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HomeMy WebLinkAbout972345"Assignee COLLATERAL ASSIGNMENT OF PROMISSORY NOTE 0 7 9 0 THIS COLLATERAL ASSIGNMENT OF PROMISSORY NOTE, is dated as of the 18th day of July, 2013, from Salt River Motor, Inc, a Wyoming closed corporation, (hereinafter referred to as "Assignor to 1st Bank, a division of Glacier Bank, (hereinafter referred to as RECEIVED 7/31/2013 at 11:18 AM RECEIVING 972345 BOOK: 816 PAGE: 790 WITNESSETH: JEANNE WAGNER LINCOLN COUNTY CLERK, KEMMERER, WY WHEREAS, Assignor is the owner of that certain Promissory Note dated February 28, 2006 in the face amount of Six Hundred Thousand Dollars and .00 /100 ($600,000.00), together with interest thereon, at the interest rates specified in said Promissory Note, which Promissory Note was given by Michael Lloyd McDonald and Mary Kaylene McDonald, husband and wife, a copy of said Promissory Note is attached hereto marked Exhibit "A" and by this reference made a part hereof, (hereinafter referred to as "McDonald Promissory Note and WHEREAS, the McDonald Promissory Note was secured by that certain mortgage dated August 23, 2006 from Michael Lloyd McDonald and Mary Kaylene McDonald, husband and wife, as Mortgagors to Salt River Motor, Inc, a Wyoming closed corporation, which mortgage was recorded on August 25, 2006 as Receiving No. 921704 in Book 631, Page 535 in the office of the Lincoln County Clerk, which mortgage is hereinafter referred to as the "McDonald Mortgage" and a copy of which is attached hereto marked Exhibit "B" and by this reference made a part hereof; and WHEREAS, pursuant to a loan agreement between Assignor and Assignee, Assignee has agreed to loan Assignor the sum of One hundred Twenty Five Thousand Nine Hundred Fifty Seven and 50 cents ($125,957.50) according to the terms of that certain Promissory Note between Assignor and Assignee, a copy of which is attached hereto marked Exhibit "C" and by this reference made a part hereof, (hereinafter referred to as the "Neuenschwander Promissory Note and WHEREAS, in order to induce Assignee to make the loan above- referred to, Assignor is desirous of assigning to Assignee, as additional security for the loan as evidenced by the Neuenschwander Promissory Note, all present and future interest and payments that are due and payable to Assignor, pursuant to the terms of the McDonald Promissory Note, as they become due and payable to Assignor under the terms of the McDonald Promissory Note. NOW THEREFORE, IN CONSIDERATION OF THE ABOVE, and other good and valuable consideration, the receipt of which is hereby acknowledged by Assignee, Assignor hereby covenants, promises and agrees as follows: 1) Assignor, as additional collateral, does hereby assign, transfer, and set over unto Assignee, and Assignee's successors or assigns, all of the payments that are due and owing to Assignor under the terms of the McDonald Promissory Note as they are paid, as well as all monies due and all payments that are due and owing to Assignor under the terms of the McDonald Promissory Note, together with any and all rights and remedies which assign or may have against Michael Lloyd McDonald and Mary Kaylene McDonald, husband and wife, individually or collectively, pursuant to the terms of the McDonald Promissory Note, together with all rights that the Assignor has under the McDonald Mortgage that was given to secure the McDonald Promissory Note, and in the event that there is a default in the payment of the McDonald Promissory Note, then Assignor agrees to assign any and all rights that the Assignor has to that certain McDonald Mortgage, which mortgage was given to secure the payments that are due and owing under the McDonald Promissory Note to Assignor. 2) This Assignment is given to additionally secure: (a) payment of the loan and all interest and principal from time to time outstanding thereon as evidenced by the Neuenschwander Promissory Note (together with all renewals, extensions, amendments, increases or modifications thereof) and the payments of all other sums which Assignor is or may from time to time be obligated to pay or cause to be paid to the Assignee; and (b) performance of all obligations thereunder and under this agreement and any other instrument evidencing or securing the Neuenschwander Promissory Note, any renewals and extensions thereof, and any indebtedness represented thereby. 