Document:

Exhibit 10.13

 

PROMISSORY NOTE

 

 

	Borrower:	Red Fox MHP LLC	Lender:	Charlotte Metro Federal Credit Union 

718 Central Avenue
	 	136 Main Street	 	Charlotte, NC 28204
	 	Pineville, NC 28134	 	 

 

 

 

	 	Principal Amount: $2,250,000.00	Date
of Note: July 29, 2022

 

PROMISE TO PAY.
Red Fox MHP LLC (“Borrower”) promises to pay to Charlotte Metro Federal Credit Union (“Lender”), or order, in lawful
money of the United States of America, the principal amount of Two Million Two Hundred Fifty Thousand &
00/100 Dollars ($2,250,000.00), together with interest on the unpaid principal balance from July 29, 2022, until paid in
full.

 

PAYMENT. Borrower will pay
this loan in accordance with the following payment schedule, which calculates interest on the unpaid principal balances as
described in the “INTEREST CALCULATION METHOD” paragraph using the interest rates described in this
paragraph: 24 monthly consecutive interest payments, beginning September 1, 2022, with interest calculated on the unpaid principal
balances using an interest rate of 5.250% per annum; 95 monthly consecutive principal and interest payments of $13,483.07 each,
beginning September 1, 2024, with interest calculated on the unpaid principal balances using an interest rate of 5.250% per annum;
and one principal and interest payment of $1,831,129.31 on August 1, 2032, with interest calculated on the unpaid principal balances
using an interest rate of 5.250% per annum. This estimated final payment is based on the assumption that all payments will be made
exactly as scheduled; the actual final payment will be for all principal and accrued interest not yet paid, together with any other
unpaid amounts under this Note. Unless otherwise agreed or required by applicable law, payments will be applied first to any late
charges; then to any accrued unpaid interest; then to principal; and then to any unpaid collection costs. Borrower will pay Lender
at Lender’s address shown above or at such other place as Lender may designate in writing.

 

INTEREST
RATE. The interest rate of 5.25% is an initial rate that shall remain fixed for five years from the date of the loan. On July
29, 2027, the interest rate may be adjusted one time for an additional five years. The adjusted rate will be based on the borrower’s financial
condition, market conditions, and interest rates at that time. Notwithstanding the payment terms set forth herein above, Borrower is aware
and fully understands that the monthly payments and the last estimated payment may change due to the potential interest rate change that
may occur on July 29, 2027 as set forth herein.

 

INTEREST CALCULATION METHOD. Interest
on this Note is computed on a 365/365 simple interest basis; that is, by applying the ratio of the interest rate over the number of days
in a year (365 for all years, including leap years), multiplied by the outstanding principal balance, multiplied by the actual
number of days the principal balance is outstanding. All interest payable under this Note is computed using this method.

 

PREPAYMENT. Borrower agrees
that all loan fees and other prepaid finance charges are earned fully as of the date of the loan and will not be subject to refund upon
early payment (whether voluntary or as a result of default), except as otherwise required by law. Except for the foregoing, Borrower may
pay without penalty all or a portion of the amount owed earlier than it is due. Early payments will not, unless agreed to by Lender in
writing, relieve Borrower of Borrower’s obligation to continue to make payments under the payment schedule. Rather, early payments will
reduce the principal balance due and may result in Borrower’s making fewer payments. Borrower agrees not to send Lender payments marked
“paid in full”, “without recourse”, or similar language. If Borrower sends such a payment, Lender may accept it without
losing any of Lender’s rights under this Note, and Borrower will remain obligated to pay any further amount owed to Lender. All written
communications concerning disputed amounts, including any check or other payment instrument that indicates that the payment constitutes
“payment in full” of the amount owed or that is tendered with other conditions or limitations or as full satisfaction
of a disputed amount must be mailed or delivered to: Charlotte Metro Federal Credit Union, 718 Central Avenue Charlotte, NC 28269.

 

LATE CHARGE.
If a payment is 10 days or more late, Borrower will be charged 8.000% of the regularly scheduled payment or $25.00, whichever is greater.

