PROPERTY REPORT

NOTICE AND DISCLAIMER

BY OFFICE OF INTERSTATE LAND SALES REGISTRATION

U.S. DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT

The Interstate Land Sales Full Disclosure Act specifically prohibits any representation to the effect that the Federal Government has in any way passed upon the merits of, or given approval to this subdivision, or passed upon the value, if any, of the property.

It is unlawful for any one to make, or cause to be made to any prospective purchaser, any representation contrary to the foregoing or any representation which differ from the statements in this Property Report. If any such representations are made, please notify the Office of Interstate Land Sales Registration at the following address:

Office of Interstate Land Sales Registration,

HUD Building, 451 Seventh Street, S. W.

Washington, D.C. 20410

Inspect the property and read all documents. See professional advice.

Unless you receive this property report prior to or at the time you enter into a contract, you may void the contract by notice to the seller.

If you receive the Property Report less than 48 hours prior to signing a contract or agreement you have until midnight of the third business day following the consummation of the transaction to revoke your contract by notice to the seller.

1. Name(s) of Developer: WISCONSIN RECREATIONAL PROPERTIES, INC.

Address: 123 North Main Street

Janesville, WI 53534

2. Name of Subdivision: WISCONSIN’S ROCL RIVER LEISURE ESTATES

Location: Rock County, Wisconsin

Effective Date of property Report: February 5, 1976

IMPORTANT READ CAREFULLY

Name of Subdivision: Wisconsin’s Rock River Leisure Estates

By signing this receipt you acknowledge that you have received a copy of the Property Report prepared pursuant to the Rules and Regulations of the Office of Interstate Land Sales Registration, U. S. Department of Housing and Urban Development.

Received by: ………………………………………………………………………………………………………………..

Street Address: …………………………………………………………………………………………………………….

Date: …………………………………………….

City: …………………………………………….. State: ……………………………………….

Zip: …………………………

Notwithstanding your signature by which you acknowledged that you received the Property Report you still have other important rights under the Interstate Land Sales Full Disclosure Act.

(b) THIS OFFERING CONSISTS OF:

Lots 8 - 164, inclusive, as shown on the plats of Wisconsin's Rock River Leisure Estates, recorded June 13, 1975 in Volume 27 Plats, Pages 21, 22, 23 and 24, in the Register's Office, Rock County, Wisconsin. Lots 8, 9,10,11,158,159,160,161,162,163 and 164 are "Permanent Home Sites". Lots 12, 13, 14,15,16,17 and 18 are "Vacation Cottage Sites". The remaining lots in this offering are "Recreational Vehicle Sites". It is estimated that there will be 750 lots in the entire subdivision.

3. LIST NAMES AND POPULATIONS OF SURROUNDING COMMUNITIES

AND LIST DISTANCES OVER PAVED AND UNPAVED ROADS TO THE SUBDIVISION.

NAME OF COMMUNITY POPULATION DISTANCE OVER TOTAL

PAVED UNPAVED

ROADS ROADS

(a)	Janesville, WI *	46,426	11.0	0	11.0
(b)	Edgerton, WI	4,156	3.8	0	3.8
(e)	Milton, WI	3,699	6.2	0	6.2
(d)	Madison, WI	173,258	33.0	0	33.0
(e)	Chicago, IL	3,450,000	115.0	0	115.0
* County Seat of Rock County, WI

4. COMPLETE ALL ITEMS UNDER THIS PARAGRAPH REGARDLESS OF WHETHER THE SALE WILL BE AN INSTALLMENT OR CASH SALE.

(a) WI LL THE SALES CONTRACT BE RECORDABLE? YES OR NO?

Yes. The contract is recordable and may be recorded at your expense.

(b) IN THE ABSENCE OF RECORDING THE CONTRACT OR DEED, COULD THIRD

PARTIES OR CREDITORS OF ANY PERSON HAVING AN INTEREST IN THE LAND ACQUIRE TITLE TO THE PROPERTY FREE OF ANY OBLIGATION TO DELIVER A DEED?

YES OR NO?__________ EXPLAIN ________________

Yes. In the absence of recording the contract or deed, your interest in the property may be defeated by such third parties as subsequent purchasers or creditors of any person having an interest in the land.

