Document:

DEPOSIT ACCOUNT CONTROL AGREEMENT

 

PARTIES

 

HERCULES TECHNOLOGY GROWTH CAPITAL, INC. (''Creditor'')

INSPIREMD, INC. (“Customer'')

BANK LEUMI USA (''Bank'')

___________________________________________________________
(''Banking Office'')

 

BACKGROUND

 

Customer has granted
Creditor a security interest in a deposit account maintained by Bank for Customer and in all funds heretofore or hereafter deposited
into that account, including any interest earned thereon. The Parties are entering into this agreement to perfect Creditor’s
security interest in that account.

 

AGREEMENT

 

		1.	The Account

 

Bank represents and
warrants to Creditor that Bank maintains deposit account no. 22-655409-18 (such account, together with all cash, funds, items,
instruments and other amounts now or hereafter deposited into or held therein, and all interest thereon, the ''Account'') for Customer
at the Banking Office and that, as of the date hereof, Bank does not know of any claim to or interest in the Account or any other
control agreement with respect to the Account, except for claims and interests of the parties referred to in this agreement.

 

		2.	Control of Account by Creditor

 

a. Bank shall execute transactions in the Account at the direction of Customer unless and until Bank receives from Creditor
a written Notice of Exclusive Control in substantially the form of Exhibit A hereto (a “Notice of Exclusive Control”);
provided, that in the event that Bank at any time receives conflicting instructions from Customer and Creditor, Bank shall only
execute the instructions originated by Creditor. Upon receipt of a Notice of Exclusive Control, Bank will immediately (i) comply
only with instructions and other directions as to the withdrawal or disposition of any funds credited to the Account and as to
any other matters relating to the Account (“Orders”), originated by Creditor, without Customer's further consent, (ii)
cease complying with Orders originated by Customer or any other person/entity, and (iii) neither accept nor comply with any instructions
from Customer withdrawing or transferring any funds or other property from the Account nor deliver any property in the Account
to Customer nor pay any free credit balance or other amount owing from Bank to Customer with respect to the Account without the
specific prior written consent of Creditor.

 

b.Bank may rely on a Notice of Exclusive
Control purportedly signed by Creditor and shall have no duty to investigate or make any determination as to the validity, genuineness
or propriety thereof, or the facts giving rise thereto. This Agreement does not create or impose any obligation or duty upon Bank
other than those expressly set forth herein.

 

		3.	Priority of Creditor’s Security Interest; Rights
Reserved by the Bank

 

a.
Bank agrees that all of its present and future rights, interests, liens and security interests with respect to the Account
(including, without limitation, rights of setoff, recoupment, banker’s lien, chargeback or otherwise) are subordinate to
Creditor's present and future rights, interests, liens and security interests with respect to the Account; provided, however,
that Creditor agrees that nothing herein subordinates or waives, and that Bank expressly reserves, all of its present and future
rights (whether described as rights of setoff, banker's lien, chargeback or otherwise, and whether available to Bank under the
law or under any other agreement between Bank and Customer concerning the Account, or otherwise) with respect to: (i) items deposited
to the Account and returned unpaid, whether for insufficient funds or for any other reason, and without regard to the timeliness
of return of any such items; (ii) checks paid, or other payment orders executed in good faith against uncollected funds in the
Account provided Bank does not have reasonable cause to doubt the collectibility of such uncollected funds; (iii) claims of breach
of the transfer or presentment warranties arising under the applicable Uniform Commercial Code made against Bank in connection
with items deposited to the Account; and (iv) Bank's usual and
customary charges for services rendered in connection with the Account. 

 

    	 

    	 

    

 

b.Except as otherwise required
by law, Bank will not agree with any third party that Bank will comply with Orders originated by such third party.

 

		4.	Statements; Notices of Adverse Claims

 

Bank may disclose to
Creditor such information concerning the Account as Creditor may from time to time reasonably request; provided, however,
that Bank shall have no obligation to disclose to Creditor any information which Bank does not ordinarily make available to its
depositors. Bank will use reasonable efforts promptly to notify Creditor and Customer if any other person claims that it has a
property interest in the Account.

 

		5.	Bank's Responsibility

 

a. Except for permitting a withdrawal or other action in violation of section 2, above, Bank will not be liable to Creditor
for complying with Orders from Customer that are received by Bank before Bank receives and has had a reasonable opportunity to
act (but not more than two business days) on a contrary Order from Creditor.

 

b. Bank will not be liable to Customer for complying with Orders originated by Creditor, even if Customer notifies Bank that
Creditor is not legally entitled to issue Orders, unless Bank takes the action after it is served with an injunction, restraining
order or other legal process enjoining it from doing so, issued by a court of competent jurisdiction, and has had a reasonable
opportunity to act on the injunction, restraining order or other legal process.

 

c. This agreement does not create any obligation of Bank except for those expressly set forth in this agreement. In particular,
Bank need not investigate whether Creditor is entitled under Creditor's agreements with Customer to give Orders. Bank may rely
on notices and communications it believes are given by the appropriate party.

 

		6.	Indemnity

 

Customer will indemnify
Bank, its officers, directors, employees, and agents against claims, liabilities, and expenses arising out of this agreement (including
reasonable attorneys' fees and disbursements), except to the extent the claims, liabilities, or expenses are caused by Bank's gross
negligence or willful misconduct. Creditor will indemnify Bank, its officers, directors, employees, and agents against claims,
liabilities, and expenses arising from any Notice of Exclusive Control (including reasonable attorneys' fees and disbursements),
except to the extent the claims, liabilities, or expenses are caused by Bank's gross negligence or willful misconduct.

 

 

		7.	Termination; Survival

 

a.    
Creditor may terminate this agreement by notice to the Banking Office and Customer. Bank may terminate this agreement on
30 day's notice to Creditor and Customer.

 

b.    
If Creditor notifies Bank that Creditor's security interest in the Account has terminated, this agreement will immediately
terminate.

 

c. Sections 5, "Bank's
Responsibility," and 6, "Indemnity," will survive termination of this agreement.

 

		8.	Governing Law

 

    	 

    	 

    

 

This agreement and the
Account will be governed by the laws of the State of New York. Bank may not change the law governing the Account without Creditor's
express written agreement, which consent shall not be unreasonably withheld.

 

		9.	Entire Agreement

 

This agreement is the
entire agreement and supersedes any prior agreements and contemporaneous oral agreements of the parties concerning its subject
matter.

 

		10.	Amendments

 

No amendment of, or
waiver of a right under, this agreement will be binding unless it is in writing and signed by the party to be charged.

 

		11.	Severability

 

To the extent a provision
of this agreement is unenforceable, this agreement will be construed as if the unenforceable provision were omitted.

 

		12.	Other Agreements

 

For so long as this
agreement remains in effect, transactions involving the Account shall be subject, except to the extent inconsistent herewith, to
the provisions of such deposit account agreements, disclosures, and fee schedules as are in effect from time to time for accounts
like the Account.

 

		13.	Successors and Assigns

 

The provisions of this
agreement shall be binding upon and inure to the benefit of Bank, Creditor and Customer and their respective successors and assigns.

 

		14.	Notices

 

A notice or other communication
to a party under this agreement will be in writing and will be sent to the party's address set forth below or to such other address
as the party may notify the other parties, and will be effective on receipt.

 

		15.	Counterparts

 

This agreement may be
executed in counterparts, each of which shall be an original, and all of which shall constitute but one and the same instrument.

 

The foregoing is hereby
acknowledged and agreed to, effective as of the last of the dates set forth below.

 

[signature page follows]

 

    	 

    	 

    

 

INSPIREMD, INC.

(Customer)

 

	By:  	/s/ Craig Shore	 

 

Name: Craig Shore

 

Title: Chief Financial Officer

 

Address:

 

InspireMD, Inc.

Attention: Craig Shore

800 Boylston Street, Suite 1600

Boston, Massachusetts 02199

 

Facsimile: _____________________

 

Telephone: 857-453-6553

 

Date: October 23, 2013

 

 

HERCULES TECHNOLOGY GROWTH CAPITAL, INC.

(Creditor)

 

	By:  	/s/ K. Nicholas Martitsch	 

 

Name: K. Nicholas Martitsch

 

Title: Associate General Counsel

 

Address:

 

Hercules Technology Growth Capital, Inc.

Legal Department

Attention: Chief Legal Officer and Mr. Bryan Jadot

400 Hamilton Avenue, Suite 310

Palo Alto, California 94301

 

Facsimile: 650-473-9194

 

Telephone: 650-289-3060

 

Date: October 23, 2013

 

    	 

    	 

    

 

 

BANK LEUMI USA

(Bank)

 

	By:  	/s/
    Avram Keusch 	 	/s/
    Howard Kramer	 

 

Name: Avram Keusch and Howard Kramer

 

Title: First Vice President and Vice President

 

	Address:	579 Fifth Avenue, 5th Floor 
	(Banking office)
	 	New York, NY 10017 
	 	 
	Facsimile:	212-626-1072
	(Banking office)
	 	 
	Telephone:  	212-626-1056 and 212-626-1055 
	(Banking office)

 

 

Date: October 23, 2013

 

    	 

    	 

    

 

Exhibit A

 

Notice of Exclusive Control

 

 

 

 

Dear:

 

 

Reference is made to
the Deposit Account Control Agreement dated as of ___________ , 20__ (the “Control Agreement”) by and among you, the
undersigned, and ____________________ (“Customer”). Terms defined in the Control Agreement and used without other definition
herein shall have the respective meanings herein assigned to such terms in the Control Agreement.

 

Pursuant to Section
2 of the Control Agreement, you are hereby directed, from and after the date hereof, to execute only instructions originated by
Creditor, and not to accept for execution any further entitlement orders originated by Customer.

 

	 	Very truly yours,
	 	 	 
	 	 
	 	 	 
	 	By:	 
	 	 	 
	 	Title:OPTION
AGREEMENT

 

Option Agreement (the
“Option Agreement” or “Agreement”) made this __21st __ day of October, 2013, by and between
Regent 33rd Realty Corp., with an address c/o Zane and Rudofsky, 601 West 26th Street, Suite 1315, New York,
New York 10001 ("Seller"), and RCI Holdings Inc., with an address RCI Holdings Inc., 10959
Cutten Road, Houston, Texas 77066 ("Purchaser").

 

WITNESSETH
:

 

Whereas,
Seller is the owner and holder of a fee simple estate in and to that certain real property, with building and improvements
thereon, located at 50 West 33rd Street, New York, New York (the “Premises”);

 

Whereas,
Purchaser and Seller had previously entered into an Agreement of Sale dated December 6, 2012 (the “December PSA”) for
the sale by Seller and purchase by Purchaser of the Premises,

 

Whereas,
the December PSA was amended and modified by that Amendment to Purchase and Sale Agreement dated May 21, 2013 (the May 21, 2013
Amendment to Purchase and Sale Agreement, together with the December PSA is hereinafter referred to as the “Original PSA”);

 

    	 

    	 

    

 

Whereas,
simultaneously with the execution and delivery of this Agreement, Purchaser and Seller will enter into the Cancellation and Termination
of the Purchase and Sale Agreement (the “Termination of Original PSA”);

 

Whereas,
simultaneously with the execution and delivery of this Agreement, Seller shall transfer approximately 39,006 zoning and development
rights relating to the Premises (the “Air Rights”) to Purchaser, or its assignee, pursuant to the terms that certain
Air Rights Purchase and Sale Agreement (the “Air Rights PSA”) and shall Purchaser shall cause Seller to receive the
sum of Thirteen Million and 00/100 ($13,000,000.00) Dollars (the “Air Rights Payment”) [For the purposes of this Option
Agreement the term “Air Rights” shall include all rights transferred pursuant to, or as a result of the Air Rights
PSA.];

 

Whereas,
provided that Seller receives the entire Air Rights Payment, without set-off or deduction, then, in such event, Seller is willing
to grant to Purchaser the exclusive right and option to purchase Seller’s interest in the Premises;

 

Whereas,
Purchaser desires to acquire the exclusive right and option to purchase Seller’s interest in the Premises.

 

Now
Therefore, in consideration of the mutual promises contained herein and for other good and valuable consideration,
the receipt and sufficiency of which is hereby acknowledged, the parties hereto agree as follows:

 

    	2

    	 

    

 

1.          Grant
of Option.         Seller hereby grants to Purchaser the exclusive right and
option to purchase Seller’s interest in the Premises (the “Purchase Option”) for a total purchase price of Ten
Million and 00/100 ($10,000,000.00) Dollars on the terms and conditions set forth in the Purchase and Sale Agreement attached
hereto and made a part hereof as Exhibit A (the “Purchase Agreement”). This Purchase Option shall continue
in full force and effect from the date hereof until midnight on the 30th day of September, 2018 (the “Option
Expiration Date”).

 

2.          Air
Rights Transfer.         Purchaser acknowledges and understands that its right
to purchase the Premises shall not include the Air Rights being sold and transferred pursuant to the Air Rights PSA, and that
such sale and transfer will limit Purchaser’s ability to develop the Premises. Purchaser further acknowledges that the Ten
Million ($10,000,000) Dollars purchase price for the Premises takes into consideration the sale and transfer of the Air Rights
and receipt by Seller of the Air Rights Payment.

 

3.          Exercise
of Option.         In
order to exercise the Purchase Option on or before the Option Expiration Date, Purchaser shall deliver to Seller written notice
of its election of the Purchase Option (the “Option Notice”).
Upon receipt of the Option Notice, Seller shall be bound by the terms of the Purchase Agreement and the parties shall close in
accordance with the Purchase Agreement.

 

    	3

    	 

    

 

4.          Termination.

 

(i)          At
any time prior to the exercise of the Purchase Option, Purchaser may, for any reason, terminate this Option Agreement by sending
written notice to Seller (the “Termination Notice”). Upon receipt by Seller of the Termination Notice, this Option
Agreement and the Purchase Agreement shall be deemed terminated and shall be of no further force and effect. Furthermore, in the
event that Purchaser fails to deliver the Option Notice on or before the Option Expiration Date, this Option Agreement shall be
deemed terminated and the Purchase Agreement shall be of no further force and effect.

 

(ii)         In
the event (a) Purchaser or Seller terminates this Option Agreement (b) Purchaser fails to serve the Option Notice in a timely manner,
and/or (c) Purchaser fails to closer under the terms of the Purchase Agrement, then, in any such event, Purchaser, which previously
waived and relinquished its right to one-half of the Deposit under the Original PSA, shall be deemed to have forever waived and
relinquished its right to the balance of the Deposit under the Original PSA.

 

5.          Casualty.
In the event the Premises are damaged by fire, flood, storm, vandalism or in any manner during the period between date hereof
and the Option Expiration Date and provided and on condition that Seller’s insurance carrier fully complies with its contractual
obligations to compensate Seller for the damages it incurred by reason of such fire, flood, storm or vandalism, then, in such event,
Seller shall be obligated to restore the Premises to a condition that is reasonably similar in all material respects to the condition
that existed prior to such event and the Purchase Option shall not be affected in any manner.

