NATURAL HAZARD DISCLOSURE STATEMENT AND ADDITIONAL REPORTS

"The" Disclosure Report Platinum - NHD + tice of Special Tax Assessment Report + Environmental Report NATURAL HAZARD DISCLOSURE STATEMENT AND ADDITIONAL REPORTS PERSON/ENTITY MAKING REQUEST 4550 Kearny Villa Rd Suite 210 San Diego CA, 92123 DATE OF ISSUANCE 07/31/2012 ORDER NUMBER 1629719 ADDRESS/SUBJECT OF DISCLOSURE REPORT montauk St RECIPIENT OF DISCLOSURE REPORT Seller Buyer ASSESSOR S PARCEL NUMBER ESCROW NUMBER Seller Agent Buyer Agent This NHD statement and report is prepared based on information provided by public agencies, in compliance with California Civil Code Section 1103.4, AB920 and thus provides for legal exemption from liability to the transferor and listing agent for any error in this information provided that ordinary care is exercised in transmitting the statement and report. Disclaimer: Disclosure Reports L.L.C. has no obligation to advise any persons, including the recipient, of any change in relevant facts, conditions, or circumstances that occur after Date of Report. Please also be aware, only fully paid Reports are considered valid. Prices Subject to change without notice. Thank You, Disclosure Reports L.L.C. Don t forget the Home Warranty. Call 1-800-831-8200 Or visit hiscohw.com 1

Current Owner: Solomon Properties Flp The transferor and his or her agent(s) disclose the following information with the knowledge that even though this is not a warranty, prospective transferees may rely on this information in deciding whether and on what terms to purchase the subject property. Transferor hereby authorizes any agent(s) representing any principal(s) in this action to provide a copy of this statement to any person or entity in connection with any actual or anticipated sale of the property. The following are representations made by the transferor and his or her agent(s) based on their knowledge and maps drawn by the state and federal governments. This information is a disclosure and is not intended to be part of any contract between the transferee and transferor. THIS REAL PROPERTY LIES WITHIN THE FOLLOWING HAZARDOUS AREA(S): A SPECIAL FLOOD HAZARD AREA (Any type Zone "A" or "V") designated by the Federal Emergency Management Agency. Yes X Do not know and information not available from local jurisdiction AN AREA OF POTENTIAL FLOODING shown on a dam failure inundation map pursuant to Section 8589.5 of the Government Code. Yes X Do not know and information not available from local jurisdiction A VERY HIGH FIRE HAZARD SEVERITY ZONE pursuant to Section 51178 or 51179 of the Government Code. The owner of this property is subject to the maintenance requirements of Section 51182 of the Government Code. X Yes A WILDLAND AREA THAT MAY CONTAIN SUBSTANTIAL FOREST FIRE RISKS AND HAZARDS pursuant to Section 4125 of the Public Resources Code. The owner of this property is subject to the maintenance requirements of Section 4291 of the Public Resources Code. Additionally, it is not the state's responsibility to provide fire protection services to any building or structure located within the wildlands unless the Department of Forestry and Fire Protection has entered into a cooperative agreement with a local agency for those purposes pursuant to Section 4142 of the Public Resources Code. X Yes AN EARTHQUAKE FAULT ZONE pursuant to Section 2622 of the Public Resources Code. X Yes A SEISMIC HAZARD ZONE pursuant to Section 2696 of the Public Resources Code. X Yes (Landslide Zone) Yes (Liquefaction Zone) Map not yet released by state THESE HAZARDS MAY LIMIT YOUR ABILITY TO DEVELOP THE REAL PROPERTY, TO OBTAIN INSURANCE, OR TO RECEIVE ASSISTANCE AFTER A DISASTER. THE MAPS ON WHICH THESE DISCLOSURES ARE BASED ESTIMATE WHERE NATURAL HAZARDS EXIST. THEY ARE NOT DEFINITIVE INDICATORS OF WHETHER OR NOT A PROPERTY WILL BE AFFECTED BY A NATURAL DISASTER. TRANSFEREE(S) AND TRANSFEROR(S) MAY WISH TO OBTAIN PROFESSIONAL ADVICE REGARDING THOSE HAZARDS AND OTHER HAZARDS THAT MAY AFFECT THE PROPERTY. SIGNATURE OF TRANSFEROR(S) _ Date_ SIGNATURE OF TRANSFEROR(S) _ Date_ SIGNATURE OF AGENT(S) _ Date_ SIGNATURE OF AGENT(S) _ Date_ Check only one of the following: Transferor(s) and their agent(s) represent that the information herein is true and correct to the best of their knowledge as of the date signed by the transferor(s) and agent(s). Transferor(s) and their agent(s) acknowledge that they have exercised good faith in the selection of a third-party report provider as required in Civil Code Section 1103.7, and that the representations made in this Natural Hazard Disclosure Statement are based on information provided by the independent third-party disclosure provider as a substituted disclosure pursuant to Civil Code Section 1103.4. Neither transferor(s) nor their agent(s) (1) has independently verified the information contained in this statement and report or (2) is personally aware of any errors or inaccuracies in the information contained on the statement. This statement was Prepared by the Provider Below: Third-Party Disclosure Provider(s): Disclosure Reports, LLC Transferee represents that he or she has read and understands this document. Pursuant to Civil Code Section 1103.8, the representations made in this Natural Hazard Disclosure Statement do not constitute all of the transferor s or agent s disclosure obligations in the transaction. I have received a copy of the booklet from the Broker(s) in this transaction: Combined Hazards Book a combination Residential Environmental Hazards: A Guide for Homeowners, Homebuyers, Landlords and Tenants including toxic mold, Protect Your Family From Lead in Your Home and The Homeowner s Guide to Earthquake Safety - includes Natural Gas Safety. I hereby acknowledge the receipt of all information identified on page 3 and 4 of this report. SIGNATURE OF TRANSFEREE Date _ SIGNATURE OF TRANSFEREE Date _ 2

