BRUCE MANSFIELD UNIT 1 LEASES: By the Numbers, Version 1.0 The Bruce Mansfield Station, Units 1, 2 and 3 NOTE: There are many numbers and calculations in this compilation. The Complier is an attorney by training without great skill with numbers and calculations. Thus, these numbers and calculations should be viewed as illustrative and not definitive. Law Offices of Timothy M. Toy Mendham, New Jersey 07945 tmtoy@tmtoylaw.com December 7, 2016 BRUCE MANSFIELD UNIT 1 LEASES: By the Numbers, Version 1.0 1
Contents Introduction... 3 TABLE 1: Principal Amortization and Declining Debt Balance... 5 TABLE 2: Lease-by-Lease Purchase Prices and Undivided and Deal Percentages... 7 TABLE 3: Termination Amount and Outstanding Debt Principal per kw... 8 TABLE 4: EQUITY PORTION OF BASIC RENT... 10 TABLE 4-A: PERIODIC INTEREST ACCRUAL... 12 TABLE 5: BRUCE MANSFIELD UNIT 1 LEASES: CASH/PERIODIC RENT v. AVERAGE RENT... 14 TABLE 6: Equity Portion of Termination Amount... 16 TABLE 7: Fixed Ancillary Facilities Rent... 18 DOCUMENT DESCRIPTIONS OF LEASE SCHEDULES... 19 SCHEDULE 1-A: Basic (Cash)/Periodic Rent... 19 SCHEDULE 1-B: Allocated Rents... 19 SCHEDULE 1-C: Section 467 Loan Mechanics... 20 SCHEDULE 2: Termination Amount... 21 SCHEDULE 3: Calculation of Premium... 21 SCHEDULE 4: Amounts Used in the Calculation of Termination Amounts and PVRR Amounts... 22 SCHEDULE 1-A: Rent Payment... 23 SCHEDULE 1-B: Allocated Rent... 25 SCHEDULE 1-C: Section 467 Loan Principal Balance; Section 467 Interest... 27 SCHEDULE 2: Termination Amounts... 29 SCHEDULE 3: Amounts Used in the Calculation of Special Event Amount... 34 SCHEDULE 4: Amounts Used in the Calculation of Termination Amounts and PVRR Amounts... 35 BRUCE MANSFIELD UNIT 1 LEASES: By the Numbers, Version 1.0 2
Introduction 1. TABLES have been created by the Compiler. Schedules are schedules from the Mansfield 2007 Trust A lease. Columns have been added to some schedules to show the aggregate dollar equivalent amount obtained from applying the lease schedule percentage to the $1,315,500,000.00 aggregate of purchase prices. 1. Table 1 was populated using: (i) the percentage amortization shown in the Trust A Lessor Note; 1 and (ii) the aggregate purchase prices for the six separate lease transactions ($1,315,500,000 2 ). The dollar amounts correspond exactly to the stated dollar-expressed amortization of the pass through certificates (PTCs), 3 thereby enabling the assumption that the rent and other percentages in the leases schedules and the debt amortization percentages across all six leases are the same. Had the extrapolated cash equivalent amortization departed from the stated amortization of the PTCs, this would mean that one or more of the leases had percentage schedules that departed from the Trust A lease schedules--- thus requiring all sets of lease and debt schedules to calculate aggregate dollar amounts and sum such amounts across all leases. 2. Table 2 shows information that varies across each of the six leases: undivided interest percentages; deal percentage; and purchase prices. 3. Table 3 shows Termination Amounts expressed in dollars per kw and lease debt balance in dollars per kw. Table 3 shows entries only for the debt service payment dates of June 1 and December 1. Termination Amounts are stated monthly in the lease schedule as shown in Schedule 2. 4. Table 4 shows the so-called equity portion of rent (sometimes called free cash ) the amount by which scheduled cash rent exceeds the amount of principal and interest due on the date in question. Amounts prior to December 1, 2016 can be readily calculated but are not shown in the Table 4. 5.Table 4-A shows the accrued interest amounts used in assembling Table 4. 6. Table 5 shows the excess (shortfall) of cash rent (called periodic rent in the leases) in relation to average semi-annual rent. 1 https://www.sec.gov/archives/edgar/data/1031296/000095013607005284/file4.htm 2 See Table 2. 3 Pages 142-143 of Rule 424(b)(3) prospectus: https://www.sec.gov/archives/edgar/data/1407702/000095013607005910/file1.htm BRUCE MANSFIELD UNIT 1 LEASES: By the Numbers, Version 1.0 3
7. Table 6 shows the Equity Portion of Termination, the amount by which the scheduled cash Termination Amount exceeds the amount of principal and interest on the Lessor Notes then scheduled to be due on the date in question. 8. Schedules 1-A, 1-B, 1-C, 2, 3 and 4 are the lease schedules. Preceding the Lease schedules are excerpts from the Leases (see pages 19 through 22) showing the lease provision that utilizes the schedule in question. 9. Schedules 3 and 4 relate to the calculation of debt premiums that are due in certain situations. Due to the remoteness of the situations, debt premium calculations are not considered in this Compilation. BRUCE MANSFIELD UNIT 1 LEASES: By the Numbers, Version 1.0 4
TABLE 1: Principal Amortization and Declining Debt Balance Payment Date [A] Percentage of Principal Amount Payable [B] Cash Equivalent Amortization [C] Post- Amortization Balance July 13, 2007 0.0000000000% $0.00 $1,135,300,000.00 December 1, 2007 0.0000000000% $0.00 $1,135,300,000.00 June 1, 2008 0.0000000000% $0.00 $1,135,300,000.00 December 1, 2008 0.0000000000% $0.00 $1,135,300,000.00 June 1, 2009 0.8235708623% $9,350,000.00 $1,125,950,000 December 1, 2009 0.0000000000% $0.00 $1,125,950,000 June 1, 2010 1.0657975865% $12,100,000.00 $1,113,850,000 December 1, 2010 0.0000000000% $0.00 $1,113,850,000 June 1, 2011 1.1406676649% $12,950,000.00 $1,100,900,000 December 1, 2011 0.0000000000% $0.00 $1,100,900,000 June 1, 2012 4.4701840923% $50,750,000.00 $1,050,150,000 December 1, 2012 0.0000000000% $0.00 $1,050,150,000 June 1, 2013 5.4126662556% $61,450,000.00 $988,700,000 December 1, 2013 0.0000000000% $0.00 $988,700,000 June 1, 2014 5.8002290144% $65,850,000.00 $922,850,000 December 1, 2014 0.0000000000% $0.00 $922,850,000 June 1, 2015 6.2098123844% $70,500,000.00 $852,350,000 December 1, 2015 0.0000000000% $0.00 $852,350,000 June 1, 2016 5.5756187792% $63,300,000.00 $789,050,000 December 1, 2016 0.0000000000% $0.00 $789,050,000 June 1, 2017 1.7484365366% $19,850,000.00 $769,200,000 December 1, 2017 0.0000000000% $0.00 $769,200,000 June 1, 2018 3.9681141548% $45,050,000.00 $724,150,000 December 1, 2018 0.0000000000% $0.00 $724,150,000 June 1, 2019 4.1398749229% $47,000,000.00 $677,150,000 December 1, 2019 0.0000000000% $0.00 $677,150,000 June 1, 2020 1.9862591386% $22,550,000.00 $654,600,000 December 1, 2020 0.0000000000% $0.00 $654,600,000 June 1, 2021 4.3380604246% $49,250,000.00 $605,350,000 December 1, 2021 0.0000000000% $0.00 $605,350,000 June 1, 2022 4.5274376817% $51,400,000.00 $553,950,000 December 1, 2022 0.0000000000% $0.00 $553,950,000 June 1, 2023 2.2681229631% $25,750,000.00 $528,200,000 December 1, 2023 0.0000000000% $0.00 $528,200,000 June 1, 2024 4.7564520391% $54,000,000.00 $474,200,000 December 1, 2024 0.0000000000% $0.00 $474,200,000 June 1, 2025 4.9678499075% $56,400,000.00 $417,800,000 December 1, 2025 0.0000000000% $0.00 $417,800,000 June 1, 2026 2.5940280102% $29,450,000.00 $388,350,000 December 1, 2026 0.0000000000% $0.00 $388,350,000 BRUCE MANSFIELD UNIT 1 LEASES: By the Numbers, Version 1.0 5
