Document:

EXHIBIT 10.4

 

BTND LLC

 

SUBORDINATED PROMISSORY NOTE
ASSUMPTION OF STAN CORP MORTGAGES

 

April 28, 2007

 

$1,886,431.94 

Minneapolis, Minnesota

 

FOR VALUE RECEIVED, the undersigned BTND LLC, a Colorado limited liability company (the “Company”), hereby promises to pay to the order of STEN Corporation or its registered assigns (the “Holder”), the principal sum of One Million Eight Hundred Eighty Six Thousand Four Hundred Thirty One Dollars and 94/00 ($1,886,431.94) in lawful money of the United States, together with simple interest from the date hereof on the unpaid principal balance outstanding from time to time. All outstanding principal and accrued interest on this Note shall be due and payable in accordance with this Note.

 

1. Principal Balance; Interest.

 

1.1 The unpaid principal amount of and accrued but unpaid interest on this Note shall be paid in full no later than the Maturity Date (as defined in Section 1.6), unless repaid earlier pursuant to the provisions of Section 1.7. All interest will be compounded annually and computed on the basis of a 360-day year of twelve 30-day months and the actual number of days elapsed.

 

1.2 Interest shall accrue on the outstanding principal amount of this Note from the date hereof at the rate of six and one-quarter percent (6.25%) per annum.

 

1.3 Interest shall accrue from the date hereof and shall be paid currently on a monthly basis on the first day of each month beginning on May 1, 2007 (each date on which interest shall be so payable, a “Interest Payment Date”).

 

1.4 Principal payments, which shall be amortized over thirteen (13) years, shall be made on a monthly basis on the first day of each month beginning on June 1, 2007 (each date on which principal shall be so payable, a “Principal Payment Date”).

 

	 
	
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1.5 In the event that any Interest Payment Date or Principal Payment Date shall not be a business day, such date shall be deemed to be due on the next succeeding business day to occur after such date, and such extension of time will in such case be included the computation of the amount due.

 

1.6 The entire unpaid principal and interest under this Note shall be fully due and payable on June 1, 2020 (the “Maturity Date”).

 

1.7 Upon five (5) business days’ notice, the Company may, at its option, without premium or penalty, prepay the unpaid principal amount of the Note, at any time in whole or from time to time in part, together with interest accrued and unpaid thereon to the date of prepayment (a “Prepayment Date”). Any such prepayment shall be applied first to the payment of collection costs, if any, and then to accrued and unpaid interest, and then to repayment of principal. Upon any partial prepayment of the unpaid principal amount of this Note, the Holder shall make notation on this Note of the portion of the principal so prepaid.

 

2. Security. This Note is a general unsecured obligation of the Company. This Note, and all of the obligations of the Company hereunder, shall be secured Gary Copperud.

 

3. Subordination. By acceptance of this Note, the Holder agrees that the payment of the principal and the interest on this Note is hereby expressly subordinated and junior in right of payment to the prior payment in full of all existing and future Senior Indebtedness (as hereinafter defined). “Senior Indebtedness” shall mean the principal or interest now existing or hereafter arising or incurred for money borrowed by the Company from

 

4. Default.

 

4.1 Events of Default. An “Event of Default” or “Default” occurs if:

 

(1) the Company fails to pay accrued interest on this Note when the same becomes due and payable at maturity, or otherwise (whether or not such payment was prohibited by any provision of this Note or otherwise);

 

(2) the Company fails to pay the principal of this Note when the same becomes due and payable at maturity or otherwise (whether or not such payment was prohibited by any provision of this Note or otherwise);

  

	 
	
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(3) the Company is or becomes insolvent within the meaning of any Bankruptcy Law;

 

(4) the Company is in default under any obligation owed on account of Senior Indebtedness;

 

(5) the Company pursuant to or within the meaning of any Bankruptcy Law: (a) commences a voluntary case or proceeding; (b) consents to the institution or entry of an order for relief against it in an involuntary case or proceeding, or fails to contest in a timely and appropriate manner any such proceeding; (c) applies for or consents to the appointment of a Custodian of it or for all or substantially all of its property or assets; (d) makes a general assignment for the benefit of its creditors; (e) files an answer admitting the material allegations of a petition filed against it in any such proceeding; or (g) takes any action for the purpose of effecting any of the foregoing; or

 

(6) an involuntary proceeding is commenced or an involuntary petition is filed in a court of competent jurisdiction seeking: (a) relief against the Company in an involuntary case or proceeding under any Bankruptcy Law; (b) appoints a Custodian of the Company for all or substantially all of its properties or assets; or (c) orders the winding up or liquidation of the Company; provided, however, that in each case the order or decree remains unstayed and in effect for thirty (30) consecutive days.

