Document:

exv10w2

 

Exhibit 10.2

[FORM]

HOLLY LOGISTIC SERVICES, L.L.C.

EMPLOYEE

RESTRICTED UNIT AGREEMENT

UNDER THE HOLLY ENERGY PARTNERS, L.P.

LONG-TERM INCENTIVE PLAN

     This Restricted Unit Agreement (the “Agreement”) is made and entered into
by and between HOLLY LOGISTIC SERVICES, L.L.C. (the “Company”), and
___________________(the “Employee”). This Agreement is entered into as
of the _____________day of _______________, __________(the “Date of Grant”).

W I T N E S S E T H:

     WHEREAS, the Company has adopted the HOLLY ENERGY PARTNERS, L.P. LONG-TERM
INCENTIVE PLAN (the “Plan”) to attract, retain and motivate employees,
directors and consultants; and

     WHEREAS, the Company believes that a grant to the Employee of restricted
units of HOLLY ENERGY PARTNERS, L.P. (the “Partnership”) as part of the
Employee’s compensation for services provided to the Company is consistent with
the stated purposes for which the Plan was adopted.

     NOW, THEREFORE, it is agreed by and between the Company and the Employee,
in consideration of services rendered by the Employee, as follows:

     1. Grant. The Company hereby grants to the Employee as of the Date of
Grant an award of
          Units (as defined in the Plan), subject to the
terms and conditions set forth in this Agreement, including, without
limitation, those described in Section 5 (the “Restricted Units”).

     2. Restricted Units. The Company shall obtain the Units (as defined in
the Plan) subject to this Agreement and cause such Units to be held for the
Employee in book entry form by the Partnership’s transfer agent with a notation
that the Units are subject to restrictions. The Employee hereby agrees that
the Restricted Units shall be held subject to restrictions as provided in the
Agreement until the restrictions on such Restricted Units expire or the
Restricted Units are forfeited as provided in Section 4 of this Agreement. The
Employee hereby agrees that if part or all of the Restricted Units are
forfeited pursuant to this Agreement, the Company shall have the right to
direct the Partnership’s transfer agent to cancel such forfeited Restricted
Units or, at the Company’s election, transfer such Restricted Units to the
Company or to any designee of the Company.

     3. Rights of Employee. Effective as of the Date of Grant, the Employee is
a unit holder with respect to all of the Restricted Units granted to him
pursuant to Section 1 and has all of the rights of a unit holder with respect
to all such Restricted Units, including the right to

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receive all distributions paid with respect to such Restricted Units and
any right to vote with respect to such Restricted Units; provided, however,
that such Restricted Units shall be subject to the restrictions hereinafter
described, including, without limitation, those described in Section 5.

     4. Forfeiture and Expiration of Restrictions.

          (a) The Employee shall forfeit to the Company all of the Restricted
Units immediately and without any payment to the Employee whatsoever if
the Employee’s employment with the Company or a subsidiary of the Company
is terminated before
            ,           (the “Vesting Date”) for any
reason other than death, total and permanent disability, or retirement,
as provided in Section 4(b) below. On and after such date, all such
Restricted Units shall be fully vested and nonforfeitable (“Vested
Units”).

          (b) In the event of the Employee’s death, total and permanent
disability, as determined by the Compensation Committee (the “Committee”)
of the Board of Directors of the Company (the “Board”) in the Committee’s
sole discretion, or retirement after attaining the normal retirement age
of 62 or retirement after attaining an earlier retirement age approved by
the Committee, in its sole discretion, before lapse of all restrictions
pursuant to Section 4(a) above, the Employee shall be vested with a
number of the Restricted Units equal to the number of Restricted Units
specified in Section 1 times the percentage that the number of days from
            ,
          to the date of death, disability or retirement bears
to           days and any remaining Restricted Units shall be forfeited;
provided, however, that any fractional units will be forfeited to the
Company. The Employee or his designated beneficiary or estate will have
no right to any Restricted Units that remain subject to restrictions, and
those Restricted Units will be forfeited.

          (c) In the event of a “Special Involuntary Termination” as defined
in Section 4(d)(vi) before lapse of all restrictions pursuant to Section
4(a) above, all restrictions described in Section 5 shall lapse and the
Restricted Units will become Vested Units and the Company shall deliver
the Vested Units to the Employee as soon as practicable thereafter.

