97 WAVERLY AVENUE

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such Purchaser’s loan amount, and the assignment of the severed portion to Purchaser’s lender and the consolidation of such severed portion of the mortgage indebtedness encumbering the Property with Purchaser’s mortgage. To the extent that the Purchaser is entitled to an exemption from the mortgage recording tax by reason of any prior mortgage against the Unit or the Property, including but not limited to Sponsor’s mortgage, the Purchaser shall pay to Sponsor at the Closing for such Unit the amount of any such exemption. The severance and assignment of a portion of the mortgage on the Property, as contemplated herein would not result in any additional risk or cost to the Purchaser; under no circumstance will this be the cause of Purchaser losing financing. Any severance/assignment transaction will be initiated only after financing has been procured by Purchaser. After Purchaser has obtained a commitment letter, Sponsor’s counsel will notify Purchaser to contact their len

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request of Sponsor, Purchaser shall fully cooperate with Sponsor in all respects in connection with the severance and assignment of a portion of the mortgage indebtedness encumbering the Property in an amount not to exceed such Purchaser’s loan amount, and the assignment of the severed po rtion to Purchaser’s lender and the consolidation of such severed portion of the mortgage indebtedness encumbering the Property with Purchaser’s mortgage. To the extent that the Purchaser is entitled to an exemption from the mortgage recording tax by reason of any prior mortgage against the Unit or the Property, including but not limited to Sponsor’s mortgage, the Pu rchaser shall pay to S ponsor at the Closing for such Unit the amount of any such exemption. The severance and assignment of a portion of the mortgage on the Property, as contemplated herein would not result in any additional risk or cost to the Purchaser; under no circ umstance will this be the cause of Purchaser losing finan

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19 COUNSEL ’S TAX OPINION .................................................................................................................... 121 WORKING CAPITAL FUND .................................................................................................................... 125 RESERVE FUND .................................................................................................................................... 126

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to exercise the right of rescission. Further, the Sponsor has materially complied with the Sponsor Designated Lender’s By-Laws requirements, and a Reserve Fund in the amount of ten percent (10%), or some lesser amount set forth in a reserve study, is required. However, such Reserve Fund may be established through the collection of Common Charges as such Reserve Fund is set forth in the Budget for the Condominium. A Purchaser of a Unit shall have thirty (30) days after the receipt of a signed counterpart of the Purchase Agreement from Sponsor to obtain a written financing commitment from the Sponsor Designated Lender. If the Purchaser does not receive a written fina ncing commitment from Sponsor Designated Lender within said thirty (30) day period, time shall be of the essence with respect to Purchaser’s obligation to notify Sponsor, in writing, within ten (10) business days after the thirty (30) day period to termina te the Purchase Agreement. Sponsor makes no represe

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section “Unit Closing Costs and Adjustments” set forth in Part I of the Offering Plan. 35. Purchasers shall make a contribution at Closing to the Working Capital Fund and Reserve Fund of the Condominium, payable to the Board of Managers, each in the sum of one months’ common charges then in effect for the Unit, as the same may be amended from time to time. Except for the initial contribution by Purchasers, the Working Capital Fund and Reserve Fund is funded through Common Charges. The first month’s Common Charges and contribution to the Working Capital Fund and Reserve Fund shall be due at Closing regardless of any delay in the collection of Common Charges. See the section “Unit Closing Costs and Adjustments” set forth in Part I of the Offering Plan.

