Document:

ATLC-EX10.2_2013.6.30-Q2

Exhibit 10.2

SECOND AMENDMENT AND JOINDER TO 
LOAN AND SECURITY AGREEMENT

This Second Amendment and Joinder to Loan and Security Agreement (“Amendment”) is dated as of May 17, 2013 by and among CARS ACQUISITION LLC, a Georgia limited liability company, CAR FINANCIAL SERVICES, INC., a Georgia corporation, CAR FUNDING II, INC., a Nevada corporation, and CONSUMER AUTO RECEIVABLES SERVICING, LLC, a Georgia limited liability company (collectively, the “Existing Borrowers” and each individually is referred to as an “Existing Borrower”), FORTIVA HOLDINGS, LLC, a Georgia limited liability company, FORTIVA FUNDING, LLC, a Georgia limited liability company, and FORTIVA CAPITAL, LLC, a Georgia limited liability company (collectively, the “Joining  Borrowers” and each individually is referred to as a “Joining Borrower” and collectively with Existing Borrowers, the “Borrowers” and each individually is referred to as a “Borrower”), WELLS FARGO BANK, N.A., successor by merger to Wells Fargo Preferred Capital, Inc., as agent for Lenders (“Agent”), and the financial institutions a party hereto as lenders (collectively, the “Lenders” and each is a “Lender”).

BACKGROUND

A.Existing Borrowers, Lenders, and Agent are parties to a certain Loan and Security Agreement dated as of October 4, 2011 (as amended or modified from time to time, the “Loan Agreement”).  Capitalized terms used but not otherwise defined in this Amendment shall have the meanings respectively ascribed to them in the Loan Agreement.
B.Existing Borrowers and Atlanticus have requested and Agent and Lenders have agreed to (i) permit Joining Borrowers to join the Loan Agreement and the Credit Documents as joint and several co-Borrowers and (ii) amend the Loan Agreement in certain respects, all on the terms and conditions set forth herein.
    
NOW, THEREFORE, the parties hereto, intending to be legally bound, hereby promise and agree as follows:

1.Joinder.  Upon the effectiveness of this Amendment, each Joining Borrower joins in as, assumes the obligations and liabilities of, adopts the obligations, liabilities and role of, and becomes a Borrower under the Loan Agreement and Credit Documents.  All references to Borrower or Borrowers contained in the Loan Agreement and Credit Documents are hereby deemed for all purposes to also refer to and include each Joining Borrower as a Borrower and each Joining Borrower hereby agrees to comply with all of the terms and conditions of the Loan Agreement and Credit Documents, as if such Joining Borrower was an original signatory thereto.  Without limiting the generality of the foregoing, each Joining Borrower is hereby liable, on a joint and several basis, along with all other Borrowers, for all Obligations, including, without limitation, all existing and future Advances and all other debts, liabilities and obligations incurred at any time by any one or more Borrowers under the Loan Agreement and Credit Documents.
2.Amendments.
(a)Definitions.  The following definitions contained in Section 1.1 of the Loan Agreement are amended and restated as follows:
“Adjusted Tangible Net Worth” means, as of any date of determination, CAR Borrowers' Tangible Net Worth, minus (a) the aggregate amount of CAR Borrowers' Receivables that are 180 days or more delinquent on a 

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contractual aging basis, and (b) the amount by which the then Minimum Loss Reserve Requirements exceeds CAR Borrowers' Loan Reserves. 
“Borrower Agent” means (a) with respect to CAR Borrowers, CAR Financial Services, Inc. and (b) with respect to Fortiva Borrowers, Fortiva Holdings LLC.
“Borrowing Base” means, as of the date of determination, an amount equal to: 
(a)     the lesser of (i) the Principal Advance Rate multiplied by the aggregate balance of Eligible Principal Receivables of CAR Borrowers and (ii) the Net Advance Rate multiplied by the aggregate balance of Eligible Net Receivables of CAR Borrowers, plus
(b)    the lesser of (i) Sixty Percent (60%) multiplied by the aggregate balance of Eligible Net Fortiva Receivables of Fortiva Borrowers, and (ii) the Fortiva Sublimit, minus 
(c)     reserves established by Agent pursuant to Section 2.1(e).  
“Capital Base” means the sum of CAR Borrowers' Adjusted Tangible Net Worth plus CAR Borrowers' Subordinated Debt.
“Collateral Performance Indicator” means as of the end of each calendar month with respect to CAR Borrowers, the sum of:
(a)        the rolling three month average 61+ day delinquency percentage (the percentage defined as (x) Receivables for which payment is more than 61 or more days contractually past due, divided by (y) total Receivables at such date), plus
(b)        (i) net charge-offs, net of dealer reserves for the 12 month period ending on such date divided by (ii) average Principal Receivables during the 12 month period ending on such date, plus
(c)        (i) the rolling three month average Insufficient Dealer Reserve Receivables (the percentage defined as (x) Insufficient Dealer Reserve Receivables, divided by (y) total Receivables at such date).
“Custodian” means (a) Richard C. Potter with respect to CAR Borrowers, (b) Brian Stone with respect to Fortiva Borrowers and (c) such other Person reasonably acceptable to Agent.
“EBITDA Ratio” means for CAR Borrowers, on a consolidated basis the ratio of (a) earnings before payments of interest, taxes, depreciation and amortization expenses, minus (i) any increase during such twelve (12) month period in the amount by which the then Minimum Loss Reserve Requirement exceeds CAR Borrowers' Loan Reserves and (ii) any increase over the past twelve (12) months in Receivables one hundred eighty (180) days or more contractually past due (to the extent deemed necessary by Agent in its sole discretion) to (b) the interest expense, as calculated on a rolling twelve (12) month basis and in accordance with GAAP.

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“Senior Debt to Capital Base Ratio” means the ratio of Senior Debt of CAR Borrowers to Capital Base.
“Senior Management” means (a) with respect to CAR Borrowers, at least four (4) of the following persons: Richard Potter, Robert Chappell, Chris Tiller, Kas Naderi, Marguerite Blatz, Jay Putnam and Rick Loftsgard and (b) with respect to Fortiva Borrowers, at least four (4) of the following persons: Brian Stone, John DeMonica, Alan Reeves, Betty Lass, Rosalind Drakeford, William McCamey and Jeff Howard.
“Tangible Net Worth” means, at any date, the amount of the equity interest liability of CAR Borrowers on a consolidated basis (but excluding the effect of intercompany transactions subsequent to the date of this Agreement) plus (or minus in the case of a deficit) its capital surplus and earned surplus minus, to the extent not otherwise excluded (a) the cost of treasury shares, (b) the aggregate amount of Intangible Assets including the excess for assets acquired over their respective book values on the books of the corporation from which acquired, and (c) investments in and loans to any Subsidiary or Affiliate or to any equity holder, director or employee of a CAR Borrower or an Affiliate of any CAR Borrower.
(b)New Definitions.  The following new definitions are added to Section 1.1 of the Loan Agreement:
“CAR Borrowers” means, collectively, CARS Acquisition LLC, CAR Financial Services, Inc., CAR Funding II, Inc. and Consumer Auto Receivables Servicing, LLC.
“Eligible Net Fortiva Receivables” means Eligible Fortiva Receivables net of unearned interest, fees, insurance commissions, discounts, dealer reserves and holdbacks.
“Eligible Fortiva Receivables” means, as of the date of determination, Receivables which are Chattel Paper, which conform to the warranties set forth in Section 4.1 hereof, in which Agent has a validly perfected first priority Lien, and which are not any of the following: (i) Receivables for which a payment is more than sixty (60) days past due on a contractual basis; (ii) Receivables subject to litigation or legal proceedings or Receivables which are subject to bankruptcy proceedings or the account debtor with respect to which is a debtor under the Bankruptcy Code; (iii) Receivables for which the related collateral has been assigned for repossession or has been repossessed; (iv) Receivables from (A) equity holders of any Borrower, (B) any Affiliate or (C) any employee of an Affiliate; (v) Receivables which have been rescheduled as a result of delinquency status; (vi) Receivables with an original principal balance in excess of Eight Thousand Dollars ($8,000); (vii) Receivables which provide for interest only or no monthly payment; (viii) Receivables secured in whole or in part by real estate; (ix) Receivables not serviced by a Fortiva Borrower, an Affiliate of a Fortiva Borrower, Fortiva Servicer or other Person acceptable to Agent in its reasonable discretion; (x) Receivables purchased by Fortiva Borrowers as part of a bulk purchase in excess of One 

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Million Dollars ($1,000,000) without Agent's prior written approval; (xi) Receivables that are not in compliance with Fortiva Borrowers' underwriting guidelines; or (xii) Receivables which, in Agent's reasonable discretion, do not constitute acceptable collateral.
“Fortiva Borrowers” means, collectively, Fortiva Holdings LLC, Fortiva Funding LLC and Fortiva Capital LLC.
“Fortiva Entities” means a Subsidiary of Atlanticus created in connection with a Securitization Transaction so long as Borrowers have provided Agent at least ten (10) Business Days prior written notice.
“Fortiva Servicer” means Penncro Associates, Inc., Allsec Technologies and APAC Customer Service, Inc. and other entities performing similar services.
“Fortiva Sublimit” means (a) $15,000,000 through and including the Fortiva Sublimit Expiration Date and (b) $0 at all time thereafter.
“Fortiva Sublimit Expiration Date” means May 17, 2014. 12 months from amendment closing
“Permitted Transfer” means either (a) a sale by a Fortiva Borrower to a Fortiva Entity of Securitized Receivables pursuant to the Securitization Transaction, or (b) the incurrence of indebtedness of Fortiva Borrowers secured solely by specific Receivables of Fortiva Borrowers, in each case under clauses (a) and (b) above so long as (i) at such time no Event of Default or Default exists, (ii) Fortiva Borrowers have provided Agent at least ten (10) Business Days prior written notice of their intention to consummate such transfer, (iii) at least one (1) Business Day prior to such transfer Borrowers deliver to Agent an updated Availability Statement which reflects Loan Availability immediately following such transfer, (iv) at least two (2)  Business Days prior to such transfer Borrowers have delivered to Agent a list of the selected Receivables for such transfer, (v) the proceeds of each such financing or sale are remitted directly to Agent, (vi) the advance rate provided to Fortiva Borrowers pursuant to such Securitization Transaction  or indebtedness facility is greater that the advance rate provided pursuant to clause (b) of the definition of Borrowing Base, (vii) prior to or contemporaneously with the consummation of each Permitted Transfer, Borrowers have paid to Agent for the benefit of Lenders a non-refundable release fee in an amount equal to five (5) basis points of the Receivables of Fortiva Borrowers for which Borrowers have requested the release of the Liens in favor of Agent has been requested and (viii) prior to or contemporaneously with the consummation of each such transaction, if required by Agent in its commercially reasonable discretion Fortiva Borrowers have delivered to Agent a fully executed Control Agreement among Fortiva Borrowers and a depository institution reasonably acceptable to Agent (in form and substance acceptable to Agent) into which Fortiva Borrowers shall direct proceeds of all Receivables of Fortiva Borrowers; provided immediately upon the consummation of each Permitted Transfer 

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Agent shall release from escrow a lien release letter (in form and substance acceptable to Agent) previously delivered Fortiva Borrowers.
“Securitization Transaction” means the sale by a Fortiva Borrower to a Fortiva Entity in connection with any (i) financing transaction undertaken by the Fortiva Entities that is secured, directly or indirectly, by all or a portion of the Collateral of Fortiva Borrowers, (ii) sale, lease or other transfer by one of the Fortiva Entities of all or a portion of the Collateral of Fortiva Borrowers or (iii) other asset securitization, secured loan or similar transaction involving all or a portion of the Collateral of Fortiva Borrowers.
“Securitized Receivables” means the Receivables and related security which have been sold or otherwise transferred by a Fortiva Borrower pursuant to a Permitted Transfer.
(c)The Loan.  The introductory provision of Section 2.1 of the Loan Agreement is amended and restated as follows:
Section 2.1    The Loan. Until the Termination Date, Borrowers may request Lenders to make Advances to Borrowers and, subject to the terms and conditions of this Agreement, each Lender severally and not jointly agrees to lend such Lender's Commitment Percentage of each requested Advance up to such Lender's Commitment which Borrowers may repay and reborrow from time to time.  The aggregate unpaid principal amount at any one time outstanding of all Advances shall not exceed the lesser of the Maximum Principal Amount or the Borrowing Base in effect as of the date of determination.  The aggregate unpaid principal amount at any one time outstanding of all Advances used by Fortiva Borrowers shall not exceed the amount determined pursuant to clause (b) of the Borrowing Base definition.
(d)Optional Prepayments.  Section 2.8(a) of the Loan Agreement is amended and restated as follows:
(a)    Optional Prepayments.  Borrowers may prepay the Loan from time to time, in full or in part without premium or penalty, provided that (i) except as otherwise contemplated herein, in the event Borrowers repay the Loan in full at any time prior to the Maturity Date, Borrowers shall pay a sum equal to Two Percent (2.0%) of the Maximum Principal Amount as a prepayment fee, (ii) in the event Fortiva Borrowers repay the Obligations owing by Fortiva Borrowers in full at any time prior to the Fortiva Sublimit Expiration Date and terminate the Commitments of Lenders with respect to Fortiva Borrowers, Borrowers shall pay a sum equal to Two Percent (2.0%) of the Fortiva Sublimit as a prepayment fee, (iii) prepayments shall be in a minimum amount of Ten Thousand Dollars ($10,000) and Ten Thousand Dollars ($10,000) increments in excess thereof; and (iv) partial prepayments prior to the Termination Date shall not reduce Lenders' Commitments under this Agreement and may be reborrowed, subject to the terms and conditions hereof for borrowing, and partial prepayments will be applied first to accrued interest and fees and then to outstanding Advances.  Each Borrower acknowledges that the above described fees are estimates of Lenders' damages in the event of early 

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termination and is not a penalty.  In the event of termination of the credit facility established pursuant to this Agreement, all of the Obligations shall be immediately due and payable upon the termination date stated in any notice of termination.  All undertakings, agreements, covenants, warranties and representations of Borrowers contained in the Credit Documents shall survive any such termination, and Agent shall retain its liens in the Collateral and all of its rights and remedies under the Credit Documents notwithstanding such termination until Borrowers have paid the Obligations to Agent and Lenders, in full, in immediately available funds, together with the applicable termination fee, if any.
(e)Additional Administrative Fee.  A new clause (c) is added to Section 2.9 of the Loan Agreement as follows:
(c)    Additional Administrative Fee. A non-refundable administrative fee of $3,000 shall be due and payable monthly in arrears on the 1st day of each month commencing on May 1, 2013 and continuing until the earlier of (i) Fortiva Sublimit Expiration Date or (ii) the date the Commitment is terminated and the Obligations owing under this Agreement are indefeasibly paid in full, in which event a monthly installment of the administrative fee shall be paid pro-rata on the date of such termination.
(f)Reporting Requirements.  Section 6.2 of the Loan Agreement is amended and restated as follows:
Section 6.2    Reporting Requirements. Borrowers will deliver to Agent (which Agent will thereafter deliver to Lenders):
(a)    within twenty (20) days after the end of each month, (i) company prepared consolidated financial statements of CAR Borrowers' business for such previous month and (ii) commencing with the calendar month ending September 30, 2013, company prepared consolidated financial statements of Fortiva Borrowers' business for such previous month, each consisting of a balance sheet, income statement, and schedules as of the end of such month, all in reasonable detail, prepared in accordance with GAAP consistently applied, subject to year-end adjustments, together with a covenant compliance certificate;
(b)    within one hundred twenty (120) days after the close of each fiscal year, (i) consolidated financial statements of CAR Borrowers and their consolidated Subsidiaries for the fiscal year then ended consisting of a balance sheet, income statement, and statement of cash flow of CAR Borrowers and their consolidated Subsidiaries as of the end of such fiscal year, all in reasonable detail, including all supporting schedules and footnotes, prepared in accordance with GAAP consistently applied, and shall be audited and certified without qualification by an independent certified public accountant selected by CAR Borrowers and acceptable to Agent and accompanied by the unqualified opinion of such accountant and an Annual Compliance Certificate; and cause Agent to be furnished at the time of completion thereof, a copy of any management letter for CAR Borrowers prepared by such certified public accounting firm and (ii) commencing with the fiscal year ending December 31, 2013, consolidated 

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financial statements of Fortiva Borrowers and their consolidated Subsidiaries for the fiscal year then ended consisting of a balance sheet, income statement, and statement of cash flow of Fortiva Borrowers and their consolidated Subsidiaries as of the end of such fiscal year, all in reasonable detail, including all supporting schedules and footnotes, prepared in accordance with GAAP consistently applied, and shall be audited and certified without qualification by an independent certified public accountant selected by Fortiva Borrowers and acceptable to Agent and accompanied by the unqualified opinion of such accountant and an Annual Compliance Certificate; and cause Agent to be furnished at the time of completion thereof, a copy of any management letter for Fortiva Borrowers prepared by such certified public accounting firm;
(c)    within one hundred twenty (120) days after the close of each fiscal year, consolidated financial statements of Atlanticus for the fiscal year then ended consisting of a balance sheet, income statement, and statement of cash flow of Atlanticus and its consolidated Subsidiaries as of the end of such fiscal year, all in reasonable detail, including all supporting schedules and footnotes, prepared in accordance with GAAP consistently applied, and shall be audited and certified without qualification by an independent certified public accountant selected by Atlanticus and reasonably acceptable to Agent (it being acknowledged by Agent that BDO is acceptable as of the date of this Agreement); and cause Agent to be furnished at the time of completion thereof, a copy of any management letter for Atlanticus prepared by such certified public accounting firm; provided as long as Atlanticus remains a public entity, timely filing with the SEC's Edgar System shall constitute delivery in accordance with this Section 6.2(c) of this Agreement so long as so filed within such one hundred twenty (120) period;
(d)    within twenty (20) days after the end of each month, for the month then ending, reports for each of CAR Borrowers and Fortiva Borrowers in form and substance satisfactory to Agent, setting forth an aging of Receivables, Schedule of Receivables and Assignment, an Availability Statement, detailed dealer analysis and reserve report, detailed delinquency report books and records consisting of data tape information, repossession report, and also such other documentation and information reasonably requested by Agent promptly after request therefor by Agent; 
(e)    within twenty (20) days after the end of fiscal quarter, for the fiscal quarter then ending, static pool reports for each of CAR Borrowers and Fortiva Borrowers in form and substance satisfactory to Agent;
(f)    promptly upon the request by Agent from time to time, reports prepared by Borrowers which detail income taxes with respect to the business of Borrowers which have paid as part of the consolidated income tax returns of Atlanticus filed with the Internal Revenue Service; and 
(g)    promptly upon the request by Agent from time to time, such other financial information and reports concerning Fortiva 

