Bcrrln Proportlo* LLC(M.dt.t Ciht pril.ci)

Agrt!&Upon Proc.dulq

For Iaa Pclod Jrrlrr' 27, Zm7Thlrrh Iboorbor Jr. 2ir1t

BERSIN PROPERNES, LLC(UEDLEY CEMTER PROECT)

AOREED.T,PON PROCEDI.|REs

Coniadr

Ind.p.nddl AeounbnB Rlpo on Apply|t{ Aerlcd4Jpoi Ptrocr&rlr. . . . . . . , " '

Otlr.r lnlb don:Safi.duL d Conr A..odfrd llm $r Pqlral

For Th. F.rlod J.rruJy 27, m07 U|ot{h D66inb.t 3l ' 201t

Dc|.I of T.)( Ptrr|f,*a PIgt ldrd R BrttlnF6 Th. Ftdod Jfrr y27,2007l|fw0h D.clmbcrot,2011 .'.. ..

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INDEPENDENT ACCOUNTANTS' REPORTON APPTYING AGREED.UPON PROCEDURES

Bersln Fropertles, LLC285 M€dley Csntre Patkei,ayRocha6lsr, NY 14622anclCounty of Monroo Indu8flal Developmenl Agency8100 Clty Place50 We8t Maln Str€giRooh€ole( NY l4614

We hav6 porformod the ffocedures 6numera!8d bslow, which wero agro€d to by BerslnProportlos, LLC and tho County of Monroo Induslrlal Dewlopmont Agenoy ("cOMlDA), to theSchodulg ot Cosb .Ascoolst€d wllh thg Prdect tor M€dlay Centor for lhe perlod oornm€nclngJanvary 27, ?!,07 (proparty p{.rroha8e date) end ondlng Decsmber 31, 2011 sqlely to asrlgtBersln Propertles, LLC in determining coEt e,Oondlture6 Inoured In a manner establlshod by trh€County of Monroe Induslrlsl D6v€lopm6nt Agoncy Payment In Lbu of TEx A0r6om€nt doounontsectlon 8,1.2. Ths entitles, Beroin Prop6rlle6, LLc snd SRC Dovelopmont Group, LLc, whlchopsratgs a8 thg leadng agent aro collectiv€ly roforgd to ao "Bgrsln', Bgrsln managgm€nt l8responslble for thc Soh€dul6 of Cost8 A8loclated vrlth th6 ProJ€ct fior Mgdley C6nt€r. Thleagreed upon proagdut€S ongaggment t/rtat conducted In sccordanco wlth attestatlon etandErd6e8tabllohod by tho Amedosn Instllute of Ceditl€d Publlc Aocounlanto, Tho rufflclEncy of lh€procadures le eolely ths responsiblllty of those pErlle8 spoclfiod In ths r€porl. Consoquently, wemakr no rcp]gsentallon rsgardlng th6 8ufflcleacy of lhe procedure8 dsscrlbod below oither forth€ purpogo for w|rlch thh report ha8 bsgn raqueStgd or for any oth€r purposs,

Oth6r oxplanatory languag3:

On gn annual basl8, Bg|sln prepar€d ggnefal lodg€rs, trlal balancas, 6nd traneectlon roporte byperlod; e€oh rgfered to aq accountlng nrcord8. Borsin 8l3o pr€par9d eohgdulg! of incurr€d butunpsld co8ts.

Ths County of Monroe lnduetrlal DovElopm€ht Agsncy Paymont In Ueu ot TBx Agrcemsntdocum€nt Bootlon 8,1,2. rtates tho followlng:

"-..lovsle ot dovelopnont tha be neaowad by totallng thoso suns pald or lnau ed infudhennca ot the Proloct lnoludtv wutout Inttatlon costs of land aaqubltlfft, markdlngto6s, toga/ tge€, hoad costs and'$ft c06tg", fi",,n one or morc soLrcea,.,'

Our proc€du|€s and tlndlngs er€ as follows:

1, Ws obtaln€d the followlng documenb:. Exosrpts trom th6 Aoqul8ltion Agr?amor deted Decgmbor 31, 2006 by and betw€sn

Adam S. Borsln, as Transteror and Scott R. Cong€I, as Tranrferoe for the MedloyCsnler ProJ6ol.

