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HomeMy WebLinkAbout98- Board of Investments Intercap Program - ... ~ . .. . . CITY OF BOZEMAN Bozeman, Montana March 20, 1998 Board of Investments of the State of Montana 555 Fuller A venue P. O. Box 200126 Helena, Montana 59620-0126 First Trust Company of Montana 303 North Broadway P.O. Box 30678 Billings, Montana 59115 Ladies and Gentlemen: I have served as counsel to City of Bozeman (the "Borrower") in connection with participation in the INTERCAP Program (the "Program") of the Board ofInvestments of the State of Montana (the "Board"). Terms used herein which are defined in the Loan Agreement, dated as of March 20, 1998, (the "Loan Agreement") between the Borrower and the Board shall have the meanings specified therein. The resolution of the Borrower authorizing its participation in the Program and the issuance of its Loan Agreement reiating thereto is herein referred to as the Loan Agreement Resolution. I have examined, among other things: i) the Borrower Act; ii) M.C.A. 97-3-4313; iii) the Loan Agreement dated as of March 20, 1998 and executed by the Borrower; iv) the Promissory Note (the 'Note") dated as of March 20, 1998 and executed by the Borrower; v) Commission Resolution No. 3232 of the Borrower, dated March 16, 1998 (the "Loan Agreement Resolution"); vi) the proceedings of the Borrower with respect to the due execution and delivery by the Borrower ofthe Loan Agreement and Note (the Progrmn Documents), and such certificates and other documents relating to the Borrower, the Program Documents and the Loan Agreement Resolution of the Borrower, m1d have made such other examination of applicable Montana law and a review of the Borrower's actions with respect to applicable ordinances and resolutions as we have deemed necessary in giving this opinion. Street address: 411 East Main Street Phone: (406) 582-2300 Mailing address: P.O. Box 640 Fax: (406) 582-2323 Bozeman, Montana 59771-0640 TOO: (406) 582-2301 .. L ~ \ , .. Based upon the foregoing: (a) The Borrower is a political subdivision duly organized and validly existing under the laws and Constitution of the State of Montana with full legal right, power and authority to enter into, execute and perform its obligations under the Program Documents and to carry out and effectuate the transactions contemplated thereunder. (b) The execution of the Loan Agreement and Promissory Note have been duly authorized and are valid, binding and enforceable against the Borrower in accordance with its terms. (c) The Loan Agreement Resolution of the Borrower has been duly adopted and is valid, binding and enforceable against the Borrower in accordance with in terms. (d) The Borrower has taken all action required to be taken by it to authorize the execution and delivery of and the performance of the obligations contained III the Program Documents; and such authorization is in full force and effect on the date hereof. (e) The Borrower has complied with all applicable competitive bidding requirement for the purchase and acquisition of the Project. (f) All environmental permits necessary for the continued operation of the Project have been obtained. (g) No consent, approval, authorization, order, filing, registration, qualification, election or referendum, of or by any person, organization, court or governmental agency or public body whatsoever is required to be obtained by the Borrower in connection with the execution, delivery and performance of the Program Documents or the consummation of the other transactions effected or contemplated thereby. (h) The execution, delivery and performance of the Program Documents, and compliance with the provisions thereof, will not conflict with or constitute a breach of, a violation of, or default under, fIle Constitution of the State of Montana, or any existing law, charter, judgment, ordinance, administrative regulation, decree, order or resolution of or relating to the Borrower and do not conflict with or result in a violation or breach of, or constitute a default under, any agreement, indenture, mortgage, lease or other instrument, to which the Borrower is a party or by which it is bound or to which it is subject. .. L . . , ; (i) The Program Documents executed by the Borrower, when delivered to the Board, will have been duly authorized and executed and will constitute validly issued and legally binding obligations of the Borrower according to their terms. It is understood that the enforceability of the Program Documents may be limited by applicable bankruptcy, insolvency, moratorium, reorganization or other similar laws affecting the enforcement or creditors rights. Very truly yours, PJL/ev cc: Clark Johnson, City Manager Miral Gamradt, Administrative Services Director File , 1- CERTIFICATE AS TO USE OF FACILITY The undersigned, being the duly qualified and acting Mayor, City Manager and Director of Finance of the City of Bozeman, Gallatin County, Montana (the "City") hereby certify on behalf of the City as follows: 1. The City is using the proceeds of the loan made by the Board of Investments of the State of Montana (the "Board") under that certain Loan Agreement, dated as of March 20, 1998 (the "Loan Agreement"), between the Board and the City, for the purpose of providing funds to be used, with other available funds of the City, to acquire a professional office building (the "Facility") located in the City. 2. The City understands and acknowledges that the Board requires that the Loan not be a "private activity bond" within the meaning of Section 141 of the Internal Revenue Code of 1986, as amendedL and the City has made a covenant to such effect in the Loan Agreement]. 3. The purchase price of the Facility is $1,097,400, to which the City will apply $422,400 of its own funds and $675,000 of proceeds of the Loan. 4. The City is acquiring the Facility for its general municipal use. Certain portions of the Facility, however, are currently subject to leases to private persons or entities, and not all of the Facility will be used immediately by the City. The identity of and the size of the leaseholds held by such private parties (the "Tenants") are listed on Exhibit A hereto (which is hereby incorporated herein and made a pan hereof). The net rental area of the entire Facility is 7,643 square feet. 5. The City hereby allocates, based on the net rental value of the respective areas and common areas in the Facility, not more than 33 % of the cost of the Facility to the leaseholds and appurtenant common areas held by the Tenants. The City hereby allocates the equity it is contributing to the cost of the Facility to the portions of the Facility represented by the leaseholds held by the Tenants and [if there is excess] to the balance of the Facility. The City hereby allocates the proceeds of the Loan to the balance of the Facility, i.e., portions of the Facility to be occupied and used by the City immediately for its general municipal purposes, and not those portions of the Facility subject to leases with Tenants. The leaseholds to the Tenants and the portions of the Facility allocated to the Loan are discrete areas of the Facility. , t 6. While the City reasonably expects all space in the Facility will eventually be used by it for general municipal purposes and that no private parties then will be Tenants or otherwise occupy and use any portion of the Facility, the City may lease the leaseholds currently subject to leases with the Tenants to private parties, either by renewing existing leases or entering into new leases with others if and to the extent such expectations of the City are not realized. Dated: March ~(; , 1998. CITY OF BOZEMAN, MONTANA 8Y_~61. _7/1.## Mayor An8 --1;- 1 . City Manager And /11..u:; If. ~ ~U-. Director of Finance - --- ------------ . I . Exhibit A Identification of Tenants and Locations of Leaseholds in the Facility Tenant Location of Leasehold Area of Leasehold HKM Engineers 3-A 514.3700 Walking Cross 3-B 1,683.6500 Doctor Kenck 3-C 965.7300 HKM Engineers 3-D 697.6500 Institutions 3-E 1,369.7156 R.D. (Dooley Johnson) 3-F 346.3400 Sclauch/Bottcher 1-A 196.5800 Federated Finance 1-B 1,190.7600 Hunter Neil Co. 1-C 330.0900 Forest Service 1-F 189.4300 HKM Storage 1-H 99.1800 Mark Behr 1-J 59.6400 TOTAL 7,643.1356 . ( .' . . , (GENERAL FUND LOAN) RESOLUTION AUTHORIZING PARTICIPATION IN THE INTERCAP PROGRAM CERTIFICATE OF MINUTES RELATING TOr::>~r'~ RESOLUTION NO. 3232 ' , ( \~ Issuer: City of Bozeman Kind, Date, time and place of meeting: A regular meeting held on t1arch 16 ~ at .l..- o'clock -E..m. in Bozeman , Montana. Members present: Mayor Stiff. Commissioner Smiley. Commissioner Rudberg. Commissioner Frost and Commissioner Youngman Members absent: None RESOLUTION NO. 3232 RESOLUTION AUTHORIZING PARTICIPA TION IN THE BOARD OF INVESTMENTS OF THE STATE OF MONTANA ANNUAL ADJUSTABLE RATE TENDER OPTION MUNICIPAL FINANCE CONSOLIDA TION ACT BONDS (INTERCAP REVOLVING PROGRAM), APPROVING THE FORM AND TERMS OF THE LOAN AGREEMENT AND AUTHORIZING THE EXECUTION AND DELIVERY OF DOCUMENTS RELATED THERETO I, the undersigned, being the fully qualified and acting recording officer of the public body issuing the obligations referred to in the title of this certificate, certify that the documents attached hereto, as described above, have been carefully compared with the original records of the public body in my legal custody, from which they have been transcribed; that the documents are a correct and complete transcript of the minutes of a meeting of the governing body at the meeting, insofar as they relate to the obligations; and that the meeting was duly held by the governing body at the time and place and was attended throughout by the members indicated above, pursuant to call and notice of such meeting given as required by law. WITNESS my hand officially as such recording officer this 17th day of March 1998 By{l~J~~ ' -' Its rlprk nf the CQmmi~~ign RESOLUTION-l .,'..' . ~ , . . 1 RESOLUTION NO. 3232 RESOLUTION AUTHORIZING PARTICIPATION IN THE BOARD OF INVESTMENTS OF THE STATE OF MONTANA ANNUAL ADJUSTABLE RATE TENDER OPTION MUNICIP AL FINANCE CONSOLIDA TION ACT BONDS (INTERCAP REVOLVING PROGRAM), APPROVING THE fORM AND TERMS OF THE LOAN AGREEMENT AND AUTHORIZING THE EXECUTION AND DELIVERY OF DOCUMENTS RELATED THERETO BE IT RESOLVED BY THE City Commission (the Governing Body) OF CITY OF BOZEMAN (the Borrower) AS FOLLOWS: ARTICLE I DETERMINA TIONS AND DEFINITIONS Section 1.01. Definitions. The following terms will have the meanings indicated below for all purposes of this Resolution unless the context clearly requires otherwise. Capitalized terms used in this Resolution and not defined herein shall have the meanings set forth in the Loan Agreement. Adiusted Interest Rate means the rate of interest on the Bonds determined in accordance with the provisions of Section 3.03 of the Indenture. Authorized Representative shall mean the officers of the Borrower designated and duly empowered by the Governing Body and set forth in the application. fuuu:d shall mean the Board of Investments of the State of Montana, a public body corporate organized and existing under the laws of the State and its successors and assigns. Board Act shall mean Section 2-15-1808, Title 17, Chapter 5, Part 16, MCA, as amended. B..Q.wls. shall mean the Bonds issued by the Board pursuant to the Indenture to finance the Program. Borrower shall mean the Borrower above named. Indenture shall mean that certain Indenture of Trust dated March 1, 1991 by and between the Board and the Trustee pursuant to which the Bonds are to be issued and all supplemental indentures thereto. l&an means the loan of money by the Board to the Borrower under the terms of the Loan Agreement pursuant to the Act and the Borrower Act and evidenced by the Note. Loan Agreement means the Loan Agreement between the Borrower and the Board, including any amendment thereof or supplement thereto entered into in accordance with the provisions thereof and hereof. Loan Agreement Resolution means this Resolution or such other form of resolution that the Board may approve and all amendments and supplements thereto. Loan Date means the date of closing a Loan. RESOLUTION-2 -- , ,. " . , It Loan Rate means the rate of interest on the Loan which is initially 4.85 % per annum through February 15, 1999 and thereafter a rate equal to the Adjusted Interest Rate on the Bonds and up 1.5% per annum as necessary to pay Program Expenses. ~ means the promissory note to be executed by the Borrower pursuant to the Loan Agreement, in accordance with the provisions hereof and thereof, in. substantially the form set forth in the Promissory Note, or in such form that may be approved by the Board. Program shall mean the INTERCAP Program of the Board pursuant to which the Board will issue and sell Bonds and use the proceeds to make loans to participating Eligible Government Units. Proiect shall mean those items of equipment, personal or real property improvements to be acquired, installed, financed or refinanced under the Program as set forth in the Description of the Project/Summary of Draws. Trustee shall mean First Trust Company of Montana National Association and its successors. Section 1.02. Authority. The Borrower is authorized to undertake the Project and is further authorized by the Borrower Act to enter into the Loan Agreement for the purpose of obtaining a loan to finance or refinance the acquisition and installation costs of the Project. Section 1.03. Execution of Agreement and Delivery of Note. Pursuant to the Indenture and the Board Act, the Board has issued and sold the Bonds and deposited a part of proceeds thereof in the Loan Fund held by the Trustee. The Board has, pursuant to the Term Sheet, agreed to make a Loan to the Borrower in the principal amount of $681,750.00 and upon the further terms and conditions set forth herein, and as set forth in the Term Sheet and the Loan Agreement. ARTICLE II THE LOAN AGREEMENT Section 2.01. Terms. (a) The Loan Agreement shall be dated as of the Loan Date, in the principal amount of $681,750.00 and shall constitute a valid and legally binding obligation of the Borrower. The obligation to repay the Loan shall be evidenced by a Promissory Note. The Loan shall bear interest at the initial rate 4.85% per annum through February 15, 1999 and thereafter at the Adjusted Interest Rate, plus up to 1.5% per annum as necessary to pay the cost of administering the Program (the Program Expenses). All payments may be made by check or wire transfer to the Trustee at its principal corporate trust office. (b) The Loan Repayment Dates shall be February 15 and August 15 of each year. (c) The principal amount of the Loan may be prepaid in whole or in part provided that the Borrower has given written notice of its intention to prepay the Loan in whole or in part to the Board no later than 30 days prior to the designated prepayment date. (d) The Prepayment Amount shall be equal to the principal amount of the Loan outstanding, plus accrued interest thereon to the date of prepayment. (e) Within fifteen days following an Adjustment Date, the Trustee shall calculate the respective amounts of principal and interest payable by each Borrower on and with respect to its Loan Agreement and Note for the subsequent August 15 and February 15 payments, and prepare and mail by first class mail a statement therefor to the Borrower. RESOLUTION-3 . L L . I . l Section 2.02. Use and Disbursement of the Proceeds. The proceeds of the Loan will be expended solely for the purposes set forth in the Description of the Project/Summary of Draws. The proceeds from the sale of the Note to the Board shall remain in the Borrower's Account pending disbursement at the request of the Borrower to pay the budgeted expenditures in anticipation of which the Note was issued. Requests for disbursement of the Loan shall be made to the Board. Prior to the closing of the Loan and the first disbursement, the Borrpwer shall have delivered to the Trustee a certified copy of this Resolution, the executed Loan Agreement and Note in a form satisfactory to the Borrower's Counsel and the Board's Bond Counsel and such other certificates, documents and opinions as set forth in the Loan Agreement or as the Board or Trustee may require. Section 2.03. Payment and Security for the Note. In consideration of the making of the Loan to the Borrower by the Board, the provisions of this Resolution shall be a part of the Agreement of the Borrower with the Board. The provisions, covenants and Agreements herein set forth to be performed by or on behalf of the Borrower shall be for the benefit of the Board. The Loan Agreement and Note shall constitute a valid and legally binding obligation of the Borrower and the principal of and interest on the Loan shall be payable from the general fund of the Borrower, and any other money and funds of the Borrower otherwise legally available therefor. The Borrower shall enforce its rights to receive and collect all such taxes and revenues to insure the prompt payment of the Borrower obligations hereunder. Section 2.04. Representations as to Impact of 1-105. as Amended by Subsequent Le~islative Acts. The Borrower recognizes and acknowledges that the amount of taxes it may levy on certain classes of property may not exceed the amount of taxes levied for taxable year 1986, subject to certain limitations set forth in 1-105, as amended by subsequent legislative acts (the Property Tax Limitation Act). The Borrower is familiar with the Property Tax Limitation Act and acknowledges that the obligation to repay the Loan under the Agreement and Note are not exceptions to the provisions of the Property Tax Limitation Act. The Borrower represents and covenants that the payment of principal of and interest on the Loan can and will be made from revenues available to the Borrower in the years as they become due, notwithstanding the provisions of the Property Tax Limitation Act. Section 2.05. Levy and Appropriate Funds to Repay Loan. The Borrower agrees that in order to meet its obligation to repay the Loan and all other payments hereunder that it will budget, levy taxes for and appropriate in each fiscal year during the term of the Loan an amount sufficient to pay the principal of and interest hereon subject to the limitations of the Property Tax Limitation Act. ARTICLE III CERTIFICA TIONS, EXECUTION AND DELIVERY Section 3.01. Authentication of Transcript. The Authorized Representatives are authorized and directed to prepare and furnish to the Board and to attorneys approving the validity of the Bonds, certified copies of this Resolution and all other resolutions and actions of the Borrower and of said officers relating to the Loan Agreement, the Note, and certificates as to all other proceedings and records of the Borrower which are reasonably required to evidence the validity and marketability of the Note. All such certified copies and certificates shall be deemed the representations and recitals of the Borrower as to the correctness of the statements contained therein. Section 3.02. Le~al Opinion. The attorney to the Borrower is hereby authorized and directed to deliver to the Board at the time of Closing of the Loan his or her opinion regarding the Loan, the Loan Agreement, the Note and this Resolution in substantially the form of the opinion set forth in the Attorney's Opinion. RESOLUTION-4 . . ~ . . <t 1 Section 3.03. Execution. The Loan Agreement, Note, and any other document required to close the Loan shall be executed in the name of the Borrower and shall be executed on behalf of the Borrower by the signatures of the Authorized Representatives of the Borrower. PASSED AND APPROVED by the City Commission this ~ day of _ March , 19~. B~t~/~.