SIXTH AMENDMENT TO CONDOMINIUM OFFERING PLAN FOR 88 LEXINGTON AVENUE CONDOMINIUM

Transcription

1 SIXTH AMENDMENT TO CONDOMINIUM OFFERING PLAN FOR 88 LEXINGTON AVENUE CONDOMINIUM This Sixth Amendment (this Amendment ) modifies and supplements the terms of the Condominium Offering Plan for 88 Lexington Avenue Condominium, covering the premises located at 88 Lexington Avenue, New York, New York, first accepted for filing on May 18, 2015 (together with any amendments, the Plan ) and is incorporated into and should be read in conjunction with the Plan. The terms of this Amendment are as follows: 1. Purpose of Amendment The purpose of this amendment is (i) to update and/or revise certain information set forth in the Plan; and (ii) to declare the Plan effective. 2. Discount to Tenants Each tenant in occupancy on the date this Amendment is accepted for filing shall have the right, for a period of thirty (30) days from the date of acceptance of this Amendment, to purchase the Residential Unit in which he or she resides ( Tenant s Apartment Unit ) in its current, as-is condition, as an Unrenovated Unit, at a discount equal to sixty percent (60%) of the Purchase Price offered to non-tenant Purchasers. Attached hereto as Exhibit B is a schedule setting forth for each occupied Residential Unit as of the date hereof the Purchase Prices for the applicable tenants. Accordingly, as a result of this Amendment, the total offering price to tenants in occupancy for the Residential Units, other than the Resident Manager s Unit, offered hereunder (the Total Price ) is $115,715,200. For purposes of calculating Sponsor s initial contribution to the reserve fund, the total price is $115,715, Reserve Fund Credit Pursuant to the Plan, Sponsor intends to take a credit against its mandatory initial contribution to the reserve fund (the Reserve Fund Credit ) for the following capital replacements begun after the Plan was submitted for filing to the New York State Department of Law: ($1,230,760); a) Windows: New windows on east, west and south facades b) Hot Water Heater: New high efficiency hot water boilers, storage tanks and pumps ($125,000); c) Intercom: New intercom wiring, head-end equipment and control stations ($50,000); KL

2 d) Resurfacing of Exterior Walls (Masonry): New stucco coating at west façade; patching, repairs and cleaning of limestone on south and east facades ($65,000); and e) Water Sprinkler System: New standpipe, hose valve and racks in Stair B; expanded sprinkler coverage on Cellar and 1 st Floor ($150,000). The aforementioned work will cost approximately $1,620,760. The Reserve Fund Credit shall nevertheless in no event exceed the lesser of the actual cost of the capital replacements or one percent (1%) of the Total Price. The Reserve Fund Credit is being taken in accordance with Section W of the Plan, entitled Reserve Fund, and with the Reserve Fund Law. 4. Residential Amenities Sponsor reserves the right to create a category of special Limited Common Elements (the Special Residential Limited Common Elements ), for the use of only Residential Unit Owners of Residential Units purchased under the Plan or the offering plan for the 90 Lexington Property and the tenants and occupants of such Residential Units, and to amend the Declaration accordingly. The Special Residential Limited Common Elements are anticipated to include the following: the lounge, the viewing/screening room, and the children s playroom on the Cellar floor of the Building. For the avoidance of doubt, the rights of purchasers with respect to such amenities remain unchanged from Special Risk #30 in the Plan. 5. Storage Bins Sponsor hereby offers Purchasers the opportunity to purchase the rights to a Storage Bin pursuant to a license agreement (each such license being a Storage Bin License ) to be issued by Sponsor and/or the Condominium Board. Sponsor will initially offer Storage Bin Licenses for 47 Storage Bins hereunder, located on the Cellar Floor as indicated on the Floor Plan annexed hereto as Exhibit D, in a former back-of-house area which was previously inaccessible to Purchasers. The rules and regulations governing the use of the Storage Bins are contained in the By-Laws. Subject to the certificate of occupancy for the Building, a Storage Bin may only be used by occupants of the Residential Units of the Building or the 90 Lexington Property and only for storage purposes. In no event may any of the Storage Bins be used as a dwelling space or for storing property which (a) constitutes an inflammable, combustible, explosive or other dangerous item; (b) has an objectionable odor; or (c) is deemed by Sponsor or the Condominium Board, in its sole and absolute discretion, not to be in conformity with the general welfare of the Building. The Rules and Regulations of the Condominium which are applicable to a Residential Unit and/or the Residential Unit Owner shall also be applicable to a Storage Bin and/or a licensee (each a Storage Bin Licensee and collectively the Storage Bin Licensees ) thereof. Notwithstanding the foregoing, Sponsor or its designee shall have the right to use any unlicensed Storage Bins for any lawful purpose or to change the permitted use of any unlicensed Storage Bins subject, however, to the provisions of the Declaration. A Storage Bin Licensee shall, at all times, use his or her assigned Storage Bin only in a manner which is in full compliance with all present and future laws, orders, rules and regulations of all state, federal, municipal and local governments, departments, commissions and boards (including the New York Board of Fire Underwriters or any similar body) asserting jurisdiction therefor, or any direction of any public KL

