Document:

Exhibit 10.28
This Promissory Note has not been registered under the Securities Act of 1933 or
any state securities laws. This Promissory Note may not be sold, assigned, or
otherwise negotiated to any person unless pursuant to an effective registration
statement filed under the Securities Act of 1933 and applicable state securities
laws, or unless Borrower receives an opinion of counsel, in form and from
counsel acceptable to Borrower, that the sale, assignment, or other negotiation
is exempt from the registration requirements of the Securities Act of 1933 and
applicable state securities laws.

                                 PROMISSORY NOTE

$1,700,000.00                                                   November 1, 2001

This Promissory Note ("Note") is made by Portland Brewing Company, an Oregon
corporation ("Borrower"), in favor of MacTarnahan Limited Partnership, an Oregon
limited partnership ("Lender").

1.       Payment. Borrower promises to pay to the order of Lender the principal
         amount of $1,700,000.00, together with interest on the unpaid principal
         amount from the date of this Note, as follows:

         (a)      on December 1, 2001 - and on the same day of each of the
                  following 34 months - $15,000.00 together with accrued
                  interest;

         (b)      on April 10, 2002 - and on the same day of each following year
                  until the entire principal amount, together with accrued
                  interest, has been paid in its entirety - $35,000.00;

         (c)      on July 10, 2002 - and on the same day of each following year
                  until the entire principal amount, together with accrued
                  interest, has been paid in its entirety - $35,000.00; and

         (d)      on November 1, 2004, the entire unpaid principal amount
                  together with accrued interest.

2.       Variable Interest Rate.

         (a)      The interest rate on this Note is subject to change from time
                  to time based on changes in an independent index which is the
                  annual interest rate, adjusted daily, published from time to
                  time in The Wall Street Journal (Western Edition) as the
                  "Prime Rate" in the "Money Rates" section, as of any date of
                  determination (the "Index"). If the Index becomes unavailable
                  during the term of this loan, Lender may designate a
                  substitute index after notice to Borrower. Lender will tell
                  Borrower the current index rate upon Borrower's request. The
                  interest rate change will not occur more often than each day.
                  The Index currently is 5.50% per

1 - PROMISSORY NOTE
<PAGE>
                  annum. The interest rate to be applied to the unpaid principal
                  balance of this Note will be at a rate of 1.25 percentage
                  points over the Index, resulting in an initial rate of 6.75%
                  per annum.

         (b)      The annual interest rate for this Note is computed on a
                  365/360 basis; that is, by applying the ratio of the annual
                  interest rate over a year of 360 days, multiplied by the
                  outstanding principal balance, multiplied by the actual number
                  of days the principal balance is outstanding.

3.       Place of Payments. All payments under this Note will be made to Harmer
         Mill & Logging Supply Co., Lender's general partner, at 11416 SW
         Lynnridge Avenue, Portland, Oregon 97225, or to any other person or any
         other address that Lender may designate by notice to Borrower.

4.       Application of Payments.

         (a)      All payments made under Section 1(a) and all prepayments will
                  apply as follows:

                  (1)      first to any costs and expenses due to Lender;

                  (2)      then to accrued interest to date of payment; and

                  (3)      then to the unpaid principal amount; and

         (b)      All payments made under Section 1(b) and Section 1(c) will
                  apply as follows:

                  (1)      first to any costs and expenses due to Lender; and

                  (2)      then to the unpaid principal amount.

5.       Prepayments. Borrower may prepay a part or all of the unpaid principal
         amount at any time. Excess payments or prepayments will not be credited
         as future scheduled payments required by this Note.

6.       Cash Flow Reviews. On or about January 15, April 15, July 15, and
         October 15 of each year until the entire principal amount, together
         with accrued interest, has been paid in its entirety, the president of
         Borrower will meet with Lender to review the cash flow situation of
         Borrower.

7.       Security. The obligations of Borrower under this Note are secured by
         the Security Agreement dated as of the date of this Note between
         Borrower and Lender (the "Security Agreement").

8.       Events of Default. Each of the following is an event of default under
         this Note:

         (a)      Borrower fails to make any payment required by this Note
                  within 20 days after Lender notifies Borrower of the failure
                  to make the payment when due;

2 - PROMISSORY NOTE
<PAGE>
         (b)      Borrower voluntarily dissolves or ceases to exist, or any
                  final and nonappealable order or judgment is entered against
                  Borrower ordering its dissolution;

         (c)      Borrower fails to pay, becomes insolvent or unable to pay, or
                  admits in writing an inability to pay Borrower's debts as they
                  become due, or makes a general assignment for the benefit of
                  creditors;

         (d)      a proceeding with respect to Borrower is commenced under any
                  applicable law for the benefit of creditors, including but not
                  limited to any bankruptcy or insolvency law, or an order for
                  the appointment of a receiver, liquidator, trustee, custodian,
                  or other officer having similar powers over Borrower is
                  entered; and

         (e)      an event of default occurs under the Security Agreement.

9.       Remedies. On and after an event of default under this Note, Lender may
         exercise the following remedies, which are cumulative and which may be
         exercised singularly or concurrently:

         (a)      upon notice to Borrower, the right to accelerate the due dates
                  under this Note so that the unpaid principal amount, together
                  with accrued interest, is immediately due in its entirety;

         (b)      any remedy available to Lender under the Security Agreement;
                  and

         (c)      any other remedy available to Lender at law or in equity.

10.      Amendment. This Note may be amended only by a written document signed
         by the party against whom enforcement is sought.

11.      Waiver.

         (a)      Borrower waives demand, presentment for payment, notice of
                  dishonor or nonpayment, protest, notice of protest, and lack
                  of diligence in collection, and agrees that Lender may extend
                  or postpone the due date of any payment required by this Note
                  without affecting Borrower's liability.

         (b)      No waiver will be binding on Lender unless it is in writing
                  and signed by Lender. Lender's waiver of a breach of a
                  provision of this Note will not be a waiver of any other
                  provision or a waiver of a subsequent breach of the same
                  provision.

12.      Severability. If a provision of this Note is determined to be
         unenforceable in any respect, the enforceability of the provision in
         any other respect and of the remaining provisions of this Note will not
         be impaired.

13.      Governing Law. This Note is governed by the laws of the State of
         Oregon, without giving effect to any conflict-of-law principle of any
         jurisdiction.

3 - PROMISSORY NOTE
<PAGE>
14.      Venue. Any action or proceeding arising out of this Note will be
         litigated in courts located in Multnomah County, Oregon. Borrower
         consents and submits to the jurisdiction of any local, state, or
         federal court located in Multnomah County, Oregon.

15.      Attorney's Fees. If any arbitration or litigation is instituted to
         interpret, enforce, or rescind this Note, including but not limited to
         any proceeding brought under the United States Bankruptcy Code, the
         prevailing party on a claim will be entitled to recover with respect to
         the claim, in addition to any other relief awarded, the prevailing
         party's reasonable attorney's fees, costs, and expenses incurred at
         arbitration, at trial, on appeal, and on petition for review, as
         determined by the arbitrator or court.

