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<SEC-DOCUMENT>0001362310-08-003650.txt : 20080716
<SEC-HEADER>0001362310-08-003650.hdr.sgml : 20080716
<ACCEPTANCE-DATETIME>20080715175850
ACCESSION NUMBER:		0001362310-08-003650
CONFORMED SUBMISSION TYPE:	8-K
PUBLIC DOCUMENT COUNT:		5
CONFORMED PERIOD OF REPORT:	20080709
ITEM INFORMATION:		Completion of Acquisition or Disposition of Assets
ITEM INFORMATION:		Creation of a Direct Financial Obligation or an Obligation under an Off-Balance Sheet Arrangement of a Registrant
ITEM INFORMATION:		Financial Statements and Exhibits
FILED AS OF DATE:		20080716
DATE AS OF CHANGE:		20080715

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			NETREIT
		CENTRAL INDEX KEY:			0001080657
		STANDARD INDUSTRIAL CLASSIFICATION:	REAL ESTATE INVESTMENT TRUSTS [6798]
		IRS NUMBER:				000000000

	FILING VALUES:
		FORM TYPE:		8-K
		SEC ACT:		1934 Act
		SEC FILE NUMBER:	001-34049
		FILM NUMBER:		08953878

	BUSINESS ADDRESS:	
		STREET 1:		365 SOUTH RANCHO SANTA RD
		STREET 2:		SUITE 300
		CITY:			SAN MARCO
		STATE:			CA
		ZIP:			92078
		BUSINESS PHONE:		760-471-8536
</SEC-HEADER>
<DOCUMENT>
<TYPE>8-K
<SEQUENCE>1
<FILENAME>c73913e8vk.htm
<DESCRIPTION>FORM 8-K
<TEXT>
<HTML>
<HEAD>
<TITLE>Filed by Bowne Pure Compliance</TITLE>
</HEAD>
<BODY bgcolor="#FFFFFF">
<!-- PAGEBREAK -->

<DIV style="font-family: 'Times New Roman',Times,serif; margin-left: .25in; width: 7.20in">



<DIV style="font-size: 10pt">
<DIV style="width: 100%; border-bottom: 2pt solid black; font-size: 1pt">&nbsp;</DIV>
<DIV style="width: 100%; border-bottom: 1pt solid black; font-size: 1pt">&nbsp;</DIV>


<P align="center" style="font-size: 14pt"><B>UNITED STATES<BR>
SECURITIES AND EXCHANGE COMMISSION<BR>
<FONT style="font-size: 12pt">Washington, D.C. 20549
</FONT></B>

<P align="center" style="font-size: 18pt"><B>FORM 8-K</B>

<P align="center" style="font-size: 12pt"><B>CURRENT REPORT<BR>
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934</B>

<P align="center" style="font-size: 10pt"><B>Date of Report (Date of earliest event reported): July 9, 2008</B>

<P align="center">

<P align="center" style="font-size: 24pt"><B>NetREIT<BR></B>
<FONT style="font-size: 10pt">(Exact name of registrant as specified in its charter)
</FONT>

<TABLE border="0" width="100%" cellspacing="0" cellpadding="0" style="font-size: 10pt; text-align: center">
<TR>
    <TD width="32%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="33%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="32%">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD style="border-bottom: 1px solid #000000"><B>CALIFORNIA</B></TD>
    <TD>&nbsp;</TD>
    <TD style="border-bottom: 1px solid #000000"><B>001-34049</B></TD>
    <TD>&nbsp;</TD>
    <TD style="border-bottom: 1px solid #000000"><B>33-0841255</B></TD>
</TR>
<TR valign="top">
    <TD>(State or other Jurisdiction of Incorporation)</TD>
    <TD>&nbsp;</TD>
    <TD>(Commission File Number)</TD>
    <TD>&nbsp;</TD>
    <TD>(IRS Employer Identification No.)</TD>
</TR>
</TABLE>

<TABLE border="0" width="100%" cellspacing="0" cellpadding="0" style="font-size: 10pt; text-align: center">
<TR>
    <TD width="49%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="49%">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD style="border-bottom: 1px solid #000000"><B>365 South Rancho Santa Fe Road, Suite 300<BR>San Marcos, California <BR></B></TD>
    <TD>&nbsp;</TD>
    <TD style="border-bottom: 1px solid #000000"><B>92078</B></TD>
</TR>
<TR valign="top">
    <TD>(Address of Principal Executive Offices)</TD>
    <TD>&nbsp;</TD>
    <TD>(Zip Code)</TD>
</TR>
</TABLE>

<P align="center" style="font-size: 10pt">Registrant&#146;s telephone number, including area code: <B>(760) 471-8536</B>


<TABLE border="0" width="30%" cellspacing="0" cellpadding="0" style="font-size: 10pt; text-align: center">
<TR>
    <TD width="100%">&nbsp;</TD>
</TR>
<TR>
    <TD nowrap style="border-bottom: 1px solid #000000"><B>&nbsp;</B></TD>
</TR>
<TR>
    <TD nowrap>(Former name or former address if changed since last report.)</TD>
</TR>
</TABLE>

<P align="left" style="font-size: 10pt">Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant
under any of the following provisions:

<P align="left" style="font-size: 10pt">
<FONT face="Wingdings">&#111;</FONT> Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)<BR><BR>
<FONT face="Wingdings">&#111;</FONT> Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)<BR><BR>
<FONT face="Wingdings">&#111;</FONT> Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))<BR><BR>
<FONT face="Wingdings">&#111;</FONT> Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))<BR>


<P>
<DIV style="width: 100%; border-bottom: 1pt solid black; margin-top: 10pt; font-size: 1pt">&nbsp;</DIV>
<DIV style="width: 100%; border-bottom: 2pt solid black; font-size: 1pt">&nbsp;</DIV>

</DIV>

<P align="center" style="font-size: 10pt">&nbsp;

<P align="center" style="font-size: 10pt; display: none">1
</DIV>

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<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif; margin-left: .25in; width: 7.20in">

<P align="left" style="font-size: 10pt"><B>Item&nbsp;2.01 Completion of Acquisition or Disposition of Assets.</B>


<P align="left" style="font-size: 10pt; text-indent: 4%">On July&nbsp;9, 2008, Registrant closed its purchase and acquired the Executive Office Plaza property (&#147;EOP&#148;) located
at 1271, 1277, 1283 and 1295 Kelly Johnson Boulevard in Colorado Springs, Colorado. EOP is comprised of an office
condominium development consisting of four (4)&nbsp;separate buildings situated on four (4)&nbsp;legal parcels. The property is
developed as an office condominium complex. The property consists of a total of 65,084 sq. ft. situated on a total of
4.57 acres. The property is approximately 6&nbsp;years old. On the acquisition date, 95% was under NNN leases to tenants.
Thus, the Company may sell portions of the property as individual condominium units in the future.


<P align="left" style="font-size: 10pt; text-indent: 4%">Registrant&#146;s purchase price for the property was $10,150,000, of which $6,597,500 was paid from the proceeds of
the Mile High Banks credit facility described in Item&nbsp;2.03 below. The property is subject to a deed of trust securing
the Mile High Banks credit facility.


<P align="left" style="font-size: 10pt"><B>Item&nbsp;2.03 Creation of a Direct Financial Obligation.</B>


<P align="left" style="font-size: 10pt; text-indent: 4%">On July&nbsp;9, 2008, the Company entered into a fixed rate nondisclosable revolving line of credit loan in the amount
of $6,597,500 from Mile High Banks, DTC Branch, Greenwood Village, Colorado (the &#147;Mile High Banks Credit Facility&#148;).
The credit facility bears a fixed interest rate of 6.25% per annum and is due on June, 2011. The credit facility is
secured by first deeds of trust on Registrant&#146;s EOP and Regatta Square properties. The Registrant paid a total of
$43,785 in prepaid finance charges in connection with this credit facility.


<P align="left" style="font-size: 10pt; text-indent: 4%">The loan requires regular monthly payments of interest only commencing on August&nbsp;2, 2008. The loan is payable
immediately upon Lender&#146;s demand. If no demand is made, the total of unpaid accrued interest and principal is due and
payable on June&nbsp;9, 2011. The Company used $6,597,500 proceeds from the loan to acquire the EOP property, as described
in Item&nbsp;2.01 above. The loan is a revolving line of credit, and Registrant intends to regularly pay down the loan and
borrow against the credit line to fund one or more other future property acquisitions.


<P align="left" style="font-size: 10pt"><B>Item&nbsp;9.</B><B>01(c)</B><B> Exhibits.</B>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="96%">&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">4.3
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Mile High Banks Business Loan Agreement dated July&nbsp;9, 2008</TD>
</TR>

<TR valign="bottom">
   <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
       <TD>&nbsp;</TD>
</TR>

<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">4.4
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Promissory Note in favor of Mile High Banks dated July&nbsp;9, 2008</TD>
</TR>

<TR valign="bottom">
   <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
       <TD>&nbsp;</TD>
</TR>

<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">4.5
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Deed of Trust on EOP in favor of Mile High Banks dated July&nbsp;9, 2008</TD>
</TR>

<TR valign="bottom">
   <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
       <TD>&nbsp;</TD>
</TR>


<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">4.6
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Deed of Trust on Regatta Square Property in favor of Mile High Banks dated July&nbsp;9, 2008</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<P align="center" style="font-size: 10pt"><B>SIGNATURES</B>



<P align="left" style="font-size: 10pt; text-indent: 4%">Pursuant to the requirements of the Securities and Exchange Act of 1934, the registrant has duly caused this
report to be signed on its behalf by the undersigned hereunto duly authorized.



<P align="left" style="margin-left:48%; font-size: 10pt">NetREIT


<P align="left" style="font-size: 10pt">Date: July&nbsp;14, 2008



<P align="left" style="margin-left:48%; font-size: 10pt; margin-top: -11pt">By: <U> <B><I>/</I></B><I>s/ Kenneth Elsberry&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</I></U>
<BR>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Name: Kenneth Elsberry
<BR>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Title: Chief Financial Officer

<P align="center" style="font-size: 10pt">&nbsp;

<P align="center" style="font-size: 10pt; display: none">2
</DIV>

</BODY>
</HTML>
</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-4.3
<SEQUENCE>2
<FILENAME>c73913exv4w3.htm
<DESCRIPTION>EXHIBIT 4.3
<TEXT>
<HTML>
<HEAD>
<TITLE>Filed by Bowne Pure Compliance</TITLE>
</HEAD>
<BODY bgcolor="#FFFFFF">
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<DIV style="font-family: Helvetica,Arial,sans-serif; margin-left: .25in; width: 7.20in">

<DIV align="right" style="font-size: 10pt; margin-top: 10pt"><B>Exhibit&nbsp;4.3</B>
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 10pt"><B>BUSINESS LOAN AGREEMENT</B>
</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head --><TR valign="bottom">
    <TD width="9%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="9%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="9%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="9%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="9%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="9%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="9%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="9%">&nbsp;</TD>
</TR>
<TR style="font-size: 10pt" valign="bottom">
    <TD nowrap align="center" style="border-bottom: 1px solid #000000">Principal</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" style="border-bottom: 1px solid #000000">Loan Date</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" style="border-bottom: 1px solid #000000">Maturity</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" style="border-bottom: 1px solid #000000">Loan No</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" style="border-bottom: 1px solid #000000">Call / Coll</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" style="border-bottom: 1px solid #000000">Account</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" style="border-bottom: 1px solid #000000">Officer</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000">Initials</TD>
</TR>


<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD align="center" valign="top"><FONT style="white-space: nowrap">$6,597,500.00</FONT>
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top" nowrap>07-09-2008
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top" nowrap>07-09-2011
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top"><FONT style="white-space: nowrap">05500412-10</FONT>
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">6/21
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">053</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body --></TABLE>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 10pt">References in the boxes above are for Lender&#146;s use only and do not limit the applicability of this
document to any particular loan or item. Any item above containing &#147;***&#148; has been omitted due to
text length limitations.
</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head --><TR valign="bottom">
    <TD width="4%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="40%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="35%">&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>Borrower:</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><B>NETREIT, A CALIFORNIA CORPORATION</B></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><B>Lender:</B></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><B>MILE HIGH BANKS</B></TD>
</TR>
<TR valign="bottom" style="padding-top: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top" nowrap><B>365 S. RANCHO SANTA FE ROAD, SUITE 300</B></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><B>DTC BRANCH</B></TD>
</TR>
<TR valign="bottom" style="padding-top: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><B>SAN MARCOS, CA  92078</B></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><B>8400 E. CRESCENT PKWY #150</B></TD>
</TR>
<TR valign="bottom" style="padding-top: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><B>GREENWOOD VILLAGE, CO 80111</B></TD>
</TR>
<TR valign="bottom" style="padding-top: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><B>(303) 221-5100</B></TD>
</TR>
<!-- End Table Body --></TABLE>
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt"><B>THIS BUSINESS LOAN AGREEMENT dated July&nbsp;9, 2008, is made and executed between NETREIT, A
CALIFORNIA CORPORATION (&#147;Borrower&#148;) and MILE HIGH BANKS (&#147;Lender&#148;) on the following terms and
conditions. Borrower has received prior commercial loans from Lender or has applied to Lender
for a commercial loan or loans or other financial accommodations, including those which may be
described on any exhibit or schedule attached to this Agreement. Borrower understands and
agrees that: (A)&nbsp;in granting, renewing, or extending any Loan, Lender is relying upon
Borrower&#146;s representations, warranties, and agreements as set forth in this Agreement; (B)&nbsp;the
granting, renewing, or extending of any Loan by Lender at all times shall be subject to
Lender&#146;s sole judgment and discretion; and (C)&nbsp;all such Loans shall be and remain subject to
the terms and conditions of this Agreement.</B>
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt"><B>TERM. </B>This Agreement shall be effective as of July&nbsp;9, 2008, and shall continue in full force
and effect until such time as all of Borrower&#146;s Loans in favor of Lender have been paid in
full, including principal, interest, costs, expenses, attorneys&#146; fees, and other fees and
charges, or until July&nbsp;9, 2011.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt"><B>ADVANCE AUTHORITY. </B>The following person or persons are authorized to request advances and
authorize payments under the line of credit until Lender receives from Borrower, at Lender&#146;s
address shown above, written notice of revocation of such authority: <B>KENNETH W. ELSBERRY,
SECRETARY &#038; CFO of NETREIT, A CALIFORNIA CORPORATION or JACK K. HEILBRON, PRESIDENT OF
NETREIT, A CALIFORNIA CORPORATION.</B>
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt"><B>CONDITIONS PRECEDENT TO EACH ADVANCE. </B>Lender&#146;s obligation to make the initial Advance and each
subsequent Advance under this Agreement shall be subject to the fulfillment to Lender&#146;s
satisfaction of all of the conditions set forth in this Agreement and in the Related
Documents.
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%"><B>Loan Documents. </B>Borrower shall provide to Lender the following documents for the Loan: (1)
the Note; (2) Security Agreements granting to Lender security interests in the Collateral;
(3) financing statements and all other documents perfecting Lender&#146;s Security Interests;
(4)&nbsp;evidence of insurance as required below; (5)&nbsp;together with all such Related Documents
as Lender may require for the Loan; all in form and substance satisfactory to Lender and
Lender&#146;s counsel.
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%"><B>Borrower&#146;s Authorization. </B>Borrower shall have provided in form and substance satisfactory
to Lender properly certified resolutions, duly authorizing the execution and delivery of
this Agreement, the Note and the Related Documents. In addition, Borrower shall have
provided such other resolutions, authorizations, documents and instruments as Lender or its
counsel, may require.
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%"><B>Payment of Fees and Expenses. </B>Borrower shall have paid to Lender all fees, charges, and
other expenses which are then due and payable as specified in this Agreement or any Related
Document.
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%"><B>Representations and Warranties. </B>The representations and warranties set forth in this
Agreement, in the Related Documents, and in any document or certificate delivered to Lender
under this Agreement are true and correct.
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%"><B>No Event of Default. </B>There shall not exist at the time of any Advance a condition which
would constitute an Event of Default under this Agreement or under any Related Document.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt"><B>REPRESENTATIONS AND WARRANTIES. </B>Borrower represents and warrants to Lender, as of the date of
this Agreement, as of the date of each disbursement of loan proceeds, as of the date of any
renewal, extension or modification of any Loan, and at all times any Indebtedness exists:
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%"><B>Organization. </B>Borrower is a corporation for profit which is, and at all times shall be,
duly organized, validly existing, and in good standing under and by virtue of the laws of
the State of California. Borrower is duly authorized to transact business in all other
states in which Borrower is doing business, having obtained all necessary filings,
governmental licenses and approvals for each state in which Borrower is doing business.
Specifically, Borrower is, and at all times shall be, duly qualified as a foreign
corporation in all states in which the failure to so qualify would have a material adverse
effect on its business or financial condition. Borrower has the full power and authority
to own its properties and to transact the business in which it is presently engaged or
presently proposes to engage. Borrower maintains an office at 365 S. RANCHO SANTA FE ROAD,
SUITE 300, SAN MARCOS, CA 92078. Unless Borrower has designated otherwise in writing, the
principal office is the office at which Borrower keeps its books and records including its
records concerning the Collateral. Borrower will notify Lender prior to any change in the
location of Borrower&#146;s state of organization or any change in Borrower&#146;s name. Borrower
shall do all things necessary to preserve and to keep in full force and effect its
existence, rights and privileges, and shall comply with all regulations, rules,
ordinances, statutes, orders and decrees of any governmental or quasi-governmental
authority or court applicable to Borrower and Borrower&#146;s business activities.
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%"><B>Assumed Business Names. </B>Borrower has filed or recorded all documents or filings required
by law relating to all assumed business names used by Borrower. Excluding the name of
Borrower, the following is a complete list of all assumed business names under which
Borrower does business:<b> None.</b>
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%"><B>Authorization. </B>Borrower&#146;s execution, delivery, and performance of this Agreement and all
the Related Documents have been duly authorized by all necessary action by Borrower and do
not conflict with, result in a violation of, or constitute a default under (1)&nbsp;any
provision of (a)&nbsp;Borrower&#146;s articles of incorporation or organization, or bylaws, or (b)
any agreement or other instrument binding upon Borrower or (2)&nbsp;any law, governmental
regulation, court decree, or order applicable to Borrower or to Borrower&#146;s properties.
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%"><B>Financial Information</B>. Each of Borrower&#146;s financial statements supplied to Lender truly and
completely disclosed Borrower&#146;s financial condition as of the date of the statement, and
there has been no material adverse change in Borrower&#146;s financial condition subsequent to
the date of the most recent financial statement supplied to Lender. Borrower has no
material contingent obligations except as disclosed in such financial statements.
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%"><B>Legal Effect. </B>This Agreement constitutes, and any instrument or agreement Borrower is
required to give under this Agreement when delivered will constitute legal, valid, and
binding obligations of Borrower enforceable against Borrower in accordance with their
respective terms.
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%"><B>Properties. </B>Except as contemplated by this Agreement or as previously disclosed in
Borrower&#146;s financial statements or in writing to Lender and as accepted by Lender, and
except for property tax liens for taxes not presently due and payable, Borrower owns and
has good title to all of Borrower&#146;s properties free and clear of all Security Interests,
and has not executed any security documents or financing statements relating to such
properties. All of Borrower&#146;s properties are titled in Borrower&#146;s legal name, and Borrower
has not used or filed a financing statement under any other name for at least the last five
(5)&nbsp;years.
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%"><B>Hazardous Substances. </B>Except as disclosed to and acknowledged by Lender in writing,
Borrower represents and warrants that: (1)&nbsp;During the period of Borrower&#146;s ownership of the
Collateral, there has been no use, generation, manufacture, storage, treatment, disposal,
release or threatened release of any Hazardous Substance by any person on, under, about or
from any of the Collateral. (2) Borrower has no knowledge of, or reason to believe that
there has been (a)&nbsp;any breach or violation of any Environmental Laws; (b)&nbsp;any use,
generation, manufacture, storage, treatment, disposal, release or threatened release of any
Hazardous Substance on, under, about or from the Collateral by any prior owners or
occupants of any of the Collateral; or (c) any actual or threatened litigation or claims of
any kind by any person relating to such matters. (3)&nbsp;Neither Borrower nor any tenant,
contractor, agent or other authorized user of any of the Collateral shall use, generate,
manufacture, store, treat, dispose of or release any Hazardous Substance on, under, about
or from any of the Collateral; and any such activity shall be conducted in compliance with
all applicable federal, state, and local laws, regulations, and ordinances, including
without limitation all Environmental Laws. Borrower authorizes Lender and its agents to
enter upon the Collateral to make such inspections and tests as Lender may deem appropriate
to determine compliance of the Collateral with this section of the Agreement. Any
inspections or tests made by Lender shall be at Borrower&#146;s expense and for Lender&#146;s
purposes only and shall not be construed to create any responsibility or liability on the
part of Lender to Borrower or to any other person. The representations and warranties
contained herein are based on Borrower&#146;s due diligence in investigating the Collateral for
hazardous waste and Hazardous Substances. Borrower hereby (1)&nbsp;releases and waives any
future claims against Lender for indemnity or contribution in the event Borrower becomes
liable for cleanup or other costs under any such laws, and (2)&nbsp;agrees to indemnify, defend,
and hold harmless Lender against any and all claims, losses, liabilities, damages,
penalties, and expenses which Lender may directly or indirectly sustain or suffer resulting
from a breach of this section of the Agreement or as a consequence of any use, generation,
manufacture, storage, disposal, release or threatened release of a hazardous waste or
substance on the Collateral. The provisions of this section of the Agreement, including the
obligation to indemnify and defend, shall survive the payment of the Indebtedness and the
termination, expiration or satisfaction of this Agreement and shall not be affected by
Lender&#146;s acquisition of any interest in any of the Collateral, whether by foreclosure or
otherwise.
</DIV>
<P align="center" style="font-size: 10pt">&nbsp;

<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
</DIV>

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<DIV style="font-family: Helvetica,Arial,sans-serif; margin-left: .25in; width: 7.20in">
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head --><TR valign="bottom">
    <TD width="30%"></TD>
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    <TD width="30%"></TD>
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<!-- Begin Table Body -->
<TR valign="bottom">
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="left" valign="top">&nbsp;
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top"><B>BUSINESS LOAN AGREEMENT</B></TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="left" valign="top"><B>Loan No: 05500412-10</B>
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top"><B>(Continued)</B>
</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top"><B>Page 2</B></TD>
</TR>
<!-- End Table Body --></TABLE>
</DIV>



