Exhibit 10.1


SALE
AGREEMENT


 


(Township
9 Assets)


 


DATED
AS OF June 15, 2018


 


by
and among


 


T-9
Developers, LLC


a
Delaware Limited Liability Company


 


First
Capital Real Estate Operating Partnership, LP,


a
Delaware limited partnership


 


First
Capital Real Estate Trust Incorporated,


A
Maryland corporation, Its General Partner


 


and


 


GADSDEN
GROWTH PROPERTIES, INC., a Maryland corporation


 


and


 


GADSDEN
GROWTH PROPERTIES, L.P., a Delaware limited partnership


 


As
Supplemented by the letter agreement dated as of July 10, 2018


 




     


     


    

 

TABLE OF CONTENTS


 





	 	 	 	Page
	I.	THE SALE	 	3
	 	Section 1.01	Sale of the Subject Property	3
	 	Section 1.02	Consideration by the REIT	3
	 	Section 1.03	Charter Documents	7
	 	Section 1.04	Directors and Officers	7
	 	Section 1.05	Release of Claims	7
	II.	CONDITIONS PRECEDENT	7
	 	Section 2.01	Conditions Precedent	7
	 	Section 2.02	Conditions in Favor of the REIT	8
	 	Section 2.03	Conditions in Favor of the Sellers	8
	III.	CLOSING	 	9
	 	Section 3.01	Closing	9
	 	Section 3.02	Closing Deliveries	9
	IV.	REPRESENTATIONS AND WARRANTIES	10
	 	Section 4.01	Representations and Warranties of the Seller Parties	10
	 	Section 4.02	Representations and Warranties of the REIT and the OPCO	17
	V.	COVENANTS	22
	 	Section 5.01	Covenants of Seller Parties	22
	 	Section 5.02	Covenants of REIT and OPCO	24
	 	Section 5.03	Indemnity and Escrow	25
	 	Section 5.04	Standstill	30
	 	Section 5.05	Waiver of Attorney Client Privilege	31
	VI.	CONDITIONS; ABANDONMENT AND TERMINATION	31


 






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	 	Section 6.01	Rights of the REIT	31
	 	Section 6.02	Rights of the Seller Parties	32
	 	Section 6.03	Effect of Abandonment	33
	VII.	MISCELLANEOUS	33
	 	Section 7.01	Further Actions	33
	 	Section 7.02	Notices	33
	 	Section 7.03	Availability of Equitable Remedies	33
	 	Section 7.04	Modification	33
	 	Section 7.05	Waiver	34
	 	Section 7.06	Binding Effect	34
	 	Section 7.07	No Third-Party Beneficiaries	34
	 	Section 7.08	Headings	34
	 	Section 7.09	Governing Law	34
	 	Section 7.10	WAIVER OF JURY TRIAL	35
	 	Section 7.11	Execution	35
	 	Section 7.12	Severability	35
	 	Section 7.13	Certain Defined Terms	35


 


	Annex A	Defined Terms
	 	 
	Exhibit I	Subject Property Debt




 






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SALE
AGREEMENT, dated as of June 15, 2018 As supplemented by the letter agreement dated as of July 10, 2018 (collectively, this
“Agreement”), by and among the following Persons:


 


		1.	T-9
                                         Developers, LLC, a Delaware limited liability Company (“T-9 Developers”);



 


		2.	First
                                         Capital Real Estate Operating Partnership, LP, a Delaware limited partnership (“FC
                                         OPCO” and, together with T-9 Developers, each a “Seller”
                                         and, collectively, the “Sellers”);



 


		3.	First
                                         Capital Real Estate Trust Incorporated, a Maryland corporation (“FCRETI”
                                         and, together with the Sellers, each, a “Seller Party” and, collectively,
                                         the “Seller Parties”);



 


		4.	GADSDEN
                                         GROWTH PROPERTIES, INC., a Maryland corporation (the “REIT”),
                                         and



 


		5.	GADSDEN
                                         GROWTH PROPERTIES, L.P., a Delaware limited partnership (“OPCO”).



 


WHEREAS,
the REIT desires to acquire the direct or indirect interests in certain real property and related assets and interests, including
the Subject Property described below;


 


WHEREAS,
the REIT intends (and will proceed using commercially reasonable efforts) to file a registration statement on Form S-4 (the “Registration
Statement”) under the Securities Act of 1933, as amended (the “Securities Act”), with the Securities
and Exchange Commission (the “SEC”) and list its shares on the OTC Markets such as the OTCQB market so that
its shares of common stock, par value $0.01 (“Common Stock”), are eligible for listing and listed and traded
on such market or effect another transaction so that its shares of Common Stock (or shares received in connection with a merger)
are so listed;


 


WHEREAS,
the REIT may in lieu of filing the Registration Statement file a Form 10 Registration Statement (“Exchange Act Filing”)
under the Securities and Exchange Act of 1934, as amended (the “Exchange Act”) and then list its shares of
Common Stock on the OTC Markets such as the OTCQB;


 


Subject
Property


 


WHEREAS
the rights, benefits and interests of the Seller relative to the real property and related assets and interests (collectively,
the “Subject Property”) to be transferred by the Sellers pursuant to the Agreement consists of the following:


 






     


     


    

 


		1.	The
                                         following real property and improvements: fee simple interests generally consisting of
                                         those 23 parcels of land, with additional description listed in the Preliminary Report,
                                         and all improvements thereon, the land comprising approximately 62.6 gross acres and
                                         approximately 29.87 net developable acres (net of the sale of 1.8 acres and roadways,
                                         parks and open space, and land situated within the American River) and known as Lots
                                         1, 2, 3, 5, 6 and 7, Lots A and B, and designated remainder 1 and designated remainder
                                         2, as shown on the map entitled “Township 9 Phase 1, Subdivision No. P10_036”,
                                         filed for record November 13, 2012 in Book 378 of Final Maps, Page 1, Sacramento County
                                         Records and designated as Assessor’s Parcel Numbers 001¬0020-056, 001-0020—057,
                                         001-0020-058, 001-0020-060, 001-0020-061, 001-0020-062, 001¬0020-063, 001-0020-064,
                                         001-0020-066 and 001-0020-067 in the City of Sacramento, California and collectively
                                         referred to as the “Township Nine” project and inclusive of the Fee Credits
                                         such property and related assets and rights being collectively referred to herein as
                                         the “Underlying Property”;



 


		2.	The
                                         limited liability company interests in Township Nine Owner, LLC, a Delaware limited liability
                                         company (the “Sold Entity”);



 


		3.	The
                                         rights of Sold Entity to Capital Station Holdings, LLC, a Delaware limited liability
                                         company (“Capital Station Holdings”), Capital Station Member, LLC,
                                         a Delaware limited liability company (“Capital Station Member”), and
                                         Capital Station 65, LLC, a Delaware limited liability company (“Capital Station”,
                                         and together with Capital Station Holdings, and Capital Station Member, each, a “Sold
                                         Entity Subsidiary”).



 


In
addition, the Subject Property is subject to certain other loans, advances or payment obligations (collectively, the “Subject
Property Debt”) as summarized in Exhibit I to this Agreement, including the Secured Super-Priority Post-Petition
Credit Agreement (the “DIP Credit Agreement”) between Capitol Station, as debtor, and SIM T9 Investors, LLC,
assignee of Serene Investment Management, LLC as lender (the “DIP Lender”), which aggregate amount of the Subject
Property Debt as of the Closing Date shall not be more than $54,536,430 plus $15,007.57 per diem from and after May 1, 2018 (the
“Expected Mortgage Amount”) or such larger amount as approved by the REIT (the “Maximum Seller Mortgage
Amount”);


 


Consideration
to by paid by REIT


 


WHEREAS,
the consideration for the purchase of the Sold Entity and the interests of the Sold Entity in the Subject Property is the number
and classes of shares described in Section 1.02(b) (the “Transaction Shares”);


 


Ownership
of the Sold Entity and its Subsidiaries 


 


WHEREAS,
the Sold Entity is currently owned, directly, by FC OPCO and T-9 Developers;


 






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Ownership
of certain Gadsden Entities


 


WHEREAS,
Gadsden Realty Investments I, LLC, a Delaware limited liability company (“Gadsden Realty Investments”), is
wholly-owned by Gadsden Investments Holdings LLC, a Delaware limited liability company (“Gadsden Holdings”),
and is treated as a disregarded entity for income tax purposes;


 


WHEREAS,
Gadsden Holdings is wholly-owned by OPCO and is treated as a disregarded entity for income tax purposes;


 


Capitalized
Terms 


 


WHEREAS,
certain capitalized terms that are used in this Agreement shall have the respective meanings ascribed to them as set forth in
Annex A attached hereto.


 


		I.	THE
                                         SALE



 


Section
1.01     Sale of the Subject Property.


 


(a)          Sold
Interests. On the Closing Date, each Seller shall sell, convey, transfer and assign (the “Sale”) all rights
in, to and under the Sold Entity, including without limitation, all rights in, to and under the limited liability company interests
(collectively, the “Sold Interests”) in the Sold Entity, owned or held or permitted to acquire by such Seller,
in each case, to Gadsden Realty Investments, in exchange for the Transaction Shares to be issued to such Seller.


 


(b)          Liens.


 


(i)          Subject
to the provisions of Section 1.01(b)(ii), the sale, conveyance, transfer and assignment of the Sold Interests shall be free and
clear of all pledges, claims, liens, liabilities, charges, preferences, priorities, restrictions, encumbrances and security interests,
in each case, of any kind or nature whatsoever (collectively, “Liens”);


 


(ii)          The
Sold Interests are currently subject to the Liens listed on Schedule 1.01(b) (the “Subject Liens”). The Sold
Interests will be purchased at the Closing subject to the Subject Liens.


 


Section
1.02     Consideration by the REIT.


 


(a)          Stock
Consideration. The aggregate consideration or purchase price payable by OPCO for the contributions or other conveyance, transfer
and assignments of the Sold Interests is an amount the parties agree is equal to $33,463,570.00, subject to adjustments including
the adjustments set below in Section 1.02(b)(ii) and Section 1.02(b)(iii) (the “Purchase Price”). Such consideration
shall be paid by the REIT issuing and delivering the Transaction Shares, which shall be shares of its 7% Series A Cumulative Convertible
Perpetual Preferred Stock (“Series A Stock”), Series B Non-Voting Convertible Preferred Stock, par value $0.01
per share (“Series B Stock”), and Common Stock to the Sellers or their designee as directed by a payment direction
letter delivered by the applicable Seller to the REIT, which consideration shall be subject to reduction as contemplated by this
Agreement.


 






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(b)          Computation
of the Number of Transaction Shares. For the purposes of this Agreement, the Transaction Shares shall be the following:


 


(i)          The
following shares of capital stock of the REIT, subject to adjustment as provided in Section 1.02(b)(ii):


 


(A)          200,000
shares of the Series A Stock;


 


(B)          2,241,357
shares of the Series B Stock; and


 


(C)          605,000
shares of the Common Stock.


 


(ii)          The
stock that is to be issued by the REIT under Section 1.02(b)(i) shall be subject to the following adjustments:


 


(A)          The
sum of the following:


 


(1)          Decreased
by the net amount of the customary pro rations as determined by the REIT for the increase in the obligations, including the liabilities
or claims of Sold Entity or any of the Sold Entity Subsidiaries that is greater than such amount as of May 1, 2018, including
increased obligations under the DIP Credit Agreement from the balance thereof as of May 1, 2018 including per diem interest of
$15,010 per day from and including May 1, 2018 to the Closing Date; and


 


(2)          Decreased
by the amount, without duplication of the foregoing, of the amount of the Subject Property Debt as of the Closing Date, as reasonably
determined by the REIT that is in excess of the Maximum Seller Mortgage Amount; and


 


(3)          Decreased
by the amount of transfer taxes that are required to be paid by Buyer or its Affiliates; and


 


(4)          Increased
by the amount of obligations under the DIP Credit Agreement as of the Closing that are less than the Expected Mortgage Amount
because the additional default interest is not allowed in the Bankruptcy Case.


 


(5)          The
reduction of the Transaction Shares under this Section 1.02(b)(ii) will be made pro rata on the basis of the deemed value (as
provided under Section 1.02(b)(iii)(C)(1)) of the shares of Common Stock, Series A Stock and Series B Stock to be issued under
Section 1.02(b)(i).


 


(iii)          Limitation
of the aggregate Purchase Price.


 


(A)          The
aggregate Purchase Price payable by the REIT will be limited as the provided in this Section 1.02(b)(iii). In addition to the
adjustments provided in Section 1.02(b)(ii), the Transaction Shares that is to be issued by the REIT under Section 1.02(b)(i)
shall be subject to the adjustments set forth in this Section 1.02(b)(iii).


 






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(B)          The
parties acknowledge that the assets of Capital Station may be sold in a transaction (a “363 Sale”) authorized
under 11 U.S.C. 363 of the U.S. Bankruptcy Code (11 U.S.C. § 101 et seq., the “Bankruptcy Code”) and that
the net proceeds payable on account of the Sold Interests may be less than the Purchase Price. Subject to the provisions of Section
1.02(b)(iii)(D), the Purchase Price payable in the Transaction Shares is limited to 97% of the net cash proceeds payable on account
of the Sold Interests after the Underlying Property is sold in a 363 Sale that is authorized by the Bankruptcy Court in the Bankruptcy
Case.


