Document:

Exhibit 10.1

 

EXECUTION VERSION

 

OPTION AGREEMENT

 

BY AND BETWEEN

 

470 4th AVENUE INVESTORS LLC,

a New York limited liability company, Owner,

 

AND

 

470 4TH AVENUE FEE OWNER, LLC,

a Delaware limited liability company,

 

as Optionee

 

470 4th Avenue, Brooklyn, New
York 11215

 

As of September 8, 2017

 

    	

     

    

 

OPTION AGREEMENT

 

THIS OPTION AGREEMENT
(hereinafter sometimes referred to as the “Agreement”) is hereby made and entered into as of the 8th
day of September, 2017 (the “Option Effective Date”) by and between 470 4th AVENUE INVESTORS LLC,
a New York limited liability company, having an address at c/o Adam America Real Estate, 850 Third Avenue, Suite 13-D, New York,
New York 10022 (hereinafter referred to as the “Owner” or “Grantor”), and 470 4TH AVENUE
FEE OWNER, LLC, a Delaware limited liability company, having an address c/o Trinity Place Holdings Inc., 717 5th
Avenue, Suite 1303, New York, New York 10022 (hereinafter referred to as the “Optionee”).

 

RECITALS

 

A.           Grantor
is the owner of: (a) that certain piece, parcel or tract of land located in the County of Kings, City and State of New York, as
more fully described on Exhibit “A” annexed hereto and made a part hereof, and known as 470 4th Avenue,
Brooklyn, New York 11215, together with (i) all easements, covenants, agreements, rights, privileges, development rights and appurtenances
thereto and (ii) all right, title and interest, if any, of the Grantor in and to any land lying in the bed of any street, road
or avenue open or proposed in front of or adjoining said premises to the centerline thereof, and all right, title and interest
of the Grantor in any award made or to be made in lieu thereof and in and to any unpaid award for damage to said premises by reason
of change of grade of any street (the “Land”); (b) certain development rights and other rights and benefits
conveyed to Grantor’s predecessor in title pursuant to a Zoning Lot Development and Easement Agreement dated February 4,
2014 and recorded on February 26, 2014 as CRFN 2014000070415 (the “Excess Development Rights”); (c) the building
(the “Building”), structures, improvements, fixtures, facilities, installations and other systems of every kind
and description now or hereinafter in, on, over and under the Land (hereinafter collectively, the “Improvements”;
and together with the Land and Excess Development Rights, collectively, the “Option Subject Premises”); (d)
all furniture, furnishings, equipment, machinery, appliances and any other tangible personal property of every kind and description
in, on, over and under the Option Subject Premises owned by Grantor and not owned by tenants under the Leases (as hereinafter defined)
(collectively, the “Personal Property”) as more particularly set forth on Exhibit “F” attached
hereto; (e) the management, service equipment, supply, security, maintenance, concession or other agreements with respect to or
affecting the Option Subject Premises (collectively, the “Service Agreements”) which are then in effect and
not terminated as of the Closing Date (as defined in the Purchase and Sale Agreement); (f) any and all guaranties, licenses, approvals,
certificates, permits, consents, authorizations, variances and warranties relating to the Option Subject Premises (collectively,
the “Permits and Licenses”); (g) all right, title and interest of Grantor in and to the Leases; (h) any and
all logos, designs and any other intellectual property rights, related to the Option Subject Premises (the “Intangible
Property”) ((a) through (h) above hereinafter collectively called the “Option Property”). Defined
terms used herein and not otherwise defined shall have the meanings ascribed to them in the purchase and sale agreement annexed
hereto and made a part hereof as Exhibit “B” (the “Purchase and Sale Agreement”).

 

B.           Grantor
desires to grant Optionee an option (the “Option”) to purchase the Option Property upon the terms and conditions
set forth below and in the Purchase and Sale Agreement.

 

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NOW, THEREFORE, in
consideration of the following mutual covenants and for other good and valuable consideration, the parties agree as follows:

 

1.          GRANT
OF OPTION. The Owner, in consideration of the Option Deposit (as hereinafter defined) and other good and valuable consideration
received from Optionee, receipt of which is hereby acknowledged, hereby grants to Optionee the Option to purchase, upon and pursuant
to the terms set forth herein, the Option Property.

 

1.1           THE
OPTION PERIOD. The Option shall run and be exercisable, upon and subject to the terms and conditions set forth herein, for
a period commencing on February 1, 2018 and expiring at 11:59 p.m. on February 28, 2018 (the “Option Period”).
The Optionee shall have no right or entitlement to an extension of the Option Period (except as otherwise provided in Section
1.4 hereof). No later than five (5) business days after receipt of the Option Exercise Notice (as hereinafter defined) from
Optionee, and in all events prior to the Closing Date, to the extent changes to such exhibits are required due to actions taken
in accordance with the terms hereof after the date hereof and prior to the date of the Option Exercise Notice, Owner shall deliver
to Optionee and Escrow Agent updated Exhibits D and F and Schedule 5.01(l) to the Purchase and Sale Agreement (the “Updated
Exhibits and Schedules”) consistent with the terms of this Agreement and the Purchase and Sale Agreement.

 

1.2           EXERCISE
OF OPTION. The Option may be exercised at any time during the Option Period, and prior to the expiration of the Option Period,
by written notice (the “Option Exercise Notice”) from Optionee to Owner and Escrow Agent (as hereinafter defined)
in accordance with the Notice provisions set forth in Section 9 below, which notice to Escrow Agent shall be accompanied
by two (2) original copies of the Purchase and Sale Agreement executed by Optionee (“Optionee’s Signatures”).
Escrow Agent shall hold Optionee’s Signatures in escrow pending receipt of the Updated Exhibits and Schedules from Owner.
The date Escrow Agent receives the Updated Exhibits and Schedules from Owner as aforesaid shall be deemed the “Effective
Date” under the Purchase and Sale Agreement, as defined therein. Owner and Optionee acknowledge that Owner has heretofore
executed two (2) original and undated copies of the Purchase and Sale Agreement and delivered the same in escrow to Escrow Agent.
On the Effective Date, the Purchase and Sale Agreement shall be in full force and effect and Escrow Agent is authorized, without
any further action being required by either party, to date the Purchase and Sale Agreement as of the Effective Date and take all
necessary action to assemble two original copies of the Purchase and Sale Agreement, together with the Updated Exhibits and Schedules
attached, and release such copies from escrow by delivering one (1) original copy of the Purchase and Sale Agreement to each of
Owner and Optionee. Escrow Agent shall have no authority to release the Purchase and Sale Agreement from escrow prior to the Effective
Date for any reason whatsoever. Notwithstanding the foregoing, within two (2) business days after written request therefor from
Optionee (which request shall be made no earlier than the Effective Date), Owner shall execute two (2) original fully-compiled
and complete counterparts of the Purchase and Sale Agreement (containing the Updated Exhibits and Schedules) and deliver same to
Optionee.

 

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1.3           PURCHASE
PRICE. The purchase price (“Purchase Price”) for the Option Property is EIGHTY ONE MILLION AND 00/100 ($81,000,000.00)
DOLLARS, payable in accordance with the terms and conditions of this Agreement and the Purchase and Sale Agreement, except that
Optionee shall pay to the Title Company (as hereinafter defined), as escrow agent hereunder (“Escrow Agent”),
no later than the first business day following the date upon which this Agreement is fully executed by Owner and Optionee, EIGHT
MILLION ONE HUNDRED THOUSAND AND 00/100 DOLLARS ($8,100,000.00) (together with any interest and earnings on all such amounts, the
“Option Deposit”) by wire transfer of immediately available federal funds, which amount shall be held in escrow
by the Escrow Agent and applied to the Purchase Price at Closing (as defined in the Purchase and Sale Agreement). At the Closing
under the Purchase and Sale Agreement, Optionee shall deliver the Purchase Price, minus the Option Deposit, and plus or minus adjustments
as hereinafter provided, representing the balance of the Purchase Price, to be paid by wire transfer of immediately available federal
funds, to accounts specified by Owner at a bank or banks designated by Owner.

 

1.4           FAILURE
TO EXERCISE OPTION. In the event that the Optionee fails to exercise the Option during the Option Period in accordance with
the terms and conditions set forth in Section 1.2 above, then, in such event, Owner shall send Optionee written notice of
such failure. If such failure continues for five (5) business days following Optionee’s receipt of such notice, then: (i)
Owner shall have no obligation to sell, transfer or assign the Option Property to Optionee under any terms or circumstances whatsoever;
(ii) the Purchase and Sale Agreement shall remain ineffective and of no legal force or effect, and the parties shall have no enforceable
rights or obligations to one another thereunder, without notice or presentment required; (iii) the parties shall have no further
obligations to one another under this Agreement; and (iv) Optionee shall forfeit all rights and claims to the Option Deposit and
Escrow Agent shall promptly deliver the Option Deposit to Grantor. Grantor expressly waives its right to seek any other damages
in the event of any default by Optionee hereunder. If Optionee fails to exercise the Option during the Option Period but cures
such failure within the five (5) business day period referenced above, then the provisions of Section 1.2 in respect of the timely
exercise of the Option shall be applicable as if Optionee timely exercised the Option; provided that the Scheduled Closing Date
(as defined in the Purchase and Sale Agreement) shall mean the later of (x) February 28, 2018 or (y) the fifth (5th)
business day to occur after Optionee cures such failure.

 

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2.          INSPECTION
ACCESS. During the period prior to Closing, Optionee, personally or through its authorized agent or representative, shall be
entitled upon reasonable advance notice and at reasonable times to Owner to enter upon the Option Subject Premises during normal
business hours and shall have the right to make such non-invasive investigations, including, without limitation, appraisals, engineering
studies, Phase I environmental studies and underwriting analyses, as Optionee deems necessary or advisable, subject to the following
limitations: (a) such access shall be subject to the rights of tenants and shall not violate any law or otherwise interfere, in
any material respect, with the development or operations of the Option Property or otherwise expose Owner to a material risk of
liability; (b) Optionee shall give Owner written notice at least one (1) business day before conducting any inspections or communicating
with any property management, marketing or leasing personnel or agents, and a representative of Owner shall have the right to be
present when Optionee or its representatives conduct investigations on the Option Subject Premises or communicate with property
management, marketing or leasing personnel or agents (Owner agreeing to make its representative available for such purpose upon
reasonable notice); (c) neither Optionee nor its representatives shall interfere with the use, development, occupancy or enjoyment
of Owner or any tenants, subtenants or other occupants of the Option Subject Premises or their respective employees, contractors,
customers or guests, in any material respect; (d) Optionee shall use commercially reasonable efforts to perform all on-site due
diligence reviews on an efficient basis; (e) Optionee shall, at Optionee’s sole cost and expense, promptly repair any damage
to the Option Subject Premises or any portion thereof caused by inspections made by Optionee or any its affiliates, agents or representatives
pursuant hereto, failing which Owner may perform such repairs and Optionee shall promptly reimburse Owner for the reasonable cost
thereof; and (f) prior to Optionee, or its employees and agents, entering on the Option Subject Premises, Optionee shall deliver
to Owner a certificate of liability insurance with a combined single limit for bodily injury and property damage of a least $3,000,000.00
and naming Owner as additional insured against liabilities, damages, or claims for bodily injury, death or property damage resulting
from such entry. Further, Owner agrees to make available to Optionee, or to its duly authorized agents or representatives, all
due diligence that Optionee may reasonably request, including, without limitation, copies of all Leases, Service Agreements, Permits
and Licenses, and all applicable books and records relating to the Option Property and the operation, construction, and maintenance
thereof to the extent that such materials are in Owner’s possession or control. Such items may be examined at reasonable
times during normal business hours upon prior reasonable notice to Owner. Optionee hereby indemnifies Owner against and agrees
to defend and hold Owner harmless from all actual third party costs, expenses, claims, demands, causes of action, and suits of
any nature whatsoever, to the extent directly resulting from or arising out of Optionee’s inspections of the Option Subject
Premises (provided, however, such indemnification and agreement to defend and hold harmless shall not apply to the mere discovery
of a pre-existing environmental or physical conditions, the non-negligent aggravation of pre-existing environmental or physical
conditions on, in, under or about the Option Subject Premises, any existing violations of law or any negligence or willful misconduct
of Owner or its agent or representative). In no event shall Optionee be responsible for any consequential, punitive or special
damages. The obligations of Optionee under this Section 2 shall survive Closing and any termination of this Agreement, any
other provision hereof to the contrary notwithstanding.

 

3.          DESTRUCTION,
DAMAGE OR CONDEMNATION.

 

3.1           Casualty.
Owner shall keep in effect until Closing its present hazard insurance. The risk of any loss by fire or other casualty or by the
taking of the Option Subject Premises or any part thereof by eminent domain shall be assumed solely by Owner until Closing; provided,
however, if all or any part of the Improvements are damaged by fire or other casualty occurring on or after the Option Effective
Date and prior to the Closing Date, whether or not such damage affects a material part of the Improvements, then:

 

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(a)          if
the estimated cost of repair or restoration is less than or equal to five percent (5%) of the Purchase Price, and the casualty
is fully covered by insurance (other than the deductible with respect thereto), neither party shall have the right to terminate
this Agreement and, if Optionee shall exercise the Option, the parties shall nonetheless consummate this transaction in accordance
with this Agreement, without any abatement of the Purchase Price. In such event, (A) Owner shall assign to Optionee and Optionee
shall have the right to make a claim for and to retain all of Owner’s interest in Owner’s casualty insurance policies
including, without limitation, any casualty insurance proceeds received or receivable under the casualty insurance policies in
effect with respect to the Option Subject Premises on account of such physical damage or destruction, (B) Optionee shall receive
a credit against the cash due at Closing for the amount of the deductible on such casualty insurance policy and (C) Owner shall
deliver to Optionee any insurance proceeds theretofore received by Owner less the amounts reasonably and actually expended by Owner
to collect any such insurance proceeds or to remedy any unsafe conditions at the Option Subject Premises in compliance with applicable
law.

