Document:

lfr_Ex10_8

		
			Exhibit 10.8
		

		
			 
		

		
			PROMISSORY NOTE
		

		
			 
		

			
					
						Principal

					
					
						Loan Date

					
					
						Maturity

					
					
						Loan No

					
					
						Call / Coll

					
					
						Account

					
					
						Officer

					
					
						Initials

				
	
					
						$183,700.00

					
					
						04-10-2020

					
					
						04-10-2022

					
					
						 

					
					
						 

					
					
						 

					
					
						403

					
					
						 

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

				

		
			 
		

			
					
						Borrower:

					
					
						LF3 Lubbock Casa TRS, LLC

					
					
						Lender:

					
					
						Western State Bank

				
	
					
						 

					
					
						6004 Marsha Sharp Fwy 

					
					
						 

					
					
						West Fargo

				
	
					
						 

					
					
						Lubbock, TX 79407

					
					
						 

					
					
						P.O. Box 617

				
	
					
						 

					
					
						 

					
					
						 

					
					
						755 13th Ave E

				
	
					
						 

					
					
						 

					
					
						 

					
					
						West Fargo, ND 58078

				
	
					
						 

					
					
						 

					
					
						 

					
					
						 

				

		
			 
		

			
					
						Principal Amount:  $183,700.00

					
					
						Date of Note:  April 10, 2020

				

		
			 
		

		
			PROMISE TO PAY. LF3 Lubbock Casa TRS, LLC ("Borrower") promises to pay to Western State  Bank ("Lender"),  or order, In lawful money of the United States of America, the principal amount of One Hundred Eighty three Thousand Seven Hundred & 00/100 Dollars ($183,700.00), together with Interest on the unpaid principal balance from April 10, 2020, calculated as described In the "INTEREST CALCULATION METHOD" paragraph using an interest rate of 1.000% per annum based on a year of 360 days, until paid In full. The interest rate may change under the terms and conditions of the "INTEREST AFTER DEFAULT" section.
		

		
			PAYMENT.  Borrower will pay this loan  in 18 payments of $10,339.93 each payment. Borrower's first payment Is due November 10, 2020, and all subsequent payments are due on the same day of each month after that. Borrower's final payment will be due on April 10, 2022, and will be for all principal and all accrued Interest not yet paid. Payments Include principal and Interest. Unless otherwise agreed or required by applicable law, payments will be applied first to any accrued unpaid interest; then to principal; then to any late  charges; then to any escrow or reserve account payments as required under any mortgage, deed of trust, or other security instrument  or security agreement securing this Note; and then to any unpaid collection costs. Borrower will pay Lender at Lender's address shown above or at such other place as Lender may designate In writing. All payments must be made In U.S. dollars and must be received by Lender consistent with any written payment Instructions provided by Lender. If a payment Is made consistent with Lender's payment Instructions but received after West Fargo/Fargo: 7:00 PM Central Standard Time; Devils Lake: 6:00 PM Central Standard Time, Lender will credit Borrower's payment on the next business day.
		

		
			INTEREST CALCULATION METHOD. Interest on this Note Is computed on a 365/360 basis; that Is, by applying the ratio of the Interest rate over a year of 360 days, multiplied by the outstanding principal balance,  multiplied by the actual number  of days the principal balance is outstanding. All Interest payable under this Note  Is computed using this method.
		

		
			PREPAYMENT. Borrower may pay without penalty all or a portion of the amount owed earlier  than  it is  due. Early payments will not, unless agreed to by Lender In writing, relieve Borrower of Borrower's obligation to continue to make  payments under  the payment schedule. Rather,  early payments will reduce the principal balance due and may result In Borrower's making fewer payments. Borrower agrees not to send ender payments marked "paid in full", "without recourse", or similar language.  If Borrower sends such a payment, Lender may accept  it without losing any of Lender's rights  under this Note, and Borrower will remain obligated to pay any further amount owed to Lender. All written communications concerning disputed amounts, Including any check or other payment Instrument that indicates that the  payment constitutes "payment In full" of the amount owed or that Is tendered with other conditions or limitations or as full satisfaction of a disputed amount must be malled or delivered to: Western State Bank, West Fargo, P.O.Box 617 West Fargo, ND 58078.
		

