This deed is made in accordance with provisions of Ordinance No of the City of Los Angeles.

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1 Recording Requested By: City of Los Angeles When recorded mail To: Four Square Senior Living 1902 W. Park Avenue Los Angeles, CA =--=:----:---:::--::--:;:-::::: SPACE ABOVE THIS LINE IS FOR RECORDERS USE _ Doc. Transfer Tax $ 0.00 This is a conveyance of an easement and the consideration and value is less than $100.00, R & T Department of Public Works, Bureau of Engineering QUITCLAIM OF EASEMENT DEED RIW No APN: For a valuable consideration the receipt of which is hereby acknowledged, The CITY OF LOS ANGELES, a municipal corporation, does hereby remise, release and forever quitclaim to: Four Square Senior Living EP, LLC, A California Limited Liability Company, its successors and assigns That certain easement in the City of Los Angeles, County of Los Angeles, State of California, more particularly described as: That certain easement for sewer purposes, 4 feet wide, lying within Lot 12, Echo Park Tract, as per map recorded in Book 3, Page 58, of Maps, in the Office of the County Recorder of Los Angeles County, as described in deed recorded in Book 5713 Page 7, of Deeds, in the Office of the County Recorder of said County, as more particularly described in Attached Exhibits "A" and "B". This deed is made in accordance with provisions of Ordinance No of the City of Los Angeles. IN WITNESS WHEREOF, City of Los Angeles, Municipal Corporation, by its City Council, has caused this Quitclaim Deed to be executed on its behalf, by its Mayor, and its corporate seal to be thereto affixed by its City Clerk, This t'")r( day of Attest: M'1,20 It THE CITY OF LOS ANGELES ---I---'-JJ-F---\, " ~ City Clerk By: _.,::(2==, -",G~===/=;,<0."--0--,.----, Mayor MAY

2 EXHIBIT A LEGAL DESCRIPTION THE NORTHEASTERLY 4 FEET OF LOT 12 OF ECHO PARK TRACT, IN THE CITY OF LOS ANGELES, COUNTY OF LOS ANGELES, STATE OF CALIFORNIA, AS PER MAP RECORDED IN BOOK 3 PAGE 58 OF MAPS IN THE OFFICE OF THE COIINTY RECORDER OF SAID COUNTY. EXCEPT THAT PORTION WITHIN PARK AVENUE AS CONDEMNED BY THE CITY IOF LOS ANGELES FOR THE OPENtN6 AND EXTENDING OF PARK AVENUE BY DECREE IN CASE NO , SUPERIOR COURT AND CONVEYED TO PACIFIC ELECTRIC LAND COMPANY, A CORPORATION, BY DEED DATED OCTOBER 19, 1925 IN BOOK 5518 PAGE 73, OFFICIAL RECORDS.

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4 The City of Los Angeles TO JOB TITLE: Park Ave. at Glendale Blvd. - Quitclaim of Sewer Easement Four Square Senior Living EP, LLC, A California Limited Liability Company QUITCLAIM DEED Executed in Accordance with Ordinance No LEGAL DESCRIPTION By: Yoshiaki Miyamoto LicenseNo I verify that the attached plat depicts the alignment and or configuration requested for this project :::' :..7. BUREAU OF ENGINEERlNG 2od By: y.j. v.~. Division:~.=.~...~..~...~..~...~..===..~...~..~.~..~...~..~.====== Platted: C.M.~===~ ~~~ Approved..~.c:.\ l..~,20 \ \f By: C.M.~.======== STATE OF CALIFORNIA} SS COUNTY OF LOS ANGELES} BY:..W:J...e.r4J~. ~~7~~.. Depu;.;r..~v.v.It COUNCIL FILE NO J before me, fvl_q_,j.--,'i M_o_I'<t_Cc_~,- ---', a notary public personally appeared, E-r; c C"tcetf', (v\",yc,--, who proved to me on the basis of satisfactory evidence to be the person~ whose namejs) is/are subscribed to the within instrument and acknowledged to me that he/spelth:ey executed the same in his/her/their authorized capacity(.ies), and that by his!.her/theirsignature(gton the instrument the personts), or the entity upon behalf of which the person\fo?'acted, executed the instrument. I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing Paragraph is trne and correct. I MANDY MORALES Commission /I WITNESS my hand and official seal. Notary Public, California ~ Los Angeles County _ Comm. Ex ires Au Signatur~~ THIS AREA FOR OFFICIAL NOTARIAL SEAL

