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20020926001704 11111111111111101 11 111 • Return Address: 20020926001704 City of Federal Way PAGE F 001 OF 23.00 00/28/2002 14:32 Attn: Law Dept. KING COUNTY, WA 33530 1st Way S. PO Box 9718 Federal Way, WA 98063 -9718 STATUTORY WARRANTY DEED 5/Z3 Grantor (s): Merle F. Pfeifer, as his separate estate 01210 Grantee (s): CITY OF FEDERAL WAY, a Washington municipal corporation Property Legal Description (abbreviated): Ptn Lot 4, Dick Balch Add. No. 1, Vol. 99, pgs. 61 -62 Additional Legal(s) on Exhibit A Assessor's Tax Parcel ID#(s): 038090 -0045 THE GRANTOR, MERLE F. PFEIFER, as his separate estate, for and in consideration of Ten Dollars ($10.00) and other good and valuable consideration, receipt of which is hereby acknowledged, and c- ? under threat of the exercise of eminent domain, conveys and warrants to the CITY OF FEDERAL WAY, a cm Washington municipal corporation, the real property described in Exhibit "A" herewith attached and made a part hereof, and any after- acquired interest therein, situated in King County in the State of Washington. cv DATED THIS S day of ,,. tide • , 2002. GRANTOR ,_ J.1,�_ !X ,< Mer F. Pfeifer / Christena Pfei r, spouse ACKNOWLEDGEMENT OF HOMESTEAD RIGHTS ONLY J�o Federal ID # dra a yv.A o-7 E1911987 00/20/2002 13. 8 KING COUNTY, W ,00 SALE $0.00 PAGE 001 OF 002 f STATE OF WASHINGTON ss. COUNTY OF KING I certify that I know or have satisfactory evidence that MERLE F. PFEIFER is the person who appeared before me, and said person acknowledged that he signed this instrument and acknowledged it to be their free and voluntary act and deed, with full knowledge of its contents, for the uses and purposes therein mentioned. DATED this OZ day of \J Gt- / , 2002. ,■4% _ icol/ BUTT No Public oON Et 9 Residing at it., 1 t j o ff ` BAR Y u' My appointment expires (0-- ($— 075.6 E c� No a 10 -18 -2005 9 � F OF W P „o �.e o • N Federal ID # -2- PARCEL: 038090 -0045 PACIFIC NORTHWEST TITLE STATE OF WASHINGTON, KING ss. County of 1 hereby certify that 1 know or have satisfactory evidence that CHRI STENA P FE I FER is the person(s) who appeared before me, and said person(s) acknowledged that l!ftk, she, Oh signed this instrument and acknowledged it to be ((Its/, her, il{e(r4 free and voluntary act for the uses and purposes mentioned in this instrument. Dated 9/2 r Notary Seal `g a(flff•o rt , e` s M. Ana re N Notary Public in and for the State of Washington ' • ., fQ. P OAR v Printed Name , PUgl.% , �' : v' • y � yP 1,':• a •• �O ■ c 3 residing at VA Imo Qo - cv �1ASrltti 1-419 Cs,� •S , OF p � C `l cv My appointment expires VY l f O3 - 0 C7 N notaryi 12/96 J J• • RIGHT OF WAY FROM PARCEL NO. 0380900045 THE EAST 12 FEET OF TRACT A OF KING COUNTY SHORT PLAT NUMBER 1076020, AS RECORDED UNDER RECORDING NUMBER 7612120623, IN KING COUNTY, WASHINGTON, BEING A PORTION OF LOT 4, DICK BALCH ADDITION NUMBER 1, ACCORDING TO THE PLAT THEREOF RECORDED IN VOLUME 99 OF PLATS, PAGES 61 AND 62, IN KING COUNTY, WASHINGTON. CONTAINING 1,200 SQUARE FEET, MORE OR LESS. SURVEYORS NOTE: THE CENTERLINE OF PACIFIC HIGHWAY SOUTH (SR 99) IS BASED ON THE RIGHT OF WAY PLANS FOR SR 99 HOV LANES PHASE Z ON FILE WITH THE CITY OF FEDERAL WAY PUBLIC WORKS. EXHIBIT A c: at CNI a 'Q C4 ��E M. I O of w 'u y 1, 4 j e r 1 el • A _ _33154 � EXPIRES 10 -01- 0 07. - 04 -02. parcel 0380900045.doc E A R T H T E C H A LIMO INTERNATIONAL LTD. COMPANY • 5 I to c ^I IO N I 0• N 0 PROPERTY LINE _ 21 z \\ ......, 0 0) • PROPOSED ROW 4 4 vi I 4i w N.T.S. 4- • v a TRACTA _ z I z K.C.S.P. 1076020 U TAX LOT NUMBER li N • F4 0380900045 U' '= Q r: I co CZ C l. ^ CZ w • a sa VI I bi N Clef PROPOSED ROW TAKE I cv AREA a 1,200 S.F. \ 11 • Cy EXISTING 8. ROW PROPERTY UNE I.. i 1 j 50' I -- EXISTING 62' ROW C/L EXHIBIT MAP PARCEL 0380900045 ROW TAKE DEC. 2001 ACAD No. 0380900045 E A R T H T E C H 10800 N.E. 8th St. 720 S. 333 St.' Ste.200 7th Floor Federal Way, WA 98003 Bellevue, WA 98004 253 838 -6202 425 455 -9494 PACIFIC NORTHWEST TITLE Company of Washington, Inc. September 27, 2002 THE CITY OF FEDERAL WAY ATTN: TONIA MERGENTHAL P.O. BOX 9718 FEDERAL WAY, WA 98063 RE: Our Escrow Number: 45071419 PFEIFER /THE CITY OF FEDERAL WAY Property: PARCEL #5 PACIFIC HWY S HOV LANES PH II, KING COUNTY, W Dear Ms. Mergenthal: The above- referenced escrow transaction has been completed. We enclose the following: 1. FINAL Closing Statement - RETAIN FOR TAX PURPOSES 2. FIRPTA Certification - RETAIN