Document:

Eightieth Supplemental Indenture

 

                                 Exhibit 4.28

 

(Real Estate Mortgage)

 

 

 

PUGET SOUND ENERGY, INC.

 

TO

 

U.S. BANK NATIONAL
ASSOCIATION,

 

Trustee

 

_______________

 

Eightieth Supplemental Indenture

 

Dated as of April 30, 2004

 

_______________

 

Relating to First Mortgage Bonds

 

_______________

 

Supplemental to Indenture dated as of

 

June 2, 1924, as supplemented and modified

 

_______________

 

 

(NOT PART OF INDENTURE)

 

 

THIS
EIGHTIETH SUPPLEMENTAL INDENTURE, made as of the 30th day of April, 2004,
by and between Puget Sound Energy, Inc., formerly Puget Sound Power & Light
Company, a corporation duly organized and existing under and by virtue of the
laws of the State of Washington (hereinafter sometimes called the "Company"),
party of the first part, and U.S. Bank National Association,
a
national banking association with a
principal corporate trust office at 100 Wall Street, Suite 1600, in the city of
New York and State of New York 10005 (successor to Old Colony Trust Company)
(hereinafter sometimes called the "Trustee"), as Trustee under the First
Mortgage (originally, and before modification thereof by certain supplemental
indentures, called "First and Refunding Mortgage") from Puget Sound Power &
Light Company, a Massachusetts corporation (hereinafter sometimes called the
"Predecessor Company"), dated as of June 2, 1924 (said Mortgage being
hereinafter sometimes called the "Original Mortgage"), as supplemented and
modified by all indentures supplemental thereto heretofore executed and
delivered, party of the second part;

 

WITNESSETH:
that

 

WHEREAS,
the Predecessor Company did by the Original Mortgage, filed for record in the
offices of the Auditors of the Counties of Chelan, Clallam, Cowlitz, Douglas,
Grant, Grays Harbor, Island, Jefferson, King, Kitsap, Kittitas, Lewis, Mason,
Pacific, Pierce, Skagit, Snohomish, Thurston and Whatcom, all in the State of
Washington, and left on file as a chattel mortgage in each of said counties,
convey and pledge certain property therein described to Old Colony Trust
Company, as Trustee, to be held upon the trusts expressed in the Original
Mortgage to equally secure an unlimited authorized amount of mortgage bonds
(therein and herein called the "Bonds") issued or to be issued in one or more
series, all as more fully provided in the Original Mortgage; and

 

WHEREAS,
the Predecessor Company, prior to September 1, 1954, had executed and delivered
to the Trustee thirty-nine supplemental indentures, supplementing and in certain
respects modifying the Original Mortgage and providing for the execution,
certification and delivery of Bonds of various series from time to time pursuant
thereto (which Original Mortgage, as so supplemented and modified, is therein
and herein sometimes called the "First Mortgage"); and

 

WHEREAS,
the Predecessor Company executed and delivered to the Trustee a Fortieth
Supplemental Indenture, dated as of September 1, 1954, which Supplemental
Indenture is divided into two parts, designated as Part I and Part II, and Part
I thereof provided for the establishment and the execution, certification and
delivery initially of Twenty-Five Million Dollars ($25,000,000) principal amount
of a series of Bonds, designated as First Mortgage Bonds, 3-1/2% Series due
1984, and contained certain covenants, restrictions, conditions and provisions
affecting, and provided for certain modifications of, the First Mortgage (the
First Mortgage, as so supplemented and modified by said Part I, being sometimes
in said Fortieth Supplemental Indenture and herein called the "Revised First
Mortgage") and Part II thereof provided for modifications of the Revised First
Mortgage as therein set forth, which modifications became effective on October
20, 1955 (the Revised First Mortgage as so modified by Part II of the Fortieth
Supplemental Indenture as heretofore, hereby, and hereafter supplemented and
modified being sometimes in said Part II and herein called the "Indenture" and
references herein to Sections, Articles or other provisions of the Indenture
being to the revised or modified provisions thereof as set forth in Part II of
the Fortieth Supplemental Indenture); and

 

WHEREAS,
the Predecessor Company has heretofore executed and delivered to the Trustee a
Forty-First Supplemental Indenture dated as of December 1, 1954, a Forty-Second
Supplemental Indenture dated as of July 1, 1957, a Forty-Third Supplemental
Indenture dated as of May 1, 1958, a Forty-Fourth Supplemental Indenture dated
as of November l, 1959, and a Forty-Fifth Supplemental Indenture dated as of
April 1, 1960, all of which mortgaged, pledged, assigned, conveyed and
transferred to the Trustee and subjected to the lien of the Indenture additional
property acquired or constructed, and betterments, improvements and additions
made to the mortgaged property, since the execution and delivery of the Fortieth
Supplemental Indenture; and

 

WHEREAS,
the Company has executed and delivered to the Trustee a Forty-Sixth Supplemental
Indenture dated as of November 10, 1960, whereby the Company has succeeded to
the Predecessor Company with the same effect as if the Company had been named in
the Indenture as the mortgagor company and in the Bonds and coupons as the
obligor thereon or maker thereof, and the Predecessor Company merged into the
Company on November 16, 1960, whereupon the Company acquired all the property,
real, personal or mixed, including all rights, privileges, easements, licenses
and franchises, described in the Indenture and thereby conveyed and mortgaged or
intended so to be, including also all such property acquired by the Predecessor
Company since the execution and delivery of the Original Mortgage, which by the
terms of the Indenture is subjected or intended to be subjected to the lien
thereof; and 

 

WHEREAS,
the Company has executed and delivered to the Trustee the supplemental
indentures set forth herein:

 

	
      Supplemental
      Indenture
	
      Dated
      as of

	
      Forty-Seventh
      Supplemental Indenture
	
      February
      1, 1961

	
      Forty-Eighth
      Supplemental Indenture
	
      November
      1, 1963

	
      Forty-Ninth
      Supplemental Indenture
	
      May
      1, 1964

	
      Fiftieth
      Supplemental Indenture
	
      January
      1, 1966

	
      Fifty-First
      Supplemental Indenture
	
      June
      1, 1967

	
      Fifty-Second
      Supplemental Indenture
	
      February
      1, 1969

	
      Fifty-Third
      Supplemental Indenture
	
      July
      1, 1970

	
      Fifty-Fourth
      Supplemental Indenture
	
      October
      1, 1972

	
      Fifty-Fifth
      Supplemental Indenture
	
      March
      1, 1974

	
      Fifty-Sixth
      Supplemental Indenture
	
      November
      1, 1974

	
      Fifty-Seventh
      Supplemental Indenture
	
      August
      1, 1975

	
      Fifty-Eighth
      Supplemental Indenture
	
      October
      1, 1976

	
      Fifty-Ninth
      Supplemental Indenture
	
      July
      1, 1978

	
      Sixtieth
      Supplemental Indenture
	
      December
      1, 1979

	
      Sixty-First
      Supplemental Indenture
	
      December
      1, 1981

	
      Sixty-Second
      Supplemental Indenture
	
      July
      1, 1984

	
      Sixty-Third
      Supplemental Indenture
	
      January
      1, 1986

	
      Sixty-Fourth
      Supplemental Indenture
	
      April
      1, 1986

	
      Sixty-Fifth
      Supplemental Indenture
	
      April
      1, 1986

	
      Sixty-Sixth
      Supplemental Indenture
	
      August
      1, 1986

	
      Sixty-Seventh
      Supplemental Indenture
	
      November
      1, 1986

	
      Sixty-Eighth
      Supplemental Indenture
	
      September
      1, 1987

	
      Sixty-Ninth
      Supplemental Indenture
	
      February
      1, 1990

	
      Seventieth
      Supplemental Indenture
	
      October
      1, 1990

	
      Seventy-First
      Supplemental Indenture
	
      May
      1, 1991

	
      Seventy-Second
      Supplemental Indenture
	
      August
      1, 1991

	
      Seventy-Third
      Supplemental Indenture
	
      March
      1, 1992

	
      Seventy-Fourth
      Supplemental Indenture
	
      October
      1, 1992

	
      Seventy-Fifth
      Supplemental Indenture
	
      April
      1, 1993

	
      Seventy-Sixth
      Supplemental Indenture
	
      December 1,
      1997

	
      Seventy-Seventh
      Supplemental Indenture
	
      March 1, 1999

	
      Seventy-Eight
      Supplemental Indenture
	
      October
      1, 2000

	
      Seventy-Ninth
      Supplemental Indenture
	
      May
      1, 2003

 

all of
which mortgaged, pledged, assigned, conveyed and transferred to the Trustee and
subjected to the lien of the Indenture additional property acquired or
constructed, and betterments, improvements and additions made to the mortgaged
property since the execution and delivery of the Fortieth Supplemental
Indenture; and

 

WHEREAS,
all Bonds of any series heretofore executed, authenticated and delivered
pursuant to the Original Mortgage, as from time to time supplemented and
modified, have been retired and canceled or payment duly and irrevocably
provided for, except for the series set forth herein:

	
      Principal
      Amount of Bonds
	Series

	
       

      Twenty-Five
      Million Dollars

      ($25,000,000)
	
       

      Secured
      Medium-Term Notes, 

      Series
      A due November 30, 2006

	
       

      One
      Hundred Million Dollars

      ($100,000,000)
	
       

      Secured
      Medium-Term Notes, 

      Series
      A due February 1, 2007

	
       

      Forty-Six
      Million Dollars

      ($46,000,000)
	
       

      Secured
      Medium-Term Notes, 

      Series
      A due June 19, 2006

	
       

      Fifty
      Million Dollars

      ($50,000,000)
	
       

      Secured
      Medium-Term Notes, 

      Series
      B due December 10, 2004

	
       

      Three
      Million Dollars

      ($3,000,000)
	
       

      Secured
      Medium-Term Notes,

      Series
      B due December 1, 2003

	
       

      Eleven
      Million Dollars

      ($11,000,000)
	
       

      Secured
      Medium-Term Notes,

      Series
      B due December 2, 2003

	
       

      Thirty
      Million Dollars

      ($30,000,000)
	
       

      Secured
      Medium-Term Notes,

      Series
      B due May 27, 2004

	
       

      Fifty-Five
      Million Dollars

      ($55,000,000)
	
       

      Secured
      Medium-Term Notes,

      Series
      B due February 1, 2024

	
       

      Three
      Hundred Million Dollars

      ($300,000,000)
	
       

      First
      Mortgage Bonds,

      Pledged
      Series A due December 1, 2027

	
       

      Two
      Hundred Million Dollars

      ($200,000,000)
	
       

      First
      Mortgage Bonds,

      Pledged
      Series A due June 15, 2018

	
       

      One
      Hundred Million Dollars

      ($100,000,000)
	
       

      First
      Mortgage Bonds,

      Pledged
      Series B due

      March 9, 2029

	
       

      One
      Hundred Fifty Million Dollars

      ($150,000,000)
	
       

      First
      Mortgage Bonds,

      Pledged
      Series B due

      March 9, 2009

	
       

      Two
      Hundred Twenty-Five Million Dollars

      ($225,000,000)
	
       

      First
      Mortgage Bonds,

      Pledged
      Series B due

      

      February 22, 2010

	
       

      Twenty-Five
      Million Dollars

      ($25,000,000)
	
       

      First
      Mortgage Bonds,

      Pledged
      Series B due 

      September 8, 2008

	
       

      Two
      Hundred Sixty Million Dollars

      ($260,000,000)
	
       

      First
      Mortgage Bonds, 

      Pledged
      Series C, due February 1, 2011

	
       

      Forty
      Million Dollars

      ($40,000,000)
	
       

      First
      Mortgage Bond, Pledged

       Series
      C due January 16, 2004 

	
       

      One
      Hundred Thirty-Eight Million Four Hundred 

      Sixty
      Thousand Dollars

      ($138,460,000)
	
       

      5%
      First Mortgage Bonds, 

      Pledged
      Series C due March 1, 

      2031

	
       

      Twenty-Three
      Million Four Hundred 

      Thousand
      Dollars

      ($23,400,000)
	
       

      5.10%
      First Mortgage Bonds, 

      Pledged
      Series C due March 1,

      2031

 

which
Bonds are now outstanding and constitute the only Bonds of the Company
outstanding under the Indenture; and

 

WHEREAS,
effective as of the opening of business on January 4, 1971, The First National
Bank of Boston succeeded Old Colony Trust Company as Trustee under the Indenture
by reason of the merger of Old Colony Trust Company into The First National Bank
of Boston; and

 

WHEREAS,
effective as of October 2, 1995, State Street Bank and Trust Company
succeeded The First National Bank of Boston as Trustee under the Indenture;
and

 

WHEREAS,
effective as of February 15, 2003, U.S. Bank National Association succeeded
State Street Bank and Trust Company as Trustee under the Indenture;
and

 

WHEREAS,
the Company has entered into an Indenture (the "Debenture Indenture") dated as
of December 1, 1997 with U.S. Bank National Association (as successor to
State Street Bank and Trust Company) as trustee (in such capacity, the
"Debenture Indenture Trustee") pursuant to which the Company proposes to issue
from time to time its Senior Notes (the "Senior Notes") and the Company has
agreed to make certain payments to the Debenture Indenture Trustee in respect of
the principal of, premium, if any, and interest on such Senior Notes;
and

 

WHEREAS,
the Company desires to execute and deliver this Eightieth Supplemental
Indenture, in accordance with the provisions of the Indenture, for the purpose
of confirming the lien of the Indenture on certain property acquired or
constructed by the Company since the execution and delivery of the Original
Mortgage and on certain betterments, improvements and additions made by the
Company to property previously described in the Indenture.

 

NOW,
THEREFORE, WITNESSETH, that, pursuant to and in execution of the powers,
authorities and obligations conferred, imposed and reserved in the Indenture,
and pursuant to and in execution of every other power, authority and obligation
thereto appertaining and/or enabling, in order to secure the payment of the
principal of, and the premium, if any, and interest on, the Bonds issued and to
be issued under the Indenture, and secured thereby and hereby at any time
outstanding according to their tenor and effect, and the performance of all the
covenants and conditions therein and herein and in said Bonds contained, and for
the purpose of confirming the lien of the Indenture, said Puget Sound Energy,
Inc., organized and existing under the laws of the State of Washington, in
consideration of the premises and of One Dollar ($1.00) and other good and
valuable consideration to it duly paid by the Trustee, at or before the
execution and delivery of these presents, the receipt whereof is hereby
acknowledged, has granted, bargained, sold, conveyed, transferred, assigned,
remised, released, mortgaged, set over and confirmed and by these presents does
grant, bargain, sell, convey, transfer, assign, remise, release, mortgage, set
over and confirm unto U.S. Bank National Association, as Trustee, and to its
successor or successors in the trust created by the Indenture, and to said
Trustee and its assigns forever, for the uses and purposes created by the
Indenture, all property, real, personal or mixed, including all rights,
privileges, easements, licenses and franchises, described in the Indenture and
thereby conveyed and mortgaged or intended so to be, including also all such
property acquired by the Company since the execution and delivery of the
Original Mortgage, which by the terms of the Indenture is subjected or intended
to be subjected to the lien thereof, and including also all such property as the
Company may hereafter acquire which by the terms of the Indenture is subjected
or intended to be subjected to the lien thereof, excepting from the foregoing,
however, all property included within the foregoing general description, whether
now owned or hereafter acquired, which by the provisions of the Indenture is
excepted or to be excepted from the conveyance and lien of the Indenture, or
which has heretofore been released from the lien of the Indenture or otherwise
disposed of by the Company free from the lien of the Indenture in accordance
with the provisions thereof:

 

INCLUDING
NEVERTHELESS in the property hereby conveyed and confirmed to the Trustee
(without limiting the generality of the foregoing general description of such
property and without prejudice to the conveyance and confirmance of all such
property by such general description) the following:

 

All
property, real, personal or mixed, together with all buildings or improvements
thereon and the appurtenances thereto, located in the State of Washington and
described below or conveyed to the Company by the deeds listed on the list of
properties and deeds below, to which deeds and the records thereof in the County
Auditor's office of the respective counties in the State of Washington below
stated (in all cases where said deeds and/or records are below specified)
reference is hereby made for a more particular description of the property
hereby conveyed and confirmed to the Trustee and its respective successor or
successors and assigns as aforesaid, to wit:

 

List of
Real Estate in the State of Washington Acquired by

Puget
Sound Energy, Inc. to Date, and Not Heretofore Specifically

Described
in Any Prior Supplemental Indenture* 

Puget
Sound Energy, Inc.

 

 

ISLAND COUNTY

 

	
      Section:
	
      1

       

	
      Township:
	
      33

       

	
      Range:
	
      1

       

	
      Description:
	
      The
      East 100 feet of the West 500 feet of the North 208 feet of the Northwest
      1⁄4 of the Southwest 1⁄4 of Section 1, Township 33 North, Range 1 E. W.M.,
      except the North 20 feet thereof for county road known as Troxell
      Road.

       

      Situate
      in the County of Island, State of Washington.

       

	
      Deed
      From:
	
      Jack
      and Mary Truex

	
      Deed
      Records

      Auditors
      File No.
	
