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<p style="margin: 0pt"></p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; background-color: white"><b>Description
of Business</b></p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"><i><u>Description of Business</u></i></p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">Shepherd’s Finance, LLC and subsidiaries
(the “Company”, “we” or “our”) is a finance company that intends to focus most of our future
efforts on commercial lending to residential homebuilders, to finance construction of single family properties. The single family
residential construction loans will be extended to residential homebuilders and, as such, are commercial loans. The Company also
intends to lend and has loaned money to residential homebuilders to develop undeveloped land into residential building lots known
as acquisition and development loans, which are also considered commercial loans.</p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">Our plans include expanding our lending
capacity and funding our business operations by extending notes to the general public, which will be unsecured subordinated debt.
Eventually, the Company intends to repay the debt from affiliates with secured debt from a bank or through other liquidity.</p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"><i> </i></p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"><i><u>Basis of Presentation</u></i></p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">The unaudited interim condensed consolidated
financial statements, in the opinion of management, reflect all adjustments necessary for a fair presentation of the consolidated
financial position, results of operations and cash flows for the periods presented. Such adjustments are of a normal, recurring
nature. The results of operations for any interim period are not necessarily indicative of results expected for the fiscal year
ending December 31, 2012. While certain information and disclosures normally included in financial statements prepared in accordance
with accounting principles generally accepted in the United States of America (“GAAP”) have been condensed or omitted
pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”), management believes that the
disclosures herein are adequate to make the condensed consolidated information presented not misleading. These unaudited interim
condensed consolidated financial statements should be read in conjunction with the year end 2011 consolidated financial statements
and notes thereto, included in the Company’s prospectus dated October 4, 2012. The accounting policies followed by the Company
are set forth in Note 2 - <i>Summary of Significant Accounting Policies</i> of the Notes to those 2011 statements.</p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; background-color: white"><b>Liquidity
and Capital Resources</b></p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; background-color: white"> </p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; background-color: white">The Company
has a limited operating history with our current business model, and our operations are subject to certain risks and uncertainties,
particularly related to the concentration of our current operations to a single customer and geographic region, as well as the
evolution of the current economic environment and its impact on the United States real estate and housing markets. Both the concentration
of risk and the recessionary economic environment could directly or indirectly impact losses related to certain transactions and access
to and cost of adequate financing.</p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; background-color: white"> </p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; background-color: white">The Company’s
anticipated primary source of liquidity going forward is interest income and/or principal repayments from our loans, as well as
funds borrowed from creditors, all of whom are currently members and affiliates.  Therefore, the Company’s ability to
fund its operations is dependent upon our sole customer’s ability to continue paying interest and principal and our ability
to obtain additional financing, as needed, from the members, general public or other entities. </p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; background-color: white"> </p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; background-color: white">We generated
a profit from continuing operations of $100 and $0 for the nine months ended September 30, 2012 and 2011, respectively. Cash used
in continuing operations during these periods was approximately $9 and $956, respectively. At September 30, 2012 we had cash on
hand of approximately $41 and our outstanding debt totaled $2,515, which was unsecured or payable to related parties.</p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; background-color: white"> </p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; background-color: white">Our current
plan is to expand the commercial lending program by using current liquidity and available funding including our offering of notes.
We have anticipated the costs of this expansion and the costs of the offering, and we anticipate generating, through normal operations,
the cash flows necessary to meet our operating, investing and financing requirements. As noted above, the two most significant
factors driving our current plans are the continued payments of principal and interest by our sole homebuilder customer and the
amount of funds received from the public offering of notes. If actual results differ materially from our current plan or if expected
financing is not available, we believe we have the ability to discontinue the offering to reduce costs; we also intend and believe
we have the ability to obtain funding and generate net worth through additional debt or equity infusions of cash. There can be
no assurance, however, that we will be able to implement our strategies or obtain additional financing under favorable terms, if
at all.</p>
<p style="margin: 0pt"></p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"><b>Segment Reporting</b></p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">We report all ongoing operations in one
segment, commercial lending.</p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"><b>Use of Estimates</b></p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">Timely preparation of financial statements
in accordance with the rules and regulations of the SEC require management to make estimates that affect the reported amounts of
assets and liabilities at the date of the financial statements, as well as the reported amounts of income and expenses during the
reporting periods. Actual results could differ from those estimates.</p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"><b>Loans Receivable</b></p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"><b> </b></p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">Loans are stated at the amount of unpaid
principal, net of any allowances for loan losses, and adjusted for the net amount of direct costs and nonrefundable loan fees associated
with lending. The net amount of nonrefundable loan origination fees and direct costs associated with the lending process, including
commitment fees, is deferred and accreted to interest income over the lives of the loans using a method that approximates the interest
method. Substantially all of the Company’s loans are secured by real estate, currently all in a suburb of Pittsburgh, Pennsylvania.
Accordingly, the ultimate collectability of a substantial portion of these loans is susceptible to changes in market conditions
in that area.</p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">Past due loans are loans contractually
past due 30 days or more as to principal or interest payments. A loan is classified as nonaccrual, and the accrual of interest
on such loan is discontinued, when the contractual payment of principal or interest becomes 90 days past due. In addition, a loan
may be placed on nonaccrual at any other time management has serious doubts about further collectability of principal or interest
according to the contractual terms, even though the loan is currently performing. A loan may remain on accrual status if it is
in the process of collection or well-secured (i.e. the loan has sufficient collateral value). Loans are restored to accrual status
when the obligation is brought current or has performed in accordance with the contractual terms for a reasonable period of time
and the ultimate collectability of the total contractual principal and interest is no longer in doubt.</p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">A loan is considered impaired when, based
on current information and events, it is probable that the Company will be unable to collect the scheduled payments of principal
or interest when due according to the contractual terms of the loan agreement. Impaired loans, or portions thereof, are charged
off when deemed uncollectible. Once a loan is 90 days past due, management begins a workout plan with the borrower or commences
its foreclosure process on the collateral.</p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"><b>Allowance for Loan Losses</b></p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"><b> </b></p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">The allowance for loan losses, when determined
to be necessary, is maintained at a level believed adequate by management to absorb probable losses inherent in the loan portfolio.</p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">For loans to one borrower with committed
balances less than 10% of our total committed balances on all loans extended to all customers, we analyze for impairment all loans
which are more than 60 days past due at the end of a quarter.  For loans to one borrower with committed balances equal to
or greater than 10% of our total committed balances on all loans extended to all customers, we analyze all loans for impairment. 
The analysis of loans, if required, develops a collateral value to be compared to the principal amount of the loan.  If the
value determined is less than the principal amount due (less any builder deposit), then the difference is included in the loan
loss.  As values change, estimated loan losses may be provided for more or less than the previous period, and some loans do
not need a loss provision based on payment history.  For homes which are partially complete, we appraise on an as-is and completed
basis, and use the one that more closely aligns with our planned method of disposal for the property.</p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">All loans that are individually evaluated
for impairment have an appraisal within the last 13 months.  There also is a broker’s opinion of value (“BOV”)
prepared, if the appraisal is more than six months old.  The lower of any BOV prepared in the last six months, or appraisal
in the last 13 months will be used, unless we determine a BOV to be invalid based on the comparable sales used.  If we determine
a BOV to be invalid, we use the appraised value.  <font style="color: black">Appraised values are adjusted down for costs
associated with asset disposal.</font></p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0"><b>Recent Accounting Pronouncements</b></p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"><b> </b></p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">In December 2011, the FASB issued ASU
2011-11, <i>Disclosures about Offsetting Assets and Liabilities</i> which creates new disclosure requirements about the nature
of an entity’s rights of setoff and related arrangements associated with its financial instruments and derivative instruments.
The disclosures will be limited to financial instruments and derivatives subject to enforceable master netting arrangements or
similar agreements and excludes loans unless they are netted in the statement of financial condition. The amendments will affect
all entities that have financial instruments and derivatives that are either offset in the balance sheet or subject to an enforceable
master netting arrangement or similar agreement regardless of whether they are offset in the balance sheet. The ASU will require
entities to disclose, separately for financial assets and liabilities, including derivatives, the gross amounts of recognized financial
assets and liabilities; the amounts offset under current U.S. GAAP; the net amounts presented in the balance sheet; the amounts
subject to an enforceable master netting arrangement or similar agreement that were not included in the offset amount above, and
the reconciling amount. The disclosure requirements are effective for annual and interim reporting periods beginning on or after
January 1, 2013, with retrospective application required. The Company is evaluating the impact of this amendment.</p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">In May 2011, the FASB issued ASU No.
2011-04, Fair Value Measurement (Topic 820): <i>Amendments to Achieve Common Fair Value Measurement and Disclosure Requirements
in U.S. GAAP and IFRS</i>, to provide a consistent definition of fair value and ensure that the fair value measurement and disclosure
requirements are similar between U.S. GAAP and IFRS. ASU 2011-04 changes certain fair value measurement principles and enhances
the disclosure requirements particularly for Level 3 fair value measurements. <font style="color: black">The most significant change
will require entities, for their recurring Level 3 fair value measurements, to disclose quantitative information about unobservable
inputs used, a description of the valuation processes used by the entity, and a qualitative discussion about the sensitivity of
the measurements. New disclosures are required about the use of a nonfinancial asset measured or disclosed at fair value if its
use differs from its highest and best use. In addition, entities must report the level in the fair value hierarchy of assets and
liabilities not recorded at fair value but where fair value is disclosed. The amendment was effective for annual and interim reporting
periods which began after December 15, 2011. The adoption of this guidance had no effect on the amounts presented in the Company’s
consolidated financial statements or notes to the consolidated financial statements, as the Company currently has no assets measured
at fair value on a recurring or nonrecurring basis. See Note 3.</font></p>
<p style="margin: 0pt"></p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"><b>4. Financing Receivables </b></p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">Financing receivables are comprised of
the following:</p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<table cellspacing="0" cellpadding="0" style="font: 8pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<tr style="vertical-align: bottom">
<td style="border-bottom: black 1pt solid; line-height: 115%; font-weight: bold; text-align: justify"> </td>
<td style="border-bottom: black 1pt solid; line-height: 115%; font-weight: bold"> </td>
<td colspan="2" style="border-bottom: black 1pt solid; line-height: 115%; font-weight: bold; text-align: center">September 30, <br /> 2012</td>
<td style="border-bottom: black 1pt solid; line-height: 115%; font-weight: bold"> </td>
<td style="border-bottom: black 1pt solid; line-height: 115%; font-weight: bold"> </td>
<td colspan="2" style="border-bottom: black 1pt solid; line-height: 115%; font-weight: bold; text-align: center">December 31,<br /> 2011</td>
<td style="border-bottom: black 1pt solid; line-height: 115%; font-weight: bold"> </td></tr>
<tr style="vertical-align: bottom">
<td style="line-height: 115%; font-weight: bold; text-align: justify"> </td>
<td style="line-height: 115%; font-weight: bold"> </td>
<td style="line-height: 115%; font-weight: bold"> </td>
<td style="line-height: 115%; font-weight: bold; text-align: right"> </td>
<td style="line-height: 115%; font-weight: bold"> </td>
<td style="line-height: 115%; font-weight: bold"> </td>
<td style="line-height: 115%; font-weight: bold"> </td>
<td style="line-height: 115%; font-weight: bold; text-align: right"> </td>
<td style="line-height: 115%; font-weight: bold"> </td></tr>
<tr style="vertical-align: bottom; background-color: #EEEEEE">
<td style="width: 66%; line-height: 115%">Commercial loans, net</td>
<td style="width: 2%; line-height: 115%"> </td>
<td style="width: 1%; line-height: 115%">$</td>
<td style="width: 13%; line-height: 115%; text-align: right">4,242</td>
<td style="width: 1%; line-height: 115%"> </td>
<td style="width: 2%; line-height: 115%"> </td>
<td style="width: 1%; line-height: 115%">$</td>
<td style="width: 13%; line-height: 115%; text-align: right">4,580</td>
<td style="width: 1%; line-height: 115%"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="border-bottom: black 1pt solid; line-height: 115%">Less:  Allowance for loan losses</td>
<td style="border-bottom: black 1pt solid; line-height: 115%"> </td>
<td style="border-bottom: black 1pt solid; line-height: 115%"> </td>
<td style="border-bottom: black 1pt solid; line-height: 115%; text-align: right">–</td>
<td style="border-bottom: black 1pt solid; line-height: 115%"> </td>
<td style="border-bottom: black 1pt solid; line-height: 115%"> </td>
<td style="border-bottom: black 1pt solid; line-height: 115%"> </td>
<td style="border-bottom: black 1pt solid; line-height: 115%; text-align: right">–</td>
<td style="border-bottom: black 1pt solid; line-height: 115%"> </td></tr>
<tr style="vertical-align: bottom; background-color: #EEEEEE">
<td style="line-height: 115%; text-align: justify"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%; text-align: right"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%; text-align: right"> </td>
<td style="line-height: 115%"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="border-bottom: black 2.25pt double; line-height: 115%; text-align: justify"> </td>
<td style="border-bottom: black 2.25pt double; line-height: 115%"> </td>
<td style="border-bottom: black 2.25pt double; line-height: 115%">$</td>
<td style="border-bottom: black 2.25pt double; line-height: 115%; text-align: right">4,242</td>
<td style="border-bottom: black 2.25pt double; line-height: 115%"> </td>
<td style="border-bottom: black 2.25pt double; line-height: 115%"> </td>
<td style="border-bottom: black 2.25pt double; line-height: 115%">$</td>
<td style="border-bottom: black 2.25pt double; line-height: 115%; text-align: right">4,580</td>
<td style="border-bottom: black 2.25pt double; line-height: 115%"> </td></tr>
</table>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">Roll forward of commercial loans:</p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<table cellspacing="0" cellpadding="0" style="font: 8pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<tr style="vertical-align: bottom">
<td style="border-bottom: black 1pt solid; line-height: 115%; font-weight: bold; text-align: justify"> </td>
<td style="border-bottom: black 1pt solid; line-height: 115%; font-weight: bold"> </td>
<td colspan="2" style="border-bottom: black 1pt solid; line-height: 115%; font-weight: bold; text-align: center">Nine Months<br /> Ended <br /> September 30,<br /> 2012</td>
<td style="border-bottom: black 1pt solid; line-height: 115%; font-weight: bold"> </td>
<td style="border-bottom: black 1pt solid; line-height: 115%; font-weight: bold"> </td>
<td colspan="2" style="border-bottom: black 1pt solid; line-height: 115%; font-weight: bold; text-align: center">Year <br /> Ended<br /> December 31, <br /> 2011</td>
<td style="border-bottom: black 1pt solid; line-height: 115%; font-weight: bold"> </td>
<td style="border-bottom: black 1pt solid; line-height: 115%; font-weight: bold"> </td>
<td colspan="2" style="border-bottom: black 1pt solid; line-height: 115%; font-weight: bold; text-align: center">Nine Months<br /> Ended <br /> September 30, <br /> 2011</td>
<td style="border-bottom: black 1pt solid; line-height: 115%; font-weight: bold"> </td></tr>
<tr style="vertical-align: bottom">
<td style="line-height: 115%; font-weight: bold; text-align: justify"> </td>
<td style="line-height: 115%; font-weight: bold"> </td>
<td style="line-height: 115%; font-weight: bold"> </td>
<td style="line-height: 115%; font-weight: bold; text-align: right"> </td>
<td style="line-height: 115%; font-weight: bold"> </td>
<td style="line-height: 115%; font-weight: bold"> </td>
<td style="line-height: 115%; font-weight: bold"> </td>
<td style="line-height: 115%; font-weight: bold; text-align: right"> </td>
<td style="line-height: 115%; font-weight: bold"> </td>
<td style="line-height: 115%; font-weight: bold"> </td>
<td style="line-height: 115%; font-weight: bold"> </td>
<td style="line-height: 115%; font-weight: bold; text-align: right"> </td>
<td style="line-height: 115%; font-weight: bold"> </td></tr>
<tr style="vertical-align: bottom; background-color: #EEEEEE">