3) Assignor hereby represents, warrants and agrees that: a) Assignor has the right, power and capacity to make this Assignment, and that no person, firm or corporation other than Assignor has or will have any right, title or interest in or to the payments due and owing under the McDonald Promissory Note; b) Assignor will, at Assignor's sole cost and expense, perform and discharge all of the obligations and undertakings that it is obligated to under the McDonald Promissory Note, as well as the mortgage that was given to secure the McDonald Promissory Note. Assignor will use all reasonable efforts to enforce or secure the performance of each and every obligation and undertaking under the terms of the McDonald Promissory Note and the Mortgage given to secure said Promissory Note; 0791 c) Assignor will not, without the prior written consent of Assignee: (i) pledge, transfer, mortgage or otherwise encumber or assign the McDonald Promissory Note or the McDonald Mortgage; (ii) waive, excuse, condone or in any manner release or discharge any of the obligations that are due and owing under the McDonald Promissory Note, or the McDonald Mortgage; (iii) disaffirm, cancel, terminate or consent to any discharge or release of the McDonald Promissory Note or McDonald Mortgage; and (iv) modify, extend, or any other way, alter the terms of any of the McDonald Promissory Note or McDonald Mortgage, so as to reduce or diminish or postpone any of the payments due and owing under said agreement. d) Any default by Assignor in the performance of any of the obligations or undertakings hereunder shall constitute and be deemed to be an event of default under this agreement and the Neuenschwander Promissory Note, so as to entitle Assignee to exercise any and all of the rights and remedies thereunder, including the right to declare all sums payable under the Neuenschwander Promissory Note immediately due and payable without further notice or demand. e) Assignor hereby represents that there are no existing defaults under any of the McDonald Promissory Note or McDonald Mortgage, and Assignor has not performed any act or executed any instrument which might prevent Assignee from operating under any of the terms and provisions hereof or which would limit Assignee in any such operation. 4) This agreement shall not be deemed or construed to constitute Assignee as mortgagee in possession of the property or to obligate Assignee to take any action hereunder, to incur any expenses or to perform or discharge any obligation, duty or liability hereunder or under the agreement. 5) Until the loan and all indebtedness evidenced by the Neuenschwander Promissory Note shall have been paid in full, Assignor will from time to time execute and deliver to Assignee upon demand any and all writings that Assignee may reasonably deem necessary or desirable to carry out the purpose and intent hereof, or to enable Assignee to enforce any right or rights hereunder. Collateral Assignment of Promissory Note Page 3 0792 Collateral Assignment of Promissory Note Page 4 6) Assignor agrees that all of the payments that are due and owing under the McDonald Promissory Note shall be paid directly to the bank as they become due and owing under the terms of the McDonald Promissory Note until all obligations of Assignor are paid to Assignee under the terms of the Neuenschwander Promissory Note. When all payments due and owing to Assignee under the terms of the Neuenschwander Promissory Note are paid in full, then the Assignee agrees to execute a release of its rights under the terms of this agreement. 7) Anything to the contrary notwithstanding: (a) Assignor hereby assigns to Assignee all awards made hereafter to Assignor in any court proceeding involving any of the rights due and owing under the McDonald Promissory Note or McDonald Mortgage, in any bankruptcy, insolvency, or any reorganization proceeding in any state or federal court, and any and all payments made pursuant to said agreement; and (b) Assignor hereby appoints Assignee as Assignor's irrevocable attorney -in -fact to appear in any action and /or to collect any such awards or payments; and any such assignment and appointment to become operative upon the occurrence of any event of default, and to remain in full force and effect so long as any such event of default continues. 