Current Owner: Solomon Properties Flp The items listed below are additional Natural Hazard Disclosures and Advisories that may be provided in the report Local Jurisdiction Hazards- (depending on county) Active Fault, Airport ise Contour, Airport, Alquist Priolo Earthquake Fault Zones, Coastal Bluffs, Compressible Soils, Dam Inundation, Expansive soils, FEMA Flood Zones, Fire Hazard Severity Zones, Fire History, Fire Protection Responsibility Area, Flight Safety Corridor, Flood Prone Urban Area, Groundwater, Landslide, Levee, Liquefaction, Long Term ise, Major River, Naturally Occurring Asbestos, Potential Avalanche Hazard Area, Rockfall Debris Flow, Seismic Shaking, Seismic Surface Bearing, Pressure Area, Serpentine Rock, Slide zone formation, Slope Stability, Snow Avalanche Hazard Overlay, Snowload Area, Special Fire Protection Area, State Responsibility Areas SRA, Subsidence, Tsunami Run Up zone, Very High Hazard Severity Zone, Water Body, Waterway, Wildfire Rating Zone, Wildland Urban Interface Additional Statutory DisclosuresIndustrial Use Zone, Airport Influence Area, Radon Zone, Former Military Ordnance Site, California Right to Farm: California Abandoned & Active Mines, Energy Efficiency Standards & Duct Sealing Requirements, Protected Species-Habitat Area, California Fire Wild land Fire Prevention Supplement, Mello-Roos and Special Assessment Industrial Use Zone- California Civil Code 1102.17 The seller of residential real property subject to this article who has actual knowledge that the property is affected by or zoned to allow an industrial use described in Section 731a (Refer to bottom of page) of the Code of Civil Procedure shall give written notice of that knowledge as soon as practicable before transfer of title. _YES, the seller DOES have actual knowledge that the property is affected by or is in an industrial use zone. _NO, the seller DOES NOT have actual knowledge that the property is affected by or is in an industrial use zone. 731a. Whenever any city, city and county, or county shall have established zones or districts under authority of law wherein certain manufacturing or commercial or airport uses are expressly permitted, except in an action to abate a public nuisance brought in the name of the people of the State of California, no person or persons, firm or corporation shall be enjoined or restrained by the injunctive process from the reasonable and necessary operation in any such industrial or commercial zone or airport of any use expressly permitted therein, nor shall such use be deemed a nuisance without evidence of the employment of unnecessary and injurious methods of operation. thing in this act shall be deemed to apply to the regulation and working hours of canneries, fertilizing plants, refineries and other similar establishments whose operation produce offensive odors. Supplements/tices Megan s Law: California Civil Code 2079.10a, Mold: California Senate Bill 732, Methamphetamine Contaminated Property: Methamphetamine Contaminated Property Clean Up Act 2005, tice of Supplemental Property Tax: California Civil Code 1102.6(c) Environment Concerns Final National Priorities List Sites (NPL), EnviroStor (Envirostor), Leaking Underground Storage Tanks Cleanup Sites ( LUST), Solid Waste Information System (SWIS) Tax Supplemental Tax Disclosure Booklets Residential Environmental Hazard Guide, Protect Your Family from Lead In Home Guide, Homeowners Guide to Earthquake Safety, Home Energy Rating, Full Homeowner Guide, Commercial Property Owner s Guide to Earthquake Safety, and Mold Remediation in Schools and Commercial Buildings Terms and conditions This Natural Hazard Disclosure report is for the use of the transactional parties and their agents. It is valid for these parties and this transaction only. The report is (1) based on known and available information published by selected government agencies for public use at the time this report was prepared; (2) invalid if the escrow number in this report does not match the escrow number of the transaction for which it was issued; and (3) covered by our professional Liability Insurance Policy which indemnifies the above parties for damages caused by our negligent acts, errors or omissions in the performance of our services. The tax portion of the report is provided by California Tax Data, Inc. who is solely responsible for the accuracy and timeliness of that data. The disclosure Company is not responsible for incomplete, out of date, or inaccurate information supplied by government agencies. liability is assumed until the disclosure Company is paid in full. NOTE: In preparing this report, the disclosure Company has relied upon the statutes identified and has reviewed the maps and records specifically referred to in each Disclosure Determination. These are available to the public as Government Records to make the determinations if and to what extent each statute applies to the Subject Property. Receipt or use of this report by recipient or any third party constitutes acceptance of the terms and conditions detailed at end of this document. Please read these terms and conditions carefully. This report is not a warranty. This report is not a policy of insurance. This report is prepared by the disclosure Company to comply with California statutory disclosure law relating to public record information in connection with the sale of residential real estate. Recipient is cautioned and warned that no on site inspection is performed by the disclosure Company in preparing the report 3

