Community State Bank of Canton v. Mary E. Stewart

IN THE DISTRICT COURT SITTING IN AND FOR WOODS COUNTY, STATE OF OKLAHOMA COMMUNITY STATE BANK OF CANTON, ) ) ) ) ) vs. ) ) ) ) MARY E. STEWART, individually and as Personal Representative of the Estate of CHARLES W. STEWART, deceased; The Unknown Heirs, Successors, and Assigns, direct or remote, if any, of CHARLES W. STEWART, deceased; Defendants. Case No. CJ-2024-21 PETITION COMES NOW the Plaintiff, Community State Bank of Canton ("Plaintiff"), and for its cause of action against said Defendants, Mary E. Stewart, individually and as Personal Representative of the Estate of Charles W. Stewart, deceased, and the Unknown Heirs, Successors, and Assigns, direct or remote, if any, of Charles W. Stewart, deceased ("Defendants"), would allege, aver, and respectfully show the Court as follows: 1. Community State Bank of Canton is now and was at all times hereinafter mentioned a duly chartered, organized, and existing Oklahoma banking corporation authorized to bring this action, located in Blaine County, Oklahoma. The loan documents in question were executed in Blaine County, covering real property located in Woods County and Alfalfa County. 2. Defendant Mary E. Stewart ("Mrs. Stewart") is a resident of Woods County, Oklahoma. 3. Mrs. Stewart was appointed Personal Representative of the Estate of Charles W. Stewart ("Mr. Stewart"), deceased, in Woods County Case No. PB-2022-49 ("Probate Matter"). At the time of Mr. Stewart’s death, he was a resident of Woods County, Oklahoma. 4. Pursuant to 12 O.S. § 2004, service by publication of the Unknown Heirs, Successors, and Assigns, direct or remote, if any, of Charles W. Stewart is appropriate. 5. The real properties which are the subject of this action are located in Woods County, Oklahoma and in Alfalfa County, Oklahoma. 6. Venue is proper in Woods County pursuant to 12 O.S. §§ 142. 7. The Court has jurisdiction over this case pursuant to 20 O.S. §§ 91.1 et seq. First Cause of Action – Foreclosure of Real Property (Note and Mortgage 1) 8. That on July 17, 2020, Mr. and Mrs. Stewart, for good and valuable consideration, made, executed, and delivered to Community State Bank of Canton, their certain Promissory Note ("Note") for the principal sum of $1,011,059.73, with initial interest thereon at the rate of 6.000% per annum, and with a maturity date of July 17, 2025. A true and correct copy of the Note is attached hereto as Exhibit A. 9. That on the same date and as part of the same transaction and in order to secure the payment of the Note and the indebtedness evidenced thereby, Mr. Stewart and Mrs. Stewart, made, executed, and delivered to Community State Bank of Canton their Mortgage, which was a real estate mortgage with power of sale ("Mortgage 1"), granting a first mortgage lien in and to the real property and premises situated in Woods County, Oklahoma (hereafter the "Property 1"), to-wit: The East Half of the Northeast Quarter (E/2 NE/4) of Section Thirty-five (35), in Township Twenty-four (24) North, Range Thirteen (13) West of the Indian Meridian, Woods County, Oklahoma, LESS AND EXCEPT all oil, gas and other minerals. (Property address: 7891 CR 500, Aline, OK 73716) That said Mortgage 1 was duly executed and acknowledged according to law on July 17, 2020, and was recorded on July 22, 2020, in Book 1306, Page 1086 in the records of the Woods County Clerk. A true and correct copy of said Mortgage is attached hereto as Exhibit B. 10. That Defendants have defaulted on the Note for the reason that Defendants have failed to make payments according to the Note and Mr. Stewart is deceased. The Note default also constitutes a default under Mortgage 1 securing the same and pursuant to the terms thereof. That Community State Bank of Canton is therefore accelerating the terms of the Note and Mortgage 1 and declaring the whole of said indebtedness due and payable. 11. That the Note and the Mortgage 1 provide that in case of a foreclosure of said mortgage(s) and as often as any action may be taken to foreclose the same, the Mortgagor shall pay the costs of collection, abstracting, title reports, and attorney fees, to the extent allowed under the law, in addition to other sums due, which shall be secured by this Mortgage 1. 12. That said Mortgage 1 held by Community State Bank of Canton specifically provides that appraisement of said premises is expressly waived or not waived at the sole option of the Mortgagee and that such option shall be exercised at the time judgment is rendered in any judicial foreclosure or at any time prior to the same. 13. That Community State Bank of Canton has complied with all of the terms, conditions, and provisions of the Note and Mortgage 1, and as such is empowered to bring this suit, foreclose Mortgage 1, and have Property 1 sold to satisfy the indebtedness. Community State Bank of Canton states that any right, title, or interest claimed by Defendants in or to Property 1 which secures the Note and Mortgage 1 is inferior and subordinate to the mortgage lien claimed by Community State Bank of Canton. 14. That Defendants are the present record owners of Property 1. 15. That Defendants are personally obligated on the Note herein sued upon. 16. That after allowing all just credits, as of June 18, 2024, there is due to Community State Bank of Canton on the Note and Mortgage 1, the principal sum of $620,778.03, plus accrued interest and late fees in the amount of $183,586.99, for a total payoff amount of $804,365.02, together with interest accruing thereon pursuant to the contract rate, all expenses advanced on behalf of these parties, reasonable attorney’s fees, court costs, and the costs of collection accrued and accruing, for which Mortgage 1 is a first and prior lien upon the real property and premises described hereinabove. WHEREFORE, Community State Bank of Canton prays for judgment in rem and in personam against Defendant Mary E. Stewart, individually and as Personal Representative of the Estate of Charles W. Stewart, deceased, and the Unknown Heirs, Successors, and Assigns, direct or remote, if any, of Charles W. Stewart, deceased, in the principal sum of $620,778.03, plus accrued interest and late fees in the amount of $183,586.99, for a total payoff amount of $804,365.02, as of June 18, 2024, together with interest accruing thereon pursuant to the contractual rate, all expenses advanced on behalf of these parties, reasonable attorney’s fees, court costs, and the costs of collection accrued and accruing, for which Mortgage 1 is a first and prior lien upon the real property and premises described hereinabove; further ordering that said real and personal property be sold to satisfy the lien of Plaintiff and for such other relief that the Court deems just and proper. Second Cause of Action – Foreclosure of Real Property (Note and Mortgage 2) 17. Plaintiff incorporates the allegations contained in paragraphs 1-15 herein by reference. 18. That on the same date and as part of the same transaction and in order to secure the payment of the Note and the indebtedness evidenced thereby, Mr. Stewart and Mrs. Stewart, made, executed, and delivered to Community State Bank of Canton their Mortgage, Assignment of Production, Security Agreement, Fixture Filing, and Financing Statement, which was a real estate mortgage with power of sale ("Mortgage 2"), granting a first mortgage lien in and to the real property and premises situated in Woods County, Oklahoma (hereafter the "Property 2"), to-wit: All of Borrower’s undivided interest in oil, gas and other minerals (including all participating and non-participating interests) in, under and that may be produced from the following lands: The Southwest Quarter (SW/4) of Section Twenty-six (26), Township Twenty-four (24) North, Range Fourteen (14) WIM, Woods County, Oklahoma; The Southeast Quarter of the Northwest Quarter (SE/4 NW/4), the Southwest Quarter of the Northeast Quarter (SW/4 NE/4), the Northwest Quarter of the Southeast Quarter (NW/4 SE/4), and the Southwest Quarter of the Southeast Quarter (SW/4 SE/4) of Section Thirty-four (34), Township Twenty-four (24) North, Range Thirteen (13) WIM, Woods County, Oklahoma; The East Half of the Northeast Quarter (E/2 NE/4) of Section Thirty-five (35), Township Twenty-four (24) North, Range Thirteen (13) WIM, Woods County, Oklahoma; The West Half of the Northeast Quarter (W/2 NE/4) of Section Thirty-five (35), Township Twenty-four (24) North, Range Thirteen (13) WIM, Woods County, Oklahoma; Together with any and all oil, gas and other mineral leases, all extensions, renewals and substitutions thereof, now owned, hereafter acquired or required, collectively known as the “Hydrocarbons Property”. That said Mortgage 2 was duly executed and acknowledged according to law on July 17, 2020, and was recorded on July 22, 2020, in Book 1306, Page 1093 in the records of the Woods County Clerk. A true and correct copy of said Mortgage 2 is attached hereto as Exhibit C. 19. That Mortgage 2 also included a Grant of Security Interest (see ¶ 3) and an Assignment of Production Accounts; Accounts and Proceeds (see ¶ 4). Defendants granted a continuing security interest in and to all of Defendants’ interest in the Production and Production proceeds, as defined in said Mortgage 2. Id. 20. Mortgage 2 provides at ¶ 4 as follows: Upon the occurrence of an Event of Default (hereinafter defined), Mortgagor covenants to direct, and cause, all Purchasers to immediately pay all Production Proceeds to Lender at such place as Lender may direct. Mortgagor agrees to execute and deliver to the Purchasers such transfer orders, division orders, indemnifications or other documents as necessary and prudent to effectuate this Assignment of Production and the intention of this Security Instrument. If under any gas sales agreements or products sales contract, other than division orders or transfer orders, any Production Proceeds are required to be paid to Mortgagor so that under such existing agreements payment cannot be made of such Production Proceeds to Lender, Mortgagor’s interest in all Production Proceeds under such agreements and in all other Production Proceeds which for any reason may be paid to Mortgagor shall, when received by Mortgagor, constitute trust funds in the Mortgagor’s hands and shall be immediately paid over to Lender. All Purchasers of Production are hereby authorized and directed to pay Mortgagor’s interest in the Production directly to Lender and to continue such payments until the purchasers of Production ("Purchaser") have been furnished with a release in writing and duly executed by Lender. The deliver and receipt of the Production Proceeds from Purchasers to Lender shall be a full and complete release, discharge and acquittance to the Purchasers to the extent of all sums so paid. No Purchasers shall be required to ensure the proper application by Lender of the Production Proceeds so paid to Lender. 21. Plaintiff asks for an Order from this Court instructing all Purchasers, as defined in Mortgage 2, to issue all Purchase Proceeds, as defined in Mortgage 2, to Lender, pursuant to ¶4 of Mortgage 2. 22. That Defendants have defaulted on the Note for the reason that Defendants have failed to make payments according to the Note and Mr. Stewart is deceased. The Note default also constitutes a default under the Mortgage 2 securing the same and pursuant to the terms thereof. That Community State Bank of Canton is therefore accelerating the terms of the Note and Mortgage 2 and declaring the whole of said indebtedness due and payable. 23. That the Note and the Mortgage 2 provide that in case of a foreclosure of said mortgage(s) and as often as any action may be taken to foreclose the same, the Mortgagor shall pay the costs of collection, abstracting, title reports, and attorney fees, to the extent allowed under the law, in addition to other sums due, which shall be secured by this Mortgage 2. 24. That said Mortgage 2 held by Community State Bank of Canton specifically provides that appraisement of said premises is expressly waived or not waived at the sole option of the Mortgagee and that such option shall be exercised at the time judgment is rendered in any judicial foreclosure or at any time prior to the same. 25. That Community State Bank of Canton has complied with all of the terms, conditions, and provisions of the Note and Mortgage 2, and as such is empowered to bring this suit, foreclose Mortgage 2, and have Property 2 sold to satisfy the indebtedness. Community State Bank of Canton states that any right, title, or interest claimed by Defendants in or to Property 2 which secures the Note and Mortgage 2 is inferior and subordinate to the mortgage lien claimed by Community State Bank of Canton. 26. That Defendants are the present record owners of Property 2. 27. That Defendants are personally obligated on the Note herein sued upon. 28. That after allowing all just credits, as of June 18, 2024, there is due to Community State Bank of Canton on the Note and Mortgage 2, the principal sum of $620,778.03, plus accrued interest and late fees in the amount of $183,586.99, for a total payoff amount of $804,365.02, together with interest accruing thereon pursuant to the contract rate, all expenses advanced on behalf of these parties, reasonable attorney’s fees, court costs, and the costs of collection accrued and accruing, for which Mortgage 2 is a first and prior lien upon the real property and premises described hereinabove. WHEREFORE, Community State Bank of Canton prays for judgment in rem and in personam against Defendant Mary E. Stewart, individually and as Personal Representative of the Estate of Charles W. Stewart, deceased, and the Unknown Heirs, Successors, and Assigns, direct or remote, if any, of Charles W. Stewart, deceased, in the principal sum of $620,778.03, plus accrued interest and late fees in the amount of $183,586.99, for a total payoff amount of $804,365.02, as of June 18, 2024, together with interest accruing thereon pursuant to the contractual rate, all expenses advanced on behalf of these parties, reasonable attorney’s fees, court costs, and the costs of collection accrued and accruing, for which Mortgage 2 is a first and prior lien upon the real property and premises described hereinabove; further ordering that said real and personal property be sold to satisfy the lien of Plaintiff and for such other relief that the Court deems just and proper. Third Cause of Action – Foreclosure of Real Property (Note and Mortgage 3) 29. Plaintiff incorporates the allegations contained in paragraphs 1-27 herein by reference. 30. That on the same date and as part of the same transaction and in order to secure the payment of the Note and the indebtedness evidenced thereby, Mr. Stewart and Mrs. Stewart, made, executed, and delivered to Community State Bank of Canton their Mortgage, Assignment of Production, Security Agreement, Fixture Filing, and Financing Statement, which was a real estate mortgage with power of sale ("Mortgage 3"), granting a first mortgage lien in and to the real property and premises situated in Alfalfa County, Oklahoma (hereafter the "Property 3"), to-wit: All of Borrower’s undivided interest in oil, gas and other minerals (including all participating and non-participating interests) in, under and that may be produced from the following lands: The Southwest Quarter (SW/4) of Section Eight (8), Township Twenty-four (24) North, Range Twelve (12) WIM, Alfalfa County, Oklahoma; The Northeast Quarter (NE/4) of Section Nineteen (19), Township Twenty-four (24) North, Range Twelve (12) WIM, Alfalfa County, Oklahoma; Lots One (1) and Two (2) and the East Half of the Northwest Quarter (E/2 NW/4) of Section Nineteen (19), Township Twenty-four (24) North, Range Twelve (12) WIM, Alfalfa County, Oklahoma, LESS AND EXCEPT a parcel of land in Lots 1 and 2 and the East Half of the Northwest Quarter of Section 19, Township 24 North, Range 12 WIM, Alfalfa County, Oklahoma described as follows: Beginning at the Northwest corner of the Northwest Quarter of Section 19, thence East 1775.4 feet, thence South 468.6 feet, thence West 1775.4 feet, thence North 468.6 feet to the point of beginning, containing 19.1 acres more or less; Together with any and all oil, gas and other mineral leases, all extensions, renewals and substitutions thereof, now owned, hereafter acquired or required, collectively known as the “Hydrocarbons Property”. That said Mortgage 3 was duly executed and acknowledged according to law on July 17, 2020, and was recorded on July 23, 2020, in Book 0859, Page 305 in the records of the Alfalfa County Clerk. A true and correct copy of said Mortgage 3 is attached hereto as Exhibit D. 31. That Mortgage 3 also included a Grant of Security Interest (see ¶ 3) and an Assignment of Production Accounts; Accounts and Proceeds (see ¶ 4). Defendants granted a continuing security interest in and to all of Defendants’ interest in the Production and Production proceeds, as defined in said Mortgage 3. Id. 32. Mortgage 3 provides at ¶ 4 as follows: Upon the occurrence of an Event of Default (hereinafter defined), Mortgagor covenants to direct, and cause, all Purchasers to immediately pay all Production Proceeds to Lender at such place as Lender may direct. Mortgagor agrees to execute and deliver to the Purchasers such transfer orders, division orders, indemnifications or other documents as necessary and prudent to effectuate this Assignment of Production and the intention of this Security Instrument. If under any gas sales agreements or products sales contract, other than division orders or transfer orders, any Production Proceeds are required to be paid to Mortgagor so that under such existing agreements payment cannot be made of such Production Proceeds to Lender, Mortgagor’s interest in all Production Proceeds under such agreements and in all other Production Proceeds which for any reason may be paid to Mortgagor shall, when received by Mortgagor, constitute trust funds in the Mortgagor’s hands and shall be immediately paid over to Lender. All Purchasers of Production are hereby authorized and directed to pay Mortgagor’s interest in the Production directly to Lender and to continue such payments until the purchasers of Production (“Purchaser”) have been furnished with a release in writing and duly executed by Lender. The deliver and receipt of the Production Proceeds from Purchasers to Lender shall be a full and complete release, discharge and acquittance to the Purchasers to the extent of all sums so paid. No Purchasers shall be required to ensure the proper application by Lender of the Production Proceeds so paid to Lender. 33. Plaintiff asks for an Order from this Court instructing all Purchasers, as defined in Mortgage 3, to issue all Purchase Proceeds, as defined in Mortgage 3, to Lender, pursuant to ¶4 of Mortgage 3. 34. That Defendants have defaulted on the Note for the reason that Defendants have failed to make payments according to the Note and Mr. Stewart is deceased. The Note default also constitutes a default under Mortgage 3 securing the same and pursuant to the terms thereof. That Community State Bank of Canton is therefore accelerating the terms of the Note and Mortgage 3 and declaring the whole of said indebtedness due and payable. 35. That the Note and Mortgage 3 provide that in case of a foreclosure of said mortgage(s) and as often as any action may be taken to foreclose the same, the Mortgagor shall pay the costs of collection, abstracting, title reports, and attorney fees, to the extent allowed under the law, in addition to other sums due, which shall be secured by this Mortgage 3. 36. That said Mortgage 3 held by Community State Bank of Canton specifically provides that appraisement of said premises is expressly waived or not waived at the sole option of the Mortgagee and that such option shall be exercised at the time judgment is rendered in any judicial foreclosure or at any time prior to the same. 37. That Community State Bank of Canton has complied with all of the terms, conditions, and provisions of the Note and Mortgage 3, and as such is empowered to bring this suit, foreclose Mortgage 3, and have Property 3 sold to satisfy the indebtedness. Community State Bank of Canton states that any right, title, or interest claimed by Defendants in or to Property 3 which secures the Note and Mortgage 3 is inferior and subordinate to the mortgage lien claimed by Community State Bank of Canton. 38. That Defendants are the present record owners of Property 3. 39. That Defendants are personally obligated on the Note herein sued upon. 40. That after allowing all just credits, as of June 18, 2024, there is due to Community State Bank of Canton on the Note and Mortgage 3, the principal sum of $620,778.03, plus accrued interest and late fees in the amount of $183,586.99, for a total payoff amount of $804,365.02, together with interest accruing thereon pursuant to the contract rate, all expenses advanced on behalf of these parties, reasonable attorney’s fees, court costs, and the costs of collection accrued and accruing, for which Mortgage 3 is a first and prior lien upon the real property and premises described hereinabove. WHEREFORE, Community State Bank of Canton prays for judgment in rem and in personam against Defendant Mary E. Stewart, individually and as Personal Representative of the Estate of Charles W. Stewart, deceased, and the Unknown Heirs, Successors, and Assigns, direct or remote, if any, of Charles W. Stewart, deceased, in the principal sum of $620,778.03, plus accrued interest and late fees in the amount of $183,586.99, for a total payoff amount of $804,365.02, as of June 18, 2024, together with interest accruing thereon pursuant to the contractual rate, all expenses advanced on behalf of these parties, reasonable attorney’s fees, court costs, and the costs of collection accrued and accruing, for which Mortgage 3 is a first and prior lien upon the real property and premises described hereinabove; further ordering that said real and personal property be sold to satisfy the lien of Plaintiff and for such other relief that the Court deems just and proper. Fourth Cause of Action – Breach of Note and Replevin 41. Plaintiff incorporates the allegations contained in paragraphs 1-40 herein by reference. 42. As stated above, Mortgage 2 and Mortgage 3 granted certain Security Interests, as stated in ¶ 3 of Mortgage 2 and Mortgage 3. 43. Plaintiff filed a UCC Financing Statement with the Oklahoma County Clerk on April 24, 2021 as Instrument No. 2021042302041954 against Mr. Stewart and Mrs. Stewart, covering the following property ("Financing Statement"): All of the following which Debtor owns now or in the future, together with all parts, accessories, repairs, replacements, improvements, and accessions, and wherever located: EQUIPMENT: All equipment including, but not limited to machinery, vehicles, furniture, fixtures, manufacturing equipment, farm machinery and equipment, shop equipment, office and record keeping equipment, parts, and tools. All equipment described in a list or schedule Debtor gives to Secured Party will also be included in the Property, but such a list is not necessary to create or prefect a valid security interest in Debtors equipment. FARM PRODUCTS., "Farm Products" means goods, other than the standing timber, with respect to which the debtor is engaged in farming operation and which are: (A) crops grown, growing, or to be grown, including: (i) crops produced on trees, vines, and bushes; and (ii) aquatic goods produced in aquacultural operations; (B) livestock, born or unborn, including aquatic goods produced in aquacultural operations; (C) supplies used or produced in a farming operation; or (D) products of crops or livestock in their unmanufactured states. AS EXTRACTED COLLATERAL: All “As Extracted Collateral:, including oil, and mineral rights of every type owned now or in the future. "As Extracted Collateral" will be financed at the wellhead or Minehead of the well or mine located at: All of Borrower's undivided interest in oil, gas, and other minerals (including all participating and non-participating interests) in, under and that may be produced from the following lands: The Southwest Quarter (SW/4) of Section Twenty-six (26), Township Twenty-four (24) North, Range Fourteen (14) WIM, Woods County, Oklahoma; The Southeast Quarter of the Northwest Quarter (SE/4 NW/4), the Southwest Quarter of the Northeast Quarter (SW/4 NE/4), the Northwest Quarter of the Southeast Quarter (NW/4 SE/4), and the Southwest Quarter of the Southeast Quarter (SW/4 SE/4) of Section Thirty-four (34), Township Twenty-four (24) North, Range Thirteen (13) WIM, Woods County, Oklahoma; The East Half of the Northeast Quarter (E/2 NE/4) of Section Thirty-five (35), Township Twenty-four (24) North, Range Thirteen (13) WIM, Woods County, Oklahoma; The West Half of the Northeast Quarter (W/2 NE/4) of Section Thirty-five (35), Township Twenty-four (24) North, Range Thirteen (13) WIM, Woods County, Oklahoma; The Southwest Quarter (SW/4) of Section Eight (8), Township Twenty-four (24) North, Range Twelve (12) WIM, Alfalfa County, Oklahoma; The Northeast Quarter (NE/4) of Section Nineteen (19), Township Twenty-four (24), Range Twelve (12) West of the Indian Meridian, Alfalfa County, Oklahoma, LESS AND EXCEPT all oil, gas and other minerals. Lots One (1) and Two (2) and the East Half of the Northwest Quarter (E/2 NW/4) of Section Nineteen (19), Township Twenty-four (24) North, Range Twelve (12) WIM, Alfalfa County, Oklahoma, LESS AND EXCEPT a parcel of land in Lots 1 and 2 and the East Half of the Northwest Quarter of Section 19, Township 24 North, Range 12 WIM, Alfalfa County, Oklahoma described as follows: Beginning at the Northwest corner of the Northwest Quarter of Section 19, thence East 1775.4 feet, thence South 468.6 feet, thence West 1775.4 feet, thence North 468.6 feet to the point of beginning, containing 19.1 acres more or less; ADDITIONAL COLLATERAL DESCRIPTION: All rights Debtor has now or in the future to payments including, but nor limited to, payment for property or services sold, lease, rented, licensed, or assigned, whether or not Debtor has earned such payment by performance. This includes any rights and interests (including all liens and security interests) which Debtor may have by law or agreement against any account debtor or obligator of mine. GENERAL INTANGIBLES: All general intangibles including, but not limited to, tax refunds, applications for patents, copyrights, trademarks, trade secrets, good will, trade names, customer lists, permits. And franchises, payment intangibles, computer programs and all supporting information provided in connection with a transaction relating to computer programs, and the right to use Debtor’s name. ADDITIONAL REAL ESTATE DESCRIPTION: “As Extracted Collateral” will be financed at the wellhead or Minehead of the well or mine located at: All of Borrower’s undivided interest in oil, gas, and other minerals (including all participating sand non-participating interests) in, under and that may be produced from the following lands: The Southwest Quarter (SW/4) of Section Twenty-six *26), Township Twenty-four (24) North, Range Fourteen (14) WIM, Woods County, Oklahoma The Southeast Quarter of the Northwest Quarter (SE/4 NW/4), the Southwest Quarter of the Northeast Quarter (SW/4 NE/4), the Northwest Quarter of the Southeast Quarter (NW/4 SE/4), and the Southwest Quarter of the Southeast Quarter (SW/4 SE/4) of Section Thirty-four (34), Township Twenty-four (24) North, Range Thirteen (13) WIM, Woods County, Oklahoma; The East Half of the Northeast Quarter (E/2 NE/4) of Section Thirty-five (35), Township Twenty-four (24) North, Range Thirteen (13) WIM, Woods County, Oklahoma; The West Half of the Northeast Quarter (W/2 NE/4) of Section Thirty-five (35), Township Twenty-four (24) North, Range Thirteen (13) WIM, Woods County, Oklahoma; (“Collateral”). A true and correct copy of the Financing Statement is attached hereto as Exhibit E. 44. The filing of the Financing Statement properly perfected Plaintiff’s security interest in the Collateral. 