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Borrowers and the operations, businesses, affairs, prospects and financial condition of Fortiva Borrowers and their Subsidiaries.
(g)Inspections.  Section 6.3(b) of the Loan Agreement is amended and restated as follows:
(b)    Inspection.  Prior to an Event of Default, Agent shall have the right to, during regular business hours, with reasonable notice, at Borrowers' sole cost and expense, to inspect, audit, and copy the Books and Records of Borrowers and inspect, audit and conduct appraisals of Receivables, provided (i) Borrowers shall not be responsible for the costs and expenses of more than three (3) inspections with respect to CAR Borrowers per calendar year and such cost and expense not to exceed in the aggregate Fifty Thousand Dollars ($50,000) per calendar year and (ii) Borrowers shall not be responsible for the costs and expenses of more than three (3) inspections with respect to Fortiva Borrowers per calendar year and such cost and expense not to exceed in the aggregate Twenty Thousand Dollars ($20,000) per calendar year.  After an Event of Default, Agent shall have the right at any time and from time to time during regular business hours, at Borrowers' sole cost and expense, to inspect, audit, and copy the Books and Records of Borrowers and inspect, audit and conduct appraisals of any Collateral.
(h)Financial Covenants.  Section 6.4 of the Loan Agreement is amended and restated as follows:
Section 6.4    Financial Covenants.  At all times CAR Borrowers shall, on a consolidated basis, maintain the following financial covenants:
(a)    EBITDA Ratio. As of the end of each calendar month, an EBITDA Ratio of not less than 2.00 to 1.0. 
(b)    Senior Debt to Capital Base Ratio.  As of the end of each calendar month, a Senior Debt to Capital Base Ratio of not more than 3.00 to 1.0.
(c)    Collateral Performance Indicator. As of the end of each calendar month, a Collateral Performance Indicator of less than or equal to Nineteen Percent (19%).  
The determination of the financial covenants contained herein shall exclude any asset, liability, expense or income associated with Statement of Financial Accounting Standard No. 13.
(i)Payments to and Transactions with Affiliates.  Section 7.1 of the Loan Agreement is amended and restated as follows:
Section 7.1    Payments to and Transactions with Affiliates.  (a) Make any loan, advance, extension of credit or payment to any Affiliate except for loans, advances, extensions of credit made by Borrowers in the ordinary course of business to Persons described in clause (iv) of the definition of Affiliate or (b) enter into any other transaction, including, without limitation, the purchase, sale, lease or exchange of property, or the rendering or any service, to or with any Affiliate or any equity holder, 

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officer, or employee of any Borrower except for (v) transactions between Borrowers in the ordinary course of business and pursuant to the reasonable requirements of the business of such Borrowers and upon terms found by the board of directors of such Borrowers to be fair and reasonable and no less favorable to such Borrowers than such Borrowers would obtain in a comparable arms' length transaction, (w) payments by CAR Borrowers to Atlanticus for documented allocated overhead costs in the ordinary course of business and in accordance with historic practice in amount not to exceed Twenty Five Thousand Dollars ($25,000) per calendar month, (x) payments by Fortiva Borrowers to Atlanticus for documented allocated overhead costs in the ordinary course of business and in accordance with historic practice in amount not to exceed Twenty Five Thousand Dollars ($25,000 per calendar month, (y) Permitted Tax Distributions permitted pursuant to Section 7.2 of this Agreement and (z) other transactions with or services rendered to any Affiliate of a Borrower in the ordinary course of business and pursuant to the reasonable requirements of the business of such Affiliate and upon terms found by the board of directors of a Borrower to be fair and reasonable and no less favorable to a Borrower than such Borrower would obtain in a comparable arms' length transaction with a Person not affiliated with or employed by a Borrower; provided, however, that Borrowers may in any event pay reasonable compensation to any such employee or officer in the ordinary course of Borrowers' business consistent and commensurate with industry custom and practice for the services provided by such Person.
(j)Negative Pledge.  Section 7.6 of the Loan Agreement is amended and restated as follows:
Section 7.6    Negative Pledge.  Assign, discount, pledge or grant a Lien in or encumber any Receivables or the Collateral other than the sale in the ordinary course of Borrowers' business of (a) Receivables not constituting Eligible Receivables or Eligible Fortiva Receivables which have been charged-off, (b) Receivables not constituting Eligible Receivables or Eligible Fortiva Receivables for collection purposes, (c) Receivables purchased by a Borrower on a recourse basis which are sold to the original seller of such Receivable as a result of a repurchase event with respect thereto, (d) Receivables which are sold to the original seller of such Receivable as a result of a breach of a representation or warranty by such seller with respect thereto, (e) Equipment that is substantially worn, damaged, obsolete or surplus, (f) Receivables of Fortiva Borrowers to community banks for which the associated account debtors have a “prime” credit rating and pursuant to which a Fortiva Borrower retains the associated servicing rights and (g) Permitted Transfers, so long as in each case described in clause (a), (b), (c), (d), (e), (f) or (g) no Default or Event of Default exists immediately prior to and after the consummation of such sale.
(k)Notices.  The following notice address for Borrowers is added to Section 10.4 of the Loan Agreement:
Fortiva Holdings LLC
Five Concourse Parkway, Suite 400
Atlanta, Georgia 30328

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Attn:         General Counsel
Facsimile:     (770) 870-5110

(l)Termination and Release.  Section 10.5 of the Loan Agreement is amended and restated as follows:
Section 10.5    Termination and Release.  
(a)    General Termination and Release.  This Agreement shall not terminate until all amounts due under the Notes, this Agreement and any other Credit Document and other Obligations, together with all interest and costs due, shall have been indefeasibly paid in full and the Commitments have expired or otherwise have been terminated.  Upon such termination and payment of amounts owing under this Agreement, the Collateral securing the Loan, the Notes, this Agreement and the other Obligations shall be released from the provisions of this Agreement and any right, title and interest of Agent in or to the same shall cease.  Thereafter, Agent agrees to deliver to Borrowers such documents as Borrowers are required to release of record any security interest or lien of Agent in the Collateral.
(b)    Fortiva Borrowers.  This Agreement shall terminate with respect to Fortiva Borrowers once all amounts due from Fortiva Borrowers with respect to the Fortiva Sublimit and other amounts owing by Fortiva Borrowers (as determined by Agent in its reasonable discretion) under the Notes, this Agreement and any other Credit Document and other Obligations, together with all interest and costs due from Fortiva Borrowers (as determined by Agent in its sole discretion), shall have been indefeasibly paid in full and the Commitments with respect to Fortiva Borrowers have expired or otherwise have been terminated.  Upon such termination and payment of amounts owing by Fortiva Borrowers under this Agreement, the Collateral of Fortiva Borrowers securing the Loan, the Notes, this Agreement and the other Obligations shall be released from the provisions of this Agreement and any right, title and interest of Agent in or to the same shall cease.  Thereafter, Agent agrees to deliver to Fortiva Borrowers such documents as Fortiva Borrowers are required to release of record any security interest or lien of Agent in the Collateral of Fortiva Borrowers.
(m)Atlanticus.  Borrowers have informed Agent and Lenders that on or about November 30, 2012, CompuCredit Holdings Corporation amended its Certificate of Incorporation to change its name to Atlanticus Holdings Corporation.  Accordingly all references to CompuCredit contained in the Loan Agreement and the other Credit Documents are hereby amended to “Atlanticus”.
3.Amendment Fee.  Upon the effectiveness of this Amendment, Lenders shall have fully earned and Borrowers shall be absolutely and unconditionally obligated to pay to Agent, for the benefit of Lenders, a non-refundable Twenty Thousand Dollars ($20,000) amendment fee (the “Amendment Fee”), which Amendment Fee shall be due and payable in immediately available funds on the date hereof.
4.Effectiveness Conditions.  This Amendment shall be effective upon the completion of the following conditions precedent (all agreements, documents and instruments to be in form and substance satisfactory to Agent and Agent's counsel):
(a)Execution and delivery to Agent by Borrowers and Atlanticus of this Amendment.

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(b)Execution and delivery to Agent by Borrowers of an Amended and Restated Promissory Note (the “Note”).
(c)Execution and delivery to Agent by Fortiva Borrowers and Brian Stone of a Custodian Agreement.
(d)Execution and delivery to Agent by Fortiva Borrowers and US Bank National Association of a Control Agreement.
(e)Receipt by Agent of a copy of each Joining Borrower's (i) certificate of organization, certified as of a recent date by an appropriate officer of such Joining Borrower, (ii) operating agreement certified as of a recent date by an appropriate officer of such Joining Borrower and (iii) a certificate of good standing in such Joining Borrower's state of organization and in each jurisdiction in which such Joining Borrower is qualified to do business, each dated within thirty (30) days from the date of this Amendment.
(f)Receipt by Agent of a certified copy of resolutions of each Joining Borrower's board of managers or board of managers, as applicable, authorizing the execution, delivery and performance of this Amendment, the Note and any other applicable Credit Documents, the pledge of the Collateral to Agent as security for the Obligations and designating the appropriate officers to execute and deliver the Credit Documents, and such certification shall state that the resolutions have not been amended, modified, revoked or rescinded as of the date of such certification.
(g)Receipt by Agent of an incumbency certificate for each Joining Borrower identifying all authorized officers with specimen signatures, certified by an appropriate officer of such Joining Borrower.
(h)Receipt by Agent of Uniform Commercial Code, tax and judgment searches against each Joining Borrower in those offices and jurisdictions as Agent shall reasonably request which shall show that no financing statement, liens, or assignments or other filings have been filed or remain in effect against such Joining Borrower or any Collateral except for Permitted Liens and those other Liens, financing statements, assignments or other filings with respect to which the secured party or existing lender (i) has delivered to Agent Uniform Commercial Code termination statements or other documentation evidencing the termination of its Liens and security interests in Collateral, (ii) has agreed in writing to release or terminate its Lien and security interest in Collateral upon receipt of proceeds of the Advances or (iii) has delivered a Subordination Agreement to Agent with respect to its Lien and security interest in the Collateral, all in a form and substance satisfactory to Agent in its sole discretion.
(i)Execution and delivery to Agent by Borrowers' counsel of a written opinion addressed to Agent and Lenders in form and substance satisfactory to Agent in its sole discretion.
(j)Payment by Borrowers to the Agent of the Amendment Fee.
(k)Such other documents, information and reports listed on the Second Amendment Closing Agenda.
5.Representations and Warranties.  Each Borrower represents and warrants to Agent and Lenders that:
(a)All warranties and representations made to Agent and Lenders under the Loan Agreement and the Credit Documents are true and correct in all material respects.
(b)The execution and delivery by such Borrower of this Amendment, the Note and each assignment, instrument, document, or agreement executed and delivered in connection herewith by such Borrower and the performance by such Borrower of the transactions herein and therein contemplated (i) are and will be within such Borrower's powers, (ii) have been authorized by all necessary organizational action, and (iii) do not and will not violate any provisions of any law, rule, regulation, judgment, order, writ, decree, determination or award or breach any provisions of the charter, bylaws or other organizational documents of such Borrower, or constitute a default or result in the creation or imposition of any security interest in, or lien or encumbrance upon, any assets of such Borrower (immediately or with the passage of time or with the giving of notice and passage of time, or both) under 

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any other contract, agreement, indenture or instrument to which such Borrower is a party or by which such Borrower or its property is bound with failure to comply resulting in a material adverse change in the business, operations, property (including the Collateral) or financial condition of such Borrower.
(c)This Amendment, the Note and any assignment, instrument, document, or agreement executed and delivered by such Borrower in connection herewith will be valid, binding and enforceable against such Borrower in accordance with its respective terms.
(d)No Event of Default or Default has occurred under the Loan Agreement or any of the other Credit Documents.
6.Representations and Release of Claims.  Except as otherwise specified herein, the terms and provisions hereof shall in no manner impair, limit, restrict or otherwise affect the obligations of Borrowers or any third party to Agent and Lenders as evidenced by the Credit Documents.  Borrowers hereby acknowledge, agree, and represent that (a) as of the date of this Amendment, there are no known claims or offsets against, or defenses or counterclaims to, the terms or provisions of the Credit Documents or the other obligations created or evidenced by the Credit Documents; (b) as of the date of this Amendment, no Borrowers has any known claims, offsets, defenses or counterclaims arising from any of Agent's or any existing or prior Lender's acts or omissions with respect to the Credit Documents or Agent's or any existing or prior Lender's performance under the Credit Documents; and (c) Borrowers jointly and severally promise to pay to the order of Agent and Lenders the indebtedness evidenced by the Notes according to the terms thereof.  
7.Collateral.  As security for the payment of the Obligations and satisfaction by Borrowers of all covenants and undertakings contained in the Loan Agreement and the Credit Documents, each Existing Borrower reconfirms the prior security interest and lien on, upon and to, its Collateral, whether now owned or hereafter acquired, created or arising and wherever located and each Joining Borrower hereby assigns and grants to Agent a continuing first security interest and lien on, upon and to, its Collateral, whether now owned or hereafter acquired, created or arising and wherever located.  Borrowers hereby confirm and agree that all security interests and Liens granted to Agent for the ratable benefit of Lenders continue in full force and effect and shall continue to secure the Obligations.  All Collateral remains free and clear of any Liens other than Permitted Liens.  Nothing herein contained is intended to in any manner impair or limit the validity, priority and extent of Agent's existing security interest in and Liens upon the Collateral.
8.Acknowledgment of Indebtedness and Obligations.  Borrowers hereby acknowledge and confirms that, as of the date hereof, Borrowers are indebted to Agent and Lenders, without defense, setoff or counterclaim, under the Loan Agreement  (in addition to any other indebtedness or obligations owed by Borrowers with respect to Bank Products owing to Agent and Wells Fargo Affiliates) in the aggregate principal amount of $20,000,000, plus continually accruing interest and all fees, costs, and expenses, including reasonable attorneys' fees, incurred through the date hereof.
9.Ratification of Credit Documents.  This Amendment shall be incorporated into and deemed a part of the Loan Agreement.  Except as expressly set forth herein, all of the terms and conditions of the Loan Agreement and Credit Documents are hereby ratified and confirmed and continue unchanged and in full force and effect.  All references to the Loan Agreement shall mean the Loan Agreement as modified by this Amendment.
10.Acknowledgment of Atlanticus.  By execution of this Amendment, Atlanticus hereby acknowledges the terms and conditions of this Amendment and Atlanticus hereby ratifies and confirms that the Atlanticus Agreement continues unchanged and in full force and effect; provided, however, Atlanticus agrees and acknowledges that the term “Borrower” in the Atlanticus Agreement includes CAR Borrowers and Fortiva Borrowers.
11.Governing Law.  This Amendment, the Loan Agreement, the Credit Documents and the transactions contemplated hereby or thereby, and any claim, controversy, or dispute arising out of or relating to this Amendment, the Loan Agreement, the Credit Documents and the transactions 

12

contemplated hereby or thereby shall be governed by, construed and enforced in accordance with the laws of the State of Iowa, excluding its conflict of law rules.
12.Counterparts.  This Amendment may be executed in any number of counterparts, each of which when so executed shall be deemed to be an original, and such counterparts together shall constitute one and the same respective agreement.  Signature by facsimile or PDF shall also bind the parties hereto.
[SIGNATURES ON FOLLOWING PAGES]

IN WITNESS WHEREOF, the parties have caused this Amendment to be executed by their respective duly authorized officers as of the date first above written.

EXISTING BORROWERS:
	
	
	CARS ACQUISITION LLC

By:/s/ Marguerite J. Blatz
Name:Marguerite J. Blatz
Title:Manager

	CAR FINANCIAL SERVICES, INC. 

By:/s/ Marguerite J. Blatz
Name:Marguerite J. Blatz
Title:Manager

	CAR FUNDING II, INC.

By:/s/ Jeffrey H. Howard
Name:Jeffrey H. Howard
Title:President

	CONSUMER AUTO RECEIVABLES SERVICING, LLC

By:/s/ Mitch Saunders
Name:Mitch Saunders
Title:Manager

13

[SIGNATURE PAGE TO SECOND AMENDMENT AND JOINDER TO 
LOAN AND SECURITY AGREEMENT]

JOINING BORROWERS:
	
	
	FORTIVA HOLDINGS, LLC

By:/s/ Jeffrey H. Howard
Name:Jeffrey H. Howard
Title:President 

	FORTIVA FUNDING, LLC

By:/s/ Mitch Saunders
Name:Mitch Saunders
Title:Manager

	FORTIVA CAPITAL, LLC

By:/s/ Mitch Saunders
Name:Mitch Saunders
Title:Manager

Acknowledged:

ATLANTICUS HOLDINGS CORPORATION

By:    /s/ William McCamey
Name:    William McCamey
Title:    Treasurer

[SIGNATURE PAGE TO SECOND AMENDMENT AND JOINDER TO 
LOAN AND SECURITY AGREEMENT]

	
		
	AGENT AND LENDER:
	WELLS FARGO BANK, N.A.

By:/s/ Casey P. Johnson
Name:Casey P. Johnson
Title:Senior Vice President

[SIGNATURE PAGE TO SECOND AMENDMENT AND JOINDER TO 
LOAN AND SECURITY AGREEMENT]Exhibit 10.53

 

EXECUTION

 

THIS
SALE AND PURCHASE AGREEMENT (this Agreement) made as of this 30th day of April, 2013 between the parties set forth on Schedule
1 attached hereto (each individually a Seller and collectively the Sellers), and THOR 50 VARICK LLC, a Delaware
limited liability company (the Purchaser). Each of them are individually referred to as a Party, and together as
the Parties.

 

WHEREAS:

 

(A)          Each
Seller owns registered shares with nominal value of EUR 1,25 each in Varick Investments S.à.r.l., a private limited liability
company (société à responsabilité limitée) incorporated under the laws of the Grand Duchy of
Luxembourg, having its registered office at 19-21, boulevard du Prince Henri, L-1724 Luxembourg, Grand Duchy of Luxembourg, having
a share capital of EUR 12,500, registered with the Register of Commerce and Companies of Luxembourg under number B 152.548 (the
Company) as set forth in Schedule 1 hereto (each a Share, collectively, the Shares).

 

(B)          The
Shares represent the entire share capital in the Company.

 

(C)          The
Company owns and will own on the Closing Date (defined herein) all of the shares (the Delco Stock) of Varick Studios Inc.,
a Delaware corporation (hereinafter Delco), which itself owns all of the membership interests (the Membership Interests)
in 50 Varick LLC, a New York limited liability company, having an address of c/o Funaro, Empire State Building, 350 5th
Avenue, 41st Floor, New York, NY 10118, United States (US Propco, and together with the Company and Delco, the
Group Entities), as per the corporate structure attached as Schedule 2 hereto, itself owning all right, title and
interest in and to those certain commercial condominium units designated as commercial condominium Units A and A2 (Block 212,
Lots 1301 and 1307), as more particularly described on Schedule 3 attached hereto and incorporated herein by this reference,
in the building and improvements known as and by the street address 50 Varick Street, New York, New York in 50 Varick Street Condominium
(the Condominium) described in the Declaration dated February 16, 2010, and recorded in the Office of the Register of New
York County on March 12, 2010 as CRFN 2010000086079, as amended by First Amendment to the Declaration dated as of July 26, 2011,
and recorded in the Office of the Register of New York County on March 6, 2012 as CRFN 2012000086110, and by Second Amendment
to the Declaration dated as of June 20, 2012, and recorded in the Office of the Register of New York County on October 24, 2012
as CRFN 2012000422214 (collectively, the Declaration) together with any improvements located therein and an aggregate undivided
interest appurtenant to said units in the “General Common Elements” and the appurtenant interests in the “Unit
A Limited Common Elements” (as such terms are defined in the Declaration (collectively, the Property) as shown on
Exhibit B to the Second Amendment to the Declaration, wherein said condominium units are referred to as Units A and A2,

 

(D)          The
Sellers wish to sell the Shares to the Purchaser and the Purchaser wishes to purchase the Shares from the Sellers (the Sale
and Purchase) on the terms and subject to the conditions set forth herein.

 

(E)          This
Agreement supersedes the letter agreement dated February 21, 2013 between Alessandro Cajrati Crivelli, acting in the name and on
behalf of all Sellers and Thor Urban Investments, LLC.

 

NOW,
THEREFORE, in consideration of the premises, the mutual covenants herein set forth and other good and valuable consideration,
including, the making of a Five Million ($5,000,000) US Dollars mezzanine loan by Thor 50 Varick Bridge Lender LLC (an affiliate
of Purchaser) to Delco on the date hereof (the Mezzanine Loan), the Sellers and Purchaser hereby agree as follows:

 

    	 

    	 

    

 

1.           SALE
AND PURCHASE.

 

(a)          Subject
to the provisions of this Agreement and in particular, but not limited to, subject to the condition precedent included in Section
3(a) hereof, the Sellers shall sell the Shares to the Purchaser and the Purchaser shall purchase the Shares at the Closing.
The ownership of the Shares shall be transferred to the Purchaser on
the Closing Date against payment of the Purchase Price in accordance with Section 2, subject to the terms and conditions
of this Agreement

 

(b)          The
Shares shall be sold free from any and all Encumbrances (except those statutory encumbrances described herein) and together with
all rights attaching to them, including all rights to dividends relating to the current financial year.

