lender's acceptance ofan assumption of the obligations of        this Instrument and the Note, and the release of Borrower pursuant to Article VII of the        Loan Agreement or otherwise,  will not constitute a novation and will not affect the        priority of the Lien created by this Instrument.  36.   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  TIDS  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.   37.   Incorporation of Riders. The following Riders are attached to this Instrument:         [K]      Rider to Multifamily Security Instrument - Trade Names     Georgia                                                                 Page 18  Multifamily Deed to Secure Debt, Assignment of Rents   and Security Agreement  

 

38.   Attached Exhibits. The following Exhibits, if marked with an "X" in the space provided,        are attached to this Instrument:        [X]      Exhibit A    Description of the Land (required)         [X]     Exhibit B    Modifications to Instrument        D       Exhibit C    Ground Lease Description (if applicable)   IN WITNESS WHEREOF, Borrower has signed and delivered this Instrument or has caused this  Instrument to be signed and delivered by its duly authorized representative.               REMAINDER OF PAGE INTENTIONALLY LEFT BLANK    Georgia                                                                  Page 19  Multifamily Deed to Secure Debt, Assignment of Rents  and Security Agreement  

 

                                    BORROWER:                                       ST AR BARRETT LAKES, LLC, a Delaware                                         limited liability company                                       By: Steadfast Apartment Advisor, LLC, a                                          Delaware limited liability company, its                                          Manager                                            By: =~;=-,"-~-~Jj~l\~/'==--,..,,...ci\,.___ __ (SEAL)                                              Ella S. Neyland  V    =                                              President     Signed, sealed and delivered in the   presence of:    PrintName:1/.erCl.f\tlA Vll.rja.r (} , Unofficial Witness    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.                                                          LAURIE SANDERS                                                       COMM. #2084867 z   Date:  07/18/2018                                  Notary Public · California ::u                                                         Orange County ~   My commission expires: 10/04/2018                 My Comm. Expires Oct. 4, 2018    Georgia                                                                 Page 20  Multifamily Deed to Secure Debt, Assignment of Rents  and Security Agreement  

 

             CALIFORNIA ALL PURPOSE 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.   State of CALIFORNIA     )                           ss  County of Orange        )   On July 17, 2018, before me, Laurie Sanders, Notary Public, personally appeared Ella S.  Neyland, 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 she executed  the same in her authorized capacity, and that by her 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.                    LAURIE SANDERS t         WITNESS my hand and official seal.                 COMM. #2084867 z                 Notary Public - California g                    Orange County                M Comm. Expires Oct. 4, 2018  

 

             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," and "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   Trade Names  

 