(c) STATE WHETHER AND/OR WHEN THE CONTRACT OR DEED WILL BE RECORDED,

AND WHO WILL RECORD IT. STATE WHO WILL BEAR THE COSTS OF RECORDATION, AND THE AMOUNT IF THOSE COSTS ARE TO BE BORNE BY THE PURCHASER.

The Developer will not record your Agreement of Sale but you may do so at your own expense.

Recordation fees will range from Two Dollars ($2.00) to Four Dollars ($4.00). The Deed will be recorded by the Developer and delivered to you within ninety (90) days of your payment in full of the purchase price. The cost of recordation of the deed is included in the closing costs paid by the purchaser as part of the contract price.

(d) WHAT PROVISION, IF ANY, HAS BEEN MADE FOR REFUNDS IF BUYER DEFAULTS? IF NONE, AND THE BUYERS PAYMENTS ARE TO BE RETAINED, STATE WHETHER HIS LOSS WILL BE LIMITED TO THE AMOUNT OF HIS PAYMENTS TO DATE, OR WHETHER HE WILL BE RESPONSIBLE TO THE DEVELOPER OR HIS ASSIGNEES FOR ADDITIONAL DAMAGES OR FOR THE BALANCE OF HIS CONTRACT.

There is no provision for refunds. All funds received from Purchaser will be retained as damages and the Purchaser will be held responsible for the balance of the contract.

(e) STATE PREPAYMENT PENALTIES OR PRIVILEGES, IF ANY.

There are no prepayment penalties or privileges. Any unpaid balance may be paid in full on any installment date without penalty and Purchaser will receive a rebate of the unearned finance charge computed under the Rule of 78's.

5. IS THERE A BLANKET MORTGAGE OR OTHER LIEN ON THE SUBDIVISION OR PORTION THEREOF IN WHICH THE SUBJECT PROPERTY IS LOCATED? YES OR NO? IF YES, LIST BELOW AND DESCRIBE ARRANGEMENTS, IF ANY, FOR PROTECTING INTERESTS OF THE BUYER IF THE DEVELOPER DEFAULTS IN PAYMENT OF THE LIEN OBLIGATION. IF THERE IS SUCH A BLANKET LIEN, DESCRIBE ARRANGEMENTS FOR RELEASE TO A BUYER OF INDIVIDUAL LOTS WHEN THE FULL PURCHASE PRICE IS PAID.

Yes. Mortgage to the Hyde Park Bank & Trust Company of Chicago, Illinois to secure payment of $450,000.

TYPE OF LIEN

a. Mortgage to Hyde Park Bank and Trust Company of Chicago, Illinois to secure payment of $450,000 recorded June 26, 1975 as Document No. 830914 in Vol. 556 of Records, page 501, in the office of Register of Deeds for Rock County, Wisconsin.

EFFECT ON BUYERS IF DEVELOPER DEFAULTS

The mortgage allows the Developer to release individual lots from the lien of the mortgage by paying part of the selling price to the Bank (mortgagee). However, in the event that the Developer should fail to cause a lot to be released from the mortgage, the mortgage document provides that, if not sooner released, the Bank (mortgagee) will release a lot from the lien and operation of the mortgage upon payment infull of the purchase price by any third party purchaser regardless of any other defaults or failures on the part of the Developer.

6. DOES THE OFFERING CONTEMPLATE LEASES OF THE PROPERTY IN ADDITION TO, OR AS DISTINGUISHED FROM, SALES? YES OR NO?

IF YES, A LEASE ADDENDUM MUST BE COMPLETED, ATTACHED, AND MADE A PART OF THE PROPERTY REPORT.

No.

7. IS BUYER TO PAY TAXES, SPECIAL ASSESSMENTS, OR TO MAKE PAYMENTS OF ANY KIND FOR THE MAINTENANCE OF COMMON FACILITIES IN THE SUBDIVISION (a) BEFORE TAKING TITLE OR SIGNING OF LEASE OR (b) AFTER TAKING TITLE OR SIGNING OF LEASE? IF YES, COMPLETE THE SCHEDULE BELOW:

(a) Yes. A buyer is required to pay all real property taxes for his lot from the date of his contract to purchase prior to delivery of an executed deed. Buyer will also be required to pay membership dues to the Property Owners Association from the date of his contract.

(b) The Buyer will likewise be required to pay real property taxes and membership dues to the Property Owners Association after taking title.

APPROXIMATE AMOUNT OF

BUYER'S ANNUAL PAYMENTS

TAXES: The approximate annual amount of taxes

ranges from $60 to $178. Consult local taxing authorities for precise amounts.

