Document:

ARC NYRR 06.30.2013 EX 10.56 10-Q  SS

Exhibit 10.56

THIRD AMENDMENT TO
SALE AND PURCHASE AGREEMENT

THIRD AMENDMENT TO SALE AND PURCHASE AGREEMENT, made as of July 5, 2013 (this “Amendment”), by and among the sellers set forth below (each individually a “Seller” and collectively the “Sellers”), and American Realty Capital New York Recovery REIT, Inc., a Maryland corporation (“Purchaser”).  

W I T N E S S E T H:

WHEREAS, Purchaser and Sellers entered into a certain Sale and Purchase Agreement as of April 30, 2013 between Sellers and Purchaser, as modified by that certain First Amendment To Sale And Purchase Agreement, made as of June 21, 2013 between Sellers and Purchaser, that certain Second Amendment To Sale And Purchase Agreement, made as of June 25, 2013 between Sellers and Purchaser and that certain Assignment of Sale and Purchase Agreement dated of even date herewith (as amended, the “Agreement”), with respect to the purchase and sale of 100% of the shares of Varick Investments S.a.r.l., a Luxembourg private limited liability company, which company is the sole shareholder of Varick Studios Inc., a Delaware corporation, which company is the sole member of 50 Varick LLC (“Property Owner”), which entity is the owner of the Property (as defined therein) located at 50 Varick Street, New York, NY; and 

WHEREAS, Purchaser and Sellers desire to modify the Agreement as set forth in this Amendment.  

NOW, THEREFORE, in consideration of the foregoing premises and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged by Sellers and Purchaser, the parties hereto hereby agree as follows: 

1.    Incorporation of Definitions.  All capitalized terms used but not otherwise defined in this Amendment shall have the meanings ascribed to them in the Agreement.   

2.    Verizon Claim.  (a)    The parties acknowledge that Verizon New York Inc. (“Verizon”) has commenced an action (the “Pending Action”) against Property Owner in connection with alleged damage suffered by Verizon as a result of ongoing construction at the Property.  As a result of the Pending Action, Property Owner has caused (or will cause) a claim to be filed with its insurance carriers and/or the insurance carrier of the contractors performing such construction, as the case may be, pursuant to the then current insurance policies maintained by Sellers and/or such contractors at the time of the alleged incident (together, the “Insurance Policies”) in order to recover funds necessary to satisfy the claims made by Verizon.

(b)     At the Closing, the sum of Five Hundred Thousand Dollars ($500,000.00)(the “Verizon Claim Escrow Funds”) shall be placed in escrow with Donovan LLP (the “Verizon Claim Escrow Agent”) by the Sellers as described below, which Verizon Claim Escrow Funds shall be held and disbursed in accordance with the terms and conditions set forth herein. Purchaser acknowledges that $250,000 of such Verizon Claim Escrow Funds will be deposited by retaining such amount from the Purchase Price due to Sellers at the Closing and Greencage S.A., one of the Sellers, shall deposit the balance on behalf of Sellers.

(c)    The Verizon Claim Escrow Funds shall be held in escrow until such time as the Trigger Date (hereinafter defined) shall have occurred, at which time, the Verizon Claim Escrow Funds shall be released and disbursed in accordance with subsection (d) below.  For the purposes hereof, the “Trigger Date” shall 

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be the date upon which the Pending Action is fully and finally resolved such that such Pending Action is either (1) withdrawn in its entirety, with prejudice, pursuant to a settlement agreement or otherwise, or (2) a final and unappealable judgment is rendered with respect to the Pending Action (the “Trigger Date”).  Purchaser shall use commercially reasonable efforts to persuade the insurers who issued the Insurance Policies to settle the Pending Action with Verizon prior to January 1, 2014.   
        
(d) Upon the occurrence of the Trigger Date, the Verizon Claim Escrow Funds shall be disbursed as follows:

(i) In the event Verizon recovers a sum which is fully covered by the Insurance Policies (whether as a result of a settlement, judgment or otherwise), upon the payment in full to Verizon by the applicable insurance carriers, the full amount of the Verizon Claim Escrow Funds shall be released to Seller, or as Seller shall so direct; or 

(ii) In the event the insurance proceeds are insufficient to satisfy all amounts owed to Verizon with respect to the Pending Action, or the Insurance Policies shall not cover all or a portion of the amounts owed to Verizon in connection with the Pending Action, such that Verizon is entitled to recover a sum which is in excess of (or not covered by) the Insurance Policies (whether as a result of a settlement, judgment or otherwise), (A) a portion of the Verizon Claim Escrow Funds in an amount equal to the difference between (a) the final amount determined to be payable to Verizon and (b) the amount actually received by Verizon from the proceeds payable out of the Insurance Policies, shall be released by Verizon Claim Escrow Agent to Verizon in full satisfaction of the amounts owed to Verizon without the need for any further authorization or acknowledgement from Sellers; and (B) the balance of the Verizon Claim Escrow Funds shall be released to Seller, or as Seller shall so direct.  In addition, after the earlier of January 2, 2014, or the date insurance coverage under the Insurance Policies shall be denied by the applicable insurance carriers (the “Forbearance Expiration Date”), Purchaser, acting through Property Owner, shall have the right to offset from the Verizon Claims Escrow Funds any legal fees and/or pre-judgment interest payable by Property Owner to Verizon due in connection with the Pending Action.  

(e)    If, in Purchaser’s sole, but commercially reasonable discretion, Purchaser believes that the Pending Action, including any legal fees or pre-judgment interest which may be due to Verizon, might, in the aggregate, exceed the total amount of the Verizon Claim Escrow Funds, Purchaser, acting through Property Owner, shall have the right to settle the Pending Action at any time after the Forbearance Expiration Date, without any further authorization from Sellers. (provided, however, that prior to so settling, Purchaser shall notify Sellers in writing in accordance with Paragraph 7 of the Agreement and Sellers shall have five (5) business days to increase the Verizon Claim Escrow Funds by $50,000.00 by depositing such sum with Verizon Claim Escrow Agent, and this procedure shall continue until such time as Sellers elect not to increase the Verizon Claims Escrow Funds by $50,000.00).

(f)    Upon the distribution of the entire Verizon Claim Escrow Funds in accordance with this Amendment, Verizon Claim Escrow Agent and Seller will be discharged and released from any and all liability hereunder.

(g)    Notwithstanding anything to the contrary contained herein, Sellers acknowledge that all or a portion of the Verizon Claim Escrow Funds may not be recoverable by Sellers as a result of a release thereof in accordance with Section 2 and Section 4 hereof.  In the event the Insurance Policies do not fully cover the Pending Action (including any legal fees and/or pre-judgment interest), all or a portion of the Verizon Claim Escrow Funds may be forfeited by Sellers and Sellers shall have no further right or interest in such funds.  

(h)    The terms and conditions of this Section 2 shall survive the Closing.

3.    Verizon True-Up Payment.  (a)    The parties acknowledge and agree that Verizon owes Property Owner the sum of $60,543.00 (the “Verizon Receivable”) as a result of various adjustments and expenses made by and between Property Owner and Verizon; provided, however, Verizon has notified Sellers and Purchaser that Verizon shall not make payment of the Verizon Receivable to Property Owner until such time as the Pending Action is resolved.  Accordingly, Purchaser agrees that Purchaser shall have no rights in or to the Verizon Receivable, and, upon receipt of the Verizon Receivable, or any portion thereof, Purchaser shall cause same to be delivered to Sellers.  Purchaser shall be under no obligation to take any action (including, without limitation, litigation) to cause Verizon to make payment of the Verizon Receivable.  The terms and conditions of this Section 3 shall survive the Closing. 

4.    Roof Repair – Foundations Claim.    (a)    The parties acknowledge and agree that Foundations Group I, Inc. (“Foundations”) previously completed work on the roof of the building where the Property is located (the “Roof Work”), which Roof Work was for the benefit of the Condominium, and not any individual unit owner thereof.  The total sum due from the Condominium for the Roof Work is $450,510.00 (the “Cost of the Roof Work”), which sum is currently being held by the Condominium in a reserve account (the “Condominium Reserve Account”), and which sum cannot be released without the unanimous consent of the Board.  

(b) The parties hereto acknowledge and agree that, notwithstanding anything to the contrary contained in the Declaration or the Condominium Documents, the Cost of the Roof Work shall be allocated as follows:  (i) Verizon shall be responsible for $199,232.30 (“Verizon’s Share of the Cost of the Roof Work”); and (ii) the Property Owner shall be responsible for $251,277.70.   

(c)    The Board member representing Verizon has withheld its consent to the release of Verizon’s Share of the Cost of the Roof Work from the Condominium Reserve Account for payment of the Roof Work, and accordingly, Sellers and Purchaser hereby agree as follows:

(i)    At the Closing, Purchaser shall receive a credit in the amount of $18,651.11 (“Roof Work Credit”), which sum represents a portion of the Cost of the Roof Work to be paid by the Property Owner; 

(ii)    If, and to the extent that, Foundations requires payment of the Cost of the Roof Work by the Condominium at any time prior to the Board issuing its consent to the release of the full Cost of the Work (including Verizon’s Share of the Cost of the Work), Purchaser, acting through Property Owner, shall have the right to send written notice to Verizon Claim Escrow Agent, with a simultaneous copy being delivered to Sellers (the “Foundations Payment Notice”), instructing Verizon Claim Escrow Agent to disburse the sum of $199,232.30 to Foundations.  Upon receipt of the Foundations Payment Notice, Verizon Claim Escrow Agent shall immediately, without any further notice, and without any right of Sellers to object, cause the sum of $199,232.3.30 to be paid to Foundations, or as Foundations may require.   In such event, Sellers shall automatically be vested with the right to recover the sum of $199,232.30 from either (1) the Property Owner and/or the Condominium in the event the Board ultimately approves the release of funds equal to Verizon’s Share of the Cost of the Roof Work from the Condominium Reserve Account prior to the resolution of the Pending Action or (2) from the funds the Property Owner might otherwise collect from the Insurance Policies in accordance with Section 2 hereinabove if the Board does not authorize the release of funds equal to Verizon’s Share of the Cost of the Roof Work from the Condominium Reserve Account prior to the resolution of the Pending Action (and, at Seller’s election, Purchaser shall use commercially reasonable efforts to cause such sums to be delivered to Sellers) .  In the event that Purchaser or Property Owner fail to return to Sellers sums rightfully due to Sellers under 

this Agreement and Sellers initiate a lawsuit to recover such sums, Purchaser or Property Owner, as the case may be, shall reimburse Sellers for their reasonable attorneys’ fees and costs if Sellers are successful in such lawsuit.

(d)    The terms and conditions of this Section 4 shall survive the Closing.

5.    Verizon Claim Escrow Agent. (a)    Verizon Claim Escrow Agent has agreed to hold the Verizon Claim Escrow Funds in accordance with the terms of this Amendment.  Verizon Claim Escrow Agent may rely upon the authenticity of any signature and the genuineness and validity of any writing received by Verizon Claim Escrow Agent pursuant to or otherwise relating to this Amendment.

(b)    Sellers and Purchaser recognize and acknowledge that Verizon Claim Escrow Agent is serving without compensation and solely as an accommodation to the parties hereto, and each agrees that Verizon Claim Escrow Agent shall not be liable to either of the parties for any error of judgment, mistake or act or omission hereunder or any matter or thing arising out of its conduct hereunder, except in the event of Verizon Claim Escrow Agent’s gross negligence or willful misconduct.

(c)    Seller and Purchaser jointly and severally agree to indemnify and hold harmless Verizon Claim Escrow Agent from and against any and all costs, claims, damages or expenses (including, without limitation, reasonable attorneys’ fees), howsoever occasioned, that may be incurred by Verizon Claim Escrow Agent acting under this Amendment, except in the event of Verizon Claim Escrow Agent’s gross negligence or willful misconduct.

(d)    All notices to be given under this Amendment to Verizon Claim Escrow Agent must be in writing and given as provided in this paragraph and will be deemed to be validly given if delivered by hand or any nationally recognized overnight delivery service or courier to an officer or agent of the party at the address provided below.  The address for Verizon Claim Escrow Agent is:

Donovan LLP
152 Madison Avenue, 14th Floor
New York, New York 10016
Attention:  Nicholas T. Donovan, Esq.

(e)    Nothing contained herein shall prevent or otherwise preclude Verizon Claim Escrow Agent from representing Purchaser or any of its affiliates in connection with the Property or in any other matter.

6.    Purchase Price.  The last sentence of Section 2(a)(iii) of the Agreement is hereby deleted in its entirety and the following is inserted in lieu thereof: 

“Notwithstanding the foregoing, the adjusted Purchase Price may not be less than $28,685,225.00 US Dollars or more than $30,722,527.00 US Dollars."    

7.    Counterparts. This Amendment may be executed in any number of counterparts and by each party on separate counterparts.  Each counterpart is an original, but all counterparts, taken together, shall constitute one and the same agreement.  Delivery of an executed counterpart signature page of this Amendment by e-mail (pdf ) or fax shall be as effective as delivery of a manually executed counterpart of this Amendment.   

