Kalispell Lodging/Landlord's Release and ConsentLANDLORD'S RELEASE AND CONSENT
Principal Loan Date Maturity Loan No Call i Coll Account Officer Initials
01-27-2022 12-05-2024 2540097278 708 153
References in the boxes above are for Lender's use only and do not limit the applicability of this document to any particular loan or item.
Any item above containing —*— has been omitted due to text length limitations.
Borrower: Kalispell Lodging LLC Lender: Stockman Bank of Montana
857 W Washington St Suite 301 Dillon Office
Marquette, MI 49855 590 North Montana
Dillon, MT 59725
(406) 683-1600
THIS LANDLORD'S RELEASE AND CONSENT is entered into among Kalispell Lodging LLC ("Borrower"), whose address is 857 W Washington St
Suite 301, Marquette, MI 49855; Stockman Bank of Montana ("Lender"), whose address is Dillon Office, 590 North Montana, Dillon, MT 59725;
and City of Kalispell and its assigns Kalispell Airport Association (collectively "Landlord"), whose address is P.O. Box 1997, Kalispell, MT
59903. Borrower and Lender have entered into, or are about to enter into, an agreement whereby Lender has acquired or will acquire a security interest or
other interest in the Collateral. Some or all of the Collateral may be affixed or otherwise become located on the Premises. To induce Lender to extend
the Loan to Borrower against such security interest in the Collateral and for other valuable consideration, Landlord hereby agrees with Lender and Borrower
as follows.
COLLATERAL DESCRIPTION. The word "Collateral" means certain of Borrower's personal property in which Lender has acquired or will acquire a
security interest, including without limitation the following specific property:
All Inventory, Chattel Paper, Accounts, Equipment (including all titled vehicles) and General Intangibles.
BORROWER'S ASSIGNMENT OF LEASE. Borrower hereby assigns to Lender all of Borrower's rights in the Lease, as partial security for the Loan. The
parties intend that this assignment will be a present transfer to Lender of all of Borrower's rights under the Lease, subject to Borrower's rights to use the
Premises and enjoy the benefits of the Lease while not in default on the Loan or Lease. Upon full performance by Borrower under the Loan, this
assignment shall be ended, without the necessity of any further action by any of the parties. This assignment includes all renewals of and amendments to
the Lease or the Loan, until the Loan is paid in full. No amendments may be made to the Lease without Lender's prior written consent, which shall not be
unreasonably withheld or delayed.
CONSENT OF LANDLORD. Landlord consents to the above assignment. If Borrower defaults under the Loan or the Lease, Lender may reassign the
Lease, and Landlord agrees that Landlord's consent to any such reassignment will not be unreasonably withheld or delayed. So long as Lender has not
entered the Premises for the purpose of operating a business, Lender will have no liability under the Lease, including without limitation liability for rent.
Whether or not Lender enters into possession of the Premises for any purpose, Borrower will remain fully liable for all obligations of Borrower as lessee
under the Lease. While Lender is in possession of the Premises, Lender will cause all payments due under the Lease and attributable to that period of
time to be made to Landlord. If Lender later reassigns the Lease or vacates the Premises, Lender will have no further obligation to Landlord.
LEASE DEFAULTS. Both Borrower and Landlord agree and represent to Lender that, to the best of their knowledge, there is no breach or offset existing
under the Lease or under any other agreement between Borrower and Landlord. Landlord agrees not to terminate the Lease, despite any default by
Borrower, without giving Lender written notice of the default and an opportunity to cure the default within a period of sixty (60) days from the receipt of the
notice. If the default is one that cannot reasonably be cured by Lender (such as insolvency, bankruptcy, or other judicial proceedings against Borrower),
then Landlord will not terminate the Lease so long as Landlord receives all sums due under the Lease for the period during which Lender is in possession of
the Premises, or so long as Lender reassigns the Lease to a new lessee reasonably satisfactory to Landlord.
DISCLAIMER OF INTEREST. Landlord hereby consents to Lender's security interest (or other interest) in the Collateral and disclaims all interests, liens
and claims which Landlord now has or may hereafter acquire in the Collateral. Landlord agrees that any lien or claim it may now have or may hereafter
have in the Collateral will be subject at all times to Lender's security interest (or other present or future interest) in the Collateral and will be subject to the
rights granted by Landlord to Lender in this Agreement.
