Loading...
HomeMy WebLinkAboutLakeview May 2006 ExhibitRECORDATION REQUESTED BY: IDAHO INDEPENDENT BANK MERIDIAN OFFICE 113 EAST IDAHO AVENUE MERIDIAN, ID 83642 WHEN RECORDED MAIL T0: IDAHO INDEPENDENT BANK MERIDIAN OFFICE 113 EAST IDAHO AVENUE MERIDIAN, ID 83642 SEND TAX NOTICES T0: LAKEVIEW MERIDIAN INVESTORS, LLC R.R. DAVIS PROPERTIES, INC. 4200 W. TALAMORE BLVD. MERIDIAN ID 83642 SPACE ABOVE THIS LINE IS FOR RECORDER'S USE ONLY LEASEHOLD DEED OF TRUST MAXIMUM LIEN. The lien of this Deed of Trust shall not exceed at any one time 5649,759.84. THIS DEED OF TRUST is dated May 17, 2006, among LAKEVIEW MERIDIAN INVESTORS, LLC AND R.R. DAVIS PROPERTIES, INC., whose address is 4200 W. TALAMORE BLVD., MERIDIAN, ID 83642 ("Grantor"1; IDAHO INDEPENDENT BANK, whose address is MERIDIAN OFFICE, 713 EAST IDAHO AVENUE, MERIDIAN, ID 83642 (referred to below sometimes as "Lender" and sometimes as "Beneficiary"); and PIONEER TITLE COMPANY OF ADA COUNTY, whose address is $95'1 W. RIFLEMAN AVENUE, BOISE, ID 83704 (referred to below as "Trustee" 1. CONVEYANCE AND GRANT. For valuable consideration, Grantor does hereby irrevocably grant, bargain, sell and convey in trust, with power of sale, to Trustee for the benefit of Lender as Beneficiary, all of Grantor's right, title, and interest in, to and under the Lease described below of 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 any ri hts Grantor later acquires in the fee simple title to the land, subject to the Lease, and all minerals, oil, gas, geothermal and similar matters, (t~1e "Real Property") IOCated In ADA County, State of Idaho: See EXHIBIT "A", which is attached to the Deed of Trust and made a part of this Deed of Trust as if fully set forth herein. THIS DEED OF TRUST INCLUDES ALL OF THE LESSEE'S INTEREST IN THAT PROPERTY DESCRIBED ABOVE UNDER THE LEASE AGREEMENT ORIGINALLY DATED MAY 17, 2005 BETWEEN THE CITY OF MERIDIAN AS LESSOR AND LAKEVIEW MERIDIAN INVESTORS, LLC AND R.R. DAVIS PROPERTIES, INC. AS LESSEES. The Real Property or its address is commonly known as 4200 W. TALAMORE BLVD., MERIDIAN, ID 83642. CROSS-COLLATERALIZATION. In addition to the Note, this Deed of Trust secures all obligations, debts and liabilities, plus interest thereon, of Grantor to Lender, or any one or more of them, as well as all claims by Lender against Grantor 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 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 Dead 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 (A) PAYMENT OF THE INDEBTEDNESS AND (B) PERFORMANCE OF ANY AND ALL OBLIGATIONS UNDER THE NOTE, THE RELAYED DOCUMENTS, AND THIS DEED OF TRUST. THIS DEED OF TRUST IS GIVEN AND ACCEPTED ON THE FOLLOWING TERMS: PAYMENT AND PERFORMANCE. Except as otherwise provided in this Deed of Trust, Grantor shall pay to Lender all amounts secured by this peed of Trust as they become due, and shall strictly and in a timely manner perform all of Grantor's obligations under the Note, this Deed of Trust, and the Related Documents. POSSESSION AND MAINTENANCE OF THE PROPERTY. Grantor agrees that 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 (1) remain in possession and control of the Property; (2) 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. THE REAL PROPERTY EITHER IS NOT MORE THAN FORTY (4Q) ACRES IN AREA OR IS LOCATED WITHIN AN INCORPORATED CITY OR VILLAGE. Duty to Maintain. Grantor shall maintain the Property in tenantable condition and promptly perform all repairs, replacements, and maintenance necessary to preserve its value. Compliance With Environmental Laws. Grantor represents and warrants to Lender that: (1) During the period of Grantvr's leasehold interest in the Property, there has been no use, generation, manufacture, storage, treatment, disposal, release or threatened release of any Hazardous Substance by any person on, under, about or from the Property; (2) Grantor has no knowledge of, or reason to believe that there has bean, except as previously disclosed to and acknowledged by Lender in writing, (a) any breach or violation of any Environmental Laws, (b) any use, generation, manufacture, storage, treatment, disposal, release ar threatened release of any Hazardous Substance on, under, about or from the Property by any prior owners or occupants of the Property, or (c) any actual or threatened litigation or claims of any kind by any person relating to such matters; and (3) Except as previously disclosed to and acknowledged by Lender in writing, (a) neither Grantor nor any tenant, contractor, agent or other authorized user of the Property shall use, generate, manufacture, store, treat, dispose of or release any Hazardous Substance on, under, about or from the Property; and (b) any such activity shall be conducted in compliance with all applicable federal, state, and local laws, regulations and ordinances, including without limitation all Environmental Laws. Grantor authorizes Lender and its agents to enter upon the Property to make such inspections and tests, at Grantor's expense, as Lender may deem appropriate to determine compliance of the Property with this section of the Deed of Trust. Any inspections or tests made by Lender shall be for Lender's purposes only and shall not be construed to create any responsibility or liability on the part of Lender to Grantor or to any other person. The representations and warranties contained herein are based on Grantor's due diligence in investigating the Property for Hazardous Substances. Grantor hereby ll) releases and waives any future claims against Lender for indemnity or contribution in the event Grantor becomes liable for cleanup or other costs under any such laws; and (2) agrees to indemnify and hold harmless Lender against any and all claims, losses, liabilities, damages, penalties, and expenses which Lender may directly or indirectly sustain or suffer resulting from a breach of this section of the bead of Trust or as a consequence of any use, generation, manufacture, storage, disposal, release or threatened release occurring prior to Grantor's ownership or interest in the Property, whether or not the same was or should have been known to Grantor. The provisions of this section of the Deed of Trust, including the obligation to indemnify, shall survive the payment of the Indebtedness and the satisfaction and reconveyance of the lien of this peed of Trust and shall not ba affected DEED OF TRUST Loan No: 5590258 (Continued) Page 3 hazard, business interruption, and boiler insurance, as Lender may reasonably require. Policies shall 6e 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 so within fifteen (15) 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 ar reimburse