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MMD2011-00006 fS d ®t AFFIDAVIT OF MAILING . d N ,. f I, Patricia L. Lunsford, being first duly sworn /affirm, on oath depose and say that I am a Planning Assistant for the City of Tigard, Washington County, Oregon and that I served the following: �CLcek Appinpnu�c It,(s) lido,v� © NOTICE OF DECISION FOR: MMD2011 -00006 /BLITZ SPORTS PUB DECK 0 AMENDED NOTICE ® City of Tigard Planning Director A copy of the said notice being hereto attached, marked Exhibit "A ", and by reference made a part hereof, was mailed to each named person(s) at the address(s) shown on the attached list(s), marked Exhibit "B ", and by reference made a part hereof, on May 18, 2011, and deposited in the United States Mail on May 18, 2011, postage prepaid. O .46.1 A4 _./. MII (Person at Prepared Noe - e j STATE OF OREGON County of Washington ss. City of Tigard Subscribed and sworn /affirmed before me on the (.7 /-e) day of 17- I , 2011. �} f' "'? OFFICIAL SEAL ►) c F ^"g-'r SHIRLEY L TREAT r ( NOTARY PUBLIC OREGON OREGON () AbiLtil ��� COMMISSION NO-. 459846 ( e, MY COMMISSION EXPIRES JULY 06, 2015 NOTARY PUC OF OREGON My Commission Expires: 7 ( I ( EXHIBIT A TIGARD May 18, 2011 City of Tigard Rich Grimes Blitz Sports Pub 1627 NW 14 Ave. Portland, OR 97209 RE: Blitz Sports Pub Minor Modification Approval (MMD2011- 00006) 10935 SW 68 Pkwy.; WCTM 1S136AD, Tax Lot 6502 Dear Mr. Grimes: This letter is in response to your request for a Minor Modification (MMD2011- 00006) of an existing eating and drinking establishment located at 10935 SW 68 Parkway. The applicant has proposed constructing an 820 square foot, uncovered deck on the south side of the building. Two parking spaces, landscaping, and a sidewalk will be affected by the addition. Analysis of Modification Request: Section 18.360.060 of the Tigard Development Code Site Development Review chapter, states; "any modification which is not within the description of a major modification as provided in section 18.360.050 shall be considered a minor modification." Section 18.360.050 states that the Director shall determine that a major modification(s) has resulted if one (1) or more of the changes listed below have been proposed: 1. An increase in dwelling unit density or lot coverage for residential development. The proposal does not involve residential property. Therefore, this standard does not apply. 2. A change in the ratio or number of different types of dwelling units. This criterion is not applicable, as this request does not involve a residential development. 3. A change that requires additional on -site parking in accordance with Chapter 18.765. Parking requirements are based on building square footage. No building additions are proposed because the proposed deck is not covered and does not meet the definition of floor area. Two parking spaces will be affected by the proposed deck. The applicant has proposed relocating the two spaces along the eastern boundary of the site, near SW 68 Parkway. There is no net loss of parking spaces. This criterion is satisfied. 4. A change in the type of commercial or industrial structures as defined by the Uniform Building Code. No change in the structural type of the buildings is proposed. Therefore, this criterion is not applicable. 5. An increase in the height of the building(s) by more than 20 percent. The applicant has not proposed any changes to building height. Therefore, this standard is met. 6. A change in the type and location of accessways and parking areas where off-site traffic would be affected. The applicant has not proposed any changes to the type or location of accessways and off - street traffic will not be affected by the two relocated parking spaces. This standard is met. 7. An increase in vehicular traffic to and from the site and the increase can be expected to exceed 100 vehicles per day. The proposal is the addition of an 820 square foot deck. The use will remain an eating and drinking establishment. An increase in traffic is not expected. This standard is met. 13125 SW Hall Blvd. • Tigard, Oregon 97223 • 503.639.4171 Page 1 of 2 TTY Relay: 503.684.2772 • www.tigard- or.gov 8. An increase in the floor areas proposed for a non - residential use by more than ten percent excluding expansions under 5,000 square feet. There is no increase proposed to the square footage of the building since an uncovered deck does not meet the definition of floor area. Therefore, this criterion is satisfied. 9. A reduction in the area reserved for common open space and /or usable open space that reduces the open space area below the minimum required by the code or reduces the open space areas by more than ten percent. There is no common open space associated with this development. This standard is not applicable. 10. A reduction of project amenities (recreational facilities, screening; and /or, landscaping provisions) below the minimum established by the code or by more than ten percent where specified in the site plan. Approximately 214 square feet of landscaping will be removed for the proposed deck. According to the applicant's site plan there is 14,021 square feet of landscaping, which makes up 21.4% of the site. Removal of this landscaping will reduce the percentage to 21%. This is still above the 20% required within the General Commercial (C -G) zone and is not a reduction of more than ten percent. Screening will not be affected and there are no recreational facilities on the site. Therefore this criterion is met. 11. A modification to the conditions imposed at the time of Site Development Review approval that is not the subject of criteria (B). 1 through 10 above. Staff has performed a search of city records. The original approval for a restaurant development was issued for the site in May 1975 (SDR 12 -75). The applicant is not requesting a modification to the conditions imposed at the time of Site Development Review approval, nor does the proposal affect those same imposed conditions. This standard is met. This request is determined to be a minor modification to an existing site. The Director's designee has determined that the proposed minor modification of this existing site will continue to promote the general welfare of the city and will not be significantly detrimental, nor injurious to surrounding properties provided that, development which occurs after this decision complies with all applicable local, state, and federal laws and the condition of approval below: T7HIS REQUEST HASfBEEN= APPR:OVEDBY THEP INGDEPARTMENT SUBJcE ¢ g 'TO THE,. FOLLOWING CONDITION ® LIMITATIONS �°PLEASEISU.BMIT 1A�YCOPY OFg THIS; - s ' r x v& k LICATIO__ ,f,' n 4 d F , a a 3 „ r ,, i�, 7s3 i . r lk m, LETTER WITH YGS ERMI PT APPN� N � , b e n .. , :_� ��.. „'� OUR BUILDIN .. ... �:h.. ,?�`� 'F� -., ,..:� � - � ._._ �#�.�. '�S F z�.amk In.t . _� _ s;r.. _- l,�.+��; _. 1. Prior to final building inspection the applicant shall obtain approval for a final planning inspection. STAFF CONTACT: Cheryl Caines 503 -718 -2437. k 5 F t . 0TH ISilREQU FOR MINORMODIFICATION APPROVAL IS'HEREBY° GRANTED #, ry'w � ..., - . In . y l , +C f E ,r,� ,. � a l c ,:: I f +f 3 h 'j tk ' a 3 4 d. � :a -N I. �. ro .� ; ;; � ..a 6Y t ��! d°�`. .:' � sio � t :.. ' ` . �ai.a. ;,,, ;"ea.4a.I�"..r „♦tl ^. :.r If you need additional information or have any questions, please feel free to call me at 503 - 718 -2437. Since ly, Cheryl Gaines Associate Planner Page 2 of 2 ) I— OAK I — I S I to.' ,...4 1 1 I - liJ .....1 — 11 --.—__ 1........-.., I 1,___ PINE 5-r ..._11 l — — . 7 -__ 7 IIIIII- III. 1 IPP .. IIII 1 _ _ IIII I.- i o d , _ , _...._ \ . , ow no - ..... 7.::: ., ...,...,,d Illim 11111 ... _1_, ini -___ Mg k3A 1,64 R "U- ,„, --. VICINITY MAP MMD2011-00006 BLITZ SPORTS PUB DECK I Site 1:.-.....:.:1 SPRUCE. ST , ,-- T 21 7.< ...• teit .9.0..... 4 ,4•4 , :' =MI 111,v : min*/ , ford& -E- . 4A--- . 4, ik 41 • ... All, A I ,. , - • - . )- ie il l . intormation on oils map is tor general location only e a v n e c i l o s p h m o e u n id t be verified Division. v. ithte ....„.... N. ,•.. : i.i, , in Approx. bcale 1:4,UUU - 1 in . iii d n _ map printed at Ill :SU rm on 1 6-May-11 DATA IS DERIVED FROM MULTIPLE SOURCES THE CITY OF TIGARD MAKES NO WARRANT/ REPRESENTATION OR GUARANTEE AS TO THE _ • CONTENT AC.C.l1MAGY TIMELINESS OR OJIVIPILIEritS5 Of ANT Of THL UAL% PROVIEJED NEREIN 1HE GOY Of lIGARD SHALL ASSUlat NO LIABILITY FOR ANY ERRORS, OMISSIONS, OR INACCURACIES IN THE IrlflfflIVIATIONYRVVILCU FILLWISULL5. or rIVVV .....00 \ / ; city ot iigard Feet . - . AR _ , 0 50 0 \ T MA i g83 639-4171 11 11 I 1- . , / \ \ www.tigard-orgov .,: --,- • , z 4.1441' :1t9 5 meta 7 : :::::chl:somilete:11:11±11141:1349A:838:14 d °f Gv77C'�MEOO G34 131 V � , �. � ''.. � a 4D ®G1aD� , OQ / ..... -. wyad X ] -- - uo �o� .... e ddd :� ��` a bde11 ow§ og4ia Oa. •— —NEW PARKING SPACE • �s co 6 S p ACES a —C TOTAL — NEW PARKING SPACE ® PARKING • ® N . (IF) 90 SPACES • • - i i • • • O / �� 9 SPACES • • I tP/ HG ' HC S ' 1 SPACE • • _ ' . —o • nmi • 54 ■nm N EXISTING I ■ 9 . O - n — BUILDING g _RI 214er OF LANDSCAPING O N _ TO BE REMOVED -E N- - D D N N N I D ' 4 —m 11 i It izr. PATIO I 12EMOVE r � 2 SPACES • El III Q / .. , ( A% O SITE AND PARKING PLAN - - - ' — ..di : A .r 'W SITE AREA: 65 646s EXISTING LANDSCAPED AREA: 14021sf EXISTING LANDSCAPED PERCENT: 21.48 PROPOSED LANDSCAPED AREA: 13 807s PROPOSED LANDSCAPED PERCENT: 21.0% Rich Grimes MMD2011 -00006 Blitz Sports Pub BLITZ SPORTS PUB DECK 1627 NW 14 Ave. Portland, OR 97209 EXHIBIT. Lee W. Way 5210 SE 26t Avenue Portland, OR 97202 1S136AD06502 WAY W LEE 5210 SE 26TH AVE PORTLAND, OR 97202 5 M/ II �vv MINOR MODIFICATIOI' ECEIVED TYPE I APPLICATION MAY 1 0 2011 cJTY OF TIGARD City of Tigard Permit Center 13125 SW Hall Blvd., Tigard, OR 72Y' Phone: 503.639.4171 Fax: 503.598.1960 ► - LANFlff 3/ENGINEEIIING GENERAL INFORMATION FOR STAFF USE ONLY Property Address /Location(s): \1 0.s SW CD% ,e\C- .O■4\ 7 1 S 1 3 A p 0 tO 5o a Case No.