          (d) Definitions. For purposes of Section 4(c) above,

          (i) “Change in Control” shall mean:

                (A) Any “Person” (as defined in Section 4(d)(i) below),
other than Holly Corporation (“Holly”) or any of its
wholly-owned subsidiaries, HEP Logistics Holdings, L.P. (the
“General Partner”), the Partnership, the Company or any of
their subsidiaries, a trustee or other fiduciary holding
securities under an employee benefit plan of Holly, the
Partnership, the Company or any of their “Affiliates” (as
defined in Section 4(d)(v) below), an underwriter
temporarily holding securities pursuant to an offering of
such securities, or an entity owned, directly or indirectly,
by the holders of the voting securities of Holly, the
Company, the General Partner or the Partnership in
substantially the same

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proportions as their ownership in Holly, the Company,
the General Partner or the Partnership, respectively, is or
becomes the “Beneficial Owner” (as defined in Section
4(d)(iii) below), directly or indirectly, of securities of
Holly, the Company, the General Partner or the Partnership
(not including in the securities beneficially owned by such
Person any securities acquired directly from Holly, the
General Partner, the Partnership, the Company or their
Affiliates) representing more than forty percent (40%) of the
combined voting power of Holly’s, the Company’s, the General
Partner’s or the Partnership’s then outstanding securities,
excluding any Person who becomes such a Beneficial Owner in
connection with a transaction described in Section
4(d)(i)(C)(1) below.

                (B) The individuals who as of the Date of Grant
constitute the Board of Directors of Holly (the “Holly
Board”) and any “New Director” (as defined in Section
4(d)(iv) below) cease for any reason to constitute a majority
of the Holly Board.

                (C) There is consummated a merger or consolidation of
Holly, the Company, the General Partner or the Partnership
with any other entity, except if:

                    (1) the merger or consolidation results in the
voting securities of Holly, the Company, the General
Partner or the Partnership outstanding immediately
prior thereto continuing to represent (either by
remaining outstanding or by being converted into voting
securities of the surviving entity or any parent
thereof) at least sixty percent (60%) of the combined
voting power of the voting securities of Holly, the
Company, the General Partner or the Partnership, as
applicable, or such surviving entity or any parent
thereof outstanding immediately after such merger or
consolidation; or

                    (2) the merger or consolidation is effected to
implement a recapitalization of Holly, the Company, the
General Partner or the Partnership (or similar
transaction) in which no Person is or becomes the
Beneficial Owner, directly, or indirectly, of
securities of Holly, the Company, the General Partner
or the Partnership, as applicable, (not including in
the securities beneficially owned by such Person any
securities acquired directly from Holly, the Company,
the General Partner or the Partnership or their
Affiliates other than in connection with the
acquisition by Holly, the Company, the General Partner
or the Partnership or their Affiliates of a business)
representing more than forty percent (40%) of the
combined voting power of Holly’s, the Company’s, the
General Partner’s or the Partnership’s, as applicable,
then outstanding securities.

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                (D) The holders of the voting securities of Holly, the
Company, the General Partner or the Partnership approve a
plan of complete liquidation or dissolution of Holly, the
Company, the General Partner or the Partnership, as
applicable, or an agreement for the sale or disposition by
Holly, the Company, the General Partner or the Partnership of
all or substantially all of Holly’s, the Company’s, the
General Partner’s or the Partnership’s assets, as applicable,
other than a sale or disposition by Holly, the Company, the
General Partner or the Partnership of all or substantially
all of Holly’s, the Company’s, the General Partner’s or the
Partnership’s assets, as applicable, to an entity at least
sixty percent (60%) of the combined voting power of the
voting securities of which is owned by the direct or indirect
holders of the voting securities of Holly, the Company, the
General Partner or the Partnership, as applicable, in
substantially the same proportions as their ownership of
Holly, the Company, the General Partner or the Partnership,
as applicable, immediately prior to such sale.

          (ii) “Person” shall have the meaning given in section 3(a)(9)
of the Securities Exchange Act of 1934 (the “1934 Act”) as modified
and used in sections 13(d) and 14(d) of the 1934 Act.

          (iii) “Beneficial Owner” shall have the meaning provided in
Rule 13d-3 under the 1934 Act.

          (iv) “New Director” shall mean an individual whose election by
the Holly Board, or nomination for election by holders of the
voting securities of Holly, was approved by a vote of at least
two-thirds (2/3) of the directors then still in office who either
were directors as of the Date of Grant or whose election or
nomination for election was previously so approved or recommended.
However, “New Director” shall not include a director whose initial
assumption of office is in connection with an actual or threatened
election contest, including but not limited to a consent
solicitation relating to the election of directors of Holly.

