Document:

Exhibit
10.9

Recording Requested By

And When Recorded Mail To:

U.S. Bank National Association

101 North First Avenue, Suite 1600

Phoenix, AZ 85003-1902

Attention: Commercial Banking

Space Above For Recorder’s Use

WASHINGTON STATE COUNTY
AUDITOR’S/RECORDER’S INFORMATION (RCW 65.04):

GRANTOR:           RADER FARMS ACQUISITION CORP. (“GRANTOR”)

GRANTEE:            U.S. BANK NATIONAL ASSOCIATION (“BENEFICIARY”)

ABBREVIATED

	
  LEGAL DESCRIPTION:

  	
  Ptn. of Sections 1, 3, 4, 9, 10, 31, 33, Township 40
  North, Range 3 East of W.M., Ptn. of Sections 6 and 31, Township 40 North,
  Range 4 East of W.M.

  

 

[SEE ATTACHED
EXHIBIT A FOR FULL LEGAL DESCRIPTION]

	
  ASSESSOR’S

  	
  400406 235480 0000 and
  400310 258263 0000 and 400309 466060 0000

  
	
  PROPERTY TAX
  PARCEL

  	
  and 400405 096537 0000
  and 410333 205232 0000 and 400310 121045

  
	
  ACCOUNT
  NUMBER(S):

  	
  0000 and 400309 475078
  0000 and 400309 476112 0000 and 400310

  
	
   

  	
  024030 0000 and 400310
  067020 0000 and 400406 198523 0000 and

  
	
   

  	
  410431 019031 0000 and
  410431 019090 0000 and 400310 207022 0000

  
	
   

  	
  and 400309 490232 0000
  and 410431 019156 0000 and 400310 038225

  
	
   

  	
  0000 and 400309 505035
  0000 and 400310 105237 0000 and 400309

  
	
   

  	
  441228 0000 and 400303 449478
  0000 and 400406 037482 0000 and 

  
	
   

  	
  400309 305089 0000 and
  400310 070169 0000 and 400301 235478 0000 

  
	
   

  	
  and 400310 187087 0000
  and 400310 070085 0000 and 400309 470490 

  
	
   

  	
  0000 and 400301 363356
  0000 and 400405 104471 0000 and 400406 

  
	
   

  	
  250460 0000 and 400304
  344458 0000 and 410431 086075 0000 and 

  
	
   

  	
  400310 213195 0000 and 400304
  209456 0000 and 400303 487407 0000

  
	
   

  	
  and 400309 395110 0000
  and 400301 402485 0000

  

 

LEASEHOLD
DEED OF TRUST

with Assignment of Rents, Security Agreement, and

Fixture Filing

(Washington)

This Document Serves as a
Fixture Filing under the Washington
Uniform Commercial Code.

Grantor’s Organizational
Identification Number is: DE-4351069.

THIS DEED OF TRUST
SECURES A VARIABLE RATE PROMISSORY NOTE WHICH VARIES ACCORDING TO CHANGES IN
CERTAIN CONTRACT RATES OF INTEREST IN ACCORDANCE WITH THE TERMS OF THE
PROMISSORY NOTE AND THE LOAN AGREEMENT BETWEEN GRANTOR AND BENEFICIARY.

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The
parties to this Leasehold Deed of Trust, with Assignment of Rents, Security
Agreement, and Fixture Filing (this “Deed of Trust”), dated for reference purposes
as of June 27, 2007, are THE INVENTURE GROUP,
INC., a Delaware corporation, as trustor (the “Grantor”), CHICAGO TITLE INSURANCE COMPANY, as trustee
(the “Trustee”), and U.S. BANK NATIONAL
ASSOCIATION, a national banking association, as beneficiary and
secured party (the “Beneficiary”). The parties mailing addresses are set forth
on the signature page(s) below.

This
Deed of Trust secures, among other things, repayment of a term loan (the “Loan”)
evidenced by the promissory note described in Section 1.2(a)(i), which Loan is made pursuant to a
certain loan agreement (the “Loan Agreement”), dated as of the date hereof,
entered into by Grantor and Beneficiary. Capitalized terms used above and
elsewhere in this Deed of Trust without definition have the meanings given them
in the Loan Agreement. All terms not defined herein or in the Loan Agreement
shall have the meaning given them in the Uniform Commercial Code, as enacted in
the state where the Land is located, or under the Uniform Commercial Code in
any other state to the extent the same is applicable law (collectively, as
amended, recodified, and in effect from time to time, the “UCC”). If a term is
defined differently in Article 9 of the UCC than in another Article, Article 9
shall control.

In
addition to the Loan, this Deed of Trust secures, repayment of a revolving line
of credit loan (the “Facility 1 Loan”) evidenced by the promissory note
described in Section 1.2(a)(ii)
and a term loan (the “Facility 2 Loan”) evidenced by the promissory note
described in Section 1.2(a)(iii)
(collectively, the “RLOC/TL Loans”), which RLOC/TL Loans are made pursuant
to a certain Loan Agreement (Revolving Line of Credit Loan and Term Loan)
between Grantor and Beneficiary dated as of May 16, 2007 (the “RLOC/TL Loan
Agreement”). The Loan and the RLOC/TL Loans will be cross-collateralized and
cross-defaulted.

For
purposes hereof, (a) the terms “Loan” or “Loans” shall, as the context may
require, include and refer to the Loan described in Section 1.2(a)(i), the Facility 1 Loan
described in Section 1.2(a)(ii)
and the Facility 2 Loan described in Section
1.2(a)(iii), (b) the terms “Note” or “Notes” shall, as the
context may require, include and refer to the Note described in Section 1.2(a)(i)  the Facility 1 Note
described in Section 1.2(a)(ii),
and the Facility 2 Note described in Section
1.2(a)(iii). For purposes hereof, this Deed of Trust, the Loan
Agreement, the RLOC/TL Loan Agreement, and the Notes described in Sections 1.2(a)(i),(ii), and (iii),  together with all of
their exhibits, and all other documents which evidence, guaranty, secure, or
otherwise pertain to the Loan and/or the RLOC/TL Loans collectively constitute
the “Loan Documents.”

1.           Grant
in Trust and Secured Obligations.

1.1            Grant in Trust. In
consideration and for the purpose of securing payment and performance of the
Secured Obligations (as defined below), Grantor hereby irrevocably and
unconditionally grants, bargains, conveys, sells, transfers, and assigns to
Trustee, in trust for the benefit of Beneficiary, with power of sale and right
of entry and possession, all estate, right, title, and interest which Grantor
now has or may later acquire in and to the following property (all or any part
of such property, or any interest in all or any part of it, as the context may
require, the “Property”):

(a)            The leasehold estate created by that certain Agricultural
Ground Lease dated to be effective as of May 27, 2007, wherein Lyle Rader, Sue
Rader, Brad Rader and Julie Newell, fka Julie Rader, collectively are the
current lessor (“Lessor” or “Ground Lessor”) and Grantor is the current lessee
as described in an undated memorandum, and recorded May 17, 2007, as Instrument
No. 2070502840, Official Records of Whatcom County, Washington (the “Ground
Lease”) relating to that certain real property located in Whatcom County,
Washington, as more fully described in Exhibit
A  attached hereto and made a part hereof, together with all
rights, privileges, easements, appurtenances, tenements, hereditaments, rights
of way, appendages, projections, water rights including riparian and littoral
rights and whether or not

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appurtenant, streets, ways, alleys, and strips and gores of land, now or
hereafter in any way belonging, adjoining, crossing or pertaining to such real
property (the “Land”); together with all existing and future easements and
rights affording access to it (the “Land”), together with all of the right,
title and estate of the Grantor in and to the Ground Lease and the property
subject thereto, all options and rights now existing hereafter or arising
thereunder, all of Grantor’s right to waive, excuse, release or consent to any
waiver, excuse or release of any provision of the Ground Lease or to consent to
subordination of the Ground Lease to any mortgage or estate superior to the Ground
Lease to any other estate and all deposits made by Grantor pursuant to the
Ground Lease; together with

(b)             All buildings, structures and improvements
now located or later to be constructed on the Land (the “Improvements”);
together with

(c)             All articles of personal property
(including those specified below) and any software imbedded therein, now owned
or hereafter acquired by Grantor and attached to, placed upon for an indefinite
term, or used in connection with the Land and/or Improvements, together with
all goods and other property that are, or at any time become, so related to the
Property that an interest in them arises under real estate law, or they are
otherwise a “fixture” under applicable law (each a “Fixture,” collectively “Fixtures”);
together with

(d)             All existing and future as-extracted
collateral produced from or allocated to the Land, including, all minerals,
oil, gas, other hydrocarbons and associated substances, sulphur, nitrogen,
carbon dioxide, helium and any other commercially valuable substances which may
be in, under or produced from any part of the Land, and all products processed
or obtained therefrom, and the proceeds thereof, and all development rights and
credits, air rights, water, water courses, water rights (whether riparian,
appropriative or otherwise, and whether or not appurtenant) and water stock,
easements, rights-of-way, gores or strips of land, and any land lying in the
streets, ways, alleys, passages, roads or avenues, open or proposed, in front
of or adjoining the Land and Improvements; together with

(e)           All existing and future leases, subleases,
subtenancies, licenses, occupancy agreements, concessions, and other agreements
of any kind relating to the use or occupancy of all or any portion of the
Property, whether now in effect or entered into in the future (each a “Lease,”
collectively, the “Leases”) relating to the use and enjoyment of all or any
part of the Land and Improvements (including but not limited to all leasehold
estate, right, title and interest of Grantor in and to the Ground Lease, and
any sub-ground leases), including all amendments, extensions, renewals, or
modifications thereof (subject to Beneficiary’s right to approve same pursuant
to the terms of the Loan Documents), and any and all guaranties of, and
security for, lessees’ performance under any and all Leases, and all other
agreements relating to or made in connection with any of such Leases; together
with

All rents (and payments in lieu of rents), royalties,
issues, profits, income, proceeds, payments, and revenues of or from the
Property (specifically excluding all rents due to the Ground Lessor by Grantor
under the Ground Lease), and/or at any time payable under any and all Leases,
including all rent loss insurance proceeds, prepaid rents and any and all
security deposits received or to be received by Grantor pursuant to any and all
Leases, and all rights and benefits accrued, or to accrue to, Grantor under any
and all Leases (some or all collectively, as the context may require, “Rents”);
together with

(g)           All right, title and interest now
owned or hereafter acquired by Grantor in and to any greater estate in the Land
and Improvements, whether pursuant to the terms of the Ground Lease, the terms
of any option or first right of refusal, or otherwise, together with

(h)           All
real property and improvements on it, and all appurtenances and other property
and interests of any kind or character, whether described in Exhibit A or not, which may be reasonably

 3
 

necessary or desirable to promote the present and any reasonable future
beneficial use and enjoyment of the Land and Improvements; together with

(i)              All rights to the name, signs, trade
names, trademarks, trademark applications, service marks, licenses, software,
and symbols used in connection with the Land and Improvements; together with

(j)              All goods, materials, supplies, chattels,
furniture, fixtures, machinery, apparatus, fittings, equipment, and articles of
personal property of every kind and nature whatsoever, including consumable
goods, now or hereafter located in or upon the Property or any part thereof, or
to be attached to or placed in or on, or used or useable in connection with any
present or future use, enjoyment, occupancy or operation of all or any part of
the Land and Improvements, whether stored on the Land or elsewhere, including
by way of description but without limiting the generality of the foregoing, all
computer systems, telephone and telecommunication systems, televisions and
television systems, pumps or pumping plants, tanks, motors, conduits, engines,
pipes, ditches and flumes, and also all gas and electrical apparatus
(including, but not limited to, all electrical transformers, switches, switch
boxes, and equipment boxes), cooking, heating, cooling, air conditioning,
sprinkler equipment, lighting, power equipment, ventilation, incineration,
refrigeration and plumbing apparatus, fixtures and equipment, screens, storm
doors and windows, stoves, wall beds, refrigerators, attached cabinets,
partitions, ovens, ranges, disposals, dishwashers, carpeting, plants and
shrubbery, ground maintenance equipment, ducts and compressors; together with
all building materials, goods and personal property on or off the Property
intended to be affixed to or incorporated in the Property but not yet affixed
to or incorporated in the Property, all which shall be considered to the
fullest extent of the law to be real property for purposes of this Deed of
Trust; together with

(k)             All building materials, equipment, work in
process or other personal property of any kind, whether stored on the Land or
elsewhere, which have been or later will be acquired for the purpose of being
delivered to, incorporated into or installed in or about the Land or
Improvements; together with

(I)             All deposit accounts of Grantor, including
but not limited to, any deposit account (if any), any Borrower’s Funds Account
(if any), any Replacement Reserve Account (if any), any Operating Reserve
Account (if any), and all Loan funds deposited into any such account, whether
disbursed or not, and Grantor’s own funds now or later to be held on deposit in
all such accounts; together with

(m)            To the extent not expressly prohibited by
law, all federal, state, and local tax credits, and other tax benefits related
to the Property; together with

(n)             All rights to the payment of money
and all guaranties thereof and judgments therefor, and all accounts, accounts
receivable, reserves, deferred payments, refunds of real property and personal
property taxes and other refunds, cost savings, payments and deposits, whether
now or later to be received from third parties (including all earnest money
sales deposits) or deposited by Grantor with third parties (including all
utility deposits), warranty rights, contract rights, management contracts,
service contracts, construction and architectural contracts, contracts for the
purchase and sale of the Property or any part thereof, end-loan or other
financing commitments, development and use rights, governmental permits and
licenses, applications, architectural and engineering plans, specifications and
drawings, as-built drawings, chattel paper, instruments, documents, promissory
notes, drafts, letters of credit (other than letters of credit in favor of
Beneficiary), letter of credit rights (whether or not the letter of credit is
evidenced by a writing), supporting obligations, and general intangibles,
including payment intangibles, whether any of the foregoing are tangible or
electronic, which arise from or relate to construction on the Land or to any
business now or later to be conducted on it, or to the Land and Improvements
generally; together with

(o)           All insurance policies (and the unearned
premiums therefor) and bonds required by the Loan Documents and all proceeds
thereof, and all proceeds (including all claims to and demands for

 4
 

 

them) of the voluntary or involuntary conversion of any of the Land, the
Improvements, or the other property described above into cash or liquidated
claims, including proceeds of all present and future fire, hazard or casualty
insurance policies and all condemnation awards or payments now or later to be
made by any public body or decree by any court of competent jurisdiction for
any taking or in connection with any condemnation or eminent domain proceeding,
and all causes of action and their proceeds for any damage or injury to, or
defect in, the Land, the Improvements, or the other property described above or
any part of them, or breach of warranty in connection with the construction of
the Improvements, including causes of action arising in tort, contract, fraud,
misrepresentation, or concealment of a material fact; together with

(p)              All books, records, and all
recorded data of any kind or nature (regardless of the medium of recording)
pertaining to any and all of the property described above, including records
relating to tenants under any leases, and the qualification of such tenants,
and all certificates, vouchers, and other documents in any way related thereto,
and all records relating to the application and allocation of any federal, state,
and local tax credits or benefits, including computer-readable memory and any
computer hardware or software necessary to access and process such memory
(collectively, the “Books and Records”); together with

(q)              All commercial tort claims Grantor
now has or hereafter acquires relating to any of the property described above;
together with

(r)               All software embedded within or used in connection
with any of the property described above; together with

(s)               All products, accounts, and
proceeds (cash or non-cash) of, additions, betterments, extensions, accessions
and accretions to, substitutions, renewals and replacements for, and changes in
any of the property described above, including all proceeds of any voluntary or
involuntary disposition or claim respecting any such property (arising out of
any judgment, condemnation or award, or otherwise arising) and all supporting
obligations ancillary to or arising in connection therewith, general
intangibles (including payment intangibles) arising in connection therewith,
and all goods, accounts, instruments, documents, promissory notes, chattel
paper, deposit accounts, supporting obligations, and general intangibles
(including payment intangibles) (whether any of the foregoing are tangible or
electronic), wherever located, acquired with cash proceeds of any of the
foregoing or its proceeds.

Grantor shall and will warrant and forever defend the above-bargained
Property in the quiet and peaceable possession of Trustee, its successors and
assigns, against all and every person or persons lawfully claiming or to claim
the whole or any part thereof. Grantor agrees that any greater title to the
Property hereafter acquired by Grantor during the term hereof shall be subject
hereto.

1.2         Secured Obligations.

(a)               Grantor makes the grant, bargain,
conveyance, sale, transfer, and assignment set forth above and grants the
security interest set forth in Section 3 below for the purpose of securing the
following obligations (the “Secured Obligations”) in such order of priority as
Beneficiary may determine:

(i)            Payment
of all obligations at any time owing under that certain Promissory Note Secured
By Deeds of Trust (the “Note”) dated as of June 27, 2007, payable by Grantor as
maker to the order of Beneficiary in the stated principal amount of Four
Million and No/100 Dollars ($4,000,000.00) to the order of Beneficiary; and

(ii)           Payment
of all obligations at any time owing under that certain Promissory Note Secured
By Deeds of Trust (Facility 1 - Revolving Line of Credit Loan) (the “Facility 1
Note”) dated as of May 16, 2007, payable by Grantor as maker to the order of

 5
 

Beneficiary
in the stated principal amount of Fifteen Million and No/100 Dollars
($15,000,000.00) to the order of Beneficiary; and

(iii)          Payment
of all obligations at any time owing under a Promissory Note Secured By Deeds
of Trust (Facility 2 – Term Loan) (the “Facility 2 Note”) dated as of May 16,
2007, payable by Grantor as maker to the order of Beneficiary in the stated
principal amount of Six Million and No/100 Dollars ($6,000,000.00) to the order
of Beneficiary; and

(iv)        Payment and performance of all
obligations of Grantor under this Deed of Trust; and

(v)         Payment and performance of all
obligations of Grantor under the Loan Agreement, under any Loan Documents, and
under any rate lock agreement or interest rate protection agreement (such as
any rate lock agreement, interest rate swap agreement, International Swaps and
Derivatives Association, Inc. Master Agreement, or similar agreement or
arrangements now existing or hereafter entered into by Grantor and Beneficiary
in connection with the Loans evidenced by the Notes to hedge the risk of
variable rate interest volatility or fluctuations in interest rates as any such
agreement or arrangement may be modified, supplemented and in effect from time
to time); provided, however, that this Deed of Trust does not
secure any Loan Document or other document, or any provision of any Loan
Document or other document, that is expressly stated to be unsecured; and

(vi)        Payment and performance of all future
advances and other obligations that Grantor, or any successor in interest to
Grantor, and/or any other obligor (if different than Grantor), or any successor
in ownership of all or part of the Property, may agree to pay and/or perform
(whether as principal, surety, or guarantor) for the benefit of Beneficiary,
when a writing evidences the parties’ agreement that the advance or obligation
be secured by this Deed of Trust; and

(vii)       Payment and performance of all
modifications, amendments, extensions, and renewals, however evidenced, of any
of the Secured Obligations, including any successor agreements or instruments
which restate and supersede any agreements or instruments evidencing the
Secured Obligations.

(b)             All persons who may have or acquire an interest in all
or any part of the Property will be considered to have notice of, and will be
bound by, the terms of the Secured Obligations and each other agreement or
instrument made or entered into in connection with each of the Secured
Obligations. Such terms include any provisions in the Note or the Loan
Agreement which permit borrowing, repayment, and reborrowing, or which provide
that the interest rate on one or more of the Secured Obligations may vary from
time to time.

2.              Assignment
of Lessor’s Interest in Leases and Assignment of Rents.

2.1        Absolute Assignment. Effective
upon the recordation of this Deed of Trust, Grantor hereby irrevocably,
absolutely, presently, and unconditionally assigns, transfers, and sets over to
Beneficiary:

(a)             All of Grantor’s right, title, and interest in, to, and
under any and all Leases, all amendments, extensions, renewals, or
modifications thereof (subject to Beneficiary’s right to approve same pursuant
to the terms of the Loan Documents), and any and all guaranties of, and
security for, lessees’ performance under any and all Leases, and all other
agreements relating to or made in connection with any of such Leases; and

 6
 

(b)           All Rents.

In the event that anyone establishes and exercises
any right to develop, bore for, or mine for any water, gas, oil, or mineral on
or under the surface of the Property, any sums that may become due and payable
to Grantor as bonus or royalty payments, and any damages or other compensation
payable to Grantor in connection with the exercise of any such rights, shall
also be considered Rents assigned under this Section.

THIS IS AN ABSOLUTE ASSIGNMENT, NOT AN ASSIGNMENT FOR
SECURITY ONLY.

2.2         Grant of
License. Beneficiary hereby confers upon Grantor a
license (the “License”) to collect and retain the Rents as they become due and
payable, so long as no Event of Default (as such term is defined below) shall
exist. Upon the occurrence of an Event of Default, the License shall terminate
(automatically and without notice or demand of any kind and without regard to
the adequacy of Beneficiary’s security under this Deed of Trust).

2.3         Collection
and Application of Rents and Enforcement of Leases. Subject
to the License granted to Grantor above and the other provisions of this
Section, Beneficiary has the right, power, and authority to collect any and all
Rents and enforce the provisions of any Lease. In connection with the
provisions of this Section, Grantor hereby constitutes and irrevocably appoints
Beneficiary its attorney-in-fact, with full power of substitution, to perform
any and all of the following acts, if and at the times when Beneficiary in its
sole and absolute discretion may so choose:

(a)             Demand,
receive, and enforce payment of any and all Rents, and endorse all checks and
other payment instruments related thereto;

(b)             Give
receipts, releases, and satisfactions for any and all Rents;

(c)             Sue either in the name of Grantor
or in the name of Beneficiary for any and all Rents;

(d)             Enforce
the provisions of any and all Leases;

(e)             Enter
into Leases; and/or

(f)              Perform
and discharge any and all undertakings of Grantor or otherwise under any Lease.

The
appointment granted in this Section shall be deemed to be a power coupled with
an interest. Beneficiary’s rights under this Section do not depend on whether
or not Beneficiary takes possession of the Property as permitted under this
Deed of Trust. In Beneficiary’s sole and absolute discretion, Beneficiary may
choose to collect Rents or enforce any and all Leases either with or without
taking possession of the Property and either in person or through a
court-appointed receiver. Beneficiary’s rights and powers under this Section
are in addition to the other remedies herein provided for upon the occurrence
of an Event of Default and may be exercised independently of or concurrently
with any other such remedies.

