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HomeMy WebLinkAbout90548331363 (Ol) RECEIVED 12/27/2004 at 10:29 AM RECEIVING # 905483 BOOK: 575 PAGE: 8i8 JEANNE WAGNER LINCOLN COUNTY CLERK, KEiViMERER, VVY State of Wyoming REAL ESTATE MORTGAGE (With Future Adval~:~; ~:l,'~l~.~e) 1. DATE AND PARTIES. The date of this Mortgage is 12-21-2004 are as follows: MORTGAGOR: BROKEN SKI POLE, LLC ~ Et ~3T[J_t-~ I_j_rr~te~ ~abi] [t~; C~qo~ny 744 B PORTOLA ST. SAN FRANCISCO, CA 94129 Space Above This Line For Recording Data and the parties and their addresses [] Refer to the Addendum which is attached and incorporated t~,;r~'ir~ for additional Mortgagors. LENDER: BANK OF JACKSON HOLE ORGANIZED AND EXISTING UNDER THE LAWS OF THE STATE £1F WYOMING 990 W. BROADWAY P.O. BOX 7000 JACKSON, WY 83002 MORTGAGE. For good and Valuable consideration, the receipt ~r~i ~ufficiency of which is acknowledged, and to secure the Secured Debt (hereafter defined), Mortgagor grants, bargain_~, ~:,~veys, mortgages and warrants to Lender, with the power of sale, the following described property: SEE ATTACHED EXHIBIT ~\ The property is located in LINCOLN at A PORTION OF LOT 5 NE 114 SW 114 AND NW {County) 114 OF SEC 4 , LINCOLN COUNTY , Wyoming {Address) ((:ity) (Zip Code) Together with all rights, easements, appurtenances, royalties, ~i~.'~al rights, oil and gas rights, crops, timber, all diversion payments or third party payments made to crop p~(~d~cel's, and all existing and future improvements, structures, fixtures, and replacements that may now, or at any ~,~ i~ the future, be part of the real estate described above (all referred to as "Property"). The term Property also i~)d~d~s, but is not limited to, any and all water wells, water, ditches, reservoirs, reservoir sites and dams located on th~ ~.~1 estate and all riparian and water rights associated with the Property, however established. WYOMING - AGRICULTURAL/COMMERCIAL REAL ESTATE SECURITY INSTRUMENT (N01 F, L Ir Jr,iA ~HLM~, FHA OR VA USE, AND NOT FOR CONSUMER PURPOSES) (page I of ,9) ~ © 1993, 200] Bankers Systems, Inc., St. Cloud, MN Form AGCO-RESI-WY 1/16 . 082 9 MAXIMUM OBLIGATION LIMIT. The total principal amount ct rt.: ,~h~cured Debt (hereafter defined) secured by this Mortgage at any one time shall not exceed $256,000.00 __. This limitation of amount does not include interest, loan charges, commitment fees, brokerage com~,:,~[~s, attorneys' fees and other charges validly made pursuant to this Mortgage and does not apply to advances (or i,m~,:~ acclued on such advances) made under the terms of this Mortgage to protect Lender's security and to perform an.,. ol d~e covenants contained in this Mortgage. Future advances are contemplated and, along with other future obligations% ~,~u secured by this Mortgage even though all or part may not yet be advanced. Nothing in this Mortgage, however, :~lmll constitute a commitment to make additional or future loans or advances in any amount. Any such commitment w~)~,id need to be agreed to in a separate writing. SECURED DEBT DEFINED. The term "Secured Debt" includes, bu~ ~:~ ~ limited to, the following: A. The promissory note(s), contract(s), guaranty(les) or ozhe~ ,v~du~ce of debt described betow and all extensions, renewals, modifications or substitutions. (When referen~:~rtq ;h~; debts below it is suggested that you include items such as borrowers' names and addresses, note p~J/~r'//~/ arc,cunts, commercial revolving loan agreement's maximum amount, interest rates, variable rate terms, mar',~/:y dares, etc.) PROMISSORY NOTE DATED 12-21-2004 IN THE AMOUNT OF $256,000.00 B. All future advances from Lender to Mortgagor or othel lt~l~e obligations of Mortgagor to Lender under any promissory note, contract, guaranty, or other evidence ~,I ~l~.l~t existing now or executed after this Mortgage whether or not this Mortgage is specifically referred to in tt~t; ,:vidunce of debt. C. All obligations Mortgagor owes to Lender, which now exi.~t o~ ~my later arise, to the extent not prohibited by law, including, but not limited to, liabilities for overdrafts ~,~h~li~j to any deposit account agreement between Mortgagor and Lender. D. All additional sums advanced and expenses incurred by L~;~,h, lu~ insuring, preserving or otherwise protecting the Property and its value and any other sums advanced a~ul .xpenses incurred by Lender under the terms of this Mortgage, plus interest at the highest rate in effect, from t~,, l~ time, as provided in the Evidence of Debt. E. Mortgagor's performance under the terms of any instrum,~l evidencing a debt by Mortgagor to Lender and any Mortgage securing, guarantying, or otherwise relating to ~1~: d,~ht. If more than one person signs this Mortgage as Mortgagor, eac!~ r~.,l~rgagor agrees that this Mortgage will secure all future advances and future obligations described above that a,e ',l~w~ ~o or incurred by any one or more Mortgagor, or any one or more Mortgagor and others. This Mortgage will not se~:~., a~y other debt if Lender fails, with respect to such other debt, to make any required disclosure about this Mortgage ,, ~1 l ~der fails to give any required notice of the right of rescission. PAYMENTS. Mortgagor agrees to make all payments on the Sem,~l [)cbt when due and in accordance with the terms of the Evidence of Debt or this Mortgage. CLAIMS AGAINST TITLE. Mortgagor will pay all taxes, asses,~,,~s, liens, encumbrances, lease payments, ground rents, utilities, and other charges relating to the Property when d~,,. Iender may require Mortgagor to provide to Lender copies of all notices that such amounts are due and the receipts u,.,id~;r~cir~g Mortgagor's payment. Mortgagor will defend title to the Property against any claims that would impair the ii,,.~ ~f this Mortgage. Mortgagor agrees to assign to Lender, as requested by Lender, any rights, claims or defenses vvl,,:l~ Mortgagor may have against parties who supply labor or materials to improve or maintain the Property. PRIOR SECURITY INTERESTS. With regard to any other mor'~j:,,.i,~, deed of trust, security agreement or other lien document that created a prior security interest or encumbrance ~,, ~l~u Property and that may have priority over this Mortgage, Mortgagor agrees: A. To make all payments when due and to perform or comply ~..,i[l~ ~1t covenants. B. To promptly deliver to Lender any notices that Mortgagor ~u~:~;~ws from the holder. C. Not to make or permit any modification or extension of, a~,,t ~ot ro request or accept any future advances under any note or agreement secured by, the other mortgage. ,h~.(;(t of trust or security agreement unless Lender consents in writing, DUE ON SALE OR ENCUMBRANCE. Lender may, at its option, d~:,:la~e the entire balance of the Secured Debt to be immediately due and payable upon the creation of any lien, encu~,l,.'