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ng any such period of delay, the Sponsor will timely pay all expenses of the Condominium, including, but not limited to, insurance premiums and any reserve fund payments. Such expenses shall not include individual U nit Owner expenses such as real estate taxes, utility charges, etc. Upon

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h is based on a fully operational building. The Board of Managers may allocate surplus funds to a special purpose fund, retain surplus funds as the Working Capital Fund, or refund Common Charges. Sponsor reserves the right to use its majority vote on the Board of Managers to cause a refund to be issued to Unit Owners. If the actual expenses of operating the Condominium are less than the projected expenses set forth in the budget for the First Year of Operations then, to the extent such excess was paid by such Unit Owner, the difference between the actual expenses and the full common charges will be refunded to all Unit Owners (including the Sponsor) on a pro- rated basis in the form of either a credi t against future common charges or as a cash reimbursement to the extent that the Unit Owner (including the Sponsor ) has sold the Unit prior to the receipt of the full credit. Sponsor makes no warranty or representation that the operating expenses during this period will be l

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et of the condominium. No refund may be given unless all expenses of the condominium are paid, including but not limited to, insurance premiums and reserve funds. During the budget year following a year for which a refund was effectuated, no special assessment or increase in common charges shall be instituted to pay for any item which was set forth in the previous year’s budget and which was refunded to unit owners as per the foregoing. Sponsor shall remain obligated to update the budget for the Condominium as required by Department of Law governing regulations. See the section “Rights and Obligations of the Sponsor” set forth in Part I of the Offering Plan. 40. The Housing Merchant Implied Warranty (General Business Law Article 36-B) does not apply to this offering because that statut e applies only to new single family homes or new for sale units in a multi- unit residential structure which is five (5) stories or less in which title is transferred to Purchasers under

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t II of the Offering Plan. Purchase Price: The purchase price for a Unit. Purchaser: A purchaser of a Unit pursuant to a Purchase Agreement. Reserve Fund: A fund established for the Condominium for major capital expenditures such as the renewal or replacement of bu ilding components or systems or the remedy of major building defects. Rules and Regulations: The rules and regulations of the Condominium made in accordance with the By-Laws. The rules and regulations, which will apply unless and until amended by the Board of Managers, are set forth as an addendum to the By-Laws in Part II. Schedule A: The section of Part I of the Offering Plan “Schedule of Purchase Prices and Other Financial Details For The First Full Year of Operation”. Schedule B: The section of Part I of the Offering Plan “Sche dule of Estimated Income and Expenses For The First Full Year of Operation”. Schedule B-1: The section of Part I of the Offering Plan “Schedule of Estimated Utility

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Successor Sponsor, other than any Unit purchased by and for the use of Sponsor or Successor Sponsor, until such time as the same have been sold. Working Capital Fund: A fund held and used for working capital, closing costs and adjustments, unanticipated increases in budgeted or add itional Common Expenses, capital repairs or replacement or for such other appropriate purposes as will be determined by the Board of Managers. ZLDA: A zoning lot development agreement. 12

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h is based on a fully operational building. The Board of Managers may allocate surplus funds to a special purpose fund, retain surplus funds as the Working Capital Fund, or refund Common Charges. Sponsor reserves the right to use its majority vote on the Bo ard of Managers to cause a refund to be issued to Unit Owners. If the actual expenses of operating the Condominium are less than the projected expenses set fo rth in the budget for the First Ye ar of Operations then, to the extent such excess was paid by such Unit Owner, the difference between the actual expenses and the full common charges will be refunded to al l Unit Owners (including the Sponsor) on a pro- rated basis in the form of either a credit against future common charges or as a cash reimbursement to the extent that the Unit Owner (including the Sponsor ) has sold the Unit prior to the receipt of the full credit. Sponsor makes no warranty or representation that the operating expenses during this period will b

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t of the condominium. No refund may be given unless all expenses of the condominium are paid, including but not limited to, insurance premiums and reserve funds. During the budget year following a year for which a refund was effectuated, no special assessment or increase in common charges shall be instituted to pay for any item which was set forth in the previous year’s budget and which was refunded to unit owners as per the foregoing. Sponsor shall re main obligated to update the budget for the Co ndominium as required by Department of Law governing regulations. Limited Common Elements are Common Elements existing for the sole use and enjoyment of certain Unit Owners to the exclusion of al l other Unit Owners. Limited Common Elements include but are not limited to a ny facilities (pipes, s hut-off valves, wires, lines, conduits) that exclusively serve a Unit that are located behind its boundary walls or with in its boundary walls but not readily accessible without damage

