Loan Worksheet: Westside Retail Property Loan from TD Bank Loan from AMB Insurance Projected Rate 5.50% 5.25% Loan Term 3 10 Amortization 20 20 Debt Constant * 8.368% 8.195% Stabilized NOI 750,000 750,000 Required Debt Coverage Service Ratio (DSCR) 1.20 1.25 Maximum Annual Debt Service based on Debt ? ? Coverage Service Ratio Maxinmm Loan Using Debt Coverage Test 2 2 Capitalization Rate for Office Properties 7.00% 7.00% Value Based on Cap Rate ? ? Required Loan to Value Coverage (LTV) 75% 70% Maximum Loan Using Loan to Value Test ? ? Upfront Loan Fees 1.00% 1.00% 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. **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 captial expenditures. LTV = NOI/Property Value DSCR = NOI/Annual Debt Service