(s): 3 3 0 (( ' Q1 3p Tax Map & Tax Lot #(s): Other Case No.(s): Site Size: �y Receipt No.: ( g / 3 �� C:1% � \.\) P .� Application � �. c Accepted By: S -" Date: I Applicant *: L• JZ 0/ Address: Ilp?„} L 1`Y-4` p'eEp City/State: CAL Zip: C \ - 1- - Cf:-'t Date Determined Complete: Primary Contact: a ✓Lt w,-t S Rev. 2/2/2011 Phone: 0 Lk Oct Fax: � C- t i \curpin \masters \land use applications \minor modification app.doc � � � L �-, � j �._, � � � � `� E -Mail: . RG ‘Vv•0t, ‘..a.1 cn 4'7.4'S rrr \ REQUIRED SUBMITTAL ELEMENTS Property Owner /Deed Holder(s) *: (Attach list if more than one) (Note: applications will not be accepted \ ,3 - , " r `�� without the required submittal elements) Address: `� Phone: City/State: Zip: ❑ Application Form PROPOSAL SUMMARY ❑ Owner's Signature /Written Authorization The owners of record of the subject property request permission for a Minor ❑ Tide Transfer Instrument or Deed Modification. To review a modification as a Minor Modification, the Director must first find that the expansion does not invoke one or more of the 11 criteria discussed ❑ Site Development Plan (3 copies) within Section 18.360.050(B) of the Tigard Development Code. If the modification exceeds the maximum allowed under any one or more of the following criteria, a ❑ Site /Plot Plan (reduced 8 /a" x 11") Major Modification review is required. Major Modifications are processed in the same manner as a new Site Development Review. In a separate letter, please address ❑ Applicant's Statement (3 copies) the criteria below contained in Section 18.360.050(B) including a detailed response to (Addressing Criteria Under Section 18.360.050(B) each criteria. ❑ Filing Fee $599.00 1. An Increase in dwelling unit density or lot coverage for residential development. 2. A change in the ratio or number of different types of dwelling units. 3. A change that requires additional on -site parking in accordance with Chapter 18.765. In addition, the Director must find that the proposed 4. A change in the type of commercial or industrial structures as defined by the change complies with the underlying standards of the fi Uniform Building Code. applicable zoning district. To complete this review, 5. An increase in the height of the buildings) by more than 20 %. the Applicant's proposal must include a discussion 6. A change in the type and location of accessways and parking areas where off - site indicating how the site expansion will continue to traffic would be affected. comply with the minimum setback, building height, 7. An increase in vehicular traffic to and from the site and increase can be expected parking land landscaping standards. Other applicable to exceed 100 vehicles per day. requirements such as minimum Clear Vision areas 8. An increase in the floor area proposed for a non - residential use by more than near driveways and street intersections may also be 10% excluding expansions under 5,000 square feet. applicable depending on where the building 9. A reduction in the area reserved for common open space and /or usable open expansion is proposed to be constructed on the site. space that reduces the open space area below the minimum required by this code or reduces the open space area by more than ten percent. 10. A reduction of project amenities (recreational facilities, screening, and /or, landscaping provisions) below the minimum established by this code or by more than 10% where specified in the site plan. 11. A modification to the conditions imposed at the time of Site Development Review approval that are not the subject of Criteria 1 through 10 above. APPLICANTS: To consider an application complete, you will need to submit ALL of the REQUIRED SUBMITTAL ELEMENTS as described on the front of this application in the "Required Submittal Elements" box. * When the owner and the applicant are different people, the applicant must be the purchaser of record or a lessee in possession with written authorization from the owner or an agent of the owner. The owner(s) must sign this application in the space provided on the back of this form or submit a written authorization with this application. BY SIGNING BELOW, THE APPLICANT(S) SHALL CERTIFY THAT: ♦ The above request does not violate any deed restrictions that may be attached to or imposed upon the subject property. ♦ If the application is granted, the applicant will exercise the rights granted in accordance with the terms and subject to all the conditions and limitations of the approval. ♦ All of the above statements and the statements in the plot plan, attachments, and exhibits transmitted herewith, are true; and the applicants so acknowledge that any permit issued, based on this application, and may be revoked if it is found that any such statements are false. ♦ The applicant has read the entire contents of the application, including the policies and criteria, and understands the requirements for approving or denying the application. ic4 Applicants Signature Date Owner's Signature Date Owner's Signature Date Authorized Agent's Signature Date Print Name Title Phone Number SIGNATURES of each owner of the subject property are required . . RECEIVED MAY 1 0 2011 II - q City of Tigard CITY OF Tir Minor Modification — Type I A TIGARD GENERAL INFORMATION In addition, the Director must find that the proposed Property Address/Location(s): ��q 7 -)S - �� I ci �1� t„ change is in compliancelwith all applicable requirements of Title 18 of the Tigard Development Code. To complete S 3 b CO Y this review, the Applicant's proposal must include a Tax Map & Tax Lot #(s): discussion indicating how the site expansion /change will continue to comply with the maximum setback, building Site Size: i (Q y(0 t height, parking, and landscaping standards. Other Applicant*: \ IL A� • requirements of this title such as clear vision, solid waste pP ° storage, non - conforming situations, signs, and tree Address: \ ( n � - 4 N, \ i removal may also be applicable depending on the type and City /State: P 6-- 012 c Zip: �ao� location of the proposed modifications. Primary Contact: 9 tCle- C ex`t •t Phone:t SSN4d't(6) Fax: 'SDI aa3 ac63 E -Mail: Y.,cr c \ r^(ti , (9 \/1/4) e.mrer-■-ceS ,C erv" Property Owner /Deed Holder(s) *: REQUIRED SUBMITTAL ELEMENTS (Attach list if more than one) / y A/. L 4 , i. K (Applications will not be accepted without the T 5 following required submittal elements) Address: 5Z. /e, 1`?SE ZGA vv Phone: gip" ,�,� City /State: /ft � 4d*I� Pt Zip: 47ZoZ [ application Form ner's Signature /Written Authorization * When the owner and the applicant are different people, the „ .. Transfer Instrument or Deed applicant must be the purchaser of record or a lessee in 11”) pP P / Site Plan (4 Large Plans &One - R educed to 8 /z" x 11 possession with written authorization from the owner or an Statement /Narrative (4 copies) agent of the owner. The owner(s) must sign this application in the space provided on the back of this form or submit a Filing Fee $599.00 written authorization with this application. Minor Modifications: Minor Modifications are processed for permitted uses and 1 conditional uses. To review a modification as a Minor Modification, the Director must first find that the expansion FOR STAFF USE ONLY or change does not invoke one or more of the criteria / AA D (1 - 060 o discussed within Section 18.360.050(B) - Site Development Case No.(s): Review or Section 18.330.020(B)(2) - Conditional Use. If the modification exceeds the maximum allowed under any one or Other Case No.(s): more of the criteria, a Major Modification review is required. I gau 3 Major Modifications are processed in the same manner as a Receipt No.: new Site Development Review or Conditional Use Permit. Date: 51( 01 II Applicant's Statement: Application Accepted By: S - 114\ The applicant's statement must include a summary of the Date Determined Complete: proposed changes. Criteria in either 18.360.050(B) or Revised 7/1/10 18.330.020(B) (2) must be addressed with a detailed response i \curpin \masters \land use applications \m c <„, ,drth: :LIT i6 ,c, to each criterion. Failure to provide the information needed to process the application would be reason to consider an application incomplete and delay review of the proposal. City of Tigard 13125 SW Hall Blvd., Tigard, OR 97223 503- 718 -2421 www.tigard-or.gov �, � I g I � g gov 1 Page 1 of 2 r• To consider an application complete, you will need to submit ALL of the REQUIRED SUBMITTAL ELEMENTS as described on the front of this application in the "Required Submittal Elements" box. (Detailed Submittal Requirement Information sheets can be obtained, upon request, for all types of Land Use Applications.) THE APPLICANT(S) SHALL CERTIFY THAT: ♦ The above request does not violate any deed restrictions that may be attached to or imposed upon the subject property. ♦ If the application is granted, the applicant will exercise the rights granted in accordance with the terms and subject to all the conditions and limitations of the approval. ♦ All of the above statements and the statements in the site plan, attachments, and exhibits transmitted herewith, are true; and the applicants so acknowledge that any permit issued, based on this application, and may be revoked if it is found that any such statements are false. ♦ The applicant has read the entire contents of the application, including the policies and criteria, and understands the requirements for approving or denying the application. SIGNATURES of each owner of the subject property. DATED this ,5 day of 7'177 , 20 1/ • , er's :tgnature rte0/0407 Owner's Signature Owner's Signature Owner's Signature Owner's Signature Owner's Signature City of Tigard 13125 SW Hall Blvd. Tigard, OR 97223 I 503 - 639 -4171 I www.tigard-or.gov I Page 2 of 2 CITY OF TIGARD RECEIPT 13125 SW Hall Blvd., Tigard OR 97223 • 503.639.4171 TIGARD Receipt Number: 182432 - 05/10/2011 CASE NO. FEE DESCRIPTION REVENUE ACCOUNT NUMBER PAID MMD2011 -00006 Minor Modification to an Approved Plan 1003100 -43116 $522.00 MMD2011 -00006 Minor Modification to an Approved Plan - 1003100 -43117 $77.00 LRP Total: $599.00 PAYMENT METHOD CHECK # CC AUTH. CODE ACCT ID CASHIER ID RECEIPT DATE RECEIPT AMT Check 1012 STREAT 05/10/2011 $599.00 Payor: Madden Group LLC Total Payments: $599.00 Balance Due: $0.00 Page 1 of 1 TYP ® 1 - --= TYPO • T = 7 1 1 I. ----t ! 