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LIES (6) 1,000.00 $ SERVICE CONTRACTS (7) 3,000.00$ INSURANCE (8) 14,300.00$ MANAGEMENT FEE (9) LEGAL AND AUDIT FEES (10) 4,000.00$ RESERVE FUND (11) 4,072.00$ TOTAL OPERATING EXPENSES 40,714.76$ The Notes to Schedule B below are an integral part of this Schedule and should be read in conjunction herewith. Amounts are projected on the assumption that the First Year of Condominium Operation will be the year from July 1, 2026 to June 30, 2027. The actual First Year of Condominium Operation may begin earlier or later than that year. In the event the actual or anticipated commencement date of the First Year of Condominium Operation is to be delayed by six (6) months or more, Sponsor will amend the Plan to include a revised budget with current projections. If the amended budget exceeds this projected budget by twenty-five percent (25%) or more, Sponsor will offer all Purchasers the right to rescind their Purchase Agreements within not less than fifteen (15

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24, received from Frendel, Brow n & Weissman LLP, 655 Third Avenue, Suite 1400, New York, NY 10017. 11. Reserve A separate bank account for a reserve fund is being established; Section 2.6 of the Bylaws authorizes the Board of Managers to establ ish a reserve fund for th e Condominium for major capital expenditures such as the renewal or replacement of building components or systems or the remedy of major building defects (t he “Reserve Fund”). Purchasers shall make a contribution at Closing to the Working Capital Fund and Reserve Fund of the Condominium, payable to the Board of Managers, each in the sum of one months’ common charges then in effect for the Unit, as the same may be amended from time to time. Except for the initial contribution by Purchasers, the Working Capital Fund and Reserve Fund is funded through Common Charges. The budgeted figure does not include these init ial contributions. The Board of Managers, in its discretion, and subject to certain restr

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to exercise the right of rescission. Further, the Sponsor has materially complied with the Sponsor Designated Lender’s By-Laws requirements, and a Reserve Fund in the amount of ten percent ( 10%), or some lesser amount set forth in a reserve study, is required. However, such Re serve Fund may be established through the collection of Common Charges as such Reserve Fund is set forth in the Budget for the Condominium. A Purchaser of a Unit shall have thirty (30) days after the receipt of a signed counterpart of the Purchase Agreement from Sponsor to obt ain a written financi ng commitment from the Sponsor Designated Lender. If the Purchaser does not receive a writte n financing commitment from Sponsor Designated Lender within said thirty (30) day period, time shall be of the essence with respect to Purchaser’s obligation to notify Sponsor, in writing, within ten (10) business days after the thirty (30) day period to terminate the Purcha se Agreement. Sponsor makes no r

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al Fees Purchasers shall have sole responsibility for payment of all pr ofessionals, including attorney(s), employed or retained by Purchaser. Working Capital and Reserve Fund Contribution Purchasers shall make a contribution at Closing to the Working Capital Fund and Reserve Fund of the Condominium, payable to the Board of Managers, each in the sum of one months’ common charges then in effect for the Unit, as the same may be amended from time to time. Except for the initial contribution by Purchasers, the Working Capital Fund and Reserve Fund is funded through Common Charges. The first month’s Common Charges and contribution to the Working Capital Fund and Reserve Fund shall be due at Closing regardless of any delay in the collection of Common Charges. Example of Typical Closing Costs The following is a numerical example of all closing costs based on the presumptions set forth below and assuming current rates and charges: Assuming that a Purchaser closes tim