2.4         Notice.
All lessees under any and all Leases are hereby
irrevocably authorized and notified by Grantor to rely upon and to comply with
(and will be fully protected in so doing) any notice or demand by Beneficiary
for the payment to Beneficiary of any rental or other sums which may at any
time become due under the Leases, or for the performance of any of lessees’
undertakings under the Leases, and lessees have no right or duty to inquire
whether any Event of Default has actually occurred or is then existing
hereunder or to obtain Grantor’s consent.

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2.5          Proceeds.
Beneficiary has the right to apply all amounts
received by it pursuant to this assignment to pay any of the following in the
amounts and in the order Beneficiary deems appropriate: (a) any and all Secured
Obligations, in any order and proportions as Beneficiary in its sole and
absolute discretion may choose, and (b) the costs and expenses of operation of
the Property and collection of Rents and other sums that may be incurred by
Trustee, Beneficiary, and/or any receiver, including but not limited to
reasonable attorneys’ fees and any and all expenses of leasing, operating,
maintaining, and managing the Property, and all other costs and charges
incident to the Property; including, without limitation, (i) salaries, fees,
commissions and wages of a managing agent, and other employees, agents, or
independent contractors; (ii) taxes, charges, claims, assessments, any other
liens, and premiums for all insurance; and (iii) the cost of all alterations,
renovations, repairs or replacements, and all expenses incident to taking and
retaining possession of the Property. In addition, Beneficiary may hold the
same as security for the payment of the Secured Obligations. Beneficiary shall
have no liability for any funds which it does not actually receive.

2.6          Beneficiary
Not Responsible. Under no circumstances shall Beneficiary
have any duty to produce Rents from the Property. Regardless of whether or not
Beneficiary, in person or by agent, takes actual possession of the Land and the
Improvements, Beneficiary is not and shall not be deemed to be:

(a)          A
“mortgagee in possession” for any purpose; or

(b)         Responsible
for performing any of the obligations of the Grantor as lessor under any lease;
or

(c)          Responsible
for any waste committed by lessees or any other parties, any dangerous or
defective condition of the Property, or any negligence in the management,
upkeep, repair or control of the Property; or

(d)         Liable
in any manner for the Property or the use, occupancy, enjoyment or operation of
all or any part of it.

2.7          Leasing.
Grantor shall not accept any deposit or
prepayment of Rents for any rental period exceeding one (1) month without
Beneficiary’s express prior written consent. Grantor shall not lease the
Property or any part of it except strictly in accordance with the Loan
Agreement. Grantor shall apply all Rents received by it in the manner required
by the Loan Agreement.

3.               Grant
of Security Interest.

3.1          Security
Agreement. The parties intend for this Deed of Trust
to create a lien on the Property, and an absolute assignment of the Rents and
Leases, all in favor of Beneficiary. The parties acknowledge that some of the
Property and some of the Rents and Leases may be determined under applicable
law to be personal property or fixtures. To the extent that any Property,
Rents, or Leases may be or be determined to be personal property, Grantor, as
debtor, hereby grants to Beneficiary, as secured party, a security interest in
all such Property, Rents, and Leases, to secure payment and performance of the
Secured Obligations. This Deed of Trust constitutes a security agreement under
the UCC, covering all such Property, Rents, and Leases. To the extent such
Property, Rents, or Leases are not real property encumbered by the lien granted
above, and are not absolutely assigned by the assignment set forth above, it is
the intention of the parties that such Property, Rents, and/or Leases shall
constitute “proceeds, products, offspring, rents, or profits” (as defined in
and for the purposes of Section 552(b) of the United States Bankruptcy Code, as
such section may be modified or supplemented) of the Land and Improvements.

3.2          Financing Statements; Authorization
to File; Power of Attorney. Grantor hereby authorizes Beneficiary, at any time and from time to
time, to file any initial financing statements,

 8
 

amendments thereto, and continuation statements, with or without the
signature of Grantor, as authorized by applicable law, as applicable to the
Property or any part thereof. Grantor shall pay all fees and costs that
Beneficiary may incur in filing such documents in public offices and in
obtaining such record searches as Beneficiary may reasonably require and all
other reasonable fees and costs Beneficiary incurs in connection with
perfection of its security interests. For purposes of such filings, Grantor
agrees to promptly furnish any information requested by Beneficiary. Grantor
also ratifies its authorization for Beneficiary to have filed any like initial
financing statements, amendments thereto, or continuation statements if filed
prior to the date of this Deed of Trust. Grantor hereby irrevocably constitutes
and appoints Beneficiary, with full power of substitution, as its true and
lawful attorneys-in-fact with full irrevocable power and authority in the place
and stead of Grantor to execute in Grantor’s name any such documents and to
otherwise carry out the purposes of this Section, to the extent that Grantor’s
authorization above is not sufficient. Such power is deemed to be coupled with
an interest, and is therefore irrevocable. If any financing statement or other
document is filed in the records normally pertaining to personal property, that
filing shall never be construed as in any way derogating from or impairing this
Deed of Trust or the rights or obligations of the parties under it.

Everything used in connection with the Property
and/or adapted for use therein and/or which is described or reflected in this
Deed of Trust is, and at all times and for all purposes and in all proceedings
both legal or equitable shall be regarded as part of the real estate encumbered
by this Deed of Trust regardless of whether (i) any such item is physically
attached to the Improvements, (ii) serial numbers are used for the better
identification of certain equipment items capable of being thus identified in a
recital contained herein or in any list filed with Beneficiary or (iii) any
such item is referred to or reflected in any such Financing Statement so filed
at any time. Similarly, the mention in any such Financing Statement of (1)
rights in or to the proceeds of any fire and/or hazard insurance policy, or (2)
any award in eminent domain proceedings for a taking or for lessening of value,
or (3) Grantor’s interest as lessor in any present or future lease or rights to
income growing out of the use and/or occupancy of the property conveyed hereby,
whether pursuant to lease or otherwise, shall never be construed as in any way
altering any of the rights of Beneficiary as determined by this instrument or
impugning the priority of Beneficiary’s lien granted hereby or by any other
recorded document. Such mention in the Financing Statement is declared to be
solely for the protection of Beneficiary in the event any court or judge shall
at any time hold, with respect to the matters set forth in the foregoing
clauses (1), (2), and (3), that notice of Beneficiary’s priority of interest is
required in order to be effective against a particular class of persons,
including but not limited to the federal government and any subdivisions or
entity of the federal government, shall be filed in the UCC records.

4.           Effective
as a Financing Statement; Fixture Filing and Construction Mortgage.

This Deed of Trust constitutes a financing statement
filed as a fixture filing under the applicable section of the UCC, covering any
Property which now is or later may become fixtures attached to the Land or
Improvements. This Deed of Trust shall also be effective as a financing
statement covering as-extracted collateral (including oil and gas), accounts,
and general intangibles under the UCC, which will be financed at the wellhead
or minehead of the wells or mines located on the Land and is to be filed of
record in the real estate records of each county where any part of the Land is
situated. This Deed of Trust shall also be effective as a financing statement
covering any other Property and may be filed in any other appropriate filing or
recording office. The mailing address of Grantor is the address of Grantor set
forth at the end of this Deed of Trust, and the address of Beneficiary from
which information concerning the security interests hereunder may be obtained
is the address of Beneficiary set forth at the end of this Deed of Trust. A
carbon, photographic, or other reproduction of this Deed of Trust or of any
financing statement related to this Deed of Trust shall be sufficient as a
financing statement for any of the purposes referred to in this Section. This
Deed of Trust is also a “Construction Mortgage,” as defined in the UCC to the
extent it secures an obligation incurred for the construction of an improvement
on the Land (including the acquisition cost of the Land), or the refinancing of
an obligation incurred for the construction of an improvement on the Land
(including the acquisition cost of the Land).

 9
 

5.               Rights
and Duties of the Parties.

5.1       Representations and Warranties. Grantor represents and warrants that, except
as previously disclosed to Beneficiary in writing:

(a)             Grantor lawfully, possesses and
holds a leasehold interest in the Land in accordance with the Ground Lease, and
has not encumbered or assigned any of its right title or interest under, in and
to the Ground Lease or any of the lessee’s rights thereunder; and Grantor and
its successors and assigns warrant and shall forever defend title to the
leasehold interest in the Land, subject only to such exceptions and conditions
to title as Beneficiary has approved in its sole and absolute discretion (the “Permitted
Title Exceptions”) (and any later such encumbrances approved by Beneficiary in
writing), unto Trustee and Trustee’s successors and assigns against the claims
and demands of all persons claiming or to claim the same or any part thereof;

(b)             Grantor
has the full and unlimited power, right, and authority to encumber the Property
and assign the Rents;

(c)             This Deed of Trust creates a first
and prior lien on the Property free and clear of all liens, encumbrances, and
claims whatsoever, subject only to the Permitted Title Exceptions;

(d)             The
Property includes all property and rights which may be reasonably necessary or
desirable to promote the present and any reasonable future beneficial use and
enjoyment of the Land and the Improvements;

(e)             Grantor
owns any Property which is personal property free and clear of all liens,
encumbrances, and claims whatsoever, as well as any security agreements,
reservations of title, or conditional sales contracts, and there is no
presently effective financing statement affecting such personal property on
file in any public office nor is any of such personal property subject to a
security interest having priority over Beneficiary’s priority to the same
except with respect to junior indebtedness, if any, approved and permitted by
Beneficiary as a Permitted Title Exception and Grantor has the right to convey
and encumber such property and will warrant and defend such property against
the claims of all persons and parties;

(f)              The Property has frontage on and
direct access for ingress and egress to publicly dedicated streets;

(g)             Electricity
(and gas, if available), water facilities, sewer facilities and any other
necessary utilities are, and at all times hereafter shall be, available in
sufficient capacity to service the Property satisfactorily and any easements
necessary to the furnishing of such utilities are or will be granted and duly
recorded; and

(h)             Grantor’s
exact legal name, and, if Grantor is not an individual, organizational
identification number (if any assigned by Grantor’s state of incorporation or
organization) are correctly set forth in this Deed of Trust. If Grantor is an
individual, Grantor’s principal residence has for the preceding four months
been and will continue to be (unless Grantor notifies Beneficiary of any change
in writing at least thirty (30) days prior to the date of such change) the
address of the principal residence of Grantor as set forth at the end of this
Deed of Trust. If Grantor is not an individual, Grantor is an organization of
the type and (if not an unregistered entity) is incorporated in or organized
under the laws of the state specified in the introductory paragraph of this
Deed of Trust. If Grantor is an unregistered entity (including a general
partnership), it is organized under the laws of the state specified in the
introductory paragraph of this Deed of Trust. Grantor’s principal place of
business and chief executive office and the place where it keeps its Books and
Records has for the preceding four months (or, if less, the entire period of
the existence of Grantor) been

 10
 

and will continue to be (unless Grantor notifies Beneficiary of any
change in writing at least thirty (30) days prior to the date of such change)
the address of Grantor set forth at the end of this Deed of Trust.

5.2       Taxes and Assessments.

(a)             Grantor
shall pay prior to delinquency all taxes, levies, charges and assessments,
including assessments on appurtenant water stock (individually and
collectively, an “Imposition”), imposed by any public or quasi-public authority
or utility company that are (or if not paid, may become) a lien on all or part
of the Property or any interest in it, or that, if not paid, may cause any
decrease in the value of the Property or any part of it. If any Imposition
becomes delinquent, Beneficiary may require Grantor to present evidence that it
has been paid in full, on ten (10) days’ written notice by Beneficiary to
Grantor. Notwithstanding the foregoing provisions of this Section, Grantor may,
at its expense, contest the validity or application of any Imposition by
appropriate legal proceedings promptly initiated and conducted in good faith
and with due diligence, provided that (i) Beneficiary is reasonably satisfied
that neither the Property nor any part thereof or interest therein will be in danger
of being sold, forfeited, or lost as a result of such contest, and (ii) Grantor
shall have posted a bond or furnished other security as may be reasonably
required from time to time by Beneficiary; and provided further that if at any
time payment of any obligation imposed upon Grantor by this Section becomes
necessary to prevent a lien foreclosure sale or forfeiture or loss of the
Property, or any part thereof, then Grantor must pay the same in sufficient
time to prevent such sale, forfeiture, or loss.

(b)             Following
an Event of Default, Grantor shall, upon demand of Beneficiary, pay monthly to
Beneficiary an amount sufficient, as estimated by Beneficiary, to accumulate
the sum required to pay thirty (30) days prior to the due date thereof the
annual cost of any real property taxes and any assessments or other Impositions
and the estimated next premiums for hazard and other required insurance on the
Property. These funds will be held by Beneficiary (and may be commingled with
other funds of Beneficiary) without interest and will be released to Grantor
for payment of Impositions and insurance premiums, or directly applied to such
costs by Beneficiary, as Beneficiary may elect.

(c)             Notwithstanding
anything to the contrary in subsection (b) above, if a property tax reserve
account, taxes and insurance reserve account, or similar reserve for real
property taxes is required pursuant to the terms of the Loan Agreement or other
Loan Documents, then, if and at all such times as such reserve is required
pursuant to the terms of the Loan Agreement, Grantor shall pay to Beneficiary
the reserve deposits, including, if applicable, any initial reserve deposit and
any monthly or periodic reserve deposits, as described in the Loan Agreement or
other applicable Loan Document, and all terms and conditions set forth in
therein related to such reserve shall apply and are herein incorporated by
reference.

5.3         Performance of Secured Obligations.
Grantor shall promptly
pay and perform each Secured Obligation in accordance with its terms.

5.4         Liens, Charges, and Encumbrances.
Grantor shall
immediately discharge any lien on the Property that Beneficiary has not
expressly consented to in writing. Grantor shall pay when due each obligation
secured by or reducible to a lien, charge, or encumbrance which now does or
later may encumber all or part of the Property or any interest in it, whether
the lien, charge, or encumbrance is or would be senior or subordinate to this
Deed of Trust. This Section is subject to any right granted to Grantor in the
Loan Agreement to contest in good faith claims and liens for labor done and
materials and services furnished in connection with construction of the
Improvements. Grantor shall pay, perform and observe all obligations under any
Permitted Title Exceptions, and will not modify or permit modification of them
without Beneficiary’s prior written consent.

 11
 

5.5       Damages and Insurance and Condemnation
Proceeds.

(a)             Grantor hereby absolutely and irrevocably assigns to
Beneficiary, and authorizes the payor to pay to Beneficiary, the following
claims, causes of action, awards, payments, and rights to payment (whether
awarded or to be awarded or which may be awarded because of judicial action,
private action, settlement, or compromise):

(i)            All
awards of damages and all other compensation payable directly or indirectly
because of a condemnation, proposed condemnation or taking for public or
private use which affects all or part of the Property or any interest in it;
and

(ii)           All
other awards, claims, and causes of action, arising out of any warranty
affecting all or any part of the Property, or for damage or injury to or
decrease in value of all or part of the Property or any interest in it; and

(iii)          All
proceeds of any insurance policies payable because of loss sustained to all or
part of the Property, whether or not such insurance policies are required by
Beneficiary; and

(iv)          All
interest which may accrue on any of the foregoing.

(b)           Grantor shall immediately notify Beneficiary in writing
if:

(i)            Any
damage occurs or any injury or loss is sustained to all or any part of the
Property, or any action or proceeding relating to any such damage, injury, or
loss is commenced; or

(ii)           Any
offer is made, or any action or proceeding is threatened or commenced, which
relates to any actual or proposed condemnation or taking of all or part of the
Property.

(c)             If Beneficiary chooses to do so, Beneficiary may in its
own name appear in or prosecute any action or proceeding to enforce any cause
of action based on warranty, or for damage, injury, or loss to all or part of
the Property, and Beneficiary may make any compromise or settlement of the
action or proceeding with respect to its rights and interests. Beneficiary, if
it so chooses, may participate in any action or proceeding relating to
condemnation or taking of all or part of the Property, and may join Grantor in
adjusting any loss covered by insurance, and in connection therewith,
Beneficiary shall have the right to be represented by counsel of its choice.

(d)             All proceeds of these assigned claims and all other
property and rights which Grantor may receive or be entitled to shall be paid
to Beneficiary. In each instance, Beneficiary shall apply such proceeds first
toward reimbursement of all of Beneficiary’s costs and expenses of recovering
the proceeds, including reasonable attorneys’ fees. If, in any instance, each
and all of the following conditions are satisfied in Beneficiary’s reasonable
judgment, Beneficiary shall permit Grantor to use the balance of such proceeds
(the “Net Claims Proceeds”) to pay costs of repairing or reconstructing the
Property in the manner described below:

(i)           The plans and specifications, cost
breakdown, construction contract, construction schedule, contractor and payment
and performance bond for the work of repair or reconstruction shall all be
reasonably acceptable to Beneficiary; and

(ii)          Beneficiary
shall receive evidence reasonably satisfactory to it that after repair or
reconstruction, the Property would be at least as valuable as it was immediately
before the damage or condemnation occurred, and in this regard and
notwithstanding any other

 12
 

provisions
of the Loan Documents, Beneficiary may order an appraisal from an appraiser
acceptable to Beneficiary, the cost of which shall be borne by Grantor; and

(iii)          The
Net Claims Proceeds (together with the net proceeds of any rental interruption
insurance and reasonably projected rental receipts during the repair or
reconstruction period) shall be sufficient in Beneficiary’s determination to
pay for the total cost of repair or reconstruction, including all associated
development costs and interest and other sums projected to be payable on the
Secured Obligations until the repair or reconstruction is complete; or Grantor
shall provide its own funds in an amount equal to the difference between the
Net Claims Proceeds and a reasonable estimate, made by Grantor and found
acceptable by Beneficiary, of the total cost of repair or reconstruction; and

(iv)          Unless
otherwise agreed to by Beneficiary, Beneficiary shall receive evidence
satisfactory to it that, after the repair or reconstruction is complete, (1)
all non-residential leases acceptable to Beneficiary will continue (or a
replacement therefor reasonably satisfactory to Beneficiary immediately
commences); and (2) the Property will continue to operate in substantially the
same manner, and will generate the same debt service coverage as immediately
before the damage or condemnation occurred; and

(v)           Beneficiary shall be satisfied that
the repair or reconstruction can be completed prior to the maturity date of the
Note; and

(vi)          No
default or Event of Default (as defined in the applicable document, subject to
applicable notice and cure periods) shall have occurred and be continuing under
this Deed of Trust, the Note, the Loan Agreement or any other Loan Document.

If Beneficiary finds that such conditions have been met, Beneficiary
shall hold the Net Claims Proceeds, and any funds which Grantor is required to
provide, in an account and shall disburse them to Grantor to pay costs of
repair or reconstruction upon presentation of evidence reasonably satisfactory
to Beneficiary that repair or reconstruction has been completed satisfactorily
and lien-free, including partial progress payments of Net Claims Proceeds from time
to time, in accordance with a cost breakdown approved by Beneficiary and the
same procedures and subject to the same conditions as are set forth in the Loan
Agreement for Loan disbursements. However, if Beneficiary finds that one or
more of such conditions have not been satisfied, Beneficiary may apply the Net
Claims Proceeds to pay or prepay some or all of the Secured Obligations in such
order and proportions as Beneficiary may determine, all without affecting the
lien and security interest created by this Deed of Trust.

(e)           Notwithstanding the foregoing, in the event any
governmental agency or authority shall require, or commence any proceedings
for, the demolition of any buildings or structures comprising a substantial
part of the Improvements, or shall commence any proceedings to condemn or
otherwise take pursuant to the power of eminent domain a material portion of
the Land or Improvements, Beneficiary may, at its option, declare the Secured
Obligations to be immediately due and payable and apply any condemnation awards
or proceeds to the Secured Obligations.

(f)            Grantor hereby specifically, unconditionally,
and irrevocably waives all rights of a property owner granted under any
applicable law that provides for allocation of condemnation proceeds between a
property owner and a lienholder, and any other law or successor statute of
similar import.

 13
 

5.6         Surety Bond Proceeds.

(a)           Grantor hereby absolutely and irrevocably assigns to
Beneficiary, and authorizes the payor to pay to Beneficiary, all payments, rights
to payment, and all other compensation payable, directly or indirectly, under
any payment, performance, or other bond (each a “Surety Bond”) related to, or
issued in connection with, the construction of any Improvements or the
performance of any acts, related to the Property or any interest in it, whether
or not such Surety Bonds are required by Beneficiary.

(b)           Grantor shall immediately notify Beneficiary in writing
of:

(i)            Any
threatened or actual default or breach of any obligation under any Surety Bond;
or

(ii)           Any
action or inaction, including a breach by any contractor under their contract
(if applicable), which would give rise to the obligation of the payor/surety to
pay any sums or perform any acts pursuant to the terms of any Surety Bond.

(c)           If Beneficiary chooses to do so,
Beneficiary may in its own name appear in or prosecute any action or proceeding
to enforce any cause of action based on any claim under a Surety Bond, and
Beneficiary may make any compromise or settlement of any such action or
proceeding.

(d)             All proceeds of these assigned payments, rights to
payment, and compensation payable, directly or indirectly, under any Surety
Bond which Grantor may receive or be entitled to, shall be paid to Beneficiary.
In each instance, Beneficiary shall apply such proceeds first toward
reimbursement of all of Beneficiary’s costs and expenses of recovering the
proceeds, including reasonable attorneys’ fees. If Grantor desires to use the
balance of such proceeds (the “Net Bond Proceeds”) to pay the costs of
completing all or a part of the construction of certain of the Improvements,
and each and all of the following conditions are satisfied in Beneficiary’s
reasonable judgment, Beneficiary shall permit Grantor to pay such costs of
construction, in the manner described below:

(i)            The plans and specifications, cost
breakdown, construction contract (including any replacement contract),
construction schedule (including all revisions thereto), contractor (including
any replacement contractor), and, if required by Beneficiary, any replacement
payment and performance bond for the construction work, shall all be acceptable
to Beneficiary; and

(ii)           To
the extent allowed pursuant to the terms of the Surety Bond, Beneficiary shall
have approved any replacement contractor(s); and

(iii)         Beneficiary shall receive evidence
satisfactory to it that after the construction is complete, the Property would
be at least as valuable as it would have been if completed pursuant to the
original construction contract, and in this regard and notwithstanding any
other provisions of the Loan Documents, Beneficiary may order an appraisal from
an appraiser acceptable to Beneficiary, the cost of which shall be borne by
Grantor; and

(iv)       The Net Bond Proceeds shall be sufficient
in Beneficiary’s determination to pay for the total cost of the applicable
construction, including all associated development costs and interest and other
sums projected to be payable on the Secured Obligations until the applicable
construction is complete; or Grantor shall provide its own funds in an amount
equal to the difference between the Net Bond Proceeds and a reasonable
estimate, made by Grantor and found acceptable by Beneficiary, of the total
cost of such construction; and

 14
 

(v)           Beneficiary
shall be satisfied that the repair or reconstruction can be completed prior to
the maturity date of the Note; and

(vi)          No default or Event of Default (as
defined in the applicable document, subject to applicable notice and cure
periods) shall have occurred and be continuing under this Deed of Trust, the
Note, the Loan Agreement or any other Loan Document.

