HomeMy WebLinkAbout969226RECORDATION REQUESTED BY:
Maci Management Services LLC
2345 North Woodruff Avenue
Idaho Falls, ID 83401
WHEN RECORDED MAIL TO:
Maci Management Services LLC
2345 North Woodruff Avenue
Idaho Falls, ID 83401
MORTGAGE
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00548
RECEIVED 1/30/2013 at 11:02 AM
RECEIVING 969226
BOOK: 803 PAGE: 548
JEANNE WAGNER
LINCOLN COUNTY CLERK, KEMMERER, WY
SPACE ABOVE THIS LINE IS FOR RECORDER'S USE ONLY
KNOW ALL MEN BY THESE PRESENTS, that Marvin Lee Schwab, of P.O. Box 1121,
Afton, WY 83110, as Mortgagor, for good and valuable consideration, and to secure that certain
Personal Guaranty dated of even date herewith in favor of Maci Management Services LLC, a
limited liability company, organized under the laws of the state of Idaho, having a principal place of
business at 2345 North Woodruff Avenue, Idaho Falls, ID 83401, as Mortgagee, and to induce the
Mortgagee to purchase certain equipment or Licensed Property from Polyguard LLC pursuant to
that certain Licensing Agreement, and to secure that certain Licensing Agreement, including,
without limitation, the full and complete performance and payment thereof, hereby mortgages to
Mortgagee, the following described real estate, situated in the County of Lincoln, State of
Wyoming, including, without limitation, any and all right, title, and interest of the Mortgagor therein:
All real property described in Exhibit A attached and incorporated herein by this
reference (the "Real Property
Including any and all improvements thereon, together with the tenements, hereditaments,
and appurtenances thereto belonging, and the rents, issues and profits thereof;
And further including any and all existing or subsequently erected or affixed buildings;
any and all fixtures, including, without limitation, any and all plumbing, lighting, electrical,
heating, air conditioning, cooling, and ventilating systems; any and all easements and rights of
way; any and all water, water rights, irrigation equipment, pumps, pivots, lines, pipes, hand
lines, and sprinklers; any and all ditches and ditch rights; any and all crops, timber, grazing
rights, governmental payments, participation payments, set aside payments, diversion
payments, and third party payments of whatever kind and nature; and any and all royalties or
other rights of whatever kind or nature that relate or otherwise pertain to the Real Property,
including, without limitation, any and all mineral, oil, gas, geothermal, and similar rights.
In addition, the Mortgagor hereby assigns any and all leases that relate or otherwise
pertain to the Real Property to the Mortgagee, including, without limitation, the right, title, and
interest of the Mortgagor therein. This assignment is absolute, unconditional, and irrevocable.
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The leases include, without limitation, any and all current and future leases, subleases,
licenses, agreements, and other understandings and arrangements that relate or otherwise
pertain to the use, occupancy, or possession of the Real Property, including any and all
extensions, renewals, modifications, or replacements thereof.
In addition, the Mortgagor hereby assigns any and all rents that relate or otherwise
pertain to the Real Property to the Mortgagee, including, without limitation, the right, title, and
interest of the Mortgagor therein. This assignment is absolute, unconditional, and irrevocable.
The rents include, without limitation, any and all current and future rents, issues, profits,
minimum rents, percentage rents, additional rents, security deposits, common area charges,
operation and maintenance charges, fees, revenues, royalties, proceeds, accounts, general
intangibles, and other rights that relate or otherwise pertain to the use, occupancy, or
possession of the Real Property.
If any of the foregoing constitutes or is otherwise deemed to be personal property, this
Mortgage shall constitute and be deemed to be a security agreement. The Mortgagee shall have
all of the rights and remedies of a secured party under the Uniform Commercial Code, as
amended.
Mortgagor shall keep the improvements located on the property fully insured against fire
and other perils with an insurance company duly licensed in the State of Wyoming to provide such
insurance, shall deliver a certificate of insurance to Mortgagee at least annually, and shall pay the
premium therefor.