-4f ::te~ J ~ Its Clerk of the Commission RESQLUTION-S ,. ..~. I , , . , Borrower #0484 Clw "7 LOAN AGREEMENT , )' between U ~ BOARD OF INVESTMENTS OF THE STATE OF MONTANA and CITY OF BOZEMAN as Borrower DA TE OF AGREEMENT: March 20, 1998 REQUESTED LOAN AMOUNT. . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . $675,000.00 ORIGINATION FEE (1 %) . . . . . . . . . . . . . . 01 . . . . . . . . . . . . . . . . . . . . 6.750.00 APPROVED LOAN AMOUNT . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$681.750.00 ADDRESS OF BORROWER: City of Bozeman P.O. Box 640 Bozeman, MT 59715 CONT ACT PERSON OF BORROWER: NAME Miral Gamradt TITLE Administrative Services Director TELEPHONE (406) 582-2325 STATUTORY AUTHORITY FOR BORROWING: 7-7-4101 M.C.A. , , ARTICLE I. DEFINITIONS AND RULES OF INTERPRETATION. . . . . . . . . . . . . . . . . . . . .. 2 Section 1.01. Definitions. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 2 Section 1.02. Rules of Interpretation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 5 Section 1.03. Attachments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 5 " ARTICLE II. REPRESENTATIONS. COVENANTS AND WARRANTIES OF BORROWER. . . . . . . 6 Section 2.01. Representations and Warranties. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 6 Section 2.02. Particular Covenants of Borrower. . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 7 ARTICLE III. LOAN TO BORROWER. .................... . . . . . . . . . . . . . . . . . .. 7 ARTICLE IV. LOAN PROVISIONS. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 7 Section 4.01. Commencement of Loan A~reement. . . . . . . . . . . . . . . . . . . . . . . . . . . .. 7 Section 4.02. Termination of A~reement. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 7 Section 4.03. Term of Loan Agreement. ~ . . . . . . . . . . ;. . . . . . . . . . . . . . . . . . . . . . . 8 Section 4.04. Loan Closini Submissions. . . . . . . . . . . . . . . . . . . . . . . . - . . . . . . . . .. 8 Section 4.05. Initial and Subsequent Draws of Loan. ............... . . . . . . . . . . . . 8 ARTICLE V. LOAN REPAYMENTS AND NOTE. .........,...................... 8 Section 5.01. Payment of Loan Repayments. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 8 Section 5.02. Delinquent Loan Payments. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 9 Section 5.03. The Note. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 9 ARTICLE VI. TERM. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 9 ARTICLE VII. OBLIGA TIONS OF BORROWER UNCONDITIONAL. . . . . . . . . . . . . . . . . . . .. 9 Section 7.01. Obligations of Borrower. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9 ARTICLE VIII. FINANCIAL COVENANTS (GENERAL FUND). . . . . . . . . . . . . . . . . . . . . . 10 Section 8.01. Representations as to Impact of 1-105. as Amended by Subsequent Legislative Acts. 10 Section 8.02. Levy and Appropriate Funds to Repay Loan. . . . . . . . . . . . . . . . . . . . . . 10 Section 8.03. Reports and Opinion: Inspections. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10 ARTICLE IX. DISCLAIMER OF WARRANTIES. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10 ARTICLE X. OPTION TO PREPAY LOAN. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10 ARTICLE XI. ASSIGNMENT. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . - . . . . . . . . . . 11 Section 11.01. Assignment by Board or Trustee. . .. " . . . . . . . . . . . . . . . . . . . . . . . . . 11 Section 11.02. Assignment by Borrower. . . . .. . . . . . . . . . . . . . . . . . . .. . . . . . . . . . . 11 ARTICLE XII. EVENTS OF DEFAULT AND REMEDIES. . . . . . . . . . . . . . . . . . . . . . . . . . 11 Section 12.01. Events of Default Defined. . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . 11 Section 12.02. Notice of Default. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12 Section 12.03. Remedies on Default. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12 Section 12.04. Attorneys Fees and Other Expenses. . . . . . . .. .. . . . . . . . . . . . . . . . . . . 12 Section 12.05. Application of Moneys. . . . . . . . . . . . .. . . . . . . . . . . . . . . . . . . . . . . 12 Section 12.06. No Remedy Exclusive. Waiver and Notice. . . . . . . . . . . . . . . . . . . . . . . 12 ARTICLE XIII. MISCELLANEOUS. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13 Section 13.01. Notices. . . . . . . . ;. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13 Section 13.02. Binding Effect. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13 Section 13.03. Severability. . . . . . . . . . . . . . .. . . . . . . . . . . . . . . .. . . . . . . . . . . . . 13 Section 13.04. Amendments. Chan~es and Modifications. . . . . . . . . . . . . . . . . . . . . . . . 13 A , Section 13.05. Execution in Counterparts. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13 Section 13.06. Applicable Act. o . . . . . . . . . . . . .. . . . . . . . . . . . . . . . . . . . . . 13 Section 13.07. Consents and Approvals. . . . . . . . . . . I . . . . . . . . . . . . . . . . . . . 13 Section 13.08. Indemnity. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13 Section 13.09. Waiver of Personal Liability. . . . . . . . . . . . . . . . . . . 14 Section 13.10. Captions. . . . . . . . . . . . . . . . . . . . . . . . '( . . . . . . . . . . . . . . . . . . . 14 , , This Loan Agreement (the "Agreement") dated as of the date set forth on the cover hereof, and entered into between the Board of Investments of the State of Montana (the "Board"), a public body corporate and instrumentality of the state of Montana, and the Borrower whose name is set forth on the cover hereof ("the Borrower"), a political subdivision of the State of Montana; WIT N E SSE T H: ~ WHEREAS, pursuant to Section 2-15-1808, Montana Code Annotated and Title 17, Chapter 5, Part 16, Montana Code Annotated (the "Act") and in accordance with the Indenture of Trust, dated as of March 1, 1991, between the Board and First Trust Company of Montana National Association (the "Trustee"), has established its INTERCAP Revolving Program pursuant to which the Board will issue, from time to time, its Annual Adjustable Rate Tender Option Municipal Finance Consolidation Act Bonds (INTERCAP Revolving Program) (the j'Bonds"), for the purpose of making loans to Eligible Government Units to finance or refinance the acquisition and installation of equipment, personal and real property improvements, to provide temporary financing of projects or for other authorized corporate purposes of an Eligible Government Unit (the "Projects"); and WHEREAS, the Board has agreed to loan part of the proceeds of an issue of such Bonds to the Borrower in the amount set forth on the Description of the Project/Summary of Disbursements attached hereto and the cover hereof, and the Borrower has agreed to borrow such amount from the Board, subject to the terms and conditions of and for the purposes set forth in this Agreement; and WHEREAS, the Borrower is authorized under the laws of the State of Montana, and has taken all necessary action, to enter into this Agreement for the Project as identified in the Description of the Project/Summary of Disbursements attached hereto. NOW, THEREFORE, for and in consideration of the premises hereinafter contained, the parties hereby agree as follows: ARTICLE I. DEFINITIONS AND RULES OF INTERPRETATION. Section 1.01. Definitions. The following terms will have the meanings indicated below for all purposes of this Agreement unless the context clearly requires otherwise. Capitalized terms used in this Agreement and not defined herein shall have the meanings set forth in the Indenture. "A&1" means Section 2-15-1808, Montana Code Annotated and Title 17, Chapter 5, Part 16, Montana Code Annotated as now in effect and as it may from time to time hereafter be amended or supplemented. "Adiusted Interest Rate" shall mean the interest rate on the Loan determined and established pursuant to the Promissory Note hereto and the Loan Agreement or Bond Resolution. "Adiustment Date" means the Initial Adjustment Date or a Subsequent Adjustment Date. "Adjustment Period" means the period beginning on an Adjustment Date and ending on the day before the next succeeding Adjustment Date. "Amortization Schedule" means the schedule prepared for a loan advance to the Borrower showing the principal amount advanced, the amortization of the principal, and the interest and principal payments due to the Subsequent Interest Adjustment Date. "Authorized Representative" shall mean the officers of the Borrower designated by the Governing Body and set forth in the Application and signed on behalf of the Borrower by a duly authorized official. 2 : , , "fuuud" means the Board of Investments of the State of Montana, a public body corporate organized and existing under the laws of the State and its successors and assigns. "B2illls." means the Board of Investments of the State of Montana's Annual Adjustable Rate Tender Option Municipal Finance Consolidation Act Bonds (INTERCAP Revolving Program) authorized to be issued for the Program. ~ "Borrower" means the Eligible Government Unit which is set forth on the cover of this Agreement and which is borrowing and using the proceeds of the Loan to finance, refinance or be reimbursed for, all or a portion of the Cost of the Total Project. "Borrower Act" means the section of Montana Code Annotated indicated on the cQver hereto, that authorizes an Eligible Government" Unit to borrow money on terms consistent with the Program. " Borrower Resolution" means a resolution, duly and validly adopted by a Borrower authorizing the execution and delivery to the Board of an Agreement and Note, in substantially the form provided, or such other form of Resolution that the Board may approve and all amendments and supplements thereto. "Commencement Date" means the date of the Agreement as set forth on the cover hereof when the term of this Agreement begins and the obligation of the Borrower to make Loan Repayments begins to accrue. "Counsel" means an attorney or firm of attorneys duly admitted to practice law before the highest court of any state. "Default" means an event or condition the occurrence of which would, with the lapse of time or the giving of notice or both, become an Event of Default. "Eligible Government Unit" shall mean any municipal corporation or political subdivision of the state, including without limitation any city, town, county, school district, or other special taxing district or assessment or service district authorized by law to borrow money or any board, agency, or department of the state, or the board of regents of the Montana university system when authorized by law to borrow money. "Event of Default" means any occurrence or event described in Article X hereof. "Fiscal Year" means the fiscal year of the Borrower beginning on July 1 and ending June 30. "Governing Body" shall mean (i) with respect to a county, the Board of County Commissioners, (ii) with respect to a city, the City Council or Commission, and (iii) with respect to a school district, county water or sewer district, hospital district, rural fire district, or any other special purpose district, the Board of Trustees. "Indenture" means that certain Indenture of Trust, dated as of March 1, 1991, by and between the Board and the Trustee, as originally executed or as it may from time to time be supplemented, modified or amended in accordance with its terms. "Initial Adiustment Date" means the first February 16 following the date of the Agreement. "Initial Interest Rate" means the Loan Rate from the date of the Agreement to the Initial Adjustment Date. 3 . . "L2.lrn" means the loan of money by the Board to the Borrower under the terms of this Agreement pursuant to the Act and the Borrower Act, evidenced by the Note. "Loan Ae:reement" or "Agreement" means this Agreement, including, the attachments hereto, as originally executed or as they may from time to time be supplemented, modified or amended in accordance with the terms hereof and of the Indenture. ~ "Loan Date" means the date of closing a Loan. "Loan Rate" means the rate of interest on the Loan as provided for in Section 5.01 of this Agreement. "Loan Repayment Date" -means February 15th and August 15th or, if any such day is not a Business Day, the next Business Day thereafter, during the term of the Loan. "Loan Repayments" means the payments payable by the Borrower pursuant to Article V of this Agreement. "Loan Term" means the term provided for in Article V of this Agreement. "Maximum Interest Rate" means the maximum rate of interest on the loan which shall not exceed fifteen percent (15 %) per annum. "~" means the promissory note executed and delivered by the Borrower attached hereto and made a part hereof. "Orieination Fee" shall mean one percent (1 %) of the Requested Loan Amount, which will be added to the Loan on a pro-rata basis for each disbursement and will be used to help defray, in part, the Board's Program Expenses. "Program" means the Board's INTERCAP Program established under the Act and pursuant to which the Board finances Projects for Eligible _ Government Units. "Program Expenses" means the expenses of the Program, including (without limitation) the fees and expenses of the Trustee and such other fees and expenses of the Program or of the Board relating thereto as shall be approved by the Board. "Proiect" means those items of equipment, personal or real property improvements to be acquired, installed, financed or refinanced under the Program and set forth in the Description of the Project/Summary of Disbursements attached hereto. "Proiect Costs" shall mean the portion of the costs of the Total Project to be financed by the INTERCAP Loan, including the Origination Fee. The Project Costs may not exceed the Approved Loan Amount as set forth on the cover hereof. " Series Supplemental Indenture of Trust" means a Supplemental Indenture of Trust authorizing the issuance of an additional series of bonds in accordance with the provisions of the Indenture. "S1a1e." means the state of Montana. "Subsequent Interest Adjustment Date or Subsequent Adiustment Date" means February 16 in the years the Loan remains outstanding. 4 . , "Term Sheet" shall mean the document containing the terms and conditions issued by the Board to the Borrower that must be satisfied prior to entering into a Loan Agreement. "Term Sheet Issuance Date" means the date the Board executes its Term Sheet under the Board's Program. . "Total Proiect" shall mean the project as described in Section 14 of the Term Sheet and/or Section 2 of the application, of which some or all is to be financed by the INTERCAP Loan. "Total Proiect Costs" shall mean the entire cost of acquiring, completing or constructing the project as further described in Section 14 of the Terms & Conditions Sheet and/or Section 2 of the application. "Trustee" means the First Trust Company of Montana National Association, a corporation organized and existing under the laws of the United States, or its successor as trustee as provided in the Indenture. Section 1.02. Rules of Interpretation. For all ,purposes of this Agreement, except as otherwise expressly provided or unless the context otherwise requires: (a) "This Agreement" means this instrument as originally executed and as it may from time to time be modified or amended. (b) All references in this instrument to designated " Articles" , " Sections" and other subdivisions are to the designated Articles, Sections and other subdivisions of this instrument as originally executed. The words "herein", "hereof", "hereunder", and "herewith" and other words of similar import refer to this Agreement as a whole and not to any particular Article, Section or other subdivision. (c) The terms defined in this Article have the meanings assigned to them in this Article and include the plural as well as the singular. (d) All accounting terms not otherwise defined herein have the meanings assigned to them in accordance with generally accepted accounting principles. (e) The terms defined elsewhere in this Agreement shall have the meanings therein prescribed for them. (0 Words of the masculine gender shall be deemed and construed to include correlative words of the feminine and neuter gender. (g) The headings or captions used in this Agreement are for convenience of reference only and shall not define or limit or describe any of the provisions hereof or the scope or intent hereof. (h) This Agreement shall be construed in accordance with the laws of the State. Section 1.03. Attachments The following are attachments and a part of this Agreement: Description of the Project/Summary of Disbursements. Borrower's Draw Certificate. Promissory Note. Opinion of Borrower's Counsel. Certificate of Appropriation (if applicable). 