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MORTGAGE
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THIS MORTGAGE is made on the loth day of September, 2008, by Daniel M. Worton
and Danette N. Worton, Husband and Wife as Tenants by the Entirety, whose address is 417
Worton Lane, Auburn, Wyoming 83111, hereinafter referred to as "Mortgagor".
Mortgagor hereby mortgages to Eugene K. Worton, Trustee of the Worton Family Trust
dated May 10, 1995, whose address is 244 Tom's Canyon Road, Auburn, Wyoming 8311l, and
his heirs and assigns, hereinafter referred to as "Mortgagee", certain real property located in
Lincoln County, Wyoming, more specifically described below, upon the terms and conditions set
forth below.
Mortgagor, for and in consideration of the sum of THREE HUNDRED THOUSAND
DOLLARS ($300,000.00), lawful money of the United States and other valuable consideration,
loaned to Mortgagor by Mortgagee, evidenced by a Promissory Note dated May l, 2006, the
receipt of which is hereby confessed and acknowledged, does hereby mortgage to Mortgagee
forever, the real property situate in the County of Lincoln, State of Wyoming located at 417
Worton Lane, Auburn, Wyoming and more properly described as:
That real estate described on the attached Exhibit A entitled "DESCRIPTION:
,
WORTON FINANCIAL SURETY"
Together with all buildings kd improvements thereon, or which may hereafter be placed
thereon; all fixtures now or hereafter attached to said premises; all water and water rights, ditches
and ditch rights, reservoirs and reservoir rights, and irrigation and drainage rights; and all
easements, appurtenances and incidents now or hereafter belonging or appertaining there to;
subject, however, to all covenants, conditions, easements, and right-of-way, and to mineral,
mining and other exceptions, reservations and conditions of sight and/or of record.
RECEIVED 10/1/2008 at 11:18 AM
RECEIVING # 942594
BOOK: 706 PAGE: 75
JEANNE WAGNER
LINCOLN COUNTY CLERK, KEMMERER, WY
MORTGAGE
WORTON / WORTON
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Mortgagor covenants that at the signing and delivery of the Mortgage, said Mortgagor is
lawfully seized in fee simple of said property, or has such other estate as is stated herein; has
good and lawful right to mortgage, sell and convey all of said property; and warrants and will
defend the title to all of said property against all lawful claims and demands, and that the same is
free from all encumbrances.
However, this Mortgage is subject to the express condition that if Mortgagor pays, or
causes to be paid, to Mortgagee the sum of THREE HUNDRED THOUSAND DOLLARS
($300,000.00), together with interest thereon at the rate of six and one-half percent (6.5 %) per
annum, until paid, according to the conditions of the Promissory Note dated May 1, 2006, which
Promissory Note was executed and delivered by Mortgagor to Mortgagee, which sum or sums of
money Mortgagor hereby covenants to pay, and until such payment, performs all of the
covenants and agreements herein to be performed by Mortgagor, then this Mortgage and said
note shall cease and be null and void.
Mortgagor further covenants and agrees as follows:
1. Payment & Late Payments. Mortgagor shall pay the indebtedness as herein
provided, and the lien ùf this instrument shall remain in full force and effect during any
postponement or extension of time of payment of any part of the indebtedness secured hereby. If
Mortgagor makes more than three (3) late payments of the indebtedness secured hereby, as
defined the Promissory Note of even date that was executed and delivered by Mortgagor to
Mortgagee, Mortgagee may, at Mortgagee's option, declare all the sums secured by this
Mortgage to be immediately due and payable. Any delay or failure on the part of Mortgagee to
demand such payment shall not prejudice Mortgagee's right to do so.
MORTGAGE
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2. Prepayments. Mortgagor shall have the privilege of paying any principal sum or
sums plus accrued interest, in addition to the payments herein required, at any time without
premium or penalty of any kind, and it is understood and agreed that any such prepayment shall
be credited first to interest and the balance to principal in the inverse order of when due.
3. Transfer of the Property / Due on Sale. If all or any part of the property or any
interest herein is sold or transferred by any means by Mortgagor without Mortgagee's prior
written consent, excluding the creation of a lien or encumbrance subordinate to this Mortgage or
a transfer by devise, descent or by operation of law upon the death of a joint tenant, Mortgagee
may, at Mortgagee's option, declare all the sums secured by this Mortgage to be immediately
due and payable. Any delay or failure on the part of Mortgagee to demand such payment shall
not prejudice Mortgagee's right there to. Mortgagee shall have waived such option to accelerate
if, prior to the sale or transfer, Mortgagee at Mortgagee's sole discretion, enters into a written
agreement with the person whom the property is to be sold or transferred expressly consenting to
such assumption and setting forth any new terms or conditions of this Mortgage as may be
requested by Mortgagee in exchange for Mortgagee agreeing to an assumption of the this
Mortgage.