Mortgagor also agrees to pay all taxes and assessments on said premises, including any
assessments that may be levied on water rights or shares of stock used in connection therewith, or
held as collateral with the above note; also any tax that may be assessed by reason of this
mortgage or the debt secured thereby, and reasonable attorney's fees in case of foreclosure, or the
commencement of any legal proceedings for foreclosure of the same, and said attorney's fees shall
be added to the amount due on this mortgage, and made a lien on the premises described herein.
In case of default in the performance of any covenant herein contained, including the
Personal Guaranty secured hereby or the Licensing Agreement secured hereby, this mortgage may
be foreclosed at the option of the legal holder. In the event of default, Mortgagor grants to
Mortgagee a Power of Sale to foreclose on and sell said property at public auction pursuant to
W.S. §34 -4 -101 et seq., or its successor.
This Mortgage is given to secure (a) the full and complete performance and payment of the
Personal Guaranty of M. Lee Schwab to the Mortgagee; (b) the full and complete performance and
payment of the Personal Guaranty of Daryl Lynn Schwab to the Mortgagee; (c) the full and
complete payment of any and all debts, liabilities, or other obligations under this Mortgage; (d) the
full and complete performance of the terms and conditions of this Mortgage; (e) the full and
complete performance and payment of any and all extensions, renewals, refinancings, or other
modifications, amendments, or other changes of this Mortgage; and (f) the full and complete
performance and payment of the Licensing Agreement between the Mortgagee and Polyguard
LLC, including, without limitation, a minimum Royalty Payment of $2,100,000.00 in accordance with
Section 3 of the Licensing Agreement —to wit, an annual Royalty Payment for a term of 10 years
after the execution of the Licensing Agreement in an amount equal to the greater of $210,000.00 or
$10.00 times the number of sold Licensed Articles under the Licensing Agreement.
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COVENANTS AND WARRANTIES. The Mortgagor hereby covenants, warrants, represents,
and agrees:
3. That the Mortgagor will maintain casualty insurance, naming the Mortgagee as a loss
payee, on all buildings, fixtures, and other improvements against loss or damage by fire or
other risk or casualty; that the Mortgagor will maintain liability insurance; that the Mortgagor will
obtain flood insurance at any time it is determined that any building, fixture, or other
improvement is located, in whole or in part, within a flood hazard area; that the Mortgagor will
pay all premiums and charges on all such insurance when due; and that the Mortgagor will
provide Mortgagee with satisfactory evidence of all such insurance upon request. All such
insurance shall be in such forms, with such companies, and in such amounts as shall be
satisfactory to the Mortgagee.
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This Mortgage is also given to secure (a) the full and complete payment of any and all
advances, future advances, and other value given from the Mortgagee to the Mortgagor,
including, without limitation, any and all amounts that the Mortgagee expends or otherwise
disburses for the benefit of the Mortgagor or the Real Property, for the protection of the Real
Property, or for the protection or enforcement of the Mortgagee's rights under the foregoing
Personal Guaranty, Licensing Agreement, and this Mortgage; (b) the full and complete payment
of any and all costs and attorney's fees, including, without limitation, attorney's fees on appeal.
1. That the Mortgagor has good and marketable title to the Real Property; that the
Mortgagor owns the Real Property in fee simple; that the Real Property is free from any and all
mortgages, deeds of trust, liens, security interests, financing statements, fixture filings, taxes,
levies, assessments, and other encumbrances of whatever kind or nature; provided, however,
Mortgagor and Mortgagee understand and agree that all of the above described real estate is
already subject to certain prior mortgage(s) and other encumbrances of record, and therefore
this mortgage is subject to those prior mortgage(s) and other encumbrances of record; that the
Mortgagor has the lawful authority and right to convey and encumber the Real Property under
this Mortgage; and that the Mortgagor will defend and indemnify the Mortgagee against any and
all claims for relief, causes of action, or other demands, whether with or without suit, that relate
or otherwise pertain to the Real Property.