ENTRY ONTO PREMISES. Landlord and Borrower grant to Lender the right to enter upon the Premises for the purpose of removing the Collateral from
the Premises or conducting sales of the Collateral on the Premises. The rights granted to Lender in this Agreement will continue until a reasonable time
after Lender receives notice in writing from Landlord that Borrower no longer is in lawful possession of the Premises. If Lender enters onto the Premises
and removes the Collateral, Lender agrees with Landlord not to remove any Collateral in such a way that the Premises are damaged, without either
repairing any such damage or reimbursing Landlord for the cost of repair.
COUNTERPARTS. This document may be executed in any number of counterparts, including via facsimile or electronic mail delivery of scanned copies,
each of which when so executed and delivered shall be deemed an original, and such counterparts together shall constitute one instrument. The signatures
of all of the parties need not appear on the same counterpart.
MISCELLANEOUS PROVISIONS. The following miscellaneous provisions are a part of this Agreement: This Agreement shall extend to and bind the
respective heirs, personal representatives, successors and assigns of the parties to this Agreement. The covenants of Borrower and Landlord respecting
subordination of the claim or claims of Landlord in favor of Lender shall extend to, include, and be enforceable by any transferee or endorsee to whom
Lender may transfer any claim or claims to which this Agreement shall apply. Lender need not accept this Agreement in writing or otherwise to make it
effective. This Agreement shall be governed by and construed in accordance with the laws of the State of Montana. If Landlord is other than an
individual, any agent or other person executing this Agreement on behalf of Landlord represents and warrants to Lender that he or she has full power and
authority to execute this Agreement on Landlord's behalf. Lender shall not be deemed to have waived any rights under this Agreement unless such waiver
is in writing and signed by Lender. Without notice to Landlord and without affecting the validity of this Consent, Lender may do or not do anything it deems
appropriate or necessary with respect to the Loan, any obligors on the Loan, or any Collateral for the Loan; including without limitation extending, renewing,
rearranging, or accelerating any of the Loan indebtedness.
AMENDMENTS. This Agreement, together with any Related Documents, constitutes the entire understanding and agreement of the parties as to the
matters set forth in this Agreement. No alteration of or amendment to this Agreement shall be effective unless given in writing and signed by the party or
parties sought to be charged or bound by the alteration or amendment.
NO WAIVER BY LENDER. Lender shall not be deemed to have waived any rights under this Agreement unless such waiver is given in writing and signed
by Lender. No delay or omission on the part of Lender in exercising any right shall operate as a waiver of such right or any other right. A waiver by
Lender of a provision of this Agreement shall not prejudice or constitute a waiver of Lender's right otherwise to demand strict compliance with that provision
or any other provision of this Agreement. No prior waiver by Lender, nor any course of dealing between Lender and Landlord, shall constitute a waiver of
any of Lender's rights or of any of Landlord's obligations as to any future transactions. Whenever the consent of Lender is required under this Agreement,
the granting of such consent by Lender in any instance shall not constitute continuing consent to subsequent instances where such consent is required and
in all cases such consent may be granted or withheld in the sole discretion of Lender.
SEVERABILITY. If a court of competent jurisdiction finds any provision of this Agreement to be illegal, invalid, or unenforceable as to any circumstance,
that finding shall not make the offending provision illegal, invalid, or unenforceable as to any other circumstance. If feasible, the offending provision shall
be considered modified so that it becomes legal, valid and enforceable. If the offending provision cannot be so modified, it shall be considered deleted
from this Agreement. Unless otherwise required by law, the illegality, invalidity, or unenforceability of any provision of this Agreement shall not affect the
legality, validity or enforceability of any other provision of this Agreement.
DEFINITIONS. The following capitalized words and terms shall have the following meanings when used in this Agreement. Unless specifically stated to
the contrary, all references to dollar amounts shall mean amounts in lawful money of the United States of America. Words and terms used in the singular
shall include the plural, and the plural shall include the singular, as the context may require. Words and terms not otherwise defined in this Agreement
shall have the meanings attributed to such terms in the Uniform Commercial Code:
Agreement. The word "Agreement" means this Landlord's Release and Consent, as this Landlord's Release and Consent may be amended or
modified from time to time, together with all exhibits and schedules attached to this Landlord's Release and Consent from time to time.
Borrower. The word "Borrower' means Kalispell Lodging LLC and includes all co-signers and co -makers signing the Note and all their successors
and assigns.
Collateral. The word "Collateral" means all of Borrower's right, title and interest in and to all the Collateral as described in the Collateral Description
section of this Agreement.
