City of Glendale

Sara,

Believe it or not, we are very close getting our signed ISDA from the City of Glendale. Steve Lins, the City attorney had a couple of questions which I will attempt to relay without having a copy of the documents.

1) I am assuming that he obtained a for legal opinion letter or document of some sort. This document references a confirmation and we are not sure what this references. Typically, it references a transaction, which in this case, there are no transactions yet. He feels this reference should be deleted. What is your opinion regarding this?

2) We sent him a couple of form documents to facilitate the documents required under the ISDA. One form ws a form resolution. They have already received City Council approval to enter into financial tranactions and to enter into an ISDA with us. Steve is going to get a certified copy of this Resolution. Will this suffice?

When you return, I may try to do one last conference call to alleviate any unanswered questions. I think we will have an executed ISDA with the City of Glendale by the end of next week. I am going to be out there meeting with them on Wednesday.

Thanks for your help,

Kim