Document:

EXHIBIT 10.35

 

LEASE OF COMMERCIAL BUILDING (TRIPLE NET)

 

	Effective Date: January 1, 2013	County & State
        where property is located:
	 	Warren County, Kentucky
	 	 
	LESSOR	LESSEE
	GC Royalty & Investment, LP (26-2157904)	Bayou City Exploration, Inc. (61-1306702)
	632 Adams Street	632 Adams Street
	Bowling Green, KY 42101	Bowling Green, KY 42101
	 	 
	Leased Premises address or location:	 
	632 Adams Street, Bowling Green, KY 42101	 
	 	 
	Leased Premises legal description: See Attached.	 
	 	 
	 	 
	Alterations to be made by Lessor: NONE	 
	 	 
	 	 

SECTION I

SPECIFIC PROVISIONS

 

1. Consideration,.

For valuable consideration Lessor leases to
Lessee the leased premises, with improvements and personal property described above according to the terms herein set forth, a
copy of which the Lessee acknowledged receipt,

2. Term
of Lease.

This lease shall be effective for the term
of three years. Beginning on January 1, 2013 and ending on December 31, 2015.

3.  
Rent for Standard Lease.

Rent shall be
due on the 5th day of each month. Beginning with the month of February, 2013. Lessee shall prepay the first and last months rent
in advance. The total monthly amount for rent is calculated as follows:

Base monthly rent $15,000.00; Plus

Increase in real estate taxes or other taxes
charged by the Lessor as a result of the ownership of the building; Plus

Sales or Transaction
tax charged by any governmental entity on the rental transaction; Plus

Late payment penalty of 5% of each rent payment
when the payment is made more than 10 days after it is due.

4.    
Base Rent.

The Base Rent, as prescribed in paragraph
three may be increased by percentage rent, cost of living increases, increase in the cost of fire insurance paid by Lessor, increases
in taxes paid by Lessor, taxes on the transaction of the rental, and common area maintenance charges, if any, The base rent for
the term shall be the monthly base rent multiplied by the number of months in the term of this lease.

5. Percentage of Rent: N/A

6. Cost of Living Escalation.

If paragraph three provides for
increases in base rent because of cost of living increases, then this paragraph shall be applicable, Since the base rent is predicated
upon the retail cost of living index remaining constant, then, should this lease be for more than one year, and should the Statistical
Abstract of the United States, as published by the United States Government, evidence that on the January next following the first
year of this lease the retail cost of living index has increased, then the amount of each rent payment shall be increased in that
same percentage, beginning with the first payment due following the date that Lessor serves written notice to Lessee of this increase,
with a copy or citation of the governmental reference reflecting and verifying the increase.Any increase in base rent
from cost of living increases shall be retroactive to the date that the cost of living increase first became effective according
to the government publication.

 

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7. Cost of Fire and Casualty Insurance.

Because this is a triple net lease,
Lessor shall have no duty to pay, process or otherwise deal with fire and casualty insurance. Lessee shall provide fire and
casualty insurance as provided in paragraph 15 (Provisions of Fire and Casualty Insurance). Lessor may pay the same on
Lessee's behalf, and Lessee shall reimburse Lessor for the same or Lessor may reimburse itself therefor out of the rental
payable hereunder by Lessee. Lessee shall save and hold Lessor harmless on account of any of these premiums. Lessee shall pay
Lessor maximum legal interest on any monies that Lessor may advance on behalf of Lessee until these monies are repaid.

8. Costs
of Taxes and Assessments.

Because this is a triple net lease, Lessee
shall be responsible for all taxes and assessments levied against the real property, improvements thereon and personal property
contained therein and all other taxes and assessments which may relate to the real property improvements or personal property
contained therein and all increases related to all of these. Lessor may pay the same on the Lessee's behalf, and Lessee
shall reimburse Lessor for the same or Lessor may reimburse itself therefore out of the rental payable hereunder by Lessee.
Lessee shall hold harmless the Lessor on account of any of these taxes and assessments. Lessee shall pay Lessor maximum legal
interest on my monies that Lessors may advance on behalf of Lessee until these monies are repaid.

If at any time during this lease the method
or scope of taxation used at the commencement of this lease is changed so as to cause the method of taxation to be changed in
whole or in part, so that in substitution for the real-estate taxes now assessed there may be in whole or in part a capitol levy
or other imposition based on the value of the leased premises, or the rents received therefrom, or some other form of assessment
based in whole or in part on some other valuation of the Lessor's real property comprising the demised premises, then and in such
event, substituted tax or imposition shall be payable and discharged by the Lessee in the manner required pursuant to such la
promulgated which shall authorize such change in the scope of the taxation, and as required by the terms and conditions within
the lease.

Nothing in this lease contained shall require the Lessee to pay any franchise, estate, inheritance, succession, capital
levy or transfer tax of the Lessor, or Federal Income Tax, State Income Tax, or excess profits or revenue tax, unless such taxes
are in substitution for real property taxes as a result of such change in the manner and scope of taxation.

9. Tax Protests by Lessee.

If the Lessee wishes to contest any assessment or levy of taxes on the leased premises, the Lessor
covenants and agrees that it will lend its name and execute all necessary papers to aid the Lessee in contesting or litigating
said assessment, provided, however, that said litigation or contest shall be at the cost and expense of the Lessee. Any resultant
reduction or rebate of taxes, paid or to be paid by the Lessee, shall belong to the Lessee.

10. Sales and Transaction Tax.

If paragraph three provides that Lessee shall pay sales or transaction taxes, then this paragraph
is applicable. Lessee shall pay with each rent payment the amount of any sales or transaction tax on the rental transaction. If
any sales or similar tax shall be levied or assessed by the United State of America, any state, county, city, town, district or
agency or instrumentality thereof, upon or against Lessor by reason of the execution of this lease, or upon the rentals thereby
reserved, then and in such event, Lessee shall forthwith, upon demand by Lessor, reimburse Lessor for the amount of any such taxes
or assessments paid by Lessor.

11. Security Deposit.

To insure the Lessee's prompt and full
payment of the rent, and the faithful and timely performance of all provisions of this lease, and any extension or renewal
thereof, Lessee shall pay a security deposit as set forth in paragraph 3 above. This deposit shall be provided by the
purchase of an interest bearing Certificate of Depositor its equivalent or by placing the fund in an interest bearing savings
account in the joint name of the Lessor and Lessee as provided in Section 4 paragraph 2. If any default shall be made on the
performance of any of the covenants on the part of Lessee herein contained with respect to any item or items of the leased
premises, Lessor shall be entitled to that portion of the fund as it is required to cover the default. Any such releasing of
money from the fund for this purpose shall not be a defense to any action by Lessor arising out of said default; and, upon
demand, Lessee shall restore the fund to the full amount set forth in this provision. Upon the expiration or earlier
termination of this lease, or any extension or renewal thereof; provided that the Lessee has paid all the rent herein called
for and fully preformed all of the other provisions of this lease on its part to be preformed, Lessor will release to
Lessee any remaining balance in the fund, The party who is eventually entitled to the fund in whole or in part shall also be
entitled to all the interest accrued or his pro rata share of the interest accrued.

12. Place of Paying Rent.

Lessee shall pay rent to the address of the Lessors as designated on page one of this lease, or to
any newer address of which Lessor gives written notice to Lessee.

13. Lessee pays all expenses.

This lease shall in all respects be treated as a triple net lease with all costs and expenses
paid for by Lessee, including, but not limited to, real and personal property taxes; fire, casualty, theft, and liability insurance;
trash removal; water, gas, electricity and other utilities; repairs and maintenance and all improvements.

14. Maximum
Legal Interest.

If any monies are owed under the terms of this lease, all of the provisions of the lease notwithstanding, the
parties that the party owing sums to the other as a result of performances under the lease, shall incur as a penalty of
the maximum legal rate of interest that is in effect at the actual time of the charge. Interest thus imposed shall also be
charged on any costs, legal fees, or any other obligations arising out of this lease. If the laws of the state which govern
this lease have no maximum legal interest rate, the rate shall be 10%.

 

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15. Provisions
of Fire and Casualty Insurance Policies.

Lessee shall continually keep in force, during the term of this lease and during
any extension or renewal thereof, fire and extended coverage insurance in the amount of no less than 80% of the full
insurable value of the leased premises. Lessee shall provide fire insurance protection on Lessee's stock in trade, furniture,
fixtures and other property within the leased premises, in an amount equal to the full insurable value thereof, and promise
that any insurance coverage in this regard shall contain a waiver of the insurer’s right of subornation against Lessor.

16. Waiver
of Subornation on Casualty Insurance.

Lessor hereby releases Lessee, to the
extent of its insurance coverage, from any and all liability of any loss or damage caused by fire or any of the extended
coverage casualties, notwithstanding such fire or other casualty shall be due to the fault or negligence of Lessee or its
agents, provided, however, this release shall be in full force and effect only with respect to loss or damage occurring
during such time as Lessor's policies of fire and extended coverage insurance shall contain a clause to the effect that this
release shall, not effect such policies or the right of Lessor to recover thereunder.  Lessee agrees that such insurance
policies shall include such clause as long as the same is includeable without extra costs.

Lessee shall promptly deliver to the Lessor, the original(s), or true and correct
copies of any and all such policies of insurance.

Lessee shall not carry any stock of goods or do or omit to do any act in or
about the leased premises which will in any way impair or . invalidate the obligation of any policy of insurance on or in
reference to the leased premises.

The parties shall use good faith efforts to have any and all fire, extended coverage, or
any and all material damage insurance which may be carried endorsed with the following subornation clause:

 

This insurance
shall not be invalid should the insured waive in writing, prior to a loss, any and all right of the coverage against any
party for a loss occurring to the property described herein.

Lessor and Lessee mutually agree that any
right of subornation afforded to the insurance carriers of their respective property insurance policies of relative to real or
personal property situated in or on the leased premises is waived; and the parties undertake to give their respective insurance
carriers notice of this waiver.

 

17. Liability
Insurance.

Lessee shall, at its own cost and expense, during the term of this lease, procure and maintain in force policies
of liability insurance, with Lessor as an additional assured thereunder, insuring Lessee to the amount of $2,500,000 against
any loss or damage, or any claim thereof, resulting from injury or death of any one person, and to the amount of $
$2,500,000 against any loss or damage, or any claim thereof, resulting from the injury to or death of any number of persons
from any one accident, as a result of or by reason of the ownership by Lessee of the leased premises, parking lot and
adjacent areas owned by Lessor, and the use and occupancy thereof by Lessee; and to procure and maintain in full force and
effect, during the term herein specified, a policy or policies of insurance, with Lessor as additional assured thereunder, in
an amount not less than $1,000,000, insuring Lessor against any loss or damage or any claim thereof resulting from the damage
to or destruction of any property belonging to any person or persons whomsoever, as a result or by reason of the ownership of
Lessor of the leased premises, parking lot, or adjacent areas owned by Lessor, and the use and occupancy thereof by Lessee.

Lessee shall promptly deliver to Lessor the original or originals, or a true and exact copy, of any and all such policy or
policies of insurance.

All policies shall contain a written obligation of the insurer to notify Lessor in writing at lease 10
days prior to any cancellation thereof.

18. Non-Liability
of Lessor.

Lessor shall not be liable for any damage occasioned by failure to keep the premises in repair, and shall not be
liable for any damage done or occasioned by or from plumbing, gas, water, steam, or other pipes, tanks, washstand or
wastepipe, in, above, upon or about the premises, nor for damage occasioned by water, snow, or ice being upon or coming
through the roof, skylight, trap-door, or otherwise, or of any owners or occupants of adjacent or contiguous property.

19. Indemnification.

Lessor shall not be responsible or liable for any loss, theft, or damage to property or injury to or death of Lessee or any
person on or about the leased premises, and Lessee agrees to indemnify and hold Lessor harmless therefrom unless it was
caused or resulted from the negligent or willful acts of Lessor. Lessee shall hold Lessor harmless during the term of
this lease, during any extension or renewal thereof, from and against any and all claims, suits, actions, demands and
judgments arising out of an event or events occurring after the commencement of the primary term hereof when the proximate
cause of injury to person or damage to property was not the negligence of Lessor or the negligence of an agent or employee of
Lessor or of Lessor's successor. Lessee agrees not to make any claim against Lessor, and it will hold Lessor harmless
therefrom, for any loss or damage to any personal property belonging to Lessee or any of its guests, customers, or occupants,
or for any injuries to Lessee or any of its guests, customers, or occupants unless such loss or damage was caused or resulted
from the negligent or willful conduct of Lessor.

20. Renewal.

Lessee shall have the right to renew for an additional 5 years term upon 90 days written notice to Lessor upon: Same Terms :

21. Purchase
Option.

Lessee shall have the right to purchase the
leased premises upon the giving of 60 days written notice for the total purchase price of $ 2.75 million, all in accordance with
a real property purchase contract, receipt and escrow instructions which are attached hereto.

