Farm Credit of Western Oklahoma, FLCA v. Brian D. Sager

IN THE DISTRICT COURT OF BEAVER COUNTY STATE OF OKLAHOMA Farm Credit of Western Oklahoma, FLCA, a wholly owned subsidiary of Farm Credit of Western Oklahoma, ACA, Plaintiff, vs. Brian D. Sager and Amy K. Sager, husband and wife; Shelly Thomas, Beaver County Treasurer; Blue Heron Land Associates, LLC, a Delaware limited liability company; and Cimarron Link Transmission LLC, a Delaware limited liability company, Defendants. Case No. CJ-2025-17 PETITION COMES NOW the Plaintiff, and for its cause of action against the Defendants, alleges and states as follows: 1. This Court has jurisdiction over the parties and the subject matter of this action and venue is properly situated in Beaver County, Oklahoma. FIRST CAUSE OF ACTION 2. That on or about the 20th day of July, 2017, Brian D. Sager and Amy K. Sager, husband and wife (collectively, the “Borrowers”), for good and valuable consideration, made, executed and delivered to Farm Credit of Western Oklahoma, FLCA, a wholly owned subsidiary of Farm Credit of Western Oklahoma, ACA ("Farm Credit"), Promissory Note #2715333 in writing by the terms of which said Borrowers promised to pay to the order of Farm Credit the principal sum of $1,300,000.00, together with interest thereon as stated within said note, whereby Borrowers became liable and bound to pay the sums therein specified (hereinafter, "Note #2715333"). A true and correct copy of Note #2715333 is attached hereto as Exhibit "A" and is incorporated herein and made a part hereof. Plaintiff is the current owner and holder of Note #2715333. 3. Plaintiff further alleges that the terms and conditions of Note #2715333 have been broken in that said Borrowers, despite proper demand, have wholly failed and refused to make the payments on said Note in accordance with the terms thereof and that Note #2715333 is now in default. Plaintiff has elected to accelerate all indebtedness due and owing under Note #2715333 and to declare all of the sums specified therein as immediately due and payable and that there is now due and payable on Note #2715333 principal and interest in the amount of $1,239,101.34 as of August 6, 2025, together with a daily accrual of interest thereon at the rate of $208.99 per day from and after August 6, 2025, until paid. Plaintiff is further entitled to judgment over and against the Borrowers for the reasonable attorney fees incurred herein, and for the costs of this action, including abstracting expenses, costs of collection and preservation of collateral, unpaid ad valorem taxes and costs to maintain said property. 4. That as part and parcel of the same transaction and for the purpose of securing the payment of Note #2715333 and the indebtedness due and owing thereunder, as set out above, the Borrowers made, executed and delivered to Plaintiff a real estate mortgage dated July 20, 2017 covering the following described real estate (hereinafter collectively described as "Tract 1") situated in Beaver County, Oklahoma, and further described as follows, to-wit: The East Half of the East Half (E/2 E/2) and the West Half of the Northeast Quarter (W/2 NE/4) of Section Thirty-two (32), Township Three (3) North, Range Twenty-five (25) East of the Cimarron Meridian, Beaver County, Oklahoma; and The West Half (W/2) and the Southeast Quarter (SE/4) of Section Fourteen (14), Township Two (2) North, Range Twenty-five (25) East of the Cimarron Meridian, Beaver County, Oklahoma; and The Northeast Quarter (NE/4), the South Half (S/2), the East Half of the Northwest Quarter (E/2 NW/4) and the Southwest Quarter of the Northwest Quarter (SW/4 NW/4) of Section Fifteen (15), Township Two (2) North, Range Twenty-five (25) East of the Cimarron Meridian, Beaver County, Oklahoma; and The East Half (E/2) and the East Half of the Northwest Quarter (E/2 NW/4) of Section Twenty (20), Township Two (2) North, Range Twenty-five (25) East of the Cimarron Meridian, Beaver County, Oklahoma; and The East Half (E/2) and the Southwest Quarter (SW/4) of Section Twenty-one (21), Township Two (2) North, Range Twenty-five (25) East of the Cimarron Meridian, Beaver County, Oklahoma; and The Northwest Quarter (NW/4), the South Half of the Southwest Quarter (S/2 SW/4), the Northwest Quarter of the Southwest Quarter (NW/4 SW/4) and the Southwest Quarter of the Southeast Quarter (SW/4 SE/4) of Section Twenty-two (22), Township Two (2) North, Range Twenty-five (25) East of the Cimarron Meridian, Beaver County, Oklahoma; and All of Section Twenty-three (23), Township Two (2) North, Range Twenty-five (25) East of the Cimarron Meridian, Beaver County, Oklahoma; and The West Half (W/2) of Section Twenty-four (24), Township Two (2) North, Range Twenty-one (21) East of the Cimarron Meridian, Beaver County, Oklahoma, Less and Except the following described tract of land: Beginning at the Southeast corner of the Southwest Quarter (SW/4) of said Section 24; Thence N00°03'20"W along the East line of said SW/4 a distance of 1190.00 feet to a point; Thence S89°57'50"W paralleling the South line of said SW/4 a distance of 1401.50 feet to a point; Thence N00°02'03"W paralleling the West line of said SW/4 a distance of 176.07 feet to a point; Thence S89°57'50"W paralleling the South line of said SW/4 a distance of 1234.14 feet to a point on the West line of said SW/4; Thence S00°02'03"E along said West line a distance of 1168.41 feet to a point; Thence N89°57'50"E paralleling the South line of said SW/4 a distance of 175.82 feet to a point; Thence S00°02'03"E paralleling the West line of said SW/4 a distance of 197.66 feet to a point on the South line of said SW/4; Thence N89°57'50"E along said South line a distance of 2460.26 feet to the point of beginning, said excepted tract containing 76.20 acres, more or less. Together with all of Mortgagor’s right, title and interest in that certain water well easement across the 76.20 acre tract in the W/2 of Section Twenty-four (24), Township Two (2) North, Range Twenty-one (21) East of the Cimarron Meridian excluded from the above legal description, which easement is recorded in Book 1261 on Page 458 of the records of the Court Clerk of Beaver County, Oklahoma. Together with all water rights, all wells and sprinkler systems and other irrigation equipment used for the irrigation of said lands, all irrigation permits associated therewith, and security interest in all wells, pumps, equipment and sprinkler systems used for irrigation of the lands described above including all future additions to, replacements of or substitutions for any of such items. Less and Except those tracts conveyed to the State of Oklahoma in deeds recorded in Book 87 on Pages 43, 44, 45, 46, 49 and 171, and in Book 711 on Pages 183, 185, 187, 189 and 191, and in Book 712 on Pages 265 and 267 of the records of the County Clerk of Beaver County, Oklahoma. Said mortgage was filed for record in the office of the County Clerk of Beaver County on July 20, 2017, and recorded in Book 1361, Pages 536-540 (herein, the “FC Tract 1 Mortgage”). A true and correct copy of the FC Tract 1 Mortgage with the endorsements thereon is attached hereto as Exhibit "B" and is incorporated herein and made a part hereof. 5. That default has been made in the terms and conditions of the FC Tract 1 Mortgage and the indebtedness secured thereby has not been paid, notwithstanding the fact that due and proper demand has been made for the payment thereof. 6. Plaintiff is the owner and holder of the FC Tract 1 Mortgage and the indebtedness evidenced and secured thereby. That by reason of said default as alleged, Plaintiff is entitled to accelerate all amounts due and owing under Note #2715333 and to have the FC Tract 1 Mortgage adjudged and decreed to be a valid first lien upon Tract 1, securing all of the indebtedness due and owing on Note #2715333, and to have the FC Tract 1 Mortgage foreclosed and to have said property sold, with appraisement, to satisfy said indebtedness. 7. That the Borrowers may claim some right, title, lien, estate or interest in and to Tract 1, or some part thereof, adverse to the rights of Plaintiff, but Plaintiff alleges and states that any right, title, claim or interest of said Defendants in and to Tract 1 or any portion thereof is junior, inferior, subordinate and subject to Plaintiff's Mortgage and the lien thereof. 8. That the Defendant, Shelly Thomas, Beaver County Treasurer, may claim some right, title or interest in and to the subject matter of this action by reason of any unpaid ad valorem taxes. 9. That each and all of the Defendants in this action assert or claim to have some adverse title to, interest in, or lien upon Tract 1 and the subject matter of this action, or some part or portion thereof, by virtue of the instruments, claims or facts as hereinbefore set forth, or by virtue of some other instruments, claims or facts, the exact nature and extent of which the Plaintiff is unable to set forth for the reason that the same are not known to it, but Plaintiff alleges that all such claims, title, or liens, if the same in fact exist and regardless of the nature and extent thereof, are junior, inferior and subordinate to the rights of the Plaintiff and the lien of the FC Tract 1 Mortgage and security agreement as herein sued upon; and that each of said Defendants should be required to appear herein and set forth their respective claims, rights, interests or liens, if any, and that they and each of them should be forever barred, foreclosed and precluded from ever having, asserting or claiming to have any right, title, interest, estate, equity or lien whatever in or to said premises, or any part or portion thereof. SECOND CAUSE OF ACTION 10. The allegations set forth in paragraphs 1 through 9 are incorporated herein and made a part hereof. 11. That on or about the 24th day of April, 2018, the Borrowers, for good and valuable consideration, made, executed and delivered to Farm Credit Promissory Note #2720954 in writing by the terms of which said Borrowers promised to pay to the order of Farm Credit the principal sum of $463,000.00, together with interest thereon as stated within said note, whereby Borrowers became liable and bound to pay the sums therein specified (hereinafter, “Note #2720954”). A true and correct copy of Note #2720954, together with that certain Reamortization Agreement dated June 21, 2019, is attached hereto as Exhibit "C" and is incorporated herein and made a part hereof. Plaintiff is the current owner and holder of Note #2720954. 12. Plaintiff further alleges that the terms and conditions of Note #2720954 have been broken in that said Borrowers, despite proper demand, have wholly failed and refused to make the payments on said Note in accordance with the terms thereof and that Note #2720954 is now in default. Plaintiff has elected to accelerate all indebtedness due and owing under Note #2720954 and to declare all of the sums specified therein as immediately due and payable and that there is now due and payable on Note #2720954 principal and interest in the amount of $397,098.20 as of August 6, 2025, together with a daily accrual of interest thereon at the rate of $67.75 per day from and after August 6, 2025, until paid. Plaintiff is further entitled to judgment over and against the Borrowers for the reasonable attorney fees incurred herein, and for the costs of this action, including abstracting expenses, costs of collection and preservation of collateral, unpaid ad valorem taxes and costs to maintain said property. 13. That as part and parcel of the same transaction and for the purpose of securing the payment of Note #2720954 and the indebtedness due and owing thereunder, as set out above, the Borrowers made, executed and delivered to Plaintiff a real estate mortgage dated April 24, 2018 covering the following described real estate (hereinafter collectively described as "Tract 2") situated in Beaver County, Oklahoma, and further described as follows, to-wit: All of Section Six (6), Township Two (2) North, Range Twenty-five (25) East of the Cimarron Meridian, Beaver County, Oklahoma, Less and Except the following described tract: Commencing at the Southwest corner of said Section 6; Thence South 88°49'57" East along the South line of the South Half of said Section 6 a distance of 1510.06 feet to the Point of Beginning; Thence North 01°10'03" East a distance of 375.57 feet; Thence South 87°02'59" East a distance of 145.29 feet; Thence North 02°49'41" East a distance of 79.39 feet; Thence South 87°37'51" East a distance of 934.68 feet; Thence South 00°57'34" West a distance of 430.81 feet to a point on the South line of said Section 6; Thence North 88°49'57" West along said South line a distance of 1083.57 feet to the point of beginning, said excepted tract containing 10.73 acres, more or less; and The Northwest Quarter (NW/4) of Section Twenty-eight (28), Township Two (2) North, Range Twenty-five (25) East of the Cimarron Meridian, Beaver County, Oklahoma; and The Northeast Quarter (NE/4) of Section Twenty-nine (29), Township Two (2) North, Range Twenty-five (25) East of the Cimarron Meridian, Beaver County, Oklahoma. Said mortgage was filed for record in the office of the County Clerk of Beaver County on April 24, 2018, and recorded in Book 1371, Pages 674-678 (herein, the “FC Tract 2 Mortgage”). A true and correct copy of the FC Tract 2 Mortgage with the endorsements thereon is attached hereto as Exhibit "D" and is incorporated herein and made a part hereof. 14. That default has been made in the terms and conditions of the FC Tract 2 Mortgage and the indebtedness secured thereby has not been paid, notwithstanding the fact that due and proper demand has been made for the payment thereof. 15. Plaintiff is the owner and holder of the FC Tract 2 Mortgage and the indebtedness evidenced and secured thereby. That by reason of said default as alleged, Plaintiff is entitled to accelerate all amounts due and owing under Note #2720954 and to have the FC Tract 2 Mortgage adjudged and decreed to be a valid first lien upon Tract 2, securing all of the indebtedness due and owing on Note #2720954, and to have the FC Tract 2 Mortgage foreclosed and to have said property sold, with appraisement, to satisfy said indebtedness. 16. That the Borrowers may claim some right, title, lien, estate or interest in and to Tract 2, or some part thereof, adverse to the rights of Plaintiff, but Plaintiff alleges and states that any right, title, claim or interest of said Defendants in and to Tract 2 or any portion thereof is junior, inferior, subordinate and subject to Plaintiff's Mortgage and the lien thereof. 