16.      Costs and Expenses. If an event of default under this Note occurs and
         Lender does not institute any arbitration or litigation, Borrower will
         pay to Lender, upon Lender's demand, all reasonable costs and expenses,
         including but not limited to attorney's fees and collection fees,
         incurred by Lender in attempting to collect the indebtedness evidenced
         by this Note.

                                    Borrower:

                                                     Portland Brewing Company

                                                     /s/  Charles A. Adams
                                                     ---------------------------
                                                     By:  Charles A. Adams
                                                     Its:  President

4 - PROMISSORY NOTE
<PAGE>
                               SECURITY AGREEMENT

This Security Agreement ("Agreement") is between MacTarnahan Limited
Partnership, an Oregon limited partnership ("Secured Party"), and Portland
Brewing Company, an Oregon corporation ("Debtor").

Section  1        DEFINITIONS

     Unless defined elsewhere in this Agreement, capitalized terms used in this
     Agreement will have the meanings ascribed to them in the attached Appendix
     A. Unless the context indicates otherwise, terms used in this Agreement
     that are identified in the Uniform Commercial Code will have the meanings
     ascribed to them in the Uniform Commercial Code.

Section  2        SECURITY INTEREST

     2.1  Grant. As security for the full and prompt performance of the
          Obligations, Debtor grants Secured Party a security interest in the
          Collateral.

     2.2  Perfection. Contemporaneously with the signing and delivery of this
          Agreement, Debtor is executing and delivering to Secured Party such
          financing statements and other documents, paying such filing,
          recording and other fees, and doing or causing to be done any other
          acts or things that Security Party has deemed reasonably necessary to
          perfect, maintain, and continue Secured Party's security interest in
          the Collateral.

Section  3        REPRESENTATIONS AND WARRANTIES OF DEBTOR

     Debtor represents and warrants to Secured Party as follows:

     3.1  Organization. Debtor is a corporation validly existing under the laws
          of the State of Oregon.

     3.2  Authority. Debtor has full power and authority to sign and deliver
          this Agreement and to perform all of Debtor's obligations under this
          Agreement.

     3.3  Ownership. Debtor has good title to the Collateral, free from all
          Encumbrances except Permitted Encumbrances.

     3.4  Financial Statements. Debtor has delivered to Secured Party financial
          statements for Debtor's fiscal year ended December 31, 2000, and for
          the quarterly periods ended March 31, 2001 and June 30, 2001. The
          financial statements fairly present the financial condition and the
          results of operations, changes in stockholders' or owners' equity, and
          cash flow of Debtor as at the dates specified and are consistent with
          the books of account and records of Debtor.

1 - SECURITY AGREEMENT
<PAGE>
Section  4        COVENANTS OF DEBTOR

     Debtor covenants to Secured Party that Debtor will perform the following
     obligations and observe the following conditions until the Obligations are
     fully performed:

     4.1  Perfection of Security Interest. Debtor will execute and deliver to
          Secured Party such financing statements and other documents, pay such
          filing, recording, and other fees, and do or cause to be done any
          other acts or things that Security Party reasonably requires to
          perfect, maintain, and continue Secured Party's security interest in
          the Collateral.

     4.2  Encumbrances. Debtor will keep the Collateral free from all
          Encumbrances except Permitted Encumbrances.

     4.3  Financial Information. Debtor will deliver to Secured Party such
          financial information related to Debtor that Secured Party may
          reasonably request from time to time. The financial information will
          present fairly the financial condition of Debtor as at the dates
          specified and be consistent with the books of account and records of
          Debtor.

     4.4  Quarterly Cash Flow Reviews. On or about January 15, April 15, July
          15, and October 15 of each year, the president of Debtor will meet
          with Secured Party to review the cash flow situation of Borrower.

     4.5  Inspection. At Secured Party's request, Debtor will permit Secured
          Party to inspect the Collateral and inspect, audit, and copy all of
          Debtor's books of account and records.

     4.6  Notification. Debtor will promptly notify Secured Party of any Event
          of Default.

Section  5        DEFAULT AND REMEDIES

     5.1  Events of Default. Each of the following events is an Event of
          Default:

          (a)  Debtor fails to make any payment Obligation within 20 days after
               Secured Party notifies Debtor of the failure to make the payment
               when due;

          (b)  Debtor fails to perform any non-payment Obligation within 30 days
               after Secured Party notifies Debtor of the failure to perform the
               Obligation when due;

          (c)  Debtor breaches any covenant made in this Agreement and fails to
               cure the breach within 30 days after Secured Party notifies
               Debtor of the breach;

          (d)  any representation or warranty made by Debtor in this Agreement
               is found to have been untrue or misleading in any material
               respect as of the date of this Agreement;

          (e)  Debtor voluntarily dissolves or ceases to exist, or any final and
               nonappealable order or judgment is entered against Debtor
               decreeing its dissolution;

2 - SECURITY AGREEMENT
<PAGE>
          (f)  Debtor fails to pay, becomes insolvent or unable to pay, or
               admits in writing an inability to pay Debtor's debts as they
               become due, or makes any assignment for the benefit of creditors;
               and

          (g)  a proceeding with respect to Debtor is commenced under any
               applicable bankruptcy, insolvency, reorganization, receivership,
               readjustment-of-debt, or similar law, or an order for the
               appointment of a receiver, liquidator, trustee, custodian, or
               other officer having similar powers over Debtor or the Collateral
               is entered, or a warrant, attachment, execution, or similar
               process against any Collateral is issued.

5.2       Remedies. On and after an Event of Default, Secured Party may exercise
          the following remedies, all of which are cumulative and all of which
          may be exercised singularly or concurrently:

          (a)  the right to declare any of the Obligations immediately due and
               performable;

          (b)  the right to notify the account debtors of Debtor and the
               obligors on instruments in favor of Debtor of the security
               interest created by this Agreement and to require the account
               debtors and the obligors to make payments to Secured Party;

          (c)  the right to enforce, settle, compromise, extend, postpone, or
               release any account of Debtor and any instrument in favor of
               Debtor;

          (d)  the right to take possession of the Collateral without judicial
               process or notice, and for that purpose to enter any premises
               where Secured Party reasonably believes that any Collateral may
               be;

          (e)  the right to require Debtor to assemble the Collateral and make
               it available to Secured Party at a place designated by Secured
               Party which is reasonably convenient to both parties;

          (f)  the right to sell, lease, or otherwise dispose of the Collateral
               by one or more public or private proceedings;

          (g)  any remedy available to Secured Party under the Uniform
               Commercial Code; and

          (h)  any other remedy available to Secured Party at law or in equity.

5.3       Public Proceedings. Disposition of any Collateral by public proceeding
          is conclusively presumed to be commercially reasonable if:

          (a)  Secured Party gives Debtor 10 days' notice of the time and place
               of the proceeding;

3 - SECURITY AGREEMENT
<PAGE>
          (b)  the proceeding occurs during regular business hours;

          (c)  the proceeding is held in a county where any Collateral is
               located or in which Debtor has a place of business; and

          (d)  the proceeding is conducted by auction, with or without a
               professional auctioneer.

5.4       Private Proceedings. Notification of the disposition of any Collateral
          by private proceeding is reasonable if Secured Party gives Debtor 5
          days' notice of the time after which any private disposition is to be
          made.

