Additional Recorded Restrictions

1. Name and Address of Project. WEST HAYDEN ISLAND MOORAGE (“Moorage”) is located at 2630 N. Hayden Island Drive in Portland, County of Multnomah, Oregon.

2. Name. Address and Telephone Number of Developer/ Declarant (“Declarant”).

Hayden Island Associates of Oregon, L.L.C.

c/o Eagon Land Resources Co., Inc.

8835 S. W. Canyon Lane, Suite

304 Portland, Oregon 97225

(503) 203-8683

3. General Description of Moorage. Declarant is the lessee under Submerged and Submersible Land Lease No. ML-5951 from the State of Oregon, acting by and through the Division of State Lands (“State Lease”), for property located in the North Harbor of the Columbia River adjacent to the property located at 2630 N. Hayden Island Drive in Portland, County of Multnomah (the “Upland”). Declarant has developed a houseboat moorage facility on a portion of the river included within the State Lease with related facilities on the Upland.

Declarant is offering to sell each of fifty-six (56) subleases to Moorage Spaces in the Moorage as shown on the drawing attached hereto as Exhibit “A”. Declarant will provide each purchaser of a sublease with a license to use a Garage Space on the Upland pursuant to a license agreement.

The common facilities consist of the following portions of the Moorage (“Common Facilities”):

A. The Upland and driveway, monuments, security gates, landscape, fencing, garage spaces and buildings, and parking area located thereon;

B. The area leased under the State Lease, except for the Moorage Spaces;

C. Pilings, gates, floating ramps, walkways, docks, and utility and communication lines to the point of connection with a houseboat; and

D. All other portions of the Moorage in common use or for the common benefit of all.  Declarant is not reserving the right to construct any additional improvements in the Moorage other than those provided for in the Declaration.

4. Administration Generally. Pursuant to the Declaration of Covenants,

Conditions, Restrictions and Easements for West Hayden Island Moorage, recorded in the Records of Multnomah County, Oregon, on August 1, 1997, as Document No. 97116861 (the “Declaration”) the West Hayden Island Moorage Owners Association (the “Association”) has been organized to serve as a means through which the owners of subleases of Moorage Spaces may take action with regard to the administration, management and operation of the Moorage. Each owner is automatically a member of the Association. The Board of Directors is the governing body of the Association. Unless you serve as a member of the Board, hold an office or are on a committee appointed by the Board, your control of the administration and operation of the Moorage will, in most cases, be limited to your right to vote on certain matters as a member of the Association. There are actions that can be taken by the Board of Directors and the officers without a vote of the members, which can have a significant impact upon all owners.

5. Transfer to Association. Not later than ninety (90) days after the sale of all Moorage Spaces in the Moorage, Declarant will assign to the Association the State Lease, together with Declarant’s interest in all subleases of Moorage Spaces, and fee title to the Common Facilities subject to all encumbrances, covenants, conditions, restrictions, licenses, and easements existing at the time of conveyance.

6. Obligation to Pay Assessments. In order to provide funds for the operation and maintenance of the Moorage, the Association will levy assessments against your Moorage Space. If you are delinquent in the payment of assessments, the Association may enforce payment through a court proceeding or your Moorage Space may be liened and sold through a foreclosure proceeding.

The estimated annual expenses of the Association as of the date of this Disclosure Statement, including the amount you may expect to pay through assessment, are set forth in the estimated budget included in this Disclosure Statement. There is no guarantee the assessments will be adequate to pay the expenses of the Association.

7. Status of Construction. Construction of the Moorage was substantially complete on July 20, 1997.

8. Financing. Declarant is not contemplating offering any financing for purchase of the Moorage Spaces. Declarant has contacted several lenders and may introduce prospective purchasers to lenders who may be willing to make loans. However, Declarant is not undertaking any obligation to assist prospective purchasers to obtain financing.

[ There is no paragraph 9 ]

10. No Warranty. No warranties are given with respect to any portion of the Moorage and purchasers will accept the Moorage Space in its present condition, AS IS, including any latent defects, without any representation or warranties, express or implied.

11. Estimated Budget. A copy of the estimated budget for the Moorage and for the estimated assessments for each Moorage Space is attached hereto as Exhibit “B”. Except as otherwise specifically provided in the Declaration, the cost of maintenance, repair, and replacement of the Common Facilities shall be a common expense, and the performance of such work shall be the responsibility of the Association, except that any damage caused by the negligence or intentional act of an owner, his invitee, tenant, guest or servant shall be repaired by the Association at such owner’s sole cost and expense. Common expenses shall be assessed and apportioned among the owners equally.

The budget is an estimate only. Declarant does not represent or guarantee that the assessment, based on the estimated budget, shall be sufficient to meet the common expenses of the Moorage.

12. Documents by Which West Hayden Island Moorage Owners Are Bound.

A. West Hayden Island Moorage Declaration. The Moorage Declaration creates West Hayden Island Moorage. The Declaration, which is recorded in the Multnomah County Deed Records, describes the project, reserves certain rights to Declarant relating to sale of individual Moorage Spaces, and provides for restrictions on how individual owners may use their Moorage Spaces.

B. West Hayden Island Moorage Bylaws. The Bylaws, which have been adopted by Declarant on behalf of West Hayden Island Moorage Owners Association, have been recorded simultaneously with the Declaration. The Bylaws set forth the working rules of the operation of the Association, provide for election of directors and officers, impose assessments, provide for insurance, and contain certain use restrictions and the like.

