1099 Deerwood Apraisal

File No. 1099 Deerwood Trail J

APPRAISAL OF

LOCATED AT: 1099 Deerwood Trail Pegram, TN 37143

CLIENT: Gerry & Allyson House P. O. Box 150209 Nashville, TN 37215

AS OF: October 21, 2010

BY: Joseph P McGuigan

File No. 1099 Deerwood Trail J

Gerry House Gerry & Allyson House P. O. Box 150209 Nashville, TN 37215

File Number:

1099 Deerwood Trail J

In accordance with your request, I have appraised the real property at: 1099 Deerwood Trail Pegram, TN 37143

The purpose of this appraisal is to develop an opinion of the defined value of the subject property, as improved.

The property rights appraised are the fee simple interest in the site and improvements.

In my opinion, the defined value of the property as of

October 21, 2010

is:

$750,000 Seven Hundred Fifty Thousand Dollars

The attached report contains the description, analysis and supportive data for the conclusions, final opinion of value, descriptive photographs, assignment conditions and appropriate certifications.

Joseph P McGuigan

PURPOSE

Residential Appraisal Report

File No. 1099 Deerwood Trail J

The purpose of this appraisal report is to provide the client with a credible opinion of the defined value of the subject property, given the intended use of the appraisal.

Client Name/Intended User Gerry & Allyson House E-mail glhouse@comcast.net; ahouse@comcast.net Client Address P. O. Box 150209 Additional Intended User(s) The intended user is the client.

City Nashville

State TN

Zip 37215

SUBJECT

Intended Use This appraisal is to estimate the fair market value of the property, as of the specified date of valuation. The intended use of this appraisal is for the client to gain knowledge on market value for the subject property.

Property Address 1099 Deerwood Trail City Pegram Owner of Public Record House Legal Description Lot 15 Deerbrook Estate (Deed Book128, Page 739, Deed Book 269, Page 562) Assessor's Parcel # 28.19, 52.00 Tax Year 2009 Neighborhood Name Deerbrook Estate Map Reference 77

State TN Zip 37143 County Cheatham R.E. Taxes $ 1,397.00 Census Tract 701.02

SALES HISTORY

Property Rights Appraised X Fee Simple Leasehold Other (describe) My research did X did not reveal any prior sales or transfers of the subject property for the three years prior to the effective date of this appraisal.

Prior Sale/Transfer: Date N/A Price N/A Source(s) Public Records Analysis of prior sale or transfer history of the subject property (and comparable sales, if applicable) No sale within the past three years for the subject property.

Offerings, options and contracts as of the effective date of the appraisal 13, 2010. MLS

NEIGHBORHOOD

Neighborhood Characteristics

The subject property is currently listed for $1,890,000. It has been on the market since October

One-Unit Housing Trends

One-Unit Housing

Location Urban X Suburban Rural Property Values Increasing X Stable Declining Built-Up Over 75% X 25-75% Under 25% Demand/Supply Shortage X In Balance Over Supply Growth Rapid X Stable Slow Marketing Time Under 3 mths 3-6 mths X Over 6 mths Neighborhood Boundaries NORTH to River Road; EAST to the Cheatham county line; SOUTH to Highway 70; WEST to Sams Creek Road.

PRICE AGE $(000) (yrs) 50 Low New 425+ High 40+ 125 Pred.

10

Present Land Use %

One-Unit 2-4 Unit Multi-Family Commercial Other

100 % % % % %

Neighborhood Description The subject property is located within the southeastern portion of Cheatham county just west of the county line. Major roads and thoroughfare such as Pond Creek Road, nearby Highway 70, and Interstate 40 provide convenient access to all necessary support services. Downtown Nashville is within a thirty minute drive from the subject property.

Market Conditions (including support for the above conclusions) Supply and demand are generally in balance in the subject neighborhood. Buydowns and excessive sales

concessions are not typical within this area. Marketing times for properties similar to the subject property will be over a six month time period.

SITE

Dimensions Approximately +/- 53.34 Acres Area +/- 53.34 Acres Shape Irregular Specific Zoning Classification Residential Zoning Description Residential Zoning Compliance X Legal Legal Nonconforming (Grandfathered Use) No Zoning Illegal (describe) Is the highest and best use of the subject property as improved (or as proposed per plans and specifications) the present use?

