SCHEDULE A (Transaction Information) Rev. No. 1 1. Effective Date of Public Records: December 16, 2014 at 08:00 AM 2. Title Insurance Policies to be Issued: Policy Amount a. [ X ] Old Republic ALTA Own. Policy (06/17/06) $ 1,000.00 Proposed Insured: Proposed Purchaser b. [ ] ALTA Loan Policy (06/17/06) Proposed Insured: 3. Current Ownership: Fee Simple interest in the Property described in this Commitment is owned at the Effective Date by: Paul Dost Farms, LLC 4. Property Legal Description: The Property is described on Schedule C. By: Lawrence R. Duthler, Managing Member LENDERS: AGENTS, BROKERS AND Corporate Office: For questions about this title ALL OTHERS: 1410 Plainfield Avenue NE Grand Rapids, MI 49505 (616)458-9100 Main (616)458-9300 Fax www.suntitle.com New Orders: commitment (including title clearance on refinance transactions) contact Customer Service: customerservice@suntitleagency.com For questions about this title commitment (including satisfying requirements, scheduling closings, or transaction coordination) contact the Escrow Officer on this transaction: orders@suntitleagency.com Lender Closing Documents: closingdocs@suntitleagency.com shambelton@suntitleagency.com
SCHEDULE B-I Rev. No. 1 Requirements The following items are that must be completed or satisfied before we can issue our Title Insurance Policy. Some items must be handled before the transaction closes and some can be handled at the closing of the the transaction. In most circumstances, "sooner-is-better" to complete the Requirements. Ranking: Each Requirement is ranked based on the level of difficulty or complexity that will likely be involved in completing them: [*] LOW - Fairly routine and the process to complete them is straight forward. [**] MEDIUM - May require additional time and effort to complete and should be started promptly. [***] HIGH - Represent a significant and substantial issue that must be investigated and handled as soon as possible. These could require additional time and may require specialized services to complete. STANDARD REQUIREMENTS (These apply to every transaction) 1. TRANSACTION PAYMENTS [*]: You m ust pay the applicable costs and fees relating to the transaction, including any property acquisition costs, loan fees, and title insurance premiums (most will be paid at the closing of the transaction). 2. OTHER INTERESTED PARTIES [*]: You must tell us in writing about any person who will get an ownership interest in the Property or who will make a loan or mortgage on the Property. 3. COMMITMENT JACKET AND PRIVACY POLICY [*]: This Title Commitment incorporates all of the terms and conditions in our Privacy Policy and the Title Commitment Jacket, each of which can be reviewed on our website or requested. 4. OWNERS' AFFIDAVIT [*]: We must receive a signed Owners' Affidavit and Closing Agreement from the current owner. The Owners' Affidavit and Closing Agreement is typically signed at the closing of the transaction and includes statements from the owner(s) about their knowledge of the Property, including information relating to their ownership of the Property, details about the transaction, and other provisions necessary for us to conduct the closing and issue our title insurance policy.
SPECIFIC REQUIREMENTS (These are unique to this transaction) 5. PURCHASE AGREEMENT [*]: When a purchase agreement for the property is signed, we must receive a copy of the fully signed purchase agreement and this title commitment will be revised to reflect the transaction details, including the proposed insurance coverage and insured parties (together with any additional requirements that may be necessary after a review of the purchase agreement). 6. LIMITED LIABILITY COMPANY - AUTHORIZATION [*]: We must receive a copy of the Operating Agreement of Paul Dost Farms, LLC, a Michigan limited liability company, to determine who is authorized to sign transaction documents on behalf of the limited liability company (e.g. managers, members, or other authorized persons). Alternatively, if a copy of the Operating Agreement is not available or there is no Operating Agreement, we can accept a resolution signed by all of the Members that: (i) includes a statement that the individuals signing the resolution represent all of the members of the limited liability company, (ii) authorizes this transaction, and (iii) lists the names of one or more individuals that are authorized to sign the transaction documents on behalf of the limited liability company. Note: If it is not possible to obtain a member resolution signed by all of the members, then we will review the company's Operating Agreement to determine who is authorized to sign on behalf of the limited liability company and whether a resolution is needed. If the Operating Agreement clearly indicates that a majority of members can act on behalf of the company (or a manager or majority of managers can act on behalf of the company), then no resolution will be required if those individuals sign the transaction documents. Upon request, a form of member resolution can be provided. 7. DEED FROM ENTITY OWNER TO BUYER [*]: When the transaction is closed, a Warranty Deed from Paul Dost Farms, LLC, a Michigan limited liability company, to Proposed Purchaser, must be signed and recorded. Note: The deed must be executed by an individual authorized to sign on behalf of the entity as evidenced by the entity's organizational documents or a properly executed resolution (this is typically signed at the closing, unless signed in advance). 8. FARMLAND DEVELOPMENT RIGHTS AGREEMENT [**]: We must receive a termination from the Michigan Department of Agriculture & Rural Development of the Farmland Development Rights Agreement executed by Paul Dost Farms, LLC, and the Department of Natural Resources, for and on behalf of the State of Michigan, dated October 15, 2013, recorded November 25, 2013, in Liber 1296, on page 1227. Note: A Farmland Development Rights Agreement places a restriction on the property and preserves it for agriculture use in exchange for certain tax benefits and exemptions for various special assessments (commonly known as PA 116). There are several requirements that must be satisfied to obtain an early termination of the Agreement, including the repayment of the prior seven years' tax credits. If the Agreement cannot or will not be terminated, then the Agreement will appear as an Exception to any title insurance policies. Forms to initiate the termination process are available on the State of Michigan website.