June 1, 2027 5.4787280895% $62,200,000.00 $326,150,000 December 1, 2027 0.0000000000% $0.00 $326,150,000 June 1, 2028 5.7385713027% $65,150,000.00 $261,000,000 December 1, 2028 0.0000000000% $0.00 $261,000,000 June 1, 2029 2.5631991544% $29,100,000.00 $231,900,000 December 1, 2029 0.0000000000% $0.00 $231,900,000 June 1, 2030 6.0600722276% $68,800,000.00 $163,100,000 December 1, 2030 0.0000000000% $0.00 $163,100,000 June 1, 2031 4.5846912710% $52,050,000.00 $111,050,000 December 1, 2031 1.5678675240% $17,800,000.00 $93,250,000 June 1, 2032 2.3429930415% $26,600,000.00 $66,650,000 December 1, 2032 0.0000000000% $0.00 $66,650,000 June 1, 2033 5.7561877918% $65,350,000.00 $1,300,000 December 1, 2033 0.0000000000% $0.00 $1,300,000 June 1, 2034 0.1145071787% $1,300,000.00 $0.00 Total 100.0000000000% $1,135,300,000.00 ---- BRUCE MANSFIELD UNIT 1 LEASES: By the Numbers, Version 1.0 6
TABLE 2: Lease-by-Lease Purchase Prices and Undivided and Deal Percentages BRUCE MANSFIELD UNIT 1 LEASE: (i) Undivided Interest Percentages and (ii) Deal Percentage (i.e., Trust Purchase Price Expressed as a Percentage of Overall Purchase Price for 2007 Sale and Leaseback $1,315,500,000.00) MANSFIELD 2007 TRUST Owner Participant Undivided Interest % Deal % 4 Purchase Price A MetLife Capital, Inc. 5 16.8885% 6 18% $236,790,000.00 B MetLife Capital, Inc. 15.0120% 16% $210,480,000.00 C MetLife Capital, Inc. 15.0120% 16% $210,480,000.00 D MetLife Capital, Inc. 15.0120% 16% $210,480,000.00 E MetLife Capital, Inc. 15.0120% 16% $210,480,000.00 MetLife Subtotal 76.9365% 82% $1,078,710,000.00 F BM1, LLC 16.8885% 18% $236,790,000.00 Total 93.825% 100% $1,315,500,000.00 Purchase Price Equals Deal % of $1,315,500,000 4 The deal percentage is the undivided interest percentage expressed as a percentage of the aggregate percentages interest, 93.825%, that was sold and leased back. 5 Trusts A through E: MetLife Capital is the assignee of Hillbrook Corp, the original owner participant and a subsidiary of AIG. 6 Percentages derived from recorded deeds and cross-checked to FERC exempt wholesale generator (a/k/a EWG ) exemption filings. BRUCE MANSFIELD UNIT 1 LEASES: By the Numbers, Version 1.0 7
TABLE 3: Termination Amount and Outstanding Debt Principal per kw (C) (A) Stated TV (D) Stated Termination (B) Stated TV Expressed Debt Balance Amount ( TV ) Expressed in $ in Dollars after giving effect Expressed as a % (A) of $1,315,500,000 per Kw 7 to scheduled rent (E) Debt Balance Expressed in Dollars per Kw Semi-Annual Date Dec 1 2007 101.25174736% $1,331,764,233.03 $1,710.13 $1,135,300,000 $1,457.85 Jun 1 2008 101.28815863% $1,332,243,150.46 $1,710.75 $1,135,300,000 $1,457.85 Dec 1 2008 102.06745670% $1,342,493,257.98 $1,723.91 $1,135,300,000 $1,457.85 Jun 1 2009 101.94448169% $1,340,875,767.67 $1,721.83 $1,125,950,000 $1,445.84 Dec 1 2009 102.63638397% $1,349,976,358.36 $1,733.52 $1,125,950,000 $1,445.84 Jun 1 2010 102.37115595% $1,346,487,814.21 $1,729.04 $1,113,850,000 $1,430.30 Dec 1 2010 102.98938311% $1,354,619,356.05 $1,739.48 $1,113,850,000 $1,430.30 Jun 1 2011 102.58678153% $1,349,323,937.46 $1,732.68 $1,100,900,000 $1,413.68 Dec 1 2011 103.1352556842% $1,356,538,018.01 $1,741.94 $1,100,900,000 $1,413.68 Jun 1 2012 99.7864347981% $1,312,490,976.90 $1,685.38 $1,050,150,000 $1,348.51 Dec 1 2012 100.2692082068% $1,318,840,895.54 $1,693.54 $1,050,150,000 $1,348.51 Jun 1 2013 96.0405293403% $1,263,221,082.41 $1,622.11 $988,700,000 $1,269.60 Dec 1 2013 96.4619380625% $1,268,763,871.34 $1,629.23 $988,700,000 $1,269.60 Jun 1 2014 91.8418959126% $1,207,996,456.94 $1,551.20 $922,850,000 $1,185.04 Dec 1 2014 92.2068142065% $1,212,796,227.26 $1,557.36 $922,850,000 $1,185.04 Jun 1 2015 87.1766786540% $1,146,634,854.34 $1,472.40 $852,350,000 $1,094.51 Dec 1 2015 87.4890368863% $1,150,743,302.17 $1,477.68 $852,350,000 $1,094.51 Jun 1 2016 82.9203593826% $1,090,651,486.96 $1,400.52 $789,050,000 $1,013.23 Dec 1 2016 83.1797957177% $1,094,063,853.07 $1,404.90 $789,050,000 $1,013.23 Jun 1 2017 81.8981264779% $1,077,206,057.56 $1,383.25 $769,200,000 $987.74 Dec 1 2017 82.1056498032% $1,079,935,611.86 $1,386.76 $769,200,000 $987.74 Jun 1 2018 78.8539432096% $1,037,165,915.04 $1,331.83 $724,150,000 $929.89 Dec 1 2018 79.0249870694% $1,039,415,654.92 $1,334.72 $724,150,000 $929.89 Jun 1 2019 75.6014650824% $994,386,070.23 $1,276.90 $677,150,000 $869.53 Dec 1 2019 75.7524983099% $996,372,610.27 $1,279.45 $677,150,000 $869.53 Jun 1 2020 74.1720494172% $975,584,965.98 $1,252.76 $654,600,000 $840.58 Dec 1 2020 74.3088406920% $977,384,181.62 $1,255.07 $654,600,000 $840.58 Jun 1 2021 70.6825966267% $929,688,193.43 $1,193.82 $605,350,000 $777.34 Dec 1 2021 70.8090338921% $931,351,222.78 $1,195.96 $605,350,000 $777.34 Jun 1 2022 67.0127010072% $881,418,056.35 $1,131.84 $553,950,000 $711.33 Dec 1 2022 67.1337558251% $883,010,290.37 $1,133.88 $553,950,000 $711.33 Jun 1 2023 65.2875222177% $858,726,779.73 $1,102.70 $528,200,000 $678.27 7 Formula: (B) divided by 778,750 (i.e., 93.825% of Unit 1 s 830 MW rating). BRUCE MANSFIELD UNIT 1 LEASES: By the Numbers, Version 1.0 8