17. That the Defendant, Blue Heron Land Associates, LLC, a Delaware limited liability company, may claim some right, title, estate or interest in and to Tract 2, or some part thereof, by virtue of that certain Option and Transmission Easement dated November 17, 2023, and recorded with the Beaver County Clerk on December 5, 2023, in Book 1449 Misc., Pages 63-71. However, Plaintiff alleges and states that any right, title, claim or interest of said Defendant in and to Tract 2 or any portion thereof is junior, inferior, subordinate and subject to the FC Tract 2 Mortgage and the lien thereof. 18. That the Defendant, Cimarron Link Transmission LLC, a Delaware limited liability company, may claim some right, title, estate or interest in and to Tract 2, or some part thereof, by virtue of that certain Memorandum of Transmission Easement Agreement dated April 25, 2024, and recorded with the Beaver County Clerk on May 1, 2024, in Book 1455 Misc., Pages 260-266, and that certain unrecorded Transmission Easement Agreement referenced therein. However, Plaintiff alleges and states that any right, title, claim or interest of said Defendant in and to Tract 2 or any portion thereof is junior, inferior, subordinate and subject to the FC Tract 2 Mortgage and the lien thereof. 19. That the Defendant, Shelly Thomas, Beaver County Treasurer, may claim some right, title or interest in and to the subject matter of this action by reason of any unpaid ad valorem taxes. 20. That each and all of the Defendants in this action assert or claim to have some adverse title to, interest in, or lien upon Tract 2 and the subject matter of this action, or some part or portion thereof, by virtue of the instruments, claims or facts as hereinbefore set forth, or by virtue of some other instruments, claims or facts, the exact nature and extent of which the Plaintiff is unable to set forth for the reason that the same are not known to it, but Plaintiff alleges that all such claims, title, or liens, if the same in fact exist and regardless of the nature and extent thereof, are junior, inferior and subordinate to the rights of the Plaintiff and the lien of the FC Tract 2 Mortgage and security agreement as herein sued upon; and that each of said Defendants should be required to appear herein and set forth their respective claims, rights, interests or liens, if any, and that they and each of them should be forever barred, foreclosed and precluded from ever having, asserting or claiming to have any right, title, interest, estate, equity or lien whatever in or to said premises, or any part or portion thereof. WHEREFORE, premises considered, Plaintiff prays for judgment as follows: A. In personam, against the Defendants, Brian D. Sager and Amy K. Sager, husband and wife, both jointly and severally, as follows: (i) in the amount of $1,239,101.34 as of August 6, 2025, plus all interest, late fees, penalties and other charges continuing to accrue on said amount as authorized pursuant to Note #2715333, from and after August 6, 2025, until paid; and (ii) in the amount of $397,098.20 as of August 6, 2025, plus all interest, late fees, penalties and other charges continuing to accrue on said amount as authorized pursuant to Note #2720954, from and after August 6, 2025, until paid; and (iii) together with all attorney fees, litigation expenses, court costs and other costs of collection incurred herein, including, but not limited to, abstracting expenses, unpaid ad valorem taxes, insurance expenses and all other costs to maintain the collateral (collectively, the “Secured Indebtedness”). B. In rem, against each and every Defendant, ordering that their respective interests in and to Tract 1 and Tract 2 (collectively, the “Real Property”) be foreclosed and that Plaintiff's interest in the Real Property be declared to be superior to said Defendants and unencumbered and free and clear of any interests claimed by said Defendants. C. Ordering the Real Property sold as provided by law, with appraisement, to satisfy the Secured Indebtedness, the proceeds arising from said sale to be applied in the following order: (i) the cost of such sale; (ii) to Plaintiff in satisfaction of the Secured Indebtedness; and (iii) the surplus, if any, to be paid into the Court to abide further order of the Court. D. Ordering that all right, title and interest of each and every Defendant in and to the Real Property is subject, junior and inferior to Plaintiff’s interest in the Real Property; and upon Sheriff's sale of the Real Property, said Defendants and any persons claiming by, through or under them since the commencement of this action be forever barred, foreclosed and enjoined from asserting or claiming any right, title, interest, estate or equity of redemption in and to the Real Property or any part thereof. E. In personam against the Defendants, Brian D. Sager and Amy K. Sager, husband and wife, both jointly and severally, for any portion of the Secured Indebtedness which is not satisfied following the sale of the Real Property. F. Granting Plaintiff, or any purchaser at Sheriff's sale, to possession. G. A Decree of this Court forever barring the Defendants and their successors from hereinafter asserting or claiming any right, title or interest in the Real Property and granting Plaintiff such other and further relief as the Court may deem just and proper. Cody Hodgden, OBA # 16665 Hodgden Law Firm, PLLC P. O. Box 529 Woodward, Oklahoma 73802 (580) 256-5517 (phone) (580) 256-8459 (fax) Attorneys for Plaintiff NOTE AND LOAN AGREEMENT (Subsequently called the "Note" or "Loan Agreement") Association No. 628-02 For value received, the undersigned ("Borrower" whether one or more) jointly and severally, promise to pay TO THE ORDER OF Farm Credit of Western Oklahoma, F.L.C.A., a wholly owned subsidiary of Farm Credit of Western Oklahoma ACA ("Lender"), at Lender's offices, the principal sum of $1,300,000.00 with a beginning interest rate of 6.30% per annum starting July 20, 2017 on the unmatured principal. If checked, this Note amends and restates a note dated _______. This Note is executed and accepted as an amendment and restatement of, and not in payment or satisfaction of, the following promissory note(s) executed by Borrower and payable to Lender: Date: Face Amount: Maturity Date: REPAYMENT WILL BE AS FOLLOWS: Due and payable in sixty (60) semiannual installments on the 1st day of each successive May and November, as follows: The first installment shall consist of principal in the amount of $7,542.61 plus accrued interest, in the amount billed and shall be due and payable on May 01, 2018. The next fifty eight (58) installments shall consist of principal and accrued interest in the amount of $48,492.61, and any remaining balance of principal and interest will mature, become fully due and payable, and shall be repaid no later than the ending term date of November 1, 2047. PROVIDED, however, (1) if the period from the date of disbursement or conversion of the principal sum to the date of the initial installment is more or less than the regular installment period, the amount may be increased or decreased, so as to reflect interest actually accruing for that period; (2) when any different rate of interest is established, as provided below, the amount of each subsequent installment shall be increased or decreased to reflect the increase or decrease in the interest rate, but the due date of the increased or decreased installment shall remain as provided above; and (3) if any advance payment is made, it shall not operate to reduce the dollar amount of the payments evidenced by this Note, except as Lender may determine at its sole option. FIXED INTEREST RATE The stated beginning interest rate of this loan shall be fixed until maturity of the loan, excluding late payment interest or penalties, default interest or the effect of any reinvestment fee(s). REINVESTMENT FEE REQUIRED FOR PREPAYMENT. If checked, Borrower agrees to pay a reinvestment fee as defined in the attached Prepayment Addendum. LATE PAYMENT FEE. If checked, borrower agrees to pay a late payment penalty of 2.00% above billing rate on installments not paid in full within ten (10) days of scheduled payment date and continuing until loan is brought current on all payments of: (1) principal and interest not paid when due; and (2) other payments including insurance, taxes, etc. not paid when due if Lender advances to make the payments. SECURITY. This Note is secured by a mortgage and security agreement or deed of trust and security agreement dated July 20, 2017 and/or security agreement dated N/A and by all Collateral described in any other security agreement, mortgage and security agreement or deed of trust and security agreement executed by any Borrower in favor of Lender, whether now existing or hereafter entered into. STANDARD PROVISIONS BORROWER OBLIGATIONS AND AGREEMENTS: While this Loan Agreement is in effect Borrower will: (1) at Lender's request, furnish information to Lender relating to Borrower's business and financial affairs and permit Lender to examine Borrower's books and records; (2) maintain all loans and indebtedness in a current status, including without limitation all indebtedness to Lender; (3) allow Lender to inspect and appraise Lender's collateral; (4) utilize loan proceeds only for the stated purpose; (5) promptly notify Lender of any potential material adverse change in its business or financial condition or any possible default under this or any other loan agreement with Lender or with any other lender; (6) execute all other documents as Lender may lawfully require in connection with this loan; (7) comply with all terms and conditions of all documents executed in connection with this loan; and (8) at Lender's request, submit an annual verifiable balance sheet and income statement as of Borrower's fiscal year end. ADDITIONAL COLLATERAL. Lender may request additional collateral for this loan from time to time in accordance with applicable Federal law, including, without limitation, requests for a security interest in Lender's "Installment Fund" and "Reserve Fund" programs. Borrower agrees to deliver additional collateral as Lender may, in good faith, request. LIMITATIONS ON DISBURSEMENTS. Lender may limit or withhold disbursements under the following circumstances: (1) if Lender, in its sole judgment, determines that the amount of the outstanding indebtedness plus the requested disbursement exceeds the net realizable value of the collateral given for this loan; (2) if Borrower is in default under this, or any other, agreement with this Lender or with any other lender; (3) if Borrower fails to provide additional collateral on Lender's request; (4) if the requested disbursement, together with the current unpaid principal balance, exceeds the commitment amount, the Note amount, or , if applicable, the stated maximum outstanding balance; or (5) if Lender's funding source is unavailable. STOCK PURCHASE, LIEN AND CONVERSION. Stock purchase and conversion shall be according to the terms, conditions and designations outlined in applicable federal law governing the Farm Credit System, regulations of the Farm Credit Administration and Lender's bylaws. Borrower acknowledges that: (1) the principal sum of this Note includes any sums borrowed to purchase the maximum amount of stock; (2) Lender has a first lien on Borrower's stock; and, (3) stock retirement will be in accordance with applicable law, regulations and Lender's bylaws governing retirement. DEFAULT. In the event of default under this Loan Agreement, Borrower agrees that Lender may retire stock, not to exceed par value or face amount, together with any applicable dividends, earnings, patronage refunds or their equivalent, and apply the proceeds to principal and/or interest according to applicable law, regulations and Lender's bylaws in effect at the time of retirement. INVESTMENT. Federal law requires you to purchase stock in your association when you obtain a loan. Voting stock is purchased by farmers, ranchers and agribusinesses eligible to borrow from your association. Non-voting stock is held by certain farm-related businesses and rural home owners. Holders of non-voting stock do not have general voting rights and are not eligible to serve on the board of directors. In all other respects, voting and non-voting stock carry the same rights and privileges. Stock purchased on or after October 6, 1988, is at risk and is not protected. Stock is not a compensating balance. Association boards of directors are authorized to retire at-risk stock on loan repayment if the board determines those funds are not necessary to meet the capital requirements of the association. Your Farm Credit institution currently meets the minimum capital requirements necessary to retire stock and knows of no reason why it will not meet those requirements in the future. DISCLOSURE CONSENT. Borrower agrees that Lender may disclose Borrower's financial information to any consumer reporting agency and/or other Farm Credit System institutions. The Lender may verify all information Borrower discloses; it may also check credit, financial, employment, and income records of the Borrower, and if either a partnership or joint venture of its partners or members, and of each guarantor; the Lender may also answer inquiries about its credit experience with the Borrower. DEFAULT. Borrower is in default under this Note under the following circumstances: (1) Borrower fails to repay principal or interest as set forth in this Note; (2) Borrower is in default in the observance or performance of any covenant, term, representation, or agreement in connection with the loan represented by this Loan Agreement or in connection with any loan agreement, note or instrument now existing, or hereafter executed by Borrower in favor of Lender or any other lender; (3) if any of Borrower's representations to Lender or any other lender in connection with any loan prove to be materially false; (4) Lender determines, in its sole discretion, that Borrower is unable to repay the indebtedness evidenced by this Note or Lender otherwise deems itself insecure; (5) Borrower fails to use loan proceeds for the stated purpose; (6) if, solely in Lender's judgment, Borrower has experienced a material adverse change in its business or financial condition; (7) death, dissolution, termination of existence, insolvency, business failure, petition for or appointment of a receiver, assignment for the benefit of creditors by, or commencement of any proceeding under any bankruptcy or insolvency law by or against Borrower, or any guarantor, endorser, or