 

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22. Use
by Lessee.

The premises shall be used for a reasonable
office, warehousing, commercial or industrial use which is specifically described as: Administrative Offices of Blue Ridge Group,
Inc. and Source Capital Group, Inc.

23. Tax on Property of Lessor.

Lessee shall pay before delinquent all taxes
and assessments levied and assessed upon or against the leased premises during the term of this lease.

24. Tax on Property of Lessee.

Lessee shall pay or cause to be paid,
before delinquency, throughout the primary, term of this lease and any renewals or extensions thereof, all taxes on any and
all personal property owned by Lessee and situated upon the leased premises. If the Lessee fails to pay the taxes levied on
or against its property as aforesaid when due and payable, Lessor may pay the same on Lessee's behalf, and Lessee shall
reimburse Lessor for the same forthwith or Lessor may reimburse itself therefore out of rental payable hereunder by.
Lessee, or Lessor may reimburse itself from the security deposit. Lessee shall save and hold Lessor harmless on account of
any of these taxes. Lessee shall pay the Lessor the maximum legal interest rate per annum on any monies that Lessor may
advance on behalf of Lessee until these monies are repaid.

25. Initial Construction and Repairs. N/A

26. Additional Space.

Lessor agrees
that, in the event that Lessee desires to lease additional space from Lessor during the term of this lease, and provided that lease
shall not be in default under the provisions of this lease, and provided that Lessor shall have space available, Lessor shall provide
additional space upon the following terms and conditions:

a. Space will be provided
in other buildings belonging to Lessor, if any, that may be hereafter described;

b. The terms
of the lease for the additional space shall be negotiated between Lessor and Lessee at the time the space is provided;

c. Lessee shall
deliver written notice in writing to Lessor of the needed for additional space not less than 180 days before the space is provided
to the Lessor.

27. Reasonable
Rules and Regulations.

In the interest
of uniformity, to conform to such reasonable and non-discriminatory rules and regulations in the use of the leased premises as
may be established from time to time by Lessor for the general use of the premises, Lessee agrees to abide by all rules and regulations
of the building imposed by the Lessor.

The regulations
are imposed for the cleanliness, good appearance, proper maintenance, good order and reasonable use of the premises and the building.

The rules and
regulations may be changed from time to time on reasonable notice to Lessee. Breach of building rules and regulations shall not
be termination of the lease unless Lessee continues to breach them after ten days written notice by Lessor, and then in the event
such rules and regulations have been made for the above-stated purpose.

28. Common Areas and parking.

The term Common
Area means the entire area designated for common use or benefit within the outer property limits of the building area, including
but not limited to, parking lots, landscaped and vacant areas, passages for trucks and other vehicles, areaways, roads, walks,
curbs, garden court and arcades, together with public stairs, ramps, shelters, porches, bus stations and loading docks, with facilities
appurtenant to each, if any such areas exist or may later exist on the real property of Lessor, but excluding any area which the
Lessor may have designated as a restricted area.

Subject to reasonable
rules and regulations to be promulgated by Lessor, the public portions of the common area are hereby made accessible to the Lessee
and its employees, agents, customers, and invitees for reasonable use in common with Lessor for the purposes for which constructed.

Lessor hereby
grants to Lessee and Lessee's agents, employees and invitees the right during the term hereof, to use, in common with others entitled
to the use thereof, such truckways, service corridors, service elevators and loading docks subject to such reasonable regulations
as Lessor shall make from time to time.

Lessee further
agrees to receive and deliver goods and merchandise and to remove all garbage and refuse only by way of the truckways and loading
docks designated by Lessor for Lessee's use.

Lessor from time
to time temporarily close portions of the common areas, erect private boundary marks or take further appropriate action to prevent
the acquisition of public rights and such action shall not be deemed an eviction or disturbance of Lessee's use of the leased premises.

Lessee shall
have, and is hereby granted, such possession and control over all portions of the entire common area, whether at the front or rear
of the leased premises, as will authorize Lessee to exclude therefrom all persons who are not customers or patrons of the Lessee
of the building area, who are or who may be creating a nuisance or disturbance thereon, and in particular as will authorize Lessee
to maintain an action in trespass against such persons who are not patrons or customers and who are or who may be picketing thereon.

Subject to reasonable
rules and regulations of the Lessor, Lessee and its employees, agents, customers and invitees shall have the use of parking areas
specifically designated by Lessor for that purpose. Lessee agrees that upon written notice from Lessor, it will, within five days,
furnish to Lessor the automobile license numbers assigned to Lessee's vehicles and the vehicles of all of its agents and employees.

 

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Lessee agrees that it shall not at any time park or permit the parking of its trucks or vehicles of others
in truck passages or adjacent loading docks so as to interfere in any way with the use thereof.

Lessee,
in common with Lessor and the patrons and customers of Lessee and Lessor shall have the right to use for parking purposes the parking
areas adjacent to the building(s) located on the real property hereinbefore described. Nothing herein contained shall be construed
in such manner as to imply that any portion of that parking area is hereby leased to that Lessee.

29. Construction and Repairs.

Lessor shall not be responsible for construction
or repairs during this lease except as otherwise provided on page one of this lease.

30. Maintenance of Heater, Cooler, Drinking Water and Locks.

Lessee shall, at its own expense, be responsible for the
installation, care, maintenance and replacement of all refrigerated air conditioning, coolers, and heating equipment and
parts thereof saving the leased premises whether or not such equipment is located on the leased premises and whether such
equipment was installed by Lessee or Lessor.

Lessee shall be responsible for locks and maintenance of
locks and doors.

 

SECTION II

GENERAL PROVISIONS

 

1. Quiet Possession.

Lessor agrees that Lessee, upon paying the
rentals and on performing all terms of this lease, shall peaceably have the leased premises during the term of this lease. Lessee
agrees that in the event of the inability of Lessor to deliver to Lessee possession of the leased premises within 60 days of the
commencement of the term as above specified, Lessor shall not be liable for any damage caused thereby, nor shall this lease be
void, but the term hereof shall be extended for a period of equal to the delay in such delivery, but Lessee shall not be liable
for rent until such time as Lessor offers to deliver possession of the leased premises to the Lessee, By occupying the leased
premises as a tenant, or installing fixtures, facilities, or equipment or performing finished work, Lessee shall be deemed to
have accepted the same and to have acknowledged that the premises are in the condition required by this lease. In the event of
any dispute, the certificate of Lessor's architect or contractor shall be conclusive that the leased premises are in the condition
required by this lease and are ready for occupancy.

2. Use of Premises.

Lessee has examined and knows the condition
of the leased premises, and has received the same in good order and repair, and agrees:

		1.	To use these premises for reasonable office, warehousing, commercial or
                                                              industrial uses which do not materially damage the leased premises.

		2.	To surrender possession of these leased premises at the expiration of this
lease without further notice to quit, in as good condition as reasonable use will permit.

		3.	To keep the premises in good condition and repair at Lessee's own
                                                              expense and not to commit or permit any waste or nuisance.
	 	4.	Not to use the leased premises for living quarters
or residence.
	 	5.	Not to make any unlawful, immoral or
improper use of the leased premises, or any occupancy thereof contrary to law or contrary to any directions, rules,
regulations, regulatory bodies, or officials having jurisdiction thereof or which shall be injurious to any person or
property.

3. Damages to Interior or Structure.

Lessee shall pay (a) for any expense,
damage or repair occasioned by the stopping of waste pipes or overflow from bathtubs, closets, washbasins, basins or sinks,
and (b) for any damage to window panes, window shades, curtain rods, wallpaper, furnishings, or any other damage to the
interior of the leased premises.

4. Repairs, Maintenance and Alterations
by Lessee.

The Lessee has promised that the leased premises
shall at all times be kept in good order, condition and repair by Lessee, at its own expense and in accordance with all laws,
directions, rules and regulations of regulatory bodies or officials having jurisdiction.

If Lessee
refuses or neglects to commence repairs within 10 days after receipt of written demand from Lessor, or adequately to complete such
repairs without liability to Lessor for any loss or damages that may accrue to Lessee's stock or business by reason thereof, and
if Lessor shall make such repairs, Lessee shall pay to Lessor, on demand, as additional rent, the costs thereof with interest at
the maximum legal rate from the date of commencement of those repairs.

Lessee
shall make no changes, improvements, alterations, or additions to the leased premises unless such changes, improvements, alterations,
or additions: (a) are first approved in writing by Lessor; (b) are not in violation of restrictions placed thereon by the investor
financing the construction of the building; and (c) will not materially alter the character of such premises and will not substantially
lessen the value thereof, Lessor may not unreasonably withhold approval, and if there is a dispute as to reasonableness, it shall
be determined by arbitration.

If structural alterations become
necessary because of the application to the business carried on by Lessee of any law, ordinance, .rule or regulation of any
regulatory body, or because of any act or default on the part of Lessee, or because Lessee has overloaded any electrical or
other facility, Lessee shall make such structural alterations at its own cost and expense, after first obtaining Lessor's
written approval of plans and specifications and furnishing such indemnification against liens, costs, damages and expenses
as Lessor may reasonably require.

 

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Lessee may place
partitions and fixtures (including light fixtures) and make improvements and other alterations in the interior of the leased premises
at its own expense. These improvements or alterations installed or made by Lessee, other than those of a structural nature, shall
remain the property or the Lessee provided, however, that prior to commencing any such work Lessee shall first obtain the written
consent of Lessor to the proposed work.

Lessor may require that such work be
done by Lessor's own employees or under Lessor's direction but at the expense of the Lessee, and Lessor may, as a condition
to consenting to such work, require that Lessee give security that the premises will be completed, free and clear of liens
and in a matter satisfactory to Lessor, and that the premises will be repaired by Lessee or restored by Lessee to its former
condition at the termination of the lease at Lessee's sole cost and expense.

5. Mechanics
and Other Liens Imposed by Lessee.

Lessee shall keep
the leased premises and the improvements thereon at all times during the term hereof free of mechanics and materialmen's liens
and other liens of like nature, other than liens created and claimed by reason of any work done by or at the instance of Lessor,
and at all times shall fully protect and indemnify Lessor against all such liens or claims and against all attorneys' fees and
 other costs and expenses growing out of or incurred by reason or on account of any such liens or claims. Should Lessee fail
to fully discharge any such lien or claim, Lessor, at its option, may pay the same or any part thereof, and Lessor shall be the
sole judge of the validity of such lien or claim.

All amounts so
paid by Lessor, together with interest thereon at the maximum legal rate from the time of payment by Lessor until repayment by
Lessee, shall be paid by Lessee upon demand, and if not so paid, shall continue to bear interest at the aforesaid rate
interest payable monthly, as additional rent.

6. No Signs without Approval of Lessor.

Any and all signs
placed by or for Lessee on the exterior of the leased premises, or on the real property on which the leased premises are located,
shall be so placed and allowed to remain in place only with the approval of Lessor in writing.

Nor shall Lessor,
or its successor or the owner of the leased premises, be charged with the costs of installing, maintaining, changing, or removing
such sign or signs. Lessor shall have the right to approve the design, type, size, lettering and location of every sign to be erected
in, upon or about the leased premises.

Any signs placed
upon or about such leased premises shall, upon the end of the term of the lease or upon the earlier termination thereof, be removed
by Lessee, and Lessee shall repair any damage to the leased premises which shall he occasioned thereto by reason of such removal.

7. No Exterior Paint Without Lessor Approval.

Lessee shall not
decorate or paint the exterior of the leased premises, or any part thereof, except in the manner, and of a color, approved by Lessor.

8. Trash
Control.

Lessee shall provide
and maintain sanitary and rat-proof receptacles with covers at or about the leased premises in which to place any and all refuse
or trash, and to place this refuse and trash in receptacles. Lessee shall make Lessee's own arrangements and pay for garbage and
trash pick-up service on or from the leased premises, and shall not permit the same to accumulate and remain on the premises except
during reasonable intervals between pick-up service.

9. Sidewalk Maintenance.

At all times, Lessee
shall keep the sidewalks in front of the leased premises clean and in a sightly and sanitary condition, and not exhibit or display
any goods, wares or merchandise thereon.

10. Replacement of Glass.

At Lessee's own
cost and expense, Lessee shall replace all glass in, upon or about the leased premises that shall be broken during the term herein
specified unless caused by Lessor, an agent or employee of Lessor, or Lessor's successor.

