Document:

Exhibit 10.2

 

INTEREST CONTRIBUTION AGREEMENT

 

by and among

 

SIAMAK KOHANOFF

 

FIRST CAPITAL REAL ESTATE TRUST INCORPORATED

 

and

 

FIRST CAPITAL REAL ESTATE OPERATING PARTNERSHIP,
LP

 

September 13, 2016

 

     

     

    

 

CONTRIBUTION AGREEMENT

 

This CONTRIBUTION AGREEMENT
dated as of September 13, 2016 (this “Agreement”), is made and entered into among SIAMAK KOHANOFF (the
“Contributor”), FIRST CAPITAL REAL ESTATE OPERATING PARTNERSHIP, L.P. (“FCRE OP”)
and FIRST CAPITAL REAL ESTATE TRUST INCORPORATED (“FCRE” and together with FCRE OP, each individually
referred to herein as an “FC Party” and collectively referred to herein as the “FC Parties”).
The Contributor and each of the FC Parties may individually be referred to herein as a “Party” or collectively
as the “Parties”.

 

RECITALS

 

WHEREAS, FCRE OP is
the operating partnership of FCRE. FCRE is engaged in the business of investing in interests in real estate. FCRE has been organized
and operated to qualify as a real estate investment trust (a “REIT”) under Sections 856 through 860 of the Internal
Revenue Code of 1986, as amended (the “Code”). FCRE holds all or substantially all of its properties and assets
through FCRE OP, its operating partnership;

 

WHEREAS, the Contributor
is the owner of 31.00% of the limited liability company interests in United 2520 Tilden, LLC, a Delaware limited liability company
(“Holdings” with the interest held by the Contributor referred to herein as the “Assigned Interest”);

 

WHEREAS, Holdings is
the owner of 100% of the limited liability company interests in 2520 Tilden Fee, LLC, a Delaware limited liability company (“Tilden
Fee”);

 

WHEREAS Tilden Fee
is the direct owner of 100% of the fee simple interest in that certain property located at 2520 Tilden Ave, Brooklyn, NY 11226
and improvements thereon (the “Contributed Property”);

 

NOW, THEREFORE, in
consideration of the foregoing recitals, the Parties acknowledge the adequacy of the consideration provided to each through their
respective representations, warranties, covenants and agreements and promises contained in this Agreement, as well as other good
and value consideration, and, intending to be legally bound, agree as provided below.

 

Article
I.

CONTRIBUTION AND SALE

 

1.1           Recitals.
The recitals above are incorporated into this Agreement and are hereby acknowledged to be true and correct.

 

1.2           Intentionally
Omitted.

 

1.3           Contribution.
At the Closing and on the terms and subject to the conditions contained in this Agreement:

 

(a)          The
Contributor hereby agrees to assign, set over, and transfer to FCRE OP, absolutely and unconditionally, and free and clear of all
Liens, all of their right, title and interest in and to Holdings and the Contributed Property, in exchange for the consideration
set forth in Section 1.4(a), and FCRE OP hereby agrees to accept such assignment by the Contributor in the form of the assignment
set forth in Exhibit “A” attached hereto.

 

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(b)          all
of the foregoing references to transfer of interests “free and clear of all Liens” shall refer to the membership interests,
but not the underlying real estate.

 

1.4           Considertion.
At the Closing and on the terms and subject to the conditions contained in this Agreement, the Contributor hereby irrevocably
agrees to accept, in exchange for the Assigned Interests:

 

(a)          FOUR
HUNDRED THIRTY THOUSAND FOUR HUNDRED FORTY THREE (430,443) units of limited partnership interest (“OP Units”
with the OP Units issued hereunder referred to as the “Tilden Units” or the “Securities”)
in FCRE OP free and clear of all liens and encumbrances, without any right of redemption except as set forth in Section 1.7,
and valued at SIX MILLION NINE HUNDRED THOUSAND AND ONE DOLLARS and 29/100 ($6,900,001.29) based on a per OP Unit value of $16.03
(the “Issuance Price”); and

 

(b)          Cash
Payment.  ONE MILLION DOLLARS AND 00/100 ($1,000,000.00) in immediately available funds (the “Cash Payment”)
wired to Contributor’s account at Wells Fargo Bank; ABA: 121042882; Account# 1039093529.

 

1.5           Issuance
of Securities. At the Closing and on the terms and subject to the conditions contained in this Agreement, FCRE OP shall issue
the Securities free and clear of all liens and encumbrances, without any right of redemption except as set forth in Section
1.7, to be allocated as designated by the Contributor in Schedule 1.5 hereto.

 

1.6           Treatment
as a Contribution.

 

(a)          Any
sale by the Contributor of the Contributed Property are each intended to be governed by Section 721(a) of the Code.

 

(b)          The
Parties hereto acknowledge and agree to the tax treatment described in this Section 1.6, and shall all file their respective
Tax Returns consistent with such treatment, unless otherwise required by applicable Law.

 

1.7           Rights
of Redemption

 

Notwithstanding anything
to the contrary contained in this Agreement, any of the other agreements in connection with this transaction and the limited partnership
agreement of FCRE OP (the “Partnership Agreement”):

 

(a)          With
seven (7) Business Days prior written request to FCRE OP by Contributor, Contributor shall have the right to redeem the Tilden
Units under the following terms and conditions:

 

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(i)          Contributors
right to request redemption of the Tilden Units pursuant to this Section 1.8 shall commence on April 1, 2017;

 

(ii)         Contributor
shall not redeem more than ONE HUNDRED SEVEN THOUSAND SIX HUNDRED ELEVEN (107,611) OP Units in any one fiscal quarter; and

 

(iii)        FCRE
OP shall be obligated to provide cash consideration for each OP Unit being redeemed pursuant to this Section 1.8 at the Issuance
Price.

 

(b)          FCRE
OP shall have the right, in its sole discretion and without penalty, at any time and from time to time to force the redemption
of some or all of the Tilden Units and FCRE OP shall be obligated to provide consideration to the Contributor for each OP Unit
being redeemed in an amount equal to the Issuance Price.

 

1.8           Distributions
with respect to the FC OP Units. 

 

Notwithstanding anything
to the contrary contained in this Agreement, any of the other agreements in connection with this transaction and the Partnership
Agreement, distributions shall be paid by FCRE OP to the holders of the Tilden Units, with respect to the Tilden Units, on the
first of each month following the Closing Date in an amount equal to a seven percent (7%) per annum yield on each outstanding Tilden
Unit (the “Monthly Yield Payment”). For the purposes of determining the Monthly Yield Payment, each outstanding
Tilden Unit shall be valued at the Issuance Price.

 

1.9           Conversion
of OP Units. 

 

Notwithstanding anything
to the contrary contained in this Agreement, any of the other agreements in connection with this transaction and the Partnership
Agreement, the holders of the Tilden Units shall have no right to convert the Tilden Units to common shares in FCRE until the earlier
to occur of: (i) the listing of FCRE on a national stock exchange; or (ii) the sale of all or substantially all of the assets of
FCRE (collectively, the “Conversion Event”). From and after the Conversion Event, any Holder of any of the Tilden Units
shall have the right to convert their OP Units into shares of common stock of FCRE at an exchange ratio of one share of FCRE common
stock for one OP Unit.

 

Article
II.

CLOSING

 

2.1           Closing.
The closing of the transaction contemplated by this Agreement (the “Closing”) shall be deemed to have occurred
as of the date first written above (the “Closing Date”). Upon execution of this Agreement, the conditions to
closing as set forth in Article V hereof shall be deemed to have been met or waived by each of the Parties. The Parties and their
representatives may participate in the Closing by electronic means and electronic delivery of signed documents. The Closing shall
be deemed to occur as of midnight at the end of the Closing Date.

 

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2.2           Closing
deliveries by the Contributor. At the Closing, the Contributor (except as otherwise provided below) will deliver or cause to
be delivered to FCRE OP each of the following agreements, instruments and other documents:

 

(a)          with
respect to the Assigned Interest, a duly executed instrument of assignment in the form attached hereto as Exhibit A;

 

(b)          with
respect to the Contributor, a duly executed joinder to the Partnership Agreement as set forth in each certificate of OP Units in
the form attached hereto as Exhibit B (each a “Joinder”);

 

(c)          
with respect to the Contributor, a duly completed and executed certificate pursuant to Treasury Regulation section 1.1445-2(b)(2)
certifying that the Contributor is not a “foreign person” within the meaning of Code section 1445 (each a “FIRPTA
Affidavit”);

 

(d)          any
and all other instruments and documents required to be delivered by the Contributor at or prior to the Closing pursuant to and
in accordance with any of the other provisions of this Agreement, and such other documents or instruments as FCRE OP may reasonably
request to effect any of the transactions contemplated hereby.

 

2.3           Closing
Deliveries by FCRE OP and FCRE. At the Closing, FCRE OP and FCRE will deliver or cause to be delivered, to the Contributor
each of the following agreements, instruments and other documents:

 

(a)          certificates
evidencing the approval of the issuance of the Tilden Units to be issued by FCRE OP to the Contributor to receive Securities hereunder
registered in the name designated by the Contributor;

 

(b)          a
duly executed counterpart of each Joinder;

 

(c)          any
and all other instruments and documents required to be delivered by FCRE OP, FCRE or FCREI at or prior to the Closing pursuant
to and in accordance with any of the other provisions of this Agreement, and such other documents or instruments as the Contributor
may reasonably request to effect any of the transactions contemplated hereby;

 

(d)          the
Cash Payment; and

 

(e)          the
payment of amounts outstanding due Contributor pursuant to Section 6.1(b)(i) of the Operating Agreement for Holdings as of the
Closing Date in the amount of TWO HUNDRED EIGHT THOUSAND SEVEN HUNDRED FIFTY and 00/100 DOLLARS ($208,750.00).