 

2.           PURCHASE
PRICE.

 

(a)          The
purchase price (the Purchase Price) of the Shares shall be Twenty Nine Million Seven Hundred Three Thousand Eight
Hundred Seventy Six ($29,703,876.00) US Dollars (the Initial Amount), subject to adjustment as provided herein:

 

		(i)	The Initial Amount is equal to (x)
                                                              $83,750,000.00 US Dollars (y) reduced by any liabilities
                                                              of the Group Entities (including any outstanding construction or
                                                              landlord related work in relation to the Property, the principal
                                                              sum of the Mezzanine Loan and any interest due thereon as of the
                                                              Closing (as defined below) and any loans from the Sellers to the
                                                              Company as set forth on Schedule 1 hereto (the Shareholder
                                                              Loans), but excluding any loan financing between Group
                                                              Entities, contingent liabilities, such as lawsuits or other claims,
                                                              or closing costs) (the Group Entities Liabilities),
                                                              and (z) increased by all available cash at the level of the Group
                                                              Entities (including any deposits or advances paid by the Sellers
                                                              to the Condominium) (the Group Entities Cash Assets) as set
                                                              forth on Schedule 4 hereto;

 

		(ii)	On the Closing Date, the Parties shall determine the amount (the Final Amount) by which
(x) $83,750,000.00 US Dollars exceeds (y) the amount of Group Entities Liabilities on the Closing Date minus the amount of the
Group Entities Cash Assets on the Closing Date; and

 

		(iii)	If the Final Amount is greater than the Initial Amount, the Purchase Price shall be increased by
such difference, and if the Final Amount is less than the Initial Amount, the Purchase Price shall be decreased by such difference.
Notwithstanding the foregoing, the adjusted Purchase Price may not be less than $29,403,876.00 US Dollars or more than $30,003,876.00
US Dollars.

 

    	2

    	 

    

 

The
Purchase Price shall be allocated among the Sellers as set forth on Schedule 1 attached hereto.

 

(b)          On
the Closing Date and as a condition to and prior to the Closing the Purchaser shall: (i) cause the Company to repay to each
Seller, with funds provided to Company by the Purchaser, the Shareholder Loans (in the sums set forth on Schedule 1 next
to each Seller and in the current aggregate sum of $17,218,000 US Dollars as listed on Schedule 4, which sums could increase
if Company borrows more from the Sellers, in which case such schedules will be replaced by updated schedules at the closing, provided
that in no event shall either the Company nor any other Group Entity incur any additional indebtedness from the Sellers or any
third party in excess of $2,000,000 US Dollars in the aggregate (as hereinafter adjusted, the Maximum Amount) (other than
sums borrowed under the Senior Loan), and any such additional indebtedness incurred shall be used solely to pay for work, alterations,
construction, and improvements (or similar uses) to the Property pursuant to the Declaration and/or the Spring Lease, and for
no other purpose) in full satisfaction of all amounts owed by any Group Entity to any Seller; and (ii) (x) utilize a portion of
the Purchase Price in the amount of the sum calculated by Sellers to pay the applicable Transfer Taxes (as defined below) to New
York State and New York City and have those Transfer Taxes paid on the Closing Date by US Propco (with reasonable evidence of
such payment to be provided by Purchaser to Sellers on the Closing Date) and which Transfer Taxes shall be deemed to have been
paid by the Sellers; and (y) pay to each Seller their allocated share of the Purchase Price (after deducting the sum required
to pay the Transfer Taxes as set forth above in clause (ii) of this Section 2(b)) as set forth next to each Seller on Schedule
1 attached hereto (in proportion to their allocation of the projected Purchase Price in Schedule 1). Notwithstanding
the foregoing, the Maximum Amount shall be decreased by the aggregate amount of all contracts, alterations, modifications, terminations
or Change Orders made pursuant to Sections 5(f), (g), (i) or (k). Senior Loan means, collectively, (x) the
acquisition loan entered into between US Propco and Mediocredito Italiano S.p.A. for a total principal amount of $7,800,000 US
Dollars, and (y) the construction loan entered into between US Propco and Mediocredito Italiano S.p.A. for a total principal amount
of $20,000,000 US Dollars. Spring Lease means, collectively, that certain lease between Spring Studios New York, LLC (Spring),
as tenant, and US Propco, as landlord, dated December 19, 2011, as amended by First Amendment to Lease, dated as of March 19,
2013, as guaranteed by Guaranty dated December 19,2011 made by Spring America, Inc.

 

3.           CLOSING.

 

(a)          The
Sale and Purchase is subject to the condition precedent that the closing of the transfer of the Shares (the Closing) shall
occur on a date (the Closing Date) specified by the Purchaser on no less than three (3) Business Days’ notice (provided
that the Closing shall not be required to occur on the date specified by Purchaser or any other date if it would cause Sellers
to breach an agreement to which Sellers are a party, including the Declaration or Spring Lease), but in no event shall the Closing
occur after June 28, 2013, TIME OF THE ESSENCE. The Closing shall take place at the registered office of the Company in Luxembourg
at 17:00 p.m. on the Closing Date, For the avoidance of any doubt, in case the Closing does not occur by June 28, 2013, TIME OF
THE ESSENCE, for whatever reason other than a willful default by Sellers, the Parties expressly agree that this Agreement shall
be considered as null and void and none of the Parties hereto shall have any obligations towards the other Party.

 

(b)          On
the Closing Date, the Sellers or their duly appointed proxyholder, and the Purchaser shall notify Company of the occurrence of
the Sale and Transfer by delivering to the Company a notice substantially in the form as attached hereto as Schedule 5,
which shall include an instruction to the Company to (i) evidence the transfer of the Shares by the appropriate entry on the Company's
shareholders' register, recording the transfers of the Shares to the Purchaser, effective on the Closing Date, and (ii) the filing
of a notice of the transfer of Shares at the Luxembourg Register of Commerce and Companies and to publish such notice in the Luxembourg
official gazette.

 

(c)          Notwithstanding
anything contained in this Agreement, Purchaser shall have the right to terminate this Agreement at any time before the Closing
for any reason or no reason, by giving written notice to the Sellers, and upon the giving of such notice this Agreement shall be
deemed terminated and null and void, and no Party shall have any rights or obligations hereunder.

 

    	3

    	 

    

 

4.           COOPERATION:
CLOSING DELIVERIES: POST-CLOSING.

 

(a)          Sellers
and Purchaser agree that the closing of the transfer of the Shares shall be in accordance with customary practices of Luxembourg
with respect to a sale of shares and New York City with respect to the transfer of real estate (including, without limitation,
apportionments, prorations, closing costs, etc.), provided that Sellers shall pay on the Closing Date all Transfer Taxes, if any,
imposed upon the conveyance of the Shares hereunder. Except as otherwise expressly provided in this Agreement, each Party shall
pay the fees, costs and expenses incurred by it in connection with the entering into and completion of this Agreement. The Sellers
and Purchaser farther agree to cooperate with each other in carrying out the obligations of each Party herein (provided that in
no event shall such cooperation require either Party to make any representations, warranties or covenants or incur any liabilities
not expressly set forth herein), including, without limitation, by executing or delivering all documents and instruments required
to consummate the transfer of the Shares or customary in connection with the sale of real estate in New York City, including,
without limitation, refinancing of any existing mortgage loans, Transfer Tax Returns (as defined below) and withholding tax certificates
in connection with payments by Delco to the Company.

 

(b)          The
following shall be conditions precedent to the Closing (any of which conditions shall be subject to waiver
by the Purchaser at or prior to the Closing Date and none of which conditions shall be deemed a covenant on behalf of Sellers):

 

		(i)	Royal Abstract of New York, LLC or any other title insurer licensed to do business in the State
of New York from which Purchaser has ordered a title insurance report (Title Company) shall issue at Closing, at Purchaser’s
expense, (x) an ALTA owner’s policy of title insurance on the standard form issued in the State of New York with such endorsements
as Purchaser shall request, including, without limitation, a non-imputation endorsement (the Title Policy), insuring that
US Propco has good and marketable title to the Property, subject only to such matters as are acceptable to Purchaser, and (y) a
UCC title insurance policy(ies) insuring that (1) Purchaser has good and marketable title to the Shares, (2) the Company has good
and marketable title to the Delco Stock and (3) Delco has good and marketable title to the Membership Interests, in each case free
of all Encumbrances (collectively, the UCC Policy; together with the Title Policy, collectively, the Policies), each
dated the day of Closing, with liability in the amount of the Purchase Price;

 

		(ii)	all of Sellers’ representations and warranties contained in this Agreement shall be true
and correct, in all material respects as of this date and as of the Closing Date, and Sellers shall have satisfied, observed and
performed all conditions and agreements on its part to be satisfied, observed or performed under the terms and conditions of this
Agreement; and

 

		(iii)	each of the documents and any and all other items required to be delivered by Sellers at Closing
shall have been delivered as provided herein.

 

(c)          At
Closing each Seller shall, to the extent within its control, procure the delivery to the Purchaser of the following (provided that
a delivery shall not be deemed to be within a Seller's control if such Seller is required to do anything or pay any sums (other
than to attorneys or other professionals assisting them or filing fees) to cause such delivery which it is not required by law
or contract to do or pay):

 

		(i)	resignation letters of the managers of the Company;

 

		(ii)	a letter from the Board (as defined in the Declaration), or its managing agent, acknowledging the
Purchaser’s appointment of its representative member(s) of the Board for the Property under the by-laws of the Condominium
(Purchaser hereby acknowledging that since Sellers do not have sole control over the Board, Sellers shall have no liability if
such delivery is not made);

 

    	4

    	 

    

 

		(iii)	a New York City Real Property Transfer Tax Return and New York State Combined Real Estate Transfer
Tax Return and Credit Line Mortgage Certificate (Form TP-584) (collectively, the Transfer Tax Returns), prepared, executed and
acknowledged by US Propco in proper form for submission;

 

		(iv)	to the extent they are not posted at the Property, all Licenses (as defined below);

 

		(v)	a letter signed by Sellers advising
                                                             the Tenant of the transfer of title of the Property and directing
                                                             that all future rent payments be sent to the attention of the Purchaser,
                                                             as Purchaser shall direct;

 

		(vi)	the original Spring Lease or copies thereof, if the original Spring Lease is not available;

 

		(vii)	the original Books and Records (as defined below);

 

		(viii)	(i) a “clean” estoppel certificate (i,e., not alleging any defaults under the Spring Lease
or containing any information materially deviating from, or inconsistent with, the representations contained herein) substantially
in the form attached hereto as Schedule 6 from the Tenant, which shall be dated no earlier than thirty (30) days from the
Closing Date (the Tenant Estoppel), (ii) if required in connection with any financing obtained by Purchaser in connection
with the Closing, a subordination, non-disturbance and attornment agreement with respect to the Spring Lease in favor of Purchaser’s
lenders (the Subordination Agreement) in the standard form required by Purchaser’s lenders or as required pursuant
to the Spring Lease, which is dated no more than thirty (30) days prior to the Closing, from the Tenant, and (iii) a “clean”
estoppel certificate (i.e., not alleging any defaults by US Propco as the owner of the Property under the Declaration or other
Condominium Documents or containing any information materially deviating from, or inconsistent with, the representations contained
herein) as to payment of common charges and assessments under the Condominium Documents, which may be relied on by Purchaser and
by the actual or prospective mortgagees or lenders to, accountants for and/or investors in, US Propco, substantially in the form
attached hereto as Schedule 7 from the Board, which shall be dated no earlier than thirty (30) days from the Closing Date
(the Condominium Estoppel) (Purchaser hereby acknowledging that since Sellers do not have sole control over the entities
who are to execute the Tenant Estoppel, the Subordination Agreement and the Condominium Estoppel, Sellers shall have no liability
if any such delivery is not made);

 

		(ix)	(i) a waiver by Tenant of the Tenant ROFO, (ii) a waiver by the Verizon Units Owner of the Verizon
ROFO and (iii) a waiver by the Board of the Transfer Restriction (Purchaser hereby acknowledging that since Sellers do not have
sole control over the entities who are to execute such waivers, Sellers shall have no liability if any such delivery is not made,
including if the waiver of the Verizon ROFO or the Transfer Restriction is not obtained because the Unit A Renovations and/or the
Unit A2 Separation Work are not completed);

 

		(x)	a set of the Plans and all inspection and test records and reports in Sellers’ possession;
originals, to the extent available, otherwise copies, of all executed Construction Documents. Plans means all drawings, plans and
specifications which describe and show the labor, materials, equipment, fixtures and furnishings necessary for the construction
of the Landlord's Work, including all amendments and modifications thereof made by approved (or deemed approved) Change Orders.
Change Orders means any amendments or modifications to the Plans;

 

    	5

    	 

    

 

		(xi)	a “clean” estoppel certificate
                                                              (i.e., not alleging any defaults or containing any information materially
                                                              deviating from, or inconsistent with, the representations contained
                                                              herein), which shall be dated no earlier than ten (10) Business
                                                              Days from the Closing Date, in form to be provided by Purchaser
                                                              to Sellers no later than thirty (30) days prior to the Closing,
                                                              from each of the Architect and the general contractor under the
                                                              General Contract (Purchaser hereby acknowledging that since Sellers
                                                              do not have control over the entities who are to execute such estoppels,
                                                              Sellers shall have no liability if any such delivery is not made).
                                                              Architect means Adjmi & Andreoli; and

 

		(xii)	any other document, instrument or affidavit that reasonably may be required by the Title Company
or by Purchaser to carry out the terms of this Agreement.

 

(d)          At
Closing (and as a condition to Sellers’ obligation to Close) the Purchaser shall:

 

		(i)	make a payment to each Seller of its part of the Purchase Price, by wire transfer of federal funds
pursuant to instructions to be delivered not later than three (3) Business Days prior to the Closing;

 

		(ii)	fund or have funded the Company with sufficient funds to allow the Company to repay the full amount
of the Shareholder Loans and provide to the Sellers evidence that the payments for the full repayment to each Seller of its part
remaining outstanding under the Shareholder Loans has been made;

 

		(iii)	execute and acknowledge the Transfer Tax Returns, in proper form for submission, if applicable;

 

		(iv)	procure that an extraordinary shareholders’ meeting (or written shareholder’s resolution)
is held (or entered into) and at which it is resolved to approve the accounts of the Company based on interim statements for the
period up to the Closing Date, and acknowledge the resignation of the managers of the Company and, subject to Section 4(f)
below, grant them provisional unconditional discharge (subject to the limits applicable under applicable law) for the performance
of their duties as manager for the period up to the Closing Date; and

 

(e)          US
Propco shall pay on the Closing Date all transfer taxes, if any, imposed upon the conveyance of the Shares hereunder (collectively,
the Transfer Taxes) pursuant to Section 1402 of the New York State Tax Law and all fees and expenses incurred by Sellers
in connection with the conveyance of the Shares, including, without limitation, the fees of Sellers’ legal counsel and Sellers
agree to indemnify and hold Purchaser harmless from and against any and all claims for payment of or otherwise arising from any
such Transfer Taxes, and any reasonable fees and expenses in connection therewith, required to be paid by Sellers. Purchaser
shall pay the premiums payable in connection with obtaining the Policies and any lender’s policy of title insurance and
fees associated with Purchaser’s lender, if applicable.

 

    	6

    	 

    

 

(f)          As
a condition to Sellers’ obligation to Close, the Purchaser, on behalf of itself and all of its affiliates (including, from
and after the Closing, the Group Entities), at the Closing shall release and forever discharge the officers and directors of each
of the Group Entities, and each of their respective former or future affiliates, heirs, successors and assigns, from any and all
claims, demands, proceedings, causes of action, orders, obligations, contracts, agreements, debts and liabilities whatsoever,
whether known or unknown, suspected or unsuspected, whether already arisen, currently existing or arising in the future, both
at law and in equity, arising out of or in connection with the performance of their duties as officers and directors through and
including the Closing Date. At the first annual shareholders' meeting of the Company following the Closing Date, the Purchaser
shall, to the extent required to ensure the legal effectiveness thereof, cause the full and unconditional release and discharge
of the managers and directors of the Company for the performance of their duties through such date to be unconditionally confirmed.
The provisions of this Section 4(f) shall survive the Closing.

 

5.           COVENANTS.

 

Sellers
and the Group Entities covenant and agree that without first obtaining the prior written approval of Purchaser in its sole and
absolute discretion, between the date hereof and the Closing Date (with no liability under any such covenant and agreement to survive
the Closing):

 

(a)          Purchaser
will have approval rights over any and all leases of the Property and Sellers and the Group Entities shall not cause or permit
US Propco to amend, modify or extend, or grant any consent under or waiver of, the Spring Lease or enter into any new leases in
respect of the Property or terminate or accept a surrender of any existing leases;

 

(b)          Purchaser,
its agents, lenders and representatives at any time shall be entitled to enter the Property during reasonable business hours with
reasonable prior notice (and subject to the rights of the Tenant) to perform inspections and tests of the Property. Purchaser shall
deliver evidence of insurance coverage in favor of US Propco reasonably acceptable to US Propco prior to the commencement of the
first such inspection. Upon advance notice to Seller, Purchaser, its agents and representatives shall be entitled to inspect, during
regular business hours, or shall be provided with copies of upon request all books, records, tax records, Tax Returns, registers
and other documents and agreements (collectively, Books and Records) in Seller’s or any Group Entity’s possession
relating to the Property or any such Group Entity, which may be reasonably required by Purchaser;

 

(c)          Sellers
and the Group Entities shall not, and shall cause the Company, Delco or US Propco not to, directly or indirectly, (i) offer to
sell, solicit any offers to purchase or negotiate for the sale or disposal of, or sell, transfer or encumber, any Shares or any
securities or obligations convertible into or exchangeable for, or giving any person any right to acquire any membership interests
in the Company, or any other direct or indirect interests in the Property, the Company, Delco or US Propco, (ii) offer to sell,
or solicit any offers to purchase or negotiate for the sale or disposal of, or sell, transfer or encumber, any of the assets of
the Company, Delco or US Propco, including, but not limited to, the Property and the Spring Lease, or any interest therein, or
(iii) enter into any contract to do any of the things described in clauses (i) or (ii) above;

 

(d)          no
Group Entity may: (i) change its name, identity (including its trade name or names) or its corporate structure without notifying
Purchaser of such change in writing at least thirty (30) days prior to the effective date of such change; (ii) issue any membership
interests or other securities other than those that have been issued as of the date hereof; or (iii) make any distributions to
the holders of its respective membership interests or other securities;

 

(e)          Sellers
shall provide Purchaser with a copy of any notice of default received by US Propco with respect to any financing or lending arrangement
for which the Property may act as collateral;

 

    	7

    	 

    

 

(f)          not
enter into, renew, modify or extend any contracts or other agreements to the extent the cost thereof would exceed $100,000.00 US
Dollars per contract (or the cost of which in the aggregate would exceed the available Maximum Amount) which could bind Purchaser,
any Group Entity or the Property after Closing, except to the extent specifically permitted under this Agreement or required by
law or the Spring Lease or in order to complete the Unit A Renovations or Unit A2 Separation Work, as same are set forth in the
Declaration, or unless terminable on thirty (30) days' notice (provided, however, that due to the claim (One York Claim) made by
the owner of that certain building known as “One York" against US Propco, Sellers shall have the right to enter into
contracts required for the carrying out of any work (One York Claim Work) necessary to comply with law, including any directive,
judgment or order from a judge or agency, in connection with such, claim or to otherwise resolve such claim); in the event Sellers
or any Group Entity enter into any renewal, modification or extension of any contract or other agreement, they shall provide Purchaser
with a copy thereof as soon as reasonably possible after the execution thereof and shall attempt to provide Purchaser with a copy
before the execution thereof;