SPECIAL ASSESSMENTS: None

PAYMENTS TO PROPERTY OWNERS

ASSOCIATION: This amount is currently set at $200 per year per lot and cannot exceed $300 per year per lot without a 2/3rds vote of the members. (minimum 250 members)

OTHER: No.

SPECIFY: Not applicable.

8. (a) WILL BUYER'S DOWNPAYMENT AND INSTALLMENT PAYMENTS BE PLACED IN ESCROW OR OTHERWISE SET ASIDE? YES OR NO? IF YES, WITH WHOM? IF NOT, WILL TITLE BE HELD IN TRUST OR IN ESCROW?

No. Title will not be held in trust or escrow.

(b) EXCEPT FOR THOSE PROPERTY RESERVATIONS WHICH LAND DEVELOPERS COMMONLY CONVEY OR DEDICATE TO LOCAL BODIES OR PUBLIC UTILITIES FOR THE PURPOSE OF BRINGING PUBLIC SERVICES TO THE LAND BEING DEVELOPED, WILL BUYER RECEIVE A DEED FREE OF EXCEPTIONS?

YES OR NO? IF NO, LIST ALL RESTRICTIONS, EASEMENTS, COVENANTS, RESERVATIONS AND THEIR EFFECT UPON BUYER.

Yes. The Purchaser's deed will be subject to certain restrictions which are designed to insure the desirable character of the development as a recreational and residential community. The covenants also provide that that the Developer has a right of first refusal of any lot sold by a lot owner in the development. This does not mean that the Developer will repurchase your lot; rather, it gives him the option to do so if he so desires. These restrictions are attached hereto and are incorporated herein by reference. These restrictions are important and you are encouraged to study them carefully.

(c) LIST THE PERMISSIBLE USES OF THE PROPERTY BASED UPON THE RESTRICTIVE COVENANTS, AND WHICH ARE CONSISTENT WITH LOCAL ZONING ORDINANCES.

There are no local zoning ordinances affecting the subdivision. However, the Declaration of Restrictive Covenants limits the use of lots in the subdivision to the following purposes only:

1. "Permanent Home Sites" are lots consisting of a minimum of 20,000 square feet on which the owner is allowed to construct one dwelling unit of a minimum size as specified in the covenants.

2. "Vacation Cottage Sites" are lots consisting of a minimum of 9,000 square feet on which the owner may construct one dwelling unit of a minimum size as specified in the covenants.

3. "Recreational Vehicle Sites" are lots consisting of less than 9,000 square feet on which the owner may construct only non-dwelling structures such as storage sheds and garages. These lots can not utilized as permanent home sites.

The Rock River Leisure Estates Homeowners Association, Inc., may alter your plans to build on or to use your lot. The Board of Directors of the Property Owners' Association reserves the right to approve of all construction plans. The Developer has a controlling interest in the Rock River Leisure Estates Home Owners' Association, Inc., until the sale of the 250th lot. The Board of Directors will consist of two (2) individuals appointed by the Developer and one lot owner elected by the membership until 250 lots are sold. After the sale of the 250th lot the Board will consist of seven (7) members, all of whom will be lot owners.

In addition, lot purchasers will be required to obtain a building permit from Fulton Township, Rock County, Wisconsin before they will be able to construct on their lot. The cost of a permit is $5 on any valuation up to and including $10,000 and an additional $.50 per thousand valuation over that amount.

(d) LIST ALL EXISTING OR PROPOSED UNUSUAL CONDITIONS RELATING TO THE LOCATION OF THE SUBDIVISION AND TO NOISE, SAFETY OR OTHER NUISANCES WHICH AFFECT OR MIGHT AFFECT THE SUBDIVISION.

The State of Wisconsin is subject to occasional tornadoes and on the average experiences 3.52 tornadoes per year per 10,000 square mites of area. In addition due to the tree cover on the land, forest fires are a possibility during times of extreme drought.

Neither the danger from tornadoes or forest fires is so great as to justify it being declared hazardous by any federal, state or local agency. The area is subject to no special land use requirements due to the foregoing.

The subdivision is not affected by a flood plain, 100 years or otherwise, and is not in an area designated to be flood prone as identified by the Federal Insurance Administration, U. S. Department of Housing and Urban Development.