<td style="width: 55%; line-height: 115%">Beginning balance</td>
<td style="width: 2%; line-height: 115%"> </td>
<td style="width: 1%; line-height: 115%">$</td>
<td style="width: 11%; line-height: 115%; text-align: right">4,580</td>
<td style="width: 1%; line-height: 115%"> </td>
<td style="width: 2%; line-height: 115%"> </td>
<td style="width: 1%; line-height: 115%">$</td>
<td style="width: 11%; line-height: 115%; text-align: right">–</td>
<td style="width: 1%; line-height: 115%"> </td>
<td style="width: 2%; line-height: 115%"> </td>
<td style="width: 1%; line-height: 115%">$</td>
<td style="width: 11%; line-height: 115%; text-align: right">–</td>
<td style="width: 1%; line-height: 115%"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="padding-left: 11pt; line-height: 115%">Additions</td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%; text-align: right">300</td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%; text-align: right">4,580</td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%; text-align: right">–</td>
<td style="line-height: 115%"> </td></tr>
<tr style="vertical-align: bottom; background-color: #EEEEEE">
<td style="padding-left: 11pt; line-height: 115%">Payoffs/Sales</td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%; text-align: right">(804</td>
<td style="line-height: 115%">)</td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%; text-align: right">–</td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%; text-align: right">–</td>
<td style="line-height: 115%"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="border-bottom: black 1pt solid; padding-left: 11pt; line-height: 115%">Earned loan fee</td>
<td style="border-bottom: black 1pt solid; line-height: 115%"> </td>
<td style="border-bottom: black 1pt solid; line-height: 115%"> </td>
<td style="border-bottom: black 1pt solid; line-height: 115%; text-align: right">166</td>
<td style="border-bottom: black 1pt solid; line-height: 115%"> </td>
<td style="border-bottom: black 1pt solid; line-height: 115%"> </td>
<td style="border-bottom: black 1pt solid; line-height: 115%"> </td>
<td style="border-bottom: black 1pt solid; line-height: 115%; text-align: right">–</td>
<td style="border-bottom: black 1pt solid; line-height: 115%"> </td>
<td style="border-bottom: black 1pt solid; line-height: 115%"> </td>
<td style="border-bottom: black 1pt solid; line-height: 115%"> </td>
<td style="border-bottom: black 1pt solid; line-height: 115%; text-align: right">–</td>
<td style="border-bottom: black 1pt solid; line-height: 115%"> </td></tr>
<tr style="vertical-align: bottom; background-color: #EEEEEE">
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%; text-align: right"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%; text-align: right"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%; text-align: right"> </td>
<td style="line-height: 115%"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="border-bottom: black 2.25pt double; line-height: 115%">Ending balance</td>
<td style="border-bottom: black 2.25pt double; line-height: 115%"> </td>
<td style="border-bottom: black 2.25pt double; line-height: 115%">$</td>
<td style="border-bottom: black 2.25pt double; line-height: 115%; text-align: right">4,242</td>
<td style="border-bottom: black 2.25pt double; line-height: 115%"> </td>
<td style="border-bottom: black 2.25pt double; line-height: 115%"> </td>
<td style="border-bottom: black 2.25pt double; line-height: 115%">$</td>
<td style="border-bottom: black 2.25pt double; line-height: 115%; text-align: right">4,580</td>
<td style="border-bottom: black 2.25pt double; line-height: 115%"> </td>
<td style="border-bottom: black 2.25pt double; line-height: 115%"> </td>
<td style="border-bottom: black 2.25pt double; line-height: 115%">$</td>
<td style="border-bottom: black 2.25pt double; line-height: 115%; text-align: right">–</td>
<td style="border-bottom: black 2.25pt double; line-height: 115%"> </td></tr>
</table>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"><b>Commercial Loans </b></p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"><b> </b></p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">On December 30, 2011, pursuant to a credit
agreement by and between us, Benjamin Marcus Homes, LLC (“BMH”), Investor’s Mark Acquisitions, LLC (“IMA”)
and Mark L. Hoskins (“Hoskins”) (collectively, the “Hoskins Group”) (the “Credit Agreement”),
we originated two new loan assets, one to BMH as borrower (the “BMH Loan”) and one to IMA as borrower (the “New
IMA Loan”). Pursuant to the Credit Agreement and simultaneously with the origination of the BMH Loan and the New IMA Loan,
we also assumed the position of lender on an existing loan to IMA (the “Existing IMA Loan”) and assumed the position
of borrower on another existing loan in which IMA serves as the lender (the “SF Loan”). When we assumed the position
of the lender on the Existing IMA Loan, we purchased a loan which was originated by the borrower’s former lender, and assumed
that lender’s position in the loan and maintained the recorded collateral position in the loan. The borrower’s former
lender and the seller of the BMH property were the same party, 84 FINANCIAL, L.P., an affiliate of 84 Lumber Company. The BMH Loan,
the New IMA Loan and the Existing IMA Loan are all cross-defaulted and cross-collateralized with each other. Further, IMA and Hoskins
serve as guarantors of the BMH Loan, and BMH and Hoskins serve as guarantors of the New IMA Loan and the Existing IMA Loan. As
such, we are currently reliant on a single developer and homebuilder for our revenues and investment capital. The terms and conditions
of these loans are set forth in further detail below:<font style="color: black"> </font></p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0"> </p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0"> A detail of the financing receivables at September 30,
2012:</p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<table cellspacing="0" cellpadding="0" style="font: 8pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<tr style="vertical-align: bottom">
<td style="border-bottom: black 1pt solid; line-height: 115%; font-weight: bold; text-align: center">Item</td>
<td style="border-bottom: black 1pt solid; line-height: 115%; font-weight: bold"> </td>
<td colspan="2" style="border-bottom: black 1pt solid; line-height: 115%; font-weight: bold; text-align: center">Term</td>
<td style="border-bottom: black 1pt solid; line-height: 115%; font-weight: bold"> </td>
<td style="border-bottom: black 1pt solid; line-height: 115%; font-weight: bold"> </td>
<td style="border-bottom: black 1pt solid; line-height: 115%; font-weight: bold; text-align: center">Interest Rate</td>
<td style="border-bottom: black 1pt solid; line-height: 115%; font-weight: bold"> </td>
<td colspan="2" style="border-bottom: black 1pt solid; line-height: 115%; font-weight: bold; text-align: center">Funded to<br /> borrower</td>
<td style="border-bottom: black 1pt solid; line-height: 115%; font-weight: bold"> </td>
<td style="border-bottom: black 1pt solid; line-height: 115%; font-weight: bold"> </td>
<td colspan="2" style="border-bottom: black 1pt solid; line-height: 115%; font-weight: bold; text-align: center">Estimated <br /> collateral<br /> values</td>
<td style="border-bottom: black 1pt solid; line-height: 115%; font-weight: bold"> </td></tr>
<tr style="vertical-align: bottom">
<td style="line-height: 115%; text-align: center"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%; text-align: right"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="padding-left: 5.4pt; line-height: 115%; text-align: center"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%; text-align: right"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%; text-align: right"> </td>
<td style="line-height: 115%"> </td></tr>
<tr style="vertical-align: bottom; background-color: #EEEEEE">
<td style="line-height: 115%; font-style: italic">BMH Loan</td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%; text-align: center">Demand*</td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="padding-left: 5.4pt; line-height: 115%; text-align: center">COF +2%  (7% Floor)</td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%; text-align: right"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%; text-align: right"> </td>
<td style="line-height: 115%"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="width: 32%; padding-left: 11pt; line-height: 115%">10 Lots</td>
<td style="width: 2%; line-height: 115%"> </td>
<td style="width: 1%; line-height: 115%"> </td>
<td style="width: 12%; line-height: 115%; text-align: right"> </td>
<td style="width: 1%; line-height: 115%"> </td>
<td style="width: 2%; line-height: 115%"> </td>
<td style="width: 20%; padding-left: 5.4pt; line-height: 115%; text-align: right"> </td>
<td style="width: 2%; line-height: 115%"> </td>
<td style="width: 1%; line-height: 115%">$</td>
<td style="width: 11%; line-height: 115%; text-align: right">1,822</td>
<td style="width: 1%; line-height: 115%"> </td>
<td style="width: 2%; line-height: 115%"> </td>
<td style="width: 1%; line-height: 115%">$</td>
<td style="width: 11%; line-height: 115%; text-align: right">1,330</td>
<td style="width: 1%; line-height: 115%"> </td></tr>
<tr style="vertical-align: bottom; background-color: #EEEEEE">
<td style="padding-left: 11pt; line-height: 115%">Land for phases 3, 4 and 5</td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%; text-align: right"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="padding-left: 5.4pt; line-height: 115%; text-align: right"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%; text-align: right">–</td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%; text-align: right">1,760</td>
<td style="line-height: 115%"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="padding-left: 11pt; line-height: 115%">Interest Escrow</td>
<td style="line-height: 115%; font-weight: bold"> </td>
<td style="line-height: 115%; font-weight: bold"> </td>
<td style="line-height: 115%; font-weight: bold; text-align: right"> </td>
<td style="line-height: 115%; font-weight: bold"> </td>
<td style="line-height: 115%; font-weight: bold"> </td>
<td style="padding-left: 5.4pt; line-height: 115%; font-weight: bold; text-align: right"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%; text-align: right">450</td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%; text-align: right">324</td>
<td style="line-height: 115%"> </td></tr>
<tr style="vertical-align: bottom; background-color: #EEEEEE">
<td style="border-bottom: black 1pt solid; padding-left: 11pt; line-height: 115%">Loan Fee</td>
<td style="border-bottom: black 1pt solid; line-height: 115%"> </td>
<td style="border-bottom: black 1pt solid; line-height: 115%"> </td>
<td style="border-bottom: black 1pt solid; line-height: 115%; text-align: right"> </td>
<td style="border-bottom: black 1pt solid; line-height: 115%"> </td>
<td style="border-bottom: black 1pt solid; line-height: 115%"> </td>
<td style="border-bottom: black 1pt solid; padding-left: 5.4pt; line-height: 115%; text-align: right"> </td>
<td style="border-bottom: black 1pt solid; line-height: 115%"> </td>
<td style="border-bottom: black 1pt solid; line-height: 115%"> </td>
<td style="border-bottom: black 1pt solid; line-height: 115%; text-align: right">750</td>
<td style="border-bottom: black 1pt solid; line-height: 115%"> </td>
<td style="border-bottom: black 1pt solid; line-height: 115%"> </td>
<td style="border-bottom: black 1pt solid; line-height: 115%"> </td>
<td style="border-bottom: black 1pt solid; line-height: 115%; text-align: right">–</td>
<td style="border-bottom: black 1pt solid; line-height: 115%"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%; text-align: right"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="padding-left: 5.4pt; line-height: 115%; text-align: right"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%; text-align: right"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%; text-align: right"> </td>
<td style="line-height: 115%"> </td></tr>
<tr style="vertical-align: bottom; background-color: #EEEEEE">
<td style="border-bottom: black 1pt solid; line-height: 115%; font-weight: bold">Total BMH Loan</td>
<td style="border-bottom: black 1pt solid; line-height: 115%; font-weight: bold"> </td>
<td style="border-bottom: black 1pt solid; line-height: 115%; font-weight: bold"> </td>
<td style="border-bottom: black 1pt solid; line-height: 115%; font-weight: bold; text-align: right"> </td>
<td style="border-bottom: black 1pt solid; line-height: 115%; font-weight: bold"> </td>
<td style="border-bottom: black 1pt solid; line-height: 115%; font-weight: bold"> </td>
<td style="border-bottom: black 1pt solid; padding-left: 5.4pt; line-height: 115%; font-weight: bold; text-align: right"> </td>
<td style="border-bottom: black 1pt solid; line-height: 115%; font-weight: bold"> </td>
<td style="border-bottom: black 1pt solid; line-height: 115%; font-weight: bold"> </td>
<td style="border-bottom: black 1pt solid; line-height: 115%; font-weight: bold; text-align: right">3,022</td>
<td style="border-bottom: black 1pt solid; line-height: 115%; font-weight: bold"> </td>
<td style="border-bottom: black 1pt solid; line-height: 115%; font-weight: bold"> </td>
<td style="border-bottom: black 1pt solid; line-height: 115%; font-weight: bold"> </td>
<td style="border-bottom: black 1pt solid; line-height: 115%; font-weight: bold; text-align: right">3,414</td>
<td style="border-bottom: black 1pt solid; line-height: 115%; font-weight: bold"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="line-height: 115%; font-style: italic"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%; text-align: right"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="padding-left: 5.4pt; line-height: 115%; text-align: right"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%; text-align: right"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%; text-align: right"> </td>
<td style="line-height: 115%"> </td></tr>
<tr style="vertical-align: bottom; background-color: #EEEEEE">
<td style="line-height: 115%; font-style: italic">IMA Loans</td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%; text-align: right"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="padding-left: 5.4pt; line-height: 115%; text-align: right"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%; text-align: right"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%; text-align: right"> </td>
<td style="line-height: 115%"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="padding-left: 11pt; line-height: 115%">New IMA Loan (loan fee)</td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%; text-align: center">Demand*</td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="padding-left: 5.4pt; line-height: 115%; text-align: center">COF +2%  (7% Floor)</td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%; text-align: right">250</td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%; text-align: right">–</td>
<td style="line-height: 115%"> </td></tr>
<tr style="vertical-align: bottom; background-color: #EEEEEE">
<td style="padding-left: 11pt; line-height: 115%">New IMA Loan (advances)</td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%; text-align: center">Demand*</td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="padding-left: 5.4pt; line-height: 115%; text-align: center">COF +2%  (7% Floor)</td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%; text-align: right">41</td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%; text-align: right">–</td>
<td style="line-height: 115%"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="border-bottom: black 1pt solid; padding-left: 11pt; line-height: 115%">Existing IMA Loan</td>
<td style="border-bottom: black 1pt solid; line-height: 115%"> </td>
<td style="border-bottom: black 1pt solid; line-height: 115%"> </td>
<td style="border-bottom: black 1pt solid; line-height: 115%; text-align: center"> Demand**</td>
<td style="border-bottom: black 1pt solid; line-height: 115%"> </td>
<td style="border-bottom: black 1pt solid; line-height: 115%"> </td>
<td style="border-bottom: black 1pt solid; padding-left: 5.4pt; line-height: 115%; text-align: center">7%</td>
<td style="border-bottom: black 1pt solid; line-height: 115%"> </td>
<td style="border-bottom: black 1pt solid; line-height: 115%"> </td>
<td style="border-bottom: black 1pt solid; line-height: 115%; text-align: right">1,687</td>
<td style="border-bottom: black 1pt solid; line-height: 115%"> </td>
<td style="border-bottom: black 1pt solid; line-height: 115%"> </td>
<td style="border-bottom: black 1pt solid; line-height: 115%"> </td>
<td style="border-bottom: black 1pt solid; line-height: 115%; text-align: right">1,910</td>
<td style="border-bottom: black 1pt solid; line-height: 115%"> </td></tr>
<tr style="vertical-align: bottom; background-color: #EEEEEE">
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%; text-align: right"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="padding-left: 5.4pt; line-height: 115%; text-align: center"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%; text-align: right"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%; text-align: right"> </td>
<td style="line-height: 115%"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="border-bottom: black 1pt solid; line-height: 115%; font-weight: bold">Total IMA Loans</td>
<td style="border-bottom: black 1pt solid; line-height: 115%"> </td>
<td style="border-bottom: black 1pt solid; line-height: 115%"> </td>
<td style="border-bottom: black 1pt solid; line-height: 115%; text-align: right"> </td>
<td style="border-bottom: black 1pt solid; line-height: 115%"> </td>
<td style="border-bottom: black 1pt solid; line-height: 115%"> </td>
<td style="border-bottom: black 1pt solid; padding-left: 5.4pt; line-height: 115%; text-align: right"> </td>
<td style="border-bottom: black 1pt solid; line-height: 115%; font-weight: bold"> </td>
<td style="border-bottom: black 1pt solid; line-height: 115%; font-weight: bold"> </td>
<td style="border-bottom: black 1pt solid; line-height: 115%; font-weight: bold; text-align: right">1,978</td>
<td style="border-bottom: black 1pt solid; line-height: 115%; font-weight: bold"> </td>
<td style="border-bottom: black 1pt solid; line-height: 115%; font-weight: bold"> </td>
<td style="border-bottom: black 1pt solid; line-height: 115%; font-weight: bold"> </td>
<td style="border-bottom: black 1pt solid; line-height: 115%; font-weight: bold; text-align: right">1,910</td>
<td style="border-bottom: black 1pt solid; line-height: 115%; font-weight: bold"> </td></tr>
<tr style="vertical-align: bottom; background-color: #EEEEEE">
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%; text-align: right"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="padding-left: 5.4pt; line-height: 115%; text-align: right"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%; text-align: right"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%; text-align: right"> </td>
<td style="line-height: 115%"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="line-height: 115%">Unearned loan fee</td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%; text-align: right"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="padding-left: 5.4pt; line-height: 115%; text-align: right"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%; text-align: right">(758</td>
<td style="line-height: 115%">)</td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%; text-align: right">-</td>
<td style="line-height: 115%"> </td></tr>
<tr style="vertical-align: bottom; background-color: #EEEEEE">
<td style="border-bottom: black 1pt solid; line-height: 115%">SF Loan</td>
<td style="border-bottom: black 1pt solid; line-height: 115%"> </td>
<td style="border-bottom: black 1pt solid; line-height: 115%"> </td>
<td style="border-bottom: black 1pt solid; line-height: 115%; text-align: right"> </td>
<td style="border-bottom: black 1pt solid; line-height: 115%"> </td>
<td style="border-bottom: black 1pt solid; line-height: 115%"> </td>
<td style="border-bottom: black 1pt solid; padding-left: 5.4pt; line-height: 115%; text-align: right"> </td>
<td style="border-bottom: black 1pt solid; line-height: 115%"> </td>
<td style="border-bottom: black 1pt solid; line-height: 115%"> </td>
<td style="border-bottom: black 1pt solid; line-height: 115%; text-align: right">-</td>
<td style="border-bottom: black 1pt solid"> </td>
<td style="border-bottom: black 1pt solid; line-height: 115%"> </td>
<td style="border-bottom: black 1pt solid; line-height: 115%"> </td>
<td style="border-bottom: black 1pt solid; line-height: 115%; text-align: right">1,500</td>
<td style="border-bottom: black 1pt solid; line-height: 115%"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%; text-align: right"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="padding-left: 5.4pt; line-height: 115%; text-align: right"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%; text-align: right"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%; text-align: right"> </td>
