2026-003195

Klamath County, Oregon
04/10/2026 03:56:02 PM
Fee: $237.00

470326096697/ 1060309
AFTER RECORDING RETURN TO:

Veristone Mortgage, LLC [ NMLS ID: 1106440
6725 116th Ave NE, Suite 210

Kirkland, WA 98033

Rhett Bordner | NMLS ID: 597534

Loan: 2026.025%

TRUST DEED, ASSIGNMENT OF RENTS,
SECURITY AGREEMENT AND FIXTURE FILING

THIS TRUST DEED, ASSIGNMENT OF RENTS, SECURITY AGREEMENT AND
FIXTURE FILING (this “Trust Deed™), dated as of lst day of April, 2026, is entered into by
and among Kevin Loop (“Grantor), whose address is 3300 Narvaez Ave. SPC 159 San Jose
CA 95136; Matthew M. Chakoian, Attorney at Law — Qregon State Bar #01227 (“Trustee”),
whose address is 3710 168th St NE B201, Arlington, WA 98223; for the benefit of Veristone
Mortgage, LLC, a Washington limited liability company (“Beneficiary”), whose address is
6725 116th Ave NE, Suite 210 Kirkland, Kirkland 98033.

WHEREAS, Beneficiary has loaned to Grantor the sum of THREE HUNDRED AND
SEVENTY TWO THOUSAND THREE HUNDRED AND THIRTY DOLLARS AND
EIGHTY CENTS (U.S.$372,330.80) which is repayable, with interest, in accordance the
terms of that certain Promissory Note dated | day of April, 2026 {the Promissory Note, as it
may be modified, extended, or replaced from time to time, is referred to herein as the "Nowe").
If not sooner paid, the Note is due and payable in full on the Maturity Date set forth in the
Note.

NOW, THEREFORE, for good and valuable comsideration, receipt of which is
acknowledged, and for the purpose of securing the Obligations deseribed in Section 1.1 below,
Grantor irrevocably grants, bargains, sells, conveys, warranis, assigns, transfers, pledges,
hypothecases and grants a security interest in, and confirms to Trustee in trust for the benefit
and security of the Beneficiary, subject to and upon the terms and conditions contained in this
Trust Deed, all of Grantor's right, title and interest in and to the real property located in
Klamath County, state of Oregon, and more particularly described in Exhibit A attached to this
Trust Deed {the “Property™).

TOGETHER WITH all interests, estates and rights that Grantor now has or may acquire
at any time in the future in (a) the Property, (b} any and all options, agreements and contracts
for the purchase or sale of all or any part of the Property or any interest in the Property; (c) all
gasements, rights-of-way and rights used in connection with or as a means of access {o the
Property, and {d) all tenements, hereditaments and appurtenances in any manner belonging,
relating or appertaining to the Property;

TOGETHER WITH all interests, estates and rights of Grantor, now owaed or acquired at
any time in the future, in and to any land lying within any streets, sidewalks, alleys, strips and

gores adjacent to or used in connection with the Propesty,

TOGETHER WITH all rights, titles and interests of Grantor, now owned or acquized at
any time in the future, in and to any and all buildings and other improvemenis of every nature
pow or at any Iime in the future located on the Property and all fixtures of every kind and
nature (incleding, all machinery, equipment and goods constituting fixtures) located on the
Property or attached to, contained in or used & any such buildings and other improvements,
and all appurtenances and zdditions to and substitutions znd replacements of such buildings and
improvements {collectively, the “Improvements™);

TOGETHER WITH all present and future rights to the use of any trade name by which
all or any portion of the Property and the Improvements are known; any books and records
relating to the use and operatien of all er any porticn of the Property and Improvements; all
right, title and interest of Grantor in, to and under all present and fufure plans, specifications
and contracts relating to the design, construction, management or inspection of any
Improvements; and all rights, titles and interests of Grantor in and © ell present and future
licenses, permits, approvals and agreements with or from any municipal corporation, county,
state or other governmental or quasigovernmental entity or agency relating to the development,
improvement, division or use of all or any portion of the Property to. the extent such trade
names, licenses, permits, approvals and agreements are assignable by law; and all other general
intapgibles relating to the Property, the Improvements or their use or operation;

TOGETHER WITH all rights of Grantor in and to any escrow of withhold agreements,
title insurance, surety bonds, warraniles, management confracts, leasing or sales agreements,
and service contracts which are in any way relevant to the ownership, development,
improvemenl. management, sale or use of all or any pertion of the Property or any of the
Improvements;

TOGETHER WITH Grantor's rights under any payment, performance, or other bond in
conmection with construction of any Improvernents, and all constroction materials, supplies, and
equipmert delivered to the Property or intended to be used in connection with the construction
of improvemenits on (he Property;

TOGETHER WITH all leasehold estates and the right, title and interest of Grantor in and
to all leases and subleasss covering all or any portion of the Property or Improvements, whether
now existing or arising at any time in the future, and al} rents and deposits paid to Grantor in
connection with such leasehold estates, leases and subleases, as more specifically provided for
in Article II herein;

TOGETHER WITH all rights, interests and claims that Grantor now has or may acquire
at any time in the future with respect to any damage to or taking of all or any part of the
Property or the Improvements, including any and all proceeds of inserance in effect with
respect to the Improvements, any and all awards made for taking by eminent domain, or by any
proceeding or purchase in lieu of such a taking, of the whole or any part of the Property or the
Improvements, and any and all awards resulting from any cther damage to the Property or the
Improvements, all of which are assigned to the Trustee for the benefit of the Beneficiary, and,
subject to the terms of this Trust Deed, the Trustee is authorized to collect and receive the

proceeds of and 1o give proper receipts and acquittances for, and to apply those proceeds to the
Obligations except as otherwise provided in this Trust Deed;

TOGETHER WITH any and ali minerzl, oil and gas rights, air rights, development rights,
water rights and water stock, drainage rights, zoning rights and other similar rights or interests
which benefit or are appurtenant to the Property or the Improvements to the extent the same
are assignable;

TOGETHER WITH all products of and proceeds from any of the tangible and intangible
property described above.

All of the property described ahove is sometimes referred 1o as the “Trust Property.”

TO HAVE AND TQ HOLD the Trust Property to the Trustee and its successors and
assigns for the benefit of the Beneficiary and its successors and agsigns, forever.,

PROVIDED ALWAYS, that if all the Obligations are paid, performed and satisfied in
full, then the lien and estate granted by this Trust Deed will be reconveyed.

This Trust Deed, the Note, and all other agreements and instraments executed al any time
in connection with this Trust Deed, whether prier to, contemporaneously with, or after the date
hereof, are sometimes collectvely referred to herein as the “Loan Documents.”

GRANTOR COVENANTS AND AGREES AS FOLLOWS:

ARTICLEI
PARTICULAR COVENANTS AND WARRANTIES OF GRANTOR
1.1. Obligations Secured. This Trust Deed secures the following, collectively referred to as
the “Obligations™
1.1.1. The payment of all indebtedness and the performance of all covenants and
obligations of Grantor vnder the Loan Documents, whether such paymesnts and
performance are now due or become due in the future;
1.1.2. The payment and performance of all covenants and obligations in all other security
agreements, notes, agreements and undertakings now existing or executed in the future
by Grantor with or for the benefit of Beneficiary; and
1.1.3. The payment and performance of any and all other indebledness and obligations of
Grantor 1o Beneficiary of any nature whatsoever, whether direct or indirect, primary or
secondary, whenever and however arising and whether or not presently contemplated,
angd whether or not reflected in 2 written agreement or instrument.