 

(g)          not
alter the Property or consent to such alteration to the extent the cost of any such alteration would exceed $100,000,00 US Dollars
per alteration (or the cost of which in the aggregate would, exceed the available Maximum Amount), except to complete the Landlord’s
Work (as Landlord’s Work is modified in accordance with the Spring Lease) or comply with law or the Spring Lease or the Declaration
or carry out the One York Claim Work, and deliver the Property in substantially its present condition, usual wear and tear excepted,
and subject to the foregoing rights to alter the Property; in the event Sellers or any Group Entity enter into or consent to any
alteration to the Property, they shall provide Purchaser with copies of plans and specifications, and of all construction contracts
and subcontracts, with respect to such alteration as soon as reasonably possible after entering into or consenting to any such
alteration and shall attempt to provide Purchaser with a copy before entering into or consenting to any such alteration;

 

(h)          continue
construction of the Landlord’s Work (as Landlord’s Work may be modified in accordance with the Spring Lease) with diligence
and continuity in a good and workmanlike manner in accordance with the Plans; permit Purchaser and its representatives and consultants
(after providing evidence of insurance reasonably acceptable to Sellers) to enter upon the Property, at reasonable times and upon
reasonable notice, to inspect the Landlord’s Work and all materials to be used in the construction thereof and examine all
detailed plans and shop drawings which are or may be kept at the construction site and cooperate and use reasonable efforts to
cause the general contractor under the General Contract and subcontractors under all Major Subcontracts to cooperate with the Purchaser
to determine the status of such construction, including, without limitation, permitting the Purchaser and its representatives to
attend construction meetings;

 

(i)          perform
all of US Propco's material obligations under the Construction Documents, the Spring Lease and the Condominium Documents with respect
to the Landlord’s Work and comply with all Licenses pertaining to the construction of the Landlord’s Work;

 

(j)
         not make or permit any modification to or termination of any of the Construction Documents costing in excess of $100,000.00 US
Dollars per alteration (or the cost of which in the aggregate would exceed the available Maximum Amount), except as required by
the Spring Lease or applicable law or with regard to the One York Claim Work; in the event Sellers or any Group Entity enter into
any modification to or termination of any of the Construction Documents, they shall provide Purchaser with a copy thereof as soon
as reasonably possible after the entering into thereof and shall attempt to provide Purchaser with a copy before the entering into
thereof;

 

(k)          not
permit the performance of any work pursuant to any Change Order costing more than $100,000.00 US Dollars per Change Order (or the
cost of which in the aggregate would exceed the available Maximum Amount), except as required by applicable law or the Spring Lease
or with regard to the One York Claim Work; in the event Sellers or any Group Entity enter into any Change Order, they shall provide
Purchaser with, a copy thereof as soon as reasonably possible after the entering into thereof and shall attempt to provide Purchaser
with a copy before the entering into thereof;

 

    	8

    	 

    

 

(l)           not
permit, except if obligated by law, any further Encumbrance to affect the Shares, the Membership Interests or the Delco Stock or
any encumbrance on the Property that would prevent Title Company from issuing the Title Policy insuring that US Propco has good
and marketable title to the Property;

 

(m)          Sellers
will, and shall cause US Propco to, cooperate with Purchaser with respect to obtaining an assignment of the Senior Loan without
the imposition of a fee by the lender thereunder (and in no event shall such cooperation require Sellers to incur any sums, including
the payment of any sums to such lender or its legal counsel, with any such sums to be paid by Purchaser);

 

(n)          prepare
and file (or cause Delco to prepare and file) all Tax Returns relating to Delco and the Company for all tax periods relating to
Delco and the Company that end on or before the Closing Date, and shall pay or cause to be paid all Taxes (as defined below) shown
due thereon; provide Purchaser with copies of each such Tax Return at least ten (10) days prior to each such Tax Return’s
due date (or the date of filing, if earlier) and permit Purchaser to review and comment on each such Tax Return; provided, however,
that the federal, state and local corporate income Tax Returns for 2012 shall be filed before the Closing Date; and

 

(o)          Purchaser
and Sellers agree that, in the case of any taxable period that includes (but does not end on) the Closing Date (a Straddle
Period), the amount of Taxes based on or measured by income or receipts of the Company, Delco and Propco, as the case may
be, for such Straddle Period shall be determined based on an interim closing of the books as of the close of business on the Closing
Date and the amount of other Taxes of the Company, Delco and US Propco for such Straddle Period shall be deemed to be the amount
of Tax determined as if the Straddle Period was a complete taxable year, multiplied by a fraction, the numerator of which is the
number of calendar days in the portion of the Straddle Period ending on the Closing Date and the denominator of which is the number
of calendar days in the entire Straddle Period. The amount of income Taxes due for such Straddle Period shall be computed using
the applicable federal, New York State and New York City corporate income tax rates. Taxes means any and all taxes, fees,
levies, duties, tariffs, imposts and other charges in the nature of a tax (together with all interest, penalties, additions to
tax and additional amounts imposed with respect thereto) imposed by any government or taxing authority.

 

Purchaser
hereby covenants as follows:

 

(a)          From
and after the Closing Date, Purchaser shall cause each of the Group Entities to indemnify, defend and hold harmless, to the fullest
extent permitted under applicable law and the respective Group Entity's bylaws, the individuals who on or prior to the Closing
Date were directors, officers or employees of such respective Group Entity (collectively, the D&O Indemnitees) with
respect to all acts or omissions by them in their capacities as such or taken at the request of such respective Group Entity at
any time prior to the Closing Date. Purchaser agrees that all rights of the D&O Indemnitees to indemnification and exculpation
from liabilities for acts or omissions occurring at or prior to the Closing Date pursuant to any organizational document, bylaw,
indemnification agreement or other arrangement of such Group Entity shall survive the Closing Date and shall continue in full
force and effect in accordance with their terms, and otherwise to the fullest extent permitted by law. Such rights shall not be
amended, or otherwise modified in any manner that would adversely affect the rights of the D&O indemnitees, unless such modification
is required by law. In addition, Purchaser shall cause each Group Entity to advance and pay any expenses of any D&O Indemnitee
under this paragraph as incurred to the fullest extent permitted under law.

 

    	9

    	 

    

 

6.           REPRESENTATIONS.

 

Each
Seller severally represents and warrants to the Purchaser, as of the date hereof and the Closing Date (with no liability under
any such representation or warranty to survive the Closing, except as set forth in Section 6(f)), that to its knowledge:

 

(a)          it
is either an individual having full legal capacity to enter into a contract or is duly organized and validly existing under the
laws of its country of incorporation;

 

(b)          it
has the power to execute and deliver this Agreement, any power of attorney granted or to be granted to Alessandro Cajrati Crivelli
(the Attorney in Fact) in relation to the negotiation and execution of this Agreement (the Sellers’ POAs)
and each of the documents to be entered into on or before Closing (the Sellers’ Closing Documents) and to perform
its obligations under each of them and has taken or, in the case of the Sellers’ Closing Documents, will at the time of
execution have taken all action necessary to authorize such execution and delivery and the performance of such obligations;

 

(c)          this
Agreement and the Sellers’ POAs constitute, and the Sellers' Closing Documents will, when executed, constitute legal, valid
and binding obligations of each Seller in accordance with their respective terms;

 

(d)          the
Sellers’ POAs are not revoked on the date of signature of this Agreement and the execution and delivery by the Attorney in
Fact of this Agreement is, and any Sellers' Closing Documents will at the time of execution be, authorized under the Sellers’
POAs;

 

(e)          the
execution and delivery by the Sellers of this Agreement, the Sellers’ POAs and the Sellers' Closing Documents and the performance
of the obligations of the Sellers thereunder and each of them do not and will not conflict with or constitute a default under any
provision of; (i) the constitutional documents of the Sellers (to the extent applicable); (ii) any agreement or instrument to which
each Seller is a party or by which each Seller is bound and which is material in the context of the transactions contemplated hereby
(assuming the waivers described in Section 4(c)(ix) from the Verizon Units Owner, the Board and Tenant are obtained); or
(iii) any law, lien, lease, order, judgment, award, injunction, decree, ordinance or regulation or any other restriction of any
kind or character by which each Seller is bound;

 

(f)          all
authorizations from, and notices or filings with, any governmental or other authority that are necessary to enable each Seller
to execute, deliver and perform its obligations under this Agreement and the Sellers’ Closing Documents have been obtained,
or made (as the case may be) and are in full force and effect and all conditions of each such authorization have been complied
with, and the Company’s share register is up to date and has been correctly maintained throughout the existence of the Company
(with the foregoing representation regarding the Company’s share register to survive the Closing);

 

    	10

    	 

    

 

(g)          all
of the Shares set forth next to each Seller on Schedule 1 attached hereto are fully and exclusively owned by such Seller
free and clear of all Encumbrances and, upon the consummation of the transactions contemplated hereby, the full ownership of the
Shares shall be transferred to the Purchaser and the Shares shall be assigned and delivered to Purchaser free and clear of all
Encumbrances. Encumbrance means any mortgage, liabilities, obligations, restrictions on transfer, claims, encumbrances, charge,
pledge, lien or other security interest securing any obligation of any person or any other agreement or arrangement having a similar
effect, any options, warrants, pre-emption rights, rights of first offer and rights of first refusal, and any equity or interest
of any third party of any nature (excluding, with regard to each of the foregoing, any statutory rights). The Shares constitute
one hundred percent (100%) of the issued and outstanding registered shares of the Company, which represent all of the registered
shares of the Company. The Company owns (both legally and beneficially) one hundred percent (100%) of, and has good and valid title
to, free and clear of any Encumbrances, the issued and outstanding shares of common stock of Delco, which constitutes all of the
capital stock of Delco. Delco owns (both legally and beneficially) one hundred percent (100%) of, and has good and valid title
to, free and clear of any Encumbrances, other than any security interest granted in connection with the Mezzanine Loan, the issued
and outstanding membership interests of US Propco, which constitutes all of the membership interests of US Propco;

 

(h)          each
Group Entity is duly organized, validly existing and in good standing under the laws of its jurisdiction of organization. US Propco
is authorized to do business in New York and has all requisite power to lease and operate the Property and to carry on its business
as currently conducted;

 

(i)           there
are no outstanding agreements or commitments, oral or written, options, warrants, calls or other rights of any kind to purchase
or acquire the Shares, Delco Stock or Membership Interests;

 

(j)           the
Company does not (x) conduct any business, (y) have any liabilities and is not a party to any contract (other than the Shareholder
Loans) or (z) own any assets, other than its ownership of the Delco Stock. Delco does not (1) conduct any business, (2) have any
liabilities (other than the Mezzanine Loan) and is not a party to any contract or (3) own any assets, other than its ownership
of the Membership Interest;

 

(k)          except
for the matters set forth on Schedule 8, there is no action, suit, litigation, hearing, claim, investigation or proceeding
(Proceeding) pending against the Property or any Group Entity, or, to Sellers’ knowledge, threatened in writing
with respect to the any Group Entity or all or any portion of the Property. There is no outstanding order, judgment, writ, award,
ruling, charge, injunction or decree of any court or governmental agency against or naming any Group Entity or the Property;

 

(l)          other
than as set forth on Schedule 9, there are no intercompany debts, accounts payable, advances or liabilities of any kind
between the Group Entities, and between any Group Entity and any Seller, or any of Sellers’ affiliates;

 

(m)         the
Company has never engaged in a trade or business in the United States, as defined in Section 864 of the Internal Revenue Code
of 1986, as amended (the Code), and has never had “effectively connected income" with a United States
trade or business, as defined in Section 864 of the Code. As of Closing, the Company has not filed any United States Tax Returns
(as defined below) and has never been required to file such returns. The Company has maintained an office or place of business
only in Luxembourg and has not engaged in a trade or business in any other location. The Company has filed any return, declaration,
report, election, claim for refund or information return or other statement of form relating to, filed or required to be filed
with any tax authority (Tax Returns) required under the laws of Luxembourg and in any other jurisdiction where the
Company has been required to file such Tax Return and has made all payments required thereunder. There are no proceedings now
occurring or threatened against the Company by any tax authority in Luxembourg or in any jurisdiction outside the United States;

 

    	11

    	 

    

  

(n)          Delco
and US Propco have filed all required Tax Returns, including but not limited to Tax Returns required under Section 1441 or 1445
of the Code, that are or were required to be filed for the applicable tax periods prior to the date hereof, and have paid all Taxes
due thereon and no waiver or extension is in effect with respect to the filing of any such Tax Return or the payment of any Tax
by the Company, Delco and Propco, and such Tax Returns are true, correct, and complete in all material respects and, to the best
of Sellers’ knowledge, none of the Company, Delco or Propco or the Sellers have received any written notice on or prior to
the date hereof of any pending adjustment relating to such Tax Returns. The Tax Returns of Delco for the years 2010 and 2011, copies
of which have been previously delivered to Purchaser,, are true, correct and complete, No federal, state or local tax authority
has asserted any Tax deficiency or lien against the Company that has not been paid which may be expected to result in a Tax deficiency
or lien, except for liens for property Taxes not yet due and payable, and there is no pending audit or inquiry from any federal,
state or local tax authority with respect to the Company or Delco which may be expected to result in a material Tax deficiency
or lien;

 

(o)          there
are no leases, licenses or occupancy affecting, encumbering or conferring any rights or estate in the Property other than the
Spring Lease, true, correct and complete copies of which have been delivered to the Purchaser. The Spring Lease is in full force
and effect in accordance with its terms and has not been modified, amended, renewed or extended. No broker, finder or other party
is entitled to a commission or any other compensation which is unpaid with respect to the Spring Lease;

 

(p)          attached
hereto as Schedule 10 is a true, correct and complete list of the contracts, agreements or warranties providing for the
design, development, engineering, construction, provisioning, equipping, furnishing, repair and service of the Landlord's Work
(collectively, Construction Documents) which currently affect the Property. Sellers have delivered to Purchaser true and complete
copies of all Construction Documents, all of which are in full force and effect. To Sellers’ knowledge, there is no outstanding
and uncured claim of default made under any of the Construction Documents prior to the date hereof on the part of any party thereto;

 

(q)          the
cost of the Unit A Renovations and the Unit A2 Separation Work are included in the Group Entities Liabilities in Schedule 4
hereto, and “Landlords Work Cost” (as defined in the Spring Lease), along with cost of the Unit A Renovations
and the Unit A2 Separation Work, as of the date hereof is in the aggregate amount of $26,227,000.00 US Dollars, as set forth on
Schedule 11;

 

(r)          (x)
the Plans have been approved by all applicable Governmental Authorities and, to the extent required, the Board, and any necessary
consents under or waivers of the Condominium Documents with regard to the Plans have been obtained, (y) the General Contract and
all Major Subcontracts are in effect and provide for the construction of the Landlord’s Work and (z) the parties to the Spring
Lease have not entered into any agreement with respect to whether any “Tenant Delays” (as defined in the Spring Lease)
currently exist. General Contract means that certain Agreement between US Propco, as owner, and Foundations Group, Inc.,
as contractor, dated June 7, 2012 (together with all riders, addenda and other instruments referred to therein as “contract
documents”), as the same may be modified, supplemented or amended in accordance with this Agreement. Major Subcontract means
any one or more contracts or work orders either related to the construction of the Landlord’s Work with the same contractor
or supplier aggregating $10,000.00 US Dollar's or more;

 

    	12

    	 

    

 

(s)          no
consent, approval or action of, filing with or notice to the Board or the owner of the Verizon Units (the Verizon Units Owner)
on the part of US Propco or the Sellers is required in connection with the execution, delivery and performance of this Agreement
or any other documents required to be delivered by the Sellers under this Agreement or the consummation of the transactions contemplated
hereby or thereby, except (i) as set forth in Section 7 of Exhibit H of the Declaration (the Transfer Restriction) and accordingly
such Transfer Restriction must be waived or the Unit A Renovations must be Substantially Completed (as such terms are defined in
the Declaration) (Purchaser hereby acknowledging and agreeing that the Unit A Renovations and Unit A2 Separation Work are not anticipated
to be Substantially Completed by the Closing and Sellers, and that since Sellers do not have sole control over the entity to execute
such waiver of the Transfer Restriction, Sellers shall have no liability if such waiver is not obtained, including if such waiver
is not obtained because the Unit A Renovations and Unit A2 Separation Work are not Substantially Completed by the Closing), (ii)
notice of any sale must be provided to the other unit owners in the Condominium and the Board within five (5) “Business Days”
(as defined in the Declaration) after any such sale, and (iii) for the Tenant ROFO and the Verizon ROFO (as such terms are defined
below);

 

(t)          the
“Common Charges” and “Unit Expenses” (as such terms are defined in the Declaration) with respect to the
Property for the fiscal year of 2012-2013 average approximately $20,000 US Dollars per month for Common Charges and Unit Expenses
are comprised of property taxes, annual insurance premiums of approximately $35,000 and submetered electric (after the submeters
are installed), and Sellers are current in payment of such sums; there are no Condominium assessments against the Property now
pending or, to Sellers’ knowledge, contemplated for the future (Purchaser hereby acknowledging that approximately $400,000
of the $750,000 reserve is being applied to repair and restore the common area portion of the roof);

 

(u)          attached
hereto as Schedule 12 is a true, correct and complete list of all certificates, permits, building permits, licenses and
authorizations from any Governmental Authority having jurisdiction over the Property which permit the lawful use, operation, development
and construction thereof and of the Condominium, including all Licenses necessary for the construction of the Landlord’s
Work (the Licenses), in effect as of the date hereof;

 

(v)          no
person or entity has, and none of the Sellers or the Group Entities have granted or entered into, any rights of first offer to
purchase, rights of first refusal to purchase, or purchase options with respect to the Property or to purchase the Shares, the
Property or any share or other capital security of any of the Group Entities, or any part thereof, directly or indirectly, except
for (i) the Tenant pursuant to Article 11 of the Spring Lease (the Tenant ROFO), and (ii) the Verizon Units Owner
pursuant to Section 4 of Exhibit H of the Declaration (the Verizon ROFO);

 

(w)          Sellers
have delivered to Purchaser true, correct and complete copies of the Condominium Documents. Condominium Documents means (i) any
“no-action letter” issued by the New York State Department of Law in lieu of filing an Offering Plan for the Condominium;
(ii) the Declaration (including all amendments thereof); and (iii) the Condominium’s by-laws and rules and regulations. The
Condominium Documents are in full force and effect and there is no outstanding and uncured claim of default made thereunder on
the part of any party thereto;

 

(x)          US
Propco has paid the “Backup Generator Payment” (and has not received any reimbursement of such amount) and the “Increased
Cost” to the Verizon Units Owner and the Verizon Units Owner has completed the Verizon Separation Work (as all such terms
are defined in the Declaration); and

 

    	13

    	 

    

 

(y)          Sellers
have no knowledge of (i) the presence of airy Hazardous Substances at, on, under and/or affecting the Property in violation of
any Environmental Laws or (ii) any spills, releases, discharges, or disposal of Hazardous Substances that have occurred or are
presently occurring on or onto the Property that are required to be reported by Environmental Laws or are in violation of Environmental
Laws; and Seller has received no written notice from the authorities of any failure to comply with all applicable Environmental
Laws relating to the generation, recycling, reuse, sale, storage, handling, transport and disposal of any Hazardous Substances
in connection with the construction on, or operation and use of, the Property. Hazardous Substances shall mean (i) any
“hazardous substance” or “hazardous waste” or “hazardous chemical” defined as such in (or
for the purpose of) any Environmental Law; (ii) any other substance that is currently subject to any other applicable Environmental
Laws, including, without limitation, PCBs, asbestos and asbestos containing materials. Environmental Laws shall mean all
federal, state and local laws, statutes, ordinances and regulations, now or hereafter in effect, as amended or supplemented from
time to time, including, without limitation, applicable judicial or administrative orders, consent decrees and binding judgments
relating to the regulation and protection of human health, safety, the environment and natural resources, and any federal, state
or local transfer of ownership notification or approval statutes.

