Document:

The Securities in the form of the Secured Promissory Note of Golden West Brewing Company have not been registered under the Securities Act of 1933, as amended, or under any state securities laws.  Such securities cannot be sold, transferred, assigned or otherwise disposed, except in accordance with the Securities Act of 1933, as amended, and applicable state securities laws.

 

SECURED PROMISSORY NOTE

$50,000                                                
                                                                             September
9, 2005

          FOR VALUE RECEIVED, GOLDEN WEST BREWING
COMPANY, a California corporation, and its successors and assigns (the "Maker"), promises to pay to the order of
POWER CURVE, INC., a Wyoming corporation ("Holder") at P.O. Box
866, Thermopolis, Wyoming  82443, or at such other place as Holder may from time to time designate in writing, the principal sum of
Fifty Thousand Dollars ($50,000) in lawful money of in lawful money of the United States of America, together with interest on so such thereof as is from time to time outstanding at the rate hereinafter provided, and payable as hereinafter provided.

          Maker's obligations under the Note is secured by certain property of Maker, as set forth in that certain security agreement of even date herewith between Maker, as Debtor, and Holder, Lone Oak Vineyards, Inc., a California corporation, and Power Curve, Inc., a
Wyoming corporation, as tenants in common (the "Security Agreement").

          1.          Interest Rate.  The unpaid principal balance of this Note shall bear interest at the rate of nine percent (9.0%) per annum commencing on the date of the Note made to Maker by the Holder hereof and amortized over a five-year period.

          2.          Payment/Maturity Date.  Subject to the terms and provisions of the Security Agreement, the principal balance hereof and accrued and unpaid interest shall be due and payable in full on or before September
9, 2008.

          3.          Default Interest and Attorney Fees.  Upon declaration of a default hereunder, the balance of the principal remaining unpaid, interest accrued thereon, and all other costs, and fees shall bear interest at the rate of twelve percent (12%) per annum from the date or default, or the date of advance, as applicable.  In the event of default, the Maker and all other parties liable hereon agree to pay all costs of collection, including reasonable attorneys' fees.

          4.          Interest Calculation.  Daily interest shall be calculated on a 365-day year and the actual number of days in each month.

          5.          Prepayment.  Maker may prepay the unpaid principal balance of this Note in whole or in part at any time or from time to time without penalty or premium, together with interest accrued thereon to the date of such prepayment.  

          6.          Costs of Collection.  Maker agrees that if, and as often as, this Note is placed in the hands of an attorney for collection or to defend or enforce any of Holder's rights hereunder or under any instrument securing payment of this Note, Maker shall pay to Holder its reasonable attorneys' fees and all court costs and other expenses incurred in connection therewith, regardless of whether a lawsuit is ever commenced or whether, if commenced, the same proceeds to judgment or not.  Such costs and expenses shall include, without limitation, all costs, reasonable attorneys' fees, and expenses incurred by Holder in connection with any insolvency, bankruptcy, reorganization, foreclosure, deed in lieu of foreclosure or similar proceedings involving Maker or any endorser, surety, guarantor, or other person liable for this Note which in any way affect the exercise by Holder of its rights and remedies under this Note, or any other document or instrument securing, evidencing, or relating to the indebtedness evidenced by this Note.

          7.          Default.  At the option of Holder, the unpaid principal balance of this Note and all accrued interest thereon shall become immediately due, payable, and collectible, without notice or demand, upon the occurrence at any time of any of the following events, each of which shall be deemed to be an event of default hereunder:

                    a.          Maker's failure to make any payment of principal, interest, or other charges on or before the date on which such payment becomes due and payable under this Note or the Credit Agreement.

                    b.          Any breach or violation of any representation, warranty, agreement or covenant contained in this Note, or in any other document or instrument securing, evidencing, or relating to the indebtedness evidenced by this Note, including, without limitation, the Credit Agreement or the Security Agreement.

                    c.          The failure of Maker to generally pay its debts as they become due or if Maker shall file in any court pursuant to any statute, either of the United States or of any state, a petition in bankruptcy or insolvency, or for reorganization, or for the appointment of a receiver or trustee of all or a substantial portion of Maker' property, or if Maker make any assignment for or petitions for or enters into an arrangement for the benefit of creditors, or if a petition in bankruptcy is filed against Maker which is not discharged within sixty (60) days thereafter.

                    d.          Dissolution, liquidation or termination of Maker.

                    e.          Any event which constitutes an event of default under the Credit Agreement or Security Agreement.

