INVOICE INVOICE NUMBER

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1 FROM: JAMES J WIDEMAN WIDEMAN APPRAISAL SERVICE, INC 1002 E CENTER STREET ITHACA, MI Telephone Number: TO: 4949 TULANE DR BATON ROUGE, MI Telephone Number: (225) Alternate Number: MAP REFERENCE # Fax Number: Fax Number: d83@cox.net INVOICE INVOICE NUMBER DATE JANUARY 9, 2013 REFERENCE Internal Order #: Lender Case #: Client File #: Main File # on form: Other File # on form: Federal Tax ID: Employer ID: DESCRIPTION Lender: Client: Purchaser/Borrower: Property Address: 659 W Harrison Rd City: ALMA County: GRATIOT State: MI Zip: Legal Description: SEE ATTACHED FEES AMOUNT APPRAISAL FEE FOR LAND APPRAISAL FEE FOR HOME SUBTOTAL PAYMENTS AMOUNT Check #: Date: Description: Check #: Date: Description: Check #: Date: Description: SUBTOTAL TOTAL DUE Form NIV5 "WinTOTAL" appraisal software by a la mode, inc ALAMODE Wideman Appraisal Service

2 Main File No Page #1 APPRAISAL OF REAL PROPERTY LOCATED AT 659 W Harrison Rd ALMA, MI SEE ATTACHED FOR 4949 TULANE DR BATON ROUGE, MI OPINION OF VALUE 507,000 AS OF 12/09/2012 BY JAMES J. WIDEMAN WIDEMAN APPRAISAL SERVICE 1002 E. CENTER STREET ITHACA, MI (989) jim@widemanappraisal.com Form GA1V "WinTOTAL" appraisal software by a la mode, inc ALAMODE

3 Main File No Page #2 SUMMARY OF SALIENT FEATURES Subject Address 659 W Harrison Rd Legal Description SEE ATTACHED SUBJECT INFORMATION City County State Zip Code ALMA GRATIOT MI Census Tract Map Reference SALES PRICE Sale Price Date of Sale N/A N/A CLIENT Borrower/Client Lender Size (Square Feet) 2,232 DESCRIPTION OF IMPROVEMENTS Price per Square Foot Location Age Condition Total Rooms Bedrooms RURAL AVG Baths 1 APPRAISER Appraiser Date of Appraised Value JAMES J. WIDEMAN 12/09/2012 VALUE Opinion of Value 507,000 Form SSD2 "WinTOTAL" appraisal software by a la mode, inc ALAMODE