~ce, transfer, or sale, or contract for any of these on the Property. However, if the Property includes Mortgagor's re:~L~,~ce, this section shall be subject to the restrictions imposed by federal law (12 C.F.R. 591), as applicable. For til~: lnlrt)oses of this section, the term "Property" also includes any interest to all or any part of the Property. This co,.,~,m~u shall run with the Property and shall remain in effect until the Secured Debt is paid in full and this Mortgage is E,~"'~-'~~ © 1993, 2001 Bankers Systems, Inc., St. Cloud, MN Form AGCO-RESI-WY 1/16: ' - (page 2 of 8) 9. TRANSFER OF AN INTEREST IN THE MORTGAGOR. If Morro ,!l~l ix an entity other than a natural person (such as a corporation or other organization), Lender may demand immediat~ l~;~¥menz if (1) a beneficial interest in Mortgagor is sold or transferred; (2) there is a change in either the identity or nuz~d~:~ et members of a partnership or similar entity; or (3) there is a change in ownership of more than 25 percent of the "."~t~.~l stock of a corporation or similar entity. However, Lender may not demand payment in the above situations if it is i:~l~t~jted by law as of the date of this Mortgage. 10. ENTITY WARRANTIES AND REPRESENTATIONS. If Mortgag~ ~:~ ~ entity other than a natural person (such as a corporation or other organization), Mortgagor makes to Lender ~1~,: ioltowing warranties and representations which shall be continuing as long as the Secured Debt remains outstanding: A. Mortgagor is an entity which is duly organized and vali~Jlv ,~.x~stlng in the Mortgager's state of incorporation (or organization). Mortgagor is in good standing in all state ,~ which Mortgagor transacts business. Mortgagor has the power and authority to own the Property and to ,.:~,~, o~ its business as now being conducted and, as applicable, is qualified to do so in each state in which M~, L!i.'~t~o~ operates. B. The execution, delivery and performance of this Mort~j;~..l,: hy Mortgagor and the obligation evidenced by the Evidence of Debt are within the power of Mortgagor, I):~t,,~ been duly authorized, have received all necessary governmental approval, and will not violate any provisior-, el i~w, or order of court or governmental agency. C. Other than disclosed in writing Mortgagor has not char~!l<:d ,t.~ ~)ame within the last ten years and has not used any other trade or fictitious name. Without Lender's p[~<)~ written consent, Mortgagor does not and will not use any other name and will preserve its existing name, I~,'~d~., ~mes and franchises until the Secured Debt is satisfied. 11 · PROPERTY CONDITION, ALTERATIONS AND INSPECTION· Mo~I!l:~!j~[ will keep the Property in good condition and make all repairs that are reasonably necessary. Mortgagor will giv,~ l~.[~der prompt notice of any loss or damage to the Property. Mortgagor will keep the Property free of noxious w~:ds ¢~r)d grasses. Mortgagor will not initiate, join in or consent to any change in any private restrictive covenant, zon,~!l ~di~ance or other public or private restriction limiting or defining the uses which may be made of the Property or ;~{~,,~ ~a[t of the Property, without Lender's prior written consent. Mortgagor will notify Lender of all demands, proceedi~!!..~, claims, and actions against Mortgagor or any other owner made under law or regulation regarding use, ownership ,,~,l ~)ccupancy of the Property. Mortgagor will comply with all legal requirements and restrictions, whether public or p~v,,~;, with respect to the use of the Property. Mortgagor also agrees that the nature of the occupancy and use will not ch,',~!h.' without Lender's prior written consent. No portion of the Property will be removed, demolished or r~;~r,~lly altered without Lender's prior written consent except that Mortgagor has the right to remove items of persomd i~l~erty comprising a part of the Property that become worn or obsolete, provided that such personal property is replac~d willl other personal property at least equal in value to the replaced personal property, free from any title retention d~:,..,r,;,~, security agreement or other encumbrance. Such replacement of personal property will be deemed subject to th~ :~,:~:tl~ity interest created by this Mortgage. Mortgagor shall not partition or subdivide the Property without Lender's t~ written consent. Lender or Lender's agents may, at Lender's option, enter the Property at any reasonable time for ~1~,~ i,~pose of inspecting the Property. Any inspection of the Property shall be entirely for Lender's benefit and Mortgagor wili ul ilo way rely on Lender's inspection. 12. AUTHORITY TO PERFORM. If Mortgagor fails to perform any ~t Mortgager's duties under this Mortgage, or any other mortgage, deed of trust, security agreement or other lien doour,,,~r~z ~hat has priority over this Mortgage, Lender may, without notice, perform the duties or cause them to beperform~;d Mo~rgagor appoints Lender as attorney in fact to sign Mortgager's name or pay any amount necessary for performam:,~ II ~)y construction on the Property is discontinued or not carried on in a reasonable manner, Lender may do whateve~ ~:; ~;cessary to protect Lender's security interest in the Property. This may include completing the construction. Lender's right to perform for Mortgagor shall not create an obli,q¢,~)r~ lo perform, and Lender's failure to perform will not preclude Lender from exercising any of Lender's other rights t~,i~:~ tt~e law or this Mortgage. Any amounts paid by Lender for insuring, preserving or otherwise protecting the Prop~;, ~d Lender's security interest will be due on demand and will bear interest from the date of the payment until paid i~ lt~lt at the interest rate in effect from time to time according to the terms of the Evidence of Debt. 13. ASSIGNMENT OF LEASES AND RENTS· Mortgagor assigns, (t~:,~s, bargains, conveys, mortgages and warrants to Lender as additional security all the right, title and interest in the r~,llowir~g (Property). A. Existing or future leases, subleases, licenses, guaranties. ~,d ¢~r~y other written or verbal agreements for the use and occupancy of the Property, including but not !i~:,~,~,l to, any extensions, renewals, modifications or replacements (Leases). B. Rents, issues and profits, including but not limited t~. :,~¢,;~rity deposits, minimum rents, percentage rents, additional rents, common area maintenance charges, p~ku~.l r:h~rges, real estate taxes, other applicable taxes, insurance premium contributions, liquidated damages folh,vvl~g default, cancellation premiums, "loss of rents" insurance, guest receipts, revenues, royalties, proceeds, t)()~tlses, accounts, contract rights, general intangibles, and all rights and claims which Mortgagor may have th~,~ H~ arW way pertain to or are on account of the use or occupancy of the whole or any part of the Property In the event any item listed as Leases or Rents is determined i~) h~.