 

The
representations and warranties of Sellers set forth in Section 6(f) as restated as of the Closing shall survive the Closing
indefinitely. The prevailing party in any litigation arising from a claim under this paragraph shall be entitled to reimbursement
for all reasonable legal fees and expenses in connection therewith.

 

7.          NOTICES.

 

All
notices, requests, demands and other communications hereunder shall be in writing and shall be deemed to have been duly given if
(i) mailed by overnight express mail (whether through the U.S. Postal Service, Federal Express or similar courier), or (ii) hand
delivered, and addressed as follows:

 

	(a)	
        To
        the Sellers:

         

        c/o
        Funaro & Co.

        350
        Fifth Avenue, 41st Floor

        New
        York, NY 10118

        Attention:
        Luigi Perin

	 	 
	Copy to:	
        Robert
        Epstein, Esq.

        c/o
        Newman Ferrara LLP

        1250
        Broadway, 27th Floor

        New
        York, NY 10001

	 	 
	(b)	
        To
        the Purchaser:

         

        c/o
        Thor Equities, LLC

        25
        West 39th Street

        New
        York, New York 10018

        Attention:
        Joseph J. Sitt and Cory Elbaum

	 	 
	Copy to:	Morris Missry, Esq.
	 	c/o Wachtel Masyr & Missry LLP
	 	885 Second Avenue
	 	New York, New York 10017

 

    	14

    	 

    

 

All
notices, requests, demands and other communications hereunder shall be effective if mailed, as set forth above, one (1) Business
Day after deposit with the United States Post Office or other overnight courier, or if hand delivered, as set forth above, when
delivered. Business Day means a day (other than a Saturday or Sunday) on which banks are generally open in Luxembourg and New York
City for normal business. Either Party by notice in writing mailed to the other as hereunder provided may change the address to
which future notices, requests, demands and other communications hereunder to such Party shall be mailed.

 

8.           ATTORNEY
IN FACT.

 

In
furtherance of the authority granted to the Attorney in Fact under the Sellers’ POAs, each Seller hereby irrevocably appoints,
designates and authorizes the Attorney in Fact to take such action on its behalf under the provisions of this Agreement, the Sellers'
Closing Documents and each other ancillary document and to exercise such powers and perform such duties as are expressly delegated
to it by the terms of this Agreement, the Sellers' Closing Documents or any other ancillary document, together with such powers
as are reasonably incidental thereto, and to act as his, her or its agent and attorney-in-fact, with authority to execute all instruments
as if signed by such Seller, with respect to all matters arising under this Agreement, the Sellers' Closing Documents or any other
ancillary document, including, without limitation, the following:

 

(a)          selling
such Seller’s Shares to Purchaser in accordance with the terms of this Agreement, the Sellers' Closing Documents and the
other ancillary documents;

 

(b)          delivering
to Purchaser the shareholders’ register of the Company representing such Seller’s Shares;

 

(c)          receiving
notices pursuant to this Agreement, the Sellers' Closing Documents and any other ancillary document; and

 

(d)          taking
all other actions relating to the rights and obligations of the Sellers under the Sellers' Closing Documents that the Attorney
in Fact, in his sole discretion, deems appropriate.

 

All
actions taken by the Attorney in Fact thereunder shall be conclusive and binding upon all of such Sellers and their successors
as if expressly confirmed and ratified in writing by each of them and no Seller shall have the right to object, dissent, and protest
or otherwise contest the same. The foregoing agency and power of attorney with respect to each Seller shall become effective upon
execution of this Agreement, is irrevocable and shall remain in full force and effect thereafter.

 

9.           MISCELLANEOUS.

 

(a)          Benefits
of Agreement. This Agreement will inure to the benefit of, and be binding upon, each successor, assign, heir and legal representative
of the Sellers and Purchaser. No other person, party or entity shall have any rights hereunder nor shall any other person, party
or entity be entitled to rely upon the terms, covenants and provisions contained herein.

 

    	15

    	 

    

 

(b)          Assignments.
None of the rights or obligations under this Agreement may be assigned or transferred without the prior written consent of Seller
Representative and Purchaser. Notwithstanding the foregoing, Purchaser may assign this Agreement or its rights hereunder, in whole
or in part, directly or indirectly, without Seller's consent, provided that Joseph J. Sitt, or trusts for the benefit of Joseph
J. Sitt or his family, continues to own, directly or indirectly, no less than a 10%
direct or indirect interest in Purchaser or in any such assignee. The term “Purchaser” shall be deemed to include the
assignee under any such effective assignment (and, for avoidance of doubt, the assignor shall not be released by any such assignment).

 

(c)          Governing
Law. This Agreement and any non-contractual obligations arising out of or in connection with it shall be governed by the laws
of the Grand Duchy of Luxembourg. Any dispute arising in connection with this Agreement shall be submitted to the competent courts
of the district of Luxembourg, Grand Duchy of Luxembourg. The Parties hereby agree and consent that any process or notice of motion
or other application to any such court in connection with any such action or proceeding may be served upon the Parties by registered
or certified mail (or its equivalent) to or by personal service at the last known address of the Parties, whether such address
be within or without the jurisdiction of any such court. The provisions of this Section 9(c) shall survive the Closing Date
or the termination hereof.

 

(d)          Further
Assurances. On or after the Closing each Party shall, at its own cost and expense, execute and do (or procure to be executed
and done by any other necessary party) all such deeds, documents, acts and things as the other Party may from time to time reasonably
require in order to vest any of the Shares in the Purchaser or as otherwise may be necessary to give full effect to and for carrying
out the intentions or facilitating the consummation of this Agreement or for the better assuring, conveying, assigning, transferring
and confirming unto Purchaser the Shares. The provisions of this paragraph shall survive the Closing.

 

(e)          Broker.
Sellers and Purchaser represent and warrant to each other that neither Sellers nor Purchaser knows of any broker who has claimed
or may have the right to claim a commission in connection with this transaction. Sellers and Purchaser shall indemnify and defend
each other against any costs, claims or expenses, including attorneys’ fees, arising out of the breach on their respective
parts of any representations, warranties or agreements contained in this clause. The provisions of this paragraph shall survive
Closing or earlier termination of this Agreement.

 

(f)          Standstill.
From the date hereof until the Closing or earlier termination of this Agreement in accordance herewith:

 

		(i)	Sellers shall not, directly or indirectly, (x) offer to sell, or solicit any offers to purchase
or negotiate for the sale or disposal of any Shares or any securities or obligations convertible into or exchangeable for, or giving
any person any right to acquire any membership interests in the Company, or any other direct or indirect interests in the Property,
the Company, Delco or US Propco, or (y) enter into any contract to do any of the things described in clause (x) above; and

 

		(ii)	Sellers shall not, and shall cause the Company, Delco or US Propco not to, directly or indirectly,
(x) offer to sell, or solicit any offers to purchase or negotiate for the sale or disposal of any of the assets of the Company,
Delco or US Propco, including, but not limited to, its interests in the Property and the Spring Lease, or (y) enter into any contract
to do any of the things described in clause (x) above.

 

    	16

    	 

    

 

(g)          Severability.
Should any clause, section or part of this Agreement be held or declared to be void or illegal for any reason, all other clauses,
sections or parts of this Agreement which can be effected without such illegal clause, section or part shall nevertheless continue
in full force and effect.

 

(h)          Waiver.  No
waiver of the provisions hereof shall be effective unless in writing and signed by the Party to be charged with such waiver. No
waiver shall be deemed a continuing waiver or waiver in respect of any subsequent breach or default, either of similar or different
nature, unless expressly so stated in writing.

 

(i)          Headings.
The headings or captions under sections of this Agreement are for convenience and reference only and do not in any way modify,
interpret or construe the intent of the Parties or affect any of the provisions of this Agreement.

 

(j)           Integration. This Agreement
constitutes the entire agreement of the Parties with respect to the subject matter hereof. The representations, warranties, covenants
and agreements set forth in this Agreement constitute all the representations, warranties, covenants and agreements of the Parties
hereto and upon which the Parties have relied.

 

(k)          Amendments. Except as may be
specifically provided herein, no change, modification, amendment, addition or termination of this Agreement or any part thereof
shall be valid unless in writing and signed by or on behalf of the Party to be charged therewith.

 

(l)          Counterparts.
This Agreement may be executed in any number of counterparts and by each Party on separate counterparts. Each counterpart is an
original, but all counterparts, taken together, shall constitute one and the same agreement. Delivery of an executed counterpart
signature page of this Agreement by e-mail (pdf) or fax shall be as effective as delivery of a manually executed counterpart of
this Agreement.

 

(m)       
Survival. Except as specifically
and expressly set forth herein, in no event shall any representations, warranties or covenants herein survive the Closing.

 

(n)        Remedies.
In case the Sale and Purchase is not consummated due to a willful default of any of the Sellers of any obligations (including
a willful default under a representation) under this Agreement, the Purchaser is entitled to,
at Purchaser’s option, (i) seek specific performance against the Sellers or (ii) pursue any other remedy available at law
or in equity. In the event of any non-willful Seller default (including a non-willfuf breach of a representation) or the failure
of a condition precedent, Purchaser’s remedies shall be limited to the termination of this Agreement.

 

IN
WITNESS WHEREOF, the Parties hereto have executed this Agreement as of the day, month and year first above written.

 

[SIGNATURES
TO FOLLOW] 

 

    	17

    	 

    

 

SELLERS

 

	SIGNED by:	/s/ Alessandro Cajrati Crivelli	 

Alessandro Cajrati Crivelli, as attorney-in-fact
for GREENCAGE S.A., Société de Titrisation, pursuant to Power of Attorney, dated March 4, 2013

 

	SIGNED by:	/s/ Alessandro Cajrati Crivelli	 

Alessandro Cajrati Crivelli, as attorney-in-fact for KENSINGTON
SQUARE HOLDING S.A., Société de Titrisation, pursuant to Power of Attorney, dated March 4, 2013

 

	SIGNED by:	/s/ Alessandro Cajrati Crivelli	 

Alessandro Cajrati Crivelli, as attorney-in-fact for SCLAREA
FOUR S.A., pursuant to Power of Attorney, dated March 4, 2013

 

	SIGNED by:	/s/ Alessandro Cajrati Crivelli	 

Alessandro Cajrati Crivelli, as attorney-in-fact for HAWKSFORD
TRUSTEES JERSEY LTD as Trustee of the Dog Trust, pursuant to Power of Attorney, dated March 4, 2013

 

	SIGNED by:	/s/ Alessandro Cajrati Crivelli	 

Alessandro Cajrati Crivelli, as attorney-in-fact for HUERTAS
GROUP LTD., pursuant to Power of Attorney, dated March 4, 2013      

 

	SIGNED by:	/s/ Alessandro Cajrati Crivelli	 

Alessandro Cajrati Crivelli, as attorney-in-fact for
AREPO FIDUCIARA S.R.L., pursuant to Power of Attorney, dated March 4, 2013

 

	SIGNED by:	/s/ Alessandro Cajrati Crivelli	 

Alessandro Cajrati Crivelli, as attorney-in-fact for TIZIANI
CAPITAL LIMITED, pursuant to Power of Attorney, dated March 4, 2013

 

	SIGNED by:	/s/ Alessandro Cajrati Crivelli	 

Alessandro Cajrati Crivelli, as attorney-in-fact for
OMNIAFIN S.P.A., pursuant to Power of Attorney, dated March 4, 2013

 

	SIGNED by:	/s/ Alessandro Cajrati Crivelli	 

Alessandro Cajrati Crivelli, as attorney-in-fact for SIMON FIDUCIARA
S.P.A., pursuant to Power of Attorney, dated March 4, 2013

 

	SIGNED by:	/s/ Alessandro Cajrati Crivelli	 

Alessandro Cajrati Crivèlli, as attorney-in-fact for
KRUIDO S.A., pursuant to Power of Attorney, dated March 4, 2013

 

	SIGNED by:	/s/ Alessandro Cajrati Crivelli	 

Alessandro Cajrati Crivelli, as attorney-in-fact for UDOLL MANAGEMENT
LIMITED, pursuant to Power of Attorney, dated March 4, 2013

 

	SIGNED by:	/s/ Alessandro Cajrati Crivelli	 

Alessandro Cajrati Crivelli, as attorney-in-fact for ANTONIO
TAZARTES, pursuant to Power of Attorney, dated March 4, 2013

 

    	 

    	 

    

 

	SIGNED by:	/s/ Alessandro Cajrati Crivelli	 

Alessandro Cajrati Crivelli, as attorney-in-fact for MARIA BARTON,
pursuant to Power of Attorney, dated March 4, 2013

 

	SIGNED by:	/s/ Alessandro Cajrati Crivelli	 

Alessandro Carati Crivelli, as attorney-in-fact for MARCO GOBBETTI,
pursuant to Power of Attorney, dated March 4, 2013

 

	SIGNED by:	/s/ Alessandro Cajrati Crivelli	 

Alessandro Cajrati Crivelli, as attorney-in-fact for LUISA CAJRATI
CRIVELLI, pursuant to Power of Attorney, dated March 4, 2013

 

	SIGNED by:	/s/ Alessandro Cajrati Crivelli	 

Alessandro Cajrati Crivelli, as attorney-in-fact for
AMEDEO CLAVARINO, pursuant to Power of Attorney, dated March 4, 2013

 

	SIGNED by:	/s/ Alessandro Cajrati Crivelli	 

Alessandro Cajrati Crivelli, as attorney-in-fact for RICCARDO
CAJRATI CRIVELLI, pursuant to Power of Attorney, dated March 4, 2013

 

	SIGNED by:	/s/ Alessandro Cajrati Crivelli	 

Alessandro Cajrati Crivelli, as attorney-in-fact for GIORGIO
CAJRATI CRIVELLI, pursuant to Power of Attorney, dated March 4, 2013

 

	SIGNED by:	/s/ Alessandro Cajrati Crivelli	 

Alessandro Cajrati Crivelli, as attorney-in-fact for UBERTO
CAJRATI CRIVELLI, pursuant to Power of Attorney, dated March 4, 2013

 

	SIGNED by:	/s/ Alessandro Cajrati Crivelli	 

Alessandro Cajrati Crivelli, as attorney-in-fact for PAOLO CARDANO,
pursuant to Power of Attorney, dated March 4, 2013

 

	SIGNED by:	/s/ Alessandro Cajrati Crivelli	 

Alessandro Cajrati Crivelli, as attorney-in-fact for GIOVANNI
DI VINCENZO, pursuant to Power of Attorney, dated March 4, 2013

  

	SIGNED by:	/s/ Alessandro Cajrati Crivelli	 

Alessandro Cajrati Crivelli, as attorney-in-fact for ANDREA
A. ZAMBON, pursuant to Power of Attorney, dated March 4, 2013

 

	SIGNED by:	/s/ Alessandro Cajrati Crivelli	 

Alessandro Cajrati Crivelli, as attorney-in-fact for ROBERTO
MANGIAVACCHI, pursuant to Power of Attorney, dated March 4, 2013

 

	SIGNED by:	/s/ Alessandro Cajrati Crivelli	 

Alessandro Cajrati Crivelli, as attorney-in-fact for ANTONIO
BELLONI, pursuant to Power of Attorney, dated March 4, 2013      

 

	SIGNED by:	/s/ Alessandro Cajrati Crivelli	 

Alessandro Cajrati Crivelli, as attorney-in-fact for ICS SECURITIES
S.A R.L., Société de Titrisation, pursuant to Power of Attorney, dated March 4, 2013

 

    	 

    	 

    

 

	/s/ Alessandro Cajrati Crivelli	 
	ALESSANDRO CAJRATI CRIVELLI, individually	 

 

	PURCHASER	 
	 	 
	
        THOR
50 VARICK-LLC,

a
Delaware limited liability company
	 
	 	 
	By:	/s/ DSFT Holdings LLC, its
    sole member	 
	 	 	 
	By:	/s/ Morris Missry	 
	 	Name: Morris Missry	 
	 	Title:   Manager  	 

 

    	 

    	 

    

 

	/s/ Alessandro Cajrati Crivelli	 
	ALESSANDRO CAJRATI CRIVELLI, individually	 

 

	PURCHASER	 
	 	 
	
        THOR
        50 VARICK LLC,

        a
        Delaware limited liability company
	 
	By: DSFT Holdings LLC, its sole member	 
	 	 
	By:	/s/ Morris Missry	 
	 	Name: Morris Missry	 
	 	Title: Manager	 

 

    	 

    	 

    

 

Schedule 1

 

SHAREHOLDERS,
SHAREHOLDER LOANS, TRANSFER PRICES

 

	Name of Shareholder	 	Shareholding	 	Shareholder
 Loans in US
 Dollars	 	 	Transfer Price in US
 Dollars	 
	GREENCAGE S.A., Société de Titrisation	 	1,150 shares	 	 	1,980,139.14	 	 	 	3,023,320.97	 
	KENSINGTON SQUARE HOLDING S.A., Société de Titrisation	 	250 shares	 	 	430,465.06	 	 	 	551,850.28	 
	SCLAREA FOUR S.A.	 	200 shares	 	 	344,372.00	 	 	 	441,480.22	 
	HAWKSFORD TRUSTEES JERSEY LTD as Trustee of the Dog Trust	 	250 shares	 	 	430,465.00	 	 	 	551,850.28	 
	HUERTAS GROUP LTD.	 	250 shares	 	 	430,465.00	 	 	 	551,850.28	 
	AREPO FIDUCIARA S.R.L.	 	150 shares	 	 	258,279.00	 	 	 	331,110.17	 
	TIZIANI CAPITAL LIMITED	 	50 shares	 	 	86,093.00	 	 	 	110,370.05	 
	OMNIAFIN S.P.A.	 	300 shares	 	 	516,558.11	 	 	 	662,220.34	 
	SIMON FIDUCIARA S.P.A.	 	200 shares	 	 	344,372.06	 	 	 	441,480.22	 
	KRUIDO S.A.	 	200 shares	 	 	344,372.06	 	 	 	441,480.22	 
	UDOLL MANAGEMENT LIMITED	 	100 shares	 	 	172,158.99	 	 	 	220,740.12	 
	ALESSANDRO CAJRATI CRIVELLI	 	2,549 shares	 	 	4,388,997.51	 	 	 	11,460,587.07	 
	ANTONIO TAZARTES	 	250 shares	 	 	430,465.07	 	 	 	551,850.28	 
	MARIA BARTON	 	100 shares	 	 	172,186.06	 	 	 	220,740.12	 
	MARCO GOBBETTI	 	500 shares	 	 	860,930.14	 	 	 	1,103,700.56	 
	LUISA CAJRATI CRIVELLI	 	300 shares	 	 	516,558.08	 	 	 	662,220.34	 
	AMEDEO CLAVARINO	 	300 shares	 	 	516,558.17	 	 	 	662,220.34	 

 

    	 

    	 

    

 

	RICCARDO CAJRATI CRIVELLI	 	1,300 shares	 	 	2,238,418.37	 	 	 	2,869,621.45	 
	GIORGIO CAJRATI CRIVELLI	 	300 shares	 	 	516,526.08	 	 	 	662,220.33	 
	UBERTO CAJRATI CRIVELLI	 	300 shares	 	 	516,558.08	 	 	 	662,220.33	 
	PAOLO CARDANO	 	134 shares	 	 	230,729.28	 	 	 	295,791.75	 
	GIOVANNI DI VINCENZO	 	266 shares	 	 	458,014.83	 	 	 	587,168.70	 
	ANDREA A. ZAMBON	 	150 shares	 	 	258,279.04	 	 	 	331,110.16	 
	ROBERTO MANGIAVACCHI	 	150 shares	 	 	258,279.04	 	 	 	331,110.16	 
	ANTONIO BELLONI	 	300 shares	 	 	516,558,08	 	 	 	662,220.33	 
	ICS SECURITIES S.A R.L. Société de Titrisation	 	1 share	 	 	1,721.85	 	 	 	1,313,340.97	 
	TOTAL	 	10,000	 	 	17,218,519.12	 	 	 	29,703,876.00	 

 

    	 

    	 

    

 

Schedule
2 

 

CORPORATE
STRUCTURE

 

 

    	 

    	 

    

 

Schedule
3

 

THE
PROPERTY

 

THE
CONDOMINIUM UNIT(S) (hereinafter referred to as the "Unit(s)") in the building (hereinafter referred to as the "Building")
known as 50 Varick Condominium and by the Street Number 34-50 Varick Street a/k/a 6 St. Johns Lane, County of New York, State of
New York, said Units being designated and described as Unit(s) A and A2 in a Declaration dated as of 2/16/10 made by Verizon New
York Inc., pursuant to Article 9-B of the Real Property Law of the State of New York (hereinafter referred to as the "Condominium
Act”) establishing a Plan for condominium ownership of the Building and the Land (hereinafter referred to as the "land")
upon which the building is situate (which land is more particularly described in Exhibit A annexed hereto and by this reference
made a part hereof), which Declaration was recorded in the New York County Register's Office on 3/12/10, as CRFN 2010000086079,
and has been amended by First Amendment to Declaration dated 7/26/11 and recorded 3/6/12 as CRFN 2012000086110 and by Second Amendment
to Declaration dated 6/20/12 and recorded 10/24/12 as CRFN 2012000422214 (which Declaration and Amendments thereto are hereinafter
collectively referred to as the "Declaration"). These Units are also designated as Tax Lot 1301 and 1307 in Block
212 of the County of New York on the Tax Map of the Real Property Assessment Department and on the Floor Plans of the Building,
Certified by Jan L, Gross, Architect, on 3/9/10 and filed with the Real Property Assessment Department on 3/9/10 as Condominium
Plan No. 2153 and also filed in the New York County Register’s Office on 3/12/10 as Condominium Map No. CRFN 2010000086080,
as amended on the Tax Map of the Real Property Assessment Department and on the Floor Plans of the Building, Certified by Jan L.
Gross, Architect, on 2/22/12 and filed with the Real Property Assessment Department on 2/22/12 as Condominium Plan No. 2153-A and
also filed in the New York County Register’s Office on 3/6/12 as Condominium Map No. CRFN 2012000086111, as amended on the
Tax Map of the Real Property Assessment Department and on the Floor Plans of the Building, Certified by Jan L. Gross, Architect,
on 9/19/12 and filed with the Real Property Assessment Department on 9/19/12 as Condominium Plan No. 2153-B and also filed in the
New York County Register’s Office on 10/24/12 as Condominium Map No. CRFN 2012000422215.