8.    Reaffirmation.  Except as expressly amended by this Amendment, the parties hereto agree that the terms, conditions and provisions of the Agreement are hereby ratified and reaffirmed and shall 

remain in full force and effect.  This Amendment and the Agreement shall hereafter be read and construed together as a single document, and all references to the “Agreement” contained in the Agreement or any other instrument shall hereafter refer to the Agreement as amended by this Amendment. Purchaser agrees that in no event shall Sellers have any liability for damages or other sums under this Amendment in excess of the Verizon Claim Escrow Funds. Further, Purchaser agrees that (unless required by law) it will not disclose the terms and provisions of this Amendment to the Insurance Companies or their counsel, the plaintiff or any of the defendants under the Pending Action or their counsel or any other third parties without the consent of Sellers (given or withheld in its sole discretion). Seller hereby approves that certain Assignment of Sale and Purchase Agreement dated of even date herewith between Thor 50 Varick LLC, a Delaware limited liability company, and American Realty Capital New York Recovery REIT, Inc., a Maryland corporation, as assignee.

IN WITNESS WHEREOF, this Amendment has been duly executed by the parties hereto as of the day and year first above written.  

PURCHASER:  
AMERICAN REALTY CAPITAL NEW YORK RECOVERY REIT, INC.
        

By:    /s/ Michael Happel    
       Name:  Michael Happel    
       Title:  Executive VP & Chief Investment Officer

SELLERS:

SIGNED by:   /s/ Alessandro Cajrati Crivelli          
Alessandro Cajrati Crivelli, as attorney-in-fact for GREENCAGE S.A., Société de Titrisation, pursuant to Power of Attorney, dated March 4, 2013             

SIGNED by:    /s/ Alessandro Cajrati Crivelli          
Alessandro Cajrati Crivelli, as attorney-in-fact for KENSINGTON SQUARE HOLDING S.A., Société de Titrisation, pursuant to Power of Attorney, dated March 4, 2013        

SIGNED by:    /s/ Alessandro Cajrati Crivelli          
Alessandro Cajrati Crivelli, as attorney-in-fact for SCLAREA FOUR S.A., pursuant to Power of Attorney, dated March 4, 2013 

SIGNED by:   /s/ Alessandro Cajrati Crivelli          
Alessandro Cajrati Crivelli, as attorney-in-fact for HAWKSFORD TRUSTEES JERSEY LTD as Trustee of the Dog Trust, pursuant to Power of Attorney, dated March 4, 2013        
        
SIGNED by:   /s/ Alessandro Cajrati Crivelli          
Alessandro Cajrati Crivelli, as attorney-in-fact for HUERTAS GROUP LTD., pursuant to Power of Attorney, dated March 4, 2013         
        
SIGNED by:   /s/ Alessandro Cajrati Crivelli          
Alessandro Cajrati Crivelli, as attorney-in-fact for AREPO FIDUCIARA S.R.L., pursuant to Power of Attorney, dated March 4, 2013        
        
SIGNED by:   /s/ Alessandro Cajrati Crivelli          
Alessandro Cajrati Crivelli, as attorney-in-fact for TIZIANI CAPITAL LIMITED, pursuant to Power of Attorney, dated March 4, 2013         
        
SIGNED by:   /s/ Alessandro Cajrati Crivelli          
Alessandro Cajrati Crivelli, as attorney-in-fact for OMNIAFIN S.P.A., pursuant to Power of Attorney, dated March 4, 2013        
        
SIGNED by:   /s/ Alessandro Cajrati Crivelli          
Alessandro Cajrati Crivelli, as attorney-in-fact for SIMON  FIDUCIARA S.P.A., pursuant to Power of Attorney, dated March 4, 2013         
        

SIGNED by:   /s/ Alessandro Cajrati Crivelli          
Alessandro Cajrati Crivelli, as attorney-in-fact for KRUIDO S.A., pursuant to Power of Attorney, dated March 4, 2013        
        
SIGNED by:   /s/ Alessandro Cajrati Crivelli          
Alessandro Cajrati Crivelli, as attorney-in-fact for UDOLL MANAGEMENT LIMITED, pursuant to Power of Attorney, dated March 4, 2013         
    
SIGNED by:   /s/ Alessandro Cajrati Crivelli      
Alessandro Cajrati Crivelli, as attorney-in-fact for ANTONIO TAZARTES, pursuant to Power of Attorney, dated March 4, 2013         
        
SIGNED by:   /s/ Alessandro Cajrati Crivelli          
Alessandro Cajrati Crivelli, as attorney-in-fact for MARIA BARTON, pursuant to Power of Attorney, dated March 4, 2013        
        
SIGNED by:   /s/ Alessandro Cajrati Crivelli          
Alessandro Cajrati Crivelli, as attorney-in-fact for MARCO GOBBETTI, pursuant to Power of Attorney, dated March 4, 2013                 
    
SIGNED by:   /s/ Alessandro Cajrati Crivelli          
Alessandro Cajrati Crivelli, as attorney-in-fact for LUISA CAJRATI CRIVELLI, pursuant to Power of Attorney, dated March 4, 2013        
        
SIGNED by:   /s/ Alessandro Cajrati Crivelli          
Alessandro Cajrati Crivelli, as attorney-in-fact for AMEDEO CLAVARINO, pursuant to Power of Attorney, dated March 4, 2013         
        
SIGNED by:   /s/ Alessandro Cajrati Crivelli          
Alessandro Cajrati Crivelli, as attorney-in-fact for RICCARDO CAJRATI CRIVELLI, pursuant to Power of Attorney, dated March 4, 2013        
    
SIGNED by:   /s/ Alessandro Cajrati Crivelli          
Alessandro Cajrati Crivelli, as attorney-in-fact for GIORGIO CAJRATI CRIVELLI, pursuant to Power of Attorney, dated March 4, 2013         
        
SIGNED by:   /s/ Alessandro Cajrati Crivelli          
Alessandro Cajrati Crivelli, as attorney-in-fact for UBERTO CAJRATI CRIVELLI, pursuant to Power of Attorney, dated March 4, 2013        
        
SIGNED by:   /s/ Alessandro Cajrati Crivelli      
Alessandro Cajrati Crivelli, as attorney-in-fact for PAOLO CARDANO, pursuant to Power of Attorney, dated March 4, 2013         
    
SIGNED by:   /s/ Alessandro Cajrati Crivelli          
Alessandro Cajrati Crivelli, as attorney-in-fact for GIOVANNI DI VINCENZO, pursuant to Power of Attorney, dated March 4, 2013        
    

SIGNED by:   /s/ Alessandro Cajrati Crivelli      
Alessandro Cajrati Crivelli, as attorney-in-fact for ANDREA A. ZAMBON, pursuant to Power of Attorney, dated March 4, 2013        

SIGNED by:   /s/ Alessandro Cajrati Crivelli      
Alessandro Cajrati Crivelli, as attorney-in-fact for ROBERTO MANGIAVACCHI, pursuant to Power of Attorney, dated March 4, 2013        

SIGNED by:   /s/ Alessandro Cajrati Crivelli      
Alessandro Cajrati Crivelli, as attorney-in-fact for ANTONIO BELLONI, pursuant to Power of Attorney, dated March 4, 2013        

SIGNED by:   /s/ Alessandro Cajrati Crivelli  
Alessandro Cajrati Crivelli, as attorney-in-fact for ICS SECURITIES S.A R.L., Société de Titrisation, pursuant to Power of Attorney, dated March 4, 2013        

   /s/ Alessandro Cajrati Crivelli                                
ALESSANDRO CAJRATI CRIVELLI, individually 

Donovan LLP is executing this Third Amendment to Sale and Purchase Agreement solely for the purposes of acknowledging its obligations with respect to paragraph 2 of such Amendment.

VERIZON CLAIM ESCROW AGENT:                    

DONOVAN LLP
                            
                            
By:        /s/ Lee Eddison                 
          Name:  Lee Eddison
Title:  PartnerExhibit 10.57

 

ASSIGNMENT AGREEMENT

 

This Agreement (this
“Agreement”) dated as of this 5th day of July, 2013, between THOR 50 VARICK LLC, a Delaware limited
liability company (“Assignor”), having an office at c/o Thor Equities, LLC, 25 West 39th
Street, New York, New York 10018, and AMERICAN REALTY CAPITAL NEW YORK RECOVERY REIT, INC., a Delaware corporation (“Assignee”),
having an address at c/o American Realty Capital, 405 Park Avenue, 15th Floor, New York, New York 10022.

 

WITNESSETH:

 

WHEREAS, Assignor
is the purchaser under that certain Sale and Purchase Agreement dated April 30, 2013, between Assignor, as purchaser, and the
parties set forth on Schedule 1 attached hereto, as seller (collectively, “Seller”), as amended
by First Amendment to Purchase and Sale Agreement, dated as of June 21, 2013, and by Second Amendment to Purchase and Sale Agreement,
dated as of June 25, 2013, true and complete copies of which are attached hereto as Exhibit 1 (collectively, the “Purchase
Contract”), for the purchase of 100% of the shares (the “Shares”) of Varick Investments
S.a.r.l., a Luxembourg private limited liability company (the “Company”);

 

WHEREAS, the
Company is the sole shareholder of Varick Studios Inc., a Delaware corporation (“Delco”), which company
is the sole member of 50 Varick LLC (“US Propco”), which company is the owner of the commercial condominium
units designated as commercial condominium Unit A and Unit A2 pursuant to the Declaration (as such term is defined in the Purchase
Contract), located at 50 Varick Street, New York, NY 10013, Block 212, Lots 1301 and 1307, and all general common elements and
limited common elements appurtenant thereto (collectively, the “Property”): and

 

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WHEREAS, upon
the terms and conditions set forth in this Agreement, Assignor desires to sell and Assignee desires to purchase, all of Assignor’s
right, title and interest in and to the Purchase Contract with respect to the Shares and all other matters set forth in the Purchase
Contract;

 

NOW, THEREFORE,
in consideration of the mutual covenants and agreements set forth herein and for other good and valuable consideration, the receipt
and sufficiency of which are hereby acknowledged, and intending to be legally bound, the parties hereto hereby agree as follows:

 

1.    Subject
of Sale. Pursuant to the terms and conditions contained in this Agreement, Assignor agrees to assign all of its right,
title and interest in and to the Purchase Contract to Assignee, and Assignee agrees to assume all of Assignor’s obligations
under the Purchase Contract.

 

2.    Payment
of the Purchase Price.

 

(a)          Assignee
shall pay to Assignor the sum of Five Million Eight Hundred Sixty One Thousand Five Hundred and 00/100 Dollars ($5,861,500.00)
(the “Purchase Price”) as consideration for the assignment of Assignor’s right, title and interest
to purchase the Shares pursuant to the terms of the Purchase Contract to Assignee pursuant to the terms of this Agreement, by wire
transfer of immediately available funds.

 

(b)          In
addition, the parties acknowledge that Assignee (or an affiliate thereof), in accordance with the terms and conditions of Section
15 hereof, is simultaneously herewith purchasing from Thor 50 Varick Bridge Lender LLC, a Delaware limited liability company
(“Mezzanine Lender”), which is an affiliate of Assignor, the Mezzanine Loan (as defined in the Purchase
Contract) made to Delco in the original principal amount of Five Million and 00/100 Dollars ($5,000,000), which purchase of the
Mezzanine Loan shall be a present and absolute purchase and shall not be contingent upon the occurrence of the Closing (as defined
below).

 

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3.          The
Assignment; Assignee.

 

(a)    Provided
that Assignee has complied with all of the terms and conditions of this Agreement, Assignor shall, on the Closing Date, assign
to Assignee all of Assignor’s right, title and interest to acquire the Shares under the Purchase Contract and all of Assignor’s
other rights under the Purchase Contract, and Assignee shall assume from Assignor all of Assignor’s obligations, in and
to the Purchase Contract, to have and to hold the same unto Assignee and on the terms and conditions set forth herein (the “Assignment”)
pursuant to the Assignment and Assumption of Sale and Purchase Agreement attached hereto as Exhibit 2 (the “Assignment
and Assumption Agreement”). Notwithstanding the foregoing or anything to the contrary contained herein, (i) Assignee
agrees that it shall have no right to terminate or cancel the Purchase Contract pursuant to Section 3(c) thereof or otherwise
and (ii) Assignor agrees that prior to exercising any right of Assignor to terminate or cancel the Purchase Contract pursuant
to Section 3(c) thereof or otherwise, Assignor shall give prior written notice to Assignee of such intent to terminate or cancel,
and Assignee shall have the option, to be exercised in writing by notice to Assignor within one (1) Business Day after the giving
of such notice by Assignor, to accelerate the Closing of the Assignment, which Closing Date shall be one (1) Business Day after
the giving of such notice of exercise to Assignor, and the full Purchase Price shall be paid to Assignor on such accelerated Closing
Date. In the event that Assignee does not exercise its option to accelerate the Closing within such one (1) Business Day period,
Assignor may terminate or cancel the Purchase Contract at any time thereafter and this Agreement shall be automatically terminated,
and this Agreement shall be null and void and of no further force or effect, except for any provision which specifically survives
termination, and neither party hereto shall have any further claim against the other by reason of this Agreement.

