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Title Insurance Mirabeau ParkPrepared for: ANSNATION 'TITLE INSURANCE COMPANY 105 W. 3RD SPOKANE, WASHINGTON 99201 (509) 922 -2222 227 -6511 Fax (509) 926 -1519 CITY OF SPOKANE VALLEY ATTN: BILL 11707 E. SPRAGUE - STE. 106 Michelle Erwin, Title Officer merwin @landam.com RE: Order No.: ME- 259383 Customer Ref: P.O. 3075 /MIRABEAU POINT PARK SCHEDULE A EFFECTIVE DATE: March 17, 2003 at 8:00 A.M. 1. Policy or policies to be issued: Amount 2. 3. (a) ALTA Owner's Policy $100,000.00 Premium $500.00 Tax exempt (Standard) Proposed Insured: CITY OF SPOKANE VALLEY, a municipal corporation. Title to fee simple estate or interest in said land is at the effective date hereof vested in: SPOKANE COUNTY PARKS, as to Parcels A, B and C, per Statutory Warranty Deed recorded October 11, 2000 under Recording No. 4523651 and being a correction of deed recorded April 19, 2000 under Recording No. 4473173 and SPOKANE COUNTY, a municipal corporation, as to Parcel D, per Quit Claim Deed recorded November 15, 2002 under Recording No. 4802840. The land referred to in this Commitment is situated in the County of Spokane, State of Washington, and described as follows: See Legal Description Page 1 of 12 LEGAL DESCRIPTION PARCEL A• Order No. ME- 259383 A portion of the Northeast quarter of Section 10, Township 25 North, Range 44 East, W.M., being more particularly described as follows: The Northerly 300.00 feet of the Northeast quarter of said Section 10, as measured at right angles to the Northerly line of the Northeast quarter of said Section 10, lying Southwesterly of the Southwesterly right of way line of Mirabeau Parkway as delineated on CRP 2762 as filed in the Office of the Spokane County Engineering Department; EXCEPT the Northerly 300.00 feet of the Westerly 200.00 feet of the Northwest quarter of the Northeast quarter of said Section 10, as measured at right angles to the Northerly and Westerly line of said Northeast quarter of said Section 10; Situate in the County of Spokane, State of Washington. (Parcel No. 45101.9067 ptn NE 10- 25 -44) PARCEL-­B--:-1 ARCEL B• A portion of the Northeast quarter of Section 10, Township 25 North, Range 44 East, W.M., being more particularly described as follows: BEING the Northerly 300.00 feet of the Northeast quarter of said Section 10, as measured at right angles to the Northerly line of the Northeast quarter of said Section 10 lying Easterly of the Easterly right of way line of Mirabeau Parkway as delineated on CRP 2762 as filed in the Office of the Spokane County Engineering Department and Westerly of the Westerly right of way line of the Inland Empire Paper Company Railway; Situate in the County of Spokane, State of Washington. (Parcel No. 45101.9068 ptn NE 10- 25 -44) PARCEL C• Part of the Southeast quarter of Section 10, Township 25 North, Range 44 East, W.M., and being more particularly described as follows: legal cont. Page 2 of 12 Order No. ME- 259383 legal cont. COMMENCING at the East quarter corner of said section; thence North 89 056111" West, along the North line of said quarter section 1663.19 feet of the East right of way line of Discovery Place; thence South 00 011133" West, along said right of way line 212.19 feet to the point of beginning; thence South 8905611111 East, 519.56 feet to the Westerly right of way line of Mirabeau Parkway; thence South 41 056108" West, along said right of way line, 403.74 feet to a tangent curve to the right, the radius of which bears North 48 003152" West, a distance of 27.50 feet, through a central angle of 84 059141" an arc distance of 40.79 feet, to the North right of way line of Mansfield Avenue and the beginning curve to the left, the radius of which bears 36 05514811, a distance of 227.00 feet; thence along said right of way line and said curve to the left, through a central angle of 36 05115911, an arc distance of 146.06 feet to a point of tagency; thence North 89 056111" West, 49.82 feet to a tangent curve to the right, the radius of which bears North 00 003149" East, a distance of 27.50 feet, through a central angle of 90 00714411, an arc distance of 43.26 feet, to the East right of way line of Discovery Place; thence North 0001113311 East, along said line 231.33 feet to the Point of Beginning; Situate in the County of Spokane, State of Washington. (Parcel No. 45104.9071 ptn SE 10- 25 -44) PARCEL D• That portion of the East half of Section 10, Township 25 North, Range 44 East, W.M., described as follows: COMMENCING at the East quarter corner of said Section 10; thence North 89 056.11" West, along the centerline of said Section 10, 1013.95 feet to the Westerly right of way line of Mirabeau Parkway the Point of Beginning of this description; said Point of Beginning being on a curve to the right the radius of which bears North 69 010122" West, a distance of 673.00 feet; thence along said Westerly right of way line and curve to the left, through a central angle of 21 00613011, an arc distance of 247.94 feet to a point to tangency; thence South 41 056108" West, along said Westerly right of way line, 3.18 feet; thence North 89 056111" West, 519.45 feet, to the Easterly right of way line of Discovery Place; thence along the Easterly and Northerly right of way line of Discovery Place the following 5 courses: 1) North 0001113311 East, 323.56 feet, to the beginning of a curve to the right the radius of which bears South 89 048127" East, a distance of 673.00 feet; 2) along said curve to the right, through a central angle of legal cont. Page 3 of 12 Order No. ME- 259383 legal cont. 27 052'08 ", an arc distance of 327.35 feet to the beginning of a curve to the right the radius of which bears South 6105611911 East, a distance of 37.50 feet; 3) along said curve to the right through a central angle of 2402811711, an arc distance of 16.02 feet to a point of tangency; 4) North 52 031158" East, 75.56 feet, to the beginning of a curve to the left the radius of which bears North 37 028102" West, a distance of 62.50 feet; 5) along said curve to the left, through a central angle of 201 1129'4211, an arc distance of 219.80 feet to the Easterly line of the YMCA property; thence North 25 022'25" West, along said Easterly line, 249.28 feet to the Northeast corner of the YMCA property; thence North 89 056111" West, along the North line of the YMCA property; 740.00 feet to the East line of the West 200.00 feet of the Northeast quarter of said Section 10; thence North 00 006127" East, along said East line 1560.16 feet to the South line of the North 300.00 feet of the Northeast quarter of said Section 10; thence South 89 027133" East, along said South line, 693.58 feet to the Westerly right of way line of Mirabeau Parkway; thence along the Westerly right of way line of Mirabeau Parkway the following 8 courses: 1) along a curve to the right the radius of which bears South 56 054122" West, a distance of 673.00 feet, through a central angle of 17 °12'18", an arc distance of 202.09 feet to a point of tangency; 2) South 15 053121" East, 463.38 feet, to the beginning of a curve to the left the radius of which bears North 74 006139" East, a distance of 727.00 feet; 3) along said curve to the left, through a central angle of 08 00911111, an arc distance of 103.45 feet to a point of tangency; 4) South 24 002132" East, 255.31 feet, to the beginning of a curve to the right the radius of which bears South 65 057128" West, a distance of 673.00 feet; 5) along said curve to the right, through a central angle of 20 02910311, an arc distance of 240.61 feet to the beginning of a curve to the left the radius of which bears North 86 026131" East, a distance of 727.00 feet; 6) along said curve to the left through a central angle of 38 03610811, an arc distance of 489.81 feet to a point of tangency; 7) South 42 009136" East, 26.61 feet to the beginning of a curve to the right the radius of which bears South 47 050124" West, a distance of 673.00 feet; 8) along said