          (v) “Affiliate” shall have the meaning set forth in Rule 12b-2
promulgated under section 12 of the 1934 Act.

          (vi) “Special Involuntary Termination” shall mean the
occurrence of (A) or (B) below within sixty (60) days prior to, or
at any time after, a “Change in Control” (as defined in Section
4(d)(i)), where is termination of the Employee’s employment with
the Company (including subsidiaries of the Company) by the Company
for any reason other than “Cause” (as defined in Section 4(d)(vii))
and is a resignation by the Employee from employment with the
Company (including subsidiaries of the Company) within ninety (90)
days after an “Adverse Change” (as defined in Section 4(d)(viii))
by the Company (including subsidiaries of the Company) in the terms
of the Employee’s employment.

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          (vii) “Cause” shall mean:

                (A) An act or acts of dishonesty on the part of the
Employee constituting a felony or serious misdemeanor and
resulting or intended to result directly in gain or personal
enrichment at the expense of the Company;

                (B) Gross or willful and wanton negligence in the
performance of the Employee’s material and substantial duties
of employment with the Company; or

                (C) Conviction of a felony involving moral turpitude.

The existence of Cause shall be determined by the Committee,
in its sole and absolute discretion.

          (viii) “Adverse Change” shall mean a change in the city in
which the Employee is required to work regularly, a substantial
increase in travel requirements of employment, a substantial
reduction in duties of the type previously performed by the
Employee, or a significant reduction in compensation or benefits
(other than bonuses and other discretionary items of compensation)
that does not apply generally to executives of the Company or its
successor.

     5. Limitations on Transfer. The Employee agrees that he shall not dispose
of (meaning, without limitation, sell, transfer, pledge, exchange, hypothecate
or otherwise dispose of) prior to the Vesting Date any Restricted Units hereby
acquired. Any attempted disposition of the Restricted Units in violation of
the preceding sentence shall be null and void. Notwithstanding the foregoing,
part or all of the Restricted Units or rights under this Agreement may be
transferred to a spouse pursuant to a domestic relations order issued by a
court of competent jurisdiction; provided, however, that such Restricted Units
shall continue to be held pursuant to Section 2 of this Agreement, and the
transferee under the domestic relations order shall agree that the Restricted
Units so transferred shall continue to be subject to the terms of this
Agreement, including forfeiture in accordance with Sections 4(a) and (b) of
this Agreement.

     6. Nontransferability of Agreement. This Agreement and all rights under
this Agreement shall not be transferable by the Employee during his life other
than by will or pursuant to applicable laws of descent and distribution. Any
rights and privileges of the Employee in connection herewith shall not be
transferred, assigned, pledged or hypothecated by the Employee or by any other
person or persons, in any way, whether by operation of law, or otherwise, and
shall not be subject to execution, attachment, garnishment or similar process.
In the event of any such occurrence, the Restricted Units shall automatically
be forfeited. Notwithstanding the foregoing, all or some of the Restricted
Units or rights under this Agreement may be transferred to a spouse pursuant to
a domestic relations order issued by a court of competent jurisdiction, subject
to the limitations on such transfer described in Section 5.

     7. Adjustment of Restricted Units. The number of Restricted Units granted
to the Employee pursuant to this Agreement shall be adjusted to reflect
distributions of the Partnership

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paid in units, unit splits or other changes in the capital structure of
the Partnership, all in accordance with the Plan. All provisions of this
Agreement shall be applicable to such new or additional or different units or
securities distributed or issued pursuant to the Plan to the same extent that
such provisions are applicable to the units with respect to which they were
distributed or issued. In the event that the outstanding Units (as defined in
the Plan) of the Partnership are exchanged for a different number or kind of
units or other securities, or if additional, new or different units are
distributed with respect to the Units (as defined in the Plan) through merger,
consolidation, or sale of all or substantially all of the assets of the
Partnership, each remaining unit subject to this Agreement shall have
substituted for it a like number and kind of units or shares of new or
replacement securities as determined in the sole discretion of the Committee,
subject to the terms and provisions of the Plan.

     8. Delivery of Vested Units. No Vested Units shall be delivered pursuant
to this Agreement until the approval of any governmental authority required in
connection with this Agreement, or the issuance of Vested Units hereunder, has
been received by the Company. The Committee will delay delivery of Vested
Units until the restrictions of Section 5 lapse.