 

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(b)          Assignor
and Assignee agree that Assignee is a newly formed single purpose Delaware limited liability company, the sole purpose of which
shall be to enter into this Agreement and acquire the Shares pursuant to the Purchase Contract.

 

4.          “As-Is”

 

(a)          Assignee
hereby agrees to accept the Assignment and the Assignment and Assumption Agreement from Assignor, and hereby acknowledges and agrees
that the Property and the Shares shall, on the date of the closing under the Purchase Contract, be in their “as-is, where-is”
condition on the date hereof, subject to use, wear, tear and natural deterioration, and such other matters as are set forth in
the Purchase Contract, including, without limitation, the construction of the Landlord’s Work (as defined in the Purchase
Contract), between the date hereof and the Closing Date and all Group Entities Liabilities (as defined in the Purchase Contract).
Furthermore, Assignee acknowledges that it shall accept the assignment of the Shares in strict accordance with the Purchase Contract.

 

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(b)          Assignee
acknowledges that it has investigated, and is satisfied with, the Shares and the Group Entities (as defined in the Purchase Contract),
the Property and the physical condition thereof, including expenses and operations and environmental matters, and all other matter
or things affecting or relating to the Shares, the Group Entities and the Property, and that Assignee is fully familiar with the
Shares, the Group Entities and the Property. Assignee acknowledges that it has received copies of the Spring Lease (as defined
in the Purchase Contract) and the Declaration and is fully familiar with the Spring Lease and the Declaration. Assignee acknowledges
and agrees that the Property shall, on the date of the closing under the Purchase Contract, be in its “as-is, where-is”
condition as of such closing, including without limitation, all environmental conditions and all latent and patent defects, and
subject to all ongoing construction. Assignee expressly acknowledges that it is fully familiar with the physical condition of the
Property as of the date hereof, Assignee hereby accepts the condition of the Property with all personalty, fixtures, trash, and
debris, if any, and Assignee further expressly acknowledges that Assignor has no obligation whatsoever with respect to the delivery
of the Property at Closing or the condition thereof and that Assignor has no obligation whatsoever to do any work in connection
with the Property, including without limitation, the Landlord’s Work. Neither Assignor, nor the employees, agents, representatives,
accountants or attorneys of Assignor, have made any verbal or written representations or warranties whatsoever with respect to
the Property, or the physical condition or operation of the Property, or any building systems thereof or personal property therein,
the revenues and expenses generated by and associated with the Property, the zoning, building and other laws, regulations and rules
applicable thereto or the compliance by the Property therewith. Except for the express representations and warranties of Assignor
contained herein, Assignee has not and will not rely on any representations or warranties made by Assignor, and Assignee acknowledges
that no such representations or warranties have been made by Assignor.

 

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(c)          OTHER
THAN AS EXPRESSLY SET FORTH HEREIN, IT IS EXPRESSLY UNDERSTOOD AND AGREED THAT ASSIGNOR IS NOT MAKING AND HAS NOT AT ANY TIME
MADE ANY WARRANTIES OR REPRESENTATIONS OF ANY KIND OR CHARACTER, EXPRESSED OR IMPLIED, WITH RESPECT TO THE SHARES, THE GROUP ENTITIES
AND THE PROPERTY, INCLUDING, BUT NOT LIMITED TO, ANY WARRANTIES OR REPRESENTATIONS AS TO HABITABILITY, MERCHANTABILITY, FITNESS
FOR A PARTICULAR PURPOSE, TITLE, ZONING, TAX CONSEQUENCES, LATENT OR PATENT PHYSICAL OR ENVIRONMENTAL CONDITIONS, UTILITIES, OPERATING
HISTORY OR PROJECTIONS, VALUATION, GOVERNMENTAL APPROVALS, THE COMPLIANCE OF THE SHARES, THE GROUP ENTITIES AND THE PROPERTY WITH
GOVERNMENTAL LAWS, THE TRUTH, ACCURACY OR COMPLETENESS OF THE SPRING LEASE, THE DECLARATION OR ANY OTHER INFORMATION PROVIDED
BY OR ON BEHALF OF ASSIGNOR TO ASSIGNEE, OR ANY OTHER MATTER OR THING REGARDING THE SHARES, THE GROUP ENTITIES AND THE PROPERTY.
ASSIGNEE ACKNOWLEDGES AND AGREES THAT UPON CLOSING UNDER THE PURCHASE CONTRACT, THE SHARES AND THE PROPERTY SHALL BE “AS
IS”, “WHERE IS”, WITH “ALL FAULTS”. OTHER THAN AS EXPRESSLY SET FORTH HEREIN, ASSIGNEE HAS NOT RELIED
AND WILL NOT RELY ON, AND ASSIGNOR IS NOT LIABLE FOR OR BOUND BY, ANY EXPRESS OR IMPLIED WARRANTIES, GUARANTIES, STATEMENTS, REPRESENTATIONS
OR INFORMATION PERTAINING TO THE SHARES, THE GROUP ENTITIES OR THE PROPERTY OR RELATING THERETO (INCLUDING SPECIFICALLY, WITHOUT
LIMITATION, PROPERTY INFORMATION PACKAGES DISTRIBUTED WITH RESPECT TO THE PROPERTY) MADE OR FURNISHED BY ASSIGNOR OR ANY REAL
ESTATE BROKER OR AGENT REPRESENTING OR PURPORTING TO REPRESENT ASSIGNOR, TO WHOMEVER MADE OR GIVEN, DIRECTLY OR INDIRECTLY, ORALLY
OR IN WRITING. SUBJECT TO THE PROVISIONS OF SECTIONS 4(a) AND (b) ABOVE, ASSIGNEE REPRESENTS TO ASSIGNOR THAT ASSIGNEE
HAS CONDUCTED SUCH INVESTIGATIONS OF THE SHARES, THE GROUP ENTITIES AND THE PROPERTY, INCLUDING BUT NOT LIMITED TO, THE PHYSICAL
AND ENVIRONMENTAL CONDITIONS THEREOF, AS ASSIGNEE DEEMS NECESSARY TO SATISFY ITSELF AS TO THE CONDITION OF THE SHARES, THE GROUP
ENTITIES AND THE PROPERTY AND THE EXISTENCE OR NONEXISTENCE OR CURATIVE ACTION TO BE TAKEN WITH RESPECT TO ANY HAZARDOUS OR TOXIC
SUBSTANCES ON OR DISCHARGED FROM THE PROPERTY, AND WILL RELY SOLELY UPON SAME AND NOT UPON ANY INFORMATION PROVIDED BY OR ON BEHALF
OF ASSIGNOR OR ITS AGENTS OR EMPLOYEES WITH RESPECT THERETO. UPON CLOSING, ASSIGNEE SHALL ASSUME THE RISK THAT ADVERSE MATTERS,
INCLUDING BUT NOT LIMITED TO, CONSTRUCTION DEFECTS AND ADVERSE PHYSICAL AND ENVIRONMENTAL CONDITIONS, MAY NOT HAVE BEEN REVEALED
BY ASSIGNEE’S INVESTIGATIONS, AND ASSIGNEE, UPON CLOSING, SHALL BE DEEMED TO HAVE WAIVED AND RELINQUISHED AS AGAINST ASSIGNOR
(AND ASSIGNOR’S OFFICERS, DIRECTORS, SHAREHOLDERS, MEMBERS, PRINCIPALS, EMPLOYEES AND AGENTS) ANY AND ALL CLAIMS, DEMANDS,
CAUSES OF ACTION (INCLUDING CAUSES OF ACTION IN TORT), LOSSES, DAMAGES, LIABILITIES, COSTS AND EXPENSES (INCLUDING ATTORNEYS’
FEES AND COURT COSTS) OF ANY AND EVERY KIND OR CHARACTER, KNOWN OR UNKNOWN, WHICH ASSIGNEE MIGHT HAVE ASSERTED OR ALLEGED AGAINST
ASSIGNOR (AND ASSIGNOR’S OFFICERS, DIRECTORS, SHAREHOLDERS, MEMBERS, PRINCIPALS, EMPLOYEES AND AGENTS) AT ANY TIME BY REASON
OF OR ARISING OUT OF ANY LATENT OR PATENT CONSTRUCTION DEFECTS OR PHYSICAL CONDITIONS, VIOLATIONS OF ANY APPLICABLE LAWS (INCLUDING,
WITHOUT LIMITATION, ANY ENVIRONMENTAL, ZONING OR BUILDING LAWS) OR UNDER THE DECLARATION AND ANY AND ALL OTHER ACTS, OMISSIONS,
EVENTS, CIRCUMSTANCES OR MATTERS REGARDING THE SHARES, THE GROUP ENTITIES OR THE PROPERTY.

 

    	6

    	 

    

 

5.          Adjustments:
Transfer Taxes.

 

All adjustments and
apportionments, if any, shall be made by Assignee at Closing directly with Seller pursuant to the terms of the Purchase Contract,
with Assignee responsible for all adjustments in favor of Seller thereunder, and entitled to the benefit of all adjustments in
favor of the purchaser thereunder. All New York State and New York City Real Property Transfer Taxes (“Transfer Taxes”)
payable in connection with the transfer of the Shares contemplated hereunder shall be paid by Seller at the Closing, except that
Assignor shall be responsible for the payment of any Transfer Taxes arising out of the Assignment.

 

6.          Closing.

 

(a)          Assignor
and Assignee shall close under this Agreement (the “Closing”) in accordance with all of the terms and
conditions of this Agreement, including with limitation, executing the Assignment and Assumption Agreement and Assignee’s
payment of the Purchase Price on the Closing Date. The “Closing Date” shall be the date that the Closing
occurs, provided that the Closing Date shall occur immediately prior to the “Closing Date” under and as defined in
the Purchase Contract (the “Purchase Contract Closing Date”). TIME BEING OF THE ESSENCE as to Assignee.
The Closing shall take place at the location designated in the Purchase Contract.

 

(b)          Assignee’s
obligations under this Agreement shall be subject to the satisfaction of the following conditions precedent (collectively, the
“Closing Conditions”) which may be waived in whole or in part by Assignee, provided such waiver is in
writing and signed by Assignee on or before the Closing Date:

 

(i)          All
of Assignor’s representations and warranties made in this Agreement shall be true and correct as of the date made and true
and correct in all material respects as of the Closing Date as if then made, so as to not result in a Material Adverse Effect (as
defined below);

 

    	7

    	 

    

 

(ii)         Assignor
shall not be in default under this Agreement, so as to not result in a Material Adverse Effect;

 

(iii)        Seller
shall not be in default under the Purchase Contract, so as to not result in a Material Adverse Effect, and Seller shall be ready
and willing to close on the sale of the Shares;

 

(iv)        There
shall be no casualty or condemnation to the Property such that Spring shall have a right to terminate the Spring Lease pursuant
to the terms and conditions thereof; and

 

(v)         The
Spring Lease and all guarantees delivered in connection therewith shall be in full force and effect, and Spring shall have executed
and delivered (x) a Second Amendment to Lease Agreement in the form attached hereto as Exhibit A, (y) a Tenant Estoppel
(as defined in the Purchase Contract) materially in accordance with the terms of the Purchase Contract and (z) the security deposit
required under the Spring Lease in the amount of $2,250,000.

 

A “Material
Adverse Effect” shall mean any material adverse effect on the purchase and ownership of the Shares.

 

7.          Title.

 

Assignee acknowledges
receipt of the pro forma title policy prepared by Royal Abstract of New York, LLC (“Royal”) for the Property
(the “Title Policy”), a copy of which is attached hereto as Exhibit 3 and made a part hereof.
Assignee agrees to insure the Property by the Title Policy, issued through Royal, at the Closing. Assignee acknowledges and agrees
that it shall be solely responsible for any and all charges due in connection with the closing under the Purchase Contract to be
paid by the purchaser thereunder and the Assignment and Assumption Agreement, including without limitation recording charges due
and owing upon the transactions contemplated hereunder, the cost of the Title Policy issued for the benefit of Assignee and any
other title charges with respect to the closing of the Property and the Assignment and Assumption Agreement.

 

    	8

    	 

    

 

8.          Broker.

 

Assignor and Assignee
represent that no broker, finder or other person brought about this transaction. Assignor and Assignee shall each indemnify and
hold the other free and harmless from and against any damages, costs or expenses (including, but not limited to, reasonable attorneys’
fees and disbursements) suffered by a party hereunder arising from a claim by any broker, finder or other person that such broker
or finder has dealt with Assignor or Assignee, as the case may be, in connection with this transaction. The provisions of this
Section 8 shall survive the Closing or termination of this Agreement.

 

9.          Notices.

 

Subject to the further
terms of this Section 9, all notices hereunder by either party to the other shall be sent by registered or certified mail,
return receipt requested, by hand messenger, or by overnight courier providing receipt of delivery, addressed as follows:

 

	If to Assignee to:	c/o American Realty Capital

                                                405 Park Avenue, 15th Floor

                                                New York, NY 10022

                                                Attention: Jesse Galloway, Esq.

	 	 
	With a copy to:	
        Donovan LLP

        152 Madison Avenue, 14th Floor

        New York, New York 10016

        Attention: Nicholas T. Donovan, Esq.