 


(C)          Any
reduction of the Transaction Shares to be issued under Section 1.02(b)(i) shall be as follows


 


(1)          First,
reduce the number of shares of Series B Stock to be issued under Section 1.02(b) until the number of shares of Series B Stock
that would otherwise be issued under Section 1.02(b) is reduced to zero;


 


(2)          Then,
reduce the number of shares of Common Stock to be issued under Section 1.02(b) up to 500,000 shares of Common Stock;


 


(3)          Then,
as determined by the REIT:


 


(I)          reduce
the number of shares of Series A Stock to be issued under Section 1.02(b) until the number of shares of Series A Stock that would
otherwise be issued under Section 1.02(b) is reduced to zero; and / or


 


(II)          reduce
the remaining (105,000) shares of Common Stock to be issued under Section 1.02(b) up to 105,000.


 


(D)          Notwithstanding
any other provision of this Section 1.02(b)(iii) to the contrary, the aggregate Purchase Price after giving effect to the foregoing
provisions of this Section 1.02(b)(iii) shall not be less the amount that is payable to the holders of the Sold Interests in a
363 Sale if the Underlying Property was sold in such 363 Sale for net cash proceeds equal to $75,000,000.


 


(iv)          With
respect to any reduction of the number of the Transaction Shares under Section 1.02(b)(ii) or Section 1.02(b)(iii) or Section
5.03(b)(vii), the deemed value of the Transaction Shares shall be as follows:


 


(1)          The
shares of Common Stock and shares of Series B Stock will have a deemed value of $10.00 per share.


 


(2)          The
shares of Series A Stock will have a deemed value of $25.00 per share.


 


(v)          The
Transaction Shares shall be issued as of the Closing and held in the Escrow Account in accordance with Section 5.03(c).


 






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(c)          Pro
Rata Issuance of Transaction Shares. Subject to the provisions of Section 1.02(d), the Transaction Shares shall be issued
(and held in the Escrow Account under the terms of the Escrow Agreement and the provisions of Section 5.03) at the Closing on
a pro rata basis to T-9 Developers and FC OPCO, on the basis of their ownership of the Sold Entity, subject to any assignment
of the rights and other adjustments by any such Person to any other Person in form reasonably acceptable to the REIT, including
that the Person receiving such Transaction Shares agree to be jointly and severally liable with the Seller Parties under Section
5.03, and subject to reduction and adjustment as provided in Section 1.02(b)(iii), on a non-recourse basis to the extent of the
Transaction Shares (or the deemed value thereof) that are received by such Person. As a condition for to any transfer or assignment
of the Transaction Shares from a Seller to any Person (and any subsequent transfer and assignment) that, in either event, is for
a class of Transaction Shares that are then subject to the provisions of the Escrow Agreement and held in the Escrow Account,
the transferee or assignee shall become a party to the Escrow Agreement and agree to the terms and conditions of the Escrow Agreement
in a document in form and substance reasonably acceptable to the REIT. The parties agree that after giving effect to such assignment
of rights and other adjustments, the Transaction Shares will be issued and delivered as provided in Schedule 1.02.


 


(d)          Series
B Stock. The Series B Stock and the Common Stock that will be issued upon the conversion of the Series B Stock will be held
in the Escrow Account and subject to the terms of the Escrow Agreement and the provisions of Section 5.03.


 


(e)          Additional
Consideration.


 


(i)           In
addition to the shares of the Transaction Shares (Series A Stock, Series B Stock and Common Stock) to be issued as provided in
this Agreement, the REIT shall issue Series B Stock in the amount of up to $10,000,000 (based upon a deemed value of $10.00 per
share, or 1,000,000 shares) to SRS, LLC, as designee of the Sellers, for such consideration (the “Earn-Out Payment”)
based upon the terms and conditions set forth in this Section 1.02(e).


 


(ii)          The
disbursement of the Earn-Out Payment shall be subject to the adjustment provided under Section 1.02(b)(ii)(A), on a pro rata basis
with the Transaction Shares (on the basis of the deemed value of the Transaction Shares and the Earn-Out Payment) and will not
be paid if the limitation set forth in Section 1.02(b)(iii) is applicable.


 


(iii)         The
first $5,000,000 of the Earn-Out Payment (“First Earn-Out Payment”) shall be due and payable upon the approval
by the City of Sacramento of the improvement plans and final subdivision map;


 


(iv)         The
second $5,000,000 of the Earn-Out Payment (“Second Earn-Out Payment”) shall be due and payable subject to the
following additional terms and conditions:


 


(A)          The
Second Earn-Out Payment shall be of no further force or effect in the event that the Property is sold in connection with a sale
under 11 U.S.C. 363 in connection with the Bankruptcy Case;


 


(B)          The
amount of the Second Earn-Out Payment shall be allocated pro rata (based upon gross acreage) among all of the parcels constituting
the Property (including, without limitation, the parcels currently under contract for sale to Anthem Properties, subject to assignment
to Evergreen Communities (“Anthem/Evergreen Parcels”);


 






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(1)          With
respect to the Anthem/Evergreen Parcels, the Second Earn-Out Payment allocable to the Anthem/Evergreen Parcels will be paid upon
the earlier to occur of: (x) the closing of the purchase of the Anthem/Evergreen Parcels under the agreement current in place;
(y) commencement of construction of buildings as evidenced by completion of foundations for the buildings on the Anthem/Evergreen
Parcels;


 


(2)          With
respect to all other parcels in the Property, the Second Earn-Out Payment allocable to each parcel will be paid upon the earlier
to occur of (x) the sale of such subject parcel; (y)


 


(3)          commencement
of construction of buildings as evidenced by completion of foundations by the REIT or any Affiliate of the REIT that is controlled
by the REIT.


 


Section
1.03     Charter Documents. As of the Closing Date:


 


(a)          OPCO
Partnership Agreement. The limited partnership agreement of OPCO (the “Partnership Agreement”) shall be
substantially in the form as previously provided to the Sellers.


 


(b)          Disregarded
Entities. Each of Gadsden Holdings and Gadsden Realty Investments shall at all times be wholly owned subsidiaries (direct
or indirect) of OPCO and treated as disregarded entities for income tax purposes.


 


Section
1.04     Directors and Officers. The directors and officers of the REIT and its subsidiaries as of the Closing Date
shall be such individuals as designated by the REIT.


 


Section
1.05     Release of Claims. Each Seller, for itself and on behalf of each of its Affiliates, hereby releases and discharges
the Sold Entity and each Sold Entity Subsidiary from and against each claim that such Seller or any of its Affiliates has against
the Sold Entity or any Sold Entity Subsidiary, including all payables by the Sold Entity or any Sold Entity Subsidiary and each
claim any Seller or any of their Affiliates that have been made in the Bankruptcy Case and including the payables by Capital Station
listed on Schedule 1.05.


 


		II.	CONDITIONS
                                         PRECEDENT



 


Section
2.01     Conditions Precedent. The respective obligations of each party to effect the transactions described in ARTICLE I
and the other transactions contemplated by this Agreement shall be subject to the satisfaction at or prior to the Closing Date
of the following conditions, any or all of which may be waived, in whole or in part by the mutual consent of Sellers and the REIT:


 


(a)          Consents.
The parties have received all consents necessary to effectuate the transactions contemplated by this Agreement including, without
limitation, the following:


 






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(i)          The
consent of each of T-9 Developers, FC OPCO and FCRETI to take such actions to consummate the transactions contemplated by Article
I and the other transactions contemplated by this Agreement, including any consents required by the members or shareholders in
any such Person; and


 


(ii)          The
consent of the REIT for it, and OPCO and its subsidiaries, to take such actions to consummate the transactions contemplated by
Article I and the other transactions contemplated by this Agreement.


 


Section
2.02     Conditions in Favor of the REIT. The respective obligations of the REIT to effect the transactions described
in ARTICLE I and the other transactions contemplated by this Agreement shall be subject to the satisfaction at or prior to
the Closing Date of the following conditions, any or all of which may be waived, in whole or in part by the REIT:


 


(a)          Liens
Affecting Subject Property.


 


(i)          The
Underlying Property shall not be subject to any Liens other than the Liens related to the Subject Property Debt, customary title
encumbrances that do not decrease the estimated fair value of the Underlying Property as of the date of this Agreement by more
than $20,000 or other Liens exceptions and exclusions described in the Preliminary Report issued on April 25, 2018 Old Republic
National Title Insurance Company (Madison Title Agency LP) (“Title Company”) such report (“Preliminary
Report”) or other Liens other than for such matters that are described in Schedule 2.02 which references specific
matters in the record in the bankruptcy case of the Sold Entity and the Sold Entity Subsidiaries, as debtors, in the United States
Bankruptcy Court for the Eastern District of California (the “Bankruptcy Court”) (Case No. 17-23627) (the “Bankruptcy
Case”);


 


(ii)          The
Sold Interests shall not be subject to any Liens other than the Subject Liens;


 


(b)          Materiality.
The amount of the liabilities and obligations with respect to the Subject Property, including entity level payables, liabilities,
or assumed obligations, and claims in the Bankruptcy Case shall be not more than $15,000 or such greater amount that is acceptable
to the REIT;


 


(c)          Operating
Expenses. There shall not have been any material adverse change with respect to the Underlying Property, including any additional
claims in the Bankruptcy Case or any events that are expected to materially change the operating expenses of the Underlying Property;
and


 


(d)          No
Breach of Representation or Warranty. There shall be no material breach of any representation or warranty of the Seller Parties
set forth in this Agreement.


 


Section
2.03     Conditions in Favor of the Sellers. The obligations of the Sellers to effect the transactions described in
ARTICLE I and the other transactions contemplated by this Agreement shall be subject to the satisfaction at or prior to the
Closing Date of the following conditions, any or all of which may be waived, in whole or in part by any of the Sellers:


 






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(a)          Issuance
of Transaction Shares. The REIT shall have authorized the issuance of the Transaction Shares and delivered the Transaction
Shares as provided in Article III; and


 


(b)          No
Breach of Representation or Warranty. There shall be no material breach of any representation or warranty of REIT or OPCO
set forth in this Agreement.


 


		III.	CLOSING



 


Section
3.01     Closing. The closing of the Sale and the other transactions described in Section 1.01 and the issuance of the
Transaction Shares effective on the Closing Date described in Section 1.02 (the “Closing”) shall take place
as promptly as practicable on or after the date of this Agreement unless this Agreement has been theretofore terminated pursuant
to its terms or unless another time or date is agreed to in writing by the parties hereto (the date and time of the Closing being
referred to in this Agreement as the “Closing Date”). The Closing shall be held at the offices of Herrick,
Feinstein LLP, 2 Park Avenue, New York, NY 10016, unless another place is agreed to in writing by the parties hereto. For the
avoidance of doubt, there is no obligation that any representative of any Seller be physically present at the Closing and, rather,
such parties, through their authorized representatives, may participate in the Closing remotely.


 


Section
3.02     Closing Deliveries. As soon as practicable on the Closing Date, the parties hereto shall cause the transactions
described in Article I to be consummated by the following:


 


(a)          Deliveries
by the Seller Parties. The Seller Parties shall deliver to Gadsden Realty Investments, the following:


 


(i)          An
assignment of the Sold Interests in form acceptable to the REIT, which shall constitute 100% of the equity interests in the Sold
Entity;


 


(ii)          A
true and complete copy of all material documents and materials as well as all material correspondence and books and records in
the possession or control of any Seller with respect to the Bankruptcy Case and the Underlying Property that has been on or prior
to the Closing Date reasonably requested by the REIT, including without limitation the following:


 


(A)          All
general and subsidiary ledgers and other financial books of account; all financial statements, all vender lists and accounts payables,
all material contracts relating to the Subject Property.


 


(B)          All
records regarding the Bankruptcy Case including drafts of agreement and plans;


 


(C)          All
architectural and development plans, including the CAD files; and


 


(D)          A
statement by the DIP Lender as to the aggregate amount of the obligations then payable under the DIP Credit Agreement as of the
Closing Date or a recent date that is acceptable to the REIT.


 






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(iii)          A
general release in form and substance reasonably acceptable to Gadsden Realty Investments by each Seller, and each Affiliate of
a Seller specified by the REIT, in each case, releasing and discharging the Sold Entity and each Sold Entity Subsidiary of all
obligations, claims or other payables to any Seller or any of their Affiliates.


 


(b)          Deliveries
by the REIT. The REIT shall deliver the Transaction Shares to the Seller Parties or to other Persons as described in Section
1.02(c) or to the Escrow Agent to be held in Escrow Account as described in Section 1.02(d) and Section 5.03.


