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HomeMy WebLinkAbout210-04 RESOLUTIONRESOLUTION NO. 210-0 G A RESOLUTION EXPRESSING THE INTENT OF THE CITY OF FAYETTEVILLE, ARKANSAS TO REIMBURSE CERTAIN EXPENDITURES OF THE CITY PERTAINING TO FINANCING, PLANNING, ACQUISITION AND DEMOLITION IN CONNECTION WITH THE HIGHWAY 71 EAST SQUARE REDEVELOPMENT DISTRICT PROJECT WITH THE PROCEEDS OF AN ISSUE OR ISSUES OF TAX-EXEMPT BONDS; AND STATING OTHER MATTERS PERTAINING THERETO WHEREAS, in order to alleviate blight and encourage development within the City of Fayetteville, Arkansas (the "City"), the City presently intends (i) to acquire certain real property and demolish existing structures thereon, which property is located within the Highway 71 East Square Redevelopment District and consists primarily of the former Mountain Inn property, and (i) to sell such cleared property to a private developer for the purpose of constructing a hotel and meeting facility thereon; and WHEREAS, the City presently intends to finance the costs of acquiring and demolishing such property (the "Project") through the issuance of one or more series of tax-exempt bonds of the City (the "Bonds"); and WHEREAS, the City has determined the need to expend its funds to pay certain costs of the Project prior to the issuance of the Bonds; and WHEREAS, in order to utilize the proceeds of tax-exempt bonds to reimburse original expenditures made by the City with respect to the Project, it is necessary under the Internal Revenue Code of 1986, as amended (the "Code") and U S Treasury Regulation Section 1.150-2 that the City make a present declaration of its official intent to make such reimbursement; NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF FAYETTEVILLE, ARKANSAS: Section 1: That the City intends to issue its Bonds in one or more series in aggregate principal amount not to exceed Five Million Dollars ($5,000,000.00) under the Constitution and laws of the State of Arkansas to finance acquisition and demolition costs related to the Project. Section 2: That the City intends to utilize a portion of the proceeds of the Bonds to reimburse itself for certain expenditures relating to the Project made by the City prior to the issuance of the Bonds with respect to financing, planning, acquisition and demolition. It is anticipated that the Project expenditures to be reimbursed will be made from the City's general fund. • • Section 3: That the City intends this resolution to be its declaration of `official intent" under the Code and U.S. Treasury Regulation Section 1.150-2 to reimburse certain original expenditures with respect to the Project. ADOPTED and APPROVED this 215` day of December, 2004. ATTEST: .. iiiiiii rte% ••(,\SY O,c •e&l::S -U• •• ; FAY ETT EVILLE ; J SONIIRA SMITH, City Clerk 2 APPROVED: ProfessiiPal Land Title Company of •kansas 2713 S.E. I St ,Ste 7 CAN N Bentonville, AR 72712 ,� 479-271-6003 • 479-271-6075(fax) June 27, 2005 City of Fayetteville Fayetteville, AR 72701 Re: Property at: 16 E Mountain Street , Fayetteville, AR 72701 Dear City of Fayetteville: Please find enclosed the following documents: 12. Original Final Title Policy Number: OP6530849 2. Original Warranty Deed Filed: April 22, 2005 @ 11:22:59 AM If you have any questions, please call our office. Sincerely, Final Policy Department It/4/0 ECS,;fit IA51 Y�it;Ray Marr f l (JJ math. FATIC-402-M Owner's Schedule A • r COMMERCIAL X RESIDENTIAL CONSTRUCT. LOAN❑ NEW HOME SALEU RESALE X 21e MORTGAGED REFINANCED FORECLOSUREO REISSUE? PRIOR POLICY # AMOUNT $ SIMUL. POLICY# AMOUNT FIRST AMERICAN TITLE INSURANCE COMPANY SCHEDULE A Issuing Agent: Professional Land Title Company of Arkansas. 2713 S.E. I St., Ste 7 Bentonville, AR 72712 Issuing Agent # IA20 Agent's File No.: 111-028 Policy Number: OP6530849 Amount: $500,000.00 1. DATE OF POLICY: April 22, 2005 @ 11:22:59 AM 2. Name of Insured: City of Fayetteville 3 The estate or interest in the land insured herein is designated as: FEE SIMPLE • The instruments creating the estate or the interest in the real estate which is hereby insured are described as follows: Warranty Deed from McRoy and McNair Inc. to City of Fayetteville , dated April 20, 2005 and filed on April 22, 2005 @ 11:22:59 AM as Instrument # 2005-00017155 in the records of Washington County, Arkansas. The land referred to in this Policy is in the State of Arkansas, County of Washington described below or, if no description appears below, is the land described in the instrument(s) set forth in item 4. above: A strip of the equal and uniform width of One (1) foot off of the West side of Lot Numbered Fifteen (15) and all of Lot Numbered Fourteen (14) in Block Twenty-eight (28) in the City of Fayetteville, as designated on the original plat of the Town of Fayetteville, now on file in the office of the Circuit Clerk and Ex -Officio Recorder of Washington County, Arkansas. June 27, 2005 Professional La Issuing Agent Signing Agents Michael P. Ragsdale, SA20-02 Brian A. Perry, SA20-03 FATIC-102-M Owners Schedule B Agent File No.: 111-028 • • First American Title Insurance Company SCHEDULE B Policy Number FA - OP6530849 OWNERS This policy does not insure against loss or damage by reason of the following: 1. Rights or claims of parties in possession and visible easements not shown by public records. 2. Easements, or claims of easements, not shown by the public records. 3. Encroachments, overlaps, boundary line disputes, or other matters which would be disclosed by an accurate survey or inspection of the premises. 4. Any lien, or right to a lien, for services labor or material heretofore or hereafter furnished, imposed by law and not shown by the public records. 5. Community property, dower, curtesy, survivorship, or homestead rights, if any, of any spouse of the insured. 6. Any title or rights asserted by anyone including but not limited to person, corporations, governments or other entities, to tide lands, or lands comprising the shores or bottoms of navigable rivers, lakes bays, ocean or gulf, of lands beyond the line of the harbor or bulkhead lines as established or changed by the United States Government or water rights, if any. 7. Reservations contained in Patent from the United States of America or State where the land described in Schedule A is located. 8. Restrictive Covenants affecting the property described in Schedule A. 9. Any claim, which arises out of the transaction vesting in the insured the estate or interest insured by this policy, by reason of the operation of federal bankruptcy, state insolvency, or similar creditor's rights laws. 10. General and taxes for 2005 and special taxes for 2006 and subsequent years not yet due and payable. I I. Covenants or Restrictions other than city or county ordinances, but deleting any covenant, condition or restriction indicating a preference, limitation or discrimination based on race, color, religion, sex, handicap, familial status, or national origin to the extent such covenants, condition or restrictions violate 42 USC 3604(c). Parcel No. 765-01938-000 • WARRANTY DEED CORPORATION BE IT KNOWN BY THESE PRESENTS: THAT WE, McRoy & McNair, Inc., an Arkansas Corporation, hereinafter called GRANTOR, for and in consideration of the sum of One Dollar ($1.00) and other good and valuable consideration, the receipt of which is hereby acknowledged, do hereby grant, bargain, sell and convey unto the City of Fayetteville, Arkansas, a municipal corporation, hereinafter called GRANTEE, and unto Grantee's successors.and assigns, the following described land situated in the County of Washington, State of Arkansas, to -wit: • DIVUItM D c30 Recorded Fee Amt: Washlnat B etts St F11e2 ILIIILIIOIps[IILIIUhlII 1111111111111111111 009409600001 Tvoe REL 04/22/2005 at 1:22:69 AM $8.00 Peas of 1 n County. AR mos Clrcult Clerk 05-00017155 A strip of the equal and uniform width of one (1) foot off of the west side of Lot Numb- red Fifteen (15) and all of Lot Numbered Fourteen (14) in Block Numbered Twenty-eight (28) in the City of F. yetteville, as designated on the original plat of the Town of Fayetteville, now on file in the office of the Circ it Clerk and Ex -Officio Recorder of Washington County, Arkansas. TO HAVE AND TO HOLD the said lands and appurtenances thereunto belonting unto the said Grantee and Grantee's successors and assigns, forever. And the said Grantors, hereby covenant that the are lawfully seized of said lands and premises; that the same is unencumbered, and that the Grantors will forever warrant an• defend the title to the said lands against all legal claims whatever. IP Don WITNESS the execution hereof on thisPCth day of April, 2005. / OF Star. 1 McRoy & McNair, Inc., an Arkansas Corporation oftis ///l s r t in" [Please Print Title] e•n Fowler [Please Print Title] STATE OF ARKANSAS COUNTY OF ACKNOWLEDGMENT ) BE IT REMEMBER. D, th :t on this date, before the undersigned, a duly commission and for said County and Stat: •e .onally appeared duly commissi•'ed,arl�d acting, Don , o known as the persons who executed the foregoing document as + t. 411tear and d and acting Notary Public within is and Leon Fowler, to me well I QJl &p,n-- respectively of McRoy & McNair, Inc., an Arkansas Corporation, and who stated and acknowledged thatt delivered said instrument for the consideration, uses and purposes therein mentioned and 46 WITNESS my hand and seal on.this. (xv ' day of April, MY COMMISSION EXPIRE NOTApy viesmatoi CatlimmORT��r, ey had so signed, executed and et forth. Notary Public Professi&l Land Title Company of Ilkansas 2713 S.E I St., Ste 7 SCAN N Bentonville, AR 72712 479-271-6003 4 479-271-6075(fax) June 27, 2005 City of Fayetteville Fayetteville, Ar 72701 Re: Property at. 20 E. Mountain, Fayetteville, Ar 72701 Dear City of Fayetteville: Please find enclosed the following documents: 12. Original Final Title Policy Number: OP6530851 2. Original Warranty Deed Filed: April 22, 2005 @ 11:22:17 AM If you have any questions, please call our office. Sincerely, Final Policy Department i ipPis. ono --0 acy b Wee 0,t, 7400 First American Title Insurance Company SUBJECT TO THE EXCLUSIONS FROM COVERAGE, THE EXCEPTIONS FROM COVERAGE CONTAINED IN SCHEDULE B AND THE CONDITIONS AND STIPULATIONS, FIRST AMERICAN TITLE INSURANCE COMPANY, a California corporation, herein called the Company, insures, as of Date of Policy shown in Schedule A, against loss or damage, not exceeding the Amount of Insurance stated in Schedule A. sustained or incurred by the insured by reason of 1. Title to the estate or interest described in Schedule A being vested other than as stated therein; 2. Any defect in or lien or encumbrance on the title; 3. Unmarketability of the title; 4. Lack of a right of access to and from the land. The Company will also pay the costs, attorneys' fees and expenses incurred in defense of the title, as insured, but only to the extent provided in the Conditions and Stipulations. 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Aue 10 110!1w30! JO suo!suaw!p '1313eley3 9141 (!!) :pue' ayi 10 juewAolua to 'asn 'Aauedn000 oqj (!) 01 6w1e!ai l0 6uy!q!gwd '6u!lelnbai '6w13u1sa1 (suoyelnbai to 'saoueu!plo 'sMel 6u!uoz pue 6u!pl!nq of pallwg lou Inq 6wpnpul) uoyeln6al lewawwano6 Jo aoueulplo 'Mel AoV (q) (e) C .3 .l :10 uoseal Aq aspe yap sasuadxa Jo seal ,sAawone 'woo 'getup 10 sso' Aed jou g!M Auedwo3 9141 pue Aogod 9114110 a6elanoo ay1 wall pepnpxa A!ssaidxa ale sla4ew 6u!MOgo1 ayi 39Va3A03 WOW SNOIS1113X3 First American Title Insurance Company SUBJECT TO THE EXCLUSIONS FROM COVERAGE, THE EXCEPTIONS FROM COVERAGE CONTAINED IN SCHEDULE B AND THE CONDITIONS AND STIPULATIONS, FIRST AMERICAN TITLE INSURANCE COMPANY, a California corporation, herein called the Company, insures, as of Date of Policy shown in Schedule A, against loss or damage, not exceeding the Amount of Insurance stated in Schedule A, sustained or incurred by the insured by reason of: 1. Title to the estate or interest described in Schedule A being vested other than as stated therein; 2. Any defect in or lien or encumbrance on the title; 3. Unmarketability of the title; 4. Lack of a right of access to and from the land. The Company will also pay the costs, attorneys' fees and expenses incurred in defense of the title, as insured, but only to the extent provided in the Conditions and Stipulations. First American Title Insurance Company 42-304 12192 '66082 ue6!113!W 'Awl '6811 x08 'Old 'peog lanea8 6!g IsaM ono; le Auedwoo ail of passap -pe aq Heys pue A3Hod 5!141 10 lagwnu ayi apnpu! Heys Auedwoo a41 paUs!wn{ ag 01 peunba 60!!JM u! luawawls Aue pue Auedwoo a41 U84!6 aq 01 pa!nba saOnou IIV '1N3S 383HM '333110N 'LL 'p3149 pue 931o; Ilnl u! u!ewaJ Heys suasInad/91420112 pue uo!s!nad 1241 apnpu! 01 IOU pawaap a4 Heys A3Hod all 'mel aae3Hdde Japun algea3loluaun Jo poem! play s! 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Name of Insured: City of Fayetteville 3 The estate or interest in the land insured herein is designated as: FEE SIMPLE 4. The instruments creating the estate or the interest in the real estate which is hereby insured are described as follows: Warranty Deed from Marjorie H Niblock, surviving spouse of Walter Niblock to City of Fayetteville , dated April 20, 2005 and filed on April 22, 2005 @ 11:22:17 AM as Instrument tt 2005-00017153 in the records of Washington County, Arkansas. 5. The land referred to in this Policy is in the State of Arkansas, County of Washington described below or, if no description appears below, is the land described in the instrument(s) set forth in item 4. above: Lot Numbered Fifteen (15) in Block Twenty -Eight (28) as designated upon the original plat of the Town of Fayetteville, Arkansas, now on file in the Office of the Circuit Clerk and Ex -Officio Recorder of Washington County, Arkansas, except a strip of equal and uniform width of One (1) foot off the West side thereof. June 27, 2005 Professional /. '01. mpany of Arkansas Issuing A,/ / Signing Agents Michael P. Ragsdale, SA20-02 Brian A. Perry, SA20-03 FATIC-402 M owners schedule B Agent File No.: 111-039 • • First American Title Insurance Company SCHEDULE B Policy Number FA - OP6530851 OWNERS This policy does not insure against loss or damage by reason of the following: 1. Rights or claims of parties in possession and visible easements not shown by public records. 2. Easements, or claims of easements, not shown by the public records. 3. Encroachments, overlaps, boundary line disputes, or other matters which would be disclosed by an accurate survey or inspection of the premises. 4. Any lien, or right to a lien, for services labor or material heretofore or hereafter furnished, imposed by law and not shown by the public records. 5. Community property, dower, curtesy, survivorship, or homestead rights, if any, of any spouse of the insured. 6. Any title or rights asserted by anyone including but not limited to person, corporations, governments or other entities, to tide lands, or lands comprising the shores or bottoms of navigable rivers, lakes bays, ocean or gulf, of lands beyond the line of the harbor or bulkhead lines as established or changed by the United States Government or water rights, if any. 7. Reservations contained in Patent from the United States of America or State where the land described in Schedule A is located. 8. Restrictive Covenants affecting the property described in Schedule A. 9. Any claim, which arises out of the transaction vesting in the insured the estate or interest insured by this policy, by reason of the operation of federal bankruptcy, state insolvency, or similar creditor's rights laws. 10. General and taxes for 2005 and special taxes for 2006 and subsequent years not yet due and payable. 11. Covenants or Restrictions other than city or county ordinances, but deleting any covenant, condition or restriction indicating a preference, limitation or discrimination based on race, color, religion, sex, handicap, familial status, or national origin to the extent such covenants, condition or restrictions violate 42 USC 3604(c). Parcel No. 765-01939-000 • WARRANTY DEED BE IT KNOWN BY THESE PRESENTS: THAT WE, Marjorie H. Niblock, surviving spouse of Walter R. Niblock, deceased, hereinafter called GRANTOR, for and in consideration of the sum of One Dollar ($1.00) and other good and valuable consideration, the receipt of which is hereby acknowledged, do hereby grant, bargain, sell and convey unto the City of Fayetteville, Arkansas, a municipal corporation, hereinafter called GRANTEE, and unto Grantee's successors and assigns, the following described land situated in the County of Washington, State of Arkansas, to -wit: r 11111111111111111101113111111111 III Do D 40840968000 Tvoe REL Reno ded 04/22/2006 at 1 22 17 AM Fos mt: S8.00 Pace 1 of 1 Wa h naton County. AR Be t Stamps Circuit Cle k 005-00017153 Fie Lot Numbered Fifteen (15) in Block Twenty-eight (28) as designated upon the ori Fayetteville, Arkansas, now on file in the office of the Circuit Clerk and Ex-Offici County, Arkansas, except a strip of equal and uniform width of One (1) foot off the inal plat of the Town of Recorder Washington est side thereof. TO HAVE AND TO HOLD the said lands and appurtenances thereunto belonging unto the said Grantee and Grantee's successors and assigns, forever. And the said Grantors, hereby covenant that the are lawfully seized of said lands and premises; that the same is unencumbered, and that the Grantors will forever warrant an defend the title to the said lands against all legal claims whatever. WITNESS the execution hereof on this �O day of April, 2005. Marjorie iblock STATE OF ARKANSAS ACKNOWLEDGMENT COUNTY OF r BE IT REMEMBE' EP .that on this date, before the undersigned, a duly commission and for said County and Stat- rsonally appeared Marjorie H. Niblock, surviving spouse to me well known as the person who executed the foregoing document, and who stated an signed, executed and delivered said instrument for the consideration, uses and purposes th ss. WITNESS my hand and seal on this MY COMMISSION EXPI day of April, 2005. Notary Public d and acting Notary Public within f Walter R. Niblock, deceased, acknowledged that she had so rein mentioned and set forth. Professitl Land Title Company of kansas 2713 S.E.1St.,Ste 7 SCANNED Bentonville, AR 72712 479-271-6003 • 479-271-6075(fax) July 13, 2005 City of Fayetteville Fayetteville, AR 72701 Re: Property at: 41 East Center Street, Fayetteville, AR 72701 Dear City of Fayetteville: Please find enclosed the following documents: 12. Original Final Title Policy Number: OP6530853 2. Copy of Warranty Deed Filed: April 22, 2005 @ 11:22:41 AM If you have any questions, please call our office. Sincerely, Final Policy Department pori 71316 tentAet 4Et. aio-o4 First American Title Insurance Company SUBJECT TO THE EXCLUSIONS FROM COVERAGE, THE EXCEPTIONS FROM COVERAGE CONTAINED IN SCHEDULE B AND THE CONDITIONS AND STIPULATIONS, FIRST AMERICAN TITLE INSURANCE COMPANY, a California corporation, herein called the Company, insures, as of Date of Policy shown in Schedule A, against loss or damage, not exceeding the Amount of Insurance stated in Schedule A, sustained or incurred by the insured by reason of: 1. Title to the estate or interest described in Schedule A being vested other than as stated therein; 2. Any defect in or lien or encumbrance on the title; 3. Unmarketability of the title; 4. Lack of a right of access to and from the land. 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WAND NEW HOME SALED RESALE X 2"e MORTGAGED REFINANCED FORECLOSURED REISSUE? PRIOR POLICY # AMOUNT $ SIMUL. POLICY# AMOUNT FIRST AMERICAN TITLE INSURANCE COMPANY SCHEDULE A Issuing Agent: Professional Land Title Company of Arkansas. 2713 S.E. I St., Ste 7 Bentonville, AR 72712 Issuing Agent # IA20 Agent's File No.: 116-001 Policy Number: OP6530853 Amount: $413,000.00 I. DATE OF POLICY: April 22, 2005 @ 11:22:41 AM 2. Name of Insured: City of Fayetteville, a Limited Liability Company 3 The estate or interest in the land insured herein is designated as: FEE SIMPLE 4. The instruments creating the estate or the interest in the real estate which is hereby insured are described as follows: Warranty Deed from Washington County, Arkansas to City of Fayetteville, Arkansas, a municipal corporation , dated April 20, 2005 and filed on April 22, 2005 @ 11:22:41 AM as Instrument # 2005-00017154 in the records of Washington County, Arkansas. 5. The land referred to in this Policy is in the State of Arkansas, County of Washington described below or, if no description appears below, is the land described in the instrument(s) set forth in item 4. above: Lot Numbered One (1), in Block Numbered Twenty -Eight (28), in the Original Plat of the Town (now City) of Fayetteville, Arkansas, as shown upon the plat thereof, on file in the office of the Circuit Clerk and Ex -Officio Recorder of Washington County, Arkansas. July 13 Profes Issuin tle Company of Arkansas Signing Agents Michael P. Ragsdale, SA20-02 Brian A. Perry, SA20-03 FATIC-403-M Owners Schedule e Agent File No.: 116-001 • a• First American Title Insurance Company SCHEDULE B Policy Number FA - OP6530853 OWNERS This policy does not insure against loss or damage by reason of the following: 1. Rights or claims of parties in possession and visible easements not shown by public records. 2. Easements, or claims of easements, not shown by the public records 3. Encroachments, overlaps, boundary line disputes, or other matters which would be disclosed by an accurate survey or inspection of the premises. 4. Any lien, or right to a lien, for services labor or material heretofore or hereafter furnished, imposed by law and not shown by the public records. 5. Community property, dower, curtesy, survivorship, or homestead rights, if any, of any spouse of the insured. 6. Any title or rights asserted by anyone including but not limited to person, corporations, governments or other entities, to tide lands, or lands comprising the shores or bottoms of navigable rivers, lakes bays, ocean or gulf, of lands beyond the line of the harbor or bulkhead lines as established or changed by the United States Government or water rights, if any. 7. Reservations contained in Patent from the United States of America or State where the land described in Schedule A is located. 8. Restrictive Covenants affecting the property described in Schedule A. 9. Any claim, which arises out of the transaction vesting in the insured the estate or interest insured by this policy, by reason of the operation of federal bankruptcy, state insolvency, or similar creditor's rights laws. 10. General and taxes for 2005 and special taxes for 2006 and subsequent years not yet due and payable. 11. Covenants or Restrictions other than city or county ordinances, but deleting any covenant, condition or restriction indicating a preference, limitation or discrimination based on race, color, religion, sex, handicap, familial status, or national origin to the extent such covenants, condition or restrictions violate 42 USC 3604(c). Parcel No 765-01929-000 • WARRANTY DEED CORPORATION BE IT KNOWN BY THESE PRESENTS: THAT WE, Washington County, Arkansas, hereinafter called GRANTOR, for and in consideration of the sum of One Dollar ($1.00) and other good and valuable consideration, the receipt of which is hereby acknowledged, do hereby grant, bargain, sell and convey unto the City of Fayetteville, Arkansas, a municipal corporation, hereinafter called GRANTEE, and unto Grantee's successors and assigns, the following described land situated in the County of Washington, State of Arkansas, to - wit: • Doc tD Recorded Fee Amt: Washlnato Bette Sta F11e20 1111111111111111111 008409590001 TVDO REL 04/22/2005 at 1422 41 AM 8.00 Facie of 1 County. AR os Circuit Clerk 5-00017154 Lot Numbered One (1), in Block Numbered Twenty-eight (28), in the Original Plat o the Town (now City) of Fayetteville, Arkansas, as shown upon the plat thereof, on file in the office of the Cir•uit Clerk and Ex -Officio Recorder of Washington County, Arkansas. TO HAVE AND TO HOLD the said lands and appurtenances thereunto belon ing unto the said Grantee and Grantee's successors and assigns, forever. And the said Grantors, hereby covenant that the are lawfully seized of said lands and premises; that the same is unencumbered, and that the Grantors will forever warrant and defend the title to the said lands against all legal claims whatever. WITNESS the execution hereof on this 626 4--- of April, 2005. ATTEST: a Washington County, Arkansas G• e •-; ' \� [Please Print Name &Title] CC1 L>3 -c -• t..(- -?1 \ t. unto I / rrt /flAJr104S/dt -. 6. [Please Print Name & Tltl=] STATE OF AR SAS . COUNTY OF ACKNOWLEDGMENT ss. BE IT REMEMBE ED, t at on this date, before the undersigned, a duly commissione and for said County and Sta = • - sonally appeared duly commissioned and acting, Jerry H to me well known as the persons who executed the foregoing document as County Judge respectively of Washington County, Arkansas, and who stated and acknowledged that th delivered said instrument for the consideration, uses and purposes therein mentioned and s WITNESS my hand and seal on this cZb#1 day of April, 2005. and actin. Notary Public within nto and . ,•ir.- nd : o MY COMMIS Notary Public had so sig -d, executed -nd t forth. Professioal Land Title Company of 41kansas 2713 S.E. I St., Ste 7 Bentonville, AR 72712 479-271-6003 ♦ 479-271-6075(fax) July 25, 2005 City of Fayetteville Fayetteville, AR 72701 RECEIVED JUL 262005 ENGINEERING DIV. Re: Property at: Mountain Inn Parking Deck, Lots 2,16,17,18,19 Blk 28 Original Dear City of Fayetteville: Please find enclosed the following documents: 12. Original Final Title Policy Number: OP6530850 2. Original Warranty Deed Filed: April 22, 2005 @ 11:21:53 AM If you have any questions, please call our office. Sincerely, Final Policy Department 1(.,1�1'iAi nom, ... t Y- s+ •.t ... �, i• -t+rr 1'•y P s as �.. ai at'. I lay ♦ Y { 1 l . (�•• .' tl1i1 I( y Itl ry a t1 iAI Iy.pY i r.S( vrr c��x F +,(�� x.t,�rr 1 7 �a �If f MpF¢•LmTY'Ap M1Y 7 �41r t .t .� ,. ., «'l+: Ee+ r �i�i�•e(aYt1..11XY'h.Xr"1?i1X'(.1 :1X�' ('+t"lXf,•7r. ',r �`..≥r,. 111111. �• pIIIIQ� •,;.: • w i I „I r 1. ✓ _ 1•`r •1 ) 1 � we _ p _ i - . Ilea [ �• . • ♦l 1 E- � 1 � •I Y' fit• ►� COM ,." � IY tire • } 9 L� �. 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Aue 10 11048301 JO SUOISUaw!p Jal3eJego 041 (g)'puel 0144 40 luawSolue Jo 'asn 'Aouednaoo all (!) of 6u!lelal Jo 6uil!q!yold 6u@elnooi '6u!l3!AsoJ (Suoileln60J Jo 'sa3ueulpJo sMel 6u!uoz pue 6u!p fnq of pal!w!l IOU inq 6u!pnloui) uo!1eln09J Ia!U0wwano6 JO GOUeu!pJO 'Mel AuV (e) '£ .Z :Jo uoseaJ Aq asue 43!4M sasuadxa Jo saaJ ,sAaujolle 'Slso3 'abewep Jo SSOI Aed IOU ll!M Auedwoo aqi pue Ao!lod 5141 l0 a6EJaAOO 0111 woJJ papnl3xa Alssaidxa ale sJallew 6u!Mollol 941 3DV83AOO WOW SNOIsn19X3 FATIC-402.M Owners Schedule A COMMERCIAL❑ RESIDENTIAL X CONSTRUCT. WAND NEW HOME SALE❑ RESALE X 2Ne MORTGAGED REFINANCED FORECLOSURE❑ REISSUE? PRIOR POLICY# AMOUNT $ SIMUL. POLICY# AMOUNT FIRST AMERICAN TITLE INSURANCE COMPANY SCHEDULE A Issuing Agent: Professional Land Title Company of Arkansas. 2713 S.E. I St., Ste 7 Bentonville, AR 72712 Issuing Agent # IA20 Agent's File No.: 111-037 Policy Number: OP6530850 Amount: $1,200,000.00 I. DATE OF POLICY: April 22, 2005 @ 11:21:53 AM 2. Name of Insured: City of Fayetteville 3 The estate or interest in the land insured herein is designated as: FEE SIMPLE 4. The instruments creating the estate or the interest in the real estate which is hereby insured are described as follows: Warranty Deed from Stellabella Plaza, L.L.C., an Arkansas Limited Liability Company and Mountain Inn Parking Plaza, L.L.C. to City of Fayetteville, Arkansas, a municipal corporation dated April 20, 2005 and filed on April 22, 2005 @ 11:21:53 AM as Instrument # 2005-00017152 in the records of Washington County, Arkansas. 5. The land referred to in this Policy is in the State of Arkansas, County of Washington described below or, if no description appears below, is the land described in the instrument(s) set forth in item 4. above: Lots 2,18,19, and Part of Lot 17, Block 28, Original Plat of the Town (Now City) of Fayetteville, Washington County, Arkansas. AND, PARKING DECK DESCRIPTION Lot Numbered Sixteen (16) and a Part of Lot Numbered Seventeen (17), in Block Numbered Twenty -Eight (28), of the Original Plat of the Town (Now) City of Fayetteville, Arkansas, being more particularly described as follows: Beginning at the Northwest corner of said Lot Sixteen (16); thence S 8958'07" E, along the North line of said Lots Sixteen (16) and Seventeen (17) 87.06 feet; thence S 0014'25" W, 102.09 feet to a point on the South line of said Lot Seventeen (17); thence N 8958'28" W, 86.48 feet to the Southwest corner of said Lot Sixteen (16); thence N 0005'06" W, 102.10 feet to the Point of Beginning. The above described tract having permanent rights of ingress and egress over and across the following described access easement: PARKING DECK ACCESS DESCRIPTION A part of Lot Numbered Seventeen (17), a Part of Lot Numbered Eighteen (18), and a Part of Lot Numbered Nineteen (19), all in Block Twenty -Eight (28), of the Original Plat of the Town (Now City) of Fayetteville, Arkansas, being more particularly described as follows: Beginning at the Southeast corner of said Lot Nineteen (19); thence N 8958'28" W, along the South line of said Lot Nineteen (19) 24.95 feet to the East Face of an existing building; thence N 0009'41" W along the East face of said building feet; thence N 7013'54" E, along the East face of said building 1.41 feet; thence N 0035'46" W, along the East face of s b ding 6.43 feet; thence S Profess July Professional Lnal L 5, a a of Arkansas Issuing Agent Signing Agents Michael P. Ragsdale, SA20-02 Brian A. Perry, SA20-03 8735'45" W along the East face of said building 1.64 feet; thence N 0308'30" W along the East face of said building 0.70 feet to the Northeast corner of said building; thence N 8953'42" W, 87.99 feet along the North face of said building to the Northwest corner of said building, the same also being the South edge of an existing concrete ramp leading to a parking deck; thence leaving the South edge of said concrete ramp S 0009'15" W, 26.75 feet along the East wall of an entry way to a point on the South line of said Lot Seventeen (17); thence N 8958'28" W along the South line of said Lot Seventeen (17) 5.04 feet to the West wall of said entry way, the same being the East wall of an existing Parking Deck; thence N 0014'25" E, 49.99 feet along the West Wall of said entry way and the East Wall of said Parking Deck to a point on the North Edge of the above mentioned concrete ramp; thence leaving the East wall of said Parking Deck S 8956'13" E, along the North edge of said concrete ramp 50.69 feet; thence S 8951'39" E, along the North edge of said concrete ramp 37.36 feet; thence N 7043'23" E, 26.64 feet to a point on the East line of said Lot Nineteen (19); thence S 0006'52" E, 58.69 feet to the Point of Beginning. July 25, of Arkansas Issuing Signing Agents Michael P. Ragsdale, SA20-02 Brian A. Perry, SA20-03 FATIC-40241 • owners Schedule B C Agent File No.: 111-037 First American Title Insurance Company SCHEDULE B Policy Number FA - OP6530850 OWNERS This policy does not insure against loss or damage by reason of the following: I. Rights or claims of parties in possession and visible easements not shown by public records. 2. Easements, or claims of easements, not shown by the public records. 3. Encroachments, overlaps, boundary line disputes, or other matters which would be disclosed by an accurate survey or inspection of the premises. 4. Any lien, or right to a lien, for services labor or material heretofore or hereafter furnished, imposed by law and not shown by the public records. 5. Community property, dower, curtesy, survivorship, or homestead rights, if any, of any spouse of the insured. 6. Any title or rights asserted by anyone including but not limited to person, corporations, governments or other entities, to tide lands, or lands comprising the shores or bottoms of navigable rivers, lakes bays, ocean or gulf, of lands beyond the line of the harbor or bulkhead lines as established or changed by the United States Government or water rights, if any. 7. Reservations contained in Patent from the United States of America or State where the land described in Schedule A is located. 8. Restrictive Covenants affecting the property described in Schedule A. 9. Any claim, which arises out of the transaction vesting in the insured the estate or interest insured by this policy, by reason of the operation of federal bankruptcy, state insolvency, or similar creditor's rights laws. 10. General and taxes for 2005 and special taxes for 2006 and subsequent years not yet due and payable. 11. Covenants or Restrictions other than city or county ordinances, but deleting any covenant, condition or restriction indicating a preference, limitation or discrimination based on race, color, religion, sex, handicap, familial status, or national origin to the extent such covenants, condition or restrictions violate 42 USC 3604(c). Parcel No. 765-01930-000 Parcel No. 765-01940-000 Parcel No. 765-01940-001tint DEED \\%\�\\\%�����������! IIIII1111IIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIII CORPORATION 9570002 Tvt ! Doc ID: X48 2/2006 at 11.21.63 AM Recotd0d.$'j1. 0 pea' BE IT KNOWN BY THESE PRESENTS: FOS atop co l Quit clerk watt* $tamp0` 00017152 THAT WE, StellaBella Plaza, L.L.C., an Arkansas Limited File C. Liability Company AND Mountain Inn Parking Plaza, L.L.C., an Arkansas Limited Liability Company, hereinafter called GRANTORS, for and in consideration of the sum of One Dollar ($1.00) and other good and valuable consideration, the receipt of which is hereby acknowledged, do hereby grant, bargain, sell and convey unto the City of Fayetteville, Arkansas, a municipal corporation, hereinafter called GRANTEE, and unto Grantee's successors and assigns, the following described land situated in the County of Washington, State of Arkansas, to -wit: Lots Two (2), Sixteen (16), Seventeen (17), Eighteen (18), and Nineteen (19), Block Twenty-eight (28), Original Plat of the Town (now City) of Fayetteville, Washington County, Arkansas. TO HAVE AND TO HOLD the said lands and appurtenances thereunto belon ing unto the said Grantee and Grantee's successors and assigns, forever. And the said Grantors, hereby covenant that theji are lawfully seized of said lands and premises; that the same is unencumbered, and that the Grantors will forever warrant an defend the title to the said lands against all legal claims whatever created by, through, or under Grantors, subject, howev r, to recorded instruments and easements, if any. / f� WITNESS the execution hereof on this ! 