Terre du Lac - Property Information Packet by United Country Coffey Realty & Auction

INTERNET ONLY

Land Development Auction COMMERCIAL, RECREATIONAL, FARM & RESIDENTIAL 1,300± ACRES & 1,220 LOTS SOLD IN MULTIPLE TRACTS

Bidding Ends OCTOBER

1 at 2:00 pm CDT (soft close)

in conjuction with

Ken Dayley St. Louis, MO 63011

Jimmie Dean Coffey License: #AC30200042 / AU01049934 Seller: Terre Du Lac, Inc. & James Kwon Trust

855.573.5263

- MOLandAuction.com

Table of Contents 3

Property Description

Terms & Conditions

State Map

Tract Map

Contacts

City/County Information

Property Maps

Tax Information

Sellerâ&#x20AC;&#x2122;s Disclosures

Lead Based Paint Disclosure

Purchase Agreement

102

Auction Advantages

The information contained herein has been obtained from other third party sources. We have not verified its accuracy. Seller and United Country Coffey Realty and auction make no guarantee, representation or warranty whatsoever concerning any of the materials or information contained herein. It is the sole responsibility of anyone reviewing this material to evaluate the accuracy, completeness and usefulness of all information contained herein. The seller and United Country Coffey Realty and Auction make no express or implied warranties, representations or endorsements whatsoever concerning the material presented or the proposed transaction referenced in herein, including without limitation any warranties of title, non-infringement, merchantability or fitness for a particular purpose and seller and United Country Coffey Realty and Auction shall in no event be liable for any damages whatsoever resulting from the use of our reliance on any information contained herein.

Property Description

Terre Du Lac - Missouri Land/Development Opportunity Online Only Land & Development Auction 1,300+/- Acres & 1,220 Lots Sold in Multiple Tracts Bid through October 1st at 2:00pm (soft close) *Preview by appointment only* Contact Ken Dayley at 1-855-573-5263 Located just an hour south of St Louis, Terre Du Lac is an incredible 5,200+/- acre community with 16 lakes (including 4 waterskiing lakes), and its own self-contained police and fire departments. This incredible online auction event consists of 1,300 acres of land, 1,220 building lots and an office building in a unique resort community with both residential and commercial tracts available. The natural beauty and convenient location of Terre Du Lac makes it perfect for hunters, anglers and golf enthusiasts that want to live or vacation in a unique lake community.

Tracts available 1. 2a. 2b. 3. 4. 5. 6. 7. 8. 9. 10.

1,220 building lots & office building 23.624+/- acres - Commercial Site 25.4+/- acres - Commercial Site 27.1+/- acres 111.48+/- acres 94.8+/- acres 172.6+/- acres 101+/- acres 22+/- acres 20.5+/- acres 741.2+/- acres

*Seller Financing Available Agent/Broker Participation Encouraged (agent/broker registration form must be filled out)

Property Description Tract 1

1,220 lots and office building---Building lots consists of 1 Pontoon lakefront lot, 36 small lakefront lots,3 1+/acre golf course lots ,141 fairway lots on a 9-hole golf course, 57 3+/- acre estate lots , 5 2 to 5+/- acres condo sites, 30 extraordinary lake-view lots and 947 regular wooded lots (100x150). The office building contains about 3,300-sq-ft of floor space with 8 offices and 3 baths. The roof is 2 to 6 years old. Equipment includes office desks, 4 computers and a conference table. In addition, there are 2 lounges, a kitchen, laundry room with washer/ dryer, new CH&A unit and 2 large garages. The building was constructed on a concrete slab in the early 1970s.

Tract 2a

23.6+/- acres - Commercial lot-East Entrance: There exists a Dollar General store, First state Community Bank and Nash Realty building. Tract is served with central water and sewer.

Tract 2b

25.4+/- acres - Commercial lot-West Entrance: There exists a Photo shop, The Market, and Gateway Subdivision (13 lots). All served by central water and sewer.

Property Description Tract 3

27.1+/- acres - Commercial Chalet area. This land is suitable for multifamily housing such as condos or retirement homes a short walking distance to the TDL Clubhouse.