curve to the right, through a central angle of 62 05911411, an arc distance of 739.85 feet to the Point of Beginning of this description; legal cont. Page 4 of 12 legal cont. Order No. ME- 259383 EXCEPT that portion conveyed to Spokane County for Discovery Place, Road Rile No. 2666 by deed under Auditor's File No. 447291; Situate in the,County of Spokane, State of Washington. END OF SCHEDULE "A" THE FOLLOWING INFORMATION IS PROVIDED FOR CONVENIENCE ONLY: (Parcel No. 45105.9096) [Abbreviated Description: PTN. E1 /2 10- 25 -441 Page 5 of 12 Order No. ME- 259383 SCHEDULE B REQUIREMENTS. Instruments necessary to create the estate or interest to be insured must be properly executed, delivered and duly filed for record. EXCEPTIONS. Schedule B of the policy or policies to be issued will contain exceptions to the following matters unless the same are disposed of to the satisfaction of the Company. A. Defects, liens, encumbrances, adverse claims or other matters, if any, created, first appearing in the public records or attaching subsequent to the effective date hereof but prior to the date the proposed Insured acquires for value of record the estate or interest or mortgage thereon covered by this Commitment. B. Standard exceptions set forth in inside of back cover. C. Special exceptions: 1. Real Estate Excise Tax pursuant to the authority of RCW Chapter 82.45 and subsequent amendments thereto. As of the date herein, the tax rate for said property is 1.78 %. 2. General taxes, as follows, together with interest, penalty and statutory foreclosure costs, if any, after delinquency: (1st half delinquent on May 1; 2nd half delinquent on November 1) Tax Account No. Year Amount Billed Amount Paid Principal Balance 45101.9067 2003 $25,498.37 $00.00 $25,498.37 (Affects Parcel A) 45101.9068 2003 $8,822.30 $00.00 $8,822.30 (Affects Parcel B) 45104.9071 2003 $14.00 $00.00 $14.00 (Affects Parcel C) 45105.9096 2003 $749.87 $00.00 $749.87 (Affects Parcel D) (The above taxes include Aquifer Protection and Stormwater fees) 3. The land herein described is carried on the tax rolls as exempt, however, it will become taxable from the date of execution of a conveyance to a taxable entity and subject to the lien of real property taxes for the balance of the year 2003. Tax Account No.: 45101.9067; 45101.9068; 45104.9071; 45105.9096 Page 6 of 12 Order No. ME- 259383 4. Assessments levied by Consolidated Irrigation District No. 19, together with interest, penalty and statutory foreclosure costs, if any, after delinquency: (1st half delinquent on May 1; 2nd half delinquent on November 1) Tax Account No. Year Amount Billed Amount Paid Principal Balance 45104.9071 2003 $77.00 $00.00 $77.00 45104.9096 2003 $286.00 $00.00 $286.00 5. Liability to future assessments by Consolidated Irrigation District No. 19. 6. Assessment levied by Spokane County. For: U.L.I.D. No. 006 Affects: Parcels 45101.9067, 45101.9068 The exact amounts and interest rate may be obtained from the Spokane County Treasurer at (509) 477 -4713 or (509) 477 -2293. 7. Notice of Assessment RID No. 513 by Spokane County Resolution No. 2- 0617. 8. Reservations contained in Deed recorded under Recording No. 745280. E�z� 9. EASEMENT AND THE TERMS AND CONDITIONS THEREOF: GRANTEE: The Washington Water Power Company, a corporation, its successors and assigns PURPOSE: Erect, construction and maintain an electric transmission line and telephone system AREA AFFECTED: Place 4 poles and 1 anchor, together with the right of overhang approx. 1 foot Northerly part of said described property in the location as now surveyed and staked thereon RECORDED: Book 611 /Page 291 RECORDING NO.: 30114B 10. EASEMENT AND THE TERMS AND CONDITIONS THEREOF: GRANTEE: The Washington Water Power Company, a corporation, its successors and assigns PURPOSE: Erect, construction and maintain an electric transmission line and telephone system AREA AFFECTED: Place 1 pole and 1 anchor on the Westerly part of said described property together with right of overhang approx. 700 feet North of the South line thereof RECORDED: Book 611 /Page 293 RECORDING NO.: 301153 Page 7 of 12 Order No. ME- 259383 11. LICENSE AND THE TERMS AND CONDITIONS THEREOF: RECORDED: April 28, 1953 RECORDING NO.: 167864B REGARDING: Picnic and recreation area for the general public 12. EASEMENT AND THE TERMS AND CONDITIONS THEREOF: GRANTEE: The Washington Water Power Company, a corporation PURPOSE: Electrical distribution line and associated fixtures; with right to inspect line and to remove brush and trees AREA AFFECTED: This and other property DATED: January 6, 1964 RECORDED: May 5, 1964 RECORDING NO.: 15237C 13. EASEMENT AND THE TERMS AND CONDITIONS THEREOF: GRANTEE: The United States of America PURPOSE: Construct, reconstruct, operate, maintain a water pipeline AREA AFFECTED: This and other property RECORDED: June 22, 1965 RECORDING NO.: 118205C 14. Reservations contained in deed recorded on August 25, 1988 under Recording No. 8808250250. 15. MATTERS SET FORTH BY SURVEY: RECORDED: RECORDING NO.: DISCLOSES: 16. MATTERS SET FORTH BY SURVEY: RECORDED: RECORDING NO.: March 15, 1990 9003150195 Survey February 25, 1992 and June 22, 1993 9202250063 and 9306220119 Page 8 of 12 17. s EASEMENT AND THE TERMS AND CONDITIONS THEREOF: Order No. ME- 259383 GRANTEE: The Nature Conservancy, a District of Columbia Non - Profit Corporation PURPOSE: Access AREA AFFECTED: East 50 feet of the West 250 feet of the North 350 feet of the Northeast quarter according to U.S. Government subdivision procedures, Section 10, Township 25 North, Range 44 East, W.M. and West 50 feet of the Southeast quarter, according to U.S. Government subdivision procedures, lying North of the Northerly right of way line of the Union Pacific Railroad, in Section 10, Township 25 North, Range 44 East, W.M. DISCLOSED BY: Statutory Warranty Deed RECORDED: April 2, 1993 RECORDING NO.: 9304020173 18. EASEMENT AND THE TERMS AND CONDITIONS THEREOF: GRANTEE: Spokane County PURPOSE: Curbs, sidewalks, drainage, signage and ' other usage deemed necessary AREA AFFECTED: This and other property QSJj,/'- RECORDED: June 18, 1998 RECORDING NO.: 4233841 19. EASEMENT AND THE TERMS AND CONDITIONS THEREOF: GRANTEE: PURPOSE: 4' AREA AFFECTED: RECORDED: RECORDING NO.: Spokane County Construction, installation, operations, maintenance and repair of public utilities, signs and road maintenance installed or in the future installed This and other property June 18, 1998 4233842 20. EASEMENT AND THE TERMS AND CONDITIONS THEREOF: GRANTEE: Spokane County PURPOSE: Curbs, sidewalks, drainage, signage and other usage deemed necessary G5S AREA AFFECTED: This and other property RECORDED: November 9, 1998 RECORDING NO.: 4291014 Page 9 of 12 21 22 Order No. ME- 259383 EASEMENT AND THE TERMS AND CONDITIONS THEREOF: GRANTEE: U.S. West Communications Inc. PURPOSE: Construct, operate and maintain an underground electric distribution system and underground natural gas system AREA AFFECTED: This and other property RECORDED: August 6, 1999 RECORDING NO.: 4399236 EASEMENT AND THE TERMS AND CONDITIONS THEREOF: GRANTEE: NextLink, a corporation PURPOSE: Construct, install, operate and maintain a communication system; Ingress and egress and Cut and trim trees AREA AFFECTED: This and other property RECORDED: August 18, 1999 RECORDING NO.: 4402901 23. SPECIAL ASSESSMENT AGREEMENT AND THE TERMS AND CONDITIONS THEREOF: RECORDED: RECORDING NO.: June 17, 1999 4380652 24. Covenants, conditions and restrictions imposed by instrument recorded on December 17, 1999, under Recording No. 4440953, including, but not limited to, liability for assessments levied by the community association, and rights or benefits which may be disclosed affecting land outside the boundary described in Schedule A. 25. TITLE NOTICE AND THE TERMS AND CONDITIONS THEREOF: GIVEN BY: Spokane County Division of Current Planning REGARDING: Land Use Regulation Action DATED: January 25, 2000 RECORDED: January 27, 2000 RECORDING NO.: 4451501 26. TITLE NOTICE AND THE TERMS AND CONDITIONS THEREOF: GIVEN BY: Spokane County Division of Current Planning REGARDING: Land Use Action DATED: January 25, 2000 RECORDED: January 27, 2000 RECORDING NO.: 4451502 27. EASEMENT AGREEMENT AND THE TERMS AND CONDITIONS THEREOF: RECORDED: January 28, 2000 RECORDING NO.: 4451600 Page 10 of 12 Order No. ME- 259383 28. EASEMENT AND THE TERMS AND CONDITIONS THEREOF: GRANTEE: The Washington Water Power Company, a corporation, its successors and assigns PURPOSE: Erect, construction and maintain an electric transmission line and telephone system AREA AFFECTED: Place 4 poles and 1 anchor, together with the right of overhang approx. 