 

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Article
III.

REPRESENTATIONS AND WARRANTIES OF THE CONTRIBUTOR

 

3.1           The
Contributor hereby represents and warrants the accuracy of the preamble Recitals and hereby jointly and severally make the following
representations and warranties to the FC Parties as of the date hereof:

 

(a)          No
Brokers. Neither the Contributor or any of its Affiliates (the “Contributing Parties”) has or will have
any obligation to pay any brokerage fees or commissions, finder’s fee, advisory fees or other similar fees related to the
execution of this Agreement, any of the other documents executed in connection with the transaction contemplated by this Agreement
or the consummation of any of the transactions contemplated hereby or thereby (the “Transaction Documents”) and Contributor
shall indemnify, defend and hold harmless FCRE and FCRE OP from any responsibility, liability or obligation with respect thereto.

 

(b)          Compliance
with Laws. Except as expressly disclosed in a writing by the Contributing Parties to FCRE OP dated prior to, and received by
FCRE OP prior to, the date hereof, the Contributor has no knowledge that any portion of the Contributed Property is not in compliance,
in all material respects, with all applicable laws, ordinances, rules, regulations, codes, orders and statutes (including, without
limitation, those currently relating to fire safety, conservation, parking, Americans with Disabilities Act, zoning and building
laws) whether federal, state or local, except where the failure to so comply would not have a Material Adverse Effect. Compliance
with Environmental Laws is not addressed by this Section 3.1(b), but rather solely by Section 3.1(e).

 

(c)          Eminent
Domain. The Contributor has no knowledge of any existing or proposed or threatened condemnation, eminent domain or similar
proceeding, or private purchase in lieu of such a proceeding, in respect of all or any material portion of the Contributed Property.

 

(d)          Licenses,
Approvals, Entitlements and Permits. The Contributor has no knowledge whether the Contributed Property has the requisite licenses,
permits or other governmental approvals (including without limitation, all approvals and entitlements) required to be obtained
by the owner of any of the Contributed Property in connection with the permitting, approval, construction, use, occupancy, management,
leasing and operation of the Contributed Property, which includes notice that any licenses, permits or other governmental approvals
(including without limitation, all approvals and entitlements) have not been obtained and are not in full force and effect or are
not good standing.

 

(e)          Environmental
Compliance. Except as expressly disclosed in a writing by the Conrtibutor to FCRE OP dated prior to, and received by FCRE OP
prior to, the date hereof, the Contributor has no knowledge whether Holdings has received notice that any portion of the Contributed
Property is not in compliance with any Environmental Laws and Environmental Permits, except where the failure to so comply would
not have a Material Adverse Effect. The Contributor has not received any written notice from the United States Environmental Protection
Agency or any other federal, state, county or municipal entity or agency that regulates Hazardous Materials or public health risks
or other environmental matters or any other private party or Person claiming any current violation of, or requiring current compliance
with, any Environmental Laws or Environmental Permits or demanding payment or contribution for any Release or other environmental
damage in, on, under, or upon the Contributed Property. The Contributor has not been made aware of any litigation or investigation
that is pending with respect to Hazardous Materials located in, on, under or upon the Contributed Property, and to the best of
Contributor’s knowledge no such litigation or investigation has been threatened in writing in the last twelve months by any
Governmental Entity or any third party.

 

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(f)          Zoning.
The Contributor has no knowledge whether Holdings has received (a) any written notice (which remains uncured) from any Governmental
Authority stating that any part of the Contributed Property is currently violating any zoning, land use, development agreement
or other similar rules or ordinances in any material respect, or (b) any written notice of any pending or threatened proceedings
for the rezoning (i.e., as opposed to the current zoning) of any of the Contributed Property or any portion thereof except, in
each case as would not have a Material Adverse Effect, and the Contributor knows of no event or circumstance which currently exists,
or which, with the passage time may exist, which would in any way negate or subject the Contributed Property to lose or be divested
of any Approvals or Entitlements.

 

(g)          Additional
Representations. The Contributor hereby make the following additional representations and Warranties in favor of the FC Parties:

 

(i)          The
Contributor has not received notice of any proceedings at law or in equity before any court, grand jury, administrative agency
or other investigative agency, bureau or instrumentality of any kind pending or threatened, against or affecting the Contributed
Property or the Contributor that (i) involve, or in any way may affect, the validity or enforceability of this Agreement or any
other instrument or document to be delivered by the Contributor pursuant hereto, (ii) enjoin or prevent or threaten to enjoin or
prevent the performance of the Contributor’s obligations hereunder or (iii) relate specifically to the Assigned Interest,
the Contributed Property or the title thereto; and there is no other pending or threatened litigation, governmental investigation
or administrative proceeding affecting the the Assigned Interest or to the best of Contributor’s knowledge, the Contributed
Property;

 

(ii)         The
Contributor is not a debtor under any bankruptcy or other insolvency law, or are in the hands of a receiver, nor is an application
for the appointment of a receiver pending; and none of the Contributing Parties have made an assignment for the benefit of creditors,
nor filed, or had filed against it, any petition in bankruptcy which is currently pending in any court;

 

(iii)        All
information and documents heretofore prepared and delivered by the Contributor to the FC Parties are true, complete and accurate
in all material respects, and with respect to documents, are true, correct and complete copies thereof;

 

(h)          Condition
precedent. The truth, accuracy and completeness of each of the representations and warranties of the Contributor made in this
Agreement as of the date hereof, and as of the date of Closing, shall constitute a condition precedent to the obligations of the
FC Parties hereunder. Each such representation and warranty shall survive the Closing and the transfer of the Contributed Property
hereunder.

 

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3.2        The
Contributer makes the following representations and warranties to the FC Parties on a sole, separate and several basis as of the
date hereof:

 

(a)          Organization
and Authorization. The Contributor has all requisite power and authority to execute, deliver and perform its obligations under
this Agreement and any other of the Transaction Documents. The Contributor has taken all necessary action to authorize the execution,
delivery and performance of this Agreement and any of the other Transaction Documents. Upon the execution and delivery of any Transaction
Document to be executed and delivered by the Contributor, such Transaction Document shall constitute the valid and binding obligation
of the Contributor, enforceable against the Contributor in accordance with its terms, except as enforceability may be limited by
bankruptcy, insolvency, reorganization, moratorium or similar laws of general application affecting the rights and remedies of
creditors and general principles of equity.

 

(b)          Title
to the Assigned Interest. Contributor owns the Assigned Intrest free from all Liens.

 

(c)          Absence
of Defaults and Conflicts. With respect to each Contributing Party, neither the execution and delivery of this Agreement, any
Transaction Document, nor the consummation of any of the transactions contemplated hereby or thereby, nor compliance with or fulfillment
of the terms, conditions and provisions hereof or thereof will: (a) conflict with, result in a breach of the terms, conditions
or provisions of, or constitute a default, an event of default or an event creating rights of acceleration, termination or cancellation
or a loss of rights under, or result in the creation or imposition of any Lien upon Holdings or the Contributed Property, under
(i) any Organizational Documents of any Contributing Party, (ii) any agreement, document or instrument to which any Contributing
Party is a party or by which such Contributing Party or any of the Contributed Property or Holdings is or are bound, (iii) any
term or provision of any judgment, order, writ, injunction, or decree binding on any Contributing Party (or its assets or properties,
including the Contributed Property or Holdings), or (iv) any Laws applicable to such Contributing Party; or (b) require the approval,
consent, authorization or act of, or the making by such Contributing Party of any declaration, filing or registration with, any
Person.

 

(d)          FIRPTA.
No Contributing Party is a “foreign person” within the meaning of Code Section 1445(f)(3), and each Contributing Party
shall certify to that effect and certify its taxpayer identification number at Closing pursuant to Code Section 1445(b)(2).

 

(e)          No
Litigation. No Proceeding or Order is pending against or affecting the Contributor or its Assigned Interest(and, to the knowledge
of each Contributing Party, no such Proceeding or Order has been threatened in writing): (a) under any bankruptcy or insolvency
Law; (b) that seeks or could be reasonably likely to seek injunctive or other relief in connection with this Agreement, any of
the other Transaction Documents or the transactions contemplated hereby or thereby; or (c) that reasonably could be expected to
adversely affect (i) the performance by such Contributing Party under this Agreement or any other Transaction Document, or (ii)
the consummation of any of the transactions contemplated hereby or thereby.

 

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(f)          No
Consents Required. Except as shall have been satisfied on or prior to the Closing Date, no consent, waiver, approval or authorization
of, or filing with, any Person or Governmental Authority or under any applicable Laws is required to be obtained by any Contributing
Party in connection with the execution, delivery and performance of this Agreement and the transactions contemplated hereby, except
for those consents, waivers, approvals, authorizations or filings, the failure of which to obtain or to file would not have a Material
Adverse Effect.

