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<SEC-DOCUMENT>0001104659-10-040964.txt : 20100802
<SEC-HEADER>0001104659-10-040964.hdr.sgml : 20100802
<ACCEPTANCE-DATETIME>20100802093047
ACCESSION NUMBER:		0001104659-10-040964
CONFORMED SUBMISSION TYPE:	10-Q
PUBLIC DOCUMENT COUNT:		5
CONFORMED PERIOD OF REPORT:	20100630
FILED AS OF DATE:		20100802
DATE AS OF CHANGE:		20100802

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			LTC PROPERTIES INC
		CENTRAL INDEX KEY:			0000887905
		STANDARD INDUSTRIAL CLASSIFICATION:	REAL ESTATE INVESTMENT TRUSTS [6798]
		IRS NUMBER:				710720518
		STATE OF INCORPORATION:			MD
		FISCAL YEAR END:			1231

	FILING VALUES:
		FORM TYPE:		10-Q
		SEC ACT:		1934 Act
		SEC FILE NUMBER:	001-11314
		FILM NUMBER:		10982958

	BUSINESS ADDRESS:	
		STREET 1:		31365 OAK CREST DRIVE
		STREET 2:		SUITE 200
		CITY:			WESTLAKE VILLIAGE
		STATE:			CA
		ZIP:			91361
		BUSINESS PHONE:		805-981-8655

	MAIL ADDRESS:	
		STREET 1:		31365 OAK CREST DRIVE
		STREET 2:		SUITE 200
		CITY:			WESTLAKE VILLIAGE
		STATE:			CA
		ZIP:			91361
</SEC-HEADER>
<DOCUMENT>
<TYPE>10-Q
<SEQUENCE>1
<FILENAME>a10-12718_110q.htm
<DESCRIPTION>10-Q
<TEXT>

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<div style="font-family:Times New Roman;">

<div style="border:none;border-top:double windowtext 2.25pt;padding:1.0pt 0in 0in 0in;">

<p align="center" style="border:none;margin:0in 0in .0001pt;padding:0in;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

</div>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="4" face="Times New Roman" style="font-size:14.0pt;">UNITED STATES</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><b><font size="5" face="Times New Roman" style="font-size:16.0pt;font-weight:bold;">SECURITIES
AND EXCHANGE COMMISSION</font></b></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="4" face="Times New Roman" style="font-size:14.0pt;">Washington,
D.C.&#160; 20549</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<div align="center" style="margin:0in 0in .0001pt;text-align:center;"><hr size="1" width="15%" noshade color="black" align="center"></div>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="5" face="Times New Roman" style="font-size:20.0pt;">FORM&nbsp;10-Q</font></p>

<div align="center">

<table border="0" cellspacing="0" cellpadding="0" width="100%" style="border-collapse:collapse;width:100.0%;">
 <tr>
  <td width="18%" valign="top" style="padding:0in 0in 0in 0in;width:18.0%;">
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="1" face="Times New Roman" style="font-size:8.0pt;">(Mark One)</font></p>
  </td>
  <td width="64%" valign="top" style="padding:0in 0in 0in 0in;width:64.0%;">
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="18%" valign="top" style="padding:0in 0in 0in 0in;width:18.0%;">
  <p style="margin:0in 0in .0001pt 10.0pt;text-indent:-10.0pt;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="18%" valign="top" style="padding:0in 0in 0in 0in;width:18.0%;">
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="3" face="Wingdings" style="font-size:12.0pt;">&#253;</font></p>
  </td>
  <td width="64%" valign="top" style="padding:0in 0in 0in 0in;width:64.0%;">
  <p style="margin:0in 0in .0001pt .2in;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">QUARTERLY REPORT
  PURSUANT TO SECTION&nbsp;13 OR 15(d) <br>
  OF THE SECURITIES EXCHANGE ACT OF 1934 </font></p>
  </td>
  <td width="18%" valign="top" style="padding:0in 0in 0in 0in;width:18.0%;">
  <p style="margin:0in 0in .0001pt 10.0pt;text-indent:-10.0pt;"><font size="3" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="18%" valign="top" style="padding:0in 0in 0in 0in;width:18.0%;">
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">&nbsp;</font></p>
  </td>
  <td width="64%" valign="top" style="padding:0in 0in 0in 0in;width:64.0%;">
  <p align="center" style="margin:0in 0in .0001pt .2in;text-align:center;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">&nbsp;</font></p>
  </td>
  <td width="18%" valign="top" style="padding:0in 0in 0in 0in;width:18.0%;">
  <p style="margin:0in 0in .0001pt 10.0pt;text-indent:-10.0pt;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="18%" valign="top" style="padding:0in 0in 0in 0in;width:18.0%;">
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="3" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="64%" valign="top" style="padding:0in 0in 0in 0in;width:64.0%;">
  <p align="center" style="margin:0in 0in .0001pt .2in;text-align:center;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">For the quarterly period ended June&nbsp;30, 2010</font></p>
  </td>
  <td width="18%" valign="top" style="padding:0in 0in 0in 0in;width:18.0%;">
  <p style="margin:0in 0in .0001pt 10.0pt;text-indent:-10.0pt;"><font size="3" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="18%" valign="top" style="padding:0in 0in 0in 0in;width:18.0%;">
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">&nbsp;</font></p>
  </td>
  <td width="64%" valign="top" style="padding:0in 0in 0in 0in;width:64.0%;">
  <p align="center" style="margin:0in 0in .0001pt .2in;text-align:center;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">&nbsp;</font></p>
  </td>
  <td width="18%" valign="top" style="padding:0in 0in 0in 0in;width:18.0%;">
  <p style="margin:0in 0in .0001pt 10.0pt;text-indent:-10.0pt;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="18%" valign="top" style="padding:0in 0in 0in 0in;width:18.0%;">
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="3" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="64%" valign="top" style="padding:0in 0in 0in 0in;width:64.0%;">
  <p align="center" style="margin:0in 0in .0001pt .2in;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">OR</font></p>
  </td>
  <td width="18%" valign="top" style="padding:0in 0in 0in 0in;width:18.0%;">
  <p style="margin:0in 0in .0001pt 10.0pt;text-indent:-10.0pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="18%" valign="top" style="padding:0in 0in 0in 0in;width:18.0%;">
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">&nbsp;</font></p>
  </td>
  <td width="64%" valign="top" style="padding:0in 0in 0in 0in;width:64.0%;">
  <p align="center" style="margin:0in 0in .0001pt .2in;text-align:center;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">&nbsp;</font></p>
  </td>
  <td width="18%" valign="top" style="padding:0in 0in 0in 0in;width:18.0%;">
  <p style="margin:0in 0in .0001pt 10.0pt;text-indent:-10.0pt;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="18%" valign="top" style="padding:0in 0in 0in 0in;width:18.0%;">
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="3" face="Wingdings" style="font-size:12.0pt;">o</font></p>
  </td>
  <td width="64%" valign="top" style="padding:0in 0in 0in 0in;width:64.0%;">
  <p style="margin:0in 0in .0001pt .2in;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">TRANSITION REPORT
  PURSUANT TO SECTION&nbsp;13 OR 15(d) <br>
  OF THE SECURITIES EXCHANGE ACT OF 1934 </font></p>
  </td>
  <td width="18%" valign="top" style="padding:0in 0in 0in 0in;width:18.0%;">
  <p style="margin:0in 0in .0001pt 10.0pt;text-indent:-10.0pt;"><font size="3" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
 </tr>
</table>

</div>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:11.0pt;">For the Transition
period from <u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</u> to <u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</u></font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">Commission file
number 1-11314</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><b><font size="5" face="Times New Roman" style="font-size:20.0pt;font-weight:bold;">LTC
PROPERTIES,&nbsp;INC.</font></b></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:11.0pt;">(Exact name of
Registrant as specified in its charter)</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<div align="center">

<table border="0" cellspacing="0" cellpadding="0" width="100%" style="border-collapse:collapse;width:100.0%;">
 <tr>
  <td width="40%" valign="top" style="padding:0in 0in 0in 0in;width:40.0%;">
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:11.0pt;">Maryland</font></p>
  </td>
  <td width="20%" valign="bottom" style="padding:0in 0in 0in 0in;width:20.0%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="40%" valign="top" style="padding:0in 0in 0in 0in;width:40.0%;">
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:11.0pt;">71-0720518</font></p>
  </td>
 </tr>
 <tr>
  <td width="40%" valign="top" style="padding:0in 0in 0in 0in;width:40.0%;">
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:11.0pt;">(State or other
  jurisdiction of</font></p>
  </td>
  <td width="20%" valign="bottom" style="padding:0in 0in 0in 0in;width:20.0%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="40%" valign="top" style="padding:0in 0in 0in 0in;width:40.0%;">
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:11.0pt;">(I.R.S. Employer</font></p>
  </td>
 </tr>
 <tr>
  <td width="40%" valign="top" style="padding:0in 0in 0in 0in;width:40.0%;">
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:11.0pt;">incorporation or
  organization)</font></p>
  </td>
  <td width="20%" valign="bottom" style="padding:0in 0in 0in 0in;width:20.0%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="40%" valign="top" style="padding:0in 0in 0in 0in;width:40.0%;">
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:11.0pt;">Identification
  No.)</font></p>
  </td>
 </tr>
</table>

</div>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">31365 Oak Crest Drive, Suite&nbsp;200</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Westlake Village, California&#160;
91361</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(Address of principal executive offices, including zip code)</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(805) 981-8655</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(Registrant&#146;s telephone number, including area code)</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Indicate
by check mark whether registrant (1)&nbsp;has filed all reports required to be
filed by Section&nbsp;13 or 15(d)&nbsp;of the Securities Exchange Act of 1934
during the preceding 12 months (or for such shorter period that the registrant
was required to file such reports), and (2)&nbsp;has been subject to such
filing requirements for the past 90 days.&#160;&#160;
Yes&#160; </font><font size="2" face="Wingdings" style="font-size:10.0pt;">&#254;</font><font size="2" style="font-size:10.0pt;">&#160; No&#160; </font><font size="2" face="Wingdings" style="font-size:10.0pt;">o</font></p>

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Indicate
by check mark whether the registrant has submitted electronically and posted on
its corporate Web site, if any, every Interactive Data File required to be
submitted and posted pursuant to Rule&nbsp;405 of Regulation S-T (&#167; 232.405 of
this chapter) during the preceding 12 months (or for such shorter period that
the registrant was required to submit and post such files).&#160;&#160; Yes&#160; </font><font size="2" face="Wingdings" style="font-size:10.0pt;">o</font><font size="2" style="font-size:10.0pt;">&#160; No&#160; </font><font size="2" face="Wingdings" style="font-size:10.0pt;">o</font></p>

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Indicate
by check mark whether the registrant is a large accelerated filer, an
accelerated filer a non-accelerated filer, or a smaller reporting company.&#160; See definitions of &#147;large accelerated filer,&#148;
&#147;accelerated filer&#148; and &#147;smaller reporting company&#148; in Rule&nbsp;12b-2 of the
Exchange Act.</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<table border="0" cellspacing="0" cellpadding="0" width="100%" style="border-collapse:collapse;width:100.0%;">
 <tr>
  <td width="25%" valign="top" style="padding:0in 0in 0in 0in;width:25.0%;">
  <p align="right" style="margin:0in .2in .0001pt 10.1pt;text-align:right;text-autospace:none;text-indent:-10.1pt;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">Large
  accelerated filer </font><font size="1" face="Wingdings" style="font-size:9.0pt;">&#168;</font></p>
  </td>
  <td width="21%" valign="top" style="padding:0in 0in 0in 0in;width:21.84%;">
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;text-autospace:none;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">Accelerated filer </font><font size="1" face="Wingdings" style="font-size:9.0pt;">&#254;</font></p>
  </td>
  <td width="23%" valign="top" style="padding:0in 0in 0in 0in;width:23.58%;">
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;text-autospace:none;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">Non-accelerated filer </font><font size="1" face="Wingdings" style="font-size:9.0pt;">&#168;</font></p>
  </td>
  <td width="29%" valign="top" style="padding:0in 0in 0in 0in;width:29.58%;">
  <p style="margin:0in 0in .0001pt .2in;text-autospace:none;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">Smaller reporting company </font><font size="1" face="Wingdings" style="font-size:9.0pt;">&#168;</font></p>
  </td>
 </tr>
 <tr>
  <td width="25%" valign="top" style="padding:0in 0in 0in 0in;width:25.0%;">
  <p style="margin:0in 0in .0001pt 10.0pt;text-autospace:none;text-indent:-10.0pt;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="21%" valign="top" style="padding:0in 0in 0in 0in;width:21.84%;">
  <p style="margin:0in 0in .0001pt;text-autospace:none;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="23%" valign="top" style="padding:0in 0in 0in 0in;width:23.58%;">
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;text-autospace:none;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">(Do not check if a <br>
  smaller reporting company)</font></p>
  </td>
  <td width="29%" valign="top" style="padding:0in 0in 0in 0in;width:29.58%;">
  <p style="margin:0in 0in .0001pt;text-autospace:none;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
 </tr>
</table>

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Indicate
by check mark whether the registrant is a shell company (as defined in Rule&nbsp;12b-2
of the Exchange Act).&#160;&#160; Yes&#160; </font><font size="2" face="Wingdings" style="font-size:10.0pt;">&#168;</font><font size="2" style="font-size:10.0pt;">&#160; No&#160; </font><font size="2" face="Wingdings" style="font-size:10.0pt;">&#254;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">The number of shares of common stock outstanding on July&nbsp;26, 2010
was 23,799,484.</font></p>

<div style="border:none;border-bottom:double windowtext 1.5pt;padding:0in 0in 1.0pt 0in;">

<p align="center" style="border:none;margin:0in 0in .0001pt;padding:0in;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

</div>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<div style="margin:0in 0in .0001pt;"><hr size="3" width="100%" noshade color="#010101" align="left"></div>

</div>
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<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><b><font size="3" face="Times New Roman" style="font-size:12.0pt;font-weight:bold;">LTC
PROPERTIES,&nbsp;INC.</font></b></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><b><font size="3" face="Times New Roman" style="font-size:12.0pt;font-weight:bold;">FORM&nbsp;10-Q</font></b></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><b><font size="3" face="Times New Roman" style="font-size:12.0pt;font-weight:bold;">June&nbsp;30,
2010</font></b></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><b><font size="3" face="Times New Roman" style="font-size:12.0pt;font-weight:bold;">INDEX</font></b></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<table border="0" cellspacing="0" cellpadding="0" width="100%" style="border-collapse:collapse;width:100.0%;">
 <tr>
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  <p style="margin:0in 0in .0001pt 10.0pt;text-indent:-10.0pt;"><b><font size="2" face="Times New Roman" style="font-size:11.0pt;font-weight:bold;">PART&nbsp;I </font></b><b><font size="2" style="font-size:11.0pt;font-weight:bold;">--</font></b><b><font size="2" style="font-size:11.0pt;font-weight:bold;"> Financial Information</font></b></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.5%;">
  <p style="margin:0in 0in .0001pt;"><b><font size="2" face="Times New Roman" style="font-size:1.0pt;font-weight:bold;">&nbsp;</font></b></p>
  </td>
  <td width="5%" valign="bottom" style="padding:0in 0in 0in 0in;width:5.0%;">
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><b><u><font size="2" face="Times New Roman" style="font-size:11.0pt;font-weight:bold;">Page</font></u></b></p>
  </td>
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 <tr>
  <td width="92%" valign="bottom" style="padding:0in 0in 0in 0in;width:92.5%;">
  <p style="margin:0in 0in .0001pt 10.0pt;text-indent:-10.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.5%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="5%" valign="bottom" style="padding:0in 0in 0in 0in;width:5.0%;">
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
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 <tr>
  <td width="92%" valign="bottom" style="padding:0in 0in 0in 0in;width:92.5%;">
  <p style="margin:0in 0in .0001pt 10.0pt;text-indent:-10.0pt;"><font size="2" face="Times New Roman" style="font-size:11.0pt;">Item
  1. Financial Statements</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.5%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="5%" valign="bottom" style="padding:0in 0in 0in 0in;width:5.0%;">
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="92%" valign="bottom" style="padding:0in 0in 0in 0in;width:92.5%;">
  <p style="margin:0in 0in .0001pt 53.3pt;text-indent:-10.1pt;"><font size="2" face="Times New Roman" style="font-size:11.0pt;"><a href="#ConsolidatedBalanceSheets_222221" title="Click to goto ">Consolidated Balance Sheets</a></font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.5%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="5%" valign="bottom" style="padding:0in 0in 0in 0in;width:5.0%;">
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:11.0pt;">3</font></p>
  </td>
 </tr>
 <tr>
  <td width="92%" valign="bottom" style="padding:0in 0in 0in 0in;width:92.5%;">
  <p style="margin:0in 0in .0001pt 53.3pt;text-indent:-10.1pt;"><font size="2" face="Times New Roman" style="font-size:11.0pt;"><a href="#ConsolidatedStatementsOfIncome_222224" title="Click to goto ">Consolidated Statements of Income</a></font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.5%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="5%" valign="bottom" style="padding:0in 0in 0in 0in;width:5.0%;">
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:11.0pt;">4</font></p>
  </td>
 </tr>
 <tr>
  <td width="92%" valign="bottom" style="padding:0in 0in 0in 0in;width:92.5%;">
  <p style="margin:0in 0in .0001pt 53.3pt;text-indent:-10.1pt;"><font size="2" face="Times New Roman" style="font-size:11.0pt;"><a href="#ConsolidatedStatementsOfCashFlows_222225" title="Click to goto ">Consolidated Statements of Cash Flows</a></font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.5%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="5%" valign="bottom" style="padding:0in 0in 0in 0in;width:5.0%;">
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:11.0pt;">5</font></p>
  </td>
 </tr>
 <tr>
  <td width="92%" valign="bottom" style="padding:0in 0in 0in 0in;width:92.5%;">
  <p style="margin:0in 0in .0001pt 53.3pt;text-indent:-10.1pt;"><font size="2" face="Times New Roman" style="font-size:11.0pt;"><a href="#NotesToConsolidatedFinancialState_000023" title="Click to goto ">Notes to Consolidated Financial Statements</a></font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.5%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="5%" valign="bottom" style="padding:0in 0in 0in 0in;width:5.0%;">
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:11.0pt;">6</font></p>
  </td>
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  <td width="92%" valign="bottom" style="padding:0in 0in 0in 0in;width:92.5%;">
  <p style="margin:0in 0in .0001pt 10.0pt;text-indent:-10.0pt;"><font size="2" face="Times New Roman" style="font-size:11.0pt;">&nbsp;</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.5%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:11.0pt;">&nbsp;</font></p>
  </td>
  <td width="5%" valign="bottom" style="padding:0in 0in 0in 0in;width:5.0%;">
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:11.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="92%" valign="bottom" style="padding:0in 0in 0in 0in;width:92.5%;">
  <p style="margin:0in 0in .0001pt 10.0pt;text-indent:-10.0pt;"><font size="2" face="Times New Roman" style="font-size:11.0pt;"><a href="#ConditionAndResultsOfOperations_231014">Item 2.
  Management&#146;s Discussion and</a></font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.5%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="5%" valign="bottom" style="padding:0in 0in 0in 0in;width:5.0%;">
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
 </tr>
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  <td width="92%" valign="bottom" style="padding:0in 0in 0in 0in;width:92.5%;">
  <p style="margin:0in 0in .0001pt .7in;text-indent:-10.1pt;"><font size="2" face="Times New Roman" style="font-size:11.0pt;"><a href="#ConditionAndResultsOfOperations_231014">Analysis of
  Financial Condition and Results of Operations</a></font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.5%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="5%" valign="bottom" style="padding:0in 0in 0in 0in;width:5.0%;">
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:11.0pt;">22</font></p>
  </td>
 </tr>
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  <p style="margin:0in 0in .0001pt 10.0pt;text-indent:-10.0pt;"><font size="2" face="Times New Roman" style="font-size:11.0pt;">&nbsp;</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.5%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:11.0pt;">&nbsp;</font></p>
  </td>
  <td width="5%" valign="bottom" style="padding:0in 0in 0in 0in;width:5.0%;">
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:11.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="92%" valign="bottom" style="padding:0in 0in 0in 0in;width:92.5%;">
  <p style="margin:0in 0in .0001pt 10.0pt;text-indent:-10.0pt;"><font size="2" face="Times New Roman" style="font-size:11.0pt;"><a href="#Item3_QuantitativeAndQualitativeD_230354" title="Click to goto ">Item 3. Quantitative and Qualitative Disclosures about
  Market Risk</a></font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.5%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="5%" valign="bottom" style="padding:0in 0in 0in 0in;width:5.0%;">
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:11.0pt;">35</font></p>
  </td>
 </tr>
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  <td width="92%" valign="bottom" style="padding:0in 0in 0in 0in;width:92.5%;">
  <p style="margin:0in 0in .0001pt 10.0pt;text-indent:-10.0pt;"><font size="2" face="Times New Roman" style="font-size:11.0pt;">&nbsp;</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.5%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:11.0pt;">&nbsp;</font></p>
  </td>
  <td width="5%" valign="bottom" style="padding:0in 0in 0in 0in;width:5.0%;">
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:11.0pt;">&nbsp;</font></p>
  </td>
 </tr>
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  <td width="92%" valign="bottom" style="padding:0in 0in 0in 0in;width:92.5%;">
  <p style="margin:0in 0in .0001pt 10.0pt;text-indent:-10.0pt;"><font size="2" face="Times New Roman" style="font-size:11.0pt;"><a href="#Item4_ControlsAndProcedures_230355" title="Click to goto ">Item 4. Controls and Procedures</a></font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.5%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="5%" valign="bottom" style="padding:0in 0in 0in 0in;width:5.0%;">
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:11.0pt;">35</font></p>
  </td>
 </tr>
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  <td width="92%" valign="bottom" style="padding:0in 0in 0in 0in;width:92.5%;">
  <p style="margin:0in 0in .0001pt 10.0pt;text-indent:-10.0pt;"><font size="2" face="Times New Roman" style="font-size:11.0pt;">&nbsp;</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.5%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:11.0pt;">&nbsp;</font></p>
  </td>
  <td width="5%" valign="bottom" style="padding:0in 0in 0in 0in;width:5.0%;">
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:11.0pt;">&nbsp;</font></p>
  </td>
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  <td width="92%" valign="bottom" style="padding:0in 0in 0in 0in;width:92.5%;">
  <p style="margin:0in 0in .0001pt 10.0pt;text-indent:-10.0pt;"><font size="2" face="Times New Roman" style="font-size:11.0pt;">&nbsp;</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.5%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:11.0pt;">&nbsp;</font></p>
  </td>
  <td width="5%" valign="bottom" style="padding:0in 0in 0in 0in;width:5.0%;">
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:11.0pt;">&nbsp;</font></p>
  </td>
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  <p style="margin:0in 0in .0001pt 10.0pt;text-indent:-10.0pt;"><b><font size="2" face="Times New Roman" style="font-size:11.0pt;font-weight:bold;"><a href="#Partii_001310" title="Click to goto ">PART&nbsp;II -- Other Information</a></font></b></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.5%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="5%" valign="bottom" style="padding:0in 0in 0in 0in;width:5.0%;">
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
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  <p style="margin:0in 0in .0001pt 10.0pt;text-indent:-10.0pt;"><font size="2" face="Times New Roman" style="font-size:11.0pt;">&nbsp;</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.5%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:11.0pt;">&nbsp;</font></p>
  </td>
  <td width="5%" valign="bottom" style="padding:0in 0in 0in 0in;width:5.0%;">
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:11.0pt;">&nbsp;</font></p>
  </td>
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  <td width="92%" valign="bottom" style="padding:0in 0in 0in 0in;width:92.5%;">
  <p style="margin:0in 0in .0001pt 10.0pt;text-indent:-10.0pt;"><font size="2" face="Times New Roman" style="font-size:11.0pt;"><a href="#Item1_LegalProceedings_001326" title="Click to goto ">Item
  1. Legal Proceedings</a></font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.5%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="5%" valign="bottom" style="padding:0in 0in 0in 0in;width:5.0%;">
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:11.0pt;">36</font></p>
  </td>
 </tr>
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  <p style="margin:0in 0in .0001pt 10.0pt;text-indent:-10.0pt;"><font size="2" face="Times New Roman" style="font-size:11.0pt;">&nbsp;</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.5%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:11.0pt;">&nbsp;</font></p>
  </td>
  <td width="5%" valign="bottom" style="padding:0in 0in 0in 0in;width:5.0%;">
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:11.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="92%" valign="bottom" style="padding:0in 0in 0in 0in;width:92.5%;">
  <p style="margin:0in 0in .0001pt 10.0pt;text-indent:-10.0pt;"><font size="2" face="Times New Roman" style="font-size:11.0pt;"><a href="#Item1a_RiskFactors_001328" title="Click to goto ">Item 1A. Risk Factors</a></font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.5%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="5%" valign="bottom" style="padding:0in 0in 0in 0in;width:5.0%;">
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:11.0pt;">36</font></p>
  </td>
 </tr>
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  <td width="92%" valign="bottom" style="padding:0in 0in 0in 0in;width:92.5%;">
  <p style="margin:0in 0in .0001pt 10.0pt;text-indent:-10.0pt;"><font size="2" face="Times New Roman" style="font-size:11.0pt;">&nbsp;</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.5%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:11.0pt;">&nbsp;</font></p>
  </td>
  <td width="5%" valign="bottom" style="padding:0in 0in 0in 0in;width:5.0%;">
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:11.0pt;">&nbsp;</font></p>
  </td>
 </tr>
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  <td width="92%" valign="bottom" style="padding:0in 0in 0in 0in;width:92.5%;">
  <p style="margin:0in 0in .0001pt 10.0pt;text-indent:-10.0pt;"><font size="2" face="Times New Roman" style="font-size:11.0pt;"><a href="#Item6_Exhibits_001330" title="Click to goto ">Item 6. Exhibits</a></font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.5%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="5%" valign="bottom" style="padding:0in 0in 0in 0in;width:5.0%;">
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:11.0pt;">37</font></p>
  </td>
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</table>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">2<a name="PB_2_222335_2897"></a></font></p>

<div style="margin:0in 0in .0001pt;"><hr size="3" width="100%" noshade color="#010101" align="left"></div>

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<div style="font-family:Times New Roman;">

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:11.0pt;font-weight:bold;">LTC
PROPERTIES,&nbsp;INC.</font></b></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:11.0pt;font-weight:bold;">CONSOLIDATED BALANCE SHEETS</font></b><a name="ConsolidatedBalanceSheets_222221"></a></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:11.0pt;">(Amounts in
thousands)</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<table border="0" cellspacing="0" cellpadding="0" width="100%" style="border-collapse:collapse;width:100.0%;">
 <tr>
  <td width="66%" valign="bottom" style="padding:0in 0in 0in 0in;width:66.18%;">
  <p style="margin:0in 0in .0001pt 10.0pt;text-indent:-10.0pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.52%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="14%" colspan="2" valign="bottom" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0in 0in 0in 0in;width:14.64%;">
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">June&nbsp;30,&nbsp;2010</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.02%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="14%" colspan="2" valign="bottom" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0in 0in 0in 0in;width:14.64%;">
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">December&nbsp;31,&nbsp;2009</font></p>
  </td>
 </tr>
 <tr>
  <td width="66%" valign="bottom" style="padding:0in 0in 0in 0in;width:66.18%;">
  <p style="margin:0in 0in .0001pt 10.0pt;text-indent:-10.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">ASSETS</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.52%;">
  <p style="margin:0in 0in .0001pt;"><i><font size="2" face="Times New Roman" style="font-size:1.0pt;font-style:italic;">&nbsp;</font></i></p>
  </td>
  <td width="14%" colspan="2" valign="bottom" style="border:none;padding:0in 0in 0in 0in;width:14.64%;">
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><i><font size="2" face="Times New Roman" style="font-size:11.0pt;font-style:italic;">(unaudited)</font></i></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.02%;">
  <p style="margin:0in 0in .0001pt;"><i><font size="2" face="Times New Roman" style="font-size:1.0pt;font-style:italic;">&nbsp;</font></i></p>
  </td>
  <td width="14%" colspan="2" valign="bottom" style="border:none;padding:0in 0in 0in 0in;width:14.64%;">
  <p align="right" style="margin:0in .3in .0001pt 0in;text-align:right;"><i><font size="2" face="Times New Roman" style="font-size:1.0pt;font-style:italic;">&nbsp;</font></i></p>
  </td>
 </tr>
 <tr>
  <td width="66%" valign="bottom" style="padding:0in 0in 0in 0in;width:66.18%;">
  <p style="margin:0in 0in .0001pt 10.0pt;text-indent:-10.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Real Estate Investments:</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.52%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="11%" valign="bottom" style="padding:0in 0in 0in 0in;width:11.46%;">
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="3%" valign="bottom" style="padding:0in 0in 0in 0in;width:3.18%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.02%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="11%" valign="bottom" style="padding:0in 0in 0in 0in;width:11.98%;">
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.66%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="66%" valign="bottom" style="padding:0in 0in 0in 0in;width:66.18%;">
  <p style="margin:0in 0in .0001pt 20.0pt;text-indent:-10.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Buildings and improvements, net of accumulated
  depreciation and<br>
  amortization: 2010 &#151; $153,003; 2009 &#151; $145,180</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.52%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="11%" valign="bottom" style="padding:0in 0in 0in 0in;width:11.46%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">$368,300</font></p>
  </td>
  <td width="3%" valign="bottom" style="padding:0in 0in 0in 0in;width:3.18%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.02%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="11%" valign="bottom" style="padding:0in 0in 0in 0in;width:11.98%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">$337,719</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.66%;">
  <p style="margin:0in .3in .0001pt 0in;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="66%" valign="bottom" style="padding:0in 0in 0in 0in;width:66.18%;">
  <p style="margin:0in 0in .0001pt 20.0pt;text-indent:-10.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Land</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.52%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="11%" valign="bottom" style="padding:0in 0in 0in 0in;width:11.46%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">38,951</font></p>
  </td>
  <td width="3%" valign="bottom" style="padding:0in 0in 0in 0in;width:3.18%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.02%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="11%" valign="bottom" style="padding:0in 0in 0in 0in;width:11.98%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">36,561</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.66%;">
  <p style="margin:0in .3in .0001pt 0in;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="66%" valign="bottom" style="padding:0in 0in 0in 0in;width:66.18%;">
  <p style="margin:0in 0in .0001pt 20.0pt;text-indent:-10.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Mortgage loans receivable, net of allowance for
  doubtful<br>
  accounts: 2010 &#151; $1,498; 2009 &#151; $704</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.52%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="11%" valign="bottom" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0in 0in 0in 0in;width:11.46%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">67,146</font></p>
  </td>
  <td width="3%" valign="bottom" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0in 0in 0in 0in;width:3.18%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.02%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="11%" valign="bottom" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0in 0in 0in 0in;width:11.98%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">69,883</font></p>
  </td>
  <td width="2%" valign="bottom" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0in 0in 0in 0in;width:2.66%;">
  <p style="margin:0in .3in .0001pt 0in;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="66%" valign="bottom" style="padding:0in 0in 0in 0in;width:66.18%;">
  <p style="margin:0in 0in .0001pt 20.0pt;text-indent:-10.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Real estate investments, net</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.52%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="11%" valign="bottom" style="border:none;padding:0in 0in 0in 0in;width:11.46%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">474,397</font></p>
  </td>
  <td width="3%" valign="bottom" style="border:none;padding:0in 0in 0in 0in;width:3.18%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.02%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="11%" valign="bottom" style="border:none;padding:0in 0in 0in 0in;width:11.98%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">444,163</font></p>
  </td>
  <td width="2%" valign="bottom" style="border:none;padding:0in 0in 0in 0in;width:2.66%;">
  <p style="margin:0in .3in .0001pt 0in;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="66%" valign="bottom" style="padding:0in 0in 0in 0in;width:66.18%;">
  <p style="margin:0in 0in .0001pt 10.0pt;text-indent:-10.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Other Assets:</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.52%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="11%" valign="bottom" style="padding:0in 0in 0in 0in;width:11.46%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="3%" valign="bottom" style="padding:0in 0in 0in 0in;width:3.18%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.02%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="11%" valign="bottom" style="padding:0in 0in 0in 0in;width:11.98%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.66%;">
  <p style="margin:0in .3in .0001pt 0in;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="66%" valign="bottom" style="padding:0in 0in 0in 0in;width:66.18%;">
  <p style="margin:0in 0in .0001pt 20.0pt;text-indent:-10.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Cash and cash equivalents</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.52%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="11%" valign="bottom" style="padding:0in 0in 0in 0in;width:11.46%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">5,498</font></p>
  </td>
  <td width="3%" valign="bottom" style="padding:0in 0in 0in 0in;width:3.18%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.02%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="11%" valign="bottom" style="padding:0in 0in 0in 0in;width:11.98%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">8,856</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.66%;">
  <p style="margin:0in .3in .0001pt 0in;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="66%" valign="bottom" style="padding:0in 0in 0in 0in;width:66.18%;">
  <p style="margin:0in 0in .0001pt 20.0pt;text-indent:-10.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Debt issue costs, net</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.52%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="11%" valign="bottom" style="padding:0in 0in 0in 0in;width:11.46%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">387</font></p>
  </td>
  <td width="3%" valign="bottom" style="padding:0in 0in 0in 0in;width:3.18%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.02%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="11%" valign="bottom" style="padding:0in 0in 0in 0in;width:11.98%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">476</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.66%;">
  <p style="margin:0in .3in .0001pt 0in;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="66%" valign="bottom" style="padding:0in 0in 0in 0in;width:66.18%;">
  <p style="margin:0in 0in .0001pt 20.0pt;text-indent:-10.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Interest receivable</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.52%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="11%" valign="bottom" style="padding:0in 0in 0in 0in;width:11.46%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">1,609</font></p>
  </td>
  <td width="3%" valign="bottom" style="padding:0in 0in 0in 0in;width:3.18%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.02%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="11%" valign="bottom" style="padding:0in 0in 0in 0in;width:11.98%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">1,964</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.66%;">
  <p style="margin:0in .3in .0001pt 0in;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="66%" valign="bottom" style="padding:0in 0in 0in 0in;width:66.18%;">
  <p style="margin:0in 0in .0001pt 20.0pt;text-indent:-10.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Straight-line rent receivable,</font><font size="1" style="font-size:6.5pt;position:relative;top:-3.0pt;">(1)</font><font size="2" style="font-size:10.0pt;">&nbsp;net of allowance for
  doubtful<br>
  accounts: 2010 &#151; $1,053; 2009 &#151; $631</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.52%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="11%" valign="bottom" style="padding:0in 0in 0in 0in;width:11.46%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">18,747</font></p>
  </td>
  <td width="3%" valign="bottom" style="padding:0in 0in 0in 0in;width:3.18%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.02%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="11%" valign="bottom" style="padding:0in 0in 0in 0in;width:11.98%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">17,309</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.66%;">
  <p style="margin:0in .3in .0001pt 0in;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="66%" valign="bottom" style="padding:0in 0in 0in 0in;width:66.18%;">
  <p style="margin:0in 0in .0001pt 20.0pt;text-indent:-10.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Prepaid expenses and other assets</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.52%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="11%" valign="bottom" style="padding:0in 0in 0in 0in;width:11.46%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">8,260</font></p>
  </td>
  <td width="3%" valign="bottom" style="padding:0in 0in 0in 0in;width:3.18%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.02%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="11%" valign="bottom" style="padding:0in 0in 0in 0in;width:11.98%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">8,663</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.66%;">
  <p style="margin:0in .3in .0001pt 0in;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="66%" valign="bottom" style="padding:0in 0in 0in 0in;width:66.18%;">
  <p style="margin:0in 0in .0001pt 20.0pt;text-indent:-10.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Notes receivable</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.52%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="11%" valign="bottom" style="padding:0in 0in 0in 0in;width:11.46%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">1,720</font></p>
  </td>
  <td width="3%" valign="bottom" style="padding:0in 0in 0in 0in;width:3.18%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.02%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="11%" valign="bottom" style="padding:0in 0in 0in 0in;width:11.98%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">2,689</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.66%;">
  <p style="margin:0in .3in .0001pt 0in;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="66%" valign="bottom" style="padding:0in 0in 0in 0in;width:66.18%;">
  <p style="margin:0in 0in .0001pt 20.0pt;text-indent:-10.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Marketable securities</font><font size="1" style="font-size:6.5pt;position:relative;top:-3.0pt;">(2)</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.52%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="11%" valign="bottom" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0in 0in 0in 0in;width:11.46%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">6,476</font></p>
  </td>
  <td width="3%" valign="bottom" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0in 0in 0in 0in;width:3.18%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.02%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="11%" valign="bottom" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0in 0in 0in 0in;width:11.98%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">6,473</font></p>
  </td>
  <td width="2%" valign="bottom" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0in 0in 0in 0in;width:2.66%;">
  <p style="margin:0in .3in .0001pt 0in;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="66%" valign="bottom" style="padding:0in 0in 0in 0in;width:66.18%;">
  <p style="margin:0in 0in .0001pt 40.0pt;text-indent:-10.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Total Assets</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.52%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="11%" valign="bottom" style="border:none;border-bottom:double windowtext 2.25pt;padding:0in 0in 0in 0in;width:11.46%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">$517,094</font></p>
  </td>
  <td width="3%" valign="bottom" style="border:none;border-bottom:double windowtext 2.25pt;padding:0in 0in 0in 0in;width:3.18%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.02%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="11%" valign="bottom" style="border:none;border-bottom:double windowtext 2.25pt;padding:0in 0in 0in 0in;width:11.98%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">$490,593</font></p>
  </td>
  <td width="2%" valign="bottom" style="border:none;border-bottom:double windowtext 2.25pt;padding:0in 0in 0in 0in;width:2.66%;">
  <p style="margin:0in .3in .0001pt 0in;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="66%" valign="bottom" style="padding:0in 0in 0in 0in;width:66.18%;">
  <p style="margin:0in 0in .0001pt 10.0pt;text-indent:-10.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.52%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="11%" valign="bottom" style="border:none;padding:0in 0in 0in 0in;width:11.46%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="3%" valign="bottom" style="border:none;padding:0in 0in 0in 0in;width:3.18%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.02%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="11%" valign="bottom" style="border:none;padding:0in 0in 0in 0in;width:11.98%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="2%" valign="bottom" style="border:none;padding:0in 0in 0in 0in;width:2.66%;">
  <p style="margin:0in .3in .0001pt 0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="66%" valign="bottom" style="padding:0in 0in 0in 0in;width:66.18%;">
  <p style="margin:0in 0in .0001pt 10.0pt;text-indent:-10.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">LIABILITIES</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.52%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="11%" valign="bottom" style="padding:0in 0in 0in 0in;width:11.46%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="3%" valign="bottom" style="padding:0in 0in 0in 0in;width:3.18%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.02%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="11%" valign="bottom" style="padding:0in 0in 0in 0in;width:11.98%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.66%;">
  <p style="margin:0in .3in .0001pt 0in;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="66%" valign="bottom" style="padding:0in 0in 0in 0in;width:66.18%;">
  <p style="margin:0in 0in .0001pt 10.0pt;text-indent:-10.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Bank borrowings</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.52%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="11%" valign="bottom" style="padding:0in 0in 0in 0in;width:11.46%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">$&nbsp;&nbsp;41,000</font></p>
  </td>
  <td width="3%" valign="bottom" style="padding:0in 0in 0in 0in;width:3.18%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.02%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="11%" valign="bottom" style="padding:0in 0in 0in 0in;width:11.98%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">$&nbsp;&nbsp;13,500</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.66%;">
  <p style="margin:0in .3in .0001pt 0in;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="66%" valign="bottom" style="padding:0in 0in 0in 0in;width:66.18%;">
  <p style="margin:0in 0in .0001pt 10.0pt;text-indent:-10.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Mortgage loan payable</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.52%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="11%" valign="bottom" style="padding:0in 0in 0in 0in;width:11.46%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#151;</font></p>
  </td>
  <td width="3%" valign="bottom" style="padding:0in 0in 0in 0in;width:3.18%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.02%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="11%" valign="bottom" style="padding:0in 0in 0in 0in;width:11.98%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">7,685</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.66%;">
  <p style="margin:0in .3in .0001pt 0in;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="66%" valign="bottom" style="padding:0in 0in 0in 0in;width:66.18%;">
  <p style="margin:0in 0in .0001pt 10.0pt;text-indent:-10.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Bonds payable</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.52%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="11%" valign="bottom" style="padding:0in 0in 0in 0in;width:11.46%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">3,730</font></p>
  </td>
  <td width="3%" valign="bottom" style="padding:0in 0in 0in 0in;width:3.18%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.02%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="11%" valign="bottom" style="padding:0in 0in 0in 0in;width:11.98%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">4,225</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.66%;">
  <p style="margin:0in .3in .0001pt 0in;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="66%" valign="bottom" style="padding:0in 0in 0in 0in;width:66.18%;">
  <p style="margin:0in 0in .0001pt 10.0pt;text-indent:-10.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Accrued interest</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.52%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="11%" valign="bottom" style="padding:0in 0in 0in 0in;width:11.46%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">100</font></p>
  </td>
  <td width="3%" valign="bottom" style="padding:0in 0in 0in 0in;width:3.18%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.02%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="11%" valign="bottom" style="padding:0in 0in 0in 0in;width:11.98%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">102</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.66%;">
  <p style="margin:0in .3in .0001pt 0in;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="66%" valign="bottom" style="padding:0in 0in 0in 0in;width:66.18%;">
  <p style="margin:0in 0in .0001pt 10.0pt;text-indent:-10.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Accrued expenses and other liabilities</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.52%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="11%" valign="bottom" style="padding:0in 0in 0in 0in;width:11.46%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">8,407</font></p>
  </td>
  <td width="3%" valign="bottom" style="padding:0in 0in 0in 0in;width:3.18%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.02%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="11%" valign="bottom" style="padding:0in 0in 0in 0in;width:11.98%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">7,801</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.66%;">
  <p style="margin:0in .3in .0001pt 0in;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="66%" valign="bottom" style="padding:0in 0in 0in 0in;width:66.18%;">
  <p style="margin:0in 0in .0001pt 10.0pt;text-indent:-10.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Distributions payable</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.52%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="11%" valign="bottom" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0in 0in 0in 0in;width:11.46%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">2,967</font></p>
  </td>
  <td width="3%" valign="bottom" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0in 0in 0in 0in;width:3.18%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.02%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="11%" valign="bottom" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0in 0in 0in 0in;width:11.98%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">2,967</font></p>
  </td>
  <td width="2%" valign="bottom" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0in 0in 0in 0in;width:2.66%;">
  <p style="margin:0in .3in .0001pt 0in;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="66%" valign="bottom" style="padding:0in 0in 0in 0in;width:66.18%;">
  <p style="margin:0in 0in .0001pt 40.0pt;text-indent:-10.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Total Liabilities</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.52%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="11%" valign="bottom" style="border:none;padding:0in 0in 0in 0in;width:11.46%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">56,204</font></p>
  </td>
  <td width="3%" valign="bottom" style="border:none;padding:0in 0in 0in 0in;width:3.18%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.02%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="11%" valign="bottom" style="border:none;padding:0in 0in 0in 0in;width:11.98%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">36,280</font></p>
  </td>
  <td width="2%" valign="bottom" style="border:none;padding:0in 0in 0in 0in;width:2.66%;">
  <p style="margin:0in .3in .0001pt 0in;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="66%" valign="bottom" style="padding:0in 0in 0in 0in;width:66.18%;">
  <p style="margin:0in 0in .0001pt 10.0pt;text-indent:-10.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.52%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="11%" valign="bottom" style="padding:0in 0in 0in 0in;width:11.46%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="3%" valign="bottom" style="padding:0in 0in 0in 0in;width:3.18%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.02%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="11%" valign="bottom" style="padding:0in 0in 0in 0in;width:11.98%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.66%;">
  <p style="margin:0in .3in .0001pt 0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="66%" valign="bottom" style="padding:0in 0in 0in 0in;width:66.18%;">
  <p style="margin:0in 0in .0001pt 10.0pt;text-indent:-10.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">EQUITY</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.52%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="11%" valign="bottom" style="padding:0in 0in 0in 0in;width:11.46%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="3%" valign="bottom" style="padding:0in 0in 0in 0in;width:3.18%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.02%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="11%" valign="bottom" style="padding:0in 0in 0in 0in;width:11.98%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.66%;">
  <p style="margin:0in .3in .0001pt 0in;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="66%" valign="bottom" style="padding:0in 0in 0in 0in;width:66.18%;">
  <p style="margin:0in 0in .0001pt 20.0pt;text-indent:-10.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Stockholders&#146; equity:</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.52%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="11%" valign="bottom" style="padding:0in 0in 0in 0in;width:11.46%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="3%" valign="bottom" style="padding:0in 0in 0in 0in;width:3.18%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.02%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="11%" valign="bottom" style="padding:0in 0in 0in 0in;width:11.98%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.66%;">
  <p style="margin:0in .3in .0001pt 0in;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="66%" valign="bottom" style="padding:0in 0in 0in 0in;width:66.18%;">
  <p style="margin:0in 0in .0001pt 30.0pt;text-indent:-10.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Preferred stock $0.01 par value; 15,000 shares
  authorized;<br>
  shares issued and outstanding: 2010 &#151; 7,932; 2009 &#151; 7,932</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.52%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="11%" valign="bottom" style="padding:0in 0in 0in 0in;width:11.46%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">186,801</font></p>
  </td>
  <td width="3%" valign="bottom" style="padding:0in 0in 0in 0in;width:3.18%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.02%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="11%" valign="bottom" style="padding:0in 0in 0in 0in;width:11.98%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">186,801</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.66%;">
  <p style="margin:0in .3in .0001pt 0in;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="66%" valign="bottom" style="padding:0in 0in 0in 0in;width:66.18%;">
  <p style="margin:0in 0in .0001pt 30.0pt;text-indent:-10.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Common stock: $0.01 par value; 45,000 shares
  authorized; <br>
  shares issued and outstanding: 2010 &#151; 23,799; 2009 &#151; 23,312</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.52%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="11%" valign="bottom" style="padding:0in 0in 0in 0in;width:11.46%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">238</font></p>
  </td>
  <td width="3%" valign="bottom" style="padding:0in 0in 0in 0in;width:3.18%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.02%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="11%" valign="bottom" style="padding:0in 0in 0in 0in;width:11.98%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">233</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.66%;">
  <p style="margin:0in .3in .0001pt 0in;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="66%" valign="bottom" style="padding:0in 0in 0in 0in;width:66.18%;">
  <p style="margin:0in 0in .0001pt 30.0pt;text-indent:-10.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Capital in excess of par value</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.52%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="11%" valign="bottom" style="padding:0in 0in 0in 0in;width:11.46%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">336,692</font></p>
  </td>
  <td width="3%" valign="bottom" style="padding:0in 0in 0in 0in;width:3.18%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.02%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="11%" valign="bottom" style="padding:0in 0in 0in 0in;width:11.98%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">326,163</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.66%;">
  <p style="margin:0in .3in .0001pt 0in;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="66%" valign="bottom" style="padding:0in 0in 0in 0in;width:66.18%;">
  <p style="margin:0in 0in .0001pt 30.0pt;text-indent:-10.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Cumulative net income</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.52%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="11%" valign="bottom" style="padding:0in 0in 0in 0in;width:11.46%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">599,733</font></p>
  </td>
  <td width="3%" valign="bottom" style="padding:0in 0in 0in 0in;width:3.18%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.02%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="11%" valign="bottom" style="padding:0in 0in 0in 0in;width:11.98%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">577,629</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.66%;">
  <p style="margin:0in .3in .0001pt 0in;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="66%" valign="bottom" style="padding:0in 0in 0in 0in;width:66.18%;">
  <p style="margin:0in 0in .0001pt 30.0pt;text-indent:-10.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Other</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.52%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="11%" valign="bottom" style="padding:0in 0in 0in 0in;width:11.46%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">334</font></p>
  </td>
  <td width="3%" valign="bottom" style="padding:0in 0in 0in 0in;width:3.18%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.02%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="11%" valign="bottom" style="padding:0in 0in 0in 0in;width:11.98%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">390</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.66%;">
  <p style="margin:0in .3in .0001pt 0in;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="66%" valign="bottom" style="padding:0in 0in 0in 0in;width:66.18%;">
  <p style="margin:0in 0in .0001pt 30.0pt;text-indent:-10.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Cumulative distributions</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.52%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="11%" valign="bottom" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0in 0in 0in 0in;width:11.46%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(664,870</font></p>
  </td>
  <td width="3%" valign="bottom" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0in 0in 0in 0in;width:3.18%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">)</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.02%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="11%" valign="bottom" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0in 0in 0in 0in;width:11.98%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(638,884</font></p>
  </td>
  <td width="2%" valign="bottom" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0in 0in 0in 0in;width:2.66%;">
  <p style="margin:0in .25in .0001pt 0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">)</font></p>
  </td>
 </tr>
 <tr>
  <td width="66%" valign="bottom" style="padding:0in 0in 0in 0in;width:66.18%;">
  <p style="margin:0in 0in .0001pt 40.0pt;text-indent:-10.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Total LTC Properties,&nbsp;Inc. Stockholders&#146;
  Equity</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.52%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="11%" valign="bottom" style="border:none;padding:0in 0in 0in 0in;width:11.46%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">458,928</font></p>
  </td>
  <td width="3%" valign="bottom" style="border:none;padding:0in 0in 0in 0in;width:3.18%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.02%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="11%" valign="bottom" style="border:none;padding:0in 0in 0in 0in;width:11.98%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">452,332</font></p>
  </td>
  <td width="2%" valign="bottom" style="border:none;padding:0in 0in 0in 0in;width:2.66%;">
  <p style="margin:0in .3in .0001pt 0in;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="66%" valign="bottom" style="padding:0in 0in 0in 0in;width:66.18%;">
  <p style="margin:0in 0in .0001pt 20.0pt;text-indent:-10.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.52%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="11%" valign="bottom" style="padding:0in 0in 0in 0in;width:11.46%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="3%" valign="bottom" style="padding:0in 0in 0in 0in;width:3.18%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.02%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="11%" valign="bottom" style="padding:0in 0in 0in 0in;width:11.98%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.66%;">
  <p style="margin:0in .3in .0001pt 0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="66%" valign="bottom" style="padding:0in 0in 0in 0in;width:66.18%;">
  <p style="margin:0in 0in .0001pt 20.0pt;text-indent:-10.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Non-controlling interests</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.52%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="11%" valign="bottom" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0in 0in 0in 0in;width:11.46%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">1,962</font></p>
  </td>
  <td width="3%" valign="bottom" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0in 0in 0in 0in;width:3.18%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.02%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="11%" valign="bottom" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0in 0in 0in 0in;width:11.98%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">1,981</font></p>
  </td>
  <td width="2%" valign="bottom" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0in 0in 0in 0in;width:2.66%;">
  <p style="margin:0in .3in .0001pt 0in;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="66%" valign="bottom" style="padding:0in 0in 0in 0in;width:66.18%;">
  <p style="margin:0in 0in .0001pt 40.0pt;text-indent:-10.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Total Equity</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.52%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="11%" valign="bottom" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0in 0in 0in 0in;width:11.46%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">460,890</font></p>
  </td>
  <td width="3%" valign="bottom" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0in 0in 0in 0in;width:3.18%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.02%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="11%" valign="bottom" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0in 0in 0in 0in;width:11.98%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">454,313</font></p>
  </td>
  <td width="2%" valign="bottom" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0in 0in 0in 0in;width:2.66%;">
  <p style="margin:0in .3in .0001pt 0in;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="66%" valign="bottom" style="padding:0in 0in 0in 0in;width:66.18%;">
  <p style="margin:0in 0in .0001pt 40.0pt;text-indent:-10.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Total Liabilities and Equity</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.52%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="11%" valign="bottom" style="border:none;border-bottom:double windowtext 2.25pt;padding:0in 0in 0in 0in;width:11.46%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">$517,094</font></p>
  </td>
  <td width="3%" valign="bottom" style="border:none;border-bottom:double windowtext 2.25pt;padding:0in 0in 0in 0in;width:3.18%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.02%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="11%" valign="bottom" style="border:none;border-bottom:double windowtext 2.25pt;padding:0in 0in 0in 0in;width:11.98%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">$490,593</font></p>
  </td>
  <td width="2%" valign="bottom" style="border:none;border-bottom:double windowtext 2.25pt;padding:0in 0in 0in 0in;width:2.66%;">
  <p style="margin:0in .3in .0001pt 0in;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
 </tr>
</table>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<div style="margin:0in 0in .0001pt;"><hr size="1" width="15%" noshade color="black" align="left"></div>

<p style="margin:0in 0in .0001pt .25in;text-indent:-.25in;"><font size="1" face="Times New Roman" style="font-size:8.0pt;">(1)</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font size="1" style="font-size:8.0pt;">On June&nbsp;30, 2010 and December&nbsp;31,
2009, we had $2,655,000 and $2,480,000, respectively, in straight-line rent
receivable from a lessee that qualifies as a related party because the lessee&#146;s
Chief Executive Officer is on our Board of Directors.&#160; See <i>Note 9. Transactions with
Related Party</i> for further discussion.</font></p>

<p style="margin:0in 0in .0001pt .25in;text-indent:-.25in;"><font size="1" face="Times New Roman" style="font-size:8.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt .25in;text-indent:-.25in;"><font size="1" face="Times New Roman" style="font-size:8.0pt;">(2)</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font size="1" style="font-size:8.0pt;">At June&nbsp;30, 2010 and December&nbsp;31,
2009, we had a $6,500,000 face value investment in marketable securities issued
by an entity that qualifies as a related party because the entity&#146;s Chief
Executive Officer is on our Board of Directors.&#160;
See <i>Note 9. Transactions with Related Party</i>
for further discussion.</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="1" face="Times New Roman" style="font-size:8.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><i><font size="1" face="Times New Roman" style="font-size:9.0pt;font-style:italic;">See accompanying notes.</font></i></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">3<a name="PB_3_220606_7056"></a></font></p>

<div style="margin:0in 0in .0001pt;"><hr size="3" width="100%" noshade color="#010101" align="left"></div>

</div>
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<br clear="all" style="page-break-before:always;">


<div style="font-family:Times New Roman;">

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:11.0pt;font-weight:bold;">LTC PROPERTIES,&nbsp;INC.</font></b></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:11.0pt;font-weight:bold;">CONSOLIDATED STATEMENTS OF INCOME</font></b><a name="ConsolidatedStatementsOfIncome_222224"></a></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:11.0pt;">(Amounts in thousands, except per share amounts)</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><i><font size="2" face="Times New Roman" style="font-size:11.0pt;font-style:italic;">(unaudited)</font></i></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><i><font size="2" face="Times New Roman" style="font-size:10.0pt;font-style:italic;">&nbsp;</font></i></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><i><font size="2" face="Times New Roman" style="font-size:10.0pt;font-style:italic;">&nbsp;</font></i></p>

<table border="0" cellspacing="0" cellpadding="0" width="100%" style="border-collapse:collapse;width:100.0%;">
 <tr>
  <td width="42%" valign="bottom" style="padding:0in 0in 0in 0in;width:42.0%;">
  <p style="margin:0in 0in .0001pt 10.0pt;text-indent:-10.0pt;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.5%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="26%" colspan="5" valign="bottom" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0in 0in 0in 0in;width:26.52%;">
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">Three Months
  Ended <br>
  June&nbsp;30,</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.5%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="26%" colspan="5" valign="bottom" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0in 0in 0in 0in;width:26.48%;">
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">Six Months Ended <br>
  June&nbsp;30,</font></p>
  </td>
 </tr>
 <tr>
  <td width="42%" valign="bottom" style="padding:0in 0in 0in 0in;width:42.0%;">
  <p style="margin:0in 0in .0001pt 10.0pt;text-indent:-10.0pt;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.5%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="12%" colspan="2" valign="bottom" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0in 0in 0in 0in;width:12.02%;">
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">2010</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.5%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="12%" colspan="2" valign="bottom" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0in 0in 0in 0in;width:12.0%;">
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">2009</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.5%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="12%" colspan="2" valign="bottom" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0in 0in 0in 0in;width:12.02%;">
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">2010</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.5%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="11%" colspan="2" valign="bottom" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0in 0in 0in 0in;width:11.96%;">
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">2009</font></p>
  </td>
 </tr>
 <tr>
  <td width="42%" valign="bottom" style="padding:0in 0in 0in 0in;width:42.0%;">
  <p style="margin:0in 0in .0001pt 10.0pt;text-indent:-10.0pt;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">Revenues:</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.5%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="8%" valign="bottom" style="border:none;padding:0in 0in 0in 0in;width:8.26%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="3%" valign="bottom" style="border:none;border-top:solid windowtext 1.0pt;padding:0in 0in 0in 0in;width:3.76%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.5%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="8%" valign="bottom" style="border:none;padding:0in 0in 0in 0in;width:8.5%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="3%" valign="bottom" style="border:none;border-top:solid windowtext 1.0pt;padding:0in 0in 0in 0in;width:3.5%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.5%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="8%" valign="bottom" style="border:none;padding:0in 0in 0in 0in;width:8.76%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="3%" valign="bottom" style="border:none;border-top:solid windowtext 1.0pt;padding:0in 0in 0in 0in;width:3.26%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.5%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="8%" valign="bottom" style="border:none;padding:0in 0in 0in 0in;width:8.64%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="3%" valign="bottom" style="border:none;border-top:solid windowtext 1.0pt;padding:0in 0in 0in 0in;width:3.32%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="42%" valign="bottom" style="padding:0in 0in 0in 0in;width:42.0%;">
  <p style="margin:0in 0in .0001pt 20.0pt;text-indent:-10.0pt;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">Rental
  income </font><font size="1" style="font-size:6.0pt;position:relative;top:-2.0pt;">(1)</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.5%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="8%" valign="bottom" style="padding:0in 0in 0in 0in;width:8.26%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">$16,050</font></p>
  </td>
  <td width="3%" valign="bottom" style="padding:0in 0in 0in 0in;width:3.76%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.5%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="8%" valign="bottom" style="padding:0in 0in 0in 0in;width:8.5%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">$14,951</font></p>
  </td>
  <td width="3%" valign="bottom" style="padding:0in 0in 0in 0in;width:3.5%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.5%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="8%" valign="bottom" style="padding:0in 0in 0in 0in;width:8.76%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">$31,660</font></p>
  </td>
  <td width="3%" valign="bottom" style="padding:0in 0in 0in 0in;width:3.26%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.5%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="8%" valign="bottom" style="padding:0in 0in 0in 0in;width:8.64%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">$29,981</font></p>
  </td>
  <td width="3%" valign="bottom" style="padding:0in 0in 0in 0in;width:3.32%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="42%" valign="bottom" style="padding:0in 0in 0in 0in;width:42.0%;">
  <p style="margin:0in 0in .0001pt 20.0pt;text-indent:-10.0pt;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">Interest
  income from mortgage loans</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.5%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="8%" valign="bottom" style="padding:0in 0in 0in 0in;width:8.26%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">1,836</font></p>
  </td>
  <td width="3%" valign="bottom" style="padding:0in 0in 0in 0in;width:3.76%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.5%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="8%" valign="bottom" style="padding:0in 0in 0in 0in;width:8.5%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">2,106</font></p>
  </td>
  <td width="3%" valign="bottom" style="padding:0in 0in 0in 0in;width:3.5%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.5%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="8%" valign="bottom" style="padding:0in 0in 0in 0in;width:8.76%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">3,815</font></p>
  </td>
  <td width="3%" valign="bottom" style="padding:0in 0in 0in 0in;width:3.26%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.5%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="8%" valign="bottom" style="padding:0in 0in 0in 0in;width:8.64%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">4,477</font></p>
  </td>
  <td width="3%" valign="bottom" style="padding:0in 0in 0in 0in;width:3.32%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="42%" valign="bottom" style="padding:0in 0in 0in 0in;width:42.0%;">
  <p style="margin:0in 0in .0001pt 20.0pt;text-indent:-10.0pt;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">Interest
  and other income </font><font size="1" style="font-size:6.0pt;position:relative;top:-2.0pt;">(2)</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.5%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="8%" valign="bottom" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0in 0in 0in 0in;width:8.26%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">301</font></p>
  </td>
  <td width="3%" valign="bottom" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0in 0in 0in 0in;width:3.76%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.5%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="8%" valign="bottom" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0in 0in 0in 0in;width:8.5%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">328</font></p>
  </td>
  <td width="3%" valign="bottom" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0in 0in 0in 0in;width:3.5%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.5%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="8%" valign="bottom" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0in 0in 0in 0in;width:8.76%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">577</font></p>
  </td>
  <td width="3%" valign="bottom" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0in 0in 0in 0in;width:3.26%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.5%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="8%" valign="bottom" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0in 0in 0in 0in;width:8.64%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">643</font></p>
  </td>
  <td width="3%" valign="bottom" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0in 0in 0in 0in;width:3.32%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="42%" valign="bottom" style="padding:0in 0in 0in 0in;width:42.0%;">
  <p style="margin:0in 0in .0001pt 40.0pt;text-indent:-10.0pt;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">Total
  revenues</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.5%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="8%" valign="bottom" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0in 0in 0in 0in;width:8.26%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">18,187</font></p>
  </td>
  <td width="3%" valign="bottom" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0in 0in 0in 0in;width:3.76%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.5%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="8%" valign="bottom" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0in 0in 0in 0in;width:8.5%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">17,385</font></p>
  </td>
  <td width="3%" valign="bottom" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0in 0in 0in 0in;width:3.5%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.5%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="8%" valign="bottom" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0in 0in 0in 0in;width:8.76%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">36,052</font></p>
  </td>
  <td width="3%" valign="bottom" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0in 0in 0in 0in;width:3.26%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.5%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="8%" valign="bottom" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0in 0in 0in 0in;width:8.64%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">35,101</font></p>
  </td>
  <td width="3%" valign="bottom" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0in 0in 0in 0in;width:3.32%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="42%" valign="bottom" style="padding:0in 0in 0in 0in;width:42.0%;">
  <p style="margin:0in 0in .0001pt 10.0pt;text-indent:-10.0pt;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">&nbsp;</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.5%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">&nbsp;</font></p>
  </td>
  <td width="8%" valign="bottom" style="border:none;padding:0in 0in 0in 0in;width:8.26%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">&nbsp;</font></p>
  </td>
  <td width="3%" valign="bottom" style="border:none;padding:0in 0in 0in 0in;width:3.76%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">&nbsp;</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.5%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">&nbsp;</font></p>
  </td>
  <td width="8%" valign="bottom" style="border:none;padding:0in 0in 0in 0in;width:8.5%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">&nbsp;</font></p>
  </td>
  <td width="3%" valign="bottom" style="border:none;padding:0in 0in 0in 0in;width:3.5%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">&nbsp;</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.5%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">&nbsp;</font></p>
  </td>
  <td width="8%" valign="bottom" style="border:none;padding:0in 0in 0in 0in;width:8.76%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">&nbsp;</font></p>
  </td>
  <td width="3%" valign="bottom" style="border:none;padding:0in 0in 0in 0in;width:3.26%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">&nbsp;</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.5%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">&nbsp;</font></p>
  </td>
  <td width="8%" valign="bottom" style="border:none;padding:0in 0in 0in 0in;width:8.64%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">&nbsp;</font></p>
  </td>
  <td width="3%" valign="bottom" style="border:none;padding:0in 0in 0in 0in;width:3.32%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="42%" valign="bottom" style="padding:0in 0in 0in 0in;width:42.0%;">
  <p style="margin:0in 0in .0001pt 10.0pt;text-indent:-10.0pt;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">Expenses:</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.5%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="8%" valign="bottom" style="padding:0in 0in 0in 0in;width:8.26%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="3%" valign="bottom" style="padding:0in 0in 0in 0in;width:3.76%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.5%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="8%" valign="bottom" style="padding:0in 0in 0in 0in;width:8.5%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="3%" valign="bottom" style="padding:0in 0in 0in 0in;width:3.5%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.5%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="8%" valign="bottom" style="padding:0in 0in 0in 0in;width:8.76%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="3%" valign="bottom" style="padding:0in 0in 0in 0in;width:3.26%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.5%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="8%" valign="bottom" style="padding:0in 0in 0in 0in;width:8.64%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="3%" valign="bottom" style="padding:0in 0in 0in 0in;width:3.32%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="42%" valign="bottom" style="padding:0in 0in 0in 0in;width:42.0%;">
  <p style="margin:0in 0in .0001pt 20.0pt;text-indent:-10.0pt;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">Interest
  expense</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.5%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="8%" valign="bottom" style="padding:0in 0in 0in 0in;width:8.26%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">419</font></p>
  </td>
  <td width="3%" valign="bottom" style="padding:0in 0in 0in 0in;width:3.76%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.5%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="8%" valign="bottom" style="padding:0in 0in 0in 0in;width:8.5%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">814</font></p>
  </td>
  <td width="3%" valign="bottom" style="padding:0in 0in 0in 0in;width:3.5%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.5%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="8%" valign="bottom" style="padding:0in 0in 0in 0in;width:8.76%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">820</font></p>
  </td>
  <td width="3%" valign="bottom" style="padding:0in 0in 0in 0in;width:3.26%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.5%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="8%" valign="bottom" style="padding:0in 0in 0in 0in;width:8.64%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">1,706</font></p>
  </td>
  <td width="3%" valign="bottom" style="padding:0in 0in 0in 0in;width:3.32%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="42%" valign="bottom" style="padding:0in 0in 0in 0in;width:42.0%;">
  <p style="margin:0in 0in .0001pt 20.0pt;text-indent:-10.0pt;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">Depreciation
  and amortization</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.5%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="8%" valign="bottom" style="padding:0in 0in 0in 0in;width:8.26%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">4,014</font></p>
  </td>
  <td width="3%" valign="bottom" style="padding:0in 0in 0in 0in;width:3.76%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.5%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="8%" valign="bottom" style="padding:0in 0in 0in 0in;width:8.5%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">3,694</font></p>
  </td>
  <td width="3%" valign="bottom" style="padding:0in 0in 0in 0in;width:3.5%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.5%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="8%" valign="bottom" style="padding:0in 0in 0in 0in;width:8.76%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">7,874</font></p>
  </td>
  <td width="3%" valign="bottom" style="padding:0in 0in 0in 0in;width:3.26%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.5%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="8%" valign="bottom" style="padding:0in 0in 0in 0in;width:8.64%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">7,395</font></p>
  </td>
  <td width="3%" valign="bottom" style="padding:0in 0in 0in 0in;width:3.32%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="42%" valign="bottom" style="padding:0in 0in 0in 0in;width:42.0%;">
  <p style="margin:0in 0in .0001pt 20.0pt;text-indent:-10.0pt;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">Provisions
  for doubtful accounts</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.5%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="8%" valign="bottom" style="padding:0in 0in 0in 0in;width:8.26%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">194</font></p>
  </td>
  <td width="3%" valign="bottom" style="padding:0in 0in 0in 0in;width:3.76%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.5%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="8%" valign="bottom" style="padding:0in 0in 0in 0in;width:8.5%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">219</font></p>
  </td>
  <td width="3%" valign="bottom" style="padding:0in 0in 0in 0in;width:3.5%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.5%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="8%" valign="bottom" style="padding:0in 0in 0in 0in;width:8.76%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">1,255</font></p>
  </td>
  <td width="3%" valign="bottom" style="padding:0in 0in 0in 0in;width:3.26%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.5%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="8%" valign="bottom" style="padding:0in 0in 0in 0in;width:8.64%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">371</font></p>
  </td>
  <td width="3%" valign="bottom" style="padding:0in 0in 0in 0in;width:3.32%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="42%" valign="bottom" style="padding:0in 0in 0in 0in;width:42.0%;">
  <p style="margin:0in 0in .0001pt 20.0pt;text-indent:-10.0pt;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">Operating
  and other expenses</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.5%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="8%" valign="bottom" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0in 0in 0in 0in;width:8.26%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">1,930</font></p>
  </td>
  <td width="3%" valign="bottom" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0in 0in 0in 0in;width:3.76%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.5%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="8%" valign="bottom" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0in 0in 0in 0in;width:8.5%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">1,918</font></p>
  </td>
  <td width="3%" valign="bottom" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0in 0in 0in 0in;width:3.5%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.5%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="8%" valign="bottom" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0in 0in 0in 0in;width:8.76%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">3,903</font></p>
  </td>
  <td width="3%" valign="bottom" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0in 0in 0in 0in;width:3.26%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.5%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="8%" valign="bottom" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0in 0in 0in 0in;width:8.64%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">3,651</font></p>
  </td>
  <td width="3%" valign="bottom" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0in 0in 0in 0in;width:3.32%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="42%" valign="bottom" style="padding:0in 0in 0in 0in;width:42.0%;">
  <p style="margin:0in 0in .0001pt 40.0pt;text-indent:-10.0pt;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">Total
  expenses</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.5%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="8%" valign="bottom" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0in 0in 0in 0in;width:8.26%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">6,557</font></p>
  </td>
  <td width="3%" valign="bottom" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0in 0in 0in 0in;width:3.76%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.5%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="8%" valign="bottom" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0in 0in 0in 0in;width:8.5%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">6,645</font></p>
  </td>
  <td width="3%" valign="bottom" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0in 0in 0in 0in;width:3.5%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.5%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="8%" valign="bottom" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0in 0in 0in 0in;width:8.76%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">13,852</font></p>
  </td>
  <td width="3%" valign="bottom" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0in 0in 0in 0in;width:3.26%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.5%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="8%" valign="bottom" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0in 0in 0in 0in;width:8.64%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">13,123</font></p>
  </td>
  <td width="3%" valign="bottom" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0in 0in 0in 0in;width:3.32%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="42%" valign="bottom" style="padding:0in 0in 0in 0in;width:42.0%;">
  <p style="margin:0in 0in .0001pt 10.0pt;text-indent:-10.0pt;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">&nbsp;</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.5%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">&nbsp;</font></p>
  </td>
  <td width="8%" valign="bottom" style="border:none;padding:0in 0in 0in 0in;width:8.26%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">&nbsp;</font></p>
  </td>
  <td width="3%" valign="bottom" style="border:none;padding:0in 0in 0in 0in;width:3.76%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">&nbsp;</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.5%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">&nbsp;</font></p>
  </td>
  <td width="8%" valign="bottom" style="border:none;padding:0in 0in 0in 0in;width:8.5%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">&nbsp;</font></p>
  </td>
  <td width="3%" valign="bottom" style="border:none;padding:0in 0in 0in 0in;width:3.5%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">&nbsp;</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.5%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">&nbsp;</font></p>
  </td>
  <td width="8%" valign="bottom" style="border:none;padding:0in 0in 0in 0in;width:8.76%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">&nbsp;</font></p>
  </td>
  <td width="3%" valign="bottom" style="border:none;padding:0in 0in 0in 0in;width:3.26%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">&nbsp;</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.5%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">&nbsp;</font></p>
  </td>
  <td width="8%" valign="bottom" style="border:none;padding:0in 0in 0in 0in;width:8.64%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">&nbsp;</font></p>
  </td>
  <td width="3%" valign="bottom" style="border:none;padding:0in 0in 0in 0in;width:3.32%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="42%" valign="bottom" style="padding:0in 0in 0in 0in;width:42.0%;">
  <p style="margin:0in 0in .0001pt 10.0pt;text-indent:-10.0pt;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">Net
  income</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.5%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="8%" valign="bottom" style="padding:0in 0in 0in 0in;width:8.26%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">11,630</font></p>
  </td>
  <td width="3%" valign="bottom" style="padding:0in 0in 0in 0in;width:3.76%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.5%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="8%" valign="bottom" style="padding:0in 0in 0in 0in;width:8.5%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">10,740</font></p>
  </td>
  <td width="3%" valign="bottom" style="padding:0in 0in 0in 0in;width:3.5%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.5%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="8%" valign="bottom" style="padding:0in 0in 0in 0in;width:8.76%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">22,200</font></p>
  </td>
  <td width="3%" valign="bottom" style="padding:0in 0in 0in 0in;width:3.26%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.5%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="8%" valign="bottom" style="padding:0in 0in 0in 0in;width:8.64%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">21,978</font></p>
  </td>
  <td width="3%" valign="bottom" style="padding:0in 0in 0in 0in;width:3.32%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="42%" valign="bottom" style="padding:0in 0in 0in 0in;width:42.0%;">
  <p style="margin:0in 0in .0001pt 10.0pt;text-indent:-10.0pt;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">Income
  allocated to non-controlling interests</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.5%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="8%" valign="bottom" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0in 0in 0in 0in;width:8.26%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">(48</font></p>
  </td>
  <td width="3%" valign="bottom" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0in 0in 0in 0in;width:3.76%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">)</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.5%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="8%" valign="bottom" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0in 0in 0in 0in;width:8.5%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">(76</font></p>
  </td>
  <td width="3%" valign="bottom" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0in 0in 0in 0in;width:3.5%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">)</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.5%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="8%" valign="bottom" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0in 0in 0in 0in;width:8.76%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">(96</font></p>
  </td>
  <td width="3%" valign="bottom" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0in 0in 0in 0in;width:3.26%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">)</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.5%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="8%" valign="bottom" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0in 0in 0in 0in;width:8.64%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">(153</font></p>
  </td>
  <td width="3%" valign="bottom" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0in 0in 0in 0in;width:3.32%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">)</font></p>
  </td>
 </tr>
 <tr>
  <td width="42%" valign="bottom" style="padding:0in 0in 0in 0in;width:42.0%;">
  <p style="margin:0in 0in .0001pt 10.0pt;text-indent:-10.0pt;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">Net
  income attributable to LTC Properties,&nbsp;Inc.</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.5%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="8%" valign="bottom" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0in 0in 0in 0in;width:8.26%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">11,582</font></p>
  </td>
  <td width="3%" valign="bottom" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0in 0in 0in 0in;width:3.76%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.5%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="8%" valign="bottom" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0in 0in 0in 0in;width:8.5%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">10,664</font></p>
  </td>
  <td width="3%" valign="bottom" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0in 0in 0in 0in;width:3.5%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.5%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="8%" valign="bottom" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0in 0in 0in 0in;width:8.76%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">22,104</font></p>
  </td>
  <td width="3%" valign="bottom" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0in 0in 0in 0in;width:3.26%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.5%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="8%" valign="bottom" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0in 0in 0in 0in;width:8.64%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">21,825</font></p>
  </td>
  <td width="3%" valign="bottom" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0in 0in 0in 0in;width:3.32%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="42%" valign="bottom" style="padding:0in 0in 0in 0in;width:42.0%;">
  <p style="margin:0in 0in .0001pt 10.0pt;text-indent:-10.0pt;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">&nbsp;</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.5%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">&nbsp;</font></p>
  </td>
  <td width="8%" valign="bottom" style="border:none;padding:0in 0in 0in 0in;width:8.26%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">&nbsp;</font></p>
  </td>
  <td width="3%" valign="bottom" style="border:none;padding:0in 0in 0in 0in;width:3.76%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">&nbsp;</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.5%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">&nbsp;</font></p>
  </td>
  <td width="8%" valign="bottom" style="border:none;padding:0in 0in 0in 0in;width:8.5%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">&nbsp;</font></p>
  </td>
  <td width="3%" valign="bottom" style="border:none;padding:0in 0in 0in 0in;width:3.5%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">&nbsp;</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.5%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">&nbsp;</font></p>
  </td>
  <td width="8%" valign="bottom" style="border:none;padding:0in 0in 0in 0in;width:8.76%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">&nbsp;</font></p>
  </td>
  <td width="3%" valign="bottom" style="border:none;padding:0in 0in 0in 0in;width:3.26%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">&nbsp;</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.5%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">&nbsp;</font></p>
  </td>
  <td width="8%" valign="bottom" style="border:none;padding:0in 0in 0in 0in;width:8.64%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">&nbsp;</font></p>
  </td>
  <td width="3%" valign="bottom" style="border:none;padding:0in 0in 0in 0in;width:3.32%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="42%" valign="bottom" style="padding:0in 0in 0in 0in;width:42.0%;">
  <p style="margin:0in 0in .0001pt 10.0pt;text-indent:-10.0pt;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">Income
  allocated to participating securities</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.5%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="8%" valign="bottom" style="padding:0in 0in 0in 0in;width:8.26%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">(58</font></p>
  </td>
  <td width="3%" valign="bottom" style="padding:0in 0in 0in 0in;width:3.76%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">)</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.5%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="8%" valign="bottom" style="padding:0in 0in 0in 0in;width:8.5%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">(35</font></p>
  </td>
  <td width="3%" valign="bottom" style="padding:0in 0in 0in 0in;width:3.5%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">)</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.5%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="8%" valign="bottom" style="padding:0in 0in 0in 0in;width:8.76%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">(101</font></p>
  </td>
  <td width="3%" valign="bottom" style="padding:0in 0in 0in 0in;width:3.26%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">)</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.5%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="8%" valign="bottom" style="padding:0in 0in 0in 0in;width:8.64%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">(71</font></p>
  </td>
  <td width="3%" valign="bottom" style="padding:0in 0in 0in 0in;width:3.32%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">)</font></p>
  </td>
 </tr>
 <tr>
  <td width="42%" valign="bottom" style="padding:0in 0in 0in 0in;width:42.0%;">
  <p style="margin:0in 0in .0001pt 10.0pt;text-indent:-10.0pt;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">Income
  allocated to preferred stockholders</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.5%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="8%" valign="bottom" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0in 0in 0in 0in;width:8.26%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">(3,785</font></p>
  </td>
  <td width="3%" valign="bottom" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0in 0in 0in 0in;width:3.76%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">)</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.5%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="8%" valign="bottom" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0in 0in 0in 0in;width:8.5%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">(3,786</font></p>
  </td>
  <td width="3%" valign="bottom" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0in 0in 0in 0in;width:3.5%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">)</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.5%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="8%" valign="bottom" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0in 0in 0in 0in;width:8.76%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">(7,570</font></p>
  </td>
  <td width="3%" valign="bottom" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0in 0in 0in 0in;width:3.26%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">)</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.5%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="8%" valign="bottom" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0in 0in 0in 0in;width:8.64%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">(6,945</font></p>
  </td>
  <td width="3%" valign="bottom" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0in 0in 0in 0in;width:3.32%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">)</font></p>
  </td>
 </tr>
 <tr>
  <td width="42%" valign="bottom" style="padding:0in 0in 0in 0in;width:42.0%;">
  <p style="margin:0in 0in .0001pt 10.0pt;text-indent:-10.0pt;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">Net
  income available to common stockholders</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.5%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="8%" valign="bottom" style="border:none;border-bottom:double windowtext 2.25pt;padding:0in 0in 0in 0in;width:8.26%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">$&nbsp;&nbsp;7,739</font></p>
  </td>
  <td width="3%" valign="bottom" style="border:none;border-bottom:double windowtext 2.25pt;padding:0in 0in 0in 0in;width:3.76%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.5%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="8%" valign="bottom" style="border:none;border-bottom:double windowtext 2.25pt;padding:0in 0in 0in 0in;width:8.5%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">$&nbsp;&nbsp;6,843</font></p>
  </td>
  <td width="3%" valign="bottom" style="border:none;border-bottom:double windowtext 2.25pt;padding:0in 0in 0in 0in;width:3.5%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.5%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="8%" valign="bottom" style="border:none;border-bottom:double windowtext 2.25pt;padding:0in 0in 0in 0in;width:8.76%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">$&nbsp;&nbsp;14,433</font></p>
  </td>
  <td width="3%" valign="bottom" style="border:none;border-bottom:double windowtext 2.25pt;padding:0in 0in 0in 0in;width:3.26%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.5%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="8%" valign="bottom" style="border:none;border-bottom:double windowtext 2.25pt;padding:0in 0in 0in 0in;width:8.64%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">$&nbsp;&nbsp;14,809</font></p>
  </td>
  <td width="3%" valign="bottom" style="border:none;border-bottom:double windowtext 2.25pt;padding:0in 0in 0in 0in;width:3.32%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="42%" valign="bottom" style="padding:0in 0in 0in 0in;width:42.0%;">
  <p style="margin:0in 0in .0001pt 10.0pt;text-indent:-10.0pt;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">&nbsp;</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.5%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">&nbsp;</font></p>
  </td>
  <td width="8%" valign="bottom" style="border:none;padding:0in 0in 0in 0in;width:8.26%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">&nbsp;</font></p>
  </td>
  <td width="3%" valign="bottom" style="border:none;padding:0in 0in 0in 0in;width:3.76%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">&nbsp;</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.5%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">&nbsp;</font></p>
  </td>
  <td width="8%" valign="bottom" style="border:none;padding:0in 0in 0in 0in;width:8.5%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">&nbsp;</font></p>
  </td>
  <td width="3%" valign="bottom" style="border:none;padding:0in 0in 0in 0in;width:3.5%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">&nbsp;</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.5%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">&nbsp;</font></p>
  </td>
  <td width="8%" valign="bottom" style="border:none;padding:0in 0in 0in 0in;width:8.76%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">&nbsp;</font></p>
  </td>
  <td width="3%" valign="bottom" style="border:none;padding:0in 0in 0in 0in;width:3.26%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">&nbsp;</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.5%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">&nbsp;</font></p>
  </td>
  <td width="8%" valign="bottom" style="border:none;padding:0in 0in 0in 0in;width:8.64%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">&nbsp;</font></p>
  </td>
  <td width="3%" valign="bottom" style="border:none;padding:0in 0in 0in 0in;width:3.32%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="42%" valign="bottom" style="padding:0in 0in 0in 0in;width:42.0%;">
  <p style="margin:0in 0in .0001pt 10.0pt;text-indent:-10.0pt;"><b><font size="1" face="Times New Roman" style="font-size:9.0pt;font-weight:bold;">Net income allocable to common stockholders:</font></b></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.5%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="8%" valign="bottom" style="padding:0in 0in 0in 0in;width:8.26%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="3%" valign="bottom" style="padding:0in 0in 0in 0in;width:3.76%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.5%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="8%" valign="bottom" style="padding:0in 0in 0in 0in;width:8.5%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="3%" valign="bottom" style="padding:0in 0in 0in 0in;width:3.5%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.5%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="8%" valign="bottom" style="padding:0in 0in 0in 0in;width:8.76%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="3%" valign="bottom" style="padding:0in 0in 0in 0in;width:3.26%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.5%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="8%" valign="bottom" style="padding:0in 0in 0in 0in;width:8.64%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="3%" valign="bottom" style="padding:0in 0in 0in 0in;width:3.32%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="42%" valign="bottom" style="padding:0in 0in 0in 0in;width:42.0%;">
  <p style="margin:0in 0in .0001pt 20.0pt;text-indent:-10.0pt;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">Basic
  earnings per common share</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.5%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="8%" valign="bottom" style="border:none;border-bottom:double windowtext 2.25pt;padding:0in 0in 0in 0in;width:8.26%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">$0.33</font></p>
  </td>
  <td width="3%" valign="bottom" style="border:none;border-bottom:double windowtext 2.25pt;padding:0in 0in 0in 0in;width:3.76%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.5%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="8%" valign="bottom" style="border:none;border-bottom:double windowtext 2.25pt;padding:0in 0in 0in 0in;width:8.5%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">$0.30</font></p>
  </td>
  <td width="3%" valign="bottom" style="border:none;border-bottom:double windowtext 2.25pt;padding:0in 0in 0in 0in;width:3.5%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.5%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="8%" valign="bottom" style="border:none;border-bottom:double windowtext 2.25pt;padding:0in 0in 0in 0in;width:8.76%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">$0.62</font></p>
  </td>
  <td width="3%" valign="bottom" style="border:none;border-bottom:double windowtext 2.25pt;padding:0in 0in 0in 0in;width:3.26%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.5%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="8%" valign="bottom" style="border:none;border-bottom:double windowtext 2.25pt;padding:0in 0in 0in 0in;width:8.64%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">$0.64</font></p>
  </td>
  <td width="3%" valign="bottom" style="border:none;border-bottom:double windowtext 2.25pt;padding:0in 0in 0in 0in;width:3.32%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="42%" valign="bottom" style="padding:0in 0in 0in 0in;width:42.0%;">
  <p style="margin:0in 0in .0001pt 20.0pt;text-indent:-10.0pt;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">Diluted
  earnings per common share</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.5%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="8%" valign="bottom" style="border:none;border-bottom:double windowtext 2.25pt;padding:0in 0in 0in 0in;width:8.26%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">$0.33</font></p>
  </td>
  <td width="3%" valign="bottom" style="border:none;border-bottom:double windowtext 2.25pt;padding:0in 0in 0in 0in;width:3.76%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.5%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="8%" valign="bottom" style="border:none;border-bottom:double windowtext 2.25pt;padding:0in 0in 0in 0in;width:8.5%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">$0.30</font></p>
  </td>
  <td width="3%" valign="bottom" style="border:none;border-bottom:double windowtext 2.25pt;padding:0in 0in 0in 0in;width:3.5%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.5%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="8%" valign="bottom" style="border:none;border-bottom:double windowtext 2.25pt;padding:0in 0in 0in 0in;width:8.76%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">$0.61</font></p>
  </td>
  <td width="3%" valign="bottom" style="border:none;border-bottom:double windowtext 2.25pt;padding:0in 0in 0in 0in;width:3.26%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.5%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="8%" valign="bottom" style="border:none;border-bottom:double windowtext 2.25pt;padding:0in 0in 0in 0in;width:8.64%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">$0.64</font></p>
  </td>
  <td width="3%" valign="bottom" style="border:none;border-bottom:double windowtext 2.25pt;padding:0in 0in 0in 0in;width:3.32%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="42%" valign="bottom" style="padding:0in 0in 0in 0in;width:42.0%;">
  <p style="margin:0in 0in .0001pt 20.15pt;text-indent:-20.15pt;"><b><font size="1" face="Times New Roman" style="font-size:9.0pt;font-weight:bold;">Weighted average shares used to calculate
  earnings per common share:</font></b></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.5%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="8%" valign="bottom" style="border:none;padding:0in 0in 0in 0in;width:8.26%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="3%" valign="bottom" style="border:none;padding:0in 0in 0in 0in;width:3.76%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.5%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="8%" valign="bottom" style="border:none;padding:0in 0in 0in 0in;width:8.5%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="3%" valign="bottom" style="border:none;padding:0in 0in 0in 0in;width:3.5%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.5%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="8%" valign="bottom" style="border:none;padding:0in 0in 0in 0in;width:8.76%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="3%" valign="bottom" style="border:none;padding:0in 0in 0in 0in;width:3.26%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.5%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="8%" valign="bottom" style="border:none;padding:0in 0in 0in 0in;width:8.64%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="3%" valign="bottom" style="border:none;padding:0in 0in 0in 0in;width:3.32%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="42%" valign="bottom" style="padding:0in 0in 0in 0in;width:42.0%;">
  <p style="margin:0in 0in .0001pt 20.0pt;text-indent:-10.0pt;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">Basic</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.5%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="8%" valign="bottom" style="border:none;border-bottom:double windowtext 2.25pt;padding:0in 0in 0in 0in;width:8.26%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">23,643</font></p>
  </td>
  <td width="3%" valign="bottom" style="border:none;border-bottom:double windowtext 2.25pt;padding:0in 0in 0in 0in;width:3.76%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.5%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="8%" valign="bottom" style="border:none;border-bottom:double windowtext 2.25pt;padding:0in 0in 0in 0in;width:8.5%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">23,081</font></p>
  </td>
  <td width="3%" valign="bottom" style="border:none;border-bottom:double windowtext 2.25pt;padding:0in 0in 0in 0in;width:3.5%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.5%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="8%" valign="bottom" style="border:none;border-bottom:double windowtext 2.25pt;padding:0in 0in 0in 0in;width:8.76%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">23,464</font></p>
  </td>
  <td width="3%" valign="bottom" style="border:none;border-bottom:double windowtext 2.25pt;padding:0in 0in 0in 0in;width:3.26%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.5%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="8%" valign="bottom" style="border:none;border-bottom:double windowtext 2.25pt;padding:0in 0in 0in 0in;width:8.64%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">23,070</font></p>
  </td>
  <td width="3%" valign="bottom" style="border:none;border-bottom:double windowtext 2.25pt;padding:0in 0in 0in 0in;width:3.32%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="42%" valign="bottom" style="padding:0in 0in 0in 0in;width:42.0%;">
  <p style="margin:0in 0in .0001pt 20.0pt;text-indent:-10.0pt;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">Diluted</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.5%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="8%" valign="bottom" style="border:none;border-bottom:double windowtext 2.25pt;padding:0in 0in 0in 0in;width:8.26%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">23,743</font></p>
  </td>
  <td width="3%" valign="bottom" style="border:none;border-bottom:double windowtext 2.25pt;padding:0in 0in 0in 0in;width:3.76%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.5%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="8%" valign="bottom" style="border:none;border-bottom:double windowtext 2.25pt;padding:0in 0in 0in 0in;width:8.5%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">23,163</font></p>
  </td>
  <td width="3%" valign="bottom" style="border:none;border-bottom:double windowtext 2.25pt;padding:0in 0in 0in 0in;width:3.5%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.5%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="8%" valign="bottom" style="border:none;border-bottom:double windowtext 2.25pt;padding:0in 0in 0in 0in;width:8.76%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">23,563</font></p>
  </td>
  <td width="3%" valign="bottom" style="border:none;border-bottom:double windowtext 2.25pt;padding:0in 0in 0in 0in;width:3.26%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.5%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="8%" valign="bottom" style="border:none;border-bottom:double windowtext 2.25pt;padding:0in 0in 0in 0in;width:8.64%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">23,151</font></p>
  </td>
  <td width="3%" valign="bottom" style="border:none;border-bottom:double windowtext 2.25pt;padding:0in 0in 0in 0in;width:3.32%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
 </tr>
</table>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<div style="margin:0in 0in .0001pt;"><hr size="1" width="15%" noshade color="black" align="left"></div>

<p style="margin:0in 0in .0001pt .25in;text-indent:-15.0pt;"><font size="1" face="Times New Roman" style="font-size:8.0pt;">(1)&#160; During the three and six months ended
June&nbsp;30, 2010, we received $1,042,000 and $2,076,000, respectively, in
rental income and recorded $83,000 and $175,000, respectively, in straight-line
rental income from a lessee that qualifies as a related party.&#160; During the three and six months ended
June&nbsp;30, 2009, we received $1,017,000 and $2,025,000, respectively, in
rental income and recorded $109,000 and $226,000, respectively, in
straight-line rental income from a lessee that qualifies as a related
party.&#160; The lessee&#146;s Chief Executive
Officer is on our Board of Directors.&#160;
See <i>Note 9. Transactions with Related Party</i>
for further discussion.</font></p>

<p style="margin:0in 0in .0001pt .25in;text-indent:-.25in;"><font size="1" face="Times New Roman" style="font-size:8.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt .25in;text-indent:-.25in;"><font size="1" face="Times New Roman" style="font-size:8.0pt;">(2)&#160;&#160; During each of the three and six months ended
June&nbsp;30, 2010 and 2009, we recognized $180,000 and 360,000, respectively,
of interest income from an entity that qualifies as a related party because the
entity&#146;s Chief Executive Officer is on our Board of Directors.&#160; See <i>Note 9. Transactions with
Related Party</i> for further discussion.</font></p>

<p align="center" style="margin:0in 0in .0001pt .25in;text-align:center;text-indent:-.25in;"><font size="1" face="Times New Roman" style="font-size:8.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt .25in;text-align:center;text-indent:-.25in;"><font size="1" face="Times New Roman" style="font-size:8.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><i><font size="1" face="Times New Roman" style="font-size:9.0pt;font-style:italic;">See accompanying notes.</font></i></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">4<a name="PB_4_221328_5335"></a></font></p>

<div style="margin:0in 0in .0001pt;"><hr size="3" width="100%" noshade color="#010101" align="left"></div>

</div>
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<br clear="all" style="page-break-before:always;">


<div style="font-family:Times New Roman;">

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:11.0pt;font-weight:bold;">LTC
PROPERTIES,&nbsp;INC.</font></b></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:11.0pt;font-weight:bold;">CONSOLIDATED STATEMENTS OF CASH FLOWS</font></b><a name="ConsolidatedStatementsOfCashFlows_222225"></a></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:11.0pt;">(Amounts in
thousands)</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><i><font size="2" face="Times New Roman" style="font-size:11.0pt;font-style:italic;">(Unaudited)</font></i></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<table border="0" cellspacing="0" cellpadding="0" width="100%" style="border-collapse:collapse;width:100.0%;">
 <tr>
  <td width="71%" valign="bottom" style="padding:0in 0in 0in 0in;width:71.52%;">
  <p style="margin:0in 0in .0001pt 10.0pt;text-indent:-10.0pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.5%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="25%" colspan="5" valign="bottom" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0in 0in 0in 0in;width:25.98%;">
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Six Months Ended
  June&nbsp;30,</font></p>
  </td>
 </tr>
 <tr>
  <td width="71%" valign="bottom" style="padding:0in 0in 0in 0in;width:71.52%;">
  <p style="margin:0in 0in .0001pt 10.0pt;text-indent:-10.0pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.5%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="12%" colspan="2" valign="bottom" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0in 0in 0in 0in;width:12.0%;">
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">2010</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.0%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="11%" colspan="2" valign="bottom" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0in 0in 0in 0in;width:11.98%;">
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">2009</font></p>
  </td>
 </tr>
 <tr>
  <td width="71%" valign="bottom" style="padding:0in 0in 0in 0in;width:71.52%;">
  <p style="margin:0in 0in .0001pt 10.0pt;text-indent:-10.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">OPERATING
  ACTIVITIES:</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.5%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="9%" valign="bottom" style="border:none;padding:0in 0in 0in 0in;width:9.0%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="3%" valign="bottom" style="padding:0in 0in 0in 0in;width:3.0%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.0%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="9%" valign="bottom" style="border:none;padding:0in 0in 0in 0in;width:9.0%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.98%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="71%" valign="bottom" style="padding:0in 0in 0in 0in;width:71.52%;">
  <p style="margin:0in 0in .0001pt 20.0pt;text-indent:-10.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Net
  income</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.5%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="9%" valign="bottom" style="padding:0in 0in 0in 0in;width:9.0%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">$22,200</font></p>
  </td>
  <td width="3%" valign="bottom" style="padding:0in 0in 0in 0in;width:3.0%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.0%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="9%" valign="bottom" style="padding:0in 0in 0in 0in;width:9.0%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">$21,978</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.98%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="71%" valign="bottom" style="padding:0in 0in 0in 0in;width:71.52%;">
  <p style="margin:0in 0in .0001pt 20.0pt;text-indent:-10.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Adjustments
  to reconcile net income to net cash provided by operating activities:</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.5%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="9%" valign="bottom" style="padding:0in 0in 0in 0in;width:9.0%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="3%" valign="bottom" style="padding:0in 0in 0in 0in;width:3.0%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.0%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="9%" valign="bottom" style="padding:0in 0in 0in 0in;width:9.0%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.98%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="71%" valign="bottom" style="padding:0in 0in 0in 0in;width:71.52%;">
  <p style="margin:0in 0in .0001pt 30.0pt;text-indent:-10.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Depreciation
  and amortization</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.5%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="9%" valign="bottom" style="padding:0in 0in 0in 0in;width:9.0%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">7,874</font></p>
  </td>
  <td width="3%" valign="bottom" style="padding:0in 0in 0in 0in;width:3.0%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.0%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="9%" valign="bottom" style="padding:0in 0in 0in 0in;width:9.0%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">7,395</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.98%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="71%" valign="bottom" style="padding:0in 0in 0in 0in;width:71.52%;">
  <p style="margin:0in 0in .0001pt 30.0pt;text-indent:-10.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Stock-based
  compensation expense</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.5%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="9%" valign="bottom" style="padding:0in 0in 0in 0in;width:9.0%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">721</font></p>
  </td>
  <td width="3%" valign="bottom" style="padding:0in 0in 0in 0in;width:3.0%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.0%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="9%" valign="bottom" style="padding:0in 0in 0in 0in;width:9.0%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">665</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.98%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="71%" valign="bottom" style="padding:0in 0in 0in 0in;width:71.52%;">
  <p style="margin:0in 0in .0001pt 30.0pt;text-indent:-10.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Straight-line
  rental income </font><font size="1" style="font-size:6.5pt;position:relative;top:-3.0pt;">(1)</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.5%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="9%" valign="bottom" style="padding:0in 0in 0in 0in;width:9.0%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(1,860</font></p>
  </td>
  <td width="3%" valign="bottom" style="padding:0in 0in 0in 0in;width:3.0%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">)</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.0%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="9%" valign="bottom" style="padding:0in 0in 0in 0in;width:9.0%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(2,209</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.98%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">)</font></p>
  </td>
 </tr>
 <tr>
  <td width="71%" valign="bottom" style="padding:0in 0in 0in 0in;width:71.52%;">
  <p style="margin:0in 0in .0001pt 30.0pt;text-indent:-10.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Provisions
  for doubtful accounts</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.5%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="9%" valign="bottom" style="padding:0in 0in 0in 0in;width:9.0%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">1,255</font></p>
  </td>
  <td width="3%" valign="bottom" style="padding:0in 0in 0in 0in;width:3.0%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.0%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="9%" valign="bottom" style="padding:0in 0in 0in 0in;width:9.0%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">371</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.98%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="71%" valign="bottom" style="padding:0in 0in 0in 0in;width:71.52%;">
  <p style="margin:0in 0in .0001pt 30.0pt;text-indent:-10.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Other
  non-cash items, net</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.5%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="9%" valign="bottom" style="padding:0in 0in 0in 0in;width:9.0%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">496</font></p>
  </td>
  <td width="3%" valign="bottom" style="padding:0in 0in 0in 0in;width:3.0%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.0%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="9%" valign="bottom" style="padding:0in 0in 0in 0in;width:9.0%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">302</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.98%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="71%" valign="bottom" style="padding:0in 0in 0in 0in;width:71.52%;">
  <p style="margin:0in 0in .0001pt 30.0pt;text-indent:-10.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Decrease
  in accrued interest payable</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.5%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="9%" valign="bottom" style="padding:0in 0in 0in 0in;width:9.0%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(2</font></p>
  </td>
  <td width="3%" valign="bottom" style="padding:0in 0in 0in 0in;width:3.0%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">)</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.0%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="9%" valign="bottom" style="padding:0in 0in 0in 0in;width:9.0%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(117</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.98%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">)</font></p>
  </td>
 </tr>
 <tr>
  <td width="71%" valign="bottom" style="padding:0in 0in 0in 0in;width:71.52%;">
  <p style="margin:0in 0in .0001pt 30.0pt;text-indent:-10.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Decrease
  in interest receivable</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.5%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="9%" valign="bottom" style="padding:0in 0in 0in 0in;width:9.0%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">45</font></p>
  </td>
  <td width="3%" valign="bottom" style="padding:0in 0in 0in 0in;width:3.0%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.0%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="9%" valign="bottom" style="padding:0in 0in 0in 0in;width:9.0%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">43</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.98%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="71%" valign="bottom" style="padding:0in 0in 0in 0in;width:71.52%;">
  <p style="margin:0in 0in .0001pt 30.0pt;text-indent:-10.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Net
  change in other assets and liabilities</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.5%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="9%" valign="bottom" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0in 0in 0in 0in;width:9.0%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">927</font></p>
  </td>
  <td width="3%" valign="bottom" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0in 0in 0in 0in;width:3.0%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.0%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="9%" valign="bottom" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0in 0in 0in 0in;width:9.0%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">1,092</font></p>
  </td>
  <td width="2%" valign="bottom" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0in 0in 0in 0in;width:2.98%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="71%" valign="bottom" style="padding:0in 0in 0in 0in;width:71.52%;">
  <p style="margin:0in 0in .0001pt 40.0pt;text-indent:-10.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Net
  cash provided by operating activities</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.5%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="9%" valign="bottom" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0in 0in 0in 0in;width:9.0%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">31,656</font></p>
  </td>
  <td width="3%" valign="bottom" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0in 0in 0in 0in;width:3.0%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.0%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="9%" valign="bottom" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0in 0in 0in 0in;width:9.0%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">29,520</font></p>
  </td>
  <td width="2%" valign="bottom" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0in 0in 0in 0in;width:2.98%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="71%" valign="bottom" style="padding:0in 0in 0in 0in;width:71.52%;">
  <p style="margin:8.0pt 0in .0001pt 10.0pt;text-indent:-10.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">INVESTING
  ACTIVITIES:</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.5%;">
  <p style="margin:8.0pt 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="9%" valign="bottom" style="border:none;padding:0in 0in 0in 0in;width:9.0%;">
  <p align="right" style="margin:8.0pt 0in .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="3%" valign="bottom" style="border:none;padding:0in 0in 0in 0in;width:3.0%;">
  <p style="margin:8.0pt 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.0%;">
  <p style="margin:8.0pt 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="9%" valign="bottom" style="border:none;padding:0in 0in 0in 0in;width:9.0%;">
  <p align="right" style="margin:8.0pt 0in .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="2%" valign="bottom" style="border:none;padding:0in 0in 0in 0in;width:2.98%;">
  <p style="margin:8.0pt 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="71%" valign="bottom" style="padding:0in 0in 0in 0in;width:71.52%;">
  <p style="margin:0in 0in .0001pt 20.0pt;text-indent:-10.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Investment
  in real estate properties and capital improvements, net</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.5%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="9%" valign="bottom" style="padding:0in 0in 0in 0in;width:9.0%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(40,844</font></p>
  </td>
  <td width="3%" valign="bottom" style="padding:0in 0in 0in 0in;width:3.0%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">)</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.0%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="9%" valign="bottom" style="padding:0in 0in 0in 0in;width:9.0%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(1,731</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.98%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">)</font></p>
  </td>
 </tr>
 <tr>
  <td width="71%" valign="bottom" style="padding:0in 0in 0in 0in;width:71.52%;">
  <p style="margin:0in 0in .0001pt 20.0pt;text-indent:-10.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Investment
  in real estate mortgages</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.5%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="9%" valign="bottom" style="padding:0in 0in 0in 0in;width:9.0%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(72</font></p>
  </td>
  <td width="3%" valign="bottom" style="padding:0in 0in 0in 0in;width:3.0%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">)</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.0%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="9%" valign="bottom" style="padding:0in 0in 0in 0in;width:9.0%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(216</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.98%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">)</font></p>
  </td>
 </tr>
 <tr>
  <td width="71%" valign="bottom" style="padding:0in 0in 0in 0in;width:71.52%;">
  <p style="margin:0in 0in .0001pt 20.0pt;text-indent:-10.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Principal
  payments received on mortgage loans receivable</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.5%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="9%" valign="bottom" style="padding:0in 0in 0in 0in;width:9.0%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">1,957</font></p>
  </td>
  <td width="3%" valign="bottom" style="padding:0in 0in 0in 0in;width:3.0%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.0%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="9%" valign="bottom" style="padding:0in 0in 0in 0in;width:9.0%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">4,196</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.98%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="71%" valign="bottom" style="padding:0in 0in 0in 0in;width:71.52%;">
  <p style="margin:0in 0in .0001pt 20.0pt;text-indent:-10.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Advance
  under notes receivable</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.5%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="9%" valign="bottom" style="padding:0in 0in 0in 0in;width:9.0%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#151;</font></p>
  </td>
  <td width="3%" valign="bottom" style="padding:0in 0in 0in 0in;width:3.0%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.0%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="9%" valign="bottom" style="padding:0in 0in 0in 0in;width:9.0%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(125</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.98%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">)</font></p>
  </td>
 </tr>
 <tr>
  <td width="71%" valign="bottom" style="padding:0in 0in 0in 0in;width:71.52%;">
  <p style="margin:0in 0in .0001pt 20.0pt;text-indent:-10.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Principal
  payments received on notes receivable</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.5%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="9%" valign="bottom" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0in 0in 0in 0in;width:9.0%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">1,006</font></p>
  </td>
  <td width="3%" valign="bottom" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0in 0in 0in 0in;width:3.0%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.0%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="9%" valign="bottom" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0in 0in 0in 0in;width:9.0%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">365</font></p>
  </td>
  <td width="2%" valign="bottom" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0in 0in 0in 0in;width:2.98%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="71%" valign="bottom" style="padding:0in 0in 0in 0in;width:71.52%;">
  <p style="margin:0in 0in .0001pt 30.0pt;text-indent:-10.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Net
  cash (used in) provided by investing activities</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.5%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="9%" valign="bottom" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0in 0in 0in 0in;width:9.0%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(37,953</font></p>
  </td>
  <td width="3%" valign="bottom" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0in 0in 0in 0in;width:3.0%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">)</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.0%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="9%" valign="bottom" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0in 0in 0in 0in;width:9.0%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">2,489</font></p>
  </td>
  <td width="2%" valign="bottom" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0in 0in 0in 0in;width:2.98%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="71%" valign="bottom" style="padding:0in 0in 0in 0in;width:71.52%;">
  <p style="margin:8.0pt 0in .0001pt 10.0pt;text-indent:-10.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">FINANCING
  ACTIVITIES:</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.5%;">
  <p style="margin:8.0pt 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="9%" valign="bottom" style="border:none;padding:0in 0in 0in 0in;width:9.0%;">
  <p align="right" style="margin:8.0pt 0in .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="3%" valign="bottom" style="border:none;padding:0in 0in 0in 0in;width:3.0%;">
  <p style="margin:8.0pt 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.0%;">
  <p style="margin:8.0pt 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="9%" valign="bottom" style="border:none;padding:0in 0in 0in 0in;width:9.0%;">
  <p align="right" style="margin:8.0pt 0in .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="2%" valign="bottom" style="border:none;padding:0in 0in 0in 0in;width:2.98%;">
  <p style="margin:8.0pt 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="71%" valign="bottom" style="padding:0in 0in 0in 0in;width:71.52%;">
  <p style="margin:0in 0in .0001pt 20.0pt;text-indent:-10.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Bank
  borrowings</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.5%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="9%" valign="bottom" style="padding:0in 0in 0in 0in;width:9.0%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">37,500</font></p>
  </td>
  <td width="3%" valign="bottom" style="padding:0in 0in 0in 0in;width:3.0%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.0%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="9%" valign="bottom" style="padding:0in 0in 0in 0in;width:9.0%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">5,500</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.98%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="71%" valign="bottom" style="padding:0in 0in 0in 0in;width:71.52%;">
  <p style="margin:0in 0in .0001pt 20.0pt;text-indent:-10.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Repayment
  of bank borrowings</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.5%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="9%" valign="bottom" style="padding:0in 0in 0in 0in;width:9.0%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(10,000</font></p>
  </td>
  <td width="3%" valign="bottom" style="padding:0in 0in 0in 0in;width:3.0%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">)</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.0%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="9%" valign="bottom" style="padding:0in 0in 0in 0in;width:9.0%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#151;</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.98%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="71%" valign="bottom" style="padding:0in 0in 0in 0in;width:71.52%;">
  <p style="margin:0in 0in .0001pt 20.0pt;text-indent:-10.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Principal
  payments on mortgage loan payable and bonds payable</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.5%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="9%" valign="bottom" style="padding:0in 0in 0in 0in;width:9.0%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(8,180</font></p>
  </td>
  <td width="3%" valign="bottom" style="padding:0in 0in 0in 0in;width:3.0%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">)</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.0%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="9%" valign="bottom" style="padding:0in 0in 0in 0in;width:9.0%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(16,657</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.98%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">)</font></p>
  </td>
 </tr>
 <tr>
  <td width="71%" valign="bottom" style="padding:0in 0in 0in 0in;width:71.52%;">
  <p style="margin:0in 0in .0001pt 20.0pt;text-indent:-10.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Proceeds
  from stock offering</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.5%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="9%" valign="bottom" style="padding:0in 0in 0in 0in;width:9.0%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">9,654</font></p>
  </td>
  <td width="3%" valign="bottom" style="padding:0in 0in 0in 0in;width:3.0%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.0%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="9%" valign="bottom" style="padding:0in 0in 0in 0in;width:9.0%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#151;</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.98%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="71%" valign="bottom" style="padding:0in 0in 0in 0in;width:71.52%;">
  <p style="margin:0in 0in .0001pt 20.0pt;text-indent:-10.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Repurchase
  of common stock</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.5%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="9%" valign="bottom" style="padding:0in 0in 0in 0in;width:9.0%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#151;</font></p>
  </td>
  <td width="3%" valign="bottom" style="padding:0in 0in 0in 0in;width:3.0%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.0%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="9%" valign="bottom" style="padding:0in 0in 0in 0in;width:9.0%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(16</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.98%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">)</font></p>
  </td>
 </tr>
 <tr>
  <td width="71%" valign="bottom" style="padding:0in 0in 0in 0in;width:71.52%;">
  <p style="margin:0in 0in .0001pt 20.0pt;text-indent:-10.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Repurchase
  of preferred stock</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.5%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="9%" valign="bottom" style="padding:0in 0in 0in 0in;width:9.0%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#151;</font></p>
  </td>
  <td width="3%" valign="bottom" style="padding:0in 0in 0in 0in;width:3.0%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.0%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="9%" valign="bottom" style="padding:0in 0in 0in 0in;width:9.0%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(2,000</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.98%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">)</font></p>
  </td>
 </tr>
 <tr>
  <td width="71%" valign="bottom" style="padding:0in 0in 0in 0in;width:71.52%;">
  <p style="margin:0in 0in .0001pt 20.0pt;text-indent:-10.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Distributions
  paid to non-controlling interests</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.5%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="9%" valign="bottom" style="padding:0in 0in 0in 0in;width:9.0%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(115</font></p>
  </td>
  <td width="3%" valign="bottom" style="padding:0in 0in 0in 0in;width:3.0%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">)</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.0%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="9%" valign="bottom" style="padding:0in 0in 0in 0in;width:9.0%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(153</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.98%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">)</font></p>
  </td>
 </tr>
 <tr>
  <td width="71%" valign="bottom" style="padding:0in 0in 0in 0in;width:71.52%;">
  <p style="margin:0in 0in .0001pt 20.0pt;text-indent:-10.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Distributions
  paid to stockholders</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.5%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="9%" valign="bottom" style="padding:0in 0in 0in 0in;width:9.0%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(25,986</font></p>
  </td>
  <td width="3%" valign="bottom" style="padding:0in 0in 0in 0in;width:3.0%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">)</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.0%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="9%" valign="bottom" style="padding:0in 0in 0in 0in;width:9.0%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(25,693</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.98%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">)</font></p>
  </td>
 </tr>
 <tr>
  <td width="71%" valign="bottom" style="padding:0in 0in 0in 0in;width:71.52%;">
  <p style="margin:0in 0in .0001pt 20.0pt;text-indent:-10.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Other</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.5%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="9%" valign="bottom" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0in 0in 0in 0in;width:9.0%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">66</font></p>
  </td>
  <td width="3%" valign="bottom" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0in 0in 0in 0in;width:3.0%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.0%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="9%" valign="bottom" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0in 0in 0in 0in;width:9.0%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#151;</font></p>
  </td>
  <td width="2%" valign="bottom" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0in 0in 0in 0in;width:2.98%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="71%" valign="bottom" style="padding:0in 0in 0in 0in;width:71.52%;">
  <p style="margin:0in 0in .0001pt 40.0pt;text-indent:-10.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Net
  cash provided by (used in) financing activities</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.5%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="9%" valign="bottom" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0in 0in 0in 0in;width:9.0%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">2,939</font></p>
  </td>
  <td width="3%" valign="bottom" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0in 0in 0in 0in;width:3.0%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.0%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="9%" valign="bottom" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0in 0in 0in 0in;width:9.0%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(39,019</font></p>
  </td>
  <td width="2%" valign="bottom" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0in 0in 0in 0in;width:2.98%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">)</font></p>
  </td>
 </tr>
 <tr>
  <td width="71%" valign="bottom" style="padding:0in 0in 0in 0in;width:71.52%;">
  <p style="margin:0in 0in .0001pt 10.0pt;text-indent:-10.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.5%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="9%" valign="bottom" style="border:none;padding:0in 0in 0in 0in;width:9.0%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="3%" valign="bottom" style="border:none;padding:0in 0in 0in 0in;width:3.0%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.0%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="9%" valign="bottom" style="border:none;padding:0in 0in 0in 0in;width:9.0%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="2%" valign="bottom" style="border:none;padding:0in 0in 0in 0in;width:2.98%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="71%" valign="bottom" style="padding:0in 0in 0in 0in;width:71.52%;">
  <p style="margin:0in 0in .0001pt 10.0pt;text-indent:-10.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Decrease
  in cash and cash equivalents</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.5%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="9%" valign="bottom" style="padding:0in 0in 0in 0in;width:9.0%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(3,358</font></p>
  </td>
  <td width="3%" valign="bottom" style="padding:0in 0in 0in 0in;width:3.0%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">)</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.0%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="9%" valign="bottom" style="padding:0in 0in 0in 0in;width:9.0%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(7,010</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.98%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">)</font></p>
  </td>
 </tr>
 <tr>
  <td width="71%" valign="bottom" style="padding:0in 0in 0in 0in;width:71.52%;">
  <p style="margin:0in 0in .0001pt 10.0pt;text-indent:-10.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Cash
  and cash equivalents, beginning of period</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.5%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="9%" valign="bottom" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0in 0in 0in 0in;width:9.0%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">8,856</font></p>
  </td>
  <td width="3%" valign="bottom" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0in 0in 0in 0in;width:3.0%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.0%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="9%" valign="bottom" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0in 0in 0in 0in;width:9.0%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">21,118</font></p>
  </td>
  <td width="2%" valign="bottom" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0in 0in 0in 0in;width:2.98%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="71%" valign="bottom" style="padding:0in 0in 0in 0in;width:71.52%;">
  <p style="margin:0in 0in .0001pt 10.0pt;text-indent:-10.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Cash
  and cash equivalents, end of period</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.5%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="9%" valign="bottom" style="border:none;border-bottom:double windowtext 2.25pt;padding:0in 0in 0in 0in;width:9.0%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">$&nbsp;&nbsp;5,498</font></p>
  </td>
  <td width="3%" valign="bottom" style="border:none;border-bottom:double windowtext 2.25pt;padding:0in 0in 0in 0in;width:3.0%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.0%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="9%" valign="bottom" style="border:none;border-bottom:double windowtext 2.25pt;padding:0in 0in 0in 0in;width:9.0%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">$&nbsp;14,108</font></p>
  </td>
  <td width="2%" valign="bottom" style="border:none;border-bottom:double windowtext 2.25pt;padding:0in 0in 0in 0in;width:2.98%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="71%" valign="bottom" style="padding:0in 0in 0in 0in;width:71.52%;">
  <p style="margin:8.0pt 0in .0001pt 10.0pt;text-indent:-10.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">SUPPLEMENTAL
  CASH FLOW INFORMATION:</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.5%;">
  <p style="margin:8.0pt 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="9%" valign="bottom" style="border:none;padding:0in 0in 0in 0in;width:9.0%;">
  <p align="right" style="margin:8.0pt 0in .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="3%" valign="bottom" style="border:none;padding:0in 0in 0in 0in;width:3.0%;">
  <p style="margin:8.0pt 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.0%;">
  <p style="margin:8.0pt 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="9%" valign="bottom" style="border:none;padding:0in 0in 0in 0in;width:9.0%;">
  <p align="right" style="margin:8.0pt 0in .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="2%" valign="bottom" style="border:none;padding:0in 0in 0in 0in;width:2.98%;">
  <p style="margin:8.0pt 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="71%" valign="bottom" style="padding:0in 0in 0in 0in;width:71.52%;">
  <p style="margin:0in 0in .0001pt 10.0pt;text-indent:-10.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Interest
  paid</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.5%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="9%" valign="bottom" style="padding:0in 0in 0in 0in;width:9.0%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">$640</font></p>
  </td>
  <td width="3%" valign="bottom" style="padding:0in 0in 0in 0in;width:3.0%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.0%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="9%" valign="bottom" style="padding:0in 0in 0in 0in;width:9.0%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">$1,591</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.98%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="71%" valign="bottom" style="padding:0in 0in 0in 0in;width:71.52%;">
  <p style="margin:0in 0in .0001pt 10.0pt;text-indent:-10.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Non-cash
  investing and financing transactions:</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.5%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="9%" valign="bottom" style="padding:0in 0in 0in 0in;width:9.0%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="3%" valign="bottom" style="padding:0in 0in 0in 0in;width:3.0%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.0%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="9%" valign="bottom" style="padding:0in 0in 0in 0in;width:9.0%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.98%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="71%" valign="bottom" style="padding:0in 0in 0in 0in;width:71.52%;">
  <p style="margin:0in 0in .0001pt 20.0pt;text-indent:-10.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Conversion
  of preferred stock to common stock</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.5%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="9%" valign="bottom" style="padding:0in 0in 0in 0in;width:9.0%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#151;</font></p>
  </td>
  <td width="3%" valign="bottom" style="padding:0in 0in 0in 0in;width:3.0%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.0%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="9%" valign="bottom" style="padding:0in 0in 0in 0in;width:9.0%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">23</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.98%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
 </tr>
</table>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<div style="margin:0in 0in .0001pt .5in;text-indent:-.25in;"><hr size="1" width="15%" noshade color="black" align="left"></div>

<p style="margin:0in 0in .0001pt .5in;text-indent:-.25in;"><font size="1" face="Times New Roman" style="font-size:8.0pt;">(1)</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font size="1" style="font-size:8.0pt;">During the six months ended June&nbsp;30,
2010 and 2009, we recorded $175,000 and $226,000, respectively, in
straight-line rental income from a lessee that qualifies as a related
party.&#160; The lessee&#146;s Chief Executive
Officer is on our Board of Directors.&#160;
See <i>Note 9. Transactions with Related Party</i>
for further discussion.</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="1" face="Times New Roman" style="font-size:8.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="1" face="Times New Roman" style="font-size:8.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><i><font size="1" face="Times New Roman" style="font-size:9.0pt;font-style:italic;">See accompanying notes.</font></i></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">5<a name="PB_5_222200_5796"></a></font></p>

<div style="margin:0in 0in .0001pt;"><hr size="3" width="100%" noshade color="#010101" align="left"></div>

</div>
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<div style="font-family:Times New Roman;">

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><b><font size="3" face="Times New Roman" style="font-size:11.5pt;font-weight:bold;">LTC PROPERTIES,&nbsp;INC.</font></b></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><b><font size="3" face="Times New Roman" style="font-size:11.5pt;font-weight:bold;">NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS</font></b><a name="NotesToConsolidatedFinancialState_000023"></a></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><b><font size="3" face="Times New Roman" style="font-size:11.5pt;font-weight:bold;">(Unaudited)</font></b></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt .25in;text-indent:-.25in;"><b><font size="2" face="Times New Roman" style="font-size:11.0pt;font-weight:bold;">1.</font></b><b><font size="1" style="font-size:3.0pt;font-weight:bold;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font></b><b><font size="2" style="font-size:11.0pt;font-weight:bold;">General</font></b></p>

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:11.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:11.0pt;">LTC Properties,&nbsp;Inc.,
a Maryland corporation, is a real estate investment trust (or REIT) that
invests primarily in senior housing and long term care properties through
mortgage loans, property lease transactions and other investments.&#160; Our primary senior housing and long term care
property types include skilled nursing properties (or SNF), assisted living properties
(or ALF), independent living properties (or ILF) and combinations thereof.</font></p>

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:11.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:11.0pt;">We have prepared
consolidated financial statements included herein without audit and in the
opinion of management have included all adjustments necessary for a fair
presentation of the results of operations for the three and six months ended
June&nbsp;30, 2010 and 2009 pursuant to the rules&nbsp;and regulations of the
Securities and Exchange Commission (or SEC).&#160;
Certain information and note disclosures normally included in financial
statements prepared in accordance with U.S. generally accepted accounting
principles (or U.S. GAAP) have been condensed or omitted pursuant to rules&nbsp;and
regulations governing the presentation of interim financial statements.&#160; The results of operations for the three and
six months ended June&nbsp;30, 2010 and 2009 are not necessarily indicative of
the results for a full year.</font></p>

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:11.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:11.0pt;">The accompanying
consolidated financial statements include the accounts of our company, its
wholly-owned subsidiaries and a controlled partnership.&#160; All significant intercompany accounts and
transactions have been eliminated in consolidation.&#160; Control over the partnership is based on the
provisions of the partnership agreement that provide us with a controlling
financial interest in the partnership.</font></p>

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:11.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:11.0pt;">Under the terms of
the partnership agreement, our company, as general partner, is responsible for
the management of the partnership&#146;s assets, business and affairs.&#160; Certain of our rights and duties in
management of the partnership include making all operating decisions, setting
the capital budget, executing all contracts, making all employment decisions,
and handling the purchase and disposition of assets.&#160; We, as the general partner, are responsible
for the ongoing, major, and central operations of the partnership and make all
management decisions.&#160; In addition, we,
as the general partner, assume the risk for all operating losses, capital
losses, and are entitled to substantially all capital gains (i.e. asset
appreciation).&#160; The limited partners have
virtually no rights and are precluded from taking part in the operation,
management or control of the partnership.&#160;
The limited partners are also precluded from transferring their
partnership interests without the express permission of the general partner.&#160; However, we can transfer our interest without
consultation or permission of the limited partners.</font></p>

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:11.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:11.0pt;">No provision has
been made for federal or state income taxes.&#160;
Our company qualifies as a REIT under Sections 856 through 860 of the
Internal Revenue Code of 1986, as amended.&#160;
As such, we generally are not taxed on income that is distributed to our
stockholders.</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">6<a name="PB_6_222504_3020"></a></font></p>

<div style="margin:0in 0in .0001pt;"><hr size="3" width="100%" noshade color="#010101" align="left"></div>

</div>
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<div style="font-family:Times New Roman;">

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><b><font size="3" face="Times New Roman" style="font-size:11.5pt;font-weight:bold;">LTC PROPERTIES,&nbsp;INC.</font></b></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><b><font size="3" face="Times New Roman" style="font-size:11.5pt;font-weight:bold;">NOTES TO CONSOLIDATED FINANCIAL STATEMENTS </font></b><b><font size="1" style="font-size:9.0pt;font-weight:bold;">CONTINUED</font></b></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><b><font size="3" face="Times New Roman" style="font-size:11.5pt;font-weight:bold;">(Unaudited)</font></b></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:11.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt .25in;text-indent:-.25in;"><b><font size="2" face="Times New Roman" style="font-size:11.0pt;font-weight:bold;">2.</font></b><b><font size="1" style="font-size:3.0pt;font-weight:bold;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font></b><b><font size="2" style="font-size:11.0pt;font-weight:bold;">Real Estate Investments</font></b></p>

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><i><font size="2" face="Times New Roman" style="font-size:11.0pt;font-style:italic;">&nbsp;</font></i></p>

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><i><font size="2" face="Times New Roman" style="font-size:11.0pt;font-style:italic;">Mortgage
Loans.</font></i><font size="2" style="font-size:11.0pt;"> The
following table summarizes our investments in mortgage loans secured by first
mortgages at June&nbsp;30, 2010 <i>(in thousands)</i>:</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:11.0pt;">&nbsp;</font></p>

<div align="center">

<table border="0" cellspacing="0" cellpadding="0" width="96%" style="border-collapse:collapse;width:96.8%;">
 <tr>
  <td width="155" valign="bottom" style="padding:0in 1.45pt 0in 1.45pt;width:116.1pt;">
  <p align="center" style="margin:0in 0in .0001pt;page-break-after:avoid;text-align:center;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="12" valign="bottom" style="padding:0in 1.45pt 0in 1.45pt;width:9.0pt;">
  <p align="center" style="margin:0in 0in .0001pt;page-break-after:avoid;text-align:center;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="78" valign="bottom" style="padding:0in 1.45pt 0in 1.45pt;width:58.5pt;">
  <p align="center" style="margin:0in 0in .0001pt;page-break-after:avoid;text-align:center;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="6" valign="bottom" style="padding:0in 1.45pt 0in 1.45pt;width:4.5pt;">
  <p align="center" style="margin:0in 0in .0001pt;page-break-after:avoid;text-align:center;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="72" rowspan="2" valign="bottom" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0in 1.45pt 0in 1.45pt;width:.75in;">
  <p align="center" style="margin:0in 0in .0001pt;page-break-after:avoid;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Percentage of Investments</font></p>
  </td>
  <td width="6" valign="bottom" style="padding:0in 1.45pt 0in 1.45pt;width:4.5pt;">
  <p align="center" style="margin:0in 0in .0001pt;page-break-after:avoid;text-align:center;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="60" valign="bottom" style="padding:0in 1.45pt 0in 1.45pt;width:45.0pt;">
  <p align="center" style="margin:0in 0in .0001pt;page-break-after:avoid;text-align:center;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="6" valign="bottom" style="padding:0in 1.45pt 0in 1.45pt;width:4.5pt;">
  <p align="center" style="margin:0in 0in .0001pt;page-break-after:avoid;text-align:center;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="77" rowspan="2" valign="bottom" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0in 1.45pt 0in 1.45pt;width:58.05pt;">
  <p align="center" style="margin:0in 0in .0001pt;page-break-after:avoid;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Number<br>
  of<br>
  Properties </font><font size="1" style="font-size:6.5pt;position:relative;top:-3.0pt;">(1)</font></p>
  </td>
  <td width="6" valign="bottom" style="padding:0in 1.45pt 0in 1.45pt;width:4.5pt;">
  <p align="center" style="margin:0in 0in .0001pt;page-break-after:avoid;text-align:center;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="156" colspan="5" valign="bottom" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0in 1.45pt 0in 1.45pt;width:117.15pt;">
  <p align="center" style="margin:0in 0in .0001pt;page-break-after:avoid;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Number of</font></p>
  </td>
  <td width="66" rowspan="2" valign="bottom" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0in 1.45pt 0in 1.45pt;width:49.5pt;">
  <p align="center" style="margin:0in 0in .0001pt;page-break-after:avoid;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Investment <br>
  per <br>
  Bed/Unit</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="155" valign="bottom" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0in 1.45pt 0in 1.45pt;width:116.1pt;">
  <p align="center" style="margin:0in 0in .0001pt;page-break-after:avoid;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Type of Property</font></p>
  </td>
  <td width="12" valign="bottom" style="padding:0in 1.45pt 0in 1.45pt;width:9.0pt;">
  <p align="center" style="margin:0in 0in .0001pt;page-break-after:avoid;text-align:center;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="78" valign="bottom" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0in 1.45pt 0in 1.45pt;width:58.5pt;">
  <p align="center" style="margin:0in 0in .0001pt;page-break-after:avoid;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Gross<br>
  Investments</font></p>
  </td>
  <td width="6" valign="bottom" style="padding:0in 1.45pt 0in 1.45pt;width:4.5pt;">
  <p align="center" style="margin:0in 0in .0001pt;page-break-after:avoid;text-align:center;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="6" valign="bottom" style="padding:0in 1.45pt 0in 1.45pt;width:4.5pt;">
  <p align="center" style="margin:0in 0in .0001pt;page-break-after:avoid;text-align:center;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="60" valign="bottom" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0in 1.45pt 0in 1.45pt;width:45.0pt;">
  <p align="center" style="margin:0in 0in .0001pt;page-break-after:avoid;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Number of Loans</font></p>
  </td>
  <td width="6" valign="bottom" style="padding:0in 1.45pt 0in 1.45pt;width:4.5pt;">
  <p align="center" style="margin:0in 0in .0001pt;page-break-after:avoid;text-align:center;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="6" valign="bottom" style="padding:0in 1.45pt 0in 1.45pt;width:4.5pt;">
  <p align="center" style="margin:0in 0in .0001pt;page-break-after:avoid;text-align:center;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="48" valign="bottom" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0in 1.45pt 0in 1.45pt;width:.5in;">
  <p align="center" style="margin:0in 0in .0001pt;page-break-after:avoid;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">SNF Beds </font></p>
  </td>
  <td width="6" valign="bottom" style="border:none;border-top:solid windowtext 1.0pt;padding:0in 1.45pt 0in 1.45pt;width:4.5pt;">
  <p align="center" style="margin:0in 0in .0001pt;page-break-after:avoid;text-align:center;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="48" valign="bottom" style="border-bottom:solid windowtext 1.0pt;border-left:none;border-right:none;border-top:solid windowtext 1.0pt;padding:0in 1.45pt 0in 1.45pt;width:36.15pt;">
  <p align="center" style="margin:0in 0in .0001pt;page-break-after:avoid;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">ALF<br>
  Units</font></p>
  </td>
  <td width="6" valign="bottom" style="border:none;border-top:solid windowtext 1.0pt;padding:0in 1.45pt 0in 1.45pt;width:4.5pt;">
  <p align="center" style="margin:0in 0in .0001pt;page-break-after:avoid;text-align:center;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="48" valign="bottom" style="border-bottom:solid windowtext 1.0pt;border-left:none;border-right:none;border-top:solid windowtext 1.0pt;padding:0in 1.45pt 0in 1.45pt;width:.5in;">
  <p align="center" style="margin:0in 0in .0001pt;page-break-after:avoid;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">ILF<br>
  Units</font></p>
  </td>
 </tr>
 <tr>
  <td width="155" valign="top" style="border:none;padding:0in 1.45pt 0in 1.45pt;width:116.1pt;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Assisted Living Properties</font></p>
  </td>
  <td width="12" valign="bottom" style="padding:0in 1.45pt 0in 1.45pt;width:9.0pt;">
  <p style="margin:0in 0in .0001pt;page-break-after:avoid;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="78" valign="bottom" style="border:none;padding:0in 1.45pt 0in 1.45pt;width:58.5pt;">
  <p align="right" style="margin:0in .2in .0001pt 0in;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">$24,907</font></p>
  </td>
  <td width="6" valign="bottom" style="padding:0in 1.45pt 0in 1.45pt;width:4.5pt;">
  <p style="margin:0in 0in .0001pt;page-break-after:avoid;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="72" valign="bottom" style="border:none;padding:0in 1.45pt 0in 1.45pt;width:.75in;">
  <p align="right" style="margin:0in .2in .0001pt 0in;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">36.3%</font></p>
  </td>
  <td width="6" valign="bottom" style="padding:0in 1.45pt 0in 1.45pt;width:4.5pt;">
  <p style="margin:0in 0in .0001pt;page-break-after:avoid;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="60" valign="bottom" style="border:none;padding:0in 1.45pt 0in 1.45pt;width:45.0pt;">
  <p align="right" style="margin:0in .2in .0001pt 0in;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">10</font></p>
  </td>
  <td width="6" valign="bottom" style="padding:0in 1.45pt 0in 1.45pt;width:4.5pt;">
  <p style="margin:0in 0in .0001pt;page-break-after:avoid;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="77" valign="bottom" style="border:none;padding:0in 1.45pt 0in 1.45pt;width:58.05pt;">
  <p align="right" style="margin:0in .2in .0001pt 0in;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">15</font></p>
  </td>
  <td width="6" valign="bottom" style="padding:0in 1.45pt 0in 1.45pt;width:4.5pt;">
  <p style="margin:0in 0in .0001pt;page-break-after:avoid;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="48" valign="bottom" style="border:none;padding:0in 1.45pt 0in 1.45pt;width:.5in;">
  <p align="right" style="margin:0in .1in .0001pt 0in;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#151;</font></p>
  </td>
  <td width="6" valign="bottom" style="padding:0in 1.45pt 0in 1.45pt;width:4.5pt;">
  <p style="margin:0in 0in .0001pt;page-break-after:avoid;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="48" valign="bottom" style="border:none;padding:0in 1.45pt 0in 1.45pt;width:36.15pt;">
  <p align="right" style="margin:0in .1in .0001pt 0in;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">589</font></p>
  </td>
  <td width="6" valign="top" style="padding:0in 1.45pt 0in 1.45pt;width:4.5pt;">
  <p style="margin:0in 0in .0001pt;page-break-after:avoid;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="48" valign="bottom" style="border:none;padding:0in 1.45pt 0in 1.45pt;width:.5in;">
  <p align="right" style="margin:0in .1in .0001pt 0in;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#151;</font></p>
  </td>
  <td width="66" valign="bottom" style="border:none;padding:0in 1.45pt 0in 1.45pt;width:49.5pt;">
  <p align="right" style="margin:0in .2in .0001pt 0in;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">$42.29</font></p>
  </td>
 </tr>
 <tr>
  <td width="155" valign="top" bgcolor="#CCFFFF" style="background:#CCFFFF;padding:0in 1.45pt 0in 1.45pt;width:116.1pt;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Skilled Nursing Properties</font></p>
  </td>
  <td width="12" valign="bottom" bgcolor="#CCFFFF" style="background:#CCFFFF;padding:0in 1.45pt 0in 1.45pt;width:9.0pt;">
  <p style="margin:0in 0in .0001pt;page-break-after:avoid;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="78" valign="bottom" bgcolor="#CCFFFF" style="background:#CCFFFF;padding:0in 1.45pt 0in 1.45pt;width:58.5pt;">
  <p align="right" style="margin:0in .2in .0001pt 0in;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">36,591</font></p>
  </td>
  <td width="6" valign="bottom" bgcolor="#CCFFFF" style="background:#CCFFFF;padding:0in 1.45pt 0in 1.45pt;width:4.5pt;">
  <p style="margin:0in 0in .0001pt;page-break-after:avoid;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="72" valign="bottom" bgcolor="#CCFFFF" style="background:#CCFFFF;padding:0in 1.45pt 0in 1.45pt;width:.75in;">
  <p align="right" style="margin:0in .2in .0001pt 0in;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">53.3%</font></p>
  </td>
  <td width="6" valign="bottom" bgcolor="#CCFFFF" style="background:#CCFFFF;padding:0in 1.45pt 0in 1.45pt;width:4.5pt;">
  <p style="margin:0in 0in .0001pt;page-break-after:avoid;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="60" valign="bottom" bgcolor="#CCFFFF" style="background:#CCFFFF;padding:0in 1.45pt 0in 1.45pt;width:45.0pt;">
  <p align="right" style="margin:0in .2in .0001pt 0in;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">28</font></p>
  </td>
  <td width="6" valign="bottom" bgcolor="#CCFFFF" style="background:#CCFFFF;padding:0in 1.45pt 0in 1.45pt;width:4.5pt;">
  <p style="margin:0in 0in .0001pt;page-break-after:avoid;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="77" valign="bottom" bgcolor="#CCFFFF" style="background:#CCFFFF;padding:0in 1.45pt 0in 1.45pt;width:58.05pt;">
  <p align="right" style="margin:0in .2in .0001pt 0in;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">35</font></p>
  </td>
  <td width="6" valign="bottom" bgcolor="#CCFFFF" style="background:#CCFFFF;padding:0in 1.45pt 0in 1.45pt;width:4.5pt;">
  <p style="margin:0in 0in .0001pt;page-break-after:avoid;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="48" valign="bottom" bgcolor="#CCFFFF" style="background:#CCFFFF;padding:0in 1.45pt 0in 1.45pt;width:.5in;">
  <p align="right" style="margin:0in .1in .0001pt 0in;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">4,011</font></p>
  </td>
  <td width="6" valign="bottom" bgcolor="#CCFFFF" style="background:#CCFFFF;padding:0in 1.45pt 0in 1.45pt;width:4.5pt;">
  <p style="margin:0in 0in .0001pt;page-break-after:avoid;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="48" valign="bottom" bgcolor="#CCFFFF" style="background:#CCFFFF;padding:0in 1.45pt 0in 1.45pt;width:36.15pt;">
  <p align="right" style="margin:0in .1in .0001pt 0in;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#151;</font></p>
  </td>
  <td width="6" valign="top" bgcolor="#CCFFFF" style="background:#CCFFFF;padding:0in 1.45pt 0in 1.45pt;width:4.5pt;">
  <p style="margin:0in 0in .0001pt;page-break-after:avoid;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="48" valign="bottom" bgcolor="#CCFFFF" style="background:#CCFFFF;padding:0in 1.45pt 0in 1.45pt;width:.5in;">
  <p align="right" style="margin:0in .1in .0001pt 0in;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#151;</font></p>
  </td>
  <td width="66" valign="bottom" bgcolor="#CCFFFF" style="background:#CCFFFF;padding:0in 1.45pt 0in 1.45pt;width:49.5pt;">
  <p align="right" style="margin:0in .2in .0001pt 0in;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">$&nbsp;&nbsp;9.12</font></p>
  </td>
 </tr>
 <tr>
  <td width="155" valign="top" style="padding:0in 1.45pt 0in 1.45pt;width:116.1pt;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Other Properties </font><font size="1" style="font-size:6.5pt;position:relative;top:-3.0pt;">(2)</font></p>
  </td>
  <td width="12" valign="bottom" style="padding:0in 1.45pt 0in 1.45pt;width:9.0pt;">
  <p style="margin:0in 0in .0001pt;page-break-after:avoid;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="78" valign="bottom" style="padding:0in 1.45pt 0in 1.45pt;width:58.5pt;">
  <p align="right" style="margin:0in .2in .0001pt 0in;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">3,396</font></p>
  </td>
  <td width="6" valign="bottom" style="padding:0in 1.45pt 0in 1.45pt;width:4.5pt;">
  <p style="margin:0in 0in .0001pt;page-break-after:avoid;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="72" valign="bottom" style="padding:0in 1.45pt 0in 1.45pt;width:.75in;">
  <p align="right" style="margin:0in .2in .0001pt 0in;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">4.9%</font></p>
  </td>
  <td width="6" valign="bottom" style="padding:0in 1.45pt 0in 1.45pt;width:4.5pt;">
  <p style="margin:0in 0in .0001pt;page-break-after:avoid;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="60" valign="bottom" style="padding:0in 1.45pt 0in 1.45pt;width:45.0pt;">
  <p align="right" style="margin:0in .2in .0001pt 0in;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">1</font></p>
  </td>
  <td width="6" valign="bottom" style="padding:0in 1.45pt 0in 1.45pt;width:4.5pt;">
  <p style="margin:0in 0in .0001pt;page-break-after:avoid;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="77" valign="bottom" style="padding:0in 1.45pt 0in 1.45pt;width:58.05pt;">
  <p align="right" style="margin:0in .2in .0001pt 0in;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">1</font></p>
  </td>
  <td width="6" valign="bottom" style="padding:0in 1.45pt 0in 1.45pt;width:4.5pt;">
  <p style="margin:0in 0in .0001pt;page-break-after:avoid;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="48" valign="bottom" style="padding:0in 1.45pt 0in 1.45pt;width:.5in;">
  <p align="right" style="margin:0in .1in .0001pt 0in;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">99</font></p>
  </td>
  <td width="6" valign="bottom" style="padding:0in 1.45pt 0in 1.45pt;width:4.5pt;">
  <p style="margin:0in 0in .0001pt;page-break-after:avoid;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="48" valign="bottom" style="padding:0in 1.45pt 0in 1.45pt;width:36.15pt;">
  <p align="right" style="margin:0in .1in .0001pt 0in;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">74</font></p>
  </td>
  <td width="6" valign="top" style="padding:0in 1.45pt 0in 1.45pt;width:4.5pt;">
  <p style="margin:0in 0in .0001pt;page-break-after:avoid;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="48" valign="bottom" style="padding:0in 1.45pt 0in 1.45pt;width:.5in;">
  <p align="right" style="margin:0in .1in .0001pt 0in;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#151;</font></p>
  </td>
  <td width="66" valign="bottom" style="padding:0in 1.45pt 0in 1.45pt;width:49.5pt;">
  <p align="right" style="margin:0in .2in .0001pt 0in;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">$19.63</font></p>
  </td>
 </tr>
 <tr>
  <td width="155" valign="top" bgcolor="#CCFFFF" style="background:#CCFFFF;padding:0in 1.45pt 0in 1.45pt;width:116.1pt;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">School </font><font size="1" style="font-size:6.5pt;position:relative;top:-3.0pt;">(3)</font></p>
  </td>
  <td width="12" valign="bottom" bgcolor="#CCFFFF" style="background:#CCFFFF;padding:0in 1.45pt 0in 1.45pt;width:9.0pt;">
  <p style="margin:0in 0in .0001pt;page-break-after:avoid;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="78" valign="bottom" bgcolor="#CCFFFF" style="background:#CCFFFF;border:none;border-bottom:solid windowtext 1.0pt;padding:0in 1.45pt 0in 1.45pt;width:58.5pt;">
  <p align="right" style="margin:0in .2in .0001pt 0in;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">3,750</font></p>
  </td>
  <td width="6" valign="bottom" bgcolor="#CCFFFF" style="background:#CCFFFF;padding:0in 1.45pt 0in 1.45pt;width:4.5pt;">
  <p style="margin:0in 0in .0001pt;page-break-after:avoid;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="72" valign="bottom" bgcolor="#CCFFFF" style="background:#CCFFFF;border:none;border-bottom:solid windowtext 1.0pt;padding:0in 1.45pt 0in 1.45pt;width:.75in;">
  <p align="right" style="margin:0in .2in .0001pt 0in;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">5.5%</font></p>
  </td>
  <td width="6" valign="bottom" bgcolor="#CCFFFF" style="background:#CCFFFF;padding:0in 1.45pt 0in 1.45pt;width:4.5pt;">
  <p style="margin:0in 0in .0001pt;page-break-after:avoid;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="60" valign="bottom" bgcolor="#CCFFFF" style="background:#CCFFFF;border:none;border-bottom:solid windowtext 1.0pt;padding:0in 1.45pt 0in 1.45pt;width:45.0pt;">
  <p align="right" style="margin:0in .2in .0001pt 0in;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">1</font></p>
  </td>
  <td width="6" valign="bottom" bgcolor="#CCFFFF" style="background:#CCFFFF;padding:0in 1.45pt 0in 1.45pt;width:4.5pt;">
  <p style="margin:0in 0in .0001pt;page-break-after:avoid;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="77" valign="bottom" bgcolor="#CCFFFF" style="background:#CCFFFF;border:none;border-bottom:solid windowtext 1.0pt;padding:0in 1.45pt 0in 1.45pt;width:58.05pt;">
  <p align="right" style="margin:0in .2in .0001pt 0in;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">1</font></p>
  </td>
  <td width="6" valign="bottom" bgcolor="#CCFFFF" style="background:#CCFFFF;padding:0in 1.45pt 0in 1.45pt;width:4.5pt;">
  <p style="margin:0in 0in .0001pt;page-break-after:avoid;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="48" valign="bottom" bgcolor="#CCFFFF" style="background:#CCFFFF;border:none;border-bottom:solid windowtext 1.0pt;padding:0in 1.45pt 0in 1.45pt;width:.5in;">
  <p align="right" style="margin:0in .1in .0001pt 0in;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">N/A</font></p>
  </td>
  <td width="6" valign="bottom" bgcolor="#CCFFFF" style="background:#CCFFFF;padding:0in 1.45pt 0in 1.45pt;width:4.5pt;">
  <p style="margin:0in 0in .0001pt;page-break-after:avoid;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="48" valign="bottom" bgcolor="#CCFFFF" style="background:#CCFFFF;border:none;border-bottom:solid windowtext 1.0pt;padding:0in 1.45pt 0in 1.45pt;width:36.15pt;">
  <p align="right" style="margin:0in .1in .0001pt 0in;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">N/A</font></p>
  </td>
  <td width="6" valign="top" bgcolor="#CCFFFF" style="background:#CCFFFF;padding:0in 1.45pt 0in 1.45pt;width:4.5pt;">
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="48" valign="bottom" bgcolor="#CCFFFF" style="background:#CCFFFF;border:none;border-bottom:solid windowtext 1.0pt;padding:0in 1.45pt 0in 1.45pt;width:.5in;">
  <p align="right" style="margin:0in .1in .0001pt 0in;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">N/A</font></p>
  </td>
  <td width="66" valign="bottom" bgcolor="#CCFFFF" style="background:#CCFFFF;padding:0in 1.45pt 0.375pt 1.45pt;width:49.5pt;">
  <p align="right" style="margin:0in .2in .0001pt 0in;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">N/A</font></p>
  </td>
 </tr>
 <tr>
  <td width="155" valign="top" style="padding:0in 1.45pt 0in 1.45pt;width:116.1pt;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Totals</font></p>
  </td>
  <td width="12" valign="bottom" style="padding:0in 1.45pt 0in 1.45pt;width:9.0pt;">
  <p style="margin:0in 0in .0001pt;page-break-after:avoid;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="78" valign="bottom" style="border:none;border-bottom:double windowtext 2.25pt;padding:0in 1.45pt 0in 1.45pt;width:58.5pt;">
  <p align="right" style="margin:0in .2in .0001pt 0in;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">$68,644</font></p>
  </td>
  <td width="6" valign="bottom" style="padding:0in 1.45pt 0in 1.45pt;width:4.5pt;">
  <p style="margin:0in 0in .0001pt;page-break-after:avoid;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="72" valign="bottom" style="border:none;border-bottom:double windowtext 2.25pt;padding:0in 1.45pt 0in 1.45pt;width:.75in;">
  <p align="right" style="margin:0in .2in .0001pt 0in;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">100.0%</font></p>
  </td>
  <td width="6" valign="bottom" style="padding:0in 1.45pt 0in 1.45pt;width:4.5pt;">
  <p style="margin:0in 0in .0001pt;page-break-after:avoid;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="60" valign="bottom" style="border:none;border-bottom:double windowtext 2.25pt;padding:0in 1.45pt 0in 1.45pt;width:45.0pt;">
  <p align="right" style="margin:0in .2in .0001pt 0in;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">40</font></p>
  </td>
  <td width="6" valign="bottom" style="padding:0in 1.45pt 0in 1.45pt;width:4.5pt;">
  <p style="margin:0in 0in .0001pt;page-break-after:avoid;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="77" valign="bottom" style="border:none;border-bottom:double windowtext 2.25pt;padding:0in 1.45pt 0in 1.45pt;width:58.05pt;">
  <p align="right" style="margin:0in .2in .0001pt 0in;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">52</font></p>
  </td>
  <td width="6" valign="bottom" style="padding:0in 1.45pt 0in 1.45pt;width:4.5pt;">
  <p style="margin:0in 0in .0001pt;page-break-after:avoid;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="48" valign="bottom" style="border:none;border-bottom:double windowtext 2.25pt;padding:0in 1.45pt 0in 1.45pt;width:.5in;">
  <p align="right" style="margin:0in .1in .0001pt 0in;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">4,110</font></p>
  </td>
  <td width="6" valign="bottom" style="padding:0in 1.45pt 0in 1.45pt;width:4.5pt;">
  <p style="margin:0in 0in .0001pt;page-break-after:avoid;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="48" valign="bottom" style="border:none;border-bottom:double windowtext 2.25pt;padding:0in 1.45pt 0in 1.45pt;width:36.15pt;">
  <p align="right" style="margin:0in .1in .0001pt 0in;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">663</font></p>
  </td>
  <td width="6" valign="top" style="padding:0in 1.45pt 0in 1.45pt;width:4.5pt;">
  <p style="margin:0in 0in .0001pt;page-break-after:avoid;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="48" valign="bottom" style="border:none;border-bottom:double windowtext 2.25pt;padding:0in 1.45pt 0in 1.45pt;width:.5in;">
  <p align="right" style="margin:0in .1in .0001pt 0in;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#151;</font></p>
  </td>
  <td width="66" valign="bottom" style="padding:0in 1.45pt 0in 1.45pt;width:49.5pt;">
  <p align="right" style="margin:0in .2in .0001pt 0in;text-align:right;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
 </tr>
</table>

