1. GLOBAL RAIL CONSORTIUM, LLC Nov. 10, 2004 Funding and Equity Contributions FLORIDA HIGH SPEED RAIL AUTHORITY

2. GLOBAL RAIL CONSORTIUM, LLC I. Global Rail Consortium, LLC II. Experience III. Technology : “KTX-R Rolling Stock” IV.Funding Plan V.Closing

3. GLOBAL RAIL CONSORTIUM, LLC  State & Federal Participation TIFIA : Tax Credit Bonds: Tax-Exempt Bonds: Grants :  Equity Participation: $ 400 million IV. FUNDING PLAN “ Funding Sources ” “ Funding Sources ” Sources of Funds $ 2 billion

4. GLOBAL RAIL CONSORTIUM, LLC Sources of Funds Amount ($ millions) GRC / Partner Equity 400 Grants0 Tax-Exempt Project Revenue Bonds 1,200 TIFIA Loans800 Project Fund Interest 19 Total2,419 Uses of Funds Amount ($ millions) Project Equipment Fund0 Project Infrastructure Fund 2,369 Capitalized Interest Fund0 Debt Service Reserve Fund 0 Costs of Issuance50 Total2,419 Fund Appropriations for Project Infrastructure IV. FUNDING PLAN “ Funding Sources ” “ Funding Sources ”

5. GLOBAL RAIL CONSORTIUM, LLC IV. FUNDING PLAN “ Equity Contribution ” “ Equity Contribution ” Sweat Equity ($ millions) Investment in Project Development prior to Selection : 6 Project Development Investment prior to Financial Close : 5 Project Revenue Bonds Costs of Issuance : 30 Investment in TIFIA Loans Costs of Issuance : 20 Operational Cash Guarantee : 50 Total Sweat / Soft Equity : 111 Grand Total - All Equity : 511 Member Equity Contributions GRC Equity Contribution : 250 Equity by Partners : 150 Total Equity Contributions : 400

6. GLOBAL RAIL CONSORTIUM, LLC Reduces amount of debt required for the Project Minimizes Risk to the State of Florida Total equity invested equals 21% of total project cost ($511 / $2,400) Equity participants share the financial risk(s) of the project Emphasizes and Enhances GRC’s overall commitment to the project and the public / private partnership Puts equity investment at risk, dependent upon financial success, with repayment after operating costs and debt service IV. FUNDING PLAN “ Equity Contribution ” “ Equity Contribution ” What Does Equity Do?

7. GLOBAL RAIL CONSORTIUM, LLC With Equity Investment in Project ($400 million) $ 26 Million / Year savings $ 780 Million over life of Bonds Assumptions: 5% interest rate 30 year bonds What Does Equity Do? IV. FUNDING PLAN “ Equity Contribution ” “ Equity Contribution ”

8. GLOBAL RAIL CONSORTIUM, LLC Project Bonds are retired by State of Florida participation (Fixed at $75 million / year) Balance of debt is serviced from fare box GRC equity participation reduces debt and enhances overall project success GRC pro forma financial statement shows sufficient revenues to amortize TIFIA debt IV. FUNDING PLAN “ Amortization ” “ Amortization ” How is Project & TIFIA Debt Retired?

9. GLOBAL RAIL CONSORTIUM, LLC Bring High Speed Rail to Florida Private Sector Participation State Contribution Fixed State Risk Mitigated GRC’s Commitment V. CLOSING