 

(g)          Taxes.
Except as would not have a Material Adverse Effect, (a) all Tax Returns and reports required to be filed by the Contributor with
respect to the Assigned Interest, if any, have been timely filed (after giving effect to any filing extension properly granted
by a Governmental Authority having authority to do so) and all such returns and reports are accurate and complete in all material
respects, and all Taxes required to be paid by Contributor, if any, with respect to the Assigned Interest have been paid, and (b)
no deficiencies for any Taxes have been proposed, asserted or assessed against or on the Contributor with respect to the Assigned
Interest, and no requests for waivers of the time to assess any such Taxes are pending.

 

(h)          Tax
Matters. The Contributor represents and warrants that it has obtained from its own counsel advice regarding the tax consequences
of (a) the transfer of the Assigned Interest and the Contributed Property to FCRE OP and the receipt of OP Units, (b) the Contributing
Parties admission as a limited partner of FCRE OP, and (c) any other transaction contemplated by this Agreement. Each Contributing
Party further represents and warrants that it has not relied on FCRE OP, FCRE, or any of their Affiliates, representatives or counsel
for any tax advice and that it is not relying on any advice or any information or material furnished by such parties, whether oral
or written expressed or implied, of any nature whatsoever, regarding the tax consequences of the events and transactions set forth
in the preceding sentence.

 

(i)          Insurance.
The Contributing Parties have not received notice that any of the insurance policies affecting the Contributed Property is not
in full force and effect in all material respects. Holdings has not received from any insurance company any notices of cancellation
or intent to cancel any insurance with respect to the Contributed Property.

 

(j)          Investment
Representations.

 

(i)          The
Contributor acknowledges that the offering and issuance of the Securities to be acquired pursuant to this Agreement are intended
to be exempt from registration under the Securities Act and that FCRE OP’s and FCRE’s reliance on such exemptions is
predicated in part on the accuracy and completeness of the representations and warranties of the Contributor contained herein.
In furtherance thereof, the Contributor represents and warrants to FCRE OP and FCRE as follows:

 

1.          The
Contribuutor is an “accredited investor” (as such term is defined in Rule 501(a) of Regulation D promulgated under
the Securities Act).

 

2.          The
Contributor is acquiring the Securities solely for its own account for the purpose of investment and not as a nominee or agent
for any other Person and not with a view to, or for offer or sale in connection with, any distribution of any thereof in violation
of the federal securities Law.

 

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3.          The
Contributor is knowledgeable, sophisticated and experienced in business and financial matters and fully understands the limitations
on transfer imposed by the federal securities Law. The Contributor is able to bear the economic risk of holding the Securities
for an indefinite period and is able to afford the complete loss of its investment in the Securities; The Contributor has received
and reviewed all information and documents about or pertaining to FCRE OP and FCRE and the business and prospects of the FCRE OP
and FCRE and the issuance of the Securities as the Contributor deems necessary or desirable, and has been given the opportunity
to obtain any additional information or documents and to ask questions and receive answers about such information and documents,
the FCRE OP and FCRE and the business and prospects of FCRE OP and FCRE which the Contributor deems necessary or desirable to evaluate
the merits and risks related to its investment in the Securities; and the Contributor understands and has taken cognizance of all
risk factors related to the purchase of the Securities. The Contributor is relying upon its own independent analysis and assessment
(including with respect to taxes), and the advice of such Contributing Parties advisors (including tax advisors), and not upon
that of FCRE OP, FCRE or any of their Affiliates, for purposes of evaluating, entering into, and consummating the transactions
contemplated hereby.

 

(ii)         The
Contributor is fully aware that the Securities have not been registered with the SEC in reliance on the exemptions specified in
Regulation D under the Securities Act, which reliance is based in part upon the Contributing Parties representations set forth
herein. The Contributor understands that the Securities have not been registered under applicable state securities laws and are
being offered and sold pursuant to the exemptions specified in said laws, and unless they are registered, they may not be re-offered
for sale or resold except in a transaction or as a security exempt under those laws.

 

(k)          Exculpation
and Waiver of Claims.

 

(i)          Notwithstanding
the information and materials provided to or otherwise obtained by the Contributing Parties as described in this Section 3.2(k),
the Contributor understands and acknowledges that the FC Parties and their respective affiliates, officers, directors, partners,
members, employees and agents may be in possession of additional material non-public information about FCRE’s and FCRE OP’s
operations, prospects and strategic plans that has not been disclosed to the Contributing Parties or to their representatives in
connection with this Agreement. Therefore, the Contributor understands, acknowledges and agrees that any information in its possession
regarding FCRE and FCRE OP may be incomplete in whole or in part; provided, however, that the foregoing shall neither relieve the
FC Parties of their responsibilities and obligations pertaining to the representations and warranties expressly made by such parties
in this Agreement nor diminish the veracity or substantive effect of the same representations and warranties as expressly stated
in this Agreement or in connection with such fraud, intentional misrepresentations or willful misconduct by the FC Parties or any
of its officers, directors, partners, members and employees.

 

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(ii)         The
Contributor hereby irrevocably understands, acknowledges and agrees that it will not directly or indirectly institute, join any
person in instituting or take any action to directly or indirectly institute, any legal or other proceeding against FCRE, FCRE
OP or any of their affiliates, officers, directors, partners, members, employees or agents for any reason relating to, or seeking
damages or remedies (whether legal or equitable) with respect to this Agreement, an investment in the Securities or any of the
information that FCRE, FCRE OP or any of their affiliates, officers, directors, partners, members, employees, agents or representatives
has provided or omitted to provide to the Contributing Parties in connection with the this Agreement or otherwise, other than in
the case of any representation or warranty by FCRE or FCRE OP expressly set forth in this Agreement; provided, however, that except
as expressly provided above, the foregoing provisions shall not preclude or limit the rights and remedies available to Contributor
under and in accordance with the terms of this Agreement or his rights as a holder of OP Units in FCRE OP.

 

(iii)        The
Contributor understands, acknowledges and agrees that it is not relying upon representations and warranties of any Person, other
than representations and warranties of the FC Parties contained herein and in the other Transaction Documents, in making its investment
or decision to invest in the Securities.

 

(iv)        The
parties hereto acknowledge and agree that no individual, duly authorized and acting as an officer, director, partner, member, shareholder,
agent, consultant or employee on behalf of the Contributing Parties or the FC Parties, respectively, shall have any personal liability
arising from this Agreement or from the transactions contemplated by this Agreement except in connection with such individuals
fraud, intentional misrepresentations or willful misconduct.

 

Article
IV.

REPRESENTATIONS AND WARRANTIES OF FCRE OP
AND FCRE

 

FCRE OP and FCRE, jointly
and severally, hereby represent and warrant to the Contributor as follows:

 

4.1           Organization
and Authorization. Each of FCRE OP and FCRE is an entity duly organized, validly existing and in good standing in the state
of its organization. Each of FCRE OP and FCRE has all requisite entity power and authority to execute, deliver and perform its
obligations under this Agreement and any other Transaction Documents. Each of FCRE OP and FCRE has taken all necessary action to
authorize the execution, delivery and performance of this Agreement and any other Transaction Documents. Upon the execution and
delivery of any Transaction Documents to be executed and delivered by FCRE OP or FCRE, such Transaction Document shall constitute
the valid and binding obligation of FCRE OP or FCRE, enforceable against FCRE OP or FCRE in accordance with its terms, except as
enforceability may be limited by bankruptcy, insolvency, reorganization, moratorium or similar laws of general application affecting
the rights and remedies of creditors and general principles of equity. The person or persons executing and delivering this Agreement
or any other Transaction Document on behalf of FCRE OP or FCRE is and shall have been prior to the Closing Date, duly authorized
to execute and deliver such documents on behalf of FCRE OP or FCRE.

 

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4.2           No
Litigation. No Proceeding or Order is pending against or affecting FCRE and FCRE OP or property owned by any such parties (and,
to the knowledge of the FC Parties no such Proceeding or Order has been threatened in writing) (a) under any bankruptcy or insolvency
Law, (b) that seeks or could be reasonably likely to seek injunctive or other relief in connection with this Agreement, any of
the other Transaction Documents or the transactions contemplated hereby or thereby, or (c) that reasonably could be expected to
adversely affect (i) the performance by FCRE of FCRE OP under this Agreement or any other Transaction Document, or (ii) the consummation
of any of the transactions contemplated hereby or thereby.

 

4.3           No
Consents or Approvals. Except as shall have been satisfied on or prior to the Closing Date, no consent, waiver, approval or
authorization of, or filing with, any Person or Governmental Authority or under any applicable Laws is required to be obtained
by any of the FC Parties in connection with the execution, delivery and performance of this Agreement and the transactions contemplated
hereby, except for those consents, waivers, approvals, authorizations or filings, the failure of which to obtain or to file would
not have a Material Adverse Effect.

 

4.4           No
Violation. None of the execution, delivery or performance of this Agreement, any agreement contemplated hereby between the
Parties to this Agreement and the transactions contemplated hereby between the Parties to this Agreement does or will, with or
without the giving of notice, lapse of time, or both, violate, conflict with, result in a breach of, or constitute a default under
the organizational documents of FCRE or FCRE OP or any term or provision of any judgment, order, writ, injunction, or decree binding
on FCRE or FCRE OP.