	 	 
	If to Assignor to:	
        Thor 50 Varick LLC,

        c/o Thor Equities, LLC

        25 West 39th Street

        New York, New York 10018

        Attention: Joseph J. Sitt and Cory Elbaum

	 	 
	With a copy to:	Morris Missry, Esq.

                                    c/o Wachtel Missry LLP

                                    885 Second Avenue

                                    New York, New York 10017

 

    	9

    	 

    

 

Notices shall be deemed
served on the Business Day (as defined below) that they are received by hand messenger, on the Business Day that they are received
via reputable overnight courier (such as Federal Express), three (3) days after the date of registration with the postal authorities
if sent by registered mail, three (3) days after the date of mailing if sent by certified mail. The attorneys may give notices
on behalf of the respective parties, and such notices shall have the same effect as if in fact subscribed by the party on whose
behalf it is given. For purposes of this Agreement, a “Business Day” is any day other than Saturday,
Sunday, or a New York or Federal holiday during the hours of 9AM- 5PM, or if not received during those hours, then the Business
Day immediately following receipt. Notices or other communications (including agreements) signed by the attorneys for the respective
parties shall be deemed binding upon the parties so long as the intention for such communications (including email agreements)
between the attorneys to be binding is clearly set forth therein

 

10.         Intentionally
Omitted.

 

11.         Assignment
and Recording.

 

This Agreement shall
not be assigned by Assignee without the prior written consent of Assignor, which may be withheld in Assignor’s sole and
absolute discretion. This Agreement shall not be recorded. A direct or indirect transfer of stock, membership interest or partnership
interests of Assignee or any of its beneficial owners, or the admission of new shareholders, members or partners into Assignee
or any of its beneficial owners shall be deemed an assignment of this Agreement, and accordingly any such transfers or admissions
shall be prohibited without the prior written consent of Assignor, which may be withheld in Assignor’s sole and absolute
discretion. In the event that this Agreement is either (a) assigned without the prior written consent of Assignor or (b) recorded,
such assignment or recording shall be deemed an automatic, material default hereunder, and in such event Assignor shall be entitled
to terminate this Agreement, whereupon this Agreement shall immediately be rendered null and void and of no further force and
effect, except for any provision which specifically survives termination.

 

    	10

    	 

    

 

12.  Default.

 

(a)    In
the event all of the Closing Conditions shall have been satisfied and Assignee shall default under this Agreement prior to the
Closing Date, the parties hereto agree that the damages that Assignor will sustain as a result thereof will be substantial. Accordingly,
the parties agree that following the satisfaction of the Closing Conditions, in the event of such default prior to the Closing
Date, Assignor shall have all remedies at law or in equity.

 

(b)    In
the event that this transaction fails to close as a direct result of Assignor’s default of its material obligations under
this Agreement, and Assignor shall have failed to cure such material breach prior to the date that is the later of the originally
scheduled Closing Date and thirty (30) days from the date of Assignee’s notice to cure any such material default, or if Seller
is unable or refuses to close in accordance with the Purchase Contract, Assignee’s sole and exclusive remedy shall be to
terminate this Agreement, whereupon this Agreement shall be null and void and of no further force or effect, except for any provision
which specifically survives termination, and neither party hereto shall have any further claim against the other by reason of this
Agreement.

 

(c)    In
the event a party hereto files any action or suit against another party hereto by reason of any breach of any of the covenants,
agreements or provisions contained in this Agreement, then in that event the prevailing party shall be entitled to have and recover
of and from the other party all reasonable attorneys' fees and costs resulting therefrom. For purposes of this Agreement, the
term "attorneys' fees" or "attorneys' fees and costs" shall mean all court costs and the fees and expenses
of counsel to the parties hereto, which may include printing, photostatting, duplicating and other expenses, air freight charges,
and fees billed for law clerks, paralegals and other persons not admitted to the bar but performing services under the supervision
of an attorney, and the costs and fees incurred in connection with the enforcement or collection of any judgment obtained in any
such proceeding. The provisions of this Section 12(c) shall survive the entry of any judgment, and shall not merge, or
be deemed to have merged, into any judgment.

 

    	11

    	 

    

 

13.         Communication:
Confidentiality.

 

(a)          Assignor
acknowledges and agrees that, between the date hereof and the Closing Date, Assignee and Assignee’s representatives, members,
officers, employees, contractors and/or agents shall be permitted to directly communicate with (i) Seller or any representative,
member, officer, employee, contractor, attorney, accountant or agent of Seller, (ii) the Condominium, the Board, Spring or the
Verizon Units Owner (as such terms are defined in the Purchase Contract), (iii) any governmental authority; (iv) any party to any
pending litigation or claim, in connection with this Agreement, the Purchase Contract, the Shares or the Property; and/or (v) any
other party which has information or knowledge relating to the Property, the Shares, the Spring Lease, the Condominium or any other
matter which is the subject of, or related in any manner to, the Purchase Contract and/or this Agreement; provided, however, that
a representative of Assignor must participate in any such communication, unless otherwise agreed by Assignor.

 

(b)          Except
as may be required by law, in connection with any court or administrative proceeding, or in connection with any required financial
disclosures or other filings with the Securities and Exchange Commission or other governmental agencies by Assignee and/or Assignee’s
affiliates, Assignee shall not issue or cause the publication of any press release or other public announcement, or cause, permit
or suffer any other disclosure which sets forth the existence or terms of the transactions contemplated hereby (other than to
Assignee’s consultants, advisors, attorneys, accountants, lenders and investors, who, in turn, shall be bound by this Section
13), without first obtaining the written consent of Assignor, which shall not be unreasonably withheld. Nothing contained
herein shall preclude the parties from issuing customary press releases following the Closing.

 

    	12

    	 

    

 

(c)          Failure
by Assignee to comply with this Section 13 shall be deemed an automatic, material default hereunder, and in such event
Assignor shall be entitled to terminate this Agreement and Escrow Agent is hereby irrevocably authorized to release the Deposit
to Assignor as liquidated damages at Assignor’s request, whereupon this Agreement shall immediately be rendered null and
void and of no further force and effect, except for any provision which specifically survives termination.

 

14.         Representations.
Warranties and Covenants.

 

(a)          Assignor
represents and warrants to Assignee that the following are true and correct in all material respects as of the date hereof:

 

(1)         This
Agreement constitutes, and each document and instrument to be executed and delivered by Assignor hereunder, when so executed and
delivered, shall constitute, the legal, valid and binding obligations of Assignor, enforceable in accordance with their respective
terms, covenants and conditions.

 

(2)         Assignor
(i) is the sole owner of the rights and interests of the purchaser under the Purchase Contract; (ii) is a duly organized limited
liability company licensed and/or qualified to conduct business in the State of New York; (iii) has all requisite power and authority
to enter into this Agreement and to consummate the transactions contemplated hereby; (iv) has full power and authority to enter
into and perform this Agreement and to enter into the documents to be executed and delivered in accordance with the terms hereof;
and (v) has full power and authority to consummate the transactions as contemplated herein.

 

    	13

    	 

    

 

(3)         Neither
the entering into of this Agreement, nor the consummation of the transactions contemplated hereunder, will constitute a violation
or breach by Assignor of any contract, writ, order, judgment, or other instrument or agreement to which Assignor is a party, or
to which it is subject to by which any of its assets or properties may be affected, or of any judgment, order, writ, injunction
or decree issued against or imposed upon it, or result in a violation of any applicable law, ordinance, rule or regulation of any
governmental authority affecting Assignor. The execution, delivery and performance of this Agreement by Assignor, and the consummation
of the transactions contemplated hereby, do not require Assignor to obtain any consent, authorization, or approval which has not
already been obtained.

 

(4)         Assignor
is not a Prohibited Person (as defined below). None of Assignor’s investors, affiliates or brokers or other agents (if any),
acting or benefiting in any capacity in connection with this Agreement is a Prohibited Person. The assets Assignor will transfer
to Assignee under this Agreement are not the property of, and are not beneficially owned, directly or indirectly, by a Prohibited
Person. The assets Assignor will transfer to Assignee under this Agreement are not the proceeds of specified unlawful activity
as defined by 18 U.S.C. §1956(c)(7). For purposes hereof, a “Prohibited Person” means any of the
following: (i) a person or entity that is listed in the Annex to, or is otherwise subject to the provisions of, Executive Order
No. 13224 on Terrorist Financing (effective September 24,2001) (the “Executive Order”); (ii) a person
or entity owned or controlled by, or acting for or on behalf of any person or entity that is listed in the Annex to, or is otherwise
subject to the provisions of, the Executive Order; (iii) a person or entity that is named as a “specially designated national”
or “blocked person” on the most current list published by the U.S. Treasury Department’s Office of Foreign Assets
Control (“OFAC”) at its official website, http://www.treas.gov/offices/enforcement/ofac; (iv)
a person or entity that is otherwise the target of any economic sanctions program currently administered by OFAC; or (v) a person
or entity that is affiliated with any person or entity identified in any of clauses (i), (ii), (iii) and/or (iv) above.

 

    	14

    	 

    

 

(5)         Assignor
is not a “foreign person” as defined in the Code Withholding Section.

 

(6)         A
true and complete copy of the Purchase Contract, including all amendment thereto is attached hereto as Exhibit 1. Seller
and Assignor are not presently negotiating any modifications or amendments to the Purchase Contract, and neither party has requested
an amendment or modification thereto.

 

(7)         Assignor
has not sent or received a notice of default under the Purchase Contract.

 

(b)          Assignee
represents and warrants to Assignor that the following are true and correct in all material respects as of the date hereof:

 

(1)         This
Agreement constitutes, and each document and instrument to be executed and delivered by Assignee hereunder, when so executed and
delivered, shall constitute, the legal, valid and binding obligations of Assignee, enforceable in accordance with their respective
terms, covenants and conditions.

 

(2)         Assignee
(i) is a duly organized limited liability company licensed and/or qualified to conduct business in the State of New York; (ii)
has all requisite power and authority to enter into this Agreement and to consummate the transactions contemplated hereby; (iii)
has full power and authority to enter into and perform this Agreement and to enter into the documents to be executed and delivered
in accordance with the terms hereof; and (iv) has full power and authority to consummate the transactions as contemplated herein.

 

    	15

    	 

    

 

(3)         Neither
the entering into of this Agreement, nor the consummation of the transactions contemplated hereunder, will constitute a violation
or breach by Assignee of any contract, writ, order, judgment, or other instrument or agreement to which Assignee is a party, or
to which it is subject to by which any of its assets or properties may be affected, or of any judgment, order, writ, injunction
or decree issued against or imposed upon it, or result in a violation of any applicable law, ordinance, rule or regulation of any
governmental authority affecting Assignee. The execution, delivery and performance of this Agreement by Assignee, and the consummation
of the transactions contemplated hereby, do not require Assignee to obtain any consent, authorization, or approval which has not
already been obtained.

 

(4)         Assignee
is not a Prohibited Person. None of Assignee’s investors, affiliates or brokers or other agents (if any), acting or benefiting
in any capacity in connection with this Agreement is a Prohibited Person. The assets Assignee will transfer to Assignor under this
Agreement are not the property of, and are not beneficially owned, directly or indirectly, by a Prohibited Person. The assets Assignee
will transfer to Assignor under this Agreement are not the proceeds of specified unlawful activity as defined by 18 U.S.C. §1956(c)(7).

 

(5)         Assignee
is not a “foreign person” as defined in the Code Withholding Section.

 

    	16

    	 

    

 

(c)          Assignor
covenants and agrees as follows:

 

(1)         To
the extent Assignor’s consent (as purchaser) is required pursuant to the Purchase Contract or the Declaration, Assignor shall
not grant such consent without obtaining the prior written consent of Assignee, which consent may be granted or withheld, in Assignee’s
sole and absolute discretion. In the event Seller requests Assignor’s consent pursuant to the Purchase Contract, Assignor
shall send a copy of the Seller’s request for consent to Assignee, and Assignee shall have a period of five (5) Business
Days to either grant or withhold its consent in connection with Seller’s request therefor. If Assignee fails to respond within
such five (5) Business Day period, and such failure continues for an additional three (3) Business Days following Assignee’s
receipt of a second (2nd) request for consent from Assignor which notice shall specifically reference this Section
14(c)(1), Assignee’s consent shall be deemed withheld and Assignor shall thereafter withhold its consent in connection
with Seller’s request therefor;

 

(2)         Assignor
shall not agree to amend, modify or terminate the Purchase Contract without the prior written consent of Assignee, which may be
granted or withheld in Assignee’s sole and absolute discretion;

 

(3)         Assignor
shall not waive or otherwise forfeit any of its rights under the Purchase Contract without the prior written consent of Assignee,
which may be granted or withheld in Assignee’s sole, but commercially reasonable discretion;

 

(4)         Assignor
shall provide Assignee with a copy of any notice received by Assignor in connection with the Purchase Contract, which shall be
delivered to Assignee within three (3) Business Days of Assignor’s receipt thereof;

 

(5)         On
or before the Closing Date, Assignor shall provide Assignee with any and all documents, correspondence or other information received
by Assignee from the Seller, including, without limitation, all records (including originals) for the operation of the Premises
and any other documents or instruments delivered pursuant to the Purchase Contract;

 

    	17

    	 

    

 

(6)         On
or before the Closing Date, Assignor shall provide Assignee with all Closing deliverables received from the Seller pursuant to
Section 4 of the Purchase Contract; and

 

(7)         At
the Closing, the tenant under the Spring Lease shall deliver to the landlord thereunder the security deposit required pursuant
to the Second Amendment to Lease Agreement.