Landlord. The word "Landlord" means City of Kalispell and its assigns Kalispell Airport Association and is used for convenience purposes only.
Landlord's interest in the Premises may be that of a fee owner, lessor, sublessor or lienholder, or that of any other holder of an interest in the Premises
which may be, or may become, prior to the interest of Lender.
Lease. The word "Lease" means that certain lease of the Premises, dated August 29, 2022, between Landlord and Borrower. The Lease was
recorded as follows: Recorded September 7, 2022, as Instrument No. 20220023691, Flathead County, Montana.
Lender. The word "Lender' means Stockman Bank of Montana, its successors and assigns.
Loan. The word "Loan" means any and all loans and financial accommodations from Lender to Borrower whether now or hereafter existing, and
however evidenced.
Note. The word "Note" means:
Note #2540097278 dated January 27, 2022 and executed by Kalispell Lodging LLC in the original principal amount of $13,599,050.60, together with all
renewals of, extensions of, modifications of, refinancings of, consolidations of, and substitutions for the note or credit agreement.
Premises. The word "Premises" means the real property legally described as:
LEASE PARCEL A
A PORTION OF LOT 2A, AMENDED PLAT OF LOT 2, BLOCK 1, AIRPORT ADDITION TO KALISPELL LOCATED IN THE NORTHWEST
ONE -QUARTER (NW 1/4) OF SECTION 20, TOWNSHIP 28 NORTH, RANGE 21 WEST, PRINCIPAL MERIDIAN MONTANA, CITY OF
KALISPELL, FLATHEAD COUNTY, MONTANA MORE PARTICULARLY DESCRIBED AS FOLLOWS:
COMMENCING AT THE SOUTHEAST CORNER OF LOT 1A, AMENDED PLAT OF LOT 2, BLOCK 1, AIRPORT ADDITION TO KALISPELL,
SAID POINT BEING ON THE WESTERLY RIGHT OF WAY OF US HIGHWAY 93; THENCE ALONG THE WESTERLY RIGHT OF WAY OF
SAID US HIGHWAY 93 N29°34'45 W A DISTANCE OF 565.05 FEET TO A POINT ON THE EASTERLY BOUNDARY OF LOT 2A, AMENDED
PLAT OF LOT 2, BLOCK 1, AIRPORT ADDITION TO KALISPELL, SAID POINT ALSO BEING THE TRUE POINT OF BEGINNING FOR LEASE
PARCEL A; THENCE LEAVING SAID RIGHT OF WAY S60°15'26' W A DISTANCE OF 44.05 FEET TO A POINT ON THE EASTERLY
BOUNDARY OF LOT 1A, AMENDED PLAT OF LOT 2, BLOCK 1, AIRPORT ADDITION TO KALISPELL; THENCE ALONG THE EASTERLY
BOUNDARY OF SAID LOT 1A N29°40'12' W A DISTANCE OF 10.36 FEET TO A POINT ON THE NORTHERN BOUNDARY OF SAID LOT 1A;
THENCE ALONG THE NORTHERLY BOUNDARY OF SAID LOT 1A S60°20'55• W A DISTANCE 107.05 FEET TO POINT ON THE EASTERLY
BOUNDARY OF PARCEL 1 OF CERTIFICATE OF SURVEY 12729; THENCE ALONG THE EASTERLY BOUNDARY OF SAID PARCEL 1
N29°18'08• W A DISTANCE OF 74.50 FEET TO A POINT ON THE SOUTHERLY BOUNDARY OF LOT 1A, RESUBDIVISION OF LOT 1,
BLOCK 1, AIRPORT ADDITION TO KALISPELL, SUBDIVISION NO. 73; THENCE ALONG THE SOUTHERLY BOUNDARY OF SAID LOT 1A
N60° 14'09' E A DISTANCE OF 150.75 TO A POINT ON THE SOUTHEAST CORNER OF SAID LOT 1A AND WESTERLY RIGHT OF WAY OF
US HIGHWAY 93; THENCE ALONG THE WESTERLY RIGHT OF WAY OF US HIGHWAY 93 S29°34'45• E A DISTANCE OF 85.09 FEET TO
THE TRUE POINT OF BEGINNING.
AREA CONTAINING 0.27 ACRES, MORE OR LESS.