</div>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<div style="margin:0in 0in .0001pt 40.5pt;text-indent:-.25in;"><hr size="1" width="15%" noshade color="black" align="left"></div>

<p style="margin:0in 0in .0001pt 43.9pt;text-indent:-.3in;"><font size="1" face="Times New Roman" style="font-size:8.0pt;">(1)&#160;&#160;&#160;&#160; We have investments in 14 states that
include mortgages to 21 different operators.</font></p>

<p style="margin:0in 0in .0001pt 36.7pt;text-indent:-.2in;"><font size="1" face="Times New Roman" style="font-size:8.0pt;">(2)&#160; Other properties consist of independent living
properties and properties providing any combination of skilled nursing,
assisted living and/or independent living services.</font></p>

<p style="margin:0in 0in .0001pt 43.9pt;text-indent:-.3in;"><font size="1" face="Times New Roman" style="font-size:8.0pt;">(3)&#160;&#160;&#160;&#160; This loan is currently non-performing.&#160; See below for further discussion.</font></p>

<p style="margin:0in 0in .0001pt 40.5pt;text-indent:-.25in;"><font size="1" face="Times New Roman" style="font-size:8.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:11.0pt;">At June&nbsp;30,
2010, the performing mortgage loans had interest rates ranging from 9.7% to
14.0% and maturities ranging from 2011 to 2019.&#160;
In addition, some loans contain certain guarantees, provide for certain
facility fees and generally have 20-year to 25-year amortization schedules.&#160; The majority of the mortgage loans provide
for annual increases in the interest rate based upon a specified increase of 10
to 25 basis points.</font></p>

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:11.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:11.0pt;">During the six
months ended June&nbsp;30, 2010, we invested $72,000 under one mortgage loan
for capital improvements and we received $1,957,000 in regularly scheduled principal
payments.&#160; During the six months ended
June&nbsp;30, 2010, we recorded an $852,000 provision for doubtful accounts
related to a mortgage loan secured by a private school property located in
Minnesota.&#160; On April&nbsp;20, 2010, we
received notice from the borrower that it had ceased operations.&#160; Prior to that notice, the borrower was
current with all loan payments. The borrower has filed for Chapter 7 bankruptcy
and we have filed a Motion for Relief from Stay.&#160; If relief is granted by the court, we will
either (i)&nbsp;record the existing Deed-in-Lieu, or (ii)&nbsp;initiate
foreclosure proceedings.</font></p>

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:11.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:11.0pt;">Subsequent to June&nbsp;30,
2010, we invested $1,622,000, before closing fees of $64,000, in a mortgage
loan secured by a skilled nursing property located in Missouri to finance an expansion
of the property and extend the loan maturity for an additional five years to January&nbsp;2018.&#160; The current interest rate is 10.9%,
increasing 0.13% annually.</font></p>

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:11.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:11.0pt;">During the six
months ended June&nbsp;30, 2009, we received $1,986,000 plus accrued interest
related to the payoff of a mortgage loan secured by a skilled nursing property
with 120 beds located in Tennessee.&#160;
Additionally, we invested $216,000 under one mortgage loan for capital
improvements.&#160; We received $2,210,000 in
regularly scheduled principal payments.</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">7<a name="PB_7_223136_7748"></a></font></p>

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<div style="font-family:Times New Roman;">

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><b><font size="3" face="Times New Roman" style="font-size:11.5pt;font-weight:bold;">LTC PROPERTIES,&nbsp;INC.</font></b></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><b><font size="3" face="Times New Roman" style="font-size:11.5pt;font-weight:bold;">NOTES TO CONSOLIDATED FINANCIAL STATEMENTS </font></b><b><font size="1" style="font-size:9.0pt;font-weight:bold;">CONTINUED</font></b></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><b><font size="3" face="Times New Roman" style="font-size:11.5pt;font-weight:bold;">(Unaudited)</font></b></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><i><font size="2" face="Times New Roman" style="font-size:10.0pt;font-style:italic;">Owned Properties.</font></i><font size="2" style="font-size:10.0pt;"> The following table summarizes our
investments in owned properties at June&nbsp;30, 2010 <i>(in thousands)</i>:</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<div align="center">

<table border="0" cellspacing="0" cellpadding="0" width="100%" style="border-collapse:collapse;width:100.0%;">
 <tr height="49" style="height:36.9pt;">
  <td width="21%" height="49" valign="bottom" style="height:36.9pt;padding:0in 1.45pt 0in 1.45pt;width:21.08%;">
  <p align="center" style="margin:0in 0in .0001pt;page-break-after:avoid;text-align:center;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="0%" height="49" valign="bottom" style="height:36.9pt;padding:0in 1.45pt 0in 1.45pt;width:.72%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="10%" height="49" valign="bottom" style="height:36.9pt;padding:0in 1.45pt 0in 1.45pt;width:10.34%;">
  <p align="center" style="margin:0in 0in .0001pt;page-break-after:avoid;text-align:center;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="1%" height="49" valign="bottom" style="height:36.9pt;padding:0in 1.45pt 0in 1.45pt;width:1.04%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="11%" height="49" valign="bottom" style="height:36.9pt;padding:0in 1.45pt 0in 1.45pt;width:11.02%;">
  <p align="center" style="margin:0in 0in .0001pt;page-break-after:avoid;text-align:center;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="1%" height="49" valign="bottom" style="height:36.9pt;padding:0in 1.45pt 0in 1.45pt;width:1.6%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="11%" rowspan="2" valign="bottom" style="border:none;border-bottom:solid windowtext 1.0pt;height:36.9pt;padding:0in 1.45pt 0in 1.45pt;width:11.0%;">
  <p align="center" style="margin:0in 0in .0001pt;page-break-after:avoid;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Number<br>
  of<br>
  Properties&nbsp;</font><font size="1" style="font-size:6.5pt;position:relative;top:-3.0pt;">(1)</font></p>
  </td>
  <td width="1%" height="49" valign="bottom" style="height:36.9pt;padding:0in 1.45pt 0in 1.45pt;width:1.5%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="28%" colspan="6" height="49" valign="bottom" style="border:none;border-bottom:solid windowtext 1.0pt;height:36.9pt;padding:0in 1.45pt 0in 1.45pt;width:28.34%;">
  <p align="center" style="margin:0in 0in .0001pt;page-break-after:avoid;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Number of</font></p>
  </td>
  <td width="1%" height="49" valign="bottom" style="height:36.9pt;padding:0in 1.45pt 0in 1.45pt;width:1.96%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="11%" rowspan="2" valign="bottom" style="border:none;border-bottom:solid windowtext 1.0pt;height:36.9pt;padding:0in 1.45pt 0in 1.45pt;width:11.4%;">
  <p align="center" style="margin:0in 0in .0001pt;page-break-after:avoid;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Investment <br>
  per <br>
  Bed/Unit</font></p>
  </td>
 </tr>
 <tr>
  <td width="21%" valign="bottom" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0in 1.45pt 0in 1.45pt;width:21.08%;">
  <p align="center" style="margin:0in 0in .0001pt;page-break-after:avoid;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Type of Property</font></p>
  </td>
  <td width="0%" valign="bottom" style="padding:0in 1.45pt 0in 1.45pt;width:.72%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="10%" valign="bottom" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0in 1.45pt 0in 1.45pt;width:10.34%;">
  <p align="center" style="margin:0in 0in .0001pt;page-break-after:avoid;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Gross<br>
  Investments</font></p>
  </td>
  <td width="1%" valign="bottom" style="padding:0in 1.45pt 0in 1.45pt;width:1.04%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="11%" valign="bottom" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0in 1.45pt 0in 1.45pt;width:11.02%;">
  <p align="center" style="margin:0in 0in .0001pt;page-break-after:avoid;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Percentage of Investments</font></p>
  </td>
  <td width="1%" valign="bottom" style="padding:0in 1.45pt 0in 1.45pt;width:1.6%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="1%" valign="bottom" style="padding:0in 1.45pt 0in 1.45pt;width:1.5%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="7%" colspan="2" valign="bottom" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0in 1.45pt 0in 1.45pt;width:7.8%;">
  <p align="center" style="margin:0in 0in .0001pt;page-break-after:avoid;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">SNF<br>
  Beds</font></p>
  </td>
  <td width="1%" valign="bottom" style="border:none;border-top:solid windowtext 1.0pt;padding:0in 1.45pt 0in 1.45pt;width:1.72%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="9%" valign="bottom" style="border-bottom:solid windowtext 1.0pt;border-left:none;border-right:none;border-top:solid windowtext 1.0pt;padding:0in 1.45pt 0in 1.45pt;width:9.0%;">
  <p align="center" style="margin:0in 0in .0001pt;page-break-after:avoid;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">ALF<br>
  Units</font></p>
  </td>
  <td width="1%" valign="bottom" style="border:none;border-top:solid windowtext 1.0pt;padding:0in 1.45pt 0in 1.45pt;width:1.62%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="8%" valign="bottom" style="border-bottom:solid windowtext 1.0pt;border-left:none;border-right:none;border-top:solid windowtext 1.0pt;padding:0in 1.45pt 0in 1.45pt;width:8.2%;">
  <p align="center" style="margin:0in 0in .0001pt;page-break-after:avoid;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">ILF<br>
  Units</font></p>
  </td>
  <td width="1%" valign="bottom" style="padding:0in 1.45pt 0in 1.45pt;width:1.96%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr height="22" style="height:16.15pt;">
  <td width="21%" height="22" valign="bottom" style="border:none;height:16.15pt;padding:0in 1.45pt 0in 1.45pt;width:21.08%;">
  <p style="margin:0in 0in .0001pt;page-break-after:avoid;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Assisted
  Living Properties</font></p>
  </td>
  <td width="0%" height="22" valign="bottom" style="height:16.15pt;padding:0in 1.45pt 0in 1.45pt;width:.72%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="10%" height="22" valign="bottom" style="border:none;height:16.15pt;padding:0in 1.45pt 0in 1.45pt;width:10.34%;">
  <p align="right" style="margin:0in .1in .0001pt 0in;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">$256,668</font></p>
  </td>
  <td width="1%" height="22" valign="bottom" style="height:16.15pt;padding:0in 1.45pt 0in 1.45pt;width:1.04%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="11%" height="22" valign="bottom" style="border:none;height:16.15pt;padding:0in 1.45pt 0in 1.45pt;width:11.02%;">
  <p align="right" style="margin:0in .2in .0001pt 0in;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">45.8%</font></p>
  </td>
  <td width="1%" height="22" valign="bottom" style="height:16.15pt;padding:0in 1.45pt 0in 1.45pt;width:1.6%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="11%" height="22" valign="bottom" style="border:none;height:16.15pt;padding:0in 1.45pt 0in 1.45pt;width:11.0%;">
  <p align="right" style="margin:0in .2in .0001pt 0in;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">84</font></p>
  </td>
  <td width="1%" height="22" valign="bottom" style="height:16.15pt;padding:0in 1.45pt 0in 1.45pt;width:1.5%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="5%" height="22" valign="bottom" style="border:none;height:16.15pt;padding:0in 1.45pt 0in 1.45pt;width:5.96%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#151;</font></p>
  </td>
  <td width="1%" height="22" valign="bottom" style="border:none;border-top:solid windowtext 1.0pt;height:16.15pt;padding:0in 1.45pt 0in 1.45pt;width:1.84%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="1%" height="22" valign="top" style="height:16.15pt;padding:0in 1.45pt 0in 1.45pt;width:1.72%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="9%" height="22" valign="bottom" style="border:none;height:16.15pt;padding:0in 1.45pt 0in 1.45pt;width:9.0%;">
  <p align="right" style="margin:0in .2in .0001pt 0in;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">3,700</font></p>
  </td>
  <td width="1%" height="22" valign="top" style="height:16.15pt;padding:0in 1.45pt 0in 1.45pt;width:1.62%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="8%" height="22" valign="bottom" style="border:none;height:16.15pt;padding:0in 1.45pt 0in 1.45pt;width:8.2%;">
  <p align="right" style="margin:0in .2in .0001pt 0in;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#151;</font></p>
  </td>
  <td width="1%" height="22" valign="bottom" style="height:16.15pt;padding:0in 1.45pt 0in 1.45pt;width:1.96%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="11%" height="22" valign="bottom" style="border:none;height:16.15pt;padding:0in 1.45pt 0in 1.45pt;width:11.4%;">
  <p align="right" style="margin:0in .2in .0001pt 0in;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">$69.37</font></p>
  </td>
 </tr>
 <tr height="17" style="height:13.05pt;">
  <td width="21%" height="17" valign="bottom" bgcolor="#CCFFFF" style="background:#CCFFFF;height:13.05pt;padding:0in 1.45pt 0in 1.45pt;width:21.08%;">
  <p style="margin:0in 0in .0001pt;page-break-after:avoid;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Skilled
  Nursing Properties</font></p>
  </td>
  <td width="0%" height="17" valign="bottom" bgcolor="#CCFFFF" style="background:#CCFFFF;height:13.05pt;padding:0in 1.45pt 0in 1.45pt;width:.72%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="10%" height="17" valign="bottom" bgcolor="#CCFFFF" style="background:#CCFFFF;height:13.05pt;padding:0in 1.45pt 0in 1.45pt;width:10.34%;">
  <p align="right" style="margin:0in .1in .0001pt 0in;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">242,507</font></p>
  </td>
  <td width="1%" height="17" valign="bottom" bgcolor="#CCFFFF" style="background:#CCFFFF;height:13.05pt;padding:0in 1.45pt 0in 1.45pt;width:1.04%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="11%" height="17" valign="bottom" bgcolor="#CCFFFF" style="background:#CCFFFF;height:13.05pt;padding:0in 1.45pt 0in 1.45pt;width:11.02%;">
  <p align="right" style="margin:0in .2in .0001pt 0in;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">43.3%</font></p>
  </td>
  <td width="1%" height="17" valign="bottom" bgcolor="#CCFFFF" style="background:#CCFFFF;height:13.05pt;padding:0in 1.45pt 0in 1.45pt;width:1.6%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="11%" height="17" valign="bottom" bgcolor="#CCFFFF" style="background:#CCFFFF;height:13.05pt;padding:0in 1.45pt 0in 1.45pt;width:11.0%;">
  <p align="right" style="margin:0in .2in .0001pt 0in;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">60</font></p>
  </td>
  <td width="1%" height="17" valign="bottom" bgcolor="#CCFFFF" style="background:#CCFFFF;height:13.05pt;padding:0in 1.45pt 0in 1.45pt;width:1.5%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="5%" height="17" valign="bottom" bgcolor="#CCFFFF" style="background:#CCFFFF;height:13.05pt;padding:0in 1.45pt 0in 1.45pt;width:5.96%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">6,908</font></p>
  </td>
  <td width="1%" height="17" valign="bottom" bgcolor="#CCFFFF" style="background:#CCFFFF;height:13.05pt;padding:0in 1.45pt 0in 1.45pt;width:1.84%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="1%" height="17" valign="top" bgcolor="#CCFFFF" style="background:#CCFFFF;height:13.05pt;padding:0in 1.45pt 0in 1.45pt;width:1.72%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="9%" height="17" valign="bottom" bgcolor="#CCFFFF" style="background:#CCFFFF;height:13.05pt;padding:0in 1.45pt 0in 1.45pt;width:9.0%;">
  <p align="right" style="margin:0in .2in .0001pt 0in;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#151;</font></p>
  </td>
  <td width="1%" height="17" valign="top" bgcolor="#CCFFFF" style="background:#CCFFFF;height:13.05pt;padding:0in 1.45pt 0in 1.45pt;width:1.62%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="8%" height="17" valign="bottom" bgcolor="#CCFFFF" style="background:#CCFFFF;height:13.05pt;padding:0in 1.45pt 0in 1.45pt;width:8.2%;">
  <p align="right" style="margin:0in .2in .0001pt 0in;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#151;</font></p>
  </td>
  <td width="1%" height="17" valign="bottom" bgcolor="#CCFFFF" style="background:#CCFFFF;height:13.05pt;padding:0in 1.45pt 0in 1.45pt;width:1.96%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="11%" height="17" valign="bottom" bgcolor="#CCFFFF" style="background:#CCFFFF;height:13.05pt;padding:0in 1.45pt 0in 1.45pt;width:11.4%;">
  <p align="right" style="margin:0in .2in .0001pt 0in;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">$35.11</font></p>
  </td>
 </tr>
 <tr height="17" style="height:13.05pt;">
  <td width="21%" height="17" valign="bottom" style="height:13.05pt;padding:0in 1.45pt 0in 1.45pt;width:21.08%;">
  <p style="margin:0in 0in .0001pt;page-break-after:avoid;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Other
  Properties</font><font size="1" style="font-size:6.5pt;position:relative;top:-3.0pt;"> (2)</font></p>
  </td>
  <td width="0%" height="17" valign="bottom" style="height:13.05pt;padding:0in 1.45pt 0in 1.45pt;width:.72%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="10%" height="17" valign="bottom" style="height:13.05pt;padding:0in 1.45pt 0in 1.45pt;width:10.34%;">
  <p align="right" style="margin:0in .1in .0001pt 0in;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">51,809</font></p>
  </td>
  <td width="1%" height="17" valign="bottom" style="height:13.05pt;padding:0in 1.45pt 0in 1.45pt;width:1.04%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="11%" height="17" valign="bottom" style="height:13.05pt;padding:0in 1.45pt 0in 1.45pt;width:11.02%;">
  <p align="right" style="margin:0in .2in .0001pt 0in;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">9.2%</font></p>
  </td>
  <td width="1%" height="17" valign="bottom" style="height:13.05pt;padding:0in 1.45pt 0in 1.45pt;width:1.6%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="11%" height="17" valign="bottom" style="height:13.05pt;padding:0in 1.45pt 0in 1.45pt;width:11.0%;">
  <p align="right" style="margin:0in .2in .0001pt 0in;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">11</font></p>
  </td>
  <td width="1%" height="17" valign="bottom" style="height:13.05pt;padding:0in 1.45pt 0in 1.45pt;width:1.5%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="5%" height="17" valign="bottom" style="height:13.05pt;padding:0in 1.45pt 0in 1.45pt;width:5.96%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">696</font></p>
  </td>
  <td width="1%" height="17" valign="bottom" style="height:13.05pt;padding:0in 1.45pt 0in 1.45pt;width:1.84%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="1%" height="17" valign="top" style="height:13.05pt;padding:0in 1.45pt 0in 1.45pt;width:1.72%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="9%" height="17" valign="bottom" style="height:13.05pt;padding:0in 1.45pt 0in 1.45pt;width:9.0%;">
  <p align="right" style="margin:0in .2in .0001pt 0in;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">216</font></p>
  </td>
  <td width="1%" height="17" valign="top" style="height:13.05pt;padding:0in 1.45pt 0in 1.45pt;width:1.62%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="8%" height="17" valign="bottom" style="height:13.05pt;padding:0in 1.45pt 0in 1.45pt;width:8.2%;">
  <p align="right" style="margin:0in .2in .0001pt 0in;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">370</font></p>
  </td>
  <td width="1%" height="17" valign="bottom" style="height:13.05pt;padding:0in 1.45pt 0in 1.45pt;width:1.96%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="11%" height="17" valign="bottom" style="height:13.05pt;padding:0in 1.45pt 0in 1.45pt;width:11.4%;">
  <p align="right" style="margin:0in .2in .0001pt 0in;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">$40.41</font></p>
  </td>
 </tr>
 <tr height="16" style="height:11.8pt;">
  <td width="21%" height="16" valign="bottom" bgcolor="#CCFFFF" style="background:#CCFFFF;height:11.8pt;padding:0in 1.45pt 0in 1.45pt;width:21.08%;">
  <p style="margin:0in 0in .0001pt;page-break-after:avoid;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">School</font></p>
  </td>
  <td width="0%" height="16" valign="bottom" bgcolor="#CCFFFF" style="background:#CCFFFF;height:11.8pt;padding:0in 1.45pt 0in 1.45pt;width:.72%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="10%" height="16" valign="bottom" bgcolor="#CCFFFF" style="background:#CCFFFF;border:none;border-bottom:solid windowtext 1.0pt;height:11.8pt;padding:0in 1.45pt 0in 1.45pt;width:10.34%;">
  <p align="right" style="margin:0in .1in .0001pt 0in;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">9,270</font></p>
  </td>
  <td width="1%" height="16" valign="bottom" bgcolor="#CCFFFF" style="background:#CCFFFF;height:11.8pt;padding:0in 1.45pt 0in 1.45pt;width:1.04%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="11%" height="16" valign="bottom" bgcolor="#CCFFFF" style="background:#CCFFFF;border:none;border-bottom:solid windowtext 1.0pt;height:11.8pt;padding:0in 1.45pt 0in 1.45pt;width:11.02%;">
  <p align="right" style="margin:0in .2in .0001pt 0in;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">1.7%</font></p>
  </td>
  <td width="1%" height="16" valign="bottom" bgcolor="#CCFFFF" style="background:#CCFFFF;height:11.8pt;padding:0in 1.45pt 0in 1.45pt;width:1.6%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="11%" height="16" valign="bottom" bgcolor="#CCFFFF" style="background:#CCFFFF;border:none;border-bottom:solid windowtext 1.0pt;height:11.8pt;padding:0in 1.45pt 0in 1.45pt;width:11.0%;">
  <p align="right" style="margin:0in .2in .0001pt 0in;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">1</font></p>
  </td>
  <td width="1%" height="16" valign="bottom" bgcolor="#CCFFFF" style="background:#CCFFFF;height:11.8pt;padding:0in 1.45pt 0in 1.45pt;width:1.5%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="5%" height="16" valign="bottom" bgcolor="#CCFFFF" style="background:#CCFFFF;border:none;border-bottom:solid windowtext 1.0pt;height:11.8pt;padding:0in 1.45pt 0in 1.45pt;width:5.96%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">N/A</font></p>
  </td>
  <td width="1%" height="16" valign="bottom" bgcolor="#CCFFFF" style="background:#CCFFFF;border:none;border-bottom:solid windowtext 1.0pt;height:11.8pt;padding:0in 1.45pt 0in 1.45pt;width:1.84%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="1%" height="16" valign="top" bgcolor="#CCFFFF" style="background:#CCFFFF;height:11.8pt;padding:0in 1.45pt 0in 1.45pt;width:1.72%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="9%" height="16" valign="bottom" bgcolor="#CCFFFF" style="background:#CCFFFF;border:none;border-bottom:solid windowtext 1.0pt;height:11.8pt;padding:0in 1.45pt 0in 1.45pt;width:9.0%;">
  <p align="right" style="margin:0in .2in .0001pt 0in;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">N/A</font></p>
  </td>
  <td width="1%" height="16" valign="top" bgcolor="#CCFFFF" style="background:#CCFFFF;height:11.8pt;padding:0in 1.45pt 0in 1.45pt;width:1.62%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="8%" height="16" valign="bottom" bgcolor="#CCFFFF" style="background:#CCFFFF;border:none;border-bottom:solid windowtext 1.0pt;height:11.8pt;padding:0in 1.45pt 0in 1.45pt;width:8.2%;">
  <p align="right" style="margin:0in .2in .0001pt 0in;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">N/A</font></p>
  </td>
  <td width="1%" height="16" valign="bottom" bgcolor="#CCFFFF" style="background:#CCFFFF;height:11.8pt;padding:0in 1.45pt 0in 1.45pt;width:1.96%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="11%" height="16" valign="bottom" bgcolor="#CCFFFF" style="background:#CCFFFF;height:11.8pt;padding:0in 1.45pt 0in 1.45pt;width:11.4%;">
  <p align="right" style="margin:0in .2in .0001pt 0in;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">N/A</font></p>
  </td>
 </tr>
 <tr height="16" style="height:11.8pt;">
  <td width="21%" height="16" valign="top" style="height:11.8pt;padding:0in 1.45pt 0in 1.45pt;width:21.08%;">
  <p style="margin:0in 0in .0001pt;page-break-after:avoid;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Totals</font></p>
  </td>
  <td width="0%" height="16" valign="bottom" style="height:11.8pt;padding:0in 1.45pt 0in 1.45pt;width:.72%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="10%" height="16" valign="bottom" style="border:none;border-bottom:double windowtext 2.25pt;height:11.8pt;padding:0in 1.45pt 0in 1.45pt;width:10.34%;">
  <p align="right" style="margin:0in .1in .0001pt 0in;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">$560,254</font></p>
  </td>
  <td width="1%" height="16" valign="bottom" style="height:11.8pt;padding:0in 1.45pt 0in 1.45pt;width:1.04%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="11%" height="16" valign="bottom" style="border:none;border-bottom:double windowtext 2.25pt;height:11.8pt;padding:0in 1.45pt 0in 1.45pt;width:11.02%;">
  <p align="right" style="margin:0in .2in .0001pt 0in;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">100.0%</font></p>
  </td>
  <td width="1%" height="16" valign="bottom" style="height:11.8pt;padding:0in 1.45pt 0in 1.45pt;width:1.6%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="11%" height="16" valign="bottom" style="border:none;border-bottom:double windowtext 2.25pt;height:11.8pt;padding:0in 1.45pt 0in 1.45pt;width:11.0%;">
  <p align="right" style="margin:0in .2in .0001pt 0in;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">156</font></p>
  </td>
  <td width="1%" height="16" valign="bottom" style="height:11.8pt;padding:0in 1.45pt 0in 1.45pt;width:1.5%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="5%" height="16" valign="bottom" style="border:none;border-bottom:double windowtext 2.25pt;height:11.8pt;padding:0in 1.45pt 0in 1.45pt;width:5.96%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">7,604</font></p>
  </td>
  <td width="1%" height="16" valign="bottom" style="border:none;border-bottom:double windowtext 2.25pt;height:11.8pt;padding:0in 1.45pt 0in 1.45pt;width:1.84%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="1%" height="16" valign="top" style="height:11.8pt;padding:0in 1.45pt 0in 1.45pt;width:1.72%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="9%" height="16" valign="bottom" style="border:none;border-bottom:double windowtext 2.25pt;height:11.8pt;padding:0in 1.45pt 0in 1.45pt;width:9.0%;">
  <p align="right" style="margin:0in .2in .0001pt 0in;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">3,916</font></p>
  </td>
  <td width="1%" height="16" valign="top" style="height:11.8pt;padding:0in 1.45pt 0in 1.45pt;width:1.62%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="8%" height="16" valign="bottom" style="border:none;border-bottom:double windowtext 2.25pt;height:11.8pt;padding:0in 1.45pt 0in 1.45pt;width:8.2%;">
  <p align="right" style="margin:0in .2in .0001pt 0in;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">370</font></p>
  </td>
  <td width="1%" height="16" valign="bottom" style="height:11.8pt;padding:0in 1.45pt 0in 1.45pt;width:1.96%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="11%" height="16" valign="bottom" style="height:11.8pt;padding:0in 1.45pt 0in 1.45pt;width:11.4%;">
  <p align="right" style="margin:0in .2in .0001pt 0in;text-align:right;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
 </tr>
</table>

</div>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<div style="margin:0in 0in .0001pt .25in;text-indent:-.25in;"><hr size="1" width="15%" noshade color="black" align="left"></div>

<table border="0" cellspacing="0" cellpadding="0" width="100%" style="border-collapse:collapse;width:100.0%;">
 <tr>
  <td width="3%" valign="top" style="padding:0in 0in 0in 0in;width:3.34%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:8.0pt;">(1)</font></p>
  </td>
  <td width="96%" valign="top" style="padding:0in 0in 0in 0in;width:96.66%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:8.0pt;">We have investments in 23 states leased to 26
  different operators.</font></p>
  </td>
 </tr>
 <tr>
  <td width="3%" valign="top" style="padding:0in 0in 0in 0in;width:3.34%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:8.0pt;">(2)</font></p>
  </td>
  <td width="96%" valign="top" style="padding:0in 0in 0in 0in;width:96.66%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:8.0pt;">Other properties consist
  of independent living properties and properties providing any combination of
  skilled nursing, assisted living and/or independent living services.</font></p>
  </td>
 </tr>
</table>

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:11.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:11.0pt;">Owned properties
are leased pursuant to non-cancelable operating leases generally with an
initial term of 10 to 15 years.&#160; Each
lease is a triple net lease which requires the lessee to pay all taxes,
insurance, maintenance and repairs, capital and non-capital expenditures and
other costs necessary in the operations of the facilities.&#160; Many of the leases contain renewal options
and two contain limited period options that permit the operators to purchase
the properties.&#160; The leases provide for
fixed minimum base rent during the initial and renewal periods.&#160; The majority of our leases contain provisions
for specified annual increases over the rents of the prior year that are
generally computed in one of four ways depending on specific provisions of each
lease:</font></p>

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:11.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt 1.5in;text-indent:-1.0in;"><font size="2" face="Times New Roman" style="font-size:11.0pt;">(i)</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:11.0pt;">a specified percentage increase over the
prior year&#146;s rent, generally between 2.0% and 3.0%;</font></p>

<p style="margin:0in 0in .0001pt 58.5pt;text-indent:-22.5pt;"><font size="2" face="Times New Roman" style="font-size:11.0pt;">(ii)</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:11.0pt;">a calculation based on the Consumer Price
Index;</font></p>

<p style="margin:0in 0in .0001pt 58.5pt;text-indent:-22.5pt;"><font size="2" face="Times New Roman" style="font-size:11.0pt;">(iii)</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:11.0pt;">as
a percentage of facility net patient revenues in excess of base amounts; or</font></p>

<p style="margin:0in 0in .0001pt 58.5pt;text-indent:-22.5pt;"><font size="2" face="Times New Roman" style="font-size:11.0pt;">(iv)</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:11.0pt;">specific dollar increases.</font></p>

<p style="margin:0in 0in .0001pt 58.5pt;text-indent:-22.5pt;"><font size="2" face="Times New Roman" style="font-size:11.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:11.0pt;">During the three months
ended June&nbsp;30, 2010, we acquired two properties in Virginia, a 90-bed
skilled nursing property and a property with 137 skilled nursing beds, 47
assisted living units, and 46 independent living units, for $22,000,000 and
incurred and expensed $7,000 in transaction costs.&#160; These properties were leased to a third party
operator under a 12-year master lease with two 10-year renewal options.</font></p>

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:11.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:11.0pt;">Additionally,
during the six months ended June&nbsp;30, 2010, we acquired a 120-bed skilled
nursing property in Florida for $9,000,000 and incurred and expensed $51,000 in
transaction costs.&#160; This property was
leased to a third party operator under a 12-year lease with two 10-year renewal
options.&#160; Also during the six months
ended June&nbsp;30, 2010, we purchased a 166-bed skilled nursing property in
Texas for $7,850,000 and incurred and expensed $30,000 in transaction
costs.&#160; This property was leased to a
third party operator under a 10-year lease with two five-year renewal options.&#160; We paid this operator, who previously operated
the property under a lease with the seller, $125,000 as a lease
inducement.&#160; The lease inducement is
amortized as a yield adjustment over the life of the lease.</font></p>

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:11.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:11.0pt;">Also during the
six months ended June&nbsp;30, 2010, we invested $890,000 at an average yield
of 10.0%, under agreements to expand and renovate eight existing properties
operated by six different operators.&#160; We
also invested $1,016,000 in capital improvements to existing properties under
various lease agreements whose rental rates already reflected this investment.</font></p>

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:11.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:11.0pt;">Subsequent to June&nbsp;30,
2010, a lessee notified us of its intent to exercise its option to purchase a
195-bed skilled nursing property located in Virginia on November&nbsp;1,
2010.&#160; The carrying value of this
property as of June&nbsp;30, 2010 was $4,398,000 and the annual revenue from
this property is $471,000. At this time, we anticipate an immaterial net gain
from this sale.</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">8<a name="PB_8_223811_141"></a></font></p>

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<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><b><font size="3" face="Times New Roman" style="font-size:11.5pt;font-weight:bold;">LTC PROPERTIES,&nbsp;INC.</font></b></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><b><font size="3" face="Times New Roman" style="font-size:11.5pt;font-weight:bold;">NOTES TO CONSOLIDATED FINANCIAL STATEMENTS </font></b><b><font size="1" style="font-size:9.0pt;font-weight:bold;">CONTINUED</font></b></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><b><font size="3" face="Times New Roman" style="font-size:11.5pt;font-weight:bold;">(Unaudited)</font></b></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:11.0pt;">During the six
months ended June&nbsp;30, 2009, we invested $1,264,000 at an average yield of
10.7%, under agreements to expand and renovate five existing properties
operated by four different operators.&#160; We
also invested $467,000 in capital improvements to existing properties under
various lease agreements whose rental rates already reflected this investment.</font></p>

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:11.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:11.0pt;">Any reference to the
number of properties, number of schools, number of units, number of beds, and
yield on investments in real estate are unaudited and outside the scope of our
independent registered public accounting firm&#146;s review of our consolidated
financial statements in accordance with the standards of the Public Company
Accounting Oversight Board.</font></p>

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:11.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt .25in;text-indent:-.25in;"><b><font size="2" face="Times New Roman" style="font-size:11.0pt;font-weight:bold;">3.</font></b><b><font size="1" style="font-size:3.0pt;font-weight:bold;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font></b><b><font size="2" style="font-size:11.0pt;font-weight:bold;">Notes Receivable</font></b></p>

<p style="margin:0in 0in .0001pt .25in;text-indent:-.25in;"><font size="2" face="Times New Roman" style="font-size:11.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:11.0pt;">During the six months
ended June&nbsp;30, 2010, we received $1,006,000 in principal payments under
various loans and line of credit agreements with certain operators.&#160; At June&nbsp;30, 2010, we had six such loans
outstanding with a carrying value of $1,720,000 at a weighted average interest
rate of 12.0%.&#160; At December&nbsp;31,
2009, we had seven such loans outstanding with a carrying value of $2,689,000
at a weighted average interest rate of 11.52%.</font></p>

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:11.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:11.0pt;">Subsequent to June&nbsp;30,
2010, we funded an additional $100,000 under a $250,000 loan commitment we
provided to a lessee of three assisted living properties. The total funded
under this commitment is $250,000. The loan has an interest rate of 9% and
matures on November&nbsp;30, 2011.</font></p>

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:11.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt .25in;text-indent:-.25in;"><b><font size="2" face="Times New Roman" style="font-size:11.0pt;font-weight:bold;">4.</font></b><b><font size="1" style="font-size:3.0pt;font-weight:bold;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font></b><b><font size="2" style="font-size:11.0pt;font-weight:bold;">Marketable Securities</font></b></p>

<p style="margin:0in 0in .0001pt .25in;text-indent:-.25in;"><font size="2" face="Times New Roman" style="font-size:11.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:11.0pt;">At June&nbsp;30,
2010 and December&nbsp;31, 2009, we had an investment in $6,500,000 face value
of Skilled Healthcare Group,&nbsp;Inc. (or SHG) Senior Subordinated Notes with
a face rate of 11.0% and an effective yield of 11.1%.&#160; Interest on the notes is payable
semi-annually in arrears and the notes mature on January&nbsp;15, 2014.&#160; Subsequent to June&nbsp;30, 2010, we received
the semi-annual interest on the notes as scheduled.&#160; One of our board members is the chief
executive officer of SHG. See <i>Note 9. Transactions with
Related Party</i> for further discussion.</font></p>

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:11.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:11.0pt;">On July&nbsp;7,
2010, SHG reported that a Humboldt County, California, jury returned a verdict
against SHG related to a complaint filed on May&nbsp;4, 2006.&#160; The jury awarded the plaintiffs $613,000,000
in statutory damages and $58,000,000 in restitutionary damages.&#160; The plaintiffs alleged that certain
California-based facilities operated by SHG&#146;s wholly owned operating companies
failed to provide an adequate number of qualified personnel to care for their
residents and misrepresented the quality of care provided in their facilities.&#160; SHG has stated publicly that it believes the
company is appropriately staffed and its caregivers work diligently every day
to provide the care and services its residents need and deserve.&#160; SHG also announced that it has agreed with
the plaintiffs to enter into mediation.&#160;
As part of the agreement, the plaintiffs will not move to collect on
their verdict against SHG, and, in return, SHG will not transfer or impair any
assets.</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">9<a name="PB_9_224036_7608"></a></font></p>

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<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><b><font size="3" face="Times New Roman" style="font-size:11.5pt;font-weight:bold;">LTC PROPERTIES,&nbsp;INC.</font></b></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><b><font size="3" face="Times New Roman" style="font-size:11.5pt;font-weight:bold;">NOTES TO CONSOLIDATED FINANCIAL STATEMENTS </font></b><b><font size="1" style="font-size:9.0pt;font-weight:bold;">CONTINUED</font></b></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><b><font size="3" face="Times New Roman" style="font-size:11.5pt;font-weight:bold;">(Unaudited)</font></b></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:11.0pt;">Accounting
Standards Codification No.&nbsp;320,&nbsp;<i>Investments&#151;Debt
and Equity Securities </i>(or ASC 320), requires an entity to assess
whether it intends to sell, or it is more likely than not that it will be
required to sell, a debt security in an unrealized loss position before
recovery of its amortized cost basis. If either of these criteria is met, the
entire difference between fair value and amortized cost is recognized as
impairment through earnings. For securities that do not meet the aforementioned
criteria, the amount of impairment is split into two components as follows: 1)
other-than-temporary impairment (or OTTI) related to other factors such as SHG&#146;s
ability to make scheduled interest or principal payments on the debt
securities, which is recognized in other comprehensive income and 2) OTTI
related to credit loss, which must be recognized in the income statement. The
credit loss is determined as the difference between the present value of the
cash flows expected to be collected and the amortized cost basis.</font></p>

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:11.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:11.0pt;">As a result of the
verdict against SHG, the fair value of our SHG Senior Subordinated Notes has
decreased below amortized cost basis which we believe to be temporary based on
the facts available to us.&#160; We do not
intend to sell the debt securities and currently we have concluded that it is
not &#147;more likely than not&#148; that we will be required to sell these securities
before the anticipated recovery of the remaining amortized cost basis.&#160; We will continue to evaluate our debt
securities for OTTI as the mediation between SHG and the plaintiffs progresses.</font></p>

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:11.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt .25in;text-indent:-.25in;"><b><font size="2" face="Times New Roman" style="font-size:11.0pt;font-weight:bold;">5.</font></b><b><font size="1" style="font-size:3.0pt;font-weight:bold;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font></b><b><font size="2" style="font-size:11.0pt;font-weight:bold;">Debt Obligations</font></b></p>

<p style="margin:0in 0in .0001pt .25in;text-indent:-.25in;"><font size="2" face="Times New Roman" style="font-size:11.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><i><font size="2" face="Times New Roman" style="font-size:11.0pt;font-style:italic;">Bank
Borrowings. </font></i><font size="2" style="font-size:11.0pt;">During
the six months ended June&nbsp;30, 2010, we added a new lender with a
$30,000,000 commitment to our Unsecured Credit Agreement, dated July&nbsp;17,
2008.&#160; This additional commitment
provides a total availability of $110,000,000 under our Unsecured Credit
Agreement with the opportunity to increase the credit amount up to a total of
$120,000,000.&#160; The Unsecured Credit
Agreement provides a revolving line of credit with a final maturity date of July&nbsp;17,
2011.&#160; The pricing under the Unsecured
Credit Agreement is either Prime Rate plus 0.50% or LIBOR plus 1.50% depending
on our borrowing election.&#160; At the time
of borrowing, we may elect the 1, 2, 3 or 6 month LIBOR rate.&#160; Under financial covenants contained in the
Unsecured Credit Agreement which are measured quarterly we are required to
maintain, among other things:</font></p>

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:11.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt 58.3pt;text-indent:-22.3pt;"><font size="2" face="Times New Roman" style="font-size:11.0pt;">(i)</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:11.0pt;">a ratio, of total
indebtedness to total asset value, not greater than 0.5 to 1.0;</font></p>

<p style="margin:0in 0in .0001pt 58.3pt;text-indent:-22.3pt;"><font size="2" face="Times New Roman" style="font-size:11.0pt;">(ii)</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:11.0pt;">a ratio not
greater than 0.35 to 1.0 of secured debt to total asset value;</font></p>

<p style="margin:0in 0in .0001pt 58.3pt;text-indent:-22.3pt;"><font size="2" face="Times New Roman" style="font-size:11.0pt;">(iii)</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:11.0pt;">a ratio not
less than 2.5 to 1.0 of EBITDA as calculated in the Unsecured Credit Agreement
to interest expense; and</font></p>

<p style="margin:0in 0in .0001pt 58.5pt;text-indent:-22.5pt;"><font size="2" face="Times New Roman" style="font-size:11.0pt;">(iv)</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:11.0pt;">a ratio of not
less than 1.50 to 1.0 of EBITDA as calculated in the Unsecured Credit Agreement
to fixed charges.</font></p>

<p style="margin:0in 0in .0001pt 58.5pt;text-indent:-22.5pt;"><font size="2" face="Times New Roman" style="font-size:11.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:11.0pt;">During the six
months ended June&nbsp;30, 2010 we borrowed $37,500,000 and repaid $10,000,000
under our Unsecured Credit Agreement.&#160; At
June&nbsp;30, 2010, we had $41,000,000 outstanding at an interest rate of LIBOR
plus 1.50% under our Unsecured Credit Agreement with $69,000,000 available for
borrowing.&#160; At December&nbsp;31, 2009, we
had $13,500,000 outstanding at an interest rate of LIBOR plus 1.50% under the
Unsecured Credit Agreement.&#160; Also, at
June&nbsp;30, 2010 and December&nbsp;31, 2009, we were in compliance with all
covenants.</font></p>

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:11.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:11.0pt;">Subsequent to June&nbsp;30,
2010, we repaid $41,000,000 under our Unsecured Credit Agreement using the
proceeds from the sale of the senior unsecured notes discussed below.&#160; After this repayment we have no outstanding
balance under our Unsecured Credit Agreement and $110,000,000 available for
borrowing.</font></p>

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:11.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><i><font size="2" face="Times New Roman" style="font-size:11.0pt;font-style:italic;">Senior
Unsecured Notes.</font></i><font size="2" style="font-size:11.0pt;">&#160; Subsequent to June&nbsp;30, 2010, we
completed the sale to affiliates and managed accounts of Prudential Investment
Management,&nbsp;Inc. (individually and collectively &#147;Prudential&#148;) of
$25,000,000 aggregate principal amount of 5.26% senior unsecured term notes due
July&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">10<a name="PB_10_224125_8146"></a></font></p>

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<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><b><font size="3" face="Times New Roman" style="font-size:11.5pt;font-weight:bold;">LTC PROPERTIES,&nbsp;INC.</font></b></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><b><font size="3" face="Times New Roman" style="font-size:11.5pt;font-weight:bold;">NOTES TO CONSOLIDATED FINANCIAL STATEMENTS </font></b><b><font size="1" style="font-size:9.0pt;font-weight:bold;">CONTINUED</font></b></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><b><font size="3" face="Times New Roman" style="font-size:11.5pt;font-weight:bold;">(Unaudited)</font></b></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:11.0pt;">14, 2015 and $25,000,000
aggregate principal amount of 5.74% senior unsecured term notes due January&nbsp;14,
2019.&#160; Also, we entered into an
uncommitted private shelf agreement with Prudential which provides for the
possible issuance of up to an additional $50,000,000 of senior unsecured
fixed-rate term notes during the three-year issuance period.</font></p>

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><i><font size="2" face="Times New Roman" style="font-size:11.0pt;font-style:italic;">&nbsp;</font></i></p>

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><i><font size="2" face="Times New Roman" style="font-size:11.0pt;font-style:italic;">Mortgage
Loans Payable.</font></i><font size="2" style="font-size:11.0pt;">&#160; During the three months ended June&nbsp;30,
2010, we paid off a $7,626,000 mortgage loan secured by an assisted living
property located in California.&#160; The
retired debt had an interest rate of 8.69%.&#160;
Also, during the six months ended June&nbsp;30, 2010, we paid $59,000 in
regularly scheduled principal payments. At June&nbsp;30, 2010, we have no
mortgage loans outstanding.&#160; At December&nbsp;31,
2009, we had one mortgage loan outstanding with a carrying value of $7,685,000
at a fixed interest rate of 8.69%.</font></p>

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:11.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:11.0pt;">During the three
months ended June&nbsp;30, 2009, we paid off two mortgage loans in the amount of
$15,834,000 secured by 10 assisted living properties located in various
states.&#160; The retired debt bore a weighted
average interest rate of 8.81%.&#160; During
the six months ended June&nbsp;30, 2009, we paid $358,000 in regularly
scheduled principal payments.</font></p>

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:11.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><i><font size="2" face="Times New Roman" style="font-size:11.0pt;font-style:italic;">Bonds
Payable</font></i><font size="2" style="font-size:11.0pt;">.&#160; At June&nbsp;30, 2010 and December&nbsp;31,
2009, we had outstanding principal of $3,730,000 and $4,225,000 respectively,
on multifamily tax-exempt revenue bonds that are secured by five assisted
living properties in Washington.&#160; These
bonds bear interest at a variable rate that is reset weekly and mature during
2015.&#160; For the six months ended
June&nbsp;30, 2010, the weighted average interest rate, including letter of
credit fees, on the outstanding bonds was 2.1%.&#160;
During the six months ended June&nbsp;30, 2010 and 2009, we paid
$495,000 and $465,000 in regularly scheduled principal payments.&#160; As of June&nbsp;30, 2010 and December&nbsp;31,
2009, the aggregate carrying value of real estate properties securing our bonds
payable was $7,311,000 and $7,443,000, respectively.</font></p>

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:11.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt .25in;text-indent:-.25in;"><b><font size="2" face="Times New Roman" style="font-size:11.0pt;font-weight:bold;">6.</font></b><b><font size="1" style="font-size:3.0pt;font-weight:bold;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font></b><b><font size="2" style="font-size:11.0pt;font-weight:bold;">Equity</font></b></p>

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:11.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:11.0pt;">Equity is allocated
between controlling and non-controlling interests as follows <i>(in thousands)</i>:</font></p>

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:11.0pt;">&nbsp;</font></p>

<table border="0" cellspacing="0" cellpadding="0" width="96%" style="border-collapse:collapse;margin-left:.25in;width:96.66%;">
 <tr>
  <td width="50%" valign="bottom" style="padding:0in 0in 0in 0in;width:50.88%;">
  <p style="margin:0in 0in .0001pt 10.0pt;text-indent:-10.0pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.54%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="13%" colspan="2" valign="bottom" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0in 0in 0in 0in;width:13.46%;">
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">LTC<br>
  Properties,&nbsp;Inc.<br>
  Stockholders&#146;<br>
  Equity</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.58%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="13%" colspan="2" valign="bottom" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0in 0in 0in 0in;width:13.46%;">
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Non-controlling<br>
  Interest</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.58%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="13%" colspan="2" valign="bottom" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0in 0in 0in 0in;width:13.48%;">
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Total<br>
  Equity</font></p>
  </td>
  <td width="1%" valign="bottom" style="padding:0in 0in 0in 0in;width:1.02%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="50%" valign="bottom" style="padding:0in 0in 0in 0in;width:50.88%;">
  <p style="margin:0in 0in .0001pt 10.0pt;text-indent:-10.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Balance at December&nbsp;31, 2009</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.54%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="10%" valign="bottom" style="border:none;padding:0in 0in 0in 0in;width:10.54%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">$452,332</font></p>
  </td>
  <td width="2%" valign="bottom" style="border:none;border-top:solid windowtext 1.0pt;padding:0in 0in 0in 0in;width:2.92%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.58%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="9%" valign="bottom" style="border:none;padding:0in 0in 0in 0in;width:9.58%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">$1,981</font></p>
  </td>
  <td width="3%" valign="bottom" style="border:none;border-top:solid windowtext 1.0pt;padding:0in 0in 0in 0in;width:3.88%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.58%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="10%" valign="bottom" style="border:none;padding:0in 0in 0in 0in;width:10.48%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">$454,313</font></p>
  </td>
  <td width="3%" valign="bottom" style="border:none;border-top:solid windowtext 1.0pt;padding:0in 0in 0in 0in;width:3.0%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="1%" valign="bottom" style="padding:0in 0in 0in 0in;width:1.02%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="50%" valign="bottom" style="padding:0in 0in 0in 0in;width:50.88%;">
  <p style="margin:0in 0in .0001pt 10.0pt;text-indent:-10.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Net income</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.54%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="10%" valign="bottom" style="padding:0in 0in 0in 0in;width:10.54%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">22,104</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.92%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.58%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="9%" valign="bottom" style="padding:0in 0in 0in 0in;width:9.58%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">96</font></p>
  </td>
  <td width="3%" valign="bottom" style="padding:0in 0in 0in 0in;width:3.88%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.58%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="10%" valign="bottom" style="padding:0in 0in 0in 0in;width:10.48%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">22,200</font></p>
  </td>
  <td width="3%" valign="bottom" style="padding:0in 0in 0in 0in;width:3.0%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="1%" valign="bottom" style="padding:0in 0in 0in 0in;width:1.02%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="50%" valign="bottom" style="padding:0in 0in 0in 0in;width:50.88%;">
  <p style="margin:0in 0in .0001pt 10.0pt;text-indent:-10.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Common stock offering</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.54%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="10%" valign="bottom" style="padding:0in 0in 0in 0in;width:10.54%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">9,654</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.92%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.58%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="9%" valign="bottom" style="padding:0in 0in 0in 0in;width:9.58%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#151;</font></p>
  </td>
  <td width="3%" valign="bottom" style="padding:0in 0in 0in 0in;width:3.88%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.58%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="10%" valign="bottom" style="padding:0in 0in 0in 0in;width:10.48%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">9,654</font></p>
  </td>
  <td width="3%" valign="bottom" style="padding:0in 0in 0in 0in;width:3.0%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="1%" valign="bottom" style="padding:0in 0in 0in 0in;width:1.02%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="50%" valign="bottom" style="padding:0in 0in 0in 0in;width:50.88%;">
  <p style="margin:0in 0in .0001pt 10.0pt;text-indent:-10.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Vested stock options and restricted stock</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.54%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="10%" valign="bottom" style="padding:0in 0in 0in 0in;width:10.54%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">721</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.92%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.58%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="9%" valign="bottom" style="padding:0in 0in 0in 0in;width:9.58%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#151;</font></p>
  </td>
  <td width="3%" valign="bottom" style="padding:0in 0in 0in 0in;width:3.88%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.58%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="10%" valign="bottom" style="padding:0in 0in 0in 0in;width:10.48%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">721</font></p>
  </td>
  <td width="3%" valign="bottom" style="padding:0in 0in 0in 0in;width:3.0%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="1%" valign="bottom" style="padding:0in 0in 0in 0in;width:1.02%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="50%" valign="bottom" style="padding:0in 0in 0in 0in;width:50.88%;">
  <p style="margin:0in 0in .0001pt 10.0pt;text-indent:-10.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Reclassification adjustment</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.54%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="10%" valign="bottom" style="padding:0in 0in 0in 0in;width:10.54%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(56</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.92%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">)</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.58%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="9%" valign="bottom" style="padding:0in 0in 0in 0in;width:9.58%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#151;</font></p>
  </td>
  <td width="3%" valign="bottom" style="padding:0in 0in 0in 0in;width:3.88%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.58%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="10%" valign="bottom" style="padding:0in 0in 0in 0in;width:10.48%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(56</font></p>
  </td>
  <td width="3%" valign="bottom" style="padding:0in 0in 0in 0in;width:3.0%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">)</font></p>
  </td>
  <td width="1%" valign="bottom" style="padding:0in 0in 0in 0in;width:1.02%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="50%" valign="bottom" style="padding:0in 0in 0in 0in;width:50.88%;">
  <p style="margin:0in 0in .0001pt 10.0pt;text-indent:-10.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Non-controlling interest preferred return</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.54%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="10%" valign="bottom" style="padding:0in 0in 0in 0in;width:10.54%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#151;</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.92%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.58%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="9%" valign="bottom" style="padding:0in 0in 0in 0in;width:9.58%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(115</font></p>
  </td>
  <td width="3%" valign="bottom" style="padding:0in 0in 0in 0in;width:3.88%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">)</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.58%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="10%" valign="bottom" style="padding:0in 0in 0in 0in;width:10.48%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(115</font></p>
  </td>
  <td width="3%" valign="bottom" style="padding:0in 0in 0in 0in;width:3.0%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">)</font></p>
  </td>
  <td width="1%" valign="bottom" style="padding:0in 0in 0in 0in;width:1.02%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="50%" valign="bottom" style="padding:0in 0in 0in 0in;width:50.88%;">
  <p style="margin:0in 0in .0001pt 10.0pt;text-indent:-10.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Preferred stock dividends</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.54%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="10%" valign="bottom" style="padding:0in 0in 0in 0in;width:10.54%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(7,570</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.92%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">)</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.58%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="9%" valign="bottom" style="padding:0in 0in 0in 0in;width:9.58%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#151;</font></p>
  </td>
  <td width="3%" valign="bottom" style="padding:0in 0in 0in 0in;width:3.88%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.58%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="10%" valign="bottom" style="padding:0in 0in 0in 0in;width:10.48%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(7,570</font></p>
  </td>
  <td width="3%" valign="bottom" style="padding:0in 0in 0in 0in;width:3.0%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">)</font></p>
  </td>
  <td width="1%" valign="bottom" style="padding:0in 0in 0in 0in;width:1.02%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="50%" valign="bottom" style="padding:0in 0in 0in 0in;width:50.88%;">
  <p style="margin:0in 0in .0001pt 10.0pt;text-indent:-10.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Common stock dividends</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.54%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="10%" valign="bottom" style="padding:0in 0in 0in 0in;width:10.54%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(18,416</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.92%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">)</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.58%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="9%" valign="bottom" style="padding:0in 0in 0in 0in;width:9.58%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#151;</font></p>
  </td>
  <td width="3%" valign="bottom" style="padding:0in 0in 0in 0in;width:3.88%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.58%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="10%" valign="bottom" style="padding:0in 0in 0in 0in;width:10.48%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(18,416</font></p>
  </td>
  <td width="3%" valign="bottom" style="padding:0in 0in 0in 0in;width:3.0%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">)</font></p>
  </td>
  <td width="1%" valign="bottom" style="padding:0in 0in 0in 0in;width:1.02%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="50%" valign="bottom" style="padding:0in 0in 0in 0in;width:50.88%;">
  <p style="margin:0in 0in .0001pt 10.0pt;text-indent:-10.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Stock option exercises</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.54%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="10%" valign="bottom" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0in 0in 0in 0in;width:10.54%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">159</font></p>
  </td>
  <td width="2%" valign="bottom" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0in 0in 0in 0in;width:2.92%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.58%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="9%" valign="bottom" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0in 0in 0in 0in;width:9.58%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#151;</font></p>
  </td>
  <td width="3%" valign="bottom" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0in 0in 0in 0in;width:3.88%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.58%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="10%" valign="bottom" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0in 0in 0in 0in;width:10.48%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">159</font></p>
  </td>
  <td width="3%" valign="bottom" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0in 0in 0in 0in;width:3.0%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="1%" valign="bottom" style="padding:0in 0in 0in 0in;width:1.02%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="50%" valign="bottom" style="padding:0in 0in 0in 0in;width:50.88%;">
  <p style="margin:0in 0in .0001pt 10.0pt;text-indent:-10.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Balance at June&nbsp;30, 2010</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.54%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="10%" valign="bottom" style="border:none;border-bottom:double windowtext 2.25pt;padding:0in 0in 0in 0in;width:10.54%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">$458,928</font></p>
  </td>
  <td width="2%" valign="bottom" style="border:none;border-bottom:double windowtext 2.25pt;padding:0in 0in 0in 0in;width:2.92%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.58%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="9%" valign="bottom" style="border:none;border-bottom:double windowtext 2.25pt;padding:0in 0in 0in 0in;width:9.58%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">$1,962</font></p>
  </td>
  <td width="3%" valign="bottom" style="border:none;border-bottom:double windowtext 2.25pt;padding:0in 0in 0in 0in;width:3.88%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.58%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="10%" valign="bottom" style="border:none;border-bottom:double windowtext 2.25pt;padding:0in 0in 0in 0in;width:10.48%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">$460,890</font></p>
  </td>
  <td width="3%" valign="bottom" style="border:none;border-bottom:double windowtext 2.25pt;padding:0in 0in 0in 0in;width:3.0%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="1%" valign="bottom" style="padding:0in 0in 0in 0in;width:1.02%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
 </tr>
</table>

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:11.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><i><font size="2" face="Times New Roman" style="font-size:11.0pt;font-style:italic;">Preferred
Stock.</font></i><font size="2" style="font-size:11.0pt;">&#160; At June&nbsp;30, 2010, we had 2,000,000 shares
of our 8.5% Series&nbsp;C Cumulative Convertible Preferred Stock (or Series&nbsp;C
preferred stock) outstanding.&#160; Our Series&nbsp;C
preferred stock is convertible into 2,000,000 shares of our common stock at
$19.25 per share.&#160; Total shares reserved
for issuance of common stock related to the conversion of Series&nbsp;C
preferred stock were 2,000,000 shares at June&nbsp;30, 2010.</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">11<a name="PB_11_224220_7091"></a></font></p>

<div style="margin:0in 0in .0001pt;"><hr size="3" width="100%" noshade color="#010101" align="left"></div>

</div>
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<br clear="all" style="page-break-before:always;">
<div style="font-family:Times New Roman;">

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><b><font size="3" face="Times New Roman" style="font-size:11.5pt;font-weight:bold;">LTC PROPERTIES, INC.</font></b></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><b><font size="3" face="Times New Roman" style="font-size:11.5pt;font-weight:bold;">NOTES TO CONSOLIDATED FINANCIAL STATEMENTS </font></b><b><font size="1" style="font-size:9.0pt;font-weight:bold;">CONTINUED</font></b></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><b><font size="3" face="Times New Roman" style="font-size:11.5pt;font-weight:bold;">(Unaudited)</font></b></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:11.0pt;">At June&nbsp;30, 2010, we
had 37,816 shares of our 8.5% Series E Cumulative Convertible Preferred Stock
(Series E preferred stock) outstanding.&#160;
During the six months ended June&nbsp;30, 2010, no holders of our Series
E preferred stock elected to convert into shares of our common stock.&#160; During the six months ended June&nbsp;30,
2009 holders of 900 shares of our Series E preferred stock elected to convert
such shares into 1,800 shares of our common stock at the Series E preferred
stock conversion rate of $12.50 per share.&#160;
Total shares reserved for issuance of common stock related to the
conversion of Series E preferred stock were 75,632 at June&nbsp;30, 2010.</font></p>

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:11.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:11.0pt;">At June&nbsp;30, 2010, we
had 5,894,216 shares of our 8.0% Series F Cumulative Preferred Stock (or Series
F Preferred Stock) outstanding.&#160; During
the six months ended June&nbsp;30, 2009, we invested $2,000,000 to repurchase a
total of 109,484 shares of our Series F Preferred Stock at an average cost of
$18.27 per share, including commissions.&#160;
The Series F preferred stock has a liquidation value of $25.00 per
share.&#160; As required by the accounting
guidance regarding the effect on the calculation of earnings per share for the
redemption or induced conversion of preferred stock, the discounted purchase
price on these shares, which is the liquidation value over the fair value,
netted with the original issuance costs was added to net income in calculating
net income allocable to common stockholders.</font></p>

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:11.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><i><font size="2" face="Times New Roman" style="font-size:11.0pt;font-style:italic;">Common
Stock.</font></i><font size="2" style="font-size:11.0pt;">&#160; During the six months ended June&nbsp;30,
2010, a total of 6,666 common stock options were exercised at a total option
value of $159,000 and a total market value on the date of exercise of $182,000.
No common stock options were exercised during the six months ended
June&nbsp;30, 2009.</font></p>

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:11.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:11.0pt;">Our Board of Directors
authorized a share repurchase program enabling us to repurchase up to 5,000,000
shares of our equity securities, including common and preferred stock.&#160; During the six months ended June&nbsp;30,
2010, we did not purchase shares of our common or preferred stock.&#160; During the six months ended June&nbsp;30,
2009, we purchased and retired 900 shares of common stock for an aggregate
purchase price of $16,000 or $17.33 per share, including commission.&#160; The shares were purchased on the open market
under this Board authorization.&#160; At
June&nbsp;30, 2010, we continue to have an open Board authorization to purchase
an additional 3,360,237 shares in total of common and/or preferred stock.</font></p>

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:11.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:11.0pt;">On August 5, 2009, we
entered into an equity distribution agreement with KeyBanc Capital Markets,
Inc. (or KeyBanc) to issue and sell, from time to time, up to $75,000,000 in
aggregate offering price of our common shares.&#160;
Sales of common shares are made by means of ordinary brokers&#146;
transactions at market prices, in block transactions, or as otherwise agreed
between us and KeyBanc.&#160; During the six
months ended June&nbsp;30, 2010, we sold 365,000 shares of common stock at a
weighted average price, including fees, of $26.45 per share, resulting in net proceeds
of $9,654,000 after $249,000 of fees. At June 30, 2010 we had $64,314,000
available under this equity distribution agreement.</font></p>

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:11.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:11.0pt;">On June 9, 2010, we filed
a Form S-3 &#147;shelf&#148; registration statement which became effective June 16, 2010,
to replace our prior shelf registration statement.&#160; Our current shelf registration statement
provides us with the capacity to offer up to $400,000,000 in common stock,
preferred stock, warrants, debt, depositary shares, or units.&#160; We may from time to time raise capital under
our current shelf registration in amounts, at prices, and on terms to be
announced when and if the securities are offered. The specifics of any future
offerings, along with the use of proceeds of any securities offered, will be
described in detail in a prospectus supplement, or other offering materials, at
the time of the offering.</font></p>

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:11.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><i><font size="2" face="Times New Roman" style="font-size:11.0pt;font-style:italic;">Non-controlling
Interests</font></i><font size="2" style="font-size:11.0pt;">. We
have one limited partnership and have reserved 112,588 shares of our common
stock under this partnership agreement.&nbsp; Since we exercise control, we
consolidate the limited partnership and we carry the non-controlling interests
at cost.&nbsp; The limited partnership agreement allows the limited partners to
convert, on a one-for-one basis, their limited partnership units into shares of
common stock or the cash equivalent, at our option.&#160; &nbsp; If we issued shares of our common
stock upon limited partners&#146; election to exercise their conversion rights, the
carrying amount of the partnership would </font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">12<a name="PB_12_224717_455"></a></font></p>

<div style="margin:0in 0in .0001pt;"><hr size="3" width="100%" noshade color="#010101" align="left"></div>

</div>
<!-- SEQ.=1,FOLIO='12',FILE='C:\JMS\jraja\10-12718-1\task4210777\12718-1-ba-07.htm',USER='105337',CD='Jul 31 07:49 2010' -->


<br clear="all" style="page-break-before:always;">


<div style="font-family:Times New Roman;">

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><b><font size="3" face="Times New Roman" style="font-size:11.5pt;font-weight:bold;">LTC PROPERTIES, INC.</font></b></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><b><font size="3" face="Times New Roman" style="font-size:11.5pt;font-weight:bold;">NOTES TO CONSOLIDATED FINANCIAL STATEMENTS </font></b><b><font size="1" style="font-size:9.0pt;font-weight:bold;">CONTINUED</font></b></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><b><font size="3" face="Times New Roman" style="font-size:11.5pt;font-weight:bold;">(Unaudited)</font></b></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:11.0pt;">be reclassified to
stockholders&#146; equity.&nbsp; At June&nbsp;30, 2010, the carrying value and
market value of the partnership conversion rights was $1,962,000 and
$2,780,000, respectively.</font></p>

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><i><font size="2" face="Times New Roman" style="font-size:11.0pt;font-style:italic;">&nbsp;</font></i></p>

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><i><font size="2" face="Times New Roman" style="font-size:11.0pt;font-style:italic;">Distributions.</font></i><font size="2" style="font-size:11.0pt;">&#160;
We declared and paid the following cash dividends <i>(in
thousands)</i>:</font></p>

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:11.0pt;">&nbsp;</font></p>

<table border="0" cellspacing="0" cellpadding="0" width="93%" style="border-collapse:collapse;margin-left:.25in;width:93.32%;">
 <tr>
  <td width="32%" valign="bottom" style="padding:0in 0in 0in 0in;width:32.72%;">
  <p style="margin:0in 0in .0001pt 10.0pt;text-indent:-10.0pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.68%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="30%" colspan="5" valign="bottom" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0in 0in 0in 0in;width:30.54%;">
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Six Months Ended June&nbsp;30, 2010</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.66%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="30%" colspan="5" valign="bottom" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0in 0in 0in 0in;width:30.5%;">
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Six Months Ended June&nbsp;30, 2009</font></p>
  </td>
  <td width="0%" valign="bottom" style="padding:0in 0in 0in 0in;width:.9%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="32%" valign="bottom" style="padding:0in 0in 0in 0in;width:32.72%;">
  <p style="margin:0in 0in .0001pt 10.0pt;text-indent:-10.0pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.68%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="13%" colspan="2" valign="bottom" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0in 0in 0in 0in;width:13.94%;">
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Declared</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.68%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="13%" colspan="2" valign="bottom" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0in 0in 0in 0in;width:13.92%;">
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Paid</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.66%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="13%" colspan="2" valign="bottom" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0in 0in 0in 0in;width:13.92%;">
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Declared</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.66%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="13%" colspan="2" valign="bottom" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0in 0in 0in 0in;width:13.92%;">
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Paid</font></p>
  </td>
  <td width="0%" valign="bottom" style="padding:0in 0in 0in 0in;width:.9%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="32%" valign="bottom" style="padding:0in 0in 0in 0in;width:32.72%;">
  <p style="margin:0in 0in .0001pt 10.0pt;text-indent:-10.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Preferred Stock</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.68%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="10%" valign="bottom" style="border:none;padding:0in 0in 0in 0in;width:10.14%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="3%" valign="bottom" style="border:none;border-top:solid windowtext 1.0pt;padding:0in 0in 0in 0in;width:3.8%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.68%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="10%" valign="bottom" style="border:none;padding:0in 0in 0in 0in;width:10.48%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="3%" valign="bottom" style="border:none;border-top:solid windowtext 1.0pt;padding:0in 0in 0in 0in;width:3.44%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.66%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="10%" valign="bottom" style="border:none;padding:0in 0in 0in 0in;width:10.42%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="3%" valign="bottom" style="border:none;border-top:solid windowtext 1.0pt;padding:0in 0in 0in 0in;width:3.5%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.66%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="10%" valign="bottom" style="border:none;padding:0in 0in 0in 0in;width:10.54%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="3%" valign="bottom" style="border:none;border-top:solid windowtext 1.0pt;padding:0in 0in 0in 0in;width:3.38%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="0%" valign="bottom" style="padding:0in 0in 0in 0in;width:.9%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="32%" valign="bottom" style="padding:0in 0in 0in 0in;width:32.72%;">
  <p style="margin:0in 0in .0001pt 30.0pt;text-indent:-10.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Series C</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.68%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="10%" valign="bottom" style="padding:0in 0in 0in 0in;width:10.14%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">$&nbsp;1,636</font></p>
  </td>
  <td width="3%" valign="bottom" style="padding:0in 0in 0in 0in;width:3.8%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.68%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="10%" valign="bottom" style="padding:0in 0in 0in 0in;width:10.48%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">$&nbsp;1,636</font></p>
  </td>
  <td width="3%" valign="bottom" style="padding:0in 0in 0in 0in;width:3.44%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.66%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="10%" valign="bottom" style="padding:0in 0in 0in 0in;width:10.42%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">$&nbsp;1,636</font></p>
  </td>
  <td width="3%" valign="bottom" style="padding:0in 0in 0in 0in;width:3.5%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.66%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="10%" valign="bottom" style="padding:0in 0in 0in 0in;width:10.54%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">$&nbsp;1,636</font></p>
  </td>
  <td width="3%" valign="bottom" style="padding:0in 0in 0in 0in;width:3.38%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="0%" valign="bottom" style="padding:0in 0in 0in 0in;width:.9%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="32%" valign="bottom" style="padding:0in 0in 0in 0in;width:32.72%;">
  <p style="margin:0in 0in .0001pt 30.0pt;text-indent:-10.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Series E</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.68%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="10%" valign="bottom" style="padding:0in 0in 0in 0in;width:10.14%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">40</font></p>
  </td>
  <td width="3%" valign="bottom" style="padding:0in 0in 0in 0in;width:3.8%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.68%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="10%" valign="bottom" style="padding:0in 0in 0in 0in;width:10.48%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">40</font></p>
  </td>
  <td width="3%" valign="bottom" style="padding:0in 0in 0in 0in;width:3.44%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.66%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="10%" valign="bottom" style="padding:0in 0in 0in 0in;width:10.42%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">41</font></p>
  </td>
  <td width="3%" valign="bottom" style="padding:0in 0in 0in 0in;width:3.5%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.66%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="10%" valign="bottom" style="padding:0in 0in 0in 0in;width:10.54%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">41</font></p>
  </td>
  <td width="3%" valign="bottom" style="padding:0in 0in 0in 0in;width:3.38%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="0%" valign="bottom" style="padding:0in 0in 0in 0in;width:.9%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="32%" valign="bottom" style="padding:0in 0in 0in 0in;width:32.72%;">
  <p style="margin:0in 0in .0001pt 30.0pt;text-indent:-10.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Series F</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.68%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="10%" valign="bottom" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0in 0in 0in 0in;width:10.14%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">5,894</font></p>
  </td>
  <td width="3%" valign="bottom" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0in 0in 0in 0in;width:3.8%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.68%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="10%" valign="bottom" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0in 0in 0in 0in;width:10.48%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">5,894</font></p>
  </td>
  <td width="3%" valign="bottom" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0in 0in 0in 0in;width:3.44%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.66%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="10%" valign="bottom" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0in 0in 0in 0in;width:10.42%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">5,894</font></p>
  </td>
  <td width="3%" valign="bottom" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0in 0in 0in 0in;width:3.5%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.66%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="10%" valign="bottom" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0in 0in 0in 0in;width:10.54%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">5,949</font></p>
  </td>
  <td width="3%" valign="bottom" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0in 0in 0in 0in;width:3.38%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="0%" valign="bottom" style="padding:0in 0in 0in 0in;width:.9%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="32%" valign="bottom" style="padding:0in 0in 0in 0in;width:32.72%;">
  <p style="margin:0in 0in .0001pt 10.0pt;text-indent:-10.0pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.68%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="10%" valign="bottom" style="border:none;padding:0in 0in 0in 0in;width:10.14%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">7,570</font></p>
  </td>
  <td width="3%" valign="bottom" style="border:none;padding:0in 0in 0in 0in;width:3.8%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.68%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="10%" valign="bottom" style="border:none;padding:0in 0in 0in 0in;width:10.48%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">7,570</font></p>
  </td>
  <td width="3%" valign="bottom" style="border:none;padding:0in 0in 0in 0in;width:3.44%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.66%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="10%" valign="bottom" style="border:none;padding:0in 0in 0in 0in;width:10.42%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">7,571</font></p>
  </td>
  <td width="3%" valign="bottom" style="border:none;padding:0in 0in 0in 0in;width:3.5%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.66%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="10%" valign="bottom" style="border:none;padding:0in 0in 0in 0in;width:10.54%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">7,626</font></p>
  </td>
  <td width="3%" valign="bottom" style="border:none;padding:0in 0in 0in 0in;width:3.38%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="0%" valign="bottom" style="padding:0in 0in 0in 0in;width:.9%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="32%" valign="bottom" style="padding:0in 0in 0in 0in;width:32.72%;">
  <p style="margin:0in 0in .0001pt 10.0pt;text-indent:-10.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.68%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="10%" valign="bottom" style="padding:0in 0in 0in 0in;width:10.14%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="3%" valign="bottom" style="padding:0in 0in 0in 0in;width:3.8%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.68%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="10%" valign="bottom" style="padding:0in 0in 0in 0in;width:10.48%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="3%" valign="bottom" style="padding:0in 0in 0in 0in;width:3.44%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.66%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="10%" valign="bottom" style="padding:0in 0in 0in 0in;width:10.42%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="3%" valign="bottom" style="padding:0in 0in 0in 0in;width:3.5%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.66%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="10%" valign="bottom" style="padding:0in 0in 0in 0in;width:10.54%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="3%" valign="bottom" style="padding:0in 0in 0in 0in;width:3.38%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="0%" valign="bottom" style="padding:0in 0in 0in 0in;width:.9%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="32%" valign="bottom" style="padding:0in 0in 0in 0in;width:32.72%;">
  <p style="margin:0in 0in .0001pt 10.0pt;text-indent:-10.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Common Stock </font><font size="1" style="font-size:6.5pt;position:relative;top:-3.0pt;">(1)</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.68%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="10%" valign="bottom" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0in 0in 0in 0in;width:10.14%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">18,416</font></p>
  </td>
  <td width="3%" valign="bottom" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0in 0in 0in 0in;width:3.8%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.68%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="10%" valign="bottom" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0in 0in 0in 0in;width:10.48%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">18,416</font></p>
  </td>
  <td width="3%" valign="bottom" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0in 0in 0in 0in;width:3.44%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.66%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="10%" valign="bottom" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0in 0in 0in 0in;width:10.42%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">18,067</font></p>
  </td>
  <td width="3%" valign="bottom" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0in 0in 0in 0in;width:3.5%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.66%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="10%" valign="bottom" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0in 0in 0in 0in;width:10.54%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">18,067</font></p>
  </td>
  <td width="3%" valign="bottom" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0in 0in 0in 0in;width:3.38%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="0%" valign="bottom" style="padding:0in 0in 0in 0in;width:.9%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="32%" valign="bottom" style="padding:0in 0in 0in 0in;width:32.72%;">
  <p style="margin:0in 0in .0001pt 10.0pt;text-indent:-10.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.68%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="10%" valign="bottom" style="border:none;padding:0in 0in 0in 0in;width:10.14%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="3%" valign="bottom" style="border:none;padding:0in 0in 0in 0in;width:3.8%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.68%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="10%" valign="bottom" style="border:none;padding:0in 0in 0in 0in;width:10.48%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="3%" valign="bottom" style="border:none;padding:0in 0in 0in 0in;width:3.44%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.66%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="10%" valign="bottom" style="border:none;padding:0in 0in 0in 0in;width:10.42%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="3%" valign="bottom" style="border:none;padding:0in 0in 0in 0in;width:3.5%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.66%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="10%" valign="bottom" style="border:none;padding:0in 0in 0in 0in;width:10.54%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="3%" valign="bottom" style="border:none;padding:0in 0in 0in 0in;width:3.38%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="0%" valign="bottom" style="padding:0in 0in 0in 0in;width:.9%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="32%" valign="bottom" style="padding:0in 0in 0in 0in;width:32.72%;">
  <p style="margin:0in 0in .0001pt 10.0pt;text-indent:-10.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Total </font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.68%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="10%" valign="bottom" style="border:none;border-bottom:double windowtext 2.25pt;padding:0in 0in 0in 0in;width:10.14%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">$25,986</font></p>
  </td>
  <td width="3%" valign="bottom" style="border:none;border-bottom:double windowtext 2.25pt;padding:0in 0in 0in 0in;width:3.8%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.68%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="10%" valign="bottom" style="border:none;border-bottom:double windowtext 2.25pt;padding:0in 0in 0in 0in;width:10.48%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">$25,986</font></p>
  </td>
  <td width="3%" valign="bottom" style="border:none;border-bottom:double windowtext 2.25pt;padding:0in 0in 0in 0in;width:3.44%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.66%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="10%" valign="bottom" style="border:none;border-bottom:double windowtext 2.25pt;padding:0in 0in 0in 0in;width:10.42%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">$25,638</font></p>
  </td>
  <td width="3%" valign="bottom" style="border:none;border-bottom:double windowtext 2.25pt;padding:0in 0in 0in 0in;width:3.5%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.66%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="10%" valign="bottom" style="border:none;border-bottom:double windowtext 2.25pt;padding:0in 0in 0in 0in;width:10.54%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">$25,693</font></p>
  </td>
  <td width="3%" valign="bottom" style="border:none;border-bottom:double windowtext 2.25pt;padding:0in 0in 0in 0in;width:3.38%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="0%" valign="bottom" style="padding:0in 0in 0in 0in;width:.9%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
 </tr>
</table>

<p style="margin:0in 0in .0001pt .5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<div style="margin:0in 0in .0001pt .5in;"><hr size="1" width="25%" noshade color="black" align="left"></div>

<p style="margin:0in 0in .0001pt .75in;text-indent:-.25in;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">(1)&#160;&#160; Represents $0.13 per share per month for the
six months ended June&nbsp;30, 2010 and 2009.</font></p>

<p style="margin:0in 0in .0001pt .75in;text-indent:-.25in;"><font size="2" face="Times New Roman" style="font-size:11.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:11.0pt;">In July 2010, we
declared a monthly cash dividend of $0.13 per common share per month for the
months of July, August and September 2010, payable on July 30, August 31 and
September 30, 2010, respectively, to stockholders of record on July 22, August
23 and September 22, 2010, respectively.</font></p>

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:11.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><i><font size="2" face="Times New Roman" style="font-size:11.0pt;font-style:italic;">Other
Equity.</font></i><font size="2" style="font-size:11.0pt;">&#160; Other equity consists of accumulated
comprehensive income of $334,000 and $390,000 at June&nbsp;30, 2010 and December
31, 2009, respectively.&#160; This balance
represents the net unrealized holding gains on available-for-sale REMIC
Certificates recorded in 2005 when we repurchased the loans in the underlying
loan pool.&#160; This amount is being
amortized to increase interest income over the remaining life of the loans that
we repurchased from the REMIC Pool.</font></p>

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:11.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:11.0pt;">The following
table represents our consolidated comprehensive income <i>(in
thousands)</i>:</font></p>

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<table border="0" cellspacing="0" cellpadding="0" width="73%" style="border-collapse:collapse;margin-left:1.0in;width:73.34%;">
 <tr>
  <td width="33%" valign="bottom" style="padding:0in 0in 0in 0in;width:33.5%;">
  <p style="margin:0in 0in .0001pt 10.0pt;text-indent:-10.0pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="3%" valign="bottom" style="padding:0in 0in 0in 0in;width:3.38%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="30%" colspan="5" valign="bottom" style="padding:0in 0in 0in 0in;width:30.48%;">
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Three Months Ended</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.5%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="30%" colspan="5" valign="bottom" style="padding:0in 0in 0in 0in;width:30.14%;">
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Six Months Ended</font></p>
  </td>
 </tr>
 <tr>
  <td width="33%" valign="bottom" style="padding:0in 0in 0in 0in;width:33.5%;">
  <p style="margin:0in 0in .0001pt 10.0pt;text-indent:-10.0pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="3%" valign="bottom" style="padding:0in 0in 0in 0in;width:3.38%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="30%" colspan="5" valign="bottom" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0in 0in 0in 0in;width:30.48%;">
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">June&nbsp;30,</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.5%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="30%" colspan="5" valign="bottom" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0in 0in 0in 0in;width:30.14%;">
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">June&nbsp;30,</font></p>
  </td>
 </tr>
 <tr>
  <td width="33%" valign="bottom" style="padding:0in 0in 0in 0in;width:33.5%;">
  <p style="margin:0in 0in .0001pt 10.0pt;text-indent:-10.0pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="3%" valign="bottom" style="padding:0in 0in 0in 0in;width:3.38%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="13%" colspan="2" valign="bottom" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0in 0in 0in 0in;width:13.98%;">
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">2010</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.5%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="14%" colspan="2" valign="bottom" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0in 0in 0in 0in;width:14.0%;">
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">2009</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.5%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="13%" colspan="2" valign="bottom" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0in 0in 0in 0in;width:13.98%;">
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">2010</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.5%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="13%" colspan="2" valign="bottom" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0in 0in 0in 0in;width:13.66%;">
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">2009</font></p>
  </td>
 </tr>
 <tr>
  <td width="33%" valign="bottom" style="padding:0in 0in 0in 0in;width:33.5%;">
  <p style="margin:0in 0in .0001pt 10.0pt;text-indent:-10.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Comprehensive Income:</font></p>
  </td>
  <td width="3%" valign="bottom" style="padding:0in 0in 0in 0in;width:3.38%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="12%" valign="bottom" style="border:none;padding:0in 0in 0in 0in;width:12.28%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="1%" valign="bottom" style="border:none;border-top:solid windowtext 1.0pt;padding:0in 0in 0in 0in;width:1.7%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.5%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="12%" valign="bottom" style="border:none;padding:0in 0in 0in 0in;width:12.28%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="1%" valign="bottom" style="border:none;border-top:solid windowtext 1.0pt;padding:0in 0in 0in 0in;width:1.72%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.5%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="12%" valign="bottom" style="border:none;padding:0in 0in 0in 0in;width:12.28%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="1%" valign="bottom" style="border:none;border-top:solid windowtext 1.0pt;padding:0in 0in 0in 0in;width:1.7%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.5%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="12%" valign="bottom" style="border:none;padding:0in 0in 0in 0in;width:12.28%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="1%" valign="bottom" style="border:none;border-top:solid windowtext 1.0pt;padding:0in 0in 0in 0in;width:1.38%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="33%" valign="bottom" style="padding:0in 0in 0in 0in;width:33.5%;">
  <p style="margin:0in 0in .0001pt 20.0pt;text-indent:-10.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Net income</font></p>
  </td>
  <td width="3%" valign="bottom" style="padding:0in 0in 0in 0in;width:3.38%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="12%" valign="bottom" style="padding:0in 0in 0in 0in;width:12.28%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">$11,630</font></p>
  </td>
  <td width="1%" valign="bottom" style="padding:0in 0in 0in 0in;width:1.7%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.5%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="12%" valign="bottom" style="padding:0in 0in 0in 0in;width:12.28%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">$10,740</font></p>
  </td>
  <td width="1%" valign="bottom" style="padding:0in 0in 0in 0in;width:1.72%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.5%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="12%" valign="bottom" style="padding:0in 0in 0in 0in;width:12.28%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">$22,200</font></p>
  </td>
  <td width="1%" valign="bottom" style="padding:0in 0in 0in 0in;width:1.7%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.5%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="12%" valign="bottom" style="padding:0in 0in 0in 0in;width:12.28%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">$21,978</font></p>
  </td>
  <td width="1%" valign="bottom" style="padding:0in 0in 0in 0in;width:1.38%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="33%" valign="bottom" style="padding:0in 0in 0in 0in;width:33.5%;">
  <p style="margin:0in 0in .0001pt 20.0pt;text-indent:-10.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Reclassification adjustment</font></p>
  </td>
  <td width="3%" valign="bottom" style="padding:0in 0in 0in 0in;width:3.38%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="12%" valign="bottom" style="padding:0in 0in 0in 0in;width:12.28%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(28</font></p>
  </td>
  <td width="1%" valign="bottom" style="padding:0in 0in 0in 0in;width:1.7%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">)</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.5%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="12%" valign="bottom" style="padding:0in 0in 0in 0in;width:12.28%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(28</font></p>
  </td>
  <td width="1%" valign="bottom" style="padding:0in 0in 0in 0in;width:1.72%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">)</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.5%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="12%" valign="bottom" style="padding:0in 0in 0in 0in;width:12.28%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(56</font></p>
  </td>
  <td width="1%" valign="bottom" style="padding:0in 0in 0in 0in;width:1.7%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">)</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.5%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="12%" valign="bottom" style="padding:0in 0in 0in 0in;width:12.28%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(288</font></p>
  </td>
  <td width="1%" valign="bottom" style="padding:0in 0in 0in 0in;width:1.38%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">)</font></p>
  </td>
 </tr>
 <tr>
  <td width="33%" valign="bottom" style="padding:0in 0in 0in 0in;width:33.5%;">
  <p style="margin:0in 0in .0001pt 10.0pt;text-indent:-10.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="3%" valign="bottom" style="padding:0in 0in 0in 0in;width:3.38%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="12%" valign="bottom" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0in 0in 0in 0in;width:12.28%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="1%" valign="bottom" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0in 0in 0in 0in;width:1.7%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.5%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="12%" valign="bottom" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0in 0in 0in 0in;width:12.28%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="1%" valign="bottom" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0in 0in 0in 0in;width:1.72%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.5%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="12%" valign="bottom" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0in 0in 0in 0in;width:12.28%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="1%" valign="bottom" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0in 0in 0in 0in;width:1.7%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.5%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="12%" valign="bottom" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0in 0in 0in 0in;width:12.28%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="1%" valign="bottom" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0in 0in 0in 0in;width:1.38%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="33%" valign="bottom" style="padding:0in 0in 0in 0in;width:33.5%;">
  <p style="margin:0in 0in .0001pt 10.0pt;text-indent:-10.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Comprehensive income</font></p>
  </td>
  <td width="3%" valign="bottom" style="padding:0in 0in 0in 0in;width:3.38%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="12%" valign="bottom" style="border:none;border-bottom:double windowtext 2.25pt;padding:0in 0in 0in 0in;width:12.28%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">$11,602</font></p>
  </td>
  <td width="1%" valign="bottom" style="border:none;border-bottom:double windowtext 2.25pt;padding:0in 0in 0in 0in;width:1.7%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.5%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="12%" valign="bottom" style="border:none;border-bottom:double windowtext 2.25pt;padding:0in 0in 0in 0in;width:12.28%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">$10,712</font></p>
  </td>
  <td width="1%" valign="bottom" style="border:none;border-bottom:double windowtext 2.25pt;padding:0in 0in 0in 0in;width:1.72%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.5%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="12%" valign="bottom" style="border:none;border-bottom:double windowtext 2.25pt;padding:0in 0in 0in 0in;width:12.28%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">$22,144</font></p>
  </td>
  <td width="1%" valign="bottom" style="border:none;border-bottom:double windowtext 2.25pt;padding:0in 0in 0in 0in;width:1.7%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.5%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="12%" valign="bottom" style="border:none;border-bottom:double windowtext 2.25pt;padding:0in 0in 0in 0in;width:12.28%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">$21,690</font></p>
  </td>
  <td width="1%" valign="bottom" style="border:none;border-bottom:double windowtext 2.25pt;padding:0in 0in 0in 0in;width:1.38%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
 </tr>
</table>

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:11.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:11.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><i><font size="2" face="Times New Roman" style="font-size:11.0pt;font-style:italic;">Stock-Based
Compensation</font></i><font size="2" style="font-size:11.0pt;">.&#160; No stock options were issued during the six
months ended June&nbsp;30, 2010 and 2009.&#160;
At June&nbsp;30, 2010, the total number of stock options that are
scheduled to vest through December 31, 2010, 2011 and 2012 is 5,000, 5,000 and
5,000, respectively.&#160; We have no stock
options outstanding that are scheduled to vest beyond 2012.&#160; Compensation expense relating to the vesting
of stock options for the three and six months ended June&nbsp;30, 2010 were
$28,000 and $67,000, respectively.&#160;
Compensation expense relating to the vesting of stock options for the
three and six months ended June&nbsp;30, 2009 were $35,000 and $70,000,
respectively.&#160; The remaining compensation
expense to be recognized related to the future service period of unvested
outstanding stock options for 2010, 2011 and 2012 is $8,000, $17,000 and
$10,000, respectively.</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">13<a name="PB_13_225432_4141"></a></font></p>

<div style="margin:0in 0in .0001pt;"><hr size="3" width="100%" noshade color="#010101" align="left"></div>

</div>
<!-- SEQ.=1,FOLIO='13',FILE='C:\JMS\jraja\10-12718-1\task4210777\12718-1-ba-07.htm',USER='105337',CD='Jul 31 07:49 2010' -->


<br clear="all" style="page-break-before:always;">


<div style="font-family:Times New Roman;">

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><b><font size="3" face="Times New Roman" style="font-size:11.5pt;font-weight:bold;">LTC PROPERTIES, INC.</font></b></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><b><font size="3" face="Times New Roman" style="font-size:11.5pt;font-weight:bold;">NOTES TO CONSOLIDATED FINANCIAL STATEMENTS </font></b><b><font size="1" style="font-size:9.0pt;font-weight:bold;">CONTINUED</font></b></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><b><font size="3" face="Times New Roman" style="font-size:11.5pt;font-weight:bold;">(Unaudited)</font></b></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:11.0pt;">During the three
months ended June&nbsp;30, 2010, we granted 4,000 shares of restricted common
stock at $25.95 per share and 1,000 shares of restricted common stock at $25.04
per share.&#160; These shares vest ratably
over a three-year period from the grant date.&#160;
During the six months ended June&nbsp;30, 2010, we granted 11,030 shares
of restricted common stock at $26.53 per share. These shares vest ratably over
a three-year period from the grant date.&#160;&#160;
Also, during the six months ended June&nbsp;30, 2010, we granted 99,661
shares of restricted common stock at $26.53 per share. These shares vest
ratably over a five-year period with the first date of vesting beginning in
December 31, 2010.&#160; During the three and
six months ended June&nbsp;30, 2010, we recognized $327,000 and $654,000,
respectively, of compensation expense related to the vesting of restricted
common stock.</font></p>

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:11.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:11.0pt;">During the three
months ended June 30, 2009, we granted 3,000 shares of restricted common stock
at $18.34 per share.&#160; These shares vest
ratably over a three-year period from the grant date.&#160; During the six months ended June&nbsp;30,
2009, we granted 36,988 shares of restricted common stock at $17.06 per
share.&#160; These shares vest ratably over a
three-year period from the grant date.&#160;
During the three and six months ended June&nbsp;30, 2009, we recognized
$316,000 and $595,000, respectively, of compensation expense related to the
vesting of restricted common stock.</font></p>

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:11.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt .25in;text-indent:-.25in;"><b><font size="2" face="Times New Roman" style="font-size:11.0pt;font-weight:bold;">7.</font></b><b><font size="1" style="font-size:3.0pt;font-weight:bold;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font></b><b><font size="2" style="font-size:11.0pt;font-weight:bold;">Commitments and Contingencies</font></b></p>

<p style="margin:0in 0in .0001pt .25in;text-indent:-.25in;"><font size="2" face="Times New Roman" style="font-size:11.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:11.0pt;">The following table
summarizes our capital improvement commitments as of June 30, 2010 <i>(dollar amounts in thousands)</i>:</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:11.0pt;">&nbsp;</font></p>

<table border="0" cellspacing="0" cellpadding="0" width="100%" style="border-collapse:collapse;width:100.0%;">
 <tr>
  <td width="10%" colspan="2" valign="bottom" style="padding:0in 0in 0in 0in;width:10.0%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="4%" valign="bottom" style="padding:0in 0in 0in 0in;width:4.0%;">
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="10%" valign="bottom" style="padding:0in 0in 0in 0in;width:10.0%;">
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.0%;">
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="10%" colspan="2" valign="bottom" style="padding:0in 0in 0in 0in;width:10.0%;">
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">Used</font></p>
  </td>
  <td width="4%" valign="bottom" style="padding:0in 0in 0in 0in;width:4.0%;">
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="10%" colspan="2" valign="bottom" style="padding:0in 0in 0in 0in;width:10.0%;">
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">Open</font></p>
  </td>
  <td width="4%" valign="bottom" style="padding:0in 0in 0in 0in;width:4.02%;">
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="10%" valign="bottom" style="padding:0in 0in 0in 0in;width:10.0%;">
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="5%" valign="bottom" style="padding:0in 0in 0in 0in;width:5.0%;">
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="7%" valign="bottom" style="padding:0in 0in 0in 0in;width:7.5%;">
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.0%;">
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="7%" valign="bottom" style="padding:0in 0in 0in 0in;width:7.5%;">
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.0%;">
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="11%" valign="bottom" style="padding:0in 0in 0in 0in;width:11.0%;">
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="0%" valign="bottom" style="padding:0in 0in 0in 0in;width:.98%;">
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="10%" colspan="2" valign="bottom" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0in 0in 0in 0in;width:10.0%;">
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">Commitment</font></p>
  </td>
  <td width="4%" valign="bottom" style="padding:0in 0in 0in 0in;width:4.0%;">
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="10%" valign="bottom" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0in 0in 0in 0in;width:10.0%;">
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">Expiration<br>
  Date</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.0%;">
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="10%" colspan="2" valign="bottom" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0in 0in 0in 0in;width:10.0%;">
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">Commitment<br>
  at 6/30/10</font></p>
  </td>
  <td width="4%" valign="bottom" style="padding:0in 0in 0in 0in;width:4.0%;">
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="10%" colspan="2" valign="bottom" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0in 0in 0in 0in;width:10.0%;">
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">Commitment<br>
  at 6/30/10</font></p>
  </td>
  <td width="4%" valign="bottom" style="padding:0in 0in 0in 0in;width:4.02%;">
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="10%" valign="bottom" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0in 0in 0in 0in;width:10.0%;">
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">Estimated<br>
  Yield</font></p>
  </td>
  <td width="5%" valign="bottom" style="padding:0in 0in 0in 0in;width:5.0%;">
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="7%" valign="bottom" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0in 0in 0in 0in;width:7.5%;">
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">Property<br>
  Type </font><font size="1" style="font-size:6.0pt;position:relative;top:-2.0pt;">(1)</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.0%;">
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="7%" valign="bottom" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0in 0in 0in 0in;width:7.5%;">
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">Properties</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.0%;">
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="11%" valign="bottom" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0in 0in 0in 0in;width:11.0%;">
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">Major Operator</font></p>
  </td>
  <td width="0%" valign="bottom" style="padding:0in 0in 0in 0in;width:.98%;">
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="8%" valign="bottom" style="border:none;padding:0in 0in 0in 0in;width:8.58%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">$&nbsp;2,500</font></p>
  </td>
  <td width="5%" colspan="2" valign="bottom" style="padding:0in 0in 0in 0in;width:5.42%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="10%" valign="bottom" style="border:none;padding:0in 0in 0in 0in;width:10.0%;">
  <p align="right" style="margin:0in .15in .0001pt 0in;text-align:right;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">9/30/2010</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.0%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="8%" valign="bottom" style="border:none;padding:0in 0in 0in 0in;width:8.58%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">$1,611</font></p>
  </td>
  <td width="5%" colspan="2" valign="bottom" style="padding:0in 0in 0in 0in;width:5.42%;">
  <p style="margin:0in 0in .0001pt .1in;"><font size="1" face="Times New Roman" style="font-size:6.0pt;position:relative;top:-2.0pt;">&nbsp;&nbsp;&nbsp;(10)</font></p>
  </td>
  <td width="8%" valign="bottom" style="border:none;padding:0in 0in 0in 0in;width:8.76%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">$889</font></p>
  </td>
  <td width="5%" colspan="2" valign="bottom" style="padding:0in 0in 0in 0in;width:5.26%;">
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="10%" valign="bottom" style="border:none;padding:0in 0in 0in 0in;width:10.0%;">
  <p align="right" style="margin:0in .15in .0001pt 0in;text-align:right;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">10.00%</font></p>
  </td>
  <td width="5%" valign="bottom" style="padding:0in 0in 0in 0in;width:5.0%;">
  <p style="margin:0in 0in .0001pt .1in;"><font size="1" face="Times New Roman" style="font-size:6.0pt;position:relative;top:-2.0pt;">(2)</font></p>
  </td>
  <td width="7%" valign="bottom" style="border:none;padding:0in 0in 0in 0in;width:7.5%;">
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">OTHER</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.0%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="7%" valign="bottom" style="border:none;padding:0in 0in 0in 0in;width:7.5%;">
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">1</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.0%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="11%" valign="bottom" style="border:none;padding:0in 0in 0in 0in;width:11.0%;">
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">N/A</font></p>
  </td>
  <td width="0%" valign="bottom" style="padding:0in 0in 0in 0in;width:.98%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="8%" valign="bottom" style="padding:0in 0in 0in 0in;width:8.58%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">875</font></p>
  </td>
  <td width="5%" colspan="2" valign="bottom" style="padding:0in 0in 0in 0in;width:5.42%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="10%" valign="bottom" style="padding:0in 0in 0in 0in;width:10.0%;">
  <p align="right" style="margin:0in .15in .0001pt 0in;text-align:right;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">10/7/2010</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.0%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="8%" valign="bottom" style="padding:0in 0in 0in 0in;width:8.58%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">769 </font></p>
  </td>
  <td width="5%" colspan="2" valign="bottom" style="padding:0in 0in 0in 0in;width:5.42%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="8%" valign="bottom" style="padding:0in 0in 0in 0in;width:8.76%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">106</font></p>
  </td>
  <td width="5%" colspan="2" valign="bottom" style="padding:0in 0in 0in 0in;width:5.26%;">
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="10%" valign="bottom" style="padding:0in 0in 0in 0in;width:10.0%;">
  <p align="right" style="margin:0in .15in .0001pt 0in;text-align:right;"><sup><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></sup></p>
  </td>
  <td width="5%" valign="bottom" style="padding:0in 0in 0in 0in;width:5.0%;">
  <p style="margin:0in 0in .0001pt .1in;"><font size="1" face="Times New Roman" style="font-size:6.0pt;position:relative;top:-2.0pt;">(7)</font></p>
  </td>
  <td width="7%" valign="bottom" style="padding:0in 0in 0in 0in;width:7.5%;">
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">ALF</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.0%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="7%" valign="bottom" style="padding:0in 0in 0in 0in;width:7.5%;">
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">1</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.0%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="11%" valign="bottom" style="padding:0in 0in 0in 0in;width:11.0%;">
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">N/A</font></p>
  </td>
  <td width="0%" valign="bottom" style="padding:0in 0in 0in 0in;width:.98%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="8%" valign="bottom" style="padding:0in 0in 0in 0in;width:8.58%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">1,920</font></p>
  </td>
  <td width="5%" colspan="2" valign="bottom" style="padding:0in 0in 0in 0in;width:5.42%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="10%" valign="bottom" style="padding:0in 0in 0in 0in;width:10.0%;">
  <p align="right" style="margin:0in .15in .0001pt 0in;text-align:right;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">12/1/2010</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.0%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="8%" valign="bottom" style="padding:0in 0in 0in 0in;width:8.58%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">967</font></p>
  </td>
  <td width="5%" colspan="2" valign="bottom" style="padding:0in 0in 0in 0in;width:5.42%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="8%" valign="bottom" style="padding:0in 0in 0in 0in;width:8.76%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">953</font></p>
  </td>
  <td width="5%" colspan="2" valign="bottom" style="padding:0in 0in 0in 0in;width:5.26%;">
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="10%" valign="bottom" style="padding:0in 0in 0in 0in;width:10.0%;">
  <p align="right" style="margin:0in .15in .0001pt 0in;text-align:right;"><sup><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></sup></p>
  </td>
  <td width="5%" valign="bottom" style="padding:0in 0in 0in 0in;width:5.0%;">
  <p style="margin:0in 0in .0001pt .1in;"><font size="1" face="Times New Roman" style="font-size:6.0pt;position:relative;top:-2.0pt;">(6)</font></p>
  </td>
  <td width="7%" valign="bottom" style="padding:0in 0in 0in 0in;width:7.5%;">
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">ALF</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.0%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="7%" valign="bottom" style="padding:0in 0in 0in 0in;width:7.5%;">
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">2</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.0%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="11%" valign="bottom" style="padding:0in 0in 0in 0in;width:11.0%;">
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">N/A</font></p>
  </td>
  <td width="0%" valign="bottom" style="padding:0in 0in 0in 0in;width:.98%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="8%" valign="bottom" style="padding:0in 0in 0in 0in;width:8.58%;">
  <p align="right" style="margin:3.0pt 0in .0001pt;text-align:right;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">4,000</font></p>
  </td>
  <td width="5%" colspan="2" valign="bottom" style="padding:0in 0in 0in 0in;width:5.42%;">
  <p style="margin:3.0pt 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="10%" valign="bottom" style="padding:0in 0in 0in 0in;width:10.0%;">
  <p align="right" style="margin:3.0pt .15in .0001pt 0in;text-align:right;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">12/31/2010</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.0%;">
  <p style="margin:3.0pt 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="8%" valign="bottom" style="padding:0in 0in 0in 0in;width:8.58%;">
  <p align="right" style="margin:3.0pt 0in .0001pt;text-align:right;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">123</font></p>
  </td>
  <td width="5%" colspan="2" valign="bottom" style="padding:0in 0in 0in 0in;width:5.42%;">
  <p style="margin:3.0pt 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="8%" valign="bottom" style="padding:0in 0in 0in 0in;width:8.76%;">
  <p align="right" style="margin:3.0pt 0in .0001pt;text-align:right;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">3,877</font></p>
  </td>
  <td width="5%" colspan="2" valign="bottom" style="padding:0in 0in 0in 0in;width:5.26%;">
  <p align="center" style="margin:3.0pt 0in .0001pt;text-align:center;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="10%" valign="bottom" style="padding:0in 0in 0in 0in;width:10.0%;">
  <p align="right" style="margin:3.0pt .15in .0001pt 0in;text-align:right;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">11.00%</font></p>
  </td>
  <td width="5%" valign="bottom" style="padding:0in 0in 0in 0in;width:5.0%;">
  <p style="margin:3.0pt 0in .0001pt .1in;"><font size="1" face="Times New Roman" style="font-size:6.0pt;position:relative;top:-2.0pt;">(2)</font></p>
  </td>
  <td width="7%" valign="bottom" style="padding:0in 0in 0in 0in;width:7.5%;">
  <p align="center" style="margin:3.0pt 0in .0001pt;text-align:center;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">SNF</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.0%;">
  <p style="margin:3.0pt 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="7%" valign="bottom" style="padding:0in 0in 0in 0in;width:7.5%;">
  <p align="center" style="margin:3.0pt 0in .0001pt;text-align:center;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">1</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.0%;">
  <p style="margin:3.0pt 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="11%" valign="bottom" style="padding:0in 0in 0in 0in;width:11.0%;">
  <p align="center" style="margin:3.0pt 0in .0001pt;text-align:center;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">Preferred Care</font></p>
  </td>
  <td width="0%" valign="bottom" style="padding:0in 0in 0in 0in;width:.98%;">
  <p style="margin:3.0pt 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="8%" valign="bottom" style="padding:0in 0in 0in 0in;width:8.58%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">2,000</font></p>
  </td>
  <td width="5%" colspan="2" valign="bottom" style="padding:0in 0in 0in 0in;width:5.42%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="10%" valign="bottom" style="padding:0in 0in 0in 0in;width:10.0%;">
  <p align="right" style="margin:0in .15in .0001pt 0in;text-align:right;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">1/01/2011</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.0%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="8%" valign="bottom" style="padding:0in 0in 0in 0in;width:8.58%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">&#151;</font></p>
  </td>
  <td width="5%" colspan="2" valign="bottom" style="padding:0in 0in 0in 0in;width:5.42%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="8%" valign="bottom" style="padding:0in 0in 0in 0in;width:8.76%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">2,000</font></p>
  </td>
  <td width="5%" colspan="2" valign="bottom" style="padding:0in 0in 0in 0in;width:5.26%;">
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="10%" valign="bottom" style="padding:0in 0in 0in 0in;width:10.0%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><sup><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></sup></p>
  </td>
  <td width="5%" valign="bottom" style="padding:0in 0in 0in 0in;width:5.0%;">
  <p style="margin:0in 0in .0001pt .1in;"><font size="1" face="Times New Roman" style="font-size:6.0pt;position:relative;top:-2.0pt;">(2)(5)</font></p>
  </td>
  <td width="7%" valign="bottom" style="padding:0in 0in 0in 0in;width:7.5%;">
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">SNF</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.0%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="7%" valign="bottom" style="padding:0in 0in 0in 0in;width:7.5%;">
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">1</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.0%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="11%" valign="bottom" style="padding:0in 0in 0in 0in;width:11.0%;">
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">N/A</font></p>
  </td>
  <td width="0%" valign="bottom" style="padding:0in 0in 0in 0in;width:.98%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="8%" valign="bottom" style="padding:0in 0in 0in 0in;width:8.58%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">175</font></p>
  </td>
  <td width="5%" colspan="2" valign="bottom" style="padding:0in 0in 0in 0in;width:5.42%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="10%" valign="bottom" style="padding:0in 0in 0in 0in;width:10.0%;">
  <p align="right" style="margin:0in .15in .0001pt 0in;text-align:right;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">1/31/2011</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.0%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="8%" valign="bottom" style="padding:0in 0in 0in 0in;width:8.58%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">84</font></p>
  </td>
  <td width="5%" colspan="2" valign="bottom" style="padding:0in 0in 0in 0in;width:5.42%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="8%" valign="bottom" style="padding:0in 0in 0in 0in;width:8.76%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">91</font></p>
  </td>
  <td width="5%" colspan="2" valign="bottom" style="padding:0in 0in 0in 0in;width:5.26%;">
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="10%" valign="bottom" style="padding:0in 0in 0in 0in;width:10.0%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><sup><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></sup></p>
  </td>
  <td width="5%" valign="bottom" style="padding:0in 0in 0in 0in;width:5.0%;">
  <p style="margin:0in 0in .0001pt .1in;"><font size="1" face="Times New Roman" style="font-size:6.0pt;position:relative;top:-2.0pt;">(7)</font></p>
  </td>
  <td width="7%" valign="bottom" style="padding:0in 0in 0in 0in;width:7.5%;">
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">SNF</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.0%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="7%" valign="bottom" style="padding:0in 0in 0in 0in;width:7.5%;">
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">1</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.0%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="11%" valign="bottom" style="padding:0in 0in 0in 0in;width:11.0%;">
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">N/A</font></p>
  </td>
  <td width="0%" valign="bottom" style="padding:0in 0in 0in 0in;width:.98%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="8%" valign="bottom" style="padding:0in 0in 0in 0in;width:8.58%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">1,500</font></p>
  </td>
  <td width="5%" colspan="2" valign="bottom" style="padding:0in 0in 0in 0in;width:5.42%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="10%" valign="bottom" style="padding:0in 0in 0in 0in;width:10.0%;">
  <p align="right" style="margin:0in .15in .0001pt 0in;text-align:right;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">5/31/2011</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.0%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="8%" valign="bottom" style="padding:0in 0in 0in 0in;width:8.58%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">35</font></p>
  </td>
  <td width="5%" colspan="2" valign="bottom" style="padding:0in 0in 0in 0in;width:5.42%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="8%" valign="bottom" style="padding:0in 0in 0in 0in;width:8.76%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">1,465</font></p>
  </td>
  <td width="5%" colspan="2" valign="bottom" style="padding:0in 0in 0in 0in;width:5.26%;">
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="10%" valign="bottom" style="padding:0in 0in 0in 0in;width:10.0%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><sup><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></sup></p>
  </td>
  <td width="5%" valign="bottom" style="padding:0in 0in 0in 0in;width:5.0%;">
  <p style="margin:0in 0in .0001pt .1in;"><font size="1" face="Times New Roman" style="font-size:6.0pt;position:relative;top:-2.0pt;">(8)</font></p>
  </td>
  <td width="7%" valign="bottom" style="padding:0in 0in 0in 0in;width:7.5%;">
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">ALF</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.0%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="7%" valign="bottom" style="padding:0in 0in 0in 0in;width:7.5%;">
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">3</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.0%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="11%" valign="bottom" style="padding:0in 0in 0in 0in;width:11.0%;">
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">N/A</font></p>
  </td>
  <td width="0%" valign="bottom" style="padding:0in 0in 0in 0in;width:.98%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="8%" valign="bottom" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0in 0in 0in 0in;width:8.58%;">
  <div style="border:none;border-bottom:solid windowtext 1.0pt;padding:0in 0in 1.0pt 0in;">
  <p align="right" style="border:none;margin:0in 0in .0001pt;padding:0in;text-align:right;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">5,000</font></p>
  </div>
  </td>
  <td width="5%" colspan="2" valign="bottom" style="padding:0in 0in 0.375pt 0in;width:5.42%;">
  <p style="margin:0in 0in .0001pt .1in;"><font size="1" face="Times New Roman" style="font-size:6.0pt;position:relative;top:-2.0pt;">&nbsp;&nbsp;(8)</font></p>
  </td>
  <td width="10%" valign="bottom" style="padding:0in 0in 0in 0in;width:10.0%;">
  <p align="right" style="margin:0in .15in .0001pt 0in;text-align:right;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">12/31/2014</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.0%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="8%" valign="bottom" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0in 0in 0in 0in;width:8.58%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#151;</font></p>
  </td>
  <td width="5%" colspan="2" valign="bottom" style="padding:0in 0in 0in 0in;width:5.42%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="8%" valign="bottom" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0in 0in 0in 0in;width:8.76%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">5,000</font></p>
  </td>
  <td width="5%" colspan="2" valign="bottom" style="padding:0in 0in 0.375pt 0in;width:5.26%;">
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="1" face="Times New Roman" style="font-size:6.0pt;position:relative;top:-2.0pt;">(9)</font></p>
  </td>
  <td width="10%" valign="bottom" style="padding:0in 0in 0in 0in;width:10.0%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><sup><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></sup></p>
  </td>
  <td width="5%" valign="bottom" style="padding:0in 0in 0in 0in;width:5.0%;">
  <p style="margin:0in 0in .0001pt .1in;"><font size="1" face="Times New Roman" style="font-size:6.0pt;position:relative;top:-2.0pt;">(4)</font></p>
  </td>
  <td width="7%" valign="bottom" style="padding:0in 0in 0in 0in;width:7.5%;">
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">ALF</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.0%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="7%" valign="bottom" style="padding:0in 0in 0in 0in;width:7.5%;">
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">37</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.0%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="11%" valign="bottom" style="padding:0in 0in 0in 0in;width:11.0%;">
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">ALC</font></p>
  </td>
  <td width="0%" valign="bottom" style="padding:0in 0in 0in 0in;width:.98%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="8%" valign="bottom" style="border:none;border-bottom:double windowtext 2.25pt;padding:0in 0in 0in 0in;width:8.58%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">$17,970</font></p>
  </td>
  <td width="5%" colspan="2" valign="bottom" style="padding:0in 0in 1.125pt 0in;width:5.42%;">
  <p style="margin:0in 0in .0001pt .1in;"><font size="1" face="Times New Roman" style="font-size:6.0pt;position:relative;top:-2.0pt;">&nbsp;&nbsp;(11)</font></p>
  </td>
  <td width="10%" valign="bottom" style="padding:0in 0in 0in 0in;width:10.0%;">
  <p align="right" style="margin:0in .15in .0001pt 0in;text-align:right;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.0%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="8%" valign="bottom" style="border:none;border-bottom:double windowtext 2.25pt;padding:0in 0in 0in 0in;width:8.58%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">$3,589</font></p>
  </td>
  <td width="5%" colspan="2" valign="bottom" style="padding:0in 0in 0in 0in;width:5.42%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="8%" valign="bottom" style="border:none;border-bottom:double windowtext 2.25pt;padding:0in 0in 0in 0in;width:8.76%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">$14,381</font></p>
  </td>
  <td width="5%" colspan="2" valign="bottom" style="padding:0in 0in 0in 0in;width:5.26%;">
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="10%" valign="bottom" style="padding:0in 0in 0in 0in;width:10.0%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="5%" valign="bottom" style="padding:0in 0in 0in 0in;width:5.0%;">
  <p style="margin:0in 0in .0001pt .1in;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="7%" valign="bottom" style="padding:0in 0in 0in 0in;width:7.5%;">
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.0%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="7%" valign="bottom" style="padding:0in 0in 0in 0in;width:7.5%;">
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.0%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="11%" valign="bottom" style="padding:0in 0in 0in 0in;width:11.0%;">
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="0%" valign="bottom" style="padding:0in 0in 0in 0in;width:.98%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr height="0">
  <td width="64" style="border:none;"></td>
  <td width="11" style="border:none;"></td>
  <td width="30" style="border:none;"></td>
  <td width="75" style="border:none;"></td>
  <td width="15" style="border:none;"></td>
  <td width="64" style="border:none;"></td>
  <td width="11" style="border:none;"></td>
  <td width="30" style="border:none;"></td>
  <td width="66" style="border:none;"></td>
  <td width="9" style="border:none;"></td>
  <td width="30" style="border:none;"></td>
  <td width="75" style="border:none;"></td>
  <td width="37" style="border:none;"></td>
  <td width="56" style="border:none;"></td>
  <td width="15" style="border:none;"></td>
  <td width="56" style="border:none;"></td>
  <td width="15" style="border:none;"></td>
  <td width="82" style="border:none;"></td>
  <td width="7" style="border:none;"></td>
 </tr>
</table>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<div style="margin:0in 0in .0001pt;"><hr size="1" width="15%" noshade color="black" align="left"></div>

<table border="0" cellspacing="0" cellpadding="0" width="100%" style="border-collapse:collapse;width:100.0%;">
 <tr>
  <td width="3%" valign="top" style="padding:0in 0in 0in 0in;width:3.5%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:8.0pt;">(1)</font></p>
  </td>
  <td width="96%" valign="bottom" style="padding:0in 0in 0in 0in;width:96.5%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:8.0pt;">Other properties consist
  of independent living properties and properties providing any combination of
  skilled nursing, assisted living and/or independent living services.</font></p>
  </td>
 </tr>
 <tr>
  <td width="3%" valign="top" style="padding:0in 0in 0in 0in;width:3.5%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:8.0pt;">(2)</font></p>
  </td>
  <td width="96%" valign="bottom" style="padding:0in 0in 0in 0in;width:96.5%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:8.0pt;">Minimum rent will
  increase upon final funding and project completion or in some cases, the
  improvement deadline as defined in each lease agreement.</font></p>
  </td>
 </tr>
 <tr>
  <td width="3%" valign="top" style="padding:0in 0in 0in 0in;width:3.5%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:8.0pt;">(3)</font></p>
  </td>
  <td width="96%" valign="bottom" style="padding:0in 0in 0in 0in;width:96.5%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:8.0pt;">Minimum rent will
  increase on the 1<font style="position:relative;top:-2.0pt;">st</font>&nbsp;of each month by the
  amount advanced in the previous month multiplied by the estimated yield.</font></p>
  </td>
 </tr>
 <tr>
  <td width="3%" valign="top" style="padding:0in 0in 0in 0in;width:3.5%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:8.0pt;">(4)</font></p>
  </td>
  <td width="96%" valign="bottom" style="padding:0in 0in 0in 0in;width:96.5%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:8.0pt;">9.5% plus the positive
  difference, if any, between the average yields on the U.S. Treasury 10-year
  note for the five days prior to funding, minus 420 basis points (expressed as
  a percentage).</font></p>
  </td>
 </tr>
 <tr>
  <td width="3%" valign="top" style="padding:0in 0in 0in 0in;width:3.5%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:8.0pt;">(5)</font></p>
  </td>
  <td width="96%" valign="bottom" style="padding:0in 0in 0in 0in;width:96.5%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:8.0pt;">The higher of one-year
  LIBOR plus 5.3% or 10%.</font></p>
  </td>
 </tr>
 <tr>
  <td width="3%" valign="top" style="padding:0in 0in 0in 0in;width:3.5%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:8.0pt;">(6)</font></p>
  </td>
  <td width="96%" valign="bottom" style="padding:0in 0in 0in 0in;width:96.5%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:8.0pt;">The commitment is
  allocated in three tranches of $750,000, $850,000 and $320,000. The yield for
  the $750,000 tranche is included in the initial lease rate; the yield for the
  $850,000 tranche is 8.5% with minimum rent increases as per footnote (3); the
  yield for the $320,000 tranche is 9.5% with minimum rent increases as per
  footnote (3).</font></p>
  </td>
 </tr>
 <tr>
  <td width="3%" valign="top" style="padding:0in 0in 0in 0in;width:3.5%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:8.0pt;">(7)</font></p>
  </td>
  <td width="96%" valign="bottom" style="padding:0in 0in 0in 0in;width:96.5%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:8.0pt;">The yield is included in
  the initial lease rate.</font></p>
  </td>
 </tr>
 <tr>
  <td width="3%" valign="top" style="padding:0in 0in 0in 0in;width:3.5%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:8.0pt;">(8)</font></p>
  </td>
  <td width="96%" valign="bottom" style="padding:0in 0in 0in 0in;width:96.5%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:8.0pt;">The lease rate in affect
  on the date funded: 7% for March&nbsp;through November&nbsp;2010. Minimum
  rent increase as per footnote (2).</font></p>
  </td>
 </tr>
 <tr>
  <td width="3%" valign="top" style="padding:0in 0in 0in 0in;width:3.5%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:8.0pt;">(9)</font></p>
  </td>
  <td width="96%" valign="bottom" style="padding:0in 0in 0in 0in;width:96.5%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:8.0pt;">$5,000,000 per year for
  the life of the lease.</font></p>
  </td>
 </tr>
 <tr>
  <td width="3%" valign="top" style="padding:0in 0in 0in 0in;width:3.5%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:8.0pt;">(10)</font></p>
  </td>
  <td width="96%" valign="bottom" style="padding:0in 0in 0in 0in;width:96.5%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:8.0pt;">Subsequent to
  June&nbsp;30, 2010, we invested an additional $146,000 in this commitment.</font></p>
  </td>
 </tr>
 <tr>
  <td width="3%" valign="top" style="padding:0in 0in 0in 0in;width:3.5%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:8.0pt;">(11)</font></p>
  </td>
  <td width="96%" valign="bottom" style="padding:0in 0in 0in 0in;width:96.5%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:8.0pt;">Subsequent to June&nbsp;30, 2010, we committed to
  provide a lessee with a $150,000 capital improvement allowance for a property
  with 72 skilled nursing beds and 16 assisted living units that they lease
  from us. The commitment includes a 10% yield and matures on December&nbsp;31,
  2010. Minimum rent increases as per footnote (2)&nbsp;above.</font></p>
  </td>
 </tr>
</table>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">14<a name="PB_14_234749_5926"></a></font></p>

<div style="margin:0in 0in .0001pt;"><hr size="3" width="100%" noshade color="#010101" align="left"></div>

</div>
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<br clear="all" style="page-break-before:always;">


<div style="font-family:Times New Roman;">

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><b><font size="3" face="Times New Roman" style="font-size:11.5pt;font-weight:bold;">LTC PROPERTIES, INC.</font></b></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><b><font size="3" face="Times New Roman" style="font-size:11.5pt;font-weight:bold;">NOTES TO CONSOLIDATED FINANCIAL STATEMENTS </font></b><b><font size="1" style="font-size:9.0pt;font-weight:bold;">CONTINUED</font></b></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><b><font size="3" face="Times New Roman" style="font-size:11.5pt;font-weight:bold;">(Unaudited)</font></b></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:11.0pt;">The following table
summarizes our loan commitments as of June&nbsp;30, 2010 (<i>dollar
amounts in thousands)</i>:</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<table border="0" cellspacing="0" cellpadding="0" width="100%" style="border-collapse:collapse;width:100.0%;">
 <tr>
  <td width="11%" valign="top" style="padding:0in 0in 0in 0in;width:11.82%;">
  <p align="center" style="margin:0in 0in .0001pt 10.0pt;text-align:center;text-indent:-10.0pt;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="1%" valign="top" style="padding:0in 0in 0in 0in;width:1.86%;">
  <p style="margin:0in 0in .0001pt 10.0pt;text-indent:-10.0pt;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="9%" colspan="2" valign="bottom" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0in 0in 0in 0in;width:9.84%;">
  <p align="center" style="margin:0in 0in .0001pt 10.0pt;text-align:center;text-indent:-10.0pt;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">Commitment</font></p>
  </td>
  <td width="1%" valign="bottom" style="padding:0in 0in 0in 0in;width:1.96%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="8%" valign="bottom" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0in 0in 0in 0in;width:8.9%;">
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">Expiration<br>
  Date</font></p>
  </td>
  <td width="1%" valign="bottom" style="padding:0in 0in 0in 0in;width:1.98%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="11%" colspan="2" valign="bottom" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0in 0in 0in 0in;width:11.1%;">
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">Used<br>
  Commitment<br>
  at 6/30/10</font></p>
  </td>
  <td width="1%" valign="bottom" style="padding:0in 0in 0in 0in;width:1.5%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="10%" colspan="2" valign="bottom" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0in 0in 0in 0in;width:10.88%;">
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">Open<br>
  Commitment<br>
  at 6/30/10</font></p>
  </td>
  <td width="1%" valign="bottom" style="padding:0in 0in 0in 0in;width:1.5%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="7%" valign="bottom" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0in 0in 0in 0in;width:7.0%;">
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">Yield</font></p>
  </td>
  <td width="1%" valign="bottom" style="padding:0in 0in 0in 0in;width:1.98%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="7%" valign="bottom" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0in 0in 0in 0in;width:7.0%;">
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">Property<br>
  Type </font><font size="1" style="font-size:6.0pt;position:relative;top:-2.0pt;">(1)</font></p>
  </td>
  <td width="1%" valign="bottom" style="padding:0in 0in 0in 0in;width:1.98%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="8%" valign="bottom" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0in 0in 0in 0in;width:8.88%;">
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">Properties</font></p>
  </td>
  <td width="1%" valign="bottom" style="padding:0in 0in 0in 0in;width:1.98%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="8%" valign="bottom" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0in 0in 0in 0in;width:8.88%;">
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">Major<br>
  Operator</font></p>
  </td>
  <td width="0%" valign="bottom" style="padding:0in 0in 0in 0in;width:.96%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="11%" valign="top" style="padding:0in 0in 0in 0in;width:11.82%;">
  <p align="right" style="margin:0in 0in .0001pt 10.0pt;text-align:right;text-indent:-10.0pt;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">Griffiths</font></p>
  </td>
  <td width="1%" valign="top" style="padding:0in 0in 0in 0in;width:1.86%;">
  <p style="margin:0in 0in .0001pt 10.0pt;text-indent:-10.0pt;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="8%" valign="bottom" style="border:none;padding:0in 0in 0in 0in;width:8.66%;">
  <p align="right" style="margin:0in 0in .0001pt 10.0pt;text-align:right;text-indent:-10.0pt;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">$450</font></p>
  </td>
  <td width="3%" colspan="2" valign="bottom" style="padding:0in 0in 0in 0in;width:3.14%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="8%" valign="bottom" style="border:none;padding:0in 0in 0in 0in;width:8.9%;">
  <p align="right" style="margin:0in 5.75pt .0001pt 0in;text-align:right;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">8/31/2010</font></p>
  </td>
  <td width="1%" valign="bottom" style="padding:0in 0in 0in 0in;width:1.98%;">
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="9%" valign="bottom" style="border:none;padding:0in 0in 0in 0in;width:9.08%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">$250</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.02%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="1%" valign="bottom" style="padding:0in 0in 0in 0in;width:1.5%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="8%" valign="bottom" style="border:none;padding:0in 0in 0in 0in;width:8.88%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">$200</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.0%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="1%" valign="bottom" style="padding:0in 0in 0in 0in;width:1.5%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="7%" valign="bottom" style="border:none;padding:0in 0in 0in 0in;width:7.0%;">
  <p align="right" style="margin:0in .1in .0001pt 0in;text-align:right;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">10.00%</font></p>
  </td>
  <td width="1%" valign="bottom" style="padding:0in 0in 0in 0in;width:1.98%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="7%" valign="bottom" style="border:none;padding:0in 0in 0in 0in;width:7.0%;">
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">SNF</font></p>
  </td>
  <td width="1%" valign="bottom" style="padding:0in 0in 0in 0in;width:1.98%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="8%" valign="bottom" style="border:none;padding:0in 0in 0in 0in;width:8.88%;">
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">4</font></p>
  </td>
  <td width="1%" valign="bottom" style="padding:0in 0in 0in 0in;width:1.98%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="8%" valign="bottom" style="border:none;padding:0in 0in 0in 0in;width:8.88%;">
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">N/A</font></p>
  </td>
  <td width="0%" valign="bottom" style="padding:0in 0in 0in 0in;width:.96%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="11%" valign="top" style="padding:0in 0in 0in 0in;width:11.82%;">
  <p align="right" style="margin:0in 0in .0001pt 10.0pt;text-align:right;text-indent:-10.0pt;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">Brownsville</font></p>
  </td>
  <td width="1%" valign="top" style="padding:0in 0in 0in 0in;width:1.86%;">
  <p style="margin:0in 0in .0001pt 10.0pt;text-indent:-10.0pt;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="8%" valign="bottom" style="padding:0in 0in 0in 0in;width:8.66%;">
  <p align="right" style="margin:0in 0in .0001pt 10.0pt;text-align:right;text-indent:-10.0pt;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">50</font></p>
  </td>
  <td width="3%" colspan="2" valign="bottom" style="padding:0in 0in 0in 0in;width:3.14%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="8%" valign="bottom" style="padding:0in 0in 0in 0in;width:8.9%;">
  <p align="right" style="margin:0in 5.75pt .0001pt 0in;text-align:right;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">3/31/2011</font></p>
  </td>
  <td width="1%" valign="bottom" style="padding:0in 0in 0in 0in;width:1.98%;">
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="9%" valign="bottom" style="padding:0in 0in 0in 0in;width:9.08%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">20</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.02%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="1%" valign="bottom" style="padding:0in 0in 0in 0in;width:1.5%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="8%" valign="bottom" style="padding:0in 0in 0in 0in;width:8.88%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">30</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.0%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="1%" valign="bottom" style="padding:0in 0in 0in 0in;width:1.5%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="7%" valign="bottom" style="padding:0in 0in 0in 0in;width:7.0%;">
  <p align="right" style="margin:0in .1in .0001pt 0in;text-align:right;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">10.00%</font></p>
  </td>
  <td width="1%" valign="bottom" style="padding:0in 0in 0in 0in;width:1.98%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="7%" valign="bottom" style="padding:0in 0in 0in 0in;width:7.0%;">
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">OTHER</font></p>
  </td>
  <td width="1%" valign="bottom" style="padding:0in 0in 0in 0in;width:1.98%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="8%" valign="bottom" style="padding:0in 0in 0in 0in;width:8.88%;">
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">1</font></p>
  </td>
  <td width="1%" valign="bottom" style="padding:0in 0in 0in 0in;width:1.98%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="8%" valign="bottom" style="padding:0in 0in 0in 0in;width:8.88%;">
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">N/A</font></p>
  </td>
  <td width="0%" valign="bottom" style="padding:0in 0in 0in 0in;width:.96%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="11%" valign="top" style="padding:0in 0in 0in 0in;width:11.82%;">
  <p align="right" style="margin:0in 0in .0001pt 10.0pt;text-align:right;text-indent:-10.0pt;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">Sr. Lifestyle</font></p>
  </td>
  <td width="1%" valign="top" style="padding:0in 0in 0in 0in;width:1.86%;">
  <p style="margin:0in 0in .0001pt 10.0pt;text-indent:-10.0pt;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="8%" valign="bottom" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0in 0in 0in 0in;width:8.66%;">
  <p align="right" style="margin:0in 0in .0001pt 10.0pt;text-align:right;text-indent:-10.0pt;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">250</font></p>
  </td>
  <td width="3%" colspan="2" valign="bottom" style="padding:0in 0in 0in 0in;width:3.14%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="8%" valign="bottom" style="padding:0in 0in 0in 0in;width:8.9%;">
  <p align="right" style="margin:0in 5.75pt .0001pt 0in;text-align:right;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">11/30/2011</font></p>
  </td>
  <td width="1%" valign="bottom" style="padding:0in 0in 0in 0in;width:1.98%;">
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="9%" valign="bottom" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0in 0in 0in 0in;width:9.08%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">150</font></p>
  </td>
  <td width="2%" valign="bottom" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0in 0in 0in 0in;width:2.02%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:6.0pt;position:relative;top:-2.0pt;">(1)</font></p>
  </td>
  <td width="1%" valign="bottom" style="padding:0in 0in 0in 0in;width:1.5%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:1.0pt;position:relative;top:-2.0pt;">&nbsp;</font></p>
  </td>
  <td width="8%" valign="bottom" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0in 0in 0in 0in;width:8.88%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">100</font></p>
  </td>
  <td width="2%" valign="bottom" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0in 0in 0in 0in;width:2.0%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:6.0pt;position:relative;top:-2.0pt;">(1)</font></p>
  </td>
  <td width="1%" valign="bottom" style="padding:0in 0in 0in 0in;width:1.5%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:1.0pt;position:relative;top:-2.0pt;">&nbsp;</font></p>
  </td>
  <td width="7%" valign="bottom" style="padding:0in 0in 0in 0in;width:7.0%;">
  <p align="right" style="margin:0in .1in .0001pt 0in;text-align:right;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">9.00%</font></p>
  </td>
  <td width="1%" valign="bottom" style="padding:0in 0in 0in 0in;width:1.98%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="7%" valign="bottom" style="padding:0in 0in 0in 0in;width:7.0%;">
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">ALF</font></p>
  </td>
  <td width="1%" valign="bottom" style="padding:0in 0in 0in 0in;width:1.98%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="8%" valign="bottom" style="padding:0in 0in 0in 0in;width:8.88%;">
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">3</font></p>
  </td>
  <td width="1%" valign="bottom" style="padding:0in 0in 0in 0in;width:1.98%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="8%" valign="bottom" style="padding:0in 0in 0in 0in;width:8.88%;">
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">N/A</font></p>
  </td>
  <td width="0%" valign="bottom" style="padding:0in 0in 0in 0in;width:.96%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="11%" valign="top" style="padding:0in 0in 0in 0in;width:11.82%;">
  <p align="right" style="margin:0in 0in .0001pt 10.0pt;text-align:right;text-indent:-10.0pt;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="1%" valign="top" style="padding:0in 0in 0in 0in;width:1.86%;">
  <p style="margin:0in 0in .0001pt 10.0pt;text-indent:-10.0pt;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="8%" valign="bottom" style="border:none;border-bottom:double windowtext 2.25pt;padding:0in 0in 0in 0in;width:8.66%;">
  <p align="right" style="margin:0in 0in .0001pt 10.0pt;text-align:right;text-indent:-10.0pt;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">$750</font></p>
  </td>
  <td width="3%" colspan="2" valign="bottom" style="padding:0in 0in 0in 0in;width:3.14%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="8%" valign="bottom" style="padding:0in 0in 0in 0in;width:8.9%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="1%" valign="bottom" style="padding:0in 0in 0in 0in;width:1.98%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="9%" valign="bottom" style="border:none;border-bottom:double windowtext 2.25pt;padding:0in 0in 0in 0in;width:9.08%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">$420</font></p>
  </td>
  <td width="2%" valign="bottom" style="border:none;padding:0in 0in 0in 0in;width:2.02%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="1%" valign="bottom" style="padding:0in 0in 0in 0in;width:1.5%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="8%" valign="bottom" style="border:none;border-bottom:double windowtext 2.25pt;padding:0in 0in 0in 0in;width:8.88%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">$330</font></p>
  </td>
  <td width="2%" valign="bottom" style="border:none;padding:0in 0in 0in 0in;width:2.0%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="1%" valign="bottom" style="padding:0in 0in 0in 0in;width:1.5%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="7%" valign="bottom" style="padding:0in 0in 0in 0in;width:7.0%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="1%" valign="bottom" style="padding:0in 0in 0in 0in;width:1.98%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="7%" valign="bottom" style="padding:0in 0in 0in 0in;width:7.0%;">
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="1%" valign="bottom" style="padding:0in 0in 0in 0in;width:1.98%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="8%" valign="bottom" style="padding:0in 0in 0in 0in;width:8.88%;">
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="1%" valign="bottom" style="padding:0in 0in 0in 0in;width:1.98%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="8%" valign="bottom" style="padding:0in 0in 0in 0in;width:8.88%;">
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="0%" valign="bottom" style="padding:0in 0in 0in 0in;width:.96%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr height="0">
  <td width="88" style="border:none;"></td>
  <td width="14" style="border:none;"></td>
  <td width="65" style="border:none;"></td>
  <td width="9" style="border:none;"></td>
  <td width="15" style="border:none;"></td>
  <td width="67" style="border:none;"></td>
  <td width="15" style="border:none;"></td>
  <td width="68" style="border:none;"></td>
  <td width="15" style="border:none;"></td>
  <td width="11" style="border:none;"></td>
  <td width="66" style="border:none;"></td>
  <td width="15" style="border:none;"></td>
  <td width="11" style="border:none;"></td>
  <td width="52" style="border:none;"></td>
  <td width="15" style="border:none;"></td>
  <td width="52" style="border:none;"></td>
  <td width="15" style="border:none;"></td>
  <td width="66" style="border:none;"></td>
  <td width="15" style="border:none;"></td>
  <td width="66" style="border:none;"></td>
  <td width="7" style="border:none;"></td>
 </tr>
</table>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<div style="margin:0in 0in .0001pt;"><hr size="1" width="15%" noshade color="black" align="left"></div>

<p style="margin:0in 0in .0001pt .25in;text-indent:-.25in;"><font size="1" face="Times New Roman" style="font-size:8.0pt;">(1)</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font size="1" style="font-size:8.0pt;">Other properties consist of independent
living properties and properties providing any combination of skilled nursing,
assisted living and/or independent living services.</font></p>

<p style="margin:0in 0in .0001pt .25in;text-indent:-.25in;"><font size="1" face="Times New Roman" style="font-size:8.0pt;">(2)</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font size="1" style="font-size:8.0pt;">Subsequent to June&nbsp;30, 2010, an
additional $100,000 was funded under this commitment.</font></p>

<p style="margin:0in 0in .0001pt .25in;text-indent:-.25in;"><font size="2" face="Times New Roman" style="font-size:11.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt .25in;text-indent:-.25in;"><b><font size="2" face="Times New Roman" style="font-size:11.0pt;font-weight:bold;">8.</font></b><b><font size="1" style="font-size:3.0pt;font-weight:bold;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font></b><b><font size="2" style="font-size:11.0pt;font-weight:bold;">Major Operators</font></b></p>

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:11.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:11.0pt;">We have three operators,
based on properties subject to lease agreements and secured by mortgage loans
that represent between 10% and 20% of our total assets and three operators from
each of which we derive over 10% of our rental revenue and interest income from
mortgage loans.</font></p>

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:11.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:11.0pt;">In 2006, Extendicare
Services, Inc. (or EHSI), one of our major operators, effected a reorganization
whereby it completed a spin-off of Assisted Living Concepts, Inc. (or
ALC).&#160; ALC is now a NYSE traded public
company operating assisted living centers. The remaining EHSI assets and
operations were converted into a Canadian REIT (Extendicare REIT) listed on the
Toronto Stock Exchange (or TSX).&#160; Both
Extendicare REIT and ALC continue to be parties to the leases with us.</font></p>

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:11.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:11.0pt;">Beginning in 2009,
Alterra Healthcare Corporation changed its name to Brookdale Senior Living
Communities, Inc. (or Brookdale Communities). Brookdale Communities is a wholly
owned subsidiary of a publicly traded company, Brookdale Senior Living, Inc.
(or Brookdale).</font></p>

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:11.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:11.0pt;">The following table
summarizes Extendicare REIT&#146;s, ALC&#146;s and Brookdale&#146;s financial information as
of and for the quarter ended March 31, 2010 per the operators&#146; public filings (<i>in thousands</i>).&#160; Our
other operator is privately owned and thus no public financial information is
available:</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:11.0pt;">&nbsp;</font></p>