Grantor from the proceeds for the reasonable cost of repair or restoration if Grantor is not in default under this Daed 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, than 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 Lander a report on each existing policy of insurance showing: (1) the name of the insurer; (2) the risks insured; (3) the amount of the policy; (4) the property insured, the then current replacement value of such property, and the manner of determining that value; and (5) 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, Lander 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 6y Lender to the date of repayment 6y Grantor. All such expenses will become a part of the Indebtedness and, at Lender's option, will (A) 6e payable on demand; (B) 6e added to the balance of the Note and be apportioned among and 6e payable with any installment payments to become due during either (1) the term of any applicable insurance policy; or (2) 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 Daed 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. Ths following provisions relating to ownership of the Property are a part of this Deed of Trust: Title. Grantor warrants that: (a) Grantor holds good and marketable title of record to the leasehold interest in the Property pursuant to the Lease, 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 6y, Lender in connection with this bead of Trust, and (b) 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 Dead of Trust, Grantor shall defend the action at Grantor's expense. Grantor may 6a 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. 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 Grantor's Indebtedness shall 6e 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 continua 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: (1) 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 Grantor which Grantor is authorized or required tv deduct from payments on the Indebtedness secured by this type of Deed of Trust; (3) 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 Grantor. 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 (2) 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 era 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 Lander and make it available to Lander within three (3) days after receipt of written demand from Lender to the extent permitted by applicable law. DEED OF TRUST Loan No: 6590258 (Continued) Page 6 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. Lander 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 Lander 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 (1) pay a reasonable rental for the use of the Property, or (2) vacate the Property immediately upon the demand of Lender. Other Remedies. Trustee or Lender shall have any other right or remedy provided in this Dead 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 ba made, Reasonable notice shall mean notice given at least ten (10) 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. Sala of the Property. To the extent permitted by applicable law, 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. Notice of sale having been given as then required by law, and not less than the time required by law having elapsed, Trustee, without demand on Grantor, shall sell the property at the time and place fixed by it in the notice of sale at public auction to the highest bidder for cash in lawful money of the United States, payable at time of sale. Trustee shall deliver to the purchaser his or her deed conveying the Property so sold, but without any covenant or warranty express or implied. The recitals in such deed of any matters or facts shall be conclusive proof of the truthfulness of such matters or facts. After deducting all costs, fees and expenses of Trustee and of this Trust, including cost of evidence of title and reasonable attorneys' fees, including those in connection with the sale, Trustee shall apply proceeds of sale to payment of (a) all sums expended under this Deed of Trust, not then repaid with interest thereon as provided in this Deed of Trust; (b) all Indebtedness secured hereby; and (c) the remainder, if any, to the person or persons legally entitled thereto, Attorneys' Fees; Expenses. If Lender institutes any suit or action to enforce any of the terms of this Deed of Trust, Lender shall ba 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 extant 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 reasonable attorneys' fees and Lender's legal expenses whether or not there is a lawsuit, including reasonable 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: (a) 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 (c) join in any subordination or other agreement affecting this Deed of Trust or the interest of Lender under this peed 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 shall be a party, unless the action or proceeding is brought by Trustee. Trustee. Trustee shall meat 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 tv any Trustee appointed under this Dead of Trust by an instrument executed and acknowledged by Lender and recorded in the office of the recorder of ADA County, State of Idaho. The instrument shall contain, in addition to all other matters required by state law, the names of the original Lender, 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 telafacsimile (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 Dead of Trust. All copies of notices of foreclosure from the holder of any lien which has priority over this Dead 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 peed 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 Lander to any Grantor is deemed to be notice given to all Grantors. EXHIBIT "A". An exhibit, titled "EXHIBIT "A"," is attached to this Deed of Trust and by this reference is made a part of this Deed of Trust just as if all the provisions, terms and conditions of the Exhibit had been fully set forth in this Dead of Trust. MISCELLANEOUS PROVISIONS. Tha 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. Thera 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 federal law applicable to Lender and, to the extent not preempted by federal law, the laws of the State of Idaho without regard to its conflicts of law provisions. This peed of Trust has been accepted by Lender in the State of Idaho. Choice of Venue. If there is a lawsuit, Grantor agrees upon Lender's request to submit to the jurisdiction of the courts of ADA County, State of Idaho. DEED OF TRUST Loan No: 5590258 (Continued) Page 7 EACH GRANTOR ACKNOWLEDGES HAVING READ ALL THE PROVISIONS OF THIS DEED OF TRUST, AND EACH GRANTOR AGREES