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Prepared by and after
recording return to:
Reci tals
Greg Betterton
Betterton & Tyler
981 Ridgewood Avenue, #101
Venice, Florida 3428$
RECEIVED 2/14/2006 at 2:25 PM
RECEIVING # 915982
BOOK: 612 PAGE: 260
JEANNE WAGNER
LINCOLN COUNTY CLERK, KEMMERER, WY
MORTGAGE AND SECURITY AGREEMENT
Note: This document serves as a fixture filing under the Uniform Commercial Code - Secured
Transactions as adopted by the State of Wyoming. The Mortgagee is a Florida limited liability
company.
THIS MORTGAGE AND SECURITY AGREEMENT (the "Mortgage") is made this 9th
day of February, 2006, by EEA'fHERED HOOK PROPERTIES, LLC, a Wyoming Limited
Liability Company (the "Mortgagor" or "Maker"), whose address is 3615 South 2700 East, Salt
Lake City, UT 84109, in favor of BISON CAPITAL, LLC, a Florida Limited Liability Company
---- .
(together with its successor holder or holders of its Note the "Mortgagee"), whose address is 981
Ridgewood Avenue Suite 105, Venice, FL 34285.
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Pursuant to a certain Real Estate Purchase Contract (the "Purchase Agreement") dated
January 17, 2006, among Mortgagor and Mauri Ventures, LLC, Mortgagor has purchased the
Land (as defined below) and certain personal property (the "Personal Property") related thereto
from Mauri Ventures, LLC. In connection with that purchase, Mortgagor has executed and
delivered to Mortgagee a Promissory Note (as amended, extended or renewed from time to time,
the "Note") of even date herewith, in the original principal amount of Five Million Two Hundred
Twenty Five Thousand Seven Hundred Forty Two Dollars and 83/100 Dollars($5,225,742.83).
The final payment the Note is due thirty (30) months from the date hereof. The Note is by
reference made a part hereof to the same extent as though set forth in full herein.
NOW, THEREFORE, for value received and in consideration of direct benefits to
Mortgagor, to secure the payment and performance by the Maker of its obligations (the
"Obligations") now existing or hereafter arising under the Note, this Mortgage and all other
instruments now or hereafter evidencing or securing the Note, and in order to charge the
properties, interests and rights hereinafter described with such payment and performance and for
and in consideratión of the sum ofTen and No/100 Dollars ($10.00) and other good and valuable
consideration, the Mortgagor does hereby mortgage, transfer and assign to the Mortgagee and, as
applicable, grant a security interest in, all of the Mortgagor's right, title and interest, whether now
existing or hereafter acquired, in the following:
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(A) All of the land (the "Land") in Lincoln County, Wyoming, described in Exhibit
"A" attached hereto and made a part hereof, to have and to hold the same, together with all
rights, privileges, tenements, hereditaments, rights-of-way, easements, appendages, projections,
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appurtenances, water rights (including riparian and littoral rights), streets, ways, alleys, strips and
gores of land now or hereafter in any way belonging to, adjoining, appurtenant to, crossing, or
pertaining to the Land.
(B) All buildings, betterments, structures, improvements and fixtures of any nature
now or hereafter constructed or located, in whole or in part, on the Land, regardless of whether
physically affixed thereto or now or hereafter severed or capable of severance from the Land
(collectively, the "Improvements").
(C) All rights of the Mortgagor in and to all awards or payments, including interest
thereon and the right to receive the same, growing out of or resulting from any exercise of the
power of eminent domain (including the taking of all or any part of the Land or the
Improvements), or any alteration of the grade of any street upon which the Land abuts, or any
other injury to, taking of, or decrease in the value of the Land or the Improvements or any part
thereof.
(D) All rights of the Mortgagor in and to any hazard, casualty, liability, or other
insurance policy carried for the benefit of the Mortgagor or the Mortgagee or either of them with
respect to the Improvements, including without limitation any unearned premiums and all
insurance proceeds or sums payable in lieu of or as compensation for any loss of or damage to all
or any portion of the Improvements.
(E) All proceeds (and proceeds of proceeds), products, replacements, additions,
betterments, extensions, improvements, substitutions, renewals and accessions of or to any of the
foregoing:
Everything referred to in subparagraphs (A) through (E) above and any additional
property hereafter acquired by the Mortgagor and subject to the lien of this Mortgage or any part
of these properties is herein referred to as the "Mortgaged Property."