		
			LATE CHARGE. If a  payment ls 10 days or  more  late, Borrower will be charged 5.000%  of the  unpaid portion of the regularly scheduled payment or $25.00, whichever Is greater.
		

		
			INTEREST AFTER DEFAULT.  Upon default, including  failure to pay upon final maturity, the interest  rate  on  this Note  shall be increased by 3.000 percentage points. However, In no event will the Interest rate exceed the maximum interest rate  limitations under applicable  law.
		

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

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

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

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

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

		
			Death or Insolvency.  The dissolution of Borrower (regardless of whether  election to continue is made), any member withdraws from Borrower, or any other termination of Borrower's existence as a going business or the death of any member,  the  Insolvency of Borrower, the appointment of a  receiver for any part of Borrower's property, any assignment for the  benefit of creditors,  any type of creditor workout,  or the commencement of any proceeding under any bankruptcy or insolvency laws by or against Borrower.
		

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

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

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

		
			Insecurity. Lender in good faith believes itself  insecure.
		

		
			 
		

		
			

		 

			

					

						 

					

					

						PROMISSORY NOTE
(Continued)

					

					

						Page 2

				

		

			 

		

		

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

		
			EXPENSES. If Lender Institutes any suit or action to enforce any of the terms of this Note, Lender shall be entitled to recover such sum as the court may adjudge reasonable. Whether or not any court action Is Involved, and to the extent not prohibited by law, all reasonable expenses Lender incurs that in Lender's opinion are necessary at any time for the protection of its interest or the enforcement of its rights shall become a part of the loan payable on demand and shall bear interest at the Note rate from the date of the expenditure until repaid. Expenses covered by this paragraph include, without limitation, however subject to any limits under applicable law, Lender's expenses for bankruptcy proceedings (including efforts to modify or vacate any automatic stay or injunction), and appeals, to the extent permitted by applicable law. Borrower also will pay any court costs, In addition to all other sums provided by law.
		

		
			JURY WAIVER. Lender and Borrower hereby waive the right to any jury trial in any action, proceeding, or counterclaim brought by either Lender or Borrower against the other.
		

		
			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 North Dakota without regard to Its conflicts of law provisions. This Note has been accepted by Lender In the State of North Dakota.
		

		
			CHOICE OF VENUE. If there is a lawsuit, Borrower agrees upon Lender's request to submit to the jurisdiction of the courts of the State of Texas, in the county In which Borrower's following address is located: 6004 Marsha Sharp Fwy, Lubbock, TX 79407.
		

		
			RIGHT OF SETOFF. To the extent permitted by applicable law, Lender reserves a right of setoff in all Borrower's accounts with Lender (whether checking, savings, or some other account). This Includes all accounts Borrower holds jointly with someone else and all accounts Borrower may open in the future. However, this does not Include any IRA or Keogh accounts, or any trust accounts for which setoff would be prohibited by law. Borrower authorizes ender, to the extent permitted by applicable law, to charge or setoff all sums owing on the debt against any and all such accounts, and, at Lender's option, to administratively freeze all such accounts to allow Lender to protect Lender's charge and setoff rights provided in this paragraph.
		

		
			COLLATERAL. This loan Is unsecured.
		

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

		
			NOTIFY US OF INACCURATE INFORMATION WE REPORT TO CONSUMER REPORTING AGENCIES. Borrower may notify Lender If Lender reports any Inaccurate Information about Borrower's account(s) to a consumer reporting agency. Borrower's written notice describing the specific inaccuracy(ies) should be sent to Lender at the following address: Western State Bank 110 4th St SE Devils Lake, ND 58301.
		

