Document:

THIRD AMENDMENT TO

AGREEMENT OF SALE

 

THIS THIRD AMENDMENT
TO AGREEMENT OF SALE (the “Amendment”) is entered into as of the 28th day of August, 2013, between
THREE WM REAL ESTATE, LLC, THREE WM OPERATING, LLC, FOUR WM REAL ESTATE, LLC, FOUR WM OPERATING, LLC, each a Delaware limited
liability company (individually and collectively, the “Seller”) and WOODBURY MEWS III, LLC, WOODBURY
MEWS IV, LLC, WOODBURY MEWS LAND PARCELS, LLC (each a Delaware limited liability company (individually and collectively,
the “Purchaser”).

 

RECITALS:

 

A.           Seller
and Purchaser are parties to that certain Agreement of Sale dated June 26, 2013, as amended by that certain First Amendment to
Agreement of Sale dated August 9, 2013, and that certain Second Amendment to Agreement of Sale dated August 23, 2013 (collectively,
the “Agreement”), pursuant to which Seller agreed to sell, and Purchaser agreed to purchase, certain
real property located at 122 and 124 Green Avenue, Woodbury, New Jersey, as more particularly described in the Agreement.

 

B.           Seller
and Purchaser desire to amend the Agreement, upon the terms and conditions set forth in this Amendment.

 

NOW, THEREFORE,
in consideration of the mutual covenants contained herein and other good and valuable consideration, the receipt and sufficiency
of which are hereby acknowledged, the parties agree as follows:

 

AGREEMENTS:

 

1.    
Recitals, Definitions. The foregoing recitals are true and correct and are incorporated herein by reference. Capitalized
but undefined terms used in this Amendment shall have the meanings given to them in the Agreement.

 

2.    
Conditions to Closing.

 

(a)          Section
5(b)(vi) is hereby deleted in its entirety and replaced with the following:

 

Seller shall have obtained (i)
the consent to the assignment of the PILOT Agreement from the City to Purchaser with respect to the Three Land and Four Land, and
the Adjacent Land, and (ii) an amendment to the PILOT Agreement (or amended and restated PILOT Agreement, which shall include,
at a minimum, an amended and restated Financial Agreement (the “Financial Agreement”)), including a reallocation
of the payments with respect to the Land and the Adjacent Land, each in the form submitted by Seller and Purchaser to the City,
without changes that materially and adversely affect the legality, scope or economics thereof, as determined by Seller and Purchaser;
provided, however, that for purposes of this Agreement, the Purchaser and Seller agree and acknowledge that any deviation from
the forms submitted to the City by Purchaser and Seller to (x) the definition of “Total Project Cost” (as defined by
Financial Agreement, which shall reflect the total Purchase Price under this Agreement, as amended), (y) the “Annual Service
Charges” (as defined in Section 3.2 and Exhibit B of the Financial Agreement) which results in (A) a net aggregate reallocation
to Lots 2, 3, 4 and 5 of more than $86,536 for the year 2013 or (B) an increase in the total Annual Service Charges payable with
respect to the Land and the Adjacent Land for any year from the amounts shown in the column labeled “Total” on the
schedule attached hereto as Exhibit Q (other than with respect to new development); or (z) the ability of the Purchaser
to submit consolidated financials to the City under the Financial Agreement, shall be considered a material and adverse change
for purposes of this Agreement; (iii) an ordinance from the City approving the consent and the amendment, in form acceptable to
Seller and Purchaser; and (iv) the statutory appeal period to the amended PILOT Agreement (the “PILOT Appeal Period”)
shall have expired without an appeal by a third party having been filed (or, if any appeal is filed, with such appeal having been
conclusively adjudicated in favor of the PILOT Amendment or settled in a manner acceptable to Purchaser, in its reasonable discretion.
Purchaser acknowledges that if Purchaser is provided with a commercially reasonable opinion from a New Jersey licensed attorney
at Drinker Biddle & Reath LLP that the applicable statutory appeal period is 20 days, then the statutory appeal period shall
be 20 days for purposes of this Section 5(b)(vi).