This Mortgage constitutes a security agreement within the meaning of, and shall create a
security interest under, the Uniform Commercial Code-Secured Transactions as adopted by the
State of Wyoming, as in effect from time to time, or under the Uniform Commercial Code in
force from time to time, in any other state to the extent the same is applicable law with respect to
the Improvements included in the Mortgaged Property and all proceeds and products thereof, and
all supporting obligations ancillary to or arising in any way in connection therewith (collectively,
the "Improvements"). A carbon, photographic or other reproduction of this Mortgage or of any
financing statement shall be sufficient as a financing statement. The debtor's principal place of
business and the secured party's address is set forth in the introductory paragraph to this
Mortgage. The Mortgagor shall execute and deliver to the Mortgagee, in form and substance
satisfactory to the Mortgagee, such financing statements, continuation statements and such
further assurances as either or both of the Mortgagee may from time to time consider reasonably
necessary to create, perfect, preserve and maintain in full force and effect the Mortgagee' lien
upon the Improvements. The Mortgagee, at the expense of the Mortgagor, may cause such
statements and assurances to be recorded and rerecorded, filed and re-filed, in the name of the
Mortgagor, and the Mortgagor hereby constitutes and irrevocably appoints the Mortgagee its true
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and lawful attorney-in-fact, which appointment is coupled with an interest, with full power of
substitution, and empowers such attorney or attorneys in the name of the Mortgagor, but at the
option of such attorney or attorneys-in-fact, to execute and file any and all financing statements.
In addition to the foregoing, the Mortgagor hereby authorizes the Mortgagee at any time and
from time to time to file any initial financing statements, amendments thereto and continuation
statements with or without signature of the Mortgagor as authorized by applicable law, as
applicable to the Mortgaged Property. For purposes of such filings, the Mortgagor agrees to
furnish any information requested by Mortgagee promptly upon request of such Mortgagee. The
Mortgagor also ratifies its authorization for Mortgagee to have filed any such initial financing
statements, amendments thereto or continuation statements if filed prior to the date of this
Mortgage. The Mortgagor hereby irrevocably constitutes and appoints the Mortgagee and any
officer or agent of Mortgagee, with full power of substitution, as its true and lawful attorney-in-
fact with full irrevocable power and authority in the place and stead of the Mortgagor or in the
Mortgagor's own name to execute in the Mortgagor's name any such documents and to otherwise
carry out the purposes of this section, to the extent that the Mortgagor's authorization above is
not sufficient. To the extent permitted by law, the Mortgagor hereby ratifies all acts such
attorneys-in-fact shall lawfully do, have done in the past or cause to be done in the future by
virtue hereof. This power of attorney is a power coupled with an interest and shall be
irrevocable.
The parties intend that this Mortgage shall continue in full force and effect until satisfied
by a written satisfaction executed and delivered by Mortgagee to the Mortgagor after payment in
full of all Obligations. The lien of this Mortgage shall secure all Obligations as more fully set
forth herein together with future advances or other extensions of credit as more fully set forth
herein.
The Mortgagor specifically agrees as follows:
1. Compliance with Note and the Mortgage and Warranty of Title. The Mortgagor
shall comply or cause the Maker to comply with all provisions hereof, of the Note, and of every
other instrument securing the Note, and will promptly pay to the Mortgagee the principal with
interest thereon and all other sums required to be paid by the Mortgagor under the Note, this
Mortgage and all other instruments securing the Note. The Mortgagor covenants and warrants
that: (a) the Mortgagor is indefeasibly seized of the Mortgaged Property; (b) the Mortgaged
Property is not subject to any liens or encumbrances, other than liens for taxes which are not yet
due, which are superior to the lien of this Mortgage (other than those matters, if any, described in
Exhibit "B" attached hereto; (c) the Mortgagor has lawful authority to convey, mortgage and
encumber the Mortgaged Property; (d) the Mortgagee shall have the right to peaceably and
quietly enjoy the Mortgaged Property to the extent of their rights as Mortgagee; (e) the
Mortgagor will defend title to the Mortgaged Property against the claims of all persons
whomsoever; and (f) the Mortgagor will provide such further assurances as may be necessary or
convenient to perfect title in the Mortgagee.
2.
Payment of Taxes and Liens.
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(a) The Mortgagor shall pay promptly, when due, and shall promptly upon
request of Mortgagee deliver to such Mortgagee copies of receipts therefor, all taxes,
assessments, rates, dues, charges, fees, impositions, obligations and encumbrances of
every kind whatsoever now or hereafter imposed, levied or assessed upon or against the
Mortgaged Property or any part thereof, or upon or against this Mortgage or the
Obligations ,or other sums secured hereby, or upon or against the interest of the
Mortgagee in the Mortgaged Property, as well as all income taxes, assessments and other
governmental charges levied or imposed by any taxing authority upon or against the
Mortgagor, the Mortgaged Property or any part thereof and any charge which, if unpaid,
would become a lien or charge upon the Mortgaged Property.
(b) The Mortgagor shall not permit any mortgage, mechanics', laborer's,
materialmen's, statutory or other lien to be created or to remain a lien upon any of the
Mortgaged Property.
(c) The Mortgagor shall promptly pay all yearly taxes, assessments, and other
similar charges against the Mortgaged Property as they become due (before any interest
attaches or any penalty is incurred), and shall promptly upon request of Mortgagee
deliver to such Mortgagee copies of receipts therefor.