Tract 4

111.48+/- acres - Lafitte East: This property lays well for 5 to 10-acre estate lots. About 20% of its frontage is on paved road with central water and sewer installed. The balance has waterline installed. Sewer line could be extended, or aerator or septic system could be installed.

Tract 5

94.8+/- acres - Lafitte West: This land could be subdivided into 2 large gentlemenâ&#x20AC;&#x2122;s farms or possibly a horse farm. Central water is available.

Property Description Tract 6

172.6+/- acres - Plat 31 area: Originally this land was set aside for an additional 9-hole golf course, with the balance planned to contain about 190 lots to be designated as Plat 31, but was never recorded with St. Francois County. If a large gated community is built on Plat 30 and 31 there may be a need for an additional golf course. Alternatively, the land could be subdivided into 16 10-acre estate lots. Central sewers run along the boundary road with access to central water.

Tract 7

101+/- acres - Lake Marseilles area: This land is bordered by Lake Tiffany, Lake Capri and Lake Marseilles. It contains about 20 acres of residential, and storage ground for boats/ATVâ&#x20AC;&#x2122;s. The balance could be allocated for a shooting range or hunting ground, as there is abundant wild turkey and deer.

Tract 8

Area-22+/- acres - Lake Shayne: This land contains 2 parcels; 7+/- acres with a view of Lake Shayne that could be subdivided into 3 or 4 building lots. There is also a boat ramp with parking area. 15+/- acres are more suitable for a large family to build several homes and share the ground between the families.

Property Description Tract 9

20.5+/- acres - Old Airport Area: About 14 acres of land were used as a small airport in early 70â&#x20AC;&#x2122;s. Approx 6.5 acres are hilly and not suitable for aircraft use. 14+/- acres are suitable for retirement homes or townhousesmultiple. The land is fairly flat with central water and sewer. It would be an easy construction and economical building site.

Tract 10

741.2+/- acres - Big Lake site: 262+/- acres are in St Francois County with the balance being in the county of Washington; 479 acres. This land has at least 3 lake sites of 90+/-, 39+/- and 15+/- acres which could provide an extension of current Terre du Lac development. The existing amenities of 16 lakes and 27 holes of golf provide excellent facilities for residential development. This land could also be broken up to 2 estate tracts for private lake living with good hunting, golfing and country club living nearby.

Terms and Conditions TERMS & CONDITIONS Terre Du Lac - Real Estate Auction Terre Du Lac Bonne Terre, MO Legal Description

See Legal Description in the Auction Sales Contract (copy in PIP) Ø The property will be sold at Public “Online Only - Internet Auction” ending Wednesday – Oct. 1, 2014 at 2:00pm CDT (soft close) Ø The property will be Sold Subject to Seller’s Confirmation. The seller reserves the right to accept or reject any and all bids. Ø Property sells as-is with no warranties expressed or implied Ø Included in the sale is the real estate only. Ø The auction is Subject to prior sale (the property can be purchased prior to the end of the auction) Ø The seller will provide seller financing. (See attached Land Contract Agreement) (pg. 100) Ø The seller reserves the right to cancel the auction at any time prior to the final bid closing Ø Buyers Premium o An 11% buyer’s premium will be added to the final bid and charged to the buyer, the final bid plus the 11% buyer’s premium will establish the final sales price. Ø A 10% down payment must be paid by the successful bidder by direct wire transfer within 24 hours of acceptance of the auction contract by the Sellers, payable to: Preferred Land and Title Company. The down payment deposit will be non-refundable; your bidding is not conditional upon financing, so be sure you are prepared to pay cash at closing, have arranged your financing, or plan to use the available seller financing (see attached Land Contract Agreement). The balance of the purchase price, if paying cash, or the balance of the contract down payment plus the buyer’s premium, will be due via a wire transfer to the closing company, on delivery of insurable title on or before November 14, 2014. o A promissory note will be signed along with the down payment. Ø Final closing is NOT contingent upon financing. Ø The property will be conveyed by a Warranty Deed Ø The seller agrees to furnish buyer(s) with an owner’s policy of Title Insurance Policy at closing. Ø Real Estate Taxes: the taxes will be prorated to the day of closing. Ø Closing: o Closing shall take place at the office of: Preferred Land and Title Company – 12 West First Street, PO Box 708, Farmington, MO 63640, paid by the buyer. o Closing will be held on or before November 14, 2014 Ø Possession will be granted at final closing. Ø The successful Bidder shall execute an “Auction Real Estate Sales Contract” for the property immediately after being declared the Successful Bidder by the Auctioneer. Ø Each potential Bidder is responsible for conducting at their own risk, their own independent inspections, investigations, and due diligence concerning the property. o Further; Property sells as-is with no warranties expressed or implied Ø United Country Trophy Properties and United Country Coffey Realty & Auction and their representatives are exclusive agents of the Seller. Ø All announcements made up to the final close of the Auction bidding take precedence over all advertising, oral or printed material. Ø All information was gathered from reliable sources and is believed to be correct as of the date this brochure is published; however the seller or auctioneers have not independently verified this