11. Right of Re-Entry.

Lessor shall have
the right, by itself or agent or with others, to enter the premises at reasonable hours to examine or exhibit the .premises, or
to make such repairs and alterations as shall be deemed necessary for the safety and preservation of the building, to inspect and
examine, to post such notices as Lessor may deem necessary to protect Lessor against loss from liens of laborers, materialmen or
others, and for the purpose of permitting or facilitating Lessor's performance of its obligations hereunder, or for any other reasonable
purpose which does not materially diminish Lessee's enjoyment or use of the leased premises.

Lessee expressly
waives any claim for damages, including loss of business, resulting from Lessor's entry, from the erecting of scaffolding or other
structures to facilitate repairs, or from Lessor's other reasonable activities for the purpose of altering, improving, or repairing
the leased premises in conformity herewith.

Lessee agrees to
permit Lessor, at any time within 60 days prior to the expiration of this lease, to place upon or in the window of the leased premises
any usual or ordinary For Rent or similar sign and to allow prospective tenants, applicants or agents of Lessor to enter and examine
the leased premises during the last 60 days of the term hereof, and to permit Lessor or Lessor's agents, at any time during the
term hereof, to conduct prospective purchasers through the leased premises during reasonable business hours.

12. Assignment or Sub-Letting.

No assignment, sublease or sale of this lease
or any interest therein may be made by Lessee without the written consent of Lessor having first been obtained thereto, which
consent Lessor shall grant unless Lessor has a valid reason, which can be substantiated, If there is a dispute as to whether Lessor
has a valid reason for withholding consent, it shall be determined by arbitration.

 

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Any attempted assignment, sublease or
sale of this lease or any interest therein shall be null and void and have no effect unless such consent shall have been obtained.
Any assignment by operation of law shall be subject to the same conditions and restrictions as an assignment by Lessee. If such
consent is given by Lessor, any and all sub-Lessees shall be responsible tenants, and Lessee shall not be relieved of any liability
hereunder by Lessee's assignment, vacation or subletting thereof.

It is agreed that one of the conditions moving Lessor
to make this lease is the personal confidence reposed by it in Lessee, combined with the belief that Lessee will be a tenant and
occupant satisfactory to Lessor.

Nothing herein shall prevent the. Lessor from assigning its interest under this lease, provided,
however, that any assignee Shall be subject to the same obligations and duties as the original Lessor.

13. Right of Lessor to
Pay Obligations of Lessee to Others.

If Lessee shall fail or refuse to pay any sums due to be paid by it under the provisions
of this lease, or fail or refuse to. maintain the leased promises or any part thereof as herein provided, then, and hi such event,
Lessor, after 10 days notice in writing by Lessor to Lessee, shall have the right to pay any such sum or sums due to be paid by
Lessee and to do and perform any work necessary to the proper maintenance of the leased premises; and the amount of such sum or
sums paid by Lessor for the account of Lessee and the cost . of any such work, together with interest thereon at the maximum legal
rate from the date of payment thereof by Lessor until the repayment thereof to Lessor by Lessee, shall forthwith be paid by Lessee
upon demand in writing.

The payment by Lessor of any such sum or sums Or the performance by Lessor of any such work shall be prima
facie evidence of the necessity therefor.

14. Surrender and Return of Leased Premises.

On the last day of the term hereby created
or on the sooner termination thereof, Lessee shall peaceably surrender the leased premises on good order, condition and repair,
broom clean-fire and other unavoidable casualty, reasonable wear and tear only excepted. On or before the last day of the term
hereby created or on the sooner termination thereof, Lessee shall, at its expense, remove its trade fixtures, signs and carpeting
from the leased premises and any property not removed shall be deemed abandoned. All alternations, additions, improvements and
fixtures (other than Lessee's trade fixtures, signs and carpeting) which shall have been made or installed by either Lessor or
Lessee upon the leased premises and all hard surface bonded or adhesively affixed flooring shall, without charge, remain upon
and be surrendered with the leased premises as a part thereof, without disturbance, molestation or injury.

If the leased premises
be not surrendered on the last day of the term hereby created or on the sooner termination thereof, Lessee shall indemnify Lessor
against loss or liability resulting from delay by Lessee in so surrendering the premises, including, without limitation, claims
made by any succeeding tenant founded on such delay. Lessee shall promptly surrender all keys for the leased premises, at the
place then fixed for payment of rent and shall inform Lessor of combinations on any locks and safes on the leased premises.

15.
Event of Default.

Each of the following shall be deemed an Event of Default:

1. Default in the payment of rent or other payments
hereunder,

b.               If Lessee shall default in the performance or observance of any covenant or condition of this lease by the Lessee to be

performed or observed, or if Lessee shall fail to make reasonable efforts in the light of the surrounding circumstances to keep
substantially all the premises occupied and open for business following the expiration of the period of 10 days giving notice.
of such default or defaults or failure to Lessee by Lessor.

c.              Abandonment of the premises.

d.              The filing or execution or occurrence of:

(1)              A petition in bankruptcy by or against Lessee.

(2)              A petition or answer seeking a reorganization, arrangement, composition, readjustment, liquidation, dissolution or other
relief of the same or different kind under any provision of the Bankruptcy Act.

(3)              Adjudication of Lessee as a bankrupt or insolvent:
or insolvency in the bankruptcy equity sense.

(4)              An assignment for the benefit of creditors
whether by trust, mortgage, or otherwise.

(5)              A petition or other proceeding by or against
Lessee for, or the appointment of, a trustee, receiver, guardian, conservator or liquidator of Lessee with respect to all or substantially
all its property.

(6)              A petition or other proceeding by or against
Lessee for its dissolution or liquidation, or the taking of possession of the property of the Lessee by any governmental authority
in connection with dissolution or liquidation.

(7)              The taking by any person of the leasehold
created hereby or any part thereof upon execution, attachment, or other process of law or equity.

16. Fair Notice of Default.

The parties
are desirous of giving one another fair notice of any default before sanctions are imposed. In the event of an act of default
with respect to any provision of this lease, neither party can institute legal action with respect to such default without first
complying with the following conditions:

a.              Notice of such event of default must be
in writing and mailed to the other party by U.S. Certified Mail, return receipt requested;

b.              Such written notice shall set forth the
nature of the alleged default in the performance of the terms of this lease and shall designate the specific paragraph(s) therein
which relate to the alleged act of default;

c.              Such
notice shall also contain a reasonably understandable description of the action to be taken or performed by the other party
in order to cure the alleged default and the date by which the default must be remedied, which date can be not less than ten
business days from the date of mailing the notice of default.

 

    	7

    	 

    

 

17. Termination.

Upon occurrence of any Event of Default, and
after proper notice of default has been given, Lessor may, at its option, in addition to any other remedy or right given hereunder
or by law;

a.              Give
notice to Lessee that this lease shall terminate upon the date specified in the notice, which date shall not be earlier than five
days after the giving of such notice; or,

b.              Immediately after ten days of default, and without further notice or demand, enter
upon the leased premises or any part thereof, in the name of the whole, and upon the date specified hi such notice, or any other
notice pursuant to law, or upon Such entry, this lease and the term thereof shall terminate.

18. Repossession.

Upon termination
of this lease .as hereinabove provided, or pursuant to statute, or by summary proceedings or otherwise, the Lessor, may enter forthwith,
without further demand or notice upon any part of the premises, in the name of the whole, if he has not theretofore done so, and
resume possession wither by summary proceedings, or by action at law or in equity, or by force or otherwise, as Lessor may determine,
without being liable in trespass or for any damages. In no event shall such re-entry or resumption of  possession or reletting
as hereafter provided be deemed to be acceptance or surrender of this lease or a waiver of the rights or remedies of Lessor hereunder.

19. Court
Action, Attorneys Fees and Costs.

If, upon failure of either party to comply with any of the covenants, conditions, rules or regulations of and
in this lease, suitor arbitration should be brought for damages on account thereof, or to enforce the payment of rent herein stipulated,
or to recover possession of the premises or to enforce any provision hereof; the losing party agrees to pay to the prevailing
party reasonable costs and expenses incurred in prosecuting these suits or arbitration, as determined by the court or arbitrator,
including attorneys? fees and the value of time lost by the prevailing party or any of its employees in preparing for or participating
in any arbitration or litigation in connection therewith, Interest shall accrue on that award at the maximum legal rate on all
monetary amounts awarded for principal, interest, attorney fees, costs and all other amounts, from the date of that award until
paid.

20. Default by Lessor

In the event of
any default by Lessor, Lessee, before exercising any rights that it may have at law to cancel this lease, must first send notice
by registered or certified mail to Lessor, and shall have offered Lessor fifteen (15) days in which to correct and cure the default
or commence a good faith effort to cure such default.

21. Reletting
after Termination.

Upon
termination of this lease in any manner above provided, Lessor shall use reasonable efforts to relet the premises.

Lessor shall be
deemed to use reasonable efforts if it leases the whole or any part of the premises, separately, or with other premises, for any
period equal to or less than or extending beyond the remainder of the original term, for any sum or to any Lessee or for any use
it deems reasonably satisfactory or appropriate.

22. Damages.

Upon termination
of this lease in any manner above provided, or by summary proceedings or otherwise, Lessee shall pay to Lessor forthwith without
demand or notice the sum of the following:

a.              All rent, additional rent and other payments accrued to the date of such termination and a proportionate part of the rent
otherwise payable payable for the month in which such termination occurs.

b.              The costs of making all repairs, alterations and improvements required to be made by Lessor hereunder, and of performing
all covenants of Lessee relating to the condition of the premises during the term and upon expiration or sooner termination of
this lease, such costs to be deemed prima facie to be the costs estimated by a reputable architect or contractor selected by Lessor
or the amounts actually expended or incurred thereafter by Lessor.

c.              The attorneys' fees and other
costs detailed in paragraph 19 (Court Action, Attorneys' Fees and Costs).

d.              An amount equal
to liquidation damages or indemnity payments whichever is larger, determined and payable as set forth below:

(1)              Liquidation damages means an amount equal
to the excess of the rent, additional rent and other payments reserved in this lease for the portion of the term remaining after
termination of the lease (Hereinafter referred to as the unexpired term) over the then fair and reasonable rental value of the
premises for such period of the term.

(2)              Indemnity payments means all the rent, additional rent and other payments reserved under this lease which would have become
due and owing thereunder from time to time during the unexpired term, less, to the extent not previously deducted or credited,
the rent, additional rent and other payments actually collected and allocable to the premises or to the portions thereof relet
by Lessor, and plus, to the extent not previously charged, the costs and expenses, including but not limited to reasonable attorneys’
and brokers’ fees and expenses, paid or incurred by Lessor in connection with:

(a)              Obtaining
possession of the premises.

(b)              Removal
and storage of Lessee's or other occupant's property.

(c)              Care,
maintenance and repair of the premises while vacant,

(d)              Reletting
the whole or any part of the premises (which reletting may be for a period or periods of time less than the unexpired term hereof
or extending beyond the term hereof.)

(e)              Repairing,
altering, renovating, partitioning, enlarging, remodeling or otherwise putting the premises, either separately or as part of larger
premises, into condition acceptable to, and reasonably necessary to obtain new tenants,

 

    	8

    	 

    

 

Such costs and expenses
shall be deemed prima facie to be the amounts therefor invoiced to Lessor or actually expended or incurred therefor by Lessor.

Lessee shall,
without prior demand or notice, make indemnity payments monthly on arrears with respect to such portion thereof as includes
rent (as distinguished from additional rent and other payments) and upon the respective dates provided therefor in the lease
with, respect to additional rent and other payments, Lessor may sue for all such indemnity payments as they accrue without
waiting until the date fixed in the lease as the expiration date thereof. Any action or proceeding to recover liquidated
damages shall not be a waiver of Lessor's right to recover indemnity payments and vice versa, but in any
action or proceeding to recover indemnity payments to the extent that they include rent (as distinguished from additional
rent and other payments), brought contemporaneously With or after an action or proceeding to recover liquidated damages
which has not been discontinued, there shall be deducted from the claim for indemnity payments (to the extent not previously
deducted or credited) such portion of the liquidated damages as is in the same proportion to such liquidated damages as the
portion of the unexpired term from which monthly indemnity payments have accrued bears to the unexpired term.

23. Operating Costs.

All operating expenses of Lessee of whatever nature,
are the sole obligation of Lessee.

24. Landlord’s Lien.

Upon the termination of this lease in
any of the manners herein provided, or upon default by Lessee under any of the provisions hereof, Lessor may enter the leased
premises and remove any and all personal property of Lessee and may retain possession of such personal property until all
charges of any kind, including rent, storage or damages, shall be paid in full.

25. Abandonment.

If
Lessee shall be in default in the payment of the rental and shall vacate or abandon the premises or any part thereof (an absence
of Lessee therefrom for a period of five days after such default shall be considered such an abandonment thereof), Lessor may,
if it so elects, re-enter the leased premises and remove. the contents and take possession of the leased premises and relet the
same or any part thereof, at such rental and upon such terms and conditions as it may deem proper and apply the proceeds thereof,
less the expenses, including the usual agent’s commission so incurred, upon the amount due from Lessor hereunder, and Lessee
shall be liable for any deficiency.