 

(b)          if
the estimated cost of repair or restoration exceeds five percent (5%) of the Purchase Price, or the casualty is not fully covered
by insurance (other than the deductible with respect thereto), Optionee shall have the option, exercisable on or prior to the Casualty
Election Date (as defined below), time being of the essence, to terminate this Agreement by delivering notice of such termination
to Owner, whereupon the Option Deposit shall be returned to Optionee and this Agreement shall be deemed canceled and of no further
force or effect, and neither party shall have any further rights or liabilities against or to the other in respect thereof except
for such provisions which are expressly provided in this Agreement to survive the termination hereof. If a fire or other casualty
described in this Section 3.1(b) shall occur and Optionee shall not timely elect to terminate this Agreement, then, if Optionee
shall exercise the Option, Optionee and Owner shall consummate this transaction in accordance with this Agreement, without any
abatement of the Purchase Price. In such event, (A) Owner shall assign to Optionee and Optionee shall have the right to make a
claim for and to retain all of Owner’s interest in Owner’s casualty insurance policies including, without limitation,
any casualty insurance proceeds received or receivable under the casualty insurance policies in effect with respect to the Option
Subject Premises on account of such physical damage or destruction, (B) Optionee shall receive a credit against the cash due at
Closing for the amount of the deductible on such casualty insurance policy and (C) Owner shall deliver to Optionee any insurance
proceeds theretofore received by Owner less the amounts reasonably and actually expended by Owner to collect any such insurance
proceeds or to remedy any unsafe conditions at the Option Subject Premises in compliance with applicable law.

 

(c)          The
estimated cost to repair and/or restore shall be established by estimates obtained from independent contractors jointly selected
by Optionee and Owner, each acting reasonably.

 

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(d)          The
provisions of this Section 3.1 supersede any law applicable to the Option Subject Premises governing the effect of fire
or other casualty in contracts for real property. Any disputes under this Section 3.1 as to the cost of repair or restoration
or the time for completion of such repair or restoration shall be resolved by expedited arbitration in accordance with Exhibit
“C”.

 

(e)          “Casualty
Election Date” means the tenth (10th) business day following Optionee’s receipt of the estimates as described in
clause (c) above.

 

(f)          Owner
shall not settle any casualty insurance claim without first obtaining Optionee’s consent thereto (which consent shall not
be unreasonably withheld, delayed or conditioned).

 

3.2           Condemnation.
If, prior to the Closing Date, any part of the Option Subject Premises is taken (other than a temporary taking), or if Owner shall
receive an official notice from any governmental authority having eminent domain power over the Option Subject Premises of its
intention to take, by condemnation or eminent domain proceeding, all or any part of the Option Subject Premises (a “Taking”),
then Owner shall so notify Optionee (the “Taking Notice”), which Taking Notice shall describe the portion(s)
of the Option Subject Premises which will or might be taken, and the following provisions shall apply:

 

(a)          if
such Taking involves no portion of the Improvements, less than five percent (5%) of the Land and does not render any portion of
the Option Subject Premises unusable for its current or intended purpose or inaccessible as determined by an independent architect
jointly selected by Owner and Optionee, each acting reasonably, neither party shall have any right to terminate this Agreement,
and, if Optionee shall exercise the Option, the parties shall nonetheless consummate this transaction in accordance with this Agreement,
without any abatement of the Purchase Price; provided, however, that Owner shall, on the Closing Date, (A) assign and remit to
Optionee the net proceeds of any award or other proceeds of such Taking which may have been collected by Owner as a result of such
Taking less the reasonable out-of-pocket expenses incurred by Owner in connection with such Taking and (B) to the extent that the
award or other proceeds shall not have been collected, deliver to Optionee an assignment of Owner’s right to any such award
or other proceeds which may be payable to Owner as a result of such Taking (it being understood that Optionee shall reimburse Owner
for the reasonable out-of-pocket expenses incurred by Owner in connection with such Taking).

 

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(b)          if
such Taking involves any portion of the Improvements, more than five percent (5%) of the Land or renders the Option Subject Premises
unusable for its current purpose or inaccessible as determined by an independent architect jointly selected by Owner and Optionee,
each acting reasonably, Optionee shall have the option, exercisable on or prior to the Condemnation Election Date (as defined below),
time being of the essence, to terminate this Agreement by delivering notice of such termination to Owner, whereupon the Option
Deposit shall be returned to Optionee and this Agreement shall be deemed canceled and of no further force or effect, and neither
party shall have any further rights or liabilities against or to the other in respect thereof except pursuant to the provisions
of this Agreement which are expressly provided to survive the termination hereof. If a Taking described in this Section 3.2(b)
shall occur and Optionee shall not timely elect to terminate this Agreement, then, if Optionee shall exercise the Option, Optionee
and Owner shall consummate this transaction in accordance with this Agreement, without any abatement of the Purchase Price or any
liability or obligation on the part of Owner by reason of such Taking; provided, however, that Owner shall, on the Closing Date,
(A) assign and remit to Optionee the net proceeds of any award or other proceeds of such Taking which may have been collected by
Owner as a result of such Taking less the reasonable out-of-pocket expenses incurred by Owner in connection with such Taking and
(B) to the extent that the award or other proceeds shall not have been collected, deliver to Optionee an assignment of Owner’s
right to any such award or other proceeds which may be payable to Owner as a result of such Taking (it being understood that Optionee
shall reimburse Owner for the out-of-pocket reasonable expenses incurred by Owner in connection with such Taking).

 

(c)          The
provisions of this Section 3.2 supersede any law applicable to the Option Subject Premises governing the effect of condemnation
in contracts for real property.

 

(d)          “Condemnation
Election Date” means the tenth (10th) business day following Optionee’s receipt of an independent architect’s
determination as described in clause (b) above.

 

4.          TITLE
AND CONVEYANCE.

 

4.1           On
the Closing Date, the Option Subject Premises shall be conveyed by Bargain and Sale Deed Without Covenant Against Grantor’s
Acts (the “Deed”) in proper form for recording (and otherwise in accordance with the terms of the Purchase and
Sale Agreement), which shall be properly executed and acknowledged so as to convey to Optionee all of Grantor’s right, title
and fee simple interest to the Option Property, subject only to the following (the “Permitted Encumbrances”)
as the same may be modified in accordance with Sections 4.3 and 4.4:

 

(a)          Real
estate taxes, water charges and sewer rents not yet due and payable;

 

(b)          The
leases, if any, entered into by Grantor as of the Closing Date in accordance with Section 7.1(a) herein (individually referred
to herein as a “Lease” and, collectively, as the “Leases”); provided that all rights of tenants
under such Leases shall be “as tenants only”;

 

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(c)          State
of facts reflected on that survey made by NY Land Surveyor P.C. dated August 27, 2008 and last revised June 13, 2017 with respect
to the Option Property (the “Survey”);

 

(d)          Rights,
if any, pursuant to written agreements of utility companies to operate and maintain lines, cables, pipes, poles and distribution
boxes in, over and upon the Option Subject Premises;

 

(e)          Building
and zoning laws, restrictions, ordinances, codes and regulations affecting the Option Subject Premises, and all amendments and
additions thereto now or which will be in force and effect on the Closing Date;

 

(f)          Violations
of laws, regulations, ordinances, orders or requirements, if any, noted or issued by any governmental or municipal department or
authority having jurisdiction over the Option Subject Premises, including, but not limited to, sidewalk notices and violations,
elevator violations, boiler violations, fire violations, environmental violations, sanitary violations and other building violations,
and any conditions constituting such violations, although not so noted or issued (“Violations”), provided that
Grantor shall (i) pay at Closing such amounts required to satisfy all of the foregoing including, without limitation, any interest
and penalties thereon to the extent any of the foregoing shall then be a lien or shall be in a determined monetary amount and (ii)
discharge, prior to Closing, all liens relating to Violations (or Owner may escrow sufficient funds with the Title Company such
that any exception for such liens is omitted from the Optionee’s title insurance policy in respect of the Option Subject
Premises (the “Optionee’s Title Policy”)); provided further that nothing contained herein shall be deemed
to limit or affect Owner’s representations and warranties and covenants specifically set forth in this Agreement or the Purchase
and Sale Agreement, if any;

 

(g)          Unpaid
installments of assessments not due and payable on or before the Closing Date;

 

(h)          Any
lien or encumbrance (including, without limitation, any mechanics’ and materialmen’s lien) the removal of which is
the obligation of a commercial tenant pursuant to its Lease (a “Tenant’s Mechanic’s Lien”);

 

(i)          The
temporary certificate of occupancy (the “TCO”) issued to the Option Subject Premises provided same complies
with the requirements of Exhibit “L” hereto;

 

(j)          The
matters described in Exhibit “D” attached hereto and made a part hereof; and

 

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(k)          The
exceptions to the form of title policy or “marked-up” title commitment employed by the Title Company (as hereinafter
defined) set forth on Schedule B of such form of title policy or “marked-up” title commitment attached hereto as Exhibit
“I” and made a part hereof.

 

Title to the
Option Subject Premises shall be such as will be insured by Fidelity National Title Insurance Company (the “Title Company”)
pursuant to the standard stipulations and conditions of the most current standard ALTA form of Owner’s Title Insurance Policy
in use in the State of New York, subject only to the Permitted Encumbrances. In the event the Title Company selected by Optionee
pursuant to the first sentence of this Section 4.1 fails or refuses to insure title for any reason or no reason, Optionee
or Grantor (in the event that Optionee fails to exercise its right to substitute) may substitute First American Title Insurance
Company, Stewart Title Insurance Company, or Chicago Title Insurance Company, in which event such substitute title company shall,
for purposes of this Agreement, be the Title Company.

 

4.2           [Intentionally
omitted].

 

4.3           Prior
to the Closing, Optionee may obtain an update of the Title Company’s commitment to insure the Optionee’s title to the
Option Subject Premises subject only to those matters set forth in Section 4.1 of this Agreement (the “Commitment”)
and a further update of the Survey (and shall reasonably promptly after receipt forward such update, or cause such updated Commitment
and/or Survey to be forwarded, to Owner’s counsel). Within five (5) business days after receipt of any such update, and in
any event prior to the Closing Date, Optionee shall provide written notice to Owner of any exception to title or Survey item in
such update that is first appearing which is not a Permitted Encumbrance, and to which Optionee objects as permitted in accordance
with the terms of this Agreement. Any timely objection Optionee makes to any updated Commitment or Survey which is not a Permitted
Encumbrance is deemed a “Title Objection”. Within five (5) business days after Optionee notifies Owner of a
given Title Objection, Owner shall advise Optionee in writing whether or not Owner intends to cure such Title Objection; provided,
however, Owner shall be obligated in any event to cure any and all Mandatory Liens. In the event Owner notifies Optionee that Owner
does not intend to cure such Title Objection (other than a Mandatory Lien), Optionee shall have the right, as its sole remedy,
to be exercised within five (5) business days after receipt of such notice from Owner (time being of the essence), to terminate
this Agreement by written notice to Owner and receive the Option Deposit, and thereafter neither party shall have any rights or
obligations hereunder other than those rights and obligations expressly stated herein to survive the termination of this Agreement.
If Optionee does not so elect in writing to terminate this Agreement, then Optionee shall remain obligated hereunder and shall
accept title to the Option Property subject to such Title Objection (which shall be deemed a Permitted Encumbrance). In the event
Owner is unable to eliminate any Title Objection by the Closing Date, unless the same is waived by Optionee in writing, Owner may
adjourn the Closing Date for a reasonable period or periods not to exceed thirty (30) days in the aggregate (the “Title
Cure Period”), in order to attempt to eliminate such exception. Subject to Owner’s adjournment right above, Owner
shall at its expense cause any matter which is the subject of a Mandatory Lien to be bonded or otherwise discharged of record by
the Closing. “Mandatory Liens” shall mean the following: (i) all mortgages recorded against or otherwise secured
by the Option Property and related UCC filings and assignments of leases and rents and other evidence of indebtedness secured by
the Option Property; (ii) liens or encumbrances voluntarily created or permitted by Owner or its affiliates; (iii) judgments against
Owner and/or any encumbrance or matter to the extent any of them shall then be a lien and shall be in a determined monetary amount;
and (iv) mechanics’, materialmans’ and other similar statutory liens (excluding any Tenant’s Mechanic’s
Lien), subject to Section 4.9.

 

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4.4           Subject
to Owner’s obligations in respect of Mandatory Liens, if Owner does not eliminate any objection to title that is not a Permitted
Encumbrance, then Optionee shall have the right to either (i) terminate this Agreement, in which event the Option Deposit,
and all interest accrued thereon, shall be returned to Optionee; or (ii) waive the objection to title and close the purchase of
the Option Property; provided that in the case of any Mandatory Liens that are not cured by Closing, Optionee shall also have the
options to close the purchase of the Option Property and have the Purchase Price reduced by such amount required to satisfy the
Mandatory Liens, including any interest and penalties thereon or obtain specific performance with respect thereto.

 

4.5           If
Owner shall adjourn the Closing Date in accordance with Section 4.3 in order to cure Optionee’s Title Objections,
Owner shall, upon the satisfactory cure thereof, promptly reschedule the Closing Date upon written notice to Optionee to a date
that occurs five (5) business days after notice to Optionee (the “New Closing Notice”) (which New Closing Notice
shall be provided to Optionee within two (2) business days after Owner cures the title objection in question).