~ personal property, 'this Assignment will also be regarded as a security agreement. {page 3 of 8) ~"~-'~'~/~ ©1993, 2001 Bankers Systems, Inc., St. Cloud, MN Form AGCO-RESI-WY 1.1,:, . Mortgagor will promptly provide Lender with copies of the Le:,,;>. nmi will certify these Leases are true and correct copies. The existing Leases will be provided on execution of ti~t: ',:~:~lgrlnlent, and all of the future Leases and any other information with respect to these Leases will be provided imm,:~li ,I,;ly after they are executed. Mortgagor may collect, receive, enjoy and use the Rents so long as Mortgagor is not in ~l,:i;,uHt. Mortgagor will not collect in advance any Rents due in future lease periods, unless Mortgagor first obtains Lendt~'r ':, w~tzen consent. Upon default, Mortgagor will receive any Rents in trust for Lender and Mortgagor will not commingle ~1,,; I~zs with any other funds. When Lender so directs, Mortgagor will endorse and deliver any payments of Rents f~ H~e P~operty to Lender. Amounts collected will be applied at Lender's discretion to the Secured Debts, the costs {~t ~;~ging, pretecting and preserving the Property, and other necessary expenses. Mortgagor agrees that this Security h~;I~t.~ent is immediately effective between Mortgagor and Lender. This Security Instrument will remain effective dt~,,i m~y statutory redemption period until the Secured Debts are satisfied. Unless otherwise prohibited or prescribed m ~ze law, Mortgagor agrees that Lender may take actual possession of the Property without the necessity of com~,,:~,,:~c.j any legal action or proceeding. Mortgagor agrees that actual possession of the Property is deemed to occur wh.~ ! ¢-~cter notifies Mortgagor of Mortgager's default and demands that Mortgagor and Mortgager's tenants pay all Rent- m~t¢ o~ to become due directly to Lender. Immediately after Lender gives Mortgagor the notice of default, Mortgagor ,,,!,,~,~:, tl~at either Lender or Mortgagor may immediately notify the tenants and demand that all future Rents be paid direcll.,, l~ [ e~tder. As long as this Assignment is in effect, Mortgagor warrants ami i,:l:i~.~sents that no default exists under the Leases, and the parties subject to the Leases have not violated any apptic;,t~l,: l;~w on leases, licenses and landlords and tenants. Mortgagor, at its sole cost and expense, will keep, observe ami i,,:~lo~m, and require all other parties to the Leases to comply with the Leases and any applicable law. If Mortgagor u~ ;~y I~arty to the Lease defaults or fails to observe any applicable law, Mortgagor will promptly notify Lender. If Mortg;,!l~ ~.~glects or refuses to enforce compliance with the terms of the Leases, then Lender may, at Lender's option, enforc~: ~;c~mpliance. Mortgagor will not sublet, modify, extend, cancel, or otherwise ;,It~ ~i~e Leases, or accept the surrender of the Property covered by the Leases (unless the Leases so require) without L~;¢~l,;~'s consent. Mortgagor will not assign, compromise, subordinate or encumber the Leases and Rents without Lend,:..., i}~tor written consent. Lender does not assume or become liable for the Property's maintenance, depreciation, or ml~ losses or damages when Lender acts to manage, protect or preserve the Property, except for losses and damco,.;: ~h~e ~o Lender's gross negligence or intentional torts. Otherwise, Mortgagor will indemnify Lender and hold Lender t~,~,l~:~s for all liability, loss or damage that Lender may incur when Lender opts to exercise any of its remedies against ~,~ i~;,~ty obligated under the Leases. 14. CONDOMINIUMS; PLANNED UNIT DEVELOPMENTS. If the Prol~:~ty ii~:ludes a unit in a condominium or a planned unit development, Mortgagor will perform all of Mortgager's duti,:..:.~ tlllcJer the covenants, by-laws, or regulations of the condominium or planned unit development. 15. DEFAULT. Mortgagor will be in default if any of the following A. Any party obligated on the Secured Debt fails to make p~v~m~t when due; B. A breach of any term or covenant in this Mortgage, ~'~, m~ mortgage or any construction loan agreement, security agreement or any other document evidencing, g~m~.~W~ng, securing or otherwise relating to the Secured Debt; C. The making or furnishing of any verbal or written represu~,~uu~, statement or warranty to Lender that is false or incorrect in any material respect by Mortgagor or any pe~,.~,~ ~r r,~ntity obligated on the Secured Debt; D. The death, dissolution, or insolvency of, appointment o! ;~ ~,;culve~ for, or application of any debtor relief law to, Mortgagor or any person or entity obligated on the Secu~t¢,l E. A good faith belief by Lender at any time that Lender is ~,:,¢,:~e with respect to any person or entity obligated on the Secured Debt or that the prospect of any payment is ~l~m~ed or the value of the Property is impaired; F. A material adverse change in Mortgager's business inch~,li~g ownership, management, and financial conditions, which Lender in its opinion believes impairs the value of ~1~,~ I'~perty or repayment of the Secured Debt; or G. Any loan proceeds are used for a purpose that will cont~b~i~; to excessive erosion of highly erodible land or to the conversion of wetlands to produce an agricultural commonality, ;~s further explained in 7 C.F.R. Part 1940, Subpart G, Exhibit M. 16. REMEDIES ON DEFAULT. In some instances, federal and state I;,w will require Lender to provide Mortgagor with notice of the right to cure, mediation notices or other notices and may ~:mblish time schedules for foreclosure actions. Subject to these limitations, if any, Lender may accelerate the Secured Ll,:!~i ~d foreclose this Mortgage in a manner provided by law if this Mortgagor is in default. At the option of Lender, all or any part of the agreed fees a~,i ~:l~,'~rges, accrued interest and principal shall become immediately due and payable, after giving notice if required by h~w, upon the occurrence of a default or anytime thereafter. In addition, Lender shall be entitled to all the remedie:; t~¢vided by law, the Evidence of Debt, other evidences of debt, this Mortgage and any related documents including willpower limitation, the power to sell the Property: All remedies are distinct, cumulative and not exclusive, and the Le~H,.:~ is entitled to all remedies provided at law or equity, whether expressly set forth or not. The acceptance by Lender ct ~y stem in payment or partial payment on the Secured Debt after the balance is due or is accelerated or after foreclost~; F~oceedings are filed shall not constitute a waiver of Lender's right to require full and complete cure of any existin!t ,h:lntdt. By not exercising any remedy on Mortgager's default, Lender does not waive Lender's right to later consider th,; ,¢w;~ a default if it continues or happens again. (page 4 of 8) 17. EXPENSES; ADVANCES ON COVENANTS; ATTORNEYS' FEES; COLLECTION COSTS. Except when prohibited by law, Mortgagor agrees to pay all of Lender's expenses if Mortgagor t~,~.