1 foot north of the South property line and 2 poles and 2 anchor approx. 900 feet West of the East line and parallel thereto, on said described property RECORDED: Book 570 /Page 108 RECORDING NO.: 822076A AFFECTS: Parcel D and other property 29. AGREEMENT AND THE TERMS AND CONDITIONS THEREOF: 5V L RECORDED: Volume 32 /Page 260 RECORDING NO.: 942025A REGARDING: Pipeline AFFECTS: Parcel D and other property 30. EASEMENT AND THE TERMS AND CONDITIONS THEREOF: GRANTEE: The Washington Water Power Company, a corporation PURPOSE: Electrical distribution line and associated fixtures; with right to inspect line and to remove brush and trees AREA AFFECTED: This and other property DATED: April 27, 1973 RECORDED: May 24, 1973 RECORDING NO.: 7305240040 AFFECTS: Parcel D and other property 31. BORDER EASEMENT AND THE TERMS AND CONDITIONS THEREOF: FAVOR OF: Spokane County, a political subdivision of State of Washington -k,-PURPOSE: Sidewalks, driveways and landscaping 45�jREA AFFECTED: Either side of Mirabeau Parkway as described therein RECORDED: January 23, 1998 RECORDING NO.: 4181251 32. MATTERS SET FORTH BY SURVEY: RECORDED: September 11, 2000 and November 16, 2001 RECORDING NOS.: 4514966 and 4655211 DISCLOSES: Road Right of Way Page 11 of 12 v � � Order No. ME- 259383 33. TITLE NOTICE AND THE TERMS AND CONDITIONS THEREOF: GIVEN BY: Spokane County Division of Planning REGARDING: Land Use Regulation in File No. ZE37A -96 DATED: October 29, 2001 RECORDED: November 1, 2001 RECORDING NO.: 4649290 END OF EXCEPTIONS INVESTIGATION SHOULD BE MADE TO DETERMINE IF THERE ARE ANY SERVICE, INSTALLATION, MAINTENANCE OR CONSTRUCTION CHARGES FOR SEWER, WATER OR ELECTRICITY. IN THE EVENT THIS TRANSACTION FAILS TO CLOSE, A CANCELLATION FEE WILL BE CHARGED FOR SERVICES RENDERED IN ACCORDANCE WITH OUR RATE SCHEDULE. NOTE 1: According to the application for title insurance, the proposed insured(s) is /are City of Spokane Valley, a municipal corporation. We find no pertinent matters of record against the name(s) of said party (ies) . NOTE 2: This property may be subject to a charge by Spokane County for sewer construction, referred to as a Capital Facilities Rate (CFR) This charge is in addition to the monthly charge for sewer services. Please contact the Division of Utilities Billing Section for information (509) 477 -3604. NOTE 3: Property Address: Not Disclosed. For verification of address, please call the City Public Works Department at 625 -6300 or the County Public Works Department at 477 -3675. NOTE 4: Unless otherwise requested, the forms of connection with this commitment will be ALTA case of standard lender's coverage, the CLTA 1990. The policy committed for or requested at the office which issued the commitment. policy form(s) referred to in this commitment upon request. NOTE 5: Transfer to be according to statute. ENCLOSURES: Paragraph(s) 7 - 33 Sketch sac Page 12 of 12 policy to be issued in 1992 policies, or, in the Standard Coverage Policy - may be examined by inquiry A specimen copy of the will be furnished promptly n 1 2.9108 TRANS CATION TnU INSURANCE CQMPANv This sketch is Pmv]dmi, without charge fitr ynur i'lroml :J0. *_ It is not ffifo l"J to shay" 01 I:wwra reir,;sd to the Pr pe" ieclt: r;itt� t but rct Ilntacd to ana, duncrsb:u, os3nnens, enaawlnn:nfn, er loca <;: of h and r ea Its not Part o, nor does it modify, the wn:rnitms .t rr policy to whlat it is at cched The wmPanY assumes NO LIABILITY for any matter related to this sketch. Reference should be made to an accurate Survey for Autha v I � I 1.9071 �/� 1.9072 ^� �1 9101 n — — — — — - BURLINGTON NORTHERN RAILROAD -���� _ INDIANA AVE 4.9091 — �— — -- I� 4.9099 4.9095 4.9099 4.9080 I 4.9093 4.9094 I BSP 0 07 49084 390(1 4.9098 SPO - KANI; CDq pALOUSE 4.9083 L__ -� 1. 0 5 40034 RR INTERSTATE 90 NORA AVE I I ,N41 , AVE r 4.9055 I SP 94 -950 4.9024 4.9050 4.9070 / 59� 4.9040 49059 II 4.9082 AbE 0�(• (R� / / / 7.902W I I / OWNER'S POLICY OF TITLE INSURANCE Issued by Transnation Title Insurance Company GLandAmerica Transnation Title Insurance Company is a member of the LandAmerica family of title insurance underwriters. Transnation SUBJECT TO THE EXCLUSIONS FROM COVERAGE, THE EXCEPTIONS FROM COVERAGE CONTAINED IN SCHEDULE B AND THE CONDITIONS AND STIPULATIONS, TRANSNATION TITLE INSURANCE COMPANY, an Arizona corporation, herein called the Company, insures, as of Date of Policy shown in Schedule A, against loss or damage, not exceeding the Amount of Insurance stated in Schedule A, sustained or incurred by the insured by reason of: 1. Title to the estate or interest described in Schedule A being vested other than as stated therein; 2. Any defect in or lien or encumbrance on the title; 3. Unmarketability of the title; 4. Lack of a right of access to and from the land. The Company will also pay the costs, attorneys' fees and expenses incurred in defense of the title, as insured, but only to the extent provided in the Conditions and Stipulations. IN WITNESS WHEREOF, TRANSNATION TITLE INSURANCE COMPANY has caused its corporate name and seal to be hereunto affixed by its duly authorized officers, the Policy to become valid when countersigned by an authorized officer or agent of the Company. TRANSNATION TITLE INSURANCE COMPANY jN �NCORPOR4PF40 3�7 C� ��i✓L�ir SEPT. 16, 1991 �� By: Attest: 4L President Secretary 4#lzo,010, EXCLUSIONS FROM COVERAGE The following matters are expressly excluded from the coverage of this policy and the Company will not pay loss or damage, costs, attorneys' fees or expenses which arise by reason of: 1. (a) Any law, ordinance or governmental regulation (including but not limited to building and zoning laws, ordinances, or regulations) restricting, regulating, prohibiting or relating to (i) the occupancy, use, or enjoyment of the land; (ii) the character, dimensions or location of any improvement now or hereafter erected on the land; (iii) a separation in ownership or a change in the dimensions or area of the land or any parcel of which the land is or was a part; or (iv) environmental protection, or the effect of any violation of these laws, ordinances or governmental regulations, except to the extent that a notice of the enforcement thereof or a notice of a defect, lien or encumbrance resulting from a violation or alleged violation affecting the land has been recorded in the public records at Date of Policy. (b) Any governmental police power not excluded by (a) above, except to the extent that a notice of the exercise thereof or a notice of a defect, lien or encumbrance resulting from a violation or alleged violation affecting the land has been recorded in the public records at Date of Policy. 2. Rights of eminent domain unless notice of the exercise thereof has been recorded in the public records at Date of Policy, but not excluding from coverage any taking which has occurred prior to Date of Policy which would be binding on the rights of a purchaser for value without knowledge. 