4. Taxes and Assessments. Mortgagor shall pay all taxes and assessments levied or
assessed against said property.
5. Maintenance of Property. Mortgagor shall not commit or permit waste, nor be
negligent in the care of said property, and shall maintain the same in as good condition as at
present, reasonable wear and tear excepted, and will do nothing on or in connection with said
property which may impair the security of Mortgagee hereunder. Mortgagor shall not cause or
permit the presence of any hazardous substances, which shall include any substances so declared
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under Federal or State law, on said property. Mortgagor shall not permit said property, or any
part hereof, to be levied upon or attached in any legal or equitable proceeding, and shall not,
except with the consent in writing of Mortgagee, or as is otherwise provided and permitted in
this Mortgage, remove or attempt to remove said improvements, or any part thereof, from the
premises on which the same are situated.
6. Insurance. As collateral and further security for the payment of the indebtedness
hereby secured, Mortgagor shall keep the improvements now existing or hereinafter erected on
said premises insured against loss by fire, with extended coverage provisions, to the full
insurable value thereof for the term of this Mortgage, and will pay when due all premiums on
such insurance. All insurance shall be carried in responsible insurance companies licensed in
Wyoming and the policies and renewals thereof shall have attached thereto by rider or otherwise
loss payable clauses in favor of Mortgagee. A copy of said policy or any renewal documents
pertaining thereto shall be supplied to Mortgagee within 30 (thirty) days after the date of
execution of this Mortgage and thereafter within 10 (ten) days of any renewal of or amendment
to such policy. The insurance proceeds, or any part thereof, may, at the option of Mortgagor, be
applied either to the reduction of the indebtedness hereby secured or used in reconstruction. In
the event of foreclosure of this Mortgage or other transfer of title to the said premises in
extinguishments of the indebtedness secured hereby, all right, title and interest of Mortgagor in
and to any insurance policies then in force shall pass to the purchaser or grantee.
7. Mortgagee Authorized to Make Payments. If Mortgagor defaults in the payment
of the taxes, assessments or other lawful charges, including any construction loan payments or
fails to keep the improvements on said premises insured as herein provided, Mortgagee may,
without notice or demand, pay the same, and if Mortgagor fails to keep said property in good
MORTGAGE
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repair, Mortgagee may make such repairs as may be necessary to protect the property, all at the
expense of Mortgagor. Mortgagor covenants and agrees that all such sums of money so
expended, together with all costs of enforcement or foreclosure, and a reasonable attorney fee,
shall be added to the debt hereby secured, and agrees to repay the same and all expenses so
incurred by Mortgagee, with interest thereon ITom the date of payment at the same rate as
provided in the note hereby secured, until repaid, and the same shall be a lien on all of said
property and be secured by this Mortgage.
8. Default. If Mortgagor defaults in the payment of the indebtedness hereby
secured, for a period of 30 (thirty) days after written notice, or if Mortgagor removes or attempts
to remove any of said improvements contrary to the provisions of this Mortgage, or in case of
breach of any covenant or agreement herein contained, the whole of the then indebtedness
secured hereby, both principal and interest, together with all other sums payable pursuant to the
provisions hereof, shall, at the option of Mortgagee, become immediately due and payable,
anything herein or in said note to the contrary notwithstanding, and failure to exercise the same
in a default shall not preclude such exercise in the event of any subsequent default. Mortgagee
may enforce the provisions of, or foreclose, this Mortgage by any appropriate suit, action or
proceeding at law or in equity, and cause to be executed and delivered to the purchases or
purchasers at any foreclosure sale a proper deed of conveyance of the property so sold.
Mortgagor hereby grants Mortgagee the power to foreclose by advertisement and sale as
provided by statute. All remedies provided in this Mortgage are distinct and cumulative to any
other right or remedy under this Mortgage or afforded by law or equity and may be exercised
concurrently, independently or successively. Mortgagor agrees to pay all costs of enforcement
or foreclosure, including a reasonable attorney's fee. The failure of Mortgagee to foreclose
MORTGAGE
WORTON 1 WORTON
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promptly upon a default shall not prejudice any right of said Mortgagee to foreclose thereafter
during the continuance of such default or right to foreclose in case of further default or defaults.
