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4 <br /> PROPOSAL EXHIBIT (NO.J 1 <br /> The terms of this Proposal Exhibit are incorporated by reference within <br /> the Proposal letter dated May 9. 1989. <br /> 1. TYPE OF PROJECT: Lease-Purchase of computer hardware. <br /> 2. AMOUNT TO BE FUNDED; Approximately $225,000. <br /> 3. PROJECT LOCATION; Orange County, North Carolina. <br /> 4. ANTICIPATED FUNDING DATE: May 1989 <br /> 5. LEASE TERN: Five (5) year fixed interest rate alternative. The lease <br /> will amortize over the term selected, with payments at the interest <br /> rate and payment factor as illustrated below. This rate and payment <br /> factor provided are effective for fundings accomplished within the <br /> next thirty days. <br /> No. of Payments (in advance) 20 quarterly <br /> Interest Rate 7.72% <br /> Payment $13,408.70 <br /> Payment Factor 0.059594 <br /> 6. PURCHASE OPTION: Zero at the end of the lease term. 102% of the <br /> remaining principal at any time during the term. <br /> 7. TITLE: Title to the equipment will pass to the Lessee on the acceptance <br /> date. Title will remain in the Lessee's name so long as all payments in <br /> the agreement have been made. <br /> 8. NONAPPROPRIATIONITERMTNATION: The lease provides that the Lessee is to <br /> make reasonable efforts to obtain funds to satisfy the obligation in each <br /> fiscal year. However, the lease may be terminated without penalty in the <br /> event of nonappropriation. In such event, the Lessee agrees to provide <br /> an attorney's opinion confirming the events of the nonappropriation and <br /> the Lessee's exercise of diligence to obtain funds. <br /> —9. TAX STATUS: This proposal is subject to the Lessee being qualified as a <br /> governmental entity or "political sub-division" within the meaning of <br /> Section 103(A) of the Internal Revenue Code of 1954 as amended. The <br /> Lessee agrees to cooperate with First Union in providing evidence as <br /> deemed necessary or desirable by the Lessor to substantiate such tax <br /> status. <br /> 10. LEASE DEPOSIT: The Lessee will be required to remit a deposit equal to <br /> one percent (1%) of the cost of the equipment upon acceptance of the <br /> proposaL If a commitment from the Lessor is not received within thirty <br /> (30) calendar days this deposit shall be returned to the Lessee. Upon <br /> acceptance of a commitment and execution of the documents the deposit <br /> (without interest thereon) will be applied on a pro rata basis to the <br /> first payment. If the commitment is issued on substantially the same <br /> terms and conditions as outlined in this proposal and is not accepted by <br /> the Lessee by the commitment acceptance date, the Lessor shall retain the <br /> deposit. <br />