3. Defects, liens, encumbrances, adverse claims or other matters: (a) created, suffered, assumed or agreed to by the insured claimant; (b) not known to the Company, not recorded in the public records at Date of Policy, but known to the insured claimant and not disclosed in writing to the Company by the insured claimant prior to the date the insured claimant became an insured under this policy; (c) resulting in no loss or damage to the insured claimant; (d) attaching or created subsequent to Date of Policy; or (e) resulting in loss or damage which would not have been sustained if the insured claimant had paid value for the estate or interest insured by this policy. 4. Any claim, which arises out of the transaction vesting in the Insured the estate or interest insured by this policy, by reason of the operation of federal bankruptcy, state insolvency, or similar creditors' rights laws, that is based on: (a) the transaction creating the estate or interest insured by this policy being deemed a fraudulent conveyance or fraudulent transfer; or (b) the transaction creating the estate or interest insured by this policy being deemed a preferential transfer except where the preferential transfer results from the failure: (i) to timely record the instrument of transfer; or (ii) of such recordation to impart notice to a purchaser for value or a judgment or lien creditor. NM PA 10 ALTA Owner's Policy (10/17/92) Face Page ORIGINAL Form 1190 -56A Valid only if Schedules A and B and Cover are attached CONDITIONS AND STIPULATIONS 1. DEFINITION OF TERMS. The following terms when used in this policy mean: (a) "insured ": the insured named in Schedule A, and, subject to any rights or defenses the Company would have had against the named insured, those who succeed to the interest of the named insured by operation of law as distinguished from purchase including, but not limited to, heirs, distributees, devisees, survivors, personal representatives, next of kin, or corporate or fiduciary successors. (b) "insured claimant ": an insured claiming loss or damage. (c) "knowledge" or "known ": actual knowledge, not constructive knowledge or notice which may be imputed to an insured by reason of the public records as defined in this policy or any other records which impart constructive notice of matters affecting the land. (d) "land ": the land described or referred to in Schedule A, and improvements affixed thereto which by law constitute real property. The term "land" does not include any property beyond the lines of the area described or referred to in Schedule A, nor any right, title, interest, estate or easement in abutting streets, roads, avenues, alleys, lanes, ways or waterways, but nothing herein shall modify or limit the extent to which a right of access to and from the land is insured by this policy. (e) "mortgage ": mortgage, deed of trust, trust deed, or other security instrument. (f) "public records ": records established under state statutes at Date of Policy for the purpose of imparting constructive notice of matters relating to real property to purchasers for value and without knowledge. With respect to Section 1(a)(iv) of the Exclusions From Coverage, "public records" shall also include environmental protection liens filed in the records of the clerk of the United States district court for the district in which the land is located. (g) "unmarketability of the title ": an alleged or apparent matter affecting the title to the land, not excluded or excepted from coverage, which would entitle a purchaser of the estate or interest described in Schedule A to be released from the obligation to purchase by virtue of a contractual condition requiring the delivery of marketable title. 2. CONTINUATION OF INSURANCE AFTER CONVEYANCE OF TITLE. The coverage of this policy shall continue in force as of Date of Policy in favor of an insured only so long as the insured retains an estate or interest in the land, or holds an indebtedness secured by a purchase money mortgage given by a purchaser from the insured, or only so long as the insured shall have liability by reason of covenants of warranty made by the insured in any transfer or conveyance of the estate or interest. This policy shall not continue in force in favor of any purchaser from the insured of either (i) an estate or interest in the land, or (ii) an indebtedness secured by a purchase money mortgage given to the insured. 3. NOTICE OF CLAIM TO BE GIVEN BY INSURED CLAIMANT. The insured shall notify the Company promptly in writing (i) in case of any litigation as set forth in Section 4(a) below, (ii) in case knowledge shall come to an insured hereunder of any claim of title or interest which is adverse to the title to the estate or interest, as insured, and which might cause loss or damage for which the Company may be liable by virtue of this policy, or (iii) if title to the estate or interest, as insured, is rejected as unmarketable. If prompt notice shall not be given to the Company, then as to the insured all liability of the Company shall terminate with regard to the matter or matters for which prompt notice is required; provided, however, that failure to notify the Company shall in no case prejudice the rights of any insured under this policy unless the Company shall be prejudiced by the failure and then only to the extent of the prejudice. 4. DEFENSE AND PROSECUTION OF ACTIONS; DUTY OF INSURED CLAIMANT TO COOPERATE. (a) Upon written request by the insured and subject to the options contained in Section 6 of these Conditions and Stipulations, the Company, at its own cost and without unreasonable delay, shall provide for the defense of an insured in litigation in which any third party asserts a claim adverse to the title or interest as insured, but only as to those stated causes of action alleging a defect, lien or encumbrance or other matter insured against by this policy. The Company shall have the right to select counsel of its choice (subject to the right of the insured to object for reasonable cause) to represent the insured as to those stated causes of action and shall not be liable for and will not pay the fees of any other.counsel. The Company will not pay any fees, costs or expenses incurred by the insured in the defense of those causes of action which allege matters not insured by this policy. (b) The Company shall have the right, at its own cost, to institute and prosecute any action or proceeding or to do any other act which in its opinion may be necessary or desirable to establish the title to the estate or interest, as insured, or to prevent or reduce loss or damage to the insured. The Company may take any appropriate action under the terms of this policy, whether or not it shall be liable hereunder, and shall not thereby concede liability or waive any provision of this policy. If the Company shall exercise its rights under this paragraph, it shall do so diligently. (c) Whenever the Company shall have brought an action or interposed a defense as required or permitted by the provisions of this policy, the Company B 1190 -56A may pursue any litigation to final determination by a court of competent jurisdiction and expressly reserves the right, in its sole discretion, to appeal from any adverse judgment or order. (d) In all cases where this policy permits or requires the Company to prosecute or provide for the defense of any action or proceeding, the insured shall secure to the Company the right to so prosecute or provide defense in the action or proceeding, and all appeals therein, and permit the Company to use, at its option, the name of the insured for this purpose. Whenever requested by the Company, the insured, at the Company's expense, shall give the Company all reasonable aid (i) in any action or proceeding, securing evidence, obtaining witnesses, prosecuting or defending the action or proceeding, or effecting settlement, and (ii) in any other lawful act which in the opinion of the Company may be necessary or desirable to establish the title to the estate or interest as insured. If the Company is prejudiced by the failure of the insured to furnish the required cooperation, the Company's obligations to the insured under the policy shall terminate, including any liability or obligation to defend, prosecute, or continue any litigation, with regard to the matter or matters requiring such cooperation. 