9. LIST ALL RECREATIONAL FACILITIES CURRENTLY AVAILABLE, PROPOSED, OR PARTLY COMPLETED ( E. G., SWIMMING POOLS, GOLF COURSES, SKI SLOPES, ETC.: AND COMPLETE THE FOLLOWING FORMAT FOR EACH FACILITY:

	i.		ii.	iii.	iv.	v.	vi.
Facility			%Complete	Estimated	Financial	Developer	Buyer's Costs or
				Completion	Assurance of	Obligated	Assessments
				Date	Completion
1.		Swimming	0	June 30, 1976	Escrow	Yes	$200.00* per year
		Pool
2.		Club House	0	Sept.1, 1976	Escrow	Yes	$200.00* per year
3.		Tennis Court	0	May 31,1976	Escrow	Yes	$200.00* per year
4.		Boat Dock	0	April 1, 1976	Escrow	Yes	$200.00* per year
5.		Ski Lift	0	Feb. 28, 1976	Escrow	Yes	$200.00* per year
6.		Ball Diamond	0	May 31,1976	Escrow	Yes	$200.00* per year

Although all the amenities will be constructed entirely at Developer's expense, the facilities will be operated and maintained by the Property Owners' Association with revenue derived from annual membership assessments, which cannot exceed $300 per year per lot without approval of 2/3rds of the Association's members (minimum 250 members). Developer's projections indicate that, initially, $200 per year per lot will be sufficient to maintain all amenities.

CAMP COAST TO COAST -- This development is a registered member of a reciprocal camping program which will allow purchasers to participate on a reservation basis in the use of camping sites located at participating member developments. The purchaser will receive, at the time of purchase, a membership kit which will include a directory of participating campgrounds, a membership card, reservation forms, and an identification decal. The cost to purchasers will be based upon a reservation use fee of One Dollar ($1.00) per night for use of membership camp sites, Purchasers are notified that individual memberships as well as the developer's or property owners association's license in Camp Coast to Coast may be revoked at any time for violation of the Camp Coast to Coast rules and regulations and that there is no assurance to the purchaser of a perpetual continuation of the program nor is there any guarantee of the number of participating camp sites under the program at any given time.

STATE WHO WILL OWN THE FACILITIES.

Upon the sale of the 250th lot these facilities will be owned by the Property Owners Association.

STATE AVAILABILITY OF THE FOLLOWING IN THE SUBDIVISION: STATE ANY ESTIMATED COSTS OR ASSESSMENTS TO BUYER. IF ONLY PROPOSED OR PARTLY COMPLETED, STATE ESTIMATED COMPLETION DATE, STATE PROVISIONS TO ASSURE COMPLETION AND GIVE AN ESTIMATE OF ALL COSTS TO BUYER, INCLUD!NG MAINTENANCE COSTS.

(a) ROADS:

1. ACCESS:

PAVED - Access to the subdivision is on Ellendale Road, a two-lane asphalt road maintained by the county with a 20 foot wide surface in good condition.

UNPAVED - None.

2. ROAD SYSTEM WITHIN THE SUBDIVISION:

PAVED - The road system within the subdivision is under construction and not all lots can be reached by conventional automobile at the present time. The main collector road will have a 24 foot wide plant mix asphalt surface and the arterial roads will have a 20 foot wide built-up asphalt surface. All lots in this offering will be accessible over completed roads by the end of 1975.

The maintenance of the roads will be the responsibility of the Property Owners Association which will charge an assessment initially set at $200 per year per lot, part of which will be allocated to road maintenance.

The Developer has established a Construction Escrow through Chicago Title Insurance Company as Escrow Trustee to assure the availability of adequate funds to complete the roads.

UNPAVED - None.

(b) UTILITIES:

1. WATER:

The water supply will be provided by the Rock River Leisure Estates Cooperative, a nonstock Wisconsin cooperative association, recorded on May 5, 1975 which will own and operate the water system as a cooperative.

Waterlines will be extended to all lots in this offering except for those 18 lots designated vacation cottage and permanent home sites by the end of November of 1976.

Water will be available for extension to the aforementioned 18 lots by November of 1976, but will only be extended at the request and expense of the owners thereof. At present the water system is 0% completed.

The Developer has established a Construction Escrow through Chicago Title Insurance Company as Escrow Trustee to assure the availability of adequate funds to complete the water system.