8) Assignee shall not be obligated to perform or discharge any obligation or duties to be performed or discharged by Assignor under any of the McDonald Promissory Note or McDonald Mortgage; and Assignor hereby agrees to indemnify Assignee for, and to save Assignee harmless from, any and all liability arising from any of the obligations that Assignor has pursuant to the McDonald Promissory Note or McDonald Mortgage. This Assignment shall not place responsibility for the control, care, management, or any other obligations associated with the McDonald Promissory Note or McDonald Mortgage, upon the Assignee, or make Assignee responsible or liable for any negligence in the management, operation, or other action associated with said agreement; provided, however, the aforesaid indemnity and save harmless clause of Assignor shall not apply to any liability caused by Assignee's negligence or willful misconduct associated with this agreement. 9) The failure of Assignee to enforce any of the terms, covenants, or conditions hereof shall not be construed or deemed to be a waiver of any rights or remedies hereunder. Assignee shall have the full right, power and authority to enforce this Assignment, or any of the terms, convents or conditions hereof, at any time or times that Assignee shall deem fit. 10) Any notice required or permitted to be given hereunder shall be in writing and 0793 0794 shall be considered properly given if mailed by first -class United States mail, postage prepaid, registered or certified, with return receipt requested, or by delivering such in person to the intended addressee or by prepaid telegram. Notice so mailed shall be effective upon the expiration of three (3) business days after its deposit. Notice given in any other manner shall be effective only if and when received by addressee. For purposes of notice, the addresses of the parties shall be as set forth below; provided, however, that any party shall have the right to change such party's address for notice hereunder to any other location within the continental United States by giving of thirty (30) days' notice to all other parties in the manner set forth hereinbelow: If to Assignor: If to Assignee: Salt River Motor, Inc. Darin Neuenschwander P.O. Box 1735 Afton, WY 83110 1 Bank P.O. Box 1620 Afton, WY 83110 11) The full performance by Assignor of its obligations under the terms of the Neuenschwander Promissory Note and the obligations specified therein shall render this Assignment void. 12) This Assignment applies to and binds the parties hereto and their respective heirs, administrators, executors, successors and assigns. Any provision in any other agreement creating rights in Assignee other than those created herein, shall be deemed incorporated herein by reference, and made a part hereof for all purposes. 13) This Assignment shall be governed by and construed in accordance with the laws of the State of Wyoming 14) The parties agree that in the event any action or court proceeding is brought by either party to enforce the obligations under this Assignment, the prevailing party shall be entitled to recover any reasonable attorney's fees, together with court and collection costs. IN WITNESS WHEREOF, Assignor and Assignee have caused this instrument to be executed as of the date first above written. Collateral Assignment of Promissory Note Page 5 STATE OF WYOMING )ss. COUNTY OF LINCOLN By: The foregoing instrument was acknowledg President of Salt River Motor, Inc, this day o BARBARA MARTIN NOTARY PUBLIC County of State of Lincoln Wyoming MY COMMISSION EXPIRES: April 30, 2016 STATE OF WYOMING )ss. COUNTY OF LINCOLN WITNESS my hand and official seal. WITNESS my hand and official seal. ASSIGNOR: Sal Ri r Joe rin Neu schwander Title: President ASSIGNEE: lst BANK, a division of Glacier Bank ristan Smith Title: Loan Officer re by Joel Darin Neuenschwander, 2013. The foregoing instrument was acknowledged before me by Tristan Smith, Loan Officer 1 Bank, a division of Glacier Bank, thisi l day ofd, 2013. Collateral Assignment of Promissory Note Page 6 0795 TERESA BRUCE NOTARY PUBLIC County of Lincoln State of Wyoming My Commission Expires May 7, 2017 PROMISSORY NOTE ANIOUNT: 5600 000.00 DATE_ I" r I �F P.UAn�I 2006 FOR VALUE RECE.IVED, MICHAEL .LLOYD MCDONALD and MARY I(AYLENE MCDONALD, .Husband and Wife, of 170 Braves .Rd. Afton Lincoln oln County, Wyoming, and NII(M, HO.I...DINGS, LLC, a Wyoming Close Limited Liability Company,, (Maker),.promise to pay to the order of SALT RIVER MOTOR, INC. a Wyoming Close Corporation, or its assigns, the sum of Six Hundred Thou.sa.nd Dollars ($600,000.00). This Promissory Note (Note) shall bear intei ;st at the