Property Address: Current Owner: montauk St Solomon Properties Flp Order Number: 1629719 Determinations, Advisories and Table of Contents In State Level Determinations Special Flood Hazard Zone (FEMA) Section 8589.3 of the California Government Code Area of Potential Flooding Due to Dam Inundation Section 8589.4 of the California Government Code Very High Fire Hazard Severity Zone Section 51183.5 of the California Government Code Wildland Area That May Contain Substantial Forest Fire Risks and Hazards Section 4136 of the California Public resource Code Earthquake Fault Zone Section 2121 of the California Public Resource Code Seismic Hazard Zone Section 2694 of the California Public Resource Code A) Landslide Zone B) Liquefaction Zone Out t Mapped N/A Page 5 5 5 6 6 A B 7 County Level Determinations 8 Local Hazard Disclosure Statement Association of Bay Area Governments Local Hazard Disclosure Statement N/A San Francisco Bay Conservation And Development Commission Jurisdiction N/A Additional Statutory Disclosures 13 Airport Influence Area Disclosure Statement 14 Radon Disclosure Hazard Disclosure Statement 15 Former Military Ordnance Site Disclosure Supplement California Right To Farm Disclosure Statement 17 Calfornia Fire Wildland Fire Prevention Supplement 19 21 California Abandoned & Active Mines 22 Energy Efficiency Standards & Duct Sealing Requirements Protected Species-Habitat Area 24 Williamson Act 25 California Tsunami Inundation Disclosure Statement 26 California Coastal Protection Zones Disclosure Statement 27 Supplements and tices Megan's Law & Carbon Monoxide tices tice 28 Mold Supplement tice 30 Methamphetamine Contaminated Supplement tice 31 tice of Supplemental Property Tax Bill tice 32 33 Terms And Conditions Tax 36 Supplemental Tax Disclosure (Gold And Platinum Only) Enviromental Environmental Concerns (Platinum Only) 46 4

Current Owner: Solomon Properties Flp Order Number: 1629719 State Level Determinations FEMA DESIGNATED SPECIAL FLOOD HAZARD AREA DISCUSSION: Pursuant to Section 1103 of the California Civil Code, this determination by the disclosure Company is based on a review of maps including the Flood Insurance Rate Maps published by the Director of the Federal Emergency Management Agency. The Federal Emergency Management Agency (FEMA) is the federal agency with the responsibility to produce Flood Insurance Rate Maps. These maps are used to determine whether structures, such as private residences are contained within designated Special Flood Hazard Areas. This information is then used to determine the need for obtaining flood insurance through the National Flood Insurance Program and also for floodplain management purposes. The fact that a structure lies with a designated Special Flood Hazard Area does not guarantee that it will necessarily flood; nor does the fact that a structure lies outside a flood zone guarantee that it will not flood. For more information about flood zones, please contact your local FEMA Regional Office or access this department's Internet address through the World Wide Web at http://www.fema.gov/. AN AREA OF POTENTIAL FLOODING DUE TO DAM INUNDATION DISCUSSION: Pursuant to Section 1103 of the California Civil Code and Section 8589.5 of the California Government Code, this determination by the disclosure Company is based on a review of inundation maps showing areas of potential flooding in the event of sudden or total failure of any dam. Section 8589.5 of the California Government Code requires that inundation maps be prepared for certain dams and debris basins. Should there be a catastrophic breakdown of a basin or dam during peak capacity, the dam inundation maps indicate the areas that could potentially be inundated by this breakdown. Potential causes of catastrophic breakdowns include heavy rainfall, watershed runoff, foundation failure, earthquakes, etc. t all California dams have dam inundation maps associated with them, so there may be circumstances where specialized consultants may need to be consulted for detailed analyses. Maps approved pursuant to section 8589.5 of the California Government Code are kept on file with the Department of Water Resources and the Office of Emergency Services. For more information, please contact the California Office of Emergency Services in Sacramento or access this department's Internet address, http://www.oes.ca.gov/. VERY HIGH FIRE HAZARD SEVERITY ZONE DISCUSSION: Pursuant to Section 1103 of the California Civil Code and Section 51183.5 of the California Government Code, this determination by the disclosure Company is based on a review of maps issued by the Director of Forestry and Fire Protection for the State of California Section 51178 of the California Government Code requires that the California Director of Forestry and Fire Protection identify and prepare maps showing certain Very High Fire Hazard Severity Zones. Placement within these zones is based on criteria that includes, but is not limited to, structure density, weather, topography, fuels, and other relevant considerations. Buyers are subject to fines for failing to provide for proper brush clearance and other preventive measures in these zones. For more information, please contact the California Department of Forestry and Fire Protection in Sacramento or access this department's Internet address access the World Wide Web at, http://www.fire.ca.gov/. 5

Property Address: Current Owner: montauk St Solomon Properties Flp Order Number: 1629719 WILDLAND AREA THAT MAY CONTAIN SUBSTANTIONAL FOREST FIRE RISKS AND HAZARDS DISCUSSION: Pursuant to Section 1103 of the California Civil Code, Sections 4102, 4125, 4136 of the California Public Resources Code, and Section 13811 of the Health and Safety Code, this determination by the disclosure Company is based on a review of maps including those issued by the Director of Forestry and Fire Protection for the State of California Section 4125 of the California Public Resources Code requires that the California Director of Forestry and Fire Protection identify and prepare maps showing certain State Responsibility Areas that designate wildland areas that may contain substantial forest fire risks and hazards. These State Responsibility Areas are subject to the requirements of Section 4291 of the California Public Resources Code governing any person who own, controls, operates leases, or maintains a building or structure in a designated area in reference to firebreaks, trimming of trees, installation of chimney screens and regulation of these matters by the State Forester. In the exercise of its responsibility for identifying State Responsibility Areas, the California Department of Forestry and Fire Protection is also responsible for identifying lands outside of cities and federal lands for which the state takes primary financial responsibility for protecting natural resources from fire damage. These designated locations are determined in part on vegetation and other natural resource characteristics within the area. Public Resources Code Section 4291 imposes a duty on the seller of real property to disclose whether the property is within a State Responsibility Area and that the buyer must take specific fire mitigation measures to be in compliance with California law. For more information, please contact the California Department of Forestry and Fire Protection in Sacramento or access this department's Internet address through the World Wide Web at, http://www.fire.ca.gov/. EARTHQUAKE FAULT ZONE DISCUSSION: Pursuant to Section 1103 of the California Civil Code and Sections 2621.9 and 2622 of the California Public Resources Code, this determination by the disclosure Company is based on a review of maps issued by the Division of Mines and Geology of the Department of Conservation. The California State Geologist has the responsibility for mapping earthquake fault zones. Fault zones lie on either side of known faults and are generally a quarter mile or less in width. Faults can be categorized as active or inactive and are subject to continual revision as new findings dictate. Just as with FEMA flood zones, lying outside of the fault zone boundary does not ensure that there is no danger from earthquake-generated ground shaking, but it is presumed that there is a greater statistical danger within the zone. More information may be obtained from the California Department of Conservation, Division of Mines and Geology through their nearest office or through the world wide web address, http://www.consrv.ca.gov/. For more information, please contact the California Office of Emergency Services in Sacramento or access this department's Internet address through the World Wide Web at, http://www.oes.ca.gov/. 6

