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HomeMy WebLinkAboutLakeview Golf Course Lease Agreement 05-31-0690 ADR COUNTY RECORDER J. DAVID NAVARRO AMOUNT .00 ,a� BOISE (PAHO 07106/06 02:03 PM �Z DEPUTY Patti Thompson R ECOR DEO 0 F City of Meridian Publ'ic VVarks 106108232 AGREEMENT THIS AGREEMENT is made as of the. � / e_.� ay of May, 2006, by and between the City of Meridian, Idaho, a1PLunicipal corporafiion (hereinafter referred to as °Giy�j; R.R. Davis Propert"es, Inc., an Idaho corporation, and La�Ceview Meridian Investors, LLC, an Idaho limitecE Liability company thereinafter coll�ctiveiy referred to as "Lessee"); and Idaho Independent Bark, a banking corporation organized and existing under the laws of the State of Idaho thereinafter referred to as "Bank0 "). RECITALS: ' A. Cj',ty and Lessee pre viously entered into an AMENDED LEASE AGREEMENT FOR THE PROVISION OF GOLF COURSE OPERAI IONS AT CITY OF MERIDIAN'S MUNICIPAL GOLF COURSE dated May 17, 20D5 (hereinafter referred to as the "Lease"). B. Lessee has requested a loan and other financ'llal accommodations from Bank to which the Bank is w"11'ng to provide io Lessee upon certain conditions, which conditions include the Lessee's grant of a security interest in Lessee's leasehold infierest 1*n the Lease by the executdhion of a Leasehold Deed of Trust in the form as affached hereto as Exhf*b'lt "A" whi"ch is incorporated by this reference (hereinafter "Deed of Trust"). C. Lessee intends to use the funds received from Bank's loan to pay for improvements upon the real property which is subject to the Lease. . D. Section 9, Paragraph F, of the Lease prov'10des in part that "Lessee shall not, without the prior written consent of the City assign, hypothecate, or mortgage this Agreement, or sublease or sublicense any portion of the premises, which consent shall not be unreasonably w'l'thheld 17 dF - 'E. City acknowledges that it will benefit from the improvements constructed or to be constructed upon the City's teat P ro P erty subject to the Lease as a res u I t of Banfc's loan to Lessee. NOW THEREFORE, In consideration of the covenants and conditions set forth �herein, the parties agree as follows: 1. Inc ooration of Recitals. The parties agree •that the foregoing Recitals are contractual and binding and are incorporated herein as if set forth in fu!!, . .. AGREEMENT Page 1 of 8• 2. Consent to Lessee"s Grant of Securi City hereby agrees and consents to Lessee's grant nf a :Security interest in Lessees'leasehold interest in the Lease to Bank by way of Lessee's execution of the Deed of Trust as secu ty for BanWs loan to Lessee. 3. Citvt o Provide Not"ce of Modlfication t3 Lease. During the enure termof the Deed of Trust:, City agrees that no modification of the Lease shall occur without City first providing Bank, in wdting, at least nine fy (9 a) days prior to the effecfive date of such Mod'ipfication, of Guy`s in#end to modify the lease. 4. City -to Provide Notice of Lessee's Default. In the event of any default bY Lessee under the terms of the Lease, City agrees to not'l'fy Bank of such default in writing at lease thirty (3a) days prior to City taking any action to enforce any of C'J'ty's rights under -the Lease. oaring such above-descr'bed thirty -day notice peri0 od, Bank shall have the option to cure the default or to take such other action as may be necessary to protect the Bank's security il'nterest'l'n the lease result*ing from the Deed :)f Truist or any other agreement between Bank and Lessee. 5. Purchase Option to City in Event of Foreclosure, In the event Bank shall foreclose Lessee's interest in the Lease pursuant to the terms of the Deed of Trust, Bank agrees that City shall have the exclusive first right to purchase Bank's interest in the Lease ('including all other collates! pledged by Lessee as security for Bank's loan) by tendering to Bank an amount equal tc) the foto[ amount then owing to Bank by Lessee, together with all costs, expenses, aftorney's flees, and other fees of the dh Bank. In the event City shall exercise its option as provided herein, the City shall deliver the option price in cash or I Ired funds io Bank no later than 3:OQ p.m., Mountain Standard time, of least one (1) usiness day prior to the date of any scheduled foreclosure sale. In the event an shall commence foreclosure under the Deed of Trust, the,Bank shall provide City with written no ice the rec osure and the date thereof,, City may dile a request for a copy of a notice of default or notice of safe, pursuant to Idaho Code § 45-'f 591, and tie Bank shall provide City with th e necessary information cpnc�rning the recording o€ the Deed of Trust to enable City to file such a request. in the event of a foreclosure y Bank, an. s a also cause City to receive notice in the manner provided for in Idaho Code § 45-1 505 at the address herein provided even i*n the event City shall fail to record a request for notice. 6. Lessee's Use of Funds Received #rom Bank. Lessee represents to City that funds % r received from any Loan from Bank which i s secured by the Deed of Trust will be used exclusively to pay for the construction, renovation, repair or replacement of improvements upon the real properly which is subject to the Lease. 7. General Provisions. AGREEMENT Page 2 of 8 7.1 L*ifi anion Between the Parties. In the event of any litigation between the P arties conMingCEthis Agreement, except fior an agreed declaratory W udgment action sought to clarify the responsiboility and/or authodty of the parties hereunder, the unsuccessful party in such I'ta gath on shall 'ally reimburse the prevailing party for all reasonable costs and expenses.9 , including reasonable attorney's fees, �ncurreci in such litigation. 4 .2 Governing Law. This Agreement shall be governedby and construed in 7' accordance with the laws of the Slate of Idaho. T.3 T'Ifles and Headings. Titles and headings to articles sections, or paragraphs of this Agreement are inserted for convenience of reference and are not. intended to affect the interpretation or construcfon of this Agreement. 7.4 Notices,, Any notice under this Agreement shall be in wnOting.and shall be treated as duly delivered if the same J*s personably delivered to the other party or deposited in the Unified States Mail, certified, return receipt requested, postage, prepa mid. and properly addressed as follows: CITY: City of Meridian Attn: City Clerk 33 E. Idaho Meridian, Idaho 83642 LESSEE: Lakeview Meridian Investors, LLC R.R. Davis Properties, Inc. 4200 W. Talamore - Meridian, Idaho 83642 BANK: Idaho Independent Bank 113 E. Idaho Meridian, Idaho 83B42 7,.5 Authority of the Parties. Each party,to this Agreement represents and - ,warrants that the execution, delivery, and performance of this Agreement has 'been duly authorized by all necessary action of such party and ias a valid and binding obligation upon the persons or entity signing this Agreement. 7.6 No Assignment. No party may assign this agreement or any interest therein. ,h. 7.7 'Re resentat'ion. This Agreement was drafted by the attomey for Bank as matter of convenience only and shall not be construed for or against any party an that account. 7,.8 Entire Agreement. This Agreement constitutes tine entire agreement among fhe paries to it and supersedes any P riunderstanding or a9orreement. AGREEMENT Page 3 of 8 7,.9 Execution. in Counteroarts.. This Agreement may be executed in several counterparts, each of which shall be deemed ars DrIginal and all of wJiic� shall constwitute the same instrunient. 7.10 Successors and Ass]* Q ns. This Agreement shall inure to the benE)fit of and shall be binding upon the parties hereto and their respective successors and, if permitted, assigns. 7.11 Recordation of Agreement,, City or Bank shall have fhe right to record this Agreement or a memorandu thereof, provided they provide a copy of such recording to the remaining parties,,0 IN WITNESS WHEREOF, the parties have execuied thtseementAgron the dates set forth,below. CITY: Attest: WILLIAM G. BER LESSEE: i 1 t AGREEMENT T i J CITY OF MERIDIAN t3Y6 9 MAI MMY deWE t oflt 7 Lee 4;4t dEFIL JR, C lerk %%% % Irk R.R. DAVIS PROPERTIES, INC,, % BY: tichard R. Davis, President 0 Dated:Owe per_ 'Page4of8 U F iBANK4h r h h ■ LAKEVIEW MERIDIAN INVESTORS, SLG By: OARS LANEY, LLG, a Member By: LANEYLAND L.P., a Member BY= ve La eraJ Panner t D � li, `Richard R. Davis, Pres*ldent Dated: IDAHO INDEPENDENT BANK ober GERALD W. MAnISON Dated: STATE QF IDAHO) )SS. County of Ada ) On the day of May, 20D6, befiare me, #tie u�d�rsigned, a Notaly Public ire and for said State, personally appeared Tammy DeWeerd and W'ill'ia G. Berg, Jr., . known or identified tio me to be the Mayor and Clerk., respectively, of the City of Meridian, who execut..ed the within and foregoing ins#rument on behalf of ,said City, and acknowledged to me thltuC.-h Ciiy eXecuted the same. i T Y r T ■ rAGREEMENT 1 R 1 i f r J L f iPage 5 off; r r 7 T T F T IN WITNESS WHEREOF, I have hereunto affixed my official seal the day and year first above written. Notary Public for Idaho Residing at ,Idaho db My Commission Expires: STATE OF IDAHO ) )SS. County of Ada j 7 On the 319��daof Ma2006bfthe undersinedNtP M"""PFFIlp� y y 9 1 Ublic in and for said State, personably appeared Richard R. Davis, known or identifed to me to be the President of R.R. Davis Properties, Inc., the person who executed the wifhin and foregoing instntment on behalf of said corporation, and acknowledged to me that such corporation -executed the same. IN WITNESS WHEREOF,, I have hereunto ed my official seal the day and year first above written. V� dI Z41 N a ubl*lc for Idaro MO L Residing a# •9rf ,Idaho My Commission Expires: rpm*dilp STATE QF IDAHO) °�a,0� ss. County of Ada On the day of May, 2006, before me, the undersigned, a Na#ary Pubfic Ery and for said State, personalty appeared T. Erhk Oaas, known or identl'fled to me to be the Manager of Baas Laney, LLC, the person who executed the within and foregoing . - instrument on behalf of said Iimi#ed liability company, and acknowledged to me that . such limited (iabilify company executed -the same as a Member of Lakeview Meridian Investors, LLC.. 1N WITNESS WHEREOF, I have hero(tto a i ed my official seal the day and year irs a ove written. 1, 4 KIMBERLY CLARKS Notary Public State of Idaho III AGREEMENT NotaryPublic f Idaho Ring esidat � My Com ission Expires: 9 Idaho -Pa9 e 6 of 8 STATE OF IDAHO ) )SS. County of Ada ) On the'3/�ay of May, 204G, before me, the undersigned, a Notary Public in and for said State, personally appeared Steven Laney, known or identified to me to be the General Partner of Laneyland, L.P., the person who eYecuted the within and foregoing instrument on behalf of said limited partnership,, and acknowiedgec! to me that such limited partnership executed the same as a Member of Lakeview Meridian Investors, LLC. IN WITNESS WHEREOF, f have hereunto a d my official seal the day and year first above wribfte n. MMMI N Not ry bijac for Idaho Residing at iM f'jt (,0 t , Idaho My Commission Expires: v� = � 9%-t( 41 STATE OF IDAH0O County of Ada 4n the 3 ! day of May, 20Q6, before me, the undersigned, a Notary Public in and for salad State, personally appeared Richard R. Davis, known or'I'dentified to me to be the President of R.R. Davis Properties, Inc., the person who executed the within and foregoing instrument on behalf of said corporation, and acknowledged to me that such corporation executed the same as a Member of Lakeview Meridian Investors, LLC. IN WITNESS WHEREOF, ! have hereunto affixed my official seal the day and. year first above written. Rwe �`� No ry PuV11C for lda o Residing at -Pllot 6'4 1� i •4t --C , Idaho My Commission Expires : �- /4'- t/ .STATE OF lDAHOs��Q ss. County of Ada } s On the 3 j day of May, 200G, before me, the undersigned, a Nota ublic in . and for said State, personally appeared Gerry W. Mattison, known or identified to me to be the Vice President of Idaho, 1-ndepen'd e nt Bank, the person who executed the within AGREEMENT 0Page 7of8 of and foregoing ir�sinamer�t on behalf of said corporation, and acknowledged to me that such corporation executed the same. IN WITNESS WHEREOF, I have hereunto affixed my official seal the day and year flirst above writte40 �,:...,, do • '; �'� �';�►� Notary Pu b1j'c for Idaho �1 1 AN