45. The Defendants have defaulted under the Note by failing to pay the indebtedness pursuant to the terms of the Note. See Exhibit A. 46. Upon the event of default, Plaintiff accelerated the Note and declared the entire unpaid principal balance and all accrued interest immediately due and payable. 47. The Note provides that Plaintiff is entitled to recover its costs of collection, including reasonably attorneys’ fees, legal expenses, and court costs. See Exhibit A. 48. That after allowing all just credits, as of June 18, 2024, there is due to Community State Bank of Canton on the Note, the principal sum of $620,778.03, plus accrued interest and late fees in the amount of $183,586.99, for a total payoff amount of $804,365.02, together with interest accruing thereon pursuant to the contract rate, all expenses advanced on behalf of these parties, reasonable attorney’s fees, court costs, and the costs of collection accrued and accruing, for which the Financing Statement is a first and prior lien upon the real property and premises described hereinabove. 49. Plaintiff is entitled to reasonable attorney’s fees and its reasonable costs of collection under the terms of the Note and under 12 O.S. § 936. 50. Because of Defendants’ default under the Note, Plaintiff has a special ownership or interest in the Collateral on the Note and is entitled to immediate possession of the Collateral on the Note. 51. The actual value of the “Equipment” portion of the Collateral is estimated at $228,750, based upon an equipment inspection and appraisal conducted by Plaintiff on June 15, 2023 (“Appraisal”). A true and correct copy of said Appraisal is attached hereto as Exhibit F. 52. The Collateral on the Note has not been taken in execution on any order or judgment against Plaintiff, or for the payment of any tax, fine, or amercement assessed against Plaintiff, or by virtue of an order of delivery issued under Chapter 31 of Title 12 of the Oklahoma Statutes, or for any other mesne or final process issued against Plaintiff. 53. Plaintiff believes that Defendants are in actual or constructive possession of the Collateral on the Note and that Defendants’ possession is subject to the rights of Plaintiff. Although Plaintiff has demanded possession of the Collateral on the Note, Defendants have failed to deliver or relinquish possession of the Collateral on the Note to Plaintiff. Defendants are, therefore, wrongfully detaining the Collateral on the Note. 54. Plaintiff believes that Defendants may attempt to conceal, damage, or destroy the Collateral on the Note or a part thereof, or to remove the Collateral on the Note from the State or County, and Plaintiff will thereby suffer irreparable harm. Plaintiff is without adequate remedy at law to prevent such harm and injury. As such, Plaintiff respectfully requests this Court to enter an Order requiring Defendants to appear and disclose the location of the Collateral on the Note. 55. Plaintiff requests an Order authorizing it to issue subpoenas immediately pursuant to 12 O.S. § 2004.1 related to the location of the Collateral on the Note and the cell phone records and data of Defendant, Mrs. Stewart. 56. Pursuant to 40 O.S. § 4-508(D), Plaintiff requests an Order that at any time or times subsequent to the filing of this order, the Oklahoma Employment Security Commission shall produce, within thirty (30) days of receipt of this order, employment information of the Defendant, Mrs. Stewart. WHEREFORE, Plaintiff prays: (a) that this Court enter money judgment for Plaintiff and against the Defendants, jointly and severally, in the amount of $804,365.02, as of June 18, 2024, together with interest accruing thereon pursuant to the contract rate, all expenses advanced on behalf of these parties, reasonable attorney's fees, court costs, and the costs of collection accrued and accruing. (b) that the clerk of this Court issue the above-described notice to Defendants, and further that the notice inform them, that pursuant to 12 O.S. § 1571.1, any person who willfully or knowingly damages property in which there exists a valid right to issuance of an order of delivery, or on which such order shall be sought under the provisions of 12 O.S. § 1571, or who conceals it, with intent to interfere with the enforcement of the order, or who removes it from the jurisdiction of this Court with the intention of defeating the enforcement of an order of delivery, or who willfully refuses to disclose its location to an officer charged with execution an order for its delivery, or who, when in possession of such property, willfully interferes with the officers charged with execution of such writ, shall be guilty of a misdemeanor, and in addition to such criminal penalties as are provided by law, shall be liable to Plaintiff for double the amount of damages done to the property, together with a reasonable attorney's fees to be fixed by the Court; (c) that this Court issue an Order requiring Defendants appear and disclose the location of the Collateral on the Note; (d) that this Court issue an order for immediate delivery of the Collateral on the Note to Plaintiff; (e) that this Court issue Order authorizing it to issue subpoenas immediately pursuant to 12 O.S. § 2004.1 to nonparties for the production of documentary evidence related to the location of the Collateral on the Note and the cell phone records and data of Defendant, Mrs. Stewart. (f) that this Court render judgment in favor of Plaintiff and against the Defendants for possession of the Collateral on the Note, decreeing that Plaintiff's interest in the Collateral on the Note is senior and prior to the interest of Defendants, and authorizing the foreclosure of Plaintiff's security interest in the Collateral on the Note; and (g) that this Court award Plaintiff all contractual charges as set forth in the Note, and all other relief this Court deems just. Respectfully Submitted, Breanne Gordon, OBA #32508 Randy Gordon, OBA #32583 STUART & CLOVER, P.L.L.C. 130 N. Broadway Ave., Suite 100 Shawnee, Oklahoma 74801 Telephone: (405)275 - 0070 Facsimile: (405) 275 - 6805 [email protected] [email protected] Attorneys for Community State Bank of Canton VERIFICATION STATE OF OKLAHOMA ) COUNTY OF PONTOTOC ) SS ) I, Bode Bond, as President of Community State Bank of Canton, of lawful age, duly sworn upon oath states that I have read the attached and foregoing Petition and that the facts and matters set forth therein are true and correct to the best of my knowledge and belief. BODE BOND, PRESIDENT Subscribed and sworn to me, a Notary Public, on this 18th day of June, 2024. NOTARY PUBLIC <table> <tr> <th>LOAN NUMBER</th> <th>LOAN NAME</th> <th>ACCT. NUMBER</th> <th>NOTE DATE</th> <th>INITIALS</th> </tr> <tr> <td>528</td> <td>CHARLES W. STEWART</td> <td></td> <td>07/17/20</td> <td>BB</td> </tr> <tr> <th>NOTE AMOUNT</th> <th>INDEX (w/Margin)</th> <th>RATE</th> <th>MATURITY DATE</th> <th>LOAN PURPOSE</th> </tr> <tr> <td>$1,011,059.73</td> <td>Not Applicable</td> <td>6.000%</td> <td>07/17/25</td> <td>Agricultural</td> </tr> </table> CREDITOR USE ONLY PROMISSORY NOTE AND SECURITY AGREEMENT (Agricultural - Single Advance) DATE AND PARTIES. The date of this Promissory Note and Security Agreement (Loan Agreement) is July 17, 2020. The parties and their addresses are: LENDER: COMMUNITY STATE BANK OF CANTON 101 W. Main PO BOX 549 Canton, OK 73724-0549 Telephone: (580) 886-2231 BORROWER: CHARLES W. STEWART 7891 CO. RD. 500 ALINE, OK 73716 MARY E. STEWART 7891 CO. RD. 500 ALINE, OK 73716 1. DEFINITIONS. As used in this Loan Agreement, the terms have the following meanings: A. Pronouns. The pronouns "I," "me," and "my" refer to each Borrower signing this Loan Agreement and each other person or legal entity (including guarantors, endorsers, and sureties) who agrees to pay this Loan Agreement. "You" and "Your" refer to the Lender, any participants or syndicators, successors and assigns, or any person or company that acquires an interest in the Loan. B. Loan Agreement. Loan Agreement refers to this combined Note and Security Agreement, and any extensions, renewals, modifications and substitutions of this Loan Agreement. C. Loan. Loan refers to this transaction generally, including obligations and duties arising from the terms of all documents prepared or submitted for this transaction such as applications, security agreements, disclosures or notes, and this Loan Agreement. D. Loan Documents. Loan Documents refer to all the documents executed as a part of or in connection with the Loan. E. Property. Property is any property, real, personal or intangible, that secures my performance of the obligations of this Loan. F. Percent. Rates and rate change limitations are expressed as annualized percentages. G. Dollar Amounts. All dollar amounts will be payable in lawful money of the United States of America. 2. PROMISE TO PAY. For value received, I promise to pay you or your order, at your address, or at such other location as you may designate, the principal sum of $1,011,059.73 (Principal) plus interest from July 17, 2020 on the unpaid Principal balance until this Loan Agreement matures or this obligation is accelerated. 3. INTEREST. Interest will accrue on the unpaid Principal balance of this Loan Agreement at the rate of 6.000 percent (Interest Rate). A. Post-Maturity Interest. After maturity or acceleration, interest will accrue on the unpaid Principal balance of this Loan Agreement at the Interest Rate in effect from time to time, until paid in full. B. Maximum Interest Amount. Any amount assessed or collected as interest under the terms of this Loan Agreement will be limited to the maximum lawful amount of interest allowed by applicable law. Amounts collected in excess of the maximum lawful amount will be applied first to the unpaid Principal balance. Any remainder will be refunded to me. C. Accrual. Interest accrues using an Actual/360 days counting method. 4. ADDITIONAL CHARGES. As additional consideration, I agree to pay, or have paid, these additional fees and charges. A. Nonrefundable Fees and Charges. The following fees are earned when collected and will not be refunded if I prepay this Loan Agreement before the scheduled maturity date. Loan Documentation Fee. A(n) Loan Documentation Fee fee of $1,000.00 payable from the loan proceeds. Non-RE Filing. A(n) Non-RE Filing fee of $20.00 payable from the loan proceeds. Mortgage Tax Certification Fee. A(n) Mortgage Tax Certification Fee fee of $10.00 payable from the loan proceeds. City/County Tax Stamps - Mortgage. A(n) City/County Tax Stamps - Mortgage fee of $1,011.10 payable from the loan proceeds. Recording - Mortgage. A(n) Recording - Mortgage fee of $128.00 payable from the loan proceeds. Title Examination. A(n) Title Examination fee of $1,767.95 payable from the loan proceeds. 5. PAYMENT. I agree to pay this Loan Agreement on demand, but if no demand is made, I agree to pay this Loan Agreement in 5 payments. This Loan Agreement is amortized over 25 payments. I will make 4 payments of $79,745.98 beginning on July 17, 2021, and on the same day each year thereafter. A single "balloon payment" of the entire unpaid balance of Principal and interest will be due July 17, 2025. Payments will be rounded down to the nearest $.01. With the final payment I also agree to pay any additional fees or charges owing and the amount of any advances you have made to others on my behalf. Payments scheduled to be paid on the 29th, 30th or 31st day of a month that contains no such day will, instead, be made on the last day of such month. Each payment I make on this Loan Agreement will be applied first to interest that is due, and finally to principal that is due. If you and I agree to a different application of payments, we will describe our agreement on this Loan Agreement. You may change how payments are applied in your sole discretion without notice to me. The actual amount of my final payment will depend on my payment record. 6. PREPAYMENT. I may prepay this Loan in full or in part at any time. Any partial prepayment will not excuse any later scheduled payments until I pay in full. 7. LOAN PURPOSE. The purpose of this Loan is REFINANCE FARMING OPERATION PLUS $23,482.74 OPERATING EXPENSES 8. SECURITY. The Loan is secured by Property described in the SECURITY AGREEMENT section, and by separate security instruments prepared together with this Loan Agreement as follows: Document Name Parties to Document Mortgage - 7891 CR 500 (AKA) E/2 NE/4 CHARLES W. STEWART, MARY E. STEWART 35-24-13 WOODS CO, ALINE, OK 73716 Mortgage - NE/4 19-24-12, ALFALFA CHARLES W. STEWART, MARY E. STEWART COUNTY, OK Mortgage, Assignment of Production, CHARLES W. STEWART, MARY E. STEWART Security Agreement, Fixture Filing and Financing Statement - Mortgage, Assignment of Production, CHARLES W. STEWART, MARY E. STEWART Security Agreement, Fixture Filing and Financing Statement - 9. SECURITY AGREEMENT. A. Secured Debts. This Security Agreement will secure the following debts (Secured Debts), together with all extensions, renewals, refinancings, modifications and replacements of these debts: (1) Sums Advanced under the terms of this Loan Agreement. All sums advanced and expenses incurred by you under the terms of this Loan Agreement. (2) All Debts. All present and future debts of all Borrowers owing to you, even if this Security Agreement is not specifically referenced, the future debts are also secured by other collateral, or if the future debt is unrelated to or of a different type than this debt. If more than one person signs this Security Agreement, each agrees that it will secure debts incurred either individually or with others who may not sign this Security Agreement. Nothing in this Security Agreement constitutes a commitment to make additional or future loans or advances. Any such commitment must be in writing. This Security Agreement will not secure any debt which is also secured by real property or for which a non-possessory, non-purchase money security interest is created in "household goods" in connection with a "consumer loan," as those terms are defined by federal law governing unfair and deceptive credit practices. In addition, this Security Agreement will not secure any other debt if, with respect to such other debt, you fail to fulfill any necessary requirements or fail to conform to any limitations of the Truth in Lending Act (Regulation Z) or the Real Estate Settlement Procedures Act (Regulation X) that are required for loans secured by the Property or if, as a result, the other debt would become subject to Section 670 of the John Warner National Defense Authorization Act for Fiscal Year 2007. B. Limitations on Cross-collateralization. The cross-collateralization clause on any existing or future loan, but not including this Loan, is void and ineffective as to this Loan, including any extension or refinancing. The Loan is not secured by a previously executed security instrument if a non-possessory, non-purchase money security interest is created in "household goods" in connection with a "consumer loan," as those terms are defined by federal law governing unfair and deceptive credit practices. The Loan is not secured by a previously executed security instrument if you fail to fulfill any necessary requirements or fail to conform to any limitations of the Real Estate Settlement Procedures Act, (Regulation X), that are required for loans secured by the Property or if, as a result, the other debt would become subject to Section 670 of the John Warner National Defense Authorization Act for Fiscal Year 2007. The Loan is not secured by a previously executed security instrument if you fail to fulfill any necessary requirements or fail to conform to any limitations of the Truth in Lending Act, (Regulation Z), that are required for loans secured by the Property. C. Security Interest. To secure the payment and performance of the Secured Debts, I grant you a security interest in all of the Property described in this Security Agreement that I own or have sufficient rights in which to transfer an interest, now or in the future, wherever the Property is or will be located, and all proceeds and products from the Property (including, but not limited to, all parts, accessories, repairs, replacements, improvements, and accession to the Property). Property is all the collateral given as security for the Secured Debts and described in this Security Agreement, and includes all obligations that support the payment or performance of the Property. "Proceeds" includes cash proceeds, non-cash proceeds and anything acquired upon the sale, lease, license, exchange, or other disposition of the Property; any rights and claims arising from the Property; and any collections and distributions on account of the Property. This Security Agreement remains in effect until terminated in writing, even if the Secured Debts are paid and you are no longer obligated to advance funds to me under any loan or credit agreement. D. Property Description. The Property subject to this Security Agreement is described as follows: (1) Equipment. All equipment including, but not limited to, all machinery, vehicles, furniture, fixtures, manufacturing equipment, farm machinery and equipment, shop equipment, office and recordkeeping equipment, and parts and tools. All equipment described in a list or schedule which I give to you will also be included in the Property, but such a list is not necessary for a valid security interest in my equipment. "Equipment" means goods other than inventory, farm products, or consumer goods. The term "Equipment" is as defined by the Uniform Commercial Code and further as modified or amended by the laws of the jurisdiction which governs this transaction. (2) Farm Products. "Farm products" means goods, other than standing timber, with respect to which the debtor is engaged in a farming operation and which are: (A) crops grown, growing, or to be grown, including: (i) crops produced on trees, vines, and bushes; and (ii) aquatic goods produced in aquacultural operations; (B) livestock, born or unborn, including aquatic goods produced in aquacultural operations; (C) supplies used or produced in a farming operation; or (D) products of crops or livestock in their unmanufactured states. The term "Farm Products" is as defined by the Uniform Commercial Code and further as modified or amended by the laws of the jurisdiction which governs this transaction. E. Duties Toward Property. (1) Protection of Secured Party's Interest. I will defend the Property against any other claim. I agree to do whatever you require to protect your security interest and to keep your claim in the Property ahead of the claims of other creditors. I will not do anything to harm your position. I will keep books, records and accounts about the Property and my business in general. I will let you examine these and make copies at any reasonable time. I will prepare any report or accounting you request which deals with the Property. (2) Use, Location, and Protection of the Property. I will keep the Property in my possession and in good repair. I will use it only for agricultural purposes. I will not change this specified use without your prior written consent. You have the right of reasonable access to inspect the Property and I will immediately inform you of any loss or damage to the Property. I will not cause or permit waste to the Property. At my expense, I will do all acts necessary to preserve and protect the Property. I will prepare the Property for market and, when it is ready for market, promptly notify you and follow any instructions you may have regarding holding, shipping, storing and marketing the Property. You will be given prompt notice of any damage to the Property or to the land or any building or improvement on the land. I will maintain the land in arable condition and keep it free of EPA-banned or non-labeled chemicals in conformity with requirements of the EPA. I will maintain the present buildings and improvements on the land in good condition and repair, and I will promptly pay for all agricultural input. If I am a producer of crops, I will plant, cultivate and harvest crops in due season. I will keep the Property at my address listed in the DATE AND PARTIES section unless we agree I may keep it at another location. If the Property is to be used in other states, I will give you a list of those states. The location of the Property is given to aid in the identification of the Property. It does not in any way limit the scope of the security interest granted to you. I will notify you in writing and obtain your prior written consent to any change in location of any of the Property. I will not use the Property in violation of any law. I will notify you in writing prior to any change in my name or address. Until the Secured Debts are fully paid and this Security Agreement is terminated, I will not grant a security interest in any of the Property without your prior written consent. I will pay all taxes and assessments levied or assessed against me or the Property and provide timely proof of payment of these taxes and assessments upon request. (3) Selling, Leasing or Encumbering the Property. I will not sell, offer to sell, lease, or otherwise transfer or encumber the Property without your prior written permission. Any disposition of the Property contrary to this Security Agreement will violate your rights. Your permission to sell the Property may be reasonably withheld without regard to the creditworthiness of any buyer or transferee. I will not permit the Property to be the subject of any court order affecting my rights to the Property in any action by anyone other than you. If the Property includes chattel paper or instruments, either as original collateral or as proceeds of the Property, I will note your security interest on the face of the chattel paper or instruments. (4) Additional Duties Specific to Farm Products. In this paragraph the terms "farm products," "buyers," "commission merchants" and "selling agents" have the meanings given to them in the Food Security Act of 1985. I will provide you, at your request, a written list of the buyers, commission merchants or selling agents to or through whom I may sell my farm products. In addition to those parties named on this written list, I authorize you to notify at your sole discretion any additional parties regarding your security interest in my farm products. I remain subject to all applicable penalties for selling my farm products in violation of this Agreement and the Food Security Act of 1985. F. Authority To Perform. I authorize you to do anything you deem reasonably necessary to protect the Property, and perfect and continue your security interest in the Property. If I fail to perform any of my duties under this Loan Agreement or any other security interest, you are authorized, without notice to me, to perform the duties or cause them to be performed. These authorizations include, but are not limited to, permission to: (1) pay and discharge taxes, liens, security interests or other encumbrances at any time levied or placed on the Property. (2) pay any rents or other charges under any lease affecting the Property. (3) order and pay for the repair, maintenance and preservation of the Property. (4) file any financing statements on my behalf and pay for filing and recording fees pertaining to the Property. (5) place a note on any chattel paper indicating your interest in the Property. (6) take any action you feel necessary to realize on the Property, including performing any part of a contract or endorsing it in my name. (7) handle any suits or other proceedings involving the Property in my name. (8) prepare, file, and sign my name to any necessary reports or accountings. (9) make an entry on my books and records showing the existence of this Agreement. If you perform for me, you will use reasonable care. If you exercise the care and follow the procedures that you generally apply to the collection of obligations owed to you, you will be deemed to be using reasonable care. Reasonable care will not include: any steps necessary to preserve rights against prior parties; the duty to send notices, perform services or take any other action in connection with the management of the Property; or the duty to protect, preserve or maintain any security interest given to others by me or other parties. Your authorization to perform for me will not create an obligation to perform and your failure to perform will not preclude you from exercising any other rights under the law or this Loan Agreement. All cash and non-cash proceeds of the Property may be applied by you only upon your actual receipt of cash proceeds against such of the Secured Debts, matured or unmatured, as you determine in your sole discretion. If you come into actual or constructive possession of the Property, you will preserve and protect the Property. For purposes of this paragraph, you will be in actual possession of the Property only when you have physical, immediate and exclusive control over the Property and you have affirmatively accepted that control. You will be in constructive possession of the Property only when you have both the power and the intent to exercise control over the Property. G. Name and Location. My name indicated in the DATE AND PARTIES section is my exact legal name. CHARLES W. STEWART is an individual with a principal residence located in Oklahoma. MARY E. STEWART is an individual with a principal residence located in Oklahoma. I will provide verification of registration and location upon your request. I will provide you with at least 30 days notice prior to any change in my name, address, or state of organization or registration. H. Perfection of Security Interest. I authorize you to file a financing statement and/or security agreement, as appropriate, covering the Property. I will comply with, facilitate, and otherwise assist you in connection with obtaining perfection or control over the Property for purposes of perfecting your security interest under the Uniform Commercial Code. I agree to pay all actual costs of terminating your security interest. 