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2007-081393 ington County, Oregon 2007.081393 412007 03:25:24 PM ' D-DW Crital Stna22 I REED $15.00 $5.00 $11.00 - Total = $31.00 THIS SPACE RESERV 01145053200700813930030036 ~a l,y PI, Richard Hobemlcht, Director of Assessment and r., Taxation and Ex-Officio County Clerk for Washington County, Oregon, do hereby certify that the within ~l Instrument of writing was rec Ived and recorded In the book of records of said cou t* J Richard Hobemlcht, Assessmentand Taxation, Ex-0ttlclo County Clerk After recording return to: City of Tigard 13125 SW Hall Blvd Tigard, OR 97223 Until a change is requested all tax statements shall be sent to the following address: J City of Tigard 13125 SW Hall Blvd Tigard, OR 97223 File No.: 7034-1073204 (nt) Date: July 23, 2007 O STATUTORY WARRANTY DEED Ash Creek Properties LLC, an Oregon Limited Liability Company, Grantor, conveys and warrants to City of Tigard , Grantee, the following described real property free of liens and encumbrances, Z except as specifically set forth herein: ® See Legal Description attached hereto as Exhibit A and by this reference incorporated herein. Subject to: 1. The Taxes, a lien not yet payable. 2. Covenants, conditions, restrictions and/or easements, if any, affecting title, which may appear in the public record, including those shown on any recorded plat or survey. The true consideration for this conveyance is $345,000.00. (Here comply with requirements of ORS 93.030) Page 1 of 3 s r APN: R0231920 Statutory Warranty Deed File No.: 7034-1073204 (nt) - continued Date: 07/23/2007 BEFORE SIGNING OR ACCEPTING THIS INSTRUMENT, THE PERSON TRANSFERRING FEE TITLE SHOULD INQUIRE ABOUT THE PERSON'S RIGHTS, IF ANY, UNDER ORS 197.352. THIS INSTRUMENT DOES NOT ALLOW USE OF THE PROPERTY DESCRIBED IN THIS INSTRUMENT IN VIOLATION OF APPLICABLE LAND USE LAWS AND REGULATIONS. BEFORE SIGNING OR ACCEPTING THIS INSTRUMENT, THE PERSON ACQUIRING FEE TITLE TO THE PROPERTY SHOULD CHECK WITH THE APPROPRIATE CITY OR COUNTY PLANNING DEPARTMENT TO VERIFY APPROVED USES, TO DETERMINE ANY LIMITS ON LAWSUITS AGAINST FARMING OR FOREST PRACTICES AS DEFINED IN ORS 30.930 AND TO INQUIRE ABOUT THE RIGHTS OF NEIGHBORING PROPERTY OWNERS, IF ANY, UNDER ORS 197.352. Dated this 2-Li day of s. 20 } Ash Creek Properties LLC By: M. Dale Richards, Managing Member STATE OF Oregon ) )SS. County of Washington ) This instrument was acknowledged before me on this ; „a >day of -^r 20:_ by M. Dale Richards as Managing Member of Ash Creek Properties LLC 0~ behalf of . ~cf ci44 sEAL w G.olp To XI* ~!{,N nng Notary Public for Oregon J 1g, x M1f Cam! ~_v. " My commission expires: My CO AM15540~3 4pI1121E~ Page 2 of 3 Preliminary Report Order No.: 7034-1073204 Page 6 of 6 Exhibit "A" Real property in the County of Washington, State of Oregon, described as follows: Lots 28 and 29, ASH CREEK ESTATES, in the City of Tigard, County of Washington and State of Oregon; Tax Parcel Number: R0231920 First American Title Washl County, Oregon 2008_028468 03131,. , 03:01:20 PM O-R1BAM Crill Stns:16 D HOFFMAN $45.00 $5.00 $11.00 • Total = $61.00 AFTER RECORDING RETURN TO: 01233736200800284680090091 I, Richard Hobemicht, Director of Assessment and Jordan Schrader Ramis PC Taxation and Ex-Offlclo County Clerk for Washington County, Oregon, do hereby certify that thewlthin PO Box 230669 Instrument of writing was rocelwd and recorded In the ab book of records of said coup A ••F Portland OR 97281 Richard Hobemicht, Director of Assessment + {E 4 (50014-36792 - JLD) Taxation, Ex-Offlclo County Clerk This space is reserved for recorder's use FIRST AMENDMENT TO DECLARATION OF CONDITIONS AND COVENANTS APPLICABLE TO ASH CREEK ESTATES This FIRST AMENDMENT TO DECLARATION OF CONDITIONS AND COVENANTS APPLICABLE TO ASH CREEK ESTATES (the "First Amendment"), dated this 12 day of WW--H 2008 (the "Effective bate"); is entered Into by and between ASH CREEK PROPERTIES, LLC, an Oregon limited liability company ("Declarant") and the undersigned owners (collectively, the "Owners") of Lots in Ash ci Creek Estates. The legal description for Ash Creek Estates is attached hereto as Exhibit A. RECITALS A. Declarant executed and recorded on June 28, 2007 as Document No. 2007- 072138 in the records of Washington County, Oregon, that certain Declaration of Restrictions, Conditions and Covenants Applicable to Ash Creek Estates (the "Declaration"). Capitalized terms used but not defined herein shall have the meanings set forth in the Declaration. B. Declarant and the Owners have agreed to release Lots 28 and 29 from the Declaration, and to convey Tract A to the City of Tigard, Oregon. C. As of the Effective Date, Declarant and the Owners own 29 Lots in Ash Creek Estates, and Declarant owns Tract A. D. Declarant and the Owners wish to amend the Declaration as set forth in this First Amendment. Page 1 - FIRST AMENDMENT 50014-36792 Ash Creek CCR Amend.do6G/3.11112008 AGREEMENT NOW THEREFORE, for good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, Declarant and the Owners hereby agree to amend the Declaration as set forth below: 1. Lots 28 and 29. Lots 28 and 29 are hereby fully released from the Declaration. There are no unpaid assessments against Lots 28 and 29 as of the Effective Date, and no assessments shall hereafter be levied against such Lots. All references to Lots 28 and 29 in the Declaration are hereby deleted. All calculations for assessments made pursuant to the Declaration shall be made as if Lots 28 and 29 were never included in the Declaration. 2. Tract A. The Owners and Declarant hereby acknowledge and consent to the conveyance of Tract A by Declarant to the City of Tigard, Oregon. While consent or approval of the Owners is not required for any such conveyance, the Owners in this case wished to document their approval. 3. Amendment. Owners and Declarant represent that, as of the Effective Date, they collectively hold at least seventy-five percent (75%) of the total votes in Ash Creek Estates. 4. Full Force and Effect. The Declaration, as modified by this First Amendment, is hereby ratified and affirmed and shall continue in full force and effect. [Signature page follows] Page 2 - FIRST AMENDMENT 50014-36792 127863 (2).do6G/311112008 IN WITNESS WHEREOF, the parties have executed this First Amendment to be effective as of the Effective Date. DECLARANT: OWNERS: ASH CREEK PROPERTIES, LLC, an LOTS 1, 4, 5, 9. 10, 11, 12, 13, 14, 19, 22, 23, 26 Oregon limited liability company and 27 .-ASH CREEK PROPERTIES, LLC By: Name: it ITT By: Its: /arc k -c '7 Name: `11 lT i~ laic- S Its: ~o1~c 2Y.t. X., LOTS 3, 7, 8, 16, 17 and 25 WINDWOOD CONSTRUCTION, INC. By- Name: ` Its: LOT 24 VERDE ASH CREEK, LLC Y: Name: /2,1' Its: LOTS 28 and 29 CITY OF TIG By: Name: Its: [Notary Blocks on following pages] Page 3 - FIRST AMENDMENT 50014-36792 127863 (2).do6GI3111 2008 STATE OF OREGON ) ss. County of MLS11111l 10 ) This instrument was acknowledged before me on %~~3✓c.~':► / , 2008, by )OtL f141-- Nj 1~~` . I CI; s t , as NIuti7 of Ash Creek Properties, LLC, an Oregon limited liability company. NOTARY PUBLIC FOR OREGON OFF` My Commission Expires: /G` G .2L i d QREERA GAISTON NOTARY PUBLIC-OREGON COMMISSION NO. 421266 MY COMMISSION EXPIRES OCT. 10, 2011, STATE OF OREGON ) ss. County of a~,aS/11I;C 1"1 ) This instrument was acknowledged before me on /i lL; d) / , 2008, by J)) %I L/lam ° S , as r7t of Windwood Construction, Inc., an Oregon _i i company. oclAt SEA!- NOTARY PUBLIC FOR OREGON GMERA GAMN My Commission Expires: G - dG - 2i r l NOTARY PUBLIC-OREGON *COMMISSION NO. 421266 MY COMMISSION EXPIRES OCT. 10, 2011 STATE OF OREGON ) ) ss. County of l lfrtiShe1]4-L) ) This instrument was acknowledged before me on "hil fj) 1/1 2008, as Niee7) of Verde Ash Creek, LLC, an Oregon limited liability company. NOT ARY PUBLIC FOR OREGON EERMy Commission Expires: f~ L -2~ ien;0FR Y PUISSION N0.421286 MY COMMISSION EXPIRES OCT. 10, 2011 Page 4 - FIRST AMENDMENT 50014-36792 127863 (2).aoc~G13,1112008 STATE OF OREGON ) ss County of YVA`2 ) . This instrument was acknowledged before me on MAK(-N 12- 2008, by as rw'A N~%C2 of the City of Tigard, an Oregon municipal corporation. NOT RY PUBL FOR OREGON My Commission Expires: 120 OFFICIAL SEAL ? J BEHGTSON NOTARY P'31 JC-OREGON COMMISSM':%i NO.413772 MY COMMISSION D P!-' ~ S APR. 27, 2011 Page 5 - FIRST AMENDMENT 50014-36792 127H63 (2).doc 3111 '2008 EXHIBIT A Legal Description of Ash Creek Estates PLAT OF ASH CREEK ESTATES, RECORDED AS DOCUMENT NO. 2007072138, WASHINGTON COUNTY, OREGON, AS CORRECTED BY AFFIDAVIT OF CORRECTION, RECORDED AS DOCUMENT NO. 2007-094547, WASHINGTON COUNTY, OREGON. Page 6 - FIRST AMENDMENT 50014-36792 127863 (z) doC.G.