 

4.6           Each
party shall deliver or cause to be delivered to the other party or to the Title Company such duly executed and acknowledged or
verified certificates and other instruments respecting its power and authority to perform the obligations hereunder, the due authorization
thereof by appropriate proceedings and the authority of the officer or other representatives acting for it at the Closing, as counsel
for the Title Company may reasonably request.

 

4.7           Unpaid
franchise taxes of any corporation in the chain of title shall not constitute an objection to title, provided, that at Closing,
(i) Grantor makes such deposit or guarantee as might be reasonably required by the Title Company, (ii) the policy of title insurance
issued by the Title Company insures against the collection thereof out of the Option Subject Premises and (iii) such franchise
taxes are omitted from Optionee’s lender’s title policy.

 

4.8           The
amount of any unpaid taxes, assessments and water and sewer charges which Grantor is obligated to pay and discharge, with interest
and penalties, may at the option of Grantor be allowed to Optionee out of the balance of the Purchase Price, if official bills
therefor with interest and penalties thereon figured to such date as is required by the Title Company are furnished to or obtained
by the Title Company at the Closing for payment thereof and the Title Company omits same from the Optionee’s Title Policy.

 

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4.9           Anything
in this Agreement to the contrary notwithstanding, if the examination of title shall reveal a mechanic’s lien against the
Option Subject Premises, same shall not constitute an objection to title, provided, that at Closing, Grantor, in its sole and absolute
discretion, either (i) makes such deposit as might be reasonably required by the Title Company with respect to liens the aggregate
amount of which is no greater than five hundred thousand dollars ($500,000) or (ii) posts a bond discharging such mechanic’s
lien but in both cases, provided, further that all such liens are omitted from the policy of title insurance issued by the Title
Company in favor of Optionee in respect of the Option Subject Premises.

 

5.          REPRESENTATIONS,
WARRANTIES, COVENANTS, CONDITIONS AND AGREEMENTS OF OWNER.

 

5.1           Owner
represents, warrants and covenants to Optionee as of the date hereof and, subject to the provisions of Section 1.1 relating
to Updated Exhibits and Schedules, as of the date of the Option Exercise Notice:

 

(a)          Good
Standing. Each entity comprising Owner is duly organized and validly existing under the laws of the state in which they are
formed. The execution, delivery and performance of this Agreement on behalf of Owner have been duly authorized and Owner has obtained
all approvals, consents, orders or authorizations required in connection with the execution and delivery of and compliance with
this Agreement by Owner. Owner is the record owner of the Option Subject Premises.

 

(b)          Condemnation.
Owner has not received notice of any pending or proposed condemnation or taking of the Option Subject Premises or any portion thereof.

 

(c)          Due
Authorization. Each entity comprising Owner has the requisite power and authority to enter into and to perform the terms of
this Agreement. Each entity comprising Owner is not subject to any law, order, decree, restriction, or agreement which prohibits
or would be violated by this Agreement or the consummation of the transactions contemplated hereby. The execution and delivery
of this Agreement and the consummation of the transactions contemplated hereby have been duly authorized by all requisite action
of each entity comprising Owner. This Agreement constitutes, and each document and instrument contemplated hereby to be executed
and delivered by each entity comprising Owner, when executed and delivered, shall constitute the legal, valid and binding obligation
of each entity comprising Owner enforceable against each entity comprising Owner in accordance with its respective terms.

 

(d)          No
Violations. Neither the execution, delivery and performance of this Agreement nor the consummation of the transactions contemplated
hereby is prohibited by, or requires any entity comprising Owner to obtain any consent, authorization, approval or registration
under any law, statute, rule, regulation, judgment, order, writ, injunction or decree which is binding upon any entity comprising
Owner.

 

    	 	11	 

     

    

 

(e)          Non-Foreign
Status. Owner is not a “foreign person” as defined in the United States Foreign Investment in Real Property Tax
Act of 1980 and the Internal Revenue Code of 1986, as amended.

 

(f)          Litigation.
There is no action, suit, proceeding or claim (any of the foregoing, an “Action”) affecting Owner or the
Option Property or any portion thereof, including, without limitation, any Action affecting Owner and relating to the ownership,
construction, operation, use or occupancy of the Option Property for its intended purpose which is pending or being prosecuted
in any court or by or before any federal, state, county or municipal department, commission, board, bureau or agency or other governmental
entity, or to the knowledge of Owner, has any such Action been threatened or asserted, other than claims (1) for personal injury,
property damage or worker’s compensation, for which the insurance carrier has not disclaimed liability and in which the amounts
claimed do not exceed the applicable insurance policy limits, or (2) in respect of landlord-tenant proceedings, for non-payment
of rent.

 

(g)          Service
Agreements. Exhibit “E” attached hereto includes a true, correct and complete list of all Service Agreements,
each of which, to Owner’s knowledge, is in full force and effect. Neither Owner nor, to Owner’s knowledge, any other
party is in default in any material respect under the terms of any Service Agreements. True and complete copies of the Service
Agreements have been provided to Optionee.

 

(h)          Personal
and Intangible Property. Attached hereto as Exhibit “F” is a true, correct and complete list of all Personal
Property either currently on the Option Subject Premises or expected to be on the Option Subject Premises. Owner has good title
to all such Personal Property subject to no liens or encumbrances.

 

(i)          OFAC.
Neither Owner nor any of its affiliates nor, to Owner’s knowledge, any of its agents acting in any capacity in connection
with the transactions contemplated hereby, is a person and/or entity with whom Optionee is restricted from doing business under
the Internal Emergency Economic Powers Act, 50 U.S.C. Section 1701 et seq.; the Trading With The Enemy Act, 50 U.S.C. App. Section
5; the U.S.A. Patriot Act of 2001, U.S. Treasury Department’s OFAC list of prohibited countries, territories, “specifically
designated nationals” or “blocked person”; any executive orders promulgated under any of the foregoing, any implementing
regulations promulgated thereunder by the U.S. Department of Treasury Office of Foreign Assets Control (“OFAC”)
(including those persons and/or entities named on OFAC’s List of Specially Designated Nationals and Blocked Persons); or
any other applicable executive order, law of the United States of America or any regulations, list or the like promulgated thereunder
or relating thereto.

 

    	 	12	 

     

    

 

(j)          Employees;
Collective Bargaining Agreements. Neither Owner nor any affiliate of Owner has any employees employed at or with respect to
the Option Property which will become the obligation of Optionee after the Closing Date, subject to the terms of Section 7.1(d).
There is no collective bargaining agreement or other union agreement with respect to the Option Property.

 

(k)          ERISA.
Owner is not, and is not acting on behalf of (i) an “employee benefit plan” as defined in Section 3(3) of ERISA, that
is subject to Title I of ERISA, (ii) a “plan” as defined in and subject to Section 4975 of the Internal Revenue Code,
or (iii) an entity deemed to hold “plan asset” of any of the foregoing within the meaning of 29 C.F.R. Section 2510.3
101, as modified by Section 3(42) of ERISA. None of the transactions contemplated by this Agreement are in violation of any state
statutes applicable to Owner regulating investments of, and fiduciary obligations with respect to, governmental plans similar to
the provisions of Section 406 of ERISA or Section 4975 of the Internal Revenue Code.

 

(l)          Options.
No party other than Optionee has any option, right of first offer or right of first refusal to purchase or lease any portion of
the Option Property.

 

(m)          Leases.
Exhibit “J” includes a true, correct and complete list of all Leases, including a rent roll (the “Rent
Roll”) that sets forth (i) the name of each tenant occupying a unit at the Option Subject Premises pursuant to a Lease,
(ii) the address or unit number of the unit leased by such tenant, (iii) the commencement and expiration dates of such Lease, (iv)
the monthly rental payable under such Lease, and (v) the amount of any security deposit and other deposits, if any, paid by such
tenant, and a report detailing the current payment status, arrearages and charges applicable to each such Lease. There are no other
Leases, licenses or other occupancy agreements of all or any portion of the Option Subject Premises other than the Lease set forth
on Exhibit “J”, true and complete copies of each such Lease (including, without limitation all amendments, supplements
or other modifications thereto) have been provided or made available to Optionee, and each such Lease (including, without limitation
all amendments, supplements or other modifications thereto) is in full force and effect. As of Closing, there will be no such Leases,
licenses or other occupancy agreements except for the Leases entered into pursuant to Section 7.1(a). Owner has not received
or delivered any written notices from or to any of the tenants under the Leases asserting that either Owner or any such tenant,
respectively, is in default under any of the respective Leases (other than defaults that have been cured) and Owner is not aware
of any such default (other than de minimis defaults in the ordinary course). Other than as set forth on the Rent Roll, no rent
under any Lease has been paid more than one (1) month in advance of its due date. No leasing or brokerage agreement with respect
to the Option Subject Premises will be binding on Optionee other than that certain agreement between Owner (or its predecessor
in interest) and Citi Habitats (to the extent of obligations of the owner of the Option Property first arising after the Closing).

 

    	 	13	 

     

    

 

(n)          Bankruptcy.
Owner is not the subject debtor under any federal, state or local bankruptcy or insolvency proceeding, or any other proceeding
for dissolution, liquidation or winding up of its assets.

 

(o)          421-a
Certificate of Eligibility. Owner has delivered to Optionee a copy of the Preliminary Certificate of Eligibility for Partial
Tax Exemption for the Option Property. Owner is complying with all requirements, including, without limitation, filing the final
application for the Final Certificate of Eligibility for Partial Tax Exemption, together with supporting documentation.

 

5.2           Covenants
of Owner.

 

(a)          Service
Contracts. Owner will not enter into any new Service Agreement that is not terminable by Owner, its successors and assignees,
for any reason or no reason, upon no more than thirty (30) days’ written notice to the applicable counterparty under such
Service Agreement without fee or penalty.

 

(b)          Exclusivity.
Owner agrees that from and after the Option Effective Date and until the Closing or earlier termination of this Agreement as provided
herein, neither Owner nor its affiliates shall (or shall cause any third party acting on behalf of Owner or its affiliates to):
(i) prepare, submit for review or enter into any term sheet, offer letter, letter of intent or other agreement concerning the option,
sale or other disposition of the Option Property or any other direct or indirect interest in the Option Property, including any
so-called contingent or back-up agreements, (ii) solicit any offers concerning the option, sale or other disposition of the Option
Property or any other direct or indirect interest in the Option Property, or (iii) otherwise market the sale of the Option Property
or any other direct or indirect interest in the Option Property.

 

5.3           As
used in this Agreement, the terms “Owner’s knowledge” or “knowledge of Owner” means
the actual knowledge (without independent inquiry or investigation) of Omri Sachs, Dvir Cohen Hoshen and/or Ron Vaksin and shall
not be construed to refer to the knowledge of any other employee, officer, director, member, manager or agent of Owner or any affiliate
of Owner, and shall in no event be deemed to include imputed or constructive knowledge.

 

    	 	14	 

     

    

 

5.4           Changes
in Conditions. If, prior to the Closing Date, Owner or Optionee discovers a “material breach” (as hereafter defined)
of any of Owner’s representations or warranties in Section 5.1 hereof, the party making the discovery shall deliver
written notice to the other party of the breach and Owner will have the right to either cure the untrue representation or warranty
or not to cure such breach. Owner shall have ten (10) days after notice of the breach was given in which to give notice to Optionee
of the election by Owner to cure or not cure the untrue representation or warranty. Failure of Owner to timely make an election
to cure will be deemed an election not to cure. If Owner elects, or is deemed to have elected, not to cure such breach (or if such
breach is not curable), Optionee will have the right, as its sole and exclusive remedy, to: (i) terminate this Agreement without
any right or claim to damages and the Option Deposit shall be returned to Optionee; or (ii) waive the breach and, subject
to the other terms and conditions of this Agreement, consummate the purchase of the Option Property without a reduction in the
Purchase Price. Optionee’s election between (i) and (ii), above, must be made within ten (10) business days after the
receipt of Owner’s notice or deemed notice not to cure such breach, and Optionee’s failure to timely make an election
shall constitute Optionee’s deemed termination of this Agreement. For the purposes of this Section 5.4, a “material
breach” shall be a breach of Owner’s representations and warranties in Section 5.1 hereof which, individually
or when taken together with all other breaches of Owner’s representations and warranties, may reasonably cost $100,000.00
or more in the aggregate to cure or correct or may reasonably result in $100,000.00 or more in damages to Optionee. Notwithstanding
anything to the contrary contained herein or in the Purchase and Sale Agreement, in no event shall Owner be liable to Optionee
for, or be deemed to be in default hereunder by reason of, any breach of representation or warranty set forth in Section 5.1
which results from any change that occurs after the date hereof and results from an act or an omission that is permitted under
the terms of this Agreement (e.g., entering into a new Commercial Lease in accordance with the provisions of Section 7.1(a)
hereof), so long as such act or omission is taken in accordance with the terms of this Agreement.

 

6.          REPRESENTATIONS,
WARRANTIES AND AGREEMENTS OF OPTIONEE. Optionee represents and warrants to Owner as of the date hereof:

 

6.1           The
Optionee has the requisite power and authority to enter into and to perform the terms of this Agreement. Optionee is not subject
to any law, order, decree, restriction, or agreement which prohibits or would be violated by this Agreement or the consummation
of the transactions contemplated hereby. The execution and delivery of this Agreement and the consummation of the transactions
contemplated hereby have been duly authorized by all requisite action of Optionee. This Agreement constitutes, and each document
and instrument contemplated hereby to be executed and delivered by Optionee, when executed and delivered, shall constitute the
legal, valid and binding obligation of Optionee enforceable against Optionee in accordance with its respective terms.