5 ORDINANCE NO. An Ordinance authorizing the quitclaim of an easement for sewer purposes lying on Park Avenue at Glendale Boulevard. THE PEOPLE OF THE CITY OF LOS ANGELES DO ORDAIN AS FOLLOWS: Section 1. The Council of the City of Los Angeles hereby finds and determines that certain easement for sewer purposes hereinafter described, lying on Park Avenue at Glendale Boulevard is no longer required for the use of the City, and that the public interest, convenience and necessity require, and said Council orders, the conveyance by quitclaim deed of all the City's right, title and interest in and to said sanitary sewer easement without notice of sale or advertisement for bids, to the person or persons who own the real property at the time of execution of the deed, in severalty, and upon the same tenure as their respective interests appear of record in the office of the County Recorder of Los Angeles County. Sec. 2. The aforesaid sewer easement is located in the City of Los Angeles, County of Los Angeles, State of California, and is more particularly described as follows: That certain easement for sewer purposes, 4 feet wide, lying within Lot 12, Echo Park Tract, as per map recorded in Book 3, Page 58, of Maps, 'in the Office of the County Recorder of Los Angeles County; described in deed recorded in Book 5713, page 7, of Deeds, in the Office of said County Recorder. Excepting therefrom those portions lying westerly of the westerly line of Lot 12, of said Echo Park Tract. Sec. 3. The following is authorized and directed: (a) The Mayor of said City shall execute deeds in duplicate on behalf of said City, forever quitclaiming said easement above-described to the person or persons who own the real property at the time of execution of the deed; (b) The City Clerk shall attest to and affix the City Seal to said quitclaim deeds; and (c) The Real Estate Group of the Bureau of Engineering shall record and deliver said quitclaim deeds to the grantees named therein.

6 Sec. 4. The City Clerk shall certify to the passage of this ordinance and have it published in accordance with Council policy, either in a daily newspaper circulated in the City of Los Angeles or by posting for ten days in three public places in the City of Los Angeles: one copy on the bulletin board located at the Main Street entrance to the Los Angeles City Hall; one copy on the bulletin board located at the Main Street entrance to the Los Angeles City Hall East; and one copy on the bulletin board located at the Temple Street entrance to the Los Angeles County Hall of Records. I hereby certify that the foregoing ordinance was introduced at the meeting of the Council of the City of Los Angeles.MAY 3 j 2013, and was passed at its meeting of.!f1n 07,013 JUNE LAGMAY, City Clerk k~ By ~ ~~~ Deputy Approved JU_N_.2_0_2_01_3 Approved at to Form and Legality Mayor CARMENA. TRUTANICH, City Attorney By---rs:?=" ~~' ' ~KCity Attorney Date: HiJvCA/l I I Z U f 3 File No. -'..:l3=. --,-O=-2-=~c...::....=-U_

7 DECLARATION OF POSTING ORDINANCE I, MARIA VIZCARRA, state as follows: lam, and was at all times hereinafter mentioned, a resident of the State of California, over the age of eighteen years, and a Deputy City Clerk of the City of Los Angeles, California. Ordinance No Authorizing the quitclaim of an easement for sewer purposes lying on Park Avenue at Glendale Boulevard - a copy of which is hereto attached, was finally adopted by the Los Angeles City Council on June 7, 2013, and under the direction of said City Council and the City Clerk, pursuant to Section 251 of the Charter of the City of Los Angeles and Ordinance No , on June I posted a true copy of said ordinance at each of the three public places located in the City of Los Angeles, California, as follows: 1) one copy on the bulletin board located at the Main Street entrance to the Los Angeles City Hall; 2) one copy on the bulletin board located at the Main Street entrance to the Los Angeles City Hall East; 3) one copy on the bulletin board located at the Temple Street entrance to the Los Angeles County Hall of Records. Copies of said ordinance were posted conspicuously beginning on June 21, 2013 and will be continuously posted for ten or more days. I declare under penalty of perjury that the foregoing is true and correct. Signed this 21st day of June, 2013 at Los Angeles, California. ~CUA ~! V~ Maria Vizcarra, Deputy Ci Clerk Ordinance Effective Date: July 31, 2013 Rev. ( ) Council File No

8 Chicago Title Company Commercial/Industrial Division, 700 South Flower, Suite 800 Los Angeles, CA (213) Title Department: Chicago Title Company Attn: Karl Daly Phone: (213) Fax: (213) Order No.: X59 PRELIMINARY REPORT Property Address: 1902 Park Avenue, Los Angeles Dated as of: November 5, 2010 at 7:30 am In response to the application for a policy of title insurance referenced herein, Chicago Title Company hereby reports that it is prepared to issue, or cause to be issued, as of the date hereof, a policy or policies of Title Insurance describing the land and the estate or interest therein hereinafter set forth, insuring against loss which may be sustained by reason of any defect, lien or encumbrance not shown or referred to as an Exception herein or not excluded from coverage pursuant to the printed Schedules, Conditions and Stipulations or Conditions of said Policy forms. The printed Exceptions and Exclusion from the coverage and Limitations on Covered Risks of said Policy or Policies are set forth in Attachment One. The policy to be issued may contain an arbitration clause. When the Amount of Insurance is less than that set forth in the arbitration clause, all arbitrable matters shall be arbitrated at the option of either the Company or the Insured as the exclusive remedy of the parties. Limitations on Covered Risks applicable to the CLTA and ALTA Homeowner's Policies of Title Insurance which establish a Deductible Amount and a Maximum Dollar Limit of Liability for certain coverages are also set forth in Attachment One. Copies of the policy forms should be read. They are available from the office which issued this report. This report (and any supplements or amendments hereto) is issued solely for the purpose of facilitating the issuance of a policy of title insurance and no liability is assumed hereby. If it is desired that liability be assumed prior to the issuance of a policy of title insurance, a Binder or Commitment should be requested. The policy(s) oftitle insurance to be issued hereunder will be policy(s) of Chicago Title Insurance Company Please read the exceptions shown or referred to herein and the exceptions and exclusions set forth in Attachment One of this report carefully. The exceptions and exclusions are meant to provide you with notice of matters which are not covered under the terms of the title insurance policy and should be carefully considered. It is important to note that this preliminary report is not a written representation as to the condition of title and may not list all liens, defects, and encumbrances affecting title to the land. CLTA Preliminary Report Form - Modified ( ) Page I

