Highland Farms, Inc. and Subsidiary - Page 7

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          the cluster home owners:                                                    
               (1)  Each cluster home owner was required to abide by the              
          rules and regulations of Highland Farms.                                    
               (2)  Each cluster home owner was prohibited from carrying on           
          any noxious or offensive activity in the cluster home or on the             
          grounds of Highland Farms.                                                  
               (3)  At least one occupant of the cluster home had to be 55            
          years of age or older; no occupant could be under 18 years of               
          age; and no more than three persons could reside in the cluster             
          home.                                                                       
               (4)  No cluster home owner could lease or assign any rights            
          in the cluster home and the ground surrounding the cluster home             
          without petitioner's express permission.                                    
               (5)  No cluster home owner could convey or attempt to convey           
          by deed or otherwise any incident of ownership in and to the                
          cluster home and the grounds surrounding the cluster home without           
          petitioner's express written permission.                                    
               (6)  The cluster home owner could not make any structural              
          changes or additions to the cluster home without the written                
          consent of petitioner.                                                      
               With the exception of the destruction provision, if the                
          owner of a cluster home desired to sell the home or died within             
          the first 7 years of residence, petitioner was obligated to                 
          repurchase the cluster home for a certain percentage of the                 
          original purchase price according to a schedule in the purchase             
          agreement.  If this occurred within the first 12 months from the            
          date of purchase, the repurchase price was the original price               



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Last modified: May 25, 2011