4 Wideman Appraisal Service Main File No Page #3 UNIFORM RESIDENTIAL APPRAISAL REPORT Property Description File No Property Address 659 W Harrison Rd City ALMA State MI Zip Code Legal Description SEE ATTACHED County GRATIOT Assessor's Parcel No SEV=164,500 Tax Year 2012 R.E. Taxes 2,239 Special Assessments 0 Borrower Current Owner BELL Occupant: Owner Tenant Vacant Property rights appraised Fee Simple Leasehold Project Type PUD Condominium (HUD/VA only) HOA 0 /Mo. Neighborhood or Project Name RURAL ALMA Map Reference Census Tract Sale Price N/A Date of Sale N/A Description and amount of loan charges/concessions to be paid by seller N/A Lender/Client Address 4949 TULANE DR, BATON ROUGE, MI Appraiser JAMES J. WIDEMAN Address 1002 E. CENTER STREET, ITHACA, MI Location Urban Suburban Rural Predominant Single family housing Present land use % Land use change Built up occupancy PRICE AGE Over 75% 25-75% Under 25% (000) (yrs) One family 40 Not likely Likely Growth rate Rapid Stable Slow Owner 25 Low family In process Property values Increasing Stable Declining Tenant 150+ High 100+ Multi-family To: Demand/supply Shortage In balance Over supply Vacant (0-5%) Predominant Commercial Marketing time Under 3 mos. 3-6 mos. Over 6 mos. Vac.(over 5%) VACANT 60 SUBJECT Note: Race and the racial composition of the neighborhood are not appraisal factors. Neighborhood boundaries and characteristics: RURAL ALMA AND ITHACA IN CENTRAL GRATIOT COUNTY NEIGHBORHOOD Factors that affect the marketability of the properties in the neighborhood (proximity to employment and amenities, employment stability, appeal to market, etc.): THE SUBJECT IS LOCATED IN CENTRAL GRATIOT COUNTY 2 MILES SOUTHEAST OF THE CITY OF ALMA. THE CITY OF ALMA HAS MOST AMENITIES ALONG WITH SCHOOLS, SHOPPING AND GOOD EMPLOYMENT BASE. TYPICAL RURAL NEIGHBORHOOD WITH OPEN FIELDS AND MIXTURE OF HOME STYLES. Market conditions in the subject neighborhood (including support for the above conclusions related to the trend of property values, demand/supply, and marketing time -- such as data on competitive properties for sale in the neighborhood, description of the prevalence of sales and financing concessions, etc.): THE AREA HAS SEEN AN INCREASE IN LISTINGS IN THE LAST 18 MONTHS WITH VERY FEW SALES. THE MARKET HAS DECLINED IN LAST 60 MONTHS, BUT IS STABLE IN RECENT 12 MONTHS. MARKETING TIMES RANGE FROM 60 TO 180+ DAYS WITH ADEQUATE MORTGAGE RATES FROM 2.9% TO 7.5%. PUD SITE DESCRIPTION OF IMPROVEMENTS Project Information for PUDs (If applicable) - - Is the developer/builder in control of the Home Owners' Association (HOA)? Yes No Approximate total number of units in the subject project Approximate total number of units for sale in the subject project Describe common elements and recreational facilities: Dimensions 300' X 435' Topography GENTLY SLOPING Site area 130,500 Corner Lot Yes No Size FOR AREA Specific zoning classification and description AG Shape RECTANGLE Zoning compliance Legal Legal nonconforming (Grandfathered use) Illegal No zoning Drainage APPEARS ADEQUATE Highest & best use as improved: Present use Other use (explain) View OPEN FIELDS Utilities Public Other Off-site Improvements Type Public Private Landscaping LAWN/TREES Electricity Street GRAVEL Driveway Surface GRAVEL Gas LP GAS Curb/gutter Apparent easements Water WELL Sidewalk FEMA Special Flood Hazard Area Yes No Sanitary sewer SEPTIC Street lights FEMA Zone X Map Date 10/18/2011 Storm sewer Alley FEMA Map No C0200C Comments (apparent adverse easements, encroachments, special assessments, slide areas, illegal or legal nonconforming zoning use, etc.): THE SITE IS PART OF AN 80 ACRE PARCEL WITH 3 ACRES BEING SPLIT FOR HOME. THE SITE HAS WELL AND SEPTIC ON SITE. GRAVEL DRIVEWAY TO HOME AND BUILDINGS. GENERAL DESCRIPTION EXTERIOR DESCRIPTION FOUNDATION BASEMENT INSULATION No. of Units 1 Foundation BLK/STONE Slab NO Area Sq. Ft. 796 SF Roof No. of Stories 2 Exterior Walls SLATE Crawl Space BLOCK % Finished UNFINISH Ceiling Type (Det./Att.) DET Roof Surface SHINGLE Basement BLK/STONE Ceiling JOIST Walls Design (Style) 2 STORY Gutters & Dwnspts. Sump Pump NOT OBSV Walls STONE/BLK Floor Existing/Proposed EXISTING Window Type DH-INSULATE Dampness NOT OBSV Floor CONC None Age (Yrs.) 100+ Storm/Screens SCREENS Settlement NOT OBSV Outside Entry YES Unknown Effective Age (Yrs.) 30 Manufactured House NO Infestation NOT OBSV ROOMS Foyer Living Dining Kitchen Den Family Rm. Rec. Rm. Bedrooms # Baths Laundry Other Area Sq. Ft. Basement STRGE 796 SF Level ,436 Level Finished area above grade contains: 7 Rooms; 4 Bedroom(s); 1 Bath(s); 2,232 Square Feet of Gross Living Area INTERIOR Materials/Condition HEATING KITCHEN EQUIP. ATTIC AMENITIES CAR STORAGE: Floors CRPT-WOOD/AVG Type F/A Refrigerator None Fireplace(s) # None Walls PLASTER-AVG Fuel LP GAS Range/Oven Stairs Patio Garage # of cars Trim/Finish WOOD-AVG Condition AVG Disposal Drop Stair Deck Attached Bath Floor VINYL-AVG COOLING Dishwasher Scuttle Porch COV Detached Bath Wainscot DRYWALL-AVG Central NO Fan/Hood Floor Fence Built-In Doors PANEL-AVG Other NO Microwave Heated Pool Carport Condition N/A Washer/Dryer Finished BARNS Driveway 4 Additional features (special energy efficient items, etc.): FRONT COV PORCH. OLDER BARN AND SHED ON SITE WITH 1 GRAIN BIN AND GRAIN HOPPER. THE BARNS ARE IN FAIR CONDITION WITH LITTLE VALUE. Condition of the improvements, depreciation (physical, functional, and external), repairs needed, quality of construction, remodeling/additions, etc.: NO INTERIOR INSPECTION WAS DONE, EXTERIOR ONLY. LOOKED THRU WINDOWS TO GET INFORMATION. EXTERIOR HAS OLDER SLATE SIDING, WITH UPDATED WINDOWS AND ROOF. HOME APPEARS TO BE CONDITION WITH OLDER DECOR AND LITTLE INTERIOR UPDATING. Adverse environmental conditions (such as, but not limited to, hazardous wastes, toxic substances, etc.) present in the improvements, on the site, or in the immediate vicinity of the subject property.: NO ANALYSIS WAS MADE FOR MOLD OR OTHER TOXIC SUBSTANCES IN OR OUT OF THE HOME. Freddie Mac Form 70 6/93 PAGE 1 OF 2 Fannie Mae Form /93 Form UA2 "WinTOTAL" appraisal software by a la mode, inc ALAMODE COMMENTS