9. FARMLAND DEVELOPMENT RIGHTS AGREEMENT [**]: We must receive a termination from the Michigan Department of Agriculture & Rural Development of the Farmland Development Rights Agreement executed by Paul Dost Farms, LLC, dated October 15, 2013, recorded November 25, 2013, in Liber 1296, on page 1225. Note: A Farmland Development Rights Agreement places a restriction on the property and preserves it for agriculture use in exchange for certain tax benefits and exemptions for various special assessments (commonly known as PA 116). There are several requirements that must be satisfied to obtain an early termination of the Agreement, including the repayment of the prior seven years' tax credits. If the Agreement cannot or will not be terminated, then the Agreement will appear as an Exception to any title insurance policies. Forms to initiate the termination process are available on the State of Michigan website. 10. PARTIAL MORTGAGE DISCHARGE OR RELEASE [*]: We must receive a Partial Discharge or Release of the following Mortgage that is recorded against the property: Mortgage in the original amount of $225,000.00 granted by Paul Dost Farms, LLC to Thumb National Bank & Trust Co. (3), dated February 27, 2012, and recorded on March 1, 2012, at Liber 1242, on page 242, in Tuscola County. Note: A Partial Discharge or Release of the Mortgage is most often obtained AFTER the transaction is completed by following these steps: (i) Before the closing, a pay-off letter is obtained from the Lender that includes the payment amount necessary for the Lender to give the partial discharge or release, the daily interest amount, and where to send the payment; (ii) At the closing, the instructions in the pay-off letter are followed (for example, the proceeds from the transaction are used to send the payment to the Lender); and then (iii) After the closing, the Partial Discharge or Release is recorded by the Lender (Michigan Law requires a lender to do so within 60 days of receiving payment - MCL 565.44). This Mortgage covers more property than the property shown in this title commitment. Accordingly, the Lender may not require a full pay-off of the balance of the loan. The borrower can request a pay-off letter from the Lender or the borrower can give us authorization to request the pay-off letter (a blank Borrower's Authorization form will accompany our initial title commitment). Contact information for the Lender is usually located on the borrower's loan payment coupons or monthly mortgage statements.
11. PARTIAL MORTGAGE DISCHARGE OR RELEASE [*]: We must receive a Partial Discharge or Release of the following Mortgage that is recorded against the property: Mortgage in the original amount of $516,833.40 granted by Paul Dost Farms, LLC, to the United States of America, acting through the Farm Service Agency, United States Department of Agriculture, dated June 5, 2013, and recorded on July 3, 2013, at Liber 1285, on page 285, in Tuscola County. Note: A Partial Discharge or Release of the Mortgage is most often obtained AFTER the transaction is completed by following these steps: (i) Before the closing, a pay-off letter is obtained from the Lender that includes the payment amount necessary for the Lender to give the partial discharge or release, the daily interest amount, and where to send the payment; (ii) At the closing, the instructions in the pay-off letter are followed (for example, the proceeds from the transaction are used to send the payment to the Lender); and then (iii) After the closing, the Partial Discharge or Release is recorded by the Lender (Michigan Law requires a lender to do so within 60 days of receiving payment - MCL 565.44). This Mortgage covers more property than the property shown in this title commitment. Accordingly, the Lender may not require a full pay-off of the balance of the loan. The borrower can request a pay-off letter from the Lender or the borrower can give us authorization to request the pay-off letter (a blank Borrower's Authorization form will accompany our initial title commitment). Contact information for the Lender is usually located on the borrower's loan payment coupons or monthly mortgage statements.
