1. The City owes MFP $8,373,182.00 for outstanding lease payments since April 2001 to and including December 1, 2001;
2. MFP will give the City credit for $3,220,000.00 against amounts owing;
3. The City will pay MFP $5,153,182.00; and
4. It is to be noted that no late payment interest penalty will be charged by MFP on the sum of $8,373,182.00.
5. The City has a claim of $2,700,000.00 for payments to be made in 2004 and 2005 for computer leases that extend beyond 60 months to 63 and 66 months. This claim is being made by the City because the computer equipment has no useful value after five years. The City therefore should not be paying any amounts at that time. MFP is prepared to recognize the present value of those monies at $2,396,000.00;
6. MFP failed to pay, for a lengthy period time, for equipment that it had purchased from the City of Toronto. The City claims $460,000.00 for outstanding interest on the monies withheld. The interest claimed is at four percent, which is the percentage expressed in the Agreement with MFP. MFP is prepared to recognize this amount;
7. On the Oracle Leases, MFP is prepared to recognize the City’s claim of interest on amounts pre-paid by the City, but which will not have to be paid by MFP to Oracle until the future. This claim, at four percent, is $430,000.00; and
8. The total of these claims is $3,286,000.00. MFP is prepared to recognize these claims at the figure of $3,220,000.00.
9. MFP has a claim, by the provisions of the lease, for interest on the outstanding lease payments of $8,373,182.00. The interest rate is at two percent per month or 24 percent per annum. The interest claim is $1,300,000.00. MFP is prepared to forego all of this interest. The value that the City is thus obtaining is forgiveness of $1.3 million of interest and a credit against amounts owing of $3,220,000.00 for a total of $4.5 million.
10. Releases will be given to MFP by the City releasing all of its officers, directors, and employees and assigns from any further claim;
11. No Releases will be given in respect of any present or former City Employee or Councillor;
12. A Joint Statement will be issued setting out that against outstanding lease payments, a credit has been given of $3,220,000.00 and that no interest is being claimed by MFP on the outstanding payments. There will be no statement either absolving MFP from blame or lauding them for their conduct; and
13. MFP has agreed to co-operate with the City auditor or any investigator appointed by the City to submit to interviews. It will also provide copies of all expense reports for entertainment expenses with City Employees or Councillors.
14. The City will pay MFP $3,901,788.00 for equipment in its possession which was purchased by MFP for the City at the City’s request, but with respect to which no leases have been executed. No interest is being charged to the City for the past use of this equipment.
15. The City will pay various suppliers $1,662,574.86 for equipment currently in the City’s possession which MFP ordered at the City’s request, but with respect to which no leases have been executed. No interest is being charged to the City for the past use of this equipment.