Document:

Unassociated Document

    EXHIBIT
      10.36

     

    REAL
      ESTATE CONTRACT

    

    THIS
      CONTRACT IS MADE in triplicate this 1st day of September, 2005, by and between
      Bowlin Travel Centers, Inc. whose address is PO Box 1409, Mesilla Park, NM
      88047, hereinafter called the Seller, and Lazy L, LLC whose address is PO Box
      925, Mesilla Park, NM 88047, hereinafter called the Purchaser. Whenever a
      masculine pronoun is used, it shall also be considered as referring to the
      female gender and plural pronouns, whichever is proper.

    

    1.
      SALE:
      The Seller, in consideration of the promises and agreements herein made by
      the
      Purchaser, agrees to sell and convey to the Purchaser the following described
      real estate, hereinafter called the property, in the County of Luna and State
      of
      New Mexico: See attached Exhibit "A" Exhibit "B" and Exhibit "C" subject to
      the
      Perpetual Outdoor Advertising Easement dated 8-24-2005 and filed of record
      on
      ___________________, Reception
      No. _____________
      Real
      Estate Records, Luna County, New Mexico. Also Grantor reserves all billboard
      signs located upon the above real estate. And further Grantor reserves the
      Cell
      Tower easement and cell tower Access Easement which are recorded in the Office
      of the County Clerk under Reception No. 2003-00983 and 2003-00986 respectively,
      and all rights to the cell tower lease relating thereto. The Seller agrees,
      upon
      completion of all terms and conditions of this contract by the Purchaser, that
      the Purchaser shall then receive the Warranty Deed and related documents placed
      in escrow with this Contract.

     

    2.
      PRICE,
      AND PAYMENT: The purchaser agrees to buy the above-described Property and to
      pay
      Seller therefore the total sum of Eighty Five Thousand and no/l00 Dollars ($85
      000.00), payable as follows: Ten Thousand and no/100 Dollars ($10,000.00),
      cash
      down payment, the receipt of which is hereby acknowledged, and the balance
      of
      Seventy-five thousand and no/100 Dollars ($75, 000.00), payable as
      follows:

     

    The
      balance of $75,000.00 is due and payable in 20 equal quarterly installments
      in
      the amount of $4,586.75 each, including interest at the rate of eight (8)
      percent per annum, commencing on the 1st day of December, 2005 and continuing
      on
      the 1st day of each succeeding quarter thereafter until all principal and
      accrued interest is paid in full.

     

    The
      payments as above provided shall be paid to the escrow agent and continue until
      the entire unpaid balance of the purchase price (exclusive of any prior lien
      or
      obligation being assumed) plus any accrued interest due to the seller is fully
      paid. Said unpaid balance shall bear interest at the rate of eight per centum
      (8
      00%) per annum from the effective date September 1st,
      2005.

    

    APPLICATION
      OF PAYMENTS: Check and initial only one of the following two
      paragraphs.

    

    
      	
              x

              Initials

              MLB

              TJ__

            	(a)	
              Payments,
                excepting prepayments, shall be applied to regularly scheduled
                installments in the order in which the same were due and shall be
                credited
                as though the payments were made on their respective due
                dates.

            

    

    

    
      	
              o

              Initials

              ____

              ____

            	(b)	
              Payments
                shall be applied as of the date of receipt by Escrow Agent first
                to
                accrued interest then to principal balance of this Contract. 

            

    

     

    
      
        

      

    

    
    

    All
      payments shall be assumed to be regular payments, and not prepayments, unless
      otherwise specified by Purchaser in writing at the time of delivering such
      payments to Escrow Agent. Unless otherwise provided, Purchaser may prepay the
      unpaid balance in whole or in part at any time. Any prepayment shall be credited
      first to accrued interest, then to the principal balance of this Contract
      exclusive of assumed liens or obligations, then to assumed liens or obligations
      as described in this paragraph. Notwithstanding any prepayments, Purchaser
      shall
      make the next regularly scheduled payments. Should Purchaser fail to make any
      of
      the payments or perform any other obligations required hereunder, including
      the
      payment of any assumed obligation, and if Seller's attorney makes written demand
      therefore pursuant to Paragraph 5 below, the Purchaser shall pay within the
      time
      allowed the additional sum of $150.00, unless otherwise stated, for Seller's
      attorney's fees.

    The
      following lien(s) or obligation(s) is currently outstanding on the
      property:

     

    
      	Type of Lien or Obligation
              Holder 	
              Loan
                Number

            	
              Recording
                Data: Book &
                Page

            
	 	 	 
	Not applicable	 	 

    

     

    IF
      ANY
      LIEN(S) OR OBLIGATION(S) IS/ARE CURRENTLY OUTSTANDING ON THE PROPERTY, CHECK
      AND
      INITIAL ONLY ONE OF THE FOLLOWING THREE PARAGRAPHS. ONLY THAT PARAGRAPH SHALL
      APPLY.

    

    
      	
              o

              Initials

              ____

              ____

            	(a)	
              Purchaser
                assumes and agrees to pay the above-mentioned prior lien(s) or
                obligation(s) in accordance with its/their terms. Purchaser shall
                make the
                installment payments on the prior lien(s) or obligation(s), together
                with
                installment payments on this Contract, to the Escrow Agent named
                below,
                who will remit the payments to the person or company to whom they
                are
                payable. Purchaser shall advise the Escrow Agent of any change in
                the
                amount of the payment due on any assumed obligation(s). Failure to
                make
                such payments at the time required shall be a default under this
                Contract.
                At such time as the unpaid balance of the purchase price due the
                seller is
                fully paid, this Escrow shall terminate and the purchaser shall thereafter
                make the installment payments on said prior lien(s) or obligation(s)
                directly to the person(s) or company(ies) to whom they are payable.
                

