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HomeMy WebLinkAbout902055RECORDATION REQUESTED BY: Wells Fargo Bank, National Association Alton Business Banking Center 485 Washington MAC #C7826-011 Alton, WY 83114 WHEN RECORDED MAIL TO: Wells Fargo Bank. National Association BBG- Boise Loan Operations Center, MAC #U1851-015 3033 Elder STreet Boise, ID 83705 RECEIVED _l,',CbLd COUNTY CLERK 902055 ,., SPACE ABOVE THIS LINE IS FOR RECORDER'S USE ONLY CONSTRUCTION MORTGAGE THIS MORTGAGE dated August 4, 2004, is made and executed between R. Mike Lee and Patti Lee, also showq of record as R. Michael Lee and Patti D. Lee, husband and wife, as tenants by the entireties, whose address is 121 Wright Street #3, Thayne, WY 83127 (referred to below as "Grantor") and Wells Fargo Bank, National Association, whose address is 485 Washington, MAC #07826-011, Alton, WY 83114 (referred to below as "Lender"). GRANT OF MORTGAGE. For valuable consideration, Grantor mortgages and conveys to Lender all of Grantor's right, title, and interest in and to the following described real property, togetl~er with ali existing or subsequently erected or affixed buildings, improvements and fixtures; all easements, rights of way, and appurtenances; all water, water rights, watercourses and ditch rights '(including stock in utilities wid~ ditch or irrigation rights); and ali other rights, royalties, and profits relating to the real property, including without limitation all minerals, oil, gas, geothermal and similar matters, (tho "Real Property") located in Lincoln County, State of Wyoming: Lot 32 of Southbrook Ranches Subdivision, Lincoln County, Wyoming, according to that plat filed September 5, 1990 as Plat Nos. 335-1 and 335-2 in the Office of the Lincoln County Clerk. The Real Pro~perty or its address is commonly known as Southbrook Ranch Subdivision Lot 32, Thayne, WY 83127. The r~eal Property tax identification number is 34191040000200 CROSS-COLLATERALIZATION. In addition to the Note, this Mortgage secures all obligations, debts and liabilities, plus interest tbereoo, of Grantor to Lender, or any one or more of them, as well as all claims by Lender against Grantor or any one or more gl ti'leto, whether now existing or hereafter arising, whether related or unrelated to the purpose of the No[e, whether voluntary or otherwise, whether due or not due, direct or indirect, determined or undetermined, absolute or contingent, liquidated or unliquidated whether Grantor may be liable individually or jointly with others, whether obligated as guarantor, surety, accommodation party or od~erwise, and whether recovery upon such arlloun[s may be or hereafter may become barred by any statute of limitations, and whether the obligation to repay such amounts may be or herealter may become otherwise unenforceable. If the Lender is required to give notice of the righ[ to cancel under Truth in Lellding in connection with any additional loans, extensions of credit and other liabilities or obligations of Grantor to Lender, then tl~is Mortgage shall not secure additional toaus or obligations unless and until such notice is given· Grantor presently assigns to Lender all of Grantor's right, title, and interest in and to all present and future leases of the Property and all Rents from the Properly. In addition, Grantor grants to Lender a Uniform Commercial Code security interest in the Personal Property and Rents. THIS MORTGAGE, INCLUDING THE ASSIGNMENT OF RENTS AND THE SECURITY INTEREST IN THE RENTS AND PERSONAL PROPERTY, IS GIVEN TO SECURE (A) PAYMENT OF THE INDEBTEDNESS AND (B) PERFORMANCE OF ANY AND ALL OBLIGATIONS UNDER THE NOTE, THE RELATED DOCUMENTS, AND THIS MORTGAGE. THIS MORTGAGE IS GIVEN AND ACCEPTED ON THE FOLLOWING TERMS: PAYMENT AND PERFORMANCE. Except as otherwise provided in this Mortga0e, Grantor shall pay to Lender all amounts secured by [his Mortgage as they become due and shall strictly perform all of Grantor's obligations under this Mortgage. CONSTRUCTION MORTGAGE. This Mortgage is a "construction mortgage" for the purposes ct Sections 9-334 and 2A-309 of tile Uniform Commercial Code, as those sections have been adopted by the State of Wyoming. POSSESSION AND MAINTENANCE OF THE PROPERTY. Grantor agrees that Gramor's possession and use of the Properw shall be governed by the following provisions: Possession and Use. Until the occurrence of an Event of Default, Grantor may (1) remain in possession and control gl tile Property; (2) use, operate or manage the Property; and (3) collect the Rents from tile Property. Duty to Maintain. Grantor shall maintain the Property in good condition and prompdy perform all repairs, replacements, and mainleoance necessary to preserve ils value. Compliance With Environmental Laws. Grantor represents and warrants to Leadel Ii,at: (1) During the period of Grantor's ownership ol the Property, there has been no use, generation, manufacture, storage, treatment, disposal, release or threatened release of 8ny ttazardous Substance by any person on, under, about or from the Property; (2) Grantor has no knowledge of, or reason to believe [hd[ there has MORTGAGE 0~ '~9 Loan No: NEW (Continued) - Page 2 been, except as previously disclosed to and acknowledged by Lender in writing, (a) any breach or violation of any Environment[al Laws, (b) any use, generation, manufacture, storage, treatment, disposal, release or d~reatened release of any Hazardous Substance o~, under, about or from the Property by any prior owners or occupanZs of the Properly, or (c) any aclual or threatened lidgalion or claims gl any kind by any person reladng to such matters; and (3) Excep~ as previously disclosed to and acknowledged by Lender in wridng, (a) neither Oran[or nor any tenant, contractor, agent or other authorized user o[ the Property shall use, generate, manufacture, s~ore, trea~, dispose of or release any Hazardous Substance on, under, about or from the Properw; and (b) any such activity shall be conducted i~ compliance wilh all applicable federal, state, and local laws, regulations and ordinances, i~cludin9 wi~hou~ limiladon all Environmental Laws. Gramor authorizes Lender and i~s agents ~o enter upon the Property to make such inspections and tests, at Gran[o~'s expense, as Lender may deem appropriate zo de~ermine compliance of the Property with [his section of the Mortgage. Any inspections or les[s made by tender shall be for Lender's purposes only and shall not be cons[rued to crea~e any responsibildy or liabiliW o~ the par[ of Lender [o Grantor or [o any other person. The representations and warranties contained herein are based ~n Gran[or's due diligence: i~ inves[igadn9 the P~oper[y fo~ Hazardous Substances. Granzor hereby (1) releases and waives any lu[ure claims against Lender fer indemniW or conlribudon ir~ event Grantor becomes liable for cleanup or other costs under any such laws; aod (2) agrees [o indemr~ify and hold harmluss Lender against any and all claims, losses, liabilities, damages, penalties, and expenses which Lender may direcdy or indirectly sustain or resulting from a breach of [his section gl the Mortgage or as a consequence (~r any uso, generation, manufacture, storage, disposal, ~ele~se or threatened release occurring prior [o Grantor's ownership or interest in the Property, whether or not the same was or sho[Jld bare been known [o Grantor. The provisions of [his section of ~he Mortgage, including Ihe obligalion [o indemnify, sbalf survive lhe pay~nen[ gl Indebtedness and the satisfaction and reconveyance of ~he lien of [his Mor[~jagu and shall not be affected by