 

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(b)          Section
5(b)(xii) shall be created to read as follows:

 

(i) Seller shall
have obtained amended final judgments in the Tax Foreclosure Actions for Lots 1 and 5 of the Adjacent Land, correcting the legal
descriptions attached thereto, and either (y) the court confirms in the amended final judgments that the statutory three (3) month
appeal period relates back to the entry of the original final judgment; or (z) either (A) no party shall have filed a motion to
vacate the judgments in the Tax Foreclosure Actions or exercised a statutory right of redemption on Lots 1 and 5 on or before three
(3) months following the entry of the amended final judgments in the Tax Foreclosure Actions for Lots 1 and 5 of the Adjacent Land
(the “Appeal Period”), or if any such motion is filed or exercise occurs, the matter is conclusively resolved
in a manner that insures, in Purchaser’s reasonable discretion, that the Three Land and Four Land continue to receive the
benefit of the easements contain in Deed Book 4843, Page 193 (the “Easements”); or (B) Seller shall have agreed
to indemnify, defend and hold harmless Purchaser for any amounts required to paid to insure that the Three Land and Four Land continue
to receive the benefit of the Easements arising as a result of a successful appeal filed by a party within the Appeal Period, pursuant
to an indemnity agreement mutually acceptable to Seller and Purchaser, in which case Purchaser shall waive all of the conditions
set forth in this Section 5(b)(xii) and proceed to Closing, notwithstanding that the Appeal Period has not yet expired;
and (ii) no party shall have filed a motion to vacate the judgments in the Tax Foreclosure Actions or exercised a statutory right
of redemption on the Adjacent Land on or before September 25, 2013, or if any such motion is filed or exercise occurs, the matter
is conclusively resolved in a manner that insures, in Purchaser’s reasonable discretion, that the Three Land and Four Land
continue to receive the benefit of the Easements.

 

3.     Section
18(b)(iv) shall be created to read as follows:

 

(iv) Any and
all tax liabilities (including, but not limited to those under the PILOT Agreement) with respect to the Real Property and/or the
Adjacent Land which relate to periods prior to the Closing, regardless of when they are asserted.

 

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4.     Exhibits.
Seller and Purchaser acknowledge that they have agreed upon (i) the price allocation attached to this Amendment as Exhibit
B; (ii) the form of Guaranty Agreement attached to this Amendment as Exhibit D; (iii) the form of Management Agreement
attached to this Amendment as Exhibit G; (iv) the form of Interim Licensure Arrangements attached to this Amendment as
Exhibit K; and (v) the form of Income Support Agreement attached to this Amendment as Exhibit P, and the foregoing
exhibits are hereby incorporated into the Agreement.

 

5.     Effect
of Amendment. To the extent any provisions contained herein conflict with the Agreement or any other agreements between
Seller and Buyer, oral or otherwise, the provisions contained herein shall supersede such conflicting provisions contained in
the Agreement or other agreements. Except as specifically modified by this Amendment, the Agreement remains in full force and
effect and is in all events ratified, confirmed and approved.

 

6.     Counterparts.
This Amendment may be executed in multiple counterparts, each of which shall be deemed to be an original, but all of which, together,
shall constitute one and the same instrument. Delivery of signatures by e-mail or facsimile shall be valid and binding.

 

IN WITNESS WHEREOF, the
Purchaser has executed this Amendment on the date first above written.

 

	 	PURCHASER:
	 	 
	 	Woodbury Mews III, LLC
	 	 
	 	By:	/s/ John Mark Ramsey
	 	Name: John Mark Ramsey 
	 	Its:  Authorized Signatory 
	 	 
	 	Woodbury Mews IV, LLC
	 	 
	 	By:	/s/ John Mark Ramsey
	 	Name: John Mark Ramsey 
	 	Its:  Authorized Signatory 
	 	 
	 	Woodbury Mews Land Parcels, LLC
	 	 
	 	By:	/s/ John Mark Ramsey
	 	Name: John Mark Ramsey 
	 	Its:  Authorized Signatory 

 

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IN WITNESS WHEREOF,
the Seller has executed this Amendment on the date first above written.