<table border="0" cellspacing="0" cellpadding="0" width="96%" style="border-collapse:collapse;margin-left:.25in;width:96.64%;">
 <tr>
  <td width="46%" valign="bottom" style="padding:0in 0in 0in 0in;width:46.82%;">
  <p style="margin:0in 0in .0001pt 10.0pt;text-indent:-10.0pt;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.98%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="14%" colspan="2" valign="bottom" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0in 0in 0in 0in;width:14.36%;">
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">Extendicare&nbsp;REIT&nbsp;</font><font size="1" style="font-size:6.0pt;position:relative;top:-2.0pt;">(1)</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.98%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="14%" colspan="2" valign="bottom" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0in 0in 0in 0in;width:14.34%;">
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">ALC</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.98%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="15%" colspan="2" valign="bottom" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0in 0in 0in 0in;width:15.52%;">
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">Brookdale</font></p>
  </td>
 </tr>
 <tr>
  <td width="46%" valign="bottom" style="padding:0in 0in 0in 0in;width:46.82%;">
  <p style="margin:0in 0in .0001pt 10.0pt;text-indent:-10.0pt;"><i><font size="1" face="Times New Roman" style="font-size:9.0pt;font-style:italic;">&nbsp;</font></i></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.98%;">
  <p style="margin:0in 0in .0001pt;"><i><font size="1" face="Times New Roman" style="font-size:9.0pt;font-style:italic;">&nbsp;</font></i></p>
  </td>
  <td width="14%" colspan="2" valign="bottom" style="border:none;padding:0in 0in 0in 0in;width:14.36%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><i><font size="1" face="Times New Roman" style="font-size:9.0pt;font-style:italic;">&nbsp;</font></i></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.98%;">
  <p style="margin:0in 0in .0001pt;"><i><font size="1" face="Times New Roman" style="font-size:9.0pt;font-style:italic;">&nbsp;</font></i></p>
  </td>
  <td width="14%" colspan="2" valign="bottom" style="border:none;padding:0in 0in 0in 0in;width:14.34%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><i><font size="1" face="Times New Roman" style="font-size:9.0pt;font-style:italic;">&nbsp;</font></i></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.98%;">
  <p style="margin:0in 0in .0001pt;"><i><font size="1" face="Times New Roman" style="font-size:9.0pt;font-style:italic;">&nbsp;</font></i></p>
  </td>
  <td width="15%" colspan="2" valign="bottom" style="border:none;padding:0in 0in 0in 0in;width:15.52%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><i><font size="1" face="Times New Roman" style="font-size:9.0pt;font-style:italic;">&nbsp;</font></i></p>
  </td>
 </tr>
 <tr>
  <td width="46%" valign="bottom" style="padding:0in 0in 0in 0in;width:46.82%;">
  <p style="margin:0in 0in .0001pt 10.0pt;text-indent:-10.0pt;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">Current
  assets</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.98%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="10%" valign="bottom" style="padding:0in 0in 0in 0in;width:10.56%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">$&nbsp;&nbsp;515,161</font></p>
  </td>
  <td width="3%" valign="bottom" style="padding:0in 0in 0in 0in;width:3.78%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.98%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="10%" valign="bottom" style="padding:0in 0in 0in 0in;width:10.64%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">$&nbsp;&nbsp;27,171</font></p>
  </td>
  <td width="3%" valign="bottom" style="padding:0in 0in 0in 0in;width:3.7%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.98%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="11%" valign="bottom" style="padding:0in 0in 0in 0in;width:11.56%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">$&nbsp;&nbsp;347,005</font></p>
  </td>
  <td width="3%" valign="bottom" style="padding:0in 0in 0in 0in;width:3.96%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="46%" valign="bottom" style="padding:0in 0in 0in 0in;width:46.82%;">
  <p style="margin:0in 0in .0001pt 10.0pt;text-indent:-10.0pt;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">Non-current
  assets</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.98%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="10%" valign="bottom" style="padding:0in 0in 0in 0in;width:10.56%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">1,199,128</font></p>
  </td>
  <td width="3%" valign="bottom" style="padding:0in 0in 0in 0in;width:3.78%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.98%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="10%" valign="bottom" style="padding:0in 0in 0in 0in;width:10.64%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">429,769</font></p>
  </td>
  <td width="3%" valign="bottom" style="padding:0in 0in 0in 0in;width:3.7%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.98%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="11%" valign="bottom" style="padding:0in 0in 0in 0in;width:11.56%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">4,291,052</font></p>
  </td>
  <td width="3%" valign="bottom" style="padding:0in 0in 0in 0in;width:3.96%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="46%" valign="bottom" style="padding:0in 0in 0in 0in;width:46.82%;">
  <p style="margin:0in 0in .0001pt 10.0pt;text-indent:-10.0pt;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">Current
  liabilities</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.98%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="10%" valign="bottom" style="padding:0in 0in 0in 0in;width:10.56%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">309,031</font></p>
  </td>
  <td width="3%" valign="bottom" style="padding:0in 0in 0in 0in;width:3.78%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.98%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="10%" valign="bottom" style="padding:0in 0in 0in 0in;width:10.64%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">33,487</font></p>
  </td>
  <td width="3%" valign="bottom" style="padding:0in 0in 0in 0in;width:3.7%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.98%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="11%" valign="bottom" style="padding:0in 0in 0in 0in;width:11.56%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">672,203</font></p>
  </td>
  <td width="3%" valign="bottom" style="padding:0in 0in 0in 0in;width:3.96%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="46%" valign="bottom" style="padding:0in 0in 0in 0in;width:46.82%;">
  <p style="margin:0in 0in .0001pt 10.0pt;text-indent:-10.0pt;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">Non-current
  liabilities</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.98%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="10%" valign="bottom" style="padding:0in 0in 0in 0in;width:10.56%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">1,369,844</font></p>
  </td>
  <td width="3%" valign="bottom" style="padding:0in 0in 0in 0in;width:3.78%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.98%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="10%" valign="bottom" style="padding:0in 0in 0in 0in;width:10.64%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">146,647</font></p>
  </td>
  <td width="3%" valign="bottom" style="padding:0in 0in 0in 0in;width:3.7%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.98%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="11%" valign="bottom" style="padding:0in 0in 0in 0in;width:11.56%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">2,888,316</font></p>
  </td>
  <td width="3%" valign="bottom" style="padding:0in 0in 0in 0in;width:3.96%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="46%" valign="bottom" style="padding:0in 0in 0in 0in;width:46.82%;">
  <p style="margin:0in 0in .0001pt 10.0pt;text-indent:-10.0pt;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">Stockholders&#146;
  equity</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.98%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="10%" valign="bottom" style="padding:0in 0in 0in 0in;width:10.56%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">35,414</font></p>
  </td>
  <td width="3%" valign="bottom" style="padding:0in 0in 0in 0in;width:3.78%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.98%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="10%" valign="bottom" style="padding:0in 0in 0in 0in;width:10.64%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">276,806</font></p>
  </td>
  <td width="3%" valign="bottom" style="padding:0in 0in 0in 0in;width:3.7%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.98%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="11%" valign="bottom" style="padding:0in 0in 0in 0in;width:11.56%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">1,077,538</font></p>
  </td>
  <td width="3%" valign="bottom" style="padding:0in 0in 0in 0in;width:3.96%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="46%" valign="bottom" style="padding:0in 0in 0in 0in;width:46.82%;">
  <p style="margin:0in 0in .0001pt 10.0pt;text-indent:-10.0pt;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">&nbsp;</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.98%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">&nbsp;</font></p>
  </td>
  <td width="10%" valign="bottom" style="padding:0in 0in 0in 0in;width:10.56%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">&nbsp;</font></p>
  </td>
  <td width="3%" valign="bottom" style="padding:0in 0in 0in 0in;width:3.78%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">&nbsp;</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.98%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">&nbsp;</font></p>
  </td>
  <td width="10%" valign="bottom" style="padding:0in 0in 0in 0in;width:10.64%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">&nbsp;</font></p>
  </td>
  <td width="3%" valign="bottom" style="padding:0in 0in 0in 0in;width:3.7%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">&nbsp;</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.98%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">&nbsp;</font></p>
  </td>
  <td width="11%" valign="bottom" style="padding:0in 0in 0in 0in;width:11.56%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">&nbsp;</font></p>
  </td>
  <td width="3%" valign="bottom" style="padding:0in 0in 0in 0in;width:3.96%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="46%" valign="bottom" style="padding:0in 0in 0in 0in;width:46.82%;">
  <p style="margin:0in 0in .0001pt 10.0pt;text-indent:-10.0pt;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">Gross
  revenue</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.98%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="10%" valign="bottom" style="padding:0in 0in 0in 0in;width:10.56%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">508,834</font></p>
  </td>
  <td width="3%" valign="bottom" style="padding:0in 0in 0in 0in;width:3.78%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.98%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="10%" valign="bottom" style="padding:0in 0in 0in 0in;width:10.64%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">57,859</font></p>
  </td>
  <td width="3%" valign="bottom" style="padding:0in 0in 0in 0in;width:3.7%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.98%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="11%" valign="bottom" style="padding:0in 0in 0in 0in;width:11.56%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">544,424</font></p>
  </td>
  <td width="3%" valign="bottom" style="padding:0in 0in 0in 0in;width:3.96%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="46%" valign="bottom" style="padding:0in 0in 0in 0in;width:46.82%;">
  <p style="margin:0in 0in .0001pt 10.0pt;text-indent:-10.0pt;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">Operating
  expenses</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.98%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="10%" valign="bottom" style="padding:0in 0in 0in 0in;width:10.56%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">449,083</font></p>
  </td>
  <td width="3%" valign="bottom" style="padding:0in 0in 0in 0in;width:3.78%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.98%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="10%" valign="bottom" style="padding:0in 0in 0in 0in;width:10.64%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">50,239</font></p>
  </td>
  <td width="3%" valign="bottom" style="padding:0in 0in 0in 0in;width:3.7%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.98%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="11%" valign="bottom" style="padding:0in 0in 0in 0in;width:11.56%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">528,586</font></p>
  </td>
  <td width="3%" valign="bottom" style="padding:0in 0in 0in 0in;width:3.96%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="46%" valign="bottom" style="padding:0in 0in 0in 0in;width:46.82%;">
  <p style="margin:0in 0in .0001pt 10.0pt;text-indent:-10.0pt;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">Income
  (loss) from continuing operations</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.98%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="10%" valign="bottom" style="padding:0in 0in 0in 0in;width:10.56%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">15,156</font></p>
  </td>
  <td width="3%" valign="bottom" style="padding:0in 0in 0in 0in;width:3.78%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.98%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="10%" valign="bottom" style="padding:0in 0in 0in 0in;width:10.64%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">3,613</font></p>
  </td>
  <td width="3%" valign="bottom" style="padding:0in 0in 0in 0in;width:3.7%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.98%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="11%" valign="bottom" style="padding:0in 0in 0in 0in;width:11.56%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">(14,295</font></p>
  </td>
  <td width="3%" valign="bottom" style="padding:0in 0in 0in 0in;width:3.96%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">)</font></p>
  </td>
 </tr>
 <tr>
  <td width="46%" valign="bottom" style="padding:0in 0in 0in 0in;width:46.82%;">
  <p style="margin:0in 0in .0001pt 10.0pt;text-indent:-10.0pt;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">Net
  income (loss)</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.98%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="10%" valign="bottom" style="padding:0in 0in 0in 0in;width:10.56%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">15,566</font></p>
  </td>
  <td width="3%" valign="bottom" style="padding:0in 0in 0in 0in;width:3.78%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.98%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="10%" valign="bottom" style="padding:0in 0in 0in 0in;width:10.64%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">3,613</font></p>
  </td>
  <td width="3%" valign="bottom" style="padding:0in 0in 0in 0in;width:3.7%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.98%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="11%" valign="bottom" style="padding:0in 0in 0in 0in;width:11.56%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">(14,295</font></p>
  </td>
  <td width="3%" valign="bottom" style="padding:0in 0in 0in 0in;width:3.96%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">)</font></p>
  </td>
 </tr>
 <tr>
  <td width="46%" valign="bottom" style="padding:0in 0in 0in 0in;width:46.82%;">
  <p style="margin:0in 0in .0001pt 10.0pt;text-indent:-10.0pt;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">&nbsp;</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.98%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">&nbsp;</font></p>
  </td>
  <td width="10%" valign="bottom" style="padding:0in 0in 0in 0in;width:10.56%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">&nbsp;</font></p>
  </td>
  <td width="3%" valign="bottom" style="padding:0in 0in 0in 0in;width:3.78%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">&nbsp;</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.98%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">&nbsp;</font></p>
  </td>
  <td width="10%" valign="bottom" style="padding:0in 0in 0in 0in;width:10.64%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">&nbsp;</font></p>
  </td>
  <td width="3%" valign="bottom" style="padding:0in 0in 0in 0in;width:3.7%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">&nbsp;</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.98%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">&nbsp;</font></p>
  </td>
  <td width="11%" valign="bottom" style="padding:0in 0in 0in 0in;width:11.56%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">&nbsp;</font></p>
  </td>
  <td width="3%" valign="bottom" style="padding:0in 0in 0in 0in;width:3.96%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="46%" valign="bottom" style="padding:0in 0in 0in 0in;width:46.82%;">
  <p style="margin:0in 0in .0001pt 10.0pt;text-indent:-10.0pt;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">Cash
  provided by operations</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.98%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="10%" valign="bottom" style="padding:0in 0in 0in 0in;width:10.56%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">26,564</font></p>
  </td>
  <td width="3%" valign="bottom" style="padding:0in 0in 0in 0in;width:3.78%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.98%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="10%" valign="bottom" style="padding:0in 0in 0in 0in;width:10.64%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">10,109</font></p>
  </td>
  <td width="3%" valign="bottom" style="padding:0in 0in 0in 0in;width:3.7%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.98%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="11%" valign="bottom" style="padding:0in 0in 0in 0in;width:11.56%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">47,129</font></p>
  </td>
  <td width="3%" valign="bottom" style="padding:0in 0in 0in 0in;width:3.96%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="46%" valign="bottom" style="padding:0in 0in 0in 0in;width:46.82%;">
  <p style="margin:0in 0in .0001pt 10.0pt;text-indent:-10.0pt;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">Cash
  used in investing activities</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.98%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="10%" valign="bottom" style="padding:0in 0in 0in 0in;width:10.56%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">(16,897</font></p>
  </td>
  <td width="3%" valign="bottom" style="padding:0in 0in 0in 0in;width:3.78%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">)</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.98%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="10%" valign="bottom" style="padding:0in 0in 0in 0in;width:10.64%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">(3,859</font></p>
  </td>
  <td width="3%" valign="bottom" style="padding:0in 0in 0in 0in;width:3.7%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">)</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.98%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="11%" valign="bottom" style="padding:0in 0in 0in 0in;width:11.56%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">(51,975</font></p>
  </td>
  <td width="3%" valign="bottom" style="padding:0in 0in 0in 0in;width:3.96%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">)</font></p>
  </td>
 </tr>
 <tr>
  <td width="46%" valign="bottom" style="padding:0in 0in 0in 0in;width:46.82%;">
  <p style="margin:0in 0in .0001pt 10.0pt;text-indent:-10.0pt;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">Cash
  provided by (used in) financing activities</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.98%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="10%" valign="bottom" style="padding:0in 0in 0in 0in;width:10.56%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">74,461</font></p>
  </td>
  <td width="3%" valign="bottom" style="padding:0in 0in 0in 0in;width:3.78%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.98%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="10%" valign="bottom" style="padding:0in 0in 0in 0in;width:10.64%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">(479</font></p>
  </td>
  <td width="3%" valign="bottom" style="padding:0in 0in 0in 0in;width:3.7%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">)</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.98%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="11%" valign="bottom" style="padding:0in 0in 0in 0in;width:11.56%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">4,089</font></p>
  </td>
  <td width="3%" valign="bottom" style="padding:0in 0in 0in 0in;width:3.96%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
 </tr>
</table>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<div style="margin:0in 0in .0001pt .25in;"><hr size="1" width="15%" noshade color="black" align="left"></div>

<p style="margin:0in 0in .0001pt .25in;"><font size="1" face="Times New Roman" style="font-size:8.0pt;">(1)&#160;&#160; The numbers
shown for Extendicare REIT are in Canadian dollars and are prepared in
accordance with Canadian GAAP.</font></p>

<p style="margin:0in 0in .0001pt .25in;"><font size="1" face="Times New Roman" style="font-size:8.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt .5in;text-indent:-.15in;"><font size="1" face="Times New Roman" style="font-size:8.0pt;">*&#160;&#160; The financial information contained in the foregoing table for
Extendicare REIT, ALC and Brookdale is based on information we obtained from
such companies&#146; available public filings and, therefore, we have not independently
verified the accuracy of such information.</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">15<a name="PB_15_235739_4688"></a></font></p>

<div style="margin:0in 0in .0001pt;"><hr size="3" width="100%" noshade color="#010101" align="left"></div>

</div>
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<div style="font-family:Times New Roman;">

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><b><font size="3" face="Times New Roman" style="font-size:11.5pt;font-weight:bold;">LTC PROPERTIES, INC.</font></b></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><b><font size="3" face="Times New Roman" style="font-size:11.5pt;font-weight:bold;">NOTES TO CONSOLIDATED FINANCIAL STATEMENTS </font></b><b><font size="1" style="font-size:9.0pt;font-weight:bold;">CONTINUED</font></b></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><b><font size="3" face="Times New Roman" style="font-size:11.5pt;font-weight:bold;">(Unaudited)</font></b></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:11.0pt;">Extendicare REIT and ALC
collectively lease 37 assisted living properties with a total of 1,427 units
owned by us representing approximately 11.3%, or $58,663,000, of our total
assets at June&nbsp;30, 2010 and 15.5% of rental revenue and interest income
from mortgage loans recognized as of June&nbsp;30, 2010.</font></p>

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:11.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:11.0pt;">Brookdale Communities
leases 35 assisted living properties with a total of 1,416 units owned by us
representing approximately 11.3%, or $58,405,000, of our total assets at
June&nbsp;30, 2010 and 14.5% of rental revenue and interest income from
mortgage loans recognized as of June&nbsp;30, 2010.</font></p>

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:11.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:11.0pt;">Preferred Care, Inc. (or
Preferred Care), through various wholly owned subsidiaries, operates 31 skilled
nursing properties and two other properties that we own or on which we hold
mortgages secured by first trust deeds. These properties consist of a total of
3,963 skilled nursing beds and 49 assisted living units.&#160; This represents approximately 11.4%, or
$58,854,000, of our total assets at June&nbsp;30, 2010 and 14.9% of rental
revenue and interest income from mortgage loans recognized as of June&nbsp;30,
2010. They also operate one skilled nursing property under a sub-lease with
another lessee we have which is not included in the Preferred Care rental
revenue and interest income from mortgage loans.</font></p>

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:11.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:11.0pt;">Our financial position
and ability to make distributions may be adversely affected by financial
difficulties experienced by Brookdale Communities, Extendicare REIT, ALC,
Preferred Care, or any of our lessees and borrowers, including any
bankruptcies, inability to emerge from bankruptcy, insolvency or general
downturn in business of any such operator, or in the event any such operator
does not renew and/or extend its relationship with us or our borrowers when it
expires.</font></p>

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:11.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt .25in;text-indent:-.25in;"><b><font size="2" face="Times New Roman" style="font-size:11.0pt;font-weight:bold;">9.</font></b><b><font size="1" style="font-size:3.0pt;font-weight:bold;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font></b><b><font size="2" style="font-size:11.0pt;font-weight:bold;">Transactions with Related Party</font></b></p>

<p style="margin:0in 0in .0001pt .25in;text-indent:-.25in;"><font size="2" face="Times New Roman" style="font-size:11.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:11.0pt;">We have entered into
transactions with SHG.&#160; One of our
directors, Boyd W. Hendrickson, serves as Chief Executive Officer of SHG.</font></p>

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:11.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:11.0pt;">In December 2005, we
purchased, on the open market, $10,000,000 face value of SHG Senior
Subordinated Notes with a face rate of 11.0% and an effective yield of
11.1%.&#160; Our Board of Directors, with Mr.
Hendrickson abstaining, ratified the purchase of SHG Senior Subordinated
Notes.&#160; As a result of an early
redemption by SHG in 2007, we have a remaining investment in $6,500,000 face
value of SHG Senior Subordinated Notes at June&nbsp;30, 2010 and December 31,
2009.&#160; During each of the three and six
months ended June&nbsp;30, 2010 and 2009, we recognized $180,000 and $360,000
of interest income related to the SHG Senior Subordinated Notes. Interest on
the notes is payable semi-annually in arrears and the notes mature on January
15, 2014.&#160; Subsequent to June 30, 2010,
we received the semi-annual interest on the notes as scheduled.</font></p>

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:11.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:11.0pt;">In addition, during
September 2007 SHG purchased the assets of Laurel Healthcare (or Laurel).&#160; One of the assets SHG purchased was Laurel&#146;s
leasehold interests in the skilled nursing properties Laurel leased from us
under a 15-year master lease agreement dated in February 2006.&#160; Our Board of Directors, with Mr. Hendrickson
abstaining, ratified our consent to the assignment of Laurel&#146;s master lease to
subsidiaries of SHG.&#160; The economic terms
of the master lease agreement did not change as a result of our assignment of
the master lease to subsidiaries of SHG.&#160;
During the three and six months ended June&nbsp;30, 2010, we received
$1,042,000 and $2,076,000, respectively, in rental income and recorded $83,000
and $175,000, respectively, in straight-line rental income from subsidiaries of
SHG.&#160; During the three and six months
ended June&nbsp;30, 2009, we received $1,017,000 and $2,025,000, respectively,
in rental income and recorded $109,000 and $226,000, respectively, in
straight-line rental income from subsidiaries of SHG.&#160; At June&nbsp;30, 2010 and December 31, 2009,
the straight-line rent receivable from subsidiaries of SHG was $2,655,000 and
$2,480,000, respectively.</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">16<a name="PB_16_235807_2983"></a></font></p>

<div style="margin:0in 0in .0001pt;"><hr size="3" width="100%" noshade color="#010101" align="left"></div>

</div>
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<br clear="all" style="page-break-before:always;">
<div style="font-family:Times New Roman;">

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><b><font size="3" face="Times New Roman" style="font-size:11.5pt;font-weight:bold;">LTC
PROPERTIES, INC.</font></b></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><b><font size="3" face="Times New Roman" style="font-size:11.5pt;font-weight:bold;">NOTES
TO CONSOLIDATED FINANCIAL STATEMENTS </font></b><b><font size="1" style="font-size:9.0pt;font-weight:bold;">CONTINUED</font></b></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><b><font size="3" face="Times New Roman" style="font-size:11.5pt;font-weight:bold;">(Unaudited)</font></b></p>

<p style="margin:0in 0in .0001pt;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:11.0pt;">On July&nbsp;7,
2010, SHG reported that a Humboldt County, California, jury returned a verdict
against SHG related to a complaint filed on May&nbsp;4, 2006.&#160; The jury awarded the plaintiffs $613,000,000
in statutory damages and $58,000,000 in restitutionary damages.&#160; The plaintiffs alleged that certain
California-based facilities operated by SHG&#146;s wholly owned operating companies
failed to provide an adequate number of qualified personnel to care for their
residents and misrepresented the quality of care provided in their
facilities.&#160; SHG has stated publicly that
it believes the company is appropriately staffed and its caregivers work
diligently every day to provide the care and services its residents need and
deserve.&#160; SHG also announced that it has
agreed with the plaintiffs to enter into mediation.&#160; As part of the agreement, the plaintiffs will
not move to collect on their verdict against SHG, and, in return, SHG will not
transfer or impair any assets.</font></p>

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:11.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:11.0pt;">Accounting
Standards Codification No.&nbsp;320,&nbsp;<i>Investments&#151;Debt
and Equity Securities </i>(or ASC 320), requires an entity to assess
whether it intends to sell, or it is more likely than not that it will be
required to sell, a debt security in an unrealized loss position before
recovery of its amortized cost basis. If either of these criteria is met, the
entire difference between fair value and amortized cost is recognized as
impairment through earnings. For securities that do not meet the aforementioned
criteria, the amount of impairment is split into two components as follows: 1)
other-than-temporary impairment (or OTTI) related to other factors such as SHG&#146;s
ability to make scheduled interest or principal payments on the debt
securities, which is recognized in other comprehensive income and 2) OTTI
related to credit loss, which must be recognized in the income statement. The
credit loss is determined as the difference between the present value of the
cash flows expected to be collected and the amortized cost basis.</font></p>

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:11.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:11.0pt;">As a result of the
verdict against SHG, the fair value of our SHG Senior Subordinated Notes has
decreased below amortized cost basis which we believe to be temporary based on
the facts available to us.&#160; We do not intend
to sell the debt securities and currently we have concluded that it is not &#147;more
likely than not&#148; that we will be required to sell these securities before the
anticipated recovery of the remaining amortized cost basis.&#160; We will continue to evaluate our debt securities
for OTTI as the mediation between SHG and the plaintiffs progresses.</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">17<a name="PB_17_225826_7056"></a></font></p>

<div style="margin:0in 0in .0001pt;"><hr size="3" width="100%" noshade color="#010101" align="left"></div>

</div>
<!-- SEQ.=1,FOLIO='17',FILE='C:\JMS\105692\10-12718-1\task4210685\12718-1-ba-09.htm',USER='105692',CD='Jul 31 06:30 2010' -->


<br clear="all" style="page-break-before:always;">


<div style="font-family:Times New Roman;">

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><b><font size="3" face="Times New Roman" style="font-size:11.5pt;font-weight:bold;">LTC
PROPERTIES, INC.</font></b></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><b><font size="3" face="Times New Roman" style="font-size:11.5pt;font-weight:bold;">NOTES
TO CONSOLIDATED FINANCIAL STATEMENTS </font></b><b><font size="1" style="font-size:9.0pt;font-weight:bold;">CONTINUED</font></b></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><b><font size="3" face="Times New Roman" style="font-size:11.5pt;font-weight:bold;">(Unaudited)</font></b></p>

<p style="margin:0in 0in .0001pt;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt .25in;text-indent:-.25in;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">&nbsp;</font></b></p>

<p style="margin:0in 0in .0001pt .25in;text-indent:-.25in;"><b><font size="2" face="Times New Roman" style="font-size:11.0pt;font-weight:bold;">10.</font></b><b><font size="1" style="font-size:3.0pt;font-weight:bold;">&#160;&#160;&#160; </font></b><b><font size="2" style="font-size:11.0pt;font-weight:bold;">Earnings per Share</font></b></p>

<p style="margin:0in 0in .0001pt .25in;text-indent:-.25in;"><font size="2" face="Times New Roman" style="font-size:11.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:11.0pt;">The following
table sets forth the computation of basic and diluted net income per share (<i>in thousands, except per share amounts</i>):</font></p>

<p style="margin:0in 0in .0001pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">&nbsp;</font></b></p>

<table border="0" cellspacing="0" cellpadding="0" width="100%" style="border-collapse:collapse;width:100.02%;">
 <tr>
  <td width="44%" valign="bottom" style="padding:0in 0in 0in 0in;width:44.8%;">
  <p align="center" style="margin:0in 0in .0001pt 10.0pt;text-align:center;text-indent:-10.0pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;letter-spacing:-.15pt;">&nbsp;</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.38%;">
  <p align="center" style="margin:0in .25in .0001pt 0in;text-align:center;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="25%" colspan="5" valign="bottom" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0in 0in 0in 0in;width:25.22%;">
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;letter-spacing:-.15pt;">Three
  Months Ended<br>
  June&nbsp;30,</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.38%;">
  <p align="center" style="margin:0in .25in .0001pt 0in;text-align:center;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="25%" colspan="5" valign="bottom" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0in 0in 0in 0in;width:25.22%;">
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;letter-spacing:-.15pt;">Six
  Months Ended<br>
  June&nbsp;30,</font></p>
  </td>
 </tr>
 <tr>
  <td width="44%" valign="bottom" style="padding:0in 0in 0in 0in;width:44.8%;">
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:1.0pt;letter-spacing:-.15pt;">&nbsp;</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.38%;">
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="11%" colspan="2" valign="bottom" style="border:none;padding:0in 0in 0in 0in;width:11.44%;">
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;letter-spacing:-.15pt;">2010</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.38%;">
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="11%" colspan="2" valign="bottom" style="border:none;border-top:solid windowtext 1.0pt;padding:0in 0in 0in 0in;width:11.4%;">
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;letter-spacing:-.15pt;">2009</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.38%;">
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="11%" colspan="2" valign="bottom" style="border:none;padding:0in 0in 0in 0in;width:11.4%;">
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;letter-spacing:-.15pt;">2010</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.38%;">
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="11%" colspan="2" valign="bottom" style="border:none;border-top:solid windowtext 1.0pt;padding:0in 0in 0in 0in;width:11.44%;">
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;letter-spacing:-.15pt;">2009</font></p>
  </td>
 </tr>
 <tr>
  <td width="44%" valign="bottom" style="padding:0in 0in 0in 0in;width:44.8%;">
  <p style="margin:0in 0in .0001pt 10.0pt;text-indent:-10.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;letter-spacing:-.15pt;">&nbsp;</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.38%;">
  <p style="margin:0in .25in .0001pt 0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="7%" valign="bottom" style="border:none;border-top:solid windowtext 1.0pt;padding:0in 0in 0in 0in;width:7.6%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="3%" valign="bottom" style="border:none;border-top:solid windowtext 1.0pt;padding:0in 0in 0in 0in;width:3.84%;">
  <p style="margin:0in .25in .0001pt 0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.38%;">
  <p style="margin:0in .25in .0001pt 0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="7%" valign="bottom" style="border:none;border-top:solid windowtext 1.0pt;padding:0in 0in 0in 0in;width:7.66%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="3%" valign="bottom" style="border:none;border-top:solid windowtext 1.0pt;padding:0in 0in 0in 0in;width:3.74%;">
  <p style="margin:0in .25in .0001pt 0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.38%;">
  <p style="margin:0in .25in .0001pt 0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="7%" valign="bottom" style="border:none;border-top:solid windowtext 1.0pt;padding:0in 0in 0in 0in;width:7.66%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="3%" valign="bottom" style="border:none;border-top:solid windowtext 1.0pt;padding:0in 0in 0in 0in;width:3.74%;">
  <p style="margin:0in .25in .0001pt 0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.38%;">
  <p style="margin:0in .25in .0001pt 0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="7%" valign="bottom" style="border:none;border-top:solid windowtext 1.0pt;padding:0in 0in 0in 0in;width:7.58%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="3%" valign="bottom" style="border:none;border-top:solid windowtext 1.0pt;padding:0in 0in 0in 0in;width:3.86%;">
  <p style="margin:0in .25in .0001pt 0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="44%" valign="bottom" style="padding:0in 0in 0in 0in;width:44.8%;">
  <p style="margin:0in 0in .0001pt 10.0pt;text-indent:-10.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;letter-spacing:-.15pt;">Net income</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.38%;">
  <p style="margin:0in .25in .0001pt 0in;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="7%" valign="bottom" style="padding:0in 0in 0in 0in;width:7.6%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;&nbsp;&nbsp;&nbsp;$11,630</font></p>
  </td>
  <td width="3%" valign="bottom" style="padding:0in 0in 0in 0in;width:3.84%;">
  <p style="margin:0in .25in .0001pt 0in;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.38%;">
  <p style="margin:0in .25in .0001pt 0in;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="7%" valign="bottom" style="padding:0in 0in 0in 0in;width:7.66%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;&nbsp;&nbsp;&nbsp;</font><font size="2" style="font-size:10.0pt;">$10,740</font></p>
  </td>
  <td width="3%" valign="bottom" style="padding:0in 0in 0in 0in;width:3.74%;">
  <p style="margin:0in .25in .0001pt 0in;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.38%;">
  <p style="margin:0in .25in .0001pt 0in;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="7%" valign="bottom" style="padding:0in 0in 0in 0in;width:7.66%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;&nbsp;&nbsp;&nbsp;</font><font size="2" style="font-size:10.0pt;">$22,200</font></p>
  </td>
  <td width="3%" valign="bottom" style="padding:0in 0in 0in 0in;width:3.74%;">
  <p style="margin:0in .25in .0001pt 0in;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.38%;">
  <p style="margin:0in .25in .0001pt 0in;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="7%" valign="bottom" style="padding:0in 0in 0in 0in;width:7.58%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;&nbsp;&nbsp;&nbsp;</font><font size="2" style="font-size:10.0pt;">$21,978</font></p>
  </td>
  <td width="3%" valign="bottom" style="padding:0in 0in 0in 0in;width:3.86%;">
  <p style="margin:0in .25in .0001pt 0in;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="44%" valign="bottom" style="padding:0in 0in 0in 0in;width:44.8%;">
  <p style="margin:0in 0in .0001pt 10.0pt;text-indent:-10.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.38%;">
  <p style="margin:0in .25in .0001pt 0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="7%" valign="bottom" style="padding:0in 0in 0in 0in;width:7.6%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="3%" valign="bottom" style="padding:0in 0in 0in 0in;width:3.84%;">
  <p style="margin:0in .25in .0001pt 0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.38%;">
  <p style="margin:0in .25in .0001pt 0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="7%" valign="bottom" style="padding:0in 0in 0in 0in;width:7.66%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="3%" valign="bottom" style="padding:0in 0in 0in 0in;width:3.74%;">
  <p style="margin:0in .25in .0001pt 0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.38%;">
  <p style="margin:0in .25in .0001pt 0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="7%" valign="bottom" style="padding:0in 0in 0in 0in;width:7.66%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="3%" valign="bottom" style="padding:0in 0in 0in 0in;width:3.74%;">
  <p style="margin:0in .25in .0001pt 0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.38%;">
  <p style="margin:0in .25in .0001pt 0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="7%" valign="bottom" style="padding:0in 0in 0in 0in;width:7.58%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="3%" valign="bottom" style="padding:0in 0in 0in 0in;width:3.86%;">
  <p style="margin:0in .25in .0001pt 0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="44%" valign="bottom" style="padding:0in 0in 0in 0in;width:44.8%;">
  <p style="margin:0in 0in .0001pt 10.0pt;text-indent:-10.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;letter-spacing:-.15pt;">Less net income allocated to non-controlling interests:</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.38%;">
  <p style="margin:0in .25in .0001pt 0in;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="7%" valign="bottom" style="padding:0in 0in 0in 0in;width:7.6%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(48</font></p>
  </td>
  <td width="3%" valign="bottom" style="padding:0in 0in 0in 0in;width:3.84%;">
  <p style="margin:0in .25in .0001pt 0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">)</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.38%;">
  <p style="margin:0in .25in .0001pt 0in;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="7%" valign="bottom" style="padding:0in 0in 0in 0in;width:7.66%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(76</font></p>
  </td>
  <td width="3%" valign="bottom" style="padding:0in 0in 0in 0in;width:3.74%;">
  <p style="margin:0in .25in .0001pt 0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">)</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.38%;">
  <p style="margin:0in .25in .0001pt 0in;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="7%" valign="bottom" style="padding:0in 0in 0in 0in;width:7.66%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(96</font></p>
  </td>
  <td width="3%" valign="bottom" style="padding:0in 0in 0in 0in;width:3.74%;">
  <p style="margin:0in .25in .0001pt 0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">)</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.38%;">
  <p style="margin:0in .25in .0001pt 0in;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="7%" valign="bottom" style="padding:0in 0in 0in 0in;width:7.58%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(153</font></p>
  </td>
  <td width="3%" valign="bottom" style="padding:0in 0in 0in 0in;width:3.86%;">
  <p style="margin:0in .25in .0001pt 0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">)</font></p>
  </td>
 </tr>
 <tr>
  <td width="44%" valign="bottom" style="padding:0in 0in 0in 0in;width:44.8%;">
  <p style="margin:0in 0in .0001pt 10.0pt;text-indent:-10.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.38%;">
  <p style="margin:0in .25in .0001pt 0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="7%" valign="bottom" style="padding:0in 0in 0in 0in;width:7.6%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="3%" valign="bottom" style="padding:0in 0in 0in 0in;width:3.84%;">
  <p style="margin:0in .25in .0001pt 0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.38%;">
  <p style="margin:0in .25in .0001pt 0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="7%" valign="bottom" style="padding:0in 0in 0in 0in;width:7.66%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="3%" valign="bottom" style="padding:0in 0in 0in 0in;width:3.74%;">
  <p style="margin:0in .25in .0001pt 0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.38%;">
  <p style="margin:0in .25in .0001pt 0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="7%" valign="bottom" style="padding:0in 0in 0in 0in;width:7.66%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="3%" valign="bottom" style="padding:0in 0in 0in 0in;width:3.74%;">
  <p style="margin:0in .25in .0001pt 0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.38%;">
  <p style="margin:0in .25in .0001pt 0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="7%" valign="bottom" style="padding:0in 0in 0in 0in;width:7.58%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="3%" valign="bottom" style="padding:0in 0in 0in 0in;width:3.86%;">
  <p style="margin:0in .25in .0001pt 0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="44%" valign="bottom" style="padding:0in 0in 0in 0in;width:44.8%;">
  <p style="margin:0in 0in .0001pt 10.0pt;text-indent:-10.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;letter-spacing:-.15pt;">Less net income allocated to participating securities:</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.38%;">
  <p style="margin:0in .25in .0001pt 0in;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="7%" valign="bottom" style="padding:0in 0in 0in 0in;width:7.6%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="3%" valign="bottom" style="padding:0in 0in 0in 0in;width:3.84%;">
  <p style="margin:0in .25in .0001pt 0in;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.38%;">
  <p style="margin:0in .25in .0001pt 0in;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="7%" valign="bottom" style="padding:0in 0in 0in 0in;width:7.66%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="3%" valign="bottom" style="padding:0in 0in 0in 0in;width:3.74%;">
  <p style="margin:0in .25in .0001pt 0in;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.38%;">
  <p style="margin:0in .25in .0001pt 0in;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="7%" valign="bottom" style="padding:0in 0in 0in 0in;width:7.66%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="3%" valign="bottom" style="padding:0in 0in 0in 0in;width:3.74%;">
  <p style="margin:0in .25in .0001pt 0in;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.38%;">
  <p style="margin:0in .25in .0001pt 0in;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="7%" valign="bottom" style="padding:0in 0in 0in 0in;width:7.58%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="3%" valign="bottom" style="padding:0in 0in 0in 0in;width:3.86%;">
  <p style="margin:0in .25in .0001pt 0in;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="44%" valign="bottom" style="padding:0in 0in 0in 0in;width:44.8%;">
  <p style="margin:0in 0in .0001pt 20.0pt;text-indent:-10.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;letter-spacing:-.15pt;">Nonforfeitable dividends on participating securities</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.38%;">
  <p style="margin:0in .25in .0001pt 0in;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="7%" valign="bottom" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0in 0in 0in 0in;width:7.6%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(58</font></p>
  </td>
  <td width="3%" valign="bottom" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0in 0in 0in 0in;width:3.84%;">
  <p style="margin:0in .25in .0001pt 0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">)</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.38%;">
  <p style="margin:0in .25in .0001pt 0in;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="7%" valign="bottom" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0in 0in 0in 0in;width:7.66%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(35</font></p>
  </td>
  <td width="3%" valign="bottom" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0in 0in 0in 0in;width:3.74%;">
  <p style="margin:0in .25in .0001pt 0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">)</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.38%;">
  <p style="margin:0in .25in .0001pt 0in;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="7%" valign="bottom" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0in 0in 0in 0in;width:7.66%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(101</font></p>
  </td>
  <td width="3%" valign="bottom" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0in 0in 0in 0in;width:3.74%;">
  <p style="margin:0in .25in .0001pt 0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">)</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.38%;">
  <p style="margin:0in .25in .0001pt 0in;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="7%" valign="bottom" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0in 0in 0in 0in;width:7.58%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(71</font></p>
  </td>
  <td width="3%" valign="bottom" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0in 0in 0in 0in;width:3.86%;">
  <p style="margin:0in .25in .0001pt 0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">)</font></p>
  </td>
 </tr>
 <tr>
  <td width="44%" valign="bottom" style="padding:0in 0in 0in 0in;width:44.8%;">
  <p style="margin:0in 0in .0001pt 10.0pt;text-indent:-10.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;letter-spacing:-.15pt;">Total net income allocated to participating securities</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.38%;">
  <p style="margin:0in .25in .0001pt 0in;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="7%" valign="bottom" style="border:none;padding:0in 0in 0in 0in;width:7.6%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(58</font></p>
  </td>
  <td width="3%" valign="bottom" style="border:none;padding:0in 0in 0in 0in;width:3.84%;">
  <p style="margin:0in .25in .0001pt 0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">)</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.38%;">
  <p style="margin:0in .25in .0001pt 0in;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="7%" valign="bottom" style="border:none;padding:0in 0in 0in 0in;width:7.66%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(35</font></p>
  </td>
  <td width="3%" valign="bottom" style="border:none;padding:0in 0in 0in 0in;width:3.74%;">
  <p style="margin:0in .25in .0001pt 0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">)</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.38%;">
  <p style="margin:0in .25in .0001pt 0in;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="7%" valign="bottom" style="border:none;padding:0in 0in 0in 0in;width:7.66%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(101</font></p>
  </td>
  <td width="3%" valign="bottom" style="border:none;padding:0in 0in 0in 0in;width:3.74%;">
  <p style="margin:0in .25in .0001pt 0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">)</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.38%;">
  <p style="margin:0in .25in .0001pt 0in;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="7%" valign="bottom" style="border:none;padding:0in 0in 0in 0in;width:7.58%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(71</font></p>
  </td>
  <td width="3%" valign="bottom" style="border:none;padding:0in 0in 0in 0in;width:3.86%;">
  <p style="margin:0in .25in .0001pt 0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">)</font></p>
  </td>
 </tr>
 <tr>
  <td width="44%" valign="bottom" style="padding:0in 0in 0in 0in;width:44.8%;">
  <p style="margin:0in 0in .0001pt 10.0pt;text-indent:-10.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.38%;">
  <p style="margin:0in .25in .0001pt 0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="7%" valign="bottom" style="padding:0in 0in 0in 0in;width:7.6%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="3%" valign="bottom" style="padding:0in 0in 0in 0in;width:3.84%;">
  <p style="margin:0in .25in .0001pt 0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.38%;">
  <p style="margin:0in .25in .0001pt 0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="7%" valign="bottom" style="padding:0in 0in 0in 0in;width:7.66%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="3%" valign="bottom" style="padding:0in 0in 0in 0in;width:3.74%;">
  <p style="margin:0in .25in .0001pt 0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.38%;">
  <p style="margin:0in .25in .0001pt 0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="7%" valign="bottom" style="padding:0in 0in 0in 0in;width:7.66%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="3%" valign="bottom" style="padding:0in 0in 0in 0in;width:3.74%;">
  <p style="margin:0in .25in .0001pt 0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.38%;">
  <p style="margin:0in .25in .0001pt 0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="7%" valign="bottom" style="padding:0in 0in 0in 0in;width:7.58%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="3%" valign="bottom" style="padding:0in 0in 0in 0in;width:3.86%;">
  <p style="margin:0in .25in .0001pt 0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="44%" valign="bottom" style="padding:0in 0in 0in 0in;width:44.8%;">
  <p style="margin:0in 0in .0001pt 10.0pt;text-indent:-10.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;letter-spacing:-.15pt;">Less net income allocated to preferred stockholders:</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.38%;">
  <p style="margin:0in .25in .0001pt 0in;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="7%" valign="bottom" style="padding:0in 0in 0in 0in;width:7.6%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="3%" valign="bottom" style="padding:0in 0in 0in 0in;width:3.84%;">
  <p style="margin:0in .25in .0001pt 0in;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.38%;">
  <p style="margin:0in .25in .0001pt 0in;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="7%" valign="bottom" style="padding:0in 0in 0in 0in;width:7.66%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="3%" valign="bottom" style="padding:0in 0in 0in 0in;width:3.74%;">
  <p style="margin:0in .25in .0001pt 0in;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.38%;">
  <p style="margin:0in .25in .0001pt 0in;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="7%" valign="bottom" style="padding:0in 0in 0in 0in;width:7.66%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="3%" valign="bottom" style="padding:0in 0in 0in 0in;width:3.74%;">
  <p style="margin:0in .25in .0001pt 0in;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.38%;">
  <p style="margin:0in .25in .0001pt 0in;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="7%" valign="bottom" style="padding:0in 0in 0in 0in;width:7.58%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="3%" valign="bottom" style="padding:0in 0in 0in 0in;width:3.86%;">
  <p style="margin:0in .25in .0001pt 0in;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="44%" valign="bottom" style="padding:0in 0in 0in 0in;width:44.8%;">
  <p style="margin:0in 0in .0001pt 20.0pt;text-indent:-10.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;letter-spacing:-.15pt;">Preferred stock dividends</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.38%;">
  <p style="margin:0in .25in .0001pt 0in;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="7%" valign="bottom" style="padding:0in 0in 0in 0in;width:7.6%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(3,785</font></p>
  </td>
  <td width="3%" valign="bottom" style="padding:0in 0in 0in 0in;width:3.84%;">
  <p style="margin:0in .25in .0001pt 0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">)</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.38%;">
  <p style="margin:0in .25in .0001pt 0in;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="7%" valign="bottom" style="padding:0in 0in 0in 0in;width:7.66%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(3,786</font></p>
  </td>
  <td width="3%" valign="bottom" style="padding:0in 0in 0in 0in;width:3.74%;">
  <p style="margin:0in .25in .0001pt 0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">)</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.38%;">
  <p style="margin:0in .25in .0001pt 0in;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="7%" valign="bottom" style="padding:0in 0in 0in 0in;width:7.66%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(7,570</font></p>
  </td>
  <td width="3%" valign="bottom" style="padding:0in 0in 0in 0in;width:3.74%;">
  <p style="margin:0in .25in .0001pt 0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">)</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.38%;">
  <p style="margin:0in .25in .0001pt 0in;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="7%" valign="bottom" style="padding:0in 0in 0in 0in;width:7.58%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(7,571</font></p>
  </td>
  <td width="3%" valign="bottom" style="padding:0in 0in 0in 0in;width:3.86%;">
  <p style="margin:0in .25in .0001pt 0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">)</font></p>
  </td>
 </tr>
 <tr>
  <td width="44%" valign="bottom" style="padding:0in 0in 0in 0in;width:44.8%;">
  <p style="margin:0in 0in .0001pt 20.0pt;text-indent:-10.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;letter-spacing:-.15pt;">Allocation of income from preferred stock buyback</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.38%;">
  <p style="margin:0in .25in .0001pt 0in;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="7%" valign="bottom" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0in 0in 0in 0in;width:7.6%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#151;</font></p>
  </td>
  <td width="3%" valign="bottom" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0in 0in 0in 0in;width:3.84%;">
  <p style="margin:0in .25in .0001pt 0in;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.38%;">
  <p style="margin:0in .25in .0001pt 0in;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="7%" valign="bottom" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0in 0in 0in 0in;width:7.66%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#151;</font></p>
  </td>
  <td width="3%" valign="bottom" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0in 0in 0in 0in;width:3.74%;">
  <p style="margin:0in .25in .0001pt 0in;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.38%;">
  <p style="margin:0in .25in .0001pt 0in;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="7%" valign="bottom" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0in 0in 0in 0in;width:7.66%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#151;</font></p>
  </td>
  <td width="3%" valign="bottom" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0in 0in 0in 0in;width:3.74%;">
  <p style="margin:0in .25in .0001pt 0in;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.38%;">
  <p style="margin:0in .25in .0001pt 0in;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="7%" valign="bottom" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0in 0in 0in 0in;width:7.58%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">626</font></p>
  </td>
  <td width="3%" valign="bottom" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0in 0in 0in 0in;width:3.86%;">
  <p style="margin:0in .25in .0001pt 0in;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="44%" valign="bottom" style="padding:0in 0in 0in 0in;width:44.8%;">
  <p style="margin:0in 0in .0001pt 10.0pt;text-indent:-10.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;letter-spacing:-.15pt;">Total net income allocated to preferred stockholders</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.38%;">
  <p style="margin:0in .25in .0001pt 0in;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="7%" valign="bottom" style="border:none;padding:0in 0in 0in 0in;width:7.6%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(3,785</font></p>
  </td>
  <td width="3%" valign="bottom" style="border:none;padding:0in 0in 0in 0in;width:3.84%;">
  <p style="margin:0in .25in .0001pt 0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">)</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.38%;">
  <p style="margin:0in .25in .0001pt 0in;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="7%" valign="bottom" style="border:none;padding:0in 0in 0in 0in;width:7.66%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(3,786</font></p>
  </td>
  <td width="3%" valign="bottom" style="border:none;padding:0in 0in 0in 0in;width:3.74%;">
  <p style="margin:0in .25in .0001pt 0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">)</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.38%;">
  <p style="margin:0in .25in .0001pt 0in;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="7%" valign="bottom" style="border:none;padding:0in 0in 0in 0in;width:7.66%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(7,570</font></p>
  </td>
  <td width="3%" valign="bottom" style="border:none;padding:0in 0in 0in 0in;width:3.74%;">
  <p style="margin:0in .25in .0001pt 0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">)</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.38%;">
  <p style="margin:0in .25in .0001pt 0in;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="7%" valign="bottom" style="border:none;padding:0in 0in 0in 0in;width:7.58%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(6,945</font></p>
  </td>
  <td width="3%" valign="bottom" style="border:none;padding:0in 0in 0in 0in;width:3.86%;">
  <p style="margin:0in .25in .0001pt 0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">)</font></p>
  </td>
 </tr>
 <tr>
  <td width="44%" valign="bottom" style="padding:0in 0in 0in 0in;width:44.8%;">
  <p style="margin:0in 0in .0001pt 10.0pt;text-indent:-10.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.38%;">
  <p style="margin:0in .25in .0001pt 0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="7%" valign="bottom" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0in 0in 0in 0in;width:7.6%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="3%" valign="bottom" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0in 0in 0in 0in;width:3.84%;">
  <p style="margin:0in .25in .0001pt 0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.38%;">
  <p style="margin:0in .25in .0001pt 0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="7%" valign="bottom" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0in 0in 0in 0in;width:7.66%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="3%" valign="bottom" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0in 0in 0in 0in;width:3.74%;">
  <p style="margin:0in .25in .0001pt 0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.38%;">
  <p style="margin:0in .25in .0001pt 0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="7%" valign="bottom" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0in 0in 0in 0in;width:7.66%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="3%" valign="bottom" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0in 0in 0in 0in;width:3.74%;">
  <p style="margin:0in .25in .0001pt 0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.38%;">
  <p style="margin:0in .25in .0001pt 0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="7%" valign="bottom" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0in 0in 0in 0in;width:7.58%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="3%" valign="bottom" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0in 0in 0in 0in;width:3.86%;">
  <p style="margin:0in .25in .0001pt 0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="44%" valign="bottom" style="padding:0in 0in 0in 0in;width:44.8%;">
  <p style="margin:0in 0in .0001pt 10.0pt;text-indent:-10.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;letter-spacing:-.15pt;">Total net income allocable to common stockholders</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.38%;">
  <p style="margin:0in .25in .0001pt 0in;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="7%" valign="bottom" style="border:none;padding:0in 0in 0in 0in;width:7.6%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">7,739</font></p>
  </td>
  <td width="3%" valign="bottom" style="border:none;padding:0in 0in 0in 0in;width:3.84%;">
  <p style="margin:0in .25in .0001pt 0in;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.38%;">
  <p style="margin:0in .25in .0001pt 0in;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="7%" valign="bottom" style="border:none;padding:0in 0in 0in 0in;width:7.66%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">6,843</font></p>
  </td>
  <td width="3%" valign="bottom" style="border:none;padding:0in 0in 0in 0in;width:3.74%;">
  <p style="margin:0in .25in .0001pt 0in;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.38%;">
  <p style="margin:0in .25in .0001pt 0in;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="7%" valign="bottom" style="border:none;padding:0in 0in 0in 0in;width:7.66%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">14,433</font></p>
  </td>
  <td width="3%" valign="bottom" style="border:none;padding:0in 0in 0in 0in;width:3.74%;">
  <p style="margin:0in .25in .0001pt 0in;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.38%;">
  <p style="margin:0in .25in .0001pt 0in;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="7%" valign="bottom" style="border:none;padding:0in 0in 0in 0in;width:7.58%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">14,809</font></p>
  </td>
  <td width="3%" valign="bottom" style="border:none;padding:0in 0in 0in 0in;width:3.86%;">
  <p style="margin:0in .25in .0001pt 0in;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="44%" valign="bottom" style="padding:0in 0in 0in 0in;width:44.8%;">
  <p style="margin:0in 0in .0001pt 10.0pt;text-indent:-10.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.38%;">
  <p style="margin:0in .25in .0001pt 0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="7%" valign="bottom" style="padding:0in 0in 0in 0in;width:7.6%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="3%" valign="bottom" style="padding:0in 0in 0in 0in;width:3.84%;">
  <p style="margin:0in .25in .0001pt 0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.38%;">
  <p style="margin:0in .25in .0001pt 0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="7%" valign="bottom" style="padding:0in 0in 0in 0in;width:7.66%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="3%" valign="bottom" style="padding:0in 0in 0in 0in;width:3.74%;">
  <p style="margin:0in .25in .0001pt 0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.38%;">
  <p style="margin:0in .25in .0001pt 0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="7%" valign="bottom" style="padding:0in 0in 0in 0in;width:7.66%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="3%" valign="bottom" style="padding:0in 0in 0in 0in;width:3.74%;">
  <p style="margin:0in .25in .0001pt 0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.38%;">
  <p style="margin:0in .25in .0001pt 0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="7%" valign="bottom" style="padding:0in 0in 0in 0in;width:7.58%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="3%" valign="bottom" style="padding:0in 0in 0in 0in;width:3.86%;">
  <p style="margin:0in .25in .0001pt 0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="44%" valign="bottom" style="padding:0in 0in 0in 0in;width:44.8%;">
  <p style="margin:0in 0in .0001pt 10.0pt;text-indent:-10.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;letter-spacing:-.15pt;">Effect of dilutive securities:</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.38%;">
  <p style="margin:0in .25in .0001pt 0in;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="7%" valign="bottom" style="padding:0in 0in 0in 0in;width:7.6%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="3%" valign="bottom" style="padding:0in 0in 0in 0in;width:3.84%;">
  <p style="margin:0in .25in .0001pt 0in;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.38%;">
  <p style="margin:0in .25in .0001pt 0in;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="7%" valign="bottom" style="padding:0in 0in 0in 0in;width:7.66%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="3%" valign="bottom" style="padding:0in 0in 0in 0in;width:3.74%;">
  <p style="margin:0in .25in .0001pt 0in;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.38%;">
  <p style="margin:0in .25in .0001pt 0in;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="7%" valign="bottom" style="padding:0in 0in 0in 0in;width:7.66%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="3%" valign="bottom" style="padding:0in 0in 0in 0in;width:3.74%;">
  <p style="margin:0in .25in .0001pt 0in;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.38%;">
  <p style="margin:0in .25in .0001pt 0in;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="7%" valign="bottom" style="padding:0in 0in 0in 0in;width:7.58%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="3%" valign="bottom" style="padding:0in 0in 0in 0in;width:3.86%;">
  <p style="margin:0in .25in .0001pt 0in;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="44%" valign="bottom" style="padding:0in 0in 0in 0in;width:44.8%;">
  <p style="margin:0in 0in .0001pt 17.3pt;text-indent:-10.1pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;letter-spacing:-.15pt;">Convertible preferred securities</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.38%;">
  <p style="margin:0in .25in .0001pt 0in;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="7%" valign="bottom" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0in 0in 0in 0in;width:7.6%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">20</font></p>
  </td>
  <td width="3%" valign="bottom" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0in 0in 0in 0in;width:3.84%;">
  <p style="margin:0in .25in .0001pt 0in;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.38%;">
  <p style="margin:0in .25in .0001pt 0in;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="7%" valign="bottom" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0in 0in 0in 0in;width:7.66%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">20</font></p>
  </td>
  <td width="3%" valign="bottom" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0in 0in 0in 0in;width:3.74%;">
  <p style="margin:0in .25in .0001pt 0in;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.38%;">
  <p style="margin:0in .25in .0001pt 0in;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="7%" valign="bottom" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0in 0in 0in 0in;width:7.66%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">40</font></p>
  </td>
  <td width="3%" valign="bottom" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0in 0in 0in 0in;width:3.74%;">
  <p style="margin:0in .25in .0001pt 0in;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.38%;">
  <p style="margin:0in .25in .0001pt 0in;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="7%" valign="bottom" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0in 0in 0in 0in;width:7.58%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">41</font></p>
  </td>
  <td width="3%" valign="bottom" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0in 0in 0in 0in;width:3.86%;">
  <p style="margin:0in .25in .0001pt 0in;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="44%" valign="bottom" style="padding:0in 0in 0in 0in;width:44.8%;">
  <p style="margin:0in 0in .0001pt 17.3pt;text-indent:-10.1pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;letter-spacing:-.15pt;">Net income for diluted net income per share</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.38%;">
  <p style="margin:0in .25in .0001pt 0in;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="7%" valign="bottom" style="border:none;border-bottom:double windowtext 2.25pt;padding:0in 0in 0in 0in;width:7.6%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;&nbsp;$7,759</font></p>
  </td>
  <td width="3%" valign="bottom" style="border:none;border-bottom:double windowtext 2.25pt;padding:0in 0in 0in 0in;width:3.84%;">
  <p style="margin:0in .25in .0001pt 0in;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.38%;">
  <p style="margin:0in .25in .0001pt 0in;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="7%" valign="bottom" style="border:none;border-bottom:double windowtext 2.25pt;padding:0in 0in 0in 0in;width:7.66%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;&nbsp;$6,863</font></p>
  </td>
  <td width="3%" valign="bottom" style="border:none;border-bottom:double windowtext 2.25pt;padding:0in 0in 0in 0in;width:3.74%;">
  <p style="margin:0in .25in .0001pt 0in;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.38%;">
  <p style="margin:0in .25in .0001pt 0in;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="7%" valign="bottom" style="border:none;border-bottom:double windowtext 2.25pt;padding:0in 0in 0in 0in;width:7.66%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">$14,473</font></p>
  </td>
  <td width="3%" valign="bottom" style="border:none;border-bottom:double windowtext 2.25pt;padding:0in 0in 0in 0in;width:3.74%;">
  <p style="margin:0in .25in .0001pt 0in;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.38%;">
  <p style="margin:0in .25in .0001pt 0in;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="7%" valign="bottom" style="border:none;border-bottom:double windowtext 2.25pt;padding:0in 0in 0in 0in;width:7.58%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">$14,850</font></p>
  </td>
  <td width="3%" valign="bottom" style="border:none;border-bottom:double windowtext 2.25pt;padding:0in 0in 0in 0in;width:3.86%;">
  <p style="margin:0in .25in .0001pt 0in;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="44%" valign="bottom" style="padding:0in 0in 0in 0in;width:44.8%;">
  <p style="margin:0in 0in .0001pt 10.0pt;text-indent:-10.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.38%;">
  <p style="margin:0in .25in .0001pt 0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="7%" valign="bottom" style="border:none;padding:0in 0in 0in 0in;width:7.6%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="3%" valign="bottom" style="border:none;padding:0in 0in 0in 0in;width:3.84%;">
  <p style="margin:0in .25in .0001pt 0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.38%;">
  <p style="margin:0in .25in .0001pt 0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="7%" valign="bottom" style="border:none;padding:0in 0in 0in 0in;width:7.66%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="3%" valign="bottom" style="border:none;padding:0in 0in 0in 0in;width:3.74%;">
  <p style="margin:0in .25in .0001pt 0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.38%;">
  <p style="margin:0in .25in .0001pt 0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="7%" valign="bottom" style="border:none;padding:0in 0in 0in 0in;width:7.66%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="3%" valign="bottom" style="border:none;padding:0in 0in 0in 0in;width:3.74%;">
  <p style="margin:0in .25in .0001pt 0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.38%;">
  <p style="margin:0in .25in .0001pt 0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="7%" valign="bottom" style="border:none;padding:0in 0in 0in 0in;width:7.58%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="3%" valign="bottom" style="border:none;padding:0in 0in 0in 0in;width:3.86%;">
  <p style="margin:0in .25in .0001pt 0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="44%" valign="bottom" style="padding:0in 0in 0in 0in;width:44.8%;">
  <p style="margin:0in 0in .0001pt 10.0pt;text-indent:-10.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;letter-spacing:-.15pt;">Shares for basic net income per share</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.38%;">
  <p style="margin:0in .25in .0001pt 0in;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="7%" valign="bottom" style="padding:0in 0in 0in 0in;width:7.6%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">23,643</font></p>
  </td>
  <td width="3%" valign="bottom" style="padding:0in 0in 0in 0in;width:3.84%;">
  <p style="margin:0in .25in .0001pt 0in;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.38%;">
  <p style="margin:0in .25in .0001pt 0in;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="7%" valign="bottom" style="padding:0in 0in 0in 0in;width:7.66%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">23,081</font></p>
  </td>
  <td width="3%" valign="bottom" style="padding:0in 0in 0in 0in;width:3.74%;">
  <p style="margin:0in .25in .0001pt 0in;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.38%;">
  <p style="margin:0in .25in .0001pt 0in;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="7%" valign="bottom" style="padding:0in 0in 0in 0in;width:7.66%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">23,464</font></p>
  </td>
  <td width="3%" valign="bottom" style="padding:0in 0in 0in 0in;width:3.74%;">
  <p style="margin:0in .25in .0001pt 0in;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.38%;">
  <p style="margin:0in .25in .0001pt 0in;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="7%" valign="bottom" style="padding:0in 0in 0in 0in;width:7.58%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">23,070</font></p>
  </td>
  <td width="3%" valign="bottom" style="padding:0in 0in 0in 0in;width:3.86%;">
  <p style="margin:0in .25in .0001pt 0in;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="44%" valign="bottom" style="padding:0in 0in 0in 0in;width:44.8%;">
  <p style="margin:0in 0in .0001pt 10.0pt;text-indent:-10.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;letter-spacing:-.15pt;">Effect of dilutive securities:</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.38%;">
  <p style="margin:0in .25in .0001pt 0in;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="7%" valign="bottom" style="padding:0in 0in 0in 0in;width:7.6%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="3%" valign="bottom" style="padding:0in 0in 0in 0in;width:3.84%;">
  <p style="margin:0in .25in .0001pt 0in;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.38%;">
  <p style="margin:0in .25in .0001pt 0in;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="7%" valign="bottom" style="padding:0in 0in 0in 0in;width:7.66%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="3%" valign="bottom" style="padding:0in 0in 0in 0in;width:3.74%;">
  <p style="margin:0in .25in .0001pt 0in;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.38%;">
  <p style="margin:0in .25in .0001pt 0in;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="7%" valign="bottom" style="padding:0in 0in 0in 0in;width:7.66%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="3%" valign="bottom" style="padding:0in 0in 0in 0in;width:3.74%;">
  <p style="margin:0in .25in .0001pt 0in;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.38%;">
  <p style="margin:0in .25in .0001pt 0in;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="7%" valign="bottom" style="padding:0in 0in 0in 0in;width:7.58%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="3%" valign="bottom" style="padding:0in 0in 0in 0in;width:3.86%;">
  <p style="margin:0in .25in .0001pt 0in;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="44%" valign="bottom" style="padding:0in 0in 0in 0in;width:44.8%;">
  <p style="margin:0in 0in .0001pt 17.3pt;text-indent:-10.1pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;letter-spacing:-.15pt;">Stock options</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.38%;">
  <p style="margin:0in .25in .0001pt 0in;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="7%" valign="bottom" style="padding:0in 0in 0in 0in;width:7.6%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">24</font></p>
  </td>
  <td width="3%" valign="bottom" style="padding:0in 0in 0in 0in;width:3.84%;">
  <p style="margin:0in .25in .0001pt 0in;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.38%;">
  <p style="margin:0in .25in .0001pt 0in;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="7%" valign="bottom" style="padding:0in 0in 0in 0in;width:7.66%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">6</font></p>
  </td>
  <td width="3%" valign="bottom" style="padding:0in 0in 0in 0in;width:3.74%;">
  <p style="margin:0in .25in .0001pt 0in;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.38%;">
  <p style="margin:0in .25in .0001pt 0in;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="7%" valign="bottom" style="padding:0in 0in 0in 0in;width:7.66%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">24</font></p>
  </td>
  <td width="3%" valign="bottom" style="padding:0in 0in 0in 0in;width:3.74%;">
  <p style="margin:0in .25in .0001pt 0in;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.38%;">
  <p style="margin:0in .25in .0001pt 0in;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="7%" valign="bottom" style="padding:0in 0in 0in 0in;width:7.58%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">6</font></p>
  </td>
  <td width="3%" valign="bottom" style="padding:0in 0in 0in 0in;width:3.86%;">
  <p style="margin:0in .25in .0001pt 0in;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="44%" valign="bottom" style="padding:0in 0in 0in 0in;width:44.8%;">
  <p style="margin:0in 0in .0001pt 17.3pt;text-indent:-10.1pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;letter-spacing:-.15pt;">Convertible preferred securities</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.38%;">
  <p style="margin:0in .25in .0001pt 0in;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="7%" valign="bottom" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0in 0in 0in 0in;width:7.6%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">76</font></p>
  </td>
  <td width="3%" valign="bottom" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0in 0in 0in 0in;width:3.84%;">
  <p style="margin:0in .25in .0001pt 0in;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.38%;">
  <p style="margin:0in .25in .0001pt 0in;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="7%" valign="bottom" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0in 0in 0in 0in;width:7.66%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">76</font></p>
  </td>
  <td width="3%" valign="bottom" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0in 0in 0in 0in;width:3.74%;">
  <p style="margin:0in .25in .0001pt 0in;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.38%;">
  <p style="margin:0in .25in .0001pt 0in;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="7%" valign="bottom" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0in 0in 0in 0in;width:7.66%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">75</font></p>
  </td>
  <td width="3%" valign="bottom" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0in 0in 0in 0in;width:3.74%;">
  <p style="margin:0in .25in .0001pt 0in;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.38%;">
  <p style="margin:0in .25in .0001pt 0in;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="7%" valign="bottom" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0in 0in 0in 0in;width:7.58%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">75</font></p>
  </td>
  <td width="3%" valign="bottom" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0in 0in 0in 0in;width:3.86%;">
  <p style="margin:0in .25in .0001pt 0in;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="44%" valign="bottom" style="padding:0in 0in 0in 0in;width:44.8%;">
  <p style="margin:0in 0in .0001pt 10.0pt;text-indent:-10.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;letter-spacing:-.15pt;">Shares for diluted net income per share</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.38%;">
  <p style="margin:0in .25in .0001pt 0in;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="7%" valign="bottom" style="border:none;border-bottom:double windowtext 2.25pt;padding:0in 0in 0in 0in;width:7.6%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">23,743</font></p>
  </td>
  <td width="3%" valign="bottom" style="border:none;border-bottom:double windowtext 2.25pt;padding:0in 0in 0in 0in;width:3.84%;">
  <p style="margin:0in .25in .0001pt 0in;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.38%;">
  <p style="margin:0in .25in .0001pt 0in;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="7%" valign="bottom" style="border:none;border-bottom:double windowtext 2.25pt;padding:0in 0in 0in 0in;width:7.66%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">23,163</font></p>
  </td>
  <td width="3%" valign="bottom" style="border:none;border-bottom:double windowtext 2.25pt;padding:0in 0in 0in 0in;width:3.74%;">
  <p style="margin:0in .25in .0001pt 0in;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.38%;">
  <p style="margin:0in .25in .0001pt 0in;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="7%" valign="bottom" style="border:none;border-bottom:double windowtext 2.25pt;padding:0in 0in 0in 0in;width:7.66%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">23,563</font></p>
  </td>
  <td width="3%" valign="bottom" style="border:none;border-bottom:double windowtext 2.25pt;padding:0in 0in 0in 0in;width:3.74%;">
  <p style="margin:0in .25in .0001pt 0in;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.38%;">
  <p style="margin:0in .25in .0001pt 0in;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="7%" valign="bottom" style="border:none;border-bottom:double windowtext 2.25pt;padding:0in 0in 0in 0in;width:7.58%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">23,151</font></p>
  </td>
  <td width="3%" valign="bottom" style="border:none;border-bottom:double windowtext 2.25pt;padding:0in 0in 0in 0in;width:3.86%;">
  <p style="margin:0in .25in .0001pt 0in;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="44%" valign="bottom" style="padding:0in 0in 0in 0in;width:44.8%;">
  <p style="margin:0in 0in .0001pt 10.0pt;text-indent:-10.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.38%;">
  <p style="margin:0in .25in .0001pt 0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="7%" valign="bottom" style="border:none;padding:0in 0in 0in 0in;width:7.6%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="3%" valign="bottom" style="border:none;padding:0in 0in 0in 0in;width:3.84%;">
  <p style="margin:0in .25in .0001pt 0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.38%;">
  <p style="margin:0in .25in .0001pt 0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="7%" valign="bottom" style="border:none;padding:0in 0in 0in 0in;width:7.66%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="3%" valign="bottom" style="border:none;padding:0in 0in 0in 0in;width:3.74%;">
  <p style="margin:0in .25in .0001pt 0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.38%;">
  <p style="margin:0in .25in .0001pt 0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="7%" valign="bottom" style="border:none;padding:0in 0in 0in 0in;width:7.66%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="3%" valign="bottom" style="border:none;padding:0in 0in 0in 0in;width:3.74%;">
  <p style="margin:0in .25in .0001pt 0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.38%;">
  <p style="margin:0in .25in .0001pt 0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="7%" valign="bottom" style="border:none;padding:0in 0in 0in 0in;width:7.58%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="3%" valign="bottom" style="border:none;padding:0in 0in 0in 0in;width:3.86%;">
  <p style="margin:0in .25in .0001pt 0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="44%" valign="bottom" style="padding:0in 0in 0in 0in;width:44.8%;">
  <p style="margin:0in 0in .0001pt 10.0pt;text-indent:-10.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;letter-spacing:-.15pt;">Basic net income per share</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.38%;">
  <p style="margin:0in .25in .0001pt 0in;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="7%" valign="bottom" style="border:none;border-bottom:double windowtext 2.25pt;padding:0in 0in 0in 0in;width:7.6%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;&nbsp;$0.33</font></p>
  </td>
  <td width="3%" valign="bottom" style="border:none;border-bottom:double windowtext 2.25pt;padding:0in 0in 0in 0in;width:3.84%;">
  <p style="margin:0in .25in .0001pt 0in;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.38%;">
  <p style="margin:0in .25in .0001pt 0in;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="7%" valign="bottom" style="border:none;border-bottom:double windowtext 2.25pt;padding:0in 0in 0in 0in;width:7.66%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">$0.30</font></p>
  </td>
  <td width="3%" valign="bottom" style="border:none;border-bottom:double windowtext 2.25pt;padding:0in 0in 0in 0in;width:3.74%;">
  <p style="margin:0in .25in .0001pt 0in;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.38%;">
  <p style="margin:0in .25in .0001pt 0in;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="7%" valign="bottom" style="border:none;border-bottom:double windowtext 2.25pt;padding:0in 0in 0in 0in;width:7.66%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">$0.62</font></p>
  </td>
  <td width="3%" valign="bottom" style="border:none;border-bottom:double windowtext 2.25pt;padding:0in 0in 0in 0in;width:3.74%;">
  <p style="margin:0in .25in .0001pt 0in;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.38%;">
  <p style="margin:0in .25in .0001pt 0in;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="7%" valign="bottom" style="border:none;border-bottom:double windowtext 2.25pt;padding:0in 0in 0in 0in;width:7.58%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">$0.64</font></p>
  </td>
  <td width="3%" valign="bottom" style="border:none;border-bottom:double windowtext 2.25pt;padding:0in 0in 0in 0in;width:3.86%;">
  <p style="margin:0in .25in .0001pt 0in;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="44%" valign="bottom" style="padding:0in 0in 0in 0in;width:44.8%;">
  <p style="margin:0in 0in .0001pt 10.0pt;text-indent:-10.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;letter-spacing:-.15pt;">Diluted net income per share </font><font size="1" style="font-size:6.5pt;letter-spacing:-.15pt;position:relative;top:-3.0pt;">(1)</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.38%;">
  <p style="margin:0in .25in .0001pt 0in;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="7%" valign="bottom" style="border:none;border-bottom:double windowtext 2.25pt;padding:0in 0in 0in 0in;width:7.6%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;&nbsp;$0.33</font></p>
  </td>
  <td width="3%" valign="bottom" style="border:none;border-bottom:double windowtext 2.25pt;padding:0in 0in 0in 0in;width:3.84%;">
  <p style="margin:0in .25in .0001pt 0in;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.38%;">
  <p style="margin:0in .25in .0001pt 0in;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="7%" valign="bottom" style="border:none;border-bottom:double windowtext 2.25pt;padding:0in 0in 0in 0in;width:7.66%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">$0.30</font></p>
  </td>
  <td width="3%" valign="bottom" style="border:none;border-bottom:double windowtext 2.25pt;padding:0in 0in 0in 0in;width:3.74%;">
  <p style="margin:0in .25in .0001pt 0in;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.38%;">
  <p style="margin:0in .25in .0001pt 0in;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="7%" valign="bottom" style="border:none;border-bottom:double windowtext 2.25pt;padding:0in 0in 0in 0in;width:7.66%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">$0.61</font></p>
  </td>
  <td width="3%" valign="bottom" style="border:none;border-bottom:double windowtext 2.25pt;padding:0in 0in 0in 0in;width:3.74%;">
  <p style="margin:0in .25in .0001pt 0in;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.38%;">
  <p style="margin:0in .25in .0001pt 0in;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="7%" valign="bottom" style="border:none;border-bottom:double windowtext 2.25pt;padding:0in 0in 0in 0in;width:7.58%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">$0.64</font></p>
  </td>
  <td width="3%" valign="bottom" style="border:none;border-bottom:double windowtext 2.25pt;padding:0in 0in 0in 0in;width:3.86%;">
  <p style="margin:0in .25in .0001pt 0in;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
 </tr>
</table>

<p style="margin:0in 0in .0001pt;"><b><font size="5" face="Times New Roman" style="font-size:18.0pt;font-weight:bold;">&nbsp;</font></b></p>

<div style="margin:0in 0in .0001pt .25in;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">

<hr size="1" width="15%" noshade color="black" align="left">

</font></b></div>

<p style="margin:0in .25in .0001pt .5in;text-indent:-.25in;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">(1)</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font size="1" style="font-size:9.0pt;">The Series&nbsp;C Cumulative Convertible Preferred
Stock, the participating securities and the non-controlling interest have been
excluded from the computation of diluted net income per share as such inclusion
would be anti-dilutive.</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">18<a name="PB_18_234704_5335"></a></font></p>

<div style="margin:0in 0in .0001pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">

<hr size="3" width="100%" noshade color="#010101" align="left">

</font></b></div>

</div>
<!-- SEQ.=1,FOLIO='18',FILE='C:\JMS\105692\10-12718-1\task4210685\12718-1-ba-09.htm',USER='105692',CD='Jul 31 06:30 2010' -->


<br clear="all" style="page-break-before:always;">


<div style="font-family:Times New Roman;">

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><b><font size="3" face="Times New Roman" style="font-size:11.5pt;font-weight:bold;">LTC
PROPERTIES, INC.</font></b></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><b><font size="3" face="Times New Roman" style="font-size:11.5pt;font-weight:bold;">NOTES
TO CONSOLIDATED FINANCIAL STATEMENTS </font></b><b><font size="1" style="font-size:9.0pt;font-weight:bold;">CONTINUED</font></b></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><b><font size="3" face="Times New Roman" style="font-size:11.5pt;font-weight:bold;">(Unaudited)</font></b></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt .25in;text-indent:-.25in;"><b><font size="2" face="Times New Roman" style="font-size:11.0pt;font-weight:bold;">11.</font></b><b><font size="1" style="font-size:3.0pt;font-weight:bold;">&#160;&#160;&#160; </font></b><b><font size="2" style="font-size:11.0pt;font-weight:bold;">Fair Value Measurements</font></b></p>

<p style="margin:0in 0in .0001pt .25in;text-indent:-.25in;"><font size="2" face="Times New Roman" style="font-size:11.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:11.0pt;">In accordance with the
accounting guidance regarding the fair value option for financial assets and
financial liabilities, entities are permitted to choose to measure certain
financial assets and liabilities at fair value, with the change in unrealized
gains and losses on items for which the fair value option has been elected
reported in earnings.&#160; We did not adopt
the elective fair market value option in our financial statements.</font></p>

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:11.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:11.0pt;">The carrying amount of
cash and cash equivalents approximates fair value because of the short-term
maturity of these instruments.&#160; We do not
invest our cash in auction rate securities.&#160;
The carrying value and fair value of our financial instruments as of June&nbsp;30, 2010 and December&nbsp;31,
2009 assuming election of fair value for our financial assets and financial
liabilities were as follows:</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:11.0pt;">&nbsp;</font></p>

<div align="center">

<table border="0" cellspacing="0" cellpadding="0" width="80%" style="border-collapse:collapse;width:80.0%;">
 <tr>
  <td width="32%" valign="bottom" style="padding:0in 0in 0in 0in;width:32.56%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="3%" valign="bottom" style="padding:0in 0in 0in 0in;width:3.2%;">
  <p align="center" style="margin:0in 0in .0001pt;page-break-after:avoid;text-align:center;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="28%" colspan="5" valign="bottom" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0in 0in 0in 0in;width:28.96%;">
  <p align="center" style="margin:0in 0in .0001pt;page-break-after:avoid;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">At
  June&nbsp;30, 2010</font></p>
  </td>
  <td width="3%" valign="bottom" style="padding:0in 0in 0in 0in;width:3.2%;">
  <p align="center" style="margin:0in 0in .0001pt;page-break-after:avoid;text-align:center;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="28%" colspan="5" valign="bottom" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0in 0in 0in 0in;width:28.94%;">
  <p align="center" style="margin:0in 0in .0001pt;page-break-after:avoid;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">At
  December 31, 2009</font></p>
  </td>
  <td width="3%" valign="bottom" style="padding:0in 0in 0in 0in;width:3.12%;">
  <p align="center" style="margin:0in 0in .0001pt;page-break-after:avoid;text-align:center;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="32%" valign="bottom" style="padding:0in 0in 0in 0in;width:32.56%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="3%" valign="bottom" style="padding:0in 0in 0in 0in;width:3.2%;">
  <p align="center" style="margin:0in 0in .0001pt;page-break-after:avoid;text-align:center;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="12%" colspan="2" valign="bottom" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0in 0in 0in 0in;width:12.9%;">
  <p align="center" style="margin:0in 0in .0001pt;page-break-after:avoid;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Carrying<br>
  Value</font></p>
  </td>
  <td width="3%" valign="bottom" style="padding:0in 0in 0in 0in;width:3.2%;">
  <p align="center" style="margin:0in 0in .0001pt;page-break-after:avoid;text-align:center;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="12%" colspan="2" valign="bottom" style="border-bottom:solid windowtext 1.0pt;border-left:none;border-right:none;border-top:solid windowtext 1.0pt;padding:0in 0in 0in 0in;width:12.88%;">
  <p align="center" style="margin:0in 0in .0001pt;page-break-after:avoid;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Fair<br>
  Value</font></p>
  </td>
  <td width="3%" valign="bottom" style="padding:0in 0in 0in 0in;width:3.2%;">
  <p align="center" style="margin:0in 0in .0001pt;page-break-after:avoid;text-align:center;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="12%" colspan="2" valign="bottom" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0in 0in 0in 0in;width:12.86%;">
  <p align="center" style="margin:0in 0in .0001pt;page-break-after:avoid;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Carrying<br>
  Value</font></p>
  </td>
  <td width="3%" valign="bottom" style="padding:0in 0in 0in 0in;width:3.2%;">
  <p align="center" style="margin:0in 0in .0001pt;page-break-after:avoid;text-align:center;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="12%" colspan="2" valign="bottom" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0in 0in 0in 0in;width:12.88%;">
  <p align="center" style="margin:0in 0in .0001pt;page-break-after:avoid;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Fair<br>
  Value</font></p>
  </td>
  <td width="3%" valign="bottom" style="padding:0in 0in 0in 0in;width:3.12%;">
  <p align="center" style="margin:0in 0in .0001pt;page-break-after:avoid;text-align:center;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="32%" valign="bottom" style="padding:0in 0in 0in 0in;width:32.56%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Mortgage loans receivable</font></p>
  </td>
  <td width="3%" valign="bottom" style="padding:0in 0in 0in 0in;width:3.2%;">
  <p style="margin:0in 0in .0001pt;page-break-after:avoid;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="9%" valign="bottom" style="border:none;padding:0in 0in 0in 0in;width:9.98%;">
  <p align="right" style="margin:0in 0in .0001pt;page-break-after:avoid;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">$67,146</font></p>
  </td>
  <td width="2%" valign="bottom" style="border:none;border-top:solid windowtext 1.0pt;padding:0in 0in 0in 0in;width:2.92%;">
  <p align="right" style="margin:0in 0in .0001pt;page-break-after:avoid;text-align:right;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="3%" valign="bottom" style="padding:0in 0in 0in 0in;width:3.2%;">
  <p style="margin:0in 0in .0001pt;page-break-after:avoid;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="9%" valign="bottom" style="border:none;padding:0in 0in 0in 0in;width:9.9%;">
  <p align="right" style="margin:0in 0in .0001pt;page-break-after:avoid;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">$75,963</font></p>
  </td>
  <td width="2%" valign="bottom" style="border:none;border-top:solid windowtext 1.0pt;padding:0in 0in 0in 0in;width:2.98%;">
  <p style="margin:0in 0in .0001pt;page-break-after:avoid;"><font size="1" face="Times New Roman" style="font-size:6.5pt;position:relative;top:-3.0pt;">(1)</font></p>
  </td>
  <td width="3%" valign="bottom" style="padding:0in 0in 0in 0in;width:3.2%;">
  <p style="margin:0in 0in .0001pt;page-break-after:avoid;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="9%" valign="bottom" style="border:none;padding:0in 0in 0in 0in;width:9.9%;">
  <p align="right" style="margin:0in 0in .0001pt;page-break-after:avoid;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">$69,883</font></p>
  </td>
  <td width="2%" valign="bottom" style="border:none;border-top:solid windowtext 1.0pt;padding:0in 0in 0in 0in;width:2.96%;">
  <p align="right" style="margin:0in 0in .0001pt;page-break-after:avoid;text-align:right;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="3%" valign="bottom" style="padding:0in 0in 0in 0in;width:3.2%;">
  <p style="margin:0in 0in .0001pt;page-break-after:avoid;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="9%" valign="bottom" style="border:none;padding:0in 0in 0in 0in;width:9.98%;">
  <p align="right" style="margin:0in 0in .0001pt;page-break-after:avoid;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">$80,200</font></p>
  </td>
  <td width="2%" valign="bottom" style="border:none;border-top:solid windowtext 1.0pt;padding:0in 0in 0in 0in;width:2.9%;">
  <p style="margin:0in 0in .0001pt;page-break-after:avoid;"><font size="1" face="Times New Roman" style="font-size:6.5pt;position:relative;top:-3.0pt;">(1)</font></p>
  </td>
  <td width="3%" valign="bottom" style="padding:0in 0in 0in 0in;width:3.12%;">
  <p style="margin:0in 0in .0001pt;page-break-after:avoid;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="32%" valign="bottom" style="padding:0in 0in 0in 0in;width:32.56%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Marketable debt securities</font></p>
  </td>
  <td width="3%" valign="bottom" style="padding:0in 0in 0in 0in;width:3.2%;">
  <p style="margin:0in 0in .0001pt;page-break-after:avoid;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="9%" valign="bottom" style="padding:0in 0in 0in 0in;width:9.98%;">
  <p align="right" style="margin:0in 0in .0001pt;page-break-after:avoid;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">6,476</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.92%;">
  <p align="right" style="margin:0in 0in .0001pt;page-break-after:avoid;text-align:right;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="3%" valign="bottom" style="padding:0in 0in 0in 0in;width:3.2%;">
  <p style="margin:0in 0in .0001pt;page-break-after:avoid;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="9%" valign="bottom" style="padding:0in 0in 0in 0in;width:9.9%;">
  <p align="right" style="margin:0in 0in .0001pt;page-break-after:avoid;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">6,711</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.98%;">
  <p style="margin:0in 0in .0001pt;page-break-after:avoid;"><font size="1" face="Times New Roman" style="font-size:6.5pt;position:relative;top:-3.0pt;">(2)</font></p>
  </td>
  <td width="3%" valign="bottom" style="padding:0in 0in 0in 0in;width:3.2%;">
  <p style="margin:0in 0in .0001pt;page-break-after:avoid;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="9%" valign="bottom" style="padding:0in 0in 0in 0in;width:9.9%;">
  <p align="right" style="margin:0in 0in .0001pt;page-break-after:avoid;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">6,473</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.96%;">
  <p align="right" style="margin:0in 0in .0001pt;page-break-after:avoid;text-align:right;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="3%" valign="bottom" style="padding:0in 0in 0in 0in;width:3.2%;">
  <p style="margin:0in 0in .0001pt;page-break-after:avoid;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="9%" valign="bottom" style="padding:0in 0in 0in 0in;width:9.98%;">
  <p align="right" style="margin:0in 0in .0001pt;page-break-after:avoid;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">6,874</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.9%;">
  <p style="margin:0in 0in .0001pt;page-break-after:avoid;"><font size="1" face="Times New Roman" style="font-size:6.5pt;position:relative;top:-3.0pt;">(2)</font></p>
  </td>
  <td width="3%" valign="bottom" style="padding:0in 0in 0in 0in;width:3.12%;">
  <p style="margin:0in 0in .0001pt;page-break-after:avoid;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="32%" valign="bottom" style="padding:0in 0in 0in 0in;width:32.56%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Mortgage loans payable</font></p>
  </td>
  <td width="3%" valign="bottom" style="padding:0in 0in 0in 0in;width:3.2%;">
  <p style="margin:0in 0in .0001pt;page-break-after:avoid;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="9%" valign="bottom" style="padding:0in 0in 0in 0in;width:9.98%;">
  <p align="right" style="margin:0in 0in .0001pt;page-break-after:avoid;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#151;</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.92%;">
  <p align="right" style="margin:0in 0in .0001pt;page-break-after:avoid;text-align:right;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="3%" valign="bottom" style="padding:0in 0in 0in 0in;width:3.2%;">
  <p style="margin:0in 0in .0001pt;page-break-after:avoid;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="9%" valign="bottom" style="padding:0in 0in 0in 0in;width:9.9%;">
  <p align="right" style="margin:0in 0in .0001pt;page-break-after:avoid;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#151;</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.98%;">
  <p style="margin:0in 0in .0001pt;page-break-after:avoid;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="3%" valign="bottom" style="padding:0in 0in 0in 0in;width:3.2%;">
  <p style="margin:0in 0in .0001pt;page-break-after:avoid;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="9%" valign="bottom" style="padding:0in 0in 0in 0in;width:9.9%;">
  <p align="right" style="margin:0in 0in .0001pt;page-break-after:avoid;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">7,685</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.96%;">
  <p align="right" style="margin:0in 0in .0001pt;page-break-after:avoid;text-align:right;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="3%" valign="bottom" style="padding:0in 0in 0in 0in;width:3.2%;">
  <p style="margin:0in 0in .0001pt;page-break-after:avoid;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="9%" valign="bottom" style="padding:0in 0in 0in 0in;width:9.98%;">
  <p align="right" style="margin:0in 0in .0001pt;page-break-after:avoid;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">7,806</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.9%;">
  <p style="margin:0in 0in .0001pt;page-break-after:avoid;"><font size="1" face="Times New Roman" style="font-size:6.5pt;position:relative;top:-3.0pt;">(3)</font></p>
  </td>
  <td width="3%" valign="bottom" style="padding:0in 0in 0in 0in;width:3.12%;">
  <p style="margin:0in 0in .0001pt;page-break-after:avoid;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="32%" valign="bottom" style="padding:0in 0in 0in 0in;width:32.56%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Bonds payable</font></p>
  </td>
  <td width="3%" valign="bottom" style="padding:0in 0in 0in 0in;width:3.2%;">
  <p style="margin:0in 0in .0001pt;page-break-after:avoid;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="9%" valign="bottom" style="padding:0in 0in 0in 0in;width:9.98%;">
  <p align="right" style="margin:0in 0in .0001pt;page-break-after:avoid;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">3,730</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.92%;">
  <p align="right" style="margin:0in 0in .0001pt;page-break-after:avoid;text-align:right;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="3%" valign="bottom" style="padding:0in 0in 0in 0in;width:3.2%;">
  <p style="margin:0in 0in .0001pt;page-break-after:avoid;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="9%" valign="bottom" style="padding:0in 0in 0in 0in;width:9.9%;">
  <p align="right" style="margin:0in 0in .0001pt;page-break-after:avoid;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">3,730</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.98%;">
  <p style="margin:0in 0in .0001pt;page-break-after:avoid;"><font size="1" face="Times New Roman" style="font-size:6.5pt;position:relative;top:-3.0pt;">(4)</font></p>
  </td>
  <td width="3%" valign="bottom" style="padding:0in 0in 0in 0in;width:3.2%;">
  <p style="margin:0in 0in .0001pt;page-break-after:avoid;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="9%" valign="bottom" style="padding:0in 0in 0in 0in;width:9.9%;">
  <p align="right" style="margin:0in 0in .0001pt;page-break-after:avoid;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">4,225</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.96%;">
  <p align="right" style="margin:0in 0in .0001pt;page-break-after:avoid;text-align:right;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="3%" valign="bottom" style="padding:0in 0in 0in 0in;width:3.2%;">
  <p style="margin:0in 0in .0001pt;page-break-after:avoid;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="9%" valign="bottom" style="padding:0in 0in 0in 0in;width:9.98%;">
  <p align="right" style="margin:0in 0in .0001pt;page-break-after:avoid;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">4,225</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.9%;">
  <p style="margin:0in 0in .0001pt;page-break-after:avoid;"><font size="1" face="Times New Roman" style="font-size:6.5pt;position:relative;top:-3.0pt;">(4)</font></p>
  </td>
  <td width="3%" valign="bottom" style="padding:0in 0in 0in 0in;width:3.12%;">
  <p style="margin:0in 0in .0001pt;page-break-after:avoid;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="32%" valign="bottom" style="padding:0in 0in 0in 0in;width:32.56%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Bank borrowings</font></p>
  </td>
  <td width="3%" valign="bottom" style="padding:0in 0in 0in 0in;width:3.2%;">
  <p style="margin:0in 0in .0001pt;page-break-after:avoid;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="9%" valign="bottom" style="padding:0in 0in 0in 0in;width:9.98%;">
  <p align="right" style="margin:0in 0in .0001pt;page-break-after:avoid;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">41,000</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.92%;">
  <p align="right" style="margin:0in 0in .0001pt;page-break-after:avoid;text-align:right;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="3%" valign="bottom" style="padding:0in 0in 0in 0in;width:3.2%;">
  <p style="margin:0in 0in .0001pt;page-break-after:avoid;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="9%" valign="bottom" style="padding:0in 0in 0in 0in;width:9.9%;">
  <p align="right" style="margin:0in 0in .0001pt;page-break-after:avoid;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">41,000</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.98%;">
  <p style="margin:0in 0in .0001pt;page-break-after:avoid;"><font size="1" face="Times New Roman" style="font-size:6.5pt;position:relative;top:-3.0pt;">(4)</font></p>
  </td>
  <td width="3%" valign="bottom" style="padding:0in 0in 0in 0in;width:3.2%;">
  <p style="margin:0in 0in .0001pt;page-break-after:avoid;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="9%" valign="bottom" style="padding:0in 0in 0in 0in;width:9.9%;">
  <p align="right" style="margin:0in 0in .0001pt;page-break-after:avoid;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">13,500</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.96%;">
  <p align="right" style="margin:0in 0in .0001pt;page-break-after:avoid;text-align:right;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="3%" valign="bottom" style="padding:0in 0in 0in 0in;width:3.2%;">
  <p style="margin:0in 0in .0001pt;page-break-after:avoid;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="9%" valign="bottom" style="padding:0in 0in 0in 0in;width:9.98%;">
  <p align="right" style="margin:0in 0in .0001pt;page-break-after:avoid;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">13,500</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.9%;">
  <p style="margin:0in 0in .0001pt;page-break-after:avoid;"><font size="1" face="Times New Roman" style="font-size:6.5pt;position:relative;top:-3.0pt;">(4)</font></p>
  </td>
  <td width="3%" valign="bottom" style="padding:0in 0in 0in 0in;width:3.12%;">
  <p style="margin:0in 0in .0001pt;page-break-after:avoid;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
 </tr>
</table>

</div>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<div style="margin:0in 0in .0001pt .75in;text-indent:-.25in;"><hr size="1" width="15%" noshade color="black" align="left"></div>

<p style="margin:0in 0in .0001pt .8in;text-indent:-.3in;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">(1)</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font size="1" style="font-size:9.0pt;">Our investment in mortgage loans receivable is
classified as Level 3.&#160; The fair value is
determined using a widely accepted valuation technique, discounted cash flow
analysis on the expected cash flows.&#160; The
discount rate is determined using our assumption on market conditions adjusted
for market and credit risk and current returns on our investments.&#160; The discount rate used to value our future
cash inflows of the mortgage loans receivable as June&nbsp;30, 2010 and December&nbsp;31,
2009 was 7.5%.</font></p>

<p style="margin:0in 0in .0001pt .8in;text-indent:-.3in;"><font size="1" face="Times New Roman" style="font-size:4.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt .8in;text-indent:-.3in;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">(2)</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font size="1" style="font-size:9.0pt;">Our investment in marketable debt securities is
classified as Level 2.&#160; The fair value is
measured using quoted market rates based on most recent transactions from an
independent third party source.&#160; The
pricing of our marketable debt securities at June&nbsp;30, 2010 and December&nbsp;31,
2009 was 103.25% and 105.75%, respectively.&#160;
Subsequent to June&nbsp;30, 2010, SHG reported a Humboldt County,
California, jury returned a verdict against SHG.&#160; See <i>Note 4. Marketable
Securities</i> for further discussion.&#160;
As a result of this verdict, the pricing of our marketable debt
securities decreased to 88% or $5,720,000 as of July&nbsp;26, 2010.</font></p>

<p style="margin:0in 0in .0001pt .8in;text-indent:-.3in;"><font size="1" face="Times New Roman" style="font-size:4.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt .8in;text-indent:-.3in;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">(3)</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font size="1" style="font-size:9.0pt;">Our obligation under our mortgage loans payable is
classified as Level 3 and thus the fair value is determined using a widely
accepted valuation technique, discounted cash flow analysis on the expected
cash flows.&#160; The discount rate is
measured based upon management&#146;s estimates of rates currently prevailing for
comparable loans available to us, and instruments of comparable
maturities.&#160; At December&nbsp;31, 2009,
the discount rate used to value our future cash outflow of our mortgage loans
payable was 6.25%.</font></p>

<p style="margin:0in 0in .0001pt .8in;text-indent:-.3in;"><font size="1" face="Times New Roman" style="font-size:4.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt .8in;text-indent:-.3in;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">(4)</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font size="1" style="font-size:9.0pt;">Our bonds payable and bank borrowings are at a variable
interest rate.&#160; The estimated fair value
of our bonds payable approximated their carrying values at June&nbsp;30, 2010
and December&nbsp;31, 2009 based upon prevailing market interest rates for
similar debt arrangements.</font></p>

<p style="margin:0in 0in .0001pt .75in;text-indent:-.25in;"><font size="2" face="Times New Roman" style="font-size:11.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt .25in;text-indent:-.25in;"><b><font size="2" face="Times New Roman" style="font-size:11.0pt;font-weight:bold;">12.</font></b><b><font size="1" style="font-size:3.0pt;font-weight:bold;">&#160;&#160;&#160; </font></b><b><font size="2" style="font-size:11.0pt;font-weight:bold;">Subsequent Events</font></b></p>

<p style="margin:0in 0in .0001pt .25in;text-indent:-.25in;"><font size="2" face="Times New Roman" style="font-size:11.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:11.0pt;">Subsequent to
June&nbsp;30, 2010 the following events occurred.</font></p>

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:11.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:11.0pt;">We declared a monthly
cash dividend of $0.13 per common share per month for the months of July, August&nbsp;and
September&nbsp;2010, payable on July&nbsp;30, August&nbsp;31 and September&nbsp;30,
2010, respectively, to stockholders of record on July&nbsp;22, August&nbsp;23
and September&nbsp;22, 2010, respectively.</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">19<a name="PB_19_000335_5796"></a></font></p>

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<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><b><font size="3" face="Times New Roman" style="font-size:11.5pt;font-weight:bold;">LTC
PROPERTIES, INC.</font></b></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><b><font size="3" face="Times New Roman" style="font-size:11.5pt;font-weight:bold;">NOTES
TO CONSOLIDATED FINANCIAL STATEMENTS </font></b><b><font size="1" style="font-size:9.0pt;font-weight:bold;">CONTINUED</font></b></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><b><font size="3" face="Times New Roman" style="font-size:11.5pt;font-weight:bold;">(Unaudited)</font></b></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:11.0pt;">We funded an additional
$146,000 under a $2,500,000 capital improvement commitment we provided to a
lessee for a skilled nursing property they lease from us.&#160; The commitment includes interest compounded
at 10% on each advance made from each disbursement date until final
distribution of the commitment.&#160; Upon the
earlier of September&nbsp;30, 2010 or final distribution, the minimum rent will
increase by an amount equal to the capital allowance funded plus compounded
interest multiplied by 10%.&#160; After this
funding, we have an open commitment of $744,000 under this agreement.</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:11.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:11.0pt;">We agreed to a $150,000
capital improvement commitment with a lease for a property with 72 skilled
nursing beds and 16 assisted living units that they lease from us.&#160; The commitment includes interest compounded
at 10% on each advance made from each disbursement date until final
distribution of the commitment.&#160; Upon the
earlier of the improvement deadline of December&nbsp;31, 2010 or the final
advance, the minimum rent will increase by an amount equal to the capital
allowance funded plus compounded interest multiplied by 10%.&#160; No funds have been requested under this
agreement.</font></p>

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:11.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:11.0pt;">A lessee notified us of
its intent to exercise its option to purchase a 195-bed skilled nursing
property located in Virginia on November&nbsp;1, 2010.&#160; The carrying value of this property as of June&nbsp;30,
2010 was $4,398,000 and the annual revenue from this property is $471,000. &#160;At this time, we anticipate an immaterial net
gain from this sale.</font></p>

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:11.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:11.0pt;">We funded an additional
$100,000 under a $250,000 loan commitment we provided to a lessee of three
assisted living properties. The total funded under this commitment is $250,000.
The loan has an interest rate of 9% and matures on November&nbsp;30, 2011.</font></p>

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:11.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:11.0pt;">We invested $1,622,000,
before closing fees of $64,000, in a mortgage loan secured by a skilled nursing
property located in Missouri to finance an expansion of the property and extend
the loan maturity for an additional five years to January&nbsp;2018.&#160; The current interest rate is 10.9%,
increasing 0.13% annually.</font></p>

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:11.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:11.0pt;">We completed the sale to
affiliates and managed accounts of Prudential Investment Management,&nbsp;Inc.
(individually and collectively &#147;Prudential&#148;) of $25,000,000 aggregate principal
amount of 5.26% senior unsecured term notes due July&nbsp;14, 2015 and
$25,000,000 aggregate principal amount of 5.74% senior unsecured term notes due
January&nbsp;14, 2019.&#160; Also, we entered
into an uncommitted private shelf agreement with Prudential which provides for
the possible issuance of up to an additional $50,000,000 of senior unsecured
fixed-rate term notes during the three-year issuance period.</font></p>

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:11.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:11.0pt;">We repaid $41,000,000
under our Unsecured Credit Agreement using proceeds from the sale of the
Prudential senior unsecured notes.&#160; After
this repayment we have no outstanding balance under our Unsecured Credit
Agreement and $110,000,000 available for borrowing.</font></p>

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:11.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:11.0pt;">On July&nbsp;7,
2010, SHG reported that a Humboldt County, California, jury returned a verdict
against SHG related to a complaint filed on May&nbsp;4, 2006.&#160; The jury awarded the plaintiffs $613,000,000
in statutory damages and $58,000,000 in restitutionary damages.&#160; The plaintiffs alleged that certain
California-based facilities operated by SHG&#146;s wholly owned operating companies
failed to provide an adequate number of qualified personnel to care for their
residents and misrepresented the quality of care provided in their
facilities.&#160; SHG has stated publicly that
it believes the company is appropriately staffed and its caregivers work
diligently every day to provide the care and services its residents need and
deserve.&#160; SHG also announced that it has
agreed with the plaintiffs to enter into mediation.&#160; As part of the agreement, the plaintiffs will
not move to collect on their verdict against SHG, and, in return, SHG will not
transfer or impair any assets. At June&nbsp;30, 2010, we had an investment in
$6,500,000 face value of SHG Senior Subordinated Notes with a face rate of
11.0% and an effective yield of 11.1%.&#160;
Interest on the notes is payable semi-annually in arrears and the notes
mature on January&nbsp;15, 2014.&#160;
Subsequent to June&nbsp;30, 2010, we received the semi-annual interest
on the notes as scheduled.&#160; See <i>Note 4. Marketable Securities</i> for further discussion.&#160; One of our board members is the chief
executive officer of SHG.&#160; See <i>Note 9. Transactions with Related Party</i> for further
discussion.</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">20<a name="PB_20_000501_2897"></a></font></p>

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<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><b><font size="3" face="Times New Roman" style="font-size:11.5pt;font-weight:bold;">LTC
PROPERTIES, INC.</font></b></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><b><font size="3" face="Times New Roman" style="font-size:11.5pt;font-weight:bold;">NOTES
TO CONSOLIDATED FINANCIAL STATEMENTS </font></b><b><font size="1" style="font-size:9.0pt;font-weight:bold;">CONTINUED</font></b></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><b><font size="3" face="Times New Roman" style="font-size:11.5pt;font-weight:bold;">(Unaudited)</font></b></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:11.0pt;">Accounting
Standards Codification No.&nbsp;320,&nbsp;<i>Investments&#151;Debt
and Equity Securities </i>(or ASC 320), requires an entity to assess
whether it intends to sell, or it is more likely than not that it will be
required to sell, a debt security in an unrealized loss position before
recovery of its amortized cost basis. If either of these criteria is met, the
entire difference between fair value and amortized cost is recognized as
impairment through earnings. For securities that do not meet the aforementioned
criteria, the amount of impairment is split into two components as follows: 1)
other-than-temporary impairment (or OTTI) related to other factors such as SHG&#146;s
ability to make scheduled interest or principal payments on the debt
securities, which is recognized in other comprehensive income and 2) OTTI
related to credit loss, which must be recognized in the income statement. The
credit loss is determined as the difference between the present value of the
cash flows expected to be collected and the amortized cost basis.</font></p>

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:11.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:11.0pt;">As a result of the
verdict against SHG, the fair value of our SHG Senior Subordinated Notes has
decreased below amortized cost basis which we believe to be temporary based on
the facts available to us.&#160; We do not
intend to sell the debt securities and currently we have concluded that it is
not &#147;more likely than not&#148; that we will be required to sell these securities
before the anticipated recovery of the remaining amortized cost basis.&#160; We will continue to evaluate our debt
securities for OTTI as the mediation between SHG and the plaintiffs progresses.</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">21<a name="PB_21_000636_3020"></a></font></p>

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<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt 1.0in;text-indent:-1.0in;"><b><font size="2" face="Times New Roman" style="font-size:11.0pt;font-weight:bold;">Item 2.&nbsp;&nbsp;&nbsp;&nbsp;MANAGEMENT&#146;S
DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS</font></b><a name="ConditionAndResultsOfOperations_231014"></a></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;"><b><font size="2" face="Times New Roman" style="font-size:11.0pt;font-weight:bold;">Executive
Overview</font></b></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:11.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;"><b><i><font size="2" face="Times New Roman" style="font-size:11.0pt;font-style:italic;font-weight:bold;">Business</font></i></b></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:11.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:11.0pt;">We are a
self-administered health care real estate investment trust (or REIT) that
invests primarily in senior housing and long term healthcare properties through
mortgage loans, property lease transactions and other investments.&#160; Our primary senior housing and long term
healthcare property types include skilled nursing properties (or SNF), assisted
living properties (or ALF), independent living properties (or ILF) and
combinations thereof.&#160; In the second
quarter of 2010, senior housing and long term healthcare properties comprised
of approximately 98% of our investment portfolio.&#160; We have been operating since August 1992.</font></p>

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:11.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:11.0pt;">The following
table summarizes our &#147;direct real estate investment portfolio&#148; (properties that
we own or on which we hold promissory notes secured by first mortgages) as of June
30, 2010 <i>(dollar amounts in thousands):</i></font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<table border="0" cellspacing="0" cellpadding="0" width="100%" style="border-collapse:collapse;width:100.0%;">
 <tr>
  <td width="11%" valign="bottom" style="padding:0in 0in 0in 0in;width:11.12%;">
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="1%" valign="bottom" style="padding:0in 0in 0in 0in;width:1.02%;">
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="8%" colspan="2" valign="bottom" style="padding:0in 0in 0in 0in;width:8.14%;">
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="1%" valign="bottom" style="padding:0in 0in 0in 0in;width:1.02%;">
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="9%" colspan="2" valign="bottom" style="padding:0in 0in 0in 0in;width:9.28%;">
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="1%" valign="bottom" style="padding:0in 0in 0in 0in;width:1.02%;">
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="16%" colspan="5" valign="bottom" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0in 0in 0in 0in;width:16.44%;">
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="1" face="Times New Roman" style="font-size:8.0pt;">Six&nbsp;Months&nbsp;Ended<br>
  June&nbsp;30,&nbsp;2010</font></p>
  </td>
  <td width="1%" valign="bottom" style="padding:0in 0in 0in 0in;width:1.02%;">
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="7%" colspan="2" valign="bottom" style="padding:0in 0in 0in 0in;width:7.72%;">
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="1" face="Times New Roman" style="font-size:8.0pt;">Percentage</font></p>
  </td>
  <td width="1%" valign="bottom" style="padding:0in 0in 0in 0in;width:1.02%;">
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="7%" colspan="2" valign="bottom" style="padding:0in 0in 0in 0in;width:7.72%;">
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="1" face="Times New Roman" style="font-size:8.0pt;">Number</font></p>
  </td>
  <td width="1%" valign="bottom" style="padding:0in 0in 0in 0in;width:1.02%;">
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="25%" colspan="8" valign="bottom" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0in 0in 0in 0in;width:25.18%;">
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="1" face="Times New Roman" style="font-size:8.0pt;">Number&nbsp;of&nbsp;</font></p>
  </td>
  <td width="1%" valign="bottom" style="padding:0in 0in 0in 0in;width:1.04%;">
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="7%" colspan="2" valign="bottom" style="padding:0in 0in 0in 0in;width:7.28%;">
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="1" face="Times New Roman" style="font-size:8.0pt;">Investment</font></p>
  </td>
 </tr>
 <tr>
  <td width="11%" valign="bottom" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0in 0in 0in 0in;width:11.12%;">
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="1" face="Times New Roman" style="font-size:8.0pt;">Type&nbsp;of<br>
  Property</font></p>
  </td>
  <td width="1%" valign="bottom" style="padding:0in 0in 0in 0in;width:1.02%;">
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="8%" colspan="2" valign="bottom" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0in 0in 0in 0in;width:8.14%;">
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="1" face="Times New Roman" style="font-size:8.0pt;">Gross<br>
  Investments</font></p>
  </td>
  <td width="1%" valign="bottom" style="padding:0in 0in 0in 0in;width:1.02%;">
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="9%" colspan="2" valign="bottom" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0in 0in 0in 0in;width:9.28%;">
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="1" face="Times New Roman" style="font-size:8.0pt;">Percentage&nbsp;of<br>
  Investments</font></p>
  </td>
  <td width="1%" valign="bottom" style="padding:0in 0in 0in 0in;width:1.02%;">
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="7%" colspan="2" valign="bottom" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0in 0in 0in 0in;width:7.7%;">
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="1" face="Times New Roman" style="font-size:8.0pt;">Rental<br>
  Income</font></p>
  </td>
  <td width="1%" valign="bottom" style="border:none;border-top:solid windowtext 1.0pt;padding:0in 0in 0in 0in;width:1.02%;">
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="7%" colspan="2" valign="bottom" style="border-bottom:solid windowtext 1.0pt;border-left:none;border-right:none;border-top:solid windowtext 1.0pt;padding:0in 0in 0in 0in;width:7.72%;">
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="1" face="Times New Roman" style="font-size:8.0pt;">Interest<br>
  Income&nbsp;</font><font size="1" style="font-size:5.0pt;position:relative;top:-2.0pt;">(2)</font></p>
  </td>
  <td width="1%" valign="bottom" style="padding:0in 0in 0in 0in;width:1.02%;">
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="7%" colspan="2" valign="bottom" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0in 0in 0in 0in;width:7.72%;">
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="1" face="Times New Roman" style="font-size:8.0pt;">of&nbsp;<br>
  Revenues&nbsp;</font><font size="1" style="font-size:5.0pt;position:relative;top:-2.0pt;">(3)</font></p>
  </td>
  <td width="1%" valign="bottom" style="padding:0in 0in 0in 0in;width:1.02%;">
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="7%" colspan="2" valign="bottom" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0in 0in 0in 0in;width:7.72%;">
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="1" face="Times New Roman" style="font-size:8.0pt;">of<br>
  Properties&nbsp;</font><font size="1" style="font-size:5.0pt;position:relative;top:-2.0pt;">(4)</font></p>
  </td>
  <td width="1%" valign="bottom" style="padding:0in 0in 0in 0in;width:1.02%;">
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="7%" colspan="2" valign="bottom" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0in 0in 0in 0in;width:7.7%;">
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="1" face="Times New Roman" style="font-size:8.0pt;">SNF<br>
  Beds</font></p>
  </td>
  <td width="1%" valign="bottom" style="border:none;border-top:solid windowtext 1.0pt;padding:0in 0in 0in 0in;width:1.02%;">
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="7%" colspan="2" valign="bottom" style="border-bottom:solid windowtext 1.0pt;border-left:none;border-right:none;border-top:solid windowtext 1.0pt;padding:0in 0in 0in 0in;width:7.7%;">
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="1" face="Times New Roman" style="font-size:8.0pt;">ALF<br>
  Units</font></p>
  </td>
  <td width="1%" valign="bottom" style="border:none;border-top:solid windowtext 1.0pt;padding:0in 0in 0in 0in;width:1.04%;">
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="7%" colspan="2" valign="bottom" style="border-bottom:solid windowtext 1.0pt;border-left:none;border-right:none;border-top:solid windowtext 1.0pt;padding:0in 0in 0in 0in;width:7.72%;">
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="1" face="Times New Roman" style="font-size:8.0pt;">ILF<br>
  Units</font></p>
  </td>
  <td width="1%" valign="bottom" style="padding:0in 0in 0in 0in;width:1.04%;">
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="7%" colspan="2" valign="bottom" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0in 0in 0in 0in;width:7.28%;">
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="1" face="Times New Roman" style="font-size:8.0pt;">per<br>
  Bed/Unit</font></p>
  </td>
 </tr>
 <tr>
  <td width="11%" valign="top" style="border:none;padding:0in 0in 0in 0in;width:11.12%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:8.0pt;">Assisted <br>
  Living <br>
  Properties</font></p>
  </td>
  <td width="1%" valign="bottom" style="padding:0in 0in 0in 0in;width:1.02%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="6%" valign="bottom" style="border:none;padding:0in 0in 0in 0in;width:6.36%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="1" face="Times New Roman" style="font-size:8.0pt;">$281,575</font></p>
  </td>
  <td width="1%" valign="bottom" style="border:none;border-top:solid windowtext 1.0pt;padding:0in 0in 0in 0in;width:1.76%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="1%" valign="bottom" style="padding:0in 0in 0in 0in;width:1.02%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="6%" valign="bottom" style="border:none;padding:0in 0in 0in 0in;width:6.44%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="1" face="Times New Roman" style="font-size:8.0pt;">44.8%</font></p>
  </td>
  <td width="2%" valign="bottom" style="border:none;border-top:solid windowtext 1.0pt;padding:0in 0in 0in 0in;width:2.84%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="1%" valign="bottom" style="padding:0in 0in 0in 0in;width:1.02%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="5%" valign="bottom" style="border:none;padding:0in 0in 0in 0in;width:5.88%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="1" face="Times New Roman" style="font-size:8.0pt;">$14,935</font></p>
  </td>
  <td width="1%" valign="bottom" style="border:none;border-top:solid windowtext 1.0pt;padding:0in 0in 0in 0in;width:1.82%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="1%" valign="bottom" style="padding:0in 0in 0in 0in;width:1.02%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="5%" valign="bottom" style="border:none;padding:0in 0in 0in 0in;width:5.34%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="1" face="Times New Roman" style="font-size:8.0pt;">$1,407</font></p>
  </td>
  <td width="2%" valign="bottom" style="border:none;border-top:solid windowtext 1.0pt;padding:0in 0in 0in 0in;width:2.38%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="1%" valign="bottom" style="padding:0in 0in 0in 0in;width:1.02%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="5%" valign="bottom" style="border:none;padding:0in 0in 0in 0in;width:5.6%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="1" face="Times New Roman" style="font-size:8.0pt;">46.1%</font></p>
  </td>
  <td width="2%" valign="bottom" style="border:none;border-top:solid windowtext 1.0pt;padding:0in 0in 0in 0in;width:2.12%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="1%" valign="bottom" style="padding:0in 0in 0in 0in;width:1.02%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="5%" valign="bottom" style="border:none;padding:0in 0in 0in 0in;width:5.18%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="1" face="Times New Roman" style="font-size:8.0pt;">99</font></p>
  </td>
  <td width="2%" valign="bottom" style="border:none;border-top:solid windowtext 1.0pt;padding:0in 0in 0in 0in;width:2.54%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="1%" valign="bottom" style="padding:0in 0in 0in 0in;width:1.02%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="6%" valign="bottom" style="border:none;padding:0in 0in 0in 0in;width:6.0%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="1" face="Times New Roman" style="font-size:8.0pt;">&#151;</font></p>
  </td>
  <td width="1%" valign="bottom" style="border:none;border-top:solid windowtext 1.0pt;padding:0in 0in 0in 0in;width:1.7%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="1%" valign="bottom" style="padding:0in 0in 0in 0in;width:1.02%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="5%" valign="bottom" style="border:none;padding:0in 0in 0in 0in;width:5.26%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="1" face="Times New Roman" style="font-size:8.0pt;">4,289</font></p>
  </td>
  <td width="2%" valign="bottom" style="border:none;border-top:solid windowtext 1.0pt;padding:0in 0in 0in 0in;width:2.44%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="1%" valign="bottom" style="padding:0in 0in 0in 0in;width:1.04%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="4%" valign="bottom" style="border:none;padding:0in 0in 0in 0in;width:4.92%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="1" face="Times New Roman" style="font-size:8.0pt;">&#151;</font></p>
  </td>
  <td width="2%" valign="bottom" style="border:none;border-top:solid windowtext 1.0pt;padding:0in 0in 0in 0in;width:2.78%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="1%" valign="bottom" style="padding:0in 0in 0in 0in;width:1.04%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="5%" valign="bottom" style="border:none;padding:0in 0in 0in 0in;width:5.38%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="1" face="Times New Roman" style="font-size:8.0pt;">$65.65</font></p>
  </td>
  <td width="1%" valign="bottom" style="border:none;border-top:solid windowtext 1.0pt;padding:0in 0in 0in 0in;width:1.88%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="11%" valign="top" bgcolor="#CCFFFF" style="background:#CCFFFF;padding:0in 0in 0in 0in;width:11.12%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:8.0pt;">Skilled <br>
  Nursing <br>
  Properties</font></p>
  </td>
  <td width="1%" valign="bottom" bgcolor="#CCFFFF" style="background:#CCFFFF;padding:0in 0in 0in 0in;width:1.02%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="6%" valign="bottom" bgcolor="#CCFFFF" style="background:#CCFFFF;padding:0in 0in 0in 0in;width:6.36%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="1" face="Times New Roman" style="font-size:8.0pt;">279,098</font></p>
  </td>
  <td width="1%" valign="bottom" bgcolor="#CCFFFF" style="background:#CCFFFF;padding:0in 0in 0in 0in;width:1.76%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="1%" valign="bottom" bgcolor="#CCFFFF" style="background:#CCFFFF;padding:0in 0in 0in 0in;width:1.02%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="6%" valign="bottom" bgcolor="#CCFFFF" style="background:#CCFFFF;padding:0in 0in 0in 0in;width:6.44%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="1" face="Times New Roman" style="font-size:8.0pt;">44.4%</font></p>
  </td>
  <td width="2%" valign="bottom" bgcolor="#CCFFFF" style="background:#CCFFFF;padding:0in 0in 0in 0in;width:2.84%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="1%" valign="bottom" bgcolor="#CCFFFF" style="background:#CCFFFF;padding:0in 0in 0in 0in;width:1.02%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="5%" valign="bottom" bgcolor="#CCFFFF" style="background:#CCFFFF;padding:0in 0in 0in 0in;width:5.88%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="1" face="Times New Roman" style="font-size:8.0pt;">14,043</font></p>
  </td>
  <td width="1%" valign="bottom" bgcolor="#CCFFFF" style="background:#CCFFFF;padding:0in 0in 0in 0in;width:1.82%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="1%" valign="bottom" bgcolor="#CCFFFF" style="background:#CCFFFF;padding:0in 0in 0in 0in;width:1.02%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="5%" valign="bottom" bgcolor="#CCFFFF" style="background:#CCFFFF;padding:0in 0in 0in 0in;width:5.34%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="1" face="Times New Roman" style="font-size:8.0pt;">2,134</font></p>
  </td>
  <td width="2%" valign="bottom" bgcolor="#CCFFFF" style="background:#CCFFFF;padding:0in 0in 0in 0in;width:2.38%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="1%" valign="bottom" bgcolor="#CCFFFF" style="background:#CCFFFF;padding:0in 0in 0in 0in;width:1.02%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="5%" valign="bottom" bgcolor="#CCFFFF" style="background:#CCFFFF;padding:0in 0in 0in 0in;width:5.6%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="1" face="Times New Roman" style="font-size:8.0pt;">45.6%</font></p>
  </td>
  <td width="2%" valign="bottom" bgcolor="#CCFFFF" style="background:#CCFFFF;padding:0in 0in 0in 0in;width:2.12%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="1%" valign="bottom" bgcolor="#CCFFFF" style="background:#CCFFFF;padding:0in 0in 0in 0in;width:1.02%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="5%" valign="bottom" bgcolor="#CCFFFF" style="background:#CCFFFF;padding:0in 0in 0in 0in;width:5.18%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="1" face="Times New Roman" style="font-size:8.0pt;">95</font></p>
  </td>
  <td width="2%" valign="bottom" bgcolor="#CCFFFF" style="background:#CCFFFF;padding:0in 0in 0in 0in;width:2.54%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="1%" valign="bottom" bgcolor="#CCFFFF" style="background:#CCFFFF;padding:0in 0in 0in 0in;width:1.02%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="6%" valign="bottom" bgcolor="#CCFFFF" style="background:#CCFFFF;padding:0in 0in 0in 0in;width:6.0%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="1" face="Times New Roman" style="font-size:8.0pt;">10,919</font></p>
  </td>
  <td width="1%" valign="bottom" bgcolor="#CCFFFF" style="background:#CCFFFF;padding:0in 0in 0in 0in;width:1.7%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="1%" valign="bottom" bgcolor="#CCFFFF" style="background:#CCFFFF;padding:0in 0in 0in 0in;width:1.02%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="5%" valign="bottom" bgcolor="#CCFFFF" style="background:#CCFFFF;padding:0in 0in 0in 0in;width:5.26%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="1" face="Times New Roman" style="font-size:8.0pt;">&#151;</font></p>
  </td>
  <td width="2%" valign="bottom" bgcolor="#CCFFFF" style="background:#CCFFFF;padding:0in 0in 0in 0in;width:2.44%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="1%" valign="bottom" bgcolor="#CCFFFF" style="background:#CCFFFF;padding:0in 0in 0in 0in;width:1.04%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="4%" valign="bottom" bgcolor="#CCFFFF" style="background:#CCFFFF;padding:0in 0in 0in 0in;width:4.92%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="1" face="Times New Roman" style="font-size:8.0pt;">&#151;</font></p>
  </td>
  <td width="2%" valign="bottom" bgcolor="#CCFFFF" style="background:#CCFFFF;padding:0in 0in 0in 0in;width:2.78%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="1%" valign="bottom" bgcolor="#CCFFFF" style="background:#CCFFFF;padding:0in 0in 0in 0in;width:1.04%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="5%" valign="bottom" bgcolor="#CCFFFF" style="background:#CCFFFF;padding:0in 0in 0in 0in;width:5.38%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="1" face="Times New Roman" style="font-size:8.0pt;">25.56</font></p>
  </td>
  <td width="1%" valign="bottom" bgcolor="#CCFFFF" style="background:#CCFFFF;padding:0in 0in 0in 0in;width:1.88%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="11%" valign="top" style="padding:0in 0in 0in 0in;width:11.12%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:8.0pt;">Other <br>
  Properties<font style="position:relative;top:-2.0pt;">  </font></font><font size="1" style="font-size:5.0pt;position:relative;top:-2.0pt;">(1)</font></p>
  </td>
  <td width="1%" valign="bottom" style="padding:0in 0in 0in 0in;width:1.02%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="6%" valign="bottom" style="padding:0in 0in 0in 0in;width:6.36%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="1" face="Times New Roman" style="font-size:8.0pt;">55,205</font></p>
  </td>
  <td width="1%" valign="bottom" style="padding:0in 0in 0in 0in;width:1.76%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="1%" valign="bottom" style="padding:0in 0in 0in 0in;width:1.02%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="6%" valign="bottom" style="padding:0in 0in 0in 0in;width:6.44%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="1" face="Times New Roman" style="font-size:8.0pt;">8.8%</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.84%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="1%" valign="bottom" style="padding:0in 0in 0in 0in;width:1.02%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="5%" valign="bottom" style="padding:0in 0in 0in 0in;width:5.88%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="1" face="Times New Roman" style="font-size:8.0pt;">2,081</font></p>
  </td>
  <td width="1%" valign="bottom" style="padding:0in 0in 0in 0in;width:1.82%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="1%" valign="bottom" style="padding:0in 0in 0in 0in;width:1.02%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="5%" valign="bottom" style="padding:0in 0in 0in 0in;width:5.34%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="1" face="Times New Roman" style="font-size:8.0pt;">197</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.38%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="1%" valign="bottom" style="padding:0in 0in 0in 0in;width:1.02%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="5%" valign="bottom" style="padding:0in 0in 0in 0in;width:5.6%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="1" face="Times New Roman" style="font-size:8.0pt;">6.4%</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.12%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="1%" valign="bottom" style="padding:0in 0in 0in 0in;width:1.02%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="5%" valign="bottom" style="padding:0in 0in 0in 0in;width:5.18%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="1" face="Times New Roman" style="font-size:8.0pt;">12</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.54%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="1%" valign="bottom" style="padding:0in 0in 0in 0in;width:1.02%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="6%" valign="bottom" style="padding:0in 0in 0in 0in;width:6.0%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="1" face="Times New Roman" style="font-size:8.0pt;">795</font></p>
  </td>
  <td width="1%" valign="bottom" style="padding:0in 0in 0in 0in;width:1.7%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="1%" valign="bottom" style="padding:0in 0in 0in 0in;width:1.02%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="5%" valign="bottom" style="padding:0in 0in 0in 0in;width:5.26%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="1" face="Times New Roman" style="font-size:8.0pt;">290</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.44%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="1%" valign="bottom" style="padding:0in 0in 0in 0in;width:1.04%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="4%" valign="bottom" style="padding:0in 0in 0in 0in;width:4.92%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="1" face="Times New Roman" style="font-size:8.0pt;">370</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.78%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="1%" valign="bottom" style="padding:0in 0in 0in 0in;width:1.04%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="5%" valign="bottom" style="padding:0in 0in 0in 0in;width:5.38%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="1" face="Times New Roman" style="font-size:8.0pt;">37.94</font></p>
  </td>
  <td width="1%" valign="bottom" style="padding:0in 0in 0in 0in;width:1.88%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="11%" valign="top" bgcolor="#CCFFFF" style="background:#CCFFFF;padding:0in 0in 0in 0in;width:11.12%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:8.0pt;">Schools</font></p>
  </td>
  <td width="1%" valign="bottom" bgcolor="#CCFFFF" style="background:#CCFFFF;padding:0in 0in 0in 0in;width:1.02%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="6%" valign="bottom" bgcolor="#CCFFFF" style="background:#CCFFFF;border:none;border-bottom:solid windowtext 1.0pt;padding:0in 0in 0in 0in;width:6.36%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="1" face="Times New Roman" style="font-size:8.0pt;">13,020</font></p>
  </td>
  <td width="1%" valign="bottom" bgcolor="#CCFFFF" style="background:#CCFFFF;border:none;border-bottom:solid windowtext 1.0pt;padding:0in 0in 0in 0in;width:1.76%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="1%" valign="bottom" bgcolor="#CCFFFF" style="background:#CCFFFF;padding:0in 0in 0in 0in;width:1.02%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="6%" valign="bottom" bgcolor="#CCFFFF" style="background:#CCFFFF;border:none;border-bottom:solid windowtext 1.0pt;padding:0in 0in 0in 0in;width:6.44%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="1" face="Times New Roman" style="font-size:8.0pt;">2.0%</font></p>
  </td>
  <td width="2%" valign="bottom" bgcolor="#CCFFFF" style="background:#CCFFFF;border:none;border-bottom:solid windowtext 1.0pt;padding:0in 0in 0in 0in;width:2.84%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="1%" valign="bottom" bgcolor="#CCFFFF" style="background:#CCFFFF;padding:0in 0in 0in 0in;width:1.02%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="5%" valign="bottom" bgcolor="#CCFFFF" style="background:#CCFFFF;border:none;border-bottom:solid windowtext 1.0pt;padding:0in 0in 0in 0in;width:5.88%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="1" face="Times New Roman" style="font-size:8.0pt;">601</font></p>
  </td>
  <td width="1%" valign="bottom" bgcolor="#CCFFFF" style="background:#CCFFFF;border:none;border-bottom:solid windowtext 1.0pt;padding:0in 0in 0in 0in;width:1.82%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="1%" valign="bottom" bgcolor="#CCFFFF" style="background:#CCFFFF;padding:0in 0in 0in 0in;width:1.02%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="5%" valign="bottom" bgcolor="#CCFFFF" style="background:#CCFFFF;border:none;border-bottom:solid windowtext 1.0pt;padding:0in 0in 0in 0in;width:5.34%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="1" face="Times New Roman" style="font-size:8.0pt;">77</font></p>
  </td>
  <td width="2%" valign="bottom" bgcolor="#CCFFFF" style="background:#CCFFFF;border:none;border-bottom:solid windowtext 1.0pt;padding:0in 0in 0in 0in;width:2.38%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="1%" valign="bottom" bgcolor="#CCFFFF" style="background:#CCFFFF;padding:0in 0in 0in 0in;width:1.02%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="5%" valign="bottom" bgcolor="#CCFFFF" style="background:#CCFFFF;border:none;border-bottom:solid windowtext 1.0pt;padding:0in 0in 0in 0in;width:5.6%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="1" face="Times New Roman" style="font-size:8.0pt;">1.9%</font></p>
  </td>
  <td width="2%" valign="bottom" bgcolor="#CCFFFF" style="background:#CCFFFF;border:none;border-bottom:solid windowtext 1.0pt;padding:0in 0in 0in 0in;width:2.12%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="1%" valign="bottom" bgcolor="#CCFFFF" style="background:#CCFFFF;padding:0in 0in 0in 0in;width:1.02%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="5%" valign="bottom" bgcolor="#CCFFFF" style="background:#CCFFFF;border:none;border-bottom:solid windowtext 1.0pt;padding:0in 0in 0in 0in;width:5.18%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="1" face="Times New Roman" style="font-size:8.0pt;">2</font></p>
  </td>
  <td width="2%" valign="bottom" bgcolor="#CCFFFF" style="background:#CCFFFF;border:none;border-bottom:solid windowtext 1.0pt;padding:0in 0in 0in 0in;width:2.54%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="1%" valign="bottom" bgcolor="#CCFFFF" style="background:#CCFFFF;padding:0in 0in 0in 0in;width:1.02%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="6%" valign="bottom" bgcolor="#CCFFFF" style="background:#CCFFFF;border:none;border-bottom:solid windowtext 1.0pt;padding:0in 0in 0in 0in;width:6.0%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="1" face="Times New Roman" style="font-size:8.0pt;">N/A</font></p>
  </td>
  <td width="1%" valign="bottom" bgcolor="#CCFFFF" style="background:#CCFFFF;border:none;border-bottom:solid windowtext 1.0pt;padding:0in 0in 0in 0in;width:1.7%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="1%" valign="bottom" bgcolor="#CCFFFF" style="background:#CCFFFF;padding:0in 0in 0in 0in;width:1.02%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="5%" valign="bottom" bgcolor="#CCFFFF" style="background:#CCFFFF;border:none;border-bottom:solid windowtext 1.0pt;padding:0in 0in 0in 0in;width:5.26%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="1" face="Times New Roman" style="font-size:8.0pt;">N/A</font></p>
  </td>
  <td width="2%" valign="bottom" bgcolor="#CCFFFF" style="background:#CCFFFF;border:none;border-bottom:solid windowtext 1.0pt;padding:0in 0in 0in 0in;width:2.44%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="1%" valign="bottom" bgcolor="#CCFFFF" style="background:#CCFFFF;padding:0in 0in 0in 0in;width:1.04%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="4%" valign="bottom" bgcolor="#CCFFFF" style="background:#CCFFFF;border:none;border-bottom:solid windowtext 1.0pt;padding:0in 0in 0in 0in;width:4.92%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="1" face="Times New Roman" style="font-size:8.0pt;">N/A</font></p>
  </td>
  <td width="2%" valign="bottom" bgcolor="#CCFFFF" style="background:#CCFFFF;border:none;border-bottom:solid windowtext 1.0pt;padding:0in 0in 0in 0in;width:2.78%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="1%" valign="bottom" bgcolor="#CCFFFF" style="background:#CCFFFF;padding:0in 0in 0in 0in;width:1.04%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="5%" valign="bottom" bgcolor="#CCFFFF" style="background:#CCFFFF;padding:0in 0in 0in 0in;width:5.38%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="1" face="Times New Roman" style="font-size:8.0pt;">N/A</font></p>
  </td>
  <td width="1%" valign="bottom" bgcolor="#CCFFFF" style="background:#CCFFFF;padding:0in 0in 0in 0in;width:1.88%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="11%" valign="top" style="padding:0in 0in 0in 0in;width:11.12%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:8.0pt;">Totals</font></p>
  </td>
  <td width="1%" valign="bottom" style="padding:0in 0in 0in 0in;width:1.02%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="6%" valign="bottom" style="border:none;border-bottom:double windowtext 2.25pt;padding:0in 0in 0in 0in;width:6.36%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="1" face="Times New Roman" style="font-size:8.0pt;">$628,898</font></p>
  </td>
  <td width="1%" valign="bottom" style="border:none;border-bottom:double windowtext 2.25pt;padding:0in 0in 0in 0in;width:1.76%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="1%" valign="bottom" style="padding:0in 0in 0in 0in;width:1.02%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="6%" valign="bottom" style="border:none;border-bottom:double windowtext 2.25pt;padding:0in 0in 0in 0in;width:6.44%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="1" face="Times New Roman" style="font-size:8.0pt;">100.0%</font></p>
  </td>
  <td width="2%" valign="bottom" style="border:none;border-bottom:double windowtext 2.25pt;padding:0in 0in 0in 0in;width:2.84%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="1%" valign="bottom" style="padding:0in 0in 0in 0in;width:1.02%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="5%" valign="bottom" style="border:none;border-bottom:double windowtext 2.25pt;padding:0in 0in 0in 0in;width:5.88%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="1" face="Times New Roman" style="font-size:8.0pt;">$31,660</font></p>
  </td>
  <td width="1%" valign="bottom" style="border:none;border-bottom:double windowtext 2.25pt;padding:0in 0in 0in 0in;width:1.82%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="1%" valign="bottom" style="padding:0in 0in 0in 0in;width:1.02%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="5%" valign="bottom" style="border:none;border-bottom:double windowtext 2.25pt;padding:0in 0in 0in 0in;width:5.34%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="1" face="Times New Roman" style="font-size:8.0pt;">$3,815</font></p>
  </td>
  <td width="2%" valign="bottom" style="border:none;border-bottom:double windowtext 2.25pt;padding:0in 0in 0in 0in;width:2.38%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="1%" valign="bottom" style="padding:0in 0in 0in 0in;width:1.02%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="5%" valign="bottom" style="border:none;border-bottom:double windowtext 2.25pt;padding:0in 0in 0in 0in;width:5.6%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="1" face="Times New Roman" style="font-size:8.0pt;">100.0%</font></p>
  </td>
  <td width="2%" valign="bottom" style="border:none;border-bottom:double windowtext 2.25pt;padding:0in 0in 0in 0in;width:2.12%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="1%" valign="bottom" style="padding:0in 0in 0in 0in;width:1.02%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="5%" valign="bottom" style="border:none;border-bottom:double windowtext 2.25pt;padding:0in 0in 0in 0in;width:5.18%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="1" face="Times New Roman" style="font-size:8.0pt;">208</font></p>
  </td>
  <td width="2%" valign="bottom" style="border:none;border-bottom:double windowtext 2.25pt;padding:0in 0in 0in 0in;width:2.54%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="1%" valign="bottom" style="padding:0in 0in 0in 0in;width:1.02%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="6%" valign="bottom" style="border:none;border-bottom:double windowtext 2.25pt;padding:0in 0in 0in 0in;width:6.0%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="1" face="Times New Roman" style="font-size:8.0pt;">11,714</font></p>
  </td>
  <td width="1%" valign="bottom" style="border:none;border-bottom:double windowtext 2.25pt;padding:0in 0in 0in 0in;width:1.7%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="1%" valign="bottom" style="padding:0in 0in 0in 0in;width:1.02%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="5%" valign="bottom" style="border:none;border-bottom:double windowtext 2.25pt;padding:0in 0in 0in 0in;width:5.26%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="1" face="Times New Roman" style="font-size:8.0pt;">4,579</font></p>
  </td>
  <td width="2%" valign="bottom" style="border:none;border-bottom:double windowtext 2.25pt;padding:0in 0in 0in 0in;width:2.44%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="1%" valign="bottom" style="padding:0in 0in 0in 0in;width:1.04%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="4%" valign="bottom" style="border:none;border-bottom:double windowtext 2.25pt;padding:0in 0in 0in 0in;width:4.92%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="1" face="Times New Roman" style="font-size:8.0pt;">370</font></p>
  </td>
  <td width="2%" valign="bottom" style="border:none;border-bottom:double windowtext 2.25pt;padding:0in 0in 0in 0in;width:2.78%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="1%" valign="bottom" style="padding:0in 0in 0in 0in;width:1.04%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="5%" valign="bottom" style="padding:0in 0in 0in 0in;width:5.38%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="1%" valign="bottom" style="padding:0in 0in 0in 0in;width:1.88%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
 </tr>
</table>

<p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:5.0pt;">&nbsp;</font></p>

<div style="margin:0in 0in .0001pt .25in;text-indent:-.25in;"><hr size="1" width="22%" noshade color="black" align="left"></div>

<table border="0" cellspacing="0" cellpadding="0" width="100%" style="border-collapse:collapse;width:100.0%;">
 <tr>
  <td width="3%" valign="top" style="padding:0in 0in 0in 0in;width:3.08%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:8.0pt;">(1)</font></p>
  </td>
  <td width="96%" valign="bottom" style="padding:0in 0in 0in 0in;width:96.92%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:8.0pt;">Other properties consist of independent living
  properties and properties providing any combination of skilled nursing,
  assisted living and/or independent living services.</font></p>
  </td>
 </tr>
 <tr>
  <td width="3%" valign="top" style="padding:0in 0in 0in 0in;width:3.08%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:8.0pt;">(2)</font></p>
  </td>
  <td width="96%" valign="bottom" style="padding:0in 0in 0in 0in;width:96.92%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:8.0pt;">Includes Interest Income from Mortgage Loans.</font></p>
  </td>
 </tr>
 <tr>
  <td width="3%" valign="top" style="padding:0in 0in 0in 0in;width:3.08%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:8.0pt;">(3)</font></p>
  </td>
  <td width="96%" valign="bottom" style="padding:0in 0in 0in 0in;width:96.92%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:8.0pt;">Includes Rental Income and Interest Income from
  Mortgage Loans.</font></p>
  </td>
 </tr>
 <tr>
  <td width="3%" valign="top" style="padding:0in 0in 0in 0in;width:3.08%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:8.0pt;">(4)</font></p>
  </td>
  <td width="96%" valign="bottom" style="padding:0in 0in 0in 0in;width:96.92%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:8.0pt;">We have investments in
  29 states leased or mortgaged to 43 different operators.</font></p>
  </td>
 </tr>
</table>

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:11.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:11.0pt;">As of
June&nbsp;30, 2010 we had $474.4&nbsp;million in carrying value of net real
estate investment, consisting of $407.3&nbsp;million or 85.8% invested in owned
and leased properties and $67.1&nbsp;million or 14.2% invested in mortgage
loans secured by first mortgages.</font></p>

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:11.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:11.0pt;">For the six months ended
June&nbsp;30, 2010, rental income and interest income from mortgage loans
represented 87.8% and 10.6%, respectively, of total gross revenues.&#160;&#160; In most instances, our lease structure
contains fixed annual rental escalations, which are generally recognized on a
straight-line basis over the minimum lease period.&#160; Certain leases have annual rental escalations
that are contingent upon changes in the Consumer Price Index and/or changes in
the gross operating revenues of the property.&#160;
This revenue is not recognized until the appropriate contingencies have
been resolved.&#160; This lease structure
initially generates lower revenues and net income but enables us to generate
additional growth and minimize non-cash straight-line rent over time.&#160; For the six months ended June&nbsp;30, 2010
and 2009, we recorded $1.9&nbsp;million and $2.2&nbsp;million, respectively, in
straight-line rental income.&#160; Also during
each of the six months ended June&nbsp;30, 2010 and 2009, we recorded an
additional $0.4&nbsp;million of straight-line rent receivable reserve.
Straight-line rental income on a same store basis will decrease from
$3.6&nbsp;million for projected annual 2010 to $1.6&nbsp;million for projected
annual 2011 assuming no modification or replacement of existing leases and no
new leased investments with fixed annual rental escalations are added to our
portfolio.&#160; Conversely, our cash rental
income is projected to increase from $61.6&nbsp;million for projected annual
2010 to $64.8&nbsp;million for projected annual 2011 assuming no modification
or replacement of existing leases and no new leased investments are added to
our portfolio.&#160; During the six months
ended June&nbsp;30, 2010, we received $30.1&nbsp;million of cash rental revenue
and recorded amortization of lease inducement cost of $0.3&nbsp;million.&#160; At June&nbsp;30, 2010 and December&nbsp;31,
2009, the straight-line rent receivable balance, net of reserves, on the
balance sheet was $18.7&nbsp;million and $17.3&nbsp;million, respectively.</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">22<a name="PB_22_230155_7056"></a></font></p>

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<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:11.0pt;">Our primary objectives
are to sustain and enhance stockholder equity value and provide current income
for distribution to stockholders through real estate investments in long-term
healthcare properties and other health care related properties managed by experienced
operators.&#160; To meet these objectives, we
attempt to invest in properties that provide opportunity for additional value
and current returns to our stockholders and diversify our investment portfolio
by geographic location, operator and form of investment. We opportunistically
consider investments in health care facilities in related businesses where the
business model is similar to our existing model and the opportunity provides an
attractive expected return.&#160; Consistent
with this strategy, we pursue, from time to time, opportunities for potential
acquisitions and investments, with due diligence and negotiations often at
different stages of development at any particular time.</font></p>

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:11.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt .75in;text-indent:-.25in;"><font size="2" face="Symbol" style="font-size:11.0pt;">&#183;</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:11.0pt;">For investments in skilled nursing
properties, we favor low cost per bed opportunities, whether in fee simple
properties or in mortgages.&#160; The average
per bed cost of our owned skilled nursing properties is approximately $35,100
per bed while that of properties subject to our mortgages is approximately
$9,100 per bed.</font></p>

<p style="margin:0in 0in .0001pt .75in;text-indent:-.25in;"><font size="2" face="Times New Roman" style="font-size:11.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt .75in;text-indent:-.25in;"><font size="2" face="Symbol" style="font-size:11.0pt;">&#183;</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:11.0pt;">Additionally with respect to skilled
nursing properties, we attempt to invest in properties that do not have to rely
on a high percentage of private-pay patients.&#160;
We seek to invest primarily in properties that are located in suburban
and rural areas of states.&#160; We prefer to
invest in a property that has significant market presence in its community and
where state certificate of need and/or licensing procedures limit the entry of
competing properties.</font></p>

<p style="margin:0in 0in .0001pt .75in;text-indent:-.25in;"><font size="2" face="Times New Roman" style="font-size:11.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt .75in;text-indent:-.25in;"><font size="2" face="Symbol" style="font-size:11.0pt;">&#183;</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:11.0pt;">For assisted living and independent
living investments we have attempted to diversify our portfolio both
geographically and across product levels.&#160;
Thus, we believe that although the majority of our investments are in
affordably priced units, our portfolio also includes a significant number of
upscale units in appropriate markets with certain operators.</font></p>

<p style="margin:0in 0in .0001pt .75in;text-indent:-.25in;"><font size="2" face="Times New Roman" style="font-size:11.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:11.0pt;">Substantially all of our
revenues and sources of cash flows from operations are derived from operating
lease rentals and interest earned on outstanding loans receivable.&#160; Our investments in mortgage loans and owned
properties represent our primary source of liquidity to fund distributions and
are dependent upon the performance of the operators on their leases and loan
obligations and the rates earned thereon.&#160;
To the extent that the operators experience operating difficulties and
are unable to generate sufficient cash to make payments to us, there could be a
material adverse impact on our consolidated results of operations, liquidity
and/or financial condition.&#160; To mitigate
this risk, we monitor our investments through a variety of methods determined
by the type of health care facility and operator.&#160; Our monitoring process includes periodic
review of financial statements for each facility, periodic review of operator
credit, scheduled property inspections and review of covenant compliance
relating to real estate taxes and insurance.</font></p>

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:11.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:11.0pt;">In addition to our
monitoring and research efforts, we also structure our investments to help
mitigate payment risk.&#160; Some operating
leases and loans are credit enhanced by guaranties and/or letters of
credit.&#160; In addition, operating leases
are typically structured as master leases and loans are generally
cross-defaulted and cross-collateralized with other loans, operating leases or
agreements between us and the operator and its affiliates.</font></p>

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:11.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:11.0pt;">Depending upon the
availability and cost of external capital, we anticipate making additional
investments in health care related properties.&#160;
New investments are generally funded from cash on hand and temporary
borrowings under our unsecured line of credit and internally generated cash
flows.&#160; Our investments generate internal
cash from rent and interest receipts and principal payments on mortgage loans
receivable.&#160; Permanent financing for
future investments, which replaces funds drawn under our unsecured line of
credit, is expected to be provided through a combination of public and private
offerings of debt and equity securities and secured debt financing.&#160; The timing, source and amount of cash flows
provided by financing activities and used in investing activities are sensitive
to the capital markets environment, especially to changes in interest
rates.&#160; Changes in the capital markets
environment may impact the availability of cost-effective capital.&#160; We believe our liquidity and various sources
of available capital are sufficient to fund operations, meet debt service
obligations (both principal and interest), make dividend distributions and
finance future investments during the current period of tightened credit
conditions.</font></p>

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<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">23<a name="PB_23_230309_5796"></a></font></p>

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<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;"><b><i><font size="2" face="Times New Roman" style="font-size:11.0pt;font-style:italic;font-weight:bold;">Economic
Climate</font></i></b></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:11.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:11.0pt;">The U.S. continues to
experience challenging financial markets, tight credit conditions, and slow
growth.&#160; However in 2010, several REITs
accessed the capital markets with follow-on equity offerings.&#160; There are continued concerns about the
systemic impact of the recession, declining business and consumer confidence,
and a weakened real estate market leading to increased market volatility and
diminished expectations for the U.S. economy.&#160;
As a result, the cost and availability of credit has been and may
continue to be adversely affected by illiquid credit markets and wider credit
spreads.&#160; Continued turbulence in the
U.S. and international markets and economies may adversely affect our liquidity
and financial condition, and the liquidity and financial condition of our
operators.</font></p>

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:11.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:11.0pt;">Despite the overall
economic climate, we believe our business model has enabled and will continue
to allow us to maintain the integrity of our property investments, including
our ability to respond to financial difficulties that may be experienced by
operators.&#160; We have taken and will
continue to have a conservative approach to managing our business and
investments, choosing to maintain liquidity and exercise patience until
favorable investment opportunities arise.</font></p>

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:11.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:11.0pt;">At June&nbsp;30, 2010, we
had $5.5&nbsp;million of cash on hand, $69.0&nbsp;million available on our
$110.0&nbsp;million Unsecured Credit Agreement which matures July&nbsp;17, 2011
and our potential ability to access the capital markets through the issuance of
$64.3&nbsp;million of common stock under our equity distribution agreement and
through the issuance of debt and/or equity securities under our
$400.0&nbsp;million effective shelf registration.&#160; Subsequent to June&nbsp;30, 2010, we
completed the sale to affiliates and managed accounts of Prudential Investment
Management,&nbsp;Inc. (individually and collectively &#147;Prudential&#148;) of
$25.0&nbsp;million aggregate principal amount of 5.26% senior unsecured term
notes due July&nbsp;14, 2015 and $25.0&nbsp;million aggregate principal amount
of 5.74% senior unsecured term notes due January&nbsp;14, 2019.&#160; Also, we entered into an uncommitted private
shelf agreement with Prudential which provides for the possible issuance of up
to an additional $50.0&nbsp;million of senior unsecured fixed-rate term notes
during the three-year issuance period.&#160;
The proceeds from the $50.0&nbsp;million senior unsecured term notes
were used to repay $41.0&nbsp;million under our Unsecured Credit
Agreement.&#160; After this repayment we have
no outstanding balance under our Unsecured Credit Agreement and
$110.0&nbsp;million available for borrowing.&#160;
As a result, we believe our liquidity and various sources of available
capital are sufficient to fund operations, meet debt service obligations (both principal
and interest), make dividend distributions and finance some future investments
should we determine such future investments are financially feasible.</font></p>

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:11.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;"><b><i><font size="2" face="Times New Roman" style="font-size:11.0pt;font-style:italic;font-weight:bold;">Political
Climate</font></i></b></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:11.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:11.0pt;">The Centers for Medicare&nbsp;&amp;
Medicaid Services (or CMS) annually updates Medicare skilled nursing facility
prospective payment system rates and other policies.&#160; On July&nbsp;31, 2009, CMS published the
final Medicare skilled nursing facility rates for fiscal year 2010, which began
on October&nbsp;1, 2009.&#160; The rule&nbsp;reduces
Medicare payments by $360&nbsp;million or 1.1%, compared to fiscal year 2009
levels.&#160; The rule&nbsp;provides for a
recalibration of the case mix weights that will reduce payments by 3.3%, which
more than offsets the 2.2% market basket update.&#160; On July&nbsp;22, 2010, CMS published a notice
with comment period announcing Medicare skilled nursing facility prospective
payment system rates for fiscal year 2011, beginning October&nbsp;1, 2010.&#160; CMS estimates that the notice would increase
total Medicare skilled nursing facility payments by $542 million (1.7%) in FY
2011 compared to 2010 rates as a result of a 2.3% increase in the market basket
update, offset in part by a negative 0.6% adjustment to reflect the difference
between CMS&#146;s previous forecast and the actual change in the market basket
index for FY 2009.&#160; The loss of revenues
associated with future changes in skilled nursing facility payment rates could
have an adverse effect on the financial condition of our lessees and borrowers
which could, in turn, adversely impact the timing or level of their payments to
us.</font></p>

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:11.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:11.0pt;">In March&nbsp;2010, the
President signed into law the Patient Protection and Affordable Care Act, as
amended by the Health Care and Education and Reconciliation Act of 2010 (or,
collectively, the Health Care Reform Law).&#160;
The Health Care Reform Law contain various provisions that may impact us
directly and that may impact our lessees and borrowers.&#160; Certain provisions of this law may have a
positive impact on the revenues of our lessees and borrowers, by increasing
coverage of uninsured individuals, for example.&#160;
Other </font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">24<a name="PB_24_230320_2897"></a></font></p>