 

    	4

    	 

    

 

6.          Memorandum.         Simultaneously
herewith, Purchaser and Seller have executed and delivered to Purchaser’s attorney, (i) a memorandum of this Agreement,
a copy of which is attached hereto as Exhibit B (the "Option Memorandum") and (ii) (x) a completed and duly executed
New York City Real Premises Tax Return (the "Option RPT"), and (y) a completed and duly executed New York State Combined
Real Estate Transfer Tax Return and Credit Line Mortgage Certificate (the "Option TP-584"), sufficient in form to permit
recording of the Option Memorandum. The Option Memorandum, the Option RPT, the Option TP-584 and any other such documents (collectively,
the "Memorandum Documents") shall be recorded or otherwise disposed of in accordance with the terms of this Agreement.
Purchaser shall be responsible for all costs incurred in connection with the recording or filing of the Memorandum Documents.
Notwithstanding the foregoing, each party shall bear its own legal costs in connection with the recording of the Option Memorandum.
In the event Purchaser (i) terminates this Option Agreement, and/or (ii) fails to serve the Option Notice in a timely nammer,
and/or (iii) fails and/or refuses to timely close under the terms and conditions of the Purchase Agreement, then, in any such
event, Purchaser shall execute such documents as may be reasonably required by Seller to cancel, of record, the Memorandum Documents.

 

    	5

    	 

    

 

7.          Notices.         All
notices, demands, requests or other communications (collectively, “Notices”) required to be given or which
may be given hereunder shall unless otherwise provided herein be in writing and shall be sent by (i) national overnight delivery
service, or (ii) facsimile transmission (provided that the original shall be simultaneously delivered by national overnight delivery
service or personal delivery), or (iii) personal delivery, addressed as follows:

 

(a)          If
to Seller:

 

Mr. Jack Elo

Elo Organization

42 West 48th Street

New York, New York 10036

Facsimile: (212) 997-5539

 

with copies to:

 

Zane and Rudofsky

The Starrett Lehigh Building

601 West 26th Street, Suite 1315

New York, New York 10001

Attention: Eric S. Horowitz, Esq.

Facsimile: (212) 541-5555

 

(b)          If
to Purchaser:

RCI Holdings Inc.

10959 Cutten Road, Houston, Texas
77066

Facsimile: (281) 397-6730

with a copy to:

 

Meister Seelig & Fein LLP

 

    	6

    	 

    

 

Two Grand Central Tower

140 East 45th Street, 19th Floor

New York, New York 10017

Attention: Matthew E. Kasindorf,
Esq.

Facsimile: (646) 539-3658

 

Any Notice so sent
by overnight delivery service or personal delivery shall be deemed given on the date of receipt or refusal as indicated on the
return receipt, or the receipt of the national overnight delivery service or personal delivery service. Any Notice sent by facsimile
transmission shall be deemed given when received as confirmed by the telecopier electronic transmission report. A Notice may be
given either by a party or by such party’s attorney. Seller or Purchaser may designate, by not less than five (5) business
days’ notice given to the others in accordance with the terms of this Section, additional or substituted parties to whom
Notices should be sent hereunder.

 

8.          Representations
and Warranties.

 

		a)	Seller represents and warrants to Purchaser as of the date hereof that:

 

i.            Seller
has all requisite power and authority to enter into this Option Agreement and to perform its obligations thereunder.

 

ii.         Seller
has duly executed and delivered the Option Agreement and it constitutes a valid and binding obligation of Seller, enforceable in
accordance with its terms, subject to applicable bankruptcy, insolvency, reorganization, fraudulent transfer, moratorium and similar
laws effecting creditors rights generally.

 

    	7

    	 

    

 

iii.         The
execution and delivery of the Option Agreement has been duly and validly authorized by Seller and no other entity proceedings on
the part of Seller are necessary to authorize the Option Agreement, or to consummate the transactions contemplated thereby.

 

iv.         Seller
is not a party to any management agreements, maintenance, union, employment or service contracts, pertaining to the Premises which
will be binding upon Purchaser from and after the Purchase Closing Date.

 

v.           There
are no leases, subleases, occupancy agreements, possession agreements or licenses of whatever type or kind on or affecting the
Premises, except for the Triple Net Lease, dated February 3, 2003, by and between Seller, as Landlord, and Peregrine Enterprises
Inc., as Tenant, as amended. Provided and on condition that the Triple Net Lease is still in full force and effect and the tenant
thereunder is not in default under the terms and conditions of same, beyond any applicable cure period, then, in such event, Seller
shall not enter into any new leases, subleases, occupancy agreements, possession agreements or licenses of whatever type or kind
on or affecting the Premises while the Purchase Option is in full force and effect.

 

    	8

    	 

    

 

vi.         To
Seller's knowledge, there is no action, suit or proceeding pending or threatened against or affecting Seller or the Premises before
any court or any governmental, administrative, regulatory, adjudicatory, or arbitrative body or agency of any kind regarding the
ownership, use or possession of the Premises or which would adversely affect performance by Seller of its obligations pursuant
to and as contemplated by other terms and provisions of the Option Agreement.

 

		b)	Purchaser represents and warrants to Seller that as of the date hereof that:

 

i.            Purchaser
has all requisite power and authority to enter into this Option Agreement and to perform its obligations thereunder.

 

ii.         Purchaser
has duly executed and delivered this Option Agreement. The Option Agreement constitutes a valid and binding obligation of Purchaser,
enforceable in accordance with its terms, subject to applicable bankruptcy, insolvency, reorganization, fraudulent transfer, moratorium
and similar laws effecting creditors rights generally.

 

iii.         The
execution and delivery of the Option Agreement has been duly and validly authorized by Purchaser and no other corporate or partnership
proceedings on the part of Purchaser are necessary to authorize the Option Agreement or to consummate the transactions contemplated
thereby.

 

iv.         No
consent of any person, entity or other party and no notice to, authorization, consent or approval of, filing with, or other action
by, any governmental or regulatory agency, body or authority is necessary for the execution, delivery or performance of the Option
Agreement or the consummation of the transactions contemplated thereby.

 

    	9

    	 

    

 

v.           The
execution, delivery and performance by Purchaser of the Option Agreement and the consummation of the transactions contemplated
thereby (A) will not violate any provision of any applicable laws, statutes, codes, treaties, permits, decrees, ordinances, orders,
rules, regulations and requirements of any governmental or regulatory agency, body or authority, (B) will not violate any provision
of the formation or entity documents of Purchaser and (C) will not violate any provision of, or constitute (with or without due
notice or lapse of time or both) a breach of or default under, or result in the creation or imposition of any lien on any asset
of Purchaser pursuant to the provisions of, any mortgage, deed of trust, indenture, contract, agreement or other undertaking to
which Purchaser is a party or which is binding upon Purchaser or upon any of its assets or properties.

 

The representations
and warranties contained in this Section shall survive the execution and delivery of this Agreement.

 

9.          Covenants
of Seller.         During the period from the date hereof until the termination
of the Purchase Option in accordance with this Agreement, Seller shall not (i) encumber or transfer any development rights appurtenant
to the Premises (except for the sale and transfer of the Air Rights pursuant to the Air Rights PSA) and/or (ii) amend or modify
(other than non-material amendments or modifications, or amendments and/or modifications which do not survive the Closing) or
renew any contract that would be binding on Purchaser.

 

    	10

    	 

    

 

10.         Broker.         Purchaser
and Seller each represent to each other that it has not dealt with any broker, finder or like agent in connection with this transaction.
Purchaser and Seller hereby indemnify and holds the other party harmless from and against any and all claims for any commission,
fee or other compensation by any person or entity who shall claim to have dealt with either party in connection with this transaction
and for any and all costs incurred by the other party in connection with any such claims including, without limitation, reasonable
attorneys' fees and disbursements. The provisions of this Section shall survive the exercise of the Purchase Option or the expiration
or termination of this Option Agreement.

 

11.         Assignment.         Purchaser
may not, and shall not assign this Option Agreement without the prior written consent of Seller in each instance, which may be
withheld for any or no reason whatsoever. Any attempted assignment without the prior written consent of Seller shall be null and
void. Notwithstanding the foregoing, Purchaser shall have the right to assign this Option Agreement to an entity controlled by
Eric S. Langan (or a successor thereto) without the consent of the Seller. In such event, the assignee shall be deemed the purchaser
under the Purchase Agreement.

 

12.         Miscellaneous.

 

a)   All oral or
written statements, representations, promises, and agreements of Seller and Purchaser are merged into and superseded by this Option
Agreement, which alone fully and completely expresses their understanding as to the option rights granted hereunder.

 

    	11

    	 

    

 

b)   This Option
Agreement may not be altered, amended, changed, waived, or modified in any respect or particular unless the same shall be in writing
signed by Seller and Purchaser. No waiver by any party of any breach hereunder shall be deemed a waiver of any other or subsequent
breach.

 

c)   This Option
Agreement shall be governed by the laws of New York. If any provisions hereof shall be unenforceable or invalid, such unenforceability
or invalidity shall not affect the remaining provisions of this Agreement.

 

d)   The parties
hereto agree to submit to personal jurisdiction in the State of New York in any action or proceeding arising out of this Agreement
and, in furtherance of such agreement, the parties hereby agree and consent that without limiting other methods of obtaining jurisdiction,
personal jurisdiction over the parties in any such action or proceeding may be obtained within or without the jurisdiction of any
court located in New York and that any process or notice of motion or other application to any such court in connection with any
such action or proceeding may be served upon the parties by registered or certified mail to or by personal service at the last
known address of the parties, whether such address be within or without the jurisdiction of any such court.

 

e)   Seller hereby
irrevocably designates its counsel, Zane and Rudofsky, as its agent for service of process in connection with any matter relating
to this Agreement. Purchaser hereby irrevocably designates its counsel, Meister, Seelig & Fein as its agent for service of
process in connection with any matter relating to this Agreement.

 

    	12

    	 

    

 

f)    This
Agreement shall be binding upon and inure to the benefit of the parties hereto and their permitted assigns.

 

13.         Litigation.         In
the event of any litigation between the parties hereto to enforce any of the provisions of this Option Agreement or any right
of either party hereto, the substantially non-prevailing party to such litigation shall pay to the substantially prevailing party
all costs and expenses, including reasonable attorneys’ fees and disbursements, incurred herein by the substantially prevailing
party in and as part of the judgment rendered in such litigation. The provisions of this Section 13 shall survive the termination
hereof, the execution of the Purchase and Sale Agreement, the termination of the Purchase Agreement and/or the closing under the
Purchase Agreement. 

 

IN
WITNESS WHEREOF, Seller and Purchaser have caused this Option Agreement to be executed the
day and year first above written.

 

	 	REGENT 33rd REALTY CORP.
	 	 
	 	By: 	/s/ Jack Elo
	 	 	Jack Elo, President

 

    	13

    	 

    

 

	 	RCI HOLDINGS INC.
	 	 
	 	By:	/s/ Eric S. Langan
	 	 	Eric S. Langan, President

 

    	14

    	 

    

     

EXHIBIT A

  

PURCHASE AND SALE AGREEMENT

 

Between

 

REGENT 33rd REALTY CORP.,

 

SELLER,

 

and

 

RCI HOLDINGS INC.

 

PURCHASER.

 

Premises:

50 West 33rd
Street,

New York, New York

 

(As more particularly
described

in Schedule A hereto)

 

Dated: ________________,
201_

 

    	 

    	 

    

 

TABLE
OF CONTENTS

 

	 	 	Page
	 	 	 
	1.	DEFINITIONS.	2
	2.	PURCHASE AND SALE.	3
	3.	PURCHASE PRICE, initial payment AND DEPOSIT.	3
	4.	STATUS OF TITLE.	6
	5.	TITLE INSURANCE; LIENS.	6
	6.	APPORTIONMENTS.	9
	7.	COVENANTS OF SELLER.	10
	8.	CONDITIONS TO CLOSING.	11
	9.	CONDITION OF THE PROPERTY; REPRESENTATIONS.	13
	10.	DAMAGE AND DESTRUCTION.	16
	11.	BROKERS AND ADVISORS.	17
	12.	TAX REDUCTION PROCEEDINGS.	18
	13.	TRANSFER TAXES AND TRANSACTION COSTS.	18
	14.	DELIVERIES TO BE MADE ON THE CLOSING DATE.	19
	15.	CLOSING DATE.	21
	16.	NOTICES.	21
	17.	DEFAULT BY PURCHASER OR SELLER.	23
	18.	HAZARDOUS MATERIALS.	24
	19.	ENTIRE AGREEMENT.	25
	20.	AMENDMENTS.	25
	21.	WAIVER.	25
	22.	SECTION HEADINGS.	25
	23.	GOVERNING LAW.	26
	24.	PARTIES; ASSIGNMENT AND RECORDING.	26
	25.	FURTHER ASSURANCES.	26
	26.	THIRD PARTY BENEFICIARY.	26
	27.	JURISDICTION AND SERVICE OF PROCESS.	26
	28.	WAIVER OF TRIAL BY JURY.	27
	29.	MISCELLANEOUS.	27

 

    	- i -

    	 

    

 

 

TABLE
OF CONTENTS

(continued)

 

 

	 	 	Page
	 	 	 
	30.	ATTORNEYS’ FEES.	27
	31.	LIKE-KIND EXCHANGE.	28
	32.	PURCHASER’S TITLE COMPANY	28

 

 

	Schedules
	 	 
	A	Schedule of Property 
	B	List of Personalty
	 	 
	Exhibits
	 	 
	1	Escrow Agent's Wire Instructions
	2	Bargain and Sale Deed Without Covenants 
	3	Form of Bill of Sale
	4	FIRPTA Affidavit
	5	Assignment and Assumption Agreement

 

    	- ii -

    	 

    

 

THIS PURCHASE AND
SALE AGREEMENT (the “Agreement”) made as of the ____ day of _________, ____, between REGENT 33rd
REALTY CORP. (f/k/a Regent Photo Video Electronic, Inc.), having an address c/o Zane and Rudofsky, 601 West 26th
Street, Suite 1315, New York, New York 10001 (“Seller”) and RCI Holdings Inc, having an address at 10959 Cutten
Road, Houston, Texas 77066 (“Purchaser”).