5.5       Attorney-in-Fact. Debtor covenants to Secured Party that Debtor will
          execute and deliver to Secured Party any assignments, waivers, and
          other documents and do or cause to be done any other acts or things
          that Security Party reasonably requires to sell, lease, or otherwise
          dispose of any Collateral on and after an Event of Default. Debtor
          irrevocably appoints Secured Party to be Debtor's attorney-in-fact to
          execute the assignments, waivers, and other documents on behalf of
          Debtor and in Debtor's name.

5.6       Names and Marks. Debtor grants Secured Party a fully-paid unrestricted
          license and right to use Debtor's tradenames, trademarks, labels,
          advertising materials, patents, trade secrets, copyrights, and other
          similar property to prepare, process, and advertise the Collateral for
          sale, lease, or other disposition on and after the occurrence of an
          Event of Default and until all of the Obligations are fully performed.

5.7       Invalidated Payments. If Debtor makes a payment to Secured Party or if
          Secured Party enforces a security interest to satisfy an Obligation
          and the payment or the proceeds from the enforcement are subsequently
          declared to be fraudulent or preferential or are otherwise set aside
          or invalidated, the Obligation will be revived as if the payment or
          enforcement had not occurred.

5.8       Performance by Secured Party. Secured Party may perform any Obligation
          if Debtor fails to do so or if Debtor fails to give Secured Party
          reasonable assurance that it will do so. Debtor will pay Secured Party
          upon Secured Party's demand all costs and expenses, including but not
          limited to reasonable attorney's fees, incurred by Secured Party in
          connection with the performance. Secured Party's right to perform the
          Obligations is in addition to any remedy available to Secured Party
          under this Agreement.

Section  6        RELEASE, INDEMNIFICATION, AND WAIVERS

6.1       Release and Indemnification. Debtor releases and will defend and
          indemnify Secured Party from and against any and all claims, actions,
          proceedings, damages, liabilities, and expenses of every kind,
          including but not limited to reasonable attorney's fees, whether known
          or unknown, resulting from or arising out of:

4 - SECURITY AGREEMENT
<PAGE>
          (a)  any act or thing that Secured Party does to perfect, maintain,
               and continue Secured Party's security interest in the Collateral;
               or

          (b)  the exercise by Secured Party of any remedy available to Secured
               Party under this Agreement, without regard to cause or the
               negligence of Secured Party or any other person.

6.2       Waiver by Debtor. Debtor waives demand, presentment for payment,
          notice of dishonor or nonpayment, protest, notice of protest, and lack
          of diligence in collection, and agrees that Secured Party may amend
          any agreement evidencing any of the Obligations and extend or postpone
          the time of performance of the Obligations without affecting Debtor's
          liability.

6.3       No Waiver by Secured Party. Secured Party's failure to exercise any
          remedy under this Agreement will not be considered a waiver by Secured
          Party of Secured Party's right to exercise the remedy. No waiver will
          be binding on Secured Party unless it is in writing and signed by
          Secured Party. Secured Party's waiver of a breach of a provision of
          this Agreement will not be considered a waiver of any other provision
          or a waiver of a subsequent breach of the same provision.

Section  7        GENERAL

7.1       No Assignment. Debtor may not assign or delegate any of Debtor's
          rights or obligations under this Agreement to any person without the
          prior written consent of the Secured Party, which Secured Party may
          withhold in Secured Party's sole discretion. An assignment includes
          but is not limited to a transfer or encumbrance - or series of related
          transfers or encumbrances - of 50% or more of the shares or other
          ownership interests of Debtor, regardless of whether the transfer or
          encumbrance occurs voluntarily or involuntarily, by operation of law,
          or because of any act or occurrence.

7.2       Binding Effect. This Agreement will be binding on the parties and
          their respective heirs, personal representatives, successors, and
          permitted assigns, and will inure to their benefit.

7.3       Amendment. This Agreement may be amended only by a written document
          signed by the party against whom enforcement is sought.

7.4       Notices. All notices or other communications required or permitted by
          this Agreement must be in writing and are considered delivered:

          (a)  upon actual receipt if delivered personally or by an overnight
               delivery service; or

          (b)  at the end of the third business day after the date of deposit in
               the United States mail, postage pre-paid, certified, return
               receipt requested, to the parties at the following addresses:

5 - SECURITY AGREEMENT
<PAGE>
           To Secured Party:                      To Debtor:

           Harmer Mill & Logging Supply Co.       Portland Brewing Company
           11416 SW Lynnridge Avenue              2730 NW 31st Avenue
           Portland, Oregon  97225                Portland, Oregon  97210
                                                  Attn:  Charles A. Adams

7.5       Severabilty. If a provision of this Agreement is determined to be
          unenforceable in any respect, the enforceability of the provision in
          any other respect and of the remaining provisions of this Agreement
          will not be impaired.

7.6       Further Assurances. The parties will sign other documents and take
          other actions reasonably necessary to further effect and evidence this
          Agreement.

7.7       Attachments. Any exhibits, schedules, and other attachments referenced
          in this Agreement are part of this Agreement.

7.8       Remedies. The parties will have all remedies available to them at law
          or in equity. All available remedies are cumulative and may be
          exercised singularly or concurrently.

7.9       Governing Law. This Agreement is governed by the laws of the State of
          Oregon, without giving effect to any conflict-of-law principle of any
          jurisdiction.

7.10      Venue. Any action or proceeding arising out of this Agreement will be
          litigated in courts located in Multnomah County, Oregon. Each party
          consents and submits to the jurisdiction of any local, state, or
          federal court located in Multnomah County, Oregon.

7.11      Attorney's Fees. If any arbitration or litigation is instituted to
          interpret, enforce, or rescind this Agreement, including but not
          limited to any proceeding brought under the United States Bankruptcy
          Code, the prevailing party on a claim will be entitled to recover with
          respect to the claim, in addition to any other relief awarded, the
          prevailing party's reasonable attorney's fees, costs, and expenses
          incurred at arbitration, at trial, on appeal, and on petition for
          review, as determined by the arbitrator or court.

7.12      Entire Agreement. This Agreement contains the entire understanding of
          the parties regarding the subject matter of this Agreement and
          supersedes all prior and contemporaneous negotiations and agreements,
          whether written or oral, between the parties with respect to the
          subject matter of this Agreement.

7.13      Signatures. This Agreement may be signed in counterparts. A fax
          transmission of a signature page will be considered an original
          signature page. At the request of a party, the other party will
          confirm a fax-transmitted signature page by delivering an original
          signature page to the requesting party.

6 - SECURITY AGREEMENT
<PAGE>
          Dated effective:  November 1, 2001

                                       Secured Party:

                                       MacTarnahan Limited Partnership

                                       By:  Harmer Mill & Logging Supply Co.
                                       Its:  General Partner

                                       /s/ Robert M. MacTarnahan
                                       -------------------------
                                       By:  Robert M. MacTarnahan
                                       Its:  President

                                       Debtor:

                                       Portland Brewing Company

                                       /s/  Charles A. Adams
                                       -------------------------
                                       By:  Charles A. Adams
                                       Its:  President

7 - SECURITY AGREEMENT
<PAGE>
                                   APPENDIX A

                                   Definitions

"Collateral" means:

          (a)  all of Debtor's accounts, chattel paper, deposit accounts,
               documents, general intangibles (including but not limited to
               patents, patent applications, trademarks, trademark applications,
               tradenames, copyrights, copyright applications, and rights to sue
               and recover for past infringement of patents, trademarks, and
               copyrights), goods (including but not limited to consumer goods,
               equipment, fixtures, farm products, inventory, and vehicles),
               instruments, investment property, and letter-of-credit rights;

          (b)  all property of the types described in this definition that is
               acquired by Debtor after the signing and delivery of this
               Agreement;

          (c)  all increases, proceeds, products, and profits from the property
               described in this definition; and

          (d)  all of Debtor's books of account and records.