 

The term “Bankruptcy Law” means Title II, U.S. Code or any similar federal or state law for the relief of debtors. The term “Custodian” means any receiver, trustee, assignee, liquidator, sequestrator, conservator or similar official under any Bankruptcy Law.

 

A Default under Sections 4.1(1) or 4.1(2) is not an Event of Default until the Holder notifies the Company of the Event of Default and the Company does not cure such Default within ten (10) days after receipt of the notice. The notice must specify the Event of Default, demand that it be remedied and state that the notice is a “Notice of Default.” When such a Default is cured, it ceases.

 

	 
	
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4.2 Except as otherwise set forth in and contemplated by this Note, if an Event of Default occurs and is continuing, the Holder may, by notice to the Company, declare all unpaid principal of and accrued interest to the date of acceleration on this Note immediately due and payable. Upon full payment of such principal amount and interest, all of the Company’s obligations under this Note shall terminate. The Holder by notice to the Company may rescind an acceleration and its consequences if (i) all existing Events of Default, other than the non-payment of the principal of the Notes which has become due solely by such declaration of acceleration, have been cured or waived, (ii) to the extent the payment of such interest is lawful, interest on overdue installments of interest and overdue principal which has become due otherwise than by such declaration of acceleration, has been paid, and (iii) the rescission would not conflict with any judgment or decree of a court of competent jurisdiction.

   

4.3 If an Event of Default occurs and is continuing, the Holder may, except as otherwise provided herein, pursue any available remedy by proceeding at law or in equity to collect the payment of principal of or interest on the Note or to enforce the performance of any provision of the Note or to enforce any other legal or equitable right it may have as a holder of this Note, including, without limitation, the commencement of any enforcement rights that may be available against the Company and/or one or more of the Guarantors.

 

4.4 A delay or omission by the Holder in exercising any right, power or remedy shall not constitute a waiver of or acquiescence in the Event of Default nor shall any single or partial exercise of any such right, power or remedy preclude any other or further exercise thereof or the exercise of any other right, power or remedy. No remedy is exclusive of any other remedy. All available remedies are cumulative.

 

4.5 The acceptance at any time by the Holder of any past due amounts, or partial payments, will not be deemed a waiver of the requirement to make prompt payment when due of any other amounts then or thereafter due and payable.

 

4.6 Except as otherwise expressly provided herein, the Company hereby waives presentment, demand for payment, notice of nonpayment, protest, notice of protest, notice of dishonor, and all other notices in connection herewith, as well as filing of suit (if permitted by law) and diligence in collecting this Note.

 

	 
	
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5. Collection Costs. In the event that the Company fails to timely pay any amount due under this Note or upon the occurrence of any other Event of Default, the Company will pay all of the Holder’s reasonable out-of-pocket costs, including without limitation, attorneys’ fees and costs, whether or not any suit or enforcement proceeding is commenced.

 

6. Replacement Note. Upon receipt of evidence reasonably satisfactory to the Company of the loss, theft, destruction or mutilation of this Note, the Company will make and deliver a new Note of like tenor in lieu of this Note.

 

7. Transferability. This Note is transferable only by surrender of the Note to the Company, duly endorsed or accompanied by a written instrument of transfer executed by the registered Holder. Upon surrender of this Note for transfer as provided above, the Company will issue a new Note to, and register such new Note in the name of, the transferee.

 

8. Amendment. Any amendment, supplement or modification of or to any provision of this Note, any waiver of any provision of this Note and any consent to any departure by the Company from the terms of any provision of this Note, shall be effective (i) only if it is made or given in writing and signed by the Company and the Holder, and (ii) only in the specific instance and for the specific purpose for which made or given.