1.2. Payment of Indebtedness, Performance of Covenants. Grantor will duly and punctually
pay and perform all of the Obligations.

1.3. Property. Grantor warmants thart it holds good and merchantable title to the Property and
the Improvements, free and clear of all liens, encumbrances, reservations, restrictions, and
easements except those specifically listed in Exhibit B attached ro this Trust Deed. Grantor

covenants that it will forever defend Bensficiary’s and Trustee’s rights under this Trust Deed
and the priority of this Trust Deed subject only to those exceptions to titie listed in Exhibit
B.

1.4, Further Assurances; filing; Re-Filing; Etc.

1.4.1, Grantor will execute, acknowledge and deliver, from time to time, such further
instruments 25 Beneficiary or Trustee may reasomably reguire te accomplish the
purposes of this Trust Deed.

1.4.2. Grantor, immediately upon the execution and delivery of this Trust Deed, and
subsequently from time 1o lime, will cooperate to the fullest extent reasonably possible
to cause this Trust Deed, any security agreement, mortgage or deed of trust supplemental
to this Trust Deed and each instrument of further assurance o be recorded and re-
recorded in such manner and in such places 2s may be required by any present or future
law in order 1o perfect, and continue perfection of, the lien and estate of this Trust Deed.
1.43. Grentor will pay =ll filing and recording fees, and all expenses incident to the
execution, filing, recerding and acknowledgment of this Trust Deed, any security
agreement, mortgage or deed of trust supplemental to this Trust Deed and any instrument
of further assurance, and zll federal, state, county and municipal taxes, assessments and
charges arising out of or in connection with the execution, delivery, filing and recording
of this Trust Deed, any security agreement, mortgage or deed of trust supplemental to
this Trust Deed or any instruments of further assurance.

1.5. Compliance with Leows. Grantor farther represents, warrants and covenants that Grantor
and its operations upon the Property will at &ll times comply in all material respects with all
applicable laws, statutes, ordinances, regulations and codes of all federal, state and local
governments (collectively “Laws™), and all covenants, conditions, easements and restrictions
affecting the Property (collectively, “Covenanis™):

1.6. Definirions; Environmental Covenants; Warranties and Compliance.
1.6.1. For purposes of this section, Environmental Law means any federal, stale or local
law, statute, ordinance, or regulation pertaining to health, industrial hygieme, or
environmental conditions on, under or about the Property, including the Comprehensive
Environmental Response, Compensation, and Liability Act of 198C, as amended, 42
USC § 9601 et seq., and the Resource Conservation and Recovery Act of 1976, 42 USC
§ 6901 et seq.
1.6.2. For the purposes of this section, “Hazardous Substance” includes:
1.6.2.1. All “hazardous substances” as designated pursuant to 40 CFR Part 302;
1.6.2.2. All “hazardous wastes” within the meaning provided in 40 CFR 261.3;
1.6.2.3. AH “exiremely hazardous substances™ as listed in 40 CFR Part 355;
1.6.2.4, Al “hazardous chemicals” as defined under 29 CFR § 1910.1200(c);
1.6.2.5. Al “toxic chemicals” listed in 40 CFR Part 372;
1.6.2.6. Those substances defined as ‘hazardous” or ‘foxic” in the Hazardous Muterials
Transportation Act, 49 USC § 1807 et seg. or listed in 49 CFR Par1 172;
1.6.2.7. All marerials, wastes. and subsiances which are designated as a “hazardous
substance” pursuant 1o Section 311 of the Clean Water Act, 33 USC § 1251 et seq. (33
USC § 1321) or listed pursuant to Section 3076 of the Clean Warer Acr (33 USC §

1317}

1.6.2.8. Al ‘hazardous substances” as defined in Chapter 453 and 466 of Oregon

Revised Statutes;

1.6.2.9, All materials, substances, and wastes which are or which comtain (A) asbestos,

(B) polychiorinared biphenyls, (C) explosives, except such explosives as are used during

construction in accordance with law; (D} petroleum, and any fracrions of petroleun; or

(E} radioactive materials; and

1.6.2.10. Such other substances, materials, and wastes which are or become regulated

or classified as hazardous or toxic under federal, state, or local laws or regulutions.
All of the preceding statutory or regulatory citations shall be deemed to include
amendments and similar statutes, rules, regulations and orders promulgated from time to
tme.
1.6.3. Grantor will not use, generate, manufacture, produce, store, release, discharge, or
dispose of on, under or about the Property or its ground water, or transport to or from
the Property any Hazardous Substance and will not permit any other persen to do so,
except for such Hazardous Substances as may be used in the ordinary course of its
business, so long as such substances are siored and used in accordance with all applicable
Environmental Laws, including those relating to Keensure, notice and record keeping.
1.6.4. Grantor will keep and maintain the Property in compliance with, and will not
cause or permit the Property, including groundwater, lo be in violation of, any
Envirenmental Law.
1.6.5, Grantor will give prompt written noiice o Beneficiary of any one or maore of the
following:

1.6.5.1. any proceeding or inquiry by any governmental authority with respect to any

alleged violation of any Environmental Law or the presence of any Hazardous

Substance on the Property or the migration of any Hazardous Substances from the

Property to any other premiises;

1.6.5.2. all known claims made or threatened by any person against Grantor or the

Property relating to any loss or injury resulting from any Hazardous Substance or the

violation of any Envirenmental Law;

1.6.5.3. the existence of any Hazardous Substance on or about all or any porticn of

the Property, except such Hazardous Substances as may be used in the ordipary

course of Grantor's business so long as such Hazardous Substances are stored and

used in accordance with all applicable Environmental Laws; and

1.6.5.4. Grantor's discovery of any occurrence or condition on any real property

adicining or in the vicinity of the Property that could in Grantor’s judgment cause

any restrictions on the pwnership, occupancy, wansferability or use of the Property

under any Environmental Law.
1.6.6. Grantor will promptly provide to Beneficiary copies of all reports, documents and
notices relating to the Property or Improvements provided to or received from any
agency administering any Environmental Laws. Beneficiary will have the right to join
and participate, in its own namie if it 5o elects, in any legal proceeding or action initiated
with respect to the Property or Improvements in conmection with any Environmental
Law and have its altomey fees in connection with such participation paid by Grantor, if
Beneficiary determines in its sole discretion that such participation is necessary to