5 UNIFORM RESIDENTIAL APPRAISAL REPORT Valuation Section File No ESTIMATED SITE VALUE = Comments on Cost Approach (such as, source of cost estimate, site value, ESTIMATED REPRODUCTION COST-NEW-OF IMPROVEMENTS: square foot calculation and for HUD, VA and FmHA, the estimated remaining Dwelling 2,232 Sq. = economic life of the property): COST APPROACH NOT USED FOR 796 Sq. = THIS REPORT WITH SALES COMPARISON APPROACH = BEING THE MOST RELIABLE. NO EXTERNAL OR Garage/Carport Sq. = FUNCTIONAL OBSOLESCENCE NOTED. Total Estimated Cost New = SEE ATTACHED FOR LIVING AREA. Less Physical Functional External Depreciation = Depreciated Value of Improvements = "As-is" Value of Site Improvements = INDICATED VALUE BY COST APPROACH = ITEM SUBJECT COMPARABLE NO. 1 COMPARABLE NO. 2 COMPARABLE NO W Harrison Rd 4183 N Jerome Rd 5691 N Winans Rd Dean Rd Address ALMA Alma, MI Alma, MI Saint Louis, MI Proximity to Subject 1.51 miles W 4.64 miles NW 7.73 miles NE Sales Price N/A 51,100 80,100 53,000 Price/Gross Living Area / / / / Data and/or CMAR MLS 86728;DOM 71 CMAR MLS 87176;DOM 186 CMAR MLS 86917;DOM 27 Verification Source EXTERIOR MLS - REALTOR MLS - REALTOR MLS - REALTOR VALUE ADJUSTMENTS DESCRIPTION DESCRIPTION +( ) Adjust. DESCRIPTION +( ) Adjust. DESCRIPTION +( ) Adjust. Sales or Financing CASH CASH CASH Concessions Date of Sale/Time 05/16/ /02/ /26/2012 Location RURAL AVG RURAL AVG RURAL AVG RURAL AVG Leasehold/Fee Simple FEE SIMPLE FEE SIMPLE FEE SIMPLE FEE SIMPLE Site 3 ACRES 4.5 ACRES -3, AC +3, AC +2,400 View OPEN FIELDS OPEN FIELDS OPEN FIELDS OPEN FIELDS Design and Appeal 2 STORY 2 STY AVG 2 STY AVG 2 STY AVG Quality of Construction Q4 Age YEARS 80+ YEARS 80+ YEARS Condition INFERIOR +8,000 SUPERIOR -12,000 Above Grade Total Bdrms Baths Total Bdrms Baths Total Bdrms Baths Total Bdrms Baths Room Count , , ,500 Gross Living Area 2,232 Sq. Ft. 1,892 Sq. Ft. +3,400 1,940 Sq. Ft. +2,920 1,710 Sq. Ft. +5,220 Basement & Finished 796 SF 850sf0sfin 656sf0sfin 384sf0sfin Rooms Below Grade UNFINISH UNFINISH UNFINISH UNFINISH Functional Utility Heating/Cooling AVG FA-NOAC AVG FA-NOAC GOOD FA-NOA -1,000 AVG FA-NOAC Energy Efficient Items STANDARD STANDARD STANDARD STANDARD Garage/Carport OLD BARN OLD BARN 2.5 CAR DET -3,500 OLD BARN Porch, Patio, Deck, COV PORCH COV PORCH COV PORCH PORCHES Fireplace(s), etc. Fence, Pool, etc. LG SHED LG SHED +1,000 +1,000 DRIVEWAY GRAVEL GRAVEL GRAVEL GRAVEL Net Adj. (total) + 6, , ,120 Adjusted Sales Price Net 13.5 % Net 12.9 % Net 13.4 % of Comparable Gross 31.1 % 58,000 Gross 32.1 % 69,780 Gross 19.1 % 60,120 Comments on Sales Comparison (including the subject property's compatibility to the neighborhood, etc.): THE AREA HAS VERY FEW SALES OF SIMILAR OLDER 2 STORY HOMES IN THE LAST 12 MONTHS. THE SALES FOUND ARE SIMILAR IN RURAL SETTING AND OVERALL AGE. THE ADJUSTMENTS WERE BASED ON LAND, CONDITION AND OVERALL SIZE ALONG WITH AMENITIES. SALE #1 IS INFERIOR IN OVERALL CONDITION AND SALE #2 IS SUPERIOR TO THE SUBJECT. SALE #3 APPEARS TO BE IN THE MOST SIMILAR CONDITION ON BOTH INTERIOR AND EXTERIOR. SALE #1 AND 2 HAVE OLDER BARN AND SHED WITH SALE #2 HAVING A NEWER 2+ CAR GARAGE. THE BEST OPINION FOR THE HOME AND 3 ACRES IS AT THE MIDRANGE AT 63,000. ITEM SUBJECT COMPARABLE NO. 1 COMPARABLE NO. 2 COMPARABLE NO. 3 COST APPROACH SALES COMPARISON ANALYSIS Main File No Page #4 Date, Price and Data NO PRIOR 36 MO NO SALE LAST 12 MONTHS NO SALE LAST 12 MONTHS NO SALE LAST 12 MONTHS Source, for prior sales within year of appraisal COUNTY RECOR CMAR MLS RECORDS CMAR MLS RECORDS CMAR MLS RECORDS Analysis of any current agreement of sale, option, or listing of subject property and analysis of any prior sales of subject and comparables within one year of the date of appraisal: THE SUBJECT IS NOT LISTED AND HAS NOT SOLD IN PRIOR 36 MONTHS. THE COMPARABLES HAVE NOT SOLD IN PRIOR 12 MONTHS TO CLOSE DATE. INDICATED VALUE BY SALES COMPARISON APPROACH 63,000 INDICATED VALUE BY INCOME APPROACH (if Applicable) Estimated Market Rent /Mo. x Gross Rent Multiplier = This appraisal is made "as is" subject to the repairs, alterations, inspections or conditions listed below subject to completion per plans & specifications. Conditions of Appraisal: THE REPORT IS MADE FOR FOR MARKET VALUE PURPOSES FOR SETTLEMENT. THE REPORT IS MADE IN AS IS CONDITION WITH NO WARRANTY OF CONDITION OF THE HOME OR BUILDINGS. Final Reconciliation: BASED ON THE MARKET APPROACH, THE BEST OPINION FOR THE SUBJECT "AS IS" IS 63,000 WITH COST APPROACH AND INCOME APPROACH NOT USED FOR THIS REPORT. NO PERSONAL PROPERTY INCLUDED. RECONCILIATION The purpose of this appraisal is to estimate the market value of the real property that is the subject of this report, based on the above conditions and the certification, contingent and limiting conditions, and market value definition that are stated in the attached Freddie Mac Form 439/FNMA form 1004B (Revised 6/93 ). I (WE) ESTIMATE THE MARKET VALUE, AS DEFINED, OF THE REAL PROPERTY THAT IS THE SUBJECT OF THIS REPORT, AS OF 12/09/2012 (WHICH IS THE DATE OF INSPECTION AND THE EFFECTIVE DATE OF THIS REPORT) TO BE 507,000 APPRAISER: SUPERVISORY APPRAISER (ONLY IF REQUIRED): Signature Signature Did Did Not Name JAMES J. WIDEMAN Name Inspect Property Date Report Signed January 15, 2013 Date Report Signed State Certification # State State Certification # State Or State License # State MI Or State License # State Freddie Mac Form 70 6/93 PAGE 2 OF 2 Form UA2 "WinTOTAL" appraisal software by a la mode, inc ALAMODE Fannie Mae Form

