REFERENCE IS HEREBY MADE to that certain trust deed made by GARY BETHSCHEIDER and TERRA CONNELL as the grantors, and WALLOWA TITLE COMPANY as the original trustee, and ROLAND W. JOHNSON as successor trustee, and THOMAS R. CONNELL JR. and DALLENE D. CONNELL, husband and wife, as the original beneficiaries under that certain Trust Deed dated August 1, 2003 and recorded in the Office of the Wallowa County Clerk, Wallowa County, Oregon on August 11, 2003 as microfiche no. 2003-48768, covering the following described real property in Wallowa, County, Oregon:

Lots 7 and 8, Block 7, TOWN OF JOSEPH, as shown by the plat thereof on file and of record in the Office of the County Clerk of Wallowa County, Oregon in Book D of Deeds. Page 35.

PROPERTY ADDRESS: 104 S. Main Street Joseph, OR 97846

The interest of the original beneficiaries, Thomas R. Connell Jr. and Dallene D. Connell, husband and wife, was assigned and transferred to THOMAS R. CONNELL JR. and DALLENE D. CONNELL, Trustees under the Connell Living Trust dated June 13, 2007 and any amendments thereto, by Assignment of Beneficiary’s Interest in Promissory Note and Trust Deed, dated July 24, 2007 and recorded in the Office of the Wallowa County Clerk on July 27, 2007 as microfiche no. 2007-58156. Roland W. Johnson was appointed successor trustee by Appointment of Successor Trustee dated January 5, 2010 and recorded in the Office of the Wallowa County Clerk on January 6, 2010 as Document No. 2010-63015.

Both the beneficiary and trustee have elected to sell the real property to satisfy the obligations secured by the trust deed and a Notice of Default and Election to Sell, pursuant to ORS 86.735, dated January 8, 2010 was recorded, on January 8, 2010 in the Office of the Wallowa County Clerk, Wallowa County, Oregon, as Document No.

2010-63027.

There is a default by the grantors, or their successors in interest, or other person owing an obligation, the performance of which is secured by the trust deed, with respect to provisions therein which authorize sale in the event of default of such provisions.

The defaults for which foreclosure is made are (1) failure to provide proof of insurance and a loss payable clause in favor of the Beneficiaries and (2) failure to

pay the remaining principal and accrued interest of the Promissory Note on the due date of June 1, 2005, together with title expense, costs, trustee’s fees and attorney’s fees incurred herein by reason of said default; and any further sums advanced by the beneficiary for the protection of the above described real property and its

interest therein.

The entire balance of the Promissory Note and Trust Deed is now due and owing; the balance thereof is the principal sum of $19,195.44, together with accrued interest at the rate of 8.00% per annum from October 1, 2004 through December 31, 2009 of $8,557.10, and interest on the principal sum at 8.00% per annum thereafter until paid, together with title expense, costs, trustee’s fees and attorney’s fees incurred herein by reason of said default and any further sums advanced by the beneficiary for the protection of the above described property and its interest therein.

Notice is hereby given that the beneficiary and trustee, by reason of said default, have elected and do hereby elect to foreclose said trust deed by advertisement and sale pursuant to ORS 86.705 to 86.795 and to cause to be sold at public auction, to the highest bidder for cash, the interest in the described property which the grantors had, or had power to convey, at the time the grantor executed the trust deed, together with any interest the grantor or grantor’s successors in interest acquired after the execution of the trust deed, to satisfy the obligations secured by the trust deed and the expenses of the sale, including the compensation of the trustee as provided by law, and reasonable fees of trustee’s attorneys.

WHEREFORE, NOTICE IS HEREBY GIVEN that ROLAND W. JOHNSON, the undersigned trustee, will on June 1, 2010 AT THE HOUR OF 10:30 AM, in accord with the standard of time established by ORS 187.110, at the main lobby of the Wallowa County Courthouse, 101 South River Street, adjacent to the west entrance to said courthouse, in the City of Enterprise, County of Wallowa, State of Oregon, sell at public auction, to the highest bidder for cash, the interest in the described property which the grantors had, or had power to convey, at the time the grantors executed the trust deed, together with any interest the grantors or grantors’ successors in interest acquired

after the execution of the trust deed, to satisfy the foregoing obligations secured by the trust deed and the expenses of the sale, including the compensation of the trustee as provided by law, and reasonable fees of trustee’s attorneys.

Notice is further given that any person named in ORS 86.753 has the right at any time prior to five days before the date last set for the sale, to have the foreclosure proceeding dismissed and the trust deed reinstated by payment to the beneficiary of the entire balance of the Promissory Note and Trust Deed and by curing any other default complained of herein that is capable of being cured by tendering the performance required under this obligation or trust deed, and in addition to paying the sums or tendering the performance necessary to cure the default, by paying all costs and expenses actually incurred in enforcing the obligation and trust deed, together with trustee’s and attorney fees not exceeding the amounts provided by ORS 86.753.

Upon request of those persons named in ORS 86.753, made prior to five days before the date set for sale, a quotation of the total amount required to reinstate the

Trust Deed, and avoid a sale (which includes the entire principal balance and accrued and unpaid interest) will be provided by the undersigned Trustee.

In construing this notice, the singular includes the plural, the word grantor or grantors includes any successor in interest to the grantor or grantors as well as any other person owing an obligation, the performance of which is secured by said trust deed, and the words trustee and beneficiary include their respective successors in interest, if any.

Dated this 20th day of January, 2010.

Roland W. Johnson, Successor

Trustee

200 W. Main/Street

P.O. Box E

Enterprise, OR 97828

(541) 426-4912