Utilities

Electricity Gas Site Comments

Public

Other (describe)

GENERAL DESCRIPTION Units One X One w/Acc. unit # of Stories 1.5 Story Type X Det. Att. S-Det./End Unit X Existing Proposed Under Const.

Design (Style) 1.5 Story

IMPROVEMENTS

Public

Other (describe)

Water X X Propane Sanitary Sewer X Septic Tank There does not appear to be any operating dysfunction with the septic tank system.

X

FOUNDATION Concrete Slab X Crawl Space Full Basement Partial Basement Basement Area 0 sq. ft.

Basement Finish % Outside Entry/Exit Sump Pump

View Private Lake

X Yes

No

If No, describe.

Off-site Improvements—Type

Street Asphalt Alley None

EXTERIOR DESCRIPTION materials Foundation Walls CB Exterior Walls Frame, Log Roof Surface FS Gutters & Downspouts Aluminum Window Type DH, Casement

Public

Private

X

INTERIOR Floors Walls Trim/Finish Bath Floor Bath Wainscot

materials Hwd/Very Good Drywall/Very Good Wood/Very Good Hwd, Slate/Very Gd Slate/Very Good Year Built 1999/2009 Storm Sash/Insulated No Car Storage None Effective Age (Yrs) 5 Screens Yes Driveway # of Cars Attic None Heating X FWA HW Radiant Amenities WoodStove(s) # Driveway Surface Gravel Drop Stair Stairs Other Fuel Gas X Fireplace(s) # 2 X Fence X Garage # of Cars 2 Floor X Scuttle Cooling X Central Air Conditioning X Patio/Deck X Porch Carport # of Cars Finished Heated Individual Other Pool X Other GstHse Att. X Det. Built-in Appliances Refrigerator X Range/Oven X Dishwasher X Disposal X Microwave Washer/Dryer X Other (describe) Fan/Hood Finished area above grade contains: 7 Rooms 3 Bedrooms 3.5 Bath(s) 2,507 Square Feet of Gross Living Area Above Grade Additional Features See Attached Addendum

Comments on the Improvements

The subject property has been well maintained and is deemed to be in very good condition. Recent updates include new hardwood floors, new countertops, new recessed lights, new shades, new interior paint, rescreened the screened in deck, new hot tub, painted all decks, new 1/2 bath, new main level bath and built the guest house.

Produced using ACI software, 800.234.8727 www.aciweb.com

Page 1 of 4

This form Copyright © 2005-2010 ACI Division of ISO Claims Services, Inc., All Rights Reserved.

(gPAR™) General Purpose Appraisal Report 05/2010 GPAR1004_10 05262010

SALES COMPARISON APPROACH

Residential Appraisal Report FEATURE SUBJECT COMPARABLE SALE NO. 1 1099 Deerwood Trail 1106 Street Road Address Pegram Kingston Springs Proximity to Subject 6.73 miles SW Sale Price $ $ 719,000 Sale Price/Gross Liv. Area $ 0.00 sq. ft. $ 177.79 sq. ft.

Data Source(s) MLS, Public Records Verification Source(s) (Closed Sale) VALUE ADJUSTMENTS DESCRIPTION DESCRIPTION +(-) $ Adjustment Sale or Financing Conventional Concessions None Known Date of Sale/Time 04/09/2010 Location Suburban Suburban Leasehold/Fee Simple Fee Simple Fee Simple Site +/- 53.34 Acres +/- 43.62 acres 95,000 View Private Lake Riverview Design (Style) 1.5 Story 2 Story Quality of Construction Good Good Actual Age 1999/2009 2007 Condition Very Good Very Good Above Grade Total Bdrms.

Baths Total Bdrms.

Baths Room Count 7 3 3.5 12 5 3 3,000 Gross Living Area 40.00 2,507 sq. ft.

4,044 sq. ft.

-61,480 Basement & Finished None 1758 SF -17,580 Rooms Below Grade No Finished No Finished Functional Utility Adequate Adequate Heating/Cooling Central Central Energy Efficient Items Average Average Garage/Carport 2/Garage 2/Garage Porch/Patio/Deck WrpPr,LrgDck,ScPr WrpPor, WrapBalc 5,000 FPs, Etc 2 FPs FP 3,000 Fence, Etc Fence,Gate, Dock None 10,000 Driveway Gravel Gravel Net Adjustment (Total) X + $ 36,940 Adjusted Sale Price Net Adj. 5.1 % of Comparables Gross Adj. 27.1 % $ 755,940 Summary of Sales Comparison Approach See Attached Addendum

File No. 1099 Deerwood Trail J

COMPARABLE SALE NO. 2 5820 Craft Road Joelton 10.27 miles NE $ 650,000 $ 162.18 sq. ft.