6 Main File No Page #6 File No Sales used for the report are from the Gratiot County area with 6 sales found over the last 15 months. The sales are broken down to equivalent acres based on soil types and productivity ratings for each sold parcel. DATE SALE PRODUCTIVITY EQUIVALENT PRICE PER LOCATION SOLD PRICE ACRES X RATING = ACRES EQUIVAL ACRE Arcada Twp sec 26/35 12/19/2012 1,400, x 94% = ,812 North Star Twp sec 18 09/14/ , x 85% = ,133 North Star Twp sec 13 01/02/ ,000** 140 x 88% = ,529 Emerson Twp sec 26 07/13/ ,000* 39 x 85% = ,787 Emerson Twp sec 3 03/07/ , x 88% = ,629 Newark Twp sec 24 12/20/2011 1,215, x 93% = ,526 TOTALS 4,745, ,524 The equivalent per acre value for soil that is 100% productive is 5,524 based on the sales over the past 15 months. * property sold for 250,000 with 25,000 in building value(estimated). ** property sold for 748,550 with 65,550 in building value and building lot value(appraised). Form DCVR "WinTOTAL" appraisal software by a la mode, inc ALAMODE

7 Main File No Page #7 File No SALES COMPARISON APPROACH PARCEL #1 ARCADA TOWNSHIP SECTION 12 The subject parcel is 37 acres with a mixture of soils types with good access on west side with Jerome Road on the west. The tillable is 36 acres with 1 acre for road. The soil type is a mixture of 6 soils that are listed below along with the amount of acreage for each soil type. The parcel has public road access to the fields on the west side. The drainage appears to be adequate with natural drainage along with some random field tile. The average productivity of the soils for this parcel is rated by the U.S. Department of Agriculture through the Gratiot County Soil Conservation Service Soil Survey issued in April The soil maps are in the working file of the report. The value of the tillable soils is based on the attached sales of similar farm land rated on the productivity basis to arrive at 100% productive soil. The value of the tillable land is based on the 6 sales of vacant land at 5,524/equivalent acre which is 100% productive soil over the past 15 months with the most recent sale in SOIL TYPE PARCEL #1 Ph - Parkhill Loam = 5.6 acres x 100% = 5.6 eq acres x 5,524 = 30,934 CaA - Capac Loam = 6.4 acres x 93% = 5.95 eq acres x 5,524 = 32,868 Ita - Ithaca loam = 8 acres x 91% = 7.28 eq acres x 5,524 = 40,215 Mea - Metamora-Capac Loam = 8 acres x 88% = 7.04 eq acres x 5,524 = 38,889 MaB- Marlette sandy loam = 2.8 acres x 78% = 2.18 eq acres x 5,524 = 12,064 MtB - Metea loamy sand = 5.2 acres x 59% = 3.07 eq acres x 5,524 = 16,948 Road = 1 acres x x 0 = 0 TOTAL PARCEL #1 37 ACRES = 171,918 Total land value = 171,918 Road right of ways = 0 TOTAL 37 ACRES = 171,918 Market Value by Sales Comparison rounded 172,000 It should be noted that the highest and best use of this 37 acres is to remain as an agricultural farm. Form DCVR "WinTOTAL" appraisal software by a la mode, inc ALAMODE

8 Main File No Page #8 File No SALES COMPARISON APPROACH PARCEL #2 ARCADA TOWNSHIP SECTION 13 The subject parcel is 80 acres with a mixture of soils types with good access on north side with Harrison Road on the north. The site has 3 acres with a building site that is valued on attached urar form. the remaining acreage is split into two halfs with west 37 acres and the east 40 acres. The parcels are listed as 1 parcel, but will be split for purposes of valuing in this report. The soil type is a mixture of 4 soils that are listed below along with the amount of acreage for each soil type. The parcel has public road access to the fields on the west side. The drainage appears to be adequate with natural drainage along with some random field tile. The average productivity of the soils for this parcel is rated by the U.S. Department of Agriculture through the Gratiot County Soil Conservation Service Soil Survey issued in April The soil maps are in the working file of the report. The value of the tillable soils is based on the attached sales of similar farm land rated on the productivity basis to arrive at 100% productive soil. The value of the tillable land is based on the 6 sales of vacant land at 5,524/equivalent acre which is 100% productive soil over the past 15 months with the most recent sale in SOIL TYPE PARCEL 37 ACRES CaA - Capac Loam = 3.6 acres x 93% = 3.35 eq acres x 5,524 = 18,494 RdA - Riverdale Loamy sand = 7.6 acres x 57% = 4.33 eq acres x 5,524 = 23,930 MaB- Marlette sandy loam = 3.6 acres x 78% = 2.81 eq acres x 5,524 = 15,511 Cr - Corunna sandy loam = 2.1 acres x 97% = 2.04 eq acres x 5,524 = 11,252 Woods/brush/pond = 19.3 acres x flat value 2,500 = 48,250 Road =.8 acres x x 0 = 0 TOTAL 37 ACRES 117,437 SOIL TYPE PARCEL 40 ACRES CaA - Capac Loam = 7 acres x 93% = 6.51 eq acres x 5,524 = 35,961 Mea - Metamora-Capac Loam = 3.9 acres x 88% = 3.43 eq acres x 5,524 = 18,958 Cr - Corunna sandy loam = 10.5 acres x 97% = eq acres x 5,524 = 56,262 Woods/brush/pond = 17.6 acres x flat value 2,500 = 44,000 Road = 1 acres x x 0 = 0 TOTAL 40 ACRES 155,181 TOTAL PARCEL #2 77 ACRES = 272,618 Total land value = 272,618 Road right of ways = 0 TOTAL 77 ACRES = 272,618 Market Value by Sales Comparison rounded 272,600 It should be noted that the highest and best use of this 77 acres is to remain as an agricultural farm. Form DCVR "WinTOTAL" appraisal software by a la mode, inc ALAMODE