3. Insurance.. The Mortgagor will maintain or cause to be maintained upon and
relating to the Mortgaged Property policies of property, liability and casualty insurance in
amounts satisfactory to the Mortgagee. All insurance policies relative to the Mortgaged Property
must be issued by an insurer, and be in an amount, satisfactory to the Mortgagee and must
include provisions for a minimum 3D-day advance written notice to the Mortgagee of any
intended policy cancellation or non-renewal. All liability insurance policies shall name the
Mortgagee as additional insured parties with respect to the Mortgaged Property, and each such
property insurance policy shall name the Mortgagee as loss payees, and shall provide by way of
endorsements, riders or otherwise that (i) proceeds will be payable to each Mortgagee as its
interest may appear; (ii) the Mortgagee will be loss payees for all proceeds; (iii) such insurance
policy shall be renewed, if renewal is available, and shall not be canceled and further, shall not
be endorsed, altered or reissued to effect a change in coverage in any manner materially adverse
to the Mortgagee, for any reason and to any extent whatsoever unless such insurer shall have first
given the Mortgagee thirty (30) days' prior written notice thereof; (iv) such insurance policy shall
not be impaired by any act or neglect of the Mortgagor or any use of the Mortgaged Property for
purposes more hazardous than are permitted by such policy; and (v) the Mortgagee may, but
shall not be obliged to, make premium payments to prevent any nonrenewal, cancellation,
endorsement, alteration or reissuance and such payments shall be accepted by the insurer to
prevent the same. Each Mortgagee shall be furnished with an original certificate of insurance
and a copy of the original policy if requested by such Mortgagee (or an original certificate and a
copy of the blanket policy) coincident with the execution of this Mortgage and satisfactory
evidence of renewal thereof not less than thirty (30) days prior to the expiration of the initial or
each preceding renewal policy together with receipts or other evidence that the premiums
thereon have been paid, with a copy of each renewal policy or a certificate with a duplicate of
such renewal policy to follow as soon as available or, in any such case, an appropriate broker's
certificate in respect thereto. In addition, the Mortgagor will promptly comply in all material
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respects with any and all requirements of any insurer of any portion of the Mortgaged Property
and any and all rules and regulations of any insurance commission or board of fire underwriters
having jurisdiction over the Mortgaged Property.
4. Loss or Casualtý.
(a) In the event of loss, each insurance company concerned is hereby
authorized and directed to make payments for such loss directly to the Mortgagee instead
of to the Mortgagor or to the Mortgagor and the Mortgagee jointly. Except as otherwise
set forth in subparagraph (b) below, the Mortgagee may at its option apply the insurance
proceeds or any part thereof after deducting therefrom all of the Mortgagee's expenses,
including attorneys' fees, either to the reduction of the Obligations or to the repair or
restoration of the property damaged. The Mortgagee is hereby authorized, at its option,
to settle and compromise any claims, awards, damages, rights of action and proceeds, and
any other payment or relief under any insurance policy. The Mortgagee shall not be
responsible for any failure to collect any insurance proceeds due under the term of any
policy regardless of the cause of the failure.
(b) Notwithstanding the foregoing subparagraph (a), the Mortgagor shall be
entitled, upon written request given to the Mortgagee within 30 days of loss or damage to
the Mortgaged Property, to use all insurance proceeds payable as theresult of such loss or
damage to repair or restore the Mortgaged Property if:
(i) No Event of Default shall have occurred hereunder on or before
the date of the payment of such insurance proceeds;
(ii) The insurance proceeds are paid into an escrow account with the
Mortgagee;
(iii) The Mortgagor, prior to commencing such repairs or restoration,
deposits into the escrow account described in (ii) above a sum necessary to
complete the repairs or restoration in the event the insurance proceeds are
insufficient to complete such repairs or restoration;
(iv) All repairs or restorations are carried out pursuant to plans and
specifications which are: (aa) provided to the Mortgagee within three months after
such loss or damage; and (bb) are acceptable to the Mortgagee; and
(c) The Mortgagee shall have a lien on all funds held in the escrow account
pursuant to the foregoing subparagraph (b) as further security for the Obligations.
5. Condemnation.
(a) The Mortgagee shall be entitled to all compensation, awards, damages,
claims and rights of action, together with all proceeds thereof, if all or any part of the
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Mortgaged Property shall be damaged or taken through condemnation (which term when
used herein shall include any damage or taking by any government authority or any other
authority lawfully authorized to so damage or take, and any transfer by private sale in lieu
thereof). The Mortgagee is hereby authorized, at its option, to commence, appear in and
prosecute, in its own name or in the name of the Mortgagor, any action or proceeding
relating to any condemnation, and to settle or compromise any claim in connection
therewith. In the event that Mortgagee elects to act as provided in the immediately
preceding sentence then prior to taking any such action, the Mortgagee shall grant (by
delivery of written notice) Mortgagor the right to prepay all Obligations secured by this
Mortgage. If Mortgagor elects to pre-pay then such pre-payment shall be delivered to
Mortgagee within seven days of the delivery of notice to Mortgagor and Mortgagee shall
promptly deliver full satisfaction to Mortgagor upon payment. All compensation,
awards, damages, claims, rights of action and proceeds derived from or relating to any
such condemnation, and any other payments or relief and the right thereto, are hereby
assigned by the Mortgagor to the Mortgagee, who, after deducting therefrom all its
expenses including attorneys' fees, may release any monies so received by it without
affecting the lien of this Mortgage or may, except as set forth in subparagraph (b) below,
apply the same, in such manner as the Mortgagee shall determine, to the reduction of the
sums secured hereby. Any balance of such monies then remaining shall be paid to the
Mortgagor. The Mortgagor agrees to execute such further assignments of any
compensations, awards, damages, claims, rights of action and proceeds as the Mortgagee
may require.