9 Order No.: l x59 SCHEDULE A 1. The estate or interest in the land hereinafter described or referred to covered by this report is: A Fee 2. Title to said estate or interest at the date hereof is vested in: Four Square Senior Living EP, LLC, a California limited liability company 3. The land referred to in this report is situated in the State of California, County of Los Angeles and is described in the Legal Description, attached hereto: END OF SCHEDULE A elta Prellminary Report Form ~Modified (1IM17"06) Page 2

10 Order No.: l x59 LEGAL DESCRIPTION PARCEL 1: LOT 9 OF ECHO PARK TRACT, IN THE CITY OF LOS ANGELES, COUNTY OF LOS ANGELES, STATE OF CALIFORNIA, AS PER MAP RECORDED IN BOOK 3 PAGE 58 OF MAPS, IN THE OFFICE OF THE COUNTY RECORDER OF SAID COUNTY. EXCEPT THAT PORTION OF SAID LAND LYING EAST OF A LINE EXTENDING FROM A POINT IN FILE NORTHWESTERLY LINE OF SAID LOT 9, DISTANT THEREON FEET NORTHEASTERLY FROM THE MOST WEST CORNER OF SAID LOT TO A POINT IN THE SOUTHWESTERLY LINE OF LOT 10 DISTANT THEREON FEET NORTHWESTERLY FROM THE MOST SOUTHERLY CORNER OF SAID LOT PARCEL 2: LOTS 10 AND 1l OF ECHO PARK TRACT, IN THE CITY OF LOS ANGELES, COUNTY OF LOS ANGELES, STATE OF CALIFORNIA, AS PER MAP RECORDED IN BOOK 3 PAGE 58 OF MAPS, IN THE OFFICE OF THE COUNTY RECORDER OF SAID COUNTY. EXCEPT THOSE PORTIONS OF SAID LAND WIDCH ARE INCLUDED WITHIN THE LINES OF PARK AVENUE, AS IT NOW EXISTS. PARCEL 3: LOT 12 OF ECHO PARK TRACT, IN THE CITY OF LOS ANGELES, COUNTY OF LOS ANGELES, STATE OF CALIFORNIA, AS PER MAP RECORDED IN BOOK 3 PAGE 58 OF MAPS, IN THE OFFICE OF THE COUNTY RECORDER OF SAID COUNTY. EXCEPT THEREFROM THAT PORTION OF SAID LOT 12, DESCRIBED AS FOLLOWS: BEGINNING AT THE MOST EASTERLY CORNE:R OF SAID LOT 12; THENCE SOUTHWESTERLY IN A DIRECT LINE TO THE MOST SOUTHERLY CORNER OF SAID LOT; THENCE NORTHWESTERLY ALONG THE SOUTHWESTERLY LINE OF SAID LOT, FEET TO A POINT; THENCE NORTHWESTERLY IN A DIRECT LINE TO A POINT IN THE NORTHEASTERLY LINE OF SAID LOT, DISTANT THEREON FEET NORTHWESTERLY FROM THE MOST EASTERLY CORNER THEREOF; THENCE SOUTHEASTERLY IN A DIRECT LINE TO THE POINT OF BEGINNING, CONDEMNED BY THE CITY OF LOS ANGELES, FOR THE OPENING AND EXTENDING PARK AVENUE BY DECREE IN CASE NO , SUPERIOR COURT AND CONVEYED TO PACIFIC ELECTRIC LAND COMPANY, A CORPORATION, BY DEED DATED OCTOBER 19, 1925 IN BOOK 5518 PAGE 73, OFFICIAL RECORDS. PARCEL 4: LOT 13 OF ECHO PARK TRACT, IN THE CITY OF LOS ANGELES, COUNTY OF LOS ANGELES, STATE OF CALIFORNIA, AS PER MAP RECORDED IN BOOK 3 PAGE 58 OF MAPS, IN THE OFFICE OF THE COUNTY RECORDER OF SAID COUNTY. CLTA Preliminary Report Form - Modified ( ) Page 3