 

INTEREST
AFTER DEFAULT. Upon default, at Lender’s option, and if permitted by applicable law, Lender may add any unpaid accrued interest
to principal and such sum will bear interest therefrom until paid at the rate provided in this Note (including any increased rate). Upon
default, the interest rate on this Note shall be increased by adding an additional 2.000 percentage point margin (“Default Rate Margin”).
The Default Rate Margin shall also apply to each succeeding interest rate change that would have applied had there been no default. After
maturity, or after this Note would have matured had there been no default, the Default Rate Margin will continue to apply to the final
interest rate described in this Note. If judgment is entered in connection with this Note, interest will continue to accrue after the
date of judgment at the rate in effect at the time judgment is entered. However, in no event will the interest rate exceed the maximum
interest rate limitations under applicable law.

 

     

     

    

 

	 	PROMISSORY NOTE	 
	Loan No: 865137-01	(Continued)	Page 2

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

Insecurity. Lender in good
faith believes itself insecure.

 

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

 

ATTORNEYS’
FEES; EXPENSES. Lender may hire or pay someone else to help collect this Note if Borrower does not pay. Borrower will pay Lender that
amount. This includes, subject to any limits under applicable law, Lender’s reasonable attorneys’ fees and Lender’s legal expenses, whether
or not there is a lawsuit, including reasonable attorneys’ fees, expenses for bankruptcy proceedings (including efforts to modify or vacate
any automatic stay or injunction), and appeals. If not prohibited by applicable law, Borrower also will pay any court costs, in addition
to all other sums provided by law.

 

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

 

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

 

DISHONORED
ITEM FEE. Borrower will pay a fee to Lender of $33.00 if Borrower makes a payment on Borrower’s loan and the check or preauthorized
charge with which Borrower pays is later dishonored.

 

STATUTORY LIEN. Borrower agrees
that all loan advances under this Note are secured by all shares and deposits in all joint and individual accounts Borrower has with Lender
now and in the future. Borrower authorizes Lender, to the extent permitted by applicable law, to apply the balance in these accounts to
pay any amounts due under this Note when Borrower is in default under this Note. Shares and deposits in an Individual Retirement Account
and any other account that would lose special tax treatment under state or federal law if given as security are not subject to the security
interest Borrower has given in Borrower’s shares and deposits.

 

     

     

    

 

	 	PROMISSORY NOTE	 
	Loan No: 865137-01
	(Continued)	Page 3

 

COLLATERAL. Borrower acknowledges
this Note is secured by the following collateral described in the security instruments listed herein:

 

		(A)	a Deed of Trust dated July 29, 2022, to a trustee in favor of Lender on real property located in Haywood
County, State of North Carolina.

 

		(B)	an Assignment of All Rents to Lender on real property located in Haywood County, State of North Carolina.

 

ARBITRATION.
Borrower and Lender agree that all disputes, claims and controversies between them whether individual,
joint, or class in nature, arising from this Note or otherwise, including without limitation
contract and tort disputes, shall be arbitrated pursuant to the Rules of the American Arbitration Association in effect at the time the
claim is filed, upon request of either party. No act to take or dispose of any collateral securing this Note shall constitute a waiver
of this arbitration agreement or be prohibited by this arbitration agreement. This includes, without limitation, obtaining injunctive
relief or a temporary restraining order; invoking a power of sale under any deed of trust or mortgage; obtaining a writ of attachment
or imposition of a receiver; or exercising any rights relating to personal property, including taking or disposing of such property with
or without judicial process pursuant to Article 9 of the Uniform Commercial Code. Any disputes, claims, or controversies concerning the
lawfulness or reasonableness of any act, or exercise of any right, concerning any collateral securing this Note, including any claim to
rescind, reform, or otherwise modify any agreement relating to the collateral securing this Note, shall also be arbitrated, provided however
that no arbitrator shall have the right or the power to enjoin or restrain any act of any party. Judgment upon any award rendered by any
arbitrator may be entered in any court having jurisdiction. Nothing in this Note shall preclude any party from seeking equitable relief
from a court of competent jurisdiction. The statute of limitations, estoppel, waiver, laches, and similar doctrines which would otherwise
be applicable in an action brought by a party shall be applicable in any arbitration proceeding, and the commencement of an arbitration
proceeding shall be deemed the commencement of an action for these purposes. The Federal Arbitration Act shall apply to the construction,
interpretation, and enforcement of this arbitration provision.