2. That the Mortgagor will keep the Real Property, including, without limitation, any and all
buildings, fixtures, and other improvements, now or hereafter existing, in good condition; that
the Mortgagor will not commit waste of the Real Property or allow or otherwise permit any
waste, impairment, or deterioration of the Real Property; that the Mortgagor will not commit any
nuisance on the Real Property or allow or otherwise permit any nuisance on the Real Property;
that the Mortgagor will not remove, demolish, or materially alter any building or other
improvement or allow or otherwise permit the removal, demolition, or material alteration of any
building or other improvement without the written consent of the Mortgagee; that the Mortgagor,
in a good and workmanlike manner, will promptly repair, replace, or otherwise restore any
building or other improvement that may be damaged or destroyed; that the Mortgagor will, in a
good and husbandlike manner, maintain and cultivate the Real Property, using customary and
reasonable methods for preserving the fertility and productivity thereof; and that the Mortgagor
will not change or otherwise alter the use of the Real Property or do or take any action that will
or may reduce the value of the Real Property.
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4. That the Mortgagor will not apply or enter into any federal, state, or other program of
whatever kind or nature that limits or otherwise restricts the use of the Real Property in any way
without the prior written consent of the Mortgagee.
5. That the Mortgagor will pay any and all debts, liabilities, and other obligations that are
secured hereby when due or otherwise upon demand; that the Mortgagor will pay any and all
taxes, assessments, levies, or other charges of whatever kind or nature against the Real
Property when due; and that the Mortgagor will not suffer or otherwise permit any lien,
assessment, or other charge or encumbrance of whatever kind or nature against the Real
Property that will take priority over or otherwise be superior to this Mortgage.
6. That, upon default, the Mortgagor will deliver and tender any and all rents, royalties, and
other amounts that relate or otherwise pertain to the Real Property to the Mortgagee, including,
without limitation, insurance proceeds, condemnation awards, and any and all payments of
whatever kind or nature; that the Mortgagee has the right to apply the foregoing to any portion
of the indebtedness that is secured hereby; and that the Mortgagee has the right to enter the
Real Property and to inspect the Real Property.
7. That the Mortgagor will comply with any and all laws, ordinances, statutes, regulations,
and other covenants, conditions, and restrictions that affect the Real Property or its use,
including, without limitation, all environmental laws; that the Mortgagor will not use or permit the
use of the Real Property for any unlawful or illegal purpose or for any purpose that poses an
unreasonable risk of harm or that impairs or may impair the value of the Real Property or any
part thereof; that the Mortgagor will not apply waste water or other waste or residue from any
treatment facility to the Real Property without the prior written consent of the Mortgagee; that
the Mortgagor will remedy any environmental contamination or violation of environmental laws
that may occur or be discovered in the future; that the Mortgagee has the right to access the
Real Property and to test and monitor the Real Property for compliance with all applicable laws;
that any and all inspections or tests made by the Mortgagee shall be for the Mortgagee's
purposes only and shall not be construed to create or otherwise impose any responsibility or
liability on the Mortgagee; that the Mortgagor will forward copies of any notices received from
any environmental agencies to the Mortgagee; that the Mortgagor will provide the Mortgagee
with copies of any and all tests, inspections, or other reports that relate or otherwise pertain to
the environmental status of the Real Property; and that the Mortgagor will indemnify and forever
hold the Mortgagee harmless from and against any and all claims for relief, causes of action, or
demands that relate or otherwise pertain to the Real Property, including, without limitation, any
and all costs and attorney's fees, including attorney's fees on appeal.
8. That neither the Mortgagor nor any prior owner of the Real Property has caused,
created, suffered, or otherwise permitted conditions on the Real Property that may give rise to
environmental liability; that no enforcement actions are pending or threatened; that no
underground tanks are located on the Real Property; and that no underground tanks have been
previously located on the Real Property.
9. That the Mortgagor will pay any and all assessments, levies, or other charges for the
water rights that relate or otherwise pertain to the Real Property when due; and that the
Mortgagor will do and take any and all actions that are necessary to perfect and maintain such
water rights.