~3,1 Uzoos ASH CREEK ESTATES OWNERSHIP INFORMATION LOTS 1 - 29 LOT NUMBER OWNER DATE OF PURCHASE Seller 1 ASH CREEK PROPERTIES, LLC 2 GOODLETT MARSHALL 8/14/2007 BUILDING AND DEVELOPMENT COMPANY 3 WINDWOOD 7/27/2007 CONSTRUCTION, INC. ASH CREEK 4 PROPERTIES, LLC Seller 5 ASH CREEK Seller PROPERTIES, LLC 6 GOODLETT MARSHALL 08/14/2007 BUILDING AND DEVELOPMENT COMPANY 7 WINDWOOD 10/25/2007 CONSTRUCTION, INC. 8 WINDWOOD 07/27/2007 CONSTRUCTION, INC. 9 ASH CREEK Seller PROPERTIES, LLC 10 ASH CREEK Seller PROPERTIES, LLC 11 ASH CREEK Seller PROPERTIES, LLC 12 ASH CREEK Seller PROPERTIES, LLC 13 ASH CREEK Seller PROPERTIES, LLC 14 ASH CREEK Seller PROPERTIES, LLC 50014-36792 127087 (2).doc'.Gi3 /!!2008 15 JAMES O. LEET AND 7/18/07 SALLY CRAIG 16 WINDOOD 7/27/07 CONSTRUCTION, INC. 17 WINDOOD 7/27/07 CONSTRUCTION, INC. 18 DARYL & JULIE 07/12/2007 RETZLAFF 19 ASH CREEK Seller PROPERTIES, LLC 20 GOODLETT MARSHALL 11/15/07 BUILDING AND DEVELOPMENT COMPANY 21 GOODLETT MARSHALL 11/15/07 BUILDING AND DEVELOPMENT COMPANY 22 ASH CREEK Seller PROPERTIES, LLC 23 ASH CREEK Seller PROPERTIES, LLC 24 VERDE ASH CREEK, LLC 11/01/2007 25 WINDWOOD 07/27/2007 CONSTRUCTION, INC. 26 ASH CREEK Seller PROPERTIES, LLC 27 ASH CREEK Seller PROPERTIES, LLC 28 CITY OF TIGARD 07/24/2007 29 CITY OF TIGARD 07/24/2007 I 50014-36791 127087 (1).do6G1311111008 Notes: 1. Windwood Construction and Verde Ash Creek, LLC are owned by Ash Creek Properties, LLC, developer Dale Richards. Lots 1, 3-5, 7-14, 16, 17, 19, 22- 27, are all owned by Mr. Richards. 2. Each lot owns 3.45% of the total ownership. 3. Dale Richards Declarant owns 21 lots including all in the names referenced in Note 1 above. City of Tigard owns Lots 28 and 29. Declarant/owner and City of Tigard own 23 lots together, totaling 79.3%, enough to amend CCRs per the ORS. 50014-36792 127087 (2).doclG/3/1//2008 M r First American Title Insurance Company of Oregon a 10260 CIA/ Greenburg Rd, Ste 170 41 1^r+➢_~.1, Fir., American Portly JR 97223 Phn - (503)244-8323 ' Fax- (866)734-1403 City of Tigard July 24, 2007 13125 SW Hall Blvd File No.: 7034-1073204 (nt) Tigard, OR 97223 Re: Property: 9750 SW 74th Avenue, Tigard, OR 97223 The closing of the above referenced transaction is now complete. For your records we enclose the following: (Keep these instruments in a safe place as some of them cannot be replaced.) • If applicable, your refund [ X ] is enclosed by check; has been [ ] wire transferred [ ] was direct deposited to your account • Final HUD-I Statement and/or Settlement Statement Your Deed and Policy of Title Insurance will be forwarded separately. If checks are included in this package, please negotiate as soon as possible. Should you have any questions or need further assistance, please contact the undersigned. First American Title Insurance Company of Oregon Barbara Jones, Assistant for Nicola Timm, Escrow Officer FirstAmerican Firs iAmerican Title Insurance Company of Oregon 10260 SW Greenburg Rd, Ste 170 • Portland, OR 97223 Buyer's Final Settlement Statement 4 A& Property: 9750 SW 74th Avenue, Tigard, OR 97223 File No: 7034-1073204 Lot: 28 Tract: 1 Officer: Nicola Timm/BJJ New Loan No: Settlement Date: 07/24/2007 Disbursement Date: 07/24/2007 Print Date: 7/24/2007, 4:01 PM Buyer: City of Tigard Address: 13125 SW Hall Blvd, Tigard, OR 97223 Seller: Ash Creek Properties LLC Address: 12655 SW North Dakota Street, Tigard, OR 97223 Charge Description Buyer Charge Buyer Credit Consideration: Total Consideration 345,000.00 Deposits in Escrow: Receipt No. 703436665 on 07/05/2007 by City of Tigard 5,000.00 Receipt No. 703436888 on 07/24/2007 by City of Tigard 345,473.00 Prorations: Countv Tax 07/01/07 to 07/24/07 (a)$3048.29/ yr 192.08 Title/Escrow Charges to: Escrow/Closing Fee - First American Title Insurance Company of Oregon 262.50 Record Warranty Deed - First American Title Insurance Com an of Ore on _ 31.00 Transfer Tax - First American Title Insurance Company of Oregon 172.50 Cash ( From) (X To) Borrower 5,199.08 Totals 350,665.08 350,665.08 First Ameri a nsurance Company of Oregon By Nicola Tim First American Tide Insurance Company of Oregon, Portland CHECK NO. 87083 PR.-NWEST Ofc. 7034 (1022) (ntBJJ) DATE: 0712412007 FILE NO, 7034-1073204 SETTLEMENT DATE: 071242007 CHECK AMOUNT: $ 5,199.08 BUYER: City of Tigard SELLER: Ash Creek Properties LLC Property Address: 9750 SW 74th Avenue, Tigard, OR 97223 Lot: 28 Track 1 Buyer Refund Re: Charge Details: r. r. 11172:2 W-1:14,V1 FAITil ,,I lid, 11, 11:4 .:.•r a s t A rn e A First Ameritutt 'Title hisurA4tCe Costpuiq PR. WEST U.S. Bank- 87083 of Oregon Ofc. 7034 (1022) 2000 SW Morrison Street 10260 SJV G verrbrug Rd, Ste 170 Fbrdand OR 972e5 24-2211230 Portlarul, OR 97223 u. > Date 072412007 ' (503)24d-8323 1'1 ~ih ~I~ vu FILE NO, 7034.1073204 i. PAY **$59199.08* x~c9cx~xxxx ~ DOLLARS :`;******5,199.08 I I Trust Account Re: Void Aflpr 180 Davs TO THE City of Tigard ORDER 13125 SW Hail Blvd OF Tigard, OR 97223 i161,111! ol111r•~ THE FACE OF THIS DOCUMENT INCLUDES rr .•r 00 140T rr IS VISIBLE . M . w First American Title Insurance Company of Oregon iY /s 10260 Sul Greenburg Rd, Ste 170 t` 1 i - American Portla A 97223 ~!L*! Phn - (503)244-8323 Fax - (866)734-1403 City of Tigard July 24, 2007 13125 SW Hall Blvd File No.: 7034-1073204 (nQ Tigard, OR 97223 Re: Property: 9750 SW 74th Avenue, Tigard, OR 97223 The closing of the above referenced transaction is now complete. For your records we enclose the following: (Keep these instruments in a safe place as some of them cannot be replaced.) • If applicable, your refund [ X ] is enclosed by check; has been [ ] wire transferred [ ] was direct deposited to your account • Final HUD-I Statement and/or Settlement Statement Your Deed and Policy of Title Insurance will be forwarded separately. If checks are included in this package, please negotiate as soon as possible. Should you have any questions or need further assistance, please contact the undersigned. First American Title Insurance Company of Oregon Barbara Jones, Assistant for Nicola Timm, Escrow Officer 1 . First American Title Insurance Company of Oregon First American 10260 SW Greenburg Rd, Ste 170 • Portland, OR 97223 Buyer's Final Settlement Statement Property: 9750 SW 74th Avenue, Tigard, OR 97223 File No: 7034-1073204 Lot: 28 Tract: 1 Officer: Nicola Timm/BJJ New Loan No: Settlement Date: 07/24/2007 Disbursement Date: 07/24/2007 Print Date: 7/24/2007,4:01 PM Buyer: City of Tigard Address: 13125 SW Hall Blvd, Tigard, OR 97223 Seller: Ash Creek Properties LLC Address: 12655 SW North Dakota Street, Tigard, OR 97223 Charge Description Buyer Charg.e Buyer Credit Consideration: Total Consideration 345,000.00 Deposits in Escrow: Receipt No. 703436665 on 07/05/2007 by City of Tigard 5,000.00 Receipt No. 703436888 on 07/24/2007 by City of Tigard 345,473.00 Prorations: County Tax 07/01/07 to 07/24/07 (,$3048.29/yr 192.08 Title/Escrow Charges to: Escrow/Closing Fee - First American Title Insurance Company of Oregon 262.50 Record Warranty Deed - First American Title Insurance Com aaof Oregon 31.00 Transfer Tax - First American Title Insurance Company of Oregon 172.50 Cash ( From) (X To) Borrower 5,199.08 i Totals 350,665.08 350.665.08 First Ameri a nsurance Company of Oregon By__ / Nicola Tim Page 1 of I First American Title Insurance Company of Oregon, Portland CHECK NO, 87083 r PR.-NWEST Ofc. 7034 (1022) (nt)BJJJ r DATE: 07/2401007 FILE NO, 7034-1073204 SETTLEMENT DATE: 07(242007 CHECK AMOUNT: $ 5,199.08 BUYER: City of Tigard SELLER: Ash Creek Properties LLC Property Address: 9750 SW 74th Avenue, Tigard, OR 97223 Lot: 28 Tract: 1 Buyer Refund Re: Charge I]etails: 6 ORIGINAL DOCUMENT IS PRINTED ON CHEMICAL REACTIVE PAPER & HAS A MICROPRINTED BORDER 0 First Aw icau Title Itasurrritee Cottipuup PR, NMST U.S. B„nir- 87083 ti - f Oreg03t Ofc. 7034 (1022) 2000 ,SW'vtorrison Street a Portland OR 97205 242211230 10260 SIF g OR 97 223 Rrl Ste 170 I Portland, lit e~ _(S©3832- 3204 ~I IuI IIr Date 07242007 " FILE NO. 7034-107 I I r r r r r r r "S511 r r r i icxxxxxxxx xx~txxx~cx~c PAY 99.08 DOLLARS S****''rx5,199.08 Trust Account Re: ~,i1 ds ICI ~i Vnid Aftar 18011 iI il~t 4iIi1~' 4 . TO THE City of Tigard iIU ill ~'hRI ~~,~a . F ORDER 13125 SW Hall Blvd OF Tigard, OR 97223' II 1- I - - = _ V~~~I' ~IIIUIiI ~IlI~~~httl~lll, 44U Illiu PSI ~I ~ill~'.. - . - 1 I I First American Title Insurance Company of Oregon First American 10260 SW Greenburg Rd, Ste 170 • Portland, OR 97223 Buyer's Estimated Settlement Statement Property: 9750 SW 74th Avenue, Tigard, OR 97223 File No: 7034-1073204 Lot: 28 Tract: 1 Officer: Nicola Timni/nt New Loan No: Settlement Date: Disbursement Date: 07/27/2007 Print Date: 7/23/2007, 2:28 PM Buyer: City of Tigard Address: 13125 SW Hall Blvd, Tigard, OR 97223 Seller: Ash Creek Properties LLC Address: 12655 SW North Dakota Street, Tigard, OR 97223 Charge Description Buyer Charge Buyer Credit Consideration: Total Consideration 345,000.00 Deposits in Escrow: Receipt No. 703436665 on 07/05/2007 b City of Tigard 5,000.00 Prorations: County Tax 07/01/07 to 07/27/07 (a)$3048.29/yr 217.14 Title/Escrow Charges to: _ Escrow/Closing Fee - first American Title Insurance Company of Oregon 262.50 Record Warranty Deed-First - First American Title Insurance Company of Ore on 38.00 Transfer Tax - First American Title Insurance Company of Oregon 172.50 Cash (X From) ( To) Borrower 340,255.86 Totals 345,473.00 345,473.00 BUYER(S): City of TigaFd By: Craig Prosser, City Manager First American Title Insurance Company of Oregon B r / Nicola Timm Page 1 of 1 First vican Title Insurance Company of Oregon 4. +a 1026 Greenburg Rd, Ste 170 First American Portland, OR 97223 Phn - (503)244-8323 Fax - (866)734-1403 ESCROW AGREEMENT (SALE) File No: 7034-1073204 (nt) Date: July 23, 2007 Seller: Ash Creek Properties LLC Buyer: City of Tigard Property Address: 9750 SW 74th Avenue, Tigard, OR 97223 TRANSACTION INSTRUCTIONS To: First American Title Insurance Company of Oregon, hereinafter "Escrow Agent" Real Property Description: As set forth in Preliminary Title Report issued by First American Title Insurance Company of Oregon, Order/File No. 7034-1073204 dated June 25, 2007 a copy of which has been read and approved by Seller and Buyer. Seller deposits with Escrow Agent, pursuant to these instructions, the following: • Fully executed Statutory Warranty Deed • 1099 Input Form or Seller Certification And authorizes delivery, release, and recording of documents when you hold for the account of the Seller the sum as shown on the attached Estimated Settlement Statement, and, further authorizes credits, deductions and adjustments as set forth on the attached Estimated Settlement Statement. Certain items shown on the closing statement are estimates only and the final figures may be adjusted to accommodate exact amounts required at the time of disbursement. Buyer deposits with Escrow Agent, pursuant to these instructions, the following: • Funds to close as shown on the Estimated Settlement Statement • Fully executed loan documents • Copy of Statutory Warranty Deed which has been read and approved And authorizes delivery, release and recording of documents when you are prepared to: 1. Issue an Owner's Title Insurance Policy (ALTA 2006 ) in standard form in the amount of the sales price, insuring the Grantee on the deed deposited by Seller, which has been read and approved by Buyer, as the owner of that certain real property referenced above, subject to exclusions, conditions and stipulations as contained in the policy and special exceptions # as appear on the Preliminary Title Report referenced above. And, further authorizes a) if Buyer is obtaining a new loan, recording and/or release of any documents required by or on behalf of Lender, including, without limitation, recording prior to the receipt of loan proceeds; b) credits, deductions and adjustments as set forth on the attached Estimated Settlement Statement. Certain items shown on the closing statement are estimates only and the final figures may be adjusted to accommodate exact amounts required at the time of disbursement. Page 1 of 6 First American Title Insurance Company of Oregon File No.: 7034-1073204 (nt) Date: July 23, 2007 AUTHORIZATIONS Taxes: Closing tax prorations for the year 2007-2008 are to be based upon 2006-2007 taxes, which is accepted by the undersigned as a final proration for the purposes of the escrow closing. The undersigned will not hold First American Title Insurance Company of Oregon responsible for any re-proration caused by any increase or decrease of the tax amount due. The Buyer understands that the 200702008 real property taxes will be due and payable by November 15 . If Buyer has not received the tax billing by that time, Buyer will need to contact the Washington Tax Collector's office to obtain the tax payment information and to avoid any delinquent charges. Tax Collector's Phone No.: Property Tax Account No: R0231920 Prorate: You are to prorate as of the following: Close of Escrow Fire Insurance: The parties are to secure fire insurance outside of escrow to protect their interest(s) as they may appear. Counterpart: These instructions may be signed in counterpart. Escrow Agent may consider, upon receipt, all duly executed counterparts to be a single instruction. Fax: Escrow Agent is authorized to complete all necessary actions set forth herein upon receipt of a signed facsimile (FAX) of these instructions without receipt of original signed instructions. Electronic Transfer: Escrow Agent may, in its discretion, receive and/or disburse any funds in connection with this agreement by electronic (wire) transfer. If required by any of the parties to utilize this method of transfer, the requesting party agrees to pay any reasonable fee as assessed by Escrow Agent for this service. Deposits: Parties understand and agree that all checks, money orders or drafts will be processed for collection in the normal course of business. Parties further understand that all funds required to close must be payable to First American Title Insurance Company of Oregon and must be collected funds, as required by Federal and State or Oregon statutes and regulations prior to the Escrow Agent's disbursement of any sums. Escrow Agent may commingle funds received with escrow funds of others, and may, without limitation, deposit such funds in its custodial or escrow accounts with any reputable trust company, bank, savings bank, savings association or other financial services entity. It is understood that Escrow Agent, except by virtue of separate signed instructions as required by State of Oregon regulation, shall be under no obligation to invest the funds deposited on behalf of any depositor, nor shall it be accountable for any earnings or incidental benefit attributable to the funds which may be received by Escrow Agent while it holds such funds. The undersigned are hereby informed that Escrow Agent deposits all funds into a non-interest bearing account and receives or may receive certain credits and benefits including, without limitation, checks, deposit slips, data processing and account services from or through various financial entities as a result of the banking relationships maintained in the regular course of its escrow and title insurance business. The undersigned hereby waive any and all rights or claims with respect to such credits and benefits received by the Escrow Agent or any a>filiates thereof. A good faith estimate of the benefits received by Escrow Agent is $32.16 (based on 2001 results) per escrow transaction. This disclosure is made in compliance with Oregon Administrative Rule 863-50-065. Any funds remaining on deposit after closing or refunds received by Escrow Agent will be refunded to the party whose account was charged. No further instructions will be required by any party prior to the disbursement of any such refund by Escrow Agent. Page 2 of 6 First American Title Insurance Company of Oregon File No.: 7034-1073204 (nt) Date: July 23, 2007 Escrow Agent will charge an accounting fee of $10.00 for each month any funds are held after one (1) month in the event the person(s) entitled to such funds, after reasonable and diligent effort, cannot be found. Escrow Agent may charge a reasonable fee for replacement and/or stale dated checks. Copies: The undersigned authorize distribution of these escrow instructions and/or estimated or final closing statements prepared on my behalf to any designee, real estate broker/agent or lender identified in this transaction. Closing: Closing is defined, for purposes of this agreement, as the time of the recording of all documents as required by the parties herein. Escrow Agent shall be entitled to payment of all fees charged for services provided at the time of closing. Any funds held for satisfaction/release of liens and encumbrances or to meet other conditions of this escrow may be transferred from this escrow account to an appropriate department or escrow for subsequent processing. AGREEMENTS Arbitration: Except as noted below, if any dispute or claim arises out of or relates to this escrow agreement, or to the interpretation or breach thereof, Escrow Agent may, at its election; a) hold all matters in its existing status pending resolution of such dispute or; b) it shall be resolved by arbitration in accordance with the then in effect rules of Arbitration Service of Portland, Inc., of the American Arbitration Association, whichever is selected by the party which first initiates arbitration, and any judgment rendered pursuant to such arbitration may be entered in any court having jurisdiction thereof. Interpleader: Escrow Agent shall have the option of interpleading funds in the Circuit Court of Oregon, including the Small Claims Division of same, as may be appropriate, in the event of a dispute regarding the disposition of any funds held by Escrow Agent. Attorney Fees: In the event suit or action is brought, or an arbitration proceeding is initiated, to enforce or interpret any of the provisions of this agreement, or which is based thereon, the prevailing party shall be entitled to reasonable attorney's fees in connection herewith. the determination of who