     9. Securities Act. The Company shall have the right, but not the
obligation, to cause the Restricted Units to be registered under the
appropriate rules and regulations of the Securities and Exchange Commission.
The Company shall not be required to deliver any Vested Units hereunder if, in
the opinion of counsel for the Company, such delivery would violate the
Securities Act of 1933 or any other applicable federal or state securities laws
or regulations.

     10. Federal and State Taxes. The Employee may incur certain liabilities
for Federal, state or local taxes and the Company may be required by law to
withhold such taxes for payment to taxing authorities. If the Employee makes
the election permitted by section 83(b) of the Internal Revenue Code, the taxes
shall be due and payable for the year in which this Agreement is executed. If
the Employee does not make such election, the taxes shall be payable for the
year in which the restrictions lapse pursuant to Section 4. Upon determination
of the year in which such taxes are due and the determination by the Company of
the amount of taxes required to be withheld, if any, the Employee shall either
pay to the Company, in cash or by certified or cashier’s check, an amount equal
to the taxes required to be paid on such transaction, or the Employee shall
authorize the Company to withhold from monies owing by the Company to the
Employee an amount equal to the amount of federal, state or local taxes
required to be withheld. Authorization of the Employee to the Company to
withhold taxes pursuant to this Section 10 shall be in form and content
acceptable to the Committee. An authorization to withhold taxes pursuant to
this provision shall be irrevocable unless and until the tax liability of the
Employee has been fully paid. In the event that the Employee fails to make
arrangements that are acceptable to the Committee for providing to the Company,
at the time or times required, the amounts of federal, state and local taxes
required to be withheld with respect to the Restricted Units granted to the
Employee under this Agreement, the Company shall have the right to purchase at
current market price as determined by the Committee and/or to sell to one or
more third parties in either market or private transactions sufficient Vested
Units to provide the funds needed for the Company to make the required tax
payment or payments.

     11. Definitions; Copy of Plan. To the extent not specifically provided
herein, all terms used in this Agreement shall have the same meanings ascribed
to them in the Plan. By the

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execution of this Agreement, the Employee acknowledges receipt of a copy
of the Plan. If any provision of this Agreement is held to be illegal, invalid
or unenforceable under any applicable law, then such provision will be deemed
to be modified to the minimum extent necessary to render it legal, valid and
enforceable; and if such provision cannot be so modified, then this Agreement
will be construed as if not containing the provision held to be invalid, and
the rights and obligations of the parties will be construed and enforced
accordingly.

     12. Administration. This Agreement shall at all times be subject to the
terms and conditions of the Plan. The Committee shall have sole and complete
discretion with respect to all matters reserved to it by the Plan and decisions
of a majority of the Committee with respect thereto and this Agreement shall be
final and binding upon the Employee and the Company. In the event of any
conflict between the terms and conditions of this Agreement and the Plan, the
provisions of the Plan shall control.

     13. No Right to Continued Employment. This Agreement shall not be
construed to confer upon the Employee any right to continue as an Employee of
the Company and shall not limit the right of the Company, in its sole
discretion, to terminate the service of the Employee at any time.

     14. Governing Law. This Agreement shall be interpreted and administered
under the laws of the State of Texas, without giving effect to any conflict of
laws provisions.

     15. Amendments. This Agreement may be amended only by a written agreement
executed by the Company and the Employee. Any such amendment shall be made
only upon the mutual consent of the parties, which consent (of either party)
may be withheld for any reason.

     16. No Liability for Good Faith Determinations. The General Partner, the
Partnership, the Company, Holly and the members of the Committee, the Board and
the Holly Board shall not be liable for any act, omission or determination
taken or made in good faith with respect to this Agreement or the Restricted
Units granted hereunder.

     17. No Guarantee of Interests. The Board, the Holly Board, the General
Partner, the Partnership, Holly and the Company do not guarantee the Units (as
defined in the Plan) from loss or depreciation.

[REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]

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     IN WITNESS WHEREOF, the Company has caused this Agreement to be executed
by its officer thereunto duly authorized, and the Employee has set his hand as
of the date and year first above written.

	 	 	 
	

	 	HOLLY LOGISTIC SERVICES, L.L.C.
	 