3 officer pursuant to law, including, without limitation, the police and fire departments of the City of New York, which may require the removal or destruction of items stored in a Storage Bin. To protect the security of the Building, any Licensee must also at all times be the owner of a Residential Unit of the Building or the 90 Lexington Property, provided, however, that the foregoing restriction shall not apply: (i) to Sponsor or its designee; or (ii) to the Board or its designees. Holders of Storage Bin Licenses will be required to pay an initial monthly license fee to the Condominium in an amount equal to $1.055 per month per square foot (as shown on Schedule A-1) of such Storage Bin, which amount shall, following the fifth anniversary of the First Closing, be subject to annual increases based upon the CPI Increase Factor. Sponsor shall not be responsible for paying the aforementioned monthly license fee for unlicensed Storage Bins. The Condominium Board shall have, without limitation, the same rights and remedies with respect to the collection of such license fees as it does with respect to Common Charges. Sponsor makes no representation whatsoever regarding the future license fees to Storage Bin Licensees or to the availability of such Storage Bin Licenses. In addition, even to the extent available, no representation is made with respect to the expected date of completion or availability of such Storage Bins and as a result, Storage Bins may not be available at and for a period of time following the closing of title to any Unit. Further, since some of the Storage Bins are located at the Cellar Floor, a below grade area, neither the Board nor Sponsor can make any representation that the Storage Bins will remain dry or will not experience any water infiltration and neither the Board nor Sponsor will be responsible for any damage to items stored within the Storage Bins. Residential Unit Owners who store items in the Storage Bins do so at their own risk and Unit Owners are advised to consult with their insurance brokers regarding appropriate coverage for such stored items. Residential Unit Owners must comply with applicable Legal Requirements regarding the Storage Bins, which may be subject to periodic inspection by the police and fire departments of the City of New York and other governmental agencies having jurisdiction thereover. If at any time a Licensee sells its Residential Unit and no longer owns any Residential Units in the Building or the 90 Lexington Property, it shall simultaneously assign its Storage Bin License to another owner of a Residential Unit, and if it fails to do so, the Storage Bin License, shall automatically terminate without any action or notice required by the Board at such time as a Licensee no longer owns a Residential Unit. If a Storage Bin License is terminated pursuant to the immediately preceding sentence or otherwise by the Board pursuant to the Storage Bin License Agreement, as the case may be, or if a Residential Unit Owner surrenders its Storage Bin License without assigning such Storage Bin License to another Residential Unit Owner, the Board shall have the right to take possession of the same and/or issue a new Storage Bin License for such Storage Bin upon terms and conditions determined in its sole discretion and without compensation to such Licensee. The form of the Agreement to be used for licensing the use of such Storage Bins to individual Unit Owners is annexed hereto as Exhibit E. Upon the issuance of a Storage Bin License to a Unit Owner, such Unit Owner may assign such Storage Bin License provided (i) the assignee is a Residential Unit Owner of the Building or the 90 Lexington Property and assumes the obligations under the Storage License Agreement pursuant to the assignment and assumption agreement in the form annexed to the KL

4 Storage License Agreement or such other form as reasonably determined by the Condominium Board from time to time; (ii) notification of the assignment is delivered in writing to the Condominium Board in compliance with the requirements of the Storage Bin License Agreement (which assignment shall require and be effective only upon the consent of the Condominium Board, which consent shall be granted provided the terms of the Storage Bin License Agreement regarding such assignment have been otherwise complied with); and (iii) no outstanding monies are owed to the Condominium Board by the holder of such license and/or the assignee. Neither Sponsor nor the Board shall have any liability or obligation with respect to a private assignment of a License. With regard to a Storage Bin held by Sponsor or its designees, the foregoing provisions with regard to assignment thereof do not apply to Sponsor or its designee. Sponsor reserves the right to reconfigure, change, combine, relocate and/or modify the Storage Area or any portion thereof, and the number and size of the Storage Bins by, among other things, reconfiguring the Storage Area and, in connection therewith, re-designating in an amendment to the Declaration a portion of any Limited Common Element space (other than such Limited Common Element spaces which are used for ingress or egress to the Building or otherwise similarly used at the time for Building operations), as part of the Storage Area. Sponsor expressly reserves the right to effect such changes and to amend the Plan so as to reflect the same, provided that no material adverse change will be made to a Storage Bin for which a rider to purchase a Storage Bin License has been countersigned by Sponsor and returned to the Purchaser unless the same is dictated by construction conditions at the Property (such as coordination of Building systems, conflicts with structural members or elements, conforming with Legal Requirements, unforeseen events, etc. and, in all cases, in good faith, reasonably necessary due to factors not within Sponsor s reasonable control, and where no practicable alternative (in the exercise of sound construction management practices) exists), and in such event, Sponsor will, in the amendment disclosing such change and delivered to the Purchasers, offer the materially adversely affected Purchaser(s) the right, for at least 15 days, to rescind their rider to purchase a Storage Bin License (but not their Agreement to purchase the Unit) and receive a refund of their Deposit made in connection with their purchase of such Storage Bin License (but not the Deposit made in connection with their purchase of a Unit), together with all interest earned thereon. Any Purchaser who elects to rescind their rider to purchase a Storage Bin License pursuant to the immediately preceding sentence, shall remain obligated to close title to their Unit pursuant to their Agreement to purchase such Unit. Sponsor will maintain necessary permits and approvals required by DOB in connection with the foregoing work. The purchase prices set forth in Schedule A-1 (annexed hereto as Exhibit C) and other terms of payment (but not other terms of sale) with respect to a particular Storage Bin License are negotiable and may be changed by Sponsor at any time and from time to time, both before and after the recording of the Declaration, without prior notice and without the consent of the Condominium Board, any Unit Owner or mortgagee. If Sponsor changes the purchase price of a Storage Bin, the Purchaser affected thereby may pay more or less than other Purchasers under the Plan for similar Storage Bins, but this will not affect any prior or subsequent sale of any other Storage Bin Licenses. Purchase prices for a Storage Bin shall be changed pursuant to a duly filed amendment with the New York State Department of Law. The deposit for the purchase of a Storage Bin License is twenty percent (20%) of the gross purchase price of such License. At closing, for each issuance of a Storage Bin License, KL