~,:l~:~s any covenant in this Mortgage. Mortgagor will also pay on demand all of Lender's expenses incurred in collectlr~!t. ~l)~Jring, preserving or protecting the Property or in any inventories, audits, inspections or other examination by Le~d,~ ~ ~uspect to the Property. Mortgagor agrees to pay all costs and expenses incurred by Lender in enforcing or protec:~!j L~:[)der's rights and remedies under this Mortgage, including, but not limited to, attorneys' fees, court costs, and oti~;~ h~[jaJ expenses. Once the Secured Debt is fully and finally paid, Lender agrees to release this Mortgage and Morto~,,l~ ~(j~ees to pay for any recordation costs. All such amounts are due on demand and will bear interest from the time <~1 tl~~, advance at the highest rate in effect, from time to time, as provided in the Evidence of Debt and as permitted by 18. ENVIRONMENTAL LAWS AND HAZARDOUS SUBSTANCES. As ~-.~d ~r~ this section, (1) "Environmental Law" means, without limitation, the Comprehensive Environmental Response, ~:<~q~ensation and Liability Act (CERCLA, 42 U.S.C. 9601 et seq.), all other federal, state and local laws, regulations, ~di~nces, court orders, attorney general opinions or interpretive letters concerning the public health, safety, welf~,~,~, elwh'onment or a hazardous substance; and (2) "Hazardous Substance" means any toxic, radioactive or hazardou:~ ~,~[erial, waste, pollutant or contaminant which has characteristics which render the substance dangerous or poten[~;~ll/ <h~gerous to the public health, safety, welfare or environment. The term includes, without limitation, any substances:; d~di~ed as "hazardous material," "toxic substances," "hazardous waste" or "hazardous substance" under any Environr~)~t;,l [ aw. Mortgagor represents, warrants and agrees that, except as previously disclosed and acknowledged in writing: A. No Hazardous Substance has been, is, or will be located, ~;,~'.-;I)o~ted, manufactured, treated, refined, or handled by any person on, under or about the Property, except in ~t~ :~(Jir~ary course of business and in strict compliance with all applicable Environmental Law. B. Mortgagor has not and will not cause, contribute to, or i~,~[~t the release of any Hazardous Substance on the Property. C. Mortgagor will immediately notify Lender if (1) a release o~ ~i~,~;~toned release of Hazardous Substance occurs on, under or about the Property or migrates or threatens to m~j~;,(,; flor'n nearby property; or (2) there is a violation of any Environmental Law concerning the Property. In such ~,~ ,~vent, Mortgagor will take all necessary remedial action in accordance with Environmental Law. D. Mortgagor has no knowledge of or reason to believe the~; ~:- ~y pending or threatened investigation, claim, or proceeding of any kind relating to (1) any Hazardous Sub~:~;~,:~; located on, under or about the Property; or (2) any violation by Mortgagor or any tenant of any Environm~;~t;d t ~w. Mortgagor will immediately notify Lender in writing as soon as Mortgagor has reason to believe there i:-. ~y such pending or threatened investigation, claim, or proceeding. In such an event, Lender has the right, but ~ tt~(~. obligation, to participate in any such proceeding including the right to receive copies of any documents rela~i~!I ~o stich proceedings. E. Mortgagor and every tenant have been, are and shall rem~t~ ~ t~dl compliance with any applicable Environmental Law. F. There are no underground storage tanks, private dumps o~ ~l~:~ wells located on or under the Property and no such tank, dump or well will be added unless Lender first ct~ ~;~.l~ts in writing. G. Mortgagor will regularly inspect the Property, monitor the ;,:I,viti~s and operations on the Property, and confirm that all permits, licenses or approvals required by any ~pi~li,;¢~hle Environmental Law are obtained and complied with. H. Mortgagor will permit, or cause any tenant to permit, Lend,;~ ~}~ Lender's agent to enter and inspect the Property and review all records at any reasonable time to dete~t~, (1) the existence, location and nature of any Hazardous Substance on, under or about the Property; (2) II~: ,,'xistence, location, nature, and magnitude of any Hazardous Substance that has been released on, under o~ ~d)(~Ht the Property; or (3) whether or not Mortgagor and any tenant are in compliance with applicable Environlllt~,~l;~l I. Upon Lender's request and at any time, Mortgagor a~.j~;~, at Mortgagor's expense, to engage a qualified environmental engineer to prepare an environmental audit ~1 ~1~.· P~operty and to submit the results of such audit to Lender. The choice of the environmental engineer who w, ill i>~.,~form such audit is subject to Lender's approval. d. Lender has the right, but not the obligation, to perform ~r~,/ ~f Mortgagor's obligations under this section at Mortgagor's expense. K. As a consequence of any breach of any representation, w,'~l;~y or promise made in this section, (1) Mortgagor will indemnify and hold Lender and Lender's successors ol ,'~:;~igl~s harmless from and against all losses, claims, demands, liabilities, damages, cleanup, response and ~,~.~,.'di~tion costs, penalties and expenses, including without limitation all costs of litigation and attorneys' fees, w,l~i~;h Lender and Lender's successors or assigns may sustain; and (2) at Lender's discretion, Lender may relea2~ ll~i~ Mortgage and in return Mortgagor will provide Lender with collateral of at least equal value to the Property :-;~:~:~lre(J by this Mortgage without prejudice to any of Lender's rights under this Mortgage. L. Notwithstanding any of the language contained in this Mol~(l,'L0e to the contrary, the terms of this section shall survive any foreclosure or satisfaction of this Mortgage ~:!l~,dless of any passage of title to Lender or any disposition by Lender of any or all of the Property. Any claill~ ;~ defenses to the contrary are hereby waived. 19. CONDEIVINATION. Mortgagor will give Lender prompt notice of ,-~y ~.~ction, real or threatened, by private or public entities to purchase or take any or all of the Property, including ;~l~'/ ~.:~.~ements, through condemnation, eminent domain, or any other means. Mortgagor further agrees to notify Lender ol ~,¢~y i}roceedings instituted for the establishment of any sewer, water, conservation, ditch, drainage, or other district rela~h~,j to or binding upon the Property or any part of it. Mortgagor authorizes Lender to intervene in Mortgagor's name ir~ .',,~¥ oi the above described actions or claims and to collect and receive all sums resulting from the action or claim. Mo~!l,,!~, assigns to Lender the proceeds of any award or claim for damages connected with a condemnation or other takin.