1979-12-28_GENERAL DOCUMENTS - C1981017

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Mid-Continent Resources July 14, 1986 Page - 6 - REVISED INCOME APPROACH (MORTGAGE EQUITY) In the Elwood or Mortgage equity capitalization method the revised assumptions include the availability of a 75 percent ratio mortgage loan at an 11 percent interest rate with 30 year amortization, which is down one percent from the previous report. The cash flow, or equity dividend requirement of the equity investor, is projected at nine percent, a reduction of three percent from the previous report. The projection period of 5 years remains the same. During the 5 year projection period, it is estimated that the property value would not increase or decrease, where in the original report an increase was anticipated. REVISED INCOME APPROACH SUMMARY (7/14/86) (MORTGAGE EQUITY) Assumptions: Net Income before debt service (as before) $200,222 Available Mortgage Loan - 75% Ratio 1 1% interest - 30 Year Amortization Equity Dividend Rate - 9% Change In Property Value Time period - 5 years + or - % Change - 0% Capitalization: Basic Rate 0. 104649 Less Appreciation 0.00000 x 0.00% 0.000000 Plus Depreciation 0.00000 x 0.00% 0.000000 Overall Rate 0. 104649 Valuation: $200,222 Divided By 0. 104649 = $1 ,913,271 Surplus Land $392,040 INDICATED VALUE - INCOME APPROACH - Mortgage Equity $2,305,311 Applegate & CO. Real Estate Appraiser,