FOR TAX PURPOSES We appreciate this opportunity to have been of service to you. Sin - rely, ANN ADKINS ADMINISTRATIVE ESCROW ASSISTANT TO L. DIAN MAXWELL, EVP /ESCROW MANAGER (206) 343 -1348 Enc. 215 Columbia Street r Seattle, WA 98104 -1511 r (206) 622 -1040 A Fax: (206) 343 -1358 http: / /pnwt.com f l Date: 27- Sep -02 Time: 08:53 AM BUYER(S) FINAL CLOSING STATEMENT Prepared by PACIFIC NORTHWEST TITLE COMPANY 215 COLUMBIA STREET, 4TH FLOOR SEATTLE, WASHINGTON 98104 -1511 (206) 622 -1040 OR 1- 800 - 634 -5544 Buyer(s): THE CITY OF FEDERAL WAY Seller(s): MERLE F. PFEIFER Lender: Property: PARCEL #5 PACIFIC HWY S HOV LANES PH II KING COUNTY WA Closing Date: 09/26/2002 Proration Date: 09/26/2002 Escrow Officer: DIAN MAXWELL File Number: 45071419 DEBIT CREDIT SALES PRICE 29,500.00 DEPOSITS: ADDITIONAL DEPOSIT FROM BUYER 30,052.40 REMITTER: THE CITY OF FEDERAL WAY WK CHG PREV PAID 359.04 REMITTER: THE CITY OF FEDERAL WAY ESCROW CHARGES: ESCROW CHARGES 462.40 PAYEE: PACIFIC NORTHWEST TITLE EXTRA WORK CHARGE 4.35 PAYEE: PACIFIC NORTHWEST TITLE COURIER /EXPRESS /WIRE FEES 60.00 PAYEE: PACIFIC NORTHWEST TITLE TITLE CHARGES: OWNER'S TITLE POLICY 359.04 Liability amount (OTP) $29,500.00 PAYEE: PACIFIC NORTHWEST TITLE RECORDING FEES /TRANSFER CHARGES: RECORDING FEES Deed amount $25.65 25.65 PAYEE: PACIFIC NORTHWEST TITLE SUBTOTALS: 30,411.44 30,411.44 BALANCE DUE FROM BUYER: 0.00 TOTALS: 30,411.44 30,411.44 PACIF NORT . ST.TITLE COMPANY i BY: ihh ,Ai *li ' /4 '/ 0 FIRPTA CERTIFICATION - INDIVIDUAL SELLER Section 1445 of the Internal Revenue Code provides that a purchaser of a U.S. real property interest withhold tax if the seller is a foreign person. In order to inform the transferee (buyer) that withholding of tax is not required upon disposition of a U.S. real property interest, I /WE, MERLE F. PFEIFER hereby certify the following: 1. I /WE am not a nonresident alien for purposes of U.S. income taxation; 2. My U.S. taxpayer identifying number is * c .. t38 t2 4.1 3. My home address is * yn1s Iv-A; Aut gr . * fc &t Woo a fiJA 28 27.0 I understand that this certification may be disclosed to the Internal Revenue Service by the transferee and that any false statement I have made here could be punished by fine, imprisonment, or both. Under penalties of perjury, I declare that I have examined this certification; and to the best of my knowledge and belief, it is true, correct and complete. ME E F . FEI ER • -ol N, ' oor.o 1.2( U ° � S - �! pfie POLICY OF TITLE INSURANCE ISSUED BY c� PACIFIC NORTHWEST TITLE INSURANCE COMPANY, INC. SUBJECT TO THE EXCLUSIONS FROM COVERAGE, THE EXCEPTIONS FROM COVERAGE CONTAINED IN SCHEDULE B AND THE CONDITIONS AND STIPULATIONS, PACIFIC NORTHWEST TITLE INSURANCE COMPANY, INC., a Washington 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, Pacific Northwest Title Insurance Company, Inc. has caused this policy to be signed and sealed by its duly authorized officers as of the Date of Policy shown in Schedule A. �� ' , ` Pre lde� , , PACIFIC NORTHWEST TITLE Coun .!'. -. . - , ,-- Insurance Company, Inc. �t0ae In Authorized Signato if r appPOaATp o J 1 ; PACIFIC NORTHWEST TITLE 1 ; SE j Comp Seattle. Washington b v a4sNING.om City, State 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. 0 -1093- 139569 ALTA OWNER'S POLICY — 10 -17 -92 CLUSIONS FROM COVERAGE Continu (cominued and concluded from front side of Policy Fame) 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 t,eing 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 judgement or lien creditor. • CONDITIONS AND STIPULATIONS 1. DEFINITION OF TERMS. may take any appropriate action under the terms of this policy, whether or not it The following terms when used in this policy mean: 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, (a) "insured ": the insured named in Schedule A, and, subject to any rights or it shall do so diligently. 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 (c) Whenever the Company shall have brought an action or interposed a from purchase including, but not limited to, heirs, distributees, devices, survivors, defense as required or permitted by the provisions of this policy, the Company may personal representatives, next of kin, or corporate or fiduciary successors. 