<td style="line-height: 115%"> </td></tr>
<tr style="vertical-align: bottom; background-color: #EEEEEE">
<td style="border-bottom: black 1pt solid; line-height: 115%; font-weight: bold">Total</td>
<td style="border-bottom: black 1pt solid; line-height: 115%; font-weight: bold"> </td>
<td style="border-bottom: black 1pt solid; line-height: 115%; font-weight: bold"> </td>
<td style="border-bottom: black 1pt solid; line-height: 115%; font-weight: bold; text-align: right"> </td>
<td style="border-bottom: black 1pt solid; line-height: 115%; font-weight: bold"> </td>
<td style="border-bottom: black 1pt solid; line-height: 115%; font-weight: bold"> </td>
<td style="border-bottom: black 1pt solid; padding-left: 5.4pt; line-height: 115%; font-weight: bold; text-align: right"> </td>
<td style="border-bottom: black 1pt solid; line-height: 115%; font-weight: bold"> </td>
<td style="border-bottom: black 1pt solid; line-height: 115%; font-weight: bold">$</td>
<td style="border-bottom: black 1pt solid; line-height: 115%; font-weight: bold; text-align: right">4,242</td>
<td style="border-bottom: black 1pt solid; line-height: 115%; font-weight: bold"> </td>
<td style="border-bottom: black 1pt solid; line-height: 115%; font-weight: bold"> </td>
<td style="border-bottom: black 1pt solid; line-height: 115%; font-weight: bold">$</td>
<td style="border-bottom: black 1pt solid; line-height: 115%; font-weight: bold; text-align: right">6,824</td>
<td style="border-bottom: black 1pt solid; line-height: 115%; font-weight: bold"> </td></tr>
</table>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0"> </p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0"> </p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0">A detail of the financing receivables at December 31, 2011:</p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0"> </p>
<table cellspacing="0" cellpadding="0" style="font: 8pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<tr style="vertical-align: bottom">
<td style="border-bottom: black 1pt solid; line-height: 115%; font-weight: bold; text-align: center">Item</td>
<td style="border-bottom: black 1pt solid; line-height: 115%; font-weight: bold"> </td>
<td colspan="2" style="border-bottom: black 1pt solid; line-height: 115%; font-weight: bold; text-align: center">Term</td>
<td style="border-bottom: black 1pt solid; line-height: 115%; font-weight: bold"> </td>
<td style="border-bottom: black 1pt solid; line-height: 115%; font-weight: bold"> </td>
<td style="border-bottom: black 1pt solid; line-height: 115%; font-weight: bold; text-align: center">Interest Rate</td>
<td style="border-bottom: black 1pt solid; line-height: 115%; font-weight: bold"> </td>
<td colspan="2" style="border-bottom: black 1pt solid; line-height: 115%; font-weight: bold; text-align: center">Funded to<br /> borrower</td>
<td style="border-bottom: black 1pt solid; line-height: 115%; font-weight: bold"> </td>
<td style="border-bottom: black 1pt solid; line-height: 115%; font-weight: bold"> </td>
<td colspan="2" style="border-bottom: black 1pt solid; line-height: 115%; font-weight: bold; text-align: center">Estimated <br /> collateral<br /> values</td>
<td style="border-bottom: black 1pt solid; line-height: 115%; font-weight: bold"> </td></tr>
<tr style="vertical-align: bottom">
<td style="line-height: 115%; text-align: center"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%; text-align: right"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="padding-left: 5.4pt; line-height: 115%; text-align: center"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%; text-align: right"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%; text-align: right"> </td>
<td style="line-height: 115%"> </td></tr>
<tr style="vertical-align: bottom; background-color: #EEEEEE">
<td style="line-height: 115%; font-style: italic">BMH Loan</td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%; text-align: center">Demand*</td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="padding-left: 5.4pt; line-height: 115%; text-align: center">COF +2%  (7% Floor)</td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%; text-align: right"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%; text-align: right"> </td>
<td style="line-height: 115%"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="width: 32%; line-height: 115%">   16 Lots</td>
<td style="width: 2%; line-height: 115%"> </td>
<td style="width: 1%; line-height: 115%"> </td>
<td style="width: 12%; line-height: 115%; text-align: right"> </td>
<td style="width: 1%; line-height: 115%"> </td>
<td style="width: 2%; line-height: 115%"> </td>
<td style="width: 20%; padding-left: 5.4pt; line-height: 115%; text-align: right"> </td>
<td style="width: 2%; line-height: 115%"> </td>
<td style="width: 1%; line-height: 115%">$</td>
<td style="width: 11%; line-height: 115%; text-align: right">2,368</td>
<td style="width: 1%; line-height: 115%"> </td>
<td style="width: 2%; line-height: 115%"> </td>
<td style="width: 1%; line-height: 115%">$</td>
<td style="width: 11%; line-height: 115%; text-align: right">1,930</td>
<td style="width: 1%; line-height: 115%"> </td></tr>
<tr style="vertical-align: bottom; background-color: #EEEEEE">
<td style="line-height: 115%">   Land for phases 3, 4 and 5</td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%; text-align: right"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="padding-left: 5.4pt; line-height: 115%; text-align: right"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%; text-align: right">–</td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%; text-align: right">1,760</td>
<td style="line-height: 115%"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="line-height: 115%">   Interest Escrow</td>
<td style="line-height: 115%; font-weight: bold"> </td>
<td style="line-height: 115%; font-weight: bold"> </td>
<td style="line-height: 115%; font-weight: bold; text-align: right"> </td>
<td style="line-height: 115%; font-weight: bold"> </td>
<td style="line-height: 115%; font-weight: bold"> </td>
<td style="padding-left: 5.4pt; line-height: 115%; font-weight: bold; text-align: right"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%; text-align: right">450</td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%; text-align: right">450</td>
<td style="line-height: 115%"> </td></tr>
<tr style="vertical-align: bottom; background-color: #EEEEEE">
<td style="border-bottom: black 1pt solid; line-height: 115%">   Loan Fee</td>
<td style="border-bottom: black 1pt solid; line-height: 115%"> </td>
<td style="border-bottom: black 1pt solid; line-height: 115%"> </td>
<td style="border-bottom: black 1pt solid; line-height: 115%; text-align: right"> </td>
<td style="border-bottom: black 1pt solid; line-height: 115%"> </td>
<td style="border-bottom: black 1pt solid; line-height: 115%"> </td>
<td style="border-bottom: black 1pt solid; padding-left: 5.4pt; line-height: 115%; text-align: right"> </td>
<td style="border-bottom: black 1pt solid; line-height: 115%"> </td>
<td style="border-bottom: black 1pt solid; line-height: 115%"> </td>
<td style="border-bottom: black 1pt solid; line-height: 115%; text-align: right">750</td>
<td style="border-bottom: black 1pt solid; line-height: 115%"> </td>
<td style="border-bottom: black 1pt solid; line-height: 115%"> </td>
<td style="border-bottom: black 1pt solid; line-height: 115%"> </td>
<td style="border-bottom: black 1pt solid; line-height: 115%; text-align: right">–</td>
<td style="border-bottom: black 1pt solid; line-height: 115%"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%; text-align: right"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="padding-left: 5.4pt; line-height: 115%; text-align: right"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%; text-align: right"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%; text-align: right"> </td>
<td style="line-height: 115%"> </td></tr>
<tr style="vertical-align: bottom; background-color: #EEEEEE">
<td style="border-bottom: black 1pt solid; line-height: 115%; font-weight: bold">Total BMH Loan</td>
<td style="border-bottom: black 1pt solid; line-height: 115%; font-weight: bold"> </td>
<td style="border-bottom: black 1pt solid; line-height: 115%; font-weight: bold"> </td>
<td style="border-bottom: black 1pt solid; line-height: 115%; font-weight: bold; text-align: right"> </td>
<td style="border-bottom: black 1pt solid; line-height: 115%; font-weight: bold"> </td>
<td style="border-bottom: black 1pt solid; line-height: 115%; font-weight: bold"> </td>
<td style="border-bottom: black 1pt solid; padding-left: 5.4pt; line-height: 115%; font-weight: bold; text-align: right"> </td>
<td style="border-bottom: black 1pt solid; line-height: 115%; font-weight: bold"> </td>
<td style="border-bottom: black 1pt solid; line-height: 115%; font-weight: bold"> </td>
<td style="border-bottom: black 1pt solid; line-height: 115%; font-weight: bold; text-align: right">3,568</td>
<td style="border-bottom: black 1pt solid; line-height: 115%; font-weight: bold"> </td>
<td style="border-bottom: black 1pt solid; line-height: 115%; font-weight: bold"> </td>
<td style="border-bottom: black 1pt solid; line-height: 115%; font-weight: bold"> </td>
<td style="border-bottom: black 1pt solid; line-height: 115%; font-weight: bold; text-align: right">4,140</td>
<td style="border-bottom: black 1pt solid; line-height: 115%; font-weight: bold"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="line-height: 115%; font-style: italic"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%; text-align: right"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="padding-left: 5.4pt; line-height: 115%; text-align: right"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%; text-align: right"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%; text-align: right"> </td>
<td style="line-height: 115%"> </td></tr>
<tr style="vertical-align: bottom; background-color: #EEEEEE">
<td style="line-height: 115%; font-style: italic">IMA Loans</td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%; text-align: right"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="padding-left: 5.4pt; line-height: 115%; text-align: right"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%; text-align: right"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%; text-align: right"> </td>
<td style="line-height: 115%"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="line-height: 115%">   New IMA Loan (loan fee)</td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%; text-align: center">Demand*</td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="padding-left: 5.4pt; line-height: 115%; text-align: center">COF +2%  (7% Floor)</td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%; text-align: right">250</td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%; text-align: right">–</td>
<td style="line-height: 115%"> </td></tr>
<tr style="vertical-align:
bottom; background-color: #EEEEEE">
<td style="border-bottom: black 1pt solid; line-height: 115%">   Existing IMA Loan</td>
<td style="border-bottom: black 1pt solid; line-height: 115%"> </td>
<td style="border-bottom: black 1pt solid; line-height: 115%"> </td>
<td style="border-bottom: black 1pt solid; line-height: 115%; text-align: center"> Demand**</td>
<td style="border-bottom: black 1pt solid; line-height: 115%"> </td>
<td style="border-bottom: black 1pt solid; line-height: 115%"> </td>
<td style="border-bottom: black 1pt solid; padding-left: 5.4pt; line-height: 115%; text-align: center">7%</td>
<td style="border-bottom: black 1pt solid; line-height: 115%"> </td>
<td style="border-bottom: black 1pt solid; line-height: 115%"> </td>
<td style="border-bottom: black 1pt solid; line-height: 115%; text-align: right">1,686</td>
<td style="border-bottom: black 1pt solid; line-height: 115%"> </td>
<td style="border-bottom: black 1pt solid; line-height: 115%"> </td>
<td style="border-bottom: black 1pt solid; line-height: 115%"> </td>
<td style="border-bottom: black 1pt solid; line-height: 115%; text-align: right">1,910</td>
<td style="border-bottom: black 1pt solid; line-height: 115%"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%; text-align: right"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="padding-left: 5.4pt; line-height: 115%; text-align: center"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%; text-align: right"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%; text-align: right"> </td>
<td style="line-height: 115%"> </td></tr>
<tr style="vertical-align: bottom; background-color: #EEEEEE">
<td style="border-bottom: black 1pt solid; line-height: 115%; font-weight: bold">Total IMA Loans</td>
<td style="border-bottom: black 1pt solid; line-height: 115%"> </td>
<td style="border-bottom: black 1pt solid; line-height: 115%"> </td>
<td style="border-bottom: black 1pt solid; line-height: 115%; text-align: right"> </td>
<td style="border-bottom: black 1pt solid; line-height: 115%"> </td>
<td style="border-bottom: black 1pt solid; line-height: 115%"> </td>
<td style="border-bottom: black 1pt solid; padding-left: 5.4pt; line-height: 115%; text-align: right"> </td>
<td style="border-bottom: black 1pt solid; line-height: 115%; font-weight: bold"> </td>
<td style="border-bottom: black 1pt solid; line-height: 115%; font-weight: bold"> </td>
<td style="border-bottom: black 1pt solid; line-height: 115%; font-weight: bold; text-align: right">1,936</td>
<td style="border-bottom: black 1pt solid; line-height: 115%; font-weight: bold"> </td>
<td style="border-bottom: black 1pt solid; line-height: 115%; font-weight: bold"> </td>
<td style="border-bottom: black 1pt solid; line-height: 115%; font-weight: bold"> </td>
<td style="border-bottom: black 1pt solid; line-height: 115%; font-weight: bold; text-align: right">1,910</td>
<td style="border-bottom: black 1pt solid; line-height: 115%; font-weight: bold"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%; text-align: right"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="padding-left: 5.4pt; line-height: 115%; text-align: right"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%; text-align: right"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%; text-align: right"> </td>
<td style="line-height: 115%"> </td></tr>
<tr style="vertical-align: bottom; background-color: #EEEEEE">
<td style="border-bottom: black 1pt solid; line-height: 115%">Unearned loan fee <br /> SF Loan</td>
<td style="border-bottom: black 1pt solid; line-height: 115%"> </td>
<td style="border-bottom: black 1pt solid; line-height: 115%"> </td>
<td style="border-bottom: black 1pt solid; line-height: 115%; text-align: right"> </td>
<td style="border-bottom: black 1pt solid; line-height: 115%"> </td>
<td style="border-bottom: black 1pt solid; line-height: 115%"> </td>
<td style="border-bottom: black 1pt solid; padding-left: 5.4pt; line-height: 115%; text-align: right"> </td>
<td style="border-bottom: black 1pt solid; line-height: 115%"> </td>
<td style="border-bottom: black 1pt solid; line-height: 115%"> </td>
<td style="border-bottom: black 1pt solid; line-height: 115%; text-align: right">(924</td>
<td style="border-bottom: black 1pt solid; line-height: 115%">)-</td>
<td style="border-bottom: black 1pt solid; line-height: 115%"> </td>
<td style="border-bottom: black 1pt solid; line-height: 115%"> </td>
<td style="border-bottom: black 1pt solid; line-height: 115%; text-align: right">-1,500</td>
<td style="border-bottom: black 1pt solid; line-height: 115%"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%; text-align: right"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="padding-left: 5.4pt; line-height: 115%; text-align: right"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%; text-align: right"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%; text-align: right"> </td>
<td style="line-height: 115%"> </td></tr>
<tr style="vertical-align: bottom; background-color: #EEEEEE">
<td style="border-bottom: black 1pt solid; line-height: 115%; font-weight: bold">Total</td>
<td style="border-bottom: black 1pt solid; line-height: 115%; font-weight: bold"> </td>
<td style="border-bottom: black 1pt solid; line-height: 115%; font-weight: bold"> </td>
<td style="border-bottom: black 1pt solid; line-height: 115%; font-weight: bold; text-align: right"> </td>
<td style="border-bottom: black 1pt solid; line-height: 115%; font-weight: bold"> </td>
<td style="border-bottom: black 1pt solid; line-height: 115%; font-weight: bold"> </td>
<td style="border-bottom: black 1pt solid; padding-left: 5.4pt; line-height: 115%; font-weight: bold; text-align: right"> </td>
<td style="border-bottom: black 1pt solid; line-height: 115%; font-weight: bold"> </td>
<td style="border-bottom: black 1pt solid; line-height: 115%; font-weight: bold">$</td>
<td style="border-bottom: black 1pt solid; line-height: 115%; font-weight: bold; text-align: right">4,580</td>
<td style="border-bottom: black 1pt solid; line-height: 115%; font-weight: bold"> </td>
<td style="border-bottom: black 1pt solid; line-height: 115%; font-weight: bold"> </td>
<td style="border-bottom: black 1pt solid; line-height: 115%; font-weight: bold">$</td>
<td style="border-bottom: black 1pt solid; line-height: 115%; font-weight: bold; text-align: right">7,550</td>
<td style="border-bottom: black 1pt solid; line-height: 115%; font-weight: bold"> </td></tr>
</table>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">* These are the stated terms; however,
in practice, principal will be repaid upon the sale of each developed lot.</p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">** These are the stated terms; however,
in practice, principal will be repaid upon the sale of each developed lot after the BMH loan and the New IMA loan are satisfied.</p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">The loans are collectively cross-collateralized
and, therefore, treated as one loan for the purpose of calculating the effective interest rate and for available remedies upon
an instance of default. As lots are released, a specific release price is repaid by the borrower, with 10% of that amount being
used to fund the Interest Escrow. The customer will make cash interest payments only when the Interest Escrow is fully depleted.</p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">Of the $1,000 loan fee from the origination
of our demand loans, $76 was used to offset legal expenses related to the creation of the loans. In accordance with ASC 310-20,
<i>Nonrefundable Fees and Other Costs</i>, the remaining $924 loan fee is recognized over the expected life of the loans using
the straight-line method. The effective annual rate on the loans at September 30, 2012 and December 31, 2011 was 11.18% and 11.81%,
respectively.</p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">The Company has a credit agreement with
the customer which includes a maximum exposure on all three loans, which is $5,100 at September 30, 2012, was $5,800 at December
31, 2011 and will reduce to $4,900 in November 1, 2012, unless modified by both parties.</p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"><b> </b></p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"><b>Credit Quality Information</b></p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">Certain of the following tables present
credit-related information at the “class” level in accordance with ASC 310-10-50, <i>Disclosures about the Credit Quality
of Finance Receivables and the Allowance for Credit Losses</i>. A class is generally a disaggregation of a portfolio segment. In
determining the classes, the Company considered the finance receivable characteristics and methods it applies in monitoring and
assessing credit risk and performance.</p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">The following table summarizes finance
receivables by the risk ratings that regulatory agencies utilize to classify credit exposure and which are consistent with indicators
the Company monitors. Risk ratings are reviewed on a regular basis and are adjusted as necessary for updated information affecting
the borrowers’ ability to fulfill their obligations.</p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0"> </p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0">The definitions of these ratings are as follows:</p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0"> </p>
<table cellspacing="0" cellpadding="0" style="font: 8pt Times New Roman, Times, Serif; width: 100%">
<tr style="vertical-align: top">
<td style="width: 24px"> </td>
<td style="width: 24px; line-height: 115%">·</td>
<td style="line-height: 115%; text-align: justify">Pass – finance receivables in this category do not meet the criteria for classification in one of the categories below.</td></tr>
</table>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0 0 0 0.5in; text-align: justify; text-indent: -0.25in"> </p>
<table cellspacing="0" cellpadding="0" style="font: 8pt Times New Roman, Times, Serif; width: 100%">