surety for Borrower. REMEDIES. In the event of default on this loan, Borrower agrees the Lender may, in Lender's sole discretion, apply from time to time, any funds in Lender's Installment Fund and Reserve Fund to any indebtedness of Borrower, to be applied first to unpaid interest and then to unpaid principal. On default and acceleration, Lender may exercise all legal rights and remedies including, but not limited to, rights and remedies stated in mortgages and security agreements. Exercise of any right or remedy shall not exclude exercise of any other right or remedy. Advances made by Lender shall become a part of the debt evidenced by this Note, and the mortgage and security agreement, deed of trust and security agreement or security agreement which also state additional conditions under which the entire debt may be accelerated and become immediately due and will be subject to interest and default interest. DEFAULT INTEREST AND ACCELERATION. In the event of default the interest rate shall be 2% above the then existing billing rate. On Borrower's default, and at Lender's option, all unpaid principal, including amounts advanced for taxes, insurance, etc., interest and default interest, shall become immediately due and payable without notice or demand by Lender. Lender may continue to charge interest, including default interest, on the accelerated amount. WAIVER. Any delay or omission by Lender in exercising a right or remedy shall not waive that right or remedy or any other right or remedy. Any explicit waiver of default by Lender must be in writing and signed by Lender. No waiver of default by Lender shall operate as a waiver of any other default or of the same default on a future occasion. LEGAL FEES. If this loan is placed in the hands of an attorney for collection or to protect or enforce any of Lender's rights in bankruptcy or otherwise, Lender may collect from Borrower its attorney fees, court costs and other expenses as provided by applicable law. If allowed by law, all of these amounts shall be secured by security for this loan and shall become principal under this loan. These expenses shall be immediately payable and shall bear interest as provided in this Note. Lender shall solely determine the propriety of paying these expenses and Borrower shall have no action against Lender under this paragraph. EVIDENCE. Lender's records shall be prima facie evidence of the balance owing Lender and Borrower shall bear the burden of showing any fault or error. WAIVER OF DEMAND. Borrower, and any endorser, surety or guarantor of this Note, severally waive presentment for payment, demand, notice of nonpayment, protest and notice of protest, and diligence in enforcing payment of this Note. WAIVER OF JURY TRIAL. Borrower, and any endorser, surety or guarantor of this Note, waive all rights to a jury trial. RELEASE AND EXTENSION. Borrower, and any endorser, surety or guarantor of this Note, severally agree that Lender may at any time, without notice, release all or any part of the security for this Note (including all or any part of the premises covered by the referenced mortgage and security agreement or deed of trust and security agreement); grant extensions, deferments, renewals or reamortizations of any part of the debt evidenced by this Note, and release from personal liability any one or more of the parties who are or may become liable for this debt; all without affecting the personal liability of any other party. SAVINGS CLAUSE. If any provisions of this Note are found to be invalid or unenforceable, they shall no longer be considered to be a part of this Note. The remaining provisions shall be valid and enforceable. AGENCY APPOINTMENT. Each Borrower appoints every other Borrower as his or her agent for purposes of the obligations of this loan. Borrower acknowledges that Lender may conduct transactions with any Borrower as if it were conducting transactions with all Borrowers. This authority shall continue until Borrower revokes or terminates it by giving written notice to Lender. MERGER. This Note supersedes all prior oral negotiations, representations, and promises which are merged into this writing. This Note, and any amendments, modifications or extensions to it and loan and security agreements executed by Borrower and Lender, constitute the entire agreement between Borrower and Lender. BORROWER'S REPRESENTATIONS AND WARRANTIES. Each Borrower represents and warrants that it and each other Borrower (a) is duly organized, validly existing and in good standing under the laws of its jurisdiction of organization and (b) has full power to enter into, execute, deliver and perform its obligations under this Loan Agreement, and all such actions have been duly authorized by all necessary proceedings on its part. This Loan Agreement constitutes a legal, valid and binding obligation of each Borrower, enforceable against each such Borrower in accordance with its terms except to the extent that such enforceability may be limited by applicable bankruptcy, insolvency or similar laws or equitable principles affecting creditors' rights generally, and shall be binding upon such Borrower's heirs, legal representatives, successors and assigns, and upon the estate of any deceased Borrower the same as if death of such Borrower had not occurred. The terms and conditions of this Loan Agreement do not contravene the terms and conditions of any other contract(s) of the Borrower, all of Borrower's representations and warranties in connection with this loan are true and accurate, and Borrower is not involved in, and has no expectations of involvement in, any legal action that might impair Borrower's financial condition or ability to continue business. CAPTIONS. Captions used in this Note are inserted only as a matter of convenience and for reference, and in no way define, limit or describe the scope or intent of any term or provision. APPLICABLE LAW. Enforcement of this Note and any mortgage and security agreement, deed of trust and security agreement, any security agreement or any other document related thereto shall be governed by federal laws to the extent applicable, and shall otherwise be governed by the laws of the state in which the Lender’s principal office is located. PARTIES BOUND. Each person signing this Note is a Borrower and the obligations and covenants of all Borrowers under this note are joint and several unless otherwise noted. This Note is binding on all parties and their respective heirs, estates, personal representatives, successors and assigns. SPECIAL CONDITIONS. If checked, in addition to the STANDARD PROVISIONS Borrower agrees to the following special conditions: • Borrower(s) to provide annual Balance Sheets and Tax Returns. • Provided insurance is maintained on collateral at a level acceptable to Farm Credit of Western Oklahoma (FCWO) with FCWO as loss payee. INITIAL 6-MONTH PREPAYMENT LOCK-OUT FEE. If Borrower makes any unscheduled prepayment (full or partial) within the initial 6-months of this Note or within 6 months following any conversion, refinancing or other event that results in this Note being repriced, then Borrower shall pay a fee equal to the sum of (a) any amount charged to Lender with respect to such prepayment by any farm credit bank or other provider of financing or funding to Lender, plus (b) any other cost or loss suffered by Lender as a result of the prepayment (collectively, a “Reinvestment Fee”). Borrower acknowledges that the amount of a Reinvestment Fee can be significant and acknowledges that Borrower should request the proposed Reinvestment Fee before making any prepayment that would be subject to this provision. ACKNOWLEDGMENT Borrower acknowledges receiving the following documents prior to closing: 1. Annual Report and Quarterly Report, if newer than the Annual Report. 2. Capitalization By-laws. 3. Effective Interest Rate or Annual Percentage Rate Disclosure. TRUST FUND AGREEMENT Borrower acknowledges receiving a copy of the “Trust Fund Agreement”, the terms and conditions of which are incorporated herein by reference as part of this Note as if fully set out herein, and Borrower agrees to abide by all terms and conditions set forth therein. THIS WRITTEN LOAN AGREEMENT IS THE FINAL EXPRESSION OF THE AGREEMENT BETWEEN BORROWER AND LENDER AND MAY NOT BE CONTRADICTED BY EVIDENCE OF ANY PRIOR OR CONTEMPORANEOUS ORAL LOAN AGREEMENT BETWEEN THE BORROWER AND THE LENDER. THE PARTIES AFFIRM THAT NO UNWRITTEN ORAL LOAN AGREEMENT EXISTS BETWEEN THEM. I agree to the terms of the Note and acknowledge receiving a copy. Farm Credit of Western Oklahoma, FLCA, a wholly owned subsidiary of Farm Credit of Western Oklahoma ACA (Lender must sign if Borrower or security is in Kansas) /s/ Brian D Sager /s/ Amy K Sager Brian D Sager Amy K Sager EFFECTIVE INTEREST RATE DISCLOSURE 2715333 / Brian D Sager The following disclosures are made pursuant to the requirements of Section 4.13 of the Farm Credit Act of 1971 as amended by the Agricultural Credit Act of 1987 (12 U.S.C. 2199). This loan is NOT subject to the Truth in Lending Act, 15 U.S.C. 1601, et seq., and the effective interest rate shown below should not be interpreted as the equivalent of an annual percentage rate under Truth in Lending standards. <table> <tr> <th>STATED INTEREST RATE</th> <th>EFFECTIVE INTEREST RATE</th> </tr> <tr> <td>The rate of interest currently applicable to your loan.</td> <td>The stated rate of interest adjusted to take into account the purchase of stock and loan origination charges.</td> </tr> <tr> <td>6.30%</td> <td>6.32198%</td> </tr> </table> Loan Origination Charges: <table> <tr> <th></th> <th>Rate Lock/Commitment Fee</th> <th></th> </tr> <tr> <td>Application Fee</td> <td></td> <td></td> </tr> <tr> <td>Origination Fee</td> <td>Discount Fee</td> <td></td> </tr> <tr> <td>Conversion Fee</td> <td>Other (Specify)</td> <td></td> </tr> <tr> <td>Appraisal Fee</td> <td>$2,000.00</td> <td>Stock Purchased</td> <td>$1,000.00</td> </tr> </table> STOCK: Any stock required to be purchased as a condition to obtaining the loan is an at risk investment and such stock may only be retired at the discretion of Lender’s board. This is a FIXED INTEREST RATE LOAN. The stated rate of interest on the full amount of the loan is not subject to change during the life of the loan contract. LOAN OPTIONS: The Lender may offer secured and unsecured loans with maturities up to 40 years. Installments can be paid monthly, quarterly, semi-annually, or according to other irregular repayment plans as may be agreed upon by the Borrowers and the Lender. BORROWER RIGHTS If the Borrower is a farmer or rancher and the loan is for any agricultural purpose or other credit needs, including financing for basic processing and marketing directly related to the Borrower’s operations, the loan is subject to certain Borrower’s rights pursuant to the Farm Credit Act of 1971, as outlined below; Review of Interest Rate: A Borrower, on request, may obtain a review of the loan by the loan officer to determine if the proper interest rate has been assigned, receive a written explanation of the basis for the interest rate charged and receive a written explanation of how the Borrower’s credit status may be improved in order to receive a lower rate. Access to Documents: Borrowers are entitled to receive copies of any document signed or furnished by them, as well as any appraisal of the Borrower’s assets made or used by the Lender. Restructuring Application and Notice of Action on Application: The Lender may not commence loan foreclosure unless at least 45 days before such commencement, Lender has provided Borrower with a copy of its restructuring policy and forms on which Borrower may submit a request for loan restructure. The Lender shall provide prompt written notice of action taken on loan and restructure applications, including notice of a right to review if the loan or restructure application is denied or if the loan application is reduced. A copy of Lender’s Loan Restructuring Policy is available on request. Borrowers Who Meet Loan Obligations: Lender may not foreclose on any loan solely because of Borrower’s failure to post additional collateral, if Borrower has made all accrued payments of principal, interest and penalties. Lender may not require reduction of the principal balance by any amount exceeding a regularly scheduled principal installment, when due, unless the Borrower sells or disposes of part or all of the collateral and the proceeds are not applied to the loan, or the Borrower and Lender agree otherwise in writing. If Borrower pays all accrued payments, including penalties, Lender may not enforce acceleration of the loan based solely on Borrower’s prior untimely payments. Lender may not require a Borrower who has pledged agricultural property to waive any state mediation rights. Right of First Refusal: Agricultural real estate acquired by the Lender cannot be sold or leased by the Lender until it first notifies the previous owner of the right to purchase or lease the property at the appraised fair market value or fair rental value as the case may be. If the Lender first elects to sell by public auction or other competitive bidding process, it must first notify the previous owner of the availability of the property and disclose the minimum amount, if any, required to qualify a bid as acceptable to the Lender. MORTGAGE AND SECURITY AGREEMENT (With Future Advance Clause) Loan No. 2715333 DATE. THIS MORTGAGE is made on this 20th day of July, 2017. PARTIES. The parties to this mortgage are: Amy K. Sager and Brian D. Sager, wife and husband hereafter called MORTGAGOR, whether one or more, and Farm Credit of Western Oklahoma, FLCA, a wholly owned subsidiary of Farm Credit of Western Oklahoma ACA, 2143 Highway 64 North, Guymon, Oklahoma, 73942 (MORTGAGEE). PROPERTY MORTGAGED. MORTGAGOR, in consideration of money loaned under the loan described above, by the MORTGAGEE, does by this instrument mortgage to the MORTGAGEE, as security for all past, present, and future total indebtedness, obligations and liabilities owed by the Mortgagor to the Mortgagee and any renewals thereof or continuance, extension or extensions, whether in whole or in part, together with all attorneys' fees, costs and expenses of action against the Mortgagee to enforce collection incurred by the Mortgagee in the collection of the notes evidencing such indebtedness (collectively, the "Secured Obligations"), all the following real estate situated in the County(ies) of Beaver and State(s) of Oklahoma described as follows: TOWNSHIP 3 NORTH, RANGE 25 EAST OF THE CIMARRON MERIDIAN Section 32: E½ & W½ NE¼ TOWNSHIP 2 NORTH, RANGE 25 EAST OF THE CIMARRON MERIDIAN Section 14: W¼ and SE¼ Section 15: NE¼, S¼, E¼NW¼ & SW¼NW¼ Section 20: E¼ and E¼NW¼ Section 21: E½ and SW¼ Section 22: NW¼, S¼SW¼, NW¼SW¼ & SW¼SE¼ Section 23: All Section 28: NW¼ Section 29: NE¼ 7 PR dated 4-24-18 property to be used as new in 3/2/0954 TOWNSHIP 2 NORTH, RANGE 21 EAST OF THE CIMARRON MERIDIAN Section 24: W¼, LESS and EXCEPT the following described tract of land: Beginning at the Southeast corner of the SW¼ of Section 24-2N-21ECM; Thence N00°03'20"W along the East line of said SW¼ a distance of 1190.00 feet to a point; Thence S89°57'50"W paralleling the South line of said SW¼ a distance of 1401.50 feet to a point; Thence N00°02'03"W paralleling the West line of said SW¼ a distance of 176.07 feet to a point; Thence S89°57'50"W paralleling the South line of said SW¼ a distance of 1234.14 feet to a point on the West line of said SW¼; Thence S00°02'03"E along said West line a distance of 1168.41 feet to a point; Thence N89°57'50"E paralleling the South line of said SW¼ a distance of 175.82 feet to a point; Thence S00°02'03"E paralleling the West line of said SW¼ a distance of 197.66 feet to a point on the South line of said SW¼; Thence N89°57'50"E along said South line a distance of 2460.26 feet to the point of beginning and containing 76.20 acres, more or less. LESS and EXCEPT those tracts conveyed to the State of Oklahoma in deeds recorded in Book 87 on Pages 43, 44, 45, 46, 49 and 171, Book 711 on Pages 183, 185, 187, 189 and 191 and in Book 712 on Pages 265 and 267 of the records of the County Clerk of Beaver County, Oklahoma. INCLUDED in this mortgage is all of Mortgagor's right, title and interest in that certain water well easement across the 76.20 acre tract in the W% of 24-2-21 ECM excluded in the legal description above, which easement is recorded in Book 1261 on Page 458 of the records of the County Clerk of Beaver County, Oklahoma. • FIXTURE FILING: Together with all water rights, all wells and sprinkler systems and other irrigation equipment used for the irrigation of said land, all irrigation permits associated therewith, and security interest in all wells, pumps, equipment and sprinkler systems used for irrigation of the land described above including all future additions to, replacements of or substitutions for any of such items. Containing _3722.00_ acres, more or less (the "Mortgaged Property"). Subject to existing easements, rights of way, and mineral interests or mineral leases owned by third parties under valid reservations or conveyances now of record; but including the following property, whether or not owned by MORTGAGOR on the date of this mortgage or acquired by MORTGAGOR after the date of this mortgage, or whether now or hereafter located on or appurtenant to the real estate described above: All improvements of any kind and character; all equipment and fixtures; all easements, rights of way and reversionary rights; all privileges, hereditaments and appurtenances; all water, irrigation and drainage rights; and all abstracts or other evidence of title; all of which shall be considered a part of the Mortgaged Property. AMOUNT AND TERMS. The MORTGAGOR has made a promissory note payable to the order of MORTGAGEE. The promissory note is dated __July 20, 2017__. The mortgage secures to the MORTGAGEE the payment of $_1,300,000.00_ of the original principal sum and is payable with interest as shown in the promissory note and if not sooner paid, shall be due and payable in full on _November 1, 2047_ subject to extensions thereof. The promissory note states the interest rate on the principal sum, and may also provide for future changes in the interest rate. The principal sum consists of the original principal sum and substitutions and renewals thereof, and may consist of additional principal advances not to exceed $_0.00_ , as evidenced by the MORTGAGOR's notes and bearing interest as provided in said notes. The mortgage secures the repayment of the principal sum with interest, and any additional indebtedness arising under the terms and conditions of this mortgage. PROMISES BY MORTGAGOR. MORTGAGOR promises as follows: 1. TITLE. To be the owner of fee simple title to the Mortgaged Property, and to be the owner of unconditional title to all other property which secures repayment of the Secured Obligations; to have a good right to mortgage said property; that all such property is and shall remain free and clear of all liens and encumbrances other than liens and encumbrances in favor of Mortgagee; and to guarantee and defend title to all Mortgaged Property against the lawful claims or demands of all persons not parties to this agreement, except: (attach schedule, if applicable). 2. USE OF LOAN PROCEEDS. To use the proceeds from the loan secured by this mortgage solely for the purposes stated by MORTGAGOR in MORTGAGOR'S loan application. 3. PAYMENT. To pay when due all payments as set out in the note(s) secured by this mortgage and of the other Secured Obligations. 4. TAXES AND ASSESSMENTS. To pay when due all taxes and assessments lawfully levied or assessed against the Mortgage Property, and also to pay all lawful claims, liens, judgments or encumbrances which may be or become prior to this mortgage. 5. INSURANCE AND ITS PROCEEDS. To insure the buildings and improvements now on, or which may be placed on, the Mortgaged Property, and to keep such buildings and improvements insured against such hazards and in such amounts as the MORTGAGEE may require. The policy of insurance shall contain a loss-payable clause in favor of the MORTGAGEE, as its interest may appear. If there is a loss, and if the payments on the note secured by this mortgage and the other Secured Obligations are current and if there is no violation of the terms of this mortgage by MORTGAGOR, any sums received by the MORTGAGEE for loss under the policy may, in MORTGAGEE'S sole discretion, be used to pay for reconstruction of the destroyed buildings or improvements; if not so applied, or if there is a violation of the terms of this mortgage by MORTGAGOR, then, at the MORTGAGEE'S option, any sums received by the MORTGAGEE may be applied in payment of matured debt, or as extra payments on unmatured debt in the manner provided for in the promissory note secured by this mortgage. 6. COMPLIANCE WITH LAWS; REPAIR, WASTE, REMOVAL. To comply with all laws, ordinances, regulations, covenants, conditions and restrictions which affect the Mortgaged Property; to keep the Mortgaged Property in good condition and repair at all times; not to commit or permit waste of, or nuisance on, the Mortgaged Property, nor to permit unreasonable depreciation of the physical condition or value of the Mortgaged Property through erosion, insufficient water supply, inadequate or improper drainage or irrigation, or any other cause; or, unless written consent of the MORTGAGEE is first obtained, not to cut or remove, or permit the cutting or removal of, growing timber on the Mortgaged Property, except for domestic purposes; nor to remove or permit removal of any improvements on the Mortgaged Property, except for appropriate replacement. 7. REIMBURSEMENT OF COSTS AND EXPENSES TO MORTGAGEE. To promptly reimburse the MORTGAGEE for all costs and expenses which the MORTGAGEE may incur in any suit to foreclose this mortgage, or in any suit in which the MORTGAGEE may be obliged to defend or protect its lien under bankruptcy laws or other laws, or any of the other rights it may have under this mortgage, including all abstract fees, all court costs, a reasonable attorney's fee where allowed by law, and all other expenses. Any expenses so incurred by the MORTGAGEE shall be a Secured Obligation, may be included in any decree of foreclosure, and may be added as advances to the loan balance when paid, as provided in the section labeled "ADVANCES" below. 8. LIFE AND/OR DISABILITY INSURANCE; APPLICATION OF PROCEEDS. To obtain and maintain life and/or disability insurance in such amount as the MORTGAGEE may require in its loan commitment or in any later loan servicing agreement between MORTGAGOR and MORTGAGEE. The insurance policy will provide that all insurance proceeds are to be fully payable to the MORTGAGEE. All such proceeds shall be applied, first, to the payment of any matured indebtedness due the MORTGAGEE, and, secondly, toward payment of the unmatured principal amount due the MORTGAGEE. Any insurance proceeds remaining after full satisfaction of the Secured Obligations shall be forwarded to such person as MORTGAGOR may have designated in the insurance policy, or, if a person is not designated, to MORTGAGOR or to MORTGAGOR'S successors in interest, and the MORTGAGEE shall be held harmless in, and incur no liability for so doing. ENVIRONMENTAL REPRESENTATIONS, WARRANTIES, COVENANTS, AND INDEMNITIES With respect to the Mortgaged Property, Mortgagor has complied, is in compliance, and will at all times comply in all respects with all applicable laws (whether statutory, common law or otherwise), rules, regulations, orders, permits, licenses, ordinances, judgments, or decrees of all governmental authorities (whether federal, state, local or otherwise), including, without limitation, all laws regarding public health or welfare, environmental protection, water and air pollution, composition of product, underground storage tanks, toxic substances, hazardous wastes, hazardous substances, hazardous materials, waste or used oil, asbestos, occupational health and safety, nuisances, trespass, and negligence. 1. RIGHT OF INSPECTION. The Mortgagor hereby grants, and will cause any tenants to grant, to Mortgagee, its agents, attorneys, employees, consultants, contractors, successors and assigns, an irrevocable license and authorization, upon reasonable notice, to enter upon and inspect the Mortgaged Property and facilities thereon, and perform such tests, including without limitation, subsurface testing, soils and groundwater testing, and other tests which may physically invade the Mortgaged Property thereon, as the Mortgagee, in its sole discretion, determines is necessary to protect its security interest, provided however, that under no circumstances shall the Mortgagee be obligated to perform such inspections or tests. 2. INDEMNITY. Mortgagor agrees to indemnify and hold Mortgagee, its directors, employees, agents, and its successors and assigns, harmless from and against, and to give Mortgagee prompt written notice of, any and all claims, losses, damages, liabilities, fines, penalties, charges, judgments, administrative orders, remedial action requirements, enforcement actions of any kind, and all costs and expenses incurred in connection therewith (including, but not limited to, attorney's fees and expenses, including all attorneys fees and expenses incurred by Mortgagee in enforcing this indemnity), arising directly or indirectly, in whole or in part, out of any failure of Mortgagor to comply with the environmental representations, warranties and covenants contained herein, or the failure of same to be true. 3. CONTINUATION OF REPRESENTATIONS, WARRANTIES, COVENANTS AND INDEMNITIES. Mortgagor's representations, warranties, covenants and indemnities contained herein shall survive the occurrence of any event whatsoever, including without limitation, the satisfaction of the promissory note and other Secured Obligations secured hereby, the reconveyance or foreclosure of this mortgage, the acceptance by Mortgagee of a deed in lieu of foreclosure, or any transfer or abandonment of the Mortgaged Property. ASSIGNMENT OF MINERAL INCOME AND DAMAGES. To provide for payment of the Secured Obligations, MORTGAGOR hereby assigns to the MORTGAGEE all sums of money which are now due or hereafter may become due to MORTGAGOR for claims, injury or damage to the security from any cause, and also all sums which are now due or hereafter may become due to MORTGAGOR as rents, royalties, bonuses or delay rentals under any oil, gas or other mineral lease now existing, or hereafter entered into by MORTGAGOR on the Mortgaged Property. To assign payment of these sums to the MORTGAGEE, MORTGAGOR agrees to execute and deliver to the MORTGAGEE any further instruments which the MORTGAGEE may require, at the MORTGAGEE'S option, sums paid to it by virtue of this assignment may be released by the MORTGAGEE to MORTGAGOR, and release of any such sums shall not prevent the MORTGAGEE from receiving payment of any other sums under this assignment. If not released by the MORTGAGEE to MORTGAGOR, such sums may be applied to pay any matured debt or other Secured Obligations owing to the MORTGAGEE, or, if no matured debt exists, such sums may be applied as advance payment of principal, according to the provisions of the promissory note described above and the other Secured Obligations. Release of this mortgage of record shall automatically terminate the MORTGAGEE'S right to receive any further sums under this assignment. WATER RIGHTS. The MORTGAGOR shall abide by all the statutes, rules, and regulations of any and all state and local authorities having jurisdiction over the use and distribution of water or water resources, and further covenants and agrees not to transfer, sell or assign or relinquish the water rights now held or hereafter acquired covering the Mortgaged Property without the written consent of the MORTGAGEE. ADVANCES. In the event MORTGAGOR does not pay when due any costs incurred for abstracting, surveys, title curative work and recording fees which are to be paid by MORTGAGOR as provided for in the application or commitment for this loan, or in the event MORTGAGOR does not pay when due any taxes, or lawful liens, judgments, assessments or other charges which MORTGAGOR promises by the terms of this mortgage to pay, or in the event MORTGAGOR does not maintain insurance as provided for in this mortgage, the MORTGAGEE may make such payments or provide such insurance, and each payment which the MORTGAGEE makes on any of these items shall become a Secured Obligation and be added onto MORTGAGOR'S loan; however, any sum so paid by the MORTGAGEE shall immediately be payable by MORTGAGOR and shall bear interest from the date the MORTGAGEE advances such sums until the date MORTGAGOR pays them, as provided for in the promissory note described above. The MORTGAGEE shall be the sole judge of the legality, necessity or propriety of making any such payment or providing any such insurance, and shall be held harmless in, and incur no liability for so doing. SECURITY AGREEMENT. In the absence of a separate security agreement entered into by MORTGAGOR and