 

	 	 	SELLER:
	 	 	 	 	 	 
	 	 	
        THREE WM REAL ESTATE, LLC,

        a Delaware limited liability company

	 	 	 	 	 	 
	 	 	By:	WMRE THREE, LLC, a Delaware limited liability company, its sole member and manager
	 	 	 	 	 	 
	 	 	 	By:	CHG WMRE, LLC, a Delaware limited 
	 	 	 	 	liability company, its manager
	 	 	 	 	 	 
	 	 	 	 	By: /s/ Ken Assiran                                             
	 	 	 	 	Name: Ken Assiran
	 	 	 	 	Title: President
	 	 	 	 	 	 
	 	 	THREE WM OPERATING, LLC,
	 	 	a Delaware limited liability company
	 	 	 	 	 	 
	 	 	By:	WMRE THREE, LLC, a Delaware limited liability company, its sole member and manager
	 	 	 	 	 	 
	 	 	 	By:	CHG WMRE, LLC, a Delaware limited 
	 	 	 	 	liability company, its manager
	 	 	 	 	 
	 	 	 	 	By: /s/ Ken Assiran                                             
	 	 	 	 	Name:Ken Assiran
	 	 	 	 	Title: President

 

[SIGNATURES CONTINUE ON FOLLOWING
PAGE.]

 

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	 	 	SELLER:
	 	 	 	 	 	 
	 	 	
        FOUR WM REAL ESTATE, LLC,

        a Delaware limited liability company

	 	 	 	 	 	 
	 	 	By:	WMRE FOUR, LLC, a Delaware limited liability company, its sole member and manager
	 	 	 	 	 	 
	 	 	 	By:	CHG WMRE, LLC, a Delaware limited
	 	 	 	 	liability company, its manager
	 	 	 	 	 	 
	 	 	 	 	By: /s/ Ken Assiran                                             
	 	 	 	 	Name: Ken Assiran
	 	 	 	 	Title: President
	 	 	 	 	 	 
	 	 	FOUR WM OPERATING, LLC,
	 	 	a Delaware limited liability company
	 	 	 	 	 	 
	 	 	By:	WMRE FOUR, LLC, a Delaware limited liability company, its sole member and manager
	 	 	 	 	 	 
	 	 	 	By:	CHG WMRE, LLC, a Delaware limited
	 	 	 	 	liability company, its manager
	 	 	 	 	 
	 	 	 	 	By: /s/ Ken Assiran                                             
	 	 	 	 	Name: Ken Assiran
	 	 	 	 	Title: President

 

    	 

    	 

    

 

EXHIBIT B

 

PURCHASE PRICE ALLOCATION

 

	Facility	 	Amount	 
	Three Facility	 	$	22,775,000	 
	Four Facility	 	$	15,184,000	 
	Adjacent Parcels	 	$	1,040,000	 
	TOTAL PURCHASE PRICE	 	$	39,000,000	 

 

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EXHIBIT D

 

FORM OF GUARANTY AGREEMENT

 

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EXHIBIT G

 

FORM OF MANAGEMENT AGREEMENT

 

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EXHIBIT K

 

FORM OF INTERIM LICENSURE ARRANGEMENTS

 

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EXHIBIT
P

 

FORM OF INCOME SUPPORT AGREEMENT

 

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EXHIBIT Q

 

PROJECTED ANNUAL SERVICE CHARGES

 

    	7FOURTH AMENDMENT TO

AGREEMENT OF SALE

 

THIS FOURTH
AMENDMENT TO AGREEMENT OF SALE (the “Amendment”) is entered into as of the 21 day of October, 2013,
between THREE WM REAL ESTATE, LLC, THREE WM OPERATING, LLC, FOUR WM REAL ESTATE, LLC, FOUR WM OPERATING, LLC, each a
Delaware limited liability company (individually and collectively, the “Seller”) and WOODBURY MEWS III
URBAN RENEWAL, LLC (f/k/a WOODBURY MEWS III, LLC), Woodbury Mews IV Urban
Renewal, LLC (f/k/a WOODBURY MEWS IV, LLC), Woodbury Mews Urban Renewal
Land Parcels, LLC (f/k/a WOODBURY MEWS LAND PARCELS, LLC) and WM
Land Urban Renewal TRS, LLC (each a Delaware limited liability company (individually and collectively, the
“Purchaser”).