9 Main File No Page #9 File No Form DCVR "WinTOTAL" appraisal software by a la mode, inc ALAMODE

10 SOIL LEGEND Main File No Page #10 Form SCNLTR "WinTOTAL" appraisal software by a la mode, inc ALAMODE

11 Subject Photos Main File No Page #11 Borrower/Client Property Address City 659 W Harrison Rd ALMA County GRATIOT State MI Zip Code Lender Subject Front 659 W Harrison Rd Sales Price N/A Gross Living Area 2,232 Total Rooms 7 Total Bedrooms 4 Total Bathrooms 1 Location RURAL AVG View OPEN FIELDS Site 3 ACRES Quality Age 100+ Subject Rear Subject Street Form PICPIX.SR "WinTOTAL" appraisal software by a la mode, inc ALAMODE

12 Subject Interior Photo Page Main File No Page #12 Borrower/Client Property Address City 659 W Harrison Rd ALMA County GRATIOT State MI Zip Code Lender SUBJECT FRONT 659 W Harrison Rd Sales Price N/A Gross Living Area 2,232 Total Rooms 7 Total Bedrooms 4 Total Bathrooms 1 Location RURAL AVG View OPEN FIELDS Site 3 ACRES Quality Age 100+ Subject Rear Subject Shed 54X24 Form PICPIX.SI "WinTOTAL" appraisal software by a la mode, inc ALAMODE

13 Photograph Addendum Main File No Page #13 Borrower/Client Property Address City 659 W Harrison Rd ALMA County GRATIOT State MI Zip Code Lender Subject Grain Bin Subject Barn Subject NE Corner Looking SW Sec 13 Subject NW Corner Looking SE Sec 13 Subject SW Corner Looking East Sec 12 Subject NW Corner Looking SE Sec 12 Form PICSIX2 "WinTOTAL" appraisal software by a la mode, inc ALAMODE

14 Comparable Photo Page Main File No Page #14 Borrower/Client Property Address City 659 W Harrison Rd ALMA County GRATIOT State MI Zip Code Lender Comparable N Jerome Rd Prox. to Subject 1.51 miles W Sales Price 51,100 Gross Living Area 1,892 Total Rooms 8 Total Bedrooms 4 Total Bathrooms 2 Location RURAL AVG View OPEN FIELDS Site 4.5 ACRES Quality Age 90+ YEARS Comparable N Winans Rd Prox. to Subject 4.64 miles NW Sales Price 80,100 Gross Living Area 1,940 Total Rooms 7 Total Bedrooms 4 Total Bathrooms 2 Location RURAL AVG View OPEN FIELDS Site 1.12 AC Quality Age 80+ YEARS Comparable Dean Rd Prox. to Subject 7.73 miles NE Sales Price 53,000 Gross Living Area 1,710 Total Rooms 8 Total Bedrooms 5 Total Bathrooms 2 Location RURAL AVG View OPEN FIELDS Site 1.8 AC Quality Q4 Age 80+ YEARS Form PICPIX.CR "WinTOTAL" appraisal software by a la mode, inc ALAMODE

15 Building Sketch Main File No Page #15 Borrower/Client Property Address City 659 W Harrison Rd ALMA County GRATIOT State MI Zip Code Lender 6' 19' 51' 25' 26' 26' 6' 7' Form SKT.BldSkI "WinTOTAL" appraisal software by a la mode, inc ALAMODE

16 Location Map Main File No Page #16 Borrower/Client Property Address City 659 W Harrison Rd ALMA County GRATIOT State MI Zip Code Lender Form MAP.LOC "WinTOTAL" appraisal software by a la mode, inc ALAMODE

17 ARCADA TOWNSHIP PLAT MAP Main File No Page #17 Form SCNLTR "WinTOTAL" appraisal software by a la mode, inc ALAMODE

18 Aerial Map - 80 ACRE PARCEL SECTION 13 Main File No Page #18 Borrower/Client Property Address City 659 W Harrison Rd ALMA County GRATIOT State MI Zip Code Lender Form MAP.LOC "WinTOTAL" appraisal software by a la mode, inc ALAMODE

19 Aerial Map - 38 ACRE PARCEL SECTION 12 Main File No Page #19 Borrower/Client Property Address City 659 W Harrison Rd ALMA County GRATIOT State MI Zip Code Lender Form MAP.LOC "WinTOTAL" appraisal software by a la mode, inc ALAMODE