are the prevailing party and the amount of reasonable attorney fees shall be decided by the arbitrator(s) or by the court as may be appropriate. Limited Power of Attorney: The undersigned hereby grant Escrow Agent Limited Power of Attorney to correct and initial all typographical or clerical errors discovered in any or all of the closing documentation required to be executed by any of the parties hereto. In the event Escrow Agent exercises this Limited power of Attorney, a copy of the document(s) corrected and/or initialed will be sent to the affected party. EXCLUSIONS COMPLIANCE WITH VARIOUS LAWS OR STATUTES: Escrow Agent has no liability or responsibility with respect to any matters connected with the following (unless expressly authorized herein or by separate written instructions acknowledged by Escrow Agent); 1. Compliance with the requirements of the Consumer Credit Protection Act or Interstate Land Sales Act, or similar laws; 2. Compliance with the requirements of the Oregon Revised Statutes 537.330 (relating to water rights), 537.788 (relating to well information), 448.271 (relating to well testing) and any similar laws; 3. Compliance with Oregon Laws 2001 Chapter 311 (relating to cautionary notice or other information as applicable regarding potential construction liens); 4. Compliance with the obligation to disclose the existence of lead based paint as required by federal regulation 24 CFR Part 35 and 40 CFR Part 35 et seq and any other related statute or regulation' 5. Compliance with collection, withholding, reporting or payment of any amounts due under Section 1445 and 6039C of the Internal Revenue Code, as amended, regulations adopted thereunder, and any other related statute or regulation (Foreign Investment in Real Property Tax Act, commonly referred to as Page 3 of 6 First American Title Insurance Company of Oregon File No.: 7034-1073204 (nt) Date: July 23, 2007 FIRPTA). Notwithstanding the fact Escrow Agent assumes no liability or responsibility to the parties for compliance with FIRPTA, Escrow Agent reserves the right to take any action required by such law and/or regulation without further instructions of the parties. REPRESENTATIONS Compliance with Earnest Money Agreement: All terms and provisions of the earnest money agreement, amendments or addenda thereto, have been complied with to the satisfaction of the undersigned or will be completed outside of this escrow. Escrow Agent is not responsible for any matters except as set forth in this agreement. Utilities: The undersigned acknowledge that water, sewer, waste collection, electricity, and other utility charges and inventory for fuel, including any final billings will be adjusted outside this escrow by the respective parties and Escrow Agent shall have no obligation or responsibility for such adjustment. Compliance with Escrow Agreement: The undersigned acknowledge that they have and shall have a continuing obligation to cooperate with Escrow Agent in good faith to enable Escrow Agent to fulfill its responsibilities under this agreement. Such obligations shall survive the closing of the transaction described herein and shall include, without limitation, the obligation to; a) disclose to Escrow Agent any liens, encumbrances or any other rights, claims or matters known to the parties which affect or relate to the property and transaction referred to in this agreement; b) return to Escrow Agent for proper disposition any funds, documents or other property which are, for any reason, improperly or mistakenly released to any persons; c) pay any charges, advances or expenses that are properly chargeable to the parties; and d) to proceed pursuant to the provisions of ORS 86.720 to take those steps necessary to secure an appropriate deed of reconveyance of any trust deed which has been paid and fully satisfied. Practice of Law/Advice: The undersigned acknowledge that Escrow Agent is not licensed to practice law and that Escrow Agent's duties and obligations under this agreement are limited to those of an escrow holder. The undersigned have not been referred to any named attorney(s) or discouraged from seeking the advice of an attorney but have been requested to seek legal counsel of their own choosing, at their own expense, if they have any doubts or questions concerning any aspect of this transaction. Other Obligations: The undersigned acknowledge that, to the extent other obligations exist between them as a result of this transaction that are not specifically set forth herein, they are individually responsible for the execution thereof and Escrow Agent is not obligated for matters except as specifically set forth in this agreement. Review: The undersigned acknowledge that they have been afforded adequate time and opportunity to read and understand the escrow instructions and all other documents referred to herein. SPECIAL INSTRUCTIONS PLEASE READ THE PRELIMINARY TITLE REPORT AND YOUR CLOSING STATEMENT CAREFULLY BEFORE SIGNING THIS DOCUMENT. BE SURE THAT ALL FACTS KNOWN TO YOU ARE ACCOUNTED FOR IN THIS ESCROW. THE ESCROW AGENT HEREIN IS A NEUTRAL THIRD PARTY AND CANNOT ADVISE YOU OR PROTECT YOUR LEGAL RIGHTS. YOU SHOULD CONSULT LEGAL COUNSEL FOR SUCH ADVICE AND PROTECTION. The undersigned has read the Preliminary Title Report and Estimated Closing Statement attached to the original Escrow Instructions, as well as the Escrow Instructions in this escrow, and any Amendments thereto. Page 4 of 6 First American Title Insurance Company of Oregon File No.: 7034-1073204 (nt) Date: July 23, 2007 The undersigned represents to First American Title Insurance Company of Oregon, that there are no existing liens, assessments, taxes, deferred taxes, unpaid water or sewer bills, or any other obligations which are the responsibility of the undersigned and which are not shown on the above documents. The undersigned understands and agrees that any obligation known to it and not disclosed herein, remains the responsibility of the undersigned subsequent to the closing of this escrow. The undersigned further understands and agrees that any payoffs made on its behalf in this escrow are made by First American Title Insurance Company of Oregon with complete reliance on figures supplied by the lender, creditor or taxing agency. Such figures may not be accurate. In the event that additional funds are required to complete said payoffs, the undersigned hereby agrees that it will immediately, upon request by First American Title Insurance Company of Oregon , provide the additional funds needed to complete said payoffs. THE PARTIES ACKNOWLEDGE THAT BY THE APPROVAL OF THE ESTIMATED CLOSING STATEMENT REFERRED TO BY THESE INSTRUCTIONS, THEY HAVE AGREED AS TO THE ALLOCATION OF COSTS ASSOCIATED WITH THE TITLE PREMIUMS REQUIRED, IF ANY, FOR THE PROTECTION REQUIRED FOR THE PURCHASER IN COMPLIANCE WITH HOMEBUYER PROTECTION ACT. Notwithstanding reference, if any, in applicable purchase and sale agreements regarding transfer of water rights, the parties acknowledge that Escrow Agent will not be responsible for any such transfer and that the parties are solely responsible for such transfer outside this escrow. YOU WILL BE REVIEWING, APPROVING AND SIGNING IMPORTANT DOCUMENTS AT CLOSING. LEGAL CONSEQUENCES FOLLOW FROM THE SELECTION AND USE OF THESE DOCUMENTS. THESE CONSEQUENCES AFFECT YOUR RIGHTS AND OBLIGATIONS. YOU MAY CONSULT AN ATTORNEY ABOUT THESE DOCUMENTS. YOU SHOULD CONSULT AN ATTORNEY IF YOU HAVE QUESTIONS OR CONCERNS ABOUT THE TRANSACTION OR ABOUT THE DOCUMENTS. IF YOU WISH TO REVIEW TRANSACTION DOCUMENTS THAT YOU HAVE NOT YET SEEN, PLEASE CONTACT THE ESCROW AGENT. IT IS UNDERSTOOD BY THE PARTIES SIGNING THE ABOVE ESCROW INSTRUCTIONS OR THOSE ESCROW INSTRUCTIONS WHICH ARE ATTACHED HERETO THAT SUCH INSTRUCTIONS CONSTITUTE THE WHOLE AGREEMENT BETWEEN THIS FIRM AS AN ESCROW AGENT AND YOU AS A PRINCIPAL TO THE ESCROW TRANSACTION. THESE INSTRUCTIONS MAY NOT INCLUDE ALL THE TERMS OF THE AGREEMENT WHICH IS THE SUBJECT OF THIS ESCROW. READ THESE INSTRUCTIONS CAREFULLY AND DO NOT SIGN THEM UNLESS THEY ARE ACCEPTABLE TO YOU. Dated: SELLER(S): BUYER(S): Ash Creek Properties LLC City of Tigard .