If Lessor
shall take possession of the premises and relet the same, such reletting shall not operate as a termination of this lease unless
Lessor so elects, such election to be evidenced by written notice to Lessee; nor shall such action by Lessor operate as a waiver
of any rights or remedies or Lessor hereunder.

26.
Holdover

If
Lessee shall holdover after the expiration of the term hereof, with the consent of Lessor, express or implied, such tenancy shall
be from month to month only, and not a renewal hereof; and Lessee agrees to pay rent and all other charges as hereinabove provided,
and also to comply with all covenants of this lease for the time Lessee holds over. If Lessee shall hold over without the consent
of Lessor, express or implied, then Lessee shall be construed to be a tenant at sufferance at double the rent herein provided,
prorated by the day until possession is returned to Lessor, If Lessee shall hold over with the consent of Lessor. Lessee shall
be entitled to possession until Lessor has given Lessee 30 days notice that such month to month tenancy shall be terminated; otherwise,
notice is only required as hereinafter provided as notice of default.

27.
Destruction of Leased Premises.

If the
leased premises shall, at any time during the term herein specified, be damaged or destroyed by fire or other unavoidable casualty
to the extent that the leased premises shall be unfit for occupancy and use by Lessee, and to the extent that the same cannot be
rebuilt or restored by Lessor within 120 days thereafter, then and in such event, either Lessor or Lessee may, at their respective
option, terminate this lease by notice in writing to the other of them within ten days after such damage or destruction; provided,
however if the leased premises can be rebuilt or restored within 120 days, Lessor shall, at its own cost and expense and with due
diligence, rebuild and restore the leased premises, and a just and proportionate part only of the rentals hereby reserved shall
be paid by Lessee to Lessor until such work shall have been completed. During such reconstruction, should the Lessee be forced
to lease other premises, such amount paid for the other premises shall be deducted from the amount owed to Lessor, provided that
such deduction shall not exceed the amount owed Lessor.

If
Lessor shall rebuild or restore the leased premises, then and in such event, the full amount of the insurance payable under policies
of fire insurance shall be paid to Lessor for use in the rebuilding and restoration of the leased premises.

28. Removal of Trade Fixtures.

Lessee
shall have the right, upon the expiration of the term of this lease, or at any time during such term if Lessee shall not be in
default, to remove from the leased premises all fixtures and equipment placed thereon by Lessee, even though permanently affixed
to the leased premises; provided, however, that Lessee, in effecting removal, shall restore the leased premises to a good, safe,
sound, orderly and sightly condition.

29. Eminent Domain.

If the
leased premises or any part thereof shall be taken by eminent domain, which taking shall render the remainder of the leased promises
unsuitable for occupancy and use by Lessee for the purpose intended by Lessee, then and in such event, the full current amount
payable to the date of taking, or the prorated amount of that month’s rent to the date of taking, shall be paid to Lessor, and
this lease shall terminate as of the date of taking.

 

    	9

    	 

    

 

If only a part of the
leased premises shall be taken by eminent domain, and such taking shall not unduly interfere with the occupancy and use of
the leased premises for the purpose intended by Lessee, then and in such event, the full amount payable for and upon such
taking shall be paid to Lessor, and from and after the date of such taking only a just and proportionate part of the rentals
for the leased premises hereby reserved shall be paid by Lessee.

Lessee
shall have the right to claim and recover from the condemning authority, but not from Lessor, such compensation as may be separately
awarded or recoverable by Lessee in Lessee's own right on account of any and all damage to Lessee's leasehold interest, to Lessee's
business by reason of the condemnation, and for or on account of any cost or loss to which Lessee might be put in removing Lessee's
merchandise, furniture, fixtures, leasehold improvements and equipment.

30. Subordination.

If Lessor shall desire at any time, and
from time to time to secure a loan or loans upon the security of the real property and the improvements thereon, including
the leased premises, then and in such event, Lessee hereby agrees to make and enter into a subordination agreement or
agreements with any responsible lending agency that Lessor shall, designate, wherein and whereby Lessee's rights, titles and
interests in and to the real property and the improvements are subordinated to the lien of any mortgage or mortgages to be
made, executed and delivered by Lessor as security for that loan or loans; provided, however, that the subordination shall be
upon the following conditions:

a.              The execution of the subordination agreement
or agreements by Lessor shall impose no personal liability whatsoever upon Lessee.

b.              Any such mortgage or mortgages shall
provide that the mortgagee shall agree to give to Lessee all notices required to be given to Lessor as mortgagor under the
terms and conditions of those mortgages, or any loan agreement or agreements, or under the laws of the state where the leased
premises are situated,

c.              The mortgage or mortgages shall further provide that in the event of any default on the part of Lessor under the terms and
conditions thereof or the obligation secured, Lessee may, at its own election, cure such default, and any amount expended by
Lessee in so doing shall be paid by Lessor to Lessee, with interest thereon at the maximum legal rate per annum from the time
or times any expenditure or expenditures for such purpose were made, upon demand by Lessee therefor.

d.              Lessor
shall indemnify and hold harmless the Lessee of and from any and all liability, cost or expense to which Lessee may be put by reason
of the failure of Lessor to keep and perform any of the covenants and agreements set forth and contained in such mortgage or mortgages
and the obligations thereby secured.

31. Sale by Lessor.

In the
event of a sale or conveyance by Lessor of all or part of the leased premises, the same shall operate to release Lessor from any
future liability upon any of the covenants or conditions, express or implied, herein contained in favor of Lessee, and in such
event Lessee agrees to look solely to the responsibility of the successor in interest of Lessor in and to this lease, This lease
shall not be affected by any such sale, and Lessee agrees to attorn to the purchaser or assignee.

32. Applicable Law.

This
lease shall be subject to and governed by the laws of the state where the leased premises are situated, regardless of the fact
that one or more of the parties now is or may become a resident of a different state.

33. Assignment of Personal Property Warranties.

Lessor
hereby assigns to Lessee any and all rights it has under any manufacturers' or dealers' warranties covering the personal property
and fixtures leased herein.

34. If any prorations are required to be made under the terms of this lease, the prorations shall be made as of the first day
of the lease term.

 

SECTION III

GENERAL PROVISIONS

 

1. Arbitration

At the option of either party,
disputes may be settled by arbitration. The manner of arbitration shall be as follows:

The
parties adopt by reference the provisions of the Uniform Arbitration Act and agree that, should any bona fide disputes arise out
of this agreement or out of the agreed performances of the parties pursuant thereto, the parties may elect to arbitrate that dispute
by the Lessor and Lessee selecting and agreeing upon a disinterested attorney to serve as arbitrator.

Should
one of the parties or his attorney refuse or delay the selection of an arbitrator for more than ten days after the mailing of written
notice, mailed to its last known address, stating a desire to arbitrate, then the party desiring arbitration may petition the court
or a court commissioner ex parte to have an arbitrator selected, and the costs and reasonable attorneys' fees for this shall be
charged against the delinquent party in the arbitration award.

The parties shall share the costs of the arbitrator’s services, comply with his arbitration procedures, and abide by his award within ten days after receiving a copy of his decision.

If, for some reason, the parties cannot agree
on a disinterested attorney, then the parties shall each select one attorney apiece, and these two attorneys shall select a disinterested
attorney.

The
arbitrator shall assess the fees of the arbitrator against the losing party based upon the prevailing hourly rates and out-of-pocket
expenses.

After the award by the arbitrator, should
the losing party take the matter to court, then the arbitrator shall set an amount as reasonable attorneys' fees and costs of
the contemplated court proceedings for the losing party to pay to the other party as a prerequisite to the filing of a court action
by the losing party.

 

    	10

    	 

    

 

Should it be necessary for either party to seek the assistance of a court to enforce the arbitration award,
then, in that event, the losing party shall pay to the winning party an amount which is determined by the court for the court
costs, reasonable attorneys' fees, and the time lost to the winning party for his or his agents' having to prepare for and appear
in a court action.

2. Corporate
Lessee.

If Lessee is a corporation, then if, at any time during the term of this lease, any part or all the corporate shares shall
be transferred by sale, assignment, bequest, inheritance, operation. of law or other disposition, so as to result in a change
in the present control of the corporation by the person or persons now owning a majority of the corporate shares, Lessor may terminate
this lease and the demised term at any time after such change in control by giving Lessee 60 days prior written notice of such
termination.

3. Corporate Authority.

If Lessee is a corporation, each person executing this lease represents and warrants that he is duly authorized to execute and
deliver this lease on behalf of the corporation. Those persons further represent that the tents of this lease are binding upon
the corporation. The corporation shall deliver to Lessor a certified copy of its Board of Directors resolution ratifying or authorizing
the execution of this lease within thirty (30) after its execution.

4. Nature of Relationship Between Parties.

The sole relationship between the parties created by this agreement is
that of Lessor and Lessee, Nothing contained in this lease shall be deemed, held, or construed as creating a joint venture or
partnership between the parties.

5. Notices.

Copies of all notices and communications concerning this lease shall be mailed to the parties at the, addresses
written on page one of this lease, and any change of address shall be communicated to the other party in writing. Any documents
which may adversely affect the rights of any party to this lease shall be dispatched by certified mail, return receipt requested.
For all documents mailed to persons in the continental United States, the time period on all notices shall begin running on the
day following the date that the document is postmarked. For documents mailed to persons outside the continental United States,
the time period begins to run on the date that the document is received by the other party.

6. Waiver and Consent.

Lessor's consent to or waiver of any of the terms or conditions of the lease on any one occasion shall
not be deemed a waiver or consent with regard to any such term or condition for any other occasion or to any other act or conduct.
The waiver by Lessor of any breach of any term, covenant or condition herein contained shall not be deemed to be a waiver of any
subsequent breach of the same or any other term, covenant or condition.

Whenever under this lease provision is made for Lessee
to secure the written consent or approval by Lessor, such consent or approval shall be in writing and shall not be unreasonably
withheld.

No covenant, term or condition of this lease shall be waived except by written consent of the Lessor and the forbearance
by Lessor in any regard whatsoever shall not constitute a waiver of the covenant, term or condition to be performed.

7. Provisions
of Lease.

Each term and each provision of this lease to be performed by Lessee shall be construed to be both a covenant and a condition.

 

SECTION IV

CONSTRUCTION AND
INTERPRETATION

 

1. Entire
Agreement.

The terms of this document constitute the entire agreement between the parties, and the parties represent that there
are no collateral agreements not otherwise provided within the terms of this agreement.

2. Stakeholding.

If any earnest money or security deposit or bond is required by this agreement, it shall be provided by the
purchase of an interest-bearing certificate of deposit or its equivalent or by placing the funds in an interest-bearing saving
account in the joint names of the adverse contracting parties. The certificate of deposit or the savings account passbook shall
be placed in escrow with a stakeholder other than the parties until the conditions or performance occur which permit the release
of the funds or require the return of the funds, at which time the parties shall jointly sign the necessary documents to release
the funds. The party who is eventually entitled to the funds in whole or in part shall also be entitled to all the interest accrued
on his pro rata share of such funds.

3. Interpretation.

Whenever any word is used in this agreement in the masculine gender, it shall also be construed as being
used in the feminine and neuter genders, and singular usage shall include the plural and vice versa, all as the context shall
require.

4. Partial Invalidity.

If any provision of the contract is held to be invalid or unenforceable, all the remaining provisions shall nevertheless continue
in full force and effect.

5. Marginal Headings.

The marginal and topical headings of the paragraphs of this agreement are for convenience
only, and are not to be considered a part of this agreement or used in determining its content or context.

6. Modification.

Any
modification or amendment off this agreement shall be in writing and shall be executed by all parties.  

 

    	11

    	 

    

 

 

	/s/ Robert Burr	 	/s/ Stephen Larkin
	Signature of Lessor	 	Signature of Lessee 
	 	 	 
	 	 	 
	 	 	 
	Signature of Lessor	 	Signature of Lessee  
	 	 	 
	 	 	 
	State of Kentucky	)	 
	County of Warren	)ss	 

 

Subscribed and sworn before me this 27th day of November, 2012,

by Robert Burr 

Notary Public Kimberly Dawn Flora (Seal)

my commission expires 04/12/2016

 

 

	State of Kentucky	)	 
	County of Warren	)ss	 

 

Subscribed and sworn before me this 27th day of November, 2012,

by Stephen Larkin 

Notary Public Kimberly Dawn Flora (Seal)

my commission expires 04/12/2016

 

 

    	12

    	 

    

 

Exhibit A

BUILDING SKETCH

 

 

 

 

 

Office Square Feet- 10,782

 

Warehouse,Gym

Print Room, Other

Square Feet -13,423

 

Total- 24,205

 

    	13EXHIBIT 10.36

 

OPERATING AGREEMENT

 

OPERATING AGREEMENT OF 2011-12
OPPORTUNITY FUND 6-1, LLC

 

THIS OPERATING AGREEMENT (this “Agreement”)
was made and entered into as of the 10th day of October, 2012, by and among Bayou City Exploration, Inc. and Blue Ridge Group,
Inc. as managing members of Opportunity Fund VI, LLC, Bayou City Opportunity Fund I, LLC and Opportunity Fund VII, LLC (the “Members”),
and 2011-12 Opportunity Fund 6-1, LLC, a Delaware limited liability company (the “Company” or “Fund”).

