Document:

August 2, 2012 8K Exhibit 10.3

EXHIBIT 10.3

TERM NOTE

	

$2,625,000.00

	

Fresno, California

July 2, 2012

FOR VALUE RECEIVED, the undersigned S&W SEED COMPANY ("Borrower") promises to pay to the order of WELLS
FARGO BANK, NATIONAL ASSOCIATION ("Bank") at its office at 8405 N. Fresno Street, Suite 200, Fresno, California, 93720, or at
such other place as the holder hereof may designate, in lawful money of the United States of America and in immediately available
funds, the principal sum of Two Million Six Hundred Twenty Five Thousand Dollars ($2,625,000.00), with interest thereon as set forth
herein.

DEFINITIONS:

As used herein, the following terms shall have the meanings set forth after each, and any other term defined in this Note shall have
the meaning set forth at the place defined:

	"Business Day" means any day except a Saturday, Sunday or any other day on which commercial banks in California are
authorized or required by law to close.

	"Fixed Rate Term" means a period of one (1), three (3) or six (6) months, as designated by Borrower, during which the entire
outstanding principal balance of this Note bears interest determined in relation to LIBOR, with the understanding that (i) the initial Fixed
Rate Term shall commence on the date this Note is disbursed, (ii) each successive Fixed Rate Term shall commence automatically,
and without notice to or consent from Borrower, on the first Business' Day following the date on which the immediately preceding Fixed
Rate Term matures, and (iii) if, on the first Business Day of the last Fixed Rate Term applicable hereto the remaining term of this Note
is less than the shortest permitted Fixed Rate Term, said Fixed Rate Term shall be in effect only until the scheduled maturity date
hereof. If any Fixed Rate Term would end on a day which is not a Business Day, then such Fixed Rate Term shall be extended to the
next succeeding Business Day.

	"LIBOR" means the rate per annum (rounded upward, if necessary, to the nearest whole 1/8 of 1%) and determined pursuant to
the following formula:

LIBOR =Base LIBOR          

   100% - LIBOR Reserve Percentage

(i)"Base LIBOR" means the rate per annum for United States dollar deposits
quoted by Bank as the Inter-Bank Market Offered Rate, with the understanding that such
rate is quoted by Bank for the purpose of calculating effective rates of interest for loans making reference thereto, on the first day of a
Fixed Rate Term for delivery of funds on said date for a period of time approximately equal to the number of days in such Fixed Rate
Term and in an amount approximately equal to the principal amount to which such Fixed Rate Term applies. Borrower understands and
agrees that Bank may base its quotation of the Inter-Bank Market Offered Rate upon such offers or other market indicators of the
Inter-Bank Market as Bank in its discretion deems appropriate including, but not limited to, the rate offered for U.S. dollar deposits on the
London Inter-Bank Market.

                                                   -1-

(ii)"LIBOR Reserve Percentage" means the reserve percentage prescribed by the Board of Governors of the Federal Reserve
System (or any successor) for "Eurocurrency Liabilities" (as defined in Regulation D of the Federal Reserve Board, as amended),
adjusted by Bank for expected changes in such reserve percentage during the applicable Fixed Rate Term. 

	"Prime Rate" means at any time the rate of interest most recently announced within Bank at its principal office as its Prime
Rate, with the understanding that the Prime Rate is one of Bank's base rates and serves as the basis upon which effective rates of
interest are calculated for those loans making reference thereto, and is evidenced by the recording thereof after its announcement in
such internal publication or publications as Bank may designate.

INTEREST:

	Interest.  The outstanding principal balance of this Note shall bear interest (computed on the basis of a 360-day year,
actual days elapsed) at a fixed rate per annum determined by Bank to be two and thirty five hundredths percent (2.35%) above LIBOR
in effect on the first day of each Fixed Rate Term. With respect to each Fixed Rate Term hereunder, Bank is hereby authorized to note
the date and interest rate applicable thereto and any payments made thereon on Bank's books and records (either manually or by
electronic entry) and/or on any schedule attached to this Note, which notations shall be prima facie evidence of the accuracy of the
information noted. At the time this Note is disbursed and at the end of each Fixed Rate Term, Borrower shall give Bank notice
specifying the length of the applicable Fixed Rate Term. Any such notice may be given by telephone so long as (i) if requested by Bank,
Borrower provides to Bank written confirmation thereof not later than three (3) Business Days after such notice is given, and (ii) such
notice is given to Bank prior to 10:00 a.m. on the first day of the Fixed Rate Term, or at a later time during any Business Day if Bank, at
its sole option but without obligation to do so, accepts Borrower's notice and quotes a fixed rate to Borrower. If Borrower does not
immediately accept a fixed rate when quoted by Bank, the quoted rate shall expire and any subsequent LIBOR request from Borrower
shall be subject to a redetermination by Bank of the applicable fixed rate. If Bank has not received such notice at the time principal is
disbursed hereunder or at the end of any Fixed Rate Term, Borrower shall be deemed to have selected the shortest permitted Fixed
Rate Term.

	Taxes and Regulatory Costs.  Borrower shall pay to Bank immediately upon demand, in addition to any other amounts
due or to became due hereunder, any and all (i) withholdings, interest equalization taxes, stamp taxes or other taxes (except income
and franchise taxes) imposed by any domestic or foreign governmental authority and related in any manner to LIBOR, and (ii) future,
supplemental, emergency or other changes in the LIBOR Reserve Percentage, assessment rates imposed by the Federal Deposit
Insurance Corporation, or similar requirements or costs imposed by any domestic or foreign governmental authority or resulting from
compliance by Bank with any request or directive (whether or not having the force of law) from any central bank or other governmental
authority and related in any manner to LIBOR to the extent they are not included in the calculation of LIBOR. In determining which of
the foregoing are attributable to any LIBOR option available to Borrower hereunder, any reasonable allocation made by Bank among its
operations shall be conclusive and binding upon Borrower.

	Payment of Interest.  Interest accrued on this Note shall be payable on the 5th day of each month,
commencing August 5, 2012.

                                                   -2-

	Default Interest.  From and after the maturity date of this Note, or such earlier date as all principal owing hereunder
becomes due and payable by acceleration or otherwise, or at Bank's option upon the occurrence, and during the continuance of an
Event of Default, the lance of this Note shall bear interest at an increased rate per annum (computed on the basis of
a 360-day year, actual days elapsed) equal to four percent (4%) above the rate of interest from time to time applicable to this Note.

REPAYMENT AND PREPAYMENT:

	Repayment - Principal Monthly.   Principal shall be payable on the 5th day of each month, in
installments as set forth, commencing:

	
August 5, 2012 up to and including

July 5, 2013
	

$8,107.00

	
August 5, 2013 up to and including

July 5, 2014
	

$8,353.00

	
August 5, 2014 up to and including

July 5, 2015
	

$8,607.00

	
August 5, 2015 up to and including

July 5, 2016
	

$8,869.00

	
August 5, 2016 up to and including

July 5, 2017
	

$9,139.00

	
August 5, 2017 up to and including

July 5, 2018
	

$9,417.00

	
August 5, 2018 up to and including

July 5, 2019
	

$9,703.00

	 	 

	Repayment - Principal
Annually.   Principal shall be payable on August 5, 2013 and August 5, 2014 in annual installments of Fifty Six Thousand Dollars
($56,000.00), with a final installment consisting of all remaining unpaid principal due and payable in full on July 5, 2019.

	Application of Payments.   Each payment made on this Note shall be credited first, to any interest then due and second, to
the outstanding principal balance hereof.

	Prepayment.   Borrower may prepay principal on this Note at any time and in the minimum amount of One Hundred
Thousand Dollars ($100,000.00); provided however, that if the outstanding principal balance of this Note is less than said amount, the
minimum prepayment amount shall be the entire outstanding principal balance hereof. In consideration of Bank providing this
prepayment option to Borrower, or if this Note shall become due and payable at any time prior to the last day of any Fixed Rate Term
by acceleration or otherwise, Borrower shall pay to Bank immediately upon demand a fee which is the sum of the discounted monthly
differences for each month from the month of prepayment through the month in which such Fixed Rate Term matures, calculated as
follows for each such month:

-3-

	Determine the amount of interest which would have accrued each month on the amount prepaid at the interest rate
applicable to such amount had it remained outstanding until the last day of the Fixed Rate Term applicable thereto.  

	Subtract from the amount determined in (i) above the amount of interest which would have accrued for the same month on the
amount prepaid for the remaining term of such Fixed Rate Term at LIBOR in effect on the date of prepayment for new loans made for
such term and in a principal amount equal to the amount prepaid.

	If the result obtained in (ii) for any month is greater than zero, discount that difference by LIBOR used in (ii) above.

Borrower acknowledges that prepayment of such amount may result in Bank incurring additional costs,
expenses and/or liabilities, and that it is difficult to ascertain the full extent of such costs, expenses and/or liabilities. Borrower,
therefore, agrees to pay the above-described prepayment fee and agrees that said amount represents a reasonable estimate of the
prepayment costs, expenses and/or liabilities of Bank. If Borrower fails to pay any prepayment fee when due, the amount of such
prepayment fee shall thereafter bear interest until paid at a rate per annum two percent (2.00%) above the Prime Rate in effect from
time to time (computed on the basis of a 360-day year, actual days elapsed).