MORTGAGEE, this mortgage shall constitute and shall be a security agreement pursuant to the Uniform Commercial Code with respect to any goods, fixtures, equipment, appliances or articles of personal property specified above or described in a separate schedule attached hereto (hereinafter collectively referred to in this paragraph as "personal property") which are a part of the Mortgaged Property and which, under applicable law, are or may be subject to a security interest pursuant to the Uniform Commercial Code, and MORTGAGOR hereby grants MORTGAGEE a security interest in said personal property. MORTGAGOR authorizes Mortgagee to file Uniform Commercial Code financing statements covering said personal property in such form as MORTGAGEE may require to perfect its security interest therein. Upon MORTGAGOR'S breach of any covenant or agreement contained in this mortgage, including but not limited to MORTGAGOR'S covenants to pay when due all Secured Obligations, MORTGAGEE shall have all the remedies of a secured party under the Uniform Commercial Code and, at MORTGAGEE'S option, may also invoke the remedies provided in this mortgage with respect to the personal property secured hereby. BREACH OF PROMISES IN THIS AGREEMENT; ACCELERATION OF DEBT. In the event MORTGAGOR does not comply with any of the promises contained in this mortgage, or does not do any of the acts which MORTGAGOR agrees to do under the terms of this mortgage, or in the event MORTGAGOR declares bankruptcy, makes an assignment for the benefit of his creditors, or if a petition for or appointment of a receiver or trustee to take charge of the MORTGAGOR'S property occurs, or if any proceedings are commenced which might result in loss or reduction of the uses and enjoyment of the security for the Secured Obligations, or if at any time the MORTGAGEE shall deem itself insecure, then the MORTGAGEE may declare a default and the Secured Obligations shall immediately become fully due and payable and bear interest as provided for in the promissory note(s) described above and this mortgage shall become immediately subject to foreclosure. The MORTGAGEE may, however, at its sole option and without notice, waive such acceleration, but no waiver shall prevent the MORTGAGEE from again accelerating the debt based on a later breach of the promises contained in this mortgage. CHANGE OF OWNERSHIP. In the event of a change of ownership of the Mortgaged Property, the MORTGAGEE may declare a default and the Secured Obligations shall become immediately due and payable and bear interest as provided for in the promissory note described above and this mortgage shall become immediately subject to foreclosure unless the MORTGAGEE has given its written consent before such change, or unless the change was the direct result of the death of MORTGAGOR. "Change of Ownership" means a voluntary or involuntary transfer of title to the Mortgaged Property, or any part of it or interest in it, and includes any change in the entity structure, control, operation or ownership which would make MORTGAGOR ineligible to borrow from the MORTGAGEE. Regardless of whether a change of ownership appears as a matter of public record, the MORTGAGEE will have 60 days from the date of receiving a written notice of change of ownership to accelerate the Secured Obligations and if the MORTGAGEE does not so within this 60 days its right to accelerate the Secured Obligations shall expire. RIGHT TO ENTER UNOCCUPIED PREMISES IN TIME OF EMERGENCY AND MAKE REPAIRS; ADVANCES FOR REPAIR. If this mortgage is subject to foreclosure, and if the Mortgaged Property reasonably appears unoccupied to the MORTGAGEE, and if the MORTGAGEE determines that an emergency exists, the MORTGAGEE may go on the Mortgaged Property for the sole purpose of repairing, preserving or protecting same without becoming a mortgagee-in-possession. Any sums spent for these purposes shall become a Secured Obligation, and shall become immediately due and payable in the same way as other advances are dealt with, above. The MORTGAGEE shall be held harmless in, and incur no liability for doing the things provided for in this paragraph, and shall be the sole judge of the necessity or propriety of so doing. CONDEMNATION OR CONVEYANCE IN LIEU OF CONDEMNATION. The proceeds of any award, compensation or claim for damages, direct or consequential, in connection with any condemnation or other taking of the Mortgaged Property, or any part of it, or for a conveyance in lieu of condemnation, are hereby assigned and shall be paid to the MORTGAGEE. Any money so received may, at the option of the MORTGAGEE, be applied, in part or in total, on the Secured Obligations, whether due or not, and any money not so applied will be returned to MORTGAGOR. FORECLOSURE: ENTITLEMENT TO ABSTRACTS, RECEIVERSHIP, RENTS AND PROFITS. In the event this mortgage is foreclosed, the MORTGAGEE shall be entitled to all abstracts and other evidences of title, to have a receiver appointed by the Court to take possession of the Mortgaged Property to collect rents and profits, and all amounts so collected shall be applied, under the direction of the Court, to the expenses of the receivership, and to payment of any judgment rendered or Secured Obligation. MORTGAGEE'S RIGHTS IN LOAN SERVICING. The MORTGAGEE shall have the right, at any time and without notice, to release all or any part of the Mortgaged Property, to grant extensions, deferrals, renewals or reamortizations of all or any part of the Secured Obligations, and to release from personal liability any party now or hereafter personally liable for repayment of the Secured Obligations, all without affecting the provisions or priority of this mortgage or the Mortgaged Property which remains or the personal liability of any party not specifically released from personal liability. WAIVER OF ELECTION, STAY AND HOMESTEAD, OF REDEMPTION RIGHTS WHERE ALLOWED BY LAW, AND OF THE BENEFIT OF ALL APPRAISEMENT LAWS. MORTGAGOR, by signing this mortgage, waives notice of election to declare the Secured Obligations due, and also waives the benefit of all stay, and homestead laws. Where permitted by law, MORTGAGOR also waives all rights of redemption as to any corporation or partnership which may succeed to MORTGAGOR'S interest in the Mortgaged Property, and, if MORTGAGOR is a corporation or partnership, waives its own rights of redemption. MORTGAGOR also waives, where permitted by law, the benefit of all appraisement laws at the option of the MORTGAGEE, which option is to be exercised no later than at the time of judgment in foreclosure. MORTGAGEE'S REPRESENTATIONS AND WARRANTIES. The Mortgagor, if it is not a natural person, hereby represents and warrants that it (a) is duly organized, validly existing and in good standing under the laws of its jurisdiction of organization and (b) has full power to enter into, execute, deliver and perform its obligations under this Mortgage, and all such actions have been duly authorized by all necessary proceedings on its part. This Mortgage constitutes a legal, valid and binding obligation of the Mortgagor, enforceable against the Mortgagor in accordance with its terms except to the extent that such enforceability may be limited by applicable bankruptcy, insolvency, or similar laws or equitable principles affecting creditors' rights generally. THE PROMISES AND AGREEMENTS CONTAINED IN THIS MORTGAGE SHALL BE BINDING ON THE HEIRS, EXECUTORS, ADMINISTRATORS, SUCCESSORS AND ASSIGNS OF ALL PARTIES TO THIS MORTGAGE. Amy K Sager Amy K Sager Brian D Sager Brian D Sager ACKNOWLEDGEMENT STATE OF Oklahoma ) COUNTY OF Beaver ) SS. This instrument was acknowledged before me this 20th day of July, 2017, by Amy K. Sager and Brian D. Sager, wife and husband. Sally D Hessman Notary Public My Commission (appointment) expires: 08-25-2018 NOTE AND LOAN AGREEMENT (Subsequently called the "Note" or "Loan Agreement") Association No. 628-02 For value received, the undersigned ("Borrower" whether one or more) jointly and severally, promise to pay TO THE ORDER OF Farm Credit of Western Oklahoma, FLCA, a wholly owned subsidiary of Farm Credit of Western Oklahoma ACA. ("Lender"), at Lender's offices, the principal sum of $463,000.00 with a beginning interest rate of 6.35% per annum starting April 24, 2018 on the unmailed principal. ☐ If checked, this Note amends and restates a note dated _______. This Note is executed and accepted as an amendment and restatement of, and not in payment or satisfaction of, the following promissory note(s) executed by Borrower and payable to Lender: Date: Face Amount: Maturity Date: REPAYMENT WILL BE AS FOLLOWS: Due and payable in forty (40) semiannual installments on the 1st day of each successive November and May, as follows: The first installment shall consist of principal in the amount of $5,900.79 plus accrued interest, in the amount billed and shall be due and payable on November 01, 2018. The next thirty eight (38) installments shall consist of principal and accrued interest in the amount of $20,601.04, and any remaining balance of principal and interest will mature, become fully due and payable, and shall be repaid no later than the ending term date of May 1, 2038 PROVIDED, however, (1) if the period from the date of disbursement or conversion of the principal sum to the date of the initial installment is more or less than the regular installment period, the amount may be increased or decreased, so as to reflect interest actually accruing for that period; (2) when any different rate of interest is established, as provided below, the amount of each subsequent installment shall be increased or decreased to reflect the increase or decrease in the interest rate, but the due date of the increased or decreased installment shall remain as provided above; and (3) if any advance payment is made, it shall not operate to reduce the dollar amount of the payments evidenced by this Note, except as Lender may determine at its sole option. FIXED INTEREST RATE The stated beginning interest rate of this loan shall be fixed until maturity of the loan, excluding late payment interest or penalties, default interest or the effect of any reinvestment fee(s). ☐ REINVESTMENT FEE REQUIRED FOR PREPAYMENT. If checked, Borrower agrees to pay a reinvestment fee as defined in the attached Prepayment Addendum. ☑ LATE PAYMENT FEE. If checked, borrower agrees to pay a late payment penalty of 2.00% above billing rate on installments not paid in full within ten (10) days of scheduled payment date and continuing until loan is brought current on all payments of: (1) principal and interest not paid when due; and (2) other payments including insurance, taxes, etc. not paid when due if Lender advances to make the payments. SECURITY. This Note is secured by a mortgage and security agreement or deed of trust and security agreement dated April 24, 2018 and/or security agreement dated N/A and by all Collateral described in any other security agreement, mortgage and security agreement or deed of trust and security agreement executed by any Borrower in favor of Lender, whether now existing or hereafter entered into. STANDARD PROVISIONS BORROWER OBLIGATIONS AND AGREEMENTS: While this Loan Agreement is in effect Borrower will: (1) at Lender's request, furnish information to Lender relating to Borrower's business and financial affairs and permit Lender to examine Borrower's books and records; (2) maintain all loans and indebtedness in a current status, including without limitation all indebtedness to Lender; (3) allow Lender to inspect and appraise Lender's collateral; (4) utilize loan proceeds only for the stated purpose; (5) promptly notify Lender of any potential material adverse change in its business or financial condition or any possible default under this or any other loan agreement with Lender or with any other lender; (6) execute all other documents as Lender may lawfully require in connection with this loan; (7) comply with all terms and conditions of all documents executed in connection with this loan; and (8) at Lender's request, submit an annual verifiable balance sheet and income statement as of Borrower's fiscal year end. ADDITIONAL COLLATERAL. Lender may request additional collateral for this loan from time to time in accordance with applicable Federal law, including, without limitation, requests for a security interest in Lender's "Installment Fund" and "Reserve Fund" programs. Borrower agrees to deliver additional collateral as Lender may, in good faith, request. LIMITATIONS ON DISBURSEMENTS. Lender may limit or withhold disbursements under the following circumstances: (1) if Lender, in its sole judgment, determines that the amount of the outstanding indebtedness plus the requested disbursement exceeds the net realizable value of the collateral given for this loan; (2) if Borrower is in default under this, or any other, agreement with this Lender or with any other lender; (3) if Borrower fails to provide additional collateral on Lender's request; (4) if the requested disbursement, together with the current unpaid principal balance, exceeds the commitment amount, the Note amount, or, if applicable, the stated maximum outstanding balance; or (5) if Lender's funding source is unavailable. STOCK PURCHASE, LIEN AND CONVERSION. Stock purchase and conversion shall be according to the terms, conditions and designations outlined in applicable federal law governing the Farm Credit System, regulations of the Farm Credit Administration and Lender's bylaws. Borrower acknowledges that: (1) the principal sum of this Note includes any sums borrowed to purchase the maximum amount of stock; (2) Lender has a first lien on Borrower's stock; and, (3) stock retirement will be in accordance with applicable law, regulations and Lender's bylaws governing retirement. DEFAULT. In the event of default under this Loan Agreement, Borrower agrees that Lender may retire stock, not to exceed par value or face amount, together with any applicable dividends, earnings, patronage refunds or their equivalent, and apply the proceeds to principal and/or interest according to applicable law, regulations and Lender's bylaws in effect at the time of retirement. INVESTMENT. Federal law requires you to purchase stock in your association when you obtain a loan. Voting stock is purchased by farmers, ranchers and agribusinesses eligible to borrow from your association. Non-voting stock is held by certain farm-related businesses and rural home owners. Holders of non-voting stock do not have general voting rights and are not eligible to serve on the board of directors. In all other