TO ITS TERMS. GRANTOR: LAKEVIEW MERIDIAN INVESTORS, LLC OAAS LANEY, LLC, Member of LAKEVIEW MERIDIAN INVESTORS, LLC WHITEROCK INVESTMENTS, LLC, Member of OAAS LANEY, LLC gy: T. ERIK OAAS, Manager of WHITEROCK INVESTMENTS, LLC LANEYLAND L.P., Member of OAAS LANEY, LLC sy: STEVEN LANEY, General Partner of LANEYLAND L.P. R.R. DAVIS PROPERTIES, INC., Member of LAKEVIEW MERIDIAN INVESTORS, LLC By: RICHARD R. DAVIS, President of R.R. DAVIS PROPERTIES, INC. R.R. DAVIS PROPERTIES, INC. ay: RICHARD R. DAVIS, President of R.R. DAVIS PROPERTIES, INC. LIMITED LIABILITY COMPANY ACKNOWLEDGMENT STATE OF SS COUNTY OF On this day of , in the year 20 ,before me a notary public in and for the State of Idaho, personally appeared T. ERIK OAAS, Manager of WHITEROCK INVESTMENTS, LLC and STEVEN LANEY, General Partner of LANEYLAND L.P. and RICHARD R. DAVIS, President of R.R. DAVIS PROPERTIES, INC., known or identified to me (or proved to me on the oath of ), to be members or designated agents in the limited liability company of LAKEVIEW MERIDIAN INVESTORS, LLC, and the members or designated agents who subscribed said limited liability company name to the foregoing instrument, and acknowledged to me that they executed the same in said limited liability company name. Public for Idaho My commission expires Residing at CORPORATE ACKNOWLEDGMENT STATE OF ) SS COUNTY OF On this day of , in the year 20 ,before me a notary public in and for the State of Idaho, personally appeared RICHARD R. DAVIS, President of R.R. DAVIS PROPERTIES, INC., known ar identified to me (or proved to me on the oath of ), to be an authorized signer of R.R. DAVIS PROPERTIES, INC., the corporation that executed the instrument or the person who executed the instrument on behalf of said corporation, and acknowledged to me that such corporation executed the same. Residing at Notary Public for Idaho My commission expires EXHIBIT "A" Thie EXHIBIT "A" is attached to and by this reference le made apart of the Deed of Trust, dated May 2, 2006, and executed in connection with a loan or other financial accommodations between IDAHO INDEPENDENT BANK and LAKEVIEW MERIDIAN INVESTORS, LLC. PnnceL z A PMCEL Of` LAND BEINp A PORTION OF THE WEST•H~LF, SECTION 3, T'OWNSIIIP 3 NORTH, RAFIGE 1 WEST, BOISE MERIDIAN, MERIDIAN, ADA COUNTY, IDAFIO AND MORE PARTICULARLY DESCRIBED A5 FOLLOWS: DEGINNING AT A BRASS CAP MARKING TIIE 50U'IIiEAST CORNER OF TIIE NORTHEAST QUARTER OF SECTION 3, TOWNSHIP 3 NORTH, RANGE 1 WEST, BOISE MERIDIAN, MERIDIAN, ADA COUNTY, IDAHO; tHENCE ALONG TIIE 50UTHERLY BOUNDARY OF SAID NDRTFIEAST QUARTER OF 5EC1'ION 3, NORTI•I 88 DEGREES 55'29' WEST 2643.29 FEET TO A BRASS CAP MARKING TIIE SOUTHWEST CORNER OF TIIE NORTHEAST OUARTERI TIIENCE LEAVING SAID SOUTHERLY BOUNDARY NORTH 75 DEGREES 30'00' WEST 190.00 FEET TO A 2" IRON PIPE; THENCE NORTH 4D DEGREES DO'00" WEST 40.00 FEET TO AN IRON PIN; THENCE SOUTH 75 DEGREES 59'31" WEST 70.00 FEET TO AN IRON PIN; THENCE SDUTII 25 DEGREES 00'00' WEST 64.19 FEET TO AN IRON PIN; TIIEFICE IJORTII 89 DEGREES 25'06' WEST 254.51 FEET TO A POINT, SAID POINT ALSO BEING 111E REAL POINT OF BEGINNING; THENCE CONTINUING NURTII 09 DEGREES 25'D6' EST 100.01 FEET TO A POINT; TIIENCE SUU1'Il 00 DECREES 30' 11" WEST 407.97. FEET TD A PO[N'I'; TIIENCE SDU'lll lib 1)EGIIEES 54' I1'_ EAST 276.411 1'EEI 10 A PUINf MAIIK[F1I1 A PDIr)r or• CURVE; TIIENCE ALDNG A CARVE TO TIIE RIGIII 59.46 FEET, SAID CURVE HAVING A CENTRAL ANGLE DF 34 DEGREES U4'10', A RADIUS OF 1DD.U0 FEET, TANGENTS OF 30.64 FEET AF1D A LONG CFIURD OF 58.59 FEET BEARING SOUTH 51 DEGREES 52'06" EAST TO A POINT MARKING A POINT OF TANGENTS; THENCE SDUTII 34 DEGREES 50'01" EAST 292.99 FEET TO A POINT; TIIENCE SDUTII 89 DEGREES 48'41' EAST 147.34 FEET TO A POINT; TFIENCE NORTH 35 DEGREES DO'00' WEST 109.03 FEET TO A POINT; TIJENCE NURTII 51 DEGREES 45'00" WEST 580.00 FEET TQ A POINT; THENCE NORTH 00 DEGREE 29'44' EAST 335.18 FEET TO THE POINT DF BEGINNING. PARCEL II A PARCEL OF LAND LYING IN PORTIONS OF TIIE 50U~H HALF OF THE FIOR1'H IiALF AND TIIE FIURTII HALF OF TIIE 50UTN HALF OF SECTION 3, TOWNSHIP 3 NORTH, RANGE 1 WEST, BOISE MERIpIAFI, MERIDIAN, ADA COUNTY, 1DAI10 AND MORE PARTICULARLY DESCRIBED AS FOLLDWS: DEGINNING AT A POINT MARKIIJG THE NORTFIMIEST CORNER OF 111E SAID HORT11 HALF OP THE SDUTII HALF OF SECTION 3; THENCE SOUTFI B9 DEGREES 25'06' EAST 2,077.73 FEET ALOFIG TFIE NORTHERLY BOUNDARY Dr- TIIE SAlO NORTH HALF OF THE 50UTN HALF OF SECTION 3 TO A POINT, AL50 5A1D POINT BEING THE REAL POINT OF BEGINNING; TIIENCE SOUTH 0 DEGREE 29'44' WEST 335.18 FEET 70 A POINT; THENCE SOUTH 51 DEGREES 45'00" EAST 580.00 FEET TD A POINT; TIIENCE 50U1'Il 35 DEGREES 00'00" EAST 285.33 FEET TO A POINT; TIIEFICE SDUTII 22 bEGREE5 15'00' WE57 60.05 FEET 1'0 A PDINT; TIIEFICE SOUTH 43 DEGREES 58'10' EAST 238.75 FEET TO A POINT; TIIENCE SOU'il•I 29 DEGREES 00'00" EAST 110.00 FEET TO A POIFIT; THENCE NURTII GI DEGREES UD'OU' EAST 81,19 FEET TO A POINT OF CURVE; THENCE NORTFIEASiERLY ALONG A CURVE 70 TIIE LEFT 147.14 FEET, SAID CURVE HAVING A CEN"IRAL AFIGLE OF AB DEGREES 10'28', A RADIUS OF 175.00 FEET, TANGENTS OF 70.23 FEET AND A LONG CHORD OF 142.84 FEET BEARING FIORTII 3G DEGREES 54'46' EAST TO A POINT OF ENDING OF CURVE; TIIENCE NORTH 56 DECREES 30'00' WEST 151.38 FEET TO A POINT; TIIENCE NDRTFI 41 DEGREES 30'00" WEST 203.92 FEET TO A POINT; TIIENCE NORTH 17 DEGREES 15'00" WESt 94.14 FEET TO A POINT'; THENCE NUR'IH 7.2 DEGREES 15'00' EAST 147.00 FEET TO A POINT; TIIEFICE NURTII 65 DEGREES 50'00' EAST 45.00 FEET TO A POINT; TIIENCE SOUTH 87 DEGREES 20'00" EAST 78.40 FEET TO A POINT; TIIENCE SDUTII 68 DEGREES 00'00" EAST 61.48 FEET TO A POINT; THENCE SDUTII 71 DEGREES 33'25' EAST 88.D5 FEET TO A POINT; THENCE SDUTII 8U DEGREES DO'DO' EAST 108.33 FEET TD A POINT OF BEGINFIIFIG OF CURVE; TIIENCE NORTHEASTERLY ALONG A CURVE TO THE RIGHT 139.32 FEET, 5AIU CURVE HAVING A CErlrflnl nNGLE OF 25 DEGREES 35'19', A RADIUS OF 311.95 FEET, TANGEN'I5 OF 70.84 FEET AND ALONG CIiORU OF 138.IG FEET BEARING NORTH 56 DEGREES 12'20', EAST TO A POINT OF TANGENT; TIIENCE FIOR1'Il 69 DEGREES DO'00` EAST 115.08 FEET TO A POINT OF CURVE; TIIENCE NURTFIEASTERLY ALONG A CURVE TO THE LEFT 125.75 FEET, SAID CURVE 14AVIN0 A CENTRAL ANGLE OF 24 DEGREES 25'22', A RADIUS OF 295.00 FEET, TANGENTS OF 63.84 FEET AND A LONG CHORD OF 124,80 FEET BEARIFIG NDRTH 56 DEGREES 47'19' EAST TO A POINT OF ENDING DF CURVE; TIIENCE NORi'Il 44 DEGREES Op'00" WEST 79.63 FEET TO A POINT; TIIENCE NORTH 67 DEGREES 45'00' WEST 160.G0 FC•ET TO A POINT; TIIENCE SOUTH 65 DEGf1EES 50'OU' WEST 244.67 FEET TO A POINT; TIIENCE NDRTH 50 DEGREES 30'DO" WEST 114.35 FEET TO A POINT; THENCE NORTH 44 DEGREES 00'00' EAST 90.00 FEET TO A