All prepayments of principal shall be applied on the most remote principal installment or installments then unpaid.

SWAP AGREEMENT PROVISIONS:

Notwithstanding anything to the contrary set forth herein, at any time during which an interest rate swap confirmation between
Borrower and Bank (a "Swap Confirmation") is in effect with respect to all or a portion of the principal balance outstanding under this
Note, the following revisions to this Note shall be in effect with respect to that portion of the principal balance outstanding under this
Note which is subject to the Swap Confirmation (the "Swap Portion"), but not with respect to any portion of the principal balance
outstanding under this Note which is not subject to the Swap Confirmation:

	With respect to the Swap Portion, no three (3) or six (6) month LIBOR interest 

option shall be available hereunder.

	With respect to the Swap Portion, the definition of "Fixed Rate Term" shall be 

amended and restated to read as follows:

"Fixed Rate Term" means a period of one (1) month during which the Swap Portion bears interest determined in relation to LIBOR,
with the understanding that (i) the initial Fixed Rate Term shall commence on the later of (A) the effective date stated on the Swap
Confirmation and (B) the date this Note is initially disbursed and shall continue up to, but shall not include, the first day of the next
occurring calculation period designated in the Swap Confirmation, (ii) there shall be successive Fixed Rate Terms thereafter, each of
which shall commence automatically, without

-4-

notice to or consent
from Borrower, and run concurrently with the calculation period designated in the Swap Confirmation and (iii) if, on the first day of the
last Fixed Rate Term applicable hereto the remaining term of this Note is less than one (1) month,  said Fixed Rate Term shall be in
effect only until the scheduled maturity date hereof, except that if the scheduled maturity date hereof is not a Business Day, then such
Fixed Rate Term shall be extended to the next succeeding Business Day.

	The Swap Portion shall be in an amount equal to that portion of the outstanding 

principal balance of the Note that is subject to the one (1) month fixed rate term.

	With respect to the Swap Portion, the definition of "LIBOR" is hereby amended by 

deleting therefrom the parenthetical phrase "(rounded upward, if necessary, to the nearest whole 1/8 of 1%)."

Borrower understands and acknowledges that each Swap Confirmation constitutes an independent agreement between Borrower
and Bank and that nothing contained in this Note shall be construed as amending or modifying any such Swap Confirmation or be
interpreted in any way as inferring or creating an obligation on the part of Bank to amend or modify such Swap Confirmation, based on
any action that may be taken by Borrower in respect of this Note. Further, Borrower acknowledges that Borrower is responsible for
verifying the terms of any Swap Confirmation into which it enters; understands the effect of a Swap Confirmation having payment dates
that do not concur exactly with the payment dates of this Note; and agrees that any Swap Confirmation may still be considered in effect
with respect to any principal portion of this Note even if the payment dates thereon do not concur exactly with the payment dates of this
Note.

EVENTS OF DEFAULT:

This Note is made pursuant to and is subject to the terms and conditions of that certain Credit Agreement
between Borrower and Bank dated as of July 2, 2012, as amended from time to time (the "Credit Agreement"). Any default in the
payment or performance of any obligation under this Note, or any defined event of default under the Credit Agreement, shall constitute
an "Event of Default" under this Note.

MISCELLANEOUS:

	Remedies.   Upon the sale, transfer, hypothecation, assignment or other encumbrance, whether voluntary,
involuntary or by operation of law, of all or any interest in any real property securing this Note, or upon the occurrence of any Event of
Default, the holder of this Note, at the holder's option, may declare all sums of principal and interest outstanding hereunder to be
immediately due and payable without presentment, demand, notice of nonperformance, notice of protest, protest or notice of dishonor,
all of which are expressly waived by Borrower. Borrower shall pay to the holder immediately upon demand the full amount of all
payments, advances, charges, costs and expenses, including reasonable attorneys' fees (to include outside counsel fees and all
allocated costs of the holder's in-house counsel), expended or incurred by the holder in connection with the enforcement of the holder's
rights and/or the collection of any amounts which become due to the holder under this Note, and the prosecution or defense of any
action in any way related to this Note, including without limitation, any action for declaratory relief, whether incurred at the trial or
appellate level, in an

-5-

arbitration proceeding or otherwise, and
including any of the foregoing incurred in connection with any bankruptcy proceeding (including without limitation, any adversary
proceeding, contested matter or motion brought by Bank or any other person) relating to Borrower or any other person or entity.

	Obligations Joint and Several. Should more than one person or entity sign this Note as a Borrower, the obligations of each
such Borrower shall be joint and several.

	Governing Law. This Note shall be governed by and construed in accordance with the laws of the State of
California.

IN WITNESS WHEREOF, the undersigned has executed this Note as of the date first written above.

S&W SEED COMPANY

By: /s/ Matthew K. Szot

       Matthew K. Szot,

       Senior Vice President,

       Chief Financial Officer

   

   

   

-6-August 2, 2012 8K Exhibit 10.4

EXHIBIT 10.4

Recording Requested By,

   And When Recorded
Return To: WELLS FARGO
BANK,

   NATIONAL ASSOCIATION

   1740 Broadway, MAC
C7300-033 Denver, CO
80274

   Attention: Loan Documentation

DEED OF TRUST 

                     AND ASSIGNMENT OF RENTS AND LEASES

THIS DEED OF TRUST AND ASSIGNMENT (this "Deed of Trust") is executed as of July 2, 2012,
by S&W SEED COMPANY, A NEVADA CORPORATION ("Trustor"), to AMERICAN SECURITIES COMPANY, a
corporation ("Trustee"), for the benefit of WELLS FARGO BANK, NATIONAL ASSOCIATION ("Beneficiary").

ARTICLE I.  GRANT IN TRUST

1.1Grant. For the purposes and upon the terms and conditions in this Deed of Trust,
Trustor irrevocably grants, conveys and assigns to Trustee, in trust for the benefit of Beneficiary, with power of sale and right of entry
and possession, Trustor's interest in: (a) all real property located in Imperial County, California, and described on Exhibit A
attached hereto; (b) all easements, rights-of-way and rights used in connection with or as a means of access to any portion of said
real property; (c) all tenements, hereditaments and appurtenances thereof and thereto; (d) all right, title and interest of Trustor, now
owned or hereafter acquired, in and to any land lying within the right-of-way of any street, open or proposed, adjoining said real
property, and any and all sidewalks, alleys and strips and gores of land adjacent to or used in connection with said real property; (e) all
buildings, improvements and landscaping now or hereafter erected or located on said real property; (f) all development rights,
governmental or quasi-governmental licenses, permits or approvals, zoning rights and other similar rights or interests which relate to
the development, use or operation of, or that benefit or are appurtenant to, said real property; (g) all mineral rights, oil and gas rights, air
rights, water or water rights, including without limitation, all wells, canals, ditches and reservoirs of any nature and all rights thereto,
appurtenant to or associated with said real property, whether decreed or undecreed, tributary or non-tributary, surface or underground,
appropriated or unappropriated, and all shares of stock in any water, canal, ditch or reservoir company, and all well permits, water
service contracts, drainage rights and other evidences of any such rights; and (h) all interest or estate which Trustor now has or may
hereafter acquire in said real property and all additions and accretions thereto, and all awards or payments made for the taking of all or
any portion of said real property by eminent domain or any proceeding or purchase in lieu thereof, or any damage to any portion of said
real property (collectively, the "Subject Property"). The listing of specific rights or property shall not be interpreted as a limitation of
general terms.

1.2Address. The address of the Subject Property (if known) is: See Exhibit A
attached hereto, Calipatria, CA. Neither the failure to designate an address nor any inaccuracy in the address designated shall
affect the validity or priority of the lien of this Deed of Trust on the Subject Property as described on Exhibit A. In the event of
any conflict between the provisions of Exhibit A and said address, Exhibit A shall control.

                                                   Page 1

ARTICLE II. OBLIGATIONS SECURED

2.1Obligations Secured.  Trustor makes this grant and assignment for the purpose of securing the
following obligations (each, a "Secured Obligation" and collectively, the "Secured Obligations"):

	payment to Beneficiary of all sums at any time owing and performance of all other obligations arising under
or in connection with that certain promissory note ("Note") dated as of July 2, 2012, in the maximum principal amount of
$2,625,000.00, with interest as provided therein, executed by S&W SEED COMPANY and payable to
Beneficiary or its order, together with the payment and performance of any other indebtedness or obligations incurred in connection
with the credit accommodation evidenced by the Note, whether or not specifically referenced therein; and

	payment and performance of all obligations of Trustor under this Deed of Trust, together with all advances,
payments or other expenditures made by Beneficiary or Trustee as or for the payment or performance of any such obligations of
Trustor; and

	payment and performance of all obligations, if any, and the contracts under which they arise, which any
rider attached to and recorded with this Deed of Trust recites are secured hereby; and

	payment to Beneficiary of all liability, whether liquidated or unliquidated, defined, contingent, conditional or
of any other nature whatsoever, and performance of all other obligations, arising under any swap, derivative, foreign exchange or
hedge transaction or arrangement (or other similar transaction or arrangement howsoever described or defined) at any time entered
into with Beneficiary in connection with any Secured Obligation; and

	payment and performance of all future advances and other obligations that the then record owner of the
Subject Property may agree to pay and/or perform (whether as principal, surety or guarantor) for the benefit of Beneficiary, when any
such advance or other obligation is evidenced by a writing which recites that it is secured by this Deed of Trust; and

	all modifications, extensions and renewals of any of the Secured Obligations (including without limitation, (i)
modifications, extensions or renewals at a different rate of interest, or (ii) deferrals or accelerations of the required principal payment
dates or interest payment dates or both, in whole or in part), however evidenced, whether or not any such modification, extension or
renewal is evidenced by a new or additional promissory note or notes.