respects, voting and non-voting stock carry the same rights and privileges. Stock purchased on or after October 6, 1988, is at risk and is not protected. Stock is not a compensating balance. Association boards of directors are authorized to retire at-risk stock on loan repayment if the board determines those funds are not necessary to meet the capital requirements of the association. Your Farm Credit institution currently meets the minimum capital requirements necessary to retire stock and knows of no reason why it will not meet those requirements in the future. DISCLOSURE CONSENT. Borrower agrees that Lender may disclose Borrower's financial information to any consumer reporting agency and/or other Farm Credit System institutions. The Lender may verify all information Borrower discloses; it may also check credit, financial, employment, and income records of the Borrower, and if either a partnership or joint venture of its partners or members, and of each guarantor; the Lender may also answer inquiries about its credit experience with the Borrower. DEFAULT. Borrower is in default under this Note under the following circumstances: (1) Borrower fails to repay principal or interest as set forth in this Note; (2) Borrower is in default in the observance or performance of any covenant, term, representation, or agreement in connection with the loan represented by this Loan Agreement or in connection with any loan agreement, note or instrument now existing, or hereafter executed by Borrower in favor of Lender or any other lender; (3) if any of Borrower's representations to Lender or any other lender in connection with any loan prove to be materially false; (4) Lender determines, in its sole discretion, that Borrower is unable to repay the indebtedness evidenced by this Note or Lender otherwise deems itself insecure; (5) Borrower fails to use loan proceeds for the stated purpose; (6) if, solely in Lender's judgment, Borrower has experienced a material adverse change in its business or financial condition; (7) death, dissolution, termination of existence, insolvency, business failure, petition for or appointment of a receiver, assignment for the benefit of creditors by, or commencement of any proceeding under any bankruptcy or insolvency law by or against Borrower, or any guarantor, endorser, or surety for Borrower. REMEDIES. In the event of default on this loan, Borrower agrees the Lender may, in Lender's sole discretion, apply from time to time, any funds in Lender's Installment Fund and Reserve Fund to any indebtedness of Borrower, to be applied first to unpaid interest and then to unpaid principal. On default and acceleration, Lender may exercise all legal rights and remedies including, but not limited to, rights and remedies stated in mortgages and security agreements. Exercise of any right or remedy shall not exclude exercise of any other right or remedy. Advances made by Lender shall become a part of the debt evidenced by this Note, and the mortgage and security agreement, deed of trust and security agreement or security agreement which also state additional conditions under which the entire debt may be accelerated and become immediately due and will be subject to interest and default interest. DEFAULT INTEREST AND ACCELERATION. In the event of default the interest rate shall be 2% above the then existing billing rate. On Borrower's default, and at Lender's option, all unpaid principal, including amounts advanced for taxes, insurance, etc., interest and default interest, shall become immediately due and payable without notice or demand by Lender. Lender may continue to charge interest, including default interest, on the accelerated amount. WAIVER. Any delay or omission by Lender in exercising a right or remedy shall not waive that right or remedy or any other right or remedy. Any explicit waiver of default by Lender must be in writing and signed by Lender. No waiver of default by Lender shall operate as a waiver of any other default or of the same default on a future occasion. LEGAL FEES. If this loan is placed in the hands of an attorney for collection or to protect or enforce any of Lender's rights in bankruptcy or otherwise, Lender may collect from Borrower its attorney fees, court costs and other expenses as provided by applicable law. If allowed by law, all of these amounts shall be secured by security for this loan and shall become principal under this loan. These expenses shall be immediately payable and shall bear interest as provided in this Note. Lender shall solely determine the propriety of paying these expenses and Borrower shall have no action against Lender under this paragraph. EVIDENCE. Lender's records shall be prima facie evidence of the balance owing Lender and Borrower shall bear the burden of showing any fault or error. WAIVER OF DEMAND. Borrower, and any endorser, surety or guarantor of this Note, severally waive presentment for payment, demand, notice of nonpayment, protest and notice of protest, and diligence in enforcing payment of this Note. WAIVER OF JURY TRIAL. Borrower, and any endorser, surety or guarantor of this Note, waive all rights to a jury trial. RELEASE AND EXTENSION. Borrower, and any endorser, surety or guarantor of this Note, severally agree that Lender may at any time, without notice, release all or any part of the security for this Note (including all or any part of the premises covered by the referenced mortgage and security agreement or deed of trust and security agreement); grant extensions, deferments, renewals or reamortizations of any part of the debt evidenced by this Note, and release from personal liability any one or more of the parties who are or may become liable for this debt; all without affecting the personal liability of any other party. SAVINGS CLAUSE. If any provisions of this Note are found to be invalid or unenforceable, they shall no longer be considered to be a part of this Note. The remaining provisions shall be valid and enforceable. AGENCY APPOINTMENT. Each Borrower appoints every other Borrower as his or her agent for purposes of the obligations of this loan. Borrower acknowledges that Lender may conduct transactions with any Borrower as if it were conducting transactions with all Borrowers. This authority shall continue until Borrower revokes or terminates it by giving written notice to Lender. MERGER. This Note supersedes all prior oral negotiations, representations, and promises which are merged into this writing. This Note, and any amendments, modifications or extensions to it and loan and security agreements executed by Borrower and Lender, constitute the entire agreement between Borrower and Lender. BORROWER'S REPRESENTATIONS AND WARRANTIES. Each Borrower represents and warrants that it and each other Borrower (a) is duly organized, validly existing and in good standing under the laws of its jurisdiction of organization and (b) has full power to enter into, execute, deliver and perform its obligations under this Loan Agreement, and all such actions have been duly authorized by all necessary proceedings on its part. This Loan Agreement constitutes a legal, valid and binding obligation of each Borrower, enforceable against each such Borrower in accordance with its terms except to the extent that such enforceability may be limited by applicable bankruptcy, insolvency or similar laws or equitable principles affecting creditors' rights generally, and shall be binding upon such Borrower's heirs, legal representatives, successors and assigns, and upon the estate of any deceased Borrower the same as if death of such Borrower had not occurred. The terms and conditions of this Loan Agreement do not contravene the terms and conditions of any other contract(s) of the Borrower, all of Borrower's representations and warranties in connection with this loan are true and accurate, and Borrower is not involved in, and has no expectations of involvement in, any legal action that might impair Borrower's financial condition or ability to continue business. CAPTIONS. Captions used in this Note are inserted only as a matter of convenience and for reference, and in no way define, limit or describe the scope or intent of any term or provision. APPLICABLE LAW. Enforcement of this Note and any mortgage and security agreement, deed of trust and security agreement, any security agreement or any other document related thereto shall be governed by federal laws to the extent applicable, and shall otherwise be governed by the laws of the state in which the Lender’s principal office is located. PARTIES BOUND. Each person signing this Note is a Borrower and the obligations and covenants of all Borrowers under this note are joint and several unless otherwise noted. This Note is binding on all parties and their respective heirs, estates, personal representatives, successors and assigns. SPECIAL CONDITIONS. If checked, in addition to the STANDARD PROVISIONS Borrower agrees to the following special conditions: • Borrower(s) to provide annual Balance Sheets and Tax Returns. INITIAL 6-MONTH PREPAYMENT LOCK-OUT FEE. If Borrower makes any unscheduled prepayment (full or partial) within the initial 6-months of this Note or within 6 months following any conversion, refinancing or other event that results in this Note being repriced, then Borrower shall pay a fee equal to the sum of (a) any amount charged to Lender with respect to such prepayment by any farm credit bank or other provider of financing or funding to Lender, plus (b) any other cost or loss suffered by Lender as a result of the prepayment (collectively, a “Reinvestment Fee”). Borrower acknowledges that the amount of a Reinvestment Fee can be significant and acknowledges that Borrower should request the proposed Reinvestment Fee before making any prepayment that would be subject to this provision. ACKNOWLEDGMENT Borrower acknowledges receiving the following documents prior to closing: 1. Annual Report and Quarterly Report, if newer than the Annual Report. 2. Capitalization By-laws. 3. Effective Interest Rate or Annual Percentage Rate Disclosure. TRUST FUND AGREEMENT Borrower acknowledges receiving a copy of the "Trust Fund Agreement", the terms and conditions of which are incorporated herein by reference as part of this Note as if fully set out herein, and Borrower agrees to abide by all terms and conditions set forth therein. THIS WRITTEN LOAN AGREEMENT IS THE FINAL EXPRESSION OF THE AGREEMENT BETWEEN BORROWER AND LENDER AND MAY NOT BE CONTRADICTED BY EVIDENCE OF ANY PRIOR OR CONTEMPORANEOUS ORAL LOAN AGREEMENT BETWEEN THE BORROWER AND THE LENDER. THE PARTIES AFFIRM THAT NO UNWRITTEN ORAL LOAN AGREEMENT EXISTS BETWEEN THEM. I agree to the terms of the Note and acknowledge receiving a copy. Farm Credit of Western Oklahoma, FLCA, a wholly owned subsidiary of Farm Credit of Western Oklahoma ACA (Lender must sign if Borrower or security is in Kansas) [Signature] Brian D Sager [Signature] Amy K Sager EFFECTIVE INTEREST RATE DISCLOSURE 2720954 / Brian D Sager The following disclosures are made pursuant to the requirements of Section 4.13 of the Farm Credit Act of 1971 as amended by the Agricultural Credit Act of 1987 (12 U.S.C. 2199). This loan is NOT subject to the Truth in Lending Act, 15 U.S.C. 1601, et seq., and the effective interest rate shown below should not be interpreted as the equivalent of an annual percentage rate under Truth in Lending standards. STATED INTEREST RATE The rate of interest currently applicable to your loan. 6.35% EFFECTIVE INTEREST RATE The stated rate of interest adjusted to take into account the purchase of stock and loan origination charges. 6.37715% Loan Origination Charges: Application Fee Origination Fee Conversion Fee Appraisal Fee $1,000.00 Rate Lock/Commitment Fee Discount Fee Other (Specify) Stock Purchased STOCK: Any stock required to be purchased as a condition to obtaining the loan is an at risk investment and such stock may only be retired at the discretion of Lender's board. This is a FIXED INTEREST RATE LOAN. The stated rate of interest on the full amount of the loan is not subject to change during the life of the loan contract. LOAN OPTIONS: The Lender may offer secured and unsecured loans with maturities up to 40 years. Installments can be paid monthly, quarterly, semi-annually, or according to other irregular repayment plans as may be agreed upon by the Borrowers and the Lender. BORROWER RIGHTS If the Borrower is a farmer or rancher and the loan is for any agricultural purpose or other credit needs, including financing for basic processing and marketing directly related to the Borrower's operations, the loan is subject to certain Borrower's rights pursuant to the Farm Credit Act of 1971, as outlined below: Review of Interest Rate: A Borrower, on request, may obtain a review of the loan by the loan officer to determine if the proper interest rate has been assigned, receive a written explanation of the basis for the interest rate charged and receive a written explanation of how the Borrower's credit status may be improved in order to receive a lower rate. Access to Documents: Borrowers are entitled to receive copies of any document signed or furnished by them, as well as any appraisal of the Borrower's assets made or used by the Lender. Restructuring Application and Notice of Action on Application: The Lender may not commence loan foreclosure unless at least 45 days before such commencement, Lender has provided Borrower with a copy of its restructuring policy and forms on which Borrower may submit a request for loan restructure. The Lender shall provide prompt written notice of action taken on loan and restructure applications, including notice of a right to review if the loan or restructure application is denied or if the loan application is reduced. A copy of Lender's Loan Restructuring Policy is available on request. Borrowers Who Meet Loan Obligations: Lender may not foreclose on any loan solely because of Borrower's failure to post additional collateral, if Borrower has made all accrued payments of principal, interest and penalties. Lender may not require reduction of the principal balance by any amount exceeding a regularly scheduled principal installment, when due, unless the Borrower sells or disposes of part or all of the collateral and the proceeds are not applied to the loan, or the Borrower and Lender agree otherwise in writing. If Borrower pays all accrued payments, including penalties, Lender may not enforce acceleration of the loan based solely on Borrower's prior untimely payments. Lender may not require a Borrower who has pledged agricultural property to waive any