<tr style="vertical-align: top">
<td style="width: 24px"> </td>
<td style="width: 24px; line-height: 115%">·</td>
<td style="line-height: 115%; text-align: justify">Special mention – a special mention asset exhibits potential weaknesses that deserve management’s close attention. If left uncorrected, these potential weaknesses may, at some future date, result in the deterioration of the repayment prospects.</td></tr>
</table>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0 0 0 0.5in; text-align: justify; text-indent: -0.25in"> </p>
<table cellspacing="0" cellpadding="0" style="font: 8pt Times New Roman, Times, Serif; width: 100%">
<tr style="vertical-align: top">
<td style="width: 24px"> </td>
<td style="width: 24px; line-height: 115%">·</td>
<td style="line-height: 115%; text-align: justify">Classified – a classified asset ranges from: 1) assets that are inadequately protected by the current sound worth and paying capacity of the borrower, and are characterized by the distinct possibility that some loss will be sustained if the deficiencies are not corrected to 2) assets with weaknesses that make collection or liquidation in full unlikely on the basis of current facts, conditions, and values. Assets in this classification can be accruing or on non-accrual depending on the evaluation of these factors.</td></tr>
</table>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0 0 0 0.5in; text-align: justify; text-indent: -0.25in"> </p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">Finance Receivables – By Classification:</p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<table cellspacing="0" cellpadding="0" style="font: 8pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<tr style="vertical-align: bottom">
<td style="border-bottom: black 1pt solid; line-height: 115%"> </td>
<td style="border-bottom: black 1pt solid; line-height: 115%; font-weight: bold"> </td>
<td colspan="2" style="border-bottom: black 1pt solid; line-height: 115%; font-weight: bold; text-align: center">September 30, 2012</td>
<td style="border-bottom: black 1pt solid; line-height: 115%; font-weight: bold"> </td>
<td style="border-bottom: black 1pt solid; line-height: 115%; font-weight: bold"> </td>
<td colspan="2" style="border-bottom: black 1pt solid; line-height: 115%; font-weight: bold; text-align: center">December 31, 2011</td>
<td style="border-bottom: black 1pt solid; line-height: 115%; font-weight: bold"> </td></tr>
<tr style="vertical-align: bottom">
<td style="line-height: 115%; text-align: justify"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%; text-align: right"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%; text-align: right"> </td>
<td style="line-height: 115%"> </td></tr>
<tr style="vertical-align: bottom; background-color: #EEEEEE">
<td style="width: 59%; line-height: 115%; text-align: justify">Pass</td>
<td style="width: 2%; line-height: 115%"> </td>
<td style="width: 1%; line-height: 115%">$</td>
<td style="width: 17%; line-height: 115%; text-align: right">4,242</td>
<td style="width: 1%; line-height: 115%"> </td>
<td style="width: 1%; line-height: 115%"> </td>
<td style="width: 1%; line-height: 115%">$</td>
<td style="width: 17%; line-height: 115%; text-align: right">4,580</td>
<td style="width: 1%; line-height: 115%"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="line-height: 115%; text-align: justify">Special mention</td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%; text-align: right">–</td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%; text-align: right">–</td>
<td style="line-height: 115%"> </td></tr>
<tr style="vertical-align: bottom; background-color: #EEEEEE">
<td style="line-height: 115%; text-align: justify">Classified – accruing</td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%; text-align: right">–</td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%; text-align: right">–</td>
<td style="line-height: 115%"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="border-bottom: black 1pt solid; line-height: 115%; text-align: justify">Classified – nonaccrual</td>
<td style="border-bottom: black 1pt solid; line-height: 115%"> </td>
<td style="border-bottom: black 1pt solid; line-height: 115%"> </td>
<td style="border-bottom: black 1pt solid; line-height: 115%; text-align: right">–</td>
<td style="border-bottom: black 1pt solid; line-height: 115%"> </td>
<td style="border-bottom: black 1pt solid; line-height: 115%"> </td>
<td style="border-bottom: black 1pt solid; line-height: 115%"> </td>
<td style="border-bottom: black 1pt solid; line-height: 115%; text-align: right">–</td>
<td style="border-bottom: black 1pt solid; line-height: 115%"> </td></tr>
<tr style="vertical-align: bottom; background-color: #EEEEEE">
<td style="line-height: 115%; text-align: justify"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%; text-align: right"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%; text-align: right"> </td>
<td style="line-height: 115%"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="border-bottom: black 2.25pt double; padding-left: 22pt; line-height: 115%; text-align: justify">Total</td>
<td style="border-bottom: black 2.25pt double; line-height: 115%"> </td>
<td style="border-bottom: black 2.25pt double; line-height: 115%">$</td>
<td style="border-bottom: black 2.25pt double; line-height: 115%; text-align: right">4,242</td>
<td style="border-bottom: black 2.25pt double; line-height: 115%"> </td>
<td style="border-bottom: black 2.25pt double; line-height: 115%"> </td>
<td style="border-bottom: black 2.25pt double; line-height: 115%">$</td>
<td style="border-bottom: black 2.25pt double; line-height: 115%; text-align: right">4,580</td>
<td style="border-bottom: black 2.25pt double; line-height: 115%"> </td></tr>
</table>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"> At September 30, 2012 and December
31, 2011, there were no loans acquired with deteriorated credit quality, past due loans, impaired loans, or loans on nonaccrual
status.</p>
<p style="margin: 0pt"></p>
<table cellspacing="0" cellpadding="0" style="font: 8pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<tr style="vertical-align: bottom">
<td style="border-bottom: black 1pt solid; line-height: 115%; font-weight: bold; text-align: justify"> </td>
<td style="border-bottom: black 1pt solid; line-height: 115%; font-weight: bold"> </td>
<td colspan="2" style="border-bottom: black 1pt solid; line-height: 115%; font-weight: bold; text-align: center">September 30, <br /> 2012</td>
<td style="border-bottom: black 1pt solid; line-height: 115%; font-weight: bold"> </td>
<td style="border-bottom: black 1pt solid; line-height: 115%; font-weight: bold"> </td>
<td colspan="2" style="border-bottom: black 1pt solid; line-height: 115%; font-weight: bold; text-align: center">December 31,<br /> 2011</td>
<td style="border-bottom: black 1pt solid; line-height: 115%; font-weight: bold"> </td></tr>
<tr style="vertical-align: bottom">
<td style="line-height: 115%; font-weight: bold; text-align: justify"> </td>
<td style="line-height: 115%; font-weight: bold"> </td>
<td style="line-height: 115%; font-weight: bold"> </td>
<td style="line-height: 115%; font-weight: bold; text-align: right"> </td>
<td style="line-height: 115%; font-weight: bold"> </td>
<td style="line-height: 115%; font-weight: bold"> </td>
<td style="line-height: 115%; font-weight: bold"> </td>
<td style="line-height: 115%; font-weight: bold; text-align: right"> </td>
<td style="line-height: 115%; font-weight: bold"> </td></tr>
<tr style="vertical-align: bottom; background-color: #EEEEEE">
<td style="width: 66%; line-height: 115%">Commercial loans, net</td>
<td style="width: 2%; line-height: 115%"> </td>
<td style="width: 1%; line-height: 115%">$</td>
<td style="width: 13%; line-height: 115%; text-align: right">4,242</td>
<td style="width: 1%; line-height: 115%"> </td>
<td style="width: 2%; line-height: 115%"> </td>
<td style="width: 1%; line-height: 115%">$</td>
<td style="width: 13%; line-height: 115%; text-align: right">4,580</td>
<td style="width: 1%; line-height: 115%"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="border-bottom: black 1pt solid; line-height: 115%">Less:  Allowance for loan losses</td>
<td style="border-bottom: black 1pt solid; line-height: 115%"> </td>
<td style="border-bottom: black 1pt solid; line-height: 115%"> </td>
<td style="border-bottom: black 1pt solid; line-height: 115%; text-align: right">–</td>
<td style="border-bottom: black 1pt solid; line-height: 115%"> </td>
<td style="border-bottom: black 1pt solid; line-height: 115%"> </td>
<td style="border-bottom: black 1pt solid; line-height: 115%"> </td>
<td style="border-bottom: black 1pt solid; line-height: 115%; text-align: right">–</td>
<td style="border-bottom: black 1pt solid; line-height: 115%"> </td></tr>
<tr style="vertical-align: bottom; background-color: #EEEEEE">
<td style="line-height: 115%; text-align: justify"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%; text-align: right"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%; text-align: right"> </td>
<td style="line-height: 115%"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="border-bottom: black 2.25pt double; line-height: 115%; text-align: justify"> </td>
<td style="border-bottom: black 2.25pt double; line-height: 115%"> </td>
<td style="border-bottom: black 2.25pt double; line-height: 115%">$</td>
<td style="border-bottom: black 2.25pt double; line-height: 115%; text-align: right">4,242</td>
<td style="border-bottom: black 2.25pt double; line-height: 115%"> </td>
<td style="border-bottom: black 2.25pt double; line-height: 115%"> </td>
<td style="border-bottom: black 2.25pt double; line-height: 115%">$</td>
<td style="border-bottom: black 2.25pt double; line-height: 115%; text-align: right">4,580</td>
<td style="border-bottom: black 2.25pt double; line-height: 115%"> </td></tr>
</table>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">Roll forward of commercial loans:</p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<table cellspacing="0" cellpadding="0" style="font: 8pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<tr style="vertical-align: bottom">
<td style="border-bottom: black 1pt solid; line-height: 115%; font-weight: bold; text-align: justify"> </td>
<td style="border-bottom: black 1pt solid; line-height: 115%; font-weight: bold"> </td>
<td colspan="2" style="border-bottom: black 1pt solid; line-height: 115%; font-weight: bold; text-align: center">Nine Months<br /> Ended <br /> September 30,<br /> 2012</td>
<td style="border-bottom: black 1pt solid; line-height: 115%; font-weight: bold"> </td>
<td style="border-bottom: black 1pt solid; line-height: 115%; font-weight: bold"> </td>
<td colspan="2" style="border-bottom: black 1pt solid; line-height: 115%; font-weight: bold; text-align: center">Year <br /> Ended<br /> December 31, <br /> 2011</td>
<td style="border-bottom: black 1pt solid; line-height: 115%; font-weight: bold"> </td>
<td style="border-bottom: black 1pt solid; line-height: 115%; font-weight: bold"> </td>
<td colspan="2" style="border-bottom: black 1pt solid; line-height: 115%; font-weight: bold; text-align: center">Nine Months<br /> Ended <br /> September 30, <br /> 2011</td>
<td style="border-bottom: black 1pt solid; line-height: 115%; font-weight: bold"> </td></tr>
<tr style="vertical-align: bottom">
<td style="line-height: 115%; font-weight: bold; text-align: justify"> </td>
<td style="line-height: 115%; font-weight: bold"> </td>
<td style="line-height: 115%; font-weight: bold"> </td>
<td style="line-height: 115%; font-weight: bold; text-align: right"> </td>
<td style="line-height: 115%; font-weight: bold"> </td>
<td style="line-height: 115%; font-weight: bold"> </td>
<td style="line-height: 115%; font-weight: bold"> </td>
<td style="line-height: 115%; font-weight: bold; text-align: right"> </td>
<td style="line-height: 115%; font-weight: bold"> </td>
<td style="line-height: 115%; font-weight: bold"> </td>
<td style="line-height: 115%; font-weight: bold"> </td>
<td style="line-height: 115%; font-weight: bold; text-align: right"> </td>
<td style="line-height: 115%; font-weight: bold"> </td></tr>
<tr style="vertical-align: bottom; background-color: #EEEEEE">
<td style="width: 55%; line-height: 115%">Beginning balance</td>
<td style="width: 2%; line-height: 115%"> </td>
<td style="width: 1%; line-height: 115%">$</td>
<td style="width: 11%; line-height: 115%; text-align: right">4,580</td>
<td style="width: 1%; line-height: 115%"> </td>
<td style="width: 2%; line-height: 115%"> </td>
<td style="width: 1%; line-height: 115%">$</td>
<td style="width: 11%; line-height: 115%; text-align: right">–</td>
<td style="width: 1%; line-height: 115%"> </td>
<td style="width: 2%; line-height: 115%"> </td>
<td style="width: 1%; line-height: 115%">$</td>
<td style="width: 11%; line-height: 115%; text-align: right">–</td>
<td style="width: 1%; line-height: 115%"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="padding-left: 11pt; line-height: 115%">Additions</td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%; text-align: right">300</td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%; text-align: right">4,580</td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%; text-align: right">–</td>
<td style="line-height: 115%"> </td></tr>
<tr style="vertical-align: bottom; background-color: #EEEEEE">
<td style="padding-left: 11pt; line-height: 115%">Payoffs/Sales</td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%; text-align: right">(804</td>
<td style="line-height: 115%">)</td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%; text-align: right">–</td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%; text-align: right">–</td>
<td style="line-height: 115%"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="border-bottom: black 1pt solid; padding-left: 11pt; line-height: 115%">Earned loan fee</td>
<td style="border-bottom: black 1pt solid; line-height: 115%"> </td>
<td style="border-bottom: black 1pt solid; line-height: 115%"> </td>
<td style="border-bottom: black 1pt solid; line-height: 115%; text-align: right">166</td>
<td style="border-bottom: black 1pt solid; line-height: 115%"> </td>
<td style="border-bottom: black 1pt solid; line-height: 115%"> </td>
<td style="border-bottom: black 1pt solid; line-height: 115%"> </td>
<td style="border-bottom: black 1pt solid; line-height: 115%; text-align: right">–</td>
<td style="border-bottom: black 1pt solid; line-height: 115%"> </td>
<td style="border-bottom: black 1pt solid; line-height: 115%"> </td>
<td style="border-bottom: black 1pt solid; line-height: 115%"> </td>
<td style="border-bottom: black 1pt solid; line-height: 115%; text-align: right">–</td>
<td style="border-bottom: black 1pt solid; line-height: 115%"> </td></tr>
<tr style="vertical-align: bottom; background-color: #EEEEEE">
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%; text-align: right"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%; text-align: right"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%; text-align: right"> </td>
<td style="line-height: 115%"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="border-bottom: black 2.25pt double; line-height: 115%">Ending balance</td>
<td style="border-bottom: black 2.25pt double; line-height: 115%"> </td>
<td style="border-bottom: black 2.25pt double; line-height: 115%">$</td>
<td style="border-bottom: black 2.25pt double; line-height: 115%; text-align: right">4,242</td>
<td style="border-bottom: black 2.25pt double; line-height: 115%"> </td>
<td style="border-bottom: black 2.25pt double; line-height: 115%"> </td>
<td style="border-bottom: black 2.25pt double; line-height: 115%">$</td>
<td style="border-bottom: black 2.25pt double; line-height: 115%; text-align: right">4,580</td>
<td style="border-bottom: black 2.25pt double; line-height: 115%"> </td>
<td style="border-bottom: black 2.25pt double; line-height: 115%"> </td>
<td style="border-bottom: black 2.25pt double; line-height: 115%">$</td>
<td style="border-bottom: black 2.25pt double; line-height: 115%; text-align: right">–</td>
<td style="border-bottom: black 2.25pt double; line-height: 115%"> </td></tr>
</table>
<table cellspacing="0" cellpadding="0" style="font: 8pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<tr style="vertical-align: bottom">
<td style="border-bottom: black 1pt solid; line-height: 115%; font-weight: bold; text-align: center">Item</td>
<td style="border-bottom: black 1pt solid; line-height: 115%; font-weight: bold"> </td>
<td colspan="2" style="border-bottom: black 1pt solid; line-height: 115%; font-weight: bold; text-align: center">Term</td>
<td style="border-bottom: black 1pt solid; line-height: 115%; font-weight: bold"> </td>
<td style="border-bottom: black 1pt solid; line-height: 115%; font-weight: bold"> </td>
<td style="border-bottom: black 1pt solid; line-height: 115%; font-weight: bold; text-align: center">Interest Rate</td>
<td style="border-bottom: black 1pt solid; line-height: 115%; font-weight: bold"> </td>
<td colspan="2" style="border-bottom: black 1pt solid; line-height: 115%; font-weight: bold; text-align: center">Funded to<br /> borrower</td>
<td style="border-bottom: black 1pt solid; line-height: 115%; font-weight: bold"> </td>
<td style="border-bottom: black 1pt solid; line-height: 115%; font-weight: bold"> </td>
<td colspan="2" style="border-bottom: black 1pt solid; line-height: 115%; font-weight: bold; text-align: center">Estimated <br /> collateral<br /> values</td>
<td style="border-bottom: black 1pt solid; line-height: 115%; font-weight: bold"> </td></tr>
<tr style="vertical-align: bottom">
<td style="line-height: 115%; text-align: center"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%; text-align: right"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="padding-left: 5.4pt; line-height: 115%; text-align: center"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%; text-align: right"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%; text-align: right"> </td>
<td style="line-height: 115%"> </td></tr>
<tr style="vertical-align: bottom; background-color: #EEEEEE">
<td style="line-height: 115%; font-style: italic">BMH Loan</td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%; text-align: center">Demand*</td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="padding-left: 5.4pt; line-height: 115%; text-align: center">COF +2%  (7% Floor)</td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%; text-align: right"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%; text-align: right"> </td>
<td style="line-height: 115%"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="width: 32%; padding-left: 11pt; line-height: 115%">10 Lots</td>
<td style="width: 2%; line-height: 115%"> </td>
<td style="width: 1%; line-height: 115%"> </td>
<td style="width: 12%; line-height: 115%; text-align: right"> </td>
<td style="width: 1%; line-height: 115%"> </td>
<td style="width: 2%; line-height: 115%"> </td>
<td style="width: 20%; padding-left: 5.4pt; line-height: 115%; text-align: right"> </td>
<td style="width: 2%; line-height: 115%"> </td>
<td style="width: 1%; line-height: 115%">$</td>
<td style="width: 11%; line-height: 115%; text-align: right">1,822</td>
<td style="width: 1%; line-height: 115%"> </td>
<td style="width: 2%; line-height: 115%"> </td>
<td style="width: 1%; line-height: 115%">$</td>
<td style="width: 11%; line-height: 115%; text-align: right">1,330</td>
<td style="width: 1%; line-height: 115%"> </td></tr>
<tr style="vertical-align: bottom; background-color: #EEEEEE">
<td style="padding-left: 11pt; line-height: 115%">Land for phases 3, 4 and 5</td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%; text-align: right"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="padding-left: 5.4pt; line-height: 115%; text-align: right"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%; text-align: right">–</td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%; text-align: right">1,760</td>
<td style="line-height: 115%"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="padding-left: 11pt; line-height: 115%">Interest Escrow</td>
<td style="line-height: 115%; font-weight: bold"> </td>
<td style="line-height: 115%; font-weight: bold"> </td>
<td style="line-height: 115%; font-weight: bold; text-align: right"> </td>
<td style="line-height: 115%; font-weight: bold"> </td>
<td style="line-height: 115%; font-weight: bold"> </td>
<td style="padding-left: 5.4pt; line-height: 115%; font-weight: bold; text-align: right"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%; text-align: right">450</td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%; text-align: right">324</td>
<td style="line-height: 115%"> </td></tr>
<tr style="vertical-align: bottom; background-color: #EEEEEE">
<td style="border-bottom: black 1pt solid; padding-left: 11pt; line-height: 115%">Loan Fee</td>
<td style="border-bottom: black 1pt solid; line-height: 115%"> </td>
<td style="border-bottom: black 1pt solid; line-height: 115%"> </td>