. Nomura foan olosing etst€mont5 dat€d Januaty 27,2007, April2,2007, and June 11,2008 (Sch€dules of souroc8 and uses offundE),

I4 cllnlon 6quol! . 6{116 104 ' 6yfacu&, Now \()ft 13202 . Phon. (316) 475-6954 . Fai (316} 476-2937

16ThqnmodD v!'alt 3 ' lrhr4. Nd v'lr 360. Fhoio (307)2a€ 0132. Frx{00?}2364190

#;;;;;ru,;Cir[Eod PuubAccol rnb. PC.

I

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. Coploe of Bersin loan rcquisitlons ser{ to Nomure from January 2007 throwhMarch 13, 2009-

. 6;;; jeiil; of Bereln Prqportles, LLc and sRc Development Group' LLc byy€ar from 2OO7 through Decrmber 31,2011.

. ?s;r"snJ ithi Balsn-c€8 of Belsln Properll€s, LLC and sRC Dev€lopment Group'LLc from Janusry 27, 2097 lhrough Doc€mber 31 , 201 1

. iLn"-Jiitori renoite ot g"otn pt-p"ttt"", LLc and sRc Dovelopmsnt Group' LLc byv€ar trom Jandarv 27,2007 through December 3'1,2011'

. Favment ln U€u of Tax Aglo6m0nt bstw€gn Counly ot Monro€ In0uslrl6lbiGiopinilit isi"cy and Berein Propertles. LLc dated Apr 8,2009 from Gllbodl'Stlnzlano, Helnlz & Sm[h, PC.

. cilfl il;di;; Gw tnd Rulos (OPLR) sectiqn 5001 - s004.governing rata orlntelgst lor tudgmanis provldod by Gllbslti' Stlnzisno' H€htz & smm PU'

. Letter r.ga;dlng €3tim.ted "bas€ case' yleld €xpoctation of rat9 or return lrorn Ranen. Real Estato Partnere, LP.. Cipi* irr pni int"des from Bercln datod January 27, 2007 through Dec€mber 31,

20'11.. ibF anu Paychox Payroll records from January 1,2008 through DecEmb6r 31'

2011.. Sar"Oulss of costs lncurEd but unpald es ot Deo€mber3l.2011 lncludlng. a

s€t€dule of acoounl! payebio' e schedule of eccrued payroll and b€nefltg ano a8ah€dulo of payabhs due al loqn olosing

. SclEdulor of qccrugd Into|€st

. Ciopi ot unpaU tnvolc6s frdm B6t8ln EE of DBc€mber 31, 2011': d;i;il

- i;;--;;ctrttvee/prlnclpat emplovment sgrcomont lottor dat'dDecomber 7, 2010.

. F6iiiti i',tair6em6nt companv' LLc AdvlEory Sowlcse Engsgement Lotter det€dJune 1,2011

. 6i]ig"ittleim gcnursl morQage loan prcposal tor tho Prop€rty detred Jy!P-??'-291.1'

. Monl*htv loan -staism€nto from C,anterttn; Capltal Group ior iosn l'l-0000976 {qlqdlil-;6tid;ia ,nnt ihrousn Decembcrg,2007, Jsnuart' 9,2008' Apd 91 2008'Jr-,i; g. too8, Julv 9,200d, ssplembcr 9,2008 through Dec€Nnber 9,2008'

-andiiiirei'v si Tooet ttiroush Airtl 9, 200q for loon 11'0001004 datsdr ociober 9' 2007i"i-ri5",i;oeie.2oo7. J;huary s,2oo8 through Marc,tr 9, 2008, JunB 9, 2008,iri""r e, tljob lit."gh December g, 2o0E and Jsnuary 9. 2009 through Aprll 9'2009.