 

4.5           Valid
Issuance of Securities. The OP Units to be issued to the Contributor pursuant to this Agreement have been duly authorized by
the FC Parties and, when issued against the consideration therefor, will be validly issued by FCRE OP, free and clear of all Liens
created by FCRE OP (other than Liens created by the Partnership Agreement).

 

4.6           REIT
Status. FCRE is a real estate investment trust properly formed under Section 856 through 860 of the Code.

 

4.7           Charter
Documents. FCRE has provided drafts of amendments to its Certificate of Incorporation and amendments to the governing charter
instruments of FCRE OP and each of its material subsidiaries reflecting a rebranding from United to First Capital. FCRE, FCRE OP
and each of its subsidiaries is in compliance with the provisions of its Certificate of Incorporation or equivalent governing charter
instrument.

 

(a)          Financial
Records. FCRE and FCRE OP have provided Contributor with the audited financials of FCRE and FCRE OP as of August 14, 2015,
the date of the filing of FCRE’s most recent quarterly report (collectively, the “Financial Records”).

 

(b)          Financial
Statements in Accordance with Books and Records; Fair Presentation. FCRE and FCRE OP hereby represent and warrant that the
financial statements provided are in accordance with the books and records of FCRE and FCRE OP, and fairly present the financial
condition of FCRE and FCRE OP as at the respective dates indicated.

 

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4.8           Information
Provided to Contributor. The financial statements, all financial data, organizational documents relating to the FC Parties
and their related entities, and all other documents and information heretofore delivered to the Contributor by or with respect
to the FC Parties in connection with the transactions contemplated by this Agreement or otherwise relating to the FC Parties, are
to the best knowledge of the FC Parties correct and complete in all material respects; fairly present the FC Parties, and there
have been no material amendments thereto since the date such items were prepared or delivered to Contributor.

 

Article
V.

CONDITIONS PRECEDENT

 

5.1           Conditions
Precedent to the Obligations of Each Party. The obligations of each Party to consummate the transactions contemplated hereby
at the Closing shall be subject to the satisfaction or waiver (where permissible), at or prior to the Closing, of the following
conditions:

 

(a)          No
Order. No Governmental Authority with jurisdiction over such matters shall have enacted, issued, promulgated, enforced or entered
any Law (whether temporary, preliminary or permanent) which is then in effect and has the effect of making the transactions contemplated
hereby at the Closing illegal or otherwise restricting, preventing or prohibiting consummation of such transactions.

 

(b)          Simultaneous
Closing. The transfers contemplated in Section 1.3(a) hereof shall all be consummated at the Closing on the Closing Date and
shall be deemed to have occurred simultaneously.

 

5.2           Conditions
Precedent to the Obligations of the Contributor. The obligations of each Contributor to consummate the transactions contemplated
hereby at the Closing shall be subject to the satisfaction or waiver (where permissible), at or prior to the Closing, of the following
additional conditions:

 

(a)          Agreements
and Covenants. FCRE OP and FCRE shall have performed all obligations to be performed by them, and complied with their agreements
and covenants to be performed or complied with by them under this Agreement on or prior to the Closing.

 

(b)          Closing
Deliveries. FCRE OP and FCRE shall have delivered, or caused to be delivered, each of the items set forth in Section 2.3.

 

5.3           Conditions
Precedent to the Obligations of the FC Parties. The obligations of the FC Parties to consummate the transactions contemplated
hereby at the Closing shall be subject to the satisfaction or waiver by the FC Parties, at or prior to the Closing, of the following
additional conditions:

 

(a)          Agreements
and Covenants. The Contributor shall have performed all obligations to be performed by them, and complied with their agreements
and covenants to be performed or complied with by them under this Agreement on or prior to the Closing.

 

(b)          Closing
Deliveries. The Contributor shall have delivered, or caused to be delivered, each of the respective items set forth in Section
2.2.

 

    12

     

    

 

(c)          The
FC Parties shall have the right to elect to waive one or more, or all, of the Conditions Precedent set forth in this Section 5.3,
each of which Conditions Precedent run in favor of FC Parties, and elect to determine to Close the transactions contemplated herein
prior to satisfaction of any of the conditions precedent set forth in this Section 5.3, in which case, the Closing shall occur
promptly upon such waiver.

 

5.4           Condition
Precedent. The truth, accuracy and completeness of each of the representations and warranties by FCRE and FCRE OP to the Contributor
made in this Agreement as of the date hereof, and as of the Closing Date, shall constitute a condition precedent to the obligations
of the Contributor hereunder. Each such representation and warranty shall survive the Closing and the transfer of the Contributed
Property hereunder. In the event that any Party to this Agreement proceeds to Closing with knowledge of any untruth or inaccuracy
with respect to the representations and warranties made in ARTICLE V that Party shall be deemed to have waived its rights to any
claim based such untruth or inaccuracy.  

 

Article
VI.

GENERAL PROVISIONS

 

6.1           Survival.
Unless otherwise set forth in this Agreement, the representations and warranties of the Parties contained in or made pursuant to
this Agreement shall survive the execution and delivery of this Agreement and the Closing and shall in no way be affected by any
investigation or knowledge of the subject matter thereof made by or on behalf of any of the Parties.

 

6.2           Notices.
All notices, consents, approvals, waivers or other communications (each, a “Notice”) required or permitted hereunder,
except as herein otherwise specifically provided, shall be in writing and shall be: (a) delivered personally or by commercial messenger;
(b) sent via a recognized overnight courier service; (c) sent by registered or certified mail, postage pre-paid and return receipt
requested; or (d) sent by email or facsimile transmission, provided confirmation of receipt is received by sender and the original
Notice is thereafter sent or delivered by an additional method provided in this Section 6.2, in each case so long as such
Notice is addressed to the intended recipient thereof as set forth below:

 

If to the Contributor hereto:

 

Mr. Siamak Kohanoff

c/o Kohanoff Arco

11243 San Fernando Road

San Fernando, CA 91340

 

With copies to:

 

Kaufman Dolowich Voluck

60 Broad Street, Suite 3600

New York, NY 1004

Attn: Steven P. Nassi, Esq.

 

    13

     

    

 

And

 

Stempel Bennett Claman & Hochberg, P.C.

675 Third Avenue, 31st Floor

New York, NY 10017

Attn: Steven R. Hochberg, Esq.

 

If to FC Party, to:

 

First Capital Real Estate Advisors, LP

60 Broad Street, 34th Floor

New York, NY 10004

Attn: Legal Department

Email: s@firstcapitalre.com

 

with a copy (which shall not constitute notice or service
of process

under this Section 6.2) to:

 

Downey Brand LLP

621 Capitol Mall

18th Floor

Sacramento, CA 95814

Attn: Anthony A. Arostegui, Esq.

Email: aarostegui@downeybrand.com

 

Any Party may change its address specified
above by giving each party Notice of such change in accordance with this Section 6.2. Any Notice shall be deemed given upon
actual receipt (or refusal of receipt).

 

6.3           Severability.
If any term or other provision of this Agreement is invalid, illegal or incapable of being enforced by any rule of law or public
policy or the application of this Agreement to any Person or circumstance is invalid or incapable of being enforced by any rule
of law or public policy, all other conditions and provisions of this Agreement shall nevertheless remain in full force and effect
so long as the economic or legal substance of the transactions contemplated hereby is not affected in any manner materially adverse
to any Party. To such end, the provisions of this Agreement are agreed to be severable. Upon such determination that any term or
other provision is invalid, illegal or incapable of being enforced, the parties hereto shall negotiate in good faith to modify
this Agreement so as to effect the original intent of the Parties as closely as possible in a mutually acceptable manner in order
that the transactions contemplated hereby be consummated as originally contemplated to the fullest extent possible.

 

6.4           Amendment.
This Agreement may not be amended or modified in any respect other than by the written agreement of all of the Parties.

 

    14

     

    

 

6.5           Parties
in Interest. This Agreement shall be binding upon and inure solely to the benefit of each Party hereto, and nothing in this
Agreement, express or implied, is intended to or shall confer upon any other Person any right, benefit or remedy of any nature
whatsoever under or by reason of this Agreement except that First Capital Real Estate Advisors, L.P. is a third party beneficiary
hereunder as the external advisor of FCRE.

 

6.6           Governing
Law; Jurisdiction and Venue.

 

(a)          This
Agreement shall be governed by and construed in accordance with, the laws of the State of New York without regard, to the fullest
extent permitted by law, to the conflicts of laws provisions thereof which might result in the application of the laws of any other
jurisdiction.

 

(b)          Each
Party agrees that any Proceeding for any claim arising out of or related to this Agreement or the transactions contemplated hereby,
whether in tort or contract or at law or in equity, shall be brought only in either the United States District Court for the Southern
District of New York or in a New York state court sitting in New York, New York (each, a “Chosen Court”), and
each Party irrevocably (a) submits to the jurisdiction of the Chosen Courts (and of their appropriate appellate courts), (b) waives
any objection to laying venue in any such Proceeding in either Chosen Court, (c) waives any objection that such Chosen Court is
an inconvenient forum for the Proceeding, and (d) agrees that, in addition to other methods of service provided by law, service
of process in any such Proceeding shall be effective if provided in accordance with Section 6.2, and the effective date
of such service of process shall be as set forth in Section 6.2.