5 , . ARTICLE II. REPRESENTATIONS. COVENANTS AND WARRANTIES OF BORROWER. Section 2.01. Representations and Warranties. Borrower represents and warrants for the benefit of the Board, the Trustee and the Bondholders as follows: (a) Organization and Authority. The Borrower: " (1) is a political subdivision of the State of Montana; and (2) has complied with all public bidding and other State and Federal laws applicable to this Agreement and the acquisition or installation of the Project. (b) Full Disclosure. There is no fact that the Borrower has not disclosed to the Board or its agents in writing that materially adversely affects or (so far as the Borrower can now foresee), except for pending or proposed legislation or regulations that are a matter of public information affecting the ability of the Borrower to levy property taxes, collect fees and charges for services provided by the Borrower or otherwise receive revenues, that will materially adversely affect the properties, activities, prospects or condition (financial or otherwise) of the Borrower or the ability of the Borrower to make all repayments and otherwise perform its obligations under this Agreement and the Note. (c) Pendin~ Litigation. There are no proceedings pending, or to the knowledge of the Borrower threatened against or affecting the Borrower in any court or before any governmental authority or arbitration board or tribunal that, if adversely determined, would materially adversely affect the properties, activities, prospects or condition (financial or otherwise) of the Borrower, or the ability of the Borrower to make all Loan Repayments and otherwise perform its obligations under this Agreement, the Note, and that have not been disclosed in writing to the Board. (d) Borrowin~ Legal and Authorized. The transaction provided for in this Agreement and the Note: (1) are within the powers of the Borrower and have been duly authorized by all necessary action on the part of the Borrower, including the adoption of a resolution substantially in the form provided hereto with such modification as may be provided by the Board; and (2) will not result in any breach of any of the terms, conditions or provisions of, or constitute a default under, or result in the creation or imposition of any lien, charge or encumbrance upon any property or assets of the Borrower pursuant to any indenture, loan agreement or other instrument (other than this Agreement and the Note) to which the Borrower is a party or by which the Borrower may be bound, nor will such action result in any violation of the provisions of any state laws, or ordinances or resolutions of the Borrower; and (3) the amount of the Loan represented hereby has been added to the amount of all other outstanding debt of the Borrower and together therewith does not result in the Borrower exceeding its statutory debt limitation. (e) No Violation. No event has occurred and no condition exists that, upon execution of this Agreement, the Note, or receipt of the Loan, would constitute a Default or an Event of Default. The Borrower is not in violation in any 'material respect, and has not received notice of any claimed violation, of any term of any agreement, statute, ordinance, resolution, bylaw or other instrument to which it is a party or by which it or its property may be bound. 6 . , , (f) Use of Proceeds. The Borrower will apply the proceeds of the Loan solely to finance the Project Costs described in the Description of the Project/Summary of Disbursements attached hereto. (g) Completion of the Total Project: Payment of Total Proiect Costs. The Borrower shall proceed diligently to complete the Total Project and to obtain tl\e necessary funds to pay the Total Project Costs thereof. The Borrower shall pay any amount required for the acquisition, construction and equipping of the Total Project in excess of the Approved Loan Amount as set forth on the cover hereof. Section 2.02. Particular Covenants of Borrower. (a) Compliance with Statutory Requirements. Competitive Bidding. Montana Labor Laws. Environmental Review. and Other Legal Requirements. The Borrower has complied with all statutory requirements, including competitive bidding and labor requirements and environmental review, applicable to the acquisition and construction of the Project. (b) Maintenance and Use of Proiect. The Borrower shall maintain the Project in good condition, make all necessary renewals, replacements, additions, betterments and improvements thereto and maintain insurance with respect to the Project, its other properties and its operations in such amounts and against such risks as are customary for governmental entities such as the Borrower. (c) Financial Reports and Audits. The Borrower shall comply with the provisions of Title 2, Chapter 7, Part 5 Montana Code Annotated and shall file with the Board financial reports and audits when such reports and audits are required to be filed by the Department of Commerce. (d) Liens. The Borrower shall not create, incur or suffer to exist any lien, charge or encumbrance on the property constituting the Project prior to the security interest granted hereunder other than (i) any security interest or lien pursuant to a loan agreement, mortgage, deed of trust, indenture or similar financing agreement of the Borrower in force and effect as of the date of this Agreement which creates a security interest or lien in after-acquired property of the Borrower and which is approved in writing by the Board, (ii), any security interest, mortgage or deed of trust permitted in writing by the Trustee, or (Hi) any security interest or lien imposed or arising by statute or operation of law. (e) Expenses. The Borrower will, at the request of the Board, pay all expenses relating to the Loan, the Note, and this Agreement. ARTICLE III. LOAN TO BORROWER. Subject to the terms and conditions of this Agreement, the Board hereby agrees to loan and advance to the Borrower, and the Borrower agrees to borrow and accept from the Board, the Loan in the principal amount not to exceed the Approved Loan Amount as set forth on the cover hereof. ARTICLE IV. LOAN PROVISIONS. Section 4.01. Commencement of Loan Agreement. This Agreement shall commence on the date hereof unless otherwise provided in this Agreement. Section 4.02. Termination of A~reement. This Agreement will terminate upon payment in full of all amounts due under this Agreement and upon the full and complete performance and payment of all of the Borrower's other obligations hereunder. Until such termination, all terms, conditions, and provisions of this Agreement shall remain in full force and effect 7 . . Section 4.03. Term of Loan A~reement. This Agreement shall be valid for the entire loan amount approved for one year from the Term Sheet Issuance Date. Beginning one year after the Term Sheet Issuance Date, the Board may refuse to make a loan advance if the Board determines that there has been a material adverse change in the circumstances of the Borrower. Section 4.04. Loan Closin~ Submissions. Concurrently with ,the execution and delivery of this Agreement, the Borrower is providing to the Board and the Trustee, the following documents (except that the Board may waive any of such documents): (a) A certified resolution of the Borrower in form and substance substantially identical to that provided hereto; provided, however, that the Board may permit variances in such certified resolution from the form or substance of such resolution if, in the good faith judgment of the Board, such variance is not to the material detriment of the interests of the Program, the Bondholders and such certified resolutions are acceptable to the Trustee; (b) An opinion of the Borrower's counsel in form and substance substantially identical to the Attorney's Opinion hereto; provided, however, that the Board may permit variances in such opinion from the form or substance of such Attorney's Op.inion if, in the good faith judgment of the Board, such variance is not to the material detriment of the interests of the Program, the Bondholders and such opinion is acceptable to the Trustee; (c) A bill, or bills of sale, construction contract or contracts, invoice or invoices, purchase order or purchase orders or other evidence satisfactory to the Board that the Project has been purchased, ordered, constructed or installed by the Borrower or that any construction has been substantially completed and that payment therefor is due and owing or, if the Borrower is to be reimbursed, that payment has been made; and for any debt being refinanced, the canceled note or other financing document or other evidence satisfactory to the Board of such refinancing; (d) Such other closing documents and certificates as the Board may reasonably request. Section 4.05. Initial and Subsequent Draws of Loan. For the initial draw of the Loan, the Borrower shall deliver to the Board an executed copy of the Agreement, complete with all attachments as listed in Section 4.04 including the Note and the Agreement Resolution and other documents the Board requires. An Origination Fee of one percent (1.0%) of the Requested Loan Amount will be added to the loan on a pro-rata basis for each disbursement. For subsequent draws, if applicable, the Borrower shall deliver to the Board, an executed copy of a Disbursement Request and any other documents the Board requires. ARTICLE V. LOAN REPAYMENTS AND NOTE. Section 5.01. Payment of Loan Repayments. (a) The Loan Repayment Dates shall be on February 15 and August 15 of each year with the first Loan Repayment Date determined as follows: First Loan Payment Date of Draw Repayment Date Consisting of: February 15 through April 14 August 15 Principal and Interest April 15 through June 14 August 15 Interest only 8 . . June 15 through August 14 February 15 Principal and interest from date of draw August 15 through October 14 February 15 Principal and Interest October 15 through December 14 February 15 Interest only ~ December 15 through February 14 August 15 Principal and Interest from date of draw (b) Borrower hereby agrees to make Loan Repayments to the Trustee on each Loan Repayment Date to be calculated by the Trustee and consisting of the sum of the following items: (i) Principal in an amount based upon the initial Amortization Schedule, the Amortization Schedule being initially determined utilizing the Initial Interest Rate. Each advance of the principal of the, Loan as shown on the Amortization Schedule shall be repaid in semiannual installments on each Loan Repayment Date commencing on the first Loan Repayment Date following the date thereof and ending on the final maturity date set forth on the Amortization Schedule. Principal payments will not be adjusted but the interest payment will be adjusted as provided in Section 5.01 hereof. (ii) Interest for each Adjustment Period at the Loan Rate. (c) The Loan Rate shall equal the interest rate on the Board's bonds, as determined pursuant to Section 3.03 of the Indenture, plus up to I1h % per annum as is necessary to pay the Borrower's share of Program Expenses as determined by the Board. The interest rate on the loan shall not exceed 15 % per annum. (d) Within thirty days of the Adjustment Date the Trustee shall calculate the new interest component of the Loan Repayments and shall send a revised Amortization Schedule to the Borrower showing the amount of the Borrower's semiannual Loan Repayments. (e) Loan Repayments may be made by check or wire transfer of funds to the Trustee. Section 5.02. Delinquent Loan Payments. From and after any Loan Repayment Date, until repaid, the Loan shall bear interest at a rate equal to two percent on the yield (coupon equivalent) as of the Loan Repayment Date, on United States of America Treasury Bills of a duration as close as possible to the term over which the Loan Repayment is delinquent. Section 5.03. The Note. On the date of this Agreement, the Borrower shall execute the attached Note. The obligations of the Borrower under the Note shall be deemed to be amounts payable under Section 5.01. Each payment made to the Trustee pursuant to the Note shall be deemed to be a credit against the corresponding obligation of the Borrower under Section 5.01 and any such payment made to the Trustee shall fulfill the Borrower's obligation to pay such amount hereunder and under the Note. ARTICLE VI. TERM. The term of the Loan will be a maximum of ten (10) years and the specific term for each loan draw will be set forth in the Borrower's Draw Certificate. ARTICLE VII. OBLIGA TlONS OF BORROWER UNCONDITIONAL. Section 7.01. Obligations of Borrower. The obligations of the Borrower to make the payments required hereunder shall be absolute and unconditional without any defense or right of set off, counterclaim 9 : . , . , or recoupment by reason of any default by the Board under the Loan Agreement or under any other indebtedness or liability at any time owing to the Borrower by the Board or for any other reason. ARTICLE VIII. FINANCIAL COVENANTS (GENERAL FUND). Section 8.01. Representations as to Impact of 1-105. as Amen<4d by Subsequent Leiislative Acts. The Borrower recognizes and acknowledges that the amount of taxes it may levy on certain classes of property may not exceed the amount of taxes levied for taxable year 1986, subject to certain limitations set forth in 1-105, as amended by subsequent legislative acts (the Property Tax Limitation Act). The Borrower is familiar with the Property Tax Limitation Act and acknowledges that the Loan Repayments to be made under the Agreement and Note are not exceptions to the provisions of the Property Tax Limitation Act. The Borrower represents and covenants that such Loan Repayments can and will be made from revenues available to the Borrower, notwithstanding the provisions of the Property Tax Limitation Act. Section 8.02. Levy and Appropriate Funds to Repay Loan. The Borrower agrees that in order to meet its obligation to make the Loan Repayments and all other payments hereunder that it will budget, levy taxes for and appropriate in each fiscal year during the term of this Agreement an amount sufficient to pay the principal of and interest hereon subject to the limitations of the Property Tax Limitation Act. Section 8.03. Reports and Opinion: Inspections. (a) The Borrower shall deliver to the Board by no later than August 15 of each year during the term of this Agreement, a certificate in substantially the form attached hereto that the Governing Body of the Borrower has budgeted and appropriated for the then current Fiscal Year an amount sufficient to make the Loan Repayments due in that Fiscal Year, as required in Article VIII hereof. (b) The Borrower agrees to permit the Board and the Trustee to examine, visit and inspect, at any reasonable time, the property constituting the Project, and the Borrower's facilities, and any accounts, books and records, including its receipts, disbursements, contracts, investments and any other matters relating thereto and to its financial standing, and to supply such reports and information as the Board or the Trustee may reasonably require. ARTICLE IX. DISCLAIMER OF WARRANTIES. THE BOARD AND ITS AGENTS MAKE NO WARRANTY OR REPRESENTATION, EITHER EXPRESSED OR IMPLIED, AS TO THE VALUE, DESIGN, CONDITION, MERCHANTABILITY OR FITNESS FOR ANY OR A PARTICULAR PURPOSE OR FITNESS FOR USE OF THE PROJECT OR ANY PORTION THEREOF OR ANY OTHER WARRANTY WITH RESPECT THERETO. In no event shall the Board or the Trustee or their respective agents be liable for any incidental, indirect, special or consequential damages in connection with or arising out of this Agreement or the Project or the existence, furnishing, functioning or Borrower's use of the Project or any item or products or services provided for in this Agreement. ARTICLE X. OPTION TO PREPAY LOAN. The Borrower may prepay the Loan in whole or in part upon giving 30 days prior written notice to the Board. If the Loan is prepaid in part, the principal amount of the Loan shall be reduced by the portion of the prepayment representing principal and the Loan shall be reamortized by ratably reducing the principal portion of each remaining Loan Repayment. 10 . . . . ARTICLE XI. ASSIGNMENT. Section 11. 