5 the sum of $250 shall be paid by Purchaser to reimburse Sponsor for a portion of its legal fees in connection with processing the issuance of such License. A Purchaser who has executed a rider to his or her Agreement to purchase a Storage Bin License will be required to consummate its purchase of its Unit and the Storage Bin License even though a TCO, as applicable, for the Storage Bin may not have been issued, and/or access to the Storage Bin may not be available on the date set for closing. Notwithstanding the foregoing, applicable license fees for the Storage Bin Licenses will not be collected from holders of Storage Room Licenses until a TCO, as applicable, for the Storage Bin has been issued and use of the Storage Bin is made available to Purchasers. Further, Sponsor reserves the right to amend the Declaration and Condominium By-Laws to reflect the same. 6. Parking Licenses Sponsor hereby offers Purchasers the opportunity to purchase the rights to a parking space (a Parking Space ) pursuant to a license agreement (each such license being a Parking License ) to be issued by Sponsor and/or the Condominium Board. Sponsor will initially offer Parking Licenses for 10 Parking Space hereunder, located on the 1 st Floor as indicated on the Floor Plan annexed hereto as Exhibit G, in the existing parking garage at the Building. The rules and regulations governing the use of the Storage Bins are contained in the By-Laws. Sponsor reserves the right to offer as many Parking Space Licenses, as it determines in its sole discretion and in accordance with applicable Legal Requirements. In addition Sponsor reserves the right to limit the number of Parking Space Licenses sold to any one Purchaser or to make bulk sales, as it determines in its sole discretion. Subject to the certificate of occupancy for the Building, a Parking Space may be used for accessory parking purposes by a Unit Owner or a tenant of a Residential Unit. In no event may any of the Parking Spaces be used as a dwelling space or for storing property which (a) constitutes an inflammable, combustible, explosive or other dangerous item; (b) has an objectionable odor; or (c) is deemed by Sponsor or the Condominium Board, in its sole and absolute discretion, not to be in conformity with the general welfare of the Building. The Rules and Regulations of the Condominium which are applicable to a Unit and/or the Unit Owner shall also be applicable to a Parking License and/or a licensee of a Parking Space (each a Parking Licensee and collectively the Parking Licensees ) thereof. Notwithstanding the foregoing, Sponsor or its designee shall have the right to use any unlicensed Parking Spaces for any lawful purpose, to change the permitted use of any unlicensed Parking Spaces or to license any unlicensed Parking Spaces to any individual or entity subject, however, to the provisions of the Declaration. To protect the security of the Building, any Parking Licensee must also at all times be the owner of a Residential Unit of the Building or the 90 Lexington Property, provided, however, that the foregoing restriction shall not apply: (i) to Sponsor or its designee; or (ii) to the Board or its designees. Holders of Parking Licenses will be required to pay a monthly license fee to the Condominium (as shown on Schedule A-2) of such Parking Space, which amount shall, following the fifth anniversary of the First Closing, be subject to annual increases based upon the KL

6 CPI Increase Factor. Sponsor shall not be responsible for paying the aforementioned monthly license fee for unlicensed Parking Spaces. The Condominium Board shall have, without limitation, the same rights and remedies with respect to the collection of such license fees as it does with respect to Common Charges. Sponsor makes no representation whatsoever regarding the future license fees to Parking Licensees or to the availability of such Parking Licenses. In addition, even to the extent available, no representation is made with respect to the expected date of completion or availability of such Parking Spaces and as a result, Parking Spaces may not be available at and for a period of time following the closing of title to any Unit. However, Sponsor also reserves the right to allow tenants of Unsold Units to use the unlicensed Parking Spaces in accordance with its right(s) under any existing lease for so long as such lease is in effect. Once any such lease expires, Sponsor shall have the right to offer Purchasers licenses for such Parking Space. Unit Owners who store items in the Parking Spaces do so entirely at their own risk and Unit Owners are advised to consult with their insurance brokers regarding appropriate coverage for such stored items. Residential Unit Owners must comply with applicable Legal Requirements regarding the Parking Spaces which may be subject to periodic inspection by the police and fire departments of the City of New York and other governmental agencies having jurisdiction thereover. If at any time a Parking Licensee sells its Residential Unit and no longer owns any Residential Units in the Building or the 90 Lexington Property, it shall simultaneously assign its Parking License to another owner of a Residential Unit, and if it fails to do so, the Parking License, shall automatically terminate without any action or notice required by the Board at such time as a Parking Licensee no longer owns a Residential Unit. If a Parking License is terminated pursuant to the immediately preceding sentence or otherwise by the Board pursuant to the Parking License Agreement, as the case may be, or if a Residential Unit Owner surrenders its Parking License without assigning such Parking License to another Residential Unit Owner, the Board shall have the right to take possession of the same and/or issue a new Parking License for such Parking Space upon terms and conditions determined in its sole discretion and without compensation to such Parking Licensee. The form of the Agreement to be used for licensing the use of such Parking Spaces to individual Unit Owners is annexed hereto as Exhibit H. Upon the issuance of a Parking License to a Unit Owner, such Unit Owner may assign such Parking License provided (i) the assignee is a Residential Unit Owner of the Building or the 90 Lexington Property and assumes the obligations under the Parking License Agreement pursuant to the assignment and assumption agreement in the form annexed to the Parking License Agreement or such other form as reasonably determined by the Condominium Board from time to time; (ii) notification of the assignment is delivered in writing to the Condominium Board in compliance with the requirements of the Parking License Agreement (which assignment shall require and be effective only upon the consent of the Condominium Board, which consent shall be granted provided the terms of the Parking License Agreement regarding such assignment have been otherwise complied with); and (iii) no outstanding monies are owed to the Condominium Board by the holder of such license and/or the assignee. Neither Sponsor nor the Board shall have any liability or obligation with respect to a private assignment of a Parking License. With regard to a Parking Space held by Sponsor or its designees, the foregoing provisions with regard to assignment thereof do not apply to Sponsor or its designee. KL

7 Sponsor reserves the right to reconfigure, change, combine, relocate and/or modify the Existing Parking Garage or any portion thereof, and the number and size of the Parking Spaces by, among other things, reconfiguring the Existing Parking Garage and, in connection therewith, re-designating in an amendment to the Declaration a portion of any Limited Common Element space (other than such Limited Common Element spaces which are used for ingress or egress to the Building or otherwise similarly used at the time for Building operations), as part of the Existing Parking Garage. Sponsor expressly reserves the right to effect such changes and to amend the Plan so as to reflect the same. Sponsor will maintain necessary permits and approvals required by DOB in connection with the foregoing work. The purchase prices set forth in Schedule A-2 (annexed hereto as Exhibit F) and other terms of payment (but not other terms of sale) with respect to a particular Parking License are negotiable and may be changed by Sponsor at any time and from time to time, both before and after the recording of the Declaration, without prior notice and without the consent of the Condominium Board, any Unit Owner or mortgagee. If Sponsor changes the purchase price of a Parking Space, the Purchaser affected thereby may pay more or less than other Purchasers under the Plan for similar Parking Spaces, but this will not affect any prior or subsequent sale of any other Parking Licenses. Purchase prices for a Parking Space shall be changed pursuant to a duly filed amendment with the New York State Department of Law. The deposit for the purchase of a Parking License is twenty percent (20%) of the gross purchase price of such License. At closing, for each issuance of a Parking License, the sum of $250 shall be paid by Purchaser to reimburse Sponsor for a portion of its legal fees in connection with processing the issuance of such Parking License. Further, Sponsor reserves the right to amend the Declaration and Condominium By-Laws to reflect the same. 7. Revised Schedule A Attached hereto as Exhibit I is an updated Schedule A reflecting revisions to the allocation of percentage common interest for certain Units. Additionally, pursuant to a relocation agreement dated as of December 15, 2015 the existing tenant in Unit 12D is now relocated to Unit 602. Attached hereto as Exhibit J is an updated executed Certification of Compliance with Real Property Law Section 339(i) which replaces the Certification of Compliance with Real Law Section 339(i) set forth in the Plan. 8. Title Company Reporting the following: Purchasers are advised that the Special Risks of the Plan are amended to include On January 13, 2016, the U.S. Financial Crimes Enforcement Network ( FinCEN ) issued an order (the Order ) requiring title companies to collect and report certain information about persons involved in residential real estate transactions in Manhattan for closings occurring on or after March 1, 2016 until the expiration of the effective period of such Order, currently anticipated to be August 27, Pursuant to the Order, title companies are required to disclose the identities of the beneficial owner(s) or holder(s) of 25% or more of the direct or indirect equity or beneficial interests in a purchasing entity in residential real estate KL