          8.          Application of Payments.  Any payment made against the indebtedness evidenced by this Note shall be applied against the following items in the following order:  (1) costs of collection, including reasonable attorney's fees incurred or paid and all costs, expenses, default interest, late charges and other expenses incurred by Holder and reimbursable to Holder pursuant to this Note (as described herein); (2) default interest accrued to the date of said payment; (3) ordinary interest accrued to the date of said payment; and (4) finally, outstanding principal.

          9.          Assignment of Note.  This Note may not be assigned by Maker without the Holder's written consent.

          10.          Non-Waiver.  No delay or omission on the part of Holder in exercising any rights or remedy hereunder shall operate as a waiver of such right or remedy or of any other right or remedy under this Note.  A waiver on any one or more occasion shall not be construed as a bar to or waiver of any such right and/or remedy on any future occasion.

          11.          Maximum Interest.  In no event whatsoever shall the amount paid, or agreed to be paid, to Holder for the use, forbearance, or retention of the money to be loaned hereunder ("Interest") exceed the maximum amount permissible under applicable law.  If the performance or fulfillment of any provision hereof, or any agreement between Maker and Holder shall result in Interest exceeding the limit for Interest prescribed by law, then the amount of such Interest shall be reduced to such limit.  If, from any circumstance whatsoever, Holder should receive as Interest an amount which would exceed the highest lawful rate, the amount which would be excessive Interest shall be applied to the reduction of the principal balance owing hereunder (or, at the option of Holder, be paid over to Maker) and not to the payment of Interest.

          12.          Purpose of Loan.  Maker certifies that the loan evidenced by this Note is obtained for business or commercial purposes and that the proceeds thereof will not be used primarily for personal, family, household, or agricultural purposes.

          13.          Waiver of Presentment.  To the extent permitted by applicable law, Maker and the endorsers, sureties, guarantors and all persons who may become liable for all or any part of this obligation shall be jointly and severally liable for such obligation and hereby jointly and severally waive presentment and demand for payment, notice of dishonor, protest and notice of protest, and any and all lack of diligence or delays in collection or enforcement hereof.  Said parties consent to any modification or extension of time (whether one or more) of payment hereof, the release of all or any part of the security for the payment hereof, and the release of any party liable for payment of this obligation.  Any modification, extension, or release may be without notice to any such party and shall not discharge said party's liability hereunder.

          14.          Governing Law.  As an additional consideration for the extension of credit, Maker and each endorser, surety, guarantor, and any other person who may become liable for all or any part of this obligation understand and agree that the loan evidenced by this Note is made in the State of Maker's residence or domicile and the provisions hereof will be construed in accordance with the laws of such state, and such parties further agree that in the event of default this Note may be enforced in any court of competent jurisdiction in said state, and they do hereby submit to the jurisdiction of such court regardless of their residence or where this Note or any endorsement hereof may be executed.

          15.          Binding Effect.  The term "Maker" as used herein shall include the original Maker of this Note and any party who may subsequently become liable for the payment hereof as an assumer with the consent of the Holder, provided that Holder may, at its option, consider the original Maker of this Note alone as Maker unless Holder has consented in writing to the substitution of another party as Maker.  The term "Holder" as used herein shall mean Holder or, if this Note is transferred, the then Holder of this Note.

          16.          Relationship of Parties.  Nothing herein contained shall create or be deemed or construed to create a joint venture or partnership between Maker and Holder, Holder is acting hereunder as a lender only.

          17.          Liability of Maker.  Maker's liability under this Note shall be joint and several; and Holder shall have no duty or obligation to exhaust any remedies at law or in equity against one Maker as a condition to asserting Holder's remedies against the other Maker, or both Maker concurrently.

          18.          Severability.  Invalidation of any of the provisions of this Note or of any paragraph, sentence, clause, phrase, or word herein, or the application thereof in any given circumstance, shall not affect the validity of the remainder of this Note.

          19.          Amendment; Conflicts.  This Note may not be amended, modified, or changed, except only by an instrument in writing signed by both of the parties.    To the extent there is a conflict in the terms and provisions of this Note and the terms and provisions of the Credit Agreement, the terms and provisions of the Credit Agreement shall control and be binding.  

          20.          Time of the Essence.  Time is of the essence for the performance of each and every obligation of Maker hereunder.

          IN WITNESS WHEREOF, the undersigned has executed this Note this
9th day of September, 2005.

	 	
GOLDEN WEST BREWING COMPANY, 

a California corporation

	 	 
	 	 
	 	 
	 	
By:  /s/ Brian Power

	 	
     Brian Power, PresidentASSIGNMENT AND ASSUMPTION

        THIS ASSIGNMENT AND ASSUMPTION is effective as of the 31st day of August, 2005 by and between BUTTE CREEK BREWING COMPANY, LLC., a California limited liability company ("Assignor"), and GOLDEN WEST BREWING COMPANY, a California corporation ("Assignee") and GOLDEN WEST BREWING COMPANY, INC.,  a Delaware corporation ("Golden West").