11 Order No.: I X59 LEGAL DESCRIPTION EXCEPT THOSE PORTIONS OF SAID LAND wnrcn ARE INCLUDED WITHIN THE LINES OF PARK AVENUE, AS IT NOW EXISTS. PARCEL 5: LOT 14 OF ECHO PARK TRACT, IN THE CITY OF LOS ANGELES, COUNTY OF LOS ANGELES, STATE OF CALIFORNIA, AS PER MAP RECORDED IN BOOK 3 PAGE 58 OF MAPS, IN THE OFFICE OF THE COUNTY RECORDER OF SAID COUNTY. EXCEPT THAT PORTION OF SAID LOT 14, DESCRIBED AS FOLLOWS: BEGINNING AT THE MOST EASTERLY CORNER OF LOT 14; THENCE SOUTHWESTERLY IN A DIRECT LINE TO THE MOST SOUTHERLY CORNER OF LOT 14; THENCE NORTHERLY IN A DIRECT LINE TO A POINT IN THE MOST NORTHEASTERLY LINE OF LOT 14, DISTANT THEREON FEET NORTHWESTERLY FROM THE MOST EASTERLY CORNER THEREOF; THENCE SOUTHEASTERLY IN A DIRECT LINE TO THE POINT OF BEGINNING. PARCEL 6: LOT 15 OF ECHO PARK TRACT, IN THE CITY OF LOS ANGELES, COUNTY OF LOS ANGELES, STATE OF CALIFORNIA, AS PER MAP RECORDED IN BOOK 3 PAGE 58 OF MAPS, IN THE OFFICE OF THE COUNTY RECORDER OF SAID COUNTY. PARCEL 7: LOT 16 OF ECHO PARK TRACT, IN THE CITY OF LOS ANGELES, COUNTY OF LOS ANGELES, STATE OF CALIFORNIA, AS PER MAP RECORDED IN BOOK 3 PAGE 58 OF MAPS, IN THE OFFICE OF THE COUNTY RECORDER OF SAID COUNTY. PARCEL 8: THAT PORTION OF LOT 1 OF TRACT NO. 1184, IN THE CITY OF LOS ANGELES, COUNTY OF LOS ANGELES, STATE OF CALIFORNIA, AS PER MAP RECORDED IN BOOK 18 PAGE 3 OF MAPS, IN THE OFFICE OF THE COUNTY RECORDER OF SAID COUNTY, DESCRIBED AS FOLLOWS: BEGINNING AT THE NORTHEAST CORNER OF SAID LOT 1; THENCE NORTH 74 DEGREES 11 MINUTES 38 SECONDS WEST FEET TO A POINT IN THE NORTHERLY LINE THEREOF; THENCE SOUTHERLY IN A DIRECT LINE 61.42, MORE OR LESS, TO A POINT IN THE SOUTHERLY LINE OF SAID LOT, WHICH IS DISTANT FEET WESTERLY FROM THE SOUTHEASTERLY CORNER THEREOF; THENCE EASTERLY ALONG SAID SOUTHERLY LINE FEET TO THE SOUTHEASTERLY CORNER OF SAID LOT; THENCE NORTHERLY ALONG THE EASTERLY LINE OF SAID LOT FEET TO THE POINT OF BEGINNING. elta Preliminary Report Form w Modified (11~17~06) Page 4

12 Order No.: I X59 LEGAL DESCRIPTION PARCEL 9: THAT PORTION OF LOT 1 OF TRACT NO. 1184, IN THE CITY OF LOS ANGELES, COUNTY OF LOS ANGELES, STATE OF CALIFORNIA, AS PER MAP RECORDED IN BOOK 18 PAGE 3 OF MAPS, IN THE OFFICE OF THE COUNTY RECORDER OF SAID COUNTY, DESCRIBED AS FOLLOWS: BEGINNING AT THE SOUTHWEST CORNER OF SAID LOT; THENCE SOUTH 63 DEGREES 06' EAST, ALONG THE SOUTHERLY LINE OF SAID LOT, 42 FEET; THENCE NORTHERLY IN A DIRECT LINE, FEET, MORE OR LESS, TO A POINT IN THE NORTHERLY LINE OF SAID LOT DISTANT NORTH 74 DEGREES 11' 38" WEST FEET, FROM THE NORTHEAST CORNER OF SAID LOT; THENCE NORTH 74 DEGREES 11' 38" WEST FEET TO THE NORTHWEST CORNER OF SAID LOT, BEING A POINT IN A CURVE CONCAVE TO THE EAST, HAVING A RADIUS OF FEET A TANGENT THERETO BEARING SOUTH 11 DEGREES 21' 25" WEST; THENCE SOUTHERLY ALONG SAID CURVE, 54 FEET TO THE POINT OF BEGINNING. PARCEL 10: LOT 2 OF TRACT NO. 1184, IN THE CITY OF LOS ANGELES, COUNTY OF LOS ANGELES, STATE OF CALIFORNIA, AS PER MAP RECORDED IN BOOK 18 PAGE 3 OF MAPS, IN THE OFFICE OF THE COUNTY RECORDER OF SAID COUNTY. END OF LEGAL DESCRIPTION CLTA Preliminary Report Form ~ Modified (11~17"06) Page 5

