Item A: Beam Development Purchase and Sale Agreement Terms

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conducted on or about the Premises and the Collateral in an amount as is reasonably acceptable to Beneficiary. All policies of insurance shall be placed with insurance companies satisfactory to Beneficiary and shall have attached thereto the standard form of Beneficiary clause, without contribution, in favor of Beneficiary and be delivered to and be held by said Beneficiary, which policy shall provide that no cancellation, modification, termination or lapse thereof shall be effective until at least 30 days after receipt by Beneficiary of written notice thereof. This Deed of Trust shall operate as an assignment to Beneficiary of said policies, whether delivered or not. (b)Grantor shall provide evidence of fully paid insurance at least 15 days prior to the expiration date of any insurance policy. Upon the failure of Grantor to provide the aforesaid insurance, Beneficiary shall have the option (but not the duty) to procure and maintain such insurance or a Beneficiary interest policy without notice to Grantor. Any sums so expended by Beneficiary shall at once become indebtedness owing from Grantor to Beneficiary and shall immediately become due and payable by Grantor with interest thereon, to the extent legally enforceable. The following notice is given pursuant to ORS 746.201: WARNING Unless Grantor provides Beneficiary with evidence of the insurance coverage as required herein, Beneficiary may purchase insurance at Grantor's expense to protect Beneficiary's interest. This insurance may, but need not, also protect Grantor's interest. If the collateral becomes damaged, the coverage Beneficiary purchases may not pay any claim Grantor makes or any claim made against Grantor. Grantor may later cancel this coverage by providing evidence that Grantor has obtained property coverage elsewhere. Grantor is responsible for the cost of any insurance purchased by Beneficiary. The cost of this insurance may be added to the indebtedness secured hereby. If the cost is added to the indebtedness secured hereby, the interest rate on the indebtedness secured hereby will apply to this added amount. The effective date of coverage may be the date the prior coverage lapsed or the date Grantor failed to provide proof of coverage. The coverage Beneficiary purchases may be considerably more expensive than insurance Grantor can obtain on Grantor's own and may not satisfy any need for property damage coverage or any mandatory liability insurance requirements imposed by applicable law. If Beneficiary acquires title to the Premises by foreclosure proceedings or otherwise, any unearned premiums on any hazard insurance covering the Premises are hereby assigned to and shall belong to Beneficiary. If at any time during the term of this Deed of Trust, any insurance policies shall be cancelled and returned premiums available, these returned premiums shall be retained by Beneficiary to the extent required to reimburse Beneficiary for any sums advanced by Beneficiary to purchase insurance required by this section and the balance may be used by Beneficiary to satisfy any other defaults by Grantor hereunder. Any rights of Beneficiary to any insurance proceeds shall in no way be affected or impaired by reason of the fact that Beneficiary may have instituted foreclosure proceedings hereunder. Upon default hereunder and demand by Beneficiary, Grantor shall pay to Beneficiary an amount each month equal to one-twelfth of the annual premium due for all such insurance. Such payment shall be added to the Funds (as provided in Section 1.3 hereof) and be applied to pay such insurance premiums when they shall become due and payable. 1.6Distribution of Insurance Proceeds. (a)In the event of either a Partial Loss or Total Loss, as defined below, all insurance proceeds and rights of action related to the loss are hereby assigned to Beneficiary. Grantor agrees to execute such further assignments to such proceeds and rights of action as - 47 -