  

WITNESSETH

 

WHEREAS, the Members and the Company desire to enter
into an Operating Agreement to govern the Company’s operations;

 

NOW, WHEREFORE, in consideration for the mutual
agreements, covenants and premises set forth herein, the Operating Agreement is hereby adopted:

 

ARTICLE 1

DEFINITIONS

 

Defined Terms. Unless
otherwise stated, the terms used in this Agreement shall have the usual and customary meanings associated with their use, and shall
be interpreted in the context of this Agreement. Certain capitalized terms which are used in this Agreement shall have the meanings
given in this Agreement or Schedule 1.1.

 

ARTICLE II

FORMATION;
PURPOSE

 

2.1 Organization; Governance. The
Members have caused the formation of the Company on October 10th, 2012 (the “Effective Date”) as a limited liability
company effective with the filing of the Articles of Organization (the “Articles”) with the Delaware Secretary of State.
The Company has been formed pursuant to the provisions of the Delaware Statutes and upon the terms and conditions set forth in
the Articles and in this Agreement. The Initial Member(s) together with all Persons who may hereafter become Members of the Company
from time to time in accordance with this Agreement (collectively, the “Members”) are and shall be bound by the terms
and provision of this Agreement. The Manager is authorized to execute and cause to be filed additional Amendments to the Articles
whenever required by the Act or this Agreement. Except as otherwise required by the Act, this Agreement shall govern the business
and affairs of the Company and the relationships of the Members to one another as members of the Company. The Members intend that
the Company be treated as a partnership for federal and state income tax purposes but that the Company shall not be treated as
a partnership for purposes of Section 303 of the Federal Bankruptcy Code. No Member shall act inconsistently with this intent.

 

2.2 Term. The term of
the Company commenced on the date the Articles were filed as described in Section 2.1 and continue perpetually unless earlier terminated
under the provisions of this Agreement or by operation of law.

 

    	1

    	 

    

 

2.3 Name. The business of the Company shall be
carried on under the name “2011-12 Opportunity Fund 6-1, LLC.”

 

2.4 Purpose. The primary purpose of the Company
is to house and manage the loan assets purchased by Opportunity Fund VI, VII and BYCX I and to distribute revenue based on pro-rata
ownership and do all things reasonably related thereto.

 

2.5 Place of Business. The
principal place of business of the Company is and will be located at 632 Adams Street, Suite 700, Bowling Green, Kentucky 42101,
until the Manager changes it after giving the Members notice. In addition, the Company may maintain such other offices and places
of business in the United States as the Manager may deem advisable. The Manager will file all necessary or desirable documents
to permit the Company to conduct its business lawfully in any state or territory of the United States.

 

2.6 Agent for Service of Process.
The name and business address of the agent for service of process for the Company is Travis Creed, 632 Adams Street, Suite
700, Bowling Green, Kentucky 42101, or such other person as the Manager shall appoint from time to time, utilizing the Manager’s
reasonable discretion.

 

2.7 Nature of Members' Membership
Units. The Membership Units of the Members in the Company shall be directly proportionate to the member’s contributions.

  

THE MANAGER

 

3.1 Control in Manager. Subject to the provisions of
Section 3.2 and except as otherwise expressly stated elsewhere in this Agreement, the Manager has exclusive control over the business
of the Company (with all acts and decisions being in its sole discretion except as specifically set forth in this Agreement), including
the power to assign duties, to determine how to invest the Company’s assets, to sign bills of sale, title documents, leases,
notes, assignments, security agreements, documents evidencing Note Investments and contracts, and to assume direction of the business
operations. As Manager of the Company and its business, the Manager has all duties generally associated with that position, including
dealing with Members, being responsible for all accounting, tax and legal matters, performing internal reviews of the Company’s
investments and loans, determining how and when to invest the Company’s capital, and determining the course of action to
take for Company loans and land contracts that are in default. The Manager also has all of these powers for ancillary matters.
Without limiting the generality of the foregoing, the powers include the right (except as specifically set forth in Section 3.2
and elsewhere in this Agreement):

 

3.1.1: To evaluate potential Company investments,
to expend the capital of the Company in furtherance of the Company’s business;

  

3.1.2: To acquire, hold, lease,
sell, trade, exchange, or otherwise dispose of all or any portion of Company property or any interest therein at a price and upon
the terms and conditions as the Manager may deem proper;

 

    	2

    	 

    

 

3.1.3: To cause the Company
to become a joint venturer, general or limited partner or member of an entity formed to own, develop, operate and dispose of real
and personal properties owned or co-owned by the Company acquired through foreclosure of a Note Investment.

 

3.1.4: To manage, operate
and develop Company property, including Real Property acquired by the Company in connection with the foreclosure of the Mortgage
securing a Mortgage Note, or to employ and supervise managers who may, or may not, be an Affiliate of the Manager;

 

3.1.5: To maintain, at the
expense of the Company, adequate records and accounts of all operations and expenditures and furnish the Members with annual statements
of account as of the end of each calendar year, together with all necessary tax-reporting information;

 

3.1.6: To purchase, at the expense of the Company,
liability and other insurance to protect the property of the Company and its business;

 

3.1.7: To refinance, recast, modify, consolidate,
extend or permit the assumption of a Note Investment or other investment owned by the Company;

 

3.1.8: To pay all expenses incurred in the operation
of the Company;

 

3.1.9: To file tax returns on behalf of the Company
and to make any and all elections available under the Code;

 

3.1.10: To modify, delete, add to or correct from time
to time any provision of this Agreement as permitted under Section 15.4 hereof; and

 

3.1.11: To admit Persons as additional members
of the Company in Manager’s sole discretion.

 

3.2 Limitations on Manager’s Authority.
The Manager has no authority to:

 

3.2.1: Do any act in contravention of this Agreement;

 

3.2.2 : Do any act which would make it impossible to
carry on the ordinary business of the Company;

 

3.2.3: Confess a judgment against the Company;

 

3.2.4: Possess Company property or assign the
rights of the Company in the property for other than a Company purpose;

 

3.2.5: Admit a person as a Manager without the prior
affirmative vote or consent of a Super Majority or any higher vote as may be required by applicable law;

 

3.2.6: Sell all or a majority
of the assets of the Company in one or a series of related transactions that is not in the ordinary course of business, without
the prior affirmative vote or consent of a Super Majority;

 

    	3

    	 

    

 

3.2.7: Amend this Agreement without the prior
affirmative vote or consent of a Majority, except as permitted by Section 15.4 of this Agreement;

 

3.2.8: Dissolve or terminate the Company without
the prior affirmative vote or consent of a Super Majority except as otherwise provided in this Agreement;

 

3.2.9: Cause the merger or other reorganization
of the Company without the prior affirmative vote or consent of a Super Majority;

 

3.2.10: Grant to the Manager or any of its Affiliates
an exclusive right to sell any Company assets;

 

3.2.11: Use or permit another Person to use the Company’s
assets in any manner, except for the exclusive benefit of the Company or permit the Company to engage in any activities inconsistent
with or in addition to the stated purposes of the Company;

 

3.2.12: Pay or award, directly
or indirectly, any commissions or other compensation to any Person engaged by a potential investor for investment advice as an
inducement to the advisor to advise the purchase of units in the Company; or

 

3.2.13: Make loans to the Manager or an Affiliate of
the Manager.

 

3.3 Extent of Manager’s
Obligation and Fiduciary Duty. The Manager shall devote the portion of its time to the business of the Company as it determines,
in good faith, to be reasonably necessary to conduct the Company’s business. The Manager shall not be bound to devote all
of its business time to the affairs of the Company, and the Manager and its Affiliates may engage for their own account and for
the account of others in any other business ventures and employments, including ventures and employments having a business similar
or identical or competitive with the business of the Company. The Manager has fiduciary responsibility for the safekeeping and
use of all funds and assets of the Company, whether or not in the Manager’s possession or control, and the Manager will not
employ, or permit another to employ the Company’s funds or assets in any manner except for the exclusive benefit of the Company.

 

3.4
Indemnification of Manager. Except as limited by law, the Fund shall indemnify the Manager for all expenses, losses, liabilities
and damages the Manager actually and reasonably incurs in connection with the defense or settlement of any action arising out of
or relating to the conduct of the Fund’s activities, except an action with respect to which the Manager is adjudged to be
liable for breach of a fiduciary duty owed to the Fund or the Members under the Act or this Agreement. The Fund shall advance the
costs and expenses of defending actions against the Manager arising out of or relating to the management of the Fund, provided
it first receives the written undertaking of the Manager to reimburse the Fund if ultimately found not to be entitled to indemnification.

 

    	4

    	 

    

 

3.5 Resignation of Manager.
The Manager may resign from the Company provided, however, that the resignation shall not be effective until the earlier of
the appointment of a replacement Manager by a Super Majority or 120 days following the date that Manager gave written notice to
the Members of its resignation. Failure of a Super Majority to designate and admit a new Manager within said 120 days shall dissolve
the Company, in accordance with the provisions of Article 12 of this Agreement. The resigning Manager shall not be liable for any
debts, obligations or other responsibilities of the Company or this Agreement arising after the effective date of the resignation.

 

3.6 Removal of Manager.
The Members may remove the Manager (i) upon Manager’s dissolution or bankruptcy or (ii) by written consent or vote of
a Super Majority (excluding any Units of the Manager being removed). This removal of the Manager, if there is no other Manager,
shall not become effective until the earlier of the appointment of a replacement Manager by a Super Majority or 120 days following
the date that the Super Majority consented to the removal. Failure of a Super Majority to designate and admit a new Manager within
120 days from the date that the Super Majority elected to remove the Manager shall dissolve the Company, in accordance with the
provisions of Article 12 of this Agreement. The removed Manager shall not be liable for any debts, obligations or other responsibilities
of the Company or this Agreement arising after the effective date of the removal. The appointment of a new Manager, if any, shall
be effective upon written acceptance of the duties and responsibilities of a Manager by the new Manager. The new Manager shall
thereupon execute, acknowledge and file an amendment to the Articles of Organization of the Company in the manner required by Delaware
Statutes.

 

3.7 Payments at Resignation
or Removal. Upon the resignation or removal of the Manager, the Company shall pay to the Manager a sum equal to all amounts
then accrued and owing to the Manager.

 

3.8 Appointment of Additional Manager(s). An
additional Manager may be admitted to the Company with the consent of all Managers and a Super Majority.

  

 

ARTICLE 4

DISTRIBUTIONS; PROFITS AND LOSSES

 

4.1 Distributions.

 

4.1.1: Distributions of “Cash
for Distribution”. Except as otherwise provided in Sections 7.2 and 12 of this Agreement, Cash for Distribution shall be
distributed to the Members for each calendar quarter in arrears, to each Member in proportion to the Participation Percentage of
the Member as of the last day of the quarter to which the distribution pertains.

 

4.1.2:Reserved

 

4.1.3: Cash Distributions
Upon Dissolution. Upon dissolution and winding up of the Company, the Company shall thereafter distribute all Cash for Distribution
available for distribution, if any, to the Members in accordance with the provisions of Section 12.3 of this Agreement.

 

    	5

    	 

    

 

4.2 Restriction on Distributions.
The Company shall make no distribution to the Members unless the assets of the Company following such distribution will exceed
the total liabilities of the Company, excluding liabilities to Members based on their contributions.

 

4.3 Allocation of Profits
and Losses. After giving effect to the special allocations set forth in Section 7.5, the Manager shall allocate all Company
Profits and Losses for any fiscal year to the Members in proportion to their respective Participation Percentages. In determining
the allocations to Members for any quarterly period during a fiscal year, the Manager may allocate to the Members all Profits and
Losses realized by the Company during such quarter as of the close of business on the last day of such calendar quarter without
regard to Profits and Losses realized for time periods within the quarter, or in such other manner selected by the Manager and
permitted under Section 706 of the Code and the Treasury Regulations hereunder.