If Beneficiary finds that such conditions have been
met, Beneficiary shall hold the Net Bond Proceeds, and any funds which Grantor
is required to provide, in a non-interest-bearing account and shall disburse
them to Grantor to pay costs of construction upon presentation of evidence
reasonably satisfactory to Beneficiary that the construction has been completed
satisfactorily and lien-free, including partial progress payments of Net Bond
Proceeds from time to time, in accordance with a cost breakdown approved by
Beneficiary and the same procedures and subject to the same conditions, as are
set forth in the Loan Agreement for Loan disbursements. However, if Beneficiary
finds that one or more of such conditions have not been satisfied, Beneficiary
may apply the Net Bond Proceeds to pay or prepay some or all of the Secured
Obligations in such order and proportions as Beneficiary may choose, all
without affecting the lien and security interest created by this Deed of Trust.

(e)           Notwithstanding anything herein to
the contrary, to the extent that any of the terms of this Section conflict with
the terms of any Surety Bond which has been approved in writing by Beneficiary,
the terms of such Surety Bond shall control.

5.7         Maintenance and Preservation of
Property.

(a)           Grantor shall insure the Property as
required by the Loan Agreement and keep the Property in good condition and
repair.

(b)           Grantor
shall not remove or demolish the Property or any part of it, or alter, restore
or add to the Property, or initiate or allow any change in any zoning or other
land use classification which affects the Property or any part of it, except as
permitted or required by the Loan Documents or with Beneficiary’s express prior
written consent in each instance.

(c)          If all or part of the Property becomes
damaged or destroyed, Grantor shall promptly and completely repair and/or
restore the Property in a good and workmanlike manner in accordance with sound
building practices and notwithstanding the unavailability (for whatever reason)
of insurance proceeds from any Property insurer; provided, however this
subsection is subject to the provisions of Sections
5.5 and 5.6  above.

(d)         Grantor shall not commit or allow any
act upon or use of the Property which would violate: (i) any applicable law or
order of any governmental authority, whether now existing or later to be
enacted and whether foreseen or unforeseen; or (ii) any public or private
covenant, condition, restriction or equitable servitude affecting the Property.
Grantor shall not bring or keep any article on the Property or cause or allow
any condition to exist on it, if that could invalidate or would be prohibited
by any insurance coverage required to be maintained by Grantor on the Property
or any part of it under the Loan Documents.

(e)          Grantor shall not commit or allow
waste of the Property, including those acts or omissions characterized under
the Loan Agreement as waste that arise out of Hazardous Substances (as such
term is defined in the Loan Agreement).

(f)          Grantor shall perform all other acts which from the
character or use of the Property may be reasonably necessary to maintain and
preserve its value and utility.

 15
 

(g)           Grantor shall observe and perform all obligations of
Grantor under the Ground Lease, and any subleases or agreements related
thereto, and shall refrain from taking any actions prohibited by any lease or
leases, and Grantor shall preserve and protect such leasehold estate and its
value.

(h)           If any easement or right of way appurtenant to, or
recorded agreement which benefits, the Property exists or is hereafter entered
into, Grantor shall perform its obligations and duties under such easement,
right of way, or agreement, and shall take all such actions as may be necessary
to prevent such easement, right of way, or agreement from being terminated for
Grantor’s non-performance. Grantor irrevocably appoints Beneficiary its
attorney-in-fact, with full power of substitution, for the purpose of performing
any act to be performed by Grantor under any such easement, right of way, or
agreement, such power deemed to be coupled with an interest and therefore
irrevocable.

5.8          Trustee’s Acceptance of Trust. Trustee accepts this trust when this Deed of
Trust is recorded.

5.9          Releases, Extensions,
Modifications, and Additional Security.

(a)           From
time to time, Beneficiary may perform any of the following acts without
incurring any liability or giving notice to any person:

(i)            Release
any person liable for payment of any Secured Obligation; or

(ii)           Extend
the time for payment, or otherwise alter the terms of payment, of any Secured
Obligation; or

(iii)          Accept additional real or personal property of any kind as
security for any Secured Obligation, whether evidenced by deeds of trust,
mortgages, security agreements or any other instruments of security; or

(iv)          Alter, substitute or release any property securing the
Secured Obligations.

(b)           From
time to time, when requested to do so by Beneficiary in writing, Trustee may
perform any of the following acts without incurring any liability or giving
notice to any person:

(i)            Consent to the making of any plat or map
of the Property or any part of it; or

(ii)           Join
in granting any easement or creating any restriction affecting the Property; or

(iii)          Join
in any subordination or other agreement affecting this Deed of Trust or the
lien of it; or

(iv)          Reconvey
the Property or any part of it without any warranty.

5.10       Reconveyance; Release. When all of the Secured Obligations have been
paid and performed in full, and no further commitment to extend credit
continues under the Secured Obligations, then (except to the extent expressly
provided herein with respect to the survival of any indemnifications,
representations, warranties, and other rights which are to continue following
the release or reconveyance hereof) Trustee shall reconvey the Property from
the liens, security interests, conveyances and assignments

 16
 

herein, and this Deed of Trust and all promissory
notes and instruments evidencing the Secured Obligations shall be returned to
the appropriate party or parties. Any such reconveyance shall be without
warranty to the person or persons legally entitled to it. Such person or
persons shall pay any costs of recordation. Neither Beneficiary nor Trustee
shall have any duty to determine the rights of persons claiming to be rightful
grantees of any reconveyance.

5.11       Compensation, Exculpation,
Indemnification.

(a)            Grantor agrees to pay fees in the maximum amounts legally
permitted, or reasonable fees as may be charged by Beneficiary and Trustee when
the law provides no maximum limit, for any services that Beneficiary or Trustee
may render in connection with this Deed of Trust, including Beneficiary’s
providing a statement of the Secured Obligations or Trustee’s rendering of
services in connection with a release or reconveyance (full or partial).
Grantor shall also pay or reimburse all of Beneficiary’s and Trustee’s costs
and expenses which may be incurred in rendering any such services. Grantor
further agrees to pay or reimburse Beneficiary for all costs, expenses, and
other advances which may be incurred or made by Beneficiary or Trustee in any
efforts to enforce any terms of this Deed of Trust, including the exercise of
any rights or remedies afforded to Beneficiary or Trustee or both of them under
the remedies section below, whether any lawsuit is filed or not, or in
defending any action or proceeding arising under or relating to this Deed of
Trust, including reasonable attorneys’ fees and other legal costs (which shall
include reimbursement for the allocated costs of in-house counsel used by
Beneficiary and/or Trustee to the extent not prohibited by law), costs of any
Trustee’s Sale (as described below), any judicial foreclosure of this Deed of
Trust, and any cost of evidence of title. If Beneficiary chooses to dispose of
Property through more than one Trustee’s Sale or judicial foreclosure, Grantor
shall pay all costs, expenses, or other advances that may be incurred or made
by Trustee or Beneficiary in each of such Trustee’s Sales or judicial
foreclosure actions.

(b)           Beneficiary
shall not be directly or indirectly liable to Grantor or any other person as a
consequence of any of the following:

(i)            Beneficiary’s
exercise of or failure to exercise any rights, remedies or powers granted to
Beneficiary in this Deed of Trust;

(ii)           Beneficiary’s
failure or refusal to perform or discharge any obligation or liability of
Grantor under any agreement related to the Property or under this Deed of Trust;

(iii)          Any
waste committed by lessees of the Property or any other parties, or any
dangerous or defective condition of the Property; or

(iv)          Any
loss sustained by Grantor or any third party resulting from Beneficiary’s
failure to lease the Property, or from any other act or omission of Beneficiary
in operating or managing the Property, after an Event of Default, unless the
loss is caused solely by the gross negligence or willful misconduct of
Beneficiary.

Grantor hereby expressly waives and releases all liability of the types
described above, and agrees that no such liability shall be asserted against or
imposed upon Beneficiary.

(c)            Grantor agrees to indemnify, defend, and hold Trustee and
Beneficiary harmless, for, from, and against, and reimburse them for, all
losses, damages, liabilities, claims, causes of action, judgments, penalties,
court costs, reasonable attorneys’ fees and other legal expenses and expenses
of professional consultants and experts, cost of evidence of title, cost of
evidence of value, and other costs and expenses, including the settlement of
any such matter, excepting those arising out of, or resulting, solely from

 17
 

Beneficiary’s or Trustee’s, as the case may be, gross negligence or
willful misconduct, which either may suffer or incur:

(i)            In performing any act required or
permitted by this Deed of Trust or any of the other Loan Documents or by law;

(ii)          Because of any failure of Grantor to
perform any of Grantor’s obligations;

or

(iii)         Because
of any alleged obligation of or undertaking by Beneficiary to perform or
discharge any of the representations, warranties, conditions, covenants, or
other obligations in any document relating to the Property other than the Loan
Documents.

This agreement by Grantor to indemnify
Trustee and Beneficiary shall survive payoff, termination, or the release and
cancellation of any or all of the Secured Obligations, and the full or partial
release and/or reconveyance of this Deed of Trust.

(d)           Grantor shall pay all obligations to
pay money arising under this Section immediately upon written demand by Trustee
or Beneficiary. Each such obligation shall be added to, and considered to be
part of, the principal of the Note, and shall bear interest from the date the
obligation arises at the Default Rate (as such term may be defined in the
Note), or if no Default Rate is specified, at five percent (5%) in excess of
the Stated Rate. For purposes hereof, “Stated Rate” means the stated interest
rate in effect from time to time under the Note and/or other debt instrument
evidencing the Loan; provided that if more than one rate of interest is in
effect, the highest rate shall be used.

5.12       Defense
and Notice of Claims and Actions. At
Grantor’s sole expense, Grantor shall protect, preserve and defend the Property
and title to and right of possession of the Property, and the security of this
Deed of Trust and the rights and powers of Beneficiary and Trustee created
under it, against all adverse claims. Grantor shall give Beneficiary and
Trustee prompt notice in writing if any claim is asserted which does or could
affect any of such matters, or if any action or proceeding is commenced which
alleges or relates to any such claim.

5.13       Subrogation.
Beneficiary shall be subrogated to the liens of
all encumbrances affecting the Property, whether released or not, which are
discharged in whole or in part by Beneficiary in accordance with this Deed of
Trust or with the proceeds of any loan secured by this Deed of Trust.

5.14       Site
Visits, Observation and Testing. Beneficiary
and its agents and representatives and the other Indemnified Parties (as such
term is defined in the Loan Agreement), and their agents and representatives,
shall have the right at any reasonable time to enter and visit the Property for
the purposes of observing the Property, performing appraisals, taking and
removing soil or groundwater samples, and conducting tests on any part of the
Property. The Indemnified Parties have no duty, however, to visit or observe
the Property or to conduct tests, and no site visit, observation, or testing by
any Indemnified Party shall impose any liability on any Indemnified Party. In
no event shall any site visit, observation, or testing by any Indemnified Party
be a representation that Hazardous Substances (as such term is defined in the
Loan Agreement) are or are not present in, on, or under the Property, or that
there has been or shall be compliance with any law, regulation, or ordinance
pertaining to Hazardous Substances or any other applicable governmental law.
Neither Grantor nor any other party is entitled to rely on any site visit,
observation, or testing by any Indemnified Party. The Indemnified Parties owe
no duty of care to protect Grantor or any other party against, or to inform
Grantor or any other party of, any Hazardous Substances or any other adverse
condition affecting the Property. The Indemnified Parties may in their
discretion disclose to Grantor or any other party any report or findings made
as a result of, or in connection with, any site visit,

 18
 

observation, or testing by the Indemnified Parties. Grantor understands
and agrees that the Indemnified Parties make no representation or warranty to
Grantor or any other party regarding the truth, accuracy, or completeness of
any such report or findings that may be disclosed. Grantor also understands
that, depending on the results of any site visit, observation, or testing by
any Indemnified Party which are disclosed to Grantor, Grantor may have a legal
obligation to notify one or more environmental agencies of the results. Any
Indemnified Party shall give Grantor reasonable notice before entering the
Property. Such Indemnified Party shall make reasonable efforts to avoid
interfering with Grantor’s use of the Property in exercising any rights
provided in this Section. In connection with any such site visit, observation,
or testing, Grantor shall have any rights with respect to the release and/or
disclosure of environmental reports as set forth in the Loan Agreement.

5.15        Notice of
Change. Grantor will not cause or permit any change to
be made in (a) its name, identity, or corporate, partnership, limited liability
company, or other entity structure, (b) its jurisdiction of organization (c)
its organizational identification number, (d) its place of business or, if more
than one, its chief executive office, (e) its mailing address, or (f) any
change in the location of any Property, unless Grantor shall have notified
Beneficiary in writing of such change at least thirty (30) days prior to the
effective date of such change, and shall have first taken all action required
by Beneficiary for the purpose of further perfecting or protecting the lien and
security interest of Beneficiary in the Property. Unless otherwise approved by
Beneficiary in writing, all Property that consists of personal property (other
than Books and Records) will be located on the Land and all Books and Records
will be located at Grantor’s place of business or chief executive office if
Grantor has more than one place of business.

5.16        Further
Assurances. Grantor shall, promptly on request of
Beneficiary, (a) correct any defect, error or omission which may be discovered
in the contents, execution, or acknowledgment of this Deed of Trust or any
other Loan Document; (b) execute, authenticate, acknowledge, deliver, procure,
and record and/or file and/or authorize the filing of such further documents
(including, without limitation, further deeds of trust, security agreements,
financing statements, financing statement amendments, continuation statements,
and assignments of rents or leases) and do such further acts as may be
necessary, desirable, or proper (i) to carry out more effectively the purposes
of this Deed of Trust and the other Loan Documents, (ii) to more fully identify
and subject to the liens and security interests hereof any property intended to
be covered hereby (including specifically, but without limitation, any
renewals, additions, substitutions, replacements, or appurtenances to the
Property), or (iii) as deemed advisable by Beneficiary to protect the lien or security
interest hereunder against the rights or interests of third persons; and (c)
provide such certificates, documents, reports, information, affidavits and
other instruments and do such further acts as may be necessary, desirable or
proper to enable Beneficiary to comply with the requirements or requests of any
agency having jurisdiction over Beneficiary or any examiners of such agencies
with respect to the Secured Obligations, the Grantor, or the Property. Grantor
shall pay all costs connected with any of the foregoing within five (5) days
after the written demand by Trustee or Beneficiary. If not paid when due, such
costs shall be added to, and considered to be part of, the principal of the
Note, and shall bear interest from the date of such written demand at the
Default Rate (as such term may be defined in the Note), or if no Default Rate
is specified, at three percent (3%) in excess of the Stated Rate.

5.17        Leasehold.
Grantor agrees not to amend, modify, extend,
renew or terminate the leasehold estate which constitutes a portion of the
Property, any interest therein, or the lease granting such leasehold estate
without the prior written consent of Beneficiary, which consent may be withheld
by Beneficiary in its absolute and sole discretion. Consent to one amendment,
modification, extension or renewal shall not be deemed to be a waiver of the
right to require consent to other, future or successive amendments,
modifications, extensions or renewals. Grantor agrees to perform all
obligations and agreements under said leasehold and shall not take any action
or omit to take any action which would effect or permit the termination of said
leasehold. Grantor agrees to promptly notify Beneficiary in writing with
respect to any default or alleged default by any party thereto and to promptly
deliver to Beneficiary

 19
 

copies of all notices, demands, complaints or other communications
received or given by Grantor with respect to any such default or alleged
default. Beneficiary shall have the option to cure any such default and to
perform any or all of Grantor’s obligations thereunder. All sums expended by
Beneficiary in curing any such default shall be secured hereby and shall be
immediately due and payable without demand or notice and shall bear interest
from date of expenditure at the Default Rate.

5.18      Ground
Lease - Grantor Representations, Warranties, and Agreements. Grantor hereby represents, warrants, covenants
and agrees that:

(a)           This Deed of Trust is duly executed
and delivered in conformity with, and does not violate or breach any term of
covenant of, the Ground Lease.

(b)           Grantor will promptly pay, when due
and payable, the net rent, additional rent, taxes and all other sums and
charges mentioned in and made payable pursuant to the Ground Lease.

(c)           Grantor will promptly perform and
observe all of the terms, covenants and conditions required to be performed and
observed by Grantor as lessee under the Ground Lease, within the period
(exclusive of grace periods) provided in the Ground Lease, or such lesser
periods (exclusive of grace periods) as are provided in this Deed of Trust, and
will do all things necessary to preserve and to keep unimpaired its rights
under the Ground Lease. Grantor specifically acknowledges Beneficiary’s right,
while any default by Grantor under any Ground Lease remains uncured, to perform
the defaulted obligations and take all other actions which Beneficiary
reasonably deems necessary to protect its interests with respect thereto, and
Grantor hereby irrevocably appoints Beneficiary its true and lawful
attorney-in-fact in its name or otherwise to execute all documents, and perform
all other acts, which Beneficiary reasonably deems necessary to preserve its or
Grantor’s rights with respect to any Leasehold. Such appointment is deemed
coupled with an interest.

(d)           Grantor will promptly notify
Beneficiary in writing of any default (including the expiration of all notice
and cure periods) by Grantor in the performance or observance of any of the
terms, covenants or conditions on the part of Grantor to be performed or
observed under the Ground Lease.

(e)           Grantor will (i) promptly notify
Beneficiary in writing of the receipt by Grantor of any notice from the Ground
Lessor and of any notice noting or claiming any default by Grantor in the
performance or observance of any of the terms, covenants or conditions on the
part of Grantor to be performed or observed under the Ground Lease; (ii)
promptly notify Beneficiary in writing of the receipt by Grantor of any notice
from the Ground Lessor to Grantor of termination of the Ground Lease pursuant
to the provisions of the Ground Lease; (iii) promptly cause a copy of each such
notice received by Grantor from the Ground Lease to be delivered to
Beneficiary; provided, however, that no such delivery by Grantor to Beneficiary
of any such notices shall be deemed to waive, release, or modify any obligation
of the Ground Lessor to separately provide such notice to Beneficiary pursuant
to the terms of the Ground Lease; and (iv) will promptly notify Beneficiary in
writing of any default by the Ground Lessor in the performance or observance of
any of the terms, covenants or conditions on the part of the Ground Lessor to
be performed or observed.

(f)            Grantor will promptly notify Beneficiary in writing of
all arbitration or other proceedings regarding the Property or the Ground
Lease. Beneficiary shall have the right to participate in any such arbitration
proceedings in association with Grantor or on its own behalf as an interested
party and no determination made in such proceeding or settlement or agreement
in connection therewith shall be binding upon Beneficiary unless and until
Beneficiary has participated in such proceeding and/or consented to such
settlement or agreement.

 20

(g)                                      Grantor will not, without the prior written
consent of Beneficiary (which may be granted or withheld in the sole and
absolute discretion of Beneficiary), terminate, materially modify or surrender
or suffer or permit any termination, material modification or surrender of the
Ground Lease.

(h)                                      Grantor
will, within thirty (30) days after written demand from Beneficiary, obtain
from the Ground Lessor and deliver to Beneficiary a certificate stating that
such Ground Lease is in full force and effect, is unmodified, that no notice of
termination thereon has been served on Grantor, stating that no default or
event which with notice or lapse of time (or both) would become a default is
existing under the Ground Lease (or specifying the nature of any defaults or events
which with notice or lapse of time, or both, would become a default under the
Ground Lease), stating the date to which net rent has been paid, and containing
such other statements and representations as may be requested by Beneficiary.

(i)                                          Grantor
will furnish to Beneficiary, within fifteen (15) days after request by
Beneficiary, proof of payment of all items that are required to be paid by
Grantor pursuant to the Ground Lease and proof of payment which is required to
be given to the Ground Lessor.

(j)                                          Grantor shall not consent to any waiver of
Ground Lessor’s obligations under the Ground Lease, or any material
modification or cancellation of any provision of the Ground Lease nor to the
subordination of the Ground Lease to any mortgage of the fee interest of the
Ground Lessor, except as expressly provided in this Deed of Trust or a writing
signed by Beneficiary.

(k)                                       Grantor shall execute and deliver, on request
of Beneficiary, such instruments as Beneficiary may deem useful or require to
permit Beneficiary to cure any default under the Ground Lease or permit
Beneficiary to take such other action as Beneficiary considers desirable to
cure or remedy the matter in default and preserve the interest of Beneficiary
in the Premises.

(I)                                         Grantor
agrees and acknowledges that, to the extent any provision of this Deed of Trust
conflicts with any term or condition of the Ground Lease, the terms of this
Deed of Trust shall control.

(m)                                    Grantor
shall not subordinate the Ground Lease or any of its leasehold estate thereunder
to any deed of trust or other encumbrance of, or lien on, any interest in the
real property subject to the Ground Lease without the prior written consent of
Beneficiary. Any such subordination without such consent shall, at Beneficiary’s
option, be void.

(n)                                      Grantor
shall exercise any option or right to renew or extend the term of the Ground
Lease at least six (6) months prior to the date of termination (or if later,
then the earliest date for such exercise provided in the Ground Lease) of any
such option, or right, shall give immediate written notice thereof to
Beneficiary, and shall execute, deliver and record any documents requested by
Beneficiary to evidence the lien of this Deed of Trust on such extended or
renewed lease term. If Grantor fails to exercise any such option or right as
required herein, Beneficiary may exercise the option or right as Grantor’s
agent and attorney-in-fact pursuant to this Deed of Trust, or in Beneficiary’s
own name or in the name of and on behalf of a nominee of Beneficiary, as
Beneficiary chooses in its absolute discretion. Such appointment is deemed
coupled with an interest.