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 (b) "insured claimant ": an insured claiming Toss or damage.. judgment or order. (c) "knowledge" or "known ": actual knowledge, not constructive knowledge (d) In all cases where this policy permits or requires the Company to prosecute or notice which may be imputed to an insured by reason of the public records as or provide for the defense of any action or proceeding, the insured shall secure to defined in this policy or any other records which impart constructive notice of matters the Company the right to so prosecute or provide defense in the action or affecting the land. proceeding, and all appeals therein, and permit the Company to use, at Its option, (d) "land ": the land described or referred to in Schedule A, and improvements the name of the insured for this purpose. Whenever requested by the Company, the affixed thereto which by law constitute real property. The term Nand" does not insured, at the Company's expense, shall give the Company all reasonable aid (i) in Include any property beyond the lines of the area described or referred to in Schedule any action or proceeding, securing evidence, obtaining witnesses, prosecuting or A, nor any right, title, interest, estate or easement in abutting streets, roads, avenues, defending the action or proceeding, or effecting settlement, and (ii) in any other alleys, lanes, ways or waterways, but nothing herein shall modify or limit the extent lawful act which in the opinion of the Company may be necessary or desirable to to which a right of access to and from the land is insured by this policy. establish the title to the estate or interest as insured. If the Company is prejudiced (e) "mortgage ": mortgage, deed of trust, trust deed, or other security by the failure of the insured to furnish the required cooperation, the Company's instrument. 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 (f) "public records ": records established under state statutes at Date of Policy or matters requiring such cooperation. 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 5. PROOF OF LOSS OR DAMAGE. the Exclusions From Coverage, "public records" shall also include environmental In addition to and after the notices required under Section 3 of these Conditions protection liens filed in the records of the clerk of the United States district court and Stipulations have been provided the Company, a proof of loss or damage signed for the district in which the land is located. and sworn to by the insured claimant shall be furnished to the Company within 90 (g) "unmarketability of the title ": an alleged or apparent matter affecting the days after the insured claimant shall ascertain the facts giving rise to the loss or title to the land, not excluded or excepted from coverage, which would entitle a damage. The proof of loss or damage shall describe the defect in, or lien or purchaser of the estate or interest described in Schedule A to be released from the encumbrance on the title, or other matter insured against by this policy which obligation to purchase by virtue of a contractual condition requiring the delivery of constitutes the basis of loss or damage and shall state, to the extent possible, the marketable title. 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, 2. CONTINUATION OF INSURANCE AFTER CONVEYANCE OF TITLE. the Company's obligations to the insured under the policy shall terminate, including The coverage of this policy shall continue in force as of Date of Policy in favor any liability or obligation to defend, prosecute, or continue any litigation, with regard of an insured only so long as the insured retains an estate or interest in the land, or to the matter or matters requiring such proof of loss or damage. holds an indebtedness secured by a purchase money mortgage given by a purchaser In addition, the insured claimant may reasonably be required to submit to form the insured, or only so long as the insured shall have liability by reason of examination under oath by any authorized representative of the Company and shall covenants of warranty made by the insured in any transfer of conveyance of the produce for examination, inspection and copying, at such reasonable times and estate or interest. This policy shall not continue in force in favor of any purchaser places as may be designated by any authorized representative of the Company, all from the insured of either (I) and estate or interest in the land, or (ii) an indebtedness records, books, ledgers, checks, correspondence and memoranda, whether bearing secured by a purchase money mortgage given to the insured. a date before or after Date of Policy, which reasonably pertain to the loss or damage. 