protect its interest in the Trust Property.
1.6.7. If, at any time, Beneficiary has reason to believe that any release, discharge or
disposal of any Hazardous Substance affecting the Property or Improvements has
accurred or is threatened, or if Beneficiary has reason to believe thac a viclation of an
Gnvironmental Law has ogcwred or may occur with respect te the Property or
Improvements, Beneficiary may require Grantor to obtain or may itsell obtain, ar
Grantor's expense, an environmental assessment of such condition or threatened
condition by a qualifisd environmental consultant. Grantor, or Beneficiary, if applicable,
shall promptly provide to the other a complete copy of any environmental assessment
obtained by such party.
1.6.8. In the event that any investigation, site monitoring, containment, cleanup, removal,
restoration or other remedial work of any kind or nature (“Remedial Work”) is required
under any applicable local, state or federal law or regulation, any judicial order, or by
any governmental agency or person because of, or in connection with, the current or
future presence, suspected presence, release or suspected releass of a Hazardous
Substance in or into the air, soil, ground water, surface water or soil vaper, on, about, or
under all oF any portion of the Property or the contamination (whether presenty existing
or occurring after the date of this Trust Deed) of the buildings, facilities, soil, ground
water, surface water, air or other elements on or under any other property as a result of
Hazardous Substances emanating from the Property, Grantor will, within 30 days after
written demand by Beneficiary for performance by Beneficiary (or such shorter period
of time as may be required under any applicable law, regulation, order or agreement),
commence and then diligently prosecute to completion, all such Remedial Work. All
costs and expenses of such Remedial Work will be paid by Grantor including
Beneficiary’s reasonable attomey fees and costs incurred in conpection with menitoring
or review of the legal aspects of such Remedial Work. In the event Grantor fails fo
timely commence, cause to be commenced or diligeatly prosecute such Remedial Work,
Beneficiary mav, but will not be required to, cause such Remedial Work to be
performed, and all costs and expenses of, or incurred in connection with such Remed:al
Work, will become part of the indebtedness secured by this Trust Deed and will bear
interest until paid at the rate provided in the Note.
1.6.9. Grantor will protect, indemnify and bold harmless Beneficiary, its directors,
officers, employees, agents, successors and assigns from and against any and all loss,
damage, cost, expense or liability {including reasonable atiorney fees and costs) directly
or indirectly arising out of or atributable to Grantor's use, gemeration, manufactuie,
preduction, storage, release, threatened release, discharge or disposal, of a Hazardovs
Substance on, under or about the Property, including the costs of any required repair,
cleanup, containment or detoxification of the Property and the preparation and
implementation of any closure, remedial or other required plans.
1.6.10. Granter represenis and warrants to Beneficiary that:

1,6.10.1. Grantor is not in violation of or subject to any existing, pending or

threatened investigation by any governmental authority under any Environmental

Law.

1.6.10.2. Granter has not and is not required by any Environmental Law to obtain

any permit or license beyond what it has obtained to use the Improvements.

1.6.11. All representations, warranties, and covenants in this Secton 1.6 will, to the
maximum extent permissible under applicable law, survive the satisfaction of the
Obligations, the reconveyance of the Trust Property, and/or the foreclosure of this Trust
Deed by any means,

1.7. Mainienance and Improvements. Grantor will not permit all or any part of the
Improvements 1o be removed, demolished or materially altered without Beneficiary's prior
written consent: provided, however, that Grantor may remove, demolish, or materially alter
such Improvements as become obsolete in the usual conduct of Grantor's business, if the
remeoval or material alteration does not materially detract from the operation of the
Grantor's business and if Improvements which are demolished or removed are promptly
replaced with Improvements of like value and quality. Grantor will maintain the Property
and Improvements in good repair, working order and condition, except for reasonable wear
and use, and will at Beneficiary’s election restore, replace or rebuild all or any part of the
Improvements now cr ai any tme in the future damaged or destroyed by any casvalty
(whether or not insured against or insurable) or affected by any Condemnation (as defined
in Section 2.013. Grantor will not commit, permit or suffer any waste or deterioration of the
Trust Property. Grantor will give Bensficiary no less than 10 days prior notice before
commencing zny construction, alteration or improvement on the Property exceeding
$20.000 ip cost.

1.8. Liens. Grantor will not create, suffer or permit to be created any mortgage, deed of trust,
lien, security intersst, charge or encumbrance upon the Trust Property prior or seniof to, on
a parity with, or subordinate to the lien of this Trust Deed, except as specifically provided in
Exhibit B attached to this Trust Deed.

1.9, Impositions.

1.9.1. Grantor will pay or cause to be paid, when due and before any fine, penalty,
interest or cost attaches, all taxes, assessments, wiility charges and all other governmental
or nongovernmental charges or levies now or at any time in the future assessed or levied
against any part of the Trust Property (including levies or charges resulting from
Covenants affecting the Trust Property) or upon the lien or estate of the Beneficiary or
Trustee in the Trust Property {collectively, the “Impositions™); provided, however, that if
by law any such Imposition may be paid in installments (whether or not interest will
accrue on the unpaid balance), Grantor may pay such Imposition in installments
(together with accrued interest, if any, on the unpaid balance) as they become due,
before any fine, penalty or cost attaches. Grantor will also pay when due all claims for
labor, materials or suppliss that, if unpaid, might become a lien on all or any portion of
the Trast Property.

1.9.2. Grantor may, at its expense and after prior notice o Beneficiary, ecntest by
appropriate legal, administrative or other proceedings conducted in good faith and with
due diligence, the amount, validity or application, in whele or in part, of any Imposition
or lien for any Imposition or any claim or lien of any laborer, materialman, supplier or
vendor, and may withhold payment of such claim, lien or Imposition pending completion
of such proceedings i permitted by law, provided that: (i) such proceedings will suspend

collection from the Trust Property; (ii) neither the Trust Property, in whole or in part,
nor any interest in the Trust Property will be sold, forfeited or lost if Grantor pays the
amount or satishes the condition being contested, and Gramtor would have the
opportunity to do so it the event of Grantor's failure to prevail in the contest (iii} neither
Beneficiary nor Trustee will, by virtue of such permitted contest, be exposed to any Tisk
of any Liability for which Grantor hias not furnished additional security as provided in
clause (iv) below; and (iv) Grantor will have furnished to Beneficiary additional security
in respect of the claim being contested or the loss or damage which may result from
Grantor’s failure to prevail in such contest in such form and amount as may be
reasonably requested by Beneficiary.

1.9.3, Grantor shall furnish to Beneficiary promptly upon request reasonably satisfactory
evidence of the payment of all Impositions. Beneficiary is hereby authorized 1o request
and receive from the responsible governmental and non-governmental personnel written
statements with respect o the accrual and payment of all Impositions.

1.10. Books and Records; Inspection of the Property. Grantor will keep complete and
accurate records and books of account in accordance with generally accepted accounting
principles consistently applied (it being understood that interim financial statements may be
subject to year-end adjustments and not include footnotes) and will permit Trustee,
Beneficiary and their autherized representatives to enter and inspect the Property and the
Improvemnents, to examine and make copies or extracts of the records and books of accoont
of the Grantor with respect to the Property and the Improvements, all at such reasonable
times and upon reasonable notice as may be requested by Beneficiary or Trustee; provided
that such inspections shall be conducted so as not 1o uareasonably interfers with Granfor's
use and occupancy of the Trust Property and that any information obtained therefrom shall
be held in confidence by Beneficiary and Trustee.

1.11. Limitations of Use. Grantor will not initiate, join in, or consent o any rezening of the
Property or any change in any private restrctive covenant, or other public or Drivate
restrictions limiting or defining the uses that may be made of all or any part of the Property
and the Improvements without the prior written consent of Beneficiary.

112, insurance.