 

6.2           Neither
the execution, delivery and performance of this Agreement nor the consummation of the transactions contemplated hereby is prohibited
by, or requires Optionee to obtain any consent, authorization, approval or registration under any law, statute, rule, regulation,
judgment, order, writ, injunction or decree which is binding upon Optionee.

 

6.3           There
are no judgments, orders, or decrees of any kind against Optionee unpaid or unsatisfied of record, nor any actions, suits or other
legal or administrative proceedings pending or, to Optionee's actual knowledge, threatened in writing against Optionee, which would
have any material adverse effect on the ability of Optionee to consummate the transactions contemplated by this Agreement.

 

    	 	15	 

     

    

 

6.4           Optionee
is not a person and/or entity with whom Owner is restricted from doing business under the Internal Emergency Economic Powers Act,
50 U.S.C. Section 1701 et seq.; the Trading With The Enemy Act, 50 U.S.C. App. Section 5; the U.S.A. Patriot Act of 2001; any executive
orders promulgated thereunder, any implementing regulations promulgated thereunder by OFAC (including those persons and/or entities
named on OFAC’s List of Specially Designated Nationals and Blocked Persons); or any other applicable law of the United States
of America.

 

6.5           THE
OPTIONEE ACKNOWLEDGES THAT, EXCEPT AS SPECIFICALLY PROVIDED FOR HEREIN OR IN THE PURCHASE AND SALE AGREEMENT, OWNER HAS MADE NO
REPRESENTATIONS OR WARRANTIES, IS UNWILLING TO MAKE ANY REPRESENTATIONS, AND HELD OUT NO INDUCEMENTS TO THE OPTIONEE, OTHER THAN
THOSE HEREIN EXPRESSED. WITHOUT LIMITING THE GENERALITY OF THE FOREGOING, OPTIONEE HAS NOT RELIED ON ANY REPRESENTATIONS OR WARRANTIES,
AND OWNER HAS NOT MADE ANY REPRESENTATIONS OR WARRANTIES IN EITHER CASE EXPRESS OR IMPLIED, EXCEPT AS HEREIN EXPRESSLY PROVIDED,
AS TO (I) THE CURRENT OR FUTURE REAL ESTATE TAX LIABILITY, ASSESSMENT OR VALUATION OF THE OPTION SUBJECT PREMISES; (II) THE POTENTIAL
QUALIFICATION OF THE OPTION SUBJECT PREMISES FOR ANY AND ALL BENEFITS CONFERRED BY FEDERAL, STATE OR MUNICIPAL LAWS, WHETHER FOR
SUBSIDIES, SPECIAL REAL ESTATE TAX TREATMENT, INCLUDING, WITHOUT LIMITATION, PURSUANT TO THE §421-A TAX EXEMPTION PROGRAM,
INSURANCE, MORTGAGES, OR ANY OTHER BENEFITS, WHETHER SIMILAR OR DISSIMILAR TO THOSE ENUMERATED; (III) THE COMPLIANCE OF THE OPTION
SUBJECT PREMISES, IN ITS CURRENT OR ANY FUTURE STATE WITH APPLICABLE ZONING ORDINANCES AND THE ABILITY TO OBTAIN A VARIANCE IN
RESPECT OF THE OPTION SUBJECT PREMISES’ NONCOMPLIANCE, IF ANY, WITH SAID ZONING ORDINANCES; (IV) THE AVAILABILITY OF ANY
REFINANCING FOR THE PURCHASE, ALTERATION, REHABILITATION OR OPERATION OF THE OPTION SUBJECT PREMISES FROM ANY SOURCE, INCLUDING
BUT NOT LIMITED TO STATE, CITY OR FEDERAL GOVERNMENT OR ANY INSTITUTIONAL LENDER; (V) THE CURRENT OR FUTURE USE OF THE OPTION SUBJECT
PREMISES; (VI) THE PRESENT AND FUTURE CONDITION AND OPERATING STATE OF ANY AND ALL MACHINERY OR EQUIPMENT ON THE OPTION SUBJECT
PREMISES EXCEPT AS HEREIN SET FORTH, AND THE PRESENT OR FUTURE STRUCTURAL AND PHYSICAL CONDITION OF THE BUILDING OR ITS SUITABILITY
FOR REHABILITATION OR RENOVATION; (VII) THE PRESENCE OR ABSENCE OF ANY RULES OR NOTICES OF VIOLATIONS OF LAW ISSUED BY ANY GOVERNMENTAL
AUTHORITY; (VIII) THE LAYOUT, LEASES, RENTS, INCOME, EXPENSES OR OPERATION OF THE OPTION SUBJECT PREMISES; (IX) COMPLIANCE OR NONCOMPLIANCE
WITH ANY APPLICABLE RENT LAWS, REGULATIONS OR GUIDELINES; AND IS THOROUGHLY ACQUAINTED WITH THEIR CONDITION AND AGREES TO PURCHASE
THEM (IF THE OPTION IS EXERCISED) IN THE CONDITION REQUIRED UNDER THE PURCHASE AND SALE AGREEMENT. THE OWNER IS NOT LIABLE OR BOUND
IN ANY MANNER BY ANY VERBAL OR WRITTEN STATEMENTS, PERTAINING TO THE OPTION SUBJECT PREMISES OR THE OPERATION, LAYOUT, EXPENSES,
CONDITION, INCOME, LEASES OR RENTS FURNISHED BY ANY REAL ESTATE BROKER, AGENT, EMPLOYEE, OR OTHER PERSON, UNLESS THE SAME ARE SPECIFICALLY
SET FORTH HEREIN.

 

    	 	16	 

     

    

 

7.          OPERATIONS
PENDING EXECUTION OF PURCHASE AND SALE AGREEMENT.

 

7.1           Owner
agrees that between the date hereof and the full execution and delivery of the Purchase and Sale Agreement:

 

(a)          Except
as expressly set forth in this Section 7.1(a), Owner shall not enter into or extend, renew, replace, otherwise modify, terminate
or cancel any Lease or any license or other occupancy agreement. Owner shall use commercially reasonable efforts to lease the residential,
retail and community facility units in the Building (Leases of retail space and Leases of community facility space are collectively
referred to as “Commercial Leases”), which Leases may be entered into by Owner on the following terms and conditions
(collectively, the “Leasing Guidelines”): (i) for each residential Lease, (A) the form of residential lease
attached hereto as Exhibit “G” shall be utilized; (B) the Lease shall be for either a one (1) or two (2) year
term; (C) the tenant shall be a third-party tenant that shall have a credit score of no less than 650 or, alternatively, the obligations
of such tenant shall be guaranteed by another individual with a credit score of at least 650; (D) the proposed tenant has no negative
record in housing court and has not filed any complaints with the Division of Housing and Community Renewal of New York City; (E)
the monthly rental for each residential unit shall not be less than the amount listed on Exhibit H annexed hereto (the “Rent
Minimum”) for such apartment; and (F) the first month’s rent and security deposit shall be paid in advance and
(ii) for each Commercial Lease, the tenant, and the form and substance of the Lease, shall be, in all respects, subject to Optionee’s
prior written consent. In connection with such residential Leases, Owner may, at its sole cost and expense, entice incoming tenants
by offering them various incentives (including, without limitation, the option to move in three (3) days prior to lease commencement),
provided, however, that (A) Owner may grant up to a one (1) month rent concession for each residential Lease without Optionee’s
prior written consent, so long as any such rent concession shall be applied to the first month of the term of such residential
Lease, and (B) any other incentives shall either be approved by Optionee in writing or set forth on Exhibit “K” hereto.
Owner shall be responsible for all leasing costs (including, without limitation, brokerage commissions, tenant concessions and
attorneys’ fees) incurred in connection with each Lease. Owner shall not apply any security deposit under any Lease other
than in accordance with the provisions of such Lease and all applicable laws in connection with a default by such tenant beyond
any applicable notice and grace period. Owner will deliver to Optionee a weekly leasing report listing all new Leases for the Option
Property, together with copies of all Leases executed to date by Owner, which have not heretofore been delivered to Optionee. Owner
shall not permit any tenant under any Lease to assign its Lease or to perform any material alterations without the prior consent
of Optionee (unless Owner’s consent therefor is not required by the terms of such Lease).

 

    	 	17	 

     

    

 

(b)          Owner
shall maintain in full force and effect all liability and casualty insurance policies (“Insurance Policies”)
which are currently in effect (or replace same with comparable policies) for the Option Subject Premises. Owner hereby agrees that
the Insurance Policies shall include full replacement cost coverage with respect to the Option Subject Premises. True and correct
certificates evidencing Owner’s existing Insurance Policies have been delivered to Optionee.

 

(c)          No
Personal Property included in this Agreement shall be removed from the Option Subject Premises unless the same are replaced with
similar items of at least equal quality prior to the Closing.

 

(d)          Owner
shall be responsible to deliver the Option Subject Premises to Optionee at the Closing without any employees and free and clear
of any claims of any parties with respect to employment at the Option Subject Premises; provided, however, that (i)
the occupancy of unit “2 I” of the Option Subject Premises pursuant to a license agreement which has been approved
by Optionee by the superintendent of the Option Subject Premises shall not be a breach of the foregoing covenant and (ii) the employment
agreement for the superintendent, if any, is approved by Optionee in advance in writing.

 

(e)          Owner
shall diligently pursue, at Owner’s sole cost and expense, receipt of the TCO prior to Closing. Owner agrees to cause the
TCO to be issued by the New York City Department of Buildings prior to Closing and thereafter timely renewed from the date hereof
through Closing so that at all times after issuance of the TCO and prior to issuance of the PCO, the TCO shall remain in full force
and effect.

 

7.2           Construction
Warranties. Owner shall assign all third party warranties, guaranties and indemnities to Optionee at Closing to the extent
that the foregoing are assignable pursuant to documentation reasonably acceptable to Optionee; provided that if any such
warranty, guaranty or indemnity shall not be assignable to Optionee, then, at Optionee’s request, Owner shall use commercially
reasonable efforts to enforce such warranty, guaranty or indemnity for the benefit of Optionee and in accordance with Optionee’s
reasonable written directions. The provisions of this Section 7.2 shall survive the Closing.

 

8.          OPTIONEE’S
FINANCING. Notwithstanding that there is no financing contingency, at Optionee’s request, Owner agrees to reasonably
cooperate with Optionee in order to enable Optionee to consummate an assignment of the existing mortgages on the Option Subject
Premises to Optionee’s lender, provided such assignment shall not be a condition of Closing. If such assignment shall be
consummated, Optionee shall pay the reasonable out-of-pocket legal fees due to Owner’s existing mortgagee solely in respect
of such assignment (but shall not be required to pay any other amounts in connection with such assignment).

 

    	 	18	 

     

    

 

9.          NOTICES.
All written notices and other communications (collectively, “Notices”) provided for or contemplated by this
Agreement shall be addressed to (a) the party to whom such Notice is directed at the address hereinafter specified, unless written
Notice of a change of address shall have been furnished to the other party and (b) to such party’s attorney at the address
hereinafter specified for such attorney. All Notices shall be in writing and sent by (i) by hand or overnight courier (e.g., Federal
Express or United Parcel Service), or (ii) by electronic mail portable document format (“PDF”). For purposes
of this Section 9, the addresses of the parties for all Notices are as follows (unless changed by similar Notice in writing
given by the particular person whose address is to be changed):

 

	 	To Grantor:	 
	 	 	 
	 	470 4th Avenue Investors LLC	 
	 	c/o Adam America Real Estate	 
	 	850 Third Avenue, Suite 13D	 
	 	New York, New York 10022	 
	 	Attn: Omri Sachs	 
	 	Email: omri@adamamericare.com	 

 

	 	With a copy to:	 
	 	 	 
	 	Westerman Ball Ederer Miller Zucker & Sharfstein, LLP	 
	 	1201 RXR Plaza	 
	 	Uniondale, New York 11556	 
	 	Attn: Jay H. Levinton, Esq. 	 
	 	Email: jlevinton@westermanllp.com	 

 

	 	To Optionee:	 
	 	 	 
	 	470 4th Avenue Fee Owner, LLC	 
	 	c/o Trinity Place Holdings Inc.	 
	 	717 5th Avenue, Suite 1303	 
	 	New York, New York 10022	 
	 	Attn: Steven Kahn, CFO	 
	 	Email: Steven.kahn@tphs.com	 

 

	 	With a copy to:	 
	 	 	 
	 	Kramer Levin Naftalis & Frankel LLP	 
	 	1177 Avenue of the Americas	 
	 	New York, New York 10036	 
	 	Attn: James P. Godman, Esq.	 
	 	Email: jgodman@kramerlevin.com	 

 

    	 	19	 

     

    

 

	 	To Escrow Agent:	 
	 	 	 
	 	Fidelity National Title Insurance Company	 
	 	485 Lexington Avenue, 18th Floor	 
	 	New York, New York 10017	 
	 	Attn: John Tonelli	 
	 	Email: JTonelli@fnf.com	 

 

Any Notice may be given
on behalf of any party by its counsel. Notices shall be deemed sufficiently served or given for all purposes under this Agreement,
(i) in the case of hand delivery, upon the earliest of actual receipt or refusal by the addressee; (ii) in the case of overnight
courier service, one (1) business day after delivered to the nationally recognized overnight courier service; or (iii) in the case
of a PDF Notice, on the date of transmission if received by 5:00 p.m. of the recipient’s business day (otherwise it shall
be deemed received on the next business day), provided that a hard copy of such PDF Notice is also delivered by hand delivery or
overnight courier as provided in clause (i) or (ii) above.