 

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

 

NOTIFY US OF INACCURATE
INFORMATION WE REPORT TO CONSUMER REPORTING AGENCIES. Borrower may notify Lender if Lender reports any inaccurate information
about Borrower’s account(s) to a consumer reporting agency. Borrower’s written notice describing the specific inaccuracy(ies) should
be sent to Lender at the following address: Charlotte Metro Federal Credit Union, 718 Central Avenue, Charlotte, NC 28204.

 

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

 

     

     

    

 

	 	PROMISSORY NOTE	 
	Loan No: 865137-01
	(Continued)	Page 4

 

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

 

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

 

RED FOX MHP LLC

 

MANUFACTURED HOUSING PROPERTIES, INC., Member of Red Fox
MHP LLC

 

	By:	/s/ Jay Wardlaw III	 
	 	Jay Wardlaw, Ill, President of Manufactured Housing Properties, Inc.	 

 

LENDER:

 

CHARLOTTE METRO FEDERAL CREDIT UNION

 

	X	/s/ Deane True	 
	 	Authorized Signer	 

 

LaserPro, Ver. 22.1.0.044 Copr. Finastra USA Corporation 1997, 2022. All Rights Reserved. -
NC L:ICFI\LPL\020.FC TR-4433 PR-58Exhibit
10.14

 

DEED
OF TRUST

 

RECORDATION
REQUESTED BY:

Charlotte
Metro Federal Credit Union, 718 Central Avenue, Charlotte, NC 28204

 

WHEN
RECORDED MAIL TO:

Charlotte
Metro Federal Credit Union, 718 Central Avenue, Charlotte, NC 28204

 

SEND
TAX NOTICES TO:

Charlotte
Metro Federal Credit Union, 718 Central Avenue, Charlotte, NC 28204

 

 

xThis
Deed of Trust prepared by: Mackenzie Baker @ Charlotte Metro Credit Union

 

 

MAXIMUM
LIEN. The maximum principal amount secured by this Deed of Trust shall not exceed at any one time $2,250,000.00.

 

THIS
DEED OF TRUST is dated July 29, 2022, among Red Fox MHP LLC, whose address is 136 Main Street, Pineville, NC 28134 (“Grantor”);
Charlotte Metro Federal Credit Union, whose address is 718 Central Avenue, Charlotte, NC 28204 (referred to below sometimes as “Lender”
and sometimes as “Beneficiary”); and Charles R. Buckley, Ill, whose address is 4421 Sharon Road, Suite 200, Charlotte, NC
28211 (referred to below as “Trustee”).

 

CONVEYANCE
AND GRANT. NOW, THEREFORE, as security for the Indebtedness, advancements and other sums expended by the Beneficiary pursuant
to this Deed of Trust and costs of collection (including attorneys’ fees as provided in the Note) and other valuable consideration,
the receipt of which is hereby acknowledged, Grantor has bargained, sold, given, granted and conveyed and does by these presents bargain,
sell, give, grant and convey to Trustee, and Trustee’s heirs or successors and assigns, for the benefit of Lender as Beneficiary,
all of Grantor’s right, title, and interest in and to the following described real property, together with all existing or subsequently
erected or affixed buildings, improvements and fixtures; all easements, rights of way, and appurtenances; all water, water rights and
ditch rights (including stock in utilities with ditch or irrigation rights); and all other rights, royalties, and profits relating to
the real property, including without limitation all minerals, oil, gas, geothermal and similar matters, (the “Real Property”)
located in Haywood County, State of North Carolina:

 

See
Exhibit A - Legal Description, which is attached to this Deed of Trust and made a part of this Deed of Trust as if fully set forth herein.