<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%"><B>Litigation and Claims. </B>No litigation, claim, investigation, administrative proceeding or
similar action (including those for unpaid taxes) against Borrower is pending or
threatened, and no other event has occurred which may materially adversely affect
Borrower&#146;s financial condition or properties, other than litigation, claims, or other
events, if any, that have been disclosed to and acknowledged by Lender in writing.
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%"><B>Taxes. </B>To the best of Borrower&#146;s knowledge, all of Borrower&#146;s tax returns and reports that
are or were required to be filed, have been filed, and all taxes, assessments and other
governmental charges have been paid in full, except those presently being or to be
contested by Borrower in good faith in the ordinary course of business and for which
adequate reserves have been provided.
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%"><B>Lien Priority. </B>Unless otherwise previously disclosed to Lender in writing, Borrower has not
entered into or granted any Security Agreements, or permitted the filing or attachment of
any Security Interests on or affecting any of the Collateral directly or indirectly
securing repayment of Borrower&#146;s Loan and Note, that would be prior or that may in any way
be superior to Lender&#146;s Security Interests and rights in and to such Collateral.
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%"><B>Binding Effect</B>. This Agreement, the Note, all Security Agreements (if any), and all Related
Documents are binding upon the signers thereof, as well as upon their successors,
representatives and assigns, and are legally enforceable in accordance with their
respective terms.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt"><B>AFFIRMATIVE COVENANTS. </B>Borrower covenants and agrees with Lender that, so long as this Agreement
remains in effect, Borrower will:
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%"><B>Notices of Claims and Litigation. </B>Promptly inform Lender in writing of (1)&nbsp;all material
adverse changes in Borrower&#146;s financial condition, and (2)&nbsp;all existing and all threatened
litigation, claims, investigations, administrative proceedings or similar actions affecting
Borrower or any Guarantor which could materially affect the financial condition of Borrower
or the financial condition of any Guarantor.
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%"><B>Financial Records. </B>Maintain its books and records in accordance with GAAP, applied on a
consistent basis, and permit Lender to examine and audit Borrower&#146;s books and records at
all reasonable times.
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%"><B>Financial Statements. </B>Furnish Lender with the following:
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; margin-left: 8%"><B>Annual Statements. </B>As soon as available, but in no event later than thirty (30)&nbsp;days
after the end of each fiscal year, Borrower&#146;s balance sheet and income statement for
the year ended, prepared by Borrower.
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; margin-left: 8%"><B>Tax Returns. </B>As soon as available, but in no event later than thirty (30) days after the
applicable filing date for the tax reporting period ended, Federal and other
governmental tax returns, prepared by a tax professional satisfactory to Lender.
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; margin-left: 8%"><B>Additional Requirements. </B>FINANCIAL REQUIREMENTS RECAP:
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; margin-left: 8%">1. BORROWER&#146;S SIGNED AND DATED AUDITED FINANCIAL STATEMENTS ARE TO BE FURNISHED TO THE
BANK ANNUALLY
BEGINNING 12/31/2008
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; margin-left: 8%">2. BORROWER&#146;S SIGNED AND DATED TAX RETURNS FILED WITH THE INTERNAL REVENUE SERVICE AND
ANY APPLICATION FOR EXTENSION FILED WITH THE INTERNAL REVENUE SERVICE ARE TO BE FURNISHED TO THE BANK AS SOON
AS COMPLETED BUT IN NO EVENT LATER THAN 30 DAYS AFTER FILING, BEGINNING WITH THE 2007 TAX YEAR
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; margin-left: 8%">ADDITIONAL CONDITIONS OF APPROVAL:
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; margin-left: 8%">1. THE LENDER WILL CHARGE A FEE OF 0.125% PER QUARTER ON THE UN-USED PORTION OF THE LOAN. THE
UN-USED PORTION OF THE LOAN WILL BE DETERMINED QUARTERLY AND WILL BE BASED UPON THE LOAN AMOUNT
LESS THE AVERAGE OUTSTANDING PRINCIPAL BALANCE FOR THE QUARTER. THE LENDER WILL NOT CHARGE A
FEE IF THE AVERAGE OUTSTANDING PRINCIPAL BALANCE FOR THE QUARTER IS GREATER THAN $4,630,000.00.
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; margin-left: 8%">2. BORROWER TO PROVIDE THE LENDER WITH QUARTERLY RENT ROLLS ON PROPERTIES LOCATED AT:
1271, 1277, 1283, AND 1295 KELLY JOHNSON BOULEVARD, COLORADO SPRINGS, CO 80920 AND 727
COLORADO BOULEVARD, DENVER, CO 80206.
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; margin-left: 8%">3. BORROWER TO PROVIDE ON AN ANNUAL BASIS PROOF OF PROPERTY TAXES PAID CURRENT ON THE
PROPERTIES LOCATED AT: 1271, 1277, 1283, AND 1295 KELLY JOHNSON BOULEVARD, COLORADO SPRINGS,
CO 80920 AND 727 COLORADO BOULEVARD, DENVER, CO 80206 NO LATER THAN MAY 15, 2009 IF PAID
ANNUALLY OR JULY 15, 2009 IF PAID SEMI-ANNUALLY.
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%">All financial reports required to be provided under this Agreement shall be prepared in
accordance with GAAP, applied on a consistent basis, and certified by Borrower as being true
and correct.
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%"><B>Additional Information. </B>Furnish such additional information and statements, as Lender may
request from time to time.
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%"><B>Insurance. </B>Maintain fire and other risk insurance, public liability insurance, and such
other insurance as Lender may require with respect to Borrower&#146;s properties and
operations, in form, amounts, coverages and with insurance companies acceptable to Lender.
Borrower, upon request of Lender, will deliver to Lender from time to time the policies or
certificates of insurance in form satisfactory to Lender, including stipulations that
coverages will not be cancelled or diminished without at least ten (10)&nbsp;days prior written
notice to Lender. Each insurance policy also shall include an endorsement providing that
coverage in favor of Lender will not be impaired in any way by any act, omission or
default of Borrower or any other person. In connection with all policies covering assets
in which Lender holds or is offered a security interest for the Loans, Borrower will
provide Lender with such lender&#146;s loss payable or other endorsements as Lender may
require.
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%"><B>Insurance Reports. </B>Furnish to Lender, upon request of Lender, reports on each
existing insurance policy showing such information as Lender may reasonably request,
including without limitation the following: (1)&nbsp;the name of the insurer; (2)&nbsp;the risks
insured; (3)&nbsp;the amount of the policy; (4)&nbsp;the properties insured; (5)&nbsp;the then current
property values on the basis of which insurance has been obtained, and the manner of
determining those values; and (6)&nbsp;the expiration date of the policy. In addition, upon
request of Lender (however not more often than annually), Borrower will have an
independent appraiser satisfactory to Lender determine, as applicable, the actual cash
value or replacement cost of any Collateral. The cost of such appraisal shall be paid by
Borrower.
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%"><B>Other Agreements. </B>Comply with all terms and conditions of all other agreements, whether
now or hereafter existing, between Borrower and any other party and notify Lender
immediately in writing of any default in connection with any other such agreements.
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%"><B>Loan Proceeds. </B>Use all Loan proceeds solely for Borrower&#146;s business operations, unless
specifically consented to the contrary by Lender in writing.
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%"><B>Taxes, Charges and Liens</B>. Pay and discharge when due all of its indebtedness and
obligations, including without limitation all assessments, taxes, governmental charges,
levies and liens, of every kind and nature, imposed upon Borrower or its properties, income,
or profits, prior to the date on which penalties would attach, and all lawful claims that,
if unpaid, might become a lien or charge upon any of Borrower&#146;s properties, income, or
profits. Provided however, Borrower will not be required to pay and discharge any such
assessment, tax, charge, levy, lien or claim so long as (1)&nbsp;the legality of the same shall
be contested in good faith by appropriate proceedings, and (2)&nbsp;Borrower shall have
established on Borrower&#146;s books adequate reserves with respect to such contested assessment,
tax, charge, levy, lien, or claim in accordance with GAAP.
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%"><B>Performance. </B>Perform and comply, in a timely manner, with all terms, conditions, and
provisions set forth in this Agreement, in the Related Documents, and in all other
instruments and agreements between Borrower and Lender. Borrower shall notify Lender
immediately in writing of any default in connection with any agreement.
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%"><B>Operations. </B>Maintain executive and management personnel with substantially the same
qualifications and experience as the present executive and management personnel; provide
written notice to Lender of any change in executive and management personnel; conduct its
business affairs in a reasonable and prudent manner.
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%"><B>Environmental Studies. </B>Promptly conduct and complete, at Borrower&#146;s expense, all such
investigations, studies, samplings and testings as may be requested by Lender or any
governmental authority relative to any substance, or any waste or by-product of any
substance defined as toxic or a hazardous substance under applicable federal, state, or
local law, rule, regulation, order or directive, at or affecting any property or any
facility owned, leased or used by Borrower.
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%"><B>Compliance with Governmental Requirements. </B>Comply with all laws, ordinances, and regulations,
now or hereafter in effect, of all governmental authorities applicable to the conduct of
Borrower&#146;s properties, businesses and operations, and to the use or occupancy of the Collateral,
including without limitation, the Americans With Disabilities Act. Borrower may contest in good
faith any such law, ordinance, or regulation and withhold compliance during any proceeding,
including appropriate appeals, so long as Borrower has notified Lender in writing prior to doing
so and so long as, in Lender&#146;s sole opinion, Lender&#146;s interests in the Collateral are not
jeopardized. Lender may require Borrower to post adequate security or a surety bond, reasonably
satisfactory to Lender, to protect Lender&#146;s interest.
</DIV>
<P align="center" style="font-size: 10pt">&nbsp;

<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
</DIV>

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<DIV style="font-family: Helvetica,Arial,sans-serif; margin-left: .25in; width: 7.20in">
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head --><TR valign="bottom">
    <TD width="30%"></TD>
    <TD width="5%"></TD>
    <TD width="30%"></TD>
    <TD width="5%"></TD>
    <TD width="30%"></TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="left" valign="top">&nbsp;
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top"><B>BUSINESS LOAN AGREEMENT</B></TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="left" valign="top"><B>Loan No: 05500412-10</B>
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top"><B>(Continued)</B>
</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top"><B>Page 3</B></TD>
</TR>
<!-- End Table Body --></TABLE>
</DIV>



<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%"><B>Inspection.</B> Permit employees or agents of Lender at any reasonable time to inspect any and all
Collateral for the Loan or Loans and Borrower&#146;s other properties and to examine or audit
Borrower&#146;s books, accounts, and records and to make copies and memoranda of Borrower&#146;s books,
accounts, and records. If Borrower now or at any time hereafter maintains any records
(including without limitation computer generated records and computer software programs for
the generation of such records) in the possession of a third party, Borrower, upon request of
Lender, shall notify such party to permit Lender free access to such records at all reasonable
times and to provide Lender with copies of any records it may request, all at Borrower&#146;s
expense.
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%"><B>Environmental Compliance and Reports. </B>Borrower shall comply in all respects with any and all
Environmental Laws; not cause or permit to exist, as a result of an intentional or
unintentional action or omission on Borrower&#146;s part or on the part of any third party, on
property owned and/or occupied by Borrower, any environmental activity where damage may result
to the environment, unless such environmental activity is pursuant to and in compliance with
the conditions of a permit issued by the appropriate federal, state or local governmental
authorities; shall furnish to Lender promptly and in any event within thirty (30)&nbsp;days after
receipt thereof a copy of any notice, summons, lien, citation, directive, letter or other
communication from any governmental agency or instrumentality concerning any intentional or
unintentional action or omission on Borrower&#146;s part in connection with any environmental
activity whether or not there is damage to the environment and/or other natural resources.
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%"><B>Additional
Assurances.</B> Make, execute and deliver to Lender such promissory notes, mortgages,
deeds of trust, security agreements, assignments, financing statements, instruments, documents
and other agreements as Lender or its attorneys may reasonably request to evidence and secure
the Loans and to perfect all Security Interests.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt"><B>LENDER&#146;S EXPENDITURES. </B>If any action or proceeding is commenced that would materially affect
Lender&#146;s interest in the Collateral or if Borrower fails to comply with any provision of this
Agreement or any Related Documents, including but not limited to Borrower&#146;s failure to discharge
or pay when due any amounts Borrower is required to discharge or pay under this Agreement or any
Related Documents, Lender on Borrower&#146;s behalf may (but shall not be obligated to) take any action
that Lender deems appropriate, including but not limited to discharging or paying all taxes,
liens, security interests, encumbrances and other claims, at any time levied or placed on any
Collateral and paying all costs for insuring, maintaining and preserving any Collateral. All such
expenditures incurred or paid by Lender for such purposes will then bear interest at the rate
charged under the Note from the date incurred or paid by Lender to the date of repayment by
Borrower. All such expenses will become a part of the Indebtedness and, at Lender&#146;s option, will
(A)&nbsp;be payable on demand; (B)&nbsp;be added to the balance of the Note and be apportioned among and be
payable with any installment payments to become due during either (1)&nbsp;the term of any applicable
insurance policy; or (2)&nbsp;the remaining term of the Note; or (C)&nbsp;be treated as a balloon payment
which will be due and payable at the Note&#146;s maturity.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt"><B>NEGATIVE COVENANTS. </B>Borrower covenants and agrees with Lender that while this Agreement is in
effect, Borrower shall not, without the prior written consent of Lender:
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%"><B>Indebtedness and Liens. </B>(1)&nbsp;Except for trade debt incurred in the normal course of business and
indebtedness to Lender contemplated by this Agreement, create, incur or assume indebtedness for
borrowed money, including capital leases, (2)&nbsp;sell, transfer, mortgage, assign, pledge, lease,
grant a security interest in, or encumber any of Borrower&#146;s assets (except as allowed as
Permitted Liens), or (3)&nbsp;sell with recourse any of Borrower&#146;s accounts, except to Lender.
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%"><B>Continuity of Operations. </B>(1)&nbsp;Engage in any business activities substantially different than
those in which Borrower is presently engaged, (2)&nbsp;cease operations, liquidate, merge, transfer,
acquire or consolidate with any other entity, change its name, dissolve or transfer or sell
Collateral out of the ordinary course of business, or (3)&nbsp;pay any dividends on Borrower&#146;s stock
(other than dividends payable in its stock), provided, however that notwithstanding the
foregoing, but only so long as no Event of Default has occurred and is continuing or would
result from the payment of dividends, if Borrower is a &#147;Subchapter S Corporation&#148; (as defined
in the Internal Revenue Code of 1986, as amended), Borrower may pay cash dividends on its stock
to its shareholders from time to time in amounts necessary to enable the shareholders to pay
income taxes and make estimated income tax payments to satisfy their liabilities under federal
and state law which arise solely from their status as Shareholders of a Subchapter S
Corporation because of their ownership of shares of Borrower&#146;s stock, or purchase or retire any
of Borrower&#146;s outstanding shares or alter or amend Borrower&#146;s capital structure.
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%"><B>Loans, Acquisitions and Guaranties. </B>(1)&nbsp;Loan, invest in or advance money or assets to any other
person, enterprise or entity, (2)&nbsp;purchase, create or acquire any interest in any other
enterprise or entity, or (3)&nbsp;incur any obligation as surety or guarantor other than in the
ordinary course of business.
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%"><B>Agreements. </B>Borrower will not enter into any agreement containing any provisions which would be
violated or breached by the performance of Borrower&#146;s obligations under this Agreement or in
connection herewith.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt"><B>CESSATION OF ADVANCES. </B>If Lender has made any commitment to make any Loan to Borrower, whether
under this Agreement or under any other agreement, Lender shall have no obligation to make Loan
Advances or to disburse Loan proceeds if: (A)&nbsp;Borrower or any Guarantor is in default under the
terms of this Agreement or any of the Related Documents or any other agreement that Borrower or
any Guarantor has with Lender; (B)&nbsp;Borrower or any Guarantor dies, becomes incompetent or becomes
insolvent, files a petition in bankruptcy or similar proceedings, or is adjudged a bankrupt; (C)
there occurs a material adverse change in Borrower&#146;s financial condition, in the financial
condition of any Guarantor, or in the value of any Collateral securing any Loan; or (D)&nbsp;any
Guarantor seeks, claims or otherwise attempts to limit, modify or revoke such Guarantor&#146;s guaranty
of the Loan or any other loan with Lender; or (E)&nbsp;Lender in good faith deems itself insecure, even
though no Event of Default shall have occurred.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt"><B>RIGHT OF SETOFF. </B>To the extent permitted by applicable law, Lender reserves a right of setoff in
all Borrower&#146;s accounts with Lender (whether checking, savings, or some other account). This
includes all accounts Borrower holds jointly with someone else and all accounts Borrower may open
in the future. However, this does not include any IRA or Keogh accounts, or any trust accounts for
which setoff would be prohibited by law. Borrower authorizes Lender, to the extent permitted by
applicable law, to charge or setoff all sums owing on the Indebtedness against any and all such
accounts.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt"><B>DEFAULT. </B>Each of the following shall constitute an Event of Default under this Agreement:
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%"><B>Payment Default. </B>Borrower fails to make any payment when due under the Loan.
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%"><B>Other Defaults. </B>Borrower fails to comply with or to perform any other term, obligation,
covenant or condition contained in this Agreement or in any of the Related Documents or to
comply with or to perform any term, obligation, covenant or condition contained in any other
agreement between Lender and Borrower.
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%"><B>Default in Favor of Third Parties. </B>Borrower or any Grantor defaults under any loan, extension
of credit, security agreement, purchase or sales agreement, or any other agreement, in favor of
any other creditor or person that may materially affect any of Borrower&#146;s or any Grantor&#146;s
property or Borrower&#146;s or any Grantor&#146;s ability to repay the Loans or perform their respective
obligations under this Agreement or any of the Related Documents.
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%"><B>False Statements. </B>Any warranty, representation or statement made or furnished to Lender by
Borrower or on Borrower&#146;s behalf under this Agreement or the Related Documents is false or
misleading in any material respect, either now or at the time made or furnished or becomes
false or misleading at any time thereafter.
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%"><B>Insolvency. </B>The dissolution or termination of Borrower&#146;s existence as a going business, the
insolvency of Borrower, the appointment of a receiver for any part of Borrower&#146;s property, any
assignment for the benefit of creditors, any type of creditor workout, or the commencement of
any proceeding under any bankruptcy or insolvency laws by or against Borrower.
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%"><B>Defective Collateralization. </B>This Agreement or any of the Related Documents ceases to be in
full force and effect (including failure of any collateral document to create a valid and
perfected security interest or lien) at any time and for any reason.
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%"><B>Creditor or Forfeiture Proceedings. </B>Commencement of foreclosure or forfeiture proceedings,
whether by judicial proceeding, self-help, repossession or any other method, by any creditor of
Borrower or by any governmental agency against any collateral securing the Loan. This includes
a garnishment of any of Borrower&#146;s accounts, including deposit accounts, with Lender. However,
this Event of Default shall not apply if there is a good faith dispute by Borrower as to the
validity or reasonableness of the claim which is the basis of the creditor or forfeiture
proceeding and if Borrower gives Lender written notice of the creditor or forfeiture proceeding
and deposits with Lender monies or a surety bond for the creditor or forfeiture proceeding, in
an amount determined by Lender, in its sole discretion, as being an adequate reserve or bond
for the dispute.
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%"><B>Events Affecting Guarantor. </B>Any of the preceding events occurs with respect to any Guarantor of
any of the Indebtedness or any Guarantor dies or becomes incompetent, or revokes or disputes the
validity of, or liability under, any Guaranty of the Indebtedness.
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%"><B>Change in Ownership. </B>Any change in ownership of twenty-five percent (25%) or more of the common
stock of Borrower.
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%"><B>Adverse Change. </B>A material adverse change occurs in Borrower&#146;s financial condition, or Lender
believes the prospect of payment or performance of the Loan is impaired.
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%"><B>Insecurity. </B>Lender in good faith believes itself insecure.
</DIV>
<P align="center" style="font-size: 10pt">&nbsp;