 

(d)          The
representations, warranties and covenants of Assignor set forth herein are a material inducement to Assignee entering into this
Agreement and Assignee is relying on the truth and accuracy of same. Assignor hereby agrees that the representations, warranties
and covenants of Assignor shall be deemed repeated on, and shall be true and accurate in all material respects as of, the Closing
Date. If Assignee has actual knowledge of any matter which would constitute a material breach of Assignor’s representations
and warranties, Assignee shall notify Assignor of such material breach prior to the Closing Date, failing which Assignee shall
be deemed to waive any such material breach of Assignor’s representations and warranties. Assignor shall have the right to
attempt to cure any such material breach without being obligated to complete such cure, and Assignor shall have the right to cure
such material breach prior to the date is the later of the originally scheduled Closing Date and thirty (30) days from the date
of Assignee’s notice to cure any such material breach. In the event the representations, warranties and covenants contained
in this Agreement are not materially true and correct as of the Closing Date, subject to the cure right in the immediately preceding
sentence, so as to result in a Material Adverse Effect, Assignee may, as its sole remedy, terminate this Agreement and receive
the return of the Deposit, together with any interest earned thereon, whereupon neither party shall have any further rights or
obligations under this Agreement.

 

    	18

    	 

    

 

(e)          The
representations of Assignor set forth in this Agreement (collectively, the “Surviving Representations”) shall
survive the Closing under this Agreement for a period of six (6) months after the Closing Date (the “Survival Period”).
Each Surviving Representation shall automatically be null and void and of no further force and effect after the Survival Period
unless, prior to the end of the Survival Period, Assignee shall have asserted in writing a specific claim with respect to the
particular Surviving Assignor Representation, and within thirty (30) following the Survival Period, commenced a legal proceeding
against Assignor alleging that Assignor is in breach of such Surviving Representation and that Assignee has suffered actual damages
as a result thereof (a “Proceeding”). In no event shall Assignee be entitled to assert any consequential, special
or punitive damages, nor shall it be entitled to any award or payment based on such damages. If Assignee timely commences a Proceeding,
and a court of competent jurisdiction, pursuant to a final, non-appealable order in connection with such Proceeding, determines
that (i) the applicable Surviving Representation was breached as of the date of this Agreement or the Closing Date and (ii) Assignee
suffered actual damages, including, but not limited to, all legal fees, disbursements and expenses incurred by Assignee in prosecuting
or defending such claim (collectively, the “Damages”) by reason of such breach and (iii) the breach was Material
(as defined below), then Assignee shall be entitled to receive an amount equal to the Damages, but in no event in an amount greater
than the Ceiling (as defined below); provided, however, Assignee shall not be entitled to pursue any claims against Assignor for
damage (x) to Assignee that, in the aggregate, are less than the Floor (as defined below), or (y) resulting from any untrue, inaccurate
or incorrect representations if, at or prior to the Closing, Assignee shall have obtained actual knowledge that any such representation
made herein by Assignor was untrue, inaccurate or incorrect, without notifying Assignor, and Assignee shall have, nonetheless,
proceeded in consummating the Closing. As used herein, with respect to any claim or claims against Assignor for breach of any
Surviving Representation, “Floor” shall mean One Hundred Thousand Dollars ($100,000.00) in the aggregate, and
“Ceiling” shall mean Five Hundred Thousand Dollars ($500,000.00) in the aggregate. For the purposes of this
Section 14(e), “Material” shall mean any state of facts, taken alone or together with all other material
untruths or inaccuracies and all such covenants with which Assignor has not materially complied, the restoration of which to the
condition represented or warranted by Assignor under this Agreement, or the cost of compliance with which, would cost in excess
of Fifty Thousand Dollars ($50,000.00). The provisions of this Section 14(e) shall constitute the sole and exclusive remedy
after Closing for breaches of Assignor’s representations.

 

    	19

    	 

    

  

		15.	Mezzanine Loan.

 

Simultaneously with
the execution and delivery of this Agreement, the Mezzanine Loan is being assigned by Mezzanine Lender to 50VARNY001, LLC pursuant
to a Purchase and Sale Agreement in the form attached hereto as Exhibit 4.

 

		16.	Miscellaneous.

 

(a)         The validity,
construction and enforceability of this Agreement shall be governed by the laws of the State of New York without regard to the
principles of conflicts of law.

 

(b)         Each of the
parties hereto agrees and submits to the personal jurisdiction of the courts of the State of New York, both State and Federal,
and further agrees that the sole forum and venue for any action or proceeding under, in connection with or relating to, this Agreement
shall be the state or federal courts in New York, New York.

 

(c)         Without
limiting or modifying the provisions of Section 11 of this Agreement, this Assignment shall apply to and bind the distributees,
executors, administrators, successors and permitted assigns of Assignor and Assignee. If there are more than one Assignor and
Assignee the words “Assignor” and “Assignee” used in this Agreement includes them.

 

    	20

    	 

    

 

(d)        This Agreement
contains the entire agreement and understanding among and between the parties with respect to the subject matter hereof and supersedes
and replaces all prior understandings and agreements both written and oral.

 

(e)        This Agreement
shall not be amended, altered, modified or supplemented except in a writing duly executed by, or on behalf of, all the parties
hereto.

 

(f)         The defined
terms are for convenience only and all have no effect on the interpretation and enforcement of this Agreement

 

(g)        This Agreement
may be signed in counterparts, each of which shall be deemed an original, and all of which taken together shall constitute one
and the same document. Each counterpart is an original, but all counterparts, taken together, shall constitute one and the same
agreement. Delivery of an executed counterpart signature page of this Agreement by e-mail (pdf) or fax shall be as effective as
delivery of a manually executed counterpart of this Agreement.

 

(h)       This Agreement
shall not be binding on Assignor unless and until a fully executed Agreement is delivered (including without limitation via facsimile
or email pdf) to Assignee in accordance with this Agreement and the Deposit is received and accepted by Escrow Agent.

 

(i)        The Schedules
and Exhibits annexed hereto are hereby incorporated and made a part of this Agreement.

 

[THIS PAGE INTENTIONALLY ENDS HERE]

 

    	21

    	 

    

 

IN WITNESS WHEREOF, the parties
hereto have caused this Agreement to be executed by their respective officer thereunto duly authorized, as of the date first above
written.

 

	ASSIGNOR:	THOR 50 VARICK LLC
	 	 
	 	By: DSFT Holdings LLC, its sole member
	 	 
	 	By: 	/s/  Morris Missry
	 	 	Name: Morris Missry
	 	 	Title: Manager

 

	ASSIGNEE:	
        AMERICAN REALTY CAPITAL NEW YORK 

        RECOVERY REIT, INC.

	 	 
	 	By:	/s/ Michael Happel
	 	 	Name: Michael Happel
	 	 	Title: Executive VP &
    Chief Investment Officer

 

    	22

    	 

    

 

 

SCHEDULE 1

 

SELLER

 

		1.	GREENCAGE S.A., Société de Titrisation

		2.	KENSINGTON SQUARE HOLDING S.A., Société de Titrisation

		3.	SCLAREA FOUR S.A.

		4.	HAWKSFORD TRUSTEES JERSEY LTD., as Trustee of the Dog Trust

		5.	HUERTAS GROUP LTD.

		6.	AREPO FIDUCIARA S.R.L.

		7.	TIZIANI CAPITAL LIMITED

		8.	OMNIAFIN S.P.A.

		9.	SIMON FIDUCIARA S.P.A.

		10.	KRUIDO S.A.

		11.	UDOLL MANAGEMENT LIMITED

		12.	ALESSANDRO CAJRATI CRIVELLI

		13.	ANTONIO TAZARTES

		14.	MARIA BARTON

		15.	MARCO GOBBETTI

		16.	LUISA CAJRATI CRIVELLI

		17.	AMEDEO CLAVARINO

		18.	RICCARDO CAJRATI CRIVELLI

		19.	GIORGIO CAJRATI CRIVELLI

		20.	UBERTO CAJRATI CRIVELLI

		21.	PAOLO CARDANO

		22.	GIOVANNI DI VINCENZO

		23.	ANDREA A. ZAMBON

		24.	ROBERTO MANGIAVACCHI

		25.	ANTONIO BELLONI

		26.	ICS SECURITIES S.A R.L., Société de Titrisation

 

    	23

    	 

    

 

EXHIBIT 1 

 

PURCHASE CONTRACT

 

    	24

    	 

    

 

EXHIBIT 2

 

FORM OF ASSIGNMENT AND ASSUMPTION OF
SALE AND PURCHASE AGREEMENT

 

ASSIGNMENT OF SALE
AND PURCHASE AGREEMENT (this “Assignment”), dated this       day of July,
2013, by and between THOR 50 VARICK LLC, having an address at c/o Thor Equities, LLC, 25 West 39th Street, New
York, New York 10017 (“Assignor”), and AMERICAN REALTY CAPITAL NEW YORK RECOVERY REIT, INC., a Maryland
corporation, having an address at c/o American Realty Capital, 405 Park Avenue, 15th Floor, New York, New York 10022 (collectively,
“Assignee”).

 

RECITALS

 

WHEREAS,
Assignor has entered into that certain that certain Sale and Purchase Agreement, dated April 30, 2013, between Assignor, as
purchaser, and the parties set forth on Schedule 1 attached hereto, as seller (“Seller”), as
amended by First Amendment to Purchase and Sale Agreement, dated as of June 21, 2013, and by Second Amendment to Purchase and
Sale Agreement, dated as of June 25, 2013 (collectively, the “Purchase Contract”), for the purchase of
100% of the shares (the “Shares”) of Varick Investments S.àr.l., a private limited liability
company (société à responsabilité limitée) incorporated under the laws of the Grand Duchy
of Luxembourg, having its registered office at 19-21, boulevard du Prince Henri, L-1724 Luxembourg, Grand Duchy of
Luxembourg, having a share capital of EUR 12,500, registered with the Register of Commerce and Companies of Luxembourg under
number B 152.548; and

 

WHEREAS, Assignor
desires to transfer and assign its entire right, title and interest in and to the Purchase Contract, together with all agreements,
certificates and other instruments executed and/or entered into by Assignor in favor of Seller in connection with the Purchase
Contract (collectively, “Ancillary Instruments”), if any, and Assignee desires to acquire Assignor's interest
in the Purchase Contract and the Ancillary Instruments, if any, all in accordance with the terms and provisions of this Assignment.

 

NOW, THEREFORE,
in consideration of the foregoing recitals and the mutual agreements hereinafter set forth and good and valuable consideration,
the receipt and sufficiency of which are hereby acknowledged, and intending to be legally bound, the parties hereto do hereby agree
as follows:

 

1.             Assignment.
Assignor hereby assigns, conveys, grants, transfers and sets over unto Assignee all of Assignor's interest in the Purchase Contract
and all Ancillary Instruments, if any, and all rights, interests and obligations appertaining thereto.

 

2.            Assumption.
Assignee hereby accepts the assignment set forth in Section 1 above, of Assignor's interest in and to the Purchase Contract
and agrees to assume and be bound by and subject to the terms and provisions of the Purchase Contract and all Ancillary Instruments,
if any, including all obligations under each of them.

 

    	25

    	 

    

 

		3.	Miscellaneous.

 

(a)          This Assignment
shall inure to the benefit of and shall be binding upon the parties hereto and their respective directors, officers, heirs, legal
representatives, and successors and assigns.

 

(b)          All representations,
warranties, covenants and agreements of the parties hereto shall survive closing and the assignment herein set forth.

 

(c)          This Assignment,
together with that certain Assignment Agreement dated as of the date hereof, between Assignor and Assignee, constitutes the entire
understanding of the parties with respect to the subject matter and supersedes any other understanding of the parties with respect
to this subject matter. This Assignment may not be amended or modified, nor may any of its provisions waived, except by a writing
signed by the party against whom enforcement is sought.

 

[THIS PAGE INTENTIONALLY ENDS HERE]

 

IN WITNESS WHEREOF, the parties
have executed this Assignment as of the date first above written.

