April 27, 2011

Via Email Mr. Patrick J. Blanchette Chief Economic Development Director City of Lawrence - Office of the Mayor 200 Common Street Lawrence, MA 01840 Re: Standard Parking Management Services Proposal Summary Dear Mr. Blanchette: SP Plus Municipal Services is pleased to have been notified to commence contract negotiations to provide parking management services. We welcome the opportunity to partner with the City of Lawrence to launch an on-street parking program. As outlined during our proposal presentation in January, SP Plus Municipal Services is pleased to offer the following value-add services and financial return to the City of Lawrence: Upfront payment of Year 1s base rent of $400,000 - Upon City Council approval and contract execution, SP Plus Municipal Services will advance payment of Year 1s base rent of $400,000. In subsequent years, base rent will be paid out on a monthly basis. Payment of percentage rent at the end of each contract year At the close of each contract year, we will calculate the percentage rent and process payment annually. Lease office space from the City of Lawrence We will lease office space directly from the City or local landlord in the immediate vicinity of City Hall. This office will serve as SP Plus Municipal Services base of on-street parking operation. Snow removal around parking meter access walkways and sidewalks We will remove snow, in and around parking meter access walkways and sidewalks, to ensure a safe and user friendly parking experience. We will collaborate with the City of Lawrences Department of Public Works to plan logistics, share equipment and resources. Parking Program Branding, Marketing and Consulting services As part of our partnership with the City of Lawrence, SP Plus Municipal Services will provide complimentary services related to the roll out and implementation of the citys parking program. This will be in conjunction with the citys vision. This type of consulting service is valued at $25,000 - $30,000.

Thank you and we look forward to our meeting on April 28, 2011.

Sincerely yours,

Michael V. Tepper Senior Vice President

Proposed Concession Rent to the City of Lawrence

SP Plus Municipal Services is pleased to design, implement and operate a comprehensive on-street parking management program on behalf of the City of Lawrence. Under this arrangement, SP Plus Municipal Services will invest captial resources to provide the City of Lawrence with approximately 120 multi-space meters for Phase 1 of this program, meter signs and poles, enforcement tools and vehicles, collection equipment, and back office systems and databases to effectively implement and operate an on-street parking management program.

Year 1 Meter Collections Revenue Violation Revenue Net Gross Revenue $1,090,800 $999,996 $2,090,796

Year 2 $1,123,524 $1,029,996 $2,153,520

Year 3 $1,157,230 $1,060,896 $2,218,125

Year 4 $1,191,947 $1,092,723 $2,284,669

Year 5 $1,227,705 $1,125,504 $2,353,209

5 Year Total $5,791,205 $5,309,115 $11,100,320

City of Lawrence Compensation Structure

Annual Base Rent (Guarantee) Revenue Threshold (90% over Revenue Threshold) Revenue Percentage Rent Total Rent to City of Lawrence ($1,400,000) $621,716 $1,021,716 ($1,442,000) $640,368 $1,040,368 ($1,485,260) $659,579 $1,059,579 ($1,529,818) $679,366 $1,079,366 ($1,575,712) $699,747 $1,099,747 NA $3,300,776 $5,300,776 $400,000 $400,000 $400,000 $400,000 $400,000 $2,000,000