(o)                                      Without
limiting the provisions of this Deed of Trust, Grantor hereby specifically
assigns to Beneficiary, as security for the Secured Obligations, all prepaid
rents and security deposits and all other security which the Ground Lessor
under the Ground Lease holds for the performance of Grantor’s obligations
thereunder.

(p)                                      Promptly
upon demand by Beneficiary, Grantor shall use reasonable efforts to obtain from
the Ground Lessor under the Ground Lease and furnish to Beneficiary an estoppel
of such

 21
 

Ground Lessor stating the date through which rent has been paid, whether
or not there are any defaults, and the specific nature of any claimed defaults.

(q)                                      Grantor
shall notify Beneficiary promptly in writing of any request by either party to
any Ground Lease for arbitration, appraisal or other proceedings relating to
the Ground Lease and of the institution of any such proceeding, and shall
promptly deliver to Beneficiary a copy of all determinations in any such
proceeding. Beneficiary shall have the right, but not the obligation, following
written notice to Grantor, to participate in any such proceeding in association
with Grantor or on its own behalf as an interested party. Grantor shall notify
Beneficiary promptly in writing of the institution of any legal proceeding
involving obligations under the Ground Lease, and Beneficiary may intervene in
any such legal proceeding and be made a party, at its option. Grantor shall
promptly provide Beneficiary with a copy of any decision rendered in connection
with any such proceeding.

(r)                                         To
the extent not expressly prohibited by law, the price payable by Grantor or any
other party in the exercise of the right of redemption, if any, from any sale
under, or decree of foreclosure of, this Deed of Trust shall include all rents
and other amounts paid and other sums advanced by Beneficiary on behalf of
Grantor as the ground lessee under the Ground Lease.

(s)                                       In
addition to all other Events of Default described in this Deed of Trust, the
occurrence of any of the following shall be an Event of Default hereunder:

(i)                                A breach or default by Grantor under any Lease
(subject to any applicable notice and cure periods); or

(ii)                             The
occurrence of any event or circumstance which gives the Ground Lessor under any
Lease a right to terminate such Lease.

(t)                                         As
used in this Deed of Trust, the “Bankruptcy Code” shall mean 11 U.S.C. §§ 101 et
seq., as
modified and/or recodified from time to time. Notwithstanding anything to the
contrary contained herein with respect to the Ground Lease:

(i)                                Grantor
shall not treat the Ground Lease as terminated by any election made under
Section 365(h) of the Bankruptcy Code of 1978 or under any similar law or right
of any nature, and hereby assigns to Beneficiary any right to acquiesce in any
such termination.

(ii)                             The
lien of this Deed of Trust attaches to all of Grantor’s rights under Subsection
365(h) of the Bankruptcy Code, including without limitation any and all
elections to be made thereunder, any and all rights under the Ground Lease
which Grantor is entitled to retain pursuant to 11 U.S.C. § 365(h)(1)(A)(ii) in
the event of a rejection under the Bankruptcy Code of such Lease by the Ground
Lessor thereunder (or any trustee thereof), and any and all rights of offset
under or as described in 11 U.S.C. § 365(h)(1)(B).

(iii)                          Grantor
acknowledges and agrees that, as the beneficiary under this Deed of Trust and
by operation of 11 U.S.C. §365(h)(1)(D), Beneficiary has, and until this Deed
of Trust has been fully reconveyed continuously shall have, whether before or
after any default under any of the Secured Obligations or the taking of any
action to enforce any of Beneficiary’s rights and remedies under this Deed of
Trust or any foreclosure sale hereunder, the complete, unfettered and exclusive
right, in its sole and absolute discretion, to elect (the “365(h) Election”)
whether (i) the Ground Lease that has been rejected under the Bankruptcy Code
by the Ground Lessor thereunder (or any trustee therefor) shall be treated as
terminated under 11 U.S.C. §365(h)(1)(A)(i), or (ii) the rights under such
Ground Lease that are in or appurtenant to the real property, as described in
11 U.S.C. §365(h)(1)(A)(ii), should be retained pursuant to that

 22
 

subsection.
To the extent that, notwithstanding the preceding sentence and 11 U.S.C.
§365(h)(1)(D), Grantor now or at any time in the future has any right to make,
or to participate in or otherwise in any manner affect the making of, the
365(h) Election with respect to the Ground Lease, Grantor hereby absolutely
assigns and conveys to Beneficiary any and all such rights, and all of Grantor’s
right, title, and interest therein, which may be used and exercised by
Beneficiary completely, exclusively, and without any restriction whatsoever, in
Beneficiary’s sole and absolute discretion, whether before or after any default
upon any of the Secured Obligations, the taking of any action to enforce any of
Beneficiary’s rights and remedies under this Deed of Trust, or any foreclosure
sale hereunder. Grantor hereby unconditionally and irrevocably appoints
Beneficiary as its attorney-in-fact to exercise Grantor’s right, if any, to
make, or participate in or otherwise in any matter affect the making of, the
365(h) Election with respect to the Ground Lease. Such appointment shall be
deemed coupled with an interest. Grantor shall not in any manner impede or
interfere with any action taken by Beneficiary and, at the request of
Beneficiary, Grantor shall take or join in the taking of any action to make, or
participate in or otherwise in any manner affect the making of, the 365(h)
Election with respect to the Ground Lease, in such manner as Beneficiary
determines in its sole and absolute discretion. Unless and until instructed to
do so by Beneficiary (as determined by Beneficiary in its sole and absolute
discretion), Grantor shall not take any action to make, or participate in or
otherwise in any manner affect the making of, the 365(h) Election with respect
to the Ground Lease, including in particular, but without limitation, any
election to treat the Ground Lease as terminated. Beneficiary shall have no
obligation whatsoever to Grantor or any other person or entity in connection
with the making of the 365(h) Election with respect to the Ground Lease or any
instruction by Beneficiary to Grantor given, withheld or delayed in respect
thereof, nor shall Beneficiary have any liability to Grantor or any other
person or entity arising from any of the same.

(iv)                         As
security for the Secured Obligations, Grantor hereby irrevocably assigns to
Beneficiary all of Grantor’s rights to damages arising from any rejection by
the Ground Lessor (or any trustee thereof) of the Ground Lease under the
Bankruptcy Code. Beneficiary and Grantor shall proceed jointly or in the name
of Grantor in respect of any claim or proceeding relating to the rejection of
the Ground Lease, including without limitation the right to file and prosecute
any proofs of claim, complaints, motions and other documents in any case in
respect of such Ground Lessor under the Bankruptcy Code. This assignment shall
continue in effect until all of the Secured Obligations have been satisfied in
full. Any amounts received by Beneficiary or Grantor as damages arising from
the rejection of the Ground Lease as aforesaid shall be applied first to all
costs reasonably incurred by Beneficiary (including attorneys’ fees) in
connection with this subsection (c) and then in accordance with other
applicable provisions of this Deed of Trust.

(v)                            If,
pursuant to the Bankruptcy Code, Grantor seeks to offset against the rent
reserved in the Ground Lease the amount of any damages caused by the
nonperformance of the Ground Lessor’s obligations after the rejection by the
Ground Lessor (or any trustee thereof) of such Ground Lease, Grantor shall,
prior to effecting such offset, notify Beneficiary in writing of its intent to
do so, setting forth the amounts proposed to be offset and, in the event that
Beneficiary objects, Grantor shall not effect any offset of the amounts to
which Beneficiary objects. If Beneficiary fails to object within ten (10) days
following receipt of such notice, Grantor may offset the amounts set forth in
Grantor’s notice.

(vi)                         If
any legal proceeding is commenced with respect to the Ground Lease in
connection with any case under the Bankruptcy Code, Beneficiary and Grantor
shall cooperatively conduct any such proceeding with counsel reasonably agreed
upon between Grantor and Beneficiary. Grantor shall, upon demand, pay to
Beneficiary all costs (including attorneys’ fees) reasonably incurred by
Beneficiary in connection with any such proceeding.

 23
 

(vii)                         Grantor shall immediately notify Beneficiary orally upon learning of any
filing by or against the Ground Lessor under the Ground Lease of a petition
under the Bankruptcy Code. Grantor shall thereafter promptly give written
notice of such filing to Beneficiary, setting forth any information available
to Grantor with respect to the date of such filing, the court in which such
petition was filed, and the relief sought therein. Grantor shall promptly
deliver to Beneficiary all notices, pleadings and other documents received by
Grantor in connection with any such proceeding.

The generality of the provisions of this section relating to Ground
Lease shall not be limited by other provisions of this Deed of Trust setting
forth particular obligations of Grantor which are also required by Grantor as
the lessee under the Ground Lease.

6.                                     Accelerating Transfers,
Default and Remedies.

6.1                                 Accelerating Transfers.

(a)                                  “Accelerating
Transfer” means any sale, contract to sell, conveyance, encumbrance, pledge,
mortgage, lease not expressly permitted under this Deed of Trust or the Loan
Agreement, or other transfer of all or any material part of the Property or any
interest in it, whether voluntary, involuntary, by operation of law, or
otherwise. If Grantor is a corporation, “Accelerating Transfer” also means any
transfer or transfers of shares that would require the transferee (or group as defined
in Section 13(d)(3) of the Securities Exchange Act of 1934, as amended (the “Exchange
Act”)) to file a statement on Schedule 13D pursuant to Rule 13d-1(e) of the
Exchange Act, provided, that in addition to being required to file a
statement on Schedule 13D pursuant to Rule 13d-1(e), such transferee (or group
as defined in Section 13d(3) of the Exchange Act) must possess, in the
aggregate, more than fifty percent (50%) of the voting power or more than fifty
percent (50%) of the direct or indirect beneficial ownership of Grantor. If
Grantor is a partnership, “Accelerating Transfer” also means withdrawal or
removal of any partner, dissolution of the partnership under applicable law, or
any transfer or transfers of, in the aggregate, more than fifty percent (50%)
of the partnership interests. If Grantor is a limited liability company, “Accelerating
Transfer” also means withdrawal or removal of any member, termination of the
limited liability company, or any transfer or transfers of, in the aggregate,
more than fifty percent (50%) of the voting power or, in the aggregate, more
than fifty percent (50%) of the ownership interests in Grantor.

(b)                                 Grantor
acknowledges that Beneficiary is making one or more advances under the Loan
Agreement in reliance on the expertise, skill, and experience of Grantor; thus,
the Secured Obligations include material elements similar in nature to a
personal service contract. In consideration of Beneficiary’s reliance, Grantor
agrees that Grantor shall not make any Accelerating Transfer, other than a
transfer allowed pursuant to the express terms of the Loan Documents, unless
the transfer is preceded by Beneficiary’s express written consent to the
particular transaction and transferee. Beneficiary may withhold such consent in
its sole and absolute discretion. If any Accelerating Transfer occurs, an Event
of Default will occur under the Loan Agreement, and Beneficiary may implement
available rights and remedies under the Loan Agreement and the other Loan
Documents including declaration of all of the Secured Obligations to be
immediately due and payable, and Beneficiary and Trustee may invoke any rights
and remedies under this Deed of Trust. Grantor acknowledges the materiality of
the provisions of this Section as a covenant of Grantor, given individual
weight and consideration by Beneficiary in entering into the Secured
Obligations, and that any Accelerating Transfer in violation of the prohibited
transfer provisions herein set forth shall result in a material impairment of
Beneficiary’s interest in the Property and be deemed a breach of the foregoing
covenant.

(c)                                  Notwithstanding
the foregoing, Beneficiary acknowledges and agrees that any transfer
specifically allowed or permitted by, and made in accordance with, the terms of
the Loan Agreement, if any, shall not  be
an Accelerating Transfer under this Section.

 24
 

6.2                                 Events of Default. Grantor will be in default under this Deed of
Trust upon the occurrence of any one or more of the following events (some or
all collectively, “Events of Default;” any one singly, an “Event of Default”):

(a)                                  Grantor
fails to perform any obligation to pay money which arises under this Deed of
Trust, and does not cure that failure within ten (10) days after written notice
from Beneficiary or Trustee; or

(b)                                 Grantor
fails to perform any obligation arising under this Deed of Trust other than one
to pay money; or

(c)                                  A default or Event of Default (as such term is
defined in the applicable document, subject to any applicable notice and cure
periods) has occurred under the Loan Agreement or any other Loan Document or
any other Secured Obligation; or

(d)                                 Grantor
makes or permits the occurrence of an Accelerating Transfer; or

(e)                                  Any default (subject to any applicable notice
and cure period) occurs under any other mortgage, deed of trust, security deed,
or other security instrument on all or any part of the Property, or under any
obligation secured by such security instrument, whether such security
instrument is prior to or subordinate to this Deed of Trust.

6.3                                 Remedies. Except as otherwise expressly set forth in the
Loan Agreement or any other Loan Document, at any time after an Event of
Default, Beneficiary and Trustee shall be entitled to invoke any and all of the
rights and remedies described below or permitted by applicable law or in
equity. All of such rights and remedies shall be cumulative, and the exercise
of any one or more of them shall not constitute an election of remedies.

(a)                                  Acceleration.
Beneficiary may declare any or all of the Secured Obligations to be due and
payable immediately and may terminate any Loan Document in accordance with its
terms.

(b)                                 Receiver.
Beneficiary may apply to any court of competent jurisdiction for, and obtain
appointment of, a receiver for the Property. Grantor hereby consents to such
appointment.

(c)                                  Entry.
Beneficiary, in person, by agent or by court-appointed receiver, may enter,
take possession of, manage and operate all or any part of the Property, and in
its own name or in the name of Grantor sue for or otherwise collect any and all
Rents, including those that are past due, and may also do any and all other
things in connection with those actions that Beneficiary may in its sole and
absolute discretion consider necessary and appropriate to protect the security
of this Deed of Trust. Such other things may include: taking and possessing all
of Grantor’s or the then owner’s Books and Records; entering into, enforcing,
modifying, or canceling leases on such terms and conditions as Beneficiary may
consider proper; obtaining and evicting tenants; fixing or modifying Rents (but
not in excess of any applicable maximum low income rents for residential
tenants); collecting and receiving any payment of money owing to Grantor;
completing any unfinished construction; contracting for and making repairs and
alterations; performing such acts of cultivation or irrigation as necessary to
conserve the value of the Property; and/or, if applicable, preparing for
harvest, harvesting and selling any crops that may be growing on the property.
If Beneficiary so requests, Grantor shall assemble all of the Property that has
been removed from the Land and make all of it available to Beneficiary at the
site of the Land. Grantor hereby irrevocably constitutes and appoints
Beneficiary as Grantor’s attorney-in-fact, with full power of substitution, to
perform such acts and execute such documents as Beneficiary in its sole and
absolute discretion may consider to be appropriate in connection with taking
these measures, including endorsement of Grantor’s name on any instruments. The
appointment granted in this Section shall be deemed to be a power coupled with
an interest. Regardless of

 25
 

any provision of this Deed of Trust, or any other Loan Document,
Beneficiary shall not be considered to have accepted any property other than
cash or immediately available funds in satisfaction of any obligation of
Grantor to Beneficiary, unless Beneficiary has given express written notice of
Beneficiary’s election of that remedy in accordance with applicable law.
Grantor agrees to deliver to Beneficiary all Books and Records pertaining to
the Property, including computer-readable memory and any computer hardware or
software necessary to access or process such memory, as may reasonably be
requested by Beneficiary in order to enable Beneficiary to exercise its rights
under this Section.

(d)                                 Cure;
Protection of Security. Either Beneficiary or Trustee may cure
any breach or default of Grantor, and if it chooses to do so in connection with
any such cure, Beneficiary or Trustee may also enter the Property and/or do any
and all other things that it may, in its sole and absolute discretion, consider
necessary and appropriate to protect the security of this Deed of Trust. Such
other things may include: appearing in and/or defending any action or
proceeding that purports to affect the security of, or the rights or powers of
Beneficiary or Trustee under, this Deed of Trust; paying, purchasing,
contesting or compromising any encumbrance, charge, lien or claim of lien,
which in Beneficiary’s or Trustee’s sole judgment is or may be senior in
priority to this Deed of Trust; obtaining insurance and/or paying any premiums
or charges for insurance required to be carried under the Loan Documents;
otherwise caring for and protecting any and all of the Property; and/or
employing counsel, accountants, contractors and other appropriate persons to
assist Beneficiary or Trustee. Beneficiary and Trustee may take any of the
actions permitted under this Section either with or without giving notice to
any person.

(e)                                  UCC
Remedies. Beneficiary may exercise any or all of the
remedies granted to a secured party under the UCC.

(f)                                    Judicial
Action. Beneficiary may bring an action in any court
of competent jurisdiction to foreclose this Deed of Trust in the manner
provided by law for the foreclosure of deeds of trusts or mortgages on real
property and/or to obtain specific enforcement of any of the covenants or
agreements of this Deed of Trust. If Beneficiary brings such an action, Grantor
agrees to pay Beneficiary’s reasonable attorneys’ fees and court costs as
determined by the court.

(g)                                 Power
of Sale. Except to the extent prohibited by applicable
law, under the power of sale hereby granted, Beneficiary shall have the
discretionary right to cause some or all of the Property, including any
Property which constitutes personal property, to be sold or otherwise disposed
of in any combination and in any manner permitted by applicable law. To the
extent that a sale by non-judicial power of sale is prohibited by applicable
law, and a judicial foreclosure is required, the terms and provisions of this
subsection (g) shall be inapplicable.

(i)                          Sales of Personal Property.

(A)                              For purposes of this power of sale, and to the
extent not prohibited by applicable law, Beneficiary may elect to treat as
personal property any Property which is intangible or which can be severed from
the Land or Improvements without causing structural damage. If it chooses to do
so, Beneficiary may dispose of any personal property separately from the sale
of real property, in any manner permitted by the UCC, including any public or
private sale, or in any manner permitted by any other applicable law. Any
proceeds of any such disposition shall not cure any Event of Default or
reinstate any Secured Obligation.

(B)                                In connection with any sale or other
disposition of such personal property disposed of separately from the sale of
the real property, Grantor agrees that the following procedures constitute a
commercially reasonable sale. Beneficiary shall mail written notice of the sale
to Grantor not later than ten (10) days prior to the date of public

 26
 

sale
of the Property or prior to the date after which a private sale of the Property
will be made, and such notice shall constitute reasonable notice; provided
that, if Beneficiary fails to comply with this subsection in any respect, its
liability for such failure shall be limited to the liability, if any, imposed
on it as a matter of law under the UCC. Upon receipt of any written request,
Beneficiary will make the personal property available to any bona fide
prospective purchaser for inspection during reasonable business hours.
Notwithstanding, Beneficiary shall be under no obligation to consummate a sale
if, in its judgment, none of the offers received by it equal the fair value of
the personal property offered for sale. The foregoing procedures do not
constitute the only procedures that may be commercially reasonable.

(ii)                            Sales of Real Property or Mixed Collateral.

(A)                              Beneficiary
may choose to dispose of some or all of the Property which consists solely of
real property in any manner then permitted by applicable law. In its sole and
absolute discretion, and to the extent not prohibited by applicable law,
Beneficiary may also or alternatively choose to dispose of some or all of the
Property, in any combination consisting of both real and personal property,
together in one sale to be held in accordance with the law and procedures
applicable to real property, as may be permitted by the UCC. Grantor agrees
that such a sale of personal property together with real property constitutes a
commercially reasonable sale of the personal property. For purposes hereof,
either a sale of real property alone, or a sale of both real and personal
property together in accordance with the UCC, will sometimes be referred to as
a “Trustee’s Sale.”

(B)                                Before
any Trustee’s Sale, Beneficiary or Trustee shall give such statement of breach
or nonperformance, notice of sale, and/or notice of default as may then be
required by applicable law. When all time periods then legally mandated have
expired, and after such notice of sale and/or other notice as may then be
legally required has been given, Trustee shall sell the property being sold at
a public auction to be held at the time and place specified in the notice of
sale. Neither Trustee nor Beneficiary shall have any obligation to make demand
on Grantor before any Trustee’s Sale. From time to time in accordance with then
applicable law, Trustee may, and in any event at Beneficiary’s request shall,
postpone any Trustee’s Sale by public announcement at the time and place
noticed for that Trustee’s Sale, unless otherwise required by applicable law.

(C)                                At
any Trustee’s Sale, Trustee shall sell to the highest bidder at public auction
for cash in lawful money of the United States, payable at the time of sale
unless otherwise required by applicable law. Trustee shall execute and deliver
to the purchaser(s) a deed or deeds conveying the property being sold without
any covenant or warranty whatsoever, express or implied. The recitals in any
such deed of any matters or facts, including any facts bearing upon the
regularity or validity of any Trustee’s Sale, shall be conclusive proof of
their truthfulness, absent manifest error. Absent manifest error, any such deed
shall be (1) conclusive against all persons as to the facts recited in it; and
(2) conclusive evidence in favor of purchasers and encumbrancers for value and
without actual notice, that all requirements of this Deed of Trust and all
requirements of law were met relating to the exercise of the power of sale and
the Trustee’s Sale of the Property conveyed by such deed. Knowledge of the
Trustee shall not be imputed to the Beneficiary.

(h)                                Attorney-in-Fact. Grantor hereby irrevocably constitutes and
appoints Beneficiary as Grantor’s attorney-in-fact, with full power of
substitution, to perform such acts and execute such documents as Beneficiary in
its sole and absolute discretion may consider to be appropriate (1) to effect

 27
 

the purpose of this Deed of Trust; and (2) in connection with taking the
measures described in this Section, including endorsement of Grantor’s name on
any instruments. This appointment granted in this Section shall be deemed to be
a power coupled with an interest, and is therefore irrevocable.

(i)                                     Single
or Multiple Foreclosure Sales.
Unless prohibited by applicable law, Beneficiary may elect to dispose of the
Property, or any portion thereof, including but not limited to lots, parcels,
and/or items through a single consolidated sale or disposition to be held or
made under the power of sale granted above, or in connection with judicial
proceedings, or by virtue of a judgment and decree of foreclosure and sale; or
through two or more such sales or dispositions; or in any other manner
Beneficiary may deem to be in its best interests (any such sale or disposition,
a “Foreclosure Sale;” any two or more, “Foreclosure Sales”). If the Property
consists of more than one lot, parcel or item of property, Beneficiary may
designate the order in which the lots, parcels and/or items shall be sold or
disposed of or offered for sale or disposition. If Beneficiary chooses to have
more than one Foreclosure Sale, Beneficiary at its option may cause the
Foreclosure Sales to be held simultaneously or successively, on the same day,
or on such different days and at such different times and in such order as
Beneficiary may deem to be in its best interests. No Foreclosure Sale shall
terminate or affect the lien of this Deed of Trust on any part of the Property
which has not been sold, until all of the Secured Obligations have been paid
and performed in full.