 

	ASSIGNOR:	THOR 50 VARICK LLC
	 	 
	 	By: DSFT Holdings LLC, its sole member
	 	 
	 	By:	 /s/ Morris Missry
	 	 	Name: Morris Missry
	 	 	Title: Manager

 

	ASSIGNEE:	AMERICAN REALTY CAPITAL NEW YORK
	 	RECOVERY REIT, INC.,
	a Maryland corporation	 
	 	By:	 /s/ Michael Happel
	 	 	Name: Michael Happel
	 	 	Title:   Executive Vice President
	 	 	            Chief Investment Officers

 

    	26

    	 

    

 

SCHEDULE 1

 

SELLER

 

		1.	GREENCAGE S.A., Société de Titrisation

		2.	KENSINGTON SQUARE HOLDING S.A., Société de Titrisation

		3.	SCLAREA FOUR S.A.

		4.	HAWKSFORD TRUSTEES JERSEY LTD., as Trustee of the Dog Trust

		5.	HUERTAS GROUP LTD.

		6.	AREPO FIDUCIARA S.R.L.

		7.	TIZIANI CAPITAL LIMITED

		8.	OMNIAFIN S.P.A.

		9.	SIMON FIDUCIARA S.P.A.

		10.	KRUDDO S.A.

		11.	UDOLL MANAGEMENT LIMITED

		12.	ALESSANDRO CAJRATI CRIVELLI

		13.	ANTONIO TAZARTES

		14.	MARIA BARTON

		15.	MARCO GOBBETTI

		16.	LUISA CAJRATI CRIVELLI

		17.	AMEDEO CLAVARINO

		18.	RICCARDO CAJRATI CRIVELLI

		19.	GIORGIO CAJRATI CRIVELLI

		20.	UBERTO CAJRATI CRIVELLI

		21.	PAOLO CARDANO

		22.	GIOVANNI DI VINCENZO

		23.	ANDREA A. ZAMBON

		24.	ROBERTO MANGIAVACCHI

		25.	ANTONIO BELLONI

		26.	ICS SECURITIES S.A R.L., Société de Titrisation

 

    	27

    	 

    

 

EXHIBIT 3

 

TITLE POLICY

 

    	28

    	 

    

 

Royal Abstract of New York LLC

 

	AMERICAN LAND TITLE ASSOCIATION OWNERS POLICY (6-17-2006)
	WITH NEW YORK COVERAGE ENDORSEMENT APPENDED (A.L. T.A.)

 

SCHEDULE A

 

	Policy No PROFORMA	 	 
	 	 	 
	Title Number	Effective Date	Amount of Insurance
	903426	7/3/2013	$83,750,000.00

 

		1.	Name of Insured: 50 Varick LLC

 

		2.	The estate or interest in the land which is covered
by this policy is: Beneficial Interest

 

		3.	Title to the estate or interest in the land is vested
by:

 

	 	As to Block 212 Lot 1301:
	 	 
	 	Which acquired title from Verizon New York Inc. by deed dated as of 3/31/10 and recorded 4/8/10 as CRFN 2010000117464, as corrected by a Correction Deed dated 11/8/12 and recorded 11/28/12 as CRFN 2012000466312.
	 	 
	 	As to Block 212 Lot 1307:
	 	 
	 	Which acquired title from Verizon New York Inc. by deed dated as of 11/8/12 and recorded 11/21/12 as CRFN 2012000458980.

 

		4.	The land referred to in this Policy is described herein
on Schedule A Description of Premises.

 

			For Information: Premises known as: 50 Varick Street Unit A & A2, New York,
                                                                             NY

 

 

 

	 	Authorized Signatory
	 	 
	SCHEDULE A	 
	A.L.T.A 2006 OWNERS POLICY	 

 

    	 

    	 

    

 

Royal Abstract of New York LLC

 

SCHEDULE A

DESCRIPTION OF PREMISES

 

Title No.         903426

Policy No.          PROFORMA

 

THE CONDOMINIUM
UNIT(S) (hereinafter referred to as the “Unit(s)”) in the building (hereinafter referred to as the “Building”)
known as 50 Varick Condominium and by the Street Number 34-50 Varick Street a/k/a 6 St. Johns Lane, County of New
York, State of New York, said Units being designated and described as Unit(s) A and A2 in a Declaration dated as of
2/16/10 made by Verizon New York Inc., pursuant to Article 9-B of the Real Property Law of the State of New York (hereinafter
referred to as the “Condominium Act”) establishing a Plan for condominium ownership of the Building and the Land (hereinafter
referred to as the “land”) upon which the building is situate (which land is more particularly described in Exhibit
A annexed hereto and by this reference made a part hereof), which Declaration was recorded in the New York County Register’s
Office on 3/12/10, as CRFN 2010000086079, and has been amended by First Amendment to Declaration dated 7/26/11 and
recorded 3/6/12 as CRFN 2012000086110 and by Second Amendment to Declaration dated 6/20/12 and recorded 10/24/12
as CRFN 2012000422214 (which Declaration and Amendments thereto are hereinafter collectively referred to as the “Declaration”).
These Units are also designated as Tax Lot 1301 and 1307 in Block 212 of the County of New York on the Tax Map of the Real
Property Assessment Department and on the Floor Plans of the Building, Certified by Jan L. Gross, Architect, on 3/9/10
and filed with the Real Property Assessment Department on 3/9/10 as Condominium Plan No. 2153 and also filed in the
New York County Register’s Office on 3/12/10 as Condominium Map No. CRFN 2010000086080, as amended on the Tax Map
of the Real Property Assessment Department and on the Floor Plans of the Building, Certified by Jan L. Gross, Architect,
on 2/22/12 and filed with the Real Property Assessment Department on 2/22/12 as Condominium Plan No. 2153-A and
also filed in the New York County Register’s Office on 3/6/12 as Condominium Map No. CRFN 2012000086111, as amended
on the Tax Map of the Real Property Assessment Department and on the Floor Plans of the Building, Certified by Jan L. Gross,
Architect, on 9/19/12 and filed with the Real Property Assessment Department on 9/19/12 as Condominium Plan
No. 2153-B and also filed in the New York County Register’s Office on 10/24/12 as Condominium Map No. CRFN 2012000422215.

 

TOGETHER with an undivided 50.804855%
(Unit A) and an undivided 1.048837% (Unit A2) interest in the Common Elements (as such term is defined in the Declaration).

 

TOGETHER with and SUBJECT
to the rights, obligations, easements, restrictions and other provisions set forth in the Declaration, Floor plans and the By-Laws
of 50 Varick Condominium, as the same may be amended from time to time (herein after referred to as the “By-Laws”),
all of which shall constitute covenants running with the Land and shall bind any person having at any time any interest or estate
in the Unit, as though recited and stipulated at length herein.

 

The land on which the building and
unit is located is situated in the County of New York and State of New York and is more fully described in the Declaration of Condominium
recorded in the New York County Register’s Office on 3/12/10, as CRFN 2010000086079, as amended.

 

Exhibit A

 

    	 

    	 

    

 

Royal Abstract of New York LLC

 

ALL THAT CERTAIN plot, piece or parcel of land, situate,
lying and being in the Borough of Manhattan, City, County and State of New York, bounded and described as follows:

 

BEGINNING at a point on the easterly side of Varick Street distant
one hundred and one feet, six inches northerly from the corner formed by the intersection of the easterly side of Varick Street
with the northerly side of Beach Street;

 

RUNNING THENCE easterly and parallel with the northerly side
of Beach Street, South 80 degrees 22 minutes 00 seconds East, one hundred forty feet and five eighths of an inch to the westerly
side of St. John’s Lane;

 

THENCE northerly along the westerly side of St. John’s
Lane, North 9 degrees 38 minutes 20 seconds East, two hundred thirty-nine feet nine inches (Deed; 239.48 feet actual);

 

THENCE westerly and parallel with the southerly side of Laight
Street North 80 degrees 22 minutes 00 seconds West one hundred and forty feet and seven eighths of an inch to the easterly side
of Varick Street;

 

AND THENCE southerly along the easterly side of Varick Street
South 8 degrees 38 minutes 00 seconds West, two hundred thirty-nine feet, five inches and three-quarter inches to the point or
place of BEGINNING.

 

For information only: Said premises are known as 50 Varick
Street Condominium 34-50 Varick Street a/k/a 6 St. Johns Lane, Units A and A2, New York, NY and designated as Block 212 Lots 1301
and 1307 as shown on the Tax Map of the City of New York, County of New York.

 

SCHEDULE A 

A.L.T.A 2006 OWNERS POLICY

 

    	 

    	 

    

 

Royal Abstract of New York LLC

 

SCHEDULE B

 

Policy No   PROFORMA

Title
No   903426

 

Showing defects, liens, encumbrances and other matters against
which the Company does not, by this Policy, insure:

 

		1.	Rights or claims of tenants, as tenants only.

 

		2.	Terms, Covenants, Conditions and Agreements contained in an unrecorded lease made by 50 Varick LLC, (Landlord) to Spring Studios
New York LLC, (Tenant) dated as of 12/19/11 as referenced in:

 

		A)	Subordination, Non-Disturbance and Attornment Agreement made between the Board of Managers of 50 Varick Street Condominium,
(Board) and Spring Studios New York LLC, (Tenant) dated as of 12/19/11 and recorded 6/19/12 as CRFN 2012000238097.

 

		3.	The policy will except the terms, conditions and easements set forth in the Declaration of Condominium and By-Laws dated as
of 2/16/10 and recorded 3/12/10 in the New York County Register's Office as CRFN 2010000086079. Policy insures that a valid condominium
has been created pursuant to Article 9B of the Real Property Law, as amended.

 

		B)	First Amendment to Declaration dated 7/26/11 and recorded 3/6/12 as CRFN 2012000086110.

 

		C)	Second Amendment to Declaration dated 6/20/12 and recorded 10/24/12 as CRFN 2012000422214.

 

		4.	The policy will except the restrictions and regulations as set forth in the By-Laws of the Condominium.

 

		5.	The policy will except any state of facts which an accurate survey and inspection of Unit would show, but policy insures that
any encroachments by insured Unit upon adjoining Units or upon common elements may remain undisturbed.

 

		6.	As to the land:

Survey made by U.S. Surveyor/Jack W. Shoemaker dated 1/20/2010,
last revised 1/21/2010, shows no encroachments, violations of restrictions or variations with lot lines except as follows:

 

		A)	Party wall straddles part of northerly and southerly lines. Policy excepts and insures the right to use and maintain same as
party walls.

 

		B)	Building walls vary with easterly and westerly lines.

 

Also shows the following projections
and/or encroachments over lot lines:

 

		A)	Concrete stoop into Varick Street (distance not specified).

 

		B)	Siamese connections into Varick Street (distance not specified).

 

		C)	Balcony up to 4.5 feet into St. John’s Lane.

 

Subject to any state of facts
since date of survey

 

    	 

    	 

    

 

Royal Abstract of New York LLC

 

SCHEDULE B

 

Policy No PROFORMA

Title No 903426

 

SCHEDULE B

A.L.T.A 2006 OWNERS POLICY

 

    	 

    	 

    

 

Royal Abstract of New York LLC

 

	STANDARD NEW YORK ENDORSEMENT
	(Owner's Policy)

 

Title No 903426

 

Attached to and made a part of Policy No. PROFORMA

 

		1.	The following is added as a Covered Risk:

 

“11. Any statutory lien arising under
Article 2 of the New York Lien Law for services, labor or materials furnished prior to the date hereof, and which has now gained
or which may hereafter gain priority over the estate or interest of the insured as shown in Schedule A of this policy.”

 

		2.	Exclusion Number 5 is deleted, and the following is substituted:

 

		5.	Any lien on the Title for real estate taxes, assessments,
water charges or sewer rents imposed by governmental authority and created or attaching between Date of Policy and the date of
recording of the deed or other instrument of transfer in the Public Records that vests Title as Shown in Schedule A.

 

This endorsement is issued as part of the
policy. Except as it expressly states, it does not (i) modify any of the terms and provisions of the policy, (ii) modify any prior
endorsements, (iii) extend the Date of Policy, or (iv) increase the Amount of Insurance. To the extent a provision of the policy
or a previous endorsement is inconsistent with an express provision of this endorsement, this endorsement controls. Otherwise,
this endorsement is subject to all of the terms and provisions of the policy and of any prior endorsements.

 

IN WITNESS WHEREOF, the Company has caused its corporate name
and seal to be hereunto affixed by its duly authorized officers

 

	DATED: 7/3/2013	Royal Abstract of New York LLC

 

	By	 	 
	 	Authorized Signatory	 

 

Standard New York Endorsement (11/1/2008)

For Use With ALTA Owner's Policy (6/17/2006)

Amended (7/1/2012)

 

    	 

    	 

    

 

Royal Abstract of New York LLC

 

CONDOMINIUM ENDORSEMENT

	(Owners
    Policy)

 

Title No. 903426

 

Attached to and made a part of Policy No. PROFORMA

 

The Company insures the insured against loss or damage sustained
by reason of:

 

		1.	The failure of the unit identified in Schedule A and its common elements to be part of a condominium
within the meaning of the condominium statutes of the State of New York.

 

		2.	The failure of the documents required by the condominium statutes to comply with the requirements
of the statutes to the extent that such failure affects the title to the unit and its common elements.

 

		3.	Present violations of any restrictive covenants which restrict the use of the unit and its common
elements and which are created by the condominium documents, except violations relating to environmental protection unless a notice
of a violation thereof has been recorded or filed in the Public Records and is not excepted in Schedule B. The restrictive covenants
do not contain any provisions which will cause a forfeiture or reversion of title.

 

		4.	The priority of any lien for charges and assessments at Date of Policy provided for in the condominium
statutes and condominium documents over the lien of any insured first mortgage identified in Schedule A.

