4. Benefits & Risks of Leasing vs. Ownership Advantage Disadvantage Leasing -Location -Flexibility -Capital Preservation/Availability of cash -Source of Financing -Long Term cost -Loss of salvage value -Control of your environment -Annual escalators Ownership -Control -Debt Reduction -Equity buildup -Appreciation -Tax advantage/depreciation/ Sales -Fixed long term cost during inflationary times -Capital Outlay -Spatial inflexibility -Management of property -Financing -Financial Liabilities -Capital & repair & Maintenance

6. A Sample Case Study RENT VS. OWN COMPARISON SAMPLE PROPERTY SIZE 2500 Sq. ft 8 PRIVATE PARKING SPACE RENT OWN LEASE ASSUMPTION: Rent per square foot per month $1.33 Rent per month (Total) $3,333 PURCHASE ASSUMPTION: Purchase Price: $625,000 START - UP COST Pre-paid Rent and Security Deposit $9,000 Total Start-up cost $9,000 START - UP COST Cash Down payment (10%) $62,500 Loan Fee and Cost $12,500 Total Start-Up Cost $75,000 MONTHLY COST: Per sq.ft. Amount Rent Payment $1.33 $3,333 NNN Operating cost $0.50 $1,250 Reserve for repairing ---- ---- Annual Depreciation: At 40% Tax bracket $0.00 $0.00 Total Monthly Cost $1.85 $4,583 MONTHLY COST: Per sq.ft. Amount Mortgage Payment $1.50 $3,784 Operating cost $0.50 $1,250 Reserve for repairing $0.06 $150 Annual Depreciation: At 40% Tax bracket ($0.27) $675 Total Monthly Cost $1.45 $4,509 ADDITIONAL MONTHLY OWNERSHIP BENEFITS: Annual Appreciation: At 2% $0.00 Average monthly Principal Payment $0.00 Total Ownership Benefits $0.00 TOTAL EFFECTIVE MONTHLY COST $4,583 ADDITIONAL MONTHLY OWNERSHIP BENEFITS: Annual Appreciation: At 2% $1,041 Average monthly Principal Payment $950 Total Ownership Benefits $1,991 TOTAL EFFECTIVE MONTHLY COST $2,518 IMPORTANT NOTES: The Rent amount shown above is for the starting year. Most leases provide for rent increases of about 3%per year. After 10 years, the mortgage payment would remain the same, but the rent will increase by 34% to: $4,873 per month. Calculations based upon the prevailing interest rates as of October 2009.

7. A Sample Case Study LONG TERM COMPETITIVE ADVANTAGE OF OWNERSHIP Property Loan Loan Lease Value Balance Equity Payment Payment Years 5 $690,000 $508,481 $181,519 $3,784/$45,408 $3,863/$46,356 Year 10 $761,900 $429,960 $331,940 $3,784/$45,408 $4,479/$53,748 Year 15 $841,167 $323,879 $517,288 $3,784/$45,408 $5,192/$62,304 Year 20 $928,717 $181,799 $746,918 $3,784/$45,408 $6,019/$72,228 SBA 504 FINANCING PROGRAM Purchase Price : $ 625,000 Note that interest rates vary from month to Cash Down Payment (10%): - $62,500 month and loan term differ from one lender to another Amount Financing: $562,500 The SBA 504 financing program combines a loan from a regular bank 50%of the total loan amount and a loan from the SBA for 40%of the total loan amount (total 90%). The buyer provides a 10% cash down payment SBA FINANCING: 1 St Mortgage by Bank 2 nd Mortgage by SBA Loan Amount: $312,500 $250,000 Interest Rates: 7% 5% Amortization in year: 30years of amortization 20years of amortization Percent of Total Loan Amount: 50% of total 40% of Total Loan Fee : 1%$3,125 2.15%$5,375 Monthly payment: $2,099 $1,685

9. How Can I Possibly Compare All These Factors? N Purchase N Lease N Differential 0 (initial investment) 0 (Lease CFAT) 0 (initial investment) 1 (CFAT) 1 (Lease CFAT) 1 CFAT 2 (CFAT) 2 (Lease CFAT) 2 CFAT 3 (CFAT) 3 (Lease CFAT) 3 CFAT 4 (CFAT) 4 (Lease CFAT) 4 CFAT 5 (CFAT) 5 (Lease CFAT) 5 CFAT 6 (CFAT) 6 (Lease CFAT) 6 CFAT 7 (CFAT) 7 (Lease CFAT) 7 CFAT 8 (CFAT) 8 (Lease CFAT) 8 CFAT 9 (CFAT) 9 (Lease CFAT) 9 CFAT 10 (CFAT) +SPAT 10 (Lease CFAT) 10 CFAT + SPAT