PDINT; TIIEFICE NURTII 17 DEGREES 00'00" WEST 175.D0 FEET TO A POINT; TFIENCE NORTFI 12 DEGREES 00'00" EAST 280.00 FEET TO A POINT; 7FIEFICE NORTH 77 DEGREES 30'00" WEST 170.b0 FEET 70 A. POINT; TIIENCE 50UT11 G8 DEGREES 00'00' WEST 2G5.00 FEET TO A PO1NI MARKING TIIE NORTHEAST CORNER OF TIIE SOUTHWEST QUARTER OF TIDE SAID 5ECT10N 3; TFIENCE NORTH 75 DEGREES 30'00' WEST 19D.00 FEET TO A POINT; TFIENCE FIOR1'II 40 DEGREES 00'00' WEST 40,00 FEET TO A POINT; TIIENCE 50UTI1 75 DEGREES 59'31' WEST 70.00 FEET TO A POINT; TIIENCE SUUTFI 25 DEGREES UO'00' WEST 64.19 FEET TO A POINT ON TFIE 5A I'D NORTHERLY 80UNDARV OF TIIE NDR1'FI FIALF OF TFIE SDUTII HALF OF SECTION 3; TFIENCE NOR7N 89 DEGREES 25'OG" WEST 254.51 FEET ALONG TIIE SAID NORTHERLY 80UNDARY OF TIIE NORTH HALF OF TIIE SOUTH HALF OF SECTION 3 TO THE POINT OF BEGLNNING. • - EXHIBIT "A" Loan No: 5590258 (Continued) Page ~ PARCEL IV-A A POnTiON OF SOUTHWEST DUAn'TER OF TFIE NOnT11WEST DUAR'fER DF SECTION 3, TOWNSHIP 3 NORTFI, RANDE 1 WE5T, BOISE MERIDIAN, MERIDIAN, ADA COUFI7Y, IDAHD, MORE PARTICULARLY DESCRIBED A$ FOLLDWS:' COMMENCING AT THE CORNER COMMON TO SECTIONS 4, 9, IO ANO THE SAID SECTION •3; THENCE NORTH 0 DEGREE 38'11' EAST, 2651.19 FEET TO TILE QUARTEn CORNER COMMON TO' 5AID SECTION 3 AND 4 AS SAME WAS REESTABLISHEp BY LS 972 (CP 8 F INSTRUMENT N0. 7852146, RECORDS OF ADA COUNTY, IDAHO); FROM WFIICN THE NORtI•IWEST CORNER OF SAID SECTION 3 eEARS NORTH 0 DEGREE 36'27' EAST, 2697.49 FEET; THENCE NORTH 0 DEGREE 36'27" EAST 22.64 FEET TO A 5/q' IRON PIN; THENCE 50U'ill 8B DEGREES 55'31'. EA5T, 379.53 FEET TO TIIE REAL POINT OF BEGINNING; THENCE NORTFI 5 DEGREE 39'31" EAST, 290.28 FEET TO A POiFIT; 1'IiENCE 46.45 FEET ALONG THE ARC OF A NON•TANGENT CURVE TO TIiE•RIGHT, RAVING A RADIUS OF 250.00 FEET, A CENTRAL ANGLE Of 10 DEGREES 38'46', AND A LUNG CHORD BEARING 50UTH 49 bEGREES 22'43" EAST, 46.39 fEEt TO A POINT; THENCE SOUTH 44 DEGREE5 03'20' EAST, 136.A1 FEET TO A POINT; 1'IIENCE SDUTII p DEGREE5 18' 10' EAST, iG5.80 FEET TO A POINT; 1'IIF.Nf.E NUllfll 88 DEGREE5 55'31" WEST, Ig2.G5 FEET TU 'TIIE POIFII' OF BEGINNING. PARCEL IV-e ' A POnT10N OF GOVERNMENT LOT 4 AND TIIE SOUTFIWEST DUARTER OF TFIE NORTHWEST QUMTER OF SECTION 3, TOWNSHIP 3 NORTH, RANGE 1 WEST, BOI5E MERIDIAN, MERIDIAN, ADA COUNTY, IDAHO MORE PARTICULARLY DESCRIBED A5 FOLLOWS: COMMENCING AT THE CORNER COMMON TO SECTIONS 4, 9, 10 AND THE SAID SECTION 3; THENCE NORTH D DEGREE 38'11' EAST, 2651.19 FEET TO THE QUARTER CORNER COMMON TO SAID SECTION 3 AND 4 A5 SAME WA5 REESTABLISFIED eY LS 972 (CP d F INSTRUMENT N0. 7B521a6, RECORDS OF ApA COUNTY, IDAIlO); FROM WFIICII THE FIOR1'HWEST CORNER OF 5AID SECTION 3 BEAR5 NORTFI 0 DEGREE 30'27' EAST, 2697.49 FEET; THENCE NORTH 0 DEGREE 36'27" EAST 22.64 FEET TO A 5/q' IRON PIN; THENCE 50U"fll 08 DEGREES 55'31" EAST, 834.71 FEET Tp•A POINT; THENCE NORTH 1 DEGREE 04'29" EAST, 77.45 FEET TO TFIE REAL POINT OF BEGINNING; THENCE 199,31 FEET ALOIJG THE ARC OF CURVE TO Th1E RIGIJI' IIAVINO A RADIUS Of 270.00 FEE 1', A CENTRAL ANGLE OF 42 DEGREES 17'41" AND A LOFIG CHORD eEARIFIG NORI'FI 65 DEGREES 12'11' wEST, 194.81 FEET TO A POINT; THEFICE NORTH 44 DEGREES 03'20" WEST, 190.Ofi FEET TO A POINT; THENCE NORTH 37 DEGREE 38"05' EAST, 125.90 FEET TO A POINT; THENCE NORTH 4 DEGREES 28'20' WE5T, 178.94 FEET TO A POINT; THENCE NORiII 4g DEGREE5 13'43' WEST, 619.18 FEET TO A POINT; THENCE NURTII 89 DEGREES 21'33" WE5T, 39.72 FEET TO A POINT; THENCE NORTFI 0 DEGREE 38'27" EAST, 178.61 FEET TD A POINT; THENCE SOUTH 09 DEGREE5 21'33' EA5T, 104.94 FEET TO A POINT; THENCE NURTII 2G DEGREES 4G'S5` EAST, A63.T3 FEET TO A PO[NT; .tHEFICE NORTH 13 pEGnEES 05'U8' EAST, 186.16 FEET TD A POINT; THENCE SOUTH 89 DEGREE5 23'04' EA5T, 221.37 FEET TO A PUIN'i; TFIENCE 5UUT11 0 DEGREE 36'56" WE5T, 30.00 FEET TO A PDINT; ThIENCE NORTH G9 DEGREES 23'D4' WE5T, 114.43 FEET TO A POINT; 'THENCE SUUT'll 1U DEGREES 3A'11' WEST, 162.48 FEET TO A POIIJT; THENCE SUU11•I 5 DEGREES 36'09" EAST, 160.95 FEET TO A POINT; 7HEF1L'E 50UTH 4q DEGREE5 56'55' WEST, 66.41 FEET TO A POINT; THENCE SOUTH 10 DEGREES 49'04' WE5T, 123.62 FEEt TO A POINT; THENCE 50UT11 12 DEGREES DO'00" EAST, 85.00 FEET TO A POINT; TIiENCE 5UUT11 53 DEGREES 26'21' EAST, 142.60 FEET TO A POIFIT; THENCE SUl1TFl 8 DEGREES 51'51' WE5T, 151.05 FEET TO A POIM7; THENCE 50U'fll 41 DEGREE5 14'14' EA5T, 171.06 FEET TO A POINT; THENCE SOUTH 89 DEGREE5 12'26' EAST, 122.33 FEET TO A POINT; THENCE SUU1'11 43 DEGREE5 03'05" EA5T, GO.QO FEET TO A POINT; THENCE 50UTF1 0 UEGnEE 36'15" WEST, 671.50 FEET TO THE POINT OF BEGINNING. PARCEL IV-C A PORTION OF THE NORTHWEST QUARTER OF SECTION 3, TUWNShIIP 3 NOnTIi, RANGE I WEST, BOi5E MERIDIAN, MERIDIAN, ADA COUNTY, IOAl10, MORE PARTICULARLY DESCRIBED AS FOLLOWS: COMMENCING AT TFIE CORNER CDM~AOFI 1'0 SECTIONS 4, 9, 10 AFIU TIIE 5AID SECTION 3; THENCE EIGHTH D DEGREE 38'11' EAST, 2651,19 FEET TD THE QUARTER CORNER COMMON TO SAID SECTIONS 3 AND 4 AS SAME WAS REESTABLISI1Eb BY LS 972 (CP 8 F Ih15TRUMENT'N0. 7852146, RECORDS OF ADA CDUNTY; tbAIIO); r-nOM WIIICI.1 TFIE NURTIIWEST CORNER OF SAID SECTION 3 BEARS NORTFI 0 DEGREE 38'27" EAST, 2697.49 FEET; THENCE NOnTII 0 DEGREE 38'27' EAST 22.6A FEET TO A 5/B' IRON PIN; THENCE SUUTII 88 DEGREE5 55'31" EAT, 1704.61 FEET t0 A POINT; TIJENCE NURTII 1 DEGREE 04'29' EA5T; 303.15 FEET TO THE REAL POINT OF BEGINNING; THENCE EXHIBIT "A" Loan No: 5590258 (Continued) Page 5 PARCEL V Lots'1 and 52 in Block 5, and Lot I1 in Block 9 of Cherry Lane VillageNo. 1 Subdivision, according to the plat thereof filed in Book 44 of Plats at Pages 3537 thru 3538, records of Ada County, Idaho. PARCEL VI Lots 12 and 21 in Block 9 and Lot 4 in Block 11 and Lot 53 in Block 5 of Cherry Lane Villaga No. 2 Subdivision, according to the plat thereof, filed in Book 46 of Plats at Pages 3791 and 3792, records of Ada County, Idaho. PARCEL VII Lot 83 in Block 5 and Lot 14, in Black 13 Cherry Lana Village No. 3 Subdivision according to the official plat thereof filed in Book.58 of.Plats at.Pages 5473 thru 5475, records of Ada County, Idaho. PARCEL VIII Lot 28. in Block 11 attd Lot 39 is Block 13 Cherry Lana Village No. 4 Subdivision according to the official plat thareof filed in Book 63 of Plats at Pages 6376 and 6377, records of Ada County, Idaho. PARCEL IX Lot 9 in Block 1 of Record Of Survey No. 802 of adjusted lot lines for Lots 8, 9 and 10, in Block 1 of The Lake at Chary Lane, according to tha plat thaeo~ filed in Book 52 of Plats at Pages 4569 and 4570, records of Ada County, Idaho. EXCEPT that portion lying within the original Lot 8. PARCEL X Lot 5 in Block 1 and Lot 13 in Block 2, Tha Lake at Cherry Lane No. 2, according to the plat thereat, filed in Book 