EFTA00963919.pdf

From: Cecile de Jongh < To: JEE leevacation@gmail.com> Subject: Fwd: AYH Issues Date: Fri, 21 Jun 2013 22:12:36 +0000 FYI below. With warm regards, Cecile Sent from my iPhone Begin forwarded message: From: "Farkas, Andrew L." 5 Date: June 21, 2013, 5:55:03 PM GMT-04:00 < To: ' Subject: Re: AYH Issues I have forwarded this to Frank Garrison who is handling the matter in its entirety for igy. Please communicate directly with him. Thank you. From: Cecile de Jongh [mallto Sent: Friday, June 21, 2013 04:24 PM To: Farkas, Andrew L. Subject: AYH Issues Good afternoon Andrew, Jeffrey asked me to relay the following to you: It appears that there was an overpayment on the price by approximately of $5 million as part of the Sun/MOF purchase. In addition, there is at least a $180,000 from the error adjustment owed with interest plus a return of leasing fees paid on leases that defaulted; after financial review. There are $4.5 million in fees that have been paid out over the past six years that have allowed IGY to take almost 100% of its investment out of this investment. Additionally, this was a non-arms-length transaction between you and Jeffrey which makes the level of these fees fairly incongruous. As Jeffrey and I see this, there are three solutions to the AYH issue which would settle the matter in a fair and equitable manner and they are as follows: 1. IGY returns his investment plus interest, and he becomes simply a tenant paying rent at fair market. 2. IGY agrees to renegotiate the Management Agreement as well as pay Jeffrey the $2.5 million for the overpayment on the purchase price, half of the acquisitions fee of $250,000, the $180,000 error from six years ago plus interest and his share of the leasing commissions that were erroneously earned on tenants who defaulted. 3. Since IGY has already taken out all its equity, it walks away, leaves Jeffrey with the $1million in cash, and he takes over ownership and management of the property. Please let us know your thoughts on the proposed solutions. EFTA00963919 With warm regards, Cecile DISCLAIMER: The information contained in this e-mail may be privileged,confidential, and protected from disclosure. If you are not the intended recipient, you are hereby notified that any dissemination, distribution or duplication of this communication is strictly prohibited. If you have received this communication in error, please notify the sender immediately and delete all copies. "Nearly all men can stand adversity, but if you want to test a man's character, give him power." Abraham Lincoln (CP" Please consider the environment before printing this e-mail. This message, and any attachments hereto, is confidential and intended exclusively for the use of the individual or entity to whom it is addressed. This communication may contain information that is confidential, proprietary, privileged, subject to a confidentiality and/or non-disclosure agreement, or otherwise exempt or protected from disclosure (either by contract or under applicable law). If you are not the intended recipient, you are hereby notified that printing, retaining, reproducing, copying, disclosing, disseminating or using this message or any information contained herein (including any reliance thereon) is strictly prohibited. If you have received this message in error, please contact the sender immediately and destroy the message (including any attachments) and any copies in their entirety, whether in electronic or hard copy format. Nothing contained in this e-mail shall be considered a legally binding agreement, amendment or modification of any agreement with Island Capital Group LLC or any of its affiliates, each of which requires a fully executed agreement to be received by Island Capital Group LLC or such affiliate. EFTA00963920