~j ~l ,'dl or any part of the Property. Such proceeds shall be considered payments and will be applied as provided in this M~¢~!F~(le. This assignment of proceeds is subject to the terms of any prior mortgage, deed of trust, security agreement or o~l~ lidn document. (page 5 of 8) F_~(~-~ © 1993, 2001 B~nker~ Systems, Inc.. St. Cloud, MN Form AGCO-RESI-WY 1/162 20. INSURANCE· Mortgagor agrees to maintain insurance as follows: A. Mortgagor shall keep the Property insured against loss t~¢ l i~.., zt~eft and other hazards and risks reasonably associated with the Property due to its type and Iocatio¢~ (~t~er hazards and risks may include, for example, coverage against loss due to floods or flooding. This inst~;~:~: shall be maintained in the amounts and for the periods that Lender requires. What Lender requires pursu~,~l i~ ff~e preceding two sentences can change during the term of the Secured Debt. The insurance carrier providi~!t ~1~¢ insurance shall be chosen by Mortgagor subject to Lender's approval, which shall not be unreasonably ,~'~!ld~:id. If Mortgagor fails to maintain the coverage described above, Lender may, at Lender's option, obta~ .:~,w~age to protect Lender's rights in the Property according to the terms of this Mortgage. All insurance policies and renewals shall be acceptable to i ,:~d~., and shall include a standard "mortgage clause" and, where applicable, "lender loss payee clause." Morto~!l~,~ .~hall immediately notify Lender of cancellation or termination of the insurance. Lender shall have the right ~ I~old the policies and renewals. If Lender requires, Mortgagor shall immediately give to Lender all receipts ~;i I~id premiums and renewal notices. Upon loss, Mortgagor shall give immediate notice to the insurance c¢~,~ ,'~r~d Lender. Lender may make proof of loss if not made immediately by Mortgagor. Unless Lender and Mortgagor otherwise agree in writing, ~,~ce proceeds shall be applied to restoration or repair of the Property damaged if the restoration or repa~l ~ ~;~:or~omically feasible and Lender's security is not lessened. If the restoration or repair is not economically ~,~;,,~ihle or Lender's security would be lessened, the insurance proceeds shall be applied to the Secured Deh~ v~'t,~;ther or not then due, with any excess paid to Mortgagor. If Mortgagor abandons the Property, or does r~ot ~-~we~ within 30 days a notice from Lender that the insurance carrier has offered to settle a claim, then Lende~ ~;~¥ collect the insurance proceeds. Lender may use the proceeds to repair or restore the Property or to pay tl~,~ ,~;,~:~red Debt whether or not then due. The 30-day period will begin when the notice is given. Unless Lender and Mortgagor otherwise agree in writing, a~,,/ ;,pplication of proceeds to principal shall not extend or postpone the due date of scheduled payments or cllali~)(; Ule amount of the payments. If the Property is acquired by Lender, Mortgagor's right to any insurance t~oli~:i~¢s and proceeds resulting from damage to the Property before the acquisition shall pass to Lender to zt~ ~x~em of the Secured Debt immediately before the acquisition. Mortgagor agrees to maintain comprehensive general liability ir~sL~rance naming Lender as an additional insured in an amount acceptable to Lender, insuring against claims ;,~i:~i~g from any accident or occurrence in or on the Property. Mortgagor agrees to maintain rental loss or business inte~l;t~o~ i~surance, as required by Lender, in an amount equal to at least coverage of one year's debt service, ,,~d ~equired escrow account deposits (if agreed to separately in writing), under a form of policy acceptable ~o 21. NO ESCROW FOR TAXES AND INSURANCE. Unless otherwise pr(~v~,~,~d In a separate agreement, Mortgagor will not be required to pay to Lender funds for taxes and insurance in escrow. 22. FINANCIAL REPORTS AND ADDITIONAL DOCUMENTS. Mortg~r.j~ will provide to Lender upon request, any financial statement or information Lender may deem necessary. Mortgagor vv;~¢~¢~nts that all financial statements and information Mortgagor provides to Lender are, or will be, accurate, correct, a~d ~:~mplete. Mortgagor agrees to sign, deliver, and file as Lender may reasonably request any additional documents o~ ~:,¢~ifir:ations that Lender may consider necessary to perfect, continue, and preserve Mortgagor's obligations under thi~ [vl~trjage and Lender's lien status on the Property. If Mortgagor fails to do so, Lender may sign, deliver, and file suct~ ~h~;uments or certificates in Mortgagor's name and Mortgagor hereby irrevocably appoints Lender or Lender's agent ~ ;~ltor~ey in fact to do the things necessary to comply with this section. 23. JOINT AND INDIVIDUAL LIABILITY; CO-SIGNERS; SUCCESSORS AND ASSIGNS BOUND. All;duties under this Mortgage are joint and individual. If Mortgagor signs this Mortgage but does ~ ~,!]n the Evidence of Debt, Mortgagor does so only to mortgage Mortgagor's interest in the Property to secure payment; ~ the Secured Debt and Mortgagor does not agree to be personally liable on the Secured Debt. Mortgagor agrees tl-~ i ~:l~cle~ and any party to this Mortgage may extend, modify or make any change in the terms of this Mortgage or the [~vldb'll(.'e of Debt without Mortgagor's consent. Such a change will not release Mortgagor from the terms of this Mortgag~. I I~e duties and benefits of this Mortgage shall bind and benefit the successors and assigns of Mortgagor and Lender. ~: If this Mortgage secures a guaranty between Lender and Mortga.rj~ ~d does not directly secure the obligation which is guarantied, Mortgagor agrees to waive any rights that may prev.;~l L~l~cler from bringing any action or claim against Mortgagor or any party indebted under the obligation including, but ~¢~ h~ited to, anti-deficiency or one-action laws. ~'~'~u © 1993, 2001 Bankers Sy~tem~, Inc,, St. Cloud, MN Form AGCO-RESI-WY 1/16 £ , (page 6 of 8) 24. APPLICABLE LAW; SEVERABILITY; INTERPRETATION. This M., [, :.!I. is governed by the laws of the jurisdiction in which Lender is located, except to the extent otherwise require,, t,y dte laws of the jurisdiction where the Property is located. This Mortgage is complete and fully integrated. This M~,l!}a.qe may not be amended or modified by oral agreement. Any section or clause in this Mortgage, attachmem:-, ,~ any agreement related to the Secured Debt' that conflicts with applicable law will not be effective, unless that law ,:×l.~ssly or impliedly permits the variations by written agreement. If any section or clause of this Mortgage cannot be ,~r~to~ced according to its terms, that section or clause will be severed and will not affect the enforceability of the rema.~,i,~, .1 this Mortgage. Whenever used, the singular shall include the plural and the plural the singular. The captions a~,l I.;adings of the sections of This Mortgage are for convenience only and are not to be used to interpret or define th. ~.r~s of this Mortgage. Time is of the essence in this Mortgage. 25. NOTICE. Unless otherwise required by law, any notice shall be giv~r~ by delivering it or by mailing it by first class mail to the appropriate party's address on page 1 of this Mortgage, or ~o .~y other address designated in writing. Notice to one mortgagor will be deemed to be notice to all mortgagors. 