Contract analysis

I. EXECUTIVE SUMMARY This memorandum sets forth the results of our review of the existing insurance program currently maintained by Meridian Gateway Holdings LLC ("Seller" or "Meridian") on the mixed-use commercial property located at 450 West 34th Street, New York, New York 10001 (the "Property"), in connection with the prospective acquisition of the Property by our client, Briarwood Family Office LLC ("Briarwood" o

II. THE PROPERTY — OVERVIEW FOR INSURANCE PURPOSES For purposes of this insurance review, the following description of the Property has been assembled from the due diligence materials received to date, including Seller's offering memorandum, the preliminary title report, the existing rent roll, and the building information provided by Atlas Urban Management Corp., the current property manager. Address: 450 West 34th

III. EXISTING INSURANCE PROGRAM — SUMMARY OF CURRENT POLICIES Set forth below is a summary of the existing insurance policies currently maintained by Meridian on the Property, based on the limited documentation made available to date. As noted in Section IX below, we have requested complete copies of all current policies from Seller's counsel, Hargrove, Pettigrew & Sloane LLP (Rebecca Tran), as part of the preliminar

IV. REVIEW OF LEASE INSURANCE REQUIREMENTS The commercial leases at the Property impose insurance obligations on tenants that are relevant to the Property's overall insurance profile. Properly structured tenant insurance requirements serve as a first line of defense against claims arising from tenant operations, reducing the landlord's direct exposure and supporting the landlord's ability to obtain favorable insuranc

V. PROSPECTIVE LENDER INSURANCE REQUIREMENTS — PINNACLE FEDERAL SAVINGS BANK Context. BFO is in discussions with Pinnacle Federal Savings Bank ("Pinnacle") regarding senior acquisition financing of up to $78,000,000, representing a loan-to-value ratio of approximately 65% based on the $120,000,000 purchase price. The principal contact at Pinnacle for this engagement is Daniel Ortega, Senior Vice President, Commercial

VI. PREFERRED EQUITY PROVIDER — CALIBER POINT CAPITAL PARTNERS LP BFO is in preliminary discussions with Caliber Point Capital Partners LP ("Caliber Point") regarding the possible provision of up to $18,000,000 in preferred equity for the acquisition. The principal contact at Caliber Point is Priya Sundaram, Managing Director, located at 590 Madison Avenue, Suite 3100, New York, New York 10022. The indicative preferr

VII. POST-ACQUISITION INSURANCE PROGRAM — RECOMMENDATIONS Set forth below are our recommendations for the post-acquisition insurance program to be placed by BFO effective as of the closing date. These recommendations have been developed in coordination with Lockhart & Pryor Insurance Advisors LLC and are designed to address the anticipated requirements of Pinnacle Federal Savings Bank, BFO's internal risk management

VIII. ESTIMATED POST-ACQUISITION INSURANCE COSTS Based on the analysis set forth above and the preliminary estimates provided by Lockhart & Pryor Insurance Advisors LLC, the estimated annual cost of the post-acquisition insurance program is as follows: The estimated increase of $38,000 to $88,000 per year is driven primarily by the following factors: • Higher umbrella/excess liability limits: Increasing the umbrella

IX. DUE DILIGENCE ACTION ITEMS The following action items should be completed in connection with the insurance due diligence for the acquisition:

1. Obtain Complete Policy Documentation: Obtain complete copies of all current insurance policies maintained by Meridian on the Property, including all endorsements, schedules of values, and policy amendments. This request has been included in the preliminary due diligence request list delivered to Seller's counsel, Hargrove, Pettigrew & Sloane LLP (Rebecca Tran). Follow up should occur promptly if documents are not

2. Obtain Five-Year Loss/Claims History: Request a five-year loss run and claims history for the Property from Seller's insurance carriers. The loss history will reveal any patterns of claims (e.g., recurring water damage, slip-and-fall incidents) that may affect insurability or premium levels for the post-acquisition program.

3. Confirm FEMA Flood Zone Determination: Obtain a current FEMA flood zone determination certificate (Standard Flood Hazard Determination Form) for 450 West 34th Street, Block 754, Lot 42, to confirm whether the Property is located within Zone X, Zone AE, or another designated flood zone. This determination will dictate the scope and cost of required flood coverage.

4. Obtain Tenant Certificates of Insurance: Request current certificates of insurance from all major commercial tenants—specifically Harmon & Voss Retail Partners LLC, Solstice Wellness Studio Inc., Ridgepoint Consulting Group LLC, and Calderon Specialty Insurance Digital Media Corp.—through Atlas Urban Management Corp. (Gerald Fitch, Senior Property Manager). Each certificate should be reviewed for compliance with t

5. Coordinate Post-Acquisition Insurance Marketing: Coordinate with Lockhart & Pryor Insurance Advisors LLC (Nadia Kowalski) to initiate the formal marketing process for the post-acquisition insurance program. This process should begin sufficiently in advance of the anticipated closing date to ensure that binding quotes are available and policies can be bound effective as of closing.

6. Confirm Pinnacle Insurance Requirements: Upon receipt of Pinnacle Federal Savings Bank's formal loan term sheet, review the insurance requirements section in detail and coordinate with Daniel Ortega to confirm the specific requirements, including required coverage types, limits, deductible maximums, carrier rating requirements, and endorsement specifications. Any requirements that differ from or exceed the paramet

7. Review Replacement Cost Appraisal: Upon receipt of the appraisal from Kensington Valuation Group Inc. (Robert Huang, MAI), review the replacement cost determination and coordinate with Lockhart & Pryor to confirm that the insured replacement cost under the post-acquisition property policy is consistent with the appraised replacement cost.

8. Evaluate Portfolio Umbrella Program: Confirm with BFO's internal risk management team whether BFO's existing portfolio insurance program can be extended to include the Property for umbrella/excess liability coverage, and whether doing so would result in premium savings compared to procuring a standalone umbrella policy for the Property.

X. PSA INSURANCE PROVISIONS — RECOMMENDATIONS In connection with the negotiation of the Purchase and Sale Agreement ("PSA") for the acquisition, we recommend that the following insurance-related provisions be addressed: Seller's Obligation to Maintain Coverage Through Closing: The PSA should require Seller to maintain its existing insurance coverage