Residing at r� G � _ ,Idaho •, ,,' � G'��L� My Commission Expires: ic Y 4. AGREEMENT 'Page. 8 of 8 RECORDATION REQUESTED BY: raaHo INDEPENDENT BANK MERIDIAN OFFICE 1'i3 EAST IDAHO AVENUE ' MESIDIANe Ib 8342 WHEN RECORDED MAIL TO: IDAHO INDEPENDENT BANK MERIDIAN OFFICE 113 EAST IDAHO AVENUE MERIDIAN., ID 83642 41 SEND TAX NOTICES TO,, LAKEVIEW MERIDIAN INVESTORS, LLC R,R o D AVI S PROPE RTJ ES e. IN C, 420 0 W, TALAM OR E B LVD, MERIDIAN., ID 83642 ----------- SPACE ABOVE THIS LINE IS FOR RECORDER'S USE ONLY L&kSEHOLD DEED OF TRUST MAXIMUM LIEN. The lien of this Decd of Trust shall not exceed at any one time $649,,759.84, THIS DEED OF TRUST is dated May 17, 2006, among LAKEVIEW MERIDIAN INVESTORS, LLC AND R.R. DAVIS PROPERTIES., INC., whose address is 420Q W. TALAMORE BLVD.,, MERIDIAN., [D 83642 {"Grantor"); IDAHO INDEPENDENT BANK, whose address is MERIDIAN OFFICE, 173 EAST IDAHO AVENUE., MERIDIAN,, Ip 83642 (referred to below sometimes as "Lender" and sometimes as "Beneficiary"); and PIONEER TITLE COMPANY OF ADA COUNTY, whose address is 8751 W. RIFLEMAN AVENUE, BOISE, la 837Q4 (referred to below as "Trustee"). CONVEYANCE A D GRANT, For valuab to consideration,, Grantor does ha red 'Irrevo cad x ale, to Trustee for the benefit of Lender iss Beneficiary, a I l of Grantor's right, title, and interest in, to and under the Lease described below of ' the following described real proper , together with a I l existing or subsequently erected or affixed buildings, 'improvements y all 0 casements, rights and prn n1I rights i ���(includingIii a r� �� �rr�ga�fon rIg�ts) and all other rights, royalties, a r o fits rel ati to a read ' er including 'n the f e eI I i o n any r� Grantor if fr loclated simple trtl a to e land, subject to the Lease, and all minerals, 1I ageothermal and z" 'lar matters,. ADA County, State of Idaho: See EXHIBIT "A", which is attached t4 the Deed of Trust and made a part of this Deed of Trust as 1t fully set forth herein. THIS DEED OF TRUST INCLUDES ALL OF THE LESSEE'S INTEREST IN THAT PROPERTY DESCRIBED ABOVE UNDER THE LEASE AGREEMENT ORIGINALLY DATED MAY 17, 20p5 BETWEEN THE CITY OF MERIDIAN AS LESSOR AND LAKEVIEW MERIDIAN !NVESTORS., LLC AICD R.R. DAVIS PROPERTIES, INC. AS LESSEES. The Real Property or its address Is commonly known as 4200 W. TALAMORE BLVD.,, MERIDIAN,, ID 83642,s CROSS -COLLATERALIZATION. Jn addition to the Note, this Deed of Trust secures all obligations,, debts and flabilities, plus interest thereon, of Grantor to Lender., or any one or more of them, as well as all claims by Lender against Grantor or any one or more of #hern, whether now existing or hereafter arisOngt whether related or unrelated to #ire purpose'of the Note, whether voluntary or otherwise, whether due or not due, direct or indirect, ciet�rrn�r�ed o� undetermined, absolute or contingent., liquidated aE unliquidated, whether mai be I�able hdividually or jointl with others, whether obligated as guaEantar, suret , accommodation party or otherwise, and whether recovery u onsuchamounts may be or hereafter may be rme barred by any statute of 11mitations, and whether the obligation to repay such arnounts may be or hereafter may become o#heEw'p vse unenfaree able Grantor presently assigns to Lender (also known as Beneficiary in this deed of Trust} all of �irar�tor's right, tide, and interest in and to 211 present and future leases of the Propertyand all Rents from the Property. In addition, Grantor grants to lender a Uniform ComrnerciaE fade securityinterest Fri the Personal Property and Rents. THIS DEED OF TRUSTr INCLUDING THASSIGNMENT OF RENTS AND THE SECUFUTY INTEREST IN THE RANTS AND PERSONAL PROPE , IS C111EN TO SECURE (A) PAYMENT OF SHE INDEBTEDNESS AND JB) PERFORMANCE OF H1H AND ALL OBLIGATIONS UNSER THE NOTE, 7HE REl.QTED DOCUMENTS, AN 'AHI S DS D OF TRUST. THIS PEED OF TRUST IS G IVEN AND ACCEPT ED ON 7HE F0 LLON N G TERM : PAYMENT AND PERFORMANCE. Except as otherwise provided in this Died of Trust, Grantor shall pay to Leudet all amounts secured by this Deed of Trust as they become flue, and shall strictly and ire a timely manner perform all of grantor's obligations ender the Note, this Deed of Trust, and the belated Documents. POSS ES S 10 N AN D M A I NTEN AN C E 0 F T HE PRO P ERTY. G rancor agr ea s th at G muco r's posses:s ion an d us a o f th a Prop erty s h all be g over n ed by the following provisions, Possession and �.1 e. an the occurrence of �Event of Default, Grantor may(1) rerna�n in possession and control of the Property; (2) Use, operata or manage the Property; and () collect the Rents from the Property. The fallowing provisions relate to the use of the Property or to otheir limitations on the Properly. THE REAL PROPERTY EITHER IS NOT MORE THAN FORT(40) ACRES IN AREA OR IS LOCATED WITHIN AN INCORPORATED iTOR VILLAGE. Duty to Maint4cin. Grantor shall a in to in the Property In tenantable condition and promptly performa l l repairs, re1ac maintenance necessary to preserve its value, Compliance With Environmental Laws. Grantor represents and warrants to Lender that% (1) During the period of Grantor's leasehold inter est in the Property, there has been no use, gen crena n,, manufacture., storage.. treatment, disposal, release or threatened release of any Hazardous Sub tanca by any person on, under, about or from the Property.; ran for has no knowledge of, or reason to believe ere has been, except a s previously dmelosed to and acknowledged Len der in writaing, (a) any breach or violation of any Environmental Laws, (b) any use, generation, manufacture, storage.. treatment, disposal, release or threatened release of any Hazardous under, about or from.the Property by any prior owners or occupants of the Property, or any actual o r threatened litigation IF any kind by any person cal afro to such matters -p and (3) Except o previously disclosed to and acknowledged LenderF in r t in ga) neither Grantor nor any tenant, c ontractor� enc or other authorized user of e Propertyuse, i sp os a of o r release arty a s rdo u s u bs Lance o n, U n der, about or from the Pry Property; an asuch a ti i . in mli all app(tc abl a federal, state, and local la s, regulations and ordinances, including without limitation all Env'uronmental Laws. Grantor authorizes Len der and its agents to enter upon the Property to make such inspectocons and testi at Grantor's expense, as Lender may deem appropriate to determine complisnce of the Proper i this sectio of a Deed of Trust. inspections or tests irnade by Len der sh all be for Lend er fs pu rp o s a o n] y an d shat I n o t be on fru e d to cr eate a reg o n s i b it i or 11'ability on art of LenderGrantor or to any other person. The representation andWarranties contained herein are based on mucor due diligence i n invests at In th e Pr operty f o r H a zardo u s S u bstanc a. Grantor hereby (1) rel oases and waives any future claims against Lender for Indemnity contribution in the event Grantor becomes liable for cleanup or other costs under any such laws` and (2� agrees to indemnify and h DI d harmless Lender a g e in st any and all claims, Ionses, liabilities, dam �s penalties, �and expanses* h ich Leader m directly r indirectly sustain or suffer resulting from a breach of 'issect•on of the Deed of Trust or as a cons eu ah c e of anuse., generation, manufacture, staF r i s pos aI + release or threatened release occurring prior to Grantor's ownership or interest in the Property, whether or not the same a or should have been known to Grantor. The provisions of this section of the Deed of Trust, including the obligation to indemnify, shall survive the payment o f the Indebtedness and the z; ati sf action and reconveyance of the lien of this Deed of Trust and shall not be affected E%HISIT "g•• loan Na: 5590258 DEED OF TRUST {Continued} Page 2 by Lender's acquisition o f any interest in th a Property, h eth er b foreclosure r ec I os U r e o r otherwise. Nuisance,Waste. Grantor shall not cause,conduct or permit ars nuisance nor iwrnmit, permit,or suffer any stripping of or wasteon or to the Property or any portion of the Property. Without filmiting e generality of the foregoing, ran tot will not remove, or grant to any other party the r l to remove, any timber, i n er al s lincluding oli and ga d, coal, clay, scoria, soil, graver or rock products without Lendef's prior written consent. Remo vat of Improvements. Grantor shall not dem of i h or remove any Improvements fthe Real Property without Lender's r iior wrii tten consent. As a condition to the removal of any Improvements, Lender may require Grantor to make arrangements a tisfa ctor to Lender to replace such Improvements with Improvements of at least equal value. Lender* t; Right to Enter. Lender and Lender' agents and representatives may enter upon e Real Propertyat all reasonable times to attend to Len dents interests and to inspect the Real Property for purposes of Grantor's compliance it h the terms and c ori d iti o n :s of this Deed of Trust., Compliance with Governmental Requirements. Grantor shall promptl comply with a I I laws, ordinancesand regulations, now or hereafter r d. + i + in effect, of all governmental a u th o r iti 0 5 ap p li ca bl a to the u e or o c cup an cy o f th a Pry � in c I u direg without filmitation,the Americans With Disabilities t. Grantor may contest in good faith any such law, o rel ire a n c e, or regulation andwithhold compliance during any r Proceeding, including appropriate appeals, o long as Grantor has notified Lender in writing prior to doing so and so long as, in Lender's sole opinion, Lender's interests in the Property are not Jeopardized. Len der may require Granfor to post adequate e c uric or a surety bond, reasonably satisfactory to Lender, to protect Lender's interest. Du#y to Protect. Grantor agrc-es n eith er to aban dan or leave unattended the Property. bra #ar shall do all other ac#s, in addition to th os e acts set forth above in tf�i� s�ctior�, whichfromtie character and use of the Propertyare reasonably necessary t� protect and preserve the Property. Co MPI' an ce with L eas e. Gran for i11 pay all r e n is a n d wil I stn i tl y o bs erve an d p erfor m on a tim ely b a 9 I's all o th er t condiflons of the Lease. Grantor ranfor it l indemnify and hold Lender harmless p airst all losses., Is bil itis sactions, s u i PCostsroceedings, including reasonable attorneys' fees claims, demands, and damages whatsoever which may be 'incurred by reason pay rents or strictly observe or perform under th o Lease. Other Agreements Relating to tha Lease. Grantor further agrees (1) n o f to surrender., terminate or cancel the Lease, modify, charsge, supplement, alter, or amend a Lease, either o rat l or ire writing, without Lender's prior written consent. Any attempt by Grantor to do any of the foregoing with out Lender's prior written consent will ba void and of no force and effect At Lender's option., Grantor will depo a with Lender as further securit all original documenis relating to the Lease and the leasehold interest 'in the Unless Grantor 'i's Fn breach or default of any of the terms contained in this Deed of Trust, Lender will have no right to cancel, modity, change, supplement, alter or amend the leasehold interest. No s to to in the Property, h eth of fee title to the leasehold leasehold estate, or any subleasehold estate* will merge without Lender express written consent; rather these estates i I remainand distinct, even �f there rs a union of these estates 'in the landlord, Grantor, or a third party who purchases or otherwise ac quires the estates, Grantor further agrees that if Grantor acquires all or a portion of the fee simple title, or any other leasehold o r subleasehold tF e Property, that title will, at Lender"s option, "Mmedlately become sirb ject to the terms of this Deed of Trust, and Grantor will execute, deliver and -record all documents necessary or appropriate to assure that such title ' is secured by thisTrust, Notices Rei acing is tha Lease. Grantor will promptly notify Lender in wrifing. (1) if Grantor �s in default in the per-fo anon c e or observance of any of the terms covenants, or conditions h i c h Grantor 'I's to perform or observe under the Lea s e� (2) if any event occurs which would constitute a default under the Leasw (3) if any no tics of d of a u I t is given to