 

10.         DEFAULT;
REMEDIES.

 

10.1         Optionee's
Remedies. Except as otherwise specifically provided in this Agreement, in the event that: (A) (1) Owner fails or
refuses to comply with any of Owner’s obligations hereunder, or (2) there is a material breach of any representation(s)
or warranty(ies) by Owner or failure of any condition precedent to Optionee’s obligations hereunder; and (B) Optionee
is not in default of its material obligations hereunder, then Optionee may elect one of the following options to be exercised by
or on behalf of Optionee, as Optionee's sole and exclusive remedy, and subject to the qualifications hereinafter set forth:

 

(a)          to
terminate this Agreement by giving Owner written notice of such election; or

 

(b)          to
waive, prior to or at the Closing and after any cure period, the applicable objection or condition and proceed to close the transaction
contemplated hereby in accordance with the remaining terms hereof; or

 

(c)          in
the event of a failure or refusal by Owner to comply with any of Owner’s obligations hereunder, to seek to enforce specific
performance by Owner of its obligations under this Agreement and the Purchase and Sale Agreement.

 

10.2         In
the event of a termination of this Agreement by Optionee under Section 10.1(a), then (i) the Option Deposit shall
be returned to Optionee; and (ii) Owner and Optionee shall be released and relieved of further obligations, liabilities or
claims hereunder except as herein otherwise expressly specified. Any action for specific performance pursuant to the provisions
of Section 10.1(c) must be instituted by Optionee, if at all, within sixty (60) days after the later to occur of (x) the
date upon which Optionee has actual knowledge that the default has occurred or (y) the Scheduled Closing Date, and (ii) if
such action is not so instituted by Optionee within such period of time, then Optionee shall be deemed conclusively to have waived
the right to institute such action and to have elected to terminate this Agreement as provided above.

 

    	 	20	 

     

    

 

10.3         Owner's
Remedies. If Optionee fails to exercise the Option pursuant to this Agreement for any reason other than the failure of any
condition precedent to Optionee’s obligation to exercise the Option, or Owner’s default or termination of this Agreement
by Optionee or Owner pursuant to a right to do so under the provisions of this Agreement, then the Option Deposit shall be paid
to Owner as liquidated damages (which shall be Owner’s sole and exclusive remedy against Optionee in tort or contract, and
in law or equity), it being agreed between the parties hereto that the actual damages to Owner in such event are impractical to
ascertain and the amount of the Option Deposit is a fair and reasonable estimate thereof and shall be and constitute valid liquidated
damages, not a forfeiture or penalty, at which time this Agreement shall be null and void and neither party shall have any rights
or obligations under this Agreement. WITHOUT LIMITATION OF THE FOREGOING, OWNER WAIVES ANY RIGHT THAT IT MAY HAVE UNDER RELEVANT
STATUTORY LAW TO SEEK SPECIFIC PERFORMANCE OR ANY OTHER REMEDY IN LAW OR EQUITY OTHER THAN RECEIPT OF THE OPTION DEPOSIT.

 

10.4         Intentionally
Omitted.

 

11.         ESCROW.

 

11.1         The
Option Deposit shall be held in escrow by Escrow Agent. Escrow Agent is hereby appointed as Escrow Agent to hold and distribute
the Option Deposit in accordance with the terms hereof and Escrow Agent hereby acknowledges receipt of the Option Deposit and agrees
to act in such capacity.

 

11.2         The
Option Deposit shall be held in an interest bearing account and interest shall be added to and become part of the Option Deposit,
and shall be paid to the party entitled to the Option Deposit (with interest credited to the Purchase Price).

 

11.3         Escrow
Agent will deliver the Option Deposit to Optionee or Owner, as the case may be, upon the following terms and conditions:

 

(a)          To
Owner upon the consummation of the Closing contemplated under the Purchase and Sale Agreement, or

 

(b)          To
Owner, upon receipt of a written notice from Owner, stating that Owner is entitled under this Agreement to the Option Deposit and
demanding payment of the same; provided, however, that Escrow Agent will not honor such demand until not less than ten (10) days
after the date on which Escrow Agent shall have delivered a copy of such notice and demand to Optionee, nor thereafter, if during
such ten (10) day period, Escrow Agent shall have received written notice of objection from Optionee in accordance with the terms
set forth below, or

 

    	 	21	 

     

    

 

(c)          Optionee,
upon receipt of a written notice from Optionee, stating that Optionee is entitled under this Agreement to the return of the Option
Deposit and demanding return of the same; provided, however, that Escrow Agent will not honor such demand until not less than ten
(10) days after the date on which Escrow Agent shall have delivered a copy of such notice and demand to Owner, nor thereafter,
if during such ten (10) day period, Escrow Agent shall have received written notice of objection from Owner in accordance with
the terms set forth below.

 

11.4         Upon
receipt of a written demand for the Option Deposit pursuant to the provisions of Section 11.3(b) or 11.3(c) above,
Escrow Agent shall promptly deliver a copy thereof to the other party. The other party shall have the right to object to the delivery
of the Option Deposit by delivery to and receipt by Escrow Agent of written notice of objection within ten (10) days after the
delivery by Escrow Agent of such copy to the other party, but not thereafter. Upon receipt of such notice of objection, Escrow
Agent shall promptly deliver a copy thereof to the party who made the written demand.

 

11.5         If
Escrow Agent shall have received a notice of objection as provided above, within the time therein prescribed, or any disagreement
or dispute shall arise between or among any of the parties hereto resulting in adverse claims and demands being made for the Option
Deposit whether or not litigation has been instituted, then Escrow Agent shall continue to hold the Option Deposit subject to such
adverse claims and Escrow Agent shall not be or become liable in any way or to any person for its refusal to comply with such claims
or demand, and (i) in the event of any joint written direction from Owner and Optionee, Escrow Agent shall then disburse the Option
Deposit in accordance with said direction, or (ii) in the event Escrow Agent shall receive a written notice advising that a litigation
over entitlement to the Option Deposit has been commenced, Escrow Agent may deposit the Option Deposit with the clerk of the court
in which said litigation is pending, or (iii) Escrow Agent may (but shall not be required to) take such affirmative steps as it
may, at its option, elect in order to substitute another impartial party reasonably acceptable to Owner and Optionee to hold the
Option Deposit in accordance with this Agreement subject to such adverse claims including the commencement of an action for interpleader
in a court of competent jurisdiction, the cost thereof to be borne by whichever of Owner and Optionee is the losing party, and
thereupon Escrow Agent shall be released of and from all liability hereunder. Owner and Optionee jointly and severally agree to
reimburse Escrow Agent for any and all expenses incurred in the discharge of its duties under this Article, including, without
limitation, reasonable attorneys’ fees (except to the extent resulting from Escrow Agent’s gross negligence or willful
misconduct). Nothing herein, however, shall affect the liability of a defaulting party to another party for reimbursement of any
amount paid to Escrow Agent under this Section 11.5.

 

11.6         It
is expressly understood that Escrow Agent acts hereunder as an accommodation to Owner and Optionee and as depository only and is
not responsible or liable in any manner whatever for the sufficiency, correctness, genuineness or validity of any instrument deposited
with it, or for the form or execution of such instruments or for the identity, authority or right of any person executing or depositing
the same, or for the terms and conditions of any instrument pursuant to which Escrow Agent or the parties may act. The Escrow Agent
shall have no liability other than for its gross negligence or willful misconduct and shall, in all instances, act in accordance
with the terms and provisions of this Agreement.

 

    	 	22	 

     

    

 

11.7         Escrow
Agent shall not have any duties or responsibilities except those set forth in this Agreement and shall not incur any liability
in acting upon any signature, notice, request, waiver, consent, receipt or other paper or document believed in good faith by Escrow
Agent to be genuine, and Escrow Agent, if acting in good faith, may assume that any person purporting to give it any notice on
behalf of any party in accordance with the provisions hereof has been duly authorized to do so.

 

11.8         In
the event of a dispute between the parties regarding the disposition of the Deposit, Escrow Agent shall take one of the actions
described in Section 11.5 above, and upon delivery of the Option Deposit in accordance therewith, Escrow Agent shall be
relieved of all liability, responsibility or obligation with respect to or arising out of the Option Deposit and any and all of
its obligations therefrom.

 

11.9         Escrow
Agent shall not be liable or responsible for any failure, refusal or inability of the depository bank to pay the Option Deposit
at Escrow Agent’s direction, or for levies by taxing authorities based upon the taxpayer identification number used to establish
the applicable money market account.

 

12.         MISCELLANEOUS
PROVISIONS.

 

12.1         This
Agreement together with the Purchase and Sale Agreement embodies and constitutes the entire understanding between the parties hereto
with respect to the transaction contemplated herein and therein, and all prior agreements, understandings, representations and
statements, oral or written, are merged into this Agreement and the Purchase and Sale Agreement. Neither this Agreement nor any
provision hereof may be waived, modified, amended, discharged, or terminated except by an instrument signed by the party against
whom the enforcement of such waiver, modification, amendment, discharge or termination is sought, and then only to the extent set
forth in such instrument.

 

12.2         This
Agreement shall be governed by, and construed in accordance with, the laws of the State of New York in all respects including the
validity, interpretation and performance thereof and without giving effect to principles of conflict of laws.

 

12.3         The
captions in this Agreement are inserted for convenience of reference only and in no way define, describe or limit the scope or
intent of this Agreement.

 

12.4         This
Agreement shall be binding upon and shall inure to the benefit of the successors and permitted assigns of the parties.

 

12.5         The
submission of this Agreement by Owner to Optionee shall in no manner bind Owner or Optionee nor shall the same constitute an offer
by Owner to Optionee. This Agreement shall be binding on the parties only when duly executed by Owner and Optionee and upon delivery
of a copy of such fully executed agreement to the parties.

 

12.6         Intentionally
Omitted.

 

    	 	23	 

     

    

 

12.7         The
parties agree that neither this Agreement nor the Purchase and Sale Agreement nor any memorandum or notice thereof shall be recorded
in any public record and that, unless otherwise agreed to by Owner or otherwise required by law, this Agreement, the Purchase and
Sale Agreement and the transaction contemplated herein shall be kept confidential by the parties, subject to Section 12.15.
Nothing contained herein shall affect or be deemed to affect Optionee’s right, if any, to file a lis pendens or notice of
pendency of action or similar notice against the Option Property in connection with an action for specific performance pursuant
hereto.

 

12.8         Any
time period provided herein which shall end on a Saturday, Sunday or legal holiday shall extend to 5:00 p.m. of the next full business
day.

 

12.9         This
Agreement may be executed in any number of counterparts and by facsimile or portable document format (PDF), each of which shall
be deemed an original and all of which constitute one and the same instrument.

 

12.10         In
no event may Optionee contact any tenants of the Option Subject Premises with respect to Optionee’s potential purchase of
the Option Subject Premises without Owner’s express written or oral consent.

 

12.11         Nothing
set forth in this Agreement regarding survival shall be deemed to limit either party’s rights against the other by reason
of the indemnity obligations of such party to the other set forth in this Agreement which this Agreement provides shall survive
the termination of this Agreement.

 

12.12         Optionee
may not assign this Agreement to any person or to any entity without the prior written consent of Owner and any assignment in violation
of this provision shall be null and void and constitute a material breach of this Agreement. Notwithstanding the foregoing, upon
written notice to Owner not less than five (5) days prior to the Closing Date, Optionee may assign this Agreement to any of the
following: any entity owned fifty percent (50%) or more by or directly or indirectly controlled by Optionee; a limited partnership
in which Optionee is a general partner; a general partnership in which Optionee is managing general partner; a co-tenancy in which
Optionee is a co-tenant; or a limited liability company in which Optionee is the managing member.

 

12.13         Optionee
acknowledges that except as set forth herein, Owner makes no warranties or representations regarding the adequacy, accuracy or
completeness of Owner’s environmental and/or engineering reports or other plans and materials relating to the Option Subject
Premises made available to Optionee, if any (collectively, the “Reports”), or other documents relating to the
Option Subject Premises, and Optionee shall have no claim against Owner based upon the Reports or such other documents relating
to the Option Subject Premises or Owner’s failure to deliver any documents relating to the Option Subject Premises to Optionee,
except as otherwise set forth herein.

 

12.14         Each
of the parties will pay its own attorneys’ fees except as otherwise specifically provided for herein. In any dispute or action
between the parties arising out of this Agreement, or in connection with the Option Subject Premises, the prevailing party shall
be entitled to have and recover from the other party all court costs and reasonable attorneys’ fees related thereto, whether
by final judgment or by out-of-court settlement.

 

    	 	24	 

     

    

 

12.15         Prior
to the Closing, Optionee agrees to treat the transactions contemplated herein and all information received with respect to the
Option Subject Premises, whether such information is obtained from Owner or from Optionee’s own studies, in a confidential
manner. Prior to the Closing, Optionee shall not disclose any such information to any third parties, other than such disclosure
(i) to Optionee’s counsel and other professionals, actual or potential investors, partners and lenders and their respective
counsel and other professionals, insurers, property managers, mortgage brokers, employees, agents, consultants, accountants and
advisors as may be required in connection with the transactions contemplated hereby, provided that in each of the aforementioned
cases, such disclosure is to be made expressly subject to this confidentiality requirement; (ii) as any governmental agency may
require in order to comply with applicable laws or a court order, or as a result of the fact that Optionee’s beneficial owner
is a public company; or (iii) to the extent that such information is a matter of public record, other than as a result of a breach
of Optionee’s obligations under this Section 12.15. Owner agrees to keep the terms and conditions of this Agreement confidential
and not make any public announcements or disclosures with respect to the subject matter of this Agreement prior to Closing without
the written consent of the Optionee. The provisions of this Section 12.15 shall survive the termination of this Agreement.