1 day of April, 2005. STELLABELLA PLAZA, L.L.C. An Arkansas Limited Liability Co. S dtA tl`IA a c f [Please Print Name & itle] ATTES� �� //7 , C f�Jt,�� / OtJI J..NIL'i �✓l�o`7, /��Id2h°v, [Please Print (dame & Title] ' [Please MOUNTAIN INN PARKING PLAZA, L.L.C. An Arkansas Limited Li bility Co. [Please Print rn Mountain Inn Deed Page 2 of 2 ACKNOWLEDGMENT STATE OF OHIO SS. COUNTY OF CUYAHOGA BE IT REMEMBERED, that on this date, before the undersigned, a duly commission d and acting Notary Public within and for said County and State, personally appeared duly commissioned and acting, Stella Moga, to me well known as the person who executed the foregoing document as the sole member and manager of STE LABELLA PLAZA, L.L.C., An Arkansas Limited Liability Company, and who stated and acknowledged that she had so igned, executed and delivered said instrument for the consideration, uses and purposes therein mentioned and set forth. WITNESS my hand and seal on this 19th day of April, 2005. MY COMMISSION EXPIRES: ACKNOWLEDGMENT STATE OF OHIO COUNTY OF CUYAHOGA PAUL! SINGE Notary Pu My commission BE IT REMEMBERED, that on this date, before the undersigned, a duly commission' and for said County and State, personally appeared duly commissioned and acting, Stella person who executed the foregoing document as the sole member and manager MOUNTAI? and who stated and acknowledged that she had so signed, executed and delivered said instri and purposes therein mentioned and set forth. WITNESS my hand and seal on this 19th day of April, 2005. MY COMMISSION EXPIRES: Notary Public - My commission has ACKNOWLEDGMENT STATE OF OHIO ss. COUNTY OF CUYAHOGA BE IT REMEMBERED, that on this date, before the undersigned, a duly commissi and for said County and State, personally appeared Stella Moga, to me well known as the document, and who stated and acknowledged that she had so signed, executed and consideration, uses and purposes therein mentioned and set forth. WITNESS my hand and seal on this 19th day of April, 2005. MY COMMISSION EXPIRES: Law date. and acting Notary Public within oga, to me well known as the NN PARKING PLAZA, L.L.C., lent for the consideration, uses date. and acting Notary Public within on who executed the foregoing vered said instrument for the PAUL J. SINGERMAN, Attorney At Notary Public - State of Ohio My commission has no expiration Section 147.03 R. C. 9 NAME OF FILE: Resolution No. 210-04 CROSS REFERENCE: Item # Date Document 1 12/02/04 memo to mayor & City Council 2 draft resolution 3 draft resolution 4 Staff Review Form 5 memo to Steve Davis 6 7 8 9 10 11 12 13 14 15 16 NOTES: • City of Fayetteville • Staff Review Form City Council Agenda Items Contracts 21 -Dec -04 City Council Meeting Date Stephen Davis Submitted By to FIS Director Division Action Requir )urse for City expenses Finance & Internal Services Department This resolution provides the mechanism for the City to be reimbursed for expenses associated with developing a TIE. $0.00 Cost of this request Account Number Category/Project Budget I Funds Used to Date Program Category / Project Name Program / Project Category Name $ - General Fund Project Number Remaining Balance Fund Name Budgeted Item Budget Adjustment Attached LJ Depart ent Director City Attorn Chief Administrative Officer Mayor Previous Ordinance or Resolution # /1 —/- Date Original Contract Date: Original Contract Number: Date Received in Mayor's Office 7z/6/dV Date Received in City Clerk's Office l2 Date • /L/Z//O( FAYETTEaILLE 7/ �S St THE CITY OF FAYETTEVILLE, ARKANSAS G�I/ �G✓2)op,narfr 1Y' DEPARTMENTAL CORRESPONDENCE TO: Mayor Dan Coody and Fayetteville City Council FROM: Stephen Davis, Finance & Internal Services Director DATE: December 2, 2004 SUBJECT: TIF Bond Program: Approval of Resolution of Intent to Reimburse Recommendation Staff recommends approval of the resolution of intent to reimburse. Background The Citizens of Arkansas approved, at the General Election in 2000, Amendment 78 to the Arkansas Constitution. Amendment 78 provides, in part, authorization for cities to enter into short-term bond issues and capital lease agreements that are supported by the general revenues of the city. City Councils are authorized to execute these debt instruments without a public vote. The Arkansas Constitution limits the debt to no more than five (5) years and to no more than five (5%) per cent of the assessed value of taxable property within the city. The City of Fayetteville approved a Debt Management Policy on November 5, 2002 (Resolution 173-02) that established the policy and underlying analysis that must be completed prior to initiating any debt agreements. On November 7, 2002 the City of Fayetteville advertised and solicited requests for qualifications (RFQ) for Bond Counsel Services and solicited requests for proposals (RFP) for Underwriter Services and Leasing Services.. The City of Fayetteville Debt Committee (established by Resolution 173-02) received the responses to the request for qualifications and request for proposals in January, 2003. The Debt Committee selected Gordon Wilbourn of Kutak Rock as Bond Counsel, Dennis Hunt of Stephens, Inc and Crews and Associates as Bond Underwriter(s) and Bank of America (BOA) Leasing for leasing services. Agreements with each of these service providers will be developed and submitted to City Council for consideration and approval. Discussion The City has identified numerous geographic areas within the City that appear eligible for tax increment financing (TIF) funding. TIF projects, by their nature, require enhanced analysis prior to the initiation of a bond issue to insure that a revenue stream will exist to amortize any debt issued. City Council is currently being requested to approve contracts with the University of Arkansas to conduct financial feasibility studies related to each individual TIF and Crews and Associates for bond underwriting services. Approval of the Resolution of Intent to Reimburse will enable the City J:\Debt Financing\TIF\TIF Bonds Resolution of Intent To Reimbure.doc to pay for services rendered in developing a TIF project and when TIF bonds are issued, submit invoices to the bond trustee for reimbursement. Budget Impact The City's out-of-pocket cost will be accumulated in the General Fund until a TIF bond issue is completed and then the TIF bond issue will reimburse General Fund. The TIF bond issue will be funded from growth in property taxes paid on property located within the TIF boundary. J:\Debt Financing\TIF\TIF Bonds Resolution of Intent To Reimbure.doc • RESOLUTION NO. A RESOLUTION TO EXPRESS THE CITY'S INTENT TO BE REIMBURSED FOR ITS EXPENSES IN CREATING ANY AND ALL TIF DISTRICTS FROM THE PROCEEDS OF TIF BONDS BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF FAYETTEVILLE, ARKANSAS: Section 1: That the City Council of the City of Fayetteville, Arkansas hereby expresses its intent that the City shall be reimbursed for all of its expenses in creating a TIF district from the proceeds of the TIF bonds issued for that district. PASSED and APPROVED this 21S1 day of December, 2004. ATTEST: By: SONDRA SMITH, City Clerk APPROVED: By: DAN COODY, Mayor '4,4', TIP lord' RESOLUTION NO. A RESOLUTION EXPRESSING THE INTENT OF THE CITY OF FAYETTEVILLE, ARKANSAS TO REIMBURSE CERTAIN EXPENDITURES OF THE CITY PERTAINING TO FINANCING, PLANNING, ACQUISITION AND DEMOLITION IN CONNECTION WITH THE HIGHWAY 71 EAST SQUARE REDEVELOPMENT DISTRICT PROJECT WITH THE PROCEEDS OF AN ISSUE OR ISSUES OF TAX-EXEMPT BONDS; AND STATING OTHER MATTERS PERTAINING THERETO WHEREAS, in order to alleviate blight and encourage development within the City of Fayetteville, Arkansas (the "City"), the City presently intends (i) to acquire certain real property and demolish existing structures thereon, which property is located within the Highway 71 East Square Redevelopment District and consists primarily of the former Mountain Inn property, and (i) to sell such cleared property to a private developer for the purpose of constructing a hotel and meeting facility thereon; and WHEREAS, the City presently intends to finance the costs of acquiring and demolishing such property (the "Project") through the issuance of one or more series of tax-exempt bonds of the City (the "Bonds"); and WHEREAS, the City has determined the need to expend its funds to pay certain costs of the Project prior to the issuance of the Bonds; and WHEREAS, in order to utilize the proceeds of tax-exempt bonds to reimburse original expenditures made by the City with respect to the Project, it is necessary under the Internal Revenue Code of 1986, as amended (the "Code") and U.S. Treasury Regulation Section 1.150-2 that the City make a present declaration of its official intent to make such reimbursement; NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF FAYETTEVILLE, ARKANSAS: Section 1: That the City intends to issue its Bonds in one or more series in aggregate principal amount not to exceed Five Million Dollars ($5,000,000.00) under the Constitution and laws of the State of Arkansas to finance acquisition and demolition costs related to the Project. Section 2: That the City intends to utilize a portion of the proceeds of the Bonds to reimburse itself for certain expenditures relating to the Project made by the City prior to the issuance of the Bonds with respect to financing, planning, acquisition and demolition. It is anticipated that the Project expenditures to be reimbursed will be made from the City's general fund. C n Section 3: That the City intends this resolution to be its declaration of "official intent" under the Code and U.S. Treasury Regulation Section 1.150-2 to reimburse certain original expenditures with respect to the Project. PASSED and APPROVED this 21st day of December, 2004. ATTEST: By: SONDRA SMITH, City Clerk APPROVED: By: ®� DAN COODY, Mayor 2 aye e NS e ARKANSAS I DEPARTMENTAL CORRESPONDENCE To: Steve Davis Finance & Internal Services �p From: Clarice Buffalohead-PearmanC' City Clerk Division Date: January 7, 2005 Re: Res. No. 210-04 City Clerk Division 113 West Mountain Fayetteville, AR 72701 Telephone: (479) 575-8323 Fax: (479) 718-7695 city_clerk@ci.fayetteville.ar.us The City Council approved the above resolution on December 21, 2004. Attached is a copy of the resolution expressing the City's intent to reimburse bonds. I'm sorry for the delay in returning this resolution, I've been out of the office and trying to play catch this week. If anything else is needed please let the clerk's office know. Thanks. /cbp attachments cc: Internal Auditor Parcel No. 765-01938-000 WARRANTY DEED CORPORATION BE IT KNOWN BY THESE PRESENTS: THAT WE, McRoy & McNair, Inc., an Arkansas Corporation, hereinafter called GRANTOR, for and in consideration of the sum -of One Dollar ($1.00) and other good and valuable consideration, the receipt of which is hereby acknowledged, do hereby grant, bargain, sell and convey unto the City of Fayetteville, Arkansas, a municipal corporation, hereinafter called GRANTEE, and unto Grantee's successors. and assigns, the following described land situated in the County of Washington, State of Arkansas, to -wit: Recorded: 04/22/2 0 005aT t 11:22:59 AM Fee Amt: $8.00 Peas I of I Mashlnaton County, AR Betto Stamps Circuit Clerk Fi1a2005-00017155 A strip of the equal and uniform width of one (1) foot off of the west side of Lot Numbered Fifteen (15) and all of Lot Numbered Fourteen (14) in Block Numbered Twenty-eight (28) in the City of Fayetteville, as designated on the original plat of the Town of Fayetteville, now on file in the office of the Circuit Clerk and Ex -Officio Recorder of Washington County, Arkansas. TO HAVE AND TO HOLD. the said lands and appurtenances thereunto belonging unto the said Grantee and Grantee's successors and assigns, forever. And the said Grantors, hereby covenant that they are lawfully seized of said lands and premises; that the same is unencumbered, and that the Grantors will forever warrant and defend the title to the said lands against all legal claims whatever. WITNESS the execution hereof on this _ day of April, 2005. McRoy & McNair, Inc., an Arkansas Corporation a7` lJ' Don oo is S e n Fowler [Please Print Title] [Please Print Title] v ACKN'0WL.EDGMENT STATE OF ARKANSAS ) COUNTY OF f ss. 1 , BE IT REMEMBER D, th t onthis date, before the undersigned, a duly commissioned and acting Notary Public within and for said County and Stat a onalty appeared duly commissi ed a d a ting, Don oftis and Leon Fowler, to me well known as the persons who executed the foregoing document as � and , respectively of McRoy & McNair, Inc., an Arkansas Corporation, and who stated and acknowledged that they had so signed, executed and delivered said instrument for the consideration, uses and purposes therein mentioned and set forth. WITNESS my hand and seal on.this. day of April, ?695. n n MY COMMISSION EXPI A. Settlement Statement U.S. q9partment of Housing -Ir and ljrban Development OMB No. 2502-0265 B. Typo of Loan 1.0 FHA 2.0 FmHA 3.®Conv. Unlns. 4.0 VA 5.0 Cony. Ins. 6. File Number 111-028 7. Loan Number 8. Mortgage Insurance Case Number C. Note: This form is furnished to give you a statement of actual sef�lement costs. Amounts paid to and by the settlement agent are shown. Items marked'(p.o.c)' were paid outside the dosing; they are shown here for Information purposes and are not included in the totals. D. Name and Address of Borrower City of Fayetteville Fayetteville, AR 72701 E. Name and Oddness of Seller McRoy and r cNak Inc 16 E Mountain Street Fayettavllle 'AR 72701 F. Name and Address of Lender CASH G. Pmpery Location - 16 E Mountain Street FayetlevWe, AR 72701 H. SeWement Agent Professional Land Title Company Place of Settlement 2713 S.E. I SL, Ste 7 Bentonw9e, AR 72712 I. Settlement Date 0400)05 DD: J. SUMMARY OF BORROWERS TRANSACTION: K SUMMARY OF SELLERS TRANSACTION: 100. GROSS AMOUNT DUE FROM BORROWER 400. GROSS AMOUNT DUE TO SELLER 101. Contract sales puce 500,000.00 401. Contract sales pica 500,000.00 102. Personal 402. Personal property 103. Sediment charges to borrower (line 1400) 333.00 403. 104, 404. 105. 405. Adjustments for Items paId by caller In advance I Adjustments for Items paid by seller In advance 106. CI/town taxes to I 406. CI /town taxes to 107. County taxes to I 407. County taxes to 108. Assessments to 408. Assessments to 109. 409. 110. 410. 11. 411. 112. 412. 120. GROSS AMOUNT DUE FROM BORROWER 00,333.00 420. GROSS AMOUNT DUE TO SELLER 500,000.00 200. AMOUNTS PAID BY OR IN BEHALF OF BORROWER I 500. REDUCTIONS IN AMOUNT TO SELLER 201. Deposit or earnest money i 501. Excess Deposit (see Insirudbns) 202. Principal amount of new ban(s) 502. Settlement dirges to seller (line 1400) 1,372.75 203. Second Mortgage 503. Second Mortgage 204. 504. Payoff of first mortgage loan 221.47022 Arvest Bank 205. 505. Payoff of second mortgage loan 206. 506. 207. 607. 208. 508. 209. 509. Adjustments for Items unpaid by seller I Ad ustments for Items unpaid by seller 210. CI/town Axes b . 510. G /town taxes to 211. County taxes 01101 to 04/20 I 476.50 511.County taxes 01/01 to 0420 476.50 212. Assessments to 512. Assessments m 213. 513. 214. 514. 2004RE Taxes #765-01938-000 1,581.11 215. 515. 216, 518. 217. 517. 218. 518. 219. 519. 220. TOTAL PAID BY I FOR BORROWER 476.50 520. TOTAL REDUCTION AMOUNT DUE SELLER 224,900.58 300. CASH AT SETTLEMENT FROM OR TO BORROWER 600. CASH AT SETTLEMENT TO OR FROM SELLER 301. Gross amount due from bomlwer (line 120) 500,333.00 601. Gross amount due to sailer (line 420) 500,000.00 302. Less amounts paid b/for borrower line 220) 476.50 602. Less reduction amount due to seller line 520) 224,900.58 303. CASH FROM BORROWER 499,85830 b03. CASH TO SELLER 275,099.42 RESPA, HB 4305.2 - REV. HUDI(3/86) U.S. DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT SETTLEMENT STATEMENT PAGE 2 L. SETTLEMENT CHARGES: File Number 111-028 PAID FROM PAID FROM 700. TOTAL SALES/BROKER'S COMMISSION based on prlci $ = BORROWER'S SELLER'S FUNDS AT FUNDS AT Division of commission(line 700) as follows: SETTLEMENT SETTLEMENT 701. $ to 702. $ to 703. Commission paid at Settlement 704. 800. ITEMS PAYABLE IN CONNECTION WITH LOAN P.O.C. 801. Loan Origination Fee % 802. Loan Discount V. 803. Appraisal Fee to 804. Credit Report to 805. Lenders Inspection Fee to 806. Mt . Ins. ppllcation Fee to 807. to 808. 809. 810. 811. 812. 813. 814. 815. 900. ITEMS REQUIRED BY LENDER TO BE PAID IN ADVANCE 901. Interest from to $ /day 902. Mortgage Insurance Premium to 903. Hazard Insurance Premium yts. to 904. 905. 1000. RESERVES DEPOSITED WITH LENDER FOR 1001. Hazard Insurance no. $ 1 Mo. 1002, Mortgage Insurance mo. @$ / mo. 1003. City pCitypropertytaxes mo. $ /mo. 1004. County pCountypropertytaxes mo. $ - Imo. 1005. Annual Assessments mo. $ / mo. 1006. mo. $ E / mo. 1007. no. $ / mo. 1008. Aegate Reserve for Hazard/Flood Ins, City/CountyCity/County Prop Taxes, Mortgage Ins & Annual Assessments 1100. TITLE CHARGES 1101. Settlement or dosing fee to Pro Land Title 200.00 200.00 1102. Abstrad or title search to ProLand Title 125.00 125.00 1103. Title examination to 1104. Title Insurance binder to 1105. Document r ration to 1106. Note fees to 1107. Attorney's fees to (includes above Item No: 1108. Title Insurance to Pro Land Tilt 1,047.75 includes above Item No: 1109. Lenders coverage 1110. Owner's coverage 500,000.00 -1397.00 Less 25% 1111. 1112. 1113. Releas&Asslgivnent Services Fee 1200. GOVERNMENT RECORDING AND TRANSFER CHARGES 1201, Recordin fees Deed $ 8.00 ; Mo a e $ ; Releases $ 8.00 1202. CI /coon /stems Deed $ : Mortgage $ 1203. State tax/stam Deed $ ; Mortgage $ 1204. - 1205. 1300. ADDITIONAL SETTLEMENT CHARGES 1301. Survey to 1302. Pest inspection to 1303. 1304. 1305. 1306. 1307. 1308. 1400. TOTAL SETTLEMENT CHARGES (enter on lines 103 and 502, Sections J and K) 333.00 1,372.75 I RESPA, HB 4305.2- REV. HUD1(3/86) File No: 111-028 HUD; I CERTIFICATION I have carefully reviewed the IIUD-1 Settlement Statement and to the best of my knowledge and belief, it is a true and accurate statement of all receipts and disbursements made on my account or by me in this transaction. I further certify that I'have received a copy of the HUD -1 Settlement Statement. SELLER'S AND/OR PURCHASER'S STATEMENT: Seller's and Purchaser's signature hereon acknowledges his/their approval of tax proration and signifies their understanding that prorations were based on taxes for the proceeding year, or estimates for the current year, and in the event of any change for the current year, all necessary adjustments must be made between Seller and Purchaser; likewise any default in delinquent taxes!will be reimbursed to Title Company by the Seller. Title Company, in its capacity as Escri receives in this transaction in any fins institution may provide Title Company a separate entity which, if affiliated reasonable and proper compensation the by any party involved in this transaction. but not for aforesaid accounting and am or other charges on the earnest moneys it at any time. Sellers and Purchasers t money in financial institutions with whic and further consent to the retention b3 (including advantageous interest rates o such financial institutions by reason of w Agent, is and has been authorized to deposit all funds it ecial institution, whether affiliated or not. Such financial :omputer accounting and audit services directly or through ith Title Company, may charge the financial institution efore and retain any profits therefrom. Any escrow fees paid shall only be for check writing and input to the computers, it services. Title Company shall not be liable for any interest ad shall be under no duty to investor reinvest funds held by :reby acknowledge and consent to the deposit of the escrow iTitle Company has or may have other banking relationships Title Company and/or its affiliates of any and all benefits loans) Title Company and/or its affiliates may receive from ieir maintenance of said escrow accounts. The parties have read the above sentences, recognize that the recitations herein are material, agree to same and recognize Title Company is relying on the same. McNair Inc, eon P. Fowler, Secretary/Treasurer BORROWERS _ . FILER To the best of my knowledge the HUD -1 Settlement statement which I have prepared is a true and accurate account of the funds which were received and have been or will be disbursed by the undersigned as part of the settlement of this transaction. Company Settlement Date: April 20, 2005 WARNING: It is a crime to knowingly make false statements to the United States on this or any other similar form Penalties upon conviction can include a fine and imprisonment. For detail see: Title 18: U.S. Code Section 1001 and Section 1010. File No: 111-028 NOTICE AND WAIVER OF OWNER'S TITLE INSURANCE TO: City of Fayetteville DATE: April 20, 2005 BUYING PROPERTY IDENTIFIED AS: 16 E Mountain Street Fayetteville, AR 72701 Pursuant to the Regulationslof the Department of Commerce and Insurance of the State of Arkansas notice is hereby given!that MORTGAGEE'S TITLE INSURANCE policy is to be issued to your mortgage lender, that such policy DOES NOT AFFORD TITLE INSURANCE PROTECTION TO YOU IN THE EVENT OF A DEFECT OR CLAIM OF DEFECT IN TITLE TO THE REAL ESTATE WHICH YOU ARE ACQUIRING (SUCH AS UNPAID BILLS FOR LABOR AND MATERIAL, FORGERY, MISSING HEIRS OR TAX LIENS), and that an owner's title insurance policy in your favor for the amount of your purchase price (or for the amount of your purchase price plus the cost of any improvements which you anticipate making) may be purchased. Departmental Regulations require that you sign the statement below if you do not wish to purchase this protection. This is to certify that we have received the foregoing notice and waive our right to purchase an owner's title insurance policy for our protection. We acknowledge that Professional Land Title Company and shall have no responsibility to us for the status of the title to the real estate which we are acquiring. DATE: April 20, 2005 By: CLOSER'S CERTIFICATE As evidence of compliance with Departmental Rule 0780-1-12-.10, Department of Commerce Insurance, State of Arkansas, I certify to the above title company that the foregoing NOTICE AND WAIVER was read by, the Mortgagor(s) in my presence and that the WAIVER was signed by the Mortgagor(s) io my presence.. File No: 111-028 "OWNER'S AFFIDAVIT" AFFIDAVIT AND INDEMNITY AGREEMENT AS TO LEASES, CONTRACTS, FIXTURES, ENCUMBRANCES, MECHANICS' LIENS, ETC. STATE OF: ARKANSAS COUNTY OF: Washington Before me, the undersigned Notary fliblic in and for said County and State, personally appeared , of McRoy and McNair Inc.,, known tome and being fist duly sworn, deposes and says: 1. That it owns the real property n Washington County, AR; known municipally or referenced as follows: To wit: 16 E Mountain Street, Fayetteville, AR 72701 Lot 14, WI ft. Lot 15'Btk 28 Fay. Original 2. That said owner is in possession of said property, and the following is a list of all tenants with rental terms: NAME DATE FROM DATE TO NONE 3. That all indebtedness due anyone for labor, materials, or service which might be liens on said property are fully paid. 4. That no security interest under the Uniform Commercial Code has been perfected against the improvements. 5. That there are no judgments, pending litigation, executions or attachments in or from any court affecting said property of said owner(s). 6. That no bankruptcy proceeding in any Federal Court has been filed against or by any owner of said property. There is no outstanding contract of sale, conveyance or encumbrance affecting said property, except: NONE 7. That all persons who have executed or will execute instruments conveying or encumbering said property are at least 18 years old and arc free from legal disability. 8. That the undersigned makes this statement for the express purposes of inducing: FIRST AMERICAN TITLE INSURANCE CORPORATION to insure title to said property to be free from adverse claims or liens not otherwise herein stated, and of enabling said owner(s) to receive the consideration for sale, lease or mortgage of said property. Affiant guarantees and warrants the statements of fact herein, which shall be construed as a continual contractual obligation in favor of said companies. 9. That in consideration of the issuance of title insurance by said companies as aforesaid, the undersigned agrees to indemnify and hold harmless the above indicated title insurance company against all loss or expense on account of any matter or thing omitted from the foregoing factual statement, including expense of enforcing this agreement. I0.That undersigned's United States Taxpayer Identification Number is and my United States address is 16 E Mountain Street, Fayetteville, AR 72701 11. That undersigned is not a "foreign person" as the term is defined in Section 1445 of the Internal Revenue Code. By: Don R. Loftis, P. Fowler, By. Subscribed and sworn to before me this the 20th day of Notary Public My commission expires: Date: April 20, 2005 Re: 16 E Mountain Street, Fayetteville, AR 72701 I/We, the undersigned, do hereby state that I/we understand that the taxes for the year 2004 are due in March 2005, are not yet payable and the amount collected at closing has not been certified by the Tax Collector. Therefore, should the amount increase Uwe will be responsible for reimbursing the buyer of any shortages, within 10 calendar days of notification Should the amount decrease Uwe will be responsible for refunding the seller the difference within 10 calender days of notification. Signed and sealed this _ day of 2005. jQl Al t _ 4lrA a 0,T 'V..ri. State of Arkansas County of Washington SIGNED AND SWORN before me this day of Agents File No. 111.028 EXHIBIT A - LEGAL A strip of the equal and uniform width of One ( ) foot off of the West side of Lot Numbered Fifteen (15) and all of Lot Numbered Fourteen 4) in Block Twenty-eight (28) in the City of Fayetteville, as designated on the original plat ot the Town of Fayetteville, now on file in the office of the Circuit Clerk and Ex -Officio Recorder of Washington County, Arkansas. DATA SHEET REAL ESTATE 1099-S THIS FORM MUST BE FILLED OUT BY THE TRANSFEROR/SELLOR TILE INFORMATION CONTAINED ON THIS FORM IS IMPORTANT TAX INFORMATION AND IS BEING FURNISHED TO THE INTERNAL REVENUE SERVICE As the Transferor/Seller YOU are required by law to provide your correct taxpayer Identification number. If your correct taxpayer identification number is not provided, you may be subject to civil or criminal penalties imposed by law. Under penalties of perjury, I certify that the Taxpayer Identification Number shown on this statement is the correct Taxpayer Identification Number. Also, I understand that IT IS THE RESPONSIBILITY of the Transferor/Seller to report any and all proceeds received from this sale. SS# or Tax ID SS# or Tax ID Only one Form 1099 is required if the transferor is husband and wife or a partnership. FOR MULTIPLE TRANSFERORS: A SEPARATE FORM 1099-S MUST BE COMPLETED FOR EACH TRANSFEROR RECEIVING PROCEEDS FROM SALE OF REAL ESTATE *************************************************************************** In order to insure filing, it is extremely important that you provide us with the following information. If incorrect information is provided Professional Land Title Company of Arkansas, Inc. is responsible for the misfiling of this report. PLEASE PRINT: TRANSFEROR NAME 1: TRANSFEROR NAME 2: ADDRESS WHERE YOU WISH FOR 1099 TO BE MAILED: Street: City: PLEASE CONSULT YOUR CPA FOR INFORMATION REGARDING THE FILING OF THIS REAL ESTATE SALE TO IRS. ** ***** * ***************************** ** * ******* * * ********** ** *************** ** DO NOT FILL OUT THIS SECTION Description of Property: 16 E Mountain Street Property Address of 16 E Mountain Street, Fayettevile,Arkansas72701 Contract Sales Price: $500,000.00 Net proceeds: Closing Date: April 20, 2005 Date: April 20, 2005File No. CLOSING AGENT INFORMATION (to be completed by closing agent) Professional Land Title Company of AR, Inc. S09 West 3rd Street Wale Rock, Arkansas 72201 (501)661-1701 CHOICE OF ATTORNEY (Broker / Lender) has informed me (us) that I (we) have the option of choosing (legal counsel / title company) to close my mortgage loan. I (we) understand that said legal counsel shall represent the Broker/Lender at the closing. ) I (We) select: Attorney / Tide Company ( ) I (We) having been i (We) have reviewed the E title companies, I (We) have Attorney / Title ed of this option and having no preference, I / LegOi is list of approved closing attorneys / x ) I (We) acknowledge that I (We) have been giving the opportunity to select a rney / title company to close my (our) mortgage loan. I (We) have no preference regarding closing attorney / title company and choose not to select one. App 'cant Date tness Date A - Y Co -Applicant Date Witness Date ?3�PRD LAND TITLE ��n• I Professional Land Trtie Company 70 North College Avenue, Suite 1 Fayetteville, AR 72701 PAT 479 113-5659 479-443-5692 fax 479-966-0703 mobile Blasingame 877-251-9048 toll free Closing Agent pblasingameC prolandtide.com www.pmlanddde.00rn Vt4vI C OMB No. 2502-0265 I A. Settlement Statement U.S. Department of Housing and Urban Development B. Type of Loan i' 1.❑ FHA 2.0 FmHA 3.2Conv. Unins. 4.❑ VA 5.0 Cony. Ins. 6, File Number 111-028 7. Loan Number 8. Mortgage Insurance Case Number Mlr1� C. Note: This form is furnished to give you a statement of actual settlement costs. Amounts paid to and by the settlement agent are shown. Items marked "(p.o.c.)" were paid outside the closing; they are shown here for information purposes and are not included In the totals. Y' D. Name and Address of Borrower City of Fayetteville Fayetteville, AR 72701 E. Name and Address of Seller McRoy and McNair Inc. 16 E Mountain Street Fayetteville, AR 72701 F. Name and Address of Lender AF6 CASH G. Property Location 16 E Mountain Street Fayetteville, AR 72701 H. Settlement Agent Professional Land Title Company Place of Settlement 2713 S.E. I St., Ste 7 Bentonville, AR 72712 I. Settlement Date 04/20/05 DD: J. SUMMARY OF BORROWER'S TRANSACTION: K. SUMMARY OF SELLER'S TRANSACTION: 100. GROSS AMOUNT DUE FROM BORROWER 400. GROSS AMOUNT DUE TO SELLER 101. Contract sales price 500,000.00 401. Contract sales price 500,000.00 102. Personal property402. Personal property 103. Settlement charges to borrower line 1400) 333.00 403. 104. 404. 105. 405. Adjustments for Items paid by seller In advance Adjustments for items paid by seller In advance 106. City/town taxes to 406. City/town taxes to 107. County taxes to 407. County taxes to 108. Assessments to 408. Assessments to 109. 409. 110. 410. 111. 411. 112. 412. 120. GROSS AMOUNT DUE FROM BORROWER 500,333.00 420. GROSS AMOUNT DUE TO SELLER 500,000.00 200. AMOUNTS PAID BY OR IN BEHALF OF BORROWER 500. REDUCTIONS IN AMOUNT TO SELLER 201. Deposit or earnest money 501. Excess Deposit (see instructions) 202. Principal amount of new loan(s) 502. Settlement charges to seller (line 1400) 1,372.75 203. Second Mortgage 503. Second Mortgage 204. 504. Payoff of first mortgage loan 221,470.22 Arvest Bank 205. 505. Payoff of second mortgage loan 206. 506. 207. 507. 208. 508. 209. 509. Adjustments for items unpaid by seller Adjustments for items unpaid by seller 210. City/town taxes to 510. City/town taxes to 211. County taxes 01/01 to 04/20 476.50 511. County taxes 01/01 to 04/20 476.50 212. Assessments to 512. Assessments to 213. 513. 214. 514. 2004 RE Taxes #765-01938-000 1,581.11 215. 515. 216. 516. 217. 517. 218. 518. 219. 519. 220. TOTAL PAID BY I FOR BORROWER 476.50 520. TOTAL REDUCTION AMOUNT DUE SELLER 224,900.58 300. CASH AT SETTLEMENT FROM OR TO BORROWER 600. CASH AT SETTLEMENT TO OR FROM SELLER 301. Gross amount due from borrower (line 120) 500,333.00 601. Gross amount due to seller (line 420) 500,000.00 302. Less amounts paid by/for borrower (line 220) 476.50 602. Less reduction amount due to seller line 520 224,900.58 303. CASH FROM BORROWER . 499,856.50 603. CASH TO SELLER 275,099.42 RESPA, MB 4305.2 - REV. SETTLEMENT STATEMENT PAGE 2 U.S. DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT L. SETTLEMENT CHARGES: File Number: 111-028 PAID FROM BORROWER'S FUNDS AT SETTLEMENT PAID FROM SELLEA FUNDS AT SETTLEMENT 700. TOTAL SALES/BROKER'S COMMISSION based on price $ = Division of commission (line 700) as follows: 701. $ to 702. $ to 703. Commission paid at Settlement 704. 800. ITEMS PAYABLE IN CONNECTION WITH LOAN P.O.C. 801. Loan Origination Fee 802. Loan Discount 803. Appraisal Fee to 804. Credit Report to 805. Lender's Inspection Fee to 806. Mtg. Ins. Application Fee to 807. to 808. 809. 810. 811. 812. 813. 814. 815. 900. ITEMS REQUIRED BY LENDER TO BE PAID IN ADVANCE 901. Interest from to $ /da 902. Mortgage Insurance Premium to 903. Hazard Insurance Premium yrs. to 904. 905. 1000. RESERVES DEPOSITED WITH LENDER FOR 1001. Hazard Insurance mo. $ / mo. 1002. Mortgage Insurance mo. @$ / mo. 1003. City roe taxes mo. @$ / mo. 1004. County roe taxes mo. @$ / mo. 1005. Annual Assessments mo. $ / mo. 1006. mo. @$ / mo. 1007. mo. $ / mo. 1008. Aggregate Reserve for Hazard/Flood Ins, City/CountyCity/County Prop Taxes, Mortgage Ins & Annual Assessments 1100. TITLE CHARGES 1101. Settlement or closing fee to Pro Land Title 200.00 200.00 1102. Abstract or title search to Pro Land Title 125.00 125.00 1103. Title examination to 1104. Title insurance binder to 1105. Document preparation to 1106. Notary fees to 1107. Attorney's fees to includes above item No: 1108. Title insurance to Pro Land Title 1,047.75 (includes above item No: 1109. Lenders coverage 1110. Owner's coverage 500,000.00 - 1397.00 Less 25% 1111. 1112. 1113. Release/Assignment Services Fee 1200. GOVERNMENT RECORDING AND TRANSFER CHARGES 1201. Recording fees Deed $ 8.00 ; Mortgage $ ; Releases $ 8.00 1202. City/county/stamps Deed $ ; Mortgage $ 1203. State tax/stamps Deed $ ; Mortgage $ 1204. - 1205. 1300. ADDITIONAL SETTLEMENT CHARGES 1301. Survey to 1302. Pest inspection to 1303. 1304. 1305. 1306. 1307. 1308. 