Howard J. Kaplan and Brenda L. Kaplan, et al. - Page 14

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          Construction completed all of the work that it agreed to perform            
          under the two March 4, 1998 construction contracts, including               
          construction of the new building on KQC’s land.                             
               On May 15, 1998, a document entitled “NOTICE OF FEDERAL                
          INTEREST” (notice of Federal interest) with respect to the                  
          improved property on Maple Street was filed with the Recorder’s             
          office, Sandusky County, Ohio (Sandusky County recorder’s of-               
          fice).  As of May 12, 2005, the notice of Federal interest had              
          not been canceled.  The notice of Federal interest provided in              
          pertinent part:                                                             
               This is to serve notice to all potential sellers,                      
               purchasers, transferors and recipients of a transfer of                
               the real property described below as to the Federal                    
               government’s revisionary interests as set forth in 45                  
               CFR Part 92, (or if appropriate, 45 CFR Part 74) which                 
               have arisen as a result of (Texas Migrant council, Inc.                
               Ohio Region) receipt and use of Department of Health                   
               and Human Service’s grant funds in connection with the                 
               purchase of said property.  The property to which this                 
               notice is applicable is (Helena Migrant Head Start                     
               Center  474 Maple St.  Helena, Ohio 43435) and identi-                 
               fied Parcel (See Attached Legal Description)[4] in the                 
               books and records of Sandusky County Ohio. * * *  In                   
               accordance with 45 CFR 92.11 (or, if appropriate, 45                   
               CFR 74.134), this property may not be sold, trans-                     
               ferred, or its title encumbered, without approval from                 
               the Department of Health and Human Services. * * *                     
               [Reproduced literally.]                                                
               By letter dated November 8, 1999, KQC asked Richard W.                 
          Mumford (Mr. Mumford) to make a preliminary real estate appraisal           


               4The document “Attached Legal Description” referred to in              
          the notice of Federal interest is a copy of the April 18, 1997              
          general warranty deed.                                                      





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