 

12.16         Owner
and Optionee represent and warrant to each other that they have dealt with no broker in connection with this Agreement other than
David Gibber (the “Broker”) and that they know of no broker who has claimed or may have the right to claim a
commission or other compensation, in connection with this transaction other than the Broker. Owner shall pay the Broker a commission
pursuant to a separate written agreement. Owner and Optionee shall indemnify, defend and hold harmless each other against any costs,
claims or expenses, including reasonable attorneys’ fees, arising out of the breach on their part of any representations,
warranties or agreements contained in this Section 12.16. The representations and obligations under this Section 12.16
shall survive the Closing or, if Closing does not occur, the termination of this Agreement.

 

[signature
page follows]

 

    	 	25	 

     

    

 

IN WITNESS WHEREOF,
the parties have signed this Agreement and have agreed to be bound by all of its terms and provisions as of the date first set
forth above.

 

	 	OWNER:
	 	 
	 	470 4th AVENUE INVESTORS LLC
	 	 
	 	By:	/s/ Dvir Cohen Hoshen
	 		Name: Dvir Cohen Hoshen
	 	 	Title: Manager

 

	 	OPTIONEE:
	 	 
	 	470 4TH AVENUE FEE OWNER, LLC
	 	 	 
	 	By:	/s/ Steven Kahn
	 	 	Steven Kahn, Chief Financial Officer

 

	 	ESCROW AGENT:
	 	 
	 	ACKNOWLEDGED AND AGREED WITH RESPECT TO SECTION 1.2 AND ARTICLE 11 ONLY.

 

	 	FIDELITY NATIONAL TITLE INSURANCE COMPANY
	 	 
	 	By:	/s/ Lawrence Boes
	 	  	Name: Lawrence Boes
	 		Title: SVP

 

     

     

    

 

EXHIBIT A

 

Legal Description

 

Lot 43

All that certain plot, piece or parcel of land situate, lying
and being in the Borough of Brooklyn, County of Kings, State of New York bounded and described as follows:

 

BEGINNING at the corner formed by the intersection of the northwesterly
side of 4th Avenue and the southeasterly side of 11th Street;

 

RUNNING THENCE northwesterly along the southeasterly side of
11th Street, 105 feet 9 inches to a point; THENCE TURNING and running easterly, on a line parallel with 4th Avenue, 120 feet 0
inches to a point;

 

THENCE TURNING and running southeasterly, on a line parallel
with 10th Street, 105 feet 9 inches to the northwesterly side of 4th Avenue;

 

THENCE TURNING and running southwesterly along the northwesterly
side of 4th Avenue, 120 feet 0 inches to the point and place of BEGINNING.

 

    	 	A-1	 

     

    

 

EXHIBIT B

 

Purchase and Sale Agreement

 

    	 	B-1	 

     

    

 

EXECUTION VERSION

 

PURCHASE AND SALE AGREEMENT

 

470 4th AVENUE

BROOKLYN, NEW YORK

 

     

     

    

 

PURCHASE AND SALE AGREEMENT

 

THIS PURCHASE AND SALE
AGREEMENT (this “Agreement”) is hereby made and entered into as of the ___ day of [___________], 2018 (the “Effective
Date”) by and between 470 4th AVENUE INVESTORS LLC, a New York limited liability company, having an address at
c/o Adam America Real Estate, 850 Third Avenue, Suite 13-D, New York, New York 10022 (hereinafter referred to as the “Seller”),
and 470 4TH AVENUE FEE OWNER, LLC, a Delaware limited liability company, having an address at c/o Trinity Place Holdings
Inc., 717 5th Avenue, Suite 1303, New York, New York 10022 (hereinafter referred to as the “Buyer”).

 

1.           SALE
OF PROPERTY.

 

Seller agrees to sell
and convey and Buyer agrees to purchase, subject to the terms and conditions of this Agreement, (a) all that certain piece, parcel
or tract of land located in the County of Kings, City and State of New York, as more fully described on Exhibit “A”
annexed hereto, and known 470 4th Avenue, Brooklyn, New York, together with (i) all easements, covenants, agreements, rights,
privileges, development rights and appurtenances thereto and (ii) all right, title and interest, if any, of the Seller in and
to any land lying in the bed of any street, road or avenue open or proposed in front of or adjoining said premises to the centerline
thereof, and all right, title and interest of the Seller in any award made or to be made in lieu thereof and in and to any unpaid
award for damage to said premises by reason of change of grade of any street (the “Land”); (b) certain development
rights and other rights and benefits conveyed to Seller’s predecessor in title pursuant to a Zoning Lot Development and
Easement Agreement dated February 4, 2014 and recorded on February 26, 2014 as CRFN 2014000070415 (the “Excess Development
Rights”); (c) the building (the “Building”), structures, improvements, fixtures, facilities, installations
and other systems of every kind and description now or hereinafter in, on, over and under the Land (the “Improvements”;
and together with the Land and Excess Development Rights, collectively, the “Subject Premises”); (d) all furniture,
furnishings, equipment, machinery, appliances and any other tangible personal property of every kind and description in, on, over
and under the Subject Premises owned by Seller and not owned by tenants under the Leases (as hereinafter defined) (collectively,
the “Personal Property”) as more particularly set forth on Exhibit “F” attached hereto;
(e) the management, service equipment, supply, security, maintenance, concession or other agreements with respect to or affecting
the Subject Premises (collectively, the “Service Agreements”) which are then in effect and not terminated as
of the Closing Date (as hereinafter defined); (f) any and all guaranties, licenses, approvals, certificates, permits, consents,
authorizations, variances and warranties relating to the Subject Premises (collectively, the “Permits and Licenses”);
(g) all right, title and interest of Seller in and to the Leases; and (h) any and all logos, designs and any other intellectual
property rights, related to the Subject Premises (the “Intangible Property”) ((a) through (h) above hereinafter
collectively called the “Property”).

 

    	 	1	 

     

    

 

2.            PURCHASE
PRICE.

 

The purchase price
(“Purchase Price”) for the Property is EIGHTY ONE MILLION AND 00/100 ($81,000,000.00) DOLLARS and shall be payable
as follows:

 

(a)          The
Option Deposit (as defined in the Option Agreement (as hereinafter defined)) in the amount of EIGHT MILLION ONE HUNDRED THOUSAND
AND 00/100 DOLLARS ($8,100,000.00) paid by Buyer to Escrow Agent (as defined in the Option Agreement) in accordance with the terms
and conditions of the Option Agreement shall be applied to the Purchase Price on the Closing Date (as hereinafter defined); and

 

(b)          At
the Closing, Buyer shall deliver the Purchase Price, minus the Option Deposit, and plus or minus adjustments as hereinafter provided,
representing the balance of the Purchase Price, to be paid by wire transfer of immediately available federal funds, to accounts
specified by Seller at a bank or banks designated by Seller (the “Closing Payment”).

 

3.            TITLE
AND CONVEYANCE.

 

3.01 On the Closing
Date, the Subject Premises shall be conveyed by Bargain and Sale Deed Without Covenant Against Grantor’s Acts (the “Deed”)
in proper form for recording, which shall be properly executed and acknowledged so as to convey to Buyer all of Seller’s
right, title and fee simple interest to the Property, subject to the following (the “Permitted Encumbrances”)
as the same may be modified in accordance with Section 3.03:

 

(a)          Real
estate taxes, water charges and sewer rents not yet due and payable;

 

(b)          The
leases, if any, entered into by Seller as of the Closing Date in accordance with Section 7.01(b) of this Agreement (individually
referred to herein as a “Lease” and, collectively, as the “Leases”); provided that all rights
of tenants under such Leases shall be “as tenants only”;

 

(c)          State
of facts reflected on that survey made by NY Land Surveyor P.C. dated August 27, 2008 and last revised June 13, 2017 with respect
to the Property;

 

(d)          Rights,
if any, pursuant to written agreements of utility companies to operate and maintain lines, cables, pipes, poles and distribution
boxes in, over and upon the Subject Premises;

 

(e)          Building
and zoning laws, restrictions, ordinances, codes and regulations affecting the Subject Premises, and all amendments and additions
thereto now or which will be in force and effect on the Closing Date;

 

(f)          Violations
of laws, regulations, ordinances, orders or requirements, if any, noted or issued by any governmental or municipal department or
authority having jurisdiction over the Subject Premises, including, but not limited to, sidewalk notices and violations, elevator
violations, boiler violations, fire violations, environmental violations, sanitary violations and other building violations, and
any conditions constituting such violations, although not so noted or issued (“Violations”), provided that Seller
shall (i) pay at Closing such amounts required to satisfy any of the foregoing including, without limitation, any interest and
penalties thereon to the extent any of the foregoing shall then be a lien or shall be in a determined monetary amount and (ii)
discharge, prior to Closing, all liens relating to Violations (or Seller may escrow sufficient funds with the Title Company such
that any exception for such liens is omitted from the Buyer’s title insurance policy in respect of the Subject Premises (the
“Buyer’s Title Policy”)); provided further that nothing contained herein shall be deemed to limit or affect
Seller’s representations and warranties and covenants specifically set forth in this Agreement, if any;

 

    	 	2	 

     

    

 

(g)          Unpaid
installments of assessments not due and payable on or before the Closing Date;

 

(h)          Any
lien or encumbrance (including, without limitation, any mechanics’ and materialmen’s lien) the removal of which is
the obligation of a commercial tenant pursuant to its Lease (a “Tenant’s Mechanic’s Lien”);

 

(i)          The
TCO (as hereinafter defined) issued to the Subject Premises;

 

(j)          The
matters described in Exhibit “B” attached hereto and made a part hereof; and

 

(k)          The
exceptions to title contained in the form of title policy or “marked-up” title commitment employed by the Title Company
(as hereinafter defined) set forth on Schedule B of such form of title policy or “marked up” title commitment attached
to the Option Agreement as Exhibit “I”.

 

3.02 Title to the Subject
Premises shall be such as will be insured by Fidelity National Title Insurance Company (the “Title Company”)
pursuant to the standard stipulations and conditions of the most current standard ALTA form of Owner’s Title Insurance Policy
in use in the State of New York, subject only to the Permitted Encumbrances. In the event the Title Company selected by Buyer fails
or refuses to insure title for any reason or no reason, Buyer or Seller (in the event that Buyer fails to exercise its right to
substitute) may substitute First American Title Insurance Company, Stewart Title Insurance Company, or Chicago Title Insurance
Company, in which event the substitute title company shall, for purposes of this Agreement, be the Title Company.

 

3.03 Prior to the Closing,
Buyer may obtain an update of the Commitment and Survey (and shall reasonably promptly after receipt forward such update, or cause
such updated Commitment and/or Survey to be forwarded, to Seller’s counsel). Within five (5) business days after receipt
of any such update, and in any event prior to the Closing Date, Buyer shall provide written notice to Seller of any exception to
title or Survey item in such update that is first appearing which is not a Permitted Encumbrance, and to which Buyer objects as
permitted in accordance with the terms of this Agreement. Any timely objection Buyer makes to any updated Commitment or Survey
which is not a Permitted Encumbrance is deemed a “Title Objection”. Within five (5) business days after Buyer
notifies Seller of a given Title Objection, Seller shall advise Buyer in writing whether or not Seller intends to cure such Title
Objection; provided, however, Seller shall be obligated in any event to cure any and all Mandatory Liens. In the event Seller notifies
Buyer that Seller does not intend to cure such Title Objection (other than a Mandatory Lien), Buyer shall have the right, as its
sole remedy, to be exercised within five (5) business days after receipt of such notice from Seller (time being of the essence),
to terminate this Agreement by written notice to Seller and receive the Option Deposit, and thereafter neither party shall have
any rights or obligations hereunder other than those rights and obligations expressly stated herein to survive the termination
of this Agreement. If Buyer does not so elect in writing to terminate this Agreement, then Buyer shall remain obligated hereunder
and shall accept title to the Property subject to such Title Objection (which shall be deemed a Permitted Encumbrance). In the
event Seller is unable to eliminate any Title Objection by the Closing Date, unless the same is waived by Buyer in writing, Seller
may adjourn the Closing Date for a reasonable period or periods not to exceed thirty (30) days in the aggregate (the “Title
Cure Period”), in order to attempt to eliminate such exception. Subject to Seller’s adjournment right above, Seller
shall at its expense cause any matter which is the subject of a Mandatory Lien to be bonded or otherwise discharged of record (if
applicable) by the Closing. “Mandatory Liens” shall mean the following: (i) all mortgages recorded against or
otherwise secured by the Property and related UCC filings and assignment of leases and rents and other evidence of indebtedness
secured by the Property; (ii) liens or encumbrances voluntarily created or permitted by Seller or its affiliates; (iii) judgments
against Seller and/or any encumbrance or matter to the extent any of them shall then be a lien and shall be in a determined monetary
amount; and (iv) mechanics’, materialmans’ and other similar statutory liens (excluding any Tenant’s Mechanic’s
Liens), subject to Section 3.09.

 

    	 	3	 

     

    

 

3.04 Subject to Seller’s
obligations in respect of Mandatory Liens, if Seller does not eliminate any objection to title that is not a Permitted Encumbrance,
then Buyer shall have the right to either (i) terminate this Agreement, in which event the Option Deposit, and all interest accrued
thereon, shall be returned to Buyer; or (ii) waive the objection to title and close the purchase of the Property; provided that
in the case of any Mandatory Liens that are not cured by Closing, Buyer shall also have the options to close the purchase of the
Property and have the Purchase Price reduced by such amount required to satisfy the Mandatory Liens, including any interest and
penalties thereon or obtain specific performance with respect thereto.