Leoder's acquisition gl any interest in the Proper[y, whether by foreclosure or otherwise. Nuisance, Waste. Grantor shall not cause, conduct or permit any nuisance n~r commit, permit, or suffer any s~rippin9 o[or wasle on or [o the Property or any portion of the ProperZy. Without limiting the generality of ~he [oregoin9, Grantor will not remove, or 9ra~ ~o a~y other party the righ~ ~o remove, any timber, minerals (including oil and gas), coal, clay, scoria, soil, gravel or rock products wi~hou~ Ler~der's prior written consent. Removal of Improvements. Granzor shall not demolish or remove any Improvements from the Real Property without Lender's prior consent. As a condition to the removalof any Improvements, Lender may require Grantor to make arrangements satisfactory [o [_ende[ replace such Improvements with Improvements of at least equal value. Lendez's Right to Enter. Lender aod Lender's agents and representatives may enter upon the Real ProperW at all~easonable dines ~o attend to Lender's interests and [o inspecl the Real Property for purposes of dramor's compliance with ~he ~efms aod conditions of this M~r[gage. Compliance with Governmental Requirements. Grantor shall prompdy comply wilh all laws, ordinances, and regulations, ~ow or bere~f[er in effect, of all Governmental authorities applicable [o the use or occupancy gl (l~u ProperW. Oran[or m~y con~esl in good faith any such law, ordinance, or regulation and withhold compliance durin9 any proceeding, including appropriate ~ppeals, so Ion9 as Grantor has nod[led Lender in writing prior [o doing so and so long as, in Lender's sole opinion, Lender's interests in the P~oper[y are no~ jeopardized. Leoder may require Gran[or to pos[ adequate security or a surety bond, reasonably sa[isfaclory [o Lender, to pro[ecl Lendur's interest. Duty to Protect. Grantor agrees n~i[her [o abandon or leave unattended the Properw. Oran[or shall do all other ac[s, in addition [o [hose acts seZ forth above in ~his section, which from the character and use of the ProperW are reasonably necessary ~o protect and preserve ~be Proper~y. CONSTRUCTION LOAN. If some or all of the proceeds of the loan creating lhe Indebtedness are to be used to cons[ruc~ or complete construction of any Improvements on the Property, the Improvements shall be completed no later ~han the ma[uriW date gl the Note (or such earlier date as Lender may reasonably establish) and Grantor shall pay in full all costs and expenses in conoecdon with the work. lender will disburse loan proceeds under such terms and conditions as Lender may deem reaso]~ably necessary to insure that d~e inzeres~ c~ea[ed by [his Mortgage shall have priority over all possible liens, including ~hose of material suppliers and workmen. Lender may require, amo~9 other things, that disbursement requeszs be supported by receipted bills, expense affidavits, w,~ivers of liens, construction progress reporzs, and such giber documentation as Lender may reasonably request. DUE ON SALE - CONSENT BY LENDER. Lender may, at Lender's option, declare immediately due and payable all sums secored by [bis Mortgage upon the sale or transfer, without Lender's prior written consenz, of alt or aoy par[ o~ the Real Proper[y, o~ any i~[e~es[ in [l~e Real Property. A "saleor transfer" means[he conveyance of Real Proper[yor any righL title or interes[in the Real Proper[y; whe~herlegal, beneiicial or equitable; whether voluntary or involuntary; whether by outright sa!e, deed, ins~alhnen[ sale contract, land contract, con[rac~ tut deed, leasehold interest with a term 9rea[er than three (3) years, lease-option contract, or l)y sale, assignment, or ~rans~er of any beneficial interest in or to any land trust holding title to the Real Proper[y, or by any other me~hod of conveyance of an interest in the Re~l Property. However, d~is option shall not be exercised by Lender if such exercise is prohibited by federal law or by Wyoming law. TAXES AND LIENS. The following provisions relating to ~he taxes and liens on the Properiy are part of [his Mortgage: Payment. Granzor shall pay when due (and in all events prior to delinquency) all taxes, payroll [axes, special [axes, assessments, waler charges and sewer service charges levied against or on account of the ProperLy, ~nd shall pay when due ~11 claims for work done on or lot services rendered or material furnished tothe Property. Grantor shall maintain the ProperW free of any liens having priori[yover or equal ~he interest of Lender under this Mortgage, except for those liens specifically agreed to in writing by Lender, and excep~ ~oz the lien gl taxes and assessments not due as further specified in the Right to Contest paragraph. Right to Contest. Grantor may wizhhold payment of any tax, assessment, or claim in connection with a good faith dispute over lhe obligation to pay, so long as Lender's interest in the Property is not jeopardized. If a lien arises or is filed as a Jesuit of Grantor shall wiLl, in fifteen (15) days after the lien arises or, if a lien is filed, wid~in fifteen (15) days after Grantor has nodce of ~he filing, secure the discharge of the lien, or if requested by Lender, deposit with Lender cash or a sufficient corporate surety bond or other securiW satisfactory to Lender in an amount sufficient [o discharge the lien plus any costs and reasonable attorneys' fees, or other charges could accrue as a result of a foreclosure or sale under the lien. In any contest, Grantor shall defend i[setl and Lender and shall satisfy any adverse judgment before enforcement againsz ~he ProperZy. Grantor shall name Lender as an addilional obligee under any sureW bo~d furnished in the con,est proceedings. Evidence of Payment. Grantor shall upon demand furnish to Lender satisfactory evidence of paymen~ of ~he [axes or assessments arid shall authorize the appropriate 9overnmen[al official [o deliver to Lender at any title ~ written statement gl the [axes and assessments agai~s~ the Property. Notice of Construction. Grantor shall notify Lender at least fifteen (15) days before any work is commenced, any services are furoished, MORTGAGE (Continued) Pago 3 any materials are supplied to the Property, if any mechanic's lien, materialmen's lien, or other lien could be asserted on account of It~e work, services, or materials. Oran[or will upon request of Lender furnish to Lender advance assurances satisfactory [o L_e~tder II~a[ Grantor can and will pay [he cost of such improvements. PROPERTY DAMAGE INSURANCE. The following provisions relating to insuring the Property are a part of this Mortgage: Maintenance of Insurance. Grantor shall procure and maintain policies of fire insurance with standard extended coverage endorsements on a replacement basis for the full insurable value covering all Improvements on tl~e Rea~ Property in an amount sufficient to avoid application of any coinsurance clause, and with a standard mortgagee clause in favor of L~mder. Policies shaJibe written by such insurance companies and in such form as may be reasonably acceptable to Lender. Grantor shall deliver to Lender certificates of coverage from each insurer containing a stipulation that coverage will not be cancelled or diminished without a minimum of thirty (30) days' prior written notice to Lender and not containing any disclaimer of the insurer's liability for failure to give such no[ice. Ea~hinsurance policy also shaili~clude an endorsement providing that coverage in favor of Lender will not be impaired i~ any way by any act, omission or default of Grantor or ~ny other person. Should tl~e Real Property be