10. DEFAULT. I understand that you may demand payment anytime at your discretion. For example, you may demand payment in full if any of the following events (known separately and collectively as an Event of Default) occur: A. Payments. I fail to make a payment in full when due. B. Insolvency or Bankruptcy. The death, dissolution or insolvency of, appointment of a receiver by or on behalf of, application of any debtor relief law, the assignment for the benefit of creditors by or on behalf of, the voluntary or involuntary termination of existence by, or the commencement of any proceeding under any present or future federal or state insolvency, bankruptcy, reorganization, composition or debtor relief law by or against me or any co-signer, endorser, surety or guarantor of this Loan Agreement or any other obligations I have with you. C. Death or Incompetency. I die or am declared legally incompetent. D. Failure to Perform. I fail to perform any condition or to keep any promise or covenant of this Loan Agreement. E. Other Documents. A default occurs under the terms of any other Loan Document. F. Other Agreements. I am in default on any other debt or agreement I have with you. G. Misrepresentation. I make any verbal or written statement or provide any financial information that is untrue, inaccurate, or conceals a material fact at the time it is made or provided. H. Judgment. I fail to satisfy or appeal any judgment against me. I. Forfeiture. The Property is used in a manner or for a purpose that threatens confiscation by a legal authority. J. Name Change. I change my name or assume an additional name without notifying you before making such a change. K. Property Transfer. I transfer all or a substantial part of my money or property. L. Property Value. You determine in good faith that the value of the Property has declined or is impaired. M. Erosion. Any loan proceeds are used for a purpose that will contribute to excessive erosion of highly erodible land or to the conversion of wetlands to produce or to make possible the production of an agricultural commodity, as provided by 7 CFR Part 12. N. Insecurity. You determine in good faith that a material adverse change has occurred in my financial condition from the conditions set forth in my most recent financial statement before the date of this Loan Agreement or that the prospect for payment or performance of the Loan is impaired for any reason. 11. DUE ON SALE OR ENCUMBRANCE. You may, at your option, declare the entire balance of this Loan Agreement to be immediately due and payable upon the creation of, or contract for the creation of, any lien, encumbrance, transfer or sale of all or any part of the Property. This right is subject to the restrictions imposed by federal law, as applicable. However, if I am in default under this Agreement, I may not sell any Products that are farm products or inventory derived from farm products even in the ordinary course of business. 12. WAIVERS AND CONSENT. To the extent not prohibited by law, I waive protest, presentment for payment, demand, notice of acceleration, notice of intent to accelerate and notice of dishonor. A. Additional Waivers By Borrower. In addition, I, and any party to this Loan Agreement, to the extent permitted by law, consent to certain actions you may take, and generally waive defenses that may be available based on those actions or based on the status of a party to this Loan Agreement. (1) You may renew or extend payments on this Loan Agreement, regardless of the number of such renewals or extensions. (2) You may release any Borrower, endorser, guarantor, surety, accommodation maker or any other co-signer. (3) You may release, substitute or impair any Property securing this Loan Agreement. (4) You, or any institution participating in this Loan Agreement, may invoke your right of set-off. (5) You may enter into any sales, repurchases or participations of this Loan Agreement to any person in any amounts and I waive notice of such sales, repurchases or participations. (6) I agree that any of us signing this Loan Agreement as a Borrower is authorized to modify the terms of this Loan Agreement or any instrument securing, guarantying or relating to this Loan Agreement. B. No Waiver By Lender. Your course of dealing, or your forbearance from, or delay in, the exercise of any of your rights, remedies, privileges or right to insist upon my strict performance of any provisions contained in this Loan Agreement, shall not be construed as a waiver by you, unless any such waiver is in writing and is signed by you. C. Waiver of Claims. I waive all claims for loss or damage caused by your acts or omissions where you acted reasonably and in good faith. 13. REMEDIES. After I default, you may at your option do any one or more of the following. A. Acceleration. You may make all or any part of the amount owing by the terms of this Loan Agreement immediately due. This remedy is subject to my limited right to cure certain defaults and to receive any notice informing me of such a right under 46 OSA 44. B. Sources. You may use any and all remedies you have under state or federal law or in any Loan Document. C. Insurance Benefits. You may make a claim for any and all insurance benefits or refunds that may be available on my default. D. Payments Made On My Behalf. Amounts advanced on my behalf will be immediately due and may be added to the balance owing under the terms of this Loan Agreement, and accrue interest at the highest post-maturity interest rate. E. Attachment. You may attach or garnish my wages or earnings. F. Set-Off. You may use the right of set-off. This means you may set-off any amount due and payable under the terms of this Loan Agreement against any right I have to receive money from you. My right to receive money from you includes any deposit or share account balance I have with you; any money owed to me on an item presented to you or in your possession for collection or exchange; and any repurchase agreement or other non-deposit obligation. "Any amount due and payable under the terms of this Loan Agreement" means the total amount to which you are entitled to demand payment under the terms of this Loan Agreement at the time you set-off. Subject to any other written contract, if my right to receive money from you is also owned by someone who has not agreed to pay this Loan Agreement, your right of set-off will apply to my interest in the obligation and to any other amounts I could withdraw on my sole request or endorsement. Your right of set-off does not apply to an account or other obligation where my rights arise only in a representative capacity. It also does not apply to any Individual Retirement Account or other tax-deferred retirement account. You will not be liable for the dishonor of any check when the dishonor occurs because you set-off against any of my accounts. I agree to hold you harmless from any such claims arising as a result of your exercise of your right of set-off. G. Assembly of Property. You may require me to gather the Property and make it available to you in a reasonable fashion. H. Repossession. You may repossess the Property so long as the repossession does not involve a breach of the peace. This remedy is subject to my limited right to cure certain defaults and to receive any notice informing me of such a right under 46 OSA 44. You may sell, lease or otherwise dispose of the Property as provided by law. You may apply what you receive from the disposition of the Property to your expenses, your attorneys' fees and legal expenses (where not prohibited by law), and any debt I owe you. If what you receive from the disposition of the Property does not satisfy the debt, I will be liable for the deficiency (where permitted by law). In some cases, you may keep the Property to satisfy the debt. Where a notice is required, I agree that ten days prior written notice sent by first class mail to my address listed in this Loan Agreement will be reasonable notice to me under the Oklahoma Uniform Commercial Code. If the Property is perishable or threatens to decline speedily in value, you may, without notice to me, dispose of any or all of the Property in a commercially reasonable manner at my expense following any commercially reasonable preparation or processing (where permitted by law). If any items not otherwise subject to this Loan Agreement are contained in the Property when you take possession, you may hold these items for me at my risk and you will not be liable for taking possession of them (where permitted by law). I. Use and Operation. You may enter upon my premises and take possession of all or any part of my property for the purpose of preserving the Property or its value, so long as you do not breach the peace. You may use and operate my property for the length of time you feel is necessary to protect your interest, all without payment or compensation to me. Or, at your option and without notice to me, you may appoint an ex parte receiver for the purposes of preparing or processing the Farm Products at my expense and for the additional purposes of selling and disposing of the Farm Products portion of the Property. J. Waiver. Except as otherwise required by law, by choosing any one or more of these remedies you do not give up your right to use any other remedy. You do not waive a default if you choose not to use a remedy. By electing not to use any remedy, you do not waive your right to later consider the event a default and to use any remedies if the default continues or occurs again. 14. COLLECTION EXPENSES AND ATTORNEYS' FEES. On or after the occurrence of an Event of Default, to the extent permitted by law, I agree to pay all expenses of collection, enforcement or protection of your rights and remedies under this Loan Agreement or any other Loan Document. Expenses include, but are not limited to, attorneys' fees, court costs and other legal expenses. These expenses are due and payable immediately. If not paid immediately, these expenses will bear interest from the date of payment until paid in full at the highest interest rate in effect as provided for in the terms of this Loan Agreement. All fees and expenses will be secured by the Property I have granted to you, if any. In addition, to the extent permitted by the United States Bankruptcy Code, I agree to pay the reasonable attorneys' fees incurred by you to protect your rights and interests in connection with any bankruptcy proceedings initiated by or against me. 15. COMMISSIONS. I understand and agree that you (or your affiliate) will earn commissions or fees on any insurance products, and may earn such fees on other services that I buy through you or your affiliate. 16. WARRANTIES AND REPRESENTATIONS. I have the right and authority to enter into this Loan Agreement. The execution and delivery of this Loan Agreement will not violate any agreement governing me or to which I am a party. A. Ownership of Property. I represent that I own all of the Property. Your claim to the Property is ahead of the claims of any other creditor, except as disclosed in writing to you prior to any advance on the Secured Debts. I represent that I am the original owner of the Property and, if I am not, that I have provided you with a list of prior owners of the Property. 17. INSURANCE. I agree to obtain the insurance described in this Loan Agreement. A. Property Insurance. I agree to keep the Property insured against the risks reasonably associated with the Property. I will maintain this insurance in the amounts you require. This insurance will last until the Property is released from this Loan Agreement. I may choose the insurance company, subject to your approval, which will not be unreasonably withheld. I will have the insurance company name you as loss payee on any insurance policy. I will give you and the insurance company immediate notice of any loss. You may apply the insurance proceeds toward what is owed on the Secured Debts. You may require added security as a condition of permitting any insurance proceeds to be used to repair or replace the Property. If you acquire the Property in damaged condition, my right to any insurance policies and proceeds will pass to you to the extent of the Secured Debts. I will immediately notify you of cancellation or termination of insurance. If I fail to keep the Property insured, you may obtain insurance to protect your interest in the Property and I will pay for the insurance on your demand. You may demand that I pay for the insurance all at once, or you may add the insurance premiums to the balance of the Secured Debts and charge interest on it at the rate that applies to the Secured Debts. This insurance may include lesser or greater coverages than originally required of me, may be written by a company other than one I would choose, and may be written at a higher rate than I could obtain if I purchased the insurance. I acknowledge and agree that you or one of your affiliates may receive commissions on the purchase of this insurance. 18. APPLICABLE LAW. This Loan Agreement is governed by the laws of Oklahoma, the United States of America, and to the extent required, by the laws of the jurisdiction where the Property is located, except to the extent such state laws are preempted by federal law. 19. JOINT AND SEVERAL LIABILITY AND SUCCESSORS. My obligation to pay the Loan is independent of the obligation of any other person who has also agreed to pay it. You may sue me alone, or anyone else who is obligated on the Loan, or any number of us together, to collect the Loan. Extending the Loan or new obligations under the Loan, will not affect my duty under the Loan and I will still be obligated to pay the Loan. This Loan Agreement shall inure to the benefit of and be enforceable by you and your successors and assigns and shall be binding upon and enforceable against me and my successors and assigns. 20. AMENDMENT, INTEGRATION AND SEVERABILITY. This Loan Agreement may not be amended or modified by oral agreement. No amendment or modification of this Loan Agreement is effective unless made in writing. This Loan Agreement and the other Loan Documents are the complete and final expression of the agreement. If any provision of this Loan Agreement is unenforceable, then the unenforceable provision will be severed and the remaining provisions will still be enforceable. No present or future agreement securing any other debt I owe you will secure the payment of this Loan if, with respect to this loan, you fail to fulfill any necessary requirements or fail to conform to any limitations of the Truth in Lending Act (Regulation Z) or the Real Estate Settlement Procedures Act (Regulation X) that are required for loans secured by the Property or if, as a result, this Loan would become subject to Section 670 of the John Warner National Defense Authorization Act for Fiscal Year 2007. 21. INTERPRETATION. Whenever used, the singular includes the plural and the plural includes the singular. The section headings are for convenience only and are not to be used to interpret or define the terms of this Loan Agreement. 22. NOTICE, FINANCIAL REPORTS AND ADDITIONAL DOCUMENTS. Unless otherwise required by law, any notice will be given by delivering it or mailing it by first class mail to the appropriate party's address listed in the DATE AND PARTIES section, or to any other address designated in writing. Notice to one Borrower will be deemed to be notice to all Borrowers. I will inform you in writing of any change in my name, address or other application information. I will provide you any correct and complete financial statements or other information you request. I agree to sign, deliver, and file any additional documents or certifications that you may consider necessary to perfect, continue, and preserve my obligations under this Loan and to confirm your lien status on any Property. Time is of the essence. 23. CREDIT INFORMATION. I agree to supply you with whatever information you reasonably request. You will make requests for this information without undue frequency, and will give me reasonable time in which to supply the information. 24. ERRORS AND OMISSIONS. I agree, if requested by you, to fully cooperate in the correction, if necessary, in the reasonable discretion of you of any and all loan closing documents so that all documents accurately describe the loan between you and me. I agree to assume all costs including by way of illustration and not limitation, actual expenses, legal fees and marketing losses for failing to reasonably comply with your requests within thirty (30) days. 25. SIGNATURES. By signing, I agree to the terms contained in this Loan Agreement. I also acknowledge receipt of a copy of this Loan Agreement. BORROWER: Charles W. Stewart CHARLES W. STEWART Date: 7-17-20 Mary E. Stewart MARY E. STEWART Date: 7-17-20 LENDER: Community State Bank of Canton By Bobde Bond Bode Bond, President Date: 7-17-20 TREASURER'S ENDORSEMENT I hereby certify that I received $505.55 and issued receipt No. 19 therefor in payment of mortgage tax on the within mortgage dated the 22 day of July 2020. David McMillen County Treasurer Wood County, Okla. Space Above This Line For Recording Data When recorded return to Loan Department, Community State Bank of Canton, P.O. Box 549, Canton, OK 73724-0549 MORTGAGE (With Future Advance Clause) DATE AND PARTIES. The date of this Mortgage (Security Instrument) is JULY 17, 2020. The parties and their addresses are: MORTGAGOR: CHARLES W. STEWART Spouse of MARY E. STEWART 7891 CO. RD. 500 ALINE, OK 73716 MARY E. STEWART Spouse of CHARLES W. STEWART 7891 CO. RD. 500 ALINE, OK 73716 LENDER: COMMUNITY STATE BANK OF CANTON Organized and existing under the laws of Oklahoma 101 W. Main PO Box 549 Canton, OK 73724-0549 1. DEFINITIONS. For the purposes of this document, the following term has the following meaning. A. Loan. "Loan" refers to this transaction generally, including obligations and duties arising from the terms of all documents prepared or submitted for this transaction. 2. CONVEYANCE. For good and valuable consideration, the receipt and sufficiency of which is acknowledged, and to secure the Secured Debts and Mortgagor's performance under this Security Instrument, Mortgagor does hereby grant, bargain, convey and mortgage to Lender the following described property: EAST HALF OF THE NORTHEAST QUARTER (E/2 NE/4) OF SECTION THIRTY-FIVE (35), IN TOWNSHIP TWENTY-FOUR (24) NORTH, RANGE THIRTEEN (13) WEST OF THE INDIAN MERIDIAN, WOODS COUNTY, OKLAHOMA. LESS AND EXCEPT ALL OIL, GAS AND OTHER MINERALS. The property is located in Woods County at 7891 CR 500 (AKA) E/2 NE/4 35-24-13 WOODS CO, ALINE, Oklahoma 73716. Together with all rights, easements, appurtenances, royalties, mineral rights, oil and gas rights, crops, timber including timber to be cut now or at any time in the future, all diversion payments or third party payments made to crop producers, all existing and future improvements, structures, fixtures, and replacements that may now, or at any time in the future, be part of the real estate described (all referred to as Property). The term Property also includes, but is not limited to, any and all water wells, water, ditches, reservoirs, reservoir sites and dams located on the real estate and all riparian and water rights associated with the Property, however established. This Security Instrument will remain in effect until the Secured Debts and all underlying agreements have been terminated in writing by Lender. 3. SECURED DEBTS AND FUTURE ADVANCES. The term "Secured Debts" includes and this Security Instrument will secure each of the following: A. Specific Debts. The following debts and all extensions, renewals, refinancings, modifications and replacements. A promissory note or other agreement, No. 628, dated July 17, 2020, from Mortgagor to Lender, with a loan amount of $1,011,059.73. B. Future Advances. All future advances from Lender to Mortgagor under the Specific Debts executed by Mortgagor in favor of Lender after this Security Instrument. If more than one person signs this Security Instrument, each agrees that this Security Instrument will secure all future advances that are given to Mortgagor either individually or with others who may not sign this Security Instrument. All future advances are secured by this Security Instrument even though all or part may not yet be advanced. All future advances are secured as if made on the date of this Security Instrument. Nothing in this Security Instrument shall constitute a commitment to make additional or future advances in any amount. Any such commitment must be agreed to in a separate writing. C. All Debts. All present and future debts from Mortgagor to Lender, even if this Security Instrument is not specifically referenced, or if the future debt is unrelated to or of a different type than this debt. If more than one person signs this Security Instrument, each agrees that it will secure debts incurred either individually or with others who may not sign this Security Instrument. Nothing in this Security Instrument constitutes a commitment to make additional or future loans or advances. Any such commitment must be in writing. This Security Instrument will not secure any debt for which a non-possessory, non-purchase money security interest is created in "household goods" in connection with a "consumer loan," as those terms are defined by federal law governing unfair and deceptive credit practices. This Security Instrument will not secure any debt for which a security interest is created in "margin stock" and Lender does not obtain a "statement of purpose," as defined and required by federal law governing securities. This Security Instrument will not secure any other debt if Lender, with respect to that other debt, fails to fulfill any necessary requirements or fails to conform to any limitations of the Truth in Lending Act (Regulation Z) or the Real Estate Settlement Procedures Act (Regulation X) that are required for loans secured by the Property. D. Sums Advanced. All sums advanced and expenses incurred by Lender under the terms of this Security Instrument. 4. LIMITATIONS ON CROSS-COLLATERALIZATION. The cross-collateralization clause on any existing or future loan, but not including this Loan, is void and ineffective as to this Loan, including any extension or refinancing. The Loan is not secured by a previously executed security instrument if a non-possessory, non-purchase money security interest is created in "household goods" in connection with a "consumer loan," as those terms are defined by federal law governing unfair and deceptive credit practices. The Loan is not secured by a previously executed security instrument if Lender fails to fulfill any necessary requirements or fails to conform to any limitations of the Real Estate Settlement Procedures Act, (Regulation X), that are required for loans secured by the Property or if, as a result, the other debt would become subject to Section 670 of the John Warner National Defense Authorization Act for Fiscal Year 2007. The Loan is not secured by a previously executed security instrument if Lender fails to fulfill any necessary requirements or fails to conform to any limitations of the Truth in Lending Act, (Regulation Z), that are required for loans secured by the Property. 5. PAYMENTS. Mortgagor agrees that all payments under the Secured Debts will be paid when due and in accordance with the terms of the Secured Debts and this Security Instrument. 6. WARRANTY OF TITLE. Mortgagor covenants that Mortgagor is lawfully seized of the estate conveyed by this Security Instrument and has the right to grant, bargain, convey, sell, and mortgage the Property. Mortgagor also warrants that the Property is unencumbered, except for encumbrances of record. 7. PRIOR SECURITY INTERESTS. With regard to any other mortgage, deed of trust, security agreement or other lien document that created a prior security interest or encumbrance on the Property, Mortgagor agrees: A. To make all payments when due and to perform or comply with all covenants. B. To promptly deliver to Lender any notices that Mortgagor receives from the holder. C. Not to allow any modification or extension of, nor to request any future advances under any note or agreement secured by the lien document without Lender's prior written consent. 