The developer has not obtained a letter or report from a cognizant health officer on the quality and purity of the water. Accordingly, there is no assurance that the available water will be either pure or of acceptable quality.

Except for the 18 lots designated vacation cottage and permanent home sites, the Developer will pay all construction and installation costs for the water system.

Owners of 18 vacation cottage and permanent home sites will be required to pay a $500 installation fee for the extension of water to their individual lots.

You will not be permitted to use individual water systems and water will not be available to your lot until after the central water system has been completed.

Lot owners will not be billed individually for water; rather, this will be included in the yearly dues assessment currently set at $200 payable to the Property Owners Association.

The Property Owners Association will, in turn, pay the cooperative for the water supplied to the subdivision.

2. ELECTRICITY:

Electricity is available through the Wisconsin Power & Light Company. 15 South River Street, Janesville, Wisconsin 53545, a regulated public utility.

Electrical facilities have not been extended to individual lots but will be by the end of November, 1976 at no expense to lot owners.

However, the Developer will be required to make an initial deposit of $56,700 with the Wisconsin Power & Light Company before electricity will be extended to the individual lots in this offering by Wisconsin Power & Light Company.

The Developer has already deposited $30.293 and intends to deposit the balance prior to June 30, 1976.

Since the Developer is not responsible for extension of electrical facilities, there is no assurance of completion.

3. GAS:

Gas will be available only to those 18 lots designated vacation cottage and permanent home sites on the plats of the subdivision.

It will be supplied by the Wisconsin Power & Light Company, 15 South River Street, Janesville, Wisconsin 53545, a regulated public utility.

Gas lines have not been extended to individual lots, but will be by the end of November of 1976 at no expense to lot owners.

Since the Developer is not responsible for Installation of the

4. TELEPHONE:

Telephone service will be provided to the subdivision by the Milton Telephone Company, 101 Hilltop Drive, Milton, Wisconsin 53563, a regulated public utility.

Lines are not available for extension to individual lots, but will be by November of 1976.

No portion of this cost will be borne by the Purchaser.

The Developer has no responsibility regarding the installation of the telephone facilities and thus cannot assure completion.

5. SEWAGE DISPOSAL:

Sewer lines will be available to the subdivision through the Consolidated Koshkonong Sanitary District, Route 2, Box 151Z Edgerton, Wisconsin 53534, a regulated public utility.

Sewage facilities have not been extended to the individual lots, but will be available for use by the end of November, 1976.

Except for those 18 lots designated vacation cottage and permanent home sites, there will be no cost to the Purchaser for connection to the system.

The 18 vacation cottage and permanent home sites will be required to pay for the cost of connection from their lot line which is estimated to be $590 per lot.

The Developer is responsible for construction of all sanitary sewer connections and for the hook-up for the subdivision to the main sewer line of the Consolidated Koshkonong Sanitary District which runs along Ellendale Road.

The Developer has established a Construction Escrow through Chicago Title Insurance Company as Escrow Trustee to assure the availability of adequate funds to complete the facilities.

You will not be permitted to use an individual sewerage disposal system; sewerage disposal will not be available to your lot until after the central sewerage system has been installed.

When the system is available for connection, lot owners will be required to pay $8.50 per month for the service regardless of use.

6. DRAINAGE AND FLOOD CONTROL:

No drainage has been or will be required to render any of the lots suitable for construction purposes.

No artificial drains, storm sewers, or flood control channels have been installed.

No drainage facilities will be constructed by the Developer except for culverts under roadways at intersections with natural swales or ditch run-offs.

The Developer has established a Construction Escrow through Chicago Title Insurance Company as Escrow Trustee to assure the availability of adequate funds to complete the facilities.

7. TELEVISION:

Television reception is available to the subdivision without cost other than of an antennae.

The estimated one-time cost to the user for installation of an antenna is $50.

(c) MUNICIPAL SERVICES:

1. FIRE PROTECTION:

Fire protection will be available to the subdivision from the Edgerton, Wisconsin Volunteer Fire Department.

The fire station is located 3.9 miles from the geographical center of the subdivision.

2. POLICE PROTECTION:

Police protection is available to the subdivision from the Rock County Sheriff's Office, Janesville, Wisconsin.

3. GARBAGE AND TRASH COLLECTION:

Garbage and trash collection service is available to the subdivision and is provided by Tom's Pick-up Service, Edgerton, Wisconsin.

This service is paid directly owner and will cost approximately $2.00 per month.