       

      92023588

 

** 
All numbers in the row following the designation "Township," indicate townships
north of the Willamette Base Line, and the Letters "E" and "W" in the row
following the designation "Range," indicate east or west, as the case may be, of
the Willamette Meridian.*

KING COUNTY

 

	
      Section:
	
      14

       

	
      Township:
	
      24

       

	
      Range:
	
      6

       

	
      Description:
	
      That
      portion of the West half of the Northeast quarter of Section 14, Township
      24 North, Range 6 East, W.M., in King County, Washington; and that portion
      of Lot 4 of King County short plat number 387053, recorded under Recording
      Number 8712240543, lying Westerly of the West margin of the Bonneville
      transmission line easement as condemned in U.S. District Court under Cause
      No. 4253, and Easterly of Klahanie Division No. 22, according to the plat
      thereof, recorded in Volume 160 of Plats, pages 9 through 16, in King
      County, Washington, described as follows:

       

      Commencing
      at the center of said Section 14; thence South 88°26'31" East along the
      East-West centerline thereof 161.33 feet to the true point of beginning;
      thence North 30°15'47" West a distance of 118.08 feet; thence North
      59°44'13" East a distance of 285.00 feet; thence South 30°15'47" East a
      distance of 215.36 feet; thence South 14°44'13" West a distance of 69.44
      feet to a point on said East-West centerline of said Section 14; thence
      continuing South 14°44'13" West a distance of 99.76 feet; thence South
      59°44'13" West a distance of 165.35 feet; thence North 30°15'47" West a
      distance of 216.92 feet to a point on said East-West centerline and the
      true point of beginning;

       

      Together
      with a temporary road access easement described as follows:

       

      That
      portion of Lot 4, King County short plat number 387053, recorded under
      Recording Number 8712240543, in King County, Washington, and that portion
      of Lot 4, King County short plat number 1186017, recorded under Recording
      Number 8712240542, in King County, Washington, lying Westerly of the West
      margin of the Bonneville transmission line easement as condemned in U.S.
      District Court under Cause Number 4253, and Easterly of Klahanie Division
      No. 22, according to the plat thereof, recorded in Volume 160 of Plats,
      page(s) 9 through 16, inclusive, in King County, Washington, more
      particularly described as follows:

       

      Commencing
      at a point on the North line of said Lot 4 of King County short plat
      number 387053 at the center of Section 14, Township 24 North, Range 6
      East, Willamette Meridian, in King County, Washington; thence South
      88°26'31" East along the North line of said Lot 4 a distance of 161.33
      feet; thence South 30°15'47" East a distance of 216.92 feet; thence North
      59°44'13" East a distance of 21.74 feet to the point of beginning; thence
      South 62°06'47" East a distance of 191.26 feet to a point of curve to the
      right from which the radius point bears South 27°53'13" West distant 50.00
      feet; thence Southeasterly along said curve through a central angle of
      37°34'53", an arc distance of 32.80 feet to the point of tangent thereof;
      thence South 24°31'53" East a distance of 178.45 feet, more or less, to
      the north margin of the traveled way of the Issaquah-Fall City Road;
      thence North 58°44'02" East along North margin 20.14 feet; thence North
      24°31.53" West a distance of 176.08 feet to a point of curve to the left
      from which the radius point bears South 65°28'07" West distant 70.00 feet;
      thence Northwesterly along said curve through a central angle of
      37°34'53", an arc distance of 45.91 feet to the point of tangent thereof;
      thence North 62°06'47" West a distance of 42.63 feet to a point of curve
      to the right from which the radius point bears North 27°53'13" East
      distant 50.00 feet; thence Northerly along said curve through a central
      angle of 54°40'36", an arc distance of 47.41 feet to the point of tangent
      thereof; thence North 7°26'11" West a distance of 75.86 feet; thence South
      59°44'13" West a distance of 21.70 feet; thence South 7°26'11" East a
      distance of 21.09 feet to a point of curve to the right from which the
      radius point bears South 82°33'49" West distant 30.00 feet, thence
      Southwesterly along said curve through a central angle of 125°19'24", an
      arc distance of 65.62 feet to the point of tangent thereof; thence North
      62°06.47" West a distance of 27.82 feet; thence South 59°44'13" West a
      distance of 23.55 feet to the point of beginning; and 

       

      Together
      with an easement for drainage purposes, described as follows:

       

      That
      portion of the Southwest quarter and of the Southeast quarter of Section
      14, Township 24 North, Range 6 East, Willamette Meridian, in King County,
      Washington, lying westerly of the Bonneville power administration
      transmission line easement as condemned in U.S. District Court under Cause
      No. 4253, Easterly of Klahanie Drive S.E. as dedicated in the plat of
      Klahanie Division 19 as recorded in Volume 159 of Plats, pages 18 through
      29, records of King County, Washington, Northerly of the Northerly margin
      of Issaquah-Fall City Road as established by said plat of the Klahanie
      Division 19, and Southerly of a line parallel with and 450 feet
      Northwesterly of said northerly margin when measured at right angles or
      radially northerly to said margin.

       

      SUBJECT
      TO THE FOLLOWING:

      1.
      Restrictions
      and easements contained in Declaration of Protective Restrictions and
      Easements filed under Recording  No. 8502060789. Said
      restrictions as amended by Recording Nos. 8706220709, 8708130435,
      9002010774, 9009170504, 9111201806, and 9112131736.

      2. Restrictions
      contained in King County Short Plat No. 387053 under Recording
      

         
      No. 8712240543.

      3. Agreement
      for Sewer System Improvements under Recording 

         
      No. 8406050884.

      4. Concomitant
      Zoning Agreement under Recording No. 8502050872, as 

         
      amended by Recording No. 8710060754

      5. Agreement
      and the Terms and Conditions thereof recorded under Recording

         
      Number 8502050871.

       

	
      Deed
      From:
	
      Lowe
      Enterprises Northwest, Inc.

       

	
      Deed
      Records

      Auditors
      File No.
	
       

      9209041067

KING COUNTY

 

	
      Section:
	
      8

       

	
      Township:
	
      23

       

	
      Range:
	
      5

       

	
      Description:
	
      All
      that portion of the South 1⁄2 of Section 8, Township 23 North, Range 5 East
      W.M., described as follows:

       

      Beginning
      at the East 1⁄4 corner of said Section 8, from which the Northeast corner of
      said section bears North 01°02'09" East; thence North 89°27'25" West,
      along the North line of said South 1⁄2, a distance of 2,647.56 feet to an
      existing center of section monument; thence South 01°02'40" West, along
      the North-South center of section line of said Section 8, a distance of
      60.00 feet to the Southerly margin of North 8th
      Street, said point being on the South line of the North 60.00 feet of said
      South 1⁄2; Thence South 89°27'25" East, along said South line, 187.07 feet
      to a point on the Northeasterly margin of the Burlington Northern Railroad
      right-of-way and the true point of beginning; Thence continuing South
      89°27'25" East, along said South line, 225.49 feet to a point on the
      Westerly margin of Houser Way North (Railroad Avenue); Thence South
      18°00'40" East, along said Westerly margin, 82.32 feet to a point of
      tangency with a 543.68 foot radius circular curve to the right; Thence
      Southerly, along said curve and said Westerly margin, through a central
      angle of 09°49'26" an arc distance of 93.22 feet to a point on the
      Northeasterly margin of said railroad right-of-way; Thence North 57°49'50"
      West, along said Northeasterly margin, 321.37 feet to the true point of
      beginning;

       

      Situate
      in the City of Renton, County of King, State of Washington.

       

      SUBJECT
      TO THE FOLLOWING:

       

      1. Current
      general taxes, not yet due and payable, for the year in which this deed
      

          
      is recorded; and

      2. Reservations
      contained in deed recorded under Recording No. 7108160312,
      

          
      records of King County, Washington; and

      3. Unpaid
      special utility connection charges for water and sanitary sewer
      

          
      payable to City of Renton, as disclosed by Declaration of Segregation
      

          
      recorded December 4, 1991 under Recording No. 9112040402 and
      

          
      Declaration of Segregation recorded August 10, 1992 under Recording
      

          
      No. 9208100964, records of King County, Washington; and

      4. Dedication
      of North five (5) feet of subject property for additional street
      right-

          
      of-way for North Eighth Street as disclosed by instrument recorded under
      

          
      Recording No. 9212081719.

       

	
      Deed
      From:
	
      Paccar
      Inc.

       

	
      Deed
      Records

      Auditors
      File No.
	
       

      9212312458

 

KING COUNTY

 

	
      Section:
	
      21

       

	
      Township:
	
      24

       

	
      Range:
	
      6

       

	
      Description:
	
      That
      portion of the Southwest quarter of the Southeast quarter of Section 21,
      Township 24 North, Range 6 East, W.M., in King County, Washington,
      described as follows:

       

      Beginning
      at a point on the Westerly margin of the Northern Pacific right of way 315
      feet West and 8 feet South of the Northwest corner of the Southeast
      quarter of the Southeast quarter of Section 21; thence south 16° East 283
      feet along said Westerly margin of the Northern Pacific Railway right of
      way; thence South 60° West 191 feet to the existing road; thence North 32°
      West 164 feet; thence North 19° West 154 feet; thence North 68°30' East
      238 feet to the point of beginning.

       

      SUBJECT
      TO THE FOLLOWING:

       

      1. Easement
      to Puget Sound Power & Light Co. filed under Recording
      No. 2899547.

      2. Easement
      to Water and Sewer District No. 8, filed under Recording
      No. 8802260581.

      3. Agreement
      dated 7-19-90 filed under Recording No. 9007311493.

      4. Assessment:
      Local Improvement District No. 4 to Water
      District #82.

      5. Assessment:
      Local Improvement District No. 16 to Water
      District #82.

       

	
      Deed
      From:
	
      Bass
      & Bass Partnership

       

	
      Deed
      Records

      Auditors
      File No.
	
       

      9301041390

 

 

KING COUNTY

 

	
      Section:
	
      15

       

	
      Township:
	
      25

       

	
      Range:
	
      5

       

	
      Description:
	
      The
      North 4.85 feet of the West 179.99 feet of the Southwest Quarter of the
      Northeast Quarter and the South 228.49 feet of the West 179.99 feet of the
      Northwest Quarter of the Northeast Quarter, all in Section 15, Township 25
      North. Range 5 East, W.M., in King County, Washington;

       

      EXCEPT
      the West 30 feet thereof deeded to King County for roads by Deeds recorded
      under Recording numbers 1940770 and 4915599.

       

      TOGETHER
      WITH AN EASEMENT for ingress and egress over the South 83.39 feet of the
      North 88.24 feet of the West 179.99 feet of the Southwest Quarter of the
      Northeast Quarter of Section 15, Township 25 North, Range 5 East, W.M, in
      King County, Washington;

       

      EXCEPT
      the West 30 feet thereof

       

      SUBJECT
      TO THE FOLLOWING:

      1. Easement
      for slopes recorded under King County Recording Nos. 4915599 and
      4912689.

      2. Easement
      for water pipelines recorded under King County Recording No.
      9205270207.

      3. Easement
      for utilities recorded under King County Recording No.
      6124267.

       

	
      Deed
      From:
	
      City
      of Bellevue

       

	
      Deed
      Records

      Auditors
      File No.
	
       

      9702070525

KING COUNTY

 

	
      Section:
	
      14

       

	
      Township:
	
      23

       

	
      Range:
	
      8

       

	
      Description:
	
      All
      that portion of Burlington Northern Railroad Company's (formerly Northern
      Pacific Railway Company) 100 foot wide Tanner to Issaquah, Washington
      Branch Line right of way, now discontinued, being 50 feet wide on each
      side of said Railroad Company's Main Track centerline as originally
      located and constructed upon, over and across the Northeast Quarter of the
      Northeast Quarter of the Southwest Quarter of Section 14, Township 23
      North, Range 8 East of the Willamette Meridian, King County, Washington,
      bounded by two lines drawn at right angles to said Main Track centerline
      distant, respectively, 35.70 feet and 95.70 feet Northwesterly of the East
      line of the Southwest Quarter of said Section 14, as measured along said
      Main Track centerline; Also,

       

      All
      that portion of said Railroad Company's 100 foot wide Branch Line right of
      way, being 50 feet wide on each side of said Main Track centerline upon,
      over and across the South Half of the Southeast Quarter of the Northwest
      Quarter of said Section 14, bounded by two lines drawn at right angles to
      said Main Track centerline distant, respectively, 631.52 feet and 691.52
      feet Northwesterly of the East line of the Southwest Quarter of said
      Section 14, as measured along said Main Track centerline.

       

      Subject,
      however, to all existing interests, including but not limited to all
      reservations, rights-of-way and easements of record or
      otherwise.

	
      Deed
      From:
	
      Burlington
      Northern Railroad Company

       

	
      Deed
      Records

      Auditors
      File No.
	
       

      9702130298

KING COUNTY

 

	
      Section:
	
      27

       

	
      Township:
	
      25

       

	
      Range:
	
      06

       

	
      Description:
	
      PARCEL
      A:

       

      That
      portion of Section 27, Township 25 North, Range 6 East. W.M., in
      King County, Washington, described as follows:

       

      Beginning
      on the south line of said Section 27, 818.28 feet easterly of
      the southwest corner thereof; 

      thence
      north 0°04'03" west 666.56 feet:

      thence
      north 89°19'16" east 181.95 feet:

      thence
      south 0.02'29" east 667.17 feet;

      thence
      south 89.30'41" west 181.66 feet to the point of
      beginning;

      EXCEPT
      any portion thereof lying within the north half of the southwest quarter
      of the southwest quarter of said Section 27;

      AND
      EXCEPT the south 30 feet thereof for road;

      AND
      EXCEPT that portion, if any, which lies westerly of the following
      described line:

       

      Commencing
      at the southwest corner of the east half of the southwest quarter of the
      southwest quarter of said Section at a point which bears north 89°30'41"
      east 666.57 feet, more or less, from the southwest corner of said
      Section 27;

      thence
      north 0°05'37" west along the west line of said subdivision
      666.05 feet;

      thence
      north 89.19'16" east 151.95 feet. to the TRUE POINT OF
      BEGINNING:

      thence
      south 0°04'03" east 666.56 feet to the south line of said
      subdivision, and the terminus of said line description.

       

       

       

      PARCEL
      B:

       

      That
      portion of the east half of the southwest quarter of the southwest quarter
      of Section 27, Township 25 North, Range 6 East. W.M., in
      King County, Washington, described as follows:

       

      Beginning
      at the southwest comer of said subdivision at a point which bears north
      89°30'41" east 666.57 feet, more or less, from the southwest corner
      of said Section 27:

      thence
      north 0°05'37" west along the west line of said subdivision 666.05
      feet:

      thence
      north 89°19'16" east 151.95 feet:

      thence
      south 0°04'03" east 666.56 feet to the south line of said
      subdivision;

      thence
      south 89°30'41" west 151.95 feet along the south line of said
      subdivision to the point of beginning:

      EXCEPT
      any portion thereof lying within the north half of said
      subdivision;

      AND
      EXCEPT the south 30 feet thereof for road.

       

      ALL
      SUBJECT TO THE FOLLOWING:

      1. Easement
      for roadway, Recording No. 4788419;

      2. Reservation
      of coal, oil, gas, Recording No. 3916471.

       

	
      Deed
      From:
	
      Marvin
      H. Morris

       

	
      Deed
      Records

      Auditors
      File No.
	
       

      9809231415

KING COUNTY

 

	
      Section:
	
      1

       

	
      Township:
	
      21

       

	
      Range:
	
      4

       

	
      Description:
	
      Lot
      2, Block 1, Christopher Garden Tracts, according to the plat thereof
      recorded in Volume 23 of plats, page 6, records of King County,
      Washington;

      EXCEPT
      the South 420 feet and EXCEPT the North 450 feet of the West
      149.18 feet thereof;

      AND
      EXCEPT the North 455 feet of said Lot 2 lying east of the last
      described parcel and EXCEPT that portion of Lot 2, Block 1,
      Christopher Garden Tracts, according to the plat thereof recorded in
      Volume 23 of Plats, page 6, described as follows:

       

      Beginning
      at the southwest corner of the above described parcel of
land;

      thence
      North along the west line of the above described parcel,
      25 feet;

      thence
      East parallel with the south line of the above described parcel,
      25 feet;

      thence
      South parallel with the west line of said parcel,
      25 feet;

      thence
      West along the south line of said parcel, 25 feet to the Point of
      Beginning.

       

      Situate
      in the County of King, State of Washington. 

       

      SUBJECT
      TO THE FOLLOWING: Easements, restrictions, reservations, covenants and
      agreements.

       

	
      Deed
      From:
	
      Puget
      Western, Inc.

       

	
      Deed
      Records

      Auditors
      File No.
	
       

      19991115000282

KING COUNTY

 

	
      Section:
	
      4

       

	
      Township:
	
      21

       

	
      Range:
	
      4

       

	
      Description:
	
      The
      following described real estate, situated in the County of KING, State of
      Washington:

       

      That
      portion of Lots 1 and 2 lying westerly of State Highway in Block 1 of
      Hall's Acre Tracts, according to the plat thereof recorded in Volume 20 of
      Plats, page 25, in King County, Washington.

       

      SUBJECT
      TO THE FOLLOWING:

      1. Cable
      Television Easement, Recording No. 8606240663.

       

	
      Deed
      From:
	
      Peter
      and Arlene Kogut; Ben and Marie Kartes; and Carl and Judith
      Bjorkman

       

	
      Deed
      Records

      Auditors
      File No.
	
       

      20000131001461

KING COUNTY

 

	
      Section:
	
      36

       

	
      Township:
	
      24

       

	
      Range:
	
      7

       

	
      Description:
	
      Lot
      2, King County Short Plat Number 675001, recorded under Recording Number
      7510100716, being a portion of the Northwest quarter of Section 36,
      Township 24 North, Range 7 East, Willamette Meridian, in King County,
      Washington;

      together
      with an easement for ingress, egress and utilities as set forth
      instruments recorded under Recording Numbers 7508220654, 7509100606 and
      7508220653.