13 Order No.: I X59 SCHEDULEB At the date hereof, items to be considered and exceptions to coverage in addition to the printed Exceptions and Exclusions in said policy form would be as follows: A. Property taxes, including any personal property taxes and any assessments collected with taxes, for the fiscal year I s Installment: 2 nd Installment: Penalty and Cost: Homeowners Exemption: Code Area: Assessors Parcel Number: $68.15 (Paid) $68.13 $16.81 (Dne after April 10) $None Parcell B. Property taxes, including any personal property taxes and any assessments collected with taxes, for the fiscal year 20 I " Installment: 2 nd Installment: Penalty and Cost: Homeowners Exemption: Code Area: Assessors Parcel Number: $ (Paid) $ $ (Due after April 10) $None Lot 10 of Parcel 2 C. An assessment by the improvement district shown below District: Original Amount: Los Angeles City Series $None shown Lot 10 of Parcel 2 CLTA Preliminary Report Form ~Modified (ll~17-06) Page 6

14 Order No.: I-X59 SCHEDULEB D. Property taxes, including any personal property taxes and any assessments collected with taxes, for the fiscal year II I" Installment: 2"d Installment: Penalty and Cost: Homeowners Exemption: Code Area: Assessors Parcel Numher: $1, (Paid) $1,285.oJ $ (Due after April 10) $None Lot II of Parcel 2 E. Property taxes, including any personal property taxes and any assessments collected with taxes, for the fiscal year 20 I I" Installment:. 2 nd Installment: Penalty and Cost: Homeowners Exemption: Code Area: Assessors Parcel Number: $1, (Paid) $1, $ (Due after April 10) $None Parcel 3 F. Property taxes, including any personal property taxes and any assessments collected with taxes, for the fiscal year 20 I0-20 II I" Installment: 2"dInstallment: Penalty and Cost: Homeowners Exemption: Code Area: Assessors Parcel Number: $1, (Paid) $1, $ (Due after April 10) $None Parcel 4 CLTA Preliminary Report Form ~Modified (11~17 06) Page 7

15 Order No.: X59 SCHEDULER G. Property taxes, including any personal property taxes and any assessments collected with taxes, for the fiscal year I" Installment: 2 nd Installment: Penalty and Cost: Homeowners Exemption: Code Area: Assessors Parcel Number: $ (Paid) $ $ (Due after April 10) $None Parcel 5 H. Property taxes, including any personal property taxes and any assessments collected with taxes, for the fiscal year st Installment: 2 nd Installment: Penalty and Cost: Homeowners Exemption: Code Area: Assessors Parcel Number: $ (Paid) $ $75.07 (Due after April 10) $None Parcel 6 1. Property taxes, including any personal property taxes and any assessments collected with taxes, for the fiscal year st Installment: 2 nd Installment: Penalty and Cost: Homeowners Exemption: Code Area: Assessors Parcel Number: $1, (Paid) $1, $ (Due after April 10) $None Parcel 7 CLTA Preliminary Report Form- Modified ( ) Page 8

16 Order No.: J X59 SCHEDULEB J. Property taxes, including any personal property taxes and any assessments collected with taxes, for the fiscal year " Installment: 2'd Installment: Penalty and Cost: Homeowners Exemption: Code Area: Assessors Parcel Number: $1, (Paid) $1, $ (Due after April 10) $None Parcel 8 K. Property taxes, including any personal property taxes and any assessments collected with taxes, for the fiscal year " Installment: 2 nd Installment: Penalty and Cost: Homeowners Exemption: Code Area: Assessors Parcel Number: $1, (Paid) $1, $ (Due after April 10) $None Parcel 9 L. Property taxes, including any personal property taxes and any assessments collected with taxes, for the fiscal year 20 I0-20 II I" Installment: 2 nd Installment: Penalty and Cost: Homeowners Exemption: Code Area: Assessors Parcel Number: $6, (Paid) $6, $ (Due after April 10) $None Parcel 10 M. The lien of supplemental or escaped assessments of property taxes, if any, made pursuant to the provisions of Part 0.5, Chapter 3.5 or Part 2, Chapter 3, Articles 3 and 4 respectively (commencing with Section 75) of the Revenue and Taxation Code of the State of California as a result of the transfer of title to the vestee named in Schedule A; or as a result of changes in ownership or new construction occurring prior to date of policy. CLTA Preliminary Report Porm ~ Modified ( ) Page 9