"Encumbrance" means any lien, mortgage, pledge, security interest, or other
encumbrance.

"Event of Default" means any event specified in Section 5.1.

"Obligations" means all of Debtor's obligations under:

          (a)  the Promissory Note dated as of the date of this Agreement made
               by Debtor in favor of Secured Party in the amount $1,700,000.00;
               and

          (b)  this Agreement.

"Permitted Encumbrances" means:

          (a)  an Encumbrance in favor of Provident Capital Group, Inc., or
               assignees, encumbering the property set forth on UCC-1 State
               Financing Statement # 480877, a copy of which is attached as
               Exhibit A-1;

          (b)  an Encumbrance in favor of Washington Mutual Bank doing business
               as Western Bank, or assignees, encumbering the property set forth
               on UCC-1 State Financing Statement # 481672, a copy of which is
               attached as Exhibit A-2;

          (c)  an Encumbrance in favor of Harmer Mill & Logging Supply Co. and
               MacTarnahan Limited Partnership, or assignees, encumbering the
               property set forth on UCC-1 State Financing Statement # 489386, a
               copy of which is attached as Exhibit A-3;

1 - APPENDIX A:  DEFINITIONS
<PAGE>
          (d)  an Encumbrance in favor of Saxer Brewing Company, or assignees,
               encumbering the property set forth on UCC-1 State Financing
               Statement # 500455, a copy of which is attached as Exhibit A-4;

          (e)  an Encumbrance in favor of Harmer Mill & Logging Supply Co.,
               MacTarnahan Limited Partnership, Robert MacTarnahan, Charles A.
               Adams, and Charles A. Adams Living Trust, or assignees,
               encumbering the property set forth on UCC-1 State Financing
               Statement # 508568, a copy of which is attached as Exhibit A-5;

          (f)  an Encumbrance in favor of Washington Mutual Bank doing business
               as Western Bank, or assignees, encumbering the property set forth
               on UCC-1 State Financing Statement # 542125, a copy of which is
               attached as Exhibit A-6;

          (g)  Encumbrances in favor of Capital Crossings Bank, or assignees,
               that result from Debtor's subsequent purchase of the real
               property located at 2730 NW 31st Avenue, Portland, Oregon,
               together with certain personal property, from Portland Brewing
               Building, L.L.C., and Debtor's subsequent assumption of a debt
               owed by Portland Brewing Building, L.L.C. to Capital Crossings
               Bank, but only to the extent that the Encumbrance does not
               encumber property that is not transferred to Debtor from Portland
               Brewing Building, L.L.C.;

          (h)  Encumbrances in favor of Washington Mutual Bank doing business as
               Western Bank, or assignees, that result from Debtor's subsequent
               purchase of the real property located at 2730 NW 31st Avenue,
               Portland, Oregon, together with certain personal property, from
               Portland Brewing Building, L.L.C., and Debtor's subsequent
               assumption of a debt owed by Portland Brewing Building, L.L.C. to
               Washington Mutual Bank doing business as Western Bank, but only
               to the extent that the Encumbrance does not encumber property
               that is not transferred to Debtor from Portland Brewing Building,
               L.L.C.;

          (i)  an Encumbrance in favor of GSI Lumonics encumbering leased
               equipment;

          (j)  Encumbrances in favor of Secured Party;

          (k)  Encumbrances arising by operation of law for taxes, assessments,
               or government charges not yet due;

          (l)  statutory Encumbrances for services or materials arising in the
               ordinary course of Debtor's business for which payment is not yet
               due; and

          (m)  nonconsensual Encumbrances incurred or deposits made in the
               ordinary course of Debtor's business for workers' compensation
               and unemployment insurance and other types of social security.

2 - APPENDIX A:  DEFINITIONSExhibit 10.27
RECORDING REQUESTED BY
AND WHEN RECORDED MAIL TO:

CAPITAL CROSSING BANK
101 Summer Street
Boston, MA 02110

Attn:  W. Kenneth Weidman, Jr.,
Senior Vice President

Capital Crossing Bank
Loan #1330021-10211
--------------------------------------------------------------------------------
                                      (Space above this line for Recorder's use)

NAME OF THE TRANSACTIONS AND DOCUMENT:
-------------------------------------

MODIFICATION TO DEED OF TRUST AND LOAN DOCUMENTS

FIRST PARTY:
-----------

1.       PORTLAND BREWING BUILDING, L.L.C.,
                      an Oregon limited liability company

2.       PORTLAND BREWING COMPANY, an Oregon corporation

3.       CAPITAL CROSSING BANK,
                      a Massachusetts chartered banking institution

SECOND PARTY:
------------

1.       PORTLAND BREWING BUILDING, L.L.C.,
                      an Oregon limited liability company

2.       PORTLAND BREWING COMPANY, an Oregon corporation

3.       CAPITAL CROSSING BANK,
                      a Massachusetts chartered banking institution

Assessor's Tax Account Number(s) for the Property:
R94129-1150 and R94129-1151.
<PAGE>
RECORDING REQUESTED BY
AND WHEN RECORDED MAIL TO:

CAPITAL CROSSING BANK
101 Summer Street
Boston, MA 02110

Attn:  W. Kenneth Weidman, Jr.,
Senior Vice President

Capital Crossing Bank
Loan #1330021-10211
--------------------------------------------------------------------------------
                                                (Space above for Recorder's use)

                                 MODIFICATION TO
                                 ---------------
                        DEED OF TRUST AND LOAN DOCUMENTS
                        --------------------------------

DATED:            September 19, 2001

BY:               PORTLAND BREWING BUILDING, L.L.C.,
                  an Oregon limited liability company
                  whose address is:
                  2730 NW 31st Avenue
                  Portland, OR 97210                                 BORROWER

AND:              PORTLAND BREWING COMPANY, an Oregon corporation
                  whose address is:
                  2730 NW 31st Avenue
                  Portland, OR 97210                                 TRANSFEREE

IN FAVOR
OF:               CAPITAL CROSSING BANK,
                  a Massachusetts chartered banking institution
                  whose address is:
                  c/o 101 Summer Street
                  Boston, MA 02110
                  Attn:  W. Kenneth Weidman, Jr.,
                         Senior Vice President                       LENDER

                  By assignment from BANK OF AMERICA NATIONAL TRUST & SAVINGS
ASSOCIATION, as the original lender/payee (the "Original Lender"), Lender holds
the loan and security instruments in connection with a secured mortgage loan
made to Borrower in the original principal amount of $1,200,000 (the "Loan")
secured by certain property in Multnomah County, in the State of Oregon (the
"Property"), known as "2730 NW 31st Avenue, Portland, Oregon," and described as
follows:

                                       1
<PAGE>
                  The Real Property described in that certain Commercial Deed of
                  Trust, Security Agreement and Fixture Filing with Assignment
                  of Leases and Rents by Borrower as grantor in favor of
                  Original Lender as beneficiary, recorded on October 22, 1996,
                  as Recorders Fee No. 96159866, Official Records of Multnomah
                  County, Oregon (the "Trust Deed"). The Property Tax Account(s)
                  for such property is/are: R94129-1150 and R94129-1151.