8. CLAIMS AGAINST TITLE. Mortgagor will pay all taxes, assessments, liens, encumbrances, lease payments, ground rents, utilities, and other charges relating to the Property when due. Lender may require Mortgagor to provide to Lender copies of all notices that such amounts are due and the receipts evidencing Mortgagor's payment. Mortgagor will defend title to the Property against any claims that would impair the lien of this Security Instrument. Mortgagor agrees to assign to Lender, as requested by Lender, any rights, claims or defenses Mortgagor may have against parties who supply labor or materials to maintain or improve the Property. 9. DUE ON SALE OR ENCUMBRANCE. Lender may, at its option, declare the entire balance of the Secured Debt to be immediately due and payable upon the creation of, or contract for the creation of, any lien, encumbrance, transfer or sale of all or any part of the Property. This right is subject to the restrictions imposed by federal law, as applicable. 10. WARRANTIES AND REPRESENTATIONS. Mortgagor has the right and authority to enter into this Security Instrument. The execution and delivery of this Security Instrument will not violate any agreement governing Mortgagor or to which Mortgagor is a party. 11. PROPERTY CONDITION, ALTERATIONS, INSPECTION, VALUATION AND APPRAISAL. Mortgagor will keep the Property in good condition and make all repairs that are reasonably necessary. Mortgagor will not commit or allow any waste, impairment, or deterioration of the Property. Mortgagor will keep the Property free of noxious weeds and grasses. Mortgagor agrees that the nature of the occupancy and use will not substantially change without Lender’s prior written consent. Mortgagor will not permit any change in any license, restrictive covenant or easement without Lender’s prior written consent. Mortgagor will notify Lender of all demands, proceedings, claims, and actions against Mortgagor, and of any loss or damage to the Property. No portion of the Property will be removed, demolished or materially altered without Lender’s prior written consent except that Mortgagor has the right to remove items of personal property comprising a part of the Property that become worn or obsolete, provided that such personal property is replaced with other personal property at least equal in value to the replaced personal property, free from any title retention device, security agreement or other encumbrance. Such replacement of personal property will be deemed subject to the security interest created by this Security Instrument. Mortgagor will not partition or subdivide the Property without Lender’s prior written consent. Lender or Lender's agents may, at Lender's option, enter the Property at any reasonable time and frequency for the purpose of inspecting, valuing, or appraising the Property. Lender will give Mortgagor notice at the time of or before an on-site inspection, valuation, or appraisal for on-going due diligence or otherwise specifying a reasonable purpose. Any inspection, valuation or appraisal of the Property will be entirely for Lender’s benefit and Mortgagor will in no way rely on Lender’s inspection, valuation or appraisal for its own purpose, except as otherwise provided by law. 12. AUTHORITY TO PERFORM. If Mortgagor fails to perform any duty or any of the covenants contained in this Security Instrument, Lender may, without notice, perform or cause them to be performed. Mortgagor appoints Lender as attorney in fact to sign Mortgagor’s name or pay any amount necessary for performance. Lender’s right to perform for Mortgagor will not create an obligation to perform, and Lender’s failure to perform will not preclude Lender from exercising any of Lender’s other rights under the law or this Security Instrument. If any construction on the Property is discontinued or not carried on in a reasonable manner, Lender may take all steps necessary to protect Lender’s security interest in the Property, including completion of the construction. 13. ASSIGNMENT OF LEASES AND RENTS. Mortgagor absolutely, unconditionally, irrevocably and immediately assigns, grants, bargains, conveys and mortgages to Lender all the right, title and interest in the following (Property). A. Existing or future leases, subleases, licenses, guaranties and any other written or verbal agreements for the use and occupancy of the Property, including but not limited to any extensions, renewals, modifications or replacements (Leases). B. Rents, issues and profits, including but not limited to security deposits, minimum rents, percentage rents, additional rents, common area maintenance charges, parking charges, real estate taxes, other applicable taxes, insurance premium contributions, liquidated damages following default, cancellation premiums, "loss of rents" insurance, guest receipts, revenues, royalties, proceeds, bonuses, accounts, contract rights, general intangibles, and all rights and claims which Mortgagor may have that in any way pertain to or are on account of the use or occupancy of the whole or any part of the Property (Rents). In the event any item listed as Leases or Rents is determined to be personal property, this Assignment will also be regarded as a security agreement. Mortgagor will promptly provide Lender with copies of the Leases and will certify these Leases are true and correct copies. The existing Leases will be provided on execution of the Assignment, and all future Leases and any other information with respect to these Leases will be provided immediately after they are executed. Mortgagor will require all of the Property’s existing and future tenants to pay Rents as they become due directly to Lender. Amounts collected will be applied at Lender’s discretion to the Secured Debts, the costs of managing, protecting and preserving the Property, and other necessary expenses. Mortgagor agrees that the Security Instrument is immediately effective between Mortgagor and Lender and as to third parties. This Security Instrument applies when it secures an extension of credit made primarily for an agricultural purpose where Mortgagor is either a natural person or a farm or ranching business corporation. As long as this Assignment is in effect, Mortgagor warrants and represents that no default exists under the Leases, and the parties subject to the Leases have not violated any applicable law on leases, licenses and landlords and tenants. Mortgagor, at its sole cost and expense, will keep, observe and perform, and require all other parties to the Leases to comply with the Leases and any applicable law. If Mortgagor or any party to the Lease defaults or fails to observe any applicable law, Mortgagor will promptly notify Lender. If Mortgagor neglects or refuses to enforce compliance with the terms of the Leases, then Lender may, at Lender’s option, enforce compliance. Mortgagor will not sublet, modify, extend, cancel, or otherwise alter the Leases, or accept the surrender of the Property covered by the Leases (unless the Leases so require) without Lender’s consent. Mortgagor will not assign, compromise, subordinate or encumber the Leases and Rents without Lender’s prior written consent. Lender does not assume or become liable for the Property’s maintenance, depreciation, or other losses or damages when Lender acts to manage, protect or preserve the Property, except for losses and damages due to Lender’s gross negligence or intentional torts. Otherwise, Mortgagor will indemnify Lender and hold Lender harmless for all liability, loss or damage that Lender may incur when Lender opts to exercise any of its remedies against any party obligated under the Leases. This section does not secure any extension of credit made primarily for personal, family or household purposes. 14. DEFAULT. Mortgagor will be in default if any of the following events (known separately and collectively as an Event of Default) occur: A. Payments. Mortgagor fails to make a payment in full when due. B. Insolvency or Bankruptcy. The death, dissolution or insolvency of, appointment of a receiver by or on behalf of, application of any debtor relief law, the assignment for the benefit of creditors by or on behalf of, the voluntary or involuntary termination of existence by, or the commencement of any proceeding under any present or future federal or state insolvency, bankruptcy, reorganization, composition or debtor relief law by or against Mortgagor, Borrower, or any co-signer, endorser, surety or guarantor of this Security Instrument or any other obligations Borrower has with Lender. C. Death or Incompetency. Mortgagor dies or is declared legally incompetent. D. Failure to Perform. Mortgagor fails to perform any condition or to keep any promise or covenant of this Security Instrument. E. Other Documents. A default occurs under the terms of any other document relating to the Secured Debts. F. Other Agreements. Mortgagor is in default on any other debt or agreement Mortgagor has with Lender. G. Misrepresentation. Mortgagor makes any verbal or written statement or provides any financial information that is untrue, inaccurate, or conceals a material fact at the time it is made or provided. H. Judgment. Mortgagor fails to satisfy or appeal any judgment against Mortgagor. I. Forfeiture. The Property is used in a manner or for a purpose that threatens confiscation by a legal authority. J. Name Change. Mortgagor changes Mortgagor's name or assumes an additional name without notifying Lender before making such a change. K. Property Transfer. Mortgagor transfers all or a substantial part of Mortgagor's money or property. This condition of default, as it relates to the transfer of the Property, is subject to the restrictions contained in the DUE ON SALE section. L. Property Value. Lender determines in good faith that the value of the Property has declined or is impaired. M. Erosion. Any loan proceeds are used for a purpose that will contribute to excessive erosion of highly erodible land or to the conversion of wetlands to produce or to make possible the production of an agricultural commodity, as provided by 7 CFR Part 12. N. Insecurity. Lender determines in good faith that a material adverse change has occurred in Mortgagor's financial condition from the conditions set forth in Mortgagor's most recent financial statement before the date of this Security Instrument or that the prospect for payment or performance of the Secured Debts is impaired for any reason. 15. REMEDIES. On or after the occurrence of an Event of Default, Lender may use any and all remedies Lender has under state or federal law or in any document relating to the Secured Debts. Any amounts advanced on Mortgagor's behalf will be immediately due and may be added to the balance owing under the Secured Debts. Lender may make a claim for any and all insurance benefits or refunds that may be available on Mortgagor's default. Subject to any right to cure, required time schedules or any other notice rights Mortgagor may have under federal and state law, Lender may make all or any part of the amount owing by the terms of the Secured Debts immediately due and foreclose this Security Instrument in a manner provided by law upon the occurrence of an Event of Default or anytime thereafter. All remedies are distinct, cumulative and not exclusive, and Lender is entitled to all remedies provided at law or equity, whether or not expressly set forth. The acceptance by Lender of any sum in payment or partial payment on the Secured Debts after the balance is due or is accelerated or after foreclosure proceedings are filed will not constitute a waiver of Lender's right to require full and complete cure of any existing default. By not exercising any remedy, Lender does not waive Lender's right to later consider the event a default if it continues or happens again. 16. COLLECTION EXPENSES AND ATTORNEYS' FEES. On or after the occurrence of an Event of Default, to the extent permitted by law, Mortgagor agrees to pay all expenses of collection, enforcement, valuation, appraisal or protection of Lender's rights and remedies under this Security Instrument or any other document relating to the Secured Debts. Mortgagor agrees to pay expenses for Lender to inspect, valuate, appraise and preserve the Property. Expenses include, but are not limited to, attorneys' fees, court costs and other legal expenses. These expenses are due and payable immediately. If not paid immediately, these expenses will bear interest from the date of payment until paid in full at the highest interest rate in effect as provided for in the terms of the Secured Debts. In addition, to the extent permitted by the United States Bankruptcy Code, Mortgagor agrees to pay the reasonable attorneys' fees incurred by Lender to protect Lender's rights and interests in connection with any bankruptcy proceedings initiated by or against Mortgagor. 17. ENVIRONMENTAL LAWS AND HAZARDOUS SUBSTANCES. As used in this section, (1) Environmental Law means, without limitation, the Comprehensive Environmental Response, Compensation and Liability Act (CERCLA, 42 U.S.C. 9601 et seq.), all other federal, state and local laws, regulations, ordinances, court orders, attorney general opinions or interpretive letters concerning the public health, safety, welfare, environment or a hazardous substance; and (2) Hazardous Substance means any toxic, radioactive or hazardous material, waste, pollutant or contaminant which has characteristics which render the substance dangerous or potentially dangerous to the public health, safety, welfare or environment. The term includes, without limitation, any substances defined as "hazardous material," "toxic substance," "hazardous waste," "hazardous substance," or "regulated substance" under any Environmental Law. Mortgagor represents, warrants and agrees that: A. Except as previously disclosed and acknowledged in writing to Lender, no Hazardous Substance has been, is, or will be located, transported, manufactured, treated, refined, or handled by any person on, under or about the Property, except in the ordinary course of business and in strict compliance with all applicable Environmental Law. B. Except as previously disclosed and acknowledged in writing to Lender, Mortgagor has not and will not cause, contribute to, or permit the release of any Hazardous Substance on the Property. C. Mortgagor will immediately notify Lender if (1) a release or threatened release of Hazardous Substance occurs on, under or about the Property or migrates or threatens to migrate from nearby property; or (2) there is a violation of any Environmental Law concerning the Property. In such an event, Mortgagor will take all necessary remedial action in accordance with Environmental Law. D. Except as previously disclosed and acknowledged in writing to Lender, Mortgagor has no knowledge of or reason to believe there is any pending or threatened investigation, claim, or proceeding of any kind relating to (1) any Hazardous Substance located on, under or about the Property; or (2) any violation by Mortgagor or any tenant of any Environmental Law. Mortgagor will immediately notify Lender in writing as soon as Mortgagor has reason to believe there is any such pending or threatened investigation, claim, or proceeding. In such an event, Lender has the right, but not the obligation, to participate in any such proceeding including the right to receive copies of any documents relating to such proceedings. E. Except as previously disclosed and acknowledged in writing to Lender, Mortgagor and every tenant have been, are and will remain in full compliance with any applicable Environmental Law. F. Except as previously disclosed and acknowledged in writing to Lender, there are no underground storage tanks, private dumps or open wells located on or under the Property and no such tank, dump or well will be added unless Lender first consents in writing. G. Mortgagor will regularly inspect the Property, monitor the activities and operations on the Property, and confirm that all permits, licenses or approvals required by any applicable Environmental Law are obtained and complied with. H. Mortgagor will permit, or cause any tenant to permit, Lender or Lender's agent to enter and inspect the Property and review all records at any reasonable time to determine (1) the existence, location and nature of any Hazardous Substance on, under or about the Property; (2) the existence, location, nature, and magnitude of any Hazardous Substance that has been released on, under or about the Property; or (3) whether or not Mortgagor and any tenant are in compliance with applicable Environmental Law. I. Upon Lender's request and at any time, Mortgagor agrees, at Mortgagor's expense, to engage a qualified environmental engineer to prepare an environmental audit of the Property and to submit the results of such audit to Lender. The choice of the environmental engineer who will perform such audit is subject to Lender's approval. J. Lender has the right, but not the obligation, to perform any of Mortgagor's obligations under this section at Mortgagor's expense. K. As a consequence of any breach of any representation, warranty or promise made in this section, (1) Mortgagor will indemnify and hold Lender and Lender's successors or assigns harmless from and against all losses, claims, demands, liabilities, damages, cleanup, response and remediation costs, penalties and expenses, including without limitation all costs of litigation and attorneys' fees, which Lender and Lender's successors or assigns may sustain; and (2) at Lender's discretion, Lender may release this Security Instrument and in return Mortgagor will provide Lender with collateral of at least equal value to the Property without prejudice to any of Lender's rights under this Security Instrument. L. Notwithstanding any of the language contained in this Security Instrument to the contrary, the terms of this section will survive any foreclosure or satisfaction of this Security Instrument regardless of any passage of title to Lender or any disposition by Lender of any or all of the Property. Any claims and defenses to the contrary are hereby waived. 18. CONDEMNATION. Mortgagor will give Lender prompt notice of any pending or threatened action by private or public entities to purchase or take any or all of the Property through condemnation, eminent domain, or any other means. Mortgagor authorizes Lender to intervene in Mortgagor's name in any of the above described actions or claims. Mortgagor assigns to Lender the proceeds of any award or claim for damages connected with a condemnation or other taking of all or any part of the Property. Such proceeds will be considered payments and will be applied as provided in this Security Instrument. This assignment of proceeds is subject to the terms of any prior mortgage, deed of trust, security agreement or other lien document. 19. ESCROW FOR TAXES AND INSURANCE. Mortgagor will not be required to pay to Lender funds for taxes and insurance in escrow. 20. WAIVER OF APPRAISEMENT. Appraisal of the Property is waived or not waived at Lender's option, which shall be exercised before or at the time judgment is entered in any foreclosure. 21. USE OF PROPERTY. Mortgagor shall not use or occupy the Property in any manner that would constitute a violation of any state and/or federal laws involving controlled substances, even in a jurisdiction that allows such use by state or local law or ordinance. In the event that Mortgagor becomes aware of such a violation, Mortgagor shall take all actions allowed by law to terminate the violating activity. In addition to all other indemnifications, obligations, rights and remedies contained herein, if the Lender and/or its respective directors, officers, employees, agents and attorneys (each an "Indemnitee") is made a party defendant to any litigation or any claim is threatened or brought against such Indemnitee concerning this Security Instrument or the related property or any part thereof or therein or concerning the construction, maintenance, operation or the occupancy or use of such property, then the Mortgagor shall (to the extent permitted by applicable law) indemnify, defend and hold each Indemnitee harmless from and against all liability by reason of said litigation or claims, including attorneys' fees and expenses incurred by such Indemnitee in connection with any such litigation or claim, whether or not any such litigation or claim is prosecuted to judgment. To the extent permitted by applicable law, the within indemnification shall survive payment of the Secured Debt, and/or any termination, release or discharge executed by the Lender in favor of the Mortgagor. Violation of this provision is a material breach of this Security Instrument and thereby constitutes a default under the terms and provisions of this Security Instrument. 22. CROPS; TIMBER TO BE CUT; MINERALS; RENTS, ISSUES, AND PROFITS. Mortgagor gives to Lender a security interest in all crops, timber including timber to be cut now or at any time in the future, and minerals located on the Property as well as all rents, issues and profits of them including, but not limited to, all Conservation Reserve Program (CRP) and Payment in Kind (PIK) payments and similar governmental programs (all of which shall also be included in the term Property). This Security Instrument constitutes a financing statement and is to be recorded in the real estate records. 23. APPLICABLE LAW. This Security Instrument is governed by the laws of Oklahoma, the United States of America, and to the extent required, by the laws of the jurisdiction where the Property is located, except to the extent such state laws are preempted by federal law. 24. JOINT AND SEVERAL LIABILITY AND SUCCESSORS. Each Mortgagor's obligations under this Security Instrument are independent of the obligations of any other Mortgagor. Lender may sue each Mortgagor severally or together with any other Mortgagor. Lender may release any part of the Property and Mortgagor will still be obligated under this Security Instrument for the remaining Property. Mortgagor agrees that Lender and any party to this Security Instrument may extend, modify or make any change in the terms of this Security Instrument or any evidence of debt without Mortgagor's consent. Such a change will not release Mortgagor from the terms of this Security Instrument. The duties and benefits of this Security Instrument will bind and benefit the successors and assigns of Lender and Mortgagor. 25. AMENDMENT, INTEGRATION AND SEVERABILITY. This Security Instrument may not be amended or modified by oral agreement. No amendment or modification of this Security Instrument is effective unless made in writing. This Security Instrument and any other documents relating to the Secured Debts are the complete and final expression of the agreement. If any provision of this Security Instrument is unenforceable, then the unenforceable provision will be severed and the remaining provisions will still be enforceable. 26. INTERPRETATION. Whenever used, the singular includes the plural and the plural includes the singular. The section headings are for convenience only and are not to be used to interpret or define the terms of this Security Instrument. 27. NOTICE, ADDITIONAL DOCUMENTS AND RECORDING FEES. Unless otherwise required by law, any notice will be given by delivering it or mailing it by first class mail to the appropriate party's address listed in the DATE AND PARTIES section, or to any other address designated in writing. Notice to one Mortgagor will be deemed to be notice to all Mortgagors. Mortgagor will inform Lender in writing of any change in Mortgagor's name, address or other application information. Mortgagor will provide Lender any other, correct and complete information Lender requests to effectively mortgage or convey the Property. Mortgagor agrees to pay all expenses, charges and taxes in connection with the preparation and recording of this Security Instrument. Mortgagor agrees to sign, deliver, and file any additional documents or certifications that Lender may consider necessary to perfect, continue, and preserve Mortgagor's obligations under this Security Instrument and to confirm Lender's lien status on any Property. and Mortgagor agrees to pay all expenses, charges and taxes in connection with the preparation and recording thereof. Time is of the essence. SIGNATURES. By signing, Mortgagor agrees to the terms and covenants contained in this Security Instrument. Mortgagor also acknowledges receipt of a copy of this Security Instrument. MORTGAGOR: CHARLES W. STEWART Date 2-17-20 MARY E. STEWART Date 7-17-2020 ACKNOWLEDGMENT. STATE OF OKLAHOMA, COUNTY OF BLAINE ss. This instrument was acknowledged before me this 17th day of July 2020 by CHARLES W. STEWART, spouse of MARY E. STEWART, and MARY E. STEWART, spouse of CHARLES W. STEWART. My commission expires: December 6, 2023 Commission number: (Notary Public) JEAN HOWARD NOTARY PUBLIC State of Oklahoma Blaine County Jean Howard Commission #02019789 My Comm. Expires 12-6-22 Space Above This Line For Recording Data When recorded return to Loan Department, Community State Bank of Canton, P.O. Box 549, Canton, OK 73724-0549 MORTGAGE, ASSIGNMENT OF PRODUCTION, SECURITY AGREEMENT, FIXTURE FILING, AND FINANCING STATEMENT (With Future Advance Clause) A carbon, photographic, facsimile, or other reproduction of this instrument is sufficient as a financing statement. This instrument contains after-acquired property provisions, secures payments of future advances, and covers proceeds of collateral. This instrument covers minerals and other substances of value which may be extracted from the earth (including without limitation oil and gas), and the Accounts related thereto, which will be financed at the wellheads or mineheads of the wells or mines located on the properties described below herein in this instrument (or referenced herein as Exhibit "A"). This instrument is to be filed for record, among other places, in the real estate or comparable records of the county or counties referenced herein and such filing shall serve, among other purposes, as an "as extracted collateral" filing. DATE AND PARTIES. The date of this Mortgage, Assignment of Production, Security Agreement, Fixture Filing, and Financing Statement (Security Instrument) is July 17, 2020. The parties and their addresses are: MORTGAGOR: CHARLES W. STEWART Spouse of MARY E. STEWART 7891 CO. RD. 500 ALINE, OK 73716 MARY E. STEWART Spouse of CHARLES W. STEWART 7891 CO. RD. 500 ALINE, OK 73716 LENDER: COMMUNITY STATE BANK OF CANTON Organized and existing under the laws of Oklahoma 101 W. Main PO Box 549 Canton, OK 73724-0549 1. DEFINITIONS. For the purposes of this document, the following term has the following meaning. A. Loan. "Loan" refers to this transaction generally, including obligations and duties arising from the terms of all documents prepared or submitted for this transaction. 