 

6.7           Waiver
of Jury Trial. Each of the Parties hereto hereby waives to the fullest extent permitted by applicable Law any right it may
have to a trial by jury with respect to any litigation directly or indirectly arising out of, under or in connection with this
Agreement or the transactions contemplated hereby. Each of the Parties hereto (a) certifies that no representative, agent or attorney
of any other Party has represented, expressly or otherwise, that such other Party would not, in the event of litigation, seek to
enforce that foregoing waiver, and (b) acknowledges that it and the other Parties hereto have been induced to enter into this Agreement
and the transactions contemplated hereby, as applicable, by, among other things, the mutual waivers and certifications in this
Section 6.7.

 

6.8           Waiver.
Except as provided in this Agreement, no action taken pursuant to this Agreement, including, without limitation, any investigation
by or on behalf of any Party, shall be deemed to constitute a waiver by the Party taking such action of compliance with any representations,
warranties, covenants or agreements contained in this Agreement. The waiver by any Party hereto of a breach of any provision hereunder
shall not operate or be construed as a waiver of any prior or subsequent breach of the same or any other provision hereunder.

 

6.9           Mutual
Drafting; Consultation with Advisors. Each Party hereto has participated in the drafting of this Agreement, which each Party
acknowledges is the result of the negotiations between the Parties.

 

    15

     

    

 

6.10         Entire
Agreement. This Agreement (including its exhibits, appendices and schedules and the other documents delivered pursuant hereto
and thereto constitute a complete and exclusive statement of the agreement between the Parties with respect to the subject matter
hereof and thereof, and supersede all other prior agreements, arrangements or understandings by or between the Parties, written
or oral, express or implied, with respect to the subject matter hereof or thereof.

 

6.11         Counterparts.
This Agreement may be executed (including by facsimile or other similar electronic transmission) with counterpart signature pages
or in any number of counterparts, each of which shall be deemed an original, but all of which together shall constitute one and
the same instrument.

 

6.12         Section
Headings; Interpretation.

 

(a)          The
descriptive headings of sections and paragraphs of this Agreement are inserted for convenience only, and do not constitute a part
of this Agreement and shall not affect in any way the meaning or interpretation of this Agreement,

 

(b)          When
a reference is made in this Agreement to an Article, Section, Annex or Exhibit, such reference shall be to an Article, Section,
Annex or Exhibit of or to this Agreement unless otherwise indicated. Whenever the words “include,” “includes”
or “including” are used in this Agreement, they shall be deemed to be followed by the words “without limitation”
unless the context otherwise requires or unless otherwise specified. Unless the context requires otherwise, the terms “hereof,”
“herein,” “hereby,” “hereto” and derivative or similar words in this Agreement refer to this
entire Agreement. Except as otherwise specifically provided herein, where any action is required to be taken on a particular day
and such day is not a Business Day and, as a result, such action cannot be taken on such day, then this Agreement shall be deemed
to provide that such action shall be taken on the first Business Day after such day.

 

[Signature Pages to Follow]

 

    16

     

    

 

IN WITNESS OF THE FOREGOING, each Party
executes this Agreement as of the date first written above, by the Party himself or herself or the Party’s duly authorized
officer.

 

	CONTRIBUTOR:	 
	 	 
	SIAMAK KOHANOFF	 
	 	 
	/s/ Siamak Kohanoff	 

 

	FC PARTIES: 	 
	 	 	 	 
	FIRST CAPITAL REAL ESTATE	 
	OPERATING PARTNERSHIP, L.P.	 
	a Delaware limited partnership	 
	 	 	 	 
	By:	First Capital Real Estate Trust Incorporated,	 
	 	a Maryland corporation	 
	 	its General Partner	 
	 	 	 	 
	 	By: 	/s/ Suneet Singal	 
	 	Name:  Suneet Singal 
	 	Title:  CEO & Chairman of the Board 

 

	FIRST CAPITAL REAL ESTATE 	 
	TRUST INCORPORATED	 
	a Maryland corporation	 
	 	 	 	 
	 	By: 	/s/ Suneet Singal	 
	 	Name:  Suneet Singal 
	 	Title:  CEO & Chairman of the Board 

 

[Signature page to Contribution Agreement]

 

    17

     

    

 

DEFINITIONS

 

“Agreement”
has the meaning set forth in the introductory paragraph.

 

“Affiliate”
means, with respect to a specified Person, each other Person that directly or indirectly Controls, is Controlled by, or is under
common Control with that Person.

 

“Best Knowledge”
means to the extent that such knowledge is ascertainable though a reasonable inquiry of the relevant facts and circumstances.

 

“Business
Day” means any day other than (a) a Saturday or a Sunday, or (b) a day on which banks are required or authorized by Law
to be closed in The City of New York.

 

“Cash Payment”
shall have the meaning set forth in Section 1.5(b).

 

“Chosen Court”
has the meaning set forth in Section 6.6.

 

“Code”
has the meaning set forth in the recitals.

 

“Contributed
Property” has the meaning set forth in the recitals.

 

“Contributed
Entity” and “Contributed Entities” have the meanings set forth in the recitals.

 

“Contributed
Entities” has the meaning set forth in the recitals.

 

“Contributed
Property” has the meaning set forth in the recitals.

 

“Closing”
has the meaning set forth in Section 2.1.

 

“Closing Date”
has the meaning set forth in Section 2.1.

 

“Contributing
Party” or “Contributing Parties” has the meaning set forth in Section 3.1.

 

“Contributor”
has the meaning set forth in the introductory paragraph.

 

“Control”
means the possession, directly or indirectly, of the power to direct or cause the direction of the management and policies of a
Person, whether through the ownership of an equity interest, by contract or otherwise. The terms “Controlled by” and
“under common Control with” have correlative meanings.

 

“Conversion
Event” has the meaning set forth in Section 1.9.

 

     

     

    

 

“Entity”
means, except for Governmental Authorities, (a) any corporation, partnership, joint venture, limited liability company, business
trust or other business entity, (b) any association, unincorporated business or other organization, (c) any trust, and (d) any
other organization having legal status as an entity under any Law.

 

“Environmental
Law” means Laws or Orders of any Governmental Authority relating to pollution or protection of the environment or natural
resources (including the generation, use, storage, management, treatment, transportation, disposal, presence, Release or threatened
Release of any Hazardous Material) or occupational health and safety, such as the Clean Air Act, 42 U.S.C. Section 7401 et seq.;
the Clean Water Act, 33 U.S.C. Section 1251 et seq. and the Water Quality Act of 1987; the Federal Insecticide, Fungicide, and
Rodenticide Act, 7 U.S.C. Section 136 et seq.; the Marine Protection, Research and Sanctuaries Act, 33 U.S.C. Section 1401 et seq.;
the National Environmental Policy Act, 42 U.S.C. Section 4321 et seq.; the Noise Control Act, 42 U.S.C. Section 4901 et seq.; the
Occupational Safety and Health Act, 29 U.S.C. Section 651 et seq.; the Resource Conservation and Recovery Act, 42 U.S.C. Section
6901 et seq., as amended by the Hazardous and Solid Waste Amendments of 1984; the Safe Drinking Water Act, 42 U.S.C. Section 300f
et seq.; the Comprehensive Environmental Response, Compensation, and Liability Act (“CERCLA”), 42 U.S.C. Section 9601
et seq., as amended by the Superfund Amendments and Reauthorization Act, the Emergency Planning and Community Right-to-Know Act,
and Radon Gas and Indoor Air Quality Research Act; the Toxic Substances Control Act, 15 U.S.C. Section 2601 et seq.; the Atomic
Energy Act, 42 U.S.C. Section 2011 et seq., and the Nuclear Waste Policy act of 1982, 42 U.S.C. Section 10101 et seq.

 

“Environmental
Permits” means any and all licenses, certificates, permits, directives, requirements, registrations, government approvals,
agreements, authorizations, and consents that are required under or are issued pursuant to any Environmental Laws.

 

“FC Parties”
has the meaning set forth in the introductory paragraph.

 

“FCRE”
shall mean First Capital Real Estate Trust Incorporated, a Maryland corporation (f/k/a United Realty Trust Incorporated).

 

“FCRE OP”
shall mean First Capital Real Estate Operating Partnership, LP, a Delaware limited partnership (f/k/a United Realty Capital Operating
Partnership, LP).

 

“FC Parties”
has the meaning set forth in the introductory paragraph.

 

“FIRPTA Affidavit”
has the meaning set forth in Section 2.2(c).

 

“Governmental
Authority” means (a) any body exercising executive, legislative, judicial, regulatory or administrative functions of
or pertaining to government, including any governmental agency, department, board, commission or other instrumentality, whether
national, territorial, federal, state, provincial, local, supranational or other authority, (b) any organization of multiple nations,
or (c) any tribunal, court or arbitrator of competent jurisdiction.

 

     

     

    

 

“Hazardous
Material” means any material, substance or waste defined or regulated in relevant form, quantity or concentration as
hazardous or toxic or as a pollutant or contaminant (or words of similar import) pursuant to any Environmental Law, including any
petroleum, waste oil or petroleum constituents or by-products.

 

“Improvements”
means, with respect to the Contributed Property, all buildings and other structures and improvements situated on the land, to the
extent the same form a part of the Contributed Property.