                  Borrower has requested Lender's consent to a transfer of the
Property to Transferee in consideration of the issuance of certain stock of
Transferee to Borrower.

                  The Loan was made pursuant to a Standing Loan Agreement
between Original Lender and Borrower dated as of October 18, 1996 ("Loan
Agreement"). The Loan is evidenced by a Promissory Note dated October 18, 1996
(the "Note"). The Loan is also evidenced or secured by: (i) the Trust Deed
referenced above, (ii) security interests created by the Trust Deed, and as may
be evidenced by financing statements filed with the Secretary of State of the
State of Oregon and in Multnomah County, (iii) certain Loan guaranty instruments
(each a "Guaranty" and, collectively, the "Guaranties"), each of which is named
a Guaranty of Payment and Performance, signed by each of MacTarnahan Limited
Partnership, an Oregon limited partnership ("MLP"), Electra Partners, Inc., an
Oregon corporation ("Electra"), Harmer Mill and Logging Supply Co., dba Harmer
Co., an Oregon corporation ("Harmer"), Peter F. Adams ("PFA"), Charles A. Adams
("CAA"), Howard M. Wall, Jr. ("HMW"), Patricia Mead Wall ("PMW"), Robert
MacTarnahan ("RMT"), and L & L Land, an Oregon general partnership ("L&L"), as
guarantors of the Loan (MLP, Electra, Harmer, PFA, CAA, HMW, PMW, RMT and L&L
are each a "Guarantor" and, collectively, the "Guarantors"), (iv) any opinion
letter from Borrower's counsel, and any other certificate or instrument signed
by Borrower and/or any Guarantor, that was delivered in connection with the Loan
(collectively, all of the foregoing, as supplemented, are the "Loan
Instruments"). In addition, Borrower and each Guarantor executed and delivered
to Lender a Certificate and Indemnity Agreement Regarding Building Laws and
Hazardous Substances (the "Indemnity Agreement").

                  This MODIFICATION TO DEED OF TRUST AND ASSIGNMENT OF RENTS AND
LEASES ("Agreement") is being executed to evidence Lender's consent to the
transfer to Transferee and to the continuation of the Loan on the Property,
pursuant to the terms and conditions set forth herein.

                  NOW, THEREFORE, FOR VALUE RECEIVED, the undersigned hereby
agree with Lender as follows:

         1. Incorporation of Recitals; Certain Definitions. As used below, the
"Property" means the "Property" as defined and described in the Trust Deed. Any
capitalized terms not otherwise defined in this Agreement shall have the meaning
set forth in the Trust Deed. The recitals are incorporated as part of the body
of this instrument.

         2. Consent to Transfer to Transferee; No Release. Upon satisfaction of
the terms and conditions of this Agreement, Lender hereby consents to and
approves the transfer of the

                                       2
<PAGE>
Property and Borrower's interest in any additional Collateral as described in
the Trust Deed to Transferee, as encumbered by the lien, security interests,
fixture filing, and assignment of leases and rents as set forth in the Trust
Deed, without affecting in any manner the restrictions and requirements of the
Trust Deed and other Loan Instruments with respect to any further or additional
transfer (other than to Transferee). Except for Lender's interests under the
Loan Instruments, there will be no other or additional mortgage, deed of trust,
or other subordinate lien or financial encumbrance against the Property.
Notwithstanding any provision to the contrary in the Trust Deed or any other
agreement, any future or additional transfer or assignment by Transferee or in
the beneficial interests in Transferee will be subject to the provisions of the
Trust Deed related to "Accelerating Transfers" (Section 17) and shall permit
Lender to adjust the interest rate on the Loan and charge processing and
assumption fees and charges for reimbursements of costs, in the same manner as
if the transfer of the Property were by the original grantor under the Trust
Deed.

         Contemporaneously herewith, Borrower and/or Transferee have made (or
will make) an additional payment to Lender in reduction of the principal balance
of the Note, in the amount of ONE HUNDRED THOUSAND AND NO/100THS DOLLARS
($100,000,00). Such payment will be in addition to the regular monthly payments
that are payable on the Note, and will not affect any other monthly payment or
installment required under the terms of the Note (except only as it may reduce
the principal balance remaining). Payment of the amount under this paragraph has
been mutually agreed to between the parties as a "one time only" principal
reduction that Lender is accepting without the imposition of a prepayment
penalty or prepayment charge and notwithstanding any other limitation in the
Note concerning prepayment, which remain in full force and effect as to any and
all payments (other than the payment of $100,000 described above).

         Effective at closing of the transfer to Transferee evidenced by the
recordation of the deed conveying fee title to Transferee, Transferee assumes
and agrees to perform and comply with all of the terms and conditions in the
Loan Instruments and Indemnity Agreement (as modified by this Agreement), in the
same manner as if Transferee had been the original maker and obligor of the Loan
Instruments and Indemnity Agreement (as modified by this Agreement). Neither
Borrower nor any Guarantor is released from the performance of any obligation
under the Loan Instruments or Indemnity Agreement. Borrower, Transferee, and
each Guarantor ratify and confirm that they are jointly and severally,
personally liable under the Note and other Loan Instruments and under the
Indemnity Agreement.

         3. Maturity Date. The maturity date of the Note, and for the
obligations secured by the Trust Deed, remains unchanged and will continue to be
November 1, 2003.

         4. Documents Delivered in Connection with Transfer. In connection with
such Loan Instruments, Indemnity Agreement and transfers, Borrower and
Transferee and each Guarantor are executing this Agreement, and Transferee is
executing one or more additional documents in favor of Lender (all of such
documents and this Agreement are the "Additional Documents"). The Additional
Documents will include UCC-1 and UCC-1A financing statements in the name of
Transferee as debtor ("UCC Financing Statements"), which will be filed in
connection with the execution of this Agreement The undersigned do hereby
warrant and acknowledge to Lender that the Loan Instruments, Indemnity Agreement
and the Additional

                                       3
<PAGE>
Documents in favor of Lender are good and valid and in all respects free from
all defenses as of the date hereof, both in law and in equity, and that any
person acquiring or purchasing such Loan Instruments, Indemnity Agreement and/or
Additional Documents in connection therewith or otherwise acquiring any interest
therein, may do so in reliance upon the truth of the matters herein recited.