 

TOGETHER
with an undivided 50.804855% (Unit A) and an undivided 1.048837% (Unit A2) interest in the Common Elements (as such term is defined
in the Declaration).

 

TOGETHER
with and SUBJECT to the rights, obligations, easements, restrictions and other provisions set forth in the Declaration, Floor plans
and the By-Laws of 50 Varick Condominium, as the same may be amended from time to time (herein after referred to as the "By-Laws"),
all of which shall constitute covenants running with the Land and shall bind any person having at any time any interest
or estate in the Unit, as though recited and stipulated at length herein.

 

The
land on which the building and unit is located is situated in the County of New York and State of New York and is more fully described
in the Declaration of Condominium recorded in the New York County Register’s Office on 3/12/10, as CRFN 2010000086079, as
amended.

 

    	 

    	 

    

  

Schedule 4

 

VARICK STUDIOS INC. & SUBSIDIARY

SCHEDULE OF PROJECTED LIABILITIES AND SPECIFIED
ASSETS

With updated Mezzanine Loan Interest on
April 8, 2012

 

	PROJECTED LIABILITIES	 	Through 6/28/2013	 	 	Post 6/28/2013	 	 	 	 
	 	 	 	 	 	 	 	 	 	 
	Construction Hard and Soft Costs (provided by Gardiner)	 	 	 	 	 	 	 	 	 	 	 	 
	Professional fees (engineers, architects)	 	$	240,416	 	 	$	197,990	 	 	 	 	 
	Total Cost Construction	 	$	11,847,571	 	 	$	5,077,531	 	 	 	 	 
	Filing Fees	 	$	25,973	 	 	$	21,389	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 
	Total Construction Hard and Soft Costs	 	$	12,113,960	 	 	$	5,296,910	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 
	Additional Estimated Liabilities	 	 	 	 	 	 	 	 	 	 		 
	Loans Payable Bank (Mediocradito) + Thor	 	$	18,249,525	 	 	 	 	 	 	 	 	 
	Mediocredito Italiano - Loan Interest	 	$	554,900	 	 	 	 	 	 	 	 	 
	Mediocredito Italiano - Prepayment Penalty	 	$	156,000	 	 	 	 	 	 	 	 	 
	Thor - Mezzanine Interest	 	$	87,778	 	 	 	79/360 days @8%	 
	Due to Varick Sarl (converted into capital) as of 3.31.2013)	 	$	-	 	 	 	 	 	 	 	 	 
	Legal, Audit and other professional fees	 	$	350,000	 	 	 	 	 	 	 	 	 
	Est4te Four Capital LLC, 1st invoice	 	$	262,500	 	 	 	 	 	 	 	 	 
	Est4te Four Capital LLC, 2nd invoice	 	$	259,750	 	 	 	 	 	 	 	 	 
	CG Varick LLC (Colonnade Group)	 	$	500,000	 	 	 	 	 	 	 	 	 
	Other	 	$	250,000	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 
	Total Additional Estimated Liabilities	 	$	20,670,453	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 
	TOTAL PROJECTED LIABILITIES	 	$	32,784,413	 	 	$	5,296,910	 	 	$	38,081,323	 
	 	 	 	Through 6/28/2013	 	 	 	Post 6/28/2013	 	 	 	GRAND TOTAL	 
	PROJECTED SPECIFIED ASSETS	 	 	 	 	 	 	 	 	 	 	 	 
	Cash	 	$	750,000	 	 	 	 	 	 	 	 	 
	Security Deposit	 	$	350,329	 	 	 	Escrow deposit held by Goulston & Storrs 	 
	Other receivable	 	$	152,870	 	 	 	Verizon (construction cost and insurance)	 
	TOTAL PROJECTED SPECIFIED ASSETS	 	$	1,253,199	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 
	GROSS SALES PRICE	 	$	83,750,000	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 
	Less:	 	 	 	 	 	 	 	 	 	 	 	 
	Luxemboug Sarl shareholders’ loans	 	$	(17,218,000	)	 	 	 	 	 	 	 	 
	PROJECTED LIABILITIES (GRAND TOTAL above)	 	$	(38,081,323	)	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 
	Plus:	 	 	 	 	 	 	 	 	 	 	 	 
	PROJECTED SPECIFIED ASSETS (above)	 	$	1,253,199	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 
	PROJECTED NET SALES PRICE (CASH DUE AT CLOSING)	 	$	29,703,876	 	 	 	 	 	 	 	 	 

 

    	 

    	 

    

 

Schedule 5

 

NOTIFICATION OF SHARE TRANSFER

 

Varick Investments S.à r.l.

Attn.: Board of Managers

19-21, boulevard du Prince Henri

L-1724 Luxembourg

 

		Re :	Notification of transfer of shares in the share capital
of Varick Investments S.à r.l. (the Company)

 

Dear Sirs,

 

We hereby notify you that:

 

	 	GREENCAGE SA., Société de Titrisation
	 	19-21 Boulevard du Prince Henri, L-1724 Luxembourg
	 	 
	 	KENSINGTON SQUARE HOLDING S.A., Société de Titrisation
	 	1, Rue Nicolas Simmer, L-2538 Luxembourg
	 	 
	 	SCLAREA FOUR S.A.
	 	1, Boulevard de la Foire, L-l528 Luxembourg
	 	 
	 	HAWKSFORD TRUSTEES JERSEY LTD as Trustee of the Dog Trust
	 	15, Esplanade, JE11RB St Hellier, Jersey
	 	 
	 	HUERTAS GROUP LTD.
	 	Morgan and Morgan Building, P.O. Box 958 Pasea Estate,
	 	Road Town, Tortola BVI
	 	 
	 	AREPO FIDUCIARA S.R.L.
	 	49, Corso Italia, I-20122 Milan, Italy
	 	 
	 	TIZIANI CAPITAL LIMITED
	 	Pasea Estate, PO Box 958 Road Town, Tortola, BVI
	 	 
	 	OMNIAFIN S.P. A.
	 	Via Giuseppe Pozzonen, 5, Milan, Italy
	 	 
	 	SIMON FIDUCIARA S.P.A.
	 	10, Via del Carmine, I-10122 Turin, Italy

 

    	 

    	 

    

 

	 	KRUIDO SA.
	 	50 Avenue de la Praille, 1211 Geneva 26, Switzerland
	 	 
	 	UDOLL MANAGEMENT LIMITED
	 	Vanterpool Plaza. Vickhams Cay 1, P.O. Box 873,
	 	Road Town, Tortola, BVI
	 	 
	 	ANTONIO TAZARTES
	 	61, Corso Sempione, I-20149 Milano, Italy
	 	 
	 	MARIA BARTON
	 	142, Via Tepice, I-10025 Pino Torinese, Italy
	 	 
	 	MARCO GOBBETTI
	 	5, Via Ramazzini, I-20129 Milano
	 	 
	 	LUISA CAJRATI CRIVELLI
	 	1, Via Stampa, I-20123 Milan, Italy
	 	 
	 	AMEDEO CLAVARINO
	 	15, Egerton Gardens, Flat5, GB-SW32BW, London, UK
	 	 
	 	RICCARDO CAJRATI CRIVELLI
	 	50 Via San Marco, 20121 Milano, Italy
	 	 
	 	GIORGIO CAJRATI CRIVELLI
	 	36, Via Stendhal 36,I-20144 Milan, Italy
	 	 
	 	UBERTO CAJRATI CRIVELLI
	 	7, Via Vittor Pisani 7, I-20124, Milan, Italy
	 	 
	 	PAOLO CARDANO
	 	12, Corso di Porta Ticinese, I-20123 Milan, Italy
	 	 
	 	GIOVANNI DI VINCENZO
	 	20, Via Chiappinello, I-65015 Montesilvano, Italy
	 	 
	 	ANDREA A. ZAMBON
	 	54, Corso Venezia, I-20121 Milan, Italy
	 	 
	 	ROBERTO MANG1AVACCHI
	 	16, Via Cappuccio, I-20123 Milan, Italy
	 	 
	 	ANTONIO BELLONI
	 	4, Avenue Raymond Pointcare, F-75000 Paris, France

 

    	 

    	 

    

 

	 	ICS SECURITIES S.A R.L, Société de Titrisation
	 	50, Route d'Esch, L-1470 Luxembourg

 

All being represented by ALESSANDRO CAJRATI
CRIVELLI, resident at 419 Saint Cloud, Los Angeles, CA 9007730 (US), on the basis
of powers of attorney executed under private seal, together with ALESSANDRO CAJRATI CRIVELLI, pre-named, acting in his own capacity,
referred to as the Transferors,

 

	hereby confirm the transfer to	[Add details of Delaware limited liability company]
	 	 
	 	(the Transferee)

 

of the aggregate number of

 

ten thousand (10,000) shares
with nominal value of EUR 1,25 each and representing the entire share capital (the Shares) of the Company

with effective date
on [          , 2013] [Please complete] (the Transfer Date).

 

The Transferors and the Transferee hereby
notify the Company of the transfer in accordance with Article 190 of the Luxembourg Company Law and Article 1690 of the Luxembourg
Civil Code and give full power to any manager of the Company each acting individually, to sign on their behalf all documents, certificates,
declarations and recording in the shareholders’ register of the Company to effect this transfer, to file any notice of transfer
with the Luxembourg Register of Commerce and Companies and to publish such notice in the Luxembourg official gazette.

 

REMAINDER OF THIS PAGE LEFT DELIBERATELY
BLANK

 

    	 

    	 

    

 

SIGNATORIES

 

Signed on [•] please complete], in twenty eight (28) originals,
one (1) original being sent to the Company by the Transferee.

 

	SIGNED by:	)	 
	For and on. behalf of	)	 
	GREENCAGE S.A., Société de Titrisation, acting as Seller	)	 
	 	 	 
	SIGNED by:	)	 
	For and on behalf of	) 	 
	KENSINGTON SQUARE HOLDING S.A., Société de Titrisation, acting as Seller	)	 
	 	 	 
	SIGNED by:	)	 
	For and on behalf of	)	 
	SCLAREA FOUR. S.A., acting as Seller	)	 
	 	 	 
	SIGNED by:	)	 
	For and on behalf of	)	 
	HAWKSFORD TRUSTEES JERSEY LTD as Trustee of the Dog Trust, acting as Seller	)	 
	 	 	 
	SIGNED by:	)	 
	For and on behalf of	)	 
	HUERTAS GROUP LTD., acting as Seller	)	 
	 	 	 
	SIGNED by:	)	 
	For and on behalf of	)	 
	AREPO FIDUCIARA S.R.L., acting as Seller	)	 

 

    	 

    	 

    

 

	SIGNED by:	)	 
	For and on behalf of 	)	 
	T1ZIANI CAPITAL LIMITED, acting as Seller	)	 
	 	 	 
	SIGNED by:	)	 
	For and on behalf of	)	 
	OMNIAFIN S.P.A., acting as Seller	)	 
	 	 	 
	SIGNED by:	)	 
	For and on behalf of	)	 
	SIMON FIDUCIARA S.P.A., acting as Seller	)	 
	 	 	 
	SIGNED by:	)	 
	For and on behalf of	)	 
	KRUIDO S.A., acting as Seller	)	 
	 	 	 
	SIGNED by:	)	 
	For and on behalf of	)	 
	UDOLL MANAGEMENT LIMITED, acting as Seller	)	 
	 	 	 
	SIGNED by:	)	 
	For and on behalf of	)	 
	ALESSANDRO CAJRATI CRIVELLI, acting as Seller	)	 
	 	 	 
	SIGNED by:	) 	 
	For and on behalf of	)	 
	ANTONIO TAZARTES, acting as Seller	)	 

 

    	 

    	 

    

	 	 	 
	SIGNED by:	)	 
	For and on behalf of	)	 
	MARIA BARTON, acting as Seller	)	 
	 	 	 
	SIGNED by;	)	 
	For and on behalf of	)	 
	MARCO GOBBETTI, acting as Seller	)	 
	 	 	 
	SIGNED by:	)	 
	For and on behalf of	)	 
	LUISA CAJRATI CRIVELLI acting as Seller	)	 
	 	 	 
	SIGNED by:	)	 
	For and on behalf of	)	 
	AMEDEO CLAVARINO, acting as Seller	)	 
	 	 	 
	SIGNED by:	)	 
	For and on behalf of	)	 
	RICCARDO CAJRATI CRIVELLI, acting as Seller	)	 
	 	 	 
	SIGNED by:	)	 
	For and on behalf of	)	 
	GIORGIO CAJRATI CRIVELLI, acting as Seller	)	 
	 	 	 
	SIGNED by:	)	 
	For and on behalf of	)	 
	UBERTO CAJRATI CRIVELLI, acting as Seller	)	 

 

    	 

    	 

    

 

	SIGNED by:	)	 
	For and on behalf of	)	 
	PAOLO CARDANO, acting as Seller	)	 
	 	 	 
	SIGNED by:	)	 
	For and on behalf of	)	 
	GIOVANNI DI VINCENZO, acting as Seller	)	 
	 	 	 
	SIGNED by:	)	 
	For and on behalf of	)	 
	ANDREA A. ZAMBON, acting as Seller	)	 
	 	 	 
	SIGNED by:	)	 
	For and on behalf of	)	 
	ROBERTO MANGIAVACCHI, acting as Seller	)	 
	 	 	 
	SIGNED by:	)	 
	For and on behalf of	)	 
	ANTONIO BELLONI, acting as Seller	)	 
	 	 	 
	SIGNED by:	)	 
	For and on behalf of	)	 
	ICS SECURITIES S.A R.L., Société de Titrisation, acting as Seller	)	 
	 	 	 
	SIGNED by:	)	 
	For and on behalf of	)	 
	[TBC], acting as Purchaser	)	 

 

    	 

    	 

    

 

The Transferee

 

 

	By:	 
	Title:	 

 

The Company, in accordance with article 190 of the Luxembourg
Company Law, accepts and acknowledges the transfer of the Shares with effect as of the Transfer Date from the Transferors to the
Transferee and acknowledges the power given to it and undertakes to record or cause to be recorded, with effect as of the Transfer
Date, in its shareholders' register the ownership rights of the Transferee in respect of the Shares, to file any notice of transfer
with the Luxembourg Register of Commerce and Companies and to publish such notice in the Luxembourg official gazette.

 

The Company

 

 

	By:	 
	Title:	 

 

    	 

    	 

    

 

Schedule 6

 

ESTOPPEL CERTIFICATE FORM

 

TENANT ESTOPPEL

 

[Tenant Letterhead]

 

                           ,2013

[                         ]

	 	 
	 	 
	 	 

 

		Re:	Agreement of Lease dated December
                                                               19, 2011 (as the same may have been modified, amended and/or assigned,
                                                               the "Lease") by and between 50 Varick LLC ("Landlord")
                                                               and Spring Studios New York, LLC (“Tenant”).
                                                               demising Units A and A2 (the "Premises") at the
                                                               building commonly known as 50 Varick Street, New York, New York
                                                               (the "Property")

 

Gentlemen:

 

The following statements
are made with the knowledge that you and your successors and assigns, successor owners of the Property and present and future lenders
secured by mortgages encumbering the Property may rely on them.

 

All capitalized terms
used herein and not otherwise defined shall have their respective meanings ascribed to them in the Lease.

 

The undersigned, as
tenant under the Lease, hereby certifies to you as follows:

 

1.          The
Lease is in full force and effect, has not been modified or assigned by the undersigned and is the only lease or other agreement
between the undersigned and the Landlord relating to the Premises except as follows: that certain First Amendment to Lease dated
March 19, 2013. Attached hereto is a true and complete copy of the Lease.

 

2.          The
Commencement Date has not yet occurred and Tenant has not yet accepted possession of the Premises.

 

3.          The
Rent Commencement Date, the Commencement Date and Expiration Date of the term of the Lease are as set forth in the Lease.

 

4.          The
Rent Commencement Date has not occurred and Tenant has not commenced the payment of fixed annual base rent or any additional rent.

 

a.           The
fixed annual base rent payable under the Lease commencing on the Rent Commencement Date shall be $                  ,
payable monthly, at the rate of $                
per month, on the first day of each calendar month.

 

    	 

    	 

    

 

b.           There
are no (i) unexpired rental concessions or abatements under the Lease, or (ii) allowances, reimbursements or other obligations
of Landlord for the payment of monies to or for the benefit of Tenant, except for the Rent Concession and Landlord’s Contribution,
each of which remain payable in full by Landlord.

 

c.           The
amount of the security deposit delivered under the Lease is $2,250,000.00 and said security deposit is in the form of a Letter
of Credit. The Letter of Credit is in full force and effect.

 

5.          There
is no additional rent or other charges payable under the Lease on or before the date hereof which have not been paid in full. No
rent or other charges under the Lease have been paid in advance.

 

6.          Neither
Tenant, nor to the best of Tenant's knowledge, Landlord, is in default in the performance of any covenant, agreement or condition
contained in the Lease, nor, to the best of Tenant's knowledge is there now any fact or condition which, with the passage of time
or the giving of notice or both, would constitute a default by either party under the Lease. Tenant has no defenses, counterclaims,
liens or claims of offset or credit under the Lease or against rents, or any other claims against Landlord.

 

7.          The
Tenant has no actions, claims, proceedings or suits pending or threatened against the Landlord or relating to the Premises.