 

RECITALS:

 

A.           Seller
and Purchaser are parties to that certain Agreement of Sale dated June 26, 2013, as amended (collectively, the “Agreement”),
pursuant to which Seller agreed to sell, and Purchaser agreed to purchase, certain real property located at 122 and 124 Green Avenue,
Woodbury, New Jersey, as more particularly described in the Agreement.

 

B.           Seller
and Purchaser desire to amend the Agreement, upon the terms and conditions set forth in this Amendment.

 

NOW, THEREFORE,
in consideration of the mutual covenants contained herein and other good and valuable consideration, the receipt and sufficiency
of which are hereby acknowledged, the parties agree as follows:

 

AGREEMENTS:

 

1.     Recitals,
Definitions. The foregoing recitals are true and correct and are incorporated herein by reference. Capitalized but undefined
terms used in this Amendment shall have the meanings given to them in the Agreement.

 

1.     The
Definition of “Purchaser”. In order to reflect Purchaser’s updated organizational structure and the
amendment to the legal name of the Purchasers, all references in the Agreement to “Purchaser” shall now refer to:
WOODBURY MEWS III URBAN RENEWAL, LLC (f/k/a WOODBURY MEWS III, LLC), Woodbury Mews IV
Urban Renewal, LLC (f/k/a WOODBURY MEWS IV, LLC), Woodbury Mews Urban Renewal Land
Parcels, LLC (f/k/a WOODBURY MEWS LAND PARCELS, LLC) and WM Land Urban Renewal
TRS, LLC.

 

2.     Purchase
Price  (a) Section 2(a) of the Agreement is hereby amended to read as follows (additions are shown as double-underlined
and deletions are shown as struck through):

 

The purchase
price (the “Purchase Price”) for the Property shall be THIRTY
EIGHT MILLION ONE HUNDRED TWENTY SIX THOUSAND AND ONE HUNDRED FIFTY SIX DOLLARS ($38,126,156.00) THIRTY NINE
MILLION and 00/100 DOLLARS ($39,000,000.00), subject to prorations and the adjustments expressly set forth in this Agreement;
provided, however, that if the City adopts a reallocation of the payments under the PILOT Agreement, then the Purchase
Price shall be reduced by the PILOT Price Adjustment (as hereinafter defined). The “PILOT Price Adjustment”
shall be calculated as follows: (i) the net increase in the annual payments under the PILOT Agreement adopted by the City with
respect to Lots 2, 3, 4 and 5 for 2013 shall be divided by 0.077; and (ii) the sum of $30,000 shall be subtracted from the quotient
calculated pursuant to clause (i) of this sentence. Prior to the expiration of the Due Diligence Period, Seller and Purchaser
shall agree on a reasonable allocation of the Purchase Price payable for each individual property described on Exhibit A-2
(each, an “Individual Property”) which shall be allocated in the form set forth on Exhibit B (each such
allocated portion, an “Allocated Purchase Price”). In addition, Seller and Purchaser shall agree on a reasonable
further allocation of the Purchase Price as between (a) the Land and the Improvements, (b) the Personalty, and (c) the
Intangibles prior to the expiration of the Due Diligence Period.

 

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3.    Exhibits.
Seller and Purchaser acknowledge that they have agreed upon the price allocation attached to this Amendment as Exhibit B
which exhibit is hereby incorporated into the Agreement.

 

4.    Effect
of Amendment. To the extent any provisions contained herein conflict with the Agreement or any other agreements between
Seller and Buyer, oral or otherwise, the provisions contained herein shall supersede such conflicting provisions contained in the
Agreement or other agreements. Except as specifically modified by this Amendment, the Agreement remains in full force and effect
and is in all events ratified, confirmed and approved.

 

5.    Counterparts.
This Amendment may be executed in multiple counterparts, each of which shall be deemed to be an original, but all of which, together,
shall constitute one and the same instrument. Delivery of signatures by e-mail or facsimile shall be valid and binding.

 

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IN WITNESS WHEREOF, the Purchaser has executed
this Amendment on the date first above written.