 


		IV.	REPRESENTATIONS
                                         AND WARRANTIES



 


Section
4.01     Representations and Warranties of the Seller Parties. Except as set forth in the disclosure letter, dated the
date hereof and delivered to the REIT in connection with the execution and delivery of this Agreement (the “Seller Disclosure
Letter”), each Seller Party represents and warrants to the REIT, jointly and severally, as follows:


 


(a)          Organization,
Standing and Power. Each Seller Party is a corporation or limited partnership or limited liability company duly formed, validly
existing and in good standing under the laws of the State of its incorporation or formation, and has all of the requisite power,
corporate or other, authority and all necessary government approvals or licenses to own, lease, operate its properties and to
carry on its business as now being conducted. Each Seller Party is duly qualified or licensed to do business and is in good standing
in each jurisdiction in which the nature of the business it is conducting, or the ownership, operation or leasing of its properties
or the management of properties for others makes such qualification or licensing necessary, other than in such jurisdictions where
the failure to be so qualified or licensed or in good standing would not, individually or in the aggregate, constitute a Seller
Material Adverse Effect. Each jurisdiction in which a Seller Party is qualified or licensed to do business under which it conducts
business in any jurisdiction is identified in Section 4.01(a) of the Seller Disclosure Letter. Seller has heretofore made available
to Seller complete and correct copies of the articles of incorporation, certificate of limited partnership or certificate of formation
of each of the Seller Parties, each, as amended to the date of this Agreement (each, a “Seller Charter”), and
bylaws or limited partnership agreement or limited liability company of each Seller Party, each, as amended through the date hereof
(each, a “Seller Bylaws”). The Seller Charter and the Seller Bylaws of each Seller Party is in full force and
effect on the date of this Agreement and a true and complete copy of each Seller Charter and Seller Bylaws is attached as an exhibit
to Section 4.01(a) of the Seller Disclosure Letter.


 


(b)          Ownership
of the Seller Parties.


 


(i)           FCRETI
is a company with a class of securities registered under the Exchange Act and that FCRETI is not current with respect to filings
required under the Exchange Act.


 


(ii)          FC
OPCO is owned by FCRETI and limited partners therein. The sole general partner of FC OPCO is FCRETI. No limited partner in FC
OPCO has any right to vote with respect to the Sale or otherwise to participate in the management of FC OPCO.


 


(iii)         FC
OPCO and T-9 Developers are the only holders of any of the Sold Interests.


 






    10 


     


    

 


(iv)         The
Sold Entity owns 100% of the equity interests in Capital Station Holdings; Capital Station Holdings owns 100% of the equity interests
in Capital Station Member; Capital Station Member owns 100% of the equity interests in Capital Station; and Capital Station is
the sole owner of the Underlying Property.


 


(v)          All
outstanding equity interests in the Sold Entity and each Sold Entity Subsidiary have been duly authorized and are validly issued,
fully paid and nonassessable.


 


(vi)         There
are no subscriptions, options, warrants, conversion rights, stock appreciation rights, “phantom” stock, stock units,
calls, claims, rights of first refusal, rights of first offer, rights (including preemptive rights or purchase options), commitments,
assignment of any profits, cash flows or any similar arrangements or agreements or any agreement or commitment to issue or grant
any of the foregoing (each, a “Convertible Security”) in any of the Sold Entity or any Sold Entity Subsidiary.


 


(c)          Authority;
No Violations; Consents and Approval.


 


(i)           The
Board of Directors of FCRETI has approved and declared advisable the sale, disposition, transfer and assignment of the Subject
Property and the other transactions contemplated by this Agreement on behalf of FCRETI and as the general partner of FC OPCO on
behalf of FC OPCO. The Members and the Managers of T-9 Developers have approved and declared advisable the sale, disposition,
transfer and assignment of the Subject Property and the other transactions contemplated by this Agreement.


 


(ii)          Each
Seller Party has all requisite corporate or partnership power and authority to enter into this Agreement and to consummate the
transactions contemplated hereby.


 


(iii)         The
execution and delivery of this Agreement and the consummation of the transactions contemplated hereby have been duly authorized
by all necessary corporate, or other organizational action on the part of each Seller Party. This Agreement has been duly executed
and delivered by each Seller Party, and assuming due execution and delivery by each of the REIT and OPCO, constitutes legal, valid
and binding obligations of each Seller Party, enforceable against each Seller Party in accordance with its terms, except as such
enforceability may be limited by bankruptcy, insolvency, reorganization, moratorium and other laws of general applicability relating
to or affecting creditors’ rights and by general principles of equity (regardless of whether such enforceability is considered
in a proceeding in equity or at law).


 


(iv)         The
execution and delivery of this Agreement by each Seller Party does not, and the consummation of the transactions contemplated
hereby, and compliance with the provisions hereof, will not, conflict with, or result in any violation of, or default (with or
without notice or lapse of time, or both) under, or give rise to a right of termination, cancellation or acceleration of any material
obligation under, require the consent or approval of any third party under, any provision of:


 


(A)          the
Seller Charter or the Seller Bylaws or any provision of the comparable charter or organizational documents of any of the Seller
Parties,


 






    11 


     


    

 


(B)          any
loan or credit agreement or note, or any bond, mortgage, indenture, joint venture, lease, contract or other agreement, instrument,
permit, concession, franchise or license applicable to any Seller Party, or to which their respective properties or assets are
bound, or


 


(C)          any
federal, state or local or foreign statute, law, regulation, permit, license, approval, authorization, rule, ordinance or code
of any United States federal, state or local or any foreign government, governmental, regulatory or administrative authority,
agency or commission or any court, tribunal, or judicial or arbitral body (each, a “Governmental Entity”),
including any judicial or administrative interpretation thereof (“Law”) or any award, judgment, injunction,
consent, ruling, decree or order (whether temporary, preliminary or permanent) issued, adopted, granted, awarded or entered by
any Governmental Entity or private arbitrator of competent jurisdiction (“Order”) applicable to or binding
upon any Seller Party, or any of their respective properties or assets.


 


(v)          No
consent, approval, Order or authorization of, or registration, declaration or filing with, notice to or permit from, any Governmental
Entity or other Person, is required by or on behalf of any Seller Party in connection with the execution and delivery of this
Agreement by each Seller Party or the consummation by each Seller Party of the transactions contemplated hereby, except for: 


 


(A)          Such
consents and approvals required to be obtained under the Seller Charter or Seller Bylaws, all of which are listed on Section 4.01(c)(v)(A)
of the Seller Disclosure Letter, each of which has been duly obtained and is in full force and effect without any reservations
or limitations on the Closing Date


 


(B)          such
filings as may be required in connection with state or local transfer Taxes; and


 


(C)          any
such other consent, approval, Order, authorization, registration, declaration, filing or permit that the failure to obtain or
make, individually or in the aggregate, would not constitute a Seller Material Adverse Effect.


 


(d)          Property
Documentation.


 


(i)           The
Sellers have made available to the REIT a true and complete copy of all of the material documents regarding the Bankruptcy Case,
including draft of agreements or plans, orders or motions, and related material correspondence.


 


(e)          SEC
Required Information.


 


(i)           The
information that is required by the REIT to include in a Registration Statement under Regulation S-K that is with respect to any
Seller Party or the Underlying Property


 


(A)          Has
been provided by FCRETI and when considered in the aggregate and in consideration of the Seller Disclosure Letter, does not contain
any untrue statement of a material fact or omitted to state a material fact required to be stated therein or necessary to make
the statements therein, in light of the circumstances under which they were made, not misleading, in each case, as contemplated
by the requirements under the Securities Act or the Exchange Act; provided, that


 






    12 


     


    

 


(B)          With
respect to such information, if any, that was provided by third parties as to estimates or valuations or market conditions, FCRETI’s
representation is limited to that such information was correctly forwarded to the REIT, and (iii) the third party responsible
for such information was correctly identified and the reliance by FCRETI on such third party was reasonable.


 


(ii)          The
financial statement information of FCRETI and the Sold Entity (including the footnote information) that has been provided by the
Sellers to the REIT specifically for inclusion in the Registration Statement or Exchange Act Filing with respect to the acquisition
of the Subject Property complies in all material respects with the applicable accounting requirements and the published rules
and regulations of the SEC with respect thereto, were prepared in accordance with generally accepted accounting principles (“GAAP”)
applied on a consistent basis during the periods involved (except as may be indicated in the notes thereto, or, in the case of
the unaudited statements, as permitted by Rule 10-01 of Regulation S-X of the SEC) and fairly present, in accordance with applicable
requirements of GAAP and the applicable rules and regulations of the SEC (subject, in the case of the unaudited statements, to
normal, recurring adjustments, none of which are material), in each case, as in effect at such time, the assets, liabilities and
the consolidated financial position of FCRETI and the Sold Entity as of their respective dates and the consolidated results of
operations and cash flows of FCRETI and the Sold Entity, for the periods presented therein.


 


(f)          Absence
of Certain Changes or Events.


 


(i)           Since
January 2, 2018, each Seller Party has conducted their business only in the ordinary course consistent with past practice and
there has not been: 


 


(A)          a
Seller Material Adverse Effect


 


(B)          any
amendment of any material term of any outstanding security of the Sold Entity or any of the Sold Entity Subsidiaries;


 


(C)          any
default by the borrowers or guarantors under the DIP Credit Agreement;


 


(D)          any
casualty or loss of the Underlying Property;


 


(E)          any
repurchase, redemption or other acquisition of any of the outstanding equity interests of the Sold Entity or any Sold Entity Subsidiary;


 


(F)          any
Lien incurred or permitted by any Seller of any of the Sold Interests, other than the Subject Liens


 


(G)          any
change in any method or practice of financial accounting by the Sold Entity or any Sold Entity Subsidiary; or


 






    13 


     


    

 


(H)          any
event, transaction, filing or development in the Bankruptcy Case other than as provided to the REIT in a notice by the Sellers
or any event or transaction in the Bankruptcy Case that provides (or will provide) a settlement of the claims and settlement of
the case that has not been approved by the REIT.


 


(g)          No
Undisclosed Material Liabilities. Except as disclosed in the Seller Disclosure Letter, there are no debts, liabilities and
obligations, whether accrued or fixed, absolute or contingent, matured or unmatured or determined or determinable, accrued, or
contingent (a “Liability”), including, without limitation, those arising under any Law, Order, arising under
any contract, agreement, arrangement, commitment or undertaking or under any or claim, action, suit, arbitration, inquiry, proceeding
or investigation by or before any Government Entity of any of the Sold Entity or any Sold Entity Subsidiary other than such Liabilities
stated in Section 4.01(g) of the Seller Disclosure Letter or the claims that have been duly filed in the Bankruptcy Case or incurred
by the Sold Entity or any Sold Entity Subsidiary to the extent permitted under the DIP Credit Agreement.


 


(h)          No
Default. No Seller Party is or has been in default or violation (and no event has occurred which, with notice or the lapse
of time or both, would constitute a default or violation) of (i) any material term, condition or provision of its Seller Charter
or its Seller Bylaws, (ii) any term, condition or provision of any loan or credit agreement or any note, bond, mortgage, indenture,
lease or other agreement, instrument, permit, concession, franchise or license to which any such Seller Party is now a party or
by which any such Seller Party or any of their respective properties or assets is bound, or (iii) any Law or Order applicable
to or binding upon any such Seller Party or any of their respective properties or assets, except for defaults or violations that
have been cured in full.


 


(i)          Compliance
with Applicable Laws. Each Seller Party holds all permits, licenses, certificates, registrations, variances, exemptions, Orders,
franchises and approvals of all Governmental Entities necessary or required by any applicable Law or Order for the lawful conduct
of their respective businesses (the “Seller Permits”), except where the failure so to hold, individually or
in the aggregate, does not constitute and would not reasonably be expected to result in a Seller Material Adverse Effect. Each
Seller Party is in compliance with the terms of the Seller Permits, except where the failure to so comply, individually or in
the aggregate, does not constitute and would not reasonably be expected to result in a Seller Material Adverse Effect. Except
as would not, individually or in the aggregate, constitute and would not reasonably be expected to result in a Seller Material
Adverse Effect, the businesses of each Seller Party is not being and has not been conducted in violation of any Law or Order.
No investigation or review by any Governmental Entity with respect to any Seller Party is pending or, to the Knowledge of Seller,
is threatened, other than those the outcome of which, individually or in the aggregate, would not constitute a Seller Material
Adverse Effect.


 


(j)          Litigation.
Except as described in reasonable detail in Section 4.01(j) of the Seller Disclosure Letter, there is no litigation, arbitration,
claim, investigation, suit, action or proceeding pending or, to the Knowledge of Seller, threatened against or affecting any Seller
Party or any of their respective property or threatened against or affecting any Seller Party that questions the right and authority
of any Seller Party to enter into this Agreement or to effect the Sale of the Sold Interests.


 


(k)          Taxes.
Except as disclosed in Section 4.01(k) of the Seller Disclosure Letter:


 






    14 


     


    

 


(i)           Each
Seller Party has timely filed or has had timely filed on its behalf (taking into account extensions) all federal, state and other
income and franchise tax returns (“Tax Returns”) required to be filed by it or on its behalf, and all such
Tax Returns were, at the time filed, true, correct and complete; (B) each such Seller Party has paid all taxes, fees, levies,
duties, tariffs, imposts, and other charges of any kind (together with any and all interest, penalties, additions to tax and additional
amounts imposed with respect thereto) imposed by any government or taxing authority, including, without limitation: taxes or other
charges on or with respect to income, franchises, windfall or other profits, gross receipts, property, sales, use, capital stock,
payroll, employment, social security, workers’ compensation, unemployment compensation, or net worth; taxes or other charges
in the nature of excise, withholding, ad valorem, stamp, transfer, value added, or gains taxes; license, registration and documentation
fees; and customs duties, tariffs, and similar charges (“Taxes”) required to be paid by it; and (C) there are
no Liens for any material Taxes on any assets of any Seller Party.