            

    

    
      	
              o

              Initials

              ____

              ____

            	(b)	
              Purchaser
                assumes and agrees to pay the above-mentioned prior lien(s) or
                obligation(s) in accordance with its/their terms. Purchaser shall
                make the
                installment payments on the prior lien(s) or obligation(s) directly
                to the
                person or company to whom payable. Failure to make such payments
                at the
                time required shall be a default under this
                Contract.

            

    

    
      	
              o

              Initials

              ____

              ____

            	(c)	
              Purchaser
                does not assume or agree to pay the above described lien(s) or
                obligation(s). All payments due on such lien(s) or obligation(s)
                shall be
                remitted by the Escrow Agent to the person or company to whom they
                are
                payable out of the payments made by Purchaser. If the payments
                due
                from Purchaser are insufficient to satisfy the amounts due to be
                made on
                the above-described lien(s) or obligation(s), Seller shall pay Escrow
                Agent such additional funds as are necessary to keep such lien(s)
                or
                obligation(s) current. 

            

    

    Should
      Purchaser fail to pay any such installment payments prior to the same becoming
      delinquent, Seller may pay the same for the protection of the Property and
      his
      interest therein. Payment by Seller shall not be deemed a waiver of Purchaser's
      default, and the amount so paid by Seller shall be immediately due and payable
      to Seller and shall bear interest until paid at the same rate as provided in
      Paragraph 2 above.

    3. 
      PURCHASER TO PAY INSURANCE, TAXES AND PAVING LIENS, AND SELLER'S
      RIGHTS:

    (a)
       Insurance. The Purchaser agrees to keep the insurable
      improvements upon the Property insured against the hazards covered by fire
      and
      extended coverage insurance, with an insurance company satisfactory to Seller
      in
      the sum of not less than $      , for the
      benefit of
      Purchaser and Seller as their interests may appear, and furnish a copy of the
      insurance policy or certificate of the insurance policy to Seller annually
      prior
      to expiration of existing insurance.

    (b)
      Taxes. Unless otherwise stated herein, the property taxes for
      the current year have been divided and prorated between Seller and Purchaser
      as
      of the date of this Contract, and the Purchaser is responsible for and will
      pay
      the taxes and assessments of every kind hereafter billed. Purchaser will have
      the Property assessed for taxation in Purchaser's name. Upon request by Seller,
      Purchaser will send copies of the paid tax receipts each year to
      Seller.

    (c)
      Paving and Other Improvement Liens and Standby Charges. Unless
      otherwise stated herein, the Purchaser assumes any paving and/or other
      improvement lien and/or standby charges now assessed against the Property and
      agrees to pay all installments of principal and interest thereon that hereafter
      become due.

    (d)
Seller's
      Rights. Should the Purchaser fail to pay insurance premiums, taxes and
      assessments, paving liens, improvement liens or standby charges, or other such
      matters prior to the same becoming delinquent, Seller may pay the same (but
      is
      not obligated to do so) for protection of the Property and his interest therein.
      Payment of such charges shall not be deemed a waiver of any default of Purchaser
      for failure to pay such charges, and such amounts as have been so paid shall
      be
      immediately due and payable to Seller, and shall bear interest until paid at
      the
      same rate as provided in Paragraph 2 above.

    4.
       PURCHASER'S RIGHT, SELLER'S RETENTION OF
      INTEREST:

    Purchaser
      shall be entitled to take possession of the Property and retain possession
      unless and until Purchaser's interests under this Contract shall be terminated
      by Seller as provided in Paragraph 5 below. Legal title to the Property shall
      remain in Seller's name until this contract has been fully performed upon the
      part of Purchaser and the Warranty Deed delivered as specified.

    5.
       SELLER'S RIGHTS IF PURCHASER DEFAULTS:

    (a)
      Default Notice. Time is of the essence in this contract,
      meaning that the parties shall perform their respective obligations within
      the
      times stated. If Purchaser fails to make any of the payments required in
      Paragraph 2, herein, at the times specified, or fails or refuses to maintain
      insurance or to pay taxes, assessments or other charges against the Property,
      or
      fails or refuses to repay any sums advanced by the Seller under the provisions
      of Paragraph 3 above, the Seller may make written demand upon the Purchaser,
      with such notice to specify the default and the curative action required, at
      his
      address as follows: PO Box 925 Mesilla Park, NM 88047 or at such other address
      that Purchaser may designate by a notarized statement delivered to the Escrow
      Agent, which change of address will be effective on the seventh (7th) calendar
      day after receipt by the Escrow Agent. 

    (b)
      Manner of Giving Default Notice. Notice in writing shall be
      given by certified mail, return receipt requested, addressed to the Purchaser
      at
      the effective address for Purchaser as provided in Paragraph 5(a), with a copy
      to Escrow Agent. Purchaser expressly acknowledges that notice to him by mail,
      in
      the manner above specified, is sufficient for all purposes, regardless of
      whether he actually receives such notice.

    (c)
      Purchaser's Failure to Cure Default Results in Termination of Contract
      or Acceleration of Entire Unpaid Balance.

    If
      the
      Purchaser fails or neglects to cure any default within Thirty (30) days after
      the date Seller's default notice is mailed, then the Seller may, at his option
      either declare the whole amount remaining unpaid to be then due and proceed
      to
      enforce payment of the entire remaining unpaid balance, plus any accrued
      interest, together with reasonable attorney's fees, or he may terminate
      Purchaser's rights to the Property and retain all sums paid as liquidated
      damages to that date for the use of the property, and all rights of Purchaser
      in
      the Property shall thereupon end. If the final day for curing the default shall
      fall on a Saturday, Sunday, or non-business day of the Escrow Agent, then the
      period for curing the default shall extend to the close of business on the
      next
      regular business day of the Escrow Agent.

    Acceptance
      by Escrow Agent of any payment tendered shall not be deemed a waiver by Seller,
      or extension of the time for cure, of any other default under this Contract.
      In
      the event of termination, Purchaser hereby waives any and all rights and claims
      for reimbursement for improvements he may have made upon the
      Property.