2.2Obligations.  The term "obligations" is used herein in its most comprehensive sense and
includes any and all advances, debts, obligations and liabilities heretofore, now or hereafter made, incurred or created, whether
voluntary or involuntary and however arising, whether due or not due, absolute or contingent, liquidated or unliquidated, determined or
undetermined, joint or several, including without limitation, all principal, interest, charges, including prepayment charges and late
charges, and loan fees at any time accruing or assessed on any Secured Obligation.

2.3Incorporation.  All terms of the Secured Obligations are incorporated herein by this
reference. All persons who may have or acquire an interest in the Subject Property are hereby deemed to have notice of the terms of
the Secured Obligations and to have notice, if provided therein, that: (a) the Note or any other Secured Obligation may permit
borrowing, repayment and reborrowing; and (b) the rate of interest on one or more of the Secured Obligations may vary from time to
time.

ARTICLE III. ASSIGNMENT OF RENTS

                                                   Page 2

3.1Assignment.  For the purposes and upon the terms and conditions set forth
herein, Trustor irrevocably assigns to Beneficiary all of Trustor's right, title and interest in, to and under all leases, licenses, rental
agreements and other agreements of any kind relating to the use or occupancy of any of the Subject Property, whether existing as of
the date hereof or at any time hereafter entered into, together with all guarantees of and security for any tenant's or lessee's
performance thereunder, and all amendments, extensions, renewals and modifications thereto (each, a "Lease" and collectively, the
"Leases"), together with any and all other rents, issues and profits of the Subject Property (collectively, "Rents"). This assignment shall
not impose upon Beneficiary any duty to produce Rents from the Subject Property, nor cause Beneficiary to be: (a) a "mortgagee in
possession" for any purpose; (b) responsible for performing any of the obligations of the lessor or landlord under any Lease; or (c)
responsible for any waste committed by any person or entity at any time in possession of the Subject Property or any part thereof, or for
any dangerous or defective condition of the Subject Property, or for any negligence in the management, upkeep, repair or control of the
Subject Property. This is an absolute assignment, not an assignment for security only, and Beneficiary's right to Rents is not contingent
upon and may be exercised without taking possession of the Subject Property. Trustor agrees to execute and deliver to Beneficiary,
within 5 days of Beneficiary's written request, such additional documents as Beneficiary or Trustee may reasonably request to further
evidence the assignment to Beneficiary of any and all Leases and Rents. Beneficiary or Trustee, at Beneficiary's option and without
notice, may notify any lessee or tenant of this assignment of the Leases and Rents.

3.2Protection of Security.  To protect the security of this assignment, Trustor agrees:

	At Trustor's sole cost and expense: (i) to perform each obligation to be performed by the lessor or landlord
under each Lease and to enforce or secure the performance of each obligation to be performed by the lessee or tenant under each
Lease; (ii) not to modify any Lease in any material respect, nor accept surrender under or terminate the term of any Lease; (iii) not to
anticipate the Rents under any Lease; and (iv) not to waive or release any lessee or tenant of or from any Lease obligations. Trustor
assigns to Beneficiary all of Trustor's right and power to modify the terms of any Lease, to accept a surrender under or terminate the
term of or anticipate the Rents under any Lease, and to waive or release any lessee or tenant of or from any Lease obligations, and any
attempt on the part of Trustor to exercise any such rights or powers without Beneficiary's prior written consent shall be a breach of the
terms hereof.

	At Trustor's sole cost and expense, to defend any action in any manner connected with any Lease or the
obligations thereunder, and to pay all costs of Beneficiary or Trustee, including reasonable attorneys' fees, in any such action in which
Beneficiary or Trustee may appear.

	That, should Trustor fail to do any act required to be done by Trustor under a Lease, then Beneficiary or
Trustee, but without obligation to do so and without notice to Trustor and without releasing Trustor from any obligation hereunder, may
make or do the same in such manner and to such extent as Beneficiary or Trustee deems necessary to protect the security hereof, and,
in exercising such powers, Beneficiary or Trustee may employ attorneys and other agents, and Trustor shall pay necessary costs and
reasonable attorneys' fees incurred by Beneficiary or Trustee, or their agents, in the exercise of the powers granted herein. Trustor shall
give prompt notice to Beneficiary of any default by any lessee or tenant under any Lease, and of any notice of default on the part of
Trustor under any Lease received from a lessee or tenant thereunder, together with an accurate and complete copy thereof.

	To pay to Beneficiary immediately upon demand all sums expended under the authority hereof, including
reasonable attorneys' fees, together with interest thereon at the highest rate per annum payable under any Secured Obligation, and the
same, at Beneficiary's option, may be added to any Secured Obligation and shall be secured hereby.

                                                   Page 3

3.3License.  Beneficiary confers upon Trustor a license ("License") to collect and retain
the Rents as, but not before, they come due and payable, until the occurrence of any Default. Upon the occurrence of any Default, the
License shall be automatically revoked, and Beneficiary or Trustee may, at Beneficiary's option and without notice, either in person or
by agent, with or without bringing any action, or by a receiver to be appointed by a court: (a) enter, take possession of, manage and
operate the Subject Property or any part thereof; (b) make, cancel, enforce or modify any Lease; (c) obtain and evict tenants, fix or
modify Rents, and do any acts which Beneficiary or Trustee deems proper to protect the security hereof; and (d) either with or without
taking possession of the Subject Property, in its own name, sue for or otherwise collect and receive all Rents, including those past due
and unpaid, and apply the same in accordance with the provisions of this Deed of Trust. The entering and taking possession of the
Subject Property, the collection of Rents and the application thereof as aforesaid, shall not cure or waive any Default, nor waive, modify
or affect any notice of default hereunder, nor invalidate any act done pursuant to any such notice. The License shall not grant to
Beneficiary or Trustee the right to possession, except as provided in this Deed of Trust.

ARTICLE IV. RIGHTS AND DUTIES OF THE PARTIES

4.1Title. Trustor warrants that, except as disclosed to Beneficiary prior to the date
hereof in a writing which refers to this warranty, Trustor lawfully possesses and holds fee simple title to, or if permitted by Beneficiary in
writing a leasehold interest in, the Subject Property without limitation on the right to encumber, as herein provided, and that this Deed of
Trust is a valid lien on the Subject Property and all of Trustor's interest therein.

4.2Taxes and Assessments.  Subject to the right, if any, of Trustor to contest payment of
the following pursuant to any other agreement between Trustor and Beneficiary, Trustor shall pay prior to delinquency all taxes,
assessments, levies and charges imposed: (a) by any public or quasi-public authority or utility company which are or which may
become a lien upon or cause a loss in value of the Subject Property or any interest therein; or (b) by any public authority upon
Beneficiary by reason of its interest in any Secured Obligation or in the Subject Property, or by reason of any payment made to
Beneficiary pursuant to any Secured Obligation; provided however, that Trustor shall have no obligation to pay any income taxes of
Beneficiary. Promptly upon request by Beneficiary, Trustor shall furnish to Beneficiary satisfactory evidence of the payment of all of the
foregoing. Beneficiary is hereby authorized to request and receive from the responsible governmental and non-governmental personnel
written statements with respect to the accrual and payment of any of the foregoing.

4.3Performance of Secured Obligations.  Trustor shall promptly pay and perform each Secured Obligation
when due.

4.4Liens. Encumbrances and Charges.  Trustor shall immediately discharge any lien on
the Subject Property not approved by Beneficiary in writing. Except as otherwise provided in any Secured Obligation or other
agreement with Beneficiary, Trustor shall pay when due all obligations secured by or reducible to liens and encumbrances which shall
now or hereafter encumber the Subject Property, whether senior or subordinate hereto, including without limitation, any mechanics'
liens.

4.5Insurance.  Trustor shall insure the Subject Property against loss or damage by fire
and such other risks as Beneficiary shall from time to time require. Trustor shall carry public liability insurance, flood insurance as
required by applicable law and such other insurance as Beneficiary may reasonably require, including without limitation, terrorism,
business interruption insurance or loss of rental value insurance. Trustor shall maintain all required insurance at Trustor's expense,
under policies issued by companies and in form and substance satisfactory to Beneficiary. Neither Beneficiary nor Trustee, by reason of
accepting, rejecting, approving or obtaining insurance, shall incur any liability for: (a) the existence, nonexistence, form or legal
sufficiency thereof; (b) the solvency of any insurer; or (c) the payment of losses. All policies and certificates of insurance shall
name Beneficiary as loss payee, and shall provide that the insurance cannot be terminated as to Beneficiary except upon a minimum of
10

                                                   Page 4

days' prior written notice to Beneficiary. Immediately upon any request by Beneficiary, Trustor shall deliver to
Beneficiary the original of all such policies or certificates, with receipts evidencing annual prepayment of the premiums.