G rancor by th a I an d10 rd u n der tip a Lea s e. (4) 'if, pursuant to the Lease any proceeds received for the Property are deposited with someone other than Lender, w0hether received from any 'insurance on the Property or from the taking of any or a I l of the Property by ernire en t do rna ire ` and (5) if any a r buratic n or a p p rai sal proceedings are requested or insfituted pursuant to the Lease+ Grantor aCire es to provide Len der promptly 'Kh a copy of all written materials relatip to any of the above and to provide Lender with such other information as Lender may reasonably request. Grantor agrees that promptly after the execution and deflive-ry of this Dead of Trust, Grantor will notify the landlord under a Lease in writing of the execution and de I i er of is Deed of Trust and of the name and address of Lender der and will deliver a copy of this Deed o f Trust to the lah di Ord Option to Cure Lease Default, Upon Lender's receipt of any written notice o f Grantor's default under the Lease, Lender may, at Lender's opts Dn, cure such default, evert thougli Grantor, of any party on behalf of Grantor, qu est'ions or den # es the existence o f such default o r the nature of the default,, Grantor expressly grants to Lender the absolute and irnm ethics right to enter upon a Propeirty to such extent and a often as Lender in it sole discretion dsems necessary or desirable In order to prevent o r cure any such default by Grantor. LenderN THE DUE ON SALE CONSENT BY LENDERAN m ay, at Lender's option, declare immediately due ar�eal� e u M recti r isEM ILD I e - 4 , + ASbtere:st � i Trust u p o n a sal a or tri n sfer . ith out Len dei s pilo r written co n s enc, o f all or an art of P%roperty,o r a n Prop arty. as re o r transf er mean s the conveys n c a of R ea! Pro p erg o r any rig h t, fid a or interest in tip e R ear Pry per ty wheth o r a qu Kable; wh eth er vo tunta ry or invo I u n to ry{ wh eth er by o u tri gh t s ia ie, deed, insta I I enc sal a contr act I an d o o ntxact,. leasehold interest with a term greater than three (3) years,lease-option contract, o r to an y ion d cru st h o Iding t itl a to th a R cal Prop arty, or by any oth er meth o d of Co n veya n ce of an in terest 'in th e A eal Prop a r ty. If a ny Grantor is a corp Orono n, P arta ersh ip or limited meted fla til icy co mpany, tri ns ler al s o 'in c1 u des any chi n ge in owner sh 1'p of more than tw en ty4 ive th e votin g sto c k+ p a rtn ersh ip inter es is or Him iced I is b it ity cornea n inter es t, as th a Cas a may beof s u c h G Forton, H o waver, i �i� i� � ��1on s h al i riot be exercised by Lender of such exercise is prohibited by federal law or by Idaho la , TAXES AND LIENS, The follow"re g Provisions relating to the taxes and liens on the Property a art o f this Deed � r� � f Trust: Payment. G ra roto r s h a] I pa y w h en du a (an d Jn a I i events prix r to de lin q u en c y) all to es + ec i a i taxes ass as men � Liar F � - � i � � � � � fin�lu�llr�� r �n t �� I �rti� nu!-�rrnshall artdue # i �f work done on or for servicas rendered or material furnished to a Property. Grantor shall maintain th a Property free of all Hens hav inti to th a 'in ter est of Len d er un d er this ID a ed of Tr u at, except for the l i m o 1` taxes an d a n s es sments n o t du s a n d exc ep t as o th er wis a p rovided in this Deed of Trust.. RI1� r r i 1 1~ n�R� E i in 0n r a ct ion with a good faith obligation to Pay, so Ion as Lender's interest in the Property is not Jeopardized, If a lien a rises or is filed as s result o Grantor shall within fifteen (151 days after the lien arires or, rf a Hen i filed, fth l*n fifteen ( days after Grantor has nox ice of th a Min e C Urs th a disch a rge o f th a 1i on, o r if requ este d by Len der, d e p o sit with Len der ca s h o r a s u f fi dent c o rpo r ate sur ety b on d o r oth er s ec u rity satisfactory to Lender 'in an amount sufficient to discharge the lien plus any costs and reasonable attorneys' fees, or other could accrus as a result of a foreclosure or sale under lien. In any contest, Grantor shall defend 'Itself and Lender and sh;all satisfy any adverse itidgment before enforcement agoinst the Property. Grantor shall name Lender as an additional a bl ie e under a n suretV bond furnished in the contest proceedings.. Evidence of Payment. Grantor shall upon demand furnish to Lender satisfactory evidence of payment of the taxes or assessments authorize the app r opriata governmental official to deliver to Lender at any time a written statement of the taxes and assessments against1he Props rte. oti 06 Of n stru otron G r an t of sh all n otify Len der at I east fifteen 0 ) days b of or a any wo rk is co nnmen c ed., any services ar a fur n is h e d, o r any materials are supplied to the Property, 'if any mechanic's lien, m ateria1 m en's Hen, en, or other lien could be asserted on acro u n t of the work, servkes, or materials. Grantor will upon request of Lender furnish to Lender advance assurances satisfactorV to Lender can and will pay the cost of such 'urnprinvements. PR 0 PERTY DAM AG E IN LAR AN CE, Th a f o 11 o win g p rovi s ion s re i atin g to in surin g th e Pry p erty are a part o f this D ee d o f Tru st, Maintenance of In suranca . cantor shall pro ure and maintain polisies of fire insurance i standard extends d coverageendorsements on - a r a p1 acem en t bas i s 1•o r th a fu1 i in sur obi a valu a covering a I I Impro ve menta on th e Ft eat Pry party its a n ar o u int su f i c ien t to avo i d ap p lic ation o f any c o insuran c e cl au se, an d With a s to n d a rd ma rtg a gee cl au s e in fa von c f Leri der. Grantor shall also pro cu r e and maintain ire comprehensive genera11 la biro `insurance in such coverage amounts a s Lender may request i Trustee and Lender being named as additional 'insureds in such liability nsu ran e p o l isles . Additionally, Grantor shall maintain such other insurance, cncluding but n o f limited to Loan No: 5590258 DEEB OF TRUST {Continued} Page 3 h aza rd, busibn as 9 in to rruption + a n d ba 11 er 'in sur an ce, a s Len d er m ay r ea s on a bI y r e qu i re. P o1 is ie s sh all be written i n for m., am ou n ts., c a ve ra g a s and basis reasonably acceptable to Lender and issued by a company or Companies reasonably acceptable to Lender. Grantor, upon request of Lender, will deliver to Lender from time to time th a pol i G i es or certificates of insurance in form satisfactory to Lender, Including IF stipulations that coverages ill not becancelled or diminishedwithout at least ten (10) days prior orwritten inotice to Lender. Each insurance policy also shall include an endorsement providing that coverage in favor of Lender will not be Impaired in any way by any act, omission or default of Grantor or any other person. Should the Real Property be located in ars area designated by the Director of the Federal Emergency Management Agency as s special f 1 o o d hazard area + Grantor agrees to obtain and maintain Federal Flood Insurance, i f a s lla b1 e, within 4 days after notice is given by Lender that the Property is located In a Special flood hazard area, for the full unpaid p rant ip al balance of the loam and any prior liens on the property securing the loan, up to the maximum policy limits set under the National Flood Insurance Program, or as otherwise required by Lisndnr# and to maintain such insurance for the term of the loan. Application a� �to�eeds. r�n�or �h��l �ramptly notify Len��r �# ani �os� o� dar�2�ge to the Property.Lendermay make ���o� of foss i# bran#ar fails to do so within fifteen J15) da of the casuafty. Whether or not Lender's security is impaired, Leader may, at Lender's electio, roc ve and retain the proceeds of any insurance and apply the proceeds to tie redu ation of the I n d ebeines # p aym int of any I€en affecting the Property, or the restoration and repair of the Property. If Lender elects to apply the proceeds to restoration and repair, Grantor shall repair or replace the damaged or destroyad Improvements �n a manner satisfactory to Leder. Lender shall, upon satisfactory proof of such expenditure, pay or reimburse Grantor from the proceeds for the reasonable cost of repair or restoration 'if Grantor �s not in default ' under this Deed of Trust. Any proceeds whish have no#'heert disbursed within 180 days after their receipt and which fender has not aornrnitt�d t� the repair �� ���tarati�n of the Property sF�all ha u��d firs# to pay �� arr�ou�t �vvir�g t� Le€�der under #h� Deed of Trust, then to pay accrued interest, and the remainder, i# any, shall be applied to the principal balance of the Indebtedness. If Lender holds any proceeds after payment in Full of the Indebtedness, such proceeds shah be paid to Grantor as Grantor's interests may appear. Grantor's Report on Insurance. Upon tequet of Lender, however not more than anon a year, Grantor shall furnish to .ender a report on each existing policy of insurance showing: (1) the name of the ir�nsurer: (2) the risks in uredt (3) the amount of the policy; �(4) the property insured, the they current replacement value of such property, and the manner of determining that value; and {5} the expiration date of the policy. Grantor shall, upon request of Lender, have ars independent appraiser satisfactory to Lender determine the cash value replacement cost of the Property. LENDER'S EXPENDITURES. If any action or proceeding is commenced that would materially affect Lender's interest in the Property or 1f Grantor fails to comply with any provision of this Deed of Trust or any Related Documents, including but not limited to Grantor's failure to discharge or pay when due any amounts Grantor is required to discharge or pay under this Death of Trust or any Related Documents, Lender on rantor* halm but shall l not b1 i ted t t r� ctio n that Lender deems appropriate, including but not limited to discharging or paying all taxes, liens, security interests, encumbrances and other claims, at any time levied or placed on the Property and paying all costs for insuiring, maintaining and preserving the Property. All such expenditures incurred or paid by Lander for such purposes will then bear interest at the rate charged under the Note from the date incurred or paid by Lender to the date of repayment by Grantor. ll such expenses will become a part of the Indebtedness and, at Lender's option, will (A) be payable o n dernand-1 (13) be added to the balance of the Note and be apportioned among and be payable with any installment payments to beconne due during either (1) the term of any applicable insurance pD icy+ or (2) the r ems in ire term of the Note; or (C) be treated as a balloon payment i c h will be clue art d payable at theNote's maturity. The Deed of Trust also will secure payment o f these amounts, Such right shall be in addition to all other rights and remedies to which Lender may be entitled uon Default., WAR RAN TY D E FEN SE 0 F TI TL E. TIS a fol I ow in g p ro i t on s r Blatin g to own ere h ip of th a Pro p erty a re a pa rt of this D e ad of Tru at F Till e.Granto r a rran is that: (a) Grantor h o i d s good and mar keta b1 a titl a of re or d to the I ea s hot d interact in the Pr op ertV pursuant to the Lease, free and clear of all Hans and encumbrances other than those set forth in tha Real Property description *or 'in any titre insurance policy, titIa report, or final ti a opinion issued i n favor of, and accepted by, Lender i n connection with this Dead of Trust, and (b) Grantor has the full right, power, and authority to execute and deliver this Deed of Trust to Lender. Defense o f Title, Subject to the exception i n the paragraph above, Grantor warrants and will forave r defend the title to th a Property against the lawful claims of all persons,. In th a event any action r proceeding i tc comm en o ed that questions Grantor's title a r the 'Interest of Trustee or Lender under this Da ed of Trust, Grantor shall da fend the action at Grantor's expen eF Grantor may be the n o mina I party in such proceeding, but Lender shall be entitled to p artic ip ata in the proceeding and to be represented 'in the proceeding by counsel of Lender's ovvn choice, and Grantor will deliver, or cause to be delivered, to Lendar such 'Instruments as Lender may request from time to time to