 

	 	PURCHASER:
	 	 
	 	Woodbury Mews III Urban Renewal, LLC
	 	 
	 	By:	/s/ John Mark Ramsey 
	 	Name: John Mark Ramsey 
	 	Its:  Authorized Signatory 
	 	 
	 	WOODBURY MEWS IV URBAN RENEWAL, LLC
	 	 
	 	By:	/s/ John Mark Ramsey 
	 	Name: John Mark Ramsey 
	 	Its:  Authorized Signatory 
	 	 
	 	Woodbury Mews URBAN RENEWAL Land Parcels, LLC
	 	 
	 	By:	/s/ John Mark Ramsey 
	 	Name: John Mark Ramsey 
	 	Its:  Authorized Signatory 
	 	 
	 	WM LAND URBAN RENEWAL TRS, LLC
	 	 
	 	By:	/s/ John Mark Ramsey 
	 	Name: John Mark Ramsey 
	 	Its:  Authorized Signatory 

 

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IN WITNESS WHEREOF,
the Seller has executed this Amendment on the date first above written.

 

	 	 	SELLER:
	 	 	 	 	 	 
	 	 	
        THREE WM REAL ESTATE, LLC,

        a Delaware limited liability company

	 	 	 	 	 	 
	 	 	By:	WMRE THREE, LLC, a Delaware limited liability company, its sole member and manager
	 	 	 	 	 	 
	 	 	 	By:	CHG WMRE, LLC, a Delaware limited 
	 	 	 	 	liability company, its manager
	 	 	 	 	 	 
	 	 	 	 	By: /s/ Ken Assiran                                                 
	 	 	 	 	Name:  Ken Assiran
	 	 	 	 	Title:  President
	 	 	 	 	 	 
	 	 	THREE WM OPERATING, LLC,
	 	 	a Delaware limited liability company
	 	 	 	 	 	 
	 	 	By:	WMRE THREE, LLC, a Delaware limited liability company, its sole member and manager
	 	 	 	 	 	 
	 	 	 	By:	CHG WMRE, LLC, a Delaware limited 
	 	 	 	 	liability company, its manager
	 	 	 	 	 
	 	 	 	 	By: /s/ Ken Assiran                                                 
	 	 	 	 	Name:  Ken Assiran
	 	 	 	 	Title: President

 

[SIGNATURES CONTINUE ON FOLLOWING
PAGE.]

 

 

    	4

    	 

    

 

	 	 	SELLER:
	 	 	 	 	 	 
	 	 	
        FOUR WM REAL ESTATE, LLC,

        a Delaware limited liability company

	 	 	 	 	 	 
	 	 	By:	WMRE FOUR, LLC, a Delaware limited liability company, its sole member and manager
	 	 	 	 	 	 
	 	 	 	By:	CHG WMRE, LLC, a Delaware limited
	 	 	 	 	liability company, its manager
	 	 	 	 	 	 
	 	 	 	 	By: /s/ Ken Assiran                                                 
	 	 	 	 	Name: Ken Assiran
	 	 	 	 	Title: President
	 	 	 	 	 	 
	 	 	FOUR WM OPERATING, LLC,
	 	 	a Delaware limited liability company
	 	 	 	 	 	 
	 	 	By:	WMRE FOUR, LLC, a Delaware limited liability company, its sole member and manager
	 	 	 	 	 	 
	 	 	 	By:	CHG WMRE, LLC, a Delaware limited
	 	 	 	 	liability company, its manager
	 	 	 	 	 
	 	 	 	 	By:  /s/ Ken Assiran                                                 
	 	 	 	 	Name: Ken Assiran
	 	 	 	 	Title:  President

 

    	 

    	 

    

 

EXHIBIT B

 

PURCHASE PRICE ALLOCATION

 

	Facility	 	Amount	 
	Three Facility	 	$	22,251,694	 
	Four Facility	 	$	14,834,462	 
	Adjacent Parcels	 	$	1,040,000	 
	Lots 1&6	 	$	940,000	 
	Lots 4&5	 	$	100,000	 
	TOTAL PURCHASE PRICE	 	$	38,126,156	 

 

    	2

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