<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
</DIV>

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<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
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    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="left" valign="top">&nbsp;
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top"><B>BUSINESS LOAN AGREEMENT</B></TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="left" valign="top"><B>Loan No: 05500412-10</B>
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top"><B>(Continued)</B>
</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top"><B>Page 4</B></TD>
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</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt"><B>EFFECT OF AN EVENT OF DEFAULT. </B>If any Event of Default shall occur, except where otherwise
provided in this Agreement or the Related Documents, all commitments and obligations of Lender
under this Agreement or the Related Documents or any other agreement immediately will terminate
(including any obligation to make further Loan Advances or disbursements), and, at Lender&#146;s
option, all Indebtedness immediately will become due and payable, all without notice of any kind
to Borrower, except that in the case of an Event of Default of the type described in the
&#147;Insolvency&#148; subsection above, such acceleration shall be automatic and not optional. In addition,
Lender shall have all the rights and remedies provided in the Related Documents or available at
law, in equity, or otherwise. Except as may be prohibited by applicable law, all of Lender&#146;s
rights and remedies shall be cumulative and may be exercised singularly or concurrently. Election
by Lender to pursue any remedy shall not exclude pursuit of any other remedy, and an election to
make expenditures or to take action to perform an obligation of Borrower or of any Grantor shall
not affect Lender&#146;s right to declare a default and to exercise its rights and remedies.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt"><B>SUBSEQUENT TRANSACTIONS INVOLVING OTHER COLLATERAL. </B>Except for inventory sold or accounts
collected in the ordinary course of Grantor&#146;s business, or as otherwise provided for in this
Agreement, Grantor shall not sell, offer to sell, or otherwise permit the Collateral to be subject
to any lien, security interest, encumbrance, or charge, other than the security interest provided
for in this Agreement, without the prior written consent of Lender. This includes security
interests even if junior in right to the security interests granted under this agreement. Unless
waived by Lender, all proceeds from any disposition of the Collateral (for whatever reason) shall
be held in trust for Lender and shall not be commingled with any other funds provided however,
this requirement shall not constitute consent by Lender to any sale or other disposition. Upon
receipt, Grantor shall immediately deliver any such proceeds to Lender.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt"><B>SUBSEQUENT TRANSACTIONS INVOLVING REAL ESTATE COLLATERAL. </B>Grantor shall not allow or permit the
real property described in the Deed of Trust to become encumbered by any lien, security interest,
or charge, other than the encumbrance created by the Deed of Trust, without the prior written
consent of the lender. This includes any and all security interests, even if junior in right to
the security interests granted under the Deed of Trust.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt"><B>MISCELLANEOUS PROVISIONS. </B>The following miscellaneous provisions are a part of this Agreement:
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%"><B>Amendments. </B>This Agreement, together with any Related Documents, constitutes the entire
understanding and agreement of the parties as to the matters set forth in this Agreement. No
alteration of or amendment to this Agreement shall be effective unless given in writing and
signed by the party or parties sought to be charged or bound by the alteration or amendment.
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%"><B>Attorneys&#146; Fees; Expenses. </B>Borrower agrees to pay upon demand all of Lender&#146;s reasonable costs
and expenses, including Lender&#146;s attorneys&#146; fees and Lender&#146;s legal expenses, incurred in
connection with the enforcement of this Agreement. Lender may hire or pay someone else to help
enforce this Agreement, and Borrower shall pay the reasonable costs and expenses of such
enforcement. Costs and expenses include Lender&#146;s attorneys&#146; fees and legal expenses whether or
not there is a lawsuit, including attorneys&#146; fees and legal expenses for bankruptcy proceedings
(including efforts to modify or vacate any automatic stay or injunction), appeals, and any
anticipated post-judgment collection services. Borrower also shall pay all court costs and such
additional fees as may be directed by the court.
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%"><B>Caption Headings. </B>Caption headings in this Agreement are for convenience purposes only and are
not to be used to interpret or define the provisions of this Agreement.
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%"><B>Consent to Loan Participation. </B>Borrower agrees and consents to Lender&#146;s sale or transfer,
whether now or later, of one or more participation interests in the Loan to one or more
purchasers, whether related or unrelated to Lender. Lender may provide, without any limitation
whatsoever, to any one or more purchasers, or potential purchasers, any information or
knowledge Lender may have about Borrower or about any other matter relating to the Loan, and
Borrower hereby waives any rights to privacy Borrower may have with respect to such matters.
Borrower additionally waives any and all notices of sale of participation interests, as well as
all notices of any repurchase of such participation interests. Borrower also agrees that the
purchasers of any such participation interests will be considered as the absolute owners of
such interests in the Loan and will have all the rights granted under the participation
agreement or agreements governing the sale of such participation interests. Borrower further
waives all rights of offset or counterclaim that it may have now or later against Lender or
against any purchaser of such a participation interest and unconditionally agrees that either
Lender or such purchaser may enforce Borrower&#146;s obligation under the Loan irrespective of the
failure or insolvency of any holder of any interest in the Loan. Borrower further agrees that
the purchaser of any such participation interests may enforce its interests irrespective of any
personal claims or defenses that Borrower may have against Lender.
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%"><B>Governing Law. This Agreement will be governed by federal law applicable to Lender and, to the
extent not preempted by federal law, the laws of the State of Colorado without regard to its
conflicts of law provisions. This Agreement has been accepted by Lender in the State of
Colorado.</B>
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%"><B>Choice of Venue</B>. If there is a lawsuit, Borrower agrees upon Lender&#146;s request to submit to the
jurisdiction of the courts of BOULDER County, State of Colorado.
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%"><B>No Waiver by Lender. </B>Lender shall not be deemed to have waived any rights under this Agreement
unless such waiver is given in writing and signed by Lender. No delay or omission on the part
of Lender in exercising any right shall operate as a waiver of such right or any other right. A
waiver by Lender of a provision of this Agreement shall not prejudice or constitute a waiver of
Lender&#146;s right otherwise to demand strict compliance with that provision or any other provision
of this Agreement. No prior waiver by Lender, nor any course of dealing between Lender and
Borrower, or between Lender and any Grantor, shall constitute a waiver of any of Lender&#146;s
rights or of any of Borrower&#146;s or any Grantor&#146;s obligations as to any future transactions.
Whenever the consent of Lender is required under this Agreement, the granting of such consent
by Lender in any instance shall not constitute continuing consent to subsequent instances where
such consent is required and in all cases such consent may be granted or withheld in the sole
discretion of Lender.
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%"><B>Notices. </B>Any notice required to be given under this Agreement shall be given in writing, and
shall be effective when actually delivered, when actually received by telefacsimile (unless
otherwise required by law), when deposited with a nationally recognized overnight courier, or,
if mailed, when deposited in the United States mail, as first class, certified or registered
mail postage prepaid, directed to the addresses shown near the beginning of this Agreement. Any
party may change its address for notices under this Agreement by giving formal written notice
to the other parties, specifying that the purpose of the notice is to change the party&#146;s
address. For notice purposes, Borrower agrees to keep Lender informed at all times of
Borrower&#146;s current address. Unless otherwise provided or required by law, if there is more than
one Borrower, any notice given by Lender to any Borrower is deemed to be notice given to all
Borrowers.
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%"><B>Severability. </B>If a court of competent jurisdiction finds any provision of this Agreement to be
illegal, invalid, or unenforceable as to any circumstance, that finding shall not make the
offending provision illegal, invalid, or unenforceable as to any other circumstance. If
feasible, the offending provision shall be considered modified so that it becomes legal, valid
and enforceable. If the offending provision cannot be so modified, it shall be considered
deleted from this Agreement. Unless otherwise required by law, the illegality, invalidity, or
unenforceability of any provision of this Agreement shall not affect the legality, validity or
enforceability of any other provision of this Agreement.
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%"><B>Subsidiaries and Affiliates of Borrower. </B>To the extent the context of any provisions of this
Agreement makes it appropriate, including without limitation any representation, warranty or
covenant, the word &#147;Borrower&#148; as used in this Agreement shall include all of Borrower&#146;s
subsidiaries and affiliates. Notwithstanding the foregoing however, under no circumstances
shall this Agreement be construed to require Lender to make any Loan or other financial
accommodation to any of Borrower&#146;s subsidiaries or affiliates.
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%"><B>Successors and Assigns. </B>All covenants and agreements by or on behalf of Borrower contained in
this Agreement or any Related Documents shall bind Borrower&#146;s successors and assigns and shall
inure to the benefit of Lender and its successors and assigns. Borrower shall not, however,
have the right to assign Borrower&#146;s rights under this Agreement or any interest therein,
without the prior written consent of Lender.
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%"><B>Survival of Representations and Warranties. </B>Borrower understands and agrees that in extending
Loan Advances, Lender is relying on all representations, warranties, and covenants made by
Borrower in this Agreement or in any certificate or other instrument delivered by Borrower to
Lender under this Agreement or the Related Documents. Borrower further agrees that regardless
of any investigation made by Lender, all such representations, warranties and covenants will
survive the extension of Loan Advances and delivery to Lender of the Related Documents, shall
be continuing in nature, shall be deemed made and redated by Borrower at the time each Loan
Advance is made, and shall remain in full force and effect until such time as Borrower&#146;s
Indebtedness shall be paid in full, or until this Agreement shall be terminated in the manner
provided above, whichever is the last to occur.
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%"><B>Time is of the Essence. </B>Time is of the essence
in the performance of this Agreement.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt"><B>DEFINITIONS. </B>The following capitalized words and terms shall have the following meanings when used
in this Agreement. Unless specifically stated to the contrary, all references to dollar amounts
shall mean amounts in lawful money of the United States of America. Words and terms used in the
singular shall include the plural, and the plural shall include the singular, as the context may
require. Words and terms not otherwise defined in this Agreement shall have the meanings
attributed to such terms in the Uniform Commercial Code. Accounting words and terms not otherwise
defined in this Agreement shall have the meanings assigned to them in accordance with generally
accepted accounting principles as in effect on the date of this Agreement:
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%"><B>Advance. </B>The word &#147;Advance&#148; means a disbursement of Loan funds made, or to be made, to
Borrower or on Borrower&#146;s behalf on <I>a </I>line of credit or multiple advance basis under the terms
and conditions of this Agreement.
</DIV>
<P align="center" style="font-size: 10pt">&nbsp;

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</DIV>

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<DIV align="center">
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    <TD>&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="left" valign="top">&nbsp;
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top"><B>BUSINESS LOAN AGREEMENT</B></TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="left" valign="top"><B>Loan No: 05500412-10</B>
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top"><B>(Continued)</B>
</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top"><B>Page 5</B></TD>
</TR>
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</DIV>



<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%"><B>Agreement. </B>The word &#147;Agreement&#148; means this Business Loan Agreement, as this Business Loan
Agreement may be amended or modified from time to time, together with all exhibits and
schedules attached to this Business Loan Agreement from time to time.
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%"><B>Borrower. </B>The word &#147;Borrower&#148; means NETREIT, A CALIFORNIA CORPORATION and includes all
co-signers and co-makers signing the Note and all their successors and assigns.
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%"><B>Collateral. </B>The word &#147;Collateral&#148; means all property and assets granted as collateral
security for a Loan, whether real or personal property, whether granted directly or
indirectly, whether granted now or in the future, and whether granted in the form of a
security interest, mortgage, collateral mortgage, deed of trust, assignment, pledge, crop
pledge, chattel mortgage, collateral chattel mortgage, chattel trust, factor&#146;s lien,
equipment trust, conditional sale, trust receipt, lien, charge, lien or title retention
contract, lease or consignment intended as a security device, or any other security or lien
interest whatsoever, whether created by law, contract, or otherwise.
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%"><B>Environmental Laws. </B>The words &#147;Environmental Laws&#148; mean any and all state, federal and
local statutes, regulations and ordinances relating to the protection of human health or
the environment, including without limitation the Comprehensive Environmental Response,
Compensation, and Liability Act of 1980, as amended, 42 U.S.C. Section&nbsp;9601, et seq.
(&#147;CERCLA&#148;), the Superfund Amendments and Reauthorization Act of 1986, Pub. L. No.&nbsp;99-499
(&#147;SARA&#148;), the Hazardous Materials Transportation Act, 49 U.S.C. Section&nbsp;1801, et seq., the
Resource Conservation and Recovery Act, 42 U.S.C. Section&nbsp;6901, et seq., or other
applicable state or federal laws, rules, or regulations adopted pursuant thereto.
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%"><B>Event of Default. </B>The words &#147;Event of Default&#148; mean any of the events of default set forth
in this Agreement in the default section of this Agreement.
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%"><B>GAAP. </B>The word &#147;GAAP&#148; means generally accepted accounting principles.
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%"><B>Grantor. </B>The word &#147;Grantor&#148; means each and all of the persons or entities granting a
Security Interest in any Collateral for the Loan, including without limitation all
Borrowers granting such a Security Interest.
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%"><B>Guarantor. </B>The word &#147;Guarantor&#148; means any guarantor, surety, or accommodation party of any or
all of the Loan.
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%"><B>Guaranty. </B>The word &#147;Guaranty&#148; means the guaranty from Guarantor to Lender, including
without limitation a guaranty of all or part of the Note.
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%"><B>Hazardous Substances. </B>The words &#147;Hazardous Substances&#148; mean materials that, because of
their quantity, concentration or physical, chemical or infectious characteristics, may
cause or pose a present or potential hazard to human health or the environment when
improperly used, treated, stored, disposed of, generated, manufactured, transported or
otherwise handled. The words &#147;Hazardous Substances&#148; are used in their very broadest sense
and include without limitation any and all hazardous or toxic substances, materials or
waste as defined by or listed under the Environmental Laws. The term &#147;Hazardous Substances&#148;
also includes, without limitation, petroleum and petroleum by-products or any fraction
thereof and asbestos.
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%"><B>Indebtedness. </B>The word &#147;Indebtedness&#148; means the indebtedness evidenced by the Note or
Related Documents, including all principal and interest together with all other
indebtedness and costs and expenses for which Borrower is responsible under this Agreement
or under any of the Related Documents.
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%"><B>Lender. </B>The word &#147;Lender&#148; means MILE HIGH BANKS, its successors and assigns.
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%"><B>Loan. </B>The word &#147;Loan&#148; means any and all loans and financial accommodations from Lender to
Borrower whether now or hereafter existing, and however evidenced, including without
limitation those loans and financial accommodations described herein or described on any
exhibit or schedule attached to this Agreement from time to time.
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%"><B>Note. </B>The word &#147;Note&#148; means the Note executed by NETREIT, A CALIFORNIA CORPORATION in the
principal amount of $6,597,500.00 dated July&nbsp;9, 2008, together with all renewals of,
extensions of, modifications of, refinancings of, consolidations of, and substitutions for
the note or credit agreement.
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%"><B>Permitted Liens. </B>The words &#147;Permitted Liens&#148; mean (1)&nbsp;liens and security interests securing
Indebtedness owed by Borrower to Lender; (2)&nbsp;liens for taxes, assessments, or similar
charges either not yet due or being contested in good faith; (3)&nbsp;liens of materialmen,
mechanics, warehousemen, or carriers, or other like liens arising in the ordinary course of
business and securing obligations which are not yet delinquent; (4)&nbsp;purchase money liens or
purchase money security interests upon or in any property acquired or held by Borrower in
the ordinary course of business to secure indebtedness outstanding on the date of this
Agreement or permitted to be incurred under the paragraph of this Agreement titled
&#147;Indebtedness and Liens&#148;; (5)&nbsp;liens and security interests which, as of the date of this
Agreement, have been disclosed to and approved by the Lender in writing; and (6)&nbsp;those
liens and security interests which in the aggregate constitute an immaterial and
insignificant monetary amount with respect to the net value of Borrower&#146;s assets.
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%"><B>Related Documents. </B>The words &#147;Related Documents&#148; mean all promissory notes, credit
agreements, loan agreements, environmental agreements, guaranties, security agreements,
mortgages, deeds of trust, security deeds, collateral mortgages, and all other instruments,
agreements and documents, whether now or hereafter existing, executed in connection with
the Loan.
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%"><B>Security Agreement. </B>The words &#147;Security Agreement&#148; mean and include without limitation any
agreements, promises, covenants, arrangements, understandings or other agreements, whether
created by law, contract, or otherwise, evidencing, governing, representing, or creating a
Security Interest.
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%"><B>Security Interest. </B>The words &#147;Security Interest&#148; mean, without limitation, any and all
types of collateral security, present and future, whether in the form of a lien, charge,
encumbrance, mortgage, deed of trust, security deed, assignment, pledge, crop pledge,
chattel mortgage, collateral chattel mortgage, chattel trust, factor&#146;s lien, equipment
trust, conditional sale, trust receipt, lien or title retention contract, lease or
consignment intended as a security device, or any other security or lien interest
whatsoever whether created by law, contract, or otherwise.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt"><B>BORROWER ACKNOWLEDGES HAVING READ ALL THE PROVISIONS OF THIS BUSINESS LOAN AGREEMENT AND
BORROWER AGREES TO ITS TERMS. THIS BUSINESS LOAN AGREEMENT IS DATED JULY 9, 2008.</B>
</DIV>
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head --><TR valign="bottom">
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="40%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="40%">&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD colspan="3" valign="top" align="left"><B>BORROWER:</B></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom" style="padding-top: 1px"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom" style="padding-top: 1px">
    <TD colspan="3" valign="top" align="left"><b>NETREIT, A CALIFORNIA CORPORATION</b></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom" style="padding-top: 1px"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom" style="padding-top: 1px">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">By:
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">/s/ Kenneth W. Elsberry
<DIV style="font-size: 1pt; border-top: 1px solid #000000">&nbsp;</DIV>
KENNETH W. ELSBERRY, Secretary &#038; CFO of
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom" style="padding-top: 1px">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">NETREIT, A CALIFORNIA CORPORATION</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom" style="padding-top: 1px"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom" style="padding-top: 1px">
    <TD colspan="3" valign="top" align="left"><B>LENDER:</B></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom" style="padding-top: 1px"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom" style="padding-top: 1px">
    <TD colspan="3" valign="top" align="left"><B>MILE HIGH BANKS</B></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom" style="padding-top: 1px"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom" style="padding-top: 1px">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">By:</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Authorized Signer</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<!-- End Table Body --></TABLE>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 10pt">LASER PRO Lending, Ver. 5.40.00.003 Copr. Harland Financial Solutions, Inc. 1997, 2008.

</DIV>


<DIV align="Center" style="font-size: 10pt; margin-top: 0pt">All Rights Reserved.  &#151; Co l:\CF\LPL\C40.FC TR-1533 PR-8

</DIV>


<P align="center" style="font-size: 10pt">&nbsp;

<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
</DIV>




</BODY>
</HTML>
</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-4.4
<SEQUENCE>3
<FILENAME>c73913exv4w4.htm
<DESCRIPTION>EXHIBIT 4.4
<TEXT>
<HTML>
<HEAD>
<TITLE>Filed by Bowne Pure Compliance</TITLE>
</HEAD>
<BODY bgcolor="#FFFFFF">
<!-- PAGEBREAK -->
<DIV style="font-family: Helvetica,Arial,sans-serif; margin-left: .25in; width: 7.20in">

<DIV align="right" style="font-size: 10pt; margin-top: 10pt"><B>Exhibit&nbsp;4.4</B>
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 10pt"><B>PROMISSORY NOTE</B>
</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head --><TR valign="bottom">
    <TD width="9%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="9%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="9%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="9%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="9%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="9%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="9%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="9%">&nbsp;</TD>
</TR>
<TR style="font-size: 10pt" valign="bottom">
    <TD nowrap align="center" style="border-bottom: 1px solid #000000">Principal</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" style="border-bottom: 1px solid #000000">Loan Date</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" style="border-bottom: 1px solid #000000">Maturity</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" style="border-bottom: 1px solid #000000">Loan No</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" style="border-bottom: 1px solid #000000">Call / Coll</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" style="border-bottom: 1px solid #000000">Account</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" style="border-bottom: 1px solid #000000">Officer</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" style="border-bottom: 1px solid #000000">Initials</TD>
</TR>


<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD align="center" valign="top">$6,597,500.00
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top" nowrap>07-09-2008
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top" nowrap>07-09-2011
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top" nowrap>05500412-10
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">6/21
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">053</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
</TR>
<!-- End Table Body --></TABLE>
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 10pt">References in the boxes above are for Lender&#146;s use only and do not limit the applicability of this document to any particular loan or item.
Any item above containing &#147;***&#148; has been omitted due to text length limitations.
</DIV>
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head --><TR valign="bottom">
    <TD width="10%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="35%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="7%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="35%">&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px"><b>Borrower:</b>
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><b>NETREIT, A CALIFORNIA CORPORATION</b>
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><b>Lender:</b>
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><b>MILE HIGH BANKS</b></TD>
</TR>
<TR valign="bottom" style="padding-top: 1px">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top" nowrap><b>365 S. RANCHO SANTA FE ROAD, SUITE 300</b>
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><b>DTC BRANCH</b></TD>
</TR>
<TR valign="bottom" style="padding-top: 1px">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><b>SAN MARCOS, CA 92078</b>
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><b>8400 E. CRESCENT PKWY #150</b></TD>
</TR>
<TR valign="bottom" style="padding-top: 1px">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><b>GREENWOOD VILLAGE, CO 80111</b></TD>
</TR>
<TR valign="bottom" style="padding-top: 1px">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><b>(303) 221-5100</b></TD>
</TR>
<!-- End Table Body --></TABLE>
</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head --><TR valign="bottom">
    <TD width="30%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="30%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="30%">&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD align="left" valign="top">Principal Amount: $6,597,500.00
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">Interest Rate: 6.250%
</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">Date of Note: July&nbsp;9, 2008</TD>
</TR>
<!-- End Table Body --></TABLE>
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt"><B>PROMISE TO PAY. NETREIT, A CALIFORNIA CORPORATION (&#147;Borrower&#148;) promises to pay to MILE
HIGH BANKS (&#147;Lender&#148;), or order, in lawful money of the United States of America, the
principal amount of Six Million Five Hundred Ninety-seven Thousand Five Hundred &#038; 00/100
Dollars ($6,597,500.00) or so much as may be outstanding, together with interest at the rate
of 6.250% per annum on the unpaid outstanding principal balance of each advance. Interest
shall be calculated from the date of each advance until repayment of each advance. The
interest rate may change under the terms and conditions of the &#147;INTEREST AFTER DEFAULT&#148;
section.</B>
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt"><B>PAYMENT. Borrower will pay this loan in full immediately upon Lender&#146;s demand. If no demand is
made, Borrower will pay this loan in one payment of all outstanding principal plus all accrued
unpaid interest on July&nbsp;9, 2011. In addition, Borrower will pay regular monthly payments of
all accrued unpaid interest due as of each payment date, beginning August&nbsp;9, 2008, with all
subsequent interest payments to be due on the same day of each month after that. Unless
otherwise agreed or required by applicable law, payments will be applied first to any accrued
unpaid interest; then to principal; then to any unpaid collection costs; and then to any late
charges. The annual interest rate for this Note is computed on a 365/360 basis; that is, by
applying the ratio of the annual interest rate over a year of 360&nbsp;days, multiplied by the
outstanding principal balance, multiplied by the actual number of days the principal balance
is outstanding. Borrower will pay Lender at Lender&#146;s address shown above or at such other
place as Lender may designate in writing.</B>
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt"><B>PREPAYMENT; MINIMUM INTEREST CHARGE. </B>Borrower agrees that all loan fees and other prepaid
finance charges are earned fully as of the date of the loan and will not be subject to refund
upon early payment (whether voluntary or as a result of default), except as otherwise required
by law. In any event, even upon full prepayment of this Note, Borrower understands that Lender
is entitled to a <B>minimum interest charge of $25.00. </B>Other than Borrower&#146;s obligation to pay
any minimum interest charge, Borrower may pay without penalty all or a portion of the amount
owed earlier than it is due. Early payments will not, unless agreed to by Lender in writing,
relieve Borrower of Borrower&#146;s obligation to continue to make payments of accrued unpaid
interest. Rather, early payments will reduce the principal balance due. Borrower agrees not to
send Lender payments marked &#147;paid in full&#148;, &#147;without recourse&#148;, or similar language. If
Borrower sends such a payment, Lender may accept it without losing any of Lender&#146;s rights
under this Note, and Borrower will remain obligated to pay any further amount owed to Lender.
All written communications concerning disputed amounts, including any check or other payment
instrument that indicates that the payment constitutes &#147;payment in full&#148; of the amount owed or
that is tendered with other conditions or limitations or as full satisfaction of a disputed
amount must be mailed or delivered to: MILE HIGH BANKS, DTC BRANCH, 8400 E. CRESCENT PKWY
#150, GREENWOOD VILLAGE, CO 80111.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt"><B>LATE CHARGE. </B>If a payment is 11&nbsp;days or more late, Borrower will be charged <B>5.000% of the
unpaid portion of the regularly scheduled payment or $20.00, whichever is greater.</B>
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt"><B>INTEREST AFTER DEFAULT. </B>Upon default, including failure to pay upon final maturity, the
interest rate on this Note shall be increased to 24.000% per annum. However, in no event will
the interest rate exceed the maximum interest rate limitations under applicable law.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt"><B>DEFAULT. </B>Each of the following shall constitute an event of default
(&#147;Event of Default&#148;) under this Note:
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%"><B>Payment Default. </B>Borrower fails to make any payment when due under this Note.
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%"><B>Other Defaults. </B>Borrower fails to comply with or to perform any other term, obligation,
covenant or condition contained in this Note or in any of the related documents or to
comply with or to perform any term, obligation, covenant or condition contained in any
other agreement between Lender and Borrower.
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%"><B>Default in Favor of Third Parties. </B>Borrower or any Grantor defaults under any loan,
extension of credit, security agreement, purchase or sales agreement, or any other
agreement, in favor of any other creditor or person that may materially affect any of
Borrower&#146;s property or Borrower&#146;s ability to repay this Note or perform Borrower&#146;s
obligations under this Note or any of the related documents.
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%"><B>False Statements. </B>Any warranty, representation or statement made or furnished to Lender by
Borrower or on Borrower&#146;s behalf under this Note or the related documents is false or
misleading in any material respect, either now or at the time made or furnished or becomes
false or misleading at any time thereafter.
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%"><B>Insolvency. </B>The dissolution or termination of Borrower&#146;s existence as a going business, the
insolvency of Borrower, the appointment of a receiver for any part of Borrower&#146;s property,
any assignment for the benefit of creditors, any type of creditor workout, or the
commencement of any proceeding under any bankruptcy or insolvency laws by or against
Borrower.
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%"><B>Creditor or Forfeiture Proceedings. </B>Commencement of foreclosure or forfeiture proceedings,
whether by judicial proceeding, self-help, repossession or any other method, by any
creditor of Borrower or by any governmental agency against any collateral securing the
loan. This includes a garnishment of any of Borrower&#146;s accounts, including deposit
accounts, with Lender. However, this Event of Default shall not apply if there is a good
faith dispute by Borrower as to the validity or reasonableness of the claim which is the
basis of the creditor or forfeiture proceeding and if Borrower gives Lender written notice
of the creditor or forfeiture proceeding and deposits with Lender monies or a surety bond
for the creditor or forfeiture proceeding, in an amount determined by Lender, in its sole
discretion, as being an adequate reserve or bond for the dispute.
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%"><B>Events Affecting Guarantor. </B>Any of the preceding events occurs with respect to any
guarantor, endorser, surety, or accommodation party of any of the indebtedness or any
guarantor, endorser, surety, or accommodation party dies or becomes incompetent, or revokes
or disputes the validity of, or liability under, any guaranty of the indebtedness evidenced
by this Note.
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%"><B>Change In Ownership. </B>Any change in ownership of twenty-five percent (25%) or more of the
common stock of Borrower.
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%"><B>Adverse Change. </B>A material adverse change occurs in Borrower&#146;s financial condition, or
Lender believes the prospect of payment or performance of this Note is impaired.
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%"><B>Insecurity. </B>Lender in good faith believes itself insecure.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt"><B>LENDER&#146;S RIGHTS. </B>Upon default, Lender may declare the entire unpaid principal balance under
this Note and all accrued unpaid interest immediately due, and then Borrower will pay that
amount.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt"><B>ATTORNEYS&#146; FEES; EXPENSES. </B>Lender may hire or pay someone else to help collect this Note if
Borrower does not pay. Borrower will pay Lender the reasonable costs of such collection. This
includes, subject to any limits under applicable law, Lender&#146;s attorneys&#146; fees and Lender&#146;s
legal expenses, whether or not there is a lawsuit, including without limitation attorneys&#146; fees
and legal expenses for bankruptcy proceedings (including efforts to modify or vacate any
automatic stay or injunction), and appeals. If not prohibited by applicable law, Borrower also
will pay any court costs, in addition to all other sums provided by law.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt"><B>GOVERNING LAW. This Note will be governed by federal law applicable to Lender and, to the
extent not preempted by federal law, the laws of the State of Colorado without regard to its
conflicts of law provisions. This Note has been accepted by Lender in the State of Colorado.</B>
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt"><B>CHOICE OF VENUE. </B>If there is a lawsuit, Borrower agrees upon Lender&#146;s request to submit to the
jurisdiction of the courts of BOULDER County, State of Colorado.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt"><B>DISHONORED ITEM FEE. </B>Borrower will pay a fee to Lender of $25.00 if Borrower makes a payment on
Borrower&#146;s loan and the check or preauthorized charge with which Borrower pays is later
dishonored.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt"><B>RIGHT OF SETOFF. </B>To the extent permitted by applicable law, Lender reserves a right of setoff
in all Borrower&#146;s accounts with Lender (whether checking, savings, or some other account). This
includes all accounts Borrower holds jointly with someone else and all accounts Borrower may
open in the future. However, this does not include any IRA or Keogh accounts, or any trust
accounts for which setoff would be prohibited by law. Borrower authorizes Lender, to the extent
permitted by applicable law, to charge or setoff all sums owing on the indebtedness against any
and all such accounts.
</DIV>
<P align="center" style="font-size: 10pt">&nbsp;