permit such participation. Compliance With Laws. Grantor warrants that the Property andGrantor's use of the Property c o p1 i s ith a l i existin g applicable laws, ordinances, and regulations of governmental authoritie . Survival caf Representations and WarranVes. All representations.,warranties, and agreements made bGrantor in this Dead of Trust shall survive th a exec u tion and def iv ery of this Dead of Trust, shall b e c ontin u in g ire nature, and shall remain 'in full force and effect until such time as Grantor's indebtedness shall be paid in full* CONDEMNATION. The following pro i ions relating to condemnation proceedings are a part of this Dead of Trust: Proceedings. It any proceeding in condemnation Is filed, Grantor shall promptly notify Lender in ri DEED OF TRUST Loan No: 559025EI (Continued) Page 4 Jr Addresses. The maifirrg addresses of Grantor (debtor) and Lender (secured party) from which information concerning the security interest granted by this deed of Trust may be obtained (each as required by the Uniform Commercial ode) are as stated on the first page of this Deed of Trust. FU RT HER AS S U RAN CES ATTOR NEY 4 i * FA CT. Th a foil o win g p rovis i on s rel atin g to fur th er as u ra n ces a n d att of n e - ire -fa at a r e a p art of th iis IDeed of Trust: Furth a r A slur a n ce s. At a ny time . a n d fro m tim a to t ins e., u p o n r eggs st of Len d e r,, Gran t or will m aeex ecute an d d el We ror it I ca u s e t t o be mado, executed or delivered, to Lender or to Lender's designee, and when requested by Lergderr, cause to be fl[ed, recorded ire it ed or rerecorded, as the case may be, at such tines and in such offices and places as Lender may dem appropriate, any and all such mor deeds of trust, security deeds, security agreements, financing statements., continuation statements, instruments of further assurande, C ertif [ca to , an d oth er d oc u m en is a s m a, in th a so 19 opinion o f L en der, b e n e c e s ary o r d a s Ira bi e in o rd er to of fa ctu ate om1 eta erf ec t, continue, or preserve (1 Grantor's obligations under the Note, this Deed of Trust, and the Related Documents, and (2) the lions and security nterests created by this Deed of Trust a first and prior liens o n the Property,whether now owned or hereafter a cu i re d � a• Grantor. nes prohibited by law or Lender agrees to the contrary In r rt i g,Grantor shall -reimburse Lender for all costs and a en s es .1 r IF, incurred in connection ith the matters referred to i n this s para graph. A"orneywjn-wFact, If Grantor fails to do any of the things referred to in th e preceding paragraph,Lender may do so for and in the name o Gran for an d a t Gr anto s exp erg s e* Foir su ch p u rp o s e# 0 ra n for h ere by i rr evoc a bi appo in is Len der a s G r a n t or's a"o rri. ey -in -1•a c t f r th d .1 * + purpose of making, executing, deJrvering, filing, recording, and doing all other theins as may be necessary or desirable, in Lender's sol op i n ro n.. to accomplish the matters referred to in the preceding paragraph. FULL PERFORMANCE. If Grantor pays all the Indebtedness when due, and otherwise performs all the obligations i o ed upon Grantor undo this Deed of Trust, Lender shall execute and deliver to Trustee a request for full reconveyance and shall exacute and deliver to Grantor suitable statements of termination of any financing statement an file evidencing Len der o s security 'Interest in the Rents and the Personal Property. Any r e c o n voya n ce fee required by law shall be paid by Grantor, 'if permitted by applicable law. EVENTS OF DEFAULT. Each of the following, at Lender's option, shall constitute an Event of Default under this Deed of Trust: Payment Default. Grantor fails to make any payment hen due under th a Indebtedness. 0 the r De fa ults. G ra to r f ail s to c omp I y with o r to p erfo rm a ny oth or term.. o bI i ga do n, c oven a n t or r o n d it i on c onta in ed in this D ee d of Tr U or in any of the Related Documents or to comply with or to perform any term, obligation., cov en an or condition contained in any other � r agreement between Lender and Grantor, Compliance Default. Failure to comply with any other term, obligation., coven ant or condition c onta I n ed i n this Dead of Trust, the Note or i any of the Related Documents* Default on Other Payments. Failure of Grantor within the time required by this Deed of Tru:st to make any payment for taxes or insurance, or any other payment necessary to prevent fal n g of or to effect discharge of any lien. Default in Favor of Third Farces} Should Grantor default under any loan, extension of creditsecurity agreement, purchase or sales a g re em a nt, o r a n y oth er a g re erg a n t, in fa o r of a cry oth of c re d,tor or pe r s on tip at rn a y mater i a I ly of fect any of G ra n for' s p rop erty 0 r Grantor's ability o repay the Indebtedness or perform their respective abligations under this Deed of Trust or any of the Related Documents., False Statements. Any warrentV.- representation or statement made or furnished to Lender by Grantor or~ on Grantor's bete alf under Deed of Trust or the Related Do currents is false or misleading in any material resect, either now or at the time made or furnished becomes false or misleading at any time thereafter. Defective Coll ate rat 'rz atio n. This Deed of Trust or any of the Related Documents ceases to be 1 n full force and effect Jincluding failure a ny coil atera1 doc ument to c ra at e a vel id an d p er f e cted s ecurity )n ter est o r i Men) at an y time an d for a n y r ea s on, Insolvency. The dissolution or termination of Grantor's existence as oirr business the insolven cy of Grantor, the appointment receiver for any part of Grantor's property, a n assignment for the benefit of creditors, a n y type of creditor workout, or the commencement of any proceeding under any bankruptcy or insolvency 1a s by or against r an f or t redisor a r Forfeiture Proceedings. Commencement of foreclosure or forfeiture roceedin nether by *Judicial proceeding, repossession or any other -method, by any creditor of Grantor or by any governmental aencagainst a n roa rtsecuring the Indebtedness. This includes a garnishment of any of Grantor' norounts+ 'Including deposit accounts with Lender* However, this Event Default shall not apply if there is a good faith dispute by Grantor as to the validity or reasonableness of the claim whip � e basis � +� of the creditor or forfeiture proceeding and if Grantor Grantor gives Lender written r itte n notice of the cr editor o r forfeiture proceeding and deposits with Lender monies or a sure bond forthe creditor or forfeiture proceeding, in an amount determined by Lender, in its sole d is crat io n as being adequate reserve or bond for the dispute. Lease Default. Grantor defaults under the terms of the Lease, or any other event (whether or not Grantor's fault) resueis in the termination or cancellation of Grantor's leasehold rights. Breach of Other Agreement. Any breach by Grantor under th a terns of any other agreement bet oen Grantor and Lender is remedied within any grace period provided therein, including without limitation any agreement concerning any indebtedness obligation of Grantor to Lend ar# whether existing n o or later. Events Affecting Guarantor. Any of the preceding events occurs with respect act to any Guarantor of any of the Indebtedness Guarantor die0.s or becomes incompetent, or revokes or disputes the validityof, iof liabilityunder, an Guarantyof the Indebtedness. event of a d each + Lender, at its option, may, but shall not be required to + permit theGuarantor's estate to a s s u me unconditionally h obligations arising under the guaranty in a manner satisfactory to Lender, and, in doing ocure any Evert of Default. Adverse Change. A material adverse change occurs in Grantor's financial condition or Lender believe the prospect of payment or performance of the Indebtedness is impaired. Insecurity. Leader in good faith believes 1tselt insecure. Right to Cure.. If any default, other than a default it payment is curable and it Grantor has not been i en a notice of a 11 breach of the same provision of this Deed of Trust within the preceding twelve ( months, it may be cured if Grantor, after receiving wr i tt Lender demanding cure of such default: (1) cures the default within fItteen (15) d� s; or if the cure requires more(15) days, immediately initiates steps which Lender deems in Lender's sole discretion to be sufficient to cure the default and d therea1~ter continues and completes all reasonable and necessary steps suffloient to produce compliance as Soca as reasonably ract c RIGHTS AND R91MEDIES ON DEFAULT. if an Event of Default occurs under this Deed of Trust, at any time thereafter, Trustee or Lender may e emise any one or more of the following rights and rismediO L t coca of Default. 1n the Event of Default Lender shall execute or cause the Trustee to execute a written notice of such default and of Lenders election to cause the Property to be siold to satisfy the Indebtedness, and shall cause such notice to be recorded In the office the recorder of each countV wherein the Real Property, or any part thereof. is situated, E re ction o f Re me Irl e s * Election by Lender to pursue any remedy shall not exclude ur s u it of any other remedy, and an election to make expenditures or to take action to perform an obligation of Grantor under this Deed of Trust, after Grantor's failure to perform, shall not affect Lender's right to declare a default and exercise its remedies. Accelerate Indebtedness. Lender shall have the right at ids op tion ith o u t notice to Grantor to declare the entire Ind bt d r� ��� +++ , immediately ur�payable, i r� r�.r i n g any prepayment penaltywhich Grantorwould be required to pay. Foreclosure. With respect to all or any part of the Rear Property, the Trustee shall have the right to foreclose by notice and sale, and Leader shall hava the right to foreclose by Judicial foreclosure, in either case in accordance with and to the full extend provided b appl Eta hl e I a w. UCC Remedies. With respect to all or any part of the Personal Property, Lender shall have all the rights and irem effle s of a secured party under the Uniform Commercial Code. k 1h Collect Rents. Lender shall have the ra ght, without nob t a to Grantor to tak a possession of and manage the Property a n d collect thig Rents, including amounts past due and unpaid, and apply the net proceeds, over and above Lender's ' cosh against in st the Indebtedness. � n ss. err furtherance of this right, Leader may require any tenant or other user of the Property to maks payments of -rent or use fees directly to DEAD OF TRUST Loan �IVo: 5590258 (Continued) page g Lender, I f ih e ll e n is ar a c o l# e c t ed by Le n der, th en Grantor it revo c a bI y d e i g n ate s Len d er as G r anto is atto rn lire -fa ot tnors instruments received in payment thereof in the name of Grantor and to negotiate the same and collect th e proceeds. Payments by tenants or other users to Lender i response to Lender's demand shall satisfy the D bl iatio n s for which the payments are made, hether or not proper grounds for the demand existed. Lender may exercise its rights une'er this u ba rarah either in person, by agent, or through a re cee r. Appoint Receiver, Lender shall have the right to have a receiver appointed to take possession of all or any part of the Property, i power to protect and preserve the Props-rty, to operate the Property preceding foreclosure o r sale, and to collect the Rents from the Property and apply the proceeds, over and above the cost of the to eivership, against the Indebtedness. The receiver* may serve without bond if permitted by Jaw. Lender right to the appointment of a r ec e6sver shall exist h eth er or not the apparent value of the Property exceeds the Indebtedness by a substantial amount. Employment by Lender shall not dig ualiffa person from serving as a receiver, Tenancy atSufferance. IfGrantor remains n possession of the Property after the Property is sold a fo it ed above or Lender becomes entitled to possession o f the Property upon default of Grantor, Grantor shall become a� � n an t at sufferance of Lender or the purchaser of the Property and shall, at Leader's option., either (1) pay a reasonable a rental for the use of the Property, Property 'immediately upon the demand of Leader.. Other Remedies. Trustee or Lender shall have any other right or remedy provided in this bred of Trust o r the Note or by I aw Notice of Sale. Lender shall give Grantor -reasonable n ottc t i rx I �I i l # r r 4 F � f o r of the time after which any private ale or other' intended iris p os i �� �� � 1` t� � ��r � � r� � � �r� � � i t� �� �� ��� �� � unable notice shall mean notice given at least ton (10) days beforei the time of the sale or disposition * n sale of the Personal Propertym� b� - any s a[ s o f th e ll cal Pro pert , � � ���� ire ���������rr its of th a Pro per~ty. To th a eaten t p er itted by a p p I ica bI e I a , ranto r h er e aF iveany an d a I l rights to h ave th a Pr op e�'tmarshm�r�a I I a d, I n a aralsing its r~rght and remedies, the Trustee or Leader shall be free to sell all or any part of th a Propertytogether or separately, i in one sale or by separate sales, Lender shall be entitled to b'd at a public i s sale a n all I or` � any portion o f the Property. Notice of sale having been atven as then required by law, and not less than the time required by law having elased Trustee without demand the property at the time and place fixed by 'it in the n o f i ce of sale at public auction to the highest United States, payable at time of sale. Trustee shall deliver to the purchaser his or her deed convaying any covenant or warranty express or implied. The recitals 'in such dead of any matters or facts all be conclusive proof of the truthfulness of such matters or facts. After deducting a I l costs, fees and expenses of Trustee and of this including cost of vid en ce o1' title a n d reasonable attorneys' fees, including those 'in connection with the sale, Trustee shall apply proceeds of sale � F � � � � payment of ja� a I l Sums expanded under this Dead of Trust, not then repaid with interest thereon as providad In this Deed of TrUSt L(b) all Indebtedness secured hereby% and M the remainder, if any, to the person or persons legally entitled thereto. Attorneys' Fes m, Expenses. If Lender institutes any suit or action to enforce an o f the terms o f this Deed o� � Trust, Lender shall be entitled to recover such sum as the court may adjudge reasonable as a tto En oys i fees at trial and upon any appeal. h eth er or not any court is involved, and to the extent not prohibited by law, all reasonable expenses Leader incuru that in Leader's opinion time for the protection of alts interest or the enforcement from expenditure o f its rights shall become s part t of the Indebtedness payabIe on demand a n d shall bearinterest at the Note rata the date of the unti'll repaid* E enses covered this i however subject to any l irn its under applicable law, Lender is reasonable n s bl a atto rn s' fees and Lantier's legal e en ehrr nrF rs a lawsuit, Including reasonable attorneys fees and expenses for bankruptcy pro au tom at is stay or injunction), appeals, and any anticipated post- *u � mint curl ec tj on erva c e� i J � � th a cost � � searching i n � f� �� �'�� obtaining rn g tail e reports (including foreclosuIFr e reports), ur veyors' reports, and araisaI fea Mle insurance, and fees for Trustee, to the extent permitted by applicable law. Gran for also will pay any court costs, in a d d i talon to a l l other sums provided Rights of Trustee. Trustee shall have a l I of the rights and duties of Lender as s et� 1: rth 'in this section. POW5RA D OB L I TION OF TRU TEE * T a followng i p rovis iions relating to the powers and obligations of Trustee are part of this Dead of Trust, 0 0 VV, Powers of Trustee. In add Won to all powers o f Trustee arising a s a matter o f lam Trustee shall have the ow e actions with respect to the Property upon the written r e q u est o Lender and r an to r F a join 'in preparing and filing Real Prop a rt , including the dedication of streets or other rights to thepublic-,(b) ' o i n + � trn gr rng any easement or creating any restrictIon on the Real Proper Deed of Trust, + and W join i n any subordination b or din a tl o n or other reem e � t� a F f Trust o r the interest o f Lender under th rs Obligations to Notify, Trustee shall not be obligated to no efY any othar party of a pending sale under ntr truster lion, r~ of any action or proceeding in which Grantor, Lender, or Trustee shall be a party, unless the action or proceeding 'i's brought by Trustee. Trustee, Trustoo shall meet all qualifications required for Trustee under applicable lam addition F es set forth above, with respect to all or any part of the Property, the Trustee shall have the right to foreclose i the right to foreclose by Judicial foreclosure, in either case in accordance with and to the full extent provided by applicable l u cce r sur Trustee. Lender, at Lender's option, may from time to ti me appoint a successor Trustee to any Tru ste e` app o f rued under this Deed of Trust by an instrument executed and acknowledged bLender~ and recorded in the office ice o f the recorder of DCounty, tate of Idaho. The instrument shall contain, 'in addition to a l l other~ matters reu it e d� state F � �� the names �� � 1~ the � Lender,, Trustee, and Grantor, the book and page where this Deed of Trust is recorded, and the name and address of the successor tru to f a n d the instrument shell be executed and acknowledged by Lender or its successors i -n interest. Th a successor trustee, without Shall succeed to all the title power, and duties conferred upon the Trustee in this Deed of Trust and by applicable substitution of Trustee shall govern to the exclusion of all other ro v i s io n s for substitution. NOTICES. Any not" �i n n� r t i Tr �n ru�i mit I F hoot imitation any notice of default and an notice of ale shall be given in writing, and shall be effective whan actually delivered, when actually received by telefac imJl unless otherwise law), when deposited with a nationally resognrzed overnight sourierr or, if mailed, when deposited in the United States mail, as first certified or registered mail postage prepird, directed to the addresses shown n ear the baginning of thi's Dead of Trust. All copies ofnofices Of foreclosure fro the holder of any lien which has priority over this Deed of Trust shall be sent to Lender's of this Deed of Trust. Any party may change its address for notices under this Deed of Trust � giving formal i - � � � written notice � � the other Parties.. Specifying that the purpose of the notice is to change the party's address, For notice ur o e Grantor agrees to kieep Lender informed at all t'smes of Grantors current address. Unless otherwise provided or required lam if there is more than one Grantor, F � � � r � � n notice e g ilven b Lender to any Grantor is deemed to be notice given to all Grantors. EXHIBIT ""A". An exhibit., tided '"]EXHIBIT " "#" is attached to this Deed of True and bthis reference is made a art of thi's Dead of Trust just as a SII t pr r tons, terms and conditions of the E h ibit had been full set forth in this Deed of Trust.. MISCELLANEOUS PROVISIONS. The following miscellaneous provisions are a part of this Deed of IF Arne n d ment s. This Dead of Trust, together wig any Related Documents, (;onstltutes the emir g understanding and agreement of the parties as to the matters set forth ire this Deed of Trust, No alteration of or amendment to this Deed of Trust shall be effective un1egiven 'in Writing and signed by the party or patties sought to be charged or hound � the alteration or amendment. Annual Reports. I the Property 'iused for purposes other than Grantor's residence, Grantor shall fu m ics h to Lender, upon request, a Certified statement of net op erat I g income received from the Property during Granto'previous fiscal year in such form and detail as Lender shall require* "foot operating income's shall mean all cash receipts from the Property less afl cap � h expenditures made in connection Mth the operation of the Property. Caption Headings, Caption headings irr this Deed of Trust are for convenience purposes only and are not to he used to interpret or defiv ne th a err ions of this Deed of Trust, Merger. There shall b e no merger of the interest or estate created by this Deed of Trust with any other Interest or estate In the Property at any trm a held by or for the benefit it of Lender in any capacitVt without the written consent of Lender. Governing Law. This Deed of Trust will be governed by federal law applicable to Lender aril, to the extent not preempted by federal 1, the laws o f the State of Idaho wkhor.rt ra gird to its conflicts of law provisions. This Deed of Trust has beien accepted t� � � d by Lender in the State of Idaho. Choice of Venue, if them is a lawsuit, Grantor agrees upon Leader's request to submit to the jurisdiction of the courts of ADA County, State of Idaho, DEED OF TRUST Loan No: 5590258 (Continued) Page g Joint and Several Liability. All obligations of Grantor under this Dead of Trust shall b +o ire t and several and a I l references to Grantor shall mean each and every Grantor. Tis means that each Grantor signing below is responsible for all obligations in this Deer of Trust., any one or more of the parties 'is a corporation, partnershi Px limited 11ability company or similar entity, it is not necessary for Lender i n q u i re into the powers of any of the officers, directors, partners, members, or other agents actinor purporting to act ,R! i behalf, and any obligations made or created in reliance upon the professed exercise of such powers shall be guaranteed under ` Trust. No Walver by Lender. Lender shall not be deemed to have a ive d any rights under th is Deed of Trust unless such waiver 'I's given` and signed by Lender. No delay or omission on the part of Lender in exercising any right shall operate as a waiver of such right other right. A walver by Lander of a provision of this Dead of Trust shall not prejudice or anstjtute a waiver �fi � � �' � �r r i g h t o th er wise, to demand strict compliance ith that provision or any other provision of this Deed of Trust. H ri or waiver by Lender, dealing between Lender and Grantor, shall constitute a waiver of any of Lender's rights o r of any of Grantor's obligations transactions. Whenever the consent of Lender i:s requited under this Deed of Trust, the granting of such consent by Lender in any instance shall net constitute continuing consent to subsequent instances where such consent is reaired and in all case such consent may. be granted o r withheldin the sole drs cra don of Lender. Severability. If a court of competent Jurisdiction finds any provision of this Deed of Trust circumstance, to be illegal, irvali �or unenforceable at o any F IL or that finding shall not make' the offending provisron illegal, ''InvaIid, or enenforceabla s to another ofsotl o r F f 0.circumstance. If feasiblei, the offending provision shall be considered modified so that it becomes legal, valid and enforceable. If the offending pr ova s i on cannot be so m o d ifl ed, it shall be considered deleted ffiom this Deed of Trust. Unless otherwise re u it d by law, the illegality, invalidity, or unenforceability of any provision of this Deed of Trust shall not affect the legality, Validity or enforceabi . other provision of this Deed of Trust. Successors and i n s. Subject to any limitations stated 'in this Deed of Trust on transfer of Grantor's 'Interest, this Dead of Trust shall be h in ding upon and inure to the benefit of the parties, thait successors and assigns. if ownership of the Property becomes vestedin other than Grantor, Lender, without notice to Grantior, may deal withGrantor's successors ith reference � e to this s Dead of Tri and the Indebtedness by way of forbearance or extension without releasing Grantor from the obligations of thisDeed.