Terms and Conditions information. Auction plats and drawings are not to be relied on and are for representation purposes only. Its accuracy is not warranted in any way. There is no obligation on the part of the sellers or auctioneer to update this information.

SALE SITE: Internet Only VIEWING INSTRUCTIONS: By Appointment Only The viewing of the property will be at the viewerâ&#x20AC;&#x2122;s own risk the Seller, neither Auctioneer nor the Listing Agency be held responsible for accidents. For questions call Ken Dayley at United Country Trophy Properties (314) 409-4568 or Jimmie Dean Coffey at United Country Coffey Realty & Auction (812) 824-6000 office (812) 360-6005 cell. I do hereby agree to these Auction Terms & Conditions.

Seller

Date

Buyer

Date

Buyer

Date

State Map

Terre du Lac

Distance to Nearby Places 63 Miles from St. Louis 19 Miles to Farmington 21 Miles from DeSoto

Tract Map

Contacts

Property Related Contacts Contacts Contacts

United Country Coffey Realty & Auction Jimmie Dean Coffey, CAI, AARE, CES 812.824.6000 jcoffey@jdcgroup.com

United Country Trophy Properties & Auction Ken Dayley Land Specialist 855.573.5263 x704 kdayley@trophypa.com

www.MOLandAuction.com

Bonne Terre, Missouri Street Department Water Department (573) 358-3513 (573) 358-4327 Animal Control Library (573) 358-3513 (573) 358-2260 Municipal Court Senior/Nutrition Center (573) 358-2254 (573) 358-3726 Fire Department Bonne Terre Pool (573) 358-2200 (573) 358-0157 Building/Code Enforcement Utilities (573) 358-2254 (573) 358-2254 Administration Police Department (573) 358-2254 (573) 358-2254 Bonne Terre Chamber of Commerce (573) 358-4000 Economic Development http://bonneterrechamber.com/economic-development/ DNR Fish & Wildlife http://www.dnr.mo.gov/ Websites of interest http://bonneterre.net/ http://bonneterre.net/forms-permits-and-applications/

City/County Information Bonne Terre, Missouri At one time the richest lead ore in the world was located in Bonne Terre and surrounding area. The French discovered lead in Bonne Terre in 1720 and they called the settlement “La Terre Bonne”, “Good Earth”, in reference to the mineral wealth. The actual town was formed in April 1864, when St. Joseph Lead Co. purchased 946 acres of land. The City of Bonne Terre was incorporated as a third class city in 1917. Population in 2012: 7,052 (96% urban, 4% rural). Population change since 2000: +74.6% Males: 5,290 (75.0%) Females: 1,762 (25.0%) Median resident age: Missouri median age:

34.2 years 33.9 years

Zip codes: 63628 Estimated median household income in 2012: $31,166 (it was $29,929 in 2000) Bonne Terre: $31,166 MO: $45,321 Estimated per capita income in 2012: $11,193 Bonne Terre city income, earnings, and wages data Estimated median house or condo value in 2012: $81,091 (it was $55,200 in 2000) Bonne Terre: $81,091 MO: $135,000 Mean prices in 2011: All housing units: $94,313; Detached houses: $94,313 Median gross rent in 2012: $490. Read more: http://www.city-data.com/city/Bonne-Terre-Missouri.html#ixzz3A7hNFdnW