 

8.          Tenant
has not assigned, transferred or otherwise encumbered its interest under the Lease, or subleased or licensed any portion of the
Premises, except as follows:                                                 .

 

9.          To
Tenant’s knowledge and subject to punchlist items, all work required to be performed by Landlord pursuant to the Lease has
been performed, except for the items of Landlord’s Work set forth on the attached Schedule A. The parties have not
entered into an agreement with respect to whether any Tenant Delays currently exist with respect to Landlord’s Work.

 

10.         Tenant
has not given notice to Landlord to exercise any rights to cancel, surrender or terminate the Lease or of its intent to vacate
the Premises.

 

11.         The
Lease was duly authorized and entered into by the Tenant and constitutes the valid and binding obligation of the Tenant enforceable
in accordance with its terms.

 

12.         The
Lease is guaranteed by Guarantor pursuant to the Guaranty. The Guaranty remains in full force and effect.

 

13.         Tenant
has not received any written notice of a prior sale, transfer, assignment, hypothecation or pledge of the Lease or of the rents
secured therein.

 

This letter shall be binding upon Tenant
and its legal representatives, successors and assigns.

 

	 	[TENANT]
	 	 
	 	By:	 
	 	 	Name:
	 	 	Its:

 

    	 

    	 

    

 

 

 

Schedule
7

 

CONDOMINIUM
ESTOPPEL CERTIFICATE FORM

 

BOARD
OF MANAGERS OF 50 VARICK STREET CONDOMINIUM

50
Varick Street

New
York, New York 10013

 

                        ,
2013

 

		To:	                         ,
                                                           having an address at                          ,
                                                           New York, New York ________, and its successors and/or assigns

 

		Re:	50 Varick Street Condominium (the “Condominium”)

 

Gentlemen:

 

In
connection with that certain proposed sale (the “Sale”) of certain indirect ownership interests in 50 Varick
LLC (“Unit Owner”), the owner of Units A and A2 at the Condominium, as more particularly described on Exhibit
A hereto (the “Units”), to                          
(“Purchaser”), please be advised that:

 

1.          All
initially capitalized terms used herein without definition and which are defined in the By-Laws (the “By-Laws”) or
Declaration (as defined below) of the Condominium shall have the meaning set forth for such term in the By-Laws or the Declaration,
as the case may be.

 

2.          The
Common Charges payable for the calendar year 2013 are
$                         and
the Unit Expenses payable for the calendar year 2013 are
$                         .

 

3.          All
Common Charges, Unit Expenses or other assessments or charges, if any, assessed against the Units have been paid
through                         , 2013.
No special assessments are currently assessed or anticipated within the next twelve (12) months. There are no liens
being assessed by the Board with respect to the Units pursuant to the Declaration or the By-Laws and the Board has not given
or received any notices or made or received any demands under the Declaration or the By-Laws with respect to the Units which
have not been satisfied.

 

4.          The
Units are currently separately assessed for real estate tax purposes and real estate taxes are not included in Common Charges.

 

5.          The
Unit Owner has contributed the amount of $346,850.00 to the Reserve Fund.

 

6.          Unit
Owner is not in default of any of its obligations under the Declaration, the By-Laws or the Rules and Regulations and no event
has occurred which with the giving of notice by the Board or the passage of time, or both, would become a default thereunder.

 

7.          As
of the date hereof, the Unit A Owner has completed the Unit A Renovations and the Unit A2 Separation Work, except for                                                                            .

 

    	 

    	 

    

 

8.          As
of the date hereof, the Verizon Units Owner has completed the Verizon Separation Work.

 

9.         The
person signing this letter hereby certifies that he or she is duly authorized to sign, acknowledge and deliver this letter on behalf
of the Board, without further act or authorization by the Board.

 

10.      The
Board is currently comprised of the following individuals:

 

	NAME	 	APPOINTED BY
	 	 	 
	Gregory Altshuler	 	Unit A Owner
	 	 	 
	Stefano Farsura	 	Unit A Owner
	 	 	 
	James Tousignant	 	Verizon Units Owner

 

11.         The
“Declaration” means, collectively, the Declaration of 50 Varick Street Condominium, dated February 16, 2010, and recorded
in the Office of the Register of New York County on March 12, 2010 as CRFN 2010000086079, as amended by First Amendment to the
Declaration dated as of July 26, 2011, and recorded in the Office of the Register of New York County on March 6, 2012 as CRFN
2012000086110, and by Second Amendment to the Declaration dated as of June 20, 2012, and recorded in the Office of the Register
of New York County on October 24, 2012 as CRFN 2012000422214 and the “By-Laws” means the By-Laws attached hereto as
Exhibit B. The Declaration and the By-Laws are in full force and effect and have not been modified, altered, or amended.

 

This
letter shall be binding upon and inure to the benefit of Purchaser and its successors and assigns, and may also be relied upon
by any lender of or investor in Purchaser.

 

	 	Very truly yours,
	 	
	 	THE BOARD OF MANAGERS OF
	 	50 VARICK STREET CONDOMINIUM
	 	 	 
	 	By:	 
	 	 	Name:
	 	 	Title:

 

    	 

    	 

    

 

Schedule
8

 

LITIGATION

 

		1.	                    Yuriy Antonyshyn and Natalia Mytsyk vs. Tishman Construction Corporation and 50 Varick LLC, Supreme
Court of the State of New York (Index No. 4094/12)

 

		2.	                    In the Matter of the Application of Raesky LLC vs. Robert LiMandri, Commissioner of the Department
of Buildings, 50 Varick LLC, Foundations Interior Design Corp. and Foundations Group, Inc.,
Supreme Court of the State of New York (Index No. 100490/2013)

 

		3.	                    H.H. Benfield Electric Supply Company, Inc, vs. Fidelity and Deposit Company of Maryland, Verizon
New York Inc., 50 Varick LLC, 50 Varick Street Condominium, et al., Supreme Court of the State of New York (Index No. 151757/2012)

 

		4.	                    Richter+Ratner Contracting Corp. vs. Estate4Capital Group, 50 Varick LLC and Colonnade Group LLC,
Supreme Court of the State of New York (Index No. 112469/2011)

 

		5.	                    Notice of mechanics lien filed by Cross-County Contracting Inc. in the amount of $45,800, dated
November 16, 2011

 

		6.	                    Potential litigation by Verizon over leakage from the roof during construction.

 

    	 

    	 

    

 

Schedule
9

 

AFFILIATE
DEBTS

 

The
Shareholder Loans

 

    	 

    	 

    

 

Schedule
10

 

Note:
this is a fist of all major vendors, there may be additional vendors 

	Vendor Name	 	Tax ID	 	Note
	FOUNDATIONS GROUP INC.	 	20-4370022	 	Construction Contract
	INTEGRATED COMPANIES INC	 	22-3307175	 	Construction Contract
	METROPOLIS GROUP INC.	 	N	 	Construction Contract
	MORRIS ADJMI ARCHITECTS, PC	 	26-3942187	 	Construction Contract
	Mottola Rini Engineers P.C.	 	13-3697014	 	Construction Contract
	RS Lighting Design	 	26-4135603	 	Construction Contract
	Shon Milsom & Wilke, LLC	 	26-3758621	 	Construction Contract
	DESIMONE CONSULTING ENGINEERS	 	20-5944553	 	Construction Contract
	GARDINER & THEOBALD INC.	 	N	 	Construction Contract
	JENKINS & HUNTINGTON, INC.	 	N	 	Construction Contract
	QUALITY CONSULTANTS	 	N	 	Construction Contract
	CG VARICK LLC	 	27-2904633	 	Construction Contract
	 	 	 	 	 
	MAJOR ELEVATOR CORP.	 	N	 	Building Service
	SELECT SAFETY CONSULTING SERVICES INC.	 	N	 	Building Service
	 	 	 	 	 
	MARCUS & POLLACK LLP	 	N	 	ICAP Attorney

  

    	 

    	 

    

 

Schedule 11

 

	SCHEDULE OF VALUES

 

	AIA Document G703	 	 
	 	 	 
	Continuation Sheet - Hard Construction Costs	 	 
	AIA Document G702, Application and Certification for Payment 	Application No.: 	 
	containing Contractor’s signed certification is attached.	Application Date:	06/04/12
	 	Period To:	05/20/12

 

	 	 	 	 	 	 	 	 	Work
    Completed	 	 	 	 	 	 	 	 	 	 
	Description
    of Work	 	Control
    Estimate	 	Change
    Orders	 	Scheduled
    value	 	Previous
    Work	 	This
    Application	 	%
    paid	 	Completed
    & stored	 	Balance
    to Finish	 	Retainer 	 	Ref.
    Release
	Division 1 - General
    Conditions	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Office
    & Eng. Supplies	 	$2,500.00	 	 	 	$2,500.00	 	 	 	 	 	 	 	 	 	2,500.00	 	NA	 	 
	Office
    supplies, Maintenance & Janitorial	 	$4,000.00	 	 	 	$4,000.00	 	 	 	 	 	 	 	 	 	4,000.00	 	NA	 	 
	Field Office
    Equipment/Computer	 	$2,000.00	 	 	 	$2,000.00	 	 	 	 	 	 	 	 	 	2,000.00	 	NA	 	 
	Permits/fees/renewals	 	$45,500.00	 	 	 	$45,500.00	 	 	 	 	 	 	 	 	 	45,500.00	 	NA	 	 
	Blue printing
    and plotting 	 	$14,500.00	 	 	 	$14,500.00	 	 	 	 	 	 	 	 	 	14,500.00	 	NA	 	 
	Surveys	 	$15,000.00	 	 	 	$15,000.00	 	 	 	 	 	 	 	 	 	15,000.00	 	NA	 	 
	Asbestos
    survey and monitoring	 	By Owner	 	 	 	$0.00	 	 	 	 	 	 	 	 	 	0.00	 	NA	 	 
	Controlled
    inspections	 	By Owner	 	 	 	$0.00	 	 	 	 	 	 	 	 	 	0.00	 	NA	 	 
	Project
    Photos	 	$1,500.00	 	 	 	$1,500.00	 	 	 	 	 	 	 	 	 	1,500.00	 	NA	 	 
	Telephone/
    Fax	 	$9,000.00	 	 	 	$9,000.00	 	 	 	 	 	 	 	 	 	9,000.00	 	NA	 	 
	Engineering	 	By Owner	 	 	 	$25,291.06	 	 	 	 	 	 	 	 	 	25,291.06	 	NA	 	 
	Change Order 1 - Marin Engineering
    - Shoring design	 	 	 	$7,500.00	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Change Order 2 - Howard Shapiro
    & Associates - TA approval	 	 	 	$2,500.00	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Change Order 3 -Quality Consultants
    - Cores	 	 	 	$4,020.00	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Change Order 4 -Quality Consultants
    - Cores	 	 	 	$2,450.00	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Change Order 5 - Marin Engineering
    - EMR	 	 	 	$5,000.00	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Change Order 6 - Marin Engineering
    - Inspections (app # 5)	 	 	 	$3,821.06	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Postage/Express
    Mail	 	$2,500.00	 	 	 	$2,500.00	 	 	 	 	 	 	 	 	 	2,500.00	 	NA	 	 
	Signs	 	$5,000.00	 	 	 	$5,000.00	 	 	 	 	 	 	 	 	 	5,000.00	 	NA	 	 
	Fire Extinguishers	 	$2,500.00	 	 	 	$2,500.00	 	 	 	 	 	 	 	 	 	2,500.00	 	NA	 	 
	24-hrs
    Site Security Personnel / Fire Watch	 	$90,000.00	 	 	 	$90,000.00	 	 	 	 	 	 	 	 	 	90,000.00	 	NA	 	 
	Material
    Handling and trucking	 	$15,000.00	 	 	 	$15,000.00	 	 	 	 	 	 	 	 	 	15,000.00	 	NA	 	 
	Crew Sheds	 	$10,000.00	 	 	 	$10,000.00	 	 	 	 	 	 	 	 	 	10,000.00	 	NA	 	 
	Storage
    Sheds	 	$10,000.00	 	 	 	$10,000.00	 	 	 	 	 	 	 	 	 	10,000.00	 	NA	 	 
	Sanitary
    Facilities	 	$22,000.00	 	 	 	$22,000.00	 	 	 	 	 	 	 	 	 	22,000.00	 	NA	 	 
	Utilities
    bills	 	$24,000.00	 	 	 	$24,000.00	 	 	 	 	 	 	 	 	 	24,000.00	 	NA	 	 
	Temporary
    heating	 	$0.00	 	 	 	$0.00	 	 	 	 	 	 	 	 	 	0.00	 	NA	 	 
	OSHA Related	 	$25,000.00	 	 	 	$25,000.00	 	 	 	 	 	 	 	 	 	25,000.00	 	NA	 	 
	Tools and
    Misc equipment	 	$35,000.00	 	 	 	$35,000.00	 	 	 	 	 	 	 	 	 	35,000.00	 	NA	 	 
	Miscellaneous	 	$140,000.00	 	 	 	$140,000.00	 	 	 	 	 	 	 	 	 	140,000.00	 	NA	 	 
	Road barriers	 	$15,500	 	 	 	$15,500.00	 	 	 	 	 	 	 	 	 	15,500.00	 	NA	 	 
	Fencing	 	$7,600	 	 	 	$7,600.00	 	 	 	 	 	 	 	 	 	7,600.00	 	NA	 	 
	Dumpsters
    and carring	 	$145,000.00	 	 	 	$145,000.00	 	 	 	 	 	 	 	 	 	145,000.00	 	NA	 	 
	Cleaning
    and protection laborers	 	$251,000.00	 	 	 	$251,000.00	 	 	 	 	 	 	 	 	 	251,000.00	 	NA	 	 
	Site Safety
    supervision allowance (to be determined - not included)	 	$0.00	 	 	 	$0.00	 	 	 	 	 	 	 	 	 	0.00	 	NA	 	 
	Full Time
    Project Manager	 	$256,000.00	 	 	 	$256,000.00	 	 	 	 	 	 	 	 	 	256,000.00	 	NA	 	 
	Full Time
    Site Superintendent	 	$178,500.00	 	 	 	$178,500.00	 	 	 	 	 	 	 	 	 	178,500.00	 	NA	 	 
	Full Time
    Site Assistant	 	$161,040.00	 	 	 	$161,040.00	 	 	 	 	 	 	 	 	 	161,040.00	 	NA	 	 
	Division 2 - Site Work	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	BRIDGE
    & SCAFFOLDING	 	 	 	 	 	$174,964.00	 	 	 	 	 	 	 	 	 	174,964.00	 	$0.00	 	 
	Sidewalk
    Bridge - heavy duty - includes first 3 months rental	 	$29,500	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Pipe
    Scaffold	 	$72,500	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Pipe
    Scaffold rental	 	$51,160	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Roof
    Protection	 	$21,804	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Flag men
    / Elevator Operators	 	$85,000	 	 	 	$85,000.00	 	 	 	 	 	 	 	 	 	85,000.00	 	$0.00	 	 
	Rigging
    as needed	 	$40,000	 	 	 	$40,000.00	 	 	 	 	 	 	 	 	 	40,000.00	 	$0.00	 	 
	ASBESTOS
    ABATEMENT	 	$824,938	 	 	 	$697,369.00	 	 	 	 	 	 	 	 	 	 697,369.00	 	Complete	 	 
	Change Order
    7 - Asbestos Abatement Contract (PAL Environmental Corp.)	 	 	 	($159,819.00)	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Change Order
    8 - Abate additional roofing system (PAL Environmental Corp.)	 	 	 	$32,250.00	 	 	 	 	 	 	 	 	 	 	 	 	 		 	 
	Change Order
    9 - roofing for Asbestos removal (Gozzer Corp.)	 	 	 	$14,700.00	 	$14,700.00	 	 	 	 	 	 	 	 	 	14,700.00	 	Complete	 	 
	INTERIOR DEMOLITION
    (Nuway Demolition Contract)	 	$175,000	 	 	 	$389,613.00	 	 	 	 	 	 	 	 	 	389,613.00	 	Complete	 	 
	Change Order
    10 - Abatement on 6th and 7th floor perimeter walls	 	 	 	$124,000.00	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 

 

 

    	1 of 4

    	 

    

 

	SCHEDULE OF VALUES

 

	AIA Document G703	 	 
	 	 	 
	Continuation Sheet - Hard Construction Costs	 	 
	AIA Document G702, Application and Certification for Payment 	Application No.: 	 
	containing Contractor’s signed certification is attached.	Application Date:	06/04/12
	 	Period To:	05/20/12

 

	 	 	 	 	 	 	 	 	Work
    Completed	 	 	 	 	 	 	 	 	 	 
	Description
    of Work	 	Control
    Estimate	 	Change
    Orders	 	Scheduled
    value	 	Previous
    Work	 	This
    Application	 	%
    paid	 	Completed
    & stored	 	Balance
    in Finish	 	Retainer	 	Ref.
    Release
	Change Order 11 - Abatement
    of elbows in 5th floor restrooms	 	 	 	$11,000.00	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Change Order 12 - Abatement of
    elevator plenum	 	 	 	$36,000.00	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Change Order 13 - Credit for Cellar
    work not performed	 	 	 	($24,500.00)	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Change Order 14 - Add for elevator
    bank walls on Floors 5, 6, 7	 	 	 	$7,000.00	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Change Order 15 - Probes to columns
    and beams on Floors 5, 6, 7	 	 	 	$3,360.00	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Change Order 16 - Demolition of
    7th Floor Mezzanine	 	 	 	$16,260.00	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Change Order 17 - Stripping of
    Columns on Floors 5, 6, 7	 	 	 	$8,220.00	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Change Order 18 - Demo of elevator
    core walls on 5, 6, 7	 	 	 	$23,600.00	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Change Order 19 - additional probes
    & Stripping of Columns on Floors 5, 6, 7	 	 	 	$9,673.00	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	STRUCTURAL
    DEMOLITION (Signature Demolition)	 	$615,000	 	 	 	$615,000.00	 	 	 	 	 	 	 	 	 	615,000.00	 	$0.00	 	 
	DEMOLITION
    (Misc.)	 	$99,710	 	 	 	$99,709.61	 	 	 	 	 	 	 	 	 	99,709.61	 	$0.00	 	 
	SHORING	 	$99,500	 	 	 	$99,500.00	 	 	 	 	 	 	 	 	 	99,500.00	 	$0.00	 	 
	PROTECTION	 	 	 	 	 	$82,000.00	 	 	 	 	 	 	 	 	 	82,000.00	 	Complete	 	 
	Interior/exterior
    walls	 	$82,000	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	MISC. FALL
    PROTECTION	 	 	 	 	 	$75,000.00	 	 	 	 	 	 	 	 	 	75,000.00	 	$0.00	 	 
	Guardrails
    around openings and any elevation greater than 3'-6"	 	$25,000	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Rooftop
    protection throughout	 	$25,000	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Slab penetrations
    sealed by plywood.	 	$25,000	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	MISC. EXISTING
    CONDITIONS PROTECTION	 	 	 	 	 	$40,000.00	 	 	 	 	 	 	 	 	 	40,000.00	 	$0.00	 	 
	Protection
    of rooftop equipment	 	$20,000	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Protect
    public area, elevators	 	$20,000	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	TEMPORARY
    WATERPROOFING (ON 7th FLOOR WITH DRAINAGE)	 	$142,500	 	 	 	$142,500.00	 	 	 	 	 	 	 	 	 	142,500.00	 	Complete	 	 
	SITE IMPROVEMENTS
    (ROOF FINISHES)	 	$156,166	 	 	 	$156,166.00	 	 	 	 	 	 	 	 	 	156,166.00	 	$0.00	 	 
	ROOF PAVERS	 	$174,184	 	 	 	$174,184.00	 	 	 	 	 	 	 	 	 	174,184.00	 	$0.00	 	 
	LANDSCAPING	 	$100,725	 	 	 	$100,725.00	 	 	 	 	 	 	 	 	 	100,725.00	 	$0.00	 	 
	Division 3 - Concrete	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	CONCRETE	 	$698,925	 	 	 	$698,925.00	 	 	 	 	 	 	 	 	 	698,925.00	 	$0.00	 	 
	Division 4 - Masonry	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	MASONRY WALLS	 	$290,408	 	 	 	$290,408.00	 	 	 	 	 	 	 	 	 	290,408.00	 	$0.00	 	 
	Division 5 - Metals	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	STRUCTURAL
    STEEL (FJM Steel Contract)	 	$1,500,000	 	 	 	$2,004,788.43	 	 	 	 	 	 	 	 	 	2,004,788.43	 	$0.00	 	 
	Change Order 24 - FJM change #1	 	 	 	$139,823.80	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Change Order 25 - FJM change #2	 	 	 	$80,500.63	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Change Order 26 - FJM change #3	 	 	 	$204,464.00	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Change Order 27 - FJM change #4	 	 	 	$80,000.00	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	MISC. ADDITIONAL
    STRUCTURAL STEEL	 	$110,520	 	 	 	$110,519.57	 	 	 	 	 	 	 	 	 	110,519.57	 	$0.00	 	 
	METAL FABRICATIONS	 	$111,911	 	 	 	$111,911.00	 	 	 	 	 	 	 	 	 	111,911.00	 	$0.00	 	 
	ORNAMENTAL
    METAL	 	$395,550	 	 	 	$395,550.00	 	 	 	 	 	 	 	 	 	395,550.00	 	$0,00	 	 
	STEEL CLADDING	 	$268,322	 	 	 	$268,322.00	 	 	 	 	 	 	 	 	 	268,322.00	 	$0.00	 	 
	Division 6 - Wood, Plastics
    and Composites	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	ROUGH CARPENTRY	 	$0	 	 	 	$0.00	 	 	 	 	 	 	 	 	 	0.00	 	$0.00	 	 
	ARCHITECTURAL
    WOODWORK	 	$464,386	 	 	 	$464,386.00	 	 	 	 	 	 	 	 	 	464,386.00	 	$0.00	 	 
	Division 7 - Thermal and Moisture
    Protection	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	FIRESTOPPING/FIREPROOFING	 	$94,210	 	 	 	$94,210.00	 	 	 	 	 	 	 	 	 	94,210.00	 	$0.00	 	 
	EXTERIOR METAL
    PANELS	 	$228,500	 	 	 	$228,500.00	 	 	 	 	 	 	 	 	 	228,500.00	 	$0.00	 	 
	MEMBRANE ROOFING/FLASHING	 	$595,000	 	 	 	$595,000.00	 	 	 	 	 	 	 	 	 	595,000.00	 	$0.00	 	 
	SKYLIGHTS	 	$71,292	 	 	 	$71,292.00	 	 	 	 	 	 	 	 	 	71,292.00	 	$0.00	 	 
	SHEET METAL
    FLASHING	 	$65,600	 	 	 	$65,600.00	 	 	 	 	 	 	 	 	 	65,600.00	 	$0.00	 	 
	JOINT SEALANTS	 	$0	 	 	 	$0.00	 	 	 	 	 	 	 	 	 	0.00	 	$0.00	 	 