1.12.1. Property and Cther frsurance. Grantor will obtain and maintain in full force and
effect during the term of this Trust Deed (i) all risk property insurance logether with
endorsements for replaceraent cost coverage, inflation adjustment, and vandalism and
malicious mischief coverage, all in ameunts not less than the full replacement cost of all
Improvements; (i} comprehensive general liability insurance with limiis, coverages,
risks insured and waiver of subrogation clauses reasonably acceptable to Beneficiary,
and in no event less than 32,000,000 combined single limit coverage; and (iii) unless
Beneficiary otherwise agrees in writing, rent 1oss or business interruption insurance in an
amount no less than the total annual rents provided for in all leases for all or any portion
of the Trust Property. In addition, Grantor will oblain and maintain all such other
insurance coverages which at the dme are commonly carried for similar property, in
such amounts as Beneficiary may require.

1.12.2. Insurance Companies and Policies. A1l insurance will be writien by a company or

companies reasonably acceptable to Beneficiary, will contain a mortgagee clause In
favor of Beneficiary with loss proceeds under any policy payable to Beneficiary, subject

to the terms of this Trust Deed; will require 30 days' prior written tofice to Beneficiary
of camcellation or reduction in coverage; will contain endorsements that no act or
negligence of Grantor or any occupant, and N6 OCCUPANCY Of LSe of the Property for
purposes more hazardous than permitied by the terms of the policy will affect the
validity or enforceability of such insurance as against Beneficiary; will be in full force

and effect on the date of this Trust Deed; and will be accompanied by proof of
premivms paid for the current policy year. Beneficiary will be named as an additional
insured on all liability policies. Grantor will forward to Beneficiary, upon request, 2
certificate evidencing the coverages required under this Trust Deed and copies of all
policies.

1.12.3. Blankez Policy. If a blanket policy is issued, a certified copy of that policy will be
furnished together with a certificate indicating that Beneficiary is an insured under that
pelicy in the proper designated amount.

1.12.4. Insurance Proceeds. All proceeds from anv insurance on the Property will be used
in accordance with the provisions of Section 1.14,

1.13. Assignments of Policies Upon Foreclosure. In the event of foreclesurs of the lien of this
Trust Deed or other transfer of title or assignment of the Trust Property in whele or in part,
all right, title and interest of Grantor in and to all policies of insurance procured under
Section 1.12 will inure to the benefit of and pass to the successors in interest of Grantor or
the purchaser or grantee of all or any part of the Trust Property. Grantor shall fully
cooperate in executing such documents and taking other such further action as may be
required 1o effect such assignment.

1.14. Casualty/Loss Restoration.

1.14.1. After the ocourrence of any casualty to the Property, whether or not required to
be insured against as provided in this Trust Deed, Grantor will give prompt written
notice of such casualty to Beneficiaty, specifically describing its nature and canse and
the extent of the damage or destruction to the Property and Improvements, Beneficiary
may make proof of loss if it is not made proraptly by Grantor.

1.14.2, Grantor assigns to Beneficiary all insurance proceeds which Granter may be
entitled to receive with respect to any casualty. Beneficiary may, at its option, apply all
or any portion of the insurance proceeds to the reduction of the Obligations in such order
as Beneficiary may determine, whether or not such obligations are then due, or apply all
or any portion of the insurance proceeds to the cost of restoring and rebuilding the
portion of the Property and Improvements that were damaged or destroyed.

1.15. Actions to Protect Trust Property. If Grantor fails to obtain the insurance required by
Section 1.12, to make the payments required by Section 1.9 (other than payments which the
Grantor is contesting in accordance with Section 1.9.2) or to perform or observe any of its
other covenants or agreements under this Trust Deed, Beneficiary may, without cbligation to
do so, obtain such insurance or make such payments, or take other action which it deems
appropriate io remedy such failure. All sums, including reasonable atiormey fees, so

expended or expended to maintain the lien or estate of this Trust Deed or its priority, or t©
protect or enforce any of Beneficiary's rights under this Trust Deed, or 10 recover any
indebtedness secured by this Trast Deed, will be a lien on the Trust Property, will be secured
by this Trust Deed, and will be paid by Grantor upon demand, together with interest at the
default rate provided in the Note. No payment or other action by Beneficiary under this
section will impair any right or remedy available to Beneficiary or constitute a waiver of any
default. In connection with the preceding, the following disclosure is made pursuant to
Cregon statute (ORS 746.201):

WARNING

Unless Crantor provides Beneficiary with evidence of the insurance coverage as
required by this Trust Deed, Beneficiary may purchase insurance at Grantor’s expense
o protect Beneficiary's interest. This insurance may, but need not, also protect
Grantor’s interest. [f the collateral becomes damaged, the coverage Beneficiary
purchases may not pay any claim Grantor makes or any claim made against Grantor.
Grantor may Jater cancel this coverage by providing evidence that Grantor has obtained
property coverage elsewhere.

Grantor is responsible for the cost of any insurance purchased by Beneficiary. The cost
of this insurance may be added to Gramtor's contract or loan balance. If the cost is
added to Grantor's contract or loan balance, the interest rate on the underlying contract
or loan will apply to this added amount. The effective date of coverage may be the date
Girantor’s prior coverage lapsed or the date Grantor Fafled to provide proof of coverage.

The coverage Beneficiary purchases may be considerably more expensive than
insurence Grantor can obtain on its own and may not satsfy any need for property
damage coverage or any mandatory lability insurance requirsments imposed by
applicable law.

1.16. Estappel Certificates. Grantor, within ten (10) days of request, will furnish Trustee and
Beneficiary a written statement, duly acknowledged, of the amount of the Obligations
secured by this Trust Deed and whether any offsets or defenses exist against the Obligations.
If Grantor Fails to furnish such a statement within the tme allowed, Bensficiary will be
authorized, as Grantor's atforney-in-fact, to execute and deliver such statermnent. Upon
request, Grantor will also use its reasonable efforts to cbtain and deliver to Beneficiary a

written certificate from each lessee of all or any part of the Trust Property that its lease is in
effect, that there are no defaulis by the lessor under such lease, or if any such defaults exist,

identifying the same, and that tent is not patd more than 30 days in advance.

ARTICLEN
CONDEMNATION
2.1. Condemnation.
2.1.1. Should all or any part of the Trust Property or interest in the Trast Property be

taken or damaged by reason of any public improvement, eminent domain or
condemnation proceeding, or settiement in lien thereof, or in any other manner (a
“Condemnation™), or should Grantor receive any notice or other information regarding
such proceeding or offer of settlement in lieu thereof, Grantor will give immediate
notice to Beneficiary.

2.1.2. Beneficiary will be entitled to all compensation, awards and ‘other payments
(“Condemnation Proceeds”) or relief, and will be entitled, at its option, to commence,
appear in and prosecule any Condemnation proceeding in its own or Grantor's narne
and make any compromise or seitlement in connection with such Condemnation. If
the Trust Property is taken in its entirety by condemnation, all Obligations secured by
this Trust Deed, at Beneficiary's electon, will betome immediately due and
collectible.

2.1.3. Beneficiary may, at its sole option, apply all or any part of the Condemnation
Froceeds to the reduction of the Obligations in such order as Beneficiary may
determine, or apply all or any part of the Condemnation Proceeds to the cost of
restoring and improving the remaining Property and Improvements. In the event that
Beneficiary elects to apply the Condemnation Proceeds to restoration and
improvement, those proceeds will be held by Beneficiary and will be released only
upon such terms and conditions as Beneficlary may require, including prior approval
of plans and release of liens. Ne Condemnation Proceeds wilk be released if Grantor is
in defavlt under this Trust Deed.