       

      SUBJECT
      TO any portion of said easements lying within the above described
      property; and

       

      SUBJECT
      TO THE FOLLOWING

      1. Consent
      for the use of Puget Sound Energy transmission line right of way and the
      terms and conditions thereof:

      Purpose:
      Storm Drain And Sediment Pond

      Area
      Affected: A Portion Of Said Premises

      Recorded:
      November 24, 1999

      Recording
      Number: 19991124001250

      2. Memorandum
      of Agreement and the terms and conditions thereof:

      Between:
      Weyerhaeuser Real Estate Company, a Washington corporation

      And:
      City of Snoqualmie

      Recorded:
      October 21, 1999

      Recording
      Number: 19991021001630

      Regarding:
      Comprehensive Voluntary Agreement for Snoqualmie Ridge Parks

      3. Easement
      and the terms and conditions thereof:

      Purpose:
      Electric transmission line

      Area
      Affected: The description contained therein is not sufficient to determine
      its exact location within the property herein described.

      Recorded:
      November 4, 1908

      Recording
      Number: 1258319

      4. Easement
      and the terms and conditions thereof:

      Disclosed
      By: Deed

      In
      Favor Of: Not disclosed

      Purpose:
      Road

      Affects:
      North 60 feet of said premises and other property

      Recorded:
      October 11, 1956

      Recording
      Number: 4738718

      Note:
      Said easement is also delineated and/or dedicated on the face of the short
      plat.

      5. Easement
      and the terms and conditions thereof:

      Grantee:
      United States of America

      Purpose:
      Transmission line

      Area
      Affected: Westerly portion of said premises and other
property

      Recorded:
      June 1, 1967

      Recording
      Number: 6183192

      Note:
      Said easement is also delineated and/or dedicated on the face of the short
      plat.

      6. Easement
      and the terms and conditions thereof:

      Grantee:
      United States of America

      Purpose:
      Road approximately 14 feet in width with such additional widths as are
      necessary to provide for cuts, fills and turnouts and for curves at angle
      points

      Area
      Affected: The description contained therein is not sufficient to determine
      its exact location within the property herein described.

      Recorded:
      June 1, 1967

      Recording
      Number: 6183192

      7. Easement
      and the terms and conditions thereof:

      Reserved
      By: Harry H. Olson inc., a Washington corporation, its heirs or assigns
      ingress, egress and utilities

      Area
      Affected: The description contained therein
      is not sufficient to determine its exact location within the property
      herein described

      

      Recorded:
      May 20, 1969

      Recording
      Number: 6512634

      8. Easement
      and the terms and conditions thereof:

      Grantee:
      Adjacent owners and future owners

      Purpose:
      Ingress, egress and utilities

      Area
      Affected: The Westerly 60 feet of said premises and other
      property

      Recorded:
      August 22, 1975

      Recording
      Number: 7508220654

      Note:
      Said easement is also delineated and/or dedicated on the face of the short
      plat.

      9. Easement
      and the terms and conditions thereof:

      Grantee:
      Adjacent owners and future owners

      Purpose:
      Ingress, egress and utilities

      Area
      Affected: Westerly portion of said premises and other
property

      Recorded:
      August 22, 1975

      Recording
      Number: 7508220655

      Note:
      Said easement is also delineated and/or dedicated on the face of the short
      plat.

      10. Easement
      and the terms and conditions thereof:

      Grantee:
      Adjacent owners and future owners

      Purpose:
      Ingress, egress and utilities

      Area
      Affected: Westerly portion of said premises and other
property

      Recorded:
      September 10, 1975

      Recording
      Number: 7509100606

      Said
      easement contains a provision for bearing the cost of maintenance, repair
      or reconstruction of said roads by the users.

      Note:
      Said easement is also delineated and/or dedicated on the face of the short
      plat.

      Said
      easement is a re-recording of easement recorded under Recording Number
      7508220653.

      11. Underground
      Utility Easement and the terms and conditions thereof:

      Grantee:
      Puget Sound Power & Light Company, a Washington
      corporation

      Purpose:
      Underground electric system

      Area
      Affected: The east 10 feet and the north 30 feet of said premises and
      other property

      Recorded:
      December 15, 1975

      Recording
      Number: 7512150865

      Contains
      covenant prohibiting structures over said easement or other activities
      which might endanger the underground system.

      12. Easement
      and the terms and conditions thereof:

      Grantee:
      Puget Sound Energy 

      Purpose:
      Electric transmission and/or distribution system

      Area
      Affected: Northwesterly portion of said premises and other
      property

      Recorded:
      August 11, 1999

      Recording
      Number: 19990811001847

      13. Exceptions
      and reservations contained in deed:

      From:
      Harry H. Olson, Inc.

      Recorded:
      May 20, 1969

      Recording
      Number: 6512634

      As
      Follows: Reservation of oil and mineral rights

      14. Easement
      and the terms and conditions thereof:

      Purpose:
      Stormwater pond and associated improvements and appurtenances

      Area
      Affected: A Northerly portion and other property

      Recorded:
      August 25, 2000

      Recording
      Number: 200000825000894

       

	
      Deed
      From:
	
      Weyerhaeuser
      Real Estate Company

       

	
      Deed
      Records

      Auditors
      File No.
	
       

      20000907000538

KING COUNTY

 

	
      Section:
	
      2

       

	
      Township:
	
      25

       

	
      Range:
	
      6

       

	
      Description:
	
      That
      portion of Section 2, Township 25 North, Range 6 East, W.M., in King
      County, Washington, described as follows:

       

      Beginning
      at the south quarter corner of said section; 

      thence
      north 85°05'38" west, 1350.85 feet; 

      thence
      north 01°01'15" west, 30 17 feet to the true point of beginning,
      

      thence
      north 01°01'15" west, 597.12 feet; 

      thence
      south 88°47'58" west, 316.33 feet;

      thence
      south 00°55'52" east, 563 17 feet; 

      thence
      south 85°05'38" east, 319.03 feet to the true point of
      beginning;

       

      SUBJECT
      TO THE FOLLOWING

      1. Easement
      and the terms and conditions referenced therein, including, but not
      

      limited
      to, the following:

      Grantee:
      United States of America

      Purpose:
      Electric transmission lines

      Area
      Affected: Portion of said premises

      Recorded:
      June 25, 1956

      Recording
      Number: 4705329

      2. Easement
      and the terms and conditions referenced therein, including, but not
      

      limited
      to, the following:

      For
      The Benefit Of: Owners

      Purpose:
      Ingress and egress

      Area
      Affected: A 30 foot strip through said premises

      Recorded:
      June 17, 1987

      Recording
      Number: 8706170915

      3. Reservation
      of all coal, oil, gas and mineral rights, and rights to explore for the
      same contained in deed from Weyerhaeuser Timber Co., a Washington
      corporation.

      Recorded:
      August 28, 1948

      Recording
      Number: 3832932

       

	
      Deed
      From:
	
      Tadeusz
      and Danuta Kochel

       

	
      Deed
      Records

      Auditors
      File No.
	
       

      20010628001325

KING COUNTY

 

	
      Section:
	
      30

       

	
      Township:
	
      24

       

	
      Range:
	
      8

       

	
      Description:
	
      That
      portion of the Northwest Quarter of Section 30, Township 24 North, Range
      8, East of the Willamette Meridian, King County, Washington, lying
      easterly of the following described line; beginning at the Northwest
      corner of said Section 30; thence along the North line of said Section 30,
      South 88°50'20" East a distance of 377.16 feet; thence South 5°49'20" East
      a distance of 108.05 feet; thence South 1°09'10" West a distance of 105.38
      feet; thence South 6°23'10" West a distance of 178.91 feet; thence South
      9°48'10" East a distance of 145.61 feet; thence South 73°13'40" East a
      distance of 120.70 feet; thence North 88°30'00" East a distance of 371.05
      feet; thence South 55°00'00" East a distance of 227.68 feet to a point of
      the easterly right-of-way line of the Northern Pacific Railroad; thence
      along the arc of a compound curve to the right, the chord of which bears
      South 74°59'50" East a distance of 476.16 feet; thence continuing along
      said right line South 48°40'10" East a distance of 1,135.20 feet to the
      point of beginning; thence leaving said right-of-way line, North 41°19'50"
      East a distance of 140 feet, more or less, to the left bank of the
      Snoqualmie River and the terminus of said line; and

       

      Lying
      Westerly of the following described line; beginning at the center of said
      Section 30; thence North 0°22'10" East along the North-South centerline of
      said Section 1,077.88 feet to the true point of beginning; thence North
      48°40'10" West 157.82 feet to the true point of beginning of the said
      line; thence North 42°13'20" East 120 feet to the southerly margin of
      South East 69th Street and the terminus of said line.

       

      Except
      any portion lying within the 100 foot right-of-way of the Northern Pacific
      Railroad and SE 69th Street.

       

	
      Deed
      From:
	
      Puget
      Western Corp.

       

	
      Deed
      Records

      Auditors
      File No.
	
       

      20030109000860

KITSAP COUNTY

 

	
      Section:
	
      31

       

	
      Township:
	
      25

       

	
      Range:
	
      2

       

	
      Description:
	
      Lots
      A and B of Short Plat No. 4944 recorded August 17, 1989 under Auditor's
      File No. 8908170129, being a portion of Government Lot 4, Section 31,
      Township 25 North, Range 2 East, W.M., in Kitsap County,
      Washington;

       

      SUBJECT
      TO THE FOLLOWING:

       

      1. Easement
      disclosed by Commissioner's Journal, Volume 21, Pages 106,
      affecting portion of vacated County Road No. 321;

      2. Easement
      for underground electric distribution system, Recording
      No. 8901270143;

      3. Covenants,
      conditions, restrictions and easements contained in short plat, Recording
      No. 8908170129;

      4. Question
      or location of lateral boundaries of second class tide (or shore)
      lands;

      5. Any
      prohibition of or limitation of use, occupancy or improvement of the land
      resulting from rights of the public or riparian owners to use any portion
      which is now or has been formerly covered by water;

      6. Any
      claim of right, title or interest which may be asserted by the State of
      Washington or the public to the beaches to accretions to the
      uplands;

      7. Paramount
      rights and easements in favor of the United States for commerce,
      navigation, fisheries and the production of power;

      8. Exceptions
      and Reservations contained in deed from the State of Washington, affecting
      tidelands, Recording No. 72708, Volume 80,
      Page 574;

      9. Waiver
      of damages by reason of construction of a roadway granted to Kitsap
      County, Recording No. 244951, Volume 196,
      Page 440.

       

	
      Deed
      From:
	
      Charles Youdarian

       

	
      Deed
      Records

      Auditors
      File No.
	
       

      9206260100

KITSAP COUNTY

 

	
      Section:
	
      8

       

	
      Township:
	
      25

       

	
      Range:
	
      1

       

	
      Description:
	
      Lot
      A of Short Plat No. 2254, recorded July 29, 1980 under Auditor's No.
      8007290098, described as follows: The east 410 feet of the north half of
      the south 15 acres of the northwest quarter of the southeast quarter,
      Section 8, Township 25 North, Range 1 East, W.M., in Kitsap County,
      Washington.

       

      SUBJECT
      TO THE FOLLOWING:

       

      1. Easement
      and right to enter granted to USA, Recording No. 796425;

      2. Easement
      under Recording No. 960607 and 962386;

      3. Easement
      re underground electric, 8211220005;

      4. Covenants,
      conditions contained in short plat No. 8007290098;

      5. Agreement
      under Recording No. 8103060092.

       

	
      Deed
      From:
	
      Ralph
      and Pamela Martinez

       

	
      Deed
      Records

      Auditors
      File No.
	
       

      9212310021

KITSAP COUNTY

 

	
      Section:
	
      8

       

	
      Township:
	
      24

       

	
      Range:
	
      1

       

	
      Description:
	
      PARCEL
      I:

       

      That
      portion of Section 8, Township 24 North, Range 1 East, W.M., in Kitsap
      County, Washington, described as follows:

       

      Commencing
      at the Northeast corner of the Northwest quarter of the Southeast quarter
      of said Section 8; thence South 2°38'21" West along the East line of said
      Northwest quarter of the Southeast quarter a distance of 939.00 feet;
      thence North 88°44'43" West a distance of 540.00 feet to the True Point of
      Beginning; thence North 2°48'07" East a distance of 25.00 feet; thence
      North 88°44'43" West a distance of 436.34 feet; thence South 2°48'07" West
      a distance of 80.32 feet to the Northeast corner of the Southwest quarter
      of the Southwest quarter of the Northwest quarter of the Southeast
      quarter; thence North 88°44'49" West along the North line of said
      Southwest quarter of the Southwest quarter of the Northwest quarter of the
      Southeast quarter, a distance of 325.50 feet to the West line of said
      Southwest quarter of the Southwest quarter of the Northwest quarter of the
      Southeast quarter; thence South 2°51'22" West along the West line of said
      Southwest quarter of the Southwest quarter of the Northwest quarter of the
      Southeast quarter, a distance of 331.67 feet to the Northwest corner of
      Government Lot 1, said Section 8; thence continue South 2°51'22" West
      along the West line of said Government Lot 1, a distance of 331.67 feet to
      the Southwest corner of the North half of the North half of said
      Government Lot 1; thence along the South line of said North half of the
      North half of Government Lot 1, South 88°45'57" East a distance of 652.26
      feet; thence South 2°44'52" West a distance of 331.55 feet; thence South
      88°46'31" East a distance of 44.08 feet; thence South 2°44'52" West a
      distance of 346.10 feet to the Northeasterly right of way line of State
      Highway No. 21; thence South 58°31'05" East along said right of way line a
      distance of 57.00 feet; thence leaving said right of way, run North
      2°44'52" East a distance of 374.83 feet; thence South 88°46'31" East a
      distance of 55.92 feet; thence North 2°44'52" East a distance of 165.77
      feet; thence North 88°46'14" West a distance of 25.00 feet; thence North
      2°44'52" East a distance of 165.77 feet; thence South 88°45'57" East a
      distance of 22.74 feet; thence North 2°51'22" East a distance a 331.54
      feet to the North line of said Government Lot 1; thence North 88°45'23"
      West along the North line of said Government Lot 1, a distance of 37.85
      feet; thence leaving the North line of said Government Lot 1, run North
      2°48'07" East a distance of 386.84 feet to the True Point of
      Beginning.

       

      PARCEL
      II:

       

      An
      easement for ingress and egress over, along, above and across the
      following: 

       

      A
      portion of the West half of the South half of the North half of Government
      Lot 1, Section 8 , Township 24 North, Range 1 East, W.M., in Kitsap
      County, Washington, described as follows:

       

      Beginning
      at the Northwest corner of the South half of the North half of said
      Government Lot 1; thence South 88°45'57" East along the North line of said
      South half of the North half a distance of 566.25 feet to the True Point
      of Beginning; thence South 45°18'23" East a distance of 115.60 feet to the
      East line of said West half of the South half of the North half; thence
      South 2°44'52" West along said East line, a distance of 67.22 feet; thence
      North 45°18'23" West a distance of 213.28 feet to the North line of the
      South half of the North half of said Government Lot 1; thence South
      88°45'57" East along said North line a distance of 72.70 feet to the True
      Point of Beginning.

       

      ALL
      SUBJECT TO THE FOLLOWING:

       

      1. Easement
      disclosed by instrument under Recording No. 577002;

      2. Agreement
      re sewer, Recording No. 1083530.

       

	
      Deed
      From:
	
      Olympic
      Business Park Partners

       

	
      Deed
      Records

      Auditors
      File No.
	
       

      9401030128

KITSAP COUNTY

 

	
      Section:
	
      3

       

	
      Township:
	
      25

       

	
      Range:
	
      2

       

	
      Description:
	
      That
      portion of the North half of the Southwest quarter of the Southwest
      quarter of Section 3, Township 25 North, Range 2 East, W.M.
      in Kitsap County, Washington, lying Southwesterly of State Hwy #305;
      except that portion lying Southwesterly of a line drawn parallel to and
      95 feet Southwesterly of the centerline of State Hwy
      #305.

       

	
      Deed
      From:
	
      Kitsap
      County

       

	
      Deed
      Records

      Auditors
      File No.
	
       

      9503140070

KITSAP COUNTY

 

	
      Section:
	
      8

       

	
      Township:
	
      24

       

	
      Range:
	
      1

       

	
      Description:
	
      Without
      limiting the generality of the foregoing, Grantor releases, conveys and
      quit-claims, Grantor's interest in that certain easement, dated as of
      April 27, 1953, and recorded under Kitsap County Auditor's File No.
      577002.