MLS, Public Records (Closed Sale) DESCRIPTION +(-) $ Adjustment Conventional None Known 11/04/2008 Suburban Fee Simple +/- 51 acres/Infer 145,000 Creek 1.5 Story Average/Good 15,000 1986 Good 20,000

COMPARABLE SALE NO. 3 3409 Flewellyn Road Cedar Hill 21.71 miles N $ 510,000 $ 154.64 sq. ft.

MLS, Public Records (Closed Sale) DESCRIPTION +(-) $ Adjustment Conventional Seller Participation -2,000 09/30/2010 Suburban Fee Simple +/- 31.28 acres 210,000 Similar Residential 1 Story Average/Good 15,000 2001 Very Good

Total Bdrms.

Total Bdrms.

10

4

Baths

3.5 4,008 sq. ft.

576 SF 488 Finished Adequate Central Average 3/Garage, 3/Carprt Porch, Deck FP Fence, Barn Gravel X + $ Net Adj. 15.9 % Gross Adj. 46.5 % $

10

Baths

4

3.5 -60,040 3,298 sq. ft.

-5,760 None -14,640 No Finished Adequate Central Average -12,000 None 20,000 1800 SF Porches 3,000 FP -7,000 Fence, Barn Gravel 103,560 X + $ Net Adj. 41.1 % 753,560 Gross Adj. 57.0 % $

-31,640

12,000 10,000 3,000 -7,000 209,360 719,360

COST APPROACH TO VALUE

COST APPROACH

Site Value Comments The site value has been derived from the sale of similar sites within the competitive market area and from prior appraisal files.

ESTIMATED REPRODUCTION OR X REPLACEMENT COST NEW Source of cost data Marshall & Swifts Cost Handbook / Appraiser Files

OPINION OF SITE VALUE . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . = $ Dwelling 2,507 Sq. Ft. @ $ 135.00. . . . . . . . . . . . = $

Quality rating from cost service Average Effective date of cost data 09/2010 Comments on Cost Approach (gross living area calculations, depreciation, etc.)

Cost analysis was derived from the Marshall & Swift Residential Cost Handbook, local builders estimates, and the appraisers own cost files. Square foot calculations were obtained by pulling a tape measure around the perimeter of the building. The remaining economic life of the subject property is 60 years based on an overall life expectancy of 65 years.

None Sq. Ft. @ $ .. .. .. .. .. .. = Large Deck, Scr Deck, WrapPorch,2FPs,Fence,Gate,Dock Garage/Carport 441 Sq. Ft. @ $ 25.00. . . . . . . . . . . . = Total Estimate of Cost-New . .. .. .. .. .. . = Less 65 Physical Functional External Depreciation $31,958 = Depreciated Cost of Improvements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . = "As-is" Value of Site Improvements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . = INDICATED VALUE BY COST APPROACH . . . . . . . . . . . . . . . . . . . . . .

$ $

400,000 338,445 0 50,000 11,025 399,470

$( $ $

31,958 ) 367,512 10,000

$

= $

777,500

INCOME

INCOME APPROACH TO VALUE

Estimated Monthly Market Rent $ X Gross Rent Multiplier Summary of Income Approach (including support for market rent and GRM)

=$

Omitted Indicated Value by Income Approach

Cost Approach (if developed) $ 777,500 Income Approach (if developed) $ Omitted Because buyers rely heavily on comparisons, the direct sales comparison approach is considered the best indicator of market value. The cost approach supports the sales comparison approach. There was insufficient data available to process the income approach.

RECONCILIATION

Indicated Value by: Sales Comparison Approach $ 750,000

This appraisal is made X "as is," subject to completion per plans and specifications on the basis of a hypothetical condition that the improvements have been completed, subject to the following repairs or alterations on the basis of a hypothetical condition that the repairs or alterations have been completed subject to the following: The subject property has been appraised "as is".

Based on the scope of work, assumptions, limiting conditions and appraiser's certification, my (our) opinion of the defined value of the real property that is the subject of this report is $

750,000

as of 10/21/2010

, which is the effective date of this appraisal.

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Page 2 of 4

MCGUIGAN & ASSOCIATES, LLC

This form Copyright © 2005-2010 ACI Division of ISO Claims Services, Inc., All Rights Reserved.