Dec 1 2023 65.4087804842% $860,321,689.71 $1,104.75 $528,200,000 $678.27 Jun 1 2024 61.4138281299% $807,776,081.39 $1,037.27 $474,200,000 $608.92 Dec 1 2024 61.5416285691% $809,457,040.57 $1,039.43 $474,200,000 $608.92 Jun 1 2025 57.3760587842% $754,667,301.19 $969.08 $417,800,000 $536.50 Dec 1 2025 57.5182008648% $756,536,895.97 $971.48 $417,800,000 $536.50 Jun 1 2026 55.4232339386% $728,981,795.99 $936.09 $388,350,000 $498.68 Dec 1 2026 55.5884777351% $731,155,247.65 $938.88 $388,350,000 $498.68 Jun 1 2027 51.0335140406% $671,243,810.18 $861.95 $326,150,000 $418.81 Dec 1 2027 51.2379648769% $673,932,952.03 $865.40 $326,150,000 $418.81 Jun 1 2028 46.5073717300% $611,711,460.36 $785.50 $261,000,000 $335.15 Dec 1 2028 46.7727124906% $615,201,487.39 $789.99 $261,000,000 $335.15 Jun 1 2029 44.8577912504% $590,014,528.32 $757.64 $231,900,000 $297.78 Dec 1 2029 45.2023311210% $594,546,261.23 $763.46 $231,900,000 $297.78 Jun 1 2030 40.3586303749% $530,837,065.32 $681.65 $163,100,000 $209.44 Dec 1 2030 40.8496204301% $537,295,057.52 $689.95 $163,100,000 $209.44 Jun 1 2031 37.0002694972% $486,664,544.70 $624.93 $111,050,000 $142.60 Dec 1 2031 36.3053058018% $477,523,687.21 $613.19 $93,250,000 $119.74 Jun 1 2032 34.0031771406% $447,243,788.93 $574.31 $66,650,000 $85.59 Dec 1 2032 34.8185584005% $457,968,498.64 $588.08 $66,650,000 $85.59 Jun 1 2033 29.4949750204% $387,947,406.44 $498.17 $1,300,000 $1.67 Dec 1 2033 30.4735541274% $400,818,657.44 $514.69 $1,300,000 $1.67 Jun 1 2034 8 27.7975853976% $365,621,640.73 $469.50 $0.00 Dec 1 2034 28.7862039245% $378,624,940.22 $486.20 $0.00 Jun 1 2035 25.7564751551% $338,774,917.72 $435.02 $0.00 Dec 1 2035 26.7120055742% $351,343,009.32 $451.16 $0.00 Jun 1 2036 22.7757608351% $299,569,582.26 $384.68 $0.00 Dec 1 2036 23.6316584865% $310,827,204.07 $399.14 $0.00 Jun 1 2037 24.2220030064% $318,592,005.54 $409.11 $0.00 Dec 1 2037 25.2968569647% $332,729,559.66 $427.26 $0.00 Jun 1 2038 26.4981943580% $348,530,750.39 $447.55 $0.00 Dec 1 2038 26.0582588497% $342,744,278.65 $440.12 $0.00 Jun 1 2039 27.4276559499% $360,755,958.71 $463.25 $0.00 Dec 1 2039 28.9587800457% $380,894,833.94 $489.11 $0.00 Jun 1 2040 30.6624047010% $403,302,609.03 $517.88 $0.00 Jun 13 2040 21.5013547455% $282,807,318.97 $363.16 $0.00 8 Scheduled debt maturity. BRUCE MANSFIELD UNIT 1 LEASES: By the Numbers, Version 1.0 9
TABLE 4: EQUITY PORTION OF BASIC RENT [C] Debt Service [D] [A] Rent [B] [C-1] [C-2] [C-3] Debt Service Cash Rent [B] Less Payment Date Cash Rent Principal Interest 9 [C-1 plus {C-2] Debt Service [C-3] Dec 1 2016 $27,065,081.74 $0.00 $27,024,962.50 $27,024,962.50 $40,119.24 Jun 1 2017 $47,042,232.38 $19,850,000.00 $27,024,962.50 $46,874,962.50 $167,269.88 Dec 1 2017 $26,384,209.99 $0.00 $26,345,100.00 $26,345,100.00 $39,109.99 Jun 1 2018 $71,607,973.31 $45,050,000.00 $26,345,100.00 $71,395,100.00 $212,873.31 Dec 1 2018 $24,838,956.99 $0.00 $24,802,137.50 $24,802,137.50 $36,819.49 Jun 1 2019 $71,987,639.89 $47,000,000.00 $24,802,137.50 $71,802,137.50 $185,502.39 Dec 1 2019 $23,226,817.27 $0.00 $23,192,387.50 $23,192,387.50 $34,429.77 Jun 1 2020 $45,919,556.13 $22,550,000.00 $23,192,387.50 $45,742,387.50 $177,168.63 Dec 1 2020 $22,453,333.13 $0.00 $22,420,050.00 $22,420,050.00 $33,283.13 Jun 1 2021 $71,892,755.38 $49,250,000.00 $22,420,050.00 $71,670,050.00 $222,705.38 Dec 1 2021 $20,764,016.57 $0.00 $20,733,237.50 $20,733,237.50 $30,779.07 Jun 1 2022 $72,331,425.69 $51,400,000.00 $20,733,237.50 $72,133,237.50 $198,188.19 Dec 1 2022 $19,000,953.08 $0.00 $18,972,787.50 $18,972,787.50 $28,165.58 Jun 1 2023 $44,876,781.38 $25,750,000.00 $18,972,787.50 $44,722,787.50 $153,993.88 Dec 1 2023 $18,117,706.39 $0.00 $18,090,850.00 $18,090,850.00 $26,856.39 Jun 1 2024 $72,299,480.75 $54,000,000.00 $18,090,850.00 $72,090,850.00 $208,630.75 Dec 1 2024 $16,265,460.68 $0.00 $16,241,350.00 $16,241,350.00 $24,110.68 Jun 1 2025 $72,821,701.88 $56,400,000.00 $16,241,350.00 $72,641,350.00 $180,351.88 Dec 1 2025 $14,330,893.09 $0.00 $14,309,650.00 $14,309,650.00 $21,243.09 Jun 1 2026 $43,889,309.07 $29,450,000.00 $14,309,650.00 $43,759,650.00 $129,659.07 Dec 1 2026 $13,320,733.14 $0.00 $13,300,987.50 $13,300,987.50 $19,745.64 Jun 1 2027 $75,613,070.67 $62,200,000.00 $13,300,987.50 $75,500,987.50 $112,083.17 Dec 1 2027 $11,187,220.64 $0.00 $11,170,637.50 $11,170,637.50 $16,583.14 Jun 1 2028 $76,433,937.54 $65,150,000.00 $11,170,637.50 $76,320,637.50 $113,300.04 Dec 1 2028 $8,952,520.54 $0.00 $8,939,250.00 $8,939,250.00 $13,270.54 Jun 1 2029 $38,095,720.26 $29,100,000.00 $8,939,250.00 $38,039,250.00 $56,470.26 Dec 1 2029 $7,954,365.97 $0.00 $7,942,575.00 $7,942,575.00 $11,790.97 Jun 1 2030 $76,856,501.40 $68,800,000.00 $7,942,575.00 $76,742,575.00 $113,926.40 Dec 1 2030 $5,594,467.76 $0.00 $5,586,175.00 $5,586,175.00 $8,292.76 Jun 1 2031 $63,886,551.87 $52,050,000.00 $5,586,175.00 $57,636,175.00 $6,250,376.87 9 (A) Annual interest rate of 6.85% divided by two (3.425%) TIMES (B) pre-amortization debt balance: for each date, Column [B] plus Column [C] in Table 1. BRUCE MANSFIELD UNIT 1 LEASES: By the Numbers, Version 1.0 10
Dec 1 2031 $21,635,533.48 $17,800,000.00 $3,803,462.50 $21,603,462.50 $32,070.98 Jun 1 2032 $43,524,352.93 $26,600,000.00 $3,193,812.50 $29,793,812.50 $13,730,540.43 Dec 1 2032 $2,286,151.28 $0.00 $2,282,762.50 $2,282,762.50 $3,388.78 Jun 1 2033 $84,554,378.15 $65,350,000.00 $2,282,762.50 $67,632,762.50 $16,921,615.65 Dec 1 2033 $44,591.11 $0.00 $44,525.00 $44,525.00 $66.11 Jun 1 2034 10 $49,769,001.44 $1,300,000.00 $44,525.00 $1,344,525.00 $48,424,476.44 Dec 1 2034 $0.00 $0.00 Jun 1 2035 $54,460,932.80 $54,460,932.80 Dec 1 2035 $0.00 $0.00 Jun 1 2036 $65,866,539.07 $65,866,539.07 Dec 1 2036 $0.00 $0.00 Jun 1 2037 $4,977,411.31 $4,977,411.31 Dec 1 2037 $0.00 $0.00 Jun 1 2038 $0.00 $0.00 Dec 1 2038 $23,544,945.29 $23,544,945.29 Jun 1 2039 $0.00 $0.00 Dec 1 2039 $0.00 $0.00 Jun 1 2040 $0.00 $0.00 Jun 13 2040 $121,094,677.65 $121,094,677.65 TOTAL $1,676,769,889.09 $789,050,000.00 $529,796,125.00 $1,318,846,125.00 $357,923,764.09 10 Scheduled debt maturity. BRUCE MANSFIELD UNIT 1 LEASES: By the Numbers, Version 1.0 11
TABLE 4-A: PERIODIC INTEREST ACCRUAL [A] Pre-Amortization Payment Date Balance December 1, 2016 $789,050,000 June 1, 2017 $789,050,000 December 1, 2017 $769,200,000 June 1, 2018 $769,200,000 December 1, 2018 $724,150,000 June 1, 2019 $724,150,000 December 1, 2019 $677,150,000 June 1, 2020 $677,150,000 December 1, 2020 $654,600,000 June 1, 2021 $654,600,000 December 1, 2021 $605,350,000 June 1, 2022 $605,350,000 December 1, 2022 $553,950,000 June 1, 2023 $553,950,000 December 1, 2023 $528,200,000 June 1, 2024 $528,200,000 December 1, 2024 $474,200,000 June 1, 2025 $474,200,000 December 1, 2025 $417,800,000 June 1, 2026 $417,800,000 December 1, 2026 $388,350,000 June 1, 2027 $388,350,000 December 1, 2027 $326,150,000 June 1, 2028 $326,150,000 December 1, 2028 $261,000,000 [B] Interest Due 3.425% 11 of [A] $27,024,962.50 $27,024,962.50 $26,345,100.00 $26,345,100.00 $24,802,137.50 $24,802,137.50 $23,192,387.50 $23,192,387.50 $22,420,050.00 $22,420,050.00 $20,733,237.50 $20,733,237.50 $18,972,787.50 $18,972,787.50 $18,090,850.00 $18,090,850.00 $16,241,350.00 $16,241,350.00 $14,309,650.00 $14,309,650.00 $13,300,987.50 $13,300,987.50 $11,170,637.50 $11,170,637.50 $8,939,250.00 11 3.425% is one-half of the annual interest rate. No effort has been undertaken by the compiler to adjust for bond interest: to wit, computation of interest based on a 360-day year of twelve 30-day months. BRUCE MANSFIELD UNIT 1 LEASES: By the Numbers, Version 1.0 12