 

    	2 of 4

    	 

    

 

	SCHEDULE OF VALUES

 

	AIA Document G703	 	 
	 	 	 
	Continuation Sheet - Hard Construction Costs	 	 
	AIA Document G702, Application and Certification for Payment 	Application No.: 	 
	containing Contractor’s signed certification is attached.	Application Date:	06/04/12
	 	Period To:	05/20/12

 

	 	 	 	 	 	 	 	 	Work
    Completed	 	 	 	 	 	 	 	 	 	 
	Description
    of Work	 	Control
    Estimate	 	Change
    Orders	 	Scheduled
    value	 	Previous
    Work	 	This
    Application	 	%
    paid	 	Completed
    & stored	 	Balance
    to Finish	 	Retainer	 	Ref.
    Release
	Division 8 - Openings	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	HM &
    WOOD     DOORS & FRAMES	 	$298,300	 	 	 	$298,300.00	 	 	 	 	 	 	 	 	 	298,300.00	 	$0.00	 	 
	FINISH HARDWARE
    (allowance)	 	$138,800	 	 	 	$133,800.00	 	 	 	 	 	 	 	 	 	138,800.00	 	$0.00	 	 
	SPECIAL DOOR/OVERHEAD
    DOORS	 	$73,700	 	 	 	$73,700.00	 	 	 	 	 	 	 	 	 	73,700.00	 	$0.00	 	 
	INTERIOR GLASS	 	$338,350	 	 	 	$338,350.00	 	 	 	 	 	 	 	 	 	338,350.00	 	$0.00	 	 
	ENTRANCES/STOREFRONTS/INTERIOR
    GLASS	 	$169,000	 	 	 	$169,000,00	 	 	 	 	 	 	 	 	 	169,000.00	 	$0.00	 	 
	CURTAIN WALL/WINDOW
    WALL/SKYLIGHT	 	$1,207,470	 	 	 	$1,207,470.00	 	 	 	 	 	 	 	 	 	1,207,470.00	 	$0.00	 	 
	Division 9 - Finishes	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	STUCCO	 	$0	 	 	 	$0.00	 	 	 	 	 	 	 	 	 	0.00	 	$0.00	 	 
	STUDIO CYCLORAMA	 	$285,000	 	 	 	$285,000.00	 	 	 	 	 	 	 	 	 	285,000.00	 	$0.00	 	 
	SOUND BOARD	 	$57,600	 	 	 	$57,600.00	 	 	 	 	 	 	 	 	 	57,600.00	 	$0.00	 	 
	GYPSUM BOARD
    ASSEMBLIES/DRYWALL	 	$1,635,075	 	 	 	$1,635,075.00	 	 	 	 	 	 	 	 	 	1,635,075.00	 	$0.00	 	 
	TILES &
    STONES	 	$345,625	 	 	 	$345,625,00	 	 	 	 	 	 	 	 	 	345,625.00	 	$0.00	 	 
	WOOD FLOORING	 	$263,627	 	 	 	$263,627.00	 	 	 	 	 	 	 	 	 	263,627.00	 	$0.00	 	 
	RESILIENT
    FLOORING	 	$36,741	 	 	 	$36,741.00	 	 	 	 	 	 	 	 	 	36,741.00	 	$0.00	 	 
	RESIN FLOORING	 	$132,100	 	 	 	$132,100.00	 	 	 	 	 	 	 	 	 	132,100.00	 	$0.00	 	 
	CONCRETE FLOORING	 	$521,459	 	 	 	$521,459.00	 	 	 	 	 	 	 	 	 	521,459.00	 	$0.00	 	 
	PAINTING	 	$393,000	 	 	 	$393,000.00	 	 	 	 	 	 	 	 	 	393,000.00	 	$0.00	 	 
	CARPET	 	$10,528	 	 	 	$10,528.00	 	 	 	 	 	 	 	 	 	10,528.00	 	$0.00	 	 
	TENANT FITOUT	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	2nd
    Floor Alterations	 	 $100,000	 	 	 	$100,000.00	 	 	 	 	 	 	 	 	 	100,000.00	 	$0.00	 	
	2ND
    FLOOR office fit out allowance	 	 $127,500	 	 	 	$127,500.00	 	 	 	 	 	 	 	 	 	127,500.00	 	$0.00	 	 
	5TH FLOOR
    EAST FIT OUT ALLOWANCE	 	$408,000	 	 	 	$408,000.00	 	 	 	 	 	 	 	 	 	408,000.00	 	$0.00	 	 
	6TH FLOOR
    EAST FIT OUT ALLOWANCE	 	$127,500	 	 	 	$127,500.00	 	 	 	 	 	 	 	 	 	127,500.00	 	$0.00	 	 
	Division 10 - Specialties	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	TOILET COMPARTMENTS	 	$53,000	 	 	 	$53,000.00	 	 	 	 	 	 	 	 	 	53,000.00	 	$0.00	 	 
	LOCKERS	 	$32,925	 	 	 	$32,925.00	 	 	 	 	 	 	 	 	 	32,925.00	 	$0.00	 	 
	SIGNAGE (Code
    required signage)	 	$0	 	 	 	$0.00	 	 	 	 	 	 	 	 	 	0.00	 	$0.00	 	 
	FIRE PROTECTION
    SPECIALTIES	 	$20,800	 	 	 	$20,800.00	 	 	 	 	 	 	 	 	 	20,800.00	 	$0.00	 	 
	OPERABLE PARTITIONS	 	$207,644	 	 	 	$207,644.00	 	 	 	 	 	 	 	 	 	207,644.00	 	$0.00	 	 
	ACOUSTIC PANELS	 	$0	 	 	 	$0.00	 	 	 	 	 	 	 	 	 	0.00	 	$0.00	 	 
	TOILET AND
    BATH ACCESSORIES	 	$68,160	 	 	 	$68,160.00	 	 	 	 	 	 	 	 	 	68,160.00	 	$0.00	 	 
	GUEST ROOM
    MIRRORS	 	$24,135	 	 	 	$24,135.00	 	 	 	 	 	 	 	 	 	24,135.00	 	$0.00	 	 
	Division 11 - Equipment	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	SPRAY BOOTH	 	$16,000	 	 	 	$16,000.00	 	 	 	 	 	 	 	 	 	16,000.00	 	$0.00	 	 
	Division 12 - Furnishings	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Division 13 - Special Construction	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Division 14 - Conveying System	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	ELEVATOR	 	$969,600	 	 	 	$969,600.00	 	 	 	 	 	 	 	 	 	969,600.00	 	$0.00	 	 
	Division 15 - Fire Protection	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	SPRINKLER	 	$464,850	 	 	 	$464,850.00	 	 	 	 	 	 	 	 	 	464,850.00	 	$0.00	 	 
	Division 15 - Plumbing	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Change Order 20 - Temporary Plumbing
    for Bathrooms & temp roof	 	 	 	$30,000.00	 	$81,683.45	 	 	 	 	 	 	 	 	 	81,583.45	 	$0.00	 	 
	Change Order 21 -Plumbing Demo
    and piping disconnections	 	 	 	$51,683.45	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	PLUMBING	 	$543,500	 	 	 	$543,500.00	 	 	 	 	 	 	 	 	 	543,500.00	 	$0.00	 	 
	PLUMBING FIXTURES	 	$286,175	 	 	 	$286,175.00	 	 	 	 	 	 	 	 	 	286,175.00	 	$0.00	 	 
	Division 15 - HVAC	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Change Order 22 -HVAC Demo and
    HVAC disconnections	 	 	 	$39,740.43	 	$39,740.43	 	 	 	 	 	 	 	 	 	39,740.43	 	Complete	 	 
	HVAC	 	$2,589,760	 	 	 	$2,589,759.57	 	 	 	 	 	 	 	 	 	2,589,759.57	 	$0.00	 	 

 

    	3 of 4

    	 

    

 

	SCHEDULE OF VALUES

 

	AIA Document G703	 	 
	 	 	 
	Continuation Sheet - Hard Construction Costs	 	 
	AIA Document G702, Application and Certification for Payment 	Application No.: 	 
	containing Contractor’s signed certification is attached.	Application Date:	06/04/12
	 	Period To:	05/20/12

 

	 	 	 	 	 	 	 	 	Work
    Completed	 	 	 	 	 	 	 	 	 	 
	Description
    of Work	 	Control
    Estimate	 	Change
    Orders	 	Scheduled
    value	 	Previous
    Work	 	This
    Application	 	%
    paid	 	Completed
    & stored	 	Balance
    to Finish	 	Retainer	 	Ref.
    Release
	Division 16 - Electrical	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Change Order 23- Electric Demo
    and Electric disconnections	 	 	 	$89,177.87	 	$89,177.87	 	 	 	 	 	 	 	 	 	89,177.87	 	Complete	 	 
	ELECTRICAL	 	$939,220	 	 	 	$939,220.13	 	 	 	 	 	 	 	 	 	939,220.13	 	$0.00	 	 
	LIGHT FIXTURES - Supply (allowance)	 	$779,411	 	 	 	$779,411.00	 	 	 	 	 	 	 	 	 	779,411.00	 	$0.00	 	 
	FIRE ALARM	 	$229,000	 	 	 	$229,000.00	 	 	 	 	 	 	 	 	 	229,000.00	 	$0.00	 	 
	GENERATOR	 	$190,000	 	 	 	$190,000.00	 	 	 	 	 	 	 	 	 	190,000.00	 	$0.00	 	 
	SECURITY	 	$151,401	 	 	 	$151,401.00	 	 	 	 	 	 	 	 	 	151,401.00	 	$0.00	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Subtotal DIVISIONS 2-31	 	$22,014,265.88	 	$817,134.18	 	$22,831,400.06	 	$0.00	 	$0.00	 	0.0	 	$0.00	 	$22,831,400.06	 	$0.00	 	$0.00
	Subtotal GENERAL REQUIREMENTS	 	$1,489,640.00	 	$25,291.06	 	$1,514,931.06	 	$0.00	 	$0.00	 	0.0	 	$0.00	 	$1,514,931.06	 	NA	 	$0.00
	Insurance	 	$472,634.88	 	$0.00	 	$472,634.88	 	$0.00	 	$0.00	 	0.0	 	$0.00	 	$472,634.88	 	NA	 	 
	Construction
    Management	 	$704,017.00	 	$0.00	 	$704,017.00	 	$0.00	 	$0.00	 	0.0	 	$0.00	 	$704,017.00	 	NA	 	 
	Construction
    Contingency	 	$704,017.00	 	 	 	$704,017.00	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Total Hard Cost (core and
    shell) without contingency	 	$24,680,557.76	 	$842,425.24	 	$25,522,983.00	 	$0.00	 	$0.00	 	0.0	 	$0.00	 	$25,522,983.00	 	$0.00	 	$0.00
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Description
    of Work	 	Control
    Estimate	 	Change
    Orders	 	Scheduled
    value	 	Previous
    Work	 	This
    Application	 	%
    paid	 	Completed
    & stored	 	Balance
    to Finish	 	Retainer	 	Ref.
    Release
	Hard cost + Contingency	 	$26,227,000.00	 	 	 	$26,227,000.00	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	2nd
    Floor AlterationS	 	 	 	 	 	$100,000.00	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	2nd
    Floor Office fit out allowance	 	 	 	 	 	$127,500.00	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Total
    GMP Without (2nd floor alterations)	 	 	 	 	 	$25,999,500.00	 	 	 	 	 	 	 	 	 	 	 	 	 	 

 

    	4 of 4

    	 

    

  

SCHEDULE 12

 

	 	 	 	 	50
    VARICK STREET	 	 	 	 	 	 	 	 
		 	 	 	Block:
    212	 	 	 	Lot: 7504	 	 	 	Client:
    50 Varick LLC	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	1. CONSTRUCTION	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	Work
    Permit Status
	Work
    Description	 	Applicant
    Resp. for Plans	 	Date
    Appl.

    Filed	 	Date
    of

    Disappproval	 	Date
    Appl.

    Approved	 	Examiner's
    Name	 	Contractor's
    Name	 	Issue
    Date	 	Expiration
    Date
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	ALTERATION TYPE
    1 # 120911996 - CELLAR, 1-5, 5MEZ, 6, 7, 7MEZ & ROOF	 	 	 	 	 	 
	Architectural

    Fence	 	Morris
    Adjmi	 	 	 	 	 	 	 	 	 	Saif Sumalda @

    Foundations	 	3/28/2012	 	6/12/2013
	Structural	 	Borys
    Hayda	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Mechanical	 	Anthony
    Rini	 	12/12/2011	 	 	 	12/29/2011	 	N/A -
    Self Cert.	 	 	 	 	 	 
	Plumbing	 	Anthony
    Rini	 	 	 	 	 	 	 	 	 	Leslie Held @

    Nadkos, Inc.	 	1/17/2013	 	1/17/2014
	Curb Cut	 	Morris
    Adjmi	 	 	 	 	 	 	 	 	 	Saif Sumalda @

    Foundations	 	3/28/2012	 	6/12/2013
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	DEMO./CONSTRUCTION
    / DIR. 14 #120556683 - 1ST FLOOR	 	 	 	 	 	 
	Architectural	 	Morris
    Adjmi	 	 	 	 	 	 	 	 	 	Saif Sumalda @

    Foundations	 	12/28/2010	 	6/8/2013
	Mechanical	 	Morris
    Adjmi	 	12/15/2010	 	 	 	12/15/2010	 	N/A -
    Self Cert.	 	 	 	 	 	 
	Plumbing	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	DEMO./CONSTRUCTION
    / DIR. 14 #120556692 - 6TH FLOOR	 	 	 	 	 	 
	Architectural	 	Morris
    Adjmi	 	 	 	 	 	 	 	 	 	Saif Sumalda @

    Foundations	 	12/28/2010	 	7/17/2013
	Mechanical	 	Morris
    Adjmi	 	12/15/2010	 	 	 	12/15/2010	 	N/A -
    Self Cert.	 	 	 	 	 	 
	Plumbing	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	INTERIOR
    DEMO. / DIR. 14 #120883981 - 5TH FLOOR	 	 	 	 	 	 
	Architectural	 	Morris
    Adjmi	 	11/3/2011	 	 	 	11/3/2011	 	N/A -
    Self Cert.	 	Saif Sumalda @

    Foundations	 	11/3/2011	 	8/7/2013
	Plumbing	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	DEMO./CONSTRUCTION
    / DIR. 14 #120679168 -  ROOF	 	 	 	 	 	 
	Architectural	 	Morris
    Adjmi	 	5/2/2011	 	 	 	5/2/2011	 	N/A -
    Self Cert.	 	Saif Sumalda @

    Foundations	 	5/10/2011	 	8/3/2013
	Structural	 	Borys
    Hayda	 	 	 	 	 	 	 	 	 	 	 	 	 	 

 

Revised: 4/12/2013

 

    	Page 1 of 2

    	 

    

 

2.   PIPING (PLUMBING/
SPRINKLER / STANDPIPE)

 

	 	 	 	 	 	 	 	 	 	 	Permit
    Status	 	Sign
    of Process
	Applicant
    of

    Record:	 	Filed
    date:	 	Disapproval
    date:	 	Approval
    date:	 	Examiner's

    name:	 	Issued
    date:	 	Expiration
    date:	 	Sub-Contractor	 	Inspection	 	OP
    98. Filed
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Sprinkler
    # 120901765 - CELLAR, 1-5, 5MEZ, 6, 7, 7MEZ & ROOF	 	 	 	 	 	 	 	 
	Anthony
    Rini	 	12/13/2011	 	 	 	3/30/2012	 	Kwok Leung
    	 	 	 	 	 	 	 	 	 	 

 

3.   FIRE DEPARTMENT

 

	 	 	 	 	 	 	 	 	 	 	Fire
    Department Status:
	Applicant
    of

    Record:	 	Filed
    date:	 	Disapproval
    date:	 	Approval
    date:	 	Examiner's

    name:	 	Req.
    Inspection form A433 & B45 	 	Inspection
    Date:	 	Inspection
    Status:
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Fire Alarm
    #120921574- CELLAR, 1-5. 5MEZ, 6,7, 7 MEZ & ROOF	 	 	 	 	 	 	 	 
	Anthony Rini	 	12/13/2011	 	 	 	5/11/2012	 	Michael

    Alexander	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Fire
    Alarm #120585973
    - 6TH FLOOR	 	 	 	 	 	 	 
	Anthony Rini	 	1/25/2011	 	 	 	2/23/2011	 	Michael

    Alexander	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Fire
    Alarm #120585982
    -7TH FLOOR	 	 	 	 	 	 	 
	Anthony Rini	 	1/25/2011	 	 	 	2/23/2011	 	Michael

    Alexander 	 	 	 	 	 	 

 

Revised: 4/12/2013 

 

    	Page 2 of 2

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00220-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00220-of-00352.parquet"}]]