 

WITNESSETH:

 

WHEREAS, Seller
is owner and holder of a fee simple estate in and to that certain piece and parcel of land more particularly described in Schedule
A annexed hereto and known as 50 West 33rd Street, New York, New York (the “Land”), together
with all improvements located thereon, and all fixtures, machinery equipment and other personal property attached thereto or used
in connection therewith, if any, except to the extent owned by Tenant (as hereinafter defined) (collectively, the “Building”);
the Building together with the Land and all right, title and interest of Seller, if any, in and to all leases, easements, licenses,
rights of way, privileges, appurtenances, and other rights pertaining to the Land being sometimes referred to hereinafter as the
“Premises”);

 

WHEREAS, Seller
desires to sell the Property (as hereinafter defined) to Purchaser, and Purchaser desires to purchase the Property from Seller,
upon and subject to the terms and conditions of this Agreement;

 

WHEREAS, Purchaser
and Seller have entered into an Option Agreement dated October 21, 2013 (the “Option Agreement”) whereby Purchaser
was given the exclusive right to purchase the Premises on the terms and conditions set forth in this Agreement;

 

WHEREAS, Purchaser’s
affiliate, is presently the tenant of the entire Building pursuant to that certain Triple Net Lease dated February 3, 2003, by
and between Seller, as landlord, and Peregrine Enterprises Inc. (the “Tenant”), as tenant, as amended, modified and/or
assigned (the “Triple Net Lease”) pursuant to which Tenant is the tenant of the entire Building and responsible for
all maintenance, costs and expenses associated with the Building, including, but not limited to real estate taxes, water charges,
and the removal of violations;

 

WHEREAS,
as a result of the Triple Net Lease and the occupancy of the entire Building by Tenant, Purchaser is fully familiar with all aspects
of the Property; and

 

WHEREAS, except
as otherwise specifically set forth in this Agreement, Purchaser has agreed to purchase the Premises, “as is”, subject
to all violations, liens, easements and all other matters set forth herein.

 

NOW, THEREFORE,
in exchange for the mutual covenants and agreements herein contained and other good and valuable consideration, the sufficiency
and receipt of which is hereby acknowledged, the parties hereto covenant and agree as follows:

 

1.          DEFINITIONS:

 

	Adjourned Closing Date	Section 5(c)(v)
	Adjusted Purchase Price	Section 3(c)

 

    	 

    	 

    

  

	Agreement	Preamble
	Apportionment Date	Section 6(a)
	Bankruptcy Law	Section 8(a)(ix)
	Broker	Section 11(a)
	Building	Recitals
	Business Day	Section 29(c)
	Closing	Section 15(a)
	Closing Date	Section 15(a)
	Commitment	Section 5(c)(i)
	Deposit	Section 3(a)
	ERISA	Section 9(f)(ii)
	Escrow Agent	Section 3(a)
	Exculpated Parties	Section 9(a)(i)
	Land	Recitals
	Limitation Period	Section 9(e)
	Must Cure Item	Section 5(c)(iii)
	New Closing Notice	Section 5(f)
	Non-Objectionable Encumbrances	Section 5(c)(v)
	Notices	Section 16(a)
	Option Agreement	Recitals
	 	 
	Permitted Encumbrances	Section 5(a)
	Personalty	Section 2(a)
	Premises	Recitals
	Property	Section 2(a)
	Property Taxes	Section 6(b)
	Purchase Price	Section 3
	Purchaser	Preamble
	Representation(s)	Section 9(c)
	Scheduled Closing Date	Section 15 
	Seller	Preamble
	Seller’s Actual Knowledge	Section 9(d)
	Surveys	Section 5(c)(ii)
	Taking	Section 8(a)(vii)
	Tenant	Recitals
	Title Cure Period	Section 5(c)(v)
	Title Objection	Section 5(c)(iii)
	Transfer Taxes	Section 13(a)
	Transfer Tax Laws	Section 13(a)
	United States Person	Section 9(c)(viii)
	Utilities	Section 6(c)
	Violations	Section 5(i)

 

    	- 2 -

    	 

    

 

2.          PURCHASE
AND SALE:

 

(a)          Seller
shall sell, assign and convey to Purchaser, and Purchaser shall purchase and assume from Seller, subject to the terms and conditions
of this Agreement; (i) the Premises; (ii) all of Seller’s right, title and interest in, to and to the fixtures, furnishings,
furniture, equipment, machinery, inventory, appliances and other tangible and intangible personal property, if any (iii) all of
Seller’s right, title and interest in, to and under any warranties, permits, licenses, certificates of occupancy, and approvals
relating to the Premises, if any (iv) all of Seller’s right, title and interest in, to and under any service, maintenance,
supply and other contracts relating to the operation, maintenance and construction of the Premises, if any (v) all of Seller’s
right, title and interest in, to and under any warranties, if any, issued by any manufacturers and contractors in connection with
construction or installation of equipment included as part of the Premises, to the extent applicable, available and transferable
(vi) all of Seller’s right, title and interest in, to and under any easements and rights of way appurtenances, strips, gores
and other rights, if any, pertaining to the Premises (vii) all of Seller’s right title and interest in, and to zoning and
development rights, if any, and other general intangibles, if any, relating to the Premises and (viii) the fixtures, equipment
and machinery, if any, and appliances and other personal property, if any, owned by Seller, located at the Premises and listed
on Schedule B hereto (the “Personalty”). The items described in clauses (i), (ii), (iii), (iv), (v),
(vi) (vii) and (viii) above shall be referred to herein collectively as the “Property”.

 

(b)          The
parties hereto acknowledge and agree that the value of the Personalty, if any, is de minimis and that no part of
the Purchase Price is allocable thereto. Although it is not anticipated that any sales tax shall be due and payable, Purchaser
agrees that if a sales tax is due, Purchaser will pay any and all State of New York and City of New York sales and/or compensating
use taxes imposed upon or due in connection with the transactions contemplated hereunder under any applicable laws of State of
New York or City of New York, and shall defend and indemnify Seller from and against any and all claims and expenses (including,
but not limited to, reasonable attorney’s fees) associated therewith or relating thereto. The parties further agree that
Seller shall not be obligated to remove any property from the Premises and may leave all personalty at the Premises that Seller
deems fit. All such personalty shall be deemed abandoned by the Seller as of the Closing Date.

 

(c)          Reference
is made to the Option Agreement. Terms not otherwise defined herein shall have their respective meanings set forth in the Option
Agreement.

 

3.          PURCHASE
PRICE, INITIAL PAYMENT AND DEPOSIT:

 

The purchase price to
be paid by Purchaser to Seller for the Property (the “Purchase Price”) is Ten Million ($10,000,000) Dollars,
subject to adjustment credits, if any, as provided in this Agreement, payable as set forth below:

 

(a)          Purchaser
has previously delivered a deposit to Zane and Rudofksy, as escrow agent (“Escrow Agent”) the aggregate sum of Seven
Hundred Fifty Thousand ($750,000.00) (the “Deposit”), of which $375,000.00 (the “Released Deposit”) was
previously released to the Seller and of which $375,000.00 remains in escrow (the “Remaining Deposit”). Purchaser
hereby confirms that it, forever, unconditionally and irrevocably waives and relinquishes any and all right, title and interest
in and/or to the Released Deposit. However, Purchaser shall still be entitled to a credit for the
full amount of the Deposit at the Closing.

 

    	- 3 -

    	 

    

 

(b)          (i)          the
Remaining Deposit shall remain in an interest bearing money market account at Signature Bank, or such other bank as the Escrow
Agent may designate, it being agreed that the Escrow Agent shall not be liable for (y) any loss of such investment (unless due
to Escrow Agent’s gross negligence or willful misconduct) or (z) any failure to attain a favorable rate of return on such
investment. Escrow Agent shall deliver the Deposit to Seller or to Purchaser, as the case may be, under the following conditions:

 

(1)         The
Remaining Deposit shall be delivered to Seller at the Closing as a credit against the Purchase Price (with the Released Deposit)
upon receipt by Escrow Agent of a statement executed by Seller and Purchaser authorizing the Remaining Deposit to be released;
or

 

(2)         The
Remaining Deposit shall be delivered to Purchaser or Seller as directed by joint written instructions of Seller and Purchaser,
or as ordered by a court of competent jurisdiction or other dispute resolution forum.

 

(ii)         If
litigation is commenced between Seller and Purchaser, Escrow Agent shall have the right, but not the obligation, to deposit the
Remaining Deposit with the clerk of the court in which said litigation is pending and Escrow Agent shall also have the right, but
not the obligation, to take such other and/or additional affirmative steps as Escrow Agent may elect, in Escrow Agent’s sole
discretion, in order to terminate Escrow Agent’s duties hereunder, including but not limited to commencing an action for
interpleader, the costs and Escrow Agent’s legal fees in connection therewith to be borne by whichever of Seller or Purchaser
is the losing party in such interpleader action. Escrow Agent may act as attorney for the Seller in any litigation arising out
of or relating to this Purchase and Sale Agreement, the Premises and/or the Triple Net Lease.

 

(iii)        Escrow
Agent may rely and act upon any instrument or other writing reasonably believed by Escrow Agent to be genuine and purporting to
be signed and presented by any person or persons purporting to have authority to act on behalf of Seller or Purchaser, as the case
may be, and shall not be liable in connection with the performance of any duties imposed upon Escrow Agent by the provisions of
this Agreement, except for Escrow Agent’s own gross negligence, willful misconduct or default. Escrow Agent shall have no
duties or responsibilities except those set forth herein. Escrow Agent shall not be bound by any modification, cancellation or
rescission of this Agreement unless the same is in writing and signed by Purchaser and Seller, and, if Escrow Agent’s duties
hereunder are affected, unless Escrow Agent shall have given prior written consent thereto. Escrow Agent shall be reimbursed by
Seller and Purchaser for any expenses (including reasonable legal fees and disbursements of outside counsel), including all of
Escrow Agent’s fees and expenses with respect to any interpleader action or other action, legal fees or expenses incurred
in connection with this Agreement, and such liability shall be joint and several; provided, however, that, as between Purchaser
and Seller, the prevailing party in any dispute over the Remaining Deposit shall be entitled to reimbursement by the losing party
of any such expenses paid to Escrow Agent. In the event that Escrow Agent shall be uncertain as to Escrow Agent’s duties
or rights hereunder, or shall receive instructions from Purchaser or Seller that, in Escrow Agent’s opinion, are inconsistent
with each other or in conflict with any of the provisions hereof, Escrow Agent shall be entitled to hold the Remaining Deposit
and may decline to take any other action. After delivery of the Remaining Deposit in accordance herewith and except as provided
in this subparagraph (iii), Escrow Agent shall have no further liability or obligation of any kind whatsoever.

 

    	- 4 -

    	 

    

 

(iv)        Escrow
Agent shall have the right at any time to resign upon ten (10) business days’ prior notice to Seller and Purchaser. Seller
and Purchaser shall jointly select a successor Escrow Agent and shall notify Escrow Agent of the name and address of such successor
Escrow Agent within ten (10) business days after receipt of notice of Escrow Agent of its intent to resign. If Escrow Agent has
not received notice of the name and address of such successor Escrow Agent within such period, Escrow Agent shall have the right
to select on behalf of Seller and Purchaser a bank or trust company or national title insurance company with offices in New York,
New York to act as successor Escrow Agent hereunder. At any time after the ten (10) business day period, Escrow Agent shall have
the right to deliver the Remaining Deposit, and the interest accrued thereon, to any successor Escrow Agent selected hereunder,
provided such successor Escrow Agent shall execute and deliver to Seller and Purchaser an assumption agreement whereby it assumes
all of Escrow Agent’s obligations hereunder. Upon the delivery of all such amounts and such assumption agreement, the successor
Escrow Agent shall become the Escrow Agent for all purposes hereunder and shall have all of the rights and obligations of the Escrow
Agent hereunder, and the resigning Escrow Agent shall have no further responsibilities or obligations hereunder.

 

(v)         The
interest earned on the Remaining Deposit shall be treated as part of and delivered to the party entitled to receive the Deposit
as provided in this Agreement; provided, however, that if the Seller receives the interest such interest shall not be treated as
a credit against the Purchase Price. The party receiving such interest shall pay any income taxes thereon. Seller’s and Purchaser’s
taxpayer identification numbers are as follows:

 

Seller: ______________;
Purchaser: _____-______________.

 

(c)          At
the Closing, Seller shall be entitled to retain the Remaining Deposit and Purchaser
shall deliver the balance of the Purchase Price (i.e., the Purchase Price
less the Deposit) to Seller, as adjusted pursuant to Section 6 and any provision
hereof entitling Purchaser to credit(s) against the Purchase Price (such balance as adjusted, the “Adjusted
Purchase Price”).

 

(d)          At
Closing, Purchaser shall pay the Adjusted Purchase Price to Seller, in accordance with Seller’s written instructions by (a)
bank checks payable to Seller or Seller’s designee drawn on a nationally recognized bank which is a member of the New York
Clearing House Association and/or (b) by wire transfers in immediately available federal funds to bank accounts designated, in
writing, by Seller.

 

    	- 5 -

    	 

    

 

(e)          Seller
may use any or all of the Purchase Price to satisfy existing mortgages, if any, on the Premises. Purchaser hereby requests, and
Seller hereby agrees to use its best efforts to obtain an assignment of any existing mortgage on the Premises to Purchaser’s
lender. All costs, fees and expenses, including but not limited to any legal fees charged by any mortgagee(s), in providing such
assignment shall be borne solely by Purchaser.

 

The provisions of this
Section 3 shall survive the Closing or termination of this Agreement.

 

4.          STATUS
OF TITLE:

 

Subject
to the terms and provisions of this Agreement, Seller’s fee simple title to the Property shall be sold, assigned and conveyed
by Seller to Purchaser, and Purchaser shall accept and assume same, subject only to all Permitted Encumbrances (as hereinafter
defined). Except as expressly set forth herein, Seller shall not be obligated to incur any expense or liability to cure,
remedy or remove any actual or alleged defect in, or cloud on title and/or to otherwise render title marketable and/or insurable.

 

5.          TITLE
INSURANCE; LIENS:

 

(a)          All
usual and customary Schedule B “exceptions”, violations and/or notices in the Commitment (as hereinafter defined) and
any and all other existing (but not disclosed) and/or new violations issued through and including the Closing Date shall be deemed
to be “Permitted Encumbrances,” as to which Purchaser agrees to accept title subject to, without any reduction
in, or credit to the Purchase Price.