5. PROOF OF LOSS OR DAMAGE. In. addition to and after the notices required under Section 3 of these Conditions and Stipulations have been provided the Company, a proof of loss or damage signed and sworn to by the insured claimant shall be furnished to the Company within 90 days after the insured claimant shall ascertain the facts giving rise to the loss or damage. The proof of loss or damage shall describe the defect in, or lien or encumbrance on the title, or other matter insured against by this policy which constitutes the basis of loss or damage and shall state, to the extent possible, the basis of calculating the amount of the loss or damage. If the Company is prejudiced by the failure of the insured claimant to provide the required proof of loss or damage, the Company's obligations to the insured under the policy shall terminate, including any liability or obligation to defend, prosecute, or continue any litigation, with regard to the matter or matters requiring such proof of loss or damage. In addition, the insured claimant may reasonably be required to submit to examination under oath by any authorized representative of the Company and shall produce for examination, inspection and copying, at such reasonable times and places as may be designated by any authorized representative of the Company, all records, books, ledgers, checks, correspondence and memoranda, whether bearing a date before or after Date of Policy, which reasonably pertain to the loss or damage. Further, if requested by any authorized representative of the Company, the insured claimant shall grant its permission, in writing, for any authorized representative of the Company to examine, inspect and copy all records, books, ledgers, checks, correspondence and memoranda in the custody or control of a third party, which reasonably pertain to the loss or damage. All information designated as confidential by the insured claimant provided to the Company pursuant to this Section shall not be disclosed to others unless, in the reasonable judgment of the Company, it is necessary in the administration of the claim. Failure of the insured claimant to submit for examination under oath, produce other reasonably requested information or grant permission to secure reasonably necessary information from third parties as required in this paragraph shall terminate any liability of the Company under this policy as to that claim. 6. OPTIONS TO PAY OR OTHERWISE SETTLE CLAIMS; TERMINATION OF LIABILITY. In case of a claim under this policy, the Company shall have the following additional options: (a) To Pay or Tender Payment of the Amount of Insurance. To pay or tender payment of the amount of insurance under this policy together with any costs, attorneys' fees and expenses incurred by the insured claimant, which were authorized by the Company, up to the time of payment or tender of payment and which the Company is obligated to pay. Upon the exercise by the Company of this option, all liability and obligations to the insured under this policy, other than to make the payment required, shall terminate, including any liability or obligation to defend, prosecute, or continue any litigation, and the policy shall be surrendered to the Company for cancellation. (b) To Pay or Otherwise Settle With Parties Other than the Insured or With the Insured Claimant. (i) to pay or otherwise settle with other parties for or in the name of an insured claimant any claim insured against under this policy, together with any costs, attorneys' fees and expenses incurred by the insured claimant which were authorized by the Company up to the time of payment and which the Company is obligated to pay; or (ii) to pay or otherwise settle with the insured claimant the loss or damage provided for under this policy, together with any costs, attorneys' fees and expenses incurred by the insured claimant which were authorized by the Company up to the time of payment and which the Company is obligated to pay. Upon the exercise by the Company of either of the options provided for in paragraphs (b)(i) or (ii), the Company's obligations to the insured under this policy for the claimed loss or damage, other than the payments required to be made, shall terminate, including any liability or obligation to defend, prosecute or continue any litigation. Conditions and Stipulations Continued Inside Cover CONTROL NO. A 31- 0082300 CONDITIONS AND STIPULATIONS 7. DETERMINATION, EXTENT OF LIABILITY AND COINSURANCE. This policy is a contract of indemnity against actual monetary loss or damage sustained or incurred by the insured claimant who has suffered loss or damage by reason of matters insured against by this policy and only to the extent herein described. (a) The liability of the Company under this policy shall not exceed the least of: (i) the Amount of Insurance stated in Schedule A; or, (ii) the difference between the value of the insured estate or interest as insured and the value of the insured estate or interest subject to the defect, lien or encumbrance insured against by this policy. (b) In the event the Amount of Insurance stated in Schedule A at the Date of Policy is less than 80 percent of the value of the insured estate or interest or the full consideration paid for the land, whichever is less, or if subsequent to the Date of Policy an improvement is erected on the land which increases the value of the insured estate or interest by at least 20 percent over the Amount of Insurance stated in Schedule A, then this Policy is subject to the following: (i) where no subsequent improvement has been made, as to any partial loss, the Company shall only pay the loss pro rata in the proportion that the amount of insurance at Date of Policy bears to the total value of the insured estate or interest at Date of Policy; or (ii) where a subsequent improvement has been made, as to any partial loss, the Company shall only pay the loss pro rata in the proportion that 120 percent of the Amount of Insurance stated in Schedule A bears to the sum of the Amount of Insurance stated in Schedule A and the amount expended for the improvement. The provisions of this paragraph shall not apply to costs, attorneys' fees and expenses for which the Company is liable under this policy, and shall only apply to that portion of any loss which exceeds, in the aggregate, 10 percent of the Amount of Insurance stated in Schedule A. (c) The Company will pay only those costs, attorneys' fees and expenses incurred in accordance with Section 4 of these Conditions and Stipulations. S. APPORTIONMENT. If the land described in Schedule A consists of two or more parcels which are not used as a single site, and a loss is established affecting one or more of the parcels but not all, the loss shall be computed and settled on a pro rata basis as if the amount of insurance under this policy was divided pro rata as to the value on Date of Policy of each separate parcel to the whole, exclusive of any improvements made subsequent to Date of Policy, unless a liability or value has otherwise been agreed upon as to each parcel by the Company and the insured at the time of the issuance of this policy and shown by an express statement or by an endorsement attached to this policy. 9. LIMITATION OF LIABILITY. (a) If the Company establishes the title, or removes the alleged defect, lien or encumbrance, or cures the lack of a right of access to or from the land, or cures the claim of unmarketability of title, all as insured, in a reasonably diligent manner by any method, including litigation and the completion of any appeals therefrom, it shall have fully performed its obligations with respect to that matter and shall not be liable for any loss or damage caused thereby. (b) In the event of any litigation, including litigation by the Company or with the Company's consent, the Company shall have no liability for loss or damage until there has been a fmal determination by a court of competent jurisdiction, and disposition of all appeals therefrom, adverse to the title as insured. (c) The Company shall not be liable for loss or damage to any insured for liability voluntarily assumed by the insured in settling any claim or suit without the prior written consent of the Company. 