located in an area designated by the Director of the Federal Emergency Managemenl Agency as a special flood hazard area, Grantor agrees to obtain and maintain Federal Flood lr~surance, if available, within 45 days after notice is given by Lender that the Property is located in a special flood hazard area, for the full unpaid principal balance of [he loan and any prior lieos on the property securing the loan, up to the maximum policy limits set under the Nationat Flood insurance Program, or as otherwise required by Lender, and to maintain such insurance for the term of the loan. Application of Proceeds. Grantor shall p'romptly notify Lender of any loss or damage to the Property. Lender may make proof of loss if Grantor fails to do so within fifteen (15) days of the casualty. Whether or no[ Lender's security is impaired, Lender may, at l.ender's election, receive and retain the proceeds of any insurance and apply the proceeds to the reduction of the Indebtedness, payment of any lieo affecting the Property, or the restoration and repair of the Property. If Lender elects to apply the proceeds to restoration and repair, Grantor shall repair or replace the damaged or destroyed Improvements in a manner satisfactory to Lender. Lender shall, upon satisfactory proof gl such expenditure, pay or reimburse Grantor from the proceeds for the reasonable cost of repair or restoration if Grantor is not in det~ull under this Mortgage. Any proceeds which have not been disbursed within 180 days alter their receipt and which Lender has not commit[ed to the repair or res[oration of the Property shall be used firs[ to pay any amount owing to Lender under this Mortgage, then to pay accrued interest, and the remainder, if any, shall be applied to the principal balance of the Indebtedness. If Lender holds any proceeds after payment in full of the Indebtedness, such proceeds shall be paid to Grantor as Grantor's interests may appear. LENDER'S EXPENDITURES. If Grantor fails (A) to keep the Property free of all taxes, liens, security interests, encumbrances, and other claims, (B) to provide any required insurance on the Property, or (C) to make repairs [o the Property then Lender may do so. It any ac[for/ or proceeding is commenced that would materially affect Lender's interests in the Property, then Lender on Gr~ntor's behalf may, bul is not required to, take any action that Lender believes to be appropriate to protect Lender's interests. All expenses incurred or paid by Lender for such purposes will then bear interest at the rate charged under the Note from the d~te incurred or paid by t_ender to [he dale of repayment by Grantor. All such expenses will become a part of the Indebtedness and, at Lender's option, will (A) be payable on demand; rD) be ~dded to the balance of the Note and be apportioned among and be p~yable with any installment payments to become due during eitl~er (~) the term ot any applicable insurance policy; or (2) the remaining term of the Note; or (C) be [rea[ed as a balloon payment wl~icl/ will be due and payable at the Nora's maturity. The Mortgage also will secure payment of these amounts. The rights provided for in this paragrapil si~all be in addidon to any other rights or any remedies to which Lender may be entitled on account of any default. Any such ac[ion by Lender si/ali not be construed as curing the default so as to bar Lender from any remedy that it otherwise would have had. WARRANTY; DEFENSE OF TITLE. The following provisions relating to ownersl~ip of tile Property are a part of this Mortgage: Title. Grantor warrants that: (a) Grantor holds good and marketable title of record [o the Property in fee simple, free and clear ot all liens and encumbrances other than those set forth in the Real Property description or in any title insurance policy, title report, or final title opinion issued in favor of, and accepted by, Lender in connection with [his Mortgage, and (b) Grantor has toe full right, power, and ~uthodty to execute and deliver this Mortgage to Lender. Defense of Title. Subject to the exception in the paragraph above, Grantor warrants and wilt forever defend the title to ti~e Property against the lawful claims of ali persons. In tile event any action or proceeding is commenced that questions Graotor's title or tile interest ot L.e~der under this Mortgage, Grantor shall defend toe action at Grantor's expense. Grantor may be the nominal parW in such proceeding, but Lender shall be entitled to participate in [he proceeding and to be represented in the proceeding by counsel ot Lel~der's own choice, and Grantor will deliver, or cause to be delivered, to Lender such instruments as Lender may request from time to lime [o permit such participation. Compliance With Laws. Grantor warrants that the Property and Grantor's use ot the Property complies with all existing applicable laws, ordinances, and regulations of governmental authorities. Survival of Promises. All promises, agreements, and statements Grantor has made in this Mortgage shall survive the execution and delivery full.of this Mortgage, shall be continuing in nature and si~all remain in full force and eflec[ until such time as Gr~ntor's Indebtedness is paid in CONDEMNATION. The following provisions relating to condemnation proceedings a~e a par[ of this Mortgage: Proceedings. If any proceeding in condemnation is filed, Grantor shall prompdy notify Lender in writing, and Grantor sh~ll promptly take such steps as may be necessary to defend tl~e action and obtain the award. Grantor may be the nominal party in such proceedi~g, but Lender shall be entitled to participate in the proceeding and to be represented it/ tl~e proceeding by counsel of its own choice, and Grammar will deliver or cause to be delivered to Lender such instruments and documema[ion as may be requested by Lender from time to time [o permit such participation. Application of Net Proceeds. If all or any par[ of the Property is condemned by eminent domain proceedin§s or by any proceeding or purchase in lieu of condemnation, Lender may at its election require that all or any pordon of the net proceeds of the award be ~pplied to the Indebtedness or the repair or restoration of [he Property. The net proceeds of tile award shall mean the award a~ter payment ot all reasonable costs, expenses, and attorneys' fees incurred by Lender in connection with the condemnation. IMPOSITION OF TAXES, FEES AND CHARGES BY GOVERNMENTAL AUTHORITIES. The following provisions relating to governmental taxes, fees and charges are a part of this Mortgage: Current Taxes, Fees and Charges. Upon request by Lender, Grantor shall execute such documents in addition ~o Ihis Mortgage and take whatever other action is requested by Lender to perfect and continue Lender's lien on [l~e Real Property. Grantor sh~ll reimburse Lender lot Loan No: NEW MORTGAGE 0 ~ ~L~ ~ (Continued) Page 4 all taxes, as described below, together with all expenses incurred in recording, perfecting or continuing this Mortgage, includin§ without limitation all taxes, foes, documentary stamps, and other charges for recording or registering this Mortgage. Taxes. The following shall constitute taxes to which this section applies: (1) ~ specilic tax upon this type of Mortgage or upon all or any part of the Indebtedness secured by this Mortgage; (2) a specific tax on Grantor which Grantor is auiLborized or required to deduct b'on/ payments on the Indebtedness secured by this type of Mortgage; (3) a tax on [his type of Mortgage chargeable against the Lender or the holder of the Note; and (4) a specific tax