1400. TOTAL SETTLEMENT CHARGES (enter on lines 103 and 502, Sections J and K) 333.00 1,372.75 RESPA, NB 4305.2 - REV. HUD1(3/86) File No: 111-028 HUD -1 CERTIFICATION I have carefully reviewed the HUD -1 Settlement Statement and to the best of my knowledge and belief, it is a true and accurate statement of all receipts and disbursements made on my account or by me in this transaction. I further certify that I have received a copy of the HUD -1 Settlement Statement. SELLER'S AND/OR PURCHASER'S STATEMENT: Seller's and Purchaser's signature hereon acknowledges his/their approval of tax prorations and signifies their understanding that prorations were based on taxes for the proceeding year, or estimates for the current year, and in the event of any change for the current year, all necessary adjustments must be made between Seller and Purchaser; likewise any default in delinquent taxes will be reimbursed to Title Company by the Seller. Title Company, in its capacity as Escrow Agent, is and has been authorized to deposit all funds it receives in this transaction in any financial institution, whether affiliated or not. Such financial institution may provide Title Company computer accounting and audit services directly or through a separate entity which, if affiliated with Title Company, may charge the financial institution reasonable and proper compensation therefore and retain any profits therefrom. Any escrow fees paid by any party involved in this transaction shall only be for check writing and input to the computers, but not for aforesaid accounting and audit services. Title Company shall not be liable for any interest or other charges on the earnest money and shall be under no duty to invest or reinvest funds held by it at any time. Sellers and Purchasers hereby acknowledge and consent to the deposit of the escrow money in financial institutions with which Title Company has or may have other banking relationships and further consent to the retention by Title Company and/or its affiliates of any and all benefits (including advantageous interest rates on loans) Title Company and/or its affiliates may receive from such financial institutions by reason of their maintenance of said escrow accounts. The parties have read the above sentences, recognize that the recitations herein are material, agree to same and recognize Title Company is relying on the same. City of Fayetteville McRoy and McNair Inc, Don R. Loftis, President Leon P. Fowler, Secretary/Treasurer BORROWERS SELLER To the best of my knowledge the HUD -1 Settlement statement which I have prepared is a true and accurate account of the funds which were received and have been or will be disbursed by the undersigned as part of the settlement of this transaction. Professional Land Title Company By: Settlement Agent Date: April 20, 2005 WARNING: It is a crime to knowingly make false statements to the United States on this or any other similar form. Penalties upon conviction can include a fine and imprisonment. For detail see: Title 18: U.S. Code Section 1001 and Section 1010. File No: 111-028 "OWNER'S AFFIDAVIT" AFFIDAVIT AND INDEMNITY AGREEMENT AS TO LEASES, CONTRACTS, FIXTURES, ENCUMBRANCES, MECHANICS' LIENS, ETC. STATE OF: ARKANSAS COUNTY OF: Washington Before me, the undersigned Notary Public in and for said County and State, personally appeared , of McRoy and McNair Inc.,, known to me and being first duly sworn, deposes and says: 1. That it owns the real property in Washington County, AR; known municipally or referenced as follows: To wit: 16 E Mountain Street , Fayetteville, AR 72701 Lot 14, W 1 ft. Lot 15 Blk 28 Fay. Original 2. That said owner is in possession of said property, and the following is a list of all tenants with rental terms: NAME DATE FROM DATE TO NONE 3. That all indebtedness due anyone for labor, materials, or service which might be liens on said property are fully paid. 4. That no security interest under the Uniform Commercial Code has been perfected against the improvements. 5. That there are no judgments, pending litigation, executions or attachments in or from any court affecting said property of said owner(s). 6. That no bankruptcy proceeding in any Federal Court has been filed against or by any owner of said property. There is no outstanding contract of sale, conveyance or encumbrance affecting said property, except: NONE 7. That all persons who have executed or will execute instruments conveying or encumbering said property are at least 18 years old and are free from legal disability. 8. That the undersigned makes this statement for the express purposes of inducing: FIRST AMERICAN TITLE INSURANCE CORPORATION to insure title to said property to be free from adverse claims or liens not otherwise herein stated, and of enabling said owner(s) to receive the consideration for sale, lease or mortgage of said property. Affrant guarantees and warrants the statements of fact herein, which shall be construed as a continual contractual obligation in favor of said companies. 9. That in consideration of the issuance of title insurance by said companies as aforesaid, the undersigned agrees to indemnify and hold harmless the above indicated title insurance company against all loss or expense on account of any matter or thing omitted from the foregoing factual statement, including expense of enforcing this agreement. 10.That undersigned's United States Taxpayer Identification Number is and my United States address is 16 E Mountain Street , Fayetteville, AR 72701 11. That undersigned is not a "foreign person" as the term is defined in Section 1445 of the Internal Revenue Code. McRoy and McNair, Inc. By: Don R. Loftis, President Leon P. Fowler, Secretary/Treasurer By: Subscribed and sworn to before me this the 20th day of April, 2005. Notary Public My commission expires: File No: 111-028 NOTICE AND WAIVER OF OWNER'S TITLE INSURANCE TO: City of Fayetteville DATE: April 20, 2005 BUYING PROPERTY IDENTIFIED AS: 16 E Mountain Street Fayetteville, AR 72701 Pursuant to the Regulations of the Department of Commerce and Insurance of the State of Arkansas notice is hereby given that MORTGAGEE'S TITLE INSURANCE policy is to be issued to your mortgage lender, that such policy DOES NOT AFFORD TITLE INSURANCE PROTECTION TO YOU IN THE EVENT OF A DEFECT OR CLAIM OF DEFECT IN TITLE TO THE REAL ESTATE WHICH YOU ARE ACQUIRING (SUCH AS UNPAID BILLS FOR LABOR AND MATERIAL, FORGERY, MISSING HEIRS OR TAX LIENS), and that an owner's title insurance policy in your favor for the amount of your purchase price (or for the amount of your purchase price plus the cost of any improvements which you anticipate making) may be purchased. Departmental Regulations require that you sign the statement below if you do not wish to purchase this protection. This is to certify that we have received the foregoing notice and waive our right to purchase an owner's title insurance policy for our protection. We acknowledge that Professional Land Title Company and shall have no responsibility to us for the status of the title to the real estate which we are acquiring. City of Fayetteville DATE: April 20, 2005 By: By: CLOSER'S CERTIFICATE As evidence of compliance with Departmental Rule 0780-1-12-.10, Department of Commerce Insurance, State of Arkansas, I certify to the above title company that the foregoing NOTICE AND WAIVER was read by the Mortgagor(s) in my presence and that the WAIVER was signed by the Mortgagor(s) in my presence.. Professional Land Title Company Closing Agent Date: April 20, 2005 Re: 16 E Mountain Street, Fayetteville, AR 72701 I/We, the undersigned, do hereby state that I/we understand that the taxes for the year 2004 are due in March 2005, are not yet payable and the amount collected at closing has not been certified by the Tax Collector. Therefore, should the amount increase Uwe will be responsible for reimbursing the buyer of any shortages, within 10 calendar days of notification Should the amount decrease I/we will be responsible for refunding the seller the difference within 10 calender days of notification. Signed and sealed this day of , 2005. City of Fayetteville McRoy and McNair Inc. Don R. Loftis, President Leon P. Fowler, Sec/Treasurer State of Arkansas County of Washington SIGNED AND SWORN before me this day of , 2005. Notary Public My Commission Expires: DATA SHEET REAL ESTATE 1099-S THIS FORM MUST BE FILLED OUT BY THE TRANSFEROR/SELLOR THE INFORMATION CONTAINED ON THIS FORM IS IMPORTANT TAX INFORMATION AND IS BEING FURNISHED TO THE INTERNAL REVENUE SERVICE As the Transferor/Seller YOU are required by law to provide your correct taxpayer identification number. If your correct taxpayer identification number is not provided, you may be subject to civil or criminal penalties imposed by law. Under penalties of perjury, I certify that the Taxpayer Identification Number shown on this statement is the correct Taxpayer Identification Number. Also, I understand that IT IS THE RESPONSIBILITY of the Transferor/Seller to report any and all proceeds received from this sale. McRoy and McNair Inc. Don R. Loftis, President SS# or Tax ID Leon P. Fowler, See/Treasurer SS# or Tax ID Only one Form 1099 is required if the transferor is husband and wife or a partnership. FOR MULTIPLE TRANSFERORS: A SEPARATE FORM 1099-S MUST BE COMPLETED FOR EACH TRANSFEROR RECEIVING PROCEEDS FROM SALE OF REAL ESTATE In order to insure filing, it is extremely important that you provide us with the following information. If incorrect information is provided Professional Land Title Company of Arkansas, Inc. is responsible for the misfiling of this report. PLEASE PRINT: TRANSFEROR NAME 1: TRANSFEROR NAME 2: ADDRESS WHERE YOU WISH FOR 1099 TO BE MAILED: Street: City: PLEASE CONSULT YOUR CPA FOR INFORMATION REGARDING THE FILING OF THIS REAL ESTATE SALE TO IRS. ****************************************************************************** DO NOT FILL OUT THIS SECTION Description of Property: 16 E Mountain Street Property Address of 16 E Mountain Street, Fayetteville, Arkansas 72701 Contract Sales Price: $500,000.00 Net proceeds: Closing Date: April 20, 2005 Date: April 20, 2005File No. CLOSING AGENT INFORMATION (to be completed by closing agent) Professional Land Title Company of AR, Inc. 809 West 3rd Street Little Rock, Arkansas 72201 (501)661-1701 Agents File No. 111-028 EXHIBIT A - LEGAL DESCRIPTION A strip of the equal and uniform width of One (1) foot off of the West side of Lot Numbered Fifteen (15) and all of Lot Numbered Fourteen (14) in Block Twenty-eight (28) in the City of Fayetteville, as designated on the original plat of the Town of Fayetteville, now on file in the office of the Circuit Clerk and Ex -Officio Recorder of Washington County, Arkansas. CHOICE OF ATTORNEY (Broker / Lender) has informed me (us) that I (we) have the option of choosing (legal counsel / title company) to close my mortgage loan. I (we) understand that said legal counsel shall represent the Broker/Lender at the closing. ( ) I (We) select: Attorney / Title Company ( ) I (We) having been informed of this option and having no preference, I (We) have reviewed the Broker / Lender's list of approved closing attorneys / title companies, I (We) have selected: Attorney / Title Company ( ) I (We) acknowledge that I (We) have been giving the opportunity to select an attorney / title company to close my (our) mortgage loan. I (We) have no preference regarding closing attorney / title company and choose not to select one. Applicant Date Witness Date Co -Applicant Date Witness Date Parcel No. 765-01930-000 Parcel No. 765-01940-000 Parcel No. 765-01940-001 WARRANTY DEED CORPORATION BE IT KNOWN BY THESE PRESENTS: THAT WE, StellaBella Plaza, L.L.C., an Arkansas Limited File Liability Company AND Mountain Inn Parking Plaza, L.L.C., an Arkansas Limited Liability Company, hereinafter called GRANTORS, for and in consideration of the sum of One Dollar ($1.00) and other good and valuable consideration, the receipt of which is hereby acknowledged, do hereby grant, bargain, sell and convey unto the City of Fayetteville, Arkansas, a municipal corporation, hereinafter called GRANTEE, and unto Grantee's successors and assigns, the following described land situated in the County of Washington, State of Arkansas, to -wit: PAM 9710/65 1" A3 ;)8409670002 Type: REL /22/2005 at 11.21.53 AM u)/e2.1a6rl t.00 pace 1 of 2 5 Circuit Clerk 15-00017152 Lots Two (2), Sixteen (16), Seventeen (17), Eighteen (18), and Nineteen (19), Block Twenty-eight (28), Original Plat of the Town (now City) of Fayetteville, Washington County, Arkansas. TO HAVE AND TO HOLD the said lands and appurtenances thereunto belonging unto the said Grantee and Grantee's successors and assigns, forever. And the said Grantors, hereby covenant that they are lawfully seized of said lands and premises; that the same is unencumbered, and that the Grantors will forever warrant and defend the title to the said lands against all legal claims whatever created by, through, or under Grantors, subject, however, to recorded instruments and easements, if any. t�. WITNESS the execution hereof on this / 9 day of April, 2005. STELLABELLA PLAZA, L.L.C. An Arkansas Limited Liability Co. c .i' 1' 103A mt 16r [Please Print Na &TTitle] ATTES . Cz2 [Please Print tme & Tile] MOUNTAIN INN PARKING PLAZA, L.L.C. An Arkansas Limited Liability Co. ATTES [Please PrintName & Title] Mountain Inn Deed Page 2 of 2 ACKNOWLEDGMENT STATE OF OHIO ss. COUNTY OF CUYAHOGA BE IT REMEMBERED, that on this date, before the undersigned, a duly commissioned and acting Notary Public within and for said County and State, personally appeared duly commissioned and acting, Stella Moga, to me well known as the person who executed the foregoing document as the sole member and manager of STELLABELLA PLAZA, L.L.C., An Arkansas Limited Liability Company, and who stated and acknowledged that she had so signed, executed and delivered said instrument for the consideration, uses and purposes therein mentioned and set forth. WITNESS my hand and seal on this 19th day of April, 2005. MY COMMISSION EXPIRES: Notary Public PAUL J. SINGERMAN, Attorney At Lit Notary Public - State of Ohio My commission has no expiration date. ACKNOWLEDGMENT STATE OF OHIO ss. COUNTY OF CUYAHOGA BE IT REMEMBERED, that on this date, before the undersigned, a duly commissioned and acting Notary Public within and for said County and State, personally appeared duly commissioned and acting, Stella Moga, to me well known as the person who executed the foregoing document as the sole member and manager MOUNTAIN INN PARKING PLAZA, L.L.C., and who stated and acknowledged that she had so signed, executed and delivered said instrument for the consideration, uses and purposes therein mentioned and set forth. WITNESS my hand and seal on this 19th day of April, 2005. MY COMMISSION EXPIRES: Notary Public - State of Ohio My commission has no expiration date. ACKNOWLEDGMENT STATE OF OHIO ss. COUNTY OF CUYAHOGA BE IT REMEMBERED, that on this date, before the undersigned, a duly commissioned and acting Notary Public within and for said County and State, personally appeared Stella Moga, to me well known as the person who executed the foregoing document, and who stated and acknowledged that she had so signed, executed and delivered said instrument for the consideration, uses and purposes therein mentioned and set forth. WITNESS my hand and seal on this 19th day of April, 2005 MY COMMISSION EXPIRES: Notary Public PAUL J. SINGERMAN, Attorney At Law Notary Public - State of Ohio My commission has no expiration date. Section 147.03 R. C. 04/19/2005 13:30 FTP userl ®005/013 A. Settlement Statement U.B. Deparmxnt atHOwtog and Urban Development air OMB No. 2502-0265 B. Type of Loan 1.0 FHA 2.0 FmHA 3.Conv. Unw. 4.O VA 5.0 Caw. Ins. 6. Ft NumSM 111-037 7. Loan Nwnber 6. Matpape Inalnarroe Case Number C. Note: THs lien Is f nishod to give you a slatemml of actial setdsment owe. Nnounls paid to and by the iMtlment agent am shoat. Items marked 'fpo.o.Y wet, paid oubld The doain0. fly we shown hen for Infvmretion pupoaw end em not Included In the totals. D. Name and Address of Borrows City of Faynvile FeystwMo. AR 72701 E. Name oho Address Of Sevcr O.T. TrarMler 6 Exohwtps 4 ace so00nvwdsbr M Sta4aM6a Plaza U. well MaMaln Inn Putbg Rau LLC 341 Enlelpnse Parfny. Suss 200 wsrdMeed, ONO 44132 F. Name end Address of Leader CASH 0. Property Loobon Momnal Inn Plating Doak Lon 2.16,17.18.19 6a 28 Original H. SeWmentAgent .. Professional 1.4 Ti's Conpany Place of Stateroom 2713 SE 1 St, Sle 7 Barden MS, AR 72112 L Sewemsnl gets 0412003 DD: J. SUMMARY OF BORROWER'S TRANSACTION: K. SUMMARY OF SELLERS TRANSACTION: 100. GROSS AMOUNT DUE FROM BORROWER 40. GROSS AMOUNT DUE TO SELLER 101. Cannot sales plc. 1200.000.00 401. ConDwt ales Kc_____________ 1,000.00 102. Personal 402. Pawmal 103. Ssnmmt thve. to bonawr br 140 1.e81.00 403. 104. 404. 105. 405. M usbwnts for Barns pal4 by seller In advanceAdjustments for Roma paid by nutsrIn advance 106. CltvVb.vn taxes to 406. atynov.ii taaa to 107. Coun taxes b 407. Camty taxes to 196. Assasmanls to 406. Assessments m 100. 409. 110. _ 410. 111. 411. ._- 112. 412. 120. GROSS AMOUNT DUE FROM BORROWER 1201 I.00 420. GROSS AMOUNT DUE TO SELLER 1 00 .00 200. AMOUNTS PAID BY OR IN BEHALF OF BORROWER 600. REDUCTIONS IN AMOUNT TO SELLER 201. Deposit or earnest mm 501. Excess Deposit (in Instructors 202. Principal mount of new ban(s) 502. S.Nemem deign to sell w 1400) 29.105.98 203. Second Map7age 60.7. Second 204. 604. Payoff of Post mortgages bon 206. 505. Payoff of ascots motlga9. ben 206. 500. Tax Defined Money 1,133.305.01 207. 607. 206. 509. 200. 609. M uatment for Name unpaid by seller A ustmmts for Issme un eltl stir 210.p Aown taxes 510.G /town taxes to 211. loxes OI/01 W04120 6492.70 511. taxes 01101 to 04120 8.492.79 212. Aeseamm to 512.Aseeaamenb- b 213. 513.2003 RE Taxes W76S01040000 6 24 214. 514, 2004 RE Taxis S7SL01040000 6 1p 215. 615.2003 RE Timm #76601930000 ',U2.32 216. 516.2004 RE Taxm*763-01044000 4042.49 217. 517.2002-2003 RE Tons 076541040.001 6 1.05 218. 510.2004 RE Taus #70601940001 2,JU.68 210. 619. 220. TOTAL PAID DV? FOR BORROWER 402-7D 620. TOTAL REDUCTION AMOUNT DUE SELLER 1,200,000.00 300. CASH AT SETTLEMENT FROM OR TO BORROWER 600. CASH AT SETTLEMENT TO OR FROM SELLER 301. Gross amount des 6m borrower bra 120) 1 201.661.00 601. Gross amaml do 10 seller the 420 1 200 w0.00 302. Lisa amounb pWd byfla borrows Oh. 220 8 49210 602. Less reduotm amount des to sells 520 1 000.00 303. CASH FROM BORROWER 1193.368S1 603. CASH TO SELLER 0.00 NB 4305.2 • REV. HUDI(3/86) 04/19/2005 13:30 FTP • userl ®008/013 X. DEPARTMENT OP HOUSING AND URBAN DEVELOPMENT SET 7LENENTBTATEMENf PA092 L. SETTLEMENT CHARGES: Fie Number: 111.037_-______________ PAID PROM RT4 BFUNDSAT SETTLEMENT PAID PROM SELLER'S FUNDS AT SETTLEMENT 700. TOTAL SALESIBROKER'S COMMISSION based on lee S . Divielon of oommSson Me 780 as blow,: 701.$ to 702. b 703. CommIssW p.C at Sadlamant 704. 800. ITEMS PAYABLE IN CONNECTION WITH LOAN P.O.C. 601. Lees On lon Fee % _- „-- 602. Loon Disown) % 003. Aa.IW Fee to .._•• _ 004. Cred1R rt b . 80$. LAndw s IMDSCO.l Pee to 816. Mig Ins. den Fss to 807. to BOB. 009. 810. 011. 812. 813. 014. 815. 900. ITEMS REQUIRED BY LENDER TO BE PAID IN ADVANCE Wi. Interest Gam to $02. M s osuryles Prombm b 903. Karat lnsumnos Promlun 904. 905. - - 1000. RESERVES DEPOSITED WITH LENDER FOR 7 1. rd Maw9na me. S Imo. 1002. M • Insurenoo ma. $ Imo. 1003. Otypnipedyuxn m0. 1 nb. 1004. Corm )axes mo. $ /me. 7005. Mnual Assassmente mo. Imo. 1001. mo. S Imo. 1007. mars Imo. 100& b Raunw b Haar&Flood M Tsxu W S Mai& Attu 1100. TITLE Ch ARGES 1101. Saldrnent er doshig M b Pro Lund T. 400.00 1192. Abstract or 1tle .earth Pro 1r4 Tide 260.00 1103. TMe axamWtlon to 1i04. TMe m,Urenq binder b 110$. Doament noon to 1106. Nets fees to 1107. Momtees _-- b omen MI1 D..b.rg S Kaurh Co. LPA 2J ndudes above Item No: 1108. Tide k,su,ncs to Pro Land TOM / SO b Item No: 1109. Lond✓s aewre 1110. Owne f nnge 1.200 000.00 -1200.10 1111. Tax Ea SaMoa O.T. Transfer & s Corp. 1112. _i.00000 1113. Repeat) S.Mue Fee 1200. GOVERNMENT RECORDINO AND TRANSFER CHARGES 1201. R less DeedS 11.00 9 ;Rebate. 1ll10 1202. Cfty/oo.ityI.lamc. Deed 1203. State texfstLm Deed S e S 1204. 1 1300. ADDITIONAL SETTLEMENT CHARGES 1301. Say to 1302. Pest Inspection to 1303. AflS + Hod Punars 8 1304. CaaW FN Pro Land TYWFad Ex 60.QC 1306. 1308. 1307. 130L 7400. TOTAL SETTLEMENT CHARGES (.nor an Gnu 103 and 602. Sedons J and K) 1,841.00 29.105.96 RESPA, 8843052. REV. HUDI(3/B8) 04/18/2005 13:30 FTP + userl ®007/013 File No: 111-037 HUD -1 CERTIFICATION I have carefully reviewed the HUD -1 Settlement Statement and to the best of my knowledge and belief, it is a true and accurate statement of all receipts and disbursements made on my account or by me in this transaction. I further certify that I have received a copy of the HUD -1 Settlement Statement. SELLER'S AND/OR PURCHASERS STATEMENT; Seller's and Purchases signature hereon acknowledges his/their approval of tax proration and si gni fees their understending that proration were based on taxesfor the proceeding year, or estimates for the current year, and in the event of any change for the current year, all necessary adjustments must be made between Seller and Purchaser,, likewise any default in delinquent taxes will be reimbursed to Title Company by the.Seller. Title Company, in its capacity as Escrow Agent, is and has been authorized to deposit all funds it receives in this transaction in any financial institution, whether affiliated or not Such financial institution may provide Title Company computer accounting and audit services directly or through a separate entity which, if affiliated with Title Company, may charge the financial institution reasonable and proper compensation therefore and retain any profits therefrom. Any escrow fees paid by any party involved in this transaction shall only be for chock writing and input to the computers, but not for aforesaid accounting and audit services. Title Company shall not be liable for any interest or other charges on the earnest money and shall be under no duty to Invest or reinvest funds held by It at any time. Sellers and Purchasers hereby acknowledge and consent to the deposit of the escrow money in financial institutions with which Title Company has or may have otharbanking relationships and further comet to the retention by Title Company and/or its affliatea of any and all benefits (including advantageous interest rates on loans) Title Company and/or its affiliates may receive from such financial institutions by reason of their maintenance of said escrow accounts. G.T. Transfer & Exchange as the accommodator for StellaBeua Plaza LLC pueiptmtalnjpn Parking Plaza LLC i BORROWERS Stella Mogs, Memb o tellaBella Plaza LLC and Mountain Parking Plaza LLC SELLER To the best of my knowledge the BUD -I Settlement statement which I have prepared is a true and accurate account of the funds which were received and have been or will be disbursed by the undersigned as part of the settlement of this transaction. Company. WARNING: It is a crime to owin make false statements to the United States on this or any other similar form. Penalties upon conviction can include a fine and imprisonment. For detail see: Title 18: U.S. Code Section 1001 and Section 1010. Parcel No. 765-01930-000 Parcel No. 765-01940-000 Parcel No. 765-01940-001 WARRANTY DEED CORPORATION BE IT KNOWN BY THESE PRESENTS: THAT WE, StellaBella Plaza, L.L.C., an Liability Company AND Mountain Inn Parking Arkansas Limited Liability Company, hereinafter ca and in consideration of the sum of One Dollar ($1.00) valuable consideration, the receipt of which is hereb hereby grant, bargain, sell and convey unto the C Arkansas, a municipal corporation, hereinafter ca unto Grantee's successors and assigns, the follov situated in the County of Washington, State of Arkans Arkansas Limited Plaza, L.L.C., an ed GRANTORS, for and other good and acknowledged, do fy of Fayetteville, ,d GRANTEE, and ng described land is, to -wit: Lots Two (2), Sixteen (16), Seventeen (17), Eighteen (18), and Nineteen (19), Block Twenty-eight (28), Original Plat of the Town (now City) of Fayetteville, Washington County, Arkansas. TO HAVE AND TO HOLD the said lands land appurtenances thereunto belonging unto the said Grantee and Grantee's successors and assigns, forever. And the said Grantors, hereby covenant that they are lawfully seized of said lands and premises; that the same is unencumbered, and that the Grantors will forever warrant and defend the title to the said lands against all legal claims whatever created by, through, or under Grantors, subject, however, to recorded instruments and easements, if any. WITNESS the execution hereof on this /'7 day of April, 2005. STELLABELLA PLAZA, L.L.C. An Arkansas Limited Liability Co. I t77 /-OUl S..N e, ..-,soh, (Please Print name & TIfie] MOUNTAIN INN PARKING PLAZA, L.L.C. An Arkansas Limited Liability Co. NJ ve!-yo n A LRn, �A [Please Print Flame & Title] �— 04/18/2005 13:30 FTP + userl ®008/013 FileNo: "OWNER'S AFFIDAVIT" AFFIDAVIT AND INDEMNITY AGREEMENT AS TO LEASES, CONTRACTS, FIXTURES, ENCUMBRANCES, MECHANICSLIENS, ETC. STATE OF: COUNTY OF: Before me, the uedenig<ned Notary Public to sad for Said County and State, Personally appeased G.T, Transfer & Exchange as the, aecoommmodator for Stquabfua Pl Plan LLC r Mt [an Parking Plaza LLC, (mown to me and being tint duly sworn, and sa. jig. de ,.A 1. That they own the real property in Washington County, 16,17,18,19 B1k 28 Original; known municipally or refuenced as follows: To wit.. Mountain Ins Parking Deck, Lots 2,16,17,1$19 Bak 28 Original Lot 16 & 17 Blk 28 Fayetteville Original 2. That said owners are in poarerrion of Said property, and the following is a tin of all meant& with rental wml: NAME NONE DATE PROM DATE TO 7. That all persons who haw executed orwill execute iwnuments conveying or encumbering said property are at lest 18 years old and are free from legal disability. 8. That the undersigned make this Statement for the express purposes of inducing: FIRST AMERICAN TITLE INSURANCE CORPORATION m Tatum tide m said property to be free from adverse claims or lies not otherwise herein statedo and of enabling said owner(s) to receive the consideration for sale, tease or mortgage of said property. Affiant s guarantee and warrant the .ratemems of fact heron which &hall be construed u a continual conttacmal obligation In favor otsaid companies. 9. That in oosideradon of the issuance of title insurance bysdd companies as aforesaid, the undenignod ague to indeamity and hold harmless the above indicated tide iseuraoee company against all loss or expose on account of anymattet or thing omitted from the foregoing factual statement, including expense of enforcing this agreement 10.That undersigned's United States Taxpayer Identification Number Is and my United States address Is 3401 Enterprise Parkway, Suite 200, Beachwood, Ohio 44122 11. That undersigned is not a "foreign pawn" as the teem is defined in Section 1443 of the Internal Revenue Code. BY G.T. Transfer & Exchange as the 1cc0ozod310ttr&tJlsBcllaPin LLC and 1015. WC� �. . ' tl: f : :r: ;:: :1:11' t' / \ f 1 1 , 1 , I 04/19/2005 13:31 FTP + userl Q 009/013 Date: Apr1120, 2005 Re: Mountain Inn Parking Deck, Lots 2,16,17,18,19 Blk 28 Original i/We, the undersigned, do hereby state that I/we understand that the taxes for the year 2004 are due in March 2005, are not yet payable and the amount collected at closing has not been certified by the Tax Collector. Therefore, should the amount increase 1/we will be responsible for reimbursing the buyerof any shortages, within 10 calendar days ofnotification Should the amount decrease I/we will be responsible for rettmding the seller the difference within 10 calender days of notification. .1 State of County of . ai /pf SIGNED AND SWORN before me this/ / day of My Commission Expires: rr: My commission has no expiration date. Section 147.03 R. C. 04/18/2005 13:31 FTP • userl ®010/013 DATA SHEET REAL ESTATE 1099-S THIS FORM MUST BE FILLED OUT BY THE TRANSFEROR/SELIJOR THE INFORMATION CONTAINED ON THIS FORM IS IMPORTANT TAX INFORMATION AND IS B E W G FURNISHED TO THE INTERNAL REVENUE SERVICE As the Tmmafaror/Seller YOU are required by law to provide your aoocct taxpayer identifuatioo number. Ifyourcorreet taxpayer identification nlmberis not provided, you maybe subject to civil or criminal penalties Imposed by law. I wtity that the Taxpayer Identifiation Number shown on this statement U the eorrem r. Also, I undratand that IT IS THE RESPONSIBILITY of the T rammfemr/SeUer to ived from this sale. It•d34z663 Stella Moga, Member SS# or Tax ID Mountain Ian Par'k1i Plaza LLC SS# or Tax ID Only one Form 1099 is required if the transferor is husband and wife or a partnership. FOR MULTIPLETRANSFERORS: A SEPARATE FORM 1099-S MUST BE COMPLETED FOR EACH TRANSFEROR RECEIVING PROCEEDS FROM SALE OF REAL ESTATE +++tar+wrrr+t++tr++w+rrrtrrrtt+rrrew»++++r++w+++rr+++a+rrt+rrarrrwwwww.r++ In order to insure filing, it is extremely important that you provide us with the following information. If incorrect information is provided Professional Land Title Company of Arkansas, Inc. is responsible for the misfiling of this report. PLEASE PRINT: TRANSFEROR NAME 1: StelaBeils Plan LLC TRANSFEROR NAME 2: Mountain Inn Parkin` Plaza LLC ADDRESS WHERE YOU WISH FOR 1 1099 TO BE MAILED: Street: I4S HV o u) • de n Zt A D PLEASE CONSULT YOUR CPA FOR INFORMATION REGARDING THE FILING OF THIS REAL ESTATE SALE TO IRS. e Me H•attr•+AAiwp•eew•A{pp q*wi+NHMtl*A++twit+b*AA• •qe*• t getetHNiw DO NOT FILL OUT THIS SECTION Description of Proputy. Mountain Inn & Parking Deck Property Address of Mountain Ian Parking Deck, Lots 2, Arkansas Contact Sala Price: $1,200,000.00 Net proceeds: Closing Date: April 20, 2005 Date: April 20, 2005File No. CLOSMC A0ENT INFORMATION (re be meWkrcd by rlodaa aswq Pnfead®tl land MOO COopmy Of AX. IN. 109 wen Ld sbm lick Racy, AdArW 73201 (501)661.1101 04/19/2005 13:31 FTP Agents Fne No. 111-037 + userl ®011/013 EXIIIBIT A - LEGAL DESCRIPTION Lots 2,18,19, and Part of Lot 17, Block 28, Original Plat of the Town (Now City) of Fayetteville, Washington County, Arkansas. AND, PARKING DECK DESCRIPTION Lot Numbered Sixteen (16) and a Part of Lot Numbered Seventeen (17), in Block Numbered Twenty -Eight (28), of the Original Plat of the Town (Now) City of Fayetteville, Arkansas, being more particularly described as follows: Beginning at the Northwest comer of said Lot Sixteen (16); thence S 8958'07" E, along the North line of said Lots Sixteen (16) and Seventeen (17) 87.06 feet; thence S 0014'25" W, 102.09 feet to a point on the South line of said Lot Seventeen (17); thence N 9958'28" W, 86.48 feet to the Southwest comer of said Lot Sixteen (16); thence N 0005'06" W, 102.10 feet to the Point of Beginning. The above described tract having permanent rights of ingress and egress over and across the following described access easement: PARKING DECK ACCESS DESCRIPTION A part of Lot Numbered Seventeen (17), a Part of Lot Numbered Eighteen (18), and a Part of Lot Numbered Nineteen (19), all in Block Twenty -Eight (28), of the Original Plat of the Town (Now City) of Fayetteville, Arkansas, being more particularly described as follows: Beginning at the Southeast corner of said Lot Nineteen (19); thence N 8958'28" W, along the South line of said Lot Nineteen (19) 24.95 feet to the East Face of an existing building; thence N 0009'41" W along the East face of said building 19.10 feet; thence N 7013'54" E, along the East face of said building lAl feet; thence N 0035'46" W, along the East face of said building 6A3 feet; thence 6 873$'45" W along the East face of said building 1.64 feet; thence N 0308'30" W along the East face of said building 0.70 feet to the Northeast corner of said building; thence N 8953'42" W, 87.99 feet along the North face of said building to the Northwest comer of said building, the same also being the South edge of an existing concrete ramp leading to a parking deck; thence leaving the South edge of said concrete ramp S 0009'15" W, 26.75 feet along the East wall of an entry way to a point on the South line of. said Lot Seventeen (17); thence N 8958'28" W along the South line of said Lot Seventeen (17) 5.04 feet to the West wall of said entry way, the same being the East wall of an existing Parking Deck; thence N 0014'25" E, 49.99 feet along the West Wall of said entry way and the East Wall of said Parking Deck to a point on the North Edge of the above mentioned concrete ramp; thence leaving the East wall of said Parking Deck S 8956'13" E, along the North edge of said concrete ramp 50.69 feet; thence S 8951'39" E, along the North edge of maid concrete ramp 37.36 feet; thence N 704323" E, 26.64 feet to a point on the East line of said Lot Nineteen (19); thence S 0006'52" E, 58.69 feet to the Point of Beginning. 04/19/2005 13:31 FTP • userl ® 013/013 CHOICE OF ATTORNEY (Broker /Lender) has informed me (us) that I (we) have the option of choosing (legal counsel / title company) to close my mortgage loan. I (we) understand that said legal counsel shall represent the Broker/Lender at the closing. ) I (We) select: Attorney / Title Company ( ) I (We) having been informed of this option and having no preference, I (We) have reviewed the Broker / Lender's list of approved closing attorneys / title companies, I (We) have selected: Attorney / Title Company (X) I (We) acknowledge that I (We) have been giving the opportunity to select an attorney / title company to close my (our) mortgage loan. I (We) have no preference regarding closing attorney / title company and choose not to select one. Witness Date ACTION BY WRITTEN CONSENT OF THE SOLE MEMBER AND MANAGER OF STELLABELLA PLAZA, L.L.C. AND MOUNTAIN INN PLAZA, L.L.C., EACH AN ARKANSAS LIMITED LIABILITY COMPANY (the "Companies") The undersigned, Stella Moga, being the sole member and manager of the Companies, hereby takes the following actions and adopts the following resolutions by her written consent: WHEREAS,. Stella Moga and/or StellaBella Plaza, .L.L.C. entered into a Commercial Real Estate Contract last executed as of October 26, 2004, as amended by a First Amendment to Commercial Real Estate Contract dated as of February 28, 2005 (the "Contract"), pursuant to which Stella Moga and/or StellaBella Plaza, L.L.C. agreed to sell to Richard Alexander and John Nock or their, assigns certain real property located in Fayetteville, Arkansas, and commonly referred to as the Mountain Inn and Parking Deck (collectively, the "Property"); and WHEREAS, Mountain Inn Parking Plaza, LLC is the owner of the Parking Deck; and - WHEREAS, the Contract has been assigned by Richard Alexander and John Nock to the City of Fayetteville, Arkansas (the "Buyer"); NOW, THEREFORE, BE IT RESOLVED, that each of the Companies hereby ratifies and confirms the Contract and agrees to sell the Property to Buyer as provided in the Contract; RESOLVED FURTHER, that the Companies shall assign the Contract to G.T. Transfer & Exchange Corp., or another qualified intermediary designated by the Companies (the "Qualified Intermediary"), in order to enable the • Companies to sell the Property in a transaction qualifying as a Tax -Deferred Exchange under Section 1031 of the Internal Revenue Code; RESOLVED FURTHER, that Stella Moga, as the sole member and manager of the Companies, is hereby authorized and directed to execute and deliver for and on behalf of the Companies all such documents, instruments, and agreements as may be necessary or desirable to assign the Contract to a Qualified Intermediary and to consummate the sale of the Property as a Tax -Deferred Exchange; 00031297 1 RESOLVED FURTHER, that all actions heretofore taken by Stella Moga or either of the Companies in connection with the sale of the Property be, and each of such actions hereby is, ratified and approved. IN WITNESS WHEREOF, the and the Companies, has executed this Action by being the sole member and the manager of :psent as of the 18th day of April, 2005. -2- 04/1.9/2005 13:30 FTP + usorl 1001/013 04/15/2005 09:29 PAX 501 324 9421 LAND COMMISSIONER OO2/003 County: Washington PETITION TO REDEEM MARK WILCOX COMMISSIONER OF STATE LANDS STATE OF ARKANSAS 109 State Capitol, Little Rock, Arkansas 72201 501-324-9222 FAX 501-324.9421 Code: 5-12 2002 Year Porfelted: 2002 Date: 4!15!2005 Sale Date: To Be Set. Parcel Number. 