NOTICE OF HEARING ON PROPOSED AMENDMENT TO LEASE VALPARAISO COMMUNITY SCHOOLS

You are hereby notified that a public hearing will be held before the Board of School Trustees on November 16, 2010, at the hour of 6:00 p.m. (Local Time) at Valparaiso City Hall, 166 Lincolnway, Valparaiso, Indiana, upon a proposed second amendment to lease to be entered into between Valparaiso Middle School Building Corporation, as lessor, and Valparaiso Community Schools, as lessee.

The proposed second amendment to lease upon which hearing will be held is to the Lease Agreement executed October 18, 2000 which runs for a term of 25 years ending January 5, 2026. The term of the Lease Agreement would be extended by the proposed amendment to January 5, 2028. The proposed amendment provides for an additional annual rental of $240,000 per year from July 5, 2011 through January 5, 2025 and additional annual rental of not to exceed $3,740,000 from July 5, 2025 through July 5, 2027, payable on January 5 and July 5 of each year during the term of the lease, commencing July 5, 2011. After the sale by the Corporation of its bonds to pay for the cost of the renovations and other expenses incidental thereto, the increased annual rental shall be reduced to reflect the results of the bond sale, payable in semiannual installments.

The plans and the estimates for the cost of proposed renovations by the Building Corporation as well as a copy of the proposed second amendment to lease, are available for inspection by the public on all business days, during business hours, at the Administration Building of Valparaiso Community Schools, 3801 N. Campbell Street, Valparaiso, Indiana.

At such hearing all persons interested shall have a right to be heard upon the necessity for the execution of such second amendment to lease, and upon whether the lease rental provided for therein to be paid to the Lessor is a fair and reasonable rental for the additional work to be performed. Such hearing may be adjourned to a later date or dates, and following such hearing the Board of School Trustees may either authorize the execution of such second amendment to lease as originally agreed upon or may make modifications therein as may be agreed upon with the Lessor.

Dated this 21st day of September, 2010.

/s/Mark Maassel

Secretary, Board of School Trustees

Valparaiso Community Schools

(October 15, 2010)