Claudia F. Walker - Page 7

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          The Transactions Involving the Happy Valley Property                        
               The Happy Valley property was listed for sale with a realtor           
          sometime during 1997.  Mr. Walker served as the primary contact             
          person for the realtor on the sale of the Happy Valley property.            
          On or about August 19, 1997, a prospective purchaser, Cruz                  
          Development, Inc. (Cruz Development), offered to buy the Happy              
          Valley property.  Cruz Development was not related to petitioner            
          or to Mr. Walker, and neither petitioner nor Mr. Walker had any             
          legal obligations to Cruz Development.  Cruz Development’s offer            
          to buy the Happy Valley property was based on obtaining approval            
          for 48 buildable lots on the property at a price of $20,000 per             
          lot.  The sale of the Happy Valley property to Cruz Development,            
          however, was not completed.                                                 
               On September 22, 1997, petitioner signed a document entitled           
          “Settlement Agreement” whereby she agreed to accept Mr. Walker’s            
          25-percent interest in the Happy Valley property in consideration           
          for a credit against the $500,000 equalizing money judgment.                
          The Settlement Agreement used the following language:                       
               I Claudia F. Walker hereby agree to accept from Bert                   
               Walker his 25% interest in real property Tl. 2000 and                  
               Tl.2090 - Happy Valley, Oregon.                                        
               This assignment will credit Bert Walker his 1/4                        
               interest being approximately $213,500 less                             
               approximately $60,000 Capital Gains Tax; leaving                       
               $153,500 credit towards the divorce settlement.                        
               This calculation is based on 44 future building lots;                  
               the settlement amount may be adjusted up or down by                    
               $20,833,-per lot after subdivision approval.                           





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