20 MULTI-PURPOSE SUPPLEMENTAL ADDENDUM FOR FEDERALLY RELATED TRANSACTIONS Main File No Page #20 Wideman Appraisal Service Borrower/Client Property Address City 659 W Harrison Rd ALMA County GRATIOT State MI Zip Code Lender This Multi-Purpose Supplemental Addendum for Federally Related Transactions was designed to provide the appraiser with a convenient way to comply with the current appraisal standards and requirements of the Federal Deposit Insurance Corporation (FDIC), the Office of the Comptroller of Currency (OCC), The Office of Thrift Supervision (OTS), the Resolution Trust Corporation (RTC), and the Federal Reserve. This Multi-Purpose Supplemental Addendum is for use with any appraisal. Only those statements which have been checked by the appraiser apply to the property being appraised. PURPOSE & FUNCTION OF APPRAISAL The purpose of the appraisal is to estimate the market value of the subject property as defined herein. The function of the appraisal is to assist the above-named Lender in evaluating the subject property for lending purposes. This is a federally related transaction. EXTENT OF APPRAISAL PROCESS The appraisal is based on the information gathered by the appraiser from public records, other identified sources, inspection of the subject property and neighborhood, and selection of comparable sales within the subject market area. The original source of the comparables is shown in the Data Source section of the market grid along with the source of confirmation, if available. The original source is presented first. The sources and data are considered reliable. When conflicting information was provided, the source deemed most reliable has been used. Data believed to be unreliable was not included in the report nor used as a basis for the value conclusion. The Reproduction Cost is based on COST APPROACH NOT USED FOR THIS REPORT. supplemented by the appraiser's knowledge of the local market. Physical depreciation is based on the estimated effective age of the subject property. Functional and/or external depreciation, if present, is specifically addressed in the appraisal report or other addenda. In estimating the site value, the appraiser has relied on personal knowledge of the local market. This knowledge is based on prior and/or current analysis of site sales and/or abstraction of site values from sales of improved properties. The subject property is located in an area of primarily owner-occupied single family residences and the Income Approach is not considered to be meaningful. For this reason, the Income Approach was not used. The Estimated Market Rent and Gross Rent Multiplier utilized in the Income Approach are based on the appraiser's knowledge of the subject market area. The rental knowledge is based on prior and/or current rental rate surveys of residential properties. The Gross Rent Multiplier is based on prior and/or current analysis of prices and market rates for residential properties. For income producing properties, actual rents, vacancies and expenses have been reported and analyzed. They have been used to project future rents, vacancies and expenses. SUBJECT PROPERTY OFFERING INFORMATION According to MLS/OWNER the subject property: has not been offered for sale in the past: 30 days 1 year 3 years. is currently offered for sale for. was offered for sale within the past: 30 days 1 year 3 years for. Offering information was considered in the final reconciliation of value. Offering information was not considered in the final reconciliation of value. Offering information was not available. The reasons for unavailability and the steps taken by the appraiser are explained later in this addendum. SALES HISTORY OF SUBJECT PROPERTY According to COUNTY RECORDS/MLS the subject property: Has not transferred in the past twelve months. in the past thirty-six months. in the past 5 years. Has transferred in the past twelve months. in the past thirty-six months. in the past 5 years. All prior sales which have occurred in the past are listed below and reconciled to the appraised value, either in the body of the report or in the addenda. Date Sales Price Document # Seller Buyer FEMA FLOOD HAZARD DATA Subject property is not located in a FEMA Special Flood Hazard Area. Subject property is located in a FEMA Special Flood Hazard Area. Zone FEMA Map/Panel # Map Date Name of Community X 26057C0200C 10/18/2011 ARCADA TOWNSHIP The community does not participate in the National Flood Insurance Program. The community does participate in the National Flood Insurance Program. It is covered by a regular program. It is covered by an emergency program. Page 1 of 2 Form MPA3 "WinTOTAL" appraisal software by a la mode, inc ALAMODE

