Agenda - 04-10-2007-6a - Laserfiche WebLink

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i~ Proposal for Real Estate Financing Page 3 of 7 will be fixed one week prior to funding (or as requested under the option below). The interest rates used in the formula may be obtained from the Federal Reserve H.15 Statistical Release through the Federal Reserve website http•//www federalreserve.gov/releases/H15/ The Lessee will have the option to fix the adjusted Lease Rate at anytime prior to closing so long as the Lessee accepts this proposal as specified below, to go forward with STLC's proposed financing of the Project. ESCROW FUNDING: Lessor has assumed 100% funding into an escrow account on the date of closing for this transaction. The escrow account will be used to pay vendors/contractors and any escrow expenses. No fees associated with the administration of this account will be at Lessee's expense. Escrow Agent is assumed to be SunTrust Bank. Lessor will review and approve escrow disbursements prior to Escrow Agent disbursing funds. It is assumed that all interest earnings will accrue for benefit of Lessee. This proposal also does not take into consideration the application of any interest earnings from the escrow fund of the account. CONSTRUCTION/DRAW INSPECTION FEES: Lessee will obtain a fixed priced contract for construction of the project. The Lessee shall covenant that it will require the contractor to provide performance and payment bonds in an amount sufficient to cover the contract price and contingencies. The bonds shall be accompanied by a rider that identifies the Lessor as a financially interested party. Lessee will submit signed draw requests, Application and Certificate for Payment Forms (AIA-G702/703) (~~AIA Form"), from the Lessee's architect and summary page of any hard or soft costs, along with copies of invoices. The Architect will be contractually bound to provide certified copies of each AIA Form to STLC. Lessee's Finance Officer will also certify that the work has. been completed and according to specs and plans. SunTrust may retain an independent inspecting engineer or architect to verify that required work has been completed. Cost of such inspection will be the responsibility of STLC. REIMBURSEMENT: If the Lessee intends to be reimbursed for any cost associated with the project, intent for reimbursement from the proceeds of the financing must be evidenced and must qualify under Treasury Regulation Section 1.150.2. INSURANCE: The Lessee shall furnish confirmation of (a) all risk physical damage insurance coverage for the full cost of the property, (b) two million ($2,000,000.00) dollars combined single limit " property damage and bodily injury insurance covering the property, (c) an ALTA leasehold title .insurance policy in an amount at least equal to the financed amount. LESSOR shall be named as loss payee and additional insured on such coverage.