Property Address: Current Owner: montauk St Solomon Properties Flp Order Number: 1629719 SEISMIC HAZARD ZONE DISCUSSION: Pursuant to Section 1103 of the California Civil Code, Sections 2621.9, 2622, and 2296 of the California Public Resources Code, this determination by the disclosure Company is based on a review of maps issued by the Division of Mines and Geology of the Department of Conservation, The California State Geologist and the Division of Mines and Geology of the Department of Conservation, have the responsibility for mapping seismic hazard zones and must identify areas of potential danger to the public from ground failure caused by earthquake ground shaking. These dangers include landslides and liquefaction (liquefaction refers to the earth taking on a fluid consistency under conditions of prolonged shaking). More information may be obtained from the California Department of Conservation, Division of Mines and Geology through their nearest office or access this department's Internet address through the World Wide Web at, http://www.consrv.ca.gov/. 7

Current Owner: Solomon Properties Flp Local Hazard Disclosure Statement This real property lies within the following LOCAL Disclosure Area(s): Dam Inundation (te 3) Agua Tibia Dam Inundation Barrett Dam Blossom Valley Reservoir Calavera Dam Chet Harritt Dam Chollas Dam Cuyamaca Dam Dixon Dam El Capitan Dam Grossmont Dam Henshaw Dam Lake Hodges Dam Lake Loveland Dam Lake Skinner Dam Lake Wohlford Dam Lower Stehly Dam Mahr Reservoir Miramar Dam Morena Overtopping Barrett Mt Isreal Dam Murray Dam Otay Dam Paloverde Dam Pechstein Dam Poway Dam Red Mountain Reservoir Rodriguez Reservoir Romona Dam San Dieguito Dam San Marcos 848 San Marcos 854 San Vicente Dam Skinner Finishes Water Reservoir Squires Dam & Reservoir Sutherland Dam Sutherland Overtopping Hodges Sweetwater Dam Turner Dam Upper Stehly Dam Vail Dam Earthquake Faults (te 1) Fault, Inferred fault, Concealed fault, Shear Zone Alquist Priolo Geological Hazard (te 2) Active fault zone(11) Downtown fault zone(13) Confirmed landslides(21) Possible landslides(22) Friars neutral slide prone formation((23) Friars slide prone formation(24) Ardath neutral slide prone formation(25) Ardath unfavorable slide prone formation(26) Otay sweetwater slide prone formation(27) High potential liquefaction(31) Low potential liquefaction(32) Generally unstable coastal bluffs(41, 42, 43) Moderately stable coastal bluffs(44, 45, 46) Generally stable coastal bluffs(47, 48) Level mesas(51) Other level areas(52) Level or sloping(53) Steeply sloping(54) Aquifers (te 4) Alluvial River Valley & Basins WITH Alluvial River Valley & Basins WITH OUT Fractured Crystalline Rock Coastal Marine and n Marine Granular Desert Basins Aggregated Slopes (te 5) Area 2 Yes Area 3 Yes Area 4 Alquist Priolo Earthquake Fault City of San Diego (te 6) In Hazard Zone Slopes 1992; City of San Diego (te 7) Area 3 Slopes 1999; City of San Diego (te 8) Area 1 Area 2 Area 3 Area 4 8

Solomon Properties Flp Current Owner: Local Hazard Disclosure Statement Fire Hazard Severity Zones (te 9) Yes Very High Urban Wild High Moderate Yes 100 Year Floodway (te 11) Unexploded Ordnance, City of San Diego (te 10) Benson/Octillo Dry Lake Border Field State Park Borrego Hotel Borrego Manuever Borrego Navy Military Wash Brownfield Camp Ensign Clark Dry Lake Camp Lockett Elliot Ramona Bombing Target Definitions: te 1 Earthquake Faults; City of San Diego Fault-A fault is a fracture in the Earth along which blocks of crust on either side have moved relative to one another. Inferred Fault-Seismologists infer based upon many processes to determine that a fault is present without actual visible evidence that a fault exists. Concealed Fault/Blind Fault-When fractures do not rupture all the way to the surface they are known as blind faults. These features are usually associated with thrust faults, which are formed by compressive stresses. Blind thrust faults are buried under the uppermost layers of crust, but they cause the surface layers to fold over them as they deform, forming a tell-tale hill at the surface that identify them to scientists. Shear Zones-Are the deep-level equivalents to faults. They should accommodate relative displacement of the surrounding rocks just as faults do but rather than be surfaces, they consistute bands of rock that have undergone deformation. Some shear zones can be narrow - rather like faults. Others can be tens of miles wide - the deep-lithosphere equivalents of fault-dominated plate boundaries seen at the Earth's surface today. te 2 Geologic Hazards; City of San Diego The San Diego Seismic Safety Study is a series of maps that indicate the likely geologic hazards throughout the city. These maps may be used to evaluate the relative risk within a region or to determine if a geotechnical report is required for development or building permits.these maps do not furnish site specific information and should be used only as a guide when evaluating risk. They are intended to be an indicator of what to expect at your site and provide general geologic hazard information. te 3 Dam Inundation; County of San Diego Area that could be flooded by a potential dam failure te 4 Aquifers County; of San Diego An aquifer is an underground layer of water-bearing permeable rock or unconsolidated materials (gravel, sand, silt, or clay) from which groundwater can be usefully extracted using a water well. The study of water flow in aquifers and the characterization of aquifers is called hydrogeology. Related terms include aquitard, which is an impermeable layer along an aquifer, and aquiclude (or aquifuge), which is a solid, impermeable area underlying or overlying an aquifer. The surface of saturated material in an aquifer is known as the water table. 9