<td style="border-bottom: black 1pt solid; line-height: 115%; text-align: right"> </td>
<td style="border-bottom: black 1pt solid; line-height: 115%"> </td>
<td style="border-bottom: black 1pt solid; line-height: 115%"> </td>
<td style="border-bottom: black 1pt solid; padding-left: 5.4pt; line-height: 115%; text-align: right"> </td>
<td style="border-bottom: black 1pt solid; line-height: 115%"> </td>
<td style="border-bottom: black 1pt solid; line-height: 115%"> </td>
<td style="border-bottom: black 1pt solid; line-height: 115%; text-align: right">750</td>
<td style="border-bottom: black 1pt solid; line-height: 115%"> </td>
<td style="border-bottom: black 1pt solid; line-height: 115%"> </td>
<td style="border-bottom: black 1pt solid; line-height: 115%"> </td>
<td style="border-bottom: black 1pt solid; line-height: 115%; text-align: right">–</td>
<td style="border-bottom: black 1pt solid; line-height: 115%"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%; text-align: right"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="padding-left: 5.4pt; line-height: 115%; text-align: right"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%; text-align: right"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%; text-align: right"> </td>
<td style="line-height: 115%"> </td></tr>
<tr style="vertical-align: bottom; background-color: #EEEEEE">
<td style="border-bottom: black 1pt solid; line-height: 115%; font-weight: bold">Total BMH Loan</td>
<td style="border-bottom: black 1pt solid; line-height: 115%; font-weight: bold"> </td>
<td style="border-bottom: black 1pt solid; line-height: 115%; font-weight: bold"> </td>
<td style="border-bottom: black 1pt solid; line-height: 115%; font-weight: bold; text-align: right"> </td>
<td style="border-bottom: black 1pt solid; line-height: 115%; font-weight: bold"> </td>
<td style="border-bottom: black 1pt solid; line-height: 115%; font-weight: bold"> </td>
<td style="border-bottom: black 1pt solid; padding-left: 5.4pt; line-height: 115%; font-weight: bold; text-align: right"> </td>
<td style="border-bottom: black 1pt solid; line-height: 115%; font-weight: bold"> </td>
<td style="border-bottom: black 1pt solid; line-height: 115%; font-weight: bold"> </td>
<td style="border-bottom: black 1pt solid; line-height: 115%; font-weight: bold; text-align: right">3,022</td>
<td style="border-bottom: black 1pt solid; line-height: 115%; font-weight: bold"> </td>
<td style="border-bottom: black 1pt solid; line-height: 115%; font-weight: bold"> </td>
<td style="border-bottom: black 1pt solid; line-height: 115%; font-weight: bold"> </td>
<td style="border-bottom: black 1pt solid; line-height: 115%; font-weight: bold; text-align: right">3,414</td>
<td style="border-bottom: black 1pt solid; line-height: 115%; font-weight: bold"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="line-height: 115%; font-style: italic"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%; text-align: right"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="padding-left: 5.4pt; line-height: 115%; text-align: right"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%; text-align: right"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%; text-align: right"> </td>
<td style="line-height: 115%"> </td></tr>
<tr style="vertical-align: bottom; background-color: #EEEEEE">
<td style="line-height: 115%; font-style: italic">IMA Loans</td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%; text-align: right"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="padding-left: 5.4pt; line-height: 115%; text-align: right"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%; text-align: right"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%; text-align: right"> </td>
<td style="line-height: 115%"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="padding-left: 11pt; line-height: 115%">New IMA Loan (loan fee)</td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%; text-align: center">Demand*</td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="padding-left: 5.4pt; line-height: 115%; text-align: center">COF +2%  (7% Floor)</td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%; text-align: right">250</td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%; text-align: right">–</td>
<td style="line-height: 115%"> </td></tr>
<tr style="vertical-align: bottom; background-color: #EEEEEE">
<td style="padding-left: 11pt; line-height: 115%">New IMA Loan (advances)</td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%; text-align: center">Demand*</td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="padding-left: 5.4pt; line-height: 115%; text-align: center">COF +2%  (7% Floor)</td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%; text-align: right">41</td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%; text-align: right">–</td>
<td style="line-height: 115%"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="border-bottom: black 1pt solid; padding-left: 11pt; line-height: 115%">Existing IMA Loan</td>
<td style="border-bottom: black 1pt solid; line-height: 115%"> </td>
<td style="border-bottom: black 1pt solid; line-height: 115%"> </td>
<td style="border-bottom: black 1pt solid; line-height: 115%; text-align: center"> Demand**</td>
<td style="border-bottom: black 1pt solid; line-height: 115%"> </td>
<td style="border-bottom: black 1pt solid; line-height: 115%"> </td>
<td style="border-bottom: black 1pt solid; padding-left: 5.4pt; line-height: 115%; text-align: center">7%</td>
<td style="border-bottom: black 1pt solid; line-height: 115%"> </td>
<td style="border-bottom: black 1pt solid; line-height: 115%"> </td>
<td style="border-bottom: black 1pt solid; line-height: 115%; text-align: right">1,687</td>
<td style="border-bottom: black 1pt solid; line-height: 115%"> </td>
<td style="border-bottom: black 1pt solid; line-height: 115%"> </td>
<td style="border-bottom: black 1pt solid; line-height: 115%"> </td>
<td style="border-bottom: black 1pt solid; line-height: 115%; text-align: right">1,910</td>
<td style="border-bottom: black 1pt solid; line-height: 115%"> </td></tr>
<tr style="vertical-align: bottom; background-color: #EEEEEE">
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%; text-align: right"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="padding-left: 5.4pt; line-height: 115%; text-align: center"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%; text-align: right"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%; text-align: right"> </td>
<td style="line-height: 115%"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="border-bottom: black 1pt solid; line-height: 115%; font-weight: bold">Total IMA Loans</td>
<td style="border-bottom: black 1pt solid; line-height: 115%"> </td>
<td style="border-bottom: black 1pt solid; line-height: 115%"> </td>
<td style="border-bottom: black 1pt solid; line-height: 115%; text-align: right"> </td>
<td style="border-bottom: black 1pt solid; line-height: 115%"> </td>
<td style="border-bottom: black 1pt solid; line-height: 115%"> </td>
<td style="border-bottom: black 1pt solid; padding-left: 5.4pt; line-height: 115%; text-align: right"> </td>
<td style="border-bottom: black 1pt solid; line-height: 115%; font-weight: bold"> </td>
<td style="border-bottom: black 1pt solid; line-height: 115%; font-weight: bold"> </td>
<td style="border-bottom: black 1pt solid; line-height: 115%; font-weight: bold; text-align: right">1,978</td>
<td style="border-bottom: black 1pt solid; line-height: 115%; font-weight: bold"> </td>
<td style="border-bottom: black 1pt solid; line-height: 115%; font-weight: bold"> </td>
<td style="border-bottom: black 1pt solid; line-height: 115%; font-weight: bold"> </td>
<td style="border-bottom: black 1pt solid; line-height: 115%; font-weight: bold; text-align: right">1,910</td>
<td style="border-bottom: black 1pt solid; line-height: 115%; font-weight: bold"> </td></tr>
<tr style="vertical-align: bottom; background-color: #EEEEEE">
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%; text-align: right"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="padding-left: 5.4pt; line-height: 115%; text-align: right"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%; text-align: right"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%; text-align: right"> </td>
<td style="line-height: 115%"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="line-height: 115%">Unearned loan fee</td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%; text-align: right"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="padding-left: 5.4pt; line-height: 115%; text-align: right"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%; text-align: right">(758</td>
<td style="line-height: 115%">)</td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%; text-align: right">-</td>
<td style="line-height: 115%"> </td></tr>
<tr style="vertical-align: bottom; background-color: #EEEEEE">
<td style="border-bottom: black 1pt solid; line-height: 115%">SF Loan</td>
<td style="border-bottom: black 1pt solid; line-height: 115%"> </td>
<td style="border-bottom: black 1pt solid; line-height: 115%"> </td>
<td style="border-bottom: black 1pt solid; line-height: 115%; text-align: right"> </td>
<td style="border-bottom: black 1pt solid; line-height: 115%"> </td>
<td style="border-bottom: black 1pt solid; line-height: 115%"> </td>
<td style="border-bottom: black 1pt solid; padding-left: 5.4pt; line-height: 115%; text-align: right"> </td>
<td style="border-bottom: black 1pt solid; line-height: 115%"> </td>
<td style="border-bottom: black 1pt solid; line-height: 115%"> </td>
<td style="border-bottom: black 1pt solid; line-height: 115%; text-align: right">-</td>
<td style="border-bottom: black 1pt solid"> </td>
<td style="border-bottom: black 1pt solid; line-height: 115%"> </td>
<td style="border-bottom: black 1pt solid; line-height: 115%"> </td>
<td style="border-bottom: black 1pt solid; line-height: 115%; text-align: right">1,500</td>
<td style="border-bottom: black 1pt solid; line-height: 115%"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%; text-align: right"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="padding-left: 5.4pt; line-height: 115%; text-align: right"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%; text-align: right"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%; text-align: right"> </td>
<td style="line-height: 115%"> </td></tr>
<tr style="vertical-align: bottom; background-color: #EEEEEE">
<td style="border-bottom: black 1pt solid; line-height: 115%; font-weight: bold">Total</td>
<td style="border-bottom: black 1pt solid; line-height: 115%; font-weight: bold"> </td>
<td style="border-bottom: black 1pt solid; line-height: 115%; font-weight: bold"> </td>
<td style="border-bottom: black 1pt solid; line-height: 115%; font-weight: bold; text-align: right"> </td>
<td style="border-bottom: black 1pt solid; line-height: 115%; font-weight: bold"> </td>
<td style="border-bottom: black 1pt solid; line-height: 115%; font-weight: bold"> </td>
<td style="border-bottom: black 1pt solid; padding-left: 5.4pt; line-height: 115%; font-weight: bold; text-align: right"> </td>
<td style="border-bottom: black 1pt solid; line-height: 115%; font-weight: bold"> </td>
<td style="border-bottom: black 1pt solid; line-height: 115%; font-weight: bold">$</td>
<td style="border-bottom: black 1pt solid; line-height: 115%; font-weight: bold; text-align: right">4,242</td>
<td style="border-bottom: black 1pt solid; line-height: 115%; font-weight: bold"> </td>
<td style="border-bottom: black 1pt solid; line-height: 115%; font-weight: bold"> </td>
<td style="border-bottom: black 1pt solid; line-height: 115%; font-weight: bold">$</td>
<td style="border-bottom: black 1pt solid; line-height: 115%; font-weight: bold; text-align: right">6,824</td>
<td style="border-bottom: black 1pt solid; line-height: 115%; font-weight: bold"> </td></tr>
</table>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0"> </p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0"> </p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0">A detail of the financing receivables at December 31, 2011:</p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0"> </p>
<table cellspacing="0" cellpadding="0" style="font: 8pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<tr style="vertical-align: bottom">
<td style="border-bottom: black 1pt solid; line-height: 115%; font-weight: bold; text-align: center">Item</td>
<td style="border-bottom: black 1pt solid; line-height: 115%; font-weight: bold"> </td>
<td colspan="2" style="border-bottom: black 1pt solid; line-height: 115%; font-weight: bold; text-align: center">Term</td>
<td style="border-bottom: black 1pt solid; line-height: 115%; font-weight: bold"> </td>
<td style="border-bottom: black 1pt solid; line-height: 115%; font-weight: bold"> </td>
<td style="border-bottom: black 1pt solid; line-height: 115%; font-weight: bold; text-align: center">Interest Rate</td>
<td style="border-bottom: black 1pt solid; line-height: 115%; font-weight: bold"> </td>
<td colspan="2" style="border-bottom: black 1pt solid; line-height: 115%; font-weight: bold; text-align: center">Funded to<br /> borrower</td>
<td style="border-bottom: black 1pt solid; line-height: 115%; font-weight: bold"> </td>
<td style="border-bottom: black 1pt solid; line-height: 115%; font-weight: bold"> </td>
<td colspan="2" style="border-bottom: black 1pt solid; line-height: 115%; font-weight: bold; text-align: center">Estimated <br /> collateral<br /> values</td>
<td style="border-bottom: black 1pt solid; line-height: 115%; font-weight: bold"> </td></tr>
<tr style="vertical-align: bottom">
<td style="line-height: 115%; text-align: center"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%; text-align: right"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="padding-left: 5.4pt; line-height: 115%; text-align: center"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%; text-align: right"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%; text-align: right"> </td>
<td style="line-height: 115%"> </td></tr>
<tr style="vertical-align: bottom; background-color: #EEEEEE">
<td style="line-height: 115%; font-style: italic">BMH Loan</td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%; text-align: center">Demand*</td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="padding-left: 5.4pt; line-height: 115%; text-align: center">COF +2%  (7% Floor)</td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%; text-align: right"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%; text-align: right"> </td>
<td style="line-height: 115%"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="width: 32%; line-height: 115%">   16 Lots</td>
<td style="width: 2%; line-height: 115%"> </td>
<td style="width: 1%; line-height: 115%"> </td>
<td style="width: 12%; line-height: 115%; text-align: right"> </td>
<td style="width: 1%; line-height: 115%"> </td>
<td style="width: 2%; line-height: 115%"> </td>
<td style="width: 20%; padding-left: 5.4pt; line-height: 115%; text-align: right"> </td>
<td style="width: 2%; line-height: 115%"> </td>
<td style="width: 1%; line-height: 115%">$</td>
<td style="width: 11%; line-height: 115%; text-align: right">2,368</td>
<td style="width: 1%; line-height: 115%"> </td>
<td style="width: 2%; line-height: 115%"> </td>
<td style="width: 1%; line-height: 115%">$</td>
<td style="width: 11%; line-height: 115%; text-align: right">1,930</td>
<td style="width: 1%; line-height: 115%"> </td></tr>
<tr style="vertical-align: bottom; background-color: #EEEEEE">
<td style="line-height: 115%">   Land for phases 3, 4 and 5</td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%; text-align: right"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="padding-left: 5.4pt; line-height: 115%; text-align: right"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%; text-align: right">–</td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%; text-align: right">1,760</td>
<td style="line-height: 115%"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="line-height: 115%">   Interest Escrow</td>
<td style="line-height: 115%; font-weight: bold"> </td>
<td style="line-height: 115%; font-weight: bold"> </td>
<td style="line-height: 115%; font-weight: bold; text-align: right"> </td>
<td style="line-height: 115%; font-weight: bold"> </td>
<td style="line-height: 115%; font-weight: bold"> </td>
<td style="padding-left: 5.4pt; line-height: 115%; font-weight: bold; text-align: right"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%; text-align: right">450</td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%; text-align: right">450</td>
<td style="line-height: 115%"> </td></tr>
<tr style="vertical-align: bottom; background-color: #EEEEEE">
<td style="border-bottom: black 1pt solid; line-height: 115%">   Loan Fee</td>
<td style="border-bottom: black 1pt solid; line-height: 115%"> </td>
<td style="border-bottom: black 1pt solid; line-height: 115%"> </td>
<td style="border-bottom: black 1pt solid; line-height: 115%; text-align: right"> </td>
<td style="border-bottom: black 1pt solid; line-height: 115%"> </td>
<td style="border-bottom: black 1pt solid; line-height: 115%"> </td>
<td style="border-bottom: black 1pt solid; padding-left: 5.4pt; line-height: 115%; text-align: right"> </td>
<td style="border-bottom: black 1pt solid; line-height: 115%"> </td>
<td style="border-bottom: black 1pt solid; line-height: 115%"> </td>
<td style="border-bottom: black 1pt solid; line-height: 115%; text-align: right">750</td>
<td style="border-bottom: black 1pt solid; line-height: 115%"> </td>
<td style="border-bottom: black 1pt solid; line-height: 115%"> </td>
<td style="border-bottom: black 1pt solid; line-height: 115%"> </td>
<td style="border-bottom: black 1pt solid; line-height: 115%; text-align: right">–</td>
<td style="border-bottom: black 1pt solid; line-height: 115%"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%; text-align: right"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="padding-left: 5.4pt; line-height: 115%; text-align: right"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%; text-align: right"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%; text-align: right"> </td>
<td style="line-height: 115%"> </td></tr>
<tr style="vertical-align: bottom; background-color: #EEEEEE">
<td style="border-bottom: black 1pt solid; line-height: 115%; font-weight: bold">Total BMH Loan</td>
<td style="border-bottom: black 1pt solid; line-height: 115%; font-weight: bold"> </td>
<td style="border-bottom: black 1pt solid; line-height: 115%; font-weight: bold"> </td>
<td style="border-bottom: black 1pt solid; line-height: 115%; font-weight: bold; text-align: right"> </td>
<td style="border-bottom: black 1pt solid; line-height: 115%; font-weight: bold"> </td>
<td style="border-bottom: black 1pt solid; line-height: 115%; font-weight: bold"> </td>
<td style="border-bottom: black 1pt solid; padding-left: 5.4pt; line-height: 115%; font-weight: bold; text-align: right"> </td>
<td style="border-bottom: black 1pt solid; line-height: 115%; font-weight: bold"> </td>
<td style="border-bottom: black 1pt solid; line-height: 115%; font-weight: bold"> </td>
<td style="border-bottom: black 1pt solid; line-height: 115%; font-weight: bold; text-align: right">3,568</td>
<td style="border-bottom: black 1pt solid; line-height: 115%; font-weight: bold"> </td>
<td style="border-bottom: black 1pt solid; line-height: 115%; font-weight: bold"> </td>
<td style="border-bottom: black 1pt solid; line-height: 115%; font-weight: bold"> </td>
<td style="border-bottom: black 1pt solid; line-height: 115%; font-weight: bold; text-align: right">4,140</td>
<td style="border-bottom: black 1pt solid; line-height: 115%; font-weight: bold"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="line-height: 115%; font-style: italic"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%; text-align: right"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="padding-left: 5.4pt; line-height: 115%; text-align: right"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%; text-align: right"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%; text-align: right"> </td>
<td style="line-height: 115%"> </td></tr>
<tr style="vertical-align: bottom; background-color: #EEEEEE">
<td style="line-height: 115%; font-style: italic">IMA Loans</td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%; text-align: right"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="padding-left: 5.4pt; line-height: 115%; text-align: right"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%; text-align: right"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%; text-align: right"> </td>
<td style="line-height: 115%"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="line-height: 115%">   New IMA Loan (loan fee)</td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%; text-align: center">Demand*</td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="padding-left: 5.4pt; line-height: 115%; text-align: center">COF +2%  (7% Floor)</td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%; text-align: right">250</td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%; text-align: right">–</td>