1 F F _-. . -- - I . i ► . .. ,. . .- .� , I • e . 1 .` O 2x1) AT 1E'". vIAXIMUN ` ; TYP II TYP O • I , • `. I • S. i ' `. • , 4x' 2 4x12 `, ,'' 4x12 a-x12 `,, ,' x12 — ■ 4 .112 `, i "W ■ ■ ti i L J BRACING PER O TYPICAL B O TYP • DECK FRAMING PLAN 1/8- = 1' -0" DECK FRAMING PLAN NOTES. . 1 1. CONTRACTOR TO VERIFY ALL DIMENSIONS, ELEVATIONS AND EXISTING CONDITIONS. NOTIFY ENGINEER OF RECORD IMMEDIATELY OF ANY DISCREPANCIES. 2. DECK DESIGN CRITERIA: • DEAD LOAD = 10 PSF LIVE LOAD = 100 PSF (RESTAURANT) DEFLECTION = SMALLER OF LL /360, TL /240 3. NAILING OF 2x DECKING TO BE 16d RING OR SCREW SHANK NAILS WITH A MINIMUM OF (2) NAILS EACH BOARD, EACH SUPPORT AND 6" O.C. AT PERIMETER. 4. ALL WOOD FRAMING TO BE PRESSURE TREATED LUMBER. 1 IV 5/5/11 Project summary: We propose to build an uncovered deck on the south side of the restaurant. The deck will displace 217sgft. of landscaping. The remaining landscaping on the site is 13,807 sqft. which is 21.0% of the total 65,646 sqft. of the site. The deck will also displace 2 two parking spots which will be replaced in east row of the lot as indicated on the drawing attached. The total parking spaces for the site (90) will not change. This is below the standard that is required but what the restaurant has been operating with for over 30 years. We attempted to enter into an agreement with the neighboring businesses for their surplus but both of them are short their required spaces as well. I respectfully request that we be "grandfathered in ". Blitz is excited to become part of the Tigard community. We feel the deck will enhance the customer experience. With regard to the proposed "Minor Modification" to 10935 SW 68 Parkway, the following is a detailed response to the criteria contained in Section 18.360.050: 1. There is not an increase in unit density or lot coverage as this is not a residential development. 2. There is no change in ratio or types of dwelling units as this is not a residential development. 3. There is not an increase in floor area that would trigger an increase in on -site parking in accordance with Chapter 18.765. 4. There will be no change in the type of commercial or industrial structure as defined by UBC. 5. There will be no increase in the height of the building. 6. There is no change in the type or location of access ways and parking areas where off -site traffic would be affected. 7. There will be no increase in vehicular traffic to or from the site. 8. There will not be an increase in floor area. 9. The will not be a reduction in the area reserved for common area or open space. 10. There will not be a reduction in project amenities below the minimum established by code or by more than 10% as specified on the site plan. 11. There are no conditions imposed at site development review. RECORDATION REQUESTED BY: Sterling Savings Bank Portland Corporate Banking 621 SW Morrison Ave Ste 550 Portland, OR 97205 WHEN RECORDED MAIL TO: Sterling Savings Bank Loan Support PO Box 2131 Spokane, WA 99210 SEND TAX NOTICES TO: WAY W. LEE, GENERAL CONTRACTOR, INC 5210 SE 26TH AVE PORTLAND, OR 97202 SPACE ABOVE THIS LINE IS FOR RECORDER'S USE ONLY DEED OF TRUST THIS DEED OF TRUST is dated August 11, 2004, among WAY W. LEE, GENERAL CONTRACTOR, INC, AN OREGON CORPORATION ( "Grantor "); Sterling Savings Bank, whose address is Portland Corporate Banking, 621 SW Morrison Ave Ste 550, Portland, OR 97205 (referred to below sometimes as "Lender" and sometimes as "Beneficiary "); and FIDELITY NATIONAL TITLE COMPANY OF OREGON, whose address is 900 SW FIFTH AVE, PORLAND, OR 97204 (referred to below as "Trustee "). CONVEYANCE AND GRANT. For valuable consideration, represented in the Note dated August 11, 2004, in the original principal amount of $1,250,000.00, from Borrower to Lender, Grantor conveys to Trustee for the benefit of Lender as Beneficiary all of Grantor's right, title, and interest in and to the following described real property, together with all existing or subsequently erected or affixed buildings, improvements and fixtures; all easements, rights of way, and appurtenances; all water, water rights and ditch rights (including stock in utilities with ditch or irrigation rights); and all other rights, royalties, and profits relating to the real property, including without limitation all minerals, oil, gas, geothermal and similar matters, (the "Real Property ") located in WASHINGTON County, State of Oregon: See the exhibit or other description document which is attached to this Deed of Trust and made a part of this Deed of Trust as if fully set forth herein. The Real Property or its address is commonly known as 10900 SW 69TH AVE & 10935 SW 68TH PARKWAY, PORTLAND, OR 97223. The Real Property tax identification number is R279594, R279601 & P2025649 CROSS - COLLATERALIZATION. In addition to the Note, this Deed of Trust secures all obligations, debts and liabilities, plus interest thereon, of Borrower to Lender, or any one or more of them, as well as all claims by Lender against Borrower or any one or more of them, whether now existing or hereafter arising, whether related or unrelated to the purpose of the Note, whether voluntary or otherwise, whether due or not due, direct or indirect, determined or undetermined, absolute or contingent, liquidated or unliquidated whether Borrower or Grantor may be liable individually or jointly with others, whether obligated as guarantor, surety, accommodation party or otherwise, and whether recovery upon such amounts may be or hereafter may become barred by any statute of limitations, and whether the obligation to repay such amounts may be or hereafter may become otherwise unenforceable. 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 and future leases of the Property and all Rents from the Property. In addition, Grantor grants to Lender a Uniform Commercial Code security interest in the Personal Property and Rents. THIS DEED OF TRUST, INCLUDING THE ASSIGNMENT OF RENTS AND THE SECURITY INTEREST IN THE RENTS AND PERSONAL PROPERTY, IS GIVEN TO SECURE IA) PAYMENT OF THE INDEBTEDNESS AND IBl PERFORMANCE OF ANY AND ALL OBLIGATIONS UNDER THE NOTE, THE RELATED DOCUMENTS, AND THIS DEED OF TRUST. THIS DEED OF TRUST IS GIVEN AND ACCEPTED ON THE FOLLOWING TERMS: GRANTOR'S REPRESENTATIONS AND WARRANTIES. Grantor warrants that: (a) this Deed of Trust is executed at Borrower's request and not at the request of Lender; lb) Grantor has the full power, right, and authority to enter into this Deed of Trust and to hypothecate the Property; (c) the provisions of this Deed of Trust do not conflict with, or result in a default under any agreement or other instrument binding upon Grantor and do not result in a violation of any law, regulation, court decree or order applicable to Grantor; (d) Grantor has established adequate means of obtaining from Borrower on a continuing basis information about Borrower's financial condition; and (e) Lender has made no representation to Grantor about Borrower (including without limitation the creditworthiness of Borrower). GRANTOR'S WAIVERS. Grantor waives all rights or defenses arising by reason of any "one action" or "anti- deficiency" law, or any other law which may prevent Lender from bringing any action against Grantor, including a claim for deficiency to the extent Lender is otherwise entitled to a claim for deficiency, before or after Lender's commencement or completion of any foreclosure action, either judicially or by exercise of a power of sale. PAYMENT AND PERFORMANCE. Except as otherwise provided in this Deed of Trust, Borrower shall pay to Lender all Indebtedness secured by this Deed of Trust as it becomes due, and Borrower and Grantor shall strictly perform all their respective obligations under the Note, this Deed of Trust, and the Related Documents. POSSESSION AND MAINTENANCE OF THE PROPERTY. Borrower and Grantor agree that Borrower's and Grantor's possession and use of the Property shall be governed by the following provisions: Possession and Use. Until the occurrence of an Event of Default, Grantor may 111 remain in possession and control of the Property; 12) use, operate or manage the Property; and (3) collect the Rents from the Property. The following provisions relate to the use of the Property or to other limitations on the Property. THIS INSTRUMENT WILL 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 TO THE PROPERTY SHOULD CHECK WITH THE APPROPRIATE CITY OR COUNTY PLANNING DEPARTMENT TO VERIFY APPROVED USES AND TO DETERMINE ANY LIMITS ON LAWSUITS AGAINST FARMING OR FOREST PRACTICES AS DEFINED IN ORS 30.930. Duty to Maintain. Grantor shall maintain the Property in tenantable condition and promptly perform all repairs, replacements, and maintenance necessary to