Property Maps

Property Maps - Tracts 2a & 2b

Property Maps - Tract 3

Property Maps - Tract 4

Property Maps - Tract 5

Property Maps - Tract 6

Property Maps - Tract 7

Property Maps - Tract 8

Property Maps - Tract 9

Property Maps - Tract 10

Tax Information

Disclosures

Lead Based Paint Disclosure

Purchase Agreement

REAL ESTATE PURCHASE AGREEMENT THIS REAL ESTATE PURCHASE AGREEMENT (“Agreement”) is made and entered into as of the _______ day of _____________, 2014 (“Execution Date”), by and between Terre Du Lac, Inc. and James O. Kwon (collectively “Seller”) and ______________________ _____________________________________ (“Purchaser). WITNESSETH THAT: In consideration of the mutual covenants and agreements contained herein, and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, Seller and Purchaser hereby agree as follows: 1. Purchase and Sale. Seller agrees to sell and convey to Purchaser, and Purchaser agrees to purchase from Seller, upon the terms and conditions hereinafter set forth, the following described property: EXHIBIT A, attached Together with all improvements, together with the appurtenances and hereditaments thereunto belonging, including all easements, intangibles associated with the improvements (collectively “Real Estate”). 2. Purchase Price and Payment. The purchase price for the Real Estate is the bid price plus an eleven percent (11%) Buyer’s premium for a total purchase price of $___________________(the “Purchase Price”), which is subject to adjustment as hereinafter provided and shall be payable as follows: Purchaser shall pay a non-refundable 10% Ten Percent deposit payment by wire transfer to the Title Company within twenty-four (24) hours of the auction close. The balance of the purchase price shall be paid by wire transfer to the Title Company at Closing. 3. Seller Financing Option. Purchaser may elect to pay the balance of the Purchase Price in accordance with the terms of the Seller Financing Option, Exhibit B attached, by execution of the Seller Financing Option contemporaneously with the execution of this Agreement. 4. Closing. Closing on the purchase of the Real Estate shall be on or before November 14, 2014 at 10:00 a.m. CST at Preferred Land and Title Company (the “Title Company”), 12 West First Street, Farmington, MO 63640. The date and event of the consummation of the purchase and sale of the Real Estate as contemplated by this Agreement is referred to, respectively, as the "Closing Date" and the "Closing".

Purchase Agreement

5. Conditions Precedent to Closing. Purchaser's obligations shall be subject to the condition that as of the Closing Date there is no breach of any term hereunder and to the satisfaction of the following additional conditions precedent: a. Title Insurance. Title to the Property shall be good and merchantable and shall be conveyed to Purchaser free and clear of any and all liens, encumbrances, claims and interests of any kind or nature whatsoever except as stated as Exceptions in Schedule B, Title Insurance Commitment, attached as Exhibit C. (Collectively, "Permitted Exceptions"). b. Warranties. Seller makes no warranties regarding the condition of the Property. Purchaser accepts the Property AS IS. c. Real Estate. 6.

Survey. Seller has provided to Purchaser a copy of a survey of the

Fees and Expenses.

a. Taxes. All real estate and personal property taxes assessed against the Real Estate for years prior to the year of the Closing and all penalties and interest thereon shall be paid by Seller. All real estate and personal property taxes assessed against the Real Estate for the year of the Closing and due and payable in the year following Closing shall be prorated to the date of Closing. If the amount of such real estate and personal property taxes is not known at the Closing, closing adjustments will be made on the basis of the most recent tax rate and assessed valuation for the Real Estate which adjustments shall be final. Purchaser shall have the right, in the name of Seller or Purchaser, to contest or appeal any such tax or assessment. Any taxes or assessments in respect of the Real Estate not assumed by Purchaser, but which are not due and payable at or prior to the Closing, shall be allowed to Purchaser as a credit against the Purchase Price at the Closing, and Seller shall have no further liability for such taxes or assessments. b. Fees and Expenses. Seller shall pay the cost for the ownerâ&#x20AC;&#x2122;s title insurance policy, preparation of the Warranty Deed, Vendorâ&#x20AC;&#x2122;s Affidavit, Sales Disclosure form and one half of the Closing Fee. Purchaser will pay costs associated with the recording of the deed and one half of the closing fee. 7. Risk of Loss; Condemnation. All risk of loss or damage to the Property occurring subsequent to the date hereof shall be borne by Seller to and including the Closing Date. If any of the Property shall suffer a material loss by fire, flood, tornado, accident or other cause after the date hereof and on or before the Closing Date, or if proceedings to take or condemn the whole or any part of the Property for public or quasi-public use under any statute or by the right of eminent domain are commenced or threatened prior to the Closing Date, then Purchaser may, at its sole option, either consummate or not consummate the transaction contemplated hereby. If Purchaser elects to consummate such transaction, then all insurance proceeds payable in respect of such casualty and/or any and all damages or awards payable in