 


(ii)          The
Sold Entity and the Sold Entity Subsidiaries are not a party to (A) any Tax allocation or sharing agreement or (B) any tax protection
agreement.


 


(iii)         The
Sold Entity and the Sold Entity Subsidiaries do not have any liability for Taxes of any Person under Treasury Regulation Section
1.1502-6 (or any similar provision of state, local or foreign Law), as a transferee or successor.


 


(iv)         No
Seller Party or the Sold Entity and the Sold Entity Subsidiaries has participated in a “listed transaction” within
the meaning of Treasury Regulation Section 1.6011-4(b)(2).


 


(v)          The
Sold Entity and the Sold Entity Subsidiaries have not since the date of its formation been classified for U.S. federal income
tax purposes as an association taxable as a corporation, or as a “publicly traded partnership” within the meaning
of Section 7704(b) of the Code.


 


(vi)          The
Sale is a not a transaction that requires withholding under Section 1445 of the Internal Revenue Code of 1986, as amended (the
“Code”) and neither Seller Party is a foreign person within the meaning of the Code.


 


(l)          Benefit
Plans. No Seller Party, and neither the Sold Entity or any Sold Entity Subsidiary has any liability under Employee Retirement
Income Security Act (“ERISA”) directly or through any Affiliate.


 


(m)          Labor
Matters. No Seller Party, and neither the Sold Entity or any Sold Entity Subsidiary is subject or party to any collective
bargaining agreement.


 


(n)          Environmental
Matters. Except as disclosed in Section 4.01(n) of the Seller Disclosure Letter


 


(i)           The
Sold Entity and the Sold Entity Subsidiaries are not in violation of any applicable Law or Order relating to pollution or protection
of public health and safety, the environment (including indoor or ambient air, surface water, groundwater, land surface or subsurface)
or natural resources, including laws and regulations relating to the release or threatened release of any Hazardous Materials
or to Environmental Laws; and


 






    15 


     


    

 


(ii)          Neither
Sold Entity nor the Sold Entity Subsidiaries have received any written notice of, and there are no, pending administrative, regulatory
or judicial actions, suits, demands, demand letters, claims, liens, notices of noncompliance or violation, investigation or proceedings
relating to Hazardous Materials or any Environmental Law against or affecting any of the Sold Entity or the Sold Entity Subsidiaries
or any of the Seller Parties that have not been remedied or cured, and to the Knowledge of Seller there is no basis therefor,
in each case, except as would not, individually or in the aggregate, have a Seller Material Adverse Effect.


 


(iii)          Neither
the Sold Entity nor any Sold Entity Subsidiary has entered into, agreed to or is bound by any material consent decree or order
or is a party to any material judgment, decree or judicial order relating to compliance with Environmental Laws or the investigation,
sampling, monitoring, treatment, remediation, removal or cleanup of Hazardous Materials.


 


(iv)          For
the purposes of this Agreement, the term “Environmental Laws” shall mean any Law or Order relating to any Hazardous
Material or to the manufacture, management, possession, presence, generation, processing, distribution, use, treatment, storage,
disposal, transportation, abatement, removal, remediation or handling of, or exposure to, Hazardous Materials.


 


(v)          For
the purposes of this Agreement, the term “Hazardous Materials” shall mean any pollutant, contaminant, waste
or toxic substance, including asbestos or any substance containing asbestos, polychlorinated biphenyls, petroleum or petroleum
products (including crude oil and any fraction thereof), radon, mold, fungus and other hazardous biological materials.


 


(o)          Brokers.
No broker, investment banker or other Person is entitled to any brokers’, finders’ or other similar finder’s
fee or commission in connection with the transactions contemplated by this Agreement based upon arrangements made by or on behalf
of any Seller Party, the Sold Entity any Sold Entity Subsidiary or any Affiliate thereof.


 


(p)          Material
Contracts.


 


(i)          True
and complete copies of all of the Material Contracts of the Sold Entity and each Sold Entity Subsidiary as in effect as of the
date hereof are listed in Section 4.01(p)(i) of the Seller Disclosure Letter. Seller has, prior to the date hereof, made available
to the REIT (including by filing with the SEC or by filings in the Bankruptcy Case) true and complete copies of each Material
Contract as in effect as of the date hereof. All Material Contracts are valid, binding and enforceable and in full force and effect
with respect to the Sold Entity and the Sold Entity Subsidiaries, subject to the rights of the debtors and the parties to the
Material Contracts in the Bankruptcy Case.


 


(ii)          There
is no non-competition agreement or other contract or agreement that contains covenants that restrict in any material respect the
Sold Entity or any Sold Entity Subsidiary’s ability to compete in any line of business or with any Person in any geographical
areas.


 






    16 


     


    

 


(iii)          No
Person has any right to acquire any equity interest in the Sold Entity or in any Sold Entity Subsidiary or any right to the cash
flows or income of any such Person.


 


(q)          Investment
Company Act of 1940. No Seller Party and neither the Sold Entity nor any Sold Entity Subsidiary is, or after giving effect
to the transactions contemplated by this Agreement will be, required to be registered as an investment company under the Investment
Company Act of 1940, as amended.


 


(r)          No
Other Business. Each of the Sold Entity and each Sold Entity Subsidiary was formed solely for the ownership of the Underlying
Property (directly or indirectly) and has not engaged in any other business activities.


 


(s)          Solvency.


 


(i)          Immediately
after giving effect to the Sale and the transactions contemplated by this Agreement, including the issuance of the Transaction
Shares: (i) the fair value of the assets of each Seller Party (individually), at a fair valuation, will exceed the debts and liabilities,
direct, subordinated, contingent or otherwise, of each Seller Party (individually), respectively; (ii) the present fair saleable
value of the property of each Seller Party (individually), will be greater than the amount that will be required to pay the probable
liabilities and obligations of such Person; (iii) each Seller Party (individually) will be able to pay their debts and liabilities,
direct, subordinated, contingent or otherwise, as such debts and liabilities become absolute and matured; and (iv) each Seller
Party (individually) will not have unreasonably small capital with which to conduct the businesses in which they are engaged as
such businesses are now conducted and are proposed to be conducted following the Closing Date.


 


(ii)          On
the Closing Date, no Seller Party will cause itself to incur debts beyond its ability to pay such debts as they mature, taking
into account the timing and amounts of cash to be received by it and the timing and amounts of cash to be payable on or in respect
of its indebtedness.


 


(t)          Due
Diligence. Each Seller Party hereby acknowledge and agree that they are acquiring the Transaction Shares after completion
of their own due diligence which they have conducted to the extent they have deemed necessary or appropriate, however, such due
diligence shall not effect any representation or warranty of the REIT provided in this Agreement. Each Seller Party has been provided
all information requested with respect to the investment decision being made to acquire the Transaction Shares. Each Seller Party
is acquiring the Transaction Shares in a transaction that does not involve a public offering and no Seller Party has any intention
of distributing or selling or being part of the distribution of any of the Transaction Shares in a manner that could cause a violation
of the Securities Act. Each Seller Party acknowledges the secured bridge financing of the REIT and OPCO and the obligations of
such Person and that the acquisition of the Sold Interests is part of the initial assets or investments of the REIT and OPCO.


 


Section
4.02     Representations and Warranties of the REIT and the OPCO. Except as set forth in the disclosure letter, dated
the date hereof and delivered to the REIT in connection with the execution and delivery of this Agreement (the “Gadsden
Disclosure Letter”), each of the REIT and OPCO represents and warrants to the Seller Parties, jointly and severally,
as follows:


 






    17 


     


    

 


(a)          Organization,
Standing and Power.


 


(i)          Each
of the REIT and OPCO is a corporation or limited partnership, respectively, duly formed, validly existing and in good standing
under the laws of the State of its incorporation or formation, and has all of the requisite power, corporate or other, authority
and all necessary government approvals or licenses to own, lease, operate its properties and to carry on its business as now being
conducted. Each of the REIT and OPCO is duly qualified or licensed to do business and is in good standing in each jurisdiction
in which the nature of the business it is conducting, or the ownership, operation or leasing of its properties or the management
of properties for others makes such qualification or licensing necessary, other than in such jurisdictions where the failure to
be so qualified or licensed or in good standing would not, individually or in the aggregate, constitute a Gadsden Material Adverse
Effect. Each jurisdiction in which the REIT and OPCO is qualified or licensed to do business under which it conducts business
in any jurisdiction is identified in Section 4.02(a) of the Gadsden Disclosure Letter. The REIT has heretofore made available
to each Seller Party complete and correct copies of the articles of association, certificate of limited partnership of each of
the REIT and OPCO, each, as amended to the date of this Agreement (each, a “Gadsden Charter”), and bylaws or
limited partnership agreement, each, as amended through the date hereof (each, a “Gadsden Bylaws”). The Gadsden
Charter and the Gadsden Bylaws of each of the REIT and OPCO is in full force and effect on the date of this Agreement and a true
and complete copy of each Gadsden Charter and Gadsden Bylaws has been previously provided to Sellers.


 


(b)          Ownership
of OPCO. The sole general partner of OPCO is the REIT.


 


(c)          Capital
Stock of the REIT. The terms and conditions of the Common Stock, Series A Stock and Series B Stock are as provided in the
Amended and Restated Articles of Incorporation, previously provided to the Seller.


 


(d)          Authority;
No Violations; Consents and Approval.


 


(i)           The
Board of Directors of the REIT has approved and declared advisable the acquisition of the Subject Property, the issuance of the
Transaction Shares and the other transactions contemplated by this Agreement on behalf of the REIT and as the general partner
of OPCO on behalf of OPCO.


 


(ii)          Each
of the REIT and OPCO has all requisite corporate or partnership power and authority to enter into this Agreement and to consummate
the transactions contemplated hereby.


 


(iii)         The
execution and delivery of this Agreement and the consummation of the transactions contemplated hereby have been duly authorized
by all necessary corporate, or other organizational action on the part of each of the REIT and OPCO. This Agreement has been duly
executed and delivered by each of the REIT and OPCO, and assuming due execution and delivery by each of the Seller Parties, constitutes
legal, valid and binding obligations of each of the REIT and OPCO, enforceable against each of the REIT and OPCO in accordance
with its terms, except as such enforceability may be limited by bankruptcy, insolvency, reorganization, moratorium and other laws
of general applicability relating to or affecting creditors’ rights and by general principles of equity (regardless of whether
such enforceability is considered in a proceeding in equity or at law).


 






    18 


     


    

 


(iv)          The
execution and delivery of this Agreement by each of the REIT and OPCO does not, and the consummation of the transactions contemplated
hereby, and compliance with the provisions hereof, will not, conflict with, or result in any violation of, or default (with or
without notice or lapse of time, or both) under, or give rise to a right of termination, cancellation or acceleration of any material
obligation under, require the consent or approval of any third party under, any provision of:


 


(A)          the
Gadsden Charter or the Gadsden Bylaws,


 


(B)          any
loan or credit agreement or note, or any bond, mortgage, indenture, joint venture, lease, contract or other agreement, instrument,
permit, concession, franchise or license applicable to any of the REIT or OPCO, or to which their respective properties or assets
are bound, or


 


(C)          any
federal, state or local or foreign statute, law, regulation, permit, license, approval, authorization, rule, ordinance or code
of any Governmental Entity, including any Law or any Order applicable to or binding upon any of the REIT or OPCO, or any of their
respective properties or assets.


 


(v)          No
consent, approval, Order or authorization of, or registration, declaration or filing with, notice to or permit from, any Governmental
Entity or other Person, is required by or on behalf of any of the REIT or OPCO in connection with the execution and delivery of
this Agreement by each of the REIT or OPCO or the consummation by each of the REIT or OPCO of the transactions contemplated hereby,
except for: 


 


(A)          Such
consents and approvals required to be obtained under the Gadsden Charter or Gadsden Bylaws have been duly obtained and is in full
force and effect without any reservations or limitations on the Closing Date;


 


(B)          such
filings as may be required in connection with state or local transfer Taxes; and


 


(C)          any
such other consent, approval, Order, authorization, registration, declaration, filing or permit that the failure to obtain or
make, individually or in the aggregate, would not constitute a Gadsden Material Adverse Effect.


 


(e)          Absence
of Certain Changes or Events.


 


(i)           Since
January 1, 2018, each of the REIT and OPCO has conducted their business only in the ordinary course consistent with past practice
and there has not been: 


 


(A)          a
Gadsden Material Adverse Effect;


 


(B)          any
amendment of any material term of any outstanding security of the REIT or OPCO other than as provided in the Gadsden Charter or
Gadsden Bylaws; or


 


(C)          any
change in any method or practice of financial accounting by the REIT or OPCO.