10. REDUCTION OF INSURANCE; REDUCTION OR TERMINATION OF LIABILITY. All payments under this policy, except payments made for costs, attorneys' fees and expenses, shall reduce the amount of the insurance pro tanto. 11. LIABILITY NONCUMULATIVE It is expressly understood that the amount of insurance under this policy shall be reduced by any amount the Company may pay 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 hereafter executed by an insured and which is a charge or lien on the estate or interest described or referred to in Schedule A, and the amount so paid shall be deemed a payment under this policy to the insured owner. 12. PAYMENT OF LOSS. (a) No payment shall be made without producing this policy for endorsement, of the payment unless the policy has been lost or destroyed, in which case proof of loss or destruction shall be furnished to the satisfaction of the Company. NM 1 PA 10 ALTA Owner's Policy (10- 17 -92) Cover Page Form 1190 -58 (Continued) (b) When liability and the extent of loss or damage has been definitely fixed in accordance with these Conditions and Stipulations, the loss or damage shall be payable within 30 days thereafter. 13. SUBROGATION UPON PAYMENT OR SETTLEMENT. (a) The Company's Right of Subrogation. Whenever the Company shall have settled and paid a claim under this policy, all right of subrogation shall vest in the Company unaffected by any act of the insured claimant. The Company shall be subrogated to and be entitled to all rights and remedies which the insured claimant would have had against any person or property in respect to the claim had this policy not been issued. If requested by the Company, the insured claimant shall transfer to the Company all rights and remedies against any person or property necessary in order to perfect this right of subrogation. The insured claimant shall permit the Company to sue, compromise or settle in the name of the insured claimant and to use the name of the insured claimant in any transaction or litigation involving these rights or remedies. If a payment on account of a claim does not fully cover the loss of the insured claimant, the Company shall be subrogated to these rights and remedies in the proportion which the Company's payment bears to the whole amount of the loss. If loss should result from any act of the insured claimant, as stated above, that act shall not void this policy, but the Company, in that event, shall be required to pay only that part of any losses insured against by this policy which shall exceed the amount, if any, lost to the Company by reason of the impairment by the insured claimant of the Company's right of subrogation. (b) The Company's Rights Against Non - insured Obligors. The Company's right of subrogation against non - insured obligors shall exist and shall include, without limitation, the rights of the insured to indemnities, guaranties, other policies of insurance or bonds, notwithstanding any terms or conditions contained in those instruments which provide for subrogation rights by reason of this policy. 14. ARBITRATION Unless prohibited by applicable law, either the Company or the insured may demand arbitration pursuant to the Title Insurance Arbitration Rules of the American Arbitration Association. Arbitrable matters may include, but are not limited to, any controversy or claim between the Company and the insured arising out of or relating to this policy, any service of the Company in connection with its issuance or the breach of a policy provision or other obligation. All arbitrable matters when the Amount of Insurance is $1,000,000 or less shall be arbitrated at the option of either the Company or the insured. All arbitrable matters when the Amount of Insurance is in excess of $1,000,000 shall be arbitrated only when agreed to by both the Company and the insured. Arbitration pursuant to this policy and under the Rules in effect on the date the demand for arbitration is made or, at the option of the insured, the Rules in effect at Date of Policy shall be binding upon the parties. The award may include attorneys' fees only if the laws of the state in which the land is located permit a court to award attorneys' fees to a prevailing party. Judgment upon the award rendered by the Arbitrator(s) may be entered in any court having jurisdiction thereof. The law of the situs of the land shall apply to an arbitration under the Title Insurance Arbitration Rules. A copy of the Rules may be obtained from the Company upon request. 15. LIABILITY LIMITED TO THIS POLICY; POLICY ENTIRE CONTRACT. (a) This policy together with all endorsements, if any, attached hereto by the Company is the entire policy and contract between the insured and the Company. In interpreting any provision of this policy, this policy shall be construed as a whole. (b) Any claim of loss or damage, whether or not based on negligence, and which arises out of the status of the title to the estate or interest covered hereby or by any action asserting such claim, shall be restricted to this policy. (c) No amendment of or endorsement to this policy can be made except by a writing endorsed hereon or attached hereto signed by either the President, a Vice President, the Secretary, an Assistant Secretary, or validating officer or authorized signatory of the Company. 16. SEVERABILITY. In the event any provision of the policy is held invalid or unenforceable under applicable law, the policy shall be deemed not to include that provi- sion and all other provisions shall remain in full force and effect. 17. NOTICES, WHERE SENT. All notices required to be given the Company and any statement in writing required to be fumished the Company shall include the number of this policy and shall be addressed to: Consumer Affairs Department, P.O. Box 27567, Richmond, Virginia 23261 -7567. ORIGINAL Valid Only If Face Page, Schedules A and B Are Attached SCHEDULE A Amount of Insurance: $100,000.00 Policy No. Z- 259383 Premium: $ 500.00 Date of Policy: October 28, 2003 at 8:00 A.M. 1. Name of Insured: CITY OF SPOKANE VALLEY, a municipal corporation 2. The estate or interest in the land described herein and which is covered by this policy is: FEE SIMPLE 3. The estate or interest referred to herein is at Date of Policy vested in. THE NAMED INSURED 4. The land referred to in this policy is described as follows: See "LEGAL DESCRIPTION:" Authorized OAfter or Agent t Owner's Standard Policy LEGAL DESCRIPTION: PARCEL A- Policy No. Z- 259383 A portion of the Northeast quarter of Section 10, Township 25 North, Range 44 East, W.M., being more particularly described as follows: The Northerly 300.00 feet of the Northeast quarter of said Section 10, as measured at right angles to the Northerly line of the Northeast quarter of said Section 10, lying Southwesterly of the Southwesterly right of way line of Mirabeau Parkway as delineated on CRP 2762 as filed in the Office of the Spokane County Engineering Department; EXCEPT the Northerly 300.00 feet of the Westerly 200.00 feet of the Northwest quarter of the Northeast quarter of said Section 10, as measured at right angles to the Northerly and Westerly line of said Northeast quarter of said Section 10; Situate in the County of Spokane, State of Washington. (Parcel No. 45101.9068) PARCEL B• A portion of the Northeast quarter of Section 10, Township 25 North, Range 44 East, W.M., being more particularly described as follows: BEING the Northerly 300.00 feet of the Northeast quarter of said Section 10, as measured at right angles to the Northerly line of the Northeast quarter of said Section 