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h is based on a fully operational building. The Board of Managers may allocate surplus funds to a special purpose fund, retain surplus funds as the Working Capital Fund, or refund Common Charges. Sponsor reserves the right to use its majority vote on the Bo ard of Managers to cause a refund to be issued to Unit Owners. If the actual expenses of operating the Condominium are less than the projected expenses set fo rth in the budget for the First Ye ar of Operations then, to the extent such excess was paid by such Unit Owner, the difference between the actual expenses and the full common charges will be refunded to al l Unit Owners (including the Sponsor) on a pro- rated basis in the form of either a credit against future common charges or as a cash reimbursement to the extent that the Unit Owner (including the Sponsor ) has sold the Unit prior to the receipt of the full credit. Sponsor makes no warranty or representation that the operating expenses during this period will

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t of the condominium. No refund may be given unless all expenses of the condominium are paid, including but not limited to, insurance premiums and reserve funds. During the budget year following a year for which a refund was effectuated, no special assessment or increase in common charges shall be instituted to pay for any item which was set forth in the previous year’s budget and which was refunded to unit owners as per the foregoing. Sponsor shall re main obligated to update the budget for the Co ndominium as required by Department of Law governing regulations. Casualty Insurance Sponsor shall procure fire and casualty insurance, as set forth in Schedule B, pursuant to an agreed amount replacem ent value policy or in an amount sufficient to avoid co-insurance, as reflected in Schedule B. Such insurance will provide that each Unit Owner is an additional insured and that there will be no cance llation without thirty (30) days’ notice to the Board of Managers and Unit

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s and conditi ons as the Board of Managers will agree to provide for major and minor maintenance, repa irs, additions, improve ments, replacements, working capital, bad debts and unpaid Common Expe nses, insurance, depreciation, obsolescence and similar purposes (the repayment of any and all such debt may be secured and paid as provided in §339-jj of the New York Real Property Law). Members of the Board of Managers will have no liability to the Unit Owners or third parties for errors of judgment, negligence, or otherwise, except for errors constituting willful misconduct or bad faith. The Unit Owners will severally indemnify the members of the Board of Managers against any liability or claims except those arising out of their bad faith or willful misconduct, but the liability of any Unit Owner on account of su ch indemnification will be limited to such proportionate share thereof as th e Common Interest of such Unit Owner bears to the aggregate Common Interest of all Unit

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the Board of Managers does exercise its right of first refusal with respect to the sale of a Unit, the acquisition of the Unit may be made from the working capital and Common Charges, or, if such funds are insufficient, the Board of Managers may assess each Unit Owner, other than the offering Unit Own er, in proportion to each Unit Owner’s percentage of Common Interest, or may borrow money to finance such acquisition. The sole security which may be given for any funds so borrowed is the Unit to be acquired. The Board of Managers may also assess each Unit Owner, as provided above, for Common Charges for the Unit, or the rent due pursuant to the Lease, and for the cost of maintenance and repair s to such Unit. Neither the Board of Managers nor any Unit Owner shall be entitled to cast any votes attributable to such Unit. Notwithstanding the above, the right of first refusal held by the Board of Managers shall not adversely impact the rights of a mortgagee or its assignee to:

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ts, water, audit and legal expenses and reserves for capital expenditures, may include, in the discretion of the Board of Managers, other reserves, working capital and othe r sums necessary to carry on the affairs of the Condominium. The Common Charges will not include maintenance, repairs or decoration of any Units or portions thereof (except for structural repairs and Units acquired by the Board of Managers), payments required pursuant to the terms of any Unit Owner’s mortgage, or real estate taxes covering the individual Units. The liability of each Unit Owner for the pa yment of the Common Charges thereafter assessed or becoming due against their other Unit, shall terminate upon a permissible sale, transfer or other conveyance of such Unit together with the appurtenant interest in the Common Elements made by them in accordance with the applicable provisions of the By-Laws. In addition, any Unit Owner may, subject to the terms and conditions specified in the By-Laws,