+� �� Trust � t �r liability rJ � under te In debtedness.. Time is of the Essence. Time is of the essence in the performance of this Deed of Trust. Way ve Ju ry, t Al I pa rtie a to this De ed o f Tru st h a re by w a i ve ih $ ri ght to any jury I rial i � �� act � r� � � i F m brought by i ve r of Homestead Exemption. Grantor hereby releases and waives all rights and benefits fits o f the homestead ries tea d exemption laws of the State of Idaho a!s to all Indebtedness secured by this Deed of Trust. DEFINITIONS., The following capitalized words and terms shall have the following meanings when used in this Dei 'fica � � � �� T���tF ��r��� speal I ly sta ted to th a o n tr ar , al I r eferen ccs to d of I ar am o un is s h al I ea n a me u n is in la fu I m o n � of th United erericar and terms used in tha singular shall include the plural, and the plural shall 'Include the singular, as the context may require. Words and terms not n th er i e d of in e d an th i's Deed o f Trust sly all h ave th a m can in g s a ttri buts d to nuc h term s in th a Un ifo rm Co mm erc i at C o d e Beneficiary. The word "Beneficiary" means IDAHO INDEPENDENT BANK, and its successors and asci s+ Borrower. The word "Borrower" means LAKEVIEW MERIDIANINVESTORS, LLC -1 and R.R. DAVISin co-signers and co -makers signing the Note and all their successors and assigns, Deed of Trust* The words "Deed of Trust" mean this Dead of Trust among Grantor Lender, and Trustee, F i + tatson all assign -m en t and s ecu r i interest pro i s i n n s relating to the Personal Property and Rents. Default. The Ord "Default" means the Default set forth in this Deed of Trust in th e S senor Cited "Default". Environ mens ai Laws. Th a words "Environmental Laws" mean any and a i r state, federal and local sta�� ��� regulations I ��- �� �n� �tern����s relating to the protection of human h or the environment, 'Including without limitation th a Comprehensive Environmental Compensation, and Liabi'lity Act of 1980, as amended, 42 U. -S C. SeCt'011 960 1, et seq. ("CERCLA"), the Superfund Amendments and Reauthorization Act of 1986, Pub, L. No, 9S-499 1"SARA"), the Hazardous Materials Trans ortation Act 49 U the Resource Conservation rend _ Re cover Act, 42 U.S.C.Section 6901, et s e,or other applicable sty e or federal laws, rules, or regulations adopted p u rs u a n th ere. Event of Default. The words m Event of Default" mean any of the events of default set forth in this Dead oTrust section of this Deed of Trust. Grantor. The word "Grantor" means LAKEVItW MERIDIAN INVESTORS, LLC, and R.R. DAVIS PROPERTIES.. INC,, Guarantor. The word"Guarantor" s a n s any guarantor., surety, or accommodation ar of any or all of the Indebtedness, Guaranty* The word "Guaranty" means the guaranty from Guarantor to Lender, inclu rin ithout limitation �guaranty Notes. � � 1' all �r part �� the Hazaridous Substances, The words `Hazardous Substancesn mean materials that, booziuse of their quantity, concentration o�` physical, chemical or Infectious characteristics, may cause or pose a rnHazardous esent or potential hazard to hump The words healthrthe nrrr�nn W used, treated, stored, disposed of, generated, manufactured, transported or otherwise handled, Substances are used 'in their very broadest sense and include withofit limitation any and all hazardous or toxicF waste a s defined by or Hated under the Environmental Laws. The term n H a zar dou s Substances" also includes, without limitatolon, petroleum and petroleum b -produeis or any fraction thereof and asbestos. Improvements. The word "Improvements" means all existing and future 'improvements, buildings, structures, Real Property, facilities, addidons# replacements and other construction o n the Real Property. Indebtedness. The word "Indebtedness" means all principal, interest, and other amounts costs and expenses payable under the Note or Ral ated Documents, together with a l r renewals of, extensions of, modifications o f consolidations of and substitutions for the Note or Related Documents and any amounts expended or advanced by Lender to discharge Grantor' obligations � or experises incurred by Trustee or Lender to enforce Grantor's obligations under this Deed of Trust, t, t ether with interest o n such h a rn o � � n tas p rovtde d in i s Deed o f Trust. Specifically{ Without limitation, Indebtedness includes all amounts that may be indirectly secured provision of this Deed of Trust. + Lease. The word "Lease" means the lease o f the Property dated M17, 2005, between CITY OF MERIDIAN, Landlord and Grantor. Lender. The word "Leader" means IDAHO INDEPENDENT BANK, , eta successors and asst n s* Note. The word "Note" means th a promissory note dated May 17, 2006, in the o riin al prin cipal amo unt o f $ 649,7 59.84 from Grantor to Lender,, together with all renewals of, eaten s tons of + mo d i f i� �� M �� � � f ���i r� � n ire � �� � �� � �1 i�� i + # i bion of + and u b s tRutron for the promissory rote or agreement. NOTICS TO GRANTOR.: THE NOTE CONTAINS A VARIABLE INE T RMT RATE. Personal Property. The words "Personal Prnperty" mean allui meat, fixtures, and other article � � � 1~ � �rs err aI property now or hereafter owned byGrantor, and now orhereafter attached or affixed to the Real Property -11 t� ether th a I I a c c es s ior . n , p ts, and additions to, all replacements of., and all substitutions for, any of such property and together with a I I proceeds in cl u di b ng wibthout limitation'insurance proceeds and refunds of pre iu m s) from any sale or other disposition of the Property. Pra pe * The word "Property" means collectively the Real Property and the Personal Property. Real Property. Tie words "Real Property" mean the real property, Interests and rights, as further described � � Mn this Deed of Trust. Related Documents; The words "Related Documents" irisin all promissory notes credit agreements, loan agreements, agreements, guaranties, s e c u r i agreements, morigages+ deeds of trust., security deeds., collateral mortgages, and all other instruments, agreements and documents, whether now or hereafter existing, e a Gu ted En connection with the Indebtedness. Fie nts. Th a or d "Rents" m sans a I I present and future rents R rave n u es, in c orne, issue royalties, pr o fit and cyt er benefifts derived the Pr op e rty. Tru ale e. The word "Trustee" means PIONEER TITLE COMPANY OF ADA COUNTY, hose address is 8151 W, RIFLEMAN AVENUE, BOISE, ID 8 704 and any substitute or successor trustees i Loan No,: 5590258 DEED OF TRUST (Continued) Page 7 EACH GRANTOR ACKNOWLEDGES HAVING READ ALL THE PROVISIONS OF'' THIS DEED OF TFtUST, AND EACH GRANTOR AGREES TO ITS TERMS. R N TOR E LAKEVIEW MERIDIAN INVESTORSi, LLC OAAS LANE, LLC, Member of LAiEVaEW MERIDIAN INVESTORS, LL WHITEROCK lNV1ESTPENTS%.,LLC, Member of OAAS LA► E11. LLC By: lw'707 T. INVS LANEYLAND By: Z; I R, R ,, DAVIS By: TS,LL�an��rof ER0CK Member of OARS LA 5 Y, L L C Oenl'ral'Partner of LAEYl.ND f LAKEVIEW MERIDIAN INVESTORS., LLC PROPERTIES., INC, R tR . DAVIS B YA RICHARD Rt DAI PROPERTIES, INC, STATE OF COUNTY 0 LIMITED LIABILITY COMPANY ACKNOlu DaKENIM _ _ ," � -„,_ KIMBERLY CLARKE f Notary Public f ss State of Idaho 1 _ L On th i u day o f Mn the year 0 + before e a notary A,aneral a In and for th a tate of Idaho, p arson all a ppeare d T. ERI OARSffan a ge r of H IT E R O C INVESTMENTS, LL and TE ED LANE Parte er of L A N EYLAN D L* P* and RICHARD R. DAVIS, President of RA, DAVIS PROPERTIES, INC k or 'I'dentified to ma (or proved to me on the oath of _ � � to be m embers or designated a n t s i II ' ad liability company of LAKEVIEW MERIDIAN INVESTORS, LLC, and the members or designated agents who su bscrib id li ' ed I+ 'llt company name to the foregoing instrument, and acknowledged to me that they executed the same in said limitedI iabilfty m ny e Notary Public M y co mml G Sion expire 5 Residing at CORPORATE ACKNOWLEDGMENT TATE OF Ve4 0 0 } )SS COUNTY OF &47.04 � beforeOn this day of M I+y in the year 20 49 m L0 a notary public in and for the State of Idaho, personally appeared RICHARD R. DAVIS. President of R, R , DAMS PROPERTIES,, INC,,, known or identif led to me (or proved to me on the oath of ) r to be an authorized signer of R. DAVIS PR O PERTI , I N , , a corporation that executed the 'Instrument or the person who executed the din s tru m ent on beha f F of a a k e t such corporation executed the same). qr Residing at JV” (50pe t 0 C 011�c old. lV.q }To'sw," My commission expire amewrlowbW DEED OF TRUST Loan No: 5590256 (Continued) Page 8 REQUEST FOR FULL RECONVEYANCE {To be used only when obligations have been paid in fu 11) "i'o: , Trustee The undersigned is the legal owner and holder of SEI Indebtedness secured by this Deed of Trost. All sums secured by this Dead of Trust have been fully Paid and satisfied. You are hereby directed, upon payment to you of any sumsowing to you under the farms of this Deed of Trust or pursuant to any applicable statutet to cancer the Note secured by this Deed of Trust (which is delivered to you together with this Deed of Trust}, and to teconex without warranty, to the parties designated by the terms of this Deed of Trust, the estate now held by you under this deed of Frust. Pease mail the reconveyance and Berated Documents ta: 8 e n ef i cia r * . B ; Its, P"0 L o94 am. Vw 15.-31.W 004 Z600t. Honmd FwW gym% inc. 1913 ZMG. AN Faghto IMa wwwd. kD P- WAS L*XXM QM .A= TM- 16 PFt.14 FL F + 3 i F � rt 1P d - . F 'k d 4br # y EXHIBIT "A" This EXHIBIT "A" is attached to and by this referonce is mads a pert of the Deed of Trust, dated May 17, 2006, and exacuted in connection w[th a lawn at o#her flnancfai accomrnodad'ons between IDAH 0 1NbEPEN DEN T SA N K and LANCE tE1N iUIER1 DIAN lNVESTORS, LL ; and R, R, RAVES PROPERTIES, INC. PARCEL I parccl of land betng a portion of the West -half, Section 3, Township 3 North, Range I West, B oise Merid'W4 Meridian, S Ada County, Idaho and more particularly described as follows: Beginmng at. a brass rip marking the S ou theast rornexx of the Norffient quarter of S e tion 3, Tovmship 3 earth, Range I West, lois Mer*&an, Mcn"dian, Ada County, Idaho; Thmea along the SoulherX boundary ofsaid Northeast quartcr of Section 3, North 88 degree 55" West 2643,29 fw to a brass cap muldng the S outhwcst corner ofthe Northcast quarter. Thence teavir�g sa.id Southerly bounduy North 75 degrccs 30'00" West 194,00 feet to a 2" iron pipe; Thcace forth 40 dcgr= 00'00" West 40.00 feet to an iron pin; Thcnc,c S outh 75 degrcm x" West 78.x0 feet to an iron pm; Thence South 25 d= O4'40"+Vest b4.19 feet to an iron pin; naxce North $9 sego '5'Ob" West 2.54.51 acct to a point, said po'mt also being the rcW point of beginning; 'Fhenco confinuing North 89 d ream 25'06" fast 100.0 1 fret to a point; Thenot South 00 degr= 301 1" West 407-92 fm# to a point; Tbence South 68 dewces 54'11" Last 276.46 feet to a pant muking a point of curve; Thencc along a carve to the right 59.4b fu#, said curve having a cnt-al angle of 34 d&gr= 0410 "1 a radios of 100.00 feet, tangents of 30.64 fit and a long chard of 58.59 fed bearing South 51 degr= 5T0"East to a point marking a point of tangents; Thence South 34 degrees 5OtOV East 292.99 fact to a faint; Thence S outh 89 degrees 48'4 1" Fast 147.34 feet to a po*tntp Thcnce North 35 degrees 40"00" West r0 .03 Feet to a po'mt, lUnceNorth 5 1 degr=45'00" West 80.00 Led to iF pV4Ai4R 1c71GCNorth 00 CCC " St335.18f�1poml�0 �Of bCg�=W& PARCEL XI Aop'arccJ p#' land lying portions of the oulb Mf of the North If and the North half of the South half of S ec#inn 3, TownsMp 3 Nordi, Range 1 West, BMcn*dian., Mcriwdwtare, Ada County, Idaho and more particularly described as rollmsF B cting at a pint marking the NWhwest Lorna of the said ?earth half o#'the South halt of Section 3; Thence South 99 degrm 25V6" t 2'077.73 feet along the Northerly boundary of the said North half of the South half of Section 3 to a pent, also paid point bm',g the rest point of b�inni�g; 3'heaco South 0 degroo 2944' W 335. !8 feet to a point; Thence Lauth 51 degr= O" fast 580.00 feet to a point-, Thence South 35 deg= OOVO' Fist 28 5.33 fact to a point; 'ncnce South 22 deers 15,00" West 60.05 fejt to a pant; Thwcc South 43 degrees S8'10" Fast238.75sect to a poi n#; ThenceSouth degrees 00'00" East i I ODOO fit to a point, Thepce I�orth 6 ! degrc 00'00" fast 81-19 feet t� a ��in� of carve; Thence Norffiasterly along a cuE-ti►a to tho Ic#t 147.14 fca, said curve havi�g a central angCc of 48 degrm 10'28 ". a radius of 175,00 fect, tan cry#s of78. 3 few and a]ong chord of142.84 feet beuing North 36 dcgrm 54`46" est to apoint of ending 0f C11rYC; Thence North 56 degrees 30'4#l" West 15 1. 