<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
</DIV>

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<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: Helvetica,Arial,sans-serif; margin-left: .25in; width: 7.20in">
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head --><TR valign="bottom">
    <TD width="30%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="30%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="30%">&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD align="center" valign="top">&nbsp;
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top"><b>PROMISSORY NOTE</b></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="left" valign="top"><b>Loan No: 05500412-10</b>
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top"><b>(Continued)</b>
</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top"><b>Page 2</b></TD>
</TR>
<!-- End Table Body --></TABLE>
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt"><B>LINE OF CREDIT. </B>This Note evidences a revolving line of credit. Advances under this Note may be
requested orally by Borrower or as provided in this paragraph. All oral requests shall be
confirmed in writing on the day of the request. All communications, instructions, or directions
by telephone or otherwise to Lender are to be directed to Lender&#146;s office shown above. The
following person or persons are authorized to request advances and authorize payments under the
line of credit until Lender receives from Borrower, at Lender&#146;s address shown above, written
notice of revocation of such authority: <B>KENNETH W. ELSBERRY, SECRETARY &#038; CFO of NETREIT, A
CALIFORNIA CORPORATION or JACK K. HEILBRON, PRESIDENT OF NETREIT, A CALIFORNIA CORPORATION.</B>
Borrower agrees to be liable for all sums either: (A)&nbsp;advanced in accordance with the
instructions of an authorized person or (B)&nbsp;credited to any of Borrower&#146;s accounts with Lender.
The unpaid principal balance owing on this Note at any time may be evidenced by endorsements on
this Note or by Lender&#146;s internal records, including daily computer print-outs.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt"><B>SUCCESSOR INTERESTS. </B>The terms of this Note shall be binding upon Borrower, and upon Borrower&#146;s
heirs, personal representatives, successors and assigns, and shall inure to the benefit of
Lender and its successors and assigns.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt"><B>GENERAL PROVISIONS. </B>This Note is payable on demand. The inclusion of specific default provisions
or rights of Lender shall not preclude Lender&#146;s right to declare payment of this Note on its
demand. If any part of this Note cannot be enforced, this fact will not affect the rest of the
Note. Lender may delay or forgo enforcing any of its rights or remedies under this Note without
losing them. Borrower and any other person who signs, guarantees or endorses this Note, to the
extent allowed by law, waive presentment, demand for payment, and notice of dishonor. Upon any
change in the terms of this Note, and unless otherwise expressly stated in writing, no party who
signs this Note, whether as maker, guarantor, accommodation maker or endorser, shall be released
from liability. All such parties agree that Lender may renew or extend (repeatedly and for any
length of time) this loan or release any party or guarantor or collateral; or impair, fail to
realize upon or perfect Lender&#146;s security interest in the collateral; and take any other action
deemed necessary by Lender without the consent of or notice to anyone. All such parties also
agree that Lender may modify this loan without the consent of or notice to anyone other than the
party with whom the modification is made. The obligations under this Note are joint and several.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt"><B>PRIOR TO SIGNING THIS NOTE, BORROWER READ AND UNDERSTOOD ALL THE PROVISIONS OF THIS NOTE.
BORROWER AGREES TO THE TERMS OF THE NOTE.</B>
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt"><B>BORROWER ACKNOWLEDGES RECEIPT OF A COMPLETED COPY OF THIS PROMISSORY NOTE.</B>
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt"><B>BORROWER:</B>
</DIV>

<TABLE width="100%" border="0" cellspacing="0" cellpadding="0" style="font-size: 10pt">
<TR>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="35%">&nbsp;</TD>
    <TD width="35%">&nbsp;</TD>
</TR>
<TR>
    <TD colspan="4" align="left"><b>NETREIT, A CALIFORNIA CORPORATION</b><BR>
&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD valign="top" colspan="2">By:&nbsp;&nbsp;</TD>
    <TD colspan="2" style="border-bottom: 1px solid #000000" align="left">/s/ Kenneth W. Elsberry
&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" nowrap  align="left">KENNETH   W.   ELSBERRY,   Secretary &#038; CFO of&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left">NETREIT, A CALIFORNIA CORPORATION&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
</TABLE>

<DIV align="center" style="font-size: 10pt; margin-top: 10pt">LASER PRO Lending, Ver. 5,40,00,003 Corp. Harland Financial Solutions,
 Inc. 1997, 2008.<br> All Rights Reserved. &#151; CO I:\CFI\LPL\G01.FC TR-1533 PR.8
</DIV>



<P align="center" style="font-size: 10pt">&nbsp;

<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
</DIV>



</BODY>
</HTML>
</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-4.5
<SEQUENCE>4
<FILENAME>c73913exv4w5.htm
<DESCRIPTION>EXHIBIT 4.5
<TEXT>
<HTML>
<HEAD>
<TITLE>Filed by Bowne Pure Compliance</TITLE>
</HEAD>
<BODY bgcolor="#FFFFFF">
<!-- PAGEBREAK -->
<DIV style="font-family: Helvetica,Arial,sans-serif; margin-left: .25in; width: 7.20in">

<DIV align="right" style="font-size: 10pt; margin-top: 10pt"><B>Exhibit&nbsp;4.5</B>
</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head --><TR valign="bottom">
    <TD width="61%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="16%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="17%">&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD><DIV style="margin-left:0px; text-indent:-0px"><B>RECORDATION REQUESTED BY:</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="padding-top: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-0px"><b>MILE HIGH BANKS<br>
DTC BRANCH<br>
8400 E. CRESCENT PKWY #150<br>
GREENWOOD VILLAGE, CO 80111</b></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="padding-top: 1px">
    <TD><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="padding-top: 1px">
    <TD><DIV style="margin-left:0px; text-indent:-0px"><B>WHEN RECORDED MAIL TO:</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="padding-top: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-0px"><b>MILE HIGH BANKS<br>
DTC BRANCH<BR>
8400 E. CRESCENT PKWY #150<br>
GREENWOOD VILLAGE, CO 80111</b></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="padding-top: 1px">
    <TD><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="padding-top: 1px">
    <TD><DIV style="margin-left:0px; text-indent:-0px"><B>SEND TAX NOTICES TO:</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="padding-top: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-0px"><b>NETREIT, A CALIFORNIA CORPORATION<BR>
365 S. RANCHO SANTA FE ROAD, SUITE 300<br>
SAN MARCOS, CA 92078</b></DIV></TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="right"><b>FOR RECORDER&#146;S USE ONLY</b></TD>
</TR>
<!-- End Table Body --></TABLE>
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 10pt"><B>DEED OF TRUST</B>
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt"><B>MAXIMUM PRINCIPAL AMOUNT SECURED. </B>The Lien of this Deed of Trust shall not exceed at any one time $6,597,500.00 except
as allowed under applicable Colorado law.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt"><B>THIS DEED OF TRUST is dated July&nbsp;9, 2008, among NETREIT, A CALIFORNIA CORPORATION, whose
address is 365 S. RANCHO SANTA FE ROAD, SUITE 300, SAN MARCOS, CA 92078 (&#147;Grantor&#148;); MILE HIGH
BANKS, whose address is DTC BRANCH, 8400 E. CRESCENT PKWY #150, GREENWOOD VILLAGE, CO 80111
(referred to below sometimes as &#147;Lender&#148; and sometimes as &#147;Beneficiary&#148;); and the Public Trustee
of EL PASO COUNTY County, Colorado (referred to below as &#147;Trustee&#148;).</B>
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt"><B>CONVEYANCE AND GRANT. For valuable consideration, Grantor hereby irrevocably grants, transfers and
assigns to Trustee for the benefit of Lender as Beneficiary </B>all of Grantor&#146;s right, title, and
interest in and to the following described real property, together with all existing or
subsequently erected or affixed buildings, improvements and fixtures; all easements, rights of
way, and appurtenances; all water, water rights and ditch rights (including stock in utilities
with ditch or irrigation rights); and all other rights, royalties, and profits relating to the
real property, including without limitation all minerals, oil, gas, geothermal and similar
matters, <B>(the &#147;Real
Property&#148;) located in EL PASO COUNTY County, State of Colorado:</B>
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%"><B>CONDOMINIUM UNITS 1, 2, 3, AND 4, CHAPEL HILLS EXECUTIVE OFFICE CONDOMINIUMS, ACCORDING TO THE
DECLARATION THEREOF FILED FOR RECORD IN THE RECORDS OF THE OFFICE OF THE CLERK AND RECORDER OF
EL PASO COUNTY, STATE OF COLORADO ON MARCH 13, 2001 UNDER RECEPTION NO. 201030430, AND AS
DEFINED AND DESCRIBED IN THE CONDOMINIUM MAPS FOR CHAPEL HILLS EXECUTIVE OFFICE CONDOMINIUMS
RECORDED ON MARCH 13, 2001 UNDER RECEPTION NO. 201030429 AND NOVEMBER 29, 2001 UNDER RECEPTION
NO. 201174298, IN SAID RECORDS, COUNTY OF EL PASO, STATE OF COLORADO.</B>
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt"><B>The Real Property or its address is commonly known
as 1271, 1277, 1283, AND 1295 KELLY JOHNSON BOULEVARD, COLORADO SPRINGS, CO 80920.</B>
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt"><B>CROSS-COLLATERALIZATION. </B>In addition to the Note, this Deed of Trust secures all obligations,
debts and liabilities, plus interest thereon, of Grantor to Lender, or any one or more of them, as
well as all claims by Lender against Grantor or any one or more of them, whether now existing or
hereafter arising, whether related or unrelated to the purpose of the Note, whether voluntary or
otherwise, whether due or not due, direct or indirect, determined or undetermined, absolute or
contingent, liquidated or unliquidated, whether Grantor may be liable individually or jointly with
others, whether obligated as guarantor, surety, accommodation party or otherwise, and whether
recovery upon such amounts may be or hereafter may become barred by any statute of limitations,
and whether the obligation to repay such amounts may be or hereafter may become otherwise
unenforceable.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt"><B>REVOLVING LINE OF CREDIT. This Deed of Trust secures the Indebtedness including, without
limitation, a revolving line of credit, which obligates Lender to make advances to Grantor so long
as Grantor complies with all the terms of the Note.</B>
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt">Grantor presently assigns to Lender (also known as Beneficiary in this Deed of Trust) all of
Grantor&#146;s right, title, and interest in and to all present and future leases of the Property and
all Rents from the Property. In addition, Grantor grants to Lender a Uniform Commercial Code
security interest in the Personal Property and Rents.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt"><B>THIS DEED OF TRUST, INCLUDING THE ASSIGNMENT OF RENTS AND THE SECURITY INTEREST IN THE RENTS AND
PERSONAL PROPERTY, IS GIVEN TO SECURE (A)&nbsp;PAYMENT OF THE INDEBTEDNESS AND (B)&nbsp;PERFORMANCE OF ANY
AND ALL OBLIGATIONS UNDER THE NOTE, THE RELATED DOCUMENTS, AND THIS DEED OF TRUST. THIS DEED OF
TRUST IS GIVEN AND ACCEPTED ON THE FOLLOWING TERMS:</B>
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt"><B>PAYMENT AND PERFORMANCE. </B>Except as otherwise provided in this Deed of Trust, Grantor shall pay to
Lender all amounts secured by this Deed of Trust as they become due, and shall strictly and in a
timely manner perform all of Grantor&#146;s obligations under the Note, this Deed of Trust, and the
Related Documents.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt"><B>POSSESSION AND MAINTENANCE OF THE PROPERTY. </B>Grantor agrees that Grantor&#146;s possession and use of
the Property shall be governed by the following provisions:
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%"><B>Possession and Use. </B>Until the occurrence of an Event of Default, Grantor may (1)&nbsp;remain in
possession and control of the Property; (2)&nbsp;use, operate or manage the Property; and (3)
collect the Rents from the Property.
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%"><B>Duty to Maintain. </B>Grantor shall maintain the Property in tenantable condition and promptly
perform all repairs, replacements, and maintenance necessary to preserve its value.
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%"><B>Compliance With Environmental Laws. </B>Grantor represents and warrants to Lender that: (1)&nbsp;During
the period of Grantor&#146;s ownership of the Property, there has been no use, generation,
manufacture, storage, treatment, disposal, release or threatened release of any Hazardous
Substance by any person on, under, about or from the Property; (2)&nbsp;Grantor has no knowledge of,
or reason to believe that there has been, except as previously disclosed to and acknowledged by
Lender in writing, (a)&nbsp;any breach or violation of any Environmental Laws, (b)&nbsp;any use,
generation, manufacture, storage, treatment, disposal, release or threatened release of any
Hazardous Substance on, under, about or from the Property by any prior owners or occupants of
the Property, or (c)&nbsp;any actual or threatened litigation or claims of any kind by any person
relating to such matters; and (3) Except as previously disclosed to and acknowledged by Lender
in writing, (a)&nbsp;neither Grantor nor any tenant, contractor, agent or other authorized user of
the Property shall use, generate, manufacture, store, treat, dispose of or release any
Hazardous Substance on, under, about or from the Property; and (b)&nbsp;any such activity shall be
conducted in compliance with all applicable federal, state, and local laws, regulations and
ordinances, including without limitation all Environmental Laws. Grantor authorizes Lender and
its agents to enter upon the Property to make such inspections and tests, at Grantor&#146;s expense,
as Lender may deem appropriate to determine compliance of the Property with this section of the Deed of Trust.
</DIV>

<P align="center" style="font-size: 10pt">&nbsp;

<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: Helvetica,Arial,sans-serif; margin-left: .25in; width: 7.20in">
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head --><TR valign="bottom">
    <TD width="30%"></TD>
    <TD width="5%"></TD>
    <TD width="30%"></TD>
    <TD width="5%"></TD>
    <TD width="30%"></TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD align="left" valign="top">&nbsp;
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top"><B>DEED OF TRUST</B></TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="left" valign="top"><B>Loan No: 05500412-10</B>
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top"><B>(Continued)</B>
</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top"><B>Page 2</B></TD>
</TR>
<!-- End Table Body --></TABLE>
</DIV>



<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%">Any inspections or
tests made by Lender shall be for Lender&#146;s purposes only and shall not be construed to create
any responsibility or liability on the part of Lender to Grantor or to any other person. The
representations and warranties contained herein are based on Grantor&#146;s due diligence in
investigating the Property for Hazardous Substances. Grantor hereby (1)&nbsp;releases and waives any
future claims against Lender for indemnity or contribution in the event Grantor becomes liable
for cleanup or other costs under any such laws; and (2)&nbsp;agrees to indemnify, defend, and hold
harmless Lender against any and all claims, losses, liabilities, damages, penalties, and
expenses which Lender may directly or indirectly sustain or suffer resulting from a breach of
this section of the Deed of Trust or as a consequence of any use, generation, manufacture,
storage, disposal, release or threatened release occurring prior to Grantor&#146;s ownership or
interest in the Property, whether or not the same was or should have been known to Grantor. The
provisions of this section of the Deed of Trust, including the obligation to indemnify and
defend, shall survive the payment of the Indebtedness and the satisfaction and reconveyance of
the lien of this Deed of Trust and shall not be affected by Lender&#146;s acquisition of any
interest in the Property, whether by foreclosure or otherwise.
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%"><B>Nuisance, Waste. </B>Grantor shall not cause, conduct or permit any nuisance nor commit, permit, or
suffer any stripping of or waste on or to the Property or any portion of the Property. Without
limiting the generality of the foregoing, Grantor will not remove, or grant to any other party
the right to remove, any timber, minerals (including oil and gas), coal, clay, scoria, soil,
gravel or rock products without Lender&#146;s prior written consent.
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%"><B>Removal of Improvements. </B>Grantor shall not demolish or remove any Improvements from the Real
Property without Lender&#146;s prior written consent. As a condition to the removal of any
Improvements, Lender may require Grantor to make arrangements satisfactory to Lender to replace
such Improvements with Improvements of at least equal value.
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%"><B>Lender&#146;s Right to Enter.</B> Lender and Lender&#146;s agents and representatives may enter upon the Real
Property at all reasonable times to attend to Lender&#146;s interests and to inspect the Real
Property for purposes of Grantor&#146;s compliance with the terms and conditions of this Deed of
Trust.
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%"><B>Compliance with Governmental Requirements. </B>Grantor shall promptly comply with all laws,
ordinances, and regulations, now or hereafter in effect, of all governmental authorities
applicable to the use or occupancy of the Property, including without limitation, the Americans
With Disabilities Act. Grantor may contest in good faith any such law, ordinance, or regulation
and withhold compliance during any proceeding, including appropriate appeals, so long as
Grantor has notified Lender in writing prior to doing so and so long as, in Lender&#146;s sole
opinion, Lender&#146;s interests in the Property are not jeopardized. Lender may require Grantor to
post adequate security or a surety bond, reasonably satisfactory to Lender, to protect Lender&#146;s
interest.
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%"><B>Duty to Protect. </B>Grantor agrees neither to abandon or leave unattended the Property. Grantor
shall do all other acts, in addition to those acts set forth above in this section, which from
the character and use of the Property are reasonably necessary to protect and preserve the
Property.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt"><B>TAXES AND LIENS. </B>The following provisions relating to the taxes and liens on the Property are part
of this Deed of Trust:
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%"><B>Payment. </B>Grantor shall pay when due (and in all events prior to delinquency) all taxes, special
taxes, assessments, charges (including water and sewer), fines and impositions levied against
or on account of the Property, and shall pay when due all claims for work done on or for
services rendered or material furnished to the Property. Grantor shall maintain the Property
free of all liens having priority over or equal to the interest of Lender under this Deed of
Trust, except for the lien of taxes and assessments not due and except as otherwise provided in
this Deed of Trust.
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%"><B>Right to Contest. </B>Grantor may withhold payment of any tax, assessment, or claim in connection
with a good faith dispute over the obligation to pay, so long as Lender&#146;s interest in the
Property is not jeopardized. If a lien arises or is filed as a result of nonpayment, Grantor
shall within fifteen (15)&nbsp;days after the lien arises or, if a lien is filed, within fifteen
(15)&nbsp;days after Grantor has notice of the filing, secure the discharge of the lien, or if
requested by Lender, deposit with Lender cash or a sufficient corporate surety bond or other
security satisfactory to Lender in an amount sufficient to discharge the lien plus any costs
and attorneys&#146; fees, or other charges that could accrue as a result of a foreclosure or sale
under the lien. In any contest, Grantor shall defend itself and Lender and shall satisfy any
adverse judgment before enforcement against the Property. Grantor shall name Lender as an
additional obligee under any surety bond furnished in the contest proceedings.
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%"><B>Evidence of Payment. </B>Grantor shall upon demand furnish to Lender satisfactory evidence of
payment of the taxes or assessments and shall authorize the appropriate governmental official
to deliver to Lender at any time a written statement of the taxes and assessments against the
Property.
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%"><B>Notice of Construction.</B> Grantor shall notify Lender at least fifteen (15)&nbsp;days before any work
is commenced, any services are furnished, or any materials are supplied to the Property, if any
mechanic&#146;s lien, materialmen&#146;s lien, or other lien could be asserted on account of the work,
services, or materials. Grantor  will  upon request of Lender furnish to Lender advance
assurances satisfactory to Lender that Grantor can and will pay the cost of such improvements.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt"><B>PROPERTY DAMAGE INSURANCE. </B>The following provisions relating to insuring the Property are a part
of this Deed of Trust.
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%"><B>Maintenance of Insurance. </B>Grantor shall procure and maintain policies of fire insurance with
standard extended coverage endorsements on a replacement basis for the full insurable value
covering all Improvements on the Real Property in an amount sufficient to avoid application of
any coinsurance clause, and with a standard mortgagee clause in favor of Lender. Grantor shall
also procure and maintain comprehensive general liability insurance in such coverage amounts as
Lender may request with Trustee and Lender being named as additional insureds in such liability
insurance policies. Additionally, Grantor shall maintain such other insurance, including but
not limited to hazard, business interruption, and boiler insurance, as Lender may reasonably
require. Policies shall be written in form, amounts, coverages and basis reasonably acceptable
to Lender and issued by a company or companies reasonably acceptable to Lender. Grantor, upon
request of Lender, will deliver to Lender from time to time the policies or certificates of
insurance in form satisfactory to Lender, including stipulations that coverages will not be
cancelled or diminished without at least ten (10)&nbsp;days prior written notice to Lender. Each
insurance policy also shall include an endorsement providing that coverage in favor of Lender
will not be impaired in any way by any act, omission or default of Grantor or any other person.
Should the Real Property be located in an area designated by the Director of the Federal
Emergency Management Agency as a special flood hazard area, Grantor agrees to obtain and
maintain Federal Flood Insurance, if available, within 45&nbsp;days after notice is given by Lender
that the Property is located in a special flood hazard area, for the full unpaid principal
balance of the loan and any prior liens on the property securing the loan, up to the maximum
policy limits set under the National Flood Insurance Program, or as otherwise required by
Lender, and to maintain such insurance for the term of the loan.
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%"><B>Application of Proceeds. </B>Grantor shall promptly notify Lender of any loss or damage to the
Property. Lender may make proof of loss if Grantor fails to do so within fifteen (15)&nbsp;days of
the casualty. Whether or not Lender&#146;s security is impaired, Lender may, at Lender&#146;s election,
receive and retain the proceeds of any insurance and apply the proceeds to the reduction of the
Indebtedness, payment of any lien affecting the Property, or the restoration and repair of the
Property. If Lender elects to apply the proceeds to restoration and repair, Grantor shall
repair or replace the damaged or destroyed Improvements in a manner satisfactory to Lender.
Lender shall, upon satisfactory proof of such expenditure, pay or reimburse Grantor from the
proceeds for the reasonable cost of repair or restoration if Grantor is not in default under
this Deed of Trust. Any proceeds which have not been disbursed within 180&nbsp;days after their
receipt and which Lender has not committed to the repair or restoration of the Property shall be
used first to pay any amount owing to Lender under this Deed of Trust, then to pay accrued
interest, and the remainder, if any, shall be applied to the principal balance of the
Indebtedness. If Lender holds any proceeds after payment in full of the Indebtedness, such
proceeds shall be paid to Grantor as Grantor&#146;s interests may appear.
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%"><B>Grantor&#146;s Report on Insurance</B>. Upon request of Lender, however not more than once a year.
Grantor shall furnish to Lender a report on each existing policy of insurance showing: (1)&nbsp;the
name of the insurer; (2)&nbsp;the risks insured; (3)&nbsp;the amount of the policy; (4)&nbsp;the property
insured, the then current replacement value of such property, and the manner of determining
that value; and (5)&nbsp;the expiration date of the policy. Grantor shall, upon request of Lender,
have an independent appraiser satisfactory to Lender determine the cash value replacement cost
of the Property.
</DIV>
<P align="center" style="font-size: 10pt">&nbsp;

