TABLE OF CONTENTS PART I Page SPECIAL RISKS TO BE CONSIDERED BY PURCHASERS ............................vii 1. Riverside South and Riverside South Property Owners Association .............vii 2. Use Provisions ......................................................viii 3. Interim Service Period ................................................ .ix 4. Purchaser Deposits; Defaults by Purchasers .................................x 5. No Financing Contingency .............................................xi 6. Control by Sponsor; First Annual Tower Meeting ............................xi 7. Delay in Collection of Common Charges .................................xiv 8. Condominium Board .................................................xiv 9. Additional Building Work ..............................................xv 10. Rental Unit; Rental Apartments; Rent Stabilization; Inclusionary Housing ......xvii 11. Partial Exemption from Real Estate Taxes ...............................xviii 12. Recreational Facility ................................................xviii 13. Shared Facilities Declaration ...........................................xx 14. Resident Manager's Unit ..............................................xxi 15. Riverside Boulevard and 61 st Street .....................................xxii 16. Riverside South Park Areas ...........................................xxiii 17. 62nd Street Public Access Area .........................................xxiii 18. Miller Highway (alk/a West Side Highway) ..............................xxiv 19. 59th Street Generating Station ..........................................xxv 20. Conveyance and Development of Parcel K-2 ..............................xxv 21. Prohibition Against Advertising ........................................xxv 22. No Bond or Other Security ...........................................xxvi 23. Sponsor's Right to Lease Unsold Tower Units ............................xxvi 24. Changes in the Commercial Units ......................................xxvi 25. Transfer Taxes; Mansion Taxes; Closing Costs ............................xxvi 26. No Reserve Fund/Working Capital Fund ................................xxvii 27. Real Estate Taxes ..................................................xxvii 28. Closing Fees and Costs .............................................xxviii 29. No Warranty .......................................................xxix 30. Insurance .........................................................xxix 31. Waiver of Diplomatic or Sovereign Immunity ............................xxix 32. Certificate of Occupancy .............................................xxx 33. Terraces and Swimming Pools .........................................xxx 34. Lot Line Windows ..................................................xxxi 35. Views from Tower Units .............................................xxxii 36. Flood Zone .......................................................xxxii 37. Increase or Decrease in Comtnon Interest ...............................xxxii 38. Window Washing and Window Treatments ..............................xxxiii 39. Additional Units, Storage Closets .....................................xxxiii 40. Sponsor's Use of the Building for Promotional Functions ..................xxxiv 41. Method for Measuring Units .........................................xxxiv 42. Reservation of Air/Development Rights ................................xxxiv 43. Parking ..........................................................xxxv 44. Interstate Land Sales Full Disclosure Act ................................xxxv 45. Special Allocation of Certain Common Expenses .........................xxxvi 46. Windows Feature Childproof Stops ...................................xxxvii 4 7. Restriction on Hanging Electronic Equipment ...........................xxxvii 48. Model Tower Unit .................................................xxxvii 49. Wood Floors .....................................................xxxvii 50. Distinctive Sidewalk Improvements ...................................xxxvii 51. Security ........................................................xxxviii 52. Condominium Management Association ...............................xxxviii 53. Certification by Sponsor and Sponsor's Principal ........................xxxviii A. INTRODUCTION ..............................................................1 1. The Property .........................................................2 2. Riv·erside South .......................................................5 3. Riverside South Property Owners Association ...............................7 4. Recreational Facility and Shared Facilities Operating Agreement ................8 5. Features of Condominium Ownership .....................................9 6. Offering of Tower Units for Sale ....................................... .13 7. Offering of Storage Licenses ...........................................14 8. Units N·ot Offered For Sale Hereunder ................................... .15 9. Certain Definitions .................................................. .15 B. DESCRIPTION OF THE PROPERTY AND IMPROVEMENTS ........................22 1. The Building ........................................................22 2. Tower Units .........................................................25 3. Commercial Units ................................................... .27 4. Storage Closets ......................................................28 5. Terraces and Swimming Pools ..........................................29 6. Common Elements ...................................................30 7. Available Services and Facilities ....................................... .32 C. LOCATION AND AREA INFORMATION ........................................ .39 1. Location and Services ................................................ .39 2. Streets .............................................................40 3. Zoning .............................................................41 D. SCHEDULES AND NOTES SCHED.ULE A ............................................................43 NOTES TO SCHEDULE A ................................................. .56 SCHEDULE B ............................................................63 NOTES TO SCHEDULE B ..................................................64 SCHEDULE B-1 ...........................................................72 E. COMPLIANCE WITH REAL PROPERTY LAW SECTION 339(i) ......................73 F. COMMERCIAL UNITS .........................................................74 G. CHANGES IN PRICES AND UNITS: TOWER UNITS AND STORAGE LICENSES .......77 H. INTERIM LEASES ............................................................79 I. PROCEDURE TO PURCHASE ...................................................81 1. Execution of Documents ...............................................81 ii 2. Deposits/Escrow .....................................................82 3. Date of the First Closing ...............................................86 4. Default .............................................................87 5. Risk of Loss ........................................................88 6. Financing ...........................................................89 7. Transfer (and Mansion) Taxes ..........................................89 8. Foreign Missions; Required Notification and Waiver of Diplomatic or Sovereign Immunity ................................................90 9. Notice of Effectiveness ................................................90 10. Cotnpliance with Interstate Land Sales Full Disclosure Act ...................90 J. ASSIGNMENT OF AGREEMENTS ...............................................91 K. EFFECTIVE DATE ............................................................92 L. TERMS OF SALE .............................................................94 1. Prerequisites to Closing of Title .........................................94 2. Closing of Title; Payment of Balance of Purchase Price ......................94 3. Tax Returns, Unit Owner Power of Attorney ...............................95 4. Tax-Deferred Exchanges ...............................................95 5. Risk of Loss ........................................................96 M. UNIT CLOSING COSTS AND ADJUSTMENTS ....................................97 N. RIGHTS AN'D OBLIGATIONS OF SPONSOR .................................... .103 1. Sponsor's Obligations ............................................... .103 0. CONTROL BY SPONSOR .....................................................114 P.THETOWERBOARD .........................................................118 1. Ge11eral ...........................................................118 2. Powers and Duties of and Determinations by the Tower Board ................120 3. Meetings and Votes of Tower Unit Owners .............................. .120 4. Officers ...........................................................120 5. Designation of Members to the Condominium Board ....................... 121 Q. THE CONDOMINIUM BOARD ............................................... .122 1 . General ...........................................................122 2. Powers and Duties of and Determinations by the Condominium Board ........ .123 3. Meetings and Votes of Unit Owners .....................................124 4. Officers ...........................................................124 5. Liability of Condominium Board and Unit Owners .........................125 R. RIGHTS AND OBLIGATIONS OF THE UNIT OWNERS AND THE BOARDS OF MANAGERS .........................................................126