765-01940-001 Entered by; palexander According to the records of the Commissioner of State Lands Office MOUNTAININN PARIQNG PLAZA, LLC was the owner of the following described real property at the time the same was forfeited and certified to the State of Arkansas for the non-payment of taxes, to wit: Descriptions LOT 16 & PILOT 17, BLOCK 28 Section: 16 Township: 16N Range: 30W Acreage: 0 Lot 16 & 17 Block: 28 City: FAMETEVILLB Addition: FAYRTFEVTLLE ORIGINAL School Dist 011 SEE OTHER SIDE FOR INSTRUCTIONS THIS SECTION TO BE COMPLETED BY THE PETITIONER: ALL PETITIONERS MUST COMPLETE ALL OF THIS FORM. INCOMPLETE PETITIONS WILL BE RETURNED. Name in which redemption deed should be issued. --Y — a Arkansas If the owner Is different than the name printed on this form, send copies of recorded deeds showing how the title transferred from the name listed on this form to the new owner_ Address: (Tax statement will be mailed here) mailed if Petition to Redeem Mailed to: CITY 0 FAYETTEVILLE 479-443-5892 ATTN PAT TAXES 2002-2003 *4,338.45 $0.00 Interest $434.75 Penalty $433.85 County Cost $3.00 Recording Fee / $11.00 State Costs $30.00 • I •- M . 1 I., q 1 p 1 1• 1 I• . V Record Owner Acent Ana on behalf of reoerd owner vv 1 Subscribed and sworn before xe this %'1 day of 20 4.5, NoAvy Public )31y CosumLidon apirnPAUIJ.SINGERMAN,AttorneyAtLaw Notaryrgotaryruojlc-ba10t0rn0 My commission has no expiration data FOR OFrrlCE USE ONLY Receipt No. Dead No. Data 04/19/200513:30 FIT + usorl I�j002/013 04/15/2005 09:29 PAZ 501 324 0421 LAND COMMISSIONER 1003/003 Instructions for Completing A Petition to Redeem Petition& to Redeem are valid for 80 days from the date printed unless a sale date is pending, the par- cel has been sold`, or otherwise indicated an the front of the petition. If the petition date has expired, an updated Petition to Redeem must be requested. Further, petitions and payments must be received by this office prior to the expiration date. Postmarks will not be accepted. Please be aware of the sale date of the property. To avoid the sale of the property, the past due amount must be paid in full. Possession of a valid Petition to Redeem does not postpone the sale date. 'In the the event property. the property is sold, the record If not redeemed owner has 30 days from the date of the sale to redeem within 30 days, the sale Is final and the property cannot be redeemed. tax statements will be mailed to 2. Provide the name and address where you want the redemption deed malted. If it Is the same Information, you may write ssames . 3. Sian the Petition to Redeem in the space indicated. Indicate you are the record owner below your signature in the space provided. 4. Have the Petition to Redeem o rize . All Petitions to Redeem must be notarized. 5. Mall the Petltlnn to pease... ...a. -.. ...e.. - - . - - • •- -• -w%w '-a....a ., nee. rarual payments cannot be accepted. Submit a separate check for each parcel. Checks should be made payable to the Commissioner of State Lands. 6, Incomplete Petitions to Redeem will be returned for further information. o LOU cannot redeem a parcel of prone n your name unless you are the owner. a If You are now the owner of the nroDerty,provide a "Chain of itle Include all recorded documents that Indicate the transfer of title from the former record owner to you. Copies of re- corded deeds can be obtained from the Circuit Clerk's office in the county in which the property is located. Complete the Petition to Redeem following steps 1-6 listed above. O IfyQU are actina on bahalf of the ----..,.... -. - - - - •••--• -- =$¢nuun snowing you are an heir, or that you have been appointed to act on the owners behalf. In some cases, a signed and notarized statement may be acceptable. The record owner must sign all petitions unless he/she is deceased, physically or mentally Incapaci- tated, or a minor. If you have any questions, contact the Records Division at 501-683-3053 or fax 501-324-9421. When making inquiries, reference the parcel number listed in the upper right hand comer of the Peti- tion to Redeem. Mark Wilcox Commissioner of State Lands 109 State Capitol Bldg Little RockAR 72201 Parcel No. 765-01930-000 Parcel No. 765-01940-000 Parcel No. 765-01940-001 WARRANTY DEED CORPORATION BE IT KNOWN BY THESE PRESENTS: THAT WE, StellaBella Plaza, L.L.C., an Arkansas Limited Liability Company AND Mountain Inn Parking 1 Plaza, L.L.C., an Arkansas Limited Liability Company, hereinafter called GRANTORS, for and in consideration of the sum of One Dollar ($1.00) and other good and valuable consideration, the receipt of which is hereby acknowledged, do hereby grant, bargain, sell and convey unto the City of Fayetteville, Arkansas, a municipal corporation, hereinafter called GRANTEE, and unto Grantee's successors and assigns, the following described land situated in the County of Washington, State of Arkansas, to -wit: Lots Two (2), Sixteen (16), Seventeen (17), Eighteen (18), and Nineteen (19), Block Twenty-eight (28), Original Plat of the Town (now City) of Fayetteville, Washington County, Arkansas. TO HAVE AND TO HOLD the said lands and appurtenances thereunto belonging unto the said Grantee and Grantee's successors and assigns, forever. And the said Grantors, hereby covenant that they are lawfully seized of said lands and premises; that the same is unencumbered, and that the Grantors will forever warrant and defend the title to the said lands against all legal claims whatever created by, through, or under Grantors, subject, however, to recorded instruments and easements, if any. WITNESS the execution hereof on this / 9. day of April, 2005. STELLABELLA PLAZA, L.L.C. An Arkansas Limited Liability Co. • ATTES . A/� u STas1e, Yf oh, / I>'1d2ht� [Please Print Name & Tile] MOUNTAIN INN PARKING PLAZA, L.L.C. An Arkansas Limited Liability Co. / NJ C.19P lM•e,n k4.n;yl [Please Printgame & Title] 1 Mountain Inn Deed Page 2 of 2 ACKNOWLEDGMENT STATE OF OHIO COUNTY OF CUYAHOGA BE IT REMEMBERED, that on this date, before the undersigned, a duly commissioned and acting Notary Public within and for said County and State, personally appeared duly commissioned and acting, Stella Moga, to me well known as the person who executed the foregoing document as the sole member and manager of STELLABELLA PLAZA, L.L.C., An Arkansas Limited Liability Company, and who stated and acknowledged that she had so signed, executed and delivered said instrument for the consideration, uses and purposes therein mentioned and set forth. WITNESS my hand and seal on this 19th day of April, 2005. MY COMMISSION EXPIRES: • Notary Public PAUL J. SINGERMAN, Attorney At Law • Notary Public - State of Ohio My commission has no expiration date. ACKNOWLEDGMENT STATE OF OHIO ss. COUNTY OF CUYAHOGA BE IT REMEMBERED, that on this date, before the undersigned, a duly commissioned and acting Notary Public within and for said County and State, personally appeared duly commissioned and acting, Stella Moga, to me well known as the person who executed the foregoing document as the sole member and manager MOUNTAIN INN PARKING PLAZA, L.L.C., and who stated and acknowledged that she had so signed, executed and delivered said instrument forthe consideration, uses and purposes therein mentioned and set forth. WITNESS my hand and seal on this 19th day of April, 2005. MY COMMISSION EXPIRES: Notary M1JINcERMAN, Attorney w Notary Public • State of Ohio My commission has no expiration date. n__..__ ACKNOWLEDGMENT STATE OF OHIO ss. COUNTY OF CUYAHOGA BE IT REMEMBERED, that on this date, before the undersigned, a duly commissioned and acting Notary Public within and for said County and State, personally appeared Stella Moga, to me well known as the person who executed the foregoing document, and who stated and acknowledged that she had so signed, executed and delivered said instrument for the consideration, uses and purposes therein mentioned and set forth. WITNESS my hand and seal on this 19th day of April, 2005 MY COMMISSION EXPIRES: Notary Public PAUL J. SINGERMAN, Attorney At Law Notary Public • State of Ohio My commission has no expiration date. Section 147.03 R. C. FATIC-305 SNSak A, C,mmltmmt First American Title Insurance Company COMMITMENT SCHEDULE A Issued by: Professional Land Title Company of Arkansas 809 West 3rd Little Rock, AR 72201 (501) 661-1701 Issuing Agent # IA20 TYPE OF POLICY: ALTA Owners Policy Effective Date of this commitment: April 8, 2005 at 8:00 a.m. Agents File No.111-037 Commitment No. 00 -BV 10450 NAME OF PRESENT OWNER: Mountain Inn Parking Plaza, LLC and Stellabella Plaza, LLC NAME OF PURCHASER: City of Fayetteville LEGAL DESCRIPTION OF THE LAND REFERRED TO IN THIS COMMITMENT: Amount $1,200,000.00 TRACT A: Lots, 2,18,19, and Part of Lot 17, Block 28, Original Plat of the Town (Now City) of Fayetteville, Washington County, Arkansas. AND, TRACT B: PARKING DECK DESCRIPTION Lot Numbered Sixteen (16) and a Part of Lot Numbered Seventeen (17), in Block Numbered Twenty -Eight (28), of the Original Plat of the Town (Now) City of Fayetteville, Arkansas, being more particularly described as follows: Beginning at the Northwest corner of said Lot Sixteen (16); thence S 89°58'07" E, along the North line of said Lots Sixteen (16) and Seventeen (17) 87.06 feet; thence S 00°14'25" W, 102.09 feet to a point on the South line of said Lot Seventeen (17); thence N 89°58'28" W, 86.48 feet to the Southwest corner of said Lot Sixteen (16); thence N 00°05'06" W, 102.10 feet to the Point of Beginning. The above described tract having permanent rights of ingress and egress over and across the following described access easement: PARKING DECK ACCESS DESCRIPTION A part of Lot Numbered Seventeen (17), a Part of Lot Numbered Eighteen (18), and a Part of Lot Numbered Nineteen (19), all in Block Twenty -Eight (28), of the Original Plat of the Town (Now City) of Fayetteville, Arkansas, being more particularly described as follows: Beginning at the Southeast corner of said Lot Nineteen (19); thence N 89°58'28" W, along the South line of said Lot Nineteen (19) 24.95 feet to the East Face of an existing building; thence N 00°09'41" W along the East face of said building 19.10 feet; thence N 70°13'54" E, along the East face of said building 1.41 feet; thence N 00°35'46" W, along the East face of said building 6.43 feet; thence S 87°35'45" W along the East face of said building 1.64 feet; thence N 03°08'30" W along the East face of said building 0.70 feet to the Northeast corner of said building; thence N 89°53'42" W, 87.99 feet along the North face of said building to the Northwest corner of said building, the same also being the South edge of an existing concrete ramp leading to a parking deck; thence leaving the South edge of said concrete ramp S 00°09'15" W, 26.75 feet along the East wall of an entry way to a point on the South line of said Lot Seventeen (17); thence N 8958'28" W along the South line of said Lot Seventeen (17) 5.04 feet to the West wall of said entry way, the same being the East wall of an existing Parking Deck; thence N 00°14'25" E, 49.99 feet along the West Wall of said entry way and the East Wall of said Parking Deck to a point on the North Edge of the above mentioned concrete ramp; thence leaving the East wall of said Parking Deck S 89°56'13" E, along the North edge of said concrete ramp 50.69 feet; thence S 89°51'39" E, along the North edge of said concrete ramp 37.36 feet; thence N 70°43'23" E, 26.64 feet to a point on the East line of said Lot Nineteen (19); thence S 00°06'52" E, 58.69 feet to the Point of Beginning. April 19, 2005 Profe,c.Aional Land Title Company of Arkansas a Sherry K Woos Michael P. Rag Brian A. Perry, Washington County Property Address: Mountain Inn & Parking Deck, Fayetteville, AR 72701 First American Title Insurance Company COMMITMENT FOR TITLE INSURANCE a California corporation, herein called the Company, for a valuable consideration, hereby commits to issue its policy or policies of title insurance, as identified in Schedule A, in favor of the proposed Insured named Schedule A, as owner or mortgagee of the estate or interest covered hereby in the land described or referred to in Schedule A, upon payment of the premiums and charges therefor; all subject to the provisions of Schedules A and B and to the Conditions and Stipulations hereof. This Commitment shall be effective only when the identity of the proposed Insured and the amount of the policy and policies committed for have been inserted in Schedule A hereof by the Company, either at the time of the issuance of this Commitment or by subsequent endorsement. This Commitment is preliminary to the issuance of such policy or policies of title insurance and all liability and obligations hereunder shall cease and terminate six months after the effective date hereof or when the policy or policies is not the fault of the Company. This Commitment shall not be valid or binding until countersigned below by the Validating Officer or Agent. IN WITNESS WHEREOF, First American Title Insurance Company has caused its corporate name and seal bo be hereunto affixed by its duly authorized officers on the date shown in Schedule A First American Title Insurance Company /S/Mark R. Arneson /S/ Parker S. Kennedy Secretary President CONDITIONS AND STIPULATIONS 1. The term mortgage, when used herein, shall include deed of trust, trust deed, or other security instrument. 2. If the proposed Insured has or acquires actual knowledge of any defect, lien, encumbrance, adverse claim or other matter affecting the estate or -interest or -mortgage thereon covered by -this Commitment other -than -those shown in Schedule B hereof, and shall fail to disclose such knowledge to the Company in writing, the Company shall be relieved from liability for any loss or damage resulting from any act of reliance hereon to the extent the Company is prejudiced by failure to so disclose such knowledge. If the proposed Insured shall disclose such knowledge to the Company or if the Company otherwise acquires actual knowledge of any such defect, lien, encumbrance, adverse claim or other matter, the Company at its option may amend Schedule B of this Commitment accordingly, but such amendment shall not relieve the Company from liability previously incurred pursuant to Paragraph 3 of the Conditions and stipulations. 3. Liability of the Company under this Commitment shall be only to the named proposed Insured and such parties included under the definition of Insured in the form of policy or policies committed for and only for actual loss incurred in reliance hereon in undertaking in good faith (a) to comply with the requirements hereof, or (b) to eliminate exceptions shown in Schedule B, or (c) to acquire or created the estate of interest or mortgage hereon covered by this Commitment. In no event shall such liability exceed the amount stated in Schedule A for the policy or policies committed for and such liability is subject to the insuring provisions and the Conditions and Stipulations, and the exclusions from coverage of the form of policy or policies committed for in favor of the proposed Insured which are hereby incorporated by reference and are made a part of this Commitment except as expressly modified herein. 4. Any action of actions or rights of action that the proposed Insured may have or may bring against the Company arising out of the status of the title to the estate or interest to the status of the mortgage thereon covered by this Commitment must be based on and are subject to the provisions of this Commitment. FATIC.201-M SCHEDULE B, PARTI COMM rrK (r First American Title Insurance Company COMMITMENT SCHEDULE B -PART I Agents File No. 111-037 Commitment No. 00-B V 10450 REQUIREMENTS Showing defects and objections to be removed or eliminated; liens and encumbrances to be satisfied and discharged of record and requirements to be complied with before policy of title insurance can be issued without exception thereto: 1. Proper documents creating the estate or interest to be insured must be executed and duly filed for record to wit: File a Redemption Deed from the Commissioner of State Lands, State of Arkansas to Mountain Inn Parking Plaza, LLC.(Conveying Tract B) Execution and recordation without intervening rights of a Warranty Deed by Mountain Inn Parking Plaza, LLC conveying the property described in schedule "A" hereof to City of Fayetteville. (Conveying Tract B) Execution and recordation without intervening rights of a Warranty Deed by Stellabella Plaza, LLC conveying the property described in schedule "A" hereof to City of Fayetteville (Conveying Tract A) 2. Full consideration for the interest or estate to be insured must be paid to or for the account of grantors or mortgagors. 3. Furnish satisfactory evidence that there are no outstanding mechanics' or materialmen's liens against the property (Attorney should examine parties carefully, and attach owners' and contractors' affidavits where there has been construction during the statutory period for liens. 4. Payment of all Taxes, charges, assessments levied and assessed against subject property, which are DUE and DELINQUENT. 5. Execution of an Owner' and Contractor's Final Affidavit, Owner's and Seller's Affidavit & Indemnity and Notice of Availability of Owner's Title Insurance in all forms acceptable to the Company. 6. Payment of the premium and other fees and costs due the company. 7. This company will provide an ALTA 8.1 endorsement on the final policy. 8. Furnish this office with a Corporate Resolution from the board of directors (or other managing authority) authorizing the transaction and naming those officers authorized to execute documents to consummate said transaction for Mountain Inn Parking Plaza, LLC. 9. Payment of all franchise taxes now due to the office of the Secretary of the State of Arkansas by the Mountain Inn Parking Plaza, LLC according to the Secretary of States office said corporation in not in good standing at this time due to non-payment of franchise taxes since 2004. 10. Furnish this office with a Corporate Resolution from the board of directors (or other managing authority) authorizing the transaction and naming those officers authorized to execute documents to consummate said transaction for Stellabella Plaza LLC. 11. Payment of all franchise taxes now due to the office of the Secretary of the State of Arkansas by the Stellabellaa Plaza, LLC according to the Secretary of States office said corporation in not in good standing at this time due to non-payment of franchise taxes since 2004. FATIC-202-M SCHEDULE B, PART I1, COMMmMENr First American Title Insurance Company COMMITMENT SCHEDULE B PART II Agent File No.: 111-037 Commitment No.: 00 -BV 10450 EXCEPTIONS Part H Schedule B of the policy or policies to be issued will contain exceptions to the following matters unless the same are disposed of the satisfaction of the Company: I. Defects, liens, encumbrances, adverse claims or other matter, if any, created first appearing in the public records or attaching subsequent to the effective date hereof but prior to the date the proposed insured acquires for value of record the estate or interest or mortgage thereon covered by this Commitment. 2. Rights or claims of parties in possession not shown by the public records. 3. Easements, or claims of easements, not shown by the public records. 4. Encroachments, overlaps, boundary line disputes, or other matters which would be disclosed by an accurate surveyor inspection of the premises. 5. Any lien, or right to a lien, for services, labor, or material heretofore or hereafter furnished, imposed bylaw and not shown by the public records. 6. Any adverse claim to any portion of said land which has been created by artificial means or has accreted to any such portion so created and riparian rights, if any. 7. Taxes or special assessments which are not shown as existing liens by public records. 8. Any prior reservation or conveyance, together with release of damages, of minerals of every kind and character, including, but not limited to oil, gas, sand, and gravel in or on and under subject property. 9. General and special taxes for 2004 and subsequent years not yet due and payable. 10. Subject to all rights of ways, easements, building lines, covenants, or restrictions and all reservations of record or any other of the same, that a physical inspection or survey might disclose. 11. Covenants or Restrictions other than city or county ordinances, but deleting any covenant, condition or restriction indicating a preference, limitation or discrimination based on race, color,-religion,.sex.handicap, familial.statusornationaLorigin to the extent such covenants, conditions or restrictions violate 42 USC 3604(c): 12. Reservations, restrictions, dedications, easements, right-of-way and setback lines as may be shown on the plat of said Fayetteville Original, recorded in plat record Book 4 at Page 3. Assessments, obligations, fees, reservations, restrictions, easements, dedications, rights -of -way, setback lines, covenants and conditions, as contained in the Restrictive/Protective Covenants and/or Bill of Assurance of Fayetteville Original, if any. 13. A Parking Easement in favor of Center Court Square, LLC recorded on September 18, 2001 as land document # 2001114998. 14. The rights of the public and others to use that portion of subject property lying within the right-of-way of Mountain St. on the South side, South College on the East side, and Center Street on the North side of subject property. 15. Reservations, restrictions, right-of-way, easements, dedications and setback lines as are shown on plat of survey, dated November 8, 2000, by Crafton, Tull, & Associates, Inc., as job # 003021-00.. PRO LAND T4TLE Professional Land Trde Company 70 North College Avenue, Suite 1 4778 ass 97e7O1 PAT 4713-443-5793 x Blasingame 473mobe 977-9743 777-2515toN 747 toll free G Age PrProlandtitle.carn www.Prolenddtla.com 04/19/2005 13:30 FTP A. Settlement Statement U.S. Department of Housln9 and Urban Development + userl/0005/013 OMB No. 2502-0265 B. Type of Loan 1.0 FHA 2.0 FmFA 3.®Cenv. UNos. 4.0 VA 5.0 Cony. Ins. !� 6. POs Number 111-037 , 7. Loan Number 0, Mortgage Insurance Ca.. Number C. Note: This form la furnished to give you a statement of actual settlement oasis. Amounts paid to end by the aMMement agent w Mown. IWms marked '(p.o.c.)' were paid outside the dosing. may am shown hre for Information purposes and am not Included In the taste. D. Name end Address of Borower E. Name and Address of War F. Name and Address of Land& City of Faysttav ie G.T. Trensler 6 Exdmnge ai me CASH Foystt.v ., AR 72701 eommmodatsr for Stallab.Ua Plana LL and Mountain Ion Perking Plrixa LLC 3401 Enwrplee Paflway. Suite 200 Baadwmod, Ohio 44122 0. Property Loaurn H. Settlement Agent Mountain Ion Perking Dock Prolesslonal Land TIW Company Lam 2.16.17.18.10 Bo 28 Original Place of SeMement 1. SCW M.nt Oat@ 2713 B.E. I SL, $ts 7 04/20/06 BentmAlle, AR 72712 00: J. SUMMARY OF BORROWER'S TRANSACTION: K. SUMMARY OF SELLER'$ TRANSACTION: 100. GROSS AMOUNT DUE FROM BORROWER 400. GROSS AMOUNT DUE TO SELLER 101. Contract sales price 1,200,000.04 401. Connot sale0 prloo l,200.000.00 102. Personal props.ty402. Personal property 103. S@Mement cJ,errs to borrowecIns 1400 1$1.00 403, 104. 404, 105. 405. ustments for Items Dald by seller In advance ustments for Items paidb dl In advance 105. atynown ones to 405. CI/town taxes m 107. Coun taxes to 407. Coup taxes to 106. Assessment. m 406. Aeseeamente —. 109. 400. 110. 410. Ill. 411, 112. 412. 120. GROSS AMOUNT DV! FROM BORROWER 1201,861.00 420. GROSS AMOUNT DUE TO SELLER 1,200,000.00 200. AMOUNTS PAID BY OR IN BEHALF OF BORROWER 600. REDUCTIONS IN AMOUNT TO SELLER 201. Deposit or earnest money 501. Excess Deposit (see Instructions) 202. Prod sl amount of new loin(s) 502. Settlement charges to seller 1400) _ 29.105.90 203. Second Mortgage 603. Second Mo4a�. 204. 604, Payoff of fiat mortgage loan 205. 505. Payoff of second mgr loan 206. 500. Tex Deferred Money 1133 08.01 207. 607. 208. 508. 209. 509. uatmrtt. for Hem. unpaid by seller Adjustments for Isms unpaid by seller 210. G /town taxes w 510. G /own taxes to 211. Coinly taxes 01/01 to 04/20 8,402.70 511. Caunty tax.. 01/01 to 04/20 8.492.70 212.Assessma to 612.Assessmenm to 213. 513.2003 RE Texas #766-01840.000 6,652.24 214. 514. 2004 RE Taxes #786-01846000 6201.26 215. 515.2006 RE Taxes #765-01936000 4,562.52 216. 516.2004 RE Taxes #763-01046000 4042.40 217. 317.2002-2003 RE Taxes #765-01940.001 6,251.05 218. 516, 2004 RE Tax.. #765-01940-001 2 303.66 210. 610. 220. TOTAL PAID BY I FOR BORROWER 649279 620. TOTAL REDUCTION AMOUNT DUE SELLER 1200 .00 300. CASH AT SETTLEMENT FROM OR TO BORROWER 600. CASH AT SETTLEMENT TO OR FROM SELLER 301. Gm.. amount due from borrower One 120 1201,061.00 601. Gress amoun due to seller line 420) 1.200 000.00 302. Lees amounts paid /Ion borrower W. 220 6,492.70 002. Less reduction amount due to sellr (IIsle 520 / 200 000.00 303. CASH FROM BORROWER 719336871 603. CASH TO SELLER 0.00 RESPA. PIG 4305.2 - REV. HUDI(3/86) 04/19/2005 13:30 FTP + userl ®006/013 tin. DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT SETTLEMENT STATEMENT PAGE 2 L SETTLEMENT CHARGES: File Number: 111.037_--_____________ PAID FROM BFUNDS A RY FTTLE AT SETTLEMENT PAID FROM AT FUNDS AT SETTLEMENT 700. TOTAL SALESIBROKER'S COMMISSION bawd on Ics S . Dlvlebn of mmmisalon Iln 700 n Follows: 701. f to 702. 10 703. Commission old M Sattlsmant 704. 800. ITEMS PAYABLE IN CONNECTION WITH LOAN P.O.C. _•,_ 801. IoM OdQraon Fg. 14 $02. Loan Diacowtt % _ 803. Isd Fn to .- .. _.. 804. Credit Repod to 806. LMdah Irtapd1oa PM to 506. M ins. Applc.bon Fn to 807. to 809. 800. 610. 811, 812 813. 914. 815. 900. ITEMS REQUIRED BY LENDER TO BE PAID IN ADVANCE 001. Intern.? from to /d 002 Moflapo teoureMe Premium M 003. Hazard Insuring. Prwnlum a to 004. - - 006. 1000. RESERVES DEPOSITED WITH LENDER FOR _ 1001. Hazard Inwuena ma. S Imo. 1002. MO.lQagslniurwc. mo. $ limo. 1003. Otya1ytrn. mo. S limo. 1004. Covnlypiop.nytaxn mo. $ /mo. 1005. Mnu.I As.Ksm.ts mo. Imo. 1006. ma. $ Imo. 1007. nq. 0 Imo. 1008. Agnit. Rnerre Ier Han,FMud In; Piop Taaea Mongs9. kit A Mnual A4..nmnts_ 1100. TITLE CHARGES 1101. Sstdemsnt or plot fm to ProLand Tide 400.00 1102. Abebaot or title seamlt to Pro Land T44 250-00 1103, Title eaeminatlon to 1104. Tide inaurwncs tender 4 1106. Dommsnt noon to 1106. Notary fen ro 1107. Anoms fen m Sin emwti Milo Daan A Kann¢ Co. LPA 23,000.00 Includes above Item No: 1108. fld.Inwnno, to Pro land Title 1200.00 In itam No: 1109. Land✓s oowra 1110. ON1efs Downs 1,200,000.00-1,200.00 1111. T.x€xeMng. Sarvia G.T. Tinsfr A Eadange Corp. .• 1.000 1112. 1113. ReMan/Aas rv,nnt S.Mas Fos 1200. GOVERNMENT RECORDING AND TRANSFER CHARGES 1201. R fa.. Dead 11.00 : Mon s S ' RNnna 11.00 1202. C Dour /stem Deed 5 Motl.o. 1203. State Ixntem a Dead $ Mod.g. $ 1204. 1205. 1300. ADDITIONAL SETTLEMENT CHARGES 1301. 9 m 1302. Pet inspection 4 13D3. MeniM 1 W�.t Donicy + HodPam.n d S . 1304. Cater Fn Pro Land Tltlefod Ex 50.00 1306. 1308. 1307. 1308. 1100. TOTAL SETTLEMENT CHARGES (enter on lug. 103 ate 602, SwKions J end K) 1,881.00 29.106. ee RESPA. HS 4305.2 • REV. HUD7(3/S6) 04/19/2005 13:30 FTP • userl ®007/013 File No: 111.037 HUD -1 CERTIFICATION I have carefully reviewed the HUD -1 Settlement Statement and to the best of my knowledge and belief, it is a true and accurate statement of all receipts and disbursements made on my account or by me in this transaction. I further certify that I have received a copy of the HUD -I Settlement Statement. SELLER'S AND/OR PURCHASER'S STATEMENT: Seller's and Purchaser's signature hereon on taxes for the proceeding year, or estimates for the current year, and in the event of my change for the current year, all necessary adjustments must be made between Seller and Purchaser, likewise any default in delinquent taxes will be reimbursed to Title Company by the Seller. Title Company, in its capacity as Escrow Agent, is and has been authorized to deposit all funds it receives in this transaction in any financial institution, whether affiliated or not. Such financial institution may provide Title Company computer accounting and audit services directly or through a separate entity which, if affiliated with Title Company, may charge the financial institution reasonable and proper compensation therefore and retain any profits therefrom. Any escrow fees paid by any party involved in this transaction shall only be for check writing and input to the computers, but not for aforesaid accounting and audit services. Title Company shall not be liable for say interest or other charges on the earnest money and shall be under no duty to invest or reinvest funds held by it at any time. Sellers and Purchaser hereby acknowledge and consent to the deposit of the escrow money in financial institutions with which Title Company has ormay have otherbanking relationships and Autherconsent to the retention by Title Company and/or its affiliates of any and all benefits (including advantageous interest rates on loans) Title Company and/or its affiliates may receive from such financial institutions by reason of their maintenance of said escrow accounts. The panics have read the above sentences, recognize that the recitations herein are material, agree to same and recognize Title Company is relying on the same. City of Fayetteville G.T. Transfer & Exchange as the accommodator for StellaBeua Plaza LLC pziHvIpflfltalnJpn Parking Plaza LLC BORROWERS Stella Moga, Mem o tellafella Plaza LLC and Mountain Parking Plaza LLC SELLER To the best of my knowledge the HUD -I Settlement statement which I have prepared is a true and accurate account of the funds which were received and have been or will be disbursed by the undersigned as part of the settlement of this transaction. Professional Land Tide Company By: Date: April 20, 2005 Settlement Agent WARNING: It is a crime to knowingly make false statements to the United States on this or any other similar form. Penalties upon conviction can include a fine and imprisonment. For detail see: Title 18: U.S. Code Section 1001 and Section 1010. 04/19/2005 13:30 FTP + userl ®008/013 File No:111-037 "OWNER'S AFFIDAVIT" AFFIDAVIT AND INDEMNITY AGREEMENT AS TO LEASES, CONTRACTS, PIXfBtES, ENCUMBRANCES, MECHANICSI]ENS, ETC. STATE OF: COUNTY OF: Before me, the undersigned Notary Public in and for said County and State, personally appeared C.T. Transfer & Exchange u the, accommodator for Sc$lsbella Plea LIC and Mt IParking Plan LLC, (mown to me and being fin; duly sworn, depose and say4a TL 6 et� •{�re .^: km.'.A. 1. That they own the real property in Washington County, 16,17,1&19 Blk 28 Original; known municipally or referenced as follows: To wit: Mountain Ire Puking Deck, Lots 2,16,17,18,19 BILL 28 Original Lot 16 & 17 Blk 28 Fayetteville Original 2. That mid owners are inposseseion ofsaidproperty, and the following is a list of all tersnts with rental terms: NAME DATE FROM DATE TO NONE 3. That all indebtedness due anyone for labor, materials, or service which night be liens on said property are Filly Dail 4. That no security interest under the Uniform Commercial Code has been perfected against the improvements. S. That there are no judgments, pending litigation. executions or attachments in or from any court affecting mid property of said owner(s). 6. That no bankruptcy proceeding in any Federal Court has been filed against or by any owner of mid property. There is no outstanding contract of isle, conveyance or evmmtbrance affecting said property, except NONE 7. That all persons who have executed or will execute instnmients conveying or encumbering said property are at least 18 years old and are free from legal disability. 8. That the undersigned make this statement for the express purposes of inducing: FIST AMERICAN TITLE INSURANCE CORPORATION toinsuretide tosaid property to be free from adverse claims or lieu not otherwise herein stated,and of enabling said owns(s) to receive the consideration for min, lease or mortgage of sold property. Affiant a guarantee and warrant the statements of fact herein, which &hall be construed u e continual contactual obligation In favor of said companies. 9. That in consideration of the issuance of title insurance by mid companies as aforesaid, the undersigned agree to indemnify and hold harmless the above indicated title insurance company against all lore or expense on account of any matter or thing omitted from the foregoing factual statement, including expense of enforcing this agreement. 