17 Order No.: X59 SCHEDULEB 1. An easement for a ditch or canal, as granted to the City of Los Angeles, by deed recorded in Book 62 Page 632 of Deeds, and as reserved by said city, in deed recorded in Book 729 Page 203 of Deeds. All Parcels Reference is hereby made to said document for full particulars. 2. The right of the City of Los Angeles, to raise the water in the present Reservoir No.4, to any height allowed by the present dam, as reserved in said deed recorded in Book 729 Page 203 of Deeds. All Parcels 3. Covenants, conditions and restrictions (but omitting any covenant or restrictions, if any, based upon on race, color, religion, sex, sexual orientation, familial status, marital status, disability, handicap, national origin, ancestry, or source of income, as set forth in applicable state or federal laws, except to the extent that said covenant or restriction is permitted by applicable law) as set forth in the document Recorded: in Book 2525 Page 165 and in Book 3155 Page 68, both of Deeds Note: Section of the government code provides the following: "If this document contains any restriction based on race, color, religion, sex, sexual orientation, familial status, marital status, disability, national origin, source of income as defined in subdivision (p) of Section 12955, or ancestry, that restriction violates state and federal fair housing laws and is void, and may be removed pursuant to section of the Government Code. Lawful restrictions under state and federal law on the age of occupants in senior housing or housing for older persons shall not be construed as restrictions based on familial status." Parcels 1 and 2 4. Covenants, conditions and restrictions (but omitting any covenant or restrictions, if any, based upon on race, color, religion, sex, sexual orientation, familial status, marital status, disability, handicap, national origin, ancestry, or source of income, as set forth in applicable state or federal laws, except to the extent that said covenant or restriction is permitted by applicable law) as set forth in the document Recorded: in Book 1991 Page 71, of Deeds Note: Section of the government code provides the following: "If this document contains any restriction based on race, color, religion, sex, sexual orientation, familial status, marital status, disability, national origin, source of income as defined in subdivision (p) of Section 12955, or ancestry, that restriction violates state and federal fair housing laws and is void, and may be removed pursuant to section of the Government Code. Lawful restrictions under state and federal law on the age of occupants in senior housing or housing for older persons shall not be construed as restrictions based on familial status." Parcels 3, 4, 8, 9 and 10 CLTA Preliminary Report Form ~ Modified ( ) Page 10

18 Order No.: X59 SCHEDULEB 5. An easement for the purpose shown below and rights incidental thereto as set forth in a document. Purpose: construction, resconstruction, inspection, maintenance, operation and repair of sewers Recorded: in Book 5713 Page 7, of Deeds That portion of said land as described in the document attached hereto. Parcel 3 6. A covenant and agreement upon and subject to the terms and conditions therein Executed by: In favor of: Recorded: International Church of the Foursquare Gospel City of Los Angeles October 9,2003 as Instrument No , of Official Records Reference is hereby made to said document for full particulars. Parcel 3 7. A Notice of Building(s), Structure(s), or Premises Placed into the Rent Escrow Account Program (REAP) Recorded: November 14, 2008 as Instrument No , of Official Records Reference is hereby made to said document for full particulars. Parcel 3 8. A covenant and agreement wherein the owners of said land covenant and agree that said land shall be held as one parcel and no portion shall be sold separately, which covenant is expressed to run with the land and be binding upon future owners. Recorded: August 27, 2010 as Instrument No , of Official Records 9. A document subject to all the terms, provisions and conditions therein contained. Entitled: Memorandum Withdrawing Non-Rented Housing Accommodations from the Rental Market Recorded: September 8, 2010 as Instrument No , of Official Records Parcels 3, 7, 8, 9 and 10 CLTA Preliminary Report Form ~ Modified (J ) w Page 11

19 Order No.: I X59 SCHEDULEB 10. A covenant and agreement upon and subject to the terms and conditions therein Recorded: October 14, 2010 as Instrument No , of Official Records Reference is hereby made to said document for full particulars. This covenant and agreement shall run with the land and shall be binding upon any future owners, encumbrances, their successors, heirs or assigns and shall continue in effect until the proper government agency approves its termination. 11. A covenant and agreement upon and subject to the terms and conditions therein Recorded: November 2, 2010 as Instrument No , of Official Records Reference is hereby made to said document for full particulars. This covenant and agreement shall run with the land and shall be binding upon any future owners, encumbrances, their successors, heirs or assigns and shall continue in effect until the proper government agency approves its termination, 12. A Deed of Trust to secure an indebtedness in the amount shown below, and any other obligations secured thereby Amount: Dated: Trustor: Trustee: Beneficiary: Loan No.: Recorded: $12,000, November 1,2010 Four Square Senior Living EP, LLC, a California limited liability company William A Hunt, Jr. Foundation Capital Resources, Inc., a Georgia corporation not shown November 3, 2010 as Instrument No of Official Records. 13. A financing statement filed with the office of the county recorder, showing Debtor: Secured Party: Recorded: Four Square Senior Living EP, LLC Foundation Capital Resources, Inc. November 3, 2010 as Instrument No , of Official Records Reference is hereby made to said document for full particulars. CLTA Preliminary Report Form Modified ( ) Page 12