         5. Fees, Costs and Title Insurance. To obtain Lender's consent and
facilitate this transaction, the parties have agreed to pay to Lender a
processing/assumption fee of $2,500, which will be paid on or before the date
this Agreement is recorded. The parties will be responsible for all costs
incurred in this transaction, including (without limitation) recording and
filing fees in connection with this transaction and Lender's reasonable
attorneys' fees (estimated at $1,350), in connection with this Agreement, the
Additional Documents, and the consummation of this transaction. Borrower and/or
Transferee will be responsible for paying the costs of endorsements to Lender's
mortgagee's title policy insuring the continued priority of the Trust Deed as
supplemented by this Agreement, as a first lien on the Property, and that such
title policy is not impaired by this Agreement. Such endorsements will be
obtained at the time of the recordation of this instrument. Transferee will
provide to Lender a certified true copy of the deed from Borrower to Transferee
and evidence of the filing of the UCC Financing Statements. The filed UCC
Financing Statements (or confirmation of filing) will be returned to Lender,
after they are filed in the appropriate office.

         6. Various State Law Provisions and Representations.

                  6.1 Purpose of Transaction. Each of Borrower, Guarantor and
Transferee warrants that it is engaging in this transaction exclusively for
business, commercial or investment purposes.

                  6.2 Oregon Statutory Notice Concerning Insurance. Effective
January 1, 1996, Chapter 313 of Oregon Laws 1994 amends ORS 746.201 to require
that in loans in which the lender has the right to purchase insurance in the
event the borrower fails to carry insurance, the loan document must contain a
warning in substantially the following form in 10-point type:

                                    "WARNING

                           "Unless you provide us with evidence of the insurance
                  coverage as required by our contract or loan agreement, we may
                  purchase insurance at your expense to protect our interest.
                  This insurance may, but need not, also protect your interest.
                  If the collateral becomes damaged, the coverage we purchase
                  may not pay any claim you make or any claim made against you.
                  You may later cancel this coverage by providing evidence that
                  you have obtained property coverage elsewhere.

                           "You are responsible for the cost of any insurance
                  purchased by us. The cost of this insurance may be added to
                  your contract or loan balance. If the cost is added to your
                  contract or loan balance, the interest rate on the underlying
                  contract or loan

                                       4
<PAGE>
                  will apply to this added amount. The effective date of
                  coverage may be the date your prior coverage lapsed or the
                  date you failed to provide proof of coverage.

                           "The coverage we purchase may be considerably more
                  expensive than insurance you can obtain on your own and may
                  not satisfy any need for property damage coverage or any
                  mandatory liability insurance requirements imposed by
                  applicable law."

                  6.3 Oregon Statutory Notice Concerning Written Agreements.
UNDER OREGON LAW, MOST AGREEMENTS, PROMISES AND COMMITMENTS MADE BY LENDERS
AFTER OCTOBER 3, 1989 CONCERNING LOANS AND OTHER CREDIT EXTENSIONS WHICH ARE NOT
FOR PERSONAL, FAMILY OR HOUSEHOLD PURPOSES OR SECURED SOLELY BY THE BORROWER'S
RESIDENCE MUST BE IN WRITING, EXPRESS CONSIDERATION AND BE SIGNED BY LENDERS TO
BE ENFORCEABLE.

         7. Secured Obligations. The Loan Instruments, as supplemented, secure
the prompt payment and performance, when due, of all obligations of the
maker/borrower/grantor under all such Loan Instruments. Each of Borrower, the
Guarantors, and Transferee affirms and reaffirms to Lender each of the
representations, warranties, covenants and agreements of the
maker/borrower/grantor set forth in the Loan Instruments, as supplemented, with
the same force and effect as if each were separately stated in and made as of
the date of this Agreement. Each person liable on the Indemnity Agreement and
Transferee affirms and reaffirms to Lender each of the representations,
warranties, covenants and agreements of the indemnitor set forth in the
Indemnity Agreement, as supplemented, with the same force and effect as if each
were separately stated in and made as of the date of this Agreement.

         8. General Provisions.

                  8.1 Representations of Parties to Lender. Borrower, Guarantors
and Transferee (hereinafter sometimes referred to individually as an "Obligor"
and collectively as "Obligors") each hereby ratifies, affirms, reaffirms,
acknowledges, confirms and agrees that: (i) the original Note, Trust Deed, and
other Loan Instruments and Indemnity Agreement (as modified by this Agreement)
represent the legal, valid, binding and enforceable obligations of such parties
(as applicable); (ii) the balance of the Loan as of August 20, 2001 is/was
$1,078,853.16, plus accrued but unpaid interest; (iii) there are no existing
claims, defenses, personal or otherwise, or rights of setoff whatsoever
available to such parties with respect to any of such instruments or the Loan;
and (iv) no event has occurred and no condition exists which would constitute a
default under such instruments or this Agreement, either with or without notice
or lapse of time, or both.

                  8.2 Ratification. Except as specifically modified pursuant to
this Agreement, all the terms and provisions of the Loan Instruments and
Indemnity Agreement are hereby ratified and reaffirmed.

                                       5
<PAGE>
                  8.3 No Relinquishment of Liens. This Agreement shall in no way
act as a release or relinquishment of the original liens, security interests and
rights (collectively called the "Liens") securing payment of the Note, as
amended, including without limitation the Liens created by the Trust Deed. The
Liens are hereby renewed, extended, ratified and confirmed in all respects.

                  8.4 Full Force and Effect. This Agreement and the Loan
Instruments and Indemnity Agreement are in full force and effect, and nothing
contained in this Agreement shall be construed as modifying such documents,
except as specifically provided pursuant to this Agreement.

                  8.5 Applicable Law. This Agreement has been executed and
delivered in the state of Oregon. The law of the State of Oregon shall be
applicable for the purpose of construing and determining the validity of this
Agreement.

                  8.6 Counterparts. This Agreement may be executed in
counterparts, each of which shall be deemed an original, but all of which
together shall constitute one and the same Agreement.

                  8.7 Waivers; Transferability. Each of the Obligors hereby
waives notice of any and every sale, pledge, assignment or transfer of said Loan
Instruments, Indemnity Agreement and other Additional Documents. This Agreement
is made for the purpose of better enabling the legal holder or holders of said
Loan Instruments, Indemnity Agreement and/or Additional Documents to sell,
pledge or otherwise dispose of same, freely at any time, and so as to insure the
transferee or transferees, pledgee or pledgees thereof against any claim of
defense thereto as of the date hereof by any Obligor thereon, and its heirs,
personal representatives or assigns.

                  8.8 Venue and Jurisdiction. In connection with the Loan
Instruments, the Indemnity Agreement, this Agreement and the other Additional
Documents, EACH OBLIGOR AND EACH OTHER PERSON NOW OR AT ANY TIME THEREAFTER
LIABLE, WHETHER PRIMARILY OR SECONDARILY, HEREUNDER HEREBY AGREES TO THE VENUE
AND JURISDICTION OF ANY COURT IN THE STATE OF OREGON REGARDING ALL ACTIONS,
PROCEEDINGS OR OTHER MATTERS ARISING DIRECTLY OR INDIRECTLY HEREUNDER, AND
HEREBY WAIVES ANY OBJECTION WHICH IT MAY HAVE BASED UPON LACK OF PERSONAL
JURISDICTION, IMPROPER VENUE OR FORUM NON CONVENIENS AND HEREBY CONSENTS TO THE
GRANTING OF SUCH LEGAL OR EQUITALE RELIEF AS IS DEEMED APPROPRIATE BY SUCH
COURT. EACH OBLIGOR HEREBY WAIVES PERSONAL SERVICE OF THE SUMMONS, COMPLAINT AND
OTHER PROCESS ISSUED IN ANY SUCH ACTION OR SUIT AND AGREES THAT SERVICE OF SUCH
SUMMONS, COMPLAINT AND OTHER PROCESS MAY BE MADE BY REGISTERED OR CERTIFIED MAIL
ADDRESSSED TO THE OBLIGOR CARE OF THE GRANTOR'S ADDRESS FOR NOTICES PURPOSES
PURSUANT TO THE TRUST DEED AND THAT SERVICE SO MADE SHALL BE DEEMED COMPLETED
UPON THE EARLIER OF ACTUAL RECEIPT THEREOF OR THREE (3) DAYS AFTER DEPOSIT IN
THE U.S. MAILS, PROPER POSTAGE PREPAID.