10.Tbat undersigned's United States Taxpayer Identification Number is and my United States address is 3401 Enterprise Parkway, Suite 200, Beachwood, Ohio 44122 11. That undersigned is note "foreign person' as the room is defined in Section 1445 oldie Internal Revenue Codes tithe a LLC amt / �t41-, Mountain Inn Parking Plea Subscribed and sworn to before me this tha2ic day of April, 200 PA24 j. SINGtRMAN, Attorney At Law My commission expires; Notary Public - State of Ohio My commission has no expiration date. Section 147.03 R. C. Parcel No. 765-01930-000 Parcel No. 765-01940-000 Parcel No. 765-01940-001 WARRANTY DEED CORPORATION BE IT KNOWN BY THESE PRESENTS: THAT WE, StellaBella Plaza, L.L.C., an Arkansas Limited Liability Company AND Mountain Inn Parking Plaza, L.L.C., an Arkansas Limited Liability Company, hereinafter called GRANTORS, for and in consideration of the sum of One Dollar ($1.00) and other good and valuable consideration, the receipt of which is hereby acknowledged, do hereby grant, bargain, sell and convey unto the City of Fayetteville, Arkansas, a municipal corporation, hereinafter called GRANTEE, and unto Grantee's successors and assigns, the following described land situated in the County of Washington, State of Arkansas, to -wit: Lots Two (2), Sixteen (16), Seventeen (17), Eighteen (18), and Nineteen (19), Block Twenty-eight (28), Original Plat of the Town (now City) of Fayetteville, Washington County, Arkansas. TO HAVE AND TO HOLD the said lands and appurtenances thereunto belonging unto the said Grantee and Grantee's successors and assigns, forever. And the said Grantors, hereby covenant that they are lawfully seized of said lands and premises; that the same is unencumbered, and that the Grantors will forever warrant and defend the title to the said lands against all legal claims whatever created by, through, or under Grantors, subject, however, to recorded instruments and easements, if any. WITNESS the execution hereof on this /1 day of April, 2005. STELLABELLA PLAZA, L.L.C. An Arkansas Limited Liability Co. ATTES flqp [Please Print name & Title) MOUNTAIN INN PARKING PLAZA, L.L.C. An Arkansas Limited Liability Co. /N./ ATTTES /l v' tttr.oni ��c27[vl [Please Print F2ame & Title) Mountain Inn Deed Page 2 of 2 ACKNOWLEDGMENT STATE OF OHIO ss. COUNTY OF CUYAHOGA BE IT REMEMBERED, that on this date, before the undersigned, a duly commissioned and acting Notary Public within and for said County and State, personally appeared duly commissioned and acting, Stella Moga, to me well known as the person who executed the foregoing document as the sole member and manager of STELLABELLA PLAZA, L.L.C., An Arkansas Limited Liability Company, and who stated and acknowledged that she had so signed, executed and delivered said instrument for the consideration, uses and purposes therein mentioned and set forth. WITNESS my hand and seal on this 19th day of April, 2005. MY COMMISSION EXPIRES: PAUL J. SINGERMAN, Attorney At Law Notary Public - State of Ohio My commission has no expiration data ACKNOWLEDGMENT STATE OF OHIO ss. COUNTY OF CUYAHOGA BE IT REMEMBERED, that on this date, before the undersigned, a duly commissioned and acting Notary Public within and for said County and State, personally appeared duly commissioned and acting, Stella Moga, to me well known as the person who executed the foregoing document as the sole member and manager MOUNTAIN INN PARKING PLAZA, L.L.C., and who stated and acknowledged that she had so signed, executed and delivered said instrument for the consideration, uses and purposes therein mentioned and set forth. WITNESS my hand and seal on this 19th day of April, 2005. MY COMMISSION EXPIRES: Notary AN, Attorney AuIw Notary Public - State of Ohio My commission has no expiration date. Section 147O4 R C ACKNOWLEDGMENT STATE OF OHIO ss. COUNTY OF CUYAHOGA BE IT REMEMBERED, that on this date, before the undersigned, a duly commissioned and acting Notary Public within and for said County and State, personally appeared Stella Moga, to me well known as the person who executed the foregoing document, and who stated and acknowledged that she had so signed, executed and delivered said instrument for the consideration, uses and purposes therein mentioned and set forth. WITNESS my hand and seal on this 19th day of April, 2005 MY COMMISSION EXPIRES: Notary Public fr PAUL J. SINGERMAN, Attorney At Law Notary Public - State of Ohio My commission has no -expiration date. Section 147.03 R. C. APR.20.2005 8:30AM GUARDIAN TITLE NO.493 P. 2 ASSIGNMENT OF PURCHASE & SALE AGREEMENT FOR EXCHANGE PROPERTY This Assignment, entered into by and between MOUNTAIN' INN PARKING PLAZA, LLC and STELLABELLA PLAZA, LLC (hereinafter called "Exchangor") and G. T. Transfer & Exchange Corp., 1370 West 6th Street, Suite 300, Cleveland, Ohio 44113 (hereinafter called "Intermediary"). WHEREAS, Exchangor as seller entered into that certain Purchase Agreement dated October 22, 2004, assigned to the City of Fayetteville (hereinafter called the "Purchaser"), a copy of which is attached hereto as Exhibit A and is incorporated herein by this reference (hereinafter called the "Real Estate Purchase & Sale Agreement"); and WHEREAS, Exchangor and Intermediary have executed a Exchange Agreement for Exchange of Real Property in which Exchangor has agreed to transfer the property described in Exhibit A to Assignee, in consideration of Intermediary's promise to acquire suitable replacement property and transfer same to Exchangor; and WHEREAS, Exchangor desires to effect a tax deferred exchange pursuant to Section 1031 of the Internal Revenue Code and Intermediary is willing to act as a "qualified intermediary" as that term is defined in Treasury Regulations Section 1.1031 (k)-1(g)(4)(iii); NOW, THEREFORE, the parties agree; (1) Exchangor hereby assigns to Intermediary the Exchangor's right, title and interest in the Real Estate Purchase & Sale Agreement for the relinquishment of the exchange property, (2) Intermediary hereby assumes the Exchangor's rights, title and interest (but not Exchangor's obligation) in the Real Estate Purchase & Sale Agreement. (3) Intermediary, exercising its discretion under Paragraph (12) of The Exchange Agreement, hereby requests and directs Exchangor to deed directly to the Purchaser thereunder the property subject to the Real Estate Purchase & Sale Agreement APR.20.2005 8:30AM GUARDIAN TITLE NO. 493 P. 3 IN WITNESS WHEREOF, the parties have executed this agreement as their free and voluntary act and deed, on the date indicated by each signature. Dated: . 2005 ASSIGNOR: By: Stella Moga Stellabella Plaza, LLC By: Stella Moga ASSIGNEE: Cz T. Transfer & change Corp. By: Gayl. , Jonas Notice to Purchaser You are hereby notified that all of Exchangor's right, title and interest (but not Exchangor's obligation) in and to the Real Estate Purchase & Sale Agreement have been assigned to CUT. Transfer & Exchange Corp. Receipt Acknowledged: City of Fayetteville By: Date 04/19/2005 13:30 FTP 04/15/2005 09:29 FAX 301 324 9421 + userl LAND COMMISSIONER fm 001/013 IM 002/003 County: Washington Code: PETITION TO REDEEM MARK WILCOX COMMISSIONER OF STATE LANDS STATE OF ARKANSAS 109 State Capitol, Little Rock, Arkansas 72201 501-324-9222 FAX 501-324-9421 5-12 2002 Year Forfeited: 2002 Date: 4/15/2005 Sale Date: To Be Set. Parcel Number: 765-01940-001 Entered by: palexander According to the records of the Commissioner of State Lands Office MOUNTAIN INN PARKING PLAZA, LLC was the owner of the following described real property at the time the same was forfeited and certified to the State of Arkansas for the non-payment of taxes, to wit: Description: LOT 16 & PT LOT 17, BLOCK 28 Section: 16 Township: 16N Range: 30W Acreage: 0 Lot: 16 & 17 Block: 28 City: FAYEITEVILLE Addition: FAYRTTEVTLLB ORIGINAL School Dist 011 SEE OTHER SIDE FOR INSTRUCTIONS THIS SECTION TO BE COMPLETED BY THE PETITIONER: ALL PETITIONERS MUST COMPLETE ALL OF THIS FORM. INCOMPLETE PETITIONS WILL BE RETURNED. Name in which redemption deed should be issued. Arkansas a If the owner Is different than the name printed on this form, send copies of recorded deeds showing how the title transferred from the name listed on this form to the new owner_ TAXES Interest Penalty County Cost Recording Fee State Costs I state lbat the fc the beat of ray k above described agent to redet 2002-2003 *4,338.45 $0.00 $434.76 $433.65 $3.00 $11.00 $30.00 afonnation is true and correct to and that I am the owner of the or I am the owner's authorized i1996't&ed property./ V Record Owner Agent 9 on behalf of reoa d owner Address: (Tax statement will be mailed here) Subscribed and sworn before me this/ qt L day of —20a' Name and Address where Redemption Deed should be mailed if different from address listed on this form: Notary Public My Comrnisrioa oy;u s PAUL I SINGERMAN, Attorney At law Nobly YbUC - Statea m My commission has no expiration date. Petition to Redeem Mailed to: FOR OFFICE VSE ONLY CITY 0 FAYETI'EVILLE Receipt No. 479-643-5892 ATTN PAT Deed No. Date 04/19/2005 13:30 FTP + userl 1j002/013 04/15/2005 09:29 FAX 501 324 0421 LAND COMMISSIONER ®003/003 Instructions for Completing A Petition to Redeem Petitions to Redeem are valid for 90 days from the date printed unless a sale date is pending, the par- cel has been sold+, or otherwise indicated on the front of the petition. If the petition date has expired, an updated Petition to Redeem must be requested. Further, petitions and payments must be received by this office prior to the expiration date. Postmarks will not be accepted. Please be aware of the sale date of the property. To avoid the sale of the property, the past due amount must be paid in full. Possession of a valid Petition to Redeem does not postpone the sale date. 'In the the event the property is sold, the record if not owner has 30 days from the date of the sale to redeem property. redeemed within 30 days, the sale Is final and the property cannot be redeemed. tax statements will be mailed to 2. Provide the name and address whore you want the redemption deed mailed, if it is the same information, you may write "Same". 3. Sign the Petition to Redeem In the space indicated, Indicate you are the record owner below your signature In the space provided. 4. Have the Petition to Redeem notarized. All Petitions to Redeem must be notarized. 5. Mail the Petlfinn r„ Rn inu.. dw r ..1 _ separate check for each parcel. Checks should be made payable to the Commissioner of State Lands. d. incomplete Petitippa to Redeem will be returned for further info olio . it you are now the owner of the roe rovlde a "C at of T' e". Include all recorded documents that indicate the transfer of title rom the former record owner to you. Copies of re- corded deeds can be obtained from the Circuit Clerk's office in the county in which the property is located. Complete the Petition to Redeem following steps 1-6 listed above. o If you are actingon behalf of the owner you must establish your right to act on their behalf. You must submit documentation showing you are an heir, or that you have been appointed to act on the owner's behalf. In some cases, a signed and notarized statement may be The he record owner must sign all petitions unless he/she is deceased, physically or mentally incapaci- tated, i- tated, or a minor. o If you are acting nn hah&B../ a IL... wu_- -'-- _ --. _ _ If you have any questions, contact the Records Division at 501-683-3053 or fax 501-324-9421. When making inquiries, reference the parcel number listed In the upper right hand corner of the Peti- tion to Redeem. Mark Wilcox Commissioner of State Lands 109 State Capitol Bldg Little Rock AR 72201 04/19/2005 13:31 FTP + userl 1 009/013 Date: April 20, 2005 Re: Mountain Inn Parking Deck, Lots 2,16,17,15,19 Blk 28 Original I/We, the undersigned, do hereby state that Uwe understand that the taxes for the year 2004 are due in March 2005, are not yet payable and the amount collected at closing has not been certified by the Tax Collector. Therefore, should the amount increase Uwe will be responsible for reimbursing the buyer ofany shortages, within 10 calendar days ofnotifieation Should the amount decrease Uwe will be responsible for refunding the seller the difference within 10 calendar days of notification. Signed and sealed this 1 Q day of A__ City of Fayetteville Stella Moga, Mom or (the StetlaBella Plaza LLC and untain Inn Parking Plaza LLC State of Countyof . + t SIGNED AND SWORN before me this 9 day My Commission Expires: PAUL 1. SINGERMAN, Aftorriby Altaw Notary Public - State of Ohio My commission has no expiration data. Section 147.03 R. C. 04/19/2005 13:31 FTP + userl ®010/013 DATA SHEET REAL ESTATE 1099-S THIS FORM MUST BE FILLED OUT BY THE TRANSFEROR/SELLOR THE INFORMATION CONTAINED ON THIS FORM IS IMPORTANT TAX WFORMATION AND IS BEING FURNISHED TO THE INTERNAL REVENUE SERVICE As the Treaafwor/Seller YOU am required by law to provide your correct taxpayer identification number. If your correct taxpayer idendficationamber is not provided, you maybe subject to civil or criminal penalties imposed by law. coley that the Taxpayer Identification Number shown on this sateroent is the correct Also, I understand that IT IS THE RESPONSIBILITY of the Transferor/Seller to ad from this sale, _/ ` t.OSMz663 Stella Moga, Member SS# or Tax ID a Mountain Inn Parkink Plaza LLC SS# or Tax ID Only one Form 1099 is roquired if the transferor is husband and wife or a partnership. FOR MULTIPLE TRANSFERORS: A SEPARATE FORM 1099-S MUST BE COMPLETED FOR EACH TRANSFEROR RECEIVING PROCEEDS FROM SALE OF REAL ESTATE *t*trNttrrttaaaaaa******fatrtirrrrrrrtffffasafrR***ffir**i*rr***rrrfrrfrfa In order to insure filing, it is extremely important that you provide us with the followinginformation. If incorrect information is provided Professional Land Title Company of Arkansas, Inc. is responsible for the muffling of this report. PLEASE PRINT: TRANSFEROR NAME 1: StelaBella Pan LLC TRANSFEROR NAME 2: Mountain Inn Parking Plan LLC ADDRESS WHERE YOU WISH FOR 1099 TO BE MAILED: Street: 4IAS AV nt1, r \XG n ZeA D City: RJi�.1 t O�� L1`l0I -- PLEASE CONSULT YOUR CPA FOR INFORMATION REGARDING THE PILING OF THIS REAL ESTATE SALE TO IRS. Nitgttrtatittttlitttttitt♦ V!Nltilii Rf iHai!!t!liitbiutalNlN •Mt!•Mtltt DO NOT FILL OUT THIS SECTION Description of Property: Mountain Inn & Parking Deck Property Address of Mountain Inn Parking Deck, Lots 2, Arkansas Contract Silo Price: $1,200,000.00 Net proceeds: Closing Date: April 20, 2005 Date: AprO 20, 2005File No. CLOSING AGENT INFORMATION (m be mmplctcd by analog Pleat) Prefouleo.I ttndTldo Company of AR, Im. cog wta 3rd swell Jul. Rock,AAm,d 72201 (501)661.170) 04/19/2005 13:31 FTP + userl 2 011/013 Agents File No. 111-037 I*:i..`tt7M ; LEGAL DESCRIPTION Lots 2,18, 19, and Part of Lot 17, Block 28, Original Plat of the Town (Now City) of Fayetteville, Washington County, Arkansas. AND, PARKING DECK DESCRIPTION Lot Numbered Sixteen (16) and a Part of Lot Numbered Seventeen (17), in Block Numbered Twenty -Eight (28), of the Original Plat of the Town (Now) City of Fayetteville, Arkansas, being more particularly described as follows: Beginning at the Northwest corner of said Lot Sixteen (16); thence S 8958'07" E, along the North line of said Lots Sixteen (16) and Seventeen (17) 87.06 feet; thence S 0014'25" W, 102.09 feet to a point on the South line of said Lot Seventeen (17); thence N 8958'28" W, 86,48 feet to the Southwest corner of said Lot Sixteen (16); thence N 0005'06" W, 102.10 feet to the Point of Beginning. The above described tract having permanent rights of ingress and egress over and across the following described access easement: PARKING DECK ACCESS DESCRIPTION A part of Lot Numbered Seventeen (17), a Part of Lot Numbered Eighteen (I8), and a Part of Lot Numbered Nineteen (19), all in Block Twenty -Eight (28), of the Original Plat of the Town (Now City) of Fayetteville, Arkansas, being more particularly described as follows: Beginning at the Southeast corner of said Lot Nineteen (19); thence N 8958'28" W, along the South line of said Lot Nineteen (19) 24.95 feet to the East Face of an existing building; thence N 0009'41" W along the East face of said building 19.10 feet; thence N 7013'54" E, along the East face of said building 1.41 feet; thence N 003546" W, along the East face of said building 6A3 feet; thence S 8735'45" W along the East face of said building 1.64 feet; thence N 0308'30" W along the East face of said building 0.70 feet to the Northeast corner of said building; thence N 8953'42" W, 87.99 feet along the North face of said building to the Northwest corner of said building, the same also being the South edge of an existing concrete ramp leading to sparking deck; thence leaving the South edge of said concrete ramp S 0009'15" W, 26.75 feet along the East wall of an entry way to a point on the South line of said Lot Seventeen (17); thence N 8958'28" W along the South line of said Lot Seventeen (17) 5.04 feet to the West wall of said entry way, the same being the East wall of an existing Parking Deck; thence N 0014'25" E, 49.99 feet along the West Wall of said entry way and the East Wall of said Parking Deck to a point on the North Edge of the above mentioned concrete ramp; thence leaving the East wall of said Parking Deck S 8956'13" E, along the North edge of said concrete ramp 50.69 feet; thence S 8951'39" E, along the North edge of said concrete ramp 3736 feet; thence N 7043'23" E, 26.64 feet to a point on the East line of said Lot Nineteen (19); thence S 0006'52" E, 58.69 feet to the Point of Beginning. 04/19/2005 13:31 FTP • userl ®013/013 CHOICE OF ATTORNEY (Broker / Lender) has informed me (us) that I (we) have the option of choosing (legal counsel / title company) to close my mortgage loan. (we) understand that said legal counsel shall represent the Broker/Lender at the closing. I (We) select: Attorney / Title Company ( ) I (We) having been informed of this option and having no preference, I (We) have reviewed the Broker / Lender's list of approved closing attorneys / title companies, I (We) have selected: rU ka'O1 1 -\`a- Attorney / Title Company (X) I (We) acknowledge that I (We) have been giving the opportunity to select an attorney / title company to close my (our) mortgage loan. I (We) have no preference regarding closing attorney / title company and choose not to select one, f r Co -Applicant Date Witness Date ACTION BY WRITTEN CONSENT OF THE SOLE MEMBER AND MANAGER OF STELLABELLA PLAZA, L.L.C. AND MOUNTAIN INN PLAZA, L.L.C., EACH AN ARKANSAS LIMITED LIABILITY COMPANY (the "Companies") The undersigned, Stella Moga, being the sole member and manager of the Companies, hereby takes the following actions and adopts the following resolutions by her written consent: WHEREAS, Stella Moga and/or StellaBella Plaza, L.L.C. entered into a Commercial Real Estate Contract last executed as of October 26, 2004, as amended by a First Amendment to Commercial Real Estate Contract dated as of February 28, 2005 (the "Contract"), pursuant to which Stella Moga and/or StellaBella Plaza, L.L.C. agreed to sell to Richard Alexander and John Nock or their assigns certain real property located in Fayetteville, Arkansas, and commonly referred to as the Mountain Inn and Parking Deck (collectively, the "Property"); and WHEREAS, Mountain Inn Parking Plaza, LLC is the owner of the Parking Deck; and WHEREAS, the Contract has been assigned by Richard Alexander and John Nock to the City of Fayetteville, Arkansas (the "Buyer"); NOW, THEREFORE, BE IT RESOLVED, that each of the Companies hereby ratifies and confirms the Contract and agrees to sell the Property to Buyer as provided in the Contract; RESOLVED FURTHER, that the Companies shall assign the Contract to G.T. Transfer & Exchange Corp., or another qualified intermediary designated by the Companies (the "Qualified Intermediary"), in order to enable the Companies to sell the Property in a transaction qualifying as a Tax -Deferred Exchange under Section 1031 of the Internal Revenue Code; RESOLVED FURTHER, that Stella Moga, as the sole member and manager of the Companies, is hereby authorized and directed to execute and deliver for and on behalf of the Companies all such documents, instruments, and agreements as may be necessary or desirable to assign the Contract to a Qualified Intermediary and to consummate the sale of the Property as a Tax -Deferred Exchange; 00031297 RESOLVED FURTHER, that all actions heretofore taken by Stella Moga or either of the Companies in connection with the sale of the Property be, and each of such actions hereby is, ratified and approved. IN WITNESS WHEREOF, the and the Companies, has executed this Action by being the sole member and the manager of onsent as of the 18th day of April, 2005. STELLA -2- OPERATING AGREEMENT FOR MOUNTAIN INN PARKING PLAZA, L.L.C., AN ARKANSAS LIMITED LIABILITY COMPANY THIS OPERATING AGREEMENT (the "Agreement") is entered into by and between the members of MOUNTAIN INN PARKING PLAZA, L.L.C., an Arkansas limited liability company (the "Company"). The undersigned, being all of the members of the Company, hereby agree as follows: 1.0 PURPOSE. 1.01 To engage in the business of buying, selling, owning, and managing real property; 1.02 To transact any other lawful business for which limited liability companies may be organized under the Arkansas Small Business Entity Tax Pass Through Act (the "LLC Act"). 1.03 Notwithstanding the foregoing and not precluding the Company from engaging in any other permitted activity, the Company shall be in the business of buying, renovating, refurbishing, and managing retail, commercial, office, and/or residential real estate. 2.0 OWNERSHIP. 2.01 Percentage Points. Each member shall own units in the Company equal to the following percentages (the "Percentage Points"): Member Stella Moga 100% 3.0 MANAGEMENT. 3.01 Management Authority. It is mutually agreed by the members of the Company that, except as otherwise provided by law or the terms of this Operating Agreement, authority to manage the business and affairs of the Company shall be delegated exclusively to those• designated managers as shall be elected from time to time by a majority of the Percentage Points of the members. Only members shall be eligible to serve as managers of the Company. Unless they are sooner removed or resign, managers shall serve until their successors shall have been elected and qualified. Managers can be removed with or without cause at any time upon the rate of a majority in interest of the Percentage Points of the Company. 3.02 Managerial Duties. Each member shall discharge the member's managerial duties in good faith, with the care an ordinarily prudent person in a like position would exercise under similar circumstances and in a manner the member reasonably believes to be in the best interest of the Company. 00031288 3.03 Meetings. The members may, but shall not be required to, meet at least once annually to discuss the affairs of the Company. Each member shall receive at least ten (10) days' advance notice of the time and place of any meeting, unless such member waives such notice or attends the meeting absent such notice. Special meetings may be called by any member for any purpose. The notice of any meeting shall set forth the time, place, and purpose(s) of the meeting. The business transacted at a meeting shall be limited to the purposes stated in the notice of the meeting. Any action taken by the members at any meeting held in violation of this section shall be null and void ab initio. Members may participate at any meeting via telephone or similar communication equipment. 3.04 Voting. Each member shall have one vote for each Percentage Point the member owns in the Company. Members may vote by proxy. The affirmative vote of members holding a majority of the Percentage Points shall be required to approve any material action to be taken by the Company. 3.05 Ouorum. All meetings of the members shall require a quorum of the members. A quorum shall be constituted by the members holding a majority of the Percentage Points. 3.06 Member Approval Requirements. The affirmative vote, approval, or consent of a majority in Percentage Points shall be required to decide any matter connected with the business of the Company, except the affirmative vote, approval, or consent of all members shall be required to: (a) amend this Operating Agreement; (b) amend the Articles of Organization of the Company (other than to reflect a change with respect to the registered office or registered agent); (c) approve any act in contravention of this Operating Agreement; (d) compromise an enforceable obligation of a member to make a contribution to the Company; (e) waive dissociation of a member despite the occurrence of an event of dissociation with respect to that member; (f) continue the Company after an event of dissociation with respect to a member; (g) voluntarily dissolve the Company; (h) confessing a judgment against the Company; (i) filing on behalf of the Company a voluntary petition in bankruptcy or a petition or answer of any nature seeking for the Company any reorganization, readjustment, liquidation, dissolution or similar relief under any federal, state, or local statute, law, or regulation; -2- (j) undertaking any act which would make it impossible to carry on the ordinary business of the Company; (k) admitting any new member to the Company if the direct or indirect effect of such admission would be to dilute the interest of any member; (I) co -mingling the funds of the Company with any other person; or (m) employing, or permitting any person to employ, the funds or assets of the Company or the members in any manner other than for the exclusive benefit of the Company. 4.0 LIABILITY OF MEMBERS. 4.01 General Rule. No member or manager shall be liable to the Company or to any other member for monetary damages arising out of any act or failure to act on behalf of the Company except as provided herein, unless such act or omission constitutes gross negligence or willful misconduct. 4.02 Duty of Loyalty. Every member must account to the Company for any profit or benefit derived by that person without the consent of more than one-half (1/2) of the disinterested members from (1) any transaction connected with the conduct or winding up of the Company, or (2) any use by the member of confidential or proprietary information of the company or other matters entrusted to the person as a result of his status as member. 5.0 RECORDS. 5.01 Required Records. The Company shall maintain at its principal place of business the following records: (a) a current and past list of each member setting forth the full name and last known mailing address in alphabetical order; (b) a copy of the Articles of Organization, together with all amendments; (c) copies of this and any other written Operating Agreement, together with any and all amendments; and (d) copies of the federal, state, and local tax returns, and any financial statements for the three (3) most recent years, or if such returns were not prepared, copies of the information and statements which should have been provided to all members to enable them to prepare their federal, state, and local tax returns. -3- Upon reasonable request, a member may, at the member's own expense, inspect and copy, during business hours, any Company record required to be kept by this section, wherever the record is located. 5.02 Inspections. Upon reasonable request, a member may, at the member's own expense, inspect and copy during ordinary business hours any Company record required to be kept by this section, wherever the record is located. 5.03 Distributions. The Company shall maintain reserves of cash in amounts deemed reasonably necessary by the members for the Company's normal business operations. Interim distributions of cash or other assets in excess of reserves shall be distributed to its members on a pro rata basis according to each member's Percentage Points. 6.0 CONTRIBUTIONS. 6.01 Form of Contributions. An interest in the Company may be issued at the direction of the members in accordance with the terms of this Agreement in exchange for property, services rendered, a promissory note or other obligation to contribute cash or property or to perform services. 6.02 Obligation to Make Contributions. The members agree to contribute the amounts of cash, property, and services to the Company as set out in Exhibit A to this Agreement, as amended from time to time, and hereby agree to the values stated therein. Failure of any member to make the initial contributions as set forth in Exhibit A will be deemed a forfeiture by that member to said member's interest in the Company as set forth in Exhibit A. 6.03 Expenses. Expenses will include, but are not limited to, payments of principal and interest of any outstanding indebtedness of the Company, advertising, insurance, taxes, maintenance, utilities, and management fees on any property owned by the Company. 7.0 DEFAULT. 7.01 Any failure of a member to meet its obligations pursuant to Section 6 above will constitute a default by that member. 7.02 A defaulting member may cure any default by paying any past due amount in full plus 10%. 7.03 Any member who continues in default for a period of six (6) months or more may, at the option of the remaining members, be forced to sell said defaulting member's Percentage Points to said remaining members at. 65% of its fair market value. 7.04 Said sale to be in cash or on terms to be decided by the remaining members, not to exceed two (2) years with interest on any outstanding balance to accrue at the rate of 10% per annum, with no obligation by the remaining members to make any payments of principal or interest during said two (2) year period. -4- 7.05 For purposes of a sale as set out in Section 7.03, fair market value will be determined by averaging the fair market values as determined by two (2) M.A.I. certified independent appraisers, with the defaulting member to pick one appraiser, and the remaining members to pick the other appraiser. 8.0 ALLOCATIONS AND DISTRIBUTIONS. 8.01 Interim Distributions. Interim distributions of cash or other assets shall be shared among members on the basis of the following percentages: Member Stella Moga 100% No member shall have the right to require a distribution from the Company in any form other than cash, and no member shall have the right to preferred distributions. 8.02 Distribution to Dissociating Member. Upon dissociation, which does not result in dissolution of the Company, a member shall be entitled to receive any unpaid interim distribution which the member was entitled to receive prior to the event of dissociation. In addition, the member shall receive said distribution within a reasonable time after dissociation. 9.0 TRANSFERS OF INTERESTS. 9.01 Any member shall have the right to assign such member's interest in the Company, in whole or in part, to any other person. Unless and until an assignee of an interest in the Company becomes a member, an assignment of an interest in the Company shall be subject to the following limitations: (a) such assignment entitles the assignee to receive, to the extent assigned, only the distributions to which the assignor would have been entitled; (b) such assignment does not entitle the assignee to participate in the management and affairs of the Company or to become or exercise any rights of a member; (c) the assignee has no liability as a member solely by reason of this assignment; (d) the assignor of an interest in the Company continues to be a member and to have all the rights of members, until the assignee becomes a member or unless the assignor is earlier removed. A member who assigns all of such member's interest in the Company may be removed as a member by an affirmative vote of a majority of the members who have not assigned their interests. Whether or not the assignee becomes a member, the assignor is not released from any liability the assignor may have to the Company with respect to promised contributions of money, property, or services by the assignor. -5- 9.02 Rights of Assignee to Become Member. The following members shall be entitled to sell, transfer, assign or otherwise convey all or any part of their interest in the Company to any other person, with any assignee of such membership interests acquiring all rights of membership in the Company, including the right to participate in management to the same degree as the assigning member, provided that if a fractional interest of any member's interest is conveyed, the assignee of such fractional interest shall obtain only such fraction of the assignor's management rights: Stella Moga 10.0 EVENTS OF DISSOCIATION. 10.01 A person ceases to be a member of the Company upon the occurrence of one or more of the following: (a) the member withdraws voluntarily from the Company by giving thirty (30) days' written notice to the other members; (b) an assignee of the member's entire membership interest is admitted as a new member to the Company; (c) the member is removed by a majority vote of remaining members after assignment of such member's entire interest in the Company; (d) unless all remaining members consent in writing at the time, whenever any member (i) makes a voluntary assignment for the benefit of creditors; (ii) files a petition in bankruptcy; (iii) is adjudicated a bankrupt or insolvent; (iv) files a petition or answer seeking for the member any reorganization, arrangement, composition, readjustment, liquidation, dissolution, or similar relief under any statute, law, or regulation; (v) files an answer or any other pleading admitting or failing to contest the material allegations of a petition filed against the member in any proceeding described in (iv); or (vi) seeks, consents to, or acquiesces in the appointment of a trustee, receiver, or liquidator of the member or of all or any substantial part of the member's properties; (e) unless all remaining members consent in writing at the time, if within 120 days after the commencement of any proceeding against the member seeking reorganization, arrangement, composition, readjustment, liquidation, dissolution, or similar relief under any statute law or regulation, the proceeding has not been dismissed, or if within 120 days after the appointment, without his consent or acquiescence, of a trustee, receiver or liquidator of the member or of all or any substantial part of his properties, the appointment is not vacated or stayed, or if within 120 days after the expiration of any stay, the appointment is not vacated; 6- (f) in the case of a member who is an individual, the member dies, or upon the entry of an order by a court of competent jurisdiction adjudicating the member incompetent to manage his person or estate; (g) in the case of a member who is a trust, or is acting as a member by virtue of being a trustee of a trust, the termination of the trust, but not merely the substitution of a new trustee; (h) in the case of a member that is a separate limited liability company, unless all remaining members consent in writing at the time, upon the dissolution and commencement of winding up of the separate limited liability company; (i) in the case of a member that is a corporation, unless all remaining members consent in writing at the time, upon the filing of a certificate of its dissolution or the equivalent for the corporation, or the revocation of its charter and the lapse of 90 days after notice to the corporation of the revocation without reinstatement of the charter; or (j) in the case of a member that is an estate, the distribution by the fiduciary of the estate's entire interest in the Company. Notwithstanding the foregoing, upon the occurrence of an Event of Dissolution, the members holding a majority of the Percentage Points may vote to continue the Company, and upon such a vote, the Company shall be deemed to have been reconstituted, reorganized, and continued. 11.0 TIMING OF DISSOLUTION. 