       

      That
      portion of Section 8, Township 24 North, Range 1 East, W.M. in Kitsap
      County, Washington, described as follows:

       

      Commencing
      at the Northeast corner of the Northwest quarter of the Southeast quarter
      of said Section 8; thence South 02°38'21" West along the East line of said
      Northwest quarter of the Southeast quarter, a distance of 939.00 feet;
      thence North 88°44'43" West a distance of 540.00 feet to the true point of
      beginning; thence North 02°48'07" East, a distance of 25.00 feet; thence
      North 88°44'43" West a distance of 436.34 feet; thence South 02°48'07"
      West a distance of 80.32 feet to the Northeast corner of the Southwest
      quarter of the Southwest quarter of the Northwest quarter of the Southeast
      quarter; thence North 88°44'49" West along the North line of said
      Southwest quarter of the Southwest quarter of the Northwest quarter of the
      Southeast quarter, a distance of 325.50 feet to the West line of said
      Southwest quarter of the Southwest quarter of the Northwest quarter of the
      Southeast quarter; thence South 02 51'22" West along the West line of
      said Southwest quarter of the Southwest quarter of the Northwest quarter
      of the Southwest quarter, a distance of 331.67 feet to the Northwest
      corner of government lot 1, said Section 8; thence continue South
      02°51'22" West along the west line of said government lot 1, a
      distance of 331.67 feet to the Southwest corner of the North half of the
      North half of said government lot 1; thence along the South line of
      said North half of the North half of government lot 1, South
      88 45'57" East a distance of 493.56 feet; thence South 45°18'23" East
      213.29 feet; thence South 02°44'52" West 184.79 feet; thence South
      88°46'31" East 44.08 feet to the Northeasterly right-of-way line; thence
      South 02°44'52" West 346.10 feet of State Highway No. 21; thence
      South 58°30'57" East along said right-of-way line a distance of 57.02
      feet; thence leaving said right-of-way, run North 02°44'52" East a
      distance of 374.83 feet; thence South 88°46'31" East a distance of 55.92
      feet; thence North 02°44'52" east a distance of 165.77 feet; thence North
      88°46'14" West a distance of 25.00 feet; thence North 02°44'52" East a
      distance of 165.77 feet; thence South 88°45'57" East a distance of 22.74
      feet; thence North 02°51'22" East a distance of 331.54 feet to the North
      line of said government lot 1 ; thence North 88°45'23" West along the
      North line of said government lot 1, a distance of 37.85 feet; thence
      leaving the North line of said government lot 1, run North 02°48'07"
      East a distance of 386.84 feet to the true point of
beginning.

       

	
      Deed
      From:
	
      Erwin
      Skelly

       

	
      Deed
      Records

      Auditors
      File No.
	
       

      3039536

 

KITTITAS COUNTY

 

	
      Section:
	
      11

       

	
      Township:
	
      17

       

	
      Range:
	
      18

       

	
      Description:
	
      Parcel
      2, as described and/or delineated on that certain Survey as recorded May
      19, 1995, in Book 21 of Surveys, at pages 1 and 2, under Auditor's File
      581659, records of Kittitas County, Washington, being a portion of the
      Southwest 1⁄4 of the Northwest 1⁄4 of Section 11, Township 17 North, Range 18
      East, W.M., in the County of Kittitas, State of Washington.

       

      SUBJECT
      TO THE FOLLOWING:

      1. Easement
      for irrigation ditch across a portion of said premises recorded in Book A
      of Water Rights, page 90;

      2. Easement
      for a permanent easement and right of way over, upon, under and across
      said land recorded under Auditor's File No. 160328;

      3. Easement
      for electric transmission and distribution lines recorded under Auditor's
      File No. 581165 in favor of Puget Sound Power & Light
      Company;

      4. All
      matters contained and/or delineated on Survey recorded under Auditor's
      File No. 581659;

      5. Any
      question that may arise due to the shifting or change in the course of
      Doughty Ditch due to said ditch having changed its course;

      6. Any
      prohibition or limitation on the use, occupancy, or improvements of the
      land resulting from the rights of the public or riparian owners to use any
      waters;

      7. Future
      adjudication of Yakima County Superior Court Cause No. 77-2-01484-5 being
      an action to determine the right to withdraw, divert or otherwise use the
      surface waters of the Yakima River Drainage Basin.

       

	
      Deed
      From:
	
      Edward
      and Mary McCann

       

	
      Deed
      Records

      Auditors
      File No.
	
       

      200203150036

PIERCE COUNTY

 

	
      Section:
	
      12

       

	
      Township:
	
      19

       

	
      Range:
	
      4

       

	
      Description:
	
      Parcel
      A:

       

      Beginning
      at a point 490 feet East of the Southwest corner of the Northwest quarter
      of the Northeast quarter of Section 12, Township 19 North, Range 4 East of
      the W.M., in Pierce County, Washington; thence North 240.00 feet; thence
      East 160.00 feet; thence South 240.00 feet; thence West 160 feet to the
      point of beginning. except old Military Road.

       

      Parcel
      B:

       

      The
      East 160 feet of the West 650 feet, measured along the North line of the
      North 225 feet, measured parallel with the West line of the following
      described tract: commencing at the Southwest corner of the Northwest
      quarter of the Northeast quarter of Section 12, Township 19 North, Range 4
      East of the W.M., in Pierce County, Washington; thence North 0°09'05"
      East, 15 feet to the true point of beginning; thence North 0°09'05" East
      450 feet; thence South 88°41'53" East 885 feet; thence South 0°09'05" West
      450 feet; thence North 88°41'53" West 885 feet to the place of
      beginning.

       

	
      Deed
      From:
	
      Albert
      and Mabel Bryan

       

	
      Deed
      Records

      Auditors
      File No.
	
       

      9207300475

PIERCE COUNTY

 

	
      Section:
	
      25
      and 26

       

	
      Township:
	
      20

       

	
      Range:
	
      5

       

	
      Description:
	
      A
      portion of the James E. Williamson and Michael Connel Donation Land Claims
      located in Sections 25 and 26, Township 20 North, Range 5 East of the
      Willamette Meridian, in Pierce County Washington: Beginning at a point on
      the South line of Williamson Donation Land Claim, said point being South
      89 Degrees 12'24" East, a distance of 1476.09 feet from the Southwest
      corner of said Williamson Donation Land Claim; thence North 46 Degrees
      47'09" East a distance of 19.66 feet; thence North 86 Degrees 41'20" East
      a distance of 461.33 feet; thence South 88 Degrees 42'41" East a distance
      of 292.19 feet; thence South 01 Degrees 17'19" West a distance of 60.00
      feet, more or less, to a point on the Northerly right-of-way of the
      existing Puget Sound Power & Light Company canal; thence Southwesterly
      on said Northerly right-of-way through the following courses: Along a
      337.94 foot radius curve to the left, the radial line of which bears South
      01 Degrees 19'17" West, through a central angle of 38 Degrees 04'47", an
      arc distance of 224.60 feet; thence South 53 Degrees 12'32" West a
      distance of 455.86 feet; thence along a 237.94 foot radius curve to the
      right, through a central angle of 08 Degrees 35'41", an arc distance of
      35.69 feet; thence South 61 Degrees 48'13" West a distance of 333.38 feet,
      more or less, to a point 1350.00 feet East of, when measured
      perpendicularly, and parallel with, the West line of Connel Donation Land
      Claim; thence South 00 Degrees 45'32" West, on said line, a distance of
      7.12 feet, more of [sic] less, to a point 552.28 feet South of the South
      line of the Williamson Donation Land Claim; thence North 89 Degrees 12'24"
      West, on a line parallel with the South line of the Williamson Donation
      Land Claim, a distance of 445.99 feet; thence North 46 Degrees 47'09" East
      a distance of 794.93 feet, more or less, to the point of
      beginning.

       

	
      Deed
      From:
	
      Linda
      and Daniel Reed

       

	
      Deed
      Records

      Auditors
      File No.
	
       

      9203040147

PIERCE COUNTY

 

	
      Section:
	
      1

       

	
      Township:
	
      19

       

	
      Range:
	
      4

       

	
      Description:
	
      PARCEL
      A:

       

      Commencing
      at the Southeast corner of the Northwest quarter of the Southeast quarter
      of Section 1, Township 19 North, Range 4 East of the W.M.,
      in Pierce County, Washington; thence run North 80 rods, more or less,
      to the Northeast corner of the Northwest quarter of the Southeast quarter
      of said Section; thence West 450 feet to a point near the base of the
      bluff; thence Southwesterly along said bluff to a point on the South line
      of the Northwest quarter of the Southeast quarter of said Section, said
      point being 650 feet West of the place of beginning; thence East along
      said South line to place of beginning.

       

      PARCEL
      B:

       

      Beginning
      at the intersection of the center line of the Northern Pacific Railway
      Company right of way with the South line of the Southeast quarter of
      Section 1, Township 19 North, Range 4 East of the W.M., in
      Pierce County, Washington; thence West along said South line to the
      Southwest corner of said Southeast quarter; thence North along the West
      line of said Southeast quarter to the Northwest corner of the Southwest
      quarter of the Southeast quarter; thence East along the North line of said
      subdivision to the Northeast corner of the Southwest quarter of the
      Southeast quarter; thence North to the Northwest corner of the Northeast
      quarter of the Southeast quarter; thence East along the North line of said
      Northeast quarter of the Southeast quarter to the center line of the
      Northern Pacific Railway Company's right of way; thence South 7 45"
      West along said center line of railroad to the point of
      beginning.

       

       

      EXCEPT
      the Northern Pacific Railway Company's right of way.

       

      ALL
      SUBJECT TO THE FOLLOWING:

      1. Second-half
      1995 general taxes and surface water management charges.

      2. Terms,
      conditions and covenants, including liability for future taxes, roll
      backs, penalties and interest due to change in use, breach of, or removal
      from the reclassification of the land as farm and agricultural, as
      contained in application therefor recorded under Auditor's No.
      8403060195.

      3. Easement
      for electric power transmission lines and telephone lines, including the
      terms, covenants and provisions thereof, in favor of United States of
      America, recorded under Auditor's No. 1520686.

      4. Lease,
      including the terms, provisions, covenants and conditions thereof, between
      Orrin H. Shattuck and Ila Dee Shattuck, as lessor, and Kenneth Dean
      Scholz and Jo Ann Scholz, as lessee, dated as of December 29,
      1980 and recorded under Auditor's No. 8104060225, as the same has been
      amended pursuant to that certain Addendum to Lease dated as of
      September 9, 1988 and recorded under Auditor's No.
      8904100036.

      5. Security
      interest of Northwest Farm Credit Services, ACA, as disclosed by Financing
      Statement filed July 1, 1993 under Auditor's No.
      9307010410.

       

	
      Deed
      From:
	
      Ila
      Dee Shattuck

       

	
      Deed
      Records

      Auditors
      File No.
	
       

      9508140061

PIERCE COUNTY

 

	
      Section:
	
      32

       

	
      Township:
	
      20

       

	
      Range:
	
      6

       

	
      Description:
	
      North
      60 feet of the following described property:

       

      Commencing
      at a point 29 1/2 rods West of the Southeast corner of
      Section 32, Township 20 North, Range 6 East of W.M.,
      running thence North to the right of way of the Pacific Coast Power
      Company 39 rods, more or less; THENCE in a Westerly direction along
      the line of said right of way 33 rods, 1 foot, 6 inches;
      THENCE South to a point 15 rods North of the section line; THENCE
      East 16 rods; THENCE South 15 rods to the section line; THENCE
      East along the section line to the point of beginning.

       

      EXCEPT
      South 30 feet for road.

       

      Situate
      in the County of Pierce, State of Washington.

       

      SUBJECT
      TO THE FOLLOWING:

      1. Wire
      fence lying 1 foot more or less South of the North line of said
      premises as disclosed by record of survey recorded on December 17,
      1993, under Auditor's File No. 9312171020

       

	
      Deed
      From:
	
      Walter
      and Hildegard Stachelsheid

       

	
      Deed
      Records

      Auditors
      File No.
	
       

      9502160194

PIERCE COUNTY

 

	
      Section:
	
      32

       

	
      Township:
	
      20

       

	
      Range:
	
      6

       

	
      Description:
	
      The
      North 60 feet of the following described property:

       

      Commencing
      at the Southeast corner of Section 32, Township 20 North,
      Range 6 East, of the Willamette Meridian; THENCE running North
      37 rods to Pacific Coast Power Company's right of way; THENCE in a
      Westerly direction along line of said right of way 29 1/2 rods;
      THENCE South 39 rods; THENCE East along County Road to place of
      beginning.

       

      EXCEPT
      that portion conveyed to Pierce County by instrument recorded
      September 26, 1977, under Auditor's File No. 2768438.

       

      Situate
      in the County of Pierce, State of Washington.

       

      SUBJECT
      TO THE FOLLOWING:

       

      1. Easement,
      including the terms, covenants and provisions as may be contained therein,
      granted/reserved by instrument

      Recorded:  April 30,
      1992

      Auditor's
      File No.:  9204300585 Records of Pierce County,
      Washington

      In
      Favor Of: Puget Sound Power & Light Company, a Washington
      Corporation

      For:  The
      right to construct, operate, maintain, repair, replace and enlarge one or
      more electric transmission and/or distribution lines

      Said
      easement contains, among other things, the following:

      Covenants
      against interference and blasting.

      Rights
      of access for purposes of maintenance and repair.

      Right
      to cut all brush and timber and trim all trees standing or growing which
      constitute a menace or danger to said lands, as provided for in said
      easement.

      2. Wire
      fencing lying 2 feet more or less, South of the North line of said
      premises as 

          
      disclosed by Record of Survey recorded on December 17, 1993, under
      Auditor's File 

           No.:
      9312171020.

       

	
      Deed
      From:
	
      Rebecca
      and John Verhonick

       

	
      Deed
      Records

      Auditors
      File No.
	
       

      9502160193

PIERCE COUNTY

 

	
      Section:
	
      7

       

	
      Township:
	
      20

       

	
      Range:
	
      5

       

	
      Description:
	
      That
      portion of East Valley Highway East lying within or adjacent to the
      hereinafter described Tract "Z", and lying Easterly of a line parallel
      with the 40 feet Easterly of the B line shown on that certain plan map of
      definite location now of record and on file in the Office of the Director
      of Pierce County Public Works and Utilities in Tacoma, Washington, and
      bearing date of approval February 28, 1994, revised October 9, 1995, and
      bearing County Road Project No. CRP 5327, entitled P.S.P.L. Trailrace
      Bridge No. 7205-A, all being in Section 7, Township 20 North, Range 5 East
      of the W.M. in Pierce County, Washington, in the Dieringer
      area.

       

      Tract"Z"

       

      Lots
      3 to 7 inclusive, WHITE RIVER GARDEN TRACTS, according to plat recorded in
      Book 7 of plats at page 100, in Pierce County, Washington; lying East of
      the Northern Pacific Company Right-of-Way.

       

      AND;

       

      Beginning
      at a point 1009.20 feet East and 701.10 feet North of the quarter section
      corner on the West line of Section 7, Township 20 North, Range 5 East of
      the W.M., in Pierce County, Washington; running thence East 200 feet;
      thence North 296.54 feet; thence West 184 feet; thence Southerly to place
      of beginning.

       

	
      Deed
      From:
	
      Pierce
      County

       

	
      Deed
      Records

      Auditors
      File No.
	
       

      N/A
      (Pierce County Ordinance
No. 97-98)

SKAGIT COUNTY

 

	
      Section:
	
      4

       

	
      Township:
	
      34

       

	
      Range:
	
      2

       

	
      Description:
	
      That
      portion of the Southwest 1⁄4 of Section 4, Township 34 North, Range 2 East,
      W.M., being more particularly described as follows:

       

      Commencing
      at the intersections of the West right-of-way line of the Thompson Road
      with the South right-of-way line of the Stevenson Road. Said intersection
      also being the Northeast corner of that certain parcel of property owned
      by Puget Sound Power & Light Company as shown on Survey recorded in
      Book 9 of Surveys at Pages 125 and 126 under Auditor's File No.
      9002230003; thence North 89 degrees 51'22" West along the North line of
      said Puget parcel a distance of 503.42 feet to an angle point in said
      Puget parcel; thence South 0 degrees 57'30" West along the boundary of
      said Puget parcel a distance of 522.36 feet to an angle point in said
      Puget parcel, said angle point being the True Point of Beginning; thence
      South 89 degrees 59'24" West along said Puget boundary a distance of
      144.67 feet to an angle point in said boundary; thence North 0 degrees
      57'53" East along said Puget boundary a distance of 124.62 feet; thence
      South 88 degrees 13'25" East a distance of 144.65 feet to the intersection
      with said Puget boundary; thence South 0 degrees 57'30" West along said
      Puget boundary a distance of 120.11 feet to the point of
      beginning.

       

	
      Deed
      From:
	
      Judy
      Northcutt

       

	
      Deed
      Records

      Auditors
      File No.
	
       

      9204140092

SKAGIT COUNTY

 

	
      Section:
	
      17

       

	
      Township:
	
      34

       

	
      Range:
	
      4

       

	
      Description:
	
      Parcel A

       

      Tracts
      1, 2, 3 and 4, "PARKER BUSINESS CENTER", as per plat recorded in Volume 11
      of Plats, pages 91 and 96, inclusive, records of Skagit County,
      Washington.

       

      Parcel
      B

       

      That
      portion of the 20 foot wide private road abutting College Way on the South
      lying between the West line of Lot 4 and the East Line of Lot 1 produced
      North in the plat of "PARKER BUSINESS CENTER", as per plat recorded in
      Volume 11 of Plats, pages 91 to 96 inclusive.

       

	
      Deed
      From:
	
      MV
      Associates

       

	
      Deed
      Records

      Auditors
      File No.
	
       

      9307210130

SKAGIT COUNTY

 

	
      Section:
	
      19
      and 20

       

	
      Township:
	
      35

       

	
      Range:
	
      5

       

	
      Description:
	
      The
      land referred to herein is situated in the County of Skagit, State of
      Washington, and is described as follows:

       

      That
      part of the Northeast 1⁄4 of the Southeast 1⁄4 of Section 19, Township 35
      North, Range 5 East, W.M., lying Southeasterly of the paved
      highway.