    (d)
      Affidavit of Uncured Default and Election of Termination. A
      recordable affidavit made by Seller, his agent, or Escrow Agent, identifying
      the
      parties, stating the legal description of the Property or the recording date
      of
      this Contract and stating the date that notice was duly given as provided above,
      that the specified default has not been cured within the time allowed and that
      the Seller has elected to terminate, and delivered to the Escrow Agent shall
      be
      conclusive proof for the Escrow Agent and any subsequent Purchaser or
      encumbrancer for value of such uncured default and election of
      termination.

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    (e)
      Purchaser Becomes Tenant. Upon termination, Purchaser has no
      continuing right to possession. If Purchaser remains in possession of the
      Property after this Contract has been terminated as above provided, Purchaser
      shall then become a tenant at will, for a rental amount equivalent to the
      installment payment theretofore required as monthly payments under this
      Contract, with the first such rental payment due immediately, in advance, and
      such tenancy being subject to termination by either party upon thirty (30)
      days
      separate prior written notice. Seller's acceptance of such rental payment(s)
      shall not be deemed as any waiver of his rights, nor shall it constitute any
      manner of estoppel.

    (f)
      Legal Right to Evict Purchaser. Forcible entry and detainer
      proceedings, in addition to any other appropriate legal remedies, may be
      utilized by the Seller if necessary to obtain possession of the Property
      following termination of this Contract and termination of Purchaser's continued
      tenancy thereafter. If such proceedings are filed, Purchaser shall be liable
      for
      Seller's reasonable attorney's fees plus the legal costs of such
      action.

    6.
       TITLE INSURANCE OR ABSTRACT:

    Unless
      otherwise provided herein, Seller is delivering a Contract Purchaser's Title
      Insurance Policy to Purchaser or Abstract of Title to Escrow Agent at the time
      this Contract is made, showing merchantable title to the Property as of the
      date
      of this Contract, subject to the matters referred to in this Contract and Seller
      is not obligated to provide any other or further evidence of title.

    7. 
      PURCHASER'S RIGHT TO SELL: 

    
      	 	
              (A)

            	
              First
                Provision:

            

    

    Purchaser
      shall be entitled to sell, assign, convey or encumber his entire interest in
      this Contract (but not a portion thereof) and the Property to any person or
      entity; hereinafter called Assignee, and may retain a security interest therein,
      without obtaining the consent or approval of the Seller. The Purchaser shall
      not, however, be released from his obligations hereunder by any such sale,
      assignment, conveyance or encumbrance. In the event Purchaser does sell, assign,
      convey or encumber said interest, then Purchaser, his Assignee, or any
      subsequent Assignee shall deliver a copy of such written sale, assignment,
      conveyance or encumbrance document to Escrow Agent.

    Such
      sale, assignment, conveyance or encumbrance document shall specify the address
      of the Assignee and upon receipt of such document by the Escrow Agent, Seller
      shall only be required to send notice of default to the most recent Assignee
      who
      has given notice of such sale or assignment and his address to the Escrow Agent
      as provided herein. If such document is not received by the Escrow Agent, any
      notice of default need be sent only to the last person or entity and address
      for
      which written notice has been provided to the Escrow Agent as provided
      herein.

    
      	 	
              (B)

            	
              Special
                Alternative Provision:

            

    

     

    
      CAUTION:
        THE FOLLOWING PROVISION SEVERELY RESTRICTS THE RIGHT OF PURCHASER TO SELL,
        ASSIGN, CONVEY OR ENCUMBER THIS CONTRACT AND THE PROPERTY. If the parties
        wish
        to invoke this provision, they should check the box as indicated and each
        initial as provided. If the Special Alternative Provision is elected, the
        First
        Provision does not apply.

    

    

    
      	
              o

              Initials

              ____

              ____

            	 	
              Purchaser
                shall not be entitled, directly or indirectly, to sell, assign, convey
                or
                encumber all or any portion of the Purchaser's interest in this Contract
                or in the Property without first obtaining the written consent of
                Seller,
                and Seller shall not be under any obligation of any kind to give
                such
                consent. In the event that Purchaser shall, directly or indirectly,
                sell,
                assign, convey or encumber or contract to sell, assign, convey or
                encumber, directly or indirectly, all or any portion of the Purchaser's
                interest this Contract or in the Property without the consent of
                Seller,
                it shall be an event of default subject to the rights of Seller in
                Paragraph 5, herein.

            

    

     

    
      Caution:
        If the Property is subject to any prior mortgage(s), Deed(s) of Trust or
        Real
        Estate Contract(s), then the provisions thereof should be examined carefully
        for
        any conflict with the above clause.

       

      8.
         BINDING EFFECT:

    

    This
      Contract shall extend to and be obligatory upon the heirs, executors,
      administrators, personal representatives, successors and assigns of the parties
      to this Contract.

    9. 
      APPOINTMENT OF AND INSTRUCTIONS TO ESCROW
      AGENT:

    The
      parties hereby appoint as Escrow Agent: 

    Mountain
      States Escrow, Inc. 

    124
      Wyatt
      Dr./PO Box 2224

    Las
      Cruces, NM 88004

    

    The
      following papers are herewith placed in escrow:

    
      	 	
              1.

            	
              Signed
                copy of this Contract. 

            

    

    
      	 	
              2.

            	
              Original
                Warranty Deed signed by Seller. 

            

    

    
      	 	
              3.

            	
              Original
                Special Warranty Deed signed by Purchaser.

            

    

    
      	 	
              4.

            	
              Notice
                of escrow sales agreement.

