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io <br />Proposal for Real Estate Financing <br />Page 2 of 7 <br />COST OF ISSUANCE: The Lessee is responsible for all cost of issuance which <br />includes all usual and customary costs associated with closing <br />of similar facility. loan or lease transactions. These costs would <br />include, but will not be limited to, all legal costs incurred by <br />Lessor, and the costs associated with .the compiling and <br />providing the information and reports required by the Lessor. <br />AMOUNT FINANCED: $50,000,000.00 <br />Rate <br />Proposal <br />Lease Amount <br />lease <br />Term <br />lease <br />Rate <br />Payment Information <br />1 $50,000,000.00 20 4.10% 40,Semi annual payments of accrued interest <br /> years ~ starting December 30, 2007, and 20 annual <br /> level principal payment of $2,500,000.00, <br /> starting June 30, 2008, with Option 1 Call <br /> Protection. <br />2 $50,000,000.00 20 4.14% 40 Semi annual payments of accrued interest <br /> years starting December 30, 2007, and 20 annual <br /> level principal payment of $2,500,000.00, <br /> starting June 30, 2008, with Option 2 Call <br /> Protection. <br />CALL PROTECTION: Option is Lessee may prepay the .Lease in whole, but not in <br />part, on any payment due date, and pay a prepayment <br />premium of 3.5%, for the first 10 years of the Lease. Lessee <br />may prepay the Lease in whole, or in part, on any payment <br />due date, after year tenth without any prepayment premium. <br />If a new amortization schedule is requested .after any partial <br />prepayment there will be a $2,000. re-documentation fee. <br />Option 2: Lessee may prepay the Lease in whole, or but not <br />' in part, on any payment due date, and pay a prepayment <br />premium of 1.5%, for the first 10 years of the Lease. Lessee <br />may prepay the Lease in whole, or in part, on any payment <br />due date, after year tenth without any prepayment premium. <br />If a new amortization schedule is requested after any partial <br />prepayment there will be a $2,000. re-documentation fee. <br />INDEXYNG: The Lease Rates in this Proposal were based on market <br />conditions. The Lease Rates above will be fixed until June 30tH <br />2007 so long as the Lessee notifies the Lessor by phone and <br />email by the close of. business on March 15t", 2007 <br />confirming that STLC's proposal meets the needs of the Lessee <br />and will be recommended for submission to the Local <br />Government Commission. STLC .will then lock-in the Lease <br />Rate for the Term the Lessee selects. .Otherwise, the <br />proposed Lease Rate will be adjusted according to the <br />following formula. This index attempts to minimize the effect <br />of any volatility in interest rates on the final indexed interest <br />rate. The new interest rate will be established by adding 67% <br />of the change in the' Swap Rate from the rate for March 13, <br />2007, until the time of adjustment, to the rate bid. The rate <br />