on all or any portion of the IndebtcCh~ess or on payments of principal and interest made by Grantor. Subsequent Taxes. If any tax to w~ich this section applies is enacted subsequent to the date of this Mortgage, this event shall have same effect as an Event of Default, and Lender may exercise any or all of its available remedies for an Event of Default as provided below unless Grantor either (1) pays the'tax before it becomes delinquent, or (2) contests the [ax as provided above in the Taxes and Liens section and deposits wi~h Lender cash or a sufficient corporate surety bond or other security satisfactory to Lender. SECURITY AGREEMENT; FINANCING STATEMENTS. The following provisions reladng ~o this Mortgage as a security agreement are a part of this Mortgage: Security Agreement. This instrument shall constitute a Security Agreement to the extent any of the Property constitutes fixtures, and Lender shall have all of the rights of a secured party under the Uniform Commercial Code as amended from time to tinge. Security Interest. Upon request by Lender, Grantor shall take whatever action is requested by Lender to perfect and continue lender's security interest in the Personal Property. In addition to recording this Mortgage in [he real property records, tender may, a~ any time and without further authorization from Grantor, file executed counterparts, copies or rel~roductions of this Mortgage as a financing statement. Grantor shall reimburse Lender for all expenses incurred in perfecting or conth~uing this security interest. Upon default, Grantor shall not remove, sever or detacb the Personal Property from the Property. Upon default, Grantor shall assemble any Personal Prope~ty not affixed to the Property in a manner and at a place reasonably convenient to Grantor and Lender and make it available to Lender within d~ree (3) days after receipt of written demand from Lender to the extent permitted by aPt)lic~ble law. Addresses. The mailing addresses of Grantor (debtor) and Lender (secured party) from which information concerning the security interest granted by this Mortgage may be obtained (each as required by the Uniform Commercial Code) are as stated on the first page of this Mortgage. FURTHER ASSURANCES; ATTORNEY-IN-FACT. The following provisions relating to ~urther assurances and attorneyqn fact are a part of this Mortgage: Further Assurances. At any time, and from time to time, upon request of Lender, Grantor will make, execute and deliver, or will cause be made, executed or delivered, to Lender or to Lender's designee, and when requested by Lender, cause to be filed, recor~led, refiled, or rerecorded, as the case may be, at such times and in such offices and places as Lunder may deem appropriate, any and all such mortgages, deeds o[ trust, security deeds, security agreements, financing statements, continuation statements, instruments of lurzher assurance, certificates, and other documents as may, in the sole opinion of Lender, be necessary or desirable in order to effectuate, complete, perfect, continue, or preserve (1) Grantor's obligations under the No~e, this Mortgage, and the Related Documents, and (2) the liens and security interests created by this Mortgage as first and prior liens on the Property, whether now owned or hereafter acquired by Grantor. Unless prohibited by law or Lender agrees to the contrary in writing, Grantor shall reimburse Lender for all costs and expenses incurred in connection with the matters referred to in this paragraph. Attorneydn-Fact. If Grantor fails to do any of the things referred to in the preceding paragraph, Lender may do so lot and in the name Grantor and at Grantor's expense. For such purposes, Grantor hereby irrevocably appoints Lender as Grantor's attorney-in-fact for the purpose of making, executing, delivering, filing, recording, and doing all other things as may be necessary or desirable, in Lender's sole opinion, to accomplish the matters referred to in the preceding paragraph. FULL PERFORMANCE. If Grantor pays all the Indebtedness when due, and otherwise performs all the obligations imposed upon Grantor under this Mortgage, Lender shall execute and deliver to Grantor a suitable satisfaction of [his Mortgage and suitable s~atements ct termination ct any financing statement on file evidencing Lender's security interest in the Rents and the Personal Property. Grantor will pay, if permitted by applicable law, any reasonable termination fee as determined by Lender from time to time. EVENTS OF DEFAULT. At Lender's option, Grantor will be in default under this Mortgage if any of the following happen: Payment Default. Grantor fails to make any payment when due under the Indebtedness. Default on Other Payments. Failure of Grantor within the time required by lhis Mortgage to make any payment [or taxes or insurance, or any other payment necessary to prevent filing of or to effect discharge of any lien. Break Other Promises. Grantor breaks any promise made to Lender or fails to i~erform promptly at the time and strictly in the manner provided in this Mortgage or in any agreement related to this Mortgage. Default in Favor of Third Parties. Should Grantor default under any loan, extension of credit, security agreement, purchase or s~es agreement, or any other agreement, in favor of any other creditor or person 0~a[ may materially affect any gl Grantor's property or Granto~'s ability to repay tbe Indebtedness or Grantor's ability to perform Grantor's obligations under this Mortgage or any related document. False Statements. Any representation or statement made or furnished to Lender by Grantor or on Grantor's behalf under this Mortgage or the Related Documents is false or misleading in any material respect, either now or at lite time made or furnished. Defective Collateralization. This Mortgage or any of the Related Documents ceases to be in full force and eflect (includi~g failure ct any collateral document to create a valid and perfected security interest or lien) at ur~y time and for any reason. Death or Insolvency. Thedea[hof Grantor, the insolvency of Grantor, the appoinm~ent of a receiver for any par[ of Grantods 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 Grantor. Taking of the Property. Any creditor or governmental agency tries to take any of the Property or any other of Grantor's property in which Lender has a lien. This includes taking of, garnishing of or levying on Grantor's accounts with Lender. However, i~ Gra~[or disputes in good faith whether the claim on which the taking of the Property is based is valid or ~easonable, and if Grm~tor gives Lender written notice of the claim and furnishes Lender with monies or a surety bond satisfactory to Lender to satisfy the claim, then this defauh provision will 0 0 ,055 MORTGAGE Loan No: NEW (Continued) LO '~! o q Page 5 not apply. Breach of Other Agreement. Any breach by Grantor under the terms of any other agreement between Grantor and Lender that is not remedied within any grace period provided therein, including without limitation any agreement concerning any indebtedness or other obligation of Grantor to Lender, whether existing now or later. Events Affecting Guarantor. Any of the preceding events occurs with respect to any guarantor, endorser, surety, or acco~nmodadon parW of any of the Indebtedness or any guarantor, endorser, surety, or'accommodatiun party die~ or becomes inco~opetent, or revokes or disputes the validity of, or liability under, any Guaranty o~ the Indebtedness. Insecurity. Lender in good faith believes itself insecure. RIGHTS AND REMEDIES