preserve its value. - Nuisance, Waste. Grantor shall not cause, conduct or permit any nuisance nor commit, permit, or suffer any stripping of or waste on or to the Property or any portion of the Property. Without limiting the generality of the foregoing, Grantor will not remove, or grant to any other party the right to remove, any timber, minerals (including oil and gas), coal, clay, scoria, soil, gravel or rock products without Lender's prior written consent. • Removal of Improvements. Grantor shall not demolish or remove any Improvements from the Real Property without Lender's prior written consent. As a condition to the removal of any Improvements, Lender may require Grantor to make arrangements satisfactory to Lender to replace such Improvements with Improvements of at least equal value. Lender's Right to Enter. Lender and Lender's agents and representatives may enter upon the Real Property at all reasonable times to attend to Lender's interests and to inspect the Real Property for purposes of Grantor's compliance with the terms and conditions of this Deed of Trust. Compliance with Governmental Requirements. Grantor shall promptly comply with all laws, ordinances, and regulations, now or hereafter in effect, of all governmental authorities applicable to the use or occupancy of the Property, including without limitation, the Americans With Disabilities Act. Grantor may contest in good faith any such law, ordinance, or regulation and withhold compliance during any • proceeding, including appropriate appeals, so long as 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 not jeopardized. Lender may require Grantor to post adequate security or a surety bond, DEED OF TRUST Loan No: 9001 (Continued) Page 2 • reasonably satisfactory to Lender, to protect Lender's interest. Duty to Protect. Grantor agrees neither to abandon or leave unattended the Property. Grantor shall do all other acts, in addition to those acts set forth above in this section, which from the character and use of the Property are reasonably necessary to protect and preserve the Property. • DUE ON SALE - CONSENT BY LENDER. Lender may, at Lender's option, declare immediately due and payable all sums secured by this Deed of 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 Property. A "sale or transfer" means the conveyance of Real Property or any right, title or interest in the Real Property; whether legal, beneficial or equitable; whether voluntary or involuntary; whether by outright sale, deed, installment sale contract, land contract, contract for deed, leasehold interest with a term greater than three (3) years, lease- option contract, or by sale, assignment, or transfer of any 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 Property. If any Grantor is a corporation, partnership or limited liability company, transfer also includes any change in ownership of more than twenty -five percent (25 %) of - the voting stock, partnership interests or limited liability company interests, as the case may be, of such Grantor. However, this option shall not be exercised by Lender if such exercise is prohibited by federal law or by Oregon law. TAXES AND LIENS. The following provisions relating to the taxes and liens on the Property are part of this Deed of Trust: Payment. Grantor shall pay when due land in all events prior to delinquency) all taxes, special taxes, assessments, charges (including water and sewer), fines and impositions levied against or on account of the Property, and shall pay when due all claims for work done on or for services rendered or material furnished to the Property. Grantor shall maintain the Property free of all liens having priority over or equal to the interest of Lender under this Deed of Trust, except for the lien of taxes and assessments not due and except as otherwise provided in this Deed of Trust. Right to Contest. Grantor may withhold payment of any tax, assessment, or claim in connection with a good faith dispute over the 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, Grantor shall within fifteen (15) days after the lien arises or, if a lien is filed, within fifteen 1151 days after Grantor has notice of the filing, secure the discharge of the lien, or if requested by Lender, deposit with Lender cash or a sufficient corporate surety bond or other security satisfactory to Lender in an amount sufficient to discharge the lien plus any costs and attorneys' fees, or other charges 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 satisfy any adverse judgment before enforcement against the Property. Grantor shall name Lender as an additional obligee under any surety bond furnished in the contest proceedings. Evidence of Payment. Grantor shall upon demand furnish to Lender satisfactory evidence of payment of the taxes or assessments and shall authorize the appropriate governmental official to deliver to Lender at any time a written statement of the taxes and assessments against the Property. Notice of Construction. Grantor shall notify Lender at least fifteen (151 days before any work is commenced, any services are furnished, or any materials are supplied to the Property, if any mechanic's lien, materialmen's lien, or other lien could be asserted on account of the work, services, or materials. Grantor will upon request of Lender furnish to Lender advance assurances satisfactory to Lender that Grantor can and will pay the cost of such improvements. PROPERTY DAMAGE INSURANCE. The following provisions relating to insuring the Property are a part of this Deed of Trust. Maintenance of Insurance. Grantor shall procure and maintain policies of fire insurance with standard extended coverage endorsements on a replacement basis for the full insurable value covering all Improvements on the Real Property in an amount sufficient to avoid application of any coinsurance clause, and with a standard mortgagee clause in favor of Lender. Grantor shall also procure and maintain comprehensive general liability insurance in such coverage amounts as Lender may request with Trustee and Lender being named as additional insureds in such liability insurance policies. Additionally, Grantor shall maintain such other insurance, including but not limited to hazard, business interruption, and boiler insurance, as Lender may reasonably require. Policies shall be written in form, amounts, coverages and basis reasonably acceptable to Lender and issued by a company or companies reasonably acceptable to Lender. Grantor, upon request of Lender, will deliver to Lender from time to time the policies or certificates of insurance in form satisfactory to Lender, including stipulations' that coverages will not be cancelled or diminished without at least ten (10) days prior written notice to Lender. Each insurance policy also shall include an endorsement providing that coverage in favor of Lender will not be impaired in any way by any act, omission or default of Grantor or any other person. Should the Real Property be located in an area designated by the Director of the Federal Emergency Management Agency as a special flood hazard area, Grantor agrees to obtain and maintain Federal Flood Insurance, if available, within 45 days after notice is given by Lender that the Property is located in a special flood hazard area, for the full unpaid principal balance of the loan and any prior liens on the property securing the loan, up to the maximum policy limits set under the National Flood Insurance Program, or as otherwise required by Lender, and to maintain such insurance for the term of the loan. Application of Proceeds. Grantor shall promptly notify Lender of any loss or damage to the Property. Lender may make proof of loss if Grantor fails to do to within fifteen (151 days of the casualty. Whether or not Lender's security is impaired, Lender may, at Lender's election, receive and retain the proceeds of any insurance and apply the proceeds to the reduction of the Indebtedness, payment of any lien affecting the Property, or the restoration and repair of the Property. If Lender elects to apply the proceeds to restoration and repair, Grantor shall repair or replace the damaged or destroyed Improvements in a manner satisfactory to Lender. Lender shall, upon satisfactory proof of such expenditure, pay or reimburse Grantor from the proceeds for the reasonable cost of repair or restoration if Grantor is not in default under this Deed of Trust. Any proceeds which have not been disbursed within 180 days after their receipt and which Lender has not committed to the repair or restoration of the Property shall be used first to pay any amount owing to Lender under this Deed of Trust, then to pay accrued interest, and the remainder, if any, shall be applied to the principal balance of the Indebtedness. If Lender holds any proceeds after payment in full of the Indebtedness, such proceeds shall be paid to Grantor as Grantor's interests may appear. Grantor's Report on Insurance. Upon request of Lender, however not more than once a year, Grantor shall furnish to Lender a report on each existing policy of insurance showing: It the name of the insurer; (2) the risks insured; (3) the amount of the policy; (41 the property insured, the then current replacement value of such property, and the manner of determining that value; and (51 the expiration date of the policy. Grantor shall, upon request of Lender, have an independent appraiser satisfactory to Lender determine the cash value replacement cost of the Property. LENDER'S EXPENDITURES. If any action or proceeding is commenced that would materially affect Lender's interest in the Property or if Grantor fails to comply with any provision of this