	 	 
	

	 	By:
	

	 	

	 
	 	 
	

	 	

	

	 	Director

8exv10w5

 

Exhibit 10.5

Revolving Loan and Security Agreement

	 	 	 	 	 
	Principal: $5,000,000.00

	 	Loan Date: August 26, 2004
	 	Maturity: February 1,2005

	 	 	 	 	 	 	 
	Borrower:

	 	Desert Capital Reit, Inc.
	 	Lender:
	 	Beresford Bancorporation, Inc.
	

	 	357 Renaissance Drive, Suite A
	 	 	 	600 Main Street
	

	 	Las Vegas, NV 89919
	 	 	 	Britton, SD 57430
	

	 	 	 	 	 	(605) 448-2643

     This Revolving Loan Agreement (“Agreement”) is entered into this date by
and between Desert Capital Reit, Inc., a Nevada Corporation (“Borrower”) and
Beresford Bancorporation, Inc. (“Lender”).

     NOW, THEREFORE, IT IS AGREED AS FOLLOWS:

     Section 1 . Periodic Loans. During the term hereof, Lender hereby agrees
to make periodic loans to the Borrower in an aggregate principal amount at any
one time outstanding, not to exceed Five Million Dollars ($5,000,000.00)
(“Maximum Amount”). During the term hereof, from time to time Borrower may
notify the Lender of its need to borrow funds pursuant to this Agreement.
Within two business days of receipt of such notice from the Borrower seeking to
borrow funds, the Lender shall forward such funds to the Borrower up to, but no
in excess of, the Maximum Amount. This is a revolving loan. The amount repaid
may be reborrowed during the term.

     Section 2 . Periodic Finance Charges. All principal and interest then
outstanding shall bear interest at the floating rate of the 10 year treasury
bill plus 3% per annum.

     Section 3 . Payments. All interest outstanding shall be due and payable
by the Borrower on a monthly basis in arrears. All principal and interest then
outstanding shall be due and payable by the Borrower to the Lender on February
1, 2005. The Borrower may, from time to time, in the Borrower’s discretion,
make one or more periodic payments to the Lender. Such payments shall be
credited to the Borrower’s account on the date that such payment is physically
received by the Lender. Such payments shall be applied first to the interest
outstanding, and then to the principal outstanding.

     Section 4 . Term. This Agreement shall begin this date and shall
terminate on February 1, 2005, unless terminated earlier pursuant to the
default provisions of this Agreement or extended by mutual agreement. Borrower
has option to extend the agreement until February 1, 2006 if there are no
defaults.

     Section 5 . Creation of Security Interest. In order to secure the payment
of the principal and interest now or hereafter owed by the Borrower to the
Lender, the Borrower hereby grants to the Lender a security interest in the
property described below on the terms and conditions set forth in this
Agreement. The Borrower shall execute any financing statements regarding the
Collateral, pursuant to the Uniform Commercial Code, which the Lender

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reasonably requests the Borrower to execute. The Property subject to the
security interest (“Collateral”) is as follows:

125% (One Hundred Twenty Five Percent) of the outstanding balance of the
promissory note shall be secured by mortgages and trust deeds owned by
the Borrower. The trust deeds and the mortgages shall be free and clear
of all encumbrances to the extent of 125% of the outstanding balance.
The Borrower is authorized to substitute mortgages and trust deeds,
providing they are free and clear of all encumbrances and are current in
payment at all times. In the event of default of payments by the
Borrower, the Borrower shall assign all interest in the collateral and
security to the Lender following any applicable notice or cure period for
disposition to fulfill all payments and obligations due and owing. Any
excess monies shall be returned to the Borrower after the payment in full
of principal and interest in the event of nonpayment. In addition,
Lender shall have access to the proceeds of any of the pledged property
in the event there is a sale or disposition of the collateral secured,
unless it is replaced by similar collateral.

Section 6 . Default Provisions. The occurrence of one or more of the
following events shall constitute an event of default:

     6.1 The nonpayment of any principal and/or interest of this loan
when the same shall have become due and payable after a 10 day notice has
been given to Borrower by Lender.

     6.2 The entry of a decree or order by a court having jurisdiction in
the premises adjudging the Borrower a bankrupt or insolvent, or approving
as properly filed a petition seeking reorganization, arrangement,
adjustment or composition of or in respect of the Borrower under the
federal Bankruptcy Act or any other applicable federal or state law, or
appointing a receiver, liquidator, assignee or trustee of the Borrower,
or any substantial part of its property, or ordering the winding up or
liquidation of its affairs, and the continuance of any such decree or
order unstayed and in effect for a period of ninety (90) consecutive
days.