0 1. Assif:nment by Board or Trustee. (a) The Borrower expressly acknowledges that all right, qtle and interest of the Board in and to this Agreement (except for the rights of the Board to indemnification pursuant to Section 13.08 hereof) and the Note have been assigned to the Trustee, as security for the Bonds, under and as provided in the Indenture, and that if any Event of Default shall occur, the Trustee shall be entitled to act hereunder in the place and stead of the Board. In addition, the Borrower acknowledges that the Board has appointed the Trustee as servicer entitled to act hereunder in the place and stead of the Board. This Agreement and the Note, including (without limitation) the right to receive payments required to be made' by the Borrower hereunder and to compel or otherwise enforce performance by the Borrower of its other obligations hereunder, may be further assigned and reassigned in whole or in part to one or more assignees or subassignees by the Trustee at any time subsequent to their execution without the necessity of obtaining the consent of the Borrower. Forthwith upon any such assignment the Trustee shall notify the Borrower thereof. (b) The Borrower acknowledges that payment of the Bonds does not constitute payment of the amounts due under this Agreement. Section 11.02. Assignment by Borrower. This Agreement may not be assigned or encumbered by the Borrower for any reason without the express written consent of the Trustee and the Board. ARTICLE XII. EVENTS OF DEFAULT AND REMEDIES. Section 12.01. Events of Default Defined. If any of the following events occur, it is hereby defined as and declared to be and to constitute an "Event of Default": (a) Failure by the Borrower to pay any Loan Repayment required to be paid hereunder at the time specified herein and the continuation of such failure for a period of three (3) days after telephonic or telegraphic notice by the Trustee that such payment has not been received; (b) Failure by the Borrower to observe and perform any covenant, condition or agreement on its part to be observed or performed under this Agreement, other than as referred to in Section 12.01(a) for a period of thirty (30) days after written notice, specifying such failure and requesting that it be remedied, is given to the Borrower by the Trustee, unless the Trustee shall agree in writing to an extension of such time prior to its expiration; provided, however, if the failure stated in the notice cannot be corrected within the applicable period, the Trustee will not unreasonably withhold their consent to an extension of such time if corrective action is instituted by the Borrower within the applicable period and diligently pursued until the Default is corrected; (c) Any warranty, representation or other statement by or on behalf of the Borrower contained in this Agreement or in any instrument furnished in compliance with or in reference to this Agreement or in connection with the Loan, is false or misleading in any material respect; (d) The Borrower files a petition in voluntary bankruptcy under the United States Bankruptcy Code or seeking relief under any provision of any bankruptcy, reorganization, arrangement, insolvency, readjustment of debt, dissolution or liquidation law of any jurisdiction, whether now or hereafter in effect, or consents to the filing of any petition against it under such law; 11 . . - (e) The Borrower is generally not paying its debts as such debts become due, or becomes insolvent or bankrupt or makes an assignment for the benefit of creditors, or a custodian (including without limitation a receiver, liquidator or trustee) of the Borrower or any of its property is appointed by court order or takes possession thereof and such order remains in effect or such possession continues for more than 30 days; . Section 12.02. Notice of Default. The Borrower agrees to give the Trustee and the Board prompt written notice if any petition referred to in Section 12.01(d) is filed by the Borrower or of the occurrence of any other event or condition which constitutes a Default or an Event of Default immediately upon becoming aware of the existence thereof. Section 12.03. Remedies on Default. If an Event of Default referred to in Section 12.01(d) shall have occurred, the Trustee shall declar-e the Loan and all other amounts due hereunder to be immediately due and payable, and upon notice to the Borrower the same shall become due and payable without further notice or demand. Whenever any Event of Default referred to in Section 12.01 hereof shall have happened and be continuing, the Trustee or the Board. shall have the right to take any action permitted or required pursuant to the Indenture and shall take one or any combination of the following remedial steps: (a) Declare the Loan and all other amounts due hereunder to be immediately due and payable, and upon notice to the Borrower the same shall become immediately due and payable by Borrower without further notice or demand; and (b) Take whatever other action at law or in equity may appear necessary or desirable to collect the amounts then due and thereafter to become due hereunder or to enforce any other of its or the Board's rights hereunder, including without limitation, the appointment of a receiver as provided in the Act. Section 12.04. Attorneys Fees and Other Expenses. The Borrower shall on demand pay to the Board or the Trustee the reasonable fees and expenses of attorneys and other reasonable expenses incurred by either of them, or by any agency of the State selected by the Board to act on its behalf or by the Attorney General, in the collection of Loan Repayments or any other sum due or the enforcement of performance of any other obligations of Borrower upon an Event of Default. Section 12. 05. Application of Moneys. Any moneys collected by the Board or the Trustee pursuant to Section 12.03 hereof shall be applied (a) first, to pay any attorney's fees or other fees and expenses owed by Borrower pursuant to Section 12.04 hereof; (b) second, to pay interest due on the Loan; (c) third, to pay principal due on the Loan; (d) fourth, to pay any other amounts due hereunder; and (e) fifth, to pay interest and principal on the Loan and other amounts payable hereunder but which are not due, as they become due (in the same order, as to amounts which come due simultaneously, as in (a) through (d) in this Section 12.05). Section 12.06. No Remedy Exclusive. Waiver and Notice. No remedy herein conferred upon or reserved to the Board or the Trustee is intended to be exclusive and every such remedy shall be cumulative and shall be in addition to every other remedy given under this Agreement or now or hereafter existing at law or in equity. No delay or omission to exercise any right, remedy or power accruing upon any Default or Event of Default shall impair any such right, remedy or power or shall be construed to be a waiver thereof, but any such right, remedy or power may be exercised from time to time and as often as may be deemed expedient. In order to entitle the Board or the Trustee to exercise any remedy reserved to it in this Article XII, it shall not be necessary to give any notice, other than such notice as may be required in this Article XII. 12 ---- ------- --.---- . .. . ARTICLE XIII. MISCELLANEOUS. Section 13 .01. Notices. All notices, certificates or other communications hereunder shall be sufficiently given and shall be deemed given when hand delivered or five days after mailed by registered or certified mail, postage prepaid, to the Borrower at the address speciQed on the cover hereof and to the other parties at the following addresses: (1) Board: Montana Board of Investments Attn: Bond Program Office P.O. Box 200126 Helena, Montana 59620-0126 (2) Trustee: First Trust Company of Montana National Association Attn: Corporate Trust Department P.O. Box 30678. Billings, Montana 59115 Any of the parties may, by notice in writing given to the others, designate any further or different addresses to which subsequent notices, certifies or other communications shall be sent. Section 13.02. Bindina1 Effect. This Agreement shall inure to the benefit of and shall be binding upon the Board, the Borrower and their respective successors and assigns. Section 13.03. Severability. In the event any provision of this Agreement shall be held invalid or unenforceable by any court of competent jurisdiction, such holding shall not invalidate or render unenforceable any other provision hereof. Section 13.04. Amendments. Changes and Modifications. This Agreement may not be amended by the Board and the Borrower unless such amendment shall have been consented to in writing by the Trustee. Section 13. 05. Execution in Counterparts. This Agreement may be simultaneously executed in several counterparts, each of which shall be an original and all of which shall constitute but one and the same instrument. Section 13.06. Applicable Act. This Agreement shall be governed by and construed in accordance with the laws of the State. Section 13.07. Consents and Approvals. Whenever the written consent or approval of the Board shall be required under the provisions of this Agreement, such consent or approval may be given by the Executive Director of the Board, unless otherwise provided by law or by rules, regulations or resolutions of the Board or unless delegated to the Trustee. Section 13.08. Indemnity. The Borrower agrees to indemnify and hold harmless the Board and the Trustee, their respective officers, employees and agents, from and against any and all losses, claims, damages, liability or expenses, of every conceivable kind, character and nature whatsoever, including, but not limited to, losses, claims, damages, liabilities or expenses (including reasonable fees for attorneys, accountants, consultants and other experts) (collectively referred to hereinafter in this Section 13.08 as "Damages") as follows: (a) For all Damages arising out of, resulting from or in any way connected with the Loan or this Agreement, without limitation; and 13 " . . . , . .. , (b) For all Damages arising out of, resulting from or in any way connected with the acquisition, construction, installation and operation of the Project. Notwithstanding the foregoing, the Borrower shall have no liability for damages solely arising out of, resulting from or connected to the Loan or Agreement of any other Borrower. " Section 13.09. Waiver of Personal Liability. No member, officer, agent or employee of the Board shall be individually or personally liable for the making of the Loan or be subject to any personal liability or accountability by reason hereof; but nothing herein contained shall relieve any such member, officer, agent or employee from the performance of any official duty provided by law or by this Agreement. Section 13.10. Captions. The captions or headings in this Agreement are for convenience only and in no way define, limit or describe the scope or intent of any provisions or sections of this Agreement. IN WITNESS WHEREOF, the Board has executed this Agreement by its duly authorized officers and the Borrower has caused this Agreement to be executed in its name by its duly authorized officers. All of the above occurred as of the date first, above written. BOARD OF INVESTMENTS OF THE STA OF MONT ANA ---------.- David Ewer Senior Bond Program Officer CITY OF BOZEMAN ~/~-~ By Alfred M. Stiff Its Mayor (JESS OR ~ ~X ~ By Robin Sullivan Its Clerk of Commission 14 , DESCRIPTION OF THE PROJECT/SUMMARY OF DISBURSEMENTS FOR t(g~~ CITY OF BOZEMAN \0 Allocated Amount of Loan Description of Items to be Financed 1. Purchase Bozeman Professional Building $675,000.00 2. Capitalized Origination Fee 6.750.00 TOTAL $681,750.00 Draw Description Amount Date of Amount Amount Remaining # of Item Allocated Draw of Remaining Reserved for Item Draw for Item Amount Reserved Amount $ 681,750.00 0484-01 #1 above 675,000.00 3/20/98 675,000.00 0.00 6,750.00 0484-01 #2 above 6,750.00 3/20/98 6,750.00 0.00 0.00 DESCRIPTION OF PROJECT/SUMMARY OF DISBURS-l ------------ -- -- ~ , , f" .' (C(Q)(P'V BORROWER'S DRAW CERTIFICATE NO.1 FOR DISBURSEMENT OF FUNDS UNDER THE LOAN AGREEMENT The undersigned, Authorized Representative of City of Bozeman (the "Borrower") under the Loan Agreement, dated as of March 20, 1998 (the "Loaft Agreement"), by and between the Board of Investments of the state of Montana (the "Board"), certify pursuant to Section 4.04, as follows: 1. We have read Section 4.05 of the Loan Agreement and the subsections of Section 4.04 referred to therein and have reviewed appropriate records and documents of the Borrower relating to matters covered by this Certificate. All capitalized terms used in this Certificate shall have the meanings given them in the Loan Agreement unless otherwise defined herein; 2. All terms and conditions of the Loan Agreement to be complied with by the Borrower as of the date hereof have been complied ~ith and satisfied, and all documents described in Section 4 have been delivered; 3. The item number, amount, and nature of each item of Project Costs, as shown on the attached Borrower's Cash Advance Certificate, hereby requested to be reimbursed or paid to the Borrower (a) has been paid or incurred, (b) is an eligible Project Cost, and (c) has not been previously reimbursed or paid by the Program under the Loan Agreement; 4. To our knowledge after reasonable investigation, there has been no default by the Borrower under the Loan Agreement, which has not been cured; and 5. All representations and warranties made by the Borrower in the Loan Agreement are true and correct on and as of the date of this Borrower's Certificate with the same effect as if made on such date. You are hereby requested to advance pursuant to Section 4.05 of the Loan Agreement the amount shown on the Borrower's Cash Advance Certificate and make payment to the entitled entity to receipt thereof as shown on said Certificate. WITNESS my hand this 20th day of March, 1998. CITY OF BOZEMAN ~/.~~~ By Alfred M. Stiff Its Mayor ATTEST: QJ:- 01' .Lj'g~ By Robin Sullivan Its Clerk of Commission BORROWER'S DRAW CERTIFlCATE-l i . .'""" BORROWER'S CASH ADVANCE CERTIFICATE NO.1 1. Closing Date for Loan: March 20, 1998 '" 2. Project Cost (includes Origination Fee): $681,750.00 3. Cash Amount to be Advanced (wire): $675,000.00 4. The Term Over Which the Loan Advance is to be Amortized: March 20, 1998 through February 15, 2008 5. Items to be Financed (serial number, model): I.t.e.m Amount Purchase Bozeman Professional Building $675,000.00 Origination Fee 6.750.00 Total $681,750.00 SPECIAL INSTRUCTIONS: - wire funds to: American Bank ABA # 092901227 FFC City of Bozeman Acct. # 0311000592 BORROWER'S DRAW CERTIFlCATE-2 . , . PROMISSORY NOTE ~(F\\\@~ \\....,/ ., \. ) 1 FOR VALUE RECEIVED, City of Bozeman, a political subdivision organized under the laws ~ of the state of Montana (the "Borrower"), hereby promises to pay to the orger of the Board of Investments of the State of Montana (the "Board") the principal amount of SIX HUNDRED EIGHTY-ONE THOUSAND SEVEN HUNDRED FIFTY DOLLARS ($681,750.00) or such lesser amount as shall actually be advanced to the Borrower under the Loan Agreement (hereinafter defined) as evidenced by the Amortization Schedule attached hereto and as annually revised by March 15 for every year the loan advance is outstanding, together with interest thereon in the amount calculated as provided in the Loan Agreement, payable semiannually on February 15 and August 15 in the amounts and as provided in the Loan Agreement and as set forth hereto. The maturity date of this loan as evidenced by this Promissory Note is February 15, 2008 or sooner at the option of the Borrower pursuant to the Loan Agreement. This Promissory Note is issued pursuant to the Loan Agreement dated as of March 20, 1998, between the Board and the Borrower (the "Loan Agreement"), and issued in consideration of the loan made thereunder (the "Loan") and in evidence of the obligations of the Borrower set forth in Section 5 thereof. This Promissory Note has been assigned to the Trustee under the Indentures of the Program. Payments hereunder shall be made directly to the Trustee for the account of the Board pursuant to such assignment. Such assignment has been made as security for the payment of the Board of Investments' INTERCAP bonds). All of the terms, conditions and provisions of the Loan Agreement are, by this reference hereto, incorporated herein as a part of this Promissory Note. Pursuant to the Loan Agreement, advances shall be made to the Borrower under the Loan Agreement from time to time upon the terms and conditions set forth in the Loan Agreement. This Promissory Note is entitled to the benefits and is subject to the conditions of the Loan Agreement. The obligations of the Borrower to make the payments required hereunder shall be absolute and unconditional without any defense or right of setoff, counterclaim or recoupment by reason of any default by the Board under the Loan Agreement or under any other indebtedness or liability at any time owing to the Borrower by the Board or for any other reason. This Promissory Note is subject to optional prepayment under the terms and conditions provided in Article VIII of the Loan Agreement upon giving 30 days prior written notice to the Board. If an "Event of Default" occurs under Section 12.01 of the Loan Agreement, the principal of this Promissory Note may be declared due and payable in the manner and to the extent provided in Article X of the Loan Agreement. IT IS HEREBY CERTIFIED, RECITED, COVENANTED AND AGREED that all acts, conditions and things required by the Constitution and laws of the State of Montana to be done, to exist, to happen and to be performed precedent to and in the issuance of this Note, in order to make it a valid and binding obligation of the Borrower according to its terms, have been done, do exist, have happened and have been performed in regular and due form, time and manner as so required; that the Borrower will, as authorized by and according to applicable provisions and limitations of law annually levy sufficient tax receipts or collect sufficient revenues, as the case may be, with other funds available therefor, to pay the principal and interest hereon when due; and that this Note, together with all other indebtedness of the Borrower outstanding on the date of original issue hereof and on the date of its actual issuance and delivery, does not exceed any constitutional or statutory limitation of indebtedness of the Borrower. PROMISSORY NOTE-l , . ~ . i IN WITNESS WHEREOF, City of Bozeman has caused this Promissory Note to be duly executed, attested and delivered, as of this 20th day of March, 1998. CITY OF BOZEMAN ~f4~ ....- .,. /" - By Alfred M. Stiff Its Mayor (SEAL) ATTEST: "'""" elL of ~J/~ By Robin Sullivan Its Clerk of Commission Board of Investments of the State of Montana hereby assigns the foregoing Loan Agreement and Promissory Note to First Trust Company of Montana, as Trustee. BOARD OF INVESTMENTS OF THE STATE OF MONTANA ~!l-.J 0~A / - By David Ewer Its Senior Bond Program Officer SECURITY AGREEMENT-1 . , . ..' .. MONT ANA BOARD OF INVESTMENTS ANNUAL ADJUSTABLE RATE TENDER OPTION MUNICIPAL FINANCE CONSOLIDATION ACT BONDS (lNTERCAP REVOLVING PROGRAM) Municipality : City of Bozeman Final Loan Paym~nt: February 15, 2008 Total Loan Commitment: $681,750.00 Total # of Loan Payments: 20 Total Draws to Date: $0.00 Loan/Draw Number: 0484-01 This Draw Down: $681,750.00 Date of this Draw: March 20, 1998 Remaining Loan Commitment: $0.00 Date of Loan Agreement: March 20, 1998 Series: 1998 Payment Interest # Days Interest Principal O/S Loan Total Amount ----.D~ Rate _.,DillL Payment Pa}'IIleIlt Balance of Payment **Beginning Balance** 681,750.00 08/15/98 4.850% 148 13,407.13 30,015.95 651,734.05 43,423.08 02/15/99 4.850 % 184 15,934.45 27,488.63 624,245.42 43,423.08 08/15/99 181 28,409.55 ' 595,835.87 02/15/00 184 28,855.30 566,980.57 08/15/00 181 29,786.81 537,193.76 02/15/01 184 30,289.06 506,904.70 08/15/01 181 31,231.67 475,673.03 02/15/02 184 31,793.20 443,879.83 08/15/02 181 32,747.46 411,132.37 02/15/03 184 33,371.17 377,761.19 08/15/03 181 34,337.66 343,423.53 02/15/04 184 35,026.61 308,396.92 08/15/04 181 36,005.92 272,391.00 02/15/05 184 36,763.31 235,627.69 08/15/05 181 37,756.07 197,871.62 02/15/06 184 38,585.25 159,286.37 08/15/06 181 39,592.13 119,694.24 02/15/07 184 40,496.64 79,197.60 08/15/07 181 41,518.32 37,679.28 02/15/08 184 37,679.28 0.00 Interest payments shown are actual payments that will be due. Interest payments shown from February 16, 1998 to February 15, 1999 are computed at 4.85 percent. After February 15, 1998 interest rates will be adjusted to reflect the adjusted interest rate applied on the outstanding principal balance. Please make your check payable to: OR Please wire funds to: First Trust Company of Montana First Bank N .A. (Minneapolis) P.O. Box 30678 ABA 091000022 Billings, MT 59115 for further credit to First Trust N .A. Account # 180121167365 Wire Clearing Account # 47300023 Attention: Montana . . . . /0Jr~v CERTlFICA TE OF APPROPRIATION :, I, ({ }!:~ "./)\\ I [I . "-" ' ~'-."