Allison Valley Metropolitan Districts Nos. 1 & 2

The AVMD has the power and authority to impose a mill levy and collect a property tax from all property owners within the AVMD to repay the debt incurred to acquire and construct such public improvements. The mill levy and the amount of the taxes imposed will be determined annually in accordance with law and will appear on and be part of Purchaser’s annual real property tax bill. All homes constructed within The Farm are subject to mill levy and taxes of the AVMD. The mill levy of the AVMD will not exceed a total of 40 mills (with a maximum of 30 mills for debt service and 10 mills for operations and maintenance) in any year; provided that if, on or after January 1, 2006, there are changes in the method of calculating assessed valuation or any constitutionally mandated tax credit, cut or abatement, the debt service mill levy may be increased or decreased to reflect such changes and otherwise as provided in the AVMD Service Plan. The mill levy currently imposed by the AVMD is 40 mills. The debt service mill levy shall not be imposed in excess of 40 years after the year of the initial imposition of the mill levy unless (1) a majority of the Board of Directors of the District imposing the mill levy are residents of such District and (2) such Board has voted in favor of issuing debt with a term which requires or contemplates the imposition of a debt service mill levy for a longer period of time than the limitation contained herein. AVDC makes no other warranties or representations concerning the size of the mill levy or the amount of the taxes imposed by the AVMD. The AVMD also has the authority to assess fees, rates, tolls, penalties or charges as provided by the Special District Act or other state statutes. The AVMD is not allowed to impose a sales tax. Purchaser acknowledges receipt of AVMD’s Notice of Special District.