3 8 feCt to a point; Thence North 41 degrees 30'00" Wwt 203.92 feet to a pint; 'Y'hmcc North 17 degrccs 15'0 0" West 94.14 feet to a point; Thence North 2de rces 15'00" fast 147,04 feet to a port, ''hence North 65 dcgr 0'00" t 45.00 feet to a point; Thence South 8 7 degrees 20'00" fast 7 8.4Q feet to apoint; Thencz South 68 dcgrm 00'00 " Fast 6 I.48 foes to apoint; Thence South 71 deg= 3315" East 88.05 feet to a pain; Thcnre South 64 deme WOO" # 148.33 fact to a point of begmwg of ca.rvc; Thence Northeasterly along a cl#t"ve t4 the right 139.32 feet, said curve haV*mg a central angle of 65 degrees 3J'19", a radius of311495 feet, tangents of 70.84 fed and along chord of 138.16 feet bcar*mg N 56 degr= 12'24" Fmt to a point of tange,nt; . 'Ihcncc North 69 dcgrem 0 0"00" t 115.08 deet to a point of curve's Thence Norfficasterly along a curve to the ] cit 125-75 fad; said curvc having a ccntral angle of 24 degrccs 25' ", a radius of 295,00 leek, tangents o#' 63.84 fact and a long chord of 124, 8 (} feet bearing North SC degr= 7'!}" t to a point of ening o#`curwc-, Thence North 44 dcgr= f}0'44" Wcst 79.63 fay# to a po'mt; Thence forth 67 degr 45'00" West 160.00 acct to a point; Th ►cc South 65 d ro 4'00" West 24 4.67 feet to a pain; Thence 1`vior#h 50 degrees 30'0 0" West 114.35 fed to a port; Thence North 44 degees 00'00 " East 90. feet to a po'wt; . Tbence North 17 dc rces 4000" Wcst 175.. 00 f`ed to a paint; Thence forth 12 degr= 00'00* East 2$ 0.0 0 feet to a point; Thence North 77 dcgr= 30100" West 170.00 feet to a point-, . Thence Sou , 6 S deg= 00'00 " es# 265. 00 fed to a pact marlang the North=t-comer of the Southwest quarter of the said Section 3-1 Thence Nortb 75 dcgr 30"00" West 190.00 foes to a point-, Thence North 4 0 degr= 00'44" West 4 D.00 feet to a point; Thence South 75 deg= West 70. 40 fejt to a point; Thence South 25 dcgrm 00'80" West 64.19 fed to a point on the said Northerly boundary of the North haff of the South balf of Section . Th Forth 89 dcgm 254.51 sect along tht said Northerly boundmy of the North half ofthe South half of Soction 3 to the paint of bqinning, EXCEPT that portion [ging within to following subdivisions Char4y L,=e �Tillage 3 0. XSubdivit0q, saccordingfiled c� �hc p1�t thcrro� �n Baok 44 of P lats at Pages 3 5 37 and 3 5 3 8k , records of A4a County, Idaho; Loan leo: 55-90258 EXHIBIT ..A.. (Continued) Cherry Line Village No., 2 Subdivision, according to the plat thtreo� fited in 8ook4of Plaks at Pages 5791 and 3792, records of oda County, Idabo, The Lake at Cherry Lane, according to the pkat thereof filed in Book SZ of Mats at Pales 45 69 and 45 74, records of Ada County, Idaho; The Laky at C herr Lane No. 2, according to the plat thereof filed in Bork 54 0f P1a#s at Pages 48 92 and 4883, records of Ada County, Idaho-; The Lakc at Cherry Line No. 4 Subdivision, scordir� to #h plat thef-oaf, filedin Book 74 of`Plats at Pages 7674 and 7675, rwords of Ada County, Idaho., PARCEL ii , portion of #ht West half of Section 3,Tonshi� I�r�h, �tangc � 1tst, Boiso iv��ridia€�, h�ierid"M, Ada County, Idaho, mor<&. dmcribcd as fallows: . Commencing at the corner cornrnoa to Secti 4, 9, 10 and the said Section ; Thence North Q de re 38 '11"East 265 1. 19 fact to the quarter corner coannon to said Sections 3 and 4 as same way rmtablished by LS 972 (CP F INSTRUMENT NO. 7852146, records of Ada County, Idaho)* frim which the Northwest comer of said S ectioa 3 bars North 0 degree 3 8'27" East 269 7.49 feet; 'F7nence North 0 degree 38"27 H East 2.4 fed to a 5!8" iron pin; nence Sauddcgrm �$ I" Eas 379.5 3 fmt to the rctl point ofbcginaing; Thence continu ing S otttft 8 8 degrm 5 53 t" Fnt I8 2.65 feet to a point; Thence South 8 dcgr= 18'10" est 440.66 fwt to a point; Thence South if degrees 18'25" West 218,04 fit toa point; Thence North 89 degrce13'5 V East 54 0,22 feet to a point; . Thence North 71 dtgr= 4334" fast 442.46 deet to a pint; Thence North 10 dcgrces 33'50^ Past 4 87. 4 deet to a point Thencc South 88 degees 5 513 1" fast 1 4.54 fact to a pain; 7�`hetir oath 50 dcgrccs 38' " East 89.99 frit �o OL pont; Thence !X5.3 3 fed along the axe of a cu rve to the right, havixig a radius of 250.25 feed, a ccntrai angle of 37 degrees 5 IT 8" d a long chofd benIng ou#]t 31 degms 4252' East 162.34 feet to a gout; Thcace North 89 degrem 29`44" West 120.24 fact to a pint; Thence South 4 degee 27'17" East 8030 fed t6a pomt& Thence Sou#h 0 degae 3 0' 016" Vest 23 0.52 feet to a point; Thence Boutin lU degrees 3 1' x" Wast 123 P 5 1 feet to a point; Thence Saute 94 degrees x4'07" West 119,5 7 feet to a po&mt-1 ?hence Saud 50 degrees 50'29" West 1343 9 #'cct to a point; 'Thence South ?I degces 8"8"West120.64 feet to a pol n# 'fence South 82 deer 45'52" West 225.84 fact to a point; Thence South 89 degrees 0 '5 7" west 67* 30,fwt to apoinr Thence Souk 89 degr= 02"57" West X7.30 feet to a point:, . Thence North 89 degrem 104 1 " West $25.06 feet to a point; Thence North 77 degrees 292 0" West 148.07 feet to a pont; Thence North 89 der 10`4 1" West 10.40 feet to a point lying fwt t of the West boundary of said S ectian 3; ettce along a line 65.00 feet East of'and parallel to the West boundary ofsa'td Section 3 Forth 0 degx= 38'11 " East 247,64 feet to a poi#; 'Phar. ce Sou th 8 9 degi-ces 2 F4 9" EAST 1 6.03 F `Y' TO A PT; Thence North 45 degrees 03'i6" East 163. 61 feet to a paint; ThenccAiorth 5 degrees 39'1" East 5 02 *42 f tothe point ofbcginMing. PAROL III.,B A portion of the West half of Scction 3, Ta;vnship 3 Norffi, Mange 1 West, Bodise Meridian, Meridian,- Ada County, Idaho, morc p art'cu larly described as follows : Commenc'wg at the comer common to Sections 4, 9, 10 and thi: SM'd Section 3; Thence North 0 dcgree 3 8'11 " Past 265 1.19 feet to the quarter corner cornman to said Scctions 3 and 4 as 5arnc was eemtablishcd by LS 97 ( P & F In,stnment ATo. 7852146, records of Ada County, Idaho); frosn which the Northwest corner ofsaid SecUon 3 bears North 4 degree 38'27" Fast 2697.49 fcet; Thenco North 0 degree 38"27" Fast 22.64 fed to a 51$" iron din; . Thence South 8 8 degrees 5613 1" East 19 77.72 feet to a 51$" won pin and the rel point of beg'j'nning; Th=c South 0 degee 30115" West 413.59 feet to a point; 'fbe, e worth 68 degr= 5411 I'm West 2 6.71 feet to a point; Tbcnce North 6 $ dcgee54'1 I" NVcst 2 6,71 feet to a point; Thence Norffi 0 dcgrc 30'15" Easy 217.93 feet to a point; Thence 211.88 feet Tong the arc of a curvy to the left, hav'mg a radius of 249.75 Feet, 2► -central angle of 48 degrees 36'25" and a long chord bearing North 23 degr= 47'57" west 205.59 feet to a point; Thence S outh 8 8 drers 553 t " East 10 9,62 feet to the point of begu=g- PARCEL I�A A portion of the S authwcst quarter of the Northwest quarter of Section 3, To%vnship 3 NoTth, Range 1 West, Boisc Meridian, McridianF oda County, Idaho, more particutarly described as follows: Cofnmencing at the comer common to Secfions 4, 9, 10 and the said Section 3@ - Thence orth 0 degree 3 8 111 " Fmut� 2 651,19 feet 10 tho quer comer common to Said S ection 3 and 4 as same was rees tablisbod by LS 972 P & F Emtm ment No. 7 852146, records of Ada Cou nty, Iftho); fromh'Mh the Norbvest mm-er of s did Section 3 b= North 0 dwee 3827" fit, 2697,49 fmtap enNorth 0 degree 3 827" t 22.64 fwt to a 5/8"'iron pig} Thenco South 8 8 dev= 55'31 " East# 3 7 9,5 3 fed to the rtal p o1nt of b eginmng Thence North 5 degee 39+3 1 fit# 290,28 fed to a point - Thence 4 6,45 feet along the arr, of a -non-tangent curve to the right, bavmg a radius of 250.00 & t a mitral angle of 10 deg= 3846", and a long chord bang South 49 degrees 22143" eta 46,39 fed to a pointq, Thence South 44 dr 030" East, 136.41 feet to a point; Thence S oath 8 deg I T1. 0" Eut, 165.80 fmt to a Pt Thence North 8 8 diem 553 1" West} 182.65 f to the p6int of b q' %eg==91 q Page 2 Loan leo: 5590258 EXHIBIT "A" • (Continued) PARCEL IPV,,B Portion of G ovc=cat Lot 4 and the Southwest quarter of the Northwest quarter ofSecfion 3, Totvnship 3 North, Range IWest, B�is� I er���an, Meridian, Ada Caunty, Idaho mors particularly ��s�ribe� �s foltows: _Commencing at the, comer carnrnon to Sectiar�s 4, 9, 14 and the said Sec#ian 3; Thencz Norffi 4 degee 3East, 2651.19 feet to the quarter cornu common to said Section 3 and 4 as game was r recstabIishtc# by LS 972 (C? & F Imftument'o. 7$14 6, records of Ada County, Idaho), from Mric[x theWorthtvcst - • comer of said Secfion 3 be= Narty 0 degee 3877" 7" Easto 2697,49 fojt; Thence North 0 degree 3 8'27" East 22.64 fcet to a X18" i.ron PM; Thence South 8 8 d-cgr= SY3 1 " fast, 834.71 feet to a point. Thence North I degco 0429" Fes. 77.4.5 feed to the ref podmt of beg�nnin ; c.ncc 1 1 feet along the arc of curve to the n"ght having a raditis of 270.00 feet, a central ale of 42 degrees 17"4 1„ and a hong chord bear'mg North 65 dW= 12'1 V Wes( 194.81 feet to a point; Tlhence forth 44 dcgrew 03"20" West, 1.0fit to a point; Thence North 3 7 degree 3 8"0 " Fnt, 125. N feet to a po i; Thenoe North 4 dW= 2670" Wcs� 178.94 feet to a p oints- Thencc North 49 degro= 13'43' West, 619. 1$fee# to a poit; Thence I ortb 89 deWces 2 I'33" Wept, 39,72 foet to a point; Thence North 0 degree 3877' East, 178.61 feet to a point* Thenco South S 9 degm 2 1'33" East, I 04,94 fed t0 a pow; Thence North 26 dtV= 46155" Eiut., X 63.73 fad to a point; Thence North 1 3 dept s 05'08" Fast,186.18 poet to a gotnt; Ilenceyouthdeg= � 23'U4" Fast, 22E.3 7 fed to apo�nt; Thence South 0 devet 6'56" West, 3 G.. 00 feet to a paint; Thcnce North 89 degr= 23'04" Vacs#, 114.4 3 feet to a point; Thence South 10 dcgr= 38'i V WW, 16 2.48 ket to a pint; Thence South 5 dW= 36'0 " Buto 160.95 feet to a point, Thence South 48 dW= ' 5R WCC! 66.41 ft0 S polilt; Thence South 10 de mes 49'04' West, 123.62 deet to a port; 'i'hcnce South 12 degrees 410`00" fit, $5.00 t'cet to a port, Thence South 53 degr= 267 1" t, 142,60 fmt to a POW; Thencc South 6 deg= 5 VS V VYmt* 151,05 fact to a po'nt-F ncnce Siouth 41 degrees 1414" Fit, 171.06 fcd to a point; Thrnce South 89 deg= 1 East, 122.33 feet to a paint; Thence youth 43 degr= 43'0S" East, 60.00 feet to apoint; Thence S auth 0 degroe 3 615" West, 671,5 0 fejt to the paint of beginning.. PARCEL IVoC porflon of c Northwest quarter o#' Suction 3, Township Worth, Range. ! West, Bo�sa 11�aidian, Mrridian, Ada County, Idaho, more par#icufarldescribed as foltaw�. Commencing at the corner connnnon to Sections 4, 91 11D and the sau'd Section ; Thence North 0 degrec 38"1V to 2651.19 f to the qua.rtex comer co=on to said octiorLs 3 and 4 asame was r"stabEishod by LS 97 P & F InStrumcntNo. 785 2146, records of Ada County, Idaho); from wIaich the Northwest corner of said S c tion 3 burs North 0 dwce 3827 " Fast, 2697,49 fcet; Thence North 0 dwee 38' 7" Fast 22.64 foct te a X18" iron pin; . Thcnw S $ 8 dTm 5511" Eut, 1794.61 fe#t0 apo1l1tt Thence North i degree 04'29" F. -W, 3 03.15 fact to the real point of bcgirtn'mg; Thence North 66 `40" Voest, 157.70 feet to a paint, Thence North 56 degrm 5639" Wcs� 717.37 fact to a po*mt, Thence North 89 degr= 23`44" We36.12fect to a point; Thence North 0 deUce. 36`2$" Fist, 5,00 foct to a Point; T[�c�n 154,5few along chc aangent curve to the le rc of a non-4ft, hL�►io� a rads �f �25.Q4 fact, a central angle; of 3� dcgrm 22'00" and a long chard bearing North I9 degrees 04%" wept, l 1. 7 fW to a point; Thence North 3 8 dcgraw 4545" Vest, 39.U0 feet to a point; Thence North 5 t degE= X4'IS" est, 110,00 feet to a paint; 'Y`hencNorth 26 dcgrm 1 V3 West, 134.78 feet to a point; Thence North degrm 0'24" West, 277.45 deet to a point, Thence North 31 dere A6'35" West, 24I.56 feet to a pont; . Thence North 0 degree 36'56" Past, 132.59 fed to a po'Mt; Thence Forth 8 9 dam= 2 3'04" Wes t, I 1 0.00 feet to a pont; Ti hcnco North (} degirec 36 " t, 30.40 feet to a pomt; Thence South 89 dcgr= 3'D4" East, -175,94 feet to a pain; Thcnce South 78 deg= 05'29" Easy, 71.13 fit to a pnitr ThenceSouth 3 degr= 13116" East,65-434 fit t� a �oir�t; Thence Guth � degrm 2$'32" fast, 79, 7 fe��t to ap�in�; ih�nr,� auth 53 degrees � '� " ,est.6.07 f to agoi��; . Thence South 42 degr= 3 V1 " 70.53 fftt to a point; Thmc� Saute 3� dcg�crEast, 77.08 feet to a point; Thence ou degees 49'06" Eut3p 249.89 feet to a point; Thence South 8 dcgrm 1 "07" Emt, 125.42 fact to a point; . 