June 1, 2029 $261,000,000 December 1, 2029 $231,900,000 June 1, 2030 $231,900,000 December 1, 2030 $163,100,000 June 1, 2031 $163,100,000 December 1, 2031 $111,050,000 June 1, 2032 $93,250,000 December 1, 2032 $66,650,000 June 1, 2033 $66,650,000 December 1, 2033 $1,300,000 June 1, 2034 $1,300,000 $8,939,250.00 $7,942,575.00 $7,942,575.00 $5,586,175.00 $5,586,175.00 $3,803,462.50 $3,193,812.50 $2,282,762.50 $2,282,762.50 $44,525.00 $44,525.00 BRUCE MANSFIELD UNIT 1 LEASES: By the Numbers, Version 1.0 13
TABLE 5: BRUCE MANSFIELD UNIT 1 LEASES: CASH/PERIODIC RENT v. AVERAGE RENT (A) (B) (C) (D) (E) (F) PERIODIC RENT PERCENTAGE CASH RENT EQUALS (B) times $1,315,500,000 12 CUMMULATIVE AVERAGE SEMI- ANNUAL RENT 13 CUMMULATIVE EXCESS (SHORTFALL) OF (D) OVER (E) CASH RENT DATE CUMMULATIVE CASH RENT Jul 13 2007 0.00000000% $0.00 $0.00 $39,554,233.72 -$39,554,233.72 Dec 1 2007 3.38233986% $44,494,680.86 $44,494,680.86 $79,108,467.44 -$34,613,786.58 Jun 1 2008 3.80445551% $50,047,612.23 $94,542,293.09 $118,662,701.16 -$24,120,408.07 Dec 1 2008 2.96022420% $38,941,749.35 $133,484,042.44 $158,216,934.88 -$24,732,892.43 Jun 1 2009 3.82883506% $50,368,325.21 $183,852,367.66 $197,771,168.60 -$13,918,800.94 Dec 1 2009 2.93584466% $38,621,036.50 $222,473,404.16 $237,325,402.32 -$14,851,998.16 Jun 1 2010 3.86038506% $50,783,365.46 $273,256,769.62 $276,879,636.04 -$3,622,866.41 Dec 1 2010 2.90429466% $38,205,996.25 $311,462,765.88 $316,433,869.76 -$4,971,103.88 Jun 1 2011 3.89415138% $51,227,561.40 $362,690,327.28 $355,988,103.48 $6,702,223.80 Dec 1 2011 2.87052834% $37,761,800.31 $400,452,127.59 $395,542,337.20 $4,909,790.40 Jun 1 2012 6.73844504% $88,644,244.50 $489,096,372.09 $435,096,570.92 $53,999,801.18 Dec 1 2012 2.73820087% $36,021,032.44 $525,117,404.54 $474,650,804.63 $50,466,599.90 Jun 1 2013 7.42202619% $97,636,754.53 $622,754,159.07 $514,205,038.35 $108,549,120.71 Dec 1 2013 2.57797381% $33,913,245.47 $656,667,404.54 $553,759,272.07 $102,908,132.47 Jun 1 2014 7.59372597% $99,895,465.14 $756,562,869.67 $593,313,505.79 $163,249,363.88 Dec 1 2014 2.40627403% $31,654,534.86 $788,217,404.54 $632,867,739.51 $155,349,665.03 Jun 1 2015 7.77755034% $102,313,674.72 $890,531,079.26 $672,421,973.23 $218,109,106.03 Dec 1 2015 2.22244966% $29,236,325.28 $919,767,404.54 $711,976,206.95 $207,791,197.59 Jun 1 2016 7.08100337% $93,150,599.33 $1,012,918,003.87 $751,530,440.67 $261,387,563.20 Dec 1 2016 2.05739884% $27,065,081.74 $1,039,983,085.61 $791,084,674.39 $248,898,411.22 Jun 1 2017 3.57599638% $47,042,232.38 $1,087,025,317.99 $830,638,908.11 $256,386,409.88 Dec 1 2017 2.00564120% $26,384,209.99 $1,113,409,527.98 $870,193,141.83 $243,216,386.15 Jun 1 2018 5.44340352% $71,607,973.31 $1,185,017,501.28 $909,747,375.55 $275,270,125.73 Dec 1 2018 1.88817613% $24,838,956.99 $1,209,856,458.27 $949,301,609.27 $260,554,849.00 Jun 1 2019 5.47226453% $71,987,639.89 $1,281,844,098.16 $988,855,842.99 $292,988,255.18 Dec 1 2019 1.76562655% $23,226,817.27 $1,305,070,915.43 $1,028,410,076.71 $276,660,838.72 Jun 1 2020 3.49065421% $45,919,556.13 $1,350,990,471.56 $1,067,964,310.43 $283,026,161.13 12 $1,315,500,000 is the aggregate of purchases prices for the six separately documented sale and leaseback transactions. Cash/periodic rent is expressed as a percentage of purchase price. 13 Total of Column (C), $2,689,687,892.93, divided by the number of semi-annual periods (68) equals $39,554,233.72. This amount equates to the average semi-annual cash/periodic rent for the basic, non-cancellable lease term. BRUCE MANSFIELD UNIT 1 LEASES: By the Numbers, Version 1.0 14
Dec 1 2020 1.70682882% $22,453,333.13 $1,373,443,804.69 $1,107,518,544.15 $265,925,260.54 Jun 1 2021 5.46505172% $71,892,755.38 $1,445,336,560.07 $1,147,072,777.87 $298,263,782.20 Dec 1 2021 1.57841251% $20,764,016.57 $1,466,100,576.64 $1,186,627,011.59 $279,473,565.05 Jun 1 2022 5.49839800% $72,331,425.69 $1,538,432,002.33 $1,226,181,245.31 $312,250,757.02 Dec 1 2022 1.44439020% $19,000,953.08 $1,557,432,955.41 $1,265,735,479.03 $291,697,476.38 Jun 1 2023 3.41138589% $44,876,781.38 $1,602,309,736.79 $1,305,289,712.75 $297,020,024.04 Dec 1 2023 1.37724868% $18,117,706.39 $1,620,427,443.17 $1,344,843,946.47 $275,583,496.71 Jun 1 2024 5.49596965% $72,299,480.75 $1,692,726,923.92 $1,384,398,180.18 $308,328,743.74 Dec 1 2024 1.23644703% $16,265,460.68 $1,708,992,384.60 $1,423,952,413.90 $285,039,970.70 Jun 1 2025 5.53566719% $72,821,701.88 $1,781,814,086.48 $1,463,506,647.62 $318,307,438.86 Dec 1 2025 1.08938754% $14,330,893.09 $1,796,144,979.57 $1,503,060,881.34 $293,084,098.23 Jun 1 2026 3.33632148% $43,889,309.07 $1,840,034,288.64 $1,542,615,115.06 $297,419,173.58 Dec 1 2026 1.01259849% $13,320,733.14 $1,853,355,021.78 $1,582,169,348.78 $271,185,673.00 Jun 1 2027 5.74785790% $75,613,070.67 $1,928,968,092.45 $1,621,723,582.50 $307,244,509.95 Dec 1 2027 0.85041586% $11,187,220.64 $1,940,155,313.09 $1,661,277,816.22 $278,877,496.87 Jun 1 2028 5.81025751% $76,433,937.54 $2,016,589,250.64 $1,700,832,049.94 $315,757,200.69 Dec 1 2028 0.68054128% $8,952,520.54 $2,025,541,771.17 $1,740,386,283.66 $285,155,487.51 Jun 1 2029 2.89591184% $38,095,720.26 $2,063,637,491.43 $1,779,940,517.38 $283,696,974.05 Dec 1 2029 0.60466484% $7,954,365.97 $2,071,591,857.40 $1,819,494,751.10 $252,097,106.30 Jun 1 2030 5.84237943% $76,856,501.40 $2,148,448,358.80 $1,859,048,984.82 $289,399,373.98 Dec 1 2030 0.42527311% $5,594,467.76 $2,154,042,826.56 $1,898,603,218.54 $255,439,608.02 Jun 1 2031 4.85644636% $63,886,551.87 $2,217,929,378.43 $1,938,157,452.26 $279,771,926.17 Dec 1 2031 1.64466237% $21,635,533.48 $2,239,564,911.91 $1,977,711,685.98 $261,853,225.93 Jun 1 2032 3.30857871% $43,524,352.93 $2,283,089,264.84 $2,017,265,919.70 $265,823,345.14 Dec 1 2032 0.17378573% $2,286,151.28 $2,285,375,416.11 $2,056,820,153.42 $228,555,262.70 Jun 1 2033 6.42754680% $84,554,378.15 $2,369,929,794.27 $2,096,374,387.14 $273,555,407.13 Dec 1 2033 0.00338967% $44,591.11 $2,369,974,385.38 $2,135,928,620.86 $234,045,764.52 Jun 1 2034 3.78327643% $49,769,001.44 $2,419,743,386.81 $2,175,482,854.58 $244,260,532.24 Dec 1 2034 0.00000000% $0.00 $2,419,743,386.81 $2,215,037,088.30 $204,706,298.52 Jun 1 2035 4.13994168% $54,460,932.80 $2,474,204,319.61 $2,254,591,322.01 $219,612,997.60 Dec 1 2035 0.00000000% $0.00 $2,474,204,319.61 $2,294,145,555.73 $180,058,763.88 Jun 1 2036 5.00695850% $65,866,539.07 $2,540,070,858.68 $2,333,699,789.45 $206,371,069.23 Dec 1 2036 0.00000000% $0.00 $2,540,070,858.68 $2,373,254,023.17 $166,816,835.51 Jun 1 2037 0.37836650% $4,977,411.31 $2,545,048,269.99 $2,412,808,256.89 $132,240,013.10 Dec 1 2037 0.00000000% $0.00 $2,545,048,269.99 $2,452,362,490.61 $92,685,779.38 Jun 1 2038 0.00000000% $0.00 $2,545,048,269.99 $2,491,916,724.33 $53,131,545.66 Dec 1 2038 1.78980960% $23,544,945.29 $2,568,593,215.28 $2,531,470,958.05 $37,122,257.23 Jun 1 2039 0.00000000% $0.00 $2,568,593,215.28 $2,571,025,191.77 -$2,431,976.49 Dec 1 2039 0.00000000% $0.00 $2,568,593,215.28 $2,610,579,425.49 -$41,986,210.21 Jun 1 2040 0.00000000% $0.00 $2,568,593,215.28 $2,650,133,659.21 -$81,540,443.93 Jun 13 2040 9.20522065% $121,094,677.65 $2,689,687,892.93 $2,689,687,892.93 $0.00 TOTALS $2,689,687,892.93 $2,689,687,892.93 $2,689,687,892.93 $0.00 BRUCE MANSFIELD UNIT 1 LEASES: By the Numbers, Version 1.0 15
Equity Portion of Termination Amount in respect of any determination of Termination Amount or amount determined by reference to Termination Amount payable pursuant to the Operative Documents as of a particular date, means an amount equal to the excess, if any, of (a) the Termination Amount set forth opposite the Termination Date corresponding to such date of determination on Schedule 2 of the Facility Lease over (b) the principal and accrued interest on the Notes scheduled (in accordance with the payment terms of the Notes) to be outstanding on such date of determination after application of any Basic Rent payable on such Termination Date. TABLE 6: Equity Portion of Termination Amount [A] [B] Stated Termination Debt Balance after Amount Expressed giving effect to in Dollars scheduled rent [D] Equity Portion of Termination Amount [A] minus [B] Semi-Annual Date Dec 1 2007 $1,331,764,233.03 $1,135,300,000 $196,464,233.03 Jun 1 2008 $1,332,243,150.46 $1,135,300,000 $196,943,150.46 Dec 1 2008 $1,342,493,257.98 $1,135,300,000 $207,193,257.98 Jun 1 2009 $1,340,875,767.67 $1,125,950,000 $214,925,767.67 Dec 1 2009 $1,349,976,358.36 $1,125,950,000 $224,026,358.36 Jun 1 2010 $1,346,487,814.21 $1,113,850,000 $232,637,814.21 Dec 1 2010 $1,354,619,356.05 $1,113,850,000 $240,769,356.05 Jun 1 2011 $1,349,323,937.46 $1,100,900,000 $248,423,937.46 Dec 1 2011 $1,356,538,018.01 $1,100,900,000 $255,638,018.01 Jun 1 2012 $1,312,490,976.90 $1,050,150,000 $262,340,976.90 Dec 1 2012 $1,318,840,895.54 $1,050,150,000 $268,690,895.54 Jun 1 2013 $1,263,221,082.41 $988,700,000 $274,521,082.41 Dec 1 2013 $1,268,763,871.34 $988,700,000 $280,063,871.34 Jun 1 2014 $1,207,996,456.94 $922,850,000 $285,146,456.94 Dec 1 2014 $1,212,796,227.26 $922,850,000 $289,946,227.26 Jun 1 2015 $1,146,634,854.34 $852,350,000 $294,284,854.34 Dec 1 2015 $1,150,743,302.17 $852,350,000 $298,393,302.17 Jun 1 2016 $1,090,651,486.96 $789,050,000 $301,601,486.96 Dec 1 2016 $1,094,063,853.07 $789,050,000 $305,013,853.07 Jun 1 2017 $1,077,206,057.56 $769,200,000 $308,006,057.56 Dec 1 2017 $1,079,935,611.86 $769,200,000 $310,735,611.86 Jun 1 2018 $1,037,165,915.04 $724,150,000 $313,015,915.04 Dec 1 2018 $1,039,415,654.92 $724,150,000 $315,265,654.92 Jun 1 2019 $994,386,070.23 $677,150,000 $317,236,070.23 Dec 1 2019 $996,372,610.27 $677,150,000 $319,222,610.27 Jun 1 2020 $975,584,965.98 $654,600,000 $320,984,965.98 Dec 1 2020 $977,384,181.62 $654,600,000 $322,784,181.62 Jun 1 2021 $929,688,193.43 $605,350,000 $324,338,193.43 Dec 1 2021 $931,351,222.78 $605,350,000 $326,001,222.78 BRUCE MANSFIELD UNIT 1 LEASES: By the Numbers, Version 1.0 16
Jun 1 2022 $881,418,056.35 $553,950,000 $327,468,056.35 Dec 1 2022 $883,010,290.37 $553,950,000 $329,060,290.37 Jun 1 2023 $858,726,779.73 $528,200,000 $330,526,779.73 Dec 1 2023 $860,321,689.71 $528,200,000 $332,121,689.71 Jun 1 2024 $807,776,081.39 $474,200,000 $333,576,081.39 Dec 1 2024 $809,457,040.57 $474,200,000 $335,257,040.57 Jun 1 2025 $754,667,301.19 $417,800,000 $336,867,301.19 Dec 1 2025 $756,536,895.97 $417,800,000 $338,736,895.97 Jun 1 2026 $728,981,795.99 $388,350,000 $340,631,795.99 Dec 1 2026 $731,155,247.65 $388,350,000 $342,805,247.65 Jun 1 2027 $671,243,810.18 $326,150,000 $345,093,810.18 Dec 1 2027 $673,932,952.03 $326,150,000 $347,782,952.03 Jun 1 2028 $611,711,460.36 $261,000,000 $350,711,460.36 Dec 1 2028 $615,201,487.39 $261,000,000 $354,201,487.39 Jun 1 2029 $590,014,528.32 $231,900,000 $358,114,528.32 Dec 1 2029 $594,546,261.23 $231,900,000 $362,646,261.23 Jun 1 2030 $530,837,065.32 $163,100,000 $367,737,065.32 Dec 1 2030 $537,295,057.52 $163,100,000 $374,195,057.52 Jun 1 2031 $486,664,544.70 $111,050,000 $375,614,544.70 Dec 1 2031 $477,523,687.21 $93,250,000 $384,273,687.21 Jun 1 2032 $447,243,788.93 $66,650,000 $380,593,788.93 Dec 1 2032 $457,968,498.64 $66,650,000 $391,318,498.64 Jun 1 2033 $387,947,406.44 $1,300,000 $386,647,406.44 Dec 1 2033 $400,818,657.44 $1,300,000 $399,518,657.44 Jun 1 2034 14 $365,621,640.73 $365,621,640.73 Dec 1 2034 $378,624,940.22 $378,624,940.22 Jun 1 2035 $338,774,917.72 $338,774,917.72 Dec 1 2035 $351,343,009.32 $351,343,009.32 Jun 1 2036 $299,569,582.26 $299,569,582.26 Dec 1 2036 $310,827,204.07 $310,827,204.07 Jun 1 2037 $318,592,005.54 $318,592,005.54 Dec 1 2037 $332,729,559.66 $332,729,559.66 Jun 1 2038 $348,530,750.39 $348,530,750.39 Dec 1 2038 $342,744,278.65 $342,744,278.65 Jun 1 2039 $360,755,958.71 $360,755,958.71 Dec 1 2039 $380,894,833.94 $380,894,833.94 Jun 1 2040 $403,302,609.03 $403,302,609.03 Jun 13 2040 $282,807,318.97 $282,807,318.97 14 Scheduled debt maturity. BRUCE MANSFIELD UNIT 1 LEASES: By the Numbers, Version 1.0 17