                                  EXHIBIT A                             DESCRIPTION OF THE LAND                               The 1800 at Barrett Lakes   ALL THAT TRACT OR PARCEL OF LAND LYING AND BEING IN LAND LOTS          791, 792  AND 793  OF THE 16TH DISTRICT,  2ND  SECTION AND   LAND  LOT 210 OF THE 20TH  DISTRICT,  2ND  SECTION,   OF  COBB   COUNTY,   GEORGIA,   AND   BEING  MORE  PARTICULARLY DESCRIBED AS FOLLOWS:   BEGINNING   AT  AN  IRON  PIN  FOUND   (1/2" REBAR)  MARKING    THE  COMMON  CORNER   OF  LAND   LOTS  791, 792, 793 AND  794 OF  THE  16TH DISTRICT,  2ND  SECTION OF COBB COUNTY; THENCE ALONG THE SOUTH LINE OF LAND LOT 792  (SAID LINE BEING COMMON TO LAND LOTS       792 AND 793), SOUTH  89°47'27" WEST  FOR A  DISTANCE   OF 669.80 FEET TO  AN IRON  PIN FOUND   (1-1/2" CRIMPED TOP  PIPE); THENCE DEPARTING    SAID  SOUTH  LINE OF  LAND  LOT  792 AND  PROCEED  SOUTH 00°14'00" WEST FOR A   DISTANCE OF 495.17  FEET TO AN IRON PIN PLACED  (1/2" REBAR); THENCE SOUTH 00°  14'00" WEST FOR A DISTANCE OF 847.50 FEET TO  AN IRON PIN PLACED (1/2"  REBAR)  ON THE SOUTH LINE OF LAND     LOT 793  (SAID  LINE BEING  COMMON    TO  LAND   LOTS 793 &  864); THENCE  ALONG THE   SOUTH  LINE OF  LAND  LOT 793  (SAID LINE BEING COMMON TO     LAND   LOTS  793 & 864),  NORTH   89°06'43" WEST FOR A  DISTANCE   OF 648.52 FEET TO  A NAIL  FOUND  AT  BASE OF  1" AXLE IN ROCK PILE   MARKING THE SOUTHWEST CORNER OF         LAND  LOT  793 AND ON THE EAST LINE    OF LAND  LOT 210  OF THE 20TH DISTRICT,  2ND  SECTION  OF  COBB  COUNTY   (SAID LINE  HEREINAFTER BEING REFERRED      TO AS  THE  DISTRICT  LINE); THENCE  DEPARTING    SAID DISTRICT  LINE  AND  PROCEED  NORTH 88°55'09" WEST FOR A DISTANCE OF 363.02 FEET TO AN IRON PIN PLACED  (1/2" REBAR); THENCE NORTH 31°11'20" WEST A   DISTANCE OF 394.24 FEET TO AN  IRON  PIN FOUND  (1/2" REBAR); THENCE NORTH 41°29'14"   WEST A   DISTANCE  OF  94.44 FEET TO AN IRON PIN FOUND (5/8" REBAR); THENCE NORTH 45°20'57" WEST A  DISTANCE OF 178.68  FEET TO AN IRON PIN FOUND (3/4"   REBAR);  THENCE NORTH  39°50'52" WEST A DISTANCE OF  80.81 FEET TO AN IRON PIN PLACED (1/2"  REBAR);  THENCE   NORTH   23°17'20" WEST A  DISTANCE   OF 113.61 FEET TO  AN  IRON  PIN  PLACED   (1/2" REBAR)  ON  THE   EASTERLY   RIGHT-OF-WAY  LINE    OF  GREERS  CHAPEL ROAD VARIABLE R/W);     THENCE ALONG THE EASTERLY RIGHT-OF-WAY  LINE OF  GREERS  CHAPEL ROAD    THE FOLLOWING COURSES      AND  DISTANCES:   1)  25.96 FEET ALONG THE ARC OF A     CURVE TO THE LEFT,   SAID CURVE HAVING A  RADIUS OF 196.52 FEET AND BEING SUBTENDED BY A CHORD OF NORTH 03°11 '59"  EAST, 25.94 FEET TO A POINT; 2) THENCE NORTH 00°35'06" WEST FOR A DISTANCE  OF 514.81 FEET TO  AN  IRON PIN PLACED   (1/2" REBAR) WHERE   GREERS  CHAPEL  ROAD   INTERSECTS   THE  SOUTHEASTERLY     RIGHT-OF-WAY  LINE    OF  BARRETT  LAKES BOULEYARD     (VARIABLE R/W, FKA: NEW GREERS CHAPEL ROAD); THENCE  ALONG     THE     SOUTHEASTERLY,      SOUTHERLY      AND     SOUTHEASTERLY  RIGHT-OF-WAY  LINE    OF BARRETT    LAKES  BOULEVARD     (VARIABLE   R/W) THE  FOLLOWING    COURSES   AND  DISTANCES:   1) 210.72 FEET ALONG  THE  ARC  OF  A  CURVE TO THE RIGHT, SAID CURVE HAVING A RADIUS OF 348.00 FEET AND BEING  SUBTENDED BY A    CHORD OF NORTH 31°02'21" EAST, 207.52 FEET TO AN IRON PIN  PLACED (1/2" REBAR); 2) THENCE SOUTH 41°36'50" EAST A DISTANCE OF 4.50 FEET  TO AN IRON PIN PLACED (1/2" REBAR); 3) THENCE 192.98 FEET ALONG THE ARC OF   Georgia                                                                 Page A-1  Multifamily Deed to Secure Debt, Assignment of Rents  and Security Agreement  

 