4. PUBLIC SCHOOLS:

I. ELEMENTARY SCHOOL:

The nearest elementary school is located at Edgerton, Wisconsin, approximately 1.3

miles from the subdivision.

School bus transportation is available from the subdivision.

No public transportation is available.

II. MIDDLE SCHOOL (Grades 6, 7 and 8):

The middle school is located at Edgerton, Wisconsin, approximately 4.0 miles from the subdivision.

School bus transportation is available.

There is no public transportation available.

III. HIGH SCHOOL:

The Edgerton Senior High School, Edgerton, Wisconsin, is approximately 4.7 miles from the subdivision.

School bus transportation is available from the subdivision.

There is no public transportation available.

5. MEDICAL AND DENTAL FACILITIES:

I. HOSPITAL FACILITIES:

The Edgerton Memorial Community Hospital at Edgerton, Wisconsin, has a 138-bed capacity, is a public hospital offering general services, and is located 4.4 miles from the subdivision.

Ambulance service is available to the subdivision through the Edgerton Ambulance Service of Edgerton, Wisconsin.

This is a privately owned service and the estimated cost for transporting an individual from the subdivision to the Edgerton hospital is $22.80.

II. PHYSICIANS AND DENTISTS:

There are physicians' and dentists' offices at Edgerton, Wisconsin, approximately 3.8 miles from the subdivision.

Public transportation is not available to these offices from the subdivision.

6. PUBLIC TRANSPORTATION:

Public transportation is not available from the subdivision to nearby municipalities.

The closest public transportation is the Greyhound Bus Lines serving Edgerton, Wisconsin, 3.8 miles from the subdivision.

There is also one (1) cab company in Edgerton, Wisconsin.

7. U.S. POSTAL SERVICE:

Mail is not delivered to each lot in the subdivision.

Mail will be delivered to Ellendale Road in the subdivision and placed in mail boxes arranged in alphabetical order.

The Edgerton, Wisconsin Post Office, located at 104 N. Swift Street, Edgerton, Wisconsin 53534, approximately 3.9 miles from the subdivision.

11. WILL THE WATER SUPPLY BE ADEQUATE TO SERVE THE ANTICIPATED POPULATION OF THE AREA.

Yes.

12. IS ANY DRAINAGE OF SURFACE WATER, OR USE OF FILL NECESSARY TO MAKE LOTS SUITABLE FOR CONSTRUCTION OF A ONE-STORY RESIDENTIAL STRUCTURE? IF YES, STATE WHETHER ANY PROVISION HAS BEEN MADE FOR DRAINAGE OR FILL AND GIVE ESTIMATE OF ANY COSTS BUYER WOULD INCUR.

No.

13. STATE WHETHER SHOPPING FACILITIES ARE AVAILABLE IN THE SUBDIVISION; IF NOT STATE THE DISTANCE IN MILES TO SUCH FACILITIES AND WHETHER PUBLIC TRANSPORTATIONIS AVAILABLE.

There are no shopping facilities in the subdivision.

There is a country store at Newville, Wisconsin, located approximately 1.3 miles from the subdivision which offers groceries and various other items.

The nearest full service community would be Edgerton, Wisconsin, located 3.8 miles from the subdivision.

There is no public transportation to these facilities from the subdivision.

14. APPROXIMATELY HOW MANY HOMES WERE OCCUPIED AS OF JULY 7, 1975?

One.

15. (a) STATE ELEVATION OF THE HIGHEST AND LOWEST LOTS IN THE SUBDIVISION AND BRIEFLY DESCRIBE TOPOGRAPHY AND PHYSICAL CHARACTERISTICS OF THE PROPERTY.

The highest lot in the subdivision is 982.8 feet and the elevation of the lowest is 888.6 feet. The North boundary of the subdivision is formed by the Rock River which is 200 feet wide at this point.

The land rises quickly to an elevation, at one point, of 105 feet above the river.

Once away from the river the land is rolling and the soil consists of loam, clay and gravel.

(b) STATE IN INCHES THE AVERAGE ANNUAL RAINFALL AND, IF APPLICABLE, THE

AVERAGE ANNUAL SNOWFALL FOR THE SUBDIVISION OR THE AREA IN WHICH IT IS LOCATED.

The average annual rainfall is 30.32 inches and the average annual snowfall is 39.1 inches.