<td style="line-height: 115%"> </td></tr>
<tr style="vertical-align: bottom; background-color: #EEEEEE">
<td style="border-bottom: black 1pt solid; line-height: 115%">   Existing IMA Loan</td>
<td style="border-bottom: black 1pt solid; line-height: 115%"> </td>
<td style="border-bottom: black 1pt solid; line-height: 115%"> </td>
<td style="border-bottom: black 1pt solid; line-height: 115%; text-align: center"> Demand**</td>
<td style="border-bottom: black 1pt solid; line-height: 115%"> </td>
<td style="border-bottom: black 1pt solid; line-height: 115%"> </td>
<td style="border-bottom: black 1pt solid; padding-left: 5.4pt; line-height: 115%; text-align: center">7%</td>
<td style="border-bottom: black 1pt solid; line-height: 115%"> </td>
<td style="border-bottom: black 1pt solid; line-height: 115%"> </td>
<td style="border-bottom: black 1pt solid; line-height: 115%; text-align: right">1,686</td>
<td style="border-bottom: black 1pt solid; line-height: 115%"> </td>
<td style="border-bottom: black 1pt solid; line-height: 115%"> </td>
<td style="border-bottom: black 1pt solid; line-height: 115%"> </td>
<td style="border-bottom: black 1pt solid; line-height: 115%; text-align: right">1,910</td>
<td style="border-bottom: black 1pt solid; line-height: 115%"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%; text-align: right"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="padding-left: 5.4pt; line-height: 115%; text-align: center"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%; text-align: right"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%; text-align: right"> </td>
<td style="line-height: 115%"> </td></tr>
<tr style="vertical-align: bottom; background-color: #EEEEEE">
<td style="border-bottom: black 1pt solid; line-height: 115%; font-weight: bold">Total IMA Loans</td>
<td style="border-bottom: black 1pt solid; line-height: 115%"> </td>
<td style="border-bottom: black 1pt solid; line-height: 115%"> </td>
<td style="border-bottom: black 1pt solid; line-height: 115%; text-align: right"> </td>
<td style="border-bottom: black 1pt solid; line-height: 115%"> </td>
<td style="border-bottom: black 1pt solid; line-height: 115%"> </td>
<td style="border-bottom: black 1pt solid; padding-left: 5.4pt; line-height: 115%; text-align: right"> </td>
<td style="border-bottom: black 1pt solid; line-height: 115%; font-weight: bold"> </td>
<td style="border-bottom: black 1pt solid; line-height: 115%; font-weight: bold"> </td>
<td style="border-bottom: black 1pt solid; line-height: 115%; font-weight: bold; text-align: right">1,936</td>
<td style="border-bottom: black 1pt solid; line-height: 115%; font-weight: bold"> </td>
<td style="border-bottom: black 1pt solid; line-height: 115%; font-weight: bold"> </td>
<td style="border-bottom: black 1pt solid; line-height: 115%; font-weight: bold"> </td>
<td style="border-bottom: black 1pt solid; line-height: 115%; font-weight: bold; text-align: right">1,910</td>
<td style="border-bottom: black 1pt solid; line-height: 115%; font-weight: bold"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%; text-align: right"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="padding-left: 5.4pt; line-height: 115%; text-align: right"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%; text-align: right"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%; text-align: right"> </td>
<td style="line-height: 115%"> </td></tr>
<tr style="vertical-align: bottom; background-color: #EEEEEE">
<td style="border-bottom: black 1pt solid; line-height: 115%">Unearned loan fee <br /> SF Loan</td>
<td style="border-bottom: black 1pt solid; line-height: 115%"> </td>
<td style="border-bottom: black 1pt solid; line-height: 115%"> </td>
<td style="border-bottom: black 1pt solid; line-height: 115%; text-align: right"> </td>
<td style="border-bottom: black 1pt solid; line-height: 115%"> </td>
<td style="border-bottom: black 1pt solid; line-height: 115%"> </td>
<td style="border-bottom: black 1pt solid; padding-left: 5.4pt; line-height: 115%; text-align: right"> </td>
<td style="border-bottom: black 1pt solid; line-height: 115%"> </td>
<td style="border-bottom: black 1pt solid; line-height: 115%"> </td>
<td style="border-bottom: black 1pt solid; line-height: 115%; text-align: right">(924</td>
<td style="border-bottom: black 1pt solid; line-height: 115%">)-</td>
<td style="border-bottom: black 1pt solid; line-height: 115%"> </td>
<td style="border-bottom: black 1pt solid; line-height: 115%"> </td>
<td style="border-bottom: black 1pt solid; line-height: 115%; text-align: right">-1,500</td>
<td style="border-bottom: black 1pt solid; line-height: 115%"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%; text-align: right"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="padding-left: 5.4pt; line-height: 115%; text-align: right"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%; text-align: right"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%; text-align: right"> </td>
<td style="line-height: 115%"> </td></tr>
<tr style="vertical-align: bottom; background-color: #EEEEEE">
<td style="border-bottom: black 1pt solid; line-height: 115%; font-weight: bold">Total</td>
<td style="border-bottom: black 1pt solid; line-height: 115%; font-weight: bold"> </td>
<td style="border-bottom: black 1pt solid; line-height: 115%; font-weight: bold"> </td>
<td style="border-bottom: black 1pt solid; line-height: 115%; font-weight: bold; text-align: right"> </td>
<td style="border-bottom: black 1pt solid; line-height: 115%; font-weight: bold"> </td>
<td style="border-bottom: black 1pt solid; line-height: 115%; font-weight: bold"> </td>
<td style="border-bottom: black 1pt solid; padding-left: 5.4pt; line-height: 115%; font-weight: bold; text-align: right"> </td>
<td style="border-bottom: black 1pt solid; line-height: 115%; font-weight: bold"> </td>
<td style="border-bottom: black 1pt solid; line-height: 115%; font-weight: bold">$</td>
<td style="border-bottom: black 1pt solid; line-height: 115%; font-weight: bold; text-align: right">4,580</td>
<td style="border-bottom: black 1pt solid; line-height: 115%; font-weight: bold"> </td>
<td style="border-bottom: black 1pt solid; line-height: 115%; font-weight: bold"> </td>
<td style="border-bottom: black 1pt solid; line-height: 115%; font-weight: bold">$</td>
<td style="border-bottom: black 1pt solid; line-height: 115%; font-weight: bold; text-align: right">7,550</td>
<td style="border-bottom: black 1pt solid; line-height: 115%; font-weight: bold"> </td></tr>
</table>
<table cellspacing="0" cellpadding="0" style="font: 8pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<tr style="vertical-align: bottom">
<td style="border-bottom: black 1pt solid; line-height: 115%"> </td>
<td style="border-bottom: black 1pt solid; line-height: 115%; font-weight: bold"> </td>
<td colspan="2" style="border-bottom: black 1pt solid; line-height: 115%; font-weight: bold; text-align: center">September 30, 2012</td>
<td style="border-bottom: black 1pt solid; line-height: 115%; font-weight: bold"> </td>
<td style="border-bottom: black 1pt solid; line-height: 115%; font-weight: bold"> </td>
<td colspan="2" style="border-bottom: black 1pt solid; line-height: 115%; font-weight: bold; text-align: center">December 31, 2011</td>
<td style="border-bottom: black 1pt solid; line-height: 115%; font-weight: bold"> </td></tr>
<tr style="vertical-align: bottom">
<td style="line-height: 115%; text-align: justify"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%; text-align: right"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%; text-align: right"> </td>
<td style="line-height: 115%"> </td></tr>
<tr style="vertical-align: bottom; background-color: #EEEEEE">
<td style="width: 59%; line-height: 115%; text-align: justify">Pass</td>
<td style="width: 2%; line-height: 115%"> </td>
<td style="width: 1%; line-height: 115%">$</td>
<td style="width: 17%; line-height: 115%; text-align: right">4,242</td>
<td style="width: 1%; line-height: 115%"> </td>
<td style="width: 1%; line-height: 115%"> </td>
<td style="width: 1%; line-height: 115%">$</td>
<td style="width: 17%; line-height: 115%; text-align: right">4,580</td>
<td style="width: 1%; line-height: 115%"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="line-height: 115%; text-align: justify">Special mention</td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%; text-align: right">–</td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%; text-align: right">–</td>
<td style="line-height: 115%"> </td></tr>
<tr style="vertical-align: bottom; background-color: #EEEEEE">
<td style="line-height: 115%; text-align: justify">Classified – accruing</td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%; text-align: right">–</td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%; text-align: right">–</td>
<td style="line-height: 115%"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="border-bottom: black 1pt solid; line-height: 115%; text-align: justify">Classified – nonaccrual</td>
<td style="border-bottom: black 1pt solid; line-height: 115%"> </td>
<td style="border-bottom: black 1pt solid; line-height: 115%"> </td>
<td style="border-bottom: black 1pt solid; line-height: 115%; text-align: right">–</td>
<td style="border-bottom: black 1pt solid; line-height: 115%"> </td>
<td style="border-bottom: black 1pt solid; line-height: 115%"> </td>
<td style="border-bottom: black 1pt solid; line-height: 115%"> </td>
<td style="border-bottom: black 1pt solid; line-height: 115%; text-align: right">–</td>
<td style="border-bottom: black 1pt solid; line-height: 115%"> </td></tr>
<tr style="vertical-align: bottom; background-color: #EEEEEE">
<td style="line-height: 115%; text-align: justify"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%; text-align: right"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%; text-align: right"> </td>
<td style="line-height: 115%"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="border-bottom: black 2.25pt double; padding-left: 22pt; line-height: 115%; text-align: justify">Total</td>
<td style="border-bottom: black 2.25pt double; line-height: 115%"> </td>
<td style="border-bottom: black 2.25pt double; line-height: 115%">$</td>
<td style="border-bottom: black 2.25pt double; line-height: 115%; text-align: right">4,242</td>
<td style="border-bottom: black 2.25pt double; line-height: 115%"> </td>
<td style="border-bottom: black 2.25pt double; line-height: 115%"> </td>
<td style="border-bottom: black 2.25pt double; line-height: 115%">$</td>
<td style="border-bottom: black 2.25pt double; line-height: 115%; text-align: right">4,580</td>
<td style="border-bottom: black 2.25pt double; line-height: 115%"> </td></tr>
</table>
<p style="margin: 0pt"></p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0"><b>5. Borrowings </b></p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"><i> </i></p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"><i><u>Affiliate Loans</u></i></p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">In December of 2011, the Company entered
into two secured revolving lines of credit with affiliates, both of whom are members.</p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">Summary of Affiliate Loan borrowings:</p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<table cellspacing="0" cellpadding="0" style="font: 8pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<tr style="vertical-align: bottom">
<td style="border-bottom: black 1pt solid; line-height: 115%; font-weight: bold; text-align: justify"> </td>
<td style="border-bottom: black 1pt solid; line-height: 115%; font-weight: bold"> </td>
<td colspan="2" style="border-bottom: black 1pt solid; line-height: 115%; font-weight: bold; text-align: center">September 30, 2012</td>
<td style="border-bottom: black 1pt solid; line-height: 115%; font-weight: bold"> </td>
<td style="border-bottom: black 1pt solid; line-height: 115%; font-weight: bold"> </td>
<td colspan="2" style="border-bottom: black 1pt solid; line-height: 115%; font-weight: bold; text-align: center">December 31, 2011</td>
<td style="border-bottom: black 1pt solid; line-height: 115%; font-weight: bold"> </td></tr>
<tr style="vertical-align: bottom">
<td style="line-height: 115%; font-weight: bold; text-align: justify"> </td>
<td style="line-height: 115%; font-weight: bold"> </td>
<td style="line-height: 115%; font-weight: bold"> </td>
<td style="line-height: 115%; font-weight: bold; text-align: right"> </td>
<td style="line-height: 115%; font-weight: bold"> </td>
<td style="line-height: 115%; font-weight: bold"> </td>
<td style="line-height: 115%; font-weight: bold"> </td>
<td style="line-height: 115%; font-weight: bold; text-align: right"> </td>
<td style="line-height: 115%; font-weight: bold"> </td></tr>
<tr style="vertical-align: bottom; background-color: #EEEEEE">
<td style="width: 58%; line-height: 115%">Maximum line of credit allowable amount</td>
<td style="width: 2%; line-height: 115%"> </td>
<td style="width: 1%; line-height: 115%">$</td>
<td style="width: 17%; line-height: 115%; text-align: right">1,500</td>
<td style="width: 1%; line-height: 115%"> </td>
<td style="width: 2%; line-height: 115%"> </td>
<td style="width: 1%; line-height: 115%">$</td>
<td style="width: 17%; line-height: 115%; text-align: right">1,500</td>
<td style="width: 1%; line-height: 115%"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="border-bottom: black 1pt solid; line-height: 115%">Less:  Outstanding balance</td>
<td style="border-bottom: black 1pt solid; line-height: 115%"> </td>
<td style="border-bottom: black 1pt solid; line-height: 115%"> </td>
<td style="border-bottom: black 1pt solid; line-height: 115%; text-align: right">1,015</td>
<td style="border-bottom: black 1pt solid; line-height: 115%"> </td>
<td style="border-bottom: black 1pt solid; line-height: 115%"> </td>
<td style="border-bottom: black 1pt solid; line-height: 115%"> </td>
<td style="border-bottom: black 1pt solid; line-height: 115%; text-align: right">878</td>
<td style="border-bottom: black 1pt solid; line-height: 115%"> </td></tr>
<tr style="vertical-align: bottom; background-color: #EEEEEE">
<td style="line-height: 115%; text-align: justify"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%; text-align: right"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%; text-align: right"> </td>
<td style="line-height: 115%"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="border-bottom: black 2.25pt double; line-height: 115%; text-align: justify">Available liquidity from affiliate loans</td>
<td style="border-bottom: black 2.25pt double; line-height: 115%"> </td>
<td style="border-bottom: black 2.25pt double; line-height: 115%">$</td>
<td style="border-bottom: black 2.25pt double; line-height: 115%; text-align: right">485</td>
<td style="border-bottom: black 2.25pt double; line-height: 115%"> </td>
<td style="border-bottom: black 2.25pt double; line-height: 115%"> </td>
<td style="border-bottom: black 2.25pt double; line-height: 115%">$</td>
<td style="border-bottom: black 2.25pt double; line-height: 115%; text-align: right">622</td>
<td style="border-bottom: black 2.25pt double; line-height: 115%"> </td></tr>
<tr style="vertical-align: bottom; background-color: #EEEEEE">
<td style="line-height: 115%; text-align: justify"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%; text-align: right"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%; text-align: right"> </td>
<td style="line-height: 115%"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="line-height: 115%; text-align: justify">Interest rate (affiliates’ cost of funds)</td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%; text-align: right">3.88%</td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%; text-align: right">3.73%</td>
<td style="line-height: 115%"> </td></tr>
</table>
<p style="margin: 0pt"></p>
<p style="margin: 0pt"></p>
<table cellspacing="0" cellpadding="0" style="font: 8pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<tr style="vertical-align: bottom">
<td style="border-bottom: black 1pt solid; line-height: 115%; font-weight: bold; text-align: justify"> </td>
<td style="border-bottom: black 1pt solid; line-height: 115%; font-weight: bold"> </td>
<td colspan="2" style="border-bottom: black 1pt solid; line-height: 115%; font-weight: bold; text-align: center">September 30, 2012</td>
<td style="border-bottom: black 1pt solid; line-height: 115%; font-weight: bold"> </td>
<td style="border-bottom: black 1pt solid; line-height: 115%; font-weight: bold"> </td>
<td colspan="2" style="border-bottom: black 1pt solid; line-height: 115%; font-weight: bold; text-align: center">December 31, 2011</td>
<td style="border-bottom: black 1pt solid; line-height: 115%; font-weight: bold"> </td></tr>
<tr style="vertical-align: bottom">
<td style="line-height: 115%; font-weight: bold; text-align: justify"> </td>
<td style="line-height: 115%; font-weight: bold"> </td>
<td style="line-height: 115%; font-weight: bold"> </td>
<td style="line-height: 115%; font-weight: bold; text-align: right"> </td>
<td style="line-height: 115%; font-weight: bold"> </td>
<td style="line-height: 115%; font-weight: bold"> </td>
<td style="line-height: 115%; font-weight: bold"> </td>
<td style="line-height: 115%; font-weight: bold; text-align: right"> </td>
<td style="line-height: 115%; font-weight: bold"> </td></tr>
<tr style="vertical-align: bottom; background-color: #EEEEEE">
<td style="width: 58%; line-height: 115%">Maximum line of credit allowable amount</td>
<td style="width: 2%; line-height: 115%"> </td>
<td style="width: 1%; line-height: 115%">$</td>
<td style="width: 17%; line-height: 115%; text-align: right">1,500</td>
<td style="width: 1%; line-height: 115%"> </td>
<td style="width: 2%; line-height: 115%"> </td>
<td style="width: 1%; line-height: 115%">$</td>
<td style="width: 17%; line-height: 115%; text-align: right">1,500</td>
<td style="width: 1%; line-height: 115%"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="border-bottom: black 1pt solid; line-height: 115%">Less:  Outstanding balance</td>
<td style="border-bottom: black 1pt solid; line-height: 115%"> </td>
<td style="border-bottom: black 1pt solid; line-height: 115%"> </td>
<td style="border-bottom: black 1pt solid; line-height: 115%; text-align: right">1,015</td>
<td style="border-bottom: black 1pt solid; line-height: 115%"> </td>
<td style="border-bottom: black 1pt solid; line-height: 115%"> </td>
<td style="border-bottom: black 1pt solid; line-height: 115%"> </td>
<td style="border-bottom: black 1pt solid; line-height: 115%; text-align: right">878</td>
<td style="border-bottom: black 1pt solid; line-height: 115%"> </td></tr>
<tr style="vertical-align: bottom; background-color: #EEEEEE">
<td style="line-height: 115%; text-align: justify"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%; text-align: right"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%; text-align: right"> </td>
<td style="line-height: 115%"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="border-bottom: black 2.25pt double; line-height: 115%; text-align: justify">Available liquidity from affiliate loans</td>
<td style="border-bottom: black 2.25pt double; line-height: 115%"> </td>
<td style="border-bottom: black 2.25pt double; line-height: 115%">$</td>
<td style="border-bottom: black 2.25pt double; line-height: 115%; text-align: right">485</td>
<td style="border-bottom: black 2.25pt double; line-height: 115%"> </td>
<td style="border-bottom: black 2.25pt double; line-height: 115%"> </td>
<td style="border-bottom: black 2.25pt double; line-height: 115%">$</td>
<td style="border-bottom: black 2.25pt double; line-height: 115%; text-align: right">622</td>
<td style="border-bottom: black 2.25pt double; line-height: 115%"> </td></tr>
<tr style="vertical-align: bottom; background-color: #EEEEEE">
<td style="line-height: 115%; text-align: justify"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%; text-align: right"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%; text-align: right"> </td>
<td style="line-height: 115%"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="line-height: 115%; text-align: justify">Interest rate (affiliates’ cost of funds)</td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%; text-align: right">3.88%</td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%; text-align: right">3.73%</td>
<td style="line-height: 115%"> </td></tr>
</table>
<p style="margin: 0pt"></p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0"><b>6. Members’ Capital </b></p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">The capital structure of the Company
was changed with the adoption of the new operating agreement as of March 29, 2012. Under the new capital structure, there is currently
one share class (class A common units) with two members. All members have voting rights in proportion to their capital account.