(b) Notwithstanding the foregoing subparagraph (a), if the amount of any such
damage or taking by condemnation does not exceed $100,000, then the Mortgagor shall
be entitled, upon written request made to the Mortgagee within 30 days of such damage
or taking, to use all condemnation proceeds payable as the result of such damage or
taking to repair or restore any damage to the Mortgaged Property caused by such
condemnation if:
(i) No Event of Default shall have occurred hereunder on or before
the date of the payment of such condemnation proceeds;
(ii) The condemnation proceeds are paid into an escrow account with
the Mortgagee;
(iii) The Mortgagor, prior to commencing such repairs or restoration,
deposits into the escrow account described in (ii) above a sum necessary to
complete the repairs or restoration (as determined by the Mortgagee in its
discretion) in the event the condemnation proceeds are insufficient to complete
such repairs or restoration;
(iv) All repairs or restorations are carried out pursuant to plans and
specifications which are: (aa) provided to the Mortgagee within three months after
such damage or taking; and (bb) are acceptable to the Mortgagee; and
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(v) The proceeds held in escrow (both the condemnation proceeds and
the Mortgagor's funds) are disbursed in accordance with the Mortgagee' standard
construction loan administration procedures.
(c) The Mortgagee shall have a lien on all funds held in the escrow account
pursuant to the foregoing subparagraph (b) as further security for the Obligations.
6. Care and Use of the Mortgaged Property. The Mortgagor shall not cut or remove
any material amount of timber, sever, remove or grant any rights in any water, oil, gas, minerals,
lime rock, phosphate, soil or other materials or remove or demolish any building or other
property forming a part of the Mortgaged Property without the prior written consent of the
Mortgagee in the Mortgagee' sole discretion. Except as such may be the result of the activities of
Mortgagee, the Mortgagor shall not permit, commit or suffer any waste, impairment or
deterioration of the Mortgaged Property or any part thereof, and shall keep the same and
improvements thereon in good condition and repair. The Mortgagor shall notify the Mortgagee in
writing within five (5) days of the discovery of any material damage or impairment of the
Mortgaged Property. The Mortgagor shall comply with all laws and regulations applicable to the
Mortgaged Property, including, without limitation, all zoning, environmental, land use and toxic
or hazardous waste disposal laws.
7. The Mortgagee Right to Make Certain Payments. In the event the Mortgagor fails
to complete or adequately maintain any improvements to the Mortgaged Property, payor
discharge the taxes, assessments, levies, liabilities, obligations (including obligations under any
leases) or encumbrances affecting the Mortgaged Property, or fails to keep the Mortgaged
Property insured or to deliver the policies, premiums paid, or fails to repair the Mortgaged
Property as herein agreed, or fails to make any payment required under any other mortgage or
security agreement relating to the Mortgaged Property (whether or not the existence of such
mortgage or security agreement is permitted by this Mortgage), or the Mortgagor otherwise
defaults in any covenant herein, the Mortgagee may at its option, after providing Mortgagor with
notice and opportunity to cure as provided in paragraph 13, without waiving or curing any
default by the Mortgagor, expend funds to complete such improvements, accomplish such
maintenance, payor discharge the taxes, assessments, levies, liabilities, and to payoff or cure
any default under, obligations and encumbrances or any part thereof, procure and pay for such
insurance or make and pay for such repairs and take such aétion to preserve the value of the
Mortgaged Property and otherwise perform any action required to be performed by the
Mortgagor. The Mortgagee shall have no obligation on its part to determine the validity or
necessity of any payments thereof and any such payment shall not waive or affect any option,
lien, equity or right of the Mortgagee under or by virtue of this Mortgage. The full amount of
each and every such payment shall be immediately due and payable and shall bear interest from
the date thereof until paid at the Default Rate, as defined below, and together with such interest,
shall be secured by the lien of this Mortgage. Nothing herein contained shall be construed as
requiring the Mortgagee to advance or expend monies for any of the purposes mentioned in this
paragraph. No such payments shall be deemed to waive or cure any default hereunder.
8. Payment of Expenses. ,The Mortgagor shall pay all of the costs, advances,
charges and expenses, disbursements and cost of abstracts of title, and documentary stamp (and
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any penalties or interest with respect thereto) incurred in connection with the Note or this
Mortgage or the enforcement thereof or paid at any time by either of the Mortgagee due to. the
failure on· the part of the Mortgagor promptly and fully to perform, comply with and abide by
each and every stipulation, agreement, condition and covenant of the Note and this Mortgage or
in the enforcement of the Mortgagee' rights hereunder. Such costs, charges and expenses shall be
immediateiy due and payable, whether or not there be notice, demand, attempt to collect or suit
pending. The full amount of each and every such payment shall bear interest from the date
thereof until paid at the Default Rate, as hereinafter defined. All such costs, charges and
expenses so incurred or paid, together with such interest, shall be secured by the lien of this
Mortgage and any other instrument securing the Note. No such payments shall be deemed to
waive or cure any default hereunder.