Solomon Properties Flp Current Owner: te 5 Aggregated Slopes; County of San Diego Slope stability refers to the landslide susceptibility of slope-forming materials composed of natural rock, soils, artificial fill, or combinations thereof. Landslides move along surfaces of separation by falling, sliding, and flowing, giving rise to many characteristic features. The features range in appearance from being clearly discernible, largely unweathered and uneroded, to highly weathered and eroded, recognized only by topographic configurations. Landslides are characteristically abundant in areas of high seismicity, steep slope, and high rainfall, but may be triggered by any or a mixture of the following: (1) type and structure of earth materials, (2) steepness of slope, (3) water, (4) vegetation, (5) erosion, and (6) earthquake-generated groundshaking. Area 1 less than 15% slope Area 2 15% to less than 25% slope Area 3 25% to less than 50% slope Area 4 50% slope or steeper te 6 Alquist Priolo Earthquake Fault Zone; City of San Diego The Alquist-Priolo Earthquake Fault Zoning Act was passed in 1972 to mitigate the hazard of surface faulting to structures for human occupancy. This state law was a direct result of the 1971 San Fernando Earthquake, which was associated with extensive surface fault ruptures that damaged numerous homes, commercial buildings, and other structures. Surface rupture is the most easily avoided seismic hazard. The Alquist-Priolo Earthquake Fault Zoning Act's main purpose is to prevent the construction of buildings used for human occupancy on the surface trace of active faults. The Act only addresses the hazard of surface fault rupture and is not directed toward other earthquake hazards. The Seismic Hazards Mapping Act, passed in 1990, addresses non-surface fault rupture earthquake hazards, including liquefaction and seismically induced landslides. te 7 Slopes 1992; City of San Diego Slope stability refers to the landslide susceptibility of slope-forming materials composed of natural rock, soils, artificial fill, or combinations thereof. Landslides move along surfaces of separation by falling, sliding, and flowing, giving rise to many characteristic features. The features range in appearance from being clearly discernible, largely unweathered and uneroded, to highly weathered and eroded, recognized only by topographic configurations. Landslides are characteristically abundant in areas of high seismicity, steep slope, and high rainfall, but may be triggered by any or a mixture of the following: (1) type and structure of earth materials, (2) steepness of slope, (3) water, (4) vegetation, (5) erosion, and (6) earthquake-generated groundshaking. Area 1 less than 15% slope Area 2 15% to less than 25% slope Area 3 25% to less than 40% slope Area 4 40% slope or steeper te 8 Slopes 1999; City of San Diego Slope stability refers to the landslide susceptibility of slope-forming materials composed of natural rock, soils, artificial fill, or combinations thereof. Landslides move along surfaces of separation by falling, sliding, and flowing, giving rise to many characteristic features. The features range in appearance from being clearly discernible, largely unweathered and uneroded, to highly weathered and eroded, recognized only by topographic configurations. Landslides are characteristically abundant in areas of high seismicity, steep slope, and high rainfall, but may be triggered by any or a mixture of the following: (1) type and structure of earth materials, (2) steepness of slope, (3) water, (4) vegetation, (5) erosion, and (6) earthquake-generated groundshaking. Area 1 less than 15% slope Area 2 15% to less than 25% slope Area 3 25% to less than 40% slope Area 4 40% slope or steeper 10