 

(b)          The
following shall also be Permitted Encumbrances:

 

(i)          The
possible absence of a Certificate of Occupancy for the Building;

 

(ii)         Variations
between or among: (x) the Certificate of Occupancy and/or (y) other records of The City of New York and/or (z) the actual structures,
actual room counts, or actual uses or occupancies provided same do not render title to the Property uninsurable at regular rates
without the payment of additional premiums;

 

(iii)        Variations
between and new or existing surveys and/or the descriptions contained in any prior Deeds and/or the Commitment (as hereinafter
defined), on the one hand, and any Tax Maps or other municipal records, on the other hand provided same do not render title to
the Property uninsurable at regular rates without the payment of additional premiums;

 

(iv)        Any
and all other violations of, conditions imposed by, and/or non-compliance with: any federal, New York State or New York City statute,
rule, regulation, or code, relating to zoning or use and occupancy applicable to any Building, including, but not limited to, all
violations relating the elevators and boilers;

 

(v)         All
present and future building, zoning, subdivision, landmark, historic, wetlands, fire and safety restrictions, regulations, laws,
ordinances, resolutions and orders of any State, municipal or other governmental authorities having jurisdiction over the Premises
or the use or improvement thereof;

 

    	- 6 -

    	 

    

 

(vi)        Any
and all recorded covenants, restrictions, easements and agreements provided same do not render title to the Property uninsurable
at regular rates without the payment of additional premiums. The violation of any covenant, restriction, easement and/or agreement
shall not be deemed to be an objection to title provided that Purchaser’s title company shall agree to insure, at no additional
cost, either (x) against collection out of, or enforcement against the Property; or (y) that the Building may remain in its present
location as long as same shall stand;

 

(vii)       Any
state of facts which a current survey of the Premises would show;

 

(viii)      The
rights of public utility companies, if any, to install, maintain and operate lines, poles, pipes, distribution boxes, and other
equipment and installations over, under or along the street next to the Premises or the part of the Premises next to the street,
or running to improvements on the Premises;

 

(ix)         Any
estate taxes, inheritance taxes and other taxes owed by any party in the chain of title, provided Seller agrees to deposit with
Purchaser’s title company a sum sufficient to pay such taxes or to release the Premises from the lien thereof and/or Purchaser’s
title company agrees to omit same at no additional cost to Purchaser; and

 

(x)          All
encroachments and projections of walls, foundations, trim, fences or other improvements, installations or appurtenances onto the
Premises or from the Premises onto adjoining property; variations between actual and/or record lines and any tax map; and consents
for the erection and maintenance of any structures on, under or above any streets or roads adjoining the Premises.

 

(xi)         Zoning
Lot Development and Easement Agreement, Declaration of Zoning Lot Restrictions, Easement for Light and Air, all between Seller
and 38-46 West 33 Street LLC and executed on or about October 21, 2013.

 

(c)          (i)          Purchaser,
at its sole cost and expense, will promptly order a new title commitment (the “Commitment”) for an owner’s
policy of title insurance with respect to Purchaser’s acquisition of the Premises.

 

(ii) Purchaser, at
its sole cost and expense, will promptly order an ALTA Survey (the “Survey”).

 

(iii)        Purchaser
shall direct the title company to deliver a copy of the Commitment and any update to the Commitment to Seller and Seller’s
attorneys simultaneously with its delivery of the same to Purchaser. Purchaser shall notify Seller in writing by no later than
ten (10) business days prior to Closing, of any objections to any matters shown in the Commitment (the “Title Objection”)
that Purchaser believes Seller is obligated to cure. Seller have no obligation to remove, or otherwise cure a Title Objection which
has been recorded or otherwise placed or suffered by the affirmative act of the Tenant under the Triple Net Lease. Seller shall
cause (i) any existing mortgages on the Property to be paid off in full at or prior to Closing or otherwise omitted as an exception
at no additional cost to Purchaser, unless the same are being assigned to Purchaser’s lender and (ii) all mechanics’
liens and all judgment liens affecting the Property, which were voluntarily caused or created by Seller, to be removed, without
any cap on the amount Seller is required to expend therefor. The items Seller is required to remove and/or pay off pursuant to
this Section 5(c)(iii) are referred to collectively herein as the “Must Cure Item.”

 

    	- 7 -

    	 

    

 

(iv)        Intentionally
omitted.

 

(v) Purchaser shall
not be entitled to object to, and shall be deemed to have approved, any and all non-monetary claims, notices, encumbrances or other
title exceptions or objections (and the same shall not constitute Title Objections, but shall instead be deemed to be Permitted
Encumbrances) only if (i) Purchaser’s title company is willing to insure at no additional cost to Purchaser, or (ii) which
will be extinguished upon the transfer of the Property at no additional cost to Purchaser, or (iii) any such claim, notice, encumbrance
or other title exception or objection is the result of, or arises out of the use and occupancy of the Property by Tenant or the
affirmative act of Tenant or its agents or representatives (collectively, the “Non-Objectionable Encumbrances”).
Notwithstanding anything to the contrary contained herein, if Seller is unable to eliminate a proper Title Objection by the Closing
Date, unless the same are waived by Purchaser without any abatement in the Purchase Price, Seller may, upon at least two (2) business
days’ prior notice to Purchaser (except with respect to matters first disclosed during such two (2) business day period,
as to which matters notice may be given at any time through and including the Scheduled Closing Date) adjourn the Closing Date
(such date to which Seller adjourns the Closing Date is the “Adjourned Closing Date”), for a period not to exceed
thirty (30) days (the “Title Cure Period”), in order to attempt to eliminate such exceptions.

 

(d)          If
Seller is unable to eliminate any proper Title Objection within the Title Cure Period after using commercially reasonable efforts
then, unless the same is waived by Purchaser, Seller may cancel this Agreement and, upon the return of the Remaining Deposit
along with a reimbursement for Purchaser’s usual and customary title and survey costs, Seller shall have no further
obligation and/or liability to Purchaser.

 

(e)          Intentionally
omitted.

 

(f)          If
Seller has adjourned the Closing Date in order to cure a Must Cure Item in accordance with the provisions of this Section 5, Seller
shall, upon the satisfactory cure thereof, promptly reschedule the Closing Date, upon at least five (5) business days’ prior
notice to Purchaser to a date that is mutually convenient for the parties (the “New Closing Notice”); it being
agreed, however, that if any Title Objection arise between the date the New Closing Notice is given and the rescheduled Closing
Date, Seller may again adjourn the Closing for a reasonable period or periods, in order to attempt to cause such exceptions to
be eliminated; provided, however, that Seller shall not be entitled to adjourn the new Scheduled Closing Date pursuant to this
Section 5 for a period or periods in excess of forty-five (45) days in the aggregate, past the originally scheduled Closing Date.

 

    	- 8 -

    	 

    

 

(g)          If
the Commitment discloses judgments, bankruptcies or other returns against other persons having names the same as or similar to
that of Seller, Seller shall deliver to the title company affidavits showing that such judgments, bankruptcies or other returns
are not against Seller in order to induce the title company to omit exceptions with respect to such judgments, bankruptcies or
other returns or to insure over.

 

(h)          Intentionally
omitted.

 

(i)          Notwithstanding
anything to the contrary contained herein, Purchaser expressly and unconditionally agrees to purchase the Property subject to (x)
any and all notes, notices or evidence of any violations of law, municipal ordinances, codes, orders, designations, or requirements
whatsoever noted in or issued by any federal, state, city, municipal or other governmental department, agency or bureau or any
other governmental authority having jurisdiction over the Property and whether or not such note, notice or evidence of any violations
of law, municipal ordinances, codes, orders, designations, or requirements imposed or imposes a fine, penalty or other monetary
assessment against the Property or the owner thereof, and (y) any condition or state of repair or disrepair, whether or not noted,
existing as of the transfer of title, which has, may or would result in a violation, notice, lien, fine or the like being issued
or placed on the Premises except if same is the responsibility of Seller under the Triple Net Lease or caused by the affirmative
act of the Seller (“Violations”). All such Violations and underlying conditions shall be deemed to be Permitted
Encumbrances.

 

(j)          Seller
shall not be obligated to remedy or repair the underlying condition that gave or gives rise to any of the Permitted Exceptions.

 

(k)          Intentionally
omitted.

 

6.          APPORTIONMENTS:

 

(a)          Provided
and on condition that Tenant is current on the rental obligations under the Triple Net Lease, the rent under such Triple Net Lease
shall be apportioned between Seller and Purchaser as of the day immediately preceding the Closing Date (the “Apportionment
Date”) based upon the actual number of days in the month during which the Closing occurs. In the event Tenant is indebted
to Seller for any obligations under the Triple Net Lease as of the Closing Date, then, in such event, all such money due and owing
shall be added to the Purchase Price and shall be paid by Purchaser to Seller at Closing.

 

(b)          Purchaser
warrants and represents that all real estate taxes, water charges, sewer rents and any and all other governmental taxes, charges
or assessments levied or assessed against the Property (collectively, the “Property Taxes”) which are due and
owing on the Closing Date shall be paid, in full, prior to or at the time of the Closing, and Purchaser shall defend, indemnify
and hold Seller harmless from and against any and all claims arising out of the failure to fully and timely pay all such Property
Taxes (including, but not limited to any and all penalties and interest that may be due and owing as a result of the failure to
timely pay any such Property Taxes).

 

(c)          Charges
for all electricity, steam, gas and other utility services (collectively, “Utilities”) shall continue to be
billed in the manner previously undertaken up to the Apportionment Date and from and after the Apportionment Date, all Utilities
shall be billed to Purchaser’s, or its affiliate, account. If for any reason such change over in billing does not occur as
of the Closing Date, Purchaser shall be responsible for all charges associated with all Utilities on and after the Closing Date.

 

    	- 9 -

    	 

    

 

(d)          Purchaser
shall receive a credit for the amount of the security deposit under the Triple Net Lease.

 

(e)          The
provisions of this Section 6 shall survive the Closing for a period of twelve (12) months.

 

7.          COVENANTS
OF SELLER:

 

(a)          During
the period from the date hereof until the Closing Date, Seller shall:

 

(i)          be
permitted to enter into any agreements with respect to all or any portion of the Property provided that (i) such agreements expire
by their terms on or prior to the Closing Date or, in the case of contracts, shall be terminated by Seller as of the Closing Date
and (ii) Seller is otherwise permitted to enter into same pursuant to the terms of the Triple Net Lease.

 

(ii)         maintain
in full force and effect the insurance policies currently in effect with respect to the Property (or replacements continuing similar
coverage) and not take or permit any action or failure to act that would impair any such coverage;

 

(iii)        operate,
manage and maintain the Property in a manner consistent in all material respects with past practice in the ordinary course;

 

(iv)        give
prompt written notice to Purchaser of any fire or other casualty affecting any portion of the Property after the date of this Agreement;
and

 

(v)         in
the event Seller becomes aware that any representation, warranty or covenant of Seller set forth in this Agreement will not be
true and correct in any material respect on the Closing Date, then Seller shall give prompt written notice thereof to Purchaser,
which notice shall include all appropriate information related thereto that is in Seller’s possession or control. In the
event Seller can undertake any action that will cause such representation, warranty or covenant to be true and correct, without
spending in excess of Fifty Thousand ($50,000.00) Dollars, then, in such event, Seller shall undertake such action and will be
provided with such reasonable adjournments of the Closing Date as may be necessary in order to complete such action. In the event
the basis for any such representation, warranty or covenant being untrue or incorrect is beyond the control of Seller, then, Purchaser
may either (a) cancel this Agreement and receive the return of its Remaining Deposit or
(b) proceed with the Closing, without any credit, abatement or adjustment in the Purchase Price.

 

(b)          Seller
shall not, except as permitted herein, without Purchaser’s prior approval:

 

(i)          encumber
or transfer any development rights appurtenant to the Property except as otherwise agreed to between the parties;

 

    	- 10 -

    	 

    

 

(ii)         enter
into any new lease for space at the Premises;

 

(iii)        amend
or modify (other than non-material amendments or modifications, or amendments and/or modifications which do not survive the Closing)
or renew any of the Contracts that will survive the Closing; or

 

(iv)        enter
into any new Contracts which survive the Closing.

 

(c)          Seller
further covenants that it will at any time and from time to time after the Closing Date, upon reasonable request of Purchaser,
do, execute, acknowledge and deliver, or will cause to be done, executed, acknowledged and delivered, all such further acts, deeds,
assignments, transfers, conveyances and assurances as may reasonably be required for the assigning, transferring, granting, assuring
and confirming to Purchaser, or to its successors and assigns, or for aiding and assisting in collecting and reducing to possession,
any or all of the assets or property being sold to Purchaser pursuant to this Agreement; provided that Seller shall not incur any
expense, or obligation or liability with respect to same.

 

8.          CONDITIONS
TO CLOSING:

 

(a)          The
obligation of Purchaser to effect the Closing shall be subject to the fulfillment (or written waiver by Purchaser) at or prior
to the Closing Date of the following conditions:

 

(i)          Representations
and Warranties. The representations and warranties of Seller contained in Section 9(c) of this Agreement shall be true and
correct in all material respects as of the Closing Date, as though made at and as of the Closing Date.

 

(ii)         Performance
of Obligations. Seller shall have in all material respects performed or completed with, as the case may be all covenants and
other obligations required to be performed or complied with by Seller under this Agreement on and prior to the Closing Date.

 

(iii)        Delivery
of Documents. Each of the documents required to be delivered by Seller at Closing shall have been delivered as provided herein.

 

(iv)        Intentionally
Omitted.

 

(v)         Title.
The Purchaser’s title company is ready, willing and able to issue to Purchaser a standard owner’s title policy for
the Premises, subject only to the Permitted Encumbrances and Violations, and as required pursuant to the terms and conditions of
this Agreement

 

(vi)        Intentionally
omitted.

 

 

    	- 11 -

    	 

    

 

(vii)       On
the Closing Date, no part of the Property shall have been acquired, by authority of any governmental agency or condemning authority
in the exercise of its power of eminent domain, nor on the Closing Date shall there be any threat or imminence of any such acquisition
(a “Taking”); if Purchaser elects to waive this condition, then Seller shall, on the Closing Date, (i) assign
and remit to Purchaser the net proceeds of any award or other proceeds of such Taking that has been collected by Seller as a result
of such Taking less the reasonable out-of-pocket expenses actually incurred by Seller in connection with such Taking, or
(ii) if no award or other proceeds have been collected, deliver to Purchaser an assignment of Seller’s right to any such
award or other proceeds that may be payable to Seller as a result of such Taking.

 

(viii)      On
the Closing Date, no action or proceeding shall have been instituted before any court or governmental authority that seeks to restrain
or prohibit any use of the Property or the consummation of the transaction contemplated herein (an action or proceeding instituted
by or on behalf of Purchaser or Seller or an affiliate of Purchaser or Seller shall not, in and of itself, cause this condition
to fail) (the “Action”). In the event any such action has been brought, that Purchaser’s title company is not
willing to insure without exception for that Action and issue title insurance to Purchaser in accordance with this Agreement, then
and in that event, Seller shall be entitled to (a) a reasonable adjournment of Closing, not to exceed thirty (30) days, during
which Seller may (x) settle, or dispose of, or otherwise deal with the action, so that the title company will agree to issue title
insurance to Purchaser in accordance with this Agreement; or if the title company is not willing to insure without exception for
the Action and issue title insurance to Purchaser in accordance with this Agreement by reason of pendency of the action, , or (b)
if Seller is unable to accomplish or satisfy either (x) hereof, then and in that event, Seller or Purchaser may cancel and
terminate this Agreement whereupon the Remaining Deposit
shall be immediately returned to Purchaser and no party hereto shall have any claims against the other, except with
respect to provisions that expressly survive termination of this Agreement.