rate of six and one- 1G half percent (6.5 per annum for a term of seventy-two (7 :X) months and at the rate of seven percent (7 or one percent: (1 %v) over the Wall Stree'.:Iournal published prime rate ate, for each subsequent year, following the initial tern] of six (6) years, whichever rage is greater, for the term of one hundred eighty (180) months. The total term of the Note shall be twenty one (21) years. For the first six (6) years of the term of the.Note the Maker may pay only the interest on the note on a monthly basis. Said payments shall be Three Thousand Two Hundred Fifty Dollars ($3,250.00) per month for seventy-two (72) months, commencing b March 15, 2006, and due on the 15` of each subsequent inpnt:h until February 15, 2012, inclusive. Maker may make additional payments during the first: seventy two (72) months which shall be applied to principal. After seventy trvi� months, t:he >Note shall be paid at the rninimmn rate of Five Thousand Three Hundred Ninety -Three Dollars ($5,39100), principle and interest, per month commencing March 15, 2012, and continuing on the same date of each succeeding mon1;1] for fifteen (15) years until the balance of the promissory note, together with interest thereon shall have been paid.. Payments shall be first applied to interest and then the reduction of principle. Prepayments may be.rnade a1: any time; early payments will not, unless agreed by.,the.holder in writing, relieve the undersigned of its obligation to continue to make payments of $5,393.00 monthly thereafter. Notwithstanding the foregoing, the Maker may not prepay the full amount of this .promissory note prior to seven years from the date :of this promissory note. SALT RIVER MOTOR, INC. MCDONALD. PROMISSORY NOTE January 1.6, 2006 Page 1 of 3 I yr; fr L ,:y l> ,.:�c' sir l�tati. I 079 In.case,the Maker shall fail to pay any installment payment at the time the same is due, and shall fail to cure said default within 10 days after receipt of written notice from Holder, the whole of the principle sum then remaining unpaid, together with the interest that shall have accrued thereon, shall at the election of the holder of this not- c become at once due and payable. Notice of non payment, dishonor, demand, and protest shall be provided to the Maker at the above address. Dated this day of STATE OF WYOMING COUNTY OF LINCOLN My Commission Expires: ss. WITNESS my hand and official seal. SALT RIVER MOTOR, INC. MCDONALD PROMISSORY NOTE January 16, 2006 Page 2 of 3 _erdrst- covt.,, 2006 MICHAEL LLOYD M DOC NALD .:<4,e, 9 /1 LAVE MCDONALD MKM'HOL J a:TN'CY v LC ty L y�,a By: foregoing instrument was acknowledged before me by MICHAEL LLOYD MCDONALD and MARY KAYLENE MCDONALD, Husband and Wife, Maker, this P' day of February, 2006. NOTARY PUBLI H EJDI BROWN NOTARY PUBLIC County ofi State of Lincoln Wyoming My Commisefoh Expires August 5, 2009 b awe ++r hvpar�.Rra.w6,a,4a. w4 797 STATE OF WYOMING COUNTY OF LINCOLN SS. 7 The foregoing instrument was acknowledged before me this day of February, 2006, by MICHAEL LLOYD MCDONALD and MARY KAYLENE MCDONALD, for MKM HOLDINGS, LLC, My Commission Expires: SALT RIVER MOTOR, INC. MCDONALD PROMISSORY NOTE' January 16, 2006 Page 3 of 3 NOTARY PUBT:fC 1-18DI BROWN -NOTARY PUBUO e County of of Stat Lincoln (111- 4 i f Wyoming My Commission Expires August 62009 798 advertisement and sale, of the p Out of the proceeds of any fore MORTGAGE 0799 MICHAEL LLOYD MCDONALD and MARY KAYLENB MCDONALD, Husband and Wife, Mortgagors, Lo secure the payment of Six Hundred Thousand Dollars clue with interest thereon at the rate of six and one-half percent (6.5%) per Year, for the first seventy-two months of the term of the promissory note, dated February 28, 2006, and at the rate of seven percent (7%) per year, one percent (1%) over the Wall Street Journal published prime rate, whichever is greater, for the term of the following one hundred eighty months, .(said sum and the interest thereon, being referred. RIVER MOTOR, INC, a Wyoming Close Corporation, and its successors or assigns, Mortgagee, of Lincoln County, Wyoming to-wit: Hothe and Real Property located at 170 Braves Rd. Afton, Lincoln County, Wyoming which is part of Lot 4 of Wild Flower Estates, Lincoln County, Wyoming as 046tibed on the official Plat No. 198-13 filed on September 26, 2003 as trument No.