The net proceeds from such sale shall be applied to the payment of: first, the costs and expenses
of the foreclosure and sale, including a reasonable attorney's fee, and all moneys expended or
advanced by Mortgagee pursuant to the provisions of this Mortgage; second, all unpaid taxes,
assessments, claims and liens on said property, which are superior to the lien hereof; third, the
balance due Mortgagee on account of principal and interest on the indebtedness hereby secured;
and the surplus, if any, shall be paid to Mortgagor.
9. Insufficiency of Foreclosure Proceeds. If the property described herein is sold
under foreclosure and the proceeds are insufficient to pay the total indebtedness hereby secured,
Mortgagor executing the note or notes for which this Mortgage is security shall be personally
bound to pay the unpaid balance, and Mortgagee shall be entitled to a deficiency judgment.
10. Assignment of Rents. If the right of foreclosure accrues as a result of any default
hereunder, Mortgagee shall at once become entitled to exclusive possession, use and enjoyment
of all property aforesaid, and to all rents, issues and profits thereof, from the accruing of such
right and during the pendency of foreclosure proceedings and the period of redemption, and such
possession, rents, issues and profits shall be delivered immediately to Mortgagee on request. On
refusal, Mortgagee may enforce the delivery of such possession, rents, issues and profits by any
appropriate suit, action or proceeding. Mortgagee shall be entitled to a Receiver for said
property and all rents, issues and profit thereof, after any such default, including the time covered
by foreclosure proceedings and the period of redemption, and without regard to the solvency or
insolvency of Mortgagor, or the then owner of said property, and without regard to the value of
said property, or the sufficiency thereof to discharge the Mortgage debt and foreclosure costs,
MORTGAGE
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fees and expenses. Such Receiver may be appointed by any court of competent jurisdiction upon
ex parte application, notice being hereby expressly waived, and the appointment of any such
Receiver on any such application without notice is hereby consented to by Mortgagor. All rents,
issues and profits, income and revenue of said property shall be applied by such Receiver
according to law and the orders and directions of the court.
11. Inspection. Mortgagee may make or cause to be made reasonable entries upon
and inspections of the property, provided that Mortgagee shall give Mortgagor notice prior to
any such inspection specifying reasonable cause therefore related to Mortgagee's interest in the
property.
12. Condemnation. The proceeds of any award or claim for damages, direct or
consequential, in connection with any condemnation or other taking of the property, or part
hereof, or for conveyance in lieu of condemnation, are hereby assigned and shall be paid to
Mortgagor. In the event of a partial taking of the property, unless Mortgagor and Mortgagee
otherwise agree in writing, there shall be applied to the sums secured by this Mortgage such
proportions of the proceeds as is equal to that proportion which the amount of the sums secured
by this Mortgage immediately prior to the date of taking bears to the fair market value of the
property immediately prior to the date of taking, with the balance of the proceeds paid to
Mortgagor. If the property is abandoned by Mortgagor, or if, after notice by Mortgagee to
Mortgagor that the condemner offers to make an award or settle a claim for damages, Mortgagor
fails to respond to Mortgagee within 30 (thirty) days after the date such notice is mailed,
Mortgagee is authorized to collect and apply the proceeds, at Mortgagee's option, either to
restoration or repair of the property or to reduce the sums secured by the Mortgage. Unless
Mortgagee and Mortgagor otherwise agree in writing, any such application of proceeds to
MORTGAGE
WORTON 1 WORTON
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principal shall not extend or postpone the due date of the installments referred to above or
change the amount of such installments.
13. Statement. Mortgagee shall, within ten (10) days upon a request made in person,
or within thirty (30) days upon request by mail, furnish a written and duly acknowledged
statement of the amount due on this Mortgage and whether any offsets or defenses exist against
the mortgage debt.