 

		5.	The failure of the unit and its common elements to be entitled by law to be assessed for real property
taxes as a separate parcel.

 

		6.	Any obligation to remove any improvements which exist at Date of Policy because of any present
encroachments or because of any future unintentional encroachments of the common elements upon any unit or of any unit upon the
common elements or another unit.

 

		7.	The failure of title by reason of a right of first refusal to purchase the unit and its common
elements which was exercised or could have been exercised at Date of Policy.

 

This endorsement is made a part of the
policy and is subject to all of the terms and provisions thereof and of any prior endorsements thereto. Except to the extent expressly
stated, it neither modifies any of the terms and provisions of the policy and any prior endorsements, nor does it extend the effective
date of the policy and any prior endorsements, nor does it increase the amount of insurance.

 

IN WITNESS WHEREOF, the
Company has caused this Endorsement to be signed on the date below to be valid when countersigned by an authorized officer of
the Company, all in accordance with its By-Laws.

 

Dated: 7/3/2013

 

	Countersigned	Royal Abstract of New York LLC
	 	 
	 	 
	Authorized Signatory	 
	 
	TERSA ENDORSEMENT 4 (CONDOMINIUM) (5/1/07)

 

    	 

    	 

    

 

 

	Royal Abstract of New York LLC
	 
	WAIVER OF ARBITRATION ENDORSEMENT
	(Owner’s Policy)
	 
	Title No.
    903426

 

Attached to and made a part of Policy No. PROFORMA

 

The policy is amended by deleting therefrom:

 

		(A)	If this endorsement is attached to an ALTA Loan Policy:
Condition Section 13.

  

		(B)	If this endorsement is attached to an ALTA Owner’s
Policy: Condition Section 14.

  

		(C)	If this endorsement is attached to a TIRSA Owner’s
Extended Protection Policy: Condition 12.

 

This endorsement is made a part of the Policy and is subject
to all of the terms and provisions thereof and of any other endorsements thereto. Except to the extent expressly stated, it neither
modifies any of the terms and provisions of the Policy and any other endorsements, nor does it extend the effective date of the
Policy and any other endorsements, nor does it increase the face amount thereof.

 

IN WITNESS WHEREOF, the Company has caused
this Endorsement to be signed on the date below to be valid when countersigned by an authorized officer of the Company, all in
accordance with its By-Laws.

 

	Dated: 7/3/2013	 	 
	 	 	 
	Countersigned	 	Royal Abstract of New York LLC
	 	 	 
	 	 	 
	Authorized Signatory	 	 

 

TIRSA WAIVER OF ARBITRATION ENDORSEMENT [OWNER'S OR LOAN POLICY]
(11/01/08)

 

    	 

    	 

    

 

	Royal Abstract of New York LLC
	 
	NON IMPUTATION
    ENDORSEMENT
	(Owner’s Policy)
	Title No. 903426

 

Attached to and made a part of Policy No. PROFORMA

 

The Company insures 50VARNY001, LLC, a Delaware limited liability
company that, notwithstanding the provisions in paragraph number 3(a) and (b) of the Exclusions From Coverage, in the event of
loss or damage insured against under the terms of the Policy, the Company will not deny its liability thereunder to 50VARNY001,
LLC on the ground that the 50VARNY001, LLC had knowledge of any matter solely by reason of notice thereof imputed to it through
                            
(partner/shareholder/member) by operation of law. The insurance afforded hereby is limited to the insured named herein and does
not inure to the benefit of nor shall the Company be required to pay to or on behalf of any other individuals or other entities
involved in or connected with 50 Varick LLC.

 

Section 8(a) of the Conditions is amended to read as follows:

 

		(a)	The liability of the Company under the Policy shall not exceed the least of:

 

		(i)	              *%
                                                           of the actual monetary loss or damage sustained or incurred by 50 Varick
                                                           LLC (of which the insured is a partner/shareholder/member), or if the
                                                           interest of the insured in said partnership/corporation/limited liability
                                                           company is reduced below           
                                                           *%, such lesser proportion of the actual loss of said partnership/corporation/limited
                                                           liability company, or

 

		(ii)	              
                                                                 *% of the difference between the value of the insured estate
                                                                 or interest as insured and the value of the insured estate or
                                                                 interest subject to the defect, lien or encumbrance insured against
                                                                 by the Policy, or

 

		(iii)	The Amount of Insurance stated in Schedule A;

 

provided, however, that in no event shall the total
liability of the Company under the Policy, including this endorsement, exceed in the aggregate, the Amount of Policy and costs
which the Company is obligated to pay under the Conditions therein.

 

The Amount of Insurance under the Policy and this endorsement
shall be reduced by any payment which may be received by the insured under any other policy of title insurance affecting the premises
insured by the Policy.

 

This endorsement is made a part of the Policy and is subject
to all of the terms and provisions thereof and of any prior endorsements thereto. Except to the extent expressly stated, it neither
modifies any of the terms and provisions of the Policy and any prior endorsements, nor does it extend the Date of Policy and any
prior endorsements, nor does it increase the Amount of Insurance.

 

IN WITNESS WHEREOF, the Company has caused this Endorsement
to be signed on the date below to be valid when countersigned by an authorized officer of the Company, all in accordance with its
By-Laws.

 

	Dated: 7/3/2013	 
	 	 
	Countersigned	Royal Abstract of New York LLC

 

	 	 	 
	Authorized Signatory	 	 
	 	 	 
	TIRSA Non Imputation Endorsement (5/1/07)	 	 

 

    	 

    	 

    

 

EXHIBIT 4

 

MEZZANINE LOAN PURCHASE AND SALE AGREEMENT

 

    	29

    	 

    

 

PURCHASE AND SALE AGREEMENT

 

THIS PURCHASE AND SALE AGREEMENT (this
“Agreements”) is entered into by and between 50VARNY001, LLC, a Delaware limited liability company (the
“Purchaser”), and THOR 50 VARICK BRIDGE LENDER LLC, a Delaware limited liability company
(“Seller”), this 3rd day of July, 2013 (the “Closing Date”).

 

RECITALS:

 

WHEREAS, Seller has made a loan (the “Loan”)
to Varick Studios Inc., a Delaware corporation (“Borrower”), pursuant to that certain Secured Promissory Note
and Loan and Pledge Agreement, dated as of April 30, 2013 (the “Note”) given by Borrower to the order of Seller;
and

 

WHEREAS, the Note, together with all other
documents and instruments securing or otherwise evidencing the Loan as set forth on Exhibit A, are collectively referred
to as the “Loan Documents.”

 

NOW, THEREFORE, in consideration of the
payment of the Purchase Price (as defined on Schedule I hereof), the terms and conditions contained herein, and other good
and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereby covenant and agree
as follows:

 

1.           Purchase
of Loan. In consideration of (i) the payment of the Purchase Price (as defined on Schedule I hereof) by Purchaser to
Seller by wire transfer to Seller’s account on the Closing Date in immediately available funds, and (ii) Purchaser’s
satisfaction of all of the terms and conditions set forth herein, Seller shall sell, assign and transfer to Purchaser all of Seller's
right, title and interest in and to the Loan and the Loan Documents. In the event that Seller receives any payment, penalty, credit
or any other amount in connection with the Loan after the Closing Date, except for the receipt by Seller of the total Purchase
Price, Seller shall promptly remit to Purchaser the dollar amount of such payment, penalty, credit or other amount

 

		2.	Representations and Warranties.

 

2.1.         Seller
hereby represents and warrants to Purchaser as follows:

 

(a)           Attached
hereto as Exhibit A is a true, correct and complete listing of all of the Loan Documents as of the Closing Date. Except
as set forth in the Loan Documents listed on Exhibit A. no Loan Document has been modified, amended, altered, satisfied,
canceled, subordinated or rescinded. There exists no other agreement (written or oral) between Seller and Borrower with respect
to the Loan, other than the documents listed on Exhibit A.

 

(b)           Seller
is, and as of the Closing Date will be, the holder of the Loan and the Loan Documents, free and clear of any lien, pledge, security
interest, option or other charge or encumbrance (other than security interests in favor of Seller’s lenders which will be
released on or prior to the Closing Date), and is transferring the Loan to Purchaser free and clear of any lien, pledge, security
interest option or other charge or encumbrance, or any right of setoff or recoupment that Borrower may otherwise be entitled to.
Other than security interests in favor of its lenders which will be released on or prior to the Closing Date, Seller has not transferred,
and as of the Closing Date will not have transferred, any rights under or claims relating to the Loan or the Loan Documents to
any other party.

 

    	Purchase and Sale Agreement	 	 

    	 

    

 

(c)           Seller
and (to Seller’s actual knowledge with no duty of inquiry) Borrower are not in default of their respective obligations under
the Loan Documents.

 

(d)           As
of the Closing Date, the outstanding principal balance of the Loan is $5,000,000.00, the outstanding amount of accrued interest
is $72,222.22, and the Loan bears interest as described in the Loan Agreement.

 

(e)           Seller
(i) is a limited liability company duly organized, validly existing and in good standing under the laws of the jurisdiction of
its organization, (ii) has all requisite authority to own, lease and operate its properties and to carry on its business as now
being conducted and (iii) is duly qualified or licensed and Otherwise authorized to transact business in each jurisdiction in which
the properties owned, leased or operated by it or the nature of the business conducted by it makes such qualification or license
necessary.

 

(f)           Seller
has the requisite power and authority to execute and deliver this Agreement, to perform its obligations hereunder and to consummate
the transactions contemplated hereunder. The execution and delivery of this Agreement by Seller, the performance by it of its obligations
hereunder and the consummation by it of the transactions contemplated hereunder have been duly and validly authorized. This Agreement
has been duly and validly executed and delivered by it and constitutes the valid and binding agreement of it, enforceable against
it in accordance with its terms except (i) as limited by applicable bankruptcy, insolvency, reorganization, moratorium, and other
laws of general application affecting enforcement of creditors’ rights generally and (ii) as limited by laws relating to
the availability of specific performance, injunctive relief or other equitable remedies.

 

(g)           No
authorization, consent or approval of, or filing with, any court or any public body or authority and no consent or approval of
any third party or parties is necessary for the consummation by Seller of the transactions contemplated by this Agreement.

 

(h)           There
are no actions or proceedings against, or investigations of, the Seller pending, or, to the knowledge of the Seller, threatened,
before any court, arbitrator, administrative agency or other tribunal (i) asserting the invalidity of this Agreement or (ii) seeking
to prevent the sale of the Loan or the consummation of the transaction contemplated by this Agreement by the Seller.

 

2.2.        Purchaser
hereby confirms that it has received and reviewed the Loan Agreement and the other Loan Documents and has reviewed the Loan Documents
and such other documents and information deemed appropriate by it to make its own credit analysis and decision to purchase the
Loan Documents and the Loan. Purchaser further confirms that it will, independently and without reliance upon Seller, continue
to make its own credit decisions pursuant to and in accordance with its rights and remedies under the Loan Documents. From and
after the date hereof, Purchaser expressly assumes and undertakes to perform all of the obligations of Seller under the Loan Documents.

 

    	Purchase and Sale Agreement	-2-	 

    	 

    

 

2.3.        Purchaser
represents and warrants to Seller as follows :

 

(a)            Purchaser
(i) is a limited liability company duly organized, validly existing and in good standing under the laws of the jurisdiction of
its organization, (ii) has all requisite authority to own, lease and operate its properties and to carry on its business as now
being conducted and (iii) is duly qualified or licensed and otherwise authorized to transact business in each jurisdiction in which
the properties owned, leased or operated by it or the nature of the business conducted by it makes such qualification or license
necessary.

 

(b)           Purchaser
has the requisite power and authority to execute and deliver this Agreement, to perform its obligations hereunder and to consummate
the transactions contemplated hereunder. The execution and delivery of this Agreement by Purchaser, the performance by it of its
obligations hereunder and the consummation by it of the transactions contemplated hereunder have been duly and validly authorized.
This Agreement has been duly and validly executed and delivered by it and constitutes the valid and binding agreement of it, enforceable
against it in accordance with its terms except (i) as limited by applicable bankruptcy, insolvency, reorganization, moratorium,
and other laws of general application affecting enforcement of creditors’ rights generally and (ii) as limited by laws relating
to the availability of specific performance, injunctive relief or other equitable remedies.

 

(c)           Neither
the negotiation, execution or delivery of this Agreement by Purchaser nor the performance by Purchaser of its obligations hereunder
nor the consummation by such entity of the transactions contemplated hereunder has or will (i) constitute a breach or violation
under Purchaser’s constituent documents, (ii) constitute a breach, violation or default (or be an event which, with notice
or lapse of time or both, would constitute a default) under, or result in the termination of, or result in the creation of any
lien upon any of Purchaser’s properties or assets under, any material note, bond, mortgage, indenture, deed of trust, license,
lease, agreement or other instrument to which Purchaser is a party or by which any of its properties or assets are bound or (iii)
constitute a violation of any order, writ, injunction, decree, statute, rule or regulation of any court or governmental authority
applicable to it or any of its properties or assets, in each case except for such breaches, violations, defaults, terminations
or liens that could not reasonably be expected to have a material adverse effect on the ability of Purchaser to perform its obligations
hereunder.