       

      AND
      that part of the Northwest 1⁄4 of the Southwest 1⁄4 of Section 20, Township 35
      North, Range 5 East, W.M., lying North of the County Road along the South
      line of said Northwest 1⁄4 of the Southwest 1⁄4 as conveyed to Skagit County
      by Deed recorded July 3, 1906 in Volume 63 of Deeds, Page 345, and South
      and West of the centerline of Hansen Creek, EXCEPT a tract as described as
      follows:

       

      Beginning
      at the Northeast corner of the Southeast 1⁄4 of Section 19, Township 35
      North, Range 5 East, W.M.; thence running South 88 degrees 59' West along
      the North line of said Southeast 1⁄4, a distance of 131.35 feet; thence
      South 52 degrees 11'30" West a distance of 329.54 feet; thence South 37
      degrees 48'30" East a distance of 508.4 feet; thence North 52 degrees
      11'30" East a distance of 957.41 feet; thence North 50 degrees 05' West a
      distance of 47.48 feet to a point on the North line of said Southwest 1⁄4 of
      said Section 20; thence South 88 degrees 59' West along the North line of
      said Southwest 1⁄4 a distance of 640.08 feet to the point of
      beginning.

       

      EXCEPT
      from the above described premises, the West 40 acres thereof, and ALSO
      EXCEPT from the above described premises that portion, if any, lying West
      of the West line of the East 12.80 acres of the Northwest 1⁄4 of the
      Southwest 1⁄4 of said Section 20, lying Southwesterly of Hanson
      Creek.

       

      ALSO
      EXCEPT that portion conveyed to Skagit County for road purposes by Deed
      recorded June 24, 1947, under Auditor's File No. 405887.

       

	
      Deed
      From:
	
      Vergil
      and Rosalie Van Fleet

       

	
      Deed
      Records

      Auditors
      File No.
	
       

      9312210137

SKAGIT COUNTY

 

	
      Section:
	
      4

       

	
      Township:
	
      34

       

	
      Range:
	
      2

       

	
      Description:
	
      That
      portion of the Southwest 1/4 of Section 4, Township 34 North,
      Range 2 East, W.M., being more particularly described as
      follows:

       

      Commencing
      at the intersections of the West right-of-way line of the Thompson Road
      with the South right-of-way line of the Stevenson Road. Said intersection
      also being the Northeast corner of that certain parcel of property owned
      by Puget Sound Power & Light Company as shown on Survey recorded in
      Book 9 of Surveys at Pages 125 and 126, under Auditor's File No.
      9002230003; thence North 89 degrees 51'22" West a long the North line of
      said Puget parcel a distance of 503.42 feet to an angle point in said
      Puget parcel and the true point of beginning; thence South 89 degrees
      51'22 " East along the South line of Stevenson Road a distance of
      56.14 feet; thence South 0 degrees 57'30" West a distance of
      315.72 feet; thence North 89 degrees 02'30" West a distance of
      56.13 feet to a point on the East line of that certain tract of land
      conveyed under Auditor's File No. 8411200012; thence South 0 degrees
      57'30" West along the East line of said tract a distance of
      87.33 feet; thence North 88 degrees 13'25" West a distance of
      144.65 feet to a point on the West line of said Tract described under
      Auditor's File No. 8411200012; thence North 0 degrees 57'53" East a
      distance of 398.12 feet, more or less, to the South line of Stevenson
      Road; thence South 89 degrees 51'22" East along the South line of
      Stevenson Road a distance of 145 feet, more or less, to the point of
      beginning.

       

	
      Deed
      From:
	
      Judy
      Northcutt

       

	
      Deed
      Records

      Auditors
      File No.
	
       

      9411070076

SKAGIT COUNTY

 

	
      Section:
	
      5

       

	
      Township:
	
      34

       

	
      Range:
	
      4

       

	
      Description:
	
      Lot
      5, Burlington Binding Site Plan No. 2-97, approved July 14, 1997, recorded
      December 18, 1997, under Auditor's File No. 9712180060, filed in Volume 13
      of Short Plats, pages 67 - 68, being portion of the Southwest 1⁄4 of the
      Southwest 1⁄4 of Section 5, Township 34 North, Range 4 East,
      W.M.

       

	
      Deed
      From:
	
      Lakha
      Investments Co. LLC

       

	
      Deed
      Records

      Auditors
      File No.
	
       

      200109250065

 

SNOHOMISH COUNTY

 

	
      Section:
	
      25

       

	
      Township:
	
      29

       

	
      Range:
	
      5

       

	
      Description:
	
      The
      South 400 feet lying East of the East line of that certain easement
      granted to the City of Seattle as filed under Snohomish County Recording
      No. 299747 of the following described property:

       

      All
      that portion of tracts 38, 39 and 40, Plat of Glenwood Division "A",
      according to the plat thereof recorded in Volume 7 of Plats,
      page 46, Records of Snohomish County, Washington, described as
      follows:

       

      Beginning
      at the Southwest corner of tract 38, Plat of Glenwood Division "A";
      thence running North along West line of tracts 38, 39 and 40 to the
      Northwest corner of tract 40;

      thence
      East along North line of tract 40, 434.14 feet;

      thence
      South to a point on the South line of tract 38, 435.32 feet East
      of the Southwest corner of tract 38;

      thence
      West along South line of tract 38 to the point of
      beginning.

       

      Together
      with a 20 foot wide easement for ingress and egress over and across a
      portion of lots 38, 39 & 42 of said Plat of Glenwood Division "A"
      lying East of the West margin of the Bonneville Snohomish-Arlington
      Transmission Line right-of-way; and West of the East margin of Seattle
      City Light Skagit Transmission Line right-of-way and South of the North
      margin of the Bonneville Power Administration Sedro Wooley Tap to Chief
      Joseph-Snohomish No. 2 Transmission Line right-of-way.

       

      Situate
      in the County of Snohomish, State of Washington.

       

      SUBJECT
      TO THE FOLLOWING:

      1. Right
      to enter said premises to make repairs and the right to cut brush and
      trees which constitute a menace or danger to utility lines located on
      property adjoining said premises as granted by instrument recorded under
      Recording Number 299747.

      (affects
      portion of lots 38, 39, AND 40)

      2. Easement
      and the terms and conditions thereof:

      Grantee:
      United States of America and Its Assigns

      Purpose:
      Transmission Lines

       Area Affected: A strip of
      land 100 feet in width lying 50 feet on either side of and parallel
      with the survey line of the United States of America for its Bonneville
      Power Administration's Sedro Woolley Tap To Chief Joseph-Snohomish
      No. 2 Transmission Line

      Recorded:
      October 13, 1967

      Recording
      Number: 1991322

       

	
      Deed
      From:
	
      Doo
      Young and Shannon Chang

	
      Deed
      Records

      Auditors
      File No.
	
       

      9510260028

SNOHOMISH COUNTY

 

	
      Section:
	
      35

       

	
      Township:
	
      31

       

	
      Range:
	
      4

       

	
      Description:
	
      Parcel
      A:

       

      The
      East 200 00 feet of Lot 3 in Block 2 of Plat of Loma Lake, according to
      plat recorded in Volume 13 of Plats at page(s) 24 through 27, inclusive,
      in Snohomish County, Washington, except the south 160 feet
      thereof.

       

      Parcel
      B:

       

      A
      non-exclusive easement for ingress, egress, utility and telephone system
      operation purposes over, under, across, and through the following
      described tract of land

       

      Commencing
      at the most Westerly corner of said Lot 3 in Block 2 of Plat of Loma
      Lake according to plat recorded in Volume 13 of Plats at page(s) 24
      through 27, inclusive, in Snohomish County, Washington thence North
      60°24'30" East along the Easterly right of way of 150th Place NW (a county
      road) a distance of 69.35 feet to the true point of
beginning;

      Thence
      continuing North 60°24'30" East along the Easterly right of way of said
      150th Place NW, a distance of 27.58 feet;

      Thence
      South 54°32'14" East parallel with the Northerly line of said Lot 3 a
      distance of 752.20 feet to a point on the West line of the East 200.00
      feet of said Lot 3;

      Thence
      South 16°5'6" West along the West line of the East 200.00 feet of said Lot
      3 a distance of 26 50 feet to a point that bears South 54°32'14" East from
      the true point of beginning;

      Thence
      North 54°32'14" West parallel with the Northerly line of said Lot 3 a
      distance of 772 62 feet to the true point of beginning

       

      Parcel
      C:

       

      An
      easement for ingress, egress, utility and telephone system operation
      purposes over, under, across, and through the following described property
      as created in statutory warranty deed recorded under Recording No.
      8601240197.

       

      The
      North 35 feet of the West 30 feet of the South 160 of the East 200 feet of
      Lot 3 in Block 2 of Plat of Loma Lake according to plat recorded in Volume
      13 of Plats at page(s) 24 through 27, inclusive, in Snohomish County,
      Washington

       

	
      Deed
      From:
	
      Sprint
      Communications Co. L.P.

       

	
      Deed
      Records

      Auditors
      File No.
	
       

      200202070331

 

THURSTON COUNTY

 

	
      Section:
	
      4

       

	
      Township:
	
      17

       

	
      Range:
	
      2

       

	
      Description:
	
      That
      part of the South half of the Southeast quarter of Section 4,
      Township 17 North, Range 2 West, W.M., described as follows: Beginning at
      a point on the South line of the county road known as Israel Road 272.3
      feet West of its intersection with the Westerly line of secondary State
      Highway No. 1-M; thence running West along the said Westerly line of
      Israel Road 450 feet; thence South 526 feet; thence East 270 feet to the
      said Westerly line of highway; thence Northeasterly along the said
      Westerly line 273 feet; thence North 320 feet to the point of
      beginning

       

      in
      Thurston County, Washington.

       

      SUBJECT
      TO THE FOLLOWING:

      1. Easement
      and conditions contained therein as granted in instrument:

      Recorded:  May 22,
      1974

      Recording
      No.:  913298

      In
      Favor Of:  Puget Sound Power & Light Company, a
      Washington 

                     corporation

      For:  Electric
      transmission and distribution line and appurtenances thereto

      Affects:  A
      portion of said land

      2. Easement
      and conditions contained therein as granted in instrument:

      Recorded:  July 8,
      1982

      Recording
      No.:  8207080058

      In
      Favor Of:  Puget Sound Power & Light Company, a
      Washington 

                     corporation

      For:  Electric
      transmission and distribution line and appurtenances thereto

      Affects:  The
      Northerly 20 feet

       

	
      Deed
      From:
	
      Camille
      Brock

       

	
      Deed
      Records

      Auditors
      File No.
	
       

      9212300169

THURSTON COUNTY

 

	
      Section:
	
      1

       

	
      Township:
	
      18

       

	
      Range:
	
      1

       

	
      Description:
	
      Lot
      1 of Binding Site Plan No. BSP-020006 LA as recorded May 27, 2003 under
      Recording No. 3535174;

       

      Together
      with that portion of the Southeast quarter of Section 1, Township 18
      North, Range 1 West, W.M., contained within a strip of land 50 feet in
      width, the sidelines of which are 25.00 feet on each side of the following
      described centerline:

       

      Commencing
      at the Southeast corner of the Northeast quarter of the Southeast quarter
      of said Section; thence North 01 degrees 56'06" East, along the East line
      of said Section, 5.00 feet to the point of beginning; thence North 88
      degrees 03'54" West 283.37 feet; thence North 53 degrees 09'52" West
      270.23 feet; thence North 01 degrees 56'06" East 100.39 feet; thence North
      70 degrees 24'18" East 302.68 feet; thence South 88 degrees 03'54" East
      223.43 feet to the East line of said Section 1 and the end of this
      centerline description.

       

      Excepting
      therefrom the East 30 feet for Meridian Road NE.

       

      Situate
      in the City of Lacey, County of Thurston, State of
Washington.

       

      SUBJECT
      TO THE FOLLOWING:

      1. Reservations
      of all coal and minerals.

      Recording
      No.: 596230

      Pursuant
      To: Affidavit recorded under Recording No. 8811170065, said mineral rights
      include sand and gravel.

      In
      connection therewith we note statutory warranty deed recorded October 2,
      1990 under Recording No. 9010020163.

      2. All
      covenants, conditions, restrictions, reservations, easements or other
      servitudes, if any, disclosed by the survey recorded under Recording No.
      8201080002.

      Rights
      or benefits, if any, which may be disclosed by the recorded document(s)
      above affecting land outside the boundary described in Schedule
      A.

      3. All
      covenants, conditions, restrictions, reservations, easements or other
      servitudes, if any, disclosed by the survey recorded under Recording No.
      8204020004.

      Rights
      or benefits, if any, which may be disclosed by the recorded document(s)
      above affecting land outside the boundary described in Schedule
      A.

      4. Easement
      and the terms and conditions thereof:

      Grantee:
      South Sound Utility Co., Inc., 

      Purpose:
      A right of way for the construction, maintenance, use, operation, repair
      and replacements of water transmission lines 

      Area
      Affected: A portion of said premises

      Recorded:
      July 14, 1986

      Recording
      No.: 8607140034

      5. Covenants,
      conditions and restrictions imposed by instrument recorded on April 8,
      1993, under Recording No. 9304080184, including, but not limited to,
      liability for assessments levied by the community association, and rights
      or benefits which may be disclosed affecting land outside the boundary
      described in Schedule A.

      6. Covenants,
      conditions and restrictions imposed by instrument recorded on April 8,
      1993, under Recording No. 9304080186 and modified by instrument recorded
      under Recording No(s). 9306160055, 9306160058, 3232741, 3357955, 3363604
      and 3363605, including, but not limited to, liability for assessments
      levied by the community association, and rights or benefits which may be
      disclosed affecting land outside the boundary described in Schedule
      A.

      7. Provisions
      contained in the Articles of Incorporation and Bylaws of Meridian Campus
      Commercial Owners' Association.

      8. All
      covenants, conditions, restrictions, reservations, easements or other
      servitudes, if any, disclosed by the survey recorded under Recording No.
      3990346.

      Rights
      or benefits, if any, which may be disclosed by the recorded document(s)
      above affecting land outside the boundary described in Schedule
      A.

      9. Easement
      and the terms and conditions thereof:

      Grantee:
      City of Lacey, a municipal corporation

      Purpose:
      Utilities and related rights

      Area
      Affected: A portion of said premises

      Recorded:
      August 15, 2002

      Recording
      No.: 3454949

       
      10. Right
      to make necessary slopes for cuts or fills upon the land herein described
      as granted to City of Lacey, a municipal corporation by deed recorded
      under Recording No. 3462474.

        11. Easement
      and the terms and conditions thereof:

           Grantee:
      City of Lacey, a municipal corporation

           Purpose:
      Utilities and related rights

           Area
      Affected: A portion of said premises

           Recorded:
      December 2, 2002

           Recording
      No.: 3482260

       

	
      Deed
      From:
	
      Vicwood
      Meridian Partnership

       

	
      Deed
      Records

      Auditors
      File Nos.
	
       

      3538428
      and 3538426

WHATCOM COUNTY

 

	
      Section:
	
      30

       

	
      Township:
	
      38

       

	
      Range:
	
      3

       

	
      Description:
	
      Lot
      1, "ENSERCH/Georgia Pacific Short Plat Amended", according to the map
      thereof recorded Book 27, of Short Plats, Pages 29 & 30, records of
      Whatcom County and filed under Auditor's File No. 921027178

       

      Parcel
      One

       

      A
      portion of Lot 1, "ENSERCH/Georgia Pacific Short Plat Amended", according
      to the map thereof recorded Book 27, of Short Plats, Pages 29 & 30,
      records of Whatcom County and filed under Auditor's File No. 921027178,
      said portion of Lot 1 being more particularly described as
      follows:

       

      Commencing
      at a brass disk, set in concrete, at the intersection of the center lines
      of Cornwall Avenue and Vacated Laurel Street; thence along the center line
      of said Cornwall Avenue South 45°45'27" West, 295.02 feet; thence at right
      angles North 44°14'33" West, 40.00 feet to a point on the Northwest
      right-of-way line of said Cornwall Avenue, said point being the most
      Southerly corner point of Lot 2, and the most Easterly corner point of Lot
      1, of said "ENSERCH/Georgia Pacific Short Plat Amended", thence along said
      right-of-way line South 45°45'27" West, 27.99 feet; thence leaving said
      right-of-way line North 44°14'33" West, 28.50 feet; thence parallel with
      said Cornwall Avenue right-of-way line South 45°45'27" West, 15.50 feet;
      to the True Point of Beginning;

       

      thence
      continuing parallel with said Cornwall Avenue right-of-way line South
      45°45'27" West, 111.00 feet; thence North 44°14'33" West, 204.50 feet;
      thence North 45°45'27" East, 104.65 feet; thence South 89°14'33" East,
      30.90 feet; thence South 44°14'33" East, 157.65 feet; thence South
      12°26'37" East, 29.42 feet to the True Point of Beginning.

       

      All
      in the City of Bellingham, Whatcom County, Washington.

       

      Parcel
      Two

       

      A
      portion of Lot 1, "ENSERCH/Georgia Pacific Short Plat Amended", according
      to the map thereof recorded in Book 27, of Short Plats, Pages 29 & 30,
      of Whatcom County and filed under Auditor's File No. 921027178, said
      portion of Lot 1 being more particularly described as
      follows:

       

      Commencing
      at a brass disk, set in concrete, at the intersection of the center lines
      of Cornwall Avenue and Vacated Laurel Street; thence along the center line
      of said Cornwall Avenue South 45°45'27" West, 295.02 feet; thence at right
      angles North 44°14'33" West, 40.00 feet to a point on the Northwest
      right-of-way line of said Cornwall Avenue, said point being the most
      Southerly corner point of Lot 2, and the most Easterly corner point of Lot
      1, of said "ENSERCH/Georgia Pacific Short Plat Amended", thence along said
      right-of-way line South 45°45'27" West, 27.99 feet to the True Point of
      Beginning;

       

      thence
      continuing along said right-of-way line South 45°45'27" West, 126.50 feet;
      thence North 44°14'33" West 28.50 feet to the most Southerly corner of
      "Parcel One" (as described in Exhibit B-1 hereto); thence along the
      Southeast line of said Parcel One, North 45°45'27" East, 126.50 feet;
      thence South 44°14'33" East, 28.50 feet to said Cornwall Avenue Northwest
      right-of-way line to the True Point of Beginning.