                                       6
<PAGE>
                  8.9 Consideration for Transfer. Each Obligor acknowledges and
agrees that there is valuable consideration for their execution of this
instrument. Any and all reserves or funds held by Lender in connection with the
Loan will be deemed transferred to Transferee upon the assumption of the Loan as
evidenced by this instrument. Lender is assuming no responsibility or obligation
to verify the payment or transfer of consideration between Borrower and
Transferee, nor the adequacy or sufficiency thereof, nor for compliance with
applicable state and federal statutes with respect thereto. The actual
consideration between Borrower and Transferee for transfer of the Property is
the sole responsibility of such parties (and not of Lender), and Lender will
have no obligation or liability with respect thereto.

                  8.10 Further Assurances. In connection with the transfer to
and assumption by Transferee, the parties will provide such further assurances
as may be reasonably required by Lender in order to carry out the parties'
intent and agreement as set forth in this Agreement. From and after the date of
its acquisition of the Property, Transferee will provide financial and other
reports, documents, statements, notices and information as required pursuant to
the Loan Agreement (Section 2.6 and other provisions of the Loan Agreement,
incorporated herein by this reference) and other Loan Instruments, in the same
manner as required of Borrower as provided therein.

                  8.11 Joint and Several Liability. All obligations of Borrower,
Transferee and each Guarantor under the Loan Instruments, Indemnity Agreement,
this Agreement and the other Additional Documents are joint and several.

                  8.12 Excluded Collateral. The Trust Deed and other Loan
Instruments and the UCC financing statement filed in connection with this
Agreement will encumber all of the "Property" (as defined in the Trust Deed)
that Transferee acquires from Borrower, and any after-acquired Property that is
used in connection with the operation of the Improvements as such (e.g., heating
ventilation and air conditioning systems, health and safety systems, facilities
used to provide utility services, parking facilities, garbage disposal and other
building systems), but will not encumber the presently owned or after-acquired
furniture, fixtures, and equipment ("FF&E"), personal property and other
operating assets of Transferee that (a) were not acquired by Transferee from
Borrower by deed, and (b) are used in connection with the operation of business
by Transferee at the Property (the "Excluded Business Collateral").

                           [NO MORE TEXT ON THIS PAGE]

                                       7
<PAGE>
                  IN WITNESS WHEREOF, this instrument has been duly executed as
of the date and year first written above.

TRANSFEREE:                PORTLAND BREWING COMPANY, an Oregon corporation

                           By:  /s/ Charles A. Adams
                                ------------------------------------------------
                           Name (printed):  Charles A. Adams
                           Title:               President

STATE OF OREGON            )
                           )ss.
County of Multnomah        )

On this 17 day of September, 2001, before me personally appeared Charles A.
Adams, who being by me duly sworn, did say that he/she is the President of
PORTLAND BREWING COMPANY, an Oregon corporation, and did acknowledge the due
execution of the foregoing instrument by him/her in behalf of said entities, by
authority duly given, and acknowledged the said instrument to be their act and
deed.

                  IN WITNESS WHEREOF I have hereunto set my hand and affixed by
official seal the day and year first above written.

                                            /s/ Kathy A. Peabody
                                            ----------------------------------
                                            Notary Public in and for OREGON
                                            My commission expires:  4/10/05

BORROWER:                  PORTLAND BREWING BUILDING, L.L.C.,
                           an Oregon limited liability company

                           By: MACTARNAHAN LIMITED PARTNERSHIP, an
                               Oregon limited partnership, as Member

                               By:  HARMER MILL AND LOGGING SUPPLY CO.,
                               DBA  HARMER CO., an Oregon corporation, its
                               General Partner

                               By:  /s/ R.M. MacTarnahan
                                    -------------------------------------------
                                        R.M. MacTarnahan, its President

                           By: ELECTRA PARTNERS, INC.
                               an Oregon corporation, as Member

                               By:  /s/ Charles A. Adams
                                    -------------------------------------------
                                        Charles A. Adams, its President

                                       8
<PAGE>
EXISTING GUARANTORS:

GUARANTOR:                 MACTARNAHAN LIMITED PARTNERSHIP, an
                           Oregon limited partnership

                           By:  HARMER MILL AND LOGGING SUPPLY CO.,
                           DBA  HARMER CO., an Oregon corporation, its
                           General Partner

                           By:  /s/ RM MacTarnahan
                                -----------------------------------------------
                                    RM MacTarnahan, its President

GUARANTOR:                 ELECTRA PARTNERS, INC.,
                           an Oregon corporation

                           By:  /s/ Charles A. Adams
                                -----------------------------------------------
                                    Charles A. Adams, its President

GUARANTOR:                 L & L LAND, an Oregon general partnership

                           By:  /s/ Patricia Mead-Wall
                                -----------------------------------------------
                                    Patricia Mead Wall, its General Partner

                           By:  /s/ Howard M. Wall, Jr.
                                -----------------------------------------------
                                    Howard M. Wall, Jr., its General Partner

GUARANTOR:                 HOWARD M. WALL, JR.

                           /s/ Howard M. Wall, Jr.
                           ----------------------------------------------------
                                    Howard M. Wall, Jr., individually

GUARANTOR:                 PATRICIA MEAD WALL

                           /s/ Patricia Mead-Wall
                           ----------------------------------------------------
                                   Patricia Mead Wall, individually

                                       9
<PAGE>
GUARANTOR:                 HARMER MILL AND LOGGING SUPPLY CO., DBA
                                            HARMER CO., an Oregon corporation

                           By:  /s/ RM MacTarnahan
                                -----------------------------------------------
                                    RM MacTarnahan, its President

GUARANTOR:                 PETER F. ADAMS

                           /s/ Peter F. Adams
                           ----------------------------------------------------
                           Peter F. Adams, individually

GUARANTOR:                 CHARLES A. ADAMS

                           /s/ Charles A. Adams
                           ----------------------------------------------------
                           Charles A. Adams, individually

GUARANTOR:                 ROBERT MACTARNAHAN

                           /s/ Robert MacTarnahan
                           ----------------------------------------------------
                           Robert Mactarnahan, individually

                                       10
<PAGE>
STATE OF OREGON                     )
                                    )ss.
County of Multnomah                 )

On this 19 day of September, 2001, before me personally appeared Robert M.
MacTarnahan, who being by me duly sworn, did say that he/she is the President of
HARMER MILL AND LOGGING SUPPLY CO., dba HARMER CO., an OREGON corporation, as
the General Partner of and on behalf of MACTARNAHAN LIMITED PARTNERSHIP, an
Oregon limited partnership, as Member of and on behalf of PORTLAND BREWING
BUILDING, L.L.C., an Oregon limited liability company, and did acknowledge the
due execution of the foregoing instrument by him/her in behalf of said entities,
by authority duly given, and acknowledged the said instrument to be their act
and deed.

