1. This notice of default is recorded pursuant to ORS 86.735(3) with respect to a deed of trust (the “Trust Deed”) dated October 12, 2006, by RoadRunner Flooring & Const., Inc., (the “Grantor”), to First Oregon Title Company (the “Trustee”), to secure payment and performance of certain obligations of the Grantor to Ron and Loretta Quant (the “Beneficiaries”), including repayment of the promissory note (the “Note”) dated October 12, 2006, in the principal amount of $100,000 (“the Note”).

2. The description of the parcels of real property covered by the Trust Deed is:

Lot 22 of Canyon Mountain Heights Addition to the Town of Canyon City, Grant County, Oregon, as shown by the plat thereof on file and of record in the office of the county clerk of said county and state on January 16, 2002. (Tax Acct. #3-2 13-31-35CA; TL 2400; Ref. 39331)

3. The Trust Deed was recorded on October 30, 2006, as Document Number20062786B in the real property records of Grant County, Oregon.

4. The successor trustee hereby certifies that no action has been instituted to recover the obligation, or any part thereof, now remaining secured by the Trust Deed or, if such action has been instituted, such action has been dismissed except as permitted by ORS86.735(4).

5. The default for which the foreclosure is made is the Grantor’s failure to pay the entire balance which was due April 30, 2007.

6. By reason of said default, Ron and Loretta Quant, as beneficiaries under the Trust Deed, have declared all sums owing on the obligation secured by the Trust Deed immediately due and payable which sums are as follows: (a) the principal balance of $89,000, (b) accrued interest of $3,325.91 as of November 6, 2007, and interest accruing thereafter on the principal balance at the default rate of 11percent per annum ($26.82 per day), (c) late charges and other charges of $50 as of May 5, 2007, and any late charges accruing thereafter, (d) amounts that the successor beneficiary has paid on or may hereinafter pay to protect the lien, including by way of illustration, but not limitation, taxes, assessments, interest on prior liens, and insurance premiums, and (e) costs and attorney and trustee fees incurred by the successor beneficiary in foreclosure, including the cost of a trustee’s sale guarantee and any other environmental or appraisal report.

7. Notice is hereby given that by reason of said default, Ron and Loretta Quant, as beneficiaries of the Trust Deed, and the successor trustee have elected to foreclose the trust deed by advertisement and sale pursuant to ORS 86.705 to ORS86.795 and to sell the real property identified in paragraph 2 to satisfy the obligation that is secured by the Trust Deed.

8. The sale will be conducted on Tuesday, April 8, 2008, at ten o’clock (10:00) a.m., based on the standard of time established by ORS187.110, just outside the main entrance of the Grant County Courthouse, 201 S. Humbolt Street, Canyon City, Oregon 97820.

9. 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 this foreclosure proceeding dismissed and the trust deed reinstated by payment to Ron and Loretta Quant, as beneficiaries, of the entire amount then due, (other than such portion of principal as would not then be due had no default occurred) and by curing any other default complained of herein that is capable of being cured by tendering the performance required under the obligation or Trust Deed, and, in addition to paying said 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 and attorney fees not exceeding the amount provided by ORS 86.753.

10. In construing this notice, the singular includes the plural, the word “grantor” includes any successor in interest to the grantor 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 successor in interest, if any.

For further information, please contact Jeffrey M. Wilson at Miller Nash LLP, 446 N.W. Third Street, Suite 230, Prineville, Oregon 97754 or telephone him at (541) 447-5777.

DATED: November 20, 2007.

Jeffrey M. Wilson

Successor Trustee