Current Owner: Solomon Properties Flp te 9 Fire Hazard Severity Zones, County of San Diego PRC 4201-4204 and Govt. Code 51175-89 direct the California Department of Forestry and Fire Protection (CDF) to map areas of significant fire hazards based on fuels, terrain, weather, and other relevant factors. These zones, referred to as Fire Hazard Severity Zones (FHSZ), then define the application of various mitigation strategies to reduce risk associated with wildland fires. State Responsibility Area (SRA) was originally mapped in 1985 and has not been updated since, except with respect to changes in SRA boundaries. Local Responsibility Areas (LRA) were originally mapped in 1996, and also has not been updated since, although many local governments have made similar designations under their own authority. Current FHSZ is available for 1985 SRA, 2007 SRA and LRA. CDF wishes to remap both SRA and LRA areas to provide updated map zones, based on new data, science, and technology that will create more accurate zone designations such that mitigation strategies are implemented in areas where hazards warrant these investments. The zones will provide specific designation for application of defensible space and building standards consistent with known mechanisms of fire risk to people, property, and natural resources. The project will be driven by Geographic Information System (GIS) data in conjunction with modeling techniques designed to describe potential fire behavior and fire probability. Areas will be mapped in Moderate, High and Very High Categories. The project will run along two concurrent tracks: one designed to develop and refine the model itself regarding its scientific rigor, spatial accuracy, and data delivery mechanisms designed to facilitate end use by a wide variety of clients. The other track will focus on the roll-out and implementation process whereby local CDF units and local fire agencies review/comment and adjust the zones to conform to local knowledge not captured in the draft model. Finally, the maps will follow established adoption processes required by state statute, and be made available by Jan 1, 2008, consistent with implementation of new Wildand-Urban Interface (WUI) building codes that have been adopted by the California Building Standards Commission. The basic elements of the Fire Hazard Zone model will be built from existing data and hazard constructs developed by CDF s Fire and Resource Assessment Program (FRAP) used to develop Fire Threat and Communities at Risk listing in the Federal Register pursuant to the National Fire Plan (see http://frap.cdf.ca.gov/projects/wui/525_ca_wui_analysis.pdf for details). The model will work from these products as starting points, and refine characterization of the zones to directly attempt to characterize fire exposure mechanisms that cause ignitions to structures. These basic constructs follow classical quantitative risk assessment whereby probabilities of fire behaviors define the hazard component of risk analysis. CDF FRAP is partnering with researchers at UC Berkeley and the private sector to develop this model and it promises to use innovative techniques to meet the objectives and usage of the data. Specific model components will focus on characterizing potential fire behavior arising for vegetation fuels that are by nature dynamic. Since many of the applications of the zones involve permanent engineering mitigations associated with structure construction, it is desirable that the nature of the zone reflect changes in fire behavior/exposure relative to the length of time the structure will be in place. While obviously significant land-use changes will need to be captured through period maintenance routines, basic vegetation dynamics and maximal hazard levels will be used to develop the model such that mitigations match potential exposure over the horizon of the mitigation design. The model will also incorporate a measure of fire probability predicated on frequency of fire weather, ignition patterns, expected rate-of spread, and/or past fire history similar to techniques uses to calculate fire rotation as used in the development of Fire Threat. A detailed description of components used in Fire Threat can be found here. Finally, the model will characterize flying ember (brand) production from vegetation fuels, and zoning hazard based on the area of influence that those brands are likely to land and cause potential ignitions. This functional mechanism of hazard is the principal driver of hazard in densely developed areas. A related concern in already built-out areas is the relative density of vegetative fuels that can serve as receptive sites for new spot fires to initiate within the urban core, and then spread to adjacent structures. The project will explore techniques to model accurately both the brand production/reception element, as well as fire spread potential in urbanized areas. Additional details regarding planning for map implementation will follow as they become available. Draft model maps will be presented to four pilot counties (Butte, Calaveras, San Diego, and Sonoma) will be reviewed at workshops and in the field over the course of July and August, 2006. Changes to the model based on these reviews will be incorporated into the final draft model methodology. A science-peer review process will follow in September, 2006, resulting in final model methodology. Statewide DRAFT mapping will commence in September and be completed by December, 2006.< Final model packaging for outreach, review, validation and implementation will be completed by February 1, 2007. 11

Current Owner: Solomon Properties Flp For SRA lands, systematic map review implementation, and adoption procedures will be conducted over the Jan.-Dec., 2007 period, including public hearings and comment from June through September, with final adopted zones completed by Jan.1, 2008. For LRA lands, draft maps will be provided to local agencies for review and comment from vember 2007 - March 2008, with transmittal of recommended Very High zones beginning in March 2008. For more information on Hazard Mapping and associated Building Codes, please see http://www.fire.ca.gov/fire_protection/fire_protection_prevention_planning_wildland.php. te 10 Unexploded ordnance, City of San Diego Unexploded ordnance (or UXOs/UXBs, sometimes acronymized as UO) are explosive weapons (bombs, bullets, shells, grenades, land mines, naval mines, etc.) that did not explode when they were employed and still pose a risk of detonation, potentially many decades after they were used or discarded. While "UXO" is widely and informally used, munitions and explosives of concern (MEC) is the current preferred terminology within the remediation community. Unexploded Ordnance (UXO) is defined as military munitions that have been: Primed, fused, armed or otherwise prepared for action Fired, dropped, launched, projected, or placed in such a manner to constitute a hazard to operations, installations, personnel, or material Remain unexploded either by malfunction, design, or any other case It is important to know UXO: Come in many shapes and sizes. (Some will look new and others will look old and rusty. Some will look like bullets or bombs. Some will look like pointed metal pipes, soda cans, small balls, or even an old car muffler.) May be clearly visible; may be partially or completely hidden. May be easy or virtually impossible to recognize as a military munition. UXO can be found: On top of the ground, or partially or completely buried in the ground or by vegetation, sand or snow. In or under high grass or bushes. Under water, in lakes or streams or, even, the ocean. UXO may look like a bullet or bomb, or be in many pieces. (Even small pieces of UXO can be dangerous.) For decades, soldiers and weapons developers have gone to ranges and training areas to train with and test bombs, projectiles, grenades, and other munitions. A portion of these munitions did not function as designed, becoming what is known as unexploded ordnance (UXO). UXO has accumulated from these activities over the years at approximately 1,700 Formerly Used Defense Sites (FUDS), 25 Base Realignment and Closure (BRAC) sites, and a number of active installations covering millions of acres. If disturbed, (touched, picked up, played with, kicked, thrown, etc) UXO may explode without warning, making it potentially hazardous at training sites and installations. te 11 unincorporated floodplains for areas most likely to be subjected to inundation by a 100 year flood. For further information, please contact SANGIS, 5469 Kearny Villa Road #102, San Diego, CA 92123. For general information regarding geologic zones please visit the California Department of Conservation, California Geological Survey, on the World Wide Web at http://www.consrv.ca.gov/cgs/index.htm 12

