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Possible Philip Morris Grant Scenario, Per Agreement Draft, For Illustrative Purposes Only
<br />3/5/2004
<br />
<br />Presumed Tax Rate 0.0056
<br />
<br />PM Grant
<br />
<br /> Est. Value of M&E As Written
<br /> Est. Cost of Grant
<br />CY TY FY M&E Threshold Grant
<br /> 2005 2006
<br /> 2004 80,000,000 74,666,667 -~
<br />
<br />Total 74,666,667 85.00% $355,413
<br />
<br />2006 2007
<br />
<br />2004 80,000,000 69,333,333...~
<br />2005 30,000,000 28,000,000/
<br />
<br />2004
<br />2005
<br />2006
<br />
<br />Sum of Cumulative
<br />Value of New PP
<br /> 74,666,667
<br /> 28,000,000
<br /> 9,333,333
<br />
<br />$112,000,000 > $100M,
<br />85% thmshold
<br />Grant, 06-08
<br /> $1,370,880
<br />
<br />Total 97,333,333 $463,307
<br />
<br />2007 2008
<br />
<br />2004 80,000,000 64,000,000
<br />2005 30,000,000 26,000,000.~
<br />2006 10,000,000 g,333,333
<br />
<br />Total 99,333,333 $472,827
<br />
<br />2008 2009
<br />
<br />2004 80,000,000 58,666,667
<br />2005 30,000,000 24,000,000
<br />2006 10,000,000 8,666,667
<br />
<br />Total 91,333,333 $434,747
<br />
<br />2009 2010
<br />
<br />2004 80,000,000 53,333,333
<br />2005 30,000,000 22,000,000
<br />2006 10,000,000 8,000,000
<br />
<br />Total 83,333,333 $396,667
<br />
<br />2010 2011
<br />
<br />2004 80,000,000 48,000,000
<br />2005 30,000,000 20,000,000
<br />2006 10,000,000 7,333,333
<br />
<br />Total 75,333,333 $358,587
<br />
<br />It appears likely Philip Morris would generate the 85% threshold based upon historical
<br />County interpretation of the grant, but the above scenario could possibly occur given the
<br />staging in of assets over a multiple year period. You will notice that the difference in this
<br />case of grant dollars at the two threshold levels is $80,640.
<br />
<br />Threshold under Current
<br />Interpretation
<br /> $99,333,333 >$50M,
<br />80% threshold
<br />Grant, 06-08
<br /> $1,29O,24O
<br />
<br />2_
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