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10. That the Real Property is liable for the entire indebtedness that is secured by this
Mortgage, including, without limitation, any and all debts, liabilities, or other obligations, any and
all advances, future advances, and other value, and any and all amounts or other charges of
whatever kind and nature; that the Mortgagee has the right to release or otherwise discharge
this Mortgage at any time, with or without notice in advance, without releasing or otherwise
discharging the liability or responsibility of any third party, including, without limitation, any
personal guarantor; and that the Mortgagee has the right to release or otherwise discharge any
or all of the Real Property that is subject to this Mortgage at any time, with or without notice,
without releasing or otherwise discharging the balance or remainder of the Real Property that is
subject to this Mortgage or the liability or responsibility of any third party, including, without
limitation, any personal guarantor.
11. That, in the event of any default under this Mortgage, the Licensing Agreement, or the
Personal Guaranty of M. Lee Schwab to the Mortgagee, the Mortgagee may, at its option, (a)
demand the full and immediate payment of the Personal Guaranty or the Licensing Agreement;
(b) demand the full and immediate payment of the entire indebtedness or any portion thereof
that is secured by this Mortgage, including, without limitation, any and all debts, liabilities, or
other obligations and any and all amounts or other charges of whatever kind and nature; (c)
perform any act for or on behalf of the Mortgagor; (d) pay or otherwise advance any amount for
or on the account of the Mortgagor; (e) do or take any and all actions that are necessary to
protect or otherwise enforce the Mortgagee's rights against the Real Property and /or under the
Personal Guaranty, the Licensing Agreement, or this Mortgage. The foregoing rights and
remedies are non exclusive. The foregoing rights and remedies and any and all other rights
and remedies of the Mortgagee are cumulative and may be exercised simultaneously.
12. That, if the Mortgagor is in default under this Mortgage, or if the Mortgagor breaches,
fails to perform, or otherwise violates any term or condition of this Mortgage, the Mortgagee
may, without notice to or consent from the Mortgagor, perform, execute, or otherwise complete
such term or condition.
13. That the Mortgagor shall be in default if (a) the Mortgagor breaches, fails to perform, or
otherwise violates any term or condition of this Mortgage; (b) the Mortgagor contracts or sells,
conveys, grants, assigns, or otherwise transfers any portion of the Real Property or any portion
of the Mortgagor's right, title, and interest in such Real Property to any third party or any other
person or entity, whether voluntarily, by operation of law, or otherwise; (c) a receiver or trustee
is appointed for or over the Real Property or any portion thereof; (d) any proceeding or action is
commenced or otherwise filed under the bankruptcy laws or any insolvency laws by or against
the Mortgagor; (e) the Mortgagor becomes insolvent; (f) any proceeding or action is
commenced or otherwise filed to foreclose or otherwise enforce any mortgage, lien, security
interest, or other encumbrance against the Real Property or any portion thereof; or (g) the
Mortgagee, in good faith, believes or otherwise deems itself to be insecure.
14. That, upon default, any amount that is secured by this Mortgage, including, without
limitation, any and all debts, liabilities, or other obligations, any and all advances, future
advances, and other value, and any and all amounts or other charges of whatever kind and
nature, shall accrue interest at the rate of 12.0 percent per annum from the date of default
thereof until paid in full.
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15. That no amendment or other modification or change of this Mortgage is valid, effective,
or otherwise enforceable unless the Mortgagor and the Mortgagee execute the applicable
amendment or other modification or change in writing.
16. That the Mortgagor shall immediately correct the legal description of the Real Property
in this Mortgage if such legal description is incorrect or otherwise invalid or unenforceable.
17. That the Mortgagor shall bear all risk of loss of the Real Property.
18. That the Mortgagor is subject to the jurisdiction of the state of Wyoming; that the state
of Wyoming has jurisdiction over the subject matter of this Mortgage; and that the proper venue
of any and all claims for relief or other causes of action that arise in connection with, that
proximately result from, or that relate or otherwise pertain to this Mortgage is Lincoln County,
Wyoming.