(gPAR™) General Purpose Appraisal Report 05/2010 GPAR1004_10 05262010

SALES COMPARISON APPROACH

Residential Appraisal Report FEATURE SUBJECT 1099 Deerwood Trail Address Pegram Proximity to Subject Sale Price $ Sale Price/Gross Liv. Area $ 0.00 sq. ft.

Data Source(s) Verification Source(s) VALUE ADJUSTMENTS DESCRIPTION Sale or Financing Concessions Date of Sale/Time Location Suburban Leasehold/Fee Simple Fee Simple Site +/- 53.34 Acres View Private Lake Design (Style) 1.5 Story Quality of Construction Good Actual Age 1999/2009 Condition Very Good Above Grade Total Bdrms.

Baths Room Count 7 3 3.5 Gross Living Area 40.00 2,507 sq. ft.

Basement & Finished None Rooms Below Grade No Finished Functional Utility Adequate Heating/Cooling Central Energy Efficient Items Average Garage/Carport 2/Garage Porch/Patio/Deck WrpPr,LrgDck,ScPr FPs, Etc 2 FPs Fence, Etc Fence,Gate, Dock Driveway Gravel Net Adjustment (Total) Adjusted Sale Price of Comparables Summary of Sales Comparison Approach

File No. 1099 Deerwood Trail J

COMPARABLE SALE NO. 4 3385 Bailey Road Franklin 20.53 miles S $ 1,397,000 $ 482.06 sq. ft.

MLS, Public Records (Closed Sale) DESCRIPTION +(-) $ Adjustment Cash None Known 07/30/2009 Suburban Fee Simple +/- 38.94 acres/Sup -185,000 Pond 2 Story Good 1982 Very Good

COMPARABLE SALE NO. 5 5501 Leipers Creek Road Franklin 22.11 miles S $ 875,000 $ 214.78 sq. ft.

MLS, Public Records (Closed Sale) DESCRIPTION +(-) $ Adjustment Conventional None Known 08/30/2010 Suburban Fee Simple +/- 31 acres/Super -65,000 Pond 2 Story Average/Good 15,000 1982 Good 20,000

COMPARABLE SALE NO. 6 7322 Old Clarksville Pike Joelton 11.50 miles NNE $ 390,000 $ 102.69 sq. ft.

MLS, Public Records (Closed Sale) DESCRIPTION +(-) $ Adjustment Conventional None Known 09/01/2009 Suburban Fee Simple +/- 36 acres/Infer 170,000 Similar Residential 1 Story Average/Good 15,000 1986 Good 20,000

Total Bdrms.

Total Bdrms.

Total Bdrms.

9

3

Baths

3 2,898 sq. ft.

None No Finished Adequate Central Average None Porch, Deck FP Fn,Gate,Barn,Dock Gravel + X $ Net Adj. -12.7% Gross Adj. 18.2 % $

3,000 -15,640

12,000 20,000 3,000 -15,000 177,640 1,219,360

8

3

Baths

2.5 4,074 sq. ft.

None No Finished Adequate Central Average 4/Garage Porch, Cov Patio FP Fence, Barn Asphalt + X $ Net Adj. -10.6 % Gross Adj. 25.2 % $

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Additional Comparables

6,000 -62,680

-12,000 20,000 3,000 -7,000 -10,000 92,680 782,320

8

3

Baths

3.5 3,798 sq. ft.

1740SF No Finished Adequate Central Average 4/Basement Porch, Deck FP Barn Gravel X + $ Net Adj. 42.6 % Gross Adj. 80.5 % $

-51,640 -17,400

12,000 20,000 3,000 -5,000 165,960 555,960

This form Copyright © 2005-2010 ACI Division of ISO Claims Services, Inc., All Rights Reserved.

(gPAR™) General Purpose Appraisal Report 05/2010 GPAR1004_10 05262010

SALES COMPARISON APPROACH

Residential Appraisal Report FEATURE SUBJECT 1099 Deerwood Trail Address Pegram Proximity to Subject Sale Price $ Sale Price/Gross Liv. Area $ 0.00 sq. ft.

Data Source(s) Verification Source(s) VALUE ADJUSTMENTS DESCRIPTION Sale or Financing Concessions Date of Sale/Time Location Suburban Leasehold/Fee Simple Fee Simple Site +/- 53.34 Acres View Private Lake Design (Style) 1.5 Story Quality of Construction Good Actual Age 1999/2009 Condition Very Good Above Grade Total Bdrms.

