10-4-01 SUMMARY OF TERMS REVENUE BONDS

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• Amortization of the Bonds: Series A. The Bonds shall have a 10-year final maturity and shall amortize over a 35-year term schedule. Series B. The Bonds shall amortize in years 2004-2007. Series C. The Bonds shall amortize over 30 years. Interest Rate: Estimated interest rates are as follows: Series A: 6.125% Series B: 8.00% Series C: 9.00% Optional Redemption (Series A&B): The Borrower,with the approval of the Issuer, and at their option may redeem any or all of the outstanding principal of the Bonds on any interest payment date with 60 days prior notice according to the following schedule: Years 1-4 No Optional Redemption Year 5 102%of Par Value Outstanding Year 6 101% of Par Value Outstanding Year 7 and Thereafter Par Mandatory Redemption: The Borrower shall redeem Series C bonds with 50% of excess annual cash flow upon project stabilization. Annual excess cash flow shall be defined as cash flow after the Series A and Series B Bonds have been paid and after the repair and replacement fund has been funded. Management Contract: The Borrower will enter into a Management Contract with Great Lakes Management Incorporated, a Minnesota for-profit corporation. The Management Contract entered into with Great Lakes will conform to the "Management Contract Rules" as provided for in Federal tax law, without any impairment to the tax-exempt nature of the Bonds. Sources and Uses of Funds: An approximation of the Sources and Uses of Funds for the Project is as follows: Sources: Par Amount of Series A $7,585,000.00 Par Amount of Series B 235,000.00 Par Amount of Series C 250,000.00 Deferred City Fees(1) 200,000.00 Total Sources: $8,070,000.00 Uses: City Fees(Park dedication,water&sewer) $ 200,000.00 Underwriter's Discount 195,500.00 Cost of Issuance, 194,806.00 Debt Service Reserve Fund 547,828.76 Capitalized Interest Fund(thru 4/1/03) 575,267.76 2 Miller Johnson Steichen Kinnard, Inc.