3. NOTICE OF CLAIM TO BE GIVEN BY INSURED CLAIMANT. Further, if requested by any authorized representative of the Company, the insured claimant shalt grant its permission, in writing, for any authorized representative of The insured shall notify the Company promptly in writing (i) in case of any the Company to examine, inspect and copy all records, books, ledgers, checks, litigation as set forth in Section 4(a) below, (ii) in case knowledge shall come to an correspondence and memoranda in the custody or control of a third party, which insured hereunder of any claim of title or interest which is adverse to the title to the reasonably pertain to the Toss or damage. All information designated as confidential estate or interest, as insured, and which might cause loss or damage for which the by the insured claimant provided to the Company pursuant to this Section shall not Company may liable by virtue of this policy, or (iii) if title to the estate or interest, be disclosed to others unless, in the reasonable judgment of the Company, it is as insured, Is rejected as unmarketable. If prompt notice shall not be given to the necessary in the administration of the claim. Failure of the insured claimant to submit Company, then as to the insured all liability of the Company shall terminate with for examination under oath, produce other reasonably requested information or grant regard to . the matter or matters for which prompt notice is required; provided, permission to secure reasonably necessary information from third parties as required however, that failure to notify the Company shall in no case prejudice the rights of in this paragraph shall terminate any liability of the Company under this policy as any Insured under this policy unless the Company shall be prejudiced by the failure to that claim. and then only to the extent of the prejudice. 6. OPTIONS TO PAY OR OTHERWISE SETTLE CLAIMS: TERMINATION OF 4. DEFENSE AND PROSECUTION OF ACTIONS: DUTY OF INSURED LIABILITY. CLAIMANT TO COOPERATE. In case of a claim under this policy, the Company shall have the following (a) Upon written request by the insured and subject to the options contained additional options: in Section 6 of these Conditions and Stipulations, the Company, at its own cost (a) To Pay or Tender Payment of the Amount of Insurance. 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 To pay or tender payment of the amount of insurance under this policy together insured, but only as to those stated causes of action alleging a defect, lien or with any cost, attorneys' fees and expenses incurred by the insured claimant, which encumbrance or other matter insured against by this policy. The Company shall were authorized by the Company, up to the time of payment or tender of payment have the right to select counsel of its choice (subject to the right of the insured to and which the Company is obligated to pay. object for reasonable cause) to represent the insured as to those stated causes of Upon the exercise by the Company of this option, all liability and obligations action and shall not be liable for and will not pay the fees of any other counsel. The to the insured under this policy, other than to make the payment required, shall Company will not pay any fees, costs or expenses incurred by the insured in the terminate, including any liability or obligation to defend, prosecute, or continue defense of those causes of action which allege matters not insured against by this any litigation, and the policy shall be surrendered to the Company for cancellation. policy. (b) To Pay or Otherwise Settle With Parties Other than the Insured or With (b) The Company shall have the right, at its own cost, to institute and prosecute the Insured Claimant. any action or proceeding or to do any other act which in its opinion may be necessary (i) to pay or otherwise settle with other parties for or in the name of an or desirable to establish the title to the estate or interest, as insured. The Company insured claimant any claim insured against under this policy, together with any costs, (continued and concluded on last page of this policy) • CONDITIONS AND STIPULATIONS Continued (continued and concluded from reverse side of Policy Face) attorneys' fees and expenses incurred by the insured claimant which were 12. PAYMENT OF LOSS. authorized by the Company up to the time of payment and