 

9. Third Party Beneficiary. The holder(s) of any Senior Indebtedness is or shall be an express third party beneficiary of the subordination and related provisions of this Note.

 

10. Governing Law. This Note shall be construed in accordance with the substantive laws of the State of Minnesota without regard to the laws of conflicts of any jurisdiction.

 

11. Venue. AT THE OPTION OF THE HOLDER, THIS NOTE MAYBE ENFORCED IN ANY STATE OR FEDERAL COURT SITTING IN MINNEAPOLIS OR ST. PAUL, MINNESOTA, AND THE COMPANY CONSENTS TO THE JURISDICTION AND VENUE OF ANY SUCH COURT AND WAIVES ANY ARGUMENT THAT VENUE IN SUCH FORUMS IS NOT CONVENIENT. IN THE EVENT THE COMPANY COMMENCES ANY ACTION IN A JURISDICTION OTHER THAN MINNESOTA, THE COMPANY AT ITS OPTION IS ENTITLED TO HAVE THE CASE TRANSFERRED TO ONE OF THE JURISDICTIONS AND VENUES DESCRIBED ABOVE, OR IF SUCH TRANSFER CANNOT BE ACCOMPLISHED UNDER APPLICABLE LAW, TO HAVE SUCH CASE DISMISSED WITHOUT PREJUDICE.

 

	 
	
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12. Waiver. THE COMPANY WAIVES THE RIGHT TO A TRIAL BY JURY IN ANY ACTION BASED ON OR PERTAINING TO THIS NOTE.

 

13. Severability. If anyone or more of the provisions contained herein, or the application thereof in any circumstance, is held invalid, illegal or unenforceable in any respect for any reason, the validity, legality and enforceability of any remaining provisions hereof shall not be in any way impaired, unless the provisions held invalid, illegal or unenforceable shall substantially impair the benefits of the remaining provisions hereof.

 

14. Further Assurances. The Holder, by accepting this Note, agrees that it shall execute such documents as may be reasonably required or desirable to carry out or to perform the provisions of this Note, including without limitation executing all reasonable documents, instruments and certificates and performing such reasonable acts as may be necessary or desirable to carry out or perform the provisions of Section 3.

 

IN WITNESS WHEREOF, the Company has caused this Note to be executed on its behalf by its duly authorized officer on the day and year first above written.

 

	
BTND LLC

	 
	
By:

	
	 	Its:

 

Consent and Acknowledgement

 

The undersigned hereby consents to and acknowledges the obligations, undertakings and agreements of the Company and the rights of the Holder with respect thereto granted under this Note.

 

	
Gary Copperud

 

 

6EXHIBIT 10.5

 

SIC Loan No. A5020203

 

NOTE 

 

	
$1,060,000.00

	
April 15, 2005

  

FOR VALUE RECEIVED, the undersigned (“Borrower”), jointly and severally, promises to pay in lawful money of the United States, to the order of Standard Insurance Company, an Oregon corporation (“Lender”), at its office in Portland, Oregon, or such other place as Lender may designate, the principal amount of a loan (“Loan”) of One Million Sixty Thousand and No/100ths Dollars ($1,060,000.00), together with interest thereon, on the following agreements, terms and conditions.

 

1. Payments. Borrower shall make payments of principal and interest to Lender in One Hundred Eighty (180) equal monthly amounts of Nine Thousand Eighty-Nine and No/100ths Dollars ($9,089.00)payable on the first day of each month, commencing with the first day of July, 2005 (“First Payment Date”), together with such other sums as may become due hereunder or under any instrument securing this Note, until the entire indebtedness is fully paid, except that any remaining indebtedness if not sooner paid shall be finally due and payable on the first day of June, 2020, which is the maturity date of this Note (“Maturity Date”). Every payment received with respect hereto shall be applied, in any order that may be determined by Lender in its sole discretion, to sums under this Note, including, without limitation: (a) late charges; (b) expenses paid or funds advanced by Lender with interest thereon at the Default Rate when applicable (as hereinafter defined); (c) any prepayment fees due with respect to any payment and any other fees which may remain unpaid; (d) accrued interest on the principal balance from time to time remaining unpaid; and (e) subject to the prepayment provisions herein, the principal balance hereunder.