There were 2,629 A Common units outstanding at September 30, 2012. There are two additional authorized share classes: class A preferred
units and class B profit units. Once class B profit units are issued, the existing class A common units will become class A preferred
units. Class A preferred units will receive preferred treatment in terms of distributions and liquidation proceeds.</p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">The former capital structure of the Company
included three unit classes, A units, B units, and a voting member. <font style="color: black">The former ownership classes had
varying rights and privileges, primarily relating to amount and order of distributions, as well as varying allocations of profit
and losses, as defined by the former operating agreement.<b> </b>At December 31, 2011, there were 878 A units, 9,198 B units, and
1 voting unit outstanding.</font></p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"><b> </b></p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0">The members’ capital balances by class are as follows:</p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0"> </p>
<table cellspacing="0" cellpadding="0" style="font: 8pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<tr style="vertical-align: bottom">
<td style="border-bottom: black 1pt solid; line-height: 115%; font-weight: bold">Class</td>
<td style="border-bottom: black 1pt solid; line-height: 115%; font-weight: bold"> </td>
<td colspan="2" style="border-bottom: black 1pt solid; line-height: 115%; font-weight: bold; text-align: center">September 30, 2012</td>
<td style="border-bottom: black 1pt solid; line-height: 115%; font-weight: bold"> </td>
<td style="border-bottom: black 1pt solid; line-height: 115%; font-weight: bold"> </td>
<td colspan="2" style="border-bottom: black 1pt solid; line-height: 115%; font-weight: bold; text-align: center">December 31, 2011</td>
<td style="border-bottom: black 1pt solid; line-height: 115%; font-weight: bold"> </td></tr>
<tr style="vertical-align: bottom; background-color: #EEEEEE">
<td style="width: 58%; line-height: 115%">A Common Units</td>
<td style="width: 2%; line-height: 115%"> </td>
<td style="width: 1%; line-height: 115%">$</td>
<td style="width: 17%; line-height: 115%; text-align: right">1,897</td>
<td style="width: 1%; line-height: 115%"> </td>
<td style="width: 2%; line-height: 115%"> </td>
<td style="width: 1%; line-height: 115%">$</td>
<td style="width: 17%; line-height: 115%; text-align: right">–</td>
<td style="width: 1%; line-height: 115%"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="line-height: 115%">A Units</td>
<td style="line-height: 115%; font-weight: bold"> </td>
<td style="line-height: 115%; font-weight: bold"> </td>
<td style="line-height: 115%; font-weight: bold; text-align: right">–</td>
<td style="line-height: 115%; font-weight: bold"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%; text-align: right">451</td>
<td style="line-height: 115%"> </td></tr>
<tr style="vertical-align: bottom; background-color: #EEEEEE">
<td style="line-height: 115%">B Units</td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%; text-align: right">–</td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%; text-align: right">1,378</td>
<td style="line-height: 115%"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="border-bottom: black 1pt solid; line-height: 115%; font-weight: bold">Voting Member</td>
<td style="border-bottom: black 1pt solid; line-height: 115%"> </td>
<td style="border-bottom: black 1pt solid; line-height: 115%"> </td>
<td style="border-bottom: black 1pt solid; line-height: 115%; text-align: right">–</td>
<td style="border-bottom: black 1pt solid; line-height: 115%"> </td>
<td style="border-bottom: black 1pt solid; line-height: 115%"> </td>
<td style="border-bottom: black 1pt solid; line-height: 115%"> </td>
<td style="border-bottom: black 1pt solid; line-height: 115%; text-align: right">1</td>
<td style="border-bottom: black 1pt solid; line-height: 115%"> </td></tr>
<tr style="vertical-align: bottom; background-color: #EEEEEE">
<td style="line-height: 115%; text-align: justify"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%; text-align: right"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%; text-align: right"> </td>
<td style="line-height: 115%"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="border-bottom: black 2.25pt double; line-height: 115%; font-weight: bold">Members’ Capital</td>
<td style="border-bottom: black 2.25pt double; line-height: 115%"> </td>
<td style="border-bottom: black 2.25pt double; line-height: 115%">$</td>
<td style="border-bottom: black 2.25pt double; line-height: 115%; text-align: right">1,897</td>
<td style="border-bottom: black 2.25pt double; line-height: 115%"> </td>
<td style="border-bottom: black 2.25pt double; line-height: 115%"> </td>
<td style="border-bottom: black 2.25pt double; line-height: 115%">$</td>
<td style="border-bottom: black 2.25pt double; line-height: 115%; text-align: right">1,830</td>
<td style="border-bottom: black 2.25pt double; line-height: 115%"> </td></tr>
</table>
<p style="margin: 0pt"></p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0"></p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0"><b>7. Related Party Transactions</b></p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0"><b> </b></p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">The accompanying interim condensed consolidated
financial statements have been prepared from the separate accounts maintained by the Company and may not be indicative of the conditions
that would have existed or the results of operations that would have occurred had the Company not entered into certain related
party transactions or not participated in certain transactions with its members.</p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0"><b> </b></p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0"><b>84 Lumber Company</b></p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0"><b> </b></p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">The direct financing, commercial real
estate leases created in 2007 and described in Note 8 were with an affiliate of 84 Lumber Company. At the time, 84 Lumber Company
employed Daniel M. Wallach as its Chief Financial Officer and was therefore considered a related party. Those leases have been
terminated and settled. The Company currently has no affiliation with 84 Lumber Company or its affiliates.</p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"><b>Notes and Accounts Payable to Affiliates</b></p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"><b> </b></p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">In December of 2011, the Company entered
into a loan agreement with two of our affiliates, as more fully described in Note 5 – <i>Borrowings.</i></p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">In December of 2011, the Company entered
into a loan agreement with the Hoskins Group, as more fully described in Note 4 – <i>Financing Receivables</i>.</p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0"></p>
<p style="margin: 0pt"></p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"><b>8. Discontinued Operations</b></p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">In accordance with the provisions of
ASC Subtopic 205-20, <i>Discontinued Operations</i>, management of the Company determined that its commercial real estate leases
created in 2007 and terminated in 2011, which were accounted for as direct finance leases, met the definition of a component of
the Company. Therefore, management determined that leasing operations should be presented as discontinued operations.</p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"><b> </b></p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">For the first nine months of 2012 and
2011, the income (loss) from discontinued operations consisted of the following:</p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<table cellspacing="0" cellpadding="0" style="font: 8pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<tr style="vertical-align: bottom">
<td style="border-bottom: black 1pt solid; line-height: 115%; text-align: justify"> </td>
<td style="border-bottom: black 1pt solid; line-height: 115%; font-weight: bold"> </td>
<td style="border-bottom: black 1pt solid; line-height: 115%; font-weight: bold"> </td>
<td style="border-bottom: black 1pt solid; line-height: 115%; font-weight: bold; text-align: center">2012</td>
<td style="border-bottom: black 1pt solid; line-height: 115%; font-weight: bold"> </td>
<td style="border-bottom: black 1pt solid; line-height: 115%; font-weight: bold"> </td>
<td style="border-bottom: black 1pt solid; line-height: 115%; font-weight: bold"> </td>
<td style="border-bottom: black 1pt solid; line-height: 115%; font-weight: bold; text-align: center">2011</td>
<td style="border-bottom: black 1pt solid; line-height: 115%; font-weight: bold"> </td></tr>
<tr style="vertical-align: bottom">
<td style="line-height: 115%; font-weight: bold; text-align: justify"> </td>
<td style="line-height: 115%; font-weight: bold"> </td>
<td style="line-height: 115%; font-weight: bold"> </td>
<td style="line-height: 115%; font-weight: bold; text-align: right"> </td>
<td style="line-height: 115%; font-weight: bold"> </td>
<td style="line-height: 115%; font-weight: bold"> </td>
<td style="line-height: 115%; font-weight: bold"> </td>
<td style="line-height: 115%; font-weight: bold; text-align: right"> </td>
<td style="line-height: 115%; font-weight: bold"> </td></tr>
<tr style="vertical-align: bottom; background-color: #EEEEEE">
<td style="width: 64%; border-bottom: black 1pt solid; line-height: 115%; text-align: justify">Interest income on direct financing leases</td>
<td style="width: 2%; border-bottom: black 1pt solid; line-height: 115%"> </td>
<td style="width: 1%; border-bottom: black 1pt solid; line-height: 115%">$</td>
<td style="width: 14%; border-bottom: black 1pt solid; line-height: 115%; text-align: right">–</td>
<td style="width: 1%; border-bottom: black 1pt solid; line-height: 115%"> </td>
<td style="width: 2%; border-bottom: black 1pt solid; line-height: 115%"> </td>
<td style="width: 1%; border-bottom: black 1pt solid; line-height: 115%">$</td>
<td style="width: 14%; border-bottom: black 1pt solid; line-height: 115%; text-align: right">638</td>
<td style="width: 1%; border-bottom: black 1pt solid; line-height: 115%"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="line-height: 115%; text-align: justify"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%; text-align: right"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%; text-align: right"> </td>
<td style="line-height: 115%"> </td></tr>
<tr style="vertical-align: bottom; background-color: #EEEEEE">
<td style="line-height: 115%; text-align: justify">Selling, general and administrative expenses</td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%; text-align: right">–</td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%; text-align: right">69</td>
<td style="line-height: 115%"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="border-bottom: black 1pt solid; line-height: 115%; text-align: justify">Interest expense</td>
<td style="border-bottom: black 1pt solid; line-height: 115%"> </td>
<td style="border-bottom: black 1pt solid; line-height: 115%"> </td>
<td style="border-bottom: black 1pt solid; line-height: 115%; text-align: right">–</td>
<td style="border-bottom: black 1pt solid; line-height: 115%"> </td>
<td style="border-bottom: black 1pt solid; line-height: 115%"> </td>
<td style="border-bottom: black 1pt solid; line-height: 115%"> </td>
<td style="border-bottom: black 1pt solid; line-height: 115%; text-align: right">260</td>
<td style="border-bottom: black 1pt solid; line-height: 115%"> </td></tr>
<tr style="vertical-align: bottom; background-color: #EEEEEE">
<td style="line-height: 115%; text-align: justify"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%; text-align: right"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%; text-align: right"> </td>
<td style="line-height: 115%"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="border-bottom: black 2.25pt double; line-height: 115%; font-weight: bold">Income from discontinued operations</td>
<td style="border-bottom: black 2.25pt double; line-height: 115%"> </td>
<td style="border-bottom: black 2.25pt double; line-height: 115%">$</td>
<td style="border-bottom: black 2.25pt double; line-height: 115%; text-align: right">–</td>
<td style="border-bottom: black 2.25pt double; line-height: 115%"> </td>
<td style="border-bottom: black 2.25pt double; line-height: 115%"> </td>
<td style="border-bottom: black 2.25pt double; line-height: 115%">$</td>
<td style="border-bottom: black 2.25pt double; line-height: 115%; text-align: right">309</td>
<td style="border-bottom: black 2.25pt double; line-height: 115%"> </td></tr>
</table>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">At September 30, 2012 and December 31,
2011, there were no assets or liabilities associated with the discontinued leases and their related borrowings reflected in the
accompanying condensed consolidated balance sheets.</p>
<p style="margin: 0pt"></p>
<table cellspacing="0" cellpadding="0" style="font: 8pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<tr style="vertical-align: bottom">
<td style="border-bottom: black 1pt solid; line-height: 115%; text-align: justify"> </td>
<td style="border-bottom: black 1pt solid; line-height: 115%; font-weight: bold"> </td>
<td style="border-bottom: black 1pt solid; line-height: 115%; font-weight: bold"> </td>
<td style="border-bottom: black 1pt solid; line-height: 115%; font-weight: bold; text-align: center">2012</td>
<td style="border-bottom: black 1pt solid; line-height: 115%; font-weight: bold"> </td>
<td style="border-bottom: black 1pt solid; line-height: 115%; font-weight: bold"> </td>
<td style="border-bottom: black 1pt solid; line-height: 115%; font-weight: bold"> </td>
<td style="border-bottom: black 1pt solid; line-height: 115%; font-weight: bold; text-align: center">2011</td>
<td style="border-bottom: black 1pt solid; line-height: 115%; font-weight: bold"> </td></tr>
<tr style="vertical-align: bottom">
<td style="line-height: 115%; font-weight: bold; text-align: justify"> </td>
<td style="line-height: 115%; font-weight: bold"> </td>
<td style="line-height: 115%; font-weight: bold"> </td>
<td style="line-height: 115%; font-weight: bold; text-align: right"> </td>
<td style="line-height: 115%; font-weight: bold"> </td>
<td style="line-height: 115%; font-weight: bold"> </td>
<td style="line-height: 115%; font-weight: bold"> </td>
<td style="line-height: 115%; font-weight: bold; text-align: right"> </td>
<td style="line-height: 115%; font-weight: bold"> </td></tr>
<tr style="vertical-align: bottom; background-color: #EEEEEE">
<td style="width: 64%; border-bottom: black 1pt solid; line-height: 115%; text-align: justify">Interest income on direct financing leases</td>
<td style="width: 2%; border-bottom: black 1pt solid; line-height: 115%"> </td>
<td style="width: 1%; border-bottom: black 1pt solid; line-height: 115%">$</td>
<td style="width: 14%; border-bottom: black 1pt solid; line-height: 115%; text-align: right">–</td>
<td style="width: 1%; border-bottom: black 1pt solid; line-height: 115%"> </td>
<td style="width: 2%; border-bottom: black 1pt solid; line-height: 115%"> </td>
<td style="width: 1%; border-bottom: black 1pt solid; line-height: 115%">$</td>
<td style="width: 14%; border-bottom: black 1pt solid; line-height: 115%; text-align: right">638</td>
<td style="width: 1%; border-bottom: black 1pt solid; line-height: 115%"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="line-height: 115%; text-align: justify"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%; text-align: right"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%; text-align: right"> </td>
<td style="line-height: 115%"> </td></tr>
<tr style="vertical-align: bottom; background-color: #EEEEEE">
<td style="line-height: 115%; text-align: justify">Selling, general and administrative expenses</td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%; text-align: right">–</td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%; text-align: right">69</td>
<td style="line-height: 115%"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="border-bottom: black 1pt solid; line-height: 115%; text-align: justify">Interest expense</td>
<td style="border-bottom: black 1pt solid; line-height: 115%"> </td>
<td style="border-bottom: black 1pt solid; line-height: 115%"> </td>
<td style="border-bottom: black 1pt solid; line-height: 115%; text-align: right">–</td>
<td style="border-bottom: black 1pt solid; line-height: 115%"> </td>
<td style="border-bottom: black 1pt solid; line-height: 115%"> </td>
<td style="border-bottom: black 1pt solid; line-height: 115%"> </td>
<td style="border-bottom: black 1pt solid; line-height: 115%; text-align: right">260</td>
<td style="border-bottom: black 1pt solid; line-height: 115%"> </td></tr>
<tr style="vertical-align: bottom; background-color: #EEEEEE">
<td style="line-height: 115%; text-align: justify"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%; text-align: right"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%; text-align: right"> </td>
<td style="line-height: 115%"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="border-bottom: black 2.25pt double; line-height: 115%; font-weight: bold">Income from discontinued operations</td>
<td style="border-bottom: black 2.25pt double; line-height: 115%"> </td>
<td style="border-bottom: black 2.25pt double; line-height: 115%">$</td>
<td style="border-bottom: black 2.25pt double; line-height: 115%; text-align: right">–</td>
<td style="border-bottom: black 2.25pt double; line-height: 115%"> </td>
<td style="border-bottom: black 2.25pt double; line-height: 115%"> </td>
<td style="border-bottom: black 2.25pt double; line-height: 115%">$</td>
<td style="border-bottom: black 2.25pt double; line-height: 115%; text-align: right">309</td>
<td style="border-bottom: black 2.25pt double; line-height: 115%"> </td></tr>
</table>
<p style="margin: 0pt"></p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"><b>9. Commitments and Contingencies</b></p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">In the normal course of business there
may be outstanding commitments to extend credit that are not included in the consolidated financial statements. Commitments
to extend credit are agreements to lend to a customer as long as there is no violation of any condition established in the contract.
