INVITATION TO BIDTIMBERLAND with DEVELOPMENT and CONSERVATION EASEMENT OPPORTUNITIES

The Property known as the “Hobson Tract”Powhatan County, Virginia±1,410 Total Acres Offered at Sealed Bid SaleFriday, June 30, 2017 at 11:30 a.m.

American Forest Management, Inc. (AFM), acting as agent for the owners of the “Hobson Tract” (Seller), is pleased to present the following information regarding this outstanding ±1,410-acre timberland property. This sale represents an excellent opportunity for long-term financial returns while also providing the prospect of rec-reational and wildlife development, along with real estate development, or the sale of a conservation easement.

The tract is located in south-central Powhatan County along the Appomattox River, approximately 25 miles west of the greater Richmond area. Recreational opportunities include white-tail deer and turkey hunting, the establish-ment of quail populations, 4-wheeling and trail riding, as well as kayaking, horse back riding, biking and other uses.

Directions: From Richmond, drive west on Highway 60 (Midlothian Turnpike) towards Powhatan, VA. Once past the intersection with Highway 288 By-pass, continue approximately 14.7 miles and turn left at the stoplight at the intersection with Highway 522 (left on Emanuel Church Rd. State Road 1002 at the Sheetz). State Road 1002 becomes Highway 13 (Old Buckingham Rd.). Continue 6.5 miles and turn left on State Road 645 (Bracketts Bend Road). Continue straight and the tract will be at the end of the road in 1.5 mile. The approximate address is 1503 Bracketts Bend Rd., Powhatan, VA 23139. Contact Broker for right-of-access permit and access to the tract.

Property Description: The property is a well-managed timberland tract with forest management activities pro-vided by Bickford Timber and Land Management. It has approximately 2.8 miles of frontage on the Appomattox River and approximately 6 miles of interior woods roads providing access to the interior of the property, although high-clearance vehicles are needed in some areas.

The tract has 6 stands of mature/merchantable timber (approximately 569 acres) and 6 stands of pre-merchant-able timber planted from 2008 to 2016 (approximately 841 acres). The timber types are further described as follows:

Upland Mature Hardwood Timber ±208 acres

Bottomland Mature Hardwood Timber ±275 acres

Streamside Management Zone Timber ±72 acres

Upland Merchantable Pine Timber ±14 acres

Upland Pre-merchantable Pine Timber ±841 acres

A survey map of the tract and its surrounding properties is available as well as a timber report from Bickford Tim-ber and Land Management. Access is provided by a deeded 50-foot right-of-way from the end of Bracketts Bend Road and a prescriptive right-of-way north to Highway 13 that is recorded in the Powhatan County Court House.

The tract is offered for sale by sealed bid at 11:30 a.m. on Friday, June 30, 2017. The bid may be contingent upon a limited number of standard requests; however, bids with fewer contingencies and with more secure fi-nancing will receive a more favorable review. Bidders are encouraged to review the property, verify available information and conduct other due diligence requirements prior to bidding.

All information in this brochure or any other information provided by Seller, its advisor, broker and employees has been developed to provide interested buyers with an overview of the property and should not be relied upon by buyers. Seller, its advisor, broker and employees make no represen-tation or warranty as to the accuracy or completeness of any such information, other than those con-tained in an executed Purchase and Sale Agreement. The prospective buyers are responsible, at their sole cost, for verifying to their own satisfaction, the accuracy of maps, timber volumes, environmental issues and other factors and the condition of the property.

ADDITIONAL TRACT INFORMATION:

The tract is zoned Agricultural-10 (A-10) and is comprised of seven tax parcels:

47-59 ±42.22 acres Tax Value from County web site $190,000

47-59A ±196.6 acres Tax Value from County web site $594,800

47-59B ±9.63 acres Tax Value from County web site $52,900

48-11 ±587.8 acres Tax Value from County web site $1,565,400

48-11A ±253.4 acres Tax Value from County web site $667,200

48-11B ±212.04 acres Tax Value from County web site $636,100

48-11C ±108.5 acres Tax Value from County web site $283,500

The tract is currently enrolled in Powhatan County’s “Land Use” program, which provided tax relief for properties managed as timberland. Per Powhatan County Code Section 70-76, this program offers a deferral of a portion of the real estate taxes for qualifying properties. The property taxes paid in 2016 were $5,712, which is calculated based on the “Land Use” value of $450/acre and the tax rate of $0.90 per $100 value, or [(1,410 acres * $450/ac.) /100] * $0.90.