4.6Tax and Insurance Impounds.  At Beneficiary's option and upon its demand, Trustor
shall, until all Secured Obligations have been paid in full, pay to Beneficiary monthly, annually or as otherwise directed by Beneficiary
an amount estimated by Beneficiary to be equal to: (a) all taxes, assessments, levies and charges imposed by any public or quasi-public
authority or utility company which are or may become a lien upon the Subject Property and will become due for the tax year
during which such payment is so directed; and (b) premiums for fire, other hazard and mortgage insurance next due. If Beneficiary
determines that amounts paid by Trustor are insufficient for the payment in full of such taxes, assessments, levies and/or insurance
premiums, Beneficiary shall notify Trustor of the increased amount required for the payment thereof when due, and Trustor shall pay to
Beneficiary such additional amount within 30 days after notice from Beneficiary. All amounts so paid shall not bear interest, except to
the extent and in the amount required by law. So long as there is no Default, Beneficiary shall apply said amounts to the payment of, or
at Beneficiary's sole option release said funds to Trustor for application to and payment of, such taxes, assessments, levies, charges
and insurance premiums. If a Default exists, Beneficiary at its sole option may apply all or any part of said amounts to any Secured
Obligation and/or to cure such Default, in which event Trustor shall be required to restore all amounts so applied, as well as to cure any
Default not cured by such application. Trustor hereby grants and transfers to Beneficiary a security interest in all amounts so paid and
held in Beneficiary's possession, and all proceeds thereof, to secure the payment and performance of each Secured Obligation. Upon
assignment of this Deed of Trust, Beneficiary shall have the right to assign all amounts collected and in its possession to its assignee,
whereupon Beneficiary and Trustee shall be released from all liability with respect thereto. The existence of said impounds shall not
limit Beneficiary's rights under any other provision of this Deed of Trust or any other agreement, statute or rule of law. Within 95 days
following full repayment of all Secured Obligations (other than as a consequence of a foreclosure or conveyance in lieu of foreclosure of
the liens and security interests securing any Secured Obligation), or at such earlier time as Beneficiary in its discretion may elect, the
balance of all amounts collected and in Beneficiary's possession shall be paid to Trustor, and no other party shall have any right of
claim thereto.

4.7Damages: Insurance and Condemnation Proceeds.

	(i) All awards of damages and all other compensation payable directly or indirectly by reason of a
condemnation or proposed condemnation (or transfer in lieu thereof) for public or private use affecting the Subject Property; (ii) all other
claims and awards for damages to or decrease in value of the Subject Property; (iii) all proceeds of any insurance policies payable by
reason of loss sustained to the Subject Property; and (iv) all interest which may accrue on any of the foregoing, are all absolutely and
irrevocably assigned to and shall be paid to Beneficiary. At the absolute discretion of Beneficiary, whether or not its security is or may
be impaired, but subject to applicable law if any, and without regard to any requirement contained in any other Section hereof,
Beneficiary may apply all or any of the proceeds it receives to its expenses in settling, prosecuting or defending any such claim and
apply the balance to the Secured Obligations in any order, and release all or any part of the proceeds to Trustor upon any conditions
Beneficiary may impose. Beneficiary may commence, appear in, defend or prosecute any assigned claim or action, and may adjust,
compromise, settle and collect all claims and awards assigned to Beneficiary; provided however, that in no event shall Beneficiary be
responsible for any failure to collect any claim or award, regardless of the cause of the failure.

	At its sole option, Beneficiary may permit insurance or condemnation proceeds held by Beneficiary to be
used for repair or restoration but may impose any conditions on such use as Beneficiary deems necessary.

                                                   Page 5

4.8 Maintenance and Preservation of Subject Property.  Subject to the provisions of any Secured Obligation,
Trustor covenants:

	to keep the Subject Property in good condition and repair;

	except with Beneficiary's prior written consent, not to remove or demolish the Subject Property, nor alter,
restore or add to the Subject Property, nor initiate or acquiesce in any change in any zoning or other land classification which affects
the Subject Property;

	to restore promptly and in good workmanlike manner any portion of the Subject Property which may be
damaged or destroyed, unless Beneficiary requires that all of the insurance proceeds be used to reduce the Secured Obligations as
provided in the Section hereof entitled Damages: Insurance and Condemnation Proceeds.

	to comply with and not to suffer violation of any or all of the following which govern acts or conditions on, or
otherwise affect the Subject Property: (i) laws, ordinances, regulations, standards and judicial and administrative rules and orders; (ii)
covenants, conditions, restrictions and equitable servitudes, whether public or private; and (iii) requirements of insurance companies
and any bureau or agency which establishes standards of insurability;

	not to commit or permit waste of the Subject Property; and

	to do all other acts which from the character or use of the Subject Property may be reasonably necessary
to maintain and preserve its value.

4.9 Hazardous Substances: Environmental Provision..  Trustor represents and warrants to Beneficiary as
follows:

	Except as disclosed to Beneficiary in writing prior to the date hereof, the Subject Property is not and has
not been a site for the use, generation, manufacture, storage, treatment, disposal, release or threatened release, transportation or
presence of any substances which are "hazardous substances," "hazardous wastes," "hazardous materials" or "toxic substances" under
the Hazardous Materials Laws, as defined below, and/or other applicable environmental laws, ordinances and regulations (collectively,
the "Hazardous Materials").

	The Subject Property is in compliance with all laws, ordinances and regulations relating to Hazardous
Materials (collectively, the "Hazardous Materials Laws"), including without limitation, the Clean Air Act, the Federal Water Pollution
Control Act, the Federal Resource Conservation and Recovery Act of 1976, the Comprehensive Environmental Response,
Compensation and Liability Act of 1980, the Superfund Amendments and Reauthorization Act of 1986, the Federal Toxic Substances
Control Act and the Occupational Safety and Health Act, as any of the same may be amended, modified or supplemented from time to
time, and any other applicable federal, state or local environmental laws, and any rules or regulations adopted pursuant to any of the
foregoing.

	There are no claims or actions pending or threatened against Trustor or the Subject Property by any
governmental entity or agency, or any other person or entity, relating to any Hazardous Materials or pursuant to any Hazardous
Materials Laws.

	Trustor hereby agrees to defend, indemnify and hold harmless Beneficiary, its directors, officers,
employees, agents, successors and assigns, from and against any and all losses, damages, liabilities, claims, actions, judgments, court
costs and legal or other expenses (including without limitation, attorneys' fees and expenses) which Beneficiary may incur as a direct or
indirect consequence of the use, generation, manufacture, storage, treatment, disposal,

                                                   Page 6

release or threatened release, transportation or presence of Hazardous Materials in, on, under or about the
Subject Property. Trustor shall pay to Beneficiary immediately upon demand any amounts owing under this indemnity, together with
interest from the date of demand until paid in full at the highest rate of interest applicable to any Secured Obligation. TRUSTOR'S
DUTY AND OBLIGATION TO DEFEND, INDEMNIFY AND HOLD HARMLESS BENEFICIARY SHALL SURVIVE THE
CANCELLATION OF THE SECURED OBLIGATIONS AND THE RELEASE, RECONVEYANCE OR PARTIAL RECONVEYANCE OF
THIS DEED OF TRUST.

	Trustor shall immediately advise Beneficiary in writing upon Trustor's discovery of any occurrence or
condition on the Subject Property, or on any real property adjoining or in the vicinity of the Subject Property that does or could cause all
or any part of the Subject Property, to be contaminated with any Hazardous Materials or otherwise be in violation of any Hazardous
Materials Laws, or cause the Subject Property to be subject to any restrictions on the ownership, occupancy, transferability or use
thereof under any Hazardous Materials Laws.

	Trustor and Beneficiary agree that this Section is intended as Beneficiary's written request for information
(and Trustor's response) concerning the environmental condition of the Subject Property as required by California Code of Civil
Procedure  726.5, and that each representation and warranty contained in this Section (together with any indemnity applicable to a
breach of any such representation and warranty) with respect to the environmental condition of the Subject Property is intended by
Trustor and Beneficiary to be an "environmental provision" for purposes of California Code of Civil Procedure  736.

4.10Protection of Security.  Trustor shall, at Trustor's sole expense: (a) protect, preserve
and defend the Subject Property and Trustor's title and right to possession of the Subject Property against all adverse claims; (b) if
Trustor's interest in the Subject Property is a leasehold interest or estate, pay and perform in a timely manner all obligations to be paid
and/or performed by the lessee or tenant under the lease or other agreement creating such leasehold interest or estate; and (c) protect,
preserve and defend the security of this Deed of Trust and the rights and powers of Beneficiary and Trustee under this Deed of Trust
against all adverse claims. Trustor shall give Beneficiary and Trustee prompt notice in writing of the assertion of any claim, the filing of
any action or proceeding, or the occurrence of any damage, condemnation offer or other action relating to or affecting the Subject
Property and, if Trustor's interest in the Subject Property is a leasehold interest or estate, of any notice of default or demand for
performance under the lease or other agreement pursuant to which such leasehold interest or estate was created or exists.