Commitments generally have fixed expiration dates or other termination clauses and may require payment of a fee. Since many of
the commitments are expected to expire without being drawn upon and some of the funding may come from the earlier repayment of
the same loan (in the case of revolving lines), the total commitment amounts do not necessarily represent future cash requirements.
The financial instruments involve, to varying degrees, elements of credit and interest rate risk in excess of amounts recognized
in the consolidated financial statements. The Company evaluates each customer’s creditworthiness on a case-by-case basis.
Unfunded commitments to extend credit were approximately $100 and $296 at September 30, 2012 and December 31, 2011, respectively.</p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">The Company is involved in various claims
and lawsuits arising in the normal course of business. Management believes that any financial responsibility that may be incurred
in settlement of such claims and lawsuits would not be material to the Company’s consolidated financial position, results
of operations or cash flows.</p>
<p style="margin: 0pt"></p>
<p style="margin: 0pt"></p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"><b>10. Income Taxes</b></p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"><b> </b></p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">The entities included in the condensed
consolidated financial statements are organized as pass-through entities under the Internal Revenue Code. As such, taxes are the
responsibility of the members. The State of Pennsylvania charges a tax based on loan assets. This tax has been recorded on an accrual
basis.</p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">The Company applies ASC Topic 740, <i>Income
Taxes</i> (“ASC 740”). ASC 740 provides guidance for how uncertain tax positions should be recognized, measured, presented
and disclosed in the consolidated financial statements and requires the evaluation of tax positions taken or expected to be taken
in the course of preparing the Company’s consolidated financial statements to determine whether the tax positions are “more-likely-than-not”
to be sustained by the applicable tax authority. Tax positions with respect to income tax at the LLC level not deemed to meet the
“more-likely-than-not” threshold would be recorded as a tax benefit or expense in the appropriate period. Management
concluded that there are no uncertain tax positions that should be recognized in the consolidated financial statements. With few
exceptions, the Company is no longer subject to income tax examinations for years prior to 2008.</p>
<p style="margin: 0pt"></p>
<p style="margin: 0pt"></p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"><b>11. Subsequent Events</b></p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"><b> </b></p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">Management of the Company has evaluated
subsequent events through November 13, 2012, the date these interim condensed consolidated financial statements were issued.</p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">The Company’s public debt offering
became effective with the SEC, 27 states, and the District of Columbia on October 4, 2012. We became effective in another 6 states
subsequent to October 4, 2012 and prior to November 13, 2012. We are currently effective in the following states: Alaska, Arizona,
California, Colorado, Connecticut, Delaware, District of Columbia, Georgia, Hawaii, Idaho, Illinois, Indiana, Iowa, Kansas, Louisiana,
Michigan, Minnesota, Mississippi, Missouri, Montana, Nevada, New Hampshire, Oregon, Pennsylvania, Rhode Island, South Carolina,
South Dakota, Utah, Vermont, Virginia, West Virginia, Wisconsin, and Wyoming. Under the public debt offering, the Company has
issued 0 in debt after September 30, 2012 through November 13, 2012.</p>
<p style="margin: 0pt"></p>
100000
0
9000
956000
2515000
.1118
.1181
0
0
100000
296000
878
9198
1
324000
450000
1500000
1500000
1015000
878000
142000
0
444000
0
112000
0
358000
0
-166000
0
-126000
0
0
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"><b>Revenue Recognition</b></p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"><b> </b></p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">Interest income generally is recognized
on an accrual basis. The accrual of interest is generally discontinued on all loans past due 90 days or more. All interest accrued
but not collected for loans that are placed on nonaccrual or charged off is reversed against interest income, unless management
believes that the accrued interest is recoverable through liquidation of collateral. Interest received on nonaccrual loans is applied
against principal. Interest on accruing impaired loans is recognized as long as such loans do not meet the criteria for nonaccrual
status.</p>
<p style="margin: 0pt"></p>
<p style="margin: 0pt"></p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"><b>2. Summary of Significant Accounting
Policies</b></p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"><b> </b></p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"><b>Segment Reporting</b></p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">We report all ongoing operations in one
segment, commercial lending.</p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"><b>Use of Estimates</b></p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">Timely preparation of financial statements
in accordance with the rules and regulations of the SEC require management to make estimates that affect the reported amounts of
assets and liabilities at the date of the financial statements, as well as the reported amounts of income and expenses during the
reporting periods. Actual results could differ from those estimates.</p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"><b> </b></p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"><b>Revenue Recognition</b></p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"><b> </b></p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">Interest income generally is recognized
on an accrual basis. The accrual of interest is generally discontinued on all loans past due 90 days or more. All interest accrued
but not collected for loans that are placed on nonaccrual or charged off is reversed against interest income, unless management
believes that the accrued interest is recoverable through liquidation of collateral. Interest received on nonaccrual loans is applied
against principal. Interest on accruing impaired loans is recognized as long as such loans do not meet the criteria for nonaccrual
status.</p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"><b> </b></p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"><b>Loans Receivable</b></p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"><b> </b></p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">Loans are stated at the amount of unpaid
principal, net of any allowances for loan losses, and adjusted for the net amount of direct costs and nonrefundable loan fees associated
with lending. The net amount of nonrefundable loan origination fees and direct costs associated with the lending process, including
commitment fees, is deferred and accreted to interest income over the lives of the loans using a method that approximates the interest
method. Substantially all of the Company’s loans are secured by real estate, currently all in a suburb of Pittsburgh, Pennsylvania.
Accordingly, the ultimate collectability of a substantial portion of these loans is susceptible to changes in market conditions
in that area.</p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">Past due loans are loans contractually
past due 30 days or more as to principal or interest payments. A loan is classified as nonaccrual, and the accrual of interest
on such loan is discontinued, when the contractual payment of principal or interest becomes 90 days past due. In addition, a loan
may be placed on nonaccrual at any other time management has serious doubts about further collectability of principal or interest
according to the contractual terms, even though the loan is currently performing. A loan may remain on accrual status if it is
in the process of collection or well-secured (i.e. the loan has sufficient collateral value). Loans are restored to accrual status
when the obligation is brought current or has performed in accordance with the contractual terms for a reasonable period of time
and the ultimate collectability of the total contractual principal and interest is no longer in doubt.</p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">A loan is considered impaired when, based
on current information and events, it is probable that the Company will be unable to collect the scheduled payments of principal
or interest when due according to the contractual terms of the loan agreement. Impaired loans, or portions thereof, are charged
off when deemed uncollectible. Once a loan is 90 days past due, management begins a workout plan with the borrower or commences
its foreclosure process on the collateral.</p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"><b>Allowance for Loan Losses</b></p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"><b> </b></p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">The allowance for loan losses, when determined
to be necessary, is maintained at a level believed adequate by management to absorb probable losses inherent in the loan portfolio.</p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">For loans to one borrower with committed
balances less than 10% of our total committed balances on all loans extended to all customers, we analyze for impairment all loans
which are more than 60 days past due at the end of a quarter.  For loans to one borrower with committed balances equal to
or greater than 10% of our total committed balances on all loans extended to all customers, we analyze all loans for impairment. 
The analysis of loans, if required, develops a collateral value to be compared to the principal amount of the loan.  If the
value determined is less than the principal amount due (less any builder deposit), then the difference is included in the loan
loss.  As values change, estimated loan losses may be provided for more or less than the previous period, and some loans do
not need a loss provision based on payment history.  For homes which are partially complete, we appraise on an as-is and completed
basis, and use the one that more closely aligns with our planned method of disposal for the property.</p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">All loans that are individually evaluated
for impairment have an appraisal within the last 13 months.  There also is a broker’s opinion of value (“BOV”)
prepared, if the appraisal is more than six months old.  The lower of any BOV prepared in the last six months, or appraisal
in the last 13 months will be used, unless we determine a BOV to be invalid based on the comparable sales used.  If we determine
a BOV to be invalid, we use the appraised value.  <font style="color: black">Appraised values are adjusted down for costs
associated with asset disposal.</font></p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0"> </p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0"><b>Recent Accounting Pronouncements</b></p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"><b> </b></p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">In December 2011, the FASB issued ASU
2011-11, <i>Disclosures about Offsetting Assets and Liabilities</i> which creates new disclosure requirements about the nature
of an entity’s rights of setoff and related arrangements associated with its financial instruments and derivative instruments.
The disclosures will be limited to financial instruments and derivatives subject to enforceable master netting arrangements or
similar agreements and excludes loans unless they are netted in the statement of financial condition. The amendments will affect
all entities that have financial instruments and derivatives that are either offset in the balance sheet or subject to an enforceable
master netting arrangement or similar agreement regardless of whether they are offset in the balance sheet. The ASU will require
entities to disclose, separately for financial assets and liabilities, including derivatives, the gross amounts of recognized financial
assets and liabilities; the amounts offset under current U.S. GAAP; the net amounts presented in the balance sheet; the amounts
subject to an enforceable master netting arrangement or similar agreement that were not included in the offset amount above, and
the reconciling amount. The disclosure requirements are effective for annual and interim reporting periods beginning on or after
January 1, 2013, with retrospective application required. The Company is evaluating the impact of this amendment.</p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">In May 2011, the FASB issued ASU No.
2011-04, Fair Value Measurement (Topic 820): <i>Amendments to Achieve Common Fair Value Measurement and Disclosure Requirements
in U.S. GAAP and IFRS</i>, to provide a consistent definition of fair value and ensure that the fair value measurement and disclosure
requirements are similar between U.S. GAAP and IFRS. ASU 2011-04 changes certain fair value measurement principles and enhances
the disclosure requirements particularly for Level 3 fair value measurements. <font style="color: black">The most significant change
will require entities, for their recurring Level 3 fair value measurements, to disclose quantitative information about unobservable
inputs used, a description of the valuation processes used by the entity, and a qualitative discussion about the sensitivity of
the measurements. New disclosures are required about the use of a nonfinancial asset measured or disclosed at fair value if its
use differs from its highest and best use. In addition, entities must report the level in the fair value hierarchy of assets and
liabilities not recorded at fair value but where fair value is disclosed. The amendment was effective for annual and interim reporting
periods which began after December 15, 2011. The adoption of this guidance had no effect on the amounts presented in the Company’s
consolidated financial statements or notes to the consolidated financial statements, as the Company currently has no assets measured
at fair value on a recurring or nonrecurring basis. See Note 3.</font></p>
<p style="margin: 0pt"></p>
<p style="margin: 0pt"></p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"><b>3. Fair Value </b></p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"><b> </b></p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">The Company has established a framework
for measuring fair value under U.S. GAAP using a hierarchy, which requires the Company to maximize the use of observable inputs
and minimize the use of unobservable inputs. Fair value measurements are an exit price, representing the amount that would be received
to sell an asset or paid to transfer a liability in an orderly transaction between market participants. Three levels of inputs
are used to measure fair value, as follows:</p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">Level 1 – quoted
prices in active markets for identical assets or liabilities;</p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"> </p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0 0 0 0.5in; text-align: justify">Level 2 – quoted prices
in active markets for similar assets and liabilities and inputs that are observable for the asset or liability; or</p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0 0 0 0.5in; text-align: justify"> </p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">Level 3 – unobservable
inputs, such as discounted cash flow models or valuations.</p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">The determination of where assets and
liabilities fall within this hierarchy is based upon the lowest level of input that is significant to the fair value measurement.</p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">At September 30, 2012 and December 31,
2011, the Company had no assets measured at fair value on a recurring or nonrecurring basis.</p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"> </p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">The following methods and assumptions
were used to estimate the fair value of each class of financial instruments under ASC Topic 825, for which it is practicable to
estimate the value:</p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"><b> </b></p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.25in"><b>Cash and Cash
Equivalents</b></p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.25in"><b> </b></p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0 0 0 0.25in; text-align: justify">The carrying amount approximates
fair value because of the short maturity of these instruments.</p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0"><b> </b></p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.25in"><b>Loans Receivable
</b></p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.25in"><b> </b></p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0 0 0 0.25in; text-align: justify">For variable rate loans that
reprice frequently with no significant change in credit risk, estimated fair values are based on carrying values <font style="color: black">at
September 30, 2012 and December 31, 2011.</font> The estimated fair values for other loans are <font style="color: black">estimated
by discounting the future cash flow using current rates at which similar loans would be made to borrowers with similar credit
ratings and the same remaining maturities and approximate carrying values of these instruments at September 30, 2012 and December
31, 2011.</font></p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.25in"><b> </b></p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.25in"><b>Borrowings under
Credit Facilities</b></p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.25in"><b> </b></p>
<p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0 0 0 0.25in; text-align: justify">The fair value of the Company’s
borrowings under credit facilities is estimated based on the expected cash flows discounted using the current rates offered to
the Company for the debt of the same remaining maturities. Based on the borrowing rates currently available to the Company for
bank loans with similar terms and maturities, the fair value of the Company’s notes approximates the carrying amounts of
the notes at September 30, 2012 and December 31, 2011.</p>
<p style="margin: 0pt"></p>
4242000
4580000
4242000
4580000
0.0388
0.0373
1897000
1830000
0
0
1897000
0
451000
1378000
0
1000
300000
4580000
-804000
166000
5100000
5800000
1500000
1500000
-1015000
-878000
485000
622000
0
638000
0
69000
0
260000
3022000
3568000
1822000
2368000
450000
450000
750000
750000
1978000
1936000
250000
250000
41000
1687000
1686000
1330000
1930000
1760000
1760000
1910000
1910000
-758000
-924000
1500000
1500000
<table cellspacing="0" cellpadding="0" style="font: 8pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<tr style="vertical-align: bottom">
<td style="border-bottom: black 1pt solid; line-height: 115%; font-weight: bold">Class</td>
<td style="border-bottom: black 1pt solid; line-height: 115%; font-weight: bold"> </td>
<td colspan="2" style="border-bottom: black 1pt solid; line-height: 115%; font-weight: bold; text-align: center">September 30, 2012</td>
<td style="border-bottom: black 1pt solid; line-height: 115%; font-weight: bold"> </td>
<td style="border-bottom: black 1pt solid; line-height: 115%; font-weight: bold"> </td>
<td colspan="2" style="border-bottom: black 1pt solid; line-height: 115%; font-weight: bold; text-align: center">December 31, 2011</td>
<td style="border-bottom: black 1pt solid; line-height: 115%; font-weight: bold"> </td></tr>
<tr style="vertical-align: bottom; background-color: #EEEEEE">
<td style="width: 58%; line-height: 115%">A Common Units</td>
<td style="width: 2%; line-height: 115%"> </td>
<td style="width: 1%; line-height: 115%">$</td>
<td style="width: 17%; line-height: 115%; text-align: right">1,897</td>
<td style="width: 1%; line-height: 115%"> </td>
<td style="width: 2%; line-height: 115%"> </td>
<td style="width: 1%; line-height: 115%">$</td>
<td style="width: 17%; line-height: 115%; text-align: right">–</td>
<td style="width: 1%; line-height: 115%"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="line-height: 115%">A Units</td>
<td style="line-height: 115%; font-weight: bold"> </td>
<td style="line-height: 115%; font-weight: bold"> </td>
<td style="line-height: 115%; font-weight: bold; text-align: right">–</td>
<td style="line-height: 115%; font-weight: bold"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%; text-align: right">451</td>
<td style="line-height: 115%"> </td></tr>
<tr style="vertical-align: bottom; background-color: #EEEEEE">
<td style="line-height: 115%">B Units</td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%; text-align: right">–</td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%; text-align: right">1,378</td>
<td style="line-height: 115%"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="border-bottom: black 1pt solid; line-height: 115%; font-weight: bold">Voting Member</td>
<td style="border-bottom: black 1pt solid; line-height: 115%"> </td>
<td style="border-bottom: black 1pt solid; line-height: 115%"> </td>
<td style="border-bottom: black 1pt solid; line-height: 115%; text-align: right">–</td>
<td style="border-bottom: black 1pt solid; line-height: 115%"> </td>
<td style="border-bottom: black 1pt solid; line-height: 115%"> </td>
<td style="border-bottom: black 1pt solid; line-height: 115%"> </td>
<td style="border-bottom: black 1pt solid; line-height: 115%; text-align: right">1</td>
<td style="border-bottom: black 1pt solid; line-height: 115%"> </td></tr>
<tr style="vertical-align: bottom; background-color: #EEEEEE">
<td style="line-height: 115%; text-align: justify"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%; text-align: right"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%; text-align: right"> </td>
<td style="line-height: 115%"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="border-bottom: black 2.25pt double; line-height: 115%; font-weight: bold">Members’ Capital</td>
<td style="border-bottom: black 2.25pt double; line-height: 115%"> </td>
<td style="border-bottom: black 2.25pt double; line-height: 115%">$</td>
<td style="border-bottom: black 2.25pt double; line-height: 115%; text-align: right">1,897</td>
<td style="border-bottom: black 2.25pt double; line-height: 115%"> </td>
<td style="border-bottom: black 2.25pt double; line-height: 115%"> </td>
<td style="border-bottom: black 2.25pt double; line-height: 115%">$</td>
<td style="border-bottom: black 2.25pt double; line-height: 115%; text-align: right">1,830</td>
<td style="border-bottom: black 2.25pt double; line-height: 115%"> </td></tr>
</table>
324000
450000