 






    19 


     


    

 


(f)          [Intentionally
Omitted]


 


(g)          No
Default. The REIT or OPCO is not in default or violation (and no event has occurred which, with notice or the lapse of time
or both, would constitute a default or violation) of (i) any material term, condition or provision of its Gadsden Charter or the
Gadsden Bylaws, (ii) except for Liabilities incurred prior to April 30, 2018, any term, condition or provision of any loan or
credit agreement or any note, bond, mortgage, indenture, lease or other agreement, instrument, permit, concession, franchise or
license to which any such the REIT or OPCO is now a party or by which any such Person or any of their respective properties or
assets is bound, or (iii) any Law or Order applicable to or binding upon any such Person or any of their respective properties
or assets, except for defaults or violations that have been cured in full.


 


(h)          Compliance
with Applicable Laws. Each of the REIT and OPCO holds all permits, licenses, certificates, registrations, variances, exemptions,
Orders, franchises and approvals of all Governmental Entities necessary or required by any applicable Law or Order for the lawful
conduct of their respective businesses (the “Gadsden Permits”), except where the failure so to hold, individually
or in the aggregate, does not constitute and would not reasonably be expected to result in a Gadsden Material Adverse Effect.
Each of the REIT and OPCO is in compliance with the terms of the Gadsden Permits, except where the failure to so comply, individually
or in the aggregate, does not constitute and would not reasonably be expected to result in a Gadsden Material Adverse Effect.
Except as would not, individually or in the aggregate, constitute and would not reasonably be expected to result in a Gadsden
Material Adverse Effect, the businesses of each of the REIT and OPCO is not being and has not been conducted in violation of any
Law or Order. No investigation or review by any Governmental Entity with respect to any of the REIT or OPCO is pending or, to
the Knowledge of Gadsden, is threatened, other than those the outcome of which, individually or in the aggregate, would not constitute
a Gadsden Material Adverse Effect.


 


(i)          Litigation.
Except as described in reasonable detail in Section 4.02(i) of the Gadsden Disclosure Letter, there is no litigation, arbitration,
claim, investigation, suit, action or proceeding pending or, to the Knowledge of Gadsden, threatened against or affecting any
of the REIT or OPCO or any of their respective property or threatened against or affecting any of the REIT or OPCO that questions
the right and authority of any of the REIT or OPCO to enter into this Agreement or to acquire the Sold Interests.


 


(j)          Taxes.
Each of the REIT and OPCO has timely filed or has had timely filed on its behalf (taking into account extensions) all Tax Returns
required to be filed by it or on its behalf, and all such Tax Returns were, at the time filed, true, correct and complete; (B)
each such Person has paid all Taxes required to be paid by it; and (C) there are no Liens for any material Taxes on any assets
of any such Person.


 


(k)          Benefit
Plans.


 


(i)          The
REIT and OPCO do not have any liability under ERISA directly or through any Affiliate.


 


(l)           Labor
Matters. The REIT and OPCO are not subject or party to any collective bargaining agreement.


 






    20 


     


    

 


(m)          Environmental
Matters.


 


(i)          The
REIT or OPCO are not in violation of any applicable Law or Order relating to pollution or protection of public health and safety,
the environment (including indoor or ambient air, surface water, groundwater, land surface or subsurface) or natural resources,
including laws and regulations relating to the release or threatened release of any Hazardous Materials or to Environmental Laws;
and


 


(ii)          Neither
the REIT nor OPCO have received any written notice of, and there are no, pending administrative, regulatory or judicial actions,
suits, demands, demand letters, claims, liens, notices of noncompliance or violation, investigation or proceedings relating to
Hazardous Materials or any Environmental Law against or affecting any such Person that have not been remedied or cured, and to
the Knowledge of Gadsden there is no basis therefor, in each case, except as would not, individually or in the aggregate, have
a Gadsden Material Adverse Effect.


 


(iii)          Neither
the REIT nor OPCO have entered into, agreed to or is bound by any material consent decree or order or is a party to any material
judgment, decree or judicial order relating to compliance with Environmental Laws or the investigation, sampling, monitoring,
treatment, remediation, removal or cleanup of Hazardous Materials.


 


(n)          Brokers.
No broker, investment banker or other Person is entitled to any brokers’, finder’s or other similar finder’s
fee or commission in connection with the transactions contemplated by this Agreement based upon arrangements made by or on behalf
of any of the REIT or OPCO other than for arrangements with National Securities Corporation.


 


(o)          Business
of the REIT and OPCO. As of the date of this Agreement, the business of the REIT and OPCO has been to identify and attempt to
acquire real estate asset and to raise money in connection with such business through private placements of securities and to
file and attempt to have declared effective a registration statement on Form S-11 under the Securities Act (with “Prior
Registration Statement”). As of the date of this Agreement, the REIT has withdrawn such registration statement.


 


(p)          Investment
Company Act of 1940. Neither the REIT nor OPCO is, or after giving effect to the transactions contemplated by this Agreement
will be, required to be registered as an investment company under the Investment Company Act of 1940, as amended.


 


(q)          Solvency.


 


(i)           Immediately
after giving effect to the Sale and the transactions contemplated by this Agreement, including the issuance of the Transaction
Shares: (i) the fair value of the assets of each of the REIT and OPCO, at a fair valuation, will exceed the debts and liabilities,
direct, subordinated, contingent or otherwise, of each such Person; (ii) the present fair saleable value of the property of each
such Person, will be greater than the amount that will be required to pay the probable liabilities and obligations of such Person;
(iii) each such Person will be able to pay their debts and liabilities, direct, subordinated, contingent or otherwise, as such
debts and liabilities become absolute and matured; and (iv) each such Person will not have unreasonably small capital with which
to conduct the businesses in which they are engaged as such businesses are now conducted and are proposed to be conducted following
the Closing Date.


 






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(ii)          On
the Closing Date, neither the REIT nor OPCO will cause itself to incur debts beyond its ability to pay such debts as they mature,
taking into account the timing and amounts of cash to be received by it and the timing and amounts of cash to be payable on or
in respect of its indebtedness.


 


(r)          Due
Diligence. REIT and OPCO hereby acknowledge and agree that they are acquiring the Subject Property after completion of their
own due diligence which they have conducted to the extent they have deemed necessary or appropriate, however, such due diligence
shall not effect any representation or warranty of the Seller Parties provided in this Agreement.


 


		V.	COVENANTS



 


Section
5.01     Covenants of Seller Parties. Each of the Seller Parties agrees that, unless the REIT agrees, in writing (which
agreement shall not be unreasonably withheld or conditioned), or otherwise stated in this Agreement:


 


(a)          Release
Time. Until the earlier of the Closing Date and the abandonment or termination of this Agreement pursuant to Article VI
or otherwise (the “Release Time”):


 


(i)           no
amendment will be made to the Seller Charter or the Seller Bylaws;


 


(ii)          no
equity interest or Convertible Security shall be issued or sold by the Sold Entity or any Sold Entity Subsidiary;


 


(iii)         no
Liability will be incurred by the Sold Entity or any Sold Entity Subsidiary that is not under the DIP Credit Agreement or as permitted
under the DIP Credit Agreement or as permitted by the court in the Bankruptcy Case;


 


(iv)         no
Lien shall be incurred or permitted with respect to the Sold Interests;


 


(v)          no
action shall be take in the Bankruptcy Case by any Seller Party that increases or settles the claims made in the Bankruptcy Case
without the prior consent of the REIT;


 


(b)          Access
to Books and Records. Until the Release Time, each Seller Party will afford the officers, directors, employees, counsel, agents,
investment bankers, accountants, and other representatives of the REIT or any of its subsidiaries or lenders, upon the reasonable
request of the REIT, free and full access to the books and records of the Seller Parties, the Sold Entity and each Sold Entity
Subsidiary, will permit them to make extracts from and copies of such books and records, and will from time to time furnish the
REIT with such additional financial and operating data and other information as to the financial condition, results of operations,
businesses, properties, assets, liabilities, or future prospects of the Sold Entity and each Sold Entity Subsidiary and the Subject
Property as the REIT may from time to time reasonably request.


 






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(c)          Conduct
of Affairs. Until the Release Time, each Seller Party will conduct its affairs so that at the Closing Date no representation,
covenant or agreement of any Seller Party under this Agreement will be breached by reason of the actions or omissions of any Seller
Party.


 


(d)          Performance
of Covenants Prior to the Closing. Each Seller Party will act in good faith so that at the Closing Date no covenant or agreement
of any Seller Party under this Agreement will be breached, and no condition in this Agreement to be performed on the party of
Sellers will remain unfulfilled by reason of the actions or omissions of any Seller Party.


 


(e)          Advise
of Material Occurrences. Until the Release Time, each Seller Party will promptly advise the REIT of any material fact or occurrence
or any pending or threatened material occurrence of which any Seller Party obtains knowledge and which (if existing and known
at the date of the execution of this Agreement) any Seller Party has reason to believe would have been required to be set forth
or disclosed in or pursuant to this Agreement, which (if existing and known at any time prior to or at the Closing Date) any Seller
Party has reason to believe would make the performance by any party of a covenant contained in this Agreement impossible or make
such performance materially more difficult than in the absence of such fact or occurrence, or which (if existing and known at
the time of the Closing Date) any Seller Party has reason to believe would cause a condition to any party’s obligations
under this Agreement not to be fully satisfied and make any of the statements provided by any Seller Party with respect to the
Subject Property that would be required to be stated in a Registration Statement or Exchange Act Filing (under Regulation S-K)
not true and correct in all material respects or omit any material fact which any Seller Party has reason to believe would make
the statements made therein not true and correct in all material respects, it being understood that Seller is not and will not
be involved in the preparation of the Registration Statement or Exchange Act Filing (which will be prepared by the REIT and its
professional advisors) and except with respect to such information will have no responsibility therefor. FCRETI shall provide
such information that the REIT reasonably requests for inclusion in the Registration Statement or the Exchange Act Filing and
provide a representation and warranty with respect to the accuracy and completeness of such information.


 


(f)          Confidential
Information. Each Seller Party shall use its commercially reasonable efforts to insure that all confidential and proprietary
information which any Seller Party or any of their respective officers, directors, employees, counsel, agents, investment bankers,
or accountants may now possess or may hereafter create or obtain relating to the financial condition, results of operations, businesses,
properties, assets, liabilities, or future prospects of such Seller Party or the Subject Property shall not be published, disclosed,
or made accessible by any of them to any other Person at any time or used by any of them except in the ordinary course of business
and for the benefit of a Seller Party; provided, however, that the restrictions of this sentence shall not apply (A) after the
Closing Date or the date that this Agreement is terminated in accordance with Article VI or otherwise, (B) as may otherwise be
required by law, (C) as may be necessary or appropriate in connection with the enforcement of this Agreement, (D) to the extent
the information shall have otherwise become publicly available, or (E) to the extent that it may be necessary or appropriate to
share such information with attorneys, accountants and/or other professional advisors.


 






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(g)          Release
of Confidential Information. Before any Seller Party releases any information concerning this Agreement, or any of the transactions
contemplated by this Agreement which is intended for, or may result in, public dissemination thereof, each Seller Party shall
cooperate with the REIT, shall furnish drafts of all documents or proposed oral statements to the REIT for comment, and shall
not release any such information without the consent of the REIT, which consent shall not be unreasonably withheld. Nothing contained
herein shall prevent any Seller Party from releasing any information if required to do so by law or to the extent required to
be provided to the court in connection with the Bankruptcy Case.


 


(h)          Further
Approvals. The Seller Parties shall not make any agreement or reach any understanding as a condition for obtaining any consent,
authorization, approval, order, license, certificate, or permit required for the consummation of the transactions contemplated
by this Agreement without first obtaining the approval of the REIT.


 


(i)          Bankruptcy
Case. The Seller Parties shall take such action in connection with Bankruptcy Case that is from time to time reasonably requested
by the REIT consistent with the terms of this Agreement.


 


(j)          Transfer
Tax Statutes. The Seller Parties shall timely prepare and file any declaration or filing necessary to comply with any transfer
tax statutes that require any such filing before the Closing Date, it being understood that Seller is expected to take direction
regarding these matters from REIT or its counsel.


 


Section
5.02     Covenants of REIT and OPCO. Each of REIT and OPCO agrees that, unless the Seller Parties agree, in writing,
acting reasonably, or otherwise stated in this Agreement until the earlier of the Closing Date and the abandonment or termination
of this Agreement pursuant to Article VI or otherwise (the “Release Time”):


 


(a)          Access
to Books and Records. REIT and OPCO will afford the officers, directors, employees, counsel, agents, investment bankers, accountants,
and other representatives of the Seller Parties or any of its subsidiaries or lenders, upon the reasonable request of the Seller
Parties, free and full access to the books and records of the REIT and OPCO, will permit them to make extracts from and copies
of such books and records, and will from time to time furnish the Seller Parties with such additional financial and operating
data and other information as to the financial condition, results of operations, businesses, properties, assets, liabilities,
or future prospects of the Subject Property as the Seller Parties may from time to time reasonably request in order to consummate
the transactions contemplated by this Agreement.