„ 893865 of the records of the Lincoln County Clerk. If default occurs in the payment of the indebtednes.s or in the payment of any installment thereof; or if default occurs in any of the covenants and agreements hereof, and Mortgagor fails to remedy such default within 10 day of receipt of written notice from Mortgagee, then the whole indebtedness shall, at mOrtgagee's option, become due and payable forthwith, :and mortgagee may foreclose thisportgage either by o as the indebtedness), payable in accordance with the provisions of that certain romissory note, dated February 28, 2006 hereby mortgage and warrant to SALT remises as provided by statt4e, or by an action in equity. closure sale, mortgagee retain or.receive all sums due to it hereunder, and costs of foreclosure andsale including reasonable attorney fees, the same to be taxed as costs in any equitable action brought to foreclose this mortgage. To fully assure mortgagee the benefit of the security interests in the premises granted to it hereunder, mortgagors hereby assign to rnoqggee all rents hereafter payable for the use and occupancy of the premises by any persoii,in possession thereof with mortgagors' consent. If default occurs in any of the covenants and agreements herein contained, whether or not rnortga.gee elects to foreclose mortgage on account thereof, Mortgage 1VIKM HOLDINGS, LLC. Page 1 of 2 REC 8/ t 25 1 21 /20 0 1 0 4 :15 AM BOOK: 631 PAGE: 535 JEANNE WAGNER 1 inure M rni INITY PPIK KFMME-IREF-. mortgagee shall at once be entitled, and is hereby authorized, to collect the rents f e from 0 8 0 0 premises and to apply the same. to the payment of the indebtedness secured hereby until such default is remedied. Hereby releasing and waiving all rights udder and by virtue of the homestead exemption laws of the Stale of Wyoming. This Mortgage shall be subordinate only to the Mortgagors' existing first mortgage to First National Bank West recorded at .l3ook #623 Page #257 in the records of the Lincoln County Clerk and Recorder, that encumbers the above property. Notwithstanding any of the :foregoing, upon satisfaction of the promissory note to First National Bank West in the amount: of $284,000.00 dated June 13, 2006, Mortgagee b b agrees to release this Mortgage by filing the necessary documents with the ,Lincoln County Clerk and Recorder and this Mortgage•shall be of. 110 further force and effect. WITNESS our hands this i' clay of >tl�R r1 2006. My Commission Expires: Mortgage NI.K vI HOLDINGS, l_ LC Page 2'01'2 M:ICIIAEI •LLOYD MCDONALD .!E M. 'D NAT. STATE OF WYOMING SS. COUNTY OF LINCOLN The foregoing instrument was acjtllowledged before me this 't: day of 2006, by 'MICI:IAE:L LLOYD MCDONALD AND MARY KAY MCDONALD, Husband and Wife. HEIDI BROWN NOTARY PUBUO County oo t :F,, State o Lincoln Wyoming N1y Comrni ssion Expires August 5, 200 >.:P 'i tr »<::s 2.5 95':T ":'rrs:la I'. `x:2'0'Iz' »?s ill f: >:::s: :0 [:.:7 20 "i'3. >:L: a n<: :a ::s >:s 6.10 6:176.. s >s 'u >:::.'Ciilriis >s ...4A: /:2:oa »;s: c01iai >:;.:;8 D: .`c ?i>: 1:1cfi '5l References in the boxes above are for Lender's use only and do not limit the applicability of this document to any particular loan or item. Any item above containing has been omitted due to text length limitations. EXHIB± J. PROMISSO... .JOTE rower: SALT RIVER MOTOR, INC DARIN NEUENSCHWANDER 432 CMR LANE ETNA, WY 83118 Lender: 1st Bank, Division of Glacier Bank Afton 314 South Washington St. P.O. Box 1620 Afton, WY 83110 (307) 885 -3500 rincipal Amount: $125,957.50 Date of Note: July 18, 2013 ROMISE TO PAY. SALT RIVER MOTOR, INC; and DARIN NEUENSCHWANDER "Borrower jointly and severally promise to pay to 1st Bank, ivision of Glacier Bank "Lender or order, in lawful money of the United States of America, the principal amount of One Hundred Twenty -five housand Nino Hundred Fifty -seven 50/100 Dollars ($125,957.50) or so much as may be outstanding, together with interest on the unpaid utstanding principal balance of each advance, calculated as described in the "INTEREST CALCULATION METHOD" paragraph using an interest to of 6.500% per annum based on a year of 360 days. Interest shall be calculated from the date of each advance until repayment of each dvance. The interest rate may change under the terms and conditions of the "INTEREST AFTER DEFAULT" section. AYMENT, Borrower will pay this loan in full immediately upon Lender's demand. If no demand is made, Borrower will pay this loan in one ayment of all outstanding principal plus all accrued unpaid interest on October 17, 2013. In addition, Borrower will pay regular monthly ayments of