20 Order No.: l x59 SCHEDULEB 14. A lien for unsecured property taxes for the amount shown and any other amounts due Taxpayer: Amount: Recorded: International Church of the Fo $83.10 November 28, 2006 as Instrument No , of Official Records 15. A lien for unsecured property taxes for the amount shown and any otber amounts due Taxpayer: International Church of the Four Square Gospel dba Luz Del Cielo Foursquare Church Amount: Recorded: $ December 11, 2007 as Instrument No , of Official Records 16. A lien for unsecured property taxes for the amount shown and any other amounts due Taxpayer: Amount: Recorded: International Church of the Fo $ November 30, 2009 as Instrument No , of Official Records 17. A lien for unsecured property taxes for the amount shown and any other amounts due Taxpayer: Amount: Recorded: International Church of the Fo $ November 30, 2009 as Instrument No , of Official Records 18. A lien for unsecured property taxes for the amount shown and any other amounts due Taxpayer: Amount: Recorded: International Church of the $2, August 13, 2010 as Instrument No , of Official Records 19. Water rights, claims or title to water, whether or not disclosed by the public records. 20. Matters which may be disclosed by an inspection andlor by a correct ALTAIACSM Land Title Survey of said land that is satisfactory to this Company, andlor by inquiry of the parties in possession thereof. This office must be notified at least 7 business days prior to the scheduled closing in order to arrange for an inspection of the land; upon completion of this inspection you will be notified of the removal of specific coverage exceptions andlor additional exceptions to coverage. CLTA Preliminary Report Form- Modified ( ) Page 13

21 Order No.: I X59 SCHEDULEB 21. Any rights of parties in possession of said land, based on any unrecorded lease, or leases. This Company will require a full copy of any unrecorded lease, together with all supplements, assignments, and amendments for review. END OF SCHEDULE B elta Preliminary Report Form ~ Modified (11~17~06) Page 14

22 Order No.: X59 INFORMATIONAL NOTES Note No.1: Section , California Insurance Code became effective January I, This legislation regulates the disbursement of funds deposited with any title entity acting in an escrow or sub-escrow capacity. The law requires that all funds be deposited and collected by the title entity's escrow andlor sub-escrow account prior to disbursement of any funds. Some methods of funding may be subject to a holding period, which must expire before any funds may be disbursed. In order to avoid any such delays, all funding should be done via wire transfer. Funds deposited with the Company via wire transfer may be disbursed upon receipt. Funds deposited by cashiers checks, certified checks, and teller's checks is one business day after the day deposited. Other checks may require hold periods from two to five business days after the day deposited, and may delay your closing. The Company may receive benefits from such banks based upon the balances in such accounts. Such benefits will be retained by the Company as part of its compensation for handling such funds. Note No.2: The charge where an order is cancelled after the issuance of the report of title, will be that amount which in the opinion of the Company is proper compensation for tile services rendered or the purpose for which the report is used, but in no event shall said charge be less that the minimum amount required under Section of the Insurance Code of the State of California. If the report cannot be cancelled "no fee" pursuant to the provisions of said Insurance Code, then the minimum cancellation fee shall be that permitted by law. Note No.3: California Revenue and Taxation Code Section 18668, effective January I, 1991, requires that the buyer in all sales of California Real Estate, withhold 3-113% of the total sales price as California State Income Tax, subject to the various provisions of the law as therein contained, and as amended. Note No.4: Wire Transfers In the event your transaction is being escrowed by a Chicago Title office, contact should be made with the office to obtain correct wiring instructions. Failure to do so could result in a delay in the receipt offunds and subsequent closing of your transaction. Chicago Title will disburse by wire-out only collected funds or funds received by confirmed wire-in. The Company's Bank: Bank ABA No.: Accouut Name: Accouut No.: wire-in instructions are: Bank of America 275 Valencia Blvd, 2nd Floor Brea, CA Chicago Title Company, Broadway Plaza Office For Credit To: Chicago Title Company 700 South Flower, Suite 800 Los Angeles, CA Order No.: X59 elta Preliminary Report Form ~Modified (l l ) Page 15