 

“Issuance
Price” shall be $16.03 per OP Unit.

 

“Joinder”
has the meaning set forth in Section 2.2(b).

 

“Law”
and “Laws” mean (a) any constitution applicable to, and any statute, treaty, rule, regulation, ordinance, or
requirement of any kind of, any Governmental Authority, (b) principles of common law, and (c) any Order.

 

“Liabilities”
means any and all debts, liabilities and obligations, of whatever kind or nature, primary or secondary, direct or indirect, whether
accrued or fixed, known or unknown, absolute or contingent, matured or unmatured or determined or determinable.

 

“Lien”
means any lien, encumbrance, security interest, pledge or any other title restriction of any kind.         

 

“Material
Adverse Effect” means a material adverse change in the condition, financial or otherwise, or in the earnings, business
affairs, business prospects, management, assets or properties of FCRE, FCRE OP and their respective subsidiaries considered as
one enterprise, whether or not arising in the ordinary course of business.

 

“Monthly Yield Payment”
shall have the mean set forth in Section 1.8.

 

“Notice” has the meaning
set forth in Section 6.2.

 

“Partnership
Agreement” means the agreement of limited partnership of FCRE OP and any amendments or restatements thereto.

 

“OP Units”
has the meaning set forth in Section 1.4.

 

“Order”
means any decree, injunction, judgment, order, ruling, writ, assessment or arbitration award of a Governmental Authority, arbitrator
or arbitral body, commission or self-regulatory organization, whether arising from a Proceeding or applicable Law.

 

“Organizational
Documents” means each of the following, as applicable, as amended and supplemented: (a) the articles or certificate of
incorporation and the bylaws of a corporation; (b) the partnership agreement and any statement of partnership of a general partnership;
(c) the limited partnership agreement and the certificate of limited partnership of a limited partnership; (d) the operating agreement
(or limited liability company agreement) and certificate of organization or formation of a limited liability company; and (e) any
charter or similar document adopted or filed in connection with the creation, formation or organization of a Person.

 

     

     

    

 

“Parties”
has the meaning set forth in the introductory paragraph.

 

“Permits”
means, with respect to the Property, all governmental permits and approvals, including licenses, registrations and authorizations,
required for the ownership and operation of the Contributed Entity or the Property at the Real Property, including without limitation,
qualifications to do business, certificates of occupancy, building permits, signage permits, site use approvals, zoning certificates,
environmental and land use permits, and any and all other necessary approvals from Governmental Authorities and other approvals
granted by any public body.

 

“Person”
means an individual, an Entity or a Governmental Authority.

 

“Proceeding”
means any action, claim, audit or other inquiry, hearing, investigation, suit or other charge or proceeding (whether civil, criminal,
administrative, investigative, formal or informal) by or before any Governmental Authority or before an arbitrator or arbitral
body or mediator.

 

“Real Property”
shall mean, with respect to the Property, collectively, the land and Improvements, together with all easements, rights of way,
privileges, licenses and appurtenances which the Contributed Entity or any of its Subsidiaries may now own or hereafter acquire
with respect thereto.

 

“REIT”
has the meaning set forth in the recitals.

 

“SEC”
means the U.S. Securities and Exchange Commission.

 

“Securities”
has the meaning set forth in Section 1.4(a).

 

“Securities
Act” means the Securities Act of 1933, as amended.

 

“Tax”
or “Taxes” means (i) all federal, state, local and foreign net or gross income, gross receipts, turnover, license,
payroll, employment, excise, severance, stamp, occupation, premium, windfall profits, environmental (including taxes under Code
Section 59A), customs, duties, export taxes and withholdings, capital stock, franchise, profits, withholding, social security (or
similar), unemployment, supplementary, retirement system, disability, real property, personal property, sales, use, transfer, registration,
value added, recording, intangible, documentary, goods and services, ad valorem, net proceeds, net worth, special assessments,
workers’ compensation, utility, production, gains, alternative or add-on minimum, estimated, or other tax of any kind whatsoever,
together with any interest, penalty, or addition thereto payable in connection with such taxes, whether disputed or not and (ii)
any liability of any Person for the payment of amounts of the type described in clause (i) as a transferee, successor or payable
pursuant to a contractual obligation.

 

“Tax Return”
means any return, declaration, report, claim for refund, document, or information return or statement relating to Taxes, or other
filing required to be supplied to any taxing authority or jurisdiction (foreign or domestic) with respect to Taxes, including any
schedules or attachments thereto, and including any amendments thereof.

 

     

     

    

 

“Transaction
Documents” means collectively this Agreement and the other agreements contemplated to be delivered in connection herewith
or therewith and any other agreement, certificate, instrument or writing delivered by the Contributor in connection with this Agreement
or the transactions contemplated hereby.

 

[Schedules and Exhibits to Follow]

 

     

     

    

 

SCHEDULE 1.5

 

ALLOCATION OF SECURITIES

 

	Receiving

Party	 	Percentage of OP Units Issued

Hereunder Allocated to Receiving Party
	Siamak Kohanoff	 	100%

 

     

     

    

 

EXHIBIT A

 

FORM OF ASSIGNMENT AND ASSUMPTION AGREEMENT

 

ASSIGNMENT AND ASSUMPTION OF MEMBERSHIP
INTEREST

 

THIS ASSIGNMENT AND
ASSUMPTION OF MEMBERSHIP INTEREST (this "Assignment") is made as of this 13th day of September, 2016 by and between
SIAMAK KOHANOFF (“Assignor”), and FIRST CAPITAL REAL ESTATE OPERATING PARTNERSHIP, LP, a Delaware limited partnership
("Assignee").

 

WITNESSETH:

 

WHEREAS, Assignor is
the owner of 31% of the limited liability company interests in UNITED 2520 TILDEN, LLC, a Delaware limited liability company (the
“Company”) including the profit participation interest afforded to Assignor under the operating agreement of
the Company dated March 29, 2013 as the same was amended December 31, 2015 and as the same may have been further amended or modified
from time to time (the "LLC Agreement");

 

WHEREAS, the Company
is the owner of 100% of the limited liability company interest in 2520 TILDEN FEE, LLC, a Delaware limited liability company (“Tilden
Fee”); and

 

WHEREAS, Tilden Fee is
the direct owner of 100% of the fee simple interest in that certain property located at 2520 Tilden Ave, Brooklyn, NY 11226 and
improvements thereon (the “Property”), which title is good and marketable, and free and clear of liens and encumbrances
except only non-monetary matters of record, zoning and similar laws, and which Property is subject to the Mortgage Debt as described
below (collectively, the “Permitted Exceptions”); and

 

WHEREAS, Assignor desire
to contribute and assign 100% percent of its membership interests and profit participation interest in the Company (the “Membership
Interests”) to Assignee, and Assignee desires to assume the same, all under the terms and conditions set forth herein;
and

 

WHEREAS, this Assignment
is being made pursuant to that certain agreement dated September 13, 2016 (the “Contribution Agreement”), by
and among Assignor, Assignee and FIRST CAPITAL REAL ESTATE TRUST INCORPORATED (“FCRE”).

 

NOW, THEREFORE, in consideration
of the foregoing, the payment of good and valuable consideration, the receipt and sufficiency of which hereby are acknowledged,
Assignor and Assignee, intending to be legally bound hereby, agree as follows:

 

1.          Assignment;
Representations.

 

(a)          Assignor
hereby contribute and assign all of Assignor’s right, title and interest in and to the Membership Interests to Assignee,
to have and to hold the Membership Interests unto Assignee, and Assignee's legal representatives, heirs, successors and assigns,
as the case may be, forever.

 

     

     

    

 

(b)          Assignor
hereby represents and warrants to Assignee that:

 

(i)          each
of the representations in the Recitals are true and correct and are incorporated herein by reference as if fully restated herein;

 

(ii)         the
Property owned by Tilden Fee is subject to one or more mortgage loans with a current balance of principal and interest of not more
than $14,486,654.00 (the “Mortgage Debt”); except for the Mortgage Debt neither the Property, Tilden Fee nor the Company
has any other debt except for ordinary trade debt incurred in the ordinary course of business, and Assignor has received a notice
of default on any of the Mortgage Debt or any other debt, obligations or agreements which the Company, Tilden Fee or the Property
have with any persons; and

 

(iii)        the
Membership Interests are free and clear of any and all liens, charges and/or encumbrances, is owned entirely by Assignor and has
not previously been conveyed, pledged or assigned by Assignor to any other party, and Assignor has full power and authority to
execute and deliver this Assignment.

 

2.          Incorporation
by Reference. This Assignment is being made in accordance with and pursuant to the Contribution Agreement, and all of the Assignor’s
representations and warranties, and agreements, undertakings, indemnifications and commitments relating to the Property, the Company
and this Assignment as set forth in the Contribution Agreement are incorporated herein by reference as if fully restated herein.

 

3.          Assumption.
Assignee hereby accepts Assignor’s assignment of the Membership Interests and assumes the performance and observance of all
of the covenants, agreements and conditions on the part of Assignor to be performed and observed respecting the Mortgage Debt and
the Membership Interest pursuant to the LLC Agreement from and after the date hereof.

