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EDA Agenda Memo <br /> April 9, 1998 <br /> Page 3 <br /> • $3.00 per square foot cash rent in year one <br /> • $4.00 per square foot cash rent in year two <br /> • $8.47 per square foot of company stock provided up front for <br /> the full two year lease period <br /> EDA - $2.97/s.f. = 53,814 shares <br /> - Larry Hickman $3.00/s.f. = 54,508 shares <br /> - Genesis Portfolio Partners - $2.50/s.f. = 45,290 shares <br /> • MAS Technologies share value equals $.25 per share <br /> Likely the most significant issue in this lease arrangement concept is <br /> the request being made by MAS Technologies that the EDA complete <br /> improvements to the space in the amount of approximately$9,600. <br /> These improvements include constructing a hanging ceiling and two <br /> large offices in the space. Staff has proposed that the cost of these <br /> improvements be split between the EDA ($7,500) and MAS <br /> Technologies ($2,100). This proposal is being currently considered by <br /> MAS Technologies, but staff feels it may not be acceptable. Staff <br /> would recommend that the EDA agree to pay for the total cost of these <br /> improvements if necessary,but also to continue negotiations with <br /> MAS Technologies for their financial participation. <br /> • An alternative which has been discussed and agreed to in concept by <br /> MAS Technologies is that the EDA pay the full cost of improvements <br /> of$9,600, but take shares of MAS Technologies stock to cover the <br /> $2,100 still in question. Staff would recommend proceeding with this <br /> concept. The $8.47 shown above as the dollar amount of stock being <br /> provided reflects this concept. <br /> Funds can be made available within the Business Incubator budget to <br /> cover this expense of up to $9,600 for additional leasehold <br /> improvements. <br /> Recommendation <br /> Staff recommends that a Business Incubator lease and Business <br /> Incubator Memorandum of Understanding be executed with the <br /> parameters as indicated in this memo with MAS Technologies, and <br /> that a maximum of$9,600 be spent on lease hold improvements to the <br /> space within which MAS Technologies intends to locate. <br /> Attachment <br /> • MAS Technologies Stock Calculation <br /> • Sublease <br /> • Memorandum of Understanding <br />