(j)                                     Expenses
During Redemption Period. If this Deed of Trust is foreclosed as a
mortgage and the Property sold at a foreclosure sale, the purchaser may during
any redemption period allowed, make such repairs or alterations on the Property
as may be reasonably necessary for the proper operation, care, preservation,
protection and insuring thereof. Any sums so paid together with interest
thereon from the time of such expenditure at the lesser of the Default Rate
under the Note or the maximum rate permitted by law shall be added to and
become a part of the amount required to be paid for redemption from such sale.

(k)                                  Foreclosure
Subject to Tenancies. Beneficiary shall have the right at its
option to foreclose this Deed of Trust subject to the rights of any tenant or
tenants of the Property.

6.4                               Personal Property. It shall not be necessary that Beneficiary
take possession of all or any part of the Property that is personal property or
fixture property prior to the time that any sale pursuant to the provisions of
this Section is conducted, and it shall not be necessary that such Property or
any part thereof be present at the location of such sale. With respect to
application of proceeds from disposition of such Property, the costs and
expenses incident to disposition shall include the reasonable expenses of
retaking, holding, preparing for sale or lease, selling, leasing and the like
and the reasonable attorneys’ fees and legal expenses (including, without
limitation, the allocated costs for in-house counsel to the extent not
prohibited by applicable law) incurred by Beneficiary. Any and all statements
of fact or other recitals made in any bill of sale or assignment or other instrument
evidencing any foreclosure sale hereunder as to nonpayment of the Secured
Obligations or as to the occurrence of any default or Event of Default, or as
to Beneficiary having declared all of such indebtedness to be due and payable,
or as to notice of time, place, and terms of sale, and of the properties to be
sold having been duly given, or as to any other act or thing having been duly
done by Beneficiary, shall be taken as prima facie evidence of the truth of the
facts so stated and recited (absent manifest error). Beneficiary may appoint or
delegate any one or more persons as agent to perform any act or acts necessary
or incident to any sale held by Beneficiary, including the sending of notices
and the conduct of the sale, but in the name and on behalf of Beneficiary.
Beneficiary may comply with any applicable state or federal law or regulatory
requirements in connection with a disposition of the Property or any part
thereof, and such compliance will not be considered to affect adversely the
commercial reasonableness of any sale of such Property. Beneficiary may sell
all or any portion of the Property without giving any warranties as to such
Property, and may specifically disclaim any warranties of title,
merchantability, fitness for a specific purpose, or the like, and this
procedure will not be considered to affect adversely the commercial
reasonableness of any sale of such Property. Grantor acknowledges that a
private sale of all or any part of the Property may result in

 28
 

less proceeds than a public sale, and Grantor acknowledges that the
Property may be sold at a loss to Grantor, and that, in such event, Beneficiary
shall have no liability or responsibility to Grantor for such loss. In addition
to the rights granted elsewhere in this Deed of Trust, after the occurrence of
any default or Event of Default, Beneficiary may at any time notify the account
debtors or obligors of any accounts, chattel paper (whether tangible or
electronic), general intangibles (including payment intangibles), negotiable
instruments, promissory notes, or other evidences of indebtedness included in
the Property to pay Beneficiary directly.

6.5                                 Credit Bids. At any Trustee’s Sale, Foreclosure Sale,
or any sale of personal property collateral under this Deed of Trust, any
person, including Grantor, Trustee or Beneficiary, may bid for and acquire the
Property being sold or any part of it to the extent not expressly prohibited by
then applicable law. Instead of paying cash for such property, Beneficiary
shall have the benefit of any applicable law permitting credit bids.

6.6                                 Application of Trustee’s Sale or Foreclosure Sale Proceeds. Except as may be otherwise required by
law, Beneficiary and Trustee shall apply the proceeds of any Trustee’s Sale,
Foreclosure Sale, or any other sale of personal property collateral under this
Deed of Trust, in the following manner:

(a)                             First, to pay the portion of the Secured
Obligations attributable to the expenses of sale, including all costs and
expenses of exercising the power of sale and other costs of sale, including,
but not limited to, trustee’s fees and reasonable attorneys’ fees, the costs of
any action, and any other sums for which Grantor is obligated to reimburse
Beneficiary or Trustee under this Deed of Trust; and

(b)                            Second, to pay the portion of the Secured
Obligations attributable to any sums expended or advanced by Beneficiary or
Trustee under the terms of this Deed of Trust which then remain unpaid; and

(c)                             Third, to pay all other Secured Obligations,
to the extent not expressly prohibited by applicable law, in any order and
proportions as Beneficiary in its sole and absolute discretion may choose; and

(d)                            Fourth, to remit the remainder, if any, to the
person or persons entitled to it, or, if permitted or required by applicable
law, to the clerk of the court of the county in which the Trustee’s Sale,
Foreclosure Sale, or any other sale of personal property collateral under this
Deed of Trust, took place.

If the Secured Obligations include more than one loan or line of credit,
by cross-collateralization or otherwise, it is specifically agreed that the
proceeds of any Trustee’s Sale or other foreclosure action shall not be applied
pro-rata unless such application is directed by Beneficiary, but instead shall
be applied to all such Secured Obligations in any order, proportions and manner
as Beneficiary in its sole and absolute discretion may choose.

6.7                                 Application of Rents and Other Sums. Beneficiary shall apply any and all Rents
collected by it in such order as set forth in Section 2.5 above, and any and all other sums, other than
proceeds of a Trustee’s Sale or a judicial foreclosure sale under this Deed of
Trust, which Beneficiary may receive or collect under this Section, in the
following manner:

(a)             First,
to pay the portion of the Secured Obligations attributable to the costs and
expenses of operation of the Property and collection of Rents and other sums
that may be incurred by Trustee, Beneficiary, and/or any receiver, including
but not limited to reasonable attorneys’ fees and any and all expenses of
leasing, operating, maintaining, and managing the Property, and all other costs
and charges incident to the Property; and

 29
 

(b)                                 Second, to pay all other Secured Obligations
in any order and proportions as Beneficiary in its sole and absolute discretion
may choose; and

(c)                                  Third, to remit the remainder, if any, to the
person or persons entitled to it. Beneficiary shall have no liability for any
funds which it does not actually receive.

7.                                     Miscellaneous Provisions.

7.1                                 Additional Provisions. The Loan Documents fully state all of the
terms and conditions of the parties’ agreement regarding the matters mentioned
in or incidental to this Deed of Trust. The Loan Documents also grant further
rights to Beneficiary and certain of them contain further agreements and
affirmative and negative covenants by Grantor which apply to this Deed of Trust
and to the Property.

7.2                                 No Waiver or Cure.

(a)                                  Each waiver by Beneficiary or Trustee shall be
in writing, and no waiver shall be construed as a continuing waiver. No waiver
shall be implied from any delay or failure by Beneficiary or Trustee to take
action on account of any default of Grantor. Consent by Beneficiary or Trustee
to any act or omission by Grantor shall not be construed as a consent to any
other or subsequent act or omission or to waive the requirement for Beneficiary’s
or Trustee’s consent to be obtained in any future or other instance.
Reinstatement after an Event of Default shall not constitute a waiver of any
Event of Default then existing or subsequently occurring, nor impair the right
of Beneficiary to declare other Events of Default, nor otherwise affect this
Deed of Trust or any of the Loan Documents, or any of the rights, obligations,
or remedies of Beneficiary or Trustee under this Deed of Trust or any of the
Loan Documents.

(b)                            If any of the events described below occurs,
that event alone shall not: cure or waive any breach, Event of Default, or
notice of default under this Deed of Trust or invalidate any act performed
pursuant to any such default or notice; or nullify the effect of any notice of
default or sale (unless all Secured Obligations then due have been paid and
performed and all other defaults under the Loan Documents have been cured); or
impair the security of this Deed of Trust; or prejudice Beneficiary, Trustee,
or any receiver in the exercise of any right or remedy afforded any of them
under this Deed of Trust; or be construed as an affirmation by Beneficiary of
any tenancy, lease or option, or a subordination of the lien of this Deed of
Trust.

(i)                                Beneficiary, its agent, or a receiver takes
possession of all or any part of the Property in the manner provided this Deed
of Trust; or

(ii)                             Beneficiary collects and applies Rents and
enforces any Lease provision as permitted under this Deed of Trust, either with
or without taking possession of all or any part of the Property; or

(iii)                          Beneficiary receives and applies to any
Secured Obligation any proceeds of any Property, including any proceeds of
insurance policies, condemnation awards, surety bond proceeds, or other claims,
property or rights assigned to Beneficiary under this Deed of Trust; or

(iv)                         Beneficiary makes a site visit, observes the
Property, and/or conducts tests as permitted under this Deed of Trust; or

 30
 

(v)                            Beneficiary receives any sums under this Deed
of Trust or any proceeds of any collateral held for any of the Secured
Obligations, and applies them to one or more Secured Obligations; or

(vi)                         Beneficiary, Trustee, any agent of either of
them, or any receiver performs any act which it is empowered or authorized to
perform, or invokes any right or remedy provided under this Deed of Trust.

7.3                                 Powers of Beneficiary and
Trustee.

(a)                                  Trustee shall have no obligation to perform
any act which it is empowered to perform under this Deed of Trust unless it is
requested to do so in writing and is reasonably indemnified against loss, cost,
liability and expense.

(b)                                 If either Beneficiary or Trustee performs any
act which it is empowered or authorized to perform under this Deed of Trust, that
act alone shall not release or change the personal liability of any person for
the payment and performance of the Secured Obligations then outstanding or the
lien of this Deed of Trust on all or the remainder of the Property for full
payment and performance of all outstanding Secured Obligations. The liability
of the original Grantor shall not be released or changed if Beneficiary grants
any successor in interest to Grantor any extension of time for payment, or
modification of the terms of payment, of any Secured Obligation. Beneficiary
shall not be required to comply with any demand by the original Grantor that
Beneficiary refuse to grant such an extension or modification to, or commence
proceedings against, any such successor in interest.

(c)                                  Beneficiary may take any of the actions
permitted under this Deed of Trust, including without limitation appointment of
a receiver, regardless of the adequacy of the security for the Secured
Obligations, or whether any or all of the Secured Obligations have been declared
to be immediately due and payable, or whether notice of default and election to
sell has been given under this Deed of Trust.

(d)                                      From time to time, Beneficiary or Trustee may
apply to any court of competent jurisdiction for aid and direction in executing
the trust and enforcing the rights and remedies created under this Deed of
Trust. Beneficiary or Trustee may from time to time obtain orders or decrees
directing, confirming, or approving acts in executing this trust and enforcing
such rights and remedies.

7.4                                 Merger. No merger shall occur as a result of
Beneficiary’s acquiring any other estate in or any other lien on the Property
unless Beneficiary consents to a merger in writing. If both the lessor’s and
lessee’s estate under any lease or any portion thereof which constitutes a part
of the Property, including but not limited to the Ground Lease, shall at any
time become vested in one owner, this Deed of Trust and the lien created hereby
shall not be destroyed or terminated by application of the doctrine of merger
unless Beneficiary so elects as evidenced by recording a written declaration
executed by Beneficiary so stating, and, unless and until Beneficiary so
elects, Beneficiary shall continue to have and enjoy all of the rights and
privileges of Beneficiary as to the separate estates. In addition, upon the
foreclosure of the lien created by this Deed of Trust on the Property pursuant
to the provisions hereof, any leases or subleases then existing and affecting
all or any portion of the Property, including but not limited to the Ground
Lease, shall not be destroyed or terminated by application of the law of merger
or as a matter of law or as a result of such foreclosure unless Beneficiary or
any purchaser at such foreclosure sale shall so elect. No act by or on behalf
of Beneficiary or any such purchaser shall constitute a termination of any
lease or sublease unless Beneficiary or such purchaser shall give written
notice thereof to such tenant or subtenant.

 31
 

7.5                                 Joint and Several Liability. If more than one person has executed this
Deed of Trust as Grantor, each shall be jointly and severally liable for the
faithful performance of all of Grantor’s obligations under this Deed of Trust

7.6                                 Governing Law and Jurisdiction. The creation, perfection, enforcement,
termination and release of the liens and security interests created pursuant to
the Deed of Trust and the conveyance of any right, title, and interest in and
to any of the Property shall be governed by and construed in accordance with
the laws of the State of Washington, which is the state where such Property is
located. Subject to the foregoing, irrespective of the place of execution
and/or delivery, in all respects, including all matters of construction,
validity, and performance, this Deed of Trust shall be governed by, and
construed and enforced in accordance with, the laws of the State of Arizona,
except to the extent that any of such laws may now or hereafter be preempted by
Federal law. Grantor hereby consents to the jurisdiction of any Federal or
State court within (a) the state in which the Property is located, and (b) the
State of Arizona, submits to venue in each such state, and also consents to
service of process by any means authorized by Federal law or the law of each
such state. Without limiting the generality of the foregoing, each Grantor
hereby waives and agrees not to assert by way of motion, defense, or otherwise
in such suit, action, or proceeding, any claim that (i) such Grantor is not
subject to the jurisdiction of the courts of the above-referenced states or the
United States District Court for each such state; or (ii) such suit, action, or
proceeding is brought in an inconvenient forum; or (iii) the venue of such
suit, action, or proceeding is improper. Nothing in this agreement shall
preclude lender from bringing a proceeding in any other jurisdiction nor will
the bringing of a proceeding in any one or more jurisdictions preclude the
bringing of a proceeding in any other jurisdiction. Grantor further agrees and
consents that, in addition to any methods of service of process provided for
under applicable law, all service of process in any proceeding in any Federal
or State court within (a) the state in which the Property is located, or
(2) the State of Arizona, may be made by certified or registered mail, return
receipt requested, directed to each such Grantor at the address indicated
below, and service so made shall be complete upon receipt; except that
if any such Grantor shall refuse to accept delivery, service shall be deemed
complete five (5) days after the same shall have been so mailed. Except to the
extent prohibited by applicable law, Grantor hereby unconditionally waives any
claim to assert that the law of any other jurisdiction governs this Deed of
Trust.

7.7                                 Waiver of Jury Trial. TO THE EXTENT NOT
PROHIBITED BY APPLICABLE LAW, GRANTOR WAIVES TRIAL BY JURY IN ANY ACTION OR
PROCEEDING TO WHICH GRANTOR AND BENEFICIARY MAY BE PARTIES, ARISING OUT OF, IN
CONNECTION WITH OR IN ANY WAY PERTAINING TO, THIS DEED OF TRUST. IT IS AGREED
AND UNDERSTOOD THAT THIS WAIVER CONSTITUTES A WAIVER OF TRIAL BY JURY OF ALL
CLAIMS AGAINST ALL PARTIES TO SUCH ACTIONS OR PROCEEDINGS, INCLUDING CLAIMS
AGAINST PARTIES WHO ARE NOT PARTIES TO THIS DEED OF TRUST. THIS WAIVER IS
KNOWINGLY, WILLINGLY AND VOLUNTARILY MADE BY GRANTOR, AND GRANTOR HEREBY
REPRESENTS THAT NO REPRESENTATIONS OF FACT OR OPINION HAVE BEEN MADE BY ANY
INDIVIDUAL TO INDUCE THIS WAIVER OF TRIAL BY JURY OR TO IN ANY WAY MODIFY OR
NULLIFY ITS EFFECT. GRANTOR FURTHER REPRESENTS AND WARRANTS THAT IT HAS BEEN
REPRESENTED IN SIGNING THIS DEED OF TRUST AND IN THE MAKING OF THIS WAIVER BY
INDEPENDENT LEGAL COUNSEL OR HAS HAD THE OPPORTUNITY TO BE REPRESENTED BY
INDEPENDENT LEGAL COUNSEL SELECTED OF ITS OWN FREE WILL AND THAT IT HAS HAD THE
OPPORTUNITY TO DISCUSS THIS WAIVER WITH COUNSEL.

7.8                                 Successors in Interest. The terms, covenants, and conditions of this
Deed of Trust shall be binding upon and inure to the benefit of the permitted
successors and assigns of the parties; provided, however, that
this Section shall not waive or modify the provisions of Section 6.1 above.

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7.9                                 Statute of Limitations. To the extent not expressly prohibited by law,
Grantor hereby waives the right to plead the statute of limitations as a
defense to any and all obligations secured by this Deed of Trust.

7.10                          Substitution of Trustee. From time to time, Beneficiary may
substitute a successor to any Trustee named in or acting under this Deed of
Trust in any manner now or later to be provided at law, or by a written instrument
executed and acknowledged by Beneficiary and recorded in the office(s) of the
recorder(s) of the county or counties where the Land and the Improvements are
situated. Any such instrument shall be conclusive proof of the proper
substitution of the successor Trustee, who shall automatically upon recordation
of the instrument succeed to all estate, title, rights, powers and duties of
the predecessor Trustee, without conveyance from it.

7.11                          Time of Essence. Time is of the essence of this Deed of
Trust and each and every term thereof.

7.12                          Interpretation.

(a)                                  Whenever the context requires, all words used
in the singular will be construed to have been used in the plural, and vice
versa, and each gender will include any other gender. The captions of the sections
of this Deed of Trust are for convenience only and do not define or limit any
terms or provisions. The word “include(s)” means “include(s), without
limitation,” and the word “including” means “including, but not limited to.”

(b)                                 The word “obligations” is used in its broadest
and most comprehensive sense, and includes all primary, secondary, direct,
indirect, fixed, and contingent obligations. It further includes all principal,
interest, prepayment fees, late charges, loan fees, and any other fees and charges
accruing or assessed at any time, as well as all obligations to perform acts or
satisfy conditions.

(c)                                  No listing of specific instances, items, or
matters in any way limits the scope or generality of any language of this Deed
of Trust. The Exhibits to this Deed of Trust are hereby incorporated by
reference in this Deed of Trust.

(d)                                 No course of prior dealing, usage of trade, or
parol or extrinsic evidence of any nature shall be used to supplement, modify,
or vary any of the terms hereof.

7.13                          Attorneys’ Fees. In any lawsuit or arbitration arising out
of or relating to this Deed of Trust, the prevailing party will be entitled to
recover from each other party such sums as the court or arbitrator adjudges to
be reasonable attorneys’ fees in the action or arbitration, in addition to
costs and expenses otherwise allowed by law. In all other actions or
proceedings, including any matter arising out of or relating to any Insolvency
Proceeding, Grantor agrees to pay all of Beneficiary’s costs and expenses, including
reasonable attorneys’ fees, incurred in enforcing or protecting Beneficiary’s
rights or interests hereunder. From the time(s) incurred until paid in full to
Beneficiary, all such sums shall bear interest at the Default Rate.

7.14                          Waiver of Marshaling. Grantor waives all rights, legal and
equitable, it may now or hereafter have to require marshaling of assets or to
direct the order in which any of the Property will be sold in the event of any
sale under this Deed of Trust. Each successor and assign of Grantor, including
any holder of a lien subordinate to this Deed of Trust, by acceptance of its
interest or lien agrees that it shall be bound by the above waiver, as if it
had given the waiver itself.

7.15                          Severability. If any provision of this Deed of Trust
should be held unenforceable or void, that provision shall be deemed severable
from the remaining provisions and shall in no way affect the

 33
 

validity of this Deed of Trust, except that if such provision relates to
the payment of any monetary sum, then Beneficiary may, at its option, declare
all Secured Obligations immediately due and payable.

7.16                          Notices. Grantor hereby requests that a copy of any
notice of default, notice of sale, and/or other notices prescribed by
applicable law, be mailed to it at the address set forth below. If any Grantor
fails to insert an address, that failure will constitute a designation of
Grantor’s last known address as the address of such notice. That address is
also the mailing address of Grantor as debtor under the UCC. Beneficiary’s
address given below is the address for Beneficiary as secured party under the
UCC.

7.17                          Partial Releases. Grantor may, regardless of consideration,
cause the release of any part of the Property from the lien of this Deed of
Trust without in any manner affecting or impairing the lien or priority of this
Deed of Trust as to the remainder of the Property. Notwithstanding anything
contained herein to the contrary, this Deed of Trust is subject to any partial
release provisions set forth in the Loan Agreement.

7.18                          Reporting Compliance. Grantor agrees to comply with any and all
reporting requirements applicable to Secured Obligations which are set forth in
any law, statute, ordinance, rule, regulation, order, or determination of any
governmental authority, and further agrees to furnish Beneficiary with evidence
of such compliance upon the request of Beneficiary.

7.19                          Release Fee. Unless expressly prohibited by applicable law,
Grantor shall pay to Beneficiary, at the time of each partial or complete release
of the lien of this Deed of Trust, a reasonable release fee, as determined by
Beneficiary.

(Remainder of page intentionally
left blank.

See the following page for signatory and notary jurat.)

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IN WITNESS WHEREOF, Grantor
has executed this Deed of Trust the date first above written.

“GRANTOR”

	
  THE INVENTURE GROUP, INC.,

  	
   

  	
  Address for notices to Grantor:

  
	
  a Delaware
  corporation

  	
   

  	
   

  
	
   

  	
   

  	
  The Inventure Group, Inc.

  
	
   

  	
   

  	
  5050 N. 40th Street, Suite 300

  
	
  By:

  	
  /s/ Eric J.
  Kufel

  	
   

  	
  Phoenix, Arizona 85018

  
	
          Eric
  J. Kufel, its President/CEO

  	
   

  	
  Attention: Steve Weinberger

  
	
   

  	
   

  	
   

  
	
  Address for notice to Trustee:

  	
   

  	
  Address for notices to Beneficiary:

  
	
   

  	
   

  	
   

  
	
  Chicago Title
  Insurance Company

  	
   

  	
  U.S.
  Bank National Association  

  
	
  1616 Cornwall
  Avenue, Suite 115

  	
   

  	
  101
  North First Avenue, Suite 1600

  
	
  Bellingham, WA
  98225

  	
   

  	
  Phoenix,
  AZ 85003-1902

  
	
  Attention:

  	
   

  	
   

  	
   

  	
  Attention:
  Commercial Banking

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  STATE OF

  	
   

  	
  )

  	
   

  	
   

  
	
   

  	
  ) ss.