W€ tracod cosls trom tho Schedulo of Coste Aseoclated wlth ths Project, Purchase ofiiio"rr"

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-Cb"rts costs lgotlons, to the l'lornure toan cloglng 8lat€ment dat€d

jitiii"i zz.-Zoof Ai[H purcheso), the Acqulsltion Agreom€nt datsd Docembor 31,2008. tfis Nqmura loan cloding ltetement dated Aprll 2' 2007 (Bon-Ton purcnas€)' anottre N;ura toan ctoetng Etatemont dat€d June 11, 2008 (Cosl€llo purcha6€)

W€ matchad and aor€ed expondltwes Includsd In lhe L€aslng'-Dcvelopm€nt andoiriitrJ"i *.tt"ne ;l th€ sciledrle of costr Aesocrated wlth tho Prde61 to coples ofrniioicii, me ano eaydux pqyroll r€cords and io lh€ Eorsln sccounllng records

For these.cogtg, w€ pgrbrmed ths iollowlng procgdures:

"i niriiJ

"tn6rr*i per thB copled psld lnvolccs io Bersln accountlng records and lo

' th; Sch€duls of Corts As6oclat€d v'dlh lhe Projoctb) il;;;;t-^tll, i;iii ino retmouresments

'pald per ADP and Pavchex pavroll-'

,elorde do ilerstn accounllng records snd to thE schsdul6 of CoEts Assocletsd withth€ Pror€ot.

c) Agrs€d expondituros paid not Inclqded abow to tho Bersin GEn€ral Ledgsfe whlchwerg used to preparo ths incom€ lax retums, wllch r6pr$onted approxlm|lely 3%of thg totdl coig ac€oclatsd lvlth the projoci to whiclt proc€dur€B w€r€ appllod.

4. VV€ mathematlcglly v6rlll6d th€ tolalr presontiEd on lho schsdulos oi co8b incuffod bulunosid,

5. Wg m.tched eM agrsed amounb lholud€d In OutEtandlng payables in lho Operatlong8eotion of lhe gchodule of Colte As8oolatod wlth the Prolact lo Befsln'8 Schedule ofAccotrtg Payeble and tio oopled ot inwlcs6.

6, We taced morgage intorqet, roal estate tsxes, and Insurance pald trom Nomura loan€solow aocountc Includod on the Sch6dul6 of Costs Assoclat€d wllh the Prol€ot to lheCanterllns Caplt€l Oroup 8l€trm€nt8 provld.d.

7 Ws trac€d unpsid psyfoll costs of the two key ex€cutlws/prlnclpal8 of Bersln fJom ih€gchedule of Co3l8 As8oalat€d wllh thg Projed to tho sch€dul€ of unpald payroll sndbenoflls And to the snploym€nt agag€lnor( lelEr, recalculqted lhe unpaid payroll costsand malfigmallcslly vorlfl€d lhe celculallon of.markup,

L W€ mathematlcally v6rm:rrd thc accruod lrdBr€st cherges on csplGl ae calculated byB6r8ln wing Inbresl ratos ba|ed qn logal ldvica of Gfib€rtl, Stlnzano, Helnlz & Sn lh,P.C, snd profgrslonsl oplnlon of Ransrl R€al E8tale Parlnor€, LP obtalned by Borsh andcomparod It io tho S0hedulo ol CGt8 Ar6ociat€d wlth the Projoct,

Of lhe $90,303,50'f from the Soh€dulr of Coet8 Associsted wIh the Project to whlch procedureewors appll€d, no exceptlonE ir€ro noGd.

W6 w6|t not eng.gsd !o, end dld not aonduct an audlt, fte objeotive of $rhlch weuld be theexpferslon of an 9plnlon On tho aosountlng rgco|d8" Accordlrcly, wE do net..qxprea8 Euch anoplnlon, Had ws pertomrd addltlonel prgc€dur€g, olhor malter6 mighl haw come to ourattentlon that would ha\€ b€€n roportsd to you.