<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
</DIV>

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<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: Helvetica,Arial,sans-serif; margin-left: .25in; width: 7.20in">
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
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    <TD width="30%"></TD>
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    <TD width="30%"></TD>
    <TD width="5%"></TD>
    <TD width="30%"></TD>
</TR>

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<!-- Begin Table Body -->
<TR valign="bottom">
    <TD align="left" valign="top">&nbsp;
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top"><B>DEED OF TRUST</B></TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="left" valign="top"><B>Loan No: 05500412-10</B>
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top"><B>(Continued)</B>
</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top"><B>Page 3</B></TD>
</TR>
<!-- End Table Body --></TABLE>
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt"><B>LENDER&#146;S EXPENDITURES. </B>If any action or proceeding is commenced that would materially affect
Lender&#146;s interest in the Property or if Grantor fails to comply with any provision of this Deed of
Trust or any Related Documents, including but not limited to Grantor&#146;s failure to discharge or pay
when due any amounts Grantor is required to discharge or pay under this Deed of Trust or any
Related Documents, Lender on Grantor&#146;s behalf may (but shall not be obligated to) take any action
that Lender deems appropriate, including but not limited to discharging or paying all taxes,
liens, security interests, encumbrances and other claims, at any time levied or placed on the
Property and paying all costs for insuring, maintaining and preserving the Property. All such
expenditures incurred or paid by Lender for such purposes will then bear interest at the rate
charged under the Note from the date incurred or paid by Lender to the date of repayment by
Grantor. All such expenses will become a part of the  Indebtedness and, at Lender&#146;s option, will
(A)&nbsp;be payable on demand; (B)&nbsp;be added to the  balance of the Note and be apportioned among and be
payable with any installment payments to become due during either (1)&nbsp;the term of any applicable
insurance policy; or (2)&nbsp;the remaining term of the Note; or (C)&nbsp;be treated as a balloon payment
which will be due and payable at the Note&#146;s maturity. The Deed of Trust also will secure payment
of these amounts. Such right shall be in addition to all other rights and remedies to which Lender
may be entitled upon Default.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt"><B>WARRANTY; DEFENSE OF TITLE. </B>The following provisions relating to ownership of the Property are a
part of this Deed of Trust:
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%"><B>Title.</B> Grantor warrants that: (a)&nbsp;Grantor holds good and marketable title of record to the
Property in fee simple, free and clear of all liens and encumbrances other than those set forth
in the Real Property description or in any title insurance policy, title report, or final title
opinion issued in favor of, and accepted by, Lender in connection with this Deed of Trust, and
(b)&nbsp;Grantor has the full right, power, and authority to execute and deliver this Deed of Trust
to Lender.
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%"><B>Defense of Title. </B>Subject to the exception in the paragraph above, Grantor warrants and will
forever defend the  title to the Property against the lawful claims of all persons. In the
event any action or proceeding is commenced that questions Grantor&#146;s title or the interest of
Trustee or Lender under this Deed of Trust, Grantor shall defend the action at Grantor&#146;s
expense. Grantor may be the nominal party in such proceeding, but Lender shall be entitled to
participate in the proceeding and to be represented in the proceeding by counsel of Lender&#146;s
own choice, and Grantor will deliver, or cause to be delivered, to Lender such instruments as
Lender may request from time to time to permit such participation.
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%"><B>Compliance With Laws. </B>Grantor warrants that the Property and Grantor&#146;s use of the Property
complies with all existing applicable laws, ordinances, and regulations of governmental
authorities.
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%"><B>Survival of Representations and Warranties. </B>All representations, warranties, and agreements
made by Grantor in this Deed of Trust shall survive the execution and delivery of this Deed of
Trust, shall be continuing in nature, and shall remain in full force and effect until such time
as Grantor&#146;s Indebtedness shall be paid in full.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt"><B>CONDEMNATION. </B>The following provisions relating to condemnation proceedings are a part of this
Deed of Trust:
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%"><B>Proceedings. </B>If any proceeding in condemnation is filed, Grantor shall promptly notify Lender
in writing, and Grantor shall promptly take such steps as may be necessary to defend the action
and obtain the award. Grantor may be the nominal party in such proceeding, but Lender shall be
entitled to participate in the proceeding and to be represented in the proceeding by counsel of
its own choice, and Grantor will deliver or cause to be delivered to Lender such instruments
and documentation as may be requested by Lender from time to time to permit such participation.
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%"><B>Application of Net Proceeds. </B>If all or any part of the Property is condemned by eminent domain
proceedings or by any proceeding or purchase in lieu of condemnation, Lender may at its
election require that all or any portion of the net proceeds of the award be applied to the
Indebtedness or the repair or restoration of the  Property. The net proceeds of the award shall
mean the award after payment of all reasonable costs, expenses, and attorneys&#146; fees incurred by
Trustee or Lender in connection with the condemnation.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt"><B>IMPOSITION OF TAXES, FEES AND CHARGES BY GOVERNMENTAL AUTHORITIES. </B>The following provisions
relating to governmental taxes, fees and charges are a part of this Deed of Trust:
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%"><B>Current Taxes, Fees and Charges. </B>Upon request by Lender, Grantor shall execute such documents in
addition to this Deed of Trust and take whatever other action is requested by Lender to perfect
and continue Lender&#146;s lien on the Real Property. Grantor shall reimburse Lender for all taxes,
as described below, together with all expenses incurred in recording, perfecting or continuing
this Deed of Trust, including without limitation all taxes, fees, documentary stamps, and other
charges for recording or registering this Deed of Trust.
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%"><B>Taxes.
</B>The following shall constitute taxes to which this section applies: (1)&nbsp;a specific tax
upon this type of Deed of Trust or upon all or any part of the Indebtedness secured by this
Deed of Trust; (2)&nbsp;a specific tax on Grantor which Grantor is authorized or required to deduct
from payments on the Indebtedness secured by this type of Deed of Trust; (3)&nbsp;a tax on this type
of Deed of Trust chargeable against the Lender or the holder of the Note; and (4)&nbsp;a specific
tax on all or any portion of the Indebtedness or on payments of principal and interest made by
Grantor.
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%"><B>Subsequent Taxes. </B>If any tax to which this section applies is enacted subsequent to the date
of this Deed of Trust, this event shall have the same effect as an Event of Default, and
Lender may exercise any or all of its available remedies for an Event of Default as provided
below unless Grantor either (1)&nbsp;pays the tax before it becomes delinquent, or (2)&nbsp;contests the
tax as provided above in the Taxes and Liens section and deposits with Lender cash or a
sufficient corporate surety bond or other security satisfactory to Lender.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt"><B>SECURITY AGREEMENT; FINANCING STATEMENTS. </B>The following provisions relating to this Deed of Trust
as a security agreement are a part of this Deed of Trust:
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%"><B>Security Agreement. </B>This instrument shall constitute a Security Agreement to the extent any of
the Property constitutes fixtures, and Lender shall have all of the rights of a secured party
under the Uniform Commercial Code as amended from time to time.
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%"><B>Security Interest. </B>Upon request by Lender,
 Grantor shall take whatever action is requested by
Lender to perfect and continue Lender&#146;s security interest in the Rents and Personal Property.
In addition to recording this Deed of Trust in the real property records, Lender may, at any
time and without further authorization from Grantor, file executed counterparts, copies or
reproductions of this Deed of Trust as a financing statement. Grantor shall reimburse Lender
for all expenses incurred in perfecting or continuing this security interest. Upon default,
Grantor shall not remove, sever or detach the Personal Property from the Property. Upon
default, Grantor shall assemble any Personal Property not affixed to the Property in a manner
and at a place reasonably convenient to Grantor and Lender and make it available to Lender
within three (3)&nbsp;days after receipt of written demand from Lender to the extent permitted by
applicable law.
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%"><B>Addresses. </B>The mailing addresses of Grantor (debtor)&nbsp;and Lender (secured party) from which
information concerning the security interest granted by this Deed of Trust may be obtained
(each as required by the Uniform Commercial Code) are as stated on the first page of this Deed
of Trust.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt"><B>FURTHER ASSURANCES; ATTORNEY-IN-FACT. </B>The following provisions relating to further assurances and
attorney-in-fact are a part of this Deed of Trust:
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%"><B>Further Assurances. </B>At any time, and from time to time, upon request of Lender, Grantor will
make, execute and deliver, or will cause to be made, executed or delivered, to Lender or to
Lender&#146;s designee, and when requested by Lender, cause to be filed, recorded, refiled, or
rerecorded, as the case may be, at such times and in such offices and places as Lender may deem
appropriate, any and all such mortgages, deeds of trust, security deeds, security agreements,
financing statements, continuation statements, instruments of further assurance, certificates,
and other documents as may, in the sole opinion of Lender, be necessary or desirable in order
to effectuate, complete, perfect, continue, or preserve (1)&nbsp;Grantor&#146;s obligations under the
Note, this Deed of Trust, and the Related Documents, and (2)&nbsp;the liens and security interests
created by this Deed of Trust as first and prior liens on the Property, whether now owned or
hereafter acquired by Grantor. Unless prohibited by law or Lender agrees to the contrary in
writing, Grantor shall reimburse Lender for all costs and expenses incurred in connection with
the matters referred to in this paragraph.
</DIV>
<P align="center" style="font-size: 10pt">&nbsp;

<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
</DIV>

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<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: Helvetica,Arial,sans-serif; margin-left: .25in; width: 7.20in">
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head --><TR valign="bottom">
    <TD width="30%"></TD>
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</TR>

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<!-- Begin Table Body -->
<TR valign="bottom">
    <TD align="left" valign="top">&nbsp;
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top"><B>DEED OF TRUST</B></TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="left" valign="top"><B>Loan No: 05500412-10</B>
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top"><B>(Continued)</B>
</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top"><B>Page 4</B></TD>
</TR>
<!-- End Table Body --></TABLE>
</DIV>



<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%"><B>Attorney
- -in- Fact. </B>If Grantor fails to do any of the things referred to in the preceding
paragraph, Lender may do so for and in the name of Grantor and at Grantor&#146;s expense. For such
purposes, Grantor hereby irrevocably appoints Lender as Grantor&#146;s attorney-in-fact for the
purpose of making, executing, delivering, filing, recording, and doing all other things as may
be necessary or desirable, in Lender&#146;s sole opinion, to accomplish the matters referred to in
the preceding paragraph.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt"><B>FULL PERFORMANCE. </B>Upon the full performance of all the obligations under the Note and this Deed of
Trust, Trustee may, upon production of documents and fees as required under applicable law,
release this Deed of Trust, and such release shall constitute a release of the lien for all such
additional sums and expenditures made pursuant to this Deed of Trust. Lender agrees to cooperate
with Grantor in obtaining such release and releasing the other
collateral securing the
Indebtedness. Any release fees required by law shall be paid by Grantor, if permitted by
applicable law.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt"><B>EVENTS OF DEFAULT. </B>Each of the following, at Lender&#146;s option, shall constitute an Event of
Default under this Deed of Trust:
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%"><B>Payment Default.</B> Grantor fails to make any payment
when due under the Indebtedness.
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%"><B>Other Defaults. </B>Grantor fails to comply with or to perform any other term, obligation, covenant
or condition contained in this Deed of Trust or in any of the Related Documents or to comply
with or to perform any term, obligation, covenant or condition contained in any other agreement
between Lender and Grantor.
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%"><B>Compliance Default. </B>Failure to comply with any other term, obligation, covenant or condition
contained in this Deed of Trust, the Note or in any of the Related Documents.
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%"><B>Default on Other Payments. </B>Failure of Grantor within the time required by this Deed of Trust to
make any payment for taxes or insurance, or any other payment necessary to prevent filing of or
to effect discharge of any lien.
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%"><B>Default in Favor of Third Parties. </B>Should Grantor default under any loan, extension of credit,
security agreement, purchase or sales agreement, or any other agreement, in favor of any other
creditor or person that may materially affect any of Grantor&#146;s property or Grantor&#146;s ability to
repay the Indebtedness or perform their respective obligations under this Deed of Trust or any
of the Related Documents.
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%"><B>False Statements. </B>Any warranty, representation or statement made or furnished to Lender by
Grantor or on Grantor&#146;s behalf under this Deed of Trust or the Related Documents is false or
misleading in any material respect, either now or at the time made or furnished or becomes
false or misleading at any time thereafter.
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%"><B>Defective Collateralization. </B>This Deed of Trust or any of the Related Documents ceases to be in
full force and effect (including failure of any collateral document to create a valid and
perfected security interest or lien) at any time and for any reason.
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%"><B>Insolvency.</B> The dissolution or termination of Grantor&#146;s existence as a going business, the
insolvency of Grantor, the appointment of a receiver for any part of Grantor&#146;s property, any
assignment for the benefit of creditors, any type of creditor workout, or the commencement of
any proceeding under any bankruptcy or insolvency laws by or against Grantor.
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%"><B>Creditor
or Forfeiture Proceedings. </B>Commencement of foreclosure or forfeiture proceedings,
whether by judicial proceeding, self-help, repossession or any other method, by any creditor of
Grantor or by any governmental agency against any property securing the Indebtedness. This
includes a garnishment of any of Grantor&#146;s accounts, including deposit accounts, with Lender.
However, this Event of Default shall not apply if there is a good faith dispute by Grantor as
to the validity or reasonableness of the claim which is the basis of the creditor or forfeiture
proceeding and if Grantor gives Lender written notice of the creditor or forfeiture proceeding
and deposits with Lender monies or a surety bond for the creditor or forfeiture proceeding, in
an amount determined by Lender, in its sole discretion, as being an adequate reserve or bond
for the dispute.
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%"><B>Breach of Other Agreement. </B>Any breach by Grantor under the terms of any other agreement
between Grantor and Lender that is not remedied within any grace period provided therein,
including without limitation any agreement concerning any indebtedness or other obligation of
Grantor to Lender, whether existing now or later.
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%"><B>Events
Affecting Guarantor. </B>Any of the preceding events occurs with
respect to any guarantor, endorser, surety, or accommodation party of any of the
Indebtedness or any guarantor, endorser, surety, or accommodation party dies or becomes
incompetent, or revokes or disputes the validity of, or liability under, any Guaranty of the
Indebtedness.
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%"><B>Adverse Change. </B>A material adverse change occurs in Grantor&#146;s financial condition, or Lender
believes the prospect of payment or performance of the Indebtedness is impaired.
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%"><B>Insecurity.
</B>Lender in good faith believes itself insecure.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt"><B>RIGHTS
AND REMEDIES ON DEFAULT. </B>If an Event of Default occurs under this Deed of Trust, at any
time thereafter, Trustee or Lender may exercise any one or more of the following rights and
remedies:
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%"><B>Election
of Remedies. </B>Election by Lender to pursue any remedy shall not exclude pursuit of any
other remedy, and an election to make expenditures or to take action to perform an obligation
of Grantor under this Deed of Trust, after Grantor&#146;s failure to
perform, shall not affect
Lender&#146;s right to declare a default and exercise its remedies.
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%"><B>Accelerate Indebtedness. </B>Lender shall have the right at its option without notice to Grantor
to declare the entire Indebtedness immediately due and payable, including any prepayment
penalty which Grantor would be required to pay.
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%"><B>Foreclosure.
</B>Lender shall have the right to cause all or any part of the Real Property, and
Personal Property, if Lender decides to proceed against it as if it were real property, to be
sold by the Trustee according to the laws of the State of Colorado as respects foreclosures
against real property. The Trustee shall give notice in accordance with the laws of
Colorado. The Trustee shall apply the proceeds of the sale in the following order: (a)
to all costs and expenses of the sale, including but not limited to Trustee&#146;s fees, attorneys&#146;
fees, and the cost of title evidence; (b)&nbsp;to all sums secured by
this Deed of Trust; and
(c)&nbsp;the excess, if any, to the person or persons legally entitled to the excess.
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%"><B>UCC
Remedies. </B>With respect to all or any part of the Personal Property, Lender shall have
all the rights and remedies of a
secured party under the Uniform Commercial Code.
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%"><B>Collect
Rents. </B>Lender shall have the right, without notice to Grantor to take possession of
and manage the Property and collect the Rents, including amounts past due and unpaid, and
apply the net proceeds, over and above Lender&#146;s costs, against
the Indebtedness. In furtherance of this right, Lender may require any tenant or other user of the Property to make
payments of rent or use fees directly to Lender. If the Rents are collected by Lender, then
Grantor irrevocably designates Lender as Grantor&#146;s attorney-in-fact to endorse instruments received
in payment thereof in the name of Grantor and to negotiate the same
and collect the proceeds. Payments by tenants or other users to Lender in response to Lender&#146;s
demand shall satisfy the obligations for which the payments are made, whether or not any proper grounds for the demand existed.
Lender may exercise its rights under this subparagraph either in person, by agent, or through a
receiver.
</DIV>


<P align="center" style="font-size: 10pt">&nbsp;

<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
</DIV>



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<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>
<DIV style="font-family: Helvetica,Arial,sans-serif; margin-left: .25in; width: 7.20in">
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head --><TR valign="bottom">
    <TD width="30%"></TD>
    <TD width="5%"></TD>
    <TD width="30%"></TD>
    <TD width="5%"></TD>
    <TD width="30%"></TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="left" valign="top">&nbsp;
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top"><B>DEED OF TRUST</B></TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="left" valign="top"><B>Loan No: 05500412-10</B>
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top"><B>(Continued)</B>
</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top"><B>Page 5</B></TD>
</TR>
<!-- End Table Body --></TABLE>
</DIV>



<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%"><B>Appoint Receiver. </B>Lender shall have the right to have a receiver appointed to take possession
of all or any part of the Property, with the power to protect and preserve the Property, to
operate the Property preceding foreclosure or sale, and to collect the Rents from the
Property and apply the proceeds, over and above the cost of the receivership, against the
Indebtedness. The receiver may serve without bond if permitted by law. Lender&#146;s right to the
appointment of a receiver shall exist whether or not the apparent value of the Property
exceeds the Indebtedness by a substantial amount. Employment by Lender shall not disqualify a
person from serving as a receiver. Receiver may be appointed by a court of competent
jurisdiction upon ex parte application and without notice, notice being expressly waived.
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%"><B>Tenancy at Sufferance. </B>If Grantor remains in possession of the Property after the Property is
sold as provided above or Lender otherwise becomes entitled to possession of the Property upon
default of Grantor, Grantor shall become a tenant at sufferance of Lender or the purchaser of
the Property and shall, at Lender&#146;s option, either (1)&nbsp;pay a reasonable rental for the use of
the Property, or (2)&nbsp;vacate the Property immediately upon the demand of Lender.
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%"><B>Other
Remedies.</B> Trustee or Lender shall have any other right or remedy provided in this Deed
of Trust or the Note or available at law or in equity.
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%"><B>Sale of the Property. </B>In exercising its rights and remedies, Lender shall be free to designate
on or before it files a notice of election and demand with the Trustee, that the Trustee sell
all or any part of the Property together or separately, in one sale or by separate sales.
Lender shall be entitled to bid at any public sale on all or any portion of the Property. Upon
any sale of the Property, whether made under a power of sale granted in this Deed of Trust or
pursuant to judicial proceedings, if the holder of the Note is a purchaser at such sale, it
shall be entitled to use and apply all, or any portion of, the Indebtedness for or in
settlement or payment of all, or any portion of, the purchase price of the Property purchased,
and, in such case, this Deed of Trust, the Note, and any documents evidencing expenditures
secured by this Deed of Trust shall be presented to the person
conducting the sale in order
that the amount of Indebtedness so used or applied may be credited thereon as having been
paid.
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%"><B>Attorneys&#146; Fees; Expenses. </B>If Lender forecloses or institutes any suit or action to enforce any
of the terms of this Deed of Trust, Lender shall be entitled to recover such sum as the court
may adjudge reasonable as attorneys&#146; fees at trial and upon any appeal. Whether or not any
court action is involved, and to the extent not prohibited by law, all reasonable expenses
Lender incurs that in Lender&#146;s opinion are necessary at any time
for the protection of its
interest or the enforcement of its rights shall become a part of the Indebtedness payable on
demand and shall bear interest at the Note rate from the date of the expenditure until repaid.
Expenses covered by this paragraph include, without limitation, however subject to any limits
under applicable law, Lender&#146;s attorneys&#146; fees whether or not there is a lawsuit, including
attorneys&#146; fees and expenses for bankruptcy proceedings (including efforts to modify or vacate
any automatic stay or injunction), appeals, and any anticipated post-judgment collection
services, the cost of searching records, obtaining title reports (including foreclosure
reports), surveyors&#146; reports, and appraisal fees, title
insurance, and fees for the Trustee, to
the extent permitted by applicable law. Grantor also will pay any court costs, in addition to
all other sums provided by law.
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%"><B>Rights of Trustee. </B>To the extent permitted by applicable law, Trustee shall have all of the
rights and duties of Lender as set forth in this section.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt"><B>NOTICES. </B>Any notice required to be given under this Deed of Trust, including without limitation
any notice of default and any notice of sale shall be given in writing, and shall be effective
when actually delivered, when actually received by telefacsimile (unless otherwise required by
law), when deposited with a nationally recognized overnight courier, or, if mailed, when deposited
in the United States mail, as first class, certified or registered mail postage prepaid, directed
to the addresses shown near the beginning of this Deed of Trust. All copies of notices of
foreclosure from the holder of any lien which has priority over this Deed of Trust. shall be sent
to Lender&#146;s address, as shown near the beginning of this Deed of Trust. Any party may change its
address for notices under this Deed of Trust by giving formal written notice to the other parties,
specifying that the purpose of the notice is to change the party&#146;s address. For notice purposes,
Grantor agrees to keep Lender informed at all times of Grantor&#146;s current address. Unless otherwise
provided or required by law, if there is more than one Grantor, any notice given by Lender to any
Grantor is deemed to be notice given to all Grantors.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt"><B>SUBSEQUENT TRANSACTIONS INVOLVING REAL ESTATE. </B>Grantor shall not allow or permit the real property
described in this document to become encumbered by any lien, security interest, or charge, other
than the encumbrance created by this Deed of Trust, without the prior written consent of the
lender. This includes any and all security interests, even if junior in right to the security
interests granted under this Deed of Trust.</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt"> <B>MISCELLANEOUS PROVISIONS.</B> The following miscellaneous
provisions are a part of this Deed of Trust:
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%"><B>Amendments. </B>This Deed of Trust, together with any Related Documents, constitutes the entire
understanding and agreement of the parties as to the matters set forth in this Deed of Trust.
No alteration of or amendment to this Deed of Trust shall be effective unless given in writing
and signed by the party or parties sought to be charged or bound by the alteration or
amendment.
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%"><B>Annual
Reports. </B>If the Property is used for purposes other than Grantor&#146;s residence, Grantor
shall furnish to Lender, upon request, a certified statement of net operating income received
from the Property during Grantor&#146;s previous fiscal year in such form and detail as Lender shall
require. &#147;Net operating income&#148; shall mean all cash receipts from the Property less all cash
expenditures made in connection with the operation of the Property.
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%"><B>Caption
Headings. </B>Caption headings in this Deed of Trust are for convenience purposes only and
are not to be used to interpret or define the provisions of this Deed of Trust.
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%"><B>Merger. </B>There shall be no merger of the interest or estate created by this Deed of Trust with
any other interest or estate in the Property at any time held by or for the benefit of Lender
in any capacity, without the written consent of Lender.
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%"><B>Governing Law. This Deed of Trust will be governed by federal law applicable to Lender and, to
the extent not preempted by federal law, the laws of the State of Colorado without regard to
its conflicts of law provisions. This Deed of Trust has been accepted by Lender in the State of
Colorado.</B>
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%"><B>Choice of Venue. </B>If there is a lawsuit, Grantor agrees upon Lender&#146;s request to submit to the
jurisdiction of the courts of BOULDER County, State of Colorado.
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%"><B>No Waiver by Lender. </B>Lender shall not be deemed to have waived any rights under this Deed of
Trust unless such waiver is given in writing and signed by Lender. No delay or omission on the
part of Lender in exercising any right shall operate as a waiver of such right or any other
right. A waiver by Lender of a provision of this Deed of Trust shall not prejudice or
constitute a waiver of Lender&#146;s right otherwise to demand strict compliance with that provision
or any other provision of this Deed of Trust. No prior waiver by Lender, nor any course of
dealing between Lender and Grantor, shall constitute a waiver of any of Lender&#146;s rights or of
any of Grantor&#146;s obligations as to any future transactions. Whenever the consent of Lender is
required under this Deed of Trust, the granting of such consent by Lender in any instance shall
not constitute continuing consent to subsequent instances where such consent is required and in
all cases such consent may be granted or withheld in the sole discretion of Lender.
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%"><B>Severability. </B>If a court of competent jurisdiction finds any provision of this Deed of Trust to
be illegal, invalid, or unenforceable as to any circumstance, that finding shall not make the
offending provision illegal, invalid, or unenforceable as to any other circumstance. If
feasible, the offending provision shall be considered modified so that it becomes legal, valid
and enforceable. If the offending provision cannot be so modified, it shall be considered
deleted from this Deed of Trust. Unless otherwise required by law, the illegality, invalidity,
or unenforceability of any provision of this Deed of Trust shall not affect the legality,
validity or enforceability of any other provision of this Deed of Trust.
</DIV>
<P align="center" style="font-size: 10pt">&nbsp;