		
			SBA PAYCHECK PROTECTION PROGRAM:. SBA PAYCHECK PROTECTION PROGRAM. ender is making this loan pursuant to the Paycheck Protection Program (the "PPP") created by the Section 1102 of the Coronavirus Aid, Relief and Economic Security Act (the "CARES Act"), which loan Is governed by the following (collectively, the "Governing Rules"): (i) the CARES Act, (ii) section 7(a)(36) of the Small Business Act, (iii) any rules or guidance that has been issued by the Small Business Administration Implementing the PPP, and/or (iv) any other applicable loan or related document. In addition to the Governing Rules, this loan Is subject to the Program Requirements, as defined in 13 CFR § 120.10, as amended from time to time (collectively "PPP Loan Program Requirements"). Notwithstanding anything to the contrary herein, the Borrower (a) agrees that the Note shall be interpreted and construed to be consistent with the Governing Rules and the PPP Loan Program Requirements and (b) authorizes the Lender to unilaterally amend any provision of the Note or any other document related to or arising from this loan, to the extent required to comply with the Governing Rules or the PPP Loan Program Requirements.
		

		
			When SBA Is the holder, this Note and loan will be Interpreted and enforced under Federal law, including, without limitation, the Governing Rules, PPP Loan Program Requirements, and all applicable SBA regulations. ender or SBA may use state or local procedures for filing papers and instruments, recording documents, giving notice, foreclosing liens, and other purposes. By using such procedures, SBA does not waive any Federal Immunity from state or local control, penalty, tax, or liability. As to this Note, Borrower may not claim or assert against SBA any local or state law to deny any obligation, defeat any claim of SBA, or preempt Federal law.
		

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

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

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

		
			 
		

			
					
						LF3 LUBBOCK CASA TRS, LLC

					
					
						 

				
	
					
						 

					
					
						 

				
	
					
						LODGING FUND REIT Ill TRS, INC., Member of LF3 Lubbock Casa TRS, LLC

					
					
						 

				
	
					
						 

					
					
						 

				
	
					
						By:

					
					
						/s/ Katie Cox

					
					
						 

				
	
					
						 

					
					
						Katie Cox, Chief Financial Officer of Lodging Fund

					
					
						 

				
	
					
						 

					
					
						REIT Ill TRS, Inc.

					
					
						 

				

		
			 
		

		
			
		

		
			

		 

		

			 

		

			

					

						 

					

					

						PROMISSORY NOTE
(Continued)

					

					

						Page 3

				

		

			 

		

		

		
			 
		

		
			 
		

		
			LENDER:
		

		
			 
		

		
			 
		

			
					
						WESTERN STATE BANK

					
					
						 

				
	
					
						 

					
					
						 

				
	
					
						 

					
					
						/s/ Ryan Rued

					
					
						 

				
	
					
						 

					
					
						Ryan Rued, VP/Business Banking Officerlfr_Ex10_9

		
			Exhibit 10.9
		

		
			 
		

		
			PROMISSORY NOTE
		

		
			 
		

			
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

				
	
					
						Principal

					
					
						Loan Date

					
					
						Maturity

					
					
						Loan No

					
					
						Call / Coll

					
					
						Account

					
					
						Officer

					
					
						Initials

				
	
					
						$75,600.00

					
					
						04-17-2020

					
					
						04-17-2022

					
					
						 

					
					
						 

					
					
						 

					
					
						403

					
					
						 

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

				

		
			 
		

		
			 
		

			
					
						Borrower:

					
					
						LF3 Cedar Rapids TRS LLC

					
					
						Lender:

					
					
						Western State Bank

				
	
					
						 

					
					
						1635 43rd St S Ste 305

					
					
						 

					
					
						West Fargo

				
	
					
						 

					
					
						Fargo, ND 58103

					
					
						 

					
					
						P.O. Box 617

				
	
					
						 

					
					
						 

					
					
						 

					
					
						755 13th Avenue

				
	
					
						 

					
					
						 

					
					
						 

					
					
						West Fargo, ND 58078

				
	
					
						 

					
					
						 

					
					
						 

					
					
						 

				

		
			 
		

			
					
						Principal Amount:  $75,600.00

					
					
						Date of Note:  April 17, 2020

				

		
			 
		

		
			PROMISE TO PAY. LF3 Cedar Rapids TRS LLC ("Borrower") promises to pay to lf\/estern State Bank ("Lender"), or order, in lawful money of the United States of America, the principal amount of Seventy-five Thousand Six Hundred & 00/100 Dollars ($75,600.00), together with interest on the unpaid principal balance from April 17, 2020, calculated as described in the "INTEREST CALCULATION METHOD" paragraph using an interest rate of 1.000% per annum based on a year of 360 days, until paid in full. The interest rate may change under the terms and conditions of the "INTEREST AFTER DEFAULT" section.
		