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<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:11.0pt;">provisions may have a
negative impact on our lessees and borrowers, including health care provider
cost-containment initiatives such as reductions in Medicare skilled nursing
facility reimbursement, measures to tie Medicare provider reimbursement to
health care quality, mandatory compliance programs, enhanced transparency and
disclosure requirements, and incentives to state Medicaid programs to promote
community-based care as an alternative to institutional long-term care
services, among others.&#160; In addition, the
law provides for the establishment of a national voluntary pilot program to
bundle Medicare payments for hospital and post-acute services, which could lead
to changes in the delivery of post-acute services.&#160; The Health Care Reform Law also strengthens
certain fraud and abuse penalty provisions that could apply to our operators in
the event of one or more violations of federal health care laws.&#160; In addition, there are provisions that impact
the health coverage that we and our lessees and borrowers provide to our
respective employees.&#160; We cannot predict
at this time what effect, if any, the various provisions of the Health Care
Reform Law will have on our lessees and borrowers or our business; however, if
the operations, cash flows or financial condition of our lessees and borrowers
are materially adversely impacted by the Health Care Reform Law, our revenue
and operations may be adversely affected as well.</font></p>

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:11.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:11.0pt;">In addition, comprehensive
reforms affecting the payment for and availability of health care services have
been proposed at the state level and adopted by certain states, and most states
have adopted Medicaid cost containment provisions in recent years in light of
budget shortfalls.&#160; Congress and state
legislatures can be expected to continue to review and assess alternative
health care delivery systems and payment methodologies.&#160; Changes in the law, new interpretations of
existing laws, or changes in payment methodologies may have a dramatic effect
on the definition of permissible or impermissible activities, the relative
costs associated with doing business and the amount of reimbursement by
government and other third party payors.</font></p>

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:11.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;"><b><i><font size="2" face="Times New Roman" style="font-size:11.0pt;font-style:italic;font-weight:bold;">Key
Transactions</font></i></b></p>

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:11.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:11.0pt;">During the three months
ended June 30, 2010, we purchased two properties in Virginia, a 90-bed skilled
nursing property and a property with 137 skilled nursing beds, 47 assisted
living units and 46 independent units, for a total purchase price of $22.0
million and incurred and expensed $7,000 in transaction costs.&#160; These properties were leased to a third party
operator under a 12-year master lease with two 10-year renewal options.&#160; Also, during the three months ended June 30,
2010, we paid off a $7.6 million mortgage loan secured by an assisted living
property located in California.&#160; The
retired debt had an interest rate of 8.69%.&#160;
</font></p>

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:11.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:11.0pt;">Subsequent to June&nbsp;30,
2010, we completed the sale to affiliates and managed accounts of Prudential of
$25.0&nbsp;million aggregate principal amount of 5.26% senior unsecured term
notes due July&nbsp;14, 2015 and $25.0&nbsp;million aggregate principal amount
of 5.74% senior unsecured term notes due January&nbsp;14, 2019.&#160; Also, we entered into an uncommitted private
shelf agreement with Prudential which provides for the possible issuance of up
to an additional $50.0&nbsp;million of senior unsecured fixed-rate term notes
during the three-year issuance period. We used proceeds from the sale of the
senior unsecured notes to repay $41.0&nbsp;million under our Unsecured Credit
Agreement subsequent to June&nbsp;30, 2010.&#160;
After this repayment we have no outstanding balance under our Unsecured
Credit Agreement and $110.0&nbsp;million available for borrowing.</font></p>

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:11.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;"><b><i><font size="2" face="Times New Roman" style="font-size:11.0pt;font-style:italic;font-weight:bold;">Key
Performance Indicators, Trends and Uncertainties</font></i></b></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:11.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:11.0pt;">We utilize several key
performance indicators to evaluate the various aspects of our business.&#160; These indicators are discussed below and
relate to concentration risk and credit strength.&#160; Management uses these key performance
indicators to facilitate internal and external comparisons to our historical
operating results, in making operating decisions and for budget planning
purposes.</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">25<a name="PB_25_230353_3020"></a></font></p>

<div style="margin:0in 0in .0001pt;"><hr size="3" width="100%" noshade color="#010101" align="left"></div>

</div>
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<br clear="all" style="page-break-before:always;">


<div style="font-family:Times New Roman;">

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><i><font size="2" face="Times New Roman" style="font-size:11.0pt;font-style:italic;">Concentration
Risk.</font></i><font size="2" style="font-size:11.0pt;">&#160; We evaluate our concentration risk in terms
of asset mix, investment mix, operator mix and geographic mix.&#160; Concentration risk is valuable to understand
what portion of our investments could be at risk if certain sectors were to
experience downturns. Asset mix measures the portion of our investments that
are real property or mortgage loans. &#160;In
order to qualify as an equity REIT, at least 75 percent of our total assets
must be represented by real estate assets, cash, cash items and government
securities.&#160; Investment mix measures the
portion of our investments that relate to our various property types.&#160; Operator mix measures the portion of our
investments that relate to our top three operators.&#160; Geographic mix measures the portion of our
investment that relate to our top five states.&#160;
The following table reflects our recent historical trends of
concentration risk:</font></p>

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<table border="0" cellspacing="0" cellpadding="0" width="86%" style="border-collapse:collapse;margin-left:.5in;width:86.66%;">
 <tr>
  <td width="26%" valign="bottom" style="padding:0in 0in 0in 0in;width:26.74%;">
  <p style="margin:0in 0in .0001pt 10.0pt;text-indent:-10.0pt;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.88%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="69%" colspan="9" valign="bottom" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0in 0in 0in 0in;width:69.22%;">
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">Period Ended</font></p>
  </td>
  <td width="1%" valign="bottom" style="padding:0in 0in 0in 0in;width:1.16%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="26%" valign="bottom" style="padding:0in 0in 0in 0in;width:26.74%;">
  <p style="margin:0in 0in .0001pt 10.0pt;text-indent:-10.0pt;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.88%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="11%" valign="bottom" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0in 0in 0in 0in;width:11.5%;">
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">6/30/10</font></p>
  </td>
  <td width="2%" valign="bottom" style="border-bottom:solid windowtext 1.0pt;border-left:none;border-right:none;border-top:solid windowtext 1.0pt;padding:0in 0in 0in 0in;width:2.88%;">
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="11%" valign="bottom" style="border-bottom:solid windowtext 1.0pt;border-left:none;border-right:none;border-top:solid windowtext 1.0pt;padding:0in 0in 0in 0in;width:11.54%;">
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">3/31/10</font></p>
  </td>
  <td width="2%" valign="bottom" style="border-bottom:solid windowtext 1.0pt;border-left:none;border-right:none;border-top:solid windowtext 1.0pt;padding:0in 0in 0in 0in;width:2.88%;">
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="11%" valign="bottom" style="border-bottom:solid windowtext 1.0pt;border-left:none;border-right:none;border-top:solid windowtext 1.0pt;padding:0in 0in 0in 0in;width:11.54%;">
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">12/31/09</font></p>
  </td>
  <td width="2%" valign="bottom" style="border-bottom:solid windowtext 1.0pt;border-left:none;border-right:none;border-top:solid windowtext 1.0pt;padding:0in 0in 0in 0in;width:2.88%;">
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="11%" valign="bottom" style="border-bottom:solid windowtext 1.0pt;border-left:none;border-right:none;border-top:solid windowtext 1.0pt;padding:0in 0in 0in 0in;width:11.54%;">
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">9/30/09</font></p>
  </td>
  <td width="2%" valign="bottom" style="border-bottom:solid windowtext 1.0pt;border-left:none;border-right:none;border-top:solid windowtext 1.0pt;padding:0in 0in 0in 0in;width:2.88%;">
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="11%" valign="bottom" style="border-bottom:solid windowtext 1.0pt;border-left:none;border-right:none;border-top:solid windowtext 1.0pt;padding:0in 0in 0in 0in;width:11.56%;">
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">6/30/09</font></p>
  </td>
  <td width="1%" valign="bottom" style="padding:0in 0in 0in 0in;width:1.16%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="26%" valign="bottom" style="padding:0in 0in 0in 0in;width:26.74%;">
  <p style="margin:0in 0in .0001pt 10.0pt;text-indent:-10.0pt;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.88%;">
  <p style="margin:0in 0in .0001pt;"><i><font size="1" face="Times New Roman" style="font-size:1.0pt;font-style:italic;">&nbsp;</font></i></p>
  </td>
  <td width="69%" colspan="9" valign="bottom" style="border:none;padding:0in 0in 0in 0in;width:69.22%;">
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><i><font size="1" face="Times New Roman" style="font-size:9.0pt;font-style:italic;">(gross
  investment, in thousands)</font></i></p>
  </td>
  <td width="1%" valign="bottom" style="padding:0in 0in 0in 0in;width:1.16%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="26%" valign="bottom" style="padding:0in 0in 0in 0in;width:26.74%;">
  <p style="margin:0in 0in .0001pt 10.0pt;text-indent:-10.0pt;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">Asset
  mix:</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.88%;">
  <p style="margin:0in 0in .0001pt;"><i><font size="1" face="Times New Roman" style="font-size:1.0pt;font-style:italic;">&nbsp;</font></i></p>
  </td>
  <td width="11%" valign="bottom" style="padding:0in 0in 0in 0in;width:11.5%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><i><font size="1" face="Times New Roman" style="font-size:1.0pt;font-style:italic;">&nbsp;</font></i></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.88%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="11%" valign="bottom" style="padding:0in 0in 0in 0in;width:11.54%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.88%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="11%" valign="bottom" style="padding:0in 0in 0in 0in;width:11.54%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.88%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="11%" valign="bottom" style="padding:0in 0in 0in 0in;width:11.54%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.88%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="11%" valign="bottom" style="padding:0in 0in 0in 0in;width:11.56%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="1%" valign="bottom" style="padding:0in 0in 0in 0in;width:1.16%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="26%" valign="bottom" style="padding:0in 0in 0in 0in;width:26.74%;">
  <p style="margin:0in 0in .0001pt 20.0pt;text-indent:-10.0pt;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">Real
  property</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.88%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="11%" valign="bottom" style="padding:0in 0in 0in 0in;width:11.5%;">
  <p align="right" style="margin:0in 13.7pt .0001pt 0in;text-align:right;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">$560,254</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.88%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="11%" valign="bottom" style="padding:0in 0in 0in 0in;width:11.54%;">
  <p align="right" style="margin:0in 13.7pt .0001pt 0in;text-align:right;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">$536,963</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.88%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="11%" valign="bottom" style="padding:0in 0in 0in 0in;width:11.54%;">
  <p align="right" style="margin:0in 13.7pt .0001pt 0in;text-align:right;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">$519,460</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.88%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="11%" valign="bottom" style="padding:0in 0in 0in 0in;width:11.54%;">
  <p align="right" style="margin:0in 13.7pt .0001pt 0in;text-align:right;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">$505,181</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.88%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="11%" valign="bottom" style="padding:0in 0in 0in 0in;width:11.56%;">
  <p align="right" style="margin:0in 13.7pt .0001pt 0in;text-align:right;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">$504,354</font></p>
  </td>
  <td width="1%" valign="bottom" style="padding:0in 0in 0in 0in;width:1.16%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="26%" valign="bottom" style="padding:0in 0in 0in 0in;width:26.74%;">
  <p style="margin:0in 0in .0001pt 20.0pt;text-indent:-10.0pt;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">Loans
  receivable</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.88%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="11%" valign="bottom" style="padding:0in 0in 0in 0in;width:11.5%;">
  <p align="right" style="margin:0in 13.7pt .0001pt 0in;text-align:right;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">68,644</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.88%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="11%" valign="bottom" style="padding:0in 0in 0in 0in;width:11.54%;">
  <p align="right" style="margin:0in 13.7pt .0001pt 0in;text-align:right;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">69,663</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.88%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="11%" valign="bottom" style="padding:0in 0in 0in 0in;width:11.54%;">
  <p align="right" style="margin:0in 13.7pt .0001pt 0in;text-align:right;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">70,587</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.88%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="11%" valign="bottom" style="padding:0in 0in 0in 0in;width:11.54%;">
  <p align="right" style="margin:0in 13.7pt .0001pt 0in;text-align:right;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">72,268</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.88%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="11%" valign="bottom" style="padding:0in 0in 0in 0in;width:11.56%;">
  <p align="right" style="margin:0in 13.7pt .0001pt 0in;text-align:right;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">74,286</font></p>
  </td>
  <td width="1%" valign="bottom" style="padding:0in 0in 0in 0in;width:1.16%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="26%" valign="bottom" style="padding:0in 0in 0in 0in;width:26.74%;">
  <p style="margin:0in 0in .0001pt 10.0pt;text-indent:-10.0pt;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">&nbsp;</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.88%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">&nbsp;</font></p>
  </td>
  <td width="11%" valign="bottom" style="padding:0in 0in 0in 0in;width:11.5%;">
  <p align="right" style="margin:0in 13.7pt .0001pt 0in;text-align:right;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">&nbsp;</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.88%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">&nbsp;</font></p>
  </td>
  <td width="11%" valign="bottom" style="padding:0in 0in 0in 0in;width:11.54%;">
  <p align="right" style="margin:0in 13.7pt .0001pt 0in;text-align:right;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">&nbsp;</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.88%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">&nbsp;</font></p>
  </td>
  <td width="11%" valign="bottom" style="padding:0in 0in 0in 0in;width:11.54%;">
  <p align="right" style="margin:0in 13.7pt .0001pt 0in;text-align:right;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">&nbsp;</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.88%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">&nbsp;</font></p>
  </td>
  <td width="11%" valign="bottom" style="padding:0in 0in 0in 0in;width:11.54%;">
  <p align="right" style="margin:0in 13.7pt .0001pt 0in;text-align:right;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">&nbsp;</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.88%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">&nbsp;</font></p>
  </td>
  <td width="11%" valign="bottom" style="padding:0in 0in 0in 0in;width:11.56%;">
  <p align="right" style="margin:0in 13.7pt .0001pt 0in;text-align:right;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">&nbsp;</font></p>
  </td>
  <td width="1%" valign="bottom" style="padding:0in 0in 0in 0in;width:1.16%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="26%" valign="bottom" style="padding:0in 0in 0in 0in;width:26.74%;">
  <p style="margin:0in 0in .0001pt 10.0pt;text-indent:-10.0pt;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">Investment
  mix:</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.88%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="11%" valign="bottom" style="padding:0in 0in 0in 0in;width:11.5%;">
  <p align="right" style="margin:0in 13.7pt .0001pt 0in;text-align:right;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.88%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="11%" valign="bottom" style="padding:0in 0in 0in 0in;width:11.54%;">
  <p align="right" style="margin:0in 13.7pt .0001pt 0in;text-align:right;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.88%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="11%" valign="bottom" style="padding:0in 0in 0in 0in;width:11.54%;">
  <p align="right" style="margin:0in 13.7pt .0001pt 0in;text-align:right;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.88%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="11%" valign="bottom" style="padding:0in 0in 0in 0in;width:11.54%;">
  <p align="right" style="margin:0in 13.7pt .0001pt 0in;text-align:right;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.88%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="11%" valign="bottom" style="padding:0in 0in 0in 0in;width:11.56%;">
  <p align="right" style="margin:0in 13.7pt .0001pt 0in;text-align:right;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="1%" valign="bottom" style="padding:0in 0in 0in 0in;width:1.16%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="26%" valign="bottom" style="padding:0in 0in 0in 0in;width:26.74%;">
  <p style="margin:0in 0in .0001pt 20.0pt;text-indent:-10.0pt;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">Assisted
  living properties</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.88%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="11%" valign="bottom" style="padding:0in 0in 0in 0in;width:11.5%;">
  <p align="right" style="margin:0in 13.7pt .0001pt 0in;text-align:right;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">$293,258</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.88%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="11%" valign="bottom" style="padding:0in 0in 0in 0in;width:11.54%;">
  <p align="right" style="margin:0in 13.7pt .0001pt 0in;text-align:right;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">$292,249</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.88%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="11%" valign="bottom" style="padding:0in 0in 0in 0in;width:11.54%;">
  <p align="right" style="margin:0in 13.7pt .0001pt 0in;text-align:right;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">$292,225</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.88%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="11%" valign="bottom" style="padding:0in 0in 0in 0in;width:11.54%;">
  <p align="right" style="margin:0in 13.7pt .0001pt 0in;text-align:right;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">$278,989</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.88%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="11%" valign="bottom" style="padding:0in 0in 0in 0in;width:11.56%;">
  <p align="right" style="margin:0in 13.7pt .0001pt 0in;text-align:right;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">$278,888</font></p>
  </td>
  <td width="1%" valign="bottom" style="padding:0in 0in 0in 0in;width:1.16%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="26%" valign="bottom" style="padding:0in 0in 0in 0in;width:26.74%;">
  <p style="margin:0in 0in .0001pt 20.0pt;text-indent:-10.0pt;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">Skilled
  nursing properties</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.88%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="11%" valign="bottom" style="padding:0in 0in 0in 0in;width:11.5%;">
  <p align="right" style="margin:0in 13.7pt .0001pt 0in;text-align:right;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">279,097</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.88%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="11%" valign="bottom" style="padding:0in 0in 0in 0in;width:11.54%;">
  <p align="right" style="margin:0in 13.7pt .0001pt 0in;text-align:right;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">271,165</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.88%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="11%" valign="bottom" style="padding:0in 0in 0in 0in;width:11.54%;">
  <p align="right" style="margin:0in 13.7pt .0001pt 0in;text-align:right;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">254,695</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.88%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="11%" valign="bottom" style="padding:0in 0in 0in 0in;width:11.54%;">
  <p align="right" style="margin:0in 13.7pt .0001pt 0in;text-align:right;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">255,649</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.88%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="11%" valign="bottom" style="padding:0in 0in 0in 0in;width:11.56%;">
  <p align="right" style="margin:0in 13.7pt .0001pt 0in;text-align:right;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">257,456</font></p>
  </td>
  <td width="1%" valign="bottom" style="padding:0in 0in 0in 0in;width:1.16%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="26%" valign="bottom" style="padding:0in 0in 0in 0in;width:26.74%;">
  <p style="margin:0in 0in .0001pt 20.0pt;text-indent:-10.0pt;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">Other
  properties </font><font size="1" style="font-size:6.0pt;position:relative;top:-2.0pt;">(1)</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.88%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="11%" valign="bottom" style="padding:0in 0in 0in 0in;width:11.5%;">
  <p align="right" style="margin:0in 13.7pt .0001pt 0in;text-align:right;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">43,523</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.88%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="11%" valign="bottom" style="padding:0in 0in 0in 0in;width:11.54%;">
  <p align="right" style="margin:0in 13.7pt .0001pt 0in;text-align:right;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">30,192</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.88%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="11%" valign="bottom" style="padding:0in 0in 0in 0in;width:11.54%;">
  <p align="right" style="margin:0in 13.7pt .0001pt 0in;text-align:right;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">30,107</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.88%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="11%" valign="bottom" style="padding:0in 0in 0in 0in;width:11.54%;">
  <p align="right" style="margin:0in 13.7pt .0001pt 0in;text-align:right;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">29,791</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.88%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="11%" valign="bottom" style="padding:0in 0in 0in 0in;width:11.56%;">
  <p align="right" style="margin:0in 13.7pt .0001pt 0in;text-align:right;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">29,276</font></p>
  </td>
  <td width="1%" valign="bottom" style="padding:0in 0in 0in 0in;width:1.16%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="26%" valign="bottom" style="padding:0in 0in 0in 0in;width:26.74%;">
  <p style="margin:0in 0in .0001pt 20.0pt;text-indent:-10.0pt;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">Schools</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.88%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="11%" valign="bottom" style="padding:0in 0in 0in 0in;width:11.5%;">
  <p align="right" style="margin:0in 13.7pt .0001pt 0in;text-align:right;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">13,020</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.88%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="11%" valign="bottom" style="padding:0in 0in 0in 0in;width:11.54%;">
  <p align="right" style="margin:0in 13.7pt .0001pt 0in;text-align:right;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">13,020</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.88%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="11%" valign="bottom" style="padding:0in 0in 0in 0in;width:11.54%;">
  <p align="right" style="margin:0in 13.7pt .0001pt 0in;text-align:right;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">13,020</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.88%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="11%" valign="bottom" style="padding:0in 0in 0in 0in;width:11.54%;">
  <p align="right" style="margin:0in 13.7pt .0001pt 0in;text-align:right;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">13,020</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.88%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="11%" valign="bottom" style="padding:0in 0in 0in 0in;width:11.56%;">
  <p align="right" style="margin:0in 13.7pt .0001pt 0in;text-align:right;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">13,020</font></p>
  </td>
  <td width="1%" valign="bottom" style="padding:0in 0in 0in 0in;width:1.16%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="26%" valign="bottom" style="padding:0in 0in 0in 0in;width:26.74%;">
  <p style="margin:0in 0in .0001pt 10.0pt;text-indent:-10.0pt;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">&nbsp;</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.88%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">&nbsp;</font></p>
  </td>
  <td width="11%" valign="bottom" style="padding:0in 0in 0in 0in;width:11.5%;">
  <p align="right" style="margin:0in 13.7pt .0001pt 0in;text-align:right;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">&nbsp;</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.88%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">&nbsp;</font></p>
  </td>
  <td width="11%" valign="bottom" style="padding:0in 0in 0in 0in;width:11.54%;">
  <p align="right" style="margin:0in 13.7pt .0001pt 0in;text-align:right;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">&nbsp;</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.88%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">&nbsp;</font></p>
  </td>
  <td width="11%" valign="bottom" style="padding:0in 0in 0in 0in;width:11.54%;">
  <p align="right" style="margin:0in 13.7pt .0001pt 0in;text-align:right;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">&nbsp;</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.88%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">&nbsp;</font></p>
  </td>
  <td width="11%" valign="bottom" style="padding:0in 0in 0in 0in;width:11.54%;">
  <p align="right" style="margin:0in 13.7pt .0001pt 0in;text-align:right;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">&nbsp;</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.88%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">&nbsp;</font></p>
  </td>
  <td width="11%" valign="bottom" style="padding:0in 0in 0in 0in;width:11.56%;">
  <p align="right" style="margin:0in 13.7pt .0001pt 0in;text-align:right;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">&nbsp;</font></p>
  </td>
  <td width="1%" valign="bottom" style="padding:0in 0in 0in 0in;width:1.16%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="26%" valign="bottom" style="padding:0in 0in 0in 0in;width:26.74%;">
  <p style="margin:0in 0in .0001pt 10.0pt;text-indent:-10.0pt;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">Operator
  mix:</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.88%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="11%" valign="bottom" style="padding:0in 0in 0in 0in;width:11.5%;">
  <p align="right" style="margin:0in 13.7pt .0001pt 0in;text-align:right;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.88%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="11%" valign="bottom" style="padding:0in 0in 0in 0in;width:11.54%;">
  <p align="right" style="margin:0in 13.7pt .0001pt 0in;text-align:right;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.88%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="11%" valign="bottom" style="padding:0in 0in 0in 0in;width:11.54%;">
  <p align="right" style="margin:0in 13.7pt .0001pt 0in;text-align:right;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.88%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="11%" valign="bottom" style="padding:0in 0in 0in 0in;width:11.54%;">
  <p align="right" style="margin:0in 13.7pt .0001pt 0in;text-align:right;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.88%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="11%" valign="bottom" style="padding:0in 0in 0in 0in;width:11.56%;">
  <p align="right" style="margin:0in 13.7pt .0001pt 0in;text-align:right;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="1%" valign="bottom" style="padding:0in 0in 0in 0in;width:1.16%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="26%" valign="bottom" style="padding:0in 0in 0in 0in;width:26.74%;">
  <p style="margin:0in 0in .0001pt 20.0pt;text-indent:-10.0pt;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">Brookdale
  Communities</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.88%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="11%" valign="bottom" style="padding:0in 0in 0in 0in;width:11.5%;">
  <p align="right" style="margin:0in 13.7pt .0001pt 0in;text-align:right;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">$&nbsp;&nbsp;84,210</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.88%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="11%" valign="bottom" style="padding:0in 0in 0in 0in;width:11.54%;">
  <p align="right" style="margin:0in 13.7pt .0001pt 0in;text-align:right;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">$&nbsp;&nbsp;84,210</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.88%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="11%" valign="bottom" style="padding:0in 0in 0in 0in;width:11.54%;">
  <p align="right" style="margin:0in 13.7pt .0001pt 0in;text-align:right;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">$&nbsp;&nbsp;84,210</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.88%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="11%" valign="bottom" style="padding:0in 0in 0in 0in;width:11.54%;">
  <p align="right" style="margin:0in 13.7pt .0001pt 0in;text-align:right;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">$&nbsp;84,210</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.88%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="11%" valign="bottom" style="padding:0in 0in 0in 0in;width:11.56%;">
  <p align="right" style="margin:0in 13.7pt .0001pt 0in;text-align:right;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">$&nbsp;84,210</font></p>
  </td>
  <td width="1%" valign="bottom" style="padding:0in 0in 0in 0in;width:1.16%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="26%" valign="bottom" style="padding:0in 0in 0in 0in;width:26.74%;">
  <p style="margin:0in 0in .0001pt 20.0pt;text-indent:-10.0pt;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">Preferred
  Care,&nbsp;Inc. </font><font size="1" style="font-size:6.0pt;position:relative;top:-2.0pt;">(2)</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.88%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="11%" valign="bottom" style="padding:0in 0in 0in 0in;width:11.5%;">
  <p align="right" style="margin:0in 13.7pt .0001pt 0in;text-align:right;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">86,516</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.88%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="11%" valign="bottom" style="padding:0in 0in 0in 0in;width:11.54%;">
  <p align="right" style="margin:0in 13.7pt .0001pt 0in;text-align:right;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">86,610</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.88%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="11%" valign="bottom" style="padding:0in 0in 0in 0in;width:11.54%;">
  <p align="right" style="margin:0in 13.7pt .0001pt 0in;text-align:right;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">86,702</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.88%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="11%" valign="bottom" style="padding:0in 0in 0in 0in;width:11.54%;">
  <p align="right" style="margin:0in 13.7pt .0001pt 0in;text-align:right;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">86,803</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.88%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="11%" valign="bottom" style="padding:0in 0in 0in 0in;width:11.56%;">
  <p align="right" style="margin:0in 13.7pt .0001pt 0in;text-align:right;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">86,923</font></p>
  </td>
  <td width="1%" valign="bottom" style="padding:0in 0in 0in 0in;width:1.16%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="26%" valign="bottom" style="padding:0in 0in 0in 0in;width:26.74%;">
  <p style="margin:0in 0in .0001pt 20.0pt;text-indent:-10.0pt;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">Extendicare
  (ALC)</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.88%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="11%" valign="bottom" style="padding:0in 0in 0in 0in;width:11.5%;">
  <p align="right" style="margin:0in 13.7pt .0001pt 0in;text-align:right;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">88,034</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.88%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="11%" valign="bottom" style="padding:0in 0in 0in 0in;width:11.54%;">
  <p align="right" style="margin:0in 13.7pt .0001pt 0in;text-align:right;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">88,034</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.88%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="11%" valign="bottom" style="padding:0in 0in 0in 0in;width:11.54%;">
  <p align="right" style="margin:0in 13.7pt .0001pt 0in;text-align:right;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">88,034</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.88%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="11%" valign="bottom" style="padding:0in 0in 0in 0in;width:11.54%;">
  <p align="right" style="margin:0in 13.7pt .0001pt 0in;text-align:right;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">88,034</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.88%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="11%" valign="bottom" style="padding:0in 0in 0in 0in;width:11.56%;">
  <p align="right" style="margin:0in 13.7pt .0001pt 0in;text-align:right;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">88,034</font></p>
  </td>
  <td width="1%" valign="bottom" style="padding:0in 0in 0in 0in;width:1.16%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="26%" valign="bottom" style="padding:0in 0in 0in 0in;width:26.74%;">
  <p style="margin:0in 0in .0001pt 20.0pt;text-indent:-10.0pt;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">Remaining
  operators</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.88%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="11%" valign="bottom" style="padding:0in 0in 0in 0in;width:11.5%;">
  <p align="right" style="margin:0in 13.7pt .0001pt 0in;text-align:right;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">370,138</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.88%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="11%" valign="bottom" style="padding:0in 0in 0in 0in;width:11.54%;">
  <p align="right" style="margin:0in 13.7pt .0001pt 0in;text-align:right;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">347,772</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.88%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="11%" valign="bottom" style="padding:0in 0in 0in 0in;width:11.54%;">
  <p align="right" style="margin:0in 13.7pt .0001pt 0in;text-align:right;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">331,101</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.88%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="11%" valign="bottom" style="padding:0in 0in 0in 0in;width:11.54%;">
  <p align="right" style="margin:0in 13.7pt .0001pt 0in;text-align:right;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">318,402</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.88%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="11%" valign="bottom" style="padding:0in 0in 0in 0in;width:11.56%;">
  <p align="right" style="margin:0in 13.7pt .0001pt 0in;text-align:right;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">319,473</font></p>
  </td>
  <td width="1%" valign="bottom" style="padding:0in 0in 0in 0in;width:1.16%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="26%" valign="bottom" style="padding:0in 0in 0in 0in;width:26.74%;">
  <p style="margin:0in 0in .0001pt 10.0pt;text-indent:-10.0pt;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">&nbsp;</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.88%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">&nbsp;</font></p>
  </td>
  <td width="11%" valign="bottom" style="padding:0in 0in 0in 0in;width:11.5%;">
  <p align="right" style="margin:0in 13.7pt .0001pt 0in;text-align:right;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">&nbsp;</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.88%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">&nbsp;</font></p>
  </td>
  <td width="11%" valign="bottom" style="padding:0in 0in 0in 0in;width:11.54%;">
  <p align="right" style="margin:0in 13.7pt .0001pt 0in;text-align:right;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">&nbsp;</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.88%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">&nbsp;</font></p>
  </td>
  <td width="11%" valign="bottom" style="padding:0in 0in 0in 0in;width:11.54%;">
  <p align="right" style="margin:0in 13.7pt .0001pt 0in;text-align:right;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">&nbsp;</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.88%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">&nbsp;</font></p>
  </td>
  <td width="11%" valign="bottom" style="padding:0in 0in 0in 0in;width:11.54%;">
  <p align="right" style="margin:0in 13.7pt .0001pt 0in;text-align:right;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">&nbsp;</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.88%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">&nbsp;</font></p>
  </td>
  <td width="11%" valign="bottom" style="padding:0in 0in 0in 0in;width:11.56%;">
  <p align="right" style="margin:0in 13.7pt .0001pt 0in;text-align:right;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">&nbsp;</font></p>
  </td>
  <td width="1%" valign="bottom" style="padding:0in 0in 0in 0in;width:1.16%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="26%" valign="bottom" style="padding:0in 0in 0in 0in;width:26.74%;">
  <p style="margin:0in 0in .0001pt 10.0pt;text-indent:-10.0pt;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">Geographic
  mix:</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.88%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="11%" valign="bottom" style="padding:0in 0in 0in 0in;width:11.5%;">
  <p align="right" style="margin:0in 13.7pt .0001pt 0in;text-align:right;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.88%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="11%" valign="bottom" style="padding:0in 0in 0in 0in;width:11.54%;">
  <p align="right" style="margin:0in 13.7pt .0001pt 0in;text-align:right;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.88%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="11%" valign="bottom" style="padding:0in 0in 0in 0in;width:11.54%;">
  <p align="right" style="margin:0in 13.7pt .0001pt 0in;text-align:right;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.88%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="11%" valign="bottom" style="padding:0in 0in 0in 0in;width:11.54%;">
  <p align="right" style="margin:0in 13.7pt .0001pt 0in;text-align:right;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.88%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="11%" valign="bottom" style="padding:0in 0in 0in 0in;width:11.56%;">
  <p align="right" style="margin:0in 13.7pt .0001pt 0in;text-align:right;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="1%" valign="bottom" style="padding:0in 0in 0in 0in;width:1.16%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="26%" valign="bottom" style="padding:0in 0in 0in 0in;width:26.74%;">
  <p style="margin:0in 0in .0001pt 20.0pt;text-indent:-10.0pt;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">Colorado</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.88%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="11%" valign="bottom" style="padding:0in 0in 0in 0in;width:11.5%;">
  <p align="right" style="margin:0in 13.7pt .0001pt 0in;text-align:right;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">$&nbsp;&nbsp;27,806</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.88%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="11%" valign="bottom" style="padding:0in 0in 0in 0in;width:11.54%;">
  <p align="right" style="margin:0in 13.7pt .0001pt 0in;text-align:right;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">$&nbsp;&nbsp;27,806</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.88%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="11%" valign="bottom" style="padding:0in 0in 0in 0in;width:11.54%;">
  <p align="right" style="margin:0in 13.7pt .0001pt 0in;text-align:right;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">$&nbsp;&nbsp;27,806</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.88%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="11%" valign="bottom" style="padding:0in 0in 0in 0in;width:11.54%;">
  <p align="right" style="margin:0in 13.7pt .0001pt 0in;text-align:right;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">$&nbsp;&nbsp;27,806</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.88%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="11%" valign="bottom" style="padding:0in 0in 0in 0in;width:11.56%;">
  <p align="right" style="margin:0in 13.7pt .0001pt 0in;text-align:right;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">$&nbsp;27,753</font></p>
  </td>
  <td width="1%" valign="bottom" style="padding:0in 0in 0in 0in;width:1.16%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="26%" valign="bottom" style="padding:0in 0in 0in 0in;width:26.74%;">
  <p style="margin:0in 0in .0001pt 20.0pt;text-indent:-10.0pt;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">Florida</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.88%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="11%" valign="bottom" style="padding:0in 0in 0in 0in;width:11.5%;">
  <p align="right" style="margin:0in 13.7pt .0001pt 0in;text-align:right;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">53,078</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.88%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="11%" valign="bottom" style="padding:0in 0in 0in 0in;width:11.54%;">
  <p align="right" style="margin:0in 13.7pt .0001pt 0in;text-align:right;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">53,132</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.88%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="11%" valign="bottom" style="padding:0in 0in 0in 0in;width:11.54%;">
  <p align="right" style="margin:0in 13.7pt .0001pt 0in;text-align:right;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">44,144</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.88%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="11%" valign="bottom" style="padding:0in 0in 0in 0in;width:11.54%;">
  <p align="right" style="margin:0in 13.7pt .0001pt 0in;text-align:right;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">43,941</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.88%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="11%" valign="bottom" style="padding:0in 0in 0in 0in;width:11.56%;">
  <p align="right" style="margin:0in 13.7pt .0001pt 0in;text-align:right;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">43,887</font></p>
  </td>
  <td width="1%" valign="bottom" style="padding:0in 0in 0in 0in;width:1.16%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="26%" valign="bottom" style="padding:0in 0in 0in 0in;width:26.74%;">
  <p style="margin:0in 0in .0001pt 20.0pt;text-indent:-10.0pt;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">Ohio</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.88%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="11%" valign="bottom" style="padding:0in 0in 0in 0in;width:11.5%;">
  <p align="right" style="margin:0in 13.7pt .0001pt 0in;text-align:right;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">56,804</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.88%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="11%" valign="bottom" style="padding:0in 0in 0in 0in;width:11.54%;">
  <p align="right" style="margin:0in 13.7pt .0001pt 0in;text-align:right;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">56,804</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.88%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="11%" valign="bottom" style="padding:0in 0in 0in 0in;width:11.54%;">
  <p align="right" style="margin:0in 13.7pt .0001pt 0in;text-align:right;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">56,804</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.88%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="11%" valign="bottom" style="padding:0in 0in 0in 0in;width:11.54%;">
  <p align="right" style="margin:0in 13.7pt .0001pt 0in;text-align:right;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">56,804</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.88%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="11%" valign="bottom" style="padding:0in 0in 0in 0in;width:11.56%;">
  <p align="right" style="margin:0in 13.7pt .0001pt 0in;text-align:right;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">56,804</font></p>
  </td>
  <td width="1%" valign="bottom" style="padding:0in 0in 0in 0in;width:1.16%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="26%" valign="bottom" style="padding:0in 0in 0in 0in;width:26.74%;">
  <p style="margin:0in 0in .0001pt 20.0pt;text-indent:-10.0pt;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">Texas</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.88%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="11%" valign="bottom" style="padding:0in 0in 0in 0in;width:11.5%;">
  <p align="right" style="margin:0in 13.7pt .0001pt 0in;text-align:right;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">109,556</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.88%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="11%" valign="bottom" style="padding:0in 0in 0in 0in;width:11.54%;">
  <p align="right" style="margin:0in 13.7pt .0001pt 0in;text-align:right;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">110,017</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.88%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="11%" valign="bottom" style="padding:0in 0in 0in 0in;width:11.54%;">
  <p align="right" style="margin:0in 13.7pt .0001pt 0in;text-align:right;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">102,741</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.88%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="11%" valign="bottom" style="padding:0in 0in 0in 0in;width:11.54%;">
  <p align="right" style="margin:0in 13.7pt .0001pt 0in;text-align:right;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">103,251</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.88%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="11%" valign="bottom" style="padding:0in 0in 0in 0in;width:11.56%;">
  <p align="right" style="margin:0in 13.7pt .0001pt 0in;text-align:right;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">103,657</font></p>
  </td>
  <td width="1%" valign="bottom" style="padding:0in 0in 0in 0in;width:1.16%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="26%" valign="bottom" style="padding:0in 0in 0in 0in;width:26.74%;">
  <p style="margin:0in 0in .0001pt 20.0pt;text-indent:-10.0pt;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">Washington</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.88%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="11%" valign="bottom" style="padding:0in 0in 0in 0in;width:11.5%;">
  <p align="right" style="margin:0in 13.7pt .0001pt 0in;text-align:right;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">28,118</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.88%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="11%" valign="bottom" style="padding:0in 0in 0in 0in;width:11.54%;">
  <p align="right" style="margin:0in 13.7pt .0001pt 0in;text-align:right;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">28,138</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.88%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="11%" valign="bottom" style="padding:0in 0in 0in 0in;width:11.54%;">
  <p align="right" style="margin:0in 13.7pt .0001pt 0in;text-align:right;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">27,815</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.88%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="11%" valign="bottom" style="padding:0in 0in 0in 0in;width:11.54%;">
  <p align="right" style="margin:0in 13.7pt .0001pt 0in;text-align:right;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">27,293</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.88%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="11%" valign="bottom" style="padding:0in 0in 0in 0in;width:11.56%;">
  <p align="right" style="margin:0in 13.7pt .0001pt 0in;text-align:right;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">27,312</font></p>
  </td>
  <td width="1%" valign="bottom" style="padding:0in 0in 0in 0in;width:1.16%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="26%" valign="bottom" style="padding:0in 0in 0in 0in;width:26.74%;">
  <p style="margin:0in 0in .0001pt 20.0pt;text-indent:-10.0pt;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">Remaining
  states</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.88%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="11%" valign="bottom" style="padding:0in 0in 0in 0in;width:11.5%;">
  <p align="right" style="margin:0in 13.7pt .0001pt 0in;text-align:right;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">353,536</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.88%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="11%" valign="bottom" style="padding:0in 0in 0in 0in;width:11.54%;">
  <p align="right" style="margin:0in 13.7pt .0001pt 0in;text-align:right;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">330,729</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.88%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="11%" valign="bottom" style="padding:0in 0in 0in 0in;width:11.54%;">
  <p align="right" style="margin:0in 13.7pt .0001pt 0in;text-align:right;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">330,737</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.88%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="11%" valign="bottom" style="padding:0in 0in 0in 0in;width:11.54%;">
  <p align="right" style="margin:0in 13.7pt .0001pt 0in;text-align:right;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">318,354</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.88%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="11%" valign="bottom" style="padding:0in 0in 0in 0in;width:11.56%;">
  <p align="right" style="margin:0in 13.7pt .0001pt 0in;text-align:right;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">319,227</font></p>
  </td>
  <td width="1%" valign="bottom" style="padding:0in 0in 0in 0in;width:1.16%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
 </tr>
</table>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<div style="margin:0in 0in .0001pt 31.7pt;"><hr size="1" width="18%" noshade color="black" align="left"></div>

<p style="margin:0in 0in .0001pt 45.0pt;text-indent:-13.5pt;"><font size="1" face="Times New Roman" style="font-size:8.0pt;">(1)</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160; </font><font size="1" style="font-size:8.0pt;">Other properties consist of independent living
properties and properties providing any combination of skilled nursing,
assisted living and/or independent living services.&#160; </font></p>

<p style="margin:0in 0in .0001pt 45.0pt;text-indent:-13.5pt;"><font size="1" face="Times New Roman" style="font-size:8.0pt;">(2)</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160; </font><font size="1" style="font-size:8.0pt;">Preferred Care,&nbsp;Inc. leases 23
skilled nursing and two combination properties under two master leases and one
skilled nursing property under a separate lease agreement.&#160; In addition, they operate seven skilled
nursing properties securing six mortgage loans receivable we have with
unrelated third parties and one mortgage loan receivable we have with Preferred
Care.&#160; They also operate one skilled
nursing facility under a sub-lease with another lessee we have which is not
included in the Preferred Care operator mix.</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="1" face="Times New Roman" style="font-size:8.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">26<a name="PB_26_230528_7748"></a></font></p>

<div style="margin:0in 0in .0001pt;"><hr size="3" width="100%" noshade color="#010101" align="left"></div>

</div>
<!-- SEQ.=1,FOLIO='26',FILE='C:\JMS\105540\10-12718-1\task4212128\12718-1-ba-11.htm',USER='105540',CD='Aug  2 02:19 2010' -->



<br clear="all" style="page-break-before:always;">
<div style="font-family:Times New Roman;">

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt .05in;text-indent:.5in;"><i><font size="2" face="Times New Roman" style="font-size:11.0pt;font-style:italic;">Credit Strength.</font></i><font size="2" style="font-size:11.0pt;">&#160; We measure our
credit strength both in terms of leverage ratios and coverage ratios.&#160; Our leverage ratios include debt to book
capitalization and debt to market capitalization.&#160; The leverage ratios indicate how much of our
balance sheet capitalization relates to long-term debt.&#160; Our coverage ratios include interest coverage
ratio and fixed charge coverage ratio.&#160;
The coverage ratios indicate our ability to service interest and fixed
charges (interest plus preferred dividends).&#160;
The coverage ratios are based on earnings before interest, taxes,
depreciation and amortization (or EBITDA).&#160;
Leverage ratios and coverage ratios are widely used by investors,
analysts and rating agencies in the valuation, comparison, rating and
investment recommendations of companies.&#160;
The following table reflects the recent historical trends for our credit
strength measures:</font></p>

<p style="margin:0in 0in .0001pt .05in;text-indent:.5in;"><font size="1" face="Times New Roman" style="font-size:4.0pt;">&nbsp;</font></p>

<table border="0" cellspacing="0" cellpadding="0" width="100%" style="border-collapse:collapse;width:100.0%;">
 <tr>
  <td width="26%" colspan="2" valign="top" style="border-bottom:none;border-left:solid windowtext 1.0pt;border-right:none;border-top:solid windowtext 1.0pt;padding:0in 0in 0in 0in;width:26.02%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="1%" valign="top" style="border-bottom:none;border-left:none;border-right:solid windowtext 1.0pt;border-top:solid windowtext 1.0pt;padding:0in 0in 0in 0in;width:1.92%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="11%" valign="top" style="border-bottom:solid windowtext 1.0pt;border-left:none;border-right:none;border-top:solid windowtext 1.0pt;padding:0in 0in 0in 0in;width:11.52%;">
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">Year to Date</font></p>
  </td>
  <td width="2%" valign="top" style="border:solid windowtext 1.0pt;border-left:none;padding:0in 0in 0in 0in;width:2.58%;">
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="57%" colspan="9" valign="top" style="border-bottom:solid windowtext 1.0pt;border-left:none;border-right:none;border-top:solid windowtext 1.0pt;padding:0in 0in 0in 0in;width:57.0%;">
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">Quarter Ended</font></p>
  </td>
  <td width="0%" valign="top" style="border:solid windowtext 1.0pt;border-left:none;padding:0in 0in 0in 0in;width:.96%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="26%" colspan="2" valign="top" style="border:none;border-left:solid windowtext 1.0pt;padding:0in 0in 0in 0in;width:26.02%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="1%" valign="top" style="border:none;border-right:solid windowtext 1.0pt;padding:0in 0in 0in 0in;width:1.92%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="11%" valign="top" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0in 0in 0in 0in;width:11.52%;">
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">6/30/10</font></p>
  </td>
  <td width="2%" valign="top" style="border-bottom:solid windowtext 1.0pt;border-left:none;border-right:solid windowtext 1.0pt;border-top:none;padding:0in 0in 0in 0in;width:2.58%;">
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="9%" valign="top" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0in 0in 0in 0in;width:9.0%;">
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">6/30/10</font></p>
  </td>
  <td width="3%" valign="top" style="border:none;padding:0in 0in 0in 0in;width:3.0%;">
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="9%" valign="top" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0in 0in 0in 0in;width:9.0%;">
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">3/31/10</font></p>
  </td>
  <td width="3%" valign="top" style="border:none;padding:0in 0in 0in 0in;width:3.0%;">
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="9%" valign="top" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0in 0in 0in 0in;width:9.0%;">
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">12/31/09</font></p>
  </td>
  <td width="3%" valign="top" style="border:none;padding:0in 0in 0in 0in;width:3.0%;">
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="9%" valign="top" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0in 0in 0in 0in;width:9.0%;">
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">9/30/09</font></p>
  </td>
  <td width="3%" valign="top" style="border:none;padding:0in 0in 0in 0in;width:3.0%;">
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="9%" valign="top" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0in 0in 0in 0in;width:9.0%;">
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">6/30/09</font></p>
  </td>
  <td width="0%" valign="top" style="border-bottom:solid windowtext 1.0pt;border-left:none;border-right:solid windowtext 1.0pt;border-top:none;padding:0in 0in 0in 0in;width:.96%;">
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="26%" colspan="2" valign="top" style="border:none;border-left:solid windowtext 1.0pt;padding:0in 0in 0in 0in;width:26.02%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">&nbsp;</font></p>
  </td>
  <td width="1%" valign="top" style="border:none;border-right:solid windowtext 1.0pt;padding:0in 0in 0in 0in;width:1.92%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">&nbsp;</font></p>
  </td>
  <td width="11%" valign="top" style="border:none;padding:0in 0in 0in 0in;width:11.52%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">&nbsp;</font></p>
  </td>
  <td width="2%" valign="top" style="border:none;border-right:solid windowtext 1.0pt;padding:0in 0in 0in 0in;width:2.58%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">&nbsp;</font></p>
  </td>
  <td width="9%" valign="top" style="border:none;padding:0in 0in 0in 0in;width:9.0%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">&nbsp;</font></p>
  </td>
  <td width="3%" valign="top" style="padding:0in 0in 0in 0in;width:3.0%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">&nbsp;</font></p>
  </td>
  <td width="9%" valign="top" style="padding:0in 0in 0in 0in;width:9.0%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">&nbsp;</font></p>
  </td>
  <td width="3%" valign="top" style="padding:0in 0in 0in 0in;width:3.0%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">&nbsp;</font></p>
  </td>
  <td width="9%" valign="top" style="padding:0in 0in 0in 0in;width:9.0%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">&nbsp;</font></p>
  </td>
  <td width="3%" valign="top" style="padding:0in 0in 0in 0in;width:3.0%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">&nbsp;</font></p>
  </td>
  <td width="9%" valign="top" style="padding:0in 0in 0in 0in;width:9.0%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">&nbsp;</font></p>
  </td>
  <td width="3%" valign="top" style="padding:0in 0in 0in 0in;width:3.0%;">
  <p style="margin:0in 0in .0001pt;"><b><font size="1" face="Times New Roman" style="font-size:9.0pt;font-weight:bold;">&nbsp;</font></b></p>
  </td>
  <td width="9%" valign="top" style="padding:0in 0in 0in 0in;width:9.0%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">&nbsp;</font></p>
  </td>
  <td width="0%" valign="top" style="border:none;border-right:solid windowtext 1.0pt;padding:0in 0in 0in 0in;width:.96%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="26%" colspan="2" valign="top" style="border:none;border-left:solid windowtext 1.0pt;padding:0in 0in 0in 0in;width:26.02%;">
  <p style="margin:0in 0in .0001pt .05in;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">Debt
  to book capitalization ratio </font></p>
  </td>
  <td width="1%" valign="top" style="border:none;border-right:solid windowtext 1.0pt;padding:0in 0in 0in 0in;width:1.92%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="11%" valign="top" style="border:none;padding:0in 0in 0in 0in;width:11.52%;">
  <p align="right" style="margin:0in .4in .0001pt 0in;text-align:right;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">8.9%</font></p>
  </td>
  <td width="2%" valign="top" style="border:none;border-right:solid windowtext 1.0pt;padding:0in 0in 0in 0in;width:2.58%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="9%" valign="top" style="border:none;padding:0in 0in 0in 0in;width:9.0%;">
  <p align="right" style="margin:0in .1in .0001pt 0in;text-align:right;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">8.9%</font></p>
  </td>
  <td width="3%" valign="top" style="padding:0in 0in 0in 0in;width:3.0%;">
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="1" face="Times New Roman" style="font-size:6.0pt;position:relative;top:-2.0pt;">(1)</font></p>
  </td>
  <td width="9%" valign="top" style="padding:0in 0in 0in 0in;width:9.0%;">
  <p align="right" style="margin:0in .1in .0001pt 0in;text-align:right;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">7.9%</font></p>
  </td>
  <td width="3%" valign="top" style="padding:0in 0in 0in 0in;width:3.0%;">
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="1" face="Times New Roman" style="font-size:6.0pt;position:relative;top:-2.0pt;">(1)</font></p>
  </td>
  <td width="9%" valign="top" style="padding:0in 0in 0in 0in;width:9.0%;">
  <p align="right" style="margin:0in .1in .0001pt 0in;text-align:right;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">5.3%</font></p>
  </td>
  <td width="3%" valign="top" style="padding:0in 0in 0in 0in;width:3.0%;">
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="1" face="Times New Roman" style="font-size:6.0pt;position:relative;top:-2.0pt;">(1)</font></p>
  </td>
  <td width="9%" valign="top" style="padding:0in 0in 0in 0in;width:9.0%;">
  <p align="right" style="margin:0in .1in .0001pt 0in;text-align:right;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">2.6%</font></p>
  </td>
  <td width="3%" valign="top" style="padding:0in 0in 0in 0in;width:3.0%;">
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="1" face="Times New Roman" style="font-size:6.0pt;position:relative;top:-2.0pt;">(6)</font></p>
  </td>
  <td width="9%" valign="top" style="padding:0in 0in 0in 0in;width:9.0%;">
  <p align="right" style="margin:0in .1in .0001pt 0in;text-align:right;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">5.3%</font></p>
  </td>
  <td width="0%" valign="top" style="border:none;border-right:solid windowtext 1.0pt;padding:0in 0in 0in 0in;width:.96%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="26%" colspan="2" valign="top" style="border:none;border-left:solid windowtext 1.0pt;padding:0in 0in 0in 0in;width:26.02%;">
  <p style="margin:0in 0in .0001pt .05in;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">Debt&nbsp;&amp;
  Preferred Stock to book capitalization ratio </font></p>
  </td>
  <td width="1%" valign="top" style="border:none;border-right:solid windowtext 1.0pt;padding:0in 0in 0in 0in;width:1.92%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="11%" valign="bottom" style="border:none;padding:0in 0in 0in 0in;width:11.52%;">
  <p align="right" style="margin:0in .4in .0001pt 0in;text-align:right;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">45.8%</font></p>
  </td>
  <td width="2%" valign="bottom" style="border:none;border-right:solid windowtext 1.0pt;padding:0in 0in 0in 0in;width:2.58%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="9%" valign="bottom" style="border:none;padding:0in 0in 0in 0in;width:9.0%;">
  <p align="right" style="margin:0in .1in .0001pt 0in;text-align:right;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">45.8%</font></p>
  </td>
  <td width="3%" valign="bottom" style="padding:0in 0in 0in 0in;width:3.0%;">
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="1" face="Times New Roman" style="font-size:6.0pt;position:relative;top:-2.0pt;">(1)</font></p>
  </td>
  <td width="9%" valign="bottom" style="padding:0in 0in 0in 0in;width:9.0%;">
  <p align="right" style="margin:0in .1in .0001pt 0in;text-align:right;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">45.2%</font></p>
  </td>
  <td width="3%" valign="bottom" style="padding:0in 0in 0in 0in;width:3.0%;">
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="1" face="Times New Roman" style="font-size:6.0pt;position:relative;top:-2.0pt;">(1)</font></p>
  </td>
  <td width="9%" valign="bottom" style="padding:0in 0in 0in 0in;width:9.0%;">
  <p align="right" style="margin:0in .1in .0001pt 0in;text-align:right;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">44.2%</font></p>
  </td>
  <td width="3%" valign="bottom" style="padding:0in 0in 0in 0in;width:3.0%;">
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="1" face="Times New Roman" style="font-size:6.0pt;position:relative;top:-2.0pt;">(1)</font></p>
  </td>
  <td width="9%" valign="bottom" style="padding:0in 0in 0in 0in;width:9.0%;">
  <p align="right" style="margin:0in .1in .0001pt 0in;text-align:right;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">42.6%</font></p>
  </td>
  <td width="3%" valign="bottom" style="padding:0in 0in 0in 0in;width:3.0%;">
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="1" face="Times New Roman" style="font-size:6.0pt;position:relative;top:-2.0pt;">(6)</font></p>
  </td>
  <td width="9%" valign="bottom" style="padding:0in 0in 0in 0in;width:9.0%;">
  <p align="right" style="margin:0in .1in .0001pt 0in;text-align:right;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">44.1%</font></p>
  </td>
  <td width="0%" valign="bottom" style="border:none;border-right:solid windowtext 1.0pt;padding:0in 0in 0in 0in;width:.96%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="26%" colspan="2" valign="top" style="border:none;border-left:solid windowtext 1.0pt;padding:0in 0in 0in 0in;width:26.02%;">
  <p style="margin:0in 0in .0001pt .05in;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">&nbsp;</font></p>
  </td>
  <td width="1%" valign="top" style="border:none;border-right:solid windowtext 1.0pt;padding:0in 0in 0in 0in;width:1.92%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">&nbsp;</font></p>
  </td>
  <td width="11%" valign="bottom" style="border:none;padding:0in 0in 0in 0in;width:11.52%;">
  <p align="right" style="margin:0in .4in .0001pt 0in;text-align:right;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">&nbsp;</font></p>
  </td>
  <td width="2%" valign="bottom" style="border:none;border-right:solid windowtext 1.0pt;padding:0in 0in 0in 0in;width:2.58%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">&nbsp;</font></p>
  </td>
  <td width="9%" valign="bottom" style="border:none;padding:0in 0in 0in 0in;width:9.0%;">
  <p align="right" style="margin:0in .1in .0001pt 0in;text-align:right;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">&nbsp;</font></p>
  </td>
  <td width="3%" valign="bottom" style="padding:0in 0in 0in 0in;width:3.0%;">
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><sup><font size="1" face="Times New Roman" style="font-size:9.0pt;">&nbsp;</font></sup></p>
  </td>
  <td width="9%" valign="bottom" style="padding:0in 0in 0in 0in;width:9.0%;">
  <p align="right" style="margin:0in .1in .0001pt 0in;text-align:right;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">&nbsp;</font></p>
  </td>
  <td width="3%" valign="bottom" style="padding:0in 0in 0in 0in;width:3.0%;">
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><sup><font size="1" face="Times New Roman" style="font-size:9.0pt;">&nbsp;</font></sup></p>
  </td>
  <td width="9%" valign="bottom" style="padding:0in 0in 0in 0in;width:9.0%;">
  <p align="right" style="margin:0in .1in .0001pt 0in;text-align:right;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">&nbsp;</font></p>
  </td>
  <td width="3%" valign="bottom" style="padding:0in 0in 0in 0in;width:3.0%;">
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><sup><font size="1" face="Times New Roman" style="font-size:9.0pt;">&nbsp;</font></sup></p>
  </td>
  <td width="9%" valign="bottom" style="padding:0in 0in 0in 0in;width:9.0%;">
  <p align="right" style="margin:0in .1in .0001pt 0in;text-align:right;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">&nbsp;</font></p>
  </td>
  <td width="3%" valign="bottom" style="padding:0in 0in 0in 0in;width:3.0%;">
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><sup><font size="1" face="Times New Roman" style="font-size:9.0pt;">&nbsp;</font></sup></p>
  </td>
  <td width="9%" valign="bottom" style="padding:0in 0in 0in 0in;width:9.0%;">
  <p align="right" style="margin:0in .1in .0001pt 0in;text-align:right;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">&nbsp;</font></p>
  </td>
  <td width="0%" valign="bottom" style="border:none;border-right:solid windowtext 1.0pt;padding:0in 0in 0in 0in;width:.96%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="26%" colspan="2" valign="top" style="border:none;border-left:solid windowtext 1.0pt;padding:0in 0in 0in 0in;width:26.02%;">
  <p style="margin:0in 0in .0001pt .05in;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">Debt
  to market capitalization ratio </font></p>
  </td>
  <td width="1%" valign="top" style="border:none;border-right:solid windowtext 1.0pt;padding:0in 0in 0in 0in;width:1.92%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="11%" valign="bottom" style="border:none;padding:0in 0in 0in 0in;width:11.52%;">
  <p align="right" style="margin:0in .4in .0001pt 0in;text-align:right;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">5.5%</font></p>
  </td>
  <td width="2%" valign="bottom" style="border:none;border-right:solid windowtext 1.0pt;padding:0in 0in 0in 0in;width:2.58%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="9%" valign="bottom" style="border:none;padding:0in 0in 0in 0in;width:9.0%;">
  <p align="right" style="margin:0in .1in .0001pt 0in;text-align:right;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">5.5%</font></p>
  </td>
  <td width="3%" valign="bottom" style="padding:0in 0in 0in 0in;width:3.0%;">
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="1" face="Times New Roman" style="font-size:6.0pt;position:relative;top:-2.0pt;">(1)</font></p>
  </td>
  <td width="9%" valign="bottom" style="padding:0in 0in 0in 0in;width:9.0%;">
  <p align="right" style="margin:0in .1in .0001pt 0in;text-align:right;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">4.6%</font></p>
  </td>
  <td width="3%" valign="bottom" style="padding:0in 0in 0in 0in;width:3.0%;">
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="1" face="Times New Roman" style="font-size:6.0pt;position:relative;top:-2.0pt;">(1)</font></p>
  </td>
  <td width="9%" valign="bottom" style="padding:0in 0in 0in 0in;width:9.0%;">
  <p align="right" style="margin:0in .1in .0001pt 0in;text-align:right;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">3.0%</font></p>
  </td>
  <td width="3%" valign="bottom" style="padding:0in 0in 0in 0in;width:3.0%;">
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="1" face="Times New Roman" style="font-size:6.0pt;position:relative;top:-2.0pt;">(1)</font></p>
  </td>
  <td width="9%" valign="bottom" style="padding:0in 0in 0in 0in;width:9.0%;">
  <p align="right" style="margin:0in .1in .0001pt 0in;text-align:right;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">1.6%</font></p>
  </td>
  <td width="3%" valign="bottom" style="padding:0in 0in 0in 0in;width:3.0%;">
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="1" face="Times New Roman" style="font-size:6.0pt;position:relative;top:-2.0pt;">(6)</font></p>
  </td>
  <td width="9%" valign="bottom" style="padding:0in 0in 0in 0in;width:9.0%;">
  <p align="right" style="margin:0in .1in .0001pt 0in;text-align:right;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">3.8%</font></p>
  </td>
  <td width="0%" valign="bottom" style="border:none;border-right:solid windowtext 1.0pt;padding:0in 0in 0in 0in;width:.96%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="26%" colspan="2" valign="top" style="border:none;border-left:solid windowtext 1.0pt;padding:0in 0in 0in 0in;width:26.02%;">
  <p style="margin:0in 0in .0001pt .05in;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">Debt&nbsp;&amp;
  Preferred Stock to market capitalization ratio </font></p>
  </td>
  <td width="1%" valign="top" style="border:none;border-right:solid windowtext 1.0pt;padding:0in 0in 0in 0in;width:1.92%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="11%" valign="bottom" style="border:none;padding:0in 0in 0in 0in;width:11.52%;">
  <p align="right" style="margin:0in .4in .0001pt 0in;text-align:right;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">28.6%</font></p>
  </td>
  <td width="2%" valign="bottom" style="border:none;border-right:solid windowtext 1.0pt;padding:0in 0in 0in 0in;width:2.58%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="9%" valign="bottom" style="border:none;padding:0in 0in 0in 0in;width:9.0%;">
  <p align="right" style="margin:0in .1in .0001pt 0in;text-align:right;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">28.6%</font></p>
  </td>
  <td width="3%" valign="bottom" style="padding:0in 0in 0in 0in;width:3.0%;">
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="1" face="Times New Roman" style="font-size:6.0pt;position:relative;top:-2.0pt;">(1)</font></p>
  </td>
  <td width="9%" valign="bottom" style="padding:0in 0in 0in 0in;width:9.0%;">
  <p align="right" style="margin:0in .1in .0001pt 0in;text-align:right;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">26.1%</font></p>
  </td>
  <td width="3%" valign="bottom" style="padding:0in 0in 0in 0in;width:3.0%;">
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="1" face="Times New Roman" style="font-size:6.0pt;position:relative;top:-2.0pt;">(1)</font></p>
  </td>
  <td width="9%" valign="bottom" style="padding:0in 0in 0in 0in;width:9.0%;">
  <p align="right" style="margin:0in .1in .0001pt 0in;text-align:right;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">25.1%</font></p>
  </td>
  <td width="3%" valign="bottom" style="padding:0in 0in 0in 0in;width:3.0%;">
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="1" face="Times New Roman" style="font-size:6.0pt;position:relative;top:-2.0pt;">(4)</font></p>
  </td>
  <td width="9%" valign="bottom" style="padding:0in 0in 0in 0in;width:9.0%;">
  <p align="right" style="margin:0in .1in .0001pt 0in;text-align:right;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">25.3%</font></p>
  </td>
  <td width="3%" valign="bottom" style="padding:0in 0in 0in 0in;width:3.0%;">
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="1" face="Times New Roman" style="font-size:6.0pt;position:relative;top:-2.0pt;">(6)</font></p>
  </td>
  <td width="9%" valign="bottom" style="padding:0in 0in 0in 0in;width:9.0%;">
  <p align="right" style="margin:0in .1in .0001pt 0in;text-align:right;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">29.5%</font></p>
  </td>
  <td width="0%" valign="bottom" style="border:none;border-right:solid windowtext 1.0pt;padding:0in 0in 0in 0in;width:.96%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="26%" colspan="2" valign="top" style="border:none;border-left:solid windowtext 1.0pt;padding:0in 0in 0in 0in;width:26.02%;">
  <p style="margin:0in 0in .0001pt .05in;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">&nbsp;</font></p>
  </td>
  <td width="1%" valign="top" style="border:none;border-right:solid windowtext 1.0pt;padding:0in 0in 0in 0in;width:1.92%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">&nbsp;</font></p>
  </td>
  <td width="11%" valign="top" style="border:none;padding:0in 0in 0in 0in;width:11.52%;">
  <p align="right" style="margin:0in .4in .0001pt 0in;text-align:right;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">&nbsp;</font></p>
  </td>
  <td width="2%" valign="top" style="border:none;border-right:solid windowtext 1.0pt;padding:0in 0in 0in 0in;width:2.58%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">&nbsp;</font></p>
  </td>
  <td width="9%" valign="top" style="border:none;padding:0in 0in 0in 0in;width:9.0%;">
  <p align="right" style="margin:0in .1in .0001pt 0in;text-align:right;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">&nbsp;</font></p>
  </td>
  <td width="3%" valign="top" style="padding:0in 0in 0in 0in;width:3.0%;">
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><sup><font size="1" face="Times New Roman" style="font-size:9.0pt;">&nbsp;</font></sup></p>
  </td>
  <td width="9%" valign="top" style="padding:0in 0in 0in 0in;width:9.0%;">
  <p align="right" style="margin:0in .1in .0001pt 0in;text-align:right;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">&nbsp;</font></p>
  </td>
  <td width="3%" valign="top" style="padding:0in 0in 0in 0in;width:3.0%;">
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><sup><font size="1" face="Times New Roman" style="font-size:9.0pt;">&nbsp;</font></sup></p>
  </td>
  <td width="9%" valign="top" style="padding:0in 0in 0in 0in;width:9.0%;">
  <p align="right" style="margin:0in .1in .0001pt 0in;text-align:right;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">&nbsp;</font></p>
  </td>
  <td width="3%" valign="top" style="padding:0in 0in 0in 0in;width:3.0%;">
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><sup><font size="1" face="Times New Roman" style="font-size:9.0pt;">&nbsp;</font></sup></p>
  </td>
  <td width="9%" valign="top" style="padding:0in 0in 0in 0in;width:9.0%;">
  <p align="right" style="margin:0in .1in .0001pt 0in;text-align:right;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">&nbsp;</font></p>
  </td>
  <td width="3%" valign="top" style="padding:0in 0in 0in 0in;width:3.0%;">
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><sup><font size="1" face="Times New Roman" style="font-size:9.0pt;">&nbsp;</font></sup></p>
  </td>
  <td width="9%" valign="top" style="padding:0in 0in 0in 0in;width:9.0%;">
  <p align="right" style="margin:0in .1in .0001pt 0in;text-align:right;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">&nbsp;</font></p>
  </td>
  <td width="0%" valign="top" style="border:none;border-right:solid windowtext 1.0pt;padding:0in 0in 0in 0in;width:.96%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="26%" colspan="2" valign="top" style="border:none;border-left:solid windowtext 1.0pt;padding:0in 0in 0in 0in;width:26.02%;">
  <p style="margin:0in 0in .0001pt .05in;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">Interest
  coverage ratio</font><font size="1" style="font-size:6.0pt;position:relative;top:-2.0pt;">(8)</font></p>
  </td>
  <td width="1%" valign="top" style="border:none;border-right:solid windowtext 1.0pt;padding:0in 0in 0in 0in;width:1.92%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="11%" valign="top" style="border:none;padding:0in 0in 0in 0in;width:11.52%;">
  <p align="right" style="margin:0in .4in .0001pt 0in;text-align:right;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">37.7x</font></p>
  </td>
  <td width="2%" valign="top" style="border:none;border-right:solid windowtext 1.0pt;padding:0in 0in 0in 0in;width:2.58%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="9%" valign="top" style="border:none;padding:0in 0in 0in 0in;width:9.0%;">
  <p align="right" style="margin:0in .1in .0001pt 0in;text-align:right;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">38.3x</font></p>
  </td>
  <td width="3%" valign="top" style="padding:0in 0in 0in 0in;width:3.0%;">
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="1" face="Times New Roman" style="font-size:6.0pt;position:relative;top:-2.0pt;">(2)</font></p>
  </td>
  <td width="9%" valign="top" style="padding:0in 0in 0in 0in;width:9.0%;">
  <p align="right" style="margin:0in .1in .0001pt 0in;text-align:right;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">37.0x</font></p>
  </td>
  <td width="3%" valign="top" style="padding:0in 0in 0in 0in;width:3.0%;">
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="1" face="Times New Roman" style="font-size:6.0pt;position:relative;top:-2.0pt;">(3)</font></p>
  </td>
  <td width="9%" valign="top" style="padding:0in 0in 0in 0in;width:9.0%;">
  <p align="right" style="margin:0in .1in .0001pt 0in;text-align:right;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">40.8x</font></p>
  </td>
  <td width="3%" valign="top" style="padding:0in 0in 0in 0in;width:3.0%;">
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="1" face="Times New Roman" style="font-size:6.0pt;position:relative;top:-2.0pt;">(5)</font></p>
  </td>
  <td width="9%" valign="top" style="padding:0in 0in 0in 0in;width:9.0%;">
  <p align="right" style="margin:0in .1in .0001pt 0in;text-align:right;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">45.2x</font></p>
  </td>
  <td width="3%" valign="top" style="padding:0in 0in 0in 0in;width:3.0%;">
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="1" face="Times New Roman" style="font-size:6.0pt;position:relative;top:-2.0pt;">(7)</font></p>
  </td>
  <td width="9%" valign="top" style="padding:0in 0in 0in 0in;width:9.0%;">
  <p align="right" style="margin:0in .1in .0001pt 0in;text-align:right;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">18.7x</font></p>
  </td>
  <td width="0%" valign="top" style="border:none;border-right:solid windowtext 1.0pt;padding:0in 0in 0in 0in;width:.96%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="26%" colspan="2" valign="top" style="border:none;border-left:solid windowtext 1.0pt;padding:0in 0in 0in 0in;width:26.02%;">
  <p style="margin:0in 0in .0001pt .05in;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">Fixed
  charge coverage ratio</font><font size="1" style="font-size:6.0pt;position:relative;top:-2.0pt;">(8)</font></p>
  </td>
  <td width="1%" valign="top" style="border:none;border-right:solid windowtext 1.0pt;padding:0in 0in 0in 0in;width:1.92%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="11%" valign="top" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0in 0in 0in 0in;width:11.52%;">
  <p align="right" style="margin:0in .4in .0001pt 0in;text-align:right;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">3.7x</font></p>
  </td>
  <td width="2%" valign="top" style="border-bottom:solid windowtext 1.0pt;border-left:none;border-right:solid windowtext 1.0pt;border-top:none;padding:0in 0in 0in 0in;width:2.58%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="9%" valign="top" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0in 0in 0in 0in;width:9.0%;">
  <p align="right" style="margin:0in .1in .0001pt 0in;text-align:right;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">3.8x</font></p>
  </td>
  <td width="3%" valign="top" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0in 0in 0in 0in;width:3.0%;">
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="1" face="Times New Roman" style="font-size:6.0pt;position:relative;top:-2.0pt;">(2)</font></p>
  </td>
  <td width="9%" valign="top" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0in 0in 0in 0in;width:9.0%;">
  <p align="right" style="margin:0in .1in .0001pt 0in;text-align:right;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">3.5x</font></p>
  </td>
  <td width="3%" valign="top" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0in 0in 0in 0in;width:3.0%;">
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="1" face="Times New Roman" style="font-size:6.0pt;position:relative;top:-2.0pt;">(3)</font></p>
  </td>
  <td width="9%" valign="top" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0in 0in 0in 0in;width:9.0%;">
  <p align="right" style="margin:0in .1in .0001pt 0in;text-align:right;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">3.6x</font></p>
  </td>
  <td width="3%" valign="top" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0in 0in 0in 0in;width:3.0%;">
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="1" face="Times New Roman" style="font-size:6.0pt;position:relative;top:-2.0pt;">(5)</font></p>
  </td>
  <td width="9%" valign="top" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0in 0in 0in 0in;width:9.0%;">
  <p align="right" style="margin:0in .1in .0001pt 0in;text-align:right;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">3.7x</font></p>
  </td>
  <td width="3%" valign="top" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0in 0in 0in 0in;width:3.0%;">
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="1" face="Times New Roman" style="font-size:6.0pt;position:relative;top:-2.0pt;">(7)</font></p>
  </td>
  <td width="9%" valign="top" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0in 0in 0in 0in;width:9.0%;">
  <p align="right" style="margin:0in .1in .0001pt 0in;text-align:right;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">3.3x</font></p>
  </td>
  <td width="0%" valign="top" style="border-bottom:solid windowtext 1.0pt;border-left:none;border-right:solid windowtext 1.0pt;border-top:none;padding:0in 0in 0in 0in;width:.96%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="99%" colspan="14" valign="top" style="border:none;border-left:solid windowtext 1.0pt;padding:0in 0in 0in 0in;width:99.04%;">
  <p style="margin:0in 0in .0001pt 10.0pt;text-indent:-10.0pt;"><font size="1" face="Times New Roman" style="font-size:7.0pt;">&nbsp;</font></p>
  </td>
  <td width="0%" valign="top" style="border:none;border-right:solid windowtext 1.0pt;padding:0in 0in 0in 0in;width:.96%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:7.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="99%" colspan="14" valign="top" style="border:none;border-left:solid windowtext 1.0pt;padding:0in 0in 0in 0in;width:99.04%;">
  <div style="margin:0in 0in .0001pt 10.0pt;text-indent:-10.0pt;"><hr size="1" width="25%" noshade color="black" align="left"></div>
  <p style="margin:0in 0in .0001pt 10.0pt;text-indent:-10.0pt;"></p>
  </td>
  <td width="0%" valign="top" style="border:none;border-right:solid windowtext 1.0pt;padding:0in 0in 0in 0in;width:.96%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="4%" valign="top" style="border:none;border-left:solid windowtext 1.0pt;padding:0in 0in 0in 0in;width:4.76%;">
  <p style="margin:0in 0in .0001pt .05in;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">(1)</font></p>
  </td>
  <td width="94%" colspan="13" valign="top" style="padding:0in 0in 0in 0in;width:94.28%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">Increase primarily due
  to the increase in bank borrowing.</font></p>
  </td>
  <td width="0%" valign="top" style="border:none;border-right:solid windowtext 1.0pt;padding:0in 0in 0in 0in;width:.96%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="4%" valign="top" style="border:none;border-left:solid windowtext 1.0pt;padding:0in 0in 0in 0in;width:4.76%;">
  <p style="margin:0in 0in .0001pt .05in;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">(2)</font></p>
  </td>
  <td width="94%" colspan="13" valign="top" style="padding:0in 0in 0in 0in;width:94.28%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">Increase primarily due
  to additional net income generated from acquisitions in 2009 and 2010.</font></p>
  </td>
  <td width="0%" valign="top" style="border:none;border-right:solid windowtext 1.0pt;padding:0in 0in 0in 0in;width:.96%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="4%" valign="top" style="border:none;border-left:solid windowtext 1.0pt;padding:0in 0in 0in 0in;width:4.76%;">
  <p style="margin:0in 0in .0001pt .05in;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">(3)</font></p>
  </td>
  <td width="94%" colspan="13" valign="top" style="padding:0in 0in 0in 0in;width:94.28%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">Decrease primarily due
  to the increase of $0.9 million in provision for doubtful accounts related to
  a mortgage loan secured by a private school property located in Minnesota.
  See <i>Item 1. FINANCIAL STATEMENTS-Note 2.Real Estate
  Investments</i> for further discussion.</font></p>
  </td>
  <td width="0%" valign="top" style="border:none;border-right:solid windowtext 1.0pt;padding:0in 0in 0in 0in;width:.96%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="4%" valign="top" style="border:none;border-left:solid windowtext 1.0pt;padding:0in 0in 0in 0in;width:4.76%;">
  <p style="margin:0in 0in .0001pt .05in;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">(4)</font></p>
  </td>
  <td width="94%" colspan="13" valign="top" style="padding:0in 0in 0in 0in;width:94.28%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">Decrease primarily due
  to the increase in market capitalization partially offset by the increase in
  bank borrowing.</font></p>
  </td>
  <td width="0%" valign="top" style="border:none;border-right:solid windowtext 1.0pt;padding:0in 0in 0in 0in;width:.96%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="4%" valign="top" style="border:none;border-left:solid windowtext 1.0pt;padding:0in 0in 0in 0in;width:4.76%;">
  <p style="margin:0in 0in .0001pt .05in;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">(5)</font></p>
  </td>
  <td width="94%" colspan="13" valign="top" style="padding:0in 0in 0in 0in;width:94.28%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">Decrease primarily due
  to the increase in operating and other expenses relating to transaction costs
  incurred for the acquisition of three assisted living properties in
  November&nbsp;of 2009.</font></p>
  </td>
  <td width="0%" valign="top" style="border:none;border-right:solid windowtext 1.0pt;padding:0in 0in 0in 0in;width:.96%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="4%" valign="top" style="border:none;border-left:solid windowtext 1.0pt;padding:0in 0in 0in 0in;width:4.76%;">
  <p style="margin:0in 0in .0001pt .05in;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">(6)</font></p>
  </td>
  <td width="94%" colspan="13" valign="top" style="padding:0in 0in 0in 0in;width:94.28%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">Decrease primarily due
  to the repayment of $23.9 million of mortgage debt in June&nbsp;and
  July&nbsp;of 2009.</font></p>
  </td>
  <td width="0%" valign="top" style="border:none;border-right:solid windowtext 1.0pt;padding:0in 0in 0in 0in;width:.96%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="4%" valign="top" style="border:none;border-left:solid windowtext 1.0pt;padding:0in 0in 0in 0in;width:4.76%;">
  <p style="margin:0in 0in .0001pt .05in;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">(7)</font></p>
  </td>
  <td width="94%" colspan="13" valign="top" style="padding:0in 0in 0in 0in;width:94.28%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">Increase primarily due
  to the decrease in interest expense relating to the repayment of mortgage
  debt.</font></p>
  </td>
  <td width="0%" valign="top" style="border:none;border-right:solid windowtext 1.0pt;padding:0in 0in 0in 0in;width:.96%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="4%" valign="top" style="border:none;border-left:solid windowtext 1.0pt;padding:0in 0in 0in 0in;width:4.76%;">
  <p style="margin:0in 0in .0001pt .05in;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">(8)</font></p>
  </td>
  <td width="94%" colspan="13" valign="top" style="padding:0in 0in 0in 0in;width:94.28%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">In calculating our interest coverage and fixed charge
  coverage ratios above, we use EBITDA, which is a financial measure not
  derived in accordance with U.S. generally accepted accounting principles
  (non-GAAP financial measure). Our coverage ratios indicate our ability to
  service interest expense and fixed charges (interest plus preferred
  dividends). Leverage ratios and coverage ratios are widely used by investors,
  analysts and rating agencies in the valuation, comparison, rating and
  investment recommendations of companies. EBITDA is not an alternative to net
  income, operating income, income from continuing operations or cash flows
  from operating activities as calculated and presented in accordance with U.S.
  GAAP. You should not rely on EBITDA as a substitute for any such U.S. GAAP
  financial measures or consider it in isolation, for the purpose of analyzing
  our financial performance, financial position or cash flows. Net income is
  the most directly comparable GAAP measure to EBITDA. Below are a
  reconciliation of net income to EBITDA and the calculation of the interest
  coverage and fixed charge coverage ratios disclosed above:</font></p>
  </td>
  <td width="0%" valign="top" style="border:none;border-right:solid windowtext 1.0pt;padding:0in 0in 0in 0in;width:.96%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="99%" colspan="14" valign="top" style="border:none;border-left:solid windowtext 1.0pt;padding:0in 0in 0in 0in;width:99.04%;">
  <p style="margin:0in 0in .0001pt 10.0pt;text-indent:-10.0pt;"><font size="1" face="Times New Roman" style="font-size:6.0pt;">&nbsp;</font></p>
  </td>
  <td width="0%" valign="top" style="border:none;border-right:solid windowtext 1.0pt;padding:0in 0in 0in 0in;width:.96%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:6.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="26%" colspan="2" valign="bottom" style="border:none;border-left:solid windowtext 1.0pt;padding:0in 0in 0in 0in;width:26.02%;">
  <p style="margin:0in 0in .0001pt 20.0pt;text-indent:-10.0pt;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="1%" valign="bottom" style="border:none;border-right:solid windowtext 1.0pt;padding:0in 0in 0in 0in;width:1.92%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="11%" valign="bottom" style="border-bottom:solid windowtext 1.0pt;border-left:none;border-right:none;border-top:solid windowtext 1.0pt;padding:0in 0in 0in 0in;width:11.52%;">
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">&nbsp;&nbsp;&nbsp;Year
  to Date</font></p>
  </td>
  <td width="2%" valign="bottom" style="border:solid windowtext 1.0pt;border-left:none;padding:0in 0in 0in 0in;width:2.58%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="57%" colspan="9" valign="bottom" style="border-bottom:solid windowtext 1.0pt;border-left:none;border-right:none;border-top:solid windowtext 1.0pt;padding:0in 0in 0in 0in;width:57.0%;">
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">Quarter Ended</font></p>
  </td>
  <td width="0%" valign="bottom" style="border:solid windowtext 1.0pt;border-left:none;padding:0in 0in 0in 0in;width:.96%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="26%" colspan="2" valign="bottom" style="border:none;border-left:solid windowtext 1.0pt;padding:0in 0in 0in 0in;width:26.02%;">
  <p style="margin:0in 0in .0001pt 10.0pt;text-indent:-10.0pt;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="1%" valign="bottom" style="border:none;border-right:solid windowtext 1.0pt;padding:0in 0in 0in 0in;width:1.92%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="11%" valign="bottom" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0in 0in 0in 0in;width:11.52%;">
  <p align="center" style="margin:0in 0in .0001pt 10.0pt;text-align:center;text-indent:-10.0pt;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">&nbsp;&nbsp;&nbsp;6/30/10</font></p>
  </td>
  <td width="2%" valign="bottom" style="border-bottom:solid windowtext 1.0pt;border-left:none;border-right:solid windowtext 1.0pt;border-top:none;padding:0in 0in 0in 0in;width:2.58%;">
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="9%" valign="bottom" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0in 0in 0in 0in;width:9.0%;">
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">6/30/10</font></p>
  </td>
  <td width="3%" valign="bottom" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0in 0in 0in 0in;width:3.0%;">
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="9%" valign="bottom" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0in 0in 0in 0in;width:9.0%;">
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">3/31/10</font></p>
  </td>
  <td width="3%" valign="bottom" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0in 0in 0in 0in;width:3.0%;">
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="9%" valign="bottom" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0in 0in 0in 0in;width:9.0%;">
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">12/31/09</font></p>
  </td>
  <td width="3%" valign="bottom" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0in 0in 0in 0in;width:3.0%;">
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="9%" valign="bottom" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0in 0in 0in 0in;width:9.0%;">
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">9/30/09</font></p>
  </td>
  <td width="3%" valign="bottom" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0in 0in 0in 0in;width:3.0%;">
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="9%" valign="bottom" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0in 0in 0in 0in;width:9.0%;">
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">6/30/09</font></p>
  </td>
  <td width="0%" valign="bottom" style="border-bottom:solid windowtext 1.0pt;border-left:none;border-right:solid windowtext 1.0pt;border-top:none;padding:0in 0in 0in 0in;width:.96%;">
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="26%" colspan="2" valign="bottom" style="border:none;border-left:solid windowtext 1.0pt;padding:0in 0in 0in 0in;width:26.02%;">
  <p style="margin:0in 0in .0001pt 13.7pt;text-indent:-10.1pt;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">&nbsp;</font></p>
  </td>
  <td width="1%" valign="bottom" style="border:none;border-right:solid windowtext 1.0pt;padding:0in 0in 0in 0in;width:1.92%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">&nbsp;</font></p>
  </td>
  <td width="11%" valign="bottom" style="border:none;padding:0in 0in 0in 0in;width:11.52%;">
  <p align="right" style="margin:0in .1in .0001pt 0in;text-align:right;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">&nbsp;</font></p>
  </td>
  <td width="2%" valign="bottom" style="border:none;border-right:solid windowtext 1.0pt;padding:0in 0in 0in 0in;width:2.58%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">&nbsp;</font></p>
  </td>
  <td width="9%" valign="bottom" style="border:none;padding:0in 0in 0in 0in;width:9.0%;">
  <p align="right" style="margin:0in 9.35pt .0001pt 0in;text-align:right;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">&nbsp;</font></p>
  </td>
  <td width="3%" valign="bottom" style="border:none;padding:0in 0in 0in 0in;width:3.0%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">&nbsp;</font></p>
  </td>
  <td width="9%" valign="bottom" style="border:none;padding:0in 0in 0in 0in;width:9.0%;">
  <p align="right" style="margin:0in .1in .0001pt 0in;text-align:right;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">&nbsp;</font></p>
  </td>
  <td width="3%" valign="bottom" style="border:none;padding:0in 0in 0in 0in;width:3.0%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">&nbsp;</font></p>
  </td>
  <td width="9%" valign="bottom" style="border:none;padding:0in 0in 0in 0in;width:9.0%;">
  <p align="right" style="margin:0in .1in .0001pt 0in;text-align:right;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">&nbsp;</font></p>
  </td>
  <td width="3%" valign="bottom" style="border:none;padding:0in 0in 0in 0in;width:3.0%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">&nbsp;</font></p>
  </td>
  <td width="9%" valign="bottom" style="border:none;padding:0in 0in 0in 0in;width:9.0%;">
  <p align="right" style="margin:0in 9.35pt .0001pt 0in;text-align:right;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">&nbsp;</font></p>
  </td>
  <td width="3%" valign="bottom" style="border:none;padding:0in 0in 0in 0in;width:3.0%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">&nbsp;</font></p>
  </td>
  <td width="9%" valign="bottom" style="border:none;padding:0in 0in 0in 0in;width:9.0%;">
  <p align="right" style="margin:0in .15in .0001pt 0in;text-align:right;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">&nbsp;</font></p>
  </td>
  <td width="0%" valign="bottom" style="border:none;border-right:solid windowtext 1.0pt;padding:0in 0in 0in 0in;width:.96%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="26%" colspan="2" valign="bottom" style="border:none;border-left:solid windowtext 1.0pt;padding:0in 0in 0in 0in;width:26.02%;">
  <p style="margin:0in 0in .0001pt 13.7pt;text-indent:-10.1pt;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">Net
  income</font></p>
  </td>
  <td width="1%" valign="bottom" style="border:none;border-right:solid windowtext 1.0pt;padding:0in 0in 0in 0in;width:1.92%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="11%" valign="bottom" style="border:none;padding:0in 0in 0in 0in;width:11.52%;">
  <p align="right" style="margin:0in 1.45pt .0001pt 0in;text-align:right;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">$22,200</font></p>
  </td>
  <td width="2%" valign="bottom" style="border:none;border-right:solid windowtext 1.0pt;padding:0in 0in 0in 0in;width:2.58%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="9%" valign="bottom" style="border:none;padding:0in 0in 0in 0in;width:9.0%;">
  <p align="right" style="margin:0in 9.35pt .0001pt 0in;text-align:right;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">$11,630</font></p>
  </td>
  <td width="3%" valign="bottom" style="padding:0in 0in 0in 0in;width:3.0%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="9%" valign="bottom" style="padding:0in 0in 0in 0in;width:9.0%;">
  <p align="right" style="margin:0in .1in .0001pt 0in;text-align:right;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">$10,570</font></p>
  </td>
  <td width="3%" valign="bottom" style="padding:0in 0in 0in 0in;width:3.0%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="9%" valign="bottom" style="padding:0in 0in 0in 0in;width:9.0%;">
  <p align="right" style="margin:0in .1in .0001pt 0in;text-align:right;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">$11,056</font></p>
  </td>
  <td width="3%" valign="bottom" style="padding:0in 0in 0in 0in;width:3.0%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="9%" valign="bottom" style="padding:0in 0in 0in 0in;width:9.0%;">
  <p align="right" style="margin:0in 9.35pt .0001pt 0in;text-align:right;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">$11,326</font></p>
  </td>
  <td width="3%" valign="bottom" style="padding:0in 0in 0in 0in;width:3.0%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="9%" valign="bottom" style="padding:0in 0in 0in 0in;width:9.0%;">
  <p align="right" style="margin:0in .15in .0001pt 0in;text-align:right;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">$10,740</font></p>
  </td>
  <td width="0%" valign="bottom" style="border:none;border-right:solid windowtext 1.0pt;padding:0in 0in 0in 0in;width:.96%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="26%" colspan="2" valign="bottom" style="border:none;border-left:solid windowtext 1.0pt;padding:0in 0in 0in 0in;width:26.02%;">
  <p style="margin:0in 0in .0001pt 20.0pt;text-indent:-10.0pt;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">Add:
  Interest Expense</font></p>
  </td>
  <td width="1%" valign="bottom" style="border:none;border-right:solid windowtext 1.0pt;padding:0in 0in 0in 0in;width:1.92%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="11%" valign="bottom" style="border:none;padding:0in 0in 0in 0in;width:11.52%;">
  <p align="right" style="margin:0in 1.45pt .0001pt 0in;text-align:right;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">820</font></p>
  </td>
  <td width="2%" valign="bottom" style="border:none;border-right:solid windowtext 1.0pt;padding:0in 0in 0in 0in;width:2.58%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="9%" valign="bottom" style="border:none;padding:0in 0in 0in 0in;width:9.0%;">
  <p align="right" style="margin:0in 9.35pt .0001pt 0in;text-align:right;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">419</font></p>
  </td>
  <td width="3%" valign="bottom" style="padding:0in 0in 0in 0in;width:3.0%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="9%" valign="bottom" style="padding:0in 0in 0in 0in;width:9.0%;">
  <p align="right" style="margin:0in .1in .0001pt 0in;text-align:right;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">401</font></p>
  </td>
  <td width="3%" valign="bottom" style="padding:0in 0in 0in 0in;width:3.0%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="9%" valign="bottom" style="padding:0in 0in 0in 0in;width:9.0%;">
  <p align="right" style="margin:0in .1in .0001pt 0in;text-align:right;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">372</font></p>
  </td>
  <td width="3%" valign="bottom" style="padding:0in 0in 0in 0in;width:3.0%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="9%" valign="bottom" style="padding:0in 0in 0in 0in;width:9.0%;">
  <p align="right" style="margin:0in 9.35pt .0001pt 0in;text-align:right;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">340</font></p>
  </td>
  <td width="3%" valign="bottom" style="padding:0in 0in 0in 0in;width:3.0%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="9%" valign="bottom" style="padding:0in 0in 0in 0in;width:9.0%;">
  <p align="right" style="margin:0in .15in .0001pt 0in;text-align:right;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">814</font></p>
  </td>
  <td width="0%" valign="bottom" style="border:none;border-right:solid windowtext 1.0pt;padding:0in 0in 0in 0in;width:.96%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="26%" colspan="2" valign="bottom" style="border:none;border-left:solid windowtext 1.0pt;padding:0in 0in 0in 0in;width:26.02%;">
  <p style="margin:0in 0in .0001pt 20.0pt;text-indent:-10.0pt;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">Add:
  Depreciation and amortization</font></p>
  </td>
  <td width="1%" valign="bottom" style="border:none;border-right:solid windowtext 1.0pt;padding:0in 0in 0in 0in;width:1.92%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="11%" valign="bottom" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0in 0in 0in 0in;width:11.52%;">
  <p align="right" style="margin:0in 1.45pt .0001pt 0in;text-align:right;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">7,874</font></p>
  </td>
  <td width="2%" valign="bottom" style="border:none;border-right:solid windowtext 1.0pt;padding:0in 0in 0in 0in;width:2.58%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="9%" valign="bottom" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0in 0in 0in 0in;width:9.0%;">
  <p align="right" style="margin:0in 9.35pt .0001pt 0in;text-align:right;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">4,014</font></p>
  </td>
  <td width="3%" valign="bottom" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0in 0in 0in 0in;width:3.0%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="9%" valign="bottom" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0in 0in 0in 0in;width:9.0%;">
  <p align="right" style="margin:0in .1in .0001pt 0in;text-align:right;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">3,860</font></p>
  </td>
  <td width="3%" valign="bottom" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0in 0in 0in 0in;width:3.0%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="9%" valign="bottom" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0in 0in 0in 0in;width:9.0%;">
  <p align="right" style="margin:0in .1in .0001pt 0in;text-align:right;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">3,733</font></p>
  </td>
  <td width="3%" valign="bottom" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0in 0in 0in 0in;width:3.0%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="9%" valign="bottom" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0in 0in 0in 0in;width:9.0%;">
  <p align="right" style="margin:0in 9.35pt .0001pt 0in;text-align:right;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">3,694</font></p>
  </td>
  <td width="3%" valign="bottom" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0in 0in 0in 0in;width:3.0%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="9%" valign="bottom" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0in 0in 0in 0in;width:9.0%;">
  <p align="right" style="margin:0in .15in .0001pt 0in;text-align:right;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">3,694</font></p>
  </td>
  <td width="0%" valign="bottom" style="border-bottom:solid windowtext 1.0pt;border-left:none;border-right:solid windowtext 1.0pt;border-top:none;padding:0in 0in 0in 0in;width:.96%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="26%" colspan="2" valign="bottom" style="border:none;border-left:solid windowtext 1.0pt;padding:0in 0in 0in 0in;width:26.02%;">
  <p style="margin:0in 0in .0001pt 30.0pt;text-indent:-10.0pt;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">Total
  EBITDA</font></p>
  </td>
  <td width="1%" valign="bottom" style="border:none;border-right:solid windowtext 1.0pt;padding:0in 0in 0in 0in;width:1.92%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="11%" valign="bottom" style="border:none;border-bottom:double windowtext 2.25pt;padding:0in 0in 0in 0in;width:11.52%;">
  <p align="right" style="margin:0in 1.45pt .0001pt 0in;text-align:right;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">$30,894</font></p>
  </td>
  <td width="2%" valign="bottom" style="border:none;border-right:solid windowtext 1.0pt;padding:0in 0in 0in 0in;width:2.58%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="9%" valign="bottom" style="border:none;border-bottom:double windowtext 2.25pt;padding:0in 0in 0in 0in;width:9.0%;">
  <p align="right" style="margin:0in 9.35pt .0001pt 0in;text-align:right;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">$16,063</font></p>
  </td>
  <td width="3%" valign="bottom" style="border:none;border-bottom:double windowtext 2.25pt;padding:0in 0in 0in 0in;width:3.0%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="9%" valign="bottom" style="border:none;border-bottom:double windowtext 2.25pt;padding:0in 0in 0in 0in;width:9.0%;">
  <p align="right" style="margin:0in .1in .0001pt 0in;text-align:right;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">$14,831</font></p>
  </td>
  <td width="3%" valign="bottom" style="border:none;border-bottom:double windowtext 2.25pt;padding:0in 0in 0in 0in;width:3.0%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="9%" valign="bottom" style="border:none;border-bottom:double windowtext 2.25pt;padding:0in 0in 0in 0in;width:9.0%;">
  <p align="right" style="margin:0in .1in .0001pt 0in;text-align:right;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">$15,161</font></p>
  </td>
  <td width="3%" valign="bottom" style="border:none;border-bottom:double windowtext 2.25pt;padding:0in 0in 0in 0in;width:3.0%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="9%" valign="bottom" style="border:none;border-bottom:double windowtext 2.25pt;padding:0in 0in 0in 0in;width:9.0%;">
  <p align="right" style="margin:0in 9.35pt .0001pt 0in;text-align:right;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">$15,360</font></p>
  </td>
  <td width="3%" valign="bottom" style="border:none;border-bottom:double windowtext 2.25pt;padding:0in 0in 0in 0in;width:3.0%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="9%" valign="bottom" style="border:none;border-bottom:double windowtext 2.25pt;padding:0in 0in 0in 0in;width:9.0%;">
  <p align="right" style="margin:0in .15in .0001pt 0in;text-align:right;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">$15,248</font></p>
  </td>
  <td width="0%" valign="bottom" style="border-bottom:double windowtext 2.25pt;border-left:none;border-right:solid windowtext 1.0pt;border-top:none;padding:0in 0in 0in 0in;width:.96%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="26%" colspan="2" valign="bottom" style="border:none;border-left:solid windowtext 1.0pt;padding:0in 0in 0in 0in;width:26.02%;">
  <p style="margin:0in 0in .0001pt 30.0pt;text-indent:-10.0pt;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">&nbsp;</font></p>
  </td>
  <td width="1%" valign="bottom" style="border:none;border-right:solid windowtext 1.0pt;padding:0in 0in 0in 0in;width:1.92%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">&nbsp;</font></p>
  </td>
  <td width="11%" valign="bottom" style="border:none;padding:0in 0in 0in 0in;width:11.52%;">
  <p align="right" style="margin:0in 1.45pt .0001pt 0in;text-align:right;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">&nbsp;</font></p>
  </td>
  <td width="2%" valign="bottom" style="border:none;border-right:solid windowtext 1.0pt;padding:0in 0in 0in 0in;width:2.58%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">&nbsp;</font></p>
  </td>
  <td width="9%" valign="bottom" style="border:none;padding:0in 0in 0in 0in;width:9.0%;">
  <p align="right" style="margin:0in 9.35pt .0001pt 0in;text-align:right;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">&nbsp;</font></p>
  </td>
  <td width="3%" valign="bottom" style="border:none;padding:0in 0in 0in 0in;width:3.0%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">&nbsp;</font></p>
  </td>
  <td width="9%" valign="bottom" style="border:none;padding:0in 0in 0in 0in;width:9.0%;">
  <p align="right" style="margin:0in .1in .0001pt 0in;text-align:right;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">&nbsp;</font></p>
  </td>
  <td width="3%" valign="bottom" style="border:none;padding:0in 0in 0in 0in;width:3.0%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">&nbsp;</font></p>
  </td>
  <td width="9%" valign="bottom" style="border:none;padding:0in 0in 0in 0in;width:9.0%;">
  <p align="right" style="margin:0in .1in .0001pt 0in;text-align:right;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">&nbsp;</font></p>
  </td>
  <td width="3%" valign="bottom" style="border:none;padding:0in 0in 0in 0in;width:3.0%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">&nbsp;</font></p>
  </td>
  <td width="9%" valign="bottom" style="border:none;padding:0in 0in 0in 0in;width:9.0%;">
  <p align="right" style="margin:0in 9.35pt .0001pt 0in;text-align:right;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">&nbsp;</font></p>
  </td>
  <td width="3%" valign="bottom" style="border:none;padding:0in 0in 0in 0in;width:3.0%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">&nbsp;</font></p>
  </td>
  <td width="9%" valign="bottom" style="border:none;padding:0in 0in 0in 0in;width:9.0%;">
  <p align="right" style="margin:0in .15in .0001pt 0in;text-align:right;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">&nbsp;</font></p>
  </td>
  <td width="0%" valign="bottom" style="border:none;border-right:solid windowtext 1.0pt;padding:0in 0in 0in 0in;width:.96%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="26%" colspan="2" valign="bottom" style="border:none;border-left:solid windowtext 1.0pt;padding:0in 0in 0in 0in;width:26.02%;">
  <p style="margin:0in 0in .0001pt 13.7pt;text-indent:-10.1pt;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">Interest
  expense</font></p>
  </td>
  <td width="1%" valign="bottom" style="border:none;border-right:solid windowtext 1.0pt;padding:0in 0in 0in 0in;width:1.92%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="11%" valign="bottom" style="border:none;padding:0in 0in 0in 0in;width:11.52%;">
  <p align="right" style="margin:0in 1.45pt .0001pt 0in;text-align:right;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">$820</font></p>
  </td>
  <td width="2%" valign="bottom" style="border:none;border-right:solid windowtext 1.0pt;padding:0in 0in 0in 0in;width:2.58%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="9%" valign="bottom" style="border:none;padding:0in 0in 0in 0in;width:9.0%;">
  <p align="right" style="margin:0in 9.35pt .0001pt 0in;text-align:right;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">$419</font></p>
  </td>
  <td width="3%" valign="bottom" style="padding:0in 0in 0in 0in;width:3.0%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="9%" valign="bottom" style="padding:0in 0in 0in 0in;width:9.0%;">
  <p align="right" style="margin:0in .1in .0001pt 0in;text-align:right;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">$401</font></p>
  </td>
  <td width="3%" valign="bottom" style="padding:0in 0in 0in 0in;width:3.0%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="9%" valign="bottom" style="padding:0in 0in 0in 0in;width:9.0%;">
  <p align="right" style="margin:0in .1in .0001pt 0in;text-align:right;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">$372</font></p>
  </td>
  <td width="3%" valign="bottom" style="padding:0in 0in 0in 0in;width:3.0%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="9%" valign="bottom" style="padding:0in 0in 0in 0in;width:9.0%;">
  <p align="right" style="margin:0in 9.35pt .0001pt 0in;text-align:right;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">$340</font></p>
  </td>
  <td width="3%" valign="bottom" style="padding:0in 0in 0in 0in;width:3.0%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="9%" valign="bottom" style="padding:0in 0in 0in 0in;width:9.0%;">
  <p align="right" style="margin:0in .15in .0001pt 0in;text-align:right;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">$814</font></p>
  </td>
  <td width="0%" valign="bottom" style="border:none;border-right:solid windowtext 1.0pt;padding:0in 0in 0in 0in;width:.96%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="26%" colspan="2" valign="bottom" style="border:none;border-left:solid windowtext 1.0pt;padding:0in 0in 0in 0in;width:26.02%;">
  <p style="margin:0in 0in .0001pt 10.0pt;text-indent:-10.0pt;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">&nbsp;</font></p>
  </td>
  <td width="1%" valign="bottom" style="border:none;border-right:solid windowtext 1.0pt;padding:0in 0in 0in 0in;width:1.92%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">&nbsp;</font></p>
  </td>
  <td width="11%" valign="bottom" style="border:none;padding:0in 0in 0in 0in;width:11.52%;">
  <p align="right" style="margin:0in 1.45pt .0001pt 0in;text-align:right;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">&nbsp;</font></p>
  </td>
  <td width="2%" valign="bottom" style="border:none;border-right:solid windowtext 1.0pt;padding:0in 0in 0in 0in;width:2.58%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">&nbsp;</font></p>
  </td>
  <td width="9%" valign="bottom" style="border:none;padding:0in 0in 0in 0in;width:9.0%;">
  <p align="right" style="margin:0in 9.35pt .0001pt 0in;text-align:right;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">&nbsp;</font></p>
  </td>
  <td width="3%" valign="bottom" style="padding:0in 0in 0in 0in;width:3.0%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">&nbsp;</font></p>
  </td>
  <td width="9%" valign="bottom" style="padding:0in 0in 0in 0in;width:9.0%;">
  <p align="right" style="margin:0in .1in .0001pt 0in;text-align:right;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">&nbsp;</font></p>
  </td>
  <td width="3%" valign="bottom" style="padding:0in 0in 0in 0in;width:3.0%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">&nbsp;</font></p>
  </td>
  <td width="9%" valign="bottom" style="padding:0in 0in 0in 0in;width:9.0%;">
  <p align="right" style="margin:0in .1in .0001pt 0in;text-align:right;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">&nbsp;</font></p>
  </td>
  <td width="3%" valign="bottom" style="padding:0in 0in 0in 0in;width:3.0%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">&nbsp;</font></p>
  </td>
  <td width="9%" valign="bottom" style="padding:0in 0in 0in 0in;width:9.0%;">
  <p align="right" style="margin:0in 9.35pt .0001pt 0in;text-align:right;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">&nbsp;</font></p>
  </td>
  <td width="3%" valign="bottom" style="padding:0in 0in 0in 0in;width:3.0%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">&nbsp;</font></p>
  </td>
  <td width="9%" valign="bottom" style="padding:0in 0in 0in 0in;width:9.0%;">
  <p align="right" style="margin:0in .15in .0001pt 0in;text-align:right;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">&nbsp;</font></p>
  </td>
  <td width="0%" valign="bottom" style="border:none;border-right:solid windowtext 1.0pt;padding:0in 0in 0in 0in;width:.96%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="26%" colspan="2" valign="bottom" style="border:none;border-left:solid windowtext 1.0pt;padding:0in 0in 0in 0in;width:26.02%;">
  <p style="margin:0in 0in .0001pt 13.7pt;text-indent:-10.1pt;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">Interest
  coverage ratio</font></p>
  </td>
  <td width="1%" valign="bottom" style="border:none;border-right:solid windowtext 1.0pt;padding:0in 0in 0in 0in;width:1.92%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="11%" valign="bottom" style="border:none;padding:0in 0in 0in 0in;width:11.52%;">
  <p align="right" style="margin:0in 1.45pt .0001pt 0in;text-align:right;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">37.7x</font></p>
  </td>
  <td width="2%" valign="bottom" style="border:none;border-right:solid windowtext 1.0pt;padding:0in 0in 0in 0in;width:2.58%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="9%" valign="bottom" style="border:none;padding:0in 0in 0in 0in;width:9.0%;">
  <p align="right" style="margin:0in 9.35pt .0001pt 0in;text-align:right;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">38.3x</font></p>
  </td>
  <td width="3%" valign="bottom" style="padding:0in 0in 0in 0in;width:3.0%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="9%" valign="bottom" style="padding:0in 0in 0in 0in;width:9.0%;">
  <p align="right" style="margin:0in .1in .0001pt 0in;text-align:right;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">37.0x</font></p>
  </td>
  <td width="3%" valign="bottom" style="padding:0in 0in 0in 0in;width:3.0%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="9%" valign="bottom" style="padding:0in 0in 0in 0in;width:9.0%;">
  <p align="right" style="margin:0in .1in .0001pt 0in;text-align:right;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">40.8x</font></p>
  </td>
  <td width="3%" valign="bottom" style="padding:0in 0in 0in 0in;width:3.0%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="9%" valign="bottom" style="padding:0in 0in 0in 0in;width:9.0%;">
  <p align="right" style="margin:0in 9.35pt .0001pt 0in;text-align:right;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">45.2x</font></p>
  </td>
  <td width="3%" valign="bottom" style="padding:0in 0in 0in 0in;width:3.0%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="9%" valign="bottom" style="padding:0in 0in 0in 0in;width:9.0%;">
  <p align="right" style="margin:0in .15in .0001pt 0in;text-align:right;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">18.7x</font></p>
  </td>
  <td width="0%" valign="bottom" style="border:none;border-right:solid windowtext 1.0pt;padding:0in 0in 0in 0in;width:.96%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="26%" colspan="2" valign="bottom" style="border:none;border-left:solid windowtext 1.0pt;padding:0in 0in 0in 0in;width:26.02%;">
  <p style="margin:0in 0in .0001pt 10.0pt;text-indent:-10.0pt;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">&nbsp;</font></p>
  </td>
  <td width="1%" valign="bottom" style="border:none;border-right:solid windowtext 1.0pt;padding:0in 0in 0in 0in;width:1.92%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">&nbsp;</font></p>
  </td>
  <td width="11%" valign="bottom" style="border:none;padding:0in 0in 0in 0in;width:11.52%;">
  <p align="right" style="margin:0in 1.45pt .0001pt 0in;text-align:right;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">&nbsp;</font></p>
  </td>
  <td width="2%" valign="bottom" style="border:none;border-right:solid windowtext 1.0pt;padding:0in 0in 0in 0in;width:2.58%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">&nbsp;</font></p>
  </td>
  <td width="9%" valign="bottom" style="border:none;padding:0in 0in 0in 0in;width:9.0%;">
  <p align="right" style="margin:0in 9.35pt .0001pt 0in;text-align:right;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">&nbsp;</font></p>
  </td>
  <td width="3%" valign="bottom" style="padding:0in 0in 0in 0in;width:3.0%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">&nbsp;</font></p>
  </td>
  <td width="9%" valign="bottom" style="padding:0in 0in 0in 0in;width:9.0%;">
  <p align="right" style="margin:0in .1in .0001pt 0in;text-align:right;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">&nbsp;</font></p>
  </td>
  <td width="3%" valign="bottom" style="padding:0in 0in 0in 0in;width:3.0%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">&nbsp;</font></p>
  </td>
  <td width="9%" valign="bottom" style="padding:0in 0in 0in 0in;width:9.0%;">
  <p align="right" style="margin:0in .1in .0001pt 0in;text-align:right;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">&nbsp;</font></p>
  </td>
  <td width="3%" valign="bottom" style="padding:0in 0in 0in 0in;width:3.0%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">&nbsp;</font></p>
  </td>
  <td width="9%" valign="bottom" style="padding:0in 0in 0in 0in;width:9.0%;">
  <p align="right" style="margin:0in 9.35pt .0001pt 0in;text-align:right;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">&nbsp;</font></p>
  </td>
  <td width="3%" valign="bottom" style="padding:0in 0in 0in 0in;width:3.0%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">&nbsp;</font></p>
  </td>
  <td width="9%" valign="bottom" style="padding:0in 0in 0in 0in;width:9.0%;">
  <p align="right" style="margin:0in .15in .0001pt 0in;text-align:right;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">&nbsp;</font></p>
  </td>
  <td width="0%" valign="bottom" style="border:none;border-right:solid windowtext 1.0pt;padding:0in 0in 0in 0in;width:.96%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="26%" colspan="2" valign="bottom" style="border:none;border-left:solid windowtext 1.0pt;padding:0in 0in 0in 0in;width:26.02%;">
  <p style="margin:0in 0in .0001pt 13.7pt;text-indent:-10.1pt;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">Interest
  expense</font></p>
  </td>
  <td width="1%" valign="bottom" style="border:none;border-right:solid windowtext 1.0pt;padding:0in 0in 0in 0in;width:1.92%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="11%" valign="bottom" style="border:none;padding:0in 0in 0in 0in;width:11.52%;">
  <p align="right" style="margin:0in 1.45pt .0001pt 0in;text-align:right;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">$&nbsp;&nbsp;&nbsp;820</font></p>
  </td>
  <td width="2%" valign="bottom" style="border:none;border-right:solid windowtext 1.0pt;padding:0in 0in 0in 0in;width:2.58%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="9%" valign="bottom" style="border:none;padding:0in 0in 0in 0in;width:9.0%;">
  <p align="right" style="margin:0in 9.35pt .0001pt 0in;text-align:right;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">$&nbsp;&nbsp;&nbsp;419</font></p>
  </td>
  <td width="3%" valign="bottom" style="padding:0in 0in 0in 0in;width:3.0%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="9%" valign="bottom" style="padding:0in 0in 0in 0in;width:9.0%;">
  <p align="right" style="margin:0in .1in .0001pt 0in;text-align:right;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">$&nbsp;&nbsp;&nbsp;401</font></p>
  </td>
  <td width="3%" valign="bottom" style="padding:0in 0in 0in 0in;width:3.0%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="9%" valign="bottom" style="padding:0in 0in 0in 0in;width:9.0%;">
  <p align="right" style="margin:0in .1in .0001pt 0in;text-align:right;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">$&nbsp;&nbsp;&nbsp;372</font></p>
  </td>
  <td width="3%" valign="bottom" style="padding:0in 0in 0in 0in;width:3.0%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="9%" valign="bottom" style="padding:0in 0in 0in 0in;width:9.0%;">
  <p align="right" style="margin:0in 9.35pt .0001pt 0in;text-align:right;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">$&nbsp;&nbsp;&nbsp;340</font></p>
  </td>
  <td width="3%" valign="bottom" style="padding:0in 0in 0in 0in;width:3.0%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="9%" valign="bottom" style="padding:0in 0in 0in 0in;width:9.0%;">
  <p align="right" style="margin:0in .15in .0001pt 0in;text-align:right;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">$&nbsp;&nbsp;&nbsp;814</font></p>
  </td>
  <td width="0%" valign="bottom" style="border:none;border-right:solid windowtext 1.0pt;padding:0in 0in 0in 0in;width:.96%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="26%" colspan="2" valign="bottom" style="border:none;border-left:solid windowtext 1.0pt;padding:0in 0in 0in 0in;width:26.02%;">
  <p style="margin:0in 0in .0001pt 13.7pt;text-indent:-10.1pt;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">Preferred
  stock dividends</font></p>
  </td>
  <td width="1%" valign="bottom" style="border:none;border-right:solid windowtext 1.0pt;padding:0in 0in 0in 0in;width:1.92%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="11%" valign="bottom" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0in 0in 0in 0in;width:11.52%;">
  <p align="right" style="margin:0in 1.45pt .0001pt 0in;text-align:right;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">7,570</font></p>
  </td>
  <td width="2%" valign="bottom" style="border:none;border-right:solid windowtext 1.0pt;padding:0in 0in 0in 0in;width:2.58%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="9%" valign="bottom" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0in 0in 0in 0in;width:9.0%;">
  <p align="right" style="margin:0in 9.35pt .0001pt 0in;text-align:right;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">3,785</font></p>
  </td>
  <td width="3%" valign="bottom" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0in 0in 0in 0in;width:3.0%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="9%" valign="bottom" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0in 0in 0in 0in;width:9.0%;">
  <p align="right" style="margin:0in .1in .0001pt 0in;text-align:right;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">3,785</font></p>
  </td>
  <td width="3%" valign="bottom" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0in 0in 0in 0in;width:3.0%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="9%" valign="bottom" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0in 0in 0in 0in;width:9.0%;">
  <p align="right" style="margin:0in .1in .0001pt 0in;text-align:right;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">3,785</font></p>
  </td>
  <td width="3%" valign="bottom" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0in 0in 0in 0in;width:3.0%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="9%" valign="bottom" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0in 0in 0in 0in;width:9.0%;">
  <p align="right" style="margin:0in 9.35pt .0001pt 0in;text-align:right;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">3,785</font></p>
  </td>
  <td width="3%" valign="bottom" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0in 0in 0in 0in;width:3.0%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="9%" valign="bottom" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0in 0in 0in 0in;width:9.0%;">
  <p align="right" style="margin:0in .15in .0001pt 0in;text-align:right;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">3,786</font></p>
  </td>
  <td width="0%" valign="bottom" style="border-bottom:solid windowtext 1.0pt;border-left:none;border-right:solid windowtext 1.0pt;border-top:none;padding:0in 0in 0in 0in;width:.96%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="26%" colspan="2" valign="bottom" style="border:none;border-left:solid windowtext 1.0pt;padding:0in 0in 0in 0in;width:26.02%;">
  <p style="margin:0in 0in .0001pt 30.0pt;text-indent:-10.0pt;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">Total
  fixed charges</font></p>
  </td>
  <td width="1%" valign="bottom" style="border:none;border-right:solid windowtext 1.0pt;padding:0in 0in 0in 0in;width:1.92%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="11%" valign="bottom" style="border:none;border-bottom:double windowtext 2.25pt;padding:0in 0in 0in 0in;width:11.52%;">
  <p align="right" style="margin:0in 1.45pt .0001pt 0in;text-align:right;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">$8,390</font></p>
  </td>
  <td width="2%" valign="bottom" style="border:none;border-right:solid windowtext 1.0pt;padding:0in 0in 0in 0in;width:2.58%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="9%" valign="bottom" style="border:none;border-bottom:double windowtext 2.25pt;padding:0in 0in 0in 0in;width:9.0%;">
  <p align="right" style="margin:0in 9.35pt .0001pt 0in;text-align:right;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">$4,204</font></p>
  </td>
  <td width="3%" valign="bottom" style="border:none;border-bottom:double windowtext 2.25pt;padding:0in 0in 0in 0in;width:3.0%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="9%" valign="bottom" style="border:none;border-bottom:double windowtext 2.25pt;padding:0in 0in 0in 0in;width:9.0%;">
  <p align="right" style="margin:0in .1in .0001pt 0in;text-align:right;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">$4,186</font></p>
  </td>
  <td width="3%" valign="bottom" style="border:none;border-bottom:double windowtext 2.25pt;padding:0in 0in 0in 0in;width:3.0%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="9%" valign="bottom" style="border:none;border-bottom:double windowtext 2.25pt;padding:0in 0in 0in 0in;width:9.0%;">
  <p align="right" style="margin:0in .1in .0001pt 0in;text-align:right;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">$4,157</font></p>
  </td>
  <td width="3%" valign="bottom" style="border:none;border-bottom:double windowtext 2.25pt;padding:0in 0in 0in 0in;width:3.0%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="9%" valign="bottom" style="border:none;border-bottom:double windowtext 2.25pt;padding:0in 0in 0in 0in;width:9.0%;">
  <p align="right" style="margin:0in 9.35pt .0001pt 0in;text-align:right;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">$4,125</font></p>
  </td>
  <td width="3%" valign="bottom" style="border:none;border-bottom:double windowtext 2.25pt;padding:0in 0in 0in 0in;width:3.0%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="9%" valign="bottom" style="border:none;border-bottom:double windowtext 2.25pt;padding:0in 0in 0in 0in;width:9.0%;">
  <p align="right" style="margin:0in .15in .0001pt 0in;text-align:right;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">$4,600</font></p>
  </td>
  <td width="0%" valign="bottom" style="border-bottom:double windowtext 2.25pt;border-left:none;border-right:solid windowtext 1.0pt;border-top:none;padding:0in 0in 0in 0in;width:.96%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="26%" colspan="2" valign="bottom" style="border:none;border-left:solid windowtext 1.0pt;padding:0in 0in 0in 0in;width:26.02%;">
  <p style="margin:0in 0in .0001pt 10.0pt;text-indent:-10.0pt;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">&nbsp;</font></p>
  </td>
  <td width="1%" valign="bottom" style="border:none;border-right:solid windowtext 1.0pt;padding:0in 0in 0in 0in;width:1.92%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">&nbsp;</font></p>
  </td>
  <td width="11%" valign="bottom" style="border:none;padding:0in 0in 0in 0in;width:11.52%;">
  <p align="right" style="margin:0in 1.45pt .0001pt 0in;text-align:right;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">&nbsp;</font></p>
  </td>
  <td width="2%" valign="bottom" style="border:none;border-right:solid windowtext 1.0pt;padding:0in 0in 0in 0in;width:2.58%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">&nbsp;</font></p>
  </td>
  <td width="9%" valign="bottom" style="border:none;padding:0in 0in 0in 0in;width:9.0%;">
  <p align="right" style="margin:0in 9.35pt .0001pt 0in;text-align:right;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">&nbsp;</font></p>
  </td>
  <td width="3%" valign="bottom" style="border:none;padding:0in 0in 0in 0in;width:3.0%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">&nbsp;</font></p>
  </td>
  <td width="9%" valign="bottom" style="border:none;padding:0in 0in 0in 0in;width:9.0%;">
  <p align="right" style="margin:0in .1in .0001pt 0in;text-align:right;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">&nbsp;</font></p>
  </td>
  <td width="3%" valign="bottom" style="border:none;padding:0in 0in 0in 0in;width:3.0%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">&nbsp;</font></p>
  </td>
  <td width="9%" valign="bottom" style="border:none;padding:0in 0in 0in 0in;width:9.0%;">
  <p align="right" style="margin:0in .1in .0001pt 0in;text-align:right;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">&nbsp;</font></p>
  </td>
  <td width="3%" valign="bottom" style="border:none;padding:0in 0in 0in 0in;width:3.0%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">&nbsp;</font></p>
  </td>
  <td width="9%" valign="bottom" style="border:none;padding:0in 0in 0in 0in;width:9.0%;">
  <p align="right" style="margin:0in 9.35pt .0001pt 0in;text-align:right;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">&nbsp;</font></p>
  </td>
  <td width="3%" valign="bottom" style="border:none;padding:0in 0in 0in 0in;width:3.0%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">&nbsp;</font></p>
  </td>
  <td width="9%" valign="bottom" style="border:none;padding:0in 0in 0in 0in;width:9.0%;">
  <p align="right" style="margin:0in .15in .0001pt 0in;text-align:right;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">&nbsp;</font></p>
  </td>
  <td width="0%" valign="bottom" style="border:none;border-right:solid windowtext 1.0pt;padding:0in 0in 0in 0in;width:.96%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="26%" colspan="2" valign="bottom" style="border-bottom:solid windowtext 1.0pt;border-left:solid windowtext 1.0pt;border-right:none;border-top:none;padding:0in 0in 0in 0in;width:26.02%;">
  <p style="margin:0in 0in .0001pt 13.7pt;text-indent:-10.1pt;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">Fixed
  charge coverage ratio</font></p>
  </td>
  <td width="1%" valign="bottom" style="border-bottom:solid windowtext 1.0pt;border-left:none;border-right:solid windowtext 1.0pt;border-top:none;padding:0in 0in 0in 0in;width:1.92%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="11%" valign="bottom" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0in 0in 0in 0in;width:11.52%;">
  <p align="right" style="margin:0in 1.45pt .0001pt 0in;text-align:right;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">3.7x</font></p>
  </td>
  <td width="2%" valign="bottom" style="border-bottom:solid windowtext 1.0pt;border-left:none;border-right:solid windowtext 1.0pt;border-top:none;padding:0in 0in 0in 0in;width:2.58%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="9%" valign="bottom" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0in 0in 0in 0in;width:9.0%;">
  <p align="right" style="margin:0in 9.35pt .0001pt 0in;text-align:right;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">3.8x</font></p>
  </td>
  <td width="3%" valign="bottom" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0in 0in 0in 0in;width:3.0%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="9%" valign="bottom" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0in 0in 0in 0in;width:9.0%;">
  <p align="right" style="margin:0in .1in .0001pt 0in;text-align:right;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">3.5x</font></p>
  </td>
  <td width="3%" valign="bottom" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0in 0in 0in 0in;width:3.0%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="9%" valign="bottom" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0in 0in 0in 0in;width:9.0%;">
  <p align="right" style="margin:0in .1in .0001pt 0in;text-align:right;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">3.6x</font></p>
  </td>
  <td width="3%" valign="bottom" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0in 0in 0in 0in;width:3.0%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="9%" valign="bottom" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0in 0in 0in 0in;width:9.0%;">
  <p align="right" style="margin:0in 9.35pt .0001pt 0in;text-align:right;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">3.7x</font></p>
  </td>
  <td width="3%" valign="bottom" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0in 0in 0in 0in;width:3.0%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="9%" valign="bottom" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0in 0in 0in 0in;width:9.0%;">
  <p align="right" style="margin:0in .15in .0001pt 0in;text-align:right;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">3.3x</font></p>
  </td>
  <td width="0%" valign="bottom" style="border-bottom:solid windowtext 1.0pt;border-left:none;border-right:solid windowtext 1.0pt;border-top:none;padding:0in 0in 0in 0in;width:.96%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr height="0">
  <td width="36" style="border:none;"></td>
  <td width="159" style="border:none;"></td>
  <td width="14" style="border:none;"></td>
  <td width="86" style="border:none;"></td>
  <td width="19" style="border:none;"></td>
  <td width="67" style="border:none;"></td>
  <td width="22" style="border:none;"></td>
  <td width="67" style="border:none;"></td>
  <td width="22" style="border:none;"></td>
  <td width="67" style="border:none;"></td>
  <td width="22" style="border:none;"></td>
  <td width="67" style="border:none;"></td>
  <td width="22" style="border:none;"></td>
  <td width="67" style="border:none;"></td>
  <td width="7" style="border:none;"></td>
 </tr>
</table>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">27<a name="PB_27_002938_7056"></a></font></p>

<div style="margin:0in 0in .0001pt;"><hr size="3" width="100%" noshade color="#010101" align="left"></div>

</div>
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<div style="font-family:Times New Roman;">

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:11.0pt;">We evaluate our key
performance indicators in conjunction with current expectations to determine if
historical trends are indicative of future results. Our expected results may
not be achieved and actual results may differ materially from our expectations.&#160; This may be a result of various factors,
including, but not limited to</font></p>

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:11.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt 1.0in;text-indent:-.25in;"><font size="2" face="Symbol" style="font-size:11.0pt;">&#183;</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:11.0pt;">The status of the economy;</font></p>

<p style="margin:0in 0in .0001pt 1.0in;text-indent:-.25in;"><font size="2" face="Symbol" style="font-size:11.0pt;">&#183;</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:11.0pt;">The status of capital markets, including prevailing
interest rates and availability of capital;</font></p>

<p style="margin:0in 0in .0001pt 1.0in;text-indent:-.25in;"><font size="2" face="Symbol" style="font-size:11.0pt;">&#183;</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:11.0pt;">Compliance with and changes to regulations and payment
policies within the health care industry;</font></p>

<p style="margin:0in 0in .0001pt 1.0in;text-indent:-.25in;"><font size="2" face="Symbol" style="font-size:11.0pt;">&#183;</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:11.0pt;">Changes in financing terms;</font></p>

<p style="margin:0in 0in .0001pt 1.0in;text-indent:-.25in;"><font size="2" face="Symbol" style="font-size:11.0pt;">&#183;</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:11.0pt;">Competition within the health care and senior housing
industries; and</font></p>

<p style="margin:0in 0in .0001pt 1.0in;text-indent:-.25in;"><font size="2" face="Symbol" style="font-size:11.0pt;">&#183;</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:11.0pt;">Changes in federal, state and local legislation and
regulations.</font></p>

<p style="margin:0in 0in .0001pt 1.0in;text-indent:-.25in;"><font size="2" face="Times New Roman" style="font-size:11.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:11.0pt;">Management regularly
monitors the economic and other factors listed above.&#160; We develop strategic and tactical plans
designed to improve performance and maximize our competitive position. Our
ability to achieve our financial objectives is dependent upon our ability to effectively
execute these plans and to appropriately respond to emerging economic and
company-specific trends.</font></p>

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:11.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;"><b><font size="2" face="Times New Roman" style="font-size:11.0pt;font-weight:bold;">Operating
Results</font></b></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:11.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;"><b><i><font size="2" face="Times New Roman" style="font-size:11.0pt;font-style:italic;font-weight:bold;">Three
months ended June&nbsp;30, 2010 compared to three months ended June&nbsp;30,
2009</font></i></b></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:11.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:11.0pt;">Revenues for the three
months ended June&nbsp;30, 2010 increased to $18.2&nbsp;million from
$17.4&nbsp;million for the same period in 2009 primarily due to increases in
rental income partially offset by decreases in interest income from mortgage
loans, as discussed below.&#160; Rental income
for the three months ended June&nbsp;30, 2010 increased $1.1&nbsp;million from
the same period in 2009 primarily due to increases resulting from acquisitions
in 2010 and 2009.</font></p>

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:11.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:11.0pt;">Interest income from
mortgage loans for the three months ended June&nbsp;30, 2010 decreased
$0.3&nbsp;million from the same period in 2009 primarily due to payoffs and normal
amortization of existing mortgage loans.</font></p>

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:11.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:11.0pt;">Interest and other income
were comparable for each of the three months ended June&nbsp;30, 2010 and 2009.</font></p>

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:11.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:11.0pt;">Interest expense for the
three months ended June&nbsp;30, 2010 was $0.4&nbsp;million lower than the same
period in 2009 due to a decrease in mortgage loans payable outstanding during
the period resulting from the repayment of mortgage loans in 2010 and 2009 and
normal amortization of existing mortgage loans partially offset by increase in
bank borrowings outstanding.</font></p>

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:11.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:11.0pt;">Depreciation and
amortization expense for the three months ended June&nbsp;30, 2010 increased
$0.3&nbsp;million from the same period in 2009 primarily due to capital
improvement investments and acquisitions in 2010 and 2009.</font></p>

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:11.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:11.0pt;">Provisions for doubtful
accounts for the three months ended June&nbsp;30, 2010 were comparable to the
same period in 2009.</font></p>

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:11.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:11.0pt;">Operating and other
expenses were comparable for each of the three months ended June&nbsp;30, 2010
and 2009.</font></p>

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:11.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:11.0pt;">Net income allocable to
common stockholders for the three months ended June&nbsp;30, 2010 increased
$0.9&nbsp;million from the same period in 2009 due to the changes previously
described above.</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">28<a name="PB_28_003124_5335"></a></font></p>

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<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:11.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;"><b><i><font size="2" face="Times New Roman" style="font-size:11.0pt;font-style:italic;font-weight:bold;">Six
months ended June&nbsp;30, 2010 compared to six months ended June&nbsp;30, 2009</font></i></b></p>

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:11.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:11.0pt;">Revenues for the six
months ended June&nbsp;30, 2010 increased to $36.1&nbsp;million from
$35.1&nbsp;million for the same period in 2009 primarily due to increases in
rental income partially offset by decreases in interest income from mortgage
loans, as discussed below.&#160; Rental income
for the six months ended June&nbsp;30, 2010 increased $1.7&nbsp;million from
the same period in 2009 primarily due to increases resulting from acquisitions
in 2010 and 2009.</font></p>

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:11.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:11.0pt;">Interest income from
mortgage loans for the six months ended June&nbsp;30, 2010 decreased
$0.7&nbsp;million from the same period in 2009 primarily due to payoffs and
normal amortization of existing mortgage loans.</font></p>

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:11.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:11.0pt;">Interest and other income
were comparable for each of the six months ended June&nbsp;30, 2010 and 2009.</font></p>

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:11.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:11.0pt;">Interest expense for the
six months ended June&nbsp;30, 2010 was $0.9&nbsp;million lower than the same
period in 2009 due to a decrease in mortgage loans payable outstanding during
the period resulting from the repayment of mortgage loans in 2010 and 2009 and
normal amortization of existing mortgage loans partially offset by increase in
bank borrowings outstanding.</font></p>

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:11.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:11.0pt;">Depreciation and
amortization expense for the six months ended June&nbsp;30, 2010 increased
$0.5&nbsp;million from the same period in 2009 primarily due to capital
improvement investments and acquisitions in 2010 and 2009.</font></p>

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:11.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:11.0pt;">Provisions for doubtful
accounts for the six months ended June&nbsp;30, 2010 increased
$0.9&nbsp;million from the same period in 2009 primarily due to provision for
doubtful accounts related to a mortgage loan secured by a private school
property located in Minnesota.&#160; On April&nbsp;20,
2010, the borrower notified us that they ceased operations.&#160; Prior to that notice, the borrower was
current with all loan payments. The borrower has filed for Chapter 7 bankruptcy
and we have filed a Motion for Relief from Stay.&#160; If relief is granted by the court, we will
either (i)&nbsp;record the existing Deed-in-Lieu, or (ii)&nbsp;initiate
foreclosure proceedings.</font></p>

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:11.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:11.0pt;">Operating and other expenses
for the six months ended June&nbsp;30, 2010 increased $0.3&nbsp;million from
the same period in 2009 primarily due to transaction costs related to the
acquisitions in 2010 and the timing of certain expenditures.</font></p>

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:11.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:11.0pt;">Net income allocable to
common stockholders for the six months ended June&nbsp;30, 2010 decreased
$0.4&nbsp;million from the same period in 2009 due to the increase in income
allocated to our preferred stockholders partially offset by the changes
previously described above.&#160; Income
allocated to preferred stockholders during the six months ended June&nbsp;30,
2009 includes the repurchase of preferred stock for less than the redemption
value.</font></p>

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:11.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;"><b><font size="2" face="Times New Roman" style="font-size:11.0pt;font-weight:bold;">Liquidity
and Capital Resources</font></b></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:11.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><i><font size="2" face="Times New Roman" style="font-size:11.0pt;font-style:italic;">Operating
Activities.</font></i><font size="2" style="font-size:11.0pt;">&#160; At June&nbsp;30, 2010, our real estate
investment portfolio (before accumulated depreciation and amortization)
consisted of $560.3&nbsp;million invested primarily in owned long-term
healthcare properties and mortgage loans of approximately $68.6&nbsp;million
(prior to deducting a $1.5&nbsp;million reserve).&#160; Our portfolio consists of direct investments
(properties that we either own or on which we hold promissory notes secured by
first mortgages) in 95 skilled nursing properties, 99 assisted living
properties, 12 other properties and two schools.&#160; Other properties consist of independent
living properties and properties providing any combination of skilled nursing,
assisted living and/or independent living services.&#160; These properties are located in 29
states.&#160; For the six months ended
June&nbsp;30, 2010, we had net cash provided by operating activities of
$31.7&nbsp;million.</font></p>

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:11.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:11.0pt;">For the six months ended
June&nbsp;30, 2010 we recorded $1.9&nbsp;million in straight-line rent.&#160; We currently expect that straight-line rent
on a same store basis will decrease from $3.6&nbsp;million for projected annual
2010 to $1.6&nbsp;million for projected annual 2011 assuming no modification or
replacement of existing leases and no new leased investments are added to our
portfolio. Conversely, our cash rental income is projected to increase from
$61.6&nbsp;million for projected annual 2010 to $64.8&nbsp;million for
projected annual 2011 assuming no modification or replacement of existing
leases and no new leased investments are added to our portfolio. Also during
the six months ended June&nbsp;30, 2010, we recorded an additional reserve of
$0.4&nbsp;million on our </font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">29<a name="PB_29_230139_8627"></a></font></p>

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<div style="font-family:Times New Roman;">

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:11.0pt;">straight-line rent
receivable.&#160; During the six months ended
June&nbsp;30, 2010 we received $30.1&nbsp;million of cash rental revenue and
recorded $0.3&nbsp;million of amortized lease inducement cost.</font></p>

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:11.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><i><font size="2" face="Times New Roman" style="font-size:11.0pt;font-style:italic;">Investing
and Financing Activities.</font></i><font size="2" style="font-size:11.0pt;">&#160; For the six months ended June
30, 2010, we used $38.0 million of cash for investing activities.&#160; We acquired two properties in Virginia, a
90-bed skilled nursing property and a property with 137 skilled nursing beds,
47 assisted living units and 46 independent living units, for $22.0 million and
incurred and expensed $7,000 in transaction costs.&#160; These properties were leased to a third party
operator under a 12-year master lease with two 10-year renewal options.&#160; Additionally, we acquired a 120-bed skilled
nursing property in Florida for $9.0 million and incurred and expensed $0.1
million in transaction costs.&#160; This
property was leased to a third party operator under a 12-year lease with two
10-year renewal options.&#160; We also
purchased a 166-bed skilled nursing property in Texas for $7.9 million and
incurred and expensed $30,000 in transaction costs.&#160; This property was leased to a third party
operator under a 10-year lease with two five-year renewal options.&#160; We paid this operator, who previously
operated the property under a lease with the seller, $0.1 million as a lease
inducement.&#160; The lease inducement is
amortized as a yield adjustment over the life of the lease.&#160; In addition, we invested $0.9 million, at an
average yield of 10.0%, under agreements to expand and renovate eight existing
properties operated by six different operators.&#160;
Additionally, we invested $1.0 million in capital improvements to
existing properties under various lease agreements whose rental rates already
reflected this investment.&#160; Subsequent to
June 30, 2010, a lessee notified us of its intent to exercise its option to
purchase a 195-bed skilled nursing property located in Virginia on November 1,
2010.&#160; The carrying value of this
property as of June 30, 2010 was $4.4 million and the annual revenue from this
property is $0.4 million.&#160; At this time,
we anticipate an immaterial net gain from this sale.</font></p>

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:11.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:11.0pt;">During the six months
ended June&nbsp;30, 2010, we invested $0.1&nbsp;million under one existing
mortgage loan for capital improvements and we received $2.0&nbsp;million in
principal payments on mortgage loans.&#160;&#160;
Additionally, we recorded $0.9&nbsp;million of provision for doubtful
accounts related to a mortgage loan secured by a private school property
located in Minnesota.&#160; On April&nbsp;20,
2010, the borrower notified us that they ceased operations.&#160; Prior to that notice, the borrower was
current with all loan payments. The borrower has filed for Chapter 7 bankruptcy
and we have filed a Motion for Relief from Stay.&#160; If relief is granted by the court, we will
either (i)&nbsp;record the existing Deed-in-Lieu, or (ii)&nbsp;initiate
foreclosure proceedings.&#160; Subsequent to June&nbsp;30,
2010, we invested $1.6 million, before closing fees of $0.1 million, in a
mortgage loan secured by a skilled nursing property located in Missouri to
finance an expansion of the property and extend the loan maturity for an
additional five years to January&nbsp;2018.&#160;
The current interest rate is 10.9%, increasing 0.13% annually.</font></p>

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:11.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:11.0pt;">During the six months
ended June&nbsp;30, 2010, we received $1.0&nbsp;million in principal payments
on notes receivable.&#160; Subsequent to June&nbsp;30,
2010, we funded an additional $0.1 million under a $0.3 million loan commitment
we provided to a lessee of three assisted living properties. The total funded
under this commitment is $0.3 million. The loan has an interest rate of 9% and
matures on November&nbsp;30, 2011.</font></p>

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:11.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:11.0pt;">In December&nbsp;2005, we
purchased, on the open market, $10.0&nbsp;million face value of Skilled
Healthcare Group (or SHG) Senior Subordinated Notes with a face rate of 11.0%
and an effective yield of 11.1%.&#160; One of
our directors, Boyd W. Hendrickson, serves as Chief Executive Officer of
SHG.&#160; Our Board of Directors, with Mr.&nbsp;Hendrickson
abstaining, ratified the purchase of SHG Senior Subordinated Notes.&#160; As a result of an early redemption by SHG in
2007, we have a remaining investment in $6.5&nbsp;million face value of SHG
Senior Subordinated Notes at June&nbsp;30, 2010 and December&nbsp;31,
2009.&#160; Interest on the notes is payable
semi-annually in arrears and the notes mature on January&nbsp;15, 2014.&#160; Subsequent to June&nbsp;30, 2010, we received
the semi-annual interest on the notes as scheduled.</font></p>

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<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">30<a name="PB_30_230204_7906"></a></font></p>

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<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:11.0pt;">On July&nbsp;7,
2010, SHG reported that a Humboldt County, California, jury returned a verdict
against SHG related to a complaint filed on May&nbsp;4, 2006.&#160; The jury awarded the plaintiffs
$613.0&nbsp;million in statutory damages and $58.0&nbsp;million in
restitutionary damages.&#160; The plaintiffs
alleged that certain California-based facilities operated by SHG&#146;s wholly owned
operating companies failed to provide an adequate number of qualified personnel
to care for their residents and misrepresented the quality of care provided in
their facilities.&#160; SHG has stated
publicly that it believes the company is appropriately staffed and its caregivers
work diligently every day to provide the care and services its residents need
and deserve.&#160; SHG also announced that it
has agreed with the plaintiffs to enter into mediation.&#160; As part of the agreement, the plaintiffs will
not move to collect on their verdict against SHG, and, in return, SHG will not
transfer or impair any assets.</font></p>

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:11.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:11.0pt;">Accounting
Standards Codification No.&nbsp;320,&nbsp;<i>Investments&#151;Debt
and Equity Securities </i>(or ASC 320), requires an entity to assess
whether it intends to sell, or it is more likely than not that it will be
required to sell, a debt security in an unrealized loss position before
recovery of its amortized cost basis. If either of these criteria is met, the
entire difference between fair value and amortized cost is recognized as impairment
through earnings. For securities that do not meet the aforementioned criteria,
the amount of impairment is split into two components as follows: 1)
other-than-temporary impairment (or OTTI) related to other factors such as SHG&#146;s
ability to make scheduled interest or principal payments on the debt
securities, which is recognized in other comprehensive income and 2) OTTI
related to credit loss, which must be recognized in the income statement. The
credit loss is determined as the difference between the present value of the
cash flows expected to be collected and the amortized cost basis.</font></p>

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:11.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:11.0pt;">As a result of the
verdict against SHG, the fair value of our SHG Senior Subordinated Notes has
decreased below amortized cost basis which we believe to be temporary based on
the facts available to us.&#160; We do not
intend to sell the debt securities and currently we have concluded that it is
not &#147;more likely than not&#148; that we will be required to sell these securities
before the anticipated recovery of the remaining amortized cost basis.&#160; We will continue to evaluate our debt
securities for OTTI as the mediation between SHG and the plaintiffs progresses.</font></p>

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:11.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:11.0pt;">For the six months ended
June&nbsp;30, 2010, we received $2.9&nbsp;million of cash in financing
activities.&#160; We paid $0.6&nbsp;million in
scheduled principal payments on mortgage loans and bonds payable.&#160; Also, we paid off a $7.6&nbsp;million
mortgage loan secured by an assisted living property located in California at a
fixed interest rate of 8.69%.</font></p>

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:11.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:11.0pt;">Our Unsecured Revolving
Credit Agreement (or Unsecured Credit Agreement), dated July&nbsp;17, 2008, was
at an initial commitment amount of $80.0&nbsp;million.&#160; During the six months ended June&nbsp;30,
2010, we added a new lender with a $30.0&nbsp;million commitment to our
Unsecured Credit Agreement increasing our total availability to
$110.0&nbsp;million.&#160; The Unsecured
Credit Agreement provides for the opportunity to increase the credit amount up
to a total of $120.0&nbsp;million.&#160; The
Unsecured Credit Agreement provides a revolving line of credit with a final
maturity date of July&nbsp;17, 2011.&#160; The
pricing under the Unsecured Credit Agreement based on our borrowing election is
Prime Rate plus 0.50% or LIBOR plus 1.50%.&#160;
At the time of borrowing, we may elect the 1, 2, 3 or 6 month LIBOR
rate.&#160; Under financial covenants
contained in the Unsecured Credit Agreement which are measured quarterly we are
required to maintain, among other things:</font></p>

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:11.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt 63.0pt;text-indent:-27.0pt;"><font size="2" face="Times New Roman" style="font-size:11.0pt;">(i)</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:11.0pt;">a ratio, of
total indebtedness to total asset value, not greater than 0.5 to 1.0;</font></p>

<p style="margin:0in 0in .0001pt 63.0pt;text-indent:-27.0pt;"><font size="2" face="Times New Roman" style="font-size:11.0pt;">(ii)</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:11.0pt;">a ratio not
greater than 0.35 to 1.0 of secured debt to total asset value;</font></p>

<p style="margin:0in 0in .0001pt 63.0pt;text-indent:-27.0pt;"><font size="2" face="Times New Roman" style="font-size:11.0pt;">(iii)</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:11.0pt;">a ratio not
less than 2.5 to 1.0 of EBITDA as calculated in the Unsecured Credit Agreement
to interest expense; and</font></p>

<p style="margin:0in 0in .0001pt 63.0pt;text-indent:-27.0pt;"><font size="2" face="Times New Roman" style="font-size:11.0pt;">(iv)</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:11.0pt;">a ratio of not
less than 1.50 to 1.0 of EBITDA as calculated in the Unsecured Credit Agreement
to fixed charges.</font></p>

<p style="margin:0in 0in .0001pt 63.0pt;text-indent:-27.0pt;"><font size="2" face="Times New Roman" style="font-size:11.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:11.0pt;">During the six months
ended June&nbsp;30, 2010, we borrowed $37.5&nbsp;million and repaid
$10.0&nbsp;million under our Unsecured Credit Agreement.&#160; At June&nbsp;30, 2010, we had
$41.0&nbsp;million outstanding at an interest rate of LIBOR plus 1.50% under
our Unsecured Credit Agreement with $69.0&nbsp;million available for
borrowing.&#160; At June&nbsp;30, 2010, we
were in compliance with all our covenants.&#160;
Subsequent to June&nbsp;30, 2010, we repaid $41.0&nbsp;million under our
Unsecured Credit Agreement using proceeds from the sale of the senior unsecured
</font></p>

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<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">31<a name="PB_31_230236_3736"></a></font></p>

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<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:11.0pt;">notes as discussed
below.&#160; After this repayment we have no
outstanding balance under our Unsecured Credit Agreement and
$110.0&nbsp;million available for borrowing.</font></p>

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:11.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:11.0pt;">Subsequent to June&nbsp;30,
2010, we completed the sale to affiliates and managed accounts of Prudential of
$25.0&nbsp;million aggregate principal amount of 5.26% senior unsecured term
notes due July&nbsp;14, 2015 and $25.0&nbsp;million aggregate principal amount
of 5.74% senior unsecured term notes due January&nbsp;14, 2019.&#160; Also, we entered into an uncommitted private
shelf agreement with Prudential which provides for the possible issuance of up
to an additional $50.0&nbsp;million of senior unsecured fixed-rate term notes
during the three-year issuance period.</font></p>

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:11.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:11.0pt;">We paid cash dividends on
our Series&nbsp;C, Series&nbsp;E, and Series&nbsp;F preferred stock totaling
$1.6&nbsp;million, $40,000 and $5.9&nbsp;million, respectively.&#160; Additionally, we declared and paid cash
dividends on our common stock totaling $18.4 million.&#160; In July&nbsp;2010, we declared a monthly cash
dividend of $0.13 per common share per month for the months of July, August&nbsp;and
September&nbsp;2010, payable on July&nbsp;30, August&nbsp;31 and September&nbsp;30,
2010, respectively, to stockholders of record on July&nbsp;22, August&nbsp;23
and September&nbsp;22, 2010, respectively.</font></p>

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:11.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:11.0pt;">During the six months
ended June&nbsp;30, 2010, a total of 6,666 common stock options were exercised
at a total option value $0.2&nbsp;million and a total market value on the date
of exercise of $0.2&nbsp;million.&#160; During
the six months ended June&nbsp;30, 2010, we granted 4,000 shares of restricted
common stock at $25.95 per share, 1,000 shares of restricted common stock at
$25.04 per share, and 11,030 shares of restricted common stock at $26.53 per
share.&#160; These shares vest ratably over a
three-year period from the grant date.&#160;
Also, during the six months ended June&nbsp;30, 2010, we granted 99,661
shares of restricted common stock at $26.53 per share. These shares vest
ratably over a five-year period with the first date of vesting beginning in December&nbsp;31,
2010.</font></p>

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:11.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:11.0pt;">Our Board of Directors
authorized a share repurchase program enabling us to repurchase up to 5,000,000
shares of our equity securities, including common and preferred
securities.&#160; We continue to have an open
Board authorization to purchase an additional 3,360,237 shares in total of our
equity securities.</font></p>