<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
</DIV>

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<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>


<DIV style="font-family: Helvetica,Arial,sans-serif; margin-left: .25in; width: 7.20in">
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head --><TR valign="bottom">
    <TD width="30%"></TD>
    <TD width="5%"></TD>
    <TD width="30%"></TD>
    <TD width="5%"></TD>
    <TD width="30%"></TD>
</TR>

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<!-- Begin Table Body -->
<TR valign="bottom">
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="left" valign="top">&nbsp;
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top"><B>DEED OF TRUST</B></TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="left" valign="top"><B>Loan No: 05500412-10</B>
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top"><B>(Continued)</B>
</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top"><B>Page 6</B></TD>
</TR>
<!-- End Table Body --></TABLE>
</DIV>



<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%"><B>Successors and Assigns. </B>Subject to any limitations stated in this Deed of Trust on transfer of
Grantor&#146;s interest, this Deed of Trust shall be binding upon and inure to the benefit of the
parties, their successors and assigns. If ownership of the Property becomes vested in a person
other than Grantor, Lender, without notice to Grantor, may deal with Grantor&#146;s successors with
reference to this Deed of Trust and the Indebtedness by way of forbearance or extension without
releasing Grantor from the obligations of this Deed of Trust or liability under the
Indebtedness.
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%"><B>Time is of the Essence. </B>Time is of the essence in the performance of this Deed of Trust.
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%"><B>Waiver of Homestead Exemption. </B>Grantor hereby releases and waives all rights and benefits of
the homestead exemption laws of the State of Colorado as to all Indebtedness secured by this
Deed of Trust.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt"><B>DEFINITIONS. </B>The following capitalized words and terms shall have the following meanings when
used in this Deed of Trust. Unless specifically stated to the contrary, all references to dollar
amounts shall mean amounts in lawful money of the United States of America. Words and terms used
in the singular shall include the plural, and the plural shall include the singular, as the
context may require. Words and terms not otherwise defined in this Deed of Trust shall have the
meanings attributed to such terms in the Uniform Commercial Code:
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%"><B>Beneficiary. </B>The word &#147;Beneficiary&#148; means MILE HIGH BANKS, and its successors and assigns.
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%"><B>Borrower. </B>The word &#147;Borrower&#148; means NETREIT, A CALIFORNIA CORPORATION and includes all
co-signers and co-makers signing the Note and all their successors and assigns.
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%"><B>Deed of Trust. </B>The words &#147;Deed of Trust&#148; mean this Deed of Trust among Grantor, Lender, and
Trustee, and includes without limitation all assignment and security interest provisions
relating to the Personal Property and Rents.
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%"><B>Default. </B>The word &#147;Default&#148; means the Default set forth in this Deed of Trust in the section
titled &#147;Default&#148;.
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%"><B>Environmental Laws. </B>The words &#147;Environmental Laws&#148; mean any and all state, federal and local
statutes, regulations and ordinances relating to the protection of human health or the
environment, including without limitation the Comprehensive Environmental Response,
Compensation, and Liability Act of 1980, as amended, 42 U.S.C. Section&nbsp;9601, et seq.
(&#147;CERCLA&#148;), the Superfund Amendments and Reauthorization Act of 1986, Pub. L. No.&nbsp;99-499
(&#147;SARA&#148;), the Hazardous Materials Transportation Act, 49
U.S.C. Section&nbsp;1801, et seq., the Resource Conservation and Recovery Act, 42 U.S.C. Section&nbsp;6901, et seq., or other applicable
state or federal laws, rules, or regulations adopted pursuant thereto.
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%"><B>Event of Default. </B>The words &#147;Event of Default&#148; mean any of the events of default set forth in
this Deed of Trust in the events of default section of this Deed of Trust.
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%"><B>Grantor. </B>The word &#147;Grantor&#148; means NETREIT, A CALIFORNIA CORPORATION.
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%"><B>Guaranty. </B>The word &#147;Guaranty&#148; means the guaranty from guarantor, endorser, surety, or
accommodation party to Lender, including without limitation a guaranty of all or part of the
Note.
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%"><B>Hazardous Substances. </B>The words &#147;Hazardous Substances&#148; mean materials that, because of their
quantity, concentration or physical, chemical or infectious characteristics, may cause or pose
a present or potential hazard to human health or the environment when improperly used, treated,
stored, disposed of, generated, manufactured, transported or otherwise handled. The words
&#147;Hazardous Substances&#148; are used in their very broadest sense and include without limitation any
and all hazardous or toxic substances, materials or waste as defined by or listed under the
Environmental Laws. The term &#147;Hazardous Substances&#148; also Includes, without limitation,
petroleum and petroleum by-products or any fraction thereof and asbestos.
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%"><B>Improvements. </B>The word
&#147;Improvements&#148; means all existing and future improvements, buildings,
structures, mobile homes, affixed on the Real Property, facilities, additions, replacements
and other construction on the Real Property.
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%"><B>Indebtedness. </B>The word &#147;Indebtedness&#148; means all principal, interest, and other amounts, costs
and expenses payable under the Note or Related Documents, together with all renewals of,
extensions of, modifications of, consolidations of and substitutions for the Note or Related
Documents and any amounts expended or advanced by Lender to discharge Grantor&#146;s obligations or
expenses incurred by Trustee or Lender to enforce Grantor&#146;s obligations under this Deed of
Trust, together with interest on such amounts as provided in this Deed of Trust. Specifically,
without limitation, Indebtedness includes all amounts that may be indirectly secured by the Cross-Collateralization provision of this Deed
of Trust.
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%"><B>Lender. </B>The word &#147;Lender&#148; means MILE HIGH BANKS, its successors and assigns.
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%"><B>Note. </B>The word &#147;Note&#148;
means the promissory note dated July&nbsp;9, 2008,<b> in the original principal
amount of $6,597,500.00 </b>from Grantor to Lender, together with all renewals of, extensions of,
modifications of, refinancings of, consolidations of, and substitutions for the promissory
note or agreement. The maturity date of the Note is July&nbsp;9, 2011.
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%"><B>Personal Property. </B>The words &#147;Personal
Property&#148; mean all equipment, fixtures, and other
articles of personal property now or hereafter owned by Grantor, and now or hereafter attached
or affixed to the Real Property; together with all accessions, parts, and additions to, all
replacements of, and all substitutions for, any of such property; and together with all
proceeds (including without limitation all insurance proceeds and refunds of premiums) from
any sale or other disposition of the Property.
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%"><B>Property. </B>The word &#147;Property&#148; means
collectively the Real Property and the Personal Property.
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%"><B>Real Property. </B>The words &#147;Real Property&#148; mean the real property, interests and rights, as
further described in this Deed of Trust.
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%"><B>Related Documents.
</B>The words &#147;Related Documents&#148; mean all promissory notes, credit agreements,
loan agreements, environmental agreements, guaranties, security agreements, mortgages, deeds of
trust, security deeds, collateral mortgages, and all other instruments, agreements and
documents, whether now or hereafter existing, executed in connection with the Indebtedness.
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%"><B>Rents. </B>The word &#147;Rents&#148; means all present and future rents, revenues, income, issues,
royalties, profits, and other benefits derived from the Property.
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%"><B>Trustee. </B>The word &#147;Trustee&#148; means the Public Trustee of EL PASO COUNTY County, Colorado.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt"><B>GRANTOR ACKNOWLEDGES HAVING READ ALL THE PROVISIONS OF THIS DEED OF TRUST, AND GRANTOR AGREES TO
ITS TERMS.</B>
</DIV>
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head --><TR valign="bottom">
    <TD width="2%">&nbsp;</TD>
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    <TD width="1%">&nbsp;</TD>
    <TD width="40%">&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD colspan="3" valign="top" align="left"><B>GRANTOR:</B></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom" style="padding-top: 1px"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom" style="padding-top: 1px">
    <TD colspan="3" valign="top" align="left"><B>NETREIT, A CALIFORNIA CORPORATION</B></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom" style="padding-top: 1px"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom" style="padding-top: 1px">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">By:
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">/s/ Kenneth W. Elsberry</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom" style="padding-top: 1px">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left" valign="top"><DIV style="font-size: 1pt; border-top: 1px solid #000000">&nbsp;</DIV>
KENNETH W. ELSBERRY, Secretary &#038; CFO of
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom" style="padding-top: 1px">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"> NETREIT, A CALIFORNIA CORPORATION</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<!-- End Table Body --></TABLE>
</DIV>


<P align="center" style="font-size: 10pt">&nbsp;

<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
</DIV>

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<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: Helvetica,Arial,sans-serif; margin-left: .25in; width: 7.20in">
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head --><TR valign="bottom">
    <TD width="30%"></TD>
    <TD width="5%"></TD>
    <TD width="30%"></TD>
    <TD width="5%"></TD>
    <TD width="30%"></TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="left" valign="top">&nbsp;
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top"><B>DEED OF TRUST</B></TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="left" valign="top"><B>Loan No: 05500412-10</B>
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top"><B>(Continued)</B>
</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top"><B>Page 7</B></TD>
</TR>
<!-- End Table Body --></TABLE>
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 10pt"><B>CORPORATE ACKNOWLEDGEMENT</B>
</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head --><TR valign="bottom">
    <TD width="5%">&nbsp;</TD>
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    <TD width="10%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="0%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="0%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="30%">&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD valign="top" nowrap><DIV style="margin-left:0px; text-indent:-0px"><B>STATE OF Colorado</B>
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><B>&nbsp;</B>
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top"><B>)</B></TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top" style="border-top: 0px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top"><B>)</B></TD>
    <TD align="left" valign="top" colspan="3">&nbsp;<B>SS</B></TD>
</TR>
<TR valign="bottom" style="padding-top: 1px">
    <TD valign="top" nowrap><DIV style="margin-left:0px; text-indent:-0px"><B>COUNTY OF El Paso</B>
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><B>&nbsp;</B>
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top"><B>)</B></TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top" style="border-top: 0px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<!-- End Table Body --></TABLE>
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt">On this 9th day of July, 2008, before me, the undersigned Notary Public, personally appeared
<B>KENNETH W. ELSBERRY, Secretary &#038; CFO of NETREIT, A CALIFORNIA CORPORATION, </B>and known to me to be an
authorized agent of the corporation that executed the Deed of Trust and acknowledged the Deed of
Trust to be the free and voluntary act and deed of the corporation, by authority of its Bylaws or
by resolution of its board of directors, for the uses and purposes therein mentioned, and on oath
stated that he or she is authorized to execute this Deed of Trust and in fact executed the Deed of
Trust on behalf of the corporation.
</DIV>
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head --><TR valign="bottom">
    <TD width="1%">&nbsp;</TD>
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    <TD width="14%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="16%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="13%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="10%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="8%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="20%">&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom" style="padding-top: 1px"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom" style="padding-top: 1px">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">By
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><b>Residing at</b></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" valign="top" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" valign="top" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom" style="padding-top: 1px">
    <TD colspan="3" valign="top" align="left" nowrap><b>Notary Public in and for the State of</b></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" valign="top" align="left" nowrap><b>My commission expires</b></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top" style="border-top: 1px solid #000000">&nbsp;
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<!-- End Table Body --></TABLE>
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 10pt">LASER PRO Lending, Ver. 5.40.00.003 Copr. Harland Financial Solutions, Inc. 1997, 2008.<BR> All Rights Reserved. &#151; CO
I:\CFI\LPL\G01.FC TR-1533 PR-8
</DIV>



<P align="center" style="font-size: 10pt">&nbsp;

<P align="center" style="font-size: 10pt"><!-- Folio --><!-- /Folio -->
</DIV>





</BODY>
</HTML>
</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-4.6
<SEQUENCE>5
<FILENAME>c73913exv4w6.htm
<DESCRIPTION>EXHIBIT 4.6
<TEXT>
<HTML>
<HEAD>
<TITLE>Filed by Bowne Pure Compliance</TITLE>
</HEAD>
<BODY bgcolor="#FFFFFF">
<!-- PAGEBREAK -->
<DIV style="font-family: Helvetica,Arial,sans-serif; margin-left: .25in; width: 7.20in">

<DIV align="right" style="font-size: 10pt; margin-top: 10pt"><B>Exhibit&nbsp;4.6</B>
</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head --><TR valign="bottom">
    <TD width="70%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="28%">&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px"><B>RECORDATION REQUESTED BY:</B><br>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<B>MILE HIGH BANKS</B><br>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<B>DTC BRANCH</B><br>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<B>8400 E. CRESCENT PKWY #150</B><br>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<B>GREENWOOD VILLAGE, CO 80111</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom" style="padding-top: 1px"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom" style="padding-top: 1px">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px"><B>WHEN RECORDED MAIL TO:</B><br>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<B>MILE HIGH BANKS</B><br>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<B>DTC BRANCH</B><br>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<B>8400 E. CRESCENT PKWY #150</B><br>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<B>GREENWOOD VILLAGE, CO 80111</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom" style="padding-top: 1px"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom" style="padding-top: 1px">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px"><B>SEND TAX NOTICES TO:</B><br>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<B>NETREIT, A CALIFORNIA CORPORATION</B><br>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<B>365 S. RANCHO SANTA FE ROAD, SUITE 300</B><br>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<B>SAN MARCOS, CA 92078</B>
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom"><B>FOR RECORDER&#146;S USE ONLY</B></TD>
</TR>
<!-- End Table Body --></TABLE>
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 10pt"><B>DEED OF TRUST</B>
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt"><B>MAXIMUM PRINCIPAL AMOUNT SECURED. </B>The Lien of this Deed of Trust shall not exceed at any one time
$6,597,500.00 except as allowed under applicable Colorado law.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt"><B>THIS DEED OF TRUST is dated July&nbsp;9, 2008, among NETREIT, A CALIFORNIA CORPORATION, whose address
is 365 S. RANCHO SANTA FE ROAD, SUITE 300, SAN MARCOS, CA 92078 (&#147;Grantor&#148;); MILE HIGH BANKS,
whose address is DTC BRANCH, 8400 E. CRESCENT PKWY #150, GREENWOOD VILLAGE, CO 80111 (referred to
below sometimes as &#147;Lender&#148; and sometimes as &#147;Beneficiary&#148;); and the Public Trustee of DENVER
COUNTY County, Colorado (referred to below as &#147;Trustee&#148;).</B>
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt"><B>CONVEYANCE
AND GRANT. For valuable consideration, Grantor hereby irrevocably grants, transfers and
assigns to Trustee for the benefit of Lender as Beneficiary </B>all of Grantor&#146;s right, title, and
interest in and to the following described real property, together with all existing or
subsequently erected or affixed buildings, improvements and fixtures; all easements, rights of
way, and appurtenances; all water, water rights and ditch rights (including stock in utilities
with ditch or irrigation rights); and all other rights, royalties, and profits relating to the
real property, including without limitation all minerals, oil, gas, geothermal and similar
matters, <B>(the &#147;Real Property&#148;) located in DENVER COUNTY County, State of Colorado:</B>
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%"><B>LOTS 30 THROUGH 35, INCLUSIVE, BLOCK 339, EXCEPT THE REAR 6 FEET AND THE EASTERLY 4 FEET
THEREOF, CAPITOL AVENUE SUBDIVISION, THIRD FILING, CITY AND COUNTY OF DENVER, STATE OF COLORADO</B>
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt"><B>The Real Property or its address is commonly known as 727 COLORADO BOULEVARD, DENVER, CO 80206.</B>
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt"><B>CROSS-COLLATERALIZATION. </B>In addition to the Note, this Deed of Trust secures all obligations,
debts and liabilities, plus interest thereon, of Grantor to Lender, or any one or more of them, as
well as all claims by Lender against Grantor or any one or more of them, whether now existing or
hereafter arising, whether related or unrelated to the purpose of the Note, whether voluntary or
otherwise, whether due or not due, direct or indirect, determined or undetermined, absolute or
contingent, liquidated or unliquidated, whether Grantor may be liable individually or jointly with
others, whether obligated as guarantor, surety, accommodation party or otherwise, and whether
recovery upon such amounts may be or hereafter may become barred by any statute of limitations,
and whether the obligation to repay such amounts may be or hereafter may become otherwise
unenforceable.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt"><B>REVOLVING LINE OF CREDIT. This Deed of Trust secures the Indebtedness including, without
limitation, a revolving line of credit, which obligates Lender to make advances to Grantor so long
as Grantor complies with all the terms of the Note.</B>
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt">Grantor presently assigns to Lender (also known as Beneficiary in this Deed of Trust) all of
Grantor&#146;s right, title, and interest in and to all present and future leases of the Property and
all Rents from the Property. In addition, Grantor grants to Lender a Uniform Commercial Code
security interest in the Personal Property and Rents.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt"><B>THIS DEED OF TRUST, INCLUDING THE ASSIGNMENT OF RENTS AND THE SECURITY INTEREST IN THE RENTS AND
PERSONAL PROPERTY, IS GIVEN TO SECURE (A) PAYMENT OF THE INDEBTEDNESS AND (B)&nbsp;PERFORMANCE OF ANY
AND ALL OBLIGATIONS UNDER THE NOTE, THE RELATED DOCUMENTS, AND THIS DEED OF TRUST. THIS DEED OF
TRUST IS GIVEN AND ACCEPTED ON THE FOLLOWING TERMS:</B>
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt"><B>PAYMENT AND PERFORMANCE. </B>Except as otherwise provided in this Deed of Trust, Grantor shall pay to
Lender all amounts secured by this Deed of Trust as they become due, and shall strictly and in a
timely manner perform all of Grantor&#146;s obligations under the Note, this Deed of Trust, and the
Related Documents.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt"><B>POSSESSION AND MAINTENANCE OF THE PROPERTY. </B>Grantor agrees that Grantor&#146;s possession and use of
the Property shall be governed by the following provisions:
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%"><B>Possession and Use. </B>Until the occurrence of an Event of Default, Grantor may (1)&nbsp;remain in
possession and control of the Property; (2) use, operate or manage the Property; and (3)
collect the Rents from the Property.
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%"><B>Duty to Maintain. </B>Grantor shall maintain the Property in tenantable condition and promptly
perform all repairs, replacements, and maintenance necessary to preserve its value.
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%"><B>Compliance
With Environmental Laws. </B>Grantor represents and warrants to
Lender that: (1) During
the period of Grantor&#146;s ownership of the Property, there has been no use, generation,
manufacture, storage, treatment, disposal, release or threatened release of any Hazardous
Substance by any person on, under, about or from the Property; (2)&nbsp;Grantor has no knowledge of,
or reason to believe that there has been, except as previously disclosed to and acknowledged by
Lender in writing, (a) any breach or violation of any Environmental Laws, (b)&nbsp;any use,
generation, manufacture, storage, treatment, disposal, release or threatened release of any
Hazardous Substance on, under, about or from the Property by any prior owners or occupants of
the Property, or (c) any actual or threatened litigation or claims of any kind by any person
relating to such matters; and (3) Except as previously disclosed to and acknowledged by Lender
in writing, (a) neither Grantor nor any tenant, contractor, agent or other authorized user of
the Property shall use, generate, manufacture, store, treat, dispose of or release any Hazardous
Substance on, under, about or from the Property; and (b)&nbsp;any such activity shall be conducted in
compliance with all applicable federal, state, and local laws, regulations and ordinances,
including without limitation all Environmental Laws. Grantor authorizes Lender and its agents to
enter upon the Property to make such inspections and tests, at Grantor&#146;s expense, as Lender may
deem appropriate to determine compliance of the Property with this section of the Deed of Trust.
Any inspections or tests made by Lender shall be for Lender&#146;s purposes only and shall not be
construed to create any responsibility or liability on the part of Lender to Grantor or to any
other person. The representations and warranties contained herein are based on Grantor&#146;s due
diligence in investigating the Property for Hazardous Substances.
</DIV>
<P align="center" style="font-size: 10pt">&nbsp;