(e) STATE TEMPERATURE RANGES FOR SUMMER AND WINTER, INCLUDING HIGHS, LOWS AND MEANS.

The temperature range for summer is

high 98 degrees

low 31 degrees

mean 71 degrees

The temperature range for winter is

high 54 degrees

low -30 degrees

mean 17 degrees

16. Will ANY SUBSURFACE IMPROVEMENT, OR SPECIAL FOUNDATION WORK BE NECESSARY TO CONSTRUCT ONE STORY RESIDENTIAL OR COMMERCIAL STRUCTURES ON THE LAND? YES OR NO? IF YES, STATE IF ANY PROVISION HAS BEEN MADE '\ND ESTIMATE ANY COSTS BUYER WOULD INCUR.

No.

17. STATE WHETHER THERE IS PHYSICAL ACCESS (BY CONVENTIONAL AUTOMOBILE) OVER LEGAL RIGHTS-OF-WAY TO ALL LOTS AND COMMON FACILITIES IN THE SUBDIVISION. STATE WHETHER THE ACCESS WILL BE PUBLIC OR PRIVATE ROADS AND STREETS AND WHETHER THEY WILL BE MAINTAINED BY PUBLIC OR PRIVATE FUNDS.

At present only 76 of the lots in this offering are accessible by conventional automobile over legal rights-of-way.

All roads in the subdivision will be private and will be maintained by the Property Owners Association which will charge an assessment initially not to exceed $300 per year per lot, part of which will be allocated to road maintenance.

18. HAS LAND IN THE SUBDIVISION BEEN PLATTED OF RECORD? YES OR NO? IF NOT, HAS IT BEEN SURVEYED? YES OR NO? IF NOT, STATE ESTIMATED COST TO BUYER TO OBTAIN A SURVEY.

Yes.

19. HAVE THE CORNERS OF EACH INDIVIDUAL LOT BEEN STAKED OR MARKED SO THAT THE PURCHASER CAN IDENTIFY HIS LOT? IF NOT, STATE THE ESTIMATED COST TO THE PURCHASER TO OBTAIN A SURVEY AND TO HAVE THE CORNERS OF HIS LOT STAKED OR MARKED.

Yes.

20. DOES THE DEVELOPER HAVE A PROGRAM IN EFFECT TO CONTROL SOIL EROSION, SEDIMENTATION AND FLOODING THROUGHOUT THE ENTIRE SUBDIVISION? YES OR NO? DESCRIBE THE PROGRAM, IF ANY. HAS THE PLAN BEEN APPROVED OR MUST THE PLAN BE APPROVED BY OFFICIALS RESPONSIBLE FOR THE REGULATION OF lAND DEVELOPMENT? YES OR NO. IS THE DEVELOPER OBLIGATED TO COMPLY WITH THE PLAN? YES OR NO.

No. Erosion and flood control could result in property damage and could create a health and safety hazard.

21. STATE WHETHER THE DEVELOPER IS A NEWLY FORMED ENTITY. YES OR NO. IF YES, STATE THE EFFECT WHICH THE HEAVY EXPENDITURES NECESSARY TO BEGIN A LAND DEVELOPMENT SALES OPERATION WILL HAVE ON THE DEVELOPER'S EARNINGS.

Yes. The Developer was incorporated on January 23,1975 and, due to the large expenditures necessary to begin a land development sales operation, the Developer will most likely experience a net operating loss for the first year of its operation.

SPECIAL RISK FACTORS

(a) The future value of land is very uncertain; do NOT count on appreciation.

(b) You may be required to pay the full amount of your obligation to a bank or other third party to whom the developer may assign your contract or note, even though the developer may have failed to fulfill promises he has made.

(c) Resale of your lot may be subject to the developer's restrictions, such as limitations on the posting of signs, limitations to the rights of other parties to enter the subdivision unaccompanied, membership prerequisites or approval requirements, or developer's first right of refusal.

You should check your contract for such restrictions and also note whether your lien or any other liens on the property would affect your right to sell your lot.

(d) You should consider the competition which you may experience from the developer in attempting to resell your lot and the possibility that real estate brokers may not be interested in listing your lot.

(e) Changing land development and land use regulations by government agencies may affect your ability to obtain licenses or permits or otherwise affect your ability to use the land.

FINANCIAL STATEMENT

You should carefully review the attached financial statements of the Developer (see exhibit A).

Signature of the Senior Executive Officer of the Developer