       

      All
      in the City of Bellingham, Whatcom County, Washington.

       

      Parcel
      Three

       

      A
      portion of Lot 1, "ENSERCH/Georgia Pacific Short Plat Amended", according
      to the map thereof recorded in Book 27, of Short Plats, Pages 29 & 30,
      records of Whatcom County and filed under Auditor's File No. 921027178,
      said portion being more particularly described as follows:

       

      Commencing
      at a brass disk, set in concrete, at the intersection of the center lines
      of Cornwall Avenue and Vacated Laurel Street; thence along the center line
      of said Cornwall Avenue South 45°45'27" West, 295.02 feet; thence at right
      angles North 44°14'33" West, 40.00 feet to a point on the Northwest
      right-of-way line of said Cornwall Avenue, said point being the most
      Southerly corner point of Lot 2, and the most Easterly corner point of Lot
      1, of said "ENSERCH/Georgia Pacific Short Plat Amended", thence along said
      right-of-way line South 45°45'27" West, 27.99 feet; thence leaving said
      right-of-way line North 44°14'33" West, 18.50 feet to the True Point of
      Beginning;

       

      thence
      South 45°45'27" West, 126.50 feet parallel to the Southeast line of
      "Parcel One" (as described in Exhibit B-1 hereto); thence North
      44°14'33" West, 10.00 feet to the Southwest corner of said Parcel One;
      thence along the Southeast line of said Parcel One extended North
      45°45'27" East, 136.50 feet; thence South 44°14'33" East, 10.00 feet;
      thence South 45°45'27" West, 10.00 feet to the True Point of
      Beginning.

       

      All
      in the City of Bellingham, Whatcom County, Washington.

       

      Parcel
      Four

       

      A
      portion of Lot 1, "ENSERCH/Georgia Pacific Short Plat Amended", according
      to the map thereof recorded in Book 27, of Short Plats, Pages 29 & 30,
      records of Whatcom County and filed under Auditor's File No. 921027178,
      said portion being more particularly described as follows:

       

      Commencing
      at a brass disk, set in concrete, at the intersection of the center lines
      of Cornwall Avenue and Vacated Laurel Street; thence along the center line
      of said Cornwall Avenue South 45°45'27" West, 295.02 feet; thence at right
      angles North 44°14'33" West, 40.00 feet to a point on the Northwest
      right-of-way line of said Cornwall Avenue, said point being the most
      Southerly corner point of Lot 2, and the most Easterly corner point of Lot
      1, of said "ENSERCH/Georgia Pacific Short Plat Amended", thence along said
      right-of-way line South 45°45'27" West, 27.99 feet; thence leaving said
      right-of-way line North 44°14'33" West, 28.50 feet; thence parallel with
      the Northwest right-of-way line of said Cornwall Avenue South 45°45'27"
      West, 126.50 feet to the most Southerly corner point of "Parcel One" (as
      described in Exhibit B-1 hereto); and the True Point of
      Beginning;

       

      thence
      South 44°14'33" East, 5.00 feet; thence South 45°45'27 West, 5.00 feet;
      thence parallel with the Southwest line of said Parcel One, North
      44°14'33" West, 214.50 feet; thence parallel with the Northwest line of
      said Parcel One, North 45°45'27" East, 101.50 feet; thence at right
      angles, South 44°14'33" East, 5 feet; to a point on the Northwest line of
      said Parcel One; thence along said Northwest line South 45°45'27" West,
      96.50 feet to the Northwest corner point of said Parcel One; thence along
      the Southwest line of said Parcel One South 44°14'33" East, 204.50 feet to
      the Southwest corner of said Parcel One and the True Point of
      Beginning.

       

      All
      in the City of Bellingham, Whatcom County, Washington.

       

      Parcel
      Five

       

      A
      portion of Lot 1, "ENSERCH/Georgia Pacific Short Plat Amended", according
      to the map thereof recorded in Book 27, of Short Plats, Pages 29 & 30,
      records of Whatcom County and filed under Auditor's File No. 921027178,
      said portion being more particularly described as follows:

       

      Commencing
      at a brass disk, set in concrete, at the intersection of the center lines
      of Cornwall Avenue and Vacated Laurel Street; thence along the center line
      of said Cornwall Avenue South 45°45'27" West, 295.02 feet; thence at right
      angles North 44°14'33" West, 40.00 feet to a point on the Northwest
      right-of-way line of said Cornwall Avenue, said point being the most
      Southerly corner of Lot 2, and the most Easterly corner of Lot 1, of said
      "ENSERCH/Georgia Pacific Short Plat Amended", and the True Point of
      Beginning;

       

      thence
      along the Southwesterly line of said Lot 2, North 44°16'53" West, 84.39
      feet to an interior corner point between said Lots 1 and 2; thence
      extending North 44°16'53" West, 179.61 feet; thence South 45°45'27" West,
      57.81 feet; thence South 44°14'33" East, 31.00 feet to the Northwest line
      of "Parcel One" (as described in Exhibit B-1 hereto); thence along
      said Northwest line North 45°45'27" East, 8.15 feet; thence South
      89°14'33" East, 30.90 feet; thence along the Northeast line of said Parcel
      One South 44°14'33" East, 157.65 feet; thence South 12°26'37" East, 29.42
      feet to a point on the Southeast line of said Parcel One; thence parallel
      to the Northwest right-of-way line of said Cornwall Avenue North 45°45'27"
      East, 15.50 feet; thence South 44°14'33" East, 28.50 feet to the Northwest
      right-of-way line of said Cornwall Avenue; thence along said right-of-way
      line North 45°45'27" East, 27.99 feet; to the True Point of
      Beginning.

       

      All
      in the City of Bellingham, Whatcom County, Washington.

       

      Parcel
      Six

       

      A
      portion of Lot 1, "ENSERCH/Georgia Pacific Short Plat Amended", according
      to the map thereof recorded in Book 27, of Short Plats, Pages 29 & 30,
      records of Whatcom County and filed under Auditor's File No. 921027178,
      said portion being more particularly described as follows:

       

      Commencing
      at a brass disk, set in concrete, at the intersection of the center lines
      of Cornwall Avenue and Vacated Laurel Street; thence along the center line
      of said Cornwall Avenue South 45°45'27" West, 295.02 feet; thence at right
      angles North 44°14'33" West, 40.00 feet to a point on the Northwest
      right-of-way line of said Cornwall Avenue, said point being the most
      Southerly corner point of Lot 2, and the most Easterly corner point of Lot
      1, of said "ENSERCH/Georgia Pacific Short Plat Amended", thence along said
      right-of-way line South 45°45'27" West, 27.99 feet to the True Point of
      Beginning;

       

      thence
      leaving said right-of-way line North 44°14'33" West, 53.50 feet to a point
      on the Northeast line of "Parcel One" (as described in Exhibit B-1
      hereto); thence continuing along said Northeast line North 44°14'33" West,
      157.65 feet; thence North 89°14'33" West, 30.90 feet to a point on the
      Northwest line of said Parcel One; thence along said Northwest line South
      45°45'27" West, 8.15 feet; thence North 44°14'33" West, 5.00 feet; thence
      North 45°45'27" East, 40.00 feet; thence parallel with the Northeast line
      of said Parcel One extended South 44°14'33" East, 238.00 feet to a point
      on the Northwest right-of-way line of said Cornwall Avenue; thence along
      said right-of-way line South 45°45'27" West, 10.00 feet to the True point
      of beginning.

       

      All
      in the City of Bellingham, Whatcom County, Washington.

       

      Parcel
      Seven

       

      That
      portion of Lot 1, "ENSERCH/Georgia Pacific Short Plat Amended", according
      to the map thereof recorded Book 27, of Short Plats, Pages 29 & 30,
      records of Whatcom County and filed under Auditor's File No. 921027178,
      EXCEPT that portion of Lot 1 being more particularly described as
      follows:

       

      Commencing
      at a brass disk, set in concrete, at the intersection of the center lines
      of Cornwall Avenue and Vacated Laurel Street; thence along the center line
      of said Cornwall Avenue South 45°45'27" West, 295.02 feet; thence at right
      angles North 44°14'33" West, 40.00 feet to a point on the Northwest
      right-of-way line of said Cornwall Avenue, said point being the most
      Southerly corner point of Lot 2, and the most Easterly corner point of Lot
      1, of said "ENSERCH/Georgia Pacific Short Plat Amended", thence along said
      right-of-way line South 45°45'27" West, 27.99 feet; thence leaving said
      right-of-way line North 44°14'33" West, 28.50 feet; thence parallel with
      said Cornwall Avenue right-of-way line South 45°45'27" West, 15.50 feet;
      to the True Point of Beginning;

       

      thence
      continuing parallel with said Cornwall Avenue right-of-way line South
      45°45'27" West, 111.00 feet; thence North 44°14'33" West, 204.50 feet;
      thence North 45°45'27" East, 104.65 feet; thence South 89°14'33" East,
      30.90 feet; thence South 44°14'33" East, 157.65 feet; thence South
      12°26'37" East, 29.42 feet to the True Point of Beginning.

       

      All
      in the City of Bellingham, Whatcom County, Washington.

       

	
      Deed
      From:
	
      Encogen

       

	
      Deed
      Records

      Auditors
      File No.
	
       

      N/A
      (Whatcom County Superior Court Cause No. 93-2-01358-9);
      condemnation

WHATCOM COUNTY

 

	
      Section:
	
      20

       

	
      Township:
	
      40

       

	
      Range:
	
      3

       

	
      Description:
	
      That
      portion of the "ALLEY" situated in the South 1⁄2 of the Northeast 1⁄4 of
      Section 20, Township 40 North, Range 3 East of W.M., described as
      follows:

       

      Beginning
      on the westerly line of Lot 1, Block 1, "Hawley and Lawlence's Addition to
      Lynden, "Whatcom County" WA, as per the map thereof, recorded in Book 1 of
      Plats, Page 46, in the Auditor's Office of said County and State, at a
      point where the north line of the alley intersects said westerly line of
      said Lot 1; thence southwesterly along the said westerly line of said Lot
      1 to the intersection of the southerly line of said alley with the
      westerly line of said Lot 1; thence westerly along the southerly line of
      said alley to the northwesterly corner of a tract of land conveyed to
      Puget Sound Energy, Inc. (formerly known as Puget Sound Power & Light
      Company) by Deed recorded under Whatcom County Recording No. 1529480;
      thence northerly at right angles to Front Street to the north line of said
      alley; thence easterly to the point of beginning.

       

      (Commonly
      described as the portion of the alley north of the address 127 Front
      Street, Lynden, Washington)

       

	
      Deed
      From:
	
      Nellie
      Bouma

       

	
      Deed
      Records

      Auditors
      File No.
	
       

      2000802458

 

ARTICLE
ONE

 

MISCELLANEOUS

 

SECTION
1.01

 

This
Eightieth Supplemental Indenture is executed and shall be construed as an
indenture supplemental to the Indenture, and shall form a part thereof, and the
Indenture, as hereby supplemented and modified, is hereby confirmed. Except to
the extent inconsistent with the express terms hereof, all the provisions,
terms, covenants, and conditions of the Indenture shall be applicable to the
Bonds of the New Series to the same extent as if specifically set forth
herein.

 

SECTION
1.02

 

The
Trustee has accepted the amendment of the Indenture effected by this Eightieth
Supplemental Indenture and agrees to execute the trust created by the Indenture
as hereby amended, but only upon the terms and conditions set forth in the
Indenture, including the terms and provisions defining and limiting the
liabilities and responsibilities of the Trustee, and without limiting the
generality of the foregoing, the Trustee shall not be responsible in any manner
whatsoever for or with respect of any of the recitals or statements contained
herein, all of which recitals or statements are made solely by the Company, or
for or with respect to (a) the validity or sufficiency of this Eightieth
Supplemental Indenture or any of the terms or provisions hereof, (b) the
proper authorization hereof by the Company by corporate action or otherwise, and
(c) the due execution hereof by the Company.

 

SECTION
1.03

 

The
Company covenants that it is lawfully seized and possessed of all the trust
estate at the date of the execution of the Eightieth Supplemental Indenture
except as in the Indenture otherwise stated or permitted; that on said date the
trust estate is free and clear from all liens and encumbrances other than
permitted encumbrances, except as in the Indenture otherwise stated or
permitted; that the Company will warrant and forever defend the trust estate and
the title thereto to the Trustee against the claims of all persons whomsoever
except as in the Indenture otherwise stated or permitted; that it will maintain
and preserve the lien of the Indenture, as a first mortgage lien, except as in
the Indenture otherwise stated or permitted so long as any of the Bonds issued
under the Indenture are outstanding; and that it has good right and lawful
authority to subject said property to the lien of the Indenture, as provided in
and by the Indenture.

 

SECTION
1.04

 

This
Eightieth Supplemental Indenture may be executed in several counterparts, and
each of such counterparts shall for all purposes be deemed to be an original,
and all such counterparts, or as many of them as the Company and the Trustee
shall preserve undestroyed, shall together constitute but one and the same
instrument.

 

SECTION
1.05

 

Although
this Eightieth Supplemental Indenture is dated for convenience and for the
purpose of reference as of April 30, 2004, the actual date or dates of
execution by the Company and by the Trustee are as indicated by their respective
acknowledgments hereto annexed.

 

 

 

 

 

[The
remainder of this page intentionally left blank]

 

IN
WITNESS WHEREOF, Puget Sound Energy, Inc. has caused this Eightieth Supplemental
Indenture to be signed in its corporate name and behalf by its President or one
of its Vice Presidents or its Treasurer or Assistant Treasurer and its corporate
seal to be hereunto affixed and attested by its Secretary or one of its
Assistant Secretaries, all on April 30, 2004, but as of the day and year
first above written.

 

	 	 	
       

      PUGET
      SOUND ENERGY, INC.

	 	 	
       

      By: 
      /s/
      James W. Eldredge

	 	 	
      James
      W. Eldredge

      Vice
      President Corporate Secretary, 

      Controller,
      and Chief Accounting Officer

	 	 	 
	
       

      Attest:
	 	 
	
       

      /s/
      Michael J. Stranik

      
      Michael
      J. Stranik

      Assistant
      Corporate Secretary

      and
      Assistant Controller

	 

 

 

 

 

 

 

 

 

	 STATE OF
      WASHINGTON       	 )
	 	 )ss:
	 COUNTY OF KING    	 )

 

On this
30th day of April, 2004, before me, a Notary
Public in and for the State of Washington, duly commissioned and sworn,
personally appeared James W. Eldredge, to me known to be the Vice President
Corporate Secretary, Controller, and Chief Accounting Officer of Puget Sound
Energy, Inc., a Washington corporation, the corporation named in and which
executed the foregoing instrument; and they acknowledged to me that they signed
the same as the free and voluntary act and deed of said corporation for the uses
and purposes therein mentioned, being authorized so to do.

 

WITNESS
my hand and official seal the day and year in this certificate above
written.

 

	 	/s/
      Carol A. Nelson
	 	Notary
      Name: Carol A. Nelson
	 	Notary
      Public in and for the State of
      Washington,
      residing at Redmond, Washington

	 	My
      Commission expires 7-20-05

 

 

 

 

	STATE OF
      WASHINGTON       	 )
	 	 )ss:
	 COUNTY OF KING    	 )

 

On this
30th day of April, 2004, before me, a Notary
Public in and for the State of Washington, duly commissioned and sworn,
personally appeared Michael J. Stanik, to me known to be the Assistant Corporate
Secretary and Assistant Controller of Puget Sound Energy, Inc., a Washington
corporation, the corporation named in and which executed the foregoing
instrument; and they acknowledged to me that they signed the same as the free
and voluntary act and deed of said corporation for the uses and purposes therein
mentioned, being authorized so to do.

 

WITNESS
my hand and official seal the day and year in this certificate above
written.

 

		/s/
      Carol A. Nelson
	 	Notary
      Name: Carol A. Nelson
	 	Notary
      Public in and for the State of
      Washington,
      residing at Redmond, Washington

	 	My
      Commission expires
7-20-05Change of Control-Markell

 

Exhibit
10.52

 

CHANGE
OF CONTROL AGREEMENT

 

AGREEMENT
by and between Puget Sound Energy, Inc., a Washington corporation (the
"Company"), and ERIC
M. MARKELL (the
"Executive"), dated as of the 7th day of May 2003.

The Board
of Directors of the Company (the "Board") has determined that it is in the best
interests of the Company and its shareholders to ensure that the Company will
have the continued dedication of the Executive, notwithstanding the possibility,
threat or occurrence of a Change of Control (as defined in Section 2) of
the Company. The Board believes that it is imperative to diminish the inevitable
distraction of the Executive by virtue of the personal uncertainties and risks
created by a pending or threatened Change of Control and to encourage the
Executive's full attention and dedication to the Company currently and in the
event of any threatened or pending Change of Control, and to provide the
Executive with compensation and benefits arrangements upon a Change of Control
which ensure that the compensation and benefits expectations of the Executive
will be satisfied, which are competitive with those of other corporations and
which align the Executive's interests with those of the Company's shareholders.
Therefore, in order to accomplish these objectives, the Board has caused the
Company to enter into this Agreement.

NOW,
THEREFORE, IT IS HEREBY AGREED AS FOLLOWS:

 

	
      1.
	
      Certain
      Definitions

(a) "Accrued
Obligations" is defined in Section 6(a)(i).

(b) "Affiliated
Company" means any company controlled by, controlling or under common control
with the Company.