26. WAIVERS. Except to the extent prohibited by law, Mortgagor v,..,v.,~ ar~y right regarding the marshalling of liens and assets and all homestead exemption rights relating to the Properw 27. U.C.C. PROVISIONS. If checked, the following are applicable to, b~ ~to nm limit, this Mortgage: [] Construction Loan. This Mortgage secures an obligation ,,c~,:c~d for the construction of an improvement on the Property. [] Fixture Filing. Mortgagor grants to Lender a security im~.~.,~:l in all goods that Mortgagor owns now or in the future and that are or will become fixtures related to the [] Crops; Timber; Minerals; Rents, Issues and Profits. Mo~!!.tF~ g~ants to Lender a security interest in all crops, timber and minerals located on the Property as well as ail ~c~.~ ~ssues, and profits of them including, but not limited to, all Conservation Reserve Program (CRP) and Pay~.~,~ in Kind (PIK) payments and similar governmental programs (all of which shall also be included in the term [] Personal Property, Mortgagor grants to Lender a security .~.,~;~ in all personal property located on or connected with the Property. This security interest includes all farn, ;,.,I.c~s, inventory, equipment, accounts, documents, instruments, chattel paper, general intangibles, and all ofl~.~ the future and that are used or useful in the construction, -w~.,'ship, operation, management, or maintenance of the Property. The term "personal property" specifically ex,:l.de.s ~ha~ property described as "household goods" secured in connection with a "consumer" loan as thos~ t,,ms are defined in applicable federal regulations governing unfair and deceptive credit practices. [] Filing As Financing Statement. Mortgagor agrees and .-k~.~wledges that this Mortgage also suffices as a financing statement and as such, may be filed of record a~ ,', tmancing statement for purposes of Article 9 of the Uniform Commercial Code. A carbon, photographic, image ~, mher reproduction of this Mortgage is sufficient as a financing statement. 28. OTHER TERMS. If checked, the following are applicable to this Mur t!F,{je: [] Line of Credit. The Secured Debt includes a revolving line (~1 <:~edit provision. Although the Secured Debt may be reduced to a zero balance, This Mortgage will remain in effe,;I (.)iii released. [] Separate Assignment. The Mortgagor has executed or wilt .x.c.~e a separate assignment of leases and rents. If the separate assignment of leases and rents is properly exc~(:~t<~d and recorded, then the separate assignment will supersede This Security Instrument's "Assignment of Leases .r)d l~enzs" section. [] Additional Terms. ~ © 1993, 2001 Bankers Systems, Inc., St. Cloud, MN Form AGCO-RESI-WY 1/162 (page 7 of 8) ~OO~/9£/L AfiA-IS~IiJ-ODDV ~..-i ,'..q 'pnolD Z~ ";uI 'suJe~.sAS sJe;~uel] t 00~ '£66t ~) (a!lqnd MelON) ~q uo (Mpu:t ~o ssau!sns:l ~o atueN) 'ss { ~N¥c1~03 ~J.~lllAII1 ¥1NSOJI'I¥3 e ~ 311 ':I10d DIS N3)i08B ~~i~J :],WQ~'~NII~J NY1 :~]NIlI~ 1191N :ISBO-I NOr Aq jo Aep ...... . ..~-'~ s!q~. ~LU ~b,~P~ SeNt ~U@LUnnsu! s!q_L · oo ~q~T~q~ pa~TmTq ~uT~o~a ~ '~ 'SlU@LUfipalN~OU)tOe pue saJnleuB!s 'sJofieSiJo~ leuo!z!ppe Joj u!amq p@leJodJoou! pue patt:~¢llu si qa!qN~ LunpuappV aq:r o~ J@ja)3 [] B39¥N¥1NIB3BIN3~ '3NlI~ l:JglN(.~m.umsl B39 YNVlAIIB :IBIAI]IAI 'aNllV'J 311 '310d I:~S N3)~0BB :eUJeN A*P'u3 p@lep pue paufi!s uo!~nlos@j Aq ~Olaq flululh.: ::;*lim'd @Lt~ o~ p@lueJD se~A Al!Joqlne lenZov [] 'L @lSed uo a^oqe p@lels @lep ~tp. uo 9beBijo~ S!Li:~ Jo Adoo e jo zd!;,:., ~ saSpal~ou~oe OSle jofielSzJOlAI 'S~.U@LULIOeZle Aue u! pue aBelSiJo~ S!LIZ u] p@u!eluoo s~ueu@^oo pue suJj@1 aLI1 ol s;,;,l*iu lo[SeblJo~ 'MOl@q ~uluBIs A~] 24. APPLICABLE LAW; SEVERABILITY; INTERPRETATION. This Mo~ tUacje is governed by the laws of the jurisdiction in which Lender is located, except to the extent otherwise required hy the laws of the jurisdiction where the Property is located. This Mortgage is complete and fully integrated. This I,.'h~toage may not be amended or modified by oral agreement. Any section or clause in this Mortgage, attachmem~:, or any agreement related to the Secured Debt that conflicts with applicable law will not be effective, unless that law ,×p~essly or impliedly permits the variations by written agreement. If any section or clause of this Mortgage cannot be ,~do~ced according to its terms, that section or clause will be .severed and will not affect the enforceability of the remai~M~;r of this Mortgage. Whenever used, the singular shall include the plural and the plural the singular. The captions ami t~eadings of the sections of this Mortgage are for convenience only and are not to be used to interpret or define th~., (~;r[ns of this Mortgage. Time is of the essence in this Mortgage. 25. NOTICE. Unless otherwise required by law, any notice shall be gi':,;[~ by delivering it or by mailing it by first class mail to the appropriate party's address on page 1 of this Mortgage, or m ~;' other address designated in writing. Notice to one mortgagor will be deemed to be notice to all mortgagors. 26. WAIVERS. Except to the extent prohibited by law, Mortgagor w;,~ws any right regarding the marshalling of liens and assets and all homestead exemption rights relating to the Properw 27. U.C.C. PROVISIONS. If checked, the following are applicable to, hu~ do not limit, this Mortgage: [] Construction Loan. This Mortgage secures an obligation ~;,:~rred for the construction of an improvement on the Property. [] Fixture Filing. Mortgagor grants to Lender a security inh~,,~;t in all goods that Mortgagor owns now or in the future and that are or will become fixtures related to the [] Crops; Timber; Minerals; Rents, Issues and Profits. Mortdado~ grants to Lender a security interest in all crops, timber and minerals located on the Property as well as all ~cm.s, issues, and profits of them including, but not limited to, all Conservation Reserve Program (CRP) and Pa,/~tc~t in Kind (PIK) payments and similar governmental programs (all of which shall also be included in the term [] Personal Property, Mortgagor grants to Lender a security ~t~est in all personal property located on or connected with .the Property. This security interest includes all farn~ I~ludUc~s, inventory, equipment, accounts, documents, instruments, chattel paper, general intangibles, and all od,~.~ ~tcrns of personal property Mortgagor owns now or in the future and that are used or useful in the construction, ,~w[~ership, operation, management, or maintenance of the Property. The term "personal property" specifically u×,:h~des that property described as "household goods" secured in connection with a "consumer" loan as tho.~: terms are defined in applicable federal regulations governing unfair and deceptive credit practices. [] Filing As Financing Statement. Mortgagor agrees and ~.;k~owledges that this Mortgage also suffices as a financing statement and as such, may be filed of record a~ a linancing statement for purposes of Article 9 of the Uniform Commercial Code. A carbon, photographic, imao~ ~ griper reproduction of this Mortgage is sufficient as a financing statement. 