state mediation rights. Right of First Refusal: Agricultural real estate acquired by the Lender cannot be sold or leased by the Lender until it first notifies the previous owner of the right to purchase or lease the property at the appraised fair market value or fair rental value as the case may be. If the Lender first elects to sell by public auction or other competitive bidding process, it must first notify the previous owner of the availability of the property and disclose the minimum amount, if any, required to qualify a bid as acceptable to the Lender. REAMORTIZATION AGREEMENT Farm Credit WESTERN OKLAHOMA LOAN NO. ASSN NO. 2729954 628-02 BORROWER Brian D Sager THIS AGREEMENT effective this _06/21/2019_, between Brian D. Sager and Amy K. Sager, husband and wife. hereinafter called mortgagor or Grantor, whether one or more, and _Farm Credit of Western Oklahoma, FLCA, a wholly owned subsidiary of Farm Credit of Western Oklahoma ACA_ (Lender). The Lender is the owner and holder of certain loan instruments evidencing and securing the loan identified above, including a Mortgage or Deed of Trust recorded on _April 24, 2018_, in Book _1371_ Page _674_, or Reception No. _I-2018-000688_ of the records of _Beaver_ County, State of _Oklahoma_, covering the following described property: TOWNSHIP 2 NORTH, RANGE 25 EAST OF THE CIMARRON MERIDIAN Section 6: All, Less and Except the following described tract: Commencing at the Southwest corner of said Section 6; Thence South 88°49'57" East along the South line of the South Half of said Section 6 a distance of 1510.06 feet to the Point of Beginning; Thence North 01°10'03" East a distance of 375.57 feet; Thence South 87°02'59" East a distance of 145.29 feet; Thence North 02°49'41" East a distance of 79.39 feet; Thence South 87°37'51" East a distance of 934.68 feet; Thence South 00°57'34" West a distance of 430.81 feet to a point on the South line of said Section 6; Thence North 88°49'57" West along said South line a distance of 1083.57 feet to the point of beginning, and containing 10.73 acres, more or less. Section 28: NW¼ Section 29: NE¼ Except any of the property described herein which may have been released of record subsequent to the recording of the Mortgage or Deed of Trust. The parties desire to reamortize the indebtedness and make it due and payable as follows: <table> <tr> <th>PRINCIPAL BALANCE</th> <th>PAYMENT AMOUNT</th> <th colspan="2">REPAYMENT PLAN<br>Principal and Interest Payment</th> </tr> <tr> <td>$457,099.21</td> <td>$20,601.04</td> <td></td> <td></td> </tr> <tr> <th>PAYMENT TERM</th> <th>AMORTIZATION TERM</th> <th>PAYMENT FREQUENCY</th> <th></th> </tr> <tr> <td>19Y</td> <td>19Y6M</td> <td>SEMIANNUALLY</td> <td></td> </tr> <tr> <th>NEXT PAYMENT DUE</th> <th>MATURITY DATE</th> <th>INTEREST RATE</th> <th>DEFAULT RATE</th> </tr> <tr> <td>11/01/2019</td> <td>05/01/2038</td> <td>6.35</td> <td>8.35</td> </tr> </table> CHANGE DATE. The interest rate may change on ___(mo/day/yr)___ and on that day every ____ year(s) thereafter. PROVIDED, if a different rate of interest is established as provided below, the amount of each subsequent installment shall be increased or decreased, as the case may be, in such a manner as to reflect the increase or decrease in such interest rate, but the due date of any installment so increased or decreased shall remain as provided above. Default interest at the above identified rate per annum (or at any different rate established as provided below) shall accrue on all sums of principal and interest not paid when due, and on all sums advanced by the Lender pursuant to the terms of the Mortgage or Deed of Trust, from the due date or date of advancement to the date of payment. Prepayment may be made as provided in original note. This written credit agreement is the final expression of the agreement between Borrower and Lender and may not be contradicted by evidence of any prior or contemporaneous oral credit agreement between the Borrower and the Lender. The parties affirm that no unwritten oral credit agreement exists between them. Hereafter and from time to time, the Lender shall have the right to establish different rates of interest, either higher or lower than those stated above. Said rates shall thereupon apply to the debt evidenced hereby, and which shall remain in effect until different rates of interest are again established. Such different rates shall be established in accordance with the provisions of the Farm Credit Act of 1971, as amended from time to time, and the then existing Regulations of the Farm Credit Administration and shall include a rate applicable to the unmatured principal sum and a higher default rate applicable to all sums of principal or interest not paid when due; but such rates shall include a rate applicable to the unmatured principal sum and a higher default rate applicable to all sums of principal or interest not paid when due; but such rates shall not be applied retroactively. The interest rates specifically stated above, and any different rates hereafter established, shall not be limited by the laws of any state relating to a legal rate or other rate of interest, but shall be governed solely by applicable Federal laws. Mortgagor (Grantor) hereby assumes and agrees to pay said indebtedness at the times and in the manner herein stated, and further assumes and agrees to perform or cause to be performed all of the covenants, conditions and provisions of said loan instruments, which, as between the parties hereto, are hereby changed and modified to the extent (but only to the extent) necessarily required by this agreement. This agreement shall not operate to change, modify or discharge the rights or liabilities of any third party liable for payment of said indebtedness who has not agreed in advance to extension, deferment, renewal or reamortization of the indebtedness as affected by this agreement, all rights of the parties hereto as against such third party and all rights of such third party against the parties hereto being hereby expressly reserved. [Signature] Brian D Sager [Signature] Amy K Sager ACKNOWLEDGEMENT STATE OF Oklahoma ) COUNTY OF Beaver ) SS. This instrument was acknowledged before me this 25th day of June, 2018, by Brian D. Sager and Amy K. Sager, husband and wife. [Signature] Sally D. Hessman Notary Public My Commission (appointment) expires: 08-25-2022 Farm Credit of Western Oklahoma, FLCA, a wholly owned subsidiary of Farm Credit of Western Oklahoma ACA ATTEST: Lisa McBride Assistant Secretary Matthew J Trentham, Vice President / Branch Manager Form 6330 Rev. 6/2014 ACKNOWLEDGEMENT STATE OF Oklahoma ) COUNTY OF Beaver ) ss. This instrument was acknowledged before me this 25th day of June, 2019, by Matthew J Trentham, Vice President / Branch Manager of Farm Credit of Western Oklahoma, FLCA, a wholly owned subsidiary of Farm Credit of Western Oklahoma ACA a Federally-Chartered corporation. NOTARY PUBLIC, State of Oklahoma Commission # 01008461 Texas County KIM GUERRA My Commission Expires: 06-01-2021 My commission (appointment) expires: 6-1-21 Kim Curry NOTARY PUBLIC BOOK 1371 PAGE 674 MORTGAGE AND SECURITY AGREEMENT (With Future Advance Clause) Loan No. 2720954 DATE. THIS MORTGAGE is made on this 24th day of April, 2018. PARTIES. The parties to this mortgage are: Brian D. Sager and Amy K. Sager, husband and wife hereafter called MORTGAGOR, whether one or more, and Farm Credit of Western Oklahoma, FLCA, a wholly owned subsidiary of Farm Credit of Western Oklahoma ACA, 2143 Highway 64 North, Guymon, Oklahoma, 73942 (MORTGAGEE). PROPERTY MORTGAGED. MORTGAGOR, in consideration of money loaned under the loan described above, by the MORTGAGEE, does by this instrument mortgage to the MORTGAGEE, as security for all past, present, and future total indebtedness, obligations and liabilities owed by the Mortgagor to the Mortgagee and any renewals thereof or continuance, extension or extensions, whether in whole or in part, together with all attorneys' fees, costs and expenses of action against the Mortgagee to enforce collection incurred by the Mortgagee in the collection of the notes evidencing such indebtedness (collectively, the "Secured Obligations"), all the following real estate situated in the County(ies) of Beaver and State(s) of Oklahoma described as follows: TOWNSHIP 2 NORTH, RANGE 25 EAST OF THE CIMARRON MERIDIAN Section 6: All, Less and Except the following described tract: Commencing at the Southwest corner of said Section 6; Thence South 88°49′57″ East along the South line of the South Half of said Section 6 a distance of 1510.06 feet to the Point of Beginning; Thence North 01°10′03″ East a distance of 375.57 feet; Thence South 87°02′59″ East a distance of 145.29 feet; Thence North 02°49′41″ East a distance of 79.39 feet; Thence South 87°37′51″ East a distance of 934.68 feet; Thence South 00°57′34″ West a distance of 430.81 feet to a point on the South line of said Section 6; Thence North 88°49′57″ West along said South line a distance of 1083.57 feet to the point of beginning, and containing 10.73 acres, more or less. Section 28: NW¼ Section 29: NE¼ Containing 940.64 acres, more or less (the "Mortgaged Property"). Subject to existing easements, rights of way, and mineral interests or mineral leases owned by third parties under valid reservations or conveyances now of record; but including the following property, whether or not owned by MORTGAGOR on the date of this mortgage or acquired by MORTGAGOR after the date of this mortgage, or whether now or hereafter located on or appurtenant to the real estate described above: All improvements of any kind and character; all equipment and fixtures; all easements, rights of way and reversionary rights; all privileges, hereditaments and appurtenances; all water, irrigation and drainage rights; and all abstracts or other evidence of title; all of which shall be considered a part of the Mortgaged Property. AMOUNT AND TERMS. The MORTGAGOR has made a promissory note payable to the order of MORTGAGEE. The promissory note is dated April 24, 2018. The mortgage secures to the MORTGAGEE the payment of $463,000.00 of the original principal sum and is payable with interest as shown in the promissory note and if not sooner paid, shall be due and payable in full on May 1, 2038 subject to extensions thereof. The promissory note states the interest rate on the principal sum, and may also provide for future changes in the interest rate. The principal sum consists of the original principal sum and substitutions and renewals thereof, and may consist of additional principal advances not to exceed $0.00, as evidenced by the MORTGAGOR's notes and bearing interest as provided in said notes. The mortgage secures the repayment of the principal sum with interest, and any additional indebtedness arising under the terms and conditions of this mortgage. PROMISES BY MORTGAGOR. MORTGAGOR promises as follows: 1. TITLE. To be the owner of fee simple title to the Mortgaged Property, and to be the owner of unconditional title to all other property which secures repayment of the Secured Obligations; to have a good right to mortgage said property; that all such property is and shall remain free and clear of all liens and encumbrances other than liens and encumbrances in favor of Mortgagee; and to guarantee and defend title to all Mortgaged Property against the lawful claims or demands of all persons not parties to this agreement, except: (attach schedule, if applicable). 2. USE OF LOAN PROCEEDS. To use the proceeds from the loan secured by this mortgage solely for the purposes stated by MORTGAGOR in MORTGAGOR'S loan application. 3. PAYMENT. To pay when due all payments as set out in the note(s) secured by this mortgage and of the other Secured Obligations. 4. TAXES AND ASSESSMENTS. To pay when due all taxes and assessments lawfully levied or assessed against the Mortgage Property, and also to pay all lawful claims, liens, judgments or encumbrances which may be or become prior to this mortgage. 5. INSURANCE AND ITS PROCEEDS. To insure the buildings and improvements now on, or which may be placed on, the Mortgaged Property, and to keep such buildings and improvements insured against such hazards and in such amounts as the MORTGAGEE may require. The policy of insurance shall contain a loss-payable clause in favor of the MORTGAGEE, as its interest may appear. If there is a loss, and if the payments on the note secured by this mortgage and the other Secured Obligations are current and if there is no violation of the terms of this mortgage by MORTGAGOR, any sums received by the MORTGAGEE for loss under the policy may, in MORTGAGEE'S sole discretion, be used to pay for reconstruction of the destroyed buildings or improvements; if not so applied, or if there is a violation of the terms of this mortgage by MORTGAGOR, then, at the MORTGAGEE'S option, any sums received by the MORTGAGEE may be applied in payment of matured debt, or as extra payments on unmatured debt in the manner provided for in the promissory note secured by this mortgage. 6. COMPLIANCE WITH LAWS; REPAIR, WASTE, REMOVAL. To comply with all laws, ordinances, regulations, covenants, conditions and restrictions which affect the Mortgaged Property; to keep the Mortgaged Property in good condition and repair at all times; not to commit or permit waste of, or nuisance on, the Mortgaged Property, nor to permit unreasonable depreciation of the physical condition or value of the Mortgaged Property through erosion, insufficient water supply, inadequate or improper drainage or irrigation, or any other cause; or, unless written consent of the MORTGAGEE is first obtained, not to cut or remove, or permit the cutting or removal of, growing timber on the Mortgaged Property, except for domestic purposes; nor to remove or permit removal of any improvements on the Mortgaged Property, except for appropriate replacement. 7. REIMBURSEMENT OF COSTS AND EXPENSES TO MORTGAGEE. To promptly reimburse the MORTGAGEE for all costs and expenses which the MORTGAGEE may incur in any suit to foreclose this mortgage, or in any suit in which the MORTGAGEE may be obliged to defend or protect its lien under bankruptcy laws or other laws, or any of the other rights it may have under this mortgage, including all abstract fees, all court costs, a reasonable attorney's fee where allowed by law, and all other expenses. Any expenses so incurred by the MORTGAGEE shall be a Secured Obligation, may be included in any decree of foreclosure, and may be added as advances to the loan balance when paid, as provided in the section labeled "ADVANCES" below. 