....-"'.- .J The undersigned Treasurer hereby certifies with respect to the Loan Agreement (the "Loan Agreement"), dated as of March 20, 1998, by and between City of Bozeman (the "Borrower") and the Board of Investments (the "Board") that: .. The Governing Body of the Borrower will prepare its budget for the fiscal year 1999 and include in that budget an amount designated and sufficient to make the Loan Repayments (as defined in the "Loan Agreement") due in fiscal year 1999. Dated this 20th day of March, .1998. CITY OF BOZEMAN .~~@~ By Laurae Clark Its Treasurer CERTIFICATE OF APPROPRIATION-l --------------- . , (406) 587-5563 (800) 405-5299 Fax (406) 587-8038 Fax (406) 682-5288 1800 West Koch/P.O. Box 396 P.O. Box 1248 Bozeman, Montana 59715/59771-0396 Ennis, Montana 59729 February 27, 1998 The City of Bozeman 411 East Main Bozeman, MT 59715 RE: Escrow No. 1-56702- TC Two tracts in Block D of Blacks Addn., Bozeman, Montana Dear Mr. Stiff, Your exchange with the above captioned property has been completed. Please find enclosed copies of the documents to be retained for your records. Your Title Insurance Policy and any original recorded document due you will be forwarded in approximately six - eight weeks. We appreciate having had this opportunity to be of service to you, and if you should have any questions on this transaction or if we can be of help to you in the future, please contact us, Sincerely, b~( Klondy Phillippi Escrow Assistant Enclosures - =--~~ . "'" , ,r OMB No. 2502-0265 A. U.S. DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT B. TYPE OF LOAN SETTLEMENT STATEMENT 1. 0 FHA 2. OFMHA 3. OcoNV. UNINS. AMERICAN LA D 4. OVA 5. OCONv. INS. 6. FILE NUMBER: 7. LOAN NUMBER: 1-56702-TC 8. MORTGAGE INS. CASE NO.: C. NOTE: E.NAME & ADDRESS OF SELLER: Exchange Corporation of Montana P. O. Box 963, Three Forks, MT 59752 City 120. Gross Amount Due From Borrower: 940,304.71 420. Gross Amount Due to Seller: 928,027.73 Previous Edition is Obsolete SB-4~3538-000-1 Form No, 1581 HUD-1 (3-86) 3/86 Page 1 of 3 RESPA, HB 4305.2 Escrow No. : 1-56702-TC . SETTLEMENT CHARGES . Paid From Paid From %= Borrower's Seller's Funds Funds At At Settlement Settlement mo. to American Land TitleC;ompany 1400. Total Settlement Charges (Enter on line 103, Section J - and -line 502, Section K) Form No. 1582 Page 2 of 3 88-4-3538-000-1 :'~'-' EscrGlw No.: 1-56702-TC SELLER'S AND/OR BORROWER'S STATEMENT SETTLEMENT DATE I 2/27/98 The Seller's and Borrower's signatures hereon acknowledge their approval and signify their understanding that tax and insurance prorations and reserves are based on figures for the preceding year or supplied by others or estimated for the current year, and in the event of any change for the current year, all necessary adjustments will be made between Borrower and Seller directly. Any deficit in delinquent taxes or mortgage payoffs will be promptly reimbursed to the Settlement Agent by the Seller. I have carefully reviewed the HUO-1 Settlement Statement and to the best of my knowledge and belief, it is a true and accurate statement of all receipts and disbursements made on my account or by me In this transaction. I further certify that I have received a copy of the HUO-1 Settlement Statement. I hereby authorize the Settlement Agent to make expenditures and disbursements as shown above and approve same for payment. Borrowers/Purchasers Sellers The City of Bozeman \'BY'~~~-7~ ~lfred M tiff, Mayor The HUD-1 Settlement Statement which I have prepared is a true and accurate amount of this transaction. I have caused or will cause the funds to be disbursed In accord ce ith this statement. Settlement Agent: , '<1 Date: d ,- p( ') f? Peggy ussell, erican Land Title Company WARNING: It is a crime to knowingly make false statements to the United States on this or any other similar form. Penalties upon conviction can include a fine or imprisonment. For details see: Title 18 U.S. Code Section 1001 and Section 1010. . .., Page 3 of 3 ~ , I . . GENERAL INSTRUCTIONS These instructions may be executed in counterpart, each of which shall be deemed an original regardless of the date of its execution and delivery. All such counterparts shall constitute one and the same document. These instructions shall be of no effect unless and until signed by all parties. No amendments shall be of any effect until made in writing, signed by all parties and delivered to Closing Agent. Each party to this transaction acknowledges receipt of a copy of these instructions. All funds received in this closing will be deposited with other funds in a non-interest bearing trust account of American Land Title Company (AL TC). The undersigned hereby release AL TC from any liability for any loss to the undersigned which may result from a lack of FDIC or FSLIC insurance in excess of $100,000.00. All disbursements shall be made by check of AL TC, unless otherwise instructed. The appropriate party shall pay any fees related to alternative disbursements. AL TC shall not be responsible for any delay in closing if funds received are not available for immediate withdrawal. Any adjustment, payment or proration of a Homeowners Association, Condominium dues, unrecorded lien, utility charges, installation or connection charges for sewer, water etc. will be adjusted between the Seller and Buyer outside of closing, unless set forth in the closing instructions. Any water right transfers will be handled between the parties outside of this closing. AL TC shall not be responsible or liable in any maI\ner whatsoever for the sufficiency or correctness as to form, manner or execution or validity of any documents deposited, not as to the identity, authority, or rights of any person executing the same, either as to documents of record or those handled in this closing. Your duties hereunder shall be limited to the safekeeping of such monies and documents received by you as closing agent, and for the disposition of the same in accordance with these Closing Instructions. The principals hereto expressly agree that AL TC has the absolute right to file an action of interpleader in a court of competent jurisdiction requiring the principals to answer and litigate their several claims and rights among themselves and you are authorized to deposit with the Clerk of the Court all documents and funds held in this closing file. In the event such action is filed, the principals jointly and severally agree to pay your cancellation charges and costs, expenses and reasonable attorney fees which you are required to expend or incur in such interpleader action, the amount thereof to be fixed and judgment to be rendered by the Court. Upon the filing of such action, AL TC shall thereupon be fully released and discharged from all obligations to further perform any duties or obligations otherwise imposed. AL TC is to assume no responsibility or liability for the calculation, deduction, or any other act such as the withholding of funds and/or for the payment of taxes in compliance with the Foreign Investment in Real Property Tax Act as amended (IRC 1445 et seq.) or any other Internal Revenue statute or regulation. The determination of whether such tax is due and its payment or withholding, if due, shall be handled by the parties outside of closing. AL TC is authorized to transfer any monies due either of the parties to this transaction to any other closing file you may be holding in order to complete said closing or to pay any charges due you in any other matter. AL TC is authorized to destroy or otherwise dispose of any and all documents, papers, instructions, correspondence and other material eight (8) years from the date of closing without liability and without further notice. All parties to these instructions acknowledge that AL TC does not provide legal advise nor has it made any investigation, representations or assurances whatsoever regarding the legal aspects of compliance of this transaction with any tax, securities or any other state or federal laws. , . . CLOSING INSTRUCTIONS TO: ESCROW NO: 1-56702-TC American Land Title Company DATE: February 27, 1998 1800 West Koch P,O. Box 396 Bozeman, Montana 59715 Escrow Officer: Peggy A Russell These instructions are being provided to you, as closing agent, to facilitate a transaction between Buyer and Seller. The parties hereto acknowledge that they have signed a previous agreement regarding the purchase of the property that is the subject of this closing; and except as expressly modified, amended or augmented herein remains in full force and effect. Closing Agent is to be concerned only with the provisions specifically set forth in these instructions. Earnest Money Deposit with AL TC 10,000.00 Cash From Buyer 930,000.00 TOT AL SALES PRICE 940,000.00 The parties herewith deliver to you all necessary documents and funds required to comply with the terms hereof; all of which you may use and expend when you have satisfied the terms and provisions of these instructions, or are in position to do so, and can issue your Standard Coverage form Policy of Title Insunlnc~ with liability of $940,000.00 covering the real estate which is briefly described as Two tracts in Block D of Blacks Addn., Bozeman, Montana INSURING TITLE VESTED IN: The City of Bozeman. SUBJECT ONLY TO: Exceptions 1 through 4 as set forth in Schedule B of the Commitment for Title Insurance No, 1-56702-TC dated January 8, 1998. Taxes for the year 1998 and subsequent years, City (if any) Special Improvement Districts and assessments which are a lien not yet due or payable. Covenants, conditions, restrictions, reservations, and rights of way of record, easements and the exception of minerals, oil, gas, water, carbons and hydro-carbons on or under said land, now of record. Taxes are to be prorated (365 day year) on the basis of the previous year tax and are considered a final settlement. 1997 Tax = $ 14,295.25 Parcel No. RGH2841 & RGH3317 City Assessments are to be prorated on the basis of a 365 day year based upon the current year amount. Buyer and Seller to equally split your closing fee. Seller is to pay attorney fees for the preparation of documents involved with this transaction. In the absence of a statement for attorney fees, the fees will be paid outside of closing. Owners Title Insurance Policy premium shall be paid for by the Seller. Seller hereby acknowledges that the closing agent has been placed on actual notice of a commission agreement pertaining to this closing and said agreement may not be changed without the consent of the Broker. '. ; . It is the intention of the Seller to effect an IRS Code 1031 tax deferred exchange which will be accomplished under separate instructions. You are authorized and instructed to adjust or prorate to February 27, 1998. In addition to amounts set forth above, Buyer will hand you, on or before the date of closing, funds in an amount to cover adjustments and prorations as set out above, Buyer's closing fees, title insurance fees, attorney fees, normal recording fees, express delivery fees, if any, and fire insurance premiums, if applicable. Seller will deliver to you all instruments and/or funds required to enable you to comply with these instructions. You are instructed and authorized to use and/or deliver these instruments and funds as instructed. From said monies, you are instructed and authorized to deduct and pay Seller's closing fee, attorney fees, normal recording fees, express delivery fees, if any, title insurance fees. You are instructed and authorized to payoff bonds, assessments and/or taxes, also any encumbrances of record, plus accrued interest and charges, if any, to place title in condition called for in these instructions. The foregoing terms, conditions and instructions (including attached General Instructions) have been read and are understood by each of the undersigned, who hereby agree to concur with, approve and accept the same in their entirety. Buyers deposit of closing funds will be deemed a waiver of any and all contingencies reflected on any prior agreement ofthe parties. ~ Closing Agent reserves the right to amend the ffiJD-1 Settlement Statement to reflect changes in payoffs, prorations, etc. in the event that closing is delayed and these changes are deemed necessary for this transaction. You are authorized to furnish to any broker or lender identified with this transaction or anyone acting on behalf of such lender, any information concerning this escrow, copies of all instructions, amendments and statements upon request. BUYERS SIGNATURE(S): Alfred M. Stiff, Mayor Buyers Mailing Address: 411 East Main, Bozeman, MT 59715 SELLERS SIGNATURE(S): .... "0 17 ~ ~ 9 R- ~ ?-i"./.("-X.( ".............'7-' Y tJ1:bf!.~-tpf{, c!;~-l,..(~Qt,~J. j'1 ~ 6c'Y;..{: e/L-L'--r--t~"-' I'~...::t / "Elizabeth E. Williams, by Donald E. Williams, her attorney in fact qJr, "e ~ ~ ~ "/ ~;.,?- -t::.xc_ _.' 'c-. _-c.k_..t, c.-",_.,<--' onald E. Williams, Trustee A O~,.L.:;t!) (L.J~-Gf~--c.~_~nViOIet V. Williams, Trustee . . /& / f JI--t. .'1/~ ~.J_{q~_" '&....-;' 7? CJ Sl:4.llers Mqiling..Adaress: ~.// ".... . .2'~~ /oz4f ~c.:. )/c./ / ~ . . , . .. It is the intention of the Seller to effect an IRS Code 1031 tax deferred exchange which will be accomplished under separate instructions. You are authorized and instructed to adjust or prorate to February 27, 1998. In addition to amounts set forth above, Buyer will hand you, on or before the date of closing, funds in an amount to cover adjustments and prorations as set out above, Buyer's closing fees, title insurance fees, attorney fees, normal recording fees, express delivery fees, if any, and fire insurance premiums, if applicable. Seller will deliver to you all instruments and/or funds required to enable you to comply with these instructions. You are instructed and authorized to use and/or deliver these instruments and funds as instructed. From said monies, you are instructed and authorized to deduct and pay Seller's closing fee, attorney fees, normal recording fees, express delivery fees, if any, title insurance fees. You are instructed and authorized to payoff bonds, assessments and/or taxes, also any encumbrances of record, plus accrued interest and charges, if any, to place title in condition called for in these instructions. The foregoing terms, conditions and instructions (including attached General Instructions) have been read and are understood by each of the undersigned, who hereby agree to concur with, approve and accept the same in their entirety. Buyers deposit of closing funds will be deemed a waiver of any and all contingencies reflected on any prior agreement of the parties. I Closing Agent reserves the right to amend the HUD-I Settlement Statement to reflect changes in payoffs, prorations, etc. in the event that closing is delayed and these changes are deemed necessary for this transaction. You are authorized to furnish to any broker or lender identified with this transaction or anyone acting on behalf of such lender, any information concerning this escrow, copies of all instructions, amendments and statements upon request. BUYERS SIGNATURE(S): ~~/ 77~~7'~ Alfre . Stiff, Mayor . Buyers Mailing Address: 411 East Main, Bozeman, MT 59715 SELLERS SIGNATURE(S): Elizabeth E. Williams, by Donald E. Williams, her attorney in fact Donald E. Williams, Trustee Violet V. Williams, Trustee Sellers Mailing Address: .. . . . ~':,.' .. , ASSIGNMENT OF LEASE AGREEMENTS THIS ASSIGNMENT OF LEASE AGREEMENTS is made this 'L 5 day of February, 1998, from DONALD E. WILLIAMS and VIOLET V. WILLIAMS, Trustees of the Donald E. Williams and Violet V. Williams Revocable Trust dated December 14, 1994, and ELIZABETH E. WILLIAMS, as Assignors, for the benefit of THE CITY OF BOZEMAN, of P.O. Box 640, Bozeman, Montana 59771, as Assignee. The property which is subject to the various Lease Agreements is commonly known as the Bozeman Professional Building and is more particularly described as follows: PARCEL I : Lots I, 2, 3, 4, 5 and 7 feet off of the North side of Lot 6, Block "D" of Black's Addition to Bozeman, together with a strip of land beginning at the Northeast corner of Lot I, Block "D" of Black's Addition to Bozeman; thence North 6 feet, more or less, to a po i n t l' South of the sidewalk on the South side of East Olive Street; thence West parallel with and I' South of the sidewalk, 150 feet, more or less, to the extended East line of the alley in Block "D"; thence South 6 feet, more or less, to the Northwest corner of Lot 1 . thence East along the North line of Lot I, a , distance of 150 feet, more or less, to the place of beginning, such tract being shown on the plat of Black's Addition as a portion of Olive Street, all in Block "D" of Black's Addition to the City of Bozeman, Montana, according to the official plat thereof on file and'of record in the office of the Clerk and Recorder of Gallatin County, Montana. PARCEL II: Lots 13, 14, and 15, Block "D" of Black's Addition to the City of Bozeman, Montana, according to the official plat thereof on file and of record in the office of the Clerk and Recorder of Gallatin County, Montana. The Lease Agreements which are the subject of this Assignment, copies of which are attached, are described as follows: 1. Lease Agreement dated July 10, 1997, by and between Bozeman Professional Building, as Lessor, and Byron Randall, d/b/a, Rocky Mountain Hearing Aid Co. , as Tenant, for the lease of Suite 2-B. The term of the lease runs until noon on July 31, 1998. 