~7 By: M. Dale Richards, Managing By: C*ig Prosser, City Manager Member Seller's Forwarding Address: Buyer's Forwarding Address: 126SS SW North Dakota Street 13125 SW Hall Blvd Tigard, OR 97223 Tigard, OR 97223 Page 5 of 6 First American Title Insurance Company of Oregon File No.: 7034-1073204 (nt) Date: July 23, 2007 The undersigned represents to First American Title Insurance Company of Oregon, that there are no existing liens, assessments, taxes, deferred taxes, unpaid water or sewer bills, or any other obligations which are the responsibility of the undersigned and which are not shown on the above documents. The undersigned understands and agrees that any obligation known to it and not disclosed herein, remains the responsibility of the undersigned subsequent to the closing of this escrow. The undersigned further understands and agrees that any payoffs made on its behalf in this escrow are made by First American Title Insurance Company of Oregon with complete reliance on figures supplied by the lender, creditor or taxing agency. Such figures may not be accurate. In the event that additional funds are required to complete said payoffs, the undersigned hereby agrees that it will immediately, upon request by First American Title Insurance Company of Oregon , provide the additional funds needed to complete said payoffs. THE PARTIES ACKNOWLEDGE THAT BY THE APPROVAL OF THE ESTIMATED CLOSING STATEMENT REFERRED TO BY THESE INSTRUCTIONS, THEY HAVE AGREED AS TO THE ALLOCATION OF COSTS ASSOCIATED WITH THE TITLE PREMIUMS REQUIRED, IF ANY, FOR THE PROTECTION REQUIRED FOR THE PURCHASER IN COMPLIANCE WITH HOMEBUYER PROTECTION ACT. Notwithstanding reference, if any, in applicable purchase and sale agreements regarding transfer of water rights, the parties acknowledge that Escrow Agent will not be responsible for any such transfer and that the parties are solely responsible for such transfer outside this escrow. YOU WILL BE REVIEWING, APPROVING AND SIGNING IMPORTANT DOCUMENTS AT CLOSING. LEGAL CONSEQUENCES FOLLOW FROM THE SELECTION AND USE OF THESE DOCUMENTS. THESE CONSEQUENCES AFFECT YOUR RIGHTS AND OBLIGATIONS. YOU MAY CONSULT AN ATTORNEY ABOUT THESE DOCUMENTS. YOU SHOULD CONSULT AN ATTORNEY IF YOU HAVE QUESTIONS OR CONCERNS ABOUT THE TRANSACTION OR ABOUT THE DOCUMENTS. IF YOU WISH TO REVIEW TRANSACTION DOCUMENTS THAT YOU HAVE NOT YET SEEN, PLEASE CONTACT THE ESCROW AGENT. IT IS UNDERSTOOD BY THE PARTIES SIGNING THE ABOVE ESCROW INSTRUCTIONS OR THOSE ESCROW INSTRUCTIONS WHICH ARE ATTACHED HERETO THAT SUCH INSTRUCTIONS CONSTITUTE THE WHOLE AGREEMENT BETWEEN THIS FIRM AS AN ESCROW AGENT AND YOU AS A PRINCIPAL TO THE ESCROW TRANSACTION. THESE INSTRUCTIONS MAY NOT INCLUDE ALL THE TERMS OF THE AGREEMENT WHICH IS THE SUBJECT OF THIS ESCROW. READ THESE INSTRUCTIONS CAREFULLY AND DO NOT SIGN THEM UNLESS THEY ARE ACCEPTABLE TO YOU. Dated: SELLER(S): BUYER(S): Ash Creek Properties LLC City of Tigard .91Y.-M. Dale Richards, Managing By: Dennis Koellermeier, Authorized Member Signor Seller's Forwarding Address: Buyer's Forwarding Address: 12655 SW North Dakota Street 13125 SW Hall Blvd Tigard, OR 97223 Tigard, OR 97223 Page 5 of 6 First American Title Insurance Company of Oregon File No.: 7034-1073204 (nt) Date: July 23, 2007 Accepted this ! ~ay of 20 L_.l First Ameri are-Title Insurance Compa. Oregon By, Page 6 of 6 . i k First American ate:=z>> 222 SW Columbia St Ste 400, Portland OR 97201 Tel: 5032223651 Fax: (503)-7907858 Washington Ilu~ll I IIIIIIII~I ~II ulllulllll * 2 5 5 6 7 8 9 Transmittal Order No: 1073204 Dated: 7/26/2007 Attention: City of Tigard 13125 SW Hall Blvd Tigard , OR 97223 Enclosed please find 1 attached documents. 7019 - Multnomah County - Portland - Title (BUID 1011) Page Count 10 Form No. 1402.06 Policy No.: 7034-1073204 ALTA Owner's Policy (6-17-06) 1100302PO50600 OWNER'S POLICY OF TITLE INSURANCE ISSUED BY First American Title Insurance Company Any notice of claim and any other notice or statement in writing required to be given to the Company under this policy must be given to the Company at the address shown in Section 18 of the Conditions. COVERED RISKS SUBJECT TO THE EXCLUSIONS FROM COVERAGE, THE EXCEPTIONS (c) the subdivision of land; or FROM COVERAGE CONTAINED IN SCHEDULE B AND THE (d) environmental protection CONDITIONS, FIRST AMERICAN TITLE INSURANCE COMPANY, a if a notice, describing any part of the Land, is recorded in the California corporation (the "Company") insures, as of Date of Policy Public Records setting forth the violation or intention to enforce, and, to the extent stated in Covered Risks 9 and 10, after Date of but only to the extent of the violation or enforcement referred to Policy, against loss or damage, not exceeding the Amount of in that notice. Insurance, sustained or incurred by the Insured by reason of: 6. An enforcement action based on the exercise of a governmental 1. Title being vested other than as stated in Schedule A. police power not covered by Covered Risk 5 if a notice of the 2. Any defect in or lien or encumbrance on the Title. This Covered enforcement action, describing any part of the Land, is recorded Risk includes but is not limited to insurance against loss from in the Public Records, but only to the extent of the enforcement (a) A defect in the Title caused by referred to in that notice. (i) forgery, fraud, undue influence, duress, incompetency, 7. The exercise of the rights of eminent domain if a notice of the incapacity, or impersonation; exercise, describing any part of the Land, is recorded in the (ii) failure of any person or Entity to have authorized a Public Records. transfer or conveyance; 8. Any taking by a governmental body that has occurred and is (iii) a document affecting Title not properly created, binding on the rights of a purchaser for value without Knowledge. executed, witnessed, sealed, acknowledged, notarized, or 9. Title being vested other than as stated in Schedule A or being delivered; defective (iv) failure to perform those acts necessary to create a (a) as a result of the avoidance in whole or in part, or from a document by electronic means authorized by law; court order providing an alternative remedy, of a transfer of (v) a document executed under a falsified, expired, or all or any part of the title to or any interest in the Land otherwise invalid power of attorney; occurring prior to the transaction vesting Title as shown in (vi) a document not properly filed, recorded, or indexed in Schedule A because that prior transfer constituted a the Public Records including failure to perform those acts fraudulent or preferential transfer under federal bankruptcy, by electronic means authorized by law; or state insolvency, or similar creditors' rights laws; or (vii) a defective judicial or administrative proceeding. (b) because the instrument of transfer vesting Title as shown in (b) The lien of real estate taxes or assessments imposed on the Schedule A constitutes a preferential transfer under federal Title by a governmental authority due or payable, but unpaid. bankruptcy, state insolvency, or similar creditors' rights laws (c) Any encroachment, encumbrance, violation, variation, or by reason of the failure of its recording in the Public Records adverse circumstance affecting the Title that would be (i) to be timely, or disclosed by an accurate and complete land survey of the (ii) to impart notice of its existence to a purchaser for value Land. The term "encroachment" includes encroachments of or to a judgment or lien creditor. existing improvements located on the Land onto adjoining 10. Any defect in or lien or encumbrance on the Title or other matter land, and encroachments onto the Land of existing included in Covered Risks 1 through 9 that has been created or improvements located on adjoining land. attached or has been filed or recorded in the Public Records 3. Unmarketable Title. subsequent to Date of Policy and prior to the recording of the 4. No right of access to and from the Land. deed or other instrument of transfer in the Public Records that 5. The violation or enforcement of any law, ordinance, permit, or vests Title as shown in Schedule A. governmental regulation (including those relating to building and zoning) restricting, regulating, prohibiting, or relating to The Company will also pay the costs, attorneys' fees, and expenses (a) the occupancy, use, or enjoyment of the Land; incurred in defense of any matter insured against by this policy, but (b) the character, dimensions, or location of any improvement only to the extent provided in the Conditions. erected on the Land; Tit/e Insurance Company of Oregon dba FIRST AMERICAN TITLE INSURANCE COMPANY OF OREGON BY., FS ",gP9y~''~ President Attest' . Secretary 1111f o Form No. 1402.06 Policy Page 2 • ALTA Owner's Policy (6-17-06) Policy Number: 1073204 EXCLUSIONS FROM COVERAGE (ii) With regard to (A), (B), (C), and (D) reserving, however, all rights The following matters are expressly excluded from the coverage of this policy, and and defenses as to any successor that the Company would have had the Company will not pay loss or damage, costs, attorneys' fees, or expenses that against any predecessor Insured. arise by reason of: (e) "Insured Claimant": An Insured claiming loss or damage. 