 


(b)          Performance
of Covenants Prior to the Closing. REIT and OPCO will act in good faith so that at the Closing Date no covenant or agreement
of any Seller Party under this Agreement will be breached, and no condition in this Agreement to be performed on the party of
Sellers will remain unfulfilled by reason of the actions or omissions of any Seller Party.


 


(c)          Advise
of Material Occurrences. Until the Release Time, each of the REIT and OPCO will endeavor, in the exercise of good faith efforts,
promptly advise the Seller Parties of any material fact or occurrence or any pending or threatened material occurrence of which
either REIT or OPCO knowledge and which (if existing and known at the date of the execution of this Agreement) either REIT or
OPCO has reason to believe would have been required to be set forth or disclosed in or pursuant to this Agreement, which (if existing
and known at any time prior to or at the Closing Date) either REIT or OPCO has reason to believe would make the performance by
any party of a covenant contained in this Agreement impossible or make such performance materially more difficult than in the
absence of such fact or occurrence, or which (if existing and known at the time of the Closing Date) either REIT or OPCO has reason
to believe would cause a condition to any party’s obligations under this Agreement not to be fully satisfied and make any
of the statements provided by REIT or OPCO with respect to the Subject Property that would be required to be stated in a Registration
Statement or Exchange Act Filing (under Regulation S-K) not true and correct in all material respects or omit any material fact
which any Seller Party has reason to believe would make the statements made therein not true and correct in all material respects.


 






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(d)          Filing
of Registration Statement. The REIT will use its commercially reasonable efforts to file the Registration Statement and have
the Registration Statement declared effective in accordance with the Securities Act in a manner that does not cause liability
under Section 11 of the Securities Act, or in lieu of filing the Registration Statement, file the Exchange Act Filing.


 


Section
5.03     Indemnity and Escrow.


 


(a)          Indemnification.


 


(i)           Mutual
Indemnification.


 


(A)          Each
of the Seller Parties, jointly and severally, agree to indemnify and hold harmless the REIT for any and all Liabilities, losses,
damages, claims, costs and expenses, interest, awards, judgments and penalties, including, without limitation, reasonable attorneys’
and consultants’ fees and expenses (a “Loss”), actually suffered or incurred by the REIT or the OPCO
or any of their subsidiaries (a “REIT Indemnified Party”) arising from or related to any breach or default
by any Seller Party of any of the representations and warranties or covenants made by or on behalf of any Seller Party or in any
instrument, certificate or affidavit delivered by any Seller Party, under claims made by the REIT or any of its Affiliates; provided
that the amount of the indemnity in this Section 5.03(a) shall not exceed the value (as ascribed under Section 5.03(a)(iii)) of
the Transaction Shares issued as consideration.


 


(B)          The
REIT and OPCO, jointly and severally, agree to indemnify and hold harmless the Sellers for any and all Losses, actually suffered
or incurred by the Sellers (a “Seller Indemnified Party”) arising from or related to any breach or default
by the REIT or OPCO of any of the representations and warranties or covenants made by or on behalf of any the REIT or OPCO or
in any instrument, certificate or affidavit delivered by the REIT or OPCO, under claims made by a Seller; provided that the amount
of the indemnity in this Section 5.03(a) shall not exceed the value (as ascribed under Section 5.03(a)(iii)) of the Transaction
Shares issued as consideration.


 






    25 


     


    

 


(C)          Any
party entitled to indemnification under this Section 5.01(a)(i) shall provide notice of a claim (“Indemnification Claim”)
for indemnification, which notice shall describe in reasonable detail of the claim and the estimated amount of the Loss. Such
notice of an Indemnification Claim shall be provided promptly after knowledge of such claim, provided the failure to provide such
prompt notice shall not relieve the indemnifying party of its obligations under this Section 5.03(a) other than to the extent
that the indemnified party is actually prejudiced and no claim shall be made after the applicable Time Bar. The REIT and the Sellers
will negotiate in good faith any such Indemnification Claim to settle such Indemnification Claims. Any Indemnification Claims
that are not solved within 20 days may be brought by either such Person to arbitration under JAMS in New York, New York. Any arbitration
arising out of or related to this Agreement shall be conducted in accordance with the expedited procedures set forth in the JAMS
Comprehensive Arbitration Rules and Procedures as those Rules exist on the effective date of this Agreement, including Rules 16.1
and 16.2 of those Rules. The parties shall maintain the confidential nature of the arbitration proceeding and the Award, including
the Hearing, except as may be necessary to prepare for or conduct the arbitration hearing on the merits, or except as may be necessary
in connection with a court application for a preliminary remedy, a judicial challenge to an Award or its enforcement, or unless
otherwise required by law or judicial decision. Capitalized terms used this paragraph that are not otherwise defined in this Agreement
shall have the respective meanings ascribed to such terms by JAMS.


 


(D)          The
REIT shall have the right to control the defense of any claim for indemnification for any Losses arising from or related to the
Subject Lien, including any right of any Person to any of the Sold Interests or rights therein or distributions therefrom and
may settle any such claim without the approval of any Seller Party. The indemnified party shall have the right to control the
defense of any claim for indemnification for any Losses arising from or related to any other matter with counsel selected by the
indemnified party that is acceptable to the indemnifying party, which acceptance shall not be unreasonably withheld, delayed or
conditioned. Each of the parties to this agreement and their Affiliates shall provide reasonably assistance in the defense of
any claim underlying a right for which indemnification under this Section 5.03 is provided. Other than with respect to claims
underlying Losses arising from or related to the Subject Lien, including any right of any Person to any of the Sold Interests
or rights therein or distributions therefrom, an indemnified Person shall not settle an underlying claim giving rise to such indemnification
under this Agreement without the prior consent of the indemnifying party, which consent shall not be unreasonably withheld, delayed
or conditioned, unless such settlement provides only for monetary relief and provides for full settlement of such claim.


 


(E)          The
rights to indemnification of a Person may not be assigned to any other Person and no other Person is a third party beneficiary
of such rights.


 


(F)          For
the purposes of this Agreement, the term “Time Bar” means the following:


 


(1)          With
respect to claims under Section 4.01:


 


(I)          Within
the applicable statute of limitations, with respect to subsections (a),(b), (c), (l), (n), (q) and (s); and


 






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(II)          By
January 30, 2020, with respect to all other subjections of Section 4.01;


 


(2)          With
respect to claims under Section 4.02:


 


(I)          Within
the applicable statute of limitations, with respect to subsections (a),(b), (c), (d) (k), (m), (p) and (q); and


 


(II)          By
January 30, 2020, with respect to all other subjections of Section 4.02.


 


(ii)          In
addition to the obligations under Section 5.03(a), each of the Seller Parties shall, jointly and severally, agree to indemnify
and hold harmless the REIT Indemnified Parties for any and all Losses arising from or related to the Subject Lien, including any
right of any Person to any of the Sold Interests or rights therein or distributions therefrom.


 


(iii)          Payment
of Claims.


 


(A)          All
obligations of a Seller Party under this Section 5.03 may be paid, at the election of the REIT or the applicable Seller Party,
by the payment of Transaction Shares to the REIT, which shares shall be held in the treasury of the REIT or cancelled at the option
of the REIT. If Transaction Shares are used to pay the indemnification obligations under this Section 5.03, then the deemed value
of the: (A) Series A Stock is $25.00 per share and (B) Series B Stock and the Common Stock is $10.00 per share.


 


(iv)          Notwithstanding
the provisions of Section 5.03(a):


 


(A)          the
aggregate amount payable to that may be paid to all of the REIT Indemnification Parties shall not exceed the amount of the Purchase
Price;


 


(B)          the
aggregate amount payable to that may be paid to all of the Seller Indemnification Parties shall not exceed the amount of the Purchase
Price; and


 


(C)          no
claim for indemnification under this Section 5.03(a), other than with respect to a claim under Section 5.03(a)(ii), may be made
by the REIT Indemnification Parties unless and until the aggregate amount of Losses is at least $50,000, and the indemnifying
parties shall be liable for the obligations to indemnify the REIT Indemnified Parties (or the Seller Indemnified Parties, as the
case may be) for all Losses of such indemnified parties, if the aggregate amount of Losses is at least $50,000.


 


(v)          Any
Person that takes or acquires any of the Transaction Shares shall, as a condition to any such transfer and assignment, have an
obligation under this Section 5.03 for the indemnification of the REIT Indemnified Parties to the fullest extent of the transferor
of such Transaction Shares, solely to the limit of transferring such shares in accordance with Section 5.03(a)(iii) or the proceeds
of such shares; provided such liability under this Section 5.03(a)(v) shall expire on the First Release Date.


 






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(b)          Escrow
Arrangements.


 


(i)           The
Seller Parties acknowledge and agree that the Transaction Shares shall be held in escrow by Herrick, Feinstein LLP, counsel to
the REIT, under the terms and conditions of the escrow agreement (“Escrow Agreement”) in the form set forth
in Exhibit II executed by the Seller Parties, the REIT, OPCO and Herrick, Feinstein LLP.


 


(ii)          The
Escrow Agreement establish and account (the “Escrow Account”) that will hold only the Transaction Shares, which
shall be released to the Person or Persons as provided in this Section 5.03(b).


 


(iii)          Subject
to the provisions of Section 5.03(b)(vii), the Transaction Shares that are Series B Stock and the shares of Common Stock that
are issued upon the conversion of any Series B Stock (collectively, the “Escrowed Shares”) will be held under
the terms and conditions of the Escrow Agreement and, subject to the provisions of Section 5.03(b)(vii), shall be released on
the following dates (each a “Release Date”):


 


(A)          The
first Release Date (“First Release Date”) shall be the effective date of the Registration Statement.


 


(B)          The
second Release Date (“Second Release Date”) shall be the date that is the later of (x) the effective date of
the Registration Statement or (y) 90 days after the Closing Date.


 


(C)          The
third Release Date (“Third Release Date”) shall be the date that is the later of (x) the effective date of
the Registration Statement or (y) 180 days after the Closing Date.


 


(iv)          Release
of Escrowed Shares. An amount of the Escrowed Shares shall be held to pay or reimburse the REIT for its Losses with respect to
Indemnification Claims. Escrowed Shares that are not subject or used for such Indemnity Claims will be transferred to the partners
of FC OPCO and (as applicable) and the shareholders of FCRETI as provided in this Section 5.03(b)(iv). The Escrowed Shares shall
have an ascribed value that is used for the payment or reimbursement of Losses equal to $10.00 per share, even if the actual value
of the Common Stock on the date of the release of any Escrowed Shares is different.


 


(A)          On
the First Release Date, all of the Escrowed Shares, less 750,000 shares of Series B Stock shall be released to the partners of
FC OPCO, including FCRETI, as directed by irrevocable instructions delivered by FC OPCO to the REIT, and the shares that will
be released to FCRETI shall be delivered to the transfer agent of FCRETI for transfer and delivery to the shareholders of FCRETI
as directed by FCRETI.


 


(B)          On
the Second Release Date,


 


(1)          Of
the Escrowed Shares that are remaining on deposit in the Escrow Account, the following shall continue to remain on deposit:


 






    28 


     


    

 


(I)          500,000
shares of Series B Stock, plus


 


(II)          the
number of Escrowed Shares that are sufficient to pay for the aggregate amount of Losses related to Indemnification Claims made
on or prior to the Second Release Date.


 


(2)          The
Escrowed Shares remaining on deposit in the Escrow Account, other than the shares noted in clause (A), above, shall be released
to the partners of FC OPCO, including FCRETI, as directed by irrevocable instructions delivered by FC OPCO to the REIT, and the
shares that will be released to FCRETI shall be delivered to the transfer agent of FCRETI for transfer and delivery to the shareholders
of FCRETI as directed by FCRETI.


 


(3)          On
the Third Release Date, of the Escrowed Shares that are remaining on deposit in the Escrow Account, the following shall continue
to remain on deposit the number of Escrowed Shares that are sufficient to pay for the aggregate amount of Losses related to Indemnification
Claims made on or prior to the Third Release Date.


 


(v)          Subject
to the provisions of Section 5.03(b)(vii), if the Escrowed Shares on deposit in the Escrow Account that would be delivered to
the shareholders of FCRETI may not be so delivered because the Registration Statement has not been declared effective, then from
and after the date that is one year after the Closing Date, such shares:


 


(A)          may
be sold on terms and conditions that are customary for the sale of such assets, and acceptable to FCRETI, which acceptance shall
not be unreasonably withheld, delayed or conditioned, or


 


(B)          if
such shares are not sold on or prior to the date that is 15 months after the Closing Date, then the REIT may redeem such shares
that have not been sold for a price equal to $10.00 per share and such cash proceed shall be a special dividend payable by FCRETI
to its shareholders.


 


(vi)          Any
Escrowed Shares subject to an Indemnification Claim shall be retained in the Escrow Account until the resolution of such Indemnification
Claim by agreement of FCRETI or through arbitration as contemplated by Section 5.03(a)(i)(C).


 


(vii)          Override
Regarding the Subject Lien. The provisions in this Section 5.03(b)(vii) are referred to the “Override Escrow Provisions”.