ON DEFAULT. Upon the occurrence of an Event of Default a~d at any time thereafter, Lender, at lender's option, may exercise any one or more of the following rights and remedies, in addition to any other rights or ~emedies provided by law: Accelerate Indebtedness. Lender shall have the right at its option without notice to Grantor to declare the entire Indebtedoess immediately due and payable, including any prepayment penalty which Grantor would be required to pay. UCC Remedies. With respect to all or any part of the Personal Property, Lender shall have all the rights and remedies of a secured party under the Uniform Commercial Code. Collect Rants. Lender shall have the right, without notice to Grantor, to take possession of the Property, including during the pendency of foreclosure, whether judicial or non-judicial, and collect the Rents, including amounts past due and unpaid, and apply tile ne~ proceeds, over and above Lender's costs, against the Indebtedness. In furtherance of this ri~Jht, Lender may require any tenant or other user of the Property to make payments of rent or use fees directly to Lender. If the Rents are collected by Lender, then Grantor irrevocably designates Lender as Grantor's attorney-in-fact to endorse instruments received in payment thereof in the name of Grantor and to negotiate tt~e same and collect the proceeds. Payments by tenants or other users to Lender in response to Lender's demand shall satisfy the obligations for which the payments are made, whether or not any proper grounds for the d~rnand existed. Lender may exercise its rights under d~is subparagraph either in person, by agent, or through a receiver. Appoint Receiver. Lender shall have the right to have a receiver appointed to take possession of all or any part of the Property, with lhe power to protect and preserve the Property, to operate the Property precedino foreclosure or sale, and to collect the Reefs from the Property and apply the proceeds, over and above the cost of the receivership, aoainst tl~e Indehtedness. The receiver may serve wilhout bond it permitted by law. Lender's right to the appointment of a receiver shall exist whether or not the apparent value et the P~operW exceeds the Indebtedness by a substantial amount. Employment by Lender shalt~otdisqualify a person from serving as a receiver. Judicial Foreclosure. Lender may obtain a judicial decree foreclosing Grantor's interest in ail or any part of the Property. Nonjudicial Sale. Lender may foreclose Grantor's interest in all or in any part cl d~e Property by non-judicial sale, and specifically by "power of sale" or "advertisement and sale" foreclosure as provided by statute. Deficiency Judgment. If permitted by applicable law, Lender may obtain a judgment for any deficiency remaining in the h~deb[edness due to Lender after application of all amounts received from the exercise of the rights provided in this section. Tenancy at Sufferance. If Grantor remains in possession of the Property attar tile Property is sold as provided above or Lender otherwise becomes entitled to possession of the Property upon default of Grantor, Grar~or shall become a tenant at sufferance of Lender or the purchaser of the Property and shall, at Lender's option, either (1) pay a reasonable rental for the use of the Proper[y, or (2) vacate the Property immediately upon the demand of Lender. Other Remedies. Lender shall have all other rights and remedies provided in this Mortgage or the Note or available at law or in equity. Sale of the Property. To the extent permitted by applicable law, Grantor hereby waives any and all right to have the Property marshalled. In exercising its rights and remedies, Lender shall be free to sell all or any part of the Property together or separately, in o~e sate or by separate sales. Lender shall be entitled to bid at any public sale on all or any portion of the Property. Notice of Sale. Lender will give Grantor reasonable notice of the time and place of any public sale of the Personal Property or of the time after which any private sale or other intended disposition of the Personal Property is to be made. Reasonable nodce shall mean ~otice given at least ten (10) days before the time of the sale or disposition. Any sale of the Personal Property may be made in conjunction witll any sale of the Real Property. Election of Remedies. All of Lender's rights and remedies will be cumulative and may be exercised alone or togedter. An election by Lender to choose any one remedy will not bar Lender from using any other remedy. It Lender decides to spend money or to perform anyof Grantor's obligations under this Mortgage, after Grantor's failure to do so, that decision by Lender will not affect te~tder's right to declare Grantor in default and to exercise Lender's remedies. Attorneys' Fees; Expenses. If Lender institutes any suit or action to enforce any of the terms of this Mortgage, Lender shall be e~ditted to recover such sum as the court may adjudge reasonable as attorneys' fees at trial and upon any appeal. Whether or not any cou~t action) is involved, and to the extent not prohibited by law, all reasonable expenses Lender incurs that in Lender's opit~ion are necessary at any time for the protection of its interest or the enforcement of its rights shall become a part of the Indebtedness payable go demand and sl~att bear interesl at the Note rate from the date of the expenditure until repaid. EXl)C~lses covered by this paragraph include, without limitation, however subject to any limits under applicable law, Lender's reasonable attorneys' fees and Lender's legal expenses wi'tether or not there is a lawsuit, including reasonable attorneys' fees and expenses for bankruptcy proceedings (including efforts to modify or vacate any automatic stay or injunction), appeals, and any anticipated post-judgment collection services, the cost of searching records, obtainin9 title reports (including foreclosure reports), surveyors' reports, and appraisal fees and title insurance, to the extent permitted by applicable law. Grantor also will pay any court costs, in addition to all other sums provided by law. NOTICES. Any notice required to be given under this Mortgage, including without limitation any notice of default and any notice of sale shall be given in writing, and shall be effective when actually delivered, when actually received by telefacsimile (unless otherwise required by law), when deposited with a nationally recognized overnight courier, or, if mailed, when deposited in the United States mail, as first class, certified or registered mail postage prepaid, directed to the addresses shown near the beginnin§ of [his Mortgage. All copies of notices of foreclosure from the holder of any lien which has priority over this Mortgage shall be sent to Lender's address, as shown near the heg/nnin9 of this Mortgage. Any person may change his or her address for notices under this Mortgage by giving formal written notice to the other person or persons, specifying that the purpose of the notice is to change the person's address. For nodce purposes, Grantor agrees to keep Leoder informed at all Loan No: NEW MORTGAGE (Continued) Page 6 times of Grantor's current address. Unless otherwise provided or required by law, ii[here is more than one Grantor, any notice given by lender to any Grantor is deemed to be notice 9ivento all Grantors. It will be Grantor's responsibility to tell the others of tl3e nodc~ from Lender. FURTHER ASSURANCES. The parties hereto agree to do all things deemed necessary by Lender in order to fully document