Six Peak IC Weekly Meeting

• The meeting covered MRK's request for short-term financing to cover its portion of the GP loan on the Francis transaction and operational closing items tied to the deal and related assets.
• Participants evaluated pricing, repayment options, structural approvals, and remaining closing logistics.
• On the bridge request, MRK sought roughly $2.6M while the total GP loan is projected near $5.1M with ~$3.5M held as underwriting contingency.
• The existing deal documents include a member-loan/fallback mechanism that carries a 20% annualized default cost; the group debated relying on that provision versus negotiating a more punitive short-term bridge to deter prolonged usage.
• Proposed terms discussed included a small upfront fee plus a 20% annualized rate compounded monthly, a defined short term (example 60 days), escalating penalties for extended outstanding balances, and possible cross-collateralization with related assets.
• The agreement also allows diversion of MRK fees and distributions toward loan repayment, and MRK has about $700k of in-deal cash that could be applied at closing.
• Participants expressed concern about precedent risk and potential distraction or delayed cash returns if a bridge stretched beyond the short term; emphasis was placed on keeping any concession simple, executable, and sufficiently punitive.
• Anthony committed to provide a decision imminently.
• On closing and structural items, Bob Kennedy reported most items are resolved and said matters under control should close by the end of the week, though MRK's outstanding JVA comments could affect timing.
• Bob will confirm signature authority for Francis Venture LP to finalize GMP/bond execution; the bonding agent requires an executed GC contract signed by the authorized signer.
• Ivan stressed the need for Cal SPHA to confirm comfort with trust-structure changes by the end of September, and Cal HFA will not accept broad open-ended permitted transfers.
• Chris Aiello reported progress on a refinance with Loanoke expected to close in one to two weeks and indicated a likely capital call for the paydown portion.
• The group also reviewed an unsolicited offer related to Melrose and discussed coordinating calls with MF1 and Paul; Patrick and Jack proposed a Friday call to evaluate that offer and tactical options including vendor finance with an adjacent Normandy asset.

None.

None.