TABLE 7: Fixed Ancillary Facilities Rent Start Date Ancillary Facilities Rent Start Date Ancillary Facilities Rent 07/10/07 to 07/09/08 $ 9,046,641.51 07/10/29 to 07/09/30 $ 7,194,223.50 07/10/08 to 07/09/09 $ 9,042,722.13 07/10/30 to 07/09/31 $ 7,041,702.83 07/10/09 to 07/09/10 $ 9,032,396.88 07/10/31 to 07/09/32 $ 6,886,716.57 07/10/10 to 07/09/11 $ 9,013,311.17 07/10/32 to 07/09/33 $ 6,717,930.85 07/10/11 to 07/09/12 $ 8,988,008.52 07/10/33 to 07/09/34 $ 6,563,721.95 07/10/12 to 07/09/13 $ 8,955,047.34 07/10/34 to 07/09/35 $ 6,409,364.28 07/10/13 to 07/09/14 $ 8,914,237.71 07/10/35 to 07/09/36 $ 6,255,258.64 07/10/14 to 07/09/15 $ 8,859,796.97 07/10/36 to 07/09/37 $ 6,093,593.30 07/10/15 to 07/09/16 $ 8,802,285.00 07/10/37 to 07/09/38 $ 5,946,593.42 07/10/16 to 07/09/17 $ 8,736,866.48 07/10/38 to 07/09/39 $ 5,801,167.19 07/10/17 to 07/09/18 $ 8,655,214.13 07/10/39 to 07/09/40 $ 5,652,726.31 07/10/18 to 07/09/19 $ 8,573,901.06 07/10/40 to 07/09/41 $ 5,517,766.69 07/10/19 to 07/09/20 $ 8,485,197.86 07/10/41 to 07/09/42 $ 5,385,021.15 07/10/20 to 07/09/21 $ 8,389,287.15 07/10/42 to 07/09/43 $ 5,254,096.11 07/10/21 to 07/09/22 $ 8,275,863.81 07/10/43 to 07/09/44 $ 5,125,785.56 07/10/22 to 07/09/23 $ 8,166,043.37 07/10/44 to 07/09/45 $ 5,007,656.27 07/10/23 to 07/09/24 $ 8,049,221.76 07/10/45 to 07/09/46 $ 4,890,956.83 07/10/24 to 07/09/25 $ 7,925,416.21 07/10/46 to 07/09/47 $ 4,773,847.93 07/10/25 to 07/09/26 $ 7,782,320.54 07/10/47 to 07/09/48 $ 4,666,242.07 07/10/26 to 07/09/27 $ 7,645,997.08 07/10/48 to 07/09/49 $ 4,562,591.33 07/10/27 to 07/09/28 $ 7,504,049.34 07/10/49 to 07/10/50 $ 4,445,356.80 07/10/28 to 07/09/29 $ 7,343,598.60 BRUCE MANSFIELD UNIT 1 LEASES: By the Numbers, Version 1.0 18
DOCUMENT DESCRIPTIONS OF LEASE SCHEDULES SCHEDULE 1-A: Basic (Cash)/Periodic Rent Section 3.2(a): The Lessee hereby agrees to pay to the Lessor rent ( Basic Rent ) for the lease of the Facility during the Basic Term on each Rent Payment Date in an amount equal to the Purchase Price multiplied by the percentage of the Purchase Price specified in Schedule 1-A for such Rent Payment Date. All Basic Rent payable pursuant to this Section 3.2 shall be payable in the manner set forth in Section 3.5 and shall be adjusted from time to time in accordance with Section 3.4. Renewal Rent shall be paid in accordance with Section 15.3 hereof. The terms Basic Rent, Renewal Rent and Periodic Rent are intended to constitute fixed rent (as such term is defined in Treasury Regulations Section 1.467-1(h)(3)). 15 SCHEDULE 1-B: Allocated Rents Section 3.2(b): The Basic Rent allocated to each period specified on Schedule 1-B (a Rent Payment Period ) for the use by the Lessee of the Undivided Interest shall be the amount set forth in Schedule 1-B hereof (the Allocated Rent ). Notwithstanding that Periodic Rent is payable in accordance with Section 3.2(a), the Allocated Rent calculated pursuant to this Section 3.2(b) shall represent and be the amount of Periodic Rent for which the Lessee becomes liable for U.S. federal income Tax purposes on account of the use of the Undivided Interest for each calendar year included in whole or in part in the Lease Term. The Allocated Rent is intended to constitute a specific allocation of fixed rent within the meaning of Treasury Regulations Section 1.467-1(c)(2)(ii)(A)(1) and (2). Section 3.2(c): It is the belief and intention of the Lessor and the Lessee that (i) the Facility Lease does not constitute a disqualified leaseback or long-term agreement within the meaning of Section 467(b)(4) of the Code and Treasury Regulations Section 1.467-3(b) and (ii) the Facility Lease provides adequate interest on fixed rents by reason of providing for stated interest at a fixed rate of 5.60% per annum (a rate not lower than the applicable Federal rate) within the meaning of Treasury Regulations Section 1.467-2(b). 15 Fixed rent means any rent to the extent its amount and the time at which it is required to be paid are fixed and determinable under the terms of the rental agreement as of the lease date. BRUCE MANSFIELD UNIT 1 LEASES: By the Numbers, Version 1.0 19
Accordingly, the fixed rent for each Rent Payment Period will be the Allocated Rent. The Allocated Rent shall be adjusted from time to time in accordance with Section 3.4. Each of the Lessor and the Lessee hereby agree that for U.S. federal, state and local income tax purposes, it will treat the Allocated Rent for each Rent Payment Period as the proper amount of rent to be accrued and, in the case of the Lessor, included in gross income and, in the case of the Lessee, deducted from gross income. SCHEDULE 1-C: Section 467 Loan Mechanics Section 3.2(c): Because there is a difference from time to time during the Lease Term between the amount of fixed rent payable on the first day of a Rent Payment Period and the amount of fixed rent that is accrued as of that day under clause (d) (as provided in the applicable Treasury Regulations), for U.S. federal, state and local income tax purposes, there will be a loan which is deemed to be created under Section 467 of the Code and the Treasury Regulations thereunder ( Section 467 Loan ) between the Lessor and the Lessee. The amount of such Section 467 Loan on each Rent Payment Date (the 467 Loan Principal Balance ), and the amount of interest as determined under Section 467 of the Code and the Treasury Regulations thereunder ( Section 467 Interest ) accrued in respect of such Loan during each Rent Payment Period, shall be the amounts set forth in Schedule 1-C hereto as adjusted from time to time in accordance with Section 3.4. Each of the Lessor and the Lessee hereby agrees that for U.S. federal, state and local income tax purposes, (i) it will treat the Section 467 Loan as a loan, (ii) if the 467 Loan Principal Balance is negative within the meaning of Treasury Regulations Section 1.467-4(a), such 467 Loan Principal Balance (the Lessor 467 Loan Principal Balance ) shall be treated as a loan from the Lessee to the Lessor and (iii) if the 467 Loan Principal Balance is positive within the meaning of Treasury Regulations Section 1.467-4(a), such 467 Loan Principal Balance (the Lessee 467 Loan Principal Balance ) shall be treated as a loan from the Lessor to the Lessee. In any Rent Payment Period in which there is a Lessor 467 Loan Principal Balance, the Lessor shall accrue and deduct interest expense, and the Lessee shall accrue and take into income interest income, in each case in an amount equal to the amount set forth for such Rent Payment Period on Schedule 1-C (the Lessor 467 Loan Interest ) and in any Rent Payment Period in which there is a Lessee 467 Loan Principal Balance, the Lessor shall accrue and take into income the interest income and the Lessee shall accrue and deduct interest expense, in each case in an amount equal to the amount set forth for such Rent Payment Period on Schedule 1-C (the Lessee 467 Loan Interest ), as adjusted from time to time in accordance with Section 3.4. In no event shall any principal or interest on any BRUCE MANSFIELD UNIT 1 LEASES: By the Numbers, Version 1.0 20
