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Charting A New Course In Healthcare Management - page 32 / 37

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Prime’s Proposal for San Leandro Facility Lease

Prime will lease the facility for an initial term of Ten (10) Years – with options to extend the lease.

Prime will make an annual lease payment to the District.

Prime will have an option to buy the facility at the end of five (5) Years.

Prime will spend no less than $20 Million for working capital, equipment and other capital improvements at San Leandro Hospital during first year of lease.

Prime will provide a Security Deposit equal to two (2) years of lease payments.

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