 

4.4 Reserved

 

4.5 Special Allocation Rules.

 

4.5.1: Any Member with a deficit
Capital Account balance resulting in whole or in part from allocations of loss or deduction (or item thereof) attributable to non-recourse
debt which is secured by Company property shall, to the extent possible, be allocated income or gain (or item thereof) in an amount
not less than the Minimum Gain at a time no later than the time at which the Minimum Gain is reduced below the sum of the deficit
Capital Account balances. This section is intended and shall be interpreted to comply with the requirements of Treasury Regulation
Section 1.704-2(f).

 

4.5.2: If any Member unexpectedly
receives any adjustment, allocation,or distribution described in Sections 1.704-1(b)(2)(ii)(d)(4) through 1.704-1(b)(2)(ii)(d)(6)
of the Regulations which causes or increases a deficit in the Member’s Capital Account as of the end of the tax year to which
the adjustment, allocation or distribution relates, items of Company income and gain shall be specially allocated to such Member
in an amount and manner sufficient to eliminate, to the extent required by the Regulations, the Capital Account deficit of the
Member as quickly as possible, provided that an allocation pursuant to this Section 7.5.2 shall be made if and only to the extent
that the Member would have a Capital Account deficit after all other allocations provided for in Section 7.3 through 7.6 have been
tentatively made as if this Section 7.5.2 were not in the Agreement.

  

4.5.3: To the extent an adjustment
to the adjusted tax basis of any Company asset pursuant to Code Section 734(b) or Code Section 743(b) is required, pursuant to
Regulations Section 1.704-1(b)(2)(iv)(m), to be taken into account in determining Capital Accounts as the result of a distribution
to a Member in complete liquidation of his Interest in the Company, the amount of the adjustment to the Capital Accounts shall
be treated as an item of gain (if the adjustment increases the basis of the asset) or loss (if the adjustment decreases the basis)
and the gain or loss shall be specially allocated to the Members in a manner consistent with the manner in which their Capital
Accounts are required to be adjusted pursuant to such Section of the Regulations.

 

4.5.4:For purposes of determining the Profits,
Losses or any other items allocable to any period, these other items shall be determined on a daily, monthly, quarterly or other
basis, as determined by the Manager using any permissible method under Section 706 of the Code and the Treasury Regulations hereunder.

 

    	6

    	 

    

 

4.5.5: Notwithstanding Section
7.3, Profits and Losses, if any, allocable to the period before the admission of any Members shall be allocated to the Initial
Member. Profits or Losses allocable to the period commencing with the admission of Members and all subsequent periods shall be
allocated in accordance with Section 7.3.

 

4.5.6: Except as otherwise
provided in this Agreement, all items of Company income, gain, loss, deduction, and any other allocations not otherwise provided
for shall be divided among the Members in the same proportions as they share Profits or Losses, as the case may be, for the year.

 

4.5.7: The Members are aware
of the income tax consequences of the allocations made by this Article 7 and hereby agree to be bound by the provisions of this
Article 7 in reporting their shares of Company Profits, Losses and other allocable items for income tax purposes.

  

4.6 Code Section 704(c) Allocations.

 

4.6.1: Income, gains, losses
and deductions, as determined for Federal income tax purposes, for any Company asset which has a Gross Asset Value that differs
from its adjusted basis for Federal income tax purposes shall, solely for Federal income tax purposes, be allocated among the Members
so as to take account of any variation between the adjusted basis of the Company asset to the Company for Federal income tax purposes
and its initial Gross Asset Value in accordance with Code Section 704(c) and the Treasury Regulations hereunder. In furtherance
of the foregoing, it is understood and agreed that any income, gain, loss, or deduction attributable to Code Section 704(c) property
shall be allocated to the Members in accordance with the traditional method of making Code Section 704(c) allocations, in accordance
with Treasury Regulation Section 1.704-3(b).

 

4.6.2: If the Gross Asset
Value of any Company asset is adjusted, subsequent allocations of income, gain, losses and deductions, as determined for Federal
income tax purposes, for the Company asset shall, solely for Federal income tax purposes, take account of any variation between
the adjusted basis of the Company asset for Federal income tax purposes and its Gross Asset Value in the same manner as under Code
Section 704(c) and the Treasury Regulations hereunder.

 

4.6.3: Allocations under
this Section 7.6 are solely for purposes of Federal, state and local income taxes and shall not affect, or in any way be taken
into account in computing any Member’s Capital Account.

 

4.6.4: Except as otherwise
set forth in this Agreement, any elections or other decisions relating to allocations under this Section 7.6 shall be made by the
Manager, with the review and concurrence of the Company’s accountants, in a manner that reasonably reflects the purpose and
intention of this Agreement.

 

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4.7 Intent of Allocations.
It is the intent of the Company that this Agreement comply with the safe harbor test set out in Treasury Regulation Sections
1.704-1(b)(2)(ii)(d) and 1.704-2 and the requirements of those Sections, including the qualified income offset and minimum gain
charge- back, which are hereby incorporated by reference. If, for whatever reasons, the Company is advised by counsel or its accountants
that the allocation provisions of this Agreement are unlikely to be respected for federal income tax purposes, the Manager is granted
the authority to amend the allocation provisions of this Agreement, to the minimum extent deemed necessary by counsel or its accountants
to effect the plan of allocations and distributions provided in this Agreement. In addition, if the Manager is required to make
any special allocations of Company Profits, Losses, income, gain or deductions to comply with the requirements of the Regulations,
the Manager shall make such special allocations in whatever manner it determines appropriate so that, after such allocations are
made, each Member's Capital Account balance is, to the extent possible, equal to the Capital Account balance such Member would
have had if the allocations mandated by the Regulations were not required to be made. The Manager shall have the discretion to
adopt and revise rules, conventions and procedures as it believes appropriate for the admission of Members to reflect Members’
Participation Percentages in the Company at the close of the years.

 

4.8 Quarterly Valuation
of Assets. For each of the Company’s Note Investments and other investments, the Manager shall review the investments
at the end of each calendar quarter and determine if a Write-down is required with respect thereto. The Manager shall cause the
Company’s accountants, within thirty (30) days of the end of each calendar quarter, to verify that the Manager’s determination
was made in compliance with generally accepted accounting principles. Any Write-down of an asset resulting from the valuation shall
be effective on the last day of the respective calendar quarter during the term of this Agreement.

 

4.9 Limitation on Distributions. The Company
shall make no distribution to the Members unless the assets of the Company following such distribution will exceed the total liabilities
of the Company, excluding liabilities to Members based on their contributions.

  

ARTICLE 5

[RESERVED]

 

 

 

ARTICLE 6

BOOKS AND RECORDS, REPORTS AND RETURNS

 

6.1 Books and Records.
At the expense of the Company, the Manager shall: (a) cause the Company to keep all books and records required by Delaware
Statutes; and (b) shall cause the Company to keep adequate books and records at its principal place of business, setting forth
a true and accurate account of all business transactions arising out of and in connection with the conduct of the Company. Upon
five (5) day written notice all books and records shall be available for inspection and copying by, and at the sole expense of,
any Member, or any Member’s duly authorized representatives, during the Company’s normal business hours.

 

    	8

    	 

    

 

6.2 Annual Statements.

 

6.2.1: The Manager shall cause
to be prepared at least annually, at the Company’s expense, financial statements prepared in accordance with generally accepted
accounting principles. The financial statements will include: (i) a balance sheet, (ii) statements of income or loss, (iii) Members’
equity and (iv) a statement of cash flows.

 

6.2.2: The Company’s
accountants will itemize the costs of any verification performed by them and may be reimbursed to the Manager by the Company only
to the extent that the reimbursement when added to the costs for administrative services rendered, does not exceed the competitive
rate for the services as determined under Article 9.2.1.

 

6.2.3: Notwithstanding the
120-day period specified in Section 9.2.3(b) below, the Manager shall cause to be prepared and distributed to the Members not later
than seventy-five (75) days after the close of each Fiscal Year of the Company all Company information necessary in the preparation
of the Members’ federal income tax returns.

 

6.3 Filings. The Manager,
at Company expense, shall cause the income tax returns for the Company to be prepared and timely filed with the appropriate authorities.
The Manager, at Company expense, shall also cause to be prepared and timely filed with and/or delivered to appropriate federal
and state regulatory and administrative bodies and/or the Members applicable, all reports required to be filed with or delivered
to those entities or Members under applicable law, including those described in the Company’s undertakings in any securities
filing. The reports shall be prepared using the accounting or reporting basis required by the relevant regulatory bodies. The Company
will provide a copy of the reports to each Member who requests one, without expense to the Member. The Manager, at Company expense,
shall file, with the appropriate agency in the states in which this Company is registered, as required by these states, a copy
of each report referred to under this Article 9.

 

6.4 Suitability Requirements.
The Manager, at Company expense, shall maintain for a period of at least six (6) years, a record of the documentation indicating
that a Member complies with the suitability standards set forth in the Memorandum.

 

6.5 Fiscal Matters.

 

6.5.1: The Company has adopted
the Fiscal Year for tax and accounting purposes. Subject to the provisions of Section 706 of the Code and approval by the Internal
Revenue Service and the applicable state taxing authorities, in the Manager’s sole discretion and without the approval of
the Members, from time to time the Manager may change the Company’s fiscal year to a period to be determined by the Manager.

 

6.5.2: The Company shall continue
to use the cash basis method of accounting for both income tax purposes and financial reporting purposes. We may exclude C corporations
as potential members (except for personal holding companies), if they will jeopardize our cash basis method of accounting.

 

6.5.3: Upon the transfer of
a unit in the Company, the Company may, at the sole discretion of the Manager, elect under Code Section 754, to adjust the basis
of the Company property as allowed by Sections 734(b) and 743(b) thereof.

 

    	9

    	 

    

 

6.5.4: The Manager shall act
as the “Tax Matters Partner” (“TMP”) and shall have all the powers and duties assigned to the TMP under
Sections 6221 through 6234 of the Code and the Treasury Regulations hereunder. The Members agree to perform all acts necessary
under Section 6231 of the Code and Treasury Regulations hereunder to designate the Manager as the TMP.

  

ARTICLE 7

TRANSFER OF COMPANY UNITS

 

7.1 Intentionally left blank

 

7.2 Transfer of Member’s
Unit. To the extent any of the following restrictions are not necessary to the Company, in the discretion of the Manager reasonably
exercised; the Manager may eliminate or modify any restriction. Subject to the immediately preceding sentence, no assignee of the
whole or any portion of a Member’s interest in the Company shall have the right to become a substituted Member in place of
his assignor, unless the following conditions are first met:

 

7.2.1: Members may only transfer whole units unless
the Member is transferring his entire Membership Interest;

 

7.2.2: The assignor shall designate its intention
in a written instrument of assignment, which shall be in a form and substance reasonably satisfactory to the Manager;

 

7.2.3: The transferring Member
shall first obtain written consent of the Manager to the substitution. The Manager shall not unreasonably withhold its consent,
but the Manager will withhold its consent to the extent necessary to prohibit transfers that could cause the Company to be classified
as a publicly traded partnership. The Manager will also withhold consent if it determines that the sale or transfer will otherwise
jeopardize the continued ability of the Company to qualify as a “partnership” for federal income tax purposes or that
the sale or transfer may violate any applicable securities laws (including any investment suitability standards);

 

7.2.4: The assignor and assignee
named therein shall execute and acknowledge any other instruments as the Manager may deem necessary or desirable to effect the
substitution, including, but not limited to, a power of attorney;

 

7.2.5: The assignee shall accept, adopt and approve
in writing all of the terms and provisions of this Agreement as the same may have been amended;

 

7.2.6: The assignee shall pay
or, at the election of the Manager, obligate himself to pay all reasonable expenses connected with the substitution, including,
but not limited to, reasonable attorneys’ fees associated therewith; and

 

    	10

    	 

    

 

7.2.7: The Company has received,
if required by the Manager, a legal opinion satisfactory to the Manager that the transfer will not violate the registration provisions
of the Securities Act of 1933, as amended, or any applicable state securities laws, which opinion shall be furnished at the Member’s
expense.

 

Assignments complying with the above shall be recognized
by the Company on the first day of the calendar month following the month in which the above conditions are met.

 

A Person who acquires an unit
but who is not admitted as a substitute Member by the Manager pursuant to the provisions of this Section 7.2 shall be entitled
only to allocations and distributions with respect to such unit in accordance with this Agreement, but shall have no right to any
information or accounting of the affairs of the Company, shall not be entitled to inspect the books and records of the Company,
and shall not have any of the rights of a member under Delaware Statutes or this Agreement.