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:11.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:11.0pt;">On August&nbsp;5, 2009,
we entered into an equity distribution agreement with KeyBanc Capital Markets,&nbsp;Inc.
(or KeyBanc) to issue and sell, from time to time, up to $75.0&nbsp;million in
aggregate offering price of our common shares.&#160;
Sales of common shares are made by means of ordinary brokers&#146;
transactions at market prices, in block transactions, or as otherwise agreed
between us and KeyBanc.&#160; During the six
months ended June&nbsp;30, 2010, we sold 365,000 shares of common stock at a
weighted average price, including fees, of $26.45 per share, resulting in net
proceeds of $9.7&nbsp;million after $0.2&nbsp;million of fees. At June&nbsp;30,
2010, we had $64.3&nbsp;million available under this equity distribution
agreement.</font></p>

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:11.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><i><font size="2" face="Times New Roman" style="font-size:11.0pt;font-style:italic;">Available
Shelf Registration.</font></i><font size="2" style="font-size:11.0pt;">
On June&nbsp;9, 2010, we filed a Form&nbsp;S-3 &#147;shelf&#148; registration statement
which became effective June&nbsp;16, 2010, to replace our prior shelf
registration statement.&#160; Our current
shelf registration statement provides us with the capacity to offer up to $400.0&nbsp;million
in common stock, preferred stock, warrants, debt, depositary shares, or
units.&#160; We may from time to time raise
capital under our current shelf registration in amounts, at prices, and on
terms to be announced when and if the securities are offered. The specifics of
any future offerings, along with the use of proceeds of any securities offered,
will be described in detail in a prospectus supplement, or other offering
materials, at the time of the offering.</font></p>

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:11.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><i><font size="2" face="Times New Roman" style="font-size:11.0pt;font-style:italic;">Liquidity.&#160; </font></i><font size="2" style="font-size:11.0pt;">We expect our future income and ability to make
distributions from cash flows from operations to depend on the collectibility
of our rents and mortgage loans receivable.&#160;
The collection of these loans and rents will be dependent, in large part,
upon the successful operation by the operators of the skilled nursing
properties, assisted living properties, other properties and schools we own or
are pledged to us.&#160; Other properties
consist of independent living properties and properties providing any
combination of skilled nursing, assisted living and/or independent living
services.&#160; The operating results of the
facilities will be impacted by various factors over which the operators/owners
may&nbsp;have no control.&#160; Those factors
include, without limitation, the status of the economy, changes in supply of or
demand for competing long-term healthcare facilities, ability to control rising
operating costs, and the potential for significant reforms in the long-term
healthcare industry.&#160; In addition, our
future growth in net income and cash flow may&nbsp;be adversely impacted by
various proposals for changes in the governmental regulations and financing of
the long-term healthcare industry.&#160; We
cannot presently predict what impact these proposals may&nbsp;have, if any.&#160; We believe that an adequate provision has
been made for the possibility of loans proving uncollectible but we will
continually evaluate the financial status of the </font></p>

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<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:11.0pt;">operations of the skilled
nursing facilities, assisted living facilities, other facilities and the
school.&#160; In addition, we will monitor our
borrowers and the underlying collateral for mortgage loans and will make future
revisions to the provision, if considered necessary.</font></p>

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:11.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:11.0pt;">Our investments,
principally our investments in mortgage loans and owned properties, are subject
to the possibility of loss of their carrying values as a result of changes in
market prices, interest rates and inflationary expectations.&#160; The effects on interest rates may&nbsp;affect
our costs of financing our operations and the fair market value of our
financial assets.&#160; Generally our loans
have predetermined increases in interest rates and our leases have agreed upon
annual increases.&#160; Inasmuch as we may
initially fund some of our investments with variable interest rate debt, we
would be at risk of net interest margin deterioration if medium and long-term
rates were to increase.&#160; As of
June&nbsp;30, 2010, our debt of $3.7&nbsp;million, excluding our Unsecured
Credit Agreement, was at a variable interest rate.</font></p>

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:11.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:11.0pt;">At June&nbsp;30, 2010, we
had $5.5&nbsp;million of cash on hand, $69.0&nbsp;million available on our
$110.0&nbsp;million Unsecured Credit Agreement which matures July&nbsp;17, 2011
and our potential ability to access the capital markets through the issuance of
$64.3&nbsp;million of common stock under our equity distribution agreement and
through the issuance of debt and/or equity securities under our
$400.0&nbsp;million effective shelf registration.&#160; Subsequent to June&nbsp;30, 2010, we
completed the sale to affiliates and managed accounts of Prudential of
$25.0&nbsp;million aggregate principal amount of 5.26% senior unsecured term
notes due July&nbsp;14, 2015 and $25.0&nbsp;million aggregate principal amount
of 5.74% senior unsecured term notes due January&nbsp;14, 2019.&#160; Also, we entered into an uncommitted private
shelf agreement with Prudential which provides for the possible issuance of up
to an additional $50.0&nbsp;million of senior unsecured fixed-rate term notes
during the three-year issuance period.&#160;
The proceeds from the $50.0&nbsp;million senior unsecured term notes
were used to repay $41.0&nbsp;million under our Unsecured Credit
Agreement.&#160; After this repayment we have
no outstanding balance under our Unsecured Credit Agreement and
$110.0&nbsp;million available for borrowing.</font></p>

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:11.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:11.0pt;">We believe that our
current cash balance, cash flow from operations available for distribution or
reinvestment, our current Unsecured Credit Agreement borrowing capacity and our
uncommitted private shelf agreement with Prudential are sufficient to provide
for payment of our current operating costs, meet debt obligations, provide
funds for distribution to the holders of our preferred stock and pay common
dividends at least sufficient to maintain our REIT status and repay borrowings
at, or prior to, their maturity.&#160; The
timing, source and amount of cash flows provided by financing activities and
used in investing activities are sensitive to the capital markets environment,
especially to changes in interest rates.&#160;
We continuously evaluate the availability of cost-effective capital and
believe we have sufficient liquidity for additional capital investments in
2010.</font></p>

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:11.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;"><b><font size="2" face="Times New Roman" style="font-size:11.0pt;font-weight:bold;">Critical
Accounting Policies</font></b></p>

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><i><font size="2" face="Times New Roman" style="font-size:11.0pt;font-style:italic;">&nbsp;</font></i></p>

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><i><font size="2" face="Times New Roman" style="font-size:11.0pt;font-style:italic;">Revenue
Recognition.</font></i><font size="2" style="font-size:11.0pt;">&#160; Base rents under operating leases are accrued
as earned over the terms of the leases.&#160;
Substantially all of our leases contain provisions for specified annual
increases over the rents of the prior year.&#160;
Rental revenues relating to leases that contain specified rental
increases over the life of the lease are recognized on the straight-line basis
when we believe that all of the rent related to a particular lease will be
collected according to the terms of the lease.&#160;
We will fully reserve straight-line rental income if the lessee becomes
delinquent in rent owed under the terms of the lease and we will evaluate the
collectibility of the related straight-line rent asset.</font></p>

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:11.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:11.0pt;">Interest on mortgage
loans is recognized using the effective interest method.&#160; We consider a loan to be non-performing after
60 days of non-payment of amounts due and do not recognize unpaid mortgage
interest income from that loan until the amounts have been received.&#160; If our evaluation of the collectibility of
our mortgage loans receivable indicates we may not recover the full value of
the receivable, we provide a reserve against the portion of the receivable that
we estimate may not be recovered.&#160; This
analysis requires us to determine whether there are factors indicating a
receivable may not be fully collectible and to estimate the amount of the
receivable that may not be collected.</font></p>

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:11.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:11.0pt;">If the collectibility of
revenue is determined incorrectly, the amount and timing of our reported
revenue could be significantly affected.&#160;
If our evaluation indicates that collectibility is not reasonably
assured we may place an investment on non-accrual status (i.e. we have stopped
booking rent and/or interest </font></p>

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<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:11.0pt;">on an accrual basis for a
particular lease and/or mortgage loan because the collection of rent and/or
interest is uncertain) or reserve against all or a portion of current income as
provisions for doubtful accounts. &#160;If our
assumptions or estimates regarding the collectibility of future rent payments
related to a lease change, we may have to record a reserve or write-off the
existing related straight-line rent asset.&#160;
The ultimate amount of straight-line rental income we realize could be
less than amounts recorded.&#160; If our
assumptions or estimates regarding the collectibility of a mortgage loan
receivable change in the future, we may have to record a reserve to reduce the
carrying value of the mortgage loan receivable (see &#147;Allowance for Loan Losses&#148;
below).&#160; During the six months ended
June&nbsp;30, 2010 and 2009, we recorded $1.9&nbsp;million and
$2.2&nbsp;million, respectively, in straight-line rental income.&#160; Also during each of the six months ended
June&nbsp;30, 2010 and 2009, we recorded an additional reserve of
$0.4&nbsp;million on our straight-line rent asset.&#160; At June&nbsp;30, 2010 and December&nbsp;31,
2009, the straight-line rent receivable balance, net of reserves, recorded on
the balance sheet was $18.7&nbsp;million and $17.3&nbsp;million, respectively.</font></p>

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:11.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><i><font size="2" face="Times New Roman" style="font-size:11.0pt;font-style:italic;">Allowance
for Loan Losses.</font></i><font size="2" style="font-size:11.0pt;">&#160; Mortgage loans receivable are recorded on an
amortized cost basis.&#160; We maintain a
valuation allowance based upon the expected collectibility of our mortgage
loans receivable.&#160; The allowance for loan
losses is maintained at a level believed adequate to absorb potential losses in
our loans receivable.&#160; Changes in the
valuation allowance are included in current period earnings.</font></p>

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:11.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:11.0pt;">The determination of the
allowance is based on a quarterly evaluation of all outstanding loans.&#160; If this evaluation indicates that there is a
greater risk of loan charge-offs, additional allowances or placement on
non-accrual status may be required.&#160; We
evaluate the collectibility of our mortgage loans receivable based on a
combination of factors, including, but not limited to, delinquency status,
historical loan charge-offs, financial strength of the borrower and guarantors
and the value of the underlying property.&#160;
During the six months ended June&nbsp;30, 2010, we recorded a
$0.8&nbsp;million increase in our allowance for loan loss reserve resulting
primarily from a borrower ceasing operations in a private school property
securing a mortgage loan partially offset by a reduction in our allowance for
loan loss reserve resulting from regularly scheduled principal payments.&#160; During the six months ended June&nbsp;30,
2009, we recorded a $20,000 decrease in our allowance for loan loss reserve
resulting from loan payoffs and regularly scheduled principal payments.&#160; The allowance for loan losses balance was
$1.5&nbsp;million and $0.7&nbsp;million at June&nbsp;30, 2010 and December&nbsp;31,
2009, respectively.</font></p>

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:11.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><i><font size="2" face="Times New Roman" style="font-size:11.0pt;font-style:italic;">Impairment
of Long-Lived Assets.</font></i><font size="2" style="font-size:11.0pt;">&#160;&#160; We review our long-lived
assets for potential impairment indicators quarterly.&#160; Impairment losses are recorded when events or
changes in circumstances indicate the asset is impaired and the estimated
undiscounted cash flows to be generated by the asset are less than its carrying
amount. Management assesses the impairment of properties individually and
impairment losses are calculated as the excess of the carrying amount over the
fair value of assets to be held and used, and the carrying amount over the fair
value less cost to sell in instances where management has determined that we
will dispose of the property.&#160; In determining
fair value, we use current appraisals or other third party opinions of value
and other estimates of fair value such as estimated discounted future cash
flows.</font></p>

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:11.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:11.0pt;">We evaluate the carrying
values of mortgage loans receivable on an individual basis.&#160; Management periodically evaluates the realizability
of future cash flows from the mortgages when events or circumstances, such as
the non-receipt of principal and interest payments and/or significant
deterioration of the financial condition of the borrower, indicate that the
carrying amount of the mortgage loan receivable may not be recoverable.&#160; An impairment charge is recognized in current
period earnings and is calculated as the difference between the carrying amount
of the mortgage loan receivable and the discounted cash flows expected to be
received, or if foreclosure is probable, the fair value of the collateral
securing the mortgage.</font></p>

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:11.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:11.0pt;">This analysis requires us
to determine if indicators of impairment exist and to estimate the most likely
stream of cash flows to be generated by the asset (if the asset is going to be
held) or the fair value less estimated cost to sell (if the asset is going to
be sold).&#160; If our assumptions,
projections or estimates regarding an asset change in the future, we may have
to record an impairment charge to reduce or further reduce the net book value
of such asset.&#160; During the six months
ended June&nbsp;30, 2010 and 2009, we did not recognize any impairment charges.</font></p>

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:11.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:11.0pt;">When an investment is
considered impaired, we determine whether that impairment is
other-than-temporary and the measurement of an impairment loss. The FASB
provides accounting considerations </font></p>

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<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">34<a name="PB_34_230331_563"></a></font></p>

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<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:11.0pt;">subsequent to the
recognition of an other-than-temporary impairment and requires disclosures
about unrealized losses that have not been recognized as other-than-temporary
impairments.</font></p>

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:11.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><i><font size="2" face="Times New Roman" style="font-size:11.0pt;font-style:italic;">Depreciation
and Useful Lives.</font></i><font size="2" style="font-size:11.0pt;">&#160; Land, buildings and improvements are recorded
at the lower of depreciated cost or fair value.&#160;
The allocation of the cost between land and building, and the determination
of the useful life of a property are based on management&#146;s estimates.&#160; We calculate depreciation on our buildings
and improvements using the straight-line method based on estimated useful lives
generally ranging from 35 to 40 years for buildings, 10 to 20 years for
building improvements, 7 to 10 years for equipment and 3 to 5 years for
computer equipment.&#160; We review and adjust
useful lives periodically.&#160; If we do not
allocate appropriately between land and building or we incorrectly estimate the
useful lives of our assets, our computation of depreciation and amortization
will not appropriately reflect the usage of the assets over future
periods.&#160; If we overestimate the useful
life of an asset, the depreciation expense related to the asset will be understated,
which could result in an impairment charge in the future.&#160; For the six months ended June&nbsp;30, 2010
and 2009, we recorded depreciation and amortization expense of
$7.9&nbsp;million and $7.4&nbsp;million, respectively.</font></p>

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:11.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:11.0pt;">For further discussion of
our critical accounting policies, see <i>Item 8. FINANCIAL
STATEMENT&#151;Note 2. Summary of Significant Accounting Policies</i> to our
consolidated financial statements included in our Annual Report filed on
Form&nbsp;10-K for the year ended December&nbsp;31, 2009.</font></p>

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:11.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;"><b><font size="2" face="Times New Roman" style="font-size:11.0pt;font-weight:bold;">Item 3.&#160;
QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK</font></b><a name="Item3_QuantitativeAndQualitativeD_230354"></a></p>

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:11.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:11.0pt;">There were no material
changes in our market risk during the six months ended June&nbsp;30, 2010.&#160; For additional information, refer to Item 7A
as presented in our Annual Report on Form&nbsp;10-K for the year ended December&nbsp;31,
2009.</font></p>

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:11.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;"><b><font size="2" face="Times New Roman" style="font-size:11.0pt;font-weight:bold;">Item 4.&#160;
CONTROLS AND PROCEDURES</font></b><a name="Item4_ControlsAndProcedures_230355"></a></p>

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:11.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:11.0pt;">Our management, with the
participation of our Chief Executive Officer and Chief Financial Officer, has
evaluated the effectiveness of our disclosure controls and procedures (as such
term is defined in Rules&nbsp;13a-15(e)&nbsp;and 15d-15(e)&nbsp;under the
Securities and Exchange Act of 1934, as amended). As of the end of the period
covered by this report based on such evaluation our Chief Executive Officer and
Chief Financial Officer have concluded that, as of the end of such period, our
disclosure controls and procedures were effective.</font></p>

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:11.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:11.0pt;">There has been no change
in our internal control over financial reporting during the period covered by
this report that has materially affected, or is reasonably likely to materially
affect, our internal control over financial reporting.</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">35<a name="PB_35_230401_9497"></a></font></p>

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<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><b><font size="3" face="Times New Roman" style="font-size:12.0pt;font-weight:bold;">PART&nbsp;II</font></b><a name="Partii_001310"></a></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><b><font size="3" face="Times New Roman" style="font-size:12.0pt;font-weight:bold;">OTHER
INFORMATION</font></b></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;"><b><font size="2" face="Times New Roman" style="font-size:11.0pt;font-weight:bold;">Statement
Regarding Forward Looking Disclosure</font></b></p>

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><i><font size="2" face="Times New Roman" style="font-size:11.0pt;font-style:italic;">&nbsp;</font></i></p>

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><i><font size="2" face="Times New Roman" style="font-size:11.0pt;font-style:italic;">This
quarterly report contains forward-looking statements within the meaning of Section&nbsp;27A
of the Securities Act of 1933, as amended, and Section&nbsp;21E of the
Securities Exchange Act of 1934, as amended, adopted pursuant to the Private
Securities Litigation Reform Act of 1995.&#160;
Statements that are not purely historical may be forward-looking.&#160; You can identify some of the forward-looking
statements by their use of forward-looking words, such as &#145;&#145;believes,&#146;&#146; &#145;&#145;expects,&#146;&#146;
&#145;&#145;may,&#146;&#146; &#145;&#145;will,&#146;&#146; &#145;&#145;should,&#146;&#146; &#145;&#145;seeks,&#146;&#146; &#145;&#145;approximately,&#146;&#146; &#145;&#145;intends,&#146;&#146; &#145;&#145;plans,&#146;&#146;
&#145;&#145;estimates&#146;&#146; or &#145;&#145;anticipates,&#146;&#146; or the negative of those words or similar
words.&#160; Forward- looking statements
involve inherent risks and uncertainties regarding events, conditions and
financial trends that may affect our future plans of operation, business
strategy, results of operations and financial position.&#160; A number of important factors could cause
actual results to differ materially from those included within or contemplated
by such forward-looking statements, including, but not limited to, the status
of the economy, the status of capital markets (including prevailing interest
rates), and our access to capital; the income and returns available from
investments in health care related real estate, the ability of our borrowers
and lessees to meet their obligations to us, our reliance on a few major
operators; competition faced by our borrowers and lessees within the health
care industry, regulation of the health care industry by federal, state and
local governments, compliance with and changes to regulations and payment
policies within the health care industry, debt that we may incur and changes in
financing terms, our ability to continue to qualify as a real estate investment
trust, the relative illiquidity of our real estate investments, potential
limitations on our remedies when mortgage loans default, and risks and
liabilities in connection with properties owned through limited liability
companies and partnerships.&#160; For a
discussion of these and other factors that could cause actual results to differ
from those contemplated in the forward-looking statements, please see the
discussion under &#145;&#145;Risk Factors&#146;&#146; contained in our Annual Report on Form&nbsp;10-K
for the fiscal year ended December&nbsp;31, 2009 and in our publicly available
filings with the Securities and Exchange Commission.&#160; We do not undertake any responsibility to
update or revise any of these factors or to announce publicly any revisions to
forward-looking statements, whether as a result of new information, future
events or otherwise.</font></i></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:11.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;"><b><font size="2" face="Times New Roman" style="font-size:11.0pt;font-weight:bold;">Item
1.&#160; Legal Proceedings</font></b><a name="Item1_LegalProceedings_001326"></a></p>

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:11.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:11.0pt;">We are a party from time
to time to various general and professional liability claims and lawsuits
asserted against the lessees or borrowers of our properties, which in our
opinion are not singularly or in the aggregate material to our results of
operations or financial condition. These types of claims and lawsuits may
include matters involving general or professional liability, which we believe
under applicable legal principles are not our responsibility as a
non-possessory landlord or mortgage holder. We believe that these matters are
the responsibility of our lessees and borrowers pursuant to general legal
principles and pursuant to insurance and indemnification provisions in the
applicable leases or mortgages. We intend to continue to vigorously defend such
claims.</font></p>

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:11.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;"><b><font size="2" face="Times New Roman" style="font-size:11.0pt;font-weight:bold;">Item
1A.&#160; Risk Factors</font></b><a name="Item1a_RiskFactors_001328"></a></p>

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:11.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:11.0pt;">There have been no
material changes from the risk factors as previously disclosed in our Annual
Report on Form&nbsp;10-K for the fiscal year ended December&nbsp;31, 2009.</font></p>

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<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">36<a name="PB_36_230506_3641"></a></font></p>

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<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;"><b><font size="2" face="Times New Roman" style="font-size:11.0pt;font-weight:bold;">Item
6.&#160; Exhibits</font></b><a name="Item6_Exhibits_001330"></a></p>

<p style="margin:0in 0in .0001pt 1.5in;text-indent:-.5in;"><font size="2" face="Times New Roman" style="font-size:11.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt 1.5in;text-indent:-.5in;"><font size="2" face="Times New Roman" style="font-size:11.0pt;">3.1</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:11.0pt;">LTC Properties,&nbsp;Inc. Articles of
Restatement (incorporated by reference to Exhibit&nbsp;3.1 to LTC Properties
Inc.&#146;s Form&nbsp;10-Q for the quarter ended June&nbsp;30, 2009)</font></p>

<p style="margin:0in 0in .0001pt 1.5in;text-indent:-.5in;"><font size="2" face="Times New Roman" style="font-size:11.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt 1.5in;text-indent:-.5in;"><font size="2" face="Times New Roman" style="font-size:11.0pt;">3.2</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:11.0pt;">Bylaws of LTC Properties,&nbsp;Inc., as
amended and restated August&nbsp;3, 2009 (incorporated by reference to Exhibit&nbsp;3.2
to LTC Properties Inc.&#146;s Form&nbsp;10-Q for the quarter ended June&nbsp;30,
2009)</font></p>

<p style="margin:0in 0in .0001pt 1.5in;text-indent:-.5in;"><font size="2" face="Times New Roman" style="font-size:11.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt 1.5in;text-indent:-.5in;"><font size="2" face="Times New Roman" style="font-size:11.0pt;">10.1</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:11.0pt;">Note Purchase and Private Shelf Agreement between LTC
Properties,&nbsp;Inc. and Prudential Investment Management,&nbsp;Inc. dated July&nbsp;14,
2010</font></p>

<p style="margin:0in 0in .0001pt 1.5in;text-indent:-.5in;"><font size="2" face="Times New Roman" style="font-size:11.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt 1.5in;text-indent:-.5in;"><font size="2" face="Times New Roman" style="font-size:11.0pt;">31.1</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:11.0pt;">Certification of the Chief Executive Officer pursuant
to Section&nbsp;302 of the Sarbanes-Oxley Act of 2002</font></p>

<p style="margin:0in 0in .0001pt 1.5in;text-indent:-.5in;"><font size="2" face="Times New Roman" style="font-size:11.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt 1.5in;text-indent:-.5in;"><font size="2" face="Times New Roman" style="font-size:11.0pt;">31.2</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:11.0pt;">Certification of the Chief Financial Officer pursuant
to Section&nbsp;302 of the Sarbanes-Oxley Act of 2002</font></p>

<p style="margin:0in 0in .0001pt 1.5in;text-indent:-.5in;"><font size="2" face="Times New Roman" style="font-size:11.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt 1.5in;text-indent:-.5in;"><font size="2" face="Times New Roman" style="font-size:11.0pt;">32</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:11.0pt;">Certifications pursuant to 18 U.S.C. Section&nbsp;1350,
as adopted pursuant to Section&nbsp;906 of the Sarbanes-Oxley Act of 2002</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">37<a name="PB_37_230519_5250"></a></font></p>

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<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><b><font size="3" face="Times New Roman" style="font-size:12.0pt;font-weight:bold;">SIGNATURES</font></b></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:11.0pt;">Pursuant to the
requirements of the Securities Exchange Act of 1934, the registrant has duly
caused this report to be signed on its behalf by the undersigned, thereunto
duly authorized.</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:11.0pt;">&nbsp;</font></p>

<table border="0" cellspacing="0" cellpadding="0" width="100%" style="border-collapse:collapse;width:100.0%;">
 <tr>
  <td width="50%" valign="top" style="padding:0in 0in 0in 0in;width:50.26%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="49%" valign="top" style="padding:0in 0in 0in 0in;width:49.74%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:11.0pt;">LTC
  PROPERTIES,&nbsp;INC.</font></p>
  </td>
 </tr>
 <tr>
  <td width="50%" valign="top" style="padding:0in 0in 0in 0in;width:50.26%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="49%" valign="top" style="padding:0in 0in 0in 0in;width:49.74%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:11.0pt;">Registrant</font></p>
  </td>
 </tr>
</table>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:11.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:11.0pt;">&nbsp;</font></p>

<table border="0" cellspacing="0" cellpadding="0" width="100%" style="border-collapse:collapse;width:100.0%;">
 <tr>
  <td width="50%" valign="top" style="padding:0in 0in 0in 0in;width:50.26%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:11.0pt;">Dated: August&nbsp;2,
  2010</font></p>
  </td>
  <td width="6%" valign="top" style="padding:0in 0in 0in 0in;width:6.16%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:11.0pt;">By:</font></p>
  </td>
  <td width="43%" valign="top" style="padding:0in 0in 0in 0in;width:43.58%;">
  <p style="margin:0in 0in .0001pt;"><u><font size="2" face="Times New Roman" style="font-size:11.0pt;">/s/ PAMELA
  SHELLEY-KESSLER</font></u></p>
  </td>
 </tr>
 <tr>
  <td width="50%" valign="top" style="padding:0in 0in 0in 0in;width:50.26%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="6%" valign="top" style="padding:0in 0in 0in 0in;width:6.16%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="43%" valign="top" style="padding:0in 0in 0in 0in;width:43.58%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:11.0pt;">Pamela Shelley-Kessler</font></p>
  </td>
 </tr>
 <tr>
  <td width="50%" valign="top" style="padding:0in 0in 0in 0in;width:50.26%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="6%" valign="top" style="padding:0in 0in 0in 0in;width:6.16%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="43%" valign="top" style="padding:0in 0in 0in 0in;width:43.58%;">
  <p style="margin:0in 0in .0001pt .1in;text-indent:-.1in;"><font size="2" face="Times New Roman" style="font-size:11.0pt;">Senior
  Vice President, Chief Financial Officer <br>
  and Corporate Secretary</font></p>
  </td>
 </tr>
 <tr>
  <td width="50%" valign="top" style="padding:0in 0in 0in 0in;width:50.26%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="6%" valign="top" style="padding:0in 0in 0in 0in;width:6.16%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="43%" valign="top" style="padding:0in 0in 0in 0in;width:43.58%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:11.0pt;">(Principal Financial
  and Accounting Officer)</font></p>
  </td>
 </tr>
</table>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">38<a name="PB_38_230544_7672"></a></font></p>

<div style="margin:0in 0in .0001pt;"><hr size="3" width="100%" noshade color="#010101" align="left"></div>

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<TYPE>EX-10.1
<SEQUENCE>2
<FILENAME>a10-12718_1ex10d1.htm
<DESCRIPTION>EX-10.1
<TEXT>

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<div>

<p align="right" style="margin:0in 0in .0001pt;text-align:right;"><b><font size="3" face="Times New Roman" style="font-size:12.0pt;font-weight:bold;">EXHIBIT
10.1</font></b></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">&nbsp;</font></b></p>

<div style="border:none;border-bottom:solid windowtext 1.0pt;padding:0in 0in 1.0pt 0in;">

<p align="center" style="border:none;margin:0in 0in .0001pt;padding:0in;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">&nbsp;</font></b></p>

</div>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">&nbsp;</font></b></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">&nbsp;</font></b></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">&nbsp;</font></b></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><b><font size="5" face="Times New Roman" style="font-size:16.0pt;font-weight:bold;">LTC PROPERTIES, INC.</font></b></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">&nbsp;</font></b></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">&nbsp;</font></b></p>

<div align="center" style="margin:0in 0in .0001pt;text-align:center;"><b><font size="3" face="Times New Roman" style="font-size:12.0pt;font-weight:bold;">

<hr size="1" width="25%" noshade color="black" align="center">

</font></b></div>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">&nbsp;</font></b></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><b><font size="5" face="Times New Roman" style="font-size:16.0pt;font-weight:bold;">NOTE
PURCHASE AND PRIVATE SHELF AGREEMENT</font></b></p>

<p style="font-weight:bold;margin:0in 0in .0001pt;page-break-after:auto;text-align:center;text-transform:uppercase;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></b></p>

<div style="font-weight:bold;margin:0in 0in .0001pt;page-break-after:auto;text-align:center;text-transform:uppercase;"><b><font size="3" face="Times New Roman" style="font-size:12.0pt;">

<hr size="1" width="25%" noshade color="black" align="center">

</font></b></div>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">&nbsp;</font></b></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><b><font size="3" face="Times New Roman" style="font-size:12.0pt;font-weight:bold;">5.26% Series A-1 Senior Notes Due
July 14, 2015</font></b></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><b><font size="3" face="Times New Roman" style="font-size:12.0pt;font-weight:bold;">($25,000,000 Aggregate Original
Principal Amount)</font></b></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">&nbsp;</font></b></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">&nbsp;</font></b></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><b><font size="3" face="Times New Roman" style="font-size:12.0pt;font-weight:bold;">5.74% Series A-2 Senior Notes Due
January 14, 2019</font></b></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><b><font size="3" face="Times New Roman" style="font-size:12.0pt;font-weight:bold;">($25,000,000 Aggregate Original
Principal Amount)</font></b></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">&nbsp;</font></b></p>

<p align="center" style="margin:0in -.1in .0001pt 0in;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">&nbsp;</font></b></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><b><font size="3" face="Times New Roman" style="font-size:12.0pt;font-weight:bold;">$50,000,000 Private Shelf
Facility</font></b></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">&nbsp;</font></b></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">&nbsp;</font></b></p>

<p style="font-weight:bold;margin:0in 0in .0001pt;page-break-after:avoid;text-align:center;text-transform:uppercase;"><b><font size="3" face="Times New Roman" style="font-size:12.0pt;text-transform:none;">July 14, 2010</font></b></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">&nbsp;</font></b></p>

<div style="border:none;border-bottom:solid windowtext 1.0pt;padding:0in 0in 1.0pt 0in;">

<p align="center" style="border:none;margin:0in 0in .0001pt;padding:0in;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">&nbsp;</font></b></p>

</div>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<div style="margin:0in 0in .0001pt;"><hr size="3" width="100%" noshade color="#010101" align="left"></div>

</div>
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<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><b><u><font size="2" face="Times New Roman" style="font-size:11.0pt;font-weight:bold;text-transform:uppercase;">Table of Contents</font></u></b></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:11.0pt;">&nbsp;</font></p>

<table border="0" cellspacing="0" cellpadding="0" width="100%" style="border-collapse:collapse;width:100.0%;">
 <tr>
  <td width="6%" valign="top" style="padding:0in 0in 0in 0in;width:6.84%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="87%" colspan="4" valign="top" style="padding:0in 0in 0in 0in;width:87.34%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="5%" colspan="2" valign="top" style="padding:0in 0in 0in 0in;width:5.82%;">
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><u><font size="2" face="Times New Roman" style="font-size:11.0pt;">Page</font></u></p>
  </td>
 </tr>
 <tr>
  <td width="6%" valign="top" style="padding:0in 0in 0in 0in;width:6.84%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="87%" colspan="4" valign="top" style="padding:0in 0in 0in 0in;width:87.34%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="4%" valign="top" style="padding:0in 0in 0in 0in;width:4.32%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="1%" valign="top" style="padding:0in 0in 0in 0in;width:1.5%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="6%" valign="top" style="padding:0in 0in 0in 0in;width:6.84%;">
  <p style="margin:0in 0in .0001pt;"><a name="mpTableOfContents"><font size="3" face="Times New Roman" style="font-size:12.0pt;">1</font></a></p>
  </td>
  <td width="87%" colspan="4" valign="top" style="padding:0in 0in 0in 0in;width:87.34%;">
  <p style="margin:0in 0in .0001pt;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">Authorization of Notes</font></p>
  </td>
  <td width="4%" valign="top" style="padding:0in 0in 0in 0in;width:4.32%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">1</font></p>
  </td>
  <td width="1%" valign="top" style="padding:0in 0in 0in 0in;width:1.5%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="3" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="6%" valign="top" style="padding:0in 0in 0in 0in;width:6.84%;">
  <p style="margin:4.8pt 0in .0001pt;"><font size="3" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="7%" valign="top" style="padding:0in 0in 0in 0in;width:7.32%;">
  <p style="margin:4.8pt 0in .0001pt;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">1A</font></p>
  </td>
  <td width="80%" colspan="3" valign="top" style="padding:0in 0in 0in 0in;width:80.02%;">
  <p style="margin:4.8pt 0in .0001pt;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">Authorization of Series A-1 Notes</font></p>
  </td>
  <td width="4%" valign="top" style="padding:0in 0in 0in 0in;width:4.32%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">1</font></p>
  </td>
  <td width="1%" valign="top" style="padding:0in 0in 0in 0in;width:1.5%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="3" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="6%" valign="top" style="padding:0in 0in 0in 0in;width:6.84%;">
  <p style="margin:4.8pt 0in .0001pt;"><font size="3" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="7%" valign="top" style="padding:0in 0in 0in 0in;width:7.32%;">
  <p style="margin:4.8pt 0in .0001pt;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">1B</font></p>
  </td>
  <td width="80%" colspan="3" valign="top" style="padding:0in 0in 0in 0in;width:80.02%;">
  <p style="margin:4.8pt 0in .0001pt;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">Authorization of Series A-2 Notes</font></p>
  </td>
  <td width="4%" valign="top" style="padding:0in 0in 0in 0in;width:4.32%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">1</font></p>
  </td>
  <td width="1%" valign="top" style="padding:0in 0in 0in 0in;width:1.5%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="3" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="6%" valign="top" style="padding:0in 0in 0in 0in;width:6.84%;">
  <p style="margin:4.8pt 0in .0001pt;"><font size="3" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="7%" valign="top" style="padding:0in 0in 0in 0in;width:7.32%;">
  <p style="margin:4.8pt 0in .0001pt;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">1C</font></p>
  </td>
  <td width="80%" colspan="3" valign="top" style="padding:0in 0in 0in 0in;width:80.02%;">
  <p style="margin:4.8pt 0in .0001pt;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">Authorization of Issue of Shelf Notes</font></p>
  </td>
  <td width="4%" valign="top" style="padding:0in 0in 0in 0in;width:4.32%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">2</font></p>
  </td>
  <td width="1%" valign="top" style="padding:0in 0in 0in 0in;width:1.5%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="3" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="6%" valign="top" style="padding:0in 0in 0in 0in;width:6.84%;">
  <p style="margin:4.8pt 0in .0001pt;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">2</font></p>
  </td>
  <td width="87%" colspan="4" valign="top" style="padding:0in 0in 0in 0in;width:87.34%;">
  <p style="margin:4.8pt 0in .0001pt;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">Sale And Purchase of Notes</font></p>
  </td>
  <td width="4%" valign="top" style="padding:0in 0in 0in 0in;width:4.32%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">2</font></p>
  </td>
  <td width="1%" valign="top" style="padding:0in 0in 0in 0in;width:1.5%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="3" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="6%" valign="top" style="padding:0in 0in 0in 0in;width:6.84%;">
  <p style="margin:4.8pt 0in .0001pt;"><font size="3" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="7%" valign="top" style="padding:0in 0in 0in 0in;width:7.32%;">
  <p style="margin:4.8pt 0in .0001pt;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">2A</font></p>
  </td>
  <td width="80%" colspan="3" valign="top" style="padding:0in 0in 0in 0in;width:80.02%;">
  <p style="margin:4.8pt 0in .0001pt;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">Sale and Purchase of Series A-1 Notes and Series A-2
  Notes</font></p>
  </td>
  <td width="4%" valign="top" style="padding:0in 0in 0in 0in;width:4.32%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">2</font></p>
  </td>
  <td width="1%" valign="top" style="padding:0in 0in 0in 0in;width:1.5%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="3" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="6%" valign="top" style="padding:0in 0in 0in 0in;width:6.84%;">
  <p style="margin:4.8pt 0in .0001pt;"><font size="3" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="7%" valign="top" style="padding:0in 0in 0in 0in;width:7.32%;">
  <p style="margin:4.8pt 0in .0001pt;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">2B</font></p>
  </td>
  <td width="80%" colspan="3" valign="top" style="padding:0in 0in 0in 0in;width:80.02%;">
  <p style="margin:4.8pt 0in .0001pt;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">Sale and Purchase of Shelf Notes</font></p>
  </td>
  <td width="4%" valign="top" style="padding:0in 0in 0in 0in;width:4.32%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">2</font></p>
  </td>
  <td width="1%" valign="top" style="padding:0in 0in 0in 0in;width:1.5%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="3" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="6%" valign="top" style="padding:0in 0in 0in 0in;width:6.84%;">
  <p style="margin:4.8pt 0in .0001pt;"><font size="3" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="7%" valign="top" style="padding:0in 0in 0in 0in;width:7.32%;">
  <p style="margin:4.8pt 0in .0001pt;"><font size="3" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="8%" valign="top" style="padding:0in 0in 0in 0in;width:8.1%;">
  <p style="margin:4.8pt 0in .0001pt;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">2B(1)</font></p>
  </td>
  <td width="71%" colspan="2" valign="top" style="padding:0in 0in 0in 0in;width:71.92%;">
  <p style="margin:4.8pt 0in .0001pt;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">Facility</font></p>
  </td>
  <td width="4%" valign="top" style="padding:0in 0in 0in 0in;width:4.32%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">2</font></p>
  </td>
  <td width="1%" valign="top" style="padding:0in 0in 0in 0in;width:1.5%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="3" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="6%" valign="top" style="padding:0in 0in 0in 0in;width:6.84%;">
  <p style="margin:4.8pt 0in .0001pt;"><font size="3" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="7%" valign="top" style="padding:0in 0in 0in 0in;width:7.32%;">
  <p style="margin:4.8pt 0in .0001pt;"><font size="3" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="8%" valign="top" style="padding:0in 0in 0in 0in;width:8.1%;">
  <p style="margin:4.8pt 0in .0001pt;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">2B(2)</font></p>
  </td>
  <td width="71%" colspan="2" valign="top" style="padding:0in 0in 0in 0in;width:71.92%;">
  <p style="margin:4.8pt 0in .0001pt;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">Issuance Period</font></p>
  </td>
  <td width="4%" valign="top" style="padding:0in 0in 0in 0in;width:4.32%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">3</font></p>
  </td>
  <td width="1%" valign="top" style="padding:0in 0in 0in 0in;width:1.5%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="3" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="6%" valign="top" style="padding:0in 0in 0in 0in;width:6.84%;">
  <p style="margin:4.8pt 0in .0001pt;"><font size="3" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="7%" valign="top" style="padding:0in 0in 0in 0in;width:7.32%;">
  <p style="margin:4.8pt 0in .0001pt;"><font size="3" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="8%" valign="top" style="padding:0in 0in 0in 0in;width:8.1%;">
  <p style="margin:4.8pt 0in .0001pt;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">2B(3)</font></p>
  </td>
  <td width="71%" colspan="2" valign="top" style="padding:0in 0in 0in 0in;width:71.92%;">
  <p style="margin:4.8pt 0in .0001pt;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">Request For Purchase</font></p>
  </td>
  <td width="4%" valign="top" style="padding:0in 0in 0in 0in;width:4.32%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">3</font></p>
  </td>
  <td width="1%" valign="top" style="padding:0in 0in 0in 0in;width:1.5%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="3" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="6%" valign="top" style="padding:0in 0in 0in 0in;width:6.84%;">
  <p style="margin:4.8pt 0in .0001pt;"><font size="3" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="7%" valign="top" style="padding:0in 0in 0in 0in;width:7.32%;">
  <p style="margin:4.8pt 0in .0001pt;"><font size="3" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="8%" valign="top" style="padding:0in 0in 0in 0in;width:8.1%;">
  <p style="margin:4.8pt 0in .0001pt;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">2B(4)</font></p>
  </td>
  <td width="71%" colspan="2" valign="top" style="padding:0in 0in 0in 0in;width:71.92%;">
  <p style="margin:4.8pt 0in .0001pt;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">Rate Quotes</font></p>
  </td>
  <td width="4%" valign="top" style="padding:0in 0in 0in 0in;width:4.32%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">3</font></p>
  </td>
  <td width="1%" valign="top" style="padding:0in 0in 0in 0in;width:1.5%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="3" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="6%" valign="top" style="padding:0in 0in 0in 0in;width:6.84%;">
  <p style="margin:4.8pt 0in .0001pt;"><font size="3" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="7%" valign="top" style="padding:0in 0in 0in 0in;width:7.32%;">
  <p style="margin:4.8pt 0in .0001pt;"><font size="3" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="8%" valign="top" style="padding:0in 0in 0in 0in;width:8.1%;">
  <p style="margin:4.8pt 0in .0001pt;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">2B(5)</font></p>
  </td>
  <td width="71%" colspan="2" valign="top" style="padding:0in 0in 0in 0in;width:71.92%;">
  <p style="margin:4.8pt 0in .0001pt;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">Acceptance</font></p>
  </td>
  <td width="4%" valign="top" style="padding:0in 0in 0in 0in;width:4.32%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">4</font></p>
  </td>
  <td width="1%" valign="top" style="padding:0in 0in 0in 0in;width:1.5%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="3" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="6%" valign="top" style="padding:0in 0in 0in 0in;width:6.84%;">
  <p style="margin:4.8pt 0in .0001pt;"><font size="3" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="7%" valign="top" style="padding:0in 0in 0in 0in;width:7.32%;">
  <p style="margin:4.8pt 0in .0001pt;"><font size="3" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="8%" valign="top" style="padding:0in 0in 0in 0in;width:8.1%;">
  <p style="margin:4.8pt 0in .0001pt;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">2B(6)</font></p>
  </td>
  <td width="71%" colspan="2" valign="top" style="padding:0in 0in 0in 0in;width:71.92%;">
  <p style="margin:4.8pt 0in .0001pt;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">Market Disruption</font></p>
  </td>
  <td width="4%" valign="top" style="padding:0in 0in 0in 0in;width:4.32%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">4</font></p>
  </td>
  <td width="1%" valign="top" style="padding:0in 0in 0in 0in;width:1.5%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="3" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="6%" valign="top" style="padding:0in 0in 0in 0in;width:6.84%;">
  <p style="margin:4.8pt 0in .0001pt;"><font size="3" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="7%" valign="top" style="padding:0in 0in 0in 0in;width:7.32%;">
  <p style="margin:4.8pt 0in .0001pt;"><font size="3" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="8%" valign="top" style="padding:0in 0in 0in 0in;width:8.1%;">
  <p style="margin:4.8pt 0in .0001pt;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">2B(7)</font></p>
  </td>
  <td width="71%" colspan="2" valign="top" style="padding:0in 0in 0in 0in;width:71.92%;">
  <p style="margin:4.8pt 0in .0001pt;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">Facility Closings</font></p>
  </td>
  <td width="4%" valign="top" style="padding:0in 0in 0in 0in;width:4.32%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">4</font></p>
  </td>
  <td width="1%" valign="top" style="padding:0in 0in 0in 0in;width:1.5%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="3" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="6%" valign="top" style="padding:0in 0in 0in 0in;width:6.84%;">
  <p style="margin:4.8pt 0in .0001pt;"><font size="3" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="7%" valign="top" style="padding:0in 0in 0in 0in;width:7.32%;">
  <p style="margin:4.8pt 0in .0001pt;"><font size="3" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="8%" valign="top" style="padding:0in 0in 0in 0in;width:8.1%;">
  <p style="margin:4.8pt 0in .0001pt;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">2B(8)</font></p>
  </td>
  <td width="71%" colspan="2" valign="top" style="padding:0in 0in 0in 0in;width:71.92%;">
  <p style="margin:4.8pt 0in .0001pt;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">Fees</font></p>
  </td>
  <td width="4%" valign="top" style="padding:0in 0in 0in 0in;width:4.32%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">5</font></p>
  </td>
  <td width="1%" valign="top" style="padding:0in 0in 0in 0in;width:1.5%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="3" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="6%" valign="top" style="padding:0in 0in 0in 0in;width:6.84%;">
  <p style="margin:4.8pt 0in .0001pt;"><font size="3" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="7%" valign="top" style="padding:0in 0in 0in 0in;width:7.32%;">
  <p style="margin:4.8pt 0in .0001pt;"><font size="3" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="8%" valign="top" style="padding:0in 0in 0in 0in;width:8.1%;">
  <p style="margin:4.8pt 0in .0001pt;"><font size="3" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="11%" valign="top" style="padding:0in 0in 0in 0in;width:11.24%;">
  <p style="margin:4.8pt 0in .0001pt;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">2B(8)(i)</font></p>
  </td>
  <td width="60%" valign="top" style="padding:0in 0in 0in 0in;width:60.68%;">
  <p style="margin:4.8pt 0in .0001pt;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">[Intentionally Omitted.]</font></p>
  </td>
  <td width="4%" valign="top" style="padding:0in 0in 0in 0in;width:4.32%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">5</font></p>
  </td>
  <td width="1%" valign="top" style="padding:0in 0in 0in 0in;width:1.5%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="3" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="6%" valign="top" style="padding:0in 0in 0in 0in;width:6.84%;">
  <p style="margin:4.8pt 0in .0001pt;"><font size="3" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="7%" valign="top" style="padding:0in 0in 0in 0in;width:7.32%;">
  <p style="margin:4.8pt 0in .0001pt;"><font size="3" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="8%" valign="top" style="padding:0in 0in 0in 0in;width:8.1%;">
  <p style="margin:4.8pt 0in .0001pt;"><font size="3" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="11%" valign="top" style="padding:0in 0in 0in 0in;width:11.24%;">
  <p style="margin:4.8pt 0in .0001pt;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">2B(8)(ii)</font></p>
  </td>
  <td width="60%" valign="top" style="padding:0in 0in 0in 0in;width:60.68%;">
  <p style="margin:4.8pt 0in .0001pt;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">[Intentionally Omitted.]</font></p>
  </td>
  <td width="4%" valign="top" style="padding:0in 0in 0in 0in;width:4.32%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">5</font></p>
  </td>
  <td width="1%" valign="top" style="padding:0in 0in 0in 0in;width:1.5%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="3" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="6%" valign="top" style="padding:0in 0in 0in 0in;width:6.84%;">
  <p style="margin:4.8pt 0in .0001pt;"><font size="3" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="7%" valign="top" style="padding:0in 0in 0in 0in;width:7.32%;">
  <p style="margin:4.8pt 0in .0001pt;"><font size="3" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="8%" valign="top" style="padding:0in 0in 0in 0in;width:8.1%;">
  <p style="margin:4.8pt 0in .0001pt;"><font size="3" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="11%" valign="top" style="padding:0in 0in 0in 0in;width:11.24%;">
  <p style="margin:4.8pt 0in .0001pt;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">2B(8)(iii)</font></p>
  </td>
  <td width="60%" valign="top" style="padding:0in 0in 0in 0in;width:60.68%;">
  <p style="margin:4.8pt 0in .0001pt;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">Delayed Delivery Fee</font></p>
  </td>
  <td width="4%" valign="top" style="padding:0in 0in 0in 0in;width:4.32%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">5</font></p>
  </td>
  <td width="1%" valign="top" style="padding:0in 0in 0in 0in;width:1.5%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="3" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="6%" valign="top" style="padding:0in 0in 0in 0in;width:6.84%;">
  <p style="margin:4.8pt 0in .0001pt;"><font size="3" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="7%" valign="top" style="padding:0in 0in 0in 0in;width:7.32%;">
  <p style="margin:4.8pt 0in .0001pt;"><font size="3" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="8%" valign="top" style="padding:0in 0in 0in 0in;width:8.1%;">
  <p style="margin:4.8pt 0in .0001pt;"><font size="3" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="11%" valign="top" style="padding:0in 0in 0in 0in;width:11.24%;">
  <p style="margin:4.8pt 0in .0001pt;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">2B(8)(iv)</font></p>
  </td>
  <td width="60%" valign="top" style="padding:0in 0in 0in 0in;width:60.68%;">
  <p style="margin:4.8pt 0in .0001pt;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">Cancellation Fee</font></p>
  </td>
  <td width="4%" valign="top" style="padding:0in 0in 0in 0in;width:4.32%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">6</font></p>
  </td>
  <td width="1%" valign="top" style="padding:0in 0in 0in 0in;width:1.5%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="3" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="6%" valign="top" style="padding:0in 0in 0in 0in;width:6.84%;">
  <p style="margin:4.8pt 0in .0001pt;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">3</font></p>
  </td>
  <td width="87%" colspan="4" valign="top" style="padding:0in 0in 0in 0in;width:87.34%;">
  <p style="margin:4.8pt 0in .0001pt;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">Series A Closing</font></p>
  </td>
  <td width="4%" valign="top" style="padding:0in 0in 0in 0in;width:4.32%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">6</font></p>
  </td>
  <td width="1%" valign="top" style="padding:0in 0in 0in 0in;width:1.5%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="3" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="6%" valign="top" style="padding:0in 0in 0in 0in;width:6.84%;">
  <p style="margin:4.8pt 0in .0001pt;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">4</font></p>
  </td>
  <td width="87%" colspan="4" valign="top" style="padding:0in 0in 0in 0in;width:87.34%;">
  <p style="margin:4.8pt 0in .0001pt;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">Conditions to Closing</font></p>
  </td>
  <td width="4%" valign="top" style="padding:0in 0in 0in 0in;width:4.32%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">7</font></p>
  </td>
  <td width="1%" valign="top" style="padding:0in 0in 0in 0in;width:1.5%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="3" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="6%" valign="top" style="padding:0in 0in 0in 0in;width:6.84%;">
  <p style="margin:4.8pt 0in .0001pt;"><font size="3" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="7%" valign="top" style="padding:0in 0in 0in 0in;width:7.32%;">
  <p style="margin:4.8pt 0in .0001pt;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">4A</font></p>
  </td>
  <td width="80%" colspan="3" valign="top" style="padding:0in 0in 0in 0in;width:80.02%;">
  <p style="margin:4.8pt 0in .0001pt;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">Conditions to Series A Closing</font></p>
  </td>
  <td width="4%" valign="top" style="padding:0in 0in 0in 0in;width:4.32%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">7</font></p>
  </td>
  <td width="1%" valign="top" style="padding:0in 0in 0in 0in;width:1.5%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="3" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="6%" valign="top" style="padding:0in 0in 0in 0in;width:6.84%;">
  <p style="margin:4.8pt 0in .0001pt;"><font size="3" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="7%" valign="top" style="padding:0in 0in 0in 0in;width:7.32%;">
  <p style="margin:4.8pt 0in .0001pt;"><font size="3" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="8%" valign="top" style="padding:0in 0in 0in 0in;width:8.1%;">
  <p style="margin:4.8pt 0in .0001pt;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">4A(1)</font></p>
  </td>
  <td width="71%" colspan="2" valign="top" style="padding:0in 0in 0in 0in;width:71.92%;">
  <p style="margin:4.8pt 0in .0001pt;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">Completion of Due Diligence</font></p>
  </td>
  <td width="4%" valign="top" style="padding:0in 0in 0in 0in;width:4.32%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">7</font></p>
  </td>
  <td width="1%" valign="top" style="padding:0in 0in 0in 0in;width:1.5%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="3" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="6%" valign="top" style="padding:0in 0in 0in 0in;width:6.84%;">
  <p style="margin:4.8pt 0in .0001pt;"><font size="3" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="7%" valign="top" style="padding:0in 0in 0in 0in;width:7.32%;">
  <p style="margin:4.8pt 0in .0001pt;"><font size="3" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="8%" valign="top" style="padding:0in 0in 0in 0in;width:8.1%;">
  <p style="margin:4.8pt 0in .0001pt;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">4A(2)</font></p>
  </td>
  <td width="71%" colspan="2" valign="top" style="padding:0in 0in 0in 0in;width:71.92%;">
  <p style="margin:4.8pt 0in .0001pt;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">Delivery of Credit Agreement and Modifications
  Thereto</font></p>
  </td>
  <td width="4%" valign="top" style="padding:0in 0in 0in 0in;width:4.32%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">7</font></p>
  </td>
  <td width="1%" valign="top" style="padding:0in 0in 0in 0in;width:1.5%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="3" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="6%" valign="top" style="padding:0in 0in 0in 0in;width:6.84%;">
  <p style="margin:4.8pt 0in .0001pt;"><font size="3" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="7%" valign="top" style="padding:0in 0in 0in 0in;width:7.32%;">
  <p style="margin:4.8pt 0in .0001pt;"><font size="3" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="8%" valign="top" style="padding:0in 0in 0in 0in;width:8.1%;">
  <p style="margin:4.8pt 0in .0001pt;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">4A(3)</font></p>
  </td>
  <td width="71%" colspan="2" valign="top" style="padding:0in 0in 0in 0in;width:71.92%;">
  <p style="margin:4.8pt 0in .0001pt;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">Consents</font></p>
  </td>
  <td width="4%" valign="top" style="padding:0in 0in 0in 0in;width:4.32%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">7</font></p>
  </td>
  <td width="1%" valign="top" style="padding:0in 0in 0in 0in;width:1.5%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="3" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="6%" valign="top" style="padding:0in 0in 0in 0in;width:6.84%;">
  <p style="margin:4.8pt 0in .0001pt;"><font size="3" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="7%" valign="top" style="padding:0in 0in 0in 0in;width:7.32%;">
  <p style="margin:4.8pt 0in .0001pt;"><font size="3" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="8%" valign="top" style="padding:0in 0in 0in 0in;width:8.1%;">
  <p style="margin:4.8pt 0in .0001pt;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">4A(4)</font></p>
  </td>
  <td width="71%" colspan="2" valign="top" style="padding:0in 0in 0in 0in;width:71.92%;">
  <p style="margin:4.8pt 0in .0001pt;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">Borrowing Base Certificate</font></p>
  </td>
  <td width="4%" valign="top" style="padding:0in 0in 0in 0in;width:4.32%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">7</font></p>
  </td>
  <td width="1%" valign="top" style="padding:0in 0in 0in 0in;width:1.5%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="3" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="6%" valign="top" style="padding:0in 0in 0in 0in;width:6.84%;">
  <p style="margin:4.8pt 0in .0001pt;"><font size="3" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="7%" valign="top" style="padding:0in 0in 0in 0in;width:7.32%;">
  <p style="margin:4.8pt 0in .0001pt;"><font size="3" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="8%" valign="top" style="padding:0in 0in 0in 0in;width:8.1%;">
  <p style="margin:4.8pt 0in .0001pt;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">4A(5)</font></p>
  </td>
  <td width="71%" colspan="2" valign="top" style="padding:0in 0in 0in 0in;width:71.92%;">
  <p style="margin:4.8pt 0in .0001pt;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">Payment of Special Counsel Fees</font></p>
  </td>
  <td width="4%" valign="top" style="padding:0in 0in 0in 0in;width:4.32%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">7</font></p>
  </td>
  <td width="1%" valign="top" style="padding:0in 0in 0in 0in;width:1.5%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="3" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="6%" valign="top" style="padding:0in 0in 0in 0in;width:6.84%;">
  <p style="margin:4.8pt 0in .0001pt;"><font size="3" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="7%" valign="top" style="padding:0in 0in 0in 0in;width:7.32%;">
  <p style="margin:4.8pt 0in .0001pt;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">4B</font></p>
  </td>
  <td width="80%" colspan="3" valign="top" style="padding:0in 0in 0in 0in;width:80.02%;">
  <p style="margin:4.8pt 0in .0001pt;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">Conditions to Each Closing</font></p>
  </td>
  <td width="4%" valign="top" style="padding:0in 0in 0in 0in;width:4.32%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">7</font></p>
  </td>
  <td width="1%" valign="top" style="padding:0in 0in 0in 0in;width:1.5%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="3" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="6%" valign="top" style="padding:0in 0in 0in 0in;width:6.84%;">
  <p style="margin:4.8pt 0in .0001pt;"><font size="3" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="7%" valign="top" style="padding:0in 0in 0in 0in;width:7.32%;">
  <p style="margin:4.8pt 0in .0001pt;"><font size="3" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="8%" valign="top" style="padding:0in 0in 0in 0in;width:8.1%;">
  <p style="margin:4.8pt 0in .0001pt;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">4B(1)</font></p>
  </td>
  <td width="71%" colspan="2" valign="top" style="padding:0in 0in 0in 0in;width:71.92%;">
  <p style="margin:4.8pt 0in .0001pt;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">Certain Documents</font></p>
  </td>
  <td width="4%" valign="top" style="padding:0in 0in 0in 0in;width:4.32%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">7</font></p>
  </td>
  <td width="1%" valign="top" style="padding:0in 0in 0in 0in;width:1.5%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="3" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="6%" valign="top" style="padding:0in 0in 0in 0in;width:6.84%;">
  <p style="margin:4.8pt 0in .0001pt;"><font size="3" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="7%" valign="top" style="padding:0in 0in 0in 0in;width:7.32%;">
  <p style="margin:4.8pt 0in .0001pt;"><font size="3" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="8%" valign="top" style="padding:0in 0in 0in 0in;width:8.1%;">
  <p style="margin:4.8pt 0in .0001pt;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">4B(2)</font></p>
  </td>
  <td width="71%" colspan="2" valign="top" style="padding:0in 0in 0in 0in;width:71.92%;">
  <p style="margin:4.8pt 0in .0001pt;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">Payment of Fees</font></p>
  </td>
  <td width="4%" valign="top" style="padding:0in 0in 0in 0in;width:4.32%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">8</font></p>
  </td>
  <td width="1%" valign="top" style="padding:0in 0in 0in 0in;width:1.5%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="3" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="6%" valign="top" style="padding:0in 0in 0in 0in;width:6.84%;">
  <p style="margin:4.8pt 0in .0001pt;"><font size="3" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="7%" valign="top" style="padding:0in 0in 0in 0in;width:7.32%;">
  <p style="margin:4.8pt 0in .0001pt;"><font size="3" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="8%" valign="top" style="padding:0in 0in 0in 0in;width:8.1%;">
  <p style="margin:4.8pt 0in .0001pt;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">4B(3)</font></p>
  </td>
  <td width="71%" colspan="2" valign="top" style="padding:0in 0in 0in 0in;width:71.92%;">
  <p style="margin:4.8pt 0in .0001pt;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">Representations and Warranties</font></p>
  </td>
  <td width="4%" valign="top" style="padding:0in 0in 0in 0in;width:4.32%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">9</font></p>
  </td>
  <td width="1%" valign="top" style="padding:0in 0in 0in 0in;width:1.5%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="3" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="6%" valign="top" style="padding:0in 0in 0in 0in;width:6.84%;">
  <p style="margin:4.8pt 0in .0001pt;"><font size="3" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="7%" valign="top" style="padding:0in 0in 0in 0in;width:7.32%;">
  <p style="margin:4.8pt 0in .0001pt;"><font size="3" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="8%" valign="top" style="padding:0in 0in 0in 0in;width:8.1%;">
  <p style="margin:4.8pt 0in .0001pt;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">4B(4)</font></p>
  </td>
  <td width="71%" colspan="2" valign="top" style="padding:0in 0in 0in 0in;width:71.92%;">
  <p style="margin:4.8pt 0in .0001pt;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">Performance; No Default</font></p>
  </td>
  <td width="4%" valign="top" style="padding:0in 0in 0in 0in;width:4.32%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">9</font></p>
  </td>
  <td width="1%" valign="top" style="padding:0in 0in 0in 0in;width:1.5%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="3" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
 </tr>
</table>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">i<a name="PB_i_120000_7056"></a></font></p>

<div style="margin:0in 0in .0001pt;"><hr size="3" width="100%" noshade color="#010101" align="left"></div>

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<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><b><u><font size="3" face="Times New Roman" style="font-size:12.0pt;font-weight:bold;text-transform:uppercase;">Table of Contents</font></u></b></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">(continued)</font></p>

<p style="margin:0in 0in .0001pt;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">&nbsp;</font></p>

<table border="0" cellspacing="0" cellpadding="0" width="100%" style="border-collapse:collapse;width:100.0%;">
 <tr>
  <td width="6%" valign="top" style="padding:0in 0in 0in 0in;width:6.84%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="87%" colspan="3" valign="top" style="padding:0in 0in 0in 0in;width:87.08%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="6%" colspan="2" valign="top" style="padding:0in 0in 0in 0in;width:6.08%;">
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><u><font size="2" face="Times New Roman" style="font-size:11.0pt;">Page</font></u></p>
  </td>
 </tr>
 <tr>
  <td width="6%" valign="top" style="padding:0in 0in 0in 0in;width:6.84%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="87%" colspan="3" valign="top" style="padding:0in 0in 0in 0in;width:87.08%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="6%" colspan="2" valign="top" style="padding:0in 0in 0in 0in;width:6.08%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="6%" valign="top" style="padding:0in 0in 0in 0in;width:6.84%;">
  <p style="margin:0in 0in 4.8pt;"><font size="3" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="7%" valign="top" style="padding:0in 0in 0in 0in;width:7.32%;">
  <p style="margin:0in 0in 4.8pt;"><font size="3" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="8%" valign="top" style="padding:0in 0in 0in 0in;width:8.1%;">
  <p style="margin:0in 0in 4.8pt;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">4B(5)</font></p>
  </td>
  <td width="71%" valign="top" style="padding:0in 0in 0in 0in;width:71.66%;">
  <p style="margin:0in 0in 4.8pt;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">Changes in Structure</font></p>
  </td>
  <td width="4%" valign="top" style="padding:0in 0in 0in 0in;width:4.4%;">
  <p align="right" style="margin:0in 0in 4.8pt;text-align:right;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">9</font></p>
  </td>
  <td width="1%" valign="top" style="padding:0in 0in 0in 0in;width:1.66%;">
  <p align="right" style="margin:0in 0in 4.8pt;text-align:right;"><font size="3" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="6%" valign="top" style="padding:0in 0in 0in 0in;width:6.84%;">
  <p style="margin:4.8pt 0in .0001pt;"><font size="3" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="7%" valign="top" style="padding:0in 0in 0in 0in;width:7.32%;">
  <p style="margin:4.8pt 0in .0001pt;"><font size="3" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="8%" valign="top" style="padding:0in 0in 0in 0in;width:8.1%;">
  <p style="margin:4.8pt 0in .0001pt;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">4B(6)</font></p>
  </td>
  <td width="71%" valign="top" style="padding:0in 0in 0in 0in;width:71.66%;">
  <p style="margin:4.8pt 0in .0001pt;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">Purchase Permitted By Applicable Law, etc.</font></p>
  </td>
  <td width="4%" valign="top" style="padding:0in 0in 0in 0in;width:4.4%;">
  <p align="right" style="margin:4.8pt 0in .0001pt;text-align:right;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">9</font></p>
  </td>
  <td width="1%" valign="top" style="padding:0in 0in 0in 0in;width:1.66%;">
  <p align="right" style="margin:4.8pt 0in .0001pt;text-align:right;"><font size="3" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="6%" valign="top" style="padding:0in 0in 0in 0in;width:6.84%;">
  <p style="margin:4.8pt 0in .0001pt;"><font size="3" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="7%" valign="top" style="padding:0in 0in 0in 0in;width:7.32%;">
  <p style="margin:4.8pt 0in .0001pt;"><font size="3" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="8%" valign="top" style="padding:0in 0in 0in 0in;width:8.1%;">
  <p style="margin:4.8pt 0in .0001pt;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">4B(7)</font></p>
  </td>
  <td width="71%" valign="top" style="padding:0in 0in 0in 0in;width:71.66%;">
  <p style="margin:4.8pt 0in .0001pt;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">Private Placement Number</font></p>
  </td>
  <td width="4%" valign="top" style="padding:0in 0in 0in 0in;width:4.4%;">
  <p align="right" style="margin:4.8pt 0in .0001pt;text-align:right;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">9</font></p>
  </td>
  <td width="1%" valign="top" style="padding:0in 0in 0in 0in;width:1.66%;">
  <p align="right" style="margin:4.8pt 0in .0001pt;text-align:right;"><font size="3" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="6%" valign="top" style="padding:0in 0in 0in 0in;width:6.84%;">
  <p style="margin:4.8pt 0in .0001pt;"><font size="3" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="7%" valign="top" style="padding:0in 0in 0in 0in;width:7.32%;">
  <p style="margin:4.8pt 0in .0001pt;"><font size="3" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="8%" valign="top" style="padding:0in 0in 0in 0in;width:8.1%;">
  <p style="margin:4.8pt 0in .0001pt;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">4B(8)</font></p>
  </td>
  <td width="71%" valign="top" style="padding:0in 0in 0in 0in;width:71.66%;">
  <p style="margin:4.8pt 0in .0001pt;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">Proceedings and Documents</font></p>
  </td>
  <td width="4%" valign="top" style="padding:0in 0in 0in 0in;width:4.4%;">
  <p align="right" style="margin:4.8pt 0in .0001pt;text-align:right;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">9</font></p>
  </td>
  <td width="1%" valign="top" style="padding:0in 0in 0in 0in;width:1.66%;">
  <p align="right" style="margin:4.8pt 0in .0001pt;text-align:right;"><font size="3" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="6%" valign="top" style="padding:0in 0in 0in 0in;width:6.84%;">
  <p style="margin:4.8pt 0in .0001pt;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">5</font></p>
  </td>
  <td width="87%" colspan="3" valign="top" style="padding:0in 0in 0in 0in;width:87.08%;">
  <p style="margin:4.8pt 0in .0001pt;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">Representation and Warranties of the Company</font></p>
  </td>
  <td width="4%" valign="top" style="padding:0in 0in 0in 0in;width:4.4%;">
  <p align="right" style="margin:4.8pt 0in .0001pt;text-align:right;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">9</font></p>
  </td>
  <td width="1%" valign="top" style="padding:0in 0in 0in 0in;width:1.66%;">
  <p align="right" style="margin:4.8pt 0in .0001pt;text-align:right;"><font size="3" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="6%" valign="top" style="padding:0in 0in 0in 0in;width:6.84%;">
  <p style="margin:4.8pt 0in .0001pt;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">6</font></p>
  </td>
  <td width="87%" colspan="3" valign="top" style="padding:0in 0in 0in 0in;width:87.08%;">
  <p style="margin:4.8pt 0in .0001pt;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">Representations of the Purchasers</font></p>
  </td>
  <td width="4%" valign="top" style="padding:0in 0in 0in 0in;width:4.4%;">
  <p align="right" style="margin:4.8pt 0in .0001pt;text-align:right;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">19</font></p>
  </td>
  <td width="1%" valign="top" style="padding:0in 0in 0in 0in;width:1.66%;">
  <p align="right" style="margin:4.8pt 0in .0001pt;text-align:right;"><font size="3" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="6%" valign="top" style="padding:0in 0in 0in 0in;width:6.84%;">
  <p style="margin:4.8pt 0in .0001pt;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">7</font></p>
  </td>
  <td width="87%" colspan="3" valign="top" style="padding:0in 0in 0in 0in;width:87.08%;">
  <p style="margin:4.8pt 0in .0001pt;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">Information as to the Company</font></p>
  </td>
  <td width="4%" valign="top" style="padding:0in 0in 0in 0in;width:4.4%;">
  <p align="right" style="margin:4.8pt 0in .0001pt;text-align:right;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">21</font></p>
  </td>
  <td width="1%" valign="top" style="padding:0in 0in 0in 0in;width:1.66%;">
  <p align="right" style="margin:4.8pt 0in .0001pt;text-align:right;"><font size="3" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="6%" valign="top" style="padding:0in 0in 0in 0in;width:6.84%;">
  <p style="margin:4.8pt 0in .0001pt;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">8</font></p>
  </td>
  <td width="87%" colspan="3" valign="top" style="padding:0in 0in 0in 0in;width:87.08%;">
  <p style="margin:4.8pt 0in .0001pt;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">Prepayment of the Notes</font></p>
  </td>
  <td width="4%" valign="top" style="padding:0in 0in 0in 0in;width:4.4%;">
  <p align="right" style="margin:4.8pt 0in .0001pt;text-align:right;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">25</font></p>
  </td>
  <td width="1%" valign="top" style="padding:0in 0in 0in 0in;width:1.66%;">
  <p align="right" style="margin:4.8pt 0in .0001pt;text-align:right;"><font size="3" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="6%" valign="top" style="padding:0in 0in 0in 0in;width:6.84%;">
  <p style="margin:4.8pt 0in .0001pt;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">9</font></p>
  </td>
  <td width="87%" colspan="3" valign="top" style="padding:0in 0in 0in 0in;width:87.08%;">
  <p style="margin:4.8pt 0in .0001pt;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">Affirmative Covenants</font></p>
  </td>
  <td width="4%" valign="top" style="padding:0in 0in 0in 0in;width:4.4%;">
  <p align="right" style="margin:4.8pt 0in .0001pt;text-align:right;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">28</font></p>
  </td>
  <td width="1%" valign="top" style="padding:0in 0in 0in 0in;width:1.66%;">
  <p align="right" style="margin:4.8pt 0in .0001pt;text-align:right;"><font size="3" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="6%" valign="top" style="padding:0in 0in 0in 0in;width:6.84%;">
  <p style="margin:4.8pt 0in .0001pt;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">10</font></p>
  </td>
  <td width="87%" colspan="3" valign="top" style="padding:0in 0in 0in 0in;width:87.08%;">
  <p style="margin:4.8pt 0in .0001pt;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">Negative Covenants</font></p>
  </td>
  <td width="4%" valign="top" style="padding:0in 0in 0in 0in;width:4.4%;">
  <p align="right" style="margin:4.8pt 0in .0001pt;text-align:right;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">30</font></p>
  </td>
  <td width="1%" valign="top" style="padding:0in 0in 0in 0in;width:1.66%;">
  <p align="right" style="margin:4.8pt 0in .0001pt;text-align:right;"><font size="3" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="6%" valign="top" style="padding:0in 0in 0in 0in;width:6.84%;">
  <p style="margin:4.8pt 0in .0001pt;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">11</font></p>
  </td>
  <td width="87%" colspan="3" valign="top" style="padding:0in 0in 0in 0in;width:87.08%;">
  <p style="margin:4.8pt 0in .0001pt;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">Events Of Default</font></p>
  </td>
  <td width="4%" valign="top" style="padding:0in 0in 0in 0in;width:4.4%;">
  <p align="right" style="margin:4.8pt 0in .0001pt;text-align:right;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">37</font></p>
  </td>
  <td width="1%" valign="top" style="padding:0in 0in 0in 0in;width:1.66%;">
  <p align="right" style="margin:4.8pt 0in .0001pt;text-align:right;"><font size="3" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="6%" valign="top" style="padding:0in 0in 0in 0in;width:6.84%;">
  <p style="margin:4.8pt 0in .0001pt;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">12</font></p>
  </td>
  <td width="87%" colspan="3" valign="top" style="padding:0in 0in 0in 0in;width:87.08%;">
  <p style="margin:4.8pt 0in .0001pt;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">Remedies On Default, Etc.</font></p>
  </td>
  <td width="4%" valign="top" style="padding:0in 0in 0in 0in;width:4.4%;">
  <p align="right" style="margin:4.8pt 0in .0001pt;text-align:right;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">39</font></p>
  </td>
  <td width="1%" valign="top" style="padding:0in 0in 0in 0in;width:1.66%;">
  <p align="right" style="margin:4.8pt 0in .0001pt;text-align:right;"><font size="3" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="6%" valign="top" style="padding:0in 0in 0in 0in;width:6.84%;">
  <p style="margin:4.8pt 0in .0001pt;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">13</font></p>
  </td>
  <td width="87%" colspan="3" valign="top" style="padding:0in 0in 0in 0in;width:87.08%;">
  <p style="margin:4.8pt 0in .0001pt;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">Registration; Exchange; Substitution Of Notes</font></p>
  </td>
  <td width="4%" valign="top" style="padding:0in 0in 0in 0in;width:4.4%;">
  <p align="right" style="margin:4.8pt 0in .0001pt;text-align:right;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">41</font></p>
  </td>
  <td width="1%" valign="top" style="padding:0in 0in 0in 0in;width:1.66%;">
  <p align="right" style="margin:4.8pt 0in .0001pt;text-align:right;"><font size="3" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="6%" valign="top" style="padding:0in 0in 0in 0in;width:6.84%;">
  <p style="margin:4.8pt 0in .0001pt;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">14</font></p>
  </td>
  <td width="87%" colspan="3" valign="top" style="padding:0in 0in 0in 0in;width:87.08%;">
  <p style="margin:4.8pt 0in .0001pt;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">Payments On Notes</font></p>
  </td>
  <td width="4%" valign="top" style="padding:0in 0in 0in 0in;width:4.4%;">
  <p align="right" style="margin:4.8pt 0in .0001pt;text-align:right;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">42</font></p>
  </td>
  <td width="1%" valign="top" style="padding:0in 0in 0in 0in;width:1.66%;">
  <p align="right" style="margin:4.8pt 0in .0001pt;text-align:right;"><font size="3" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="6%" valign="top" style="padding:0in 0in 0in 0in;width:6.84%;">
  <p style="margin:4.8pt 0in .0001pt;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">15</font></p>
  </td>
  <td width="87%" colspan="3" valign="top" style="padding:0in 0in 0in 0in;width:87.08%;">
  <p style="margin:4.8pt 0in .0001pt;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">Expenses, Etc.</font></p>
  </td>
  <td width="4%" valign="top" style="padding:0in 0in 0in 0in;width:4.4%;">
  <p align="right" style="margin:4.8pt 0in .0001pt;text-align:right;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">43</font></p>
  </td>
  <td width="1%" valign="top" style="padding:0in 0in 0in 0in;width:1.66%;">
  <p align="right" style="margin:4.8pt 0in .0001pt;text-align:right;"><font size="3" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="6%" valign="top" style="padding:0in 0in 0in 0in;width:6.84%;">
  <p style="margin:4.8pt 0in .0001pt;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">16</font></p>
  </td>
  <td width="87%" colspan="3" valign="top" style="padding:0in 0in 0in 0in;width:87.08%;">
  <p style="margin:4.8pt 0in .0001pt;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">Survival Of Representations And Warranties; Entire
  Agreement</font></p>
  </td>
  <td width="4%" valign="top" style="padding:0in 0in 0in 0in;width:4.4%;">
  <p align="right" style="margin:4.8pt 0in .0001pt;text-align:right;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">43</font></p>
  </td>
  <td width="1%" valign="top" style="padding:0in 0in 0in 0in;width:1.66%;">
  <p align="right" style="margin:4.8pt 0in .0001pt;text-align:right;"><font size="3" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="6%" valign="top" style="padding:0in 0in 0in 0in;width:6.84%;">
  <p style="margin:4.8pt 0in .0001pt;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">17</font></p>
  </td>
  <td width="87%" colspan="3" valign="top" style="padding:0in 0in 0in 0in;width:87.08%;">
  <p style="margin:4.8pt 0in .0001pt;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">Amendment And Waiver</font></p>
  </td>
  <td width="4%" valign="top" style="padding:0in 0in 0in 0in;width:4.4%;">
  <p align="right" style="margin:4.8pt 0in .0001pt;text-align:right;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">44</font></p>
  </td>
  <td width="1%" valign="top" style="padding:0in 0in 0in 0in;width:1.66%;">
  <p align="right" style="margin:4.8pt 0in .0001pt;text-align:right;"><font size="3" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="6%" valign="top" style="padding:0in 0in 0in 0in;width:6.84%;">
  <p style="margin:4.8pt 0in .0001pt;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">18</font></p>
  </td>
  <td width="87%" colspan="3" valign="top" style="padding:0in 0in 0in 0in;width:87.08%;">
  <p style="margin:4.8pt 0in .0001pt;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">Notices</font></p>
  </td>
  <td width="4%" valign="top" style="padding:0in 0in 0in 0in;width:4.4%;">
  <p align="right" style="margin:4.8pt 0in .0001pt;text-align:right;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">45</font></p>
  </td>
  <td width="1%" valign="top" style="padding:0in 0in 0in 0in;width:1.66%;">
  <p align="right" style="margin:4.8pt 0in .0001pt;text-align:right;"><font size="3" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="6%" valign="top" style="padding:0in 0in 0in 0in;width:6.84%;">
  <p style="margin:4.8pt 0in .0001pt;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">19</font></p>
  </td>
  <td width="87%" colspan="3" valign="top" style="padding:0in 0in 0in 0in;width:87.08%;">
  <p style="margin:4.8pt 0in .0001pt;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">Reproduction Of Documents</font></p>
  </td>
  <td width="4%" valign="top" style="padding:0in 0in 0in 0in;width:4.4%;">
  <p align="right" style="margin:4.8pt 0in .0001pt;text-align:right;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">46</font></p>
  </td>
  <td width="1%" valign="top" style="padding:0in 0in 0in 0in;width:1.66%;">
  <p align="right" style="margin:4.8pt 0in .0001pt;text-align:right;"><font size="3" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="6%" valign="top" style="padding:0in 0in 0in 0in;width:6.84%;">
  <p style="margin:4.8pt 0in .0001pt;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">20</font></p>
  </td>
  <td width="87%" colspan="3" valign="top" style="padding:0in 0in 0in 0in;width:87.08%;">
  <p style="margin:4.8pt 0in .0001pt;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">Multiparty Guaranty</font></p>
  </td>
  <td width="4%" valign="top" style="padding:0in 0in 0in 0in;width:4.4%;">
  <p align="right" style="margin:4.8pt 0in .0001pt;text-align:right;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">46</font></p>
  </td>
  <td width="1%" valign="top" style="padding:0in 0in 0in 0in;width:1.66%;">
  <p align="right" style="margin:4.8pt 0in .0001pt;text-align:right;"><font size="3" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="6%" valign="top" style="padding:0in 0in 0in 0in;width:6.84%;">
  <p style="margin:4.8pt 0in .0001pt;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">21</font></p>
  </td>
  <td width="87%" colspan="3" valign="top" style="padding:0in 0in 0in 0in;width:87.08%;">
  <p style="margin:4.8pt 0in .0001pt;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">Confidentiality</font></p>
  </td>
  <td width="4%" valign="top" style="padding:0in 0in 0in 0in;width:4.4%;">
  <p align="right" style="margin:4.8pt 0in .0001pt;text-align:right;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">52</font></p>
  </td>
  <td width="1%" valign="top" style="padding:0in 0in 0in 0in;width:1.66%;">
  <p align="right" style="margin:4.8pt 0in .0001pt;text-align:right;"><font size="3" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="6%" valign="top" style="padding:0in 0in 0in 0in;width:6.84%;">
  <p style="margin:4.8pt 0in .0001pt;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">22</font></p>
  </td>
  <td width="87%" colspan="3" valign="top" style="padding:0in 0in 0in 0in;width:87.08%;">
  <p style="margin:4.8pt 0in .0001pt;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">Miscellaneous</font></p>
  </td>
  <td width="4%" valign="top" style="padding:0in 0in 0in 0in;width:4.4%;">
  <p align="right" style="margin:4.8pt 0in .0001pt;text-align:right;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">52</font></p>
  </td>
  <td width="1%" valign="top" style="padding:0in 0in 0in 0in;width:1.66%;">
  <p align="right" style="margin:4.8pt 0in .0001pt;text-align:right;"><font size="3" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
 </tr>
</table>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">ii<a name="PB_ii_120000_5335"></a></font></p>

<div style="margin:0in 0in .0001pt;"><hr size="3" width="100%" noshade color="#010101" align="left"></div>

</div>
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<br clear="all" style="page-break-before:always;">


<div>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">Information Schedule</font></p>

<p style="margin:0in 0in .0001pt;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">&nbsp;</font></p>

<table border="0" cellspacing="0" cellpadding="0" width="100%" style="border-collapse:collapse;width:100.0%;">
 <tr>
  <td width="18%" valign="top" style="padding:0in 0in 0in 0in;width:18.2%;">
  <p style="margin:0in 0in .0001pt;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">Schedule A</font></p>
  </td>
  <td width="5%" valign="top" style="padding:0in 0in 0in 0in;width:5.3%;">
  <p style="margin:0in 0in .0001pt;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">&#151;</font></p>
  </td>
  <td width="76%" valign="top" style="padding:0in 0in 0in 0in;width:76.48%;">
  <p style="margin:0in 0in .0001pt;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">Purchaser Schedule Related to Series A Notes</font></p>
  </td>
 </tr>
 <tr>
  <td width="18%" valign="top" style="padding:0in 0in 0in 0in;width:18.2%;">
  <p style="margin:0in 0in .0001pt;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">Schedule B</font></p>
  </td>
  <td width="5%" valign="top" style="padding:0in 0in 0in 0in;width:5.3%;">
  <p style="margin:0in 0in .0001pt;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">&#151;</font></p>
  </td>
  <td width="76%" valign="top" style="padding:0in 0in 0in 0in;width:76.48%;">
  <p style="margin:0in 0in .0001pt;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">Defined Terms</font></p>
  </td>
 </tr>
 <tr>
  <td width="18%" valign="top" style="padding:0in 0in 0in 0in;width:18.2%;">
  <p style="margin:0in 0in .0001pt;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">Schedule 5.4</font></p>
  </td>
  <td width="5%" valign="top" style="padding:0in 0in 0in 0in;width:5.3%;">
  <p style="margin:0in 0in .0001pt;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">&#151;</font></p>
  </td>
  <td width="76%" valign="top" style="padding:0in 0in 0in 0in;width:76.48%;">
  <p style="margin:0in 0in .0001pt;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">Subsidiaries; Affiliates; Directors and Officers;
  Restrictions on Subsidiaries</font></p>
  </td>
 </tr>
 <tr>
  <td width="18%" valign="top" style="padding:0in 0in 0in 0in;width:18.2%;">
  <p style="margin:0in 0in .0001pt;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">Schedule 5.10(b)</font></p>
  </td>
  <td width="5%" valign="top" style="padding:0in 0in 0in 0in;width:5.3%;">
  <p style="margin:0in 0in .0001pt;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">&#151;</font></p>
  </td>
  <td width="76%" valign="top" style="padding:0in 0in 0in 0in;width:76.48%;">
  <p style="margin:0in 0in .0001pt;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">Borrowing Base Properties</font></p>
  </td>
 </tr>
 <tr>
  <td width="18%" valign="top" style="padding:0in 0in 0in 0in;width:18.2%;">
  <p style="margin:0in 0in .0001pt;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">Schedule 5.10(c)</font></p>
  </td>
  <td width="5%" valign="top" style="padding:0in 0in 0in 0in;width:5.3%;">
  <p style="margin:0in 0in .0001pt;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">&#151;</font></p>
  </td>
  <td width="76%" valign="top" style="padding:0in 0in 0in 0in;width:76.48%;">
  <p style="margin:0in 0in .0001pt;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">Significant Leases</font></p>
  </td>
 </tr>
 <tr>
  <td width="18%" valign="top" style="padding:0in 0in 0in 0in;width:18.2%;">
  <p style="margin:0in 0in .0001pt;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">Schedule 5.15</font></p>
  </td>
  <td width="5%" valign="top" style="padding:0in 0in 0in 0in;width:5.3%;">
  <p style="margin:0in 0in .0001pt;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">&#151;</font></p>
  </td>
  <td width="76%" valign="top" style="padding:0in 0in 0in 0in;width:76.48%;">
  <p style="margin:0in 0in .0001pt;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">Existing Indebtedness for Borrowed Money</font></p>
  </td>
 </tr>
 <tr>
  <td width="18%" valign="top" style="padding:0in 0in 0in 0in;width:18.2%;">
  <p style="margin:0in 0in .0001pt;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">Schedule 10.2</font></p>
  </td>
  <td width="5%" valign="top" style="padding:0in 0in 0in 0in;width:5.3%;">
  <p style="margin:0in 0in .0001pt;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">&#151;</font></p>
  </td>
  <td width="76%" valign="top" style="padding:0in 0in 0in 0in;width:76.48%;">
  <p style="margin:0in 0in .0001pt;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">Existing Investments</font></p>
  </td>
 </tr>
 <tr>
  <td width="18%" valign="top" style="padding:0in 0in 0in 0in;width:18.2%;">
  <p style="margin:0in 0in .0001pt;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">&nbsp;</font></p>
  </td>
  <td width="5%" valign="top" style="padding:0in 0in 0in 0in;width:5.3%;">
  <p style="margin:0in 0in .0001pt;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">&nbsp;</font></p>
  </td>
  <td width="76%" valign="top" style="padding:0in 0in 0in 0in;width:76.48%;">
  <p style="margin:0in 0in .0001pt;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="18%" valign="top" style="padding:0in 0in 0in 0in;width:18.2%;">
  <p style="margin:0in 0in .0001pt;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">Exhibit A-1</font></p>
  </td>
  <td width="5%" valign="top" style="padding:0in 0in 0in 0in;width:5.3%;">
  <p style="margin:0in 0in .0001pt;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">&#151;</font></p>
  </td>
  <td width="76%" valign="top" style="padding:0in 0in 0in 0in;width:76.48%;">
  <p style="margin:0in 0in .0001pt;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">Form of 5.26% Series A-1 Senior Notes due July 14,
  2015</font></p>
  </td>
 </tr>
 <tr>
  <td width="18%" valign="top" style="padding:0in 0in 0in 0in;width:18.2%;">
  <p style="margin:0in 0in .0001pt;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">Exhibit A-2</font></p>
  </td>
  <td width="5%" valign="top" style="padding:0in 0in 0in 0in;width:5.3%;">
  <p style="margin:0in 0in .0001pt;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">&#151;</font></p>
  </td>
  <td width="76%" valign="top" style="padding:0in 0in 0in 0in;width:76.48%;">
  <p style="margin:0in 0in .0001pt;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">Form of 5.74% Series A-2 Senior Notes due January
  14, 2019</font></p>
  </td>
 </tr>
 <tr>
  <td width="18%" valign="top" style="padding:0in 0in 0in 0in;width:18.2%;">
  <p style="margin:0in 0in .0001pt;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">Exhibit A-3</font></p>
  </td>
  <td width="5%" valign="top" style="padding:0in 0in 0in 0in;width:5.3%;">
  <p style="margin:0in 0in .0001pt;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">&#151;</font></p>
  </td>
  <td width="76%" valign="top" style="padding:0in 0in 0in 0in;width:76.48%;">
  <p style="margin:0in 0in .0001pt;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">Form of Shelf Note</font></p>
  </td>
 </tr>
 <tr>
  <td width="18%" valign="top" style="padding:0in 0in 0in 0in;width:18.2%;">
  <p style="margin:0in 0in .0001pt;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">Exhibit B</font></p>
  </td>
  <td width="5%" valign="top" style="padding:0in 0in 0in 0in;width:5.3%;">
  <p style="margin:0in 0in .0001pt;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">&#151;</font></p>
  </td>
  <td width="76%" valign="top" style="padding:0in 0in 0in 0in;width:76.48%;">
  <p style="margin:0in 0in .0001pt;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">Form of Request for Purchase</font></p>
  </td>
 </tr>
 <tr>
  <td width="18%" valign="top" style="padding:0in 0in 0in 0in;width:18.2%;">
  <p style="margin:0in 0in .0001pt;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">Exhibit C</font></p>
  </td>
  <td width="5%" valign="top" style="padding:0in 0in 0in 0in;width:5.3%;">
  <p style="margin:0in 0in .0001pt;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">&#151;</font></p>
  </td>
  <td width="76%" valign="top" style="padding:0in 0in 0in 0in;width:76.48%;">
  <p style="margin:0in 0in .0001pt;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">Form of Confirmation of Acceptance</font></p>
  </td>
 </tr>
 <tr>
  <td width="18%" valign="top" style="padding:0in 0in 0in 0in;width:18.2%;">
  <p style="margin:0in 0in .0001pt;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">Exhibit D-1</font></p>
  </td>
  <td width="5%" valign="top" style="padding:0in 0in 0in 0in;width:5.3%;">
  <p style="margin:0in 0in .0001pt;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">&#151;</font></p>
  </td>
  <td width="76%" valign="top" style="padding:0in 0in 0in 0in;width:76.48%;">
  <p style="margin:0in 0in .0001pt;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">Form of Series A Note Opinion of Special Counsel for
  the Credit Parties</font></p>
  </td>
 </tr>
 <tr>
  <td width="18%" valign="top" style="padding:0in 0in 0in 0in;width:18.2%;">
  <p style="margin:0in 0in .0001pt;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">Exhibit D-2</font></p>
  </td>
  <td width="5%" valign="top" style="padding:0in 0in 0in 0in;width:5.3%;">
  <p style="margin:0in 0in .0001pt;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">&#151;</font></p>
  </td>
  <td width="76%" valign="top" style="padding:0in 0in 0in 0in;width:76.48%;">
  <p style="margin:0in 0in .0001pt;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">Form of Shelf Note Opinion of Special Counsel for
  the Credit Parties</font></p>
  </td>
 </tr>
 <tr>
  <td width="18%" valign="top" style="padding:0in 0in 0in 0in;width:18.2%;">
  <p style="margin:0in 0in .0001pt;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">Exhibit D-3</font></p>
  </td>
  <td width="5%" valign="top" style="padding:0in 0in 0in 0in;width:5.3%;">
  <p style="margin:0in 0in .0001pt;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">&#151;</font></p>
  </td>
  <td width="76%" valign="top" style="padding:0in 0in 0in 0in;width:76.48%;">
  <p style="margin:0in 0in .0001pt;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">Form of Series A Note Opinion of Special Maryland
  Counsel for the Credit Parties</font></p>
  </td>
 </tr>
 <tr>
  <td width="18%" valign="top" style="padding:0in 0in 0in 0in;width:18.2%;">
  <p style="margin:0in 0in .0001pt;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">Exhibit D-4</font></p>
  </td>
  <td width="5%" valign="top" style="padding:0in 0in 0in 0in;width:5.3%;">
  <p style="margin:0in 0in .0001pt;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">&#151;</font></p>
  </td>
  <td width="76%" valign="top" style="padding:0in 0in 0in 0in;width:76.48%;">
  <p style="margin:0in 0in .0001pt;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">Form of Shelf Note Opinion of Special Maryland
  Counsel for the Credit Parties</font></p>
  </td>
 </tr>
 <tr>
  <td width="18%" valign="top" style="padding:0in 0in 0in 0in;width:18.2%;">
  <p style="margin:0in 0in .0001pt;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">Exhibit D-5</font></p>
  </td>
  <td width="5%" valign="top" style="padding:0in 0in 0in 0in;width:5.3%;">
  <p style="margin:0in 0in .0001pt;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">&#151;</font></p>
  </td>
  <td width="76%" valign="top" style="padding:0in 0in 0in 0in;width:76.48%;">
  <p style="margin:0in 0in .0001pt;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">Form of Series A Note Opinion of Special Texas
  Counsel for the Credit Parties</font></p>
  </td>
 </tr>
 <tr>
  <td width="18%" valign="top" style="padding:0in 0in 0in 0in;width:18.2%;">
  <p style="margin:0in 0in .0001pt;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">Exhibit D-6</font></p>
  </td>
  <td width="5%" valign="top" style="padding:0in 0in 0in 0in;width:5.3%;">
  <p style="margin:0in 0in .0001pt;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">&#151;</font></p>
  </td>
  <td width="76%" valign="top" style="padding:0in 0in 0in 0in;width:76.48%;">
  <p style="margin:0in 0in .0001pt;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">Form of Shelf Note Opinion of Special Texas Counsel
  for the Credit Parties</font></p>
  </td>
 </tr>
 <tr>
  <td width="18%" valign="top" style="padding:0in 0in 0in 0in;width:18.2%;">
  <p style="margin:0in 0in .0001pt;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">Exhibit D-7</font></p>
  </td>
  <td width="5%" valign="top" style="padding:0in 0in 0in 0in;width:5.3%;">
  <p style="margin:0in 0in .0001pt;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">&#151;</font></p>
  </td>
  <td width="76%" valign="top" style="padding:0in 0in 0in 0in;width:76.48%;">
  <p style="margin:0in 0in .0001pt;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">Form of Series A Note Opinion of Special Nevada
  Counsel for the Credit Parties</font></p>
  </td>
 </tr>
 <tr>
  <td width="18%" valign="top" style="padding:0in 0in 0in 0in;width:18.2%;">
  <p style="margin:0in 0in .0001pt;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">Exhibit D-8</font></p>
  </td>
  <td width="5%" valign="top" style="padding:0in 0in 0in 0in;width:5.3%;">
  <p style="margin:0in 0in .0001pt;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">&#151;</font></p>
  </td>
  <td width="76%" valign="top" style="padding:0in 0in 0in 0in;width:76.48%;">
  <p style="margin:0in 0in .0001pt;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">Form of Shelf Note Opinion of Special Nevada Counsel
  for the Credit Parties</font></p>
  </td>
 </tr>
 <tr>
  <td width="18%" valign="top" style="padding:0in 0in 0in 0in;width:18.2%;">
  <p style="margin:0in 0in .0001pt;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">Exhibit E</font></p>
  </td>
  <td width="5%" valign="top" style="padding:0in 0in 0in 0in;width:5.3%;">
  <p style="margin:0in 0in .0001pt;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">&#151;</font></p>
  </td>
  <td width="76%" valign="top" style="padding:0in 0in 0in 0in;width:76.48%;">
  <p style="margin:0in 0in .0001pt;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">Form of Borrowing Base Certificate</font></p>
  </td>
 </tr>
 <tr>
  <td width="18%" valign="top" style="padding:0in 0in 0in 0in;width:18.2%;">
  <p style="margin:0in 0in .0001pt;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">Exhibit F</font></p>
  </td>
  <td width="5%" valign="top" style="padding:0in 0in 0in 0in;width:5.3%;">
  <p style="margin:0in 0in .0001pt;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">&#151;</font></p>
  </td>
  <td width="76%" valign="top" style="padding:0in 0in 0in 0in;width:76.48%;">
  <p style="margin:0in 0in .0001pt;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">Form of Joinder to Multiparty Guaranty</font></p>
  </td>
 </tr>
</table>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">i<a name="PB_i_120000_5796"></a></font></p>

<div style="margin:0in 0in .0001pt;"><hr size="3" width="100%" noshade color="#010101" align="left"></div>

</div>
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<div style="font-family:Times New Roman;">

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><b><font size="3" face="Times New Roman" style="font-size:12.0pt;font-weight:bold;">LTC
PROPERTIES, INC.</font></b></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><b><font size="3" face="Times New Roman" style="font-size:12.0pt;font-weight:bold;">31365
Oak Crest Drive, Suite 200</font></b></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><b><font size="3" face="Times New Roman" style="font-size:12.0pt;font-weight:bold;">Westlake
Village, California 91361</font></b></p>

<p style="margin:0in 0in .0001pt;text-align:justify;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">July 14, 2010</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">Prudential Investment
Management, Inc.</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">Each Prudential Affiliate
(as hereinafter defined) which is</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">&#160; a signatory of this Agreement or becomes
bound by certain</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">&#160; provisions of this Agreement as hereinafter
provided)</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">c/o Prudential Capital
Group</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">2029 Century Park East,
Suite 710</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">Los Angeles, California
90067</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">Ladies and Gentlemen:</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">Each
of the undersigned, LTC Properties, Inc., a Maryland corporation (the &#147;<b>Company</b>&#148;), and certain direct and indirect
Subsidiaries of the Company from time to time party to this Agreement as
Guarantors agrees with each of the Purchasers as follows:</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="font-size:12.0pt;font-weight:bold;margin:0in 0in .0001pt .5in;page-break-after:avoid;text-align:justify;text-indent:-.5in;"><b><font size="3" face="Times New Roman" style="font-size:12.0pt;">1</font></b><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>AUTHORIZATION
OF NOTES</p>

<p style="font-weight:bold;margin:0in 0in .0001pt .5in;page-break-after:avoid;text-align:justify;text-indent:-.5in;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></b></p>

<p style="font-size:12.0pt;font-weight:bold;margin:0in 0in .0001pt .5in;page-break-after:avoid;text-align:justify;text-indent:0in;"><b><font size="3" face="Times New Roman" style="font-size:12.0pt;">1A&#160;&#160;&#160;&#160;&#160;&#160; </font>AUTHORIZATION
OF SERIES A-1 NOTES.</b></p>

<p style="font-weight:bold;margin:0in 0in .0001pt .5in;page-break-after:avoid;text-align:justify;text-indent:0in;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></b></p>

<p style="margin:0in 0in .0001pt;text-align:justify;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">The
Company has authorized the issue and sale of $25,000,000 aggregate principal
amount of its 5.26% Series A-1 Senior Notes due July 14, 2015 (as amended,
restated, supplemented or otherwise modified from time to time, the &#147;<b>Series A-1 Notes</b>&#148;, such term to include any
such notes issued in substitution therefor pursuant to Section 13).&#160; The Series A-1 Notes shall be substantially
in the form set out in <u>Exhibit A-1</u>.&#160;
Certain capitalized and other terms used in this Agreement are defined
in <u>Schedule B</u>; and references to a &#147;Schedule&#148; or an &#147;Exhibit&#148; are,
unless otherwise specified, to a Schedule or an Exhibit attached to this
Agreement.</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="font-size:12.0pt;font-weight:bold;margin:0in 0in .0001pt .5in;page-break-after:avoid;text-align:justify;text-indent:0in;"><b><font size="3" face="Times New Roman" style="font-size:12.0pt;">1B&#160;&#160;&#160;&#160;&#160;&#160; </font>AUTHORIZATION
OF SERIES A-2 NOTES.</b></p>

<p style="font-weight:bold;margin:0in 0in .0001pt .5in;page-break-after:avoid;text-align:justify;text-indent:0in;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></b></p>

<p style="margin:0in 0in .0001pt;text-align:justify;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">The
Company has authorized the issue and sale of $25,000,000 aggregate principal
amount of its 5.74% Series A-2 Senior Notes due January 14, 2019 (as amended,
restated, supplemented or otherwise modified from time to time, the &#147;<b>Series A-2 Notes</b>&#148;, such term to include any
such notes issued in substitution therefor pursuant to Section 13).&#160; The Series A-2 Notes shall be substantially
in the form set out in <u>Exhibit A-2</u>.&#160;
The terms &#147;<b>Series A Note</b>&#148;
and &#147;<b>Series A Notes</b>&#148; as used
herein shall include each Series A-1 Note and each Series A-2 Note delivered
pursuant to any provision of this Agreement and each Note delivered in
substitution or exchange for any such Note pursuant to any such provision.</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<div style="margin:0in 0in .0001pt;"><hr size="3" width="100%" noshade color="#010101" align="left"></div>

</div>
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<div style="font-family:Times New Roman;">

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="font-size:12.0pt;font-weight:bold;margin:0in 0in .0001pt .5in;page-break-after:avoid;text-align:justify;text-indent:0in;"><b><font size="3" face="Times New Roman" style="font-size:12.0pt;">1C&#160;&#160;&#160;&#160;&#160;&#160; </font>AUTHORIZATION
OF ISSUE OF SHELF NOTES.</b></p>

<p style="font-weight:bold;margin:0in 0in .0001pt .5in;page-break-after:avoid;text-align:justify;text-indent:0in;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></b></p>

<p style="margin:0in 0in .0001pt;text-align:justify;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">The
Company will authorize the issue and sale of its additional senior notes (as
amended, restated, supplemented or otherwise modified from time to time, the &#147;<b>Shelf Notes</b>&#148;) in the aggregate principal
amount of up to $50,000,000, to be dated the date of issue thereof, to mature,
in the case of each Shelf Note so issued, no more than 10 years after the date
of original issuance thereof, to have an average life, in the case of each
Shelf Note so issued, of no more than 7 years after the date of original
issuance thereof, to bear interest on the unpaid balance thereof from the date
thereof at the rate per annum, and to have such other particular terms, as
shall be set forth, in the case of each Shelf Note so issued, in the
Confirmation of Acceptance with respect to such Shelf Note delivered pursuant
to Section 2B(5), and to be substantially in the form of <u>Exhibit A-3</u>.&#160; The terms &#147;<b>Shelf
Note</b>&#148; and &#147;<b>Shelf Notes</b>&#148;
as used herein shall include each Shelf Note delivered pursuant to any
provision of this Agreement and each Shelf Note delivered in substitution or
exchange for any such Shelf Note pursuant to any such provision.&#160; The terms &#147;<b>Note</b>&#148;
and &#147;<b>Notes</b>&#148; as used herein shall
include each Series A Note and each Shelf Note delivered pursuant to any
provision of this Agreement and each Note delivered in substitution or exchange
for any such Note pursuant to any such provision.&#160; Notes that have (i) the same final maturity,
(ii) the same principal prepayment dates, (iii) the same principal prepayment
amounts (as a percentage of the original principal amount of each Note), (iv)
the same interest rate, (v) the same interest payment periods, and (vi) the
same date of issuance (which, in the case of a Note issued in exchange for
another Note, shall be deemed for these purposes the date on which such Note&#146;s
ultimate predecessor Note was issued), are herein called a &#147;<b>Series</b>&#148; of Notes.</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="font-size:12.0pt;font-weight:bold;margin:0in 0in .0001pt .5in;page-break-after:avoid;text-align:justify;text-indent:-.5in;"><b><font size="3" face="Times New Roman" style="font-size:12.0pt;">2</font></b><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>SALE
AND PURCHASE OF NOTES</p>

<p style="font-weight:bold;margin:0in 0in .0001pt .5in;page-break-after:avoid;text-align:justify;text-indent:-.5in;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></b></p>

<p style="font-size:12.0pt;font-weight:bold;margin:0in 0in .0001pt .5in;page-break-after:avoid;text-align:justify;text-indent:0in;"><b><font size="3" face="Times New Roman" style="font-size:12.0pt;">2A&#160;&#160;&#160;&#160;&#160;&#160; </font>SALE
AND PURCHASE OF SERIES A-1 NOTES AND SERIES A-2 NOTES.</b></p>

<p style="font-weight:bold;margin:0in 0in .0001pt .5in;page-break-after:avoid;text-align:justify;text-indent:0in;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></b></p>

<p style="margin:0in 0in .0001pt;text-align:justify;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">Subject
to the terms and conditions of this Agreement, the Company agrees to issue and
sell to each Series A Purchaser and each Series A Purchaser agrees to purchase
from the Company, on the Series A Closing Day provided for in Section 3, Series
A-1 Notes and/or Series A-2 Notes, as applicable, in the principal amount with
respect to Series A-1 Notes and/or Series A-2 Notes, as applicable, specified
opposite such Series A Purchaser&#146;s name in the Purchaser Schedule Relating to
Series A Notes set forth as <u>Schedule A</u> at the purchase price of 100% of
the principal amount thereof.</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="font-size:12.0pt;font-weight:bold;margin:0in 0in .0001pt .5in;page-break-after:avoid;text-align:justify;text-indent:0in;"><b><font size="3" face="Times New Roman" style="font-size:12.0pt;">2B&#160;&#160;&#160;&#160;&#160;&#160; </font>SALE
AND PURCHASE OF SHELF NOTES.</b></p>

<p style="font-weight:bold;margin:0in 0in .0001pt .5in;page-break-after:avoid;text-align:justify;text-indent:0in;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></b></p>

<p style="font-size:12.0pt;margin:0in 0in .0001pt;text-align:justify;text-indent:.5in;"><b><font size="3" face="Times New Roman"><font style="font-size:12.0pt;font-weight:bold;">2B(1)&#160;&#160; </font>Facility</font></b>.&#160; PIM is
willing to consider, in its sole discretion and within limits that may be
authorized for purchase by PIM and Prudential Affiliates from time to time, the
purchase of Shelf Notes pursuant to this Agreement.&#160; The willingness of PIM to consider such
purchase of Shelf Notes is herein called the &#147;<b>Facility</b>.&#148;&#160; At any time, (i) the aggregate principal
amount of Shelf Notes stated in Section 1C, <u>minus</u> (ii) the aggregate principal amount of Shelf Notes
purchased and sold pursuant to this Agreement prior to such time, <u>minus</u> (iii) the aggregate
principal amount of Accepted Notes (as hereinafter defined) which have not yet
been purchased and sold hereunder prior to such time, is herein called the &#147;<b>Available Facility Amount</b>&#148; at such
time.&#160; <b>NOTWITHSTANDING
THE WILLINGNESS OF PIM TO CONSIDER PURCHASES OF SHELF NOTES, THIS AGREEMENT IS
ENTERED INTO ON THE EXPRESS UNDERSTANDING THAT NEITHER PIM NOR ANY PRUDENTIAL
AFFILIATE SHALL BE OBLIGATED TO MAKE OR ACCEPT OFFERS TO PURCHASE SHELF NOTES,
OR TO QUOTE RATES, SPREADS OR OTHER TERMS WITH RESPECT TO SPECIFIC PURCHASES OF
SHELF NOTES, AND THE FACILITY SHALL IN NO WAY BE CONSTRUED AS A COMMITMENT BY PIM
OR ANY PRUDENTIAL AFFILIATE.</b>&#160; Notwithstanding anything to the
contrary appearing herein, in no event shall any Note be purchased under the
Facility by a Prudential Affiliate described in clause (i) of the definition
thereof if, upon giving effect to such purchase and the use of proceeds
thereof, the aggregate principal amount all Notes and any other notes of the
Company then outstanding and held by all Prudential Affiliates described in
such clause, would exceed $75,000,000.</p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">2<a name="PB_2_120000_2897"></a></font></p>

<div style="margin:0in 0in .0001pt;"><hr size="3" width="100%" noshade color="#010101" align="left"></div>

</div>
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<div style="font-family:Times New Roman;">

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="font-size:12.0pt;margin:0in 0in .0001pt;text-align:justify;text-indent:.5in;"><b><font size="3" face="Times New Roman"><font style="font-size:12.0pt;font-weight:bold;">2B(2)&#160;&#160; </font>Issuance Period.</font></b>&#160; Shelf Notes may be issued and sold pursuant
to this Agreement until the earlier of (i) the third anniversary of the date of
this Agreement (or if such anniversary is not a New York Business Day, the New
York Business Day next preceding such anniversary), and (ii) the thirtieth day
after PIM shall have given to the Company, or the Company shall have given to
PIM, written notice stating that it elects to terminate the issuance and sale
of Shelf Notes pursuant to this Agreement (or if such thirtieth day is not a
New York Business Day, the New York Business Day next preceding such thirtieth
day).&#160; The period during which Shelf
Notes may be issued and sold pursuant to this Agreement is herein called the &#147;<b>Issuance Period</b>.&#148;</p>

<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="font-size:12.0pt;margin:0in 0in .0001pt;text-align:justify;text-indent:.5in;"><b><font size="3" face="Times New Roman"><font style="font-size:12.0pt;font-weight:bold;">2B(3)&#160;&#160; </font>Request For Purchase</font></b>.&#160; The Company may from time to time during the
Issuance Period make requests for purchases of Shelf Notes (each such request
being herein called a &#147;<b>Request for Purchase</b>&#148;).&#160; Each Request for Purchase shall be made to PIM
by email or overnight delivery service, and shall (i) specify the aggregate
principal amount of Shelf Notes covered thereby, which shall not be less than
$10,000,000 and not be greater than the Available Facility Amount at the time
such Request for Purchase is made, (ii) specify the principal amounts, final
maturities (which shall be no more than 10 years from the date of original
issuance), and principal prepayment dates and amounts (which shall result in an
average life of no more than 7 years from the date of original issuance) of the
Shelf Notes covered thereby, (iii) specify the interest payment periods (which
shall be quarterly or semi-annually), (iv) specify the use of proceeds of such
Shelf Notes), (v) specify the proposed day for the closing of the purchase and
sale of such Shelf Notes, which shall be a Business Day during the Issuance
Period not less than 10 Business Days and not more than 42 days after the
making of such Request for Purchase, (vi) specify the number of the account and
the name and address of the depository institution to which the purchase prices
of such Shelf Notes are to be transferred on the Closing Day for such purchase
and sale, (vii) certify that the representations and warranties contained in
Section 5 are true on and as of the date of such Request for Purchase and that
there exists on the date of such Request for Purchase no Event of Default or
Default, and (viii) be substantially in the form of <u>Exhibit B</u> attached
hereto.&#160; Each Request for Purchase shall
be in writing and shall be deemed made when received by PIM.</p>

<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="font-size:12.0pt;margin:0in 0in .0001pt;text-align:justify;text-indent:.5in;"><b><font size="3" face="Times New Roman"><font style="font-size:12.0pt;font-weight:bold;">2B(4)&#160;&#160; </font>Rate Quotes</font></b>.&#160; Not later than 5 Business Days after the
Company shall have given PIM a Request for Purchase pursuant to Section 2B(3),
PIM may, but shall be under no obligation to, provide to the Company by telephone
interest rate quotes for the several principal amounts, maturities and
principal prepayment schedules, and interest payment periods of Shelf Notes
specified in such Request for Purchase.&#160;
Each quote shall represent the interest rate per annum payable on the
outstanding principal balance of such Shelf Notes at which PIM or a Prudential
Affiliate would be willing to purchase such Shelf Notes at 100% of the
principal amount thereof.</p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">3<a name="PB_3_120000_3020"></a></font></p>

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<div style="font-family:Times New Roman;">

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="font-size:12.0pt;margin:0in 0in .0001pt;text-align:justify;text-indent:.5in;"><b><font size="3" face="Times New Roman"><font style="font-size:12.0pt;font-weight:bold;">2B(5)&#160;&#160; </font>Acceptance.</font></b>&#160; Within 2 minutes after PIM shall have
provided any interest rate quotes pursuant to Section 2B(4) or such shorter
period as PIM may specify to the Company (such period herein called the &#147;<b>Acceptance Window</b>&#148;), the Company may,
subject to Section 2B(6), elect to accept such interest rate quotes as to not
less than $10,000,000 aggregate principal amount of the Shelf Notes specified
in the related Request for Purchase.&#160;
Such election shall be made by an Authorized Officer of the Company
notifying PIM by telephone or email within the Acceptance Window (but not
earlier than 9:30 a.m. or later than 1:30 p.m. (or such later time as PIM may
agree), New York City local time) that the Company elects to accept such
interest rate quotes, specifying the Shelf Notes (each such Shelf Note being
herein called an &#147;<b>Accepted Note</b>&#148;)
as to which such acceptance (herein called an &#147;<b>Acceptance</b>&#148;) relates.&#160;
The day the Company notifies PIM of an Acceptance with respect to any
Accepted Notes is herein called the &#147;<b>Acceptance
Day</b>&#148; for such Accepted Notes.&#160;
Any interest rate quotes as to which PIM does not receive an Acceptance
within the Acceptance Window shall expire, and no purchase or sale of Shelf
Notes hereunder shall be made based on such expired interest rate quotes.&#160; Subject to Section 2B(6) and the other terms
and conditions hereof, the Company agrees to sell to PIM or a Prudential
Affiliate, and PIM agrees to purchase, or to cause the purchase by a Prudential
Affiliate of, the Accepted Notes at 100% of the principal amount of such
Accepted Notes.&#160; As soon as practicable
following the Acceptance Day, the Company, PIM and each Prudential Affiliate
which is to purchase any such Accepted Notes will execute a confirmation of
such Acceptance substantially in the form of <u>Exhibit C</u> (herein called a
&#147;<b>Confirmation of Acceptance</b>&#148;).&#160; If the Company should fail to execute and
return to PIM within 2 Business Days following receipt thereof a Confirmation
of Acceptance with respect to any Accepted Notes, PIM may at its election at
any time prior to its receipt thereof cancel the closing with respect to such
Accepted Notes by so notifying the Company in writing.</p>

<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="font-size:12.0pt;margin:0in 0in .0001pt;text-align:justify;text-indent:.5in;"><b><font size="3" face="Times New Roman"><font style="font-size:12.0pt;font-weight:bold;">2B(6)&#160;&#160; </font>Market Disruption.</font></b>&#160; Notwithstanding the provisions of Section
2B(5), if PIM shall have provided interest rate quotes pursuant to Section
2B(4) and thereafter, prior to the time an Acceptance with respect to such
quotes shall have been notified to PIM in accordance with Section 2B(5), the
domestic market for U.S. Treasury securities or derivatives shall have closed
or there shall have occurred a general suspension, material limitation, or
significant disruption of trading in securities generally on the New York Stock
Exchange or in the domestic market for U.S. Treasury securities or derivatives,
then such interest rate quotes shall expire, and no purchase or sale of Shelf
Notes hereunder shall be made based on such expired interest rate quotes.&#160; If the Company thereafter notifies PIM of the
Acceptance of any such interest rate quotes, such Acceptance shall be
ineffective for all purposes of this Agreement, and PIM shall promptly notify
the Company that the provisions of this Section 2B(6) are applicable with
respect to such Acceptance.</p>

<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="font-size:12.0pt;margin:0in 0in .0001pt;text-align:justify;text-indent:.5in;"><b><font size="3" face="Times New Roman"><font style="font-size:12.0pt;font-weight:bold;">2B(7)&#160;&#160; </font>Facility Closings.</font></b>&#160;
Not later than 1:30 p.m. (New York City local time) on the Closing Day
for any Accepted Notes, the Company will deliver to each Purchaser listed in
the Confirmation of Acceptance relating thereto at the offices of the Bingham
McCutchen LLP, Three Embarcadero Center, San Francisco, California 94111 (or
such other address as PIM may specify in writing), the Accepted Notes to be
purchased by such Purchaser in the form of one or more Notes in authorized
denominations as such Purchaser may request for each Series of Accepted Notes
to be purchased on such Closing Day, dated the applicable Closing Day and
registered in such Purchaser&#146;s name (or in the name of its nominee), against
payment of the purchase price thereof by transfer of immediately available
funds for credit to the account </p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">4<a name="PB_4_120000_7748"></a></font></p>

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</div>
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<div style="font-family:Times New Roman;">

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:0in;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">specified in the Request for Purchase of such Notes.&#160; If the Company fails to tender to any
Purchaser the Accepted Notes to be purchased by such Purchaser on the scheduled
Closing Day for such Accepted Notes as provided above in this paragraph 2B(7),
or any of the conditions specified in Section 4 shall not have been fulfilled
by the time required on such scheduled Closing Day, the Company shall, prior to
2:00 p.m., New York City local time, on such scheduled Closing Day notify PIM
(which notification shall be deemed received by each Purchaser) in writing
whether (i) such closing is to be rescheduled (such rescheduled date to be a
Business Day during the Issuance Period not less than one Business Day and not
more than 10 Business Days after such scheduled Closing Day (the &#147;<b>Rescheduled Closing Day</b>&#148;)) and certify to
PIM (which certification shall be for the benefit of each Purchaser) that the
Company reasonably believes that it will be able to comply with the conditions
set forth in Section 4 on such Rescheduled Closing Day and that the Company
will pay the Delayed Delivery Fee in accordance with Section 2B(8)(iii), or
(ii) such closing is to be canceled and the Company will pay the Cancellation
Fee as provided in Section 2B(8)(iv).&#160; In
the event that the Company shall fail to give such notice referred to in the
immediately preceding sentence, PIM (on behalf of each Purchaser) may at its
election, at any time after 2:00 p.m., New York City local time, on such
scheduled Closing Day, notify the Company in writing that such closing is to be
canceled and the Company is obligated to pay the Cancellation Fee as provided
in Section 2B(8)(iv).&#160; Notwithstanding
anything to the contrary appearing in this Agreement, the Company may elect to
reschedule a closing with respect to any given Accepted Notes on not more than
one occasion, unless PIM shall have otherwise consented in writing.</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:.5in;"><b><font size="3" face="Times New Roman" style="font-size:12.0pt;font-weight:bold;">2B(8)&#160;&#160; Fees.</font></b></p>

<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:.5in;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">&nbsp;</font></b></p>

<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:.5in;"><b><font size="3" face="Times New Roman"><font style="font-size:12.0pt;font-weight:bold;">2B(8)(i)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>[Intentionally Omitted.]</font></b></p>

<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:.5in;"><b><font size="3" face="Times New Roman"><font style="font-size:12.0pt;font-weight:bold;">2B(8)(ii)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>[Intentionally Omitted.]</font></b></p>

<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="font-size:12.0pt;margin:0in 0in .0001pt;text-align:justify;text-indent:.5in;"><b><font size="3" face="Times New Roman"><font style="font-size:12.0pt;font-weight:bold;">2B(8)(iii)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>Delayed Delivery Fee.</font></b>&#160; If the closing of the purchase and sale of
any Accepted Note is delayed for any reason beyond the original Closing Day for
such Accepted Note, the Company shall pay to or as directed by PIM, on the
Cancellation Date or actual Closing Day of such purchase and sale, an amount
(the &#147;<b>Delayed Delivery Fee</b>&#148;) equal
to:</p>

<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">(BEY - MMY) X DTS/360 X PA</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">where
&#147;<b>BEY</b>&#148; means Bond Equivalent Yield, <i>i.e.</i>, the bond equivalent yield per annum of such Accepted
Note; &#147;<b>MMY</b>&#148; means Money Market Yield, <i>i.e.</i>, the yield per annum on an alternative Dollar investment
of the highest quality selected by PIM having a maturity date or dates the same
as, or closest to, the Rescheduled Closing Day from time to time fixed for the
delayed delivery of such Accepted Note; &#147;<b>DTS</b>&#148; means Days
to Settlement, <i>i.e.</i>, the number of actual days
elapsed from and including the original Closing Day for such Accepted Note to
but excluding the date of such payment; and &#147;<b>PA</b>&#148;
means Principal Amount, <i>i.e.</i>, the
principal amount of the Accepted Note for which such calculation is being made.</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">In no
case shall the Delayed Delivery Fee be less than zero.&#160; Nothing contained herein shall obligate any
Purchaser to purchase any Accepted Note on any day other than the Closing Day
for such Accepted Note, as the same may be rescheduled from time to time in
compliance with Section 2B(7).</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">5<a name="PB_5_120000_141"></a></font></p>

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<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="font-size:12.0pt;margin:0in 0in .0001pt;text-align:justify;text-indent:.5in;"><b><font size="3" face="Times New Roman"><font style="font-size:12.0pt;font-weight:bold;">2B(8)(iv)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>Cancellation Fee.</font></b>&#160; If the Company at any time notifies PIM in
writing that the Company is canceling the closing of the purchase and sale of
any Accepted Note, or if PIM notifies the Company in writing under the
circumstances set forth in the last sentence of paragraph 2B(5) or the
penultimate sentence of Section 2B(7) that the closing of the purchase and sale
of such Accepted Note is to be canceled, or if the closing of the purchase and
sale of such Accepted Note is not consummated on or prior to the last day of
the Issuance Period (the date of any such notification, or the last day of the
Issuance Period, as the case may be, being herein called the &#147;<b>Cancellation Date</b>&#148;), the Company shall pay
to or as directed by PIM in immediately available funds on the Cancellation
Date an amount (the &#147;<b>Cancellation Fee</b>&#148;)
equal to:</p>

<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">PI X PA</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:0in;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">where &#147;<b>PI</b>&#148; means Price Increase, <i>i.e.</i>, the quotient (expressed in decimals) obtained by dividing
(a) the excess of the ask price (as determined by PIM) of the Hedge Treasury
Note(s) on the Cancellation Date over the bid price (as determined by PIM) of
the Hedge Treasury Note(s) on the Acceptance Day for such Accepted Note by (b)
such bid price; and &#147;<b>PA</b>&#148; has the
meaning ascribed to it in paragraph 2B(8)(iii).&#160;
The foregoing bid and ask prices shall be as reported by such publicly
available source of such market data as is then customarily used by PIM, and
rounded to the second decimal place.</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">In
no case shall the Cancellation Fee be less than zero.</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="font-size:12.0pt;font-weight:bold;margin:0in 0in .0001pt .5in;page-break-after:avoid;text-align:justify;text-indent:-.5in;"><b><font size="3" face="Times New Roman" style="font-size:12.0pt;">3</font></b><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>SERIES
A CLOSING.</p>

<p style="font-weight:bold;margin:0in 0in .0001pt .5in;page-break-after:avoid;text-align:justify;text-indent:-.5in;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></b></p>

<p style="margin:0in 0in .0001pt;text-align:justify;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">The
sale and purchase of the Series A-1 Notes or Series A-2 Notes, as applicable,
to be purchased by the Series A Purchasers shall occur at the offices of
Bingham McCutchen LLP, Three Embarcadero Center, San Francisco, California
94111, at 9:00 a.m., Pacific time, at a single closing on July 14, 2010 (the &#147;<b>Series A Closing Day</b>&#148;).&#160; On the Series A Closing Day, the Company will
deliver to each Series A Purchaser the Series A Notes to be purchased by such
Series A Purchaser in the form of a single Series A-1 Note (or such greater
number of Series A-1 Notes in denominations of at least $1,000,000 as it may
request) and/or a single Series A-2 Note (or such greater number of Series A-2
Notes in denominations of at least $1,000,000 as it may request), as
applicable, each dated the date of the Series A Closing Day, and registered in
such Series A Purchaser&#146;s name (or in the name of its nominee), against
delivery by such Series A Purchaser to the Company or its order of immediately
available funds in the amount of the purchase price therefor by wire transfer
of immediately available funds for the account of the Company to account number
317-4554 at Harris Trust and Savings, Chicago, IL 60694, ABA number
071000288.&#160; If on the Series A Closing
Day the Company shall fail to tender such Notes as provided above in this
Section 3, or any of the conditions specified in Section 4 shall not have been
fulfilled to the satisfaction of any Series A Purchaser, such Series A
Purchaser shall, at its election, be relieved of all further obligations under
this Agreement, without thereby waiving any rights it may have by reason of
such failure or such nonfulfillment.</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">6<a name="PB_6_120000_7608"></a></font></p>

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<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="font-size:12.0pt;font-weight:bold;margin:0in 0in .0001pt .5in;page-break-after:avoid;text-align:justify;text-indent:-.5in;"><b><font size="3" face="Times New Roman" style="font-size:12.0pt;">4</font></b><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>CONDITIONS
TO CLOSING.</p>

<p style="font-weight:bold;margin:0in 0in .0001pt .5in;page-break-after:avoid;text-align:justify;text-indent:-.5in;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></b></p>

<p style="margin:0in 0in .0001pt;text-align:justify;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">The
obligation of any Purchaser to purchase and pay for any Notes is subject to the
fulfillment to its satisfaction, on or before the applicable Closing Day, of
the following conditions:</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="font-size:12.0pt;font-weight:bold;margin:0in 0in .0001pt .5in;page-break-after:avoid;text-align:justify;text-indent:0in;"><b><font size="3" face="Times New Roman" style="font-size:12.0pt;">4A&#160;&#160;&#160;&#160;&#160;&#160; </font>CONDITIONS
TO SERIES A CLOSING</b></p>

<p style="font-weight:bold;margin:0in 0in .0001pt .5in;page-break-after:avoid;text-align:justify;text-indent:0in;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></b></p>

<p style="font-size:12.0pt;margin:0in 0in .0001pt;text-align:justify;text-indent:.5in;"><b><font size="3" face="Times New Roman"><font style="font-size:12.0pt;font-weight:bold;">4A(1)&#160;&#160; </font>Completion of Due Diligence.</font></b>&#160; PIM and the Series A Purchasers shall have
completed to their satisfaction financial and other business, environmental and
legal due diligence related to the Company and its Subsidiaries.</p>

<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="font-size:12.0pt;margin:0in 0in .0001pt;text-align:justify;text-indent:.5in;"><b><font size="3" face="Times New Roman"><font style="font-size:12.0pt;font-weight:bold;">4A(2)&#160;&#160; </font>Delivery of Credit Agreement and
Modifications Thereto.</font></b>&#160;
PIM and the Series A Purchasers shall have received copies of the Credit
Agreement and the definitive agreements with respect to any other Principal
Credit Facilities, and all amendments or other modifications to each of the
foregoing, accompanied by an Officer&#146;s Certificate certifying such copies as
being true, correct and complete copies thereof.</p>

<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="font-size:12.0pt;margin:0in 0in .0001pt;text-align:justify;text-indent:.5in;"><b><font size="3" face="Times New Roman"><font style="font-size:12.0pt;font-weight:bold;">4A(3)&#160;&#160; </font>Consents.</font></b>&#160; PIM and the Series A Purchasers shall have
received evidence satisfactory to them that all government, contractual (including,
without limitation, under the Credit Agreement) and other third-party approvals
and consents, if any, necessary to the consummation of the transactions
contemplated by this Agreement and the other Transaction Documents as of the
Series A Closing Day have been obtained.</p>

<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="font-size:12.0pt;margin:0in 0in .0001pt;text-align:justify;text-indent:.5in;"><b><font size="3" face="Times New Roman" style="font-size:12.0pt;font-weight:bold;">4A(4)&#160;&#160; Borrowing
Base Certificate.</font></b>&#160;
PIM and the Series A Purchasers shall have received a Borrowing Base
Certificate containing a calculation of the Borrowing Base as of March 31, 2010
based on the information set forth on <u>Schedule 5.10(b)</u> as of the Series
A Closing Day.</p>

<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="font-size:12.0pt;margin:0in 0in .0001pt;text-align:justify;text-indent:.5in;"><b><font size="3" face="Times New Roman"><font style="font-size:12.0pt;font-weight:bold;">4A(5)&#160;&#160; </font>Payment of Special Counsel Fees.</font></b>&#160; Without limiting the provisions of Section
15.1, the Company shall have paid on or before the Series A Closing Day the
fees, charges and disbursements of the special counsel of PIM and the Series A
Purchasers referred to in Section 4B(1)(g), to the extent reflected in a
statement of such counsel rendered to the Company at least one Business Day
prior to the Series A Closing Day.</p>

<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="font-size:12.0pt;font-weight:bold;margin:0in 0in .0001pt .5in;page-break-after:avoid;text-align:justify;text-indent:0in;"><b><font size="3" face="Times New Roman" style="font-size:12.0pt;">4B</font></b><font size="1" face="Times New Roman" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>CONDITIONS
TO EACH CLOSING.</p>

<p style="font-weight:bold;margin:0in 0in .0001pt .5in;page-break-after:avoid;text-align:justify;text-indent:0in;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></b></p>

<p style="font-size:12.0pt;margin:0in 0in .0001pt;text-align:justify;text-indent:.5in;"><b><font size="3" face="Times New Roman" style="font-size:12.0pt;font-weight:bold;">4B(1)</font></b><b><font size="1" style="font-size:3.0pt;font-weight:bold;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>Certain Documents.</b>&#160; PIM
and each Purchaser that is purchasing Notes on such Closing Day shall have
received the following, each dated the applicable Closing Day (except as
provided in clause (h)):</p>

<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:1.0in;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">(a)&#160;&#160;&#160;&#160;&#160;&#160;&#160; The Note(s) to be purchased by such
Purchaser;</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:1.0in;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">(b)&#160;&#160;&#160;&#160;&#160;&#160;&#160; an Officer&#146;s Certificate from the
Company, certifying that the conditions specified in Sections 4B(3), 4B(4) and
4B(5) have been fulfilled;</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:1.0in;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">(c)&#160;&#160;&#160;&#160;&#160;&#160;&#160; certified copies of the resolutions of
each Credit Party (or, if such Person is a partnership, its general partner),
authorizing the execution and delivery of the Transaction Documents to which
such Credit Party is a party (and, in the case of such resolutions of the
Company, authorizing the issuance of the applicable Series of Notes by the
Company), and of all documents evidencing other necessary corporate or similar
action and governmental approvals, if any, with respect to the Transaction
Documents and the applicable Series of Notes;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">7<a name="PB_7_120049_7091"></a></font></p>

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<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:1.0in;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">(d)&#160;&#160;&#160;&#160;&#160;&#160;&#160; a certificate of the Secretary or an
Assistant Secretary and one other officer of each of the Credit Parties (or, if
such Person is a partnership, its general partner), certifying the names and
true signatures of the officers of such Person authorized to sign the
Transaction Documents to which such Credit Party is a party;</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:1.0in;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">(e)&#160;&#160;&#160;&#160;&#160;&#160;&#160; certified copies of the articles or
certificate of incorporation (or similar charter document) and by-laws,
operating agreement or partnership agreement, as applicable, of each Credit
Party;</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:1.0in;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">(f)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; favorable opinions of:&#160; (i) Reed Smith LLP, special counsel for the
Credit Parties satisfactory to such Purchaser and substantially in the form of <u>Exhibit
D-1</u> (in the case of the Series A Notes) or <u>Exhibit D-2</u> (in the case
of any Shelf Notes) attached hereto, and as to such other matters as such
Purchaser may reasonably request; (ii) Ballard Spahr LLP, special Maryland
counsel for the Credit Parties satisfactory to such Purchaser and substantially
in the form of <u>Exhibit D-3</u> (in the case of the Series A Notes) or <u>Exhibit
D-4</u> (in the case of any Shelf Notes) attached hereto, and as to such other
matters as such Purchaser may reasonably request; (iii) Fulbright &amp;
Jaworski L.L.P., special Texas counsel for the Credit Parties satisfactory to
such Purchaser and substantially in the form of <u>Exhibit D-5</u> (in the case
of the Series A Notes) or <u>Exhibit D-6</u> (in the case of any Shelf Notes)
attached hereto, and as to such other matters as such Purchaser may reasonably
request; and (iv) Brownstein Hyatt Farber Schreck, LLP, special Nevada counsel
for the Credit Parties satisfactory to such Purchaser and substantially in the
form of <u>Exhibit D-7</u> (in the case of the Series A Notes) or <u>Exhibit
D-8</u> (in the case of any Shelf Notes) attached hereto.&#160; The Company hereby directs each such counsel
to deliver such opinions, agrees that the issuance and sale of any Notes will
constitute a reconfirmation of such direction, and understands and agrees that
each Purchaser receiving such an opinion will and is hereby authorized to rely
on such opinion;</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:1.0in;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">(g)&#160;&#160;&#160;&#160;&#160;&#160;&#160; a favorable opinion of Bingham McCutchen
LLP, special counsel for PIM and the Purchasers, as to such matters incident to
the matters herein contemplated related to the Series A Notes as such Purchaser
reasonably requests;</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:1.0in;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">(h)&#160;&#160;&#160;&#160;&#160;&#160;&#160; a good standing or similar certificate
for each Credit Party (or its general partner, in the case of a partnership)
from the appropriate Governmental Authority of its jurisdiction of
organization, dated as of a recent date, and such other evidence of the status
of such Persons as such Purchaser may reasonably request; and</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:1.0in;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">(i)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; additional documents or certificates
with respect to legal matters or corporate or other proceedings related to the
transactions contemplated hereby as may be reasonably requested by such
Purchaser.</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="font-size:12.0pt;margin:0in 0in .0001pt;text-align:justify;text-indent:.5in;"><b><font size="3" face="Times New Roman"><font style="font-size:12.0pt;font-weight:bold;">4B(2)&#160;&#160; </font>Payment of Fees.</font></b>&#160; The Company shall have paid to or as directed
by PIM any fees due pursuant to or in connection with this Agreement, including
any Delayed Delivery Fee due pursuant to Section 2B(8)(iii).</p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">8<a name="PB_8_120049_455"></a></font></p>

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</div>
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<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="font-size:12.0pt;margin:0in 0in .0001pt;text-align:justify;text-indent:.5in;"><b><font size="3" face="Times New Roman"><font style="font-size:12.0pt;font-weight:bold;">4B(3)&#160;&#160; </font>Representations and Warranties.</font></b>&#160; The representations and warranties of the
Credit Parties in Section 5 hereof shall, in each case, be correct when made
and on and as of such Closing Day.</p>

<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="font-size:12.0pt;margin:0in 0in .0001pt;text-align:justify;text-indent:.5in;"><b><font size="3" face="Times New Roman"><font style="font-size:12.0pt;font-weight:bold;">4B(4)&#160;&#160; </font>Performance; No Default.</font></b>&#160; Each of the Credit Parties shall have
performed and complied with all agreements and conditions contained in this
Agreement required to be performed or complied with by it prior to or at such
Closing Day, and after giving effect to the issue and sale of the applicable
Series of Notes (and the application of the proceeds thereof pursuant to the
requirements of Section 5.14) no Default or Event of Default shall have
occurred and be continuing.</p>

<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="font-size:12.0pt;margin:0in 0in .0001pt;text-align:justify;text-indent:.5in;"><b><font size="3" face="Times New Roman" style="font-size:12.0pt;font-weight:bold;">4B(5)&#160;&#160; Changes
in Structure.</font></b>&#160;
The Company shall not have changed its jurisdiction of organization or
been a party to any merger or consolidation or succeeded to all or any
substantial part of the liabilities of any other Person, at any time following
the date of the most recent financial statements referred to in Section 5.5.</p>

<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="font-size:12.0pt;margin:0in 0in .0001pt;text-align:justify;text-indent:.5in;"><b><font size="3" face="Times New Roman"><font style="font-size:12.0pt;font-weight:bold;">4B(6)&#160;&#160; </font>Purchase Permitted By Applicable Law, etc.</font></b>&#160; Each Purchaser&#146;s purchase of Notes on such
Closing Day shall (i) be permitted by the laws and regulations of each
jurisdiction to which such Purchaser is subject, without recourse to provisions
(such as Section 1405(a)(8) of the New York Insurance Law) permitting limited
investments by insurance companies without restriction as to the character of
the particular investment, (ii) not violate any applicable law or regulation
(including Regulation T, U or X of the Board of Governors of the Federal
Reserve System), and (iii) not subject such Purchaser to any tax, penalty or
liability under or pursuant to any applicable law or regulation, which law or
regulation was not in effect on the date hereof.&#160; If requested by any Purchaser of Notes on such
Closing Day, such Purchaser shall have received an Officer&#146;s Certificate
certifying as to such matters of fact as it may reasonably specify to enable it
to determine whether such purchase is so permitted.</p>

<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="font-size:12.0pt;margin:0in 0in .0001pt;text-align:justify;text-indent:.5in;"><b><font size="3" face="Times New Roman"><font style="font-size:12.0pt;font-weight:bold;">4B(7)&#160;&#160; </font>Private Placement Number.</font></b>&#160; A Private Placement number issued by Standard
&amp; Poor&#146;s CUSIP Service Bureau (in cooperation with the Securities Valuation
Office of the National Association of Insurance Commissioners) shall have been
obtained for each Series of Notes to be issued on the applicable Closing Day.</p>

<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="font-size:12.0pt;margin:0in 0in .0001pt;text-align:justify;text-indent:.5in;"><b><font size="3" face="Times New Roman"><font style="font-size:12.0pt;font-weight:bold;">4B(8)&#160;&#160; </font>Proceedings and Documents.</font></b>&#160; All corporate, organizational and other
proceedings in connection with the transactions contemplated by this Agreement
and all documents and instruments incident to such transactions shall be
satisfactory to each Purchaser purchasing Notes on the applicable Closing Day
and its special counsel, and each such Purchaser and its U.S. and Canadian
special counsel shall have received all such counterpart originals or certified
or other copies of such documents as such Purchaser or such counsel may
reasonably request.</p>

<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="font-size:12.0pt;font-weight:bold;margin:0in 0in .0001pt .5in;page-break-after:avoid;text-align:justify;text-indent:-.5in;"><b><font size="3" face="Times New Roman" style="font-size:12.0pt;">5</font></b><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>REPRESENTATION
AND WARRANTIES OF THE COMPANY.</p>

<p style="font-weight:bold;margin:0in 0in .0001pt .5in;page-break-after:avoid;text-align:justify;text-indent:-.5in;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></b></p>

<p style="margin:0in 0in .0001pt;text-align:justify;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">The
Company represents and warrants to each Purchaser that:</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">9<a name="PB_9_120049_4141"></a></font></p>

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</div>
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<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:.5in;"><b><font size="3" face="Times New Roman" style="font-size:12.0pt;font-weight:bold;">5.1&#160;&#160;&#160;&#160;&#160;&#160; Organization; Power and Authority.</font></b></p>

<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:.5in;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">&nbsp;</font></b></p>

<p style="margin:0in 0in .0001pt;text-align:justify;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">Each
Credit Party is a corporation or other legal entity duly organized, validly
existing and in good standing under the laws of its jurisdiction of
organization, and is duly qualified as a foreign corporation or other legal
entity and is in good standing in each jurisdiction in which such qualification
is required by law, other than those jurisdictions as to which the failure to
be so qualified or in good standing could not, individually or in the
aggregate, reasonably be expected to have a Material Adverse Effect.&#160; Each Credit Party has the requisite power and
authority to own or hold under lease the Properties it purports to own or hold
under lease, to transact the business it transacts and proposes to transact, to
execute and deliver the Transaction Documents to which it is a party and to
perform the provisions of such Transaction Documents.&#160; The Company is organized in conformity with
the requirements for qualification as a REIT under the Code, and its method of
operation enables it to meet the requirements for qualification and taxation as
a REIT under the Code.</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:.5in;"><b><font size="3" face="Times New Roman" style="font-size:12.0pt;font-weight:bold;">5.2&#160;&#160;&#160;&#160;&#160;&#160; Authorization, etc.</font></b></p>

<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:.5in;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">&nbsp;</font></b></p>

<p style="margin:0in 0in .0001pt;text-align:justify;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">This
Agreement, the Notes and the other Transaction Documents to which any Credit
Party is a party have been duly authorized by all necessary action on the part
of such Credit Party, and each of this Agreement and such other Transaction
Documents (other than the Notes) constitutes, and upon execution and delivery
thereof each Note will constitute, a legal, valid and binding obligation of
each Credit Party that is party to such Transaction Document enforceable
against such Credit Party in accordance with its terms, except as such
enforceability may be limited by (i) applicable bankruptcy, insolvency,
reorganization, moratorium or other similar laws affecting the enforcement of creditors&#146;
rights generally, and (ii) general principles of equity (regardless of whether
such enforceability is considered in a proceeding in equity or at law).</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:.5in;"><b><font size="3" face="Times New Roman" style="font-size:12.0pt;font-weight:bold;">5.3&#160;&#160;&#160;&#160;&#160;&#160; Disclosure.</font></b></p>

<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:.5in;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">&nbsp;</font></b></p>

<p style="margin:0in 0in .0001pt;text-align:justify;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">Neither
this Agreement nor any other document, certificate or statement furnished to
PIM by or on behalf of the Company or the other Credit Parties in connection
herewith, contains any untrue statement of a material fact or omits to state a
material fact necessary in order to make the statements contained herein and
therein not misleading in light of the circumstances under which they were
made, PIM acknowledging that as to any projections furnished to PIM, the
Company only represents that the same were prepared on the basis of information
and estimates the Company believed to be reasonable at the time of the
preparation and delivery thereof.&#160; There
is no fact known to the Company or any other Credit Party that could reasonably
be expected to have a Material Adverse Effect that has not been set forth
herein or in the other documents, certificates and other writings (including
the Company&#146;s most recent reports on Form 10-Q and Form 10-K and the Company&#146;s
reports on Form 8-K filed during the period from January 1, 2010 through the
date hereof) delivered to PIM by or on behalf of the Company or the other
Credit Parties.&#160; Since the date of the
most recent audited balance sheet delivered pursuant to Section 7.1(b), or if
no such balance sheet has been delivered, the most recent audited balance sheet
referred to in Section 5.5, there has been no change in the financial
condition, operations, business, Properties or prospects of the Company or any
Subsidiary except changes that individually or in the aggregate could not
reasonably be expected to have a Material Adverse Effect that has not been set
forth herein or in the other documents, certificates and other writings
delivered to PIM by or on behalf of the Company or the other Credit Parties.</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">10<a name="PB_10_120049_8627"></a></font></p>

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<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;page-break-after:avoid;text-align:justify;text-indent:.5in;"><b><font size="3" face="Times New Roman" style="font-size:12.0pt;font-weight:bold;">5.4&#160;&#160;&#160;&#160;&#160;&#160; Organization
and Ownership of Equity in Subsidiaries; Affiliates.</font></b></p>

<p style="margin:0in 0in .0001pt;page-break-after:avoid;text-align:justify;text-indent:.5in;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">&nbsp;</font></b></p>

<p style="margin:0in 0in .0001pt;page-break-after:avoid;text-align:justify;text-indent:1.0in;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">(a)&#160;&#160;&#160;&#160;&#160;&#160;&#160; <u>Schedule 5.4</u>
contains complete and correct lists as of the Series A Closing Day (and as of
the date such Schedule is updated from time to time as provided in Section
7.1(d)) (i) of each of the Subsidiaries of the Company, showing, as to each
such Person, the correct name thereof, the jurisdiction of its organization,
the percentage of shares of each class of its capital stock or similar equity
interests outstanding owned by the Company and the other Subsidiaries and, if
such percentage is not 100% (excluding directors&#146; qualifying shares as required
by law), a description of each class of its authorized capital stock and other
equity interests and the number of shares or units of each class issued and
outstanding, (ii) of each of the Company&#146;s Affiliates, other than such Person&#146;s
Subsidiaries and other than the other Credit Parties, and (iii) of the
Company&#146;s directors and senior officers.</font></p>

<p style="margin:0in 0in .0001pt;page-break-after:avoid;text-align:justify;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:1.0in;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">(b)&#160;&#160;&#160;&#160;&#160;&#160;&#160; All of the outstanding shares of capital
stock or similar equity interests of each Subsidiary shown in <u>Schedule 5.4</u>
as being owned by the Company and its Subsidiaries have been validly issued,
are fully paid and nonassessable and are owned by the Company or another
Subsidiary free and clear of any Lien except as disclosed on <u>Schedule 5.4</u>.</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:1.0in;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">(c)&#160;&#160;&#160;&#160;&#160;&#160;&#160; Each Subsidiary (other than the Credit
Parties) is a corporation or other legal entity duly organized, validly
existing and in good standing under the laws of its jurisdiction of
organization, and is duly qualified as a foreign corporation or other legal entity
and is in good standing in each jurisdiction in which such qualification is
required by law, other than those jurisdictions as to which the failure to be
so qualified or in good standing could not, individually or in the aggregate,
reasonably be expected to have a Material Adverse Effect.&#160; Each such Subsidiary has the corporate or
other power and authority to own or hold under lease the Properties it purports
to own or hold under lease and to transact business it transacts and proposes
to transact.</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:1.0in;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">(d)&#160;&#160;&#160;&#160;&#160;&#160;&#160; No Subsidiary is a party to, or
otherwise subject to any legal, regulatory, contractual or other restriction
(other than this Agreement, the agreements listed on <u>Schedule 5.4</u> and
customary limitations imposed by corporate law or similar statutes) restricting
the ability of such Subsidiary to pay dividends out of profits or make any
other similar distributions of profits to the Company or any of its
Subsidiaries that owns outstanding shares of capital stock or similar equity
interests of such Subsidiary.</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:.5in;"><b><font size="3" face="Times New Roman" style="font-size:12.0pt;font-weight:bold;">5.5&#160;&#160;&#160;&#160;&#160;&#160; Financial Statements.</font></b></p>

<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:.5in;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">&nbsp;</font></b></p>

<p style="margin:0in 0in .0001pt;text-align:justify;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">The
Company has furnished each Purchaser of the Series A Notes and any Accepted
Notes with the following financial statements:&#160;
(i) consolidated balance sheets of the Company and its Subsidiaries as
of December 31, 2007, 2008 and 2009 and as of the last day in each of the
fiscal years completed thereafter and prior to the date as of which this
representation is made or repeated to such Purchaser (other than fiscal years
completed within 90 days prior to such date for which audited financial
statements have not been released), and consolidated statements of income,
retained earnings and cash flows of the Company and its Subsidiaries for each
such year, all certified by independent certified public accountants of
recognized international standing; and (ii) unaudited consolidated balance
sheets of the Company and its Subsidiaries as at the end of the quarterly
period (if any) most recently completed prior to such date and after the </font></p>

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<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">11<a name="PB_11_120049_7906"></a></font></p>