ARTICLE HI
ASSIGNMENTS OF LEASES, RENTS, ISSUES AND PROFITS

3.1. Assignmenr. Crantor assigns and transfers to Benefiviary (2) all leases, subleases,
licenses, rental contracts and other agreements, both now existing and arising 2t any ime
in the future, relating to the occupancy or use of all or any portion of the Trust Property,
including all modifications, extensions and renewals (the ‘TLeases™), and (b) all rents,
revenues, issues, profits, income, proceeds and benefits derived from the Trust Property

and the lease, rental or license of all or any portion of the Trust Property, including lease
and security deposits (cellectively, the “Rents”}. This assignment is intended by Grantor
and Beneficiary to create a present and unconditional assignment to Beneficiary, subject

only to the license set forth in Section 3.04 below.

3.2. Righrs of Bengficiary. Subject to the provisions of Section 3.04 below giving Grantor
& Tevocable, limited license, Beneficiary will have the right, power and authority to:
3.2.1. notify tenants, renters, licensees and other obligors under any of the Leases that
the Leases have been assigned to Beneficiary and that all Rents are to be paid directly
1o Beneficiary, whether or not Beneficiary has foreciosed or commenced foreclosure
proceedings against the Trust Property, and whether or not Beneficiary has taken
possession of the Trust Properly;
3.2.2. to discount, settle, compromise, release or extend the time for payment of, any
amounts owing under any of the Leases and any Rents on terms acceptable to
Beneficiary;

3.2.3, to callect and enforce payment of Rents and all provisions of the Leases, and to
prosecute any action or proceeding, in the name of Granter or Beneficiary, with
respect to any and all Leases and Rents; and

3.2.4. o exercise any and all other rights and remedies of the lessor in connection with
any of the Leases and Rents.

3.3. Applieation of Receipts. Beneficiary will have the right, power and authority to use and
apply any Rents received under this Article III {a) for the payment of costs and expenses
incurred in comnection with enforcing or defending the terms of or the rights of
Beneficiary under this assignment and in collecting any Rents; and (b) for the operation
and maintenance of the Trust Property and the payment of all costs and expenses in
commestion with such operation and maintenance, including the payment of utilities, taxes,
assessments, governmental charges and insurance. After the payment of all such costs and
expenses, and after Beneliciary has set up such reserves as it deems necessary in its sole
discretion for the proper management of the Trust Property, Beneficiary will apply all
remaining Rents collected and received by it to the reduction of the QObligations in such
order as Beneficiary determines. The exarcise or failure by Beneficiary to exercise any of
the righls or powers granted in this assignment will not coastitute a waiver of default by
Grantor under this Trust Deed, or any of the other Loan Documents.

3.4, License. Beneficiary prants to Grantor a revocable license to collect and receive the
Rents. Such license may be revoked by Beneficiary, without notice to Grantor, upen the
occurrence of any event of default under this Trust Deed, including any defacht by
Grantor of its covenants in this Article I Unless and until such license is revoked,
Grantor agrees to apply the proceeds of Rems to the payrment of the Obligations and to the
payment of taxes, assessments, governmental charges, insurance premiums and other
obligations in connection with 1he Trust Property, and to the maintenance of the Trust
Property, before using such proceeds for any other purpose. Grantor agrees to {a) observe
and perform all Grantor's obligations under the Leases; (b) enforee or secure at Grantor’s
expense the performance of every obligation to be performed by any lessee or other party
under the Leases; (¢} promptly give notice to Beneficiary of any default by any such
lessee or other party under any of the Leases, and prompily provide Beneficiary a copy of
any notice of default given fo any such lessee or other party; (d) not collect any Rents
more than 30 days in advance of the time when they become due, or anticipate any other
paymenis under the Leases, excepl for bona fide security deposits not in excess of an
amount equal 1o two months’ rent; {e) not further assign or hypothecate any of the Leases
or Rents; {f} except with Beneficiary’s prior written consent, not waive, release, or in any
other manner discharge any lessee or other party from any of its obligations under any of
the Leases; (g) except with Beneficiary’s prior written consent, not modify or amend any
of the Leases; (h) except with Beneficiary’s prior written consent, not cancel, terminate,
or accept surrender of any of the Leases unless Grantor has entered into a Lease for the
space to be vacated upon terms at least as favorable to Grantor, commencing within 30
days after such cancellation, termination or surrender; (1) obtain Beneficiary's prior
written approval as to the form and content of all future Leases and any modifications of
any present or furure leases; (j) prompily deliver copies of all present and future Leases o

Beneficiary; and (k) appear in and defend, at Grantor's scle cost and expense, any action
or proceeding 2rising oot of or in connection with the Leases or the Rents.

3.5, Limitation of Beneficiary's Obligations. Nowwithstanding the assignment provided for
in this Artcle I, Beneficiary will not be obligated to perform er discharge, and
Beneficiary does not undertake to perform or discharge, any cbligation or liability with
respect to the Leases or the Rents. This assignment will not operate to place responsibility
for the control, care, maintenance or repair of the Trust Property upon Beneficiary, or
make Beneficiary responsible for any condition of the Property. Beneficiary will be
accountable to Grantor only for sums actually collected and received by Beneficiary
pursuant to this assignment. Grantor shall hold Beneficiary fully harmiess from,
indemnify Beneficiary for and defend Beneficiary against any and all claims, demands,

liabilities, losses, damages and expenses, including attorney fees, arising out of any of the
Leases, with respect to any of the Rents, or in connection with any claim which may be
asserted against Beneficiary on accouni of this assignment or any obligation or
undertaking alleged (o arise from such assignment.

3.6, Termination. The assignment provided for in this Article TII shall continve in full
force and effect until ajl of the Obligations have been fully paid and satisfied and the
Loan Documents have been terminated. At such time, this assignment and the authority
and powers in this Article ITI granted by Granter to Beneficiary will terminate.

3.7. Anorney-in-Fact. Grantor irrevocably constitutes and appoints Beneficiary, and each
of its officers, as its true and lawfully attorney-in-fact, with power of substitution, to
undertake and execute any and all of the tights, powers and authorities described in this
Article TII with the same force and effect as if undertaken or performed by Grantor, and
Grantor ratifies and confirms any and all such actions which may be taken or omitied Lo
be taken by Beneficiary, its employees, agents and attorneys.

ARTICLE IV
SECURITY AGREEMENT AND FIXTURE FILING

4.1 To secure the Obligations, Granior grants to Beneficiary a security interest in the
following:
(i) the Trust Property to the extent it is not encumbered by this Trust Deed as a first priority
real estate lien; (ii) all personal property that is used or will be used in the construction of any
Improvements on the Trust Property; (iii) all personal property that is now or will in the
future be placed on or in the Trust Property or Improvements; (iv) all personal property that is
derived from or used in connection with the use, occupancy, or enjoyment of the Trust
Property; (v) all property defined in the Uniform Commercial Code as adopted in the state of
Oregon as accounts, equipment, fixtures, and general intangibles, to the extent the same are
used at, or arise in connection with the ownership, maintenance, or operation of, the Trust
Property; (vi) all causes of action, claims, security depoesits, advance rental payments, utility
deposits, refunds of fees or deposits paid to any governmental authority, refunds of taxes, and
refunds of insurance premiums relating 1o the Trust Property; and (vii) all present and future
attachments, accessions, amendments, replacements, additions, products, and proceeds of

every nature of the preceding. This Trust Deed constitutes a security agreement and “fixture
filing™ under the Uniform Commercial Code-Secured Transactions statutes of the state of
Oregon. The mailing address of Grantor and the address of Beneficiary from which
information may be oblained are set forth in the intreductory paragraph of this Trust Deed.