  

7.3 Further Restrictions
on Transfers. Notwithstanding any provision to the contrary contained in this Agreement, the following restrictions shall also
apply to any and all proposed sales, assignments and transfer of units, and any proposed sale, assignment or transfer in violation
of same shall be void and of no effect:

 

7.3.1: No Member shall make any transfer or assignment
of all or any part of its unit if said transfer or assignment would, when considered with all other transfers during the same applicable
twelve month period, cause a termination of the Company for federal or Delaware state income tax (if any) purposes;

 

7.3.2: Notice to California
residents: IT IS UNLAWFUL TO CONSUMMATE A SALE OR TRANSFER OF THIS SECURITY, OR ANY UNIT THEREIN OR TO RECEIVE ANY CONSIDERATION
THEREFOR, WITHOUT THE PRIOR WRITTEN CONSENT OF THE COMMISSIONER OF CORPORATIONS OF THE STATE OF CALIFORNIA, EXCEPT AS PERMITTED
IN THE COMMISSIONER’S RULES.

 

7.3.3: Appropriate legends
(including the legend above) under applicable securities laws shall be affixed to any certificates evidencing the units and issued
or transferred to purchasers in other states. For a detailed list, see pages 1-7 of the Company’s Private Placement Memorandum.

 

7.3.4: No Member shall make any transfer or assignment
of all or any of its interest if the Manager determines that the transfer or assignment would result in the Company being classified
as a “publicly traded partnership” with the meaning of Section 7704(b) of the Code or Treasury Regulations. To prevent
that:

 

(a) The Manager will not permit trading of units
on an established securities market within the meaning of Section 7704(b);

 

(b) The Manager will prohibit any transfer of unit
which would not comply with any applicable safe harbors; and

 

    	11

    	 

    

 

(c) The Manager will not permit any withdrawal of any
unit.

 

7.4 Distributions and Allocations
with Respect to Transferred Units. If any unit is assigned during any accounting period in compliance with the provisions of
this Section 7, all Profits, Losses, each item thereof, and all other items attributable to the assigned unit for such period shall
be divided and allocated between the assignee and the assignor by taking into account their varying rights during the period in
accordance with Code Section 706(d), using any convention permitted by law and selected by the Manager. All distributions on or
before the date of such assignment shall be made to the assignor and all distributions thereafter shall be made to the assignee.

  

ARTICLE 8 

WITHDRAWAL OF A MEMBER;

PLANNED TERMINATION OF THE FUND

 

8.1 Withdrawal of Members.
Absent extreme circumstances, members may not withdraw from the Fund. After the Fund Termination Date the assets of the Fund
will be sold and the Fund will be wound up in orderly fashion as set forth in Article 12 below. The Manager may, at its discretion,
allow withdrawal of a member if conditions dictate such.

 

8.2 Planned Existence and Termination of Fund.
The Fund is intended to have a limited existence as follows.

 

8.2.1: The Fund will terminate
its existence after all loans have been liquidated and the proceeds thereof have been distributed to investors/members. The Investment
Manager intends to begin liquidating the loans held in the Fund in accordance with the operating agreements of the contributing
members.

 

 ARTICLE 9

DISSOLUTION OF THE COMPANY

 

9.1 Events Causing Dissolution. The Company
shall dissolve and commence winding up and liquidating upon the first to occur of any of the following (“Liquidating Events”):

 

9.1.1: The Fund Termination
Date as established by the participating members.

 

9.1.2: The sale of or other disposition of all or
substantially all of the Company Property (without receipt of an exchange property);

 

9.1.3: Affirmative vote or consent of a Super
Majority to dissolve, wind up, and liquidate the Company;

 

9.1.4: The happening of any other event that makes
it unlawful or impossible to carry on the business of the Company;

 

    	12

    	 

    

 

9.1.5: The resignation or removal of the sole
Manager without appointing a replacement therefore in accordance with Sections 3.5 or 3.6 above;

 

9.1.6: The entry of a judgment of dissolution under
Section 1335 of the Act.

 

The Members hereby agree that, notwithstanding any
provision of the Act, the Company shall not dissolve prior to the occurrence of a Liquidating Event.

 

As soon as possible following
the occurrence of a Liquidating Event, Manager shall comply with the provisions of Section 1336 of the Act, giving notice of the
dissolution of the Company and the commencement of the winding up of its affairs.

 

9.2 Winding Up. Upon
the occurrence of a Liquidating Event, the Company shall immediately be dissolved, but shall continue until its affairs have been
wound up according to the provisions of the Delaware Statutes. Upon dissolution of the Company, the Manager will wind up the Company’s
affairs as follows:

 

9.2.1: No new Note Investments shall be invested in
or purchased;

 

9.2.2: The Manager(s) shall liquidate the assets
of the Company by sale to third parties;

 

9.2.3:
All sums of cash held by the Company as of the date of dissolution, together with all sums of cash received by the Company during
the winding up process from any source whatsoever, shall be distributed as follows:

 

(a) first, to the payment
and discharge of all of the Company’s debts and liabilities, if any, to creditors other than Members;

 

(b) second, to the payment and discharge of all
of the Company’s debts and liabilities, if any, to Members; then

 

(c) the balance, if any,
to the Members in accordance with their Participation Percentage as of the Fund Termination Date.

 

9.3 Compliance with Timing
Requirements of Regulations. If the Company is “liquidated” within the meaning of Treasury Regulation Section 1.704-1(b)(2)(ii)(g),
distributions shall be made under this Article 12 (if such liquidation constitutes a dissolution of the Company) or Article 7 hereof
(if it does not) to the Members who have positive Capital Accounts in compliance with Treasury Regulation Section 1.704-1(b)(2)(ii)(b)(2).

 

9.4 Distributions Held
in Trust Reserves. In the discretion of the Manager, a pro rata share of the distributions that would otherwise be made to
the Members pursuant to this Section 12 may be:

 

    	13

    	 

    

 

9.4.1: Distributed to a trust
established for the benefit of the Members for the purposes of liquidating Company assets, collecting amounts owed to the Company,
and paying any contingent or unforeseen liabilities or obligations of the Company or of the Members arising out of or in connection
with the Company. The assets of any such trust shall be distributed to the Members from time to time, in the reasonable discretion
of the Manager in the same proportions as the amount distributed to such trust by the Company would otherwise have been distributed
to the Members pursuant to this Agreement; or

 

9.4.2: Withheld to provide a reasonable reserve
for Company liabilities (contingent or otherwise) and to reflect the unrealized portion of any installment obligations owed to
the company, provided that such withheld amounts shall be distributed to the Members as soon as practicable.

 

9.5 Deemed Distribution and
Re-contribution. Notwithstanding any other provision of this Section 12, in the event the Company is liquidated within the
meaning of Regulations Section 1.704-1(b)(2)(ii)(i), but no Liquidating Event has occurred, the Company property shall not be liquidated,
the Company's liabilities shall not be paid or discharged, and the Company's affairs shall not be wound up. Instead, the Company
shall be deemed to have distributed the Company Property in kind to the Members, who shall be deemed to have assumed and taken
subject to all Company liabilities, all in accordance with their respective Capital Accounts. Immediately thereafter, the Members
shall be deemed to have re-contributed the Company property in kind to the Company, which shall be deemed to have assumed and taken
subject to all such liabilities.

 

9.6 Certificate of Dissolution.
At such time as all of the debts, liabilities and obligations of the Company have been paid, discharged or otherwise provided
for, a certificate of dissolution shall be prepared, signed, and filed by the Manager as provided in Section 1340 of the Act.

 

9.7 No Recourse to Manager.
Upon dissolution and winding up under the Act, each Member shall look solely to the assets of the Company for the return of his
Capital Account, and if a Member’s Participation Percentage of the Company assets remaining after the payment or discharge
of the debts and liabilities of the Company are insufficient to return the amounts of the Capital Account of Members, Members shall
have no recourse against the Manager or any other Member. The winding-up of the affairs of the Company and the distribution of
its assets shall be conducted exclusively by the Manager. The Manager is hereby authorized to do any and all acts and things authorized
by law for these purposes. If the Manager is removed or resigns and no replacement Manager is appointed by the Super Majority,
the winding-up of the affairs of the Company and the distribution of its assets shall be conducted by the person or entity selected
by a vote of a Super Majority, which person or entity is hereby authorized to do any and all acts and things authorized by law
for such purposes.

 

ARTICLE 10

[RESERVED]

 

 

ARTICLE 11

[RESERVED]

 

 

 

 

    	14

    	 

    

 

ARTICLE
12

MISCELLANEOUS

  

12.1 Covenant to Sign Documents.
Each Member covenants, for itself and its successors and assigns, to execute, with acknowledgment or verification, if required,
any and all certificates, documents and other writings which may be necessary or expedient to form the Company and to achieve its
purposes, including, without limitation, any amendments to the Articles of Organization and any filings, records or publications
necessary or appropriate under the laws of any jurisdiction in which the Company shall conduct its business.

 

12.2 Notices. Except
as otherwise expressly provided for in this Agreement, all notices which any Member may desire or may be required to give any other
Members shall be in writing and shall be deemed duly given when delivered personally or when deposited in the United States mail,
first-class postage pre-paid. Notices to Members shall be addressed to the Members at the last address shown on the Company records.
Notices to the Manager or to the Company shall be delivered to the Company’s principal place of business, as set forth in
Section 2.5 above or as hereafter changed as provided herein.

 

12.3 Right to Engage in
Competing Business. Nothing contained in this Agreement shall preclude any Member from purchasing or lending money upon the
security of any other property or rights therein, or in any manner investing in, participating in, developing or managing any other
venture of any kind, without notice to the other Members, without participation by the other Members, and without liability to
them or any of them. Each Member waives any right he may have against the Manager for using for its own benefit information received
as a consequence of the Manager’s management of the affairs of the Company. This Section 15.3 shall be subject in its entirety
to the fiduciary duty of the Manager set forth in Section 3.4.

 

12.4 Amendment. This
Agreement is subject to amendment by the affirmative vote of a Majority in accordance with Section 6.2; provided, however, that
no amendment shall be permitted if the effect of such amendment would be to increase the duties or liabilities of any Member or
materially adversely affect any Member’s interest in Profits, Losses, Company assets, distributions, management rights or
voting rights, except as agreed by that Member. In addition, and notwithstanding anything to the contrary contained in this Agreement,
the Manager shall have the right to amend this Agreement, without the vote or consent of any of the Members, if, in the reasonable
judgment of the Manager, such amendment does not adversely affect the rights of the Members, including, without limitation, an
amendment:

 

12.4.1:
To grant to Members (and not solely the Manager in its capacity as an Initial Member) additional rights, remedies, powers or authority
that may lawfully be granted to or conferred upon them;

 

12.4.2:
To cure any ambiguity, to correct or supplement any provision which may be inconsistent with any other provision, or to make any
other provisions for matters or questions arising under this Agreement which will not be inconsistent with the provisions of this
Agreement;

 

12.4.3: To conform this Agreement
to applicable laws and regulations, including, without limitation, federal and state securities and tax laws and regulations;

12.4.4: In the form of a revision
to or updating of Schedule A in accordance with Section 5.1 hereof; and

 

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12.4.5:
To elect for the Company to be governed by any successor Delaware statute governing limited liability companies. The Manager shall
notify the Members within a reasonable time of the adoption of any amendment.

 

12.5 Entire Agreement. This
Agreement and the Memorandum constitutes the entire agreement between the parties and supersedes any and all prior agreements and
representations, either oral or in writing, between the parties hereto regarding the subject matter contained herein.

 

12.6 Waiver. No waiver
by any party hereto of any breach of, or default under, any provision of this Agreement by any party shall be construed or deemed
a waiver of any breach of or default under any other provision of this Agreement, and shall not preclude any party from exercising
or asserting any rights under this Agreement for any future breach or default of the same provision of this Agreement.

 

12.7 Severability.
If any term, provision, covenant or condition of this Agreement is held by a court of competent jurisdiction to be invalid, void
or unenforceable, the remainder of the provisions of this Agreement shall remain in full force and effect and shall in no way be
affected, impaired or invalidated.

 

12.8 Application of Delaware
Law. This Agreement and the application or interpretation thereof shall be governed, construed, and enforced exclusively by
its terms and by the law of the State of Delaware.

 

12.9 Captions. Section
titles or captions contained in this Agreement are inserted only as a matter of convenience and for reference and in no way define,
limit, extend or describe the scope of this Agreement.

 

12.10 Number and Gender.
Whenever the singular form is used in this Agreement it includes the plural when required by the context, and the masculine
gender shall include the feminine and neutral genders.

 

12.11 Counterparts. This Agreement may be
executed in counterparts, any or all of which may be signed by Manager on behalf of the Members as their attorney-in-fact.

 

12.12 Waiver of Action for
Partition. Each of the parties hereto irrevocably waives, during the term of the Company, any right that it may have to maintain
any action for partition for any property of the Company.

 

12.13 Binding on Assignees.
Each and all of the covenants, terms, provisions and agreements herein contained shall be binding upon and inure to the benefit
of the successors and assigns of the respective parties hereto, subject to the provisions of Section 10.2, which control the assignment
or other transfer of units.