 

3.05 If Seller shall
adjourn the Closing Date in accordance with Section 3.03 in order to cure Buyer’s Title Objections, Seller shall,
upon the satisfactory cure thereof, promptly reschedule the Closing Date upon written notice to Buyer to a date that occurs five
(5) business days after notice to Buyer (the “New Closing Notice”) (which New Closing Notice shall be provided
to Buyer within two (2) business days after Seller cures the title objection in question)

 

3.06 Each party shall
deliver or cause to be delivered to the other party or to the Title Company such duly executed and acknowledged or verified certificates
and other instruments respecting its power and authority to perform the obligations hereunder, the due authorization thereof by
appropriate proceedings and the authority of the officer or other representatives acting for it at the Closing, as counsel for
the Title Company may reasonably request.

 

3.07 Unpaid franchise
taxes of any corporation in the chain of title shall not constitute an objection to title, provided, that at Closing, (i) Seller
makes such deposit or guarantee as might be reasonably required by the Title Company, (ii) the policy of title insurance issued
by the Title Company insures against the collection thereof out of the Subject Premises, and (iii) such franchise taxes are omitted
from Buyer’s lender’s title policy.

 

    	 	4	 

     

    

 

3.08 The amount of
any unpaid taxes, assessments and water and sewer charges which Seller is obligated to pay and discharge, with interest and penalties,
may at the option of Seller be allowed to Buyer out of the balance of the Purchase Price, if official bills therefor with interest
and penalties thereon figured to such date as is required by the Title Company are furnished to or obtained by the Title Company
at the Closing for payment thereof and the Title Company omits same from the Buyer’s Title Policy.

 

3.09 Anything in this
Agreement to the contrary notwithstanding, if the examination of title shall reveal a mechanic’s lien against the Subject
Premises, same shall not constitute an objection to title, provided, that at Closing, Seller, in its sole and absolute discretion,
either (i) makes such deposit as might be reasonably required by the Title Company with respect to liens the aggregate amount of
which is no greater than five hundred thousand dollars ($500,000) or (ii) posts a bond discharging such mechanic’s lien but
in both cases, provided, further that all such liens are omitted from the policy of title insurance issued by the Title Company
in favor of Buyer in respect of the Subject Premises.

 

4.           APPORTIONMENTS
AND ADJUSTMENTS.

 

4.01 The following
apportionments shall be made between the parties at the Closing as of midnight of the day preceding the Closing Date (the “Apportionment
Time”):

 

(a)          Collected
rents and additional rents (subject to the provisions of Section 4.03);

 

(b)          (i)
All real estate taxes and any general or special assessments imposed upon the Property, (ii) any fee, tax or charge imposed by
any governmental authority for any vaults, vault space or other space within or outside the boundaries of the Property, and (iii)
any taxes or assessments levied in whole or in part for public benefits to the Property, including any business improvement district
taxes (or similar taxes) affecting the Property), if any, on the basis of the fiscal period for which assessed. If the Closing
shall occur before a new tax rate is fixed, the apportionment of taxes at the Closing shall be upon the basis of the old tax rate
for the preceding period applied to the latest assessed valuation. Promptly after the new tax rate is fixed, the apportionment
of taxes shall be recomputed in accordance with Section 4.06;

 

(c)          Payments
due or payable under any Service Agreements assigned to Buyer pursuant to this Agreement;

 

(d)          Tax
and utility company deposits, if any;

 

(e)          Fees
for any assignable permits or licenses;

 

(f)          New
York State Division of Housing and Community Renewal, Realty Advisory Board or Rent Stabilization Association dues and any registration
or filing fees with any other governmental authority engaged in rent or housing regulation; and

 

    	 	5	 

     

    

 

(g)          All
other adjustments as are usual in a real estate closing in accordance with the customs and practice for comparable closings of
comparable buildings in New York, New York, except if specifically set forth to the contrary.

 

4.02 At Closing, Seller
shall pay to Buyer (or credit against the Purchase Price) the amount of any security deposits held by Seller (and interest thereon
(less any portion to which Seller is entitled as an administrative fee for the period prior to Closing) if the relevant lease provides
that interest accrues to the tenant). Buyer shall indemnify and hold Seller free and harmless from any claims by tenants or others
with regard to such deposits (and interest, if any) actually delivered or credited to Buyer, which obligation shall survive the
Closing Date and delivery of the Deed. Seller shall indemnify and hold Buyer free and harmless from any claims by tenants pursuant
to their leases with regard to the period prior to the Closing, which obligation shall survive the Closing Date and delivery of
the Deed.

 

4.03 If any tenant
is in arrears in the payment of rent on the Closing Date, Seller and Buyer shall agree upon a statement (“Delinquency
Statement”) of all rentals delinquent as of Closing. Rentals are “delinquent” when payment thereof is due
on or prior to the Closing but has not been made by the Closing. Any rental payments received subsequent to Closing by Seller or
Buyer shall immediately be applied as follows: all rentals received subsequent to Closing shall be remitted to Buyer or applied
first to any rentals and other charges due and payable for periods subsequent to Closing, and then any rentals shall be remitted
to Seller or applied to delinquent rentals. Any rental payment received by a party that, pursuant to the previous sentence, is
owed to the other party shall be remitted to the other party within ten (10) days after receipt. Subsequent to Closing, Seller
shall have no right to pursue any rentals on its own account against any remaining tenant under a Lease assigned to Buyer at Closing.
The terms of this Section 4.03 shall survive Closing and not be merged therein.

 

4.04 Seller shall pay
all installments of special assessments due and payable, or attributable to the period, prior to the Closing Date, and Buyer shall
pay all installments of special assessments due and payable on, or attributable to the period from and after the Closing Date.

 

4.05 Notwithstanding
anything to the contrary contained in this Agreement, Seller shall attempt to obtain readings of the water meters affecting the
Subject Premises to a date no earlier than thirty (30) days prior to the Closing. At or prior to Closing, Seller shall pay all
charges based upon such meter readings, adjusted to include a reasonable estimate of the additional charges due for the period
from the dates of the respective readings until the Closing Date. However, if Seller is unable to obtain readings of any meters
prior to Closing, Closing shall be completed without such readings and upon the obtaining thereof after Closing, Seller shall pay
the charges incurred prior to the Closing as reasonably determined by Seller based upon such readings; and at Closing, Seller shall
deposit with the Title Company an amount reasonably estimated by Seller to represent the anticipated obligation of Seller under
this sentence. This Section 4.05 shall survive the Closing.

 

4.06 Seller shall pay,
at or prior to Closing, all leasing costs in connection with the Leases including, without limitation, brokerage commissions, tenant
concessions and attorneys’ fees to the extent such costs are then due and payable, have been incurred and/or are attributable
to the period prior to the Closing. For the avoidance of doubt, all brokerage commissions and monetary concessions with respect
to the initial term of any Lease (but, in no event, any renewal or option periods) shall be deemed to be attributable to the period
prior to the Closing.

 

    	 	6	 

     

    

 

4.07 To the extent
that any final information necessary to cause the foregoing prorations to be made on the Closing Date is not available at the Closing
Date, the amount of any adjustment described in this Section shall be estimated and paid at the Closing Date based upon the best
information available to Seller and Buyer at the time and shall be adjusted no later than the date that is six (6) months following
the Closing Date. If there is a dispute between the parties regarding any such adjustment, such dispute may be submitted for determination
by either party to a nationally recognized certified public accounting firm reasonably and mutually selected by the parties. The
determination of such firm shall be final and conclusive on the parties and judgment may be entered thereon in any court of competent
jurisdiction. The rules of the American Arbitration Association applicable to commercial arbitrations shall apply to any such arbitration.
The parties shall make the appropriate adjusting payment between them within thirty (30) days after such adjustment is determined.
The foregoing obligations in this Section 4.07 shall survive the Closing, any other provision hereof to the contrary notwithstanding.

 

4.08 Seller acknowledges
that Buyer has advised Seller that an owner of beneficial interests in Buyer (the “Public Company Owner”) may
be required to make certain filings with the Securities and Exchange Commission (the “SEC Filings”) that relate
to the most recent pre-acquisition fiscal year and the current fiscal year through the Closing Date. Seller agrees to use commercially
reasonable efforts to assist the Public Company Owner in preparing the SEC Filings and to provide access to Seller’s information
reasonably required in connection thereto at no additional cost to Seller. In that regard, Seller acknowledges that as a publicly
traded company, the Public Company Owner will be required after Closing to comply with certain requirements of the Securities and
Exchange Commission; accordingly, Seller shall use commercially reasonable efforts to comply with the provisions set forth in Exhibit
“K” attached hereto and made a part hereof in order to facilitate such compliance by Buyer; provided that, notwithstanding
anything contained in this Agreement or in Exhibit “K” to the contrary, it is understood and agreed that Seller
will not be exposed to any liability on account thereof and shall not be required to incur any unreimbursed expense in connection
therewith.

 

5.           REPRESENTATIONS,
WARRANTIES AND AGREEMENTS OF SELLER.

 

5.01 Seller represents
and warrants to Buyer as of the Effective Date and, except as otherwise provided herein, as of the Closing Date:

 

(a)          Good
Standing. Each entity comprising Seller is duly organized and validly existing under the laws of the state in which they are
formed. The execution, delivery and performance of this Agreement on behalf of Seller has been duly authorized and no approval,
consent, order or authorization by any third party is required in connection with the execution and delivery of and compliance
with this Agreement by Seller. Seller is the record owner of the Subject Premises.

 

    	 	7	 

     

    

 

(b)          Condemnation.
Seller has not received notice of any pending or proposed condemnation or taking of the Subject Premises.

 

(c)          Service
Agreements. Exhibit “D” attached hereto includes a true, correct and complete list of all Service Agreements,
each of which, to Seller’s knowledge, is in full force and effect. Neither Seller nor, to Seller’s knowledge, any other
party is in default in any material respect under the terms of any Service Agreements. True and complete copies of the Service
Agreements have been provided to Buyer.

 

(d)          Due
Authorization. Each entity comprising Seller has the requisite power and authority to enter into and to perform the terms of
this Agreement. Each entity comprising Seller is not subject to any law, order, decree, restriction, or agreement which prohibits
or would be violated by this Agreement or the consummation of the transactions contemplated hereby. The execution and delivery
of this Agreement and the consummation of the transactions contemplated hereby have been duly authorized by all requisite action
of each entity comprising Seller. This Agreement constitutes, and each document and instrument contemplated hereby to be executed
and delivered by each entity comprising Seller, when executed and delivered, shall constitute the legal, valid and binding obligation
of each entity comprising Seller enforceable against each entity comprising Seller in accordance with its respective terms.

 

(e)          No
Violations. Neither the execution, delivery and performance of this Agreement nor the consummation of the transactions contemplated
hereby is prohibited by, or requires any entity comprising Seller to obtain any consent, authorization, approval or registration
under any law, statute, rule, regulation, judgment, order, writ, injunction or decree which is binding upon any entity comprising
Seller.

 

(f)          Employees;
Collective Bargaining Agreements. Neither Seller nor any affiliate of Seller has any employees employed at or with respect
to the Property which will become the obligation of Buyer after the Closing Date, subject to the terms of Section 7.01(f). There
is no collective bargaining agreement or other union agreement with respect to the Property.

 

(g)          Non-Foreign
Status. Seller is not a “foreign person” as defined in the United States Foreign Investment in Real Property Tax
Act of 1980 and the Internal Revenue Code of 1986, as amended.

 

(h)          Personal
and Intangible Property. Attached hereto as Exhibit “F” is a true, correct and complete list of all Personal
Property either currently on the Subject Premises or expected to be on the Subject Premises. Seller has good title to all such
Personal Property subject to no liens or encumbrances.

 

(i)          Options.
No party other than Buyer has any option, right of first offer or right of first refusal to purchase or lease any portion of the
Subject Premises.

 

(j)          Bankruptcy.
Seller is not the subject debtor under any federal, state or local bankruptcy or insolvency proceeding, or any other proceeding
for dissolution, liquidation or winding up of its assets.

 

    	 	8	 

     

    

 

(k)          Litigation.
There is no action, suit, proceeding or claim (any of the foregoing, an “Action”) affecting Seller or the Property
or any portion thereof (including, without limitation, any plan or effort by any governmental authority or agency which in any
way affects or would affect the present use or zoning of the Subject Premises), including, without limitation, any Action affecting
Seller and relating to the ownership, construction, operation, use or occupancy of the Property for its intended purpose, which
is pending or being prosecuted in any court or by or before any federal, state, county or municipal department, commission, board,
bureau or agency or other governmental entity, or to the knowledge of Seller, has any such Action been threatened or asserted,
other than claims (1) for personal injury, property damage or worker’s compensation, for which the insurance carrier has
not disclaimed liability and in which the amounts claimed do not exceed the applicable insurance policy limits, or (2) in respect
of landlord-tenant proceedings, for non-payment of rent.