 

The
Real Property or its address is commonly known as 26 Shelton Road, Clyde, NC 28721.

 

To
have and to hold said Real Property with all privileges and appurtenances thereunto belonging, to the Trustee, his heirs, successors
and assigns forever, upon the trusts, terms and conditions and for the uses hereinafter set forth.

 

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

 

THIS
DEED OF TRUST, INCLUDING THE ASSIGNMENT OF RENTS AND THE SECURITY INTEREST IN THE RENTS AND PERSONAL PROPERTY, 15 GIVEN TO SECURE (A)
PAYMENT OF THE INDEBTEDNESS AND (B) PERFORMANCE OF ANY AND ALL OBLIGATIONS UNDER THE NOTE, THE RELATED DOCUMENTS, AND THIS DEED OF TRUST.
THIS DEED OF TRUST 15 GIVEN AND ACCEPTED ON THE FOLLOWING TERMS:

 

 

     

     

    

 

		DEED OF TRUST	 
	Loan No: 865137-01	(Continued)	Page 2

 

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

 

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

 

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

 

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

 

Compliance
With Environmental Laws. Grantor represents and warrants to Lender that: (1) During the period of Grantor’s ownership of the
Property, there has been no use, generation, manufacture, storage, treatment, disposal, release or threatened release of any Hazardous
Substance by any person on, under, about or from the Property; (2) Grantor has no knowledge of, or reason to believe that there has been,
except as previously disclosed to and acknowledged by Lender in writing, (a) any breach or violation of any Environmental Laws, (b) any
use, generation, manufacture, storage, treatment, disposal, release or threatened release of any Hazardous Substance on, under, about
or from the Property by any prior owners or occupants of the Property, or (c) any actual or threatened litigation or claims of any kind
by any person relating to such matters; and (3) Except as previously disclosed to and acknowledged by Lender in writing, (a) neither
Grantor nor any tenant, contractor, agent or other authorized user of the Property shall use, generate, manufacture, store, treat, dispose
of or release any Hazardous Substance on, under, about or from the Property; and (b) any such activity shall be conducted in compliance
with all applicable federal, state, and local laws, regulations and ordinances, including without limitation all Environmental Laws.
Grantor authorizes Lender and its agents to enter upon the Property to make such inspections and tests, at Grantor’s expense, as
Lender may deem appropriate to determine compliance of the Property with this section of the Deed of Trust. Any inspections or tests
made by Lender shall be for Lender’s purposes only and shall not be construed to create any responsibility or liability on the
part of Lender to Grantor or to any other person. The representations and warranties contained herein are based on Grantor’s due
diligence in investigating the Property for Hazardous Substances. Grantor hereby (1) releases and waives any future claims against Lender
for indemnity or contribution in the event Grantor becomes liable for cleanup or other costs under any such laws; and (2) agrees to indemnify,
defend, and hold harmless Lender against any and all claims, losses, liabilities, damages, penalties, and expenses which Lender may directly
or indirectly sustain or suffer resulting from a breach of this section of the Deed of Trust or as a consequence of any use, generation,
manufacture, storage, disposal, release or threatened release occurring prior to Grantor’s ownership or interest in the Property,
whether or not the same was or should have been known to Grantor. The provisions of this section of the Deed of Trust, including the
obligation to indemnify and defend, shall survive the payment of the Indebtedness and the satisfaction and reconveyance of the lien of
this Deed of Trust and shall not be affected by Lender’s acquisition of any interest in the Property, whether by foreclosure or
otherwise.

 

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

 

     

     

    

 

		DEED OF TRUST	 
	Loan No: 865137-01	(Continued)	Page 3

 

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

 

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

 

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

 

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

 

DUE
ON SALE - CONSENT BY LENDER. Lender may, at Lender’s option, declare immediately due and payable all sums secured by
this Deed of Trust upon the sale or transfer, without Lender’s prior written consent, of all or any part of the Real Property,
or any interest in the Real Property. A “sale or transfer” means the conveyance of Real Property or any right, title or interest
in the Real Property; whether legal, beneficial or equitable; whether voluntary or involuntary; whether by outright sale, deed, installment
sale contract, land contract, contract for deed, leasehold interest with a term greater than three (3) years, lease-option contract,
or by sale, assignment, or transfer of any beneficial interest in or to any land trust holding title to the Real Property, or by any
other method of conveyance of an interest in the Real Property. However, this option shall not be exercised by Lender if such exercise
is prohibited by federal law or by North Carolina law.