8 transactions where: (a) Purchaser is a legal entity 1 as defined in the Order; (b) the total Purchase Price is in excess of $3,000,000; (c) Purchaser does not obtain external financing; and (d) the Deposit or Balance is made, at least in part, using currency, a cashier s check, a certified check, a traveler s check, or a money order in any form. Purchasers should confer with their attorneys and with their title company for further information. 9. New Escrow Bank Escrow Agent has established an escrow account at JP Morgan Private Bank, 270 Park Avenue, 18 th Floor, New York, New York (the "Bank"), a bank authorized to do business in the State of New York. In connection with the filing of this Amendment, except as set forth below, all Deposits previously received by Escrow Agent shall be transferred to, and all present and future Deposits shall be deposited into, an escrow account at the aforementioned Bank. Each escrow account is entitled Kramer Levin Naftalis & Frankel LLP Attorney Trust Account 88 Lexington Avenue Condominium or similar name (each the "Escrow Account"). The Escrow Account is federally insured by the FDIC to the maximum amount of $250,000 per deposit (the FDIC limit in effect as of the filing date hereof). Any deposit in excess of $250,000 (or the FDIC limit in effect from time to time) will not be insured. Purchasers are also advised that if a Purchaser has any additional accounts at the Bank, the funds in said accounts will be added together with the deposit held in escrow and the aggregate of all the funds held by the Bank will only be insured up to the $250,000 FDIC maximum coverage. Any deposits or payments made for upgrades, extras, or custom work shall be initially deposited into the Escrow Account, and released in accordance to the terms of a written agreement between Purchaser and Sponsor. The interest rate for all Deposits transferred or made into the Escrow Account shall be the prevailing rate for such accounts, which is fixed by the Bank (as defined above) and which will vary from time to time. As of February 22, 2016, such rate was 0.03%. The actual initial interest rate for the Escrow Account with respect to any particular new Purchaser s Deposit shall be set forth in the notice to be sent to such Purchaser. As noted, the interest rate on such accounts will fluctuate and neither Sponsor nor Escrow Agent makes any representation regarding the rates that will be in effect from time to time or the actual rate of interest on, or the interest that may accrue for any particular account or for any particular Purchaser, from time to time. Interest, if any, shall begin to accrue upon placing the Deposit into the Escrow Account, however, no interest will be earned until the Deposit check is deposited with and collected by the Bank and provided that the Purchaser has delivered the required number of completed and signed Form W-9 (Request for Taxpayer Identification Number) in the form reproduced as Exhibit 1A in Part II of the Plan or Form W-8BEN (Certificate of Foreign Status of Beneficial Owner for United States Tax Withholding) in the form reproduced as Exhibit 1B in Part II of the Plan, as applicable, to Sponsor or Selling Agent at the time Purchaser tenders the Deposit and the Purchase Agreement. If a Purchaser does not deliver the Form W-9 or Form W-8BEN, as applicable, the Deposit will be deposited in a non-interest-bearing escrow account at the aforesaid bank until the Form W-9 or Form W-8BEN has been delivered, and neither Sponsor, 1 As of the date of filing of this Amendment, legal entity is defined in the Order as including U.S. or foreign corporations, limited liability companies, partnerships or other similar business entities. KL

9 Selling Agent, the Escrow Agent nor the Bank shall be liable for interest for the period prior to the delivery of such form. Interest will not be earned after a withdrawal is made from the Escrow Account in anticipation of the closing. All interest earned on a Purchaser s Deposit shall be paid to or credited to the Purchaser at closing unless Purchaser has defaulted and Sponsor is entitled to retain the Deposit. No fees of any kind may be deducted from the Escrow Account, and Sponsor shall bear all costs associated with the maintenance of the Escrow Account. All references in the Plan as to the identity of the Bank and the Escrow Account, including with respect to the Escrow Rider to the Purchase Agreement included in Part II of the Plan, are hereby amended in accordance with the above. 10. Plan Declared Effective The Plan is hereby declared effective. As of March 2, 2016 Agreements have been executed by fourteen (14) bona fide purchasers, all of which are being counted toward effectiveness of the Plan (representing approximately fifteen percent (15%) of the 90 Residential Units offered under the Plan) who represented that they or one or more members of their immediate family intend to occupy the Residential Unit when it becomes vacant. As of March 2, 2016, no bona fide tenants in occupancy have executed Agreements. Exhibit A. Sponsor s affidavit in support of declaring the Plan effective is annexed hereto as 11. Additional Deposit If this amendment declaring the Plan to be effective has been accepted by the Department of Law as of the date on which any Initial Deposit is due, then any Additional Deposit shall be due and payable at the same time as the Initial Deposit. All references in the Plan are amended accordingly. Section 3.1 in the form of Purchase Agreement in Part II of the Plan is, accordingly, amended and restated as follows: 3. Purchase Price. a. The purchase price of the Unit (the Purchase Price ) is $ payable as follows: (1) $ (the Deposit ) (twenty percent (20%) of the Purchase Price), due upon the signing and submitting of this Agreement, receipt of which (subject to collection) is hereby acknowledged; and (2) $ (the Balance ), constituting the balance of the Purchase Price, at the closing as hereinafter provided. For the avoidance of doubt, the only change to the form of Purchase Agreement is to reflect that hereafter there will be a single deposit. KL

