C, DEED OF TRUST <br />Loan No: 426450088168 (Continued) <br />Page 2 <br />Grantor and Lender that this Deed of Trust secures the balance outstanding under the Credit Agreement from time to time from zero up to <br />the Credit Limit as provided in this Deed of Trust and any intermediate balance. <br />Grantor presently assigns to Lender (also known as Beneficiary in this Deed of Trust) all of Grantor's right, title, and interest in and to all present <br />and future leases of the Property and all Rents from the Property. In addition, Grantor grants to Lender a Uniform Commercial Code security <br />interest in the Personal Property and Rents. <br />THIS DEED OF TRUST, INCLUDING THE ASSIGNMENT OF RENTS AND THE SECURITY INTEREST IN THE RENTS AND PERSONAL PROPERTY, <br />IS GIVEN TO SECURE (1) PAYMENT OF THE INDEBTEDNESS AND (2) PERFORMANCE OF EACH OF GRANTOR'S AGREEMENTS AND <br />OBLIGATIONS UNDER THE CREDIT AGREEMENT, THE RELATED DOCUMENTS, AND THIS DEED OF TRUST. THIS DEED OF TRUST IS GIVEN <br />AND ACCEPTED ON THE FOLLOWING TERMS: <br />Payment and Performance. Except as otherwise provided in this Deed of Trust, Grantor shall pay to Lender all amounts secured by this <br />Deed of Trust as they become due, and shall strictly and in a timely manner perform all of Grantor's obligations under the Credit <br />Agreement, this Deed of Trust, and the Related Documents. <br />Possession and Maintenance of the Property. Grantor agrees that Grantor's possession and use of the Property shall be governed by the <br />following provisions: <br />Possession and Use. Until the occurrence of an Event of Default, Grantor may (a) remain in possession and control of the Property; <br />(b) use, operate or manage the Property; and (c) collect the Rents from the Property. The following provisions relate to the use of <br />the Property or to other limitations on the Property. THIS INSTRUMENT WILL NOT ALLOW USE OF THE PROPERTY DESCRIBED IN <br />THIS INSTRUMENT IN VIOLATION OF APPLICABLE LAND USE LAWS AND REGULATIONS. BEFORE SIGNING OR ACCEPTING THIS <br />INSTRUMENT, THE PERSON ACQUIRING FEE TITLE TO THE PROPERTY SHOULD CHECK WITH THE APPROPRIATE CITY OR <br />COUNTY PLANNING DEPARTMENT TO VERIFY APPROVED USES AND TO DETERMINE ANY LIMITS ON LAWSUITS AGAINST <br />FARMING OR FOREST PRACTICES AS DEFINED IN ORS 30.930. <br />Duty to Maintain. Grantor shall maintain the Property in good condition and promptly perform all repairs, replacements, and <br />maintenance necessary to preserve its value. <br />Compliance With Environmental Laws. Grantor represents and warrants to Lender that: (a) During the period of Grantor's ownership <br />of the Property, there has been no use, generation, manufacture, storage, treatment, disposal, release or threatened release of any <br />Hazardous Substance by any person on, under, about or from the Property; (b) Grantor has no knowledge of, or reason to believe <br />that there has been, except as previously disclosed to and acknowledged by Lender in writing, (i) any breach or violation of any <br />Environmental Laws, (ii) any use, generation, manufacture, storage, treatment, disposal, release or threatened release of any <br />Hazardous Substance on, under, about or from the Property by any prior owners or occupants of the Property, or (iii) any actual or <br />threatened litigation or claims of any kind by any person relating to such matters; and (c) Except as previously disclosed to and <br />acknowledged by Lender in writing, (i) neither Grantor nor any tenant, contractor, agent or other authorized user of the Property shall <br />use, generate, manufacture, store, treat, dispose of or release any Hazardous Substance on, under, about or from the Property; and <br />(ii) any such activity shall be conducted in compliance with all applicable federal, state, and local laws, regulations and ordinances, <br />including without limitation all Environmental Laws. Grantor authorizes Lender and its agents to enter upon the Property to make such <br />inspections and tests, at Grantor's expense, as Lender may deem appropriate to determine compliance of the Property with this <br />section of the Deed of Trust. Any inspections or tests made by Lender shall be for Lender's purposes only and shall not be construed <br />to create any responsibility or liability on the part of Lender to Grantor or to any other person. The representations and warranties <br />contained herein are based on Grantor's due diligence in investigating the Property for Hazardous Substances. Grantor hereby (a) <br />releases and waives any future claims against Lender for indemnity or contribution in the event Grantor becomes liable for cleanup or <br />other costs under any such laws; and (bi agrees to indemnify and hold harmless Lender against any and all claims, losses, liabilities, <br />damages, penalties, and expenses which Lender may directly or indirectly sustain or suffer resulting from a breach of this section of <br />the Deed of Trust or as a consequence of any use, generation, manufacture, storage, disposal, release or threatened release occurring <br />prior to Grantor's ownership or interest in the Property, whether or not the same was or should have been known to Grantor. The <br />provisions of this section of the Deed of Trust, including the obligation to indemnify, shall survive the payment of the Indebtedness and <br />the satisfaction and reconveyance of the