 

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

 

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

 

     

     

    

 

		DEED OF TRUST	 
	Loan No: 865137-01	(Continued)	Page 4

 

 

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

 

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

 

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

 

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

 

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

 

     

     

    

 

		DEED OF TRUST	 
	Loan No: 865137-01	(Continued)	Page 5

 

 

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

 

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

 

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

 

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

 

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

 

     

     

    

 

		DEED OF TRUST	 
	Loan No: 865137-01	(Continued)	Page 6

 

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

     

     

    

 

		DEED OF TRUST	 
	Loan No: 865137-01	(Continued)	Page 7

 

 

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

 

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

 

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

 

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

 

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

 

Further
Assurances. At any time, and from time to time, upon request of Lender, Granter will make, execute and deliver, or will cause to
be made, executed or delivered, to Lender or to Lender’s designee, and when requested by Lender, cause to be filed, recorded, refiled,
or rerecorded, as the case may be, at such times and in such offices and places as Lender may deem appropriate, any and all such mortgages,
deeds of trust, security deeds, security agreements, financing statements, continuation statements, instruments of further assurance,
certificates, and other documents as may, in the sole opinion of Lender, be necessary or desirable in order to effectuate, complete,
perfect, continue, or preserve (1) Grantor’s obligations under the Note, this Deed of Trust, and the Related Documents, and (2)
the liens and security interests created by this Deed of Trust on the Property, whether now owned or hereafter acquired by Granter. The
lien of this Deed of Trust and the security interest granted hereby will automatically attach, without further act, to all after-acquired
property attached to and or used in the operation of the Property or any part thereof. Unless prohibited by law or Lender agrees to the
contrary in writing, Granter shall reimburse Lender for all costs and expenses incurred in connection with the matters referred to in
this paragraph.

 

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

 

     

     

    

 

		DEED OF TRUST	 
	Loan No: 865137-01	(Continued)	Page 8

 

 

FULL
PERFORMANCE. If Granter pays all the Indebtedness when due, and otherwise performs all the obligations imposed upon Granter under
this Deed of Trust, Lender shall execute and deliver to Trustee a request for full reconveyance and shall execute and deliver to Granter
suitable statements of termination of any financing statement on file evidencing Lender’s security interest in the Rents and the
Personal Property. Any reconveyance fee required by law shall be paid by Granter, if permitted by applicable law.

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

     

     

    

 

		DEED OF TRUST	 
	Loan No: 865137-01	(Continued)	Page 9

 

 

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

 

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

 

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

 

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

 

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

 

Insecurity.
Lender in good faith believes itself insecure.

 

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

 

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

 

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

 

     

     

    

 

		DEED OF TRUST	 
	Loan No: 865137-01	(Continued)	Page 10

 

 

Express
Power of Sale Provision. Upon the application or request of Lender, it shall be lawful for and the duty of the Trustee, and the Trustee
is hereby authorized and empowered, to expose to sale and to sell the Property at public auction for cash, after having first complied
with all applicable requirements of North Carolina law with respect to the exercise of powers of sale contained in deeds of trust or
such other sales appropriate under the circumstances; and upon any such sale, the Trustee shall convey title to the purchaser in fee
simple. In the event of any sale under this Deed of Trust by virtue of the exercise of the powers granted in this Deed of Trust, or pursuant
to any order and any judicial proceeding or otherwise, the Property may be sold as an entirety or in separate parcels and in such manner
or order as Lender in its sole discretion may elect. Trustee shall be authorized to hold a sale pursuant to North Carolina General Statute
Chapter 45. If Trustee so elects, Trustee may sell the Property covered by this Deed of Trust at one or more separate sales in any manner
permitted by applicable North Carolina law, and any exercise of the powers granted in this Deed of Trust shall not extinguish or exhaust
such powers, until the entire Property is sold or the Indebtedness is paid in full. If such Indebtedness is now or hereafter further
secured by any chattel mortgages, pledges, contracts of guaranty, assignments of lease or other security instruments, Lender may at its
option exercise the remedies granted under any of the security agreements either concurrently or independently and in such order as Lender
may determine.