A CURVE   TO THE  RIGHT, SAID  CURVE   HAVING  A  RADIUS  OF 343.50 FEET AND  BEING  SUBTENDED   BY  A CHORD   OF NORTH   64°28'49" EAST, 190.45 FEET TO AN  IRON PIN PLACED (1/2" REBAR); 4) THENCE NORTH 09°25'32" WEST A DISTANCE OF  3.15 FEET TO AN IRON PIN PLACED (1/2" REBAR); 5) THENCE NORTH 80°29'41" EAST  AND CROSSING THE DISTRICT LINE FOR A DISTANCE OF 754.59 FEET TO AN IRON  PIN PLACED  (1/2" REBAR); 6) THENCE  804.09 FEET ALONG THE ARC    OF A CURVE  TO  THE  LEFT, SAID  CURVE   HAVING   A  RADIUS   OF 800.00 FEET  AND   BEING  SUBTENDED   BY A  CHORD  OF NORTH 51°42'02"  EAST 770.67 FEET TO AN IRON PIN  FOUND   (3/4" REBAR); 7) THENCE  NORTH   22°54'22" EAST A DISTANCE   OF 408.52  FEET TO  AN IRON  PIN FOUND   (1/2" REBAR); 8) THENCE 181.66 FEET ALONG   THE  ARC OF  A CURVE TO  THE RIGHT,  SAID  CURVE HAVING A RADIUS     OF 522.96 FEET  AND  BEING SUBTENDED    BY  A CHORD   OF NORTH  32°51'26" EAST, 180.75 FEET TO  AN IRON  PIN PLACED   (1/2" REBAR); THENCE  DEPARTING   THE  SOUTHEASTERLY  RIGHT-OF-WAY    LINE OF  BARRETT   LAKES   BOULEVARD    (VARIABLE   R/W, FKA:  NEW   GREERS   CHAPEL   ROAD)  AND   PROCEED    SOUTH  42°49'17" EAST  FOR  A  DISTANCE   OF 842.11 FEET  TO  AN  IRON  PIN PLACED   (1/2" REBAR)  WITHIN  A  GEORGIA POWER EASEMENT; THENCE SOUTH 89°27'09" WEST FOR A DISTANCE OF  290.07 FEET TO AN  IRON PIN PLACED   (1/2" REBAR) ON THE  EAST  LINE OF LAND  LOT  792 (SAID LINE BEING   COMMON    TO  LAND  LOTS  791 &  792 OF THE  16TH  DISTRICT, 2ND  SECTION  OF COBB  COUNTY;   THENCE   ALONG THE   EAST  LINE OF  LAND  LOT  792 (SAID LINE  BEING  COMMON    TO LAND   LOTS  791 & 792), SOUTH  00°56'29" EAST FOR A  DISTANCE  O  F 682.09 FEET TO AN  IRON  PIN FOUND   (1/2"  REBAR)  MARKING THE    COMMON    CORNER   OF LAND   LOTS 791,  792, 793 AND 794  AND  THE  POINT OF  BEGINNING.  SAID TRACT   OR PARCEL   CONTAINING   67.83537  ACRES OR 2,954,909 SQUARE FEET.  TOGETHER    WITH  EASEMENTS     APPURTENANT     TO  SAID  PROPERTY    ARISING  UNDER   THAT  CERTAIN   LIMITED   WARRANTY     DEED  FROM   SENIOR   CORP., A  DELAWARE CORPORATION TO STERLING HIGHLANDS DEVELOPMENT PARTNERS,  LTD., A GEORGIA CORPORATION, DATED APRIL 1,    1988, RECORDED IN DEED BOOK  4865, PAGE  382, RECORDS    OF  COBB   COUNTY,   GEORGIA;   AS  RE-RECORDED  JUNE 22, 1988 AT 1:14PM., RECORDED  IN DEED  BOOK 4975, PAGE  385, AFORESAID  RECORDS.    Georgia                                                                PageA-2  Multifamily Deed to Secure Debt, Assignment of Rents  and Security Agreement  

 

                                  EXHIBITB                          MODIFICATIONS TO INSTRUMENT   The following modifications are made to the text of the Instrument that precedes this Exhibit:   I.    STATE-SPECIFIC MODIFICATIONS.   1.    The definition of "Attorneys' Fees and Costs" in Section 1 is deleted in its entirety and        replaced with the following:         "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.        Notwithstanding anything to the contrary in the Loan Documents and only to the        extent governed by Georgia law, any provision providing for the payment of        "Attorneys' Fees and Costs", "reasonable attorneys' fees" or other words or        provisions of similar import, shall mean attorneys' and paralegal fees incurred        based upon the usual and customary hourly rates of the attorneys and paralegals        involved for time actually spent by such attorneys and paralegals, plus customary        charges for copies, postage and any other out of pocket expenses, and without giving        effect to any statutory presumption that may then be in effect.    Georgia                                                                 Page B-1  Multifamily Deed to Secure Debt, Assignment of Rents  and Security Agreement  

 

