FIRE SERVICE AGREEMENT

Rural Fire Protection District #2, an Oregon Municipal Corporation, hereinafter referred to as
"District" and __________________ hereinafter referred to as "Owner" agrees as follows:

1        1.1    District hereby agrees to provide fire service through the Fire Department of the
                   City of Bend upon the terms and conditions specified in this Agreement to the
                   real property owned by the Owner which is in the process of being annexed by the
                   District and which is described on attachment "A" which is a part of this Agreement.

          1.2    The term of this Agreement shall be for not more than one (1 1/2) one and one
                   half years beginning the date of this Agreement and ending July 30th _______ 1999.

2.       CONSIDERATION;
          2.1    Owner agrees to pay District $___________________ for fire protection services
                   pursuant to this agreement. The amount shall be paid upon the execution of this
                   agreement.
          2.2    In addition to the consideration listed above, Owner agrees to reimburse District
                   for the actual cost to the District of special chemicals, equipment and supplies
                   needed to extinguish a fire, which are not regularly budgeted by the District and
                   for all costs associated with the cleanup of hazardous materials that are released
                   from or located on Owner's property. Such sums shall be paid within thirty (30)
                   days of billing.

3.       Fire service shall be supplied upon the following terms and conditions:

          3.1    District and Owners agree that all matters concerning the use and disposition of
                   District's fire fighting forces and the priorities assigned to the fighting fires and
                   conducting other fire department functions, shall be at the sole and exclusive
                   discretion of District. Current District response policy, which may be changed at
                   any time at the sole discretion of District, as follows:

                   Top Priority: High life hazard from fire; e.g., hospitals, schools and occupied
                   residences

                   Second Priority: High value properties; e.g., industrial and commercial property.

                   Third Priority: Other properties with high value; e.g., motor homes, non-dwelling
                   structures, and exposures.

                   Fourth Priority: Outside property with little or no value; e.g., small brush fires,
                   fences and outbuildings.