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09/30/2005 10:36 FAX 8149398325 THE NEW ALBANY CO. 003/004 THE NEW ALBANY COMPANY ANALYSIS OF THE NACO AND GEORGETOWN CAPITAL ACCOUNTS FROM 1/1/2002 - 12/31/2004 As of 1/20/2005 SCHEDULE 1 100 % POSITIVE CASH FLOW APPLIED TO NACO'S INTEREST PAYMENT AND A REDUCTION OF NACO'S CAPITAL ACCOUNT: INTEREST ON GEORGETOWN CAPITAL ACCRUED INTEREST ONLY APPLIED FOR THE YEAR 2004 I NACO CAPITAL Cash Flow from Operations (1)(3) Interest Expense (2) (3) Capital Additions/ (Reductions)(3) Capital Account Balance (4) 2002 10,546,345 (4,875,000) (5,671,345) 75,000,000 69,328,655 2003 20,162,655 (4,506,363) (15,656,292) 53,672,363 2004 18,414,244 (3,488,704) (14,925,540) 38,746,822 Totals 49,123,244 (12,870,066) (36,253,178) II GEORGETOWN CAPITAL Cash Flow from Operations (1)(3) Interest Expense (2) (3) Capital Additions/ (Reductions)(3) Capital Account Balance (4) 2002 (650,000) 650,000 10,000,000 10,650,000 2003 (692,250) 692,250 11,342,250 2004 (737,246) 737,246 12,079,496 Totals (2,079,496) 2,079,496 III SUMMARY OF NACO & GEORGETOWN CAPITAL ACCOUNT ACTIVITY Cash Flow from Operations (1)(3) Interest Expense (2) (3) Capital Additions/ (Reductions)(3) NACO Capital Balance (4) Georgetown Capital Balance (4) 2002 10,546,345 (5,525,000) (5,021,345) 69,328,655 10,650,000 2003 20,162,655 (5,198,613) (14,964,042) 53,672,363 11,342,250 2004 18,414,244 (4,225,950) (14,188,294) 38,746,822 12,079,496 Total 49,123,244 (14,949,562) (34,173,682) (1) See page 2 of the Calculation of Estimated Performance Fee for detail of the Managed Cash Flows for years 2002-2004. Please note New Albany Country Club is not included until 1/1/2005 All Cash Flows are used to pay NACO Interest and any excess is applied as a NACO Capital Account reduction. (2) The Annual Interest rate is 6.5%. Interest is calculated on the previous Year's Ending Capital Account Balance. Interest Payments and Capital Additions /(Reductions) are applied at the end of Calendar Year. (3) Positive Cash flow from Managed Properties is applied in the following order: (i) Interest Expense for NACO if any, and the balance applied to reduce the NACO Capital Account until be Zero. If the Cash Flow is insufficient to pay the current interest expense then the unpaid portion of the interest will be added to the Capital Balance. Interest on Georgetown's Capital accrues and is added to the Capital Account. Interest for 2004 is based on 124 days and a 366 day year. (4) Capital Account Balance as of January 1, 2002 is $83,000,000. NACO is allocated $75,000,000 or 88.24% and Georgetown is allocated $10,000,000 or 11.76%. Thereafter, the Capital Account Balance is the sum of the Capital as of January 1, 2002 plus Additions and less any Reductions. The Capital Account Balance is as of the end of each Calendar Year. Prepared by Brent Bradbury 9/30/2005 I - 1 07/26/17 Page 2623 Public Records Request No.: 17-295 DOJ-OGR-00032936