10 12. Exclusive Purchase Period All Eligible Tenants who had the right to purchase during the initial 90-day Exclusive Purchase Period, shall hereby be granted a new Exclusive Purchase Period for a period of 30 days from the Presentation Date of this Amendment. 13. Definitions Except as herein defined, all capitalized terms used in this Amendment which are defined in the Plan shall have the respective meanings ascribed to such terms in the Plan. 14. Incorporation of the Plan The Plan, as modified and supplemented by this Amendment, is incorporated herein by reference with the same force and effect as if set forth at length. 15. No Material Changes in the Plan There have been no material changes in the Plan except as set forth in this Amendment. The Plan, as hereby amended, does not knowingly omit any material fact. 16. Extension of Plan The term of the Plan shall expire six months from the filing of this Amendment. Dated: [, 2016] SPONSOR: HFZ 88 LEXINGTON AVENUE OWNER LLC KL

11 EXHIBIT A [Affidavit in Support of Declaring the Plan Effective on next page] KL

12 AFFIDAVIT IN SUPPORT OF DECLARING THE PLAN EFFECTIVE STATE OF NEW YORK ) ) ss.: COUNTY OF NEW YORK ) ZIEL FELDMAN, being duly sworn, deposes and says: 1. I am an Authorized Signatory of HFZ 88 Lexington Avenue Owner LLC, the Sponsor of the Plan to convert to condominium ownership the premises located at 88 Lexington Avenue, New York, New York and known as 88 Lexington Avenue Condominium as a non-eviction plan pursuant to General Business Law Section 352-eeee. 2. The Plan was accepted for filing by the New York State Department of Law on May 18, 2015 and was presented to the tenants on June 1, All posting statements required pursuant to General Business Law Section 352-eeee have been posted. 4. The Plan provides that it may not be declared effective unless Agreements are executed and accepted for not less than 14 Residential Units, representing fifteen percent (15%) of the total number of Residential Units. As of March 2, 2016, Agreements have been executed and accepted for fourteen (14) Residential Units, all of which are being counted toward effectiveness of the Plan. 5. Annexed hereto as Schedule I is a list of the Residential Units which are being counted to meet the minimum percentage that is needed under the terms of the Plan to declare the Plan effective and which also states the date of the Agreement for such Residential Unit. 6. All purchasers who are counted for purposes of declaring the Plan effective: (a) are bona fide purchasers; (b) are not purchasing as an accommodation to, or for the account or benefit of, Sponsor or principals of Sponsor; and (c) have duly executed Purchase Agreements and have paid the full Initial Deposit as required in the Procedure to Purchase Section of the Plan, or an amendment thereto. 7. Only Purchase Agreements assigned or transferred in compliance with Section 23.3(r) of the regulations have been counted for purposes of declaring the Plan effective, to the extent applicable. 8. There are no material changes to the projected budget for the First Year of Condominium Operation which have not been disclosed in a duly filed amendment to the Plan. 9. No purchaser counted for purposes of declaring the Plan effective is: (a) Sponsor, Selling Agent, Managing Agent; (b) a principal of Sponsor, Selling Agent or Managing Agent; or (c) related to Sponsor, Selling Agent or Managing Agent or any principal of Sponsor, Selling Agent or Managing Agent by blood, marriage or adoption or as a business associate, an employee, a shareholder, or a limited partner. KL

13

14 Schedule I AFFIDAVIT IN SUPPORT Unit Date of Agreement /30/ /24/ /02/ /11/ /20/ /23/ /18/ /16/ /12/ /02/ /30/ /06/ /02/ /14/15 KL

15 EXHIBIT B [Total Offering Price for Tenants in Occupancy on next page] KL

16 88 LEXINGTON AVENUE PROJECTED COMMON CHARGES AND REAL ESTATE TAXES ARE FOR THE FIRST YEAR OF CONDOMINIUM OPERATION OCTOBER 1, 2015-SEPTEMBER 30, 2016 Old Unit Unit Square Footage Designation Bedrooms Bathrooms Current Rental Status Unit Square Footage Exterior Offering Price to Tenant Purchaser Unit Designation 204 * 2J 1 1 Rent Stabilized 1, $1,060, * 3D 0 1 Rent Stabilized $508, * 4L 0 1 Rent Stabilized $560, * 5L 0 1 Rent Stabilized $576, L 0 1 Rent Stabilized $440, * 6K 1 1 Rent Stabilized 1,076 0 $840, * 8K 1 1 Rent Stabilized 1,076 0 $860, * 10K 1 1 Rent Stabilized 1,076 0 $882, * 10E 2 2 Rent Stabilized 1,257 0 $1,206, * 10H 0 1 Rent Stabilized $526, * 11E 2 2 Rent Stabilized 1,259 0 $1,058, * 11J 1 1 Rent Stabilized $750, * 12D 0 1 Rent Stabilized $560, * 14B 0 1 Rent Stabilized $520, * 14D 0 1 Rent Stabilized $614, * 15E 1 1 Rent Stabilized $796, * 17C 0 1 Rent Stabilized $956, * 17H 0 1 Rent Stabilized $944, * 18B 0 1 Rent Stabilized $620, * 18C 1 1 Rent Stabilized $1,056,000 Insider Residential Unit Total 17, $15,332,000 Total Units Pricing at Insider Pricing $115,715,200 * Purchase price reflects "As Is" Conditions