1. (a) Any law, ordinance, permit, or governmental regulation (including those (f) "Knowledge" or "Known": Actual knowledge, not constructive knowledge relating to building and zoning) restricting, regulating, prohibiting, or or notice that may be imputed to an Insured by reason of the Public relating to Records or any other records that impart constructive notice of matters (i) the occupancy, use, or enjoyment of the Land; affecting the Title. (ii) the character, dimensions, or location of any improvement erected on (g) "Land": The land described in Schedule A, and affixed improvements that the Land; by law constitute real property. The term "Land" does not include any (iii) the subdivision of land; or property beyond the lines of the area described in Schedule A, nor any (iv) environmental protection; right, title, interest, estate, or easement in abutting streets, roads, or the effect of any violation of these laws, ordinances, or governmental avenues, alleys, lanes, ways, or waterways, but this does not modify or regulations. This Exclusion 1(a) does not modify or limit the coverage provided limit the extent that a right of access to and from the Land is insured by under Covered Risk 5. this policy. (b) Any governmental police power. This Exclusion 1(b) does not modify or (h) "Mortgage": Mortgage, deed of trust, trust deed, or other security limit the coverage provided under Covered Risk 6. instrument, including one evidenced by electronic means authorized by 2. Rights of eminent domain. This Exclusion does not modify or limit the law. coverage provided under Covered Risk 7 or 8. (i) "Public Records": Records established under state statutes at Date of 3. Defects, liens, encumbrances, adverse claims, or other matters Policy for the purpose of imparting constructive notice of matters relating (a) created, suffered, assumed, or agreed to by the Insured Claimant; to real property to purchasers for value and without Knowledge. With (b) not Known to the Company, not recorded in the Public Records at Date of respect to Covered Risk 5(d), "Public Records" shall also include Polity, but Known to the Insured Claimant and not disclosed in writing to environmental protection liens filed in the records of the clerk of the the Company by the Insured Claimant prior to the date the Insured United States District Court for the district where the Land is located. Claimant became an Insured under this policy; (j) "Title": The estate or interest described in Schedule A. (c) resulting in no loss or damage to the Insured Claimant; (k) "Unmarketable Title": Title affected by an alleged or apparent matter that (d) attaching or created subsequent to Date of Policy (however, this does not would permit a prospective purchaser or lessee of the Title or lender on modify or limit the coverage provided under Covered Risks 9 and 10); or the Title to be released from the obligation to purchase, lease, or lend if (e) resulting in loss or damage that would not have been sustained if the there is a contractual condition requiring the delivery of marketable title. Insured Claimant had paid value for the Title. 4. Any claim, by reason of the operation of federal bankruptcy, state insolvency, 2. CONTINUATION OF INSURANCE or similar creditors' rights laws, that the transaction vesting the Title as shown The coverage of this policy shall continue in force as of Date of Policy in favor in Schedule A, is of an Insured, but only so long as the Insured retains an estate or interest in the (a) a fraudulent conveyance or fraudulent transfer; or Land, or holds an obligation secured by a purchase money Mortgage given by a (b) a preferential transfer for any reason not stated in Covered Risk 9 of this purchaser from the Insured, or only so long as the Insured shall have liability by policy. reason of warranties in any transfer or conveyance of the Title. This policy shall not 5. Any lien on the Title for real estate taxes or assessments imposed by continue in force in favor of any purchaser from the Insured of either (i) an estate governmental authority and created or attaching between Date of Policy and or interest in the Land, or (ii) an obligation secured by a purchase money Mortgage the date of recording of the deed or other instrument of transfer in the Public given to the Insured. Records that vests Title as shown in Schedule A. 3. NOTICE OF CLAIM TO BE GIVEN BY INSURED CLAIMANT CONDITIONS The Insured shall notify the Company promptly in writing (i) in case of any 1. DEFINITION OF TERMS litigation as set forth in Section 5(a) of these Conditions, (ii) in case Knowledge The following terms when used in this policy mean: shall come to an Insured hereunder of any claim of title or interest that is adverse (a) "Amount of Insurance": The amount stated in Schedule A, as may be to the Title, as insured, and that might cause loss or damage for which the increased or decreased by endorsement to this policy, increased by Company may be liable by virtue of this policy, or (iii) if the Title, as insured, is Section 8(b), or decreased by Sections 10 and 11 of these Conditions. rejected as Unmarketable Title. If the Company is prejudiced by the failure of the (b) "Date of Policy": The date designated as "Date of Policy" in Schedule A. Insured Claimant to provide prompt notice, the Company's liability to the Insured (c) "Entity": A corporation, partnership, trust, limited liability company, or Claimant under the policy shall be reduced to the extent of the prejudice. other similar legal entity. (d) "Insured": The Insured named in Schedule A. 4. PROOF OF LOSS (i) The term "Insured" also includes In the event the Company is unable to determine the amount of loss or (A) successors to the Title of the Insured by operation of law as damage, the Company may, at its option, require as a condition of payment that distinguished from purchase, including heirs, devisees, survivors, the Insured Claimant furnish a signed proof of loss. The proof of loss must describe personal representatives, or next of kin; the defect, lien, encumbrance, or other matter insured against by this policy that (B) successors to an Insured by dissolution, merger, consolidation, constitutes the basis of loss or damage and shall state, to the extent possible, the distribution, or reorganization; basis of calculating the amount of the loss or damage. (C) successors to an Insured by its conversion to another kind of Entity; S. DEFENSE AND PROSECUTION OF ACTIONS (D) a grantee of an Insured under a deed delivered without (a) Upon written request by the Insured, and subject to the options contained payment of actual valuable consideration conveying the Title in Section 7 of these Conditions, the Company, at its own cost and without (1) if the stock, shares, memberships, or other equity interests unreasonable delay, shall provide for the defense of an Insured in of the grantee are wholly-owned by the named Insured, litigation in which any third party asserts a claim covered by this policy (2) if the grantee wholly owns the named Insured, adverse to the Insured. This obligation is limited to only those stated (3) if the grantee is wholly-owned by an affiliated Entity of the causes of action alleging matters insured against by this policy. The named Insured, provided the affiliated Entity and the Company shall have the right to select counsel of its choice (subject to the named Insured are both wholly-owned by the same person right of the Insured to object for reasonable cause) to represent the or Entity, or Insured as to those stated causes of action. It shall not be liable for and (4) if the grantee is a trustee or beneficiary of a trust created will not pay the fees of any other counsel. The Company will not pay any by a written instrument established by the Insured named fees, costs, or expenses incurred by the Insured in the defense of those in Schedule A for estate planning purposes. causes of action that allege matters not insured against by this policy. (b) The Company shall have the right, in addition to the options contained in First American Title Insurance Company of Oregon Form No. 1402.06 Policy Page 3 ALTA Owner's Policy (6-17-06) Policy Number: 1073204 Section 7 of these Conditions, at its own cost, to institute and prosecute attorneys' fees, and expenses incurred by the Insured Claimant that were any action or proceeding or to do any other act that in its opinion may be authorized by the Company up to the time of payment and that the necessary or desirable to establish the Title, as insured, or to prevent or Company is obligated to pay. reduce loss or damage to the Insured. The Company may take any Upon the exercise by the Company of either of the options provided for in appropriate action under the terms of this policy, whether or not it shall subsections (b)(i) or (ii), the Company's obligations to the Insured under this be liable to the Insured. The exercise of these rights shall not be an policy for the claimed loss or damage, other than the payments required to be admission of liability or waiver of any provision of this policy. If the made, shall terminate, including any liability or obligation to defend, prosecute, Company exercises its rights under this subsection, it must do so or continue any litigation. diligently. (c) Whenever the Company brings an action or asserts a defense as required 8. DETERMINATION AND EXTENT OF LIABILITY or permitted by this policy, the Company may pursue the litigation to a