11.01 The Company is dissolved and its affairs shall be wound up upon the happening of the first to occur of the following; (a) the latest dissolution date specified in the Company's Articles of Organization; (b) the written consent of all members; (c) the dissociation of any member (as provided in Section 10.0 hereof), unless the business of the Company is continued by the consent of all the remaining members on or before the 90th day following any such dissociation; or (d) the entry of a decree ofjudicial dissolution. 11.02 Winding Up. Upon an Event of Dissolution which is not followed by a vote to continue the Company, the business affairs of the Company shall be wound up. In such case, the members shall: (a) prosecute and defend suits; 7- (b) settle and close the business of the Company; (c) dispose the property of the Company; and (d) discharge the liabilities of the Company. 11.03 Distribution Upon Dissolution. After the business affairs of the Company shall be wound up, the proceeds shall be distributed among the members based on their Percentage Points. 11.04 Authority to Wind Up. When the Company is dissolved, its business and affairs may be wound up by: (a) all members who had authority to manage the Company before dissolution; or (b) if one or more of such persons have engaged in wrongful conduct, or upon other cause shown, under the direction of the Chancery Court on the application of any member. 11.05 Articles of Dissolution Required. Those persons in charge of winding up the business and affairs of the Company shall, as soon as practicable after dissolution occurs, file Articles of Dissolution as permitted by the LLC Act. 12.0 ARBITRATION. hn the case of a dispute arising between the members concerning the operation or management of the Company or the interpretation and/or application of the terms of this Agreement and any Exhibit or Exhibits thereto, the members shall submit the same to arbitration. The members shall each be entitled to appoint one nominee who will then collectively meet and by majority agreement shall appoint one arbitrator who shall be a licensed attorney at law. The arbitrator, when appointed, shall have access to all books and records of the Company, and shall have the right to examine all of its accounts, books, notes, securities, inventories, assets, and equipment and to hear evidence of the members and other witnesses related to the dispute, and shall have full authority to do all things fully and completely to enable him or her to make a fair and full settlement of all matters in arbitration. 13.0 PREPARATION OF OPERATING AGREEMENT AND AMENDMENTS. 13.01 Intent. The members agree that: (a) It is unreasonable for any member to have or rely on an expectation not reflected in this Operating Agreement. (b) Any member who has or develops an expectation contrary to or in addition to the contents of this Operating Agreement has a duty to immediately inform the other members and promptly seek to have this Operating Agreement amended to reflect the expectation. -8- (c) The failure of a member who has or develops an expectation contrary to or in addition to the contents of this Operating Agreement to obtain anamendment of this Agreement is evidence that the expectation was not reasonable and estops such member from asserting that expectation as a basis for any claim against the Company or any member. (d) No member has a duty to agree to an amendment hereto if the member in good faith holds an inconsistent expectation, or believes that the amendment is not in the best interest of the Company or is contrary to the legitimate self -interests of the member. 13.02 Amendments. This Operating Agreement may be amended only by written instrument signed by all the members. At the option of the members holding a majority of the Percentage Points, any amendment shall be retroactive to the date on which this Operating Agreement was executed. 14.0 GENERAL PROVISIONS. 14.01 Attorneys' Fees. If any member shall employ an attorney to bring an action to enforce any provision hereof, the prevailing party may recover from the other parties all of the member's reasonable attorneys' fees and expenses incurred in relation thereto. 14.02 Further Assurances. The parties shall, upon written request, execute, acknowledge, and deliver such other instruments and documents and take such further action as may be reasonably necessary to carry out the intent of this Operating Agreement. 14.03 Binding Effect and Benefit. This Operating Agreement shall inure to the benefit of, and shall be binding upon, the heirs, assigns, personal representatives, and successor of the members. 14.04 Headings and Captions. Subject headings and captions are included for convenience only and shall not affect the interpretation of this Operating Agreement. 14.05 Notice. All notices, requests, demands and other communications permitted or required herein shall be in writing, and either delivered in person; sent by express mail or other overnight delivery service providing receipt of delivery; or mailed by certified or registered mail, postage prepaid, return receipt requested, restricted delivery to the relevant party. Any such notice or communication, if given or made by certified mail or recorded express delivery, shall be deemed to have been made when actually received, but not later than three (3) business days after the same was posted or given to such express delivery service. All such notices, unless otherwise designated in writing, shall be sent to the following persons: -9- If to a member: Stella Moga Le Chaperon Rouge 1426 Center Road Avon, Ohio 44011 14.06 Severability. Each provision of this Operating Agreement is severable from all other provisions. If any provision of this Operating Agreement is declared invalid or unenforceable, such provision shall be deemed modified to the extent necessary to render it valid and enforceable. In the event that any court of competent jurisdiction determines that any provision of this Operating Agreement is invalid or unenforceable for any reason, all remaining provisions shall remain in full force and effect. 14.07 Waiver. No waiver of a breach or violation of any provision of this Operating Agreement shall be construed as a waiver of any subsequent breach or limit or restrict any right or remedy otherwise available. Any waiver of any provision shall be in writing and signed by the member to be bound thereby. 14.08 Confidentiality. Each member shall maintain the confidentiality of the provisions of this Operating Agreement, and may only disclose the provisions of this Operating Agreement with the consent of all members or in accordance with applicable law. 14.09 Governing Law and Forum. As a specific inducement to the members to enter into this Operating Agreement, this Operating Agreement shall be subject to and governed by Arkansas law. Any litigation shall be heard in the courts of Washington County, Arkansas. 14.10 Composition of Agreement. Each member represents that the member has each read this Operating Agreement. The members assume joint responsibility for the form and composition of each of the provisions of this Operating Agreement and each acknowledge that this Operating Agreement shall be interpreted as though they equally shared in its preparation. 14.11 Entire Agreement. This Operating Agreement contains the entire agreement of all members and no other oral or written agreements shall be binding on the members. The members acknowledge that they have neither been influenced to enter into this Operating Agreement by any person, nor relied on any representation of any person except for those • representations set forth in this Operating Agreement. This Operating Agreement supersedes all prior agreements, contracts, and understandings of any kind, either oral or written. Effective as of July 3, 2000. STELLA MOGA 10- EXHIBIT A TO THE OPERATING AGREEMENT FOR MOUNTAIN INN PARKING PLAZA, L.L.C., AN ARKANSAS LIMITED LIABILITY COMPANY CONTRIBUTIONS OF MEMBERS Cash, Property, And/Or Agreed Value of Services Member Contributed Value Stella Moga Cash and Services Rendered $ Le Chaperon Rouge 1426 Center Road Avon, Ohio 44011 Ownership by Percentage Points 100% EXCHANGE AGREEMENT THIS EXCHANGE AGREEMENT is entered into on this /q day of ______________,2005, by and between MOUNTAIN INN PARKING PLAZA, LLC and STELLABELLA PLAZA, LLC (hereinafter referred to as "Exchangor") and G.T. TRANSFER & EXCHANGE CORP., an Ohio corporation, (hereinafter referred to as "Intermediary"). RECITALS WHEREAS, Exchangor owns that real property, (hereinafter referred to as "the Relinquished Property") described in Exhibit "A" attached hereto and hereby incorporated by reference herein; and WHEREAS, Exchangor has entered into an agreement dated October 22, 2004, with Richard P. Alexander and John Nock, and WHEREAS, Exchangor desires only to exchange the Relinquished Property for like -kind property (hereinafter referred to as "Replacement Property") in such a way as to qualify for tax - deferred treatment under IRC § 1031 and similar state statutes; and WHEREAS, Exchangor, with a continued intent to complete a tax -deferred exchange pursuant to Internal Revenue Code § 1031, is willing to allow the amendment of Escrow (hereinafter referred to the independent third party handling the funds and documents) to substitute Intermediary as the seller of the Relinquished Property therein in order to allow for the closing of Escrow pending the identification of suitable Replacement Property as specified herein; and WHEREAS, Intermediary is willing to act as a "qualified intermediary" as the term is defined under Treasury Regulation Section 1.1031 (k) -I (g)(4)(iii) and to accept and to hold the proceeds of the Relinquished Property, as set forth in and received from the Escrow, and to utilize the same in securing, acquiring, and transferring to Exchangor suitable Replacement Property to complete the tax -deferred exchange according to the terms and conditions as set forth herein; THEREFORE, the parties hereto agree as follows: (1) Agreement to Receive and Convey Relinquished Property. Subject to and conditioned upon the close of Escrow and otherwise subject to and upon the terms and conditions set forth in this Agreement, Exchangor hereby agrees to convey the Relinquished Property to Intermediary, and Intermediary hereby agrees, conditioned upon Exchangor's complete and full performance of all its obligations hereunder, to convey the Replacement Property to Exchangor, in exchange for the Relinquished Property. (2) Assignment of Real Estate Purchase & Sale Agreement. Consistent with the provisions of Paragraph 11 hereof, Exchangor shall convey all of Exchangor's right, title, and interest in and to the Relinquished Property, by delivery to Escrow on or before the closing of Escrow, of a deed conveying the Relinquished Property to the purchaser in such form as required in the underlying purchase agreement. On or before the closing of Escrow, Exchangor shall (i) execute and deliver to Intermediary an Assignment of Real Estate Purchase & Sale Agreement for the Relinquished Property assigning Exchangor's rights (but not its obligations), thereunder to Intermediary and Intermediary shall agree to accept assignment from Exchangor of Exchangor's rights in the Real Estate Purchase & Sale Agreement (ii) notify the purchaser of the Relinquished Property in writing of such assignment and secure from said purchaser a written acknowledgment of its receipt of said notification of Assignment, and (iii) deliver such receipt to Intermediary. (3) Exchange Account for Relinquished Property. In order to account for and monitor the Exchange Value in respect to the Relinquished Property, Intermediary agrees to establish an exchange account concerning this transaction on Intermediary's books and records in favor of Exchangor (hereinafter referred to as the "Exchange Account"). The opening entry for the Exchange Account shall be the Exchange Value with respect to the Relinquished Property as determined under Paragraph 4 below. Thereafter, the balance in the Exchange Account shall be reduced from time to time by (i) Intermediary's fees and costs, (ii) the Exchange Value with respect to each Replacement Property (i.e., all amounts expended by Intermediary in connection with the acquisition of each Replacement Property, as determined under paragraph 5 below), and (iii) any other payments made or costs or expenses incurred by Intermediary on Exchangor's behalf or in connection with the Replacement Property. The balance of the Exchange Value remaining in the Exchange Account also shall be increased in accordance with paragraph 14 below. Intermediary shall provide Exchangor with an accounting (hereinafter referred to as "Closing Statement") of the Exchange Value in the Exchange Account as soon after or upon the occurrence of a (g)(6) Event (as hereinafter defined) as is practical. In preparing the Closing Statement, Intermediary shall be relying upon information and settlement statements supplied by third -party escrow companies, and Exchangor hereby releases Intermediary from any liability whatsoever in connection with such reliance. (4) Exchange Value for Relinquished Property. In respect to the Relinquished Property, "Exchange Value" shall mean the total cash received by Intermediary from the closing of the Escrow. All real estate commissions, prorations of income and expenses (including rents, interest on encumbrances, real estate taxes, etc.), closing costs, title insurance premiums, escrow fees, and any other amounts otherwise chargeable to Exchangor in the Escrow as seller of the Relinquished Property shall be deemed charged to Intermediary as seller of the Replacement Property, but paid in full out of the Escrow, and shall reduce the Exchange Value for the Relinquished Property. -2- (5) Exchange Value of Replacement Property. In respect to the Replacement Property, "Exchange Value" solely for purposes of this Agreement shall mean the total costs and expenses incurred by Intermediary, in accordance with the provisions of this Agreement in connection with the acquisition and conveyance thereof to Exchangor, including, without limitation, the aggregate amount of all deposits and expenditures by Intermediary in respect to the purchase price, real estate commissions, prorations of income and expenses (including rents, interest on encumbrances, real estate taxes, etc.), closing costs, title insurance premiums, escrow fees, and any other amounts otherwise chargeable to Intermediary in connection with the acquisition and conveyance of the Replacement Property to Exchangor, but excluding any existing mortgage, trust deed or other secured loans which may be assumed or taken subject to by Exchangor. (6) Transfer of Funds from Escrow. At the close of Escrow, unless Exchangor otherwise directs in a writing to Escrow and Intermediary, the cash proceeds shall be transferred, assigned, and/or conveyed to Intermediary and be held by Intermediary pursuant to the terms of this Agreement. (7) Additional Funds for Replacement Property. (a) In no event shall Intermediary be required to make a cash payment for Replacement Property, including all costs and expenses of said purchase, in excess of the sum of the Exchange Value then remaining in the Exchange Account and any additions thereto by Exchangor pursuant to Paragraph 7(b) hereof. (b) In the event additional cash is necessary to acquire the Replacement Property, said amount (i) shall be advanced by Exchangor to Intermediary; (ii) shall be used by Intermediary to acquire the Replacement Property; (iii) shall be considered an interest -free loan from Exchangor to Intermediary (fully satisfied upon the conveyance of Replacement Property to Exchangor); and (iv) in the event the Replacement Property is not conveyed to Exchangor, shall be repaid by Intermediary to Exchangor, as provided in Paragraph (16) below; or (v) said amount shall be advanced by Exchangor to Escrow Agent of the Replacement Property. (8) Identification of Replacement Property. (a) The Identification Period begins on the date Exchangor transfers the Relinquished Property (or if more than one property comprises the Relinquished Property, then on the date of the first transfer of such properties) and ends at midnight on the forty-fifth (45th) day thereafter as provided in Treasury Regulation § 1.1031(k)- (b)(z)(i). -3- (b) Within the Identification Period, Exchangor shall by written notice signed by Exchangor and sent to Intermediary in any manner described in Regulations Section 1.1031 (k) -1(c)(2), identify Replacement Property anywhere in the United States. Such notice from Exchangor shall unambiguously identify the Replacement Property. In any manner described in Regulations Section 1.1031(k) -1(c)(3). (9) Exchange Period & Acquisition of Replacement Property (a) The Exchange Period begins on the date the Exchangor transfers the Relinquished Property (or if more than one property comprises the Relinquished Property, then on the date the first transfer of such properties) and ends at midnight on the earlier of (180th) one hundred and eightieth day thereafter or the due date (including extensions secured by Exchangor) for the Exchangor's federal tax return for the taxable year in which the transfer of the Relinquished Property occurs as provided in Treasury Regulations §1.1031(k)-(1)(b)(2)(ii)-(iv). (b) Thereafter Intermediary shall undertake to contract for and acquire the Replacement Property upon such terms or pursuant to such agreement as Exchangor has negotiated with the seller of such Replacement Property. Intermediary shall incur no liability to Exchangor hereunder if efforts to purchase Replacement Property on the terms and conditions specified by Exchangor shall be unsuccessful. All agreements to purchase the Replacement Property shall be executed by Exchangor. (10) Assignment of Purchase Agreement for Replacement Property (a) Prior to closing of acquisition of any Replacement Property, Exchangor shall assign its rights (but not its obligations) under each replacement property contract to Intermediary and shall (i) execute and deliver to Intermediary an Assignment to Purchase Agreement for Replacement Property for Intermediary's execution in form acceptable to Intermediary, (ii) notify the seller of the Replacement Property in writing of such assignment and secure said seller's written acknowledgment of his receipt of said assignment and (iii) deliver said receipt to Intermediary. (b) Intermediary shall thereafter be deemed to have conveyed the Replacement Property to Exchangor by the direct deed from the seller to Exchangor. (11) No Representations and Warranties. The Intermediary shall not be required to make any warranties or representations regarding the Relinquished Property or Replacement Property . -4- (12) Direct Deeding. To the extent permitted by IRC § 1031 and the Regulations promulgated thereunder, legal title to the Relinquished Property and/or the Replacement Property may be transferred directly from the Exchangor to purchaser of the Relinquished Property or from seller to Exchangor with regard to the Replacement Property. The means for accomplishing such direct deeding may require the execution of an Assignment of Real Estate Purchase & Sale Agreement between the Exchangor and the Intermediary for the Relinquished Property and a separate such agreement between the Exchangor and the Intermediary for the Replacement Property. (13) Exchangor Acknowledgments. Exchangor acknowledges and agrees that: (a) The Intermediary shall not be required to assume any secured loan on any Replacement Property or to execute any promissory notes or other evidence of indebtedness in connection with such acquisitions which would impose any liability on officers the Intermediary for the payment thereof. (b) In no event shall the Intermediary be required to pay a cash amount for the Replacement Property, including all costs and expenses incurred in connection with such purchase, in excess of the Exchange Value then held in the Exchange Account. (c) The Intermediary shall act only in accordance with the terms of this Agreement in making the Replacement Property acquisition and may refuse to proceed with said acquisition in the event said instructions exceed the scope of this Agreement. (14) Disbursements from Exchange Account; Absence of Rights in Exchange Account. Exchangor shall have no right to receive, pledge, borrow or otherwise obtain the benefits of the Exchange Account (including any growth factor thereof) except as expressly provided in Paragraph 16 hereof, except that upon the written request from Exchangor, Intermediary, may make disbursement from the Exchange Account to Exchangor for items that a seller may receive as a consequence of the disposition of property and that are not included in the amount realized from disposition of property (e.g., prorated rents) and transactional items that relate to the disposition of the Relinquished Property or to the acquisition of the Replacement Property and appear under local standards in the typical closing statement as the responsibility of a buyer or seller (e.g., commissions, prorated taxes, recording or transfer taxes and title company fees). Intermediary in its discretion may determine whether or not to make such reimbursements from the Exchange Account. In making such decision, Exchangor shall take into account Treasury Regulation § 1.03 1 (k -I )(g)(7)(ii). -5- (15) Interest Deposits. (a) Any interest earned on the Exchange Account shall be for the benefit of Exchangor, and shall be reported as interest income on Exchangor's tax return, regardless of whether said interest is applied to the purchase of Replacement Property or is received by Exchangor in cash as part of the distribution of the Exchange Account to Exchangor as provided in Paragraph 16 below. (b) Intermediary shall deposit the Exchange Account in a demand or short term time deposit with any one or more of the five largest banks doing business in Cleveland, Ohio. Intermediary shall have no obligation to place the Exchange Account in an interest bearing account unless directed to do so in writing by Exchangor. If so directed, Intermediary shall place the Exchange Account in a short-term savings account or other interest bearing account that allows for immediate withdrawal and retain and accumulate all of the interest thereon to the end that the same will yield an income that will be available when needed for the acquisition of the Replacement Property and payment of expenses of the Intermediary as herein provided. (16) Disbursement of Exchange Account. Subject only to disbursements permitted under Paragraph 14 above the Exchange Account shall be paid to Exchangor by the Intermediary under the following conditions: (a) If the Exchangor (i) fails to identify Replacement Property within the Identification Period or (ii) has revoked within the Identification Period any identified Replacement Property, pursuant to Treasury Regulation §.1.1031(k) - (1)(c)(6), then the exchange has failed and this Agreement shall terminate and the Intermediary shall pay the Exchange Account to Exchangor. (b) If Exchangor has timely identified Replacement Property, after Exchangor has received all of the identified Replacement Property to which Exchangor is • entitled, this Agreement shall terminate and the Intermediary shall pay the • Exchange Account to Exchangor. (c) If Exchangor identifies Replacement Property, following the occurrence after the end of the Identification Period of a material and substantial contingency that (i) relates to the deferred exchange, (ii) is provided for in writing, and (iii) is beyond the control of Exchangor and of any disqualified person as defined in Treasury Regulation § 1.1031(k) -1(k), other than the person obligated to transfer the Replacement Property to the Exchangor, this Agreement shall terminate and the Intermediary shall pay the Exchange Account to Exchangor. (d) Otherwise, at the end of the Exchange Period. -6- (17) Arbitration. Any dispute as to the interpretation of the content, extent, or applicability of this Agreement or Exchangor's instructions to Intermediary shall be immediately arbitrated. (a) Arbitration shall be in accordance with the American Arbitration Association in Cleveland, Ohio. Each party shall be afforded discovery similar to that under the Ohio Civil Rules of Procedure on an expedited basis determined by the arbitrator but in no event longer than forty (40) days. (b) Within three working days after the arbitrator's selection and acceptance of appointment and written notification to Intermediary, Exchangor and Intermediary shall each furnish to the other and to said selected arbitrator a written statement of their respective positions regarding said dispute and shall furnish, as reasonably requested by arbitrator, any further answering or explanatory statements that the arbitrator may require. (c) The parties agree to be bound by the decision of said arbitrator and agree that said arbitration is in lieu of and instead of any rights to judicial proceedings and determinations that the parties may have. (d) Except as provided in paragraph (e), the costs of arbitration are to be borne equally between Exchangor and Intermediary and each party shall be responsible for its own attorney fees. (e) In any controversy, claim, or dispute between the parties hereto arising out of or relating to this Agreement or the breach thereof the prevailing party shall be entitled to receive from the other party reasonable expenses, attorney fees, and costs. (f) The prevailing party shall be entitled to enforce the decision of the arbitrator by receiving a judgment, including attorney fees in obtaining such judgment, in the Cuyahoga County Common Pleas Court. (18) Intermediary Powers and Covenants. (a) Intermediary shall be compensated for services at its customary rate from time in effect. Intermediary shall be reimbursed for all amounts for which it may become chargeable or for which it may be held responsible or liable, including expenses for counsel, agents, (and others employed in regard to the Agreement), for all other out-of-pocket expenses in relation to this Agreement, and for all taxes which may be payable by it in the Agreement. -7- (b) The Intermediary may consult with legal counsel to be selected and employed by it and shall be fully indemnified by the Exchangor with respect to any action under this Agreement taken or suffered in good faith by Intermediary in accordance with the opinion of such counsel. (c) Intermediary shall have a first lien on all items held by it pursuant hereto for its compensation and for any costs, liabilities, expenses, or fees which it may incur, and Intermediary shall not be required to deliver any instrument or other property or to disburse any funds held by it unless and until it has received full payment. (d) Intermediary shall not be liable to anyone whatsoever by reason of any error of judgment or for any act done or step taken or omitted by it in good faith or for any mistake of fact or law or for anything which it may do or refrain from doing in connection herewith unless caused by or arising out of Intermediary's own gross negligence or willful misconduct. (e) Without intending to detract or diminish the limitations on the obligations imposed upon Intermediary by the foregoing, it is understood and agreed that Intermediary shall not at any time be obligated to actually or constructively take title to or possession of the Relinquished Property or Replacement Property, and that it does not assume any responsibility as to the validity of the title conveyed to the Exchangor or purchaser, or as to the inspection of or report upon the condition of the Relinquished Property or Replacement Property or as to the payment of any liens or encumbrances now or hereafter existing or vested upon the Relinquished Property or Replacement Property, or as to the performance of any covenants and restrictions imposed, or as to any zoning ordinances relating thereto. (f) Intermediary shall not be required to furnish statements as to the assets constituting the Exchange Account, and does not assume any obligations for the filing of tax returns or any information of whatsoever character, or the payment of • such taxes, or the taxes, assessments or reassessments how or hereafter becoming • due, or charged against the Relinquished Property or Replacement Property or for the removal of any liens to which the Relinquished Property or Replacement Property are now, or may hereafter become subject. (19) Claims Against Exchange Account. Intermediary shall be under no obligation to recognize any person, firm, corporation or entity as the owner and holder of any right in, or claims against the Exchange Account, unless the Intermediary shall have been secured and indemnified to its full satisfaction against all costs, expenses, or liability including counsel fees which it believes may arise out of its compliance with such request or demand. -8- (20) Indemnification of Intermediary. Exchangor shall indemnify and hold harmless Intermediary against any and all actions, suits, claims, proceedings, assessments, demands, judgments, settlements, costs and expenses, including legal and accounting fees, arising out of (i) the transactions contemplated by this Agreement; (ii) any damage or deficiency resulting from any misrepresentation, breach of warranty or omission contained in any instrument furnished to or to be furnished by Intermediary hereunder or in connection with the transactions contemplated hereby; (iii) the failure of the exchange to be non-taxable; (iv) the failure of the transfer of Relinquished Property or Replacement Property to occur; (v) environmental liabilities or defects at any of the Relinquished Properties or Replacement Properties; and (vi) any audit of transaction by Internal Revenue Service. (21) Notices. All notices provided or required to be given under this Agreement shall be deemed to have been duly given, served, and delivered if mailed by United States registered or certified mail addressed to the party entitled to receive the same at the address specified in this Agreement or hand -delivered; provided, however, that any party may change its mailing address by giving to the other parties written notice of its new mailing address, and any notice so given shall be deemed to have been given, served, and delivered on the date following the date on which said notice was mailed in the manner herein provided. (22) Time. Time is of the essence of this Agreement. (23) Amendment. This Agreement may not be amended or modified in any respect whatsoever except by an instrument in writing signed by the parties hereto. This Agreement constitutes the entire agreement between the parties with respect to the subject matter hereof. If any provisions of this Agreement shall be held invalid, such invalidity shall not affect any other provision hereof. (24) No Warranty Regarding Tax Consequences. Intermediary makes no representation or warranty concerning the federal or state tax consequences to Exchangor of the transactions contemplated herein, and shall not be liable for any damages, losses or expenses incurred by Exchangor if (i) any replacement property fails to qualify as "like kind property:, or (ii) the transaction otherwise fails, for any reason, to afford Exchangor the benefits of Section 1031 of the Internal Revenue Code. (25) Miscellaneous. This Agreement shall be construed in accordance with the laws of the State of Ohio. This Agreement may be executed in duplicate counterparts, each of which so executed shall, irrespective of the date of its execution and delivery, be deemed an original, and said counterparts together shall constitute one and the same agreement. This Agreement inures to the benefit of and binds all parties hereto, their heirs, legatees, devisees, administrators, executors, successors and assigns. -9- IN WITNESS WHEREOF, the parties have caused this Agreement to be executed on the date first above written. `EXCHANGOR" Address for notices: n o qqQ "INTERMEDIARY" G.T. TRANSFER & EXCHANGE CORP. By: 1370 West Sixth Street, Suite 300 Cleveland, Ohio 44113 -10- ASSIGNMENT OF PURCHASE & SALE AGREEMENT FOR EXCHANGE PROPERTY This Assignment, entered into by and between MOUNTAIN INN PARKING PLAZA, LLC and STELLABELLA PLAZA, LLC (hereinafter called "Exchangor") and G. T. Transfer & Exchange Corp., 1370 West 6th Street, Suite 300, Cleveland, Ohio 44113 (hereinafter called "Intermediary"). WITNESSETH: WHEREAS, Exchangor as seller entered into that certain Purchase Agreement dated Ocotber 22, 2004 with Richard P. Alexander and John Nock (hereinafter called the "Purchaser"), a copy of which is attached hereto as Exhibit A and is incorporated herein by this reference (hereinafter called the "Real Estate Purchase & Sale Agreement"); and WHEREAS, Exchangor and Intermediary have executed a • Exchange Agreement for Exchange of Real Property in which Exchangor has agreed to transfer the property described in Exhibit A to Assignee, in consideration of Intermediary's promise to acquire suitable replacement property and transfer same to Exchangor; and WHEREAS, Exchangor desires to effect a tax deferred exchange pursuant to Section 1031 of the Internal Revenue Code and Intermediary is willing to act as a "qualified intermediary" as that term is defined in Treasury Regulations Section 1.1031 (k) -I (g)(4)(iii); NOW, THEREFORE, the parties agree: (1) Exchangor hereby assigns to Intermediary the Exchangor's right, title and interest in the Real Estate Purchase & Sale Agreement for the relinquishment of the exchange property. (2) Intermediary hereby assumes the Exchangor's rights, tide and interest (but not Exchangor's obligation) in the Real Estate Purchase & Sale Agreement. (3) Intermediary, exercising its discretion under Paragraph (12) of the Exchange Agreement, hereby requests and directs Exchangor to deed directly to the Purchasers thereunder the property subject to the Real Estate Purchase & Sale Agreement IN WITNESS WHEREOF, the parties have executed this agreement as their free and voluntary act and deed, on the date indicated by each signature. Datedo _I , 2005 ASSIGNOR: '.ui�a�i` •.