  	
   

  	
   

  
	
  County of

  	
   

  	
  )

  	
   

  	
   

  
									

 

On this                     day
of June, 2007, before me,                                                                 ,
a Notary Public in and for said State, personally appeared Eric J. Kufel, its President/CEO of THE INVENTURE GROUP, INC., a Delaware corporation, o personally
known or me or o proved
to me on basis of satisfactory
evidence to be the person whose name is subscribed to the within instrument and
acknowledged to me that he/she executed the same in his/her authorized
capacity, and that by his/her signature on the instrument the person, or the
entity upon behalf of which the person acted, executed the instrument.

WITNESS my hand and official seal the day and year in
this certificate first above written.

	
   

  	
   

  

 

 35

Exhibit A to DEED OF
TRUST dated for reference purposes as of June 27, 2007, by THE INVENTURE GROUP, INC., a Delaware
corporation, as “Grantor” to CHICAGO TITLE
INSURANCE COMPANY, as “Trustee” for the benefit of U.S. BANK NATIONAL ASSOCIATION, a national
banking association, as “Beneficiary.”

Description of Property

PARCEL A:

The
North half of the West half of the East half of the Northwest quarter (also
known as Government Lot 3) of Section 6, Township 40 North, Range 4 East of
W.M.; Except the North 420 feet of the East 332 feet thereof and except right
of way for Halverstick Road tying along the North line thereof.

Situate in Whatcom County, Washington.

PARCEL B:

The
West three-fourths of Government Lot 2 in Section 6, Township 40 North, Range 4
East of W.M., excepting a strip 16 feet wide along the West side thereof for
road, and except right of way for Halverstick Road No. 257, lying along the
North line thereof. Also, the East half of the Northeast quarter of the
Northwest quarter (also known as Government Lot 3) of Section 6, Township 40
North, Range 4 East of W.M.; (East half of Government Lot 3). Except right of
way for Halverstick Road No. 257, lying along the North line thereof;

Also,
except that portion of the East half of the Northeast quarter of the Northwest
quarter (also known as Government Lot 3) described as follows:

Beginning at the Northwest corner of the East half of the Northeast
quarter of the Northwest quarter (also known as Government Lot 3); thence East
600 feet; thence South 363 feet; thence West 600 feet; thence North 363 feet to
the point of beginning; Less road.

Except also a tract of land within Government Lot 2, also known as the
Northwest quarter of the Northeast quarter of Section 6, Township 40 North,
Range 4 East of W.M., said tract being more particularly described as follows:

Commencing
at the Northwest corner of said Government Lot 2; thence South 88°13’57” East
along the North line of said Government Lot 2 a distance of 313.45 feet to the
true point of beginning; thence South 02°40’29” West along an existing fence
line and its Southerly extension a distance of 642.79 feet; thence South 88°13’57”
East a distance of 681.43 feet to the West line of the East half of said
Government Lot 2; thence North 02°03’24” East along said West line a distance
of 642.72 feet to the North line of said Government Lot 2; thence North 88°13’57”
West along said North line a distance of 674.74 feet to the true point of
beginning;

Except the right-of-way for Halverstick Road No. 257, lying along the
Northerly line thereof.

Situate in Whatcom County, Washington.

PARCEL
C:

Government
Lot 4 (the Northwest quarter of the Northwest quarter) in Section 6, Township
40 North, Range 4 East of W.M., excepting the East 20 acres thereof, and except
right of way for Halverstick Road,

 A - 1
 

lying along the North line thereof.

Situate in Whatcom County, Washington.

PARCEL D:

The
West half of the West half of the Southeast quarter of the Northeast quarter of
Section 1, Township 40 North, Range 3 East of W.M.

Also Government Lots 1 and 2, except right of way for Halverstick Road,
lying along the North line thereof;

Also
the Southwest quarter of the Northeast quarter, except that portion of
Government Lot 2, described as follows:

Beginning
at the Northeast corner of Government Lot 2; thence West 161 feet to the true
point of beginning; thence West 537 feet; thence South 140 feet; thence East
537 feet; thence North 140 feet to the true point of beginning.

Except
the South half of the Southwest quarter of the Northeast quarter;

Except
the Northeast quarter of the Southwest quarter of the Northeast quarter;

Except the Southeast quarter of the Northwest quarter of the Northeast
quarter;

Also,
except that portion of Government Lot 2, described as follows:

The
West 600 feet of the North 363 feet of Government Lot 2:

Together
with the South 200 feet of the South half of the Southwest quarter of the
Northeast quarter;

And also except that portion of Government Lot 2 of Section 1, Township 40 North, Range 3 East of W.M., described as follows:

Beginning
at the Northeast corner of said Government Lot 2; thence West 161 feet to the
point of beginning; thence South 140 feet; thence West 268.5 feet; thence South
33 feet; thence East 304.5 feet; thence North 173 feet; thence West 36 feet to
the true point of beginning.

All situate in Whatcom County, Washington.

PARCEL E:

The
South half of the Southwest quarter of the Northeast quarter, except the South
200 feet. Together with the Northeast quarter of the Southwest quarter of the
Northeast quarter. Also together with the Southeast quarter of the Northwest
quarter of the Northeast quarter.

Also the East half of Government Lot 3 and a tract 50 feet square in the
Northeast corner of the South half of the Northwest quarter, all in Section 1,
Township 40 North, Range 3 East of W.M.

Except that portion of the East half of Government Lot 3, described as
follows:

The North 363 feet of the East half of Government Lot 3, less roads.

 A - 2
 

Situate in Whatcom County, Washington.

PARCEL F:

Beginning
at the Northwest corner of the East half of the Northeast quarter of the
Northwest quarter (also known as Government Lot 3) Section 6, Township 40
North, Range 4 East, W.M.; thence East 600 feet; thence South 363 feet; thence
West 600 feet; thence North 363 feet to the point of beginning.

Except the right-of-way for Halverstick Road, lying along the Northerly
line thereof.

Situate in Whatcom County, Washington.

PARCEL
G:

The
East 20 acres of Government Lot 4, except the West 165 feet of the East 330
feet of the Worth 264 feet thereof, in Section 6, Township 40 North, Range 4
East of W.M.

Except right of way for Halverstick Road, lying along the North line
thereof.

Situate in Whatcom County, Washington.

PARCEL
H:

The
West 16 feet of Government Lot 2 of Section 6, Township 40 North, Range 4 East
of WM, except the right-of-way for Halverstick Road, lying along the North line
thereof.

Situate in Whatcom County, Washington.

PARCEL I:

The
West 600 feet of the North 363 feet of Government Lot 2 of Section 1, Township
40 North, Range 3 East of W.M.;

Except the right-of-way for Halverstick Road, lying along the North line
thereof.

Situate in Whatcom County, Washington.

PARCEL
J:

The
North 363 feet of the East half of Government Lot 3 of Section 1, Township 40
North, Range 3 East of W.M.

Except the right-of-way for Halverstick Road, lying along the North line
thereof.

Situate in Whatcom County, Washington.

PARCEL
K:

The West 165 feet of the East 330 feet of the North 264 feet of the East
20 acres of Government Lot 4, Section 6, Township 40 North, Range 4 East of
W.M., Whatcom County, Washington, except right of way

 A - 3
 

for Halverstick Road, lying along the Northerly line thereof.

Situate in Whatcom County, Washington.

PARCEL
L:

The
South 555 feet of the following described tract:

A
tract of land situated in the Northeast quarter of the Northeast quarter of
Section 3, Township 40 North, Range 3 East of W.M., described as follows:

Commencing at a point 40 feet of the Northwest corner of the Northeast
quarter of the Northeast quarter of said Section 3; running thence East, a
distance of 50 rods; thence South, a distance of 48 rods; thence West, a
distance of 50 rods; thence North, a distance of 48 rods to the point of
beginning. Except right-of-way for Halverstick Road.

Situate in Whatcom County, Washington.

PARCEL M:

The East half of the Northeast quarter of Section 3, Township 40 North,
Range 3 East of W.M.; Except the North 48 rods thereof; Except 40 feet of the
West 50 rods thereof; And also except the South half of the Southeast quarter
of the Northeast quarter thereof; And except right-of-way for Halverstick Road
No. 419 lying along the North line thereof.

Situate in Whatcom County, Washington.

PARCEL N:

The
North 15 acres of the West 20 acres of the South half of the Southeast quarter
of Section 9, Township 40 North, Range 3 East of W.M.; Except right-of-way for
county road over the East 20 feet as conveyed to Whatcom County by deed
recorded August 14, 1908, under Auditors File No. 123163; Except the
right-of-way for East Badger Road lying along the Southerly line thereof.

Situate in Whatcom County, Washington.

PARCEL N-1:

An easement for ingress, egress and utilities as disclosed by that
certain instrument recorded December 29, 1975. under Whatcom County Auditor’s
File No. 1205059.

This easement is for the benefit of Parcel N alone.

Situate in Whatcom County, Washington.

PARCEL
O:

The South half of the Northwest quarter of the Southeast quarter of
Section 9, Township 40 North, Range 3 East of W.M.; Except right-of-way for
county road over the South 40 feet conveyed to Whatcom County by deed recorded
August 14, 1908, under Auditors File No. 123760.

 A - 4
 

Also,
the Southwest quarter of the Southeast quarter, except the West 20 acres
thereof; And the West half of the Southeast quarter of the Southeast quarter,
except the East 3 acres of the Northwest quarter of the Southeast quarter of
the Southeast quarter; And except the North 150 feet of the East 150 feet of
the Southwest quarter of the Southeast quarter of the Southeast quarter; And
except the East 16 feet of the Southwest quarter of the Southeast quarter of
the Southeast quarter; And except right-of-way for East Badger Road No. 408
lying along the South line thereof. All in said Section 9.

Situate
in Whatcom County, Washington.

PARCEL
P:

The
West 10 acres of the following described tract:

The
North half of the Northeast quarter of the Southeast quarter, and the North 30
feet of the South half of the Northeast quarter of the Southeast quarter of
Section 9, Township 40 North, Range 3 East of W.M., also, excepting therefrom
the right-of-way for Haveman Road lying along the Northerly line thereof.

Situate in Whatcom County, Washington.

PARCEL Q:

The
North 150 feet of the East 150 feet of the Southwest quarter of the Southeast
quarter of the Southeast quarter, and the East 16 feet of the Southwest quarter
of the Southeast quarter of the Southeast quarter; Except right-of-way for East
Badger Road No. 408 lying along the South line thereof, in Section 9, Township
40 North, Range 3 East of W.M. Except that portion conveyed to the State of
Washington for highway purposes by deed recorded July 27, 1989, under Auditor’s
File No. 1641973.

Situate in Whatcom County, Washington.

PARCEL R:

The South 203 feet of the Northeast quarter of the Southeast quarter of
the Southeast quarter and the South 203 feet of the East 3 acres of the
Northwest quarter of the Southeast quarter of the Southeast quarter, all in
Section 9, Township 40 North, Range 3 East of W.M., except the East 450 feet
thereof.

Situate in Whatcom County, Washington.

PARCEL S:

The
Northeast quarter of the Southeast quarter of the Southeast quarter and the
East 3 acres of the Northwest quarter of the Southeast quarter of the Southeast
quarter, all in Section 9, Township 40 North, Range 3 East of W.M., excepting
therefrom the South 203 feet of the Northeast quarter of the Southeast quarter
of the Southeast quarter, and the South 203 feet of the East 3 acres of the
Northwest quarter of the Southeast quarter of the Southeast quarter of said
section. Except the East 450 feet thereof, Except the right-of-way for Line
Road tying along the Easterly line thereof.

Situate in Whatcom County, Washington.

 A - 5
 

PARCEL
S-1:

An easement for the perpetual benefit of the present and successive
owners of the above-described property for ingress, egress and utilities over,
under and across the following described property:

The
North 60 feet of the East 450 feet of the following described property:

The
Northeast quarter of the Southeast quarter of the Southeast quarter, and the
East 3 acres of the Northwest quarter of the Southeast quarter of the Southeast
quarter, all in Section 9, Township 40 North, Range 3 East of W.M., excepting
therefrom the South 203 feet of the Northeast quarter of the Southeast quarter
of the Southeast quarter, and the South 203 feet of the East 3 acres of the
Northwest quarter of the Southeast quarter of the Southeast quarter of said
section. Except right-of-way for Line Road lying along the East line thereof.

Situate in Whatcom County, Washington.

PARCEL T:

That portion of the following described tract of land lying West of a
line being a Northerly extension of the West line of the tract of land conveyed
by deed recorded April 12, 1988, under Auditors File No. 1599600, more
particularly described as follows:

The
North half of the Northeast quarter of the Southeast quarter, and the North 30
feet of the South half of the Northeast quarter of the Southeast quarter of
Section 9, Township 40 North, Range 3 East of W.M., excepting therefrom those
parcels of land conveyed to deeds on May 11, 1972, April 29, 1977, February 20,
1980, March 13, 1986, and April 12, 1988, under Auditor’s File Nos. 1114731,
1250007, 1350015, 1531510 and 1599600, respectively. Also excepting thereof the
rights-of-way for Haveman Road lying along the Northerly line thereof, and Line
Road lying along the Easterly line thereof. Also, except the West 10 acres
thereof.

Situate in Whatcom County, Washington.

PARCEL U:

The
Southeast quarter of the Southeast quarter of the Southeast quarter of Section 9,
Township 40 North, Range 3 East of W.M., except right-of-way for East Badger
Road No. 408 lying along the South line thereof, and except right-of-way for
Line Road No. 149 lying along the East line thereof. Also, except those
portions deeded to the State of Washington for highway purposes recorded June
27, 1989 under Auditor’s File Nos. 1641973 and 1641974, respectively.

Situate in Whatcom County, Washington.

PARCEL V:

Beginning at the Southwest corner of Section 10, Township 40 North,
Range 3 East of W.M.; thence East 365 feet; thence North 600 feet; thence West
365 feet to the West section line; thence South 600 feet along the West section
line to the point of beginning. Except the right-of-way for East Badger Road
lying along the Southerly line thereof, and also except the right-of-way for
Line Road lying along the Westerly line thereof. Except that portion deeded to
the State of Washington for road purposes by deed recorded April 18, 1989,
under Whatcom County Auditor’s File No. 1634072.

 A - 6
 

Situate in Whatcom County, Washington.

PARCEL W:

The
Northwest quarter of the Northwest quarter of the Southwest quarter and the
South one-half of the Northwest quarter of the Southwest quarter of Section 10,
Township 40 North, Range 3 East of W.M., excluding that portion of the
Northwest quarter of the Southwest quarter of that section described as
follows:

Beginning
at the Southwest corner of the Northwest quarter of the Southwest quarter;
thence North along the West line, 899 feet, 4 inches East, parallel with the North
section tine, 200.0 feet; thence South, parallel with the West section line,
339.4 feet; thence East, parallel with the North section line, 460.0 feet;
thence North, parallel with the West section line, 100.0 feet; thence East,
parallel with the North section line to the East line of the Northwest quarter
of the Southwest quarter; thence South along the East line of the Northwest
quarter of the Southwest quarter to the Northeast corner of the Northwest
quarter of the Southwest quarter; thence West along the South line of the
Northwest quarter of the Southwest quarter to the point of beginning. Except
the right-of-way of County Road 149 (commonly referred to as Line Road) lying
along the West line thereof, and except the right-of-way of the County Road 649
(commonly referred to as Haveman Road) along the North line thereof. Except the
West 200,0 feet of the North 220.0 feet thereof.

Situate in Whatcom County, Washington.

PARCEL X:

Beginning
365 feet East of the Southwest corner of Section 10, Township 40 North, Range 3
East, the true point of beginning; thence continuing East 600 feet; thence
North 365 feet; thence West 600 feet; thence South 365 feet to the true point
of beginning. Except the right-of-way for East Badger Road lying along the
Southerly line thereof. Except that portion deeded to the State of Washington
for road purposes by deed recorded April 18, 1989, under Whatcom County Auditor’s
File No. I 634072.

Situate in Whatcom County, Washington.

PARCEL Y:

The
Southwest quarter of the Southwest quarter of Section 10, Township 40 North,
Range 3 East of W.M., except the South 571.28 feet of the East 305.00 feet
thereof. Except a tract beginning 365.00 feet East of the Southwest corner of
said Section 10, the true point of beginning; thence continuing East 600.00
feet; thence North 365.00 feet; thence West 600.00 feet; thence South 365.00
feet to the true point of beginning. Also except a tract beginning at the
Southwest corner of said Section 10; thence East 365.00 feet; thence North
600.00 feet; thence West 365.00 feet to the West section line; thence South
600.00 feet along the West section line to the point of beginning. And except
right-of-way for East Badger Road lying along the Southerly line thereof, and
also except the right-of-way for Line Road lying along the Westerly line
thereof.

Situate in Whatcom County, Washington.

PARCEL Z:

The
portion of the Northwest quarter of the Southwest quarter of Section 10,
Township 40 North, Range 3 East of W.M., described as follows:

 A - 7
 

Beginning
at the Southwest corner of the Northwest quarter of the Southwest quarter of
said section; thence North along the West line, 899 feet, 4 inches; thence
East, parallel with the North line of said section, 200.0 feet; thence South,
parallel with the West line of said section 339.4 feet; thence East, parallel
with the North line of said section, 460.0 feet; thence North, parallel with
the West line of said section, 100.0 feet; thence East, parallel with the North
line of said section to the East line of the Northwest quarter of the Southwest
quarter of said section; thence South along the East line of the Northwest
quarter of the Southwest quarter to the Southeast corner of the Northwest
quarter of the Southwest quarter of said section; thence West along the South
line of the Northwest quarter of the Southwest quarter to the true point of
beginning. Except the South 264.0 feet of the West 160.0 feet of the Southwest
quarter of the Northwest quarter of the Southwest quarter of said Section 10;
and except the North 335 feet, 4 inches of the South 599 feet, 4 inches of the
West 130.0 feet of the Southwest quarter of the Northwest quarter of the
Southwest quarter of said Section 10; and except right-of-way for Line Road No.
149 lying along the West line thereof; and except right-of-way for Haveman Road
No. 649 lying along the North line thereof.

Situate in Whatcom County, Washington.

PARCEL AA:

The
Northeast quarter of the Northwest quarter of the Southwest quarter of Section
10, Township 40 North, Range 3 East of W.M., except right-of-way for Haveman
Road (County Road No. 649) lying along the North line thereof.

Situate in Whatcom County, Washington.

PARCEL BB:

The
South 571.28 feet of the East 305.00 feet of the Southwest quarter of the
Southwest quarter of Section 10, Township 40 North, Range 3 East of W.M.,
except right-of-way for East Badger Road lying along the South line thereof,
and except the South 325.00 feet thereof.

Situate in Whatcom County, Washington.

PARCEL CC:

The
West half of the East half of the Southeast quarter of the Southwest quarter of
Section 10, Township 40 North, Range 3 East of W.M., also the West half of the
Southeast quarter of the Southwest quarter of said Section 10; except the South
325 feet of the West 400 feet thereof; also, except a tract beginning 400 feet
East of the Southwest corner of the Southeast quarter of the Southwest quarter
of said Section 10, the true point of beginning; thence North 400 feet; thence
East 625 feet, more or less, to the East line of the West half of the East half
of the Southeast quarter of the Southwest quarter; thence South 400 feet;
thence West 625 feet, more or less, to the point of beginning. All except East
Badger Road lying along the Southerly line thereof.

Situate in Whatcom County, Washington.

PARCEL DD:

Beginning
400 feet East of the Southwest corner of the Southeast quarter of the Southwest
quarter of Section 10, Township 40 North, Range 3 East of W.M., the true point
of beginning; thence North 400 feet; thence East 625 feet, more or less, to the
East line of the West half of the East half of the Southeast

 A - 8
 

quarter
of the Southwest quarter; thence South 400 feet; thence West 625 feet, more or
less, to the point of beginning. Except the right-of-way for East Badger Road
lying along the Southerly line thereof.

Situate in Whatcom County, Washington.

PARCEL EE:

The
Northeast quarter of the Southwest quarter of Section 10, Township 40 North,
Range 3 East of W.M., except the North 5 rods of the East 16 rods of the
Northeast quarter of the Southwest quarter of said Section 10, and except
right-of-way for Haveman Road No. 649 lying along the Northerly line thereof,
and except right-of-way for Northwood Road (County Road No. 185) lying along
the Easterly line thereof.

Situate in Whatcom County, Washington.

PARCEL FF:

The North 5 rods of the East 16 rods of the Northeast quarter of the
Southwest quarter of Section 10, Township 40 North, Range 3 East of W.M., and
except right-of-way for Haveman Road No. 649 lying along the North line
thereof, and except right-of-way for Northwood Road (County Road No. 185) lying
along the Easterly line thereof.

Situate in Whatcom County, Washington.

PARCEL GG:

Government Lot 3, except the South 366 feet of the West 165 feet
thereof, Section 33, Township 41 North, Range 3 East of W.M., except East Boundary
Road lying along the Northerly line thereof, and except right-of-way for Assink
Road lying along the Easterly line thereof.

Also
except the following described tract:

Beginning
at the Northwest corner of said Government Lot 3; thence South 327 feet, more
or less, to the North line of the South 366 feet of said Government Lot 3;
thence East 165 feet; thence South 23 feet; thence East 497 feet; thence North
350 feet, more or less, to the North line of said Government Lot 3; thence West
to the point of beginning.

Together with the Northeast quarter of the Southwest quarter (except the
West 10 rods thereof), in Section 33, except right-of-way for Assink Road.

Situate in Whatcom County, Washington.

PARCEL GG-1:

A
perpetual non-exclusive easement for the existing poles and overhead power
lines now in place (and the right to enter the premises for maintenance, repair
and replacement of the same) under, over, through and across the property
described as follows:

The
West 70 feet of the East 110 feet of a tract of land described as follows:

Beginning at the Northwest corner of Government Lot 3 of Section 33,
Township 41 North, Range 3 East

 A - 9
 

of W.M.; thence South 327 feet, more or less, to the North line of the
South 386 feet of said Government Lot 3; thence East 165 feet; thence South 23
feet; thence East 497 feet; thence North 350 feet, more or less, to the North
line of said Government Lot 3; thence West to the point of beginning.

The easement is for the benefit of Parcel GG above.