                                                   c:.-·-·.,:,c. 'l- '- ...                                                   Cci ui1-.:o tO t,e 2 tiUe c:;;--;d correct                                                   copy as the same appears in our                                                   files. 0'01/? (}  1                                                   BY_~/.>(/A ~/                                                       FIDELITY i-Ji\T!ONAL TrrLE  Prepared by, and after recording  return to:  Jeremy M. McLean, Esquire  Troutman Sanders LLP  Post Office Box 1122  Richmond, Virginia 23218-1122                                                     Freddie Mac Loan No. 504021354                                                            The 1800 at Barrett Lakes                      ASSIGNMENT OF SECURITY INSTRUMENT                                  (Revised 12-19-2014)   FOR VALUABLE CONSIDERATION, PNC BANK, NATIONAL ASSOCIATION, a national  banking association ("Assignor"), having its principal place of business at 26901 Agoura Road,  Suite 200, Calabasas Hills, California 91301, Attention: Loan Servicing Manager, hereby  assigns, grants, sells and transfers to the FEDERAL HOME   LOAN    MORTGAGE  CORPORATION,     a corporation organized and existing under the laws of the United States  ("Assignee"), having its principal place of business at 8200 Jones Branch Drive, McLean, Virginia  22102, and Assignee's successors, transferees and assigns forever, all of the right, title and interest  of Assignor in and to the Multifamily Deed to Secure Debt, Assignment of Rents and Security  Agreement, dated as of July 31, 2018, entered into by STAR BARRETT LAKES, LLC, a  Delaware limited liability company ("Borrower") for the benefit of Assignor, securing an  indebtedness of Borrower to Assignor in the principal amount of $40,910,000.00 recorded in the  land records of Cobb County, Georgia prior to this Assignment ("Instrument''), which  indebtedness is secured by the property described in Exhibit A attached to this Assignment and  incorporated into it by this reference.  Together with the Note or other obligation described in the Instrument and all obligations secured  by the Instrument now or in the future.  IN WITNESS   WHEREOF,   Assignor has executed this Assignment as of July 31, 2018, to be  effective as of the effective date of the Instrument.    Assignment of Security Instrument                                         Page 1  

 

                                     ASSIGNOR:                                        PNC BANK, NATIONAL ASSOCIATION, a                                          national banking association     Signed, sealed and delivered in the  presence of:    Print Name: N if--,JIL-1 M l-€CL~"; Unofficial Witness    NotaryPu~\ iMfJ[d@,0  County, 6£1. _t-      IV  [SEAL]  Date:  Cfu I y  I<.?' J  I<t'   My commission expires: Mtt:y  6L ~~         i••eeeeeoneenf           ~.. ,.~,- CIA THO~GRIV~NG.        •. ::..'!>: . NotaryP~bllc-Callforrna z        ~  ·- -.   SanD1egoCounty ~           ·, .   Commission# 2196629 -        •      My Comm. Expires May 31, 2021    Assignment of Security Instrument                                       Page S-1  

 