4.11 Acceptance of Trust: Powers and Duties of Trustee.  Trustee accepts this trust
when this Deed of Trust is executed. From time to time, upon written request of Beneficiary and, to the extent required by applicable
law presentation of this Deed of Trust for endorsement, and without affecting the personal liability of any person for payment of any
indebtedness or performance of any of the Secured Obligations, Beneficiary, or Trustee at Beneficiary's direction, may, without
obligation to do so or liability therefor and without notice: (a) reconvey all or any part of the Subject Property from the lien of this Deed
of Trust; (b) consent to the making of any map or plat of the Subject Property; and (c) join in any grant of easement thereon, any
declaration of covenants and restrictions, any extension agreement or any agreement subordinating the lien or charge of this Deed of
Trust. Trustee or Beneficiary may from time to time apply to any court of competent jurisdiction for aid and direction in the execution of
the trusts and the enforcement of the rights and remedies available under this Deed of Trust, and may obtain orders or decrees
directing, confirming or approving acts in the execution of said trusts and the enforcement of said rights and remedies. Trustee has no
obligation to notify any party of any pending sale or any action or proceeding (including, but not limited to, actions in which Trustor,
Beneficiary or Trustee shall be a party) unless held or commenced and maintained by Trustee under this Deed of Trust. Trustee shall
not be obligated to perform any act required of it under this Deed of Trust unless the performance of the act is requested in writing and
Trustee is reasonably indemnified against all losses, costs, liabilities and expenses in connection therewith.

                                                   Page 7

4.12Compensation; Exculpation: Indemnification.

	Trustor shall pay all Trustee's fees and reimburse Trustee for all expenses in the administration of
this trust, including reasonable attorneys' fees. Trustor shall pay Beneficiary reasonable compensation for services rendered concerning
this Deed of Trust, including without limitation, the providing of any statement of amounts owing under any Secured Obligation.
Beneficiary shall not directly or indirectly be liable to Trustor or any other person as a consequence of: (i) the exercise of any rights,
remedies or powers granted to Beneficiary in this Deed of Trust; (ii) the failure or refusal of Beneficiary to perform or discharge any
obligation or liability of Trustor under this Deed of Trust or any Lease or other agreement related to the Subject Property; or (iii) any loss
sustained by Trustor or any third party as a result of Beneficiary's failure to lease the Subject Property after any Default or from any
other act or omission of Beneficiary in managing the Subject Property after any Default unless such loss is caused by the willful
misconduct or gross negligence of Beneficiary; and no such liability shall be asserted or enforced against Beneficiary, and all such
liability is hereby expressly waived and released by Trustor.

	Trustor shall indemnify Trustee and Beneficiary against, and hold them harmless from, any and all losses,
damages, liabilities, claims, causes of action, judgments, court costs, attorneys' fees and other legal expenses, costs of evidence of
title, costs of evidence of value, and other expenses which either may suffer or incur: (i) by reason of this Deed of Trust; (ii) by reason of
the execution of this trust or the performance of any act required or permitted hereunder or by law; (iii) as a result of any failure of
Trustor to perform Trustor's obligations; or (iv) by reason of any alleged obligation or undertaking of Beneficiary to perform or discharge
any of the representations, warranties, conditions, covenants or other obligations contained in any other document related to the
Subject Property, including without limitation, the payment of any taxes, assessments, rents or other lease obligations, liens,
encumbrances or other obligations of Trustor under this Deed of Trust. Trustor's duty to indemnify Trustee and Beneficiary shall survive
the payment, discharge or cancellation of the Secured Obligations and the release or reconveyance, in whole or in part, of this Deed of
Trust.

	Trustor shall pay all indebtedness arising under this Section immediately upon demand by Trustee or
Beneficiary, together with interest thereon from the date such indebtedness arises at the highest rate per annum payable under any
Secured Obligation. Beneficiary may, at its option, add any such indebtedness to any Secured Obligation.

4.13Substitution of Trustees.  From time to time, by a writing signed and acknowledged
by Beneficiary and recorded in each Office in which this Deed of Trust is recorded, Beneficiary may appoint another trustee to act in the
place and stead of Trustee or any successor. Such writing shall set forth the recordation date and any recording or other information
required by law. The recordation of such instrument of substitution shall discharge Trustee herein named and shall appoint the new
trustee as the trustee hereunder with the same effect as if originally named Trustee herein. A writing recorded pursuant to the
provisions of this Section shall be conclusive proof of the proper substitution of such new Trustee.

4.14Due on Sale or Encumbrance.  Except as permitted by the provisions of any
Secured Obligation or applicable law, if the Subject Property or any interest therein shall be sold, transferred (including without
limitation, where applicable, through sale or transfer of a majority or controlling interest of the corporate stock, or any general
partnership, limited liability company or other similar interests of Trustor), mortgaged, assigned, encumbered or leased, whether
voluntarily, involuntarily or by operation of law (each of which actions and events is called a "Transfer"), without Beneficiary's prior
written consent, THEN Beneficiary may, at its sole option, declare all Secured Obligations immediately due and payable in full. Trustor
shall notify Beneficiary in writing of each Transfer within 10 business days of the date thereof.

                                                   Page 8

4.15 Releases. Extensions. Modifications and Additional Security.  Without notice to or
the consent, approval or agreement of any persons or entities having any interest at any time in the Subject Property or in any manner
obligated under any Secured Obligation (each, an "Interested Party"), Beneficiary may, from time to time, release any Interested Party
from liability for the payment of any Secured Obligation, take any action or make any agreement extending the maturity or otherwise
altering the terms or increasing the amount of any Secured Obligation, accept additional security, and enforce, waive, subordinate or
release all or a portion of the Subject Property or any other security for any Secured Obligation. None of the foregoing actions shall
release or reduce the personal liability of any Interested Party, nor release or impair the priority of the lien of this Deed of Trust upon the
Subject Property.

4.16Reconveyance.  Upon Beneficiary's written request, and solely to the extent required
by applicable law upon surrender of this Deed of Trust and every note or other instrument setting forth any Secured Obligations to
Trustee for cancellation, Trustee shall reconvey, without warranty, the Subject Property, or that portion thereof then covered hereby,
from the lien of this Deed of Trust. The recitals of any matters or facts in any reconveyance executed hereunder shall be conclusive
proof of the truthfulness thereof. To the extent permitted by law, the reconveyance may describe the grantee as "the person or persons
legally entitled thereto." Neither Beneficiary nor Trustee shall have any duty to determine the rights of persons claiming to be rightful
grantees of any reconveyance. When the Subject Property has been fully reconveyed, the last such reconveyance shall operate as a
reassignment of all future Rents to the person or persons legally entitled thereto. Upon Beneficiary's demand, Trustor shall pay all costs
and expenses incurred by Beneficiary in connection with any reconveyance.

4.17Subrogation.  Beneficiary shall be subrogated to the lien of all encumbrances,
whether or not released of record, paid in whole or in part by Beneficiary pursuant to this Deed of Trust or by the proceeds of any
Secured Obligation.

4.18Trustor Different From Obligor ("Third Party Trustor").  As used in this Section, the
term "Obligor" shall mean each person or entity obligated in any manner under any of the Secured Obligations; and the term "Third
Party Trustor" shall mean (1) each person or entity included in the definition of Trustor herein and which is not an Obligor under all of
the Secured Obligations, and (2) each person or entity included in the definition of Trustor herein if any Obligor is not included in said
definition.
(a)Representations and Warranties. Each Third Party Trustor represents and warrants to Beneficiary that:
(i) this Deed of Trust is executed at an Obligor's request; (ii) this Deed of Trust complies with all agreements between each Third Party
Trustor and any Obligor regarding such Third Party Trustor's execution hereof; (iii) Beneficiary has made no representation to any Third
Party Trustor as to the creditworthiness of any Obligor; and (iv) each Third Party Trustor has established adequate means of obtaining
from each Obligor on a continuing basis financial and other information pertaining to such Obligor's financial condition. Each Third Party
Trustor agrees to keep adequately informed from such means of any facts, events or circumstances which might in any way affect such
Third Party Trustor's risks hereunder. Each Third Party Trustor further agrees that Beneficiary shall have no obligation to disclose to
any Third Party Trustor any information or material about any Obligor which is acquired by Beneficiary in any manner. The liability of
each Third Party Trustor hereunder shall be reinstated and revived, and the rights of Beneficiary shall continue if and to the extent that
for any reason any amount at any time paid on account of any Secured Obligation is rescinded or must otherwise be restored by
Beneficiary, whether as a result of any proceedings in bankruptcy or reorganization or otherwise, all as though such amount had not
been paid. The determination as to whether any amount so paid must be rescinded or restored shall be made by Beneficiary in its sole
discretion; provided however, that if Beneficiary chooses to contest any such matter at the request of any Third Party Trustor, each
Third Party Trustor agrees to indemnify and hold Beneficiary harmless from and

                                                   Page 9

against all costs and expenses, including reasonable attorneys' fees, expended or incurred by Beneficiary in
connection therewith, including without limitation, in any litigation with respect thereto.