                  IN WITNESS WHEREOF I have hereunto set my hand and affixed by
official seal the day and year first above written.

                                             /s/ Kathy A. Peabody
                                             --------------------
                                             Notary Public in and for OREGON
                                             My commission expires on:  4/10/05

STATE OF OREGON                     )
                                    )ss.
County of Multnomah                 )

On this 19 day of September, 2001, before me personally appeared R. M.
MacTarnahan, who being by me duly sworn, did say that he/she is the President of
HARMER MILL AND LOGGING SUPPLY CO., dba HARMER CO., an Oregon corporation, as
the General Partner of and on behalf of MACTARNAHAN LIMITED PARTNERSHIP, an
Oregon limited partnership, as Guarantor, and did acknowledge the due execution
of the foregoing instrument by him/her in behalf of said entities, by authority
duly given, and acknowledged the said instrument to be their act and deed.

                  IN WITNESS WHEREOF I have hereunto set my hand and affixed by
official seal the day and year first above written.

                                             /s/ Kathy A. Peabody
                                             --------------------
                                             Notary Public in and for OREGON
                                             My commission expires on:  4/10/05

                                       11
<PAGE>
STATE OF OREGON                     )
                                    )ss.
County of Multnomah                 )

On this 19 day of September, 2001, before me personally appeared R. M.
MacTarnahan, who being by me duly sworn, did say that he/she is the President of
HARMER MILL AND LOGGING SUPPLY CO., dba HARMER CO., an Oregon corporation, as
the Guarantor, and did acknowledge the due execution of the foregoing instrument
by him/her in behalf of said entities, by authority duly given, and acknowledged
the said instrument to be their act and deed.

                  IN WITNESS WHEREOF I have hereunto set my hand and affixed by
official seal the day and year first above written.

                                             /s/ Kathy A. Peabody
                                             --------------------
                                             Notary Public in and for OREGON
                                             My commission expires on:  4/10/05

STATE OF OREGON                     )
                                    )ss.
County of Multnomah                 )

On this 17 day of September, 2001, before me personally appeared Charles A.
Adams, who being by me duly sworn, did say that he/she is the President of
ELECTRA PARTNERS, INC., an Oregon corporation, as Member of and on behalf of
PORTLAND BREWING BUILDING, L.L.C., an Oregon limited liability company, and did
acknowledge the due execution of the foregoing instrument by him/her in behalf
of said entities, by authority duly given, and acknowledged the said instrument
to be their act and deed.

                  IN WITNESS WHEREOF I have hereunto set my hand and affixed by
official seal the day and year first above written.

                                             /s/ Kathy A. Peabody
                                             --------------------
                                             Notary Public in and for OREGON
                                             My commission expires on:  4/10/05

                                       12
<PAGE>

STATE OF OREGON                     )
                                    )ss.
County of Multnomah                 )

On this 17 day of September, 2001, before me personally appeared Charles A.
Adams, who being by me duly sworn, did say that he/she is the President of
ELECTRA PARTNERS, INC., an Oregon corporation, as Guarantor, and did acknowledge
the due execution of the foregoing instrument by him/her in behalf of said
entity, by authority duly given, and acknowledged the said instrument to be its
act and deed.

                  IN WITNESS WHEREOF I have hereunto set my hand and affixed by
official seal the day and year first above written.

                                             /s/ Kathy A. Peabody
                                             --------------------
                                             Notary Public in and for OREGON
                                             My commission expires on:  4/10/05

STATE OF OREGON                     )
                                    )ss.
County of Multnomah                 )

On this 19 day of September, 2001, before me personally appeared Patricia Mead
Wall and Howard M. Wall, Jr., each of whom being by me duly sworn, did say that
they are General Partners of L & L LAND, an Oregon general partnership, and did
acknowledge the due execution of the foregoing instrument by him/her in behalf
of said general partnership, as a Guarantor, by authority duly given, and
acknowledged the said instrument to be their and its act and deed.

                  IN WITNESS WHEREOF I have hereunto set my hand and affixed by
official seal the day and year first above written.

                                       /s/ Kathy A. Peabody
                                       --------------------
                                       Notary Public in and for OREGON #344244
                                       My commission expires on:  4/10/05

STATE OF OREGON                     )
                                    )ss.
County of Multnomah                 )

This instrument was acknowledged before me on Sept. 19, 2001, by PATRICIA MEAD
WALL and HOWARD M. WALL, JR.

                                             /s/ Kathy A. Peabody
                                             --------------------
                                             Notary Public in and for OREGON
                                             My commission expires on:  4/10/05

                                       13
<PAGE>
STATE OF OREGON                     )
                                    )ss.
County of Multnomah                 )

This instrument was acknowledged before me on 9/14, 2001, by PETER F. ADAMS.

                                             /s/ Martha McKinley
                                             -------------------
                                             Notary Public for OREGON
                                             My commission expires on:  11/9/04

STATE OF OREGON                     )
                                    )ss.
County of Multnomah                 )

This instrument was acknowledged before me on 9/17, 2001, by CHARLES A. ADAMS.

                                             /s/ Kathy A. Peabody
                                             --------------------
                                             Notary Public in and for OREGON

STATE OF OREGON                     )
                                    )ss.
County of Multnomah                 )

This instrument was acknowledged before me on 9/19, 2001, by ROBERT MACTARNAHAN.

                                             /s/ Kathy A. Peabody
                                             --------------------
                                             Notary Public in and for OREGON

                                       14
<PAGE>
LENDER:                            CAPITAL CROSSING BANK,
                                   a Massachusetts chartered banking institution

                                   By:  /s/ W. Kenneth Weidman, Jr.
                                        ----------------------------------------
                                   Name (printed):  W. Kenneth Weidman, Jr.
                                   Title: Senior Vice President

STATE OF MASSACHUSETTS              )
                                    )ss.
County of Suffolk                   )

On this __th day of September, 2001 before me personally appeared W. Kenneth
Weidman, Jr., to me known to be the Senior Vice President of CAPITAL CROSSING
BANK, a Massachusetts chartered banking institution, the entity that executed
the within and foregoing instrument, and acknowledged said instrument to be the
free and voluntary act and deed of said entity, for the uses and purposes
therein mentioned, and on oath stated that he is authorized to execute said
instrument for and on behalf of such entity.

                  IN WITNESS WHEREOF, I have hereunto set my hand and affixed by
seal the day and year first above written.

                                             /s/ Robert E. McCarthy
                                             ----------------------
                                             Notary Public in and for
                                             My appointment expires:

[Notarial Seal or Stamp]
                                                     ROBERT E. McCARTHY
                                                        Notary Public
                                             My Commission Expires Feb. 8, 2002

                                       15

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