Baths Room Count 7 3 3.5 Gross Living Area 40.00 2,507 sq. ft.

Basement & Finished None Rooms Below Grade No Finished Functional Utility Adequate Heating/Cooling Central Energy Efficient Items Average Garage/Carport 2/Garage Porch/Patio/Deck WrpPr,LrgDck,ScPr FPs, Etc 2 FPs Fence, Etc Fence,Gate, Dock Driveway Gravel Net Adjustment (Total) Adjusted Sale Price of Comparables Summary of Sales Comparison Approach

File No. 1099 Deerwood Trail J

COMPARABLE SALE NO. 7 5873 Davis Hollow Road Franklin 22.68 miles S $ 1,200,000 $ 631.91 sq. ft.

MLS (Active Listing) DESCRIPTION +(-) $ Adjustment Active -8% -96,000 Active Suburban Fee Simple +/- 93 acres/Super -345,000 Pond 1.5 Story Good 1996 Very Good

COMPARABLE SALE NO. 8 1099 Deer View Drive Joelton 12.24 miles N $ 999,000 $ 294.43 sq. ft. $ MLS (Active Listing) DESCRIPTION +(-) $ Adjustment Active -8% -79,920 Active Suburban Fee Simple +/- 120 acres -80,000 Creek 2 Story Good 1918 25,000 Very Good

Total Bdrms.

Total Bdrms.

9

4

Baths

4 1,899 sq. ft.

1161 SF 1161 Finished Adequate Central Average 2/Garage Porch, Deck, Patio 2 FPs Fence, Barn Asphalt + X $ Net Adj. -39.0% Gross Adj. 45.6 % $

Baths

-3,000 10 4 3.5 24,320 3,393 sq. ft.

-11,610 None -34,830 No Finished Adequate Central Average None 15,000 Porch, Deck, Patio 4 FPs -7,000 None -10,000 Gravel 468,120 + X $ Net Adj. -13.9 % 731,880 Gross Adj. 26.4 % $

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Additional Comparables

COMPARABLE SALE NO. 9

$ sq. ft.

DESCRIPTION

Total Bdrms.

+(-) $ Adjustment

Baths

sq. ft.

-35,440

12,000 15,000 -6,000 10,000 + Net Adj. 859,640 Gross Adj.

139,360

-

$ % % $

This form Copyright © 2005-2010 ACI Division of ISO Claims Services, Inc., All Rights Reserved.

(gPAR™) General Purpose Appraisal Report 05/2010 GPAR1004_10 05262010

Residential Appraisal Report

File No. 1099 Deerwood Trail J

Scope of Work, Assumptions and Limiting Conditions Scope of work is defined in the Uniform Standards of Professional Appraisal Practice as " the type and extent of research and analyses in an assignment." In short, scope of work is simply what the appraiser did and did not do during the course of the assignment. It includes, but is not limited to: the extent to which the property is identified and inspected, the type and extent of data researched, the type and extent of analyses applied to arrive at opinions or conclusions.

The scope of this appraisal and ensuing discussion in this report are specific to the needs of the client, other identified intended users and to the intended use of the report. This report was prepared for the sole and exclusive use of the client and other identified intended users for the identified intended use and its use by any other parties is prohibited. The appraiser is not responsible for unauthorized use of the report.

The appraiser's certification appearing in this appraisal report is subject to the following conditions and to such other specific conditions as are set forth by the appraiser in the report. All extraordinary assumptions and hypothetical conditions are stated in the report and might have affected the assignment results.

1. The appraiser assumes no responsibility for matters of a legal nature affecting the property appraised or title thereto, nor does the appraiser render any opinion as to the title, which is assumed to be good and marketable. The property is appraised as though under responsible ownership.

2. Any sketch in this report may show approximate dimensions and is included only to assist the reader in visualizing the property. The appraiser has made no survey of the property.

3. The appraiser is not required to give testimony or appear in court because of having made the appraisal with reference to the property in question, unless arrangements have been previously made thereto.

4. Neither all, nor any part of the content of this report, copy or other media thereof (including conclusions as to the property value, the identity of the appraiser, professional designations, or the firm with which the appraiser is connected), shall be used for any purposes by anyone but the client and other intended users as identified in this report, nor shall it be conveyed by anyone to the public through advertising, public relations, news, sales, or other media, without the written consent of the appraiser.