lien of this Deed of Trust and shall not be affected by Lender's acquisition of any interest in <br />the Property, whether by foreclosure or otherwise. <br />Nuisance, Waste. Grantor shall not cause, conduct or permit any nuisance nor commit, permit, or suffer any stripping of or waste on <br />or to the Property or any portion of the Property. Without limiting the generality of the foregoing, Grantor will not remove, or grant to <br />any other party the right to remove, any timber, minerals (including oil and gas), coal, clay, scoria, soil, gravel or rock products without <br />Lender's prior written consent. <br />Removal of Improvements. Grantor shall not demolish or remove any Improvements from the Real Property without Lender's prior <br />written consent. As a condition to the removal of any Improvements, Lender may require Grantor to make arrangements satisfactory <br />to Lender to replace such Improvements with Improvements of at least equal value. <br />Lender's Right to Enter. Lender and Lender's agents and representatives may enter upon the Real Property at all reasonable times to <br />attend to Lender's interests and to inspect the Real Property for purposes of Grantor's compliance with the terms and conditions of <br />this Deed of Trust. <br />Compliance with Governmental Requirements. Grantor shall promptly comply with all laws, ordinances, and regulations, now or <br />hereafter in effect, of all governmental authorities applicable to the use or occupancy of the Property. Grantor may contest in good <br />faith any such law, ordinance, or regulation and withhold compliance during any proceeding, including appropriate appeals, so long as <br />Grantor has notified Lender in writing prior to doing so and so long as, in Lender's sole opinion, Lender's interests in the Property are <br />not jeopardized. Lender may require Grantor to post adequate security or a surety bond, reasonably satisfactory to Lender, to protect <br />Lender's interest. <br />Duty to Protect. Grantor agrees neither to abandon or leave unattended the Property. Grantor shall do all other acts, in addition to <br />those acts set forth above in this section, which from the character and use of the Property are reasonably necessary to protect and <br />preserve the Property. <br />Due on Sale - Consent By Lender. Lender may, at Lender's option, declare immediately due and payable all sums secured by this Deed of <br />Trust upon the sale or transfer, without Lender's prior written consent, of all or any part of the Real Property, or any interest in the Real <br />Property. A "sale or transfer" means the conveyance of Real Property or any right, title or interest in the Real Property; whether legal, <br />beneficial or equitable; whether voluntary or involuntary; whether by outright sale, deed, installment sale contract, land contract, contract <br />for deed, leasehold interest with a term greater than three (3) years, lease-option contract, or by sale, assignment, or transfer of any <br />beneficial interest in or to any land trust holding title to the Real Property, or by any other method of conveyance of an interest in the Real <br />Property. However, this option shall not be exercised by Lender if such exercise is prohibited by federal law or by Oregon law. <br />Taxes and Liens. The following provisions relating to the taxes and liens on the Property are part of this Deed of Trust: <br />Payment. Grantor shall pay when due (and in all events prior to delinquency) all taxes, special taxes, assessments, charges (including <br />water and sewer), fines and impositions levied against or on account of the Property, and shall pay when due all claims for work done <br />on or for services rendered or material furnished to the Property. Grantor shall maintain the Property free of all liens having priority <br />over or equal to the interest of Lender under this Deed of Trust, except for the lien of taxes and assessments not due, except for the <br />Existing Indebtedness referred to below, and except as otherwise provided in this Deed of Trust. <br />Right to Contest. Grantor may withhold payment of any tax, assessment, or claim in connection with a good faith dispute over the <br />obligation to pay, so long as Lender's interest in the Property is not jeopardized. If a lien arises or is filed as a result of nonpayment, <br />Grantor shall within fifteen (15) days after the lien arises or, if a lien is filed, within fifteen (15) days after Grantor has notice of the <br />filing, secure the discharge of the lien, or if requested by Lender, deposit with Lender cash or a sufficient corporate surety bond or <br />other security satisfactory to Lender in an amount sufficient to discharge the lien plus any costs and permissible fees, or other charges <br />that could accrue as a result of a foreclosure or sale under the lien. In any contest, Grantor shall defend itself and Lender and shall <br />satisfy any adverse judgment before enforcement against the Property. Grantor shall name Lender as an additional obligee under any <br />surety bond furnished in the contest proceedings. <br />Evidence of Payment. Grantor shall upon demand furnish to Lender satisfactory evidence of payment of the taxes or assessments and <br />shall authorize the appropriate governmental official to deliver to Lender at any time a written statement of the taxes and assessments <br />against the Property. <br />