		
			PAYMENT. Borrower will pay this loan in 18 payments of $4,255.30 each payment. Borrower's first payment is due November 17, 2020, and all subsequent payments are due on the same day of each month after that. Borrower’s final payment will be due on April 17, 2022, and will be for all principal and all accrued interest not yet paid. Payments Include principal and interest. Unless otherwise agreed or required by applicable law, payments will be applied first to any accrued unpaid interest; then to principal; then to any late charges; then to any escrow or reserve account payments as required under any mortgage, deed of trust, or other security instrument or security agreement securing this Note; and then to any unpaid collection costs. Borrower will pay Lender at Lender's address shown above or at such other place as Lender may designate in writing. All payments must be made in U.S. dollars and must be received by Lender consistent with any written payment instructions provided by Lender. If a payment is made consistent with Lender's payment instructions but received after \Nest Fargo/Fargo: 7:00 PM Central Standard Time; Devils Lake: 6:00 PM Central Standard Time, Lender will credit Borrower's payment on the next business day.
		

		
			INTEREST CALCULATION METHOD. Interest on this Note is computed on a 365/360 basis; that is, by applying the ratio of the interest rate over a year of 360 days, multiplied by the outstanding principal balance, multiplied by the actual number of days the principal balance Is outstanding. All interest payable under this Note is computed using this method.
		

		
			PREPAYMENT. Borrower may pay without penalty all or a portion of the amount owed earlier than it is due. Early payments will not, unless agreed to by Lender in writing, relieve Borrower of Borrower's obligation to continue to make payments under the payment schedule. Rather, early payments will reduce the principal balance due and may result in Borrower's making fewer payments. Borrower agrees not to send Lender payments marked "paid in full", "without recourse", or similar language. If Borrower sends such a payment, Lender may accept it without losing any of Lender's rights under this Note, and Borrower will remain obligated to pay any further amount owed to Lender. All written communications concerning disputed amounts, including any check or other payment instrument that indicates that the payment constitutes "payment in full" of the amount owed or that is tendered with other conditions or limitations or as full satisfaction of a disputed amount must be mailed or delivered to: Western State Bank, West Fargo, P.O. Box 617, 755 13th Avenue,  West Fargo, ND 58078.
		

		
			LATE CHARGE. If a payment is 10 days or more late, Borrower will be charged 5.000% of the unpaid portion of the regularly scheduled payment or $25.00, whichever is greater.
		

		
			INTEREST AFTER DEFAULT. Upon default, including failure to pay upon final maturity, the interest rate on this Note shall be increased by 3.000 percentage points. However, in no event will the interest rate exceed the maximum interest rate limitations under applicable law.
		

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

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

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

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

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

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

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

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

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

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

		
			

		 

		

		
			Insecurity. Lender in good faith believes itself insecure.
		

		
			 
		

		
			

		 

			

					

						 

					

					

						 

					

					

						 

				
	

					

						 

					

					

						PROMISSORY NOTE
(Continued)

					

					

						Page 3

				
	

					

						 

					

					

						 

					

					

						 

				

		

			 

		

		

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

		
			EXPENSES. If Lender institutes any suit or action to enforce any of the terms of this Note, Lender shall be entitled to recover such sum as the court may adjudge reasonable. Whether or not any court action is involved, and to the extent not prohibited by law, all reasonable expenses Lender incurs that in Lender's opinion are necessary at any time for the protection of its interest or the enforcement of its rights shall become a part of the loan payable on demand and shall bear interest at the Note rate from the date of the expenditure until repaid. Expenses covered by this paragraph include, without limitation, however subject to any limits under applicable law, Lender's expenses for bankruptcy proceedings (including efforts to modify or vacate any automatic stay or injunction), and appeals, to the extent permitted by applicable law. Borrower also will pay any court costs, in addition to all other sums provided by law.
		

