Leslie, Jodi and Chris

January 5, 2012

I have been giving the Red Bank property a lot of thought in regards to value and marketing. The property is actually somewhat isolated with the present access not being of record, according to Placer Title. There is a1/2 interest in a 40 foot strip of land for road purposes that goes from Paskenta road to your property. This strip of land is south of the improvements that Bob Stayer developed on his property. Presently, of course your access has been on the road that Bob Stayer uses to access his property and improvements, Placer Tile could not find where this access was of record for your use. Another major factor in valuing your property is the availability of electrical power. Some of the soil types would be suitable for various crops if there was irrigation available. With the lack of electrical power the land suitable for farming would be limited to some dryland grain crops. Diesel powered pumps are very costly and require engines that meet all the air pollution standards and could be an option for irrigation without electricity. Due to various constraints regarding the property I have had a lot to consider when using various comparable sales that were not subject to such constraints. I have taken into consideration various range land sales that are in the $800 to $900 per acre range and have given added value to the land that is suitable for farming. I have given consideration to a lot of different comparables. The most weight was given to a 1732 acre property that is about mile from your southeast corner. This property closed escrow on 04/18/2011 and sold for $990 per acre. This property fronts on 3 county roads and has services available. The property has similar soil types but a larger percentage of poorer soil type in relationship to your property. The owners of this property have prepared the land of the poorer soil for what I suspect to be a dryland grain crop. The area of your property with this poorer soil is very mounded with many areas that I would suspect would be considered vernal pools and would not be conducive to farming. Therefore, I would consider this soil type on your property only for grazing. The areas with soil that I think could have some farming potential are located on the northern portion of your property. Using the USDA/NRCS soils program I have come up with rough acreage for the land I think may be suitable for farming and the remainder being considered grazing land. I have taken into consideration the constraints above and formulated separate prices for the farming and grazing land. Approximately 270 acres grazing @ $700 per acre = $ 189,000 Approximately 170 acres farmable@ $1800 per acre = $ 306,000 TOTAL = $ 495,000 Using the acreage of 441 acres per the Assessor, the average per acre would be $1122. I would suggest listing the property at $550,000. Please note this is not an appraisal but my professional opinion of value using comparable sales and many years of experience. Value determination with the constraints mentioned are difficult, the market will usually dictate actual value. I would appreciate a listing for one year if possible. Property like this can often take awhile to sell. Commission is typically 6% on the sales price which would

be split between the listing side and the selling side. There will be more discovery involved after a listing is in place. I will have to meet with the neighbor Bob Stayer and see if he would grant an easement that would be insurable using the present access or if he would force the development of a road using the 40 ft strip. I will also contact PG&E and see if there is any possible way to provide power to the property with present conditions. Regarding the issue with Harold Miller and his option to purchase the listing takes a very uncommon twist. If you grant me the listing I will be spending time effort and money on trying to merchandise the property. I feel that if Harold was able to put a deal together to purchase the property it more likely would have resulted from activity generated threw the property being listed. After conversation with Leslie on this issue it seems fair that if Harold Miller did purchase the property a 3% commission would be due to Round Up Realty.

Respectfully, Larry Lalaguna