Thls repod ia int€ndad Eololy for tho us6 ot the Be|!]n Prop.rlle!, l-LC and County of MonroeInduotrlal Dewlopmont Agoncy, end thould not be u8ed by €nyone other than the8e specltl€dparueS.

Sinqerely,

DIMARCO. ABIUSI & PASCARELLA. P.C-

&lltut, tr,ltuilf.nlta,*'q

Syracu8o, NYAp l 16,2012

OTHERINFORMATION

A!l!h Pop.rtbr, LLc(Medl.Y C6nbr Prcl.cl)

Schedtllo ol Cotlr Altocl.hd n4ft tho ProlgciFor Tho Plrlod Januqry 27, 2007 through D.combof 31' 2011

Purqhar.! of efoporlvln alPu|lhaa6Bon.bn purchas€Cosbflo purchdso

chdlo-cQd!Inltl6lputrh.|o {116 oid tantqcllonr co3FTax6o snd f6ar peld st Inlllal propady plrchascp€qrl.lllon odghallon t6o

Eha!$!l!r!-Peyrbl! el clo.tng ' Ootu{DA Agoncy rce

!!nrh!Loa.lng clab . 2007Leesln€ coqtc " 200!L€islng .o!1. - 2009L€arlng clali 2010Addlllonrl 1.6.6 colb

Oorroltrfitu .Dealgn icM Enlg.dhoArchlteslotal/EnOhooind

oth6r atudlos, ft69Town. Cooolluctlon lmpslt PILOT PeymlnlLog.l

9!!E!0rnutl0lb.PsyrolmdcsSacurllycohlrhullontlnrurailcgR.prlF/M.huoffloe

Payabb! - Ool.tandlngAccru€d Fr|y|lll

Mort06$ htabstInlurano! Ptld fron 6acros,Real6!ldt lar3| Psld fom 69crow 'Rlal r.t4t! Lxos pald lrotn cspltolfundlng .

Iniorost Cha€aa on caplhl

Tol.l

gi!l!

,127,1012,362,201

878,061

0{2,188760,373228,158

2,046p00

2,910,66€2,890,2351,263,818

81,7s)8n,072

ao7/21r95,0@

1,701,5981S7500512,107500,000

3,S66,0S0

1,98q2$1.842,0t01201,142

87,9f14.,s24

1,62t,1[1s,146,14

770,399

3,30{3{0403,941

l.{20,938t,998,141

20/40t,197

t s0.30E.604

Bo6ln ProP€rllss' LLC(Mrdl6y c'ribt ProJ'cl)

'"",* *ffii jiJ#Jil}"Jli''fr"jff g"ml u' "'

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$ 93C,158u,18996'167

29t175

PILOT Program F€$Dodg6 Parcll l3r€3Msdby C.tnlor T.rMonroo Collnty IDA Feo

I f./.rl P.td at tnl(at purch's' clottns

mO7 R€.|Erbt Taxot2OO8 TOWn PrcrC y T'r200! County ProP!,tY Trx2008 SchoolTaxPILoT Bato Paym6ni 2008PILOT 8o6€ Panant 200S20OO RoalEltat,T'xs3

I fo''lp.td vkEe,4w

Efr.oi;c o.$ gohool Paym'hlcoMtDA Aooncy F'6

'.H:lH ffi ::ill"ii',lJii:fi:'".P[oT Bats P,vmenl2010FILOT Balr Psymoitl 201 1Irrclat oleirlct T,xo8 -2010

n#:Hffi:n6T#'-""'fottt ptld .ffir t&fin t,r/wttl lundw

JelL

7e4,080t6,71794,211

861,962421120859,1907?,J.242

e t lrosgf

$ t00,000656,000250'00060.000

3i12.015t1tB64160 08€1qo,(8J

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