23 Order No.: l x59 INFORMATIONAL NOTES LENDER NOTE: On the DATE yon fund the Loan and WIRE Fuuds to Chicago Title and reference the above Order Nnmber, you must send written NOTICE to the Title Officer's Unit by messenger or that yon seut the Funds. Chicago Title will send an acknowledging receipt of the funds as soon as practicable. Chicago Title will NOT be responsible for any delay in Closing and Recording the transaction, nor will Chicago Title be liable for any claim of lost Interest nnless snch written Notice is sent the day of Fundiug aud Chicago Title has acknowledged receipt of funds. Note No.5: Your application for title insurance was placed by reference to a street address or assessor's parcel number. Based upou our records, we believe that the description in this report covers the parcel that you requested. To prevent errors, we require written confirmation that the legal description contained herein covers the parcel that you requested. Note No.6: The plat, (map), which is attached to this report, is to assist you in locating land with reference to streets and other parcels. While this plat is believed to be correct, the Company assumes no liability for any loss occurring by reason of reliance thereon. Note No.7: The policy of title insurance will include an arbitration provision. The Company or the insured may demand arbitration. Arbitrable matters may include, but are not limited to, any controversy or claim between the Company and the insured arising out of or relating to this policy, any service of the Company in connection with its issuance or the breach of a policy provision or other obligation. Please ask your escrow or title officer for a sample copy of the policy to be issued if you wish to review the arbitratiou provisions and any other provisions pertaining to your Title Insurance coverage. Note No.8: The policy to be issued may contain an arbitration clause. When the Amount of Insurance is less than the amount, if any, set forth in the arbitration clause, all arbitrable matters shall be arbitrated at the option of either the Company or the Insured as the exclusive remedy of the parties. elta Preliminary Report Form - Modified ( ) Page 16

24 Order No.: X59 INFORMATIONAL NOTES Note No.9: This Company will require for review the following documents from the following Limited Liability Company: Four Square Senior Living EP, LLC A. A copy of its Operating Agreement and any and all amendments, supplements and/or modifications thereto, certified by the appropriate manager. B. Confirmation that its Articles of Organization (LLC-I), and Certificate of Amendment (LLC-2), any restated Articles of Organization (LLC-I0) and/or any Certificate of Correction (LLC-ll) have been filed with the Secretary of State. C. If the Limited Liability Company is member-managed a full and complete list of members certified by the appropriate manager. D. If the Limited Liability Company was formed in a foreign jurisdiction, evidence, satisfactory to the Company, that it was validly formed, is in good standing and authorized to do business in the state of origin. E. If the Limited Liability Company was formed in a foreign jurisdiction, evidence satisfactory to the Company, that it has complied with California "doing business" laws, if applicable. Note No. 10: Important notice regarding documents to be recorded in the Los Angeles County. Please review the following CRITICAL MESSAGE from the Los Angeles County Recorder's Office as it will likely impact your closing: SUBJECT: ACCEPTANCE OF NOTARY ACKNOWLEDGEMENTS Effective May I, 2008, the Los Angeles Registrar-Recorder/County Clerk's Office will work diligently to be more efficient in examining notary acknowledgements as our part in minimizing notary fraud. In our efforts, we will strictly adhere to the following requirements for accepting Notary Acknowledgments/Certificates: Notaries must comply with the requirements set forth by the state where the oath is administered. Notary Acknowledgments/Certificates may not contain white-out, corrective tape, arrows and/or asterisks. Notary Acknowledgments/Certificates completed by a California Notary that are destined for recording in the County of Los Angeles must be presented exactly in the form prescribed by Civil Code Section I I 89(a)(1). A Notary Acknowledgment/Certificate that does not meet existing state requirements in addition to the requirements set forth above may not be re-submitted after it has been rejected by the Recorder. A new Notary Acknowledgment/Certificate will be required when re-submitting a rejected document. If you have any questions, please contact the Registrar-Recorder/County Clerk at (562) CLTA Preliminary Report Form ~Modified ( ) Page 17

25 Order No.: X59 INFORMATIONAL NOTES CLTA Preliminary Report Form - Modified ( ) Page 18

26 Order No.: l x59 INFORMATIONAL NOTES ATTACHMENT ONE PRIVACY STATEMENT IMPORTANT INFORMATION: For those of you receiviug this report by electronic delivery the Privacy Statement and Attachment One are linked to this report. Please review this information by selecting the link. For those of you who are receiving a hard copy of this report, a copy of this information has been snbmitted for your review. CLTA Preliminary Report Form - Modified (I ) Page 19

27 Order No.: l x59 INFORMATIONAL NOTES NOTICE You may be entitled to receive a $20.00 discount on escrow services if you purchased, sold or refinanced residential property in California between May 19, 1995 and November 1,2002. If you had more than one qualifying transaction, you may be entitled to multiple discounts. If your previous transaction involved the same property that is the subject of your current transaction, you do not have to do anything; the Company will provide the discount, provided you are paying for escrow or title services in this transaction. If your previous transaction involved property different from the property that is subject of your current transaction, you must - prior to the close of the current transaction - inform the Company of the earlier transaction, provide the address of the property involved in the previous transaction, and the date or approximate date that the escrow closed to be eligible for the discount. Unless you inform the Company of the prior transaction on property that is not the subject of this transaction, the Company has no obligation to conduct an investigation to determine if you qualify for a discount. If you provide the Company information concerning a prior transaction, the Company is required to determine if you qualify for a discount which.is subject to other terms and conditions. CLTA Preliminary Report Form ~Modified ( ) Page 20

28 '<,

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