Deed of Trust or any Related Documents, including but not limited to Grantor's failure to discharge or pay when due any amounts Grantor is required to discharge or pay under this Deed of Trust or any Related Documents, Lender on Grantor's • behalf may (but shall not be obligated to) take any action that Lender deems appropriate, including but not limited to discharging or paying all taxes, liens, security interests, encumbrances and other claims, at any time levied or placed on the Property and paying all costs for insuring, maintaining and preserving the Property. All such expenditures incurred or paid by Lender for such purposes will then bear interest at the rate charged under the Note from the date incurred or paid by Lender to the date of repayment by Grantor. All such expenses will become a part of the Indebtedness and, at Lender's option, will (A) be payable on demand; (B) be added to the balance of the Note and be apportioned among and be payable with any installment payments to become due during either (1) the term of any applicable insurance policy; or (21 the remaining term of the Note; or (C) be treated as a balloon payment which will be due and payable at the Note's maturity. The Deed of Trust also will secure payment of these amounts. Such right shall be in addition to all other rights and remedies to which Lender may be entitled upon Default. • WARRANTY; DEFENSE OF TITLE. The following provisions relating to ownership of the Property are a part of this Deed of Trust: Title. Grantor warrants that: la) Grantor holds good and marketable title of record to the Property in fee simple, free and clear of all liens and encumbrances other than those set forth in the Real Property description or in any title insurance policy, title report, or final title opinion issued in favor of, and accepted by, Lender in connection with this Deed of Trust, and lb) Grantor has the full right, power, and authority to execute and deliver this Deed of Trust to Lender. Defense of Title. Subject to the exception in the paragraph above, Grantor warrants and will forever defend the title to the Property against the lawful claims of all persons. In the event any action or proceeding is commenced that questions Grantor's title or the interest of Trustee or Lender under this Deed of Trust, Grantor shall defend the action at Grantor's expense. Grantor may be the nominal party in such proceeding, but Lender shall be entitled to participate in the proceeding and to be represented in the proceeding by counsel of Lender's own choice, and Grantor will deliver, or cause to be delivered, to Lender such instruments as Lender may request from time to time to permit such participation. • Compliance With Laws. Grantor warrants that the Property and Grantor's use of the Property complies with all existing applicable laws, ordinances, and regulations of governmental authorities. DEED OF TRUST • Loan No: 9001 (Continued) Page 3 Survival of Representations and Warranties. All representations, warranties, and agreements made by Grantor in this Deed of Trust shall survive the execution and delivery of this Deed of Trust, shall be continuing in nature, and shall remain in full force and effect until such time as Borrower's Indebtedness shall be paid in full. CONDEMNATION. The following provisions relating to condemnation proceedings are a part of this Deed of Trust: • Proceedings. If any proceeding in condemnation is filed, Grantor shall promptly notify Lender in writing, and Grantor shall promptly take such steps as may be necessary to defend the action and obtain the award. Grantor may be the nominal party in such proceeding, but Lender shall be entitled to participate in the proceeding and to be represented in the proceeding by counsel of its own choice, and Grantor will deliver or cause to be delivered to Lender such instruments and documentation as may be requested by Lender from time to time to permit such participation. Application of Net Proceeds. If all or any part of the Property is condemned by eminent domain proceedings or by any proceeding or purchase in lieu of condemnation, Lender may at its election require that all or any portion of the net proceeds of the award be applied to the Indebtedness or the repair or restoration of the Property. The net proceeds of the award shall mean the award after payment of all reasonable costs, expenses, and attorneys' fees incurred by Trustee or Lender in connection with the condemnation. IMPOSITION OF TAXES. FEES AND CHARGES BY GOVERNMENTAL AUTHORITIES. The following provisions relating to governmental taxes, fees and charges are a part of this Deed of Trust: Current Taxes, Fees and Charges. Upon request by Lender, Grantor shall execute such documents in addition to this Deed of Trust and take whatever other action is requested by Lender to perfect and continue Lender's lien on the Real Property. Grantor shall reimburse Lender for all taxes, as described below, together with all expenses incurred in recording, perfecting or continuing this Deed of Trust, including without limitation all taxes, fees, documentary stamps, and other charges for recording or registering this Deed of Trust. • Taxes. The following shall constitute taxes to which this section applies: 11) a specific tax upon this type of Deed of Trust or upon all or any part of the Indebtedness secured by this Deed of Trust; (2) a specific tax on Borrower which Borrower is authorized or required to deduct from payments on the Indebtedness secured by this type of Deed of Trust; (31 a tax on this type of Deed of Trust chargeable against the Lender or the holder of the Note; and (4) a specific tax on all or any portion of the Indebtedness or on payments of principal and interest made by Borrower. Subsequent Taxes. If any tax to which this section applies is enacted subsequent to the date of this Deed of Trust, this event shall have the same effect as an Event of Default, and Lender may exercise any or all of its available remedies for an Event of Default as provided below unless Grantor either (1) pays the tax before it becomes delinquent, or (21 contests the tax as provided above in the Taxes and Liens section and deposits with Lender cash or a sufficient corporate surety bond or other security satisfactory to Lender. SECURITY AGREEMENT; FINANCING STATEMENTS. The following provisions relating to this Deed of Trust as a security agreement are a part of this Deed of Trust: Security Agreement. This instrument shall constitute a Security Agreement to the extent any of the Property constitutes fixtures, and Lender shall have all of the rights of a secured party under the Uniform Commercial Code as amended from time to time. Security Interest. Upon request by Lender, Grantor shall take whatever action is requested by Lender to perfect and continue Lender's security interest in the Rents and Personal Property. In addition to recording this Deed of Trust in the real property records, Lender may, at any time and without further authorization from Grantor, file executed counterparts, copies or reproductions of this Deed of Trust as a financing statement. Grantor shall reimburse Lender for all expenses incurred in perfecting or continuing this security interest. Upon default, Grantor shall not remove, sever or detach the Personal Property from the Property. Upon default, Grantor shall assemble any Personal Property not affixed to the Property in a manner and at a place reasonably convenient to Grantor and Lender and make it available to Lender within three (3) days after receipt of written demand from Lender to the extent permitted by applicable law. Addresses. The mailing addresses of Grantor (debtor) and Lender (secured party) from which information concerning the security interest granted by this Deed of Trust may be obtained (each as required by the Uniform Commercial Code) are as stated on the first page of this Deed of Trust. FURTHER ASSURANCES; ATTORNEY -IN -FACT. The following provisions relating to further assurances and attorney -in -fact are a part of this Deed of Trust: Further Assurances. At any time, and from time to time, upon request of Lender, Grantor will make, execute and deliver, or will cause to be made, executed or delivered, to Lender or to Lender's designee, and when requested by Lender, cause to be filed, recorded, refiled, or rerecorded, as the case may be, at such times and in such offices and places as Lender may deem appropriate, any and all such mortgages, deeds of trust, security deeds, security agreements, financing statements, continuation statements, instruments of further assurance, certificates, and other documents as may, in the sole opinion of Lender, be necessary or desirable in order to effectuate, complete, perfect, continue, or preserve (11 Borrower's and Grantor's obligations under the Note, this Deed of Trust, and the Related Documents, and (21 the liens and security interests created by this Deed of Trust as first and prior liens on the Property, whether now owned or hereafter acquired by Grantor. Unless prohibited by law or Lender agrees to the contrary in writing, Grantor shall reimburse Lender for all costs and expenses incurred in connection with the matters referred to in this paragraph. Attorney -in -Fact. If Grantor fails to do any of the things referred to in the preceding paragraph, Lender may do so for and in the name of Grantor and at Grantor's expense. For such purposes, Grantor hereby irrevocably appoints Lender as Grantor's attorney -in -fact for the purpose of making, executing, delivering, filing, recording, and doing all other things as may be necessary or desirable, in Lender's sole opinion, to accomplish the