     6.3 The institution by the Borrower of proceedings to be adjudicated
a bankrupt or insolvent, or the consent by it to the institution of
bankruptcy or insolvency proceedings against it, or the filing of any
such petition or to the appointment of a receiver, liquidator, assignee
or trustee of the company, or of any substantial part of its property, or
the making by it of an assignment for the benefit of creditors or the
admission by it in writing of its inability to pay its debts generally as
they become due, or the taking of corporation action by the Borrower in
furtherance of any such action.

     6.4 Default in the obligation of the Borrower for borrowed money,
other than this loan, which shall continue for a period of sixty (60)
days after the expiration of any cure periods under such loan.

     6.5 This Section 6 shall replace the “Default” provision in the
note, and any conflicts before this Section 6 and such “Default” section
shall be governed by this Section 6.

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     Section 7 . Borrower’s Representations and Warranties. Perfection of
Security Interest. Borrower agrees to execute financing statements and to take
whatever other actions are reasonably requested by Lender to perfect and
continue Lender’s security interest in the Collateral. Upon request of Lender,
Borrower will deliver to Lender any and all of the documents evidencing or
constituting the collateral, and Borrower will note Lender’s interest upon any
and all chattel paper if not delivered to Lender for possession by Lender.
This is a continuing Security Agreement and will continue in effect during the
term hereof even though all or any part of the indebtedness is paid in full and
even though for a period of time Borrower may not be indebted to Lender.

     Section 8 . Transactions involving Collateral. Except for inventory sold
or accounts collected in the ordinary course of Borrower’s business, or as
otherwise provided for in this Agreement, Borrower shall not sell, offer to
sell, or otherwise transfer or dispose of the Collateral unless the Collateral
that is sold is replaced by similar Collateral or the funds used to pay the
note. Borrower shall not pledge, mortgage, encumber or otherwise permit the
Collateral to be subject to any lien, security interest, encumbrance, or
charge, other than the security interest provided for in this Agreement,
without prior written consent of lender. This includes security interests even
if junior in right to the security interests granted under this Agreement.
Unless waived by Lender, all proceeds from any disposition of the Collateral
(for whatever reason) shall be held in trust for Lender and shall not be
commingled with any other funds; provided, however, this requirement shall not
constitutive consent by Lender to any sale or other disposition and shall not
apply if the disposed collateral is replaced with similar collateral.

     Section 9 . Title. Borrower represents and warrants to Lender that
Borrower holds good and marketable title to the Collateral, free and clear of
all liens and encumbrances except for the lien of this Agreement. No financing
statement covering any of the Collateral is on file in any public office other
than those which reflect the security interest created by this Agreement or to
which Lender has specifically consented. Borrower shall defend Lender’s rights
in the Collateral against the claims and demands of all other persons.

     Section 10 . Financing Statements. Borrower authorizes Lender to file a
UCC-1 financing statement, or alternatively, a copy of this Agreement to
perfect Lender’s security interest. At Lender’s request, Borrower additionally
agrees to sign all other documents that are necessary to perfect, protect, and
continue Lender’s security interest in the Property. Borrower will pay all
filing fees, title transfer fees, and other fees and costs involved unless
prohibited by law or unless Lender is required by law to pay such fees and
costs. Borrower irrevocably appoints Lender to execute financing statements
and documents of title in Borrower’s name and to execute all documents
necessary to transfer title if there is a default. Lender may file a copy of
this Agreement as a financing statement.

     Section 11 . Attorney’s Fees; Expenses. Borrower agrees to pay upon
demand all reasonable Lender’s costs and expenses, including Lender’s
attorneys’ fees and Lender’s legal expenses, incurred in connection with the
enforcement of this Agreement.

     Section 12 . Governing Law. This Agreement will be governed by, construed
and enforced in accordance with federal law and the laws of the State of South
Dakota.

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     Section 13 . Waive Jury. All parties to this Agreement hereby waive the
right to any jury trial in any action, proceeding, or counterclaim brought by
any party against any other party.

	 	 	 
	Borrower:
	 	 
	 
	 	 
	 
	 	 
	
 

	 	
 
	Authorized signer for Desert Capital
Reit, Inc.

	 	Authorized signer for Desert Capital
Reit, Inc.
	 
	 	 
	Lender:
	 	 
	 
	 	 
	 
	 	 
	
 	 	 
	Authorized signer for Beresford Bancorporation, Inc.

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