 

     

     

    

 

4.          Regulation
S-X Cooperation. Assignee has advised Assignor that Assignee, or one or more of its affiliates, must comply with Securities
and Exchange Commission Regulation S-X (17. C.F.R. §Part 210) (“Regulation S-X”), including, but not limited
to, Rule 3-14. In connection with such compliance with Regulation S-X, Assignor shall at the request of Assignee (a) make available
to Assignee for review and, as necessary, copying, all financial and other information pertaining to the period of the Assignor’s
ownership of the Property and Membership Interests, which information is relevant and necessary, in the opinion of Assignee or
its independent registered public accounting firm (the “Accountants”), to enable Assignee and its Accountants
to prepare financial statements in compliance with Regulation S-X, if and to the extent the same then exists and has not been previously
provided or made available to Assignee prior to or in connection with the Closing, (b) cooperate with Assignee and provide access
to any of Assignor’s contractor’s personnel involved with the financial reporting of the Property or Membership Interests,
at no expense to Assignor and at reasonable times and places for a period ending on March 31, 2017, and (c) provide to Assignee’s
Accountants a commercially reasonable representation letter, at Assignee’s sole cost and expense, regarding the books and
records of the Property and Membership Interests in connection with such Accountants’ auditing of the Property in accordance
with generally accepted auditing standards. Assignee acknowledges that (i) the information described in clause (a) above shall
be made available in the locations at which such information is currently maintained by Assignor, (ii) Assignee will reimburse
Assignor as soon as practicable for any reasonable out-of-pocket costs incurred by Assignor in connection with Assignor’s
compliance with this Section 4, and (iii) Assignee shall maintain the confidentiality of all information provided pursuant to this
Section 4 except solely to the extent necessary for Assignee to comply with Regulation S-X or any request by the staff of the Securities
and Exchange Commission.

 

5.          Survival.
The representations and warranties contained in Paragraphs 1 and 2, and the undertakings set forth in Paragraphs 3 and 4 of this
agreement, shall survive the delivery hereof.

 

[Remainder of page is left intentionally
blank; Signature page follows]

 

     

     

    

 

IN WITNESS WHEREOF,
Assignor and Assignee have duly executed and delivered this Assignment as of the date first above written.

 

	 	ASSIGNOR:
	 	 
	 	SIAMAK KOHANOFF
	 	 
	 	 
	 	ASSIGNEE:
	 	 
	 	FIRST CAPITAL REAL ESTATE
	 	OPERATING PARTNERSHIP, L.P. 
	 	a Delaware limited partnership

 

	 	By:	First Capital Real Estate Trust Incorporated,
	 	 	a Maryland corporation
	 	 	its General Partner

 

	 	By:	 
	 	Name:  Suneet Singal
	 	Title:  CEO & Chairman of the Board

  

	STATE OF ________________	)
	 	) SS:
	COUNTY OF______________	)

 

I certify that on September ___, 2016,
Siamak Kohanoff to me known and known to me to be the person described in and who executed the foregoing instrument and he/she
acknowledged to me that he/she executed the same.

 

	 	 	 
	 	NOTARY PUBLIC	 

 

	STATE OF ________________	)
	 	) SS:
	COUNTY OF______________	)

 

I certify that on September
___, 2016, Suneet Singal came before me in person and stated to my satisfaction that he made and signed the attached instrument;
and was authorized to and did execute this instrument on behalf of and as authorized signatory for FIRST CAPITAL REAL ESTATE OPERATING
PARTNERSHIP, LP, the entity named in this, as the free act and deed of the entity, by virtue of the authority granted by its partnership
agreement and its members.

 

	 	 	 
	 	NOTARY PUBLIC	 

 

     

     

    

 

EXHIBIT B

 

FORM OF JOINDERExhibit 4.3

 

GLOBAL NOTE

 

THIS SECURITY IS A GLOBAL SECURITY WITHIN THE MEANING OF THE INDENTURE REFERRED TO IN THIS SECURITY AND IS REGISTERED IN THE NAME OF A DEPOSITARY OR ITS NOMINEE.  THIS SECURITY MAY NOT BE TRANSFERRED TO, OR REGISTERED OR EXCHANGED FOR SECURITIES REGISTERED IN THE NAME OF, ANY PERSON OTHER THAN THE DEPOSITARY OR ITS NOMINEE OR A SUCCESSOR OF SUCH DEPOSITARY OR A NOMINEE OF SUCH SUCCESSOR AND NO SUCH TRANSFER MAY BE REGISTERED, EXCEPT IN THE LIMITED CIRCUMSTANCES DESCRIBED IN THE INDENTURE.  EVERY SECURITY AUTHENTICATED AND DELIVERED UPON REGISTRATION OF TRANSFER OF, OR IN EXCHANGE FOR OR IN LIEU OF, THIS SECURITY SHALL BE A GLOBAL SECURITY SUBJECT TO THE FOREGOING, EXCEPT IN SUCH LIMITED CIRCUMSTANCES.

 

UNLESS THIS CERTIFICATE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY TRUST COMPANY, A NEW YORK CORPORATION (“DTC”), TO THE ISSUER OR ITS AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE, OR PAYMENT, AND ANY CERTIFICATE ISSUED IS REGISTERED IN THE NAME OF CEDE  & CO. OR IN SUCH OTHER NAME AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC (AND ANY PAYMENT IS MADE TO CEDE & CO. OR TO SUCH OTHER ENTITY AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC), ANY TRANSFER, PLEDGE, OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL INASMUCH AS THE REGISTERED OWNER HEREOF, CEDE & CO., HAS AN INTEREST HEREIN.

 

THIS SECURITY IS NOT A DEPOSIT AND IS NOT INSURED BY THE FEDERAL DEPOSIT INSURANCE CORPORATION OR ANY FEDERAL OR OTHER GOVERNMENTAL AGENCY.

 

1

 

LEGACYTEXAS FINANCIAL GROUP, INC.

 

5.50% Fixed-to-Floating Rate Notes due December 1, 2025

 

	
 
    	
ISIN: US52472EAA73
    	
 
    	
CUSIP: 52472E AA7
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
No. R-2
    	
 
    	
$50,000,000
    	
 
    

 

LegacyTexas Financial Group, Inc., a corporation duly organized and existing under the laws of the State of Maryland (hereinafter called the “Company”, which term includes any successor corporation under the Indenture hereinafter referred to), for value received, hereby promises to pay to CEDE & Co., or registered assigns the principal sum as set forth in the Schedule of Increases or Decreases in Note attached hereto on December 1, 2025 (such date is hereinafter referred to as the “Maturity Date”), and to pay interest thereon, as hereinafter set forth.

 

The Notes will bear interest at a fixed rate of 5.50% per annum from and including June 1, 2016 to but excluding December 1, 2020 (the “Fixed Rate Period”). Interest accrued on the Notes during the Fixed Rate Period will be payable semi-annually in arrears on June 1 and December 1 of each year, commencing on December 1, 2016 (each such date a “Fixed Rate Interest Payment Date”). The interest accrued during the Fixed Rate Period will be paid to each holder in whose name a Note is registered at the close of business on May 15 and November 15 (whether or not a Business Day) immediately preceding the applicable Fixed Rate Interest Payment Date.

 

The Notes will bear a floating interest rate from and including December 1, 2020 to but excluding the Maturity Date or earlier redemption (the “Floating Rate Period”).  The floating interest rate will be equal to the then-current three-month LIBOR on the determination date of the applicable interest period plus 389 basis points.  Interest accrued on the Notes during the Floating Rate Period will be payable quarterly in arrears on March 1, June 1, September 1, and December 1 of each year (each such date, a “Floating Rate Interest Payment Date”, together with a “Fixed Rate Interest Payment Date”, an “Interest Payment Date”).  The interest accrued during the Floating Rate Period will be paid to each holder in whose name a Note is registered at the close of business on the February 15, May 15, August 15, and November 15 (whether or not a Business Day) immediately preceding the applicable Floating Rate Interest Payment Date.

 

‘‘LIBOR’’ means the rate as published by Bloomberg (or another commercially available source providing quotations of such rate as selected by the Company from time to time) at approximately 11:00 a.m., London time, two Business Days prior to the commencement of the relevant quarterly interest period, as the rate for dollar deposits in the London interbank market with a three-month maturity. If such rate is not available at such time for any reason, then the rate for that interest period will be determined by such alternate method as reasonably selected by the Company.

 

Interest will be computed on the basis of a 360-day year consisting of twelve 30-day months from and including June 1, 2016 to but excluding December 1, 2020, and, thereafter, a  360-day year and the number of days actually elapsed.

 

2

 

In the event that any scheduled Interest Payment Date for the Notes falls on a day that is not a Business Day, then payment of interest payable on such Interest Payment Date will be postponed to the next succeeding day which is a Business Day (and no interest on such payment will accrue for the period from and after such scheduled Interest Payment Date).

 

In the event that the Maturity Date for any Note falls on a day that is not a Business Day, then the related payments of principal, premium, if any, and interest may be made on the next succeeding day that is a Business Day (and no additional interest will accumulate on the amount payable for the period from and after the Maturity Date).  Interest due on the Maturity Date (whether or not an Interest Payment Date) of any Notes will be paid to the Person to whom principal of such Notes is payable.