2. CONVEYANCE. Mortgagor does hereby grant, bargain, assign, transfer, pledge, hypothecate, convey and mortgage to Lender, with the power of sale, and grant a continuing security interest to Lender in, all right, title, interest now or at any time hereafter vested in Mortgagor in and to the following described properties and mineral interests (collectively known as the "Property") and more particularly described as follows: A. Descriptions of the Mineral Interests and Underlying Leases. The mineral interests (including royalty interests), and underlying leases if any, described herein cover, affect and relate to the following real property situated in Woods County, State of Oklahoma: All of Borrower's undivided interest in oil, gas and other minerals (including all participating and non-participating interests) in, under and that may be produced from the following lands: The Southwest Quarter (SW/4) of Section Twenty-six (26), Township Twenty-four (24) North, Range Fourteen (14) W1M, Woods County, Oklahoma The Southeast Quarter of the Northwest Quarter (SE/4 NW/4), the Southwest Quarter of the Northeast Quarter (SW/4 NE/4), the Northwest Quarter of the Southeast Quarter (NW/4SE/4), and the Southwest Quarter of the Southeast Quarter (SW/4SE/4) of Section Thirty-four (34), Township Twenty-four (24) North, Range Thirteen (13) W1M, Woods County, Oklahoma; The East Half of the Northeast Quarter (W/2 NE/4) of Section Thirty-five (35), Township Twenty-four (24) North, Range Thirteen (13) W1M, Woods County, Oklahoma; The West Half of the Northeast Quarter (W/2 NE/4) of Section Thirty-five (35), Township Twenty-four (24) North, Range Thirteen (13) W1M, Woods County, Oklahoma; together with any and all oil, gas and other mineral leases, all extensions, renewals and substitutions thereof, now owned, hereafter acquired or reacquired, collectively known as the "Hydrocarbons Property"; B. Without limitation of the foregoing, all other right, title and interest of Mortgagor (whether now owned or hereafter acquired by operation of law or otherwise) of whatever kind or character (including, without limitation, mineral interests, royalty interests, oil, gas and mineral leases if any, and other interests in oil, gas and other minerals) in and to the lands which are described or referred to herein even though Mortgagor's interest may be incorrectly described or omitted; C. All oil, gas, casinghead gas, gaseous hydrocarbons, condensate, distillate, liquid hydrocarbons and other minerals extracted, as extracted, severed, produced, saved or mined from the Hydrocarbons Property through regular production or enhanced recovery techniques, and further including all products extracted, processed or otherwise refined therefrom - all of which are collectively known as the "Hydrocarbons"; D. All of Mortgagor's interests, rights, mineral interests (including royalty interests), easements, rights-of-way, licenses and leases, servitudes, tenements, hereditaments, appurtenances, including but not limited to, any and all of the following additional property, things and goods, whether now or hereafter located on, relating to, arising from or affixed or attributable to, all or any part of the Hydrocarbons Property including: (1) All, existing and future, drilling units, spacing units, production units, pooled units, proration orders, Hydrocarbons formations on, under, relating or attributed to, the Hydrocarbons Property; (2) All unit agreements, unit operating agreements, contribution agreements, operating agreements, joint operating agreements, farm-in agreements, farm-out agreements, franchises, licenses, privileges, orders, permits and applications relating to the Hydrocarbons Property; (3) All agreements relating to connection, purchase, marketing, sales, handling, processing, transportation, exchange and storage, and all other agreements and rights that Mortgagor has, or may acquire, whether by consent, operation of law, governmental order or judicial decree relating to the Hydrocarbons Property; and (4) All, existing and future, production of Hydrocarbons from the Hydrocarbons Property, whether in place, as extracted, extracted, severed, in storage or in transit, whether held in suspense by or with any purchaser, operator or third party, together with all present and future, royalties, rents, profits, increases, proceeds, cash accounts, contract rights, improvements, and products, arising out of, or relating to, the Hydrocarbons Property. This Security Instrument will remain in effect forever until both the Secured Debts have been satisfied and all underlying agreements have been terminated and released in writing by Lender. 3. GRANT OF SECURITY INTEREST. Mortgagor further grants a continuing security interest in and to all rights, titles and interests in existing and future "As Extracted Collateral", "Accounts", "General Intangibles", "Proceeds", and all "Goods" (except "Consumer Goods"), relating to, or associated with, the Hydrocarbons Property. These terms have the same meaning as defined by the Oklahoma Uniform Commercial Code (Oklahoma "UCC"). This security interest is additional collateral security under this Security Instrument, and this collateral security is included, by reference, into the definition of "Property" defined above. 4. ASSIGNMENT OF PRODUCTION ACCOUNTS; ACCOUNTS AND PROCEEDS. As additional collateral security for the Secured Debts, Mortgagor further assigns, pledges and transfers to Lender and grants a continuing security interest to Lender in all of Mortgagor's interest in the Production (hereafter defined). The term "Production" is defined to include, but is not limited to, all "As Extracted Collateral" and Hydrocarbons extracted, severed or produced from, accruing from or attributable to the Hydrocarbons Property, including all Proceeds of such Production and all payments in lieu of production, exchanges and profits, and all rights with respect to Proceeds or profits to which Mortgagor is entitled by virtue of ownership of the Property (collectively known as "Production Proceeds"). Lender shall have the immediate and on-going right under this Security Instrument to collect and receive all Production Proceeds. Upon the occurrence of an Event of Default (hereinafter defined), Mortgagor covenants to direct, and cause, all Purchasers to immediately pay all Production Proceeds to Lender at such place as Lender may direct. Mortgagor agrees to execute and deliver to the Purchasers such transfer orders, division orders, indemnifications or other documents as necessary and prudent to effectuate this Assignment of Production and the intention of this Security instrument. If under any gas sales agreements or products sales contract, other than division orders or transfer orders, any Production Proceeds are required to be paid to Mortgagor so that undor such existing agreements payment cannot be made of such Production Proceeds to Lender, Mortgagor's interest in all Production Proceeds under such agreements and in all other Production Proceeds which for any reason may be paid to Mortgagor shall, when received by Mortgagor, constitute trust funds in the Mortgagor's hands and shall be immediately paid over to Lender. All Purchasers of the Production are hereby authorized and directed to pay Mortgagor's interest in the Production directly to Lender and to continue such payments until the purchasers of Production ("Purchaser") have been furnished with a release in writing and duly executed by Lender. The delivery and receipt of the Production Proceeds from Purchasers to Lender shall be a full and complete release, discharge and acquittance to the Purchasers to the extent of all sums so paid. No Purchasers shall be required to ensure the proper application by Lender of the Production Proceeds so paid to Lender. This Assignment of Production does not alter or otherwise modify the Mortgagor's obligations to fulfill, and perform under, the terms of Secured Debts and this Security Instrument. This Assignment of Production and security interest are additional collateral security under this Security Instrument and are further included, by reference, into the definition of "Property" defined above. 5. ADDITIONAL PROVISIONS UNDER ASSIGNMENT OF PRODUCTION. A. Mortgagor further appoints Lender as its attorney-in-fact with the authority to do and perform any and every act, necessary and prudent, to effectuate the terms of this Assignment of Production. This grant of attorney-in-fact by Mortgagor is with consideration, irrevocable and thereby coupled with an interest. B. Should any of the Purchasers, now or hereafter purchasing the Production, fail to make prompt payment of the Production Proceeds to Lender, Lender shall have the authority and right to charge the Purchaser, change the connection or agreements and designate another Purchaser to purchase and take such Production. C. Lender is under no obligation to enforce the collection of the Production Proceeds. D. Lender is not liable, and is absolved from all liability, for failure to collect Production Proceeds and from all other actions or omissions to act, except for Lender's gross negligence or willful misconduct. E. Lender will account to Mortgagor for the Production Proceeds that Lender actually received. The Production Proceeds received by Lender shall be applied by Lender, in its discretion, to the payment of taxes, insurance, judgments, liens, costs, attorneys' fees, accrued interest and the Secured Debt in accordance with the terms of this Security Instrument, the promissory notes and loan agreements that evidence the agreements and Secured Debts. Notwithstanding the other provisions of this Section, Lender and, to the extent that may be specified by Lender at the time, any receiver appointed at the request of Lender in judicial proceedings for the enforcement of this instrument shall have the right to receive all of the Hydrocarbons herein assigned and the proceeds therefrom after the Secured Debts have been declared due and payable and to apply all of said proceeds in accordance with the Pre-Foreclosure Remedies Section herein below. Upon any sale of the Property or any part thereof pursuant to this Security Instrument, the Hydrocarbons thereafter produced from the property so sold, and the proceeds therefrom, shall be included in such sale and shall pass to the purchaser free and clear of the assignment contained in the Assignment of Production Section herein above. 6. SECURED DEBTS AND FUTURE ADVANCES. The term "Secured Debts" includes and this Security Instrument will secure each of the following: A. Specific Debts. The following debts and all extensions, renewals, refinancings, modifications and replacements. A promissory note or other agreement, No. 1011,059.73, dated July 17, 2020, from Mortgagor to Lender, with a loan amount of $1,011,059.73. B. Future Advances. All future advances from Lender to Mortgagor under the Specific Debts executed by Mortgagor in favor of Lender after this Security Instrument. If more than one person signs this Security Instrument, each agrees that this Security Instrument will secure all future advances that are given to Mortgagor either individually or with others who may not sign this Security Instrument. All future advances are secured by this Security Instrument even though all or part may not yet be advanced. All future advances are secured as if made on the date of this Security Instrument. Nothing in this Security Instrument shall constitute a commitment to make additional or future advances in any amount. Any such commitment must be agreed to in a separate writing. C. All Debts. All present and future debts from Mortgagor to Lender, even if this Security Instrument is not specifically referenced, or if the future debt is unrelated to or of a different type than this debt. If more than one person signs this Security Instrument, each agrees that it will secure debts incurred either individually or with others who may not sign this Security Instrument. Nothing in this Security Instrument constitutes a commitment to make additional or future loans or advances. Any such commitment must be in writing. This Security Instrument will not secure any debt for which a non-possessionary, non-purchase money security interest is created in "household goods" in connection with a "consumer loan," as those terms are defined by federal law governing unfair and deceptive credit practices. This Security Instrument will not secure any debt for which a security interest is created in "margin stock" and Lender does not obtain a "statement of purpose," as defined and required by federal law governing securities. This Security Instrument will not secure any other debt if Lender, with respect to that other debt, fails to fulfill any necessary requirements or fails to conform to any limitations of the Truth in Lending Act (Regulation Z) or the Real Estate Settlement Procedures Act (Regulation X) that are required for loans secured by the Property. D. Sums Advanced. All sums advanced and expenses incurred by Lender under the terms of this Security Instrument. 7. LIMITATIONS ON CROSS-COLLATERALIZATION. The cross-collateralization clause on any existing or future loan, but not including this Loan, is void and ineffective as to this Loan, including any extension or refinancing. The Loan is not secured by a previously executed security instrument if a non-possessory, non-purchase money security interest is created in "household goods" in connection with a "consumer loan," as those terms are defined by federal law governing unfair and deceptive credit practices. The Loan is not secured by a previously executed security instrument if Lender fails to fulfill any necessary requirements or fails to conform to any limitations of the Real Estate Settlement Procedures Act, (Regulation X), that are required for loans secured by the Property or if, as a result, the other debt would become subject to Section 670 of the John Warner National Defense Authorization Act for Fiscal Year 2007. The Loan is not secured by a previously executed security instrument if Lender fails to fulfill any necessary requirements or fails to conform to any limitations of the Truth in Lending Act, (Regulation Z), that are required for loans secured by the Property. 8. PAYMENTS. Mortgagor agrees that all payments under the Secured Debts will be paid when due and in accordance with the terms of the Secured Debts and this Security Instrument. 9. WARRANTY OF TITLE. Mortgagor represents, covenants and warrants that: A. Mortgagor lawfully owns, possesses and is seized of the Property; B. The Property is unencumbered, except for encumbrances of record; C. Mortgagor has the right and authority to mortgage, assign, warrant, pledge and hypothecate the Property and grant a security interest in the Property; D. Mortgagor's types and amounts of interest (including gross and net revenue interests) in the Property are true and correct; E. Mortgagor is entitled to receive all payments and proceeds from the present and future Production from the Property; F. Mortgagor has not been prepaid for future deliveries of Production and likewise is not obligated under any "take-or-pay" clause or similar contract that commits delivery of future Production without receiving full payment of Production Proceeds for such each delivery; and G. Mortgagor will not, at any time without first obtaining Lender's written consent, assign, sell, transfer, dispose or further encumber the Property, Production or Production Proceeds, or remove or permit the removal of the Property. 10. PRIOR SECURITY INTERESTS. With regard to any other mortgage, deed of trust, security agreement or other lien document that created a prior security interest or encumbrance on the Property, Mortgagor agrees: A. To make all payments when due and to perform or comply with all covenants. B. To promptly deliver to Lender any notices that Mortgagor receives from the holder. C. Not to allow any modification or extension of, nor to request any future advances under any note or agreement secured by the lien document without Lender's prior written consent. 11. CLAIMS AGAINST TITLE. Mortgagor covenants and warrants to avoid and immediately resolve all claims against title, and specifically without limitation: A. Mortgagor will promptly pay, or cause to be paid, when due, all property taxes, severance taxes, sales taxes, assessments, levies, liens, franchise fees, license fees, and any other governmental charges which are levied, imposed or assessed against the Property or Mortgagor; B. Mortgagor will promptly pay, or cause to be paid, all encumbrances, utilities, services, operators, laborers or materialmen for labor and materials furnished in connection with the operation, development or maintenance of the Property in a manner which does not encumber or permit the Property to be encumbered by any lien other than the lien created by this Security Instrument; C. Mortgagor will comply with the terms of the Leases, if any, and keep the Leases in full force and effect, including the timely payment of lease payments, bonuses, rents, delay rentals, shut-in royalty payments and production payments; and D. Mortgagor will not temporarily abandon a well so as to cause a termination of the Leases, if any, and will not abandon any well without properly plugging and notifying governmental authorities and Lender. Lender may require Mortgagor to provide to Lender copies of all notices that such amounts are due and the receipts evidencing Mortgagor's payment. Mortgagor will defend title to the Property against any claims that would impair the lien of this Security Instrument. Mortgagor agrees to assign to Lender, as requested by Lender, any rights, claims or defenses Mortgagor may have against parties who supply labor, services or materials to maintain or improve the Property. 12. ADDITIONAL COVENANTS BY MORTGAGOR TO PERFORM. Mortgagor further represents, covenants and warrants that: A. Mortgagor will operate, or cause to operate, with prudent and ordinary care the Property in a forthcoming and diligent manner, including good repair, maintenance, necessary replacement and efficient operations; B. The Hydrocarbons Property is producing, or is capable of producing, Hydrocarbons in paying quantities in accordance with any proration order and unitization or pooling agreement; C. Mortgagor will exercise, or cause to be exercised, reasonable and ordinary care of the surface to, in and around the Hydrocarbons Property, storage, meters and pipelines, including control of noxious weeds and similar plants; D. Mortgagor will not change, or cause to be changed, the Operator of the Hydrocarbons Property or Purchasers without Lender's consent - which consent will not be unreasonably withhold; E. Mortgagor is in compliance with, and will continue to be in full compliance, with all laws, regulations, permits, orders, easements and agreements; F. Mortgagor will not commit waste, or cause waste to be committed, including the unauthorized venting or flaring of gas; G. Mortgagor will not permit the Property to become subject to, or contaminated by, any hazardous, toxic or pollutant waste, including pollution of the soil, land, water and atmosphere; H. Mortgagor will take reasonable efforts to secure the Property from tampering, damage and theft; and I. Mortgagor consents to, and authorizes, access for Lender to inspect the Property and all information which relates or pertains, directly or indirectly, to the Property whether such information is in the possession or custody of Mortgagor, Mortgagor's agents, Purchasers or operators of the Hydrocarbons Property. 13. DUE ON SALE OR ENCUMBRANCE. Lender may, at its option, declare the entire balance of the Secured Debt to be immediately due and payable upon the creation of, or contract for the creation of, any lien, encumbrance, transfer or sale of all or any part of the Property. 14. WARRANTIES AND REPRESENTATIONS. Mortgagor has the right and authority to enter into this Security Instrument. The execution and delivery of this Security Instrument will not violate any agreement governing Mortgagor or to which Mortgagor is a party. 15. PROPERTY CONDITION, ALTERATIONS, INSPECTION, VALUATION AND APPRAISAL. Mortgagor will keep the Property in good condition and make all repairs that are reasonably necessary. Mortgagor will not commit or allow any waste, impairment, or deterioration of the Property. Mortgagor will keep the Property free of noxious weeds and grasses. Mortgagor agrees that the nature of the occupancy and use will not substantially change without Lender's prior written consent. Mortgagor will not permit any change in any license, restrictive covenant or easement without Lender's prior written consent. Mortgagor will notify Lender of all demands, proceedings, claims, and actions against Mortgagor, and of any loss or damage to the Property. No portion of the Property will be removed, demolished or materially altered without Lender's prior written consent except that Mortgagor has the right to remove items of personal property comprising a part of the Property that become worn or obsolete, provided that such personal property is replaced with other personal property at least equal in value to the replaced personal property, free from any title retention device, security agreement or other encumbrance. Such replacement of personal property will be deemed subject to the security interest created by this Security Instrument. Lender or Lender's agents may, at Lender's option, enter the Property at any reasonable time and frequency for the purpose of inspecting, valuing, or appraising the Property. Lender will give Mortgagor notice at the time of or before an on-site inspection, valuation, or appraisal for on-going due diligence or otherwise specifying a reasonable purpose. Any inspection, valuation or appraisal of the Property will be entirely for Lender's benefit and Mortgagor will in no way rely on Lender's inspection, valuation or appraisal for its own purpose, except as otherwise provided by law. 16. AUTHORITY TO PERFORM. If Mortgagor fails to perform any duty or any of the covenants contained in this Security Instrument, Lender may, without notice, perform or cause them to be performed. Mortgagor appoints Lender as attorney in fact to sign Mortgagor's name or pay any amount necessary for performance. Lender's right to perform for Mortgagor will not create an obligation to perform, and Lender's failure to perform will not preclude Lender from exercising any of Lender's other rights under the law or this Security Instrument. If any construction on the Property is discontinued or not carried on in a reasonable manner, Lender may take all steps necessary to protect Lender's security interest in the Property, including completion of the construction. 17. DEFAULT. Mortgagor will be in default if any of the following events (known separately and collectively as an Event of Default) occur: A. Payments. Mortgagor fails to make a payment in full when due. B. Insolvency or Bankruptcy. The death, dissolution or insolvency of, appointment of a receiver by or on behalf of, application of any debtor relief law, the assignment for the benefit of creditors by or on behalf of, the voluntary or involuntary termination of existence by, or the commencement of any proceeding under any present or future federal or state insolvency, bankruptcy, reorganization, composition or debtor relief law by or against Mortgagor, Borrower, or any co-signer, endorser, surety or guarantor of this Security Instrument or any other obligations Borrower has with Lender. C. Death or Incompetency. Mortgagor dies or is declared legally incompetent. D. Failure to Perform. Mortgagor fails to perform any condition or to keep any promise or covenant of this Security Instrument. E. Other Documents. A default occurs under the terms of any other transaction document. F. Other Agreements. Mortgagor is in default on any other debt or agreement Mortgagor has with Lender. G. Misrepresentation. Mortgagor makes any verbal or written statement or provides any financial information that is untrue, inaccurate, or conceals a material fact at the time it is made or provided. H. Judgment. Mortgagor fails to satisfy or appeal any judgment against Mortgagor. I. Forfeiture. The Property is used in a manner or for a purpose that threatens confiscation by a legal authority. J. Name Change. Mortgagor changes Mortgagor's name or assumes an additional name without notifying Lender before making such a change. K. Property Transfer. Mortgagor transfers all or a substantial part of Mortgagor's money or property. This condition of default, as it relates to the transfer of the Property, is subject to the restrictions contained in the DUE ON SALE section. L. Property Value. Lender determines in good faith that the value of the Property has declined or is impaired. M. Erosion. Any loan proceeds are used for a purpose that will contribute to excessive erosion of highly erodible land or to the conversion of wetlands to produce or to make possible the production of an agricultural commodity, as provided by 7 CFR Part 12. N. Insecurity. Lender determines in good faith that a material adverse change has occurred in Mortgagor's financial condition from the conditions set forth in Mortgagor's most recent financial statement before the date of this Security Instrument or that the prospect for payment or performance of the Secured Debts is impaired for any reason. O. Material Change in Proration. Any material change in the proration orders affecting the Property which Lender believes in good faith will prejudicially affect Lender's lien and security interest in the Property. 