(b)Waivers.

	Each Third
Party Trustor waives any right to require Beneficiary to: (A) proceed against any Obligor or any other person; (B) marshal assets or
proceed against or exhaust any security held from any Obligor or any other person; (C) give notice of the terms, time and place of any
public or private sale or other disposition of personal property security held from any Obligor or any other person; (D) take any other
action or pursue any other remedy in Beneficiary's power; or (E) make any presentment or demand for performance, or give any notice
of nonperformance, protest, notice of protest or notice of dishonor hereunder or in connection with any obligations or evidences of
indebtedness held by Beneficiary as security for or which constitute in whole or in part the Secured Obligations, or in connection with
the creation of new or additional obligations.

	Each Third Party Trustor waives any defense to its obligations hereunder based upon or arising by reason
of: (A) any disability or other defense of any Obligor or any other person; (B) the cessation or limitation from any cause whatsoever,
other than payment in full, of any Secured Obligation; (C) any lack of authority of any officer, director, partner, agent or any other
person acting or purporting to act on behalf of any Obligor which is a corporation, partnership or other type of entity, or any defect in the
formation of any such Obligor; (D) the application by any Obligor of the proceeds of any Secured Obligation for purposes other than the
purposes represented by any Obligor to, or intended or understood by, Beneficiary or any Third Party Trustor; (E) any act or omission
by Beneficiary which directly or indirectly results in or aids the discharge of any Obligor or any portion of any Secured Obligation by
operation of law or otherwise, or which in any way impairs or suspends any rights or remedies of Beneficiary against any Obligor; (F)
any impairment of the value of any interest in any security for the Secured Obligations or any portion thereof, including without
limitation, the failure to obtain or maintain perfection or recordation of any interest in any such security, the release of any such security
without substitution, and/or the failure to preserve the value of, or to comply with applicable law in disposing of, any such security; (G)
any modification of any Secured Obligation, in any form whatsoever, including without limitation the renewal, extension, acceleration or
other change in time for payment of, or other change in the terms of, any Secured Obligation or any portion thereof, including increase
or decrease of the rate of interest thereon; or (H) any requirement that Beneficiary give any notice of acceptance of this Deed of Trust.
Until all Secured Obligations shall have been paid in full, no Third Party Trustor shall have any right of subrogation, and each Third
Party Trustor waives any right to enforce any remedy which Beneficiary now has or may hereafter have against any Obligor or any
other person, and waives any benefit of, or any right to participate in, any security now or hereafter held by Beneficiary. Each Third
Party Trustor further waives all rights and defenses it may have arising out of: (1) any election of remedies by Beneficiary, even though
that election of remedies, such as a non-judicial foreclosure with respect to any security for any portion of the Secured Obligations,
destroys such Third Party Trustor's rights of subrogation or such Third Party Trustor's rights to proceed against any Obligor for
reimbursement; or (2) any loss of rights any Third Party Trustor may suffer by reason of any rights, powers or remedies of any Obligor
in connection with any anti-deficiency laws or any other laws limiting, qualifying or discharging any Obligor's obligations, whether by
operation of Sections 726, 580a and 580d of the Code of Civil Procedure as from time to time amended, or otherwise, including any
rights any Third Party Trustor may have to a Section 580a fair market value hearing to determine the size of a deficiency following any
foreclosure sale or other disposition of any security for any portion of the Secured Obligations.

                                                   Page 10

	If any of said
waivers is determined to be contrary to any applicable law or public policy, such waiver shall be effective to the extent permitted by
applicable law or public policy.

ARTICLE V. DEFAULT PROVISIONS

5.1Default.  The occurrence of any of the following shall constitute a "Default" under
this Deed of Trust: (a) Trustor shall fail to observe or perform any obligation or agreement contained herein; (b) any representation or
warranty of Trustor herein shall prove to be incorrect, false or misleading in any material respect when made; or (c) any default in the
payment or performance of any obligation, or any defined event of default, under any provisions of the Note or any other contract,
instrument or document executed in connection with, or with respect to, any Secured Obligation.

5.2 Rights and Remedies.  Upon the occurrence of any Default, and at any time thereafter, Beneficiary and
Trustee shall have all the following rights and remedies:

	With or without notice, to declare all Secured Obligations immediately due and payable in full.

	With or without notice, without releasing Trustor from any Secured Obligation and without becoming a
mortgagee in possession, to cure any Default of Trustor and, in connection therewith: (i) to enter upon the Subject Property and to do
such acts and things as Beneficiary or Trustee deems necessary or desirable to protect the security of this Deed of Trust, including
without limitation, to appear in and defend any action or proceeding purporting to affect the security of this Deed of Trust or the rights or
powers of Beneficiary or Trustee hereunder; (ii) to pay, purchase, contest or compromise any encumbrance, charge, lien or claim of lien
which, in the judgment of either Beneficiary or Trustee, is senior in priority to this Deed of Trust, the judgment of Beneficiary or Trustee
being conclusive as between the parties hereto; (iii) to obtain, and to pay any premiums or charges with respect to, any insurance
required to be carried hereunder; and (iv) to employ counsel, accountants, contractors and other appropriate persons to assist
them.

	To commence and maintain an action or actions in any court of competent jurisdiction to foreclose this
Deed of Trust as a mortgage or to obtain specific enforcement of the covenants of Trustor under this Deed of Trust, and Trustor agrees
that such covenants shall be specifically enforceable by injunction or any other appropriate equitable remedy. For the purposes of any
suit brought under this subsection, Trustor waives the defenses of !aches and any applicable statute of limitations.

	To apply to a court of competent jurisdiction for and obtain appointment of a receiver of the Subject
Property as a matter of strict right and without regard to: (i) the adequacy of the security for the repayment of the Secured Obligations;
(ii) the existence of a declaration that the Secured Obligations are immediately due and payable; or (iii) the filing of a notice of default;
and Trustor consents to such appointment.

	To take and possess all documents, books, records, papers and accounts of Trustor or the then owner of
the Subject Property; to make or modify Leases of, and other agreements with respect to, the Subject Property upon such terms and
conditions as Beneficiary deems proper; and to make repairs, alterations and improvements to the Subject Property deemed
necessary, in Trustee's or Beneficiary's judgment, to protect or enhance the security hereof.

	To execute or cause Trustee to execute a written notice of such Default and of its election to cause the
Subject property to be sold to satisfy the Secured Obligations. Trustee shall give and record such notice as the law then requires as a
condition precedent to a trustee's sale.

                                                   Page 11

When the minimum period of time required by law after such notice has elapsed, Trustee, without notice to or
demand upon Trustor, except as otherwise required by law, shall sell the Subject Property at the time and place of sale fixed by it in the
notice of sale, at one or several sales, either as a whole or in separate parcels and in such manner and order, all as directed by
Beneficiary in its sole discretion, at public auction to the highest bidder for cash, in lawful money of the United States, payable at the
time of sale. Except as required by law, neither Trustor nor any other person or entity shall have the right to direct the order in which the
Subject Property is sold. Subject to requirements and limits imposed by law, Trustee may postpone any sale of the Subject Property by
public announcement at such time and place of sale, and from time to time may postpone such sale by public announcement at the
time and place fixed by the preceding postponement. Trustee shall deliver to the purchaser at such sale a deed conveying the Subject
Property or portion thereof so sold, but without any covenant or warranty, express or implied. The recitals in said deed of any matters or
facts shall be conclusive proof of the truthfulness thereof. Any person, including Trustee, Trustor or Beneficiary, may purchase at such
sale.

	To resort to and
realize upon the security hereunder and any other security now or later held by Beneficiary concurrently or successively and in one or
several consolidated or independent judicial actions or lawfully taken non-judicial proceedings, or both, and to apply the proceeds
received in accordance with the Section hereof entitled Application of Foreclosure Sale  Proceeds, all in such order and manner as
Beneficiary shall determine in its sole discretion.

	Upon sale of the Subject Property at any judicial or non-judicial foreclosure, Beneficiary may credit bid (as
determined by Beneficiary in its sole discretion) all or any portion of the Secured Obligations. In determining such credit bid, Beneficiary
may, but is not obligated to, take into account all or any of the following: (i) appraisals of the Subject Property as such appraisals may
be discounted or adjusted by Beneficiary in its sole underwriting discretion; (ii) expenses and costs incurred by Beneficiary with respect
to the Subject Property prior to foreclosure; (iii) expenses and costs which Beneficiary anticipates will be incurred with respect to the
Subject Property after foreclosure, but prior to resale, including without limitation, costs of structural reports and other due diligence,
costs to carry the Subject Property prior to resale, costs of resale (e.g., commissions, attorneys' fees, and taxes), Hazardous Materials
clean-up and monitoring, deferred maintenance, repair, refurbishment and retrofit, and costs of defending or settling litigation affecting
the Subject Property; (iv) declining trends in real property values generally and with respect to properties similar to the Subject
Property; (v) anticipated discounts upon resale of the Subject Property as a distressed or foreclosed property; (vi) the existence of
additional collateral, if any, for the Secured Obligations; and (vii) such other factors or matters that Beneficiary deems appropriate.
Trustor acknowledges and agrees that: (A) Beneficiary is not required to use any or all of the foregoing factors to determine the amount
of its credit bid; (B) this Section does not impose upon Beneficiary any additional obligations that are not imposed by law at the time the
credit bid is made; (C) the amount of Beneficiary's credit bid need not have any relation to any loan-to-value ratios specified in any
agreement between Trustor and Beneficiary or previously discussed by Trustor and Beneficiary; and (D) Beneficiary's credit bid may
be, at Beneficiary's sole discretion, higher or lower than any appraised value of the Subject Property.

