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(b) Organization. CSR-Associated is a corporation duly formed and validly <br /> existing and in good standing under the laws of the State of Nevada and is qualified to do all <br /> things required of it under this Agreement. <br /> (c) Authority. CSR-Associated has the full right, title, authority and capacity <br /> to execute and perform this Agreement and to consummate all of the transactions contemplated <br /> herein, and the individual(s)who, on CSR-Associated's behalf, execute and deliver this <br /> Agreement and all documents to be delivered to City hereunder, are and shall be duly authorized <br /> to do so. <br /> (d) No Leases. The Transfer Lots are not subject to any leases, tenancies, <br /> licenses or rights of persons in possession. <br /> (e) Legal Compliance. To CSR-Associated's actual knowledge, the current <br /> use and operation of the Transfer Lots complies with all laws. CSR-Associated has received no <br /> written notice, and has no actual knowledge, of any violation or alleged violation of any legal <br /> requirement affecting the Transfer Lots, including any violation or alleged violation of any local, <br /> state or federal environmental, zoning, land use, handicap or fire law, ordinance, code, <br /> regulation, rule or order, and including variances or special permits affecting the Transfer Lots. <br /> (0 Litigation. There is no litigation pending or the subject of any appeal or, <br /> to CSR-Associated's actual knowledge, threatened, against CSR-Associated before any court or <br /> administrative agency which might result in CSR-Associated being unable to consummate this <br /> transaction or which would materially affect the Transfer Lots or the City's use thereof. <br /> S:\GDoughty\W IN W ORD\CSR\AgreementFinal.doc 6 <br /> Seattle/2.8.00 <br />