17 EXHIBIT C [Schedule A-1 for Offering of Storage Bin Licenses on next page] KL

18 88 Lexington Avenue Condominium Schedule A-1: Purchase Prices and Related Information for the Projected First Year of Condominium Operation (10/31/15-9/30/16) Storage Unit Storage Square Unit Cubic Footage Footage Projected Monthly License Fee Floor Unit # Storage Room Size Width Depth Purchase Price 1 A 5'8" x 4'4" x 4'0" 5'-8" 4'-4" $ 37,000 $ A 5'8" x 4'4" x 4'0" 5'-8" 4'-4" $ 37,000 $ A 5'8" x 4'4" x 4'0" 5'-8" 4'-4" $ 37,000 $ A 5'8" x 4'4" x 4'0" 5'-8" 4'-4" $ 37,000 $ A 5'8" x 4'4" x 4'0" 5'-8" 4'-4" $ 37,000 $ A 5'8" x 4'4" x 4'0" 5'-8" 4'-4" $ 37,000 $ A 5'8" x 4'4" x 4'0" 5'-8" 4'-4" $ 37,000 $ A 5'0" x 8'4" x 4'0" 5'-0" 8'-4" $ 62,500 $ A 4'2" x 8'4" x 4'0" 4'-2" 8'-4" $ 52,000 $ A 4'2" x 8'4" x 4'0" 4'-2" 8'-4" $ 52,000 $ A 5'0" x 8'4" x 3'8" 5'-0" 8'-4" $ 62,500 $ A 5'0" x 8'4" x 3'8" 5'-0" 8'-4" $ 62,500 $ A 4'4" x 4'8" x 4'0" 4'-4" 4'-8" $ 30,500 $ A 4'4" x 4'8" x 4'0" 4'-4" 4'-8" $ 30,500 $ A 5'6" x 4'4" x 4'0" 5'-6" 4'-4" $ 36,000 $ A 5'6" x 4'4" x 4'0" 5'-6" 4'-4" $ 36,000 $ A 5'6" x 4'4" x 4'0" 5'-6" 4'-4" $ 36,000 $ A 5'6" x 4'4" x 4'0" 5'-6" 4'-4" $ 36,000 $ A 8'8" x 4'8" x 4'0" 8'-8" 4'-8" $ 60,500 $ A 4'4" x 4'8" x 4'0" 4'-4" 4'-8" $ 30,500 $ A 4'4" x 4'8" x 4'0" 4'-4" 4'-8" $ 30,500 $ A 4'4" x 4'8" x 4'0" 4'-4" 4'-8" $ 30,500 $ A 4'4" x 4'8" x 4'0" 4'-4" 4'-8" $ 30,500 $ Cellar 24 A 4'4" x 4'8" x 4'0" 4'-4" 4'-8" $ 30,500 $ A 4'4" x 4'8" x 4'0" 4'-4" 4'-8" $ 30,500 $ A 4'4" x 4'8" x 4'0" 4'-4" 4'-8" $ 30,500 $ A 4'4" x 4'8" x 4'0" 4'-4" 4'-8" $ 30,500 $ B 5'8" x 4'4" x 4'0" 5'-8" 4'-4" $ 37,000 $ B 5'8" x 4'4" x 4'0" 5'-8" 4'-4" $ 37,000 $ B 4'4" x 6'8" x 4'0" 4'-4" 6'-8" $ 43,500 $ B 4'4" x 6'8" x 4'0" 4'-4" 6'-8" $ 43,500 $ B 4'4" x 6'8" x 4'0" 4'-4" 6'-8" $ 43,500 $ B 4'4" x 6'8" x 4'0" 4'-4" 6'-8" $ 43,500 $ B 4'4" x 6'8" x 4'0" 4'-4" 6'-8" $ 43,500 $ B 4'4" x 6'8" x 4'0" 4'-4" 6'-8" $ 43,500 $ B 5'8" x 4'4" x 4'0" 5'-8" 4'-4" $ 37,000 $ B 5'8" x 4'4" x 4'0" 5'-8" 4'-4" $ 37,000 $ B 5'8" x 4'4" x 4'0" 5'-8" 4'-4" $ 37,000 $ B 4'4" x 6'8" x 4'0" 4'-4" 6'-8" $ 43,500 $ B 4'4" x 6'8" x 4'0" 4'-4" 6'-8" $ 43,500 $ B 4'4" x 6'8" x 4'0" 4'-4" 6'-8" $ 43,500 $ B 4'4" x 6'8" x 4'0" 4'-4" 6'-8" $ 43,500 $ B 4'4" x 6'8" x 4'0" 4'-4" 6'-8" $ 43,500 $ B 4'4" x 6'8" x 4'0" 4'-4" 6'-8" $ 43,500 $ B 4'4" x 6'8" x 4'0" 4'-4" 6'-8" $ 43,500 $ B 4'4" x 6'8" x 4'0" 4'-4" 6'-8" $ 43,500 $ B 4'4" x 6'8" x 4'0" 4'-4" 6'-8" $ 43,500 $ TOTAL 1,260 5,014 $ 1,897,500 $ 1,329.77

19 EXHIBIT D [Floor Plans indicating Storage Bins on next page] KL

20

21 EXHIBIT E [Form of Storage Bin License Agreement on next page] KL

22 STORAGE BIN LICENSE AGREEMENT STORAGE BIN LICENSE AGREEMENT made this day of, 20 ( Agreement ) by and between HFZ 88 LEXINGTON OWNER LLC, having an office c/o HFZ Capital Group, LLC, 600 Madison Avenue, 15 th Floor, New York, New York ( Sponsor ), the Board of 88 LEXINGTON AVENUE CONDOMINIUM, on behalf of all Unit Owners, having an address at 88 Lexington Avenue, New York, New York (the Board ) (together, Sponsor and the Board are sometimes referred to as Licensor ), and having an address at 88 Lexington Avenue, Unit, New York, New York ( Licensee ); WHEREAS, 88 LEXINGTON AVENUE CONDOMINIUM ( Condominium ) is governed by a certain Declaration of Condominium dated as of [, 2016] recorded in the New York County Office of the Register of the City of New York on [, 2016] as CRFN [ ], as the same has been or may be amended from time to time (the Declaration ), the by-laws of the Condominium, as the same has been or may be amended from time to time (the By-Laws ) and the Rules and Regulations of the Condominium, as the same has been or may be amended from time to time (the Rules and Regulations ) (the Declaration, the By-Laws and the Rules and Regulations are collectively referred to as the Condominium Documents ); and WHEREAS, there are Storage Bins ( Storage Bins ) that have been installed for use by permitted Residential Unit Owners of the Building and the 90 Lexington Property, located on the Cellar Floor of the Building, which is a Limited Common Element; and WHEREAS, Licensee, owns or simultaneously herewith is acquiring Unit in the Condominium; and WHEREAS, Licensee desires the right to the exclusive use (subject to the Condominium Documents) of Storage Bin # for so long as Licensee owns a Residential Unit in the Condominium (the License ); NOW THEREFORE, in consideration of the sum of $10.00 and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto agree as follows: 1. Licensor hereby grants to Licensee, its successors and assigns, a License for the exclusive use of Storage Bin # (the Licensed Area ) and Licensee hereby accepts such License from Licensor for a term commencing on the date hereof, subject to the terms and conditions hereof and of the Condominium Documents. 2. Licensee shall pay a monthly license fee to the Condominium in accordance with the Condominium Documents, which fee may be increased by the Condominium Board from time to time. The Condominium Board shall have, without limitation, the same rights and remedies with respect to the collection of such license fees as it does with respect to the Common Charges.