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<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">end
of the most recent fiscal year (other than quarterly periods completed within
45 days prior to such date for which financial statements have not been
released) and the most recently completed fiscal year end and unaudited
consolidated statements of income and cash flows of the Company and its
Subsidiaries for the periods from the beginning of the fiscal years in which
such quarterly periods are included to the end of such quarterly periods and
the comparable quarterly period in the immediately preceding fiscal year.&#160; Such financial statements (including any
related schedules and/or notes) have been prepared in accordance with GAAP
(subject, as to interim statements, to changes resulting from year-end
adjustments) consistently applied throughout the periods involved and show all
liabilities, direct and contingent, of the Company and its Subsidiaries
required to be shown in accordance with such principles.&#160; The balance sheets fairly present in all
material respects the consolidated financial condition of the Company and its
Subsidiaries as at the dates thereof, and the statements of income, retained
earnings and cash flows fairly present the consolidated financial results of
their operations for the periods indicated.&#160;
The Company and its Subsidiaries do not have any Material liabilities
that are not disclosed on such financial statements or otherwise disclosed in
writing to the Purchasers.&#160; No event has
occurred since the end of the most recent fiscal year for which such audited
financial statements have been furnished which has had or could reasonably be
expected to have a material adverse effect on the condition (business,
financial or otherwise), results of operations, assets, liabilities or
prospects of the Company or any of its Subsidiaries.</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:.5in;"><b><font size="3" face="Times New Roman" style="font-size:12.0pt;font-weight:bold;">5.6&#160;&#160;&#160;&#160;&#160;&#160; Compliance with Laws; Other Instruments,
etc.</font></b></p>

<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:.5in;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">&nbsp;</font></b></p>

<p style="margin:0in 0in .0001pt;text-align:justify;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">The
execution, delivery and performance by each Credit Party of the Transaction
Documents to which it is a party will not (i) contravene, result in any breach
of, or constitute a default under, or result in the creation of any Lien in
respect of any Property of any Credit Party or any of its Subsidiaries under,
any indenture, mortgage, deed of trust, loan, purchase or credit agreement,
lease, corporate charter (or similar constitutive documents) or bylaws (or
similar documents), or any other agreement or instrument to which any Credit
Party or any of its Subsidiaries is bound or by which any Credit Party or any
of its Subsidiaries or any of their respective Properties may be bound or
affected, (ii) conflict with or result in a breach of any of the terms,
conditions or provisions of any order, judgment, decree, or ruling of any
court, arbitrator or Governmental Authority applicable to any Credit Party or
any of its Subsidiaries, or (iii) violate any provision of any statute or other
rule or regulation of any Governmental Authority applicable to any Credit Party
or any of its Subsidiaries.</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">Neither
the Company nor any Subsidiary is in default under the terms of any covenant,
indenture or agreement of or affecting such Person or any of its Property,
which default, if uncured, could reasonably be expected to have a Material
Adverse Effect.</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:.5in;"><b><font size="3" face="Times New Roman" style="font-size:12.0pt;font-weight:bold;">5.7&#160;&#160;&#160;&#160;&#160;&#160; Governmental Authorizations, etc.</font></b></p>

<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:.5in;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">&nbsp;</font></b></p>

<p style="margin:0in 0in .0001pt;text-align:justify;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">No
consent, approval or authorization of, or registration, filing or declaration
with, any Governmental Authority is required in connection with the execution,
delivery or performance by any Credit Party of this Agreement, the Notes or the
other Transaction Documents to which such Person is a party.</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">12<a name="PB_12_120049_3736"></a></font></p>

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<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;page-break-after:avoid;text-align:justify;text-indent:.5in;"><b><font size="3" face="Times New Roman" style="font-size:12.0pt;font-weight:bold;">5.8&#160;&#160;&#160;&#160;&#160;&#160; Litigation;
Observance of Agreements, Statutes and Orders.</font></b></p>

<p style="margin:0in 0in .0001pt;page-break-after:avoid;text-align:justify;text-indent:.5in;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">&nbsp;</font></b></p>

<p style="margin:0in 0in .0001pt;page-break-after:avoid;text-align:justify;text-indent:1.0in;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">(a)&#160;&#160;&#160;&#160;&#160;&#160;&#160; There are no actions,
suits, investigations or proceedings pending or, to the knowledge of the
Company, threatened against or affecting the Company or any of its Subsidiaries
or any Property of the Company or any of its Subsidiaries in any court or
before any arbitrator of any kind or before or by any Governmental Authority
that, individually or in the aggregate, could reasonably be expected to have a
Material Adverse Effect.</font></p>

<p style="margin:0in 0in .0001pt;page-break-after:avoid;text-align:justify;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:1.0in;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">(b)&#160;&#160;&#160;&#160;&#160;&#160;&#160; Neither the Company nor any Subsidiary
is in default under any term of any agreement or instrument to which it is a
party or by which it is bound, or any order, judgment, decree or ruling of any
court, arbitrator or Governmental Authority or is in violation of any
applicable law, ordinance, rule or regulation (including without limitation
Environmental Laws or the USA Patriot Act) of any Governmental Authority, which
default or violation, individually or in the aggregate, could reasonably be
expected to have a Material Adverse Effect.</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:.5in;"><b><font size="3" face="Times New Roman" style="font-size:12.0pt;font-weight:bold;">5.9&#160;&#160;&#160;&#160;&#160;&#160; Taxes.</font></b></p>

<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:.5in;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">&nbsp;</font></b></p>

<p style="margin:0in 0in .0001pt;text-align:justify;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">Each
of the Company and its Subsidiaries has filed, or there has been filed on its
behalf, all tax returns (federal, state, local and foreign) required to be
filed by such Person (giving effect to permitted extensions) and has paid all
taxes shown thereon to be due (giving effect to permitted extensions),
including interest, additions to taxes and penalties, or has provided adequate
reserves in accordance with GAAP for payment thereof, except where the failure
to so file or pay would not cause a Material Adverse Effect.</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:.5in;"><b><font size="3" face="Times New Roman" style="font-size:12.0pt;font-weight:bold;">5.10&#160;&#160;&#160;&#160; Title to Property; Leases.</font></b></p>

<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:.5in;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">&nbsp;</font></b></p>

<p style="margin:0in 0in .0001pt;text-indent:1.0in;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">(a)&#160;&#160;&#160;&#160;&#160;&#160;&#160; The Company and its Subsidiaries have
good and sufficient title to their respective Properties (other than Properties
which are leased) that individually or in the aggregate are Material, including
all such Properties reflected in the most recent audited balance sheet
delivered pursuant to Section 7.1(b), or if no such balance sheet has been
delivered, the most recent audited balance sheet referred to in Section 5.5 or
purported to have been acquired by the Company or any Subsidiary after said
date (except as sold or otherwise disposed of in the ordinary course of
business), in each case free and clear of Liens prohibited by this Agreement.</font></p>

<p style="margin:0in 0in .0001pt;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-indent:1.0in;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">(b)&#160;&#160;&#160;&#160;&#160;&#160;&#160; <u>Schedule 5.10(b)</u> identifies, as
of the Series A Closing Day (and as of the date such Schedule is updated from
time to time as provided in Section 7.1(d)), the Properties which are included
in the computation of the Borrowing Base (separately identifying each Qualified
Ground Lease, the Borrowing Base Value for each such Property, whether each
such Property was then owned more or less than four quarters, and such other
information as would permit a determination to be made as to whether or not
each such Property is an Eligible Property and whether or not such Properties,
taken as a whole, satisfy the Borrowing Base Requirements).&#160; Each of such Properties qualifies as an
Eligible Property and such Properties, taken as a whole, satisfy the Borrowing
Base Requirements to the extent required by Section 10.11(a).</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">13<a name="PB_13_120049_9621"></a></font></p>

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<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:1.0in;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">(c)&#160;&#160;&#160;&#160;&#160;&#160;&#160; <u>Schedule 5.10(c)</u> identifies, as
of the Series A Closing Day (and as of the date such Schedule is updated from
time to time as provided in Section 7.1(d)), each Significant Lease, the
Property which is demised pursuant to each Significant Lease and the name of
each landlord and lessee under each Significant Lease.&#160; Except as set forth on <u>Schedule 5.10(c)</u>,
as of the Series A Closing Day (and as of the date such Schedule is updated
from time to time as provided in Section 7.1(d)):&#160; (x) none of the tenants under Significant
Leases on Properties owned by the Company, Material Subsidiaries or any other
Subsidiary of the Company was (as of such date or at any other time during the
Fiscal Quarter beginning immediately prior to such date) in default for a
period in excess of 60 days on the monthly minimum rent payments due under such
Significant Leases, and (y) no other tenants on other Leases that in the
aggregate generate more than $4,000,000 in annual contractual rents payable to
the Company or its Subsidiaries were (as of such date or at any other time
during the Fiscal Quarter beginning immediately prior to such date) in default
for a period in excess of 60 days on the monthly minimum rent payments due
under such Leases.</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:.5in;"><b><font size="3" face="Times New Roman" style="font-size:12.0pt;font-weight:bold;">5.11&#160;&#160;&#160;&#160; Licenses, Permits, etc.</font></b></p>

<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:.5in;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">&nbsp;</font></b></p>

<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:1.0in;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">(a)&#160;&#160;&#160;&#160;&#160;&#160;&#160; The Company and its Subsidiaries own or
possess all licenses, permits, franchises, authorizations, patents, copyrights,
proprietary software, service marks, trademarks and trade names, or rights
thereto, that individually or in the aggregate are Material, without known
conflict with the rights of others.</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:1.0in;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">(b)&#160;&#160;&#160;&#160;&#160;&#160;&#160; To the best knowledge of the Company, no
product of the Company or any of its Subsidiaries infringes in any material
respect any license, permit, franchise, authorization, patent, copyright,
proprietary software, service mark, trademark, trade name or other right owned
by any other Person.</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:1.0in;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">(c)&#160;&#160;&#160;&#160;&#160;&#160;&#160; To the best knowledge of the Company,
there is no Material violation by any Person of any right of the Company or any
of its Subsidiaries with respect to any patent, copyright, proprietary
software, service mark, trademark, trade name or other right owned or used by
the Company or any of its Subsidiaries.</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:.5in;"><b><font size="3" face="Times New Roman" style="font-size:12.0pt;font-weight:bold;">5.12&#160;&#160;&#160;&#160; Compliance with ERISA.</font></b></p>

<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:.5in;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">&nbsp;</font></b></p>

<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:1.0in;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">(a)&#160;&#160;&#160;&#160;&#160;&#160;&#160; The Company, each Subsidiary and each
ERISA Affiliate have operated and administered each Plan in compliance with all
applicable laws except for such instances of noncompliance as have not resulted
in and could not reasonably be expected to result in a Material Adverse
Effect.&#160; None of the Company, any
Subsidiary or any ERISA Affiliate has incurred any liability pursuant to
Title&nbsp;I or IV of ERISA or the penalty or excise tax provisions of the Code
relating to employee benefit plans (as defined in section&nbsp;3 of ERISA), and
no event, transaction or condition has occurred or exists that could reasonably
be expected to result in the incurrence of any such liability by the Company,
any Subsidiary or any ERISA Affiliate, or in the imposition of any Lien on any
of the rights, properties or assets of the Company, any Subsidiary or any ERISA
Affiliate, in either case pursuant to Title&nbsp;I or IV of ERISA or to such
penalty or excise tax provisions or pursuant to section&nbsp;4068 of ERISA or
the Pension Funding Rules, other than such liabilities or Liens as would not be
individually or in the aggregate Material.</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">14<a name="PB_14_120049_8715"></a></font></p>

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<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:1.0in;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">(b)&#160;&#160;&#160;&#160;&#160;&#160;&#160; The present value of the aggregate
benefit liabilities under each of the Plans (other than Multiemployer Plans),
determined as of the end of such Plan&#146;s most recently ended plan year on the
basis of the actuarial assumptions specified for funding purposes in such
Plan&#146;s most recent actuarial valuation report, did not exceed the aggregate
current value of the assets of such Plan allocable to such benefit
liabilities.&#160; The term <b>&#147;benefit liabilities&#148;</b> has the meaning specified in
section&nbsp;4001 of ERISA and the terms <b>&#147;current value&#148; </b>and
<b>&#147;present value&#148;</b> have the meaning
specified in section&nbsp;3 of ERISA.&#160;
Following the effective date of the Pension Act, for any Plan which is
subject to the Pension Funding Rules, the funding target attainment percentage,
within the meaning of Section 303 of ERISA or Section 430 of the Code, for such
Plan is not less than 100%.</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:1.0in;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">(c)&#160;&#160;&#160;&#160;&#160;&#160;&#160; The Company, the Subsidiaries and its
ERISA Affiliates have not incurred withdrawal liabilities (and are not subject
to contingent withdrawal liabilities) under section&nbsp;4201 or 4204 of ERISA
in respect of Multiemployer Plans that individually or in the aggregate are
Material.</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:1.0in;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">(d)&#160;&#160;&#160;&#160;&#160;&#160;&#160; The expected postretirement benefit
obligation (determined as of the last day of the Company&#146;s most recently ended
fiscal year in accordance with Financial Accounting Standards Board Statement
No. 106, without regard to liabilities attributable to continuation coverage
mandated by section 4980B of the Code) of the Company and its Subsidiaries is
not Material.</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:1.0in;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">(e)&#160;&#160;&#160;&#160;&#160;&#160;&#160; The execution and delivery of this
Agreement and the issuance and sale of the Notes hereunder will not involve any
transaction that is subject to the prohibitions of section&nbsp;406 of ERISA or
in connection with which a tax could be imposed pursuant to
section&nbsp;4975(c)(1)(A)-(D) of the Code.&#160;
The representation by the Company to each Purchaser in the first
sentence of this Section 5.12(e) is made in reliance upon and subject to the
accuracy of such Purchaser&#146;s representation in Section 6.2 as to the sources of
the funds used to pay the purchase price of the Notes to be purchased by such
Purchaser.</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:.5in;"><b><font size="3" face="Times New Roman" style="font-size:12.0pt;font-weight:bold;">5.13&#160;&#160;&#160;&#160; Private Offering.</font></b></p>

<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:.5in;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">&nbsp;</font></b></p>

<p style="margin:0in 0in .0001pt;text-align:justify;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">Neither
the Company nor anyone acting on its behalf has offered the Notes or any
similar securities for sale to, or solicited any offer to buy any of the same
from, or otherwise approached or negotiated in respect thereof with, any Person
other than the Purchasers, each of which has been offered the Notes at a
private sale for investment.&#160; Neither the
Company nor anyone acting on its behalf has taken, or will take, any action
that would subject the issuance or sale of the Notes to the registration
requirements of Section 5 of the Securities Act or the registration
requirements of any securities or blue sky laws of any applicable jurisdiction.</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:.5in;"><b><font size="3" face="Times New Roman" style="font-size:12.0pt;font-weight:bold;">5.14&#160;&#160;&#160;&#160; Use of Proceeds; Margin Regulations.</font></b></p>

<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:.5in;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">&nbsp;</font></b></p>

<p style="margin:0in 0in .0001pt;text-align:justify;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">The
Company will apply the proceeds of the sale of (i) the Series A Notes to
refinance existing indebtedness, for acquisitions, for capital expenditures,
for working capital and for other general corporate purposes, and (ii) each
Series of Shelf Notes in the manner described in the applicable Request for
Purchase with respect to such Series of Shelf Notes.&#160; None of the proceeds of the sale of the Notes
hereunder will be used, directly or indirectly, for the purpose of buying or
carrying any margin stock within the meaning of Regulation&nbsp;U of the Board
of Governors of the Federal Reserve System (12 CFR 221), or for the purpose of
buying or carrying or trading in any </font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">15<a name="PB_15_120049_563"></a></font></p>

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</div>
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<div>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">securities
under such circumstances as to involve the Company in a violation of Regulation
X of said Board (12 CFR 224) or to involve any broker or dealer in a violation
of Regulation T of said Board (12 CFR 220).&#160;
Margin stock does not constitute more than 5% of the value of the
consolidated assets of the Company and its Subsidiaries and the Company does
not have any present intention that margin stock will constitute more than 5%
of the value of such assets.&#160; As used in
this Section, the terms <b>&#147;margin stock&#148;</b>
and <b>&#147;purpose of buying or carrying&#148;</b> shall
have the meanings assigned to them in said Regulation U.</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:.5in;"><b><font size="3" face="Times New Roman" style="font-size:12.0pt;font-weight:bold;">5.15&#160;&#160;&#160;&#160; Existing Debt; Liens.</font></b></p>

<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:.5in;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">&nbsp;</font></b></p>

<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:1.0in;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">(a)&#160;&#160;&#160;&#160;&#160;&#160;&#160; Except as described therein, <u>Schedule
5.15</u> sets forth a complete and correct list as of the Series A Closing Day
of all outstanding Indebtedness for Borrowed Money of the Company and its
Subsidiaries as of June 30, 2010 (including a description of the obligors and
obligees, principal amount outstanding and collateral therefor, if any, and
Guaranties thereof, if any), since which date there has been no Material change
in the amounts, interest rates, sinking funds, installment payments or
maturities of the Indebtedness for Borrowed Money of the Company or any of its
Subsidiaries.&#160; Neither the Company nor
any Subsidiary is in default and no waiver of default is currently in effect,
in the payment of any principal or interest on any Indebtedness for Borrowed Money
of the Company or such Subsidiary and no event or condition exists with respect
to any Indebtedness for Borrowed Money of the Company or any Subsidiary that
would permit (or that with notice or the lapse of time, or both, would permit)
one or more Persons to cause such Indebtedness for Borrowed Money to become due
and payable before its stated maturity or before its regularly scheduled dates
of payment.</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:1.0in;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">(b)&#160;&#160;&#160;&#160;&#160;&#160;&#160; Neither the Company nor any Subsidiary
has agreed or consented to cause or permit in the future (upon the happening of
a contingency or otherwise) any of its Property, whether now owned or hereafter
acquired, to be subject to a Lien not permitted by Section 10.1.</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:1.0in;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">(c)&#160;&#160;&#160;&#160;&#160;&#160;&#160; As of the Series A Closing Day, neither
the Company nor any Subsidiary is a party to, or otherwise subject to any
provision contained in, any instrument evidencing Indebtedness for Borrowed
Money of the Company or such Subsidiary, any agreement relating thereto or any
other agreement (including, but not limited to, its charter or other organizational
document) which limits the amount of, or otherwise imposes restrictions on the
incurring of, Indebtedness for Borrowed Money of the Company or any Subsidiary,
except as specifically indicated in <u>Schedule&nbsp;5.15</u>.</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:.5in;"><b><font size="3" face="Times New Roman"><font style="font-size:12.0pt;font-weight:bold;">5.16&#160;&#160;&#160;&#160; </font>Foreign Assets Control Regulations, etc.</font></b></p>

<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:71.25pt;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">(a)&#160;&#160;&#160;&#160;&#160;&#160;&#160; Neither
the sale of the Notes by the Company hereunder nor its use of the proceeds
thereof will violate the Trading with the Enemy Act, as amended, or any of the
foreign assets control regulations of the United States Treasury Department (31
CFR, Subtitle B, Chapter V, as amended) or any enabling legislation or
executive order relating thereto.</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:71.25pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:71.25pt;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">(b)&#160;&#160;&#160;&#160;&#160;&#160;&#160; Neither
the Company nor any Subsidiary (i) is a Person described or designated in the
Specially Designated National and Blocked Persons List of the Office of Foreign
Assets Control or in Section 1 of the Anti-Terrorism Order, or (ii) engages in
any dealings or transactions with any such Person.&#160; The Company and its Subsidiaries are in
compliance, in all material respects, with the USA Patriot Act.</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">16<a name="PB_16_120049_9497"></a></font></p>

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</div>
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<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:71.25pt;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">(c)&#160;&#160;&#160;&#160;&#160;&#160;&#160; No
part of the proceeds from the sale of the Notes hereunder will be used,
directly or indirectly, for any payments to any governmental official or
employee, political party, official of a political party, candidate for
political office, or anyone else acting in an official capacity, in order to
obtain, retain or direct business or obtain any improper advantage, in
violation of the United States Foreign Corrupt Practices Act of 1977, as amended,
assuming in all cases that such act applies to the Company.</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:71.25pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:.5in;"><b><font size="3" face="Times New Roman" style="font-size:12.0pt;font-weight:bold;">5.17&#160;&#160;&#160;&#160; Status under Certain Statutes.</font></b></p>

<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:.5in;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">&nbsp;</font></b></p>

<p style="margin:0in 0in .0001pt;text-align:justify;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">Neither
the Company nor any of its Subsidiaries is subject to regulation under the
Investment Company Act of 1940, as amended, the Public Utility Holding Company
Act of 2005, as amended, the ICC Termination Act of 1995, as amended, or the
Federal Power Act, as amended.</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:.5in;"><b><font size="3" face="Times New Roman"><font style="font-size:12.0pt;font-weight:bold;">5.18&#160;&#160;&#160;&#160; </font>Environmental Matters.</font></b></p>

<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:1.0in;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">(a)&#160;&#160;&#160;&#160;&#160;&#160;&#160; Neither the Company nor any Subsidiary
has knowledge of any claim or has received any notice of any claim, and no
proceeding has been instituted raising any claim against the Company or any of
its Subsidiaries or any of their respective real properties now or formerly
owned, leased or operated by any of them or other assets, alleging any damage
to the environment or violation of any Environmental Laws, except, in each
case, such as could not reasonably be expected to result in a Material Adverse
Effect.</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:1.0in;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">(b)&#160;&#160;&#160;&#160;&#160;&#160;&#160; Neither the Company nor any Subsidiary
has knowledge of any claim or has knowledge that any of its tenants has
received any notice of any claim, and neither the Company nor any Subsidiary
has knowledge that any proceeding has been instituted raising any claim against
any tenant of the Company or its Subsidiaries with respect to their use of any
real properties or other assets now or formerly owned, leased or operated by
any of the Company or its Subsidiaries, alleging any damage to the environment
or violation of any Environmental Laws, except, in each case, such as could not
reasonably be expected to result in a Material Adverse Effect.</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:1.0in;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">(c)&#160;&#160;&#160;&#160;&#160;&#160;&#160; Neither the Company nor any Subsidiary
has knowledge of any facts which would give rise to any claim, public or
private, of violation of Environmental Laws or damage to the environment
emanating from, occurring on or in any way related to real properties now or
formerly owned, leased or operated by any of them or to other assets or their
use, except, in each case, such as could not reasonably be expected to result
in a Material Adverse Effect.</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:1.0in;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">(d)&#160;&#160;&#160;&#160;&#160;&#160;&#160; Neither the Company nor any Subsidiary
has, and to the knowledge of the Company and its Subsidiaries none of its
tenants has, stored any material quantities of Hazardous Materials on real
properties now or formerly owned, leased or operated by any of the Company or
its Subsidiaries; and neither the Company nor any Subsidiary has, and to the
knowledge of the Company and its Subsidiaries none of its tenants or any other
Person has, disposed of any Hazardous Materials in a manner contrary to any
Environmental Laws in each case in any manner that could reasonably be expected
to result in a Material Adverse Effect;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">17<a name="PB_17_120049_3641"></a></font></p>

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<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:1.0in;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">(e)&#160;&#160;&#160;&#160;&#160;&#160;&#160; To the knowledge of the Company and its
Subsidiaries, the tenants of the Company and its Subsidiaries have obtained all
governmental approvals required for the operation of the Properties under
applicable Environmental Laws, except such as could not reasonably be expected
to result in a Material Adverse Effect; and</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:1.0in;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">(f)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; To the knowledge of the Company, all
buildings on all real properties now owned, leased or operated by the Company
or any Subsidiary are in compliance with applicable Environmental Laws, except
where failure to comply could not reasonably be expected to result in a
Material Adverse Effect.</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:.5in;"><b><font size="3" face="Times New Roman" style="font-size:12.0pt;font-weight:bold;">5.19&#160;&#160;&#160;&#160; Stock of the Company.</font></b></p>

<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:.5in;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">&nbsp;</font></b></p>

<p style="margin:0in 0in .0001pt;text-align:justify;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">As
of the Series A Closing Day, the entire outstanding capital stock of the
Company consists of:&#160; (i) Series C
Cumulative Convertible Preferred Stock, 2,000,000 shares outstanding; (ii)
Series E Cumulative Convertible Preferred Stock, 37,816 shares outstanding;
(iii) Series F Cumulative Preferred Stock, 5,894,216 shares outstanding; and
(iv) Common Stock, 23,799,484 shares outstanding.</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:.5in;"><b><font size="3" face="Times New Roman" style="font-size:12.0pt;font-weight:bold;">5.20&#160;&#160;&#160;&#160; Condition of Property; Casualties;
Condemnation.</font></b></p>

<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:.5in;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">&nbsp;</font></b></p>

<p style="margin:0in 0in .0001pt;text-align:justify;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">As
of the Series A Closing Day, to the knowledge of the Company or its Material
Subsidiaries, each Property owned by them, in all material respects (a) is in
good repair, working order and condition, normal wear and tear excepted, (b) is
free of structural defects, (c) is not subject to material deferred
maintenance, and (d) has and will have all building systems contained therein
in good repair, working order and condition, normal wear and tear
excepted.&#160; To the knowledge of the
Company or of any of its Subsidiaries, none of the Properties owned by them is
currently materially and adversely affected as a result of any fire, explosion,
earthquake, flood, drought, windstorm, accident, strike or other labor
disturbance, embargo, requisition or taking of Property or cancellation of
contracts, permits or concessions by a Governmental Authority, riot, activities
of armed forces or acts of God or of any public enemy.&#160; No condemnation or other like proceedings
that has had, or could reasonably be expected to result in, a Material Adverse
Effect, are pending and served nor, to the knowledge of the Company, threatened
against any Property owned by it or any of its Subsidiaries in any manner
whatsoever.&#160; No casualty has occurred to
any such Property that could reasonably be expected to have a Material Adverse
Effect.</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:.5in;"><b><font size="3" face="Times New Roman" style="font-size:12.0pt;font-weight:bold;">5.21&#160;&#160;&#160;&#160; Legal Requirements and Zoning.</font></b></p>

<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">To
the knowledge of the Company and its Subsidiaries, the use and operation of
each Property owned by the Company or its Subsidiaries constitutes a legal use
under applicable zoning regulations (as the same may be modified by special use
permits or the granting of variances) and complies in all material respects
with all Legal Requirements, and does not violate in any material respect any
material approvals, material restrictions of record or any material agreement
affecting any such Property (or any portion thereof).</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:.5in;"><b><font size="3" face="Times New Roman" style="font-size:12.0pt;font-weight:bold;">5.22&#160;&#160;&#160;&#160; Qualified Ground Leases.</font></b></p>

<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">The
only material leases of Eligible Properties for which either the Company or a
Guarantor is a lessee are the Qualified Ground Leases.&#160; The Property Owner for a Real Property
subject to a Qualified Ground Lease is the lessee under such Qualified Ground
Lease and no consent is necessary to such Person being the lessee under such
Qualified Ground Lease which has not already been obtained.&#160; The Qualified Ground Leases are in full force
and effect and no defaults exist thereunder.</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">18<a name="PB_18_120137_7672"></a></font></p>

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<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:.5in;"><b><font size="3" face="Times New Roman" style="font-size:12.0pt;font-weight:bold;">5.23&#160;&#160;&#160;&#160; Solvency.</font></b></p>

<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">The
Company and each of its Subsidiaries are solvent, able to pay their debts as
they become due, and have sufficient capital to carry on their business and all
businesses in which they are about to engage.</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="font-size:12.0pt;margin:0in 0in .0001pt;text-align:justify;text-indent:.5in;"><b><font size="3" face="Times New Roman"><font style="font-size:12.0pt;font-weight:bold;">5.24&#160;&#160;&#160;&#160; </font>Hostile Tender Offers.&#160; </font></b>None
of the proceeds of the sale of any Notes will be used to finance a Hostile
Acquisition.</p>

<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="font-size:12.0pt;font-weight:bold;margin:0in 0in .0001pt .5in;page-break-after:avoid;text-align:justify;text-indent:-.5in;"><b><font size="3" face="Times New Roman" style="font-size:12.0pt;">6</font></b><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>REPRESENTATIONS
OF THE PURCHASERS.</p>

<p style="font-weight:bold;margin:0in 0in .0001pt .5in;page-break-after:avoid;text-align:justify;text-indent:-.5in;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></b></p>

<p style="font-size:12.0pt;margin:0in 0in .0001pt;text-align:justify;text-indent:.5in;"><b><font size="3" face="Times New Roman"><font style="font-size:12.0pt;font-weight:bold;">6.1&#160;&#160;&#160;&#160;&#160;&#160; </font>Purchase for Investment.&#160; </font></b>Each
Purchaser severally represents that it is purchasing the Notes for its own
account or for one or more separate accounts maintained by such Purchaser or
for the account of one or more pension or trust funds and not with a view to
the distribution thereof, <u>provided</u> that the disposition of such
Purchaser&#146;s or their property shall at all times be within such Purchaser&#146;s or
their control.&#160; Each Purchaser
understands that the Notes have not been registered under the Securities Act
and may be resold only if registered pursuant to the provisions of the
Securities Act or if an exemption from registration is available, except under
circumstances where neither such registration nor such an exemption is required
by law, and that the Company is not required to register the Notes.</p>

<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;page-break-after:avoid;text-align:justify;text-indent:.5in;"><b><font size="3" face="Times New Roman" style="font-size:12.0pt;font-weight:bold;">6.2&#160;&#160;&#160;&#160;&#160;&#160; Source of Funds.</font></b></p>

<p style="margin:0in 0in .0001pt;page-break-after:avoid;text-align:justify;text-indent:.5in;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">&nbsp;</font></b></p>

<p style="margin:0in 0in .0001pt;page-break-after:avoid;text-align:justify;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">Each Purchaser
severally represents that at least one of the following statements is an
accurate representation as to each source of funds (a &#147;<b>Source</b>&#148;) to be used by such Purchaser to
pay the purchase price of the Notes to be purchased by such Purchaser
hereunder:</font></p>

<p style="margin:0in 0in .0001pt;page-break-after:avoid;text-align:justify;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:1.0in;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">(a)&#160;&#160;&#160;&#160;&#160;&#160;&#160; the Source is an &#147;insurance company
general account&#148; (as the term is defined in the United States Department of
Labor&#146;s Prohibited Transaction Exemption (&#147;<b>PTE</b>&#148;)
95-60) in respect of which the reserves and liabilities (as defined by the
annual statement for life insurance companies approved by the National
Association of Insurance Commissioners (the &#147;<b>NAIC
Annual Statement</b>&#148;)) for the general account contract(s) held by or
on behalf of any employee benefit plan together with the amount of the reserves
and liabilities for the general account contract(s) held by or on behalf of any
other employee benefit plans maintained by the same employer (or affiliate
thereof as defined in PTE 95-60) or by the same employee organization in the
general account do not exceed 10% of the total reserves and liabilities of the
general account (exclusive of separate account liabilities) plus surplus as set
forth in the NAIC Annual Statement filed with such Purchaser&#146;s state of
domicile; or</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:1.0in;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">(b)&#160;&#160;&#160;&#160;&#160;&#160;&#160; the Source is a separate account that is
maintained solely in connection with such Purchaser&#146;s fixed contractual
obligations under which the amounts payable, or credited, to any employee
benefit plan (or its related trust) that has any interest in such separate
account (or to any participant or beneficiary of such plan (including any
annuitant)) are not affected in any manner by the investment performance of the
separate account; or</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">19<a name="PB_19_120137_536"></a></font></p>

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</div>
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<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:1.0in;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">(c)&#160;&#160;&#160;&#160;&#160;&#160;&#160; the Source is either (i) an insurance
company pooled separate account, within the meaning of PTE 90-1, or (ii) a bank
collective investment fund, within the meaning of the PTE 91-38 and, except as
disclosed by such Purchaser to the Company in writing pursuant to this clause
(c), no employee benefit plan or group of plans maintained by the same employer
or employee organization beneficially owns more than 10% of all assets
allocated to such pooled separate account or collective investment fund; or</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:1.0in;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">(d)&#160;&#160;&#160;&#160;&#160;&#160;&#160; the Source constitutes assets of an
&#147;investment fund&#148; (within the meaning of Part V of PTE 84-14 (the &#147;<b>QPAM Exemption</b>&#148;)) managed by a &#147;qualified
professional asset manager&#148; or &#147;QPAM&#148; (within the meaning of Part V of the QPAM
Exemption), no employee benefit plan&#146;s assets that are included in such
investment fund, when combined with the assets of all other employee benefit
plans established or maintained by the same employer or by an affiliate (within
the meaning of Section V(c)(1) of the QPAM Exemption) of such employer or by
the same employee organization and managed by such QPAM, exceed 20% of the
total client assets managed by such QPAM, the conditions of Part I(c) and (g)
of the QPAM Exemption are satisfied, as of the last day of its most recent
calendar quarter, neither the QPAM nor a person controlling or controlled by
the QPAM (applying the definition of &#147;control&#148; in Section V(e) of the QPAM
Exemption) owns a 10% or more interest in the Company and (i) the identity of
such QPAM, and (ii) the names of all employee benefit plans whose assets
managed by the QPAM in the investment fund, when combined with the assets of
other plans established or maintained by the same employer (or affiliate
thereof described in Section V(c)(1) of the QPAM Exemption) or by the same
employee organization, represent 10% or more of the assets of the investment
fund have been disclosed to the Company in writing pursuant to this clause (d);
or</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:1.0in;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">(e)&#160;&#160;&#160;&#160;&#160;&#160;&#160; the Source constitutes assets of a
&#147;plan(s)&#148; (within the meaning of Section IV of PTE 96-23 (the &#147;<b>INHAM Exemption</b>&#148;)) managed by an &#147;in-house
asset manager&#148; or &#147;INHAM&#148; (within the meaning of Part IV of the INHAM exemption),
the conditions of Part I(a), (g) and (h) of the INHAM Exemption are satisfied,
neither the INHAM nor a person controlling or controlled by the INHAM (applying
the definition of &#147;control&#148; in Section IV(h) of the INHAM Exemption) owns a 5%
or more interest in the Company and (i) the identity of such INHAM, and (ii)
the name(s) of the employee benefit plan(s) whose assets constitute the Source
have been disclosed to the Company in writing pursuant to this clause (e); or</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:1.0in;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">(f)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; the Source is a governmental plan; or</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:1.0in;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">(g)&#160;&#160;&#160;&#160;&#160;&#160;&#160; the Source is one or more employee
benefit plans, or a separate account or trust fund comprised of one or more
employee benefit plans, or one or more plans, within the meaning of Section
4975 of the Code, each of which has been identified to the Company in writing
pursuant to this clause (g); or</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:1.0in;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">(h)&#160;&#160;&#160;&#160;&#160;&#160;&#160; the Source does not include the &#147;plan
assets,&#148; within the meaning of Department of Labor Regulations Section
2510.3-101, as modified by Section 3(42) of ERISA, of any employee benefit plan
subject to the fiduciary responsibility provisions of Title I of ERISA or of
any plan to which Section 4975 of the Code applies.</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">As
used in this Section 6.2, the terms &#147;employee benefit plan&#148;, &#147;governmental
plan&#148;, and &#147;separate account&#148; shall have the respective meanings assigned to
such terms in Section 3 of ERISA.</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">20<a name="PB_20_120137_5926"></a></font></p>

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<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="font-size:12.0pt;font-weight:bold;margin:0in 0in .0001pt .5in;page-break-after:avoid;text-align:justify;text-indent:-.5in;"><b><font size="3" face="Times New Roman" style="font-size:12.0pt;">7</font></b><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>INFORMATION
AS TO THE COMPANY.</p>

<p style="font-weight:bold;margin:0in 0in .0001pt .5in;page-break-after:avoid;text-align:justify;text-indent:-.5in;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></b></p>

<p style="margin:0in 0in .0001pt;text-align:justify;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">The
Company covenants that during the Issuance Period and so long thereafter as any
Notes remain outstanding or any amounts owing under the Transaction Documents
remain unpaid:</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="font-size:12.0pt;margin:0in 0in .0001pt;text-align:justify;text-indent:.5in;"><b><font size="3" face="Times New Roman"><font style="font-size:12.0pt;font-weight:bold;">7.1&#160;&#160;&#160;&#160;&#160;&#160; </font>Financial and Business Information</font></b>.&#160; The Company shall deliver to each holder of
Notes that is an Institutional Investor:</p>

<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:1.0in;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">(a)&#160;&#160;&#160;&#160;&#160;&#160;&#160; <i>Quarterly Statements</i>
&#151; as soon as available, and in any event within 45 days after the close of each
of the first three (3) Fiscal Quarters of each Fiscal Year of the Company a
copy of the consolidated balance sheet of the Company and its Subsidiaries as
of the last day of such Fiscal Quarter and the consolidated statements of
income and cash flows of the Company and its Subsidiaries for such quarter and
for the fiscal year-to-date period then ended, each in reasonable detail
showing in comparative form the figures for the corresponding date and period
in the previous Fiscal Year, prepared by the Company in accordance with GAAP
and certified to by its chief financial officer or another officer of the
Company acceptable to the Required Holders (the filing within the time period
specified above of the Company&#146;s Form 10-Q for such Fiscal Quarter on the EDGAR
system shall satisfy this requirement);</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:1.0in;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">(b)&#160;&#160;&#160;&#160;&#160;&#160;&#160; <i>Annual Statements</i>
&#151; as soon as available, and in any event within 90 days after the end of each
Fiscal Year of the Company, duplicate copies of</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="font-size:12.0pt;line-height:normal;margin:0in 0in .0001pt 1.0in;text-align:justify;text-indent:.5in;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">(i)</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>a
consolidated balance sheet of the Company and its Subsidiaries as at the end of
such year, and</p>

<p style="line-height:normal;margin:0in 0in .0001pt 1.0in;text-align:justify;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="font-size:12.0pt;line-height:normal;margin:0in 0in .0001pt 1.0in;text-align:justify;text-indent:.5in;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">(ii)</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>consolidated
statements of income, changes in stockholders&#146; equity and cash flows of the
Company and its Subsidiaries for such year,</p>

<p style="line-height:normal;margin:0in 0in .0001pt 1.0in;text-align:justify;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="line-height:normal;margin:0in 0in .0001pt .5in;text-align:justify;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">setting
forth in each case in comparative form the figures for the previous fiscal
year, all in reasonable detail, prepared in accordance with GAAP, and
accompanied by an opinion thereon of independent public accountants of
recognized national standing, which opinion shall state that such financial
statements present fairly, in all material respects, the financial position of
the companies being reported upon and their results of operations and cash
flows and have been prepared in conformity with GAAP, and that the examination
of such accountants in connection with such financial statements has been made
in accordance with generally accepted auditing standards, and that such audit
provides a reasonable basis for such opinion in the circumstances,</font></p>

<p style="line-height:normal;margin:0in 0in .0001pt .5in;text-align:justify;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="font-size:12.0pt;margin:0in 0in .0001pt;text-align:justify;text-indent:0in;"><u><font size="3" face="Times New Roman" style="font-size:12.0pt;">provided</font></u> that the filing within the time
period specified above of the Company&#146;s Form&nbsp;10-K for such Fiscal Year
(together with the Company&#146;s annual report to shareholders, if any, prepared
pursuant to Rule&nbsp;14a-3 under the Exchange Act, <u>provided</u> that such
annual report need not be filed until required to be filed pursuant to SEC
requirements) prepared in accordance with the requirements therefor and filed
with the SEC shall be deemed to satisfy the requirements of this
Section&nbsp;7.1(b);</p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">21<a name="PB_21_120137_4688"></a></font></p>

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</div>
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<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:1.0in;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">(c)&#160;&#160;&#160;&#160;&#160;&#160;&#160; <i>Quarterly Borrowing Base
Certificates </i>&#151; during such times as Section 10.11 shall be operative
in accordance with the terms hereof, as soon as available, and in any event
within 50 days after the last day of each Fiscal Quarter (except for the fourth
Fiscal Quarter, in which event it shall be on the 60th day following the last
day such quarter), a Borrowing Base Certificate showing the computation of the
Borrowing Base in reasonable detail as of the close of business on the last day
of such Fiscal Quarter, prepared by the Company and certified by a Senior
Financial Officer;</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:1.0in;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">(d)&#160;&#160;&#160;&#160;&#160;&#160;&#160; <i>Quarterly Operating
Reports</i> &#151; within 45 days after the last day of each of the first
three Fiscal Quarters and within 90 days after the last day of the fourth
Fiscal Quarter of the year:&#160; (i) a list
(a) of all newly formed or acquired Subsidiaries during such quarter (such list
shall contain the information relative to such new Subsidiaries as set forth in
<u>Schedule 5.4</u> hereto and upon receipt of which Schedule 5.4 shall be
deemed amended to include references to such Subsidiaries), and (b) identifying
any Subsidiary whose capital stock or other equity interests were transferred
during such quarter as permitted by Section 10.4(c), together with the name of
the transferor and transferee thereof; (ii) a list of newly executed Qualified
Ground Leases or Significant Leases during such quarter (upon receipt of which,
<u>Schedule 5.10(b) </u>and/or <u>Schedule 5.10(c)</u> shall be deemed amended
to include references to such Significant Lease and/or Qualified Ground
Leases); (iii) a copy of any notice of a material default or any other material
notice (including, without limitation, property condition reviews) received by
the Company or any Guarantor from any ground lessor under a Qualified Ground
Lease or a Lease during such quarter; and (iv) a schedule showing for such
quarter (a) any Significant Lease that was or is continuing to be in default
with respect to monthly minimum rent payments in excess of 60 days, and (b) any
other Leases that in the aggregate generate more than $4,000,000 in annual
contractual rents payable to the Company or its Subsidiaries that were or are
continuing to be in default for a period in excess of 60 days on the monthly
minimum rent payments due under such Leases;</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:1.0in;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">(e)&#160;&#160;&#160;&#160;&#160;&#160;&#160; <i>Annual Projections</i>
&#151; as soon as available, and in any event within 90 days after the last day of
each Fiscal Year of the Company, a copy of the Company&#146;s consolidated
projections of revenues, expenses and balance sheet on a quarter-by-quarter
basis, with such projections in reasonable detail prepared by the Company and
in form satisfactory to the Required Holders (which shall include a summary of
all significant assumptions made in preparing such business plan);</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:1.0in;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">(f)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <i>SEC and Other Reports</i>
&#151; promptly upon their becoming available, (i) one copy of each financial
statement, report or notice sent by the Company or any Subsidiary to its
principal lending banks as a whole (including, without limitation, each
Borrowing Base Certificate, but excluding any other information sent to such
banks in the ordinary course of administration of a bank facility, such as
information relating to pricing and borrowing availability), and (ii)&nbsp;each
report on Form 8-K (or any similar successor form) and all amendments thereto
(which documents may be delivered by email) filed by the Company or any
Subsidiary with the SEC;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">22<a name="PB_22_120137_2983"></a></font></p>

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</div>
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<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:1.0in;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">(g)&#160;&#160;&#160;&#160;&#160;&#160;&#160; <i>Notice of Default or Event
of Default</i> &#151; promptly, and in any event within five days after a
Responsible Officer becoming aware of the existence of any Default or Event of
Default or that any Person has given any notice or taken any action with
respect to a claimed default hereunder or that any Person has given any notice
or taken any action with respect to a claimed default of the type referred to
in Section 11(f), a written notice specifying the nature and period of
existence thereof and what action the Company is taking or proposes to take
with respect thereto;</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:1.0in;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">(h)&#160;&#160;&#160;&#160;&#160;&#160;&#160; <i>Notices from Governmental
Authority</i> &#151; promptly, and in any event within 30 days of receipt
thereof, copies of any notice to the Company or any Subsidiary from any federal
or state Governmental Authority relating to any order, ruling, statute or other
law or regulation that could reasonably be expected to have a Material Adverse Effect;</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:1.0in;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">(i)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <i>Other Notices</i> &#151;
promptly after knowledge thereof shall have come to the attention of any
Responsible Officer of the Company, written notice of (i) any threatened or
pending litigation or governmental or arbitration proceeding or labor
controversy against the Company or any Subsidiary which, if adversely
determined, could reasonably be expected to have a Material Adverse Effect, or
(ii) during such times as Section 10.11 shall be operative in accordance with
the terms hereof, if a Lease of any Property included in the Borrowing Base
Value is more than thirty (30) days past due;</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:1.0in;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">(j)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <i>ERISA Matters</i> &#151;
promptly, and in any event within five days after a Responsible Officer
becoming aware of any of the following, a written notice setting forth the
nature thereof and the action, if any, that the Company or an ERISA Affiliate
proposes to take with respect thereto:</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="line-height:normal;margin:0in 0in .0001pt 1.0in;text-align:justify;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; (i)&#160;&#160;&#160;&#160;&#160; with respect to any Plan, any reportable
event, as defined in section&nbsp;4043(c) of ERISA and the regulations
thereunder, for which notice thereof has not been waived pursuant to such
regulations as in effect on the date hereof; or</font></p>

<p style="line-height:normal;margin:0in 0in .0001pt 1.0in;text-align:justify;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="line-height:normal;margin:0in 0in .0001pt 1.0in;text-align:justify;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; (ii)&#160;&#160;&#160;&#160;&#160; the taking by the PBGC of steps to
institute, or the threatening by the PBGC of the institution of, proceedings
under section&nbsp;4042 of ERISA for the termination of, or the appointment of
a trustee to administer, any Plan, or the receipt by the Company or any ERISA
Affiliate of a notice from a Multi-employer Plan that such action has been
taken by the PBGC with respect to such Multi-employer Plan; or</font></p>

<p style="line-height:normal;margin:0in 0in .0001pt 1.0in;text-align:justify;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt 1.0in;text-align:justify;text-indent:0in;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; (iii)&#160;&#160;&#160;&#160;&#160;&#160; any event, transaction or condition that
could result in the incurrence of any liability by the Company or any ERISA
Affiliate pursuant to Title I or IV of ERISA or the penalty or excise tax
provisions of the Code relating to employee benefit plans, or in the imposition
of any Lien on any of the rights, properties or assets of the Company or any
ERISA Affiliate pursuant to Title I or IV of ERISA or such penalty or excise
tax provisions, if such liability or Lien, taken together with any other such
liabilities or Liens then existing, could reasonably be expected to have a
Material Adverse Effect; and</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">23<a name="PB_23_120137_6228"></a></font></p>

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<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:1.0in;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">(k)&#160;&#160;&#160;&#160;&#160;&#160;&#160; <i>Requested Information</i>
&#151; with reasonable promptness, such other data and information relating to the
business, operations, affairs, financial condition, assets or properties of the
Company or any of its Subsidiaries or relating to the ability of the Company to
perform its obligations hereunder and under the Notes as from time to time may
be reasonably requested by any such holder of Notes.</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="font-size:12.0pt;margin:0in 0in .0001pt;text-align:justify;text-indent:.5in;"><b><font size="3" face="Times New Roman"><font style="font-size:12.0pt;font-weight:bold;">7.2&#160;&#160;&#160;&#160;&#160;&#160; </font>Officer&#146;s Certificate.</font></b>&#160;
Each set of financial statements delivered to a holder of Notes pursuant
to Section&nbsp;7.1(a) or Section 7.1(b) shall be accompanied by a certificate
of a Senior Financial Officer setting forth:</p>

<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:1.0in;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">(a)&#160;&#160;&#160;&#160;&#160;&#160;&#160; <i>Covenant Compliance</i>
&#151; the information (including detailed calculations) required in order to
establish whether the Company was in compliance with the requirements of
Section 10.2, Section 10.3, Section 10.10 and Section 10.11 during the
quarterly or annual period covered by the statements then being furnished
(including with respect to each such Section, where applicable, (i) the
calculations of the maximum or minimum amount, ratio or percentage, as the case
may be, permissible under the terms of such Sections, and the calculation of
the amount, ratio or percentage then in existence, and (ii) a reconciliation
from GAAP, as reflected in the statements then being furnished, to the
calculation of the financial covenants in Section 10.2, Section 10.3, Section
10.10 and Section 10.11, after giving effect to the exclusion from GAAP of the
effects of Accounting Standards Codification 825-10-25 (previously referred to
as SFAS 159) or any successor or similar provision to the extent it relates to
&#147;fair value&#148; accounting for liabilities); and</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:1.0in;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">(b)&#160;&#160;&#160;&#160;&#160;&#160;&#160; <i>Event of Default</i>
&#151; a statement that such Senior Financial Officer has reviewed the relevant
terms hereof and has made, or caused to be made, under his or her supervision,
a review of the transactions and conditions of the Company and its Subsidiaries
from the beginning of the quarterly or annual period covered by the statements
then being furnished to the date of the certificate and that such review shall
not have disclosed the existence during such period of any condition or event
that constitutes a Default or an Event of Default or, if any such condition or
event existed or exists (including, without limitation, any such event or
condition resulting from the failure of the Company or any Subsidiary to comply
with any Environmental Law), specifying the nature and period of existence
thereof and what action the Company shall have taken or proposes to take with
respect thereto.</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="font-size:12.0pt;margin:0in 0in .0001pt;text-align:justify;text-indent:.5in;"><b><font size="3" face="Times New Roman" style="font-size:12.0pt;font-weight:bold;">7.3&#160;&#160;&#160;&#160;&#160;&#160; Visitation.</font></b>&#160; The Company shall permit the representatives
of each holder of Notes that is an Institutional Investor:</p>

<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:1.0in;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">(a)&#160;&#160;&#160;&#160;&#160;&#160;&#160; <i>No Default</i> &#151; if
no Default or Event of Default then exists, at the expense of such holder and
upon reasonable prior notice to the Company, to visit the principal executive
office of the Company, to discuss the affairs, finances and accounts of the
Company and its Subsidiaries with the Company&#146;s officers, and (with the consent
of the Company, which consent will not be unreasonably withheld) its
independent public accountants, and (with the consent of the Company, which
consent will not be unreasonably withheld) to visit the other offices and
properties of the Company and each Subsidiary, all at such reasonable times and
as often as may be reasonably requested in writing; and</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">24<a name="PB_24_120137_6479"></a></font></p>

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<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:1.0in;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">(b)&#160;&#160;&#160;&#160;&#160;&#160;&#160; <i>Default</i> &#151; if a
Default or Event of Default then exists, at the expense of the Company to visit
and inspect any of the offices or properties of the Company or any Subsidiary,
to examine all their respective books of account, records, reports and other
papers, to make copies and extracts therefrom, and to discuss their respective
affairs, finances and accounts with their respective officers and independent
public accountants (and by this provision the Company authorizes said
accountants to discuss the affairs, finances and accounts of the Company and
its Subsidiaries), all at such times and as often as may be requested.</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="font-size:12.0pt;font-weight:bold;margin:0in 0in .0001pt .5in;page-break-after:avoid;text-align:justify;text-indent:-.5in;"><b><font size="3" face="Times New Roman" style="font-size:12.0pt;">8</font></b><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>PREPAYMENT
OF THE NOTES.</p>

<p style="font-weight:bold;margin:0in 0in .0001pt .5in;page-break-after:avoid;text-align:justify;text-indent:-.5in;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></b></p>

<p style="margin:0in 0in .0001pt;text-align:justify;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">The
Series A Notes and any Shelf Notes shall be subject to required prepayment as
and to the extent provided in Section 8.1.&#160;
The Series A Notes and any Shelf Notes shall also be subject to
prepayment under the circumstances set forth in Section 8.2.</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:.5in;"><b><font size="3" face="Times New Roman"><font style="font-size:12.0pt;font-weight:bold;">8.1&#160;&#160;&#160;&#160;&#160;&#160; </font>Required Prepayments.</font></b></p>

<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:1.0in;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">(a)&#160;&#160;&#160;&#160;&#160;&#160;&#160; <b>Series A-1 Notes.</b>&#160; As provided therein, the entire unpaid
principal balance of the Series A-1 Notes shall be due and payable on the
stated maturity date thereof.</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:1.0in;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">(b)&#160;&#160;&#160;&#160;&#160;&#160;&#160; <b>Series A-2 Notes.</b>&#160; On January 14, 2014 and on each January 14
thereafter to and including January 14, 2018 the Company will prepay
$4,166,666.67 principal amount (or such lesser principal amount as shall then
be outstanding) of the Series A-2 Notes at par and without payment of the
Make-Whole Amount or any premium, <u>provided</u> that upon any partial
prepayment of the Series A-2 Notes pursuant to Section 8.2, the principal
amount of each required prepayment of the Series A-2 Notes becoming due under
this Section&nbsp;8.1 on and after the date of such prepayment shall be reduced
in the same proportion as the aggregate unpaid principal amount of the Series
A-2 Notes is reduced as a result of such prepayment.</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:1.0in;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">(c)&#160;&#160;&#160;&#160;&#160;&#160;&#160; <b>Shelf Notes.</b>&#160; Each Series of Shelf Notes shall be subject
to required prepayments, if any, set forth in the Notes of such Series; <u>provided</u> that upon any partial
prepayment of any Series of Shelf Notes pursuant to Section 8.2, the principal
amount of each required prepayment thereof becoming due on and after the date
of such partial prepayment shall be reduced in the same proportion as the
aggregate principal amount of such Series of Shelf Notes is reduced as a result
of such prepayment.</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;page-break-after:avoid;text-align:justify;text-indent:.5in;"><b><font size="3" face="Times New Roman" style="font-size:12.0pt;font-weight:bold;">8.2&#160;&#160;&#160;&#160;&#160;&#160; Optional
Prepayments with Make-Whole Amount.</font></b></p>

<p style="margin:0in 0in .0001pt;page-break-after:avoid;text-align:justify;text-indent:.5in;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">&nbsp;</font></b></p>

<p style="margin:0in 0in .0001pt;text-align:justify;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">The
Company may, at its option, upon notice as provided below, prepay at any time
all, or from time to time any part of, the Notes of any Series (to the
exclusion of all other Series), in an amount not less than $1,000,000 (and
increments of $100,000 in excess thereof) of the aggregate principal amount of
the Notes of such Series then outstanding in the case of a partial prepayment,
or such lesser principal amount of the Notes of such Series as shall then be outstanding,
at 100% of the principal amount so prepaid, plus interest thereon to the
prepayment date and the Make-Whole Amount determined for the prepayment date
with respect to such principal amount.&#160;
The Company will give each holder of Notes of such Series written notice
of each optional prepayment under this Section 8.2 not less than 5 Business
Days and not more than 60 days prior to the date (which shall be a Business
Day) fixed for such prepayment.&#160; Each
such notice shall specify such date, the Series of Notes to be prepaid, the
aggregate principal amount of such Notes to be prepaid on such date, the
principal amount of each Note of such Series held by the registered holder to
be prepaid (determined in accordance with Section 8.3), and the interest to be
paid on the prepayment date with respect to such principal amount being
prepaid.</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">25<a name="PB_25_120137_2639"></a></font></p>

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<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:.5in;"><b><font size="3" face="Times New Roman" style="font-size:12.0pt;font-weight:bold;">8.3&#160;&#160;&#160;&#160;&#160;&#160; Allocation of Partial Prepayments.</font></b></p>

<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:.5in;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">&nbsp;</font></b></p>

<p style="margin:0in 0in .0001pt;text-align:justify;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">In
the case of each partial prepayment of the Notes of each Series under Section
8.1(b) or Section 8.2, the principal amount prepaid shall be allocated among
the Notes of such Series at the time outstanding in proportion, as nearly as
practicable, to the respective unpaid principal amounts thereof not theretofore
prepaid.</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:.5in;"><b><font size="3" face="Times New Roman" style="font-size:12.0pt;font-weight:bold;">8.4&#160;&#160;&#160;&#160;&#160;&#160; Maturity; Surrender, etc.</font></b></p>

<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:.5in;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">&nbsp;</font></b></p>

<p style="margin:0in 0in .0001pt;text-align:justify;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">In
the case of each prepayment of Notes pursuant to this Section 8, the principal
amount of each Note to be prepaid shall mature and become due and payable on
the date fixed for such prepayment (which shall be a Business Day), together
with interest on such principal amount accrued to such date and the applicable
Make-Whole Amount, if any.&#160; From and
after such date, unless the Company shall fail to pay such principal amount
when so due and payable, together with the interest and Make-Whole Amount, if
any, as aforesaid, interest on such principal amount shall cease to
accrue.&#160; Any Note paid or prepaid in full
shall be surrendered to the Company and cancelled and shall not be reissued,
and no Note shall be issued in lieu of any prepaid principal amount of any
Note.</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:.5in;"><b><font size="3" face="Times New Roman" style="font-size:12.0pt;font-weight:bold;">8.5&#160;&#160;&#160;&#160;&#160;&#160; Purchase of Notes.</font></b></p>

<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:.5in;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">&nbsp;</font></b></p>

<p style="margin:0in 0in .0001pt;text-align:justify;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">The
Company will not, and will not permit any Affiliate to, purchase, redeem,
prepay or otherwise acquire, directly or indirectly, any of the outstanding
Notes of any Series except (i) upon the payment or prepayment of the Notes of
such Series in accordance with the terms of this Agreement and the Notes of
such Series, or (ii) pursuant to a written offer to purchase any outstanding
Notes of such Series made by the Company or an Affiliate pro rata to the holders
of all Notes of such Series at the time outstanding upon the same terms and
conditions.&#160; The Company will promptly
cancel all Notes acquired by it or any Affiliate pursuant to any payment,
prepayment or purchase of Notes pursuant to any provision of this Agreement,
and no Notes may be issued in substitution or exchange for any such Notes.</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:.5in;"><b><font size="3" face="Times New Roman" style="font-size:12.0pt;font-weight:bold;">8.6&#160;&#160;&#160;&#160;&#160;&#160; Make-Whole Amount.</font></b></p>

<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:.5in;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">&nbsp;</font></b></p>

<p style="margin:0in 0in .0001pt;text-align:justify;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">The
term &#147;<b>Make-Whole Amount</b>&#148; means,
with respect to any Note, an amount equal to the excess, if any, of the
Discounted Value of the Remaining Scheduled Payments with respect to the Called
Principal of such Note over the amount of such Called Principal; <u>provided</u> that the Make-Whole
Amount may in no event be less than zero.&#160;
For the purposes of determining the Make-Whole Amount, the following terms
have the following meanings:</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:37.05pt;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">&#147;<b>Called Principal</b>&#148;
means, with respect to any Note, the principal of such Note that is to be
prepaid pursuant to Section 8.2 or has become or is declared to be immediately
due and payable pursuant to Section 12.1, as the context requires.</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">26<a name="PB_26_120137_2794"></a></font></p>

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<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:37.05pt;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">&#147;<b>Discounted Value</b>&#148;
means, with respect to the Called Principal of any Note, the amount obtained by
discounting all Remaining Scheduled Payments with respect to such Called
Principal from their respective scheduled due dates to the Settlement Date with
respect to such Called Principal, in accordance with accepted financial
practice and at a discount factor (applied on the same periodic basis as that
on which interest on the Notes is payable) equal to the Reinvestment Yield with
respect to such Called Principal.</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:37.05pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:37.05pt;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">&#147;<b>Reinvestment Yield</b>&#148;
means, with respect to the Called Principal of any Note, 0.50% over the yield
to maturity implied by (i) the yields reported, as of 10:00 a.m. (New York City
local time) on the Business Day next preceding the Settlement Date with respect
to such Called Principal, for actively traded U.S. Treasury securities having a
maturity equal to the Remaining Average Life of such Called Principal as of
such Settlement Date on the display designated as &#147;Page PX1&#148; on Bloomberg
Financial Markets (&#147;<b>Bloomberg</b>&#148;)
(or, if Bloomberg shall cease to report such yields on Page PX1 or shall cease
to be PIM&#146;s customary source of information for calculating make-whole amounts
on privately placed notes, then such source as is then PIM&#146;s customary source
of such information), or if such yields shall not be reported as of such time
or the yields reported as of such time shall not be ascertainable, (ii) the
Treasury Constant Maturity Series yields reported, for the latest day for which
such yields shall have been so reported as of the second Business Day next
preceding the Settlement Date with respect to such Called Principal, in Federal
Reserve Statistical Release H.15 (519) (or any comparable successor
publication) for actively traded U.S. Treasury securities having a constant
maturity equal to the Remaining Average Life of such Called Principal as of
such Settlement Date.&#160; Such implied yield
shall be determined, if necessary, by (a) converting U.S. Treasury bill
quotations to bond-equivalent yields in accordance with accepted financial
practice, and (b) interpolating linearly between (1) the actively traded U.S.
Treasury security with the maturity closest to and greater than the Remaining
Average Life of such Called Principal, and (2) the actively traded U.S.
Treasury security with the maturity closest to and less than the Remaining
Average Life of such Called Principal.&#160;
The Reinvestment Yield shall be rounded to the number of decimal places
as appears in the interest rate of the applicable Note.</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:37.05pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:37.05pt;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">&#147;<b>Remaining Average
Life</b>&#148;&#160; means, with respect to
any Called Principal, the number of years (calculated to the nearest
one-twelfth year) obtained by dividing (i) such Called Principal into (ii) the
sum of the products obtained by multiplying (a) the principal component of each
Remaining Scheduled Payment with respect to such Called Principal by (b) the
number of years (calculated to the nearest one-twelfth year) that will elapse
between the Settlement Date with respect to such Called Principal and the
scheduled due date of such Remaining Scheduled Payment.</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:37.05pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:37.05pt;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">&#147;<b>Remaining Scheduled
Payments</b>&#148; means, with respect to the Called Principal of any Note,
all payments of such Called Principal and interest thereon that would be due
after the Settlement Date with respect to such Called Principal if no payment
of such Called Principal were made prior to its scheduled due date; <u>provided</u> that if such Settlement
Date is not a date on which interest payments are due to be made under the
terms of the Notes, then the amount of the next succeeding scheduled interest
payment will be reduced by the amount of interest accrued to such Settlement
Date and required to be paid on such Settlement Date pursuant to Section 8.2 or
Section 12.1.</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">27<a name="PB_27_120137_8299"></a></font></p>

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<div style="font-family:Times New Roman;">

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:37.05pt;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">&#147;<b>Settlement Date</b>&#148;
means, with respect to the Called Principal of any Note, the date on which such
Called Principal is to be prepaid pursuant to Section 8.2, or has become or is
declared to be immediately due and payable pursuant to Section 12.1, as the
context requires.</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:37.05pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="font-size:12.0pt;font-weight:bold;margin:0in 0in .0001pt .5in;page-break-after:avoid;text-align:justify;text-indent:-.5in;"><b><font size="3" face="Times New Roman" style="font-size:12.0pt;">9</font></b><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>AFFIRMATIVE
COVENANTS</p>

<p style="font-weight:bold;margin:0in 0in .0001pt .5in;page-break-after:avoid;text-align:justify;text-indent:-.5in;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></b></p>

<p style="margin:0in 0in .0001pt;text-align:justify;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">The
Company covenants that during the Issuance Period and for so long thereafter as
any of the Notes are outstanding or any amounts owing under the Transaction
Documents remain unpaid:</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="font-size:12.0pt;margin:0in 0in .0001pt;text-align:justify;text-indent:.5in;"><b><font size="3" face="Times New Roman"><font style="font-size:12.0pt;font-weight:bold;">9.1&#160;&#160;&#160;&#160;&#160;&#160; </font>Compliance with Law.</font></b>&#160; (a)&#160; Without limiting Section&nbsp;10.13,
the Company will, and will cause each of its Subsidiaries to, comply with all
laws, ordinances or governmental rules or regulations to which each of them is
subject, including, without limitation, ERISA, the USA Patriot Act and
Environmental Laws, and will obtain and maintain in effect all licenses,
certificates, permits, franchises and other governmental authorizations
necessary to the ownership of their respective Properties or to the conduct of
their respective businesses, in each case to the extent necessary to ensure
that non-compliance with such laws, ordinances or governmental rules or
regulations or failures to obtain or maintain in effect such licenses, certificates,
permits, franchises and other governmental authorizations could not,
individually or in the aggregate, reasonably be expected to have a Material
Adverse Effect.</p>

<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:37.05pt;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">(b)&#160; Without
limiting the agreements set forth in Section 9.1(a) above, for each of its
owned Properties, respectively, the Company will, and will cause each of its
Subsidiaries to, require that each tenant and subtenant, if any, of any of the
Properties or any part thereof, at all times, do the following to the extent
the failure to do so, individually or in the aggregate, could reasonably be
expected to have a Material Adverse Effect:&#160;
(i) comply in all material respects with all applicable Environmental
Laws; (ii) obtain and maintain in full force and effect all material
governmental approvals required by any applicable Environmental Law for
operations at each of the Properties; and (iii) cause to be cured any material
violation by it or at any of the Properties of applicable Environmental Laws.</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:37.05pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="font-size:12.0pt;margin:0in 0in .0001pt;text-align:justify;text-indent:.5in;"><b><font size="3" face="Times New Roman" style="font-size:12.0pt;font-weight:bold;">9.2&#160;&#160;&#160;&#160;&#160;&#160; Insurance.</font></b>&#160; The Company will, and will cause each of its
Subsidiaries to, maintain and cause their respective tenants to maintain, with
financially sound and reputable insurers, insurance with respect to their
respective properties and businesses against such casualties and contingencies,
of such types, on such terms and in such amounts (including deductibles,
co-insurance and self-insurance, if adequate reserves are maintained with
respect thereto) as is customary in the case of entities of established
reputations engaged in the same or a similar business and similarly situated.</p>

<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="font-size:12.0pt;margin:0in 0in .0001pt;text-align:justify;text-indent:.5in;"><b><font size="3" face="Times New Roman" style="font-size:12.0pt;font-weight:bold;">9.3&#160;&#160;&#160;&#160;&#160;&#160; Maintenance of Properties.</font></b>&#160; The Company will, and will cause each of its
Subsidiaries to, maintain and keep, or cause to be maintained and kept
(including, without limitation, by their respective tenants), their respective
Properties in good repair, working order and condition (other than ordinary
wear and tear), so that the business carried on in connection therewith may be
properly conducted at all times, <u>provided</u> that this Section shall not
prevent the Company or any Subsidiary from discontinuing the operation and the
maintenance of any of its Properties if such discontinuance is desirable in the
conduct of its business and the Company has concluded that such discontinuance
could not, individually or in the aggregate, reasonably be expected to have a
Material Adverse Effect.</p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">28<a name="PB_28_120137_8247"></a></font></p>

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<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="font-size:12.0pt;margin:0in 0in .0001pt;text-align:justify;text-indent:.5in;"><b><font size="3" face="Times New Roman" style="font-size:12.0pt;font-weight:bold;">9.4&#160;&#160;&#160;&#160;&#160;&#160; Payment of Taxes and Claims.</font></b>&#160; The Company and Credit Parties will cause
each of their respective tenants to duly pay and discharge, all taxes, rates,
assessments, fees, and governmental charges upon or against it or its Property
relating to such Property, that individually or collectively would materially
impair the value of such Property, and in each case before the same become
delinquent and before penalties accrue thereon, unless and to the extent that
the same are being contested in good faith and by appropriate proceedings which
prevent enforcement of the matter under contest and adequate reserves are
provided therefor.</p>

<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:0in;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">The Company will, and will cause each of its Subsidiaries to, file all
tax returns required to be filed in any jurisdiction and to pay and discharge
all taxes shown to be due and payable on such returns and all other taxes,
assessments, governmental charges, or levies imposed on them or any of their
Properties, assets, income or franchises, to the extent such taxes and
assessments have become due and payable and before they have become delinquent
and all claims for which sums have become due and payable that have or might
become a Lien on Properties or assets of the Company or any Subsidiary, <u>provided</u>
that neither the Company nor any Subsidiary need pay any such tax or assessment
or claims if (i)&nbsp;the amount, applicability or validity thereof is
contested by the Company or such Subsidiary on a timely basis in good faith and
in appropriate proceedings, and the Company or a Subsidiary has established
adequate reserves therefor in accordance with GAAP on the books of the Company
or such Subsidiary, or (ii)&nbsp;the nonpayment of all such taxes, assessments
and claims in the aggregate could not reasonably be expected to have a Material
Adverse Effect.</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="font-size:12.0pt;margin:0in 0in .0001pt;text-align:justify;text-indent:.5in;"><b><font size="3" face="Times New Roman" style="font-size:12.0pt;font-weight:bold;">9.5&#160;&#160;&#160;&#160;&#160;&#160; Maintenance of Existence, Etc.</font></b>&#160; Subject to Section 10.3, the Company will at
all times preserve and keep in full force and effect its corporate or similar
existence and the corporate or similar existence of each of its Subsidiaries
(unless merged into the Company or a Wholly-Owned Subsidiary) and all rights
and franchises of the Company and its Subsidiaries unless, in the good faith
judgment of the Company, the termination of or failure to preserve and keep in
full force and effect such corporate existence, right or franchise could not,
individually or in the aggregate, have a Material Adverse Effect.</p>

<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="font-size:12.0pt;margin:0in 0in .0001pt;text-align:justify;text-indent:.5in;"><b><font size="3" face="Times New Roman" style="font-size:12.0pt;font-weight:bold;">9.6&#160;&#160;&#160;&#160;&#160;&#160; Books and Records.</font></b>&#160; The Company will, and will cause each of its
Subsidiaries to, maintain proper books of record and account in conformity with
GAAP and all applicable requirements of any Governmental Authority having legal
or regulatory jurisdiction over the Company or such Subsidiary, as the case may
be.</p>

<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="font-size:12.0pt;margin:0in 0in .0001pt;text-align:justify;text-indent:.5in;"><b><font size="3" face="Times New Roman" style="font-size:12.0pt;font-weight:bold;">9.7&#160;&#160;&#160;&#160;&#160;&#160; Maintenance of REIT Status.</font></b>&#160; The Company will, at all times, conduct its
affairs and the affairs of its Subsidiaries in a manner so as to continue to
qualify as a REIT and elect to be treated as a REIT under all applicable laws,
rules and regulations.</p>

<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="font-size:12.0pt;margin:0in 0in .0001pt;text-align:justify;text-indent:.5in;"><b><font size="3" face="Times New Roman" style="font-size:12.0pt;font-weight:bold;">9.8&#160;&#160;&#160;&#160;&#160;&#160; Listing of Common Stock; Filing of
Reports.</font></b>&#160; The
Company will (i) at all times cause its common stock to be duly listed on the
New York Stock Exchange, the American Stock Exchange or the National
Association of Securities Dealers Automated Quotation or other national stock
exchange, and (ii) timely file all reports required to be filed by it with the
New York Stock Exchange, the American Stock Exchange or the National
Association of Securities Dealers Automated Quotation and the Securities and
Exchange Commission.</p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">29<a name="PB_29_120219_9862"></a></font></p>

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<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="font-size:12.0pt;margin:0in 0in .0001pt;text-align:justify;text-indent:.5in;"><b><font size="3" face="Times New Roman" style="font-size:12.0pt;font-weight:bold;">9.9&#160;&#160;&#160;&#160;&#160;&#160; Additional Guarantors.</font></b>&#160; Concurrent with any Person becoming a
guarantor or other obligor under the Credit Agreement or any other Principal
Credit Facility, the Company shall cause such Person to execute and deliver a
Joinder to Multiparty Guaranty, together with such other instruments,
documents, certificates, and opinions reasonably required by the Required
Holders in connection therewith.</p>

<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="font-size:12.0pt;margin:0in 0in .0001pt;text-align:justify;text-indent:.5in;"><b><font size="3" face="Times New Roman" style="font-size:12.0pt;font-weight:bold;">9.10&#160;&#160;&#160;&#160; Borrowing Base-Related Provisions.</font></b>&#160; Upon not less than 10 Business Days&#146; prior
written notice from the Company to the holders of Notes, the Company may
designate that a Property be added (subject to the other requirements for a
Property qualifying as an Eligible Property) or deleted as an Eligible
Property.&#160; Such notice shall be
accompanied by a Borrowing Base Certificate setting forth the components of the
Borrowing Base as of the addition or deletion of the designated Property as an
Eligible Property, and (x) with respect to an addition, the certificate
required above, and (y) with respect to a deletion, the Company&#146;s certification
in such detail as reasonably required by the Required Holders that such
deletion shall not (A) cause the Eligible Properties in the aggregate to
violate the Borrowing Base Requirements, (B) cause a Default, or (C) cause or
result in the Company failing to comply with any of the financial covenants
contained herein.&#160; Each addition shall be
an Eligible Property in a minimum amount equal to $5,000,000 Borrowing Base
Value, or shall be comprised of more than one qualifying Eligible Properties
that in the aggregate have a minimum amount equal to $5,000,000 Borrowing Base
Value, and all such additions shall be subject to approval by the Required
Holders.</p>

<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">Notwithstanding
anything contained in this Agreement to the contrary, the Required Holders in
their reasonable discretion may (a) at the Company&#146;s request, add a Property as
an Eligible Property despite the failure of such Property to otherwise qualify
as an Eligible Property, and (b) upon five (5) Business Days&#146; prior written
notice to the Company, designate that a Property is no longer an Eligible
Property upon their determination that such Property ceases to meet the
criteria set forth in the definition of Eligible Property, <u>provided</u>  <u>however</u>,
that if during such five (5) Business Day Period the Company can satisfy those
requirements deemed unsatisfied by the Required Holders, such Property shall
remain an Eligible Property.</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:0in;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">Furthermore, if no Default exists at the time of any deletion of a
Property from qualifying as an Eligible Property, any Material Subsidiary which
owned such Property, but that does not otherwise own any other Eligible
Property, shall be released from its obligations under the Multiparty Guaranty
if it is concurrently released from its obligations under the corresponding
guaranty in respect of the Credit Agreement and any and all other Principal
Credit Facilities.</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="font-size:12.0pt;margin:0in 0in .0001pt;text-align:justify;text-indent:.5in;"><b><font size="3" face="Times New Roman" style="font-size:12.0pt;font-weight:bold;">9.11&#160;&#160;&#160;&#160; Information Required by Rule 144A.</font></b>&#160; Upon the request of the holder of any Note,
the Company will promptly provide to such holder, and to any Qualified
Institutional Buyer designated by such holder, such financial and other
information as such holder may reasonably determine to be necessary in order to
permit compliance with the information requirements of Rule 144A under the
Securities Act in connection with the resale of Notes, except at such times as
the Company is subject to the reporting requirements of Section 13 or 15(d) of
the Exchange Act.</p>

<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="font-size:12.0pt;font-weight:bold;margin:0in 0in .0001pt .5in;page-break-after:avoid;text-align:justify;text-indent:-.5in;"><b><font size="3" face="Times New Roman" style="font-size:12.0pt;">10</font></b><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>NEGATIVE
COVENANTS.</p>

<p style="font-weight:bold;margin:0in 0in .0001pt .5in;page-break-after:avoid;text-align:justify;text-indent:-.5in;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></b></p>

<p style="margin:0in 0in .0001pt;text-align:justify;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">The
Company covenants that, during the Issuance Period and for so long thereafter
as any of the Notes are outstanding or any amounts owing under the Transaction
Documents remain unpaid:</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">30<a name="PB_30_120219_9111"></a></font></p>

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<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="font-size:12.0pt;margin:0in 0in .0001pt;text-align:justify;text-indent:.5in;"><b><font size="3" face="Times New Roman" style="font-size:12.0pt;font-weight:bold;">10.1&#160;&#160;&#160;&#160; Liens, Etc.</font></b>&#160; The Company will not, nor shall it permit any
Subsidiary to, create, incur or permit to exist any Lien of any kind on any
Property owned by any such Person; <u>provided</u>, <u>however</u>, that the
foregoing shall not apply to nor operate to prevent any Permitted Liens.&#160; Without limitation of the immediately
preceding sentence, the Company will not permit any Principal Credit Facility
(including the Credit Agreement) to be secured by any consensual Lien unless
the Notes are simultaneously secured pursuant to terms and provisions,
including an intercreditor agreement, satisfactory to the Required Holders.</p>

<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="font-size:12.0pt;margin:0in 0in .0001pt;text-align:justify;text-indent:.5in;"><b><font size="3" face="Times New Roman" style="font-size:12.0pt;font-weight:bold;">10.2&#160;&#160;&#160;&#160; Investments, Acquisitions, Loans and
Advances.</font></b>&#160; The
Company will not, nor will it permit any Subsidiary to, directly or indirectly,
make, retain or have outstanding any investments (consisting of loans,
advances, capital contributions or investments in debt or equity securities) or
acquire all or any substantial part of the assets or business of any other
Person or division thereof; <u>provided</u>, <u>however</u>, that the foregoing
shall not apply to nor operate to prevent:</p>

<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:1.0in;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">(a)&#160;&#160;&#160;&#160;&#160;&#160;&#160; investments in direct obligations of the
United States of America or any agency or instrumentality thereof whose
obligations constitute full faith and credit obligations of the United States
of America, <u>provided</u> that any such obligations shall mature within one
year of the date of issuance thereof;</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:1.0in;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">(b)&#160;&#160;&#160;&#160;&#160;&#160;&#160; investments in commercial paper rated at
least P-1 by Moody&#146;s and at least A-1 by S&amp;P maturing within one year of
the date of issuance thereof;</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:1.0in;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">(c)&#160;&#160;&#160;&#160;&#160;&#160;&#160; investments in certificates of deposit
issued by any Lender (as defined in the Credit Agreement) or by any United
States commercial bank having capital and surplus of not less than $100,000,000
which have a maturity of one year or less;</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:1.0in;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">(d)&#160;&#160;&#160;&#160;&#160;&#160;&#160; investments in repurchase obligations
with a term of not more than 7 days for underlying securities of the types
described in subsection (a) above entered into with any bank meeting the
qualifications specified in subsection (c) above, <u>provided</u> all such
agreements require physical delivery of the securities securing such repurchase
agreement, except those delivered through the Federal Reserve Book Entry
System;</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:1.0in;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">(e)&#160;&#160;&#160;&#160;&#160;&#160;&#160; investments in money market funds that
invest solely, and which are restricted by their respective charters to invest
solely, in investments of the type described in the immediately preceding
subsections (a), (b), (c), and (d) above;</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:1.0in;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">(f)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; the Company&#146;s investments from time to
time in its Subsidiaries, and investments made from time to time by a
Subsidiary in one or more of its Subsidiaries;</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:1.0in;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">(g)&#160;&#160;&#160;&#160;&#160;&#160;&#160; intercompany advances made from time to
time among the Company and its Subsidiaries in the ordinary course of business
to finance working capital needs;</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:1.0in;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">(h)&#160;&#160;&#160;&#160;&#160;&#160;&#160; investments in Permitted Acquisitions;</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:1.0in;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">(i)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; investments held by the Company and its
Subsidiaries as of the date of this Agreement and disclosed in <u>Schedule 10.2</u>;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">31<a name="PB_31_120219_2270"></a></font></p>

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</div>
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<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:1.0in;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">(j)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; investments in Medical Office Buildings
in an amount not to exceed $50,000,000 in the aggregate at any one time
outstanding;</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:1.0in;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">(k)&#160;&#160;&#160;&#160;&#160;&#160;&#160; investments in real properties that are
not Senior Housing Assets and are not otherwise permitted under this Section
10.2 in an amount not to exceed $10,000,000 in the aggregate at any one time
outstanding;</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:1.0in;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">(l)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; investments in joint ventures in an
amount not to exceed $30,000,000 in the aggregate at any one time outstanding
excluding investments in joint ventures existing as of or prior to the date of
this Agreement and disclosed on <u>Schedule 10.2</u>;</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:1.0in;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">(m)&#160;&#160;&#160;&#160;&#160;&#160; Assets Under Development in an amount not
to exceed $30,000,000 in the aggregate at any one time outstanding excluding
Assets Under Development existing as of or prior to the date of this Agreement
and disclosed on <u>Schedule 10.2</u>;</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:1.0in;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">(n)&#160;&#160;&#160;&#160;&#160;&#160;&#160; investments in Rehabilitation Assets, in
an amount not to exceed $50,000,000 in the aggregate at any one time
outstanding, excluding Rehabilitation Assets existing as of or prior to the
date of this Agreement and disclosed on <u>Schedule 10.2</u>;</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:1.0in;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">(o)&#160;&#160;&#160;&#160;&#160;&#160;&#160; investments in REMICs pertaining to
issues for which the Company is both the issuer and the servicer in an amount
not to exceed $10,000,000 in the aggregate at any one time outstanding
excluding investments in REMICs of the Company existing as of or prior to the
date of this Agreement and disclosed on <u>Schedule 10.2</u>;</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:1.0in;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">(p)&#160;&#160;&#160;&#160;&#160;&#160;&#160; investments in publicly traded debt or
equity instruments issued by companies engaged in the healthcare industry in an
amount not to exceed $30,000,000 in addition to investments in publicly traded
debt or equity instruments held by the Company as of or prior to the date of
this Agreement and disclosed on <u>Schedule 10.2</u>; and</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:1.0in;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">(q)&#160;&#160;&#160;&#160;&#160;&#160;&#160; investments received in connection with
a workout of any obligation owed to the Company or its Subsidiaries.</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:0in;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">Investments of the type described in Sections (j), (k), (l), (m), (n),
(o), (p) and (q) immediately preceding shall at no time exceed $80,000,000 in
the aggregate at any one time outstanding.&#160;
In determining the amount of investments, acquisitions, loans, and
advances permitted under this Section, investments and acquisitions shall
always be taken at the original cost thereof (regardless of any subsequent
appreciation or depreciation therein), and loans and advances shall be taken at
the principal amount thereof then remaining unpaid.</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="font-size:12.0pt;margin:0in 0in .0001pt;text-align:justify;text-indent:.5in;"><b><font size="3" face="Times New Roman" style="font-size:12.0pt;font-weight:bold;">10.3&#160;&#160;&#160;&#160; Mergers, Consolidations and Sales.</font></b>&#160; The Company will not merge or consolidate
with or into, or convey, transfer, lease or otherwise dispose of (whether in
one transaction or a series of transactions) any of its Property (whether now
owned or hereafter acquired) to, or acquire all or substantially all of the
assets of, any Person, or permit any Subsidiary to do so; <u>provided</u>, <u>however</u>,
that the Company may merge or consolidate with another Person, including a
Subsidiary, if (A) the Company is the surviving corporation, (B) the Company
will be in pro forma compliance with all provisions of this Agreement upon and
after such merger or consolidation, and (C) the Company will not engage in any
material line of business substantially different from that engaged in on the
Series A Closing Day and; <u>provided</u>  <u>further</u>, that so long as no
Default or Event of Default exists this Section shall not apply to nor operate
to prevent:</p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">32<a name="PB_32_120219_6952"></a></font></p>

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<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:1.0in;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">(a)&#160;&#160;&#160;&#160;&#160;&#160;&#160; the sale, transfer, lease or other
disposition of Property of the Company and its Subsidiaries to one another in
the ordinary course of its business;</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:1.0in;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">(b)&#160;&#160;&#160;&#160;&#160;&#160;&#160; the merger of any Subsidiary with and
into the Company or any other Subsidiary, <u>provided</u> that, in the case of
any merger involving the Company, the Company is the corporation surviving the
merger;</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:1.0in;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">(c)&#160;&#160;&#160;&#160;&#160;&#160;&#160; the sale, transfer or other disposition
of any tangible personal property that, in the reasonable business judgment of
the Company or its Subsidiary, has become obsolete or worn out, and which is
disposed of in the ordinary course of business; and</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:1.0in;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">(d)&#160;&#160;&#160;&#160;&#160;&#160;&#160; the sale, transfer, lease or other
disposition of Property of the Company or any Subsidiary (including any
disposition of Property as part of a sale and leaseback transaction)
aggregating for the Company and its Subsidiaries not more than $100,000,000
during any fiscal year of the Company; <u>provided</u>, that if such
disposition during such Fiscal Quarter exceeds $5,000,000 and together with any
other dispositions made during the preceding three Fiscal Quarters of the
Company in the aggregate exceed $50,000,000, then for such disposition(s) the
Company shall provide to the holders of Notes covenant calculations for the
covenants contained in Section 10.10, showing that the projected effect of such
disposition(s) have been contemplated and have been projected into the expected
operating results and financial position of the Company for the Fiscal Quarter
in which the disposition occurs, and demonstrating that such disposition(s) are
not reasonably expected to cause a violation of the Section 10.10 covenants
applicable to the Fiscal Quarter.</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="font-size:12.0pt;margin:0in 0in .0001pt;text-align:justify;text-indent:.5in;"><b><font size="3" face="Times New Roman" style="font-size:12.0pt;font-weight:bold;">10.4&#160;&#160;&#160;&#160; Maintenance of Subsidiaries.</font></b>&#160; The Company shall not assign, sell or
transfer, nor shall it permit any Subsidiary to issue, assign, sell or
transfer, any shares of capital stock or other equity interests of a
Subsidiary; <u>provided</u>, <u>however</u>, that the foregoing shall not
operate to prevent (a) Liens on the capital stock or other equity interests of
Subsidiaries granted to a collateral agent for the benefit of the holders from
time to time of the Notes and the Lenders under the Credit Agreement (subject
to compliance with Section 10.1), (b) the issuance, sale, and transfer to any
person of any shares of capital stock of a Subsidiary solely for the purpose of
qualifying, and to the extent legally necessary to qualify, such person as a
director of such Subsidiary, and (c) any assignment, sale or transfer of the
shares of capital stock or other equity interests of a Subsidiary if the
conveyance, transfer, lease or other disposition of all of the assets of such
Subsidiary would be permitted by Sections 10.3(a), (b) or (d) above.</p>

<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="font-size:12.0pt;margin:0in 0in .0001pt;text-align:justify;text-indent:.5in;"><b><font size="3" face="Times New Roman" style="font-size:12.0pt;font-weight:bold;">10.5&#160;&#160;&#160;&#160; No Burdensome Contracts With Affiliates.</font></b>&#160; The Company shall not, nor shall it permit
any Subsidiary to, enter into any contract, agreement or business arrangement
with any of its Affiliates (other than with Wholly-owned Subsidiaries) on terms
and conditions which are less favorable to the Company or such Subsidiary than
would be usual and customary in similar contracts, agreements or business
arrangements between Persons not affiliated with each other.</p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">33<a name="PB_33_120219_9801"></a></font></p>

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<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="font-size:12.0pt;margin:0in 0in .0001pt;text-align:justify;text-indent:.5in;"><b><font size="3" face="Times New Roman" style="font-size:12.0pt;font-weight:bold;">10.6&#160;&#160;&#160;&#160; No Changes in Fiscal Year.</font></b>&#160; The fiscal year of the Company and its
Subsidiaries ends on December 31st of each year; and the Company shall not, nor
shall it permit any Subsidiary to, change its fiscal year from its present
basis.</p>

<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="font-size:12.0pt;margin:0in 0in .0001pt;text-align:justify;text-indent:.5in;"><b><font size="3" face="Times New Roman" style="font-size:12.0pt;font-weight:bold;">10.7&#160;&#160;&#160;&#160; Change in the Nature of Business.</font></b>&#160; The Company will not, nor shall it permit any
Subsidiary to, engage in any business or activity if as a result the general
nature of the business of the Company and its Subsidiaries would be changed in
any material respect from the general nature of the business engaged in by it
as of the Series A Closing Day.&#160; As of
the Series A Closing Day, the general nature of the business of the Company and
its Subsidiaries is primarily the business of the acquisition, financing and ownership
of Senior Housing Assets and other business activities incidental thereto.</p>

<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="font-size:12.0pt;margin:0in 0in .0001pt;text-align:justify;text-indent:.5in;"><b><font size="3" face="Times New Roman" style="font-size:12.0pt;font-weight:bold;">10.8&#160;&#160;&#160;&#160; Use of Proceeds of Notes.</font></b>&#160; The Company will not use the credit extended
under this Agreement for any purpose other than solely the purposes set forth
in, or otherwise contemplated by, Section 5.14 hereof.</p>

<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="font-size:12.0pt;margin:0in 0in .0001pt;text-align:justify;text-indent:.5in;"><b><font size="3" face="Times New Roman" style="font-size:12.0pt;font-weight:bold;">10.9&#160;&#160;&#160;&#160; No Restrictions.</font></b>&#160; Except as provided herein, the Company will
not, nor will it permit any Subsidiary (except for bankruptcy remote
subsidiaries established in connection with (i) any securitization or
participation transaction or with any Permitted Lien, or (ii) any ownership of
fee simple real estate Properties not exceeding $200,000,000 individually or in
the aggregate) to, directly or indirectly create or otherwise cause or suffer
to exist or become effective any consensual encumbrance or restriction of any
kind on the ability of the Company or any Subsidiary to:&#160; (a) pay dividends or make any other
distributions on any Subsidiary&#146;s capital stock or other equity interests owned
by the Company or any other Subsidiary, (b) pay any indebtedness owed to the
Company or any other Subsidiary, (c) make loans or advances to the Company or
any other Subsidiary, (d) transfer any of its Property to the Company or any
other Subsidiary, <u>provided</u>  <u>however</u>, that the foregoing does not
impose any limitation on transfers of property that is subject to a Permitted
Lien, or (e) guarantee the obligations evidenced by the Notes or under this
Agreement and/or grant Liens on its assets to a collateral Agent for the
benefit of the holders from time to time of the Notes and the Lenders under the
Credit Agreement as required by the Transaction Documents.</p>

<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:.5in;"><b><font size="3" face="Times New Roman" style="font-size:12.0pt;font-weight:bold;">10.10&#160;&#160; Financial Covenants.</font></b></p>

<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:.5in;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">&nbsp;</font></b></p>

<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:1.0in;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">(a)&#160;&#160;&#160;&#160;&#160;&#160;&#160; <b>Maximum Total Indebtedness
to Total Asset Value Ratio.</b>&#160;
As of the last day of each Fiscal Quarter of the Company, the Company
shall not permit the ratio of Total Indebtedness to Total Asset Value to be
greater than 0.50 to 1.00.</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:1.0in;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">(b)&#160;&#160;&#160;&#160;&#160;&#160;&#160; <b>Maximum Secured Debt to
Total Asset Value Ratio.</b>&#160; As
of the last day of each Fiscal Quarter of the Company, the Company shall not
permit the ratio of Secured Debt to Total Asset Value to be greater than 0.35
to 1.00.</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:1.0in;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">(c)&#160;&#160;&#160;&#160;&#160;&#160;&#160; <b>Minimum EBITDA to Interest
Expense Ratio.</b>&#160; As of the last
day of each Rolling Period of the Company, the Company shall not permit the
ratio of EBITDA to Interest Expense to be less than 2.50 to 1.00.</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">34<a name="PB_34_120219_2440"></a></font></p>

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<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:1.0in;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">(d)&#160;&#160;&#160;&#160;&#160;&#160;&#160; <b>Minimum EBITDA to Fixed
Charges Ratio.</b>&#160; As of the last
day of each Rolling Period of the Company, the Company shall not permit the
ratio of EBITDA to Fixed Charges to be less than 1.50 to 1.0.</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:1.0in;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">(e)&#160;&#160;&#160;&#160;&#160;&#160;&#160; <b>Maximum Secured Recourse
Debt to Total Asset Value Ratio.</b>&#160;
As of the last day of each Fiscal Quarter of the Company, the Company
shall not permit the ratio of Secured Recourse Debt to Total Asset Value to be
greater than 0.10 to 1.00.</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:1.0in;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">(f)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <b>Maintenance of Tangible
Net Worth.</b>&#160; The Company shall
not permit at any time Tangible Net Worth to be less than the sum of (a)
$368,000,000 <u>plus</u> (b) 80% of the aggregate net proceeds received by the
Company or any of its Subsidiaries after the Series A Closing Day in connection
with any offering of capital stock or other equity interests of the Company or
the Subsidiaries, but only to the extent that such net proceeds are not used to
redeem existing capital stock or other equity interests of the Company or the
Subsidiaries.</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:0in;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">If at any time any of the Credit Agreement, or any agreement related to
the Credit Agreement or any Principal Credit Facility of the Company or any
Subsidiary, includes a tangible net worth or other net worth covenant or other
provision (regardless of how defined) which is more restrictive in any respect
than the covenant provided in the initial sentence of this Section 10.10(f),
then (a) such more restrictive provision shall immediately and automatically be
incorporated by reference in this Agreement as if set forth fully herein, <i>mutatis mutandis</i>, and no such provision may thereafter be
waived, amended or otherwise modified under this Agreement except pursuant to
the provisions of Section 17, and (b) the Company shall promptly, and in any
event within 5 days after entering into any such more restrictive provision, so
advise each holder of a Note in writing.&#160;
Thereafter, upon the request of the Required Holders, the Company and
the Required Holders shall enter into an amendment to this Agreement evidencing
the incorporation of such more restrictive provision, it being agreed that any
failure to make such request or to enter into any such amendment shall in no
way qualify or limit the incorporation by reference described in clause (a) of
the immediately preceding sentence.</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:1.0in;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">(g)&#160;&#160;&#160;&#160;&#160;&#160;&#160; <b>Floating Rate Debt.</b>&#160; On any date, the Company and its Subsidiaries
shall not, on a consolidated basis, have outstanding Indebtedness for Borrowed
Money that is neither at a fixed rate nor hedged pursuant to a derivative
contract greater than 40% of Total Asset Value.</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:1.0in;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">(h)&#160;&#160;&#160;&#160;&#160;&#160;&#160; <b>Minimum TMVUA to Unsecured
Debt.</b>&#160; The Company shall not
permit the ratio of TMVUA, determined for the Rolling Period then or most
recently ended, to Unsecured Debt at any time to be less than 1.65:1.00.</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:1.0in;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">(i)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <b>Minimum Aggregate TMVUA
Real Property NOI to Unsecured Debt Service.</b>&#160; As of the last day of each Rolling Period of
the Company, the Company shall not permit the ratio of Aggregate TMVUA Real
Property NOI to Unsecured Debt Service to be less than 2.25 to 1.00.</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:.5in;"><b><font size="3" face="Times New Roman" style="font-size:12.0pt;font-weight:bold;">10.11&#160;&#160; Borrowing Base Covenants.</font></b></p>

<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:1.0in;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">(a)&#160;&#160;&#160;&#160;&#160;&#160;&#160; <b>Compliance With Borrowing
Base Requirements.</b>&#160; The
Company shall cause the Eligible Properties in the Borrowing Base to at all
times comply with the Borrowing Base Requirements; <u>provided</u> that if the
requirements of clauses (a), (b), (c) or (d) of the definition of Borrowing
Base Requirements are not met, then within 2 Business Days of notice of such
failure either (i) the Company shall have cured such failure, or (ii) for
Borrowing Base purposes the Company shall have lowered the Borrowing Base Value
of those Eligible Properties that contributed to such failure to the point that
such failure no longer exists.</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">35<a name="PB_35_120219_5340"></a></font></p>

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<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:1.0in;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">(b)&#160;&#160;&#160;&#160;&#160;&#160;&#160; <b>Minimum Borrowing Base
Value.</b>&#160; The Company shall at
all times maintain a Borrowing Base Value of not less than $50,000,000.</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:1.0in;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">(c)&#160;&#160;&#160;&#160;&#160;&#160;&#160; <b>Minimum Eligible Property
NOI to Debt Service Ratio.</b>&#160; As
of the last day of each Fiscal Quarter of the Company, the Company shall not
permit the ratio of Eligible Property NOI to the sum of (i) Unsecured Debt
Service with respect to indebtedness that is pari passu in rank to the
indebtedness under the Credit Agreement (or any Principal Credit Facility that
replaces the Credit Agreement), including, without limitation, the Notes, plus
(ii) Credit Facility Debt Service, to be less than 2.25 to 1.0.</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">Notwithstanding
anything to the contrary in this Agreement, if the Credit Agreement no longer
requires the Company to maintain a Borrowing Base, then the Company will have
no obligation to maintain the Borrowing Base or Borrowing Base Requirements
under this Agreement and the provisions of Sections 5.10(b), 9.10(a) and 10.11
hereof, any related obligations to give notices, and any Events of Default
resulting from the breach of any such provisions or obligations to give notices
will have no further force or effect (the &#147;<b>Borrowing Base Release</b>&#148;);
<u>provided</u>, <u>however</u>, that if at any time after any occurrence of
the Borrowing Base Release any of the Credit Agreement, or any agreement
related to the Credit Agreement or any Principal Credit Facility of the Company
or any Subsidiary, includes a borrowing base covenant or other similar
provision (regardless of how defined), then (a) such provision shall
immediately and automatically be incorporated by reference in this Agreement as
if set forth fully herein, <i>mutatis mutandis</i>,
and no such provision may thereafter be waived, amended or otherwise modified
under this Agreement except pursuant to the provisions of Section 17, and (b)
the Company shall promptly, and in any event within 5 days after entering into
any such provision, so advise each holder of a Note in writing.&#160; Thereafter, upon the request of the Required
Holders, the Company and the Required Holders shall enter into an amendment to
this Agreement evidencing the incorporation of such provision, it being agreed
that any failure to make such request or to enter into any such amendment shall
in no way qualify or limit the incorporation by reference described in clause
(a) of the immediately preceding sentence.</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="font-size:12.0pt;margin:0in 0in .0001pt;text-align:justify;text-indent:.5in;"><b><font size="3" face="Times New Roman" style="font-size:12.0pt;font-weight:bold;">10.12&#160;&#160; Redemption of Stock, Etc.</font></b>&#160; The Company will not, and will not permit any
Subsidiary to, redeem, purchase or otherwise acquire, refinance or repay any
preferred stock of the Company or any Subsidiary except (a) with the proceeds
from, or in exchange for, the issuance of capital stock (other than preferred
stock which is mandatorily redeemable, preferred stock which is redeemable at
the election of the holder thereof or preferred stock with respect to which any
holder thereof has a put or similar right to require the Company or any
Subsidiary to purchase, re-purchase or otherwise acquire such preferred stock),
or (b) with funds borrowed or expended (including funds on hand) for such
redemption, purchase, acquisition, refinancing or repayment <u>provided</u>
that (i) such funds are repaid by the issuance of capital stock (other than
preferred stock which is mandatorily redeemable, preferred stock which is
redeemable at the election of the holder thereof or preferred stock with
respect to which any holder thereof has a put or similar right to require the
Company or any Subsidiary to purchase, re-purchase or otherwise acquire such
preferred stock) within three months of each such transaction, and (ii) the
aggregate amount of such funds, prior to their repayment in accordance with the
immediately preceding clause (i), for all such transactions do not exceed
$25,000,000 at any time.</p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">36<a name="PB_36_120219_1065"></a></font></p>

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<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="font-size:12.0pt;margin:0in 0in .0001pt;text-align:justify;text-indent:.5in;"><b><font size="3" face="Times New Roman" style="font-size:12.0pt;font-weight:bold;">10.13&#160;&#160; Terrorism Sanctions Regulations.</font></b>&#160; The Company will not and will not permit any
Subsidiary to (a)&nbsp;become a Person described or designated in the Specially
Designated Nationals and Blocked Persons List of the Office of Foreign Assets
Control or in Section&nbsp;1 of the Anti-Terrorism Order, or (b)&nbsp;engage in
any dealings or transactions with any such Person.</p>

<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="font-size:12.0pt;font-weight:bold;margin:0in 0in .0001pt .5in;page-break-after:avoid;text-align:justify;text-indent:-.5in;"><b><font size="3" face="Times New Roman" style="font-size:12.0pt;">11</font></b><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>EVENTS
OF DEFAULT.</p>

<p style="font-weight:bold;margin:0in 0in .0001pt .5in;page-break-after:avoid;text-align:justify;text-indent:-.5in;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></b></p>

<p style="margin:0in 0in .0001pt;text-align:justify;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">An
&#147;<b>Event of Default</b>&#148; shall exist if
any of the following conditions or events shall occur and be continuing:</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:1.0in;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">(a)&#160;&#160;&#160;&#160;&#160;&#160;&#160; The Company defaults in the payment of
any principal or Make-Whole Amount, if any, on any Note when the same becomes
due and payable, whether at maturity or at a date fixed for prepayment or by
declaration or otherwise; or</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:1.0in;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">(b)&#160;&#160;&#160;&#160;&#160;&#160;&#160; the Company defaults in the payment of
any interest on any Note for more than three Business Days after the same
becomes due and payable; or</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:1.0in;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">(c)&#160;&#160;&#160;&#160;&#160;&#160;&#160; the Company defaults in the performance
of or compliance with any term contained in Sections 9.5, 9.9 or 10; or</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:1.0in;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">(d)&#160;&#160;&#160;&#160;&#160;&#160;&#160; any Credit Party defaults in the
performance of or compliance with any term contained herein (other than those
referred to in paragraphs (a), (b) and (c) of this Section 11) or in any other
Transaction Document and such default is not remedied within 30 days after the
earlier of (i) a Responsible Officer obtaining actual knowledge of such
default, and (ii) the Company receiving written notice of such default from any
holder of a Note (any such written notice to be identified as a &#147;notice of
default&#148; and to refer specifically to this paragraph (d) of Section 11); or</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:1.0in;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">(e)&#160;&#160;&#160;&#160;&#160;&#160;&#160; any representation or warranty made in
writing by or on behalf of any Credit Party or by any officer of any Credit
Party in this Agreement or in any other Transaction Document or in any writing
furnished in connection with the transactions contemplated hereby or thereby
proves to have been false or incorrect in any material respect on the date as
of which made; or</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:1.0in;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">(f)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; (i) the Company or any Subsidiary is in
default (as principal or as guarantor or other surety) in the payment of any
principal of or premium or make-whole amount or interest on any Indebtedness for
Borrowed Money that is outstanding beyond any period of grace provided with
respect thereto, or (ii) the Company or any Subsidiary is in default in the
performance of or compliance with any term of any evidence of any Indebtedness
for Borrowed Money or of any mortgage, indenture or other agreement relating
thereto or any other condition exists, and as a consequence of such default or
condition such Indebtedness for Borrowed Money has become, or has been declared
(or one or more Persons are entitled to declare such Indebtedness for Borrowed
Money to be), due and payable before its </font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">37<a name="PB_37_120219_9995"></a></font></p>

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<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:0in;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">stated maturity or before its stated maturity or before its regularly
scheduled dates of payment, or (iii) as a consequence of the occurrence or
continuation of any event or condition (other than the passage of time or the
right of the holder of Indebtedness for Borrowed Money to convert such
Indebtedness for Borrowed Money into equity interests), (x) the Company or any
Subsidiary has become obligated to purchase or repay Indebtedness for Borrowed
Money before its regular maturity or before its regularly scheduled dates of
payment, or (y) one or more Persons have the right to require the Company or
any Subsidiary so to purchase or repay such Indebtedness for Borrowed Money; <u>provided</u> that the aggregate
amount of all Indebtedness for Borrowed Money to which such a payment default
shall occur and be continuing or such a failure or other event causing or
permitting acceleration (or resale to the Company or any Subsidiary) shall
occur and be continuing exceeds $10,000,000; or</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:1.0in;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">(g)&#160;&#160;&#160;&#160;&#160;&#160;&#160; the Company or any Subsidiary (i) is
generally not paying, or admits in writing its inability to pay, its debts as
they become due, (ii) files, or consents by answer or otherwise to the filing
against it of, a petition for relief or reorganization or arrangement or any
other petition in bankruptcy, for liquidation or to take advantage of any
bankruptcy, insolvency, reorganization, moratorium or other similar law of any
jurisdiction, (iii) makes an assignment for the benefit of its creditors, (iv)
consents to the appointment of a custodian, receiver, trustee or other officer
with similar powers with respect to it or with respect to any substantial part
of its property, (v) is adjudicated as insolvent or to be liquidated, or (vi)
takes corporate action for the purpose of any of the foregoing; or</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:1.0in;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">(h)&#160;&#160;&#160;&#160;&#160;&#160;&#160; a court or Governmental Authority of
competent jurisdiction enters an order appointing, without consent by the Company
or any of the Subsidiaries, a custodian, receiver, trustee or other officer
with similar powers with respect to it or with respect to any substantial part
of its property, or constituting an order for relief or approving a petition
for relief or reorganization or any other petition in bankruptcy or for
liquidation or to take advantage of any bankruptcy or insolvency law of any
jurisdiction, or ordering the dissolution, winding-up or liquidation of the
Company or any of the Subsidiaries, or any such petition shall be filed against
the Company or any of the Subsidiaries and such petition shall not be dismissed
within 60 days; or</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:1.0in;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">(i)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; (a) a final judgment or judgments for
the payment of money aggregating in excess of $10,000,000 are rendered against
one or more of the Company and its Subsidiaries and which judgments are not,
within 30 days after entry thereof, bonded, discharged or stayed pending
appeal, or are not discharged within 30 days after the expiration of such stay;</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:1.0in;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">(j)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; if (i)&nbsp;any Plan shall fail to
satisfy the minimum funding standards of the Pension Funding Rules for any plan
year or part thereof or a waiver of such standards or extension of any
amortization period is sought or granted under the Pension Funding Rules, (ii)
a notice of intent to terminate&nbsp;any Plan shall have been or is reasonably
expected to be filed with the PBGC or the PBGC shall have instituted
proceedings under ERISA section 4042 to terminate or appoint a trustee to
administer any Plan or the PBGC shall have notified any Credit Party or any
ERISA Affiliate that a Plan may become a subject of any such proceedings,
(iii)&nbsp;the aggregate &#147;amount of unfunded benefit liabilities&#148; (within the
meaning of section 4001(a)(18) of ERISA) under all Plans, determined in
accordance with Title IV of ERISA, shall exceed $10,000,000, (iv)&nbsp;any
Credit Party or any ERISA Affiliate shall have incurred or is reasonably </font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">38<a name="PB_38_120219_6763"></a></font></p>

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</div>
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<div style="font-family:Times New Roman;">

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:0in;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">expected to incur any liability pursuant to Title I or IV of ERISA or
the penalty or excise tax provisions of the Code relating to employee benefit
plans, (v)&nbsp;any Credit Party or any ERISA Affiliate withdraws from any
Multiemployer Plan, or (vi)&nbsp;any Credit Party or any Subsidiary establishes
or amends any employee welfare benefit plan that provides post-employment
welfare benefits in a manner that would increase the liability of any Credit
Party or any Subsidiary thereunder; and any such event or events described in
clauses (i) through (vi) above, either individually or together with any other
such event or events, could reasonably be expected to have a Material Adverse
Effect; or</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:1.0in;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">(k)&#160;&#160;&#160;&#160;&#160;&#160;&#160; a Change of Control shall occur; or</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:1.0in;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">(l)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; a default or event of default shall
occur under any Qualified Ground Lease; or</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:1.0in;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">(m)&#160;&#160;&#160;&#160;&#160;&#160; there shall be a determination from the
applicable Governmental Authority from which no appeal can be taken that the
Company&#146;s tax status as a REIT has been lost; or</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:1.0in;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">(n)&#160;&#160;&#160;&#160;&#160;&#160;&#160; the Company at any time hereafter fails
to cause its common stock to be duly listed on the New York Stock Exchange, the
American Stock Exchange or the National Association of Securities Dealers
Automated Quotation; or</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:1.0in;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">(o)&#160;&#160;&#160;&#160;&#160;&#160;&#160; any provision of any Transaction
Document shall for any reason (other than pursuant to the terms thereof) cease
to be valid and binding on or enforceable in any material respect against any
Credit Party party to it, or any such Credit Party shall so state in writing.</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">As used in Section 11(j), the terms &#147;<b>employee benefit plan</b>&#148; and &#147;<b>employee
welfare benefit plan</b>&#148; shall have the respective meanings assigned to
such terms in Section 3 of ERISA.</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="font-size:12.0pt;font-weight:bold;margin:0in 0in .0001pt .5in;page-break-after:avoid;text-align:justify;text-indent:-.5in;"><b><font size="3" face="Times New Roman" style="font-size:12.0pt;">12</font></b><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>REMEDIES
ON DEFAULT, ETC.</p>

<p style="font-weight:bold;margin:0in 0in .0001pt .5in;page-break-after:avoid;text-align:justify;text-indent:-.5in;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></b></p>

<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:.5in;"><b><font size="3" face="Times New Roman" style="font-size:12.0pt;font-weight:bold;">12.1&#160;&#160;&#160;&#160; Acceleration.</font></b></p>

<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:.5in;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">&nbsp;</font></b></p>

<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:1.0in;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">(a)&#160;&#160;&#160;&#160;&#160;&#160;&#160; If an Event of Default with respect to
any Credit Party described in Section 11(g) or (h) (other than an Event of
Default described in clause (i) of Section 11(g) or described in clause (vi) of
Section 11(g) by virtue of the fact that such clause encompasses clause (i) of
Section 11(g)) has occurred, all the Notes then outstanding shall automatically
become immediately due and payable.</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:1.0in;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">(b)&#160;&#160;&#160;&#160;&#160;&#160;&#160; If any Event of Default described in
Section 11(a) or (b) has occurred and is continuing, in addition to any action
that may be taken pursuant to Section 12.1(c), any holder or holders of Notes
at the time outstanding affected by such Event of Default may at any time, at
its or their option, by notice or notices to the Company, declare all the Notes
held by it or them to be immediately due and payable.</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:1.0in;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">(c)&#160;&#160;&#160;&#160;&#160;&#160;&#160; If any other Event of Default has
occurred and is continuing, any holder or holders of a majority in principal
amount of the Notes of any Series at the time outstanding may at any time at
its or their option, by notice or notices to the Company, declare all the Notes
of such Series then outstanding to be immediately due and payable.</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">39<a name="PB_39_120219_158"></a></font></p>

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<div>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">Upon
any Notes becoming due and payable under this Section 12.1, whether
automatically or by declaration, such Notes will forthwith mature and the
entire unpaid principal amount of such Notes, <u>plus</u> (x) all accrued and
unpaid interest thereon (including, but not limited to, interest accrued
thereon at the Default Rate) and (y) the Make-Whole Amount determined in
respect of such principal amount (to the full extent permitted by applicable
law), shall all be immediately due and payable, in each and every case without
presentment, demand, protest or further notice, all of which are hereby
waived.&#160; The Company acknowledges, and
the parties hereto agree, that each holder of a Note has the right to maintain
its investment in the Notes free from prepayment by the Company (except as
herein specifically provided for) and that the provision for payment of a
Make-Whole Amount by the Company in the event that the Notes are prepaid or are
accelerated as a result of an Event of Default, is intended to provide compensation
for the deprivation of such right under such circumstances.</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:.5in;"><b><font size="3" face="Times New Roman" style="font-size:12.0pt;font-weight:bold;">12.2&#160;&#160;&#160;&#160; Other Remedies.</font></b></p>

<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:.5in;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">&nbsp;</font></b></p>

<p style="margin:0in 0in .0001pt;text-align:justify;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">If
any Default or Event of Default has occurred and is continuing, and
irrespective of whether any Notes have become or have been declared immediately
due and payable under Section 12.1, the holder of any Note at the time
outstanding may proceed to protect and enforce the rights of such holder by an
action at law, suit in equity or other appropriate proceeding, whether for the
specific performance of any agreement contained herein or in any Note, or for
an injunction against a violation of any of the terms hereof or thereof, or in
aid of the exercise of any power granted hereby or thereby or by law or
otherwise.</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:.5in;"><b><font size="3" face="Times New Roman" style="font-size:12.0pt;font-weight:bold;">12.3&#160;&#160;&#160;&#160; Rescission.</font></b></p>

<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:.5in;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">&nbsp;</font></b></p>

<p style="margin:0in 0in .0001pt;text-align:justify;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">At
any time after any Notes of any Series have been declared due and payable
pursuant to clause (b) or (c) of Section 12.1, the holders of not less than a
majority in principal amount of the Notes of such Series then outstanding, by
written notice to the Company, may rescind and annul any such declaration and
its consequences if (a) the Company has paid all overdue interest on the Notes
of such Series, all principal of and Make-Whole Amount, if any, on any Notes of
such Series that are due and payable and are unpaid other than by reason of such
declaration, and all interest on such overdue principal and Make-Whole Amount,
if any, and (to the extent permitted by applicable law) any overdue interest in
respect of the Notes of such Series, at the Default Rate, (b) neither the
Company nor any other Person shall have paid any amounts which have become due
solely by reason of such declaration, (c) all Events of Default and Defaults,
other than non-payment of amounts that have become due solely by reason of such
declaration, have been cured or have been waived pursuant to Section 17, and
(d) no judgment or decree has been entered for the payment of any monies due
pursuant hereto or to the Notes.&#160; No
rescission and annulment under this Section 12.3 will extend to or affect any
subsequent Event of Default or Default or impair any right consequent thereon.</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">40<a name="PB_40_120219_5753"></a></font></p>

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</div>
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<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:.5in;"><b><font size="3" face="Times New Roman" style="font-size:12.0pt;font-weight:bold;">12.4&#160;&#160;&#160;&#160; No Waivers or Election of Remedies,
Expenses, etc.</font></b></p>

<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:.5in;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">&nbsp;</font></b></p>

<p style="margin:0in 0in .0001pt;text-align:justify;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">No
course of dealing and no delay on the part of any holder of any Note in
exercising any right, power or remedy shall operate as a waiver thereof or
otherwise prejudice such holder&#146;s rights, powers or remedies.&#160; No right, power or remedy conferred by this
Agreement, any Note or any other Transaction Document upon any holder thereof
shall be exclusive of any other right, power or remedy referred to herein or therein
or now or hereafter available at law, in equity, by statute or otherwise.&#160; Without limiting the obligations of the
Company under Section 15, the Company will pay to the holder of such Note on
demand such further amount as shall be sufficient to cover all costs and
expenses of such holder incurred in any enforcement or collection under this
Section 12, including, without limitation, reasonable attorneys&#146; fees, expenses
and disbursements.</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="font-size:12.0pt;font-weight:bold;margin:0in 0in .0001pt .5in;page-break-after:auto;text-align:justify;text-indent:-.5in;"><b><font size="3" face="Times New Roman" style="font-size:12.0pt;">13</font></b><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>REGISTRATION;
EXCHANGE; SUBSTITUTION OF NOTES.</p>

<p style="font-weight:bold;margin:0in 0in .0001pt .5in;page-break-after:auto;text-align:justify;text-indent:-.5in;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></b></p>

<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:.5in;"><b><font size="3" face="Times New Roman" style="font-size:12.0pt;font-weight:bold;">13.1&#160;&#160;&#160;&#160; Registration of Notes.</font></b></p>

<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:.5in;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">&nbsp;</font></b></p>

<p style="margin:0in 0in .0001pt;text-align:justify;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">The
Company shall keep at its principal executive office a register for the
registration and registration of transfers of Notes.&#160; The name and address of each holder of one or
more Notes, each transfer thereof and the name and address of each transferee
of one or more Notes shall be registered in such register.&#160; Prior to due presentment for registration of
transfer, the Person in whose name any Note shall be registered shall be deemed
and treated as the owner and holder thereof for all purposes hereof, and the
Company shall not be affected by any notice or knowledge to the contrary.&#160; The Company shall give to any holder of a
Note that is an Institutional Investor promptly upon request therefor, a
complete and correct copy of the names and addresses of all registered holders
of Notes.</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:.5in;"><b><font size="3" face="Times New Roman" style="font-size:12.0pt;font-weight:bold;">13.2&#160;&#160;&#160;&#160; Transfer and Exchange of Notes.</font></b></p>

<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:.5in;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">&nbsp;</font></b></p>

<p style="margin:0in 0in .0001pt;text-align:justify;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">Upon
surrender of any Note to the Company at the address and to the attention of the
designated officer (all as specified in Section 18(iii)), for registration of
transfer or exchange (and in the case of a surrender for registration of
transfer accompanied by a written instrument of transfer duly executed by the
registered holder of such Note or such holder&#146;s attorney duly authorized in
writing and accompanied by the relevant name, address and other information for
notices of each transferee of such Note or part thereof), within ten Business
Days thereafter, the Company shall execute and deliver, at the Company&#146;s
expense (except as provided below), one or more replacement Notes (as requested
by the holder thereof) in exchange therefor, in an aggregate principal amount
equal to the unpaid principal amount of the surrendered Note.&#160; Each such replacement Note shall be payable
to such Person as such holder may request and shall be substantially in the
form of the Note so surrendered.&#160; Each
such replacement Note shall be dated and bear interest from the date to which
interest shall have been paid on the surrendered Note or dated the date of the
surrendered Note if no interest shall have been paid thereon.&#160; The Company may require payment of a sum
sufficient to cover any stamp tax or governmental charge imposed in respect of
any such transfer of Notes.&#160; Notes shall
not be transferred in denominations of less than $1,000,000; <u>provided</u> that if necessary to
enable the registration of transfer by a holder of its entire holding of Notes
of a Series, one Note may be in a denomination of less than $1,000,000.&#160; Any transferee, by its acceptance of a Note
registered in its name (or the name of its nominee), shall be deemed to have
made the representation set forth in Section 6.2.</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">41<a name="PB_41_120318_1031"></a></font></p>

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<div style="font-family:Times New Roman;">

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;page-break-after:avoid;text-align:justify;text-indent:.5in;"><b><font size="3" face="Times New Roman" style="font-size:12.0pt;font-weight:bold;">13.3&#160;&#160;&#160;&#160; Replacement
of Notes.</font></b></p>

<p style="margin:0in 0in .0001pt;page-break-after:avoid;text-align:justify;text-indent:.5in;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">&nbsp;</font></b></p>

<p style="margin:0in 0in .0001pt;page-break-after:avoid;text-align:justify;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">Upon receipt by the Company at the address and to the
attention of the designated officer (all as specified in Section 18(iii)) of
evidence reasonably satisfactory to it of the ownership of and the loss, theft,
destruction or mutilation of any Note (which evidence shall be, in the case of
an Institutional Investor, notice from such Institutional Investor of such
ownership and such loss, theft, destruction or mutilation), and</font></p>

<p style="margin:0in 0in .0001pt;page-break-after:avoid;text-align:justify;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:1.0in;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">(a)&#160;&#160;&#160;&#160;&#160;&#160;&#160; in the case of loss, theft or
destruction, of indemnity reasonably satisfactory to it (<u>provided</u> that if the holder of
such Note is, or is a nominee for, an original Purchaser or another holder of a
Note with a minimum net worth of at least $5,000,000 or a Qualified
Institutional Buyer, such Person&#146;s own unsecured agreement of indemnity shall
be deemed to be satisfactory), or</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:1.0in;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">(b)&#160;&#160;&#160;&#160;&#160;&#160;&#160; in the case of mutilation, upon
surrender and cancellation thereof,</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">within ten Business Days thereafter, the
Company at its own expense shall execute and deliver, in lieu thereof, a
replacement Note, dated and bearing interest from the date to which interest
shall have been paid on such lost, stolen, destroyed or mutilated Note or dated
the date of such lost, stolen, destroyed or mutilated Note if no interest shall
have been paid thereon; provided, that in no event shall the Company be
required to pay any interest or principal with respect to a replacement Note if
such amounts have previously been paid with respect to the original Note.</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="font-size:12.0pt;font-weight:bold;margin:0in 0in .0001pt .5in;page-break-after:avoid;text-align:justify;text-indent:-.5in;"><b><font size="3" face="Times New Roman" style="font-size:12.0pt;">14</font></b><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>PAYMENTS
ON NOTES.</p>

<p style="font-weight:bold;margin:0in 0in .0001pt .5in;page-break-after:avoid;text-align:justify;text-indent:-.5in;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></b></p>

<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:.5in;"><b><font size="3" face="Times New Roman" style="font-size:12.0pt;font-weight:bold;">14.1&#160;&#160;&#160;&#160; Place of Payment.</font></b></p>

<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:.5in;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">&nbsp;</font></b></p>

<p style="margin:0in 0in .0001pt;text-align:justify;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">Subject
to Section 14.2, payments of principal, Make-Whole Amount, if any, and interest
becoming due and payable on the Notes shall be made in New York, New York at
the principal office of JPMorgan Chase Bank in such jurisdiction.&#160; The holder of a Note may at any time, by
notice to the Company, change the place of payment of the Notes so long as such
place of payment shall be either the principal office of the Company in such
jurisdiction or the principal office of a bank or trust company in such
jurisdiction.</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:.5in;"><b><font size="3" face="Times New Roman" style="font-size:12.0pt;font-weight:bold;">14.2&#160;&#160;&#160;&#160; Home Office Payment.</font></b></p>

<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:.5in;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">&nbsp;</font></b></p>

<p style="margin:0in 0in .0001pt;text-align:justify;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">So
long as a Purchaser or its nominee shall be the holder of any Note, and
notwithstanding anything contained in Section 14.1 or in such Note to the
contrary, the Company will pay all sums becoming due on such Note for
principal, Make-Whole Amount, if any, and interest by the method and at the
address specified for such purpose, in the case of the Series A Notes, on the Purchaser
Schedule Relating to Series A Notes attached hereto as <u>Schedule A</u> and,
in the case of any Shelf Note, on the Purchaser Schedule attached to the
Confirmation of Acceptance with respect to such Note, or by such other method
or at such other address as such Purchaser shall have from time to time
specified to the Company in writing for such purpose, without the presentation
or surrender of such Note or the making of any notation thereon, except that
upon written request of the Company made concurrently with or reasonably
promptly after payment or prepayment in full of any Note, such Purchaser shall
surrender such Note for cancellation, reasonably promptly after any such
request, to the Company at its principal executive office or at </font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">42<a name="PB_42_120318_7990"></a></font></p>

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<div style="font-family:Times New Roman;">

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:0in;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">the place of payment most recently designated by the Company pursuant
to Section 14.1.&#160; Prior to any sale or
other disposition of any Note held by any Purchaser or its nominee such
Purchaser will, at its election, either endorse thereon the amount of principal
paid thereon and the last date to which interest has been paid thereon or
surrender such Note to the Company in exchange for a replacement Note or Notes
pursuant to Section 13.2.&#160; The Company
will afford the benefits of this Section 14.2 to any Institutional Investor
that is the direct or indirect transferee of any Note purchased by any
Purchaser under this Agreement and that has made the same agreement relating to
such Note as each Purchaser has made in this Section 14.2.</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="font-size:12.0pt;font-weight:bold;margin:0in 0in .0001pt .5in;page-break-after:avoid;text-align:justify;text-indent:-.5in;"><b><font size="3" face="Times New Roman" style="font-size:12.0pt;">15</font></b><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>EXPENSES,
ETC.</p>

<p style="font-weight:bold;margin:0in 0in .0001pt .5in;page-break-after:avoid;text-align:justify;text-indent:-.5in;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></b></p>

<p style="margin:0in 0in .0001pt;page-break-after:avoid;text-align:justify;text-indent:.5in;"><b><font size="3" face="Times New Roman" style="font-size:12.0pt;font-weight:bold;">15.1&#160;&#160;&#160;&#160; Transaction
Expenses.</font></b></p>

<p style="margin:0in 0in .0001pt;page-break-after:avoid;text-align:justify;text-indent:.5in;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">&nbsp;</font></b></p>

<p style="margin:0in 0in .0001pt;page-break-after:avoid;text-align:justify;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">Whether or not the transactions contemplated hereby
are consummated, the Company will pay all costs and expenses (including
reasonable attorneys&#146; fees of a special counsel and, if reasonably required by the
Required Holders, local or other counsel) incurred by PIM, the Purchasers or
any holder of a Note in connection with such transactions and in connection
with any amendments, waivers or consents under or in respect of this Agreement,
the Notes or any of the other Transaction Documents (whether or not such
amendment, waiver or consent becomes effective), including, without
limitation:&#160; (a) the costs and expenses
incurred in enforcing or defending (or determining whether or how to enforce or
defend) any rights under this Agreement, the Notes or any of the other
Transaction Documents or in responding to any subpoena or other legal process
or informal investigative demand issued in connection with this Agreement, the
Notes or any of the other Transaction Documents, or by reason of being a holder
of any Note, and (b) the costs and expenses, including financial advisors&#146;
fees, incurred in connection with the insolvency or bankruptcy of the Company,
any Guarantor or any Subsidiary or in connection with any work-out or
restructuring of the transactions contemplated hereby, by the Notes and the
other Transaction Documents.&#160; The Company
will pay, and will save PIM, each Purchaser and each other holder of a Note
harmless from, all claims in respect of any fees, costs or expenses, if any, of
brokers and finders.</font></p>

<p style="margin:0in 0in .0001pt;page-break-after:avoid;text-align:justify;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:.5in;"><b><font size="3" face="Times New Roman" style="font-size:12.0pt;font-weight:bold;">15.2&#160;&#160;&#160;&#160; Survival.</font></b></p>

<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:.5in;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">&nbsp;</font></b></p>

<p style="margin:0in 0in .0001pt;text-align:justify;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">The
obligations of the Company under this Section 15 will survive the payment or
transfer of any Note, the enforcement, amendment or waiver of any provision of
this Agreement or the Notes, and the termination of this Agreement.</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="font-size:12.0pt;font-weight:bold;margin:0in 0in .0001pt .5in;page-break-after:avoid;text-align:justify;text-indent:-.5in;"><b><font size="3" face="Times New Roman" style="font-size:12.0pt;">16</font></b><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>SURVIVAL
OF REPRESENTATIONS AND WARRANTIES; ENTIRE AGREEMENT.</p>

<p style="font-weight:bold;margin:0in 0in .0001pt .5in;page-break-after:avoid;text-align:justify;text-indent:-.5in;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></b></p>

<p style="margin:0in 0in .0001pt;text-align:justify;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">All
representations and warranties contained herein or in any of the other
Transaction Documents shall survive the execution and delivery of this
Agreement, the Notes and the other Transaction Documents, the purchase or
transfer by any Purchaser of any Note or portion thereof or interest therein
and the payment of any Note, and may be relied upon by any subsequent holder of
a Note, regardless of any investigation made at any time by or on behalf of any
Purchaser or any other holder of a Note.&#160;
All statements contained in any certificate or other instrument
delivered by or on behalf of any Credit Party or any Subsidiary pursuant to
this Agreement or any of the other Transaction Documents shall be deemed
representations and </font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">43<a name="PB_43_120318_2846"></a></font></p>

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<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">warranties
of such Credit Party or Subsidiary under this Agreement or such other
Transaction Document.&#160; Subject to the
preceding sentence, this Agreement (including the Multiparty Guaranty), the
Notes and the other Transaction Documents embody the entire agreement and
understanding among PIM, the Purchasers and the Credit Parties and supersede
all prior agreements and understandings relating to the subject matter hereof.</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="font-size:12.0pt;font-weight:bold;margin:0in 0in .0001pt .5in;page-break-after:avoid;text-align:justify;text-indent:-.5in;"><b><font size="3" face="Times New Roman" style="font-size:12.0pt;">17</font></b><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>AMENDMENT
AND WAIVER.</p>

<p style="font-weight:bold;margin:0in 0in .0001pt .5in;page-break-after:avoid;text-align:justify;text-indent:-.5in;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></b></p>

<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:.5in;"><b><font size="3" face="Times New Roman" style="font-size:12.0pt;font-weight:bold;">17.1&#160;&#160;&#160;&#160; Requirements.</font></b></p>

<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:.5in;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">&nbsp;</font></b></p>

<p style="margin:0in 0in .0001pt;text-align:justify;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">This
Agreement, the Notes and the other Transaction Documents may be amended, and
any Credit Party may take any action herein or therein prohibited, or omit to
perform any act herein required to be performed by it, if the Credit Parties
shall obtain the written consent to such amendment, action or omission to act,
of the Required Holder(s) of the Notes of each Series <i>except that</i>, (i) with the written consent
of the holders of all Notes of a particular Series, and if an Event of Default
shall have occurred and be continuing, of the holders of all Notes of all
Series, at the time outstanding (and not without such written consents), the
Notes of such Series may be amended or the provisions thereof waived to change
the maturity thereof, to change or affect the principal thereof, or to change
or affect the rate or time of payment of interest on or any Make-Whole Amount
payable with respect to the Notes of such Series, (ii) without the written
consent of the holder or holders of all Notes at the time outstanding, no
amendment to or waiver of the provisions of this Agreement shall change or
affect the provisions of Section 12 or this Section 17 insofar as such
provisions relate to proportions of the principal amount of the Notes of any
Series, or the rights of any individual holder of Notes, required with respect
to any declaration of Notes to be due and payable or with respect to any
consent, amendment, waiver or declaration, (iii) with the written consent of
PIM (and not without the written consent of PIM) the provisions of Section 2B
may be amended or waived (except insofar as any such amendment or waiver would
affect any rights or obligations with respect to the purchase and sale of Notes
which shall have become Accepted Notes prior to such amendment or waiver), and
(iv) with the written consent of all of the Purchasers which shall have become
obligated to purchase Accepted Notes of any Series (and not without the written
consent of all such Purchasers), any of the provisions of Sections 2B and 4 may
be amended or waived insofar as such amendment or waiver would affect only
rights or obligations with respect to the purchase and sale of the Accepted
Notes of such Series or the terms and provisions of such Accepted Notes.&#160; Each holder of any Note at the time or
thereafter outstanding shall be bound by any consent authorized by this Section
17, whether or not such Note shall have been marked to indicate such consent,
but any Notes issued thereafter may bear a notation referring to any such
consent.</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:.5in;"><b><font size="3" face="Times New Roman"><font style="font-size:12.0pt;font-weight:bold;">17.2&#160;&#160;&#160;&#160; </font>Solicitation of Holders of Notes.</font></b></p>

<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:1.0in;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">(a)&#160;&#160;&#160;&#160;&#160;&#160;&#160; <b>Solicitation</b>.&#160; The Company will provide each holder of the
Notes (irrespective of the amount of Notes then owned by it) with sufficient
information, sufficiently far in advance of the date a decision is required, to
enable such holder to make an informed and considered decision with respect to
any proposed amendment, waiver or consent in respect of any of the provisions
hereof or of the Notes.&#160; The Company will
deliver executed or true and correct copies of each amendment, waiver or
consent effected pursuant to the provisions of this Section 17 to each holder
of outstanding Notes promptly following the date on which it is executed and
delivered by, or receives the consent or approval of, the requisite holders of
Notes.</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">44<a name="PB_44_120318_457"></a></font></p>

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<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:1.0in;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">(b)&#160;&#160;&#160;&#160;&#160;&#160;&#160; <b>Payment</b>.&#160; The Company will not directly or indirectly
pay or cause to be paid any remuneration, whether by way of supplemental or
additional interest, fee or otherwise, or grant any security or provide other
credit support, to any holder of Notes as consideration for or as an inducement
to the entering into by any holder of Notes of any waiver or amendment of any
of the terms and provisions hereof unless such remuneration is concurrently
paid, or security is concurrently granted or other credit support concurrently
provided, on the same terms, ratably to each holder of Notes then outstanding
even if such holder did not consent to such waiver or amendment.</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;page-break-after:avoid;text-align:justify;text-indent:.5in;"><b><font size="3" face="Times New Roman" style="font-size:12.0pt;font-weight:bold;">17.3&#160;&#160;&#160;&#160; Binding Effect. etc.</font></b></p>

<p style="margin:0in 0in .0001pt;page-break-after:avoid;text-align:justify;text-indent:.5in;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">&nbsp;</font></b></p>

<p style="margin:0in 0in .0001pt;page-break-after:avoid;text-align:justify;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">Any amendment or
waiver consented to as provided in this Section 17 applies equally to all
holders of Notes and is binding upon them and upon each future holder of any
Note and upon the Company without regard to whether such Note has been marked
to indicate such amendment or waiver.&#160; No
such amendment or waiver will extend to or affect any obligation, covenant,
agreement, Default or Event of Default not expressly amended or waived or
impair any right consequent thereon.&#160; No
course of dealing between any Credit Party and the holder of any Note nor any
delay in exercising any rights hereunder or under any Note shall operate as a
waiver of any rights of any holder of such Note.&#160; As used herein, the term &#147;this Agreement&#148; and
references thereto shall mean this Agreement as it may from time to time be
amended or supplemented.</font></p>

<p style="margin:0in 0in .0001pt;page-break-after:avoid;text-align:justify;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:.5in;"><b><font size="3" face="Times New Roman" style="font-size:12.0pt;font-weight:bold;">17.4&#160;&#160;&#160;&#160; Notes Held by Company, etc.</font></b></p>

<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:.5in;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">&nbsp;</font></b></p>

<p style="margin:0in 0in .0001pt;text-align:justify;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">Solely
for the purpose of determining whether the holders of the requisite percentage
of the aggregate principal amount of Notes or any Series thereof then
outstanding have approved or consented to any amendment, waiver or consent to
be given under this Agreement or the Notes or any Series thereof, or have
directed the taking of any action provided herein or in the Notes or any Series
thereof to be taken upon the direction of the holders of a specified percentage
of the aggregate principal amount of Notes or any Series thereof then
outstanding, Notes directly or indirectly owned by any Credit Party or any of
its Affiliates shall be deemed not to be outstanding.</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="font-size:12.0pt;font-weight:bold;margin:0in 0in .0001pt .5in;page-break-after:avoid;text-align:justify;text-indent:-.5in;"><b><font size="3" face="Times New Roman" style="font-size:12.0pt;">18</font></b><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>NOTICES.</p>

<p style="font-weight:bold;margin:0in 0in .0001pt .5in;page-break-after:avoid;text-align:justify;text-indent:-.5in;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></b></p>

<p style="margin:0in 0in .0001pt;text-align:justify;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">All
notices and communications provided for hereunder (other than communications
provided for in Section 2) shall be in writing and sent (a) by facsimile if the
sender on the same day sends a confirming copy of such notice by a recognized
overnight delivery service (charges prepaid), or (b) by registered or certified
mail with return receipt requested (postage prepaid), or (c) by a recognized
overnight delivery service (with charges prepaid).&#160; Any such notice must be sent:</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="line-height:normal;margin:0in 0in .0001pt;text-align:justify;text-indent:1.0in;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">(i)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; if to any Series A Purchaser or its
nominee, to such Person at the address specified for such communications in the
Purchaser Schedule Relating to Series A Notes attached hereto as <u>Schedule A</u>
and, in the case of a Purchaser of any Shelf Note or its nominee, to such
Person at the address specified for such communications in the Purchaser
Schedule attached to the Confirmation of Acceptance with respect to such Shelf
Note, or at such other address as such Person or it shall have specified to the
Company in writing;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">45<a name="PB_45_120318_2959"></a></font></p>

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<div style="font-family:Times New Roman;">

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="line-height:normal;margin:0in 0in .0001pt;text-align:justify;text-indent:1.0in;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">(ii)&#160;&#160;&#160;&#160;&#160;&#160;&#160; if to any other holder of any Note, to
such holder at such address as such other holder shall have specified to the
Company in writing; or</font></p>

<p style="line-height:normal;margin:0in 0in .0001pt;text-align:justify;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="line-height:normal;margin:0in 0in .0001pt;text-align:justify;text-indent:1.0in;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">(iii)&#160;&#160;&#160;&#160;&#160;&#160; if to any Credit Party, to such Credit
Party care of the Company, at its address set forth at the beginning hereof to
the attention of the Chief Financial Officer, or at such other address as the
Company, shall have specified to the holder of each Note in writing.</font></p>

<p style="line-height:normal;margin:0in 0in .0001pt;text-align:justify;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">Notices under this Section 18 will be deemed
to have been given and received when delivered at the address so
specified.&#160; Any communication pursuant to
Section 2 shall be made by the method specified for such communication in
Section 2, and shall be effective to create any rights or obligations under
this Agreement only if, in the case of a telephone communication, an Authorized
Officer of the party conveying the information and of the party receiving the
information are parties to the telephone call, and in the case of a facsimile
communication, the communication is signed by an Authorized Officer of the
party conveying the information, addressed to the attention of an Authorized
Officer of the party receiving the information, and in fact received at the
facsimile number that is listed for the party receiving the communication on
the Information Schedule or at such other facsimile number as the party
receiving the information shall have specified in writing to the party sending
such information.</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="font-size:12.0pt;font-weight:bold;margin:0in 0in .0001pt .5in;page-break-after:avoid;text-align:justify;text-indent:-.5in;"><b><font size="3" face="Times New Roman" style="font-size:12.0pt;">19</font></b><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>REPRODUCTION
OF DOCUMENTS.</p>

<p style="font-weight:bold;margin:0in 0in .0001pt .5in;page-break-after:avoid;text-align:justify;text-indent:-.5in;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></b></p>

<p style="margin:0in 0in .0001pt;text-align:justify;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">This
Agreement, and all documents relating hereto, including, without limitation,
(a) consents, waivers and modifications that may hereafter be executed, (b)
documents received by any Purchaser on any Closing Day (except the Notes
themselves), and (c) financial statements, certificates and other information
previously or hereafter furnished to any Purchaser, may be reproduced by such
Purchaser by any photographic, photostatic, microfilm, microcard, miniature
photographic or other similar process and such Purchaser may destroy any
original document so reproduced.&#160; To the
extent permitted by applicable law, any such reproduction shall be admissible
in evidence as the original itself in any judicial or administrative proceeding
(whether or not the original is in existence and whether or not such
reproduction was made by such Purchaser in the regular course of business) and
any enlargement, facsimile or further reproduction of such reproduction shall
likewise be admissible in evidence.&#160; This
Section 19 shall not prohibit any party hereto from contesting any such
reproduction to the same extent that it could contest the original, or from
introducing evidence to demonstrate the inaccuracy of any such reproduction.</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="font-size:12.0pt;font-weight:bold;margin:0in 0in .0001pt .5in;page-break-after:avoid;text-align:justify;text-indent:-.5in;"><b><font size="3" face="Times New Roman" style="font-size:12.0pt;">20</font></b><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>MULTIPARTY
GUARANTY.</p>

<p style="font-weight:bold;margin:0in 0in .0001pt .5in;page-break-after:avoid;text-align:justify;text-indent:-.5in;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></b></p>

<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:.5in;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">The multiparty
guaranty under this Section 20 (as amended or otherwise modified from time to
time, the &#147;<b>Multiparty Guaranty</b>&#148;) is made
jointly and severally by each of the Guarantors in favor of the Purchasers and
their respective successors, assigns and transferees (each of such Persons
being referred to herein as a &#147;<b>Beneficiary</b>&#148;
and collectively, as the &#147;<b>Beneficiaries</b>&#148;).</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">46<a name="PB_46_120318_3821"></a></font></p>

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</div>
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<div>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;page-break-after:avoid;text-align:justify;text-indent:.5in;"><b><font size="3" face="Times New Roman" style="font-size:12.0pt;font-weight:bold;">20.1&#160;&#160;&#160;&#160; Unconditional
Guaranty.</font></b></p>

<p style="margin:0in 0in .0001pt;page-break-after:avoid;text-align:justify;text-indent:.5in;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">&nbsp;</font></b></p>

<p style="margin:0in 0in .0001pt;page-break-after:avoid;text-align:justify;text-indent:1.0in;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">(a)&#160;&#160;&#160;&#160;&#160;&#160;&#160; <b>Unconditional
Guaranty.</b></font></p>

<p style="margin:0in 0in .0001pt;page-break-after:avoid;text-align:justify;text-indent:1.0in;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">&nbsp;</font></b></p>

<p style="color:black;margin:0in 0in .0001pt .5in;page-break-after:avoid;text-align:justify;text-indent:.5in;"><font size="3" color="black" face="Times New Roman" style="font-size:12.0pt;">Each Guarantor hereby unconditionally,
absolutely and irrevocably guarantees to each of the Beneficiaries the prompt
and complete payment when due (whether at stated maturity, by acceleration or
otherwise) and performance of all Guaranteed Obligations.&#160; The term &#147;<b>Guaranteed
Obligations</b>&#148; shall mean all loans, advances, debts, liabilities and
obligations for monetary amounts and otherwise from time to time owing by the
Company, in the Company&#146;s capacity as the issuer of Notes, to the Purchasers in
connection with this Agreement, the Notes and the other Transaction Documents,
whether due or to become due, matured or unmatured, liquidated or unliquidated,
contingent or non-contingent, and all covenants and duties regarding such
amounts, of any kind or nature, present or future, whether or not evidenced by
any note, agreement or instrument, arising under or in respect of this
Agreement, the Notes or the other Transaction Documents (it being understood
that this term includes all principal, interest (including interest that
accrues after the commencement by or against the Company of any action under
bankruptcy, reorganization, compromise, arrangement, insolvency, readjustment
of debt, dissolution or liquidation or similar law, whether now or hereafter in
effect), the Make-Whole Amount, if any, premium or other prepayment
consideration, fees, expenses, costs or other sums (including, without
limitation, all fees and disbursements of any law firm or other external
counsel) chargeable to the Company, in the Company&#146;s capacity as the issuer of
Notes, under this Agreement, the Notes or the other Transaction Documents).</font></p>

<p style="color:black;margin:0in 0in .0001pt .5in;page-break-after:avoid;text-align:justify;text-indent:.5in;"><font size="2" color="black" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:1.0in;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">(b)&#160;&#160;&#160;&#160;&#160;&#160;&#160; <b>Reimbursement of Expenses.</b></font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:1.0in;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">&nbsp;</font></b></p>

<p style="color:black;margin:0in 0in .0001pt .5in;text-align:justify;text-indent:.5in;"><font size="3" color="black" face="Times New Roman" style="font-size:12.0pt;">Each Guarantor also agrees to pay upon demand all costs and expenses
(including, without limitation, all fees and disbursements of any law firm or
other external counsel) incurred by any Beneficiary in enforcing any rights
under this Multiparty Guaranty.</font></p>

<p style="color:black;margin:0in 0in .0001pt .5in;text-align:justify;text-indent:.5in;"><font size="2" color="black" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:1.0in;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">(c)&#160;&#160;&#160;&#160;&#160;&#160;&#160; <b>Guaranteed Obligations
Unaffected.</b></font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:1.0in;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">&nbsp;</font></b></p>

<p style="color:black;margin:0in 0in .0001pt .5in;text-align:justify;text-indent:.5in;"><font size="3" color="black" face="Times New Roman" style="font-size:12.0pt;">No payment or payments made by any other Guarantor or other Credit
Party, or by any other guarantor or other Person, or received or collected by
any of the Beneficiaries from any other Guarantor or other Credit Party or from
any other guarantor or other Person by virtue of any action or proceeding or
any setoff or appropriation or application at any time or from time to time in
reduction of or in payment of the Guaranteed Obligations shall be deemed to
modify, release or otherwise affect the liability of each of the Guarantors
hereunder which shall, notwithstanding any such payments, remain liable for the
Guaranteed Obligations, subject to Section 20.5 below, until the Guaranteed
Obligations are paid in full.</font></p>

<p style="color:black;margin:0in 0in .0001pt .5in;text-align:justify;text-indent:.5in;"><font size="2" color="black" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:1.0in;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">(d)&#160;&#160;&#160;&#160;&#160;&#160;&#160; <b>Joint and Several
Liability.</b></font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:1.0in;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">&nbsp;</font></b></p>

<p style="color:black;margin:0in 0in .0001pt .5in;text-align:justify;text-indent:.5in;"><font size="3" color="black" face="Times New Roman" style="font-size:12.0pt;">All Guarantors and their respective successors and assigns shall be
jointly and severally liable for the payment of the Guaranteed Obligations and
the expenses required to be reimbursed to the holders of the Notes pursuant to
Section 20.1(b), above, notwithstanding any relationship or contract of
co-obligation by or among the Guarantors or their successors and assigns.</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">47<a name="PB_47_120318_3011"></a></font></p>

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<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:1.0in;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">(e)&#160;&#160;&#160;&#160;&#160;&#160;&#160; <b>Enforcement of Guaranteed
Obligations.</b></font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:1.0in;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">&nbsp;</font></b></p>

<p style="color:black;margin:0in 0in .0001pt .5in;text-align:justify;text-indent:.5in;"><font size="3" color="black" face="Times New Roman" style="font-size:12.0pt;">Upon the occurrence and during the continuance of an Event of Default,
then and in any such event all of the Guaranteed Obligations shall
automatically become due and payable (in the case of an Event of Default
described in Section 11(g) or (h)) and all or any part of the Guaranteed
Obligations may, at the option of (i) any holder of any Note (in the case of an
Event of Default described in Section 11(a) or (b)), and (ii) the Required
Holders (in the case of any Event of Default described in Section 11 other than
those described in Section 11(g) or (h)) and without demand, notice or legal
process of any kind, be declared, and immediately shall become, due and
payable.</font></p>

<p style="color:black;margin:0in 0in .0001pt .5in;text-align:justify;text-indent:.5in;"><font size="2" color="black" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:1.0in;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">(f)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <b>Tolling of Statute of
Limitations.</b></font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:1.0in;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">&nbsp;</font></b></p>