5.3 Application of Foreclosure Sale Proceeds.  After deducting all costs, fees and
expenses of Trustee, and of this trust, including costs of evidence of title and attorneys' fees in connection with a sale, all proceeds of
any foreclosure sale shall be applied first, to payment of all Secured Obligations (including without limitation, all sums expended by
Beneficiary under the terms hereof and not then repaid, with accrued interest at the highest rate per annum payable under any Secured
Obligation), in such order and amounts as Beneficiary in its sole discretion shall determine; and the remainder, if any, to the person or
persons legally entitled thereto.

5.4 Application of Other Sums.  All Rents or other sums received by Beneficiary or any agent or receiver
hereunder, less all costs and expenses incurred by Beneficiary or such agent or receiver,

                                                   Page 12

including reasonable
attorneys' fees, shall be applied to payment of the Secured Obligations in such order as Beneficiary shall determine in its sole
discretion; provided however, that Beneficiary shall have no liability for funds not actually received by Beneficiary.

5.5No Cure or Waiver.  Neither Beneficiary's, Trustee's or any receiver's entry upon and
taking possession of the Subject Property, nor any collection of Rents, insurance proceeds, condemnation proceeds or damages, other
security or proceeds of other security, or other sums, nor the application of any collected sum to any Secured Obligation, nor the
exercise of any other right or remedy by Beneficiary, Trustee or any receiver shall impair the status of the security of this Deed of Trust,
or cure or waive any breach, Default or notice of default under this Deed of Trust, or nullify the effect of any notice of default or sale
(unless all Secured Obligations and any other sums then due hereunder have been paid in full and Trustor has cured all other
Defaults), or prejudice Beneficiary or Trustee in the exercise of any right or remedy, or be construed as an affirmation by Beneficiary of
any tenancy, lease or option of the Subject Property or a subordination of the lien of this Deed of Trust.

5.6Costs, Expenses and Attorneys' Fees.  Trustor agrees to pay to Beneficiary
immediately upon demand the full amount of all payments, advances, charges, costs and expenses, including court costs and
reasonable attorneys' fees (to include outside counsel fees and all allocated costs of Beneficiary's in-house counsel), expended or
incurred by Trustee or Beneficiary pursuant to this Article V, whether incurred at the trial or appellate level, in an arbitration proceeding
or otherwise, and including any of the foregoing incurred in connection with any bankruptcy proceeding (including without limitation, any
adversary proceeding, contested matter or motion brought by Beneficiary or any other person) relating to Trustor or in any way affecting
any of the Subject Property or Beneficiary's ability to exercise any of its rights or remedies with respect thereto. All of the foregoing shall
be paid by Trustor with interest from the date of demand until paid in full at the highest rate per annum payable under any Secured
Obligation.

5.7Power to File Notices and Cure Defaults.  Trustor hereby irrevocably appoints
Beneficiary and its successors and assigns as Trustor's true attorney-in-fact to perform any of the following powers, which agency is
coupled with an interest: (a) to execute and/or record any notices of completion, cessation of labor, or any other notices that Beneficiary
deems appropriate to protect Beneficiary's interest; and (b) upon the occurrence of any event, act or omission which with the giving of
notice or the passage of time, or both, would constitute a Default, to perform any obligation of Trustor hereunder; provided however,
that Beneficiary, as such attorney-in-fact, shall only be accountable for such funds as are actually received by Beneficiary, and
Beneficiary shall not be liable to Trustor or any other person or entity for any failure to act under this Section.

5.8 Remedies Cumulative: No Waiver.  All rights, powers and remedies of Beneficiary
and Trustee hereunder are cumulative and are in addition to all rights, powers and remedies provided by law or in any other
agreements between Trustor and Beneficiary. No delay, failure or discontinuance of Beneficiary in exercising any right, power or
remedy hereunder shall affect or operate as a waiver of such right, power or remedy; nor shall any single or partial exercise of any such
right, power or remedy preclude, waive or otherwise affect any other or further exercise thereof or the exercise of any other right, power
or remedy.

ARTICLE VI. MISCELLANEOUS PROVISIONS

6.1No Merger.  No merger shall occur as a result of Beneficiary's acquiring any other estate in, or any
other lien on, the Subject Property unless Beneficiary specifically consents to a merger in writing.

6.2Execution of Documents.  Trustor agrees, upon demand by Beneficiary or Trustee, to execute any and all
documents and instruments required to effectuate the provisions hereof.

                                                   Page 13

6.3 Right of Inspection.  Beneficiary or its agents or employees may enter onto the
Subject Property at any reasonable time for the purpose of inspecting the Subject Property and ascertaining Trustor's compliance with
the terms hereof.

6.4Notices: Requests for Notice.  All notices, requests and demands which Trustor or
Beneficiary is required or may desire to give to the other party must be in writing, delivered to Beneficiary at the following
address:

WELLS FARGO BANK, NATIONAL
ASSOCIATION 8405 N. Fresno Street, Suite
#200

   Fresno, CA 93720

   Attention: Manager

and to Trustor at its address set forth at the signature lines below, or at such other address as either party shall
designate by written notice to the other party in accordance with the provisions hereof. Any Trustor whose address is set forth below
hereby requests that a copy of any notice of default and notice of sale be mailed to such Trustor at that address. Failure to insert an
address shall constitute a designation of Trustor's last known address as the address for any such notice. Trustee's address is
American Securities Company, do Wells Fargo Bank, Denver Loan Center, 1740 Broadway, MAC C7300-033, Denver, CO 80274.

6.5 Successors: Assignment.  This Deed of Trust shall be binding upon and inure to the
benefit of the heirs, executors, administrators, legal representatives, successors and assigns of the parties hereto; provided however,
that this Section does not waive the provisions of the Section hereof entitled Due on Sale or Encumbrance. Beneficiary
reserves the right to sell, assign, transfer, negotiate or grant participations in all or any part of, or any interest in, Beneficiary's rights and
benefits under the Note, any and all other Secured Obligations and this Deed of Trust. In connection therewith, Beneficiary may
disclose all documents and information which Beneficiary now has or hereafter acquires relating to the Subject Property, all or any of
the Secured Obligations and/or Trustor and, as applicable, any partners, joint venturers or members of Trustor, whether furnished by
any Trustor or otherwise.

6.6 Rules of Construction.  (a) When appropriate based on the identity of the parties or
other circumstances, the masculine gender includes the feminine or neuter or both, and the singular number includes the plural; (b) the
term "Subject Property" means all and any part of or interest in the Subject Property; (c) all Section headings herein are for
convenience of reference only, are not a part of this Deed of Trust, and shall be disregarded in the interpretation of any portion of this
Deed of Trust; (d) if more than one person or entity has executed this Deed of Trust as "Trustor," the obligations of all such Trustors
hereunder shall be joint and several; and (e) all terms of Exhibit A, and each other exhibit and/or rider attached hereto and recorded
herewith, are hereby incorporated into this Deed of Trust by this reference.

6.7 Severability of Provisions.  If any provision of this Deed of Trust shall be held to be
prohibited by or invalid under applicable law, such provision shall be ineffective only to the extent of such prohibition or invalidity without
invalidating the remainder of such provision or any remaining provisions of this Deed of Trust.

6.8 Recourse to Separate Property.  Any married person who executes this Deed of
Trust as a Trustor and who is obligated under any Secured Obligation agrees that any money judgment which Beneficiary or Trustee
obtains pursuant to the terms of this Deed of Trust or any other obligation of that married person secured by this Deed of Trust may be
collected by execution upon that person's separate property, and any community property of which that person is a manager.

6.9 Statement of Obligation.  Upon demand by Beneficiary, Trustor shall pay Beneficiary
a fee not to exceed $60.00 or such other maximum as may be imposed by law for furnishing any Statement of Obligation as provided
by Section 2943 of the California Civil Code.

                                                   Page 14

6.10 Governing Law.  This Deed of Trust shall be governed by and construed in accordance with the laws of
the State of California.

6.11 Arbitration.

	Arbitration. The parties hereto agree, upon demand by any party, to submit to binding arbitration
all claims, disputes and controversies between or among them (and their respective employees, officers, directors, attorneys, and other
agents), whether in tort, contract or otherwise in any way arising out of or relating to this Deed of Trust and its negotiation, execution,
collateralization, administration, repayment, modification, extension, substitution, formation, inducement, enforcement, default or
termination.