18. PRE-FORECLOSURE REMEDIES. If an Event of Default shall occur and be continuing, Lender is authorized, prior or subsequent to the institution of any foreclosure proceedings, to enter upon the Property, or any part thereof, and to take possession of the Property and all books and records relating thereto, and to exercise without interference from Mortgagor any and all rights which Mortgagor has with respect to the management, possession, operation, protection or preservation of the Property. If necessary to obtain the possession provided for above, Lender may invoke any and all remedies to dispossess Mortgagor. All reasonable costs, expenses and liabilities of every character incurred by Lender in managing, operating, maintaining, protecting or preserving the Property shall constitute a demand obligation (which obligation Mortgagor hereby expressly promises to pay) owing by Mortgagor to Lender and shall bear interest from date of expenditure until paid at the statutory rate of interest under Oklahoma law, all of which shall constitute a portion of the Secured Debts and shall be secured by this Security Instrument and by any other instrument securing the Secured Debts. In connection with any action taken by Lender pursuant to this Section, LENDER SHALL NOT BE LIABLE FOR ANY LOSS SUSTAINED BY MORTGAGOR RESULTING FROM ANY ACT OR OMISSION OF LENDER (INCLUDING LENDER'S OWN NEGLIGENCE) IN MANAGING THE PROPERTY UNLESS SUCH LOSS IS CAUSED BY THE GROSS NEGLIGENCE, WILLFUL MISCONDUCT OR BAD FAITH OF LENDER, nor shall Lender be obligated to perform or discharge any obligation, duty or liability of Mortgagor arising under any agreement forming a part of the Property or arising under any permitted encumbrance or otherwise arising. Mortgagor hereby assents to, ratifies and confirms any and all proper and legal actions of Lender with respect to the Property taken under the foregoing provision. 19. REMEDIES. On or after the occurrence of an Event of Default, Lender may use any and all remedies Lender has under state or federal law or in any document relating to the Secured Debts. Any amounts advanced on Mortgagor's behalf will be immediately due and may be added to the balance owing under the Secured Debts. Lender may make a claim for any and all insurance benefits or refunds that may be available on Mortgagor's default. Subject to any required time schedules or any other notice rights Mortgagor may have under federal and state law, Lender may make all or any part of the amount owing by the terms of the Secured Debts immediately due and foreclose this Security Instrument in a manner provided by law upon the occurrence of an Event of Default or anytime thereafter. After the occurrence of an Event of Default, Lender may proceed by a suit or suits in equity or at law, whether for a foreclosure hereunder, or for the specific performance of any covenant or agreement herein contained or in aid of the execution of any power herein granted, or for the appointment of a receiver pending any foreclosure hereunder or the sale of the Property, or for the enforcement of any other appropriate legal or equitable remedy. In addition to all other remedies herein provided for, Mortgagor agrees that after an Event of Default has occurred, Lender shall, as a matter of right, be entitled to the appointment of a receiver or receivers to be designated by Lender for all or any part of the Property whether such receivership be incident to a proposed sale of such properties (or any of them) or otherwise, and Mortgagor does hereby consent to the appointment of such receiver or receivers. All remedies are distinct, cumulative and not exclusive, and Lender is entitled to all remedies provided at law or equity, whether or not expressly set forth. The acceptance by Lender of any sum in payment or partial payment on the Secured Debts after the balance is due or is accelerated or after foreclosure proceedings are filed will not constitute a waiver of Lender's right to require full and complete cure of any existing default. By not exercising any remedy, Lender does not waive Lender's right to later consider the event a default if it continues or happens again. 20. INDEMNIFICATION. Lender shall not be liable for any act or omission to act in administering, managing, operating or controlling the Property, including the collection and application of any Production Proceeds. Lender shall be indemnified by Mortgagor for any assertion or claim by a third party arising out of Lender's actions or omissions under the terms of this Security Agreement and protecting its lien and security interests in the Property. 21. COLLECTION EXPENSES AND ATTORNEYS' FEES. On or after the occurrence of an Event of Default, to the extent permitted by law, Mortgagor agrees to pay all expenses of collection, enforcement, valuation, appraisal or protection of Lender's rights and remedies under this Security Instrument or any other document relating to the Secured Debts. Mortgagor agrees to pay expenses for Lender to inspect, valuate, appraise and preserve the Property. Expenses include, but are not limited to, attorneys' fees, court costs and other legal expenses. These expenses are due and payable immediately. If not paid immediately, these expenses will bear interest from the date of payment until paid in full at the highest interest rate in effect as provided for in the terms of the Secured Debts. In addition, to the extent permitted by the United States Bankruptcy Code, Mortgagor agrees to pay the reasonable attorneys' fees incurred by Lender to protect Lender's rights and interests in connection with any bankruptcy proceedings initiated by or against Mortgagor. 22. ENVIRONMENTAL LAWS AND HAZARDOUS SUBSTANCES. As used in this section, (1) Environmental Law means, without limitation, the Comprehensive Environmental Response, Compensation and Liability Act (CERCLA, 42 U.S.C. 9601 et seq.), all other federal, state and local laws, regulations, ordinances, court orders, attorney general opinions or interpretive letters concerning the public health, safety, welfare, environment or a hazardous substance; and (2) Hazardous Substance means any toxic, radioactive or hazardous material, waste, pollutant or contaminant which has characteristics which render the substance dangerous or potentially dangerous to the public health, safety, welfare or environment. The term includes, without limitation, any substances defined as "hazardous material," "toxic substance," "hazardous waste," "hazardous substance," or "regulated substance" under any Environmental Law. Mortgagor represents, warrants and agrees that: A. Except as previously disclosed and acknowledged in writing to Lender, no Hazardous Substance has been, is, or will be located, transported, manufactured, treated, refined, or handled by any person on, under or about the Property, except in the ordinary course of business and in strict compliance with all applicable Environmental Law. B. Except as previously disclosed and acknowledged in writing to Lender, Mortgagor has not and will not cause, contribute to, or permit the release of any Hazardous Substance on the Property. C. Mortgagor will immediately notify Lender if (1) a release or threatened release of Hazardous Substance occurs on, under or about the Property or migrates or threatens to migrate from nearby property; or (2) there is a violation of any Environmental Law concerning the Property. In such an event, Mortgagor will take all necessary remedial action in accordance with Environmental Law. D. Except as previously disclosed and acknowledged in writing to Lender, Mortgagor has no knowledge of or reason to believe there is any pending or threatened investigation, claim, or proceeding of any kind relating to (1) any Hazardous Substance located on, under or about the Property; or (2) any violation by Mortgagor or any tenant of any Environmental Law. Mortgagor will immediately notify Lender in writing as soon as Mortgagor has reason to believe there is any such pending or threatened investigation, claim, or proceeding. In such an event, Lender has the right, but not the obligation, to participate in any such proceeding including the right to receive copies of any documents relating to such proceedings. E. Except as previously disclosed and acknowledged in writing to Lender, Mortgagor and every tenant have been, are and will remain in full compliance with any applicable Environmental Law. F. Except as previously disclosed and acknowledged in writing to Lender, there are no underground storage tanks, private dumps or open wells located on or under the Property and no such tank, dump or well will be added unless Lender first consents in writing. G. Mortgagor will regularly inspect the Property, monitor the activities and operations on the Property, and confirm that all permits, licenses or approvals required by any applicable Environmental Law are obtained and complied with. H. Mortgagor will permit, or cause any tenant to permit, Lender or Lender's agent to enter and inspect the Property and review all records at any reasonable time to determine (1) the existence, location and nature of any Hazardous Substance on, under or about the Property; (2) the existence, location, nature, and magnitude of any Hazardous Substance that has been released on, under or about the Property; or (3) whether or not Mortgagor and any tenant are in compliance with applicable Environmental Law. I. Upon Lender's request and at any time, Mortgagor agrees, at Mortgagor's expense, to engage a qualified environmental engineer to prepare an environmental audit of the Property and to submit the results of such audit to Lender. The choice of the environmental engineer who will perform such audit is subject to Lender's approval. J. Lender has the right, but not the obligation, to perform any of Mortgagor’s obligations under this section at Mortgagor’s expense. K. As a consequence of any breach of any representation, warranty or promise made in this section, (1) Mortgagor will indemnify and hold Lender and Lender’s successors or assigns harmless from and against all losses, claims, demands, liabilities, damages, cleanup, response and remediation costs, penalties and expenses, including without limitation all costs of litigation and attorneys’ fees, which Lender and Lender’s successors or assigns may sustain; and (2) at Lender’s discretion, Lender may release this Security Instrument and in return Mortgagor will provide Lender with collateral of at least equal value to the Property without prejudice to any of Lender’s rights under this Security Instrument. L. Notwithstanding any of the language contained in this Security Instrument to the contrary, the terms of this section will survive any foreclosure or satisfaction of this Security Instrument regardless of any passage of title to Lender or any disposition by Lender of any or all of the Property. Any claims and defenses to the contrary are hereby waived. 23. CONDEMNATION. Mortgagor will give Lender prompt notice of any pending or threatened action by private or public entities to purchase or take any or all of the Property through condemnation, eminent domain, or any other means. Mortgagor authorizes Lender to intervene in Mortgagor’s name in any of the above described actions or claims. Mortgagor assigns to Lender the proceeds of any award or claim for damages connected with a condemnation or other taking of all or any part of the Property. Such proceeds will be considered payments and will be applied as provided in this Security Instrument. This assignment of proceeds is subject to the terms of any prior mortgage, deed of trust, security agreement or other lien document. 24. INSURANCE. Mortgagor agrees to keep the Property insured against the risks reasonably associated with the Property. Mortgagor will maintain this insurance in the amounts Lender requires. This insurance will last until the Property is released from this Security Instrument. What Lender requires pursuant to the preceding two sentences can change during the term of the Secured Debts. Mortgagor may choose the insurance company, subject to Lender’s approval, which will not be unreasonably withheld. All insurance policies and renewals will include a standard “mortgage clause” and, where applicable, “loss payee clause.” If required by Lender, Mortgagor agrees to maintain comprehensive general liability insurance and rental loss or business interruption insurance in amounts and under policies acceptable to Lender. The comprehensive general liability insurance must name Lender as an additional insured. The rental loss or business interruption insurance must be in an amount equal to at least coverage of one year’s debt service, and required escrow account deposits (if agreed to separately in writing). Mortgagor will give Lender and the insurance company immediate notice of any loss. All insurance proceeds will be applied to restoration or repair of the Property or to the Secured Debts, at Lender’s option. If Lender acquires the Property in damaged condition, Mortgagor’s rights to any insurance policies and proceeds will pass to Lender to the extent of the Secured Debts. Mortgagor will immediately notify Lender of cancellation or termination of insurance. If Mortgagor fails to keep the Property insured, Lender may obtain insurance to protect Lender’s interest in the Property and Mortgagor will pay for the insurance on Lender’s demand. Lender may demand that Mortgagor pay for the insurance all at once, or Lender may add the insurance premiums to the balance of the Secured Debts and charge interest on it at the rate that applies to the Secured Debts. This insurance may include lesser or greater coverages than originally required of Mortgagor, may be written by a company other than one Mortgagor would choose, and may be written at a higher rate than Mortgagor could obtain if Mortgagor purchased the insurance. Mortgagor acknowledges and agrees that Lender or one of Lender’s affiliates may receive commissions on the purchase of this insurance. 25. WAIVER OF APPRAISEMENT. Appraisement of the Property is waived or not waived at Lender’s option, which shall be exercised before or at the time judgment is entered in any foreclosure. 26. OTHER TERMS. The following are applicable to this Security Instrument: A. No Action by Lender. Nothing contained in this Security Instrument shall require Lender to take any action. 27. APPLICABLE LAW. This Security Instrument is governed by the laws of Oklahoma, the United States of America, and to the extent required, by the laws of the jurisdiction where the Property is located, except to the extent such state laws are preempted by federal law. 28. JOINT AND SEVERAL LIABILITY AND SUCCESSORS. Each Mortgagor’s obligations under this Security Instrument are independent of the obligations of any other Mortgagor. Lender may sue each Mortgagor severally or together with any other Mortgagor. Lender may release any part of the Property and Mortgagor will still be obligated under this Security Instrument for the remaining Property. Mortgagor agrees that Lender and any party to this Security Instrument may extend, modify or make any change in the terms of this Security Instrument or any evidence of debt without Mortgagor’s consent. Such a change will not release Mortgagor from the terms of this Security Instrument. 29. AMENDMENT, INTEGRATION AND SEVERABILITY. This Security Instrument may not be amended or modified by oral agreement. No amendment or modification of this Security Instrument is effective unless made in writing. This Security Instrument and any other documents relating to the Secured Debts are the complete and final expression of the agreement. If any provision of this Security Instrument is unenforceable, then the unenforceable provision will be severed and the remaining provisions will still be enforceable. 30. INTERPRETATION. Whenever used, the singular includes the plural and the plural includes the singular. The section headings are for convenience only and are not to be used to interpret or define the terms of this Security Instrument. 31. NOTICE, ADDITIONAL DOCUMENTS AND RECORDING FEES. Unless otherwise required by law, any notice will be given by delivering it or mailing it by first class mail to the appropriate party's address listed in the DATE AND PARTIES section, or to any other address designated in writing. Notice to one will be deemed to be notice to all s. Mortgagor will inform Lender in writing of any change in Mortgagor's name, address or other application information. Mortgagor will provide Lender any other, correct and complete information Lender requests to effectively mortgage or convey the Property. Mortgagor agrees to pay all expenses, charges and taxes in connection with the preparation and recording of this Security Instrument. Mortgagor agrees to sign, deliver, and file any additional documents or certifications that Lender may consider necessary to perfect, continue, and preserve Mortgagor's obligations under this Security Instrument and to confirm Lender's lien status on any Property, and Mortgagor agrees to pay all expenses, charges and taxes in connection with the preparation and recording thereof. Time is of the essence. SIGNATURES. By signing, Mortgagor agrees to the terms and covenants contained in this Security Instrument. Mortgagor also acknowledges receipt of a copy of this Security Instrument. MORTGAGOR: CHARLES W. STEWART MARY E. STEWART ACKNOWLEDGMENT. STATE OF OKLAHOMA, COUNTY OF BLAINE ss. This instrument was acknowledged before me this 17th day of July 2020 by CHARLES W. STEWART, spouse of MARY E. STEWART, and MARY E. STEWART, spouse of CHARLES W. STEWART. My commission expires: December 6, 2022 Commission number: [blacked out] NOTARY PUBLIC State of Oklahoma Blaine County Jean Howard Commission #02019789 My Comm. Expires 12-6-22 (Jnotary Public) JEAN HOWARD Space Above This Line For Recording Data When recorded return to Loan Department, Community State Bank of Canton, P.O. Box 549, Canton, OK 73724-0549 MORTGAGE, ASSIGNMENT OF PRODUCTION, SECURITY AGREEMENT, FIXTURE FILING, AND FINANCING STATEMENT (With Future Advance Clause) A carbon, photographic, facsimile, or other reproduction of this instrument is sufficient as a financing statement. This instrument contains after-acquired property provisions, secures payments of future advances, and covers proceeds of collateral. This instrument covers minerals and other substances of value which may be extracted from the earth (including without limitation oil and gas), and the Accounts related thereto, which will be financed at the wellheads or mineheads of the wells or mines located on the properties described below herein in this Instrument (or referenced herein as Exhibit "A"). This instrument is to be filed for record, among other places, in the real estate or comparable records of the county or counties referenced herein and such filing shall serve, among other purposes, as an "as extracted collateral" filing. DATE AND PARTIES: The date of this Mortgage, Assignment of Production, Security Agreement, Fixture Filing, and Financing Statement (Security Instrument) is July 17, 2020. The parties and their addresses are: MORTGAGOR: CHARLES W. STEWART Spouse of MARY E. STEWART 7891 CO. RD. 500 ALINE, OK 73716 MARY E. STEWART Spouse of CHARLES W. STEWART 7891 CO. RD. 500 ALINE, OK 73716 LENDER: COMMUNITY STATE BANK OF CANTON Organized and existing under the laws of Oklahoma 101 W. Main PO Box 549 Canton, OK 73724-0549 1. DEFINITIONS. For the purposes of this document, the following term has the following meaning. A. Loan: "Loan" refers to this transaction generally, including obligations and duties arising from the terms of all documents prepared or submitted for this transaction. 2. CONVEYANCE. Mortgagor does hereby grant, bargain, assign, transfer, pledge, hypothecate, convey and mortgage to Lender, with the power of sale, and grant a continuing security interest to Lender in, all right, title, interest now or at any time hereafter vested in Mortgagor in and to the following described properties and mineral interests (collectively known as the "Property") and more particularly described as follows: A. Descriptions of the Mineral Interests and Underlying Leases. The mineral interests (including royalty interests), and underlying leases if any, described herein cover, affect and relate to the following real property situated in Alfalfa County, State of Oklahoma: All of Borrower's undivided interest in oil, gas and other minerals (including all participating and non-participating interests) in, under and that may be produced from the following lands: The Southwest Quarter (SW/4) of Section Eight (8), Township Twenty-four (24) North, Range Twelve (12) WIM, Alfalfa County, Oklahoma The Northeast Quarter (NE/4) of Section Nineteen (19), Township Twenty-four (24) North, Range Twelve (12) WIM, Alfalfa county, Oklahoma Lots One (1) and Two (2) and the East Half of the Northwest Quarter (E/2 NW/4) of Section Nineteen (19), Township Twenty-four (24) North, Range Twelve (12) WIM, Alfalfa county, Oklahoma, LESS AND EXCEPT a parcel of land in Lots 1 and 2 and the East Half of the Northwest Quarter of Section 19, Township 24 North, Range 12 WIM, Alfalfa County, Oklahoma described as follows: Beginning at the Northwest corner of the Northwest Quarter of Section 19, thence East 1775.4 feet, thence South 468.6 feet, thence West 1775.4 feet, thence North 468.6 feet to the point of beginning, containing 19.1 acres more or less together with any and all oil, gas and other mineral leases, all extensions, renewals and substitutions thereof, now owned, hereafter acquired or reacquired, collectively known as the "Hydrocarbons Property"; B. Without limitation of the foregoing, all other right, title and interest of Mortgagor (whether now owned or hereafter acquired by operation of law or otherwise) of whatever kind or character (including, without limitation, mineral interests, royalty interests, oil, gas and mineral leases if any, and other interests in oil, gas and other minerals) in and to the lands which are described or referred to herein even though Mortgagor's interest may be incorrectly described or omitted; C. All oil, gas, casinghead gas, gaseous hydrocarbons, condensate, distillate, liquid hydrocarbons and other minerals extracted, as extracted, severed, produced, saved or mined from the Hydrocarbons Property through regular production or enhanced recovery techniques, and further including all products extracted, processed or otherwise refined therefrom - all of which are collectively known as the "Hydrocarbons"; D. All of Mortgagor's interests, rights, mineral interests (including royalty interests), easements, rights-of-way, licenses and leases, servitudes, tenements, hereditaments, appurtenances, including but not limited to, any and all of the following additional property, things and goods, whether now or hereafter located on, relating to, arising from or affixed or attributable to, all or any part of the Hydrocarbons Property including: (1) All, existing and future, drilling units, spacing units, production units, pooled units, proration orders, Hydrocarbons formations on, under, relating or attributed to, the Hydrocarbons Property; (2) All unit agreements, unit operating agreements, contribution agreements, operating agreements, joint operating agreements, farm-in agreements, farm-out agreements, franchises, licenses, privileges, orders, permits and applications relating to the Hydrocarbons Property; (3) All agreements relating to connection, purchase, marketing, sales, handling, processing, transportation, exchange and storage, and all other agreements and rights that Mortgagor has, or may acquire, whether by consent, operation of law, governmental order or judicial decree relating to the Hydrocarbons Property; and (4) All, existing and future, production of Hydrocarbons from the Hydrocarbons Property, whether in place, as extracted, extracted, severed, in storage or in transit, whether held in suspense by or with any purchaser, operator or third party, together with all present and future, royalties, rents, profits, increases, proceeds, cash accounts, contract rights, improvements, and products, arising out of, or relating to, the Hydrocarbons Property. This Security Instrument will remain in effect forever until both the Secured Debts have been satisfied and all underlying agreements have been terminated and released in writing by Lender. 3. GRANT OF SECURITY INTEREST. Mortgagor further grants a continuing security interest in and to all rights, titles and interests in existing and future "As Extracted Collateral", "Accounts", "General Intangibles", "Proceeds", and all "Goods" (except "Consumer Goods"), relating to, or associated with, the Hydrocarbons Property. These terms have the same meaning as defined by the Oklahoma Uniform Commercial Code (Oklahoma "UCC"). This security interest is additional collateral security under this Security Instrument, and this collateral security is included, by reference, into the definition of "Property" defined above. 