23 3. The Licensed Area may only be used for resident storage. Licensee shall not store in the Licensed Area any (i) inflammable, combustible, explosive or other dangerous items; (ii) items which have an objectionable odor; and/or (iii) items which are deemed by the Licensor, in its sole and absolute discretion, not to be in conformity with the general welfare of the Building. Licensee shall not (a) interfere with another licensee of Licensor in connection with the access to or use of its Storage Bin; (b) allow any other person to use the Licensed Area except in accordance with the terms hereof; or (c) deface, damage or alter the Building or the Common Elements. Licensee shall, at all times, use the Licensed Space only in a manner which is in full compliance with all present and future laws, orders, rules and regulations of all state, federal, municipal and local governments, departments, commissions and boards (including the New York Board of Fire Underwriters or any similar body) asserting jurisdiction therefor, or any direction of any public officer pursuant to law, including without limitation, the police and fire departments of the City of New York, which may require the removal or destruction of items stored in the Licensed Area. Since some of the Storage Bins are located at the Cellar Floor, a below grade area, neither the Board nor Sponsor can make any representation that the Storage Bins will remain dry or will not experience any water infiltration and neither the Board nor Sponsor will be responsible for any damage to items stored within the Storage Bins. Residential Unit Owners who store items in the Storage Bins do so at their own risk and Unit Owners are advised to consult with their insurance brokers regarding appropriate coverage for such stored items. 4. This License may be assigned by Licensee at any time provided: (i) the assignee is a Residential Unit Owner or occupant of a Residential Unit at the Condominium or the 90 Lexington Property and assumes the obligations hereunder pursuant to an assignment and assumption agreement in the form annexed hereto, (ii) notification of the assignment is delivered in writing to the Condominium Board in compliance with its requirements as the same may be modified from time to time (which assignment shall require and be effective only upon the consent of the Condominium Board, which consent shall be granted provided the terms of this paragraph 4 have otherwise been complied with), and (iii) no outstanding monies are owed to Sponsor and/or the Condominium by the Licensee and/or the assignee. If at any time Licensee sells or leases his or her Residential Unit and no longer owns any Residential Unit in the Building, he or she shall simultaneously assign this License to another owner or occupant of a Residential Unit, and he or she fails to do so, this License shall automatically terminate without any action or notice required by the Board at such time as the Licensee no longer owns a Residential Unit. If this License is terminated pursuant to the immediately preceding sentence or otherwise by the Board pursuant to this Agreement, or if Licensee surrenders this License without assigning it to another Residential Unit Owner, the Board shall have the right to take possession of the same and/or issue a new Storage Bin License for the Licensed Area upon terms and conditions determined in its sole discretion and without compensation to Licensee. 5. Licensee represents that it has made a thorough inspection of the Licensed Area and agrees to take same in its as is condition as of the date of this Agreement. Licensee shall throughout the term of this Agreement take good care of and maintain the Licensed Area. All repairs and replacements to the Storage Bins, as well as any rooms or spaces in which such Storage Bins are located, shall be performed by the Board and the cost thereof shall be a Common Expense (as defined in the By-Laws), unless such repair or replacement is necessitated

24 by the negligence, misuse, or abuse of Licensee, then the entire cost and expense of such repair or replacement shall be borne by Licensee. 6. Neither Licensor nor the respective agents or employees of such Licensor shall be liable for any theft or damage to any property stored in the Licensed Area. 7. The terms of this Agreement are subject to the terms of the Condominium Documents. Nothing contained herein shall be construed as limiting the rights and obligations of the parties under the Condominium Documents. Any conflict between the provisions of this Agreement and the Condominium Documents shall be resolved in favor of the Condominium Documents. 8. If Licensee defaults in its obligations hereunder or under the Condominium Documents, the Condominium Board may, in addition to the rights and remedies set forth in the Condominium Documents: (i) deny access to and use of the Licensed Area until Licensee cures such default, or (ii) terminate this Agreement upon thirty (30) days written notice to Licensee. 9. Licensor or its agents shall have the right, but not the obligation, to open the Licensed Area or to demand prompt removal of Licensee s items from the Licensed Area for a temporary period of time without compensation to Licensee in order to access all portions of the Storage Area in an emergency at any time, and, at other reasonable times upon prior notice to Licensee (to the extent the same affected the Licensed Area), to inspect and examine the Storage Area which may be occupied by the Licensed Area and to make such repairs, replacements and improvements in portions of the Storage Area which may be occupied by the Licensed Area, as Licensor shall deem necessary. 10. This Agreement shall constitute a license only and shall not be construed under any circumstances to be a sale of the Licensed Area or conveyance of title thereto. In no event shall a landlord/tenant relationship exist between the Licensor and the Licensee with respect to this Agreement or otherwise. 11. Licensee shall indemnify and hold Sponsor and the Condominium Board, as Licensor, and the Condominium s managing agent and their respective directors, officers, partners, parent and subsidiary and affiliated companies, agents and employees, harmless from and against any and all liabilities, claims, causes of action, damages, lawsuits, penalties, judgments, and liens, together with any related costs and expenses, including, but not limited to, reasonable legal fees, asserted against or sustained by any of them in connection with any act, omission, or negligence of Licensee or Licensee s family, servants, employees, agents, guests and invitees in connection with this License. 12. Licensee shall be obligated to reimburse Licensor for any legal fees and disbursements incurred by Licensor in defending or enforcing the rights of Licensor under this Agreement or, in the event Licensee defaults under this Agreement, enforcing Licensee s obligations hereunder. 13. This Agreement and the License, and use and ownership of Licensed Areas, are also subject to pertinent provisions of all Condominium governing documents, including, but not limited to the Condominium Declaration, the Condominium By-Laws, and to such Rules and