71enyouth 13 dwos 5620" East, 266.06 feed to a point; Thence S outh 42 dcgrcc 4329" E= tp 283.7 feet to apaint; '1'3ienca North 61 duras 'I3" est. 165.37 feet to a point; Thence North 1 I deVc 00'4Z" West, 399.24 feet to a paint; TIhenco S outb 89 degrees 18'49" East, 398.40 feat to a point; Ilerics youth 7tier s O '!5" East, 6i.16 fct# to a point; Thence South 60 degr= 40'15" East, 164.39 feet to apo'mt; Thence South 85 degrees iO'I8" Fast, 136.30 feet to a point; Thence opt 0 degoe 3 01 " West, 235.9 3 feet to a point; Thence Norffi 89 deg= 29"4 " West, 80. 00 fejt to a pint; Then= South 78 dorm 3349" West, 1.71 fwt to a point; Thence South I I deg= 4515" West, 185.77 feet to a point; Thence South 0 degree 30'l 5" Wcst, 154. 10 fact to a poinE; Thence 288.86 fo:t along the are of a non -tangent curve to the 1cft, having a radius of 425,00 fit, a cwtralangl0f 38 de r= 563 1 ", and a long chord bmr�ng youth 63 dcgrcw 04'11 " west, 28 3.33 feet to the po'mt of brginnin . Page 3 Loan No: 5590258 EXHIBIT "A" (Continued) ]PARCEL I -D A portion of the Southeast quarter of'the Northwest quarter of Section 3, Tovnsh'r� 3 Nort14 Range t West, poise Meridian, Merid" ,Ada Jaunty! J&ho, more particularly described as follows: Page 4 omt3n�eing at the ooj common to S mflons 4, 9, 10 and the said S ection 3; 'i`€iencc North U degree $1 V Eas, 2651.19 fed to the qu atcx corner con to sawid Sections 3 and 4 as same was r,stablished by I..S 972 P & R FnstrurnantTo. 7852146, records of Ada County, Idaho); from %vMch teNorftvest cornu of said S cction 3 bmm N 0 degree 38 2 7" fast, 2697,49 feet; Thence North 4 degree X8`27" East 22.64 feet to a 518 " iron pin; Thenco Lauth 88 degrees 55"3 1" t, 1614.53 fmt to the real po'mt of b c9inng; F. Thence North 10 de9ces 33'0" Ea.s� 72.37 fact to apoint; PARCEL TV.,E A portion of the Soudmg quarter of the Ncohwest quader of Section 3, Townsh'IP 3 North, RanI West, Boise Meridian F exxd'an, Ada County, Idaho, mope particularly dcscribad as fo1lm: COJ=Mcing at the comer cornrnon to S ccfsor:s d, g, 10 and the said S mflon 3; 11-encc North 0 dcgrcc 3 811" East, 2651.19 feat to the quarter carncx Gammon to said Secfions 3 and 4 as sante was resstablisbcd by LS 972 ( P & F kstrument No, 7952146:, records of Ada County, Idaho); from which the Northwest oornaofsaid faction 3 btars North devcc387?k Ents 467 7.Q 7 iCGty Thence N"th 0 dcgree X8 27" est 22.64 feet to a 518" irOn pin; . ''hence Saute 88 dew= 55'31 1977.72 #'eet to a X18" user pin and the real poi]Dt ofBc Tlim=North 8 8deg= i rt 109.62 fad to a poinpoint;guufflig; . Tb=c 11.06 fit along the are of a -#=,gat terve to tete left, having a radios of 24935 fat, a r.xntral angle of 2 &gm 3 '! 6wp and a hong chord bearing North 49 &gr= 22'17 " c. , 11, 06 fMet to a paint; Thence North 50 dcgE= 3 8'251 Wcst 94.32 fact to a paint; Thence 60.45 font alongthe arc Ufa cmc to the 1cf�having � pus of 680.00 pert, a central ang1c of degccs 05'36":', and a long chord bcamg North 53 dcgr= 11'13' est, 60.43 fat to a point Thmm 30.13 f#along the arc of a curve to the ri� havmg a radius of 20.00 fed, a tetral ang1c of 8 6 dcgrccs f V50", d a long chord big North 12 deg= 3V36" West,7.36 fact to s point; Thence North 30 dcgr= 34'50" List, 84.13 acct to a point; Thcnoe 269-37 feet along the are of cvrva to the 6ghk wing a radips of 37 , 4 fac,#p �► ntral angle of 41 d�c�.s 13'04". and a hong c1ord b� ?w10 � � �cgr s t 1�1" Eas#, 263.9 9 ftd to a paint; ncnce South 0 degee 30'15 R 1 .89 fact to tha goW of b cgumin& PARCEI, V Lots 1 and 52 in Block 5, and Lot I l in Block 9 of Charry Land Village No. I Subdivision, according to the plat thaeo£ filed in Book 44 of Plats at Pages 3537 thru 3538, rxords of Ada County, Idaho.. PARCEL VI Lds 1and I in Block 9 end W 4 � Block 1 z and ion 3 in Block5oChOV arkVUlageLNo., 2 ubd�visi , 2(=ding to the plat therco filed iu hook 46 of Plats at Pagcs 3791 and 3792, ro=ds of Ada bounty, Idabo. PARCEL VJJ €+o# 83 in Block 5 and Lot i4, in Block 13 Cherry Lam Village No. 3 Subdimlon3=rding to the official pkat thereof filed in Book 58 of Plats at Pages 5473 th-u 5475, rawnis ofAda County, PARCEL VIII Lot 2$ ire 1B lock I I aM Lot 3 9 in Block 13 Chcrry Lane Wlage Na. 4 Sub&isdion acmdin,g to the official plat therwf filled in 130ok 63 of Plat$ at Page 6376 and 637?, records of Ada County, Idaho. PARCEL 13{ Lot 9 in B1ock I of Rocord Of Survey► No., 8Q2 of ad justod 10t I LnOS for Lots S, 9 and. 10, FM flock i of"F'he Lakz at Chcrq Lane, according to the plat thrrcof! firled in Book 52 of Ptah at Pages 4569 and 4570, records of Ada Cmnty, Idaho. EXCEPT that portion lying l in the orig Lot 8. Lot B1oC1c t and W 13 iso Block 2., The Lake at Cherry Lww Air., ac=ding to tl plat #�tcxr�of, filed ixt Hoot 54 0f P103 at Pages 4 & 92 and 49 93, r000rds of Ada County, a PARCEL X1 Lot 24 in Block 2 of The Laky atCherry Lane No. 3 S ubdivisioa according to ihe official plat theroo f died iso Beak 74 of Plays at Fagg 7167 and 7169, records of Ada County, Idaho. PARCEL ILII Lot 19in Block l and Lot 46 in Block 2 of The Cake at Cherry Lane t3o. 4 S ubdivision, according to the official plat thereof, filed in Book 74 of Pats at Page 7674 and 7675, records of Ada County, Idaho. EXHIBIT "All Lom No: 5590258 (Continued)Page THIS EXHIBIT RfKTM IS EXECUTED ON A 17,2006-h GRANTOR: LAKEVIEW MERIDIAN IN1lETOR, LL OARS LANEY, LLC, Member of LAKEVIEW MERIDIANINVESTORS, LLC WHITEROCK INVESTME 0, Member of OAAS LANEY, LLO 40 r sylb dNpA-6EAFHWyWFj"ff. - '% 'i`, ER a E o WHITE1��� IN1lES E LAN E L N D ember of OAA AN E, LLC Ar. B + E LANE�7v arta a f c f LA L I R,R. DAVIS P ERTIES., FueRT� RD R D AVI S PROPERTIES, INC. Amb o AKEVIEW MERIDIAN INVESTORS, LL ant of R.R. DAVIS R P.R., CLAVI P RTS E, I N d, B y& ISIARD Rh D A VI a nt of Ft. R., D AMS PROPERTIES, INC, LAM M0 L it. Vmr. 9, 11, 01004 Corr. HK LW4 Frwin" ffawgan op V%c,, s 20, 2OW, An FisDh%i f1*4 wyed. * 0 PVAAALN VWER OW P T047ULPLUM f -C TL -9214 P9+14 l May 12, 2006 MERIDIAN CITY COUNCIL MEETING May 16, 2006 APPLICANT ITEM NO. 10 REQUEST Request for a Waiver of the First Year Lease Payment Obligation Pursuant to the Lease Agreement for Lakeview Meridian Golf Club: AGENCY COMMENTS CITY CLERK: See attached CITY ENGINEER: CITY PLANNING DIRECTOR: CITY ATTORNEY CITY POLICE DEPT: CITY FIRE DEPT: CITY BUILDING DEPT: CITY WATER DEPT: CITY SEWER DEPT: CITY PARKS DEPT: 0 MERIDIAN SCHOOL DISTRICT: 3J ADA COUNTY HIGHWAY DISTRICT: SANITARY SERVICE COMPANY CENTRAL DISTRICT HEALTH: NAMPA MERIDIAN IRRIGATION: SETTLERS IRRIGATION: IDAHO POWER: US WEST: INTERMOUNTAIN GAS: MERIDIAN POST OFFICE: OTHER: Contacted: Emailed: Date: Phone: Staff Initials: Materials presented at public meetings shall become property of the City of Meridian. OARS LAN EYLLC May 1, 2006 Mayor Tammy de Weerd Council President Shaun Wardle Meridian City Council City of Meridian Meridian, Idaho 83642 Dear Mayor de Weerd and Council President Wardle, MAY -- 8 2006 City of Meridian City Clerk Office Thank you for allowing us to present a progress update on the Lakeview Meridian Golf Club. As you certainly gathered from the information, we are very excited about the progress we have made in our first year of operation. We appreciate your confidence and look forward to a mutually beneficial long term relationship with the City of Meridian. Needless to say, we have made substantial capital improvements this year and although the pace of future upgrades is likely to be a bit less aggressive, much more is coming. Accordingly, we are formally requesting a waiver of the first year lease payment obligation pursuant to the lease agreement. Again, thank you for your support and we hope that you areas pleased as we are with our progress on this crown jewel of Meridian. We look forward ,to having you visit the course facility for a walk through and will look to schedule this in the next several weeks. Very truly yours, Dick Davis Lakeview Meridian o ub P.O. Box 2020 • Boise, Idaho 83701 Ph. (208) 429-9596 • Facsimile (208) 429-9597 0 April 21, 2006 MERIDIAN CITY COUNCIL MEETING April 25, 2006 APPLICANT ITEM NO. 3 REQUEST Lakeview Golf Course Lease Agreement Extension AGENCY COMMENTS CITY CLERK: CITY ENGINEER: CITY PLANNING DIRECTOR: CITY ATTORNEY CITY POLICE DEPT: CITY FIRE DEPT: CITY BUILDING DEPT: CITY WATER DEPT: CITY SEWER DEPT: CITY PARKS DEPT: MERIDIAN SCHOOL DISTRICT: ADA COUNTY HIGHWAY DISTRICT: SANITARY SERVICE COMPANY CENTRAL DISTRICT HEALTH: NAMPA MERIDIAN IRRIGATION: SETTLERS IRRIGATION: IDAHO POWER: US WEST: INTERMOUNTAIN GAS: MERIDIAN POST OFFICE: OTHER: Contacted: See attached Date: Phone: Emailed:. Staff Initials: Materials presented at public meetings shall become property of the City of Meridian. _z'_ . - r Tara Green From: Ted Baird Sent: Tuesday, April 18, 2006 3:45 PM To: Bill Nary Cc: Will Berg; Tara Green Subject: FW: Current financial model for LakeView Meridian Follow Up Flag: Follow up Flag Status: Green Attachments: Lease Extension Model 10.5.05.xis This is on the Precouncil agenda for next week. It pertains to an upcoming amendment to the Golf Course Lease to firm -up the terms of the second 30 -year lease period. From: Kelly Fuller [mailto:kelly@oaaslaney.com] Sent: Friday, December 23, 2005 9:42 AM To: Ted Baird; Kim Clarke Cc: T. Erik Oaas Subject: Current financial model for LakeView Meridian Ted, Here is the most recent financial model. You will probably want to print the tabs `Assumptions' and 'Summary' only. (The tab 'Model' shows all years and the `Summary' tab rolls the years into 5 year increments to make it more readable.) Kim, Please print the first two tabs for Erik. Thanks, Kelly Fuller 4/21/2006 OAAL44LS IIIII LAN Er February 15, 2006 Councilman Shaun Wardle President, Meridian City Council City Hall Meridian, Idaho 83651 Dear Councilman Wardle, ,_. t f y ;A E, `,lark 0f c We are pleased to be invited to the City Council to provide you a status update and present our plans for the LakeView Meridian Golf Club. Additionally, as promised we have prepared a proposal for the 30 year extension to the lease executed last fall. First, the lease extension proposal incorporates the concept that the City of Meridian ought to be compensated for its ownership of the course based on the revenues earned at Lakeview Meridian Golf Club. There is a simple formula for calculating the amount earned by using a fixed percentage of each revenue component, (i.e. green fees, cart rental, food and beverage and pro shop), summing all four component amounts and comparing that total to a guaranteed minimum payment. The City will realize the larger of the two amounts from its investment subject only to a deduction for capital improvements (i.e. allocation of 25% of total eligible expenditures). The plan summary is attached. Second, we are pleased to tell you about all the exciting and positive changes we have made to the Clubhouse, and the status of the Maintenance Building as well as the planned site improvements. A site drawing is attached. Finally, we have exciting plans for the first three hole improvements to be undertaken this year. We will begin reconstructing the greens on holes 1, 6 and 7 and installing other necessary changes as soon as the weather allows. The drawings showing the proposed changes to each hole are attached. Thank you again for your support, we hope the City of Meridian is pleased with our progress to date and we look forward to the exciting things to come at Lakeview Meridian Golf Club. V truly ours, 'char avis *Lakeeridian Golf Club C P.O. Box 2020 • Boise, Idaho 83701 Ph. (208) 429-9596 • Facsimile (208) 429-9597 Oaas Laney LakeView Meridian Golf Course Lease Analysis — Assumptions February 15, 2006 Minimum Payment to City (Years 2035 — 2065) Minimum lease rate beginning in 2035 is $100,000 per year Minimum lease rate beginning in 2045 is $150,000 per year Minimum lease rate beginning in 2055 is $200,000 per year Alternative Minimum Payment Calculation Revenue Source (A) * Revenue Multiplier (B) = Gross Lease Amount Greens Fees 5.0% Golf Carts 4.5% Food & Beverage 2.5% Pro Shop 1.0% The City of Meridian will contribute 25% of Capital Improvement expenditures beginning in 2035. Capital expenditures that are eligible for the City's contribution allocation will include; course repair, hole redesign, irrigation, golf carts and other maintenance equipment, pressure washer, drill seeder, maintenance facility and other similar items. 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