28. OTHER TERMS. If checked, the following are applicable to this M~ h}aoe: [] Line of Credit. The Secured Debt includes a. revolving line ~1 credit provision. Although the Secured Debt may be reduced to a zero balance, this Mortgage will remain in eff~,:~ ~nil released. [] Separate Assignment. The Mortgagor has executed or wilt ~'xecute a separate assignment of leases and rents. If the separate assignment of leases and rents is properly ex,~:ulod and recorded, then the separate assignment will supersede this Security Instrument's "Assignment of Lease.~ ~,rld Rents" section. [] Additional Terms. ~ © 1993, 2001 Bankers Systems, Inc., St. Cloud, MN Form AGCO-RESI-WY ~i/1G'C,).:.~ [page ? of 8) SIGNATURES: By signing below, Mortgagor ;~!lro. es to the terms and covenants contained in this Mortgage and in any attachments. Mortgagor also acknowledge.~ ~,~,:,;ipt of a copy of this Mortgage on the date stated above on Page 1. [] Actual authority was granted to the pmti~,.~. :;igning below by resolution signed and dated Entity N,ma: BROKEN SKI POLE, LLC (SignatureilAN MILNE, MEMBER/MANAGER {Date) / /~Date~l (Signature)NIGEL MILNE, MEMBER/MANAGER (Signature)DAVE BUCHOLZ, MEMBER (Date) {Date) [] Refer to the Addendum which is att,,:l~d and incorporated herein for additional Mortgagors, signatures and acknowledgments. STATE OF -, (Individual) , COUNTY OF This instrument was acknowledfl~;d h,.~I?.!e me this My commission expires: SS, {Business or Entity ^cx.ow~.dgm..~) of BROKEN SKI POLE, LLC ~ STATE OF ~, (' _C~.~- COUNTY OF ' '~----'~/'"~' } ss?./' This instrument was acknowled.qed h!.dore me ,"? day of /F'~.~9~' f ~~ by '~E;IAN MILNE; MEMBERIMANAGER~~F~~-- (Title(s)) a ~]j~[~::i t~ Liabi li ~ ~ {N.m. of Business or Entity) a ~~ My commission expires: COMM..~ ~ .~r...,, .., (~l~ ~-~J!'Ft NOTARY PUBLI',~I~,i_!! P~CER CO, JrFf ':' COMM. ~(P. MAY ¢~, ;008 on behalf of the business or entity. ~,~---'~M ©1993, 2001 Bankers Systems, Inc,, St. CIo~,~, t.!t! Form AGCO*RE$1-WY 1/16/2003 (page 8 of 8) 24. APPLICABLE LAW; SEVERABILITY; INTERPRETATION. This M:~t!j;L00 is governed by the laws of the jurisdiction in which Lender is located, except to the extent otherwise require~l [Dy the laws of the jurisdiction where the Property is located. This Mortgage is complete and fully integrated. This M~[t~jage may not be amended or modified by oral agreement. Any section or clause in this Mortgage, attachmef~t~;, or af~y agreement related to the Secured Debt that conflicts with applicable law will not be effective, unless that law ~;Xl~essly or impliedly permits the variations by written agreement. If any section or clause of this Mortgage cannot be ~:~rced according to its terms, that section or clause will be .severed and will not affect the enforceability of the rema~)~h~ of this Mortgage. Whenever used, the singular shall include the plural and the plural the singular. The captions ;,~,J ~e~,dings of the sections of this Mortgage are for convenience only and are not to be used to interpret or define ~l~; t~r~s of this Mortgage. Time is of the essence in this Mortgage. 2[;. NOTICE. Unless otherwise required by law, any notice shall be giw;~ by delivering it or by mailing it by first class mail to the appropriate party's address on page 1 of this Mortgage, or to ~,/ other address designated in writing. Notice to-one mortgagor will be deemed to be notice to all mortgagors. 2.6. WAIVERS. Except to the extent prohibited by law, Mortgagor w';,~ves any right regarding the marshalling of liens and assets and all homestead exemption rights relating to the Property. 2.7. U.C.C. PROVISIONS. If checked, the following are applicable to, b~t do not limit, this Mortgage: [] Construction Loan. This Mortgage secures an obligation i[~(:u~red for the construction of an improvement on the Property. [] Fixture Filing. Mortgagor grants to Lender a security inte~,;~t in all goods that Mortgagor owns now or in the future and that are or will become fixtures related to the [] Crops; Timber; Minerals; Rents, Issues and Profits. Mort~j;~j~;r grants to Lender a security interest in all crops, timber and minerals located on the Property as well as ~1[ ~er~ts, issues, and profits of them including, but not limited to, all Conservation Reserve Program (CRP) and Pa¥~,.~t in Kind (PIK) payments and similar governmental programs (all of which shall also be included in the term "P~ ~)t~rW"). [] Personal Property. Mortgagor grants to Lender a security ir=t~st in all personal property located on or connected with .the Property. This security interest includes all farm I~[oducts, inventory, equipment, accounts, documents, instruments, chattel paper, general intangibles, and all othe~ itu~s of personal p~operty Mortgagor owns now or in the future and that are used or useful in the construction, ~w~ership, operation, management, or maintenance of the Property. The term "personal property" specifically e×~:h~des that property described as "household goods" secured in connection with a "consumer" loan as tho~, t~,ms are defined in applicable federal regulations governing unfair ah;d deceptive credit practices. [] Filing As Financing Statement. Mortgagor agrees and ;,ck~owledges that this Mortgage also suffices as a financing statement and as such, may be filed of record ~,s ~ li~ancing statement for purposes of Article 9 of the Uniform Commercial Code. A carbon, photographic, image o~ other reproduction of this Mortgage is sufficient as a financing statement. 28. OTHER TERMS. If checked, the following are applicable to this [] Line of Credit. The Secured Debt includes a revolving line of ~'~edit provision. Although the Secured Debt may be reduced to a zero balance, this Mortgage will remain in effect ~[)til released. [] Separate Assignment. The Mortgagor has executed or will (;xeeute a separate assignment of leases and rents. If the separate assignment of leases and rents is properly ex(~.c(~t(.,d and recorded, then the separate assignment will supersede this Security Instrument's "Assignment of Leases ~d ~ents" section. [] Additional Terms. ~ © 1993, 2001 Bankers Systems, Inc., St. Cloud, MN Form AGC0-RESI-WY 1116/200~ [page ? of 8) SIGNATURES: By signing below, Mortgagor agrees to the terms ~,~LI covenants contained in this Mortgage and in any attachments. Mortgagor also acknowledges receipt of a copy of th,, Mortgage on the date stated above on Page 1. [] Actual authority was granted to the parties signing below by rc:~¢lutior~ signed and dated Entity Name: BROKEN SKI POLE, LLC {$ignature)JON FORST, MEMBER/MANAGER (Date) I'~'~I""tL'~)NIGEL MILNE, ME~-B~NAGER (Date) (Signature)~AN MILNE, MEMBER/MANAGER (Date) I"'"~"m'etDAVE BUCHOLZ, MEMBER [] Refer to the Addendum which is attached and incorporated (~erein for additional Mortgagors, acknowledgments. (Date) signatures and ACKNOWLEDGMENT: STATE OF , COUNTY This instrument was acknowledged before me this (Individual) by day of SS. My commission expires: (Notary Public) This instrument was~/cknowledg~_before me this OF./, day of ~ .... MEMBER/MANAGER; ' or Entry ~.