 


(A)          Notwithstanding
any provision of this Agreement to the contrary, including without limitation, the provisions of Section 5.03(b)(iv) and Section
5.03(b)(v):


 


(1)          all
of the Transaction Shares shall be held in the Escrow Account and be subject to the provisions of the Escrow Agreement until the
earlier of (1) the date that is one year after the Closing Date; or (2) date that all of the Subject Liens are released and no
Person with any claim regarding the Subject Lien that is a Lien on the Sold Interests or any of the interests of the Sold Entity
in any Sold Entity Subsidiary other than the payment of a cash amount that is acceptable to the REIT in its sole and absolute
discretion, which may be arbitrary;


 






    29 


     


    

 


(2)          The
amount of the cash and the value of securities of the REIT issued by the REIT or OPCO used or paid to release the Subject Liens
shall reduce the number of the Transaction Shares issued as the purchase price. The allocation of such reduction shall be as follows:


 


(I)          First,
reduce the number of shares of Series B Stock to be issued under Section 1.02(b) until the number of shares of Series B Stock
that would otherwise be issued under Section 1.02(b) is reduced to zero;


 


(II)          Then,
reduce the number of shares of Common Stock and number of shares of Series A Stock that would otherwise be issued under Section
1.02(b), pro rata on the basis of the deemed value of such shares ($10.00 and $25.00, respectively).


 


(B)          The
Transaction Shares held in the Escrow Account in accordance with Section 5.03(b)(vii)(A) shall be released on the date that is
one year after the Closing Date as follows:


 


(1)          If
the Subject Liens are released in full, then the number of the Transaction Shares that remain in the Escrow Account, after giving
effect to the reduction described under Section 5.03(b)(vii)(A)(2), shall be released and delivered as provided in Section 1.02(a),
however, any Escrowed Shares shall remain in the Escrow Account and be subject to the provisions of Section 5.03(b)(iii); or


 


(2)          If
the Subject Liens are not released in full, then the Transaction Shares held in Escrow shall be released and delivered to the
REIT for cancellation.


 


(c)          In
addition to the escrow provisions set forth in this Section 5.03, the Transaction Shares shall be held in the Escrow Account and
subject to the terms of the Escrow Agreement and subject to transfer and assignment to the REIT to implement the provisions of
Section 1.02(b)(iii). The Transaction Shares will be released from the Escrow Account to the extent required to transfer shares
as contemplated by Section 1.02(b)(iii).


 


Section
5.04     Standstill.


 


(a)          Each
Seller Party and their Affiliates (as defined under the Securities Act) agree to not, directly or indirectly:


 


(i)           bid,
or acquire any interest in any claim in the Bankruptcy Case or


 






    30 


     


    

 


(ii)          take
any action to manage or provide any advisory services to any individual or entity with any interest in any claim in the Bankruptcy
Case with respect to any claim in the Bankruptcy Case that is adverse to the position of the Sold Entity in the Bankruptcy Case.


 


Section
5.05     Waiver of Attorney Client Privilege. Each of the Sellers hereby provides for the benefit of REIT a waiver of
attorney client privilege to the extent reasonably requested by the REIT with respect to each counsel representing such Seller
or any affiliate of the Seller in connection with the Bankruptcy Case, including the request to provide a copy of all client documents
requested from time to time by the REIT with respect to the Subject Property. The REIT may provide a copy of this Agreement or
this provision to any such counsel. Each Seller will provide any additional confirmation to any such counsel as requested by the
REIT.


 


		VI.	CONDITIONS;
                                         ABANDONMENT AND TERMINATION



 


Section
6.01     Rights of the REIT. The REIT shall have the right to abandon the transactions contemplated by this Agreement
or terminate this Agreement at any time or for any reason or no reason at the discretion of the REIT, in its sole and absolute
discretion, if any of the following conditions shall not be true or shall not have occurred, as the case may be, as of the specified
date or dates:


 


(a)          Approval
of the Seller Parties. All actions, proceedings, instruments, and documents required by FC RETI, FC OPCO and T-9 Developers
to carry out this Agreement or incidental thereto and all other related legal matters shall be subject to the reasonable approval
of counsel to the REIT, and each Seller Party shall have furnished such counsel such documents as such counsel may have reasonably
requested for the purpose of enabling them to pass upon such matters.


 


(b)          Legal
Proceedings. At the Closing Date, there shall not be pending any legal proceeding relating to, or seeking to prohibit or otherwise
challenge the consummation of, the transactions contemplated by this Agreement, or to obtain substantial damages with respect
thereto.


 


(c)          Laws.
As of the Closing Date, there shall not have been any action taken, or any law, rule, regulation, order, judgment, or decree proposed,
promulgated, enacted, entered, enforced, or deemed applicable to the transactions contemplated by this Agreement by any federal,
state, local, or other governmental authority or by any court or other tribunal, including the entry of a preliminary or permanent
injunction, which, in the reasonable judgment of the REIT, (i) makes this Agreement, or any of the transactions contemplated by
this Agreement illegal, (ii) results in a delay in the ability of Seller to consummate the transactions contemplated by this Agreement,
(iii) imposes material limitations on the ability of the REIT effectively to exercise full rights of ownership of the Subject
Property, or (v) otherwise prohibits, restricts, or delays consummation of the transactions contemplated by this Agreement or
materially impairs the contemplated benefits to the REIT of this Agreement, or any of the transactions contemplated by this Agreement.


 


(d)          Third
Party Approvals.


 


(i)          The
parties to this Agreement shall have made all required filings with governmental authorities and shall have obtained at or prior
to the Closing Date all required written approvals to this Agreement and to the execution, delivery, and performance of this Agreement
by each of them of relevant governmental authorities having jurisdiction over any Seller Party or the Sold Entity or any Seller
Entity Subsidiary or the subject matter of this Agreement.


 






    31 


     


    

 


(ii)          The
parties to this Agreement shall have obtained at or prior to the Closing Date all consents required for the consummation of the
transactions contemplated by this Agreement from any unrelated third party to any contract, agreement, instrument, lease, license,
arrangement, or understanding to which any of them is a party, or to which any of them or any of their respective businesses,
properties, or assets are subject.


 


(e)          No
Change. There shall not be any change in the Subject Property or any of the rights or obligations with respect thereto that
is or are materially different from the facts and circumstances and conclusions of the REIT’s due diligence review of the
Subject Property.


 


(f)          Information
for the Registration Statement. The REIT shall be satisfied that the information provided by any of the Sellers for inclusion
in the Registration Statement satisfies the requirements of Section 10 of the Securities Act.


 


(g)          Representations
and Warranties. The representations and warranties of the Seller Parties shall be true and correct in all material respects.


 


Section
6.02     Rights of the Seller Parties. Each Seller Party shall have the right to abandon the transactions contemplated
by this Agreement or terminate this Agreement at any time or for any reason or no reason at the discretion of Seller, in its sole
and absolute discretion, if the Closing has not occurred on or prior to September 30th, 2018 or such other date as agreed by Seller
and the REIT. prior to the Closing Date if any of the following conditions shall not be true or shall not have occurred:


 


(a)          Approval
of REIT. All actions, proceedings, instruments, and documents required by the REIT and OPCO to carry out this Agreement or
incidental thereto and all other related legal matters shall be subject to the reasonable approval of counsel to the Seller Parties,
and the REIT shall have furnished such counsel such documents as such counsel may have reasonably requested for the purpose of
enabling them to pass upon such matters.


 


(b)          Legal
Proceedings. At the Closing Date, there shall not be pending any legal proceeding relating to, or seeking to prohibit or otherwise
challenge the consummation of, the transactions contemplated by this Agreement, or to obtain substantial damages with respect
thereto.


 


(c)          Laws.
As of the Closing Date, there shall not have been any action taken, or any law, rule, regulation, order, judgment, or decree proposed,
promulgated, enacted, entered, enforced, or deemed applicable to the transactions contemplated by this Agreement by any federal,
state, local, or other governmental authority or by any court or other tribunal, including the entry of a preliminary or permanent
injunction, which, in the reasonable judgment of the Seller Parties, (i) makes this Agreement, or any of the transactions contemplated
by this Agreement illegal, (ii) results in a delay in the ability of Seller Parties to consummate the transactions contemplated
by this Agreement, or (iii) otherwise prohibits, restricts, or delays consummation of the transactions contemplated by this Agreement
or materially impairs the contemplated benefits to the Seller Parties of this Agreement, or any of the transactions contemplated
by this Agreement.


 


(d)          Third
Party Approvals. All required written approvals to this Agreement and to the execution, delivery, and performance of this
Agreement by the REIT and OPCO have been obtained.


 






    32 


     


    

 


(e)          Representations
and Warranties. The representations and warranties of the REIT and OPCO shall be true and correct in all material respects.


 


Section
6.03     Effect of Abandonment. If the transactions contemplated by this Agreement are abandoned or this Agreement is
terminated as provided for in Article VI, this Agreement shall forthwith become wholly void and of no further force or effect
without liability on the part of either party to this Agreement or on the part of any officer, director, controlling person (if
any), employee, counsel, agent, or stockholder or partner thereof.


 


		VII.	MISCELLANEOUS



 


Section
7.01     Further Actions. At any time and from time to time, each party agrees to take such actions and to execute and
deliver such documents as may be reasonably necessary to effectuate the purposes of this Agreement. Whenever the consent, approval
or acceptance of any party to this Agreement is required or permissible hereunder, unless expressly provided to the contrary,
such consent, approval or acceptance shall not be unreasonable withheld, conditioned or delayed.


 


Section
7.02     Notices. Any and all notices or other communications or deliveries required or permitted to be provided hereunder
shall be in writing and shall be deemed given and effective on the earliest of: (a) the date of transmission, if such notice or
communication is delivered via facsimile at the facsimile number set forth on the signature pages attached hereto at or prior
to 5:30 p.m. (New York City time) on a business day, (b) the next business day after the date of transmission, if such notice
or communication is delivered via facsimile at the facsimile number set forth on the signature pages attached hereto on a day
that is not a business day or later than 5:30 p.m. (New York City time) on any business day, (c) the second (2nd) business
day following the date of delivery to a United States internationally recognized overnight courier service, or (d) upon actual
receipt or refusal by the party to whom such notice is required to be given. The address for such notices and communications shall
be as set forth on the signature pages attached hereto. For the purposes herein, “business day” means a day
on which the Federal Reserve Bank of New York is open for regular business.


 


Section
7.03     Availability of Equitable Remedies. Since a breach of the provisions of this Agreement could not adequately
be compensated by money damages, any party shall be entitled, either before or after the Closing Date, in addition to any other
right or remedy available to it, to seek an injunction restraining such breach or threatened breach and to seek specific performance
of any such provision of this Agreement, and, in either case, no bond or other security shall be required in connection therewith.


 


Section
7.04     Modification. This Agreement sets forth the entire understanding of the parties with respect to the
subject matter hereof and supersedes all existing agreements among them concerning such subject matter. This Agreement shall only
be modified by the written agreement of all parties.


 






    33 


     


    

 



Section
7.05     Waiver. Any waiver by any party of a breach of any term of this Agreement shall not operate as or be construed
to be a waiver of any other breach of that term or of any breach of any other term of this Agreement. The failure of a party to
insist upon strict adherence to any term of this Agreement on one or more occasions will not be considered a waiver or deprive
that party of the right thereafter to insist upon strict adherence to that term or any other term of this Agreement. Any waiver
must be in writing and be authorized by a resolution of the Board of Directors or by an officer of, or other authorized person
with respect to, the waiving party.


 


Section
7.06     Binding Effect. The provisions of this Agreement shall be binding upon and inure to the benefit of the parties
and their respective successors and assigns.


 


Section
7.07     No Third-Party Beneficiaries. Except as otherwise expressly provided in this Agreement, this Agreement does
not create, and shall not be construed as creating, any rights enforceable by any person not a party to this Agreement.


 


Section
7.08     Headings. The headings in this Agreement are solely for convenience of reference and shall be given no effect
in the construction or interpretation of this Agreement.


 


Section
7.09     Governing Law.


 


(a)          Maryland
Law. All questions concerning the construction, validity, enforcement and interpretation of this Agreement shall be governed
by and construed and enforced in accordance with the internal laws of the State of Maryland. Each party agrees that all legal
proceedings concerning the interpretations, enforcement and defense of the transactions contemplated by this Agreement (whether
brought against a party hereto or its respective affiliates, directors, officers, shareholders, partners, members, employees or
agents) shall be, except to the extent otherwise required by applicable law, commenced exclusively in the state and federal courts
sitting in the City of New York. Each party hereby irrevocably submits to the exclusive jurisdiction of the state and federal
courts sitting in the City of New York, Borough of Manhattan for the adjudication of any dispute hereunder or in connection herewith
or with any transaction contemplated hereby or discussed herein (including with respect to the enforcement of any provision of
this Agreement), and hereby irrevocably waives, and agrees not to assert in any suit, action or proceeding, any claim that it
is not personally subject to the jurisdiction of any such court, that such suit, action or proceeding is improper or is an inconvenient
venue for such proceeding.