<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: Helvetica,Arial,sans-serif; margin-left: .25in; width: 7.20in">
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head --><TR valign="bottom">
    <TD width="30%"></TD>
    <TD width="5%"></TD>
    <TD width="30%"></TD>
    <TD width="5%"></TD>
    <TD width="30%"></TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom"><!-- Blank Space -->
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="left" valign="top">&nbsp;
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top"><B>DEED OF TRUST</B></TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="left" valign="top"><B>Loan No: 05500412-10</B>
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top"><B>(Continued)</B>
</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top"><B>Page 2</B></TD>
</TR>
<!-- End Table Body --></TABLE>
</DIV>



<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%">Grantor hereby (1)&nbsp;releases
and waives any future claims against Lender for indemnity or contribution in the event Grantor
becomes liable for cleanup or other costs under any such laws; and (2)&nbsp;agrees to indemnify,
defend, and hold harmless Lender against any and all claims, losses, liabilities, damages,
penalties, and expenses which Lender may directly or indirectly sustain or suffer resulting
from a breach of this section of the Deed of Trust or as a consequence of any use, generation,
manufacture, storage, disposal, release or threatened release occurring prior to Grantor&#146;s
ownership or interest in the Property, whether or not the same was or should have been known to
Grantor. The provisions of this section of the Deed of Trust, including the obligation to
indemnify and defend, shall survive the payment of the Indebtedness and the satisfaction and
reconveyance of the lien of this Deed of Trust and shall not be affected by Lender&#146;s
acquisition of any interest in the Property, whether by foreclosure or otherwise.
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%"><B>Nuisance, Waste. </B>Grantor shall not cause, conduct or permit any nuisance nor commit, permit, or
suffer any stripping of or waste on or to the Property or any portion of the Property. Without
limiting the generality of the foregoing, Grantor will not remove, or grant to any other party
the right to remove, any timber, minerals (including oil and gas), coal, clay, scoria, soil,
gravel or rock products without Lender&#146;s prior written consent.
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%"><B>Removal of Improvements. </B>Grantor shall not demolish or remove any Improvements from the Real
Property without Lender&#146;s prior written consent. As a condition to the removal of any
Improvements, Lender may require Grantor to make arrangements satisfactory to Lender to replace
such Improvements with Improvements of at least equal value.
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%"><B>Lender&#146;s Right to Enter. </B>Lender and Lender&#146;s agents and representatives may enter upon the
Real Property at all reasonable times to attend to Lender&#146;s interests and to inspect the Real
Property for purposes of Grantor&#146;s compliance with the terms and conditions of this Deed of
Trust.
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%"><B>Compliance with Governmental Requirements. </B>Grantor shall promptly comply with all laws,
ordinances, and regulations, now or hereafter in effect, of all governmental authorities
applicable to the use or occupancy of the Property, including without limitation, the Americans
With Disabilities Act. Grantor may contest in good faith any such law, ordinance, or regulation
and withhold compliance during any proceeding, including appropriate appeals, so long as
Grantor has notified Lender in writing prior to doing so and so long as, in Lender&#146;s sole
opinion, Lender&#146;s interests in the Property are not jeopardized. Lender may require Grantor to
post adequate security or a surety bond, reasonably satisfactory to Lender, to protect Lender&#146;s
interest.
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%"><B>Duty to Protect. </B>Grantor agrees neither to abandon or leave unattended the Property. Grantor
shall do all other acts, in addition to those acts set forth above in this section, which from
the character and use of the Property are reasonably necessary to protect and preserve the
Property.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt"><B>DUE ON SALE &#151; CONSENT BY LENDER. </B>Lender may, at Lender&#146;s option, declare immediately due and
payable all sums secured by this Deed of Trust upon the sale or transfer, without Lender&#146;s prior
written consent, of all or any part of the Real Property, or any interest in the Real Property. A
&#147;sale or transfer&#148; means the conveyance of Real Property or any right, title or interest in the
Real Property; whether legal, beneficial or equitable; whether voluntary or involuntary; whether
by outright sale, deed, installment sale contract, land contract, contract for deed, leasehold
interest with a term greater than three (3)&nbsp;years, lease-option contract, or by sale, assignment,
or transfer of any beneficial interest in or to any land trust holding title to the Real Property,
or by any other method of conveyance of an interest in the Real Property. If any Grantor is a
corporation, partnership or limited liability company, transfer also includes any change in
ownership of more than twenty-five percent (25%) of the voting stock, partnership interests or
limited liability company interests, as the case may be, of such Grantor. However, this option
shall not be exercised by Lender if such exercise is prohibited by federal law or by Colorado law.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt"><B>TAXES AND LIENS. </B>The following provisions relating to the taxes and liens on the Property are part
of this Deed of Trust:
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%"><B>Payment.
</B>Grantor shall pay when due (and in all events prior to delinquency) all taxes, special
taxes, assessments, charges (including water and sewer), fines and impositions levied against
or on account of the Property, and shall pay when due all claims for work done on or for
services rendered or material furnished to the Property. Grantor shall maintain the Property
free of all liens having priority over or equal to the interest of Lender under this Deed of
Trust, except for the lien of taxes and assessments not due and except as otherwise provided in
this Deed of Trust.
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%"><B>Right to Contest. </B>Grantor may withhold payment of any tax, assessment, or claim in connection
with a good faith dispute over the obligation to pay, so long as Lender&#146;s interest in the
Property is not jeopardized. If a lien arises or is filed as a result
of nonpayment, Grantor
shall within fifteen (15)&nbsp;days after the lien arises or, if a lien is filed, within fifteen
(15)&nbsp;days after Grantor has notice of the filing, secure the discharge of the lien, or if
requested by Lender, deposit with Lender cash or a sufficient corporate surety bond or other
security satisfactory to Lender in an amount sufficient to discharge the lien plus any costs
and attorneys&#146; fees, or other charges that could accrue as a result of a foreclosure or sale
under the lien. In any contest, Grantor shall defend itself and Lender and shall satisfy any
adverse judgment before enforcement against the Property. Grantor shall name Lender as an
additional obligee under any surety bond furnished in the contest proceedings.
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%"><B>Evidence of Payment. </B>Grantor shall upon demand furnish to Lender satisfactory evidence of
payment of the taxes or assessments and shall authorize the appropriate governmental official
to deliver to Lender at any time a written statement of the taxes and assessments against the
Property.
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%"><B>Notice of Construction. </B>Grantor shall notify Lender at least fifteen (15)&nbsp;days before any work is
commenced, any services are furnished, or any materials are supplied to the Property, if any
mechanic&#146;s lien, materialmen&#146;s lien, or other lien could be asserted on account of the work,
services, or materials. Grantor will upon request of Lender furnish to Lender advance assurances
satisfactory to Lender that Grantor can and will pay the cost of such improvements.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt"><B>PROPERTY DAMAGE INSURANCE. </B>The following provisions relating to insuring the Property are a part of this Deed of
Trust.
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%"><B>Maintenance of Insurance. </B>Grantor shall procure and maintain policies of fire insurance with
standard extended coverage endorsements on a replacement basis for the full insurable value
covering all Improvements on the Real Property in an amount sufficient to avoid application of
any coinsurance clause, and with a standard mortgagee clause in favor of Lender. Grantor shall
also procure and maintain comprehensive general liability insurance in such coverage amounts as
Lender may request with Trustee and Lender being named as additional insureds in such liability
insurance policies. Additionally, Grantor shall maintain such other insurance, including but
not limited to hazard, business interruption, and boiler insurance, as Lender may reasonably
require. Policies shall be written in form, amounts, coverages and basis reasonably acceptable
to Lender and issued by a company or companies reasonably acceptable to Lender. Grantor, upon
request of Lender, will deliver to Lender from time to time the policies or certificates of
insurance in form satisfactory to Lender, including stipulations that coverages will not be
cancelled or diminished without at least ten (10)&nbsp;days prior written notice to Lender. Each
insurance policy also shall include an endorsement providing that coverage in favor of Lender
will not be impaired in any way by any act, omission or default of Grantor or any other person.
Should the Real Property be located in an area designated by the Director of the Federal
Emergency Management Agency as a special flood hazard area, Grantor agrees to obtain and
maintain Federal Flood Insurance, if available, within 45&nbsp;days after notice is given by Lender
that the Property is located in a special flood hazard area, for the full unpaid principal
balance of the loan and any prior liens on the property securing the loan, up to the maximum
policy limits set under the National Flood Insurance Program, or as otherwise required by
Lender, and to maintain such insurance for the term of the loan.
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%"><B>Application of Proceeds. </B>Grantor shall promptly notify Lender of any loss or damage to the
Property. Lender may make proof of loss if Grantor fails to do so within fifteen (15)&nbsp;days of
the casualty. Whether or not Lender&#146;s security is impaired, Lender may, at Lender&#146;s election,
receive and retain the proceeds of any insurance and apply the proceeds to the reduction of the
Indebtedness, payment of any lien affecting the Property, or the restoration and repair of the
Property. If Lender elects to apply the proceeds to restoration and
repair, Grantor shall
repair or replace the damaged or destroyed Improvements in a manner satisfactory to Lender.
Lender shall, upon satisfactory proof of such expenditure, pay or reimburse Grantor from the
proceeds for the reasonable cost of repair or restoration if Grantor is not in default under
this Deed of Trust. Any proceeds which have not been disbursed within 180&nbsp;days after their
receipt and which Lender has not committed to the repair or restoration of the Property shall
be used first to pay any amount owing to Lender under this Deed of Trust, then to pay accrued
interest, and the remainder, if any, shall be applied to the principal balance of the
Indebtedness. If Lender holds any proceeds after payment in full of the Indebtedness, such
proceeds shall be paid to Grantor as Grantor&#146;s interests may appear.
</DIV>
<P align="center" style="font-size: 10pt">&nbsp;

<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
</DIV>

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<DIV style="font-family: Helvetica,Arial,sans-serif; margin-left: .25in; width: 7.20in">
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head --><TR valign="bottom">
    <TD width="30%"></TD>
    <TD width="5%"></TD>
    <TD width="30%"></TD>
    <TD width="5%"></TD>
    <TD width="30%"></TD>
</TR>

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<!-- Begin Table Body -->
<TR valign="bottom"><!-- Blank Space -->
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="left" valign="top">&nbsp;
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top"><B>DEED OF TRUST</B></TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="left" valign="top"><B>Loan No: 05500412-10</B>
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top"><B>(Continued)</B>
</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top"><B>Page 3</B></TD>
</TR>
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</DIV>



<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%"><B>Grantor&#146;s Report on Insurance. </B>Upon request of Lender, however not more than once a year,
Grantor shall furnish to Lender a report on each existing policy of insurance showing: (1)&nbsp;the
name of the insurer; (2)&nbsp;the risks insured; (3) the amount of the policy; (4)&nbsp;the property
insured, the then current replacement value of such property, and the manner of determining
that value; and (5)&nbsp;the expiration date of the policy. Grantor shall, upon request of Lender,
have an independent appraiser satisfactory to Lender determine the cash value replacement cost
of the Property.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt"><B>LENDER&#146;S EXPENDITURES. </B>If any action or proceeding is commenced that would materially affect
Lender&#146;s interest in the Property or if Grantor fails to comply with any provision of this Deed of
Trust or any Related Documents, including but not limited to Grantor&#146;s failure to discharge or pay
when due any amounts Grantor is required to discharge or pay under this Deed of Trust or any
Related Documents, Lender on Grantor&#146;s behalf may (but shall not be obligated to) take any action
that Lender deems appropriate, including but not limited to discharging or paying all taxes,
liens, security interests, encumbrances and other claims, at any time levied or placed on the
Property and paying all costs for insuring, maintaining and preserving the Property. All such
expenditures incurred or paid by Lender for such purposes will then bear interest at the rate
charged under the Note from the date incurred or paid by Lender to the date of repayment by
Grantor. All such expenses will become a part of the Indebtedness and, at Lender&#146;s option, will
(A)&nbsp;be payable on demand; (B) be added to the balance of the Note and be apportioned among and be
payable with any installment payments to become due during either (1)&nbsp;the term of any applicable
insurance policy; or (2) the remaining term of the Note; or (C)&nbsp;be treated as a balloon payment
which will be due and payable at the Note&#146;s maturity. The Deed of Trust also will secure payment
of these amounts. Such right shall be in addition to all other rights and remedies to which Lender
may be entitled upon Default.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt"><B>WARRANTY; DEFENSE OF TITLE. </B>The following provisions relating to ownership of the Property are a
part of this Deed of Trust:
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%"><B>Title. </B>Grantor warrants that: (a)&nbsp;Grantor holds good and marketable title of record to the
Property in fee simple, free and clear of all liens and encumbrances other than those set forth
in the Real Property description or in any title insurance policy, title report, or final title
opinion issued in favor of, and accepted by, Lender in connection with this Deed of Trust, and
(b) Grantor has the full right, power, and authority to execute and deliver this Deed of Trust
to Lender.
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%"><B>Defense of Title. </B>Subject to the exception in the paragraph above, Grantor warrants and will
forever defend the title to the Property against the lawful claims of all persons. In the event
any action or proceeding is commenced that questions Grantor&#146;s title or the interest of Trustee
or Lender under this Deed of Trust, Grantor shall defend the action at Grantor&#146;s expense.
Grantor may be the nominal party in such proceeding, but Lender shall be entitled to
participate in the proceeding and to be represented in the proceeding by counsel of Lender&#146;s
own choice, and Grantor will deliver, or cause to be delivered, to Lender such instruments as
Lender may request from time to time to permit such participation.
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%"><B>Compliance With Laws. </B>Grantor warrants that the Property and Grantor&#146;s use of the Property
complies with all existing applicable laws, ordinances, and regulations of governmental
authorities.
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%"><B>Survival of Representations and Warranties. </B>All representations, warranties, and agreements
made by Grantor in this Deed of Trust shall survive the execution and delivery of this Deed of
Trust, shall be continuing in nature, and shall remain in full force and effect until such time
as Grantor&#146;s Indebtedness shall be paid in full.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt"><B>CONDEMNATION. </B>The following provisions relating to condemnation proceedings are a part of this
Deed of Trust:
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%"><B>Proceedings. </B>If any proceeding in condemnation is filed, Grantor shall promptly notify Lender
in writing, and Grantor shall promptly take such steps as may be necessary to defend the action
and obtain the award. Grantor may be the nominal party in such proceeding, but Lender shall be
entitled to participate in the proceeding and to be represented in the proceeding by counsel of
its own choice, and Grantor will deliver or cause to be delivered to Lender such instruments
and documentation as may be requested by Lender from time to time to permit such participation.
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%"><B>Application
of Net Proceeds. </B>If all or any part of the Property is condemned by eminent domain
proceedings or by any proceeding or purchase in lieu of condemnation, Lender may at its
election require that all or any portion of the net proceeds of the award be applied to the
Indebtedness or the repair or restoration of the Property. The net proceeds of the award shall
mean the award after payment of all reasonable costs, expenses, and attorneys&#146; fees incurred by
Trustee or Lender in connection with the condemnation.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt"><B>IMPOSITION OF TAXES, FEES AND CHARGES BY GOVERNMENTAL AUTHORITIES. </B>The following provisions
relating to governmental taxes, fees and charges are a part of this Deed of Trust:
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%"><B>Current Taxes, Fees and Charges. </B>Upon request by Lender, Grantor shall execute such documents
in addition to this Deed of Trust and take whatever other action is requested by Lender to
perfect and continue Lender&#146;s lien on the Real Property. Grantor shall reimburse Lender for all
taxes, as described below, together with all expenses incurred in recording, perfecting or
continuing this Deed of Trust, including without limitation all taxes, fees, documentary
stamps, and other charges for recording or registering this Deed of Trust.
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%"><B>Taxes. </B>The following shall constitute taxes to which this section applies: (1)&nbsp;a specific tax
upon this type of Deed of Trust or upon all or any part of the Indebtedness secured by this
Deed of Trust; (2)&nbsp;a specific tax on Grantor which Grantor is authorized or required to deduct
from payments on the Indebtedness secured by this type of Deed of Trust; (3)&nbsp;a tax on this type
of Deed of Trust chargeable against the Lender or the holder of the
Note; and (4) a specific
tax on all or any portion of the Indebtedness or on payments of principal and interest made by
Grantor.
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%"><B>Subsequent Taxes. </B>If any tax to which this section applies is enacted subsequent to the date
of this Deed of Trust, this event shall have the same effect as an Event of Default, and
Lender may exercise any or all of its available remedies for an Event of Default as provided
below unless Grantor either (1)&nbsp;pays the tax before it becomes delinquent, or (2)&nbsp;contests the
tax as provided above in the Taxes and Liens section and deposits with Lender cash or a
sufficient corporate surety bond or other security satisfactory to Lender.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt"><B>SECURITY AGREEMENT; FINANCING STATEMENTS. </B>The following provisions relating to this Deed of Trust
as a security agreement are a part of this Deed of Trust:
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%"><B>Security Agreement. </B>This instrument shall constitute a Security Agreement to the extent any of
the Property constitutes fixtures, and Lender shall have all of the rights of a secured party
under the Uniform Commercial Code as amended from time to time.
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%"><B>Security Interest. </B>Upon request by Lender, Grantor shall take whatever action is requested by
Lender to perfect and continue Lender&#146;s security interest in the Rents and Personal Property.
In addition to recording this Deed of Trust in the real property records, Lender may, at any
time and without further authorization from Grantor, file executed counterparts, copies or
reproductions of this Deed of Trust as a financing statement. Grantor shall reimburse Lender
for all expenses incurred in perfecting or continuing this security
interest. Upon default,
Grantor shall not remove, sever or detach the Personal Property from the Property. Upon
default, Grantor shall assemble any Personal Property not affixed to the Property in a manner
and at a place reasonably convenient to Grantor and Lender and make it available to Lender
within three (3)&nbsp;days after receipt of written demand from Lender to the extent permitted by
applicable law.
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%"><B>Addresses. </B>The mailing addresses of Grantor (debtor)&nbsp;and Lender (secured party) from which
information concerning the security interest granted by this Deed of Trust may be obtained
(each as required by the Uniform Commercial Code) are as stated on the first page of this Deed
of Trust.
</DIV>
<P align="center" style="font-size: 10pt">&nbsp;

<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
</DIV>

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<DIV style="font-family: Helvetica,Arial,sans-serif; margin-left: .25in; width: 7.20in">
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head --><TR valign="bottom">
    <TD width="30%"></TD>
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    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="left" valign="top">&nbsp;
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top"><B>DEED OF TRUST</B></TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="left" valign="top"><B>Loan No: 05500412-10</B>
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top"><B>(Continued)</B>
</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top"><B>Page 4</B></TD>
</TR>
<!-- End Table Body --></TABLE>
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt"><B>FURTHER ASSURANCES; ATTORNEY-IN-FACT. </B>The following provisions relating to further assurances and
attorney-in-fact are a part of this Deed of Trust:
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%"><B>Further Assurances. </B>At any time, and from time to time, upon request of Lender, Grantor will
make, execute and deliver, or will cause to be made, executed or delivered, to Lender or to
Lender&#146;s designee, and when requested by Lender, cause to be filed, recorded, refiled, or
rerecorded, as the case may be, at such times and in such offices and places as Lender may deem
appropriate, any and all such mortgages, deeds of trust, security deeds, security agreements,
financing statements, continuation statements, instruments of further assurance, certificates,
and other documents as may, in the sole opinion of Lender, be necessary or desirable in order
to effectuate, complete, perfect, continue, or preserve (1)&nbsp;Grantor&#146;s obligations under the
Note, this Deed of Trust, and the Related Documents, and (2) the liens and security interests
created by this Deed of Trust as first and prior liens on the Property, whether now owned or
hereafter acquired by Grantor. Unless prohibited by law or Lender agrees to the contrary in
writing, Grantor shall reimburse Lender for all costs and expenses incurred in connection with
the matters referred to in this paragraph.
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%"><B>Attorney-in-Fact. </B>If Grantor fails to do any of the things referred to in the preceding
paragraph, Lender may do so for and in the name of Grantor and at Grantor&#146;s expense. For such
purposes, Grantor hereby irrevocably appoints Lender as Grantor&#146;s attorney-in-fact for the
purpose of making, executing, delivering, filing, recording, and doing all other things as may
be necessary or desirable, in Lender&#146;s sole opinion, to accomplish the matters referred to in
the preceding paragraph.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt"><B>FULL
PERFORMANCE. </B>Upon the full performance of all the obligations under the Note and this Deed of
Trust, Trustee may, upon production of documents and fees as required under applicable law,
release this Deed of Trust, and such release shall constitute a release of the lien for all such
additional sums and expenditures made pursuant to this Deed of Trust. Lender agrees to cooperate
with Grantor in obtaining such release and releasing the other collateral securing the
Indebtedness. Any release fees required by law shall be paid by Grantor, if permitted by
applicable law.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt"><B>EVENTS OF DEFAULT. </B>Each of the following, at Lender&#146;s option, shall constitute an Event of
Default under this Deed of Trust:
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%"><B>Payment Default. </B>Grantor fails to make any payment
when due under the Indebtedness.
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%"><B>Other Defaults. </B>Grantor fails to comply with or to perform any other term, obligation, covenant
or condition contained in this Deed of Trust or in any of the Related Documents or to comply
with or to perform any term, obligation, covenant or condition contained in any other agreement
between Lender and Grantor.
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%"><B>Compliance Default. </B>Failure to comply with any other term, obligation, covenant or condition
contained in this Deed of Trust, the Note or in any of the Related
Documents.
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%"><B>Default on Other Payments. </B>Failure of Grantor within the time required by this Deed of Trust to
make any payment for taxes or insurance, or any other payment necessary to prevent filing of or
to effect discharge of any lien.
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%"><B>Default in Favor of Third Parties. </B>Should Grantor default under any loan, extension of credit,
security agreement, purchase or sales agreement, or any other agreement, in favor of any other
creditor or person that may materially affect any of Grantor&#146;s property or Grantor&#146;s ability to
repay the Indebtedness or perform their respective obligations under this Deed of Trust or any
of the Related Documents.
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%"><B>False Statements. </B>Any warranty, representation or statement made or furnished to Lender by
Grantor or on Grantor&#146;s behalf under this Deed of Trust or the Related Documents is false or
misleading in any material respect, either now or at the time made or furnished or becomes
false or misleading at any time thereafter.
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%"><B>Defective Collateralization. </B>This Deed of Trust or any of the Related Documents ceases to be in
full force and effect (including failure of any collateral document to create a valid and
perfected security interest or lien) at any time and for any reason.
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%"><B>Insolvency. </B>The dissolution or termination of Grantor&#146;s existence as a going business, the
insolvency of Grantor, the appointment of a receiver for any part of Grantor&#146;s property, any
assignment for the benefit of creditors, any type of creditor workout, or the commencement of
any proceeding under any bankruptcy or insolvency laws by or against Grantor.
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%"><B>Creditor or Forfeiture Proceedings. </B>Commencement of foreclosure or forfeiture proceedings,
whether by judicial proceeding, self-help, repossession or any other method, by any creditor of
Grantor or by any governmental agency against any property securing the Indebtedness. This
includes a garnishment of any of Grantor&#146;s accounts, including deposit accounts, with Lender.
However, this Event of Default shall not apply if there is a good faith dispute by Grantor as
to the validity or reasonableness of the claim which is the basis of the creditor or forfeiture
proceeding and if Grantor gives Lender written notice of the creditor or forfeiture proceeding
and deposits with Lender monies or a surety bond for the creditor or forfeiture proceeding, in
an amount determined by Lender, in its sole discretion, as being an adequate reserve or bond
for the dispute.
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%"><B>Breach of Other Agreement. </B>Any breach by Grantor under the terms of any other agreement between
Grantor and Lender that is not remedied within any grace period provided therein, including
without limitation any agreement concerning any indebtedness or other obligation of Grantor to
Lender, whether existing now or later.
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%"><B>Events Affecting Guarantor. </B>Any of the preceding events occurs with respect to any guarantor,
endorser, surety, or accommodation party of any of the Indebtedness or any guarantor, endorser,
surety, or accommodation party dies or becomes incompetent, or revokes or disputes the validity
of, or liability under, any Guaranty of the Indebtedness.
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%"><B>Adverse Change. </B>A material adverse change occurs in Grantor&#146;s financial condition, or Lender
believes the prospect of payment or performance of the Indebtedness is impaired.
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%"><B>Insecurity. </B>Lender in good faith believes itself insecure.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt"><B>RIGHTS AND REMEDIES ON DEFAULT. </B>If an Event of Default occurs under this Deed of Trust, at any
time thereafter, Trustee or Lender may exercise any one or more of the following rights and
remedies:
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%"><B>Election of Remedies. </B>Election by Lender to pursue any remedy shall not exclude pursuit of any
other remedy, and an election to make expenditures or to take action to perform an obligation
of Grantor under this Deed of Trust, after Grantor&#146;s failure to perform, shall not affect
Lender&#146;s right to declare a default and exercise its remedies.
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%"><B>Accelerate Indebtedness. </B>Lender shall have the right at its option without notice to Grantor to
declare the entire Indebtedness immediately due and payable, including any prepayment penalty
which Grantor would be required to pay.
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%"><B>Foreclosure. </B>Lender shall have the right to cause all or any part of the Real Property, and
Personal Property, if Lender decides to proceed against it as if it were real property, to be
sold by the Trustee according to the laws of the State of Colorado as respects foreclosures
against real property. The Trustee shall give notice in accordance with the laws of Colorado.
The Trustee shall apply the proceeds of the sale in the following order: (a)&nbsp;to all costs and
expenses of the sale, including but not limited to Trustee&#146;s fees, attorneys&#146; fees, and the
cost of title evidence; (b)&nbsp;to all sums secured by this Deed of Trust; and (c)&nbsp;the excess, if
any, to the person or persons legally entitled to the excess.
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%"><B>UCC Remedies. </B>With respect to all or any part of the Personal Property, Lender shall have all
the rights and remedies of a secured party under the Uniform Commercial Code.
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%"><B>Collect Rents. </B>Lender shall have the right, without notice to Grantor to take possession of
and manage the Property and collect the Rents, including amounts past due and unpaid, and
apply the net proceeds, over and above Lender&#146;s costs, against the Indebtedness. In
furtherance of this right, Lender may require any tenant or other user of the Property to make
payments of rent or use fees directly to Lender. If the Rents are collected by Lender, then
Grantor irrevocably designates Lender as Grantor&#146;s attorney-in-fact to endorse instruments
received in payment thereof in the name of Grantor and to negotiate the same and collect the
proceeds. Payments by tenants or other users to Lender in response to Lender&#146;s demand shall
satisfy the obligations for which the payments are made, whether or not any proper grounds for
the demand existed. Lender may exercise its rights under this subparagraph either in person,
by agent, or through a receiver.
</DIV>
<P align="center" style="font-size: 10pt">&nbsp;