(c) "Annual
Base Salary" means an annual base salary at least equal to 12 times the highest
monthly base salary paid or payable to the Executive by the Company and its
affiliated companies in respect to the 12-month period immediately preceding the
month in which the Effective Date occurs.

(d) "Annual
Bonus" is defined in Section 4(b)(ii).

(e) "Business
Combination" means (i) a reorganization, exchange of securities, merger or
consolidation of the Company or (ii) the sale or other disposition of all or
substantially all the assets of the Company.

(f) "Change
of Control" is defined in Section 2.

(g) The
"Change of Control Period" means the period commencing on the date hereof and
ending on the third anniversary of the date hereof; provided, however, that
commencing on the first anniversary of the date hereof and on each successive
anniversary (each a “Renewal Date”), the Change of Control Period shall be
automatically extended so as to terminate three years from such Renewal Date,
unless at least 60 days prior to the Renewal Date the Company gives notice to
the Executive that the Change of Control Period shall not be so
extended.

(h) "Code"
means the Internal Revenue Code of 1986, as amended.

(i) "Date of
Termination" is defined in Section 5(f).

(j) "Disability"
is defined in Section 5(a).

(k) "Disability
Effective Date" is defined in Section 5(a).

(l) "Effective
Date" means the first date during the Change of Control Period on which a Change
of Control occurs. Anything in this Agreement to the contrary notwithstanding,
if a Change of Control occurs and if the Executive's employment with the Company
is terminated prior to the date on which the Change of Control occurs, and if it
is reasonably demonstrated by the Executive that such termination of employment
(i) was at the request of a third party who has taken steps reasonably
calculated to effect the Change of Control or (ii) otherwise arose in
connection with or anticipation of the Change of Control, then for all purposes
of this Agreement the "Effective Date" shall mean the date immediately prior to
the date of such termination of employment.

(m) "Employment
Period" is defined in Section 3.

(n) "Exchange
Act" means the Securities Exchange Act of 1934, as amended.

(o) "Good
Reason" is defined in Section 5(d).

 

(p) "Incentive
Plan" means the Company's 1995 Long-Term Incentive Compensation Plan or any
successor plan.

(q) "Incumbent
Director" means a member of the Board who has been either (i) nominated by
a majority of the directors of the Company then in office or (ii) appointed
by directors so nominated, but excluding, for this purpose, any such individual
whose initial assumption of office occurs as a result of either an actual or
threatened election contest (as such terms are used in Rule 14a-11 of
Regulation 14A promulgated under the Exchange Act) or other actual or
threatened solicitation of proxies or consents by or on behalf of a Person other
than the Board.

(r) "Notice
of Termination" is defined in Section 5(e).

(s) "Other
Benefits" is defined in Section 6(a)(iv).

(t) "Outstanding
Company Common Stock" means the shares of Common Stock of the Company ("Common
Stock") outstanding at the time of the determination.

(u) "Outstanding
Company Voting Securities" means the combined voting power of the outstanding
voting securities of the Company entitled to vote generally in the election of
directors at the time of the determination.

(v) "Person"
means any individual, entity or group (within the meaning of Section 13(d)(3) or
14(d) of the Exchange Act).

(w) "Retirement
Plan" means the Company's qualified pension plan or any successor plan
thereto.

(x) "SERP"
means the Company's Supplemental Executive Retirement Plan or any other
supplemental and/or excess retirement plan or agreement of the Company and its
affiliated companies providing benefits for the Executive.

(y) "Welfare
Benefit Continuation" is defined in Section 6(a)(ii).

 

	
      2.
	
      Change
      of Control

For the
purpose of this Agreement, a "Change of Control" means:

(a) The
acquisition by any Person of beneficial ownership (within the meaning of
Rule 13d-3 promulgated under the Exchange Act) of (i) 20% or more of
either (A) the Outstanding Company Common Stock or (B) the Outstanding
Company Voting Securities; provided, however, that the following acquisitions of
beneficial ownership shall not constitute a Change of Control: (x) any
acquisition by the Company, (y) any acquisition by any employee benefit
plan (or related trust) sponsored or maintained by the Company or any
corporation controlled by the Company, or (z) any acquisition by any
corporation pursuant to a Business Combination, if, following such Business
Combination, the conditions described in clauses (i), (ii) and (iii) of
subsection (c) of this Section 2 are satisfied; or

(b) A "Board
Change" which, for purposes of this Agreement, shall have occurred if a majority
of the seats (other than vacant seats) on the Board are occupied by individuals
who were neither (i) nominated by a majority of the Incumbent Directors nor
(ii) appointed by directors so nominated; or

(c) Approval
by applicable regulatory agencies of a Business Combination unless immediately
following such Business Combination, (i) more than 60% of the then
outstanding shares of common stock of the corporation resulting from or
effecting such Business Combination and the combined voting power of the then
outstanding voting securities of such corporation entitled to vote generally in
the election of directors is then beneficially owned, directly or indirectly, by
all or substantially all the individuals and entities who were the beneficial
owners of the Outstanding Company Common Stock and Outstanding Company Voting
Securities, respectively, immediately prior to such Business Combination in
substantially the same proportion as their ownership, immediately prior to such
Business Combination, of the Outstanding Company Common Stock and Outstanding
Company Voting Securities, as the case may be, (ii) no Person (excluding
the Company, any employee benefit plan (or related trust) of the Company or the
corporation resulting from or effecting such Business Combination and any Person
beneficially owning, immediately prior to such Business Combination, directly or
indirectly, 20% or more of the Outstanding Company Common Stock or Outstanding
Company Voting Securities, as the case may be) beneficially owns, directly or
indirectly, 20% or more of, respectively, the then outstanding shares of common
stock of the corporation resulting from or effecting such Business Combination
or the combined voting power of the then outstanding voting securities of such
corporation entitled to vote generally in the election of directors, and
(iii) at least a majority of the members of the board of directors of the
corporation resulting from or effecting such Business Combination were Incumbent
Directors at the time of the execution of the initial agreement or action of the
Board providing for such Business Combination.

 

	
      3.
	
      Employment
      Period

The
Company hereby agrees to continue the Executive in its employ, and the Executive
hereby agrees to remain in the employ of the Company, in accordance with the
terms and provisions of this Agreement, for the period commencing on the
Effective Date and ending on the second anniversary of such date (the
"Employment Period"), in the executive capacity of Senior Vice President Energy
Resources and Planning, or a substantially comparable position of the Company,
responsible for, among other things, determining near term and long term energy
resource needs and acquiring resources to meet those needs; planning,
organizing, directing and controlling the long term operations, maintenance,
protection and improvement of power production facilities and acquisition,
storage and transportation of natural gas supply; supply contract evaluation,
negotiation and performance monitoring; and, subject to the general supervision
of the Board as required by the Washington Business Corporation Act, such other
duties and responsibilities as are not inconsistent with the express terms of
this Agreement. The Company agrees that it will not take any action, or make any
demands on the Executive, that may be deemed to arbitrarily, unreasonably or
unnecessarily interfere with the performance of the services to be rendered by
the Executive hereunder.

 

	
      4.
	
      Terms
      of Employment

(a) Position
and Duties.

 

(i) During
the Employment Period, (A) the Executive's position (including status,
offices, titles and reporting requirements), authority, duties and
responsibilities shall be in accordance with Section 3 and (B) the
Executive's services shall be performed within the Seattle/Bellevue metropolitan
area, except for required travel in the Company's business to the extent
consistent with the Executive's duties in Section 3.

 

(ii) During
the Employment Period, and excluding any periods of paid time off to which the
Executive is entitled, the Executive agrees to devote reasonable attention and
time during normal business hours to the business and affairs of the Company
and, to the extent necessary to discharge the responsibilities assigned to the
Executive hereunder, to use the Executive's reasonable best efforts to perform
faithfully and efficiently such responsibilities. During the Employment Period
it shall not be a violation of this Agreement for the Executive to
(A) serve on corporate, civic or charitable boards or committees,
(B) deliver lectures, fulfill speaking engagements or teach at educational
institutions, or (C) manage personal investments, so long as such
activities do not significantly interfere with the performance of the
Executive's responsibilities as an employee of the Company in accordance with
this Agreement. It is expressly understood and agreed that to the extent that
any such activities have been conducted by the Executive prior to the Effective
Date, the continued conduct of such activities (or the conduct of activities
similar in nature and scope thereto) subsequent to the Effective Date shall not
thereafter be deemed to interfere with the performance of the Executive's
responsibilities to the Company.

(b) Compensation.

 

(i) Base
Salary. During
the Employment Period, the Executive shall receive an annual base salary
("Annual Base Salary"), which shall be paid in equal installments on a monthly
basis, at least equal to 12 times the highest monthly base salary paid or
payable to the Executive by the Company and its affiliated companies in respect
of the 12-month period immediately preceding the month in which the Effective
Date occurs. For purposes of this Agreement, Annual Base Salary shall not
include any payments by the Company on the Executive's behalf pursuant to any
incentive, savings or retirement plans, any welfare benefit plans or any fringe
benefit plans, in each case, of the Company or any affiliated company, of the
type identified in paragraphs (iii) through (vii) of this Section 4(b), or
any reimbursement of expenses by the Company or any affiliated company in
accordance with paragraph (v) of this Section 4(b). During the
Employment Period, the Annual Base Salary shall be reviewed at least annually
and shall be increased at any time and from time to time as shall be
substantially consistent with increases in base salary generally awarded in the
ordinary course of business to other peer executives of the Company and its
affiliated companies. Any increase in Annual Base Salary shall not serve to
limit or reduce any other obligation to the Executive under this Agreement.
Annual Base Salary shall not be reduced after any such increase, and the term
Annual Base Salary as utilized in this Agreement shall refer to Annual Base
Salary as so increased.

 

(ii) Annual
Bonus. In
addition to Annual Base
Salary, the Executive shall be eligible to receive, for each fiscal year ending
during the Employment Period, a target annual bonus (the “Annual Bonus”) in cash
at least equal to the greater of (A) the Executive’s target annual bonus in
effect on the Effective Date and (B) the average (annualized for any fiscal year
in which the Executive has been employed by the Company for less than 12 full
months) target bonus for which the Executive was eligible in the three fiscal
years immediately preceding the fiscal year in which the Effective Date occurs.
Each such Annual Bonus earned shall be paid no later than the end of the third
month of the fiscal year next following the fiscal year for which the Annual
Bonus is earned unless the Executive shall elect to defer the receipt of such
Annual Bonus. 

 

(iii) Incentive,
Savings and Retirement Plans.

 

(A) During
the Employment Period, the Executive shall be entitled to participate in all
incentive, savings and retirement plans, practices, policies and programs
applicable generally to other peer executives of the Company and its affiliated
companies (including, without limitation, the plans in effect on the date of
this Agreement or any successor plans), but in no event shall such plans,
practices, policies and programs provide the Executive with incentive
opportunities (measured with respect to both regular and special incentive
opportunities, to the extent, if any, that such distinction is applicable),
savings opportunities and retirement benefit opportunities, in each case, that
are less favorable, in the aggregate, than the most favorable of those provided
by the Company and its affiliated companies for the Executive under such plans,
practices, policies and programs as in effect at any time during the 90-day
period immediately preceding the Effective Date or, if more favorable to the
Executive, those provided generally at any time after the Effective Date to
other executives of the Company and its affiliated companies. 

 

(B) Upon the
Effective Date the Executive shall become vested under the Company's
Supplemental Executive Retirement Plan ("SERP") so that the Executive shall be
entitled to receive a Retirement Benefit (as defined in the SERP) at age 62 or,
at the election of the Executive, at any age between 55 and 62 a Retirement
Benefit reduced one-third percent (1/3%) for each month that benefits commence
prior to the beginning of the month coincident with or next following the date
the Executive would attain age 62.

 

(iv) Equity
Incentive Plans.

 

(A) Any
outstanding stock options or stock appreciation rights issued to the Executive
under the Company's existing plans or any successor plan shall become fully
vested and exercisable on the Effective Date. All restrictions on shares of
restricted stock issued to the Executive shall lapse.

 

(B) with
respect to all performance awards granted to the Executive pursuant to the
Incentive Plan or any successor plan that are outstanding immediately prior to
the Effective Date, the Company shall issue to the Executive within 30 days
after the Effective Date:

 

    (i) if the
Change of Control is not being accounted for as a pooling of interests, cash
equal to the higher of (1) the average of the last sale prices of the
Company's (or its successor's) Common Stock on the New York Stock Exchange in
each of the twenty business days preceding the Effective Date or (2) the
highest price per share actually paid for any of the Company Common Stock in
connection with the Change in Control, multiplied by an aggregate number of
shares of the Company's Common Stock (or, if the event that triggered the
Effective Date is a Business Combination, the equivalent number of shares of the
then outstanding common stock of the corporation resulting from or effecting
such Business Combination into which such shares of Common Stock have been
converted) equal to the greater of (x) the total number of the shares payable at
the target award level upon full vesting of each such performance award and (y)
such higher number of shares payable upon full vesting of each such award if the
Company achieved for each four-year award cycle the percentile ranking against
the comparable universe of EEI companies which the Company had achieved for the
applicable cycle during the period commencing upon the starting year of such
cycle and ending with the fiscal quarter immediately preceding the Effective
Date; or

 

    (ii) if the
Change of Control is being accounted for as a pooling of interests, an aggregate
number of shares of the Company's Common Stock (or, if the event that triggered
the Effective Date is a Business Combination, the equivalent number of shares of
the then outstanding common stock of the corporation resulting from or effecting
such Business Combination into which such shares of Common Stock have been
converted) equal to the greater of (x) the total number of the shares payable at
the target award level upon full vesting of each such performance award and (y)
such higher number of shares payable upon full vesting of each such award if the
Company achieved for each four-year award cycle the percentile ranking against
the comparable universe of EEI companies which the Company had achieved for the
applicable cycle during the period commencing upon the starting year of such
cycle and ending with the fiscal quarter immediately preceding the Effective
Date; and

 

    (iii) cash
equal to the amount of the dividend equivalents associated with the number of
shares determined under subparagraph (i) or (ii) above, in accordance with the
Incentive Plan.

 

(v) Welfare
Benefit Plans. During
the Employment Period, the Executive and/or the Executive's family, as the case
may be, shall be eligible for participation in and shall receive all benefits
under welfare benefit plans, practices, policies and programs provided by the
Company and its affiliated companies (including, without limitation, medical,
dental, disability, salary continuance, life, group life, accidental death and
travel accident insurance plans and programs) to the extent applicable generally
to other peer executives of the Company and its affiliated companies, but in no
event shall such plans, practices, policies and programs provide the Executive
with benefits that are less favorable, in the aggregate, than the most favorable
of such plans, practices, policies and programs in effect for the Executive at
any time during the 90-day period immediately preceding the Effective Date or,
if more favorable to the Executive, those provided generally at any time after
the Effective Date to other peer executives of the Company and its affiliated
companies.

 

(vi) Expenses. During
the Employment Period, the Executive shall be entitled to receive prompt
reimbursement for all reasonable business expenses incurred by the Executive in
accordance with the most favorable policies, practices and procedures of the
Company and its affiliated companies in effect for the Executive at any time
during the 90-day period immediately preceding the Effective Date or, if more
favorable to the Executive, as in effect generally at any time thereafter with
respect to other peer executives of the Company and its affiliated
companies.

 

(vii) Fringe
Benefits. During
the Employment Period, the Executive shall be entitled to fringe benefits in
accordance with the most favorable plans, practices, programs and policies of
the Company and its affiliated companies in effect for the Executive at any time
during the 90-day period immediately preceding the Effective Date or, if more
favorable to the Executive, as in effect generally at any time thereafter with
respect to other peer executives of the Company and its affiliated
companies.

 

(viii) Office
and Support Staff. During
the Employment Period, the Executive shall be entitled to an office or offices
of a size and with furnishings and other appointments, and to personal
secretarial and other assistance, at least equal to the most favorable of the
foregoing provided to the Executive by the Company and its affiliated companies
at any time during the 90-day period immediately preceding the Effective Date
or, if more favorable to the Executive, as provided generally at any time
thereafter with respect to other peer executives of the Company and its
affiliated companies.

 

     
(ix) Vacation. During
the Employment Period, the Executive shall be entitled to paid vacation in
accordance with the most favorable plans, policies, programs and practices of
the Company and its affiliated companies as in effect for the Executive at any
time during the 90-day period immediately preceding the Effective Date or, if
more favorable to the Executive, as in effect generally at any time thereafter
with respect to other peer executives of the Company and its affiliated
companies.

 

	
      5.
	
      Termination
      of Employment

(a) Death
or Disability. The
Executive's employment shall terminate automatically upon the Executive's death
during the Employment Period. If the Company determines in good faith that the
Disability of the Executive has occurred during the Employment Period (pursuant
to the definition of Disability set forth below), it may give to the Executive
written notice in accordance with Section 12(b) of its intention to
terminate the Executive's employment. In such event, the Executive's employment
with the Company shall terminate effective on the 30th day
after receipt of such notice by the Executive (the "Disability Effective Date"),
provided that, within the 30 days after such receipt, the Executive shall not
have returned to full-time performance of the Executive's duties. For purposes
of this Agreement, "Disability" shall mean the absence of the Executive from the
Executive's duties with the Company on a full-time basis for 120 consecutive
business days as a result of incapacity due to mental or physical illness which
is determined to be total and permanent by a physician selected by the Company
or its insurers and acceptable to the Executive or the Executive's legal
representative (such agreement as to acceptability not to be unreasonably
withheld).