the loan evidenced by this Note and any related agreements, and will fully cooperate concerning tile execution and delivery of security agreeme[~ts, stock powers, instructions and/or other documents pertaining to any collateral intended to secure the indebtedness. The undersigned agree to assist in the cure of any defects in the execution, delivery or substance of the Note and related agreements, and in the creation and perfection of any liens, security interests or other collateral rights securing the Note. CONSENT TO SELL LOAN. The parties hereto agree: (a) Lender may sell or transfer all or part of this loan to one or more purchase[s, whether related or unrelated to Lender; {b) Lender may provide to any purchaser, or potential purchaser, any information or knowledge Lender may have about the parties or about any other matter relating to this loan obligation, and the parties waive aoy rights to privacy it may have with respect to such matters; (c) the purchaser of a loan will be considered its absolute owner and will have all tile rights granted under the loan documents or agreements governing the sale of the loan; and (d) the purchaser of a loan may enforce ils interests irrespective of any claims or defenses that the parties may have against Lender. FACSIMILE AND COUNTERPART. This document may be signed in any number of separate copies, each of which shall be effective as an original, but all of which taken together shall constitute a single document. An elec~rooic transmission or other facsimile of this documertt or any related document shall be deemed an original and shall be admissible as evidence of the document and the si§ne~'s execution. ARBITRATION AGREEMENT. Arbitration - Binding Arbitration. Lender and each t)arW to tt~is agreement hereby agree, upon demand by any party, to submit any Dispute to binding arbitration in accordance with the terms ct this Arbitration Program. A "Dispute" shall include any dispute, claim or controversy of any kind, whether in contract or irt tort, Legal or equitable, now existing or hereafter arising, relating in any way to this Agreement or any related agreement incorporating tl~is Arbitration Program (Ihe "Documents"), or any past, present, or future loans, transactions, contracts, agreements, relationships, incidents or injuries of any kited whatsoever relating to or involving Business Banking, Regional Ranking, or any successor group or department of Lender. DISPUTES SUI~MIT-I'ED TO ARBITRATION ARE NO~ RESOLVED IN COURT BY A JUDGE OR JURY. Governing Rules. Any arbitration proceeding will (i) be governed by the Federal Arbitration Act (Title 9 of the United Slates Code), notwithstanding any conflicting choice of law provision in any of the documems between the parties; and (ii) be conducted by the AAA (American Arbitration Association), or such other administrator as the parties shall mutually agree upon, in accordance with the AAA's commercial dispute resolution procedures, unless the claim or counterclaim is at least $],000,000.00 exclusive of claime(I interest, a[bi[radon fees and costs in which case the arbitration shall be conducted in accordance with the AAA's optional procedures for large, complex commercial disputes (the commercial dispute resolution procedures or the optional procedures for large, complex commercial disputes to be referred to, as applicable, as the "Rules"). If there is any inconsistency between the terms hereof and the Rules, the terms and procedures set forth herein shall control. Arbitration proceedings hereunder shall be conducted al a location mutually agreeable to the pardes, or if they cannot agree, then at a location selected by the AAA in the state of the applicable substa~[ive law primarily governing the Credit. Any party who fails or refuses to submit to arbitration following a demand by any other party shall bear all costs aod expenses incurred by such ortner party in compelling arbitration of any Dispute. Arbitration may be demanded at any time, and may be compelled by summary proceedings in Court. The institution and maintenance of an action for judicial relief or pursuit of a provisional or a~cillary remedy shall not constitute a waiver ct the right of any party, including the plaintiff, to submit the controversy or claim to arbitration if any other party contests such action tot judicial relief. The arbitrator shall award all costs and expenses of the arbitration proceeding. Nothing contained herein shall be deemed to be a waiver by any party that is a Bank of the protections afforded to it under 12 U.S.C. ~91 or any similar applicable state law. No Waiver of Provisional Remedies, Self-Help and Foreclosure. The arbitration requirement does not limit the right of any party to (i) foreclose against real or personal property collateral~ (ii) exercise self-help remedies relating to collateral or proceeds of collateral such as se[oft or repossession; or (iii) obtain provisional or ancillary remedies such as replevin, injunctive relief, attachment or the appointment of a receiver, before during or after the pendency of any arbitration proceeding. This exclusion does not constitute a waiver of the right or obligation of any party to submit any Dispute to arbitration or reference hereunder, including those a~isi~g horn H'~e exercise of the actions detailed io sections (ii) and (iii) of this paragraph. Arbitrator Qualifications and Powers. Any arbitration proceeding in which the amount io controversy is $5,000,000.00 or less will be decided by a single arbitrator selected according to the Rules, and who shall not render an award of greater than ,~5,000,000.00. Any [3ispu[e in which the amount in controversy exceeds $5,000,000.00 shall be decided by majority vote of a panel of ~hree arbitrators; provided however, that all three arbitrators must actively participate in all hearings and deliberations. Every arbitrator must be a practich~g attorney or a retired member of the state or federal judiciary, in either case with a minimum of ten years experience in the substantive law applicable to the subject matter ol the Dispute. The arbitrator will determine whether or not an issue is arbitratable and will give effect to the statutes of limitation in determi~dng any claim. In any arbitration proceeding the arbitrator will decide (by documents only o~ with a hearing at the arbitrator's discretion) any ~reJ~earing motions which are similar to morions to dismiss for failure to state a claim or motions for summary adjudication. The arbitrator shall resotve all Disputes in accordance with the applicable substantive law and may grant any remedy or relief that a court ct such slate could order or grant within the scope hereof and such ancillary relief as is necessary to make effective a[W award. The arbitrator shell also have the power to award recovery of all costs and fees, ~o impose sanctions and to take such other action as tl)e arbitrator deems necessary tu the same extent a judge could pursuant to the Federal Rules of Civil Procedure, the applicable State Rules oi Civil Procedure, or other applicable law. Judgmeut upon die award rendered by the arbitrator may be entered in any court having jurisdiction. Discovery. In any arbitration proceeding discovery will be permitted in accordance with the Rules. All discovery shall be expressly limited to matters directly relevant to ~he Dispute being arbitrated and must be completed no later than 20 days' before ~he hearing date and within !80 days of the filing of the Dispute with the AAA. Any requests for an extension of die discovery periods, or