                                  EXHIBITA                          DESCRIPTION OF THE PROPERTY                               The 1800 at Barrett Lakes   ALL THAT TRACT OR PARCEL OF LAND LYING AND BEING IN LAND LOTS          791,792  AND  793 OF THE 16TH DISTRICT,  2ND SECTION AND    LAND  LOT 210 OF THE 20TH  DISTRICT,  2ND  SECTION,  OF  COBB   COUNTY,    GEORGIA,   AND  BEING   MORE  PARTICULARLY DESCRIBED AS FOLLOWS:  BEGINNING   AT  AN  IRON  PIN  FOUND   (1/2" REBAR)  MARKING   THE  COMMON  CORNER   OF  LAND  LOTS   791, 792, 793 AND 794  OF THE  16TH  DISTRICT,  2ND  SECTION OF COBB   COUNTY; THENCE ALONG THE SOUTH LINE OF LAND         LOT 792  (SAID LINE BEING COMMON TO LAND      LOTS  792 AND 793), SOUTH 89°47'27" WEST  FOR A  DISTANCE  OF  669.80 FEET TO AN  IRON  PIN FOUND   (1-1/2" CRIMPED TOP  PIPE); THENCE  DEPARTING   SAID SOUTH   LINE OF  LAND  LOT  792 AND  PROCEED  SOUTH 00°14'00" WEST FOR A  DISTANCE OF 495.17 FEET TO AN IRON PIN PLACED  (1/2" REBAR); THENCE SOUTH 00°  14'00" WEST FOR A DISTANCE OF 847.50 FEET TO  AN IRON PIN PLACED (1/2"  REBAR)  ON THE SOUTH LINE OF    LAND  LOT  793 (SAID  LINE BEING  COMMON    TO  LAND  LOTS  793 &  864); THENCE ALONG   THE  SOUTH  LINE OF LAND   LOT 793 (SAID LINE  BEING COMMON TO     LAND   LOTS 793 &  864),  NORTH  89°06'43" WEST  FOR A  DISTANCE  OF  648.52 FEET TO A  NAIL FOUND   AT  BASE  OF 1" AXLE  IN ROCK PILE  MARKING   THE  SOUTHWEST CORNER      OF LAND  LOT 793 AND  ON THE  EAST LINE  OF  LAND  LOT 210 OF THE 20TH DISTRICT,   2ND  SECTION  OF COBB   COUNTY   (SAID LINE HEREINAFTER    BEING  REFERRED   TO AS  THE DISTRICT  LINE); THENCE   DEPARTING   SAID  DISTRICT  LINE  AND  PROCEED  NORTH 88°55'09" WEST FOR A  DISTANCE OF   363.02 FEET TO AN IRON PIN PLACED  (1/2" REBAR); THENCE NORTH 31°11'20"  WEST A  DISTANCE OF   394.24 FEET TO AN  IRON PIN FOUND   (1/2" REBAR); THENCE NORTH    41°29'14" WEST A DISTANCE   OF  94.44 FEET TO AN IRON PIN FOUND (5/8" REBAR); THENCE NORTH 45°20'57" WEST A  DISTANCE OF   178.68 FEET TO AN IRON PIN FOUND (3/4"  REBAR); THENCE NORTH  39°50'52" WEST A DISTANCE OF 80.81 FEET TO AN IRON PIN PLACED (1/2"   REBAR);  THENCE   NORTH   23°17'20" WEST A DISTANCE   OF  113.61 FEET TO  AN  IRON  PIN  PLACED   (1/2" REBAR)  ON  THE  EASTERLY    RIGHT-OF-WAY    LINE  OF  GREERS  CHAPEL ROAD    VARIABLE R/W);  THENCE ALONG THE EASTERLY RIGHT-OF-WAY  LINE OF GREERS   CHAPEL ROAD    THE FOLLOWING COURSES      AND  DISTANCES:  1)  25.96 FEET ALONG THE ARC OF    A CURVE TO THE    LEFT, SAID  CURVE HAYING    A  RADIUS OF  196.52 FEET AND BEING SUBTENDED BY A CHORD OF NORTH 03°11 '59"  EAST, 25.94 FEET TO A POINT; 2) THENCE NORTH 00°35'06" WEST FOR A DISTANCE  OF 514.81 FEET TO  AN IRON  PIN PLACED   (1/2" REBAR) WHERE   GREERS  CHAPEL  ROAD   INTERSECTS   THE  SOUTHEASTERLY     RIGHT-OF-WAY    LINE  OF  BARRETT  LAKES BOULEYARD     (VARIABLE R/W, FKA: NEW GREERS CHAPEL ROAD); THENCE  ALONG     THE    SOUTHEASTERLY,       SOUTHERLY      AND     SOUTHEASTERLY  RIGHT-OF-WAY    LINE OF  BARRETT   LAKES   BOULEVARD    (VARIABLE   R/W)  THE  FOLLOWING    COURSES   AND  DISTANCES:  1) 210.72 FEET ALONG   THE  ARC  OF A  CURVE TO THE RIGHT, SAID CURVE HAYING      A RADIUS OF 348.00 FEET AND BEING  SUBTENDED BY A    CHORD OF NORTH 31°02'21"   EAST, 207.52 FEET TO AN IRON PIN  PLACED (1/2" REBAR); 2) THENCE SOUTH 41°36'50" EAST A DISTANCE OF    4.50 FEET  TO AN IRON PIN PLACED (1/2" REBAR); 3) THENCE 192.98 FEET ALONG THE ARC OF  A CURVE   TO THE  RIGHT,  SAID CURVE   HAVING  A  RADIUS  OF  343.50 FEET AND  BEING  SUBTENDED    BY A CHORD   OF  NORTH  64°28'49" EAST, 190.45 FEET TO AN  IRON PIN PLACED (1/2" REBAR); 4) THENCE NORTH 09°25'32" WEST A DISTANCE OF   Assignment of Security Instrument                                      PageA-1  

