From: Richard Kahn • To: "Jeffrey E." <[email protected]> Subject: Re: AYH Banco Poplar Loan Date: Thu, 21 Jan 2016 18:46:36 +0000 spoke with jeffers this am after leaving message with him yesterday we have another call at 3pm est to review his figures Richard Kahn HBRK Associates Inc. 575 Lexington Avenue 4th Floor New York, NY 10022 tel 212-971-1306 fax 646-350-0954 cell 917-414-7584 On Jan 21, 2016, at 1:45 PM, jeffrey E. <[email protected]> wrote: did we get a new ashpalt quote 9 On Thu, Jan 21, 2016 at 2:37 PM, Richard Kahn < wrote: attached is Banco Poplar term sheet which i just discussed with Mark Lande, IGY attorney. AYH plans to move forward with option 2 on attached term sheet which is as follows: a) 7 year extension of loan from date it is signed (projected - Feb 1, 2016) -> note original expiration was Sep 2017 so extension is approximately 5.5 years b) current interest rate is 1 month libor 0.3655 plus 235 basis points = 2.7155% -> that rate will probably increase in line with each fed increase (60-100 basis points targeted for 2016) c) interest rate per extension is 4.95% vs 2.7155% current rate = 2.2345% additional cost x 12,900,000 (approx outstanding balance) = 288,250 in additional debt service -> that difference will narrow as libor increases d) bank fee of 0.50% of 12,900,000 will cost AYH 64,500 Mark stated that Yacht haven loan is 6+% and he was very pleased with 4.95% rate He also stated that property has plenty of extra cash flow and they are not to concerned with additional debt service costs Please advise Thank you EFTA00836041

Per 2014 Financial statement footnote The Company obtained a $15,300,000 loan facility from a bank on August 23, 2007. Interest accrues at LIBOR plus 2.35%. Principal and interest are due monthly and the loan matures on September 1, 2017. At December 31, 2014 and 2013, the principal amount outstanding under the loan was $13,286,700 and $13,632,900, respectively. The interest rate in effect at December 31, 2014 was 2.58% (calculated based on a blended LIBOR rate of 0.23% plus 2.35%). The interest rate in effect at December 31, 2013 was 2.60% (calculated based on a blended LIBOR rate of .25% plus 2.35%). The loan is collateralized by the real property and improvements thereon, the Company's rights under its retail leases, certain cash accounts, and accounts receivable of the Company. As part of a security agreement with the bank, the bank has required that certain cash accounts of the Company be pledged to the bank. This amount is shown as restricted cash on the balance sheets in the amount of $1,856,705 and $1,238,200 at December 31, 2014 and 2013, respectively. The terms of the loan contain certain financial covenants, negative covenants, and other terms and conditions customarily found in loan agreements of this type. The Company has complied with the covenants and terms in all material respects. Richard Kahn HBRK Associates Inc. 575 Lexington Avenue 4th Floor New York, NY 10022 tel 212-971-1306 fax 646-350-0954 cell 917-414-7584 Begin forwarded message: From: "Lande, Mark" Subject: RE: 9.15 Reporting - American Yacht Harbor Date: January 20. 2016 at 10:10:32 AM EST EFTA00836042