Purchase Agreement

respect of such taking or condemnation shall be paid to Purchaser. If Purchaser elects not to consummate such transaction, this Contract shall terminate and be of no further force and effect, and the Earnest Money shall be promptly returned to Purchaser. 8. Possession of the Property. Seller shall deliver possession of the Property to Purchaser at Closing, free and clear of the rights of any other party. 9. Seller's Obligations at Closing. At the Closing, Seller agrees to deliver to Purchaser in accordance with the terms of this Contract the following: a. A Commitment for an owner's policy of title insurance in the amount of the Purchase Price and in the name of Purchaser as the proposed insured. b. Seller shall cause an ownerâ&#x20AC;&#x2122;s title insurance policy to be issued in the name of the Purchaser within sixty (60) days following Closing. c. A duly authorized and executed General Warranty Deed in recordable form, subject only to Permitted Exceptions; and d. 10. to Seller:

Executed Sales Disclosure Form.

Purchaser's Obligations at Closing. At the Closing, Purchaser agrees to deliver a.

The Purchase Price.

Executed Sales Disclosure Form.

11. Default. In the event Purchaser fails to close on the purchase of the property without legal excuse or cause, or fails to pay any sums due and owing in accordance with the terms of the Seller Financing Option, Seller shall have all rights and remedies available at law or in equity to include specific performance, acceleration of the unpaid Purchase Price, attorney fees and litigation expenses. 12. Binding on Successors. This Contract shall be binding upon and shall inure to the benefit of the parties hereto and their respective heirs, representative, successors and permitted assigns. 13. Modification. This Contract may not be changed or modified except by an agreement in writing signed by the party sought to be charged with such modification. 14. Waiver. No failure on the part of either party to exercise any power or right given hereunder or to insist upon strict compliance with any obligations specified herein, and no custom or practice at variance with the terms hereof, shall constitute a waiver of either party's right to demand exact compliance with the terms hereof; provided, however, that either party

Purchase Agreement

may, at its sole option, waive in writing any requirement, covenant or condition herein established for the benefit of such party without affecting any of the other terms or provisions of this Contract. No delay on the part of either party in the exercise of any power or right hereunder shall operate as a waiver thereof nor shall any single or partial exercise of any power or right preclude other or further exercise thereof or the exercise of any power or right. All rights and remedies existing under this Contract shall be cumulative and shall be in addition to those otherwise provided by law. 15. Entire Agreement. This Contract constitutes the entire agreement among the parties hereto and supersedes all prior discussions, letters of intent, agreements, writings and representations between Seller and Purchaser with respect to the Property and the transaction contemplated herein. IN WITNESS WHEREOF, Purchaser and Seller have executed this Contract as of the date first hereinabove written. "SELLER"

â&#x20AC;&#x153;PURCHASERâ&#x20AC;?