�• ASSIGNEE: G T. Transfer & Exchange Corp. By: Gayle L. Jonas Notice to Purchaser You are hereby notified that all of Exchangor's right, title and interest (but not Exchangor's obligation) in and to the Real Estate Purchase & Sale Agreement have been assigned to G.T. Transfer & Exchange Corp. G� of• Receipt Acknowledged: 3 ' Date John Nock Date FATIC-205 Schedule A, Commilme°l First American Title Insurance Company COMMITMENT SCHEDULE A Issued by: Professional Land Title Company of Arkansas 809 West 3rd Little Rock, AR 72201 (501) 661-1701 Issuing Agent # IA20 TYPE OF POLICY: ALTA Owners Policy Effective Date of this commitment: April 8 2005 at 8:00 a.ft2. Agents File No.111-037 Commitment No. 00 -By 10450 NAME OF PRESENT OWNER: Mountain Inn Parking Plaza, LLC and Stellabella Plaza, LLC NAME OF PURCHASER: City of Fayetteville LEGAL DESCRIPTION OF THE LAND REFERRED TO IN THIS COMMITMENT: Amount $1,200,000.00 TRACT A: Lots, 2, 18, 19, and Part of Lot 17, Block 28, Original Plat of the Town (Now City) of Fayetteville, Washington County, Arkansas. AND, TRACT B: PARKING DECK DESCRIPTION Lot Numbered Sixteen (16) and a Part of Lot Numbered Seventeen (17), in Block Numbered Twenty -Eight (28), of the Original Plat of the Town (Now) City of Fayetteville, Arkansas, being more particularly described as follows: Beginning at the Northwest corner of said Lot Sixteen (16); thence S 89°58'07" E, along the North line of said Lots Sixteen (16) and Seventeen (17) 87.06 feet; thence S 0001412511W, 102.09 feet to a point on the South line of said Lot Seventeen (17); thence N 89°58'28" W, 86.48 feet to the Southwest corner of said Lot Sixteen (16); thence N 00°05'06" W, 102.10 feet to the Point of Beginning. The above described tract having permanent rights of Ingress and egress over and across the following described access easement: PARKING DECK ACCESS DESCRIPTION A part of Lot Numbered Seventeen (17), a Part of Lot Numbered Eighteen (18), and a Part of Lot Numbered Nineteen (19), all in Block Twenty -Eight (28), of the Original Plat of the Town (Now City) of Fayetteville, Arkansas, being more particularly described as follows: Beginning at the Southeast corner of said Lot Nineteen (19); thence N 89°58'28" W, along the South line of said Lot Nineteen (19) 24.95 feet to the East Face of an existing building; thence N 00°09'41" W along the East face of said building 19.10 feet; thence N 70°13'54" E, along the East face of said building 1.41 feet; thence N 00°35'46" W, along the East face of said building 6.43 feet; thence S 87°35'45" W along the East face of said building 1.64 feet; thence N 03°08'30" W along the East face of said building 0.70 feet to the Northeast corner of said building; thence N 89°53'42" W, 87.99 feet along the North face of said building to the Northwest corner of said building, the same also being the South edge of an existing concrete ramp leading to a parking deck; thence leaving the South edge of said concrete ramp S 00°09'15" W, 26.75 feet along the East wall of an entry way to a point on the South line of said Lot Seventeen (17); thence N 8958'28" W along the South line of said Lot Seventeen (17) 5.04 feet to the West wall of said entry way, the same being the East wall of an existing Parking Deck; thence N 00°14'25" E, 49.99 feet along the West Wall of said entry way and the East Wall of said Parking Deck to a point on the North Edge of the above mentioned concrete ramp; thence leaving the East wall of said Parking Deck S 89°56'13" E, along the North edge of said concrete ramp 50.69 feet; thence S 89°51'39" E, along the North edge of said concrete ramp 37.36 feet; thence N 70°43'23" E, 26.64 feet to a point on the East line of said Lot Nineteen (19); thence S 00°06'52" E, 58.69 feet to the Point of Beginning. April 19, 2005 Profestional Land Title Company of Arkansas O Sighing Agents Sherry K Woos Michael P. Rag Brian A. Perry, Washington County Property Address: Mountain Inn & Parking Deck, Fayetteville, AR 72701 First American Title Insurance Company COMMITMENT FOR TITLE INSURANCE a California corporation, herein called the Company, for a valuable consideration, hereby commits to issue its policy or policies of title insurance, as identified in Schedule A, in favor of the proposed Insured named Schedule A, as owner or mortgagee of the estate or interest covered hereby in the land described or referred to in Schedule A, upon payment of the premiums and charges therefor; all subject to the provisions of Schedules A and B and to the Conditions and Stipulations hereof. This Commitment shall be effective only when the identity of the proposed Insured and the amount of the policy and policies committed for have been inserted in Schedule A hereof by the Company, either at the time of the issuance of this Commitment or by subsequent endorsement. This Commitment is preliminary to the issuance of such policy or policies of title insurance and all liability and obligations hereunder shall cease and terminate six months after the effective date hereof or when the policy or policies is not the fault of the Company. This Commitment shall not be valid or binding until countersigned below by the Validating Officer or Agent. IN WITNESS WHEREOF, First American Title Insurance Company has caused its corporate name and seal bo be hereunto affixed by its duly authorized officers on the date shown in Schedule A First American Title Insurance Company /S/Mark R. Arneson /S/ Parker S. Kennedy Secretary President CONDITIONS AND STIPULATIONS 1. The term mortgage, when used herein, shall include deed of trust, trust deed, or other security instrument. 2. If the proposed Insured has or acquires actual knowledge of any defect, lien, encumbrance, adverse claim or other matter affecting the estate or interest or mortgage thereon covered by this Commitment other than those shown in Schedule B hereof, and shall fail to disclose such knowledge to the Company in writing, the Company shall be relieved from liability for any loss or damage resulting from any act of reliance hereon to the extent the Company is prejudiced by failure to so disclose such knowledge. If the proposed Insured shall disclose such knowledge to the Company or if the Company otherwise acquires actual knowledge of any such defect, lien, encumbrance, adverse claim or other matter, the Company at its option may amend Schedule B of this Commitment accordingly, but such amendment shall not relieve the Company from liability previously incurred pursuant to Paragraph 3 of the Conditions and stipulations. 3. Liability of the Company under this Commitment shall be only to the named proposed Insured and such parties included under the definition of Insured in the form of policy or policies committed for and only for actual loss incurred in reliance hereon in undertaking in good faith (a) to comply with the requirements hereof, or (b) to eliminate exceptions shown in Schedule B, or (c) to acquire or created the estate of interest or mortgage hereon covered by this Commitment. In no event shall such liability exceed the amount stated in Schedule A for the policy or policies committed for and such liability is subject to the insuring provisions and the Conditions and Stipulations, and the exclusions from coverage of the form of policy or policies committed for in favor of the proposed Insured which are hereby incorporated by reference and are made a part of this Commitment except as expressly modified herein. 4. Any action of actions or rights of action that the proposed Insured may have or may bring against the Company arising out of the status of the title to the estate or interest to the status of the mortgage thereon covered by this Commitment must be based on and are subject to the provisions of this Commitment. FATIC-201-M SCHEDULE B, PARTI COMMITMENT First American Title Insurance Company COMMITMENT SCHEDULE B -PART I Agents File No. 111-037 Commitment No. 00 -BV 10450 REQUIREMENTS Showing defects and objections to be removed or eliminated; liens and encumbrances to be satisfied and discharged of record and requirements to be complied with before policy of title insurance can be issued without exception thereto: 1. Proper documents creating the estate or interest to be insured must be executed and duly filed for record to wit: File a Redemption Deed from the Commissioner of State Lands, State of Arkansas to Mountain Inn Parking Plaza, LLC.(Conveying Tract B) Execution and recordation without intervening rights of a Warranty Deed by Mountain Inn Parking Plaza, LLC conveying the property described in schedule "A" hereof to City of Fayetteville. (Conveying Tract B) Execution and recordation without intervening rights of a Warranty Deed by Stellabella Plaza, LLC conveying the property described in schedule "A" hereof to City of Fayetteville (Conveying Tract A) 2. Full consideration for the interest or estate to be insured must be paid to or for the account of grantors or mortgagors. 3. Furnish satisfactory evidence that there are no outstanding mechanics' or materialmen's liens against the property (Attorney should examine parties carefully, and attach owners' and contractors' affidavits where there has been construction during the statutory period for liens. 4. Payment of all Taxes, charges, assessments levied and assessed against subject property, which are DUE and DELINQUENT. 5. Execution of an Owner' and Contractor's Final Affidavit, Owner's and Seller's Affidavit & Indemnity and Notice of Availability of Owner's Title Insurance in all forms acceptable to the Company. 6. Payment of the premium and other fees and costs due the company. 7. This company will provide an ALTA 8.1 endorsement on the final policy; 8. Furnish this office with a Corporate Resolution from the board of directors (or other managing authority) authorizing the transaction and naming those officers authorized to execute documents to consummate said transaction for Mountain Inn Parking Plaza, LLC. 9. Payment of all franchise taxes now due to the office of the Secretary of the State of Arkansas by the Mountain Inn Parking Plaza, LLC according to the Secretary of States office said corporation in not in good standing at this time due to non-payment of franchise taxes since 2004. 10. Furnish this office with a Corporate Resolution from the board of directors (or other managing authority) authorizing the transaction and naming those officers authorized to execute documents to consummate said transaction for Stellabella Plaza LLC. 11. Payment of all franchise taxes now due to the office of the Secretary of the State of Arkansas by the Stellabellaa Plaza, LLC according to the Secretary of States office said corporation in not in good standing at this time due to non-payment of franchise taxes since 2004. FATIC-202-M SCHEDULE B, PART 11, COMMITMENT First American Title Insurance Company COMMITMENT SCHEDULE B PART II Agent File No.: 111-037 Commitment No.: 00 -BV 10450 EXCEPTIONS Part II Schedule B of the policy or policies to be issued will contain exceptions to the following matters unless the same are disposed of the satisfaction of the Company: 1. 2. 3. 4. 5. 6. 7. 8. 9. 10 12 13. 14. 15. Defects, liens, encumbrances, adverse claims or other matter, if any, created first appearing in the public records or attaching subsequent to the effective date hereof but prior to the date the proposed insured acquires for value of record the estate or interest or mortgage thereon covered by this Commitment. Rights or claims of parties in possession not shown by the public records. Easements, or claims of easements, not shown by the public records. Encroachments, overlaps, boundary line disputes, or other matters which would be disclosed by an accurate survey or inspection of the premises. Any lien, or right to a lien, for services, labor, or material heretofore or hereafter furnished, imposed bylaw and not shown by the public records. Any adverse claim to any portion of said land which has been created by artificial means or has accreted to any such portion so created and riparian rights, if any. Taxes or special assessments which are not shown as existing liens by public records. Any prior reservation or conveyance, together with release of damages, of minerals of every kind and character, including, but not limited to oil, gas, sand, and gravel in or on and under subject property. General and special taxes for 2004 and subsequent years not yet due and payable. Subject to all rights of ways, easements, building lines, covenants, or restrictions and all reservations of record or any other of the same, that a physical inspection or survey might disclose. Covenants or Restrictions other than city or county ordinances, but deleting any covenant, condition or restriction indicating a preference, limitation or discrimination based on race, color, religion, sex, handicap, familial status, or national origin to the extent such covenants, conditions or restrictions violate 42 USC 3604(c): Reservations, restrictions, dedications, easements, right-of-way and setback lines as may be shown on the plat of said Fayetteville Original, recorded in plat record Book 4 at Page 3. Assessments, obligations, fees, reservations, restrictions, easements, dedications, rights -of -way, setback lines, covenants and conditions, as contained in the Restrictive/Protective Covenants and/or Bill of Assurance of Fayetteville Original, if any. A Parking Easement in favor of Center Court Square, LLC recorded on September 18, 2001 as land document # 2001114998. The rights of the public and others to use that portion of subject property lying within the right-of-way of Mountain St. on the South side, South College on the East side, and Center Street on the North side of subject property. Reservations, restrictions, right-of-way, easements, dedications and setback lines as are shown on plat of survey, dated November 8, 2000, by Crafton, Tull, & Associates, Inc., as job # 003021-00.. Parcel No. 765-01939-000 jl pLM a!o-oy y,Loios /QED WARRANTY DEED BE IT KNOWN BY THESE PRESENTS: THAT WE, Marjorie H. Niblock, surviving spouse of Walter R. Niblock, deceased, hereinafter called GRANTOR, for and in consideration of the sum of One Dollar ($1.00) and other good and valuable consideration, the receipt of which is hereby acknowledged, do hereby grant, bargain, sell and convey unto the City of Fayetteville, Arkansas, a municipal corporation, hereinafter called GRANTEE, and unto Grantee's successors and assigns, the following described land situated in the County of Washington, State of Arkansas, to -wit: Doc 1:D: 608409680001 Tvoe: REL Recorded: Q4/22/2005 at 11:22:17 AM Fee Amt; $8.00 Paae I of I Washinaton County. AR Bett! Stamps Circuit Clerk Flle2005-00017153 Lot Numbered Fifteen (15) in Block Twenty-eight (28) as designated upon the original plat of the Town of Fayetteville, Arkansas, now on file in the office of the Circuit Clerk and Ex -Officio Recorder Washington County, Arkansas, except a strip of equal and uniform width of One (1) foot off the West side thereof. TO HAVE AND TO HOLD the said lands and appurtenances thereunto belonging unto the said Grantee and Grantee's successors and assigns, forever. And the said Grantors, hereby covenant that they are lawfully seized of said lands and premises; that the same is unencumbered, and that the Grantors will forever warrant and defend the title to the said lands against all legal claims whatever. WITNESS the execution hereof on this Ae5 day of April, 2005. Marjorie . iblock ACKNOWLEDGMENT STATE OF ARKANSAS ss. COUNTY OF _ BE IT REMEMBE E .that on this date, before the undersigned, a duly commissioned and acting Notary Public within and for said County and Stat , :Pat appeared Marjorie H. Niblock, surviving spouse of Walter R. Niblock, deceased, to me well known as the person who executed the foregoing document, and who stated and acknowledged that she had so signed, executed and delivered said instrument for the consideration, uses and purposes therein mentioned and set forth. :1"it C` 1:' •I -I 1 A. Settlement Statement U.S. Department of Housing -I 1 and Urban Development OMB No. 2502-0265 B. Type of Loan 1.0 FHA 2.0 FmHA 3.®Conv. Unins. 4.0 VA 5.0 Cony. Ins. 6. File Number 111-039 7. Loan Number 8. Mortgage Insurance Case Number C. Note: This form is furnished to give you a statement of actual settlement costs. Amounts paid to and by the settlement agent are shown. Items marked '(p.o.c.)' were paid outside the closing; they are shown here for information purposes and are not included in the totals. D. Name and Address of Borrower City of Fayetteville Fayetteville, Ar 72701 E. Name and Address of Seller Marjorie H. Niblock P.O. Box 182 Fayetteville. Ar 72702 F. Name and Address of Lender CASH G. Property Location 20 E. Mountain Fayetteville, Ar 72701 H. Settlement Agent Professional Land Title Company Place of Settlement 2713 S.E. I St., Ste 7 Bentonville, AR 72712 1. Settlement Dale 0420/05 DD: J. SUMMARY OF BORROWER'S TRANSACTION: K. SUMMARY OF SELLER'S TRANSACTION: 100. GROSS AMOUNT DUE FROM BORROWER 400. GROSS AMOUNT DUE TO SELLER 101. Contract sales prIce 500,000.00 401. Contract sales pike 500,000.00 102. Personal property402. Personal property 103. Settlement charges to borrower (line 1400) 333.00 403. 104. 404. 105. 405. Adjustments for Items paid by seller in advance Adjustments for items paid by seller In advance 106. CI /town taxes' to 408. CI /town taxes to 107. County taxes to 407. County taxes to 108. Assessments' to 408. Assessments to 109. 409. 110. 410. ill. 411. 112. 412. 120. GROSS AMOUNT DUE FROM BORROWER 500,333.00 420. GROSS AMOUNT DUE TO SELLER 500,000.00 200. AMOUNTS PAID BY OR IN BEHALF OF BORROWER 500. REDUCTIONS IN AMOUNT TO SELLER 201. Deposit or earnest money 501. Excess Deposit (see Instuctions) 202. Principal amount of new loan(s) 502. Settlement charges to seller (line 1400) 1,372.75 203. Second Mortgage 503. Second Mortgage 204, 504. Payoff of first mortgage loan 205. 505. Payoff of second mortgage loan 206. 506. 207. 507. 208. 508. 209. 509. Adjustments for items unpaid by seller Adjustments for items unpaid by seller 210. CI /town taxes 01/01 to 0420 969.97 510. CI /town taxes 01/01 to 0420 969.97 211. Court taxes to 511. Coup taxes to 212. Assessments to 512. Assessments to 213. 513. 214. 514.2004 RE Taxes #765-01939-000 - 3,218.54 215. 515. 216. 516. 217. 517. 218. 518. 219. 519. 220. TOTAL PAID BY I FOR BORROWER 969.97 520. TOTAL REDUCTION AMOUNT DUE SELLER 5,561.26 300. CASH AT SETTLEMENT FROM OR TO BORROWER 600. CASH AT SETTLEMENT TO OR FROM SELLER 301. Gross amount due from borrower (line 120) 500,333.00 601. Gross amount due to seller (line 420) 500.000.00 302. Less amounts paid by/for borrower (line 220) 969.97 602. Less reduction amount due to seller (line 520 5.561.26 303. CASH FROM BORROWER 499.363.03 603. CASH TO SELLER 494,438.74 RESPA, NB 4305.2- REV. HUD1(3/86) U.S. DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT SETTLEMENT STATEMENT PAGE 2 L. SETTLEMENT CHARGES: File Number. 111-039 PAID FROM BORROSWER'S FUNDAT SETTLEMENT PAID FROM SELLER'S FUNDS AT SETTLEMENT 700. TOTAL SALESIBROKER'S COMMISSION based on price $ C = Division of commission (line 700) as follows: 701. $ to 702. $ to 703. Commission paid at Settlement 704. 800. ITEMS PAYABLE IN CONNECTION WITH LOAN P.O.L. 801. Loan On Ination Fee % 802. Loan Discount % 803. Appraisal Fee to 804. Credit Report to 805. Lender's Inspection Fee to 806. MIQ. Ins. Ap�4ication Fee to 807. ro 808. 809. 810. 811. 812, 813, 814. 815, 900. ITEMS REQUIRED BY LENDER TO BE PAID IN ADVANCE 901. Interest from to@5 /da 902. Mo e e Insurance Premium to 903. HazardInsurance Premium . to 904. 905. 1000. RESERVES DEPOSITED WITH LENDER FOR 1001. Hazard Insurance no. $ /Mo. 1002. Mortgage Insurance Mo. $ / mo. 1003. CIty propertytaxes Mo. $ / mo. 1004. Coon taxes Mo. $ / Mo. 1005. Annual Assessments mo. $ / mo. 1006. Mo. s I Coo. 1007. Mo. $ I no. 1008. Aggregate Reserve for Hazard/Flood Ins. CIty/County Prop Taxes, Mortgage Ins & Annual Assessments 1100. TITLE CHARGES 1101. Settlement or closin fee to ProLand Two 200.00 200.00 1102. Abstractor title search to ProLand Title 125.00 125.00 1103. Title examinalon to 1104. Title Insurance binder to 1105. Document preparation to 1106. Notary fees to 1107. Attome sfees to Includes above Item No: 1108. Title Insurance to ProLand rile 1,047.75 Includes above Item No: 1109. Lenders coverage 1110. Owners overage 500,000.00 - $1397.00 Less 25% 1111. 1112. 1113. Releasd ntServices Fee 1200. GOVERNMENT RECORDING AND TRANSFER CHARGES 1201. Recordln fees Deeds 8.00 e $ ; Releases $ 8.00 1202. CI/county/stamps Deed $ ; Mortgage $ 1203. State tax/stam Deeds ; Mo a e $ 1204. - 1205. 1300. ADDITIONAL SETTLEMENT CHARGES 1301. Survey to 1302. Past Inspection to 1303. 1304. 1305. 1306. 1307, 1308. 1400. TOTAL SETTLEMENT CHARGES (enter on lines 103 and 502, Sections J and K) 333.00 1.372.75 RESPA. HG 4305.2 - REV. HUDI(3/86) File No: 111-039 BORROWERS HUD -1 CERTIFICATION I have carefully reviewed the HUD -1 Settlement Statement and to the best of my knowledge and belief, it is a true and accurate statement of all receipts and disbursements made on my account or by me in this transaction. I further certify that I have received a copy of the HUD -1 Settlement Statement. SELLER'S AND/OR PURCHASER'S STATEMENT: Seller's and Purchaser's signature hereon acknowledges his/their approval oftax proration and signifies theirunderstandingthat proration were based on taxes for the proceeding year, or estimates for the current year, and in the event of any change for the current year, all necessary adjustments must be made between Seller and Purchaser; likewise any default in delinquent taxes will be reimbursed to Title Company by the Seller. Title Company, in its capacity as Escrow Agent, is and has been authorized to deposit all funds it receives in this transaction in any financial institution, whether affiliated or not. Such financial institution may provide Title Company computer accounting and audit services directly or through a separate entity which, if affiliated with Title Company, may charge the financial institution reasonable and proper compensation therefore and retain any profits therefrom. Any escrow fees paid by any party involved in this transaction shall only be for check writing and input to the computers, but not for aforesaid accounting and audit services. Title Company shall not be liable for any interest or other charges on the earnest money and shall be under no duty to invest or reinvest funds held by it at any time. Sellers and Purchasers hereby acknowledge and consent to the deposit of the escrow money in financial institutions with which Title Company has or may have other banking relationships and further consent to the retention by Title Company and/or its affiliates of any and all benefits (including advantageous interest rates on loans) Title Company and/or its affiliates may receive from such financial institutions by reason of their maintenance of said escrow accounts. The parties have read the above sentences, recognize that the recitations herein are material, agree to same and recognize Title Company is relying on the same. Marjorie Niblock SELLER To the best of my knowledge the HUD -1 Settlement statement which I have prepared is a true and accurate account of the funds which were received and have been or will be disbursed by the undersigned as part of the settlement of this transaction. Professional Land Tide Company Date: April 20, 2005 Settlement Agent WARNING: It is a crime to knowingly make false statements to the United States on this or any other similar form. Per}alties upon conviction can include a fine and imprisonment. For detail see: Title 18: U.S. Code Section 1001 and Section 1010. Parcel No. 765-01939-000 WARRANTY DEED BE IT KNOWN BY THESE PRESENTS: THAT WE, Marjorie H. Niblock, surviving spouse of Walter R. Niblock, deceased, hereinafter called GRANTOR, for and in consideration of the sum of One Dollar ($1.00) and other good and valuable consideration, the receipt of which is hereby acknowledged, do hereby grant, bargain, sell and convey unto the City of Fayetteville, Arkansas, a municipal corporation, hereinafter called GRANTEE, and unto Grantee's successors and assigns, the following described land situated in the County of Washington, State of Arkansas, to -wit: Lot Numbered Fifteen (15) in Block Twenty-eight (28) as designated upon the original plat of the Town of Fayetteville, Arkansas, now on file in the office of the Circuit Clerk and Ex -Officio Recorder Washington County, Arkansas, except a strip of equal and uniform width of One (1) foot off the West side thereof. TO HAVE AND TO HOLD the said lands and appurtenances thereunto belonging unto the said Grantee and Grantee's successors and assigns, forever. And the said Grantors, hereby covenant that they are lawfully seized of said lands and premises; that the same is unencumbered, and that the Grantors will forever warrant and defend the tide to the said lands against all legal claims whatever. WITNESS the execution hereof on this Jp day of April, 2005. ACKNOWLEDGMENT STATE OF ARKANSAS SS. COUNTY OF ) BE IT REMEMBE E that on this date, before the undersigned, a duly commissioned and acting Notary Public within and for said County and Stat rsonally appeared Marjorie H. Niblock, surviving spouse of Walter R. Niblock, deceased, to me well known as the person who executed the foregoing document, and who stated and acknowledged that she had so signed, executed and delivered said instrument for the consideration, uses and purposes therein mentioned and set forth. WITNESS my hand and seal on this day of April, 2005. OWKIML SEAL MY COMMISSION EXPIF WASHINGTON COUNTY Notary Public onmnamgtQ File No: 111-039 NOTICE AND WAIVER OF OWNER'S TITLE INSURANCE TO: City of Fayetteville DATE: April 20, 2005 BUYING PROPERTY IDENTIFIED AS: 20 E. Mountain Fayetteville, Ar 72701 Pursuant to the Regulations of the Department of Commerce and Insurance of the State of Arkansas notice is hereby given that MORTGAGEE'S TITLE INSURANCE policy is to be issued to your mortgage leader, that such policy DOES NOT AFFORD TITLE INSURANCE PROTECTION TO YOU IN THE EVENT OF A DEFECT OR CLAIM OF DEFECT IN TITLE TO THE REAL ESTATE WHICH YOU ARE ACQUIRING (SUCH AS UNPAID BILLS FOR LABOR AND MATERIAL, FORGERY, MISSING HEIRS OR TAX LIENS), and that an owner's title insurance policy in your favor for the amount of your purchase price (or for the amount of your purchase price plus the cost of any improvements which you anticipate making) may be purchased. Departmental Regulations require that you sign the statement below if you do not wish to purchase this protection. This is to certify that we have received the foregoing notice and waive our right to purchase an owner's title insurance policy for our protection. We acknowledge that Professional Land Title Company and shall have no responsibility to us for the status of the title to the real estate which we are acquiring. DATE: April 20, 2005 CLOSER'S CERTIFICATE As evidence of compliance with Departmental Rule 0780-1-12-.10, Department of Commerce Insurance, State of Arkansas, I certify to the above title company that the foregoing NOTICE AND WAIVER was read by the Mortgagor(s) in my presence and that the WAIVER was signed by the Mortgagor(s) in my presence.. Professional Land Title Company Cl in Age t File No: 111-039 "OWNER'S AFFIDAVIT" AFFIDAVIT AND INDEMNITY AGREEMENT AS TO LEASES, CONTRACTS, FIXTURES, ENCUMBRANCES, MECHANICS' LIENS, ETC. STATE OF: ARKANSAS COUNTY OF: Washington Before me, the undersigned Notary Public in and for said County and State, personally appeared Marjorie H. Niblock, known to me and being first duly sworn, deposes and says: 1. That he/she owns the real property in Washington County, Ar; known municipally or referenced as follows: To wit 20 E. Mountain, Fayetteville, Ar 72701 Lot 15 Exc. WI Ft. Bilk 28 Fay. Original 2. That said owner is in possession of said property, and the following is a list of all tenants with rental terms: NAME DATE FROM DATE TO NONE 3. That all indebtedness due anyone for labor, materials, or service which might be liens on said property are fully paid. 4. That no security interest under the Uniform Commercial Code has been perfected against the improvements. 5. That there are: nojudgments, pending litigation, executions or attachments in or from any court affecting said property of said owner(s). . 6. That no bankruptcy proceeding in any Federal Court has been filed against or by any owner of said property. There is no outstanding contract of sale, conveyance or encumbrance affecting said property, except: NONE 7. That all persons who have executed or will execute instruments conveying or encumbering said property are at least 18 years old and are free from legal disability. 8. That the undersigned makes this statement for the express purposes of inducing: FIRST AMERICAN TITLE INSURANCE CORPORATION to insure title to said property to be free from adverse claims or liens not otherwise herein stated, and of enabling said owner(s) to receive the consideration for sale, lease or mortgage of said property. Affiant guarantees and warrants the statements of fact herein, which shall be construed as a continual contractual obligation in favor of said companies. 9. That in consideration of the issuance of title insurance by said companies as aforesaid, the undersigned agrees to indemnify and hold harmless the above indicated title insurance company against all loss or expense on account of any matter or thing omitted from the foregoing factual statement, including expense of enforcing this agreement. 10.That undersigned's United States Taxpayer Identification Number is /l31- Sn -e9/b and my United States address is P.O. Box 182, Fayetteville, Ar 72702 11. That undersigned is not a "foreign person" as the term is defined in Section 1445 of the Internal Revenue Code. By: at S. a Y: A" 'Irk '• 9' Date: April 20, 2005 Re: 20 E. Mountain, Fayetteville, Ar 72701 l/We, the undersigned, do hereby state that Uwe understand that the taxes for the year 2004 are due in March 2005, are not yet payable and the amount collected at closing has not been certified by the Tax Collector. Therefore, should the amount increase Uwe will be responsible for reimbursing the buyer of any shortages, within 10 calendar days ofnotification Should the amount decrease 1/we will be responsible for refunding the seller the difference within 10 calender days of notification. Sign d sealed y of L! lOwif2 .2005. ity of Fayetteville larjorie H. Niblock State of Arkans County of 0 I. AND • - t t ' • : "ua . a:. 1:. : k�'ll ' ' Agents File No. 111-039 EXHIBIT A - LEGAL DESCRIPTION Lot Numbered Fifteen (15) in Block Twenty -Eight (28) as designated upon the original plat of the Town of Fayetteville, Arkansas, now on file in the Office of the Circuit Clerk and Ex -Officio Recorder of Washington County, Arkansas, except a strip of equal and uniform width of One (1) foot off the West side thereof. DATA SHEET REAL ESTATE 1099-S THIS FORM MUST BE FILLED OUT BY THE TRANSFEROR/SELLOR THE INFORMATION CONTAINED ONTHIS FORM IS IMPORTANTTAX INFORMATION AND IS BEING FURNISHED TO THE INTERNAL REVENUE SERVICE As the Transferor/Seller YOU are required by law to provide your correct taxpayer identification number. If your correct taxpayer identification number is not provided, you maybe subject to civil orcrinlinal penalties imposed by law. Under penalties of perjury, I certify that the Taxpayer Identification Number shown on this statement is the correct Taxpayer Identification Number. Also, I understand that IT IS THE RESPONSIBILITY of the Transferor/Seller to report any and all proceeds received from this sale. 7f C rf� 'f3l-S� -891.6 Marj H. Niblock SS# or Tax ID SS# or Tax ID Only one Form 1099 is required if the transferor is husband and wife or a partnership. FOR MULTIPLE TRANSFERORS: A SEPARATE FORM 1099-S MUST BE COMPLETED FOR EACH TRANSFEROR RECEIVING PROCEEDS FROM SALE OF REAL ESTATE In order to insure filing, it is extremely important that you provide us with the following information. If incorrect information is provided Professional Land Title Company of Arkansas, Inc. is responsible for the misfiling of this report. PLEASE PRINT: TRANSFEROR NAME 1: Marjorie H. Niblock TRANSFEROR NAME 2: ADDRESS WHERE YOU WISH FOR 1099 TO BE MAILED: ��----22 Street: R oe AAt" l �a- Ci zZtc&t& ,9,- 7170 e PLEASE CONSULT YOUR CPA FOR INFORMATION REGARDING THE FILING OF THIS REAL ESTATE - SALE TO IRS. DO NOT FILL OUT THIS SECTION Description of Property 20 E. Mountain Property Address of 20 E. Mountain, Fayetteville,Arkaasas72701 Contract Sales Price: $500,000.00 Net proceeds: Closing Date: April 20, 2005 Date: April 20, 2005File No. CLOSING AGENT INFORMATION (to be completed by dosing agent) Professiwul land Tide Company of AR. Inc. 809 West 3rd Steel Mule Rock, Arkansas 72201 (50le A CHOICE OF ATTORNEY (Broker / Lender) has informed me (us) that I (we) have the option of choosing (legal counsel / title company) to close my mortgage loan. I (we) understand that said le al counsel shall represent the Broker/Lender at the closing. X ) I (We) select: G ` Attorney / Title Company ( ) I (We) having been informed of this option and having no preference, I (We) have reviewed the Broker / Lender's list of approved closing attorneys / title companies, I (We) have selected: Attorney / Title Company ( ) I (We) acknowledge that I (We) have been giving the opportunity to select an attorney / title company to close my (our) mortgage loan. I (We) have no preference regarding closing attorney / title company and choose not to select one. Appl' t Date Witness Date Co -Applicant Date Witness Date rATIO2 5 sad.'