 

3.15 FEET TO AN IRON PIN PLACED (1/2" REBAR); 5) THENCE NORTH 80°29'41" EAST  AND  CROSSING THE DISTRICT LINE FOR A DISTANCE OF      754.59 FEET TO AN IRON  PIN PLACED  (1/2" REBAR); 6) THENCE  804.09 FEET ALONG THE ARC    OF A CURVE  TO THE   LEFT, SAID  CURVE   HAVING   A  RADIUS   OF 800.00 FEET  AND   BEING  SUBTENDED   BY A  CHORD  OF  NORTH 51 °42'02" EAST 770.67 FEET TO AN IRON PIN  FOUND  (3/4" REBAR); 7) THENCE   NORTH   22°54'22" EAST A DISTANCE   OF 408.52  FEET TO  AN IRON  PIN FOUND   (1/2" REBAR); 8) THENCE 181.66 FEET ALONG THE  ARC OF A  CURVE TO THE RIGHT,   SAID  CURVE HAVING A RADIUS     OF 522.96 FEET  AND  BEING SUBTENDED    BY A  CHORD   OF NORTH  32°51'26" EAST, 180.75 FEET TO  AN IRON  PIN PLACED   (1/2" REBAR); THENCE  DEPARTING THE    SOUTHEASTERLY  RIGHT-OF-WAY    LINE OF  BARRETT   LAKES   BOULEVARD    (VARIABLE   R/W, FKA:  NEW   GREERS   CHAPEL   ROAD)  AND   PROCEED    SOUTH  42°49'17" EAST  FOR  A  DISTANCE   OF 842.11 FEET  TO  AN  IRON  PIN PLACED   (1/2" REBAR)  WITHIN  A  GEORGIA POWER EASEMENT; THENCE SOUTH 89°27'09" WEST FOR A DISTANCE OF  290.07 FEET TO AN  IRON PIN PLACED   (1/2" REBAR) ON THE  EAST LINE  OF LAND  LOT  792 (SAID LINE BEING   COMMON    TO  LAND  LOTS  791 &  792 OF THE  16TH  DISTRICT, 2ND  SECTION  OF COBB  COUNTY;   THENCE   ALONG THE   EAST  LINE OF  LAND  LOT  792 (SAID LINE  BEING  COMMON    TO LAND   LOTS  791 & 792), SOUTH  00°56'29" EAST FOR A  DISTANCE  O  F 682.09 FEET TO AN  IRON  PIN FOUND   (1/2"  REBAR)  MARKING   THE  COMMON    CORNER   OF LAND   LOTS 791,  792, 793 AND 794  AND  THE POINT  OF  BEGINNING.  SAID TRACT   OR PARCEL   CONTAINING   67.83537  ACRES OR 2,954,909 SQUARE FEET.  TOGETHER    WITH  EASEMENTS     APPURTENANT     TO  SAID  PROPERTY    ARISING  UNDER   THAT  CERTAIN   LIMITED   WARRANTY     DEED  FROM   SENIOR   CORP., A  DELAWARE CORPORATION TO STERLING HIGHLANDS DEVELOPMENT PARTNERS,  LTD., A GEORGIA CORPORATION, DATED APRIL 1,    1988, RECORDED IN DEED BOOK  4865, PAGE  382, RECORDS    OF  COBB   COUNTY,   GEORGIA;   AS  RE-RECORDED  JUNE 22, 1988 AT 1:14PM., RECORDED  IN DEED  BOOK 4975, PAGE 385,  AFORESAID  RECORDS.    Assignment of Security Instrument                                       Page A-2ex109barrettlkesassgnmto

                                                                         EXHIBIT 10.9                                                 Freddie Mac Loan Number: 504021354                                              Property Name: The 1800 at Barrett Lakes                 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 31st day of July, 2018, by  and  among  STAR   BARRETT    LAKES,  LLC,   a Delaware limited liability company  ("Borrower"), PNC BAt'IK, NATIONAL   ASSOCIATION,    a national banking association  ("Lender"), and STEADFAST MANAGEMENT C01"IPANY, 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,        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   Assignment of Management Agreement and  Subordination of Management Fees  

 

       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 passage 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 tenn 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.   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.    Assignment ofM:magement Agreement and  Subordination of Management Fees                                          Pagc2  

 