10 lying Easterly of the Easterly right of way line of Mirabeau Parkway as delineated on CRP 2762 as filed in the Office of the Spokane County Engineering Department and Westerly of the Westerly right of way line of the Inland Empire Paper Company Railway; Situate in the County of Spokane, State of Washington. (Parcel No. 45101.9068) PARCEL C• Part of the Southeast quarter of Section 10, Township 25 North, Range 44 East, W.M., and being more particularly described as follows: legal Cont. 2 Owner's Standard Policy legal cont. Policy No. Z- 259383 COMMENCING at the East quarter corner of said section; thence North 89 056111" West, along the North line of said quarter section 1663.19 feet of the East right of way line of Discovery Place; thence South 00 011133" West, along said right of way line 212.19 feet to the point of beginning; thence South 89 056111" East, 519.45 feet to the Westerly right of way line of Mirabeau Parkway; thence South 41 056'08" West, along said right of way line, 403.74 feet to a tangent curve to the right, the radius of which bears North 48 003'52" West, a distance of 27.50 feet, through a central angle of 84 059'41" an arc distance of 40.79 feet, to the North right of way line of Mansfield Avenue and the beginning curve to the left, the radius of which bears 36 05514811, a distance of 227.00 feet; thence along said right of way line and said curve to the left, through a central angle of 36 05115911, an arc distance of 146.06 feet to a point of tangency; thence North 89 056'11" West, 49.82 feet to a tangent curve to the right, the radius of which bears North 00 003'49" East, a distance of 27.50 feet, through a central angle of 90 00714411, an arc distance of 43.26 feet, to the East right of way line of Discovery Place; thence North 00 011'33" East, along said line 231.33 feet to the Point of Beginning; Situate in the County of Spokane, State of Washington. (Parcel No. 45104.9071) PARCEL n! That portion of the East half of Section 10, Township 25 North, Range 44 East, W.M., described as follows: COMMENCING at the East quarter corner of said Section 10; thence North 89 056.11" West, along the centerline of said Section 10, 1013.95 feet to the Westerly right of way line of Mirabeau Parkway the Point of Beginning of this description; said Point of Beginning being on a curve to the right the radius of which bears North 69 010122" West, a distance of 673.00 feet; thence along said Westerly right of way line and curve to the left, through a central angle of 21 00613011, an arc distance of 247.94 feet to a point to tangency; thence South 41 156'08" West, along said Westerly right of way line, 3.18 feet; thence North 89 056111" West, 519.45 feet, to the Easterly right of way line of Discovery Place; thence along the Easterly and Northerly right of way line of Discovery Place the following 5 courses: 1) North 00 011'33" East, 323.56 feet, to the beginning of a curve to the right the radius of which bears South 89 048127" East, a distance of 673.00 feet; 2) along said curve to the right, through a central angle of legal cont. Owner's Standard Policy legal cont. Policy No. Z- 259383 27 05210811, an arc distance of 327.35 feet to the beginning of a curve to the right the radius of which bears South 61 056119" East, a distance of 37.50 feet; 3) along said curve to the right through a central angle of 24 02811711, an arc distance of 16.02 feet to a point of tangency; 4) North 52 131'58" East, 75.56 feet, to the beginning of a curve to the left the radius of which bears North 37 028102" West, a distance of 62.50 feet; 5) along said curve to the left, through a central angle of 201 02914211, an arc distance of 219.80 feet to the Easterly line of the YMCA property; thence North 25 022125" West, along said Easterly line, 249.28 feet to the Northeast corner of the YMCA property; thence North 89 056'11" West, along the North line of the YMCA property; 740.00 feet to the East line of the West 200.00 feet of the Northeast quarter of said Section 10; thence North 00 006'27" East, along said East line 1560.16 feet to the South line of the North 300.00 feet of the Northeast quarter of said Section 10; thence South 89 027133" East, along said South line, 693.58 feet to the Westerly right of way line of Mirabeau Parkway; thence along the Westerly right of way line of Mirabeau Parkway the following 8 courses: 1) along a curve to the right the radius of which bears South 56 054122" West, a curve distance of 673.00 feet, through a central angle of 17 °12'18", an arc distance of 202.09 feet to a point of tangency; 2) South 15 053'21" East, 463.38 feet, to the beginning of a curve to the left the radius of which bears North 74 006139" East, a distance of 727.00 feet; 3) along said curve to the left, through a central angle of 08 00911111, an arc distance of 103.45 feet to a point of tangency; 4) South 24 002132" East, 255.31 feet, to the beginning of a curve to the right the radius of which bears South 65 157'28" West, a distance of 673.00 feet; 5) along said curve to the right, through a central angle of 20 129'03 ", an arc distance of 240.61 feet to the beginning of a curve to the left the radius of which bears North 86 026131" East, a distance of 727.00 feet; 6) along said curve to the left through a central angle of 3803610811, an arc distance of 489.81 feet to a point of tangency; 7) South 42 009'36" East, 26.61 feet to the beginning of a curve to the right the radius of which bears South 47 050124" West, a distance of 673.00 feet; 8) along said curve to the right, through a central angle of 62 05911411, an arc distance of 739.85 feet to the Point of Beginning of this description; legal cont. 4 Owner's Standard Policy legal cont. Policy No. Z- 259383 EXCEPT that portion conveyed to Spokane County for Discovery Place, Road File No. 2666 by deed under Auditor's File No. 447291; Situate in the County of Spokane, State of Washington. (Parcel No. 45105.9096) k Owner's Standard Policy Policy No. Z- 259383 SCHEDULE B EXCEPTIONS FROM COVERAGE This policy does not insure against loss or damage (and the Company will not pay costs, attorneys' fees or expenses) which arise by reason of: STANDARD EXCEPTIONS 1. Taxes or assessments which are not now payable or 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. Any 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 which may be asserted by persons in possession, or claiming to be in possession, thereof. 3. Easements, liens or encumbrances, or claims thereof, which are not shown by the public records. 4. Discrepancies, conflicts in boundary lines, shortage in area, encroachments, or any other facts which a correct survey of the land would disclose, and which are not shown by the public records. 5. Any lien, or right to a lien, for labor, material, services or equipment, or for contributions to employee benefit plans, or liens under Workmans' Compensation Acts, not disclosed by the public records. 6. (a) Unpatented mining claims; (b) reservations or exceptions in patents or in Acts authorizing the issuance thereof; (c) Indian treaty or aboriginal rights, including, but not limited to, easements or equitable servitudes; or, (d) water rights, claims or title to water, whether or not the matters excepted under (a), (b), (c) or (d) are shown by the public records. 7. Right of use, control or regulation by the United States of America in the exercise of powers over navigation; any prohibition or limitation on the use, occupancy or improvement of the land resulting from the rights of the public or riparian owners to use any waters which may cover the land or to use any portion of the land which is now or may formerly have been covered by water. 8. Any service, installation, connection, maintenance or construction charges for sewer, water, electricity, or garbage collection or disposal, or other utilities unless disclosed as an existing lien by the public records. Owner's Standard Policy SPECIAL EXCEPTIONS Policy No. Z- 259383 1. Liability to future assessments by Consolidated Irrigation District No. 19. 2. Assessment levied by Spokane County. For: U.L.I.D. No. 006 Affects: Parcels 45101.9067, 45101.9068 The exact amounts and interest rate may be obtained from the Spokane County Treasurer at (509) 477 -4713 or (509) 477 -2293. 3. Notice of Assessment RID No. 513 by Spokane County Resolution No. 2- 0617. 4. Reservations contained in Deed recorded under Recording No. 745280. 5. EASEMENT AND THE TERMS AND CONDITIONS THEREOF: GRANTEE: The Washington Water Power Company, a corporation, its successors and assigns PURPOSE: Erect, construction and maintain an electric transmission line and telephone system AREA AFFECTED: Place 4 poles and 1 anchor, together with the right of overhang approx. 1 foot Northerly part of said described property in the location as now surveyed and staked thereon RECORDED: Book 611 /Page 291 RECORDING NO.: 3011413 6. EASEMENT AND THE TERMS AND CONDITIONS THEREOF: GRANTEE: The Washington Water Power Company, a corporation, its successors and assigns PURPOSE: Erect, construction and maintain an electric transmission line and telephone system AREA AFFECTED: Place 1 pole and 1 anchor on the Westerly part of said described property together with right of overhang approx. 700 feet North of the South line thereof RECORDED: Book 611 /Page 293 RECORDING NO.: 30115B 7. LICENSE AND THE TERMS AND CONDITIONS THEREOF: RECORDED: April 28, 1953 RECORDING NO.: 167864B REGARDING: Picnic and recreation area for the general public 7 Owner's Standard Policy Policy No. Z- 259383 8. EASEMENT AND THE TERMS AND CONDITIONS THEREOF: GRANTEE: The Washington Water Power Company, a corporation PURPOSE: Electrical distribution line and associated fixtures; with right to inspect line and to remove brush and trees AREA AFFECTED: This and other property DATED: January 6, 1964 RECORDED: May 5, 1964 RECORDING NO.: 15237C 9. EASEMENT AND THE TERMS AND CONDITIONS THEREOF: GRANTEE: The United States of America PURPOSE: Construct, reconstruct, operate, maintain a water pipeline AREA AFFECTED: This and other property RECORDED: June 22, 1965 RECORDING NO.: 118205C 10 11 12 Reservations contained in deed recorded on August 25, 1988 under Recording No. 8808250250. MATTERS SET FORTH BY SURVEY: RECORDED: RECORDING NO.: DISCLOSES: MATTERS SET FORTH BY SURVEY: RECORDED: RECORDING NO.: March 15, 1990 9003150195 Survey February 25, 1992 and June 22, 1993 9202250063 and 9306220119 13. EASEMENT AND THE TERMS AND CONDITIONS THEREOF: GRANTEE: The Nature Conservancy, a District of Columbia Non - Profit Corporation PURPOSE: Access AREA AFFECTED: East 50 feet of the West 250 feet of the North 350 feet of the Northeast quarter according to U.S. Government subdivision procedures, Section 10, Township 25 North, Range 44 East, W.M. and West 50 feet of the Southeast quarter, according to U.S. Government subdivision procedures, lying North of the Northerly right of way line of the Union Pacific Railroad, in Section 10, Township 25 North, Range 44 East, W.M. DISCLOSED BY: Statutory Warranty Deed RECORDED: April 2, 1993 RECORDING NO.: 9304020173 I Owner's Standard Policy Policy No. Z- 259383 14. EASEMENT AND THE TERMS AND CONDITIONS THEREOF: GRANTEE: Spokane County PURPOSE: Curbs, sidewalks, drainage, signage and other usage deemed necessary AREA AFFECTED: Parcels A through D RECORDED: June 18, 1998 RECORDING NO.: 4233841 15. EASEMENT AND THE TERMS AND CONDITIONS THEREOF: GRANTEE: Spokane County PURPOSE: Construction, installation, operations, maintenance and repair of public utilities, signs and road maintenance installed or in the future installed AREA AFFECTED: Parcels A, B and D RECORDED: June 18, 1998 RECORDING NO.: 4233842 16. EASEMENT AND THE TERMS AND CONDITIONS THEREOF: GRANTEE: Spokane County PURPOSE: Curbs, sidewalks, drainage, signage and other usage deemed necessary AREA AFFECTED: Parcel C RECORDED: November 9, 1998 RECORDING NO.: 4291014 17. EASEMENT AND THE TERMS AND CONDITIONS THEREOF: GRANTEE: U.S. West Communications Inc. PURPOSE: Construct, operate and maintain an underground electric distribution system and underground natural gas system AREA AFFECTED: This and other property RECORDED: August 6, 1999 RECORDING NO.: 4399236 18. EASEMENT AND THE TERMS AND CONDITIONS THEREOF: GRANTEE: NextLink, a corporation PURPOSE: Construct, install, operate and maintain a communication system; Ingress and egress and Cut and trim trees AREA AFFECTED: This and other property RECORDED: August 18, 1999 RECORDING NO.: 4402901 19. SPECIAL ASSESSMENT AGREEMENT AND THE TERMS AND CONDITIONS THEREOF: RECORDED: RECORDING NO.: June 17, 1999 4380652 9 Owner's Standard Policy Policy No. Z- 259383 20. Covenants, conditions and restrictions imposed by instrument recorded on December 17, 1999, under Recording No. 4440953, including, but not limited to, liability for assessments levied by the community association, and rights or benefits which may be disclosed affecting land outside the boundary described in Schedule A. 21. TITLE NOTICE AND THE TERMS AND CONDITIONS THEREOF: GIVEN BY: Spokane County Division of Current Planning REGARDING: Land Use Regulation Action DATED: January 25, 2000 RECORDED: January 27, 2000 RECORDING NO.: 4451501 22. TITLE NOTICE AND THE TERMS AND CONDITIONS THEREOF: GIVEN BY: Spokane County Division of Current Planning REGARDING: Land Use Action DATED: January 25, 2000 RECORDED: January 27, 2000 RECORDING NO.: 4451502 23. EASEMENT AGREEMENT AND THE TERMS AND CONDITIONS THEREOF: RECORDED: RECORDING NO.: January 28, 2000 4451600 24. EASEMENT AND THE TERMS AND CONDITIONS THEREOF: GRANTEE: The Washington Water Power Company, a corporation, its successors and assigns PURPOSE: Erect, construction and maintain an electric transmission line and telephone system AREA AFFECTED: Place 4 poles and 1 anchor, together with the right of overhang approx. 1 foot north of the South property line and 2 poles and 2 anchor approx. 900 feet West of the East line and parallel thereto, on said described property RECORDED: Book 570 /Page 108 RECORDING NO.: 822076A AFFECTS: Parcel D and other property 25. AGREEMENT AND THE TERMS AND CONDITIONS THEREOF: RECORDED: Volume 32 /Page 260 RECORDING NO.: 942025A REGARDING: Pipeline AFFECTS: Parcel D and other property 10 Owner's Standard Policy Policy No. Z- 259383 26. EASEMENT AND THE TERMS AND CONDITIONS THEREOF: GRANTEE: The Washington Water Power Company, a corporation PURPOSE: Electrical distribution line and associated fixtures; with right to inspect line and to remove brush and trees AREA AFFECTED: This and other property DATED: April 27, 1973 RECORDED: May 24, 1973 RECORDING NO.: 7305240040 AFFECTS: Parcel D and other property 27. BORDER EASEMENT AND THE TERMS AND CONDITIONS THEREOF: FAVOR OF: Spokane County, a political subdivision of State of Washington PURPOSE: Sidewalks, driveways and landscaping AREA AFFECTED: Either side of Mirabeau Parkway as described therein RECORDED: January 23, 1998 RECORDING NO.: 4181251 AFFECTS: Parcel D and other property 28. MATTERS SET FORTH BY SURVEY: RECORDED: September 11, 2000 and November 16, 2001 RECORDING NOS.: 4514966 and 4655211 DISCLOSES: Road Right of Way 29. TITLE NOTICE AND THE TERMS AND CONDITIONS THEREOF: GIVEN BY: REGARDING: DATED: RECORDED: RECORDING NO.: 30. BORDER EASEMENT: Spokane County Division of Planning Land Use Regulation in File No. ZE37A -96 October 29, 2001 November 1, 2001 4649290 In Favor of: Spokane County a Political subdivision of the State of Washington PURPOSE: Mirabeau Parkway Road File No. 2179 & 2666 AREA AFFECTED: Parcels A through D RECORDED: November 29, 2000 RECORDING NO.: 4537224 11 Owner's Standard Policy 31. BORDER EASEMENT: ekh GRANTEE: Spokane C, the State PURPOSE: Discovery AREA AFFECTED: Parcels C RECORDED: April 17, RECORDING NO.: 4472491 Policy No. Z- 259383 Runty a Political subdivision of of Washington Place Road File No. 2666 and D 2000 END OF EXCEPTIONS 12