C. Rules and Regulations of West Hayden Island Moorage. No rules and regulations have been promulgated as of the date of this Disclosure Statement, although the Board of Directors has authority to do so. The rules and regulations cannot be contrary to any provision in the Declaration or Bylaws.

D. Deed of Sublease. Purchasers will execute a Deed of Sublease covering the purchased Moorage Space, which deed contains the Purchaser’s covenants, among other things, to comply with the Declaration, Bylaws, and rules and regulations, as well as the terms of the underlying State Lease.

E. Garage Space License Agreement. Purchasers will execute a License Agreement authorizing their use of a Garage Space located on the Upland. The License Agreement will require you to comply with the Declaration, Bylaws, rules and regulations, and additional restrictions set forth in the License Agreement regarding the use of the Garage Space.

F. Additional Recorded Restrictions. In addition to the provisions of the Declaration, the Articles of Incorporation for the Association, the Bylaws and any rules or regulations promulgated thereunder, each owner of a space in the Moorage is subject to covenants, conditions, restrictions, easements, and assessments as set forth in the instruments listed on Exhibit “C”.

13. Insurance. * The Association will carry property loss insurance on the Common Facilities. However, the policy will have a deductible. Purchasers will be responsible for the

“deductible, ” and Purchasers must insure their houseboat, furniture, and other personal property, including any personal property located in the owner’s Garage Space. Generally, the Board of Directors will determine the amount of the deductible for property loss insurance policies, as well as other insurance policies required to be procured by the Association under Article 8 of the Bylaws. In determining the deductible under the policies, the Board, among other factors, shall take into consideration the availability, cost, and loss experience of the Association. In this regard, as in other Board responsibilities, the Board members are required to exercise their reasonable business judgment.

The Association will have no responsibility to procure or assist in procuring property loss insurance for any owner or tenant for:

A. Damage to a Moorage Space not covered by the Association’s policy; or

B. For any damage or loss to the owner’s or tenant’s houseboat or other personal property.

Owners will be responsible for purchasing insurance policies insuring their Moorage Space for the deductible amount under the Association’s policies and for insuring their own houseboat and other personal property for any loss or damage. Tenants will be responsible for insuring their own houseboat and other personal property for any loss or damage. The Board of Directors must notify all owners of the amount of the deductible under the Association’s policies. To the extent reasonably practicable, the Board of Directors must give at least thirty (30) days notice to the owners of any material increase in the deductible proposed in renewal or replacement insurance policies. Owners and tenants of all Moorage Spaces must procure and maintain comprehensive liability policies having combined limits of not less than One Million and No/100 Dollars ($1,000,000.00) for each occurrence. Such insurance shall provide coverage for, but not be limited to, the negligent acts of the owner(s) and tenants(s) and their guests or other occupants of the Moorage Space(s) for damage to the Common Facilities, Moorage Spaces, and the property of others located therein.

If the Association is required or elects to reconstruct any of the Moorage which has been damaged or destroyed, all affected owners (i. e. owners whose Moorage Space has been damaged or destroyed) will contribute to the Association all amounts received by them from property loss insurance policies to help pay for the repairs. To the extent such insurance proceeds are unavailable or unpaid when needed, the Association will assess any owner the amount of the Association’s “deductible” under its policy to pay the cost of repairing or reconstructing such owner’s Moorage Space. Such assessment will be both a personal obligation of such owner and a lien against such owner’s Moorage Space in the same manner as any other Association assessment.

14. Pet Restrictions. No pets or animals shall be raised, kept or permitted on or in the Moorage Space or Common Facilities, except as follows:

A. A reasonable number of birds and fish may be kept in houseboats provided they are quiet and are not raised for commercial purposes.

B. No more than one (1) dog and two (2) cats will be permitted to remain in each houseboat, subject to the following:

1) Each dog must be kept on a leash, and must be in the company of its owner when outside the houseboat.

2) No outside kennels or animal enclosures of any kind will be permitted.

3) When outside, no dog will be left unattended or tied to the exterior of any houseboat. Each owner will be required to clean up after his pet anywhere on the Moorage.

4) Each animal must conform to rules and regulations of behavior as adopted and revised by the Board of Directors from time to time.

5) Each owner will be responsible to control barking, aggressive behavior or any other nuisance or problem created by his pet. If, after a warning by the Association, the pet continues to be a nuisance as judged by a majority vote of the Board of Directors, the Board, after written notice and opportunity for the owner to be heard, may require that the pet be permanently removed from the Moorage.

6) The owner of a Moorage Space shall be held responsible for all the actions of any tenant’s or occupant’s pets.

15. Restrictions on Alienation; Use or Occupancy. Article 4 of the Declaration contains the use and occupancy restrictions and rules of conduct for the Moorage, including restrictions on structures permitted in the Moorage and the construction thereof, the use of the Common Facilities, restrictions on leasing, pets, and other limitations.

In an effort to make this Disclosure Statement meaningful and readable, the Declarant . has chosen to summarize those items which are found in the Declaration and Bylaws. There maybe other significant aspects of ownership of a Moorage ~ Space at West Hayden Island Moorage.  No purchaser should acquire an interest in a Moorage Space at. West Hayden Island Moorage, without having first carefully reviewed all the documents to which the space is subject, and satisfying himself that the interest being purchased meets his needs.

DATED this 10th day of August , 1997.

Ken Eagan