ARTICLE V
EVENTS OF DEFAULT; REMEDIES
5.1. Events of Default. Bach of the following will constitute an Event of Defanlt under this
Trust Deed and under each of the other Loan Documents:

£.1.1. Nonpayment. Failure of Gramfor to pay any of the Obligatons, including
payments required by this Trust Deed or any other Loan Document, on of before the
due date.
5.1.2. Breach of Other Covenanzs. Fallure of Grantor o perform or abids by any other
covenant included in the Loan Documents, within five {5} days after written notice
from Lender advising Grantor of such failure.
5.1.3. Misinformation. Falsity when made in any material respect of amy
representation, warranty or information furnished by OGrantor or its agents to
Beneficiary in or in connection with any of the Obligations.
5,1.4, Other Defauit. The occurrence of any other event of default under the Note or
any other document evidencing or securing the Note.
5.1.5. Bankruprey, The occurrence of any of the following with respect to the
Property, Grantor, or the then owner of the Property or Improvements: (i)
appointment of a receiver, liquidator, or trustee that is not dismissed or removed
within 30 days of sppeintment; (il} adjudication as bankrupt or insolvent; (ili)
veluntary filing of any petition under any state or federal bankruptey, reorganization,
moratorivm or insolvency law or an involuntary filing of apy such petition that is not
dismissed or removed within 30 days; (iv) institution of any proceeding for dissolution
or liguidation; (v} inability to pay debts when due; (vi) any general assignment for the
benefit of creditors; or (vii} abandonment of the Property or fmprovements for more
than 30 days without reasonable justification.
3.1.6. Transfer; Due-on-Sale; Due-gn-Encumbrance. Any sale, gift, conveyence,
contract for conveyance, transfer, assignment, encumbrance, pledge or grant of &
securily interest in all or any part of the Trust Property or any interest in the Trust
Préperty, cither voluntarily, involuntarily, or by the cperation of law (s “Transfer”),
without Beneficiary's prior written consent. The provisions of this subsection (f) will
apply 1o each and every Transfer, regardless of whether or not Beneficiary has
consented or waived its rights in connection with any previous Transfer. Beneficiary
may attach sech conditions to its consent under this subsection (f) as Beneficiary may
determine in its sole discretion, including an increase in the interest rate or the
payment of transfer or assumption fees, payment of administrative and legal fees and
costs incurred by Beneficiary.
5.1.7. Certain Taxes. For purposes of this subsection (g), “State Tax” means:

5.1.7.1. A specific tax on mortgages, trust deeds, secured indebtedness or any part

of the indebtedness secured by this Trust Deed.

5.1,7.2. A specific tax on the grantor of property subject o a trust deed which the

taxpaver is authorized or required to deduct from paymenis on the trust deed.
5.1.7.3. A tax on property chargeable against the Beneficiary or Trusice under a
trust deed or holder of the note securing such a trust deed.
5,1.7.4. A specific tax (other than an income tax or a gross receipts tax) on all or
any portion of the indebtedness or on payments of principal and interest made by
Grantor.
5.1.7.5. If any State Tax is enacted after the date of this Trust Deed and is
applicable to this Trust Deed, enaciment of the State Tax will constitute an event
of default, uniess the following conditions are met:
5.1.7.5.1. Grantor may lawfully pay the tax or charge imposed by the State Tax
without causing any resulting ecopomic disadvantage or increase of tax
Beneficiary or Trustee, and
5.1.7.5.2. Granfor pays Or 2grees in wiiting to pay the tax or charge within
thirty (30} days after notice from Beneficiary or Trustee that the State Tax has
been enacted.

5.2, Remedies in Case of Default. If an Event of Default occurs, Beneficiary or Trustee, as

the case may be, may exercise any one or more of the following rights and remedies, in

addition to any other remedies which may be available by law, in equity, or atherwise:
5.2.1. Acrelerarion. Beneficiary may declare 2ll or any portion of the Obligations
immediately due and payable.
5.2.2. Receiver. Beneficiary may have a receiver appointed for the Trust Property.
Beneficiary will be entitled to the appointment of a receiver as a maller of right
whether or nol the apparent value of the Trust Property exceeds the amount of the
indebiedness secured by this Trust Deed. Employment by Trustee or Bengficiary will
not disqualify a person from serving as receiver. Grantor consents to the appointment
of a receiver at Beneficiary’s option and waives any and all defenses to such an
appointment.
5.2.3. Possession. Beneficiary may, either throngh a receiver or as lenderinpossession,
enter and take possession of all or any part of the Trust Property and use, operate,
manage and control it as the Beneficlary deems appropriate in its sole discretion.
Upon request after an Event of Default, Grantor will peacefully relinquish possession
and control of the Trust Property to Beneficiary or any receiver appointed under this
Trust Deed.
5.2.4. Renrs. Beneficiary may revoke Grantor's right to collect the Rents, and may,
either itself or through a receiver, collect the Rents. Beneficiary will not be deemed o
be in possession of the Property solely by reason of exercise of the rights contained in
this subsection (d). If Rents are collected by Bereficiary under this subsection (d),
Grantor irrevocably appoints Beneficiary as Grantor's attorey-in-fact, with power of
subgtitution, to endorse instruments received in payment of Rents in the name of
Grantor and to negetiate and collect the proceeds of such instruments. After payment
of all Obligations, any remaining amounts will be paid to Grantor and this power will
terminate.
5.2.5. Power of Sale. Beneficiary may direct Trustee, and Trustee will be empowered,
to foreclose the Property by advertisement and sale under applicable law.

5.2.6. Foreclosure. Beneficiary may judicially foreclose this Trust Deed and obtain a
judgment foreclosing Grantor's interest in &ll or any part of the Property and giving
Beneficiary the right to collect any deficiency remaining due after disposition of the

Trust Property,

$.2.7. Fixtures and Personal Property. With respect to any fixtures or personal property
subject 10 a secority interest in favor of Beneficiary, Beneficiary may sxercise any and
all of the rights and remedies of a secared party under the Uniform Commereial Code.
5.2.8. Abandonment. Beneficiary may abandon all or any portion of the Trust Property
by written notice to Grantor,

5.3. Sale. In any sale under this Trust Deed or pursuant 1¢ any judgment, the Trust
Property, to the extent permitted by Jaw, may be sold as an entirety or in one or more
parcels and in such order as Beneficlary may elect, without regard to the right of Grantor,
any person claiming under Grantor of any guarantor of surety o the marshaling of assets.
The purchaser at any such sale will take title 1o the Trust Property or the part of the Trust
Property sold free and clear of the estate of Grantor, the purchaser being discharged from
all liability to see to the application of the purchase money. Any person, including
Beneficiary, may purchase at any such sale. Grantor irrevocably appoints Beneficiary as
Grantor's attorneyinfact, with power of substitution, to make all appropriate ransfers and
deliveries of all or any part of the Trust Property so sold and, for that purpose,
Beneficiary may execute all appropriate instruments of transfer. Nevertheless, Grantor
will ratify and confirm, or cause to be ratified and confirmed, any such sale or sales by
executing and delivering, or by causing to be executed and delivered, to Beneficiary or to
such purchaser or purchasers ali such instruments as may be advisable, in the judgment of
Beneficiary, for such purpose.