 

2. Interest. The interest included in the aforesaid payments, unless increased as otherwise provided in this Note, shall be calculated at the rate of Six and One-Quarter (6.250%) percent per annum (“Note Rate”) upon the unpaid balance of principal of this Note. Borrower, jointly and severally, also promises to pay interest at the Note Rate from the date of disbursement of the Loan proceeds evidenced by this Note (“Disbursement Date”) to the date from which interest is included in the first payment previously described.

 

3. Prepayment Restrictions; Fees. Borrower shall have the right to prepay, in full but not in part, the obligation evidenced by this Note upon giving Lender (i) not less than thirty (30) days’ prior written notice of (a) Borrower’s intention to so prepay this Note, and (b) the date upon which such prepayment will be received by Lender (“Prepayment Date”), and (ii) payment to Lender of the Prepayment Fee (as hereinafter defined), if any, then due to Lender as hereinafter provided.

 

	 
	
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(a)

	
As used herein, the term “Prepayment Fee” shall mean an amount which is the greater of

	 	
 

	 
	 	
(i)

	
one percent (1%) of the outstanding principal balance of this Note at the time of prepayment or

	 	
 

	 
	 	
(ii)

	
the sum of

	 	
 

	 
	 	
(A)

	
the Present Value (as hereinafter defined) of the scheduled monthly payments due under this Note from the Prepayment Date to the Maturity Date and

	 	
 

	 
	 	
(B)

	
the Present Value of the amount of principal and interest due under this Note on the Maturity Date (assuming all scheduled monthly payments due prior to the Maturity Date were made when due), minus

	 	
 

	 
	 	
(C)

	
the outstanding principal balance of this Note as of the Prepayment Date.

  

	 	

	
The “Present Values” described in (A) and (B) shall be computed on a monthly basis as of the Prepayment Date discounted at a rate that is equal to the yield-to-maturity of the U.S. Treasury Note or Bond closest in maturity to the Maturity Date of this Note as reported in the Wall Street Journal (or, if the Wall Street Journal is no longer published, as reported in such other daily financial publication of national circulation which shall be designated by Lender) on the fifth (5th) business day preceding the Prepayment Date. Borrower shall be obligated to prepay this Note on the Prepayment Date set forth in the written notice to Lender required hereinabove, after such notice has been delivered to Lender.

  

	 	
(b)

	
Notwithstanding the foregoing or any other provision herein to the contrary, if Lender elects to apply insurance proceeds, condemnation awards, or any escrowed amounts, if applicable, to the reduction of the outstanding principal balance of this Note in the manner provided in the Mortgage, no Prepayment Fee shall be due or payable as a result of such application and the monthly installments due and payable hereunder shall be reduced accordingly.

	 	
 

	 
	 	
(c)

	
In the event the Maturity Date is accelerated by Lender at any time due to a default by Borrower in the payment of principal and/or interest due under this Note or in the performance of the terms, covenants or conditions contained in this Note, the Mortgage or any of the other Loan Documents (as hereinafter defined), then a tender of payment in an amount necessary to satisfy the entire outstanding principal balance of this Note together with all accrued unpaid interest hereon made by Borrower, or by anyone on behalf of Borrower, at any time prior to, at, or as a result of, a foreclosure sale or sale pursuant to power of sale, shall constitute a voluntary prepayment hereunder prior to the contracted Maturity Date of this Note thus requiring the payment to Lender of a Prepayment Fee equal to the applicable Prepayment Fee as set forth in paragraph (a) above; provided, however, that in the event such Prepayment Fee is construed to be interest under the laws of the State of Minnesota in any circumstance, such payment shall not be required to the extent that the amount thereof, together with other interest payable hereunder, exceeds the maximum rate of interest that may be lawfully charged under applicable law.