This policy is a contract of indemnity against actual monetary loss or damage final determination by a court of competent jurisdiction, and it expressly sustained or incurred by the Insured Claimant who has suffered loss or damage by reserves the right, in its sole discretion, to appeal any adverse judgment reason of matters insured against by this policy. or order. (a) The extent of liability of the Company for loss or damage under this policy shall not exceed the lesser of 6. DUTY OF INSURED CLAIMANT TO COOPERATE (i) the Amount of Insurance; or (a) In all cases where this policy permits or requires the Company to (ii) the difference between the value of the Title as insured and the value prosecute or provide for the defense of any action or proceeding and any of the Title subject to the risk insured against by this policy. appeals, the Insured shall secure to the Company the right to so (b) If the Company pursues its rights under Section 5 of these Conditions and prosecute or provide defense in the action or proceeding, including the is unsuccessful in establishing the Title, as insured, right to use, at its option, the name of the Insured for this purpose. (i) the Amount of Insurance shall be increased by 10%, and Whenever requested by the Company, the Insured, at the Company's (ii) the Insured Claimant shall have the right to have the loss or damage expense, shall give the Company all reasonable aid (i) in securing determined either as of the date the claim was made by the Insured evidence, obtaining witnesses, prosecuting or defending the action or Claimant or as of the date it is settled and paid. proceeding, or effecting settlement, and (ii) in any other lawful act that in (c) In addition to the extent of liability under (a) and (b), the Company will the opinion of the Company may be necessary or desirable to establish also pay those costs, attorneys' fees, and expenses incurred in accordance the Title or any other matter as insured. If the Company is prejudiced by with Sections 5 and 7 of these Conditions. the failure of the Insured to furnish the required cooperation, the Company's obligations to the Insured under the policy shall terminate, 9. LIMITATION OF LIABILITY including any liability or obligation to defend, prosecute, or continue any (a) If the Company establishes the Title, or removes the alleged defect, lien, litigation, with regard to the matter or matters requiring such or encumbrance, or cures the lack of a right of access to or from the cooperation. Land, or cures the claim of Unmarketable Title, all as insured, in a (b) The Company may reasonably require the Insured Claimant to submit to reasonably diligent manner by any method, including litigation and the examination under oath by any authorized representative of the Company completion of any appeals, it shall have fully performed its obligations and to produce for examination, inspection, and copying, at such with respect to that matter and shall not be liable for any loss or damage reasonable times and places as may be designated by the authorized caused to the Insured. representative of the Company, all records, in whatever medium (b) In the event of any litigation, including litigation by the Company or with maintained, including books, ledgers, checks, memoranda, the Company's consent, the Company shall have no liability for loss or correspondence, reports, e-mails, disks, tapes, and videos whether damage until there has been a final determination by a court of bearing a date before or after Date of Policy, that reasonably pertain to competent jurisdiction, and disposition of all appeals, adverse to the Title, the loss or damage. Further, if requested by any authorized as insured. representative of the Company, the Insured Claimant shall grant its (c) The Company shall not be liable for loss or damage to the Insured for permission, in writing, for any authorized representative of the Company liability voluntarily assumed by the Insured in settling any claim or suit to examine, inspect, and copy all of these records in the custody or without the prior written consent of the Company. control of a third party that reasonably pertain to the loss or damage. All information designated as confidential by the Insured Claimant provided 10. REDUCTION OF INSURANCE; REDUCTION OR TERMINATION OF to the Company pursuant to this Section shall not be disclosed to others LIABILITY unless, in the reasonable judgment of the Company, it is necessary in the All payments under this policy, except payments made for costs, attorneys' administration of the claim. Failure of the Insured Claimant to submit for fees, and expenses, shall reduce the Amount of Insurance by the amount of the examination under oath, produce any reasonably requested information, payment. or grant permission to secure reasonably necessary information from third parties as required in this subsection, unless prohibited by law or 11. LIABILITY NONCUMULATIVE governmental regulation, shall terminate any liability of the Company The Amount of Insurance shall be reduced by any amount the Company pays under this policy as to that claim. under any policy insuring a Mortgage to which exception is taken in Schedule B or to which the Insured has agreed, assumed, or taken subject, or which is executed 7. OPTIONS TO PAY OR OTHERWISE SETTLE CLAIMS; TERMINATION by an Insured after Date of Policy and which is a charge or lien on the Title, and OF LIABILITY the amount so paid shall be deemed a payment to the Insured under this policy. In case of a claim under this policy, the Company shall have the following additional options: 12. PAYMENT OF LOSS (a) To Pay or Tender Payment of the Amount of Insurance. When liability and the extent of loss or damage have been definitely fixed in To pay or tender payment of the Amount of Insurance under this policy accordance with these Conditions, the payment shall be made within 30 days. together with any costs, attorneys' fees, and expenses incurred by the Insured Claimant that were authorized by the Company up to the time of 13. RIGHTS OF RECOVERY UPON PAYMENT OR SETTLEMENT payment or tender of payment and that the Company is obligated to pay. (a) Whenever the Company shall have settled and paid a claim under this Upon the exercise by the Company of this option, all liability and policy, it shall be subrogated and entitled to the rights of the Insured obligations of the Company to the Insured under this policy, other than to Claimant in the Title and all other rights and remedies in respect to the make the payment required in this subsection, shall terminate, including claim that the Insured Claimant has against any person or property, to the any liability or obligation to defend, prosecute, or continue any litigation. extent of the amount of any loss, costs, attorneys' fees, and expenses (b) To Pay or Otherwise Settle With Parties Other Than the Insured or With paid by the Company. If requested by the Company, the Insured Claimant the Insured Claimant. shall execute documents to evidence the transfer to the Company of these (i) To pay or otherwise settle with other parties for or in the name of an rights and remedies. The Insured Claimant shall permit the Company to Insured Claimant any claim insured against under this policy. In sue, compromise, or settle in the name of the Insured Claimant and to addition, the Company will pay any costs, attorneys' fees, and use the name of the Insured Claimant in any transaction or litigation expenses incurred by the Insured Claimant that were authorized by involving these rights and remedies. the Company up to the time of payment and that the Company is If a payment on account of a claim does not fully cover the loss of the obligated to pay; or Insured Claimant, the Company shall defer the exercise of its right to (ii) To pay or otherwise settle with the Insured Claimant the loss or recover until after the Insured Claimant shall have recovered its loss. damage provided for under this policy, together with any costs, First American Title Insurance Company of Oregon Form No. 1402.06 Policy Page 4 ALTA Owner's Policy (6-17-06) Policy Number: 1073204 (b) The Company's right of subrogation includes the rights of the Insured to (d) Each endorsement to this policy issued at any time is made a part of this indemnities, guaranties, other policies of insurance, or bonds, policy and is subject to all of its terms and provisions. Except as the notwithstanding any terms or conditions contained in those instruments endorsement expressly states, it does not (i) modify any of the terms and that address subrogation rights. provisions of the policy, (ii) modify any prior endorsement, (iii) extend the Date of Policy, or (iv) increase the Amount of Insurance. 