all accrued unpaid interest due as of each payment date, beginning August 18, 2013, with all subsequent interest payments to be ue on the same day of each month after that. Unless otherwise agreed or required by applicable law, payments will be applied first to any ccrued unpaid interest; then to principal; then to any late charges; and then to any unpaid collection costs. Borrower will pay Lender at ender's address shown above or at such other place as Lender may designate in writing. IAXIMUM INTEREST RATE. Under no circumstances will the interest rate on this Note exceed the lesser of 18.000% per annum or the taximum rate allowed by applicable law. TEREST CALCULATION METHOD. Interest on this Note is computed on a 365/360 basis; that is, by applying the ratio of the interest rate ver a year of 360 days, multiplied by the outstanding principal balance, multiplied by the actual number of days tho principal balance is utstanding. All interest payable under this Note is computed using this method. This calculation method results in a higher effective interest ate than the numeric interest rate stated in this Note. 'REPAYMENT. Borrower agrees that all loan fees and other prepaid finance charges are earned fully as of the date of the loan and will not be ubject to refund upon early payment (whether voluntary or as a result of default), except as otherwise required by law. Except for the oregoing, Borrower may pay without penalty all or a portion of the amount owed earlier than it is due. Early payments will not, unless agreed o by Lender in writing, relieve Borrower of Borrower's obligation to continue to make payments of accrued unpaid interest. Rather, early )ayments will reduce the principal balance due. Borrower agrees not to send Lender payments marked "paid in full "without recourse or similar language. If Borrower sends such a payment, Lender may accept it without losing any of Lender's rights under this Note, and Borrower vill remain obligated to pay any further amount owed to Lender. All written communications concerning disputed amounts, including any check )r other payment instrument that indicates that the payment constitutes "payment in full" of the amount owed or that is tendered with other onditions or limitations or as full satisfaction of a disputed amount must be mailed or delivered to: 1st Bank, Division of Glacier Bank; Afton; 314 South Washington St.; P.O. Box 1620; Afton, WY 83110. _ATE CHARGE. If a payment is 10 days or more late, Borrower will be charged 5.000% of the unpaid portion of the regularly scheduled )ayrnent or $10.00, whichever is greater. NTEREST AFTER DEFAULT. Upon default, including failure to pay upon final maturity, the total sum due under this Note will continue to accrue nterest at the interest rate under this Note. 0801 DEFAULT. Each of the following shall constitute an event of default "Event of Default under this Note: Payment Default. Borrower fails to make any payment when due under this Note. Other Defaults. Borrower fails to comply with or to perform any other term, obligation, covenant or condition contained in this Note or in any of the related documents or to comply with or to perform any term, obligation, covenant or condition contained in any other agreement between Lender and Borrower, Default in Favor of Third Parties. Borrower or any Grantor defaults under any loan, extension of credit, security agreement, purchase or sales agreement, or any other agreement, in favor of any other creditor or person that may materially affect any of Borrower's property or Borrower's ability to repay this Note or perform Borrower's obligations under this Note or any of the related documents. False Statements. Any warranty, representation or statement made or furnished to Lender by Borrower or on Borrower's behalf under this Note or the related documents is false or misleading in any material respect, either now or at the time made or furnished or becomes false or misleading at any time thereafter. Insolvency. The dissolution or termination of Borrower's existence as a going business, the insolvency of Borrower, the appointment of a receiver for any part of Borrower's property, any assignment for the benefit of creditors, any type of creditor workout, or the commencement of any proceeding under any bankruptcy or insolvency laws by or against Borrower. Creditor or Forfeiture Proceedings. Commencement of foreclosure or forfeiture proceedings, whether by judicial