25 Regulations as may be adopted by the Condominium Board with regard to Storage Bins and Storage Bin Licenses. 14. In the event this Agreement is terminated hereunder, Licensee shall remove its belongings from the Licensed Area and surrender possession of the Licensed Area. Any property not removed from the Licensed Area at the expiration or other termination of this Agreement shall be considered abandoned and may, at Licensor s option, be retained as Licensor s property or disposed of at Licensee s cost and without any liability to Licensor. Licensee s obligation to observe or perform this covenant shall survive the expiration or other termination of this Agreement. 15. Licensee shall at all times maintain, in full force and effect, insurance covering both the property stored in the Licensed Area, as may be determined by the Condominium Board from time to time. Licensee further agrees to a waiver of its insurer s right of subrogation against Licensor. 16. Neither this Agreement nor any provision hereof may be waived, amended, discharged or terminated except by an instrument in writing signed by the party against which the enforcement of such waiver, amendment, discharge or termination is sought and then only to the extent set forth in such instrument. 17. It is understood and agreed that all understandings and agreements heretofore had between the parties hereto are merged in this Agreement, which alone fully and completely express their agreement and that this Agreement supersedes any and all such understandings and agreements with respect to the subject matter hereof. 18. If any provision of this Agreement is invalid or unenforceable as against any party or under certain circumstances, the remainder of this Agreement and the applicability of such provision to other parties or circumstances shall not be affected thereby. Each provision of this Agreement, except as otherwise herein or therein provided, shall be valid and enforced to the fullest extent permitted by law. 19. Either party shall execute, acknowledge and deliver to the other party such instruments and take such other actions, in addition to the instruments and actions specifically provided for herein, as such other party may reasonably request in order to effectuate the provisions of this Agreement or of any transaction contemplated herein or to confirm or perfect any right to be created or transferred hereunder or pursuant to any such transaction. 20. Any failure by the Licensor to insist upon strict performance by Licensee of any of the provisions of this Agreement shall not be deemed a waiver of any of the provisions hereof, irrespective of the number of violations or breaches which may occur, and Licensor, notwithstanding any such failure, shall have the right thereafter to insist upon strict performance by Licensee of any and all of the provisions of this Agreement to be performed by Licensee. 21. From and after the initial issuance of this License, with respect to all liabilities and obligations of Licensor, Licensee shall look only to the Condominium Board and not to Sponsor with regard to fulfillment of such obligations. After issuance of this License to Licensee, neither the Condominium Board nor Licensee shall have any rights or recourse against

26 Sponsor whatsoever in connection with the obligations of Licensor hereunder or any other matter in connection with the Storage Area or the Licensed Area. 22. Capitalized terms utilized and not otherwise defined herein shall have the meanings ascribed to them in the Condominium Documents.

27 IN WITNESS WHEREOF, the undersigned have executed this Agreement as of the day and year first above written. Agreed to and Acknowledged by LICENSOR: CONDOMINIUM BOARD OF 88 LEXINGTON AVENUE CONDOMINIUM LICENSEE: By: By: Name: Title: By: HFZ 88 LEXINGTON AVENUE OWNER LLC By: Name: Title:

28 ASSIGNMENT AND ASSUMPTION OF STORAGE BIN LICENSE AGREEEMENT THIS ASSIGNMENT AND ASSUMPTION OF STORAGE BIN LICENSE AGREEEMENT made as of the day of, 20 by and between (hereinafter referred to as the Assignor ), having an address at, New York, New York, and (hereinafter referred to as the Assignee ), having an address at, New York, New York. W I T N E S S E T H: WHEREAS, Assignor executed a certain Storage Bin License Agreement dated, 201 (the Agreement ) to have the exclusive right (the License ) to use Storage Bin # located at 88 LEXINGTON AVENUE CONDOMINIUM located at 88 Lexington Avenue, New York, New York 10016, in accordance with the terms of the Condominium Documents, as described in said Agreement; and WHEREAS, Assignor desires to assign to Assignee all of Assignor s right, title and interest in and to the Agreement and the License granted therein; and WHEREAS, Assignee desires to assume all of the obligations and responsibilities of Assignor in and to the Agreement; and WHEREAS, the parties hereto wish to set forth their agreements with respect to this Assignment; NOW, THEREFORE, in consideration of the mutual promises herein contained, and other good and valuable consideration, the parties hereto agree as follows: 1. ASSIGNMENT: Assignor hereby assigns the Assignee, from and after the date hereof, all of Assignor s right, title and interest in and to the Agreement and the License, a copy of which is attached hereto and made a part hereof, for a purchase price of $. 2. ASSUMPTION: Assignee hereby assumes all of the obligations, promises, covenants and responsibilities of Assignor in and to the Agreement as if Assignee had signed the Agreement originally as Licensee. 3. AUTHORIZATION AND DIRECTION: Assignor and Assignee hereby authorize and direct the Condominium to have the books and records of the Condominium reflect that Assignee has the exclusive right to use Storage Bin # (the Licensed Area ). 4. EFFECTIVE DATE: This Assignment shall not be deemed effective unless and until signed by each of the parties hereto and approved by the Condominium Board, in accordance with the terms of the Condominium Documents and the Agreement.

29 5. DEFINED TERMS: All terms not defined herein shall have the meanings ascribed to them in the Plan. IN WITNESS WHEREOF, Assignor and Assignee have duly executed this Assignment and Assumption of Storage Bin License Agreement on the day and year first above written. ASSIGNOR: ASSIGNEE: APPROVED BY CONDOMINIUM BOARD OF 88 LEXINGTON AVENUE CONDOMINIUM By: Name: Title: KL

30 EXHIBIT F [Schedule A-2 for Offering of Parking Licenses on next page] KL

31 88 Lexington Avenue Condominium Schedule A-2: Purchase Prices and Related Information for the Projected First Year of Condominium Operation (10/31/15-9/30/16) Projected Floor Space # Purchase Price Monthly License Fee 1 $ 350,000 $ $ 350,000 $ $ 350,000 $ $ 350,000 $ Ground 5 $ 350,000 $ Level 6 $ 350,000 $ $ 350,000 $ $ 350,000 $ $ 350,000 $ $ 350,000 $ TOTAL $ 3,500,000 $ 1,434.80

32 EXHIBIT G [Floor Plan indicated Parking Spaces on next page] KL

33