matters referred to in the preceding paragraph. FULL PERFORMANCE. If Borrower pays all the Indebtedness when due, and otherwise performs all the obligations imposed upon Grantor under this Deed of Trust, Lender shall execute and deliver to Trustee a request for full reconveyance and shall execute and deliver to Grantor suitable statements of termination of any financing statement on file evidencing Lender's security interest in the Rents and the Personal Property. Any reconveyance fee required by law shall be paid by Grantor, if permitted by applicable law. EVENTS OF DEFAULT. Each of the following, at Lender's option, shall constitute an Event of Default under this Deed of Trust: Payment Default. Borrower fails to make any payment when due under the Indebtedness. Other Defaults. Borrower or Grantor fails to comply with or to perform any other term, obligation, covenant or condition contained in this Deed of Trust or in any of the Related Documents or to comply with or to perform any term, obligation, covenant or condition contained in any other agreement between Lender and Borrower or Grantor. Compliance Default. Failure to comply with any other term, obligation, covenant or condition contained in this Deed of Trust, the Note or in any of the Related Documents. Default on Other Payments. Failure of Grantor within the time required by this Deed of Trust to make any payment for taxes or insurance, or any other payment necessary to prevent filing of or to effect discharge of any lien. Environmental Default. Failure of any party to comply with or perform when due any term, obligation, covenant or condition contained in any environmental agreement executed in connection with the Property. Default in Favor of Third Parties. Should Borrower or any Grantor default under any loan, extension of credit, security agreement, purchase or sales agreement, or any other agreement, in favor of any other creditor or person that may materially affect any of Grantor's property or Borrower's or any Grantor's ability to repay the Indebtedness or perform their respective obligations under this Deed of Trust or any of the Related Documents. False Statements. Any warranty, representation or statement made or furnished to Lender by Borrower or Grantor or on Borrower's or Grantor's behalf under this Deed of Trust or the Related Documents is false or misleading in any material respect, either now or at the time made or furnished or becomes false or misleading at any time thereafter. Defective Collateralization. This Deed of Trust or any of the Related Documents ceases to be in full force and effect (including failure of any collateral document to create a valid and perfected security interest or lien) at any time and for any reason. Insolvency. The dissolution or termination of Borrower's or Grantor's existence as a going business, the insolvency of Borrower or Grantor, the appointment of a receiver for any part of Borrower's or Grantor's property, any assignment for the benefit of creditors, any type of creditor workout, or the commencement of any proceeding under any bankruptcy or insolvency laws by or against Borrower or Grantor. Creditor or Forfeiture Proceedings. Commencement of foreclosure or forfeiture proceedings, whether by judicial proceeding, self -help, • DEED OF TRUST Loan No: 9001 (Continued) Page 4 repossession or any other method, by any creditor of Borrower or Grantor or by any governmental agency against any property securing the Indebtedness. This includes a garnishment of any of Borrower's or Grantor's accounts, including deposit accounts, with Lender. However, this Event of Default shall not apply if there is a good faith dispute by Borrower or Grantor as to the validity or reasonableness of the claim which is the basis of the creditor or forfeiture proceeding and if Borrower or Grantor gives Lender written notice of the creditor or forfeiture proceeding and deposits with Lender monies or a surety bond for the creditor or forfeiture proceeding, in an amount determined by Lender, in its sole discretion, as being an adequate reserve or bond for the dispute. • Breach of Other Agreement. Any breach by Borrower or Grantor under the terms of any other agreement between Borrower or Grantor and Lender that is not remedied within any grace period provided therein, including without limitation any agreement concerning any indebtedness or other obligation of Borrower or Grantor to Lender, whether existing now or later. Events Affecting Guarantor. Any of the preceding events occurs with respect to any guarantor, endorser, surety, or accommodation party of any of the Indebtedness or any guarantor, endorser, surety, or accommodation party dies or becomes incompetent, or revokes or disputes the validity of, or liability under, any Guaranty of the Indebtedness. In the event of a death, Lender, at its option, may, but shall not be required to, permit the guarantor's estate to assume unconditionally the obligations arising under the guaranty in a manner satisfactory to Lender, and, in doing so, cure any Event of Default. Adverse Change. A material adverse change occurs in Borrower's or Grantor's financial condition, or Lender believes the prospect of payment or performance of the Indebtedness is impaired. Insecurity. Lender in good faith believes itself insecure. Right to Cure. If any default, other than a default in payment is curable and if Grantor has not been given a notice of a breach of the same provision of this Deed of Trust within the preceding twelve (12) months, it may be cured if Grantor, after receiving written notice from Lender demanding cure of such default: (1) cures the default within fifteen (151 days; or 121 if the cure requires more than fifteen (15) days, immediately initiates steps which Lender deems in Lender's sole discretion to be sufficient to cure the default and thereafter continues and completes all reasonable and necessary steps sufficient to produce compliance as soon as reasonably practical. RIGHTS AND REMEDIES ON DEFAULT. If an Event of Default occurs under this Deed of Trust, at any time thereafter, Trustee or Lender may exercise any one or more of the following rights and remedies: Election of Remedies. Election by Lender to pursue any remedy shall not exclude pursuit of any other remedy, and an election to make expenditures or to take action to perform an obligation of Grantor under this Deed of Trust, after Grantor's failure to perform, shall not affect Lender's right to declare a default and exercise its remedies. Accelerate Indebtedness. Lender shall have the right at its option without notice to Borrower or Grantor to declare the entire Indebtedness immediately due and payable, including any prepayment penalty which Borrower would be required to pay. Foreclosure. With respect to all or any part of the Real Property, the Trustee shall have the right to foreclose by notice and sale, and Lender shall have the right to foreclose by judicial foreclosure, in either case in accordance with and to the full extent provided by applicable law. If this Deed of Trust is foreclosed by judicial foreclosure, Lender will be entitled to a judgment which will provide that if the foreclosure sale proceeds are insufficient to satisfy the judgment, execution may issue for the amount of the unpaid balance of the judgment. UCC Remedies. With respect to all or any part of the Personal Property, Lender shall have all the rights and remedies of a secured party under the Uniform Commercial Code. Collect Rents. Lender shall have the right, without notice to Borrower or Grantor to take possession of and manage the Property and collect the Rents, including amounts past due and unpaid, and apply the net proceeds, over and above Lender's costs, against the • Indebtedness. In furtherance of this right, Lender may require any tenant or other user of the Property to make payments of rent or use fees directly to Lender. If the Rents are collected by Lender, then Grantor irrevocably designates Lender as Grantor's attorney -in -fact to endorse instruments received in payment thereof in the name of Grantor and to negotiate the same and collect the proceeds. Payments by tenants or other users to Lender in response to Lender's demand shall satisfy the obligations for which the payments are made, whether or not any proper grounds for the demand existed. Lender may exercise its rights under this subparagraph either in person, by agent, or through a receiver. • Appoint Receiver. Lender shall have the right to have a receiver appointed to take possession of all or any part of the Property, with the power to protect and preserve the Property, to operate the Property preceding foreclosure or sale, and to collect the Rents from the Property and apply the proceeds, over and above the cost of the receivership, against the Indebtedness. The receiver may serve without bond if permitted by law. Lender's right to the appointment of a receiver shall exist whether or not the apparent value of the Property exceeds the Indebtedness by a substantial amount. Employment by Lender shall not disqualify a person from serving as a receiver. Tenancy at Sufferance. If Grantor remains in possession of the Property after the Property is sold as provided above or Lender otherwise becomes entitled to possession of the Property upon default of Grantor, Grantor shall become a tenant at sufferance of Lender or the purchaser of the Property and shall, at Lender's option, either (11 pay a reasonable rental for the use of the Property, or (21 vacate the Property immediately upon the demand of Lender. Other Remedies. Trustee or Lender shall have any other right or remedy provided in this Deed