. A Cumlum First American Title Insurance Company COMMITMENT SCHEDULE A Issued by: Professional Land Title Company of Arkansas 809 West 3rd Little Rock, AR 72201 (501) 661-1701 Issuing Agent # IA20 Agents File No.111-039 Commitment No. 00 -BV 10449 Amount TYPE OF POLICY: ALTA Owners Policy TBD Effective Date of this commitment: April 8, 2005 at 8:00 a.m. NAME OF PRESENT OWNER: Marjorie H. Niblock, surviving spouse of Walter Niblock NAME OF PURCHASER: City of Fayetteville LEGAL DESCRIPTION OF THE LAND REFERRED TO IN THIS COMMITMENT: Lot Numbered Fifteen (15) In Block Twenty -Eight (28) as designated upon the original plat of the Town of Fayetteville, Arkansas, now on file in the Office of the Circuit Clerk and Ex -Officio Recorder of Washington County, Arkansas, except a strip of equal and uniform width of One (1) foot off the West side thereof. April 12, 2005 Pro siona and Title Company of Arkansas B igning Agents Sherry K Woosley 20-01 Michael P. Ragsdale, SA20-02 Brian A. Perry, SA20-03 Washington County Property Address: 20 E. Mountain, Fayettevie, Ar 72701 First American Title Insurance Company COMMITMENT FOR TITLE INSURANCE a California corporation, herein called the Company, for a valuable consideration, hereby commits to issue its policy or policies of title insurance, as identified in Schedule A, in favor of the proposed Insured named Schedule A, as owner or mortgagee of the estate or interest covered hereby in the land described or referred to in Schedule A, upon payment of the premiums and charges therefor, all subject to the provisions of Schedules A and B and to the Conditions and Stipulations hereof. This Commitment shall be effective only when the identity of the proposed Insured and the amount of the policy and policies committed for have been inserted in Schedule A hereof by the Company, either at the time of the issuance of this Commitment or by subsequent endorsement This Commitment is preliminary to the issuance of such policy or policies of title insurance and all liability and obligations hereunder. shall cease and terminate six months after the effective date hereof or when the policy or policies is not the fault of the Company. This Commitment shall not be valid or binding until countersigned below by the Validating Officer or Agent. IN WITNESS WHEREOF, First American Title Insurance Company has caused its corporate name and seal bo be hereunto affixed by its duly authorized officers on the date shown in Schedule A First American Title Insurance Company /S/Mark R. Arneson Secretary /S/ Parker S. Kennedy President CONDITIONS ANDSTIPULATIONS 1. The term mortgage, when used herein, shall include deed of u4st, trust deed, or other security instrument 2. If the proposed Insured has or acquires actual knowledge of a y defect, lien, encumbrance, adverse claim or other matter affecting the estate or interest or mortgage thereon covered by his Commitment other than those shown in Schedule B hereof, and shall fail to disclose such knowledge to the Comp4ny in writing, the Company shall be relieved from liability for any loss or damage resulting from any act of reliance hereon t4 the extent the Company is prejudiced by failure to so disclose such knowledge. If the proposed Insured shall disclose such 14iow1edge to the Company or if the Company otherwise acquires actual knowledge of any such defect, lien, entomb , adverse claim or other matter, the Company at its option may amend Schedule B of this Commitment accordingly, but 4zch amendment shall not relieve the Company from liability previously incurred pursuant to Paragraph 3 of the Conditions nd stipulations. 3. Liability of the Company under this Commitment shall be only to the named proposed Insured and such parties included under the definition of Insured in the form of policy or policies committed for and only for actual loss incurred in reliance hereon in undertaking in good faith (a) to comply with the requirements hereof, or (b) to eliminate exceptions shown in Schedule B, or (c) to acquire or created the estate of interest or mortgage hereon covered by this Commitment In no event shall such liability exceed the amount stated in Schedule A for the policy or policies committed for and such liability is subject to the insuring provisions and the Conditions and Stipulations, and the exclusions from coverage of the form of policy or policies committed for in favor of the proposed Insured which are hereby incorporated by reference and are made a part of this Commitment except as expressly modified herein. 4. Any action of actions or rights of action that the proposed Insured may have or may bring against the Company arising out of the status of the title to the estate or interest to the starts of the mortgage thereon covered by this Commitment must be based on and are subject to the provisions of this Commitment. FATIL301-M SOIEEU1E B. PMT' fCIMFNF First American Title Insurance Company COMMITMENT SCHEDULE B -PART I Agents File No. 111-039 Commitment No, 00 -BV 10449 .REQUIREMENTS Showing defects and objections to be removed or eliminated; liens and encumbrances to be satisfied and discharged of record and requirements to be complied with before policy of title insurance can be issued without exception thereto: 1. Proper documents creating the estate or interest to be insured must be executed and duly filed for record to wit: Execution and recordation without intervening rights of a warranty deed by Marjorie H. Niblock, surviving spouse of Walter Niblock conveying the property described in schedule "A" hereof to City of Fayetteville. 2. Full consideration for the interest or estate to be insured must be paid to or for the account of grantors or mortgagors. 3. Furnish satisfactory evidence that there are no outstanding mechanics' or materialmen's liens against the property (Attorney should examine parties carefully, and attach owners' and contractors' affidavits where there has been construction during the statutory period for liens. 4. Payment of all taxes, charges, assessments levied and assessed against subject property, which are due and payable. 5. Execution of an Owner' and Contractor's Final Affidavit, Owner's and Seller's Affidavit & Indemnity and Notice of Availability of Owner's Title Insurance in all forms acceptable to the Company. 6. Payment of the premium and other foes and costs due the company. 7. This company will provide an ALTA 8.1 endorsement on the final policy. FAT1O202-M SCHEWIE & PART 11, CUMAarMrNr First American Title Insurance Company SCHEDULE B PART II Agent File No.: 111-039 Commitment No.: 00 -By 10449 EXCEPTIONS Part II Schedule B of the policy or policies to be issued will contain exceptions o the following matters unless the same are disposed of the satisfaction of the Company: 1. Defects, liens, encumbrances, adverse claims or other matter, if any, created first appearing in the public records or attaching subsequent to the effective date hereofbut prior to the date the proposed insured acquires for value of record the estate or interest or mortgage thereon covered by this Commitment. 2. Rights or claims of parties in possession not shown by the public records. 3. Easements, or claims of easements, not shown by the public records. 4. Encroachments,overlaps, boundary line disputes, or other matters which would be disclosed by an accurate surveyor inspection of the premises. 5. Any lien, or right to alien, for services, labor, or material heretofore or hereafter Famished, imposed bylaw and not shown by the public records. 6. Any adverse claim to any portion of said land which has been created by artificial means or has accreted to any such portion so created and riparian rights, if any. 7. Taxes or special assessments which are not shown as existing liens by public records. 8. Any prior reservation or conveyance, together with release of damages, of minerals of every kind and character, including, but not limited to oil, gas, sand, and gravel in or on and under subject property. 9. General and special taxes for 2004 and subsequent years not yet due and payable. 10. Subject to all rights of ways, easements, building lines, covenants, or restrictions and all reservations of record or any other of the same, that a physical inspection or survey might disclose. 11. Covenants or Restrictions other than city or county ordinances, but deleting any covenant, condition or restriction indicating a preference, limitation or discrimination based on race, color, religion, sex, handicap, familial status, or national origin to the extent such covenants, conditions or restrictions violate 42 USC 3604(c): 12. Reservations, restrictions, dedications, easements, right-of-wayand setbacklines as maybe shown on the platofsaid Fayetteville Original, recorded in plat record Book 4 at Page 3. Assessments, obligations, fees, reservations, restrictions, easements, dedications, rights -of -way, setback lines, covenants and conditions, as contained in the Restrictive/Protective Covenants and/or Bill of Assurance of Fayetteville Original, if any. TAX REPORT PARCEL NUMBER: 765-01939-000 (General Taxes) PROPERTY ADDRESS THIS TRANSACTION: 20 E. Mountain (Street Address) Fayetteville, AR 72701 (City) (State) (Zip) LEGAL DESCRIPTION: Lot Numbered Fifteen (15) in Block Twenty -Eight (28) as designated upon the original plat of the Town of Fayetteville, Arkansas, now on file in the Office of the Circuit Clerk and Ex -Officio Recorder of Washington County, Arkansas, except a strip of equal and uniform width of One (1) foot off the West side thereof. GENERAL TAXES FOR THE YEAR: 2004 Real Property Taxes, which are now due and payable as follows: Parcel Number: 765-01939-000 Amount Due: $3,218.54 Valuation: $62,062.00 Millage Rate: .05186 School District: Ol 1 Taxes are due March 1st of every year and delinquent if paid after October 10th of every year. SPECIAL ASSESSMENTS FOR THE YEAR: NONE THIS PROPERTY IS EMBRACED WITHIN THE BOUNDS OF THE FOLLOWING SPECIAL IMPROVEMENTS DISTRICTS: ADDITIONAL ASSESSMENTS: NONE BORROWER(S): City of Fayetteville LENDER: Cash DATE: April 12, 2005 PROFESSIONAL LAND TITLE COMPANY OF ARKANSAS By: Author z Agent \iPRO LAND T I T L E n�• -. ...__, ._ ... _ .. A. Settlement Statement U.S. Department of Housing -I r and Urban Development OMB No. 2502-0265 of B. Type of Loan 1.O FHA 2.O FmHA 3.®Conv. Unins. 4.O VA 5.D Cony. Ins. 6. File Number 111-039 7. Loan Number 8: Mortgage Insurance Case Numbery7 C. Note: This form is furnished to give you a statement of actual settlement costs. Amounts paid to and by the settlement agent are shown. Items marked "(p.o.c.)" were paid outside the closing; they are shown here for information purposes and are not included In the totals. 7n D. Name and Address of Borrower City of Fayetteville Fayetteville, Ar 72701 E. Name and Address of Seller Marjorie H. Niblock P.O. Box 182 Fayetteville, Ar 72702 L F. Name and Address of Lender N1 bl CASH G. Property Location 20 E. Mountain Fayetteville, Ar 72701 H. Settlement Agent Professional Land Title Company Place of Settlement 2713 S.E. I St., Ste 7 Bentonville, AR 72712 I. Settlement Date 04/20/05 DD: J. SUMMARY OF BORROWER'S TRANSACTION: K. SUMMARY OF SELLER'S TRANSACTION: 100. GROSS AMOUNT DUE FROM BORROWER 400. GROSS AMOUNT DUE TO SELLER 101. Contract sales price 500,000.00 401. Contract sales price 500,000.00 102. Personal property402. Personal property 103. Settlement charges to borrower (line 1400) 333.00 403. 104. 404. 105. 405. Adjustments for Items paid by seller in advance Adjustments for Items paid by seller In advance 106. CI /town taxes to 406. CI /town taxes to 107. County taxes to 407. County taxes to 108. Assessments to 408. Assessments to 109. 409. 110. 410. 111. 411. 112. 412. 120. GROSS AMOUNT DUE FROM BORROWER 500,333.00 420. GROSS AMOUNT DUE TO SELLER 500,000.00 200. AMOUNTS PAID BY OR IN BEHALF OF BORROWER 500. REDUCTIONS IN AMOUNT TO SELLER 201. Depositor earnest money 501. Excess Deposit (see instructions) 202. Principal amount of new loan(s) 502. Settlement charges to seller (line 1400) 1,372.75 203. Second Mortgage 503. Second Mortgage 204. 504. Payoff of first mortgage loan 205. 505. Payoff of second mortgage loan 206. 506. 207. 507. 208. 508. 209. 509. Adjustments for Items unpaid by seller Adjustments for Items unpaid by seller 210. City/town taxes 01/01 to 04/20 969.97 510. City/town taxes 01/01 to 04/20 969.97 211. County taxes to 511. County taxes to 212. Assessments to 512. Assessments to 213. 513. 214. 514.2004 RE Taxes #765-01939-000 3,218.54 215. 515. 216. 516. 217. 517. 218. 518. 219. 519. 220. TOTAL PAID BY! FOR BORROWER 969.97 520. TOTAL REDUCTION AMOUNT DUE SELLER 5,561.26 300. CASH AT SETTLEMENT FROM OR TO BORROWER 600. CASH AT SETTLEMENT TO OR FROM SELLER 301. Gross amount due from borrower (line 120 500,333.00 601. Gross amount due to seller (line 420 500,000.00 302. Less amounts paid by/for borrower (line 220 969.97 602. Less reduction amount due to seller line 520 5,561.26 303. CASH FROM BORROWER 499,363.03 603. CASH TO SELLER 494,438.74 RESPA, HB 4305.2 - REV. HUD1(3/86) U.S. DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT SETTLEMENT STATEMENT PAGE 2 L. SETTLEMENT CHARGES: File Number: 111-039 PAID FROM BROROWER'S FUNDS AT SETTLEMENT PAID FROM SELLER'S FUNDS AT SETTLEMENT 700. TOTAL SALES/BROKER'S COMMISSION based on price $ = Division of commission (line 700) as follows: 701. $ to 702. $ to 703. Commission paid at Settlement 704. 800. ITEMS PAYABLE IN CONNECTION WITH LOAN P.O.C. 801. Loan Origination Fee 802. Loan Discount % 803. Appraisal Fee to 804. Credit Report to 805. Lenders Inspection Fee to 806. Mtg. Ins. Application Fee to 807. to 808. 809. 810. 811. 812. 813. 814. 815. 900. ITEMS REQUIRED BY LENDER TO BE PAID IN ADVANCE 901. Interest from to $ /day 902. Mortgage Insurance Premium to 903. Hazard Insurance Premium yrs. to 904. 905. 1000. RESERVES DEPOSITED WITH LENDER FOR 1001. Hazard Insurance mo. $ / mo. 1002. Mortgage Insurance mo. $ / mo. 1003. City roe taxes mo. $ / mo. 1004. County ro erttaxes mo. @$ / mo. 1005. Annual Assessments mo. $ / mo. 1006. mo. $ / mo. 1007. mo. $ / mo. 1008. Aggregate Reserve for Hazard/Flood Ins, City/CountyCity/County Prop Taxes, Mortgage Ins & Annual Assessments 1100. TITLE CHARGES 1101. Settlement or dosing fee to Pro Land Title 200.00 200.00 1102. Abstract or title search to Pro Land Title 125.00 125.00 1103. Title examination to 1104. Title Insurance binder to 1105. Document preparation to 1106. Notary fees to 1107. Attorney's fees to includes above item No: 1108. Tide insurance to Pro Land Title 1,047.75 (includes above item No: 1109. Lenders coverage 1110. Owners coverage 500,000.00 - $1397.00 Less 25% 1111. 1112. 1113. Release/Assignment Services Fee 1200. GOVERNMENT RECORDING AND TRANSFER CHARGES 1201. Recording fees Deed $ 8.00 ; Mortgage $ ; Releases $ 8.00 1202. City/county/stamps Deed $ ; Mortgage $ 1203. State tax/stamps Deed $ ; Mortgage $ 1204. - 1205. 1300. ADDITIONAL SETTLEMENT CHARGES 1301. Survey to 1302. Pest inspection to 1303. 1304. 1305. 1306. 1307. 1308. 1400. TOTAL SETTLEMENT CHARGES (enter on lines 103 and 502, Sections J and K) 333.00 1,372.75 RESPA, FIB 4305.2 - REV. HUD1(3/86) File No: 111-039 HUD -1 CERTIFICATION I have carefully reviewed the HUD -I Settlement Statement and to the best of my knowledge and belief, it is a true and accurate statement of all receipts and disbursements made on my account or by me in this transaction. I further certify that I have received a copy of the HUD -1 Settlement Statement. SELLER'S AND/OR PURCHASER'S STATEMENT: Seller's and Purchaser's signature hereon acknowledges his/their approval of tax prorations and signifies their understanding that prorations were based on taxes for the proceeding year, or estimates for the current year, and in the event of any change for the current year, all necessary adjustments must be made between Seller and Purchaser; likewise any default in delinquent taxes will be reimbursed to Title Company by the Seller. Title Company, in its capacity as Escrow Agent, is and has been authorized to deposit all funds it receives in this transaction in any financial institution, whether affiliated or not. Such financial institution may provide Title Company computer accounting and audit services directly or through a separate entity which, if affiliated with Title Company, may charge the financial institution reasonable and proper compensation therefore and retain any profits therefrom. Any escrow fees paid by any party involved in this transaction shall only be for check writing and input to the computers, but not for aforesaid accounting and audit services. Title Company shall not be liable for any interest or other charges on the earnest money and shall be under no duty to invest or reinvest funds held by it at any time. Sellers and Purchasers hereby acknowledge and consent to the deposit of the escrow money in financial institutions with which Title Company has or may have other banking relationships and further consent to the retention by Title Company and/or its affiliates of any and all benefits (including advantageous interest rates on loans) Title Company and/or its affiliates may receive from such financial institutions by reason of their maintenance of said escrow accounts. The parties have read the above sentences, recognize that the recitations herein are material, agree to same and recognize Title Company is relying on the same. City of Fayetteville Marjorie H. Niblock BORROWERS SELLER To the best of my knowledge the HUD -1 Settlement statement which I have prepared is a true and accurate account of the funds which were received and have been or will be disbursed by the undersigned as part of the settlement of this transaction. Professional Land Title Company By: Date: April 20, 2005 Settlement Agent WARNING: It is a crime to knowingly make false statements to the United States on this or any other similar form. Penalties upon conviction can include a fine and imprisonment. For detail see: Title 18: U.S. Code Section 1001 and Section 1010. File No: 111-039 "OWNER'S AFFIDAVIT" AFFIDAVIT AND INDEMNITY AGREEMENT AS TO LEASES, CONTRACTS, FIXTURES, ENCUMBRANCES, MECHANICS' LIENS, ETC. STATE OF: ARKANSAS COUNTY OF: Washington Before me, the undersigned Notary Public in and for said County and State, personally appeared Marjorie H. Niblock, known to me and being first duly sworn, deposes and says: 1. That he/she owns the real property in Washington County, Ar; known municipally or referenced as follows: To wit: 20 E. Mountain, Fayetteville, Ar 72701 Lot 15 Exc. W 1 Ft. Blk 28 Fay. Original 2. That said owner is in possession of said property, and the following is a list of all tenants with rental terms: NAME DATE FROM DATE TO NONE 3. That all indebtedness due anyone for labor, materials, or service which might be liens on said property are fully paid. 4. That no security interest under the Uniform Commercial Code has been perfected against the improvements. 5. That there are no judgments, pending litigation, executions or attachments in or from any court affecting said property of said owner(s). 6. That no bankruptcy proceeding in any Federal Court has been filed against or by any owner of said property. There is no outstanding contract of sale, conveyance or encumbrance affecting said property, except: NONE 7. That all persons who have executed or will execute instruments conveying or encumbering said property are at least 18 years old and are free from legal disability. 8. That the undersigned makes this statement for the express purposes of inducing: FIRST AMERICAN TITLE INSURANCE CORPORATION to insure title to said property to be free from adverse claims or liens not otherwise herein stated, and of enabling said owner(s) to receive the consideration for sale, lease or mortgage of said property. Affiant guarantees and warrants the statements of fact herein, which shall be construed as a continual contractual obligation in favor of said companies. 9. That in consideration of the issuance of title insurance by said companies as aforesaid, the undersigned agrees to indenmify and hold harmless the above indicated title insurance company against all loss or expense on account of any matter or thing omitted from the foregoing factual statement, including expense of enforcing this agreement. 10.That undersigned's United States Taxpayer Identification Number is and my United States address is P.O. Box 182, Fayetteville, Ar 72702 11. That undersigned is not a "foreign person" as the term is defined in Section 1445 of the Internal Revenue Code. By: Marjorie H. Niblock By: Subscribed and sworn to before me this the 20th day of April, 2005. Notary Public My commission expires: File No: 111-039 NOTICE AND WAIVER OF OWNER'S TITLE INSURANCE TO: City of Fayetteville DATE: April 20, 2005 BUYING PROPERTY IDENTIFIED AS: 20 E. Mountain Fayetteville, Ar 72701 Pursuant to the Regulations of the Department of Commerce and Insurance of the State of Arkansas notice is hereby given that MORTGAGEE'S TITLE INSURANCE policy is to be issued to your mortgage lender, that such policy DOES NOT AFFORD TITLE INSURANCE PROTECTION TO YOU IN THE EVENT OF A DEFECT OR CLAIM OF DEFECT IN TITLE TO THE REAL ESTATE WHICH YOU ARE ACQUIRING (SUCH AS UNPAID BILLS FOR LABOR AND MATERIAL, FORGERY, MISSING HEIRS OR TAX LIENS), and that an owner's title insurance policy in your favor for the amount of your purchase price (or for the amount of your purchase price plus the cost of any improvements which you anticipate making) may be purchased. Departmental Regulations require that you sign the statement below if you do not wish to purchase this protection. This is to certify that we have received the foregoing notice and waive our right to purchase an owner's title insurance policy for our protection. We acknowledge that Professional Land Title Company and shall have no responsibility to us for the status of the title to the real estate which we are acquiring. DATE: April 20, 2005 City of Fayetteville By: CLOSER'S CERTIFICATE As evidence of compliance with Departmental Rule 0780-1-12-.10, Department of Commerce Insurance, State of Arkansas, I certify to the above title company that the foregoing NOTICE AND WAIVER was read by the Mortgagor(s) in my presence and that the WAIVER was signed by the Mortgagor(s) in my presence.. Professional Land Title Company Closing Agent Date: April 20, 2005 Re: 20 E. Mountain, Fayetteville, Ar 72701 I/We, the undersigned, do hereby state that I/we understand that the taxes for the year 2004 are due in March 2005, are not yet payable and the amount collected at closing has not been certified by the Tax Collector. Therefore, should the amount increase I/we will be responsible for reimbursing the buyer of any shortages, within 10 calendar days of notification Should the amount decrease Uwe will be responsible for refunding the seller the difference within 10 calender days of notification. Signed and sealed this day of City of Fayetteville State of Arkansas County of SIGNED AND SWORN before me this day of My Commission Expires: 2005. Marjorie H. Niblock 2005. Notary Public DATA SHEET REAL ESTATE 1099-S THIS FORM MUST BE FILLED OUT BY THE TRANSFEROR/SELLOR THE INFORMATION CONTAINED ON THIS FORM IS IMPORTANTTAX INFORMATION AND IS BEING FURNISHED TO THE INTERNAL REVENUE SERVICE As the Transferor/Seller YOU are required by law to provide your correct taxpayer identification number. If your correct taxpayer identification number is not provided, you maybe subject to civil or criminal penalties imposed by law. Under penalties of perjury, I certify that the Taxpayer Identification Number shown on this statement is the correct Taxpayer Identification Number. Also, I understand that IT IS THE RESPONSIBILITY of the Transferor/Seller to report any and all proceeds received from this sale. Marjorie H. Niblock SS# or Tax ID SS# or Tax ID Only one Form 1099 is required if the transferor is husband and wife or a partnership. FOR MULTIPLE TRANSFERORS: A SEPARATE FORM 1099-S MUST BE COMPLETED FOR EACH TRANSFEROR RECEIVING PROCEEDS FROM SALE OF REAL ESTATE *************************************************************************** In order to insure filing, it is extremely important that you provide us with the following information. If incorrect information is provided Professional Land Title Company of Arkansas, Inc. is responsible for the misfiling of this report. PLEASE PRINT: TRANSFEROR NAME 1: Marjorie H. Niblock TRANSFEROR NAME 2: ADDRESS WHERE YOU WISH FOR 1099 TO BE MAILED: Street: City: PLEASE CONSULT YOUR CPA FOR INFORMATION REGARDING THE FILING OF THIS REAL ESTATE SALE TO IRS. ****************************************************************************** DO NOT FILL OUT THIS SECTION Description of Property: 20 E. Mountain Property Address of 20 E. Mountain, Fayetteville, Arkansas 72701 Contract Sales Price: $500,000.00 Net proceeds: Closing Date: April 20, 2005 Date: April 20, 2005Fi1e No. CLOSING AGENT INFORMATION (to be completed by closing agent) Professional Land Title Company of AR, Inc. 809 West 3rd Street Little Rock, Arkansas 72201 (501)661-1701 Agents File No. 111-039 EXHIBIT A - LEGAL DESCRIPTION Lot Numbered Fifteen (15) in Block Twenty -Eight (28) as designated upon the original plat of the Town of Fayetteville, Arkansas, now on file in the Office of the Circuit Clerk and Ex -Officio Recorder of Washington County, Arkansas, except a strip of equal and uniform width of One (1) foot off the West side thereof. CHOICE OF ATTORNEY (Broker / Lender) has informed me (us) that I (we) have the option of choosing (legal counsel / title company) to close my mortgage loan. I (we) understand that said legal counsel shall represent the Broker/Lender at the closing. (� ) I (We) select: Attorney / Title Company ( ) I (We) having been informed of this option and having no preference, I (We) have reviewed the Broker / Lender's list of approved closing attorneys / title companies, I (We) have selected: Attorney / Title Company ( ) I (We) acknowledge that I (We) have been giving the opportunity to select an attorney / title company to close my (our) mortgage loan. I (We) have no preference regarding closing attorney / title company and choose not to select one. Applicant Witness Date Date Co -Applicant Date Witness Date FATIC.205 Schedule A, Commitment First American Title Insurance Company COMMITMENT SCHEDULE A Issued by: Professional Land Title Company of Arkansas 809 West 3rd Little Rock, AR 72201 (501) 661-1701 Issuing Agent # IA20 TYPE OF POLICY: ALTA Owners Policy Effective Date of this commitment: April 8, 2005 at 8:00 a.m. NAME OF PRESENT OWNER: Marjorie H. Niblock, surviving spouse of Walter Niblock NAME OF PURCHASER: City of Fayetteville LEGAL DESCRIPTION OF THE LAND REFERRED TO IN THIS COMMITMENT: Agents File No.111-039 Commitment No. 00 -BV 10449 Amount TBD Lot Numbered Fifteen (15) in Block Twenty -Eight (28) as designated upon the original plat of the Town of Fayetteville, Arkansas, now on file in the Office of the Circuit Clerk and Ex -Officio Recorder of Washington County, Arkansas, except a strip of equal and uniform width of One (1) foot off the West side thereof. April 12, 2005 Pro siona �.,Land Title Company of Arkansas s,7 0c11� `Signing Agents Sherry K Woosley, A20-01 Michael P. Ragsdale, SA20-02 Brian A. Perry, SA20-03 Washington County Property Address: 20 E. Mountain, Fayetteville, Ar 72701 First American Title Insurance Company COMMITMENT FOR TITLE INSURANCE a California corporation, herein called the Company, for a valuable consideration, hereby commits to issue its policy or policies of title insurance, as identified in Schedule A, in favor of the proposed Insured named Schedule A, as owner or mortgagee of the estate or interest covered hereby in the land described or referred to in Schedule A, upon payment of the premiums and charges therefor; all subject to the provisions of Schedules A and B and to the Conditions and Stipulations hereof. This Commitment shall be effective only when the identity of the proposed Insured and the amount of the policy and policies committed for have been inserted in Schedule A hereof by the Company, either at the time of the issuance of this Commitment or by subsequent endorsement. This Commitment is preliminary to the issuance of such policy or policies of title insurance and all liability and obligations hereunder shall cease and terminate six months after the effective date hereof or when the policy or policies is not the fault of the Company. This Commitment shall not be valid or binding until countersigned below by the Validating Officer or Agent. IN WITNESS WHEREOF, First American Title Insurance Company has caused its corporate name and seal bo be hereunto affixed by its duly authorized officers on the date shown in Schedule A First American Title Insurance Company /S/Mark R. Ameson /S/ Parker S. Kennedy Secretary President CONDITIONS AND STIPULATIONS 1. The term mortgage, when used herein, shall include deed of trust, trust deed, or other security instrument. 2. If the proposed Insured has or acquires actual knowledge of any defect, lien, encumbrance, adverse claim or other matter affecting the estate or interest or mortgage thereon covered by this Commitment other than those shown in Schedule B hereof, and shall fail to disclose such knowledge to the Company in writing, the Company shall be relieved from liability for any loss or damage resulting from any act of reliance hereon to the extent the Company is prejudiced by failure to so disclose such knowledge. If the proposed Insured shall disclose such knowledge to the Company or if the Company otherwise acquires actual knowledge of any such defect, lien, encumbrance, adverse claim or other matter, the Company at its option may amend Schedule B of this Commitment accordingly, but such amendment shall not relieve the Company from liability previously incurred pursuant to Paragraph 3 of the Conditions and stipulations. 3. Liability of the Company under this Commitment shall be only to the named proposed Insured and such parties included under the definition of Insured in the form of policy or policies committed for and only for actual loss incurred in reliance hereon in undertaking in good faith (a) to comply with the requirements hereof, or (b) to eliminate exceptions shown in Schedule B, or (c) to acquire or created the estate of interest or mortgage hereon covered by this Commitment. In no event shall such liability exceed the amount stated in Schedule A for the policy or policies committed for and such liability is subject to the insuring provisions and the Conditions and Stipulations, and the exclusions from coverage of the form of policy or policies committed for in favor of the proposed Insured which are hereby incorporated by reference and are made a part of this Commitment except as expressly modified herein. 4. Any action of actions or rights of action that the proposed Insured may have or may bring against the Company arising out of the status of the title to the estate or interest to the status of the mortgage thereon covered by this Commitment must be based on and are subject to the provisions of this Commitment. FATIC-201.M SCHEDULE B, PARTI COMMITMENT First American Title Insurance Company COMMITMENT SCHEDULE B -PART I Agents File No. 111-039 Commitment No. 00 -By 10449 REQUIREMENTS Showing defects and objections to be removed or eliminated; liens and encumbrances to be satisfied and discharged of record and requirements to be complied with before policy of title insurance can be issued without exception thereto: 1. Proper documents creating the estate or interest to be insured must be executed and duly filed for record to wit: Execution and recordation without intervening rights of a warranty deed by Marjorie H. Niblock, surviving spouse of Walter Niblock conveying the property described in schedule "A" hereof to City of Fayetteville. 2. Full consideration for the interest or estate to be insured must be paid to or for the account of grantors or mortgagors. 3. Furnish satisfactory evidence that there are no outstanding mechanics' or materialmen's liens against the property (Attorney should examine parties carefully, and attach owners' and contractorsaffidavits where there has been construction during the statutory period for liens. 4. Payment of all taxes, charges, assessments levied and assessed against subject property, which are due and payable. 5. Execution of an Owner' and Contractor's Final Affidavit, Owner's and Seller's Affidavit & Indemnity and Notice of Availability of Owner's Title Insurance in all forms acceptable to the Company. 6. Payment of the premium and other fees and costs due the company. 7. This company will provide an ALTA 8.1 endorsement on the final policy. FATIC-202-M SCHEDULE B. PART II, COMMITMENT First American Title Insurance Company COMMITMENT SCHEDULE B PART II Agent File No.: 111-039 Commitment No.: 00 -BV 10449 Part If Schedule B of the policy or policies to be issued will con in exceptions to the following matters unless the same are disposed of the satisfaction of the Company: I. Defects, liens, encumbrances, adverse claims or other matter, if any, created first appearing in the public records or attaching subsequent to the effective date hereof but prior to the date the proposed insured acquires for value of record the estate or interest or mortgage thereon covered by this Commitment. 2. Rights or claims of parties in possession not shown by the public records. 3. Easements, or claims of easements, not shown by the �.iblic records. 4. Encroachments, overlaps, boundary line disputes, or oth r matters which would be disclosed by an accurate surveyor inspection of the premises. 5. Any lien, or right to a lien, for services, labor, or material heretofore or hereafter furnished, imposed bylaw and not shown by the public records. 6. Any adverse claim to any portion of said land which has been created by artificial means or has accreted to any such portion so created and riparian rights, if any. 7. Taxes or special assessments which are not shown as existing liens by public records. 8. Any prior reservation or conveyance, together with release of damages, of minerals of every kind and character, including, but not limited to oil, gas, sand, and gravel in or on and under subject property. 9. General and special taxes for 2004 and subsequent years not yet due and payable. 10. Subject to all rights of ways, easements, building lines, covenants, or restrictions and all reservations of record or any other of the same, that a physical inspection or survey might disclose. I I . Covenants or Restrictions other than city or county ordinances, but deleting any covenant, condition or restriction indicating a preference, limitation or discrimination based on race, color, religion, sex, handicap, familial status, or national origin to the extent such covenants, conditions or restrictions violate 42 USC 3604(c): 12. Reservations,restrictions, dedications, easements, right-of-wayandsetback lines as maybe shown on the plat of said Fayetteville Original, recorded in plat record Book 4 at Page 3. Assessments, obligations, fees, reservations, restrictions, easements, dedications, rights -of -way, setback lines, covenants and conditions, as contained in the Restrictive/Protective Covenants and/or Bill of Assurance of Fayetteville Original, if any. TAX REPORT PARCEL NUMBER: 765-01939-000 (General Taxes) PROPERTY ADDRESS THIS TRANSACTION: 20 E. Mountain (Street Address) Fayetteville, AR 72701 (City) (State) (Zip) LEGAL DESCRIPTION: Lot Numbered Fifteen (15) in Block Twenty -Eight (28) as designated upon the original plat of the Town of Fayetteville, Arkansas, now on file in the Office of the Circuit Clerk and Ex -Officio Recorder of Washington County, Arkansas, except a strip of equal and uniform width of One (1) foot off the West side thereof. GENERAL TAXES FOR THE YEAR: 2004 Real Property Taxes, which are now due and payable as follows: Parcel Number: 765-01939-000 Amount Due: $3,218.54 Valuation: $62,062.00 Millage Rate: .05186 School District: 011 Taxes are due March 1st of every year and delinquent if paid after October 10th of every year. SPECIAL ASSESSMENTS FOR THE YEAR: NONE THIS PROPERTY IS EMBRACED WITHIN THE BOUNDS OF THE FOLLOWING SPECIAL IMPROVEMENTS DISTRICTS: ADDITIONAL ASSESSMENTS: NONE BORROWER(S): City of Fayetteville LENDER: Cash DATE: April 12, 2005 PROFESSIONAL LAND TITLE COMPANY OF ARKANSAS By: Autho z Agent