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n come is taxable. Examples of income which is not exempt function income are common charges paid by owners of commercial units, interest earned on reserve funds, amounts received from persons who are not members of the Condominium management association, amounts received for work done on privately owned property which is not Condominium management association property, and amounts received from members for special use of the Condominium management associa tion’s facilities, the use of which is not available to all members as a result of having paid the dues, fees, or assessments required to be paid by all members. If the Condominium management association fails to qualify for or properly elect treatment under Code Section 528 for a taxable year, it may be subject to federal income taxation. You have advised me that you an ticipate that greater than eighty-five percent (85%) of the 123

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WORKING CAPITAL FUND The Purchaser of each Unit shall be required to make a contribution at the Closing to the working capital fund of the Condominium (the “Wor king Capital Fund”) in an amount equal to one (1) times the monthly Common Charges due with respect to such Unit as of the Closing. Sponsor will not be obligated to make any contributions to the Working Capital Fund, except to the extent it is funded by payment of Common Charges. The Working Capital Fund will be held and used for working capital, cl osing costs and adjustments, unant icipated increases in budgeted or additional Common Expenses, capital repairs or replacement or for such other appropriate purposes as will be determined by the Board of Managers. While Sponsor controls the Board of Managers, the Working Capital Fund will not be used to reduce estimated Common Charges. The Board of Managers will be able to utilize the money in the Working Capital Fund at any time and accordingly, no representat

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RESERVE FUND A separate bank account for a reserve fund is being established; Section 2.6 of the Bylaws authorizes the Board of Managers to establ ish a reserve fund for th e Condominium for major capital expenditures such as the renewal or replacement of building components or systems or the remedy of major building defects (the “Reserve Fund”). The Purchaser of each Unit shall be required to make a contribution at the Closing to the Reserve Fund in an amount equal to one (1) times the monthly Common Charges due with respect to such Unit as of the Closing. Except for the initial contribution by Purchasers, the Reserve Fund is funded through Common Charges; the exact amount of the Reserve Fund cannot be determined as it depends on the timing of when each Unit closes, however $4,072 is budgeted to accrue by the end of the First Year of Operation. The Board of Managers, in its discretion, may decide in future years to increase or decrease the reserve fund line item in t

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section of the Offering Plan, whether or not such costs are set forth in this Agreement. 9.5 Purchaser shall make a contribution at Closing to the Working Capital Fund and Reserve Fund of the Condominium, payable to the Board of Managers, each in the sum of one months’ common charges then in effect for the Unit, as the same may be amended from time to time. 9.6 Purchaser shall pay to the Board of Managers the Common Charges for the Unit for the first full month following the month in which title closes. 9.7 Purchaser shall pay the Real Estate Transfer Tax due to the State of New York (the so-called “deed stamps” and, if applicable, the so-called “mansion tax”), the Real Property Transfer Tax due to the City of New York and any other real property transfer tax due to the City or State of New York. Purchaser agre es to indemnify and hol d Sponsor harmless from and against any and all liabilities and expenses (including, without limitation, reasonable legal fees and disburs

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be furnished to the Board of Managers; (p) To collect funds from Unit Owners and accumulate reserves for capital replacements to the Units (the "Reserve Fund"). The Reserve F und, if any, shall be used for the periodic maintenance, repair and replacement of the Common Elements; (q) To collect monthly escrows from Unit Owners with their Common Charges for the payment of real estate taxes attributable to individual Units based upon the estimated tax bill for the entire Property at the then current ta x rate until all of the Units are separately assessed, and deposit the same in a tax escr ow account established by Declarant pursuant to an offering plan filed with the New York State Department of Law; (r) To pay real estate taxes attributable to individual and separately assessed Units and assess such amounts to such Unit Owners as Common Charges or a Special Assessment; (s) To establish, enforce, amend and otherwise modify Rules and Regulations relating to the oper