<p style="color:black;margin:0in 0in .0001pt .5in;text-align:justify;text-indent:.5in;"><font size="3" color="black" face="Times New Roman" style="font-size:12.0pt;">Each Guarantor agrees that any payment, performance or other act that
tolls any statute of limitations applicable to the obligations, liabilities and
indebtedness of the Company owing to the Beneficiaries under this Agreement, the
Notes or any of the other Transaction Documents shall also toll the statute of
limitations applicable to such Guarantor&#146;s liability under this Multiparty
Guaranty to the extent permitted by law.</font></p>

<p style="color:black;margin:0in 0in .0001pt .5in;text-align:justify;text-indent:.5in;"><font size="2" color="black" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:1.0in;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">(g)&#160;&#160;&#160;&#160;&#160;&#160;&#160; <b>Rights of Contribution.</b></font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:1.0in;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">&nbsp;</font></b></p>

<p style="color:black;margin:0in 0in .0001pt .5in;text-align:justify;text-indent:.5in;"><font size="3" color="black" face="Times New Roman" style="font-size:12.0pt;">The Company and each Guarantor hereby agree that, to the extent that a
Guarantor shall have paid an amount hereunder to any Beneficiary that is
greater than the net value of the benefits received, directly or indirectly, by
such paying Guarantor as a result of the issuance and sale of the Notes, such
paying Guarantor shall be entitled to contribution from the Company or any
Guarantor that has not paid its proportionate share, based on benefits received
as a result of the issuance and sale of the Notes, of the Guaranteed
Obligations. &#160;Any amount payable as a
contribution under this Section 20.1(g) shall be determined as of the date on
which the related payment or distribution is made by the Guarantor seeking
contribution, and each of the Company and the Guarantors acknowledges that the
right to contribution hereunder shall constitute an asset of such Guarantor to
which such contribution is owed.&#160;
Notwithstanding the foregoing, the provisions of this Section 20.1(g)
shall in no respect limit the obligations and liabilities of any Guarantor to
the Beneficiaries hereunder or under any other Transaction Document, and each
Guarantor shall remain liable for the full payment and performance guaranteed
hereunder.&#160; Any indebtedness or other
obligations of the Company or a Guarantor now or hereafter held by or owing to
any Guarantor is hereby subordinated in time and right of payment to all
indebtedness or other obligations of the Company and the Guarantors to any or
all of the Beneficiaries under the Notes, this Agreement or any other
Transaction Document.</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">48<a name="PB_48_120318_9487"></a></font></p>

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<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:.5in;"><b><font size="3" face="Times New Roman" style="font-size:12.0pt;font-weight:bold;">20.2&#160;&#160;&#160;&#160; Subrogation.</font></b></p>

<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:.5in;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">&nbsp;</font></b></p>

<p style="color:black;margin:0in 0in .0001pt;text-align:justify;text-indent:.5in;"><font size="3" color="black" face="Times New Roman" style="font-size:12.0pt;">Notwithstanding any payment or payments made by any Guarantor
hereunder, each Guarantor hereby irrevocably waives, solely with respect to
such payment or payments, any and all rights of subrogation to the rights of
the Beneficiaries against the Company and, except to the extent otherwise
provided in Section 20.1(g), any and all rights of contribution, reimbursement,
assignment, indemnification or implied contract or any similar rights against
the Company, any endorser or other guarantor of all or any part of the
Guaranteed Obligations, in each case until such time as the Guaranteed
Obligations have been paid in full (subject to Section 20.5 below).&#160; If, notwithstanding the foregoing, any amount
shall be paid to any Guarantor on account of such subrogation or other rights
at any time when all of the Guaranteed Obligations shall not have been paid in
full, such amount shall be held by such Guarantor in trust for the Beneficiaries,
segregated from other funds of such Guarantor, and shall, forthwith upon
receipt by such Guarantor, be turned over to each Beneficiary (ratably based on
the principal amount outstanding of Notes held by such Beneficiary at such time
as a percentage of the aggregate principal amount outstanding of Notes held by
all the Beneficiaries at such time) in the exact form received by such
Guarantor (duly endorsed by such Guarantor to such Beneficiary if required), to
be applied against the Guaranteed Obligations, whether matured or unmatured, in
such order as such Beneficiary may determine.</font></p>

<p style="color:black;margin:0in 0in .0001pt;text-align:justify;text-indent:.5in;"><font size="2" color="black" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:.5in;"><b><font size="3" face="Times New Roman" style="font-size:12.0pt;font-weight:bold;">20.3&#160;&#160;&#160;&#160; Amendments, Etc. with Respect to Guaranteed
Obligations.</font></b></p>

<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:.5in;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">&nbsp;</font></b></p>

<p style="color:black;margin:0in 0in .0001pt;text-align:justify;text-indent:.5in;"><font size="3" color="black" face="Times New Roman" style="font-size:12.0pt;">Each Guarantor shall remain obligated hereunder notwithstanding
that:&#160; (a) any demand for payment of any
of the Guaranteed Obligations made by any Beneficiary may be rescinded by such
Beneficiary, and any of the Guaranteed Obligations continued; (b) this
Multiparty Guaranty, the Guaranteed Obligations, or the liability of any other
party upon or for any part of the Guaranteed Obligations, or any collateral
security or guaranty therefor or right of setoff with respect thereto, may,
from time to time, in whole or in part, be renewed, extended, amended,
modified, accelerated, compromised, waived, surrendered or released by any
Beneficiary or such other party; (c) this Agreement, the Notes, the other
Transaction Documents and any other document executed in connection with any of
them may be renewed, extended, amended, modified, supplemented or terminated,
in whole or in part; or (d) any guaranty, collateral or right of setoff at any
time held by any Person for the payment of any of the Guaranteed Obligations
may be sold, exchanged, waived, surrendered or released.&#160; When making any demand hereunder against any
Guarantor, each Beneficiary may, but shall be under no obligation to, make a
similar demand on any other Credit Party or any other Person, and any failure
by such Beneficiary to make any such demand or to collect any payments from any
other Credit Party or any other Person or any release of any such other Credit
Party or Person shall not impair or affect the rights and remedies, express or
implied, or as a matter of law, of such Beneficiary against the
Guarantors.&#160; For the purposes hereof
&#147;demand&#148; shall include the commencement and continuance of any legal
proceedings.</font></p>

<p style="color:black;margin:0in 0in .0001pt;text-align:justify;text-indent:.5in;"><font size="2" color="black" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:.5in;"><b><font size="3" face="Times New Roman" style="font-size:12.0pt;font-weight:bold;">20.4&#160;&#160;&#160;&#160; Guaranty Absolute and Unconditional;
Termination.</font></b></p>

<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:.5in;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">&nbsp;</font></b></p>

<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:1.0in;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">(a)&#160;&#160;&#160;&#160;&#160;&#160;&#160; Each Guarantor waives any and all notice
of the creation, renewal, extension or accrual of any of the Guaranteed
Obligations and notice of or proof of reliance by any Beneficiary upon this
Multiparty Guaranty or acceptance of this Multiparty Guaranty.&#160; This Agreement, the Notes, the other
Transaction Documents and the Guaranteed Obligations in respect of any of them,
shall conclusively be deemed to have been created, contracted for or </font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">49<a name="PB_49_120318_9799"></a></font></p>

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<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:0in;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">incurred in reliance upon this Multiparty Guaranty; and all dealings
between any of the Company or the Guarantors, on the one hand, and any of the
Beneficiaries, on the other, shall likewise conclusively be presumed to have
been had or consummated in reliance upon this Multiparty Guaranty.&#160; Each Guarantor waives diligence, presentment,
protest, demand for payment and notice of default or nonpayment to or upon any
Credit Party or any other guarantor with respect to the Guaranteed
Obligations.&#160; Except as provided in
Section 20.4(b), this Multiparty Guaranty shall be construed as a continuing,
irrevocable, absolute and unconditional guaranty of payment, performance and compliance
when due (and not of collection) and is a primary obligation of each Guarantor
without regard to (a) the validity or enforceability of the provisions of this
Agreement (other than the Multiparty Guaranty), the Notes, the other
Transaction Documents, any of the Guaranteed Obligations or any other guaranty
or right of setoff with respect thereto at any time or from time to time held
by any Beneficiary, (b) any defense, setoff or counterclaim (other than a
defense of payment or performance) which may at any time be available to or be
asserted by any of the Credit Parties against any Beneficiary, or (c) any other
circumstance whatsoever (with or without notice to or knowledge of any Credit
Party or guarantor) which constitutes, or might be construed to constitute, an
equitable or legal discharge of any Credit Party or any other guarantor of the
Guaranteed Obligations, in bankruptcy or in any other instance (other than
payment or performance in full of the Guaranteed Obligations).&#160; Each of the Guarantors hereby agrees that it
has complete and absolute responsibility for keeping itself informed of the
business, operations, properties, assets, condition (financial or otherwise) of
the Company, the other Guarantors, any and all endorsers and any and all guarantors
of the Guaranteed Obligations and of all other circumstances bearing upon the
risk of nonpayment of the obligations evidenced by the Notes or the Guaranteed
Obligations, and each of the Guarantors further agrees that the Beneficiaries
shall have no duty, obligation or responsibility to advise it of any such facts
or other information, whether now known or hereafter ascertained, and each
Guarantor hereby waives any such duty, obligation or responsibility on the part
of the Beneficiaries to disclose such facts or other information to such
Guarantor.</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="color:black;margin:0in 0in .0001pt;text-align:justify;text-indent:.5in;"><font size="3" color="black" face="Times New Roman" style="font-size:12.0pt;">When pursuing its rights and remedies hereunder against any of the
Guarantors, any Beneficiary may, but shall be under no obligation to, pursue
such rights and remedies as it may have against any other Credit Party or any
other Person under a guaranty of the Guaranteed Obligations or any right of
setoff with respect thereto, and any failure by such Beneficiary to pursue such
other rights or remedies or to collect any payments from any such other Credit
Party or Person or to realize upon any such guaranty or to exercise any such
right of setoff, or any release of any such other Credit Party or Person or any
such guaranty or right of setoff, shall not relieve the Guarantors of any
liability hereunder, and shall not impair or affect the rights and remedies,
whether express, implied or available as a matter of law, of each of the
Beneficiaries against the Guarantors.&#160;
This Multiparty Guaranty shall remain in full force and effect until all
Guaranteed Obligations shall have been satisfied by payment or performance in
full, upon the occurrence of which this Multiparty Guaranty shall, subject to
Section 20.5 below, terminate.</font></p>

<p style="color:black;margin:0in 0in .0001pt;text-align:justify;text-indent:.5in;"><font size="2" color="black" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:1.0in;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">(b)&#160;&#160;&#160;&#160;&#160;&#160;&#160; Each Guarantor shall be released and
discharged automatically from its obligations under this Multiparty Guaranty <u>provided</u>
that (i) such Guarantor concurrently is released and discharged from its
obligations as a guarantor under the Credit Agreement and each other Principal
Credit Facility, (ii) no Default or Event of Default exists or would exist
after giving effect to such release and discharge, (iii) no remuneration
(whether by way of supplemental or additional interest, fee or otherwise) or
alternative credit support (whether by </font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">50<a name="PB_50_120318_4015"></a></font></p>

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<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:0in;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">way of another guaranty, collateral security, a letter of credit or
otherwise) is provided to any lender under the Credit Agreement or any other
Principal Credit Facility as compensation for such release of such Guarantor
under the Credit Agreement or such other Principal Credit Facility (<u>provided</u>
that the foregoing shall not apply to facility fees, structuring fees,
arrangement fees or similar up-front fees in connection with the extension or
replacement of the Credit Agreement or any other Principal Credit Facility so
long as the primary purpose of such fees is not compensation for the release of
any Guarantor), and (iv) the Company has delivered an Officer&#146;s Certificate
certifying as to the conditions in each of the immediately preceding clauses
(i), (ii) and (iii) and setting forth the date of effectiveness for such
release and discharge.</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:.5in;"><b><font size="3" face="Times New Roman" style="font-size:12.0pt;font-weight:bold;">20.5&#160;&#160;&#160;&#160; Reinstatement.</font></b></p>

<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:.5in;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">&nbsp;</font></b></p>

<p style="color:black;margin:0in 0in .0001pt;text-align:justify;text-indent:.5in;"><font size="3" color="black" face="Times New Roman" style="font-size:12.0pt;">This Multiparty Guaranty shall continue to be effective, or be
reinstated, as the case may be, if at any time the payment, or any part
thereof, of any of the Guaranteed Obligations is rescinded or otherwise must be
restored or returned by any Beneficiary in connection with the insolvency,
bankruptcy, dissolution, liquidation or reorganization of any Credit Party upon
or as a result of the appointment of a receiver, intervenor or conservator of,
or trustee or similar officer for, any Credit Party or any substantial part of
their respective property or assets, or otherwise, all as though such payments
had not been made.</font></p>

<p style="color:black;margin:0in 0in .0001pt;text-align:justify;text-indent:.5in;"><font size="2" color="black" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:.5in;"><b><font size="3" face="Times New Roman" style="font-size:12.0pt;font-weight:bold;">20.6&#160;&#160;&#160;&#160; Payments.</font></b></p>

<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:.5in;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">&nbsp;</font></b></p>

<p style="color:black;margin:0in 0in .0001pt;text-align:justify;text-indent:36.7pt;"><font size="3" color="black" face="Times New Roman" style="font-size:12.0pt;">Each Guarantor hereby agrees that the
Guaranteed Obligations will be paid to each of the Beneficiaries pursuant to
this Agreement without setoff or counterclaim in immediately available funds at
the location and in the currency or currencies specified by such Beneficiary
pursuant to this Agreement.</font></p>

<p style="color:black;margin:0in 0in .0001pt;text-align:justify;text-indent:36.7pt;"><font size="2" color="black" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;page-break-after:avoid;text-align:justify;text-indent:.5in;"><b><font size="3" face="Times New Roman" style="font-size:12.0pt;font-weight:bold;">20.7&#160;&#160;&#160;&#160; Bound
by Other Provisions.</font></b></p>

<p style="margin:0in 0in .0001pt;page-break-after:avoid;text-align:justify;text-indent:.5in;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">&nbsp;</font></b></p>

<p style="color:black;margin:0in 0in .0001pt;page-break-after:avoid;text-align:justify;text-indent:.5in;"><font size="3" color="black" face="Times New Roman" style="font-size:12.0pt;">Each Guarantor agrees that it is bound by
each covenant set forth in this Agreement and that it shall make each
representation and warranty set forth in this Agreement, in each case to the
extent the applicable provision pertains to a Subsidiary.</font></p>

<p style="color:black;margin:0in 0in .0001pt;page-break-after:avoid;text-align:justify;text-indent:.5in;"><font size="2" color="black" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:.5in;"><b><font size="3" face="Times New Roman" style="font-size:12.0pt;font-weight:bold;">20.8&#160;&#160;&#160;&#160; Additional Guarantors.</font></b></p>

<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:.5in;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">&nbsp;</font></b></p>

<p style="color:black;margin:0in 0in .0001pt;text-align:justify;text-indent:.5in;"><font size="3" color="black" face="Times New Roman" style="font-size:12.0pt;">The initial Guarantors shall be such Persons as are identified as
&#147;Guarantors&#148; on the signature pages hereof.&#160;
From time to time subsequent to the date hereof, additional Persons that
are Subsidiaries or other Affiliates of any Credit Party may become parties
hereto, as additional Guarantors (each an &#147;<b>Additional Guarantor</b>&#148;),
by executing a Joinder to Multiparty Guaranty.&#160;
Upon delivery of any such Joinder to Multiparty Guaranty to each of the
Beneficiaries, notice of which is hereby waived by the Guarantors, each such
Additional Guarantor shall be a Guarantor and shall be as fully a party hereto
in such capacity as if such Additional Guarantor were an original signatory
hereof.&#160; Each Guarantor expressly agrees
that its obligations arising hereunder shall not be affected or diminished by
the addition or release of any other Guarantor hereunder, nor by any election
of the Beneficiaries not to cause any Subsidiary of any Credit Party to become
an Additional Guarantor hereunder.&#160; This
Multiparty Guaranty shall be fully effective as to any Guarantor that is or
becomes a party hereto regardless of whether any other Person becomes or fails
to become or ceases to be a Guarantor hereunder.</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">51<a name="PB_51_120318_2784"></a></font></p>

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<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="font-size:12.0pt;font-weight:bold;margin:0in 0in .0001pt .5in;page-break-after:avoid;text-align:justify;text-indent:-.5in;"><b><font size="3" face="Times New Roman" style="font-size:12.0pt;">21</font></b><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>CONFIDENTIALITY.</p>

<p style="font-weight:bold;margin:0in 0in .0001pt .5in;page-break-after:avoid;text-align:justify;text-indent:-.5in;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></b></p>

<p style="margin:0in 0in .0001pt;text-align:justify;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">For
the purposes of this Section 21, &#147;<b>Confidential Information</b>&#148;
means information delivered to any Purchaser by or on behalf of the Company or
any Subsidiary in connection with the transactions contemplated by or otherwise
pursuant to this Agreement that is proprietary in nature and that was clearly
marked or labeled or otherwise adequately identified when received by such
Purchaser as being confidential information of the Company or such Subsidiary, <u>provided</u>
that such term does not include information that (a) was publicly known or
otherwise known to such Purchaser prior to the time of such disclosure, (b)
subsequently becomes publicly known through no act or omission by such
Purchaser or any person acting on such Purchaser&#146;s behalf, (c) otherwise
becomes known to such Purchaser other than through disclosure by the Company or
any Subsidiary, or (d) constitutes financial statements delivered to such
Purchaser under Section 7.1 that are otherwise publicly available.&#160; Each Purchaser will maintain the
confidentiality of such Confidential Information in accordance with procedures
adopted by such Purchaser in good faith to protect confidential information of
third parties delivered to such Purchaser, <u>provided</u> that such Purchaser
may deliver or disclose Confidential Information to (i) its directors,
officers, employees, agents, attorneys and affiliates (to the extent such
disclosure reasonably relates to the administration of the investment
represented by its Notes), (ii) its financial advisors and other professional
advisors who agree to hold confidential the Confidential Information
substantially in accordance with the terms of this Section 21, (iii) any other
holder of any Note, (iv) any Institutional Investor to which it sells or offers
to sell such Note or any part thereof or any participation therein (if such
Person has agreed in writing prior to its receipt of such Confidential
Information to be bound by the provisions of this Section 21), (v) any Person
from which it offers to purchase any security of the Company (if such Person
has agreed in writing prior to its receipt of such Confidential Information to
be bound by the provisions of this Section 21), (vi) any federal or state
regulatory authority having jurisdiction over such Purchaser, (vii) the NAIC or
the SVO or, in each case, any similar organization, or any nationally
recognized rating agency that requires access to information about such
Purchaser&#146;s investment portfolio, or (viii) any other Person to which such
delivery or disclosure may be necessary or appropriate (w) to effect compliance
with any law, rule, regulation or order applicable to such Purchaser, (x) in
response to any subpoena or other legal process, (y) in connection with any
litigation to which such Purchaser is a party, or (z) if an Event of Default
has occurred and is continuing, to the extent such Purchaser may reasonably
determine such delivery and disclosure to be necessary or appropriate in the
enforcement or for the protection of the rights and remedies under such
Purchaser&#146;s Notes and this Agreement.&#160;
Each holder of a Note, by its acceptance of a Note, will be deemed to
have agreed to be bound by and to be entitled to the benefits of this Section
21 as though it were a party to this Agreement.&#160;
On reasonable request by the Company in connection with the delivery to
any holder of a Note of information required to be delivered to such holder
under this Agreement or requested by such holder (other than a holder that is a
party to this Agreement or its nominee), such holder will enter into an
agreement with the Company embodying the provisions of this Section 21.</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="font-size:12.0pt;font-weight:bold;margin:0in 0in .0001pt .5in;page-break-after:avoid;text-align:justify;text-indent:-.5in;"><b><font size="3" face="Times New Roman" style="font-size:12.0pt;">22</font></b><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>MISCELLANEOUS.</p>

<p style="font-weight:bold;margin:0in 0in .0001pt .5in;page-break-after:avoid;text-align:justify;text-indent:-.5in;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></b></p>

<p style="font-size:12.0pt;margin:0in 0in .0001pt;text-align:justify;text-indent:.5in;"><b><font size="3" face="Times New Roman"><font style="font-size:12.0pt;font-weight:bold;">22.1&#160;&#160;&#160;&#160; </font>Successors and Assigns</font></b>.</p>

<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">All
covenants and other agreements contained in this Agreement by or on behalf of
any of the parties hereto bind and inure to the benefit of their respective
successors and assigns (including any subsequent holder of a Note) whether so
expressed or not.</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">52<a name="PB_52_120410_1629"></a></font></p>

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<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="font-size:12.0pt;margin:0in 0in .0001pt;text-align:justify;text-indent:.5in;"><b><font size="3" face="Times New Roman"><font style="font-size:12.0pt;font-weight:bold;">22.2&#160;&#160;&#160;&#160; </font>Payments Due on Non-Business Days</font></b>.</p>

<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">Anything
in this Agreement or the Notes to the contrary notwithstanding (but without
limiting the requirement in Section&nbsp;8.4 that the notice of any optional
prepayment specify a Business Day as the date fixed for such prepayment), any
payment of principal of or Make-Whole Amount or interest on any Note that is
due on a date other than a New York Business Day shall be made on the next
succeeding New York Business Day without including the additional days elapsed
in the computation of the interest payable on such next succeeding New York
Business Day; <u>provided</u> that if the maturity date of any Note is a date
other than a Business Day, the payment otherwise due on such maturity date
shall be made on the next succeeding Business Day and shall include the
additional days elapsed in the computation of interest payable on such next
succeeding Business Day.</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:.5in;"><b><font size="3" face="Times New Roman" style="font-size:12.0pt;font-weight:bold;">22.3&#160;&#160;&#160;&#160; Accounting Terms.</font></b></p>

<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:.5in;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">&nbsp;</font></b></p>

<p style="line-height:normal;margin:0in 0in .0001pt;text-align:justify;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">All
accounting terms used herein which are not expressly defined in this Agreement
have the meanings respectively given to them in accordance with GAAP.&#160; Except as otherwise specifically provided
herein, (i)&nbsp;all computations made pursuant to this Agreement shall be made
in accordance with GAAP, and (ii)&nbsp;all financial statements shall be
prepared in accordance with GAAP.</font></p>

<p style="line-height:normal;margin:0in 0in .0001pt;text-align:justify;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:.5in;"><b><font size="3" face="Times New Roman" style="font-size:12.0pt;font-weight:bold;">22.4&#160;&#160;&#160;&#160; Severability.</font></b></p>

<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:.5in;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">&nbsp;</font></b></p>

<p style="margin:0in 0in .0001pt;text-align:justify;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">Any
provision of this Agreement that is prohibited or unenforceable in any
jurisdiction shall, as to such jurisdiction, be ineffective to the extent of
such prohibition or unenforceability without invalidating the remaining
provisions hereof, and any such prohibition or unenforceability in any
jurisdiction shall (to the full extent permitted by law) not invalidate or
render unenforceable such provision in any other jurisdiction.</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;page-break-after:avoid;text-align:justify;text-indent:.5in;"><b><font size="3" face="Times New Roman"><font style="font-size:12.0pt;font-weight:bold;">22.5&#160;&#160;&#160;&#160; </font>Construction.</font></b></p>

<p style="margin:0in 0in .0001pt;page-break-after:avoid;text-align:justify;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;page-break-after:avoid;text-align:justify;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">Each covenant contained herein shall be construed
(absent express provision to the contrary) as being independent of each other
covenant contained herein, so that compliance with any one covenant shall not
(absent such an express contrary provision) be deemed to excuse compliance with
any other covenant.&#160; Where any provision
herein refers to action to be taken by any Person, or which such Person is
prohibited from taking, such provision shall be applicable whether such action
is taken directly or indirectly by such Person.</font></p>

<p style="margin:0in 0in .0001pt;page-break-after:avoid;text-align:justify;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;page-break-after:avoid;text-align:justify;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">For the avoidance of doubt, all Schedules and Exhibits
attached to this Agreement shall be deemed to be a part hereof.</font></p>

<p style="margin:0in 0in .0001pt;page-break-after:avoid;text-align:justify;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:.5in;"><b><font size="3" face="Times New Roman" style="font-size:12.0pt;font-weight:bold;">22.6&#160;&#160;&#160;&#160; Counterparts.</font></b></p>

<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:.5in;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">&nbsp;</font></b></p>

<p style="margin:0in 0in .0001pt;text-align:justify;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">This
Agreement may be executed in any number of counterparts, each of which shall be
an original but all of which together shall constitute one instrument.&#160; Each counterpart may consist of a number of
copies hereof, each signed by less than all, but together signed by all, of the
parties hereto.</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">53<a name="PB_53_120410_6467"></a></font></p>

<div style="margin:0in 0in .0001pt;"><hr size="3" width="100%" noshade color="#010101" align="left"></div>

</div>
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<div style="font-family:Times New Roman;">

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:.5in;"><b><font size="3" face="Times New Roman" style="font-size:12.0pt;font-weight:bold;">22.7&#160;&#160;&#160;&#160; Governing Law.</font></b></p>

<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:.5in;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">&nbsp;</font></b></p>

<p style="margin:0in 0in .0001pt;text-align:justify;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">This
Agreement shall be construed and enforced in accordance with, and the rights of
the parties shall be governed by, the law of the State of New York excluding
choice-of-law principles of the law of such state that would permit the
application of the laws of a jurisdiction other than such state.</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="font-size:12.0pt;margin:0in 0in .0001pt;text-align:justify;text-indent:.5in;"><b><font size="3" face="Times New Roman"><font style="font-size:12.0pt;font-weight:bold;">22.8&#160;&#160;&#160;&#160; </font>Jurisdiction and Process.</font></b>&#160; (a) Each Credit Party irrevocably submits to
the non-exclusive jurisdiction of any New York State or federal court sitting
in the Borough of Manhattan, The City of New York, over any suit, action or
proceeding arising out of or relating to this Agreement (including the
Multiparty Guaranty) or the Notes.&#160; To
the fullest extent permitted by applicable law, each Credit Party irrevocably
waives and agrees not to assert, by way of motion, as a defense or otherwise,
any claim that it is not subject to the jurisdiction of any such court, any
objection that it may now or hereafter have to the laying of the venue of any
such suit, action or proceeding brought in any such court and any claim that
any such suit, action or proceeding brought in any such court has been brought
in an inconvenient forum.</p>

<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; (b)&#160;&#160;&#160;&#160;&#160;&#160;&#160; Each
Credit Party consents to process being served by or on behalf of any holder of
Notes in any suit, action or proceeding of the nature referred to in
Section&nbsp;22.8(a) by mailing a copy thereof by registered or certified mail
(or any substantially similar form of mail), postage prepaid, return receipt
requested, to it at its address specified in Section&nbsp;18 or at such other
address of which such holder shall then have been notified pursuant to said
Section.&#160; Each Credit Party agrees that
such service upon receipt (i)&nbsp;shall be deemed in every respect effective
service of process upon it in any such suit, action or proceeding, and
(ii)&nbsp;shall, to the fullest extent permitted by applicable law, be taken
and held to be valid personal service upon and personal delivery to it.&#160; Notices hereunder shall be conclusively
presumed received as evidenced by a delivery receipt furnished by the United
States Postal Service or any reputable commercial delivery service.</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; (c)&#160;&#160;&#160;&#160;&#160;&#160;&#160; Nothing
in this Section&nbsp;22.8 shall affect the right of any holder of a Note to
serve process in any manner permitted by law, or limit any right that the
holders of any of the Notes may have to bring proceedings against any Credit
Party in the courts of any appropriate jurisdiction or to enforce in any lawful
manner a judgment obtained in one jurisdiction in any other jurisdiction.</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="font-size:12.0pt;margin:0in 0in .0001pt;text-align:justify;text-indent:.5in;"><b><font size="3" face="Times New Roman"><font style="font-size:12.0pt;font-weight:bold;">22.9&#160;&#160;&#160;&#160; </font>Waiver of Jury Trial.</font></b>&#160;
THE PARTIES HERETO HEREBY WAIVE TRIAL BY JURY IN ANY ACTION BROUGHT ON
OR WITH RESPECT TO THIS AGREEMENT (INCLUDING THE MULTIPARTY GUARANTY), THE
NOTES OR ANY OTHER DOCUMENT EXECUTED IN CONNECTION HEREWITH OR THEREWITH.</p>

<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="font-size:12.0pt;margin:0in 0in .0001pt;text-align:justify;text-indent:.5in;"><b><font size="3" face="Times New Roman" style="font-size:12.0pt;font-weight:bold;">22.10&#160;&#160; Transaction References.</font></b>&#160; The
Company agrees that Prudential Capital Group may (a) refer to its role in the
origination of the purchase of the Notes from the Company, as well as the
identity of the Company and the aggregate principal amount and issue date of
the Notes, on its internet site or in marketing materials, press releases,
published &#147;tombstone&#148; announcements or any other print or electronic medium,
and (b) display the Company&#146;s corporate logo in conjunction with any such
reference.</p>

<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">*&#160;&#160;&#160; *&#160;&#160;&#160;
*&#160;&#160;&#160; *&#160;&#160;&#160; *</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">54<a name="PB_54_120410_4102"></a></font></p>

<div style="margin:0in 0in .0001pt;"><hr size="3" width="100%" noshade color="#010101" align="left"></div>

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<div style="font-family:Times New Roman;">

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">&nbsp;</font></p>

<table border="0" cellspacing="0" cellpadding="0" width="100%" style="border-collapse:collapse;width:100.0%;">
 <tr>
  <td width="47%" valign="top" style="padding:0in 0in 0in 0in;width:47.08%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="52%" colspan="2" valign="top" style="padding:0in 0in 0in 0in;width:52.92%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:11.0pt;">Very truly yours,</font></p>
  </td>
 </tr>
 <tr>
  <td width="47%" valign="top" style="padding:0in 0in 0in 0in;width:47.08%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:11.0pt;">&nbsp;</font></p>
  </td>
  <td width="52%" colspan="2" valign="top" style="padding:0in 0in 0in 0in;width:52.92%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:11.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="47%" valign="top" style="padding:0in 0in 0in 0in;width:47.08%;">
  <p style="margin:0in 0in .0001pt;"><b><font size="2" face="Times New Roman" style="font-size:11.0pt;font-weight:bold;">THE COMPANY:</font></b></p>
  </td>
  <td width="52%" colspan="2" valign="top" style="padding:0in 0in 0in 0in;width:52.92%;">
  <p style="margin:0in 0in .0001pt;"><b><font size="2" face="Times New Roman" style="font-size:1.0pt;font-weight:bold;">&nbsp;</font></b></p>
  </td>
 </tr>
 <tr>
  <td width="47%" valign="top" style="padding:0in 0in 0in 0in;width:47.08%;">
  <p style="margin:0in 0in .0001pt;"><b><font size="2" face="Times New Roman" style="font-size:11.0pt;font-weight:bold;">&nbsp;</font></b></p>
  </td>
  <td width="52%" colspan="2" valign="top" style="padding:0in 0in 0in 0in;width:52.92%;">
  <p style="margin:0in 0in .0001pt;"><b><font size="2" face="Times New Roman" style="font-size:11.0pt;font-weight:bold;">&nbsp;</font></b></p>
  </td>
 </tr>
 <tr>
  <td width="47%" valign="top" style="padding:0in 0in 0in 0in;width:47.08%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="52%" colspan="2" valign="top" style="padding:0in 0in 0in 0in;width:52.92%;">
  <p style="margin:0in 0in .0001pt;"><b><font size="2" face="Times New Roman" style="font-size:11.0pt;font-weight:bold;">LTC PROPERTIES, INC.</font></b></p>
  </td>
 </tr>
 <tr>
  <td width="47%" valign="top" style="padding:0in 0in 0in 0in;width:47.08%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:11.0pt;">&nbsp;</font></p>
  </td>
  <td width="52%" colspan="2" valign="top" style="padding:0in 0in 0in 0in;width:52.92%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:11.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="47%" valign="top" style="padding:0in 0in 0in 0in;width:47.08%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:11.0pt;">&nbsp;</font></p>
  </td>
  <td width="52%" colspan="2" valign="top" style="padding:0in 0in 0in 0in;width:52.92%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:11.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="47%" valign="top" style="padding:0in 0in 0in 0in;width:47.08%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="52%" colspan="2" valign="top" style="padding:0in 0in 0in 0in;width:52.92%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:11.0pt;">By: /s/ Pamela Shelley-Kessler</font></p>
  </td>
 </tr>
 <tr>
  <td width="47%" valign="top" style="padding:0in 0in 0in 0in;width:47.08%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="7%" valign="top" style="padding:0in 0in 0in 0in;width:7.26%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:11.0pt;">Name:</font></p>
  </td>
  <td width="45%" valign="top" style="padding:0in 0in 0in 0in;width:45.66%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:11.0pt;">Pamela Shelley-Kessler</font></p>
  </td>
 </tr>
 <tr>
  <td width="47%" valign="top" style="padding:0in 0in 0in 0in;width:47.08%;">
  <p style="margin:0in -13.5pt .0001pt 0in;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="7%" valign="top" style="padding:0in 0in 0in 0in;width:7.26%;">
  <p style="margin:0in -13.5pt .0001pt 0in;"><font size="2" face="Times New Roman" style="font-size:11.0pt;">Title:</font></p>
  </td>
  <td width="45%" valign="top" style="padding:0in 0in 0in 0in;width:45.66%;">
  <p style="margin:0in -13.5pt .0001pt 0in;"><font size="2" face="Times New Roman" style="font-size:11.0pt;">Senior Vice President
  and Chief Financial Officer</font></p>
  </td>
 </tr>
</table>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;"><b><font size="3" face="Times New Roman" style="font-size:12.0pt;font-weight:bold;">THE GUARANTORS:</font></b></p>

<p style="margin:0in 0in .0001pt;text-align:justify;"><b><font size="3" face="Times New Roman" style="font-size:12.0pt;font-weight:bold;">&nbsp;</font></b></p>

<p style="margin:0in 0in .0001pt;text-align:justify;"><b><font size="3" face="Times New Roman" style="font-size:12.0pt;font-weight:bold;">&nbsp;</font></b></p>

<p style="font-size:12.0pt;margin:0in 0in .0001pt;text-align:justify;"><b><font size="3" face="Times New Roman" style="font-size:12.0pt;font-weight:bold;">ALBUQUERQUE REAL ESTATE INVESTMENTS, INC.</font></b>,
a Delaware corporation</p>

<p style="margin:0in 0in .0001pt;text-align:justify;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">&nbsp;</font></p>

<table border="0" cellspacing="0" cellpadding="0" width="100%" style="border-collapse:collapse;width:100.0%;">
 <tr>
  <td width="100%" colspan="2" valign="top" style="padding:0in 0in 0in 0in;width:100.0%;">
  <p style="margin:0in 0in .0001pt 1.0in;"><font size="2" face="Times New Roman" style="font-size:11.0pt;">By: /s/ Pamela
  Shelley-Kessler</font></p>
  </td>
 </tr>
 <tr>
  <td width="20%" valign="top" style="padding:0in 0in 0in 0in;width:20.58%;">
  <p style="margin:0in 0in .0001pt 1.0in;"><font size="2" face="Times New Roman" style="font-size:11.0pt;">Name:</font></p>
  </td>
  <td width="79%" valign="top" style="padding:0in 0in 0in 0in;width:79.42%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:11.0pt;">Pamela Shelley-Kessler</font></p>
  </td>
 </tr>
 <tr>
  <td width="20%" valign="top" style="padding:0in 0in 0in 0in;width:20.58%;">
  <p style="margin:0in 0in .0001pt 1.0in;"><font size="2" face="Times New Roman" style="font-size:11.0pt;">Title:</font></p>
  </td>
  <td width="79%" valign="top" style="padding:0in 0in 0in 0in;width:79.42%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:11.0pt;">Chief Financial Officer and Treasurer</font></p>
  </td>
 </tr>
</table>

<p style="margin:0in 0in .0001pt 1.0in;text-align:justify;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt 1.0in;text-align:justify;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt 1.0in;text-align:justify;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">&nbsp;</font></p>

<p style="font-size:12.0pt;margin:0in 0in .0001pt;text-align:justify;"><b><font size="3" face="Times New Roman" style="font-size:12.0pt;font-weight:bold;">EDUCATION PROPERTY INVESTORS, INC.</font></b>,
a Nevada corporation</p>

<p style="margin:0in 0in .0001pt;text-align:justify;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt 3.0in;text-align:justify;text-indent:-2.0in;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">&nbsp;</font></p>

<table border="0" cellspacing="0" cellpadding="0" width="100%" style="border-collapse:collapse;width:100.0%;">
 <tr>
  <td width="100%" colspan="2" valign="top" style="padding:0in 0in 0in 0in;width:100.0%;">
  <p style="margin:0in 0in .0001pt 82.0pt;text-indent:-10.0pt;"><font size="2" face="Times New Roman" style="font-size:11.0pt;">By: /s/ Pamela
  Shelley-Kessler</font></p>
  </td>
 </tr>
 <tr>
  <td width="20%" valign="top" style="padding:0in 0in 0in 0in;width:20.26%;">
  <p style="margin:0in 0in .0001pt 1.0in;"><font size="2" face="Times New Roman" style="font-size:11.0pt;">Name:</font></p>
  </td>
  <td width="79%" valign="top" style="padding:0in 0in 0in 0in;width:79.76%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:11.0pt;">Pamela Shelley-Kessler</font></p>
  </td>
 </tr>
 <tr>
  <td width="20%" valign="top" style="padding:0in 0in 0in 0in;width:20.26%;">
  <p style="margin:0in 0in .0001pt 1.0in;"><font size="2" face="Times New Roman" style="font-size:11.0pt;">Title:</font></p>
  </td>
  <td width="79%" valign="top" style="padding:0in 0in 0in 0in;width:79.76%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:11.0pt;">Senior Vice President and Chief Financial Officer</font></p>
  </td>
 </tr>
</table>

<p style="margin:0in 0in .0001pt 1.0in;text-align:justify;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt 1.0in;text-align:justify;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">&nbsp;</font></p>

<p style="font-size:12.0pt;margin:0in 0in .0001pt;text-align:justify;"><b><font size="3" face="Times New Roman" style="font-size:12.0pt;font-weight:bold;">FLORIDA-LTC, INC.</font></b>, a Nevada
corporation</p>

<p style="margin:0in 0in .0001pt;text-align:justify;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:1.0in;"><b><font size="3" face="Times New Roman" style="font-size:12.0pt;font-weight:bold;">&nbsp;</font></b></p>

<table border="0" cellspacing="0" cellpadding="0" width="100%" style="border-collapse:collapse;width:100.0%;">
 <tr>
  <td width="100%" colspan="2" valign="top" style="padding:0in 0in 0in 0in;width:100.0%;">
  <p style="margin:0in 0in .0001pt 82.0pt;text-indent:-10.0pt;"><font size="2" face="Times New Roman" style="font-size:11.0pt;">By: /s/ Pamela
  Shelley-Kessler</font></p>
  </td>
 </tr>
 <tr>
  <td width="20%" valign="top" style="padding:0in 0in 0in 0in;width:20.0%;">
  <p style="margin:0in 0in .0001pt 1.0in;"><font size="2" face="Times New Roman" style="font-size:11.0pt;">Name:</font></p>
  </td>
  <td width="80%" valign="top" style="padding:0in 0in 0in 0in;width:80.0%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:11.0pt;">Pamela Shelley-Kessler</font></p>
  </td>
 </tr>
 <tr>
  <td width="20%" valign="top" style="padding:0in 0in 0in 0in;width:20.0%;">
  <p style="margin:0in 0in .0001pt 1.0in;"><font size="2" face="Times New Roman" style="font-size:11.0pt;">Title:</font></p>
  </td>
  <td width="80%" valign="top" style="padding:0in 0in 0in 0in;width:80.0%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:11.0pt;">Senior Vice President and Chief Financial Officer</font></p>
  </td>
 </tr>
</table>

<p style="margin:0in 0in .0001pt 1.0in;text-align:justify;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">&nbsp;</font></p>

<p style="font-size:12.0pt;margin:0in 0in .0001pt;text-align:justify;"><b><font size="3" face="Times New Roman" style="font-size:12.0pt;font-weight:bold;">LTC GP I, INC.</font></b>, a Delaware
corporation</p>

<p style="margin:0in 0in .0001pt;text-align:justify;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt 3.0in;text-align:justify;text-indent:-2.0in;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">&nbsp;</font></p>

<table border="0" cellspacing="0" cellpadding="0" width="100%" style="border-collapse:collapse;width:100.0%;">
 <tr>
  <td width="100%" colspan="2" valign="top" style="padding:0in 0in 0in 0in;width:100.0%;">
  <p style="margin:0in 0in .0001pt 82.0pt;text-indent:-10.0pt;"><font size="2" face="Times New Roman" style="font-size:11.0pt;">By: /s/ Pamela
  Shelley-Kessler</font></p>
  </td>
 </tr>
 <tr>
  <td width="20%" valign="top" style="padding:0in 0in 0in 0in;width:20.16%;">
  <p style="margin:0in 0in .0001pt 1.0in;"><font size="2" face="Times New Roman" style="font-size:11.0pt;">Name:</font></p>
  </td>
  <td width="79%" valign="top" style="padding:0in 0in 0in 0in;width:79.84%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:11.0pt;">Pamela Shelley-Kessler</font></p>
  </td>
 </tr>
 <tr>
  <td width="20%" valign="top" style="padding:0in 0in 0in 0in;width:20.16%;">
  <p style="margin:0in 0in .0001pt 1.0in;"><font size="2" face="Times New Roman" style="font-size:11.0pt;">Title:</font></p>
  </td>
  <td width="79%" valign="top" style="padding:0in 0in 0in 0in;width:79.84%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:11.0pt;">Senior Vice President and Chief Financial Officer</font></p>
  </td>
 </tr>
</table>

<p style="margin:0in 0in .0001pt 1.0in;text-align:justify;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">&nbsp;</font></p>

<p style="font-size:12.0pt;margin:0in 0in .0001pt;text-align:justify;"><b><font size="3" face="Times New Roman" style="font-size:12.0pt;font-weight:bold;">LTC-GARDNER, INC.</font></b>, a Delaware
corporation</p>

<p style="margin:0in 0in .0001pt;text-align:justify;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:1.0in;"><b><font size="3" face="Times New Roman" style="font-size:12.0pt;font-weight:bold;">&nbsp;</font></b></p>

<table border="0" cellspacing="0" cellpadding="0" width="100%" style="border-collapse:collapse;width:100.0%;">
 <tr>
  <td width="100%" colspan="2" valign="top" style="padding:0in 0in 0in 0in;width:100.0%;">
  <p style="margin:0in 0in .0001pt 82.0pt;text-indent:-10.0pt;"><font size="2" face="Times New Roman" style="font-size:11.0pt;">By: /s/ Pamela
  Shelley-Kessler</font></p>
  </td>
 </tr>
 <tr>
  <td width="20%" valign="top" style="padding:0in 0in 0in 0in;width:20.16%;">
  <p style="margin:0in 0in .0001pt 1.0in;"><font size="2" face="Times New Roman" style="font-size:11.0pt;">Name:</font></p>
  </td>
  <td width="79%" valign="top" style="padding:0in 0in 0in 0in;width:79.84%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:11.0pt;">Pamela Shelley-Kessler</font></p>
  </td>
 </tr>
 <tr>
  <td width="20%" valign="top" style="padding:0in 0in 0in 0in;width:20.16%;">
  <p style="margin:0in 0in .0001pt 1.0in;"><font size="2" face="Times New Roman" style="font-size:11.0pt;">Title:</font></p>
  </td>
  <td width="79%" valign="top" style="padding:0in 0in 0in 0in;width:79.84%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:11.0pt;">Senior Vice President and Chief Financial Officer</font></p>
  </td>
 </tr>
</table>

<p style="margin:0in 0in .0001pt;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">&nbsp;</font></p>

<div style="margin:0in 0in .0001pt;"><hr size="3" width="100%" noshade color="#010101" align="left"></div>

</div>
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<br clear="all" style="page-break-before:always;">


<div style="font-family:Times New Roman;">

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="font-size:12.0pt;margin:0in 0in .0001pt;page-break-after:avoid;text-align:justify;"><b><font size="3" face="Times New Roman" style="font-size:12.0pt;font-weight:bold;">LTC-GRIFFIN, INC.</font></b>, a Nevada
corporation</p>

<p style="margin:0in 0in .0001pt;page-break-after:avoid;text-align:justify;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt 3.0in;page-break-after:avoid;text-align:justify;text-indent:-2.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<table border="0" cellspacing="0" cellpadding="0" width="100%" style="border-collapse:collapse;width:100.0%;">
 <tr>
  <td width="100%" colspan="2" valign="top" style="padding:0in 0in 0in 0in;width:100.0%;">
  <p style="margin:0in 0in .0001pt 82.0pt;text-indent:-10.0pt;"><font size="2" face="Times New Roman" style="font-size:11.0pt;">By: /s/ Pamela
  Shelley-Kessler</font></p>
  </td>
 </tr>
 <tr>
  <td width="20%" valign="top" style="padding:0in 0in 0in 0in;width:20.84%;">
  <p style="margin:0in 0in .0001pt 82.0pt;text-indent:-10.0pt;"><font size="2" face="Times New Roman" style="font-size:11.0pt;">Name:</font></p>
  </td>
  <td width="79%" valign="top" style="padding:0in 0in 0in 0in;width:79.16%;">
  <p style="margin:0in 0in .0001pt;page-break-after:avoid;"><font size="2" face="Times New Roman" style="font-size:11.0pt;">Pamela Shelley-Kessler</font></p>
  </td>
 </tr>
 <tr>
  <td width="20%" valign="top" style="padding:0in 0in 0in 0in;width:20.84%;">
  <p style="margin:0in 0in .0001pt 82.0pt;text-indent:-10.0pt;"><font size="2" face="Times New Roman" style="font-size:11.0pt;">Title:</font></p>
  </td>
  <td width="79%" valign="top" style="padding:0in 0in 0in 0in;width:79.16%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:11.0pt;">Senior Vice President and Chief Financial Officer</font></p>
  </td>
 </tr>
</table>

<p style="margin:0in 0in .0001pt 1.0in;text-align:justify;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="font-size:12.0pt;margin:0in 0in .0001pt;text-align:justify;"><b><font size="3" face="Times New Roman" style="font-size:12.0pt;font-weight:bold;">LTC-JONESBORO, INC.</font></b>, a Nevada
corporation</p>

<p style="margin:0in 0in .0001pt;text-align:justify;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt 3.0in;text-align:justify;text-indent:-2.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<table border="0" cellspacing="0" cellpadding="0" width="100%" style="border-collapse:collapse;width:100.0%;">
 <tr>
  <td width="100%" colspan="2" valign="top" style="padding:0in 0in 0in 0in;width:100.0%;">
  <p style="margin:0in 0in .0001pt 82.0pt;text-indent:-10.0pt;"><font size="2" face="Times New Roman" style="font-size:11.0pt;">By: /s/ Pamela
  Shelley-Kessler</font></p>
  </td>
 </tr>
 <tr>
  <td width="20%" valign="top" style="padding:0in 0in 0in 0in;width:20.84%;">
  <p style="margin:0in 0in .0001pt 1.0in;"><font size="2" face="Times New Roman" style="font-size:11.0pt;">Name:</font></p>
  </td>
  <td width="79%" valign="top" style="padding:0in 0in 0in 0in;width:79.16%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:11.0pt;">Pamela Shelley-Kessler</font></p>
  </td>
 </tr>
 <tr>
  <td width="20%" valign="top" style="padding:0in 0in 0in 0in;width:20.84%;">
  <p style="margin:0in 0in .0001pt 1.0in;"><font size="2" face="Times New Roman" style="font-size:11.0pt;">Title:</font></p>
  </td>
  <td width="79%" valign="top" style="padding:0in 0in 0in 0in;width:79.16%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:11.0pt;">Senior Vice President and Chief Financial Officer</font></p>
  </td>
 </tr>
</table>

<p style="margin:0in 0in .0001pt 1.0in;text-align:justify;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="font-size:12.0pt;margin:0in 0in .0001pt;text-align:justify;"><b><font size="3" face="Times New Roman" style="font-size:12.0pt;font-weight:bold;">NORTH CAROLINA REAL ESTATE INVESTMENTS, LLC</font></b>,
a North Carolina limited liability company</p>

<p style="margin:0in 0in .0001pt;text-align:justify;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<table border="0" cellspacing="0" cellpadding="0" width="100%" style="border-collapse:collapse;width:100.0%;">
 <tr>
  <td width="100%" colspan="2" valign="top" style="padding:0in 0in 0in 0in;width:100.0%;">
  <p style="margin:0in 0in .0001pt 82.0pt;text-indent:-10.0pt;"><font size="2" face="Times New Roman" style="font-size:11.0pt;">By:
  LTC-Dearfield, Inc., its manager</font></p>
  </td>
 </tr>
 <tr>
  <td width="21%" valign="top" style="padding:0in 0in 0in 0in;width:21.26%;">
  <p style="margin:0in 0in .0001pt 1.0in;"><font size="2" face="Times New Roman" style="font-size:11.0pt;">&nbsp;</font></p>
  </td>
  <td width="78%" valign="top" style="padding:0in 0in 0in 0in;width:78.76%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:11.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="100%" colspan="2" valign="top" style="padding:0in 0in 0in 0in;width:100.0%;">
  <p style="margin:0in 0in .0001pt 82.0pt;text-indent:-10.0pt;"><font size="2" face="Times New Roman" style="font-size:11.0pt;">By: /s/ Pamela
  Shelley-Kessler</font></p>
  </td>
 </tr>
 <tr>
  <td width="21%" valign="top" style="padding:0in 0in 0in 0in;width:21.26%;">
  <p style="margin:0in 0in .0001pt 1.0in;"><font size="2" face="Times New Roman" style="font-size:11.0pt;">Name:</font></p>
  </td>
  <td width="78%" valign="top" style="padding:0in 0in 0in 0in;width:78.76%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:11.0pt;">Pamela Shelley-Kessler</font></p>
  </td>
 </tr>
 <tr>
  <td width="21%" valign="top" style="padding:0in 0in 0in 0in;width:21.26%;">
  <p style="margin:0in 0in .0001pt 1.0in;"><font size="2" face="Times New Roman" style="font-size:11.0pt;">Title:</font></p>
  </td>
  <td width="78%" valign="top" style="padding:0in 0in 0in 0in;width:78.76%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:11.0pt;">Senior Vice President and Chief Financial Officer</font></p>
  </td>
 </tr>
 <tr>
  <td width="21%" valign="top" style="padding:0in 0in 0in 0in;width:21.26%;">
  <p style="margin:0in 0in .0001pt 1.0in;"><font size="2" face="Times New Roman" style="font-size:11.0pt;">&nbsp;</font></p>
  </td>
  <td width="78%" valign="top" style="padding:0in 0in 0in 0in;width:78.76%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:11.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="100%" colspan="2" valign="top" style="padding:0in 0in 0in 0in;width:100.0%;">
  <p style="margin:0in 0in .0001pt 82.0pt;text-indent:-10.0pt;"><font size="2" face="Times New Roman" style="font-size:11.0pt;">By:
  LTC-Richmond, Inc., its manager</font></p>
  </td>
 </tr>
 <tr>
  <td width="21%" valign="top" style="padding:0in 0in 0in 0in;width:21.26%;">
  <p style="margin:0in 0in .0001pt 1.0in;"><font size="2" face="Times New Roman" style="font-size:11.0pt;">&nbsp;</font></p>
  </td>
  <td width="78%" valign="top" style="padding:0in 0in 0in 0in;width:78.76%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:11.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="100%" colspan="2" valign="top" style="padding:0in 0in 0in 0in;width:100.0%;">
  <p style="margin:0in 0in .0001pt 82.0pt;text-indent:-10.0pt;"><font size="2" face="Times New Roman" style="font-size:11.0pt;">By: /s/ Pamela
  Shelley-Kessler</font></p>
  </td>
 </tr>
 <tr>
  <td width="21%" valign="top" style="padding:0in 0in 0in 0in;width:21.26%;">
  <p style="margin:0in 0in .0001pt 1.0in;"><font size="2" face="Times New Roman" style="font-size:11.0pt;">Name:</font></p>
  </td>
  <td width="78%" valign="top" style="padding:0in 0in 0in 0in;width:78.76%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:11.0pt;">Pamela Shelley-Kessler</font></p>
  </td>
 </tr>
 <tr>
  <td width="21%" valign="top" style="padding:0in 0in 0in 0in;width:21.26%;">
  <p style="margin:0in 0in .0001pt 1.0in;"><font size="2" face="Times New Roman" style="font-size:11.0pt;">Title:</font></p>
  </td>
  <td width="78%" valign="top" style="padding:0in 0in 0in 0in;width:78.76%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:11.0pt;">Senior Vice President and Chief Financial Officer</font></p>
  </td>
 </tr>
 <tr>
  <td width="21%" valign="top" style="padding:0in 0in 0in 0in;width:21.26%;">
  <p style="margin:0in 0in .0001pt 1.0in;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">&nbsp;</font></p>
  </td>
  <td width="78%" valign="top" style="padding:0in 0in 0in 0in;width:78.76%;">
  <p style="margin:0in 0in .0001pt;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="21%" valign="top" style="padding:0in 0in 0in 0in;width:21.26%;">
  <p style="margin:0in 0in .0001pt 1.0in;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">&nbsp;</font></p>
  </td>
  <td width="78%" valign="top" style="padding:0in 0in 0in 0in;width:78.76%;">
  <p style="margin:0in 0in .0001pt;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="100%" colspan="2" valign="top" style="padding:0in 0in 0in 0in;width:100.0%;">
  <p style="font-size:12.0pt;margin:0in 0in .0001pt 10.0pt;text-indent:-10.0pt;"><b><font size="3" face="Times New Roman" style="font-size:12.0pt;font-weight:bold;">LTC
  PARTNERS IX, L.P.</font></b>, a Delaware limited partnership</p>
  </td>
 </tr>
 <tr>
  <td width="21%" valign="top" style="padding:0in 0in 0in 0in;width:21.26%;">
  <p style="margin:0in 0in .0001pt 1.0in;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">&nbsp;</font></p>
  </td>
  <td width="78%" valign="top" style="padding:0in 0in 0in 0in;width:78.76%;">
  <p style="margin:0in 0in .0001pt;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="100%" colspan="2" valign="top" style="padding:0in 0in 0in 0in;width:100.0%;">
  <p style="margin:0in 0in .0001pt 82.0pt;text-indent:-10.0pt;"><font size="2" face="Times New Roman" style="font-size:11.0pt;">By: LTC GP VI,
  Inc., its general partner</font></p>
  </td>
 </tr>
 <tr>
  <td width="21%" valign="top" style="padding:0in 0in 0in 0in;width:21.26%;">
  <p style="margin:0in 0in .0001pt 1.0in;"><font size="2" face="Times New Roman" style="font-size:11.0pt;">&nbsp;</font></p>
  </td>
  <td width="78%" valign="top" style="padding:0in 0in 0in 0in;width:78.76%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:11.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="100%" colspan="2" valign="top" style="padding:0in 0in 0in 0in;width:100.0%;">
  <p style="margin:0in 0in .0001pt 82.0pt;text-indent:-10.0pt;"><font size="2" face="Times New Roman" style="font-size:11.0pt;">By: /s/ Pamela
  Shelley-Kessler</font></p>
  </td>
 </tr>
 <tr>
  <td width="21%" valign="top" style="padding:0in 0in 0in 0in;width:21.26%;">
  <p style="margin:0in 0in .0001pt 1.0in;"><font size="2" face="Times New Roman" style="font-size:11.0pt;">Name:</font></p>
  </td>
  <td width="78%" valign="top" style="padding:0in 0in 0in 0in;width:78.76%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:11.0pt;">Pamela Shelley-Kessler</font></p>
  </td>
 </tr>
 <tr>
  <td width="21%" valign="top" style="padding:0in 0in 0in 0in;width:21.26%;">
  <p style="margin:0in 0in .0001pt 1.0in;"><font size="2" face="Times New Roman" style="font-size:11.0pt;">Title:</font></p>
  </td>
  <td width="78%" valign="top" style="padding:0in 0in 0in 0in;width:78.76%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:11.0pt;">Senior Vice President and Chief Financial Officer</font></p>
  </td>
 </tr>
 <tr>
  <td width="21%" valign="top" style="padding:0in 0in 0in 0in;width:21.26%;">
  <p style="margin:0in 0in .0001pt 1.0in;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">&nbsp;</font></p>
  </td>
  <td width="78%" valign="top" style="padding:0in 0in 0in 0in;width:78.76%;">
  <p style="margin:0in 0in .0001pt;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="21%" valign="top" style="padding:0in 0in 0in 0in;width:21.26%;">
  <p style="margin:0in 0in .0001pt 1.0in;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">&nbsp;</font></p>
  </td>
  <td width="78%" valign="top" style="padding:0in 0in 0in 0in;width:78.76%;">
  <p style="margin:0in 0in .0001pt;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="100%" colspan="2" valign="top" style="padding:0in 0in 0in 0in;width:100.0%;">
  <p style="font-size:12.0pt;margin:0in 0in .0001pt 10.0pt;text-indent:-10.0pt;"><b><font size="3" face="Times New Roman" style="font-size:12.0pt;font-weight:bold;">TEXAS-LTC
  LIMITED PARTNERSHIP</font></b>, a Texas limited partnership</p>
  </td>
 </tr>
 <tr>
  <td width="21%" valign="top" style="padding:0in 0in 0in 0in;width:21.26%;">
  <p style="margin:0in 0in .0001pt 1.0in;"><b><font size="3" face="Times New Roman" style="font-size:12.0pt;font-weight:bold;">&nbsp;</font></b></p>
  </td>
  <td width="78%" valign="top" style="padding:0in 0in 0in 0in;width:78.76%;">
  <p style="margin:0in 0in .0001pt;"><b><font size="3" face="Times New Roman" style="font-size:12.0pt;font-weight:bold;">&nbsp;</font></b></p>
  </td>
 </tr>
 <tr>
  <td width="100%" colspan="2" valign="top" style="padding:0in 0in 0in 0in;width:100.0%;">
  <p style="margin:0in 0in .0001pt 82.0pt;text-indent:-10.0pt;"><font size="2" face="Times New Roman" style="font-size:11.0pt;">By: L-Tex GP,
  Inc., its general partner</font></p>
  </td>
 </tr>
 <tr>
  <td width="100%" colspan="2" valign="top" style="padding:0in 0in 0in 0in;width:100.0%;">
  <p style="margin:0in 0in .0001pt 10.0pt;text-indent:-10.0pt;"><font size="2" face="Times New Roman" style="font-size:11.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="100%" colspan="2" valign="top" style="padding:0in 0in 0in 0in;width:100.0%;">
  <p style="margin:0in 0in .0001pt 82.0pt;text-indent:-10.0pt;"><font size="2" face="Times New Roman" style="font-size:11.0pt;">By: /s/ Pamela
  Shelley-Kessler</font></p>
  </td>
 </tr>
 <tr>
  <td width="21%" valign="top" style="padding:0in 0in 0in 0in;width:21.26%;">
  <p style="margin:0in 0in .0001pt 1.0in;"><font size="2" face="Times New Roman" style="font-size:11.0pt;">Name:</font></p>
  </td>
  <td width="78%" valign="top" style="padding:0in 0in 0in 0in;width:78.76%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:11.0pt;">Pamela Shelley-Kessler</font></p>
  </td>
 </tr>
 <tr>
  <td width="21%" valign="top" style="padding:0in 0in 0in 0in;width:21.26%;">
  <p style="margin:0in 0in .0001pt 1.0in;"><font size="2" face="Times New Roman" style="font-size:11.0pt;">Title:</font></p>
  </td>
  <td width="78%" valign="top" style="padding:0in 0in 0in 0in;width:78.76%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:11.0pt;">Senior Vice President and Chief Financial Officer</font></p>
  </td>
 </tr>
</table>

<p style="margin:0in 0in .0001pt 1.0in;text-align:justify;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<div style="margin:0in 0in .0001pt;"><hr size="3" width="100%" noshade color="#010101" align="left"></div>

</div>
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<div style="font-family:Times New Roman;">

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<table border="0" cellspacing="0" cellpadding="0" width="100%" style="border-collapse:collapse;width:100.0%;">
 <tr>
  <td width="100%" colspan="2" valign="top" style="padding:0in 0in 0in 0in;width:100.0%;">
  <p style="font-size:12.0pt;margin:0in 0in .0001pt 10.0pt;page-break-after:avoid;text-indent:-10.0pt;"><b><font size="3" face="Times New Roman" style="font-size:12.0pt;font-weight:bold;">TEXAS-LTC WOODRIDGE LIMITED PARTNERSHIP</font></b>,
  a Delaware limited partnership</p>
  </td>
 </tr>
 <tr>
  <td width="21%" valign="top" style="padding:0in 0in 0in 0in;width:21.26%;">
  <p style="margin:0in 0in .0001pt;page-break-after:avoid;"><b><font size="3" face="Times New Roman" style="font-size:12.0pt;font-weight:bold;">&nbsp;</font></b></p>
  </td>
  <td width="78%" valign="top" style="padding:0in 0in 0in 0in;width:78.76%;">
  <p style="margin:0in 0in .0001pt;page-break-after:avoid;"><b><font size="3" face="Times New Roman" style="font-size:12.0pt;font-weight:bold;">&nbsp;</font></b></p>
  </td>
 </tr>
 <tr>
  <td width="100%" colspan="2" valign="top" style="padding:0in 0in 0in 0in;width:100.0%;">
  <p style="margin:0in 0in .0001pt 82.0pt;text-indent:-10.0pt;"><font size="2" face="Times New Roman" style="font-size:11.0pt;">By: L-Tex GP,
  Inc., its general partner</font></p>
  </td>
 </tr>
 <tr>
  <td width="21%" valign="top" style="padding:0in 0in 0in 0in;width:21.26%;">
  <p style="margin:0in 0in .0001pt 1.0in;page-break-after:avoid;"><font size="2" face="Times New Roman" style="font-size:11.0pt;">&nbsp;</font></p>
  </td>
  <td width="78%" valign="top" style="padding:0in 0in 0in 0in;width:78.76%;">
  <p style="margin:0in 0in .0001pt;page-break-after:avoid;"><font size="2" face="Times New Roman" style="font-size:11.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="100%" colspan="2" valign="top" style="padding:0in 0in 0in 0in;width:100.0%;">
  <p style="margin:0in 0in .0001pt 82.0pt;text-indent:-10.0pt;"><font size="2" face="Times New Roman" style="font-size:11.0pt;">By: /s/ Pamela
  Shelley-Kessler</font></p>
  </td>
 </tr>
 <tr>
  <td width="21%" valign="top" style="padding:0in 0in 0in 0in;width:21.26%;">
  <p style="margin:0in 0in .0001pt 1.0in;page-break-after:avoid;"><font size="2" face="Times New Roman" style="font-size:11.0pt;">Name:</font></p>
  </td>
  <td width="78%" valign="top" style="padding:0in 0in 0in 0in;width:78.76%;">
  <p style="margin:0in 0in .0001pt;page-break-after:avoid;"><font size="2" face="Times New Roman" style="font-size:11.0pt;">Pamela Shelley-Kessler</font></p>
  </td>
 </tr>
 <tr>
  <td width="21%" valign="top" style="padding:0in 0in 0in 0in;width:21.26%;">
  <p style="margin:0in 0in .0001pt 1.0in;"><font size="2" face="Times New Roman" style="font-size:11.0pt;">Title:</font></p>
  </td>
  <td width="78%" valign="top" style="padding:0in 0in 0in 0in;width:78.76%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:11.0pt;">Senior Vice President and Chief Financial Officer</font></p>
  </td>
 </tr>
 <tr>
  <td width="21%" valign="top" style="padding:0in 0in 0in 0in;width:21.26%;">
  <p style="margin:0in 0in .0001pt;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">&nbsp;</font></p>
  </td>
  <td width="78%" valign="top" style="padding:0in 0in 0in 0in;width:78.76%;">
  <p style="margin:0in 0in .0001pt;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="21%" valign="top" style="padding:0in 0in 0in 0in;width:21.26%;">
  <p style="margin:0in 0in .0001pt;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">&nbsp;</font></p>
  </td>
  <td width="78%" valign="top" style="padding:0in 0in 0in 0in;width:78.76%;">
  <p style="margin:0in 0in .0001pt;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="100%" colspan="2" valign="top" style="padding:0in 0in 0in 0in;width:100.0%;">
  <p style="font-size:12.0pt;margin:0in 0in .0001pt 10.0pt;text-indent:-10.0pt;"><b><font size="3" face="Times New Roman" style="font-size:12.0pt;font-weight:bold;">BEAUMONT
  REAL ESTATE INVESTMENTS, LP</font></b>, a Texas limited partnership</p>
  </td>
 </tr>
 <tr>
  <td width="21%" valign="top" style="padding:0in 0in 0in 0in;width:21.26%;">
  <p style="margin:0in 0in .0001pt;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">&nbsp;</font></p>
  </td>
  <td width="78%" valign="top" style="padding:0in 0in 0in 0in;width:78.76%;">
  <p style="margin:0in 0in .0001pt;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="100%" colspan="2" valign="top" style="padding:0in 0in 0in 0in;width:100.0%;">
  <p style="margin:0in 0in .0001pt 82.0pt;text-indent:-10.0pt;"><font size="2" face="Times New Roman" style="font-size:11.0pt;">By: L-Tex GP,
  Inc., its general partner</font></p>
  </td>
 </tr>
 <tr>
  <td width="21%" valign="top" style="padding:0in 0in 0in 0in;width:21.26%;">
  <p style="margin:0in 0in .0001pt 1.0in;"><font size="2" face="Times New Roman" style="font-size:11.0pt;">&nbsp;</font></p>
  </td>
  <td width="78%" valign="top" style="padding:0in 0in 0in 0in;width:78.76%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:11.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="100%" colspan="2" valign="top" style="padding:0in 0in 0in 0in;width:100.0%;">
  <p style="margin:0in 0in .0001pt 82.0pt;text-indent:-10.0pt;"><font size="2" face="Times New Roman" style="font-size:11.0pt;">By: /s/ Pamela
  Shelley-Kessler</font></p>
  </td>
 </tr>
 <tr>
  <td width="21%" valign="top" style="padding:0in 0in 0in 0in;width:21.26%;">
  <p style="margin:0in 0in .0001pt 1.0in;"><font size="2" face="Times New Roman" style="font-size:11.0pt;">Name:</font></p>
  </td>
  <td width="78%" valign="top" style="padding:0in 0in 0in 0in;width:78.76%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:11.0pt;">Pamela Shelley-Kessler</font></p>
  </td>
 </tr>
 <tr>
  <td width="21%" valign="top" style="padding:0in 0in 0in 0in;width:21.26%;">
  <p style="margin:0in 0in .0001pt 1.0in;"><font size="2" face="Times New Roman" style="font-size:11.0pt;">Title:</font></p>
  </td>
  <td width="78%" valign="top" style="padding:0in 0in 0in 0in;width:78.76%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:11.0pt;">Senior Vice President and Chief Financial Officer</font></p>
  </td>
 </tr>
</table>

<p style="margin:0in 0in .0001pt 1.0in;text-align:justify;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<div style="margin:0in 0in .0001pt;"><hr size="3" width="100%" noshade color="#010101" align="left"></div>

</div>
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<div>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">The foregoing is hereby
agreed to as of</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">the date thereof.</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;"><b><font size="3" face="Times New Roman" style="font-size:12.0pt;font-weight:bold;">PRUDENTIAL
INVESTMENT MANAGEMENT, INC.</font></b></p>

<p style="margin:0in 0in .0001pt;text-align:justify;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">&nbsp;</font></b></p>

<p style="margin:0in 0in .0001pt;text-align:justify;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">By: <u>/s/ Cornelia Cheng</u></font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; Vice President</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;"><b><font size="3" face="Times New Roman" style="font-size:12.0pt;font-weight:bold;">THE PRUDENTIAL INSURANCE COMPANY</font></b></p>

<p style="margin:0in 0in .0001pt;text-align:justify;"><b><font size="3" face="Times New Roman" style="font-size:12.0pt;font-weight:bold;">OF AMERICA</font></b></p>

<p style="margin:0in 0in .0001pt;text-align:justify;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;"><a name="OLE_LINK9"><font size="3" face="Times New Roman" style="font-size:12.0pt;">By: <u>/s/ Cornelia Cheng</u></font></a></p>

<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:.5in;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">Title:&#160; Vice President</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;"><b><font size="3" face="Times New Roman" style="font-size:12.0pt;font-weight:bold;">PRUCO LIFE INSURANCE COMPANY</font></b></p>

<p style="margin:0in 0in .0001pt;text-align:justify;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">By: <u>/s/
Cornelia Cheng</u></font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">Title:&#160; Vice President</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">&nbsp;</font></b></p>

<p style="margin:0in 0in .0001pt;text-align:justify;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">&nbsp;</font></b></p>

<p style="margin:0in 0in .0001pt;text-align:justify;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">&nbsp;</font></b></p>

<p style="margin:0in 0in .0001pt;"><b><font size="3" face="Times New Roman" style="font-size:12.0pt;font-weight:bold;">UNITED OF
OMAHA LIFE INSURANCE <br>
COMPANY</font></b></p>

<p style="margin:0in 0in .0001pt;text-align:justify;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">By:&#160; Prudential Private Placement Investors, L.P.,
asset manager</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">By:&#160; Prudential Private Placement Investors, Inc.,
general partner</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">By: <u>/s/ Cornelia Cheng</u></font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">Title:&#160; Vice President</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">&nbsp;</font></b></p>

<div style="margin:0in 0in .0001pt;"><hr size="3" width="100%" noshade color="#010101" align="left"></div>

</div>
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<div style="font-family:Times New Roman;">

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><b><font size="3" face="Times New Roman" style="font-size:12.0pt;font-weight:bold;">INFORMATION SCHEDULE</font></b></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">&nbsp;</font></b></p>

<p style="margin:0in 0in .0001pt;"><b><i><u><font size="2" face="Times New Roman" style="font-size:11.0pt;font-style:italic;font-weight:bold;">Authorized
Officers for PIM</font></u></i></b></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<table border="0" cellspacing="0" cellpadding="0" width="100%" style="border-collapse:collapse;width:100.0%;">
 <tr>
  <td width="50%" valign="top" style="padding:0in 0in 0in 0in;width:50.0%;">
  <p style="margin:0in 0in .0001pt;"><b><font size="2" face="Times New Roman" style="font-size:11.0pt;font-weight:bold;">Mitchell W. Reed<br>
  </font></b><font size="2" style="font-size:11.0pt;">Senior Vice President<br>
  PRUDENTIAL CAPITAL GROUP<br>
  Four Embarcadero Center, Suite 2700<br>
  San Francisco, California 94111<br>
  Telephone:</font><font size="1" style="font-size:3.0pt;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </font><font size="2" style="font-size:11.0pt;">(415)
  291-5059<br>
  Facsimile:</font><font size="1" style="font-size:3.0pt;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </font><font size="2" style="font-size:11.0pt;">(415)
  421-6233</font></p>
  </td>
  <td width="50%" valign="top" style="padding:0in 0in 0in 0in;width:50.0%;">
  <p style="margin:0in 0in .0001pt;"><b><font size="2" face="Times New Roman" style="font-size:11.0pt;font-weight:bold;">Stephen J. DeMartini<br>
  </font></b><font size="2" style="font-size:11.0pt;">Managing Director<br>
  PRUDENTIAL CAPITAL GROUP<br>
  Four Embarcadero Center, Suite 2700<br>
  San Francisco, California 94111<br>
  Telephone:</font><font size="1" style="font-size:3.0pt;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </font><font size="2" style="font-size:11.0pt;">(415)
  291-5058<br>
  Facsimile:</font><font size="1" style="font-size:3.0pt;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </font><font size="2" style="font-size:11.0pt;">(415)
  421-6233</font></p>
  </td>
 </tr>
 <tr>
  <td width="50%" valign="top" style="padding:0in 0in 0in 0in;width:50.0%;">
  <p style="margin:0in 0in .0001pt;"><b><font size="2" face="Times New Roman" style="font-size:11.0pt;font-weight:bold;">&nbsp;</font></b></p>
  </td>
  <td width="50%" valign="top" style="padding:0in 0in 0in 0in;width:50.0%;">
  <p style="margin:0in 0in .0001pt;"><b><font size="2" face="Times New Roman" style="font-size:11.0pt;font-weight:bold;">&nbsp;</font></b></p>
  </td>
 </tr>
 <tr>
  <td width="50%" valign="top" style="padding:0in 0in 0in 0in;width:50.0%;">
  <p style="margin:0in 0in .0001pt;"><b><font size="2" face="Times New Roman" style="font-size:11.0pt;font-weight:bold;">Iris Krause<br>
  </font></b><font size="2" style="font-size:11.0pt;">Senior Vice President<br>
  PRUDENTIAL CAPITAL GROUP<br>
  Four Embarcadero Center, Suite 2700<br>
  San Francisco, California 94111<br>
  Telephone:</font><font size="1" style="font-size:3.0pt;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </font><font size="2" style="font-size:11.0pt;">(415)
  291-5060<br>
  Facsimile:</font><font size="1" style="font-size:3.0pt;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </font><font size="2" style="font-size:11.0pt;">(415) 421-6233</font></p>
  </td>
  <td width="50%" valign="top" style="padding:0in 0in 0in 0in;width:50.0%;">
  <p style="margin:0in 0in .0001pt;"><b><font size="2" face="Times New Roman" style="font-size:11.0pt;font-weight:bold;">Charles
  Senner<br>
  </font></b><font size="2" style="font-size:11.0pt;">PRUDENTIAL CAPITAL GROUP<br>
  100 Mulberry Street<br>
  7 Gateway Center Four<br>
  Newark, New Jersey 07102<br>
  Telephone:</font><font size="1" style="font-size:3.0pt;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </font><font size="2" style="font-size:11.0pt;">(973) 802-6660<br>
  Facsimile:</font><font size="1" style="font-size:3.0pt;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </font><font size="2" style="font-size:11.0pt;">(973) 624-6432</font></p>
  </td>
 </tr>
 <tr>
  <td width="50%" valign="top" style="padding:0in 0in 0in 0in;width:50.0%;">
  <p style="margin:0in 0in .0001pt;"><b><font size="2" face="Times New Roman" style="font-size:11.0pt;font-weight:bold;">&nbsp;</font></b></p>
  </td>
  <td width="50%" valign="top" style="padding:0in 0in 0in 0in;width:50.0%;">
  <p style="margin:0in 0in .0001pt;"><b><font size="2" face="Times New Roman" style="font-size:11.0pt;font-weight:bold;">&nbsp;</font></b></p>
  </td>
 </tr>
 <tr>
  <td width="50%" valign="top" style="padding:0in 0in 0in 0in;width:50.0%;">
  <p style="margin:0in 0in .0001pt;"><b><font size="2" face="Times New Roman" style="font-size:11.0pt;font-weight:bold;">James
  McCrane<br>
  </font></b><font size="2" style="font-size:11.0pt;">PRUDENTIAL CAPITAL GROUP<br>
  100 Mulberry Street<br>
  7 Gateway Center Four<br>
  Newark, New Jersey 07102<br>
  Telephone:</font><font size="1" style="font-size:3.0pt;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </font><font size="2" style="font-size:11.0pt;">(973) 802-4222<br>
  Facsimile:</font><font size="1" style="font-size:3.0pt;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </font><font size="2" style="font-size:11.0pt;">(973) 624-6432</font></p>
  </td>
  <td width="50%" valign="top" style="padding:0in 0in 0in 0in;width:50.0%;">
  <p style="margin:0in 0in .0001pt;text-align:justify;"><b><font size="2" face="Times New Roman" style="font-size:11.0pt;font-weight:bold;">Mathew
  R. Douglass</font></b></p>
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:11.0pt;">Senior Vice President<br>
  PRUDENTIAL CAPITAL GROUP<br>
  2029 Century Park East, Suite 710<br>
  Los Angeles, California 90067<br>
  Telephone:</font><font size="1" style="font-size:3.0pt;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </font><font size="2" style="font-size:11.0pt;">(310)
  295-5012<br>
  Facsimile:</font><font size="1" style="font-size:3.0pt;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </font><font size="2" style="font-size:11.0pt;">(310)
  295-5019</font></p>
  </td>
 </tr>
 <tr>
  <td width="50%" valign="top" style="padding:0in 0in 0in 0in;width:50.0%;">
  <p style="margin:0in 0in .0001pt;"><b><font size="2" face="Times New Roman" style="font-size:11.0pt;font-weight:bold;">&nbsp;</font></b></p>
  </td>
  <td width="50%" valign="top" style="padding:0in 0in 0in 0in;width:50.0%;">
  <p style="margin:0in 0in .0001pt;text-align:justify;"><b><font size="2" face="Times New Roman" style="font-size:11.0pt;font-weight:bold;">&nbsp;</font></b></p>
  </td>
 </tr>
 <tr>
  <td width="50%" valign="top" style="padding:0in 0in 0in 0in;width:50.0%;">
  <p style="margin:0in 0in .0001pt;text-align:justify;"><b><font size="2" face="Times New Roman" style="font-size:11.0pt;font-weight:bold;">David
  Nguyen</font></b></p>
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:11.0pt;">Vice President<br>
  PRUDENTIAL CAPITAL GROUP<br>
  Four Embarcadero Center, Suite 2700<br>
  San Francisco, California 94111<br>
  Telephone:</font><font size="1" style="font-size:3.0pt;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </font><font size="2" style="font-size:11.0pt;">(415)
  291-5071<br>
  Facsimile:</font><font size="1" style="font-size:3.0pt;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </font><font size="2" style="font-size:11.0pt;">(415)
  421-6233</font></p>
  </td>
  <td width="50%" valign="top" style="padding:0in 0in 0in 0in;width:50.0%;">
  <p style="margin:0in 0in .0001pt;text-align:justify;"><b><font size="2" face="Times New Roman" style="font-size:11.0pt;font-weight:bold;">Cornelia
  Cheng</font></b></p>
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:11.0pt;">Vice President<br>
  PRUDENTIAL CAPITAL GROUP<br>
  2029 Century Park East, Suite 710<br>
  Los Angeles, California 90067<br>
  Telephone:</font><font size="1" style="font-size:3.0pt;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </font><font size="2" style="font-size:11.0pt;">(310)
  295-5013<br>
  Facsimile:</font><font size="1" style="font-size:3.0pt;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </font><font size="2" style="font-size:11.0pt;">(310)
  295-5019</font></p>
  </td>
 </tr>
</table>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">&nbsp;</font></b></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">&nbsp;</font></b></p>

<p style="margin:0in 0in .0001pt;"><b><i><u><font size="2" face="Times New Roman" style="font-size:11.0pt;font-style:italic;font-weight:bold;">Authorized
Officers for the Company</font></u></i></b></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<table border="0" cellspacing="0" cellpadding="0" width="100%" style="border-collapse:collapse;width:100.0%;">
 <tr style="page-break-inside:avoid;">
  <td width="50%" valign="top" style="padding:0in 0in 0in 0in;width:50.0%;">
  <p style="margin:0in 0in .0001pt;text-align:justify;"><b><font size="2" face="Times New Roman" style="font-size:11.0pt;font-weight:bold;">Wendy
  Simpson</font></b></p>
  <p style="margin:0in 0in .0001pt;text-align:justify;"><font size="2" face="Times New Roman" style="font-size:11.0pt;">CEO
  and President</font></p>
  <p style="margin:0in 0in .0001pt;text-align:justify;"><font size="2" face="Times New Roman" style="font-size:11.0pt;">LTC
  Properties, Inc.</font></p>
  <p style="margin:0in 0in .0001pt;text-align:justify;"><font size="2" face="Times New Roman" style="font-size:11.0pt;">31365
  Oak Crest Drive, Suite 200</font></p>
  <p style="margin:0in 0in .0001pt;text-align:justify;"><font size="2" face="Times New Roman" style="font-size:11.0pt;">Westlake
  Village, California 91361</font></p>
  <p style="margin:0in 0in .0001pt;text-align:justify;"><font size="2" face="Times New Roman" style="font-size:11.0pt;">Telephone:&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (805) 981-8655</font></p>
  <p style="margin:0in 0in .0001pt;text-align:justify;"><font size="2" face="Times New Roman" style="font-size:11.0pt;">Facsimile:&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (805) 981-8663</font></p>
  </td>
  <td width="50%" valign="top" style="padding:0in 0in 0in 0in;width:50.0%;">
  <p style="margin:0in 0in .0001pt;text-align:justify;"><b><font size="2" face="Times New Roman" style="font-size:11.0pt;font-weight:bold;">Pamela
  Shelley-Kessler</font></b></p>
  <p style="margin:0in 0in .0001pt;text-align:justify;"><font size="2" face="Times New Roman" style="font-size:11.0pt;">SVP
  &amp; Chief Financial Officer</font></p>
  <p style="margin:0in 0in .0001pt;text-align:justify;"><font size="2" face="Times New Roman" style="font-size:11.0pt;">LTC
  Properties, Inc.</font></p>
  <p style="margin:0in 0in .0001pt;text-align:justify;"><font size="2" face="Times New Roman" style="font-size:11.0pt;">31365
  Oak Crest Drive, Suite 200</font></p>
  <p style="margin:0in 0in .0001pt;text-align:justify;"><font size="2" face="Times New Roman" style="font-size:11.0pt;">Westlake
  Village, California 91361</font></p>
  <p style="margin:0in 0in .0001pt;text-align:justify;"><font size="2" face="Times New Roman" style="font-size:11.0pt;">Telephone:&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (805) 981-8648</font></p>
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:11.0pt;">Facsimile:&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (805) 981-8663</font></p>
  </td>
 </tr>
</table>

<p style="margin:0in 0in .0001pt;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">&nbsp;</font></p>

<div style="margin:0in 0in .0001pt;"><hr size="3" width="100%" noshade color="#010101" align="left"></div>

</div>
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<div>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><b><font size="3" face="Times New Roman" style="font-size:12.0pt;font-weight:bold;">SCHEDULE
A</font></b></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">&nbsp;</font></b></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><b><font size="3" face="Times New Roman" style="font-size:12.0pt;font-weight:bold;">INFORMATION
RELATING TO SERIES A NOTE PURCHASERS</font></b></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">&nbsp;</font></b></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><b><font size="3" face="Times New Roman" style="font-size:12.0pt;font-weight:bold;">PURCHASER
SCHEDULE</font></b></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">&nbsp;</font></b></p>

<div style="margin:0in 0in .0001pt;"><hr size="3" width="100%" noshade color="#010101" align="left"></div>

</div>
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<div style="font-family:Times New Roman;">

<table border="1" cellspacing="0" cellpadding="0" width="100%" style="border:none;border-collapse:collapse;width:100.0%;">
 <tr>
  <td width="40%" valign="top" style="border:none;border-bottom:double windowtext 2.25pt;padding:0in 0in 0in 0in;width:40.28%;">
  <p style="margin:0in 0in .0001pt .05in;"><b><font size="1" face="Times New Roman" style="font-size:9.0pt;font-weight:bold;">&nbsp;</font></b></p>
  </td>
  <td width="59%" valign="top" style="border:none;border-bottom:double windowtext 2.25pt;padding:0in 0in 0in 0in;width:59.72%;">
  <p style="margin:0in 0in .0001pt .05in;"><b><font size="1" face="Times New Roman" style="font-size:9.0pt;font-weight:bold;">&nbsp;</font></b></p>
  </td>
 </tr>
 <tr>
  <td width="40%" valign="top" style="border-bottom:none;border-left:double windowtext 1.5pt;border-right:solid windowtext 1.0pt;border-top:none;padding:0in 0in 0in 0in;width:40.28%;">
  <p style="margin:0in 0in .0001pt .05in;"><b><font size="1" face="Times New Roman" style="font-size:5.0pt;font-weight:bold;">&nbsp;</font></b></p>
  </td>
  <td width="59%" valign="top" style="border:none;border-right:double windowtext 1.5pt;padding:0in 0in 0in 0in;width:59.72%;">
  <p style="margin:0in 0in .0001pt .05in;"><b><font size="1" face="Times New Roman" style="font-size:5.0pt;font-weight:bold;">&nbsp;</font></b></p>
  </td>
 </tr>
 <tr>
  <td width="40%" valign="top" style="border-bottom:none;border-left:double windowtext 1.5pt;border-right:solid windowtext 1.0pt;border-top:none;padding:0in 0in 0in 0in;width:40.28%;">
  <p style="margin:0in 0in .0001pt .05in;"><b><font size="1" face="Times New Roman" style="font-size:9.0pt;font-weight:bold;">Purchaser
  Name</font></b></p>
  </td>
  <td width="59%" valign="top" style="border:none;border-right:double windowtext 1.5pt;padding:0in 0in 0in 0in;width:59.72%;">
  <p style="margin:0in 0in .0001pt .05in;"><b><font size="1" face="Times New Roman" style="font-size:9.0pt;font-weight:bold;">THE PRUDENTIAL INSURANCE COMPANY OF AMERICA</font></b></p>
  </td>
 </tr>
 <tr>
  <td width="40%" valign="top" style="border-bottom:solid windowtext 1.0pt;border-left:double windowtext 1.5pt;border-right:solid windowtext 1.0pt;border-top:none;padding:0in 0in 0in 0in;width:40.28%;">
  <p style="margin:0in 0in .0001pt .05in;"><b><font size="1" face="Times New Roman" style="font-size:5.0pt;font-weight:bold;">&nbsp;</font></b></p>
  </td>
  <td width="59%" valign="top" style="border-bottom:solid windowtext 1.0pt;border-left:none;border-right:double windowtext 1.5pt;border-top:none;padding:0in 0in 0in 0in;width:59.72%;">
  <p style="margin:0in 0in .0001pt .05in;"><b><font size="1" face="Times New Roman" style="font-size:5.0pt;font-weight:bold;">&nbsp;</font></b></p>
  </td>
 </tr>
 <tr>
  <td width="40%" valign="top" style="border-bottom:none;border-left:double windowtext 1.5pt;border-right:solid windowtext 1.0pt;border-top:none;padding:0in 0in 0in 0in;width:40.28%;">
  <p style="margin:0in 0in .0001pt .05in;"><font size="1" face="Times New Roman" style="font-size:5.0pt;">&nbsp;</font></p>
  </td>
  <td width="59%" valign="top" style="border:none;border-right:double windowtext 1.5pt;padding:0in 0in 0in 0in;width:59.72%;">
  <p style="margin:0in 0in .0001pt .05in;"><font size="1" face="Times New Roman" style="font-size:5.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="40%" valign="top" style="border-bottom:none;border-left:double windowtext 1.5pt;border-right:solid windowtext 1.0pt;border-top:none;padding:0in 0in 0in 0in;width:40.28%;">
  <p style="margin:0in 0in .0001pt .05in;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">Name
  in Which Notes are to be Registered</font></p>
  </td>
  <td width="59%" valign="top" style="border:none;border-right:double windowtext 1.5pt;padding:0in 0in 0in 0in;width:59.72%;">
  <p style="margin:0in 0in .0001pt .05in;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">THE PRUDENTIAL INSURANCE COMPANY OF AMERICA</font></p>
  </td>
 </tr>
 <tr>
  <td width="40%" valign="top" style="border-bottom:solid windowtext 1.0pt;border-left:double windowtext 1.5pt;border-right:solid windowtext 1.0pt;border-top:none;padding:0in 0in 0in 0in;width:40.28%;">
  <p style="margin:0in 0in .0001pt .05in;"><font size="1" face="Times New Roman" style="font-size:5.0pt;">&nbsp;</font></p>
  </td>
  <td width="59%" valign="top" style="border-bottom:solid windowtext 1.0pt;border-left:none;border-right:double windowtext 1.5pt;border-top:none;padding:0in 0in 0in 0in;width:59.72%;">
  <p style="margin:0in 0in .0001pt .05in;"><font size="1" face="Times New Roman" style="font-size:5.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="40%" valign="top" style="border-bottom:none;border-left:double windowtext 1.5pt;border-right:solid windowtext 1.0pt;border-top:none;padding:0in 0in 0in 0in;width:40.28%;">
  <p style="margin:0in 0in .0001pt .05in;text-align:justify;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">Note Registration Numbers;</font></p>
  <p style="margin:0in 0in .0001pt .05in;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">Original
  Principal Amounts</font></p>
  </td>
  <td width="59%" valign="top" style="border:none;border-right:double windowtext 1.5pt;padding:0in 0in 0in 0in;width:59.72%;">
  <p style="margin:0in 0in .0001pt .05in;text-align:justify;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  <p style="margin:0in 0in .0001pt .05in;text-align:justify;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">A-1-1&nbsp;&nbsp;&nbsp;&nbsp; $25,000,000</font></p>
  <p style="margin:0in 0in .0001pt .05in;text-align:justify;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="40%" valign="top" style="border-bottom:solid windowtext 1.0pt;border-left:double windowtext 1.5pt;border-right:solid windowtext 1.0pt;border-top:none;padding:0in 0in 0in 0in;width:40.28%;">
  <p style="margin:0in 0in .0001pt .05in;text-align:justify;"><font size="1" face="Times New Roman" style="font-size:5.0pt;">&nbsp;</font></p>
  </td>
  <td width="59%" valign="top" style="border-bottom:solid windowtext 1.0pt;border-left:none;border-right:double windowtext 1.5pt;border-top:none;padding:0in 0in 0in 0in;width:59.72%;">
  <p style="margin:0in 0in .0001pt .05in;text-align:justify;"><font size="1" face="Times New Roman" style="font-size:5.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="40%" valign="top" style="border-bottom:none;border-left:double windowtext 1.5pt;border-right:solid windowtext 1.0pt;border-top:none;padding:0in 0in 0in 0in;width:40.28%;">
  <p style="margin:0in 0in .0001pt .05in;text-align:justify;"><font size="1" face="Times New Roman" style="font-size:5.0pt;">&nbsp;</font></p>
  </td>
  <td width="59%" valign="top" style="border:none;border-right:double windowtext 1.5pt;padding:0in 0in 0in 0in;width:59.72%;">
  <p style="margin:0in 0in .0001pt .05in;text-align:justify;"><font size="1" face="Times New Roman" style="font-size:5.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="40%" valign="top" style="border-bottom:solid windowtext 1.0pt;border-left:double windowtext 1.5pt;border-right:solid windowtext 1.0pt;border-top:none;padding:0in 0in 0in 0in;width:40.28%;">
  <p style="margin:0in 0in .0001pt .05in;text-align:justify;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">Payment on Account of Notes</font></p>
  <p style="margin:0in 0in .0001pt .05in;text-align:justify;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  <p style="margin:0in 0in .0001pt .05in;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">&nbsp;</font></p>
  </td>
  <td width="59%" valign="top" style="border-bottom:solid windowtext 1.0pt;border-left:none;border-right:double windowtext 1.5pt;border-top:none;padding:0in 0in 0in 0in;width:59.72%;">
  <p style="margin:0in 0in .0001pt .05in;text-align:justify;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">Method:&nbsp;
  Federal Funds Wire Transfer</font></p>
  <p style="margin:0in 0in .0001pt .05in;text-align:justify;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  <p style="margin:0in 0in .0001pt .05in;text-align:justify;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">Account Information:&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; JPMorgan Chase Bank</font></p>
  <p style="margin:0in 0in .0001pt .05in;text-align:justify;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; New
  York, NY</font></p>
  <p style="margin:0in 0in .0001pt .05in;text-align:justify;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; ABA
  No.:&nbsp; 021-000-021</font></p>
  <p style="margin:0in 0in .0001pt .05in;text-align:justify;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  <p style="margin:0in 0in .0001pt .05in;text-align:justify;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">Account No.:&nbsp;
  P86188 (please do not include spaces</font></p>
  <p style="margin:0in 0in .0001pt .05in;text-align:justify;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">Account Name:&nbsp;
  Prudential Managed Portfolio</font></p>
  <p style="margin:0in 0in .0001pt .05in;text-align:justify;"><font size="1" face="Times New Roman" style="font-size:5.0pt;">&nbsp;</font></p>
  <p style="margin:0in 0in .0001pt .05in;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">Re:&nbsp; (See &#147;Accompanying
  information&#148; below)</font></p>
  <p style="margin:0in 0in .0001pt .05in;"><font size="1" face="Times New Roman" style="font-size:5.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="40%" valign="top" style="border-bottom:none;border-left:double windowtext 1.5pt;border-right:solid windowtext 1.0pt;border-top:none;padding:0in 0in 0in 0in;width:40.28%;">
  <p style="margin:0in 0in .0001pt .05in;"><font size="1" face="Times New Roman" style="font-size:5.0pt;">&nbsp;</font></p>
  </td>
  <td width="59%" valign="top" style="border:none;border-right:double windowtext 1.5pt;padding:0in 0in 0in 0in;width:59.72%;">
  <p style="margin:0in 0in .0001pt .05in;text-align:justify;"><font size="1" face="Times New Roman" style="font-size:5.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="40%" valign="top" style="border-bottom:none;border-left:double windowtext 1.5pt;border-right:solid windowtext 1.0pt;border-top:none;padding:0in 0in 0in 0in;width:40.28%;">
  <p style="margin:0in 0in .0001pt .05in;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">Accompanying
  Information</font></p>
  </td>
  <td width="59%" valign="top" style="border:none;border-right:double windowtext 1.5pt;padding:0in 0in 0in 0in;width:59.72%;">
  <p style="margin:0in 0in .0001pt .05in;text-align:justify;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">Name of Company:&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; LTC Properties, Inc.</font></p>
  <p style="margin:0in 0in .0001pt .05in;text-align:justify;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">Description of
  Security: &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 5.26% Series A-1 Senior
  Notes due 7/14/15</font></p>
  <p style="margin:0in 0in .0001pt .05in;text-align:justify;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">PPN:&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 502175 A*3</font></p>
  <p style="margin:0in 0in .0001pt .05in;text-align:justify;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  <p style="margin:0in 0in .0001pt .05in;text-align:justify;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  <p style="margin:0in 0in .0001pt .05in;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">Each such wire transfer
  shall also set forth the due date and application (as among principal,
  interest, and Make-Whole Amount, if any) of the payment being made.</font></p>
  </td>
 </tr>
 <tr>
  <td width="40%" valign="top" style="border-bottom:solid windowtext 1.0pt;border-left:double windowtext 1.5pt;border-right:solid windowtext 1.0pt;border-top:none;padding:0in 0in 0in 0in;width:40.28%;">
  <p style="margin:0in 0in .0001pt .05in;"><font size="1" face="Times New Roman" style="font-size:5.0pt;">&nbsp;</font></p>
  </td>
  <td width="59%" valign="top" style="border-bottom:solid windowtext 1.0pt;border-left:none;border-right:double windowtext 1.5pt;border-top:none;padding:0in 0in 0in 0in;width:59.72%;">
  <p style="margin:0in 0in .0001pt .05in;text-align:justify;"><font size="1" face="Times New Roman" style="font-size:5.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="40%" valign="top" style="border-bottom:none;border-left:double windowtext 1.5pt;border-right:solid windowtext 1.0pt;border-top:none;padding:0in 0in 0in 0in;width:40.28%;">
  <p style="margin:0in 0in .0001pt .05in;"><font size="1" face="Times New Roman" style="font-size:5.0pt;">&nbsp;</font></p>
  </td>
  <td width="59%" valign="top" style="border:none;border-right:double windowtext 1.5pt;padding:0in 0in 0in 0in;width:59.72%;">
  <p style="margin:0in 0in .0001pt .05in;text-align:justify;"><font size="1" face="Times New Roman" style="font-size:5.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="40%" valign="top" style="border-bottom:solid windowtext 1.0pt;border-left:double windowtext 1.5pt;border-right:solid windowtext 1.0pt;border-top:none;padding:0in 0in 0in 0in;width:40.28%;">
  <p style="margin:0in 0in .0001pt .05in;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">Address
  for Notices Related to Payments</font></p>
  </td>
  <td width="59%" valign="top" style="border-bottom:solid windowtext 1.0pt;border-left:none;border-right:double windowtext 1.5pt;border-top:none;padding:0in 0in 0in 0in;width:59.72%;">
  <p style="margin:0in 0in .0001pt .05in;text-align:justify;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">The Prudential Insurance Company of America</font></p>
  <p style="margin:0in 0in .0001pt .05in;text-align:justify;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">c/o Investment Operations Group</font></p>
  <p style="margin:0in 0in .0001pt .05in;text-align:justify;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">Gateway Center Two, 10</font><font size="1" style="font-size:6.0pt;position:relative;top:-2.0pt;">th</font><font size="1" style="font-size:9.0pt;">&nbsp;Floor</font></p>
  <p style="margin:0in 0in .0001pt .05in;text-align:justify;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">100 Mulberry Street</font></p>
  <p style="margin:0in 0in .0001pt .05in;text-align:justify;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">Newark, NJ 07102-4077</font></p>
  <p style="margin:0in 0in .0001pt .05in;text-align:justify;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">Attn:&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Manager,
  Billings and Collections</font></p>
  <p style="margin:0in 0in .0001pt .05in;text-align:justify;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  <p style="margin:0in 0in .0001pt .05in;text-align:justify;"><u><font size="1" face="Times New Roman" style="font-size:9.0pt;">with telephonic prepayment notices to</font></u><font size="1" style="font-size:9.0pt;">:</font></p>
  <p style="margin:0in 0in .0001pt .05in;text-align:justify;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  <p style="margin:0in 0in .0001pt .05in;text-align:justify;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">Manager, Trade Management Group</font></p>
  <p style="margin:0in 0in .0001pt .05in;text-align:justify;"><font size="1" face="Times New Roman" style="font-size:5.0pt;">&nbsp;</font></p>
  <p style="margin:0in 0in .0001pt .05in;text-align:justify;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">Tel:&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (973)
  367-3141</font></p>
  <p style="margin:0in 0in .0001pt .05in;text-align:justify;"><font size="1" face="Times New Roman" style="font-size:5.0pt;">&nbsp;</font></p>
  <p style="margin:0in 0in .0001pt .05in;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">Fax:&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (800) 224-2278</font></p>
  <p style="margin:0in 0in .0001pt .05in;"><font size="1" face="Times New Roman" style="font-size:5.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="40%" valign="top" style="border-bottom:none;border-left:double windowtext 1.5pt;border-right:solid windowtext 1.0pt;border-top:none;padding:0in 0in 0in 0in;width:40.28%;">
  <p style="margin:0in 0in .0001pt .05in;"><font size="1" face="Times New Roman" style="font-size:5.0pt;">&nbsp;</font></p>
  </td>
  <td width="59%" valign="top" style="border:none;border-right:double windowtext 1.5pt;padding:0in 0in 0in 0in;width:59.72%;">
  <p style="margin:0in 0in .0001pt .05in;text-align:justify;"><font size="1" face="Times New Roman" style="font-size:5.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="40%" valign="top" style="border-bottom:solid windowtext 1.0pt;border-left:double windowtext 1.5pt;border-right:solid windowtext 1.0pt;border-top:none;padding:0in 0in 0in 0in;width:40.28%;">
  <p style="margin:0in 0in .0001pt .05in;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">Address
  for All Other Notices</font></p>
  </td>
  <td width="59%" valign="top" style="border-bottom:solid windowtext 1.0pt;border-left:none;border-right:double windowtext 1.5pt;border-top:none;padding:0in 0in 0in 0in;width:59.72%;">
  <p style="margin:0in 0in .0001pt .05in;text-align:justify;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">The Prudential Insurance Company of America </font></p>
  <p style="margin:0in 0in .0001pt .05in;text-align:justify;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">c/o Prudential Capital Group</font></p>
  <p style="margin:0in 0in .0001pt .05in;text-align:justify;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">Four Embarcadero Center, Suite 2700 </font></p>
  <p style="margin:0in 0in .0001pt .05in;text-align:justify;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">San Francisco, California 94111-4180 </font></p>
  <p style="margin:0in 0in .0001pt .05in;text-align:justify;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">Attn:&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Managing
  Director </font></p>
  <p style="margin:0in 0in .0001pt .05in;text-align:justify;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  <p style="margin:0in 0in .0001pt .05in;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">Fax:&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 415-421-6233</font></p>
  <p style="margin:0in 0in .0001pt .05in;"><font size="1" face="Times New Roman" style="font-size:3.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="40%" valign="top" style="border-bottom:solid windowtext 1.0pt;border-left:double windowtext 1.5pt;border-right:solid windowtext 1.0pt;border-top:none;padding:0in 0in 0in 0in;width:40.28%;">
  <p style="margin:0in 0in .0001pt .05in;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">Other
  Instructions</font></p>
  </td>
  <td width="59%" valign="top" style="border-bottom:solid windowtext 1.0pt;border-left:none;border-right:double windowtext 1.5pt;border-top:none;padding:0in 0in 0in 0in;width:59.72%;">
  <p style="margin:0in 0in .0001pt .05in;text-align:justify;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">THE PRUDENTIAL INSURANCE COMPANY OF AMERICA</font></p>
  <p style="margin:0in 0in .0001pt .05in;text-align:justify;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  <p style="margin:0in 0in .0001pt .05in;text-align:justify;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">By:
  ________________________________</font></p>
  <p style="margin:0in 0in .0001pt .05in;text-align:justify;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">Name:&nbsp;&nbsp;&nbsp; </font></p>
  <p style="margin:0in 0in .0001pt .05in;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">Title:&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Vice President</font></p>
  <p style="margin:0in 0in .0001pt .05in;"><font size="1" face="Times New Roman" style="font-size:5.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="40%" valign="top" style="border-bottom:none;border-left:double windowtext 1.5pt;border-right:solid windowtext 1.0pt;border-top:none;padding:0in 0in 0in 0in;width:40.28%;">
  <p style="margin:0in 0in .0001pt .05in;"><font size="1" face="Times New Roman" style="font-size:5.0pt;">&nbsp;</font></p>
  </td>
  <td width="59%" valign="top" style="border:none;border-right:double windowtext 1.5pt;padding:0in 0in 0in 0in;width:59.72%;">
  <p style="margin:0in 0in .0001pt .05in;text-align:justify;"><font size="1" face="Times New Roman" style="font-size:5.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="40%" valign="top" style="border-bottom:solid windowtext 1.0pt;border-left:double windowtext 1.5pt;border-right:solid windowtext 1.0pt;border-top:none;padding:0in 0in 0in 0in;width:40.28%;">
  <p style="margin:0in 0in .0001pt .05in;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">Instructions
  re Delivery of Notes</font></p>
  </td>
  <td width="59%" valign="top" style="border-bottom:solid windowtext 1.0pt;border-left:none;border-right:double windowtext 1.5pt;border-top:none;padding:0in 0in 0in 0in;width:59.72%;">
  <p style="margin:0in 0in .0001pt .05in;text-align:justify;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">Prudential Capital Group</font></p>
  <p style="margin:0in 0in .0001pt .05in;text-align:justify;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">Four Embarcadero Center, Suite 2700 </font></p>
  <p style="margin:0in 0in .0001pt .05in;text-align:justify;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">San Francisco, CA 94111-4180 </font></p>
  <p style="margin:0in 0in .0001pt .05in;"><font size="1" face="Times New Roman" style="font-size:8.0pt;">Attn:
  &nbsp;&nbsp;&nbsp;&nbsp; James Evert, Esq.</font></p>
  <p style="margin:0in 0in .0001pt .05in;"><font size="1" face="Times New Roman" style="font-size:5.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="40%" valign="top" style="border-bottom:none;border-left:double windowtext 1.5pt;border-right:solid windowtext 1.0pt;border-top:none;padding:0in 0in 0in 0in;width:40.28%;">
  <p style="margin:0in 0in .0001pt .05in;"><font size="1" face="Times New Roman" style="font-size:5.0pt;">&nbsp;</font></p>
  </td>
  <td width="59%" valign="top" style="border:none;border-right:double windowtext 1.5pt;padding:0in 0in 0in 0in;width:59.72%;">
  <p style="margin:0in 0in .0001pt .05in;"><font size="1" face="Times New Roman" style="font-size:5.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="40%" valign="top" style="border-bottom:none;border-left:double windowtext 1.5pt;border-right:solid windowtext 1.0pt;border-top:none;padding:0in 0in 0in 0in;width:40.28%;">
  <p style="margin:0in 0in .0001pt .05in;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">Tax
  Identification Number</font></p>
  </td>
  <td width="59%" valign="top" style="border:none;border-right:double windowtext 1.5pt;padding:0in 0in 0in 0in;width:59.72%;">
  <p style="margin:0in 0in .0001pt .05in;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">22-1211670</font></p>
  </td>
 </tr>
 <tr>
  <td width="40%" valign="top" style="border-bottom:double windowtext 1.5pt;border-left:double windowtext 1.5pt;border-right:solid windowtext 1.0pt;border-top:none;padding:0in 0in 0in 0in;width:40.28%;">
  <p style="margin:0in 0in .0001pt .05in;"><font size="1" face="Times New Roman" style="font-size:5.0pt;">&nbsp;</font></p>
  </td>
  <td width="59%" valign="top" style="border-bottom:double windowtext 1.5pt;border-left:none;border-right:double windowtext 1.5pt;border-top:none;padding:0in 0in 0in 0in;width:59.72%;">
  <p style="margin:0in 0in .0001pt .05in;"><font size="1" face="Times New Roman" style="font-size:5.0pt;">&nbsp;</font></p>
  </td>
 </tr>
</table>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<div style="margin:0in 0in .0001pt;"><hr size="3" width="100%" noshade color="#010101" align="left"></div>

</div>
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<div style="font-family:Times New Roman;">

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<table border="1" cellspacing="0" cellpadding="0" width="100%" style="border:none;border-collapse:collapse;width:100.0%;">
 <tr>
  <td width="40%" valign="top" style="border:none;border-bottom:double windowtext 2.25pt;padding:0in 0in 0in 0in;width:40.2%;">
  <p style="margin:0in 0in .0001pt .05in;"><b><font size="1" face="Times New Roman" style="font-size:9.0pt;font-weight:bold;">&nbsp;</font></b></p>
  </td>
  <td width="59%" style="border:none;border-bottom:double windowtext 2.25pt;padding:0in 0in 0in 0in;width:59.8%;">
  <p style="margin:0in 0in .0001pt .05in;"><b><font size="1" face="Times New Roman" style="font-size:9.0pt;font-weight:bold;">&nbsp;</font></b></p>
  </td>
 </tr>
 <tr>
  <td width="40%" valign="top" style="border-bottom:none;border-left:double windowtext 1.5pt;border-right:solid windowtext 1.0pt;border-top:none;padding:0in 0in 0in 0in;width:40.2%;">
  <p style="margin:0in 0in .0001pt .05in;"><b><font size="1" face="Times New Roman" style="font-size:5.0pt;font-weight:bold;">&nbsp;</font></b></p>
  </td>
  <td width="59%" style="border:none;border-right:double windowtext 1.5pt;padding:0in 0in 0in 0in;width:59.8%;">
  <p style="margin:0in 0in .0001pt .05in;"><b><font size="1" face="Times New Roman" style="font-size:5.0pt;font-weight:bold;">&nbsp;</font></b></p>
  </td>
 </tr>
 <tr>
  <td width="40%" valign="top" style="border-bottom:none;border-left:double windowtext 1.5pt;border-right:solid windowtext 1.0pt;border-top:none;padding:0in 0in 0in 0in;width:40.2%;">
  <p style="margin:0in 0in .0001pt .05in;"><b><font size="1" face="Times New Roman" style="font-size:9.0pt;font-weight:bold;">Purchaser Name</font></b></p>
  </td>
  <td width="59%" style="border:none;border-right:double windowtext 1.5pt;padding:0in 0in 0in 0in;width:59.8%;">
  <p style="margin:0in 0in .0001pt .05in;"><b><font size="1" face="Times New Roman" style="font-size:9.0pt;font-weight:bold;">PRUCO LIFE INSURANCE COMPANY</font></b></p>
  </td>
 </tr>
 <tr>
  <td width="40%" valign="top" style="border-bottom:solid windowtext 1.0pt;border-left:double windowtext 1.5pt;border-right:solid windowtext 1.0pt;border-top:none;padding:0in 0in 0in 0in;width:40.2%;">
  <p style="margin:0in 0in .0001pt .05in;"><b><font size="1" face="Times New Roman" style="font-size:5.0pt;font-weight:bold;">&nbsp;</font></b></p>
  </td>
  <td width="59%" style="border-bottom:solid windowtext 1.0pt;border-left:none;border-right:double windowtext 1.5pt;border-top:none;padding:0in 0in 0in 0in;width:59.8%;">
  <p style="margin:0in 0in .0001pt .05in;"><b><font size="1" face="Times New Roman" style="font-size:5.0pt;font-weight:bold;">&nbsp;</font></b></p>
  </td>
 </tr>
 <tr>
  <td width="40%" valign="top" style="border-bottom:none;border-left:double windowtext 1.5pt;border-right:solid windowtext 1.0pt;border-top:none;padding:0in 0in 0in 0in;width:40.2%;">
  <p style="margin:0in 0in .0001pt .05in;"><font size="1" face="Times New Roman" style="font-size:5.0pt;">&nbsp;</font></p>
  </td>
  <td width="59%" valign="top" style="border:none;border-right:double windowtext 1.5pt;padding:0in 0in 0in 0in;width:59.8%;">
  <p style="margin:0in 0in .0001pt .05in;"><font size="1" face="Times New Roman" style="font-size:5.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="40%" valign="top" style="border-bottom:none;border-left:double windowtext 1.5pt;border-right:solid windowtext 1.0pt;border-top:none;padding:0in 0in 0in 0in;width:40.2%;">
  <p style="margin:0in 0in .0001pt .05in;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">Name
  in Which Notes are to be Registered</font></p>
  </td>
  <td width="59%" valign="top" style="border:none;border-right:double windowtext 1.5pt;padding:0in 0in 0in 0in;width:59.8%;">
  <p style="margin:0in 0in .0001pt .05in;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">PRUCO LIFE INSURANCE COMPANY</font></p>
  </td>
 </tr>
 <tr>
  <td width="40%" valign="top" style="border-bottom:solid windowtext 1.0pt;border-left:double windowtext 1.5pt;border-right:solid windowtext 1.0pt;border-top:none;padding:0in 0in 0in 0in;width:40.2%;">
  <p style="margin:0in 0in .0001pt .05in;"><font size="1" face="Times New Roman" style="font-size:5.0pt;">&nbsp;</font></p>
  </td>
  <td width="59%" valign="top" style="border-bottom:solid windowtext 1.0pt;border-left:none;border-right:double windowtext 1.5pt;border-top:none;padding:0in 0in 0in 0in;width:59.8%;">
  <p style="margin:0in 0in .0001pt .05in;"><font size="1" face="Times New Roman" style="font-size:5.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="40%" valign="top" style="border-bottom:none;border-left:double windowtext 1.5pt;border-right:solid windowtext 1.0pt;border-top:none;padding:0in 0in 0in 0in;width:40.2%;">
  <p style="margin:0in 0in .0001pt .05in;text-align:justify;"><font size="1" face="Times New Roman" style="font-size:5.0pt;">&nbsp;</font></p>
  </td>
  <td width="59%" valign="top" style="border:none;border-right:double windowtext 1.5pt;padding:0in 0in 0in 0in;width:59.8%;">
  <p style="margin:0in 0in .0001pt .05in;text-align:justify;"><font size="1" face="Times New Roman" style="font-size:5.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="40%" valign="top" style="border-bottom:none;border-left:double windowtext 1.5pt;border-right:solid windowtext 1.0pt;border-top:none;padding:0in 0in 0in 0in;width:40.2%;">
  <p style="margin:0in 0in .0001pt .05in;text-align:justify;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">Note Registration Numbers;</font></p>
  <p style="margin:0in 0in .0001pt .05in;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">Principal
  Amounts</font></p>
  </td>
  <td width="59%" valign="top" style="border:none;border-right:double windowtext 1.5pt;padding:0in 0in 0in 0in;width:59.8%;">
  <p style="margin:0in 0in .0001pt .05in;text-align:justify;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  <p style="margin:0in 0in .0001pt .05in;text-align:justify;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">A-2-1&nbsp;&nbsp;&nbsp;&nbsp; $12,500,000</font></p>
  <p style="margin:0in 0in .0001pt .05in;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="40%" valign="top" style="border-bottom:none;border-left:double windowtext 1.5pt;border-right:solid windowtext 1.0pt;border-top:solid windowtext 1.0pt;padding:0in 0in 0in 0in;width:40.2%;">
  <p style="margin:0in 0in .0001pt .05in;text-align:justify;"><font size="1" face="Times New Roman" style="font-size:5.0pt;">&nbsp;</font></p>
  </td>
  <td width="59%" valign="top" style="border-bottom:none;border-left:none;border-right:double windowtext 1.5pt;border-top:solid windowtext 1.0pt;padding:0in 0in 0in 0in;width:59.8%;">
  <p style="margin:0in 0in .0001pt .05in;text-align:justify;"><font size="1" face="Times New Roman" style="font-size:5.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="40%" valign="top" style="border-bottom:solid windowtext 1.0pt;border-left:double windowtext 1.5pt;border-right:solid windowtext 1.0pt;border-top:none;padding:0in 0in 0in 0in;width:40.2%;">
  <p style="margin:0in 0in .0001pt .05in;text-align:justify;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">Payment on Account of Note</font></p>
  <p style="margin:0in 0in .0001pt .05in;text-align:justify;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  <p style="margin:0in 0in .0001pt .05in;text-align:justify;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  <p style="margin:0in 0in .0001pt .05in;text-align:justify;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  <p style="margin:0in 0in .0001pt .05in;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">&nbsp;</font></p>
  </td>
  <td width="59%" valign="top" style="border-bottom:solid windowtext 1.0pt;border-left:none;border-right:double windowtext 1.5pt;border-top:none;padding:0in 0in 0in 0in;width:59.8%;">
  <p style="margin:0in 0in .0001pt .05in;text-align:justify;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">Method:&nbsp; Federal Funds Wire Transfer</font></p>
  <p style="margin:0in 0in .0001pt .05in;text-align:justify;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  <p style="margin:0in 0in .0001pt .05in;text-align:justify;"><a name="OLE_LINK12"><font size="1" face="Times New Roman" style="font-size:9.0pt;">Account Information:&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; JPMorgan Chase Bank</font></a></p>
  <p style="margin:0in 0in .0001pt .05in;text-align:justify;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; New York, NY</font></p>
  <p style="margin:0in 0in .0001pt .05in;text-align:justify;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; ABA No.:&nbsp; 021-000-021</font></p>
  <p style="margin:0in 0in .0001pt .05in;text-align:justify;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">Account No.:&nbsp; P86192 (please do not include spaces)</font></p>
  <p style="margin:0in 0in .0001pt .05in;text-align:justify;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">Account
  Name:&nbsp; Pruco Life Private Placement</font></p>
  <p style="margin:0in 0in .0001pt .05in;text-align:justify;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  <p style="margin:0in 0in .0001pt .05in;text-align:justify;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  <p style="margin:0in 0in .0001pt .05in;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">Re:&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (see &#147;Accompanying Information&#148;
  below)</font></p>
  <p style="margin:0in 0in .0001pt .05in;"><font size="1" face="Times New Roman" style="font-size:3.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="40%" valign="top" style="border-bottom:none;border-left:double windowtext 1.5pt;border-right:solid windowtext 1.0pt;border-top:none;padding:0in 0in 0in 0in;width:40.2%;">
  <p style="margin:0in 0in .0001pt .05in;"><font size="1" face="Times New Roman" style="font-size:5.0pt;">&nbsp;</font></p>
  </td>
  <td width="59%" valign="top" style="border:none;border-right:double windowtext 1.5pt;padding:0in 0in 0in 0in;width:59.8%;">
  <p style="margin:0in 0in .0001pt .05in;text-align:justify;"><font size="1" face="Times New Roman" style="font-size:5.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="40%" valign="top" style="border-bottom:solid windowtext 1.0pt;border-left:double windowtext 1.5pt;border-right:solid windowtext 1.0pt;border-top:none;padding:0in 0in 0in 0in;width:40.2%;">
  <p style="margin:0in 0in .0001pt .05in;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">Accompanying Information</font></p>
  </td>
  <td width="59%" valign="top" style="border-bottom:solid windowtext 1.0pt;border-left:none;border-right:double windowtext 1.5pt;border-top:none;padding:0in 0in 0in 0in;width:59.8%;">
  <p style="margin:0in 0in .0001pt .05in;text-align:justify;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">Name of Company:&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; LTC Properties, Inc.</font></p>
  <p style="margin:0in 0in .0001pt .05in;text-align:justify;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">Description of Security: &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 5.74% Series A-2 Senior Notes due
  1/14/19</font></p>
  <p style="margin:0in 0in .0001pt .05in;text-align:justify;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">PPN:&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 502175
  A@1</font></p>
  <p style="margin:0in 0in .0001pt .05in;text-align:justify;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  <p style="margin:0in 0in .0001pt .05in;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">Each such wire transfer shall also set forth
  the due date and application (as among principal, interest, and Make-Whole
  Amount, if any) of the payment being made.</font></p>
  <p style="margin:0in 0in .0001pt .05in;"><font size="1" face="Times New Roman" style="font-size:5.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="40%" valign="top" style="border-bottom:none;border-left:double windowtext 1.5pt;border-right:solid windowtext 1.0pt;border-top:none;padding:0in 0in 0in 0in;width:40.2%;">
  <p style="margin:0in 0in .0001pt .05in;"><font size="1" face="Times New Roman" style="font-size:5.0pt;">&nbsp;</font></p>
  </td>
  <td width="59%" valign="top" style="border:none;border-right:double windowtext 1.5pt;padding:0in 0in 0in 0in;width:59.8%;">
  <p style="margin:0in 0in .0001pt .05in;text-align:justify;"><font size="1" face="Times New Roman" style="font-size:5.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="40%" valign="top" style="border-bottom:solid windowtext 1.0pt;border-left:double windowtext 1.5pt;border-right:solid windowtext 1.0pt;border-top:none;padding:0in 0in 0in 0in;width:40.2%;">
  <p style="margin:0in 0in .0001pt .05in;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">Address for Notices Related to Payments</font></p>
  </td>
  <td width="59%" valign="top" style="border-bottom:solid windowtext 1.0pt;border-left:none;border-right:double windowtext 1.5pt;border-top:none;padding:0in 0in 0in 0in;width:59.8%;">
  <p style="margin:0in 0in .0001pt .05in;text-align:justify;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">Pruco
  Life Insurance Company</font></p>
  <p style="margin:0in 0in .0001pt .05in;text-align:justify;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">c/o
  The Prudential Insurance Company of America</font></p>
  <p style="margin:0in 0in .0001pt .05in;text-align:justify;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">c/o
  Investment Operations Group</font></p>
  <p style="margin:0in 0in .0001pt .05in;text-align:justify;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">Gateway
  Center Two, 10</font><font size="1" style="font-size:6.0pt;position:relative;top:-2.0pt;">th</font><font size="1" style="font-size:9.0pt;">&nbsp;Floor</font></p>
  <p style="margin:0in 0in .0001pt .05in;text-align:justify;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">100
  Mulberry Street</font></p>
  <p style="margin:0in 0in .0001pt .05in;text-align:justify;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">Newark,
  NJ 07102-4077</font></p>
  <p style="margin:0in 0in .0001pt .05in;text-align:justify;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">Attn:&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Manager, Billings and Collections</font></p>
  <p style="margin:0in 0in .0001pt .05in;text-align:justify;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  <p style="margin:0in 0in .0001pt .05in;text-align:justify;"><u><font size="1" face="Times New Roman" style="font-size:9.0pt;">with telephonic prepayment notices to</font></u><font size="1" style="font-size:9.0pt;">:</font></p>
  <p style="margin:0in 0in .0001pt .05in;text-align:justify;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  <p style="margin:0in 0in .0001pt .05in;text-align:justify;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">Manager,
  Trade Management Group</font></p>
  <p style="margin:0in 0in .0001pt .05in;text-align:justify;"><font size="1" face="Times New Roman" style="font-size:5.0pt;">&nbsp;</font></p>
  <p style="margin:0in 0in .0001pt .05in;text-align:justify;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">Tel:&nbsp;&nbsp;&nbsp; (973)
  367-3141</font></p>
  <p style="margin:0in 0in .0001pt .05in;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">Fax:&nbsp;&nbsp; (800) 224-2278</font></p>
  <p style="margin:0in 0in .0001pt .05in;"><font size="1" face="Times New Roman" style="font-size:5.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="40%" valign="top" style="border-bottom:none;border-left:double windowtext 1.5pt;border-right:solid windowtext 1.0pt;border-top:none;padding:0in 0in 0in 0in;width:40.2%;">
  <p style="margin:0in 0in .0001pt .05in;"><font size="1" face="Times New Roman" style="font-size:5.0pt;">&nbsp;</font></p>
  </td>
  <td width="59%" valign="top" style="border:none;border-right:double windowtext 1.5pt;padding:0in 0in 0in 0in;width:59.8%;">
  <p style="margin:0in 0in .0001pt .05in;text-align:justify;"><font size="1" face="Times New Roman" style="font-size:5.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="40%" valign="top" style="border-bottom:solid windowtext 1.0pt;border-left:double windowtext 1.5pt;border-right:solid windowtext 1.0pt;border-top:none;padding:0in 0in 0in 0in;width:40.2%;">
  <p style="margin:0in 0in .0001pt .05in;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">Address for All Other Notices</font></p>
  </td>
  <td width="59%" valign="top" style="border-bottom:solid windowtext 1.0pt;border-left:none;border-right:double windowtext 1.5pt;border-top:none;padding:0in 0in 0in 0in;width:59.8%;">
  <p style="margin:0in 0in .0001pt .05in;text-align:justify;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">The
  Prudential Insurance Company of America </font></p>
  <p style="margin:0in 0in .0001pt .05in;text-align:justify;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">c/o
  Prudential Capital Group</font></p>
  <p style="margin:0in 0in .0001pt .05in;text-align:justify;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">Four
  Embarcadero Center, Suite 2700 </font></p>
  <p style="margin:0in 0in .0001pt .05in;text-align:justify;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">San
  Francisco, California 94111-4180 </font></p>
  <p style="margin:0in 0in .0001pt .05in;text-align:justify;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">Attn:&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Managing Director </font></p>
  <p style="margin:0in 0in .0001pt .05in;text-align:justify;"><font size="1" face="Times New Roman" style="font-size:5.0pt;">&nbsp;</font></p>
  <p style="margin:0in 0in .0001pt .05in;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">Fax:&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 415-421-6233</font></p>
  <p style="margin:0in 0in .0001pt .05in;"><font size="1" face="Times New Roman" style="font-size:5.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="40%" valign="top" style="border-bottom:none;border-left:double windowtext 1.5pt;border-right:solid windowtext 1.0pt;border-top:none;padding:0in 0in 0in 0in;width:40.2%;">
  <p style="margin:0in 0in .0001pt .05in;"><font size="1" face="Times New Roman" style="font-size:5.0pt;">&nbsp;</font></p>
  </td>
  <td width="59%" valign="top" style="border:none;border-right:double windowtext 1.5pt;padding:0in 0in 0in 0in;width:59.8%;">
  <p style="margin:0in 0in .0001pt .05in;text-align:justify;"><font size="1" face="Times New Roman" style="font-size:5.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="40%" valign="top" style="border-bottom:none;border-left:double windowtext 1.5pt;border-right:solid windowtext 1.0pt;border-top:none;padding:0in 0in 0in 0in;width:40.2%;">
  <p style="margin:0in 0in .0001pt .05in;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">Other Instructions</font></p>
  </td>
  <td width="59%" valign="top" style="border:none;border-right:double windowtext 1.5pt;padding:0in 0in 0in 0in;width:59.8%;">
  <p style="margin:0in 0in .0001pt .05in;text-align:justify;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">PRUCO LIFE INSURANCE COMPANY</font></p>
  <p style="margin:0in 0in .0001pt .05in;text-align:justify;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  <p style="margin:0in 0in .0001pt .05in;text-align:justify;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">By:
  ________________________________</font></p>
  <p style="margin:0in 0in .0001pt .05in;text-align:justify;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">Name:</font></p>
  <p style="margin:0in 0in .0001pt .05in;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">Title:</font></p>
  <p style="margin:0in 0in .0001pt .05in;"><font size="1" face="Times New Roman" style="font-size:3.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="40%" valign="top" style="border-bottom:solid windowtext 1.0pt;border-left:double windowtext 1.5pt;border-right:solid windowtext 1.0pt;border-top:none;padding:0in 0in 0in 0in;width:40.2%;">
  <p style="margin:0in 0in .0001pt .05in;"><font size="1" face="Times New Roman" style="font-size:5.0pt;">&nbsp;</font></p>
  </td>
  <td width="59%" valign="top" style="border-bottom:solid windowtext 1.0pt;border-left:none;border-right:double windowtext 1.5pt;border-top:none;padding:0in 0in 0in 0in;width:59.8%;">
  <p style="margin:0in 0in .0001pt .05in;text-align:justify;"><font size="1" face="Times New Roman" style="font-size:5.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="40%" valign="top" style="border-bottom:none;border-left:double windowtext 1.5pt;border-right:solid windowtext 1.0pt;border-top:none;padding:0in 0in 0in 0in;width:40.2%;">
  <p style="margin:0in 0in .0001pt .05in;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">Instructions re Delivery of Notes</font></p>
  </td>
  <td width="59%" valign="top" style="border:none;border-right:double windowtext 1.5pt;padding:0in 0in 0in 0in;width:59.8%;">
  <p style="margin:0in 0in .0001pt .05in;text-align:justify;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">Prudential
  Capital Group</font></p>
  <p style="margin:0in 0in .0001pt .05in;text-align:justify;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">Four
  Embarcadero Center, Suite 2700 </font></p>
  <p style="margin:0in 0in .0001pt .05in;text-align:justify;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">San
  Francisco, CA 94111-4180 </font></p>
  <p style="margin:0in 0in .0001pt .05in;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">Attn: &nbsp;&nbsp;&nbsp;&nbsp; James Evert, Esq.</font></p>
  <p style="margin:0in 0in .0001pt .05in;"><font size="1" face="Times New Roman" style="font-size:5.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="40%" valign="top" style="border-bottom:solid windowtext 1.0pt;border-left:double windowtext 1.5pt;border-right:solid windowtext 1.0pt;border-top:none;padding:0in 0in 0in 0in;width:40.2%;">
  <p style="margin:0in 0in .0001pt .05in;"><font size="1" face="Times New Roman" style="font-size:5.0pt;">z</font></p>
  </td>
  <td width="59%" valign="top" style="border-bottom:solid windowtext 1.0pt;border-left:none;border-right:double windowtext 1.5pt;border-top:none;padding:0in 0in 0in 0in;width:59.8%;">
  <p style="margin:0in 0in .0001pt .05in;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="40%" valign="top" style="border-bottom:double windowtext 1.5pt;border-left:double windowtext 1.5pt;border-right:solid windowtext 1.0pt;border-top:none;padding:0in 0in 0in 0in;width:40.2%;">
  <p style="margin:0in 0in .0001pt .05in;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">Tax Identification Number</font></p>
  </td>
  <td width="59%" valign="top" style="border-bottom:double windowtext 1.5pt;border-left:none;border-right:double windowtext 1.5pt;border-top:none;padding:0in 0in 0in 0in;width:59.8%;">
  <p style="margin:0in 0in .0001pt .05in;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">22-1944557</font></p>
  <p style="margin:0in 0in .0001pt .05in;"><font size="1" face="Times New Roman" style="font-size:5.0pt;">&nbsp;</font></p>
  </td>
 </tr>
</table>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

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  <td width="40%" valign="top" style="border:none;border-bottom:double windowtext 2.25pt;padding:0in 0in 0in 0in;width:40.2%;">
  <p style="margin:0in 0in .0001pt .05in;"><b><font size="1" face="Times New Roman" style="font-size:9.0pt;font-weight:bold;">&nbsp;</font></b></p>
  </td>
  <td width="59%" style="border:none;border-bottom:double windowtext 2.25pt;padding:0in 0in 0in 0in;width:59.8%;">
  <p style="margin:0in 0in .0001pt .05in;"><b><font size="1" face="Times New Roman" style="font-size:9.0pt;font-weight:bold;">&nbsp;</font></b></p>
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  <td width="40%" valign="top" style="border-bottom:none;border-left:double windowtext 1.5pt;border-right:solid windowtext 1.0pt;border-top:none;padding:0in 0in 0in 0in;width:40.2%;">
  <p style="margin:0in 0in .0001pt .05in;"><b><font size="1" face="Times New Roman" style="font-size:5.0pt;font-weight:bold;">&nbsp;</font></b></p>
  </td>
  <td width="59%" style="border:none;border-right:double windowtext 1.5pt;padding:0in 0in 0in 0in;width:59.8%;">
  <p style="margin:0in 0in .0001pt .05in;"><b><font size="1" face="Times New Roman" style="font-size:5.0pt;font-weight:bold;">&nbsp;</font></b></p>
  </td>
 </tr>
 <tr>
  <td width="40%" valign="top" style="border-bottom:none;border-left:double windowtext 1.5pt;border-right:solid windowtext 1.0pt;border-top:none;padding:0in 0in 0in 0in;width:40.2%;">
  <p style="margin:0in 0in .0001pt .05in;"><b><font size="1" face="Times New Roman" style="font-size:9.0pt;font-weight:bold;">Purchaser Name</font></b></p>
  </td>
  <td width="59%" style="border:none;border-right:double windowtext 1.5pt;padding:0in 0in 0in 0in;width:59.8%;">
  <p style="margin:0in 0in .0001pt .05in;"><b><font size="1" face="Times New Roman" style="font-size:9.0pt;font-weight:bold;">UNITED OF OMAHA LIFE INSURANCE
  COMPANY</font></b></p>
  </td>
 </tr>
 <tr>
  <td width="40%" valign="top" style="border-bottom:solid windowtext 1.0pt;border-left:double windowtext 1.5pt;border-right:solid windowtext 1.0pt;border-top:none;padding:0in 0in 0in 0in;width:40.2%;">
  <p style="margin:0in 0in .0001pt .05in;"><font size="1" face="Times New Roman" style="font-size:5.0pt;">&nbsp;</font></p>
  </td>
  <td width="59%" valign="top" style="border-bottom:solid windowtext 1.0pt;border-left:none;border-right:double windowtext 1.5pt;border-top:none;padding:0in 0in 0in 0in;width:59.8%;">
  <p style="margin:0in 0in .0001pt .05in;"><font size="1" face="Times New Roman" style="font-size:5.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="40%" valign="top" style="border-bottom:none;border-left:double windowtext 1.5pt;border-right:solid windowtext 1.0pt;border-top:none;padding:0in 0in 0in 0in;width:40.2%;">
  <p style="margin:0in 0in .0001pt .05in;"><font size="1" face="Times New Roman" style="font-size:5.0pt;">&nbsp;</font></p>
  </td>
  <td width="59%" valign="top" style="border:none;border-right:double windowtext 1.5pt;padding:0in 0in 0in 0in;width:59.8%;">
  <p style="margin:0in 0in .0001pt .05in;"><font size="1" face="Times New Roman" style="font-size:5.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="40%" valign="top" style="border-bottom:solid windowtext 1.0pt;border-left:double windowtext 1.5pt;border-right:solid windowtext 1.0pt;border-top:none;padding:0in 0in 0in 0in;width:40.2%;">
  <p style="margin:0in 0in .0001pt .05in;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">Name
  in Which Notes are to be Registered</font></p>
  </td>
  <td width="59%" valign="top" style="border-bottom:solid windowtext 1.0pt;border-left:none;border-right:double windowtext 1.5pt;border-top:none;padding:0in 0in 0in 0in;width:59.8%;">
  <p style="margin:0in 0in .0001pt .05in;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">UNITED OF OMAHA LIFE INSURANCE COMPANY</font></p>
  <p style="margin:0in 0in .0001pt .05in;"><font size="1" face="Times New Roman" style="font-size:5.0pt;text-transform:uppercase;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="40%" valign="top" style="border-bottom:none;border-left:double windowtext 1.5pt;border-right:solid windowtext 1.0pt;border-top:none;padding:0in 0in 0in 0in;width:40.2%;">
  <p style="margin:0in 0in .0001pt .05in;text-align:justify;"><font size="1" face="Times New Roman" style="font-size:5.0pt;">&nbsp;</font></p>
  </td>
  <td width="59%" valign="top" style="border:none;border-right:double windowtext 1.5pt;padding:0in 0in 0in 0in;width:59.8%;">
  <p style="margin:0in 0in .0001pt .05in;text-align:justify;"><font size="1" face="Times New Roman" style="font-size:5.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="40%" valign="top" style="border-bottom:solid windowtext 1.0pt;border-left:double windowtext 1.5pt;border-right:solid windowtext 1.0pt;border-top:none;padding:0in 0in 0in 0in;width:40.2%;">
  <p style="margin:0in 0in .0001pt .05in;text-align:justify;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">Note Registration Numbers;</font></p>
  <p style="margin:0in 0in .0001pt .05in;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">Principal
  Amounts</font></p>
  </td>
  <td width="59%" valign="top" style="border-bottom:solid windowtext 1.0pt;border-left:none;border-right:double windowtext 1.5pt;border-top:none;padding:0in 0in 0in 0in;width:59.8%;">
  <p style="margin:0in 0in .0001pt .05in;text-align:justify;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  <p style="margin:0in 0in .0001pt .05in;text-align:justify;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">A-2-2&nbsp;&nbsp;&nbsp;&nbsp; $12,500,000</font></p>
  <p style="margin:0in 0in .0001pt .05in;text-align:justify;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  <p style="margin:0in 0in .0001pt .05in;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="40%" valign="top" style="border-bottom:none;border-left:double windowtext 1.5pt;border-right:solid windowtext 1.0pt;border-top:none;padding:0in 0in 0in 0in;width:40.2%;">
  <p style="margin:0in 0in .0001pt .05in;text-align:justify;"><font size="1" face="Times New Roman" style="font-size:5.0pt;">&nbsp;</font></p>
  </td>
  <td width="59%" valign="top" style="border:none;border-right:double windowtext 1.5pt;padding:0in 0in 0in 0in;width:59.8%;">
  <p style="margin:0in 0in .0001pt .05in;text-align:justify;"><font size="1" face="Times New Roman" style="font-size:5.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="40%" valign="top" style="border-bottom:solid windowtext 1.0pt;border-left:double windowtext 1.5pt;border-right:solid windowtext 1.0pt;border-top:none;padding:0in 0in 0in 0in;width:40.2%;">
  <p style="margin:0in 0in .0001pt .05in;text-align:justify;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">Payment on Account of Note</font></p>
  <p style="margin:0in 0in .0001pt .05in;text-align:justify;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  <p style="margin:0in 0in .0001pt .05in;text-align:justify;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Method</font></p>
  <p style="margin:0in 0in .0001pt .05in;text-align:justify;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  <p style="margin:0in 0in .0001pt .05in;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Account
  Information</font></p>
  </td>
  <td width="59%" valign="top" style="border-bottom:solid windowtext 1.0pt;border-left:none;border-right:double windowtext 1.5pt;border-top:none;padding:0in 0in 0in 0in;width:59.8%;">
  <p style="margin:0in 0in .0001pt .05in;text-align:justify;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">&nbsp;</font></p>
  <p style="margin:0in 0in .0001pt .05in;text-align:justify;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">&nbsp;</font></p>
  <p style="margin:0in 0in .0001pt .05in;text-align:justify;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">Federal
  Funds Wire Transfer</font></p>
  <p style="margin:0in 0in .0001pt .05in;text-align:justify;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  <p style="margin:0in 0in .0001pt .05in;text-align:justify;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">JPMorgan
  Chase Bank</font></p>
  <p style="margin:0in 0in .0001pt .05in;text-align:justify;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">ABA
  No.:&nbsp; 021-000-021</font></p>
  <p style="margin:0in 0in .0001pt .05in;text-align:justify;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">Private
  Income Processing</font></p>
  <p style="margin:0in 0in .0001pt .05in;text-align:justify;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">For
  Credit to account:&nbsp; 900-9000200</font></p>
  <p style="margin:0in 0in .0001pt .05in;text-align:justify;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">For
  further credit to Account Name:&nbsp; United
  of Omaha Life Insurance Company</font></p>
  <p style="margin:0in 0in .0001pt .05in;text-align:justify;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">For
  further credit to Account Number:&nbsp;
  G09588</font></p>
  <p style="margin:0in 0in .0001pt .05in;text-align:justify;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  <p style="margin:0in 0in .0001pt .05in;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">Re:&nbsp; (See &#147;Accompanying information&#148; below)</font></p>
  <p style="margin:0in 0in .0001pt .05in;"><font size="1" face="Times New Roman" style="font-size:3.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="40%" valign="top" style="border-bottom:none;border-left:double windowtext 1.5pt;border-right:solid windowtext 1.0pt;border-top:none;padding:0in 0in 0in 0in;width:40.2%;">
  <p style="margin:0in 0in .0001pt .05in;"><font size="1" face="Times New Roman" style="font-size:5.0pt;">&nbsp;</font></p>
  </td>
  <td width="59%" valign="top" style="border:none;border-right:double windowtext 1.5pt;padding:0in 0in 0in 0in;width:59.8%;">
  <p style="margin:0in 0in .0001pt .05in;text-align:justify;"><font size="1" face="Times New Roman" style="font-size:5.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="40%" valign="top" style="border-bottom:solid windowtext 1.0pt;border-left:double windowtext 1.5pt;border-right:solid windowtext 1.0pt;border-top:none;padding:0in 0in 0in 0in;width:40.2%;">
  <p style="margin:0in 0in .0001pt .05in;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">Accompanying Information</font></p>
  </td>
  <td width="59%" valign="top" style="border-bottom:solid windowtext 1.0pt;border-left:none;border-right:double windowtext 1.5pt;border-top:none;padding:0in 0in 0in 0in;width:59.8%;">
  <p style="margin:0in 0in .0001pt .05in;text-align:justify;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  <p style="margin:0in 0in .0001pt .05in;text-align:justify;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">Name of Company:&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; LTC Properties, Inc.</font></p>
  <p style="margin:0in 0in .0001pt .05in;text-align:justify;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">Description of Security: &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 5.74% Series A-2 Senior Notes due
  1/14/19</font></p>
  <p style="margin:0in 0in .0001pt .05in;text-align:justify;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">PPN:&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 502175
  A@1</font></p>
  <p style="margin:0in 0in .0001pt .05in;text-align:justify;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  <p style="margin:0in 0in .0001pt .05in;text-align:justify;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">Each such wire transfer shall also set forth
  the due date and application (as among principal, interest, and Make-Whole
  Amount, if any) of the payment being made.</font></p>
  <p style="margin:0in 0in .0001pt .05in;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="40%" valign="top" style="border-bottom:solid windowtext 1.0pt;border-left:double windowtext 1.5pt;border-right:solid windowtext 1.0pt;border-top:none;padding:0in 0in 0in 0in;width:40.2%;">
  <p style="margin:0in 0in .0001pt .05in;"><font size="1" face="Times New Roman" style="font-size:5.0pt;">&nbsp;</font></p>
  </td>
  <td width="59%" valign="top" style="border-bottom:solid windowtext 1.0pt;border-left:none;border-right:double windowtext 1.5pt;border-top:none;padding:0in 0in 0in 0in;width:59.8%;">
  <p style="margin:0in 0in .0001pt .05in;text-align:justify;"><font size="1" face="Times New Roman" style="font-size:5.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="40%" valign="top" style="border-bottom:solid windowtext 1.0pt;border-left:double windowtext 1.5pt;border-right:solid windowtext 1.0pt;border-top:none;padding:0in 0in 0in 0in;width:40.2%;">
  <p style="margin:0in 0in .0001pt .05in;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">Address for Notices Related to Payments</font></p>
  </td>
  <td width="59%" valign="top" style="border-bottom:solid windowtext 1.0pt;border-left:none;border-right:double windowtext 1.5pt;border-top:none;padding:0in 0in 0in 0in;width:59.8%;">
  <p style="margin:0in 0in .0001pt .05in;text-align:justify;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">JPMorgan
  Chase Bank</font></p>
  <p style="margin:0in 0in .0001pt .05in;text-align:justify;"><font size="1" face="Times New Roman" style="font-size:5.0pt;">&nbsp;</font></p>
  <p style="margin:0in 0in .0001pt .05in;text-align:justify;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">14201
  Dallas Parkway - 13th Floor</font></p>
  <p style="margin:0in 0in .0001pt .05in;text-align:justify;"><font size="1" face="Times New Roman" style="font-size:5.0pt;">&nbsp;</font></p>
  <p style="margin:0in 0in .0001pt .05in;text-align:justify;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">Dallas,
  TX 75254-2917</font></p>
  <p style="margin:0in 0in .0001pt .05in;text-align:justify;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  <p style="margin:0in 0in .0001pt .05in;text-align:justify;"><font size="1" face="Times New Roman" style="font-size:5.0pt;">&nbsp;</font></p>
  <p style="margin:0in 0in .0001pt .05in;text-align:justify;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">Attn:&nbsp; Income Processing - G. Ruiz </font></p>
  <p style="margin:0in 0in .0001pt .05in;text-align:justify;"><font size="1" face="Times New Roman" style="font-size:5.0pt;">&nbsp;</font></p>
  <p style="margin:0in 0in .0001pt .05in;text-align:justify;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">a/c:&nbsp; G09588</font></p>
  <p style="margin:0in 0in .0001pt .05in;"><font size="1" face="Times New Roman" style="font-size:5.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="40%" valign="top" style="border-bottom:none;border-left:double windowtext 1.5pt;border-right:solid windowtext 1.0pt;border-top:none;padding:0in 0in 0in 0in;width:40.2%;">
  <p style="margin:0in 0in .0001pt .05in;"><font size="1" face="Times New Roman" style="font-size:5.0pt;">&nbsp;</font></p>
  </td>
  <td width="59%" valign="top" style="border:none;border-right:double windowtext 1.5pt;padding:0in 0in 0in 0in;width:59.8%;">
  <p style="margin:0in 0in .0001pt .05in;text-align:justify;"><font size="1" face="Times New Roman" style="font-size:5.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="40%" valign="top" style="border-bottom:solid windowtext 1.0pt;border-left:double windowtext 1.5pt;border-right:solid windowtext 1.0pt;border-top:none;padding:0in 0in 0in 0in;width:40.2%;">
  <p style="margin:0in 0in .0001pt .05in;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">Address for All Other Notices</font></p>
  </td>
  <td width="59%" valign="top" style="border-bottom:solid windowtext 1.0pt;border-left:none;border-right:double windowtext 1.5pt;border-top:none;padding:0in 0in 0in 0in;width:59.8%;">
  <p style="margin:0in 0in .0001pt .05in;text-align:justify;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">Prudential
  Private Placement Investors, L.P.</font></p>
  <p style="margin:0in 0in .0001pt .05in;text-align:justify;"><font size="1" face="Times New Roman" style="font-size:5.0pt;">&nbsp;</font></p>
  <p style="margin:0in 0in .0001pt .05in;text-align:justify;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">c/o
  Prudential Capital Group</font></p>
  <p style="margin:0in 0in .0001pt .05in;text-align:justify;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">Four
  Embarcadero Center, Suite 2700</font></p>
  <p style="margin:0in 0in .0001pt .05in;text-align:justify;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">San
  Francisco, California 94111-4180</font></p>
  <p style="margin:0in 0in .0001pt .05in;text-align:justify;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">Attn:&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Managing Director </font></p>
  <p style="margin:0in 0in .0001pt .05in;text-align:justify;"><font size="1" face="Times New Roman" style="font-size:5.0pt;">&nbsp;</font></p>
  <p style="margin:0in 0in .0001pt .05in;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">Fax:&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 415-421-6233</font></p>
  <p style="margin:0in 0in .0001pt .05in;"><font size="1" face="Times New Roman" style="font-size:4.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="40%" valign="top" style="border-bottom:none;border-left:double windowtext 1.5pt;border-right:solid windowtext 1.0pt;border-top:none;padding:0in 0in 0in 0in;width:40.2%;">
  <p style="margin:0in 0in .0001pt .05in;"><font size="1" face="Times New Roman" style="font-size:5.0pt;">&nbsp;</font></p>
  </td>
  <td width="59%" valign="top" style="border:none;border-right:double windowtext 1.5pt;padding:0in 0in 0in 0in;width:59.8%;">
  <p style="margin:0in 0in .0001pt .05in;text-align:justify;"><font size="1" face="Times New Roman" style="font-size:5.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="40%" valign="top" style="border-bottom:double windowtext 1.5pt;border-left:double windowtext 1.5pt;border-right:solid windowtext 1.0pt;border-top:none;padding:0in 0in 0in 0in;width:40.2%;">
  <p style="margin:0in 0in .0001pt .05in;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">Other Instructions</font></p>
  </td>
  <td width="59%" valign="top" style="border-bottom:double windowtext 1.5pt;border-left:none;border-right:double windowtext 1.5pt;border-top:none;padding:0in 0in 0in 0in;width:59.8%;">
  <p style="margin:0in 0in .0001pt .05in;text-align:justify;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">UNITED OF OMAHA LIFE INSURANCE COMPANY</font></p>
  <p style="margin:0in 0in .0001pt .05in;text-align:justify;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  <p style="margin:0in 0in .0001pt .05in;text-align:justify;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  <p style="margin:0in 0in .0001pt .05in;text-align:justify;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">By:&nbsp; Prudential Private Placement Investors,
  L.P., asset manager</font></p>
  <p style="margin:0in 0in .0001pt .05in;text-align:justify;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  <p style="margin:0in 0in .0001pt .05in;text-align:justify;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">By:&nbsp; Prudential Private Placement Investors,
  Inc., general partner</font></p>
  <p style="margin:0in 0in .0001pt .05in;text-align:justify;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  <p style="margin:0in 0in .0001pt .05in;text-align:justify;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">By:
  ________________________________</font></p>
  <p style="margin:0in 0in .0001pt .05in;text-align:justify;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">Name:</font></p>
  <p style="margin:0in 0in .0001pt .05in;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">Title:</font></p>
  <p style="margin:0in 0in .0001pt .05in;"><font size="1" face="Times New Roman" style="font-size:5.0pt;">&nbsp;</font></p>
  </td>
 </tr>
</table>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">Schedule A-1<a name="PB_1_113213_2077"></a></font></p>