Section 467 Loan be separately payable as such, it being agreed and understood that these items represent characterizations for income tax purposes only and that all Section 467 Loan principal and interest is already included as part of or as an offset to the Basic Rent, PVRR Amounts and Termination Amounts set forth on Schedule 1-A and Schedule 2, as applicable, and no additional amount is payable and no further adjustment shall be made to reflect any principal or interest on any Section 467 Loan. SCHEDULE 2: Termination Amount Termination Amounts with respect to the Facility Lease and each Termination Date, means the amounts equal to the Purchase Price multiplied by the percentage of the Purchase Price specified on Schedule 2 to the Facility Lease as the corresponding Termination Amount plus the Special Event Amount unless the Termination Amount is being paid pursuant to Section 10.3 or 17 of the Facility Lease. Termination Date with respect to the Facility Lease, means each of the monthly dates during the Lease Term identified as a Termination Date on Schedule 2 of the Facility Lease. SCHEDULE 3: Calculation of Premium Remaining Weighted Average Life for purposes of determining the Special Event Amount, on a given Termination Date shall be the number of days equal to the quotient obtained by dividing (a) the sum of each of the products obtained by multiplying (i) each amount set forth in Column 2 of Schedule 3 to the Facility Lease corresponding to the dates in the Date column that are after the Termination Date by (ii) the number of days from and including such Termination Date to but excluding the date of each such amount, by (b) the sum of all amounts set forth in Column 2 of Schedule 3 to the Facility Lease corresponding to the dates in the Date column that are after the Termination Date. Special Event Amount means, with respect to any Termination Date, an amount (as determined by an independent investment bank of national standing) equal to the excess, if any, of BRUCE MANSFIELD UNIT 1 LEASES: By the Numbers, Version 1.0 21
(a) the present value of the amounts in Column 1 of Schedule 3 to the Facility Lease corresponding to the dates in the Date column that are after the Termination Date, computed by discounting such amounts on a semiannual basis on each such date (assuming a 360-day year of twelve 30-day months) using a discount rate equal to the Treasury Yield plus 35 basis points over (b) the sum of (i) the sum of all amounts set forth in Column 2 of Schedule 3 to the Facility Lease corresponding to the dates in the Date column that are after the Termination Date and (ii) the product of divided by (x) the amount by which the amount in Column 1 of Schedule 3 to the Facility Lease corresponding to the date in the Date column following the Termination Date exceeds the amount in Column 2 of Schedule 3 to the Facility Lease corresponding to the date in the Date column following the Termination Date and (y) the number of days (measured assuming a 360-day year of twelve 30-day months) from and including the date in the Date column preceding the Termination Date to but excluding the Termination Date (A) number of days between the Closing and December 1, 2007, if the Termination Date occurs on or before 12/1/2007, or (B) 180, if the Termination Date occurs after December 1, 2007. The date of determination of a Special Event Amount shall be the third Business Day prior to the applicable Termination Date. SCHEDULE 4: Amounts Used in the Calculation of Termination Amounts and PVRR Amounts BRUCE MANSFIELD UNIT 1 LEASES: By the Numbers, Version 1.0 22
SCHEDULE 1-A: Rent Payment Rent Payment Date Basic Rent Calculated Cash Rent in $s 16 Dec 1 2016 2.05739884% $27,065,081.74 Jun 1 2017 3.57599638% $47,042,232.38 Dec 1 2017 2.00564120% $26,384,209.99 Jun 1 2018 5.44340352% $71,607,973.31 Dec 1 2018 1.88817613% $24,838,956.99 Jun 1 2019 5.47226453% $71,987,639.89 Dec 1 2019 1.76562655% $23,226,817.27 Jun 1 2020 3.49065421% $45,919,556.13 Dec 1 2020 1.70682882% $22,453,333.13 Jun 1 2021 5.46505172% $71,892,755.38 Dec 1 2021 1.57841251% $20,764,016.57 Jun 1 2022 5.49839800% $72,331,425.69 Dec 1 2022 1.44439020% $19,000,953.08 Jun 1 2023 3.41138589% $44,876,781.38 Dec 1 2023 1.37724868% $18,117,706.39 Jun 1 2024 5.49596965% $72,299,480.75 Dec 1 2024 1.23644703% $16,265,460.68 Jun 1 2025 5.53566719% $72,821,701.88 Dec 1 2025 1.08938754% $14,330,893.09 Jun 1 2026 3.33632148% $43,889,309.07 Dec 1 2026 1.01259849% $13,320,733.14 Jun 1 2027 5.74785790% $75,613,070.67 Dec 1 2027 0.85041586% $11,187,220.64 Jun 1 2028 5.81025751% $76,433,937.54 Dec 1 2028 0.68054128% $8,952,520.54 Jun 1 2029 2.89591184% $38,095,720.26 Dec 1 2029 0.60466484% $7,954,365.97 Jun 1 2030 5.84237943% $76,856,501.40 Dec 1 2030 0.42527311% $5,594,467.76 Jun 1 2031 4.85644636% $63,886,551.87 Dec 1 2031 1.64466237% $21,635,533.48 Jun 1 2032 3.30857871% $43,524,352.93 Dec 1 2032 0.17378573% $2,286,151.28 Jun 1 2033 6.42754680% $84,554,378.15 Dec 1 2033 0.00338967% $44,591.11 16 As % of $1,315,500,000.00 BRUCE MANSFIELD UNIT 1 LEASES: By the Numbers, Version 1.0 23
Jun 1 2034 3.78327643% $49,769,001.44 Dec 1 2034 0.00000000% $0.00 Jun 1 2035 4.13994168% $54,460,932.80 Dec 1 2035 0.00000000% $0.00 Jun 1 2036 5.00695850% $65,866,539.07 Dec 1 2036 0.00000000% $0.00 Jun 1 2037 0.37836650% $4,977,411.31 Dec 1 2037 0.00000000% $0.00 Jun 1 2038 0.00000000% $0.00 Dec 1 2038 1.78980960% $23,544,945.29 Jun 1 2039 0.00000000% $0.00 Dec 1 2039 0.00000000% $0.00 Jun 1 2040 0.00000000% $0.00 Jun 13 2040 9.20522065% $121,094,677.65 TOTAL CASH RENT from 12/1/16 $1,676,769,889.09 BRUCE MANSFIELD UNIT 1 LEASES: By the Numbers, Version 1.0 24
SCHEDULE 1-B: Allocated Rent From and Including To and Excluding Allocated Rent Dollar Equivalent 17 Dec 1 2016 Jun 1 2017 6.26837067% $82,460,416.16 Jun 1 2017 Dec 1 2017 0.00000000% $0.00 Dec 1 2017 Jun 1 2018 7.56559957% $99,525,462.34 Jun 1 2018 Dec 1 2018 0.00000000% $0.00 Dec 1 2018 Jun 1 2019 7.92559226% $104,261,166.18 Jun 1 2019 Dec 1 2019 0.00000000% $0.00 Dec 1 2019 Jun 1 2020 7.92559226% $104,261,166.18 Jun 1 2020 Dec 1 2020 0.00000000% $0.00 Dec 1 2020 Jun 1 2021 7.92559226% $104,261,166.18 Jun 1 2021 Dec 1 2021 0.00000000% $0.00 Dec 1 2021 Jun 1 2022 7.92559226% $104,261,166.18 Jun 1 2022 Dec 1 2022 0.00000000% $0.00 Dec 1 2022 Jun 1 2023 7.92559227% $104,261,166.31 Jun 1 2023 Dec 1 2023 0.00000000% $0.00 Dec 1 2023 Jun 1 2024 7.92559221% $104,261,165.52 Jun 1 2024 Dec 1 2024 0.00000000% $0.00 Dec 1 2024 Jun 1 2025 7.92559252% $104,261,169.60 Jun 1 2025 Dec 1 2025 0.00000000% $0.00 Dec 1 2025 Jun 1 2026 7.92559097% $104,261,149.21 Jun 1 2026 Dec 1 2026 0.00000000% $0.00 Dec 1 2026 Jun 1 2027 7.92559873% $104,261,251.29 Jun 1 2027 Dec 1 2027 0.00000000% $0.00 Dec 1 2027 Jun 1 2028 7.92555994% $104,260,741.01 Jun 1 2028 Dec 1 2028 0.00000000% $0.00 Dec 1 2028 Jun 1 2029 7.92575387% $104,263,292.16 Jun 1 2029 Dec 1 2029 0.00000000% $0.00 Dec 1 2029 Jun 1 2030 7.92478421% $104,250,536.28 Jun 1 2030 Dec 1 2030 0.00000000% $0.00 Dec 1 2030 Jun 1 2031 7.92963252% $104,314,315.80 Jun 1 2031 Dec 1 2031 0.00000000% $0.00 Dec 1 2031 Jun 1 2032 7.90539097% $103,995,418.21 Jun 1 2032 Dec 1 2032 0.00000000% $0.00 Dec 1 2032 Jun 1 2033 8.02659874% $105,589,906.42 Jun 1 2033 Dec 1 2033 0.00000000% $0.00 17 Expressed as a percentage of $1,315,500,000.00 BRUCE MANSFIELD UNIT 1 LEASES: By the Numbers, Version 1.0 25