which the Company is (a) No payment shall be made without producing this policy for endorsement obligated to pay; or of the payment unless the policy has been lost or destroyed, in which case proof of (ii) to pay or otherwise settle with the insured claimant the loss or damage loss or destruction shall be furnished to the satisfaction of the Company. provided for under this policy, together with any costs, attorneys' fees and expenses (b) hen liability and the extent of Toss or damage has been definitely y g s bee de tely fixed in incurred by the insured claimant which were authorized by the Company up to the accordance with these Conditions and Stipulations, the loss or damage shall be time of payment and which the Company is obligated to pay. payable within 30 days thereafter. 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 13. SUBROGATION UPON PAYMENT OR SETTLEMENT. for the claimed toss or damage, other than the payments required to be made, shall (a) The Company's Right of Subrogation. terminate, including any liability or obligation to defend, prosecute or continue any Whenever the Company shall have settled and paid a claim under this policy, litigation. all right of subrogation shall vest in the Company unaffected by any act of the 7. DETERMINATION, EXTENT OF LIABILITY AND COINSURANCE. insured claimant. This policy is a contract of indemnity against actual monetary loss or damage The Company shall be subrogated to and be entitled to all rights and remedies sustained or incurred by the insured claimant who has suffered Toss or damage by which the insured claimant would have had against any person or property in respect reason of matters insured against by this policy and only to the extent herein to the claim had this policy not been issued. If requested by the Company, the described. 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 (a) The liability of the Company under this policy shall not exceed the least of: claimant shall permit the Company to sue, compromise or settle in the name of the (i) the Amount of Insurance stated in Schedule A; or, insured claimant and to use the name of the insured claimant in any transaction or (ii) the difference between the value of the insured estate or interest as litigation involving these rights or remedies. insured and the value of the insured estate or interest subject to the defect lien or If a payment on account of a claim does not fully cover the loss of the insured encumbrance insured against by this policy. claimant, the Company shall be subrogated to these rights and remedies of the (b) In the event the Amount of Insurance stated in Schedule A at the Date of proportion which the Company's payment bears to the whole amount of the loss. Policy is less than 80 percent of the value of the insured estate or Interest or if If loss should result from any act of the insured claimant, as stated above, subsequent to the Date of Policy an Improvement is erected on the land which that act shall not void this policy, but the Company, in that event, shall be required increases the value of the insured estate or interest by at least 20 percent over the to pay only that part of any losses insured against by this policy which shall exceed Amount of Insurance stated Schedule A, then this Policy is subject to the following: the amount, if any, lost to the Company by reason of the impairment by the insured i where no subsequent improvement has been made, as to any claimant of the Company's right of subrogation. (7 q P Y Partial loss, the Company shall only pay the loss pro rata in the proportion that the amount (b) The Company's Rights Against Non - insured Obligors. of insurance at Date of Policy bears to the total value of the insured estate or interest The Company's right of subrogation against non - insured obligors shall exist at Date of Policy; or and shall include, without limitation, the rights of the insured to indemnities, (ii) where a subsequent improvement has been made, as to any partial guaranties, other policies of insurance or bonds, notwithstanding any terms or loss, the Company shall only pay the loss pro rata in the proportion that 120 percent conditions contained in those instruments which provide for subrogation rights by of the Amount of Insurance stated in Schedule A bears to the sum of the Amount of reason of this policy. 