5.4, Cumularive Remedies. All remedies under this Trust Deed are cumulative and not
exclusive. Any election 1o pursue one remedy will not preclude any other remedy. An
election by Beneficiary to cure under Section 1.15 will not constitute a waiver of rhe
default or of any of the remedies provided in this Trust Deed. No delay or omission in
exercising any right or remedy will impair that or any other right er remedy or constitute 2
waiver of the default.

5.5. Receiver or TrusteeinPossession, Upon taking possession of all or any part of the Trust
Property, Trustee, Beneficlary or a receiver may:
5.8.1, Managemeni, Use, operate, manage, control and conduct business with the Trust
Property and make expenditures for such purposes and for mainlenance and
improvemenis as are reasonably necessary.
5.5,2. Rents and Revenues. Collect all rents, revenues, income, issues and profits from
the Trust Property and apply such sums to the reasonable expenses of use, operation,
management, maintenance and improvements.
5.5.3. Conspuction. At its option, complete any construction in progress on the
Property, and in that connection pay bills, borrow funds, employ coniractors and make
any changes in plans and specifications as it deems appreprate.
5.5.4. Additional Indebedness. If the revenues produced by the Trust Property are

insufficient to pay expenses, Beneficiary, Trustee or the receiver may borrow of
advance such sums upon such terms as it deems reasenably necessary for the purposes
stated in this section. All advances will bear interest, unless otherwise provided, at the
rate set forth in the Note, and repayment of such sums will be secured by this Trust
Deed.

5.6, Applicasion of Proceeds. All proceeds realized from the exercise of the rights and
remedies under this Article V will be applied as follows:
5.6.1. Costs and Expenses. To pay all costs of exercising such rights and remedies,
including the costs of maintaining and preserving the Trust Property, the cosis and
expenses of any receiver or lenderinpossession, the costs of any sale, and the costs and
expenses provided for in Secton 6.07 below.
5.6.2. Indebredness. To pay all Obligatons, in such order as Benmeficiary deems
appropriate in its sole discretion.
5.6,3. Surplus. The surplus, if any, remaining after satisfaction of all the Obligations
will be paid to the clerk of the court n the case of a judicial foreclosure proceeding,
otherwise to the person or persons Jegally entitled to such surplus.

8.7, Deficiency. No sale or other disposition of all or any part of the Trust Property
pursuant fo this Article V will be deemed to relieve Granior of any of ihe Obligations,
except to the extent the proceeds of such sale or disposition are applied to the payment of
such Obligations or if a deficlency judgment is precluded by applicable law. If the
proceeds of sale, collection or other realization of or upon the Trust Property are
insufficient to cover the costs and expenses of such realization and the payment in full of
the Obligations, Grantor will remain liable for any deficiency to the maximum extent
permissible under applicable law.

3.8, Waiver of Stay, Exvension, Moratorium and Valvation Lews. To the fullest extent
permitted by law, Grantor waives the benefit of any existing or future stay, extension or
moratorium Jaw which may affect observance or performance of the provisions of this
Trust Deed and any existing or future Taw providing for the valvation or appraisal of the
Trust Property prior to any sale.

ARTICLE VI
GENERAL PROVISIONS
6.1. Time Is of the Essence. Time is of the essence with respect (o all covenanls and
obligations of Grantor under this Trust Deed.

6.2, Reconveyance by Trustee. Al any time upon the request of Beneficiary, payment of
Trustee's fees, if any, and presentation of this Trust Deed, without affecting Lability of
any persons for the payment of the Obligations, Trustee may reconvey, without warranty,
all or any part of the Trust Property. The grantee in any reconveyance may be described as
the “person or persons legally entitled to the property conveyed,” and the recitals of any
facts in such reconveyance will be conclusive proof of their truthfulpess. Graotor shall
pay: all costs, fees and expenses of this Trust Deed, including, without limiting the

penerality of the foregoing, the fees of Trustee for issuance of any Deed of Partial
Release and Partial Reconveyance or Deed of Release and Full Reconveyance as well as
Beneficiary costs, fess and expenses associated with the facilitation and tracking of works
performed, or to be performed, by Trustee in an amount not to sxceed $795.00 and all
lawful charges, costs and expenses in the event of reinstatement of, following default in,
this Trust Deed or the obligations secured hereby.

6.3. Notice. Except as otherwise provided in this Trust Deed, all notices permitted or
required by this Trust Deed will be in writing and may be delivered by hand, or mailed by
first class, registered or certified mail, rerem Teceipt requested, postage prepaid, and
addressed to the apprepriate party at its address set forth at the outset of this Trust Deed.
Any party may change its address for such notices from Hme to time by notice to the
other parties. Notices given by mail in accordance with this paragraph will be deemed to
have been given upon the date of mailing; notices given by hand will be deemed to have
been given when received.

6.4. Substitate Trustee. In the event of dissohition or resignation of Trustee, Beneficiary
may substitute one or mere trustees to execute the trust created by this Trust Deed, and
the new trustea(s) will succeed to all the powers and duties of the prior trustee(s).

6.5. Trust Deed Binding on Succesiors and Assigns, This Trust Deed will be binding upon
and inure o the benefit of the successors and assigns of Grantor, Trustce and Beneficiary.
If the Trust Property or any portion thereof shall at any time be vested in any person other
than Grantor, Beneficiary shall have the right to deal with such successor regarding this
Trust Deed, the Trust Property, and the Obligations in such manner as Beneficiary deems
appropriate in its sole discretion, without notice to or approval by Grantor and without
impairing Grantor's liability for the Chligations.

6.6, Indemnity. Grantor will hold Beneficiary and Trustee and their respective directors,
officers, employess, agents and attorneys, harmless from and indemnify them for any and
all claims, demands, damages, liabilities and expenses, inchuding aftorney fees and court
costs, arising out of or in connection with Trusiee’s or Beneficlary's interest under this
Trust Deed, except Grantor will not be lable for acts performed by the Beneficiary or
Trustee in violation of applicable law.

6.7. Expenses and Ancrney Fees. If Beneficiary refers any of the Obligations to an
attorney for collection or seeks legal advice following a default; if Beneficiary is the
prevailing party in any litigation instituted in connection with any of the Obligations; or if
Beneficiary or any olber person initiates any judicial or nonjudicial actiom, suit or
proceading in connection with apy of the Obligations or the Trust Property {including
proceedings under federal bankruptey law, eminent domain, under probate proceedings or
in connection with any state or federal tax lien), and an atiomey is employed by
Beneficiary to {a) appear in any such action, suit or proceeding, cr (b} reclairn, seek relief
from = judicial or starulory stay, sequester, pratect, preserve or enforce Beneficiary's
interests, then in any such event Grantor will pay reasonable arorney fees, costs and
expenses incurred by Beneficiary and/or its attorney in connection with the above

mentioned events or any appeals related to such events, including costs incurred in
searching records, the cost of title reports and the cost of surveyors’ reports. Such amounts
will be secured by this Trust Deed and, if not paid upon demand, will bear interest at the
default rate specified in the Note,

6.8. Applicable Law. The laws of the state of Oregon will govern the validity,
interpretation, performance and enforcement of this Trust Deed.