	Governing Rules. Any arbitration proceeding will (i) proceed in a location in California  selected by
the American Arbitration Association ("AAA"); (ii) be governed by the Federal Arbitration Act (Title 9 of the United States Code),
notwithstanding any conflicting choice of law provision in any of the documents between the parties; and (iii) be conducted by the AAA,
or such other administrator as the parties shall mutually agree upon, in accordance with the AAA's commercial dispute resolution
procedures, unless the claim or counterclaim is at least $1,000,000.00 exclusive of claimed interest, arbitration fees and costs in which
case the arbitration shall be conducted in accordance with the AAA's optional procedures for large, complex commercial disputes (the
commercial dispute resolution procedures or the optional procedures for large, complex commercial disputes to be referred to herein,
as applicable, as the "Rules"). If there is any inconsistency between the terms hereof and the Rules, the terms and procedures set forth
herein shall control. Any party who fails or refuses to submit to arbitration following a demand by any other party shall bear all costs and
expenses incurred by such other party in compelling arbitration of any dispute. Nothing contained herein shall be deemed to be a
waiver by any party that is a bank of the protections afforded to it under 12 U.S.C.  91 or any similar applicable state law.

	No Waiver of Provisional Remedies. Self-Help and Foreclosure.  The arbitration requirement does
not limit the right of any party to (i) foreclose against real or personal property collateral; (ii) exercise self-help remedies relating to
collateral or proceeds of collateral such as setoff or repossession; or (iii) obtain provisional or ancillary remedies such as replevin,
injunctive relief, attachment or the appointment of a receiver, before during or after the pendency of any arbitration proceeding. This
exclusion does not constitute a waiver of the right or obligation of any party to submit any dispute to arbitration or reference hereunder,
including those arising from the exercise of the actions detailed in sections (i), (ii) and (iii) of this paragraph.

	Arbitrator Qualifications and Powers.  Any arbitration proceeding in which the amount in
controversy is $5,000,000.00 or less will be decided by a single arbitrator selected according to the Rules, and who shall not render an
award of greater than $5,000,000.00. Any dispute in which the amount in controversy exceeds $5,000,000.00 shall be decided by
majority vote of a panel of three arbitrators; provided however, that all three arbitrators must actively participate in all hearings and
deliberations. The arbitrator will be a neutral attorney licensed in the State of California or a neutral retired judge of the state or federal
judiciary of California, in either case with a minimum of ten years experience in the substantive law applicable to the subject matter of
the dispute to be arbitrated. The arbitrator will determine whether or not an issue is arbitratable and will give effect to the statutes of
limitation in determining any claim. In any arbitration proceeding the arbitrator will decide (by documents only or with a hearing at the
arbitrator's discretion) any pre-hearing motions which are similar to motions to dismiss for failure to state a claim or motions for
summary adjudication. The arbitrator shall resolve all disputes in accordance with the substantive law of California and may grant any
remedy or relief that a court of such state could
order or grant within the scope hereof and such ancillary relief as is necessary to make
effective any award. The arbitrator shall also have the power to award

                                                   Page 15

recovery of all costs and fees, to impose sanctions and to take such other action as the arbitrator deems
necessary to the same extent a judge could pursuant to the Federal Rules of Civil Procedure, the California Rules of Civil Procedure or
other applicable law. Judgment upon the award rendered by the arbitrator may be entered in any court having jurisdiction. The
institution and maintenance of an action for judicial relief or pursuit of a provisional or ancillary remedy shall not constitute a waiver of
the right of any party, including the plaintiff, to submit the controversy or claim to arbitration if any other party contests such action for
judicial relief.

	Discovery. In any arbitration proceeding, discovery will be permitted in accordance with the Rules. All
discovery shall be expressly limited to matters directly relevant to the dispute being arbitrated and must be completed no later than 20
days before the hearing date. Any requests for an extension of the discovery periods, or any discovery disputes, will be subject to final
determination by the arbitrator upon a showing that the request for discovery is essential for the party's presentation and that no
alternative means for obtaining information is available.

	Class Proceedings and Consolidations. No party hereto shall be entitled to join or consolidate
disputes by or against others in any arbitration, except parties who have executed this Deed of Trust or any other contract, instrument
or document relating to any Secured Obligation, or to include in any arbitration any dispute as a representative or member of a class, or
to act in any arbitration in the interest of the general public or in a private attorney general capacity.

	Payment Of Arbitration Costs And Fees. The arbitrator shall award all costs and expenses of the arbitration
proceeding.

	Real Property: Judicial Reference. Notwithstanding anything herein to the contrary, no dispute
shall be submitted to arbitration unless: (i) Beneficiary specifically elects in writing to proceed with the arbitration; or (ii) all parties to the
arbitration waive any rights or benefits that might accrue to them by virtue of the single action rule statute of California, thereby agreeing
that all Secured Obligations, and all mortgages, liens and security interests securing any of the Secured Obligations, shall remain fully
valid and enforceable. If any such dispute is not submitted to arbitration, the dispute shall be referred to a referee in accordance with
California Code of Civil Procedure Section 638 et seq., and this general reference agreement is intended to be specifically enforceable
in accordance with said Section 638. A referee with the qualifications required herein for arbitrators shall be selected pursuant to the
AAA's selection procedures. Judgment upon the decision rendered by a referee shall be entered in the court in which such proceeding
was commenced in accordance with California Code of Civil Procedure Sections 644 and 645.

	Miscellaneous. To the maximum extent practicable, the AAA, the arbitrators and the parties shall
take all action required to conclude any arbitration proceeding within 180 days of the filing of the dispute with the AAA. No arbitrator or
other party to an arbitration proceeding may disclose the existence, content or results thereof, except for disclosures of information by a
party required in the ordinary course of its business, by applicable law or regulation, or to the extent necessary to exercise any judicial
review rights set forth herein. If more than one agreement for arbitration by or between the parties potentially applies to a dispute, the
arbitration provision most directly related to the documents between the parties or the subject matter of the dispute shall control. This
arbitration provision shall survive termination, amendment or expiration of any of the documents or any relationship between the
parties.

	Small Claims Court. Notwithstanding anything herein to the contrary, each party retains the right
to pursue in Small Claims Court any dispute within that court's jurisdiction. Further, this arbitration provision shall apply only to disputes
in which either party seeks to recover an amount of money (excluding attorneys' fees and costs) that exceeds the jurisdictional limit of
the Small Claims Court.

                                                   Page 16

TRUSTOR PLEASE
NOTE: IN THE EVENT OF YOUR DEFAULT, CALIFORNIA PROCEDURE PERMITS THE TRUSTEE TO SELL THE SUBJECT
PROPERTY AT A SALE HELD WITHOUT SUPERVISION BY ANY COURT AFTER EXPIRATION OF A PERIOD PRESCRIBED BY
LAW (SEE SECTION 5.02(f) ABOVE). UNLESS YOU PROVIDE AN ADDRESS FOR THE GIVING OF NOTICE, YOU MAY NOT BE
ENTITLED TO OTHER NOTICE OF THE COMMENCEMENT OF SALE PROCEEDINGS. BY EXECUTION OF THIS DEED OF
TRUST, YOU CONSENT TO SUCH PROCEDURE. IF YOU HAVE ANY QUESTIONS CONCERNING IT, YOU SHOULD CONSULT
YOUR LEGAL ADVISOR. BENEFICIARY URGES YOU TO GIVE PROMPT NOTICE OF ANY CHANGE IN YOUR ADDRESS SO
THAT YOU MAY RECEIVE PROMPTLY ANY NOTICE GIVEN PURSUANT TO THIS DEED OF TRUST.

IN WITNESS WHEREOF, Trustor has executed this Deed of Trust as of the date first set forth above.

	

Trustor(s)
   
 
	

Address(es)
   

	

S&W SEED COMPANY, A NEVADA

  CORPORATION

By: /s/ Matthew K. Szot           

Matthew K. Szot, Senior Vice
President, Chief Financial Officer

	

25552 S. Butte Avenue             

Five Points, CA 93624          
                              

(OBTAIN NOTARY ACKNOWLEDGMENTS)

   

   

   

   

   

                                                   Page 17

 

/s/ MKS      

Please Initial

EXHIBIT A 

(Description of Property)

Exhibit A to Deed of Trust and Assignment of Rents and Leases executed by S&W SEED COMPANY,
A NEVADA CORPORATION, as Trustor, to AMERICAN SECURITIES COMPANY, a corporation, as Trustee, for the benefit of
WELLS FARGO BANK, NATIONAL ASSOCIATION, as Beneficiary, dated as of July 2, 2012.

 
Legal Description of Property

SECTION 5, TOWNSHIP 12 SOUTH, RANGE 15 EAST, S.B.M., IN AN UNINCORPORATED AREA OF THE COUNTY OF
IMPERIAL, STATE OF CALIFORNIA, ACCORDING TO THE OFFICIAL PLAT THEREOF.

EXCEPTING THEREFROM ALL OIL, GAS, HYDROCARBON AND OTHER SUBSTANCES, MINERALS AND STEAM, IN, ON
AND UNDER SAID LAND, AS GRANTED TO BOB WEINBERG AND MARCHA WEINBERG, HUSBAND AND WIFE, IN DEED
RECORDED MARCH 20, 1972 IN BOOK 1324, PAGE 840, OFFICIAL RECORDS, EXCEPT ALL RIGHT OF SURFACE ENTRY
DOWN TO 500 FEET BELOW THE SURFACE THEREOF.

APN: 026-010-003-000

                                                   Page 1

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