RECITALS

        A.        Golden West formed and organized Assignee as a wholly-owned subsidiary of Golden West in order to acquire the assets, subject to certain liabilities, of Assignor.

        B.        Golden West, Assignor and Assignee entered into an Asset Purchase and Sale Agreement dated as of October 6, 2004 and subsequently amended the Asset Purchase and Sale Agreement on January 24, 2005 and July 31, 2005 (hereafter collectively referred to as the "Agreement").

        C.        The parties have satisfied all conditions necessary to the consummation of the transactions covered by the Agreement and desire to consummate same in accordance with the terms thereof.

        NOW, THEREFORE, in consideration of the payment to Assignor of an aggregate of $350,000, the assumption of certain liabilities described herein, and the issuance to Assignor of an aggregate of 200,000 shares of common stock of Golden West, the receipt and sufficiency whereof are hereby acknowledged, the parties agree as follows:

        1.        Assignor, for itself, its successors and assigns, hereby sells, assigns, transfers, conveys and delivers to Assignee all of the right, title and interest of Assignor in and to all of its assets and properties, of whatsoever kind or description, real and personal, tangible and intangible, related to Assignor's business and operations commonly known as Butte Creek Brewing Company and located at 945 West 2nd Street, Chico, California (the "Assets").

        2.        Assignor transfers and conveys the Assets to Assignee subject to the representations and warranties of Assignor contained in the Agreement, which representations and warranties Assignor confirms and certifies are true and correct as of the date hereof.

        3.        Assignee hereby accepts the foregoing assignment and transfer of the Assets and hereby agrees to assume and pay the specific obligations and liabilities of Assignor related to Assignor's operations and listed on Exhibit A hereto (the "Assumed Liabilities"), including, without limitation, the observance and performance of all obligations required of Assignor under any contract, lease or other executory agreement included within the Assets and accruing on or after the date hereof or otherwise attributable to the period commencing on said date and continuing thereafter so long as such commitments remain in full force and effect.          

        4.        Assignor shall be solely and exclusively liable for any obligations and liabilities of Assignor related to the Assets prior to the date hereof and not listed on Exhibit A hereto and expressly assumed by Assignee as an Assumed Liability and agrees to indemnify, defend and hold harmless Assignee and Golden West from any liability therefore, including attorneys fees. 

        5.        Assignee agrees to indemnify, defend and hold harmless Assignor, and its affiliates, agents, successors and assigns, from and against any and all claims, demands, actions, causes of action, suits, proceedings, damages, liabilities, costs and expenses of every nature whatsoever, including attorneys fees, which arise from or relate to the Assets and Assumed Liabilities on or after the date hereof.  

        6.        Assignor, for itself, its successors and assigns, hereby agrees to execute and deliver to Assignee any and all further documents of conveyance, agreements, assignments, transfers or other undertakings which Assignee may request and which may be necessary to effect and consummate the conveyances herewith contained and the agreements and undertakings more fully set forth herein.

        7.        This Agreement shall be binding upon the parties hereto, their successors and assigns.

        
IN WITNESS WHEREOF, the parties have signed the Agreement the date and year first above written.

	
ASSIGNOR:
	
BUTTE CREEK BREWING COMPANY, LLC., 

	 	
a California limited liability company

	 	 
	 	
By:/s/ Thomas Atmore

	 	
    Thomas Atmore, Managing Member

	 	 
	
ASSIGNEE:
	
GOLDEN WEST BREWING COMPANY 

	 	
a California corporation

	 	 
	 	
By:/s/ Brian Power

	 	
    Brian Power, President

	 	 
	 	
GOLDEN WEST BREWING COMPANY, INC., a Delaware corporation

	 	 
	 	
By:/s/ Brian Power

	 	
    Brian Power, President

Exhibit A 

Golden West Brewing Company hereby assumes all liabilities of Butte Creek Brewing Company, LLC as shown on its balance sheet as of August 31, 2005 except for "Management Fees Payable" and "Advances Payable."  Butte Creek shall remain liable for all Management Fees Payable and Advances Payable and shall indemnify, defend and hold harmless Golden West Brewing Company and Golden West Brewing Company, Inc. from any obligation or liability with respect thereto. The liabilities to be assumed will approximate $300,000.  A detailed schedule will be prepared by Butte Creek and approved by Golden West no later than September 30, 2005.

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