 

(ix)         As
of the Closing Date, Seller shall not have commenced (within the meaning of any Bankruptcy Law) a voluntary case, nor shall there
have been commenced against Seller an involuntary case, nor shall Seller have consented to the appointment of a Custodian of it
or for all or any substantial part of its property, nor shall a court of competent jurisdiction have entered an order or decree
under any Bankruptcy Law that is for relief against Seller in an involuntary case or appointed a Custodian of Seller for all or
any substantial part of its property. The term “Bankruptcy Law” means Title 11, U.S. Code, or any similar state
law for the relief of debtors. The term “Custodian” means any receiver, trustee, assignee, liquidator or similar official
under any Bankruptcy Law.

 

(x)          On
the Closing Date, Seller shall have delivered (or caused to be delivered) to Purchaser’s title company such releases, UCC
termination statements or other instruments necessary to release of record and beneficially any and all mortgages, financing statements
or other security documents affecting all or any part of the Property, or, if the Existing Financing is being assigned to Purchaser’s
lender, then assignments thereof in lieu of terminations. If, Seller cannot produce such terminations (other than those related
to the Existing Financing) after using diligent, good faith efforts, and (i) Purchaser’s title company agrees to omit the
same as exceptions to title at no additional cost to Purchaser and (ii) Purchaser’s lender agrees that such omission is sufficient
to allow such lender to lend to Purchaser notwithstanding the failure of the Seller to produce such terminations, then Seller shall
be deemed to have satisfied such obligation.

 

    	- 12 -

    	 

    

 

(b)          Failure
of Condition. If any condition precedent to the Seller’s obligation to close is not satisfied by the Seller and, in the
event Seller can undertake any action that to comply with such condition precedent, without spending in excess of Fifty Thousand
($50,000.00) Dollars, then, in such event, Seller shall undertake such action and will be provided with such reasonable adjournments
of the Closing Date as may be necessary in order to complete such action. In the event the basis for an unsatisfied condition precedent
is beyond the control of Seller, then, Purchaser may either (a) cancel this Agreement and receive the return of its
Remaining Deposit or (b) proceed with the Closing,
without any credit, abatement or adjustment in the Purchase Price.

 

9.          CONDITION
OF THE PROPERTY; REPRESENTATIONS:

 

(a)          (i)          PURCHASER
HEREBY ACKNOWLEDGES THAT, EXCEPT AS EXPRESSLY SET FORTH IN THIS AGREEMENT, NEITHER SELLER, NOR ANY PERSON ACTING ON BEHALF OF SELLER,
NOR ANY PERSON OR ENTITY WHICH PREPARED OR PROVIDED THE MATERIALS, IF ANY, REVIEWED BY PURCHASER IN CONDUCTING ITS DUE DILIGENCE,
NOR ANY DIRECT OR INDIRECT OFFICER, DIRECTOR, PARTNER, MEMBER, SHAREHOLDER, EMPLOYEE, AGENT, REPRESENTATIVE, ACCOUNTANT, ADVISOR,
ATTORNEY, PRINCIPAL, AFFILIATE, CONSULTANT, CONTRACTOR, BROKER, SALESPERSON, SUCCESSOR OR ASSIGN OF ANY OF THE FOREGOING PARTIES
(SELLER, AND ALL OF THE OTHER PARTIES DESCRIBED IN THE PRECEDING PORTIONS OF THIS SENTENCE (OTHER THAN PURCHASER) SHALL BE REFERRED
TO HEREIN COLLECTIVELY AS THE “EXCULPATED PARTIES”) HAS MADE OR SHALL BE DEEMED TO HAVE MADE ANY ORAL OR WRITTEN
REPRESENTATIONS OR WARRANTIES, WHETHER EXPRESSED OR IMPLIED, BY OPERATION OF LAW OR OTHERWISE (INCLUDING WITHOUT LIMITATION WARRANTIES
OF HABITABILITY, MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE), WITH RESPECT TO THE PROPERTY, THE PERMITTED USE OR DEVELOPMENT
OF THE PROPERTY OR THE ZONING AND OTHER LAWS, REGULATIONS AND RULES APPLICABLE THERETO OR THE COMPLIANCE BY THE PROPERTY THEREWITH,
THE REVENUES AND EXPENSES GENERATED BY OR ASSOCIATED WITH THE PROPERTY, OR OTHERWISE RELATING TO THE PROPERTY OR THE TRANSACTIONS
CONTEMPLATED HEREIN.

 

(ii)         PURCHASER
FURTHER ACKNOWLEDGES THAT EXCEPT AS EXPRESSLY SET FORTH IN THIS AGREEMENT ALL MATERIALS WHICH HAVE BEEN PROVIDED BY ANY OF THE
EXCULPATED PARTIES HAVE BEEN PROVIDED WITHOUT ANY WARRANTY OR REPRESENTATION, EXPRESSED OR IMPLIED AS TO THEIR CONTENT, ACCURACY,
TRUTHFULNESS OR COMPLETENESS AND PURCHASER SHALL NOT HAVE ANY RECOURSE AGAINST SELLER OR ANY OF THE OTHER EXCULPATED PARTIES IN
THE EVENT OF ANY ERRORS THEREIN OR OMISSIONS THEREFROM.

 

(iii)        PURCHASER
IS ACQUIRING THE PROPERTY BASED SOLELY ON ITS OWN INDEPENDENT INVESTIGATION AND INSPECTION OF THE PROPERTY AND NOT IN RELIANCE
ON ANY INFORMATION (ORAL OR WRITTEN) PROVIDED BY SELLER, OR ANY OF THE OTHER EXCULPATED PARTIES, EXCEPT FOR THE REPRESENTATIONS
EXPRESSLY SET FORTH HEREIN.

 

    	- 13 -

    	 

    

 

(b)          PURCHASER
ACKNOWLEDGES AND AGREES THAT, EXCEPT AS OTHERWISE EXPRESSLY PROVIDED IN THIS AGREEMENT, IT IS PURCHASING THE PROPERTY “WHERE
IS; AS IS” AND “WITH ALL FAULTS”, VIOLATIONS (INCLUDING, BUT NOT LIMITED TO THE CONDITIONS GIVING RISE TO ANY
AND ALL VIOLATIONS) BASED UPON THE PAST AND/OR PRESENT CONDITION (PHYSICAL OR OTHERWISE) OF THE PROPERTY REASONABLE WEAR AND TEAR
AND LOSS BY CONDEMNATION OR FIRE OR OTHER CASUALTY EXCEPTED. PURCHASER ACKNOWLEDGES AND AGREES THAT ITS OBLIGATIONS UNDER THIS
AGREEMENT SHALL NOT BE SUBJECT TO ANY FINANCING CONTINGENCY.

 

(c)          Seller
hereby represents and warrants to Purchaser as of the date hereof and as of Closing as follows (each a “Representation”
and collectively, the “Representations”):

 

(i)          Seller
has full power and authority to enter into and perform this Agreement in accordance with its terms. This Agreement and all documents
executed by Seller which are to be delivered to Purchaser at Closing are, and at the time of Closing will be, duly authorized,
executed and delivered by Seller, and at the time of Closing will be the legal, valid and binding obligations of Seller enforceable
against Seller in accordance with their respective terms, and do not and, at the time of Closing will not, violate any provision
of any agreement or judicial order to which Seller or the Property is subject.

 

(ii)         
Seller has no actual knowledge of any action, suit, litigation, hearing or administrative proceeding, or claim pending against
Seller with respect to all or any portion of the Premises. Seller has not received any notice that any investigation, action, suit,
litigation, hearing or administrative proceeding or claim is threatened. Seller is not operating under or subject to, and Seller
is not in default with respect to, any order, writ, injunction or decree that related to the Property or any part thereof.

 

(iii)        There
are no condemnation, eminent domain or landmark proceedings pending, or to Seller’s Actual Knowledge, threatened against
the Premises.

 

(iv)        Seller
has not conveyed to any other party, any development rights with respect to the Property.

 

(v)         The
execution and delivery by Seller of, and the performance of and compliance by Seller with, the terms and provisions of this Agreement,
do not (i) conflict with, or result in a breach of, the terms, conditions or provisions of, or constitute a default under, the
organizational and governing documents of any entity constituting Seller or the organizational and governing documents of any member,
manager, general partner, or other stake holder of any entity constituting Seller, or any other agreement or instrument to which
any entity constituting Seller is a party or by which all or any part of the Property is bound, (ii) violate any restriction, requirement,
covenant or condition to which all or any part of the Property is bound, (iii) to the knowledge of Seller, constitute a violation
of any applicable code, resolution, law, statute, regulation, ordinance or rule applicable to Seller or the Property, (iv) constitute
a violation of any judgment, decree or order applicable to Seller or specifically applicable to the Property, or (v) require the
consent, waiver or approval of any third party, if any, which Seller shall obtain on or before Closing.

 

    	- 14 -

    	 

    

 

(vi)        There
is no bankruptcy, insolvency, rearrangement or similar action or proceeding, whether voluntary or involuntary, pending or, to the
Seller’s Actual Knowledge, threatened against Seller.

 

(vii)       Seller
has not received from any insurance company which carries insurance on any of the Property, or any Board of Fire Underwriters,
any notice of any defect or inadequacy in connection with the Property, or its operation and Seller has no knowledge of any such
defect or inadequacy which might materially increase the premium or cause the cancellation of any insurance policy or would materially
and adversely affect the insurability of the Property which has not been cured or corrected.

 

(viii)      Seller
is a “United States person” within the meaning of Sections 1445(f)(3) and 7701(a)(30) of the Internal Revenue
Code of 1986, as amended.

 

(ix)         Seller
has good title to all the Personalty and the execution and delivery to Purchaser of the Bill of Sale required to be delivered at
Closing shall vest good title to all of the Personalty in Purchaser (or its designee(s)), free and clear of liens, encumbrances
and adverse claims, except as provided in this Agreement.

 

(x)          No
person, firm, or entity other than Purchaser has any rights to acquire all or any part of the Premises.

 

(xi)         All
insurance premiums have been paid and no act has been taken or permitted or failed to be taken that would impair any insurance
coverage. There are no casualty or property damages claims outstanding; there are no claims other than personal injury claims under
Sellers’ liability policies; all existing claims are covered by the insurance and are being defended by the insurance companies.

 

(xii)        Seller
is not a party to any equipment leases.

 

(xiii)       The
execution, delivery and performance of this Agreement in accordance with its terms do not violate any contract, agreement, commitment,
order, judgment or decree to which Seller is a party or by which it or the Premises is bound.

 

(d)          Any
and all uses of the phrase, “to Seller’s Actual Knowledge” or other references to Seller’s knowledge
in this Agreement, shall mean the actual, present, conscious knowledge of Jack Elo. Without limiting the foregoing, Purchaser acknowledges
that Mr. Elo has not performed and is not obligated to perform any investigation or review of any files or other information in
the possession of Seller, or to make any inquiry of any persons, or to take any other actions in connection with the representations
and warranties of Seller set forth in this Agreement. Neither the actual, present, conscious knowledge of any other individual
or entity, shall be imputed to Mr. Elo, nor shall he be deemed to have constructive knowledge of any information known to any other
individual or entity.

 

    	- 15 -

    	 

    

 

(e)          The
representations and warranties of Seller contained in this Section 9 shall survive the Closing for three (3) months following the
Closing Date (the “Limitation Period”). Purchaser shall be entitled to payment from Seller of an amount equal
to the damages Purchaser suffered as a result of the breach of any representation and warranty.

 

(f)          Purchaser
hereby represents and warrants to Seller as of the date hereof and as of Closing that:

 

(i)          Purchaser
is a corporation duly organized and existing under the laws of the State of New York; has full power and authority to enter into
and perform this Agreement in accordance with its terms; and this Agreement and all documents executed by Purchaser which are to
be delivered to Seller at Closing are, and at the time of Closing will be, duly authorized, executed and delivered by Purchaser
and are, and at the time of Closing will be the legal, valid and binding obligations of Purchaser, enforceable against Purchaser
in accordance with their respective terms.

 

(ii)         Purchaser
is not acquiring the Property with the assets of an employee benefit plan (as defined in the Employee Retirement Income Security
Act of 1974, as amended (“ERISA”)), or, if plan assets will be used to acquire the Property, Purchaser will
deliver to Seller at Closing a certificate containing such factual representations as shall permit Seller and its counsel to conclude
that no prohibited transaction would result from the consummation of the transactions contemplated by this Agreement. Purchaser
is not a “party in interest” within the meaning of ERISA with respect to any beneficial owner of Seller.

 

(iii)        Purchaser
is acquiring the Property for its own use and development and will not assign this Agreement, or any rights hereunder, to any third
party at or prior to the Closing Date. Notwithstanding the foregoing, and provided and on condition that Purchaser has fulfilled
all of its obligations hereunder including, but not limited to, the obligation to pay Seller the adjusted Purchase Price at Closing,
Purchaser may, contemporaneously but not prior to the Closing hereunder, transfer and/or assign any unused zoning and development
rights, if any, relating to the Premises to any third party.

 

10.         DAMAGE
AND DESTRUCTION:

 

(a)          The
provisions of Section 5-1311 of the General Obligation law, known as the Uniform Vendor and Purchaser Risk Act, shall apply to
this Agreement and the sale of the Premises as set forth in this Agreement, provided, however, that any abatement in the purchase
price which the Purchaser may be entitled to by reason of a partial destruction or loss, as provided for in said act, shall in
no event exceed the actual amount of insurance monies collected or collectible by Seller for such loss in case of partial destruction
by fire or other causes covered by insurance carried by the Seller. In the event the moneys covering the above contingency has
not been collected at the time set for Closing, all rights with respect thereto shall be assigned by the Seller to the Purchaser
at the time of Closing and the Purchaser shall accept such assignment in lieu of any abatement, and shall pay to Purchaser the
amount of any deductible and self-insurance.

 

    	- 16 -

    	 

    

 

(b)          For
purposes of this paragraph and application of Section 5-1311 of the General Obligations Law, damage to be less than $150,000 to
repair shall be deemed “immaterial.”

 

(c)          Notwithstanding
the foregoing, in the event the combined value of any damage or destruction credits equals or exceeds twenty percent (20%) of the
Purchase Price individually or in the aggregate, then Purchaser may, at its option, and in its sole and absolute discretion, elect
to terminate this Agreement by written notice to Seller in which case Purchaser shall receive a refund of the Remaining Deposit
and all earnings thereon.

 

11.         BROKERS
AND ADVISORS:

 

(a)          Purchaser
represents and warrants to Seller that it has not dealt or negotiated with, or engaged on its own behalf or for its benefit, any
broker, finder, consultant, advisor, or professional in the capacity of a broker or finder (each a “Broker”)
in connection with this Agreement or the transactions contemplated hereby. Purchaser hereby agrees to indemnify, defend and hold
Seller and its direct and indirect shareholders, officers, directors, partners, principals, members, employees, agents, contractors
and any successors or assigns of the foregoing, harmless from and against any and all claims, demands, causes of action, losses,
costs and expenses (including reasonable attorneys’ fees of attorneys’ of Seller’s choosing, court costs and
disbursements) arising from any claim for commission, fees or other compensation or reimbursement for expenses made by any Broker
engaged by or claiming to have dealt with Purchaser in connection with this Agreement or the transactions contemplated hereby.