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 14. ARBITRATION. expenses for which the Company is liable under this policy, and shall only apply to Unless prohibited by applicable law, either the Company or the insured may that portion of any loss which exceeds, in the aggregate, 10 percent of the Amount demand arbitration pursuant to the Title Insurance Arbitration Rules of the American of Insurance stated in Schedule A. 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 (c) The Company will pay only those costs, attorneys' fees and expenses to this policy, any service of the Company in connection with its issuance or the incurred in accordance with Section 4 of these Conditions and Stipulations. breach of a policy provision or other obligation. All arbitrable matters when the 8. APPORTIONMENT. 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 If the land described in Schedule A consists of two or more parcels which are in excess of $1,000,000 shall be arbitrated only when agreed to by both the Company not used as a single site, and a loss is established affecting one or more of the and the insured. Arbitration pursuant to this policy and under the Rules in effect on parcels but not all, the loss shall be computed and settled on a pro rata basis as if the date the demand for arbitration is made or, at the option of the insured, the the amount of insurance under this policy was divided pro rata as to the value on Rules in effect at Date of Policy shall be binding upon the parties. The award may Date of Policy of each separate parcel to the whole, exclusive of any improvements include attorneys' fees only if the laws of the state in which the land is located made subsequent to Date of Policy, unless a liability or value has otherwise been permit a court to award attorneys' fees to a prevailing party. Judgment upon the agreed upon as to each parcel by the Company and the insured at the time of the award rendered by the Arbitrator(s) may be entered in any court having jurisdiction issuance of this policy and shown by an express statement or by an endorsement thereof. attached to this policy. The law of the situs of the land shall apply to an arbitration under the Title 9. LIMITATION OF LIABILITY. Insurance Arbitration Rules. (a) If the Company establishes the title, or removes the alleged defect, lien or A copy of the Rules may be obtained from the Company upon request. encumbrance, or cures the lack of a right of access to or from the land, or cures 15. LIABILITY LIMITED TO THIS POLICY: POLICY ENTIRE CONTRACT. 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 (a) This policy together with all endorsements, if any, attached hereto by the shall have fully performed its obligations with respect to that matter and shall not Company is the entire policy and contract between the insured and the Company. be liable for any loss or damage caused thereby. In interpreting any provision of this policy, this policy shall be construed as a whole. (b) In the event of any litigation, Including litigation by the Company or with (b) Any claim of loss or damage, whether or not based on negligence, and the Company's consent, the Company shall have no liability for loss or damage which arises out of the status of the title to the estate or interest covered hereby or until there has been a final determination by a court of competent jurisdiction, and by any action asserting such claim, shall be restricted to this policy. disposition of all appeals therefrom, adverse to the title as insured. (c) No amendment of or endorsement to this policy can be made except by a (c) The Company shall not be liable for loss or damage to any insured for writing endorsed hereon or attached hereto signed by either the President, a Vice liability voluntarily assumed by the insured in settling any claim or suit without the President, the Secretary, an Assistant Secretary, or validating officer or authorized prior written consent of the Company. signatory of the Company. 10. REDUCTION OF INSURANCE: REDUCTION OR TERMINATION OF 16. SEVERABILITY. LIABILITY. In the event any provision of this policy is held invalid or unenforceable under All payments under this policy, except payments made for costs, attorneys' applicable law, the policy shall be deemed not to include that provision and all fees and expenses, shall reduce the amount of the insurance pro tanto. other provisions shall remain in full force and effect. 11. LIABILITY NONCUMULATIVE. 