2 . Lease Agreement dated December 6, 1996, by and between Bozeman Professional Building, as Lessor, and Walking Cross, I nc . , as Tenant, for the lease of Suite 3-B. The term of the lease runs until noon on 1 . : ... , . . December 31, 2002, and contains an option' to renew for an additional five year term in the event that Tenant has performed all of the terms and conditions of the lease to that time. At the current time, the Tenant is in default in the payment of rent and the Assignor reserves the right to recover from the Tenant any rent which became due under the lease prior to this Assignment. 3. Lease Agreement dated December 6, 1996, by and between Bozeman Professional Building, as Lessor, and Walking Cross, I nc . , as Tenant, for the lease of Suite I-D. The term of the lease expired on December 31, 1997, but the Tenant continues to occupy the premises on a month-to-month tenancy. At the current time, the Tenant is in default in the payment of rent and the Assignor reserves the right to recover from the Tenant any rent which became due under the lease prior to this Assignment. 4. Lease Agreement dated April 3, 1995, by and between Bozeman Professional Building, as Lessor, and Dr. Norman Kenck, as Tenant, for the lease of Suite 3-C. The term of the lease runs until noon on the 30th day of April 1998. 5. Lease Agreement dated July 1, 1997, by and between Bozeman Professional Building, as "Contractor" ( Lessor) , and the Montana Department of Corrections, referred to therein as the "Department, as the Tenant, for the lease of Suite 3-E. The term of the lease runs through June 30, 200l. 6. Lease Agreement dated May 25, 1994, by and between Bozeman Professional Building, as Lessor, and Richard D. Johnson, as Tenant, for the lease of Suite 3-F. The original term of the lease expired on April 30, 1997, but the Tenant has retained possession of the premises since that time and continues to occupy the premises on a month-to-month tenancy, in accordance with Article 21 of the Lease Agreement. 7. Lease Agreement dated July 3, 1997, by and between Bozeman Professional Building, as Lessor, and Hunter Neil Co. , as Tenant, for the lease of Suite I-C. The original term of the lease expired on December 31, 1997, but the Tenant has retained possession of the premises since that time and continues to occupy the premises on a month-to-month tenancy, in accordance with Article 21 of the Lease Agreement. 8. u.s. Government Lease for Real Property, Lease No. 57-0343-7-GA13, Dated March 27, 1997, by and between Bozeman Professional Building, as Lessor, and the United States of America, referred to therein as 2 ---------- . . : - . . "Government," for the lease of 180 square feet of laboratory space and one parking space. The lease shall run through February 29, 2000. 9. Lease Agreement dated June 13, 1997, by and between Bozeman Professional Building, as Lessor, and Mark Behr, as Tenant, for the lease of Suite 1-J. The original term of the lease expired on December 14, 1997, but the Tenant has retained possession of the premises since that time and continues to occupy the premises on a month-to-month tenancy. 10. Lease Agreement dated July 2, 1997, by and between Bozeman Professional Building, as Lessor, and Schlauch/Bottcher Construction, LLC, as Tenant, for the lease of Suite I-A. The original term of the lease expired on October 31, 1997, but the Tenant has retained possession of the premises since that time and continues to occupy the premises on a month-to- month tenancy, in accordance with Article 1 of the Lease Agreement. 11. Lease Agreement dated September of 1990, by and between Bozeman Professional Building, as Lessor, and James K. Babcock and Frances F. Babcock, as Tenant, for the lease of Suite I-A, which has since been transferred to Suite l-B, upon the agreement of the parties. The original term of the lease expired on September 30, 1991, but the Tenant has retained possession of the premises since that time and continues to occupy the premises on a month-to-month tenancy. 12. Lease Agreement dated December 6, 1996, by and between Bozeman Professional Building, as Lessor, and MSE-HKM Engineering, I nc . , as Tenant, for the lease of Suite 3-A. The original term of the lease expired on December 31, 1997, but the Tenant has retained possession of the premises since that time and continues to occupy the premises on a month-to-month tenancy, in accordance with Article 21 of the Lease Agreement. 13. Lease Agreement dated December 6, 1996, by and between Bozeman Professional Building, as Lessor, and MSE-HKM Engineering, I nc . , as Tenant, for the lease of Suite 3-D. The original term of the lease expired on December 31, 1997, but the Tenant has retained possession of the premises since that time and continues to occupy the premises on a month-to-month tenancy, in accordance with Article 21 of the Lease Agreement. NOW THEREFORE, by and through the terms of this Assignment and for and in consideration of the promises, conditions, 3 -----.-- " . . . , . ~ covenants and obligations contained in this Assignment, the Assignors hereby assign, set over, convey and transfer to the Assignee their right, title and interest in and to the above described Lease Agreements, subject to and under the terms set forth below, as well as those contained within the leases. The Assignee assumes and agrees to faithfully carry out the terms of the Lease Agreements as if it was an original party to those Agreements and further agrees to protect and save harmless the Assignors from all damages that may result from the failure of the Assignee to conform to the terms of this Assignment and the underlying Lease Agreements. Unless specifically modified or amended by this Assignment, all of the terms of the original Lease Agreements referenced above shall remain in full force and effect and shall become the obligations of the Assignee. The Assignors warrant and agree that the Leases are currently in good standing and not in default, except where otherwise indicated, and the Assignors further warrant that they are not in breach of the terms of any of the Leases described above. Should it become necessary for any of the parties hereto to institute court proceedings to enforce the terms and conditions of this Assignment or any of the accompanying documents, the parties agree that the prevailing party or parties shall be entitled to recover from the other party or parties all reasonable court costs and attorney fees. In the event that the City of Bozeman is determined to be the prevailing party, it shall be entitled to recover a reasonable portion of the salaries paid to the City Attorney and/or any deputies for their work on the matter, in addition to fees paid to outside attorneys. IN WITNESS WHEREOF, the parties hereto have executed this Assignment this ~"day of February, 1998. ASSIGNORS: ASSIGNEE: & W /~-::i' / p~ ' By: ",_ ICC. ((,f""{/-c.. ." "-(~~ DONALD E. WILLIAMS, Trustee its '1 X' l(l.."rC-:'/ LV (~r,>-~f'-'l,~_,---..,~ VIOLET V. WILLIAMS, Trustee ~ ;... . .,--'.. ".", ... ' . C{;:1 9-f..J:'<;<" .q;t././JZ/;~,;.~---- ~!-/~~b~ 4 r-,!z.4/?y~~ -'r - dftf'A'u-;l~--, </ed ELIZABETH E. WILLIAMS, by Donald E. Williams, Attorney in fact 4 . . . . . , , . - . covenants and obligations contained in this Assignment, the Assignors hereby assign, set over, convey and transfer to the Assignee their right, title and interest in and to the above described Lease Agreements, subject to and under the terms set forth below, as well as those contained within the leases. The Assignee assumes and agrees to faithfully carry out the terms of the Lease Agreements as if it was an original party to those Agreements and further agrees to protect and save harmless the Assignors from all damages that may result from the failure of the Assignee to conform to the terms of this Assignment and the underlying Lease Agreements. Unless specifically modified or amended by this Assignment, all of the terms of the original Lease Agreements referenced above shall remain in full force and effect and shall become the obligations of the Assignee. The Assignors warrant and agree that the Leases are currently in good standing and not in default, except where otherwise indicated, and the Assignors further warrant that they are not in breach of the terms of any of the Leases described above. Should it become necessary for any of the parties hereto to institute court proceedings to enforce the terms and conditions of this Assignment or any of the accompanying documents, the parties agree that the prevailing party or parties shall be entitled to recover from the other party or parties all reasonable court costs and attorney fees. In the event that the City of Bozeman is determined to be the prevailing party, it shall be entitled to recover a reasonable portion of the salaries paid to the Ci ty Attorney and/or any deputies for their work on the matter, in addition to fees paid to outside attorneys. IN WITNESS WHEREOF, the parties hereto have executed this Assignment this ____ day of February, 1998. ASSIGNORS: ASSIGNEE: DONALD E. WILLIAMS, Trustee BY~~/ fl7 41fL its Mayor. City of Bozeman VIOLET V. WILLIAMS, Trustee ELIZABETH E. WILLIAMS, by Donald E. Williams, Attorney in fact 4 ------: , ..- WARRANTY DEED For Value Received, DONALD E. WILLIAMS and VIOLET V. WILLIAMS, Trustees of the Donald E. Williams and Violet V. Williams Revocable Trust dated December 14, 1994, and ELIZABETH E. WILLIAMS the Grantors, do hereby grant, bargain, sell, convey and confirm and transfer unto THE CITY OF BOZEMAN, whose mailing address is P.O. Box 640, Bozeman, Montana 59715, the Grantee, the following described premises, in Gallatin County, Montana: PARCEL I: Lots 1, 2, 3, 4, 5 and 7 feet off of the North side of Lot 6, Block "D" of Black's Addition to Bozeman, together with a strip of land beginning at the Northeast corner of Lot 1, Block "D" of Black's Addition to Bozeman; thence North 6 feet, more or less, to a point I' South of the sidewalk on the South side of East Olive Street; thence West parallel with and I' South of the sidewalk, 150 feet, more or less, to the extended East line of the alley in Block "D" ; thence South 6 feet, more or less, to the Northwest corner of Lot 1 . thence East along the North line of Lot , 1 , a distance of 150 feet, more or less, to the place of beginning, such tract being shown on the plat of Black's Addition as a portion of Olive Street, all in Block "D" of Black's Addition to the City of Bozeman, Montana, according to the official plat thereof on file and of record in the office of the Clerk and Recorder of Gallatin County, Montana. PARCEL II: Lots 13, 14, and 15, Block "D" of Black's Addition to the Ci ty of Bozeman, Montana, according to the official plat thereof on f i 1 e and of record in the office of the Clerk and Recorder of Gallatin County, Montana. TO HAVE AND TO HOLD the described premises, with its appurtenances unto the Grantee, and the Grantors do hereby covenant to and with the Grantee that they are the owner of the premises in fee simple; that the premises are free from all encumbrances except zoning ordinances, building and use restrictions " reservations in federal patents and previous conveyances, beneficial easements apparent or of record, covenants of record, terms and conditions of subdivision plat approval, and the lien of the taxes for 1998 and subsequent years; that this conveyance is subject to those covenants contained in Section 30-11-110, MCA, and that they will warrant and ~ ' defend the same from all lawful claims whatsoever. . /'" di) Dated this ___ day of February, 1998. .) .-S;~*;-~:? ~" ~ .-'<-" r - \(.. .b\1.~rl.i' ~ c:r:.L/d).- '0-=---" Z !17.....[O:::~, < 7L)("kj~.~;;'~ ,i,:zt;:""-T --r~ ) DONALD E. WILLIAMS, Trustee ELIZABETH E. WILLIAMS, by I" Donald E. Williams, attorney in. fact . / - t. ./ . 1.--. I ),< I( , K.- .:"'<"<--<....r (/, cv;,~ L "'---""r <""'"L VIOLET V. WILLIAMS, Trustee STATE OF CALIFORNIA ) County of \fY\p-e\("\q ( ) 5S. This instrument was acknowledged befor dl5" , 1998, by DONALD E. WILLIAMS and /l,ET V ___~IL / .. ....." . , OFFICIAL SEAL . i ...... '. ANGELICA BANAGA LL!.l4\.-J \ COMM. * 1056102 = Notary publlc.Californla 6 IMPERiAl COUNTY .- " My Commission E~plres J JUNE 21,1999 ~ ~.........'.... ..... _ ~ ~ _ _ ~ _ -W"'Io. _ STATE OF CALIFORNIA ) :SS. County of ) This 1998, by WILLIAMS. - -- - -- - H 1 OFFICIAL SEAL . ANGELICA BANAGA .. COMM. * 1056102 is . Notary Public.Callfornla L rn 1. a IMPERiAl COUNlY 8 My Commiulon Expires J JUNE 21, 1999 o /23/98 MaN 11:08 FAX 14062854910 EXCHANGE CORP MT ~003 o /2.1/9$ !\10!'l 09:45 F.'-X ,406 5~7 80:18 AM"Ji:RlcAN l.AND l(lJoos , , Order No. 1-56702A-TC City ofBozemlln Property Februa.ry 27, 1998 i AMERICAN LAND TITLE COMPANY EXCBANGESETTLEMENTSTATE~NT Exchange Corporation of Montanll Acquisition I DEBITS CREDITS Exchange Value - Property I 940,000,00 ; l:"rorations.: Ta.-..;;es 1~1 to 2-z7~98 2,232.41 City Assess. 1-1 to 2-27-98 44_S7 Closing Cosu: 2nd half 1997 Taxes 7,111.94 Commission at 6% 56,400.00 1/2 Closing Fl;l:: 150.00 Anorney pees 300.00 Title Insurance 2,303.00 F~dera.1 Exprellll F~e8 40.00 Exchan,se CO$ts: Exchange Closing Fee 200,00 Transaction Fee 1,000.00 Exchange Value. :Property II REPLACEMENT PROPERTY , TO BE DELIVERED AT A LATER DATE NET EXCHANGE VALUE - Propeny r 870,218.08 TOTALS 940,000_00 940,000.00 f .. EXCHANGE CORPORATION OF MONT ANA BY~{)~ J Byr Pn::l1d t Date!: February 27, 19 l!I ; ! j-~ .. AFFIDA VIT OF DISCLOSURE OF NON-FOREIGN STATUS (Internal Revenue Code ~ 1445) Dated 7-/j .') / 19 9 $?'" at California ,1M6i~rfa . , / Regarding the proposed sale/transfer of the following real estate: r;:;FF l\'T"T'l\rHFD T.F.r.M, DF.r;:;rRT P'l'TnN This affidavit is intended to comply with Section 1445 of the United States Internal Revenue Code to disclose and certify the undersigned seller's/transferor's status as a resident of the United States. for reliance by buyer/transferee. Seller/Transferor: . U. S. Taxpayer Identification Number (Social Security No.): I r-r- /4- -0 ~ "7~ - Seller/Transferor: DONALD E. WILLIAMS AND VIOLET V. WILLIAMS REVOCABLE TRUST DATED 12/14/94 U. S. Taxpayer Identification Number (Social Security No.) "{"IC,'- 3G-~ 8'7~ I. ONe). Elizabeth E. Williams, Donald E. Williams and Violet V. Williams . hereby certify and declare: (X) 1. I am a citizen of the United States of America, ( ) 2. I am a resident alien of the United States of America; My resident status is established by the following: ( ) a. I have been declared a permanent legal resident of the United States by the U. S. Immigration and Naturalization Service. Resident Alien Registration Number: . or: ( ) b. I have resided at least 31 days in th~. United States during the current calendar year; and my days of residence in the United States over the last three years are as follows: Current calendar year. . . . . . . . . . xl= Last calendar year. . , . . . . . . . . . x 113 = Second preceding year. . . . . . . . . x 116 = Total Since the total shown equals or exceeds 183 days, 1 meet the substantial presence test ofInternal Revenue Code ~770 1 (b )(3) ( ) 3. The seller/transferor is a domestic corporation. The fair market value ofseller's1transferor's real estate interests (including leasehold and options to purchase) is less than one-half seller's1transferor's total assets (not including publicly-traded stock) ( ) 4. I am neither a United States citizen nor a resident alien as defined in Item 2. above. In the absence of a "qualifying statement" as defined in I. R. C. ~ 1445(b)(4), or other special pennission from the Imernal Revenue Service, I authorize the buyer/transferee of the above referenced real estate to deduct and withhold ten percent (10%) of the final sales price. I fwther authorize the escrow holder to deduct said 10% from my disbursement at close of escrow, and to deposit it as a federal tax deposit in an authorized commercial banle 5. I acknowledge and consent to the reliance on this affidavit of the brokers, agents, escrowholders and buyer/transferee and other interested parties in an}' transaction regarding the above referenced real estate. 6, I declare under penalty of peIjury that the foregoing is true and c~r- e qn/~f (. ,- :) ( k -;et L"" ~,).. ('-"---I- Datc: 2-/1- S- _ 19 I ~ ' Sellerrrransferor: '{ ,J2;~Ll~,-<~ { ql.-~=Q."t(.o:l.-,/" ~/t:t0--Vl.'~r'(~, ~ozX: I ......... .J ~ ~~abeth E ~~lliams ~ Dalc: 2./2 S . 19 '1 ~ . Sellerrrransferor: Hr..",.Q.P 2!: ~L//lj(Ll ~.-1.-. ,,~ D::5nald E. Williams, Trustee ACKNOWLEDGEMENT OF RECEIPT OF AFFIDA VlT OF DISCLOS~~r' ~ ~f? . I ' 1fY b(.. "--'f--;>>,._~ Oat ,.;(..JJ 19 ' . 1 t . ] 1 . t e, . Transfpror Vl0 t=! V. W~ 1 aITls. Trus ee Datc: _ 19 Buyer: Buycr's Broker: , .-:r ~'" . . -~ AFFIDA VIT OF DISCLOSURE OF NON-FOREIGN STATUS (Internal Revenue Code 9 1445) Dated 19 at California ,IMOrt~da Regarding lhe proposed sale/transfer of the following real estate: ~p.p. A'M'ArHRO T.F.r,AT. OF.SrRTPTTnN This affidavit is intended to comply with Section 1445 of the United States Internal Revenue Code 10 disclose and certify the undersigned seller's/transferor's status as a resident of the United States, for reliance by buyer/transferee. SelIerrrransferor: RT.T7.ARR'T1-I F.. WT LL TAM'; I U. S. Taxpayer Identification Number (Social Security No.): ,~ Sellerrrransferor: IX:NALD E. WILLIAMS AND VIOLET V. WILLIAMS REVCX:ABLE TRUST DATED 12/14/94 U. S. Taxpayer Identification Number (Social Security No.) I, (We), Elizabeth E. Williams, Donald E. Williams and Violet V. Williams , hcrcby certify and declare: ( ) 1. I am a citizen of the United States of America. ( ) 2. I am a resident alien of the United Slates of America; My resident stalUs is established by the following: ( ) a. I have been declared a permanent legal resident of the United Slates by Ihe U. S. Immigration and Naturalization Service. Resident Alien Registration Number: , or: ( ) b. I have resided at least 31 days in the:. United States during the current calendar year; and my days of re,sidence in the United Stales over the last Ihree years are as follows: Current calendar year. . . . . . . . . . xl = Last calendar year. . . . . . . . . . . . x 113 = Second preceding year. . . . . . . . . x 1/6 = Total ~ Since the total shown equals or exceeds 183 days, I meet the substantial presence test of Internal Revenue Code 9770 1(b)(3) ( ) 3. The seller/transferor is a domestic corporation. The fair market value of seller's/transferor's real estale inlerests (including leasehold and options to pur~hase) is less than one-half seller 's/transferor' s total assets (not including publicly-traded stock) ( ) 4. I am neither a United States citizen nor a resident alien as defined in Item 2. above. In the absence of a "qualifying statement" as defined in I. R. C. 91445(b)(4), or other special pcnnission from the Internal Revenue Service, I authorize the buyer/transferee of the above referenced real estate 10 deduct and withhold ten percenl (10%) of the final sales price. I further authorize the escrow holder to deduct said 10% from my disbursemenL at close of escrow, and to deposit it as a federalta.... deposit in an authorized commercial bank. 5, I acknowledge and consent Lo thc-reliance on this affidavit of the brokers. agents. escro\\'holders and buyer/lransferee and olher inlerested parties in any transaction regarding the above referenced real estate. , 6. I declare under penally of perjury that the foregoing is true and correct. Dale: . 