54 of Plats at Pages 4882 and 4883, records of Ada County, Idaho. PARCEL XI Lot 24 in Block 2 of The Lake at Cherry Lane No. 3 Subdivision according to tha official plat thereof filed in Book 70 of Plats at Pages 7167 and 7168, racords of Ada County, Idaho. PARCEL XIl Lot 19 in Block 1 and Lot 46 in Block 2 of The Lake at Cherry Lane No. 4 Subdivision, according to the official plat thereof, filed in Book 74 of Plats at Page 7674 and 7675, records of Ada County, Idaho. _ I=XHIBIT "A" Loan No: 5590258 (Continued) Page 6 THIS EXHIBIT "A" IS EXECUTED ON MAY 17, 2006. GRANTOR: LAKEVIEW MERIDIAN INVESTORS, LLC QAAS LANEY, LLC, Member of LAKEVIEW MERIDIAN INVESTORS, LLC WHITEROCK INVESTMENTS, LLC, Member of QAAS LANEY, LLC By: T. ERIK QAAS, Manager of WHITEROCK INVESTMENTS, LLC LANEYLAND L.P., Member of QAAS LANEY, LLC ey: STEVEN LANEY, General Partner of LANEYLAND LP. R.R. DAVIS PROPERTIES, INC., Member of LAKEVIEW MERIDIAN INVESTORS, LLC By: RICHARD R. DAVIS, President of R.R. DAVIS PROPERTIES, INC. R.R, DAVIS PROPERTIES, INC. ey: RICHARD R. DAVIS, President of R.R. DAVIS PROPERTIES, INC. LPACii PRO L~nCInO. Vr, 8,3~.OP.~W Copy M~I~A FM~dY Bd.nlan,, Ina, BOG], jQK. Ni R~pny R~,MA. • C -:WMLPNdJR06l/1TklCFILLR\DOI.FC ~-pY~s PR•~• _ _ EXHIBIT "A" Loan No: 5590258 (Continued) Page 4 NORTH 66 DEGREES 28'40' WEST, 157.70 FEET TO A POINT; THENCE NDRTIi 56 DEGREES 56'39' WEST, 717.37 FEET 7D A POINT; THENCE NDRTIi 69 DEGREES 23'd4' WEST, 36.12 FEET TO A POINT; THENCE NDR7F1 0 DEGREE 36'28" EA5T, 5.00 FEET TO A POINT; THENCE 154.59 FEET ALONG TFIE ARC OF A NON•TANGENT CURVE 'f0 TIIE LEFT, FIAVING A RADIUS DF 225.00 FEET, A CENTRAL ANGLE OF 39 DEGREES 22'00", ANO A LONG CHORD BEARING NORTH 19 DEGREES 04'45' WEST, 151.57 FEET TO A POINT; THENCE NORTH 38 DEGREES 45'45' WEST, 39.00 FEET TO A POINT; THENCE ~NORTFI 51 DEGREES 14'15' EAST, 11D.00 FEET TO A POINT; 7FIENCE NORTH 26 UEGREES 11'31' WEST, 134.78 FEET TO A PD[NT; THENCE NORTH 4 DEGREES Dd'20' WEST, 277.45 FEET TO A POINT; THENCE NOnrH 31 DEGREES 46'35"' WEST, 241.56 FEET TO A POINT; THENCE NORTH 0 DEGREE 36'56' EA5T, 132.59 FEET TO A POINT; TFIENCE NORTH 89 DEGREES 23'04" WE57, 110.00 FEET TO A POINT; 7FIENCE NORTH 0 DEGREE 36'56' EAST, 30.00 FEET TO A POINT; THENCE SOUTH 89 DEGREES 23'04' EAST, 175.94 FEET TO A POINT; THENCE SOU7N 78 DEGREES 05'29' EAST, 71.13 FEET TO A POINT; THENCE 50UTIi 63 DEGREES 13' 16' ):AST, 65.34 FEET TO A POINT; 71{ENCE SOUTH 56 DEGREES 28'32" EA5T, 79.07 FEET TO A POINT; THENCE SUU1'II 53 DEGREES 15'09' EAST, BG.07 FEET TO A PRINT; THENCE SDUTFI 42 DEGREES 31'18" EAST, 7D.53 FEET TD A POINT'; THENCE SOUTH 35 DEGREES 28'22" EAST, 77.08 FEEt i0 A POINT; TIIEFICE SDUTH 5 DEGREES 49'06' EAST, 249.89 FEET TO A PRINT; THENCE SOUTH 8 DEGREES 16'07" EAST, 125.42 FEET TO A POINT; THENCE SOUTI•I 13 DEGREES 56'20" EAST, 266.06 FEET TO A POINT; TFIENCE SOUTH 42 DEGREES 43'29' EAST, 283.07 F.EE7 TO A POINT; THENCE NORTH 61 DEGREES dg'13' EAST, 185.37 FEET 70 A POIN'i; TFIENCE NORTH 11 DEGREES DD'42' WEST, 399.24 FEET TO A POINT; TIIEFIGE SDUTH 69 DEGREES 18'd9" EAST, 398.40 FEET TO A POINT; TFIENCE SOUTH 79 DEGREES D2'15' EAST, 61.16 FEET TD A PRINT; THENCE SDUTH 60 DEGREES 40'15' EAST, 164.39 FEET TO A POINT; THENCE 50UT1•I 85 DEGREES 10'18" EAST, 136.30 FEET TO A POINT; THENCE SOUTFI 0 DEGREE 30'15' WEST, 235.93 FEET TO A POINT; T11EF1CE NDRTIi 89 DEGREES 29'45' WEST; 80.00 FEET TO A POINT; THENCE 50UT'H 78 DEGREES 33'49' WEST, 182.71 FEET TO A POINT; TI{ENCE SOUTH 11 DEGREES 45'15' WEST, 185.77 FEET TO A POINT; THENCE SOUTH 0 DEGREE 30'15" WEST, 154,10 FEET TD A POINT; THENCE 288.86 FEET ALONG THE ARG OF A NON•TANGENT CURVE TO 'fHE LEFT, HAVING A RADIUS OF A25.00 FEET, A CENTRAL ANGLE OF 38 DEGREES 56'31", ANU A LONG CHORD BEARING SOUTH 63 DEGREES 04'11' WEST, 283.33 FEET TO TIIE POIFIT OF BEGINNING. PARCEL IV-D A PORTION OF THE SOUTHEAST QUARTER OF TFIE NORTHWEST QUARTER OF SECTION 3, TOWNSHIP 3 NORTFI, RANGE 1 WEST, B0I5E MERIDIAN, MERIDIANI, AOA COUNTY, IDAHO, MORE PARTICULARLY DESCRIBED AS FOLLOWS: COMMENCING AT THE CORNER COMMON TO SECTIONS 4, 9, 10 AND THE SAID SECTION 3; TFIENCE. NOR'ill 0 DEGREE 38'11' EAST, 2651.19 FEET TO TIIE OUARTER.CORNER COMMON TO SAID SECTIONS 3 AND 4 AS SAME WA5 REESTABLISHED BY LS 972 (CP b F INSTRUMENT ND. 7852146, RECORDS DF ADA COUNTY, IDAHO); FROM WHICH THE NDRTFIWEST CORNER OF SAID SECTION 3 BEARS NORTH 0 DEGREE 38'27' EAST, 2697.49 FEET; THENCE NORTH 0 UEGREE 3.8'27' EAST 22.64 FEET TO A 5/B" IRON PIN; THENCE SOUTH 88 DEGREES 55'31' EA5T, 1614.53 FEET TO THE REAL POINT OF BEGINNING; THENCE NORTH 10 DEGREES 33'50' EAST, 72.37 FEET TO A POINT; TFIENCE 129.52 FEET ALONG THE ARC DF A NON-TANGENT CURVE TO TIIE RIGIiT, FIAVING A RADIUS OF 600.00 FEET, A CENTRAL ANGLE OF 12 DEGREES 22'07', ANO A LONG CHORD BEARING 50UTH,56 DEGREES 49'29' EA5T, 129.27 FEET TO A ,POINT; THENCE SOUTH 50 DEGREES 38'25" EA5T, 4.33 FEET TO A POINT; THENCE NORTH 88 DEGREES 55'31" WEST, 124.84 FEET TO TFIE POINT OF BEGINNING. PARCEL IV-E A PORTION OF TFIE SOUTHEAST DUARTER OF t1iE NORTHWEST QUARTER OF SECTION 3, TOWNSHIP 3 FIOR'fH, RANGE 1 WEST, BOISE MERIDIAN, MERIDIAN, AOA COUNTY, IUA110, MORE PARTICULARLY DESCRIBED AS FOLLOWS: COMMENCING A7 THE CORNER COMMON Tp SECTIONS. 4, 9, 10 ANp THE SAID SECTION 3; THENCE NORTH D DEGREE 38'11: EAST, 2651.18 FEET TO THE QUARTER'CORNER COMMON TO SAIp SECTIONS 3 ANO d AS SAME WAS REESTABLISHBD BY L5 972 (CP G F INSTRUMENT N0. 7852146, RECORDS OF AOA COUNTY, IDAHO); FROM WHICH TFIE NURTIIWE57 CORNER OF SAID SECTION 3 BEARS NORTH D DEGREE 38'27' EAST, 2697.49 FEET; THENCE NDRTIi 0 DEGREE 38'27' EAST 22.64 FEET TO A 518" IRON PIN; 'TFIENCE 50UTIi 88 DEGREES 55'31' EAST, 1977.72 FEET TO A 5/8".IRON PIN AND THE REAL PRINT QF BEGINNING; THENCE NORTH 88 UEGREES 55'31' WE57, 109.62 FEET TO A PRINT; THENCE 11.06 FEET ALONG TFIE ARC OF A NON•TANGENT CURVE TO TIIE LEFT, HAVING A RADIUS OF 249.75 FEET, A CENTRAL ANGLE OF 2 DEGREES 32'16', AND A LONG CHORD BEARING NDRTH 49 DEGREES 22'17' WEST, 11.06 FEET TO A POINT; THENCE NORTH 50 DEGREES 38'2S" WEST, 94,32 FEET TO A POINT; THENCE 60.45 FEET ALONC THE ARC OF A CURVE TO THE LEFT, HAVING A RADIUS OF 680.00 FEET, A CENTRAL ANGLE OF 5 DEGREES 05'36', ANU A LONC CHORU BEARING NORTH 53 UEGREES 11'13" WEST, 6D.43 FEET TO A POINT; THENC E 30.13 FEET ALONG THE ARC OF A CURVE TO TIIE RIGHT, HAVING A RADIUS OF 20.00 FEET, A CENTRAL ANGLE OF 88 DEGREES 18'50", AND A LONG CHORD BEARING NORTH 12 DEGREES 34'36' WEST, 27.36 FEET TO A PRINT; 7HEFIGE NDRTIi 3U DEGREES 34'50'.EAST, 84.13 FEET TO A POINT; TIIEFICE 269.77 FEET ALONG THE MC OF A CURVE TO THE RIGHT, HAVING A RADIUS OF 375,00 FEET, A CENTML ANGLE OF 41 DEGREES 13'04', ANp A LONG CHORD BEARING' NORTH 51 UEGREES 11'21' EA5T, 263.99 FEET TO A POINT; THENCE SOUTIi 0 DEGREE 30'15" WEST, 369.89 FEET TO THE POINT OF BEGINNING. EXHIBIT "A" Loan No: 559025$ . (Continued) Page 2 EXCEPT THAT PORTION LYING WITHIN THE FOLLOWIDIG 51JBpIVISIONS: CHERRY LANE VILLAGE N0. 