Situate in Whatcom County, Washington.

PARCEL
GG-2:

An
easement, 15 feet in width, for the purposes of installing, utilizing and
maintaining a pressurized underground pipeline as disclosed by that certain
instrument recorded January 10, 2003, under Whatcom County Auditor’s File No.2030101660.

The easement is for the benefit of Parcel GG above.

Situate in Whatcom County, Washington.

PARCEL
HH:

Government Lots Sand 6 of Section 31, Township 41 North, Range 4 East of
the Willamette Meridian, except that portion thereof lying within Holmquist
Road and Halverstick Road;

Also,
except that portion of Government Lots 5 and 6, described as follows:

The West 363 feet of Government Lots 5 and 6, except the South 1200 feet
thereof;

And
except that portion lying North of the South line of Judson Lake; less roads;

Also,
except that portion of Government Lot 6, described as follows:

The
West 353 feet of the South 600 feet; less roads;

Also,
except that portion of Government Lot 6, described as follows:

The
West 363 feet of the South 1200 feet of Government Lot 6, except the South 600
feet thereof; less roads;

Situate
in Whatcom County, Washington.

PARCEL
II:

The West 363 feet of Government Lots 5 and 6 of Section 31, Township 41
North, Range 4 East of W.M.;

Except the South 1200 feet thereof;

And except that portion lying North of the South line of Judson Lake:
less roads. Situate in Whatcom County, Washington.

PARCEL
JJ:

The West 363 feet of the South 600 feet of Government Lot 6 of Section
31, Township 41 North, Range 4 East of W,M.; Less roads;

 A - 10
 

Situate in Whatcom County, Washington.

PARCEL KK:

The West 363 feet of the South 1200 feet of Government Lot 6 of Section
31, Township 41 North, Range 4 East of W.M.;

Except the South 600 feet thereof; Less roads;

Situate in Whatcom County, Washington.

Parcel LL:

Government
Lot 2, except the South 49 1/2 feet thereof of Section 4, Township 40 North,
Range 3 East of W.M.;

Except right of way for Assink Road lying along the West line thereof;

Also

Government
Lot 3, Section 4, Township 40 North, Range 3 East of W.M., EXCEPT 30 feet off
the East side deeded to Whatcom County for road; except Assink Road.

Situate in Whatcom County, Washington.

Parcel MM:

The
Northeast quarter of the Northeast quarter of Section 9, Township 40 North,
Range 3 East of W.M., except therefrom the South half of the Southwest quarter
of the Northeast quarter of the Northeast quarter of said Section 9 and
excepting therefrom the South half of the Southeast quarter of the Northeast
quarter of the Northeast quarter of Section 9, Township 40 North, Range 3 East
of W.M., except Pangborn Road.

Situate
in Whatcom County, Washington.

	
  

  	
  Street Address of Property

  	
   

  
	
  

  1270 East Badger Road

  
	
  Lynden, Washington

  

 

 A - 11Exhibit 10.10

EXECUTIVE EMPLOYMENT AGREEMENT

THIS
EXECUTIVE EMPLOYMENT AGREEMENT (the “Agreement”) is made and entered into as of
May 17, 2007 (“Effective Date”), by and between Rader Farms
Acquisition Corp., a Delaware Corporation (the “Company”) a wholly-onwed
subsidiary of The Inventure Group, Inc., a
Delaware corporation, (“Inventure”), and Brad Rader (the “Executive”).

WITNESSETH:

WHEREAS,
Executive is not currently employed with the Company and the Company desires to
attract and retain the services of Executive, and Executive desires to become
employed by the Company, on the terms and conditions of this Agreement.

NOW,
THEREFORE, in consideration of the premises and the mutual covenants and
agreements set forth herein, the Company and Executive, intending to be legally
bound, hereby agree as follows:

1.             Employment.  The Company agrees to employ Executive as Vice
President/General Manager Rader Farms Inc., and Executive accepts such
employment and agrees to perform full-time employment services for the Company,
subject always to direction of the Chief Operating Officer of Inventure or his
designee (the “COO”) for the period and upon the other terms and conditions set
forth in this Agreement.

2.             Term.  The term of employment under this Agreement (the
“Term”) shall be for the period commencing on the Effective Date and ending on
May       , 2010; provided, however, that this
Agreement may be terminated upon written notice by either party as set forth in
Section 5 below, for any reason whatsoever, this being an “at will” employment
agreement.  Sections 5 and 6 of this
Agreement shall govern the amount of any compensation to be paid to Executive
upon termination of this Agreement and his employment.

3.                                       Position
and Duties.

3.1.          Service with the Company.  During the Term of this Agreement, Executive
agrees to perform such executive employment duties as the COO shall reasonably
assign to him from time to time.

3.2.          No Conflicting Duties.  Executive hereby confirms that he is under no
contractual commitments inconsistent with his obligations set forth in this
Agreement, and that during the Term of this Agreement, he will not render or
perform services, or enter into any contract to do so, for any other
corporation, firm, entity or person that are inconsistent with the provisions
of this Agreement or Executive’s fiduciary obligations to the Company.

4.                                       Compensation
and Benefits.

4.1.          Base Salary.  As compensation for all services to be
rendered by Executive under this Agreement, the Company shall pay to Executive
an annual salary of $200,000.00 (the “Base Salary”). The Base Salary shall be
subject to review and change at the discretion of the Inventure Board of
Directors (the “Board”) (or its Compensation Committee), however, the Base
Salary may not be decreased without the written consent of the Executive.  The Company shall pay the Base Salary to
Executive on the Company’s regularly scheduled paydays in accordance with the
Company’s normal payroll procedures and policies.

4.2.          Bonuses.  Executive may be eligible for bonuses as
determined by the Board (or its Compensation Committee) in its discretion. 

4.3.          Stock Options.  Within thirty (30) days after the Effective
Date, Inventure and Executive will enter into a Stock Option Award Agreement
(the “Award Agreement”), in the form attached hereto as Exhibit A,
pursuant to which Inventure shall grant to Executive, under Inventure’s current
Option Plan, options to purchase 100,000 shares of Inventure’s Common Stock, at
an exercise price per share equal to the closing price per share on the day
prior to the date of grant and otherwise on the terms and conditions set forth
in the Award Agreement and the Option Plan. 

4.4.          Participation in Benefit Plans.  Executive shall be included to the extent
eligible thereunder in any and all plans of the Company providing general
benefits for the Company’s executive employees, including, without limitation,
medical, dental, vision, disability, life insurance, 401(k) plan, sick days,
vacation, and holidays.  Executive’s
participation in any such plan or program shall be subject to the provisions,
rules, and regulations applicable thereto. 
In addition, during the Term of this
Agreement, Executive shall be eligible to participate in all non-qualified
deferred compensation and similar compensation, bonus and stock plans offered,
sponsored or established by Company on substantially the same or a more
favorable basis as any other employee of Company.

4.5.          Business Expenses.  In accordance with the Company’s policies
established from time to time, the Company will pay or reimburse Executive for
all reasonable and necessary out-of-pocket expenses incurred by him in the
performance of his duties under this Agreement, subject to the presentment of
appropriate supporting documentation.

4.6.          Automobile Allowance.  The Company shall pay Executive $850.00
per month as an automobile allowance, less any required withholdings for tax
purposes (the “Monthly Car Allowance”). 
Executive shall procure and maintain adequate insurance coverage on the
automobile he uses for Company purposes. 
Executive acknowledges that he may
recognize taxable income in connection with these payments and that these
amounts will be reflected on Executive’s W-2, if required by law.

5.                                       Termination.

5.1.          Disability.  At the Company’s election, Executive’s
employment and this Agreement shall terminate upon Executive’s becoming totally
or permanently disabled for a period of ninety (90) days or more in any twelve
(12) month period.  For purposes of this
Agreement, the term “totally or permanently disabled” or “total or permanent
disability” means Executive’s inability on account of sickness or accident,
whether or not job-related, to engage in regularly or to perform adequately his
assigned duties under this Agreement.  A
reasonable determination by the Company of the existence of a disability shall
be conclusive for all purposes hereunder. 
In making such determination of disability, the Company may utilize such
advice and consultation as the Company deems appropriate, but there is no
requirement of procedure or formality associated with the making of a
determination of disability.

5.2.          Death of Executive.  Executive’s employment and this Agreement
shall terminate immediately upon the death of Executive.

5.3.          Termination for Cause.  The Company may terminate Executive’s
employment and this Agreement at any time for “Cause” (as hereinafter defined)
immediately upon written notice to Executive. 
As used herein, the term “Cause” shall mean that Executive shall have in
the reasonable judgment of the Board (i) committed a criminal act or a single
act of fraud, embezzlement, breach of trust, or an act of gross misconduct, or
(ii) violated any material written Company policy or rules of the Company,
unless cured by Executive within 30 days following written notice thereof to
Executive, or (iii) Executive’s willful and material violation of, or
noncompliance with, any securities laws or stock exchange listing rules,
including, without limitation, the Sarbanes-Oxley Act of 2002, provided that
such violation or noncompliance resulted in material economic harm to the
Company, or (iv) refused to follow the reasonable written directions given by
the COO or his designee or breached any covenant or obligation under this
Agreement or other agreement with the Company, unless cured by Executive within
30 days following written notice thereof to Executive.

5.4.          Resignation.  Executive’s employment and this Agreement
shall terminate on the earlier of the date that is one (1) month following the
written submission of Executive’s resignation to the Company or the date such
resignation is accepted by the Company.

5.5.          Termination Without Cause.  The Company may terminate Executive’s
employment and this Agreement without cause upon written notice to
Executive.  Termination “without cause”
shall mean termination of employment on any basis (including no reason or no
cause) other than termination of Executive’s employment hereunder pursuant to
Sections 5.1, 5.2, 5.3, or 5.4.

 2
 

5.6.          Surrender
of Records and Property.  Upon termination
of his employment with the Company, Executive shall deliver promptly to the
Company all credit cards, computer equipment, cellular telephone, records,
manuals, books, blank forms, documents, letters, memoranda, notes, notebooks,
reports, data, tables, calculations or copies thereof, that are the property of
the Company and that relate in any way to the business, strategies, products,
practices, processes, policies or techniques of the Company, and all other
property, trade secrets and confidential information of the Company, including,
but not limited to, all documents that in whole or in part contain any trade
secrets or confidential information of the Company that in any of these cases
are in his possession or under his control, and Executive shall also remove all
such information from any personal computers and other electronic devices that
he owns or controls.

6.             Compensation
Upon the Termination of Executive’s Employment.

6.1.          In the event that Executive’s
employment and this Agreement are terminated pursuant to Section 5.1
(Disability), 5.3 (Cause), or 5.4 (Resignation), then Executive shall be
entitled to receive Executive’s then current Base Salary through the date his
employment is terminated, but no other compensation of any kind or amount.

6.2.          In the event Executive’s employment
and this Agreement are terminated pursuant to Section 5.2 (Death),
Executive’s beneficiary or a beneficiary designated by Executive in writing to
the Company, or in the absence of such beneficiary, Executive’s estate, shall
be entitled to receive Executive’s then current Base Salary through the end of
the month in which his death occurs, but no other compensation of any kind or
amount.

6.3.          Unless Section 7 applies, in the event
Executive’s employment and this Agreement are terminated by the Company
pursuant to Section 5.5 (Without Cause), the Company shall pay to
Executive, as a severance allowance, the following amounts, but no other
compensation or benefits of any kind: (a) if Executive has been employed by the
Company for less than one year after the Effective Date, his then current
monthly Base Salary and Monthly Car Allowance for the four (4) month period
following the date of termination, paid on the Company’s regular paydays
throughout that four-month period, (b) if Executive has been employed by the
Company for more than one year after the Effective Date, his then current
monthly Base Salary and Monthly Car Allowance for the six (6) month period
following the date of termination, paid on the Company’s regular paydays
throughout that six-month period and in either event (c) within thirty (30)
days after termination of Executive’s employment, any amounts payable under any
bonus plans for which Executive is eligible to participate as of the date of
the termination of his employment, after pro rating all targets, quotas, and
bonus payments as of the termination date, regardless when such bonus may be
due under the bonus plan.  Executive
shall be entitled to receive these benefits and payments only if he complies
with his continuing obligations to the Company as set forth in this Agreement.

7.             Change in Control.  In the event of both a Change in Control (as
defined below) and the occurrence of Good Reason (as defined below), the
Company shall, within thirty (30) days after occurrence of the last of these
conditions, pay Executive a lump sum amount equal to the sum of:  (a) 50% of Executive’s then current annual
Base Salary for twelve (12) months; (b) Executive’s Monthly Car Allowance for
twelve (12) months; and (c) any amounts payable under any bonus plans for which
Executive is eligible to participate as of the date of the Change of Control,
after pro rating all targets, quotas, and bonus payments as of the date of the
Change in Control, regardless when such bonus may be due under the bonus plan.  Executive shall be
entitled to receive these benefits and payments only if he complies with his
continuing obligations to the Company as set forth in this Agreement.

 3
 

7.1.          Definition of Change in Control.  As used herein, a “Change in Control” means
both: (i) a change in the composition of the Board, as a result of which less
than a majority of the incumbent directors are directors who either
(x) had been directors of Inventure on the date 24 months prior to the
date of the event that may constitute a Change in Control (the “original
directors”) or (y) were elected, or nominated for election, to the Board
with the affirmative votes of at least a majority of the aggregate of the
original directors who were still in office at the time of the election or
nomination and the directors whose election or nomination was previously so
approved; and (ii) one of the following events has occurred:  (a) the consummation of a merger or
consolidation of Inventure with or into another entity or any other corporate
reorganization, if more than 30% of the combined voting power of the continuing
or surviving entity’s securities outstanding immediately after such merger,
consolidation, or other reorganization is owned by persons who were not
stockholders of Inventure immediately prior to such merger, consolidation, or
other reorganization; or (b) the sale, transfer, or other disposition of all or
substantially all of Inventure’s assets. 
A transaction shall not constitute a Change of Control if its sole
purpose is to change the state of Inventure’s incorporation or to create a
holding company that will be owned in substantially the same proportions by the
persons who held Inventure’s securities immediately before such transaction.

7.2.          Definition of Good Reason.  As used herein, “Good Reason” means any of
the following:  (i) termination by the
Company of Executive’s employment and this Agreement without cause (as that
term is defined in Section 5.5) within three (3) months before, or within
twelve (12) months after, a Change in Control; (ii) a material reduction in
Executive’s title, status, authority, or responsibility at the Company within
twelve (12) months after a Change in Control; (iii) within twelve (12) months
after a Change in Control, there is a material reduction in the benefits that
were in effect for the Executive immediately prior to the Change in Control,
and comparable reductions have not been made in the benefits of the other
members of senior management of the Company; (iv) except with Executive’s prior
written consent, relocation of Executive’s principal place of employment to a
location outside Whatcom County, Washington within twelve (12) months following
a Change in Control; or (v) any material breach by the Company of its material
obligations under this Agreement within twelve (12) months following a Change
in Control.

8.             Release.  As a condition precedent to the Company’s
obligation to provide Executive with the amounts set forth in Section 6.3 or
Section 7, Executive must first execute and deliver to the Company a legal
release, in form and substance acceptable to the Company, in which Executive
releases Inventure, the Company and their affiliates, directors, officers,
employees, agents from any and all claims, including claims relating to the
Executive’s employment with the Company, the termination of Executive’s
employment, if applicable, and any facts constituting Good Reason.

9.             Ventures.  If, during the Term of this Agreement,
Executive is engaged in or associated with the planning or implementing of any
project, program, or venture involving the Company and a third party or
parties, all rights in the project, program, or venture shall belong to the
Company and shall constitute a corporate opportunity belonging exclusively to
the Company. Except as approved in writing by the Board, Executive shall not be
entitled to any interest in such project, program, or venture or to any
commission, finder’s fee, or other compensation in connection therewith other
than the Base Salary to be paid to Executive as provided in this Agreement.

10.                                 Restrictions.

10.1.        Definitions.  For purposes of this Agreement, the following
terms shall have the following meanings:

 4
 

10.1.1.     “Trade Secrets” means information
that is not generally known about the Company or its business, including
without limitation about its products, recipes, projects, designs,
developmental or experimental work, computer programs, data bases, know-how,
processes, customers, suppliers, business plans, marketing plans and
strategies, financial or personnel information, and information obtained from
third parties under confidentiality agreements. 
“Trade Secrets” also means formulas, patterns, compilations, programs,
devices, methods, techniques, or processes that derive independent economic
value, actual or potential, from not being generally known to the public or to
other persons who can obtain economic value from its disclosure or use, and is
the subject of efforts that are reasonable under the circumstances to maintain
its secrecy.  In particular, the parties
agree and acknowledge that the following list, which is not exhaustive and is
to be broadly construed, enumerates some of the Company’s Trade Secrets, the
disclosure of which would be wrongful and would cause irreparable injury to the
Company: (i) recipes for the Company’s
specialty potato chips, other salted snack foods, and other food products; (ii)
manufacturing processes for the foregoing products; (iii) pricing information;
(iv) product development, marketing, sales,
customer, and supplier information related to any Company product or service
available commercially or in any stage of development during Executive’s
employment with the Company; and (v) Company marketing and business
strategies, ideas, and concepts. 
Executive acknowledges that the Company’s Trade Secrets were and are
designed and developed by the Company at great expense and over lengthy periods
of time, are secret, confidential, and unique, and constitute the exclusive
property of the Company.

10.1.2.     “Restricted
Field” means the growing, manufacturing, marketing and selling of
individual packages of quick frozen berries and any similar businesses
conducted by the Company during the Term. 
The Company is in the business of growing, manufacturing, and selling
these products in the Business Territory.

10.1.3.     “Non-Competition
Period” means a period of 36 months after the termination of Executive’s
employment with the Company.

10.1.4.     “Business
Territory” means the entire United States.

10.1.5.     “Non-Solicitation
Period” means a period of thirty-six (36) months after the termination of Executive’s employment with the
Company.

10.2.        Non-Disclosure Obligations.  Executive shall not at any time, during or
after the Term of this Agreement, without the express written consent of an
officer of the Company, publish, disclose, or divulge to any person, firm or
corporation, or use directly or indirectly for the Executive’s own benefit or
for the benefit of any person, firm, corporation or entity other than the
Company, any Trade Secrets of the Company.

10.3.        Non-Competition Obligations.  Executive acknowledges the substantial amount
of time, money, and effort that the Company has spent and will spend in
developing its products and other strategically important information (including
but not limited to Trade Secrets), and agrees that during the Non-Competition
Period, Executive will not, alone or with others, directly or indirectly, as an
employee, agent, consultant, advisor, owner, manager, lender, officer,
director, employee, partner, stockholder, or otherwise, engage in any
Restricted Field activities in the Business Territory, nor have any such
relationship with any person or entity that engages in Restricted Field
activities in the Business Territory; provided, however, that nothing in this
Agreement will prohibit Executive from owning a passive investment of less than
one percent of the outstanding equity securities of any company listed on any
national securities exchange or traded actively in any national
over-the-counter market so long as Executive has no other relationship with
such company in violation of this Agreement. 
The Non-Competition Period set forth in this Section 10.3 shall be
tolled during any period in which the Executive is in breach of the restriction
set forth herein.

 5
 

10.4.        Agreement Not to Solicit Customers.  Executive agrees that during Executive’s
employment with the Company hereunder and during the Non-Solicitation Period,
Executive will not, either directly or indirectly, on Executive’s own behalf or
in the service or on behalf of others, solicit, divert, or appropriate, or
attempt to solicit, divert, or appropriate, to any business that engages in
Restricted Field activities in the Business Territory (i) any person or entity
whose account with the Company was sold or serviced by or under the supervision
of Executive during the thirty-six (36) months preceding the termination of
such employment, or (ii) any person or entity whose account with the Company
has been directly solicited at least twice by the Company within the year
preceding the termination of employment (the “Customers”).  The Non-Solicitation Period set forth in this
Section 10.4 shall be tolled during any period in which the Executive is in
breach of the restriction set forth herein.

10.5.        Agreement Not to Solicit Employees.  Executive agrees that during Executive’s
employment with the Company hereunder and during the Non-Solicitation Period,
Executive will not, either directly or indirectly, on Executive’s own behalf or
in the service or on the behalf of others solicit, divert, or hire away, or
attempt to solicit, divert, or hire away any person then employed by the
Company, nor encourage anyone to leave the Company’s employ.  The Non-Solicitation Period set forth in this
Section 10.5 shall be tolled during any period in which the Executive is in
breach of the restriction set forth herein.

10.6.        Non-Disparagement.  Executive agrees that during Executive’s
employment with the Company hereunder and thereafter, he will not, either
directly or indirectly, disparage, defame, or besmirch the reputation,
character, or image of the Company or its products, services, employees,
directors, or officers.

10.7.        Reasonableness.  Executive and the Company agree that the
covenants set forth in this Agreement are appropriate and reasonable when
considered in light of the nature and extent of the Company’s business.  Executive further acknowledges and agrees
that (i) the Company has a legitimate interest in protecting the Company’s
business activities and its current, pending, and potential Trade Secrets; (ii)
the covenants set forth herein are not oppressive to Executive and contain
reasonable limitations as to time, scope, geographical area, and activity;
(iii) the covenants do not harm in any manner whatsoever the public interest;
(iv) the covenants set forth herein do not completely restrain Executive from
working in Executive’s chosen profession, and Executive can earn a livelihood
in Executive’s profession without violating any of the covenants set forth herein;
(v) Executive has received and will receive substantial consideration for
agreeing to such covenants, including without limitation the consideration to
be received by Executive under this Agreement; and (vi) the Company has entered
into that certain Asset Purchase Agreement between the Company, Rader Farms
Inc. and all the shareholders of Rader Farms Inc. in part in reliance on
Executive’s agreement to be bound by this Agreement in connection therewith and
if Executive were to engage in prohibited activities in the Restricted Field
within the Business Territory, it would harm the Company.

10.8.        Indirect Benefit under Purchase
Agreement.  Executive is the son of
Lyle and Sue Rader, the shareholders of Rader Farms Inc., a Washington Company
(“Rader Farms”), which has sold substantially all of its assets to the Company
pursuant to that certain Asset Purchase Agreement of even date herewith, and as
such Executive will receive substantial indirect benefits from the Company’s purchase
of substantially all of the assets of Rader Farms, which Executive agrees shall
be deemed additional consideration from the Company for Executive’s restrictive
covenants set forth in this Section 10.