of Trust or the Note or by law. Notice of Sale. Lender shall give Grantor reasonable notice of the time and place of any public sale of the Personal Property or of the time after which any private sale or other intended disposition of the Personal Property is to be made. Reasonable notice shall mean notice given at least fifteen 1151 days before the time of the sale or disposition. Any sale of the Personal Property may be made in conjunction with any sale of the Real Property. Sale of the Property. To the extent permitted by applicable law, Borrower and Grantor hereby waives any and all rights to have the Property marshalled. In exercising its rights and remedies, the Trustee or Lender shall be free to sell all or any part of the Property together or separately, in one sale or by separate sales. Lender shall be entitled to bid at any public sale on all or any portion of the Property. Attorneys' Fees; Expenses. If Lender institutes any suit or action to enforce any of the terms of this Deed of Trust, Lender shall be entitled to recover such sum as the court may adjudge reasonable as attorneys' fees at trial and upon any appeal. Whether or not any court action is involved, and to the extent not prohibited by law, all reasonable expenses Lender incurs that in Lender's opinion are necessary at any time for the protection of its interest or the enforcement of its rights shall become a part of the Indebtedness payable on demand and shall bear interest at the Note rate from the date of the expenditure until repaid. Expenses covered by this paragraph include, without limitation, however subject to any limits under applicable law, Lender's attorneys' fees and Lender's legal expenses, whether or not there is a lawsuit, including attorneys' fees and expenses for bankruptcy proceedings (including efforts to modify or vacate any automatic stay or injunction), appeals, and any anticipated post - judgment collection services, the cost of searching records, obtaining title reports (including foreclosure reports), surveyors' reports, and appraisal fees, title insurance, and fees for the Trustee, to the extent permitted by applicable law. Grantor also will pay any court costs, in addition to all other sums provided by law. Rights of Trustee. Trustee shall have all of the rights and duties of Lender as set forth in this section. POWERS AND OBLIGATIONS OF TRUSTEE. The following provisions relating to the powers and obligations of Trustee are part of this Deed of Trust: • Powers of Trustee. In addition to all powers of Trustee arising as a matter of law, Trustee shall have the power to take the following actions with respect to the Property upon the written request of Lender and Grantor: (al join in preparing and filing a map or plat of the Real Property, including the dedication of streets or other rights to the public; (b) join in granting any easement or creating any restriction on the Real Property; and 1c) join in any subordination or other agreement affecting this Deed of Trust or the interest of Lender under this Deed of Trust. Obligations to Notify. Trustee shall not be obligated to notify any other party of a pending sale under any other trust deed or lien, or of any action or proceeding in which Grantor, Lender, or Trustee shell be a party, unless the action or proceeding is brought by Trustee. Trustee. Trustee shall meet all qualifications required for Trustee under applicable law. In addition to the rights and remedies set forth above, with respect to all or any part of the Property, the Trustee shall have the right to foreclose by notice and sale, and Lender shall have the right to foreclose by judicial foreclosure, in either case in accordance with and to the full extent provided by applicable law. Successor Trustee. Lender, at Lender's option, may from time to time appoint a successor Trustee to any Trustee appointed under this Deed of Trust by an instrument executed and acknowledged by Lender and recorded in the office of the recorder of WASHINGTON County, State of Oregon. The instrument shall contain, in addition to all other matters required by state law, the names of the original Lender, DEED OF TRUST Loan No: 9001 (Continued) Page 5 Trustee, and Grantor, the book and page where this Deed of Trust is recorded, and the name and address of the successor trustee, and the instrument shall be executed and acknowledged by Lender or its successors in interest. The successor trustee, without conveyance of the Property, shall succeed to all the title, power, and duties conferred upon the Trustee in this Deed of Trust and by applicable law. This procedure for substitution of Trustee shall govern to the exclusion of all other provisions for substitution. NOTICES. Any notice required to be given under this Deed of Trust, including without limitation any notice of default and any notice of sale shall be given in writing, and shall be effective when actually delivered, when actually received by telefacsimile (unless otherwise required by law), when deposited with a nationally recognized overnight courier, or, if mailed, when deposited in the United States mail, as first class, certified or registered mail postage prepaid, directed to the addresses shown near the beginning of this Deed of Trust. All copies of notices of foreclosure from the holder of any lien which has priority over this Deed of Trust shall be sent to Lender's address, as shown near the beginning of this Deed of Trust. Any party may change its address for notices under this Deed of Trust by giving formal written notice to the other parties, specifying that the purpose of the notice is to change the party's address. For notice purposes, Grantor agrees to keep Lender informed at all times of Grantor's current address. Unless otherwise provided or required by law, if there is more than one Grantor, any notice given by Lender to any Grantor is deemed to be notice given to all Grantors. FRAUDS DISCLOSURE. UNDER OREGON LAW, MOST AGREEMENTS, PROMISES AND COMMITMENTS MADE BY US (LENDER) AFTER OCTOBER 3, 1989 CONCERNING LOANS AND OTHER CREDIT EXTENSIONS WHICH ARE NOT FOR PERSONAL, FAMILY OR HOUSEHOLD PURPOSES OR SECURED SOLELY BY THE BORROWERS RESIDENCE MUST BE IN WRITING, EXPRESS CONSIDERATION AND BE SIGNED BY US TO BE ENFORCEABLE. MISCELLANEOUS PROVISIONS. The following miscellaneous provisions are a part of this Deed of Trust: Amendments. This Deed of Trust, together with any Related Documents, constitutes the entire understanding and agreement of the parties as to the matters set forth in this Deed of Trust. No alteration of or amendment to this Deed of Trust 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. Annual Reports. If the Property is used for purposes other than Grantor's residence, Grantor shall furnish to Lender, upon request, a certified statement of net operating income received from the Property during Grantor's previous fiscal year in such form and detail as Lender shall require. "Net operating income" shall mean all cash receipts from the Property less all cash expenditures made in connection with the operation of the Property. • Caption Headings. Caption headings in this Deed of Trust are for convenience purposes only and are not to be used to interpret or define the provisions of this Deed of Trust. Merger. There shall be no merger of the interest or estate created by this Deed of Trust with any other interest or estate in the Property at any time held by or for the benefit of Lender in any capacity, without the written consent of Lender. Governing Law. This Deed of Trust will be governed by, construed and enforced in accordance with federal law and the laws of the State of Oregon. This Deed of Trust has been accepted by Lender in the State of Oregon. Choice of Venue. If there is a lawsuit, Grantor agrees upon Lender's request to submit to the jurisdiction of the courts of Multnomah County, State of Oregon. Joint and Several Liability. All obligations of Borrower and Grantor under this Deed of Trust shall be joint and several, and all references to Grantor shall mean each and every Grantor, and all references to Borrower shall mean each and every Borrower. This means that each Borrower and Grantor signing below is responsible for all obligations in this Deed of Trust. Where any one or more of the parties is e corporation, partnership, limited liability company or similar entity, it is not necessary for Lender to inquire into the powers of any of the officers, directors, partners, members, or other agents acting or purporting to act on the entity's behalf, and any obligations made or created in reliance upon the professed exercise of such powers shall be guaranteed under this Deed of Trust. No Waiver by Lender. Lender shall not be deemed to have waived any rights under this Deed of Trust 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 Deed of Trust 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 Deed of Trust. No prior waiver by Lender, nor any course of dealing between Lender and Grantor, shall constitute a waiver of any of Lender's rights or of any of Grantor's obligations as to any future transactions. Whenever the consent of Lender is required under this Deed of Trust, 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 Deed of Trust 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 Deed of Trust. Unless otherwise required by law, the illegality, invalidity, or unenforceability of any provision of this Deed of Trust shall not affect the legality, validity or enforceability of any other provision of this Deed of Trust. Successors and Assigns. Subject to any limitations stated in this Deed of Trust on transfer of Grantor's interest, this Deed of Trust shall be binding upon and inure to the benefit of the parties, their successors and assigns. If ownership of the Property becomes vested in a person other than Grantor, Lender, without notice to Grantor, may deal with Grantor's successors with reference to this Deed of Trust and the Indebtedness by way of forbearance or extension without releasing Grantor from the obligations of this Deed of Trust or liability under the Indebtedness. Time is of the Essence. Time is of the essence in the performance of this Deed of Trust. Waive Jury. All parties to this Deed of Trust hereby waive the right to any jury trial in any action, proceeding, or counterclaim brought by any party against any other party. Waiver of Homestead Exemption. Grantor hereby releases and waives all rights and benefits of the homestead exemption laws of the State of Oregon as to all Indebtedness secured by this Deed of Trust. Commercial Deed of Trust. Grantor agrees with Lender that this Deed of Trust is a commercial deed of trust and that Grantor will not change the use of the Property without Lender's prior written consent. DEFINITIONS. The following capitalized words and terms shall have the following meanings when used in this Deed of Trust. 