            

    

    Add
      following information, if applicable: 

    
      	
            	 	
              Name
                and address of mortgagee:

              n/a

              
                

              

            

    

    
      	
            	Loan
              No.	
              n/a

              
                

              

            

    

    
      
        	
              	 	
                Name
                  and address of Escrow Agent under any other contract on the Property:
                  

                n/a

                
                  

                

              

      

    

    
      	
            	(a)	
              The
                fee(s) of the Escrow Agent shall be paid as follows:  by
                the purchaser  

            

    

    If
      such
      fee(s) is/are paid wholly or in part by Purchaser, such amount shall be in
      addition to the amounts due from Purchaser as provided in Paragraph 2, herein.
      The Escrow Agent is instructed to accept all monies paid in accordance with
      this
      Contract and remit the money received (less applicable escrow fees) as
      follows:  Mail
      proceeds to seller 

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    
      	 	
              (b)

            	
              All
                payments shall be deemed provisionally accepted when tendered, subject
                to
                determination by the Escrow Agent of the correct amount and its
                timeliness.

            

    

    
      	 	
              (c)

            	
              Upon
                full payment of all amounts due and owing to the Seller under this
                Contract by the Purchaser, the Escrow Agent is directed to release
                and
                deliver the escrow documents to the
                Purchaser.

            

    

    
      	 	
              (d)

            	
              If
                the Seller or his agent delivers an Affidavit of Uncured Default
                and
                Election of Termination (as described in Paragraph 5 above) to the
                Escrow
                Agent, then the Escrow Agent shall release and deliver the escrow
                documents to the Seller. The Escrow Agent shall be entitled to rely
                on
                such Affidavit as conclusive proof of
                termination.

            

    

    
      	 	
              (e)

            	
              The
                Escrow Agent is instructed that after each and every written demand
                is
                mailed to the Purchaser, pursuant to Paragraph 5 above, and a copy
                thereof
                is furnished to the Escrow Agent, not to accept less than the full
                amount
                of the sum stated as due in the written demand, plus the additional
                $150.00, unless otherwise stated, for Seller's attorney's
                fees.

            

    

    
      	 	
              (f)

            	
              The
                Escrow Agent is entitled to charge its standard fees current as of
                the
                date the service is rendered, but all changes shall become effective
                only
                after sixty (60) days written notice to the party or parties paying
                the
                fee of the Escrow Agent.

            

    

    
      	 	
              (g)

            	
              Seller
                and Purchaser will each indemnify and save harmless the Escrow Agent
                against all costs, damages, attorney's fees, expenses and liabilities,
                which it may incur or sustain in connection with this Contract, including
                any interpleader or declaratory judgment action brought by Escrow
                Agent,
                but excepting failure of the Escrow Agent to comply with this Paragraph
                9.

            

    

    
      	 	
              (h)

            	
              The
                Escrow Agent shall have the right to resign as Escrow Agent under
                this
                Contract by giving the parties sixty (60) days written notice of
                intent to
                resign. The parties shall thereupon mutually select a successor Escrow
                Agent and give written notice to the Escrow Agent of such selection.
                If
                the parties fail, for any reason, to mutually select a successor
                Escrow
                Agent and give Escrow Agent written notice of such selection within
                sixty
                (60) days after mailing by the Escrow Agent of notice of intent to
                resign
                as aforesaid, then the Escrow Agent may select the successor Escrow
                Agent.
                Delivery by the Escrow Agent to the successor Escrow Agent of all
                documents and funds, after deducting therefrom its charges and expenses,
                shall relieve the Escrow Agent of all liability and responsibility
                for
                acts occurring after the date of the assignment in connection with
                this
                Contract.

            

    

    10.
      SEVERABILITY CLAUSE: The invalidity or unenforceability of any
      provision of this Contract shall not affect the validity or enforceability
      of
      the remainder of this Contract.

    The
      parties have signed and acknowledged this Contract effective as of the date
      stated at the beginning of this Contract.

    
       

      
        CAUTION:
          YOU SHOULD READ THIS ENTIRE CONTRACT BEFORE SIGNING. IF YOU DO NOT UNDERSTAND
          THIS CONTRACT, YOU SHOULD CONSULT YOUR ATTORNEY.

      

       

    

    
      	SELLER	 	 	PURCHASER
	 	 	 	 
	/s/ Michael
              L. Bowlin	 	 	/s/ Teak
              Johnson
	
              

            	 	 	
              

            
	Bowlin
              Travel Centers, Inc. by:	 	 	Lazy
              L,
              LLC

       

    ACKNOWLEDGMENT
      FOR NATURAL PERSONS

     

    
      
        	STATE
                OF NEW MEXICO	)	 	 
	 	)	ss.	 
	COUNTY OF Dona
                Ana 	)	 	 
	 	 	 	 
	
                This
                  instrument was acknowledged before me on August 25, 2005 by
                  Lazy L, LLC.

              
	 	 	 	 
	 	 	 	/s/ Sherry
                Wright
	
              	 	 	
                

              
	
                My
                  commission expires:    7/5/2009 

              	 	 	NOTARY
                PUBLIC

      

    ACKNOWLEDGEMENT
      FOR CORPORATION 

     

    
      
        
          	STATE
                  OF NEW MEXICO	)	 	 
	 	)	ss.	 
	COUNTY OF Bernalillo 	)	 	 
	 	 	 	 
	
                  This
                    instrument was acknowledged before me on
                    August 24, 2005 by
                    Michael L. Bowlin, President/CEO, Bowlin Travel Centers, Inc.
                    a Nevada
                    corporation.