6.9. Capripns, The eaptions 1o the sections and paragraphs of this Trust Deed are included
only for the convenience of the parties and will not have the effect of defining,
diminishing or enlarging the rights of the parties or affecting the construction or
interpretation of any portion of this Trust Deed.

6.10. “Includes” or “Including” Defined. As used in this Trust Deed, the words “includes”
and “including” are not limiting.

6.11. “Person” Defined. As used in this Trust Deed, the word “person” mezns any natural
person, parinership, trust, corporation or other legal entity of any nature.

6.12. Severabifity. If any provision of this Trust Deed is held to be invalid, illegal or
unenforceable, such invelidity, illegality or unenforceability will not affect any other
provisions of this Trust Deed, and such other provisions will be construed as if the invalid,
illegal or unenforceable provision had never been contained in this Trust Deed.

6.13. Enrire Agreemenz. This Trust Deed together with the Loan Documents contains the
entire agreement of the partics with respect to the subject matter hereof. No prior
agreement, stalement or promise made by amy party to this Trust Deed that is not
contained in this Trust Deed will be binding or valid.

6.14. Commercial Property. Grantor covenants and warrants that the Property and
Improvements are used by Grantor exclusively for business and commercial purposes.
Grantor also covenants and warrants that the Property and Improvements are net now, and
at no time in the future will be, occupied as the principal residence of Grantor, Grantor's
spouse, or Grantor's minor of dependent child.

6.15. Counterparts. This Trust Deed may be executed in two or more counterparts, each of
which will be considered an original, but all of which together will constitute the same
instrument.

6.16. Parricipation Interests. Beneficlary may, without the consent of Grantor, af any time
grant one or more participation interests in the Loan Documents to any person.

6.I7. WARNING (CRS 93.040). BEFORE SIGNING OR ACCEPTING THIS
INSTRUMENT, THE PERSON TRANSFERRING FEE TITLE SHOULD INQUIRE
ABOUT THE PERSON'S RIGHTS, IF ANY, UNDER ORS 195.300, 195301 AND
195.305 TO 195.336 AND SECTIONS 5 TO 11, CHAPTER 424, OREGON LAWS

2007, SECTIONS 2 TO 9 AND 17, CHAPTER 8535, OREGON LAWS 2008, AND
SECTIONS 2 TO 7, CHAPTER 8, OREGON LAWS 2030, THIS INSTRUMENT DOES
NOT ALLOW USE OF THE PROPERTY DESCRIBED IN THIS INSTRUMENT IN
VIOLATION OF APPLICABLE LAND USE LAWS AND REGULATIONS. BEFORE
SIGNING OR ACCEPTING THIS INSTRUMENT, THE PERSON ACQUIRING FEE
TITLE TC THE PROPERTY SHOULD CHECK WITH THE APPROPRIATE CITY
OR COUNTY PLANNING DEPARTMENT TO VERIFY THAT THE UNIT OF LAND
BEING TRANSFERRED IS A LAWFULLY ESTABLISHED LOT OR PARCEL, AS
DEFINED IN ORS 92.010 OR 215.010, TO VERIFY THE APPROVED USES OF THE
LOT OR PARCEL, TO DETERMINE ANY LIMITS ON LAWSUITS AGAINST
FARMING OR FOREST PRACTICES, AS DEFINED IN ORS 30.930, AND TO
INQUIRE ABOUT THE RIGHTS OF NEIGHBURING PROPERTY UWNERS, IF
ANY, UNDER ORS 193.300, 195.301 AND 195.303 TO 195.336 AND SECTIONS 5
TO 11, CHAPTER 424, OREGON LAWS 2007, SECTIONS 2 TO 9 AND 17,
CHAPTER 855, ORBGON LAWS 2009, AND SECTIONS 2 TO 7, CHAPTER 8,
OREGON LAWS 2010.

6.18. STATUTORY DISCLOSURE (GRS 41.580). UNDER OREGON LAW, MOST
AGREEMENTS, PROMISES AND COMMITMENTS MADE BY LENDER
CONCERNING LOANS AND OTHER CREDIT EXTENSIONS WEICH ARE NOT
FOR PERSONAL, FAMILY OR HOUSEHOLD PURPOSES OR SECURED SOLELY
BY THE BORROWERS RESIDENCE MUST BE IN WRITING, EXPRESS
CCNSIDERATION AND BE SIGNED BY THE LENDER TO BE ENFORCEAELE.

[SIGNATURE PAGE FOLLOWS]

IN WITNESS WHEREOQF, the Grantor has executed this Trust Deed as of the date first set
forth above.

“Cranter”

Kevin Loop

- // ;.
By: LS
Signature: Kevin Loop Date
STATE OF

) ss.

COUNTY OF y /

persongs) who appeared before me. Said person(s) gcknowledged that (he/she/they) signed this
instrument and acknowledged it to be (his/her/ &ir) free and voluntary act for the uses and
purposes mentioned in this inetrument and, on ¢ th, stated that (he/she/they) (is/are) autherized
to exgcule the instrument. ra

s
Given Under My Hand And D?‘l%? Seal this day of

7

2026.

Signature

Printed Name

NOTARY PUBLIC in and fof the State of

Residing at

My Commission Expireg

Acknowledgement for/f? %}L \;{’L@f{ Q{j(‘ [;’? ?}@ir??f‘? 2{2/"'7['& gf{,?{fL)lt/ Qd_/?-t)[’f,{/)‘?:}'
(L }f,ysy‘uw f;/mc]

“A notary public or other officer completing this centificate verifies only the
identity of the individual who signed the document, to which this certificate
is attached, and not the truthfulness, accuracy, or validity of that document.”

State of Californi

County of %_:ily, }f{\f (j[{ Fa

; hy T A s .
On (?/rfbk? il f ‘7’, a4 ?C’ . before me - F { 1{7.‘{1/’;55/3_, Notary Public
L
personally appeared L?\’ evin L?{f‘f?j

who proved to me on the basis of satisfaclory evidence to be the pel?sn@fxahose namc{@
subscribed to the within instrument and acknowledged.to me that ffe/she/they executed the same
in @er’tlzexr authorized capacity (iesy and that by kf}}her ‘their blgnalUIC(j}’Oll the instrument
the person(s¥, or the entity upon behalf of which the person(sy-acted, executed the instrument.

I certify under PENALTY OF PERJURY under the laws of the State of California that the
foregoing paragraph is true and correct.

WITNESS my hand and official seal.

Signature %{%f/f&b{/ {Seal)
. i

K. F. COQPER 2
Comm. % 2410087 U}

KOTARY PUBLIC- CALIFORMIA
SaNtA CLara COUNTY

Mr Coum, Exe. AuG. 1, 2026 T

EXHIBIT A
Real Property Description

APN: 3809-033A8-06200 / 418195,
Situs Address: 345 & 347 Division 5t. Klamath Falls, OR, 87601

Legal Description: Lots 7 and 8, Block 24, INDUSTRIAL ADDITION to the City of Klamath
Falls, in the County of Klamath, State of Oregon, according to the official plat thereof on file
in the office of the County Clerk of ¥lamath County, Oregon.

EXHIBIT B
Exceptions o Title

Exceptions: