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HomeMy WebLinkAboutPK10-217 - Original - Charles R. Huse Testamentary Trust - Purchase of 13417 SE 216th St - 06/25/2010 Records Ma ", gerne�i KEN - - Document WASMINGTON _ e CONTRACT COVER SHEET This is to be completed by the Contract Manager prior to submission to City Clerks Office. All portions are to be completed. If you have questions, please contact City Clerk's Office. Vendor Name: Rose Marie Lehmann and Charlene H. Nelson as co trustees of the Charles R. Huse Testamentary Trust; and the heirs and devisees of Charlotte E. Huse, deceased Vendor Number: ID Edwards Number Contract Number: PK/o _ 0?- / 7 This is assigned by City Clerk's Office Project Name: Real Estate Purchase & Sale Agreement Description: ❑ Interlocal Agreement ❑ Change Order ❑ Amendment ❑ Contract ® Other: Contract Effective Date: 6/25/2010 Termination Date: Contract Renewal Notice (Days): Indefinite Number of days required notice for termination or renewal or amendment Contract Manager: B. Levenhagen Department: Parks Detail: (i.e. address, location, parcel number, tax id, etc.): 13417 SE 2161h Street, Kent WA 98042; KIn�County tax parcel numbers 1022059143 and 1022059011 S Public\RecordsManagement\Forms\ContractCover\adcc7832 1 11/08 bll9 REAL ESTATE PURCHASE AND SALE AGREEMENT This Agreement is entered between the CITY OF KENT, a ashington municipal corporation, whose mailing address is 220 4th Ave. S, Kent Washington 98032, ("Buyer"), and ROSE MARIE LEHMANN AND CHARLENE 0 . NELSON, as co trustees of the Charles R. Huse Testamentary Trust; and the heirs and devisees of Charlotte E. Huse, deceased, whose mailing address is 13417 SE 216" Street, Kent, Washington, 98042 ("Seller"), for the sale and purchase of real property as fol lows 1. PROPERTY. The property, including all improvements and appurtenances situated thereon, which Buyer agrees to buy and Seller agrees to sell, is approximately 32 acres comprised of King County tax parcel numbers 1022059143 and 1022059011, which are legally described in Exhibit A, attached hereto and incorporated herein by this reference ("Property"). Maps indicating the locations of the Properties are also attached as Exhibit 8, incorporated herein by this reference. 2. EARNEST MONEY. Upon mutual acceptance of this Agreement, Buyer shall deposit with Pacific Northwest Title Company, 116 Washington Avenue North, Kent, Washington 98032,("Closing Agent"), Fifteen Thousand and No/100 Dollars ($15,000) in the form of a City of Kent Purchase Order as refundable earnest money. 3. PURCHASE PRICE. The purchase price is ONE MILLION FIVE HUNDRED FIFTY THOUSAND AND NO/100 DOLLARS ($1,550,000.00). The purchase price shall be payable as follows: (a) ONE MILLION and NO/100 DOLLARS ($1,000,000.00) in cash at Closing; (b) FIVE HUNDRED THIRTY-FIVE THOUSAND SIX HUNDRED and NO/100 DOLLARS ($535,600.00) secured by a promissory note and deed of trust, the form of which are attached and incorporated as Exhibits C and D; and (c) FOURTEEN THOUSAND FOUR HUNDRED and NO/100 DOLLARS ($14,400.00) in consideration for the Lease described in Section 9. 4. CONTINGENCIES. This Agreement is contingent upon the following: (a) Acceptance of the terms of this Agreement by the Kent City Council. �- ` Buyer's Initia/�`' Seller's Initials Seller's Initials( `t REAL ESTATE PURCHASE AND SALE AGREEMENT 2010 —Page 1 of 49 (between City of Kent and Rose M.Lehmann and Charlene M Nelson) �c ,1� Lt • (b) Buyer's review and approval of the title report according to Section 5(b). (c) Buyer's review and approval of Seller`s information contained in the Real Property Transfer Disclosure Statement ("Disclosure Statement") the form of which is set forth in Exhibit E. Seller shall complete one form for each dwelling unit or specify which dwelling unit is being referenced in the form. The "Disclosure Statement" shall be completed by the Seller within ten (10) days from the date of mutual acceptance of the Agreement. (d) Buyer obtaining grant funding for the Purchase Price in Section I� 3 prior to Closing. 2 �I (e) A Feasibility Study as follows: 1k U 1,M 1. ZU "1 3 0120 10 �j t (i) Buyer shall have to determine, in Buyer's sole and absolute discretion, if the real property is feasible for investment and/or development by Buyer. Buyer agrees to assume all liability for and to defend, indemnify and save Seller harmless from all liability and expense (including reasonable attorneys' fees) in connection with all claims, suits and actions of every name, kind and description brought against Seller or its agents or employees by any person or entity as a result of or on account of injuries or damages to persons, entities and/or property received or sustained, arising out of, in connection with or as a result of the acts or omissions of Buyer or its agents or employees in exercising its rights under the right of entry granted in this Section, except for claims caused by Seller's negligence. (ii) Buyer's feasibility study may include (but is not limited to) a Phase I and/or Phase II environmental assessment, utilities availability and capacity, access availability, zoning, preliminary architectural and engineering studies, marketing feasibility. Should a Phase II be necessary, Buyer shall give Seller a copy of the Phase I report and scope of work for Phase II. (iii) A Phase I environmental assessment generally will consist of a review of title of ownership and land use, review of geologic and hydrologic maps of the area, review of federal and state databases for known hazardous water generators or contaminated sites and a site visit If the Phase I review reveals the potential of a contaminated site, a Phase II environmental assessment may be conducted which generally will consist of on-site sampling, including the digging or boring of test holes for soil samples. BY EXECUTING THIS AGREEMENT, SELLER HEREBY AUTHORIZES BUYER A RIGHT OF ENTRY ON TO THE PROPERTY FOR THE PURPOSE OF CONDUCTING THIS FEASIBILITY STUDY INCLUDING A PHASE I. AND IF NECESSARY, A PHASE II ENVIRONMENTAL ASSESSMENT. SELLER WILL BE NOTIFIED IF A PHASE II ENVIRONMENTAL AS SSMENT IS TO BE CONDUCTED. Buyer's Initia Seller's Initials / Seller`s Initials_Lo REAL ESTATE PURCHASE AND SALE AGREEMENT 2010 -Page 2 of 49 (between C'ny of Kent and Rose M Lehmann and Charlene M Nelson) (iv) Buyer agrees to conduct its feasibility study at its sole cost and expense; and if Buyer does not remove the feasibility contingency on or before the expiration of the feasibility period, then Buyer also agrees, if requested by Seller, to deliver to Seller copies of all information and documentation obtained or developed by Buyer in connection with its feasibility study. Should any of the contingencies in 4(a) — 4(d) above not be satisfied by their deadlines, then this Agreement shall terminate and neither Buyer nor Seller shall have any further rights, duties or obligations hereunder, except that the refundable earnest money held by Pacific Northwest Title shall be immediately returned to Buyer. If Buyer fails to notify Seller in writing of the removal of the contingencies in 4(e), above then this Agreement shall be terminated, and neither Buyer nor Seller shall have any further rights, duties or obligations hereunder, other than the obligation of Buyer to indemnify and hold Seller harmless set forth in subsection 4(e), Buyer agrees to return the Property to its original state (i.e., fill all boring holes, etc.), and the refundable earnest money shall be returned. S. TITLE (a) Conveyance. At the Closing, Seller shall convey to Buyer fee simple title to the Parcel by duly executed and acknowledged statutory warranty deed (the "Deed"), free and clear of all defects and encumbrances and subject only to those exceptions that Buyer approves pursuant to this Agreement (the "Permitted Exceptions"). (b) Preliminary commitment. (i) Buyer shall order a preliminary commitment for owner's standard coverage policy of title insurance in the amount of the purchase price in Section 3 to be issued by Pacific Northwest Title Company, whose address and telephone number is 116 Washington Avenue North, Kent, Washington 98032, (253) 520-0805 (the "Title Company") and accompanied by copies of all documents referred to in the commitment (the "Preliminary Commitment") Buyer shall advise Seller by written notice what exceptions to title, if any, are disapproved by Buyer ("Disapproved Exceptions") within thirty (30) days of receipt of the Preliminary Commitment (and legible copies of all exceptions to title shown in the Preliminary Commitment) or thirty (30) days of mutual acceptance, whichever is longer. Seller will have fifteen (15) days after receipt of Buyer's notice to give Buyer notice that (i) Seller will remove Disapproved Exceptions or (11) Seller elects not to remove Disapproved Exceptions. If Seller fails to give Buyer notice before the expiration of the fifteen (15) day period, Seller will be deemed to have elected not to remove Disapproved Exceptions. Buyer's Initials Seller's Initials Seller's Initials REAL ESTATE PURCHASE AND SALE AGREEMENT 2010 —Page 3 of 49 (between City of Kent and RoseM.Lehmann and CharleneM Nelson) k 1 • • (ii) If Seller elects not to remove any nonmonetary Disapproved Exceptions, Buyer will have until the expiration of the feasibility study period to notify Seller of Buyer's election either to proceed with the purchase and take the Property subject to those exceptions, or to terminate this Agreement within fifteen (15) business days after receipt of Seller's notice. If Buyer elects to terminate this Agreement under this Section, the escrow will be terminated, the refundable earnest money will be returned to Buyer, all documents and other funds will be returned to the party who deposited them, and neither party will have any further rights or obligations under this Agreement except as otherwise provided herein. If this Agreement is terminated through no fault of Seller, then Buyer shall pay any costs of terminating the escrow and any cancellation fee for the Preliminary Commitment. (iii) If exceptions are added to the title after receipt of the Preliminary Commitment and prior to Closing (Supplemental Preliminary Commitment), Buyer shall advise Seller by written notice what new exceptions to title are Disapproved Exceptions. Buyer shall give such notice within fifteen (15) days of receipt of the Supplemental Preliminary Commitment (and legible copies of all exceptions to title shown in the Supplemental Preliminary Commitment). Seller's response and any response from Buyer will be under the same terms as section (i) and (u) above. (c) Title policy. Seller shall cause the Title Company to issue to Buyer at Closing standard coverage owner's policy of title insurance insuring Buyer's title to the Property in the full amount of the Purchase Price in Section 3 subject only to the Permitted Exceptions (the "Title Policy"). The Title Policy must be dated as of the Closing date. 6. CLOSING COSTS AND PRO-RATIONS. The cost of escrow shall be shared equally between Buyer and Seller, except those fees which are expressly limited by Federal Regulation. Seller shall pay for excise tax and revenue stamps. Taxes for the current year, rents, interest, association, condominium and/or homeowner's fees, water and other utility charges, if any, shall be pro-rated as of date of Closing unless otherwise agreed. 7. CLOSING OF THE SALE. WITH THE UNDERSTANDING THAT TIME IS OF THE ESSENCE FOR THIS AGREEMENT: The sale shall be closed on or before July 30, 2010, unless the Closing date is extended in writing by mutual agreement of the parties ("Closing"). When notified, the Buyer and Seller will deposit, without delay, in escrow with Closing Agent, all instruments and monies required to complete the transaction in accordance with this Agreement. At Closing all documents will be executed and the sale proceeds will be available for disbursement to the Seller. Buyer's Initials,=T,::��__ Seller's Initials Seller's Initials REAL ESTATE PURCHASE AND SALE AGREEMENT 2010 -Page 4 of 49 (between City of Kent and Rose M.Lehmann and Charlene M.Nelson) C .'t � • S. CASUALTY LOSS. If prior to Closing, improvements on the Property shall be destroyed or materially damaged by fire or other casualty, Buyer shall have the option of terminating the Agreement 9. POSSESSION AND LEASE. (a) Buyer shall be entitled to possession on the first day of the month following Closing, subject to the Lease in (b) below. (b) Seller and Buyer agree to execute at the Closing the Lease attached and incorporated as Exhibit "F". Buyer shall be credited toward the purchase price in Section 3 $14,400 00 for the fair market rental value of the Lease. 10. SEPTIC SYSTEM. Seller represents that the Property is served by private on-site sewage system(s) ("OSS). (a) Seller represents that, to the best of Seller's knowledge, the OSS serving the property does not require repair other than pumping and normal maintenance, does not currently violate any applicable local, state, and federal laws, standards, and regulations; and has no material defects. (b) Seller will retain a licensed on-site system maintainer COSM") to prepare a monitoring and performance inspection report of the OSS ("Operation and Maintenance Reports) and to complete the other requirements of King County Health Code Section 13.60 030. Said inspection shall take place prior to the OSS being pumped under Section 10(e) below. Within fourteen (14) days of mutual acceptance Seller shall deliver to Buyer the Operation and Maintenance Report and a copy of the maintenance records for the OSS, if maintenance records are available. (c) Seller shall deliver to Buyer, within fourteen (14) days of mutual acceptance a copy of the previously recorded notice on title required by King County Health Code Section 13.56.054.A. Within three (3) days of receipt, Buyer shall provide Seller with a signed acknowledgment of receipt of the copy of the recoded notice. (d) At Closing, Buyer shall pay and authorizes the Closing Agent to send to the King County health officer the necessary fee and a signed copy of the notice on title as set forth in King County Health Code Section 13.56.054 A. (e) Seller shall have the OSS inspected and, if necessary, pumped by an OSS service company at Seller's expense. Buyer shall have the right to observe the inspection. Seller shall provide Buyer with three (3) days notice of the date and time of the inspection. Within fourteen (14) days of mutual acceptance, Seller shall provide Buyer with a copy of the inspection report. Buyer's In�tiaJs Seller's Initials Se/less Initials REAL ESTATE PURCHASE AND SALE AGREEMENT 2010 -Page 5 of 49 (between City of Kent and RoseM Lehmann and CharleneM.Nelson) P r • • 11. SELLER'S REPRESENTATIONS. Seller represents as follows: (a) he/she will maintain the property in present or better condition until time of agreed possession, reasonable wear and tear excepted; (b) he/she has no actual knowledge or notice from any governmental agency of any violation of laws relating to the Property except: (c) prior to the Closing date in Section 7, Seller shall either provide Buyer with proof, to Buyer's satisfaction, that any fuel storage tank has previously been decommissioned; or Seller shall decommission the fuel storage tank in accord with all applicable regulations. (d) the Property is not encumbered by any leases. 12. SELLER'S ENVIRONMENTAL REPRESENTATIONS. Seller represents that to the best of his/her knowledge that he/she is not aware of existence of, or has caused or allowed to be caused, any environment condition (including, without limitation, a spill, discharge or contamination) that existed as of and/or prior to the Closing date or any act or omission occurring prior to the Closing date, the result of which may require remedial action pursuant to any federal, state or local law or may be the basis for the assertion of any third party claims, including, claims of governmental entities. This provision shall survive the Closing and be in addition to Seller's obligation for breach of a representation or warranty as may be set forth herein. 13. SELLER'S INDEMNITIES: Seller agrees to indemnify and hold harmless the Buyer, against and in respect of, any and all damages, claims, losses, liabilities, judgments, demands, fees, obligations, assessments, and expenses and costs, including, without limitation, reasonable legal, accounting, consulting, engineering and/or other expenses which may be imposed upon or incurred by Buyer, or asserted against Buyer, by any other party or parties (including, without limitation, a governmental entity), arising out of or in connection with a breach of the representations made in Sections 11 and 12 of this Agreement. This indemnity shall survive the Closing. 14. DEFAULT AND ATTORNEY'S FEES. (a) Buyer's Default. If Buyer defaults hereunder, other than with respect to its obligation to indemnify and hold Seller harmless set forth in subsection 4(e), Seller's sole monetary remedy shall be limited to damages in the liquidated amount of the earnest money previously paid into escrow. Buyer and Seller intend that said amount constitutes liquidat d damages in order to avoid other Buyer's Intttals� Seller's Initials Seller's Initials C� REAL ESTATE PURCHASE AND SALE AGREEMENT 2010 -Page 6 of 49 (between City of Kent and Rose M Lehmann and CharleneM.Nelson) costs and expenses to either party in connection with potential litigation on account of Buyer's default. Buyer and Seller believe said amount to be a fair estimate of actual damages. Buyer's Initials_ Seller's Initials Seller's Initials c Y/` Tx// (b) Seller's Default. If Seller defaults hereunder, Buyer shall have all the rights and remedies available at law or in equity. (c) Attorney's Fees and Costs. In the event of litigation to enforce any of the terms or provisions herein, the prevailing party shall be awarded its reasonable attorney's fees and costs. 15. COMMISSIONS. Seller agrees to pay commission in accordance with any listing or commission agreement to which Seller is a party. The Listing Broker shall have his/her commission apportioned between Listing Broker, John L. Scott and Selling agent, Ed Flanigan, as specified in the listing. Seller hereby assigns to Listing Broker and Selling Broker, as applicable, a portion of Seller's funds in escrow equal to such commissions and irrevocably instructs the Closing Agent to disburse the commissions directly to the Brokers. In any action by Listing or Selling Broker to enforce this Section, the prevailing party is entitled to court costs and reasonable attorney's fees. Seller and Buyer agree that the Brokers are intended third party beneficiaries under this Agreement. 16. NON-MERGER. The terms, conditions, and provisions of this Agreement shall not be deemed merged into the deed, and shall survive the Closing and continue in full force and effect. 17. NOTICES. All notices required or permitted to be given hereunder shall be in writing and shall be sent U.S. certified mail, return receipt requested, personal service, or by facsimile transmission addressed as set forth below: (a) All notices to be given to Buyer shall be addressed as follows: Jeff Watling, Director Parks, Recreation & Community Services Department City of Kent 220 Fourth Avenue South Kent, Washington 98032 Fax Number: (253) 856-6050 (b) All notices to be given to Seller shall be addressed as follows: Rose M. Lehmann Charlene APNelson 13417 SE 216th St 4554 Lake Washington Blvd NE Kent, WA 98042 / Kirkland, WA 98033 Buyer's Initials Seller's Initials L Seller's Initrals_c� REAL ESTATE PURCHASE AND SALE AGREEMENT 2010 -Page 7 of 49 (between Cily of Kent and Rose M.Lehmann and Charlene M Nelson) Either party hereto may, by written notice to the other, designate such other address for the giving of notices as being necessary. All notices shall be deemed given on the day such notice is personally served, or on the date of the facsimile transmission, or on the third day following the day such notice is mailed in accordance with this paragraph. 18. ENTIRE AGREEMENT. This Agreement, including all incorporated exhibits, constitutes the full understanding between Seller and Buyer. There have been no verbal or other agreements that modify this Agreement. 19. BINDING EFFECT AND SURVIVAL. This Agreement shall be binding upon parties hereto and their respective heirs, successors and assigns; and the terms, conditions and provisions of this Agreement shall survive the Closing of this transaction. 20. DATE OF MUTUAL ACCEPTANCE. For the purposes of this Agreement, the date of mutual acceptance of this Agreement shall be the last date on which the parties to this Agreement have executed this Agreement as indicated below. 21. 1031 EXCHANGE. The Seller may complete a 1031 exchange at no expense or delay to Buyer. IN WITNESS WHEREOF, the parties hereto have executed this Agreement on the date set forth below. BUYER: SELLER(S): CITY OF K _ Truste for Charles R. Huse By: Fa y t enta y Trust Su ette ook , Mayor Its May By Dated:� Charlene#.Nelson, Co-Trustee Dated: By:� 6 n/l�l/la Rose M. Lehmann, Co-Trustee Datedl 9 e Tito By: t"'lGU Personal Representative Dated. By: Personal Represen ative Dated: �/,t�u� ly, 2uiv P:\Civil\Files\OpenFiles\1469-HusePropertyAcquisition\Rea IEstatePu rch aseAnd Sa IeAg ree me nt.do cx REAL ESTATE PURCHASE AND SALE AGREEMENT 2010 —Page 8 of 49 (between City of Kent and Rose M. Lehmann and Charlene M.Nelson) EXHIBIT A - PAGE 1 OF 2 THE NORTHWEST QUARTER OF THE S07TH` FST QUARTER OF SECTION 10, TOWNSHIP 22 NORTH, RANGE. S EAST, WILLAMETTE MERIDIAN, IN K:NG COUNTY, WASHINGTON, TOGETHER WITH THAT PORTION DESCRIBED AS FOLLOWS: BEGINNING 4T THE NORTHEAST CORNER OF THE NORTHWEST OUARTER OF THE, SOUTHWEST QUARTER OF SECTION 16, TOWNSHIP 2..2 NORTH, RANGE 5 EAST, WILLAMET F MERIDIAN, IN KING COUNTY, WASHINGTON, THENCE SOUTH 1010'49: WEST A DISTANCE OF 848.65 FEET TO THE TRUE POINT OF BR.^,TKKTNG; THENCE SOLT%II 1010'49" WEST, 479.31 FEET; THENCE SOU':H 89004`32" EAST, 45.00 FFF,T; THENCE NORTH 65053 '35" EAST, 62.16 FEET; TFFNCE NORTH 10045'26" WEST, 264 27 FEET; THENCE NORTH 9057'42" WEST, 178.35 FEET TO THE TRUE FOTNT OF BEGINNING; EXCEPT THAT PORTION THEREOF DESCRIBED AS FOLLOWS. BEGINNING AT THE SOUTHEEST CORNER OF THE NORTHWEST QUARTER OF OF THE SOUTHWEST QUARTER AND RUNNING TRENCH EAST AuOSTG THE SOUTH LINE 40 RODS; THENCE NCRT-A 2D RODS; THENCE WEST 40 RODS; THENCE SOUTH 20 RODS TO THE POINT OF BE1GTKNTNG; EXCEPT THAT PORTION THEREOF DESCRIBED AS FOLLOWS: BEGINNING AT THE NORTHEAST CORNER OF THE NORTHWEST QUARTER OF THE SOUY4MST GJARTER OF SECTION 10, TOWNSH-P 22 NCRTF„ RANGE. 5 FAST, WILLAMETTE MERIDIAN, IN KING COUNTY, WASHINtITON; THENCE SOUTH 1010'42' WEST A DISTANCE OF 30 FEET TO THE TRUE POINT OF BEGINNING; THENCE SOUTH 1010149" WEST, 818.85 FEET; THENCE NORTH 13050'14" WEST, 114,38 »EET; THENCE NORTH 2O76'36" EAST, 119.91 FEET; THENCE NORTH 50C3'27" WEST, 179.40 FEET; THENCE NORTH 5032'16" WEST, 256 57 FEET; THENCE NORTH 8038100" EAST, 155 90 FEET TO A POINT ON THE SOUTH RIGHT OF WAY MARGIN OF SOUTHEAST 216TI, STREET; THBNC ALONG SATn MARGIN S7^TH F9"04114" EAST, 25 00 FEET TO THE TRUP, POINT OF BEGINNING; EXCEPT THE WEST 30 FEET THEREOF CONVEYED TO KING COUNTY FOR 132ND AVENUE SOUTHEAST BY DEED RECORDED UNDER RECORDING NUMBER 141716; EXCEPT THE NORTH 30 FEET THEREOF CONVEYED TO KING COUNTY FOR SOUTHEAST 216TH STREET BY DEED RECORDED UNDER RECORDING NUMBER 2948529; ALSO EXCEPT THE WEST 460 FEET OF THE NORTH 610 FEET OF THE NORTHEAST QUARTER OF THE NORTHWEST QUARTER OF THE SOUTHWEST QUARTER OF SAID SECTION, TOWNSHIP K IVIUIV AND k'_n14GE. ^'"riL LJ1ri1L I V1ll.RriJL ri1VL oriLL riViLL.L1V1L1V 1 LV1V —Page 9 of 49 (between City of Kent and Rose M.Lehmann and Charlene M.Nelson) EXHIBIT A - PAGE 2 OF 2 THE WEST 460 FEST OF THb 41URTH 610 MET of Tad HORTERasT QVA12TUR OF THE NORTHWEST QUARTER OR THE. SOUTFWEST QUARTEP OF SECTION 10, V)W,_19 FIP 22 &'ORT11, RANGE 5 EAST, WILIAMETTE MERILTAN, IN RING COUNTY, WA$HjwGTi3N, FRCFPT COUNTY tCIA�. REAL ESTATE PURCHASE AND SALE AGREEMENT 2010 —Page 10 of 49 (between City of Kent and Rose M.Lehmann and Charlene M Nelson) -` ' hgmipff B AGE 1 O 41{II.MILL{M!{I 111 tn,�tlh![�[ wM Jf i \ ` --f11 T:iHXr 1 raov •ry l {`% ^a G11v 1 77 REAL ESTATE PURCHASE AND SALE AGREEMENT 2010 —Page 11 of 49 (between City of Kent and Rose M Lehmann and Charlene M. Nelson) (� ]SIT B -W GE OF IF W - 1 s , 6 \ REAL ESTATE PURCHASE AND SALE AGREEMENT 2010 —Page 12 of 49 (between 0tv of Kent and Rose M Lehmann and Charlene M Nelson) �� EXHIBIT C PROMISSORY NOTE $535,600. (U.S.) , 2010 Kent, Washington FOR VALUE RECEIVED, the undersigned, CITY OF KENT., a Washington municipal corporation, at 220 Fourth Avenue South, Kent, WA, 98032, ("Borrower") promises to pay to the order of ROSE MARIE LEHMANN AND CHARLENE M. NELSON, as co trustees of the Charles R. Huse Testamentary Trust; and the heirs and devisees of Charlotte E. Huse, deceased, whose mailing address is 13417 SE 216`h Street, Kent, Washington, 98042, ("Lender"), or such other place as Lender may from time to time designate in writing, the sum of Five Hundred Fifty Thousand No/100 Dollars ($535,600), in lawful money of the United States of America. 1. Interest Rate. 1.1 Note Rate. No interest shall accrue on the unpaid principal balance except as provided in 1.2 below. 1.2 Default Rate. Should Borrower default in the payment of any installment when due hereunder or if Borrower defaults in the observance or performance of the Deed of Trust of even date securing this loan, interest shall accrue hereunder from the date of such default at an annual interest rate equal to twelve percent (12%) per annum ("Default Rate"). After the entire principal amount of the loan evidenced hereby shall become due and payable, whether by acceleration, at maturity, or otherwise, this Note shall bear interest at the Default Rate. 1.3 Computation of Interest. Interest shall be computed on the basis of a 365-day year and accrue on the basis of the actual number of days (including the first day but excluding the last day) occurring. 2. Security. This Note is secured by a Deed of Trust, (the "Deed of Trust") of even date made by Borrower in favor of Lender. Borrower agrees to perform and comply with all of the agreements, terms, and conditions of the Deed of Trust. 3. Repayment. This Note shall be due and payable on or before July 30, 2011. 4. Prepayment. Borrower may prepay Borrower's obligations under this Note in full or in part at any time or from time to time without premium or penalty. REAL ESTATE PURCHASE AND SALE AGREEMENT 2010 —Page 13 of 49 (behveen City of Kent and Rose M Lehmann and Charlene M Nelson) 5. Application of Payments. Payments received by Lender from Borrower shall be applied first to interest and then to principal, except that prepayments made under paragraph 3 of this Note shall be applied as designated by Borrower. 6. Acceleration. Upon Borrower's failure to pay any amount payable hereunder as and when due or upon the occurrence of any other default under this Note or the Deed of Trust of even date, Lender may declare, at its sole option and upon fifteen (15) days written notice to Borrower, the entire indebtedness evidenced hereby immediately due and payable in full. Failure to exercise this option or any other right Lender may have shall not constitute a waiver of the right to exercise such option or any other right in the event of any subsequent default. 7. Costs and Fees of Collection. Borrower and every other person or entity at any time liable for the payment of the indebtedness evidenced hereby shall also be liable for all costs, expenses, and fees incurred by Lender in collecting any amounts owing hereunder, including reasonable attorneys' fees. Any judgment recovered by Lender shall bear interest at the Default Rate. S. Non-Recourse. Subject to the qualifications set forth below, Lender agrees that (i) Borrower shall be liable upon the indebtedness evidenced hereby to the full extent (but only to the extent) of the security therefore, (the "Security Property"), (0) if default occurs in the timely and proper payment of all or any part of such indebtedness evidenced hereby, any judicial or other proceedings brought by Lender against Borrower shall be limited to the preservation, enforcement and foreclosure of the liens, estates, assignments, rights and security interests now or at any time hereafter securing the payment of this Note, and no attachment, execution or other writ of process shall be sought, issued or levied upon any assets, properties or funds of Borrower other than the Security Property except with respect to the liability described below in this section, and (iii) in the event of a foreclosure of such liens, estates, assignments, rights or security interests securing the payment of this Note, no judgment for any deficiency upon the indebtedness evidenced hereby shall be sought or obtained by Lender against Borrower, except with respect to the liability described below in this section; provided, however, that, notwithstanding the foregoing provisions of this section, Borrower shall be fully and personally liable and subject to legal action: (a) for proceeds paid under any insurance policies (or paid as a result of any other claim or cause of action against any person or entity) by reason of damage, loss or destruction to all or any portion of the Security Property, to the full extent of such proceeds not previously delivered to Lender, but which, under the terms of the Deed of Trust, should have been delivered to Lender; (b) for proceeds or awards resulting from the condemnation or other taking in lieu of condemnation of all or any portion of the Security Property, or any of them, to the full extent of such proceeds or awards not previously REAL ESTATE PURCHASE AND SALE AGREEMENT 2010 —Page 14 of 49 (between Gry of Kent and Rose M Lehmann and Charlene M Nelson) delivered to Lender, but which, under the terms of the Deed of Trust, should have been delivered to Lender; (c) for rents, issues, profits and revenues of all or any portion of the Security Property received or applicable to a period after the occurrence of any event of default or any event which, with the giving of notice and/or the passage of time, would constitute an event of default hereunder which are not either applied to the ordinary and necessary expenses of owning and operating the Security Property or paid to Lender; In the event that Borrower fails to obtain Lender's prior written consent to any assignment, transfer or conveyance of the Security Property or any interest therein as required by the Deed of Trust: (i) the Loan shall be fully recourse to Borrower; and (ii) Lender shall not be deemed to have waived any right which Lender may have under Sections 506(a), 506(b), 1111(b) or any other provisions of the U.S. Bankruptcy Code to file a claim for the full amount of the Loan or to require that all collateral shall continue to secure all of the indebtedness owing to Lender in accordance with the Deed of Trust. Nothing contained in this Section shall (1) be deemed to be a release or impairment of the indebtedness evidenced by this Note or the Deed of Trust or (2) preclude Lender from foreclosing the Deed of Trust in case of any default or from enforcing any of the other rights of Lender except as stated in this Section. 9. Applicable Law. This Note is made with reference to and is to be construed in accordance with the laws of the State of Washington, without regard to that state's choice of law rules. NOTICE: ORAL AGREEMENTS OR ORAL COMMITMENTS TO LOAN MONEY, EXTEND CREDIT, OR FORBEAR FROM ENFORCING REPAYMENT OF A DEBT ARE NOT ENFORCEABLE UNDER WASHINGTON LAW. EXECUTED as the day and year first above written. REAL ESTATE PURCHASE AND SALE AGREEMENT 2010 —Page 15 of 49 (between City of Kent and Rose M Lehmann and Charlene M Nelson) CITY OF KENT. By Name: Title: STATE OF WASHINGTON ) ss. COUNTY OF KING ) I hereby certify that I know or have satisfactory evidence that Suzette Cooke is the person who appeared before me, and said person acknowledged that she signed this instrument, on oath stated that she is authorized to execute the instrument on behalf of the City of Kent as its Mayor, and such execution to be the free and voluntary act of such party for the uses and purposes mentioned in the foregoing instrument. Notary Seal Must Appear Within This Box IN WITNESS WHEREOF, I have hereunto set my hand and official seal the day and year first above written. NOTARY PUBLIC, in and for the State of Washington, residing at My appointment expires REAL ESTATE PURCHASE AND SALE AGREEMENT 2010 —Page 16 of 49 (between City of Kent and Rose Al' Lehmann and Charlene M Nelson) , Charlene M. Nelson. By Name: Title: STATE OF WASHINGTON ) ) ss. COUNTY OF KING ) On this day of , 2010, before me a Notary Public in and for the State of Washington, personally appeared , personally known to me (or proved to me on the basis of satisfactory evidence) to be the person who executed this instrument and acknowledged it to be free and voluntary act and deed for the uses and purposes mentioned in this instrument. Notary Seal MWAppear Within This Box- IN WITNESS WHEREOF, I have hereunto set my hand and official seal the day and year first above written. NOTARY PUBLIC, in and for the State of Washington, residing at My appointment expires REAL ESTATE PURCHASE AND SALE AGREEMENT 2010 —Page 17 of 49 (between Ctry of Kent and Rose M Lehmann and Charlene M Nelson) Rose Marie Lehmann. By Name: Title: STATE OF WASHINGTON ) ss. COUNTY OF KING ) On this day of , 2010, before me a Notary Public in and for the State of Washington, personally appeared , personally known to me (or proved to me on the basis of satisfactory evidence) to be the person who executed this instrument and acknowledged it to be free and voluntary act and deed for the uses and purposes mentioned in this instrument. Notarysea/Must Appear Within This Box- IN WITNESS WHEREOF, I have hereunto set my hand and official seal the day and year first above written. NOTARY PUBLIC, in and for the State of Washington, residing at My appointment expires P:\Civil\Files\Open Files\1469-HusePropertyAcquisition\Promissory NoteExhibitC.docx REAL ESTATE PURCHASE AND SALE AGREEMENT 2010 —Page 18 of 49 (between City of Kent and Rose M Lehmann and Charlene M Nelson) EXHIBIT "D" After Recording Return To: City of Kent 220 Fourth Avenue South Kent, WA 98032 Attn: Engineering/Property Services Grantor(s) (Borrower): Grantee(s) (Lender): Grantee(s) (Trustee): Reference Number(s) of Documents assigned or released: Legal Description (abbreviated): Additional legal(s) on Page Assessor's Property Tax Parcel/Account Numbers: DEED OFT RUST THIS DEED i f 2010 T S D OF TRUST, made this day o , between The City of Kent, GRANTOR, whose address is 220 Fourth Avenue South, Kent, Washington 98032, Pacific Northwest Title Company, a corporation, TRUSTEE, and Charlene M. Nelson and Rose Marie Lehmann, BENEFICIARIES, whose address is WITNESSETH: Grantor hereby bargains, sells and conveys to Trustee in Trust, with power of sale, the following described real property in King County, Washington: which real property is not used principally for agricultural or farming purposes, together with all tenements, hereditaments, and appurtenances now or hereafter thereunto belonging or in any wise appertaining, and the rents, issues and profits thereof. REAL ESTATE PURCHASE AND SALE AGREEMENT 2010 —Page 19 of 49 (between City of Kent and Rose M Lehmann and Charlene M Nelson) This deed is for the purpose of securing performance of each agreement of Grantor herein contained, and payment of the sum of and NO/100 DOLLARS ($ ) with interest, in accordance with the terms of a promissory note of even date herewith, payable to Beneficiary or order, and made by Grantor, and all renewals, modifications and extensions thereof, and also such further sums as may be advance or loaned by Beneficiary to Grantor or any of his/her/their successors or assigns, together with interest thereon at such rate as shall be agreed upon. To protect the security of this Deed of Trust, Grantor covenants and agrees: 1. To keep the property in good condition and repair; to permit no waste thereof; to complete any building, structure or improvement being built or about to be built thereon; to restore promptly any building, structure or improvement thereon which may be damaged or destroyed; and to comply with all laws, ordinances, regulations, covenants, conditions and restrictions affecting the property. 2. To pay before delinquent all lawful taxes and assessments upon the property; to keep the property free and clear of all other charges, liens or encumbrances impairing the security of this Deed of Trust. 3. To keep all buildings now or hereafter erected on the property described herein continuously insured against loss by fire or other hazards in an amount not less than the total debt secured by this Deed of Trust. All policies shall be held by the Beneficiary, and be in such companies as the Beneficiary may approve and have loss payable first to the Beneficiary as its interest may appear and then to the Grantor. The amount collected under any insurance policy may be applied upon any indebtedness hereby secured in such order as the Beneficiary shall determine. Such application by the Beneficiary shall not cause discontinuance of any proceedings to foreclose this Deed of Trust. In the event of foreclosure, all rights of the Grantor in insurance policies then in force shall pass to the purchaser at the foreclosure sale. 4. To defend any action or proceeding purporting to affect the security hereof or the rights or powers of Beneficiary or Trustee, and to pay all costs and expenses, including cost of title search and attorney's fees in a reasonable amount, in any such action or proceeding, and in any suit brought by Beneficiary to foreclose this Deed of Trust. 5. To pay all costs, fees and expenses in connection with this Deed of Trust, including the expenses of the Trustee incurred in enforcing the obligation secured hereby and Trustee's and attorney's fees actually incurred, as provided by statute. 6. Should Grantor fail to pay when due any taxes, assessments, insurance premiums, liens, encumbrances or other charges against the property hereinabove REAL ESTATE PURCHASE AND SALE AGREEMENT 2010 —Page 20 of 49 (behveen Gty of Kent and Rose M Lehmann and Charlene M Nelson) described, Beneficiary may pay the same, and the amount so paid, with interest at the rate set forth in the note secured hereby, shall be added to and become a part of the debt secured in this Deed of Trust. IT IS MUTUALLY AGREED THAT: 1. In the event any portion of the property is taken or damaged in an eminent domain proceeding, the entire amount of the award or such portion as may be necessary to fully satisfy the obligation secured hereby, shall be paid to Beneficiary to be applied to said obligation. 2. By accepting payment of any sum secured hereby after its due date, Beneficiary does not waive its right to require prompt payment when due of all other sums so secured or to declare default for failure to so pay. 3. The Trustee shall reconvey all or any part of the property covered by this Deed of Trust to the person entitled thereto, on written request of the Grantor and the Beneficiary, or upon satisfaction of the obligation secured and written request for reconveyance made by the Beneficiary or the person entitled thereto. 4. Upon default by Grantor in the payment of any indebtedness secured hereby or in the performance of any agreement contained herein, all sums secured hereby shall immediately become due and payable at the option of the Beneficiary. In such event and upon written request of Beneficiary, Trustee or its authorized agent shall sell the trust property, in accordance with applicable law, at public auction to the highest bidder. Any person except Trustee may bid at Trustee's sale. Trustee shall apply the proceeds of the sale as follows: (i) to the expense of sale, including a reasonable trustee's fee and attorney's fee; (ii) to the obligations secured by this Deed of Trust; (in) the surplus, if any, shall be deposited with the clerk of the superior court of the county in which the sale took place to be distributed in accordance with law. 5. Trustee shall deliver to the purchaser at the sale its deed, without warranty, which shall convey to the purchaser the interest in the property which Grantor had or had the power to convey at the time of his/her/their execution of this Deed of Trust, and such as he/she/they may have acquired thereafter. Trustee's deed shall recite the facts showing that the sale is conducted in compliance with all requirements of law and of this Deed of Trust, which recital shall be prima facie evidence of such compliance and conclusive evidence thereof in favor of bona fide purchasers and encumbrances for value. 6. The power of sale conferred by this Deed of Trust is not an exclusive remedy; Beneficiary may cause this Deed of Trust to be foreclosed as a mortgage. REAL ESTATE PURCHASE AND SALE AGREEMENT 2010 —Page 21 of 49 (between City of Kent and Rose M Lehmann and Charlene M Nelson) 7. In the event of the death, incapacity or disability or resignation of Trustee, Beneficiary may appoint in writing a successor trustee, and upon the recording of such appointment in the mortgage records of the county in which this Deed of Trust is recorded, the successor trustee shall be vested with all powers of the original trustee. The trustee is not obligated to notify any party hereto of pending sale under any other Deed of Trust or of any action or proceeding in which Grantor, Trustee or Beneficiary shall be a party unless such action or proceeding is brought by the Trustee. 8. This Deed of Trust applies to, inures to the benefit of, and is binding not only on the parties hereto, but on his/her/their heirs, devisees, legatees, administrators, executors, successors and assigns. The term Beneficiary shall mean the holder and owner of the note secured hereby, whether or not named as Beneficiary herein. 9. If the Property or any part thereof is sold, conveyed, leased, transferred, encumbered, or full possessory rights therein transferred without the prior written consent of Beneficiary, then Beneficiary may declare the entire remaining principal balance under this Deed of Trust immediately due and payable. This provision shall apply to each and every sale, transfer, conveyance or encumbrance regardless of whether or not Beneficiary has consented or waived its rights, whether by action or nonaction, in connection with any previous sale, transfer, conveyance or encumbrance, whether one or more. 10. Grantor shall pay when due all costs, fees and expenses incident to the property which are associated with a homeowner's or condominium owner's association, common area improvement and maintenance, and such similar expenses. Grantor further agrees to comply with all rules, regulations, covenants and restrictions of any homeowner's or condominium owner's association. BY: BY: BY: REAL ESTATE PURCHASE AND SALE AGREEMENT 2010 —Page 22 of 49 (between City of Kent and Rose M Lehmann and Charlene M Nelson) STATE OF WASHINGTON S ) ss. COUNTY OF KING ) On this day of 2010, before me a Notary Public in and for the State of Washington, personally appeared , personally known to me (or proved to me on the basis of satisfactory evidence) to be the person who executed this instrument and acknowledged it to be free and voluntary act and deed for the uses and purposes mentioned in this instrument. Notary Seal Must Appear wltMn This Box- IN WITNESS WHEREOF, I have hereunto set my hand and official seal the day and year first above written. NOTARY PUBLIC, in and for the State of Washington, residing at My appointment expires REAL ESTATE PURCHASE AND SALE AGREEMENT 2010 —Page 23 of 49 (between City of Kent and Rose M Lehmann and Charlene M Nelson) STATE OF WASHINGTON ) ss. COUNTY OF KING ) On this day of , 2010, before me a Notary Public in and for the State of Washington, personally appeared , personally known to me (or proved to me on the basis of satisfactory evidence) to be the person who executed this instrument and acknowledged it to be free and voluntary act and deed for the uses and purposes mentioned in this instrument. Notary Seal Must Appear Within This Box- IN WITNESS WHEREOF, I have hereunto set my hand and official seal the day and year first above written. NOTARY PUBLIC, in and for the State of Washington, residing at My appointment expires REAL ESTATE PURCHASE AND SALE AGREEMENT 2010 —Page 24 of 49 (between City of Kent and Rose M Lehmann and Charlene M Nelson) STATE OF WASHINGTON ) ss. COUNTY OF KING ) On this day of 2010, I hereby certify that I know or have satisfactory evidence that is the person who appeared before me, and said person acknowledged that he/she signed this instrument, on oath stated that he/she is authorized to execute the instrument on behalf of the City of Kent as its . and such execution to be the free and voluntary act of such party for the uses and purposes mentioned in the foregoing instrument. -Notary Seal Must Appear Within This Box- IN WITNESS WHEREOF, I have hereunto set my hand and official seal the day and year first above written. NOTARY PUBLIC, in and for the State of Washington, residing at My appointment expires REAL ESTATE PURCHASE AND SALE AGREEMENT 2010 —Page 25 of 49 (between City of Kent and Rose M Lehmann and Charlene M Nelson) i • REQUEST FOR FULL RECONVEYANCE Do not record. To be used only when note has been paid. TO TRUSTEE The undersigned is the legal owner and holder of the note and all other indebtedness secured by the within Deed of Trust. Said note, together with all other indebtedness secured by said Deed of Trust, has been fully paid and satisfied; and you are hereby requested and directed, on payment to you of any sums owing to you under the terms of said Deed of Trust, to cancel said note above mentioned, and all other evidences of indebtedness secured by said Deed of Trust delivered to you herewith, together with the said Deed of Trust, and to reconvey, without warranty, to the parties designated by the terms of said Deed of Trust, all the estate now held by you thereunder. Dated: By: By: REAL ESTATE PURCHASE AND SALE AGREEMENT 2010 —Page 26 of 49 (between Czty of Kent and Rose M Lehmann and Charlene M Nelson) EXHIBIT "E" SELLER'S DISCLOSURE STATEMENT INSTRUCTIONS TO THE SELLER Please complete the following form. Do not leave any spaces blank. If the question clearly does not apply to the property write "NA." If the answer is "yes" to any items, please explain on attached sheets. Please refer to the line number(s) of the question(s) when you provide your explanation(s). For your protection you must date and sign each page of this disclosure statement and each attachment. Delivery of the disclosure statement must occur not later than five business days, unless otherwise agreed, after mutual acceptance of a written contract to purchase between a buyer and a seller. NOTICE TO THE BUYER THE FOLLOWING DISCLOSURES ARE MADE BY SELLER ABOUT THE CONDITIONS OF THE PROPERTIES LOCATED AT 13417 SE 2161h STREET, AND 13425 SE 216T" STREET, KENT, WASHINGTON, ("THE PROPERTY"), OR AS LEGALLY DESCRIBED ON ATTACHED EXHIBIT A. SELLER MAKES THE FOLLOWING DISCLOSURES OF EXISTING MATERIAL FACTS OR MATERIAL DEFECTS TO BUYER BASED ON SELLER'S ACTUAL KNOWLEDGE OF THE PROPERTY AT THE TIME SELLER COMPLETES THIS DISCLOSURE STATEMENT. UNLESS YOU AND SELLER OTHERWISE AGREE IN WRITING, YOU HAVE THREE BUSINESS DAYS FROM THE DAY SELLER OR SELLER'S AGENT DELIVERS THIS DISCLOSURE STATEMENT TO YOU TO RESCIND THE AGREEMENT BY DELIVERING A SEPARATELY SIGNED WRITTEN STATEMENT OF RESCISSION TO SELLER OR SELLER'S AGENT. IF THE SELLER DOES NOT GIVE YOU A COMPLETED DISCLOSURE STATEMENT, THEN YOU MAY WAIVE THE RIGHT TO RESCIND PRIOR TO OR AFTER THE TIME YOU ENTER INTO A SALE AGREEMENT. THE FOLLOWING ARE DISCLOSURES MADE BY SELLER AND ARE NOT THE REPRESENTATIONS OF ANY REAL ESTATE LICENSEE OR OTHER PARTY. THIS INFORMATION IS FOR DISCLOSURE ONLY AND IS NOT INTENDED TO BE A PART OF ANY WRITTEN AGREEMENT BETWEEN BUYER AND SELLER. FOR A MORE COMPREHENSIVE EXAMINATION OF THE SPECIFIC CONDITION OF THIS PROPERTY YOU ARE ADVISED TO OBTAIN AND PAY FOR THE SERVICES OF QUALIFIED EXPERTS TO INSPECT THE PROPERTY, WHICH MAY INCLUDE, WITHOUT LIMITATION, ARCHITECTS, ENGINEERS, LAND SURVEYORS, PLUMBERS, REAL ESTATE PURCHASE AND SALE AGREEMENT 2010 —Page 27 of 49 (beriveen City of Kent and Rose M Lehmann and Charlene M Nelson) ELECTRICIANS, ROOFERS, BUILDING INSPECTORS, ON-SITE WASTEWATER TREATMENT INSPECTORS, OR STRUCTURAL PEST INSPECTORS. THE PROSPECTIVE BUYER AND SELLER MAY WISH TO OBTAIN PROFESSIONAL ADVICE OR INSPECTIONS OF THE PROPERTY OR TO PROVIDE APPROPRIATE PROVISIONS IN A CONTRACT BETWEEN THEM WITH RESPECT TO ANY ADVICE, INSPECTION, DEFECTS OR WARRANTIES. Seller ... is/ ... is not occupying the property. I. SELLER'S DISCLOSURES: *If you answer "Yes" to a question with an asterisk (*), please explain your answer and attach documents, if available and not otherwise publicly recorded. If necessary, use an attached sheet. 1. TITLE [ ] Yes [ ] No [ ] Don't know A. Do you have legal authority to sell the property? If no, please explain. [ ] Yes [ ] No [ ] Don't know *B. Is title to the property subject to any of the following? (1) First right of refusal (2) Option (3) Lease or rental agreement (4) Life estate? [ ] Yes [ ] No [ ] Don't know *C. Are there any encroachments, boundary agreements, or boundary disputes? [ ] Yes [ ] No [ ] Don't know *D. Is there a private road or easement agreement for access to the property? [ ] Yes [ ] No [ ] Don't know *E. Are there any rights-of-way, easements, or access limitations that may affect the Buyer's use of the property? [ ] Yes [ ] No [ ] Don't know *F. Are there any written agreements for REAL ESTATE PURCHASE AND SALE AGREEMENT 2010 —Page 28 of 49 (between Czry of Kent and Rose M Lehmann and Charlene M Nelson) a Joint maintenance of an easement or right- of-way? [ ] Yes [ ] No [ ] Don't know *G. Is there any study, survey project, or notice that would adversely affect the property? [ ] Yes [ ] No [ ] Don't know *H. Are there any pending or existing assessments against the property? [ ] Yes [ ] No [ ] Don't know *I. Are there any zoning violations, nonconforming uses, or any unusual restrictions on the property that would affect future construction or remodeling? [ ] Yes [ ] No [ ] Don't know *J. Is there a boundary survey for the property? [ ] Yes [ ] No [ ] Don't know *K. Are there any covenants, conditions, Or restrictions which affect the property? 2. WATER A. Household Water (1) The source of water for the property is: [ ] Private or publicly owned water system [ ] Private well serving on the subject Property [ ] Other water system [ ] Yes [ ] No [ ] Don't know * If shared, are there any written agreements? [ ] Yes [ ] No [ ] Don't know *(2) Is there an easement (recorded or unrecorded) for access to and/or maintenance of the water source? [ ] Yes [ ] No [ ] Don't know *(3) Are there any known problems or Repairs needed? [ ] Yes [ ] No [ ] Don't know (4) During your ownership, has the source provided an adequate year-round supply of potable water? If no, please explain. REAL ESTATE PURCHASE AND SALE AGREEMENT 2010 —Page 29 of 49 (between City of Kent and Rose M Lehmann and Charlene M Nelson) [ ] Yes [ ] No [ ] Don't know (5) Are there any water treatment systems for the property? If yes, are they [ ] Leased [ ] Owned. [ ] Yes [ ] No [ ] Don't know (6) Are there any water rights for the property associated with its domestic water supply, such as a water right permit, certificate, or claim? [ ] Yes [ ] No [ ] Don't know (a) If yes, has the water right, permit, certificate, or claim been assigned, transferred, or changed? [ ] Yes [ ] No [ ] Don't know (b) If yes, has all or any portion of The water right not been used for five or more successive years? (If yes, please explain.) B. Irrigation Water [ ] Yes [ ] No [ ] Don't know (1) Are there any irrigation water rights for the property, such as a water permit, certificate, or claim? [ ] Yes [ ] No [ ] Don't know (a) If yes, has all or any portion of the water right not been used for five or more successive years? [ ] Yes [ ] No [ ] Don't know (b) If so, is the certificate available? (If yes, please attach a copy.) [ ] Yes [ ] No [ ] Don't know (c) If so, has the water right permit, certificate, or claim been assigned, transferred, or changed? If so, explain: [ ] Yes [ ] No [ ] Don't know (2) Does the property receive irrigation water from a ditch company, irrigation district, or other entity? If so, please identify the entity that supplies irrigation water to the property: REAL ESTATE PURCHASE AND SALE AGREEMENT 2010 —Page 30 of 49 (between City of Kent and Rose M Lehmann and Charlene M Nelson) C. Outdoor Sprinkler System [ ] Yes [ ] No [ ] Don't know (1) Is there an outdoor sprinkler system for the property? [ ] Yes [ ] No [ ] Don't know (2) If yes, are there any defects in the system? [ ] Yes [ ] No [ ] Don't know *(3) If yes, is the sprinkler system connected to irrigation water? 3. SEWER/SEPTIC SYSTEM A. The property is served by: ( ] Public sewer system [ ] On-site sewage system (including pipes, tanks, drainfields, and all other component parts) [ ] Other disposal system, please describe: [ ] Yes [ ] No [ ] Don't know B. If public sewer system service is Available to the property, is the house connected to the sewer main? If no, please explain. [ ] Yes [ ] No [ ] Don't know C. Is the property subject to any sewage system fees or charges in addition to those covered in your regularly billed sewer or on- site sewage system maintenance service? D. If the property is connected to an on- site sewage system: [] Yes [] No [] Don't know (1) Was a permit issued for its construction, and was it approved by the local health department or district following its construction? (2) When was it last pumped: [ ] Yes [ ] No [ ] Don't know *(3) Are there any defects in the operation of the on-site sewage REAL ESTATE PURCHASE AND SALE AGREEMENT 2010 —Page 31 of 49 (between City of Kent and Rose M Lehmann and Charlene M Nelson) system? [ ] Don't know (4) When was it last inspected? By whom: [ ] Don't know (5) For how many bedrooms was the on-site sewage system approved? Bedrooms [ ] Yes [ ] No [ ] Don't know E. Are all plumbing fixtures, including laundry drain, connected to the sewer/on- site sewage system? If no, please explain: [ ] Yes [ ] No [ ] Don't know F. Have there been any changes or repairs to the on-site sewage system? [ ] Yes [ ] No [ ] Don't know G. Is the on-site sewage system, including the drainfield, located entirely within the boundaries of the property? If no, please explain [ ] Yes ( ] No [ ] Don't know H. Does the on-site sewage system require monitoring and maintenance services more frequently than once a year? If yes, please explain: NOTICE: IF THIS RESIDENTIAL REAL PROPERTY DISCLOSURE STATEMENT IS BEING COMPLETED FOR NEW CONSTRUCTION WHICH HAS NEVER BEEN OCCUPIED, THE SELLER IS NOT REQUIRED TO COMPLETE THE QUESTIONS LISTED IN ITEM 4. STRUCTURAL OR ITEM 5. SYSTEMS AND FIXTURES. 4. STRUCTURAL [ ] Yes [ ] No [ ] Don't know *A. Has the roof leaked? [ ] Yes [ ] No [ ] Don't know *B. Has the basement flooded or leaked? [ ] Yes [ ] No [ ] Don't know *C. Have there been any conversions, additions, or remodeling? [ ] Yes [ ] No [ ] Don't know *(1) If yes, were all building permits obtained? REAL ESTATE PURCHASE AND SALE AGREEMENT 2010 —Page 32 of 49 (between City of Kent and Rose M Lehmann and Charlene M Nelson) [ ] Yes [ ] No [ ] Don't know *(2) If yes, were all final inspections obtained? [ ] Yes [ ] No [ ] Don't know D. Do you know the age of the house? If yes, year of original construction: [ ] Yes [ ] No [ ] Don't know *E. Has there been an settling, slippage, or sliding of the property or its improvements? [ ] Yes [ ] No [ ] Don't know *F. Are there any defects with the following: (If yes, please check applicable items and ex lain. ❑ Foundations ❑ Decks ❑ Exterior Walls ❑ Chimneys ❑ Interior Walls ❑ Fire Alarm Doors ❑ Windows ❑ Patio ❑ Ceilings ❑ Slab Floors ❑ Driveways ❑ Pools ❑ Hot Tub ❑ Saunas ❑ Sidewalks ❑ Outbuildings ❑ Fireplaces ❑ Garage Floors I ❑ Walkways ❑ Siding ❑ Other I ❑ Wood Stoves [ ] Yes [ ] No [ ] Don't know *G. Was a structural pest or "whole house" inspection done? If yes, when and by whom was the inspection completed? [ ] Yes [ ] No [ ] Don't know H. During your ownership, has the property had any wood destroying organism or pest infestation? [ ] Yes [ ] No [ ] Don't know I. Is the attic insulated? [ ] Yes [ ] No [ ] Don't know ]. Is the basement insulated? 5. SYSTEMS AND FIXTURES *A. If any of the following systems or fixtures are included with the transfer, are there any defects? If yes, please explain. [ ] Yes [ ] No [ ] Don't know • Electrical system, including wiring, switches, outlets, and service. [ ] Yes [ ] No [ ] Don't know • Plumbing system, including pipes, REAL ESTATE PURCHASE AND SALE AGREEMENT 2010 —Page 33 of 49 (between City of Kent and Rose M Lehmann and Charlene M Nelson) faucets, fixtures, and toilets. [ ] Yes [ ] No [ ] Don't know • Hot water tank [ ] Yes [ ] No [ ] Don't know • Garbage disposal [ ] Yes [ ] No [ ] Don't know • Appliances [ ] Yes [ ] No [ ] Don't know • Sump pump [ ] Yes [ ] No [ ] Don't know • Heating and cooling systems [ ] Yes [ ] No [ ] Don't know • Security system [ ] Owned [ ] Leased [ ] Other *B. If any of the following fixtures or property is included with the transfer, are they leased? (If yes, please attach copy of lease.) [ ) Yes [ ] No [ ] Don't know Security system [ ] Yes [ ] No [ ] Don't know Tanks (type): [ ] Yes [ ] No [ ] Don't know Satellite dish [ ] Yes [ ] No [ ] Don't know Other: 6. HOMEOWNDERS' ASSOCIATION/COMMON INTERESTS [ ] Yes [ ] No [ ] Don't know A. Is there a Homeowners' Association? Name of the Association and contact information for an officer, director, employee, or other authorized agent, if any, who may provide the association's financial statements, minutes, bylaws, fining policy, and other information that is not publicly available. [ ] Yes [ ] No [ ] Don't know B. Are there regular periodic REAL ESTATE PURCHASE AND SALE AGREEMENT 2010 —Page 34 of 49 (between City of Kent and Rose M Lehmann and Charlene M Nelson) assessments: $ per [ ] Month [ ] Year [ ] Other [ ] Yes [ ] No [ ] Don't know *C. Are there any pending special assessments? [ ] Yes [ ] No [ ] Don't know *D. Are there any shared "common areas" or any joint maintenance agreements (facilities such as walls, fences, landscaping, pools, tennis courts, walkways, or other areas co-owned in undivided interest with others)? 7. ENVIRONMENTAL [ ] Yes [ ] No [ ] Don't know *A. Have there been any drainage Problems on the property? [ ] Yes [ ] No [ ] Don't know *B. Does the property contain fill material? [ ] Yes [ ] No [ ] Don't know *C. Is there any material damage to the property from fire, wind, floods, beach movements, earthquake, expansive soils, or landslides? [ ] Yes [ ] No [ ] Don't know D. Are there any shorelines, wetlands, floodplains, or critical areas on the property? [ ] Yes [ ] No [ ] Don't know *E. Are there any substances, materials, or products on the property that may be environmental concerns, such as asbestos, formaldehyde, radon gas, lead-based paint, fuel or chemical storage tanks, or contaminated soil or water? [ ] Yes [ ] No [ ] Don't know *F. Has the property been used for commercial or industrial purposes? [ ] Yes [ ] No [ ] Don't know *G. Is there any soil or groundwater contamination? [ ] Yes [ ] No [ ] Don't know *H. Are there transmission poles, transformers, or other utility equipment REAL ESTATE PURCHASE AND SALE AGREEMENT 2010 —Page 35 of 49 (between City of Kent and Rose M Lehmann and Charlene M Nelson) installed, maintained, or buried on the property? [ ] Yes [ ] No [ ] Don't know *I. Has the property been used as a legal or illegal dumping site? [ ] Yes [ ] No [ ] Don't know *J. Has the property been used as an illegal drug manufacturing site? [ ] Yes [ ] No [ ] Don't know *K. Are there any radio towers in the area that may cause interference with telephone reception? S. MANUFACTURED AND MOBILE HOMES If the property includes a manufactured or mobile home, [ ] Yes [ ] No [ ] Don't know *A. Did you make any alterations to the home? If yes, please describe the alterations: [ ] Yes [ ] No [ ] Don't know *C. If alterations were made, were permits or variances for theses alterations obtained? 9. FULL DISCLOSURE BY SELLERS A. Other conditions or defects: [ ] Yes [ ] No [ ] Don't know *Are there any other existing material defects affecting the property that a prospective buyer should know about? B. Verification: The foregoing answers and attached explanations (if any) are complete and correct to the best of my/our knowledge and I/we have received a copy hereof. I/we authorize all of my/our real estate licensees, if any, to deliver a copy of this disclosure statement to other real estate licensees and all prospective buyers of the property. DATE: SELLER: SELLER: REAL ESTATE PURCHASE AND SALE AGREEMENT 2010 —Page 36 of 49 (behveen Cay of Kent and Rose M Lehmann and Charlene M Nelson) NOTICE TO THE BUYER INFORMATION REGARDING REGISTERED SEX OFFENDERS MAY BE OBTAINED FROM LOCAL LAW ENFORCEMENT AGENCIES. THIS NOTICE IS INTENDED ONLY TO INFORM YOU OF WHERE TO OBTAIN THIS INFORMATION AND IS NOT AN INDICATION OF THE PRESENCE OF REGISTERED SEX OFFENDERS. II. BUYER'S ACKNOWLEDGMENT A. Buyer hereby acknowledges that: Buyer has a duty to pay diligent attention to any material defects that are known to Buyer or can be known to Buyer by utilizing diligent attention and observation. B. The disclosures set forth in this statement and in any amendments to this statement are made only by the Seller and not by any real estate licensee or other party. C. Buyer acknowledges that, pursuant to RCW 64.06.050(2), real estate licensees are not liable for inaccurate information provided by Seller, except to the extent that real estate licensees know of such inaccurate information. D. This information is for disclosure only and is not intended to be a part of the written agreement between the Buyer and Seller. E. Buyer (which term includes all persons signing the "Buyer's acceptance" portion of this disclosure statement below) has received a copy of this Disclosure Statement (including attachments, if any) bearing Seller's signature. DISCLOSURES CONTAINED IN THIS DISCLOSURE STATEMENT ARE PROVIDED BY SELLER BASED ON SELLER'S ACTUAL KNOWLEDGE OF THE PROPERTY AT THE TIME SELLER COMPLETES THIS DISCLOSURE STATEMENT. UNLESS BUYER AND SELLER OTHERWISE AGREE IN WRITING, BUYER SHALL HAVE THREE BUSINESS DAYS FROM THE DAY SELLER OR SELLER'S AGENT DELIVERS THIS DISCLOSURE STATEMENT TO RESCIND THE AGREEMENT BY DELIVERING A SEPARATELY SIGNED WRITTEN STATEMENT OF RESCISSION TO SELLER OR SELLER'S AGENT. YOU MAY WAIVE THE RIGHT TO RESCIND PRIOR TO OR AFTER THE TIME YOU ENTER INTO A SALE AGREEMENT. BUYER HEREBY ACKNOWLEDGES RECEIPT OF A COPY OF THIS DISCLOSURE STATEMENT AND ACKNOWLEDGES THAT THE DISCLOSURES MADE HEREIN ARE THOSE OF THE SELLER ONLY, AND NOT OF ANY REAL ESTATE LICENSEE OR OTHER PARTY. DATE: SELLER: SELLER: REAL ESTATE PURCHASE AND SALE AGREEMENT 2010 —Page 37 of 49 (between City of Kent and Rose M Lehmann and Charlene M Nelson) EXHIBIT A - PAGE 1 OF 2 THE NORTHWEST QUARTER OF THE SOUTHWEST QUARTER OF SECTION 10, TOWNSHIP 22 NORTH, RANGE 5 EAST, WILLAMETTE MERIDIAN, IN KING COUNTY, WASHINGTON, TOGETHER WITH THAT PORTION DESCRIBED AS FOLLOWS; BEGINNING AT THE NORTHEAST CORNER OF THE NORTHWEST QUARTER OF THE SOUTHWEST QUARTER OF SECTION 10, TOWNSHIP 22 NORTH, RANGE 5 EAST, WILLAMETTE MERIDIAN, IN KING COUNTY, WASHINGTON; THENCE SOUTH 1010'49: WEST A DISTANCE OF 848 85 FEET TO THE TRUE POINT OF BEGINNING, THENCE SOUTH 1010149" WEST, 478.37 FEET; THENCE SOUTH 89D04'32- EAST, 45.00 FEET; THENCE NORTH 45651'35" EAST, 62 76 FEET; THENCE NORTH 10045126" WEST, 264.27 FEET; THENCE NORTH 9'57'42" WEST, 178 35 FEET TO THE TRUE POINT OF BEGINNING; EXCEPT THAT PORTION THEREOF DESCRIBED AS FOLLOWS; BEGINNING AT THE SOU`1'HWEST CORNER OF THE NORTHWEST QUARTER OF OF THE SOUTHWEST QUARTER AND RUNNING THENCE EAST ALONG THE SOUTH LINN 4C RODS; THENCE NORTH 2O. RODS; THENCE WEST 40 RODS; THENCE SOUTH 20 RODS TO THE POINT OF BEGINNING; EXCEPT THAT PORTION THEREOF DESCRIBED AS FOLLOWS: BEGINNING AT THE NORTHEAST CORNER OF THE NORTHWEST QUARTER OF THE SOUTHWEST QUARTER OF SECTION 10, TOWNSHIP 22 NORTH, RANGE 5 EAST, WILLAMETTE MERIDIAN, IN KING COUNTY, WASHINGTON; THENCE SOUTH 1010'49" WEST A DISTANCE OF 30 FEET TO THE TRUE POINT OF BEGINNING; THENCE SOUTH 10101490 WEST, 818.85 FEET; THENCE NORTH 13050'140 WEST, 114.38 FEET; THENCE NORTH 2916'36" EAST, 119.91 FEET; THENCE NORTH 5°03127" WEST, 179.40 FEET; THENCE NORTH 5032116" WEST, 256 57 FEET; THENCE NORTH 8"38'08" EAST, 1S5.90 FEET TO A POINT ON THE SOUTH RIGHT OF WAY MARGIN OF SOUTHEAST 216TH STREET; THENCE ALONG SAID MARGIN SOUTH 89"04114" EAST, 25 00 FEET TO THE TRUE POINT OF BEGINNING; EXCEPT THE HEST 30 FEET THEREOF CONVEYED TO KING COUNTY FOR 132ND AVENUE SOUTHEAST BY DEED RECORDED UNDER RECORDING NUMBER 141716; EXCEPT THE NORTH 30 FEET THEREOF CONVEYED TO KING COUNTY FOR SOUTHEAST 216TH STREET BY DEED RECORDED UNDER RECORDING NUMBER 2948529; ALSO EXCEPT THE WEST 460 FEET OF THE NORTH 610 FEET OF THE NORTHEAST QUARTER OF THE NORTHWEST QUARTER OF THE SOUTHWEST QUARTER OF SAID SECTION, TOWNSHIP AND RANGE. nn at l n r Zulu, —Page 38 of49 (between City of Kent and Rose Al Lehmann and Charlene M Nelson) 1 Y F • • EXHIBIT A - PAGE 2 OF 2 THE NEST 460 FEET OF THE t0ORTR 610 FEET OF THE HORTM?AST QUARTER OP TIM NORTHWEST QUARTER OF THE SOUTEWEST QUARTEP OF SECTION 10, TOWNSHIP 22 NORTH, RANGE 5 EAST, WIL,IAMETTE MERILIAN, IN KING COUN^.Y, WASEINGTON, EXCEPT COUNTY ROAD. REAL ESTATE PURCHASE AND SALE AGREEMENT 2010 —Page 39 of 49 (between Cary of Kent and Rose M Lehmann and Charlene M Nelson) EXHIBIT F LEASE AGREEMENT THIS LEASE is entered into the date fully executed by and between the CITY OF KENT hereinafter called the "Owner", and , hereinafter called the "Tenant". 1. PREMISES The Owner leases to Tenant one house and the covered arena located on King County Tax Parcel No. 1022059143, located at 13417 SE 216th Street, Kent, Washington, 98042, and 1022059011, located at , 13425 SE 216th Street, Kent, Washington 98042, and legally described in Attachment "A" attached and incorporated into this Lease (the "Premises"). 2. USE Tenant shall use the Premises for personal residence and arena purposes only. No use shall be made of Premises, nor act done in or about Premises, which is illegal, unlawful, violates zoning codes, or which will increase the existing rate of insurance for the Premises. Tenant shall not commit, or allow to be committed upon the Premises, any waste or any public or private nuisance. Tenant will comply, at Tenant's own cost and expense, with all reasonable orders, notices, regulations or requirements of any municipality, state or other governmental authority respecting the use of the Premises. 3. TERM The term of this Lease shall begin upon the first day of the month following Closing of the sale of the Premises between Owner, as buyer, and Tenant, as seller. The sale was closed on July 30, 2010. This Lease shall continue for one (1) year. Tenant may terminate this Lease sooner upon giving Owner twenty (20) days written notice prior to the end of the month. 4. RENT A. Monthly rent of $1,200 per month, through the term of the Lease, has been included in the purchase price of the Sale Agreement. Tenant shall pay leasehold tax, which at this time is 12.84% (or $154.08 per month) to Owner on the first of each month. If this lease is terminated prior to the one year expiration in Section 3, neither Owner nor Tenant shall owe each other rent or leasehold tax for the unexpired portion of the term. REAL ESTATE PURCHASE AND SALE AGREEMENT 2010 —Page 40 of 49 (between City of Kent and Rose M Lehmann and Charlene M Nelson) B. Leasehold tax shall be paid in advance, on or before the first day of the month during the Lease Term. Leasehold tax shall be mailed to. City of Kent Customer Services 220 Fourth Avenue South Kent, WA 98032 C. Tenat shall pay Owner a late payment charge equal to five percent (5%) of the leasehold tax for any payment not paid within five (5) calendar days of when due. Any amounts not paid when due shall bear interest until paid at the rate of one percent (1%) per month. 5. TAXES Tenant shall pay any tax that this Lease, or the interest created thereby, may be subject to at any time during the term of the Lease or renewal thereof. 6. RE-DELIVERY Tenant, at the expiration of the term in Section 3, any extension of the term, or upon any sooner termination of this Lease, will, without notice from Owner, quit and deliver up the Premises to the Owner peaceably, quietly, and in as good order and condition as the same now are or may hereafter be placed by Owner, reasonable use and wear thereof excepted. 7. TENANT'S OBLIGATIONS A. Utilities: Tenant will pay, when due, all utilities (water, sewer, gas, garbage, electricity, etc.). It is the obligation of the Tenant to set up or continue utilities services at the beginning of tenancy. Tenant is to pay the utility company directly. The Tenant is obligated for all utilities until the last day of tenancy. Tenant shall cause no liens of record to be placed upon the Premises because of delinquent utility charges. B. Operation of Appliances: Tenant shall properly use and operate all electrical, gas, heating, and plumbing fixtures as well as appliances supplied by7 the Owner on the Premises. C. Appliances: Tenant shall promptly repair any appliances if the malfunction was caused by Tenant. REAL ESTATE PURCHASE AND SALE AGREEMENT 2010 —Page 41 of 49 (between City of Kent and Rose M Lehmann and Charlene M Nelson) • • I D. Broken Glass: Tenant shall promptly replace any glass that is broken as a result of the Tenant and his/her guest(s). E. Yard: Tenant shall, at his/her expense, maintain the Premises by watering, weeding, and overall conditioning the lawn, shrubs, trees, and landscaping. F. Utility System: Tenant shall protect the plumbing system from freezing and maintain the heating system, which includes regular changing of the furnace filters if applicable. G. Regular Maintenance: Regular maintenance of faucets, pipes, gutters, furnace, roof, and chimney is the Tenant's obligation year round. Annual maintenance of the roof will include such work as pressure washing and replacement of loose or missing shingles. H. Paint: Exterior surfaces shall be treated by the City on a life cycle schedule every 5-7 years. Maintenance of interior surfaces shall be the responsibility of the Tenant.' I. Dangerous Conditions: Tenant shall immediately notify the Owner of any dangerous condition that might lead to the impairment of the value of the Premises. ). Insurance: Tenant shall procure and maintain renter's insurance in connection with Tenant's use of the Premises. For the arena, Tenant shall obtain _ insurance. S. EXCEPTIONS FROM LEASE: The following items will not be repaired or replaced by the Owner and remain on the Premises only for the convenience of the Tenant: 9. OWNER OBLIGATIONS: Owner agrees to maintain the Premises according to the laws of the State of Washington and Federal agencies. However, if a defective condition was caused directly or indirectly by the Tenant, his/her family, guest, licensee, or any other person(s) acting under the control or direction of Tenant, the Owner shall have no obligation to repair said defect, and the Tenant shall immediately repair the defect at Tenant's cost. The Tenant shall have no defense against the Owner to remedy the defective condition. This applies also where Tenant unreasonably fails to notify the Owner of the condition or allow Owner access to the Premises for the purpose of repair. REAL ESTATE PURCHASE AND SALE AGREEMENT 2010 —Page 42 of 49 (between City of Kent and Rose M Lehmann and Charlene M Nelson) 10. ALTERATIONS Tenant shall not make any alterations, additions or improvements to the Premises, without obtaining the consent of Owner in writing first, which shall not be unreasonably withheld. Owner does hereby consent to cosmetic alterations such as painting. All alterations, additions and improvements that are made, shall be at the sole cost and expense of Tenant. All improvements shall become the property of the Owner except for improvements that Owner, at Owner's option, agrees are the property of Tenant, or improvements that Owner requests Tenant remove at termination. If the Tenant performs work with the consent of the Owner, Tenant agrees to comply with all laws, ordinances, rules, regulations of the appropriate governing authority. The Tenant further agrees to save the Owner free and harmless from damage, loss or expense arising out of said work. 11. INDEMNIFICATION/HOLD HARMLESS Tenant shall defend, indemnify and hold the Owner, its officers, officials, employees and volunteers harmless from any and all claims, injuries, damages, losses or suits including attorney fees, arising out of or in connection with the performance of this Lease, except for injuries and damages caused by the sole negligence of the Owner. Should a court of competent jurisdiction determine that this Lease is subject to RCW 4.24.115, then, in the event of liability for damages arising out of bodily injury to persons or damages to property caused by or resulting from the concurrent negligence of the Tenant and the Owner, its officers, officials, employees, and volunteers, the Tenant shall be liable hereunder, except to the extent the liability is attributed to Owner's negligence. The provisions of this Section shall survive the expiration or termination of this Lease. 12. LIENS Tenant shall keep the leased Premises free from any liens arising out of any work performed, materials furnished, or obligations incurred by Tenant. 13. ASSIGNMENT Tenant shall not assign this Lease or any part thereof. Tenant shall not let or sublet the homes on the Premises. Tenant may not sublet the arena. This Lease shall not be assignable by operation of law. 14. ACCESS Tenant will allow Owner or Owner's agents free access at all reasonable times to the Premises for the purposes of inspection. This right shall not be construed as an agreement on the part of the Owner to make repairs, additions, or alterations. REAL ESTATE PURCHASE AND SALE AGREEMENT 2010 —Page 43 of 49 (between City of Kent and Rose M Lehmann and Charlene M Nelson) • • . 1 15. DAMAGE OR DESTRUCTION. REPAIR OR REPLACEMENT In the event the Premises is damaged to such extent as to render the Premises untenantable in whole or in a substantial part thereof, or is destroyed, the Tenant shall give Owner or Owner's agent immediate written notice thereof, and, it shall be optional with the Owner to repair or rebuild the same. Owner shall have not more than thirty (30) days after date of such notification to notify the Tenant in writing of Owner's intentions to repair or rebuild the Premises, or the part damaged. If Owner elects to repair or rebuild the Premises, Owner shall prosecute the work of repairing or rebuilding without unnecessary delay. If Owner elects not to repair or rebuild the Premises this Lease shall be terminated and Owner shall not be obligated to provide Tenant another facility to lease. 16. NOTICES All notices to be given by the parties hereto shall be in writing and may either be served personally or may be deposited in the United States Mail, postage prepaid, by either registered mail or by regular mail with certificate of mailing obtained. Notices shall be mailed to the addresses below, or a later changed addressed provided in writing to the party: OWNER: City of Kent Attn: Parks & Community Services Director 220 Fourth Avenue South Kent, Washington 98032 (253) 856-5700 TENANT: 17. DEFAULT AND RE-ENTRY If Tenant shall violate, default or not comply with any of the material covenants, agreements or provisions of this Lease, then the Owner may cancel this Lease upon giving the notice required by law, and re-enter the Premises, using such force as may be required. The failure of the Owner to insist upon strict performance of any of the covenants and agreements of this Lease, or to exercise any option herein conferred in REAL ESTATE PURCHASE AND SALE AGREEMENT 2010 —Page 44 of 49 (between City of Kent and Rose M Lehmann and Charlene M Nelson) any one or more instances, shall not be construed to be a waiver or relinquishment of any such, or any other covenant or agreements, but the same shall be and remain in full force and effect. IS. COSTS AND ATTORNEYS FEES If by reason of any default on the part of Tenant it becomes necessary for the Owner to use an attorney, or if Tenant shall bring any action for any relief against Owner, declaratory or otherwise, arising out of this Lease, each party shall be responsible to pay its own attorney fees and costs. 19. REMOVAL OF PROPERTY In the event of any entry in, or taking possession of, the Premises, the Owner shall have the right, but not the obligation, to remove from the Premises all personal property located therein. Owner may store the same in any place selected by Owner, including but not limited to a public warehouse, at the expense and risk of the owners of the personal property, with the right to sell such stored property in accordance with Chapter 59.18 RCW. 20. HEIRS AND SUCCESSORS Subject to the provision hereof pertaining to assignment and subletting, the covenants and agreements of this Lease shall be binding upon the heirs, legal representatives, successors and assigns of any or all of the parties hereto. 21. HOLDOVER If the Tenant shall, without the written consent of Owner, holdover after the expiration of the term of this Lease, such tenancy shall be for an indefinite period of time on a month to month tenancy, such tenancy may be terminated as provided by the laws of the State of Washington. During such tenancy Tenant agrees to pay to the Owner 110%($1,320) per month of the rent paid prior to Tenant holding over plus 100% leasehold tax on the rent and to be bound by all of the terms, covenants, and conditions of this Lease, so far as applicable. 22. SUBORDINATION Upon Owner entering into any financing or refinancing affecting the Premises, Tenant agrees to execute documents within three (3) days of the request of Owner to subordinate this Lease to any mortgage, (or deed of trust or other security) granted to a financing institution or other secured party or entity. REAL ESTATE PURCHASE AND SALE AGREEMENT 2010 —Page 45 of 49 (between City of Kent and Rose M Lehmann and Charlene M Nelson) The foregoing conditions are mutually agreed to by the Owner and the Tenant. TENANT(s): OWNER: CITY OF KENT Print Name: Suzette Cooke Date: Its Mayor Date: STATE OF WASHINGTON ) ss. COUNTY OF KING ) On this day of , 2010, before me a Notary Public in and for the State of Washington, personally appeared , personally known to me (or proved to me on the basis of satisfactory evidence) to be the person who executed this instrument and acknowledged it to be his/her free and voluntary act and deed for the uses and purposes mentioned in this instrument. -Notary Seal Must Appear Within This Box- IN WITNESS WHEREOF, I have hereunto set my hand and official seal the day and year first above written. NOTARY PUBLIC, in and for the State of Washington, residing at KA. -......L.........� ...--.....� REAL ESTATE PURCHASE AND SALE AGREEMENT 2010 —Page 46 of 49 (between City of Kent and Rose M Lehmann and Charlene M Nelson) STATE OF WASHINGTON ) ss. COUNTY OF KING ) I hereby certify that I know or have satisfactory evidence that Suzette Cooke is the person who appeared before me, and said person acknowledged that she signed this instrument, on oath stated that she is authorized to execute the instrument on behalf of the City of Kent as its Mayor, and such execution to be the free and voluntary act of such party for the uses and purposes mentioned in the foregoing instrument. -Notary Seal Must Appear Within This Box- IN WITNESS WHEREOF, I have hereunto set my hand and official seal the day and year first above written. NOTARY PUBLIC, in and for the State of Washington, residing at My appointment expires P:\Civil\Files\OpenFiles\1469-HusePropertyAcquisition\Lease.docx REAL ESTATE PURCHASE AND SALE AGREEMENT 2010 —Page 47 of 49 (between City of Kent and Rose M Lehmann and Charlene M Nelson) Attachment A Page 1 of 2 THE NORTHWEST QUArrRR OF THE SOUTHWEST QUARTER OF SECTION 10, TOWNSHIP 22 N(.H1H, RA Ue, 5 NAST, WIILLMETTE MERIDIAN, IN KING COUNTY, WASHINGTON; ' TCGETHER WITH THAT' PORTION DESCRIBED AS FCLLOWS: BEGINNING AT THE NORTHWEST CORNER OF THE NORTHWEST QUARTER OF THE SOUTHWEST QUARTER OF SECTION 10, TOWNSHIP 22 NORTH, RANGE 5 EAST, WILLAMETTE MERIDIAN, IN KING COUNTY, WASHINGTON; THENCE SOUTH 1010149. WEST A DISTANCE OF S48.85 FEET TO TFE TRUE POINT OF BEGINNING, THENCE SOUTH 1810'49" WEST, 476.37 FEET; THENCE SCLTH B9004'32" EAST, 45.00 FEET; THENCE NORTH 45051'35" EAST, 62 76 FEET; THENCE NORTH 10045126H WEST, 264.27 FEET; THENCE NORTH 9057142" WEST, 178.35 FEET Tr THE TRUE POINT OF BEGINNINGS EXCEPT THAT PORTICN THEREOF DESCRIBED AS FOLLOWS.- BEGINNING AT THE SOUTHWEST CORNER OF THE NORTHWEST QUARTER OF OF THE SOUTHWEST QUARTER AND RUNNING THENCE EAST ALONG THE SOUTH LINE 40 RODS; TF.ENCE NORTH 20_ RCDS; TFXNCE WEST 40 ROES; THENCE SOUTH 20 RCDS TO THE POINT OF SEGIbNING; EXCEPT THAT PORTION THERECF DESCRIBED AS FOLLOWS: B13CIN14INC AT THE NORTHEAST CORNER OF THE NORTHWEST QUARTER OF THE SOUTHWEST QUARTER OF SECTION 10, TOWNSHIP 22 NORTH, RANGE 5 EAST, WILLAMETTE MERIDIAN, IN KING COUNTY, WPSHINGTON; THENCE SOUTH 1010149" WEST A DISTANCE OF 30 FEET TO THE TRUE POINT OF BEGINNING, THENCE SOUTH 1610949" WEST, 81B.85 FEET; THENCE NORTH 1305C'14" WEST, 114,18 FEET, THENCE NORTH 2O16036" EAST, 119.91 FEET; THENCE NORTH 5003127" WEST, 179.4C FEET; THENCE NORTH 5032'16" WEST, 256.57 FEET; THENCE NORTH 8038108" EAST, 155.9C FEET TO A POINT ON THE SOUTH RIGHT OF WAY MARGIN OF SOUTHEAST 216TH STREET; THENCE ALONG SAID MARGIN SOUTH 89-04-144 EAST, 25.00 FEET TO THE TRUE POINT OF BEGINNING; EXCEPT THE WEST 3C FEET THEREOF CONVEYED TO KING COUNTY FOR 132ND AVENUE SCUTHEAST BY DEED RECORDED UNDER RECORDING NUMBER 141716; EXCEPT THE NORTH 30 FEET THEREOF CONVEYED TO KING COUNTY FOR SOUTHEAST 216TH STREET BY DEED RECORDED UNDER R.ECCRDING NUMBER 2948529; ALSO EXCEPT THE WEST 460 FEET OF THE NCRTH 610 FEET OF THE NORTHEEST QUARTER OF THE NORTHWEST CUARTER CF THE SCUTHWEST QUARTER OF SAID SECTION, TOWNSHIP MD RANGE. REAL ESTATE PURCHASE AND SALE AGREEMENT 2010 —Page 48 of 49 (between City of Kent and Rose M Lehmann and Charlene M Nelson) Attachment A Page 2 of 2 THE W32T 460 PEST OF THE VORTH 610 FEET OF THE NORTHEAST QUARTER OF THS NORTHWEST QUARTER OF THE SOUTHWEST QUARTER OF SECTION 10, TOWNSHIP ZZ NORTH, RANGE 5 EAST, WILLAMETTE MERIDIAN, IN KING COUNTY, WASHINGTON, EXCEPT COUNTY ROAD. REAL ESTATE PURCHASE AND SALE AGREEMENT 2010 —Page 49 of 49 (between City of Kent and Rose M Lehmann and Charlene M Nelson)