   

	 
	
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(d)

	
Notwithstanding anything contained herein to the contrary, during the ninety (90) day period immediately preceding the Maturity Date of this Note, the entire outstanding principal balance and all accrued unpaid interest on this Note may be prepaid in whole, but not in part, at par, without incurring a Prepayment Fee.

  

4. Waiver. To the extent permitted by law, each and every Borrower, surety, guarantor, endorser or signator to this Note and any other party now or hereafter liable for the payment of this Note, in whatever capacity, whether in whole or in part hereby (a) waives notice of intent to demand, presentment for payment, notice of demand, demand, notice of nonpayment, protest, notice of protest, notice of dishonor, notice of intent to accelerate, notice of acceleration, and all other notices, filing of suit, and diligence in collecting this Note and/or enforcing any of the security herefor; (b) agrees that Lender shall not be required first to institute suit or exhaust its remedies against Borrower or others liable or to become liable hereon or against the Property (as hereinafter defined), it being understood that Lender may exercise its rights hereunder and pursue its remedies in any order and at any time it desires, and may do so, without notice to or consent of any such person, and without in any way diminishing the obligations of any such person; (c) consents to Lender dealing with any such person with reference to this Note by way of forbearance, extension, modification, compromise or otherwise; (d) consents and agrees to any and all extensions, releases, renewals, partial payments, surrenders, exchanges, substitutions of security herefor, compromises, discharges or modifications and any other indulgence with respect to any of any right or obligation secured by or provided by the Mortgage securing this Note (“Mortgage”) or any other instrument securing this Note, before or after the maturity of this Note, without notice thereof to any of them; and (e) consents and agrees that Lender may take any other action which Lender may deem reasonably appropriate to protect its security interest in the property securing this Note (“Property”). Any such action(s) taken under the preceding sentence may be taken against one, all, or some of such persons, and Lender may take any such action against one differently than another of such persons, in Lender’s sole discretion.

 

5. Default; Default Rate. Time is material and of the essence hereof with respect to the payment of any sums of any nature by and the performance of all duties or obligations of the Borrower. Each of the following shall be an Event of Default under this Note: (a) failure to make any payment of principal and/or interest or any other payment required by the provisions of this Note or of any instrument securing this Note on the date such payment or payments are due; (b) failure to perform any other provision of this Note or of any instrument securing this Note; or (c) falsity in any material respect of the warranties in the Mortgage or of any representation, warranty or information furnished by Borrower or its agents to Lender in connection with the loan evidenced by this Note (“Loan”). Upon the occurrence of any Event of Default, any sum not paid as provided in this Note or in any instrument securing this Note, shall, at the option of Lender, without notice, bear interest from such due date at a rate of interest (“Default Rate”) equal to four (4) percentage points per annum greater than the Note Rate, or the maximum rate of interest permitted by law, whichever is the lesser, and, at the option of Lender, the unpaid balance of principal, accrued interest, plus any other sums due under this Note, or under any instrument securing this Note shall at once become due and payable, without notice except as described in Paragraph 12, and shall bear interest at the Default Rate. If an Event of Default occurs during a period of time in which prepayment is permitted only on payment of a prepayment fee, such fee shall be computed as if the sum declared due on default were a prepayment and shall be added to the sums due and payable hereunder.

 

	 
	
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6. Late Charges. If any payment is not received by Lender (or by the correspondent if a correspondent has been designated by Lender to receive payments) within five (5) calendar days after its due date, Lender, at its option, may assess a late charge equal to five cents for each $1.00 of each overdue payment or the maximum late charge permitted by the laws of the state in which the Property is located, whichever is less. Such late charge shall be due and payable on demand, and Lender, at its option, may (a) refuse to accept any late payment or any subsequent payment unless accompanied by such late charge, (b) add such late charge to the principal balance of this Note or (c) treat the failure to pay such late charge as demanded as an Event of Default hereunder. If such late charge is added to the principal balance of this Note, it shall bear interest at the Default Rate. The late charge is compensation for damages suffered by Lender and does not constitute interest.

 

7. Acknowledgments Regarding Default Rate, Late Charges and Prepayment Fees.

 

	 	
(a)

	
Borrower acknowledges and agrees that (i) a default in making the payments herein agreed to be paid when due will result in the Lender incurring additional expense in servicing the Loan, loss to Lender of the use of the money due, and frustration to Lender in meeting its other commitments, (ii) if for any reason it fails to pay any amounts due hereunder, Lender shall be entitled to damages for the detriment caused thereby, but that it is extremely difficult and impractical to ascertain the extent of such damages, and (iii) the Default Rate and the late charge described in this Note are a reasonable estimate of such damages.

	 	
 

	 
	 	
(b)

	
Borrower acknowledges and agrees that (i) prepayment prior to the maturity date may result in loss to Lender, (ii) the amount of the loss will depend on the interest rates at the time of prepayment, the amount of principal prepaid and the length of time remaining between the prepayment date and the scheduled maturity date, (iii) prepayment is most likely to occur when interest rates have dropped below the Note Rate, and (iv) because it is extremely difficult and impractical to ascertain now the amount of loss Lender may suffer in the event of prepayment, (A) Lender shall be entitled to damages for the loss caused by prepayment and (B) the prepayment fee described in this Note is a reasonable measure of such damages. Borrower agrees that the prepayment fee described in this Note shall be imposed, to the extent permitted by law, whether the prepayment is voluntary, involuntary or by operation of law, in connection with an Event of Default, or required by Lender in connection with a transfer or contract to transfer the Property, provided that no prepayment fee shall be added to sums prepaid with casualty insurance proceeds or condemnation awards.

  

	 
	
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(c)

	
Borrower expressly (i) waives any right to prepay the Loan without payment of the prepayment fee described above in connection with a transfer or contract to transfer the Property by Borrower, or a successor in interest of the undersigned, and (ii) agrees to pay such prepayment fee as provided above in connection with such a transfer or contract to transfer.

	 	
 

	 
	 	
(d)

	
Borrower represents that it is a knowledgeable real estate investor and fully understands the effect of the fees, charges, waivers and agreements contained above. Borrower acknowledges and agrees that the making of the Loan by Lender at the interest rate and with the other terms described herein is sufficient consideration for such fees, charges, waiver and agreement, and that Lender would not make this Loan on these terms without such fees, charges, waiver and agreement.

  

8. Expenses and Attorney Fees. If Lender refers this Note to an attorney for collection or seeks legal advice following a default alleged in good faith under this Note; if Lender is the prevailing party in any litigation instituted in connection with this Note; or if Lender or any other person initiates any judicial or nonjudicial action, suit or proceeding, including but not limited to a foreclosure sale, in connection with this Note or the security therefor, and an attorney is employed by Lender to (a) appear in any such action, suit or proceeding, (b) reclaim, seek relief from a judicial or statutory stay, sequester, protect, preserve or enforce Lender’s interest in this Note, the Mortgage, or any other security for this Note (including but not limited to proceedings at appellate levels, under federal bankruptcy law, in eminent domain, under probate proceedings, or in connection with any state or federal tax lien), or (c) assist Lender in any foreclosure sale, then, in any such event, Borrower shall pay attorney’s fees and costs and expenses incurred by Lender and/or its attorney in connection with the above-mentioned events and any appeals related to such events, including but not limited to costs incurred in searching records, the cost of title reports, the cost of appraisals, and the cost of surveyors’ reports. If not paid within ten days after such fees, costs and expenses become due and written demand for payment is made upon Borrower, such amount may, at Lender’s option, be added to the principal of the Note and shall bear interest at the Default Rate.

 

9. No Usury. In no event shall any payment of interest or any other sum payable hereunder both (a) violate the usury laws of the state in which the Property is located and (b) allow Borrower to bring a claim for usury or raise usury as a defense in any action on this Note. If it is established that both (a) and (b) have occurred, and any payment exceeding lawful limits has been received, Lender shall refund such excess or, at its option, credit the excess amount to principal, but such payments shall not affect the obligation to make periodic payments required herein.

 

10. Security. The indebtedness evidenced by this Note is secured by the Mortgage of even date and may be secured by other security instruments.