 

 

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IN WITNESS WHEREOF, the undersigned have hereunto
set their hands as of the date first set forth above.

 

 

	COMPANY:	MEMBER:
	 	 
	2011-12 Opportunity Fund 6-1, LLC	Opportunity Fund VI, LLC
	By:  Bayou City Exploration, Inc., Manager	 
	 	By: _______________________________
	 	 
	By: ____________________________	 
		MEMBER:
	 	 
	 	BYCX I, LLC
	 	 
	 	By: _______________________________
	 	 
	 	 
	 	MEMBER:
	 	 
	 	Opportunity Fund VII, LLC
	 	 
	 	By: ______________________________

 

 

 

    	17

    	 

    

 

Schedule
1.1

 

Definitions

 

Act means the Delaware Limited Liability
Company Law

 

Affiliate means: (a) any person directly
or indirectly controlling, controlled by or under common control with the Person; (b) any other Person owning or controlling ten
percent (10%) or more of the outstanding voting securities of the Person; (c) any officer, director or Member of the Person or
(d) if the other Person is an officer, director or Manager, any company for which the Person acts in any similar capacity.

 

Agreement means this Operating Agreement, as amended
from time to time.

 

Acquisition Expenses
means all expenses, including, but not limited to, legal fees and expenses, travel and communication expenses, costs of appraisals,
broker price opinions, tax checks, accounting fees and expenses, title insurance funded by the Company, commissions, and other
miscellaneous expenses, related to the evaluation, selection and acquisition of Note Investments, whether or not a Note Investment
is acquired.

 

Amortization Ratio
means the ratio applied to voluntary principal payments and pre- payments received by the Company for purposes of allocating
amortization of the Note Investment Cost. It shall be calculated as the ratio of the Note Investment Cost to the total unpaid principal
balance of the Mortgage Loan or Land Contract outstanding at the time of purchase. By way of example, if the Amortization Ratio
is 70%, then 70% of an applicable principal payment amortizes the Note Investment Cost and the remaining 30% is treated as an Investment
Gain. Involuntary principal pre-payments received shall be applied first to fees and expenses associated with the individual Mortgage
Loan or Land Contract, then to amortization of the Note Investment Cost to Members, and then, remaining proceeds, if any, shall
be shared as Investment Gains.

 

Basis means the
total cost to the Company for the acquisition of the Note Investment, including the purchase price for the Note Investment, the
Acquisition Expenses, and the Transaction Fee.

 

Capital Account means, for any Member, the Capital
Account maintained for the Member in accordance with the following provisions:

 

(a) The
Manager shall credit to each Member’s Capital Account: (i) on the Closing Date, the Member’s Capital Contribution,
(ii) the Member’s distributive share of Profits, (iii) any items in the nature of income or gain (from unexpected adjustments,
allocations or distributions) that are specially allocated to a Member, and (iv) the amount of any Company liabilities that are
assumed by the Member or that are secured by any Company property distributed to the Member.

 

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(b) The Manager shall debit from
each Member’s Capital Account: (i) the amount of cash and the fair market value of any Company property distributed to the
Member under any provision of this Agreement, (ii) the Member’s distributive share of Losses, (iii) any items in the nature
of expenses or losses that are specially allocated to a Member and (iv) the amount of any liabilities of the Member that are assumed
by the Company or that are secured by any property contributed by the Member to the Company.

 

If the Gross Asset Value of
a Company asset is adjusted as a result of a Write-down, the Manager shall concurrently adjust the Capital Accounts of all Members
in order to reflect the aggregate net adjustment that would have occurred if the Company had recognized Losses equal to the Write-down
Amount and the Losses were allocated under Article 7.

 

If any unit in the Company
is transferred in accordance with Section 10.2 of this Agreement, the transferee shall succeed to the Capital Account of the transferor
to the extent it relates to the transferred unit.

 

The foregoing provisions and
the other provisions of this Agreement relating to the maintenance of Capital Accounts are intended to comply with Treasury Regulation
Section 1.704-1(b), and shall be interpreted and applied in a manner consistent with the Regulation. If the Manager determines
that it is prudent to modify the manner in which the Capital Accounts, or any debits or credits thereto, are computed in order
to comply with the then existing Treasury Regulation, the Manager may make the modification, provided that it is not likely to
have a material effect on the amounts distributable to any Member under Articles 7 and 12 of this Agreement upon the dissolution
of the Company. The Manager shall make any appropriate modification if unanticipated events might otherwise cause this Agreement
not to comply with Treasury Regulation Section 1.704-1(b) as provided for in Sections 7.7 and 15.4.

 

Capital Contribution means the total investment
and contribution to the capital of the Company made by a Member.

 

Cash for Distribution
means that portion of the Cash Flow available for pro-rata distribution to Members consisting of, to the extent received and available
for distribution, (a) un-amortized Note Investment Cost in accordance with the Amortization Ratio, (b) 90% of the actual interest
income received and (c) 90% of the Investment Gains received, subject to recovery of unrecovered losses of Note Investment Cost.
Only actual interest income received (versus scheduled) will be distributed to Members and the Loan Servicer.

 

Cash Flow means for any calendar quarter period
the cash funds received by the Company for that calendar quarter period.

 

Member means a Person who owns one or more units
of the member company.

 

Initial Member means BYCX Opportunity
Fund I, LLC, Opportunity Fund VI, LLC and Opportunity Fund VII, LLC

 

    	19

    	 

    

 

Code means the Internal Revenue Code
of 1986, as amended from time to time and corresponding provisions of subsequent revenue laws.

 

Company means 2011-12 Opportunity Fund 6-1, LLC,
the Delaware limited liability company to which this Agreement pertains.

 

Expenses means
all expenses in connection with the operation of the Company’s business, including, but not limited to, all Acquisition Expenses,
but specifically excluding Manager’s office overhead.

 

Fiscal Year means, subject to the provisions of
Section 706 of the Code and Section

9.6.1, (i) the period commencing on the date of formation of
the Company and ending on December 31, 2012 (ii) any subsequent twelve (12) month period beginning on January 1 and ending on December
31 and (iii) the period commencing January 1 and ending on the date on which all Company assets are distributed to the Members
under Article 12.

 

Gross Asset Value  means, for any Company asset,
the following:

 

(a) The initial Gross Asset Value of any Company asset at the
time that it is contributed by a Member to the capital of the Company shall be an amount equal to the fair market value of the
Company asset (without regard to the provisions of Code Section 7701(g)), as determined by the contributing Member and the Manager;

 

(b) The Gross Asset Values of all Company
assets shall be adjusted, as determined by the distributed Member and the Manager, to equal their respective fair market values
upon the distribution to a Member by the Company of more than a de minimis amount of Company assets (other than money), unless
all Members simultaneously receive distributions of undivided units in the distributed Company assets in proportion to their respective
Capital Accounts;

 

(c) The Gross Asset Values of
all Company assets shall be adjusted to equal their respective fair market values (as determined by the Manager, in its reasonable
discretion) upon the termination of the Company for Federal income tax purposes under Code Section 708(b)(1)(B); and

 

(d) The Gross Asset Value of a Company asset shall be adjusted
in the case of a Write-down of the Company asset in accordance with the provisions of this Agreement.

 

HSLLC as used in this agreement means Home Servicing,
LLC.

 

Investment Gains shall
be equal to the amount by which a principal prepayment, after considering the Amortization Ratio exceeds the Company’s un-amortized
Note Investment Cost on the Mortgage Loans and Land Contracts (after payment of Fund expenses and fees, except office expenses,
which will be paid by the Manager).

 

    	20

    	 

    

 

Investment Manager means the Fund’s Investment
Manager is Bayou City Exploration, Inc., a Nevada corporation (which we refer to as “Manager” or the Investment Manager”),
organized on November 30, 1994. Bayou City’s executive offices are at 625 Adams Street, Suite 710, Bowling Green, Kentucky
42101.

 

Units means, as the context
requires, ownership of equity in the Company that are (a) issued to Members upon their admission to the Company or (b)transferred
to those who become substituted Members under Section 12.2 hereof.

  

Land Contracts
as used in this Agreement are contracts between a buyer and the Company of a property, wherein the Company holds the title or deed
to the property until all agreed upon payments have been made in full.

 

Delaware Statutes means the Delaware laws with
respect to limited liability companies including the Act, as amended from time to time, unless indicated to the contrary by the
context.

 

Manager means Bayou City Exploration, Inc., a
Nevada Corporation, in that capacity or any Person replacing Bayou City Exploration, Inc. under this Agreement.

 

Member means a Member or the Initial Member(s).

 

Membership Unit(s)
means the entire ownership interest of a Member Company and its members in the Company at any particular time, including the right
of the Member Company and its members to any and all benefits to which a Member may be entitled as provided in this Agreement,
together with the obligations of the Member Company and its members to comply with all of the terms and provisions of this Agreement.

 

Mortgage means the lien(s) created on the Real
Property of borrowers securing their respective obligations to the Company to repay Note Investments, whether in the form of a
deed of trust, mortgage or otherwise.

 

Mortgage Notes means investments of the Member
Companies held by the Company that are notes, debentures, bonds and other evidences of indebtedness or obligations that are negotiable
or non-negotiable and secured or collateralized by Mortgages.

 

Note Investment(s) means the Mortgage Notes and
Land Contracts or an interest in a Mortgage Note or Land Contract that are held by the Company.

 

Note Investment Cost means the purchase price
paid by the Member for the Note Investment, not including Acquisition Costs and the Transaction Fee.

 

Offering means the offer and sale of units of
the Member Companies made under their Memorandums.

 

    	21

    	 

    

 

Participation Percentage means the percentage
that the amount of a Member Company’s Capital Account apportioned among the members as compared to the aggregate amount of
all such Capital Accounts.

 

Person means any natural person, partnership,
corporation, unincorporated association or other legal entity.

 

Profits and Losses mean, for each Fiscal Year
or any other period, an amount equal to the Company’s taxable income or loss for the Fiscal Year or other given period, determined
in accordance with Code Section 703(a) (for this purpose, all items of income, gain, loss, or deduction required to be stated separately
under Code Section 703(a) (1) shall be included in taxable income or loss), with the following adjustments (without duplication):

 

(a) Any income of the Company
that is exempt from federal income tax and not otherwise taken into account in computing Profits or Losses under this section shall
be added to the taxable income or loss;

 

(b) Any expenditures of the Company
described in Section 705(a)(2)(B) of the Code or treated as Section 705(a)(2)(B) of the Code expenditures under Treasury Regulation
Section 1.704-1(b)(2)(iv)(i), and not otherwise taken into account in computing Profits or Losses under this section, shall be
subtracted from the taxable income or loss. If any Company asset has a Gross Asset Value which differs from its adjusted cost basis,
gain or loss resulting from the disposition of the Company asset shall be computed using the Gross Asset Value (rather than adjusted
cost basis) of the Company asset. Notwithstanding any other provision of this Section, any items in the nature of income, gain,
expenses or losses, which are specially allocated under Section 7.5.1, 7.5.2 and 7.6, shall not be taken into account in computing
Profits or Losses.

 

Real Property means and includes: (a) land and
any buildings, structures, and improvements, and (b) all fixtures, whether in the form of equipment or other personal property,
that is located on or used as part of land.

 

Servicing Fee
means a monthly Servicing Fee to HSLLC in an amount equal to (a) the greater of $30 per month per Mortgage Note and Land Contract
or one-twelfth of 1% of the sum of the unpaid principal balance for all performing Note Investments during the relevant calendar
month plus all cash on hand, plus (b) for each non-performing Note Investment, if any, $175.00 per month.

 

Super Majority
means any group of Members who together hold over 80% of the total outstanding units of the Company as of a particular date (or
if no date is specified, the first day of the then current calendar month).

 

Treasury Regulations means, except where the context
indicates otherwise, the permanent, temporary, proposed, or proposed and temporary regulations of the U.S. Department of the Treasury
under the Code, as the regulations may be lawfully changed from time to time.

 

    	22

    	 

    

 

Unit(s) means a Membership Unit.

 

Write-down means
a determination by the Manager for a particular Note Investment or other Company investment (which determination has been verified
by the Company’s accountants as being in conformity with generally accepted accounting principles) that the fair market value
of the investment at the time the determination is made is less than the amount actually paid or allocated to the purchase of the
investment, which determination shall be made by the Company and its accountants within thirty (30) days of the end of each calendar
quarter and any Write-down shall be effective on the last day of the relevant calendar quarter during the term of this Agreement.

 

Write-down Amount
means, for any Note Investment or other Company investment, the amount by which, at the time that a Write-down is determined for
the Note Investment, the amount actually paid or allocated to the purchase of the investment exceeds its fair market value.

 

 

 

 

 

 

 

 

 

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