4. ASSIGNMENT OF PRODUCTION ACCOUNTS; ACCOUNTS AND PROCEEDS. As additional collateral security for the Secured Debts, Mortgagor further assigns, pledges and transfers to Lender and grants a continuing security interest to Lender in all of Mortgagor's interest in the Production (hereafter defined). The term "Production" is defined to include, but is not limited to, all "As Extracted Collateral" and Hydrocarbons extracted, severed or produced from, accruing from or attributable to the Hydrocarbons Property, including all Proceeds of such Production and all payments in lieu of production, exchanges and profits, and all rights with respect to Proceeds or profits to which Mortgagor is entitled by virtue of ownership of the Property (collectively known as "Production Proceeds"). Lender shall have the immediate and on-going right under this Security Instrument to collect and receive all Production Proceeds. Upon the occurrence of an Event of Default (hereinafter defined), Mortgagor convenants to direct, and cause, all Purchasers to immediately pay all Production Proceeds to Lender at such place as Lender may direct. Mortgagor agrees to execute and deliver to the Purchasers such transfer orders, division orders, indemnifications or other documents as necessary and prudent to effectuate this Assignment of Production and the intention of this Security Instrument. If under any gas sales agreements or products sales contract, other than division orders or transfer orders, any Production Proceeds are required to be paid to Mortgagor so that under such existing agreements payment cannot be made of such Production Proceeds to Lender, Mortgagor's interest in all Production Proceeds under such agreements and in all other Production Proceeds which for any reason may be paid to Mortgagor shall, when received by Mortgagor, constitute trust funds in the Mortgagor's hands and shall be immediately paid over to Lender. All Purchasers of the Production are hereby authorized and directed to pay Mortgagor's interest in the Production directly to Lender and to continue such payments until the purchasers of Production ("Purchaser") have been furnished with a release in writing and duly executed by Lender. The delivery and receipt of the Production Proceeds from Purchasers to Lender shall be a full and complete release, discharge and acquittance to the Purchasers to the extent of all sums so paid. No Purchasers shall be required to ensure the proper application by Lender of the Production Proceeds so paid to Lender. This Assignment of Production does not alter or otherwise modify the Mortgagor's obligations to fulfill, and perform under, the terms of Secured Debts and this Security Instrument. This Assignment of Production and security interest are additional collateral security under this Security Instrument and are further included, by reference, into the definition of "Property" defined above. 6. ADDITIONAL PROVISIONS UNDER ASSIGNMENT OF PRODUCTION. A. Mortgagor further appoints Lender as its attorney-in-fact with the authority to do and perform any and every act, necessary and prudent, to effectuate the terms of this Assignment of Production. This grant of attorney-in-fact by Mortgagor is with consideration, irrevocable and thereby coupled with an interest. B. Should any of the Purchasers, now or hereafter purchasing the Production, fail to make prompt payment of the Production Proceeds to Lender, Lender shall have the authority and right to change the Purchaser, change the connection or agreements and designate another Purchaser to purchase and take such Production. C. Lender is under no obligation to enforce the collection of the Production Proceeds. D. Lender is not liable, and is absolved from all liability, for failure to collect Production Proceeds and from all other actions or omissions to act, except for Lender's gross negligence or willful misconduct. E. Lender will account to Mortgagor for the Production Proceeds that Lender actually received. The Production Proceeds received by Lender shall be applied by Lender, in its discretion, to the payment of taxes, insurance, judgments, liens, costs, attorneys' fees, accrued interest and the Secured Debt in accordance with the terms of this Security Instrument, the promissory notes and loan agreements that evidence the agreements and Secured Debts. Notwithstanding the other provisions of this Section, Lender and, to the extent that may be specified by Lender at the time, any receiver appointed at the request of Lender in judicial proceedings for the enforcement of this instrument shall have the right to receive all of the Hydrocarbons herein assigned and the proceeds therefrom after the Secured Debts have been declared due and payable and to apply all of said proceeds in accordance with the Pre-Foreclosure Remedies Section herein below. Upon any sale of the Property or any part thereof pursuant to this Security Instrument, the Hydrocarbons thereafter produced from the property so sold, and the proceeds therefrom, shall be included in such sale and shall pass to the purchaser free and clear of the assignment contained in the Assignment of Production Section herein above. 6. SECURED DEBTS AND FUTURE ADVANCES. The term "Secured Debts" includes and this Security Instrument will secure each of the following: A. Specific Debts. The following debts and all extensions, renewals, refinancings, modifications and replacements. A promissory note or other agreement, No. 528, dated July 17, 2020, from Mortgagor to Lender, with a loan amount of $1,011,059.73. B. Future Advances. All future advances from Lender to Mortgagor under the Specific Debts executed by Mortgagor in favor of Lender after this Security Instrument. If more than one person signs this Security Instrument, each agrees that this Security Instrument will secure all future advances that are given to Mortgagor either individually or with others who may not sign this Security Instrument. All future advances are secured by this Security Instrument even though all or part may not yet be advanced. All future advances are secured as if made on the date of this Security Instrument. Nothing in this Security Instrument shall constitute a commitment to make additional or future advances in any amount. Any such commitment must be agreed to in a separate writing. C. All Debts. All present and future debts from Mortgagor to Lender, even if this Security Instrument is not specifically referenced, or if the future debt is unrelated to or of a different type than this debt. If more than one person signs this Security Instrument, each agrees that it will secure debts incurred either individually or with others who may not sign this Security Instrument. Nothing in this Security Instrument constitutes a commitment to make additional or future loans or advances. Any such commitment must be in writing. This Security Instrument will not secure any debt for which a non possessory, non-purchase money security interest is created in "household goods" in connection with a "consumer loan," as those terms are defined by federal law governing unfair and deceptive credit practices. This Security Instrument will not secure any debt for which a security interest is created in "margin stock" and Lender does not obtain a "statement of purpose," as defined and required by federal law governing securities. This Security Instrument will not secure any other debt if Lender, with respect to that other debt, fails to fulfill any necessary requirements or fails to conform to any limitations of the Truth in Lending Act (Regulation Z) or the Real Estate Settlement Procedures Act (Regulation X) that are required for loans secured by the Property. D. Sums Advanced. All sums advanced and expenses incurred by Lender under the terms of this Security Instrument. 7. LIMITATIONS ON CROSS-COLLATERALIZATION. The cross-collateralization clause on any existing or future loan, but not including this Loan, is void and ineffective as to this Loan, including any extension or refinancing. The Loan is not secured by a previously executed security instrument if a non-possessory, non-purchase money security interest is created in "household goods" in connection with a "consumer loan," as those terms are defined by federal law governing unfair and deceptive credit practices. The Loan is not secured by a previously executed security instrument if Lender fails to fulfill any necessary requirements or fails to conform to any limitations of the Real Estate Settlement Procedures Act, (Regulation X), that are required for loans secured by the Property or if, as a result, the other debt would become subject to Section 670 of the John Warner National Defense Authorization Act for Fiscal Year 2007. The Loan is not secured by a previously executed security instrument if Lender fails to fulfill any necessary requirements or fails to conform to any limitations of the Truth in Lending Act, (Regulation Z), that are required for loans secured by the Property. 8. PAYMENTS. Mortgagor agrees that all payments under the Secured Debts will be paid when due and in accordance with the terms of the Secured Debts and this Security Instrument. 9. WARRANTY OF TITLE. Mortgagor represents, covenants and warrants that: A. Mortgagor lawfully owns, possesses and is seized of the Property; B. The Property is unencumbered, except for encumbrances of record; C. Mortgagor has the right and authority to mortgage, assign, warrant, pledge and hypothecate the Property and grant a security interest in the Property; D. Mortgagor's types and amounts of interest (including gross and net revenue interests) in the Property are true and correct; E. Mortgagor is entitled to receive all payments and proceeds from the present and future Production from the Property; F. Mortgagor has not been prepaid for future deliveries of Production and likewise is not obligated under any "take or pay" clause or similar contract that commits delivery of future Production without receiving full payment of Production Proceeds for each such delivery; and G. Mortgagor will not, at any time without first obtaining Lender's written consent, assign, sell, transfer, dispose or further encumber the Property, Production or Production Proceeds, or remove or permit the removal of the Property. 10. PRIOR SECURITY INTERESTS. With regard to any other mortgage, deed of trust, security agreement or other lien document that created a prior security interest or encumbrance on the Property, Mortgagor agrees: A. To make all payments when due and to perform or comply with all covenants. B. To promptly deliver to Lender any notices that Mortgagor receives from the holder. C. Not to allow any modification or extension of, nor to request any future advances under any note or agreement secured by the lien document without Lender's prior written consent. 11. CLAIMS AGAINST TITLE. Mortgagor covenants and warrants to avoid and immediately resolve all claims against title, and specifically without limitation: A. Mortgagor will promptly pay, or cause to be paid, when due, all property taxes, severance taxes, sales taxes, assessments, levies, liens, franchise fees, license fees, and any other governmental charges which are levied, imposed or assessed against the Property or Mortgagor; B. Mortgagor will promptly pay, or cause to be paid, all encumbrances, utilities, services, operators, laborers or materialmen for labor and material furnished in connection with the operation, development or maintenance of the Property in a manner which does not encumber or permit the Property to be encumbered by any lien other than the lien created by this Security Instrument; C. Mortgagor will comply with the terms of the Leases, if any, and keep the Leases in full force and effect, including the timely payment of lease payments, bonuses, rents, delay rentals, shut-in royalty payments and production payments; and D. Mortgagor will not temporarily abandon a well so as to cause a termination of the Leases, if any, and will not abandon any well without properly plugging and notifying governmental authorities and Lender. Lender may require Mortgagor to provide to Lender copies of all notices that such amounts are due and the receipts evidencing Mortgagor's payment. Mortgagor will defend title to the Property against any claims that would impair the lien of this Security Instrument. Mortgagor agrees to assign to Lender, as requested by Lender, any rights, claims or defenses Mortgagor may have against parties who supply labor, services or materials to maintain or improve the Property. 12. ADDITIONAL COVENANTS BY MORTGAGOR TO PERFORM. Mortgagor further represents, covenants and warrants that: A. Mortgagor will operate, or cause to operate, with prudent and ordinary care the Property in a forthcoming and diligent manner, including good repair, maintenance, necessary replacement and efficient operations; B. The Hydrocarbons Property is producing, or is capable of producing, Hydrocarbons in paying quantities in accordance with any proration order and unitization or pooling agreement; C. Mortgagor will exercise, or cause to be exercised, reasonable and ordinary care of the surface to, in and around the Hydrocarbons Property, storage, meters and pipelines, including control of noxious weeds and similar plants; D. Mortgagor will not change, or cause to be changed, the Operator of the Hydrocarbons Property or Purchasers without Lender's consent - which consent will not be unreasonably withheld; E. Mortgagor is in compliance with, and will continue to be in full compliance, with all laws, regulations, permits, orders, easements and agreements; F. Mortgagor will not commit waste, or cause waste to be committed, including the unauthorized venting or flaring of gas; G. Mortgagor will not permit the Property to become subject to, or contaminated by, any hazardous, toxic or pollutant waste, including pollution of the soil, land, water and atmosphere; H. Mortgagor will take reasonable efforts to secure the Property from tampering, damage and theft; and I. Mortgagor consents to, and authorizes, access for Lender to inspect the Property and all information which relates or pertains, directly or indirectly, to the Property whether such information is in the possession or custody of Mortgagor, Mortgagor's agents, Purchasers or operators of the Hydrocarbons Property. 13. DUE ON SALE OR ENCUMBRANCE. Lender may, at its option, declare the entire balance of the Secured Debt to be immediately due and payable upon the creation of, or contract for the creation of, any lien, encumbrance, transfer or sale of all or any part of the Property. 14. WARRANTIES AND REPRESENTATIONS. Mortgagor has the right and authority to enter into this Security Instrument. The execution and delivery of this Security Instrument will not violate any agreement governing Mortgagor or to which Mortgagor is a party. 15. PROPERTY CONDITION, ALTERATIONS, INSPECTION, VALUATION AND APPRAISAL. Mortgagor will keep the Property in good condition and make all repairs that are reasonably necessary. Mortgagor will not commit or allow any waste, impairment, or deterioration of the Property. Mortgagor will keep the Property free of noxious weeds and grasses. Mortgagor agrees that the nature of the occupancy and use will not substantially change without Lender's prior written consent. Mortgagor will not permit any change in any license, restrictive covenant or easement without Lender's prior written consent. Mortgagor will notify Lender of all demands, proceedings, claims, and actions against Mortgagor, and of any loss or damage to the Property. No portion of the Property will be removed, demolished or materially altered without Lender's prior written consent except that Mortgagor has the right to remove items of personal property comprising a part of the Property that become worn or obsolete, provided that such personal property is replaced with other personal property at least equal in value to the replaced personal property, free from any title retention device, security agreement or other encumbrance. Such replacement of personal property will be deemed subject to the security interest created by this Security Instrument. Lender or Lender's agents may, at Lender's option, enter the Property at any reasonable time and frequency for the purpose of inspecting, valuating, or appraising the Property. Lender will give Mortgagor notice at the time of or before an on-site inspection, valuation, or appraisal for on-going due diligence or otherwise specifying a reasonable purpose. Any inspection, valuation or appraisal of the Property will be entirely for Lender's benefit and Mortgagor will in no way rely on Lender's inspection, valuation or appraisal for its own purpose, except as otherwise provided by law. 16. AUTHORITY TO PERFORM. If Mortgagor fails to perform any duty or any of the covenants contained in this Security Instrument, Lender may, without notice, perform or cause them to be performed. Mortgagor appoints Lender as attorney in fact to sign Mortgagor's name or pay any amount necessary for performance. Lender's right to perform for Mortgagor will not create an obligation to perform, and Lender's failure to perform will not preclude Lender from exercising any of Lender's other rights under the law or this Security Instrument. If any construction on the Property is discontinued or not carried on in a reasonable manner, Lender may take all steps necessary to protect Lender's security interest in the Property, including completion of the construction. 17. DEFAULT. Mortgagor will be in default if any of the following events (known separately and collectively as an Event of Default) occur: A. Payments. Mortgagor fails to make a payment in full when due. B. Insolvency or Bankruptcy. The death, dissolution or insolvency of, appointment of a receiver by or on behalf of, application of any debtor relief law, the assignment for the benefit of creditors by or on behalf of, the voluntary or involuntary termination of existence by, or the commencement of any proceeding under any present or future federal or state insolvency, bankruptcy, reorganization, composition or debtor relief law by or against Mortgagor, Borrower, or any co-signer, endorser, surety or guarantor of this Security Instrument or any other obligations Borrower has with Lender. C. Death or Incompetency. Mortgagor dies or is declared legally incompetent. D. Failure to Perform. Mortgagor fails to perform any condition or to keep any promise or covenant of this Security Instrument. E. Other Documents. A default occurs under the terms of any other transaction document. F. Other Agreements. Mortgagor is in default on any other debt or agreement Mortgagor has with Lender. G. Misrepresentation. Mortgagor makes any verbal or written statement or provides any financial information that is untrue, inaccurate, or conceals a material fact at the time it is made or provided. H. Judgment. Mortgagor fails to satisfy or appeal any judgment against Mortgagor. I. Forfeiture. The Property is used in a manner or for a purpose that threatens confiscation by a legal authority. J. Name Change. Mortgagor changes Mortgagor’s name or assumes an additional name without notifying Lender before making such a change. K. Property Transfer. Mortgagor transfers all or a substantial part of Mortgagor’s money or property. This condition of default, as it relates to the transfer of the Property, is subject to the restrictions contained in the DUE ON SALE section. L. Property Value. Lender determines in good faith that the value of the Property has declined or is impaired. M. Erosion. Any loan proceeds are used for a purpose that will contribute to excessive erosion of highly erodible land or to the conversion of wetlands to produce or to make possible the production of an agricultural commodity, as provided by 7 CFR Part 12. N. Insecurity. Lender determines in good faith that a material adverse change has occurred in Mortgagor’s financial condition from the conditions set forth in Mortgagor’s most recent financial statement before the date of this Security Instrument or that the prospect for payment or performance of the Secured Debts is impaired for any reason. O. Material Change in Proration. Any material change in the proration orders affecting the Property which Lender believes in good faith will prejudicially affect Lender’s lien and security interest in the Property. 18. PRE-FORECLOSURE REMEDIES. If an Event of Default shall occur and be continuing, Lender is authorized, prior or subsequent to the institution of any foreclosure proceedings, to enter upon the Property, or any part thereof, and to take possession of the Property and all books and records relating thereto, and to exercise without interference from Mortgagor any and all rights which Mortgagor has with respect to the management, possession, operation, protection or preservation of the Property. If necessary to obtain the possession provided for above, Lender may invoke any and all remedies to dispossess Mortgagor. All reasonable costs, expenses and liabilities of every character incurred by Lender in managing, operating, maintaining, protecting or preserving the Property shall constitute a demand obligation (which obligation Mortgagor hereby expressly promises to pay) owing by Mortgagor to Lender and shall bear interest from date of expenditure until paid at the statutory rate of interest under Oklahoma law, all of which shall constitute a portion of the Secured Debts and shall be secured by this Security Instrument and by any other instrument securing the Secured Debts. In connection with any action taken by Lender pursuant to this Section, LENDER SHALL NOT BE LIABLE FOR ANY LOSS SUSTAINED BY MORTGAGOR RESULTING FROM ANY ACT OR OMISSION OF LENDER (INCLUDING LENDER’S OWN NEGLIGENCE) IN MANAGING THE PROPERTY UNLESS SUCH LOSS IS CAUSED BY THE GROSS NEGLIGENCE, WILLFUL MISCONDUCT OR BAD FAITH OF LENDER, nor shall Lender be obligated to perform or discharge any obligation, duty or liability of Mortgagor arising under any agreement forming a part of the Property or arising under any permitted encumbrance or otherwise arising. Mortgagor hereby assents to, ratifies and confirms any and all proper and legal actions of Lender with respect to the Property taken under the foregoing provision. 19. REMEDIES. On or after the occurrence of an Event of Default, Lender may use any and all remedies Lender has under state or federal law or in any document relating to the Secured Debts. Any amounts advanced on Mortgagor’s behalf will be immediately due and may be added to the balance owing under the Secured Debts. Lender may make a claim for any and all insurance benefits or refunds that may be available on Mortgagor’s default. Subject to any required time schedules or any other notice rights Mortgagor may have under federal and state law, Lender may make all or any part of the amount owing by the terms of the Secured Debts immediately due and foreclose this Security Instrument in a manner provided by law upon the occurrence of an Event of Default or anytime thereafter. After the occurrence of an Event of Default, Lender may proceed by a suit or suits in equity or at law, whether for a foreclosure hereunder, or for the specific performance of any covenant or agreement herein contained or in aid of the execution of any power herein granted, or for the appointment of a receiver pending any foreclosure hereunder or the sale of the Property, or for the enforcement of any other appropriate legal or equitable remedy. In addition to all other remedies herein provided for, Mortgagor agrees that after an Event of Default has occurred, Lender shall, as a matter of right, be entitled to the appointment of a receiver or receivers to be designated by Lender for all or any part of the Property whether such receivership be incident to a proposed sale of such properties (or any of them) or otherwise, and Mortgagor does hereby consent to the appointment of such receiver or receivers. All remedies are distinct, cumulative and not exclusive, and Lender is entitled to all remedies provided at law or equity, whether or not expressly set forth. The acceptance by Lender of any sum in payment or partial payment on the Secured Debts after the balance is due or is accelerated or after foreclosure proceedings are filed will not constitute a waiver of Lender's right to require full and complete cure of any existing default. By not exercising any remedy, Lender does not waive Lender's right to later consider the event a default if it continues or happens again. 20. INDEMNIFICATION. Lender shall not be liable for any act or omission to act in administering, managing, operating or controlling the Property, including the collection and application of any Production Proceeds. Lender shall be indemnified by Mortgagor for any assertion or claim by a third party arising out of Lender's actions or omissions under the terms of this Security Agreement and protecting its lien and security interests in the Property. 21. COLLECTION EXPENSES AND ATTORNEYS' FEES. On or after the occurrence of an Event of Default, to the extent permitted by law, Mortgagor agrees to pay all expenses of collection, enforcement, valuation, appraisal or protection of Lender's rights and remedies under this Security Instrument or any other document relating to the Secured Debts. Mortgagor agrees to pay expenses for Lender to inspect, evaluate, appraise and preserve the Property. Expenses include, but are not limited to, attorneys' fees, court costs and other legal expenses. These expenses are due and payable immediately. If not paid immediately, these expenses will bear interest from the date of payment until paid in full at the highest interest rate in effect as provided for in the terms of the Secured Debts. In addition, to the extent permitted by the United States Bankruptcy Code, Mortgagor agrees to pay the reasonable attorneys' fees incurred by Lender to protect Lender's rights and interests in connection with any bankruptcy proceedings initiated by or against Mortgagor. 