                
	 	 	 	 
	 	 	 	/s/ Heather
                  L. Nutter
	
                	 	 	
                  

                
	
                  My
                    commission expires:    10/25/2008

                	 	 	NOTARY
                  PUBLIC

        

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          
EXHIBIT
          "A"

      

    

    

    That
      PART
      OF The East Half of the Northwest Quarter (El/2NW1/4) of Section Thirty-two
      (32), Township Twenty-three (23) South, Range Nine (9) West, N.M.P.M., Luna
      County, New Mexico, lying south of the Interstate 10 Frontage Road R.O.W. and
      is
      further described as follows; COMMENCING at the West Quarter (W1/4) of said
      Section 32; thence on an assumed bearing of N.89°56'06"E., a distance of 1327.60
      feet to the NEW POINT BEGINNING also being the SW corner of this tract; Thence
      N.0°07'43"E., along the west line of said El/2W1/4, a distance of 1428.37 feet
      to a point on the south boundary of Interstate 10 Frontage Road R.O.W. line;
      Thence N.81°41 '25"E., along said south boundary of I-10 Frontage Road, a
      distance of 1340.79 feet to a point; Thence S.89°56 '06"W., a distance of
      1026.29 feet to a point; Thence S.0°07'43"W., a distance of 400.00 feet to a
      point on the south line of said NW1/4 also being in the center line of Ash
      Street; Thence S.89°56'06W., along said south boundary line of NW1/4, a distance
      of 300.00 feet to the point of beginning. This tract contains 36.993 acres,
      more
      or less and is subject to a 50 foot wide road adjoining the east boundary of
      this tract (no record of easement and a road easement for Ash Street adjoining
      the south boundary of this tract as shown on adjoining plat. 

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        
EXHIBIT
        "B"

    

     

    That
      part
      of the West Half of the Northwest Quarter (W1/2NW1/4) of Section Thirty-two
      (32), Township Twenty-three (23) South, Range Nine (9) West, N.M.P.M., Luna
      County, New Mexico, being more particularly described as follows; Commencing
      at
      the W1/4 corner of said Section 32, a point in County Road C-061 R.O.W.; Thence
      N.0°09'31"E., along the west line of said Section 32, a distance of 1024.91
      feet to the NEW POINT OF BEGINNING, being the SW corner of this tract; Thence
      continuing N.0°09'31"E., along the West line of said Section 32, a distance of
      210.19 feet to the NW corner of this tract; Thence N.81°38'32"E., along the
      south R.O.W. line of the I-10 Frontage Road, a distance of 504.46 fee to a
      Hwy
      R.O.W. monument; Thence N. 81°41' 42"E., continuing along said south R.O.W. line
      a distance of 800.00 feet to a Hwy. R.O.W. monument; Thence N.81°41'25"E.,
      continuing along said south R.O.W. line, a distance of 37.09 feet to the NE
      corner of this tract; Thence S.0°07'43"W., along the east line of said
      W1/2NW1/4, a distance of 403.59 feet to the SE corner of this tract; Thence
      S.89°57'02"W., a distance of 1327.09 feet to the SW corner of this tract;

    

    This
      tract contains 9.358 acres more or less, and is subject to a 50 foot wide
      easement for County Road C-06l, adjoining the west boundary of this
      tract.

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        
EXHIBIT
        "C"

    

    

    That
      part
      of Lot Six (6) of the Lester and Perry Tract, lying south of the I-10 Frontage
      Road right-of-way, in the Northeast Quarter (NE1/4) of Section Thirty-two (32),
      Township Twenty-three (23) South, Range Nine (9) West, N.M.P.M., Luna County,
      New Mexico, being further described as follows: Commencing at the Northeast
      corner of said Section 32, monumented with a 2" 'T' rail; Thence on an assumed
      bearing of S.0°09'36"W., along the east boundary of said Section 32, a distance
      of 1324.93 feet to a point; Thence N.89°58'22"W., along the south boundary of
      Lot 7 of said Lester and Perry tracts, a distance of 665.30 to the SE corner
      of
      said lot 6 and POINT OF BEGINNING; Thence continuing N.89°58'22"W., a distance
      of 663.77 feet to the SW corner of said Lot 6 and this tract; Thence
      N.0°00'09"E., along the wet boundary of said Lot 6, a distance of 489.02 feet
      to the NW corner of this tract also being a point on the south I-I0
      Frontage Road Right-of-Way; Thence N.81°40'18"E., along the south I-I0 Frontage
      Road right-of-way, a distance of 673.10 feet to the NE corner of this tract;
      Thence S.0°13'15"W., along the east boundary of said Lot 6, a distance of 586.83
      feet to the point of beginning. This tract contains 8.209 acres, more or less,
      and is subject to easements, reservations and restrictions of
      record.Unassociated Document

    EXHIBIT
      10.37

     

    PROMISSORY
      NOTE

     

    
      	$80.000.00	
              Benson,
                Arizona

            	
              Date:
October
                12, 2005

            

    

     

    FOR
      VALUE
      RECEIVED,

    DEVIN
      FENN, a married man, dba D. FENN ENTERPRISES, INC., an Arizona
      corporation

    

    PROMISE
      TO PAY TO

    BOWLIN
      TRAVEL CENTERS, INC., a Nevada corporation

    

    OR
      ORDER,
      AT   Pioneer Title Agency, Inc., an Arizona
      corporation

    

    THE
      SUM
      OF $Eighty Thousand Dollars And No
      Cents*********************************************

    

    PAYABLE:

     

    Payable
      in monthly installments of $1,622.11 or more on or before the 21st day of every
      month, beginning November 21, 2005 (30 days from close of escrow), with interest
      on all unpaid principal at the rate of 8.00% per annum from October 21, 2005
      (close of escrow), payable monthly, the interest to be first deducted from
      the
      regular monthly installments and the balance to be applied upon the
      principal.

    

    A
      late
      charge of $100.00 shall be due in addition to any payment not received by
      Pioneer Title Agency, Inc. within 5 days after payment due date. In the event
      the late charge does not accompany a late payment then said late charge shall
      accrue and be due and payable in addition to the unpaid principal and any
      accrued interest and/or fees.

    

    In
      addition to the late charge provided for herein, if payments are at least 30
      days past due then the principal balance shall bear interest at a default rate
      of 5% over the interest rate of the carry back as stated herein. Said default
      rate shall begin on the 31st day following the due date of the payments until
      payments are brought current. It is further agreed that the Default Interest
      Penalty is only applicable in the event of a declared default, i.e.,
      foreclosure/forfeiture proceeding initiated by Beneficiary. Said default
      interest penalty to be paid at the time of reinstatement.