The owners also own adjoining tax parcel 47-67, which is 35 acres and includes a 3,300 square foot brick home built in 1993. This property is also available for purchase, but is not a part of the bid sale process.

Pre-merchantable pine timber stands:

Stand Acres Stand History (Bickford Timber and Land Management)

1 ±145 Harvested 2012. Planted Loblolly pine March, 2013

2 ±175 Harvested 2013. Site prep sprayed 2015. Planted elite Loblolly seedlings (544/acre) March, 2016

3 ±64 Harvested 2015. Planted elite Loblolly seedlings (545 per acre) March, 2016

4 ±139 Harvested 2007. Planted Loblolly pine (484 per acre) March, 2008. Release spray 2009

5 ±200 Harvested 2012. Planted Loblolly pine (544 per acre) March, 2013

6 ±188 Harvested 2008. Planted Loblolly pine (484 per acre) April, 2009

Hunting Lease:The Hobson tract is currently leased to the Yates-Hobson Hunt Club. The term of the lease is until August 31, 2018. The annual payment is $13,050. A copy of the lease is available upon request.

Conservation Easement Potential: Large timberland tracts with development potential are recognized as having great potential for the sale of a conservation easement. The tax credits received offset Federal and State tax pay-ments or can be sold to provide income to the landowner. Both the Virginia Department of Forest-ry and the Virginia Outdoors Foundation provide good opportunities in this area. For more information:

http://www.dof.virginia.gov/land/easement/index.htm or www.virginiaoutdoorsfoundation.org/protect/tax-benefits-of-conservation-easements

BID OPENING AND PROCEDURES

Sealed bids for the tract will be opened at 11:30 a.m., Friday, June 30, 2017, at the AFM office.

American Forest Management, Inc.591-A Southlake BoulevardRichmond, VA, 23236 O: (804) 897-5052 | F: (804) 897-5056

The office is located in the Southport Office Park, south of the intersection of Southlake Boulevard and Trade Road.

All bids should be for the whole tract based on ±1,410 acres being sold. Copies of maps, available plats, and other information delineating the tracts are available online or by request.

Bidders may bring bids to the bid opening provided sealed bids are submitted to the AFM representative prior to commencing the opening of the bids or Bidders may mail or overnight bids to the above AFM address for receipt prior to the bid opening. Bids may be submitted by scan and email (david.anderton@afmforest.com) or facsimile (FAX); however, Bidder should follow any emailed or fax bid with a telephone call to confirm receipt of such bid. AFM will not be responsible for any failure to receive email or fax bids due to electronic, machine or other failure. Telephone bids will be required to complete a written bid sheet or enter into a written contract within one (1) day of the bid opening. Sealed envelopes containing the bid should be marked “BID – Hobson Tract.”

Seller reserves the right to reject any and all bids. All bids must be submitted in writing on the attached BID FORM. Once the bid process has commenced, promptly at 11:30 a.m., no additional bids will be accepted. Seller’s Agent will open all of the bids at the designated time and bids will be evaluated with the Seller. The name of the successful bidder and the accepted offer will be given to all of the Bidders. The owner’s decision to accept or reject bids will be made on or before 5:00 p.m. Monday, July 3, 2017.

All bids will be considered to be legally binding and continuing offers until accepted or rejected by Seller or Seller’s Agent. Successful bidder, so notified by Seller or Seller’s Agent, AFM, shall execute a Real Estate Offer to Purchase and Sale Contract, no later than 5:00 p.m. Friday, July 7, 2017. An earnest money deposit of five percent (5%) will be collected at the contract signing to be applied towards payment on execution of such con-tract, and will be transferred to closing attorney’s escrow account.

In the event of non-compliance by the successful bidder, by not signing the contract within the allotted time or other breach of contract, said Bidder shall have no further interest in or right to purchase the property.

SELLER AND/OR AFM, AS SELLER’S AGENT, WILL NOT BE LIABLE FOR ANY FEES OR COMMISSIONS TO ANY REAL ESTATE BROKER, DEALER, AGENT OR REPRESENTATIVE ON BEHALF OF THE BIDDER AS A RESULT OF THE BIDS OR RESULTING SALE TO THE BIDDER IN CONNECTION WITH THIS OFFERING UNLESS BIDDER HAS PROPERLY REGISTERED HIS “BUYER’S AGENT” WITH AFM PRIOR TO THE BID OPENING AND SAID BIDDER HAS NOT PREVIOUSLY BEEN CONTACTED BY AFM REGARDING THIS BID SALE.

