Portfolio Group Staff Level

Rick: As a follow up to our discussion on headcount reduction, as you know, there are several important fiduciary functions that the Portfolio group performs related to the existing asset portfolio that should be performed until the assets are sold:

Review and audit of contractually required fundings for capital and operating expenditures (we usually recover $$$))
Maintenance of compliance system to ensure compliance with reporting requirements and transaction covenants
Maintenance of the PortRAC system that is used for asset management, data rooms and Board reporting
Post transaction reviews as directed by Management and the Board

In addition to our obligation to management and shareholders, JEDI II and CalPERS look to RAC to make sure that the Commercial Teams are maximizing value.

In my opinion, some staff should be maintained to perform these functions or value and the ability to sell these assets will be compromised.

I am available to discuss at your convenience.