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 transferring        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.  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:       PNC Bank, National Association                                   26901 Agoura Road, Suite 200                                   Calabasas Hills, California 91301                                   Attention: Loan Servicing Manager    Assignment of Management Agreement and  Subordination of Management Fees                                          Page 3  

 

             If to Borrower:     ST AR Barrett Lakes, LLC                                   c/o Steadfast Companies                                    18100 Von Kannan Avenue, Suite 500                                   Irvine, California 92612                                   Attention - General Counsel: Ana Marie de! Rio                If to Property       Steadfast Management Company, Inc.               Manager:            c/o Steadfast Companies                                    18100 Von Karman Avenue, Suite 500                                    Irvine, California 92612                                   Attention - General Counsel: Ana Marie de! Rio         (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,              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.   Assignment of 1\'Ianagement Agreement and  Subordination of i\lanagcmcnt Fees                                        Page4  

 

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  \Vaiver; 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        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, jud1,'111ent 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   Assignment of Management Agreement and  Subordination of Management Fees                                         Pages  

 

      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:                   Exhibit A    Modifications to Assignment                   Exhibit B    Copy of Management Agreement    IN WITNESS  WHEREOF   the undersigned have executed this Assignment as of the date and   year first written above.                             [END OF PAGE- SIGNATURES TO FOLLOW]    Assignment of Management Agreement and  Subordination of Management Fees                                          Page6  

 

                                      BORRO\VER:                                        STAR   BARRETT LAKES, LLC, a Delaware                                           limited liability company                                        By:  Steadfast Apartment Advisor, LLC, a                                             Delaware limited liability company, its                                             Manager                                              By:                                                 Ella S. Neyland    "-                                                President    Assignment of Management Agreement and  Subordination of I\'Janagement Fees                                        Page S-1  

 

                                    LENDER:                                      PNC  BANK, NATIONAL ASSOCIATION,      a                                         national banking association                                        Byi!if:flKellA.  Tyleri \  'G ~                                         Vice President    Assignment of Management Agreement and  Subordination of Management Fees                                       Page S-2  

 

                                       PROPERTY MANAGER:                                          STEADFAST MANAGEMENT COMPANY,                                            INC., a California corporation                                          .,~Name:i<naMarie de!   Rio                                                            Title: Secretary    Assignment of i\Ianngement Agreement and  Subordinntion of .i\Innagement Fees                                          Pngc S-3  

 

                                  EXHIBIT A                         MODIFICATIONS TO ASSIGNMENT   The following modifications are made to the text of the Assignment that precedes this Exhibit.   I.   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,              Q!: amended or assigned other thaH 13ursuaHt to this AssignmeH!. 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              Propertv Manager  is not paid all fees due to it under the Management              Agreement.    Assignment of Management Agreement and  Subordination of Management Fees                                        Pnge A-1  

 

                                           EXHIBITB                                  MANAGEMENT AGREEMENT                                             See Attached    Assignment ofl\'1anagcmcnt Agreement and  Subordination of Management Fees                                                          Page B-1  

 

               PROPERTY MANAGEIVIENT AGREEMENT        THIS  PROPERTY  MANAGEMENT     AGREEMENT   (this "Agreement") is made and  entered into as of November 20, 2014 (the "Effective Date"), by and between STAR BARRETT  LAKES,  LLC,  a Delaware limited liability company ("Owner"), and STEADFAST  MANAGEMENT COMPANY, INC., a California corporation ("Manager").                                   ARTICLE 1                                 DEFINITIONS         Section 1. I 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 Y car" means the calendar year beginning January 1 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 truces,  franchise fees, and awards arising out of eminent domain proceedings, discounts and dividends  on insurance policies.         "Hazardous Materials" means any muterial 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 ha'.lardous 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  accordance with Governmental Requirements by Owner or its tenants in the usual and ordinary  course of their activities), PCBs and radon gas.         "Major Capital Improvements" has the meaning given in Section 3.6.         "l\fanngcmcnt Fee" has the meaning given in Section 4.1.         "l\1anagcr" has the meaning given in the introductory paragraph.         "Operating Budget" has the meaning given in Section 3.11 (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.         "Propcrtv" means the multifamily apartment project listed and described on Exhibit B  attached hereto and made a part hereof.         "Securitv Deposit Account" has the meaning given in Section 5.1.         "fill!!!:" means the state in whlch 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 Ella S. Neyland,  President. 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 perfonn 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  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 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.                                   ARTICLE3                  SERVICES TO BE PERFOR1VIED BY MANAGER         Section 3.1 Expense of Owner. All acts performed by Manager in the perfonnance  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 \vith 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                                        .i  