All information is believed to be accurate and substantially correct but no assumption of liability is intended. Nei-ther Seller nor Agent nor representatives warrant the completeness or accuracy of any acreage, or the condition, age, volume or value of land and/or timber. No representations or warranties are expressed or implied as to the Property, its condition or boundaries. Prospective buyers should satisfy themselves as to the accuracy of this information.

GENERAL SALE TERMS AND CONDITIONS

Closing will occur as described in the purchase and sale agreement, but no later than August 31, 2017, and will take place at the designated location.

The terms of the sale are cash at closing.

Real estate taxes and all assessments will be divided on a daily pro rata basis between Buyer(s) and Seller, as of the date of Closing. At Closing, Seller shall deliver to Buyer(s) a general warranty deed conveying fee simple title to the property in the form for recording and subject only to the matters set forth herein. Seller shall pay customary documentary stamp tax and Buyer(s) shall pay all remaining recording costs. Title examination fees and title insurance costs, if any, shall be the responsibility of the Buyer(s). Buyer(s) shall assume all responsibility for rollback property taxes if any.

Acreage information was obtained from available plats and commercial mapping programs and is believed to be accurate, but is not guaranteed by the Seller or Seller’s Agent, AFM. Seller and/or Seller’s Agent, AFM, do not warrant matters of survey.

Roll-back Taxes: Buyer shall be responsible for the payment roll-back taxes, if any, assessed as a result of the sale of the Property disqualifying the land from use eligibility. If the property continues to be eligible for land use assessment, Buyer agrees to make application, at Buyer’s expense, for continuation under land use. If Buyer shall apply the Property or any portion thereof to a use other than agricultural, so as to cause roll-back taxes to be payable pursuant to the laws of the Commonwealth of Virginia, or any county or city therein, then the Buyer shall be solely responsible for payment of all such roll-back taxes, penalties, and interest including but not limited to any such taxes payable for or in reference to tax years or partial years prior to Buyer’s acquisition of title to the Property, and this provision shall survive settlement and the delivery of the deed.

The sale of this property is subject to all applicable Federal, State and County laws, regulations and ordinances and is also subject to all plats, all current, proposed or pending covenants, restrictions, zoning, government re-quirements, roadways, easements, and rights-of-way of record, and to such matters as an accurate survey and inspection of the property would disclose. A copy of the applicable zoning requirements pertaining to the Prop-erty is available upon request. All tracts are being sold in “AS IS” condition.

Requests for showings by AFM personnel and requests for additional information should be directed to:David E. Anderton, Jr. (804) 356-5871 or the AFM Richmond Office (804) 897-5052.

General Kin William County Tract Location: (place map)

BID FORM: HOBSON TRACT

BIDS must be received by 11:30 a.m., Friday, June 30, 2017 at the Richmond Office of AFM, Inc., 591-A Southlake Boulevard, Richmond, VA 23236.

The undersigned bidder hereby agrees to purchase the tract listed below, located in Powhatan County, Virginia, as advertised in the bid prospectus dated May 26, 2017. The undersigned bidder understands the submitted bid is based upon the terms and conditions stated in this prospectus and certifies that bidder received a copy of the bid prospectus and is familiar with and understands the terms and conditions in that document.

If this bid is accepted, the undersigned bidder agrees to execute the Real Estate Offer to Purchase and Sale Contract (copy available upon request) in substantially the form presented. The contract must be executed and delivered to AFM’s Richmond, VA, office by 5:00 p.m. Friday, July 7, 2017.

The undersigned bidder hereby offers to purchase the following tract for the price bid below:

Hobson Tract Bid based on ±1,410 Acres $ _______________________________________

Bid Contingencies:The bid on the above shown tract is contingent upon or subject to the following terms and conditions (if none, please state “none”):

______________________________________________________________________________________

______________________________________________________________________________________

The bid will remain a legally binding and continuing offer until it is accepted or rejected or until 5:00 p.m. Mon-day, July 3, 2017. All bidders will be notified at that time as to the status of the bids. The undersigned bidder hereby acknowledges and agrees that neither AFM nor Sellers will pay any real estate fees or commission in connection with this offering unless the Buyer’s Agent is properly registered prior to the bid opening as described herein.