Property Address: Current Owner: montauk St Solomon Properties Flp Order Number: 1629719 Additional Statutory Disclosures AIRPORT INFLUENCE AREA DISCLOSURE STATEMENT The transferor and his or her agent(s) disclose the following information with the knowledge that even though this is not a warranty, prospective transferees may rely on this information in deciding whether and on what terms to purchase the subject property. Transferor hereby authorizes any agent(s) representing any principal(s) in this action to provide a copy of this statement to any person or entity in connection with any actual or anticipated sale of the property. The following are representations made by the transferor and his or her agent(s) based on their knowledge and maps drawn by the state and federal governments. This information is a disclosure and is not intended to be part of any contract between the transferee and transferor. AIRPORT INFLUENCE AREA DISCLOSURE If this property is presently located in the vicinity of an airport, within what is known as an airport influence area the property may be subject to some of the annoyances or inconveniences associated with proximity to airport operations (noise, vibration, or odors for example). Individual sensitivities to such annoyances can vary from person to person. You may wish to consider what airport annoyances effects related to aircraft operations, if any, are associated with the property before you complete your purchase and determine whether they are acceptable to you. For purposes of this disclosure, an airport influence area, also known as an airport referral area, is the area in which current or future airport-related noise, over flight, safety, or airspace protection factors may significantly affect land uses or necessitate restrictions on those uses as determined by an airport land use commission. The disclosure Company relies on maps provided by County Land Use authorities to determine Airport Influence Area exposure. Where Land Use authorities have not provided explicit areas, the following four Federal Aviation Administration landing facilities databases were utilized and to determine if an airport is located within 2 miles of the subject property. - National Flight Data Center (NFDC) database for February 1994 National Plan of Integrated Airport Systems (NPIAS) database, current as of May 1994 Air Carrier Activity Information System *ACAIS) database for calendar year 1992 Terminal Area Forecast (TAF) for FY91 AirNav.com Other known credible sources Inclusion of private and military airports varies by county and may or may not be included in this disclosure report. 13

Current Owner: Solomon Properties Flp Radon Disclosure Hazard Statement The EPA Map of Radon Zones was developed using five factors to determine radon potential: indoor radon measurements; geology; aerial radioactivity; soil permeability; and, foundation type. Radon potential assessment is based on geologic provinces. Radon Index Matrix is the quantitative assessment of radon potential. Confidence Index Matrix shows the quantity and quality of the data used to assess radon potential. Geologic Provinces were adapted to county boundaries for the Map of Radon Zones. Sections 307 and 309 of the Indoor Radon Abatement Act of 1988 (IRAA) directed EPA to list and identify areas of the U.S. with the potential for elevated indoor radon levels. EPA's Map of Radon Zones assigns each of the 3,141 counties in the U.S. to one of three zones based on radon potential: Zone 1 counties have a predicted average indoor radon screening level greater than 4 pci/l (pico curies per liter) (red zones) Zone 2 counties have a predicted average indoor radon screening level between 2 and 4 pci/l (orange zones) Yes Zone 3 counties have a predicted average indoor radon screening level less than 2 pci/l (yellow zones) Highest Potential Moderate Potential Low Potential This report is for informational purposes only. Radon Map can be reviewed at the following address: www.epa.gov/radon/zonemap/california.htm 14

Current Owner: Solomon Properties Flp FORMER MILITARY ORDNANCE SITE DISCLOSURE SUPPLEMENT Former Military Ordnance (FUD) sites can include sites with common industrial waste (such as fuels), ordnance or other warfare materiel, unsafe structures to be demolished, or debris for removal. California Civil Code 1102 requires disclosure of those sites containing unexploded ordnance. "Military ordnance" is any kind of munitions, explosive device/material or chemical agent used in military weapons. Unexploded ordnance are munitions that did not detonate. NOTE: most FUD sites do not contain unexploded ordnance. Only those FUD sites that the U.S. Army Corps of Engineers (USACE) has identified to contain Military Ordnance or have mitigation projects planned for them are disclosed in this report. Additional sites may be added as military installations are released under the Federal Base Realignment and Closure (BRAC) Act. Active military sites are NOT included on the FUD site list. Data contained in Inventory Project Reports, Archives Search Reports, and related materials produced for, and made publicly available in conjunction with, the Defense Environmental Restoration Program for Formerly Used Defense Sites by the U.S. Army Corps of Engineers. Sites for which no map has been made publicly available shall not be disclosed. 15

Current Owner: Solomon Properties Flp Details of locations found within 1 mile of subject property: Location Name FUDS# 16