LEASE PARCEL B
A PORTION OF PARCEL 1, CERTIFICATE OF SURVEY 12729 LOCATED IN THE NORTHWEST ONE -QUARTER (NW 1/4) OF SECTION 20,
TOWNSHIP 28 NORTH, RANGE 21 WEST, PRINCIPAL MERIDIAN MONTANA, CITY OF KALISPELL, FLATHEAD COUNTY, MONTANA
MORE PARTICULARLY DESCRIBED AS FOLLOWS:
COMMENCING AT THE SOUTHEAST CORNER OF LOT 1A, AMENDED PLAT OF LOT 2, BLOCK 1, AIRPORT ADDITION TO KALISPELL,
SAID POINT BEING ON THE WESTERLY RIGHT OF WAY OF US HIGHWAY 93; THENCE ALONG THE WESTERLY RIGHT OF WAY OF US
HIGHWAY 93 N29°34'45' W A DISTANCE OF 650.14 TO A POINT ON THE NORTHEAST CORNER OF LOT 2A, AMENDED PLAT OF LOT 2,
BLOCK 1, AIRPORT ADDITION TO KALISPELL; THENCE LEAVING THE WESTERLY RIGHT OF WAY OF SAID S60°14'09' W A DISTANCE
OF 150.75 FEET TO A POINT ON THE EASTERLY BOUNDARY OF SAID PARCEL 1 OF CERTIFICATE OF SURVEY 12729, SAID POINT
ALSO BEING THE TRUE POINT OF BEGINNING FOR LEASE PARCEL B; THENCE ALONG THE EASTERLY BOUNDARY OF SAID PARCEL
1 S29°18'08' E A DISTANCE 74.50 FEET TO A POINT ON THE NORTHERLY BOUNDARY OF LOT 1A, AMENDED PLAT OF LOT 2, BLOCK
1, AIRPORT ADDITION KALISPELL; THENCE ALONG THE NORTHERLY BOUNDARY OF SAID LOT 1A S60°20'55• W A DISTANCE OF
37.10 FEET TO A POINT; THENCE ALONG THE WESTERLY BOUNDARY OF LOT 1A S29°37'33' E A DISTANCE OF 75.56 TO A POINT;
THENCE S60° 18'19' W A DISTANCE OF 113.32 FEET TO THE NORTHWEST CORNER OF SAID LOT 1A AND THE EASTERLY BOUNDARY
OF A DEED EXHIBIT RECORDED IN BOOK 507, PAGE 117; THENCE S60°18'52' W A DISTANCE OF 73.33 FEET TO A POINT; THENCE
N29°44'47 W A DISTANCE OF 149.75 FEET TO A POINT ON THE SOUTHERLY BOUNDARY OF LOT 1A, RESUBDIVISION OF LOT 1,
BLOCK 1, AIRPORT ADDITION TO KALISPELL, SUBDIVISION NO. 73; THENCE ALONG THE SOUTHERLY BOUNDARY OF SAID LOT1A
N60° 14'09 E A DISTANCE OF 224.48 FEET TO THE TRUE POINT OF BEGINNING.
AREA CONTAINING 0.71 ACRES, MORE OR LESS.
LEASE PARCEL C
A PORTION OF DEED EXHIBIT RECORDED IN BOOK 507, PAGE 117 LOCATED IN THE NORTHWEST ONE -QUARTER (NW 114) OF
SECTION 20, TOWNSHIP 28 NORTH, RANGE 21 WEST, PRINCIPAL MERIDIAN MONTANA, CITY OF KALISPELL, FLATHEAD COUNTY,
MONTANA MORE PARTICULARLY DESCRIBED AS FOLLOWS:
COMMENCING AT THE SOUTHEAST CORNER OF LOT 1A, AMENDED PLAT OF LOT 2, BLOCK 1, AIRPORT ADDITION TO KALISPELL,
SAID POINT BEING ON THE WESTERLY RIGHT OF WAY OF US HIGHWAY 93; THENCE ALONG THE SOUTHERLY BOUNDARY SAID LOT
1A S60°24'07• W A DISTANCE OF 300.01 FEET TO POINT ON THE SOUTHWEST CORNER OF SAID LOT 1A AND THE EASTERLY
BOUNDARY OF DEED EXHIBIT RECORDED IN BOOK 507, PAGE 117; THENCE ALONG THE WESTERLY BOUNDARY OF SAID LOT 1A
N29°44'47' W A DISTANCE OF 221.10 FEET TO A POINT ON THE SOUTHEAST CORNER OF TRACT 1 OF CERTIFICATE OF SURVEY
13656, SAID POINT ALSO BEING THE TRUE POINT OF BEGINNING FOR LEASE PARCEL C; THENCE ALONG THE SOUTHERLY
BOUNDARY OF SAID TRACT 1 S60°15'13• W A DISTANCE OF 13.33 FEET TO A POINT; THENCE N29°44'47• W A DISTANCE OF 205.63
FEET TO A POINT; THENCE S60°18'50- W A DISTANCE OF 60.00 FEET TO POINT; THENCE N29°44'47' W A DISTANCE OF 72.71 FEET
TO POINT ON THE SOUTHERLY BOUNDARY OF PARCEL 1 OF CERTIFICATE OF SURVEY 12729; THENCE ALONG THE SOUTHERLY
BOUNDARY OF SAID PARCEL 1, N60° 18'52' E A DISTANCE OF 73.33 FEET TO THE NORTHWEST CORNER OF LOT 1A, AMENDED PLAT
OF LOT 2, BLOCK 1, AIRPORT ADDITION TO KALISPELL; THENCE ALONG THE WESTERLY BOUNDARY OF SAID LOT 1A S29°44'47• E A
DISTANCE OF 278.32 FEET TO THE TRUE POINT OF BEGINNING.