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he Board of Managers does exerci se its right of first refusal with respect to the sale of a Unit, the acquisition of the Un it may be made from the working capital and Common Charges, or, if such funds are insuff icient, the Board of Managers may assess each Unit Owner, other than the offering Unit Owner, in proportion to each Unit Owner’s percentage of Common Interest, or may bor row money to finance such acquisition. The sole security which may be given for any funds so borrowed is the Unit to be acquired. The Board of Managers may also assess each Unit Owner, as provided above, for Common Charges for the Unit, or the rent due pursuant to the Lease, and for the cost of maintenance and repairs to such Unit. Neither the Boar d of Managers nor any Unit Owner shall be entitled to cast any votes attributable to such Unit. (f) Notwithstanding the above, the right of firs t refusal held by the Board of Managers shall not adversely impact the rights of a mortgagee or its assign

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including but not limited to, insurance premiums and reserve funds. During the budget year following a year for which a refund was effectuated, no special assessment or increase in common charges shall be instituted to pay for any item which was set forth in the previous year’s budget and which was refunded to unit owners as per the foregoing. Sponsor shall remain obligated to update the budget for the Condominium as required by Department of Law governing regulations. See the section “Rights and Obligations of the Sponsor” set forth in Part I of the Offering Plan. 40. The Housing Merchant Implied Warranty (General Business Law Article 36-B) does not apply to this offering because that statut e applies only to new single family homes or new for sale units in a multi- unit residential structure which is five (5) stories or less in which title is transferred to Purchasers under a cooperative or condominium regime. The Housing Merchant Implied Warranty (General Business

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onsor sells and conveys those Units. If any Unit Owner fails to pay a Unit’s pro rata share of real estate taxes when due, by Common Charge billing, special assessment billing, or both, the Board of Managers will have a lien on such Unit for non-payment thereof, as if such charges were Common Charges. If the actual taxes due are lower than the amount collected and held in escrow, then the Board of Managers shall pay the Unit Owners their proportionate share of any excess. At such time that the individual Units have been separately assessed, Unit Owners shall make a payment directly to the New York City Department of Finance no later than the due date for such real estate tax payment. Unit Owners shall notify the Board of Managers that the individual Units have been separately assessed and any sum collect ed and held in escrow not paid toward real estate taxes shall be reimbursed to the Unit Owner or Sponsor who advanced same. See the section “Real Estate Taxes” set forth

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associated with the operation of the storage space areas for the Licensed Spaces, and (ii) the payment of any maintenance fees, license fees and/or Special Assessments imposed by the Board of Managers related to the Licensed Space. The Board of Managers shall have the authority, pursuant to the By-Laws, to terminate a license with no reimbursement for any consideration paid to acquire the license, in the event of a default in the payment of any monthly License Fee. Each Unit will have a refrigerator/freezer, dish washer, washer and dryer, and range with oven and hood. Sponsor anticipates providing appliances in each of the Units manufactured by the manufacturers set forth in the Description of Property and Specifications and Building Condition. The Sponsor reserves the right to provide fixtures and appliances from a variety of manufacturers of Equal or Better Quality than those set forth in the Description of Property and Specifications and Building Condition. All fixture

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associated with the operation of the storage space areas for the Licensed Spaces, and (ii) the payment of any maintenance fees, license fees and/or Special Assessments imposed by the Board of Managers related to the Licensed Space. The Board of Managers shall have the authority, pursuant to the By-Laws, to terminate a license with no reimbursement for any consideration paid to acquire the license, in the event of a default in the payment of any monthly License Fee. Each Unit will have a refrigerator/freezer, dish washer, washer and dryer, and range with oven and hood. Sponsor anticipates providing appliances in each of the Units manufactured by the manufacturers set forth in the Description of Property and Specifications and Building Condition. Sponsor reserves the right to provide fixtures an d appliances from a variety of manufacturers of Equal or Better Quality than those set forth in the Description of Property and Specifications and Building Condition. All fixtures a