proceeding, self -help, repossession or any other method, by any creditor of Borrower or by any governmental agency against any collateral securing the loan. This includes a garnishment of any of Borrower's accounts, including deposit accounts, with Lender. However, this Event of Default shall not apply if there is a good faith dispute by Borrower as to the validity or reasonableness of the claim which is the basis of the creditor or forfeiture proceeding and if Borrower gives Lender written notice of the creditor or forfeiture proceeding and deposits with Lender monies or a surety bond for the creditor or forfeiture proceeding, in an amount determined by Lender, in its sole discretion, as being an adequate reserve or bond for the dispute. Events Affecting Guarantor. Any of the preceding events occurs with respect to any guarantor, endorser, surety, or accommodation party of any of the indebtedness or any guarantor, endorser, surety, or accommodation party dies or becomes incompetent, or revokes or disputes the validity of, or liability under, any guaranty of the indebtedness evidenced by this Note. Change In Ownership. Any change in ownership of twenty -five percent (25 or more of the common stock of Borrower. Adverse Change. A material adverse change occurs in Borrower's financial condition, or Lender believes the prospect of payment or performance of this Note is impaired. Insecurity. Lender in good faith believes itself insecure. LENDER'S RIGHTS. Upon default, Lender may declare the entire unpaid principal balance under this Note and all accrued unpaid interest immediately due, and then Borrower will pay that amount. ATTORNEYS' FEES; EXPENSES. Lender may hire or pay someone else to help collect this Note if Borrower does not pay. Borrower will pay Lender that amount. This includes, subject to any limits under applicable law, Lender's reasonable attorneys' fees and legal expenses, whether or not there is a lawsuit, including without limitation all reasonable attorneys' fees and legal expenses for bankruptcy proceedings (including efforts to modify or vacate any automatic stay or injunction), and appeals. If not prohibited by applicable law, Borrower also will pay any court costs, in addition to all other sums provided by law. GOVERNING LAW. This Note will be governed by federal law applicable to Lender and, to the extent not preempted by federal law, the laws of the State of Wyoming without regard to its conflicts of law provisions. This Note has been accepted by Lender in the State of Wyoming. CHOICE OF VENUE. If there is a lawsuit, Borrower agrees upon Lender's request to submit to the jurisdiction of the courts of Lincoln County, State of Wyoming. DISHONORED ITEM FEE. Borrower will pay a fee to Lender of $25.00 if Borrower makes a payment on Borrower's loan and the check or preauthorized charge with which Borrower pays is later dishonored. RIGHT OF SETOFF. To the extent permitted by applicable law, Lender reserves a right of setoff in all Borrower's accounts with Lender (whether checking, savings, or some other account). This includes all accounts Borrower holds jointly with someone else and all accounts Borrower may open in the future. However, this does not include any IRA or Keogh accounts, or any trust accounts for which setoff would be prohibited by law. Borrower authorizes Lender, to the extent permitted by applicable law, to charge or setoff all sums owing on the indebtedness against any oan No: 61016176 (Continued) Page 2 nd all such accounts, and, at Lender's option, to administratively freeze all such accounts to allow Lender to protect Lender's charge and setoff ghts provided in this paragraph. :OLLATERAL. Borrower acknowledges this Note is secured by the following collateral described in the security instrument listed herein: ollateral described in a Commercial Security Agreement dated July 18, 2013. INE OF CREDIT. This Note evidences a straight line of credit. Once the total amount of principal has been advanced, Borrower is not entitled further loan advances. Advances under this Note may be requested either orally or in writing by Borrower or as provided in this paragraph. ender may, but need not, require that all oral requests be confirmed in writing. All communications, instructions, or directions by telephone or therwise to Lender are to be directed to Lender's office shown above. The following person or persons are authorized to request advances and uthorize payments under the line of