14. ARBITRATION Either the Company or the Insured may demand that the claim or controversy 16. SEVERABILITY shall be submitted to arbitration pursuant to the Title Insurance Arbitration Rules of In the event any provision of this policy, in whole or in part, is held invalid or the American Land Title Association ("Rules"). Except as provided in the Rules, unenforceable under applicable law, the policy shall be deemed not to include that there shall be no joinder or consolidation with claims or controversies of other provision or such part held to be invalid, but all other provisions shall remain in full persons. Arbitrable matters may include, but are not limited to, any controversy or force and effect. claim between the Company and the Insured arising out of or relating to this policy, any service in connection with its issuance or the breach of a policy 17. CHOICE OF LAW; FORUM provision, or to any other controversy or claim arising out of the transaction giving (a) Choice of Law: The Insured acknowledges the Company has underwritten rise to this policy. All arbitrable matters when the Amount of Insurance is the risks covered by this policy and determined the premium charged $2,000,000 or less shall be arbitrated at the option of either the Company or the therefor in reliance upon the law affecting interests in real property and Insured. All arbitrable matters when the Amount of Insurance is in excess of applicable to the interpretation, rights, remedies, or enforcement of $2,000,000 shall be arbitrated only when agreed to by both the Company and the policies of title insurance of the jurisdiction where the Land is located. Insured. Arbitration pursuant to this policy and under the Rules shall be binding Therefore, the court or an arbitrator shall apply the law of the jurisdiction upon the parties. Judgment upon the award rendered by the Arbitrator(s) may be where the Land is located to determine the validity of claims against the entered in any court of competent jurisdiction. Title that are adverse to the Insured and to interpret and enforce the terms of this policy. In neither case shall the court or arbitrator apply its 1S. LIABILITY LIMITED TO THIS POLICY; POLICY ENTIRE CONTRACT conflicts of law principles to determine the applicable law. (a) This policy together with all endorsements, if any, attached to it by the (b) Choice of Forum: Any litigation or other proceeding brought by the Company is the entire policy and contract between the Insured and the Insured against the Company must be filed only in a state or federal court Company. In interpreting any provision of this policy, this policy shall be within the United States of America or its territories having appropriate construed as a whole. jurisdiction. (b) Any claim of loss or damage that arises out of the status of the Title or by any action asserting such claim shall be restricted to this policy. 18. NOTICES, WHERE SENT (c) Any amendment of or endorsement to this policy must be in writing and Any notice of claim and any other notice or statement in writing required to be authenticated by an authorized person, or expressly incorporated by given to the Company under this policy must be given to the Company at 1 First Schedule A of this policy. American Way, Santa Ana, CA 92707, Attn: Claims Department. POLICY OF TITLE INSURANCE ( A W, E 1 4 ~ n, a ri~ First American Title Insurance Company of Oregon Form No. 1402.06 Policy Page 5 ALTA Owner's Policy (6-17-06) Policy Number: 1073204 SCHEDULE A First American Title Insurance Company of Oregon Name and Address of Title Insurance Company: First American Title Insurance Company of Oregon 222 SW Columbia Street, Suite 400 Portland, OR 97201 File No.: 7034-1073204 Policy No.: 1073204 Address Reference: 9750 SW 74th Avenue, Tigard, OR 97223 Amount of Insurance: $345,000.00 Premium: $676.00 Date of Policy: July 24, 2007 at 3:25 p.m. 1. Name of Insured: City of Tigard 2. The estate or interest in the Land that is insured by this policy is: Fee Simple 3. Title is vested in: City of Tigard 4. The Land referred to in this policy is described as follows: See Exhibit "A" attached hereto and made a part hereof First American Title Insurance Company of Oregon Form No. 1402.06 Policy Page 6 ALTA Owner's Policy (6-17-06) Policy Number: 1073204 SCHEDULE B File No.: 7034-1073204 Policy No.: 1073204 EXCEPTIONS FROM COVERAGE This Policy does not insure against loss or damage, and the Company will not pay costs, attorneys' fees, or expenses that arise by reason of: 1. Taxes or assessments which are not shown as existing liens by the records of any taxing authority that levies taxes or assessments on real property or by the public records; proceedings by a public agency which may result in taxes or assessments, or notices of such proceedings, whether or not shown by the records of such agency or by the public records. 2. Facts, rights, interests or claims which are not shown by the public records but which could be ascertained by an inspection of the land or by making inquiry of persons in possession thereof. 3. Easements, or claims or easement, not shown by the public records; reservations or exceptions in patents or in Acts authorizing the issuance thereof; water rights, claims or title to water. 4. Any encroachment (of existing improvements located on the subject land onto adjoining land or of existing improvements located on adjoining land onto the subject land), encumbrance, violation, variation, or adverse circumstance affecting the title that would be disclosed by an accurate and complete land survey of the subject land. 5. Any lien, or right to a lien, for services, labor, material, equipment rental or workers compensation heretofore or hereafter furnished, imposed by law and not shown by the public records. 6. Taxes for the fiscal year 2007-2008 a lien due, but not yet payable. 7. These premises are within the boundaries of the Tualatin Valley Water District and are subject to the levies and assessments thereof. 8. Statutory powers and assessments of Clean Water Services. 9. The rights of the public in and to that portion of the premises herein described lying within the limits of streets, roads and highways. 10. Conditions, restrictions and easement contained in final judgment entered March 18, 1966, in Suit No. 27-109, State Circuit Court for Washington County, Oregon, entitled Metzger Sanitary District vs. Ernest E. Senn and Elda H. Senn. 11. Restrictions shown on the recorded plat/partition of Ash Creek Estates. 12. Tree Restrictive Covenant and Deed Restriction, including terms and provisions thereof. Recorded: June 28, 2007 as Fee No. 2007-072139 First American Title Insurance Company of Oregon Form No. 1402.06 Policy Page 7 ALTA Owner's Policy (6-17-06) Policy Number: 1073204 13. Covenants, conditions, restrictions and/or easements; but deleting any covenant, condition or • restriction indicating a preference, limitation or discrimination based on race, color, religion, sex, handicap, family status, or national origin to the extent such covenants, conditions or restrictions violate Title 42, Section 3604(c), of the United States Codes: Recording Information: June 28, 2007 as Fee No. 2007-072140 14. Regulations and Assessments of Ash Creek Estates Homeowner's Association, as set forth in Declaration recorded June 28, 2007 as Fee No. 2007-072140. 15. Easement as shown on the recorded plat/partition For: 8.00 foot public utility Affects: Street frontages 16. Easement as shown on the recorded plat/partition For: Access for benefit of Lot 28 Affects: Lot 29 17. Easement as shown on the recorded plat/partition For: Storm sewer Affects: Lot 28 18. Restrictions shown on the recorded plat/partition of 'There shall be no direct motor vehicle access to or from Lot 28 onto SW 74th Avenue unless authorized by the governing body havign jurisdiction of said road.. First American Title Insurance Company of Oregon Form No. 1402.06 Policy Page 8 ALTA Owner's Policy (6-17-06) Policy Number: 1073204 e EXHIBIT "A" File No.: 7034-1073204 Policy No.: 1073204 Real property in the City of Tigard, County of Washington, State of Oregon, described as follows: Lots 28 and 29, ASH CREEK ESTATES, in the City of Tigard, County of Washington and State of Oregon; APN:R0231920 First American Title Insurance Company of Oregon Form No. 1402.06 Policy Page 9 ALTA Owner's Policy (6-17-06) Policy Number: 1073204 I ' First American Title Insurance Company of Oregon First l~ AmericCl sin 222 SW Columbia Street, Suite 400 Portland, OR 97201 Phn - (503)222-3651 Y z Fax - (503)790-7858 July 26, 2007 City of Tigard 13125 SW Hall Blvd Tigard, OR 97223 Order Number: 7034-1073204 (SRD) Title Officer: Sarah Doolittle Phone: (800)929-3651 Fax No.: E-Mail: sdoolitde@firstam.com Escrow Officer: Nicola Timm Phone: (503)244-8323 Fax No.: (866)734-1403 E-Mail: ntimm@firstam.com Property: 9750 SW 74th Avenue Tigard, Oregon 97223 We enclose the following: Owner's Policy Thank you for your confidence and support. We at First American Title Insurance Company of Oregon maintain the fundamental principle: Customer First. First American Title Insurance Company of Oregon