any discovery disputes, will be subject to final determination by the arbitrator upon a showing that the request for discovery is essential for the parW's presentation and that no alternative means for obtaining information is available. Miscellaneous. To the maximum extent practicable, the AAA, the arbitrators and the parties shall take all action required to conclucte any arbitration proceedin§ within 180 days of the filing of the Dispute with the AAA. the resolution of any Dispute shall be determined by a separate a[bitration proceeding and such Dispute shall not be consolidated with other disputes or includedin any class proceeding. No arbitrator or other party to an arbitration proceeding may disclose the existence, content or results thereof, except for disclosures of informatio~ by a party required in the ordinary course of its business or by applicable law or regulation. Il more than one agreement for arbitration by or between the parties potentially applies to a Dispute, the arbitration provision most directly related to the documents between the parties or the subject matter of the Dispute shall control. This arbitration provision shall survive termination, amendment or expiration of auy of [I)e docu~ne~ts (,r arw Loan No: NEW MORTGAGE (Continued) Page 7 relationship between the parties. State-Specific Provisions. If California law governs the Dispute, the following provision is included: Real Property Collateral; Judicial Reference. Notwithstanding anything herein to the contrary, no Dispute shall be submitted to arbitralion if tlqe Dispute concerns indebtedness secured directly or indirectly, in whole o~ in part, by any real property unless the bolder of tile mortgage, lien or security interest specifically elects in writing to proceed with the arbitration. If a~y such Dispute is not submitted to arbitration, the Disl:~ule shall, at the election of any party, be referred to a referee in accordance with California Code of Civil Procedure Section 638 et seq., and this general reference agreement is intended to be specifically enforceable in accordance with said Section 638. A referee with the qualifications required herein for arbitrators shall be selected pursuant to the AAA's selection procedures. Judgment upon the decision rendered by a referee 645.shall be entered in the court in which such proceeding was commenced in accordmqce with California Code of Civil Procedure Sections 644 and If Idaho law governs the Dispute, the following provision is included: Real Property Collateral; Judicial Reference. Notwithstanding anything herein to the contrary, no dispute si3all be submitted to arbitration if the dispute concerns indebtedness secured directly or indirectly, in whole or in part, by any real properW unless (i) the holder of the mortgage, lien or security interest specifically elects in writing to proceed with the arbitration, or {ii) all parties to the arbitration waive any rights or benefits that might accrue to them by virtue of the single action rule statute of Idaho, thereby agreeing that all indebtedness and obligations of the parties, and all mortgages, liens and security interests securing such indebtedness at~d obligations, shall remain fully valid and enforceable. If Montana law governs the Dispute, the following provision is included: Real Property Collateral; Judicial Reference. Notwithstanding anything herein to the contrary, no dispute shall be submitted to arbitralion if dispute concerns indebtedness secured directly or indirectly, in whole or in part, by any real property unless (i) the holder of the mortgage, lieo or security interest specifically elects in writing to proceed with the arbitration, or (ii) all parties to the arbitration waive any rights o~ benefits that might accrue to them by virtue of the single ac)on rule statute of Montana, thereby a§reeing ti)at all indebtedness arid obligations of the parties, and all mortgages, liens and security interests securing such indebtedness and ob ga)ions, shall remain fully valid m~d enforceable. If Nevada law governs the Dispute, the following provision is included: Real Property Collateral; Judicial Reference. Notwithstanding anything herein to the contrary, no dispute shall be submhted to arbitration if the dispute concerns indebtedness secured directly or indirectly, in whole or in part, by any real property unless (i) the holder of the mortgage, lieu or security interest specifically elects in writing to proceed with the arbitration, or (ii) all part/es to the arbitration waive any rights or benefits that might accrue to them by virtue of the single action rule statute of Nevada, thereby agreeing that all indebtedness and obligatioos et the parties, and all mortgages, liens and security interests securing such indebtedness and obligations, shall remain fully valid and enforceable. If Utah law governs the Dispute, the following provision is included: Real Property Collateral; Judicial Reference. Notwithstanding anything herein to the contrary, no Dispute shall be submitted to arbitratio~l if the Dispute concerns indebtedness secured directly or indirectly, in whole or in part, by any real property unless the holder of the mortgage, lien or security interest specifically elects in writing to proceed with the arbitration. If any such Dispute is not submitted to arbitration, the Dispute shall, at the election of any party, be referred to a master in accordance with Utah Rule of Civil Procedure 53, and this general ~eterence agreement is intended to be specifically enforceable. A master with the qualifications required herein for arbitrators shall be selected pursuant to the AAA's selection procedures. Judgment upon the decision rendered by a master shall be entered in the court in which such proceeding was commenced in accordance with Utah Rule of Civil Procedure 53(e). MISCELLANEOUS PROVISIONS. The following miscellaneous provisions are a part of this Mortgage: Amendments. What is written in this Mortgage and in the Related Documents is Grantor's entire agreement with Lender concerning the matterSwhoeverCOVeredwill be boundbY thiSorMOrtgage.obligated byT°thebe changeeffectiVe'or anYamendment.change or amendment to this Mortgage must be in writing and must be signed by Caption Headings. Caption headings in this Mortgage are for convenience purposes only and are not to be used to interpret or define the provisions of this Mortgage. Governing Law. This Mortgage will be governed by and interpreted in accordance with federal law and the laws of tim State of Wyoming. This Mortgage has been accepted by Lender in the State of Wyoming. Joint and Several Liability. All obligations of Grantor under this Mortgage shall be joint and several, and all references to Gran~or shall mean each and every Grantor. This means that each Grantor signing below is responsible lor alt obligations in this Mortgage. No Waiver by Lender. Grantor understands Lender will not give up any of Le,dcr's rights under this Mortgage unless lender does so writing. The fact that Lender delays or omits to exercise any right will not mean that tender has given up that right. If lender does agree ir) writing to give up one of Lender's rights, that does not mean Grantor will not have to comply with the other provisions of this Mortgage. Grantor also understands that if Lender does consent to a request, that does not mean that Grantor will not have to get [.ende~'s consent again if the situation happens again. Grantor further understands that just because Lender consents to one or more of Granlor's requests, that does not