_________________________________ Terre Du Lac, Inc.

_________________________________

_________________________________ James Kwon _________________________________

Printed: __________________________

Purchase Agreement

EXHIBIT A LEGAL DESCRIPTIONS Map Color

Current Map Label

Tract Auction Lot

Acreage/Description

Package A â&#x20AC;&#x201C; 1,220 Bldg Lots & Office Bldg

Terre Du Lac, Inc. Properties Blue

Blue

James O. Kwon Trust Properties Green Red Olive Peach Rasberry Pink Orange Plum Yellow Purple

AREA 1 (East Comm) AREA 2 (West Comm) AREA 3 (Chalet area) AREA 4 (Laffitte East) AREA 5 (Laffitte West) AREA 6 (Plat 31 Site) AREA 7 (Marsellies) AREA 8(Shayne) AREA 9 (Old Airport) AREA 10

2a 2b 3 4 5 6 7 8 9 10 Total=

23.6 acres 25.4 acres 27.1 acres 101.8 acres 94.8 acres 172.6 acres 98 acres 22 acres 20.5 acres 741.2 acres 1,327 acres

Purchase Agreement

EXHIBIT B SELLER’S FINANCING OPTION Seller’s Financing Option extended to Purchaser is only applicable to properties owned and offered by Terre Du Lac Inc., not James O. Kwon Trust properties, in this auction and upon execution is made a part of the foregoing Real Estate Purchase Agreement. The maximum amount of financing offered is limited to the 50 % of the purchase price. Paragraph 2, Purchase Price and Payment, is amended as follows: the total Purchase Price for the Real Estate is _____________________________________________ Dollars ($______________) (the “Purchase Price”), which is subject to adjustment as hereinafter provided and shall be payable as follows: (A) Purchaser will pay by wire transfer to the Title Company the 10% as non-refundable Down payment; (B) Purchaser shall pay the balance of the bid price at Closing; (C) Purchaser shall pay the eleven percent (11%) Buyer’s premium at Closing; (D) The unpaid balance of the Note and Deed of Trust shall be paid in a balloon payment on or before the 14th day of November, 2019. The unpaid Purchase Price shall accrue interest at five percent (5%) per annum, which interest shall be paid monthly to Seller beginning the 14th day of November, 2014 to: SELLER:

Terre Du Lac, Inc. c/o James. O. Kwon 672 W. Capri Dr. Bonne Terre, MO 63628

The Buyer may prepay the Purchase Price without penalty. The Warranty Deed to be delivered by Seller to Purchaser in accordance with Paragraph 9(c) of the Real Estate Purchase Agreement shall be delivered by Seller to Purchaser upon payment of the Purchase Price in full, together with all accrued interest. The Warranty Deed shall be delivered by Seller to Purchaser at: PURCHASER:

___________________________________ ___________________________________ ___________________________________

or such other address as Purchaser provides to Seller in writing. Purchaser shall maintain general liability insurance in the face amount of not less than One Million Dollars (1,000,000.00) and shall name Seller as additional insured. Purchase shall provide to Seller current proof of insurance until such time as the Purchase Price is paid in full.

Purchase Agreement

Purchaser shall not alter the Real Estate or submit the Real Estate for rezoning, development plan approval, PUD plan amendment, or make any alterations to Real Estate without Seller’s prior written consent, which consent shall not be unreasonably withheld or conditioned. All other terms and provisions of the Real Estate Purchase Agreement shall be in full force and effect except as amended by this Seller’s Financing Option. Memorandum of Contract. At Purchaser’s election, the parties shall execute a Memorandum of Conditional Sales Contract for Real Estate in recordable form. The Memorandum may be recorded, at Purchaser’s expense, in the Office of the Recorder of St. Francois County. PURCHASER: ___________________________________

Date: _______________________

ACCEPTED: ___________________________________ Terre Du Lac, Inc.

Date: ________________________

___________________________________ James Kwon

Date: ________________________

___________________________________

Date: ________________________

Auction Advantages Buyer Benefits

• Purchase property at fair market value • Eliminate sometimes long negotiation periods • Reduce time to purchase property • Gain confidence as they compete • Do not have to worry about contingencies because purchasing and closing dates are known

• Feel better about a purchase ± just knowing there is a contending bid just one increment under purchase price

• Buyers know property owners are motivated to sell • Buyers know property owners sell at lowest price possible • Buyers can receive favorable financing • Buyers set their own purchase price

in conjuction with

Ken Dayley St. Louis, MO 63011

Jimmie Dean Coffey License: #AC30200042 / AU01049934