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 Deed of Trust shall have the meanings attributed to such terms in the Uniform Commercial Code: Beneficiary. The word "Beneficiary" means Sterling Savings Bank, and its successors and assigns. Borrower. The word "Borrower" means WAY W LEE and includes all co- signers and co- makers signing the Note. Deed of Trust. The words "Deed of Trust" mean this Deed of Trust among Grantor, Lender, and Trustee, and includes without limitation all assignment and security interest provisions relating to the Personal Property and Rents. • Default. The word. "Default" means the Default set forth in this Deed of Trust in the section titled "Default ". Event of Default. The words "Event of Default" mean any of the events of default set forth in this Deed of Trust in the events of default section of this Deed of Trust. Grantor. The word "Grantor" means WAY W. LEE, GENERAL CONTRACTOR, INC. Guaranty. The word "Guaranty" means the guaranty from guarantor, endorser, surety, or accommodation party to Lender, including without limitation a guaranty of all or part of the Note. Improvements. The word "Improvements" means all existing and future improvements, buildings, structures, mobile homes affixed on the Real Property, facilities, additions, replacements and other construction on the Real Property. Indebtedness. The word "Indebtedness" means all principal, interest, and other amounts, costs and expenses payable under the Note or Related Documents, together with all renewals of, extensions of, modifications of, consolidations of and substitutions for the Note or Related Documents and any amounts expended or advanced by Lender to discharge Grantor's obligations or expenses incurred by Trustee or Lender to enforce Grantor's obligations under this Deed of Trust, together with interest on such amounts as provided in this Deed of DEED OF TRUST Loan No: 9001 (Continued) Page 6 Trust. Specifically, without limitation, Indebtedness includes all amounts that may be indirectly secured by the Cross- Collaterelization provision of this Deed of Trust. Lender. The word "Lender" means Sterling Savings Bank, its successors and assigns. Note. The word "Note" means the promissory note dated August 11, 2004, in the original principal amount of $1,250,000.00 from Borrower to Lender, together with all renewals of, extensions of, modifications of, refinancings of, consolidations of, and substitutions for the promissory note or agreement. The maturity date of the Note is August 25, 2014. Personal Property. The words "Personal Property" mean all equipment, fixtures, and other articles of personal property now or hereafter owned by Grantor, and now or hereafter attached or affixed to the Real Property; together with all 'accessions, parts, and additions to, all replacements of, and all substitutions for, any of such property; and together with all proceeds (including without limitation all insurance proceeds and refunds of premiums) from any sale or other disposition of the Property. " - Property. The word "Property" means collectively the Real Property and the Personal Property. Real Property. The words "Real Property" mean the real property, interests and rights, as further described in this Deed of Trust. 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 Indebtedness. Rents. The word "Rents" means all present and future rents, revenues, income, issues, royalties, profits, and other benefits derived from the Property. Trustee. The word "Trustee" means FIDELITY NATIONAL TITLE COMPANY OF OREGON, whose address is 900 SW FIFTH AVE, PORLAND, OR 97204 and any substitute or successor trustees. GRANTOR ACKNOWLEDGES HAVING READ ALL THE PROVISIONS OF THIS DEED OF TRUST, AND GRANTOR AGREES TO ITS TERMS. GRANTOR: WAY W. LEE, GENERAL CONTRACTOR, INC By WAY W LEE, President of WAY W. LEE, GENERAL CONTRACTOR, INC CORPORATE ACKNOWLEDGMENT STATE OF I SS COUNTY OF On this day of , 20 , before me, the undersigned Notary Public, personally appeared WAY W LEE, President of WAY W. LEE, GENERAL CONTRACTOR, INC, and known to me to be an authorized agent of the corporation that executed the Deed of Trust and acknowledged the Deed of Trust to be the free and voluntary act and deed of the corporation, by authority of its Bylaws or by resolution of its board of directors, for the uses and purposes therein mentioned, and on oath stated that he or she is authorized to execute this Deed of Trust and in fact executed the Deed of Trust on behalf of the corporation. By Residing at Notary Public in and for the State of My commission expires REQUEST FOR FULL RECONVEYANCE (To be used only when obligations have been paid in full) To: , Trustee The undersigned is the legal owner and holder of all Indebtedness secured by this Deed of Trust. All sums secured by this Deed of Trust have been fully paid and satisfied. You are hereby directed, upon payment to you of any sums owing to you under the terms of this Deed of Trust or pursuant to any applicable statute, to cancel the Note secured by this Deed of Trust (which is delivered to you together with this Deed of Trust), and to reconvey, without warranty, to the parties designated by the terms of this Deed of Trust, the estate now held by you under this Deed of Trust. Please mail the reconveyance and Related Documents to: Date: Beneficiary: By: Its: • LASER 550 L."dw. v ". 5.2..00.00] c X .d..d ,xndM S0 055.. m...0L2. 200X. Aa Riynu R.rr..d. . OR C.LCriuPtLGOI.,C 7X .],01 PR 11 • Order No. 10- 1110551 -28 EXHIBIT "ONE" PARCEL I: Lot 1, WAY LEE, in the City of Tigard, Washington County, Oregon. Excepting therefrom the following described tract conveyed to PFEDCO, Inc., an Oregon corporation, by deed recorded February 7, 1980, Fee No. 80004362: Beginning at the Southeast corner of said Lot 1; thence North 00 °26'47" East 658.08 feet to a point on the South line of that parcel conveyed to Way W. Lee General Contractor, Inc., an Oregon corporation, by Deed recorded February 26, 1975, in Book 1012, Page 172, Washington County Records; thence West, along said South line, to its intersection with the West line of said Lot 1; thence South 00 °42'09" West 659.31 feet to the Southwest corner of said lot; thence South 89 °58'55" East 330.16 feet to the point of beginning. Also excepting therefrom any portion lying East of the Westerly right of way of SW 68th Parkway, as described in document recorded April 23, 2004, Fee No. 2004- 043373. PARCEL II: A parcel of land located in the Southeast one- quarter of the Northeast one- quarter of Section 36, Township 1 South, Range 1 West of the Willamette Meridian, in the City of Tigard, Washington County, Oregon, being a portion of vacated SW 69th Avenue, as recorded in Document No. 87061377, and part of Lot 2, WAY LEE, a duly recorded plat in Washington County Plat Records, being further described as follows: Beginning at a 5/8 inch iron marking the Northeast corner of said Lot 2; thence South 00°38'07" East, along the East line of said Lot 2, a distance of 398.36 feet to a 5/8 by 30 inch iron rebar with a yellow plastic cap inscribed "Hertel PLS 1896 "; thence North 89 °45'56" West, parallel to the South line of Tract "B" of said WAY LEE plat, a distance of 107.84 feet to a point on the East right of way line of SW 69th Avenue (SW 68th Parkway), as surveyed in Washington County Survey No. 22,111, said point bears North 89°45'56" West 5.73 feet from a 5/8 by 30 inch iron rebar with a yellow plastic cap inscribed "Hertel PLS 1896 "; thence North 29 °01'10" West, along said right of way, a distance of 84.66 feet to a 5/8 inch iron rod on the Westerly boundary of said Lot 2; thence, continuing along said boundary, along the arc of a curve to the right, said curve having a radius of 171.00 feet, arc length of 145.62 feet, central angle of 48 °47'36 ", a chord bearing of North 04 °37'02" West, and a chord length of 141.26 feet; thence, along the arc of a curve to the left, said curve having a radius of 225.00 feet, arc length of 122.50 feet, central angle of 31 a chord bearing of North 04 °07'08" East, and a chord length of 121.00 feet to the Northwest corner of said Lot 2; thence North 72 °20'50" East a distance of 40.03 feet; thence, along the arc of a curve to the left, said curve having a radius of 479.50 feet, arc length of 120.48 feet, central angle of 14 °23'45 ", a chord bearing of North 65 °08'57" East, and a chord length of 120.16 feet to the true point of beginning. 2