17. NOTICES, WHERE SENT. It is expressly understood that the amount of Insurance under this policy shall All notices required to be given the Company and any statement in writing be reduced by any amount the Company may pay under any policy insuring a required to be furnished the Company shall include the number of this policy and mortgage to which exception is taken in Schedule B or to which the insured has shall be addressed to the Company at 215 Columbia Street, Seattle, Washington agreed, assumed, or taken subject, or which is hereafter executed by an insured 98104 -1511. 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. Standard Coverage PACIFIC NORTHWEST TITLE COMPANY OF WASHINGTON, INC. A.L.T.A. OWNER'S POLICY SCHEDULE A Order No.: 409280 Policy No.: 1093 - 139569 Policy Date: September 26, 2002 Policy Amount: $29,500.00 at 14:32 p.m. 1. Name of Insured: CITY OF FEDERAL WAY, a Washington 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: CITY OF FEDERAL WAY, a Washington municipal corporation 4. The land referred to in this Policy is described as follows: The east 12.00 feet of Lot A of King County Short Plat Number 1076020, as recorded under Recording Number 7612120623, in King County, Washington, being a portion of Lot 4, Dick Balch Addition Number 1, according to the plat thereof recorded in Volume 99 of Plats, pages 61 and 62, in King County, Washington. Standard Coverage PACIFIC NORTHWEST TITLE COMPANY OF WASHINGTON, INC. A.L.T.A. OWNER'S POLICY SCHEDULE B Policy No.: 1093 - 139569 This policy does not insure against loss or damage by reason of the following: GENERAL EXCEPTIONS: 1. Rights or claims of parties in possession not shown by the public records. 2. Easements, or claims of easements, not shown by the public record. 3. Encroachments, overlaps, boundary line disputes, or other matters which would be disclosed by an accurate survey or inspection of the premises. 4. Any lien, or right to a lien, for services, labor or material heretofore or hereafter furnished, imposed by law and not shown by the public records, or liens under the Workmen's Compensation Act not shown by the public records. 5. Any title or rights asserted by anyone including but not limited to persons corporations, governments or other entities, to tide lands, or lands comprising the shores or bottoms of navigable rivers, lakes, bays, ocean or sound, or lands beyond the line of the harbor lines as established or changed by the United States Government. 6. (a) Unpatented mining claims; (b) reservations or exceptions in patents or in Acts authorizing the issuance thereof; (c) water • rights, claims or title to water. 7. Taxes or special assessments which are not shown as existing liens by the public records. 8. Any service, installation, connection, maintenance, capacity, or construction charges for sewer, water, electricity or garbage removal. 9. Indian tribal codes or regulations, Indian treaty or aboriginal rights, including, but not limited to, easements or equitable servitudes. SPECIAL EXCEPTIONS: As on Schedule B, attached. Policy No.: 1093 - 139569 SCHEDULE B Page 2 SPECIAL EXCEPTIONS: 1. EASEMENT AND THE TERMS AND CONDITIONS REFERENCED THEREIN, INCLUDING, BUT NOT LIMITED TO, THE FOLLOWING: GRANTEE: Puget Sound Power & Light Company, a Washington corporation PURPOSE: To construct, operate, maintain, repair, replace and enlarge one or more electric transmission and /or distribution lines AREA AFFECTED: Northerly 30 feet.of said premises RECORDED: April 8, 1977 RECORDING NUMBER: 7704080631 2. EASEMENT AND THE TERMS AND CONDITIONS REFERENCED THEREIN, INCLUDING, BUT NOT LIMITED TO, THE FOLLOWING: GRANTEE: Sun Outdoor Advertising, Inc., a Washington corporation PURPOSE: Operating a commercial outdoor advertising structure AREA AFFECTED: Portion of said premises RECORDED: November 3, 1986 RECORDING NUMBER: 8611030748 3. COVENANTS, CONDITIONS, RESTRICTIONS AND EASEMENTS CONTAINED IN SHORT PLAT, COPY ATTACHED: RECORDED: 4 December 13, 1976 RECORDING NUMBER: 7612130623 4. RESTRICTIONS CONTAINED ON THE FACE OF THE PLAT AS FOLLOWS: No lot or portion of a lot in this plat shall be divided and sold or resold, or ownership changed ed or transferred whereby the ownership of any portion of this plat shall be less than the area required for the use district in which it is located. 5. Right of the public to make necessary slopes for cuts or fills upon said premises in the reasonable original grading of streets, avenues, alleys and roads, as dedicated in the plat. END OF SCHEDULE B