9. No Transfer or Further Encumbrance. The Mortgagor shall not sell, convey,
transfer, lease or further encumber any interest in or any part of the Mortgaged Property without
the prior written consent of the Mortgagee, and any such sale, conveyance, transfer, lease or
encumbrance made without the Mortgagee's prior written consent may, at the Mortgagee' option,
be declared null and void by the Mortgagee. Mortgagor acknowledges that although Mortgagee
may, in its sole discretion, execute partial releases necessary for Mortgagor to sell portions of the
Mortgaged Property, it shall not execute such releases unless it has determined, in its sole
discretion, that all of the sale proceeds less reasonable expenses of closing are applied to reduce
the Note and the net sale proceeds fairly represent the value of the portion of the Mortgaged
Property released. If any person should obtain an interest in all or any part of the Mortgaged
Property pursuant to the execution or enforcement of any lien, security interest or other right,
whether superior, equal or subordinate to this Mortgage or the lien hereof, such event shall be
deemed to be a transfer by the Mortgagor and a default hereunder.
10. Additional Documents. At any time and from time to time, upon the request of
Mortgagee or Mortgagor, the Mortgagor and Mortgagee respectively shall make, execute and
deliver or cause to be made, executed and delivered to such Mortgagee or Mortgagor, as the case
may be, and, where appropriate, Mortgagor shall cause to be recorded or filed and from time to
time thereafter to be recorded or refiled at such time and in such offices and places as shall be
deemed desirable by such Mortgagee any and all such further mortgages, instruments of further
assurance, certificates and other documents as such Mortgagee may consider necessary· or
desirable in order to effectuate, complete, enlarge or perfect, or to continue and preserve the
obligations of the Mortgagor under such Mortgagor's Note and this Mortgage, and the lien of
this Mortgage upon all of the Mortgaged Property, whether now owned or hereafter acquired by
the Mortgagor.
11. Events of Default. Subject to the provisions of paragraph 13, anyone of the
following shall constitute· an Event of Default:
(a) The occurrence of any Event of Default under the Note.
(b) Failure by the Mortgagor to pay, as and when due and payable, any
installments of principal, interest or other amounts due under the Note.
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(c) Failure by the Mortgagor to duly keep, perform and observe any other
covenant, condition or agreement in the Note, this Mortgage, or any other instrument
securing the Note for a period of fifteen (15) days after the Mortgagee gives written
notice specifying the failure,
(d) If. the Mortgagor or any guarantor or endorser of the Note: (i) files a
voluntary petition in bankruptcy, or (ii) is adjudicated as a bankrupt or insolvent, or (iii)
files any petition or answer seeking or acquiescing in any reorganization, management,
composition, readjustment, liquidation, dissolution or similar relief for itself under any
law relating to bankruptcy, insolvency or other relief for debtors, or (iv) seeks, consents
to òr acquiesces in the appointment of any trustee, receiver, master or liquidator of itself
or of all or any part of the Mortgaged Property, or (v) makes any general assignment for
the benefit of creditors, or (vi) makes any admission in writing of its insolvency or
inability to pay its debts generally as they become due.
(e) If: (i) a court of competent jurisdiction enters an order, judgment or decree
approving a petition filed against the Mortgagor seeking any reorganization, arrangement,
composition, readjustment, liquidation, dissolution or similar relief, under any present or
future federal, state, or other statute, law or regulation relating to bankruptcy, insolvency
or other relief for debtors, which order, judgment or decree remains un-vacated and un-
stayed for an aggregate of sixty (60) days whether or not consecutive from the date of
entry thereof; or (ii) any trustee, receiver or liquidator of the Mortgagor or of any part of
the Mortgaged Property is appointed without the prior written consent of the Mortgagee,
which appointment shall remain un-vacated and un-stayed for an aggregate of sixty (60)
days whether or not consecutive.
(f) Any breach of any warranty or any material untruth of any representation
of the Mortgagor contained in the Note or this Mortgage.
12. Acceleration. If an Event of Default shall have occurred, the Mortgagee may,
after compliance with paragraph 13, declare all amounts due under the Note held by such
Mortgagee and any interest accrued thereon, and all other sums secured hereby with respect to
such Mortgagee, to be due and payable immediately. Upon such declaration all principal and
interest and other sums owed to such Mortgagee shall immediately be due and payable without
demand or notice.
13. Mortgagor Notice and Right to Cure. Notwithstanding any provision of this
Mortgage or the Note to the contrary, the Mortgagee shall have the right to pursue its remedies in
the Event of Default under this Mortgage or the Note, without first complying with the notice
and cure provisions set forth here as follows:
(a)
Event of Default;
Mortgagee shall notify Mortgagor in writing, by certified mail, of the
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The notice shall provide sufficient detail as to the nature and extent of the
default.
default.