21 Main File No Page #21 CURRENT SALES CONTRACT The subject property is currently not under contract. The contract and/or escrow instructions were not available for review. The unavailability of the contract is explained later in the addenda section. The contract and/or escrow instructions were reviewed. The following summarizes the contract: Contract Date Amendment Date Contract Price Seller The contract indicated that personal property was not included in the sale. The contract indicated that personal property was included. It consisted of Estimated contributory value is. Personal property was not included in the final value estimate. Personal property was included in the final value estimate. The contract indicated no financing concessions or other incentives. The contract indicated the following concessions or incentives:. If concessions or incentives exist, the comparables were checked for similar concessions and appropriate adjustments were made, if applicable, so that the final value conclusion is in compliance with the Market Value defined herein. MARKET OVERVIEW Include an explanation of current market conditions and trends. 1-6 months is considered a reasonable marketing period for the subject property based on BASED ON AUCTION ADVERTISING AND 1 DAY BID PROCESS.. ADDITIONAL CERTIFICATION The Appraiser certifies and agrees that: (1) The analyses, opinions and conclusions were developed, and this report was prepared, in conformity with the Uniform Standards of Professional Appraisal Practice ("USPAP"), except that the Departure Provision of the USPAP does not apply. (2) Their compensation is not contingent upon the reporting of predetermined value or direction in value that favors the cause of the client, the amount of the value estimate, the attainment of a stipulated result, or the occurrence of a subsequent event. (3) This appraisal assignment was not based on a requested minimum valuation, a specific valuation, or the approval of a loan. ADDITIONAL (ENVIRONMENTAL) LIMITING CONDITIONS The value estimated is based on the assumption that the property is not negatively affected by the existence of hazardous substances or detrimental environmental conditions unless otherwise stated in this report. The appraiser is not an expert in the identification of hazardous substances or detrimental environmental conditions. The appraiser's routine inspection of and inquiries about the subject property did not develop any information that indicated any apparent significant hazardous substances or detrimental environmental conditions which would affect the property negatively unless otherwise stated in this report. It is possible that tests and inspections made by a qualified hazardous substance and environmental expert would reveal the existence of hazardous substances or detrimental environmental conditions on or around the property that would negatively affect its value. ADDITIONAL COMMENTS IN MICHIGAN, APPRAISERS ARE REQUIRED TO BE LICENSED/CERTIFIED AND ARE REGULATED BY THE MICHIGAN DEPARTMENT OF LICENSING AND REGULATORY AFFAIRS, P.O. BOX 30018, LANSING, MI I AM CURRENTLY LICENSED AS A STATE LICENSED REAL ESTATE APPRAISER. APPRAISER'S SIGNATURE & LICENSE/CERTIFICATION Appraiser's Signature Effective Date 12/09/2012 Date Prepared January 15, 2013 Appraiser's Name (print) JAMES J. WIDEMAN Phone # (989) State MI License Certification # Tax ID # CO-SIGNING APPRAISER'S CERTIFICATION The co-signing appraiser has personally inspected the subject property, both inside and out, and has made an exterior inspection of all comparable sales listed in the report. The report was prepared by the appraiser under direct supervision of the co-signing appraiser. The co-signing appraiser accepts responsibility for the contents of the report including the value conclusions and the limiting conditions, and confirms that the certifications apply fully to the co-signing appraiser. The co-signing appraiser has not personally inspected the interior of the subject property and: has not inspected the exterior of the subject property and all comparable sales listed in the report. has inspected the exterior of the subject property and all comparable sales listed in the report. The report was prepared by the appraiser under direct supervision of the co-signing appraiser. The co-signing appraiser accepts responsibility for the contents of the report, including the value conclusions and the limiting conditions, and confirms that the certifications apply fully to the co-signing appraiser with the exception of the certification regarding physical inspections. The above describes the level of inspection performed by the co-signing appraiser. The co-signing appraiser's level of inspection, involvement in the appraisal process and certification are covered elsewhere in the addenda section of this appraisal. CO-SIGNING APPRAISER'S SIGNATURE & LICENSE/CERTIFICATION Co-Signing Appraiser's Signature Effective Date Date Prepared Co-Signing Appraiser's Name (print) Phone # State License Certification # Tax ID # Page 2 of 2 Form MPA3 "WinTOTAL" appraisal software by a la mode, inc ALAMODE

22 Main File No Page #22 DEFINITION OF MARKET VALUE: The most probable price which a property should bring in a competitive and open market under all conditions requisite to a fair sale, the buyer and seller, each acting prudently, knowledgeably and assuming the price is not affected by undue stimulus. Implicit in this definition is the consummation of a sale as of a specified date and the passing of title from seller to buyer under conditions whereby: (1) buyer and seller are typically motivated; (2) both parties are well informed or well advised, and each acting in what he considers his own best interest; (3) a reasonable time is allowed for exposure in the open market; (4) payment is made in terms of cash in U.S. dollars or in terms of financial arrangements comparable thereto; and (5) the price represents the normal consideration for the property sold unaffected by special or creative financing or sales concessions* granted by anyone associated with the sale. *Adjustments to the comparables must be made for special or creative financing or sales concessions. No adjustments are necessary for those costs which are normally paid by sellers as a result of tradition or law in a market area; these costs are readily identifiable since the seller pays these costs in virtually all sales transactions. Special or creative financing adjustments can be made to the comparable property by comparisons to financing terms offered by a third party institutional lender that is not already involved in the property or transaction. Any adjustment should not be calculated on a mechanical dollar for dollar cost of the financing or concession but the dollar amount of any adjustment should approximate the market's reaction to the financing or concessions based on the appraiser's judgement. STATEMENT OF LIMITING CONDITIONS AND APPRAISER'S CERTIFICATION CONTINGENT AND LIMITING CONDITIONS: The appraiser's certification that appears in the appraisal report is subject to the following conditions: 1. The appraiser will not be responsible for matters of a legal nature that affect either the property being appraised or the title to it. The appraiser assumes that the title is good and marketable and, therefore, will not render any opinions about the title. The property is appraised on the basis of it being under responsible ownership. 2. The appraiser has provided a sketch in the appraisal report to show approximate dimensions of the improvements and the sketch is included only to assist the reader of the report in visualizing the property and understanding the appraiser's determination of its size. 3. The appraiser has examined the available flood maps that are provided by the Federal Emergency Management Agency (or other data sources) and has noted in the appraisal report whether the subject site is located in an identified Special Flood Hazard Area. Because the appraiser is not a surveyor, he or she makes no guarantees, express or implied, regarding this determination. 4. The appraiser will not give testimony or appear in court because he or she made an appraisal of the property in question, unless specific arrangements to do so have been made beforehand. 5. The appraiser has estimated the value of the land in the cost approach at its highest and best use and the improvements at their contributory value. These separate valuations of the land and improvements must not be used in conjunction with any other appraisal and are invalid if they are so used. 6. The appraiser has noted in the appraisal report any adverse conditions (such as, needed repairs, depreciation, the presence of hazardous wastes, toxic substances, etc.) observed during the inspection of the subject property or that he or she became aware of during the normal research involved in performing the appraisal. Unless otherwise stated in the appraisal report, the appraiser has no knowledge of any hidden or unapparent conditions of the property or adverse environmental conditions (including the presence of hazardous wastes, toxic substances, etc.) that would make the property more or less valuable, and has assumed that there are no such conditions and makes no guarantees or warranties, express or implied, regarding the condition of the property. The appraiser will not be responsible for any such conditions that do exist or for any engineering or testing that might be required to discover whether such conditions exist. Because the appraiser is not an expert in the field of environmental hazards, the appraisal report must not be considered as an environmental assessment of the property. 7. The appraiser obtained the information, estimates, and opinions that were expressed in the appraisal report from sources that he or she considers to be reliable and believes them to be true and correct. The appraiser does not assume responsibility for the accuracy of such items that were furnished by other parties. 8. The appraiser will not disclose the contents of the appraisal report except as provided for in the Uniform Standards of Professional Appraisal Practice. 9. The appraiser has based his or her appraisal report and valuation conclusion for an appraisal that is subject to satisfactory completion, repairs, or alterations on the assumption that completion of the improvements will be performed in a workmanlike manner. 10. The appraiser must provide his or her prior written consent before the lender/client specified in the appraisal report can distribute the appraisal report (including conclusions about the property value, the appraiser's identity and professional designations, and references to any professional appraisal organizations or the firm with which the appraiser is associated) to anyone other than the borrower; the mortgagee or its successors and assigns; the mortgage insurer; consultants; professional appraisal organizations; any state or federally approved financial institution; or any department, agency, or instrumentality of the United States or any state or the District of Columbia; except that the lender/client may distribute the property description section of the report only to data collection or reporting service(s) without having to obtain the appraiser's prior written consent. The appraiser's written consent and approval must also be obtained before the appraisal can be conveyed by anyone to the public through advertising, public relations, news, sales, or other media. Freddie Mac Form Page 1 of 2 Fannie Mae Form 1004B 6-93 Wideman Appraisal Service Form ACR_DEFD "WinTOTAL" appraisal software by a la mode, inc ALAMODE