 

(b)          Seller
represents and warrants to Purchaser that (i) it has not dealt or negotiated with, or engaged on its own behalf or for its benefit,
any Broker in connection with this Agreement or the transactions contemplated hereby and agrees to indemnify, defend and hold Purchaser
and its direct and indirect shareholders, officers, directors, partners, principals, members, employees, agents, contractors and
any successors or assigns of the foregoing, harmless from and against any and all claims, demands, causes of action, losses, costs
and expenses (including reasonable attorneys’ fees of attorneys’ of Seller’s choosing , court costs and disbursements)
arising from any claim for commission, fees or other compensation or reimbursement for expenses made by any Broker engaged by or
claiming to have dealt with Seller in connection with this Agreement or the transactions contemplated hereby or otherwise incurred
by Purchaser as a result of Seller’s breach of its representations above.

 

(c)          The
provisions of this Section 11 shall survive the termination of this Agreement or the Closing.

 

    	- 17 -

    	 

    

 

12.         TAX
REDUCTION PROCEEDINGS

 

Seller
may file and/or prosecute an application for the reduction of the assessed valuation of the Premises for real estate taxes or a
refund of Property Taxes previously paid to the City of New York for any prior fiscal year and/or to contest any Premises value
assessment made for the Premises or any portion thereof for the current fiscal year. Seller shall have the right to withdraw, settle
or otherwise compromise tax certiorari proceedings affecting real estate taxes assessed against the Premises for any period prior
to the Closing. The amount of any tax refunds (net of attorneys’ fees and other costs of obtaining such tax refunds) with
respect to any portion of the Premises for the tax year in which the Apportionment Date occurs shall be apportioned between Seller
and Purchaser as of the Apportionment Date. If, in lieu of a tax refund, a tax credit is actually received with respect to any
portion of the Premises for the tax year in which the Apportionment Date occurs, then (x) within thirty (30) days after receipt
by Seller or Purchaser, as the case may be, of evidence of the actual amount of such tax credit (net of attorneys’ fees and
other costs of obtaining such tax credit), the tax credit apportionment shall be readjusted between Seller and Purchaser, and (y)
upon realization by Purchaser of a tax savings on account of such credit, Purchaser shall pay to Seller an amount equal to the
savings realized (as apportioned). All refunds or credits applicable to any fiscal period prior to the current Tax Year shall belong
solely to Seller (and Purchaser shall have no interest therein) and, if the same shall be paid to Purchaser or anyone acting on
behalf of Purchaser, same shall be paid to Seller within five (5) business days following receipt thereof. All refunds or credits
or applicable to the current fiscal period shall be adjusted between Seller and Purchaser as one of the closing adjustments and,
if the same shall be paid to Purchaser or anyone acting on behalf of Purchaser , Purchaser shall pay Seller its portion thereof
within five (5) business days following receipt thereof. Any tax reduction proceedings and tax savings for any period for
any periods after the Closing shall belong to the Purchaser exclusively and shall be controlled by the Purchaser exclusively. The
provisions of this Section 12 shall survive shall survive the termination of this Agreement or the Closing.

 

13.         TRANSFER
TAXES AND TRANSACTION COSTS:

 

(a)          At
the Closing, Seller and Purchaser shall execute, acknowledge, deliver and file all such returns as may be necessary to comply with
any applicable city, county or state conveyance tax laws and/or New York real estate conveyance tax laws (collectively, as the
same may be amended from time to time, the “Transfer Tax Laws”). The transfer taxes payable pursuant to the
Transfer Tax Laws shall collectively be referred to as the “Transfer Taxes”. At Closing, Seller shall pay to
the appropriate party via Purchaser’s title company the Transfer Taxes payable if any, in connection with the consummation
of the transactions contemplated by this Agreement.

 

(b)          Without
limiting any other express provision of this Agreement, Seller shall be responsible for (i) the costs and expenses of its legal
counsel, advisors and other professionals employed by it in connection with the sale of the Property, (ii) the Transfer Taxes described
above, (iii) any recording fees, costs and charges relating to Seller obligations with respect to remove certain specific Title
Objections, (iv) all Must Cure Items, as provided in Section 5(e), all charges in connection with required or elective escrows
delivered by Seller, in connection with Seller obligations or otherwise, and/or closing fees.

 

(c)          Without
limiting any other express provision of this Agreement, Purchaser shall be responsible for (i) the costs and expenses associated
with its due diligence, (ii) the costs and expenses of its legal counsel, advisors and other professionals employed by it in connection
with the sale of the Property, (iii) all premiums and fees for title examination and title insurance and endorsements obtained
and all related charges and survey costs in connection therewith, (iv) all costs and expenses incurred in connection with any financing
obtained by Purchaser, including without limitation, loan fees, mortgage recording taxes, financing costs and lender’s legal
fees, and (v) any recording fees for documentation to be recorded in connection with the transactions contemplated by this Agreement.

 

 

(d)          The
provisions of this Section 13 shall survive the termination of this Agreement or the Closing.

 

    	- 18 -

    	 

    

 

14.         DELIVERIES
TO BE MADE ON THE CLOSING DATE:

 

(a)          Seller’s
Documents and Deliveries: On the Closing Date, Seller shall deliver or cause to be delivered to Purchaser the following:

 

(i)          Duly
executed and acknowledged Deed in the form of Exhibit 2;

 

(ii)         Duly
executed Bill of Sale in the form of Exhibit 3;

 

(iii)        Copies,
of plans and specifications, technical manuals and similar materials for the Building to the extent same are in Seller’s
possession or control;

 

(iv)        A
duly executed “FIRPTA” certification as to Seller’s non-foreign status in the form of Exhibit 4;

 

(v)         Copies,
of all books and records relating to utility files and records of repairs and maintained by Seller during Seller’s ownership
thereof, to the extent same are in Seller’s possession or control, excluding Seller’s corporate tax returns and financial
statements;

 

(vi)        Keys
and combinations in Seller’s possession relating to the operation of the Premises;

 

(vii)       A
standard Owner’s affidavit of title (to enable the Purchaser’s title company to omit pre-printed exceptions or other
matters that are not Permitted Encumbrances) in a form acceptable to said title company;

 

(viii)      An
Assignment of the Triple Net Lease in the form annexed as Exhibit 5 hereto;

 

(ix)         Any
other document required by this Agreement;

 

(x)          A
copy of the resolution of the board of directors of Seller authorizing the execution, delivery and performance of this Agreement
and the consummation of the transactions contemplated by this Agreement certified as true and correct by the Secretary or Assistant
Secretary of Purchaser; (ii) a good standing certificate for Seller issued by the State of New York dated within thirty (30) days
of the Closing Date; and (iv) an incumbency certificate executed by the Secretary or Assistant Secretary of Purchaser with respect
to those officers of Purchaser executing any documents or instruments in connection with the transactions contemplated herein;
and

 

(xi)         A
Blumberg Form General Release from Seller in favor of Tenant and the Guarantor under the Lease releasing Tenant and Guarantor from
any claims Seller may have against either of them arising out of or relating to the Lease; provided, however, that Tenant and the
Guarantor shall remain liable to the Seller, to the extent set forth in the Lease or by operation of law for any and all claims
which any third-party ever had, now has or hereinafter can, shall or may have against Seller arising out of or relating to the
Lease and/or the Tenant’s use and occupancy of the Property, and, in addition, the Release shall not apply to, and/or waive
or limit any and all claims for indemnification and/or contribution that the Seller may have against Tenant and/or the Guarantor,
to the extent set forth in the Lease or by operation of law as a result of any claim asserted by a third-party.

 

    	- 19 -

    	 

    

 

(b)          Purchaser’s
Documents and Deliveries: On the Closing Date, Purchaser shall deliver or cause to be delivered to Seller the following:

 

(i)          Payment
of the balance of the Purchase Price payable in good funds and so as to be received by Closing by 5:00 p.m. eastern time, on the
Closing Date, as adjusted for apportionments under Section 6, credits and other adjustments set forth in this Agreement;

 

(ii)         If
Purchaser is a corporation, a copy of the resolution of the board of directors of Purchaser authorizing the execution, delivery
and performance of this Agreement and the consummation of the transactions contemplated by this Agreement certified as true and
correct by the Secretary or Assistant Secretary of Purchaser; (ii) a good standing certificate for Purchaser issued by the state
of incorporation of Purchaser, dated within thirty (30) days of the Closing Date; (iii) a good standing certificate for Purchaser
issued by the State of New York dated within thirty (30) days of the Closing Date; and (iv) an incumbency certificate executed
by the Secretary or Assistant Secretary of Purchaser with respect to those officers of Purchaser executing any documents or instruments
in connection with the transactions contemplated herein;

 

(iii)        If
Purchaser is a partnership, copies of partnership resolutions and/or consents of the constituent partners of Purchaser authorizing
the execution, delivery and performance of this Agreement and the consummation of the transactions contemplated by this Agreement,
all certified as true and correct by a general partner of Purchaser; and

 

(iv)        If
Purchaser is a limited liability company, (i) copies of the consent of the members of Purchaser authorizing the execution, delivery
and performance of this Agreement and the consummation of the transactions contemplated by this Agreement, all of the foregoing
being certified as true and correct by the managing member(s) or sole member of Purchaser; (ii) an incumbency certificate executed
by an officer or manager of Purchaser with respect to individuals executing any documents or instruments on behalf of Purchaser
in connection with the transactions contemplated herein.

 

(v)         A
Blumberg Form General Release from Tenant and Guarantor in favor of Seller releasing Seller from any claims Tenant and/or the Guarantor
may have against Seller arising out of or relating to the Lease; provided, however, that Seller shall remain liable to Tenant and
the Guarantor, to the extent set forth in the Lease or by operation of law for any and all claims which any third-party ever had,
now has or hereinafter can, shall or may have against Tenant and/or Guarantor arising out of or relating to the Lease and/or the
Tenant’s use and occupancy of the Property, and, in addition, the Release shall not apply to, and/or waive or limit any and
all claims for indemnification and/or contribution that the Tenant and/or Guarantor may have against Seller, to the extent set
forth in the Lease or by operation of law as a result of any claim asserted by a third-party

 

    	- 20 -

    	 

    

 

(c)          Jointly
Executed Documents: Seller and Purchaser shall on the Closing Date each execute, acknowledge (as appropriate) and deliver to
Purchaser’s title company for release at Closing the following documents:

 

(i)          The
returns required under the Transfer Tax Laws, if any, and any other tax laws applicable to the transactions contemplated herein;

 

(ii)         Any
other affidavit, document or instrument required to be delivered by Seller or Purchaser or reasonably requested by Purchaser’s
title company (so long as such request does not add additional expenses, costs, liabilities, warranties or covenants to Seller
unless otherwise provided for in this Agreement, including, without limitation, Seller’s Must Cure Items), pursuant to the
terms of this Agreement or applicable law in order to effectuate the transfer of title to the Premises.

 

15.         CLOSING
DATE:

 

(a)          The
closing of the transactions contemplated hereunder (the “Closing”) shall occur in the City of New York, County
of New York, and the documents referred to in Section 14 shall be delivered upon tender of the Purchase Price provided for in this
Agreement, by 5:00 p.m., eastern time, on the date that is thirty (30) days from the date Purchaser exercises the Option Agreement
(such date or such other date as mutually agreed upon by Seller and Purchaser, being referred to in this Agreement as the “Scheduled
Closing Date”; and the actual date of the Closing, the “Closing Date”), at the offices of Purchaser’s
lender, or the Purchaser’s counsel’s office or lender’s attorney’s office in New York County or Nassau
County. The Closing shall occur in person and shall be effectuated by means of concurrent delivery of the documents of title, transfer
of interests,) and the payment of the Purchase Price. Notwithstanding anything to the contrary
contained herein, Purchaser shall be entitled to one (1) thirty (30) day extension of the Scheduled Closing Date. 

 

(b)          In
the event Purchaser elects to adjourn the Closing for thirty (30) days pursuant to the provisions of Section 15(a), time shall
be of the essence as to the Purchaser, but not the Seller, with respect to the new Closing Date.

 

(c)          Purchaser
shall have the right to accelerate the Closing Date by providing Seller with thirty (30) days’ advance notice of the new
Closing Date. In the event Purchaser elects to accelerate the Closing and thereafter elects to adjourn the Closing, time shall
be of the essence at to the Purchaser but not the Seller with respect to the adjourned Closing Date.

 

16.         NOTICES:

 

(a)          All
notices, demands, requests or other communications (collectively, “Notices”) required to be given or which may
be given hereunder shall unless otherwise provided herein be in writing and shall be sent by (a) national overnight delivery service,
or (b) facsimile transmission (provided that the original shall be simultaneously delivered by national overnight delivery service
or personal delivery), or (c) personal delivery, addressed as follows:

 

    	- 21 -

    	 

    

 

i.            If
to Seller:

 

Jack Elo

Elo Organization

42 West 48th Street

New York, New York 10036

Facsimile: (212) 997-5539

 

with copies to:

 

Zane and Rudofsky

The Starrett Lehigh Building

601 West 26th Street, Suite 1315

New York, New York 10001

Attention: Eric S. Horowitz, Esq.

Facsimile: (212) 541-5555

 

ii.           
If to Purchaser:

 

RCI Holdings Inc.

10959 Cutten RoadHouston, Texas
77066

Facsimile: (281) 397-6730

 

with a copy to:

 

Meister Seelig & Fein LLP

Two Grand Central Tower

140 East 45th Street,
19th Floor

New York, New York 10017

Attention: Matthew E. Kasindorf,
Esq.

Facsimile: (646) 539-3658

 

(b)          Any
Notice so sent by overnight delivery service or personal delivery shall be deemed given on the date of receipt or refusal as indicated
on the return receipt, or the receipt of the national overnight delivery service or personal delivery service. Any Notice sent
by facsimile transmission shall be deemed given when received as confirmed by the telecopier electronic transmission report. A
Notice may be given either by a party or by such party’s attorney. Seller or Purchaser may designate, by not less than five
(5) business days’ notice given to the others in accordance with the terms of this Section 16, additional or substituted
parties to whom Notices should be sent hereunder.

 

(c)          To
the extent any Notice(s) is required or permitted to be given hereunder, to or by multiple parties on the part of the Seller, a
single Notice addressed to or signed by multiple entities shall be deemed adequate and sufficient as to all Notice requirements
of this Agreement.