 

	 
	
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11. Due on Sale or Encumbrance. As provided in the Mortgage securing this Note, and subject to any exceptions provided therein, transfers or encumbrances of the Property, or of ownership interests in Borrower, cause all sums evidenced by this Note and/or secured by the Mortgage or by any other Loan Document to become immediately due and payable. By signing this Note, Borrower acknowledges that Borrower has received and reviewed a copy of the Mortgage and is familiar with the provisions restricting the transfer of the Property and the ownership interests therein.

 

12. Notice and Opportunity to Cure. Notwithstanding any other provision of this Note, Lender shall not accelerate the sums evidenced hereby because of a nonmonetary default (defined below) by Borrower unless Borrower fails to cure the default within fifteen (15) days of the earlier of the date on which Lender mails or delivers written notice of the default to Borrower. For purposes of this Note, the term “nonmonetary default” means a failure by Borrower or any other person or entity to perform any obligation contained in this Note or any other document, or instrument evidencing or securing the Loan (collectively, “Loan Documents”), other than the obligation to make payments provided for in this Note or any other Loan Document. If a nonmonetary default is capable of being cured and the cure cannot reasonably be completed within the fifteen (15) day cure period, the cure period shall be extended up to sixty (60) days so long as Borrower has commenced action to cure within the fifteen (15) day cure period, and in Lender’s opinion, Borrower is proceeding to cure the default with due diligence. No notice of default and no opportunity to cure shall be required if during any 12-month period Lender has already sent a notice to Borrower concerning default in the performance of the same obligation. None of the foregoing shall be construed to obligate Lender to forebear in any other manner from exercising its remedies and Lender may pursue any other rights or remedies which Lender may have because of a default.

 

13. Commercial Purpose. The obligation evidenced by this Note is exclusively for commercial or business purposes.

 

14. Notice.Except as otherwise provided in this Note, all notices and consents required or permitted under this Note shall be in writing and may be telecopied, cabled, delivered by hand, or mailed by first class registered or certified mail, return receipt requested, postage prepaid, and addressed as follows:

 

	 
	
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If to Borrower:

		
If to Lender:

	
 

	
 

	
 

	
BTAC Properties, Inc.

	
 

	
Standard Insurance Company

	
13828 Lincoln Street NE

	
 

	
Attn: Mortgage Loan Servicing

	
Ham Lake, MN 55304

	
 

	
 

	
19225 NW Tanasbourne Drive, T3A

	
 

	
 

	
Hillsboro, Oregon 97124

	
 

	
 

  

Changes in the respective addresses to which such notices may be directed may be made from time to time by either party by notice to the other parties given at least ten (10) days before such change of address is to become effective. Notices and consents given by mail in accordance with this paragraph shall be deemed to have been given three (3) days after the date of dispatch; notices and consents given by any other means shall be deemed to have been given when received.

 

15. Governing Law. The law of the state where the Property is located shall govern the validity, interpretation, construction and performance of this Note.

 

16. Successors and Assigns. Whenever used herein, the words “undersigned”, “Borrower” and “Lender” shall be deemed to include their respective heirs, executors, administrators, personal representatives, successors and assigns.

 

NOTICE TO THE BORROWER

 

DO NOT SIGN THIS NOTE BEFORE YOU READ IT. THIS NOTE PROVIDES FOR THE PAYMENT OF A FEE IF THE NOTE IS REPAID PRIOR TO THE DATE PROVIDED FOR REPAYMENT IN THIS NOTE AND OTHER CHARGES IF PAYMENTS ARE LATE. IF YOU HAVE ANY QUESTIONS ABOUT THIS NOTE, YOU SHOULD CONSULT YOUR ATTORNEY.

 

 

	 
	
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	BTAC Properties, Inc.,	 	 	 	 
	a Minnesota corporation				
		 				
	By:	 /s/ Gary Copperud	 	By:	/s/ Gary Copperud	 
	 	Gary Copperud, President	 	 	Gary Copperud, Individually	 
	 		 	 		 
	By: 	/s/ Kenneth W. Brimmer		By:	/s/ Kenneth W. Brimmer	
	 	Kenneth W Brimmer, Chief Executive Officer			Kenneth W. Brimmer, Individually	

 

 

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