Solomon Properties Flp Current Owner: California Right to Farm Disclosure Statement This real property lies within One Mile of a Right to Farm Area: Prime Farmland (P) Farmland of Statewide Importance (S) Unique Farmland (U) Farmland of Local Importance (L) Yes Grazing Land (G) Yes Discussion If the property is presently located within one mile of a parcel of real property designated as Prime Farmland, Farmland of Statewide Importance, Unique Farmland, Farmland of Local Importance, or Grazing Land on the most current Important Farmland Map, issued by the California Department of Conservation, Division of Land Resource Protection, the following notice is required: tice of Right to Farm This property is located within one mile of a farm or ranch designated on the current county level GIS important Farmland Map issued by the California Department of Conservation, Division of Land Resource Protection. Accordingly, the property may be subject to inconveniences or discomforts resulting from agricultural operations that are normal and necessary aspect of living in a community with a strong rural character and a healthy agricultural sector. Customary agricultural practices in farm operations may include, but are not limited to noise, odors, dust, light, insects, the operation of pumps and machinery, the storage and disposal manure, bee pollination, and the ground or aerial application of fertilizers, pesticides, and herbicides. These agricultural practices may occur at any time during the 24 hour day. Individual sensitivities to those practices can vary from person to person. You may wish to consider impacts of such agricultural practices before you complete your purchase. Please be advised that you may be barred from obtaining legal remedies against agricultural practices conducted in a manner consistent with proper and accepted customs and standards pursuant to Section 3482.5 of the Civil Code or any pertinent local ordinance. California has a Right to Farm Act-Civil Code Section 3482.5 to protect farming operations. When agricultural land within the state's agricultural areas is bought and sold, the purchasers are often not made aware of the fact that there are right -to-farm laws. This has lead to confusion and a misunderstanding of the actual uses of the land or uses of the surrounding agricultural lands. In 2008 the state of California enacted Assembly Bill 2881 to limit the exposure of farmers to nuisance lawsuits by homeowners in neighboring developments. The mechanism of this bill is a formal notification of the buyer, through a tice of Right to Farm in an expert disclosure report, that advises the buyer if the subject property is within one mile as defined by the bill. If the seller has actual knowledge of an agricultural operation in the vicinity of the subject property that is not disclosed in this report, and that is material to the transaction, the seller should disclose this actual knowledge in writing to the buyer. Public Record Based on the most current publicly available version of the Important Farmland Map issued by the California Department of Conservation, Division of Land Resource Protection, utilizing solely the county level GIS map data, if any available on the Divisions Farmland Mapping and Monitoring Program website, pursuant to Section 11010 of the Business and Professions Code, Section 1103.4 of the California Civil Code. Reporting Standard YES shall be reported and the tice to Right to Farm provided if any portion of the property situated within or within one mile of a parcel of real property designated as Prime Farmland, Farmland of Statewide Importance, Unique Farmland, Farmland of Local Importance, or Grazing Land in the public record. NO shall be reported if no portion of the property is within that area. 17

Current Owner: Solomon Properties Flp Definitions: Prime Farmland (P) - irrigated land with the best combination of physical and chemical features able to sustain long term production of agricultural crops. This land has soil quality, growing season and moisture supply needed to produce sustained high yields. Land must have been used for production of irrigated crops at some time during the four years prior to mapping date. Farmland of Statewide Importance (S) - irrigated land similar to prime farmland that has good combination of physical and chemical characteristics for the production of agricultural crops. This land has minor shortcomings, such as greater slopes or less ability to store soil moisture than prime farmland. Land must have been used for production of irrigated crops at some time during the four years prior to mapping date. Unique Farmland (U) - less quality soils used for the production of the state's leading agricultural crops. This land is usually irrigated, but may include non-irrigated orchards or vineyards as found in some climatic zones in California. Land must have been cropped at some time during the four years prior to mapping date. Farmland of Local Importance (L) -farmlands growing dryland pasture, dryland small grains and irrigated pasture. Grazing Land (G) - land on which the existing vegetation is suited to the grazing of livestock, This category is used only in California and was developed in cooperation with the California Cattleman's Association, University of California Cooperative Extension, and other groups interested in the extent of grazing activities. 18

Current Owner: Solomon Properties Flp CAL FIRE WILDLAND FIRE PREVENTION SUPPLEMENT Definitions: On September 20, 2005, the California Building Standards Commission approved the Office of the State Fire Marshal s emergency regulations amending the California Code of Regulations (CCR), Title 24, Part 2, known as the 2007 California Building Code (CBC). 701A.3.2 New Buildings Located in Any Fire Hazard Severity Zone. New buildings located in any Fire Hazard Severity Zone within State Responsibility Areas, any Local Agency Very-High Fire Hazard Severity Zone, or any Wildland-Urban Interface Fire Area designated by the enforcing agency for which an application for a building permit is submitted on or after January 1, 2008, shall comply with all sections of this chapter. New buildings located in any Fire Hazard Severity Zone shall comply with one of the following: 1. State Responsibility Areas. New buildings located in any Fire Hazard Severity Zone within State Responsibility Areas, for which an application for a building permit is submitted on or after January 1, 2008, shall comply with all sections of this chapter. 2. Local Agency Very-High Fire Hazard Severity Zone. New buildings located in any Local Agency Very High Fire Hazard Severity Zone for which an application for a building permit is submitted on or after July 1, 2008, shall comply with all sections of this chapter. 3. Federal/Wildland-Urban Interface Fire Area designated by the enforcing agency. New buildings located in any Wildland-Urban Interface Fire Area designated by the enforcing agency for which an application for a building permit is submitted on or after January 1, 2008, shall comply with all sections of this chapter. OBJECTIVE The broad objective of the Wildland-Urban Interface Fire Area Building Standards is to establish minimum standards for materials and material assemblies and provide a reasonable level of exterior wildfire exposure protection for buildings in Wildland-Urban Interface Fire Areas. The use of ignition resistant materials and design to resist the intrusion of flame or burning embers projected by a vegetation fire (wildfire exposure) will prove to be the most prudent effort California has made to try and mitigate the losses resulting from our repeating cycle of interface fire disasters. The California Department of Forestry and Fire Protection (CAL FIRE) and the Office of the State Fire Marshal (OSFM) revised the mandatory effective date for those areas where local government has responsibility for wildland fire protection (LRA) to July 1, 2008, to enable local government agencies more time to review and accept the fire hazard severity zone maps that will be presented to them formally after the new year. FHSZ MAPS The existing FHSZ maps are being updated pursuant to Public Resources Code Sections 4201 4204 and Government Code Sections 51175 51189. CAL FIRE completed the public hearings for the adoption of Fire Hazard Severity Zones (FHSZ) for those areas of California where the state has fiscal responsibility for wildland fire protection, known as State Responsibility Areas (SRA). CAL FIRE s intent is to complete the SRA FHSZ adoption by December, 2007. 19