8. LIFE AND/OR DISABILITY INSURANCE; APPLICATION OF PROCEEDS. To obtain and maintain life and/or disability insurance in such amount as the MORTGAGEE may require in its loan commitment or in any later loan servicing agreement between MORTGAGOR and MORTGAGEE. The insurance policy will provide that all insurance proceeds are to be fully payable to the MORTGAGEE. All such proceeds shall be applied, first, to the payment of any matured indebtedness due the MORTGAGEE, and, secondly, toward payment of the unmatured principal amount due the MORTGAGEE. Any insurance proceeds remaining after full satisfaction of the Secured Obligations shall be forwarded to such person as MORTGAGOR may have designated in the insurance policy, or, if a person is not designated, to MORTGAGOR or to MORTGAGOR'S successors in interest, and the MORTGAGEE shall be held harmless in, and incur no liability for so doing. ENVIRONMENTAL REPRESENTATIONS, WARRANTIES, COVENANTS, AND INDEMNITIES With respect to the Mortgaged Property, Mortagor has complied, is in compliance, and will at all times comply in all respects with all applicable laws (whether statutory, common law or otherwise), rules, regulations, orders, permits, licenses, ordinances, judgments, or decrees of all governmental authorities (whether federal, state, local or otherwise), including, without limitation, all laws regarding public health or welfare, environmental protection, water and air pollution, composition of product, underground storage tanks, toxic substances, hazardous wastes, hazardous substances, hazardous materials, waste or used oil, asbestos, occupational health and safety, nuisances, trespass, and negligence. 1. RIGHT OF INSPECTION. The Mortgagor hereby grants, and will cause any tenants to grant, to Mortgagee, its agents, attorneys, employees, consultants, contractors, successors and assigns, an irrevocable license and authorization, upon reasonable notice, to enter upon and inspect the Mortgaged Property and facilities thereon, and perform such tests, including without limitation, subsurface testing, soils and groundwater testing, and other tests which may physically invade the Mortgaged Property thereon, as the Mortgagee, in its sole discretion, determines is necessary to protect its security interest, provided however, that under no circumstances shall the Mortgagee be obligated to perform such inspections or tests. 2. INDEMNITY. Mortgagor agrees to indemnify and hold Mortgagee, its directors, employees, agents, and its successors and assigns, harmless from and against, and to give Mortgagee prompt written notice of, any and all claims, losses, damages, liabilities, fines, penalties, charges, judgments, administrative orders, remedial action requirements, enforcement actions of any kind, and all costs and expenses incurred in connection therewith (including, but not limited to, attorney's fees and expenses, including all attorneys fees and expenses incurred by Mortgagee in enforcing this indemnity), arising directly or indirectly, in whole or in part, out of any failure of Mortgagor to comply with the environmental representations, warranties and covenants contained herein, or the failure of same to be true. 3. CONTINUATION OF REPRESENTATIONS, WARRANTIES, COVENANTS AND INDEMNITIES. Mortgagor's representations, warranties, covenants and indemnities contained herein shall survive the occurrence of any event whatsoever, including without limitation, the satisfaction of the promissory note and other Secured Obligations secured hereby, the reconveyance or foreclosure of this mortgage, the acceptance by Mortgagee of a deed in lieu of foreclosure, or any transfer or abandonment of the Mortgaged Property. ASSIGNMENT OF MINERAL INCOME AND DAMAGES. To provide for payment of the Secured Obligations, MORTGAGOR hereby assigns to the MORTGAGEE all sums of money which are now due or hereafter may become due to MORTGAGOR for claims, injury or damage to the security from any cause, and also all sums which are now due or hereafter may become due to MORTGAGOR as rents, royalties, bonuses or delay rentals under any oil, gas or other mineral lease now existing, or hereafter entered into by MORTGAGOR on the Mortgaged Property. To assign payment of these sums to the MORTGAGEE, MORTGAGOR agrees to execute and deliver to the MORTGAGEE any further instruments which the MORTGAGEE may require, at the MORTGAGEE'S option, sums paid to it by virtue of this assignment may be released by the MORTGAGEE to MORTGAGOR, and release of any such sums shall not prevent the MORTGAGEE from receiving payment of any other sums under this assignment. If not released by the MORTGAGEE to MORTGAGOR, such sums may be applied to pay any matured debt or other Secured Obligations owing to the MORTGAGEE, or, if no matured debt exists, such sums may be applied as advance payment of principal, according to the provisions of the promissory note described above and the other Secured Obligations. Release of this mortgage of record shall automatically terminate the MORTGAGEE'S right to receive any further sums under this assignment. WATER RIGHTS. The MORTGAGOR shall abide by all the statutes, rules, and regulations of any and all state and local authorities having jurisdiction over the use and distribution of water or water resources, and further covenants and agrees not to transfer, sell or assign or relinquish the water rights now held or hereafter acquired covering the Mortgaged Property without the written consent of the MORTGAGEE. ADVANCES. In the event MORTGAGOR does not pay when due any costs incurred for abstracting, surveys, title curative work and recording fees which are to be paid by MORTGAGOR as provided for in the application or commitment for this loan, or in the event MORTGAGOR does not pay when due any taxes, or lawful liens, judgments, assessments or other charges which MORTGAGOR promises by the terms of this mortgage to pay, or in the event MORTGAGOR does not maintain insurance as provided for in this mortgage, the MORTGAGEE may make such payments or provide such insurance, and each payment which the MORTGAGEE makes on any of these items shall become a Secured Obligation and be added onto MORTGAGOR'S loan; however, any sum so paid by the MORTGAGEE shall immediately be payable by MORTGAGOR and shall bear interest from the date the MORTGAGEE advances such sums until the date MORTGAGOR pays them, as provided for in the promissory note described above. The MORTGAGEE shall be the sole judge of the legality, necessity or propriety of making any such payment or providing any such insurance, and shall be held harmless in, and incur no liability for so doing. SECURITY AGREEMENT. In the absence of a separate security agreement entered into by MORTGAGOR and MORTGAGEE, this mortgage shall constitute and shall be a security agreement pursuant to the Uniform Commercial Code with respect to any goods, fixtures, equipment, appliances or articles of personal property specified above or described in a separate schedule attached hereto (hereinafter collectively referred to in this paragraph as "personal property") which are a part of the Mortgaged Property and which, under applicable law, are or may be subject to a security interest pursuant to the Uniform Commercial Code, and MORTGAGOR hereby grants MORTGAGEE a security interest in said personal property. MORTGAGOR authorizes Mortgagee to file Uniform Commercial Code financing statements covering said personal property in such form as MORTGAGEE may require to perfect its security interest therein. Upon MORTGAGOR'S breach of any covenant or agreement contained in this mortgage, including but not limited to MORTGAGOR'S covenants to pay when due all Secured Obligations, MORTGAGEE shall have all the remedies of a secured party under the Uniform Commercial Code and, at MORTGAGEE'S option, may also invoke the remedies provided in this mortgage with respect to the personal property secured hereby. BREACH OF PROMISES IN THIS AGREEMENT; ACCELERATION OF DEBT. In the event MORTGAGOR does not comply with any of the promises contained in this mortgage, or does not do any of the acts which MORTGAGOR agrees to do under the terms of this mortgage, or in the event MORTGAGOR declares bankruptcy, makes an assignment for the benefit of his creditors, or if a petition for or appointment of a receiver or trustee to take charge of the MORTGAGOR'S property occurs, or if any proceedings are commenced which might result in loss or reduction of the uses and enjoyment of the security for the Secured Obligations, or if at any time the MORTGAGEE shall deem itself insecure, then the MORTGAGEE may declare a default and the Secured Obligations shall immediately become fully due and payable and bear interest as provided for in the promissory note(s) described above and this mortgage shall become immediately subject to foreclosure. The MORTGAGEE may, however, at its sole option and without notice, waive such acceleration, but no waiver shall prevent the MORTGAGEE from again accelerating the debt based on a later breach of the promises contained in this mortgage. CHANGE OF OWNERSHIP. In the event of a change of ownership of the Mortgaged Property, the MORTGAGEE may declare a default and the Secured Obligations shall become immediately due and payable and bear interest as provided for in the promissory note described above and this mortgage shall become immediately subject to foreclosure unless the MORTGAGEE has given its written consent before such change, or unless the change was the direct result of the death of MORTGAGOR. "Change of Ownership" means a voluntary or involuntary transfer of title to the Mortgaged Property, or any part of it or interest in it, and includes any change in the entity structure, control, operation or ownership which would make MORTGAGOR ineligible to borrow from the MORTGAGEE. Regardless of whether a change of ownership appears as a matter of public record, the MORTGAGEE will have 60 days from the date of receiving a written notice of change of ownership to accelerate the Secured Obligations and if the MORTGAGEE does not so within this 60 days its right to accelerate the Secured Obligations shall expire. RIGHT TO ENTER UNOCCUPIED PREMISES IN TIME OF EMERGENCY AND MAKE REPAIRS; ADVANCES FOR REPAIR. If this mortgage is subject to foreclosure, and if the Mortgaged Property reasonably appears unoccupied to the MORTGAGEE, and if the MORTGAGEE determines that an emergency exists, the MORTGAGEE may go on the Mortgaged Property for the sole purpose of repairing, preserving or protecting same without becoming a mortgagee-in-possession. Any sums spent for these purposes shall become a Secured Obligation, and shall become immediately due and payable in the same way as other advances are dealt with, above. The MORTGAGEE shall be held harmless in, and incur no liability for doing the things provided for in this paragraph, and shall be the sole judge of the necessity or propriety of so doing. CONDEMNATION OR CONVEYANCE IN LIEU OF CONDEMNATION. The proceeds of any award, compensation or claim for damages, direct or consequential, in connection with any condemnation or other taking of the Mortgaged Property, or any part of it, or for a conveyance in lieu of condemnation, are hereby assigned and shall be paid to the MORTGAGEE. Any money so received may, at the option of the MORTGAGEE, be applied, in part or in total, on the Secured Obligations, whether due or not, and any money not so applied will be returned to MORTGAGOR. FORECLOSURE: ENTITLEMENT TO ABSTRACTS, RECEIVERSHIP, RENTS AND PROFITS. In the event this mortgage is foreclosed, the MORTGAGEE shall be entitled to all abstracts and other evidences of title, to have a receiver appointed by the Court to take possession of the Mortgaged Property to collect rents and profits, and all amounts so collected shall be applied, under the direction of the Court, to the expenses of the receivership, and to payment of any judgment rendered or Secured Obligation. MORTGAGEE'S RIGHTS IN LOAN SERVICING. The MORTGAGEE shall have the right, at any time and without notice, to release all or any part of the Mortgaged Property, to grant extensions, deferrals, renewals or reamortizations of all or any part of the Secured Obligations, and to release from personal liability any party now or hereafter personally liable for repayment of the Secured Obligations, all without affecting the provisions or priority of this mortgage or the Mortgaged Property which remains or the personal liability of any party not specifically released from personal liability. WAIVER OF ELECTION, STAY AND HOMESTEAD, OF REDEMPTION RIGHTS WHERE ALLOWED BY LAW, AND OF THE BENEFIT OF ALL APPRAISEMENT LAWS. MORTGAGOR, by signing this mortgage, waives notice of election to declare the Secured Obligations due, and also waives the benefit of all stay, and homestead laws. Where permitted by law, MORTGAGOR also waives all rights of redemption as to any corporation or partnership which may succeed to MORTGAGOR'S interest in the Mortgaged Property, and, if MORTGAGOR is a corporation or partnership, waives its own rights of redemption. MORTGAGOR also waives, where permitted by law, the benefit of all appraisement laws at the option of the MORTGAGEE, which option is to be exercised no later than at the time of judgment in foreclosure. MORTGAGEE'S REPRESENTATIONS AND WARRANTIES. The Mortgagor, if it is not a natural person, hereby represents and warrants that it (a) is duly organized, validly existing and in good standing under the laws of its jurisdiction of organization and (b) has full power to enter into, execute, deliver and perform its obligations under this Mortgage, and all such actions have been duly authorized by all necessary proceedings on its part. This Mortgage constitutes a legal, valid and binding obligation of the Mortgagor, enforceable against the Mortgagor in accordance with its terms except to the extent that such enforceability may be limited by applicable bankruptcy, insolvency, or similar laws or equitable principles affecting creditors' rights generally. BOOK 1371 PAGE 678 THE PROMISES AND AGREEMENTS CONTAINED IN THIS MORTGAGE SHALL BE BINDING ON THE HEIRS, EXECUTORS, ADMINISTRATORS, SUCCESSORS AND ASSIGNS OF ALL PARTIES TO THIS MORTGAGE. Brian D Sager Amy K Sager ACKNOWLEDGEMENT STATE OF Oklahoma ) COUNTY OF Beaver ) SS. This instrument was acknowledged before me this 24th day of April, 2018, by Brian D. Sager and Amy K. Sager, husband and wife. Sally D Hessman Notary Public My Commission (appointment) expires: 08-25-2018 RETURN TO Farm Bureau of Western Oklahoma 2143 N 7th Guymon, OK 73943