Highland Farms, Inc. and Subsidiary - Page 12

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               prorated on a monthly basis.                                           
               Twenty (20%) percent during each of the next four (4)                  
               years, prorated on a monthly basis.                                    
          If a resident terminated the rental contract or died within the             
          first 5 years, petitioner refunded to the resident or the                   
          resident's estate the portion of the entry fee deemed unearned.             
          However, petitioner was entitled to offset against this refund              
          any amounts due under the terms of the agreement, such as health-           
          care center charges.                                                        
          The Lodge                                                                   
               The lodge was a 38-unit residence for those requiring hotel-           
          type services.  It had two-floor elevator service.  The lodge               
          offered four types of accommodations all of which had a private             
          bath:                                                                       
               (1) Single room--residents of these units were required to             
          eat in the main dining room three meals per day.                            
               (2) Studio apartment with combination sink, two-burner range           
          and refrigerator--residents were required to eat in the main                
          dining room at least two meals per day.                                     
               (3) Expanded studio apartment with larger kitchen and                  
          approximately 50 percent more living space than a regular                   
          studio--residents were required to eat in the main dining room at           
          least two meals per day.                                                    
               (4) One bedroom apartment with fully equipped kitchen, full            
          bath, living/dining room, and bedroom with walk-in closet--                 
          residents were required to eat one meal per day in the main                 
          dining room.                                                                




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