 


(b)          Service
of Process. Each party hereby irrevocably waives personal service of process and consents to process being served in any such
suit, action or proceeding by mailing a copy thereof via registered or certified mail or overnight delivery (with evidence of
delivery) to such party at the address in effect for notices to it under this Agreement and agrees that such service shall constitute
good and sufficient service of process and notice thereof. Nothing contained herein shall be deemed to limit in any way any right
to serve process in any other manner permitted by law.


 


(c)          Attorney’s
Fees. If one or more parties shall commence an action, suit or proceeding to enforce any provision of this Agreement, the
prevailing party or parties in such action, suit or proceeding shall be reimbursed by the other party or parties to such action,
suit or proceeding for the reasonable attorneys’ fees and other costs and expenses incurred by the prevailing party or parties
with the investigation, preparation and prosecution of such action, suit or proceeding.


 






    34


     


    

 


(d)          Limitation
on Remedies. Notwithstanding any provision contained herein to the contrary, in no event shall any party to this Agreement
be entitled to bring an action or claim against any other party to this Agreement for punitive, special, consequential, benefit
of the bargain or lost profits damages it being expressly acknowledged and agreed to by the parties hereto that any Loss or other
costs, claims, damages, expenses, losses or liabilities for which a party is entitled to pursue under this Agreement, including,
without limitation, based upon a right of indemnification, shall be limited to reasonable and actual compensatory damages and
related costs and expenses.


 


Section
7.10     WAIVER OF JURY TRIAL. IN ANY ACTION, SUIT, OR PROCEEDING IN ANY JURISDICTION BROUGHT BY ANY PARTY AGAINST ANY
OTHER PARTY, THE PARTIES EACH KNOWINGLY AND INTENTIONALLY, TO THE GREATEST EXTENT PERMITTED BY APPLICABLE LAW, HEREBY ABSOLUTELY,
UNCONDITIONALLY, IRREVOCABLY AND EXPRESSLY WAIVES FOREVER TRIAL BY JURY.


 


Section
7.11     Execution. This Agreement may be executed in two or more counterparts, all of which when taken together shall
be considered one and the same agreement and shall become effective when counterparts have been signed by each party and delivered
to each other party, it being understood that the parties need not sign the same counterpart. In the event that any signature
is delivered by facsimile transmission or by e-mail delivery of a “.pdf” format data file, such signature shall create
a valid and binding obligation of the party executing (or on whose behalf such signature is executed) with the same force and
effect as if such facsimile or “.pdf” signature page were an original thereof.


 


Section
7.12     Severability. If any term, provision, covenant or restriction of this Agreement is held by a court of competent
jurisdiction to be invalid, illegal, void or unenforceable, the remainder of the terms, provisions, covenants and restrictions
set forth herein shall remain in full force and effect and shall in no way be affected, impaired or invalidated, and the parties
hereto shall use their commercially reasonable efforts to find and employ an alternative means to achieve the same or substantially
the same result as that contemplated by such term, provision, covenant or restriction. It is hereby stipulated and declared to
be the intention of the parties that they would have executed the remaining terms, provisions, covenants and restrictions without
including any of such that may be hereafter declared invalid, illegal, void or unenforceable.


 


Section
7.13     Certain Defined Terms.


 


(a)          “Affiliate”
shall have the meaning ascribed to such term under the regulations promulgated under the Securities Act.


 


(b)          “Material
Adverse Effect” means any circumstance, change in, or effect on the Business, the specified Person (on a consolidated
or combined basis to the extent applicable) and any of the following events or transactions shall be deemed to be material:


 


(i)          Constitutes
a payment of cash or loss in value that is $50,000 or more;


 






    35


     


    

 


(ii)          Would
adversely affect the ability of the specified Person to operate or conduct its business in the manner in which it is currently
operated or conducted by such Person or has been operated since January 1, 2018;


 


(iii)          With
respect to any Seller:


 


(A)          Creates
or permits a Lien on the Sold Interests (other than the Subject Liens);


 


(B)          That
is, or would reasonably be expected to be, materially adverse to the business, operations, assets or liabilities, employee relationships,
customer or supplier relationships, results of operations or the financial condition of the Sold Entity or any Sold Entity Subsidiary


 


(C)          would
require the consent of the debtor in the Bankruptcy Case,


 


(c)          “Material
Contracts” means any agreement regarding the Underlying Property that:


 


(i)          provides
for consideration in the aggregate or during any calendar year of $50,000 or more;


 


(ii)          provides
for any Lien on any of the Sold Interests or any of the Underlying Property;


 


(iii)          was
entered into by any Seller, the Sold Entity or any Sold Entity Subsidiary and would requirement the payment or assumption by the
REIT or nay of its subsidiaries at any time from and after the Closing; or


 


(iv)          restricts
any Seller in the right or authority to sell, transfer or convey the Sold Interests; or


 


(v)          is
the subject of a claim in the Bankruptcy Case.


 




    36


     


    

 


IN
WITNESS WHEREOF, this Agreement has been executed by duly authorized individuals on behalf of each of the parties hereto as
of the date first above written.


 


SELLERS


 


T-9
Developers, LLC


 





	By:	/s/
    Steve Goodwin	 
	 	Name: Steve Goodwin	 
	 	Title: Manager	 







 


First
Capital Real Estate Operating Partnership, LP,





	 	By:	First Capital Real Estate
    Trust Incorporated,	 
	 	 	Its General Partner	 


 





	 	By:	/s/
    Suneet Singal	 
	 	 	Name: Suneet Singal	 
	 	 	Title: Chairman & Chief Executive Officer	 







 


First
Capital Real Estate Trust Incorporated





 


	By:	/s/
    Suneet Singal	 
	 	Name: Suneet Singal	 
	 	Title: Chairman & Chief Executive Officer	 


 


[Signatures
Continued on the Next Page]






 




     


     


    

 


GADSDEN GROWTH PROPERTIES, INC.,


a Maryland corporation


 


	By:	 	 
	 	Name:	 
	 	Title:	 





 


GADSDEN GROWTH PROPERTIES, L.P.,

a Delaware limited partnership


 





	By:	Gadsden Growth Properties, Inc.,	 
	 	its general partner	 







 





	 	By:	 	 
	 	 	Name:	 
	 	 	Title:	 


 



 




     


     


    

Annex
A


 


	Defined
    Term	Section
	“363
    Sale”	Section
    1.02(b)(iii)
	“Agreement”	Preamble
	“Bankruptcy
    Case”	Section
    2.02(a)
	“Bankruptcy
    Court”	Section
    2.02(a)
	“Breaking
    Ground”	Section
    1.02(e)
	“business
    day”	Section
    7.02
	“Closing
    Date”	Section
    3.01
	“Closing”	Section
    3.01
	“Code”	Section
    4.01(k)
	“Common
    Stock”	Recitals
	“Convertible
    Security”	Section
    4.01(b)
	“Earn
    Out Agreement”	Section
    1.02(e)
	“Environmental
    Laws”	Section
    4.01(n)
	“ERISA”	Section
    4.01(l)
	“Escrow
    Account”	Section
    5.03(a)
	“Escrow
    Agreement”	Section
    5.03(a)
	“Escrowed
    Shares”	Section
    5.03(b)
	“Exchange
    Act Filing”	Recitals
	“Exchange
    Act”	Recitals
	“Expected
    Mortgage Amount”	Recitals
	“First
    Release Date”	Section
    5.03(b)(iii)
	“First
    Revenues”	Section
    1.02(e)
	“GAAP”	Section
    4.01(e)
	“Gadsden
    Bylaws”	Section
    4.02(a)
	“Gadsden
    Charter”	Section
    4.02(a)
	“Gadsden
    Disclosure Letter”	Section
    4.02
	“Gadsden
    Holdings”	Recitals
	“Gadsden
    Permits”	Section
    4.02(h)
	“Gadsden
    Realty Investments”	Recitals
	“Governmental
    Entity”	Section
    4.01(b)
	“Hazardous
    Materials”	Section
    4.01(n)
	“Indemnification
    Claim”	Section
    5.03(a)(i)(C)
	“Law”	Section
    4.01(b)
	“Liability”	Section
    4.01(g)
	“Liens”	Section
    1.01(b)
	“Liens”	Section
    1.01(b)
	“Loss”	Section
    5.03(b)(iii)
	“Maximum
    Seller Mortgage Amount”	Recitals
	“OPCO”	Preamble
	“Order”	Section
    4.01(b)



 






     


     


    

 


	Defined
    Term	Section



	“Override
    Escrow Provisions”	Section
    5.03(b)(vii)
	“Partnership
    Agreement”	Section
    1.03(a)
	“Person”	Recitals
	“Prior
    Registration Statement”	Section
    4.02(o)
	“Purchase
    Price”	Section
    1.02(a)
	“Registration
    Statement”	Recitals
	“REIT
    Indemnified Party”	Section
    5.03(a)
	“REIT”	Preamble
	“Release
    Date”	Section
    5.03(b)(iii)
	“Release
    Time”	Section
    5.01(a)
	“Sale”	Section
    1.01(a)
	“SEC”	Recitals
	“Second
    Release Date”	Section
    5.03(b)(iii)
	“Securities
    Act”	Recitals
	“Seller
    Bylaws”	Section
    4.01(a)
	“Seller
    Charter”	Section
    4.01(a)
	“Seller
    Disclosure Letter”	Section
    4.01
	“Seller
    Parties”	Recitals
	“Seller
    Permits”	Section
    4.01(i)
	“Seller”	Preamble
	“Series
    A Stock”	Section
    1.02(a)
	“Series
    B Stock”	Section
    1.02(a)
	“Sold
    Entity Subsidiary”	Recitals
	“Sold
    Entity”	Recitals
	“Sold
    Interests”	Section
    1.01(a)
	“Subject
    Liens”	Section
    1.01(b)
	“Subject
    Property Debt”	Recitals
	“Subject
    Property”	Recitals
	“Tax
    Returns”	Section
    4.01(k)
	“Taxes”	Section
    4.01(k)
	“Transaction
    Shares”	Recitals
	“Underlying
    Property”	Recitals


 


    Annex A: Page ii


     


    

 


Schedule
1.01(b)


 


Description
of the Subject Liens


 


Any
Liens on the Sold Interests including the judgment of Cabot Lodge Securities LLC and the claim by Presidential Realty Operating
Partnership LP or Presidential Realty Corporation as to any right own or have rights under any of the Sold Interests and including
any failure of the authority of a Seller to sell, transfer and convey good title without Liens on the Sold Interests.


 




     


     


    

 


Schedule
1.02


 


To
be provided by the Sellers in form and substance reasonably acceptable to the REIT. The Transaction Shares will not be issued
until the Sellers so provide the schedule and the payment direction letter referred to in Section 1.02(a).


 




     


     


    




 





	Schedule
    1.05	 	 
	 	 	 
	Certain
    Payables by Capital Station that are Released on the Closing Date
	[attached hereto]	 	 
	 	 	 
	Capital Station
    65, LLC	 	 
	Due to Affiliates	 	 
	 	 	 
	Due to FC REIT	 	 
	Pool Maintenance	 	8,700.00
	Garbage	 	425.93
	Filing Fees	 	1,600.00
	General Maintenance	 	8,900.00
	Cash Advances -
    Operating Expense	 	200,000.00
	 	Total	219,625.93
	 	 	 
	Due to FC OP	 	 
	Acquisition Fee	 	719,072.00
	Financing Fee	 	359,881.44
	Asset Management
    Fee	 	1,027,467.10
	Refinance	 	155,030.00
	Insurance	 	28,508.67
	Legal / Chapter
    11	 	331,980.71
	Cash Advances -
    Operating Expense	 	1,057,682.42
	 	Total	3,679,622.34
	 	 	 
	Due
    to 2520 Tilden Fee, LLC	 	 
	Refinance	 	15,030.00
	Insurance	 	20,184.36
	 	Total	35,214.36
	 	 	 
	Due
    to First Capital Real Estate Investments	 
	Cash Advance	 	4,059.47
	 	Total	4,059.47
	 	 	 
	 	Grand Total	3,938,522.10


 




     


     


    

 


Schedule
2.02





Other
Permitted Liens





None


 




     


     


    

 


Disclosure
Schedules of the Seller


 


Section
4.01(a) 


Jurisdictions
of Seller Parties


 


California


 


New
York


 


Section
4.01(c)(v)(A)





Seller
consents and approvals that are required


 


None.


 


Section
4.01(g)





Other
Liabilities


 


None


 


Section
4.01(j)





Litigation


 


None


 


Section
4.01(k)





Taxes


 


None


 


Section
4.01(n)





Environmental
Matters


 


None


 


Section
4.01(p)(i)





Material
Contracts 


As
disclosed in the filings in the Bankruptcy Case


 




     


     


    

Gadsden
Disclosure Schedule


 


Section
4.02(a)





Jurisdictions
of the REIT and OPCO 


Arizona


 


Section
4.02(i)





Litigation


 




     


     


    

 


Exhibit
I


 


Certain
Information Regarding the Subject Property Debt





As
disclosed in the disclosure schedules on file in the Bankruptcy Case.


 




     


     


    

 


Exhibit
II


 


Form
of Escrow Agreement 


[Attached
hereto]