(c) The notice shall provide Mortgagee suggested method for curing the
(d) The Mortgagor shall have five (5) days to cure any payment default, and
fifteen (15) days to attempt to cure any non-payment default ("Cure Period").
(e) If, in the opinion of the Mortgagee, at the expiration of the Cure Period,
the default is continuing, then Mortgagee shall have the option to immediately demand full
payment of all Obligations.
(t) If Mortgagee demands full payment of all Obligations, then such demand
shall be in writing and include (i) the total amount necessary to satisfy all Obligations; (ii)
documentation supporting Mortgagee computation of the amount; and wiring instructions for the
payment.
(g) Mortgagor shall have seven days to tender payment.
(h) Mortgagee shall immediately deliver to Mortgagor a written satisfaction
upon receipt of full payment.
(i) If Mortgagor fails to timely tender payment then Mortgagee shall no
longer be subject to the provisions of this Paragraph 13.
14. Remedies After Default.
(a) If an Event of Default shall have occurred, the Mortgagee may, after
compliance with the provisions of paragraph 13, exercise any or all of the following
rights, remedies and recourses:
(i) The Mortgagee may, institute a proceeding, judicial or otherwise,
for the complete foreclosure of this Mortgage to the fullest extent permitted by
law; or institute a proceeding or proceedings, judicial or otherwise, for the partial
foreclosure of this Mortgage, as permitted by applicable law for the portion of the
Obligations then due and payable, with this Mortgage then continuing unimpaired
and without loss of priority so as to secure the balance of the Obligations.
(ii) To the extent permitted by applicable law, the Mortgagee may sell
or offer for sale the Mortgaged Property, in such portions, order and parcels as the
Mortgagee or Mortgagee, as the case may be, may determine, with or without
having first taken possession of same, to the highest bidder for cash in lawful
money of the United States at public auction in accordance with applicable law, or
the Uniform Commercial Code - Secured Transactions as adopted by the State of
Wyoming, and in the event of a sale, by foreclosure or otherwise, of less than all
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of the Mortgaged Property, this Mortgage shall continue as a lien and security
interest on the remaining portion of the Mortgaged Property. The Mortgagee may
postpone any sale by public announcement at the time and place noticed for the
sale. If the Mortgaged Property consists of several lots, parcels or items of
property, the Mortgagee, in its sole discretion and to the extent permitted by
applicable law: (i) designate the order in which such lots, parcels or items shall be
offered for sale or sales, or (ii) elect to sell such lots, parcels or items through a
single sale, or through two or more successive sales or in any other manner that
the Mortgagee deems in its best interest. Should the Mortgagee desire that more
than one sale or other disposition of the Mortgaged Property or any portion
thereof be conducted simultaneously, or successively, on the same day, or at such
different days or times and in such order as the Mortgagee may deem to be in its
best interests, no such sale shall terminate or otherwise affect the lien and security
interest of this Mortgage on any part of the Mortgaged Property not sold until all
the Obligations have been fully satisfied and the Mortgage shall have been
satisfied. The Mortgagor shall pay the expenses of any sale of the Mortgaged
Property, whether one or more, and of any judicial proceedings wherein the same
may be made, including reasonable compensation of the Mortgagee, its agents
and counsel, and shall pay all expenses, liabilities and advances made or incurred
by the Mortgagee in connection with such sale or sales, together with interest on
all such advances made by the Mortgagee at the Default Rate. Upon any sale
hereunder, the Mortgagee shall execute and deliver to the purchaser or purchasers
a deed or deeds conveying the property so sold, but without any covenant or
warranty whatsoever, express or implied, whereupon such purchaser or
purchasers shall be let into immediate possession; and the recitals in any such
deed or deeds of facts, such as default, the giving of notice of default and notice
of sale, and other facts affecting the regularity or validity of such sale or
disposition, shall be conclusive proof of the truth of such facts; and any such deed
or deeds shall be conclusive against all persons as to such facts recited therein.
(b) Prior to, upon or at any time after, commencement of foreclosure of the
lien provided for herein or any legal proceedings pursuant hereto, Mortgagee may make
application to a court of competent jurisdiction for appointment of a receiver of the
Mortgaged Property. Such application may be made as a matter of strict right and
without notice to the Mortgagor (unless notice is required by applicable law and such
right of notice may not be waived) or regard to the adequacy of the Mortgaged Property
or insolvency of the Mortgagor or any person who may be legally or equitably liable to
pay the Obligations and without giving bond to the Mortgagor (unless bond is required by
applicable law and such right of bond may not be waived), and the Mortgagor does
hereby irrevocably consent to such appointment. Any such receiver shall have all the
usual powers and duties of receivers in similar cases, including the full power to rent,
maintain and otherwise operate the Mortgaged Property. all upon such terms as may be
approved by the court.
