TERMS and CONDITIONS of the RESERVE AUCTION

This RESERVE AUCTION is conducted by Staci Hoffman, Licensed (# 21-80) and Bonded.

Real Estate representative for this transaction is Chain of Lakes Realty.

The seller, Hancock Investment Group, LLC (Owner) of the property (“Property”) agrees to convey the property to the successful bidder under the following conditions:

Bidder Registration: Although there is no obligation to bid, all prospective buyers MUST register to bid at the auction.  Bids will only be accepted from registered bidders with a photo I.D. and who have in their possession a valid bidding number.  In order to register to receive a bidding number,  funds totaling an amount equal to $10,000.00 must be presented to Hancock Investment Group, LLC.  Cash, personal, & company checks or certified funds will be accepted.  Funds will be held in reserve by Hancock Investment Group, LLC until the end of the auction at which time funds will be returned to each unsuccessful bidder, or in the case of a successful high bidder, funds will then be credited toward the purchase at closing.

Terms: $10,000.00 down on the day of auction. Cash, personal, & company checks or certified funds will be accepted. These funds are non-refundable.  Balance in full due within 30 days of the auction.  Buyers to have financing arrangements made prior to the auction with no contingencies of any kind accepted on day of auction.

Special Assessments:  Buyer will assume all pending and levied special assessments.  Buyer acknowledges a city sewer assessment (estimated at $13,000.00) and a developer's road assessment of $7,000.00.  Special Assessments will be specifically noted on the purchase agreement.  City sewer is expected to be completed by the end of 2007.  The developer/seller (Hancock Investment Group, LLC) will construct and install the public road "Maple Trail" after three (3) lots of the Maple Trail development has sold and closed.  The city sewer assessment will be established by the ALEXANDRIA LAKE AREA SANITARY DISTRICT.  The developer's road assessment fee will be collected and escrowed at the time of closing.  Escrowed funds will be released upon initial construction of Maple Trail.

Financing:  Purchasers are required to obtain their own financing. The sale will not be contingent upon Purchasers obtaining such financing and will not be extended for that purpose. Purchasers who fail to qualify for their own financing, and subsequently fail to close the sale for that reason, will be required to release the “total deposit” to Hancock Investment Group, LLC as liquidated damages.

Sales Contract "Purchase Agreement":  At the conclusion of bidding on the Property, the successful bidder will be required to confirm their bid amount.  Each successful bidder will be required to sign a MAR Real Estate Purchase Agreement  (“Contract”) and other documentation concerning property immediately upon winning the bid. These documents will contain the precise terms and conditions of the particular sale.  All parcels are sold in “as is”, “where is” condition. Property will be sold subject to all easements, restrictions, zoning, & other matters of record.  All building permits shall be the responsibility of the buyer. Any information in the Property Evaluation Package shall be deemed to be part of these terms and conditions. However, only the Contract shall set forth Hancock Investment Group, LLC’s obligations to the successful bidder.

Closing: The Closing Date on all parcels will take place within 30 days of the auction (unless extended by Hancock Investment Group, LLC at Hancock Investment Group, LLC’s sole discretion) at Douglas County Abstract Company in Alexandria .  The Possession Date and Time will occur immediately after closing.  Purchasers will be required to pay customary closing costs including, but not limited to, documentation preparation fees, recording fees, normal pro-rations, title fees and closing fees.

Failure to close by the Buyer: If for any reason you are unable to complete the transaction, your down payment money will be forfeited.

1031 tax exchanges:  1031 tax exchange language can be included in the purchase agreement at the buyers request, however, any 1031 tax exchange shall not alter the terms, conditions, or closing date of this transaction.

Taxes: All the real estate taxes due in the year 2007 will be pro-rated between Hancock Investment Group, LLC and the Buyer.

Agency Disclosure: Chain of Lakes Realty is acting exclusively as the agent for Hancock Investment Group, LLC. You acknowledge and understand that Hancock Investment Group, LLC and Chain of Lakes Realty are not acting on your behalf in this transaction.  Hancock Investment Group, LLC reserves the right to deny any person admittance to the Auction, to postpone or cancel the Auction, to withdraw the Property from the Auction and to change any terms of the Auction or particular conditions of sale upon announcement prior to the course of the Auction.

Auction Disclaimer: All announcements made by Staci Hoffman shall take precedence over any previously written material or oral statements made. Conduct of the auction, increments of the bidding & decisions as to the high bidder will be at the direction & sole discretion of Staci Hoffman.