~.ow,.da .... , of BROKEN SKI POLE, LLC , a ~ ~t~ ~a~i~ Cr~ My commission expires: // (Title(s)) (Name of Bu~ness or Entity) o~ehalf of th~.~t~a/~s or entity. (Notary Public~ - 993, 2001 Bankers Systems, Inc., St. Cloud, MN Form AGCO-RESI-WY 'i/16 r:~O0 3 (page 8 of 8) 2.4. APPLICABLE LAW; SEVERABILITY; INTERPRETATION. This M~rl{t;~ge is governed by the laws of the jurisdiction in which Lender is located, except to the extent otherwise requir,~d hy ~he laws of the jurisdiction where the Property is located. This Mortgage is complete and fully integrated. ThJ~; Mot/gage may not be amended or modified by oral agreement. Any section or clause in this Mortgage, attachme~[.~, or any agreement related to the Secured Debt that conflicts with applicable law will not be effective, unless that I~v,, (;xt}ressly or impliedly permits the variations by written agreement. If any section or clause of this Mortgage cannot be u~dorced according to its terms, that section or clause will be .severed and will not affect the enforceability of the remai~du~ of tt~is Mortgage. Whenever used, the singular shall include the plural and the plural the singular. The captions ;~,,I headings of the sections of this Mortgage are for convenience only and are not to be used to interpret or define ti,; terms of this Mortgage. Time is of the essence in this Mortgage. 25. NOTICE. Unless otherwise required by law, any notice shall be .rjiw~ by delivering it or by mailing it by first class mail to the appropriate party's address on page 1 of this Mortgage, or ~o ~r~,/ other address designated in writing. Notice to one mortgagor will be deemed to be notice to all mortgagors. 26. WAIVERS. Except to the extent prohibited by law, Mortgagor '~,'~ves ~ny right regarding the marshalling of liens and assets and all homestead exemption rights relating to the Propert,/. 27. U.C.C. PROVISIONS. If checked, the following are applicable to, ht~[ do not limit, this Mortgage: Construction Loan. This Mortgage secures an obligation ~currcd for the construction of an improvement on the Property. [] Fixture Filing. Mortgagor grants to Lender a security intc~cst in all goods that Mortgagor owns now or in the future and that are or will become fixtures related to the P~ [] Crops; Timber; Minerals; Rents, Issues and Profits. Mort!j~cjor grants to Lender a security interest in all crops, timber and minerals located on the Property as well as ~tl ~ents, issues, and profits of them including, but not limited to, all Conservation Reserve Program (CRP) and P~;,~er~t in Kind (PIK) payments and similar governmental programs (all of which shall also be included in the term "P~ ~t~u~ ty"). [] Personal Property. Mortgagor grants to Lender a security ,~t~;rest in all personal property located on or connected with .the Property. This security interest includes all fa~ Ill(~£Juct$, inventory, equipment, accounts, documents, instruments, chattel paper, general intangibles, and all otJ~u~ it~r~s of personal property Mortgagor owns now or in the future and that are used or useful in the constructior~, ~wr~ership, operation, management, or maintenance of the Property. The term "personal property" specifically ,~×,:l~des that property described as "household goods" secured in connection with a "consumer" loan as th~.~ learns are defined in applicable federal regulations governing unfair and deceptive credit practices. [] Filing As Financing Statement. Mortgagor agrees and ,',:k~owledges that this Mortgage also suffices as a financing statement and as such, may be filed of record ,',.~ a fir~ancing statement for purposes of Article 9 of the Uniform Commercial Code. A carbon, photographic, ima0o or other reproduction of this Mortgage is sufficient as a financing statement. 28. OTHER TERMS. If checked, the following are applicable to this M~r tg~ge: [] Line of Credit. The Secured Debt ~ncludes a revolving linc ol credit provision. Although the Secured Debt may be reduced to a zero balance, this Mortgage will remain in efl~ct u~til released. [] Separate Assignment. The Mortgagor has executed or will ~.'xecute a separate assignment of leases and'rents. If the separate assignment of leases and rents is properly ex~c:uzed and recorded, th~n the separate assignment will supersede this Security Instrument's "Assignment of Leas~:.~ ~d F~ents" section. [] Additional Terms. ©1993, 2001 Bankers Systems, Inc., St. Cloud, MN Form AGCO-RESI-WY ~/~6 :i,,33 /page 7 of 8) SIGNATURES: By signing below, Mortgagor agrees to the terms ~M covenants contained in this Mortgage and in any attachments. MorTgagor also acknowledges receipt of a copy of th~.~ Mortgage on the date stated above on Page 1. [] Actual authority was granted to the parties signing below by r~.%¢~lution signed and dated Entity Name: BROKEN SKI POLE, LLC ts'~"a~.?re)NIGEL MILNE, M,Z.M~ER/rv~N~GER / /. (Date) (Signature)JON FORST, MEMBER/MANAGER (Date) (SignatureJ~AN MILNE, MEMBER/MANAGER {Date) I~"-t"a~re)DAVE BUCHOLZ, MEI~BER ) ! {Date) [] Refer to the Addendum which is attached and incorporat,¢d herein for additional Mortgagors, signatures and acknowledgments. ACKNOWLEDGMENT: STATE OF , COUNTY This instrument was acknowledged before me this by __day of SS. My commission expires: {Notary Public) STATE OF ~h, 'q O~I'TX \ \f~(~, , COUNTY {-9t: ~__~t ~ } ss. This instrumen~ ~a~ acknowle~g-~efore me this ~'~ day of by ou,, ...... , ,,I ........... , ............ , DAVE BUCHOLZ ~AGER; MEMBERj~ANAGfiR; ME;~B~ ....... ~...; MEMBER (Title(si) of BROKEN SKI POLE, LLC = a Wvom5 n~ 1.5 m5 tpd T.5 nt~5 ]-[.LM Com~ {Name of Business or Entity) a ~~~~_~ on behalf of the business or entity. My commission expires: SALLY L IVIARTIN ~Notary Public C~unty of ~ State of Lincoln ~ Wyoming My Commission Expires September 13. 2006 {Notary Pubh ) ~'~-'~M © 1993, 2001 Bankers Systems, Inc,, St. Cloud, MN Form AGCO-RESPWY 1,q ;J,2~;03 [page 8 of 8) EXHIBIT A A portion ofL~t $ ('NE1/4SW1/4) and the NW1/4SE1/4 of Section 4, T3gN, R119W, ofuhe 6~ ~ ' p.M. Lincoln County, Wyoming, being more pm'ticularly described as follows: BEOINNINO ar the B.L.M. type Monument found marking The U,S. Forest Service PE/LS 698, 1993 location for the CS 1/16 Comer of said Section 4; thence N89°1 l'02"W (recorded N89°54'07"W), along the Soud~ line ofsa/d Lot 5, 700.75 feet (record 700.58') ro the B.L.M. type Monument found marking the U.S. Forest Service PE/LS 698, 1993 location for the Survey Comer common m said Lot 5, Lot 6 trod thc Sm~e of Idaho; thence N0°46'1Y'E (record N0°3'44"E), along the West line of said Lot 5, 531.16 feet To an Iron Pipe set; thence 889°lY47"E 1050.56 feet to an Iron Pipe set at a point in ths Targhee National Forest Boundary Line; thence S 13°08'01"E (recor~l S12°19'34"E) along said National Forest Boundary, 153.90 feet to the B.L.M. type Monumem found marking the U.S. Forest Service PE/LS 698, 1993 location for bend in thc Survey line; thence 846'06'08"W, 543.86 feet to the Poim of Begi~ming.