19 SellerfI'ransferor: Elizabeth E. Williams Date: . 19 SellerfI'ransferor: I:k:mald E. Williams, TI1lstee ACKNOWLEDGEMENT OF RECEIPT OF AFFIDA VlT OF DISCLOSURE Date: .19 Transfp.ror Violet V. Williams. TI1lstee Dme: , 19 Bu)cr~~~_~~7"'? Buyer's Broker: . . , I . . PARCEL I: Lots " 2, 3, 4, 5 and 7 feet off of the North side of Lot 6, Block "0" Blaoklg Addition to Bozeman. together with a strip of land beginning at the Northeast corner of Lot 1, Block "0" of Blackls Addition to Bozeman: thence North 6 feet, more or les!;;, to a point l' South of the sidewalk on the South side of East Olive Street; thence West parallel with and l' South of said sidewalk 150 feet, more or less. to the extended East line of the alley in said Block · D"; thence South 6 feet, more or less, to the Northwest corner of said Lot 1; thence East along the North line of said Lot 1, ,a distance of 150 feet, more or less. to the place of beginning, said triilct being shown on the plat of Black's Addition as a portion of Olive Street, all in Block "0" of Black's Addition to the City of Bozeman, Montana, according to the official plat thereof on file and of record in the office of the County Clerk and Recorder of Gallatin County, Montana. PARCEL II: Lots 13. 14 and 15, Block "D" of Black's Addition to the City of Bozeman, Montana. according to the official plat thereof on file and of record in the office of the County Clerk and Recorder of Galla'tin County, Montana, ATTACHMENT "A" , . , i ASSIGNMENT OF BUV..sELL AGREEMENT THIS ASSIGNMENT, is entered into by and among Elizabeth E. Williams and The Donald E. Williams and Violet V. Williams Revocable Trust dated Dec. 12, 1994, , herein called "Exchanger" and Exchange Corporation of Montana, a Montana Corporation, herein called "ECOM" and The City of Bozeman, herein called" Consenting Party". R E C I TAL S: WHEREAS, Exchanger and Consenting Party heretofore entered into that certain Buy- Sell Agreement a copy of which, together with all addenda, exhibits and amendments thereto, is attached as Attachment "B", wherein Exchanger agreed to transfer that certain real property as described in Attachment "A" (hereinafter referred to relinquished property), to Consenting Party; and WHEREAS. Exchanger entered into an Agreement of Exchange of Real Property and Partial Escrow Instructions with ECOM, pursuant to which ECOM agreed to acquire and transfer to Exchanger certain real replacement property designated by Exchanger; and WHEREAS, Exchanger wished to be relieved of the obligation to so dispose of such relinquished property and the rights attached to so disposing and to substitute ECOM in place of Exchanger under the Buy-Sell Agreement to allow ECOM to complete the transfer of said property as part of an integrated, interdependent transaction between Exchanger and ECOM which qualifies for tax deferral under provisions of Section 1031 of the Internal Revenue Code. NOW THEREFORE, the parties mutually agree as follows: Exchanger hereby assigns and transfers to ECOM their right, title and interest in the Buy- Sell Agreement to dispose of said relinquished property (except as otherwise provided herein). Consenting Party hereby consents to the assignment of the Buy-Sell Agreement by Exchanger to ECOM upon the terms and conditions contained in this Agreement. ECOM will convey said relinquished property to Consenting Party pursuant to the terms and conditions of the Buy-Sell Agreement. ECOM has not made or assumed, nor shall ECOM make, assume or be liable for any covenant, duty or obligation of Exchanger which may remain in effect after the closing date (defined in the Buy-Sell Agreement) and Consenting Party hereby releases and discharges ECOM from and against any claim, liability or expense arising from or in connection with such covenant, duty or obligation of Exchanger. Consenting Party's sole recourse shall be against Exchanger with respect to any claim or allegation of Consenting Party arising from or in connection with this transaction, and Exchanger shall not be relieved of responsibility for any covenant, duty or obligation agreed to by Exchanger prior to this Agreement by, as a result of, ECOM's intermediate acquisition of the relinquished property. ECOM's obligation to close escrow and assume the obligations of Exchanger under the Buy-Sell Agreement is conditioned upon the review and approval by ECOM of the Seller's escrow instructions and any other documents related to the transaction prior to close of escrow for the transfer of the relinquished property to Consenting Party. Notwithstanding the foregoing, in the event the escrow for transfer of the relinquished property to Consenting Party from ECOM does not close on or before the date set for close of escrow in the Buy-Sell Agreement, unless such date is extended by written agreement of the parties hereto, this Assignment Agreement shall be null and void and the Buy-Sell Agreement .. , , , . shall be reinstated in full force and effect between Exchanger and Consenting Party without any further obligation or liability on the part of ECOM. The acknowledgments and agreements of the parties set forth herein shall survive close of escrow and recordation of any deed or other instrument in connection herewith. Consenting Party acknowledges that ECOM has not made any warranties or representations of any kind with regard to the relinquished property and Consenting Party is not relying on any representations or information provided by ECOM. Any warranties or representations made in the Buy-Sell Agreement or otherwise shall be deemed to be made directly by Exchanger to Consenting Party and all rights or remedies arising from a breach thereof shall be enforced directly against Exchanger. I This Agreement may be signed in one or more counterparts and all such counterparts shall be treated as one agreement. Qualified Intermediary under Exchange # 184: Exchange Corporation of Montana, a Montana Corporation By: Date Exc2!~er~s):, ~.-z. / '{ ~ ~- ~ ~-( . v -L. / a'1.-___/_ - - ~ ,12~ .4;;O-A-,,4..jl e ---7--L<--c.t' G,,,,::-" Date '7-( ~ S/98' Elizabeth E. Williams <<-.--. UL'..-~;r-_______ --' o-.<--:T:_ The Donald E. Williams and Violet V. Williams Revocable Trust dated Dec. 12, 1994 By: ~vL,S..L C!:' ~--./(RQc..,.~2-v Date -L/2_ s-I?t 'g"" Donald E. Williams, Trustee ~t/~-/- c!J I; ) e'~ ' Date .J (.":?J -.;7-1 By: . _ ,,;s,- . ~/'-::>-". "~--<.,,-___ Violet V. Williams, Trustee Consenting Party: The City of Bozeman By: Date . . ..., . shall be reinstated In full force and effect between Exchanger and Consenting Party without any further obligation or liability on the part of ECOM. The acknowledgments and agreements of the parties set forth herein shall sUNive close of escrow and recordation of any deed or other Instrument in connection herewith. Consenting Party acknowledges that ECOM has not made any warranties or representations of any kind with regard to the relinquished property and Consenting Party is not relying on any representations or information provided by ECOM. Any warranties or representations made In the Buy-Sell Agreement or otherwise shall be deemed to be made directly by Exchanger to Consenting Party and all rights or remedies arising from a breach thereof . shall be enforced directly against Exchanger. I This Agreement may be signed in one or more counterparts and'all such counterparts shall be treated as one agreement. - Qualified Intermediary under Exchange # 184: Exchange Corporation of Montana, a Montana Corporation By: Date Exchanger( s): Date Elizabeth E. Williams The Donald E. Williams and Violet V. Williams Revocable Trust dated Dec. 12, 1994 By: Date Donald E. Williams, Trustee By: Date Violet V. Williams, Trusfee Consenting Party: ~::~;/;? ~ Date , ..~ , PARCEL I; Lots 1, 2. 3, 4, 5 and 7 teet off of the North side of Lot 6, alack "0" Blaok's Addition to 802eman. together with a strip of land beginning at the Northeast corner of Lot 1, Block "D" of Black's Addition to Bozeman; thence North 6 feet, more or less, to a point l' South of the sidewalk on the South side of East Olive Street; thence West parallel with and l' South of said sidewalk 150 feet. more or less. to the extended East line of the alley in said Block · D"; thence South 6 feet, more or less. to the Northwest corner of said Lot 1; thence East along the North line of said Lot 1, a distance of 150 feet, more or less, to the place of beginning, said tract being shown on the plat of Black's Addition as a portion of Olive Street, all in Blook · D. of Black's' Addition to the City of Bozeman. Montana, according to the official ralat thereof on file and of record in the office of the County Clerk and Recorder of Gal atin County. Montana. PARCEL II: Lots 13, 14 and 15, Block "0" of Black's Addition to the City of Bozeman, Montana. according to the official plat thereof on file and of record in the office of the County Clerk and Recorder of Gallatin County, Montana. ATTACHMENT "A" u ~''''1 '"0' "tI ~'^.A. 4Utl 667 6036 AMERICAN LAND lil1009 U~/~0/9o ." ~u,~ L nac-~4-~7 12:22 PM MGK.~~n R.nl~~ n~d Ins ~0. ~87 0026 ~-01 m- - AGREEMENT TO SE!LL AND PURCHASE 1:5) (Indudj"ll E.,nUI Man., Ro.,./pC) P^G(. 0(2 = '-l 0 .. __ I TN. ...."I,acl .lipul".. 'h. ''''0' 01 .... 01 \hI. prOp..lty, R..d "..lun, belo,. IIgnjnv (\r>cill~i"ll inlQ(m.1lon on po"" 21. Thl. I. I :011 bI , ."........ 1 ..ndo",lood. ...k compole,,1 .:Ivlc., 11i.........n . ,",on'o".. D*C-w.o"o "'9 "1 o~"1l C<>l\Ir..,~ II "01 J - --_-5'llV. of" ..........." ~ u B JTR(lS 0 T C 4 o-....lli.n", calh!d 'Buy.") og,u. 10 pu,cJ..... "'.... ~.. u'odc,IIIl1n.d s..n"r ""'.... 10 ..a lho following duaibood ,.. Ulole lI.,olo.,' re, ed I ' .1. 00 0111.... 5 tonowli U "~---'-:l0 & Ol.Lv.. ., ,e , 0" ptem,,,,,. ",,",monly Ii n "'. City 0( B""'"'"""'n 7 County 01 g..l.l..t.Ln .MOflI.......lI.o/fyd__lbedu 8 La!:. 1-5 7' oCr. lot' Lat.o .1]~l~ :~lk D 1I1.~1I:" Add'" 9 _ _ _,.__ ~ 10 TOGETHER WITH ~ ~..'u",. ollod1vd 10 "... obon-desctil>.d ,ul P<'opIrrly...d oll~ btMdlog ." O"Ue!ur". "~.-pl; lfono II , 12 IIMOKE QsTEC10R1.): P,opetty hu II - Im<ll<e 0:1.1"'1<1'(.), 1) The loIIowll"lQ ken,. 01 p"sooal P'opelly. "ee o/lie"s ..,d ....llhoUl ....at,""lY 0( e..ndifon. a... hd\,d< I: Hono 14 15 _~: 1/; ~Je1 fOR EARf'/f'ST -"~ The IJ/ld",...glled O,okor at S"'.""....", ",,,by .,knawle~eo '....'pl ~...... 11",,0' 01 ...".,~ money 0 lh. ."'ounl of 17 T.n l'ho,...,..,o;j lltn.Il...JLa/lOo VS DoN 1a IS J..a. 01111 Q Q ) ~ evid.,,,ce<I by 0 c.ol,. (IJ e/1""lt.. 0 or . _ .., 19 Alparlies10 Ihl,vali"cIIOl1,a\l'"''"'01 Ihce.me..".",Ic.will be d"posiledpu,"uonI 10 Monlali' t_ol ../In 3 bu. dey. o~ .."'''_...~..n'"'o .,dsvo;h 20 rv"do wfll be h.dd In a dep;>o,!o,y .-.:Q>unl by ~n Land T 1 tollo .J.j>IT1DLn.... . B,ok",. P...-ti.:s 011'.. 1h,,'InI"~'1 a=tuln~ 21 on "'Ii.~1 mC>"'ley, II "'y, v.t>ile depoSlled shall b. p~yoble 10 , II......." ." 1n,.,...1 ~ payible 10 .,,, 21 9'01<", II is "Il,eed 'hal sums.., p<"<1 (J(O cons/deraliOIi fo' ""'v,,,.. "'"def.d. ../p '.;:1:. --h- .., 7 // n HJ.ch...1 L,--ns."'.""''' By. r~ _", ,///' ____~ _ ~ 2. ts.n~ Re.1 Eo..t. Fi,m) (SlqnolV,. 01 Sah.."",.."..) ,< 25 OT PURCHASEPeJ.~5; ,tu.". HU-"'d..d For..... Thou''''''d A.nd 00/100 U.S,OOLl.ARS aJ CS-----l.f~.2..J2.ll~ Ipayoblen/ol..".",; :n $ 10 . Q 0 Q , 00 ..mul mOf'.y 10 b.. o""R.d al CIOO.'Q, 28 S . _~ "" .oddinl>I1e/ "uh d"",,, P~YI1l'''I, I".yabl. on or l:olfote do~. ?i $ ~ 3 0 . 0 Q Q (10 b.I....Ol ollh. pu"ch.,. prlco will be paid oS 1011_.: C." h 3:l 31 C1D.t~a ~n~ r..~L-~~_~200 ~o bw .D]~~ e~l.llv be~.~h p.t~J.a 32 JJ SPfC'ALf'ROVISIQ~ii :rh.!..L...!J:J'..o;,.a"~Lon ir ~"ina.n1: ""on t.". l::.,lio..-1n",: 1] "-"ciI::Lc....L'i11l. of" ..h. ."cwoc... Il"~ Jo4 '.-1-1 bv th.. fJ,n~mmJ.."j,on. -'] ;rh. c .~1"" <> ~. "e."n. . t.ib".' _Q .,,1'. ".1. .., ~"';.. ....d 35 aot>"<>YlLL9C~..a~-=-----...:L.LE"~._,. -~-L "'iCJ, ~/~;.... ~.. ';';~ '~~,~ ~'i.~'~-:~; ,. ),~. .'. ..~ . .: ~..: 36 .IIU.I.):.oX-..lL1.l..-1._~~.uIU;.~~Z:_"1l00""" 1:;0 ,,"1 .... 1 T" "" h ~h~ll.""Y ]7 ,,~~ ...l-+"".t'. ~ . ' r\--= ___ 3B . - _----1- ' .. 39 <0 i'dd"r.jum(s): II :i 01-/"".. Tn-oIAdd."c:Ntl1Co); ~"aow Di.c1.uu"iIII....{\..don .1 OISCO~NT ,,"01/.115: Jr a Buye, obloi". fin""dllQ f'om 0 lend.. requltl"ll dl""""nt point.. Se/lClllll'~" lQ pay";""",", POint. up lQ" m..mum of 42 pelC.1i1 ~___ %) 0' 'he Buy.,'olo.o. &uyer Joh.... p~y ~ oil,,,, cfi""",unl polnlo, _ 43 CONVEYANl::'i:. fhe S"ner ",~Il /XlO"'y Ihc 'cui P"'f""'Y by ~ ..""~,o.l:.v Oeo:d.~" 01 all I..". .,d eoc;:umblonc:.. exc~pl 4' tho... de'crlb.d.... U.. 1111. I".u,...,.;. ....,Iion 01 It>l. "lI'.......nt, T". Scl"', .,,,11 c"",,oy "" pe'5ona' P'<;>po,ly by bill 0/..."', .S TlflE INSUR.Alfj;;'~ S.U",. .1 S.""... '<pM." .hall lu,nlsll Buy., TIlkllnSUIOllCa .videnc:ed by. slancl....d Ic:o'm Am.n;:lan La"d n.. As.,dallon IIhln......n". =mmll"'.nl 46 in 8/TlOlllil ""'1U""o U'" f'lJ'''''''''' priee. con-mlllin" lo irls",c ",,,,cho,,t.bl. UII. Jo .... ,ul property In lIw BIl)'et', nlllTle, In... an4 dear 01 en hns at1d enc:umbran"". <:xc.pl: 47 """.."obi....... h",e;" melillon~, lOO;,-,g ."dln.ncu. bu\1dillll ond use "":llIlc:lion.. 1...",.lIons In Itd..,ol pill,"'s. benellcfol uliliJ)' ....emeol. .ppar'"l 01 al 't<:OfO, 45 ".....m"nl. 01 '"",,,-d, Sp...d~II".pl\,.em."1 Di$lr;C;:ls (i"dudi"lI ,u,a/ SID.), ilany. vwhich ..III be: l&J paid orr by San", al do>l"ll D ."'umed by Buy., .. dosing. MTd 49 SO _ Sl II"'e Sell..", IlIIc i. ""I '".,ch.....labI" ""d c"""ol be mode n..,chan'.ble bo'",. 'h. st.ltd closlnll dal.. JO AODITIONAL DAYS SH^Ll BE AU..OWeO FOR THE SEllER 52 TO MAKE SUCH TilLE MEnCHANfABlE, En<:tJ"'bi."""slo be dl&charged by rhc SoMe, ",./1 be ullsfi"d p.;or 10 "lo"II~'" ',om s..n..f. p,o,,",".!..1 rima of closing 53 TAJ(E~ AN.Q_MliS~_~.E!Q.t; S./I",.....d Buye' Bg''''' 10 pro,al. 1"-<,,",, _1;0/ imptl>vemeol ."".IT"",I. rot Ihe <",.,.,,1 l"" y.... .. wel ~. p'&-plllid "ilia. II...y, .. 01 ~ the d~le or dosing. un!.$..$. olherwi'lOe .arjJ'~Bd. . 55 CLOSING DA TE: fhe <1.,. or c'o.i~ .tooll b. H.."ch 0 1. 11" Th. pallleS ""Y. by /nulu. "1I'.e",..,I. "'II,.... '0 clou lh.. """""110" II any 56 Um. prfor 'I> Ih. .."" >p""ir..d UII,I,d "arly rOll.""ing i. '.qul,.d by III. wmu '" lIll. 8O'-m.nl rlllCludu aUVmplloli'. "oo,,"""~ 10' d..ed.. _ lend.., ""'''''''''ll). a.... "Iooinll S7 ...n <x>:u, on fh.. ";;I" .pe.oif,,,,, 0' as "'00 !he,une, as n"anclliQ I. "ornple/. bul 00 101..- Cha" da"" aile, !he ,ttled dosi"ll <Jol.. Th. auy... .lid Sa"",, will deposil ~ with rh. c1os;"1I ageot oil inslrulllrnlr and monies "ee"..."y 10 comple" "'e plln:h.... In 8C'C<>Id""". with IN. 1Q...menl.. II lIuy.... I."!. 10 o,,,k. ""in"" 'ppllcallon I", S9 ~n.""ino .rp'y fo, ...umpli"n 01 an .,.1.11011 10... or "0111'",,1. 0' ;"IOa,. ",y ""lion requited ,,,, =mplel;.,n '" . "C>"'Itrael 101 d...,d by 5,00 pm (malHlloln ~m..) 60 '.~-~. - --- . Buye' will be in breach llnd Sellel can ue,ci.. Sele,'. le"",diu vnde, IN. 1I\J'''emeo'.1I r,~"",,lng i. ".'ed 10' h."," ....d cOllnol 61 boo obl.ltJed.;' i. "9'"ed lhallhe OSlll,,' mOl1ey ....1lI be 'al.....""" 10 .h. BUYOI. ijJ F_H A BU'rER: Th" ~pp,.lsed ",",u. olll'le P'op<!"'" ~InQ p\IIcnaJed. fat mO"Il....,e In.lHO/lCIl potpo..... mU$11lO1 be.... rhan 6.] ~_ &l ($ I, Pt...... 1.''''' 10 1111. ...doll On O'Ie 'e""'$e of thl. IOlm'O/ addiUonal disclo.ll'l':$ 011.01.11 '~hts, 65 ~.....8.l...lfB.M...LlJ::!ALAB.(!lti~FU fl ~~~ AGRE~~J? tlAE ~~NTg~ ~N f':T~e 2 OF HIS f RM PLEASE RfAD PAGE 2 Of THIS FORM 66 AS THESE 1ERM..S-\:o'.l!.l..MLill_JQV~~. SPONSleIUTI~ NO T A E ME 61 The p......i.. 10 Ihi, ",>/,..n",,,' (Onl"'" Ihal tt,. r...1 e.lal" lre.n..... Id""lIfted h.",,,n,,, lI11vt bo,e" Involve-d Iii V>is V-a".OI<:1.Io" Iii U,. ".p~c:i"... IndicalQd belo", an4 lhc p;onl.. 6IJ I>a"", p'."~:sIy '"".Ivt<1 'h. 'OQ\I;'." ,','ulo,y ",..do.VI.' "'"i"III1>'1lI lhe lie"r""". dulier ~ the Ioq,it. or mai, oblllla(;on. 'I> each pll<1y 69 70 _.k!!.L0"_".k.~.J. ------ 1>1 wi t.t .. l'I....o"j.. "... IS Iclinll" 00 s.n.,', Bro~."SiOl...~.on. 0 Dual 71 10..,.. or r....n.'..1 (....... 0' &"'''''0 """",,1 Elrok",/S.Ie!lpC''''''; U SlallJl~ lI,ok., 72 H."--b!'-!U...J.........t:15..!Ulnn.. 01 --.....M~Jl...1I.lUl1 tv . Ihs"r &1'>".. i. IcHrv.. 00 6"y",.. 6....k"rlSal".f!~: 0 Dual 7J In.,,,. 0' ''''.'....1 (M..... <>Ilk....,... <""".ny) Btok"lSal"speISDn: USltlulory B'oke'. 7~ 0 Se/l",'s 8roke"Sal.'~rs.on (oooudu s.n.,.. 75 Sub.B,okOl ()( Sel.spe~on), 76 6VYEFl'S A.CI<NOI'fhf.QQEMJ:.l:iL Buy., IlCknowl"dgu 1I1al h. "No ."~""'1i8IJ Ihe 'eal .." poISon" p,operty. Ihlll Bllye, enl... llilo !hi. ",,'umo"lln, tun ,,,II.,.,.. upon 17 hi. ind.p"nd",,1 it)veSlIQ.Uon and judge".,,,nl. rha' prlol v",bal ,.p'....nlan"". by"" Sell", ... Sell.,,'. B'oke, 01 'cpr""'nlallves do nol modify 0< ""eel Chi. agl..".,,,nl ."d 78 lh., by .ill"i"O IN, .