Dec 1 2033 Jun 1 2034 7.42055987% $97,617,465.09 Jun 1 2034 Dec 1 2034 0.00000000% $0.00 Dec 1 2034 Jun 1 2035 6.48665055% $85,331,887.99 Jun 1 2035 Dec 1 2035 0.00000000% $0.00 Dec 1 2035 Jun 1 2036 6.47420017% $85,168,103.24 Jun 1 2036 Dec 1 2036 0.00000000% $0.00 Dec 1 2036 Jun 1 2037 6.53645209% $85,987,027.24 Jun 1 2037 Dec 1 2037 0.00000000% $0.00 Dec 1 2037 Jun 1 2038 6.22519247% $81,892,406.94 Jun 1 2038 Dec 1 2038 0.00000000% $0.00 Dec 1 2038 Jun 1 2039 7.78149059% $102,365,508.71 Jun 1 2039 Dec 1 2039 0.00000000% $0.00 Dec 1 2039 Jun 1 2040 0.00000000% $0.00 Jun 1 2040 Jun 13 2040 2.91805897% $38,387,065.75 TOTAL $2,323,760,119.99 BRUCE MANSFIELD UNIT 1 LEASES: By the Numbers, Version 1.0 26
SCHEDULE 1-C: Section 467 Loan Principal Balance; Section 467 Interest Calculated 467 Loan Balance in Dollars Calculated Section 467 Interest in $s Rent Payment Date 467 Loan Principal Balance Section 467 Interest Jul 13 2007 0.00000000% $0.00 0.00000000% $0.00 Oct 13 2007 0.00000000% $0.00 0.00000000% $0.00 Dec 1 2007 1.97734850% $26,012,019.52 0.00000000% $0.00 Jun 1 2008 5.83716977% $76,787,968.32 0.05536576% $728,336.57 Dec 1 2008 2.47625924% $32,575,190.30 0.16344075% $2,150,063.07 Jun 1 2009 6.37442956% $83,855,620.86 0.06933526% $912,105.35 Dec 1 2009 3.00418276% $39,520,024.21 0.17848403% $2,347,957.41 Jun 1 2010 6.94868493% $91,409,950.25 0.08411712% $1,106,560.71 Dec 1 2010 3.56296728% $46,870,834.57 0.19456318% $2,559,478.63 Jun 1 2011 7.55688174% $99,410,779.29 0.09976308% $1,312,383.32 Dec 1 2011 4.15442728% $54,651,490.87 0.21159269% $2,783,501.84 Jun 1 2012 11.00919628% $144,825,977.06 0.11632396% $1,530,241.69 Dec 1 2012 7.57107916% $99,597,546.35 0.30825750% $4,055,127.41 Jun 1 2013 15.20509556% $200,023,032.09 0.21199022% $2,788,731.34 Dec 1 2013 11.72423656% $154,232,331.95 0.42574268% $5,600,644.96 Jun 1 2014 19.64624116% $258,446,302.46 0.32827862% $4,318,505.25 Dec 1 2014 16.11803445% $212,032,743.19 0.55009475% $7,236,496.44 Jun 1 2015 24.34688976% $320,283,334.79 0.45130496% $5,936,916.75 Dec 1 2015 21.85444625% $287,495,240.42 0.68171291% $8,967,933.33 Jun 1 2016 23.01955767% $302,822,281.15 0.61192449% $8,049,866.67 Dec 1 2016 25.72150412% $338,366,386.70 0.64454761% $8,479,023.81 Jun 1 2017 23.74933194% $312,422,461.67 0.72020212% $9,474,258.89 Dec 1 2017 26.41995444% $347,554,500.66 0.66498129% $8,747,828.87 Jun 1 2018 25.03751711% $329,368,537.58 0.73975872% $9,731,525.96 Dec 1 2018 27.62674372% $363,429,813.64 0.70105048% $9,222,319.06 Jun 1 2019 25.94696481% $341,332,322.08 0.77354882% $10,176,034.73 Dec 1 2019 28.43910637% $374,116,444.30 0.72651501% $9,557,304.96 Jun 1 2020 24.80046330% $326,250,094.71 0.79629498% $10,475,260.46 Dec 1 2020 27.20170510% $357,838,430.59 0.69441297% $9,135,002.62 Jun 1 2021 25.50281229% $335,489,495.67 0.76164774% $10,019,476.02 Dec 1 2021 27.79530355% $365,647,218.20 0.71407874% $9,393,705.82 Jun 1 2022 26.14637778% $343,955,599.70 0.77826850% $10,238,122.12 Dec 1 2022 28.32286656% $372,587,309.60 0.73209858% $9,630,756.82 Jun 1 2023 24.60170044% $323,635,369.29 0.79304026% $10,432,444.62 Dec 1 2023 26.66779673% $350,814,865.98 0.68884761% $9,061,790.31 BRUCE MANSFIELD UNIT 1 LEASES: By the Numbers, Version 1.0 27
Jun 1 2024 24.9848724823% $328,675,997.50 0.7466983084% $9,822,816.25 Dec 1 2024 26.9208959447% $354,144,386.15 0.6995764295% $9,202,927.93 Jun 1 2025 25.2847556996% $332,620,961.23 0.7537850865% $9,916,042.81 Dec 1 2025 27.0821163968% $356,265,241.20 0.7079731596% $9,313,386.91 Jun 1 2026 23.2511461708% $305,868,827.88 0.7582992591% $9,975,426.75 Dec 1 2026 24.9147767562% $327,753,888.23 0.6510320928% $8,564,327.18 Jun 1 2027 23.4346496824% $308,282,816.57 0.6976137492% $9,177,108.87 Dec 1 2027 24.9412357313% $328,101,956.05 0.6561701911% $8,631,918.86 Jun 1 2028 23.5242878994% $309,462,007.32 0.6983546005% $9,186,854.77 Dec 1 2028 24.8635092419% $327,079,464.08 0.6586800612% $8,664,936.21 Jun 1 2029 20.5298454695% $270,070,117.15 0.6961782588% $9,158,224.99 Dec 1 2029 21.7093459822% $285,586,446.40 0.5748356731% $7,561,963.28 Jun 1 2030 20.2348028887% $266,188,832.00 0.6078616875% $7,996,420.50 Dec 1 2030 21.2266504844% $279,236,587.12 0.5665744809% $7,453,287.30 Jun 1 2031 18.7478105389% $246,627,447.64 0.5943462136% $7,818,624.44 Dec 1 2031 20.9174115993% $275,168,549.59 0.5249386951% $6,905,568.53 Jun 1 2032 16.9062868667% $222,402,203.73 0.5856875248% $7,704,719.39 Dec 1 2032 17.5534486323% $230,915,616.76 0.4733760323% $6,227,261.70 Jun 1 2033 16.4458932518% $216,345,725.73 0.4914965617% $6,465,637.27 Dec 1 2033 16.9097679320% $222,447,997.15 0.4604850110% $6,057,680.32 Jun 1 2034 13.7459579943% $180,828,077.42 0.4734735021% $6,228,543.92 Dec 1 2034 14.1308448181% $185,891,263.58 0.3848868238% $5,063,186.17 Jun 1 2035 12.1797996012% $160,225,263.75 0.3956636549% $5,204,955.38 Dec 1 2035 12.5208339900% $164,711,571.14 0.3410343888% $4,486,307.38 Jun 1 2036 11.4041756749% $150,021,931.00 0.3505833517% $4,611,923.99 Dec 1 2036 11.7234925938% $154,222,545.07 0.3193169189% $4,200,614.07 Jun 1 2037 5.8936647948% $77,531,160.38 0.3282577926% $4,318,231.26 Dec 1 2037 6.0586874091% $79,702,032.87 0.1650226143% $2,170,872.49 Jun 1 2038 0.0031381884% $41,282.87 0.1696432475% $2,231,656.92 Dec 1 2038 1.7930356577% $23,587,384.08 0.0000878693% $1,155.92 Jun 1 2039-5.9382499291% -$78,117,677.82 0.0502049984% $660,446.75 Dec 1 2039-6.1045209271% -$80,304,972.80-0.1662709980% -$2,187,294.98 Jun 1 2040-6.2754475131% -$82,553,512.03-0.1709265860% -$2,248,539.24 Jun 13 2040 0.0000000000% $0.00-0.0117141687% -$154,099.89 BRUCE MANSFIELD UNIT 1 LEASES: By the Numbers, Version 1.0 28