 

expenses), general accounting and reporting expenses for services included among Manager's  duties under the Agreement; and               (b)  Other. All sums othetwise 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 ail 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                                        4  

 

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  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 Maoager 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 aod 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 talcing into consideration the amount 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 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 Jaws,  rules, restrictions or regulations applicable to Maoager 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 normal 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 this 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 "Major   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 terms 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 perfonncd 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   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 Tequired 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 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                                            6  

 

Owner, Manager is authorized to settle any and all claims against insurance companies arising  out of any policies, including the execution of proofs ofloss, the adjustment oflosses, 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 of repairing the drunage 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, drunagc, loss, liability or expense occurs as a  result of injury to person or damage to property, regardless whether any such demand, claim,  action, drunage, 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, Lo 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  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 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  ,vith 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  prov1s1ons 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 com pliancc 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 governmental 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. 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 ac!mowledges 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, 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 ,vithheld, 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  causing or likely to cause a variance of greater than ten percent (I 0%) or S25,000, whichever is  greater, in any one accounting category for the current month cumulative year-to-date total shalJ  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 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 arc maintained as the property of Owner.         Section 3.13 Financial Reports.               (a)  Monthly Reports. On or before the fifteenth (15111 ) day of each month  during the term 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  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)  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  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 ,vith 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 affirmed its intention to contest and promptly                                        JO  

 

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 hannless for talcing 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 oflaw, or for anything that it may do or refrain from doing, except in cases of willful  misconduct or gross negligence of Manager.                                   ARTICLE4                      MANAGER'S COMPENSATION, TERM         Section 4.1 Fees Paid to Manager. Commencing on tl1e 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  tenninated as provided herein. Thereafter, if neither party gives written notice to the other at  least 60 days prior to the expiration date hereof that tliis Agreement is to tenninate, then this  Agreement shall be automatically renewed on a montli-to-month basis.         Section 4.3 Termination Rights. Notwithstanding anytliing that may be contained  herein to the contrary, Owner may terminate tliis 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, tlie party not in breach hereunder may tenninate  this Agreement by giving written notice to tlie 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 termination. Within 30 days after  any tennination, 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 witliin 30  days after any such termination, Manager shall deliver to Owner's Representative, as required by  Section 3.13(b), tlie statement of cash flow for the Fiscal Year or portion thereof ending on the  date of tennination. In addition, upon termination of this Agreement for any reason, Manager  will submit to Owner within 30 days after tcnnination any reports required hereunder, all of tlie  cash and bank accounts of the Property, including, without limitation, the Security Deposit  Account, investments and records. 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 tlicm at its own expense.                                        11  

 

                                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 Depositorv 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 \Vorking 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.         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                                       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.                                   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 STAR   Barrett Lakes, LLC, 18100 Von Karman Avenue, Suite 500, Irvine, CA 92612, Attention: Kevin  Keating; 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 Bcnefic!nry. 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 specifica]Jy 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  parcy hereunder (or  so many of such rights as the other party shall elect to void).         Section 6.6 Sevcrabil!ty. 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 Properly 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 in two or more  counterparts, each of which shall be deemed to be an original.                         [Signatures appear on following page.]                                        i4  

 

           This Property Management Agreement is hereby executed by duly authorized  representatives of the parties hereto as of the Effective Date.     O'WNER:                     STAR BARRETT LAKES, LLC,                               a Delaware limited liability company                                By:   Steadfast Apartment Advisor, LLC, its Manager     MANAGER:                    STEADFAST MANAGEMENT COMPANY, INC.,                               a California corporation                               By:/a     142                                   William C. Stoll, Vice President                                         i5  

 

                                    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 Education                  $20.00 p.u.p.y.                                             16  

 

                                    EXHIBITB                                   THE PROPERTY   The 1800 Barrett Lakes is located at 1800 Barrett Lakes Boulevard NW, Kennesaw, Georgia, in  the County of Cobb, and described as follows:   The Property is comprised of39 buildings with 500 units and 38 detached garages. Site  amenities include leasing center, clubhouse, two swimming pools, sauna, two lighted tennis  courts, fitness center, and playground. It is situated on 68.19 acres. Phase I was built in 1989  and phase 2 was built in 1997.                                             17

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