 

(d)           No
authorization, consent or approval of, or filing with, any court or any public body or authority and no consent or approval of
any third party or parties is necessary for the consummation by Purchaser of the transactions contemplated by this Agreement.

 

(e)           There
are no actions or proceedings against, or investigations of, the Purchaser pending, or, to the knowledge of the Purchaser,
threatened, before any court, arbitrator, administrative agency or other tribunal (i) asserting the invalidity of this
Agreement or (ii) seeking to prevent the purchase of the
Loan or the consummation of the transaction contemplated by this Agreement by the Purchaser.

 

    	Purchase and Sale Agreement	-3-	 

    	 

    

 

2.4.        All
representations and warranties made by the parties in this Section shall survive the closing of this transaction and/or any termination
of this Agreement.

 

3.           Payment
and Receipt of the Purchase Price. On the Closing Date, Purchaser shall pay the Purchase Price to Seller by wire transfer
of immediately available funds as follows:

 

Citibank, NA

666 Fifth Avenue

New York, New York 10103

ABA#021 000 089

For Credit to Wachtel Masyr & Missry LLP

ACC#43311175 (Escrow Funds)

 

4.           Closing:
Execution of Documents of Transfer.

 

(a)           On
the Closing Date, Seller shall:

 

(i)           deliver
to Purchaser the original executed Loan Documents.

 

(ii)          deliver
to Purchaser the Note together with an allonge endorsement thereto in the form attached hereto as Schedule 4(a)(ii).

 

(iii)         execute
and deliver to Purchaser an Assignment of Loan Documents in the form attached hereto as Schedule 4(a)(iii).

 

(b)           On
and as of the Closing Date, and upon receipt by Seller of the Purchase Price, Purchaser shall be deemed authorized by Seller to
record such UCC Financing Statement Amendments (or similar instruments) assigning all of Seller’s rights in and to the UCC
Financing Statements related to the Loan.

 

5.           Loan
Assumption.   Seller hereby assigns all rights, responsibilities and obligations with respect to the Loan and the Loan Documents
to Purchaser, and Purchaser hereby expressly assumes all responsibilities and obligations with respect to the Loan and the Loan
Documents, arising on and after the Closing Date.

 

6.           Further
Assurances.  Purchaser and Seller hereby agree to execute and deliver, both at and after the Closing Date, such instruments
and take such further actions as another party hereto may, from time to time, reasonably request in order to effectuate the purposes
and to carry out the terms of this Agreement. Without limiting the generality of the foregoing, Seller agrees that following the
Closing Date, Seller shall execute any notice or instrument of transfer, assignment or conveyance reasonably requested by the
Purchaser (which request is accompanied by the form of instrument sufficient to satisfy Purchaser’s request) to more fully
confirm or effect the transfer of the Loan. Notwithstanding anything to the contrary in this Section 6, Purchaser shall be responsible
for, and shall pay or reimburse the Seller for, all costs and expenses related to any further assurances described in this Section
6, including but not limited to reasonable attorneys’ fees, recording costs and filing fees.

 

    	Purchase and Sale Agreement	-4-	 

    	 

    

 

7.           Notices.
  Any notice required or permitted by or in connection with this Agreement, without implying the obligation to provide any such
notice, shall be in writing at the appropriate addresses set forth below or to such other addresses as may be hereafter specified
by written notice by Seller or Purchaser. Any such notice shall be deemed to be effective one (1) business day after dispatch
if sent by overnight delivery, express mail or Federal Express or three (3) business days after mailing if sent by first
class mail with postage prepaid, or upon receipt if accomplished by hand delivery.

 

If to Purchaser:

 

50VARNY001, LLC

c/o American Realty Capital

405 Park Avenue,
15th Floor

New York, New York 10022

Attention: Jesse Galloway, Esq.

 

with a copy to:

 

Donovan LLP

152 Madison Avenue, 14th Floor

New York, New York
10016

Attention: Nicholas T. Donovan, Esq.

 

If to Seller:

 

Thor 50 Varick Bridge Lender LLC

c/o Thor Equities, LLC

25 West 39th Street

New York, New York 10018

Attention: Joseph J. Sitt and Cory Elbaum

 

with a copy to:

 

Wachtel Missry LLP

One Dag Hammarskjold Plaza

885 Second Avenue,
47th Floor

New York, New York 10017

Attention: Morris Missry, Esq.

 

8.           Choice
of Law. The laws of the State of New York shall govern the rights and obligations of the parties to this Agreement, and the
interpretation and construction and enforceability thereof, and any and all issues relating to the transactions contemplated herein.

 

9.            Final
Agreement. This Agreement (including the exhibits hereto) constitutes the final and entire agreement and understanding of
the parties with respect to the purchase and sale of the Loan, and any terms and conditions not set forth in this Agreement are
not a part of this Agreement. The understanding of the parties hereto may not be contradicted by evidence of prior, contemporaneous
or subsequent oral agreements of the parties. No variation, modification, or changes hereof shall be binding on either party hereto
unless set forth in a document executed by both parties.

 

    	Purchase and Sale Agreement	-5-	 

    	 

    

 

10.           Severability.
If any paragraph, section, sentence, clause or phrase contained in this Agreement shall become illegal, null or void or against
public policy, for any reason, or shall be held by any court of competent jurisdiction to be illegal, null or void or against
public policy, the remaining paragraphs, sections, sentences, clauses or phrases contained in this Agreement shall not be affected
thereby to the extent that the intent of the parties hereto can be carried out absent such provision.

 

11.           Counterparts.
This Agreement may be executed in separate counterparts, each of which shall be an enforceable document, but all of which together
shall constitute one and the same document.

 

12.           Benefit
of Agreement. This Agreement shall inure to the benefit of and be binding upon the parties hereto and their respective successors
and assigns.

 

13.           Time
of the Essence. Time is of the essence in the execution and performance of this Agreement.

 

14.           Rule
of Construction. The parties acknowledge that each party and its counsel have reviewed this Agreement and the parties hereby
agree that the normal rule of construction to the effect that any ambiguities are to be resolved against the drafting party shall
not be employed in the interpretation of this Agreement or any amendments or exhibits hereto.

 

15.           Fees
and Expenses. Each party shall bear the costs and expenses of its own attorneys in connection with the preparation of this
Agreement and the documents to be delivered in connection with the transaction contemplated hereunder.

 

[NO FURTHER TEXT ON THIS PAGE]

 

    	Purchase and Sale Agreement	-6-	 

    	 

    

 

IN WITNESS WHEREOF, the parties have executed
this Purchase and Sale Agreement as of the date first written above.

 

	 	SELLER:
	 	 
	 	THOR 50 VARICK BRIDGE LENDER LLC, a
	 	Delaware limited liability company
	 	 
	 	By: 	DSFT Holdings LLC, its sole member
	 	 	 	 
	 	 	By:	 
	 	 		Name: Morris Missry
	 	 	 	 Title: Manager
	 	 	 	 
	 	PURCHASER:
	 	 
	 	50VARNY001, LLC, a Delaware limited liability

	 	company
	 	 
	 	By:	 
	 	 	Name:
	 	 	Title:

 

Signature Page

 

    	Purchase and Sale Agreement	 	 

    	 

    

 

SCHEDULE I

 

Purchase Price

 

As used in the foregoing Agreement and in this Schedule I, the
following terms shall have the following meanings:

 

“Purchase Price” shall mean the total of (i) the
Principal and (ii) all accrued and unpaid Interest.

 

“Principal” shall mean the outstanding principal
balance of the Loan in the amount of $5,000,000.00.

 

“Interest” shall mean regular interest on the outstanding
principal balance of the Loan due and owing as of the Closing Date in the amount of $72,222.22.

 

    	Purchase and Sale Agreement	Exhibit A – Page 1	 

    	 

    

 

EXHIBIT A

 

Loan Documents

 

		1.	The Note;

 

		2.	That certain Security Agreement, made
                                                          as of April 30, 2013, by 50 Varick LLC (the “Fee Owner”)
                                                          to and in favor of Lender;

 

		3.	That certain Negative Pledge, made as of April 30, 2013, by Fee Owner to and in favor of Lender;

 

		4.	That certain Membership Certificate No. 000001 of Fee Owner, together with an executed Assignment of Interest in blank;

 

		5.	That certain UCCPlus Insurance Policy No. CTI001-14-1302216 issued by Chicago Title Insurance Company;

 

		6.	That certain Closing Statement with respect to the Loan, dated April 30, 2013, by and between Borrower and Lender; and

 

		7.	That certain Authorizing Resolution and Incumbency Certificate, certified to and attested by Hari K. Samaroo, as Secretary
of Borrower.

 

    	Purchase and Sale Agreement	Exhibit A – Page 2	 

    	 

    

 

Schedule 4(a)(ii)

Form of Allonge Endorsement

 

ALLONGE ENDORSEMENT TO PROMISSORY
NOTE

 

This allonge is attached to that certain
Secured Promissory Note and Loan and Pledge Agreement, dated as of April 30, 2013, made by Varick Studios Inc., a Delaware corporation,
to the order of the undersigned.

 

Pay to the order of 50VARNY001, LLC, a
Delaware limited liability company, without recourse.

 

	 	THOR 50 VARICK BRIDGE LENDER LLC, a
	 	 Delaware limited liability company
	 	 
	 	By:	DSFT Holdings LLC, its sole member
	 	 	 
	 	 	By:	 
	 	 	 	Name: Morris Missry 
	 	 	 	Title: Manager

 

    	Purchase and Sale Agreement	Schedule 4(a)(ii) – Page 1	 

    	 

    

 

Schedule 4(a)(iii) 

Form of Assignment
of Loan Documents

 

	This Instrument prepared by and to be returned to:	 	 	 
	 	 	 	 
	 	 	 	 
	 	 	 	 
	 	 	 	 
	 	 	 	 
	 	 	 	SPACE ABOVE THIS LINE FOR RECORDER’S USE

 

ASSIGNMENT OF LOAN DOCUMENTS

 

For and in consideration
of the sum of one dollar ($1.00) and other good and valuable consideration, the receipt of which is hereby acknowledged, THOR
50 VARICK BRIDGE LENDER LLC, a Delaware limited liability company (“Assignor”), whose mailing address is c/o
Thor Equities, LLC, 25 West 39th Street, New York, New York 10018, does hereby, through its duly appointed and authorized officers,
bargain, sell, give, grant, convey, transfer, set over and assign, WITHOUT RECOURSE, to 50VARNY001, LLC, a Delaware limited liability
company, whose mailing address is c/o American Realty Capital, 405 Park Avenue, 15th Floor, New York, New York 10022, its successors
and assigns, all of Assignor’s rights, title and interest in, to and under the following instruments and documents:

 

		1.	That certain Secured Promissory Note and Loan and Pledge Agreement,
                                                               dated as of April 30, 2013, given by Varick Studios Inc., a Delaware
                                                               corporation (“Borrower”) to the order of Assignor;

 

		2.	That certain Security Agreement, made as of April 30, 2013,
                                                               by 50 Varick LLC (the “Fee Owner”) to and in
                                                               favor of Lender;

 

		3.	That certain Negative Pledge, made as of April 30, 2013, by Fee Owner to and in favor of Lender;

 

		4.	That certain Membership Certificate No. 000001 of Fee Owner, together with an executed Assignment of Interest in blank;

 

		5.	That certain UCCPlus Insurance Policy No. CTI001-14-1302216 issued by Chicago Title Insurance Company;

 

		6.	That certain Closing Statement with respect to the Loan, dated April 30, 2013, by and between Borrower and Lender; and

 

		7.	That certain Authorizing Resolution and Incumbency Certificate, certified to and attested by Hari K. Samaroo, as Secretary
of Borrower.

 

    	Purchase and Sale Agreement	Schedule 4(a)(iii) – Page 1	 

    	 

    

 

[NO FURTHER TEXT ON THIS PAGE]

 

    	Purchase and Sale Agreement	Schedule 4(a)(iii) – Page 2	 

    	 

    

 

IN WITNESS WHEREOF, said Assignor has caused
this Assignment to be executed on this 3rd day of July, 2013.

 

	 	ASSIGNOR:
	 	 
	 	THOR 50 VARICK BRIDGE LENDER LLC, a
	 	Delaware limited liability company
	 	 
	 	By: 	DSFT Holdings LLC, its sole member
	 	 
	 		By: 	 
	 	 	 	Name: Morris Missry
	 	 	 	Title: Manager

 

	STATE OF NEW YORK	)
	 	) SS:
	COUNTY OF NEW YORK	)

 

On the 3rd day of July, in the year 2013,
before me, the undersigned, personally appeared Morris Missry, personally known to me or proved to me on the basis of satisfactory
evidence to be the individual(s) whose name(s) is(are) subscribed to the within instrument and acknowledged to me that he/she/they
executed the same in his/her/their capacity, and that by his/her/their signature(s) on the instrument, the individual(s) or the
person(s) upon behalf of which the individual(s) acted, executed the instrument.

 

 

	 	NOTARY PUBLIC
		[Seal]

 

    	Purchase and Sale Agreement	Schedule 4(a)(iii) – Page 3

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