12. REAL ESTATE TAXES, ASSESSMENTS AND INVOICES [*]: Any taxes, assessments and other invoices identified below as DUE must be paid at or before the closing of the transaction: Parcel No.:79-011-007-000-0500-00 2014 Winter Taxes in the amount of $1,340.79, payable on or before February 14, 2015, are DUE (Special Assessment Included: $25.00 for Fire Protection) 2014 Summer Taxes in the amount of $892.14, payable on or before December 31, 2014, are DUE (Special Assessment Included: None) 2014 Summer base tax: $850.05 Unpaid Balance on Special Assessments: Information requested Special/Miscellaneous Invoices DUE: Information requested Note: The following information (including the parcel number and address above) is provided for informational purposes only and the accuracy of such information is neither guaranteed or insured: Served by Public Water/Sewer: Information requested 2014 State Equalized Value: $85,400.00 2014 Taxable Value: $84,984.00 Principal Residence Exemption: 100% School District: Mayville
13. REAL ESTATE TAXES, ASSESSMENTS AND INVOICES [*]: Any taxes, assessments and other invoices identified below as DUE must be paid at or before the closing of the transaction: Parcel No.:79-011-007-000-4100-00 2014 Winter Taxes in the amount of $577.28, payable on or before February 14, 2015, are DUE (Special Assessment Included: $25.00 for Fire protection) 2014 Summer Taxes in the amount of $172.27, payable on or before December 31, 2014, are DUE (Special Assessment Included: None) 2014 Summer Base Tax: $164.14 Unpaid Balance on Special Assessments: None Special/Miscellaneous Invoices DUE: None Note: The following information (including the parcel number and address above) is provided for informational purposes only and the accuracy of such information is neither guaranteed or insured: Served by Public Water/Sewer: No 2014 State Equalized Value: $31,100.00 2014 Taxable Value: $16,394.00 Principal Residence Exemption: 0% School District: Mayville
Rev. No. 1 (Exceptions) SCHEDULE B-II The following items affect the ownership of the Property and will be excluded from coverage in the Title Insurance Policy: GENERAL EXCEPTIONS (These apply to every property) 1. Facts, rights, interests or claims that could be identified or discovered by an inspection of the Property or an inquiry of anyone in possession of the Property. 2. Any lien or right to lien for services, labor or material imposed by law and not shown in the Public Records, including any liens under the Michigan Construct Lien Act. 3. Easements, liens or encumbrances, or claims thereof, not shown in the Public Records. 4. Facts, rights, interests, encroachments, encumbrances, violations, variations or adverse circumstance that could be identified or discovered by an accurate and complete land survey of the Property. 5. Future taxes and assessments not yet billed, due and payable as of the Effective Date of this Title Commitment. 6. Any rights, title, interest or claim thereof to that portion of the land taken, used or granted for streets, roads or highways. 7. Taxes and assessments that become a lien against the property after date of closing. The company assumes no liability for tax increases occasioned by retroactive revaluation, changes in the land usage or loss of any principal residence exemption status for the insured premises. 8. Loss or damage due to future installation charges, deferred installation or connection charges or current water and/or sewer charges due and payable at time of closing. Note: Exceptions 1, 2 and 3 above can be deleted from the Title Insurance Policy upon written request and receipt of the signed Owners' Affidavit and Closing Agreement. Exception 4 above can be deleted from the Title Insurance Policy upon written request and receipt of a complete and accurate survey. SPECIFIC EXCEPTIONS (These are unique to this Property) 9. Any provisions contained in any instruments of record which provisions pertain to the transfer of divisions under Section 109(3) of the Subdivision Control Act of 1967, as amended. 10. Any and all oil, gas and mineral rights and reservations of every kind and nature whether recorded or unrecorded and all rights pertinent thereto. 11. The nature, extent or lack of riparian rights or the riparian rights of riparian owners and the public in and to the use of waters of O'Brien Drain. 12. Right of Way Easement in favor of Thumb Electric Cooperative, as evidenced in Liber 288, on page 473. 13. Ingress and Egress to Parcel 2 in not insured independent of Parcel 1.
SCHEDULE C (Property Legal Description) Rev. No. 1 Vassar, MI 48768 LEGAL DESCRIPTION The Property referred to in this commitment is described as follows: Land situated in the Township of Fremont, Tuscola County, Michigan: Parcel 1: The West half of the Northeast quarter of Section 7, Town 11 North, Range 9 East, EXCEPT the North 445.50 feet of the East 396.00 feet thereof 79-011-007-000-0500-00 Land situated in the Township of Fremont, Tuscola County, Michigan: Parcel 2: The Northwest quarter of the Southeast quarter of Section 7, Town 11 North, Range 9 East 79-011-007-000-4100-00 If provided above, any address and tax parcel number are solely for informational purposes, without warranty as to accuracy or completeness. If inconsistent in any way with the legal description above, the legal description shall control.