 

Payment of the principal of and interest on this Note will be made at the office or agency of the Company maintained for that purpose in Dallas, Texas, which shall initially be the principal office of the Trustee located therein, in such coin or currency of the United States of America as at the time of payment is legal tender for payment of public and private debts; provided, however, that payment of interest may be made at the option of the Company by check mailed to the Person entitled thereto at such address as shall appear in the Security register (subject to surrender of the relevant Note in the case of a payment of interest on the Maturity Date).

 

Reference is hereby made to the further provisions of this Note set forth on the reverse hereof, which further provisions shall for all purposes have the same effect as if set forth at this place.

 

Unless the certificate of authentication hereon has been executed by the Trustee referred to on the reverse hereof by manual or facsimile signature, this Note shall not be entitled to any benefit under the Indenture or be valid or obligatory for any purpose.

 

[Signature Pages Follow]

 

3

 

IN WITNESS WHEREOF, the Company has caused this instrument to be duly executed.

 

Dated: September 20, 2016

 

LEGACYTEXAS FINANCIAL GROUP, INC.

 

	
By:
    	
 
    	
 
    	
 
    
	
 
    	
Name:
    	
Scott A. Almy
    	
 
    
	
 
    	
Title:
    	
Executive Vice President, Chief Operating   Officer,
    	
 
    
	
 
    	
 
    	
Chief Risk Officer and General Counsel
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
Attest by:
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
By:
    	
 
    	
 
    	
 
    
	
 
    	
Name:
    	
Sherrie Tawwater
    	
 
    
	
 
    	
Title:
    	
Assistant Secretary
    	
 
    

 

[Signature Page to Global Note]

 

 

TRUSTEE’S CERTIFICATE OF AUTHENTICATION

 

This is one of the Securities of the series designated therein referred to in the within-mentioned Indenture.

 

Dated: September 20, 2016

 

U.S. BANK NATIONAL ASSOCIATION,

As Trustee

 

	
By:
    	
 
    	
 
    	
 
    
	
 
    	
Name:
    	
 
    	
 
    
	
 
    	
Title:
    	
 
    	
 
    

 

 

REVERSE OF NOTE

 

LEGACYTEXAS FINANCIAL GROUP, INC.

 

This Note is one of a duly authorized issue of securities of the Company (herein called the “Note”), issued and to be issued in one or more series under an Indenture (the “Base Indenture”), dated as of November 23, 2015, between the Company and U.S. Bank National Association, as Trustee (herein called the “Trustee,” which term includes any successor trustee), as amended and supplemented by the First Supplemental Indenture between the Company and the Trustee (the “Supplemental Indenture” and together with the Base Indenture, the “Indenture”) dated as of November 23, 2015, to which Indenture reference is hereby made for a statement of the respective rights, limitations of rights, duties and immunities thereunder of the Company, the Trustee and the Holders of the Notes and of the terms upon which the Notes are, and are to be, authenticated and delivered. This Note is one of the series designated on the face hereof, initially limited in aggregate principal amount to $75,000,000 and subsequently increased to $125,000,000. The terms of this Note include those stated in the Indenture and those made part of the Indenture by reference to the Trust Indenture Act. This Note is subject to all such terms, and Holders are referred to the Indenture and the Trust Indenture Act for a statement of such terms. To the extent any provision of this Note conflicts with the express provisions of the Indenture, the provisions of the Indenture shall govern and be controlling (to the extent permitted by law).

 

All terms used in this Note that are defined in the Indenture shall have the meaning assigned to them in the Indenture.

 

The Company may, at its option, beginning with the Interest Payment Date of December 1, 2020, but not prior thereto, and on any Interest Payment Date thereafter, redeem the Notes, in whole or in part, subject to obtaining the prior approval of the FRB to the extent such approval is then required under the rules of the FRB, at a redemption price equal to 100% of the principal amount of the Notes to be redeemed plus accrued and unpaid interest to, but excluding, the date of redemption.

 

The Notes may not otherwise be redeemed prior to the Maturity Date, except that the Company may also, at its option, redeem the Notes before the Maturity Date in whole, at any time, or in part from time to time, upon the occurrence of (i) a Tax Event, (ii) a Tier 2 Capital Event, or (iii) the Company becoming required to register as an investment company pursuant to the Investment Company Act of 1940, as amended, in each case, at a redemption price equal to  100% of the principal amount of the Notes to be redeemed plus accrued and unpaid interest to, but excluding, the date of redemption.

 

The Notes will not be redeemable at the option of the Company except as set forth in Article 3 of the Supplemental Indenture.  Notice of redemption shall be given in accordance with Article XI of the Base Indenture.  Any partial redemption of the Notes will be made pro rata among all of the Holders of the Notes. Notice of redemption of the Notes to be redeemed at the election of the Company shall be given by the Company or, at the Company’s request, by the Trustee in the name and at the expense of the Company; provided, however, that the Company shall have delivered to the Trustee, at least five Business Days prior to the giving of notice of redemption, an Officers’ Certificate requesting that the Trustee give such notice and setting forth the

 

6

 

information to be stated in the notice as provided in Article XI of the Base Indenture.  Any notice of redemption may be conditional at the Company’s discretion on one or more conditions precedent, and the redemption date may be delayed until such time as any or all of such conditions have been satisfied.

 

The Notes are not subject to repayment at the option of the Holders of the Notes. The Notes are not entitled to the benefit of any sinking fund.

 

If an Event of Default with respect to Notes shall occur and be continuing, the principal of the Notes shall become immediately due and payable in the manner and with the effect provided in the Indenture.

 

The Indenture permits, with certain exceptions as therein provided, the amendment thereof and the modification of the rights and obligations of the Company and the rights of the Holders of the Notes at any time by the Company and the Trustee with the consent of the Holders of a majority in principal amount of the Notes affected thereby and at the time Outstanding.  The Indenture also contains provisions permitting the Holders of a majority in principal amount of the Notes at the time Outstanding, on behalf of the Holders of all Notes, to waive certain past defaults under the Indenture and their consequences.  Any such consent or waiver by the Holder of this Note shall be conclusive and binding upon such Holder and upon all future Holders of this Note and of any Note issued upon the registration of transfer hereof or in exchange herefor or in lieu hereof, whether or not notation of such consent or waiver is made upon this Note.

 

As provided in the Indenture and subject to certain limitations therein set forth, the transfer of this Note is registrable in the Security Register, upon surrender of this Note for registration of transfer at the office or agency of the Company in any place where the principal of and interest on this Note are payable, duly endorsed by, or accompanied by a written instrument of transfer in form satisfactory to the Company and the Security Registrar duly executed by the Holder hereof or his attorney duly authorized in writing, and thereupon one or more new Notes, of authorized denominations and for the same aggregate principal amount, will be issued to the designated transferee or transferees.

 

The Notes are issuable only in registered form without coupons in denominations of $2,000 and any integral multiple of $1,000 in excess thereof.

 

The Trustee and any agent of the Company or the Trustee may treat the Person in whose name this Note is registered as the owner hereof for all purposes, whether or not this Note is overdue, and neither the Company, the Trustee nor any such agent shall be affected by notice to the contrary.

 

THIS NOTE SHALL BE DEEMED TO BE A CONTRACT MADE UNDER THE LAWS OF THE STATE OF NEW YORK, AND FOR ALL PURPOSES SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF SAID STATE.

 

7

 

ASSIGNMENT FORM

 

To assign this Security, fill in the form below: 

 

I or we assign and transfer this Security to:

 

	
 
    
	
(Insert assignee’s   social security or tax I.D. no.)
    

 

	
 
    
	
 
    
	
 
    
	
 
    
	
 
    
	
 
    
	
 
    
	
(Print or type   assignee’s name, address and zip code)
    

 

and irrevocably appoint ________________________ as agent to transfer this Security on the books of the Company.  The agent may substitute another to act for him.

 

 

 

	
Your   Signature:
    	
 
    
	
 
    	
(Sign   exactly as your name appears on the other side of this Security)
    
	
 
    	
 
    
	
Your Name:
    	
 
    
	
 
    	
 
    
	
Date:
    	
 
    
	
 
    	
 
    
	
Signature Guarantee:
    	
*
    

 

* NOTICE: The Signature must be guaranteed by an Institution which is a member of one of the following recognized signature Guarantee Programs: (i) The Securities Transfer Agent Medallion Program (STAMP); (ii) The New York Stock Exchange Medallion Program (MNSP); (iii) The Stock Exchange Medallion Program (SEMP); or (iv) such other guarantee program acceptable to the Trustee.

 

8

 

SIGNATURE GUARANTEE

 

Signatures must be guaranteed by an “eligible guarantor institution” meeting the requirements of the Security registrar, which requirements include membership or participation in the Security Transfer Agent Medallion Program (“STAMP”) or such other “signature guarantee program” as may be determined by the Security registrar in addition to, or in substitution for, STAMP, all in accordance with the Securities Exchange Act of 1934, as amended.

 

9

 

SCHEDULE OF INCREASES OR DECREASES IN NOTE

 

The initial principal amount of this Note is $50,000,000.  The following increases or decreases in the principal amount of this Note have been made:

 

	
Date
    	
 
    	
Amount of
   decrease in
   principal amount
   of this Note
    	
 
    	
Amount of
   increase in
   principal amount
   of this Note
    	
 
    	
Principal amount of
   this Note following
   such decrease or
   increase
    	
 
    	
Signature of
   authorized
   signatory of
   Trustee
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    

 

10

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