Discussion and possible action on any and all matters regarding a non-binding forbearance term sheet. (Kay Marion Macuil, General Counsel)

The attached term sheet is not binding and is for discussion purposes. The idea presented in the term sheet is that starting September 1, 2024, and ending April 30, 2025 (8 months), revenue from the federal agencies for the detainees will go to LaSalle's operational cost plus 6% of that cost. Revenue would not go to the interest and principal payments on the debt service of the bonds during the 8 months.

At the end of the 8 months, any excess received during this 8-month period will go to debt service, and the payments on the debt would resume, including the amounts that were part of the forbearance. The forbearance could end earlier if the Parties mutually agree to end it or the bondholders direct the Trustee to terminate the forbearance after 75 days' notice from the trustee.

To make this arrangement,

• the operating agreement would need to be extended (which the 2nd Amendment does),
• LaSalle's notice of non-renewal would be rescinded,
• bondholders would be notified,
• a binding forbearance agreement would need to be in place,
• the Trustee at U.S. Bank would file a trust instruction petition ("TIP") in a specialized court in Minnesota, and
• once a Court order issues, the forbearance would be in place. (Although it is highly unlikely, it is possible that the Court does not order the forbearance.)