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(c) To the extent permitted by applicable law, the Mortgaged Property may be
sold in one or more parcels and in such manner and order as the Mortgagee, in its sole
dis"cretion, may elect, it being expressly understood and agreed that the right of sale
arising out of any Event of Default shall not be exhausted by anyone or more sales.
(d) The Mortgagee shall have all rights, remedies and recourses granted in the
Note and Mortgage and available at law or equity (including specifically those granted by
the Uniform Commercial Code in effect and applicable to the Mortgaged Property)
including, without limitation, the right to judicially foreclose or bring an action in any
court of competent jurisdiction to foreclose this instrument as a realty mortgage if
permitted by applicable law, and, except as limited by applicable law, the same (i) shall
be cumulative and concurrent; (ii) may be pursued separately, successively or
concurrently against the Mortgagor or against all or any portion of the Mortgaged
Property, in the sole discretion of the Mortgagee; (iii) may be exercised as often as
occasion therefor shall arise, it being agreed by the Mortgagor that the exercise or failure
to exercise any of same shall in no event be construed as a waiver or release thereof or of
any other right, remedy or recourse; and (iv) are intended to be, and shall be
nonexclusive.
(e) The Mortgagee shall be entitled to receive all costs and expenses of the
sale or repossession of the Mortgaged Property including any receiver's fee or
commission, if any, title and abstracting charges, attorneys' fees and a auctioneer's fees,
and all other costs and expenses incurred in exercising its remedies hereunder.
(f) The Mortgagor shall not be relieved of any obligation it has under the
Note and Mortgage by reason of (i) the release, regardless of consideration, of any of the
Mortgaged Property or any other collateral held pursuant to the Note and Mortgage or the
addition of any other property to the Mortgaged Property or any other such collateral; (ii)
any agreement or stipulation between any subsequent owner of all or any portion of the
Mortgaged Property and the Mortgagee or Mortgagee extending, renewing, rearranging
or in any other way modifying the terms of the Note and Mortgage without first having
obtained the consent of, given notice to or paid any consideration to the Mortgagor, and
in such event the Mortgagor shall continue to be liable to make payment according to the
terms of any such extension or modification agreement unless expressly released and
discharged in writing by the Mortgagee or Mortgagee, as the case may be; or (iii) any
other acts or occurrence, save and except the full payment and performance of all of the
Obligations.
(g) To the fullest extent permitted by law, the Mortgagee may release,
regardless of consideration, any part of the Mortgaged Property without, as to the
remainder, in any way impairing, affecting, subordinating or releasing the lien or security
interest created in or evidenced by this Mortgage or its status as a first and prior lien and
security interest in and to the Mortgaged Property. For payment of the Obligations, to the
fullest extent permitted by applicable law, the Mortgagee may resort to any other security
in such order and manner as the Mortgagee may elect, and such resort may be taken
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concurrently or successively and in one or several consolidated or independent judicial
actions or lawfully taken non-judicial proceedings, or both.
(h) Except as otherwise provided in this Mortgage, to the fullest extent
permitted by applicable law, the Mortgagor hereby irrevocably and unconditionally
WAIVES and RELEASES (i) all benefits that might accrue to the Mortgagor by virtue of
any present or future law exempting the Mortgaged Property from attachment, levy or
sale on execution or providing for any appraisement, valuation, homestead exemption,
stay of execution, exemption from civil process, redemption or extension of time for
payment; (ii) except as otherwise provided in the Note and Mortgage, all notices of any
demand, presentment, Event of Default, intènt to accelerate or acceleration or the election
by the Mortgagee to exercise or the actual exercise of any right, remedy or recourse
provided for under the Note and Mortgage; (iii) any right to a marshalling of assets or a
sale in inverse order of alienation; (iv) any restrictions or conditions upon the exercise by
the Mortgagee of the remedies set forth herein; and (v) rights of redemption.
(i) To the extent permitted by applicable law, in case the Mortgagee shall
have proceeded to invoke any right, remedy or recourse permitted under the Note and
Mortgage and shall thereafter elect to discontinue or abandon same for any reason, the
Mortgagee shall have the unqualified right so to do and, in such an event, the Mortgagor
and the Mortgagee shall be restored to their former positions with respect to the Note and
Mortgage, the Mortgaged Property and otherwise, and the rights, remedies, recourses and
powers of the Mortgagee shall continue as if same had never been invoked.
G) To the extent permitted by applicable law, all proceeds received from the
sale or other dispositions of the Mortgaged Property, shall be applied by the Mortgagee
(or the receiver, if one is appointed), as applicable, to the extent that funds are so
available therefrom, in accordance with the following priorities:
First: to the costs and expenses of the sale or possession of the Mortgaged
Property including any receiver's fee or commission, if any, title and abstracting
charges, attorneys' fees and an auctioneer's fee if such expense has been incurred;
Second: to the satisfaction of the Obligations;
Third: to the payment to whomsoever shall be entitled thereto under
applicable law, if the person who made the sale knows who is entitled thereto.
Otherwise, the surplus shall be paid to the clerk of the superior, district or circuit
court (or other court having jurisdiction).
