CSD 1152 [4/21/16] Name, Address, Telephone No. & I.D. No. UNITED STATES BANKRUPTCY COURT SOUTHERN DISTRICT OF CALIFORNIA 325 West "F" Street, San Diego, California 921016991 In Re Debtor, Bankruptcy No. [PROPOSED] INDIVIDUAL CHAPTER 11 COMBINED PLAN OF REORGANIZATION AND [APPROVED] [CONDITIONALLY APPROVED] DISCLOSURE STATEMENT [DATE] INTRODUCTION This is Debtor's Combined Chapter 11 Plan of Reorganization and Disclosure Statement (the Plan). The Plan describes how each creditor's claim will be treated if the Plan is confirmed. Section 1 contains the treatment of administrative claims. Section 2 contains the treatment of priority claims. Section 3 contains the treatment of creditors with secured claims. Section 4 contains the treatment of general unsecured creditors: [SELECT ONE OF THE FOLLOWING :( __% of their allowed claims) (a pro rata portion of $___, likely to result in a ___% recovery of allowed claims)] in [MONTHLY/QUARTERLY] payments over [(NUMBER) (MONTHS/YEARS)]. The creditors are divided into classes (as shown in the table below.) Secured creditors are in Class 1 and discussed in Section 3. Each secured creditor has its own subclass. Unsecured creditors are in Class 2 and discussed in Section 4. Class 1A 1B 2A 2B Name of Creditor [INSERT SECURED CREDITOR] [INSERT SECURED CREDITOR] Small Claims General Unsecured Claims CSD 1152 American LegalNet, Inc. www.FormsWorkFlow.com  Most creditors (those in impaired classes) are entitled to vote on confirmation of the Plan. Completed ballots must be received by Debtor's counsel, and objections to confirmation must be filed and served, no later than [DATE]. The Bankruptcy Court will hold a hearing on confirmation of the Plan on [DATE] at [TIME]. If there is any modification to the Plan, the Bankruptcy Court will determine whether it is a material modification and whether a further hearing, re-voting, or change of any deadline is required. Attached to the Plan are exhibits containing financial information that may help you decide how to vote and whether to object to confirmation. Exhibit 1 includes background information regarding Debtor, the events that led to the filing of the bankruptcy petition, a description of significant events that have occurred during this bankruptcy and a summary of this Chapter 11 Plan. Exhibit 2 contains an analysis of how much creditors would likely receive in a Chapter 7 liquidation. Exhibit 3 contains a summary of Debtor's post-petition Operating Reports. Exhibit 4 shows Debtor's projected post-confirmation monthly income and expenses. Exhibit 5 describes how much Debtor is required to pay on the Effective Date of the Plan. Exhibit 6 shows Debtor's monthly income and expenses related to each investment property. Whether the Plan is confirmed is subject to complex legal rules that cannot be fully described here. YOU ARE STRONGLY ENCOURAGED TO READ THE PLAN CAREFULLY AND TO CONSULT AN ATTORNEY TO HELP YOU DETERMINE HOW TO VOTE AND WHETHER TO OBJECT TO CONFIRMATION OF THE PLAN. If the Plan is confirmed, the payments promised in the Plan constitute new contractual obligations that replace the Debtor's pre-confirmation debts. The Plan payments shall begin on the Effective Date as defined in Section 8(a). Creditors may not seize their collateral or enforce their pre-confirmation debts so long as Debtor performs all obligations under the Plan. If Debtor defaults in performing Plan obligations, any creditor can file a motion to have the case dismissed or converted to a Chapter 7 liquidation, or enforce their nonbankruptcy rights. Debtor will be discharged from all pre-confirmation debts (with certain exceptions) if Debtor makes all Plan payments. Enforcement of the Plan, discharge of the Debtor, and creditors' remedies, if Debtor defaults, are described in detail in Sections 6 and 7 of the Plan. SECTION 1: TREATMENT OF ADMINISTRATIVE CLAIMS 1(a) Professional Fees. Debtor will pay the following professional fees in full on the Effective Date, or upon approval by the Bankruptcy Court, whichever is later. Name and Role of Professional Estimated Amount CSD 1152 American LegalNet, Inc. www.FormsWorkFlow.com  The following professionals have agreed to accept payment over time as follows. Payments will be made [MONTHLY/ QUARTERLY], due on the [NUMBER] day of the [MONTH/QUARTER], starting [MONTH & YEAR] or upon approval by the Bankruptcy Court, whichever is later. Name and Role of Professional Estimated Amount Payment Amount Number of Payments Estate professionals are not entitled to vote on confirmation of the Plan. 1(b) Post-Confirmation Compensation of Professional Persons. Compensation for services rendered and for reimbursement of expenses by a professional person after the Effective Date need not be approved by the Bankruptcy Court. Professional persons may invoice the reorganized Debtor (or other responsible third-party) directly, and the reorganized Debtor (or other responsible third-party) may pay such invoices without further order from the Bankruptcy Court. 1(c) Other Administrative Claims. Debtor will pay other allowed claims entitled to priority under 11 U.S.C. § 503(b) in full on the Effective Date; except expenses incurred in the ordinary course of Debtor's business or financial affairs, which must be paid when normally due and payable (these creditors are not listed below). Creditors holding administrative claims not listed in the table below must file an administrative claim within 30 days of notice of the Effective Date. Administrative claimants are not entitled to vote on confirmation of the Plan. Name of Administrative Creditor Estimated Amount of Claim 1(d) United States Trustee Fees. All fees payable to the United States Trustee as of confirmation will be paid on the Effective Date; post- confirmation fees to the United States Trustee will be paid when due. CSD 1152 American LegalNet, Inc. www.FormsWorkFlow.com  SECTION 2: TREATMENT OF PRIORITY CLAIMS Tax Claims. The Debtor will pay claims entitled to priority under § 507(a)(8) in full over time at the non-bankruptcy 2(a) statutory interest rate in equal amortized payments in accordance with § 511. Payments will be made quarterly, due on the first day of the quarter, starting on the first such date after the Effective Date and ending on the last such date that is no more than 5 years after the entry of the order for relief. Payment of priority tax claims in full within 5 years of the petition date and on terms not less favorable than tho