(b) Cause. The
Company may terminate the Executive's employment during the Employment Period
for Cause. For purposes of this Agreement, "Cause" shall mean (i) the
willful and continued failure by Employee to substantially perform his duties
with the Company (other than any such failure resulting from incapacity due to
physical or mental illness), for a period of 30 days after written notice of
demand for substantial performance has been delivered to Employee by the Board
of Directors which specifically identifies the manner in which the Board
believes that Employee has not substantially performed his duties, or
(ii) the willful engaging by Employee in gross misconduct materially and
demonstrably injurious to the Company, as determined by the Board of Directors
after notice to Employee and an opportunity for a hearing. No act, nor failure
to act, on Employee's part shall be considered "willful" unless he has acted or
failed to act with an absence of good faith and without a reasonable belief that
his action or failure to act was in the best interests of the
Company.

(c) Without
Cause. The
Company may terminate the Executive's employment at any time during the
Employment Period without Cause.

      (d) Good
Reason. The
Executive's employment may be terminated during the Employment Period by the
Executive for Good Reason. For purposes of this Agreement, "Good Reason" shall
mean

 

     (i) the
assignment to the Executive of any duties inconsistent with the Executive's
position (including status, offices, titles and reporting requirements),
authority, duties or responsibility as contemplated by Sections 3 and 4(a)
or any other action by the Company which results in a diminution in such
position, authority, duties or responsibilities, excluding for this purpose an
isolated, insubstantial and inadvertent action not taken in bad faith and which
is remedied by the Company promptly after receipt of notice thereof given by the
Executive;

 

    (ii) any
failure by the Company to comply with any of the provisions of Section 4(b),
other than an isolated, insubstantial and inadvertent failure not taken in bad
faith and which is remedied by the Company promptly after receipt of notice
thereof given by the Executive;

 

    (iii) the
Company's requiring to be based at any location other than that described in
Section 4(a)(i)(B);

 

    (iv) any
purported termination by the Company of the Executive's employment otherwise
than as expressly permitted by this Agreement; or

 

    (v) any
failure by the Company to comply with and satisfy Section 11(c), provided
that such successor has received at least ten days' prior written notice from
the Company or the Executive of the requirements of
Section 11(c).

For
purposes of this Section 5(c), any good faith determination of Good Reason
made by the Executive shall be conclusive.

 

(e) Notice
of Termination. Any
termination by the Company for Cause or without Cause or by the Employee for
Good Reason shall be communicated by Notice of Termination to the other party
hereto given in accordance with Section 12(b). For purposes of this
Agreement, a "Notice of Termination" means a written notice which
(i) indicates the specific termination provision in this Agreement relied
upon, (ii) to the extent applicable, sets forth in reasonable detail the
facts and circumstances claimed to provide a basis for termination of the
Executive's employment under the provision so indicated and (iii) if the
Date of Termination (as defined below) is other than the date of receipt of such
notice, specifies the termination date (which date shall be not more than
15 days after the giving of such notice). The failure by the Executive or
the Company to set forth in the Notice of Termination any fact or circumstance
which contributes to a showing of Good Reason or Cause shall not waive any right
of the Executive or the Company hereunder or preclude the Executive or the
Company from asserting such fact or circumstance in enforcing the Executive's or
the Company's rights hereunder.

(f) Date
of Termination. "Date
of Termination" means (i) if the Executive's employment is terminated by
the Company, whether for Cause or without Cause, or by the Executive for Good
Reason, the date of receipt of the Notice of Termination or any later date
specified therein, as the case may be, and (ii) if the Executive's
employment is terminated by reason of death or Disability, the Date of
Termination shall be the date of death of the Executive or the Disability
Effective Date, as the case may be.

 

	
      6.
	
      Obligations
      of the Company Upon Termination

 

(a) Good
Reason; Without Cause; Death or Disability. If,
during the Employment Period, the Company shall terminate the Executive's
employment without Cause or for Death or Disability or the Executive shall
terminate employment for Good Reason:

(i) the
Company shall pay to the Executive in a lump sum in cash within 30 days
after the Date of Termination the aggregate of the following
amounts:

 

(A) the sum
of (1) the Executive's Annual Base Salary through the Date of Termination,
(2) a pro rata portion of the Executive’s Annual Bonus for the year in which the
Date of Termination occurs, based on the number of days of employment that year
up to the Date of Termination divided by 365 days,) and (3) any accrued paid
time off pay, in each case to the extent not theretofore paid (the sum of the
amounts described in clauses (1), (2) and (3) shall be hereinafter referred
to as the "Accrued Obligations"); and

 

(B) the
amount equal to the sum of (x) Annual Base Salary and (y) the Annual Bonus for
which the Executive was eligible for the year in which the Date of Termination
occurs; and

 

(C) if
Executive executes a release of in the form set forth in Exhibit I attached
hereto, and said release of claims becomes effective by its terms, the
additional amount equal to two times the sum of (x) Annual Base Salary and (y)
the Annual Bonus for which the Executive was eligible for the year in which the
Date of Termination occurs; and

 

(D) a
separate lump-sum supplemental retirement benefit equal to the difference
between (1) the actuarial equivalent (utilizing for this purpose the
actuarial assumptions utilized with respect to the Retirement Plan during the
90-day period immediately preceding the Effective Date) of the benefit payable
under the Retirement Plan and any SERP providing benefits for the Executive that
the Executive would receive if the Executive's employment continued at the
compensation level provided for in Sections 4(b)(i) and (ii) for the
remainder of the Employment Period, assuming for this purpose that all accrued
normal and early retirement benefits are fully vested and that benefit accrual
formulas are no less advantageous to the Executive than those in effect during
the 90-day period immediately preceding the Effective Date, and (2) the
actuarial equivalent (utilizing for this purpose the actuarial assumptions
utilized with respect to the Retirement Plan during the 90-day period
immediately preceding the Effective Date) of the Executive's actual benefit
(paid or payable), if any, under the Retirement Plan and the SERP;
and

 

(ii) for the
remainder of the Employment Period, or such longer period as any plan, program,
practice or policy may provide, the Company shall continue benefits to the
Executive and/or the Executive's family at least equal to those that would have
been provided to them in accordance with the plans, programs, practices and
policies described in Sections 4(b)(v) and 4(b)(vii) if the Executive's
employment had not been terminated in accordance with the most favorable plans,
practices, programs or policies of the Company and its affiliated companies as
in effect and applicable generally to other executives and their families during
the 90-day period immediately preceding the Effective Date or, if more favorable
to the Executive, as in effect generally at any time thereafter with respect to
other peer executives of the Company and its affiliated companies and their
families; provided, however, that if the Executive becomes re-employed with
another employer and is eligible to receive medical or other welfare benefits
under another employer-provided plan, the medical and other welfare benefits
described herein shall be secondary to those provided under such other plan
during such applicable period of eligibility (such continuation of such benefits
for the applicable period herein set forth shall be hereinafter referred to as
"Welfare Benefit Continuation") and the Executive shall no longer be entitled to
receive fringe benefits from the Company. For purposes of determining
eligibility of the Executive for retiree benefits pursuant to such plans,
practices, programs and policies, the Executive shall be considered to have
remained employed until the end of the Employment Period and to have retired on
the last day of such period; provided, however, that the Executive shall be
entitled to the more favorable of the retiree benefits in effect on the Date of
Termination or the retiree benefits in effect on the date that would have been
the last date of the Employment Period if the Executive had remained employed;
and

(iii) to the
extent not theretofore paid or provided, the Company shall timely pay or provide
to the Executive and/or the Executive's family any other amounts or benefits
required to be paid or provided or which the Executive and/or the Executive's
family is eligible to receive pursuant to this Agreement and under any plan,
program, policy or practice or contract or agreement of the Company and its
affiliated companies as in effect and applicable generally to other peer
executives and their families during the 90-day period immediately preceding the
Effective Date or, if more favorable to the Executive, as in effect generally
thereafter with respect to other peer executives of the Company and its
affiliated companies and their families (such other amounts and benefits shall
be hereinafter referred to as the "Other Benefits"); and

(iv) if the
Executive is age 55 or older, in lieu of receiving monthly benefits under the
SERP the Executive may elect, by giving at least 120 days written notice to
the Company, to receive the Actuarial Equivalent (as defined in the SERP) lump
sum value of the normal form of payment of SERP benefits based upon the
retirement benefit payable under the SERP at Executive's age upon the Date of
Termination, or to have such Actuarial Equivalent lump sum value transferred to
the Company's Deferred Compensation Plan or any successor deferred compensation
plan. If the Executive is younger than the minimum age for eligibility for
payment of SERP benefits, the Executive may elect to receive the discounted
present value, using a seven percent discount rate, of the Actuarial Equivalent
lump sum value of the SERP benefits to which the Executive would be entitled at
the minimum age.

(b) Death. If the
Executive's employment is terminated by reason of the Executive's death during
the Employment Period, this Agreement shall terminate without further
obligations to the Executive's legal representatives under this Agreement, other
than for payment of Accrued Obligations (which shall be paid to Executive's
estate or beneficiary, as applicable, in a lump sum in cash within 30 days
of the Date of Termination) and the timely payment or provision of the Welfare
Benefit Continuation and Other Benefits.

(c) Disability. If the
Executive's employment is terminated by reason of the Executive's Disability
during the Employment Period, this Agreement shall terminate without further
obligations to the Executive, other than for payment of Accrued Obligations
(which shall be paid to Executive in a lump sum in cash within 30 days of
the Date of Termination) and the timely payment or provision of the Welfare
Benefit Continuation and Other Benefits.

(d) Cause;
Other Than for Good Reason. If the
Executive's employment shall be terminated for Cause during the Employment
Period, this Agreement shall terminate without further obligations to the
Executive other than the obligation to pay the Executive's Annual Base Salary
through the Date of Termination, plus the amount of any compensation previously
deferred by the Executive, in each case to the extent theretofore unpaid. If the
Executive terminates employment during the Employment Period other than for Good
Reason, this Agreement shall terminate without further obligations to the
Executive other than for Accrued Obligations and the timely payment or provision
of Other Benefits. In such case all Accrued Obligations shall be paid to the
Executive in a lump sum in cash within 30 days of the Date of
Termination.

 

	
      7.
	
      Nonexclusivity
      of Rights

 

Nothing
in this Agreement shall prevent or limit the Executive's continuing or future
participation in any written plan provided by the Company or any of its
affiliated companies for executives generally and for which the Executive may
qualify, nor shall anything herein limit or otherwise affect such rights as the
Executive may have under any written contract with the Company or any of its
affiliated companies. Amounts that are vested benefits or that the Executive is
otherwise entitled to receive under any such plan or contract with the Company
or any of its affiliated companies at or subsequent to the Date of Termination
shall be payable in accordance with such plan or contract or agreement except as
explicitly modified by this Agreement.

 

	
      8.
	
      Full
      Settlement; Resolution of
Disputes

(a) The
Company's obligation to make the payments provided for in this Agreement and
otherwise to perform its obligations hereunder shall not be affected by any
set-off, counterclaim, recoupment, defense or other claim, right or action that
the Company may have against the Executive or others. In no event shall the
Executive be obligated to seek other employment or take any other action by way
of mitigation of the amounts payable to the Executive under any of the
provisions of this Agreement, and, except as provided in Section 6(b), such
amounts shall not be reduced whether or not the Executive obtains other
employment. The Company agrees to pay promptly upon invoice, to the full extent
permitted by law, all legal fees and expenses that the Executive may incur as a
result of any contest (regardless of the outcome thereof) by the Company, the
Executive or others of the validity or enforceability of, or liability under,
any provision of this Agreement or any guarantee of performance thereof
(including as a result of any contest by the Executive about the amount of any
payment pursuant to this Agreement).

(b) If there
shall be any dispute between the Company and the Executive (i) in the event
of any termination of the Executive's employment by the Company, whether such
termination was (A) in connection with or in anticipation of a Change of
Control under clauses (i) or (ii) of Section 1(l), or (B) for Cause,
or (ii) in the event of any termination of employment by the Executive,
whether Good Reason existed, then, unless and until there is a final,
nonappealable judgment by a court of competent jurisdiction declaring that such
termination was not in connection with or in anticipation of a Change of Control
or for Cause or that the determination by the Executive of the existence of Good
Reason was not made in good faith, the Company shall pay all amounts, and
provide all benefits, to the Executive and/or the Executive's family or other
beneficiaries, as the case may be, that the Company would be required to pay or
provide pursuant to Section 6(a) as though such termination were by the
Company without Cause or by the Executive with Good Reason; provided, however,
that the Company shall not be required to pay any disputed amounts pursuant to
this paragraph except upon receipt of an undertaking by or on behalf of the
Executive to repay all such amounts to which the Executive is ultimately
adjudged by such court not to be entitled.

 

	
      9.
	
      Excise
      Taxes

Notwithstanding
any other provisions of this Agreement, if any payments or distributions in the
nature of compensation are made to or for the benefit of the Executive, whether
paid or payable pursuant to this Agreement or otherwise (including the vesting
of stock options, the lapse of restrictions on restricted stock and any other
events that result in a "payment in the nature of compensation" within the
meaning of Section 280G of the Code) are characterized as Excess Parachute
Payments within the meaning of Section 280G of the Code or any successor
provision, then the Company shall pay to the Executive an additional amount
equal to the excise taxes imposed by Section 4999 of the Code or any
successor provision on the Executive's Excess Parachute Payments, plus an amount
equal to the federal and (if applicable) state income and excise taxes,
including without limitation FICA and Medicare taxes or other taxes which will
be payable by Employee as a result of this additional payment.

 

	
      10.
	
      Confidential
      Information

The
Executive shall hold in a fiduciary capacity for the benefit of the Company all
secret or confidential information, knowledge or data relating to the Company or
any of its affiliated companies, and their respective businesses, that shall
have been obtained by the Executive during the Executive's employment by the
Company or any of its affiliated companies and that shall not be or become
public knowledge (other than by acts by the Executive or representatives of the
Executive in violation of this Agreement). After termination of the Executive's
employment with the Company, the Executive shall not, without the prior written
consent of the Company or as may otherwise be required by law or legal process,
communicate or divulge any such information, knowledge or data to anyone other
than the Company and those designated by it. In no event shall an asserted
violation of the provisions of this Section 10 constitute a basis for
deferring or withholding any amounts otherwise payable to the Executive under
this Agreement.

 

	
      11.
	
      Successors

(a) This
Agreement is personal to the Executive and without the prior written consent of
the Company shall not be assignable by the Executive otherwise than by will or
the laws of descent and distribution. This Agreement shall inure to the benefit
of and be enforceable by the Executive's legal representatives.

(b) This
Agreement shall inure to the benefit of and be binding on the Company and its
successors and assigns.

(c) The
Company will require any successor (whether direct or indirect, by purchase,
merger, consolidation or otherwise) to all or substantially all the business
and/or assets of the Company to assume expressly and agree to perform this
Agreement in the same manner and to the same extent that the Company would be
required to perform it if no such succession had taken place. As used in this
Agreement, Company shall mean the Company as hereinbefore defined and any
successor to its business and/or assets as aforesaid that assumes and agrees to
perform this Agreement by operation of law, or otherwise.

 

	
      12.
	
      Miscellaneous

(a) This
Agreement shall be governed by and construed in accordance with the laws of the
state of Washington, without reference to principles of conflict of laws. The
captions of this Agreement are not part of the provisions hereof and shall have
no force or effect. This Agreement may not be amended or modified otherwise than
by a written agreement executed by the parties hereto or their respective
successors and legal representatives.

(b) All
notices and other communications hereunder shall be in writing and shall be
given by hand delivered to the other party or by registered or certified mail,
return receipt requested, postage prepaid, addressed as follows:

If to the
Executive:

Eric M.
Markell

Senior
Vice President Energy Resources and Planning

Puget
Sound Energy, Inc.

P. O. Box
97034

Bellevue,
WA 98009-9734

If to the
Company:

 

Puget
Sound Energy, Inc.

P. O. Box
97034, 

Bellevue,
WA 98009-9734

 

or to
such other address as either party shall have furnished to the other in writing
in accordance herewith. Notice and communications shall be effective when
actually received by the addressee.

(c) The
invalidity or unenforceability of any provision of this Agreement shall not
affect the validity or enforceability of any other provision of this
Agreement.

(d) The
Company may withhold from any amounts payable under this Agreement such federal,
state or local taxes as shall be required to be withheld pursuant to any
applicable law or regulation.

(e) The
Executive's or the Company's failure to insist on strict compliance with any
provision hereof or any other provision of this Agreement or the failure to
assert any right the Executive or the Company may have hereunder, including
without limitation the right of the Executive to terminate employment for Good
Reason pursuant to Section 5(c)(i)-(v), shall not be deemed to be a waiver
of such provision or right or any other provision or right of this
Agreement.

(f) The
Executive and the Company acknowledge that, except as may otherwise be provided
under any other written agreement between the Executive and the Company, the
employment of the Executive by the Company is "at will" and, prior to the
Effective Date, may be terminated by either the Executive or the Company at any
time. Moreover, if prior to the Effective Date, the Executive's employment with
the Company terminates, then the Executive shall have no further rights under
this Agreement.

(g) This
Agreement may be executed in counterparts, each of which counterparts shall be
deemed an original, but all of which together shall constitute one and the same
instrument.

IN
WITNESS WHEREOF, the Executive has hereunto set the Executive's hand and,
pursuant to authorization from the Board, the Company has caused this Agreement
to be executed in its name and on its behalf, all as of the day and year first
above written.

 

 

 

	 	
      PUGET
      SOUND ENERGY, INC.

	 	 
	 	 
	 	 
	 	
      By:
      Stephen P. Reynolds 

      Its
      President and Chief Executive Officer 

	 	 
	 	 
	 	 
	 	
      Eric
      M. Markell

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