    

    In
      the
      event the undersigned convey(s) title to the property which is the security
      for
      this note, or conveys title to any portion thereof or interest therein; or
      in
      the event title to the subject property, or any portion thereof or interest
      therein, is vested in any person or entity other than the undersigned without
      the written consent of the holder of this note, the entire unpaid principal
      and
      accrued interest shall be immediately due and payable.

    

    Partial
      Release provision shall be on an acre by acre basis contingent upon
      Purchaser/Trustor reducing the principal balance due by an amount equal to
      125%
      of the per acre value, the down payment amount not withstanding. The per acre
      amount shall be equal to $80,000.00 divided by the total acreage amount as
      per
      survey.

    

    Should
      default be made in payment of any installment when due, the whole sum of
      principal and interest shall become immediately due at the option of the holder
      of this Note.

    

    Principal
      and interest payable in lawful money of the United States.

    

    Should
      suit be brought to recover on this Note, I/we promise to pay as attorney's
      fees
      a reasonable amount additional to the amount found due hereunder.

    

    The
      makers and endorsers hereof severally waive diligence, demand, presentment
      for
      payment and protest, and consent to the extension of time of payment of this
      Note without notice.

    

    This
      Note
      is secured by a Deed of Trust upon real property.

     

    

    
      
        	ACCEPTED
                AND APPROVED 	 	 	APPROVED
                AS TO FORM AND CONTENT:
	 	 	 	 
	
                D. FENN ENTERPRISES,
                  INC., an
                  Arizona

                Corporation

              	 	 	
                BOWLIN TRAVEL CENTERS,
                  INC., a
                  Nevada

                Corporation

              
	 	 	 	 
	/s/ Devin
                W. Fenn	 	 	/s/ William
                J. McCabe
	
                

              	 	 	
                

              
	DEVIN
                W. FENN, President/Treasurer	 	 	
                W.
                  J. McCABE, Senior Vice President/Secretary-

                Treasurer

              

      

    DO
      NOT
      DESTROY THIS NOTE

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    DEED
      OF TRUST AND ASSIGNMENT OF RENTS 

    

    Date:
      October
      12, 2005 

    

    TRUSTOR:
      

    DEVIN
      FENN, a married man, dba D. FENN ENTERPRISES, INC., an Arizona
      corporation

     

    Whose
      mailing address is P.O. BOX 1980, BENSON, AZ 85602

    

    TRUSTEE:
      

    Pioneer
      Title Agency, Inc., an Arizona corporation

     

    Whose
      mailing address is P.O. Box 1900 Sierra Vista, Arizona 85636-1900

    

    BENEFICIARY:
      

    BOWLIN
      TRAVEL CENTERS, INC., a Nevada corporation 

    

    Whose
      mailing address is P. O. BOX 1409, MESILLA PARK, NM
      88047

    

    Property
      situated in the County of Cochise, State of Arizona, as described as
      follows:

    

    Lots
      15
      through 26, inclusive, and Lot 29, P.I.C. BENSON ACRES, according to File Map
      No.: 615, records of Cochise County, Arizona and subject to Perpetual Outdoor
      Advertising Sign Easement.

    

    See
      Exhibit “A” for Partial Release Provisions attached hereto and made a part
      hereof.

    

    Together
      with all buildings, improvements and fixtures thereon, excluding any billboard
      sign structures.

    Street
      address if any, or identifiable location of this property:

    

    VACANT
      LAND - P. I. C. BENSON, BENSON, AZ 85602

    

    THIS
      DEED
      OF TRUST, made on the above date by, between and among the TRUSTOR, TRUSTEE
      and
      BENEFICIARY above named.

    

    WITNESSETH:
      That Trustor hereby irrevocably grants, conveys, transfers and assigns to the
      Trustee in Trust, with Power of Sale, the above described real property (the
      Trust Property), together with leases, rents, issues, profits, or income
      therefrom (all of which are hereinafter called “property
      income”):
      SUBJECT, however, to the right, power and authority hereinafter given to and
      conferred upon Beneficiary to collect and apply such property income:

    

    SUBJECT
      TO: Current taxes and other assessments, reservations in patents and all
      easements, rights of way, encumbrances, liens, covenants, conditions,
      restrictions, obligations, and liabilities as may appear of record.

    

    FOR
      THE
      PURPOSE OF SECURING:

    
      	A.	
              Payment
                of the indebtedness in the principal sum of $80,000.00 evidenced
                by a
                Promissory Note or Notes of even date herewith, and any extension
                or
                renewal thereof, executed by Trustor in favor of Beneficiary, or
                order.

            

    

    
      	B.	
              Payment
                of additional sums and interest thereon which may hereafter be loaned
                to
                Trustor, or his successors
                or assigns, when evidenced by a Promissory Note or Notes reciting
                that
                they are secured by a Deed of
                Trust.

            

    

    
      	C.	
              Performance
                of each agreement of Trustor herein
                contained.

            

    

    
      	D.	
              Due
                on Sale:
                In
                the event Trustor conveys title to the subject property, or conveys
                title
                to any portion thereof or interest therein, or in the event title
                to this
                property, or any portion thereof or interest therein, is vested in
                any
                person or entity other than the Trustor herein without the written
                consent
                of Beneficiary, all sums secured hereby shall become due and payable
                without regard to the adequacy or inadequacy of the security or solvency
                or insolvency or Trustor.

            

    

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    TO
      PROTECT THE SECURITY OF THIS DEED OF TRUST, TRUSTOR
      AGREES:

    1.
      To
      keep said property in good condition and repair; not to remove or demolish
      any
      building thereon; to complete or restore promptly and in good and workmanlike
      manner any building which may be constructed, damaged, or destroyed thereon,
      and
      to pay when due all claims for labor performed and materials furnished therefor;
      to comply with all laws affecting said property or requiring any alterations
      or
      improvements to be made thereon; not to commit or permit waste thereof; not
      to
      commit, suffer, or permit any act upon said property in violations of law;
      and
      do all other acts which from the character or use of said property may be
      reasonably necessary, the specific enumerations herein not excluding the
      general. 