22. ENVIRONMENTAL LAWS AND HAZARDOUS SUBSTANCES. As used in this section, (1) Environmental Law means, without limitation, the Comprehensive Environmental Response, Compensation and Liability Act (CERCLA, 42 U.S.C. 9601 et seq.), all other federal, state and local laws, regulations, ordinances, court orders, attorney general opinions or interpretive letters concerning the public health, safety, welfare, environment or a hazardous substance; and (2) Hazardous Substance means any toxic, radioactive or hazardous material, waste, pollutant or contaminant which has characteristics which render the substance dangerous or potentially dangerous to the public health, safety, welfare or environment. The term includes, without limitation, any substances defined as "hazardous material," "toxic substance," "hazardous waste," "hazardous substance," or "regulated substance" under any Environmental Law. Mortgagor represents, warrants and agrees that: A. Except as previously disclosed and acknowledged in writing to Lender, no Hazardous Substance has been, is, or will be located, transported, manufactured, treated, refined, or handled by any person on, under or about the Property, except in the ordinary course of business and in strict compliance with all applicable Environmental Law. B. Except as previously disclosed and acknowledged in writing to Lender, Mortgagor has not and will not cause, contribute to, or permit the release of any Hazardous Substance on the Property. C. Mortgagor will immediately notify Lender if (1) a release or threatened release of Hazardous Substance occurs on, under or about the Property or migrates or threatens to migrate from nearby property; or (2) there is a violation of any Environmental Law concerning the Property. In such an event, Mortgagor will take all necessary remedial action in accordance with Environmental Law. D. Except as previously disclosed and acknowledged in writing to Lender, Mortgagor has no knowledge of or reason to believe there is any pending or threatened investigation, claim, or proceeding of any kind relating to (1) any Hazardous Substance located on, under or about the Property; or (2) any violation by Mortgagor or any tenant of any Environmental Law. Mortgagor will immediately notify Lender in writing as soon as Mortgagor has reason to believe there is any such pending or threatened investigation, claim, or proceeding. In such an event, Lender has the right, but not the obligation, to participate in any such proceeding including the right to receive copies of any documents relating to such proceedings. E. Except as previously disclosed and acknowledged in writing to Lender, Mortgagor and every tenant have been, are and will remain in full compliance with any applicable Environmental Law. F. Except as previously disclosed and acknowledged in writing to Lender, there are no underground storage tanks, private dumps or open wells located on or under the Property and no such tank, dump or well will be added unless Lender first consents in writing. G. Mortgagor will regularly inspect the Property, monitor the activities and operations on the Property, and confirm that all permits, licenses or approvals required by any applicable Environmental Law are obtained and complied with. H. Mortgagor will permit, or cause any tenant to permit, Lender or Lender's agent to enter and inspect the Property and review all records at any reasonable time to determine (1) the existence, location and nature of any Hazardous Substance on, under or about the Property; (2) the existence, location, nature, and magnitude of any Hazardous Substance that has been released on, under or about the Property; or (3) whether or not Mortgagor and any tenant are in compliance with applicable Environmental Law. I. Upon Lender's request and at any time, Mortgagor agrees, at Mortgagor's expense, to engage a qualified environmental engineer to prepare an environmental audit of the Property and to submit the results of such audit to Lender. The choice of the environmental engineer who will perform such audit is subject to Lender's approval. J. Lender has the right, but not the obligation, to perform any of Mortgagor's obligations under this section at Mortgagor's expense. K. As a consequence of any breach of any representation, warranty or promise made in this section, (1) Mortgagor will indemnify and hold Lender and Lender's successors or assigns harmless from and against all losses, claims, demands, liabilities, damages, cleanup, response and remediation costs, penalties and expenses, including without limitation all costs of litigation and attorneys' fees, which Lender and Lender's successors or assigns may sustain; and (2) at Lender's discretion, Lender may release this Security Instrument and in return Mortgagor will provide Lender with collateral of at least equal value to the Property without prejudice to any of Lender's rights under this Security Instrument. L. Notwithstanding any of the language contained in this Security Instrument to the contrary, the terms of this section will survive any foreclosure or satisfaction of this Security Instrument regardless of any passage of title to Lender or any disposition by Lender of any or all of the Property. Any claims and defenses to the contrary are hereby waived. 23. CONDEMNATION. Mortgagor will give Lender prompt notice of any pending or threatened action by private or public entities to purchase or take any or all of the Property through condemnation, eminent domain, or any other means. Mortgagor authorizes Lender to intervene in Mortgagor's name in any of the above described actions or claims. Mortgagor assigns to Lender the proceeds of any award or claim for damages connected with a condemnation or other taking of all or any part of the Property. Such proceeds will be considered payments and will be applied as provided in this Security Instrument. This assignment of proceeds is subject to the terms of any prior mortgage, deed of trust, security agreement or other lien document. 24. INSURANCE. Mortgagor agrees to keep the Property insured against the risks reasonably associated with the Property. Mortgagor will maintain this insurance in the amounts Lender requires. This insurance will last until the Property is released from this Security Instrument. What Lender requires pursuant to the preceding two sentences can change during the term of the Secured Debts. Mortgagor may choose the insurance company, subject to Lender's approval, which will not be unreasonably withheld. All insurance policies and renewals will include a standard "mortgage clause" and, where applicable, "loss payee clause." If required by Lender, Mortgagor agrees to maintain comprehensive general liability insurance and rental loss or business interruption insurance in amounts and under policies acceptable to Lender. The comprehensive general liability insurance must name Lender as an additional insured. The rental loss or business interruption insurance must be in an amount equal to at least coverage of one year's debt service, and required escrow account deposits (if agreed to separately in writing). Mortgagor will give Lender and the insurance company immediate notice of any loss. All insurance proceeds will be applied to restoration or repair of the Property or to the Secured Debts, at Lender's option. If Lender acquires the Property in damaged condition, Mortgagor's rights to any insurance policies and proceeds will pass to Lender to the extent of the Secured Debts. Mortgagor will immediately notify Lender of cancellation or termination of insurance. If Mortgagor fails to keep the Property insured, Lender may obtain insurance to protect Lender's interest in the Property and Mortgagor will pay for the insurance on Lender's demand. Lender may demand that Mortgagor pay for the insurance all at once, or Lender may add the insurance premiums to the balance of the Secured Debts and charge interest on it at the rate that applies to the Secured Debts. This insurance may include lesser or greater coverages than originally required of Mortgagor, may be written by a company other than one Mortgagor would choose, and may be written at a higher rate than Mortgagor could obtain if Mortgagor purchased the insurance. Mortgagor acknowledges and agrees that Lender or one of Lender's affiliates may receive commissions on the purchase of this insurance. 25. WAIVER OF APPRAISEMENT. Appraisement of the Property is waived or not waived at Lender's option, which shall be exercised before or at the time judgment is entered in any foreclosure. 26. OTHER TERMS. The following are applicable to this Security Instrument: A. No Action by Lender. Nothing contained in this Security Instrument shall require Lender to take any action. 27. APPLICABLE LAW. This Security Instrument is governed by the laws of Oklahoma, the United States of America, and to the extent required, by the laws of the jurisdiction where the Property is located, except to the extent such state laws are preempted by federal law. 28. JOINT AND SEVERAL LIABILITY AND SUCCESSORS. Each Mortgagor's obligations under this Security Instrument are independent of the obligations of any other Mortgagor. Lender may sue each Mortgagor severally or together with any other Mortgagor. Lender may release any part of the Property and Mortgagor will still be obligated under this Security Instrument for the remaining Property. Mortgagor agrees that Lender and any party to this Security Instrument may extend, modify or make any change in the terms of this Security Instrument or any evidence of debt without Mortgagor's consent. Such a change will not release Mortgagor from the terms of this Security Instrument. 29. AMENDMENT, INTEGRATION AND SEVERABILITY. This Security Instrument may not be amended or modified by oral agreement. No amendment or modification of this Security Instrument is effective unless made in writing. This Security Instrument and any other documents relating to the Secured Debts are the complete and final expression of the agreement. If any provision of this Security Instrument is unenforceable, then the unenforceable provision will be severed and the remaining provisions will still be enforceable. 30. INTERPRETATION. Whenever used, the singular includes the plural and the plural includes the singular. The section headings are for convenience only and are not to be used to interpret or define the terms of this Security Instrument. 31. NOTICE, ADDITIONAL DOCUMENTS AND RECORDING FEES. Unless otherwise required by law, any notice will be given by delivering it or mailing it by first class mail to the appropriate party's address listed in the DATE AND PARTIES section, or to any other address designated in writing. Notice to one will be deemed to be notice to all s. Mortgagor will inform Lender in writing of any change in Mortgagor's name, address or other application information. Mortgagor will provide Lender any other, correct and complete information Lender requests to effectively mortgage or convey the Property. Mortgagor agrees to pay all expenses, charges and taxes in connection with the preparation and recording of this Security Instrument. Mortgagor agrees to sign, deliver, and file any additional documents or certifications that Lender may consider necessary to perfect, continue, and preserve Mortgagor's obligations under this Security Instrument and to confirm Lender's lien status on any Property, and Mortgagor agrees to pay all expenses, charges and taxes in connection with the preparation and recording thereof. Time is of the essence. SIGNATURES. By signing, Mortgagor agrees to the terms and covenants contained in this Security Instrument. Mortgagor also acknowledges receipt of a copy of this Security Instrument. MORTGAGOR: [Hand signed] CHARLES W. STEWART [Hand signed] MARY E. STEWART ACKNOWLEDGMENT. STATE OF OKLAHOMA, COUNTY OF BLAINE ss. This instrument was acknowledged before me this 17th day of July 2020 by CHARLES W. STEWART, spouse of MARY E. STEWART, and MARY E. STEWART, spouse of CHARLES W. STEWART. My commission expires: December 6, 2022 Commission number: [Hand signed] JEAN HOWARD NOTARY PUBLIC State of Oklahoma Blaine County Jean Howard Commission #02018789 My Comm. Expires Dec 6 2022 UCC FINANCING STATEMENT FOLLOW INSTRUCTIONS A. NAME & PHONE OF CONTACT AT FILER (optional) B. E-MAIL CONTACT AT FILER (optional) [email protected] C. SEND ACKNOWLEDGMENT TO: (Name and Address) Loan Department, Community State Bank of Canton P.O. Box 549 Canton, Oklahoma 73724-0549 THE ABOVE SPACE IS FOR FILING OFFICE USE ONLY 1. DEBTOR'S NAME: Provide only one Debtor name (1a or 1b) (use exact, full name; do not omit, modify, or abbreviate any part of the Debtor's name); if any part of the Individual Debtor's name will not fit in line 1b, leave all of item 1 blank, check here ☐ and provide the individual Debtor information in item 10 of the Financing Statement Addendum (Form UCC1Ad) <table> <tr> <th>1a. ORGANIZATION'S NAME</th> <td></td> </tr> <tr> <th colspan="4">OR</th> </tr> <tr> <th>1b. INDIVIDUAL'S SURNAME</th> <th>FIRST PERSONAL NAME</th> <th>ADDITIONAL NAME(S)/INITIAL(S)</th> <th>SUFFIX</th> </tr> <tr> <td>STEWART</td> <td>CHARLES</td> <td>W.</td> <td></td> </tr> <tr> <th>1c. MAILING ADDRESS</th> <th>CITY</th> <th>STATE</th> <th>POSTAL CODE</th> <th>COUNTRY</th> </tr> <tr> <td>7891 CO. RD. 500</td> <td>ALINE</td> <td>OK</td> <td>73716</td> <td>USA</td> </tr> </table> 2. DEBTOR'S NAME: Provide only one Debtor name (2a or 2b) (use exact, full name; do not omit, modify, or abbreviate any part of the Debtor's name); if any part of the Individual Debtor's name will not fit in line 2b, leave all of item 2 blank, check here ☐ and provide the individual Debtor information in item 10 of the Financing Statement Addendum (Form UCC1Ad) <table> <tr> <th>2a. ORGANIZATION'S NAME</th> <td></td> </tr> <tr> <th colspan="4">OR</th> </tr> <tr> <th>2b. INDIVIDUAL'S SURNAME</th> <th>FIRST PERSONAL NAME</th> <th>ADDITIONAL NAME(S)/INITIAL(S)</th> <th>SUFFIX</th> </tr> <tr> <td>STEWART</td> <td>MARY</td> <td>E.</td> <td></td> </tr> <tr> <th>2c. MAILING ADDRESS</th> <th>CITY</th> <th>STATE</th> <th>POSTAL CODE</th> <th>COUNTRY</th> </tr> <tr> <td>7891 CO. RD. 500</td> <td>ALINE</td> <td>OK</td> <td>73716</td> <td>USA</td> </tr> </table> 3. SECURED PARTY'S NAME (or NAME of ASSIGNEE of ASSIGNOR SECURED PARTY): Provide only one Secured Party name (3a or 3b) <table> <tr> <th>3a. ORGANIZATION'S NAME</th> <td></td> </tr> <tr> <th colspan="4">OR</th> </tr> <tr> <th>3b. INDIVIDUAL'S SURNAME</th> <th>FIRST PERSONAL NAME</th> <th>ADDITIONAL NAME(S)/INITIAL(S)</th> <th>SUFFIX</th> </tr> <tr> <td>Community State Bank of Canton</td> <td></td> <td></td> <td></td> </tr> <tr> <th>3c. MAILING ADDRESS</th> <th>CITY</th> <th>STATE</th> <th>POSTAL CODE</th> <th>COUNTRY</th> </tr> <tr> <td>101 W. Main PO Box 549</td> <td>Canton</td> <td>OK</td> <td>73724-0549</td> <td>USA</td> </tr> </table> 4. COLLATERAL: This financing statement covers the following collateral: All of the following which Debtor owns now or in the future, together with all parts, accessories, repairs, replacements, improvements, and accessions, and wherever located: EQUIPMENT: All equipment including, but not limited to, machinery, vehicles, furniture, fixtures, manufacturing equipment, farm machinery and equipment, shop equipment, office and record keeping equipment, parts, and tools. All equipment described in a list or schedule Debtor gives to Secured Party will also be included in the Property, but such a list is not necessary to create or perfect a valid security interest in Debtor's equipment. FARM PRODUCTS. "Farm products" means goods, other than standing timber, with respect to which the debtor is engaged in a farming operation and which are: (A) crops grown, growing, or to be grown, including: (i) crops produced on trees, vines, and bushes; and (ii) aquatic goods produced in aquacultural operations; (B) livestock, born or unborn, including aquatic goods produced in aquacultural operations; (C) supplies used or produced in a farming operation; or (D) products of crops or livestock in their unmanufactured states. AS EXTRACTED COLLATERAL: All "As Extracted Collateral", including oil, gas, and mineral rights of every type owned now or in the future. "As Extracted Collateral" will be financed at... (Continued) UCC FINANCING STATEMENT ADDENDUM FOLLOW INSTRUCTIONS 9. NAME OF FIRST DEBTOR: Same as line 1a or 1b on Financing Statement; if line 1b was left blank because Individual Debtor name did not fit, check here ☐ 9a. ORGANIZATION'S NAME OR 9b. INDIVIDUAL'S SURNAME STEWART FIRST PERSONAL NAME CHARLES ADDITIONAL NAME(S)/INITIAL(S) W. SUFFIX THE ABOVE SPACE IS FOR FILING OFFICE USE ONLY 10. DEBTOR'S NAME: Provide (10a or 10b) only one additional Debtor name or Debtor name that did not fit in line 1b or 2b of the Financing Statement (Form UCC1) use exact, full name; do not omit, modify, or abbreviate any part of the Debtor's name(s) and enter the mailing address in line 10c 10a. ORGANIZATION'S NAME OR 10b. INDIVIDUAL'S SURNAME INDIVIDUAL'S FIRST PERSONAL NAME INDIVIDUAL'S ADDITIONAL NAME(S)/INITIAL(S) SUFFIX 10c. MAILING ADDRESS CITY STATE POSTAL CODE COUNTRY 11. ☐ ADDITIONAL SECURED PARTY'S NAME or ☐ ASSIGNOR SECURED PARTY'S NAME: Provide only one name (11a or 11b) 11a. ORGANIZATION'S NAME OR 11b. INDIVIDUAL'S SURNAME FIRST PERSONAL NAME ADDITIONAL NAME(S)/INITIAL(S) SUFFIX 11c. MAILING ADDRESS CITY STATE POSTAL CODE COUNTRY 12. ADDITIONAL SPACE FOR ITEM 4 (Collateral): the wellhead or minehead of the well or mine located at: All of Borrower's undivided interest in oil, gas and other minerals (including all participating and non-participating interests) in, under and that may be produced from the following lands: The Southwest Quarter (SW/4) of Section Twenty-six (26), Township Twenty-four (24) North, Range Fourteen (14) WIM, Woods County, Oklahoma The Southeast Quarter of the Northwest Quarter (SE/4 NW/4), the Southwest Quarter of the Northeast Quarter... (Continued) 13. ☒ This FINANCING STATEMENT is to be filed (for record) (or recorded) in the REAL ESTATE RECORDS (if applicable) 14. This FINANCING STATEMENT: ☐ covers timber to be cut ☒ covers as-extracted collateral ☐ is filed as a fixture filing 15. Name and address of a RECORD OWNER of real estate described in item 16 (if Debtor does not have a record Interest): 16. Description of real estate: "As Extracted Collateral" will be financed at the wellhead or minehead of the well or mine located at: All of Borrower's undivided interest in oil, gas and other minerals (including all participating and non-participating interests) in, under and that may be produced from the following lands: The Southwest Quarter (SW/4) of Section Eight (8), Township Twenty-four (24) North, Range Twelve (12) WIM, Alfalfa... (Continued) 17. MISCELLANEOUS: UCC FINANCING STATEMENT ADDENDUM FOLLOW INSTRUCTIONS 9. NAME OF FIRST DEBTOR: Same as line 1a or 1b on Financing Statement; if line 1b was left blank because Individual Debtor name did not fit, check here □ 9a. ORGANIZATION'S NAME OR 9b. INDIVIDUAL'S SURNAME STEWART FIRST PERSONAL NAME CHARLES ADDITIONAL NAME(S)/INITIAL(S) W. THE ABOVE SPACE IS FOR FILING OFFICE USE ONLY 10. DEBTOR'S NAME: Provide (10a or 10b) only one additional Debtor name or Debtor name that did not fit in line 1b or 2b of the Financing Statement (Form UCC1) (use exact, full name; do not omit, modify, or abbreviate any part of the Debtor's name) and enter the mailing address in line 10c 10a. ORGANIZATION'S NAME OR 10b. INDIVIDUAL'S SURNAME INDIVIDUAL'S FIRST PERSONAL NAME INDIVIDUAL'S ADDITIONAL NAME(S)/INITIAL(S) SUFFIX 10c. MAILING ADDRESS CITY | STATE | POSTAL CODE | COUNTRY 11. □ ADDITIONAL SECURED PARTY'S NAME or □ ASSIGNOR SECURED PARTY'S NAME: Provide only one name (11a or 11b) 11a. ORGANIZATION'S NAME OR 11b. INDIVIDUAL'S SURNAME FIRST PERSONAL NAME ADDITIONAL NAME(S)/INITIAL(S) SUFFIX 11c. MAILING ADDRESS CITY | STATE | POSTAL CODE | COUNTRY 12. ADDITIONAL SPACE FOR ITEM 4 (Collateral): (SW/4 NE/4), the Northwest Quarter of the Southeast Quarter (NW/4SE/4), and the Southwest Quarter of the Southeast Quarter (SW/4SE/4) of Section Thirty-four (34), Township Twenty-four (24) North, Range Thirteen (13) WIM, Woods County, Oklahoma; The East Half of the Northeast Quarter (W/2 NE/4) of Section Thirty-five (35), Township Twenty-four (24) North, Range Thirteen (13) WIM, Woods County, Oklahoma; The West Half of the Northeast Quarter (W/2 NE/4) of Section Thirty-five (35), Township Twenty-four… (Continued) 13. [X] This FINANCING STATEMENT is to be filed (for record) (or recorded) in the REAL ESTATE RECORDS (if applicable) 14. This FINANCING STATEMENT: [ ] covers timber to be cut [X] covers as-extracted collateral [ ] is filed as a fixture filing 15. Name and address of a RECORD OWNER of real estate described in item 16 (if Debtor does not have a record interest): 16. Description of real estate: County, Oklahoma The Northeast Quarter (NE/4) of Section Nineteen (19), Township Twenty-four (24) North, Range Twelve (12) WIM, Alfalfa county, Oklahoma Lots One (1) and Two (2) and the East Half of the Northwest Quarter (E/2 NW/4) of Section Nineteen (19), Township Twenty-four (24) North, Range Twelve (12) WIM, Alfalfa county, Oklahoma, LESS AND EXCEPT a parcel of land in Lots 1 and 2 and the… 17. MISCELLANEOUS: ADDITIONAL COLLATERAL DESCRIPTION: (24) North, Range Thirteen (13) WIM, Woods County, Oklahoma; ACCOUNTS AND OTHER RIGHTS TO PAYMENT: All rights Debtor has now or in the future to payments including, but not limited to, payment for property or services sold, leased, rented, licensed, or assigned, whether or not Debtor has earned such payment by performance. This includes any rights and interests (including all liens and security interests) which Debtor may have by law or agreement against any account debtor or obligor of mine. GENERAL INTANGIBLES: All general intangibles including, but not limited to, tax refunds, applications for patents, patents, copyrights, trademarks, trade secrets, good will, trade names, customer lists, permits and franchises, payment intangibles, computer programs and all supporting information provided in connection with a transaction relating to computer programs, and the right to use Debtor's name. ADDITIONAL REAL ESTATE DESCRIPTION: East Half of the Northwest Quarter of Section 19, Township 24 North, Range 12 WIM, Alfalfa County, Oklahoma described as follows: Beginning at the Northwest corner of the Northwest Quarter of Section 19, thence East 1775.4 feet, thence South 468.6 feet, thence West 1775.4 feet, thence North 468.6 feet to the point of beginning, containing 19.1 acres more or less "As Extracted Collateral" will be financed at the wellhead or minehead of the well or mine located at: All of Borrower's undivided interest in oil, gas and other minerals (including all participating and non-participating interests) in, under and that may be produced from the following lands: The Southwest Quarter (SW/4) of Section Twenty-six (26), Township Twenty-four (24) North, Range Fourteen (14) WIM, Woods County, Oklahoma The Southeast Quarter of the Northwest Quarter (SE/4 NW/4), the Southwest Quarter of the Northeast Quarter (SW/4 NE/4), the Northwest Quarter of the Southeast Quarter (NW/4SE/4), and the Southwest Quarter of the Southeast Quarter (SW/4SE/4) of Section Thirty-four (34), Township Twenty-four (24) North, Range Thirteen (13) WIM, Woods County, Oklahoma; The East Half of the Northeast Quarter (W/2 NE/4) of Section Thirty-five (35), Township Twenty-four (24) North, Range Thirteen (13) WIM, Woods County, Oklahoma; The West Half of the Northeast Quarter (W/2 NE/4) of Section Thirty-five (35), Township Twenty-four (24) North, Range Thirteen (13) WIM, Woods County, Oklahoma; <table> <tr> <th>Item #</th> <th>Qty</th> <th>Year</th> <th>Manufacturer</th> <th>Model</th> <th>Type of Equipment</th> <th>Comments</th> <th>Condition</th> <th>Serial #</th> <th>Value</th> </tr> <tr> <td>1</td> <td>1</td> <td></td> <td>GARFIELD</td> <td></td> <td>BALE SPIKE</td> <td></td> <td>GOOD</td> <td></td> <td>$500.00</td> </tr> <tr> <td>4</td> <td>1</td> <td></td> <td>FLEX KING</td> <td></td> <td>CHISEL</td> <td>30 FT</td> <td>GOOD</td> <td></td> <td>$3,500.00</td> </tr> <tr> <td>8</td> <td>1</td> <td>1984</td> <td>SUNFLOWER</td> <td></td> <td>DISK</td> <td>30 FT</td> <td>GOOD</td> <td></td> <td>$12,000.00</td> </tr> <tr> <td>9</td> <td>1</td> <td></td> <td>GREAT PLAINS</td> <td></td> <td>DRILL</td> <td>30 FT</td> <td>GOOD</td> <td></td> <td>$3,250.00</td> </tr> <tr> <td>10</td> <td>1</td> <td></td> <td>JOHN DEERE</td> <td>7520</td> <td>AIR DRILL</td> <td></td> <td>GOOD</td> <td></td> <td>$17,500.00</td> </tr> <tr> <td>11</td> <td>1</td> <td></td> <td>JOHN DEERE</td> <td>8570</td> <td>TRACTOR</td> <td></td> <td>GOOD</td> <td></td> <td>$35,000.00</td> </tr> <tr> <td>14</td> <td>1</td> <td></td> <td>BLANCHET</td> <td></td> <td>PLOW</td> <td></td> <td>GOOD</td> <td></td> <td>$8,800.00</td> </tr> <tr> <td>15</td> <td>1</td> <td></td> <td></td> <td></td> <td>TOOLS</td> <td></td> <td>GOOD</td> <td></td> <td>$5,000.00</td> </tr> <tr> <td>16</td> <td>1</td> <td></td> <td>JOHN DEERE</td> <td>970R</td> <td>MOWER</td> <td></td> <td>GOOD</td> <td></td> <td>$3,500.00</td> </tr> <tr> <td>18</td> <td>1</td> <td></td> <td>FLEX KING</td> <td></td> <td>SWEET PLOW</td> <td>25 FT</td> <td>GOOD</td> <td></td> <td>$3,500.00</td> </tr> <tr> <td>19</td> <td>1</td> <td></td> <td>CASE</td> <td>WRX-301</td> <td>WHEEL RAKE</td> <td></td> <td>GOOD</td> <td></td> <td>$8,000.00</td> </tr> <tr> <td>20</td> <td>1</td> <td></td> <td></td> <td>TSF-106</td> <td>SPRAYER</td> <td></td> <td>GOOD</td> <td></td> <td>$12,500.00</td> </tr> <tr> <td>22</td> <td>1</td> <td></td> <td>FERTILIZER TANK &amp; PUMP</td> <td></td> <td></td> <td></td> <td>GOOD</td> <td></td> <td>$500.00</td> </tr> <tr> <td>23</td> <td>1</td> <td>1972</td> <td>JOHN DEERE</td> <td>4020</td> <td>TRACTOR</td> <td>WITH LOADER</td> <td>GOOD</td> <td></td> <td>$12,500.00</td> </tr> <tr> <td>24</td> <td>1</td> <td>1980</td> <td>JOHN DEERE</td> <td>4440</td> <td>TRACTOR</td> <td>WITH LOADER</td> <td>GOOD</td> <td></td> <td>$22,500.00</td> </tr> <tr> <td>25</td> <td>1</td> <td></td> <td>STEIGER</td> <td>ST7280</td> <td>TRACTOR</td> <td></td> <td>GOOD</td> <td></td> <td>$10,000.00</td> </tr> <tr> <td>26</td> <td>1</td> <td></td> <td>JOHN DEERE</td> <td>4450</td> <td>TRACTOR</td> <td>ROW CROPO</td> <td>GOOD</td> <td></td> <td>$25,000.00</td> </tr> <tr> <td>27</td> <td>1</td> <td></td> <td></td> <td></td> <td>TRAILER</td> <td>FLAT BED 33X96</td> <td>FAIR</td> <td></td> <td>$5,000.00</td> </tr> <tr> <td>28</td> <td>1</td> <td></td> <td>NECKOVER</td> <td></td> <td>TRAILER</td> <td>8X24</td> <td>FAIR</td> <td></td> <td>$5,000.00</td> </tr> <tr> <td>29</td> <td>1</td> <td>1976</td> <td>TEMPTA</td> <td></td> <td>TRAILER</td> <td>44 FT GRAIN</td> <td>FAIR</td> <td></td> <td>$6,000.00</td> </tr> <tr> <td>30</td> <td>1</td> <td>1998</td> <td>INTERNATIONAL</td> <td></td> <td>SEMI</td> <td></td> <td>FAIR</td> <td></td> <td>$7,000.00</td> </tr> <tr> <td>31</td> <td>1</td> <td>1986</td> <td>PETERBILT</td> <td></td> <td>SEMI</td> <td></td> <td>FAIR</td> <td></td> <td>$6,000.00</td> </tr> <tr> <td>32</td> <td>1</td> <td>2004</td> <td>DODGE</td> <td>2500</td> <td>TRUCK</td> <td></td> <td>FAIR</td> <td></td> <td>$3,000.00</td> </tr> <tr> <td>33</td> <td>1</td> <td>2011</td> <td>DODGE</td> <td>2500</td> <td>TRUCK</td> <td></td> <td>GOOD</td> <td></td> <td>$12,000.00</td> </tr> <tr> <td>34</td> <td>1</td> <td>2014</td> <td>POLARIS</td> <td>RANGER</td> <td></td> <td></td> <td>GOOD</td> <td></td> <td>$4,000.00</td> </tr> </table> Total Appraised Value of Equipment on This Page: $228,500.00