NEW SETTLEMENT COMMUNITY CAMPUS CORP

THE ORGANIZATION WAS FORMED TO DEVELOP AND BUILD A STATE OF THE ART COMMUNITY CENTER WITH SWIMMING POOL IN THE MT EDEN SECTION OF THE BRONX, NY. THE LAND AND BUILDING CONTAINING THE FACILITY ARE LEASED FROM NEW YORK CITY SCHOOL CONSTRUCTION AUTHORITY AT NO RENT FOR 50 YEARS WITH OPTIONS FOR AN ADDITIONAL 25 YEARS. THE SWIMMING POOL IS LEASED TO A RELATED PARTY AFFILIATE, THE CRENULATED COMPANY, LTD , WHO MANAGES AND OPERATES THE SWIMMING POOL OPERATIONS. THE ORGANIZATION HAS LEASED A PORTION OF THE BUILDING BACK TO THE NEW YORK CITY SCHOOL CONSTRUCTION AUTHORITY FOR A PERIOD COINCIDING WITH THE ABOVE LEASE. RENT FOR THE PREMISES IS BASED ON CERTAIN OPERATING COST REIMBURSEMENTS AND IS ADJUSTED ANNUALLY. THE ORGANIZATION PROVIDES SOCIAL, RECREATIONAL, EDUCATIONAL AND CULTURAL ACTIVITIES, EVENTS AND AFTER-SCHOOL PROGRAMS IN THE COMMUNITY CENTER TO BENEFIT THE SCHOOL AND THE SURROUNDING COMMUNITY. IT HAS ENTERED INTO A LEASE OF ITS FACILITIES TO THE NYC DEPARTMENT OF EDUCATION.