 

    	- 22 -

    	 

    

 

17.         DEFAULT
BY PURCHASER OR SELLER:

 

(a)          If
(i) Purchaser shall default in the payment of the Purchase Price, or (ii) Purchaser shall default in the performance of any of
its other obligations to be performed prior to or on the Closing Date and shall fail to close in accordance with the terms of this
Agreement and, with respect to only a default under this Section 17(a)(ii) if such default shall continue for five (5) business
days after written notice from Seller to Purchaser (provided, however, that such notice shall not extend any time of the essence
closing date), Seller’s sole remedy by reason thereof shall be to terminate this Agreement and, upon such termination,
Seller shall be entitled to retain the Remaining Deposit as liquidated damages for Purchaser’s default hereunder, it being
agreed that the damages by reason of Purchaser’s default are difficult, if not impossible, to ascertain, and thereafter
Purchaser and Seller shall have no further rights or obligations under this Agreement except for those that are expressly provided
in this Agreement to survive the termination hereof. If Seller validly terminated this Agreement pursuant to a right given to it
hereunder and Purchaser takes any wrongful action in bad faith that materially interferes with Seller’s ability to sell,
exchange, transfer, lease, dispose of or finance the Property (including, without limitation, the filing of any lis pendens or
other form of attachment against the Property), then Purchaser shall be liable for all loss, cost, damage, liability or expense
(including, without limitation, reasonable attorneys’ fees, court costs and disbursements but excluding incidental, remote
and consequential damages, and lost profits) incurred by Seller by reason of such wrongful, bad faith action to contest by Purchaser.

 

(b)          If
Seller shall default in any of its obligations to be performed on or prior to the Closing Date or be in breach of any of covenants
or representations hereunder, and such default shall continue for five (5) business days after written notice to Seller, Purchaser
shall have the right (i) to seek to obtain specific performance of Seller’s obligations hereunder, provided that any action
for specific performance shall be commenced within sixty (60) days after written notice of such default and Seller has failed to
cure such default within such time period, and if Purchaser prevails thereunder, Seller shall reimburse Purchaser for all reasonable
legal fees, court costs and all other reasonable costs of such action or (ii) to terminate this Agreement, and receive from Seller
reimbursement of Purchaser’s reasonable and actual out-of-pocket costs and expenses incurred in connection with the transaction
(excluding however consultant fees, legal fees, and the cost of conducting inspections of the Property and other due diligence),
receive a return of the Remaining Deposit
and upon such return and delivery, this Agreement shall terminate and neither party hereto shall have any further obligations
hereunder except for those that are expressly provided in this Agreement to survive the termination hereof. Notwithstanding anything
herein to the contrary, Purchaser shall have no right to seek specific performance, if Seller shall be prohibited from performing
its obligations hereunder by reason of any law, regulation, or other legal requirement applicable to Seller. Notwithstanding anything
to the contrary contained herein, in the event Seller is able to comply with all of its obligations hereunder but nevertheless
willfully fails and refuses to close hereunder then, in such event, and only in such event, Purchaser may either seek specific
performance of this Agreement or, in the alternative, receive a return of the Remaining Deposit.

 

    	- 23 -

    	 

    

 

(c)          The
provisions of this Section 17 shall survive the termination hereof.

 

18.         HAZARDOUS
MATERIALS:

 

(a)          Purchaser
acknowledges that neither Seller nor any of the Exculpated Parties have made any representations or warranties as to whether the
Property contains or has in the past contained Hazardous Materials (either below, at or above ground level) or pertaining to the
extent, location, or nature of same. “Hazardous Materials” shall have the broadest meaning possible and shall include,
but not be limited to “hazardous substances” as defined in the Comprehensive Environmental Response Compensation and
Liability Act of 1980, 42 U.S.C. section 9601 et seq., as amended by the Superfund Amendments and Reauthorizations Act of 1986,
Pub.L. No.99-499,100 Stat. 1613, and as otherwise amended, and regulations adopted pursuant to such Acts, and shall also include
asbestos, all forms and fractions of petroleum and natural gas, petroleum products and any toxic biological matter.

 

(b)          Purchaser
further acknowledges that neither Seller nor any of the Exculpated Parties have made any warranties or representations with respect
to the compliance with any and all applicable codes, laws, rules, regulations, statutes, conditions or restrictions of any governmental
or quasi-governmental entity with respect to the investigation of, maintenance of and/or removal of any Hazardous Materials; and
Seller shall have no obligation to undertake any work, or incur any expense with respect to the investigation, removal, encapsulation,
remediation or any other action regarding any Hazardous Materials.

 

(c)          Purchaser
further acknowledges that this Purchase and Sale Agreement, and Purchaser’s obligation to close hereunder is not subject
to, nor conditioned upon any testing, inspection and/or investigation nor any other requirement regarding Hazardous Materials.

 

(d)          Purchaser
and its successors and assigns shall defend, indemnify and hold Seller and all Exculpated Parties harmless from and against any
and all cost, loss, damage, or expense including without limitation attorneys’ fees, arising from or relating to any claim,
suit, judgment, violation or proceeding brought or asserted by any third party of any nature, including, but not limited to governmental
or quasi governmental entity, of any nature arising out of or relating to the presence of any Hazardous Materials at, below, or
above ground level of the Property arising out of, or relating to Tenant’s use and occupation of the Building and/or which
was brought on to, or permitted to be brought on to the Premises by Tenant.

 

(e)          In
the event Purchaser elects to undertake any investigation and/or testing for Hazardous Materials, Purchaser shall provide Seller
with five (5) business days’ advance notice of the date and time of such investigation and/or testing. Such notice shall
set forth, with specificity, the name of the company undertaking the investigation and/or testing, together with the nature and
extent of such investigation and/or testing. Seller shall have the reasonable right to object to any such investigation or testing
that it deems unsafe or dangerous. Notwithstanding the fact that Purchaser has the right to conduct an investigation and/or testing
for Hazardous Materials the past and/or present existence of any Hazardous Materials and/or any condition arising out of or relating
to the past and/or present existence of any Hazardous Materials shall not provide Purchaser with grounds to cancel this Agreement.

 

    	- 24 -

    	 

    

 

(f)          Prior
to any inspection of the Property being undertaken by any of Purchaser’s agents or representatives, each such agent and/or
representative shall provide Seller with a certificate of insurance in a form reasonable satisfactory to Seller, naming Seller
as an additional insured for bodily injury and death in an amount of not less than One Million ($1,000,000) Dollars per occurrence
and for property damage in an amount of not less than Two Million ($2,000,000) Dollars.

 

(g)          Purchaser
shall pay Seller on demand the actual out-of-pocket costs and expenses of repairing and restoring any damage to the Property resulting
from Purchaser’s investigation unless such repairs and/or restoration is undertaken by Purchaser to the reasonable satisfaction
of Seller

 

(h)          The
terms and conditions of this Section 18 shall survive the Closing or termination of this Agreement.

 

19.         ENTIRE
AGREEMENT:

 

This Agreement contains
all of the terms agreed upon between Seller and Purchaser with respect to the subject matter hereof, and all prior agreements,
understandings, representations and statements, oral or written, between Seller and Purchaser are merged into this Agreement. The
provisions of this Section 19 shall survive the Closing or the termination hereof.

 

20.         AMENDMENTS:

 

This Agreement may not
be changed, modified or terminated, except by an instrument executed by Seller and Purchaser.

 

21.         WAIVER:

 

No waiver by either party
of any failure or refusal by the other party to comply with its obligations shall be deemed a waiver of any other or subsequent
failure or refusal to so comply. The provisions of this Section 21 shall survive the Closing or the termination hereof.

 

22.         SECTION
HEADINGS:

 

The headings of the various
sections of this Agreement have been inserted only for the purposes of convenience, and are not part of this Agreement and shall
not be deemed in any manner to modify, explain, expand or restrict any of the provisions of this Agreement. The provisions of this
Section 22 shall survive the Closing or the termination hereof.

 

    	- 25 -

    	 

    

 

23.         GOVERNING
LAW:

 

This Agreement shall
be governed by the laws of the State of New York without giving effect to conflict of laws principles thereof. The provisions of
this Section 23 shall survive the Closing or the termination hereof.

 

24.         PARTIES;
ASSIGNMENT AND RECORDING:

 

(a)          This
Agreement and the various rights and obligations arising hereunder shall inure to the benefit of and be binding upon Seller and
Purchaser and their respective successors and permitted assigns. Notwithstanding the foregoing, neither party may assign this Agreement
or the rights granted hereunder without the prior written consent of the other party, which may be withheld in such party’s
sole discretion, for any or no reason whatsoever. Purchaser shall have the right to assign this Agreement to an entity controlled
by Eric S. Langan.

 

(b)          Neither
this Agreement nor any memorandum hereof may be recorded without first obtaining Seller’s consent thereto, which may be withheld
for any or no reason whatsoever.

 

25.         FURTHER
ASSURANCES:

 

Seller and Purchaser
will do, execute, acknowledge and deliver all and every such further acts, deeds, conveyances, assignments, notices, transfers
and assurances as may be reasonably required by the other party, for the better assuring, conveying, assigning, transferring and
confirming unto Purchaser the Property and for carrying out the intentions or facilitating the consummation of this Agreement.
The provisions of this Section 25 shall survive the Closing or the termination hereof.

 

26.         THIRD
PARTY BENEFICIARY:

 

This Agreement is an
agreement solely for the benefit of Seller and Purchaser. No other person, party or entity shall have any rights hereunder nor
shall any other person, party or entity be entitled to rely upon the terms, covenants and provisions contained herein. The provisions
of this Section 26 shall survive the Closing or the termination hereof.

 

27.         JURISDICTION
AND SERVICE OF PROCESS:

 

The parties hereto agree
to submit to personal jurisdiction in the State of New York in any action or proceeding arising out of this Agreement and, in furtherance
of such agreement, the parties hereby agree and consent that without limiting other methods of obtaining jurisdiction, personal
jurisdiction over the parties in any such action or proceeding may be obtained within or without the jurisdiction of any court
located in New York and that any process or notice of motion or other application to any such court in connection with any such
action or proceeding may be served upon the parties by registered or certified mail to or by personal service at the last known
address of the parties, whether such address be within or without the jurisdiction of any such court. Seller hereby irrevocably
designates its counsel, Zane and Rudofsky, as its agent for service of process in connection with any matter relating to this Agreement.
Purchaser hereby irrevocably designates its counsel, Meister, Selig & Fein as its agent for service of process in connection
with any matter relating to this Agreement. The provisions of this Section 27 shall survive the Closing or the termination hereof.

 

    	- 26 -

    	 

    

  

28.         WAIVER
OF TRIAL BY JURY:

 

Seller and Purchaser
hereby irrevocably and unconditionally waive any and all right to trial by jury in any action, suit or counterclaim arising in
connection with, out of or otherwise relating to this agreement. The provisions of this Section 28 shall survive the Closing or
the termination hereof.

 

29.         MISCELLANEOUS:

 

(a)          This
Agreement may be executed in multiple counterparts, and pdf format, each of which shall be deemed an original and all of which,
taken together, shall constitute one and the same instrument.

 

(b)          Any
consent or approval to be given hereunder (whether by Seller or Purchaser) shall not be effective unless the same shall be given
in advance of the taking of the action for which consent or approval is requested and shall be in writing. Except as otherwise
expressly provided herein, any consent or approval requested of Seller or Purchaser may be withheld by Seller or Purchaser in its
sole and absolute discretion.

 

(c)          As
used in this Agreement, the term “business day” shall mean every day other than Saturdays, Sundays, all days
observed by the federal or New York State government as legal holidays and all days on which commercial banks in New York State
are required by law to be closed. Any reference in this Agreement to a “day” or a number of “days”
(other than references to a “business day” or “business days”) shall mean a calendar day
or calendar days. If any time period ends on a day that is not a business day, then such period shall automatically be extended
to the next business day.

 

(d)          The
provisions of this Section 29 shall survive the Closing or the termination hereof.

 

30.         ATTORNEYS’
FEES:

 

In the event of any litigation
between the parties hereto to enforce any of the provisions of this Agreement or any right of either party hereto, the substantially
non-prevailing party to such litigation shall pay to the substantially prevailing party all costs and expenses, including reasonable
attorneys’ fees and disbursements, incurred herein by the substantially prevailing party in and as part of the judgment rendered
in such litigation. This Section 30 shall survive Closing or the termination of this Agreement.

 

    	- 27 -

    	 

    

 

31.         LIKE-KIND
EXCHANGE:

 

Seller desires, and Purchase
is willing to cooperate (subject to the limitations set forth below), to effectuate the sale of the Property by means of an exchange
of “like-kind” property which will qualify as such under Section 1031 of the Internal Revenue Code of 1986, as amended,
and the regulations promulgated thereunder. Seller reserves the right to assign its rights, but not its obligations, hereunder
to a qualified intermediary as provided in I.R.C. Reg. 1.1031(k)-1(g)(4) on or before the Closing Date. Upon written notice from
Seller to Purchaser, Purchaser agrees to cooperate with Seller to effect one or more like-kind exchanges with respect to the Property
(including, without limitation, the signing of all required documents) provided that such cooperation shall be subject to the following
conditions: (a) such exchange shall not delay the Closing and shall occur either simultaneously with the Closing or the purchase
money proceeds payable to Seller shall be paid, upon Seller’s prior written direction to Purchaser, to a third party escrow
agent or intermediary such that Purchaser shall not be required to participate in any subsequent closing, (b) Purchaser shall not
be obligated to spend any sums or incur any expenses in excess of the sums and expenses which would have been spent or incurred
by Purchaser if there had been no exchange, and (c) Purchaser shall not be obligated to acquire or accept title to any property
other than the Property, and Seller shall not be obligated to acquire or accept title to any property. Once Purchaser has paid
the purchase money proceeds as directed by Seller, Purchaser shall have no further obligation hereunder with respect to such “like-kind”
exchange. Seller hereby indemnifies and holds Purchaser harmless from and against any costs, liabilities and expenses incurred
or suffered by Purchaser in connection with the “like-kind” exchange or exchanges described herein with respect to
the Property, which indemnity shall survive the Closing until the expiration of any applicable statute of limitations.

 

32.         PURCHASER’S
TITLE COMPANY:

 

Purchaser designates Metropolitan Abstract
Corporation, as agent for either First American Title, Stewart Title or Fidelity Title, as its title company for this transaction.
In the event such title company is unable or unwilling to provide Purchaser with the necessary title insurance in order to consummate
this transaction then, in such event, Purchaser shall be obligated to accept title insurance from a nationally recognized title
insurance company designated by Seller provided and/or on condition that Seller’s title insurance company shall provide Purchaser
with the insurance coverage that Purchaser’s title company was unwilling or unable to provide. In addition to, and notwithstanding
the foregoing, if Purchaser’s title company is willing to provide the necessary title insurance but requires that Purchaser
pay an additional premium for such insurance, but Purchaser is not obligated under this Contract to pay such additional premium
then, in such event, Seller may elect, in its sole discretion, to pay such premium on Purchaser’s behalf.

 

[SIGNATURE
PAGE TO FOLLOW]

 

    	- 28 -

    	 

    

 

IN WITNESS WHEREOF, Seller
and Purchaser have caused this Agreement to be executed the day and year first above written.

  

	 	REGENT 33rd REALTY CORP.
	 	 