5. The appraiser will not disclose the contents of this appraisal report unless required by applicable law or as specified in the Uniform Standards of Professional Appraisal Practice.

6. Information, estimates, and opinions furnished to the appraiser, and contained in the report, were obtained from sources considered reliable and believed to be true and correct.

However, no responsibility for accuracy of such items furnished to the appraiser is assumed by the appraiser.

7. The appraiser assumes that there are no hidden or unapparent conditions of the property, subsoil, or structures, which would render it more or less valuable. The appraiser assumes no responsibility for such conditions, or for engineering or testing, which might be required to discover such factors. This appraisal is not an environmental assessment of the property and should not be considered as such.

8. The appraiser specializes in the valuation of real property and is not a home inspector, building contractor, structural engineer, or similar expert, unless otherwise noted. The appraiser did not conduct the intensive type of field observations of the kind intended to seek and discover property defects. The viewing of the property and any improvements is for purposes of developing an opinion of the defined value of the property, given the intended use of this assignment. Statements regarding condition are based on surface observations only. The appraiser claims no special expertise regarding issues including, but not limited to: foundation settlement, basement moisture problems, wood destroying (or other) insects, pest infestation, radon gas, lead based paint, mold or environmental issues. Unless otherwise indicated, mechanical systems were not activated or tested.

This appraisal report should not be used to disclose the condition of the property as it relates to the presence/absence of defects. The client is invited and encouraged to employ qualified experts to inspect and address areas of concern. If negative conditions are discovered, the opinion of value may be affected.

Unless otherwise noted, the appraiser assumes the components that constitute the subject property improvement(s) are fundamentally sound and in working order.

Any viewing of the property by the appraiser was limited to readily observable areas. Unless otherwise noted, attics and crawl space areas were not accessed. The appraiser did not move furniture, floor coverings or other items that may restrict the viewing of the property.

9. Appraisals involving hypothetical conditions related to completion of new construction, repairs or alteration are based on the assumption that such completion, alteration or repairs will be competently performed.

10. Unless the intended use of this appraisal specifically includes issues of property insurance coverage, this appraisal should not be used for such purposes. Reproduction or Replacement cost figures used in the cost approach are for valuation purposes only, given the intended use of the assignment. The Definition of Value used in this assignment is unlikely to be consistent with the definition of Insurable Value for property insurance coverage/use.

11. The ACI General Purpose Appraisal Report (GPAR™) is not intended for use in transactions that require a Fannie Mae 1004/Freddie Mac 70 form, also known as the Uniform Residential Appraisal Report (URAR).

Additional Comments Related To Scope Of Work, Assumptions and Limiting Conditions

The scope of this assignment included an exterior and interior inspection of the subject property on 10/21/2010. Because buyers rely heavily on comparisons, the direct sales comparison approach is considered the best indicator of market value. The cost approach supports the sales comparison approach. There was insufficient data available to process the income approach.

Produced using ACI software, 800.234.8727 www.aciweb.com

Page 3 of 4

This form Copyright Š 2005-2010 ACI Division of ISO Claims Services, Inc., All Rights Reserved.

(gPAR™) General Purpose Appraisal Report 05/2010 GPAR1004_10 05262010

Residential Appraisal Report

File No. 1099 Deerwood Trail J

Appraiser's Certification The appraiser(s) certifies that, to the best of the appraiser's knowledge and belief:

1. The statements of fact contained in this report are true and correct.

2. The reported analyses, opinions, and conclusions are limited only by the reported assumptions and limiting conditions and are the appraiser's personal, impartial, and unbiased professional analyses, opinions, and conclusions.

3. Unless otherwise stated, the appraiser has no present or prospective interest in the property that is the subject of this report and has no personal interest with respect to the parties involved.

4. The appraiser has no bias with respect to the property that is the subject of this report or to the parties involved with this assignment.

5. The appraiser's engagement in this assignment was not contingent upon developing or reporting predetermined results.

6. The appraiser's compensation for completing this assignment is not contingent upon the development or reporting of a predetermined value or direction in value that favors the cause of the client, the amount of the value opinion, the attainment of a stipulated result, or the occurrence of a subsequent event directly related to the intended use of this appraisal.

7. The appraiser's analyses, opinions, and conclusions were developed, and this report has been prepared, in conformity with the Uniform Standards of Professional Appraisal Practice.