<div style="margin:0in 0in .0001pt;"><hr size="3" width="100%" noshade color="#010101" align="left"></div>

</div>
<!-- SEQ.=1,FOLIO='Schedule A-1',FILE='C:\JMS\sjayara\10-12718-1\task4204252\12718-1-ki-13.htm',USER='105898',CD='Jul 28 19:09 2010' -->


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<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<table border="1" cellspacing="0" cellpadding="0" width="100%" style="border:none;border-collapse:collapse;width:100.0%;">
 <tr>
  <td width="40%" valign="top" style="border:none;border-bottom:double windowtext 2.25pt;padding:0in 0in 0in 0in;width:40.2%;">
  <p style="margin:0in 0in .0001pt;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">&nbsp;</font></p>
  </td>
  <td width="59%" valign="top" style="border:none;border-bottom:double windowtext 2.25pt;padding:0in 0in 0in 0in;width:59.8%;">
  <p style="margin:0in 0in .0001pt;text-align:justify;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="40%" valign="top" style="border-bottom:none;border-left:double windowtext 1.5pt;border-right:solid windowtext 1.0pt;border-top:none;padding:0in 0in 0in 0in;width:40.2%;">
  <p style="margin:0in 0in .0001pt .05in;"><b><font size="1" face="Times New Roman" style="font-size:5.0pt;font-weight:bold;">&nbsp;</font></b></p>
  </td>
  <td width="59%" style="border:none;border-right:double windowtext 1.5pt;padding:0in 0in 0in 0in;width:59.8%;">
  <p style="margin:0in 0in .0001pt .05in;"><b><font size="1" face="Times New Roman" style="font-size:5.0pt;font-weight:bold;">&nbsp;</font></b></p>
  </td>
 </tr>
 <tr>
  <td width="40%" valign="top" style="border-bottom:none;border-left:double windowtext 1.5pt;border-right:solid windowtext 1.0pt;border-top:none;padding:0in 0in 0in 0in;width:40.2%;">
  <p style="margin:0in 0in .0001pt .05in;"><b><font size="1" face="Times New Roman" style="font-size:9.0pt;font-weight:bold;">Purchaser Name</font></b></p>
  </td>
  <td width="59%" style="border:none;border-right:double windowtext 1.5pt;padding:0in 0in 0in 0in;width:59.8%;">
  <p style="margin:0in 0in .0001pt .05in;"><b><font size="1" face="Times New Roman" style="font-size:9.0pt;font-weight:bold;">UNITED OF OMAHA LIFE INSURANCE
  COMPANY</font></b></p>
  </td>
 </tr>
 <tr>
  <td width="40%" valign="top" style="border-bottom:solid windowtext 1.0pt;border-left:double windowtext 1.5pt;border-right:solid windowtext 1.0pt;border-top:none;padding:0in 0in 0in 0in;width:40.2%;">
  <p style="margin:0in 0in .0001pt .05in;"><b><font size="1" face="Times New Roman" style="font-size:5.0pt;font-weight:bold;">&nbsp;</font></b></p>
  </td>
  <td width="59%" style="border-bottom:solid windowtext 1.0pt;border-left:none;border-right:double windowtext 1.5pt;border-top:none;padding:0in 0in 0in 0in;width:59.8%;">
  <p style="margin:0in 0in .0001pt .05in;"><b><font size="1" face="Times New Roman" style="font-size:5.0pt;font-weight:bold;">&nbsp;</font></b></p>
  </td>
 </tr>
 <tr>
  <td width="40%" valign="top" style="border-bottom:none;border-left:double windowtext 1.5pt;border-right:solid windowtext 1.0pt;border-top:none;padding:0in 0in 0in 0in;width:40.2%;">
  <p style="margin:0in 0in .0001pt .05in;"><font size="1" face="Times New Roman" style="font-size:5.0pt;">&nbsp;</font></p>
  </td>
  <td width="59%" valign="top" style="border:none;border-right:double windowtext 1.5pt;padding:0in 0in 0in 0in;width:59.8%;">
  <p style="margin:0in 0in .0001pt .05in;text-align:justify;"><font size="1" face="Times New Roman" style="font-size:5.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="40%" valign="top" style="border-bottom:solid windowtext 1.0pt;border-left:double windowtext 1.5pt;border-right:solid windowtext 1.0pt;border-top:none;padding:0in 0in 0in 0in;width:40.2%;">
  <p style="margin:0in 0in .0001pt .05in;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">Instructions re Delivery of Notes</font></p>
  </td>
  <td width="59%" valign="top" style="border-bottom:solid windowtext 1.0pt;border-left:none;border-right:double windowtext 1.5pt;border-top:none;padding:0in 0in 0in 0in;width:59.8%;">
  <p style="margin:0in 0in .0001pt .05in;text-align:justify;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">(a)&nbsp; Send physical security by nationwide
  overnight delivery service to:</font></p>
  <p style="margin:0in 0in .0001pt .05in;text-align:justify;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  <p style="margin:0in 0in .0001pt .05in;text-align:justify;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">JPMorgan
  Chase Bank</font></p>
  <p style="margin:0in 0in .0001pt .05in;text-align:justify;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">4
  New York Plaza</font></p>
  <p style="margin:0in 0in .0001pt .05in;text-align:justify;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">Ground
  Floor Receive Window</font></p>
  <p style="margin:0in 0in .0001pt .05in;text-align:justify;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">New
  York, NY 10004</font></p>
  <p style="margin:0in 0in .0001pt .05in;text-align:justify;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  <p style="margin:0in 0in .0001pt .05in;text-align:justify;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">Please
  include in the cover letter accompanying the Note a reference to the
  Purchaser&#146;s account number (United of Omaha Life Insurance Company: Account
  Number:&nbsp; G09588</font></p>
  <p style="margin:0in 0in .0001pt .05in;text-align:justify;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  <p style="margin:0in 0in .0001pt .05in;text-align:justify;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">(b)
  &nbsp;Send copy by nationwide overnight
  delivery service to:</font></p>
  <p style="margin:0in 0in .0001pt .05in;text-align:justify;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  <p style="margin:0in 0in .0001pt .05in;text-align:justify;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">Prudential
  Capital Group</font></p>
  <p style="margin:0in 0in .0001pt .05in;text-align:justify;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">Gateway
  Center 4</font></p>
  <p style="margin:0in 0in .0001pt .05in;text-align:justify;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">100
  Mulberry, 7th Floor</font></p>
  <p style="margin:0in 0in .0001pt .05in;text-align:justify;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">Newark,
  NJ 07102</font></p>
  <p style="margin:0in 0in .0001pt .05in;text-align:justify;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  <p style="margin:0in 0in .0001pt .05in;text-align:justify;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">Attention:&nbsp; Trade Management, Manager</font></p>
  <p style="margin:0in 0in .0001pt .05in;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">Telephone:&nbsp; (973) 367-3141</font></p>
  <p style="margin:0in 0in .0001pt .05in;"><font size="1" face="Times New Roman" style="font-size:5.0pt;layout-grid-mode:both;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="40%" valign="top" style="border-bottom:double windowtext 2.25pt;border-left:double windowtext 1.5pt;border-right:solid windowtext 1.0pt;border-top:none;padding:0in 0in 0in 0in;width:40.2%;">
  <p style="margin:0in 0in .0001pt .05in;"><font size="1" face="Times New Roman" style="font-size:5.0pt;">&nbsp;</font></p>
  <p style="margin:0in 0in .0001pt .05in;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">Tax Identification Number</font></p>
  <p style="margin:0in 0in .0001pt .05in;"><font size="1" face="Times New Roman" style="font-size:5.0pt;">&nbsp;</font></p>
  </td>
  <td width="59%" valign="top" style="border-bottom:double windowtext 2.25pt;border-left:none;border-right:double windowtext 1.5pt;border-top:none;padding:0in 0in 0in 0in;width:59.8%;">
  <p style="margin:0in 0in .0001pt .05in;"><font size="1" face="Times New Roman" style="font-size:5.0pt;">&nbsp;</font></p>
  <p style="margin:0in 0in .0001pt .05in;"><font size="1" face="Times New Roman" style="font-size:9.0pt;">47-0322111</font></p>
  <p style="margin:0in 0in .0001pt .05in;"><font size="1" face="Times New Roman" style="font-size:5.0pt;">&nbsp;</font></p>
  </td>
 </tr>
</table>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">Schedule A-2<a name="PB_2_113242_1861"></a></font></p>

<div style="margin:0in 0in .0001pt;"><hr size="3" width="100%" noshade color="#010101" align="left"></div>

</div>
<!-- SEQ.=1,FOLIO='Schedule A-2',FILE='C:\JMS\sjayara\10-12718-1\task4204252\12718-1-ki-13.htm',USER='105898',CD='Jul 28 19:09 2010' -->



<br clear="all" style="page-break-before:always;">
<div>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><b><font size="3" face="Times New Roman" style="font-size:12.0pt;font-weight:bold;">SCHEDULE
B</font></b></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">&nbsp;</font></b></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><b><font size="3" face="Times New Roman" style="font-size:12.0pt;font-weight:bold;">DEFINED
TERMS</font></b></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">&nbsp;</font></b></p>

<p style="margin:0in 0in .0001pt;text-align:justify;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">As
used herein, the following terms have the respective meanings set forth below
or set forth in the Section hereof following such term:</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:34.2pt;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">&#147;<b>Acceptance</b>&#148;
is defined in Section 2B(5).</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:34.2pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:34.2pt;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">&#147;<b>Acceptance Day</b>&#148;
is defined in Section 2B(5).</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:34.2pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:34.2pt;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">&#147;<b>Acceptance Window</b>&#148;
is defined in Section 2B(5).</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:34.2pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:34.2pt;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">&#147;<b>Accepted Note</b>&#148;
is defined in Section 2B(5).</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:34.2pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:37.05pt;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">&#147;<b>Acquired Business</b>&#148;
means the entity, Property or assets acquired by the Company or a Subsidiary in
an Acquisition, after the date hereof.</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:37.05pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:37.05pt;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">&#147;<b>Acquisition</b>&#148;
means any transaction or series of related transactions for the purpose of or
resulting, directly or indirectly, in (a) the acquisition of all or
substantially all of the assets of a Person, or of any business or division of
a Person, (b) the acquisition of in excess of 50% of the capital stock,
partnership interests, membership interests or equity of any Person (other than
a Person that is a Subsidiary), or otherwise causing any Person to become a
Subsidiary, or (c) a merger or consolidation or any other combination with
another Person (other than a Person that is a Subsidiary) <u>provided</u> that
the Company or the Subsidiary is the surviving entity.</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:37.05pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:34.2pt;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">&#147;<b>Additional Guarantor</b>&#148;
is defined in Section 20.8.</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:34.2pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:34.2pt;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">&#147;<b>Affiliate</b>&#148;
means any Person directly or indirectly controlling or controlled by, or under
direct or indirect common control with, another Person.&#160; A Person shall be deemed to control another
Person for the purposes of this definition if such Person possesses, directly
or indirectly, the power to direct, or cause the direction of, the management
and policies of the other Person, whether through the ownership of voting
securities, common directors, trustees or officers, by contract or otherwise; <u>provided</u>
that, in any event for purposes of this definition, any Person that owns,
directly or indirectly, 20% or more of the securities having the ordinary
voting power for the election of directors or other governing body of a
corporation or 20% or more of the partnership or other ownership interest of
any other Person (other than as a limited partner of such other Person) will be
deemed to control such corporation or other Person.</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:34.2pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:34.2pt;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">&#147;<b>Aggregate TMVUA Real
Property NOI</b>&#148; means the aggregate amount of TMVUA Real Property NOI
for all TMVUA Real Properties.</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:34.2pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:34.2pt;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">&#147;<b>Agreement</b>&#148;
means this Note Purchase and Private Shelf Agreement, dated as of July 14,
2010, between the Company and the other Credit Parties, on the one hand and
PIM, the Series A Purchasers, and each Prudential Affiliate that hereafter may
become bound by certain provisions hereof, on the other hand, as it may from
time to time be amended, supplemented or otherwise modified.</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">Schedule B-1<a name="PB_1_120548_4129"></a></font></p>

<div style="margin:0in 0in .0001pt;"><hr size="3" width="100%" noshade color="#010101" align="left"></div>

</div>
<!-- SEQ.=1,FOLIO='Schedule B-1',FILE='C:\JMS\sjayara\10-12718-1\task4204252\12718-1-ki-15.htm',USER='105898',CD='Jul 28 19:09 2010' -->


<br clear="all" style="page-break-before:always;">


<div>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:34.2pt;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">&#147;<b>ALFs</b>&#148; means
assisted living facilities.</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:34.2pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:34.2pt;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">&#147;<b>Anti-Terrorism
Order</b>&#148; means Executive Order No. 13,224 of September 24, 2001,
Blocking Property and Prohibiting Transactions with Persons Who Commit,
Threaten to Commit or Support Terrorism, 66 U.S. Fed. Reg. 49, 079 (2001), as
amended.</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:34.2pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:34.2pt;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">&#147;<b>Assets Under Development</b>&#148;
means any real property under construction.</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:34.2pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:34.2pt;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">&#147;<b>Authorized Officer</b>&#148;
means (i) in the case of the Company, its President, Chief Financial Officer,
Controller, Treasurer and any Vice President thereof designated as an
&#147;Authorized Officer&#148; of the Company in the Information Schedule or designated
as an &#147;Authorized Officer&#148; of the Company for purposes of this Agreement in an
Officer&#146;s Certificate executed by the Company&#146;s President, Chief Financial
Officer or Treasurer, and (ii) in the case of PIM, any officer of PIM
designated as its &#147;Authorized Officer&#148; in the Information Schedule or any
officer of PIM designated as its &#147;Authorized Officer&#148; for the purpose of this
Agreement in a certificate executed by one of its Authorized Officers.&#160; Any action taken under this Agreement on
behalf of the Company by any individual who on or after the date of this
Agreement shall have been an Authorized Officer of the Company and whom PIM in
good faith believes to be an Authorized Officer of the Company at the time of
such action shall be binding on the Company even though such individual shall
have ceased to be an Authorized Officer of the Company, and any action taken
under this Agreement on behalf of PIM by any individual who on or after the
date of this Agreement shall have been an Authorized Officer of PIM, and who the
Company in good faith believes to be an Authorized Officer of PIM at the time
of such action shall be binding on PIM even though such individual shall have
ceased to be an Authorized Officer of PIM.</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:34.2pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:34.2pt;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">&#147;<b>Available Facility Amount</b>&#148;
is defined in Section 2B(1).</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:34.2pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:34.2pt;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">&#147;<b>Beneficiaries</b>&#148;
is defined in Section 20.</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:34.2pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:34.2pt;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">&#147;<b>Borrowing Base</b>&#148;
means, at any date of its determination, an amount equal to 50% of the
Borrowing Base Value on such date <u>minus</u> the outstanding principal amount
of all Unsecured Debt of the Company on such date that is pari passu in rank to
the indebtedness under the Credit Agreement other than the Obligations (as
defined in the Credit Agreement on the date hereof).</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:34.2pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:34.2pt;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">&#147;<b>Borrowing Base Certificate</b>&#148;
means the certificate in the form of <u>Exhibit E</u> hereto, or in such other
form acceptable to the Required Holders, to be delivered pursuant to Sections
4A(4) and 7.1(c) hereof.</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:34.2pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:34.2pt;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">&#147;<b>Borrowing Base
Determination Date</b>&#148; means each date on which the Borrowing Base is
certified to each holder of Notes which is an Institutional Investor, as
follows:</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:34.2pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:34.2pt;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">(a) Quarterly -- on the 50th day following the end of
each Fiscal Quarter (except for the fourth Fiscal Quarter, in which event it
shall be on the 60th day following the end of such quarter); and</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:34.2pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:34.2pt;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">(b) Property Adjustments -- upon each addition or
deletion of an Eligible Property pursuant to Section 9.10.</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">Schedule B-2<a name="PB_2_120548_7128"></a></font></p>

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</div>
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<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:34.2pt;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">&#147;<b>Borrowing Base
Requirements</b>&#148; means collectively that (a) no more than 10% of the
Borrowing Base Value may be comprised of Eligible Properties which are leased
by the Company pursuant to a Qualified Ground Lease; (b) no more than 20% of
the Borrowing Base Value may be comprised of Eligible Properties which are
neither SNFs or ALFs; (c) no more than 15% of the Borrowing Base Value may be
comprised of Eligible Properties which are not 100% owned by the Company and/or
any Guarantor (exclusive of Eligible Properties attributable to (a) above); and
(d) no more than 10% of the Borrowing Base Value may be comprised of any one
Eligible Property.</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:34.2pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:34.2pt;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">&#147;<b>Borrowing Base Value</b>&#148;
means, at any time of determination, an amount equal to the sum of the
following at such time (a) Eligible Properties owned for four consecutive
quarters or more at such time valued at the Calculated Value, and (b) Eligible
Properties owned for less than four consecutive quarters at such time valued at
the Investment Amount.</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:34.2pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:34.2pt;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">&#147;<b>Business Day</b>&#148;
means:&#160; (a) for the purposes of Section
2B(3) only, any day which is both a New York Business Day and a day on which
PIM is open for business; and (b) for the purposes of any other provision of
this Agreement, a New York Business Day.</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:34.2pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:37.05pt;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">&#147;<b>Calculated Value</b>&#148;
means the quotient of the Eligible Property NOI for each applicable Eligible
Property divided by its applicable Capitalization Rate with the resulting
quotient multiplied by the owner&#146;s percentage ownership of such Eligible
Property.</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:37.05pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:34.2pt;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">&#147;<b>Cancellation Date</b>&#148;
is defined in Section 2B(8)(iv).</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:34.2pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:34.2pt;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">&#147;<b>Cancellation Fee</b>&#148;
is defined in Section 2B(8)(iv).</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:34.2pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:34.2pt;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">&#147;<b>Capital Lease</b>&#148;
means any lease of Property which in accordance with GAAP is required to be
capitalized on the balance sheet of the lessee.</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:34.2pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:34.2pt;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">&#147;<b>Capitalization Rate</b>&#148;
means 8.5% for ALFs and 12% for SNFs.</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:34.2pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:34.2pt;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">&#147;<b>Capitalized Lease
Obligation</b>&#148; means, for any Person, the amount of the liability shown
on the balance sheet of such Person in respect of a Capital Lease determined in
accordance with GAAP.</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:34.2pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:34.2pt;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">&#147;<b>Change of Control</b>&#148;
means any of (a) the acquisition by any &#147;person&#148; or &#147;group&#148; (as such terms are
used in sections 13(d) and 14(d) of the Securities Exchange Act of 1934, as
amended) at any time of beneficial ownership of 50% or more of the outstanding
capital stock or other equity interests of the Company on a fully-diluted
basis, (b) any &#147;Change of Control&#148; (or words of like import), as defined in any
agreement or indenture relating to any issue of Indebtedness for Borrowed Money
in excess of $10,000,000 shall occur, or (c) during any twelve (12) month
period on or after the date hereof, individuals who at the beginning of such
period constituted the Board of Directors of the Company (together with any new
directors whose election by the Board of Directors or whose nomination for
election by the shareholders of the Company was approved by a vote of at least
a majority of the members of the Board of Directors then in office who either
were members of the Board of Directors at the beginning of such period or whose
election or nomination for election was previously so approved) cease for any
reason to constitute a majority of the members of the Board of Directors then in
office.</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">Schedule B-3<a name="PB_3_120548_3263"></a></font></p>

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</div>
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<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:34.2pt;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">&#147;<b>Closing Day</b>&#148;
means, with respect to the Series A Notes, the Series A Closing Day and, with
respect to any Accepted Note, the Business Day specified for the closing of the
purchase and sale of such Accepted Note in the Confirmation of Acceptance with
respect to such Accepted Note; <u>provided</u>
that (i) if the Company and the Purchaser which is obligated to purchase such
Accepted Note agree on an earlier Business Day for such closing, the &#147;Closing
Day&#148; for such Accepted Note shall be such earlier Business Day, and (ii) if the
closing of the purchase and sale of such Accepted Note is rescheduled pursuant
to Section 2B(7), the &#147;Closing Day&#148; for such Accepted Note, for all purposes of
this Agreement except references to &#147;original Closing Day&#148; in Section
2B(8)(iii), shall mean the Rescheduled Closing Day with respect to such
Accepted Note.</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:34.2pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;page-break-after:avoid;text-align:justify;text-indent:34.2pt;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">&#147;<b>Code</b>&#148;
means the Internal Revenue Code of 1986, as amended from time to time, and the
rules and regulations promulgated thereunder from time to time.</font></p>

<p style="margin:0in 0in .0001pt;page-break-after:avoid;text-align:justify;text-indent:34.2pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:34.2pt;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">&#147;<b>Company</b>&#148;
is defined in the introductory paragraph of this Agreement.</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:34.2pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:34.2pt;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">&#147;<b>Confirmation of
Acceptance</b>&#148; is defined in Section 2B(5).</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:34.2pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:34.2pt;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">&#147;<b>Credit Agreement</b>&#148;
means that certain Second Amended and Restated Credit Agreement, dated as of
July 17, 2008, by and among the Company, the Guarantors, the Lenders named
therein and from time to time party thereto and the other parties from time to
time party thereto, as amended, restated, supplemented, replaced or otherwise
modified from time to time.</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:34.2pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:34.2pt;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">&#147;<b>Credit Facility Debt
Service</b>&#148; means, for any Fiscal Quarter, all interest and letter of
credit fees payable on the Loans or Letters of Credit or as part of the
Obligations (as such terms are defined as of the date hereof in the Credit Agreement).</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:34.2pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:34.2pt;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">&#147;<b>Credit Parties</b>&#148;
means the Company and the Guarantors.</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:34.2pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:34.2pt;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">&#147;<b>Debt Service</b>&#148;
means, for any Fiscal Quarter, the sum of (a) Interest Expense and (b) the
greater of (i) zero or (ii) scheduled principal amortization paid on Total
Indebtedness (exclusive of any balloon payments or voluntary prepayments of
principal paid on such Total Indebtedness) <u>less</u> scheduled principal
amortization payments received on mortgage loans receivable or its REMIC
Certificate investments (exclusive of any balloon payments or voluntary
prepayments of principal received on mortgage loans receivable or on the
underlying mortgage loans of investments in REMIC Certificates).</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:34.2pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:34.2pt;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">&#147;<b>Default</b>&#148;
means an event or condition the occurrence or existence of which would, with
the lapse of time or the giving of notice or both, become an Event of Default.</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:34.2pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:34.2pt;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">&#147;<b>Default Rate</b>&#148;
means (i) as to any Series A-1 Note, that rate of interest that is the greater
of (a) 7.26% per annum, and (b) 2% over the rate of interest publicly announced
by JPMorgan Chase Bank as its &#147;base&#148; or &#147;prime&#148; rate, (ii) as to any Series A-2
Note, that rate of interest that is the greater of (a) 7.74% per annum, and (b)
2% over the rate of interest publicly announced by JPMorgan Chase Bank as its
&#147;base&#148; or &#147;prime&#148; rate, and (iii) as to any Shelf Note, that rate of interest
that is the greater of (1) 2% over the Interest Rate specified in the caption
at set forth at the top of such Shelf Note, and (2) 2% over the rate of
interest publicly announced by JPMorgan Chase Bank from time to time in New
York City as its &#147;base&#148; or &#147;prime&#148; rate.</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">Schedule B-4<a name="PB_4_120548_6333"></a></font></p>

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</div>
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<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:34.2pt;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">&#147;<b>Delayed Delivery Fee</b>&#148;
is defined in Section 2B(8)(iii).</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:34.2pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:34.2pt;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">&#147;<b>Dollars</b>&#148;
and &#147;<b>$</b>&#148; means lawful currency of
the United States of America.</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:34.2pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:34.2pt;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">&#147;<b>EBITDA</b>&#148; means,
for any period, determined on a consolidated basis for the Company and its
Subsidiaries in accordance with GAAP, the sum of net income (or loss) plus, to
the extent deducted in the calculation thereof:&#160;
(i) depreciation and amortization expense; (ii) interest expense; (iii)
income tax expense; (iv) extraordinary, unrealized or nonrecurring losses,
including impairment charges and reserves, minus, to the extent included in the
calculation thereof:&#160; (v) funds received
by the Company or a Subsidiary as rent but which are reserved for capital
expenses; (vi) unrealized gains on the sale of assets; and, (vii) income tax
benefits.</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:34.2pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:34.2pt;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">&#147;<b>Eligible Line of Business</b>&#148;
means any business engaged in as of the date of this Agreement by the Company
or any of its Subsidiaries.</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:34.2pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:34.2pt;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">&#147;<b>Eligible Property</b>&#148;
means, as of any Borrowing Base Determination Date, any Property owned by the
Company or a Material Subsidiary which satisfies the following conditions which
would permit such Property to be included in the Borrowing Base:</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:34.2pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:34.2pt;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">(a) such Property is real property which is at least
majority owned in fee simple, or 100% leased by the Company or a Material
Subsidiary pursuant to a Qualified Ground Lease; <u>provided</u> that for any
Property owned less than 100%, the Company or such Material Subsidiary shall
have the unilateral right (i) to sell, transfer or otherwise dispose of such
Property, and (ii) to create a Lien on such Property as security for
Indebtedness for Borrowed Money;</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:34.2pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:34.2pt;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">(b) such Property is currently in service (not under
development or non-stabilized);</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:34.2pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:34.2pt;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">(c) such Property constitutes a Senior Housing Asset
located in the United States of America;</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:34.2pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:34.2pt;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">(d) neither such Property nor the ownership interest
therein is subject to any Lien (other than Permitted Liens) or to any negative
pledge;</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:34.2pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:34.2pt;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">(e) if such Property is owned by a Material
Subsidiary, (i) none of the Company&#146;s beneficial ownership interest in such
Material Subsidiary is subject to any Lien (other than certain Permitted Liens)
or to any negative pledge, (ii) such Material Subsidiary has the unilateral
right to sell, transfer or otherwise dispose of such Property and to create a
Lien on such Property as security for Indebtedness for Borrowed Money, and
(iii) such Material Subsidiary has become a Guarantor pursuant to Section 9.9
hereof;</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:34.2pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:34.2pt;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">(f) such Property, based on the Company&#146;s or such
Material Subsidiary&#146;s knowledge, is free of all material structural defects or
major architectural deficiencies, material title defects, material
environmental conditions or other adverse matters which, individually or
collectively, materially impair the value of such Property; and</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:34.2pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:34.2pt;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">(g) the lessee of such Property under such lease is
not more than 60 days past due with respect to any monthly rent payment
obligations under such lease.</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">Schedule B-5<a name="PB_5_120548_2077"></a></font></p>

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</div>
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<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:34.2pt;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">&#147;<b>Eligible Property NOI</b>&#148;
means, for any given period, the aggregate Property NOI attributable to the
Eligible Properties owned by the Company or a Material Subsidiary for a period
in excess of four Fiscal Quarters and defined for each such Eligible Property
or pool of such Eligible Properties under a master Lease as the lesser of (i)
Property NOI divided by 1.15, or (ii) the related Lease payment on such
Eligible Property or pool of Eligible Properties due to the Company or a
Material Subsidiary for such period.</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:34.2pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:34.2pt;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">&#147;<b>Environmental Law</b>&#148;
means any current or future Legal Requirement pertaining to (a) the protection
of health, safety and the indoor or outdoor environment, (b) the conservation,
management or use of natural resources and wildlife, (c) the protection or use
of surface water or groundwater, (d) the management, manufacture, possession,
presence, use, generation, transportation, treatment, storage, disposal,
Release, threatened Release, abatement, removal, remediation or handling of, or
exposure to, any Hazardous Material or (e) pollution (including any Release to
air, land, surface water or groundwater), and any amendment, rule, regulation,
order or directive issued thereunder.</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:34.2pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:34.2pt;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">&#147;<b>ERISA</b>&#148;
means the Employee Retirement Income Security Act of 1974, as amended from time
to time, and the rules and regulations promulgated thereunder from time to time
in effect.</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:34.2pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:34.2pt;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">&#147;<b>ERISA Affiliate</b>&#148;
means any trade or business (whether or not incorporated) that is treated as a
single employer together with the Company or a Subsidiary under section 414 of
the Code.</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:34.2pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:34.2pt;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">&#147;<b>Event of Default</b>&#148;
is defined in Section 11.</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:34.2pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:34.2pt;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">&#147;<b>Exchange Act</b>&#148;
means the Securities Exchange Act of 1934, as amended from time to time, and
the rules and regulations promulgated thereunder from time to time in effect.</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:34.2pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:34.2pt;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">&#147;<b>Facility</b>&#148;
is defined in Section 2B(l).</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:34.2pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:34.2pt;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">&#147;<b>Fiscal Quarter</b>&#148;
means each of the three-month periods ending on March 31, June 30, September 30
and December 31.</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:34.2pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:34.2pt;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">&#147;<b>Fiscal Year</b>&#148;
means the twelve-month period ending on December 31.</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:34.2pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:34.2pt;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">&#147;<b>Fixed Charges</b>&#148;
means, for any Fiscal Quarter, Debt Service for such quarter, plus Preferred
Dividends for such quarter, plus $400 per bed for any Property on which the
Lease of such Property does not require the tenant to pay for all capital
expenditures.</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:34.2pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:34.2pt;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">&#147;<b>Future Property</b>&#148;
means any Property which the Company or any Subsidiary of the Company acquires
after the date hereof.</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:34.2pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:34.2pt;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">&#147;<b>GAAP</b>&#148; means
generally accepted accounting principles set forth from time to time in the
opinions and pronouncements of the Accounting Principles Board and the American
Institute of Certified Public Accountants and statements and pronouncements of
the Financial Accounting Standards Board (or agencies with similar functions of
comparable stature and authority within the U.S. accounting profession), which
are applicable to the circumstances as of the date of determination; <u>provided</u>,
that (except with respect to SEC filings referenced in Section 7.1(a) and (b))
&#147;GAAP&#148; shall exclude the effects of Accounting Standards Codification 825-10-25
(previously referred to as SFAS 159) or any successor or similar provision to
the extent it relates to &#147;fair value&#148; accounting for liabilities.</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">Schedule B-6<a name="PB_6_120548_1861"></a></font></p>

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</div>
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<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:34.2pt;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">&#147;<b>Governmental
Authority</b>&#148; means the government of</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:34.2pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt 37.05pt;text-align:justify;text-indent:34.2pt;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">(a)&#160;&#160;&#160;&#160;&#160;&#160;&#160; the United States of America or any
state or other political subdivision thereof, or</font></p>

<p style="margin:0in 0in .0001pt 37.05pt;text-align:justify;text-indent:34.2pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt 37.05pt;text-align:justify;text-indent:34.2pt;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">(b)&#160;&#160;&#160;&#160;&#160;&#160;&#160; any other jurisdiction in which any of
the Company or any Subsidiary conducts all or any part of its business, or
which asserts jurisdiction over any properties of such Person, or</font></p>

<p style="margin:0in 0in .0001pt 37.05pt;text-align:justify;text-indent:34.2pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt 37.05pt;text-align:justify;text-indent:34.2pt;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">(c)&#160;&#160;&#160;&#160;&#160;&#160;&#160; any entity exercising executive,
legislative, judicial, regulatory or administrative functions of, or pertaining
to, any such government.</font></p>

<p style="margin:0in 0in .0001pt 37.05pt;text-align:justify;text-indent:34.2pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:34.2pt;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">&#147;<b>Guaranteed Obligations</b>&#148;
is defined in Section 20.1(a).</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:34.2pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:34.2pt;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">&#147;<b>Guarantors</b>&#148;
means the Persons from time to time party hereto and obligated under the
Multiparty Guaranty, including (i) the Persons signatory hereto and identified
on the signature pages hereto as &#147;Guarantors&#148;, and (ii) each other Person which
from time to time hereafter executes and delivers a Joinder to Multiparty
Guaranty pursuant to the requirements of Section 9.9; as any of the foregoing
Persons in clauses (i) and (ii) from time to time may be released and
discharged from its obligations under the Multiparty Guaranty pursuant to the
provisions of Section 20.4.</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:34.2pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:.5in;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">&#147;<b>Guaranty</b>&#148; shall
mean, with respect to any Person, any direct or indirect obligation or
liability, contingent or otherwise, of such Person guaranteeing or having the
economic effect of guaranteeing any Indebtedness for Borrowed Money, lease,
dividend or other obligation payable or performable by another Person in any
manner, including, without limitation, any obligation directly or indirectly
guaranteed, endorsed (otherwise than for collection or deposit in the ordinary
course of business) or discounted or sold with recourse by such Person, or in
respect of which such Person is otherwise directly or indirectly liable or
obligated, and including, without limitation, any obligation of such Person
(contingent or otherwise, direct or indirect) to:&#160; (i) maintain working capital, equity capital,
the solvency or any balance sheet condition or other financial condition or
liquidity or level of income or cash flow of another Person in any manner; (ii)
to purchase the obligations of or equity interests in another Person from the
holders of such obligations or interests; (iii) to purchase or lease property,
securities or services or supply or advance any funds, goods or services to or
on behalf of another Person in any manner; (iv) to guarantee (a) the completion
of any work or any other schedule or deliverable obligations or requirements of
another Person in any manner, (b) the quality of any construction work, means
or methods of another Person in any manner, (c) any warranty or indemnity obligations
of another Person in any manner, or (d) any other payment, performance or
contractual obligations of another Person in any manner; or (v) purchase or
otherwise pay (or advance or supply funds for the </font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">Schedule B-7<a name="PB_7_120548_5835"></a></font></p>

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</div>
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<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:0in;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">purchase or payment of) any Indebtedness for Borrowed Money or other
obligation of another Person or to purchase or otherwise make payment for (or
advance or supply funds for the purchase or payment for) any products,
materials, supplies or other property, or for any transportation or services,
regardless of the non-delivery or non-furnishing thereof, in any such case if
the purpose or effect of such agreement is to provide assurance that such
obligation will be paid or discharged, or that any agreements relating thereto
will be complied with, or that the holders of such obligation will be protected
against loss in respect thereof.&#160;
Guaranties shall include obligations of partnerships and joint ventures
of which such Person is a general partner or co-venturer that are not expressly
non-recourse to such Person.&#160; In any
computation of the indebtedness or other liabilities of the obligor under any
Guaranty, the indebtedness or other obligations that are the subject of such
Guaranty shall be assumed to be direct obligations of such obligor.</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:34.2pt;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">&#147;<b>Hazardous Material</b>&#148;
means any substance, chemical, compound, product, solid, gas, liquid, waste,
byproduct, pollutant, contaminant or material which is hazardous or toxic, and
includes, without limitation, (a) asbestos, polychlorinated biphenyls and
petroleum (including crude oil or any fraction thereof), and (b) any material
classified or regulated as &#147;hazardous&#148; or &#147;toxic&#148; or words of like import
pursuant to an Environmental Law.</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:34.2pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:34.2pt;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">&#147;<b>Hedge Treasury
Note(s)</b>&#148; means, with respect to any Accepted Note, the United States
Treasury Note or Notes whose average life (as determined by PIM) most closely
matches the average life of such Accepted Note.</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:34.2pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:34.2pt;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">&#147;<b>holder</b>&#148;
means, with respect to any Note, the Person in whose name such Note is
registered in the register maintained by the Company pursuant to Section 13.1.</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:34.2pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:34.2pt;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">&#147;<b>Hostile Acquisition</b>&#148;
means the acquisition of the capital stock or other equity interests of a
Person through a tender offer or similar solicitation of the owners of such
capital stock or other equity interests which has not been approved (prior to
such acquisition) by resolutions of the Board of Directors of such Person or by
similar action if such Person is not a corporation, and as to which such
approval has not been withdrawn.</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:34.2pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:34.2pt;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">&#147;<b>Improvements</b>&#148;
for any Property means all buildings, structures, fixtures, tenant improvements
and other improvements of every kind and description now or hereafter located
in or on or attached to the Land for such Property; and all additions and
betterments thereto and all renewals, substitutions and replacements thereof.</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:34.2pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:34.2pt;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">&#147;<b>include</b>&#148;
or &#147;<b>including</b>&#148; means, unless the
context clearly requires otherwise, &#147;including without limitation.&#148;</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:34.2pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:34.2pt;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">&#147;<b>Indebtedness for Borrowed
Money</b>&#148; means for any Person (without duplication) (a) all
indebtedness created, assumed or incurred in any manner by such Person
representing money borrowed (including by the issuance of debt securities), (b)
all indebtedness for the deferred purchase price of property or services (other
than trade accounts payable arising in the ordinary course of business), (c)
all indebtedness secured by any Lien upon Property of such Person, whether or
not such Person has assumed or become liable for the payment of such
indebtedness, (d) all Capitalized Lease Obligations of such Person, (e) all
obligations of such Person on or with respect to letters of credit, bankers&#146;
acceptances and other extensions of credit whether or not representing
obligations for borrowed money, and (f) all obligations of the sort described
in the foregoing clauses with respect to which such Person has become liable by
way of a Guaranty.</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">Schedule B-8<a name="PB_8_120548_808"></a></font></p>

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</div>
<!-- SEQ.=1,FOLIO='Schedule B-8',FILE='C:\JMS\sjayara\10-12718-1\task4204252\12718-1-ki-15.htm',USER='105898',CD='Jul 28 19:09 2010' -->


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<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:34.2pt;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">&#147;<b>Institutional
Investor</b>&#148; means (a) any Purchaser of a Note, (b) any holder of a
Note holding (together with one or more of its affiliates) more than 5% of the
aggregate principal amount of the Notes then outstanding, (c) any bank, trust
company, savings and loan association or other financial institution, any
pension plan, any investment company, any insurance company, any broker or
dealer, or any other similar financial institution or entity, regardless of
legal form, and (d) any Related Fund of any holder of any Note.</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:34.2pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:34.2pt;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">&#147;<b>Interest Expense</b>&#148;
means, for any period of determination, the interest expense, whether paid,
accrued or capitalized (without deduction of consolidated interest income) of
the Company and its Subsidiaries on a consolidated basis for such period.&#160; Interest Expense shall exclude any
amortization of (i) deferred financing fees, including the write-off such fees
relating to the early retirement of such related Indebtedness for Borrowed
Money, and (ii) debt discounts (but only to the extent such discounts do not
exceed 3.0% of the initial face principal amount of such debt).</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:34.2pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:34.2pt;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">&#147;<b>Issuance Period</b>&#148;
is defined in Section 2B(8)(ii).</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:34.2pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:34.2pt;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">&#147;<b>Investment Amount</b>&#148;
means for any Property which, at the time of determination, has been owned for
less than four consecutive quarters at such time, the product of (i) the
percentage interest of such Property owned by the Company or Guarantor, and
(ii) the aggregate purchase price paid for such Property (giving effect to any
securities used to purchase a Property at the fair market value of the
securities at the time of purchase based upon the price at which such
securities could be exchanged into the Company&#146;s common stock assuming such
exchange occurred on the date of acquiring the Property).</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:34.2pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:34.2pt;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">&#147;<b>Joinder to Multiparty
Guaranty</b>&#148; means a joinder agreement entered into by an Additional
Guarantor in substantially the form of <u>Exhibit F</u>.</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:34.2pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:34.2pt;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">&#147;<b>Land</b>&#148; for any
Property means the real property upon which the Improvements are located,
together with all rights, title and interests appurtenant to such real
property, including without limitation all rights, title and interests to (a)
all strips and gores within or adjoining such property, (b) the streets, roads,
sidewalks, alleys, and ways adjacent thereto, (c) all of the tenements,
hereditaments, easements, reciprocal easement agreements, rights-of-way and
other rights, privileges and appurtenances thereunto belonging or in any way
pertaining thereto, (d) all reversions and remainders, (e) all air space
rights, and all water, sewer and wastewater rights, (e) all mineral, oil, gas,
hydrocarbon substances and other rights to produce or share in the production
of anything related to such property, and (f) all other appurtenances
appurtenant to such property, including without limitation, any now or
hereafter belonging or in anywise appertaining thereto.</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:34.2pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:34.2pt;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">&#147;<b>Lease</b>&#148; means
any lease, tenancy agreement, contract or other agreement for the use or
occupancy of a Property or any portion thereof.</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:34.2pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:34.2pt;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">&#147;<b>Legal Requirement</b>&#148;
means any treaty, convention, statute, law, regulation, ordinance, license,
permit, governmental approval, injunction, judgment, order, consent decree or
other requirement of any governmental authority, whether federal, state, or
local.</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">Schedule B-9<a name="PB_9_120548_4581"></a></font></p>

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</div>
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<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:34.2pt;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">&#147;<b>Lien</b>&#148; means any
mortgage, lien, security interest, pledge, charge or encumbrance of any kind in
respect of any Property, including the interests of a vendor or lessor under
any conditional sale, Capital Lease or other title retention arrangement.</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:34.2pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:34.2pt;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">&#147;<b>Make-Whole Amount</b>&#148;
is defined in Section 8.6.</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:34.2pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:34.2pt;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">&#147;<b>Material</b>&#148;
means material in relation to the business, operations, affairs, financial
condition, assets, properties, or prospects of the Credit Parties taken as a
whole.</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:34.2pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:34.2pt;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">&#147;<b>Material Adverse Effect</b>&#148;
means a material and adverse effect on (a) the business, condition (financial
or otherwise), operations, performance or properties of the Company and its
Subsidiaries taken as a whole, (b) the ability of the Company or any Guarantor
to perform its obligations under the Transaction Documents to which it is a
party, or (c) the validity or enforceability of any of the Transaction
Documents or the rights or remedies of PIM or the holders of Notes thereunder; <u>provided</u>,
<u>however</u>, that the sale of assets of one or more Guarantors in accordance
with the terms of this Agreement shall not be deemed in and of itself to cause
a Material Adverse Effect absent the presence of the factors set forth above.</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:34.2pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:34.2pt;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">&#147;<b>Material Subsidiary</b>&#148;
means each Subsidiary that owns a Property included in the Borrowing Base
Value, and Education Property Investors, Inc.</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:34.2pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:34.2pt;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">&#147;<b>Medical Office Buildings</b>&#148;
means a medical office buildings that contain one or more physicians&#146; offices
and examination rooms, and may also include pharmacies, hospital ancillary
service space and day-surgery operating rooms.</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:34.2pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:34.2pt;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">&#147;<b>Moody&#146;s</b>&#148; means
Moody&#146;s Investors Service, Inc. and any successor thereto.</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:34.2pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:34.2pt;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">&#147;<b>Multiemployer Plan</b>&#148;
means any Plan that is a &#147;multiemployer plan&#148; (as such term is defined in
section 4001(a)(3) of ERISA).</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:34.2pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:34.2pt;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">&#147;<b>Multiparty Guaranty</b>&#148;
is defined in Section 20.</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:34.2pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="line-height:normal;margin:0in 0in .0001pt;text-align:justify;text-indent:.5in;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">&#147;<b>NAIC</b>&#148; means the National Association of Insurance Commissioners
or any successor thereto.</font></p>

<p style="line-height:normal;margin:0in 0in .0001pt;text-align:justify;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:34.2pt;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">&#147;<b>New York Business
Day</b>&#148; means any day other than a Saturday, a Sunday or a day on which
commercial banks in New York City are required or authorized to be closed.</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:34.2pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:34.2pt;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">&#147;<b>Notes</b>&#148;
is defined in Section 1C.</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:34.2pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:34.2pt;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">&#147;<b>Officer&#146;s Certificate</b>&#148;
means a certificate of a Senior Financial Officer or of any other officer of
the Company whose responsibilities extend to the subject matter of such
certificate.</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:34.2pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:34.2pt;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">&#147;<b>PBGC</b>&#148;
means the Pension Benefit Guaranty Corporation referred to and defined in ERISA
or any successor thereto.</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:34.2pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="font-size:12.0pt;margin:0in 0in .0001pt;text-align:justify;text-indent:34.2pt;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">&#147;<b>Pension Act</b>&#148;
means the Pension Protection Act of 2006, as amended from time to</font>
time, and the rules and regulations promulgated thereunder from time to time in
effect.</p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">Schedule B-10<a name="PB_10_120548_9058"></a></font></p>

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</div>
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<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:34.2pt;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">&#147;<b>Pension Funding Rules</b>&#148;
means the rules of the Code and ERISA regarding minimum required contributions
(including any installment payment thereof) to certain Plans and set forth in,
with respect to plan years ending prior to the effective date as to such Plan
of the Pension Act, Section 412 of the Code and Section 302 of ERISA, each as
in effect prior to the Pension Act and, thereafter, Sections 412 and 430 of the
Code and Sections 302 and 303 of ERISA.</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:34.2pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:34.2pt;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">&#147;<b>Permitted Acquisition</b>&#148;
means any Acquisition with respect to which all of the following conditions
shall have been satisfied:</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:34.2pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:37.05pt;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">(a) the Acquired Business is in an Eligible Line of
Business and has its primary operations within the United States of America;</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:37.05pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:37.05pt;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">(b) the Acquisition shall not be a Hostile Acquisition;</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:37.05pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:37.05pt;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">(c) the investment or acquisition is an asset
associated with an Eligible Line of Business which may include but is not
limited to sale/leaseback transactions, mortgage loans, lines of credit or
other financings, etc.;</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:37.05pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:37.05pt;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">(d) if a new Subsidiary is formed or acquired as a
result of or in connection with the Acquisition, the Company shall have
complied with the requirements of Section 9.9 hereof (to the extent applicable)
in connection therewith; and</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:37.05pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:37.05pt;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">(e) after giving effect to the Acquisition, no Default
or Event of Default shall exist, including with respect to the financial
covenants contained in Section 10.10 hereof, <u>provided</u>, <u>further</u>,
that if such Acquisition, together with any other Acquisitions made during the
then current Fiscal Quarter and the preceding three Fiscal Quarters of the
Company, have an aggregate cost exceeding $100,000,000, then for such
Acquisition and thereafter for any additional Acquisition in such then-current
Fiscal Quarter for an aggregate cost exceeding $20,000,000, the Company shall
provide to the holders of Notes which are Institutional Investors covenant
calculations for the covenants contained in Section 10.10, showing that the
projected effect of the Acquisition, in terms of additional asset value,
liabilities incurred if any, and additional revenues and expenses associated
therewith have been contemplated and have been projected into the expected
operating results and financial position of the Company for the Fiscal Quarter
in which the Acquisition occurs, and demonstrating that such Acquisition is not
reasonably expected to cause a violation of the Section 10.10 covenants for
such Fiscal Quarter.</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:37.05pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:34.2pt;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">&#147;<b>Permitted Lien</b>&#148;
means such of the following as to which no enforcement, collection, execution,
levy or foreclosure proceeding has been commenced:&#160; (a) Liens for taxes, assessments and
governmental charges or levies to the extent not required to be paid under
Section 9.4; (b) Liens imposed by law, such as materialmen&#146;s, mechanics&#146;,
carriers&#146;, workmen&#146;s and repairmen&#146;s Liens and other similar Liens arising in
the ordinary course of business securing obligations that are not overdue or
that are being contested in good faith and by proper proceedings and as to
which appropriate reserves are being maintained; (c) pledges or deposits to
secure obligations under workers&#146; compensation laws or similar legislation or
to secure public or statutory obligations; (d) easements, rights of way and
other encumbrances on title to real property that do not materially and
adversely affect the value of such property or the use of such property for its
present purposes; (e) deposits to secure the performance of bids, trade
contracts (other than for </font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">Schedule B-11</font><a name="PB_11_193719_7056"></a></p>

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</div>
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<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:0in;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">borrowed money), leases, statutory obligations, surety and appeal
bonds, performance bonds and other obligations of like nature incurred in the
ordinary course of business; (f) Liens in favor of the United States of America
for amounts paid to the Company or any Subsidiary as progress payments under
government contracts entered into by it; (g) attachment, judgment and other
similar Liens arising in connection with court, reference or arbitration
proceedings, <u>provided</u> that the same have been in existence less than 20
days, that the same have been discharged or that execution or enforcement
thereof has been stayed pending appeal; and (h) Liens on Properties not
included in the Borrowing Base Value and not included for purpose of the
calculation of TMVUA.</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:34.2pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:34.2pt;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">&#147;<b>Person</b>&#148;
means an individual, partnership, corporation (including a business trust),
limited liability company, joint stock company, trust, unincorporated
association, joint venture or other entity, or a Governmental Authority.</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:34.2pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:34.2pt;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">&#147;<b>PIM</b>&#148;
means Prudential Investment Management, Inc.</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:34.2pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:34.2pt;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">&#147;<b>Plan</b>&#148;
means an &#147;employee benefit plan&#148; (as defined in section 3(3) of ERISA) subject
to Title I of ERISA that is or, within the preceding five years, has been
established or maintained, or to which contributions are or, within the
preceding five years, have been made or required to be made, by the Company,
any Subsidiary or any ERISA Affiliate or with respect to which the Company, any
Subsidiary or any ERISA Affiliate may have any liability.</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:34.2pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:34.2pt;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">&#147;<b>Preferred Dividends</b>&#148;
means any dividend paid (or payable), as the case may be, in cash on any
preferred equity security issued by the Company.</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:34.2pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:34.2pt;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">&#147;<b>Principal Credit Facility</b>&#148;
means any loan agreement, credit agreement, note purchase agreement or similar
agreement under which credit facilities in the aggregate original principal or
commitment amount of at least $10,000,000 are provided for.</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:34.2pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:34.2pt;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">&#147;<b>Property</b>&#148; or &#147;<b>Properties</b>&#148; means, as to any Person, all types of real,
personal, tangible, intangible or mixed property owned by such Person whether
or not included in the most recent balance sheet of such Person and its
subsidiaries under GAAP, including any Eligible Property owned by the Company
or any of its Subsidiaries.</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:34.2pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:34.2pt;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">&#147;<b>Property Expenses</b>&#148;
means the costs (including, but not limited to, payroll, taxes, assessments,
insurance, utilities, landscaping and other similar charges) of operating and
maintaining any TMVUA Real Property which are the responsibility of the Company
or the applicable Guarantor that are not paid directly by the tenant, but
excluding depreciation, amortization, interest costs and maintenance capital
expenditures to the extent such TMVUA Real Property is under a triple-net
lease.</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:34.2pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:34.2pt;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">&#147;<b>Property Income</b>&#148;
means cash rents (excluding, as an abundance of caution,&#160; non-cash straight-line rent) and other cash
revenues received by the Company or a Guarantor in the ordinary course for any
TMVUA Real Property, but excluding security deposits and prepaid rent except to
the extent applied in satisfaction of tenants&#146; obligations for rent.</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">Schedule B-12<a name="PB_12_193834_2897"></a></font></p>

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</div>
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<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:34.2pt;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">&#147;<b>Property Net Operating
Income</b>&#148; or &#147;<b>Property NOI</b>&#148;
means, with respect to a Property and for the four most recently ended Fiscal
Quarters, the sum of the following (without duplication):&#160; (a) all revenues received in the ordinary
course of operating such Property (including proceeds of rent loss insurance
but excluding prepaid rents and revenues and security deposits except to the
extent applied in satisfaction of tenants&#146; obligations for rent) minus (b) all
expenses (whether paid or accrued) directly related to the operation or
maintenance of such Property, including but not limited to payroll expenses,
taxes, assessments and other similar charges, insurance, utilities,
maintenance, repair and landscaping expenses but not including any management fees
(in accordance with the computation of EBITDA plus rent and management
fees).&#160; All amounts due to the Company or
a Guarantor, whether as rent or mortgage payments for the property, will be
excluded from the calculation of (b) above.</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:34.2pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:34.2pt;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">&#147;<b>Prudential Affiliate</b>&#148;
means (i) any corporation or other entity controlling, controlled by, or under
common control with, PIM and (ii) any managed account or investment fund which
is managed by PIM or a Prudential Affiliate described in clause (i) of this
definition.&#160; For purposes of this
definition, the terms &#147;control,&#148; &#147;controlling&#148; and &#147;controlled&#148; shall mean the
ownership, directly or through subsidiaries, of a majority of a corporation&#146;s
or other Person&#146;s Voting Interests or equivalent voting securities or
interests.</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:34.2pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:34.2pt;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">&#147;<b>Purchasers</b>&#148;
means the Series A Purchasers and PIM and/or the Prudential Affiliate(s) which
are purchasing any Accepted Notes.</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:34.2pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:34.2pt;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">&#147;<b>Qualified Ground Lease</b>&#148;
means each of the ground leases or subground leases set forth on <u>Schedule
5.10(b)</u> hereto and for a Future Property means any ground lease (a) which
is a direct ground lease granted by the fee owner of real property, (b) which
may be transferred and/or assigned without the consent of the lessor (or as to
which the lease expressly provides that (i) such lease may be transferred
and/or assigned with the consent of the lessor and (ii) such consent shall not
be unreasonably withheld or delayed) or subject to certain reasonable
pre-defined requirements, (c) which has a remaining term (including any renewal
terms exercisable at the sole option of the lessee) of at least twenty (20)
years, (d) under which no material default has occurred and is continuing, (e)
with respect to which a Lien may be granted without the consent of the lessor,
(f) which contains lender protection provisions acceptable to the Required
Holders, including, without limitation, provisions to the effect that (i) the
lessor shall notify any holder of a Lien in such lease of the occurrence of any
default by the lessee under such lease and shall afford such holder the option
to cure such default, and (ii) in the event that such lease is terminated, such
holder shall have the option to enter into a new lease having terms
substantially identical to those contained in the terminated lease, and (g)
which is otherwise acceptable in form and substance to the Required Holders.</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:34.2pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:34.2pt;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">&#147;<b>Qualified
Institutional Buyer</b>&#148; means any Person who is a &#147;qualified
institutional buyer&#148; within the meaning of such term as set forth in Rule
144A(a)(1) under the Securities Act.</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:34.2pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:34.2pt;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">&#147;<b>Real Property</b>&#148;
for any Senior Housing Asset means the Land and the Improvements for such
Senior Housing Asset, including without limitation, parking rights and any and
all real property rights to other ancillary functions necessary for the
operation of such Senior Housing Asset.</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:34.2pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:34.2pt;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">&#147;<b>Rehabilitation Assets</b>&#148;
means healthcare facilities which are used primarily for the provision of
services to patients requiring rehabilitative or restorative care, including
some or all (but not limited to) of the following services:&#160; physical therapy, occupational therapy,
speech therapy and other related services.</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">Schedule B-13<a name="PB_13_193845_3020"></a></font></p>

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</div>
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<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:34.2pt;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">&#147;<b>REIT</b>&#148; means a
Person that is qualified to be treated for tax purposes as a real estate
investment trust under Sections 856-860 of the Code.</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:34.2pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:34.2pt;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">&#147;<b>Related Fund</b>&#148;
means, with respect to any holder of any Note, any fund or entity that (i)
invests in Securities or bank loans, and (ii) is advised or managed by such
holder, the same investment advisor as such holder or by an affiliate of such
holder or such investment advisor.</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:34.2pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:34.2pt;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">&#147;<b>Release</b>&#148; means
any spilling, leaking, pumping, pouring, emitting, emptying, discharging,
injecting, escaping, leaching, migration, dumping, or disposing into the indoor
or outdoor environment, including, without limitation, the abandonment or
discarding of barrels, drums, containers, tanks or other receptacles containing
or previously containing any Hazardous Material.</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:34.2pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:34.2pt;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">&#147;<b>REMIC</b>&#148; means
Real Estate Mortgage Investment Conduit.</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:34.2pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:34.2pt;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">&#147;<b>REMIC Certificates</b>&#148;
means individually or collectively a certificated beneficial interest in a
REMIC.</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:34.2pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:34.2pt;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">&#147;<b>Request for
Purchase</b>&#148; is defined in Section 2B(2).</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:34.2pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:34.2pt;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">&#147;<b>Required Holders</b>&#148;
means, at any time, the holder or holders of a majority of the aggregate
principal amount of the Notes or of a Series of Notes, as the context may
require, from time to time outstanding (exclusive of Notes then owned by any
Credit Party, any Subsidiary or any of their respective Affiliates).</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:34.2pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:34.2pt;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">&#147;<b>Rescheduled Closing
Day</b>&#148; is defined in Section 2B(7).</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:34.2pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:34.2pt;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">&#147;<b>Responsible Officer</b>&#148;
means any Senior Financial Officer and any other officer with responsibility
for the administration of the relevant portion of this Agreement or any other
Transaction Document.</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:34.2pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:34.2pt;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">&#147;<b>Rolling Period</b>&#148;
means, as of any date, the four consecutive Fiscal Quarters ending on or
immediately preceding such date.</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:34.2pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:34.2pt;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">&#147;<b>Securities</b>&#148;
or &#147;<b>Security</b>&#148; shall have the
meaning specified in Section 2(1) of the Securities Act.</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:34.2pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:34.2pt;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">&#147;<b>Secured Debt</b>&#148;
means, as of any given date, the aggregate principal amount of all Total
Indebtedness outstanding at such date that is secured by a Lien.</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:34.2pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:34.2pt;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">&#147;<b>Secured Recourse Debt</b>&#148;
means Secured Debt that is recourse for payment to the Company or its
Subsidiaries.</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:34.2pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:34.2pt;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">&#147;<b>Securities Act</b>&#148;
means the Securities Act of 1933, as amended from time to time, and the rules
and regulations promulgated thereunder from time to time in effect.</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">Schedule B-14<a name="PB_14_193904_7748"></a></font></p>

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</div>
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<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:34.2pt;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">&#147;<b>Senior Financial
Officer</b>&#148; means the chief executive officer, chief financial officer,
principal accounting officer, treasurer or controller of the Company.</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:34.2pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:34.2pt;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">&#147;<b>Senior Housing Assets</b>&#148;
means any Properties on which the improvements consist only of one or more of
the following:&#160; (a) senior apartments;
(b) independent living facilities; (c) congregate communities; (d) assisted living
facilities; (e) nursing homes; (f) hospitals; and (g) other Properties
primarily used for senior citizen residences or health care services, together
with other improvements incidental thereto.</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:34.2pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:34.2pt;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">&#147;<b>Series</b>&#148;
is defined in Section 1C.</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:34.2pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:34.2pt;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">&#147;<b>Series A Closing Day</b>&#148;
is defined in Section 3.</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:34.2pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:34.2pt;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">&#147;<b>Series A Purchasers</b>&#148;
means (i) The Prudential Insurance Company of America, as the purchaser of the
Series A-1 Notes, and (ii) Pruco Life Insurance Company and United of Omaha
Life Insurance Company, as the purchasers of the Series A-2 Notes.</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:34.2pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:34.2pt;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">&#147;<b>Series A Notes</b>&#148;
is defined in Section 1B.</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:34.2pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:34.2pt;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">&#147;<b>Series A-1 Notes</b>&#148;
is defined in Section 1A.</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:34.2pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:34.2pt;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">&#147;<b>Series A-2 Notes</b>&#148;
is defined in Section 1B.</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:34.2pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:34.2pt;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">&#147;<b>Shelf Notes</b>&#148; is
defined in Section 1C.</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:34.2pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:34.2pt;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">&#147;<b>Significant Lease</b>&#148;
means, for any specified calendar year, any Lease under which the Company or
one of its Subsidiaries is the lessor and which Lease provides for annual
minimum cash rent payments of $1,000,000 or more during such calendar year
(notwithstanding the amount of lease payments in prior or subsequent years).</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:34.2pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:34.2pt;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">&#147;<b>SNFs</b>&#148; means
skilled nursing facilities.</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:34.2pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:34.2pt;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">&#147;<b>S&amp;P</b>&#148; means
Standard &amp; Poor&#146;s Ratings Group, a division of The McGraw-Hill Companies,
Inc. and any successor thereto.</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:34.2pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:34.2pt;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">&#147;<b>Stock</b>&#148; means
shares of capital stock, beneficial or partnership interests, participations or
other equivalents (regardless of how designated) of or in a corporation or
equivalent entity, whether voting or non-voting, and includes, without
limitation, common stock, but excluding any preferred stock or other preferred
equity security.</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:34.2pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:34.2pt;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">&#147;<b>Stock Equivalents</b>&#148;
means all securities (other than Stock) convertible into or exchangeable for
Stock at the option of the holder, and all warrants, options or other rights to
purchase or subscribe for any stock, whether or not presently convertible,
exchangeable or exercisable.</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">Schedule B-15<a name="PB_15_193915_141"></a></font></p>

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</div>
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<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:34.2pt;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">&#147;<b>Subsidiary</b>&#148; of
any Person means any corporation, partnership, joint venture, limited liability
company, trust or estate (i) of which (or in which) more than 50% of (a) the
issued and outstanding capital stock having ordinary voting power to elect a
majority of the Board of Directors of such corporation (irrespective of whether
at the time capital stock of any other class or classes of such corporation
shall or might have voting power upon the occurrence of any contingency), (b)
the interest in the capital or profits of such partnership, joint venture or
limited liability company, or (c) the beneficial interest in such trust or
estate, in each case, is at the time directly or indirectly owned or controlled
by such Person, by such Person and one or more of its other Subsidiaries or by
one or more of such Person&#146;s other Subsidiaries, or (ii) the accounts of which
would appear on the consolidated financial statements of such Person in
accordance with GAAP.&#160; Unless the context
otherwise clearly requires, any reference to a &#147;Subsidiary&#148; is a reference to a
Subsidiary of the Company.</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:34.2pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:34.2pt;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">&#147;<b>SVO</b>&#148;
means the Securities Valuation Office of the National Association of Insurance
Commissioners (or any successor organization acceding to the authority
thereof).</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:34.2pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:34.2pt;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">&#147;<b>Tangible Net Worth</b>&#148;
means for each applicable period, total stockholders&#146; equity on the Company&#146;s
consolidated balance sheet as reported in its Form 10-K or 10-Q less all
amounts appearing on the assets side of its consolidated balance sheet
representing an intangible asset under GAAP.</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:34.2pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:34.2pt;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">&#147;<b>TMVUA</b>&#148; means,
at any time of determination, the &#147;total market value of unencumbered assets&#148;,
to be computed as the sum of the following at such time (a) TMVUA Real Property
NOI <u>divided by</u> the applicable TMVUA Cap Rates for all TMVUA Real
Properties owned for four consecutive quarters or longer at such time, and (b)
the Investment Amount of all TMVUA Real Properties owned for less than four
consecutive quarters at such time.</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:34.2pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:34.2pt;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">&#147;<b>TMVUA Cap Rates</b>&#148;
means:&#160; (i) 8.00% for ALFs or, if any one
or more Principal Credit Facilities provides for a higher capitalization rate
for ALFs, then the highest capitalization rate for ALFs; (ii) 10.00% for SNFs
or, if any one or more Principal Credit Facilities provides for a higher
capitalization rate for SNFs, then the highest capitalization rate for SNFs;
and (iii) 11.50% for schools or, if any one or more Principal Credit Facilities
provides for a higher capitalization rate for schools, then the highest such
capitalization rate for schools.</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:34.2pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:34.2pt;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">&#147;<b>TMVUA Real Properties</b>&#148;
means real property interests in ALFs, SNFs or schools, in each case which are
(i) located in the United States of America, (ii) 100% owned in fee simple by
the Company or a Guarantor, and (iii) not subject to any consensual Lien, and &#147;<b>TMVUA Real Property</b>&#148; means any one of them.</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:34.2pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:34.2pt;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">&#147;<b>TMVUA Real Property NOI</b>&#148;
means, with respect to any TMVUA Real Property for the Rolling Period then or
most recently ended (without duplication), (i) Property Income for such period <u>minus</u>
(ii) Property Expenses for such period.</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:34.2pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:34.2pt;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">&#147;<b>Total Asset Value</b>&#148;
means the book value, without giving effect to depreciation, of all assets of
the Company and its Subsidiaries at such time, less (a) the amount, if any, of
any investments in any unconsolidated subsidiaries, joint ventures or other
similar entities, and (b) all amounts appearing on the assets side of its
consolidated balance sheet separately identifiable as intangible assets under
GAAP.</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:34.2pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:34.2pt;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">&#147;<b>Total Indebtedness</b>&#148;
means, as of any date of determination and without duplication, all
Indebtedness for Borrowed Money of the Company and its Subsidiaries.</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">Schedule B-16<a name="PB_16_193926_7608"></a></font></p>

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</div>
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<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:34.2pt;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">&#147;<b>Transaction
Documents</b>&#148; means this Agreement (including the Multiparty Guaranty),
the Notes, and any and all other agreements, documents, certificates and
instruments from time to time executed and delivered by or on behalf of any
Credit Party related thereto.</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:34.2pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:34.2pt;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">&#147;<b>Unsecured Debt</b>&#148;
means, as of any date of determination, the aggregate principal amount of all
Total Indebtedness outstanding at such date that is not Secured Debt.</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:34.2pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:34.2pt;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">&#147;<b>Unsecured Debt Service</b>&#148;
means, for a given period, Debt Service with respect to Unsecured Debt.</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:34.2pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:34.2pt;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">&#147;<b>USA Patriot Act</b>&#148;
means United States Public Law 107-56, Uniting and Strengthening America by
Providing Appropriate Tools Required to Intercept and Obstruct Terrorism (USA)
PATRIOT ACT) Act of 2001, as amended from time to time, and the rules and
regulations promulgated thereunder from time to time in effect.</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:34.2pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:34.2pt;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">&#147;<b>Voting Interests</b>&#148;
means shares of capital stock issued by a corporation, or equivalent equity
interests in any other Person, the holders of which are ordinarily, in the
absence of contingencies, entitled to vote for the election of directors (or
persons performing similar functions) of such Person, even if the right so to
vote has been suspended by the happening of such a contingency.</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:34.2pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:34.2pt;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">&#147;<b>Wholly-owned Subsidiary</b>&#148;
means, at any time, any Subsidiary one hundred percent of all of the equity
interests (except directors&#146; qualifying shares) and voting interests of which
are owned by any one or more of the Company and the Company&#146;s other
Wholly-Owned Subsidiaries at such time.</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">Schedule B-17<a name="PB_17_193940_8146"></a></font></p>

<div style="margin:0in 0in .0001pt;"><hr size="3" width="100%" noshade color="#010101" align="left"></div>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

</div>
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<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><b><font size="3" face="Times New Roman" style="font-size:12.0pt;font-weight:bold;">EXHIBIT
A-1</font></b></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">&nbsp;</font></b></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><b><font size="3" face="Times New Roman" style="font-size:12.0pt;font-weight:bold;">[FORM OF
SERIES A-1 NOTE]</font></b></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><b><font size="3" face="Times New Roman" style="font-size:12.0pt;font-weight:bold;">LTC PROPERTIES, INC.</font></b></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">&nbsp;</font></b></p>

<p align="center" style="font-size:12.0pt;margin:0in 0in .0001pt;text-align:center;"><b><font size="3" face="Times New Roman" style="font-size:12.0pt;font-weight:bold;">5.26% </font></b><b>SERIES A-1 SENIOR NOTE DUE JULY 14, 2015</b></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">&nbsp;</font></b></p>

<table border="0" cellspacing="0" cellpadding="0" width="100%" style="border-collapse:collapse;width:100.0%;">
 <tr>
  <td width="38%" valign="top" style="padding:0in 0in 0in 0in;width:38.76%;">
  <p style="margin:0in 0in .0001pt;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">No. [___]</font></p>
  </td>
  <td width="61%" valign="top" style="padding:0in 0in 0in 0in;width:61.24%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">[Date]</font></p>
  </td>
 </tr>
 <tr>
  <td width="38%" valign="top" style="padding:0in 0in 0in 0in;width:38.76%;">
  <p style="margin:0in 0in .0001pt;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">$[____]</font></p>
  </td>
  <td width="61%" valign="top" style="padding:0in 0in 0in 0in;width:61.24%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">PPN 502175 A*3</font></p>
  </td>
 </tr>
</table>

<p style="margin:0in 0in .0001pt;text-align:justify;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="font-size:12.0pt;margin:0in 0in .0001pt;text-align:justify;"><b><font size="3" face="Times New Roman" style="font-size:12.0pt;font-weight:bold;">FOR VALUE RECEIVED</font></b>, the undersigned, LTC
PROPERTIES, INC. (herein called the &#147;<b>Company</b>&#148;),
a corporation organized under the laws of the State of Maryland, hereby
promises to pay to [_____________], or registered assigns, the principal sum of
[___________] DOLLARS on July 14, 2015, with interest (computed on the basis of
a 360-day year of twelve 30-day months) (a) on the unpaid balance thereof at
the rate of 5.26% per annum from the date hereof, payable at maturity and
quarterly, on the 14th day of each January, April, July and October in each
year, commencing with the January 14, April 14, July 14 or October 14 next
succeeding the date hereof until the principal hereof shall have become due and
payable, and (b) at a rate per annum from time to time equal to the greater of
(i) 7.26% and (ii) 2% over the rate of interest publicly announced by JPMorgan
Chase Bank from time to time in New York, New York as its &#147;base&#148; or &#147;prime&#148;
rate (i) on any overdue payment of interest, and (ii) following the occurrence
and during the continuance of an Event of Default (as defined in the Agreement
referred to below) on the unpaid principal balance, any overdue payment of
interest and any overdue payment of any Make-Whole Amount, in the case of each
of clause (i) and (ii), payable quarterly as aforesaid (or, at the option of
the registered holder hereof, on demand).</p>

<p style="margin:0in 0in .0001pt;text-align:justify;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">Payments
of principal of, interest on and any Make-Whole Amount with respect to this
Note are to be made in lawful money of the United States of America at JPMorgan
Chase Bank, New York, New York or at such other place as the holder hereof
shall designate to the Company in writing as provided in the Agreement referred
to below.</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">This
Note is one of a series of senior notes (herein called the &#147;<b>Notes</b>&#148;) issued pursuant to a Note Purchase
and Private Shelf Agreement, dated as of July 14, 2010 (as from time to time
amended, restated, supplemented or otherwise modified, the &#147;<b>Agreement</b>&#148;), between the Company and the
other Credit Parties named therein, on the one hand, and the other Persons
party thereto, on the other hand, and is entitled to the benefits thereof.&#160; Each holder of this Note will be deemed, by
its acceptance hereof, to have made the representation set forth in Section
6.2.</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">This
Note is a registered Note and, as provided in the Agreement, upon surrender of
this Note for registration of transfer, duly endorsed, or accompanied by a
written instrument of transfer duly executed, by the registered holder hereof
or such holder&#146;s attorney duly authorized in writing, a replacement Note for a
like principal amount will be issued to, and registered in the name of, the
transferee.&#160; Prior to due presentment for
registration of transfer, the Company may treat the person in whose name this
Note is registered as the owner hereof for the purpose of receiving payment and
for all other purposes, and the Company will not be affected by any notice to
the contrary.</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">Schedule A-1-1<a name="PB_1_113607_227"></a></font></p>

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</div>
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<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">This
Note is subject to optional prepayment, in whole or from time to time in part,
at the times and on the terms specified in the Agreement, but not otherwise.</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">The
Notes have been unconditionally guaranteed by certain of the Company&#146;s
Subsidiaries and other Affiliates pursuant to the terms of the Multiparty
Guaranty.</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">If
an Event of Default occurs and is continuing, the principal of this Note may be
declared or otherwise become due and payable in the manner, at the price
(including any applicable Make-Whole Amount) and with the effect, provided in
the Agreement.</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">Capitalized
terms used and not otherwise defined herein shall have the meanings provided in
the Agreement.</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">This
Note shall be construed and enforced in accordance with, and the rights of the
parties shall be governed by, the law of the State of New York excluding
choice-of-law principles of the law of such state that would permit the
application of the laws of a jurisdiction other than such state.</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<table border="0" cellspacing="0" cellpadding="0" width="100%" style="border-collapse:collapse;width:100.0%;">
 <tr>
  <td width="58%" valign="top" style="padding:0in 0in 0in 0in;width:58.76%;">
  <p style="margin:0in 0in .0001pt;"><b><font size="2" face="Times New Roman" style="font-size:1.0pt;font-weight:bold;">&nbsp;</font></b></p>
  </td>
  <td width="41%" colspan="2" valign="top" style="padding:0in 0in 0in 0in;width:41.24%;">
  <p style="margin:0in 0in .0001pt;"><b><font size="3" face="Times New Roman" style="font-size:12.0pt;font-weight:bold;">LTC PROPERTIES, INC.</font></b></p>
  </td>
 </tr>
 <tr>
  <td width="58%" valign="top" style="padding:0in 0in 0in 0in;width:58.76%;">
  <p style="margin:0in 0in .0001pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">&nbsp;</font></b></p>
  </td>
  <td width="41%" colspan="2" valign="top" style="padding:0in 0in 0in 0in;width:41.24%;">
  <p style="margin:0in 0in .0001pt;"><b><font size="3" face="Times New Roman" style="font-size:12.0pt;font-weight:bold;">&nbsp;</font></b></p>
  </td>
 </tr>
 <tr>
  <td width="58%" valign="top" style="padding:0in 0in 0in 0in;width:58.76%;">
  <p style="margin:0in 0in .0001pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">&nbsp;</font></b></p>
  </td>
  <td width="3%" valign="top" style="padding:0in 0in 0in 0in;width:3.9%;">
  <p style="margin:0in 0in .0001pt;"><b><font size="3" face="Times New Roman" style="font-size:12.0pt;font-weight:bold;">&nbsp;</font></b></p>
  </td>
  <td width="37%" valign="top" style="padding:0in 0in 0in 0in;width:37.34%;">
  <p style="margin:0in 0in .0001pt;"><b><font size="3" face="Times New Roman" style="font-size:12.0pt;font-weight:bold;">&nbsp;</font></b></p>
  </td>
 </tr>
 <tr>
  <td width="58%" valign="top" style="padding:0in 0in 0in 0in;width:58.76%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="3%" valign="top" style="padding:0in 0in 0in 0in;width:3.9%;">
  <p style="margin:0in 0in .0001pt;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">By:</font></p>
  </td>
  <td width="37%" valign="top" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0in 0in 0in 0in;width:37.34%;">
  <p style="margin:0in 0in .0001pt;"><font size="3" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="58%" valign="top" style="padding:0in 0in 0in 0in;width:58.76%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="3%" valign="top" style="padding:0in 0in 0in 0in;width:3.9%;">
  <p style="margin:0in 0in .0001pt;"><font size="3" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="37%" valign="top" style="border:none;padding:0in 0in 0in 0in;width:37.34%;">
  <p style="margin:0in 0in .0001pt 30.0pt;text-indent:-10.0pt;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">Name:</font></p>
  </td>
 </tr>
 <tr>
  <td width="58%" valign="top" style="padding:0in 0in 0in 0in;width:58.76%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="3%" valign="top" style="padding:0in 0in 0in 0in;width:3.9%;">
  <p style="margin:0in 0in .0001pt;"><font size="3" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="37%" valign="top" style="padding:0in 0in 0in 0in;width:37.34%;">
  <p style="margin:0in 0in .0001pt 30.0pt;text-indent:-10.0pt;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">Title:</font></p>
  </td>
 </tr>
</table>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">Schedule A-1-2<a name="PB_2_113715_5435"></a></font></p>

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</div>
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<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><b><font size="3" face="Times New Roman" style="font-size:12.0pt;font-weight:bold;">EXHIBIT
A-2</font></b></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">&nbsp;</font></b></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><b><font size="3" face="Times New Roman" style="font-size:12.0pt;font-weight:bold;">[FORM OF
SERIES A-2 NOTE]</font></b></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><b><font size="3" face="Times New Roman" style="font-size:12.0pt;font-weight:bold;">LTC PROPERTIES, INC.</font></b></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">&nbsp;</font></b></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><b><font size="3" face="Times New Roman" style="font-size:12.0pt;font-weight:bold;">5.74% SERIES A-2 SENIOR NOTE DUE
JANUARY 14, 2019</font></b></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">&nbsp;</font></b></p>

<table border="0" cellspacing="0" cellpadding="0" width="100%" style="border-collapse:collapse;width:100.0%;">
 <tr>
  <td width="38%" valign="top" style="padding:0in 0in 0in 0in;width:38.76%;">
  <p style="margin:0in 0in .0001pt;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">No. [___]</font></p>
  </td>
  <td width="61%" valign="top" style="padding:0in 0in 0in 0in;width:61.24%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">[Date]</font></p>
  </td>
 </tr>
 <tr>
  <td width="38%" valign="top" style="padding:0in 0in 0in 0in;width:38.76%;">
  <p style="margin:0in 0in .0001pt;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">$[____]</font></p>
  </td>
  <td width="61%" valign="top" style="padding:0in 0in 0in 0in;width:61.24%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">PPN 502175 A@1</font></p>
  </td>
 </tr>
</table>

<p style="margin:0in 0in .0001pt;text-align:justify;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="font-size:12.0pt;margin:0in 0in .0001pt;text-align:justify;"><b><font size="3" face="Times New Roman" style="font-size:12.0pt;font-weight:bold;">FOR VALUE RECEIVED</font></b>, the undersigned, LTC
PROPERTIES, INC. (herein called the &#147;<b>Company</b>&#148;),
a corporation organized under the laws of the State of Maryland, hereby
promises to pay to [_____________], or registered assigns, the principal sum of
[___________] DOLLARS on January 14, 2019, with interest (computed on the basis
of a 360-day year of twelve 30-day months) (a) on the unpaid balance thereof at
the rate of 5.74% per annum from the date hereof, payable at maturity and
quarterly, on the 14th day of each January, April, July and October in each
year, commencing with the January 14, April 14, July 14 or October 14 next
succeeding the date hereof until the principal hereof shall have become due and
payable, and (b) at a rate per annum from time to time equal to the greater of
(i) 7.74% and (ii) 2% over the rate of interest publicly announced by JPMorgan
Chase Bank from time to time in New York, New York as its &#147;base&#148; or &#147;prime&#148;
rate (i) on any overdue payment of interest, and (ii) following the occurrence
and during the continuance of an Event of Default (as defined in the Agreement
referred to below) on the unpaid principal balance, any overdue payment of
interest and any overdue payment of any Make-Whole Amount, in the case of each
of clause (i) and (ii), payable quarterly as aforesaid (or, at the option of
the registered holder hereof, on demand).</p>

<p style="margin:0in 0in .0001pt;text-align:justify;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">Payments
of principal of, interest on and any Make-Whole Amount with respect to this
Note are to be made in lawful money of the United States of America at JPMorgan
Chase Bank, New York, New York or at such other place as the holder hereof
shall designate to the Company in writing as provided in the Agreement referred
to below.</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">This
Note is one of a series of senior notes (herein called the &#147;<b>Notes</b>&#148;) issued pursuant to a Note Purchase
and Private Shelf Agreement, dated as of July 14, 2010 (as from time to time
amended, restated, supplemented or otherwise modified, the &#147;<b>Agreement</b>&#148;), between the Company and the
other Credit Parties named therein, on the one hand, and the other Persons
party thereto, on the other hand, and is entitled to the benefits thereof.&#160; Each holder of this Note will be deemed, by
its acceptance hereof, to have made the representation set forth in Section
6.2.</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">This
Note is a registered Note and, as provided in the Agreement, upon surrender of
this Note for registration of transfer, duly endorsed, or accompanied by a
written instrument of transfer duly executed, by the registered holder hereof
or such holder&#146;s attorney duly authorized in writing, a replacement Note for a
like principal amount will be issued to, and registered in the name of, the
transferee.&#160; Prior to due presentment for
registration of transfer, the Company may treat the person in whose name this
Note is registered as the owner hereof for the purpose of receiving payment and
for all other purposes, and the Company will not be affected by any notice to
the contrary.</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">Exhibit A-2-1<a name="PB_1_113758_9163"></a></font></p>

<div style="margin:0in 0in .0001pt;"><hr size="3" width="100%" noshade color="#010101" align="left"></div>

</div>
<!-- SEQ.=1,FOLIO='Exhibit A-2-1',FILE='C:\JMS\sjayara\10-12718-1\task4204252\12718-1-ki-19.htm',USER='105898',CD='Jul 28 19:09 2010' -->


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<div>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">The
Company will make required prepayments of principal on the dates and in the
amounts specified in the Agreement.&#160; This
Note is also subject to optional prepayment, in whole or from time to time in
part, at the times and on the terms specified in the Agreement, but not
otherwise.</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">The
Notes have been unconditionally guaranteed by certain of the Company&#146;s
Subsidiaries and other Affiliates pursuant to the terms of the Multiparty
Guaranty.</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">If
an Event of Default occurs and is continuing, the principal of this Note may be
declared or otherwise become due and payable in the manner, at the price
(including any applicable Make-Whole Amount) and with the effect, provided in
the Agreement.</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">Capitalized
terms used and not otherwise defined herein shall have the meanings provided in
the Agreement.</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">This
Note shall be construed and enforced in accordance with, and the rights of the
parties shall be governed by, the law of the State of New York excluding
choice-of-law principles of the law of such state that would permit the
application of the laws of a jurisdiction other than such state.</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<table border="0" cellspacing="0" cellpadding="0" width="100%" style="border-collapse:collapse;width:100.0%;">
 <tr>
  <td width="58%" valign="top" style="padding:0in 0in 0in 0in;width:58.76%;">
  <p style="margin:0in 0in .0001pt;"><b><font size="2" face="Times New Roman" style="font-size:1.0pt;font-weight:bold;">&nbsp;</font></b></p>
  </td>
  <td width="41%" colspan="2" valign="top" style="padding:0in 0in 0in 0in;width:41.24%;">
  <p style="margin:0in 0in .0001pt;"><b><font size="3" face="Times New Roman" style="font-size:12.0pt;font-weight:bold;">LTC PROPERTIES, INC.</font></b></p>
  </td>
 </tr>
 <tr>
  <td width="58%" valign="top" style="padding:0in 0in 0in 0in;width:58.76%;">
  <p style="margin:0in 0in .0001pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">&nbsp;</font></b></p>
  </td>
  <td width="41%" colspan="2" valign="top" style="padding:0in 0in 0in 0in;width:41.24%;">
  <p style="margin:0in 0in .0001pt;"><b><font size="3" face="Times New Roman" style="font-size:12.0pt;font-weight:bold;">&nbsp;</font></b></p>
  </td>
 </tr>
 <tr>
  <td width="58%" valign="top" style="padding:0in 0in 0in 0in;width:58.76%;">
  <p style="margin:0in 0in .0001pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">&nbsp;</font></b></p>
  </td>
  <td width="3%" valign="top" style="padding:0in 0in 0in 0in;width:3.9%;">
  <p style="margin:0in 0in .0001pt;"><b><font size="3" face="Times New Roman" style="font-size:12.0pt;font-weight:bold;">&nbsp;</font></b></p>
  </td>
  <td width="37%" valign="top" style="padding:0in 0in 0in 0in;width:37.34%;">
  <p style="margin:0in 0in .0001pt;"><b><font size="3" face="Times New Roman" style="font-size:12.0pt;font-weight:bold;">&nbsp;</font></b></p>
  </td>
 </tr>
 <tr>
  <td width="58%" valign="top" style="padding:0in 0in 0in 0in;width:58.76%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="3%" valign="top" style="padding:0in 0in 0in 0in;width:3.9%;">
  <p style="margin:0in 0in .0001pt;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">By:</font></p>
  </td>
  <td width="37%" valign="top" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0in 0in 0in 0in;width:37.34%;">
  <p style="margin:0in 0in .0001pt;"><font size="3" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="58%" valign="top" style="padding:0in 0in 0in 0in;width:58.76%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="3%" valign="top" style="padding:0in 0in 0in 0in;width:3.9%;">
  <p style="margin:0in 0in .0001pt;"><font size="3" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="37%" valign="top" style="border:none;padding:0in 0in 0in 0in;width:37.34%;">
  <p style="margin:0in 0in .0001pt 30.0pt;text-indent:-10.0pt;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">Name:</font></p>
  </td>
 </tr>
 <tr>
  <td width="58%" valign="top" style="padding:0in 0in 0in 0in;width:58.76%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="3%" valign="top" style="padding:0in 0in 0in 0in;width:3.9%;">
  <p style="margin:0in 0in .0001pt;"><font size="3" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="37%" valign="top" style="padding:0in 0in 0in 0in;width:37.34%;">
  <p style="margin:0in 0in .0001pt 30.0pt;text-indent:-10.0pt;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">Title:</font></p>
  </td>
 </tr>
</table>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">Exhibit A-2-2<a name="PB_2_205746_7056"></a></font></p>

<div style="margin:0in 0in .0001pt;"><hr size="3" width="100%" noshade color="#010101" align="left"></div>

</div>
<!-- SEQ.=1,FOLIO='Exhibit A-2-2',FILE='C:\JMS\sjayara\10-12718-1\task4204252\12718-1-ki-19.htm',USER='105898',CD='Jul 28 19:09 2010' -->


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<div style="font-family:Times New Roman;">

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><b><font size="3" face="Times New Roman" style="font-size:12.0pt;font-weight:bold;">EXHIBIT
A-3</font></b></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">&nbsp;</font></b></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><b><font size="3" face="Times New Roman" style="font-size:12.0pt;font-weight:bold;">[FORM OF
SHELF NOTE]</font></b></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">&nbsp;</font></b></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><b><font size="3" face="Times New Roman" style="font-size:12.0pt;font-weight:bold;">LTC PROPERTIES, INC.</font></b></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">&nbsp;</font></b></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><b><font size="3" face="Times New Roman" style="font-size:12.0pt;font-weight:bold;">SERIES ____ SENIOR NOTE</font></b></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">&nbsp;</font></b></p>

<p style="margin:0in 0in .0001pt;text-align:justify;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">No. [___]</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">ORIGINAL PRINCIPAL
AMOUNT:</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">ORIGINAL ISSUE DATE:</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">INTEREST RATE:</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">INTEREST PAYMENT
DATES:&#160; [Quarterly][Semi-annually] on
each [STATE DATES]</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">FINAL MATURITY DATE:</font><font size="1" style="font-size:8.0pt;position:relative;top:-4.0pt;">1</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">PRINCIPAL PREPAYMENT
DATES AND AMOUNTS:</font><font size="1" style="font-size:8.0pt;position:relative;top:-4.0pt;">2</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="font-size:12.0pt;margin:0in 0in .0001pt;text-align:justify;"><b><font size="3" face="Times New Roman" style="font-size:12.0pt;font-weight:bold;">FOR VALUE RECEIVED</font></b>, the undersigned, LTC
PROPERTIES, INC. (herein called the &#147;<b>Company</b>&#148;),
a corporation organized under the laws of the State of Maryland, hereby
promises to pay to [________________], or registered assigns, the principal sum
of [_____________________] [DOLLARS] [on the Final Maturity Date specified
above] [, payable on the Principal Prepayment Dates and in the amounts
specified above, and on the Final Maturity Date as specified above in an amount
equal to the unpaid balance of the principal hereof,] with interest (computed
on the basis of a 360-day year of twelve 30-day months) (a) on the unpaid
balance thereof at the Interest Rate per annum specified above, payable on the
Final Maturity Date specified above and on each Interest Payment Date specified
above, commencing with the Interest Payment Date next succeeding the date
hereof, until the principal hereof shall have become due and payable, and (b)
at a rate per annum from time to time equal to the Default Rate (i) on any
overdue payment of interest, and (ii) following the occurrence and during the
continuance of an Event of Default (as defined in the Agreement referred to
below) on the unpaid principal balance, any overdue payment of interest and any
overdue payment of any Make-Whole Amount, in the case of each of clause (i) and
(ii), payable on each Interest Payment Date as aforesaid (or, at the option of
the registered holder hereof, on demand).</p>

<p style="margin:0in 0in .0001pt;text-align:justify;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">Payments
of principal, Make-Whole Amount, if any, and interest are to be made in lawful
money of the United States of America at JPMorgan Chase Bank, New York, New
York or at such other place as the holder hereof shall designate to the Company
in writing.</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">This
Note is one of a series of senior notes (herein called the &#147;<b>Notes</b>&#148;) issued pursuant to a Note Purchase
and Private Shelf Agreement, dated as of July 14, 2010 (as from time to time
amended, restated, supplemented or otherwise modified, the &#147;<b>Agreement</b>&#148;), between the Company and the
other Credit Parties named therein, on the one hand, and the other Persons party
thereto, on the other hand, and is entitled to the benefits thereof.&#160; Each holder of this Note will be deemed, by
its acceptance hereof, to have made the representations set forth in Section
6.2 of the Agreement.</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<div style="margin:0in 0in .0001pt;"><hr size="1" width="25%" noshade color="black" align="left"></div>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">1 The Final Maturity Date must be no more than 10
years after the original issuance date</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">2 The Remaining Average Life must be no more than 7
years after the original issuance date.</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">Exhibit A-3-1<a name="PB_1_114156_6780"></a></font></p>

<div style="margin:0in 0in .0001pt;"><hr size="3" width="100%" noshade color="#010101" align="left"></div>

</div>
<!-- SEQ.=1,FOLIO='Exhibit A-3-1',FILE='C:\JMS\sjayara\10-12718-1\task4204252\12718-1-ki-19.htm',USER='105898',CD='Jul 28 19:09 2010' -->


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<div>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">This
Note is a registered Note and, as provided in the Agreement, upon surrender of
this Note for registration of transfer, duly endorsed, or accompanied by a
written instrument of transfer duly executed, by the registered holder hereof
or such holder&#146;s attorney duly authorized in writing, a replacement Note for
the then outstanding principal amount will be issued to, and registered in the
name of, the transferee.&#160; Prior to due
presentment for registration of transfer, the Company may treat the person in
whose name this Note is registered as the owner hereof for the purpose of
receiving payment and for all other purposes, and the Company shall not be
affected by any notice to the contrary.</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">This
Note is also subject to optional prepayment, in whole or from time to time in
part, at the times and on the terms specified in the Agreement, but not
otherwise.</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">The
Notes have been unconditionally guaranteed by certain of the Company&#146;s
Subsidiaries and other Affiliates pursuant to the terms of the Multiparty
Guaranty.</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">If
an Event of Default shall occur and be continuing, the principal of this Note
may be declared or otherwise become due and payable in the manner, at the price
(including any applicable Make-Whole Amount), and with the effect, provided in
the Agreement.</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">Capitalized
terms used and not otherwise defined herein shall have the meanings provided in
the Agreement.</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;page-break-after:avoid;text-align:justify;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">This Note shall be
construed and enforced in accordance with, and the rights of the parties shall
be governed by, the law of the State of New York excluding choice-of-law
principles of the law of such state that would permit the application of the
laws of a jurisdiction other than such State.</font></p>

<p style="margin:0in 0in .0001pt;page-break-after:avoid;text-align:justify;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<table border="0" cellspacing="0" cellpadding="0" width="100%" style="border-collapse:collapse;width:100.0%;">
 <tr>
  <td width="58%" valign="top" style="padding:0in 0in 0in 0in;width:58.76%;">
  <p style="margin:0in 0in .0001pt;"><b><font size="2" face="Times New Roman" style="font-size:1.0pt;font-weight:bold;">&nbsp;</font></b></p>
  </td>
  <td width="41%" colspan="2" valign="top" style="padding:0in 0in 0in 0in;width:41.24%;">
  <p style="margin:0in 0in .0001pt;"><b><font size="3" face="Times New Roman" style="font-size:12.0pt;font-weight:bold;">LTC PROPERTIES, INC.</font></b></p>
  </td>
 </tr>
 <tr>
  <td width="58%" valign="top" style="padding:0in 0in 0in 0in;width:58.76%;">
  <p style="margin:0in 0in .0001pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">&nbsp;</font></b></p>
  </td>
  <td width="41%" colspan="2" valign="top" style="padding:0in 0in 0in 0in;width:41.24%;">
  <p style="margin:0in 0in .0001pt;"><b><font size="3" face="Times New Roman" style="font-size:12.0pt;font-weight:bold;">&nbsp;</font></b></p>
  </td>
 </tr>
 <tr>
  <td width="58%" valign="top" style="padding:0in 0in 0in 0in;width:58.76%;">
  <p style="margin:0in 0in .0001pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">&nbsp;</font></b></p>
  </td>
  <td width="3%" valign="top" style="padding:0in 0in 0in 0in;width:3.9%;">
  <p style="margin:0in 0in .0001pt;"><b><font size="3" face="Times New Roman" style="font-size:12.0pt;font-weight:bold;">&nbsp;</font></b></p>
  </td>
  <td width="37%" valign="top" style="padding:0in 0in 0in 0in;width:37.34%;">
  <p style="margin:0in 0in .0001pt;"><b><font size="3" face="Times New Roman" style="font-size:12.0pt;font-weight:bold;">&nbsp;</font></b></p>
  </td>
 </tr>
 <tr>
  <td width="58%" valign="top" style="padding:0in 0in 0in 0in;width:58.76%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="3%" valign="top" style="padding:0in 0in 0in 0in;width:3.9%;">
  <p style="margin:0in 0in .0001pt;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">By:</font></p>
  </td>
  <td width="37%" valign="top" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0in 0in 0in 0in;width:37.34%;">
  <p style="margin:0in 0in .0001pt;"><font size="3" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="58%" valign="top" style="padding:0in 0in 0in 0in;width:58.76%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="3%" valign="top" style="padding:0in 0in 0in 0in;width:3.9%;">
  <p style="margin:0in 0in .0001pt;"><font size="3" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="37%" valign="top" style="border:none;padding:0in 0in 0in 0in;width:37.34%;">
  <p style="margin:0in 0in .0001pt 30.0pt;text-indent:-10.0pt;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">Name:</font></p>
  </td>
 </tr>
 <tr>
  <td width="58%" valign="top" style="padding:0in 0in 0in 0in;width:58.76%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="3%" valign="top" style="padding:0in 0in 0in 0in;width:3.9%;">
  <p style="margin:0in 0in .0001pt;"><font size="3" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="37%" valign="top" style="padding:0in 0in 0in 0in;width:37.34%;">
  <p style="margin:0in 0in .0001pt 30.0pt;text-indent:-10.0pt;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">Title:</font></p>
  </td>
 </tr>
</table>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">Exhibit A-3-2<a name="PB_2_114210_5026"></a></font></p>

<div style="margin:0in 0in .0001pt;"><hr size="3" width="100%" noshade color="#010101" align="left"></div>

</div>
<!-- SEQ.=1,FOLIO='Exhibit A-3-2',FILE='C:\JMS\sjayara\10-12718-1\task4204252\12718-1-ki-19.htm',USER='105898',CD='Jul 28 19:09 2010' -->



<br clear="all" style="page-break-before:always;">
<div style="font-family:Times New Roman;">

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><b><font size="3" face="Times New Roman" style="font-size:12.0pt;font-weight:bold;">EXHIBIT&nbsp;B</font></b></p>

<p align="right" style="margin:0in 0in .0001pt;text-align:right;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">&nbsp;</font></b></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><b><font size="3" face="Times New Roman" style="font-size:12.0pt;font-weight:bold;">[FORM OF REQUEST FOR PURCHASE]</font></b></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">&nbsp;</font></b></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><b><font size="3" face="Times New Roman" style="font-size:12.0pt;font-weight:bold;">LTC PROPERTIES, INC.</font></b></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">&nbsp;</font></b></p>

<p style="margin:0in 0in .0001pt;text-align:justify;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">Reference
is made to the Note Purchase and Private Shelf Agreement (the <b>&#147;Agreement&#148;</b>), dated as of July 14, 2010, between LTC
Properties, Inc. (the <b>&#147;Company&#148;</b>) and
the other Persons named therein as parties thereto.&#160; All terms herein that are defined in the
Agreement have the respective meanings specified in the Agreement.&#160; Pursuant to Section 2B(3) of the Agreement, the
Company hereby makes the following Request for Purchase:</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">Individual
specifications of the notes covered hereby (the <b>&#147;Notes&#148;</b>):</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">&nbsp;</font></p>

<table border="0" cellspacing="0" cellpadding="0" width="77%" style="border-collapse:collapse;width:77.0%;">
 <tr style="page-break-inside:avoid;">
  <td width="26%" style="padding:0in 5.4pt 0in 5.4pt;width:26.12%;">
  <p style="margin:0in 0in .0001pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Principal Amount</font></b></p>
  </td>
  <td width="26%" style="padding:0in 5.4pt 0in 5.4pt;width:26.08%;">
  <p style="margin:0in 0in .0001pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Final Maturity Date</font></b></p>
  </td>
  <td width="26%" style="padding:0in 5.4pt 0in 5.4pt;width:26.3%;">
  <p style="margin:0in 0in .0001pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Principal Prepayment<br>
  Dates and Amounts</font></b></p>
  </td>
  <td width="21%" style="padding:0in 5.4pt 0in 5.4pt;width:21.5%;">
  <p style="margin:0in 0in .0001pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Interest Payment<br>
  Period</font></b></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="26%" style="padding:0in 5.4pt 0in 5.4pt;width:26.12%;">
  <p style="margin:0in 0in .0001pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">&nbsp;</font></b></p>
  </td>
  <td width="26%" style="padding:0in 5.4pt 0in 5.4pt;width:26.08%;">
  <p style="margin:0in 0in .0001pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">&nbsp;</font></b></p>
  </td>
  <td width="26%" style="padding:0in 5.4pt 0in 5.4pt;width:26.3%;">
  <p style="margin:0in 0in .0001pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">&nbsp;</font></b></p>
  </td>
  <td width="21%" style="padding:0in 5.4pt 0in 5.4pt;width:21.5%;">
  <p style="margin:0in 0in .0001pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">&nbsp;</font></b></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="26%" valign="top" style="padding:0in 5.4pt 0in 5.4pt;width:26.12%;">
  <p style="margin:0in 0in .0001pt;vertical-align:super;"><font size="1" face="Times New Roman" style="font-size:8.0pt;position:relative;top:-4.0pt;vertical-align:baseline;">*</font></p>
  </td>
  <td width="26%" valign="top" style="padding:0in 5.4pt 0in 5.4pt;width:26.08%;">
  <p style="margin:0in 0in .0001pt;vertical-align:super;"><font size="1" face="Times New Roman" style="font-size:8.0pt;position:relative;top:-4.0pt;vertical-align:baseline;">**</font></p>
  </td>
  <td width="26%" valign="top" style="padding:0in 5.4pt 0in 5.4pt;width:26.3%;">
  <p style="margin:0in 0in .0001pt;vertical-align:super;"><font size="1" face="Times New Roman" style="font-size:8.0pt;position:relative;top:-4.0pt;vertical-align:baseline;">***</font></p>
  </td>
  <td width="21%" valign="top" style="padding:0in 5.4pt 0in 5.4pt;width:21.5%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">[quarterly] [semi-annually]</font></p>
  </td>
 </tr>
</table>

<p style="margin:0in 0in .0001pt;text-align:justify;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">Use
of proceeds of the Notes:</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">Proposed
day for the closing of the purchase and sale of the Notes:</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">The
purchase price of the Notes is to be transferred to:</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<table border="0" cellspacing="0" cellpadding="0" width="94%" style="border-collapse:collapse;width:94.28%;">
 <tr style="page-break-inside:avoid;">
  <td width="31%" colspan="2" style="padding:0in 0in 0in 0in;width:31.56%;">
  <p style="margin:0in 0in .0001pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Name, Address and ABA<br>
  Routing Number of Bank</font></b></p>
  </td>
  <td width="27%" colspan="2" style="padding:0in 0in 0in 0in;width:27.48%;">
  <p style="margin:0in 0in .0001pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Number of Account</font></b></p>
  </td>
  <td width="40%" colspan="2" style="padding:0in 0in 0in 0in;width:40.96%;">
  <p style="margin:0in 0in .0001pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Name &amp; Telephone No. of Bank Officer</font></b></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="31%" colspan="2" valign="top" style="padding:0in 0in 0in 0in;width:31.56%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="27%" colspan="2" valign="top" style="padding:0in 0in 0in 0in;width:27.48%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="40%" colspan="2" valign="top" style="padding:0in 0in 0in 0in;width:40.96%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="15%" valign="top" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0in 0in 0in 0in;width:15.78%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="15%" valign="top" style="padding:0in 0in 0in 0in;width:15.78%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="16%" valign="top" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0in 0in 0in 0in;width:16.8%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="10%" valign="top" style="padding:0in 0in 0in 0in;width:10.68%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="24%" valign="top" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0in 0in 0in 0in;width:24.76%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="16%" valign="top" style="padding:0in 0in 0in 0in;width:16.2%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="31%" colspan="2" valign="top" style="padding:0in 0in 0in 0in;width:31.56%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="27%" colspan="2" valign="top" style="padding:0in 0in 0in 0in;width:27.48%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="40%" colspan="2" valign="top" style="padding:0in 0in 0in 0in;width:40.96%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="31%" colspan="2" valign="top" style="padding:0in 0in 0in 0in;width:31.56%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="27%" colspan="2" valign="top" style="padding:0in 0in 0in 0in;width:27.48%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="24%" valign="top" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0in 0in 0in 0in;width:24.76%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="16%" valign="top" style="padding:0in 0in 0in 0in;width:16.2%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="31%" colspan="2" valign="top" style="padding:0in 0in 0in 0in;width:31.56%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="27%" colspan="2" valign="top" style="padding:0in 0in 0in 0in;width:27.48%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="40%" colspan="2" valign="top" style="padding:0in 0in 0in 0in;width:40.96%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="31%" colspan="2" valign="top" style="padding:0in 0in 0in 0in;width:31.56%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="27%" colspan="2" valign="top" style="padding:0in 0in 0in 0in;width:27.48%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="24%" valign="top" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0in 0in 0in 0in;width:24.76%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="16%" valign="top" style="padding:0in 0in 0in 0in;width:16.2%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr height="0">
  <td width="111" style="border:none;"></td>
  <td width="111" style="border:none;"></td>
  <td width="118" style="border:none;"></td>
  <td width="75" style="border:none;"></td>
  <td width="175" style="border:none;"></td>
  <td width="114" style="border:none;"></td>
 </tr>
</table>

<p style="margin:0in 0in .0001pt;text-align:justify;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">The
Company certifies (a) that the representations and warranties contained in
Section 5 of the Agreement are true on and as of the date of this Request for
Purchase, and (b) that there exists on </font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<div style="margin:0in 0in .0001pt;"><hr size="1" width="25%" noshade color="black" align="left"></div>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:11.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;"><font style="vertical-align:super;"><font size="1" face="Times New Roman" style="font-size:7.0pt;position:relative;top:-3.0pt;vertical-align:baseline;">*</font></font><font size="2" style="font-size:11.0pt;">&#160;Minimum of $10,000,000</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:11.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;"><font style="vertical-align:super;"><font size="1" face="Times New Roman" style="font-size:7.0pt;position:relative;top:-3.0pt;vertical-align:baseline;">*</font></font><font size="1" style="font-size:7.0pt;position:relative;top:-3.0pt;">*</font><font size="2" style="font-size:11.0pt;">&#160;Not more than ten years after original
issuance.</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:11.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;"><font style="vertical-align:super;"><font size="1" face="Times New Roman" style="font-size:7.0pt;position:relative;top:-3.0pt;vertical-align:baseline;">*</font></font><font size="1" style="font-size:7.0pt;position:relative;top:-3.0pt;">**</font><font size="2" style="font-size:11.0pt;">&#160;Remaining Average Life to be not more than 7
years after original issuance.</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Exhibit B-1<a name="PB_1_120753_7608"></a></font></p>

<div style="margin:0in 0in .0001pt;"><hr size="3" width="100%" noshade color="#010101" align="left"></div>

</div>
<!-- SEQ.=1,FOLIO='Exhibit B-1',FILE='C:\JMS\sjayara\10-12718-1\task4204252\12718-1-ki-21.htm',USER='105898',CD='Jul 28 19:10 2010' -->


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<div>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">the
date of this Request for Purchase no Event of Default or Default (both before
and after giving effect to the issuance and purchase of the Notes contemplated
hereby).</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">Dated:&#160; _______________&#160; _____, ________</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<table border="0" cellspacing="0" cellpadding="0" width="100%" style="border-collapse:collapse;width:100.0%;">
 <tr>
  <td width="58%" valign="top" style="padding:0in 0in 0in 0in;width:58.76%;">
  <p style="margin:0in 0in .0001pt;"><b><font size="2" face="Times New Roman" style="font-size:1.0pt;font-weight:bold;">&nbsp;</font></b></p>
  </td>
  <td width="41%" colspan="2" valign="top" style="padding:0in 0in 0in 0in;width:41.24%;">
  <p style="margin:0in 0in .0001pt;"><b><font size="3" face="Times New Roman" style="font-size:12.0pt;font-weight:bold;">LTC PROPERTIES, INC.</font></b></p>
  </td>
 </tr>
 <tr>
  <td width="58%" valign="top" style="padding:0in 0in 0in 0in;width:58.76%;">
  <p style="margin:0in 0in .0001pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">&nbsp;</font></b></p>
  </td>
  <td width="41%" colspan="2" valign="top" style="padding:0in 0in 0in 0in;width:41.24%;">
  <p style="margin:0in 0in .0001pt;"><b><font size="3" face="Times New Roman" style="font-size:12.0pt;font-weight:bold;">&nbsp;</font></b></p>
  </td>
 </tr>
 <tr>
  <td width="58%" valign="top" style="padding:0in 0in 0in 0in;width:58.76%;">
  <p style="margin:0in 0in .0001pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">&nbsp;</font></b></p>
  </td>
  <td width="3%" valign="top" style="padding:0in 0in 0in 0in;width:3.9%;">
  <p style="margin:0in 0in .0001pt;"><b><font size="3" face="Times New Roman" style="font-size:12.0pt;font-weight:bold;">&nbsp;</font></b></p>
  </td>
  <td width="37%" valign="top" style="padding:0in 0in 0in 0in;width:37.34%;">
  <p style="margin:0in 0in .0001pt;"><b><font size="3" face="Times New Roman" style="font-size:12.0pt;font-weight:bold;">&nbsp;</font></b></p>
  </td>
 </tr>
 <tr>
  <td width="58%" valign="top" style="padding:0in 0in 0in 0in;width:58.76%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="3%" valign="top" style="padding:0in 0in 0in 0in;width:3.9%;">
  <p style="margin:0in 0in .0001pt;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">By:</font></p>
  </td>
  <td width="37%" valign="top" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0in 0in 0in 0in;width:37.34%;">
  <p style="margin:0in 0in .0001pt;"><font size="3" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="58%" valign="top" style="padding:0in 0in 0in 0in;width:58.76%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="41%" colspan="2" valign="top" style="padding:0in 0in 0in 0in;width:41.24%;">
  <p style="margin:0in 0in .0001pt;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">Name:</font></p>
  </td>
 </tr>
 <tr>
  <td width="58%" valign="top" style="padding:0in 0in 0in 0in;width:58.76%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="41%" colspan="2" valign="top" style="padding:0in 0in 0in 0in;width:41.24%;">
  <p style="margin:0in 0in .0001pt;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">Title:</font></p>
  </td>
 </tr>
</table>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Exhibit B-2<a name="PB_2_120753_8146"></a></font></p>

<div style="margin:0in 0in .0001pt;"><hr size="3" width="100%" noshade color="#010101" align="left"></div>

</div>
<!-- SEQ.=1,FOLIO='Exhibit B-2',FILE='C:\JMS\sjayara\10-12718-1\task4204252\12718-1-ki-21.htm',USER='105898',CD='Jul 28 19:10 2010' -->


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<div style="font-family:Times New Roman;">

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><b><font size="3" face="Times New Roman" style="font-size:12.0pt;font-weight:bold;">EXHIBIT&nbsp;C</font></b></p>

<p align="right" style="margin:0in 0in .0001pt;text-align:right;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">&nbsp;</font></b></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><b><font size="3" face="Times New Roman" style="font-size:12.0pt;font-weight:bold;">[FORM OF CONFIRMATION OF ACCEPTANCE]</font></b></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">&nbsp;</font></b></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">&nbsp;</font></b></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><b><font size="3" face="Times New Roman" style="font-size:12.0pt;font-weight:bold;">LTC PROPERTIES, INC.</font></b></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">&nbsp;</font></b></p>

<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:.5in;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">Reference is made to the
Note Purchase and Private Shelf Agreement (the <b>&#147;Agreement&#148;</b>),
dated as of July 14, 2010, between LTC Properties, Inc. (the <b>&#147;Company&#148;</b>) and
the other Persons named therein as parties thereto.&#160; All terms used herein that are defined in the
Agreement have the respective meanings specified in the Agreement.</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:.5in;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">PIM or the Prudential
Affiliate which is named below as a Purchaser of Notes hereby confirms the
representations as to such Notes set forth in Section&nbsp;6 of the Agreement,
and agrees to be bound by the provisions of Sections 2B(5) and 2B(7) of the
Agreement.</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:.5in;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">Pursuant to Section 2B(5)
of the Agreement, an Acceptance with respect to the following Accepted Shelf
Notes is hereby confirmed:</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">I.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; Accepted Notes:&#160;
Aggregate principal amount $_____________.</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:.5in;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">(A)&#160;&#160;&#160;&#160;&#160;&#160; (a)&#160;&#160;&#160;&#160;&#160;&#160;&#160; Name
of Purchaser:</font></p>

<p style="margin:0in 0in .0001pt .5in;text-align:justify;text-indent:.5in;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">(b)&#160;&#160;&#160;&#160;&#160;&#160;&#160; Principal amount:</font></p>

<p style="margin:0in 0in .0001pt .5in;text-align:justify;text-indent:.5in;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">(c)&#160;&#160;&#160;&#160;&#160;&#160;&#160; Final maturity date:</font></p>

<p style="margin:0in 0in .0001pt .5in;text-align:justify;text-indent:.5in;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">(d)&#160;&#160;&#160;&#160;&#160;&#160;&#160; Principal prepayment dates and amounts:</font></p>

<p style="font-size:12.0pt;margin:0in 0in .0001pt 1.5in;text-align:justify;text-indent:-.5in;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">(e)</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>Interest
rate:</p>

<p style="font-size:12.0pt;margin:0in 0in .0001pt 1.5in;text-align:justify;text-indent:-.5in;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">(f)</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>Interest
payment period:&#160; [quarterly]
[semi-annually]</p>

<p style="font-size:12.0pt;margin:0in 0in .0001pt 1.5in;text-align:justify;text-indent:-.5in;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">(g)</font><font size="1" face="Times New Roman" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font face="Times New Roman">Payment and
notice instructions:&#160; As set forth on
attached Purchaser Schedule.</font></p>

<p style="margin:0in 0in .0001pt 1.5in;text-align:justify;text-indent:-.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:.5in;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">(B)&#160;&#160;&#160;&#160;&#160;&#160; (a)&#160;&#160;&#160;&#160;&#160;&#160;&#160; Name
of Purchaser:</font></p>

<p style="font-size:12.0pt;margin:0in 0in .0001pt 1.5in;text-align:justify;text-indent:-.5in;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">(b)</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>Principal
amount:</p>

<p style="font-size:12.0pt;margin:0in 0in .0001pt 1.5in;text-align:justify;text-indent:-.5in;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">(c)</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>Final
maturity date:</p>

<p style="font-size:12.0pt;margin:0in 0in .0001pt 1.5in;text-align:justify;text-indent:-.5in;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">(d)</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>Principal
prepayment dates and amounts:</p>

<p style="font-size:12.0pt;margin:0in 0in .0001pt 1.5in;text-align:justify;text-indent:-.5in;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">(e)</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>Interest
rate:</p>

<p style="font-size:12.0pt;margin:0in 0in .0001pt 1.5in;text-align:justify;text-indent:-.5in;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">(f)</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>Interest
payment period:&#160; [quarterly] [semi-annually]</p>

<p style="font-size:12.0pt;margin:0in 0in .0001pt 1.5in;text-align:justify;text-indent:-.5in;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">(g)</font><font size="1" face="Times New Roman" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font face="Times New Roman">Payment and
notice instructions:&#160; As set forth on
attached Purchaser Schedule.</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt .5in;text-align:justify;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">[(C), (D)&nbsp;.&nbsp;.&nbsp;. same information as above.]</font></p>

<p style="margin:0in 0in .0001pt .5in;text-align:justify;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">II.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; Closing Day: _______________&#160; _____, _______</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">Dated:&#160; _______________&#160; _____, ________</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Exhibit E-1<a name="PB_1_120753_7091"></a></font></p>

<div style="margin:0in 0in .0001pt;"><hr size="3" width="100%" noshade color="#010101" align="left"></div>

</div>
<!-- SEQ.=1,FOLIO='Exhibit E-1',FILE='C:\JMS\sjayara\10-12718-1\task4204252\12718-1-ki-21.htm',USER='105898',CD='Jul 28 19:10 2010' -->


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<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt 179.55pt;text-align:justify;"><b><font size="3" face="Times New Roman" style="font-size:12.0pt;font-weight:bold;">LTC PROPERTIES, INC.</font></b></p>

<p style="margin:0in 0in .0001pt 179.55pt;text-align:justify;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt 179.55pt;text-align:justify;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt 179.55pt;text-align:justify;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">By:&#160; _________________________</font></p>

<p style="margin:0in 0in .0001pt 179.55pt;text-align:justify;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">Name:</font></p>

<p style="margin:0in 0in .0001pt 179.55pt;text-align:justify;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">Title:</font></p>

<p style="margin:0in 0in .0001pt 179.55pt;text-align:justify;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt 179.55pt;text-align:justify;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt 2.5in;text-align:justify;"><b><font size="3" face="Times New Roman" style="font-size:12.0pt;font-weight:bold;">PRUDENTIAL
INVESTMENT MANAGEMENT, INC.</font></b></p>

<p style="margin:0in 0in .0001pt 2.5in;text-align:justify;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt 2.5in;text-align:justify;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">By:&#160; _________________________</font></p>

<p style="margin:0in 0in .0001pt 2.5in;text-align:justify;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">Name:&#160; </font></p>

<p style="margin:0in 0in .0001pt 2.5in;text-align:justify;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">Title:&#160;&#160;&#160;&#160; Vice President</font></p>

<p style="margin:0in 0in .0001pt 2.5in;text-align:justify;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt 2.5in;text-align:justify;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt 2.5in;text-align:justify;"><b><font size="3" face="Times New Roman" style="font-size:12.0pt;font-weight:bold;">[PRUDENTIAL
AFFILIATE]</font></b></p>

<p style="margin:0in 0in .0001pt 2.5in;text-align:justify;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt 2.5in;text-align:justify;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">By:&#160; _________________________</font></p>

<p style="margin:0in 0in .0001pt 2.5in;text-align:justify;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">Name:&#160; </font></p>

<p style="margin:0in 0in .0001pt 2.5in;text-align:justify;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">Title:&#160;&#160;&#160;&#160; Vice President</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Exhibit E-2<a name="PB_2_120753_455"></a></font></p>

<div style="margin:0in 0in .0001pt;"><hr size="3" width="100%" noshade color="#010101" align="left"></div>

</div>
<!-- SEQ.=1,FOLIO='Exhibit E-2',FILE='C:\JMS\sjayara\10-12718-1\task4204252\12718-1-ki-21.htm',USER='105898',CD='Jul 28 19:10 2010' -->


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<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><b><font size="3" face="Times New Roman" style="font-size:12.0pt;font-weight:bold;">EXHIBIT E</font></b></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">&nbsp;</font></b></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><b><font size="3" face="Times New Roman" style="font-size:12.0pt;font-weight:bold;">FORM OF BORROWING BASE CERTIFICATE</font></b></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">&nbsp;</font></b></p>

<p style="margin:0in 0in .0001pt;text-align:justify;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">To:&#160; Prudential Investment Management, Inc. and
the holders of Notes issued pursuant to the Note Agreement described below
which are Institutional Investors</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">Pursuant
to the terms of the Note Purchase and Private Shelf Agreement, dated as of July
14, 2010, among us (the &#147;<b>Note Agreement</b>&#148;,
with capitalized terms used herein and not defined herein having the meanings
given to them in the Note Agreement), we submit this Borrowing Base Certificate
to you and certify that the information set forth below and on any attachments
to this Certificate is true, correct and complete as of the date of this
Certificate.</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">1.
Borrowing Base Value $<u>&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </u></font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">2.
Line 1 multiplied by 50% $<u>&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </u></font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">3.
Unsecured Debt (other than the Obligations (as defined in the Credit Agreement
on July 14, 2010)) $<u>&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </u></font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">4.
Borrowing Base (Line 2 minus by Line 3 above) $<u>&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </u></font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">The
Company represents and warrants that the aggregate outstanding principal amount
of the Notes and the Loans and L/C Obligations (as defined in the Credit
Agreement) on the date hereof, including any Loans to be made or Letters of
Credit to be issued on the date hereof, do not exceed the Borrowing Base set
forth above.</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">The
foregoing certifications, together with the computations set forth in Schedule
I hereto are made and delivered this ___ day of 20__.</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;"><b><font size="3" face="Times New Roman" style="font-size:12.0pt;font-weight:bold;">LTC PROPERTIES, INC.</font></b></p>

<p style="margin:0in 0in .0001pt;text-align:justify;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">&nbsp;</font></b></p>

<p style="margin:0in 0in .0001pt;text-align:justify;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">By:<u>&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </u></font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">Name:<u>&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </u></font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">Title:<u>&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </u></font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Exhibit E-1<a name="PB_1_120753_4141"></a></font></p>

<div style="margin:0in 0in .0001pt;"><hr size="3" width="100%" noshade color="#010101" align="left"></div>

</div>
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<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">SCHEDULE I TO BORROWING BASE CERTIFICATE</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Exhibit E-2<a name="PB_2_120753_8627"></a></font></p>

<div style="margin:0in 0in .0001pt;"><hr size="3" width="100%" noshade color="#010101" align="left"></div>

</div>
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<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><b><font size="3" face="Times New Roman" style="font-size:12.0pt;font-weight:bold;">EXHIBIT F</font></b></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">&nbsp;</font></b></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><b><font size="3" face="Times New Roman" style="font-size:12.0pt;font-weight:bold;">[FORM OF JOINDER TO MULTIPARTY
GUARANTY]</font></b></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">&nbsp;</font></b></p>

<p style="font-size:12.0pt;margin:0in 0in .0001pt;text-align:justify;text-indent:.5in;"><b><font size="3" face="Times New Roman" style="font-size:12.0pt;font-weight:bold;">JOINDER NO.</font>&nbsp;[__]</b>, dated as of [________] (this &#147;<b>Joinder</b>&#148;), to the Multiparty Guaranty
set forth as Section 20 (as amended or otherwise modified from time to time,
the &#147;<b>Multiparty Guaranty</b>&#148;) to that certain
Note Purchase and Private Shelf Agreement, dated as of July 14, 2010 (as
amended or otherwise modified from time to time, the &#147;<b>Note
Agreement</b>&#148;), executed by LTC Properties, Inc. (the &#147;<b>Company</b>&#148;), the Guarantors party thereto, and the Purchasers
party thereto.&#160; Capitalized terms used
herein and not otherwise defined herein shall have the meanings assigned to
such terms in the Note Agreement.</p>

<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:.5in;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">1.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; Pursuant to the Multiparty Guaranty,
certain obligations owing by the Company to the holders of Notes under the Note
Agreement and evidenced by the Notes (together with their respective
Transferees, the &#147;<b>Beneficiaries</b>&#148;) are
guaranteed by the Guarantors.</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:.5in;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">2.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; The undersigned (the &#147;<b>Additional Guarantor</b>&#148;) is
executing this Joinder in accordance with the requirements of Section 20.8 of
the Multiparty Guaranty.</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:.5in;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">3.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; The Additional Guarantor by its
signature below becomes a Guarantor under the Multiparty Guaranty and the other
provisions of the Agreement with the same force and effect as if originally
named therein as a Guarantor and the Additional Guarantor hereby
(a)&nbsp;agrees to all the terms and provisions of the Agreement applicable to
it as a Guarantor thereunder, and (b)&nbsp;represents and warrants that the
representations and warranties made by it as a Guarantor set forth in Section 5
of the Note Agreement are true and correct on and as of the date hereof.&#160; Each reference to a Guarantor in the
Multiparty Guaranty and the other provisions of the Agreement shall be deemed
to include the Additional Guarantor.&#160; The
Multiparty Guaranty and the other provisions of the Agreement are hereby
incorporated herein by reference.</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:.5in;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">4.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; The Additional Guarantor represents and
warrants to the Beneficiaries that this Joinder has been duly authorized,
executed and delivered by it and constitutes its legal, valid and binding
obligation, enforceable against it in accordance with its terms.</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:.5in;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">5.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; This Joinder may be executed in one or
more counterparts, each of which shall be deemed an original, but all of which
together shall constitute one and the same instrument.&#160; Delivery of an executed signature page to
this Joinder by facsimile transmission shall be as effective as delivery of a
manually-signed original thereof.</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:.5in;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">6.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; Except as expressly modified hereby,
the Multiparty Guaranty and the other provisions of the Agreement shall remain
in full force and effect.</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:.5in;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">7.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; Any provision of this Joinder that is
prohibited or unenforceable in any jurisdiction shall, as to such jurisdiction,
be ineffective to the extent of such prohibition or unenforceability without
invalidating the remaining provisions thereof, and any such prohibition or
unenforceability in any jurisdiction shall not invalidate or render
unenforceable such provision in any other jurisdiction.</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Exhibit F-1<a name="PB_1_120753_7906"></a></font></p>

<div style="margin:0in 0in .0001pt;"><hr size="3" width="100%" noshade color="#010101" align="left"></div>

</div>
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<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:.5in;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">8.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; All communications and notices
hereunder to the Additional Guarantor shall be given to it at the address set
forth under its signature below.</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="font-size:12.0pt;margin:0in 0in .0001pt;text-align:justify;text-indent:.5in;"><b><font size="3" face="Times New Roman" style="font-size:12.0pt;font-weight:bold;">IN WITNESS WHEREOF</font></b>, the Additional Guarantor has
executed this Joinder by its duly authorized officer as of the day and year
first above written.</p>

<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="font-size:12.0pt;margin:0in 0in .0001pt 3.5in;text-align:justify;"><b><font size="3" face="Times New Roman" style="font-size:12.0pt;font-weight:bold;">[NAME]</font></b><font face="Times New Roman">,
a [________] [corporation]</font></p>

<p style="margin:0in 0in .0001pt 3.5in;text-align:justify;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">&nbsp;</font></b></p>

<p style="margin:0in 0in .0001pt 3.5in;text-align:justify;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">By:<u>&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </u></font></p>

<p style="margin:0in 0in .0001pt 3.5in;text-align:justify;"><font size="1" face="Times New Roman" style="font-size:5.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt 3.5in;text-align:justify;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">Name:<u>&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </u></font></p>

<p style="margin:0in 0in .0001pt 3.5in;text-align:justify;"><font size="1" face="Times New Roman" style="font-size:5.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt 3.5in;text-align:justify;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">Title:<u>&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </u></font></p>

<p style="margin:0in 0in .0001pt 3.5in;text-align:justify;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt 3.5in;text-align:justify;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">Address:&#160;&#160;&#160;&#160; c/o LTC Properties, Inc.</font></p>

<p style="margin:0in 0in .0001pt 4.25in;text-align:justify;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">31365 Oak Crest
Drive</font></p>

<p style="margin:0in 0in .0001pt 4.25in;text-align:justify;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">Suite 200</font></p>

<p style="margin:0in 0in .0001pt 4.25in;text-align:justify;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">Westlake Village,
California 91361</font></p>

<p style="margin:0in 0in .0001pt 4.25in;text-align:justify;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">Attn:&#160; Pamela Shelley-Kessler</font></p>

<p style="margin:0in 0in .0001pt 4.25in;text-align:justify;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">SVP &amp; Chief
Financial Officer</font></p>

<p style="margin:0in 0in .0001pt 4.25in;text-align:justify;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">Facsimile:&#160; (805) 981-8663</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Exhibit F-2<a name="PB_2_120753_3736"></a></font></p>

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</div>
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<p align="right" style="margin:0in 0in .0001pt 5.5in;text-align:right;"><b><font size="2" face="Times New Roman" style="font-size:11.0pt;font-weight:bold;">Exhibit&nbsp;31.1</font></b></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:11.0pt;font-weight:bold;">CERTIFICATION OF THE CHIEF EXECUTIVE OFFICER</font></b></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:11.0pt;font-weight:bold;">PURSUANT TO SECTION&nbsp;302 OF THE SARBANES-OXLEY
ACT OF 2002</font></b></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="1" face="Times New Roman" style="font-size:3.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:11.0pt;">I, Wendy L. Simpson,
certify that:</font></p>

<p style="margin:0in 0in .0001pt 40.5pt;text-indent:-.3in;"><font size="1" face="Times New Roman" style="font-size:3.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt 40.5pt;text-indent:-.3in;"><font size="2" face="Times New Roman" style="font-size:11.0pt;">1.&#160;&#160;&#160;&#160; I have reviewed this quarterly report on Form&nbsp;10-Q
of LTC Properties,&nbsp;Inc.;</font></p>

<p style="margin:0in 0in .0001pt 40.5pt;text-indent:-.3in;"><font size="1" face="Times New Roman" style="font-size:3.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt 40.5pt;text-indent:-.3in;"><font size="2" face="Times New Roman" style="font-size:11.0pt;">2.&#160;&#160;&#160;&#160; Based on my knowledge, this report does not
contain any untrue statement of a material fact or omit to state a material
fact necessary to make the statements made, in light of the circumstances under
which such statements were made, not misleading with respect to the period covered
by this report;</font></p>

<p style="margin:0in 0in .0001pt 40.5pt;text-indent:-.3in;"><font size="1" face="Times New Roman" style="font-size:3.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt 40.5pt;text-indent:-.3in;"><font size="2" face="Times New Roman" style="font-size:11.0pt;">3.&#160;&#160;&#160;&#160; Based on my knowledge, the financial
statements, and other financial information included in this report, fairly
present in all material respects the financial condition, results of operations
and cash flows of the registrant as of, and for, the periods presented in this
report;</font></p>

<p style="margin:0in 0in .0001pt 40.5pt;text-indent:-.3in;"><font size="1" face="Times New Roman" style="font-size:3.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt 40.5pt;text-indent:-.3in;"><font size="2" face="Times New Roman" style="font-size:11.0pt;">4.&#160;&#160;&#160;&#160; The registrant&#146;s other certifying officer(s)&nbsp;and
I are responsible for establishing and maintaining disclosure controls and
procedures (as defined in Exchange Act Rules&nbsp;13a-15(e)&nbsp;and 15d-15(e))
and internal control over financial reporting (as defined in Exchange Act Rules&nbsp;13a-15(f)&nbsp;and
15d-15(f)) for the registrant and have:</font></p>

<p style="margin:0in 0in .0001pt 63.0pt;text-indent:-.25in;"><font size="1" face="Times New Roman" style="font-size:3.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt 63.0pt;text-indent:-.25in;"><font size="2" face="Times New Roman" style="font-size:11.0pt;">a)&#160;&#160; Designed such disclosure controls and
procedures, or caused such disclosure controls and procedures to be designed
under our supervision, to ensure that material information relating to the
registrant, including its consolidated subsidiaries, is made known to us by
others within those entities, particularly during the period in which this
report is being prepared;</font></p>

<p style="margin:0in 0in .0001pt 63.0pt;text-indent:-.25in;"><font size="1" face="Times New Roman" style="font-size:3.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt 63.0pt;text-indent:-.25in;"><font size="2" face="Times New Roman" style="font-size:11.0pt;">b)&#160;&#160; Designed such internal control over financial
reporting, or caused such internal control over financial reporting to be
designed under our supervision, to provide reasonable assurance regarding the
reliability of financial reporting and the preparation of financial statements
for external purposes in accordance with generally accepted accounting
principles;</font></p>

<p style="margin:0in 0in .0001pt 63.0pt;text-indent:-.25in;"><font size="1" face="Times New Roman" style="font-size:3.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt 63.0pt;text-indent:-.25in;"><font size="2" face="Times New Roman" style="font-size:11.0pt;">c)&#160;&#160; Evaluated the effectiveness of the registrant&#146;s
disclosure controls and procedures and presented in this report our conclusions
about the effectiveness of the disclosure controls and procedures, as of the
end of the period covered by this report based on such evaluation; and</font></p>

<p style="margin:0in 0in .0001pt 63.0pt;text-indent:-.25in;"><font size="1" face="Times New Roman" style="font-size:3.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt 63.0pt;text-indent:-.25in;"><font size="2" face="Times New Roman" style="font-size:11.0pt;">d)&#160;&#160; Disclosed in this report any change in the
registrant&#146;s internal control over financial reporting that occurred during the
registrant&#146;s most recent fiscal quarter (the registrant&#146;s fourth fiscal quarter
in the case of an annual report) that has materially affected, or is reasonably
likely to materially affect, the registrant&#146;s internal control over financial
reporting; and</font></p>

<p style="margin:0in 0in .0001pt 63.0pt;text-indent:-.25in;"><font size="1" face="Times New Roman" style="font-size:3.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt 40.5pt;text-indent:-.3in;"><font size="2" face="Times New Roman" style="font-size:11.0pt;">5.&#160;&#160;&#160;&#160; The registrant&#146;s other certifying officer(s)&nbsp;and
I have disclosed, based on our most recent evaluation of internal control over
financial reporting, to the registrant&#146;s auditors and the audit committee of
the registrant&#146;s board of directors (or persons performing the equivalent
functions):</font></p>

<p style="margin:0in 0in .0001pt 63.0pt;text-indent:-.3in;"><font size="1" face="Times New Roman" style="font-size:3.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt 63.0pt;text-indent:-.3in;"><font size="2" face="Times New Roman" style="font-size:11.0pt;">a)&#160;&#160;&#160; All significant deficiencies and material
weaknesses in the design or operation of internal control over financial
reporting which are reasonably likely to adversely affect the registrant&#146;s
ability to record, process, summarize and report financial information; and</font></p>

<p style="margin:0in 0in .0001pt 63.0pt;text-indent:-.3in;"><font size="1" face="Times New Roman" style="font-size:3.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt 63.0pt;text-indent:-.3in;"><font size="2" face="Times New Roman" style="font-size:11.0pt;">b)&#160;&#160;&#160; Any fraud, whether or not material, that
involves management or other employees who have a significant role in the
registrant&#146;s internal control over financial reporting.</font></p>

<p style="margin:0in 0in .0001pt .25in;"><font size="1" face="Times New Roman" style="font-size:8.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt .25in;"><u><font size="2" face="Times New Roman" style="font-size:11.0pt;">/s/ WENDY L.
SIMPSON</font></u></p>

<p style="margin:0in 0in .0001pt .25in;"><font size="2" face="Times New Roman" style="font-size:11.0pt;">Wendy L. Simpson</font></p>

<p style="margin:0in 0in .0001pt .25in;"><font size="2" face="Times New Roman" style="font-size:11.0pt;">Chief Executive Officer
and President</font></p>

<p style="margin:0in 0in .0001pt .25in;"><font size="2" face="Times New Roman" style="font-size:11.0pt;">(Principal Executive
Officer)</font></p>

<p style="margin:0in 0in .0001pt .25in;"><font size="2" face="Times New Roman" style="font-size:11.0pt;">August&nbsp;2, 2010</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

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<p align="right" style="margin:0in 0in .0001pt 1.0in;text-align:right;"><b><font size="2" face="Times New Roman" style="font-size:11.0pt;font-weight:bold;">Exhibit&nbsp;31.2</font></b></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:11.0pt;font-weight:bold;">CERTIFICATION OF THE CHIEF FINANCIAL OFFICER</font></b></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:11.0pt;font-weight:bold;">PURSUANT TO SECTION&nbsp;302 OF THE SARBANES-OXLEY
ACT OF 2002</font></b></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="1" face="Times New Roman" style="font-size:3.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:11.0pt;">I, Pamela
Shelley-Kessler, certify that:</font></p>

<p style="margin:0in 0in .0001pt 40.5pt;text-indent:-.3in;"><font size="1" face="Times New Roman" style="font-size:3.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt 40.5pt;text-indent:-.3in;"><font size="2" face="Times New Roman" style="font-size:11.0pt;">1.</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:11.0pt;">I have reviewed this quarterly report on Form&nbsp;10-Q
of LTC Properties,&nbsp;Inc.;</font></p>

<p style="margin:0in 0in .0001pt 40.5pt;text-indent:-.3in;"><font size="1" face="Times New Roman" style="font-size:3.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt 40.5pt;text-indent:-.3in;"><font size="2" face="Times New Roman" style="font-size:11.0pt;">2.</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:11.0pt;">Based on my knowledge, this report does not contain
any untrue statement of a material fact or omit to state a material fact
necessary to make the statements made, in light of the circumstances under
which such statements were made, not misleading with respect to the period
covered by this report;</font></p>

<p style="margin:0in 0in .0001pt 40.5pt;text-indent:-.3in;"><font size="1" face="Times New Roman" style="font-size:3.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt 40.5pt;text-indent:-.3in;"><font size="2" face="Times New Roman" style="font-size:11.0pt;">3.</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:11.0pt;">Based on my knowledge, the financial statements, and
other financial information included in this report, fairly present in all
material respects the financial condition, results of operations and cash flows
of the registrant as of, and for, the periods presented in this report;</font></p>

<p style="margin:0in 0in .0001pt 40.5pt;text-indent:-.3in;"><font size="1" face="Times New Roman" style="font-size:3.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt 40.5pt;text-indent:-.3in;"><font size="2" face="Times New Roman" style="font-size:11.0pt;">4.</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:11.0pt;">The registrant&#146;s other certifying officer(s)&nbsp;and
I are responsible for establishing and maintaining disclosure controls and
procedures (as defined in Exchange Act Rules&nbsp;13a-15(e)&nbsp;and 15d-15(e))
and internal control over financial reporting (as defined in Exchange Act Rules&nbsp;13a-15(f)&nbsp;and
15d-15(f)) for the registrant and have:</font></p>

<p style="margin:0in 0in .0001pt 63.0pt;text-indent:-.25in;"><font size="1" face="Times New Roman" style="font-size:3.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt 63.0pt;text-indent:-.25in;"><font size="2" face="Times New Roman" style="font-size:11.0pt;">a)</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:11.0pt;">Designed such disclosure controls and procedures, or
caused such disclosure controls and procedures to be designed under our
supervision, to ensure that material information relating to the registrant,
including its consolidated subsidiaries, is made known to us by others within
those entities, particularly during the period in which this report is being
prepared;</font></p>

<p style="margin:0in 0in .0001pt 63.0pt;text-indent:-.25in;"><font size="1" face="Times New Roman" style="font-size:3.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt 63.0pt;text-indent:-.25in;"><font size="2" face="Times New Roman" style="font-size:11.0pt;">b)</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:11.0pt;">Designed such internal control over financial
reporting, or caused such internal control over financial reporting to be
designed under our supervision, to provide reasonable assurance regarding the
reliability of financial reporting and the preparation of financial statements
for external purposes in accordance with generally accepted accounting
principles;</font></p>

<p style="margin:0in 0in .0001pt 63.0pt;text-indent:-.25in;"><font size="1" face="Times New Roman" style="font-size:3.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt 63.0pt;text-indent:-.25in;"><font size="2" face="Times New Roman" style="font-size:11.0pt;">c)</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:11.0pt;">Evaluated the effectiveness of the registrant&#146;s
disclosure controls and procedures and presented in this report our conclusions
about the effectiveness of the disclosure controls and procedures, as of the
end of the period covered by this report based on such evaluation; and</font></p>

<p style="margin:0in 0in .0001pt 63.0pt;text-indent:-.25in;"><font size="1" face="Times New Roman" style="font-size:3.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt 63.0pt;text-indent:-.25in;"><font size="2" face="Times New Roman" style="font-size:11.0pt;">d)</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:11.0pt;">Disclosed in this report any change in the registrant&#146;s
internal control over financial reporting that occurred during the registrant&#146;s
most recent fiscal quarter (the registrant&#146;s fourth fiscal quarter in the case
of an annual report) that has materially affected, or is reasonably likely to
materially affect, the registrant&#146;s internal control over financial reporting;
and</font></p>

<p style="margin:0in 0in .0001pt 63.0pt;text-indent:-.25in;"><font size="1" face="Times New Roman" style="font-size:3.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt 40.5pt;text-indent:-.3in;"><font size="2" face="Times New Roman" style="font-size:11.0pt;">5.</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:11.0pt;">The registrant&#146;s other certifying officer(s)&nbsp;and
I have disclosed, based on our most recent evaluation of internal control over
financial reporting, to the registrant&#146;s auditors and the audit committee of
the registrant&#146;s board of directors (or persons performing the equivalent
functions):</font></p>

<p style="margin:0in 0in .0001pt 63.0pt;text-indent:-.3in;"><font size="1" face="Times New Roman" style="font-size:3.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt 63.0pt;text-indent:-.3in;"><font size="2" face="Times New Roman" style="font-size:11.0pt;">a)</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:11.0pt;">All significant deficiencies and material weaknesses
in the design or operation of internal control over financial reporting which
are reasonably likely to adversely affect the registrant&#146;s ability to record,
process, summarize and report financial information; and</font></p>

<p style="margin:0in 0in .0001pt 63.0pt;text-indent:-.3in;"><font size="1" face="Times New Roman" style="font-size:3.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt 63.0pt;text-indent:-.3in;"><font size="2" face="Times New Roman" style="font-size:11.0pt;">b)</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:11.0pt;">Any fraud, whether or not material, that involves
management or other employees who have a significant role in the registrant&#146;s
internal control over financial reporting.</font></p>

<p style="margin:0in 0in .0001pt 63.0pt;text-indent:-.3in;"><font size="1" face="Times New Roman" style="font-size:8.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt .25in;"><u><font size="2" face="Times New Roman" style="font-size:11.0pt;">/s/ PAMELA
SHELLEY-KESSLER</font></u></p>

<p style="margin:0in 0in .0001pt .25in;"><font size="2" face="Times New Roman" style="font-size:11.0pt;">Pamela Shelley-Kessler</font></p>

<p style="margin:0in 0in .0001pt .25in;"><font size="2" face="Times New Roman" style="font-size:11.0pt;">Senior Vice President,
Chief Financial Officer</font></p>

<p style="margin:0in 0in .0001pt .25in;text-indent:6.0pt;"><font size="2" face="Times New Roman" style="font-size:11.0pt;">and
Corporate Secretary</font></p>

<p style="margin:0in 0in .0001pt .25in;"><font size="2" face="Times New Roman" style="font-size:11.0pt;">(Principal Financial and
Accounting Officer)</font></p>

<p style="margin:0in 0in .0001pt .25in;"><font size="2" face="Times New Roman" style="font-size:11.0pt;">August&nbsp;2, 2010</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="1" face="Times New Roman" style="font-size:3.0pt;">&nbsp;</font></p>

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<p align="right" style="margin:0in 0in .0001pt 5.5in;text-align:right;"><b><font size="2" face="Times New Roman" style="font-size:11.0pt;font-weight:bold;">Exhibit&nbsp;32</font></b></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:11.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:11.0pt;font-weight:bold;">CERTIFICATIONS PURSUANT TO 18 U.S.C. SECTION&nbsp;1350,
AS ADOPTED PURSUANT TO<br>
SECTION&nbsp;906 OF THE SARBANES-OXLEY ACT OF 2002</font></b></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:11.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:11.0pt;">Pursuant to 18 U.S.C.
1350, as adopted pursuant to Section&nbsp;906 of the Sarbanes-Oxley Act of
2002, each of the undersigned officers of LTC Properties,&nbsp;Inc. (the &#147;Company&#148;)
hereby certifies with respect to the Quarterly Report on Form&nbsp;10-Q of the
Company for the quarter ended June&nbsp;30, 2010 as filed with the Securities
and Exchange Commission (the&nbsp;&#147;Report&#148;) that to her knowledge:</font></p>

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:11.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt .85in;text-indent:-.35in;"><font size="2" face="Times New Roman" style="font-size:11.0pt;">( 1 )</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:11.0pt;">The
Report fully complies with the requirements of section 13(a)&nbsp;or 15(d)&nbsp;of
the Securities and Exchange Act of 1934; and</font></p>

<p style="margin:0in 0in .0001pt .85in;text-indent:-.35in;"><font size="2" face="Times New Roman" style="font-size:11.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt .85in;text-indent:-.35in;"><font size="2" face="Times New Roman" style="font-size:11.0pt;">( 2 )</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:11.0pt;">The
information contained in the Report fairly presents, in all material respects,
the financial condition and result of operations of the Company.</font></p>

<p style="margin:0in 0in .0001pt .35in;text-indent:-.35in;"><font size="2" face="Times New Roman" style="font-size:11.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt .35in;text-indent:-.35in;"><font size="2" face="Times New Roman" style="font-size:11.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;"><u><font size="2" face="Times New Roman" style="font-size:11.0pt;">/s/ WENDY L. SIMPSON</font></u></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:11.0pt;">Wendy L. Simpson</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:11.0pt;">Chief Executive Officer
and President</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:11.0pt;">August&nbsp;2, 2010</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:11.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:11.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;"><u><font size="2" face="Times New Roman" style="font-size:11.0pt;">/s/ PAMELA
SHELLEY-KESSLER</font></u></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:11.0pt;">Pamela Shelley-Kessler</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:11.0pt;">Senior Vice President,
Chief Financial Officer</font></p>

<p style="margin:0in 0in .0001pt;text-indent:6.0pt;"><font size="2" face="Times New Roman" style="font-size:11.0pt;">and Corporate Secretary</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:11.0pt;">August&nbsp;2, 2010</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:11.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:11.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;"><i><font size="2" face="Times New Roman" style="font-size:11.0pt;font-style:italic;">The foregoing certification is
being furnished (but not filed) solely pursuant to 18 U.S.C. Section&nbsp;1350,
as adopted pursuant to Section&nbsp;906 of the Sarbanes-Oxley Act of 2002.</font></i></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

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