    2.
      To
      provide, maintain, and deliver to Beneficiary fire insurance satisfactory to
      and
      with loss payable to Beneficiary. The amount collected under any fire or other
      insurance policy may be applied by Beneficiary upon any indebtedness secured
      hereby and in such order as Beneficiary may determine, or at option of
      Beneficiary the entire amount so collected or any part thereof may be released
      to Trustor. Such application or release shall not cure or waive any default
      or
      notice of Trustee's sale hereunder or invalidate any act done pursuant to such
      notice.

    3.
      To
      appear in and defend any action or proceeding purporting to affect the security
      hereof or the rights or powers of Beneficiary or Trustee; and to pay all costs
      and expenses of Beneficiary and Trustee, including cost of evidence of title
      and
      attorney's fees in a reasonable sum, in any such action or proceeding in which
      Beneficiary or Trustee may appear or be named, and in any suit brought by
      Beneficiary or Trustee to foreclose this Deed of Trust.

    4.
      To
      pay, before delinquent, all taxes and assessments affecting said property;
      when
      due, all encumbrances, charges, and liens, with interest, on said property
      or
      any part thereof, which appear to be prior or superior hereto; all costs, fees,
      and expenses of this Trust, including, without limiting the generality of the
      foregoing, the fees of Trustee for issuance of any Deed of Partial Release
      and
      Partial Reconveyance or Deed of Release and full Reconveyance, and all lawful
      charges, costs, and expenses in the event of reinstatement of, following default
      in, this Deed of Trust or the obligations secured hereby. 

    Should
      Trustor fail to make any payment or to do any act as herein provided, then
      Beneficiary or Trustee, but without obligation so to do and without notice
      to or
      demand upon Trustor and without releasing Trustor from any obligation hereof,
      may make or do the same in such manner and to such extent as either may deem
      necessary to protect the security hereof. Beneficiary or Trustee being
      authorized to enter upon said property for such purposes; appear in and defend
      any action or proceeding purporting to affect the security hereof or the rights
      or powers of Beneficiary or Trustee; pay, purchase, contest, or compromise
      any
      encumbrance, charge, or lien which in the judgment of either appears to be
      prior
      or superior hereto; and, in exercising any such powers, pay necessary expenses,
      employ counsel, and pay his reasonable fees.

    5.
      To pay
      immediately and without demand all sums expended by Beneficiary or Trustee
      pursuant to the provisions hereof, together with interest from date of
      expenditure at the same rate as is provided for in the note or notes secured
      by
      this Deed of Trust or at the legal rate if it secures a contract or contracts
      other than a promissory note or notes. Any amounts so paid by Beneficiary or
      Trustee shall become a part of the debt secured by this Deed of Trust and a
      lien
      on said premises or immediately due and payable at option of Beneficiary or
      Trustee.

    

    IT
      IS MUTUALLY AGREED: 

    6.
      That
      any award of damages in connection with any condemnation or any such taking,
      or
      for injury to the property by reason of public use, or for damages for private
      trespass or injury thereto, is assigned and shall be paid to Beneficiary as
      further security for all obligations secured hereby (reserving unto the Trustor,
      however, the right to sue therefor and the ownership thereof subject to this
      Deed of Trust), and upon receipt of such moneys Beneficiary may hold the same
      as
      such further security, or apply or release the same in the same manner and
      with
      the same effect as above provided for disposition of proceeds of fire or other
      insurance.

    7.
      That
      time is of the essence of this Deed of Trust, and that by accepting payment
      of
      any sum secured hereby after its due date, Beneficiary does not waive his right
      either to require prompt payment when due of all other sums so secured or to
      declare default for failure so to pay.

    8.
      That
      at any time or from time to time, and without notice, upon written request
      of
      Beneficiary and presentation of this Deed of Trust and said note(s) for
      endorsement, and without liability therefor, and without affecting the personal
      liability of any person for payment of the indebtedness secured hereby, and
      without affecting the security hereof for the full amount secured hereby on
      all
      property remaining subject hereto, and without the necessity that any sum
      representing the value or any portion thereof of the property affected by the
      Trustee’s action be credited on the indebtedness, the Trustee may: (a) release
      and reconvey all or any part of said property; (b) consent to the making and
      recording, or either, of any map or plat of the property or any part thereof;
      (c) join in granting any easement thereon; (d) join in or consent to any
      extension agreement or any agreement subordinating the lien, encumbrance, or
      charge hereof.

    9.
      That
      upon written request of Beneficiary stating that all sums secured hereby have
      been paid, and upon surrender of the Deed of Trust and said note(s) to Trustee
      for cancellation, upon payment of its fees, Trustee shall release and reconvey,
      without covenant or warranty, express or implied, the property then held
      hereunder. The recitals in such reconveyance of any matters or facts shall
      be
      conclusive proof of the truthfulness thereof. The grantee in such reconveyance
      may be described as “the person
      or
      persons legally entitled thereto.”

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    10.
      That
      as additional security, Trustor hereby gives to and confers upon Beneficiary
      the
      right, power, and authority, during the continuance of this Trust, to collect
      the property income, reserving to Trustor the right, prior to any default by
      Trustor in payment of any indebtedness secured hereby or in performance of
      any
      agreement hereunder, to collect and retain such property income as it becomes
      due and payable. Upon any such default, Beneficiary may at any time, without
      notice, either in person, by agent, or by a receiver to be appointed by a court,
      and without regard to the adequacy of any security for the indebtedness hereby
      secured, enter upon and take possession of said property or any part thereof,
      in
      his own name sue for or otherwise collect such property income, including that
      past due and unpaid, and apply the same, less costs and expenses of operation
      and collection, including reasonable attorney's fees, upon any indebtedness
      secured hereby, and in such order as Beneficiary may determine. The entering
      upon and taking possession of said property, the collection of such property
      income, and the application thereof as aforesaid, shall not cure or waive any
      default or notice of Trustee's sale hereunder or invalidate any act done
      pursuant to such notice.

