Estate of Lea K. Hillgren, Deceased, Mark Hillgren, Executor - Page 18

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               4.  Management of the LKHP Properties                                  
               MSL Properties, Inc. (MSL), is a property management company           
          in Orange, California, with the same business address as                    
          Hillgren.  Debra Gates (Gates) is the president and registered              
          agent of MSL.  Gates and decedent met in 1984 and became friends.           
          Decedent appointed Gates as an alternate under decedent’s durable           
          power of attorney for health care.                                          
               Since MSL was incorporated in 1986, MSL continuously managed           
          properties that were owned by Hillgren family entities.  MSL had            
          approximately 12 clients in addition to LKHP, all of which were             
          related entities of the Hillgren family.  The related entities              
          included, among others, the amended trust, Carl C. Hillgren,                
          Hillgren, Hillgren’s children, the Mark Hillgren Children’s                 
          Trust, and Seaward.  The duties that were performed by MSL                  
          included property management, general office functions, and                 
          bookkeeping.  Gates worked with decedent in managing the                    
          properties, and decedent would set parameters for Gates’s                   
               Prior to the formation of LKHP, MSL managed the seven LKHP             
          properties.  In 1997, MSL continued to manage the LKHP properties           
          after the formation of LKHP.  Gates understood that LKHP was to             
          continue using the Wells Fargo bank account, used previously by             
          Sea Shell and the amended trust, after the partnership commenced.           

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Last modified: May 25, 2011