1 SUBDIVISION, ACCORDING TD TI•IE PLAT 711EREOF, FILED IN BOOK 44 OF PLATS AT PAGES 3537 AND 3538, RECUR05 Of AUA CDUNTY, . IUAFIO; ~C1IERRY LANE VILLAGE N0. 2 SUBDIVISION, ACCORDING TO THE PLAT THEFlEOF, FILED IN BpOK 46 OF PLAT5 AT PAGES 3791 AND 3792, RECORDS OF ADA COUNTY, I bAI l0 ; THE LAKE AT CHERRY LANE, ACCORDING TO TILE PLAT THEREOF FILED IN BOOK 52 OF PLATS AT PAGE$ 4569 AND 4570, RECORDS OF ADA COUNTY, IDAI10; TIME LAKE AT CHERRY LANE ND. 2, ACCORDING TO THE PLAT THEREOF FILED IN BOOK 54 OF PLAT5 AT PAGES 4882 ANU 4883, RECORDS OF ADA COUNTY, IDAIlO; 711E LAKE nT CHERRY LANE N0. 4 SUBDIVISION, ACCORDING TO TIME PLAT THEREOF, FILED IN BOOK 74 OF PLATS AT PAGES 7674 AND 7675, RECORDS OF AUA COUNTY, i pn110 . PARCEL III-A A PORTION OF THE WEST HALF OF SECTION 3, TOWNSHIP 3 MURTII, RANGE 1 WEST, BUfSE MERIDIAN, MERIDIAN, ApA COUNTY, IpAIlO, MORE PARTICULARLY DESCRIBED AS FOLLOWS: - COMMENCING AT TIME CORNER COMMUN TO SECTIONS 4, 9, f0 ANO T11E SAID SECTION 3; TIIENCE NDRTH 0 DEGREE 38'11" EA5T 2651.19 FEET TO TI1E QUARTER CORNER COMMON TD SAID SECTIONS 3 AND 4 AS SAME WAY REESTABLIS11Ep 8Y L5 972 (CP b F IN51'RUMENT N0. 7852146, RECORDS DF ApA COUNTY, IDAIlO) ; FROM WHICH ThIE NORTFIWES7 CORNER OF SAID SECTION 3 BEARS NOR 71{ 0 DEGREE 38'27' EA5T 2697.49 FEET; TIIENCE NORTH 0 DEGREE 38'27" EAST 22.64 FEET TO A 5!e' IRDN P[N; TIIENCE SOU711 88 DEGREES 55'31" EAST 379.53 FEET TO TILE REAL POINT OF BEGINNING; 711ENCE CONTINUING SOUTH ee DEGREES 55'31" EAST 182.65 FEET TO A POINT; THENCE SOUTH 8 DEGREES 18'10' EAST 4A0.66 FEET "f0 A POINT; THENCE SUUfII 16 DEGREE5 18'25" WE57 218.04 FEET TO A PO[N'r; TIIENCE PIOR'fIl 89 DEGREE5 13'51" EAST 540.22 FEET 70 A POINT; THENCE NORTH 71 DEGREES 43'34' EAST 442.A6 FEET TO A POINT; THENCE NOR 711 10 DEGREE5 33'50' EAST 487.84 FEET TO A POIPIT; TIIENGE SOU'fFl 88 DEGREE5 55'31' EA5T 124.84 FEET TO A POINT; TIIENCE 50UT11 50 DEGREES 38'25" EAST 89.99 FEET TO A POINT; ,7FIENCE 165.33 FEET ALONG THE ARC DF A CURVE TO THE RIGHT, I•IAVING A RADIUS.OF 250.25 FEET, A CEIITML ANGLE OF 37 DEGREE5 51'08', AND A LONG CHORD BEARIFIG SOUTFI 31 DEGREES 42'52' EA5T 162.34 FEET 70 A POINT; THENCE 1•IORTH 89 DEGREES 29'44" WEST 120.24 FEET TO A POINT; THENCE SOUTH 4 DEGREE 27' 17' EAST 80.30 FEET TO A POINT; T1IEPICE SOU711 0 DEGREE 30'16" WEST 23D.52 FEET TO A POINT; `TIIENGE 5UUT11 10 DEGREE5 31'20' WE5T 123.51 FEET TO A POINT; TIIENGE SOUTH 90 DEGREES 14'07" WE5T 119.57 FEET TO A POINT; TIIENCE SOUrFI 50 DEGREE5 50'29' WE5T 134.39 FEET 70 A POINT; TIIENCE SOUTFI 71 DEGREES 28'48' WEST 120.64 FEET TO A POINT; TIIENCE 50UT11 82 DEGREE5 AS'52" WEST 225.84 FEET TO A POINT; TFIENL'E SoUTII 89 DEGREES 02'57" WEST 67.30 FEET TO A POINT; 7FIEPICE NORTH 89 DEGREE5 10'41" WEST 625.D6 FEET TO A POINT; THENCE NURTII 77 DEGREE5 29'20' WEST 148.07 FEET TO A POINT; THENCE NORTH 89 DEGREES 10'41" WE5T 160.40 FEET TO A POINT LYING 65.Op FEET EA5T OF TILE WEST 80UNDARY OF SAID SECTION 3; THENCE ALONG A LINE 65.00 FEET EAST OF ANU PAMLLEL TD THE WE5T BOUNDARY OF SAID SECTION 3 PIORTFI 0 DEGREE5 38'11' EAST 247.64 FEET TO A POINT; TIIENCE SOU'1'II 89 DEGREES 21'49' EAST 156.03 FEET TO A POINT; TIIENCE NURTII X15 DEGREES 03'16' EAST 163.61 FEET TO A POINT; TIIENCE NORTH 5 DEGREE5. 39'91" EAST 502.42 FEET TO TILE POINT OF BEGINNING. PARCEL III-g A PORTION OF THE WE5T NALF OF SECTION 3, TOWNSHIP 3'NORTII, RANGE 1 WE5T, GUISE MERIDIAN, MERIDIAN, ADA COUNTY, IUAIlO, MORE PARTICULARLY DESCRIBED A5 FOLLOWS: COMMENCING AT TILE CORNER COMMON TO SECTIDNS 4, 9, f0 AND TILE SAID SECTION 3; TIIENCE NORTH 0 DEGREE 38'11' EAST 2651.19 FEET Tp TILE QUARTER CORNER COMMUN TO SAID SECTIONS 3 AND 4 AS SAME WAS REESTABLI51iED BY LS 972 (cP a F INSTRUMENT N0. 7852146, RECORDS OF ADA COUNTY, IpAliO) ; FD.RM WIIICII TILE NOR1'IIWEST CORNER OF SAID SECTION 3 BEARS NORTH 0 DEGREE 38'27" EAST 2697.A9 FEET; THENCE NDRTH 0 DEGREE 38'27" EA5T 22.64 FEET TO A 5/e" IRDN PIN; TNENCE SDUTH 88 DEGREES 56'31' EASt 1977.72 FEET TG A 5/B" IRON PIN ANU tIIE REAL POINT GF BEGINNING; TIIENCE SOUiIl 0 DEGREE 30'15' WEST 413.59 FEET TO A POINT; TIIENCE NORTH 68 DEGREE5 5A'11"•WEST 26.71 FEET Tp A POINT; THENCE NURTII 68 DEGREES 54'11' WEST 26.71 FEET Tp A POINT; TIIENCE NORrII D DEGREE 30'15' EA5T 217.93 FEET Tp A POINT; TIIENGE 211.88 FEET ALONG TILE ARC OF A CURVE TO TILE LEFT, HAVING A RADIUS OF 249.75 FEET, A CENTRAL ANGLE OF 48 DEGREES 36'25" AND A LONG CIIORU BEARING NORTN 23 DEGREES 47'S7' WEST 205.58 FEET TO A POINT.; THENCE 50UT11 88 DEGREES 55'31' EAST iD9.62 FEET 70 TILE POINT OF'BEGINNING. DEED OF TRUST Loan No: 5590258 (Continued) Page 8 REQUEST FOR FULL RECONVEYANCE (To 6e used only when obligations have been paid in full) To: ,Trustee Tha undersigned is the legal owner and holder of all Indebtedness secured by this Deed of Trust. All sums secured 6y this Deed of Trust have bean 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 6y 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: LP9EP PPOJ Lm0~np, v. 6.]1.00.000 Cepl. NdInC Fin.~dr sdu~ian~, inu. 1BB), :a0e AID Pr0~u P~,wC • 10 P.WML/WO~PPOSUIh1CFOLR\601.FC Tit-0816 PP-t4 DEED O~ TRUST Loan No: 5590258 (Continued) Page 6 Joint and Several Liability. All obligations of Grantor under this Deed of Trust shall be joint and several, and all references to Grantor shall mean each and every Grantor, This means that each Grantor signing below is responsible for all obligations in this Daed of Trust. Where any one or more of the parties is a corporation, partnership, limited liability company or similar entity, it is not necessary for Lander 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 peed of Trust shall not prejudice yr 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 Lander 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 tv be illegal, invalid, or unenforceable as to any person or circumstance, that finding shall not make the offending provision illegal, invalid, or unenforceable as to any other person or 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 unenforceabitity 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 Dead 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 Idaho as to all Indebtedness secured by this Deed of Trust. 