    11.
      That
      upon default by Trustor in the payment of any indebtedness secured hereby or
      in
      performance of any agreement hereunder, Beneficiary may declare all sums secured
      hereby immediately due and payable by delivery to Trustee of written notice
      thereof, setting forth the nature thereof, and of election to cause to be sold
      said property under this Deed of Trust. Beneficiary also shall deposit with
      Trustee this Deed of Trust, said note(s), and all documents evidencing
      expenditures secured hereby.

    Trustee
      shall record and give notice of Trustee's sale in the manner required by law,
      and after the lapse of such time as may then be required by law, subject to
      the
      statutory rights of reinstatement, the Trustee shall sell, in the manner
      required by law, said property at public auction at the time and place fixed
      by
      it in said notice of Trustee's sale to the highest bidder for cash in lawful
      money of the United States, payable at time of sale. Trustee may postpone or
      continue the sale by giving notice of postponement or continuance by public
      declaration at the time and place last appointed for the sale. Trustee shall
      deliver to such purchaser its Deed conveying the property so sold, but without
      any covenant or warranty, expressed or implied. Any persons, including Trustor,
      Trustee, or Beneficiary, may purchase at such sale.

    After
      deducting all costs, fees, and expenses of Trustee and of this Trust, including
      cost of evidence of title in connection with sale and reasonable attorney's
      fees, Trustee shall apply the proceeds of sale to payment of all sums then
      secured hereby and all other sums due under the terms hereof, with accrued
      interest; and the remainder, if any, to the person or persons legally entitled
      thereto, or as provided in A.R.S. 33-812. To the extent permitted by law, an
      action may be maintained by Beneficiary to recover a deficiency judgment for
      any
      balance due hereunder.

    In
      lieu
      of sale pursuant to the power of sale conferred hereby, this Deed of Trust
      may
      be foreclosed in the same manner provided by law for the foreclosure of
      mortgages on real property. Beneficiary shall also have all other rights and
      remedies available him hereunder and at law or in equity. All rights and
      remedies shall be cumulative.

    12.
      That
      Beneficiary may appoint a successor Trustee in the manner prescribed by law.
      A
      successor Trustee herein shall, without conveyance from the predecessor Trustee,
      succeed to all the predecessor's title, estate, rights, powers, and duties.
      Trustee may resign by mailing or delivering notice thereof to Beneficiary and
      Trustor.

    13.
      That
      this Deed of Trust applies to, inures to the benefit of, and binds all parties
      hereto, their heirs, legatees, devisees, administrators, executors, successors
      and assignees. The term Beneficiary shall mean the owner and holder of the
      note(s) secured hereby, whether or not named as Beneficiary herein. In this
      Deed
      of Trust, whenever the context so requires, the masculine gender includes the
      feminine and neuter, and the singular number includes the
      plural.

    14.
      That
      Trustee accepts this Trust when this Deed of Trust, duly executed and
      acknowledged, is made a public record as provided by law. Trustee is not
      obligated to notify any party hereto of pending sale under any other Deed of
      Trust or of any action or proceeding in which Trustor, Beneficiary, or Trustee
      shall be a party unless brought by Trustee. 

    The
      undersigned Trustor requests that a copy of any notice of Trustee's sale
      hereunder be mailed to him at his address hereinbefore set forth.

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    
      	Trustor	 	 	 
	D. FENN ENTERPRISES, INC., an Arizona
              corporation	 	 	 
	 	 	 	 
	 	 	 	 
	/s/ Devin
              W. Fenn	 	 	 
	
              

            	 	 	
            
	DEVIN
              W. FENN, President/Treasurer	 	 	 

    

     

    
      	
               STATE
                OF ARIZONA

               

              County of
                Cochise

            	
              )

              )

              )

            	
               

              ss

            	 	
              This
                instrument was acknowledged before
                me 

              this
                20th
                day of October, 2005 by 

              DEVIN
                W. FENN, President/Treasurer of D. 

              FENN
                ENTERPRISES, INC., an Arizona

              corporation

            
	 	 	 	 	 
	 	 	 	 	/s/ Kimberly
              Lockhart
	
            	 	 	 	
              

            
	 	 	 	 	
              Notary
                Public

            
	 	 	 	 	 
	 	 	 	 	My commission expires:
              06/1/2006

    

     

    
       

      
        	ACCEPTED
                AND APPROVED	 	 	 
	 	 	 	 
	Beneficiary	 	 	 
	
                BOWLIN TRAVEL CENTERS,
                  INC., a
                  Nevada

                Corporation

              	 	 	 
	 	 	 	 
	 	 	 	 
	/s/ William
                J. McCabe	 	 	 
	
                

              	 	 	
              
	
                W.
                  J. McCABE, Senior Vice President/Secretary-

                Treasurer

              	 	 	 

      

       

    

    
       

      
        	
                 STATE
                  OF NEW MEXICO

                 

                County of
                  Bernalillo

              	
                )

                )

                )

              	
                 

                ss

              	 	
                This
                  instrument was acknowledged before
                  me

                this 17th
                  day of October, 2005 by 

                W.
                  J. McCABE, Senior Vice

                President/Secretary-Treasurer
                  of BOWLIN 

                TRAVEL
                  CENTERS, INC., a Nevada 

                corporation

              
	 	 	 	 	 
	 	 	 	 	/s/ Heather
                L. Nutter
	
              	 	 	 	
                

              
	 	 	 	 	
                Notary
                  Public

              
	 	 	 	 	 
	 	 	 	 	My commission expires:
                10/25/2008

      

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

    

    

    Exhibit
      “A” - Partial Release Provisions

    

    Partial
      Release provision shall be on an acre by acre basis contingent upon
      Purchaser/Trustor reducing the principal balance due by an amount equal to
      125%
      of the per acre value, the down payment amount not withstanding. The per acre
      amount shall be equal to $80,000.00 divided by the total acreage amount as
      per
      survey.

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