23 Main File No Page #23 APPRAISER'S CERTIFICATION: The appraiser certifies and agrees that: 1. I have researched the subject market area and have selected a minimum of three recent sales of properties most similar and proximate to the subject property for consideration in the sales comparison analysis and have made a dollar adjustment when appropriate to reflect the market reaction to those items of significant variation. If a significant item in a comparable property is superior to, or more favorable than, the subject property, I have made a negative adjustment to reduce the adjusted sales price of the comparable and, if a significant item in a comparable property is inferior to, or less favorable than the subject property, I have made a positive adjustment to increase the adjusted sales price of the comparable. 2. I have taken into consideration the factors that have an impact on value in my development of the estimate of market value in the appraisal report. I have not knowingly withheld any significant information from the appraisal report and I believe, to the best of my knowledge, that all statements and information in the appraisal report are true and correct. 3. I stated in the appraisal report only my own personal, unbiased, and professional analysis, opinions, and conclusions, which are subject only to the contingent and limiting conditions specified in this form. 4. I have no present or prospective interest in the property that is the subject to this report, and I have no present or prospective personal interest or bias with respect to the participants in the transaction. I did not base, either partially or completely, my analysis and/or the estimate of market value in the appraisal report on the race, color, religion, sex, handicap, familial status, or national origin of either the prospective owners or occupants of the subject property or of the present owners or occupants of the properties in the vicinity of the subject property. 5. I have no present or contemplated future interest in the subject property, and neither my current or future employment nor my compensation for performing this appraisal is contingent on the appraised value of the property. 6. I was not required to report a predetermined value or direction in value that favors the cause of the client or any related party, the amount of the value estimate, the attainment of a specific result, or the occurrence of a subsequent event in order to receive my compensation and/or employment for performing the appraisal. I did not base the appraisal report on a requested minimum valuation, a specific valuation, or the need to approve a specific mortgage loan. 7. I performed this appraisal in conformity with the Uniform Standards of Professional Appraisal Practice that were adopted and promulgated by the Appraisal Standards Board of The Appraisal Foundation and that were in place as of the effective date of this appraisal, with the exception of the departure provision of those Standards, which does not apply. I acknowledge that an estimate of a reasonable time for exposure in the open market is a condition in the definition of market value and the estimate I developed is consistent with the marketing time noted in the neighborhood section of this report, unless I have otherwise stated in the reconciliation section. 8. I have personally inspected the interior and exterior areas of the subject property and the exterior of all properties listed as comparables in the appraisal report. I further certify that I have noted any apparent or known adverse conditions in the subject improvements, on the subject site, or on any site within the immediate vicinity of the subject property of which I am aware and have made adjustments for these adverse conditions in my analysis of the property value to the extent that I had market evidence to support them. I have also commented about the effect of the adverse conditions on the marketability of the subject property. 9. I personally prepared all conclusions and opinions about the real estate that were set forth in the appraisal report. If I relied on significant professional assistance from any individual or individuals in the performance of the appraisal or the preparation of the appraisal report, I have named such individual(s) and disclosed the specific tasks performed by them in the reconciliation section of this appraisal report. I certify that any individual so named is qualified to perform the tasks. I have not authorized anyone to make a change to any item in the report; therefore, if an unauthorized change is made to the appraisal report, I will take no responsibility for it. SUPERVISORY APPRAISER'S CERTIFICATION: If a supervisory appraiser signed the appraisal report, he or she certifies and agrees that: I directly supervise the appraiser who prepared the appraisal report, have reviewed the appraisal report, agree with the statements and conclusions of the appraiser, agree to be bound by the appraiser's certifications numbered 4 through 7 above, and am taking full responsibility for the appraisal and the appraisal report. ADDRESS OF PROPERTY APPRAISED: APPRAISER: 659 W Harrison Rd, ALMA, MI SUPERVISORY APPRAISER (only if required): Signature: Signature: Name: JAMES J. WIDEMAN Name: Date Signed: January 15, 2013 Date Signed: State Certification #: State Certification #: or State License #: or State License #: State: MI State: Expiration Date of Certification or License: 07/31/2014 Expiration Date of Certification or License: Did Did Not Inspect Property Freddie Mac Form Page 2 of 2 Fannie Mae Form 1004B 6-93 Form ACR_DEFD "WinTOTAL" appraisal software by a la mode, inc ALAMODE