Estate of Lea K. Hillgren, Deceased, Mark Hillgren, Executor - Page 10

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          and Guaranty Agreement on the Puccio loan, extending the                    
          collection of the principal of the loan until January 1, 2001.              
          Hillgren also placed his assets as collateral on the Puccio loan.           
               Hillgren assisted decedent in obtaining a forbearance and              
          extension on other loans as well, including the Huettner loan.              
          On May 1, 1994, the terms of the Huettner loan were modified,               
          reducing the amount of the loan to $1,481,567.95.  To secure the            
          payment of the modified loan, Sea Shell and Seaward executed a              
          second in priority deed on the “Arizona Property” and a deed of             
          trust on the North Main property, in favor of Huettner.  (It is             
          unclear from the exhibit whether the “Arizona Property” referred            
          to is the same as the University property or is another property            
          owned by Nordica Properties (Nordica), a California general                 
          partnership, also owned by decedent and Hillgren, which owned               
          properties in Phoenix, Arizona.)  On April 15, 1994, Hillgren and           
          Carl C. Hillgren modified the Safeco loan by becoming guarantors            
          of the loan, reducing the interest rate and extending the                   
          maturity date.                                                              
               3.  Refinancing of the University Property                             
               On May 20, 1999, the University property was refinanced by             
          LKHP when a new first mortgage in the amount of $2.5 million was            
          obtained from Baltimore Life Insurance Co.  As a result of the              
          refinancing, the net cash proceeds totaled $369,329.  Hillgren              
          did not receive a distribution of loan proceeds during the                  

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