8. Unless otherwise noted, the appraiser has made a personal inspection of the property that is the subject of this report.

9. Unless noted below, no one provided significant real property appraisal assistance to the appraiser signing this certification. Significant real property appraisal assistance provided by:

Jared Smith Certified Residential Appraiser #3556 has contributed significantly to the completion of this report.

Additional Certifications:

Definition of Value:

Other Value: X Market Value Source of Definition: Fannie Mae Market value is 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.

ADDRESS OF THE PROPERTY APPRAISED: 1099 Deerwood Trail Pegram, TN 37143 EFFECTIVE DATE OF THE APPRAISAL: 10/21/2010 APPRAISED VALUE OF THE SUBJECT PROPERTY $ 750,000 APPRAISER

SUPERVISORY APPRAISER

Signature: Name: Joseph P McGuigan State Certification # 00003168 or License # or Other (describe):

Signature: Name: State Certification # or License # State:

State #:

State: TN Expiration Date of Certification or License: 12/31/2011 Date of Signature and Report: 11/04/2010 Date of Property Viewing: 10/21/2010 Degree of property viewing:

X Interior and Exterior

Exterior Only

Expiration Date of Certification or License: Date of Signature: Date of Property Viewing: Degree of property viewing: Interior and Exterior Exterior Only

Did not personally view

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Page 4 of 4

MCGUIGAN & ASSOCIATES, LLC

This form Copyright Š 2005-2010 ACI Division of ISO Claims Services, Inc., All Rights Reserved.

(gPAR™) General Purpose Appraisal Report 05/2010 GPAR1004_10 05262010

ADDENDUM Client: Gerry & Allyson House Property Address: 1099 Deerwood Trail City: Pegram

State: TN

File No.: 1099 Deerwood Trail J Case No.: Zip: 37143

Additional Features Additional features include a 23 foot vaulted beamed ceiling, five skylights and a fireplace in the living room, corian countertops and ceramic tile backsplash in the kitchen, skylight in the main house bedroom, vaulted beamed ceiling in the bedroom above the garage, granite countertops in the bath over the garage, 18 foot vaulted wood beam ceiling, wet bar and a fireplace in the living room of the guest house, large deck, screened porch, covered wrap porch around the guest house, two private lakes with small dock and a gate with wrought iron fencing and stone column.

Comments on Sales Comparison An extensive search was conducted of all of Cheatham, Dickson, Robertson, Maury and portions of Davidson and Williamson Counties in an effort to find similar sales. Extremely few sales were found. Normal time restrictions were also extended in an effort to find the best sales. Sales two, four and six exceed normal time restrictions of one year. The above chosen comparables are from the subject's competitive market area and offer good evidence of market value. These sales were chosen due to their similarity to the subject in size and appeal. Site adjustments were made on a per site basis with regards to size, location and view. Sales one, two, three, five, six, seven and eight exceed normal percentage adjustment parameters due to the necessary adjustments. All sales exceed normal distance restrictions but still provide good evidence of market value. Condition and age adjustments were made due to differences in the original date of construction and updating. Quality of construction adjustments were made with regards to the subject's superior upgrades concerning the kitchen and baths. Sales seven and eight are current active listings that have been provided to lend additional support to the appraised value. These sales have been adjusted using a list/sales price ratio of 92% derived from our analysis of the marketplace. All sales were given consideration in estimating the market value for the subject property.

Addendum Page 1 of 1

FLOORPLAN

Client: Gerry & Allyson House Property Address: 1099 Deerwood Trail City: Pegram

State:

File No.: 1099 Deerwood Trail J Case No.: Zip: 37143

TN

60.5' 14.5'

15.0'

6.0'

Living Room

Deck

19.0'

27.0'

11.0'

Kitchen

Bath

Bedroom

3.0'

16.0'

25.5'

15.5'

21.0'

Bedroom

15.0'

Screened

Deck

12.0'

24.5'

8.5'

29.0'

Deck

Utility

Bath

21.0'

54.5'

16.0'

16.0'

13.5'

28.0' Deck

3.5'

5.5'

32.0'

34.5'

21.0'

1/2 Bath

Office/ Bedroom Living Room Bath

8.5'

Loft

10.0'

37.0'

15.0'

2 Car Garage

20.5'

18.0'

21.0'

8.0'

18.0'

26.0' Porch

34.0'

Sketch by Apex IV™

Comments:

AREA CALCULATIONS SUMMARY Code

Description

GLA1

First Floor Main Hou

1089.00

GLA2

First Floor Abv Grge First Floor Gst Hse 2nd Floor Main House

441.00 707.25 270.00

P/P

GAR

Deck Screened Porch Porch Garage

TOTAL LIVABLE

Size

LIVING AREA BREAKDOWN Net Totals

2237.25 270.00

1716.75 217.50 597.00 441.00

(rounded)

Breakdown

Subtotals

First Floor Main Hou

2531.25 441.00

2507

12.0 x 54.5 15.0 x 29.0 First Floor Abv Grge

654.00 435.00

21.0 x 21.0 First Floor Gst Hse

441.00

20.5 x 34.5 2nd Floor Main House 15.0 x 18.0

707.25

5 Calculations Total (rounded)

270.00

2507

LOCATION MAP

Client: Gerry & Allyson House Property Address: 1099 Deerwood Trail City: Pegram

State:

TN

File No.: 1099 Deerwood Trail J Case No.: Zip: 37143

SUBJECT PROPERTY PHOTO ADDENDUM

Client: Gerry & Allyson House Property Address: 1099 Deerwood Trail City: Pegram

State:

TN

File No.: 1099 Deerwood Trail J Case No.: Zip: 37143

FRONT VIEW OF SUBJECT PROPERTY

Appraised Date: October 21, 2010 Appraised Value: $ 750,000

REAR VIEW OF SUBJECT PROPERTY

STREET SCENE

Client: Gerry & Allyson House Property Address: 1099 Deerwood Trail City: Pegram

State:

Produced using ACI software, 800.234.8727 www.aciweb.com

TN

File No.: 1099 Deerwood Trail J Case No.: Zip: 37143

PHT6

Client: Gerry & Allyson House Property Address: 1099 Deerwood Trail City: Pegram

State:

Produced using ACI software, 800.234.8727 www.aciweb.com

TN

File No.: 1099 Deerwood Trail J Case No.: Zip: 37143

PHT6

Client: Gerry & Allyson House Property Address: 1099 Deerwood Trail City: Pegram

COMPARABLE PROPERTY PHOTO ADDENDUM File No.: 1099 Deerwood Trail J Case No.: State: TN Zip: 37143

COMPARABLE SALE #1

1106 Street Road Kingston Springs Sale Date: 04/09/2010 Sale Price: $ 719,000

COMPARABLE SALE #2

5820 Craft Road Joelton Sale Date: 11/04/2008 Sale Price: $ 650,000

COMPARABLE SALE #3

3409 Flewellyn Road Cedar Hill Sale Date: 09/30/2010 Sale Price: $ 510,000

Client: Gerry & Allyson House Property Address: 1099 Deerwood Trail City: Pegram

COMPARABLE PROPERTY PHOTO ADDENDUM File No.: 1099 Deerwood Trail J Case No.: State: TN Zip: 37143

COMPARABLE SALE #4

3385 Bailey Road Franklin Sale Date: 07/30/2009 Sale Price: $ 1,397,000

COMPARABLE SALE #5

5501 Leipers Creek Road Franklin Sale Date: 08/30/2010 Sale Price: $ 875,000

COMPARABLE SALE #6

7322 Old Clarksville Pike Joelton Sale Date: 09/01/2009 Sale Price: $ 390,000

Client: Gerry & Allyson House Property Address: 1099 Deerwood Trail City: Pegram

COMPARABLE PROPERTY PHOTO ADDENDUM File No.: 1099 Deerwood Trail J Case No.: State: TN Zip: 37143

COMPARABLE SALE #7

5873 Davis Hollow Road Franklin Sale Date: Active Sale Price: $ 1,200,000

COMPARABLE SALE #8

1099 Deer View Drive Joelton Sale Date: Active Sale Price: $ 999,000

COMPARABLE SALE #9

Sale Date: Sale Price: $

File No. 1099 Deerwood Trail J

********* INVOICE *********

File Number: 1099 Deerwood Trail J Gerry House

Invoice # : Order Date : Reference/Case # : PO Number :

32967

1099 Deerwood Trail Pegram, TN 37143

$ $ -------------Invoice Total State Sales Tax @ Deposit Deposit Amount Due

Terms:

Please Make Check Payable To: PAID

Fed. I.D. #:

700.00 $ 0.00 $ 700.00 ) ($ ($ ) -------------0.00 $