11.           Other Agreements.  Executive reaffirms Executive’s obligations
set forth in the Employee Proprietary Rights Agreement attached hereto as Exhibit
B.  Executive further acknowledges
and agrees that he will comply with all other Company policies and procedures,
including, without limitation, the Company’s Stock Trading policy.

12.           Assignment.  This Agreement shall not be assignable, in
whole or in part, by either party without the written consent of the other
party, except that the Company may, without the consent of Executive, assign
its rights and obligations under this Agreement to any corporation, firm or
other business entity (i) with or into which the Company may merge or
consolidate, (ii) to which the Company may sell or transfer all or
substantially all of its assets or (iii) of which 30% or more of the equity
investment and of the voting control is owned, directly or indirectly, by, or
is under common ownership with, the Company. 
Upon such assignment by the Company, the Company shall attempt to obtain
the assignees’ written agreement enforceable by Executive to assume and perform,
from and after the date of such assignment, the terms, conditions, and
provisions imposed by this Agreement upon 

 6
 

the Company.  After any such assignment by the Company and
such written agreement by the assignee, the Company shall be discharged from all
further liability hereunder and such assignee shall thereafter be deemed to be
the Company for the purposes of all provisions of this Agreement including this
Section 12.

13.                                 Other
Provisions.

13.1.        Governing Law.  This Agreement is made under and shall be
governed by and construed in accordance with the laws of the State of Washington
without reference to conflicts of law provisions thereof.

13.2.        Injunctive Relief.  Executive agrees that it would be difficult
to compensate the Company fully for damages for any violation of the provisions
of this Agreement.  Accordingly,
Executive specifically agrees that the Company shall be entitled to temporary
and permanent injunctive relief to enforce the provisions of this Agreement.  This provision with respect to injunctive
relief shall not, however, diminish the right of the Company to claim and
recover damages in addition to injunctive relief.

13.3.        Prior Agreements.  This Agreement contains the entire agreement
of the parties relating to the subject matter hereof and supersedes all prior
agreements and understandings with respect to such subject matter, and the
parties hereto have made no agreements, representations, or warranties relating
to the subject matter of this Agreement which are not set forth herein.

13.4.        Withholding Taxes and Right of Offset.  The Company may withhold from all payments
and benefits under this Agreement all federal, state, city, or other taxes as
shall be required pursuant to any law or governmental regulation or ruling.  Executive agrees that the Company may offset
any payments owed to Executive pursuant to this Agreement or otherwise against
any amounts owed by the Executive to the Company.

13.5.        Amendments.  No amendment or modification of this
Agreement shall be deemed effective unless made in writing signed by Executive
and the Company.

13.6.        No Waiver.  No term or condition of this Agreement shall
be deemed to have been waived nor shall there be any estoppel to enforce any
provisions of this Agreement, except by a statement in writing signed by the
party against whom enforcement of the waiver or estoppel is sought.  Any written waiver shall not be deemed a
continuing waiver unless specifically stated, shall operate only as to the
specific term or condition waived, and shall not constitute a waiver of such
term or condition for the future or as to any act other than that specifically
waived.

13.7.        Severability.  To the extent any provision of this Agreement
shall be invalid or unenforceable, it shall be considered deleted from this Agreement
and the remainder of such provision and of this Agreement shall be unaffected
and shall continue in full force and effect.

13.8.        Survivability.  Sections 6, 7, 8, 9, 10, 11, 12, and 13 of
this Agreement shall survive the termination of this Agreement and the
termination of Executive’s employment with the Company.

IN WITNESS
WHEREOF, the parties have executed this Agreement as of the day and year set
forth above.

	
  

  	
  “Company”:

  	
  Rader Farms Acquisition Corp.

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  /s/ Eric J. Kufel

  	
   

  
	
   

  	
   

  	
  Eric J. Kufel, President

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  “Executive”:

  	
  /s/ Brad Rader

  	
   

  
	
   

  	
   

  	
  Brad Rader

  	
   

  

 

 7
 

Exhibit A

OFFICER

INCENTIVE STOCK OPTION

AGREEMENT

THE
INVENTURE GROUP, INC., a Delaware corporation (the “Company”),
hereby grants effective May     , 2007 to Brad Rader (the “Optionee”) an option to purchase a
total of 100,000 shares of common stock, par value $.01 per share, of the
Company (the “Common Stock”) at a price
of  $             
per share.

1.             Nature of the Option.  This option is intended to be an “Incentive
Stock Option” as defined in and subject to the limitations of Section 422A of
the Internal Revenue Code of 1986 and has been granted under the Company’s 2005
Equity Incentive Plan, as amended (the “Plan”).

2.             Exercise of Option.

a)  This option may be exercised by delivery of
written notice to the Company stating the number of shares of Common Stock with
respect to which the option is being exercised, making such representations,
warranties and agreements with respect to such shares of Common Stock as may be
required by the Company, and accompanied by full payment of the purchase price
therefor.  Payment may be made in cash,
by check, by delivery of shares of Common Stock or in such other form or
combination of forms as shall be acceptable to the Company, provided that any loan or guaranty by the Company of the
purchase price may only be made if the Company’s Board of Directors determines
that such loan or guaranty is reasonably expected to benefit the Company.  This option shall not be exercisable as to
fewer than 500 shares of Common Stock, or the remaining shares of Common Stock
covered by this option if fewer than 500.

b)  This option shall vest and become exercisable
on and after the following dates:

May     ,
2008                         33,333  shares

May     ,
2009                         33,333  shares

May
    , 2010                         33,334  shares

Notwithstanding
the foregoing, all of the options granted to Optionee hereunder shall
immediately, and without further action of any party, vest upon a “change of
control” of Company.  When used herein,
the term “change of control” shall mean the change of hands, within any
consecutive one-month period, of more than thirty percent (30%) of the voting
stock of the Company, with the concomitant result that the new owner or owners
of such stock exercise their voting rights to “control” the identities of the
members of the Board, as the term “control” is defined, or to which reference
is made, in the regulations promulgated under the Securities Exchange Act of
1934.

3.             Termination.  This
option shall expire five (5) years from the effective date above, (the “Expiration Date”) unless earlier
terminated in accordance with the provisions hereof.

4.             Early Termination.

a)             In the event that the Optionee’s
employment is terminated for cause, the option granted hereunder shall lapse to
the extent unexercised immediately upon the giving of the notice of such
termination.  Fur purposes of this
paragraph, “for cause” shall mean incompetence, gross negligence,
insubordination, conviction of a felony or willful misconduct by the Optionee
as determined in good faith by the Board of Directors of the Company, a
Committee of the Board of Directors with the authority to make such a
determination or the Board of Directors of the subsidiary of the Company at
which Optionee is employed.

b)            In the event of the death of the
Optionee, the Optionee’s estate shall have the privilege of exercising the
option granted hereunder not theretofore exercised by the Optionee, to the
extent that the Optionee was entitled to exercise such rights on the date of
the Optionee’s death; but in such event, the period of time within which the
purchase or exercise may be made shall be the earlier of (i) 180 days next
succeeding the death of the Optionee or (ii) the Expiration Date.

c)             In
the event of termination of employment with the Company or its subsidiaries by
the Optionee for any reason other than for cause or death, the Optionee shall
have the right to exercise the option 

 8
 

granted
hereunder, to the extent that the Optionee was entitled to exercise such option
on the date of such termination, during the period ending 60 days following
such termination date.

5.             Adjustment Provisions.

a)             If the Company shall at any time
change the number of issued shares of Common Stock without new consideration of
the Company (such as by stock dividend, stock split, recapitalization,
reorganization, exchange of shares, liquidation, combination or other change in
corporate structure affecting the Common Stock), the number of shares of Common
Stock covered by this option and the purchase price shall be adjusted so that
the net value of this option shall not be changed.

b)            In the case of any sale of assets,
merger, consolidation, combination or other corporate reorganization or
restructuring of the Company with or into another corporation which results in
the outstanding common stock being converted into or exchanged for different
securities, cash or other property, or any combination thereof (an “Acquisition”), the Optionee shall
have the right thereafter and during the term of this option, to receive upon
exercise thereof in whole or in part the Acquisition Consideration (as defined
below) receivable upon the Acquisition by a holder of the number of shares of
Common Stock which might have been obtained upon exercise of this option or portion
hereof, as the case may be, immediately prior to the Acquisition.  The term “Acquisition Consideration” shall
mean the kind and amount of securities, cash or other property or any
combination thereof receivable in respect of one share of Common Stock upon
consummation of an Acquisition.

6.             Assignment or Transfer.  This option may not be assigned or
transferred and shall be exercisable only by the Optionee during the Optionee’s
lifetime.

7.             Agreement to Serve.  The Optionee agrees that, during the course
of any employment by the Company, he/she will devote such time, energy and
skill to the service of the Company as may reasonably be necessary to carry out
his/her duties as an employee.  The
Optionee further agrees that during the course of his/her service as an
employee of the Company, he/she will devote such time, energy and skill to the
service of the Company as may reasonably be necessary to carry out his/her
obligations as an employee. 
Notwithstanding the foregoing, this option is not a contract of
employment and the terms of any employment of the Optionee shall not be
enlarged or otherwise affected hereby except to the extent specifically so
provided herein.

8.             Reserved Shares.  The Company has duly reserved for issuance a
number of authorized but unissued shares adequate to fulfill its obligations
under this Agreement.  During the term of
this Agreement, the Company shall take such action as may be necessary to
maintain at all times an adequate number of shares reserved for issuance or
treasury shares to fulfill its obligations hereunder.

9.             Legends.  The certificates evidencing shares of Common
Stock purchased pursuant to this option shall bear any legends deemed necessary
by the Company.

10.           Compliance with Law.  This option shall not be exercised, and no
shares of Common Stock shall be issued in respect hereof, unless in compliance
with federal and applicable state securities laws.  The Optionee hereby agrees to execute such
documents as the Company may reasonably request to assure the availability to
the Company of an exemption from the registration requirements of the
Securities Act or any state securities or blue sky laws.

11.           Representations of the
Optionee.  As a condition to
the exercise of this option, the Optionee will deliver to the Company such
signed representations, warranties and agreements as may be necessary, in the
opinion of counsel satisfactory to the Company, for compliance with applicable
federal and state securities laws.

12.           Resale.  The Optionee’s ability to transfer shares of
Common Stock purchased pursuant to this option or securities acquired in lieu
thereof or in exchange therefor may be restricted under federal or state
securities laws.  The Optionee shall not
resell or offer for resale such shares of Common Stock or securities unless
they have been registered or qualified for resale under all applicable federal
and state securities laws or an exemption from such registration or
qualification is available in the opinion of counsel satisfactory to the
Company.

 9
 

13.           Notice.  All notices or other communications desired
to be given hereunder shall be in writing and shall be deemed to have been duly
given upon receipt, if personally delivered, or on the third business day
following mailing by United States first class mail, postage prepaid, and
addressed as follows:

If to the Company:

The Inventure Group, Inc.

5050 N 40th Street, Suite
300

Phoenix, AZ 85018

Attention:
Treasurer

If to the
Optionee:

	
  Name

  	
  Brad Rader

  	
   

  
	
  Street

  	
   

  	
   

  
	
  City/State/Zip

  	
   

  	
   

  

 

or to such other
address as either party shall give to the other in the manner set forth above.

14.           Withholding.  If the exercise of any rights granted in this
Agreement or the disposition of shares following exercise of such rights
results in the Optionee’s realization of income which for federal, state or
local income tax purposes is, in the opinion of the Company, subject to
withholding of tax, the Optionee will pay to the Company an amount equal to
such withholding tax (or the Company may withhold such amount from any
compensation due the Optionee) prior to delivery of certificates evidencing the
shares of Common Stock purchased.

15.           Governing Law.  This Agreement shall be governed by and
construed in accordance with the laws of the State of Delaware (regardless of
the law that might otherwise govern under applicable Delaware principles of
conflicts of laws).

16.           Miscellaneous.  References herein to a date on or as of which
an expiration, termination or lapse shall occur shall be deemed to refer to
11:59 P.M., Phoenix, Arizona time, on such date.

IN
WITNESS WHEREOF, the Company and the Optionee have executed this Incentive
Stock Option Agreement effective on the first date mentioned above.

	
  THE COMPANY:

  	
  THE OPTIONEE:

  
	
   

  	
   

  
	
  THE INVENTURE
  GROUP, INC.

  	
   

  
	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Eric J. Kufel,
  Chief Executive Officer

  	
  Brad Rader

  
				

 

 10
 

Exhibit B

The Inventure Group, Inc.
Proprietary Rights Agreement

THIS
AGREEMENT CREATES IMPORTANT OBLIGATIONS WHICH ARE BINDING.  PLEASE READ IT IN FULL BEFORE YOU SIGN.

I recognize the importance
of protecting the Company’s relationships and its rights to inventions,
discoveries, ideas, confidential information and other intellectual property,
and for good and valuable consideration which I have received, including my
engagement to provide services to the Company as an independent contractor or
at-will employee (in either event referred to hereinafter as my “Relationship
with the Company,”) or the continuation of my Relationship with the Company, I
agree to the following:

1.             DEFINITIONS.  For
the purposes of this Agreement:

(a)                   “Company”
means The Inventure Group, Inc., and its subsidiaries.

(b)                   “Creation”
means any invention, discovery, idea, concept, design, process, work of
authorship, development or improvement (whether or not subject to copyright or
patent protection and whether or not reduced to practice by me):  (i) relating to any past, present or
reasonably anticipated business of the Company and which is or was created or
otherwise developed during my Relationship with the Company, (ii) which is
or was created or otherwise developed while performing work for the Company, or
(iii) which is or was created or otherwise developed at any time using
equipment, supplies, facilities, information or proprietary rights or other property
of the Company.

(c)                   “Computer Information”
means all information and communications created, received, or stored on or
passed through the Company’s computer and communications systems.  Among other things, Computer Information
includes all of my files, voice mail and e-mail.

(d)                   “Confidential
Information” means information (including information created by me) which
is not generally known about the Company or its business, including without
limitation about its products, projects, designs, developmental or experimental
work, computer programs, software, data bases, know-how, processes,
formulas, recipes, manufacturing processes, customers, suppliers, business
plans, marketing plans and strategies, finances, or personnel, and information
obtained from third parties under confidentiality agreements.

2.             OWNERSHIP OF CREATIONS

(a)                   Inventions
Retained.  I represent that all
matters which I have created or otherwise developed prior to my Relationship
with the Company or my signing this Agreement, which I wish to exclude from my
obligations to the Company under this agreement, are listed below.  If no items are  listed below, I represent that there are no
such matters to be excluded.

 

(b)                   Assignment
of Creations.  I hereby agree to hold
in trust for the sole right and benefit of the Company and assign to the
Company all my right, title and interest in and to any and all Creations
created or otherwise developed, alone or in conjunction with others.  I further agree to assign to any third party,
including the United States government, all my right, title and interest in and
to any and all Creations whenever such assignment is requested by a contract
between the Company and such third party.

(c)                   Maintenance
of Records.  I agree to keep and
maintain adequate and current written records of all Creations made by me, in
the form of notes, sketches, drawings and other notations which may be
specified by the Company, which records shall be available to and remain the
sole property of the Company at all times.

 11
 

(d)                   Disclosure
of Creations and Filings.  I agree to
promptly disclose to the Company in writing all Creations created or otherwise
developed by me alone or in conjunction with others, as well as any and all
patent applications or copyright registrations filed by me during and within
one (1) year after termination of my Relationship with the Company.

(e)                   Assistance.  During and after the period of my
Relationship with the Company, I agree that I will give the Company all
assistance it reasonably requires (at the Company’s expense) to file for,
maintain, protect and enforce the Company’s patents, copyrights, trademarks,
trade secrets and other rights in Creations, in any and all countries.  To that end I will sign documents and do
other acts which the Company may determine necessary or desirable including,
without limitation, giving evidence and testimony in support of the Company’s
rights hereunder.

(f)                    Intellectual
Property Rights in Works of Authorship. 
I acknowledge and agree that any intellectual property rights in
Creations which are works of authorship belong to the Company and are “works
made for hire” within the definition of section 101 of the United States
Copyright Acts of 1976, Title 17, United States Code.  The Company or any of its direct or indirect
licensees shall not be obligated to designate me as author of any design,
software, firmware, related documentation, or any other work of authorship when
distributed publicly or otherwise, nor to make any distribution.

3.             CONFIDENTIAL INFORMATION

(a)                   Ownership
of Confidential Information.  All
Confidential Information which I create or otherwise develop or which comes
into my possession or that previously came into my possession shall be and
remain the exclusive property of the Company.

(b)                   No
Disclosure of Confidential Information. 
Unless authorized in writing by the Company, I will maintain all
Confidential Information in confidence and, except as necessary in conjunction
with my work for the Company, will not copy or make notes of, divulge to anyone
outside the Company or use any of the Confidential Information for my own or
another’s benefit, either during or after the term of my Relationship with the
Company.  I agree that I will promptly
disclose to the Company all Confidential Information developed by me.  I will abide by any policies and procedures
adopted from time to time by the Company to facilitate such disclosures.

(c)                   Returning
the Company Documents and Tangible Property.  Upon request of the Company and, in any
event, upon termination of my Relationship with the Company, I will promptly
surrender and deliver to the Company (and will not keep in my possession or
deliver to anyone else) and agree not to use any Confidential Information,
records, data, notes, reports, proposals, lists, correspondence, computer code,
specifications, drawings, blueprints, sketches, flow diagrams, materials,  equipment, devices or any other documents or
property (including photocopies or other reproductions of any of the aforesaid
items) of the Company.

(d)                   Confidential
Information of Third Parties.  During
my Relationship with the Company I may receive, under non-disclosure
agreements agreed to by authorized representatives of the Company, information
claimed by third parties to be their confidential information.  I agree that I will respect such agreements
and will not disclose such information to any person or organization, except as
is necessary in carrying out my work for the Company consistent with the
Company’s agreement with such third parties. 
At the request of the Company and, in any event, upon the termination of
my Relationship with the Company, I will promptly surrender to the Company any
such information.

4.             NON-USE OF PROPERTY OF THIRD PARTIES.   During my Relationship with the Company, I
will not improperly use or disclose any confidential or proprietary information
or property of any third party (including any former employer).

5.             NO PRIOR RESTRICTIONS.  I hereby represent and warrant that I am free
to enter into or continue my Relationship with the Company and that there are
no contracts or restrictive covenants preventing full performance of my duties.

 12
 

6.             LIMITATIONS ON COMPETITIVE ACTIVITIES DURING
RELATIONSHIP.  During my
Relationship with the Company, I will not, alone or with others, directly or
indirectly, work on, plan, prepare for, organize or engage in any consulting,
employment or other business activity (whether or not for compensation) that is
competitive with the business in which the Company is involved or may hereafter
become involved, nor will I engage in any other activity that conflicts with my
obligations to the Company.  Prior to
working on, planning, preparing for, organizing or engaging in any consulting,
employment or other business activity outside my Relationship with the Company,
I will consult my manager or supervisor to ensure that no conflict of interest
with the Company exists.

7.             PUBLISHING.  Unless approved by the Company in writing, I
will not publish anything in the Company’s business areas of interest during my
Relationship with the Company.

8.             NO GUARANTEE OF EMPLOYMENT.  I expressly acknowledge and agree that this
is not an agreement by the Company to employ me, or otherwise engage my
services, for any period, and unless otherwise expressly agreed in writing
between me and the Company, my Relationship with the Company may be terminated
at any time, with or without cause by either myself or the Company.  All of the terms of this Agreement shall
survive any termination of my Relationship with the Company.

9.             NO EXPECTATION OF PRIVACY.  The Company retains the right, with or
without cause or notice to me, to access or monitor all Computer Information,
including but not limited to my e-mail and voice mail.  I agree that I have no reasonable expectation
of privacy in the Computer Information and expressly waive any right of privacy
or similar right in the Computer Information. 
I agree that Computer Information is the sole and exclusive property of
the Company.  Any of my files, e-mail
or other Computer Information stored on the Company’s computer and/or
communications systems shall become the property of the Company.  I agree that I shall not install or use
encryption software on any of the Company’s computers without first obtaining
written permission from my manager or supervisor.  I agree that I shall not use passwords or
encryption keys that are unknown to my manager or supervisor.

10.           MISCELLANEOUS

(a)                   Severability.
If any provision of this Agreement or portion thereof is determined by a court
of competent jurisdiction to be wholly or partially unenforceable for any
reason, such provision or portion thereof shall be considered separate from the
remainder of this Agreement, which shall remain in full force and effect.

(b)                   Waiver.  The Company’s waiver or failure to enforce
any violation or provision of this Agreement shall not constitute a waiver of
its rights hereunder with respect to any other or continuing violation or
provision of this Agreement, and shall be effective only if in writing, signed
by the Company, and then only in the specific instance and for the specific
purpose given.

(c)                   Governing
Law. This agreement shall be governed by and construed and enforced in
accordance with the laws of the State of Arizona.  I agree that suit to enforce any provision of
this Agreement or to obtain any remedy with respect hereto may be brought in
Superior Court, Maricopa County, Arizona, and for this purpose I hereby
expressly and irrevocably consent to the jurisdiction of this court.

(d)                   Successors.  This Agreement shall be for the benefit of
and be binding upon:  i) my
executors, heirs, legatees and personal representatives, and ii) the
successors and assigns of the Company.

(e)                   Entirety
of Agreement.  This Agreement
supersedes all prior agreements concerning Creations, Computer Information,
Confidential Information, and the other matters referred to herein between
myself and the Company.  No amendment or modification of
this Agreement shall be deemed effective unless made in writing signed by me
and the Company.

 13

	
  

  	
  Employee
  or Independent Contractor:

  
	
   

  	
   

  
	
  

  	
  /s/ Brad Rader

  
	
   

  	
  Brad Rader

  
	
   

  	
   

  
	
   

  	
  May 17, 2007

  
	
   

  	
  Date

  
	
   

  	
   

  
	
   

  	
   

  
	
  Accepted and
  agreed:

  
	
   

  
	
  The
  Inventure Group, Inc.

  
	
   

  
	
   

  
	
  By:

  	
  /s/ Terry
  McDaniels

  	
   

  
	
  Name:

  	
  Terry McDaniels

  	
   

  
	
  Its:

  	
  COO

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