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including but not limited to, insurance premiums and reserve funds. During the budget year following a year for which a refund was effectuated, no special assessment or increase in common charges shall be instituted to pay for any item which was set forth in the previous year’s budget and which was refunded to unit owners as per the foregoing. Sponsor shall re main obligated to update the budget for the Co ndominium as required by Department of Law governing regulations. Limited Common Elements are Common Elements existing for the sole use and enjoyment of certain Unit Owners to the exclusion of al l other Unit Owners. Limited Common Elements include but are not limited to a ny facilities (pipes, s hut-off valves, wires, lines, conduits) that exclusively serve a Unit that are located behind its boundary walls or with in its boundary walls but not readily accessible without damage to such boundary walls, balconies, terraces, or yards that are allocated for the exclusive us

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onsor sells and conveys those Units. If any Unit Owner fails to pay a Unit’s pro rata share of real estate taxes when due, by Common Charge billing, special assessment billing, or both, the Board of Managers will have a lien on such Unit for non-payment thereof, as if such charges were Common Charges. If the actual taxes due are lower than the amoun t collected and held in escrow, then the Board of Managers shall pay the Unit Owners thei r proportionate share of any excess. At such time that the individual Units ha ve been separately assessed, Unit Owners shall make a payment directly to the New York City Department of Finance no later than the due date for such real estate tax payment. Unit Owners shall notify the Board of Managers that the individual Units have been separately assessed and a ny sum collected and held in escrow not paid toward real estate taxes shall be reimbursed to the Unit Owner or Sponsor who advanced same. Until the Units have been separately asses

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lidated Laws of the State of New York, General Business Law, Volume 19, page 160. Operating Expenses Sponsor agrees to pay all Common Charges, special assessments and real estate taxes with respect to all Unsold Units imposed by Board of Managers in accordance with this Offering Plan. Sponsor represents that it has the financial resources to meet its obligations with respect to Unsold Units. Sponsor expects to fund its financial obligations to the Condominium from the income from projected sales and if necessary, from the personal financial assets of Sponsor’s principal. Except as specifically set forth herein, no bond or other security has been furnished to secure Sponsor’s obligations hereunder; Sponsor currently has sufficient funds to fulfill its obligations. Sponsor has the financial resources to complete its obligations under the Offering Plan. Sponsor is reserving the right to delay the collection of Common Charges. During any such 73

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including but not limited to, insurance premiums and reserve funds. During the budget year following a year for which a refund was effectuated, no special assessment or increase in common charges shall be instituted to pay for any item which was set forth in the previous year’s budget and which was refunded to unit owners as per the foregoing. Sponsor shall re main obligated to update the budget for the Co ndominium as required by Department of Law governing regulations. Casualty Insurance Sponsor shall procure fire and casualty insurance, as set forth in Schedule B, pursuant to an agreed amount replacem ent value policy or in an amount sufficient to avoid co-insurance, as reflected in Schedule B. Such insurance will provide that each Unit Owner is an additional insured and that there will be no cance llation without thirty (30) days’ notice to the Board of Managers and Unit Owners. The insurance policies will also contain waivers of s ubrogation, waivers of invalidi

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onsor sells and conveys those Units. If any Unit Owner fails to pay a Unit’s pro rata share of real estate taxes when due, by Common Charge billing, special assessment billing, or both, the Board of Managers will have a lien on such Unit for non-payment thereof, as if such charges were Common Charges. If the actual taxes due are lower than the amoun t collected and held in escrow, then the Board of Managers shall pay the Unit Owners thei r proportionate share of any excess. At such time that the individual Units ha ve been separately assessed, Unit Owners shall make a payment directly to the New York City Department of Finance no later than the due date for such real estate tax payment. Unit Owners shall notify the Board of Managers that the individual Units have been separately assessed and a ny sum collected and held in escrow not paid toward real estate taxes shall be reimbursed to the Unit Owner or Sponsor who advanced same. Prospective Purchasers are advised to read