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 bead of Trust shall have the meanings attributed to such terms in the Uniform Commercial Code: Beneficiary. The ward "Beneficiary" means IDAHO INDEPENDENT BANK, and its successors and assigns. Borrower. The word "Borrower" means LAKEVIEW MERIDIAN INVESTORS, LLC; and R.R. DAVIS PROPERTIES, INC. and includes all co-signers and co-makers signing the Note and all their successors and assigns. Deed of Trust. The words "peed 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 Rants, Default, The word "Default" means the Default set forth in this Deed of Trust in the section titled "Default". Environmental Laws. The words "Environmental Laws" mean any and all state, federal and local statutes, regulations and ordinances relating to the protection of human health or the environment, including without limitation the Comprehensive Environmental Response, Compensation, and Liability Act of 1980, as amended, 42 U,S,G. Section 9fi01, et seq, ("CERCLA"), the Superfund Amendments and Reauthorization Act of 1986, Pub. L. No. 99-499 ("SARA"1, the Hazardous Materials Transportation Act, 49 U.S.C. Section 1801, et seq., the Resource Conservation and Recovery Act, 42 U.S.C. Section fi901, et seq., or other applicable state or federal laws, rules, or regulations adopted pursuant thereto. 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 Dead of Trust. Granter. The word "Grantor" means LAKEVIEW MERIDIAN INVESTORS, LLC; and R.R. DAVIS PROPERTIES, INC.. Guarantor, The word "Guarantor" means any guarantor, surety, or accommodation party of any or all of the Indebtedness. Guaranty. The word "Guaranty" means the guaranty from Guarantor to Lender, including without limitation a guaranty of all or part of the Note. Hazardous Substances. The words "Hazardous Substances" mean materials that, because of their quantity, concentration or physical, chemical or infectious characteristics, may cause or pose a present or potential hazard to human health or the environment when improperly used, treated, stored, disposed of, generated, manufactured, transported or otherwise handled. The words "Hazardous Substances" era used in their very broadest sense and include without limitation any and all hazardous or toxic substances, materials or waste as defined by or listed under the Environmental Laws. The term "Hazardous Substances" also includes, without limitation, petroleum and petroleum by-products or any fraction thereof and asbestos. Improvamente. 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, casts 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 ar Lender to enforce Grantor's obligations under this bead of Trust, together with interest on such amounts as provided in this Deed of Trust. Specifically, without limitation, Indebtedness includes all amounts that may be indirectly secured by the Cross-Collataralization provision of this Deed of Trust. Lease, The word "Lease" means the lease of the Property dated May 17, 2005, between CITY OF MERIDIAN, Landlord and Grantor, Lender. The word "Lender" means IDAHO INDEPENDENT BANK, its successors and assigns, Note, The word "Note" means the promissory note dated May 17, Zoos, in the original principal amount of S649,759.8a from Grantor to Lender, together with all renewals of, extensions of, modifications of, refinancings of, consolidations of, and substitutions for the promissory note or agreement. NOTICE TO GRANTOR: THE NOTE CONTAINS A VARIABLE INTEREST RATE. Personal Property. Tha 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 bead 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 PIONEER TITLE COMPANY OF ADA COUNTY, whose address is 8151 W. RIFLEMAN AVENUE, BOISE, ID 83704 and any substitute or successor trustees. DEED OF TRUST Loan No: 5590258 (Continued) Page 4 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 an the first page of this Deed of Trust. FURTHER ASSURANCES; ATTORNEY-IN-FACT. The following provisions relating tc 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 (1) Grantor's obligations under the Note, this Deed of Trust, and the Related Documents, and (2) the liens 'and security interests created 6y this Deed of Trust as first and prior liens on the Property, whether now owned or hereafter acquired 6y Grantor. Unless prohibited 6y law ar 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 yr desirable, in Lender's sole opinion, to accomplish the matters referred to in the preceding paragraph. FULL PERFORMANCE. If Grantor pays all the Indebtedness when due, and otherwise performs all the obligations imposed upon Grantor under this peed 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. Grantor fails to make any payment when due under the Indebtedness. Other Defaults. 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 Grantor. Compliance Default. Failure to comply with any other term, obligation, covenant or condition contained in this Deed of Trust, the Note ar 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 far taxes or insurance, or any other payment necessary to prevent filing of or to effect discharge of any lien. Default In Favor of Third Parties. Should 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 Grantor's ability to repay the Indebtedness or perform their respective obligations under this Daed of Trust or any of the Related Documents. False Statements. Any warranty, representation or statement made or furnished to Lender 6y Grantor or on 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 Collateralizatlan. 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 Grantor's existence as a going business, the insolvency of Grantor, the appointment of a receiver for any part of 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 Grantor. Creditor or Forfeiture Proceedings. Commencement of foreclosure or forfeiture proceedings, whether by judicial proceeding, self-help, repossession or any other method, by any creditor of Grantor or 6y any governmental agency against any property securing the Indebtedness. This includes a garnishment of any of Grantor's accounts, including deposit accounts, with Lender. However, this Event of pefault shall not apply if there is a good faith dispute by Grantor as to the validity or reasonableness of the claim which is the basis of the creditor or forfeiture proceeding and if 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. Lease Default. Grantor defaults under the terms of the Lease, or any other event (whether or not Grantor's fault) results in the termination or cancellation of Grantor's leasehold rights. Breach of Other Agreement. Any breach by Grantor under the terms of any other agreement between 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 Grantor to Lender, whether existing now or later. Events Affecting Guarantor. Any of the preceding events occurs with respect to any Guarantor of any of the Indebtedness or any Guarantor 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 6e 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 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 tv 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 (15) days; or (2) if the cure requires more than fifteen (15) days, immediately initiates steps which Lender deems in Lender's sole discretion to 6e 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: Notice of Default. In the Event of Default Lender shall execute or cause the Trustee to execute a written notice of such default and of Lender's election to cause the Property to be sold to satisfy the Indebtedness, and shall cause such notice to be recorded in the office of . the recorder of each county wherein the Real Property, or any part thereof, is situated. 