 

Foreclosure.
With respect to all or any part of the Real Property, the Trustee shall have the right to foreclose by notice and sale, and Lender
shall have the right to foreclose by judicial foreclosure, in either case in accordance with and to the full extent provided by applicable
law.

 

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

 

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

 

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

 

     

     

    

 

		DEED OF TRUST	 
	Loan No: 865137-01	(Continued)	Page 11

 

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

 

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

 

Notice
of Sale. Lender shall give Granter reasonable notice of the time and place of any public sale of the Personal Property or of the
time after which any private sale or other intended disposition of the Personal Property is to be made. Reasonable notice shall mean
notice given at least ten (10) days before the time of the sale or disposition. Any sale of the Personal Property may be made in conjunction
with any sale of the Real Property.

 

Sale
of the Property. To the extent permitted by applicable law, Granter hereby waives any and all rights to have the Property marshalled.
In exercising its rights and remedies, the Trustee or Lender shall be free to sell all or any part of the Property together or separately,
in one sale or by separate sales. Lender shall be entitled to bid at any public sale on all or any portion of the Property.

 

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

 

Rights
of Trustee. Trustee shall have all of the rights and duties of Lender as set forth in this section.

 

POWERS
AND OBLIGATIONS OF TRUSTEE. The following provisions relating to the powers and obligations of Trustee are part of this Deed of Trust:

 

Powers
of Trustee. In addition to all powers of Trustee arising as a matter of law, Trustee shall have the power to take the following actions
with respect to the Property upon the written request of Lender and Granter: (a) join in preparing and filing a map or plat of the Real
Property, including the dedication of streets or other rights to the public; (b) join in granting any easement or creating any restriction
on the Real Property; and (c) join in any subordination or other agreement affecting this Deed of Trust or the interest of Lender under
this Deed of Trust.

 

     

     

    

 

		DEED OF TRUST	 
	Loan No: 865137-01	(Continued)	Page 12

 

 

Trustee.
Trustee shall meet all qualifications required for Trustee under applicable law. In addition to the rights and remedies set forth
above, with respect to all or any part of the Property, the Trustee shall have the right to foreclose by notice and sale, and Lender
shall have the right to foreclose by judicial foreclosure, in either case in accordance with and to the full extent provided by applicable
law.

 

Trustee’s
Fees. The Trustee’s commission shall be five percent (5%) of the gross proceeds of the sale for a completed foreclosure. In
the event foreclosure is commenced, but not completed, Granter shall pay all expenses incurred by Trustee and partial commission computed
on five percent (5%) of the outstanding Indebtedness, according to the following schedule: one-fourth of the commission before Trustee
issues a notice of hearing on the right to foreclosure; one-half of the commission after issuance of notice of hearing; three-fourths
of the commission after a hearing; and the full commission after the initial sale.

 

Express
Power to Substitute a Trustee. Lender shall have the irrevocable right to remove at any time and from time to time without limit
the Trustee named in this Deed of Trust without notice or cause and to appoint a successor by an instrument in writing, duly acknowledged,
in such a form as to entitle such written instrument to be recorded in the State of North Carolina; and, in the event of the death or
resignation of the Trustee named in this Deed of Trust, Lender shall have the right to appoint a successor by such written instrument,
and any Trustee so appointed shall be vested with the title to the Property, and shall possess all the powers, duties and obligations
herein conferred on the Trustee in the same manner and to the same extent as though the successor trustee were named in this Deed of
Trust as Trustee.