<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
</DIV>

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<DIV style="font-family: Helvetica,Arial,sans-serif; margin-left: .25in; width: 7.20in">
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head --><TR valign="bottom">
    <TD width="30%"></TD>
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    <TD width="30%"></TD>
</TR>

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<TR valign="bottom"><!-- Blank Space -->
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="left" valign="top">&nbsp;
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top"><B>DEED OF TRUST</B></TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="left" valign="top"><B>Loan No: 05500412-10</B>
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top"><B>(Continued)</B>
</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top"><B>Page 5</B></TD>
</TR>
<!-- End Table Body --></TABLE>
</DIV>



<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%"><B>Appoint Receiver. </B>Lender shall have the right to have a receiver appointed to take possession
of all or any part of the Property, with the power to protect and preserve the Property, to
operate the Property preceding foreclosure or sale, and to collect the Rents from the Property
and apply the proceeds, over and above the cost of the receivership, against the Indebtedness.
The receiver may serve without bond if permitted by law. Lender&#146;s right to the appointment of
a receiver shall exist whether or not the apparent value of the Property exceeds the
Indebtedness by a substantial amount. Employment by Lender shall not disqualify a person from
serving as a receiver. Receiver may be appointed by a court of competent jurisdiction upon ex
parte application and without notice, notice being expressly waived.
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%"><B>Tenancy at Sufferance. </B>If Grantor remains in possession of the Property after the Property is
sold as provided above or Lender otherwise becomes entitled to possession of the Property upon
default of Grantor, Grantor shall become a tenant at sufferance of Lender or the purchaser of
the Property and shall, at Lender&#146;s option, either (1)&nbsp;pay a reasonable rental for the use of
the Property, or (2)&nbsp;vacate the Property immediately upon the demand of Lender.
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%"><B>Other Remedies. </B>Trustee or Lender shall have any other right or remedy provided in this Deed
of Trust or the Note or available at law or in equity.
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%"><B>Sale of the Property. </B>In exercising its rights and remedies, Lender shall be free to designate
on or before it files a notice of election and demand with the Trustee, that the Trustee sell
all or any part of the Property together or separately, in one sale or by separate sales.
Lender shall be entitled to bid at any public sale on all or any portion of the Property. Upon
any sale of the Property, whether made under a power of sale granted in this Deed of Trust or
pursuant to judicial proceedings, if the holder of the Note is a purchaser at such sale, it
shall be entitled to use and apply all, or any portion of, the Indebtedness for or in
settlement or payment of all, or any portion of, the purchase price of the Property purchased,
and, in such case, this Deed of Trust, the Note, and any documents evidencing expenditures
secured by this Deed of Trust shall be presented to the person conducting the sale in order
that the amount of Indebtedness so used or applied may be credited thereon as having been
paid.
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%"><B>Attorneys&#146; Fees; Expenses. </B>If Lender forecloses or institutes any suit or action to enforce any
of the terms of this Deed of Trust, Lender shall be entitled to recover such sum as the court
may adjudge reasonable as attorneys&#146; fees at trial and upon any appeal. Whether or not any
court action is involved, and to the extent not prohibited by law, all reasonable expenses
Lender incurs that in Lender&#146;s opinion are necessary at any time for the protection of its
interest or the enforcement of its rights shall become a part of the Indebtedness payable on
demand and shall bear interest at the Note rate from the date of the expenditure until repaid.
Expenses covered by this paragraph include, without limitation, however subject to any limits
under applicable law, Lender&#146;s attorneys&#146; fees whether or not there is a lawsuit, including
attorneys&#146; fees and expenses for bankruptcy proceedings (including efforts to modify or vacate
any automatic stay or injunction), appeals, and any anticipated post-judgment collection
services, the cost of searching records, obtaining title reports (including foreclosure
reports), surveyors&#146; reports, and appraisal fees, title insurance, and fees for the Trustee, to
the extent permitted by applicable law. Grantor also will pay any court costs, in addition to
all other sums provided by law.
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%"><B>Rights of Trustee. </B>To the extent permitted by applicable law, Trustee shall have all of the
rights and duties of Lender as set forth in this section.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt"><B>NOTICES. </B>Any notice required to be given under this Deed of Trust, including without limitation
any notice of default and any notice of sale shall be given in writing, and shall be effective
when actually delivered, when actually received by telefacsimile (unless otherwise required by
law), when deposited with a nationally recognized overnight courier, or, if mailed, when deposited
in the United States mail, as first class, certified or registered mail postage prepaid, directed
to the addresses shown near the beginning of this Deed of Trust. All copies of notices of
foreclosure from the holder of any lien which has priority over this Deed of Trust shall be sent
to Lender&#146;s address, as shown near the beginning of this Deed of Trust. Any party may change its
address for notices under this Deed of Trust by giving formal written notice to the other parties,
specifying that the purpose of the notice is to change the party&#146;s address. For notice purposes,
Grantor agrees to keep Lender informed at all times of Grantor&#146;s current address. Unless otherwise
provided or required by law, if there is more than one Grantor, any notice given by Lender to any
Grantor is deemed to be notice given to all Grantors.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt"><B>SUBSEQUENT TRANSACTIONS INVOLVING REAL ESTATE. </B>Grantor shall not allow or permit the real property
described in this document to become encumbered by any lien, security interest, or charge, other
than the encumbrance created by this Deed of Trust, without the prior written consent of the
lender. This includes any and all security interests, even if junior in right to the security
interests granted under this Deed of Trust.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt"><B>MISCELLANEOUS PROVISIONS. </B>The following miscellaneous provisions are a part of this Deed of Trust:
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%"><B>Amendments. </B>This Deed of Trust, together with any Related Documents, constitutes the entire
understanding and agreement of the parties as to the matters set forth in this Deed of Trust. No alteration of or amendment
to this Deed of Trust shall be effective unless given in writing and signed by the party or
parties sought to be charged or bound by the alteration or amendment.
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%"><B>Annual Reports. </B>If the Property is used for purposes other than Grantor&#146;s residence, Grantor
shall furnish to Lender, upon request, a certified statement of net operating income received
from the Property during Grantor&#146;s previous fiscal year in such form and detail as Lender shall
require. &#147;Net operating income&#148; shall mean all cash receipts from the Property less all cash
expenditures made in connection with the operation of the Property.
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%"><B>Caption Headings. </B>Caption headings in this Deed of Trust are for convenience purposes only
and are not to be used to interpret or define the provisions of this Deed of Trust.
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%"><B>Merger. </B>There shall be no merger of the interest or estate created by this Deed of Trust with
any other interest or estate in the Property at any time held by or for the benefit of Lender
in any capacity, without the written consent of Lender.
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%"><B>Governing Law. This Deed of Trust will be governed by federal law applicable to Lender and,
to the extent not preempted by federal law, the laws of the State of Colorado without regard to
its conflicts of law provisions. This Deed of Trust has been accepted by Lender in the State
of Colorado.</B>
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%"><B>Choice of Venue. </B>If there is a lawsuit, Grantor agrees upon Lender&#146;s request to submit to
the jurisdiction of the courts of BOULDER County, State of Colorado.
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%"><B>No Waiver by Lender. </B>Lender shall not be deemed to have waived any rights under this Deed of
Trust unless such waiver is given in writing and signed by Lender. No delay or omission on
the part of Lender in exercising any right shall operate as a waiver of such right or any other
right. A waiver by Lender of a provision of this Deed of Trust shall not prejudice or
constitute a waiver of Lender&#146;s right otherwise to demand strict compliance with that provision
or any other provision of this Deed of Trust. No prior waiver by Lender, nor any course of
dealing between Lender and Grantor, shall constitute a waiver of any of Lender&#146;s rights or of
any of Grantor&#146;s obligations as to any future transactions. Whenever the consent of Lender is
required under this Deed of Trust, the granting of such consent by Lender in any instance shall
not constitute continuing consent to subsequent instances where such consent is required and in
all cases such consent may be granted or withheld in the sole discretion of Lender.
</DIV>




<P align="center" style="font-size: 10pt">&nbsp;

<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
</DIV>




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<DIV style="font-family: Helvetica,Arial,sans-serif; margin-left: .25in; width: 7.20in">
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
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    <TD width="30%"></TD>
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</TR>

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    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="left" valign="top">&nbsp;
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top"><B>DEED OF TRUST</B></TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="left" valign="top"><B>Loan No: 05500412-10</B>
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top"><B>(Continued)</B>
</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top"><B>Page 6</B></TD>
</TR>
<!-- End Table Body --></TABLE>
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%"><B>Severability. </B>If a court of competent jurisdiction finds any provision of this Deed of Trust
to be illegal, invalid, or unenforceable as to any circumstance, that
finding shall not make the offending provision illegal, invalid, or
unenforceable as to any other circumstance. If feasible, the offending provision shall be
considered modified so that it becomes legal, valid and enforceable. If the offending provision
cannot be so modified, it shall be considered deleted from this Deed of Trust. Unless otherwise
required by law, the illegality, invalidity, or unenforceability of any provision of this Deed
of Trust shall not affect the legality, validity or enforceability of any other provision of
this Deed of Trust.
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%"><B>Successors and Assigns. </B>Subject to any limitations stated in this Deed of Trust on transfer of
Grantor&#146;s interest, this Deed of Trust shall be binding upon and inure to the benefit of the
parties, their successors and assigns. If ownership of the Property becomes vested in a person
other than Grantor, Lender, without notice to Grantor, may deal with Grantor&#146;s successors with
reference to this Deed of Trust and the Indebtedness by way of forbearance or extension without
releasing Grantor from the obligations of this Deed of Trust or liability under the
Indebtedness.
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%"><B>Time is of the Essence. </B>Time is of the essence in the performance of this Deed of Trust.
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%"><B>Waiver of Homestead Exemption. </B>Grantor hereby releases and waives all rights and benefits of
the homestead exemption laws of the State of Colorado as to all Indebtedness secured by this
Deed of Trust.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt"><B>DEFINITIONS. </B>The following capitalized words and terms shall have the following meanings when used
in this Deed of Trust. Unless specifically stated to the contrary, all references to dollar
amounts shall mean amounts in lawful money of the United States of America. Words and terms used
in the singular shall include the plural, and the plural shall include the singular, as the
context may require. Words and terms not otherwise defined in this Deed of Trust shall have the
meanings attributed to such terms in the Uniform Commercial Code:
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%"><B>Beneficiary. </B>The word &#147;Beneficiary&#148; means MILE HIGH BANKS, and its successors and assigns.
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%"><B>Borrower. </B>The word &#147;Borrower&#148; means NETREIT, A CALIFORNIA CORPORATION and includes all
co-signers and co-makers signing the Note and all their successors and assigns.
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%"><B>Deed
of Trust. </B>The words &#147;Deed of Trust&#148; mean this Deed of Trust among Grantor, Lender, and
Trustee, and includes without limitation all assignment and security interest provisions
relating to the Personal Property and Rents.
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%"><B>Default. </B>The word &#147;Default&#148; means the Default set forth in this Deed of Trust in the section
titled &#147;Default&#148;.
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%"><B>Environmental Laws. </B>The words &#147;Environmental Laws&#148; mean any and all state, federal and local
statutes, regulations and ordinances relating to the protection of human health or the
environment, including without limitation the Comprehensive Environmental Response,
Compensation, and Liability Act of 1980, as amended, 42 U.S.C. Section&nbsp;9601, et seq.
(&#147;CERCLA&#148;), the Superfund Amendments and Reauthorization
Act of 1986, Pub. L. No.&nbsp;99-499
(&#147;SARA&#148;), the Hazardous Materials Transportation Act, 49 U.S.C. Section&nbsp;1801, et seq., the
Resource Conservation and Recovery Act, 42 U.S.C. Section&nbsp;6901, et seq., or other applicable
state or federal laws, rules, or regulations adopted pursuant thereto.
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%"><B>Event of Default. </B>The words &#147;Event of Default&#148; mean any of the events of default set forth in
this Deed of Trust in the events of default section of this Deed of Trust.
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%"><B>Grantor. </B>The word &#147;Grantor&#148; means NETREIT, A CALIFORNIA CORPORATION.
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%"><B>Guaranty. </B>The word &#147;Guaranty&#148; means the guaranty from guarantor, endorser, surety, or
accommodation party to Lender, including without limitation a guaranty of all or part of the
Note.
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%"><B>Hazardous Substances. </B>The words &#147;Hazardous Substances&#148; mean materials that, because of their
quantity, concentration or physical, chemical or infectious characteristics, may cause or pose
a present or potential hazard to human health or the environment when improperly used, treated,
stored, disposed of, generated, manufactured, transported or otherwise handled. The words
&#147;Hazardous Substances&#148; are used in their very broadest sense and include without limitation any
and all hazardous or toxic substances, materials or waste as defined by or listed under the
Environmental Laws. The term &#147;Hazardous Substances&#148; also includes, without limitation,
petroleum and petroleum by-products or any fraction thereof and asbestos.
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%"><B>Improvements. </B>The word &#147;Improvements&#148; means all existing and future improvements, buildings,
structures, mobile homes affixed on the Real Property, facilities, additions, replacements and
other construction on the Real Property.
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%"><B>Indebtedness. </B>The word &#147;Indebtedness&#148; means all principal, interest, and other amounts, costs
and expenses payable under the Note or Related Documents, together with all renewals of,
extensions of, modifications of, consolidations of and substitutions for the Note or Related
Documents and any amounts expended or advanced by Lender to discharge Grantor&#146;s obligations or
expenses incurred by Trustee or Lender to enforce Grantor&#146;s obligations under this Deed of
Trust, together with interest on such amounts as provided in this
Deed of Trust. Specifically,
without limitation, Indebtedness includes all amounts that may be indirectly secured by the
Cross-Collateralization provision of this Deed of Trust.
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%"><B>Lender. </B>The word &#147;Lender&#148; means MILE HIGH BANKS, its successors and assigns.
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%"><B>Note. </B>The word &#147;Note&#148; means the promissory note dated July&nbsp;9, 2008, <B>in the original
principal amount of $6,597,500.00 </B>from Grantor to Lender, together with all renewals of,
extensions of, modifications of, refinancings of, consolidations of, and substitutions for the
promissory note or agreement. The maturity date of the Note is July&nbsp;9, 2011.
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%"><B>Personal Property. </B>The words &#147;Personal Property&#148; mean all equipment, fixtures, and other
articles of personal property now or hereafter owned by Grantor, and now or hereafter attached
or affixed to the Real Property; together with all accessions, parts, and additions to, all
replacements of, and all substitutions for, any of such property; and together with all
proceeds (including without limitation all insurance proceeds and refunds of premiums) from any
sale or other disposition of the Property.
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%"><B>Property. </B>The word &#147;Property&#148; means collectively the Real Property and the Personal Property.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%"><B>Real Property. </B>The words &#147;Real Property&#148; mean the real property, interests and rights, as
further described in this Deed of Trust.
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%"><B>Related Documents. </B>The words &#147;Related Documents&#148; mean all promissory notes, credit agreements,
loan agreements, environmental agreements, guaranties, security agreements, mortgages, deeds of
trust, security deeds, collateral mortgages, and all other instruments, agreements and
documents, whether now or hereafter existing, executed in connection with the Indebtedness.
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%"><B>Rents. </B>The word &#147;Rents&#148; means all present and future rents, revenues, income, issues,
royalties, profits, and other benefits derived from the Property.
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%"><B>Trustee. </B>The word &#147;Trustee&#148; means the Public Trustee of DENVER COUNTY County, Colorado.
</DIV>


<P align="center" style="font-size: 10pt">&nbsp;

<P align="center" style="font-size: 10pt"><!-- Folio --><!-- /Folio -->
</DIV>




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<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>
<DIV style="font-family: Helvetica,Arial,sans-serif; margin-left: .25in; width: 7.20in">
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head --><TR valign="bottom">
    <TD width="30%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="30%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="30%">&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD align="center" valign="top">&nbsp;
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top"><B>DEED OF TRUST</B></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="left" valign="top"><B>Loan No: 05500412-10</B>
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top"><B>(Continued)</B>
</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top"><B>Page 7</B></TD>
</TR>
<!-- End Table Body --></TABLE>
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt"><B>GRANTOR ACKNOWLEDGES HAVING READ ALL THE PROVISIONS OF THIS DEED OF TRUST, AND GRANTOR AGREES TO
ITS TERMS.</B>
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt"><B>GRANTOR:</B>
</DIV>


<TABLE width="100%" border="0" cellspacing="0" cellpadding="0" style="font-size: 10pt">
<TR>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="35%">&nbsp;</TD>
    <TD width="63%">&nbsp;</TD>
</TR>
<TR>
    <TD colspan="4" align="left"><B>NETREIT, A CALIFORNIA CORPORATION</B><BR>
&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD valign="top" COLSPAN="2">By:&nbsp;&nbsp;</TD>

<TD colspan="2" style="border-bottom: 1px solid #000000" align="left">/s/
Kenneth W. Elsberry
&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" NOWRAP>KENNETH   W.   ELSBERRY,
Secretary &#038;  CFO   of</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left"> NETREIT, A   CALIFORNIA CORPORATION&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
</TABLE>

<DIV align="center" style="font-size: 10pt; margin-top: 10pt"><B>CORPORATE ACKNOWLEDGMENT</B>
</DIV>

<DIV align="center">
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    <TD width="5%">&nbsp;</TD>
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    <TD width="25%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
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    <TD width="2%">&nbsp;</TD>
    <TD width="0%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
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    <TD width="2%">&nbsp;</TD>
    <TD width="30%">&nbsp;</TD>
</TR>

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<!-- Begin Table Body -->
<TR valign="bottom">
    <TD valign="top" nowrap><DIV style="margin-left:0px; text-indent:-0px"><B>STATE OF Colorado</B>
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><B>&nbsp;</B>
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top"><B>)</B></TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top" style="border-top: 0px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top"><B>)</B></TD>
    <TD align="left" valign="top" colspan="3">&nbsp;<B>SS</B></TD>
</TR>
<TR valign="bottom" style="padding-top: 1px">
    <TD valign="top" nowrap><DIV style="margin-left:0px; text-indent:-0px"><B>COUNTY OF El Paso</B>
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><B>&nbsp;</B>
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top"><B>)</B></TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top" style="border-top: 0px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
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</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt">On this 9th day of July, 2008, before me, the undersigned Notary Public, personally appeared
<B>KENNETH W. ELSBERRY, Secretary &#038; CFO of NETREIT, A CALIFORNIA CORPORATION, </B>and known to me to be an
authorized agent of the corporation that executed the Deed of Trust and acknowledged the Deed of
Trust to be the free and voluntary act and deed of the corporation, by authority of its Bylaws or
by resolution of its board of directors, for the uses and purposes therein mentioned, and on oath
stated that he or she is authorized to execute this Deed of Trust and in fact executed the Deed of
Trust on behalf of the corporation.
</DIV>
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
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    <TD width="1%">&nbsp;</TD>
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    <TD width="14%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="16%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="13%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="10%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="8%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="20%">&nbsp;</TD>
</TR>

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<!-- Begin Table Body -->
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">(STAMP)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom" style="padding-top: 1px"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom" style="padding-top: 1px">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">By
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">/s/ &#091;ILLEGIBLE&#093;
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><B>Residing at</B></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" valign="top" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" valign="top" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom" style="padding-top: 1px">
    <TD colspan="3" valign="top" align="left" nowrap><B>Notary Public in and for the State of</B></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" valign="top" align="left" nowrap><B>My commission expires</B></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top" style="border-top: 1px solid #000000">&nbsp;
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<!-- End Table Body --></TABLE>
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 10pt">LASER
PRO Lending, Ver. 5.40.00.003 Copr. Harland Financial Solutions, Inc.
1997, 2008.<BR>
 All Rights Reserved. &#151; CO
I:\CFI\LPL\G01.FC TR-1533 PR-8
</DIV>



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<P align="center" style="font-size: 10pt"><!-- Folio --><!-- /Folio -->
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