(k) If the Mortgagee shall be ordered, in connection with any bankruptcy,
insolvency or reorganization of the Mortgagor, to restore or repay to or for the account of
the Mortgagor or any of their creditors any amount theretofore received hereunder, the
amount for such restoration or repayment shall be deemed to be an Obligation so as to
place the Mortgagee in the position it would have been in had such amount never been
received by any party hereto.
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(1) Subject to the provisions of paragraph 13, if an Event of Default shall
occur, the Mortgagor will use its best efforts to cooperate with the Mortgagee and
promptly do all things reasonably required of it toward obtaining all necessary authority
and permission from any governmental authority or otherwise to accomplish any
disposition, abandonment or change in use of the Mortgaged Property (or any portion
thereof) as Mortgagee may request in connection with the exercise of its rights and
powers hereunder and under the other Note and Mortgage. Without limiting the
generality of the foregoing, following an Event of Default and reasonable advance notice
to the Mortgagor, the Mortgagor agrees to relocate operations located on the Mortgaged
Property to accommodate the disposition, abandonment, change in use or foreclosure by
the Mortgagee of any portion thereof, provided that such relocation does not materially
violate any legal requirement applicable to the Mortgagor or the Mortgaged Property.
(m) No delay or omission of Mortgagee or of any holder of any interest in the
Note to exercise any right, power or remedy accruing upon any Event of Default shall
exhaust or impair any such right, power or remedy or shall be construed to waive any
Event of Default or to constitute acquiescence therein.
15. No Waiver. No delay or omission of Mortgagee or of any holder of any interest
in the Note or the Mortgage to exercise any right, power or remedy accruing upon any Event of
Default shall exhaust or impair any such right, power or remedy or be construed as a waiver of
any such Event of Default or constitute acquiescence therein.
16. Non-Exclusive Remedies. No right, power or remedy conferred upon or reserved
to Mortgagee by the Note, this Mortgage or any other instrument securing the Note is exclusive
of any other right, power or remedy, but each and every such right, power and remedy shall be
cumulative and concurrent and shall be in addition to any other right, power or remedy given
hereunder or under the Note, or any other instrument securing the Note, or now or hereafter
existing at law, in equity or by statute.
17. Successors and Assigns Bound. Whenever one of the parties hereto is named or
referred to herein, the heirs, personal representatives, successors and assigns of such party shall
be included and all covenants and agreements contained in this Mortgage, by or on behalf of the
Mortgagor or the Mortgagee, shall bind and inure to the benefit of their respective heirs, personal
representatives, successors and assigns.
18. Invalid or Unenforceable. In the event that any of the covenants, agreements,
terms or provisions contained in the Note, this Mortgage or any other instrument securing the
Note shall be invalid, illegal or unenforceable in any respect, the validity of the remaining
covenants, agreements, terms or provisions contained herein and in the Note and any other
instrument securing the Note shall be in no way affected, prejudiced or disturbed thereby.
19. Obligation of the Mortgagor. The Mortgagor shall pay the cost of releasing or
satisfying this Mortgage of record.
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20. Interest Rate. The applicable interest rates shall be governed by the terms of the
Note. However, at no time shall any interest or charges in the nature of interest be taken,
exacted, received or collected which would exceed the maximum rate permitted by law.
21. No Merger. Neither the Mortgagor nor the Mortgagee intend that there be, and
there shall not in any event be, any merger of the lien and security interest of this Mortgage with
any other right, interest, lien or security interest in the Mortgaged Property held by either
Mortgagee, and it is specifically provided that the lien and security interest of this Mortgage on
one hand and any other right, interest, lien or security interest of the Mortgagee on the other hand
shall be and remain separate and distinct (and the priority of any and all such other rights,
interests, liens and security interests is hereby preserved).
IN WITNESS WHEREOF, the undersigned has executed this instrument as of the day
and year above first written.
Signed, sealed and delivered
in the resence of:
FEATHERED HOOK PROPERTIES, LLC.,
:~t~.d Liab.ility C ?
Prmt Name:
Its: -H fIl~r
(SEAL)
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Notar Public, State and
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Print Name:
My commission expires:
My commission number:
(NOTARIAL SEAL)
NOTARY PUBLIC
CHANTEL C RICHARDS
2330 E 3300 S
Sail Lake City, UT 64019
My Commission Expires
June 26-2007
STATE. OF UTAH
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EXHIBIT A
(Legal Description)
T28N Rl19Wof the6'th P.M., Lincoln County, Wyoming
section 4: Lots 3 and 4 and WHSW~i
Section 5: Lots 1, 2, 3 and 4 a.nd S~;
Section 6: Lots 1, 2, 3 and 4 , WJ{SWl,\, SE~ and E~S1"l~i
Section 7: All ¡
Section 8: All;
Section 9: SW~".
T28N R120W of t.he 6th P.M., Linooln County¡ Wyoming
Section 1: Lots 1, 2 and 3 iNE~SE~, SE~SE~ and W~SE~.
T29N R119W of the 6thP.M... Lincoln County, Wyoming
Sectio;n 31: S~SE~.
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