AREA CONTAINING 0.18 ACRES, MORE OR LESS.
LEASE PARCEL D
A PORTION OF DEED EXHIBIT RECORDED IN BOOK 507, PAGE 117 LOCATED IN THE NORTHWEST ONE -QUARTER (NW 1/4) OF
SECTION 20, TOWNSHIP 28 NORTH, RANGE 21 WEST, PRINCIPAL MERIDIAN MONTANA, CITY OF KALISPELL, FLATHEAD COUNTY,
MONTANA MORE PARTICULARLY DESCRIBED AS FOLLOWS:
COMMENCING AT THE SOUTHEAST CORNER OF LOT 1A, AMENDED PLAT OF LOT 2, BLOCK 1, AIRPORT ADDITION TO KALISPELL,
SAID POINT BEING ON THE WESTERLY RIGHT OF WAY OF US HIGHWAY 93; THENCE ALONG THE SOUTHERLY BOUNDARY SAID LOT
1A S60°24'07° W A DISTANCE OF 300.01 FEET TO A POINT ON THE SOUTHWEST CORNER OF SAID LOT 1A AND THE EASTERLY
BOUNDARY OF A DEED EXHIBIT RECORDED IN BOOK 507, PAGE 117, SAID POINT ALSO BEING THE TRUE POINT OF BEGINNING FOR
LEASE PARCEL D; THENCE LEAVING SAID WESTERLY BOUNDARY OF SAID LOT 1A AND THROUGH SAID DEED EXHIBIT RECORDED
IN BOOK 507, PAGE 117 S60°24'07• W A DISTANCE OF 13.33 FEET; THENCE N29°44'47• W A DISTANCE OF 144.56 FEET; THENCE
N60°15'13' E A DISTANCE OF 13.33 FEET TO A POINT ON THE WESTERLY BOUNDARY OF SAID LOT 1A; THENCE ALONG THE
WESTERLY BOUNDARY OF SAID LOT 1A S29°44'47• E A DISTANCE OF 144.59 FEET TO THE TRUE POINT OF BEGINNING.
AREA CONTAINING 0.04 ACRES, MORE OR LESS.
Related Documents. The words "Related Documents" mean all promissory notes, credit agreements, loan agreements, environmental agreements,
guaranties, security agreements, mortgages, deeds of trust, security deeds, collateral mortgages, and all other instruments, agreements and
documents, whether now or hereafter existing, executed in connection with the Loan.
BORROWER AND LANDLORD ACKNOWLEDGE HAVING READ ALL THE PROVISIONS OF THIS LANDLORD'S RELEASE AND CONSENT, AND
BORROWER AND LANDLORD AGREE TO ITS TERMS. THIS AGREEMENT IS DATED SEPTEMBER 30, 2022.
BORROWER:
KALISPELL LODGING LLC
By:
Robert Mahaney, Manager of Kalispell Lodging LLC
LANDLORD:
CITY OF
By:
Auth&tfied r for City of Kalispell
KALISPELL AIRPORT 9ASS� N
By:
Auttiorized Signer for Kalispell Airport Association
LENDER:
STOCKMAN BANK OF MONTANA
By:
Robert Shane Puyear, VP Dillon Branch Manager
19972022 All RI9MS Rew,ry -MT C:LLP%CFIILPL*45FC TR-104899 PR-2(M)