The undersigned bidder acknowledges that neither Seller nor Agent nor representatives warrant the completeness or accuracy of any acreage, or the condition, age, volume or value of land and/or timber associated with this bid and that no representations or warranties are expressed or implied as to the Property, its condition or bound-aries. This bid is based on the fact that the property is being sold “AS IS” and the bidder(s) has satisfied himself or herself as to the accuracy of this information.

The undersigned bidder agrees that the Seller reserves the right to reject or accept any bid at its sole discretion.

DISCLOSURE OF AGENCY: The undersigned bidder acknowledges receipt of a copy of the agency disclosure form and understands that the agent may represent both the buyer and seller, but only with the full knowledge and written consent of all parties. The bidder understands that David E. Anderton, Jr., Carolyn Mulligan, Alfred E. Schatzki and Charlie J. Kerns, Jr., agents with the firm AFM, Inc. represent the SELLER.

Bidder’s Name: _____________________________________________________________________ (print full name)

Address: _____________________________________________________________________

Telephone Number: _____________________________________________________________________

Bidder’s Signature: _____________________________________________________________________

Required Real Estate Agency Disclosure Statement To Buyers and Sellers

Before you begin working with any real estate agent, you should know whom the agent represents. The purpose of this disclosure is to assure that all parties understand the agency relationship of the real estate agent making this disclosure. If you have any questions regarding the role and responsibilities of the agent, or about any other portion of this statement, please do not hesitate to ask for more information.

IF THE AGENT REPRESENTS THE SELLER (OWNER): The agent becomes the seller’s agent by entering into a listing agreement with the seller. The designated “seller’s agent” principal client (with whom the agent has a contractual relationship), in any and all real estate transactions to which the agent is a part, is the owner of the property (seller). The specific fiduciary duties of the Broker to its principal client include loyalty, obedience, disclosure, confidentiality, reasonable care and diligence, and accountability. The buyer should not tell a listing agent or sub-agent anything the buyer would not want the seller to know, because all information of this type must be disclosed by the agent or sub-agent to the buyer.

HOWEVER; this primary responsibility to the owner (seller) does not relieve the agent of all responsibility to the buyer, and the agent can provide the buyer with information and assistance. In this regard, the agent is obligat-ed by law to treat the buyer honestly and fairly, to present all written offers and counteroffers to the owner promptly, to respond honestly and accurately to questions concerning the property in question, to disclose all material facts the agent knows or reasonably should know about the property in ques-tion, and to offer the property for sale without discrimination.

IF THE AGENT REPRESENTS THE BUYER: The customer has the right to choose a licensed real estate agent to represent them in any real estate transactions, with this agent generally described as “buyer’s agent”. In this case, the agent and all other agents in the same firm owe their fiduciary duties to the buyer, and the buyer should enter into a written contract with that buyer’s agent that clearly establishes the obligations of both parties and specifies how the buyer’s agent will be compensated. A buyer’s agent may assist the seller, but does not represent the seller. A seller should not tell a buyer’s agent anything of a personal or confidential nature that the seller does not want the buyer to know.

IF THE AGENT REPRESENTS BOTH THE SELLER AND THE BUYER AT THE SAME TIME: An agent, either acting directly or through one or more real estate company’s other agents, may not act as an agent for both buyer and seller without the express knowledge and written consent of both buyer and seller.

In the entire above mentioned agency relationships, the firm and its agents will conduct all brokerage activities without respect to the race, color, religion, national origin, handicap or familial status of any party.

The duties of the agent in any real estate transaction do not relieve the seller or buyer from the responsibility to protect their own interest. You should carefully read all agreements to assure that they adequately express your understanding of the transaction. A real estate agent is a person qualified to advise about real estate.

** If legal or tax advice is desired, consult an attorney or competent professional of your choice. **DISCLOSURE OF AGENCY: We acknowledge receipt of a copy of this agency disclosure form and understand that the agent may represent both the buyer and seller, but only with the full knowledge and written consent of all parties. We understand that David E. Anderton, Jr., Carolyn Mulligan, Fred Schatzki and Charles J. Kerns, Jr., agents with the firm American Forest Management, Inc., represent the SELLER with regard to the attached property.

American Forest Management, Inc.591-A Southlake Boulevard

Richmond, Virginia

We’re in this TOGETHER