 

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

 

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

 

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

 

     

     

    

 

		DEED OF TRUST	 
	Loan No: 865137-01	(Continued)	Page 13

 

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

     

     

    

 

		DEED OF TRUST	 
	Loan No: 865137-01	(Continued)	Page 14

 

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

 

Beneficiary.
The word “Beneficiary” means Charlotte Metro Federal Credit Union, and its successors and assigns.

 

Borrower.
The word “Borrower” means Red Fox MHP LLC and includes all co-signers and co-makers signing the Note and all their successors
and assigns.

 

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

 

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

 

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

 

Existing
Indebtedness. The words “Existing Indebtedness” mean the indebtedness described in the Existing Liens provision of this
Deed of Trust.

 

Granter.
The word “Grantor’’ means Red Fox MHP LLC.

 

Guarantor.
The word “Guarantor” means any guarantor, surety, or accommodation party of any or all of the Indebtedness.

 

Guaranty.
The word “Guaranty” means the guaranty from Guarantor to Lender, including without limitation a guaranty of all or part
of the Note.

 

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

 

     

     

    

 

		DEED OF TRUST	 
	Loan No: 865137-01	(Continued)	Page 15

 

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

 

Indebtedness.
The word “Indebtedness” means all principal, interest, and other amounts, costs and expenses payable under the Note or
Related Documents, together with all renewals of, extensions of, modifications of, consolidations of and substitutions for the Note or
Related Documents and any amounts expended or advanced by Lender to discharge Grantor’s obligations or expenses incurred by Trustee
or Lender to enforce Grantor’s obligations under this Deed of Trust, together with interest on such amounts as provided in this
Deed of Trust.

 

Lender.
The word “Lender” means Charlotte Metro Federal Credit Union, its successors and assigns.

 

Note.
The word “Note” means the promissory note dated July 29, 2022, in the original principal amount of $2,250,000.00 from
Grantor to Lender, together with all renewals of, extensions of, modifications of, refinancings of, consolidations of, and substitutions
for the promissory note or agreement.

 

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

 

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

 

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

 

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

 

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

 

Trustee.
The word “Trustee” means Charles R. Buckley, 111, whose address is 4421 Sharon Road, Suite 200, Charlotte, NC 28211 and
any substitute or successor trustees.

 

     

     

    

 

		DEED OF TRUST	 
	Loan No: 865137-01	(Continued)	Page 16

 

 

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

 

	GRANTOR:	 
	 	 
	RED FOX MHP LLC	 
	 	 
	MANUFACTURED HOUSING PROPERTIES, INC.,
    Member of Red Fox MHP LLC	 
	 	 
	By: 	/s/
    Jay Wardlaw III	 
	 	Jay Wardlaw, Ill, 

    President of Manufactured Housing Properties, Inc.	 

 

 

 

LIMITED
LIABILITY COMPANY ACKNOWLEDGMENT

 

	STATE OF 	North
    Carolina	 	 
	 	 	) ss
	 	 	 
	COUNTY OF 	Mecklenburg		)
	 	 	 
		 	 
		 	 

 

I,
Alexander Q. Olliver, a Notary Public for said County and State, certify that Jay Wardlaw, Ill, President of Manufactured
Housing Properties, Inc., Member of Red Fox MHP LLC personally came before me this day and acknowledged the due execution of the
foregoing instrument in writing by himself or herself for Red Fox MHP LLC, a limited liability company, for the uses and purposes
therein set forth.

 

Witness
my hand and Notarial Seal this the 28 day of July 2022

 

	 	 	/s/
    Alexander Q. Olliver
	 	 	Notary Public
	 My Commission Expires:	 	 
	March 25,
    2024	 	 
	 	 	 
	(Affix Notarial Seal Here)	 	 

 

     

     

    

 

		DEED OF TRUST	 
	Loan No: 865137-01	(Continued)	Page 17

 

 

 

LaserPro,
Ver. 22.1.0.044 Copr. Finastra USA Corporation 1997, 2022.All Rights Reserved.- NC L:\CFI\LPL\G01.FC TR-4433 PR-58

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