mean Lender will be required to consent to any of Orantor's future requests. Grantor waives presentment, demand for payment, protest, and notice of dishonor. Grantor waives all rights of exemption from execution or similar law in the Prot~erty, nod Granlor agrees that the rights of Lender in the Property under this Mortgage are prior to Grantor's rights while this Mortgage remains in effect. Severability. If a court finds that any provision of this Mortgage is not valid or should not be enforced, that fact by itself will not rneao that the rest of this Mortgage will not be valid or enforced. Therefore, a court will etqforce the rest of the provisions of tt)is Mortgage even if a provision of this Mortgage may be found to be invalid or unenforceable. Merger. There shall be no merger of the interest or estate created by this Mortgage with any other interest or es)stein)he Property at any time held by or for the benefit of Lender in any capacity, without the written cor~sent of Lender. Successors and Assigns. Subject to any limitations stated in this Mortgage on transfer of Grantor's interest, this Mortgage shall be binding upon and inure to the benefit of the parties, their successors and assigns. If ow~tership of the Property becomes vested in a person other :~0 0~.:~ MORTGAGE Loan No: NEW {Continued) 0 ~ '~ ~' ~ ~) Page 8 than Grantor, Lender, without notice to Grantor, may deal with Grantor's successors with reference to this Mortgage and the Indebtedness by way of forbearance or extension without releasing Grantor from the obligations of this Mortgage or liability under the Indebtedness. Time is of the Essence. Timeis of the essence in the performance of this Mortgage. Waiver of Homestead Exemption. Grantor hereby releases and waives all rights and benefits of the homestead exemptionlaws gl the State of Wyoming as to all Indebtedness secured by this Mortgage. DEFINITIONS. The following words shall have the following meanings whe~ used in this Mortgage: . . Borrower. The word "Borrower" means R. Mike Lee and Patti Lee and includes all co-signers and co-makers signing the Note. Environmental Laws. The words "EnVironmental Laws" mean any and all stale, federal and local statutes, regulations and ordinances relating to the protection of human health or the environment, including without limitation the Comprehensive Enviro,~menlal Response, Compensation, and Liability Act of 1980, as amended, 42 U.S.C. Section 9601, et seq. ("CERCLA"), the Superfund Amendments a~sd Reau[horizadon Act of 1986, Pub. L. No. 99 499 ("SARA"), the Hazardous Materials Transportation Act, 49 U.S.C. Section 1801, el seq., the Resource Conservation and Recovery Act, 42 U.S.C. Section 6901 er seq., or other applicable stale or federal laws, rules, or regulations adopted pursuant thereto. ' Event of Default. The words "Event of Default" mean any of the events of default set forth in this Morlgage in the events et default section of this Mortgage. Grantor. The word "Grantor" means R. Mike Lee and Patti Lee. Guaranty, The word "Guaranty" means the guaranty from guarantor, endorser, surety, or accommodation party to Lender, including without limitation a guaranty of all or part of the Note. Hazardous Substances. The words "Hazardous Substances" mean materials that, because of ~heir quantity, concentration or physical, chemical or infectious characteristics, may cause or pose a present or potential hazard to human heahh or the environme~d when improperly used, treated, stored, disposed of, generated, manufactured, transported or otherwse handled. The words "Hazardous Substances" are used in their very broadest sense and include without limitation any and all hazardous or toxic substances, materials o~ waste as defined byorlisted under the Environmental Laws. The term "Hazardous Substances" also includes, withoullimitadon, petroleum and petroleum by-products or any fraction thereof and asbestos. Improvements. The word "Improvements" means all existing and future improvements, buildings, structures, mobile homes affixed on Real Property, facilities, additions, replacements and other construction on the Real Property. Indebtedness. The word "Indebtedness" means all principal, interest, and other amounts, costs and expenses payable under ~be Note or Related Documents, together with all renewals of, extensions of, modifications of, consolidations of and substitutions for the No~e or Related Documents and any amounts expended or advanced by Lender to discharge Grantor's obligations or expenses incurred by Lender to enforce Grantor's obligations under this Mortgage, together with interest on such amounts as provided in this Mortgage. Specilically, without limitation, Indebtedness includes all amounts that may be indirectly secured by the Cross-Collateralizalion provision of Ihis Mortgage. Lendor. The word "Lender" means Wells Fargo Bank, National Assocation, its successors and assigns. The words "successors or assigns" mean any person or company that acquires any interest in the Note. Mortgage. The word "Mortgage" means this Mortgage between Grantor and Lender. Note. The word "Note" means the promissory note dated August 4, 2004, iii lhe original principal amount of $198,000.00 from Grantor to Lender, together with all renewals of, extensions of, modifications of, refinancings ot, consolidations et, and substitutions for the promissory note or agreement, Personal Property. The words "Personal Property" mean all equipment, fixtures, and other articles of personal property now or hereafter owned by Grantor, and now or hereafter attached or affixed to the Real Property; logetber with all accessions, parts, and addilions re, all replacements of, and all substitutions for, any gl such property; and together with all proceeds (including without limitalion all insurance proceeds and refunds gl premiums) from any'sale or other disposition of the Prol)e~ty. Property. The word "Property" means collectively the Real Property and the Personal Property. Real Property. The words "Real Property" mean the real property, interests and riglds, as further described in this Mortgage. Related Documents. The words "Related Documents" mean all promissory holeS, credit agreements, loan agreements, environmental agreements, guaranties, security agreements, mortgages, deeds of trust, security deeds, collateral mortgages, and all other i~strumenls, agreements and documents, whed~er now or hereafter existing, executed in connection wide the Indebtedness. Rents. The word "Rents" means all present and future rents, revenues, income, issues, royalties, profits, and other benefits derived from the Property. EACH GRANTOR ACKNOWLEDGES HAVING READ ALL THE PROVISIONS OF THIS MORTGAGE, AND EACH GRANTOR AGREES TO ITS TERMS. GRANTOR: Loan No: NEW 0 0 ,055 MORTGAGE (Continued) Page 9 INDIVIDUAL ACKNOWLEDGMENT ." MYCOMMtSSION EXihlqE~ SEPT. 20, 2007 On this day before me, the undersigned Notary Public, personally appeared R. Mike Lee, to me known to be the individual described in and who executed the Mortgage and acknowledged that he or she signed ' the Mortgage his or her free and voluntary act and deed for INDIVIDUAL ACKNOWLEDGMENT . MY COMMiS~iON EXPiRES I,.. ~ ~ uuMMISSlON EXP~pT On this day before me, the undersigned Notary Public, personally appeared Patti Lee, to me known to be the individual described in arm who executed the Mortgage, and acknowledged that he ~,r she signed the Mortga.~s his or her free and voluntary act and deed fo~ ll~e uses and purposes ~rein mentioned. ~~ ~~(~ / ' Given u?~er ¢'V han~~¢t s~ this [ -- - day of 20