	 	By:	 
	 	Jack Elo, President
	 	 
	 	RCI HOLDINGS INC.
	 	 
	 	By:	 
	 	Eric S. Langan, President

 

The undersigned hereby acknowledges and consents

to the Escrow Provisions of Section 3 hereof:

 

	ZANE and RUDOFSKY	 
	 	 
	By:	 	 
	Eric S. Horowitz, Partner	 

 

    	 

    	 

    

 

ACKNOWLEDGMENTS

 

	STATE OF NEW YORK	)
	 	ss.:
	COUNTY OF NEW YORK	)

 

On the ___ day of _______________,
before me, the undersigned, personally appeared JACK ELO, Managing Member of REGENT 33rd REALTY CORP., personally known
to me or proved to me on the basis of satisfactory evidence to be the individual whose name is subscribed to the within instrument
and acknowledged to me that he executed the same in his capacity, and that by his signature on the instrument, the entity upon
behalf of which the individual acted, executed the instrument.

 

	 	 
	 	Notary Public

 

	STATE OF NEW YORK	)
	 	ss.:
	COUNTY OF NEW YORK	)

 

On the ____ day of
______________, before me, the undersigned, personally appeared Eric S. Langan, President of RCI HOLDINGS, INC. personally known
to me or proved to me on the basis of satisfactory evidence to be the individual whose name is subscribed to the within instrument
and acknowledged to me that he executed the same in his capacity, and that by his signature on the instrument, the entity upon
behalf of which the individual acted, executed the instrument.

 

	 	 
	 	Notary Public

 

    	 

    	 

    

 

SCHEDULE A

 

SCHEDULE
OF PROPERTY

 

    	Sched A-1

    	 

    

 

    	Sched A-2

    	 

    

  

SCHEDULE
B 

 

LIST OF PERSONALY

   

NONE

 

    	 

    	 

    

 

EXHIBIT
1

 

ESCROW
AGENT'S WIRE INSTRUCTIONS

 

ZANE AND RUDOFSKY ATTORNEYS’
TRUST ACCOUNT

SIGNATURE BANK – WIRE INSTRUCTIONS

 

Signature Bank

565 Fifth Avenue

New York, NY 10017

ABA # 026013576

SWIFT # SIGN US 33

 

Account Title: Zane and Rudofsky, Attorneys’
Trust Account

Account No.: 1500881492

 

    	Exh 1

    	 

    

 

EXHIBIT
2

 

BARGAIN AND SALE DEED
WITHOUT COVENANTS

CONSULT YOUR LAWYER BEFORE SIGNING THIS
INSTRUMENT-THIS INSTRUMENT SHOULD BE USED BY LAWYERS ONLY

THIS INDENTURE, made the      day
of           ,       

 

BETWEEN

party of the first part, and

party of the second part,

WITNESSETH, that the party of the first part, in consideration
of

Dollars

paid by the party of the second part, does
hereby grant and release unto the party of the second part, the heirs or successors and assigns of the party of the second part
forever,

 

ALL that certain plot, piece or parcel of land, with
the buildings and improvements thereon erected, situate, lying and being in the

 

TOGETHER with all right, title and interest,
if any, of the party of the first part in and to any streets and roads abutting the above described premises to the center lines
thereof; TOGETHER with the appurtenances and all the estate and rights of the party of the first part in and to said premises;
TO HAVE AND TO HOLD the premises herein granted unto the party of the second part, the heirs or successors and assigns of the party
of the second part forever.

 

AND the party of the first part, in compliance
with Section 13 of the Lien Law, covenants that the party of the first part will receive the consideration for this conveyance
and will hold the right to receive such consideration as a trust fund to be applied first for the purpose of paying the cost of
the improvement and will apply the same first to the payment of the cost of the improvement before using any part of the total
of the same for any other purpose. The word “party” shall be construed as if it read “parties” whenever
the sense of this indenture so requires.

 

IN WITNESS WHEREOF, the party of
the first part has duly executed this deed the day and year first above written.

 

IN PRESENCE OF:

 

	 	 
	 	 
	 	 
	 	 
		 

 

    	Exh 2-1

    	 

    

 

 

	
        ACKNOWLEDGEMENT TAKEN IN NEW YORK STATE

         

        State of New York, County of      ,
        ss:

         

        On the      
        day of       in the year      , before me, the undersigned, personally
        appeared      

         

        , 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(ies), and that by his/her/their signature(s) on the instrument,
        the individual(s), or the person upon behalf of which the individual(s) acted, executed the instrument.

         

        ACKNOWLEDGEMENT BY SUBSCRIBING WITNESS TAKEN IN NEW YORK
        STATE

         

        State of New York, County of      ,
        ss:

        On the      
        day of       in the year      , before me, the undersigned, a Notary
        Public in and for said State, personally appeared      , the

        subscribing witness to the foregoing instrument,
        with whom I am personally acquainted, who, being by me duly sworn, did depose and say that he/she/they reside(s) in      

         

        (if the place of residence
        is in a city, include the street and street number if any, thereof); that he/she/they know(s)

         

        to be the individual described in and who
        executed the foregoing instrument; that said subscribing witness was present and saw said

         

        execute the same; and that said witness at the same time subscribed
        his/her/their name(s) as a witness thereto

         
	
        ACKNOWLEDGEMENT TAKEN IN NEW YORK STATE

         

        State of New York, County of      ,
        ss:

         

        On the      
        day of       in the year      , before me, the undersigned, personally
        appeared      

         

        , 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(ies), and that by his/her/their signature(s) on the instrument,
        the individual(s), or the person upon behalf of which the individual(s) acted, executed the instrument.

         

        ACKNOWLEDGEMENT TAKEN OUTSIDE NEW YORK STATE

         

        *State of      , County of      ,
        ss:

        *(Or insert District of Columbia, Territory,
        Possession or Foreign County)

         

        On the      
        day of       in the year , before me       the undersigned personally
        appeared

         

        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(ies), that by his/her/their signature(s) on the instrument, the individual(s) or the
        person upon behalf of which the individual(s) acted, executed the instrument, and that such individual make such appearance before
        the undersigned in the      

         

        (add the city or political subdivision and the state or country
        or other place the acknowledgement was taken).

	
        Bargain
        and Sale Deed

        Without
        Covenants

         

        Title No. 

         

         

        TO

         

         
	
         

         

        SECTION:

         

        BLOCK:

         

        LOT:

         

        COUNTY OR TOWN:

         

        RETURN BY MAIL TO:

		
         

         

         

         

         

         

         

         

  

    	Exh 2-1

    	 

    

 

EXHIBIT
3

 

FORM
OF BILL OF SALE

 

REGENT 33rd
REALTY CORP., a ______________________________, having an office _________________________________________________________ (“Seller"),
in consideration of Ten Dollars ($10.00) and other good and valuable consideration paid to Seller by ____________________________,
having an address at _____________________________ ________________________ ("Purchaser"), the receipt and sufficiency
of which are hereby acknowledged, hereby sells, conveys, assigns, transfers, delivers and sets over to Purchaser all fixtures,
equipment, machinery, if any, appliances and other personal property (other than the Excluded Personalty, as defined in that certain
Purchase and Sale Agreement dated _________ between Seller and Purchaser) owned by Seller and which are located at and used or
usable in connection with the real property located at ______________________________________.

 

TO HAVE AND TO HOLD
unto Purchaser and its successors and assigns to its and their own use and benefit forever.

 

This Bill of Sale is
made by Seller without recourse and without any expressed or implied representation or warranty whatsoever.

 

IN WITNESS WHEREOF,
Seller has caused this Bill of Sale to be executed as of this ___ day of ____________________, 2012.

 

	 	By:	 
	 	 	Name:
	 	 	Title:

 

    	Exh 3-1

    	 

    

 

EXHIBIT
4

 

FIRPTA
AFFIDAVIT

 

Section 1445 of the
Internal Revenue Code provides that a transferee of a U.S. real property interest must withhold tax if the transferor is a foreign
person. To inform the transferee that withholding of tax is not required upon the disposition of a U.S. real property interest
by REGENT 33rd REALTY CORP. ("Seller"), the undersigned hereby certifies the following:

 

1.          Seller
is not a foreign corporation, foreign partnership, foreign trust, or foreign estate (as such terms are defined in the Internal
Revenue Code and Income Tax Regulations).

 

2.          Seller's
U.S. employer identification number is _____________.

 

3.          Seller's
office is:

 

__________________

__________________

 

4.          The
undersigned understands that this certification may be disclosed to the Internal Revenue Service by the transferee and that any
false statement contained herein could be punished by fine, imprisonment, or both.

 

Under penalties of perjury
I declare that I have examined this certification and to the best of my knowledge and belief it is true, correct and complete,
and I further declare that I have authority to sign this document on behalf of Seller.

 

	 	REGENT 33rd REALTY CORP.
	 	 
	 	By:	 
	 	 	Name:
	 	 	Title:

 

_________________, 2012

 

    	Exh 4-1

    	 

    

 

EXHIBIT
5

 

ASSIGNMENT
AND ASSUMPTION AGREEMENT

 

THIS
ASSIGNMENT AND ASSUMPTION AGREEMENT, made and entered into this ____ day of _______________, 2012, by and between REGENT 33RD
REALTY CORP. ("Assignor"), a New York Corporation located c/o __________________________, and ___________________________
(“Assignee”), a ________________________, located ___________________________.

 

WITNESSETH:

 

In exchange for Ten
Dollars ($10.00), and other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, Assignor
hereby assigns to Assignee all Assignor's right, title and interest in, to and under that certain Lease dated February 3, 2003
(the “Lease”), by and between Assignor, as landlord, and Peregrine Enterprises Inc, as tenant, for the premises known
as 50 West 33rd Street, New York, New York;

 

TO HAVE AND TO HOLD unto each Assignee and
its successors and assigns to their and their own use and benefit forever.

 

Assignee hereby expressly
assumes the obligations of Assignor under the Lease, and Assignee shall defend, indemnify and hold Assignor harmless from and against
and all and claims, causes of action, costs and expenses (including, but not limited to reasonable attorney’s fees of the
attorneys of Assignor’s choosing) arising out of, or relating to the Lease.

 

This Agreement is made
by Assignor without recourse and without any expressed or implied representation or warranty whatsoever.

 

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

 

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

 

	 	ASSIGNOR:
	 	 
	 	REGENT 33RD REALTY CORP.
	 	 
	 	By:	 
	 	 
	 	ASSIGNEE:
	 	 
	 	By:	 

 

    	 

    	 

    

 

ACKNOWLEDGMENTS

 

	STATE OF NEW YORK	)
	 	ss.:
	COUNTY OF NEW YORK	)

 

On the ____ day of _____________________,
2012, before me, the undersigned, personally appeared _________________________, personally known to me or proved to me on the
basis of satisfactory evidence to be the individual whose name is subscribed to the within instrument and acknowledged to me that
he executed the same in his capacity, and that by his signature on the instrument, the individual, or the person upon behalf of
which the individual acted, executed the instrument, and that such person made such appearance before the undersigned.

 

	 	 
	 	Notary Public

 

	STATE OF NEW YORK	)
	 	ss.:
	COUNTY OF NEW YORK	)

 

On the ____ day of _____________________,
2012, before me, the undersigned, personally appeared _________________________, personally known to me or proved to me on the
basis of satisfactory evidence to be the individual whose name is subscribed to the within instrument and acknowledged to me that
he executed the same in his capacity, and that by his signature on the instrument, the individual, or the person upon behalf of
which the individual acted, executed the instrument, and that such person made such appearance before the undersigned.

 

	 	 
	 	Notary Public

  

    	 

    	 

    

 

EXHIBIT B

  

Record and Return to:

 

Emily B. Wolf, Esq.

Meister Seelig & Fein LLP

2 Grand Central Tower

140 East 45th Street, 19th Floor

New York, New York 10017

 

MEMORANDUM OF OPTION AGREEMENT

 

This Memorandum of Option Agreement (“Memorandum”)
dated October 21, 2013 between Regent 33RD Realty Corp, a New York corporation, with an address c/o Zane and Rudofsky,
601 West 26th Street, Suite 1315, New York, New York 10001 (“Optioner”) and RCI Holdings Inc., a Texas corporation,
having an address of 10959 Cutten Road, Houston, Texas 77066 (“Optionee”), who agree as follows:

 

For good and valuable consideration, the receipt and sufficiency
of which are hereby acknowledged, Optioner grants to Optionee the exclusive right to purchase Optioner’s interest in the
real property known as 50 West 33rd Street, in the County of New York, City and State of New York, further described
as Block 834 and Lot 73, more particularly described in Exhibit A attached hereto, pursuant to that certain Option Agreement (“Option
Agreement”) dated as ofOctober 21, 2013, from the date hereof until midnight on the 30th day of September, 2018.

 

All the terms and conditions of the Option Agreement are made
a part of this Memorandum of Option Agreement as though fully set forth herein

 

[Signature pages to follow]

 

    	 

    	 

    

 

IN WITNESS WHEREOF,
the Optioner and Optionee have duly executed this Memorandum, this _21st _ day of October, 2013.

 

	 	OPTIONER:
	 	 
	 	REGENT 33RD REALTY CORP., a New York corporation
	 	 
	 	By:	/s/ Jack Elo
	 	Name:	Jack Elo
	 	Title:  	Managing Member

 

	STATE OF NEW YORK	)	 
	 	:	ss.:
	COUNTY OF ___NY_____	)	 

 

On the _21st _ day of
October in the year 2013 before me, the undersigned, a notary public in and for said State, personally appeared Jack Elo, Managing
Member of Regent 33rd Realty Corp., personally known to me or proved to me on the basis of satisfactory evidence to
be the individual whose name is subscribed to the within instrument and acknowledged to me that he executed the same in his capacity,
and that by his signature on the instrument, the individual, or the person upon behalf of which the individual acted, executed
the instrument.

 

	/s/ Kara A. Lobdell	 
	Notary Public	 

 

[Signature page for Memorandum of Option
Agreement]

 

    	 

    	 

    

 

	 	OPTIONEE:
	 	 
	 	RCI HOLDINGS INC., a Texas corporation
	 	 
	 	By:	/s/ Eric S. Langan
	 	Name:  	Eric S. Langan
	 	Title:  	President

 

	STATE OF __Texas_____	)	 
	 	:	ss.:
	COUNTY OF _Harris____	)	 

 

On the ____ day of October in the year
2013 before me, the undersigned, a notary public in and for said State, personally appeared Eric S. Langan, President of RCI Holdings,
Inc., personally known to me or proved to me on the basis of satisfactory evidence to be the individual whose name is subscribed
to the within instrument and acknowledged to me that he executed the same in his capacity, and that by his signature on the instrument,
the individual, or the person upon behalf of which the individual acted, executed the instrument.

 

	/s/ Kim Milton	 
	Notary Public	 

 

[Signature page for Memorandum of Option
Agreement]

 

    	 

    	 

    

 

EXHIBIT A – LEGAL DESCRIPTION

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