SEC Contract Filing

Filing Date: 2015-11-12

Document Content:
<DOCUMENT>
<TYPE>EX-10.2
<SEQUENCE>3
<FILENAME>d26343dex102.htm
<DESCRIPTION>EX-10.2
<TEXT>
<HTML><HEAD>
<TITLE>EX-10.2</TITLE>
</HEAD>
 <BODY BGCOLOR="WHITE">

 <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="right"><B>Exhibit 10.2 </B></P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center"><B>SECURED PROMISSORY NOTE </B></P> <P STYLE="font-size:12pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
<TABLE CELLSPACING="0" CELLPADDING="0" WIDTH="100%" BORDER="0" STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:Times New Roman; font-size:10pt" ALIGN="center">

<TR>
<TD WIDTH="51%"></TD>
<TD VALIGN="bottom" WIDTH="2%"></TD>
<TD WIDTH="47%"></TD></TR>

<TR STYLE="font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top"> <P STYLE="margin-left:1.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman">$3,670,000.00</P></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">August&nbsp;7, 2015</TD></TR>
<TR STYLE="font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top"></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">Pueblo, Colorado</TD></TR>
</TABLE> <P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">For value received, EWSD I LLC, an Arizona limited liability company, EAST WEST SECURED DEVELOPMENTS, LLC, an
Arizona limited liability company, BRIAN LOISELLE, an individual, and TODD JOHNSON, an individual (together, jointly and severally, the &#147;<U>Borrower</U>&#148;&#146;) promise to pay to the order of SOUTHWEST FARMS, INC., a Colorado corporation
(together with its successors and assigns, the &#147;<U>Lender</U>&#148;), the principal amount of THREE MILLION SIX HUNDRED SEVENTY THOUSAND AND NO/100THS DOLLARS ($3,670,000.00) pursuant the terms of this Note, with interest thereon as provided
below. </P> <P STYLE="margin-top:6pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">1. <U>Carry-Back Loan; No Re-Advances</U>. This Note evidences Borrower&#146;s obligation to pay a portion of the purchase price
payable by Borrower to Lender pursuant to the terms of that certain Contract to Buy and Sell Real Estate (Land) dated as of July&nbsp;13, 2015, relating to the purchase and sale of that certain real property located at 214 39th Lane, Pueblo,
Colorado 81006, together with all related water rights, mineral rights, improvements, fixtures and other appurtenances (collectively, the &#147;<U>Property</U>&#148;). The loan evidenced by this Note is in the nature of a seller carry-back loan. The
loan evidenced by this Note shall be non-revolving and shall <U>not</U> be re-advanced after repayment. The unpaid principal balance owing on this Note at any time may be evidenced by endorsements on this Note itself or by Lender&#146;s internal
records. </P> <P STYLE="margin-top:6pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">2. <U>Interest</U>. Interest on the outstanding principal balance of this Note shall accrue, and shall be calculated, at the rate
of five percent (5.0%)&nbsp;per annum (the &#147;<U>Interest Rate</U>&#148;) from the date of this Note until paid in full. Interest shall be computed on the basis of actual days elapsed and a 365-day year and shall be payable in arrears. </P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">3. <U>Payments</U>. This Note shall be payable as follows: (a)&nbsp;thirty-five (35)&nbsp;payments of principal and interest, which shall be
calculated based upon a hypothetical amortization period of thirty (30)&nbsp;years, commencing on September&nbsp;1, 2015 and continuing thereafter on the first day of each calendar month through and including July&nbsp;1, 2018; and (b)&nbsp;one
(1)&nbsp;final BALLOON payment of all unpaid principal and accrued but unpaid interest on August&nbsp;1, 2018 (the &#147;<U>Maturity Date</U>&#148;). The time period from the date of this Note through and including the satisfaction of all
obligations under this Note and the other Loan Documents (as defined below) is hereinafter referred to as the &#147;<U>Loan Term</U>&#148;. All payments against this Note shall be payable without setoff, deduction or demand and shall be made in
lawful money of the United States of America at 1825 Chianti Court, Pueblo, Colorado 81001, or at such other place as Lender may from time to time designate in writing. </P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">4. <U>Application of Payments</U>. Payments made under this Note shall be applied first to late charges, second to collection costs, third to
accrued and unpaid interest and fourth to principal hereunder. Notwithstanding the foregoing, any payments received after the occurrence of and during the continuance of an Event of Default (as defined below) shall be applied in such manner as
Lender may determine. </P> <P STYLE="margin-top:6pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">5. <U>Default Rate</U>. At Lender&#146;s option and without prior notice, upon the occurrence of an Event of Default
(as defined below) or at any time during the pendency of any Event of Default under this Note or any related loan documents, Lender may impose a default rate of interest (the &#147;<U>Default Rate</U>&#148;) equal to the lesser of (a)&nbsp;eighteen
percent per annum (18%); and (b)&nbsp;the highest rate permitted under applicable law. The Default Rate shall remain in effect until the default has been cured and that fact has been communicated to and confirmed by Lender. Lender&#146;s imposition
of the Default Rate shall not constitute an election of remedies or otherwise limit Lender&#146;s rights concerning other remedies available to Lender as a result of the occurrence o