\I'""m.", Buy., aCk""..,.do;;J.. h."'nll 'cad and understood lhi. mOra ""'''<lne''l Inc:ludlng u-... leI".,. pr1nl.d 0/1 11>" .""'ot>d pall. 01 thl. daC\J~nl. T9 eUTER. '5 CO~M1HI!E!il: 1m. ag..e 10 pvlLh.... u,,, abo"..ducdbe<l P'OfI".l!Y on fl. !e'ms an<1 candldans ..., forth in Ihe abova olf., and lI'anllo ...Id S""'Pe...,,, un~1 M ~~o 3 1991--" 5 : 0 0 0 "'" 00 pm 10 ,,""'U,. S.RM. IM'"en "'''''pl...~, 8llyel may wllhdr_ U,i. orre, al any tirn. pr101lo 81 Strlle(s Ifr'TINe-n lIICi.t:)pIJl~. 8l If Seller ha..s "01 i1CC't'pled t~~G~rn~ specifi".d. this orr~, is .i1.l1()m8th:.i~y wl(hd,rwn. H) ~ HEflEB,(AJ;,I:V:!QW - '"",.Ipl 1>1. <<OPt 0/ 1I'l1. RGCEIPT AND AGREEMENT To SE~L AND PURellASE bea,inll my/ou, "glialw.(." ~. .-\ M auy.,'. Add,..._ _._~~ .-..- B\lyel Slgn.lu,.~ ." f: _ - Cic Clr BOJ:..-n.an 8S P!,on. 9u~ Slgn...."'- HIi s.f.lliB..:..S...~El!.L 1m. "Il'.. I" ".n 'lI'>d cO""cy '0 Buye, Ih" obov"dc.<ribe<1 proptorty on lh. ler",. and c","cli,I"". hc'..,.,abo.... ".Ied ItW. ac:knowl.dQ. 'oc.lpl P.7 0' A CCJP'I of rhilO t'IQo't:'~l"Ief'll bl!'.:J'~ my/ouI :I~n~h.,rc(,) and UI.1 of IMe Buyet "amad .tlbove. DAIC'd ~i: day Dr ,19 M .1 _.____ Ume 0 am U pm '\ 89 ">\) s.e..,'. Ad<J,... "~"""~_"....m'_" Sene'S'9n'1lJ/O: Do~_ld ~. M!111~ ~l 92 P""ne, Sen~!SIg".'U''': klL.o.b.th E. "il11~ ... :0 MONTANA ASSOCIATION Of REAL TORS4> REVISED 11"0/96 M~":'cl'lnll ",,,..llj & 1I"o"\..o,.iIl\'O' t'r"' Oil' If.J,I IID,q,I..II''I.\cl ,?111.167j ,.....' '<>"-"""" 'n ""'"''-''' ATTACH M ENT "B" 02/2'0/98 FRI 09:37 FAX ~06 58,7 8038 AMERICAN LAND , 14JolO D~C-:2"'-~"T 1:2:2- PM r'1et<.n.....a. R.G. I "'" ...nd Xn. 406 ~II!!I"T 0"'28 1"."':2 AGREEMENT TO SELL AND PURCHASE 1I"""....fI"" E........ Mo""r 1ll....IPl) PA.OE 2 ., 2 1 eV~R'~~~liQI.~ (AlII Iho So'" 1~1s 10 aa:epI.,.. Ort", conlAlIMd 1rI "". og,um.ntwllNn lh. lln.. ~d provided in tw! BUYER'S COMlo,lITMENT _ctlon. all ,.~at 2 ""'" u , I 1.to.Jn,~41o /he Bllye, 3 rB) H It>e S"er .a:~l'ls ltMl olle, 0:<>111"'''04 In 'Ib ..,,,,,,,,,,nl krl ,eruks '"~ ntoglOl:l. 10 __aurnm"r. It-. ~......,tlon .-lfl'llll .". "~ ,..1104 ,.,oll'ld'" Itl lhi. "ll"'.._nl. "" ~ 8\JY8l moy: 5 (1) O"",and l"",,*dI.'~ ..p~yn..nl ", a~ ,,,,,,n... ".~ Suy... "". p..ld 19 lh, ..In repr.....nl.."", ... U,nul m."..,y. and upon 1110 ",'um 01 au"" lTlO""y lIle light. ...", du~. 6 0( Buyel end Se"'" urd"r lhi3 ogr""m.nl ..-'" boo krmll"Ie<S; 01 7 (2) O.mand 11I;0( Sd., s~cl/lc~y poorform 5"'...... obUq..'1ons und.:r Ill. agree_nl Of 3 ~:I) O.m~ mor..l...y dllm"'ll.' /tom Sder [or S"'Ier','./lu,e 10 perform 11><1 101m. 01 n.l. O\l/~m""l. 9 Ell.ER'S R!!hlEOIES, 111110 Sd., acr~pl$ "'" ..tr.., conlalned In IN. ~""rT\OI'\l .nd Buy~ ,.ruse. 01 noqlecl. 10 con.umm.'e ...... ".....ctIo" ""11>'" Ill.. 11m. peri<>d 10 proyld"" In IN. "Ilru",..n!. n,,, Soli... m.y: . II (I) Docl.,. II.. ..m..1 mon.y p.ld by Buy" to II1e ulu r~f''''...nl.oll''. be 'ortdod; 01 '2 (2) O.m.nd 111.0. 8uy..' 'P'>"I~c"'l'y p",lorm llu1'l'. dul"" GIld "b/lll'~OI\S \If\dor INs 109,eornc:nl; 01 1:1 (:I) O.m."" l/I.t Buy,,' pay man.lory <lam""",. 10' Buy.'. ,..lul. 10 port.,..m !he I""". of 11>1. ~...menl. 1~ BUYER'S CEliIJE.lCMl2lt By enl.II"g InIO IIll. 109'. """',,/. ne" pe"..,n or pe'm". .."",uII"ll 1111. lIg'.."",nl IS Buyo, ,.prUenls lIlat "-,... I. olllhl.en (1&) ,.."'. 01 15 '"9~ Of older. 0( "";"'d mind. .nd "'1l"'1y """'P""mllo 0.... 10.01 pRlp<llIy 'n rh. 51.1. ot M.",\"".. .ord it .,tlng an behalf ..I a ""'J'OI.Uon. p""",,"lohlp. 01 ollle, non-"""'." 16 en~ry 1II41l ""/sllO I. duly i'ulhon,,,d 10 ."1", j"lo Ih. "'IIr..m."1 on boh.ajt 01 .u<:h ",,51)-. 17 SElLER'S c..EBl1fK.e.liQt/...; By .n...ring Inlo Ud. aOl...rn.nl a-.h 1>"'''''' 0< po"""'. ...ccutinq II';. lIgr""""'n1 00$ S."", '<flr...""I. Ih.1 hcl."" ia .~hl"" (1ft) yUts 18 0' aQ'O- 0' oId." 01 ..,un<! mind. .nd I..g.ny .,,'iII.d ~ thl. ..... 10 ".n.I., 'Ue 10 "'" 1...1 p,opoorty fr... .nd cle., 0' .R lien, and oncvrnl>ra';"'.' ..eep' 0" d"cllb.d in 19 Ihl. SQloom.".. ",.d jl kinO 0" b.h..H 0' . c"'poral.,n. patll1.'a',lp. 01 o!he, /IoII.t>um.on .ndry Ih~t hcl5he I. duly .ultlorl....J 10 .nlollnlo Ih.s ~...m.n' 01\ bohalt ol.uch 20 ."tily, 21 COH5ENT !9~Q.llJ~~Al',~.; Buy", ..Id S~", helelor _:ocnl 10 Ill. p,O':lII......nt ,,"4 d'!ill;losure by Buy.,. S.ller. an4 s.. ~pI....nl"lIv.. ",,4 ~I, 22 .n"",.y.. "'\1onl.. olhel p"I"'. ha",ng """.'1$ ..nnllal 10 .,1. .,r....men'. 0/ ....y "'d'~" 1"'OIIn.:.ti",, rea$Ol"lably n.cessOf)' 10 COf'l..mm,,'. !he Itan.;;oeti"" described 2J In "". aog...n""l 'I""c;fica'y '''dULling />C~.. 10 e""'ow. /0110"1"",, otl%>l\".oo::,.. d_.. trust Incl.lllu,es. 0( sim~... documents 011>1I0' 1I..,s.ac~ con...r"'"g IIlls p'ope<fy 24 or und...ly;ng obliQallon. p..,I'III,lno '''erelo 25 ~~~ s.n., -.eII d..N.., p<>.......", ",td ocCJpancy ~ BUye' Il/l U.. clo."g d"l~ unl.... oU>eIWI5e oogr....4, , <.'6 aLS.K.; -i AI L:>.. 01 d~m;og. 10 iIIlY 01 II>ot .t>a...de'lC:liblrd... />fop.nry 01 personal pro,..,tly 10 any cau... I. anum.d by Sell., lhrough Ihe tlt". 0' "losing un"".. 27 olt>erwille Sped no.d. 23 TIME IS OF' TH~ E~~ nn'" i. 01 lho "'00""'. in 11>1. ;.gro"","nl <<ld .", d""SOG he,ti,l. 29 BINDING El:f~~D NON-AS.~~ Thi. ..,reem.nlb bI/1dif'lg up"" 1M ""irs. su.:auSO/s. a>d ...."'11". 0( e1JC" 0( th. p........ he,.,o; h_ev".. Buyo', tight. 30 und", ,hr. aoroemenl we nDI ..o/I:jnable wll"oullhe Sea", S "'pI"US wrlll.n o>n..../. 31 ATTORHET fEES' 10 eny rrcUon b'ought by ltto Bur-r o. 111. 5101 leI 10 enlColu ...y or i',. ''''m. or 1111. ogree"",nl, Ih. pI""aIIing p"'ty I" sudl .,lIon sh.U be .nUlled 10 32 wch IO",on1Jbl. ..homey rees a. Itlo """'II or ",b1o~IO/ sh;oll delO'llTllne Jvsl 1.) i'.A.....fil.lUB.t; II I. up'"s.sly ilQrew ....al "",lwilh,lllndlng any oll'lc!r pl"ovlslOlu 0' Ihls eOl\~ao:l, 'Ie Buye, $/loll nol I"""," any l>Olnal1y by IQrfel...,.. of Dam..1 ~y 0' :IS 011\",..,.,.1".. bot oblig~led 10 comp'ele Il'l. flU/ch.." 01 Ille r<'Opelly cle"",lbad hOleln, I' !he CClll":lI::1 I'",<:hu. price or cool "~""'cd. /he leesontable ."a/ue 01 Ille properly 35 ...lal:oll$l'1ed by !hc V.I.,,,,,,, Ad,nI";",."on, Th. Buye, ch"". how..".r. have Ih. p<1vllc;o .nd opllon 0' pto.:"eding wilt> th. """SUtntn~~n 01 ....is eonl/lOcl wi thou, "'g.1ll J6 10 tl>e .mount 0' I"" Ie 05011..01. ".k/_ ullJbllsl1ed by lhe Vel.',..... "dmlni",.lion. 31 E....!:i..!.._D.!.l...Y.E.B.S" In /he ....nl Iunds 10' I"i. lIanucnon "'. 10 be d.,....ed I,om .on I',H ^. In.u,&<1 '0,,". III. "'"r...s'y l'g'ee4Ih~. norv,it.$l"ndlng ....y oth., p'''''islons 01 36 Ihi. ""nllllCl. 1110 6ul"" '''foIl "01 be obng~l~d ,10 <:0I1'l'l.... U.. pure/'n. 0111>. pro"".,., ~ucrib,,4 he,~" 01 10 incul .ny """ally by lorreltur.. ot o"'ne:;1 mon.y depo.1ls 0' 39 olho"";:oo, union lI,a Buyer "a. ,..".I""d a wllllen !l1.le""'nl'uu"=d by Nle F't'dl:/at Hou.1/1g C"""""lsslon.'. Veler""s Adn';";",.lIon, 01 a O;'OCI EncI"'''"",nl lend., ...Iti/'IQ ~o Io('h ""0 <>pp,..I.td .00u. of !I.e p".pcny for morlo"'}e in....,an"" PJlJ>n.cs 01 noli... !han !he "",OUII' ....1 Ior!h Dn Ill. r.veue .lde otlhis document in Plc ...cliO/l entiUed 41 I',I1,A. Buyer(,), ",hien l/'hOunl I. in""rpor.l.d I><!,.,ln by ,er...nce. The Buy., shall h...e Ill. pr/Y~elle 1l,Id opr.on 0' ploc.....ding wtll> I"e ..-on,ulnm..lon..t !hI. CD/IIIMI "Ylll'1oul ~2 rCQ./d '0 ,,,. .mounl 01 "" app'''.''''' "afu~lion mlKle by Ihc "od"., Housing CommiastolM<. Tho app,ai_d ."tu.';"n I. ar,i-;.d .' 10 del..,mln.. .,.. mulmum 1n001gaO" 4J ,Ioe D'f''''lmc'''l 01 1I0".i..g .....<1 U,b"" O.."lopn,..nl will I..."'e. ~IUO d"",~ nDI W.'''"I P,.. y~".JC /l0' I", con din"" 0' Ih.. plope'l)-. Tho Buy... shoulc/ J~'is'/y him,clllh.,..,N ~~ IIl.11t>c pri"" ."d """dllion of Ihe properly ar.. aca:pl.ble, ~5 fiXTURES: All pe'manenlly In.I:'!I"'" n'lure. and nulllOs tnol "'. ."~he<J 10 tn" ploperty a'e IndllUed in lIle pUtchase pice. .ueh .... elecllleal. plumbl"O. on4 heotinq ~6 n"\JI"'. wood .10.... buill,", ""P"",,~s, .c,,,.ns. .torm.do..... .tunn ..indo....... ""rlaln 'odo. ....d ha,dw.,.. anO<;hed 11oO< CDvelinl/O. T.V. 0111"""1$, ~I <:oole, Dr <:""dllo""l. H g.."\/,, d"", 0""''''''. ..,d contro/.. dllached fi'epl""e .quopnl.nl, meHbo~. ..nd ...... end .tll'ubs, U ~~lS'-/t TI'>o s.n",.. C01'/1mflm'.."llo p"y " cotnrnl...Jo,,1n o>nneCllon wilt> Ihl. "",,s.,llon ... ..n I"logr&ol pa1 01 tie "'iI'ument, 49 'MILt:: Th. palU.. .u'.... Ihal .. ,,,,,"11. o:r>py 01 lhl'lIg'ftmonllo Sell and Purc"_ which Lontalns lhe pa/1lu oi;nalur.. moy to: u...d II !he O/lgln;ol. I P'c>pe'ty Add'~'5: ___.~._ _~'L.~"''' D..CI~~~ 01. 1 '117 ~.r,:y1t;'f};';' --, Sellef(~}' _ ~..~,",n...l.~-!..:.....!!..t!.l~__' .c.l12...bkh. r.. Ifl11l~ ----1~. -00(,1' all"l~r('S); ~_._.__"........El:...E:L_,?.L_~~~!' I _~._~___ .~ - .:t.oI.1 Sll91' o tmRIJf ATTACHMENT "BII CONT. ~1~-S!N3V\1HO".L.LV .' ~ (~)'uIl.-$;e "',1... ~";.~ )~i,d LXV ras ~ :"Ie~~y O~r' 109:;i'o/ ,~~(Mn ;;t,!:.,=<LJ J~4 ll~~ g , '\;AoC:"Il.""'i~FW~1r~.o;JUL,\ . ""'...... '~UQ,I.lI'~ :. ~ ~'f'd '1!J.)/\211 1Aj,9~.,1 ~~,;,...~~ JGo'..''il-","~lI:% u.I<:.;t,t. ~;",!;-S"""1;lGf l:Q ~ 5'J IU1 0 po~-,--- 7-' "6!~'~ ~ L"''' ~~.a.~ PFA:j 1:t:.Jj pr.: ~e ~'a:;-> 'I,J U/:P/\; l~ f:...w,Q po..e m.ll: ~ "" ~Q ~..or;r ~ -=~ q :oIlJOi' '-'^" . 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(M J 3' lOHd ,Ldl):':3-:l rid 3"tn 1,lt.l3:31 ~rt':." : 1,Ilidcj 9a.d 8zae L6liO 9131>- Hole] 1U.II p....,o "'...I'O....~ 'D...u....>4-:>~ lo-ld 6C::2:t J.. 6- 1>-c::--:::l"3a', aNV'1 NY::> I H3JiV 91:09 L8S 90~ XVd 61::60 I&l l/6/0~'izo ... .... 021..20)98 FRI 09:39 FAX 406 58:1 8038 AllER I CAN LAND . , . (dJ015 'DE:" - 2 4 - 9 7 12:31 PM MeK.nn..,. R",Q.It.~ o;Lnd In:!\. 406 5a7 0028 P.07 " " P~'Clf''j ; ';t.R-IBEIo'..., 1.1:'L~. p'.'. P.E':.C1!::,. . . . . _ .. . _ P~CIlIF: I'P). : 7~a3$2(lS47be3~28g9~ D-= .: . 11 19'37 0-:1: 36AM P6 . I. ... oJ .,... ww ~ """ ow ~...t. al 1031 Tax. Deferred Exchange Addendum.. (Sellar) G) ::"l~ I n reference to th eo 8 uy/S€lIl Agraamsnt betvJe.erJ CHy qf So %Q2...., I (Suyer) and OoCOLl d E:.. ~ iJ. h atM ..JJ:H aJx1th J:. vi11io1l.lU . {Seller}, .- \ : dated' ~,.. 01, '-SIn- Q:lvering tnCil followIng c:lesaibed prope~ 2Q .t. oliw. Elo.z~, 1-a SQ715 --- - . ~-----_._.....- ..----- . - . ..---- Bt.rysr hereIn B.c:::N-lowl&dges tha.t it is the intention of the SeUer to complete an IRe $e(tion 1031 ~-<1erwred axCh;;Jnge. Buyer agrees the Selle/"'$ rights and obrrgaDo';s ufJder the, ogreement may be aS5igned to t8.dlltate. Sucl1 exchange and U,i.s agreement may be part of an int~rated. interdependent exchange agreement. Buyer agrees to cooperate with the Seller ill executir19 sucI1 documents as Imy be necessa!y (0 enable Seller to quaJtry for s.aJd exchange at no addWonal cost 0( fiability to BU)'ef. Q / /7~~ . ,--. 11// /4.::L ~ ' ''fl,~(~f!... :-c ~ "-~<.:.""""'''' -, s,.Jkl( Oci~~r.l. t. Fli.Uiaas OatefTime ..,... ~-. r . r ...f G' t E..~ .~ - i. ,.di. ~ -,-[c/JG-1-'-- .<, f.-b.L.~'~."'-: v ...-- /2.. / /Lfl. 7 Sa n CI" . &.U.7.:t bo3 t:.h F.. 'j( ill i u:s t::.J,..---.Y'c-r-.~.c.4 _<,d-" o~eftlJ'ne - - ~t !o,~--- ~d",7 ,./; 00 h.;-~ !uy€f' Oat rrne --. DCWTrme 8l.{)'er * l-.loNT)J.J.A A$.9OC LA. '11 ON 0; RVJ... TOR'S!l If~1 J:llZVl8 go If IJ&106 ~ ~.L t.--.- F,?' "'"'" Im!lo<==...a' :'1'7\.1", .I~~ JIluoo:: <I:IS- '!1fT <T.T.l rtlJ ~ ClQ .U ATTACHMENT IlBIl CONT: . - OU'20/98 FRI 09: 40 FAX '40-6 5d7 80.:38 AllER I CAN LAND , . . , IlEC,:-24-97 12:::12 PM MeK.nno. R..o.l't.v o.nd Ins. 406 ~016 eaT 0028 p.ras ;'0&-1': 'SlJ!'18EI4f'l U'd: E R\) RE':.oF"T . !"'H!:N IE I'uj, : 7G03S~7i54iG@3S289~2 (lee. 11 '1'-:f'j" \j;:o. -' ~M1 I I ~ .. ,,_ I l \J I (. J. ~ .J ~ .... ~ .' u J , U .& =--.J .. "ill -LlL' ,~:i :-VI" ') I4i UlIll W. COUNTER OFFER G) -- ....-......."".. Tnls o:luntEr ofTer pertains to g SuylSefl Agreement dsted 'eC:;~1".b~;- 1 . 19 S7 , by and b etYr' 00 n T"'ot'.a:d E. W:. 11 :. a a::i II 10 c:: Z 11 E '" !:.ll~ : h "- ~illiu:s (Seller) and (' i t y n f Rn 7. ~r.~_ (Buyer)OOncerrUng tne pruperty desc.1 iued as: l~ t. s 1-5,7' ~ff 7..ot 6/ Lots 13-::'5/ Sl.r. D, Bl-acks ).~:1. - - - I - AJllhe terms and conditions ~f l,e BlJyJSeU Agreement rarerred to ~boYe and ~ny prier CX'!unter o1"fa/'3 are hereby [ncorpor2.ted by refer~nce except a, mC'diiied by the following tel"lTls and provision:!: Thp bure~..:..:L.LOlll'" coo'" ~.i...!:~,e_.'l.cJ Q!;1 O'l rp !:o ~~ n'11:.~~6 , sat1sfi,.,d, or ~,!. LYe~ ~,,~ ~4-W" e-.. -- .1) C:'i or- b..t'ore 12/16/91 - 2 ) On Qr be~ora 1'2/22/97 ALr.:.i...:.hi.tl.-5.._bu,slnR<'Ilill c\Ol.pl of d~1f\'l!r1 n!' ti!':iA dO~\1mQ"~~ to ~. -4-f.---J;l ~ ':> t' p...:. ..f '" 11' 9 12f~.Q./.Qi . - .. . .~- ~ AceeptBnce of this counter offer may be made by prc...iding a srgn$-d oopy to the offering partY or their .gefrt prior to ---12./, '(/Q1 r; . r'l.o~?o!-- (Da'telTime). Off'3r1ng party may \N'1ti,dreW this cc-unter offer any!1rr'\e pr10r to receMng wtitIerl accept.2.nca. If ao::aptanca is nol given to the offerin!;j pi!lrty or thei:- asent by e;.;plratlor. of the time for acceptan::a, this offl;1r Is then null and void. \~'4P "",:; >--CJ~eL<,-<---~ i V / I / <{ 7 6ell~; I _P ,...... Dale ~l,Jyer D,;tp. \ <.-~_ _,.e~~<'1;...,,{{J?..._-- _ ~'L7- ~~ v.).._<~......--:,,-r-f..;~.v,, Dat~ Buy&:" Oc.t. . ~ ; 1'-cI:' 6:::fj.:::"'...:..,,~........_ ,:'7. NOTICe:: The termS appearing in thi! document. including but not lImi'ted to Sellsr Agent. Buyer Agent, Dual Agent. StaMory Bro)(ef, SL.L.b-Agentand Adverse Material Fac;t. ,He specIfically drefined In TrtJe 37, Chapter 5~ of the Montana Code ,A.nnotate<i 2nd are not intended t" create ... relationship or oblig~lions othp.r t.h6n eo 5C de-flnea. =,tJO/o{{' /l.l'V\ ",~\A T10f'l OF 8.d'J. TQ~~ F.~",;irl ~o. n is ATTACHMENT "B" CONT. , , -, , . .. . . , RELINQUISHED PROPERTY DIRECT DEEDING INSTRUCTIONS Elizabeth E. Williams and The Donald E. Williams and Violet V. Williams Revocable Trust dated Dec. 14, 1994, , ("Exchanger") and EXCHANGE CORPORATION OF MONTANA, a Montana Corporation ("ECOM") have entered into an Agreement of Exchange of Real Property and Partial Escrow Instructions ("Exchange Agreement") involving the exchange of the Relinquished Property described in attachment HAlf . ECOM intends to sell the Relinquished Property upon or shortly after acquisition of the said property. . Accordingly, in order to save duplicate recording fees, escrow'costs and other like charges, ECOM instructs Exchanger and Exchanger hereby agrees to execute a deed to Relinquished Property in favor of Buyer. In addition, Exchanger agrees to execute all bills of sale and assignments of leases, transfer all security deposits, and other assets comprising the Relinquished Property, which are necessary to close the transaction described herein, directly in favor of Buyer. The above transfers are part of an integrated, interdependent, mutual and reciprocal plan intended to effectuate an exchange by Exchanger of Iike.kind real properties pursuant to and in accordance with the provisions of the Internal Revenue Code Section 1031 and the terms of the Exchange Agreement between ECOM and Exchanger. Qualified Intermediary under Exchange # 184: Exchange Corporation of Montana, a Montana Corporation By: Date [~_ ,q~''-/<cflL~ ~ ~ 2--t..-- Date 7--(2. 571?;- ___ -',- /~ ,- l-<~ ^"'"?" ~ - "7:- The Donald E. Williams and Violet V. Williams Revocable Trust dated Dec. 14, 1994 ~C) ~.1 ~> - - y~ ----, Date ~I ~5-{,? 1r' By: ft- r~_' _ c: - < ~..../~( _ j)LO_-....,_ ~-""' Donald E. Williams, Trustee ~ L(~F/;/J t-/ k2?-e~~~~-~,", Dat~;.2:S '7J By: _' ~- ~- --- Violet V. Williams, Trustee Buyer(s ): The City of Bozeman By: Date . . , , - -." '. , ~ . .. . RELINQUISHED PROPERTY DIRECT DEEDING INSTRUCTIONS Elizabeth E. Williams and The Donald E. Williams and Violet V. Williams Revocable Trust daled Dec. 14, 1994, , ("Exchanger") and EXCHANGE CORPORATION OF MONTANA, a Montana Corporation ("ECOM") have entered inlo an Agreement of Exchange of Real Property and Partial Escrow Instructions ("Exchange Agreement") involving the exchange of the Relinquished Property described in attachment I'A". ECOM intends to sell the Relinquished Property, upon or shortly after acquisition of the said property. ", Accordingly, in order to save duplicate recording fees, escrow costs and other like charges, ECOM instructs Exchanger and Exchanger hereby agrees to execute a deed to Relinquished Property in favor of Buyer. In addition, Exchanger agrees to execute all bills of sale and assignments of leases, - transfer all security deposits, and other assets comprising the Relinquished Property, which are necessary to close the transaction described herein, directly in favor of Buyer. The above transfers are part of an integrated, interdependent, mutual and reciprocal plan intended to effectuate an exchange by Exchanger of Iikewkind real properties pursuant to and in accordance with the provisions of the Internal Revenue Code Section 1031 and the terms of the Exchange Agreement between ECOM and Exchanger. Qualified Intermediary under Exchange # 184: Exchange Corporation of Montana, a Montana Corporation By: Date Exchanger(s): Date Elizabeth E. Williams The Donald E. Williams and Violet V. Williams Revocable Trust dated Dec. 14, 1994 By: Date Donald E. Williams, Trustee By: Date Violet V. Williams, Trustee Buyer( s): i:;47J~-~ ~17 Date / . ... ... . "" . .. PARCEL I; Lots 1, 2, 3, 4, 5 and 7 feet off of the North side of Lot 6, Block "D" Black's Addition to Bozeman. together with a strip of land beginning at the Northeast corner of Lot 1, Block "0" of Black's Addition to Bozeman: thence North 6 feet, more or less, to a point " South of the sidewalk on the South side of East Olive Street; thence West parallel with and " South of said sidewalk 150 feet, more or less. to the extended East line of the alley in said Block" D"; thence South 6 feet, more or lass. to the Northwest corner of said Lot 1; thence East along the North line of said Lot l.a distance of 150 feet, more or less. to the place of beginning, said tract being shown on the plat of Black's Addition as a portion of Olive Street, all In Block "D" of Black's' Addition to the City of Bozeman, Montana, according to the official fa'at thereof on file and of record in the office of the County Clerk and Recorder of Gal atin County, Montana. PARCEL II: Lots 13, 14 and 15, Block "D" of Black's Addition to The City of Bozeman, Montana. according to the official plat thereof on file and of record in the office of the County Clerk and Recorder of Gallatin County, Montana. ATTACHMENT "A"