Amdahl Corporation and Consolidated Subsidiaries - Page 9

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          responsible for maintenance of the residences until they move               
          out.  Thereafter, the RSC pays for the maintenance costs of the             
          residences, including the costs of insurance, general property              
          maintenance, utilities, snow removal, mortgage payments, and                
          property taxes.  However, employees remain legally responsible              
          for the mortgage payments and taxes.  In assigned sales,                    
          employees may elect to deliver possession of the residences                 
          directly to the third-party buyers rather than the RSC.  If an              
          employee delivers possession to the third-party buyer, the                  
          employee remains responsible for the maintenance costs until the            
          third-party sale closes.                                                    
               On the day the employees move out of the residences, the RSC           
          pays them their equity in the residences.  The RSC may pay up to            
          a specified percentage (typically 90 percent) of the equity prior           
          to the vacate date if an employee needs the money to purchase a             
          new residence.  In such a case, the RSC pays the balance of the             
          employee's equity on the vacate date.  In a regular sale, the               
          equity payment is the appraised value of the residence as of the            
          vacate date less the prorated unpaid balances of all loans                  
          secured by the property, prorated accrued interest, prorated real           
          property taxes, prorated owner's dues, fees, and maintenance                
          charges, and certain estimated costs of repairs recommended by a            
          recognized termite or pest control company.  In an assigned sale,           
          the equity payment is computed using the appraised value as of              
          the estimated closing date for the third-party sales contract.              

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Last modified: May 25, 2011