Loans and Related Real Property in California

Sale of loan and related real properties, incudes undivided beneficial interests in each of the following three loans (the "Castaic Loans") secured respectively by contiguous parcels of real property located in Los Angeles County, California.

1. The largest of the three Castaic Loans (the "Tapia Ranch Loan"), after several modifications, had a principal balance of $22,000,000.00. The Tapia Ranch Loan was secured by a first deed of trust recorded October 8, 2004 as Document No. 2004-259922 of the Official Records of Los Angeles County, California, and amended of record from time to time (the "Tapia Ranch Trust Deed"). The ARC bankruptcy estate owned an interest in the Tapia Ranch Loan based on a principal investment of $314,000.00. A foreclosure has been completed under the Tapia Ranch Trust Deed, and record title to the real property collateral (the "Tapia Ranch Property") has been transferred by Trustee's Deed Upon Sale to DACA-Castaic, LLC.
2. The second largest of the three Castaic Loans (the "Castaic II Loan") had a principal balance of $5,600,000.00. The Castaic II Loan was secured by a first deed of trust recorded July 26, 2005 as Document No. 2005-1761534 of the Official Records of Los Angeles County, California, and amended of record to, among other things, correct the legal description (the "Castaic II Trust Deed"). The ARC bankruptcy estate owned an interest in the Castaic II Loan based on a principal investment of $425,000.00. A foreclosure has been completed under the Castaic II Trust Deed, and record title to the real property collateral (the "Castaic II Property") has been transferred by Trustee's Deed Upon Sale to DACA-Castaic, LLC. The Tapia Ranch Property and the Castaic II Property are referred to together in this Agreement as the "Castaic Properties."
3. The smallest of the three Castaic Loans (the "Castaic III Loan"), after a single modification of record, was $4,675,000.00. The Castaic III Loan was secured by a first deed of trust recorded October 12, 2005 as Document No. 2005-2452902 of the Official Records of Los Angeles County, California, as amended of record. The ARC bankruptcy estate owns an interest in the Castaic III Loan based on a principal investment of $75,000.00. The Castaic III trust deed has not been foreclosed.

Sale assets:

1. The Castaic Properties and the Castaic III Loan, including without implied limitation: (i) all interest in the Castaic Loans which could be revived or reinstated in the event that the foreclosures are vacated or rescinded; (ii) all rights under any guaranty(ies) of the Castaic Loans; (iii) all other claims and rights arising from or relating to the Castaic Loans or the Castaic Properties.
2. All rights of the ARC bankruptcy estate to collect servicing advances and fees from any future recovery on account of the Castaic Loans, and any all other claims and rights to payment relating to the Castaic Properties or the Castaic Loans.