		
			JURY WAIVER. Lender and Borrower hereby waive the right to any jury trial in any action, proceeding, or counterclaim brought by either Lender or Borrower against the other.
		

		
			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 North Dakota without regard to its conflicts of law provisions. This Note has been accepted by Lender in the State of North Dakota.
		

		
			CHOICE OF VENUE. If there is a lawsuit, Borrower agrees upon Lender's request to submit to the jurisdiction of the courts of the State of North Dakota, in the county in which Borrower's following address is located: 1635 43rd St S Ste 305, Fargo, ND 58103.
		

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

		
			COLLATERAL. This loan is unsecured.
		

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

		
			NOTIFY US OF INACCURATE INFORMATION WE REPORT TO CONSUMER REPORTING AGENCIES. Borrower may notify Lender if Lender reports any inaccurate information about Borrower's account(s) to a consumer reporting agency. Borrower's written notice describing the specific inaccuracy(ies) should be sent to Lender at the following address: Western State Bank 110 4th St SE Devils Lake, ND 58301.
		

		
			SBA PAYCHECK PROTECTION PROGRAM. SBA PAYCHECK PROTECTION PROGRAM. Lender is making this loan pursuant to the Paycheck Protection Program (the "PPP") created by the Section 1102 of the Coronavirus Aid, Relief and Economic Security Act (the "CARES Act"), which loan is governed by the following (collectively, the "Governing Rules"): (i) the CARES Act, (ii) section 7(a)(36) of the Small Business Act, (iii) any rules or guidance that has been issued by the Small Business Administration implementing the PPP, and/or (iv) any other applicable loan or related document. In addition to the Governing Rules, this loan is subject to the Program Requirements, as defined in 13 CFR § 120.10, as amended from time to time (collectively “PPP Loan Program Requirements"). Notwithstanding anything to the contrary herein, the Borrower (a) agrees that the Note shall be interpreted and construed to be consistent with the Governing Rules and the PPP Loan Program Requirements and (b) authorizes the Lender to unilaterally amend any provision of the Note or any other document related to or arising from this loan, to the extent required to comply with the Governing Rules or the PPP Loan Program Requirements.
		

		
			When SBA is the holder, this Note and loan will be interpreted and enforced under Federal law, including, without limitation, the Governing Rules, PPP Loan Program Requirements, and all applicable SBA regulations. Lender or SBA may use state or local procedures for filing papers and instruments, recording documents, giving notice, foreclosing liens, and other purposes. By using such procedures, SBA does not waive any Federal immunity from state or local control, penalty, tax, or liability. As to this Note, Borrower may not claim or assert against SBA any local or state law to deny any obligation, defeat any claim of SBA, or preempt Federal law.
		

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

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

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

		
			 
		

		
			BORROWER:
		

		
			 
		

		
			 
		

			
					
						LF3 CEDAR RAPIDS TRS LLC

					
					
						 

				
	
					
						 

					
					
						 

				
	
					
						By: 

					
					
						/s/ Katle Cox

					
					
						 

				
	
					
						 

					
					
						Katie Cox, Chief  Financial Officer of Lodging Fund 

					
					
						 

				
	
					
						 

					
					
						REIT Ill, Inc. of LF3 Cedar Rapids TRS LLC

					
					
						 

				

		
			 
		

		
			
		

		
			

		 

			

					

						 

					

					

						 

					

					

						 

				
	

					

						 

					

					

						PROMISSORY NOTE
(Continued)

					

					

						Page 4

				
	

					

						 

					

					

						 

					

					

						 

				

		

			 

		

		

		
			 
		

		
			LENDER:
		

		
			 
		

		
			 
		

			
					
						WESTERN STATE BANK

					
					
						 

				
	
					
						 

					
					
						 

				
	
					
						 

					
					
						/s/ Ryan Rued

					
					
						 

				
	
					
						 

					
					
						Ryan Rued, VP/Business Banking Officer

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