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 Grantor to declare the entire Indebtedness immediately due and payable, including any prepayment penalty which Grantor 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. 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 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 casts, 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 DEED OF TRUST Loan No: 559025$ (Continued) Page 2 by Lender's acquisition of any interest in the Property, whether by foreclosure or otherwise. Nuisance, Waete. 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, ar 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 tc the use or occupancy of the Property, including without limitation, the Americans With pisabilities Act. Grantor may contest in goad 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, 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. Compliance with Lease. Grantor will pay all rents and will strictly observe and perform on a timely basis all other terms, covenants, and conditions of the Lease. Grantor will indemnify and hold Lender harmless against all losses, liabilities, actions, suits, proceedings, costs including reasonable attorneys' fees claims, demands, and damages whatsoever which may be incurred by reason of Grantor's failure to pay rents or strictly observe or perform under the Lease, Other Agreements Relating to the Lease. Grantor further agrees (1) not to surrender, terminate, or cancel the Lease, and (2) net to modify, change, supplement, alter, or amend the Lease, either orally or in writing, without Lender's prior written consent. Any attempt by Grantor to do any of the foregoing without Lender's prior written consent will be void and of no force and effect. At Lender's option, Grantor will deposit with Lender as further security all original documents relating to the Lease and the leasehold interest in the Property. Unless Grantor is in breach or default of any of the terms contained in this Deed of Trust, Lender will have no right to cancel, modify, change, supplement, alter or amend the leasehold interest. No estate in the Property, whether fee title to the leasehold premises, the leasehold estate, or any subleasehold estate, will merge without Lender express written consent; rather these estates will remain separate and distinct, even if there is a union of these estates in the landlord, Grantor, or a third party who purchases or otherwise acquires the estates. Grantor further agrees that if Grantor acquires all or a portion of the fee simple title, or any other leasehold or subleasehold title to the Property, that title will, at Lender's option, immediately become subject to the terms of this Deed of Trust, and Grantor will execute, deliver and record all documents necessary or appropriate to assure that such title is secured by this Deed of Trust. Notices Relating to the Lease, Grantor will promptly notify Lender in writing: (1) if Grantor is in default in the performance or observance of any of the terms, covenants, or conditions which Grantor is to perform or observe under the Lease; (2) if any event occurs which would constitute a default under the Lease; (3) if any notice of default is given to Grantor 6y the landlord under the Lease; (4) if, pursuant to the Lease, any proceeds received for the Property are deposited with someone other than Lender, whether received from any insurance on the Property or from the taking of any or all of the Property by eminent domain; and (5) if any arbitration or appraisal proceedings are requested or instituted pursuant to the Lease. Grantor agrees to provide Lender promptly with a copy of all written materials relating to any of the above and to provide Lender with such other information as Lender may reasonably request. Grantor agrees that promptly after the execution and delivery of this Deed of Trust, Grantor will notify the landlord under the Lease in writing of the execution and delivery of this Deed of Trust and of the name and address of Lender and will deliver a copy of this Deed of Trust to the landlord. Option to Cure Lease Default. Upon Lender's receipt of any written notice of Grantor's default under the Lease, Lender may, at Lender's option, cure such default, even though Grantor, or any party on behalf of Grantor, questions or denies the existence of such default or the nature of the default. Grantor expressly grants to Lender the absolute and immediate right to enter upon the Property to such extent and as often as Lender in it sale discretion deems necessary or desirable in order to prevent ar cure any such doef~aulltFb~ySGrantor. ~~g T. DUE ON SALE -CONSENT BY LENDER. Lender may, at Lender's option, declare immediately due a payable all-sumEsise~ure-if 6y~Ris ~eed"o 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 6y 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 6y 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 Idaho law. TAXES AND LIENS. Tho following provisions relating to the taxes and liens on the Property are part of this Deed of Trust: Payment. Grantor shall pay when due (and 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 peed of Trust, except for the lien of taxes and assessments not due and except as otherwise provided in this peed 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, sc 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 (15) 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 reasonable 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 Lander and shall satisfy any adverse judgment before enforcement against the Property. Grantor shall name Lander 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 (15) 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 Lander 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 far 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 't