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nagers, in its discretion, may decide in future years to increase or decrease the reserve fund line item in the Condominium’s annual budget or issue special assessments to finance needed capital expenditures. While the Sponsor is in cont rol of the Board of Managers, Sponsor will not use Reserve Fund monies to reduce common charges. Given the Building’s age and condition, it is anticipated that the reserve fund as it accumulates will be suffi cient to pay for the replacement of any capital items likely to be needed within the first five (5) years of Condominium operation. Neither the Department of Law nor any government agency has passed upon the adequacy of the Reserve Fund. No representation or warranty is made that the Reserve Fund will be, or is intended to be, adequate to cover current or future expenses, for th e first or any subsequent year of Condominium Operation. 126

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ay a monthly License Fee to Licensor as determined by Licensor in the budget. License Fees are charged and paid independently of Common Charges and special assessments only to Li censees. A Licensee may abandon and terminate 166

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rge s and assessments collected, to maintain, care for and preserve the Common Elements, and the Common Elements. In no event shall Common Charges, special assessments or other funds received by the Board of Managers in connection with repairs of the Common Elements to be utilized to defray any expenses other than those related to the maintenan ce, repair and preservation of the Common 260

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To pay real estate taxes attributable to individual and separately assessed Units and assess such amounts to such Unit Owners as Common Charges or a Special Assessment; (s) To establish, enforce, amend and otherwise modify Rules and Regulations relating to the operation of the Condominium from time to time, and such Rules and Regulations, and any amendments thereto, shall be binding upon the Unit Owners thirty (30) days after the date the Board of Managers has approved them in wr iting and delivered a copy of the same to each Unit Owner. Such Rules and Regulations, and any amendments thereto, shall be applied uniformly to all Unit Owners; and (t) To impose move-in fees, charges, or transfer fees in connection with the sale or lease of a Unit; (u) To levy fines against Unit Owners for violations of the Declaration, By-Laws, or Rules and Regulations governing the operation and use of the Property. 262

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the amount of and assess Common Charges, the Board of Managers shall have the right, subject to the strictures set forth in these By- Laws, to levy special assessments (“Special As sessments”) to meet the Common Expenses. The Board of Managers shall give each Unit Owner not less than ten (10) days’ written notice prior to the date upon which the Board of Managers shal l meet to discuss levying Special Assessments, with reasonable detail of the nature and purpose of the Special Assessment. Special Assessments shall be based on Common Interest or the proportion of expenses and charges fairly attributable to Units, based upon estimated usage of particular services, or based upon special or exclusive use or availability or exclusive control of par ticular Common Elements by particular Unit Owners. Special Assessments may be payable either in one lump sum or in installments, as the Board of Managers shall determine, provided, however, that the Board of Managers shall give each U

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es shall constitute additional Common Charges. 9.3. Failure to Pay Assessments. 9.3.1. Unit Owners shall pay promptly when Common Charges and Special Assessments are assessed against their Unit. Any Unit Owner who fails to pay Common Charges shall be liable for any expenses incurred by the Board of Mana gers in collecting said monthly Common Charge assessment, including interest at the highest legal rate and reasonable attorneys' fees. 9.3.2. In the event of a defa ult in the payment of a ny monthly Common Charge assessment by any Unit Owner except Declarant, th e Board of Managers, at its sole option, may declare the Common Charge assessment on said Un it Owner's Unit for the balance of the fiscal year immediately due and payable. Prior to making any such declaration following a default, the Board of Managers shall send notice to the delinquent Unit Owner and the Permitted Mortgagee, if any, giving the Unit Owner a five (5) day gr ace period in which to make their p

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nd maintained a cash deposit account to be known as the "Operating Account" into which shall be deposited the operating portion of all monthly and special assessments as fixed and determined for all Units. Disbursements from said account shall be for the general needs of the operation including, but not limited to, wages, repairs, 274

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uch Rules and Regulations, and any amendments thereto, shall be applied uniformly to all Unit Owners; and (t) To impose move-in fees, charges, or transfer fees in connection with the sale or lease of a Unit; (u) To levy fines against Unit Owners for violations of the Declaration, By-Laws, or Rules and Regulations governing the operation and use of the Property. 262