14. Notices. Any notices, demands, or requests pursuant to this Mortgage shall be in
writing and may be served either in person or by certified mail, return receipt requested. Notice
shall be deemed given when mailed and shall be addressed as follows or at such other address as
either party may from time to time designate in writing:
Mortgagor:
Mortgagee:
Daniel M. & Danette N. Worton,
417 Worton Lane
Auburn, Wyoming 83111
Eugene K. Worton, Trustee
Worton Family Trust
244 Tom's Canyon Road
Auburn, Wyoming 83lll
15. Headings. The headings used in this Mortgage are for convenience only and are
not to be used in its construction.
l6. Binding Effect and Construction. The covenants herein contained shall bind, and
the benefits and advantages shall inure to, the respective heirs, devisees, legatees, executors,
administrators, successors and assigns of the parties hereto. Whenever used the singular number
shall include the plural, the plural the singular, and the use of any gender shall include all
genders. The term "note" includes all notes herein described if more than one. The term
"foreclosure" and "foreclose" as used herein, shall include the right of foreclosure by any suit,
action or proceeding at law of in equity, or by advertisement and sale of said premises, or in any
other manner now or hereafter provided by Wyoming statutes, including the power to sell.
MORTGAGE
WORTON 1 WORTON
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17. Release. The acceptance by Mortgagee of this Mortgage and the note or notes it
secures, shall be an acceptance of the terms and conditions contained therein. Upon payment of
all sums secured by this Mortgage, Mortgagee shall release this Mortgage without charge to
Mortgagor. Mortgagor shall pay all costs of recordation, if any.
18. Waiver of Homestead. Mortgagor hereby relinquishes and waives all rights under
and by virtue of the homestead exemption laws of the State of Wyoming.
19. Incorporation of Promissory Note. This Mortgage is made to secure a debt
evidenced by a Promissory Note signed concurrently herewith, and the terms of said Promissory
Note are hereby incorporated herein by reference as if stated herein in full.
20. Waiver. Waiver by Mortgagee of any breach of any term, covenant, or condition
herein contained shall not be deemed to be a waiver of such term, covenant, or condition, or of
any subsequent breach of the same or any other term, covenant, or condition herein contained.
The subsequent acceptance of payment hereunder shall not be deemed a waiver of any preceding
breach by Owner of any term, covenant, or condition of this Mortgage.
21. Miscellaneous. Time is of the essence of this Mortgage. This contract is
governed by and construed in accordance with the laws of the State of Wyoming. Lincoln
County, Wyoming, shall be proper venue for any litigation or action involving this Mortgage.
This is the entire agreement between the parties and may not be modified or amended except by
a written document executed by both parties.
MORTGAGE
WORTON 1 WORTON
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IN WITNESS WHEREOF, the said Mortgagor has hereunto signed and sealed these
presents the day and year first above written.
¡;J~/ll~
DANIEL M. WORTON
J2ffÞg£
DANETTE N. W TON
STATE OF WYOMING )
) SS.
COUNTY OF LINCOLN )
ACKNOWLEDGED before me on this, the ~ day of September, 2008, by DANIEL
M. WORTON and DANETTE N. WORTON.
WITNESS my hand and official seal.
JACK D. EDWARDS - NOTARY PUBLIC
COUNTY OF ."" STATE OF
LINCOLN WYOMING
MY COMMISSION EXPIRES JAN, 18, 2010
d~»'d~
NOTARY PUBLIC
My Commissi~n expires: -dAN\. '8 I Z,IO
MORTGAGE
WORTON 1 WORTON
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Description: Worton Financial Surety
A portion of the Worton property, as referred to in the
Deed recorded in Book 417PR, on Page 96, within the
Sl/2NW1/4 of Section 35, T33N, R119W, of the 6th P.M.,
Lincoln County, Wyoming, the metes and bounds being more
particularly described as follows:
BEGINNING at the Paul N. Scherbel RLS 164, 1986 location
for the Northeast Corner of the SW1/4 of said Section 35;
thence N89°25'17"W, along the North line of said SW1/4,
361. 70 feet¡
thence Noo29'33"E, parallel with the West line of the NE1/4
of said Section 35, 361.70 feet;
thence S89°25'17"E, parallel with said North line, 361.70
feet to a Point in said West line;
thence Soo29'33"W, along said West line, 361.70 feet, to
the Point of Beginning, containing 3.00± Acres of lànd.
SUBJECT TO: A 36-feet Right-of-Way Easement, along the East
line of the above described Parcel, being Worton Lane
County Road 12-132, as referred to in the Resolution Dated
the 8th Day of February 1989, recorded in Book 2 of
Resolutions, on Page 179, with said Office.
TOGETHER WITH and SUBJECT TO: All Easements, Exceptions,
Reservations, Restrictions, Rights-of-Way and Improvements
of sight and or record.
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EXHIBIT
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