Loan WorkSheet: Beacon Office Building Loan from TD B Loan from AMB Insuance Projected Rate 6.00% 5.85% Loan Term 3 10 Amortization 20 15 Debt Constant * 8.718% 10.196% Stabilized NO 975,000 975,000 Required Debt Coverage Service Ratio (DSCR) 1.20 1.25 Maximum Annual Debt Service based on Debt Coverage Service Ratio 812,500 ? Maxinmm Loan Using Debt Coverage Test 9,319,311 Capitalization Rate for Office Properties 7.50% 7.50% Value Based on Cap Rate 13,000,000 Required Loan to Value Coverage (LTV) 75% 70% Maximum Loan Using Loan to Value Test 9,750,000 Upfront Loan Fees 1.00% 2.00% Recourse or Non-Recourse Recourse Non-Recourse Prepayment Penalty None 1.00% Other Considerations Short-term Long term *A loan constant is an interest factor used to calculate annual debt service of a loan. When multiplied by the original loan balance, it gives the dollar amount of the annual payment. captial expenditures. **The stablized NOI is estimated at the end of 2016. The assumption is that with a given debt coverage ratio, there will be adequate cash flows to fund LTV = Loan Amount/Property Value DSCR = NOI/Annual Debt Service In other words, debt constant is a percentage of the annual debt service on a loan over its total loan amount. E.g., for a $10,000 loan, the debt constrant of 8.718% can be calculated as