credit until Lender receives from Borrower, at Lender's address shown above, written notice of revocation f such authority: DARIN NEUENSCHWANDER, President of SALT RIVER MOTOR, INC. Borrower agrees to be liable for all sums either: (A) dvanced in accordance with the instructions of an authorized person or (B) credited to any of Borrower's accounts with Lender. The unpaid 'rincipal balance owing on this Note at any time may be evidenced by endorsements on this Note or by Lender's internal records, including daily omputer print -outs. Lender will have no obligation to advance funds under this Note if: (A) Borrower or any guarantor is in default under the errns of this Note or any agreement that Borrower or any guarantor has with Lender, including any agreement made in connection with the igning of this Note; (B) Borrower or any guarantor ceases doing business or is insolvent; (C) any guarantor seeks, claims or otherwise ttempts to limit, modify or revoke such guarantor's guarantee of this Note or any other loan with Lender; (D) Borrower has applied funds irovided pursuant to this Note for purposes other than those authorized by Lender; or (E) Lender in good faith believes itself insecure. ;UCCESSOR INTERESTS. The terms of this Note shall be binding upon Borrower, and upon Borrower's heirs, personal representatives, uccessors and assigns, and shall inure to the benefit of Lender and its successors and assigns. 3ENERAL PROVISIONS. This Note is payable on demand. The inclusion of specific default provisions or rights of Lender shall not preclude .ender's right to declare payment of this Note on its demand. If any part of this Note cannot be enforced, this fact will not affect the rest of the slote. Lender may delay or forgo enforcing any of its rights or remedies under this Note without losing them. Each Borrower understands and agrees that, with or without notice to Borrower, Lender may with respect to any other Borrower (a) make one or more additional secured or insecured loans or otherwise extend additional credit; (b) alter, compromise, renew, extend, accelerate, or otherwise change one or more times he time for payment or other terms of any indebtedness, including increases and decreases of the rate of interest on the indebtedness; (c) exchange, enforce, waive, subordinate, fail or decide not to perfect, and release any security, with or without the substitution of new collateral; d) apply such security and direct the order or manner of sale thereof, including without limitation, any non judicial sale permitted by the terms )f the controlling security agreements, as Lender in its discretion may determine; (e) release, substitute, agree not to sue, or deal with any one tr more of Borrower's sureties, endorsers, or other guarantors on any terrns or in any manner Lender may choose; and (f) determine how, 'hen and what application of payments and credits shall be made on any other indebtedness owing by such other Borrower. Borrower and any )they person who signs, guarantees or endorses this Note, to the extent allowed by law, waive presentment, demand for payment, and notice of iishonor. Upon any change in the terms of this Note, and unless otherwise expressly stated in writing, no party who signs this Note, whether is maker, guarantor, accommodation maker or endorser, shall be released from liability. All such parties agree that Lender may renew or extend repeatedly and for any length of time) this loan or release any party or guarantor or collateral; or impair, fail to realize upon or perfect Lender's security interest in the collateral; and take any other action deemed necessary by Lender without the consent of or notice to anyone. All such parties also agree that Lender may modify this loan without the consent of or notice to anyone other than the party with whom the modification s made. The obligations under this Note are joint and several. 'RIOR TO SIGNING THIS NOTE, EACH BORROWER READ AND UNDERSTOOD ALL THE PROVISIONS OF THIS NOTE. EACH BORROWER A GREES TO THE TERMS OF THE NOTE. 3ORROWER ACKNOWLEDGES RECEIPT OF A COMPLETED COPY OF THIS PROMISSORY NOTE. 3ORROWER: SA R IT' yER MO OR, INC D;4f31N0 WANII>R;" of SALT RI ER MOTO•, INC DARTN- NEUEVSCHWANDER,.'I tliv LENDER: 1ST BANK, DIVISION OF GLACIER BANK T'RISTAN SMITH./ oan Officer PROMISSORY NOTE LASER PRO Coding, On, 17.7.20.010 Copy. Hn■l,n,l 1 inuneinl Snlulinns. Inn. 1997, 2013, All Ri01Hn Nwsn WV G:1111n1\F0ICFOLPL1020.FC 911.6711 96.677 0802