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<br />DEED OF TRUST PAGE 2 <br />SPONSOR LOAN (COUNTY) <br />the address of which is 920 Fifth Avenue, Suite 1200, Seattle, Washington, 98104, and its <br />successors in trust and assigns (“Trustee”), and HOPESOURCE, a Washington nonprofit <br />corporation, the mailing address of which is 606 West 3 rd Avenue, Ellensburg, WA 98926 <br />(“Beneficiary”). <br /> <br />1. Grant. Grantor hereby bargains, sells and conveys to Trustee in trust for the benefit <br />of Beneficiary, with power of sale, the real property located in Kittitas County, Washington <br />described on Exhibit A attached hereto and incorporated herein by reference (the “Property”), <br />together with all tenements, privileges, reversions, remainders, irrigation and water rights and stock, <br />oil and gas rights, royalties, minerals and mineral rights, hereditaments and appurtenances belonging, <br />or in any way pertaining to, the Property, and the rents issues and profits thereof. Said Property is <br />not used principally, or at all, for agricultural or farming purposes. <br /> <br />2. Obligations Secured. This deed is given for the purpose of securing payment in the <br />amount of Seven Hundred Fifty Thousand and No/100 Dollars ($750,000.00) according to the terms <br />of a Promissory Note (Sponsor Loan – County Funds) (the “Note”) and the Loan Agreement <br />(Sponsor Loan – County Funds) (“Loan Agreement”) each of even date herewith, payable by <br />Grantor to the Beneficiary including all renewals, modifications and extensions thereof. <br /> <br /> 3. Lien Priority. This Deed of Trust shall be in a subordinate lien priority position <br />against the Property. Beneficiary consents to the refinancing of any loan with a higher lien priority <br />than this Deed of Trust, and Beneficiary agrees to subordinate this Deed of Trust to any such <br />refinanced loan. <br /> <br /> 4. Protection of Security. To protect the security of this Deed of Trust, Grantor <br />covenants and agrees: <br /> <br />4.1. To keep the Property in good condition and repair; to permit no waste thereof; <br />to complete any building, structure or improvement thereon which may be damaged or destroyed; <br />and to comply with all laws, ordinances, conditions and restrictions affecting the Property. <br /> <br />4.2. To pay before delinquent all lawful taxes and assessments upon the <br />Property; and to keep the Property free and clear of all other charges, liens or encumbrances <br />impairing the security of this Deed of Trust. <br /> <br /> 4.3. To keep all buildings now or hereafter on the Property continuously insured <br />against loss by fire or other hazards in an amount not less than the replacement cost of the Property. <br /> <br />4.4. To defend any action or proceeding purporting to affect the security hereof <br />or the rights or powers of Beneficiary or Trustee, and to pay all costs and expenses, including <br />reasonable costs of title search and attorneys’ fees in a reasonable amount, in any such proceeding <br />and in any suit brought by Beneficiary to foreclose this Deed of Trust. <br />