19. That the laws of the state of Wyoming govern this Mortgage, including, without
limitation, its interpretation and construction.
20. That no waiver of any right, remedy, or other option of the Mortgagee is valid, effective,
or otherwise enforceable against the Mortgagee unless the Mortgagor and the Mortgagee
execute a waiver of such right, remedy, or other option in writing; that any act or other decision
of the Mortgagee not to exercise any right, remedy, or other option shall not bar, estop, or
otherwise preclude the Mortgagee from exercising such right, remedy, or other option in the
future; and that the failure or omission of the Mortgagee to exercise any right, remedy, or other
option shall not bar, estop, or otherwise preclude the Mortgagee from exercising such right,
remedy, or other option in the future.
21. That this Mortgage is binding upon the Mortgagor, including the Mortgagor's successors
and assigns, and that this Mortgage shall inure to the benefit of the Mortgagee, including the
Mortgagee's successors and assigns. The Mortgagor cannot assign or otherwise transfer this
Mortgage to any third party or to any other person or entity without the written consent of the
Mortgagee; in this regard, the Mortgagor may assign or otherwise transfer this Mortgage if the
Mortgagee agrees and duly approves and consents to the assignment or transfer in advance
and in writing. The Mortgagee may assign or otherwise transfer this Mortgage without the
consent of the Mortgagor.
22. That, if the Mortgagee incurs any costs or attorney's fee to protect or otherwise enforce
its rights under this Mortgage or the Promissory Note, whether with or without suit, the
Mortgagor agrees to reimburse the Mortgagee and to pay such costs and /or attorney's fee,
including, without limitation, attorney's fees on appeal.
23. That this Mortgage and the covenants, warranties, representations, and agreements
herein shall not merge, extinguish or otherwise cease to exist because of foreclosure, transfer
of the Real Property, or otherwise.
24. That this Mortgage and the covenants, warranties, representations, and agreements
herein shall remain in full force and effect until fully performed.
25. That the Mortgagor will execute any and all instruments or other documents that the
Mortgagee deems necessary to implement, enforce, or otherwise effectuate this Mortgage.
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26. LEFT BLANK INTENTIONALLY.
Maci Management Services LLC
2345 North Woodruff Avenue
Idaho Falls, ID 83401
0055.
27. That information concerning this Mortgage may be obtained from the Mortgagee at the
following address:
28. That this Mortgage is sufficient as a financing statement; and that this Mortgage shall be
filed for record in the real estate records.
29. That any notice under this Mortgage shall be served by delivering such notice to the
party in person or by sending such notice to the party by first class mail, postage prepaid. If a
notice is served by first class mail, the notice shall be sent to the address of such party in this
Mortgage or to such other address as the party hereafter designates in writing. The Mortgagor
agrees to notify the Mortgagee in writing of any change in the Mortgagor's name, address, or
other applicable information. The Mortgagee agrees to notify the Mortgagor in writing of any
change in the Mortgagee's name, address, or other applicable information.
30. That "time is of the essence."
The Mortgagor hereby acknowledges and agrees that the Mortgagor has read,
understands, approves, accepts, and agrees to this Mortgage.
(END)
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IN WITNESS WHEREOF, Mortgagor has executed this Mortgage as of the 29th day of
January, 2013.
STATE OF WYOMING
ss.
COUNTY OF LINCOLN
GERALD L. GOULDING NOTARY PUBLIC
County of State of
Lincoln Wyoming
My Commission Expires May 2, 2015
My commission expires: May 2, 2015.
By:
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The foregoing Mortgage was acknowledged before me by Marvin Lee Schwab this 29th day
of January, 2013.
Witness my hand and official seal.
TARY PUBLIC
Exhibit A
All of Lot 4 of the Twin Cliffs Subdivision, being located in Lincoln County, Wyoming, filed
December 7, 1990, as Instrument No. 726579 in the Office of the Lincoln County Clerk.
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