 

(l)          Leases.
Schedule “5.01(l)” includes a true, correct and complete list of all Leases, including a rent roll (the “Rent
Roll”) that sets forth (i) the name of each tenant occupying a unit at the Subject Premises pursuant to a Lease, (ii)
the address or unit number of the unit leased by such tenant, (iii) the commencement and expiration dates of such Lease, (iv) the
monthly rental payable under such Lease, and (v) the amount of any security deposit and other deposits, if any, paid by such tenant,
and a report detailing the current payment status, arrearages and charges applicable to each such Lease. There are no other Leases,
licenses or other occupancy agreements of all or any portion of the Subject Premises other than the Leases set forth on Schedule
5.01(l), true and complete copies of each such Lease (including, without limitation all amendments, supplements or other modifications
thereto) have been provided or made available to Buyer, and each such Lease (including, without limitation all amendments, supplements
or other modifications thereto) is in full force and effect. As of Closing, there will be no such Leases except for the Leases
entered into pursuant to Section 7.01(b). Seller has not received or delivered any written notices from or to any of the
tenants under the Leases asserting that either Seller or any such tenant, respectively, is in default under any of the respective
Leases (other than defaults that have been cured in all material respects) and Seller is not aware of any such default (other than
de minimis defaults in the ordinary course). Other than as set forth on the Rent Roll, no rent under any Lease has been paid more
than one (1) month in advance of its due date. No leasing or brokerage agreement with respect to the Subject Premises will be binding
on Buyer other than that certain agreement between Seller (or its predecessor in interest) and Citi Habitats (to the extent of
obligations of the Property owner first arising after the Closing) and all brokerage commissions that are or will become due and
payable with respect to the initial term of each Lease reflected on the Rent Roll delivered at Closing have been paid in full.

 

(m)          OFAC.
Neither Seller nor any of its affiliates nor, to Seller’s knowledge, any of its agents acting in any capacity in connection
with the transactions contemplated hereby, is a person and/or entity with whom Buyer is restricted from doing business under the
Internal Emergency Economic Powers Act, 50 U.S.C. Section 1701 et seq.; the Trading With The Enemy Act, 50 U.S.C. App. Section
5; the U.S.A. Patriot Act of 2001, U.S. Treasury Department’s OFAC list of prohibited countries, territories, “specifically
designated nationals” or “blocked person”; any executive orders promulgated under any of the foregoing, any implementing
regulations promulgated thereunder by the U.S. Department of Treasury Office of Foreign Assets Control (“OFAC”)
(including those persons and/or entities named on OFAC’s List of Specially Designated Nationals and Blocked Persons); or
any other applicable law of the United States of America or any regulations, list or the like promulgated thereunder or relating
thereto.

 

    	 	9	 

     

    

 

(n)          ERISA.
Seller is not, and is not acting on behalf of (i) an “employee benefit plan” as defined in Section 3(3) of ERISA, that
is subject to Title I of ERISA, (ii) a “plan” as defined in and subject to Section 4975 of the Internal Revenue Code,
or (iii) an entity deemed to hold “plan asset” of any of the foregoing within the meaning of 29 C.F.R. Section 2510.3
101, as modified by Section 3(42) of ERISA. None of the transactions contemplated by this Agreement are in violation of any state
statutes applicable to Seller regulating investments of, and fiduciary obligations with respect to, governmental plans similar
to the provisions of Section 406 of ERISA or Section 4975 of the Internal Revenue Code.

 

5.02 As used in this
Agreement, the terms “Seller’s knowledge” or “knowledge of Seller” means the actual
knowledge (without independent inquiry or investigation) of Omri Sachs, Dvir Cohen Hoshen and/or Ron Vaksin and shall not be construed
to refer to the knowledge of any other employee, officer, director, member, manager or agent of Seller or any affiliate of Seller,
and shall in no event be deemed to include imputed or constructive knowledge.

 

5.03 The representations
and warranties made by Seller in Section 5.01 shall be deemed to be remade as of Closing and not be merged into any instrument
or conveyance delivered at Closing and will survive the Closing Date for a period one hundred eighty (180) days, which one hundred
eighty (180) day period will be extended for so long as any claim of breach of any such representation or warranty notice of which
was provided to Seller within such one hundred eighty (180) day period shall be outstanding. In no event shall Seller be liable
to Buyer for, or be deemed to be in default hereunder by reason of, any breach of representation or warranty which results from
any change that occurs after the date hereof and results from an act or omission that is permitted under the terms of this Agreement
(e.g., entering into a new Commercial Lease in accordance with the provisions of Section 7.01(b) hereof) so long as such
act or omission is taken in accordance with the terms of this Agreement; provided, however, that if, despite such changes, the
Closing occurs, such Seller’s representations and warranties set forth in this Agreement shall be deemed to have been modified
accordingly (but only to the extent that Buyer has actual knowledge prior to Closing of such changes to Seller’s representations
and warranties and nevertheless consummated the Closing). Notwithstanding anything contained herein to the contrary, the aggregate
liability of Seller arising in respect of the inaccuracy of any of such representations and warranties of Seller shall not exceed
the lesser of (x) the Buyer’s actual damages with respect to such breach, and (y) One Million Seven Hundred Fifty Thousand
Dollars ($1,750,000); provided that the foregoing shall not affect Buyer’s rights under Section 19.17 hereof
or any indemnification or similar provision hereof.

 

    	 	10	 

     

    

 

5.04 Changes in
Conditions. If, prior to the Closing Date, Seller or Buyer discovers a “material breach” (as hereafter defined)
of any of Seller’s representations or warranties in Section 5.01 hereof, the party making the discovery shall deliver
written notice to the other party of the breach and Seller will have the right to either cure the untrue representation or warranty
or not to cure such breach. Seller shall have ten (10) days after notice of the breach was given in which to give notice to Buyer
of the election by Seller to cure or not cure the untrue representation or warranty. Failure of Seller to timely make an election
to cure will be deemed an election not to cure. If Seller elects, or is deemed to have elected, not to cure such breach (or if
such breach is not curable), Buyer will have the right, as its sole and exclusive remedy, to: (i) terminate this Agreement without
any right or claim to damages, and the Option Deposit shall be returned to Buyer; or (ii) waive the breach and, subject to the
other terms and conditions of this Agreement, consummate the purchase of the Property without a reduction in the Purchase Price.
Buyer’s election between (i) and (ii), above, must be made within ten (10) business days after the receipt of Seller’s
notice or deemed notice not to cure such breach, and Buyer’s failure to timely make an election shall constitute Buyer’s
deemed termination of this Agreement. For the purposes of this Section 5.04, a “material breach” shall be a
breach of Seller’s representations and warranties in Section 5.01 hereof which, individually or when taken together
with all other breaches of Seller’s representations and warranties, may reasonably cost $100,000.00 or more, in the aggregate,
to cure or correct or may reasonably result in $100,000.00 or more in damages to Buyer.

 

6.           REPRESENTATIONS,
WARRANTIES AND AGREEMENTS OF BUYER.

 

6.01 Buyer represents
and warrants to Seller as of the date hereof and as of the Closing Date:

 

(a)          The
Buyer has the requisite power and authority to enter into and to perform the terms of this Agreement. Buyer is not subject to any
law, order, decree, restriction, or agreement which prohibits or would be violated by this Agreement or the consummation of the
transactions contemplated hereby. The execution and delivery of this Agreement and the consummation of the transactions contemplated
hereby have been duly authorized by all requisite action of Buyer. This Agreement constitutes, and each document and instrument
contemplated hereby to be executed and delivered by Buyer, when executed and delivered, shall constitute the legal, valid and binding
obligation of Buyer enforceable against Buyer in accordance with its respective terms.

 

(b)          Neither
the execution, delivery and performance of this Agreement nor the consummation of the transactions contemplated hereby is prohibited
by, or requires Buyer to obtain any consent, authorization, approval or registration under any law, statute, rule, regulation,
judgment, order, writ, injunction or decree which is binding upon Buyer.

 

(c)          There
are no judgments, orders, or decrees of any kind against Buyer unpaid or unsatisfied of record, nor any actions, suits or other
legal or administrative proceedings pending or, to the best of Buyer’s actual knowledge, threatened against Buyer, which
would have any material adverse effect on the business or assets or the condition, financial or otherwise, of Buyer or the ability
of Buyer to consummate the transactions contemplated by this Agreement.

 

(d)          Buyer
is not a person and/or entity with whom Seller is restricted from doing business under the Internal Emergency Economic Powers Act,
50 U.S.C. Section 1701 et seq.; the Trading With The Enemy Act, 50 U.S.C. App. Section 5; the U.S.A. Patriot Act of 2001; any executive
orders promulgated thereunder, any implementing regulations promulgated thereunder by OFAC (including those persons and/or entities
named on OFAC’s List of Specially Designated Nationals and Blocked Persons); or any other applicable law of the United States
of America.

 

    	 	11	 

     

    

 

6.02 BUYER ACKNOWLEDGES
THAT, EXCEPT AS SPECIFICALLY PROVIDED FOR HEREIN, SELLER HAS MADE NO REPRESENTATIONS OR WARRANTIES, IS UNWILLING TO MAKE ANY REPRESENTATIONS,
AND HELD OUT NO INDUCEMENTS TO BUYER, OTHER THAN THOSE HEREIN EXPRESSED. WITHOUT LIMITING THE GENERALITY OF THE FOREGOING, BUYER
HAS NOT RELIED ON ANY REPRESENTATIONS OR WARRANTIES, AND SELLER HAS NOT MADE ANY REPRESENTATIONS OR WARRANTIES IN EITHER CASE EXPRESS
OR IMPLIED, EXCEPT AS HEREIN EXPRESSLY PROVIDED, AS TO (I) THE CURRENT OR FUTURE REAL ESTATE TAX LIABILITY, ASSESSMENT OR VALUATION
OF THE SUBJECT PREMISES; (II) THE POTENTIAL QUALIFICATION OF THE SUBJECT PREMISES FOR ANY AND ALL BENEFITS CONFERRED BY FEDERAL,
STATE OR MUNICIPAL LAWS, WHETHER FOR SUBSIDIES, SPECIAL REAL ESTATE TAX TREATMENT, INCLUDING, WITHOUT LIMITATION, PURSUANT TO THE
§421-A TAX EXEMPTION PROGRAM, INSURANCE, MORTGAGES, OR ANY OTHER BENEFITS, WHETHER SIMILAR OR DISSIMILAR TO THOSE ENUMERATED;
(III) THE COMPLIANCE OF THE SUBJECT PREMISES, IN ITS CURRENT OR ANY FUTURE STATE WITH APPLICABLE ZONING ORDINANCES AND THE ABILITY
TO OBTAIN A VARIANCE IN RESPECT OF THE SUBJECT PREMISES’ NONCOMPLIANCE, IF ANY, WITH SAID ZONING ORDINANCES; (IV) THE AVAILABILITY
OF ANY REFINANCING FOR THE PURCHASE, ALTERATION, REHABILITATION OR OPERATION OF THE SUBJECT PREMISES FROM ANY SOURCE, INCLUDING
BUT NOT LIMITED TO STATE, CITY OR FEDERAL GOVERNMENT OR ANY INSTITUTIONAL LENDER; (V) THE CURRENT OR FUTURE USE OF THE SUBJECT
PREMISES; (VI) THE PRESENT AND FUTURE CONDITION AND OPERATING STATE OF ANY AND ALL MACHINERY OR EQUIPMENT ON THE SUBJECT PREMISES
EXCEPT AS HEREIN SET FORTH, AND THE PRESENT OR FUTURE STRUCTURAL AND PHYSICAL CONDITION OF THE BUILDING OR ITS SUITABILITY FOR
REHABILITATION OR RENOVATION; (VII) THE PRESENCE OR ABSENCE OF ANY RULES OR NOTICES OF VIOLATIONS OF LAW ISSUED BY ANY GOVERNMENTAL
AUTHORITY; (VIII) THE LAYOUT, LEASES, RENTS, INCOME, EXPENSES OR OPERATION OF THE SUBJECT PREMISES; (IX) COMPLIANCE OR NONCOMPLIANCE
WITH ANY APPLICABLE RENT LAWS, REGULATIONS OR GUIDELINES; AND IS THOROUGHLY ACQUAINTED WITH THEIR CONDITION AND AGREES TO PURCHASE
THEM “AS IS” AS OF THE CLOSING DATE. SELLER IS NOT LIABLE OR BOUND IN ANY MANNER BY ANY VERBAL OR WRITTEN STATEMENTS,
PERTAINING TO THE SUBJECT PREMISES OR THE OPERATION, LAYOUT, EXPENSES, CONDITION, INCOME, LEASES OR RENTS FURNISHED BY ANY REAL
ESTATE BROKER, AGENT, EMPLOYEE, OR OTHER PERSON, UNLESS THE SAME ARE SPECIFICALLY SET FORTH HEREIN. THIS SECTION SHALL SURVIVE
THE CLOSING.

 

    	 	12	 

     

    

 

7.           OPERATIONS
PENDING CLOSING; COVENANTS OF SELLER.

 

7.01         Seller
agrees that between the Effective Date and the Closing:

 

(a)          Seller
shall diligently and in a good workmanlike manner in substantial compliance with all applicable laws and regulations, this Agreement,
Leases in effect and the Option Agreement, fully complete and pay for any uncompleted work in respect of the Improvements erected
on the Subject Premises, as set forth on Exhibit “L” hereto (collectively, “Punchlist Items”).

 

(b)          Except
as expressly set forth in this Section 7.01(b) Seller shall not enter into or extend, renew, replace, otherwise modify, terminate
or cancel any Lease or any license or other occupancy agreement. Seller shall use commercially reasonable efforts to lease the
residential, retail and community facility units in the Building, which Leases may be entered into by Seller, provided that the
tenants and Leases meet the Leasing Guidelines (as defined in the Option Agreement). Seller shall not apply any security deposit
under any Lease other than in accordance with the provisions of such Lease and all applicable laws in connection with a default
by such tenant beyond any applicable notice and grace period. Seller will deliver to Buyer a weekly leasing report listing all
new Leases for the Property, together with copies of all Leases executed to date by Seller, which have not heretofore been delivered
to Buyer. Seller shall not permit any tenant under any Lease to assign its Lease or to perform any material alterations without
the prior consent of Buyer (unless Seller’s consent therefor is not required by the terms of such Lease).

 

(c)          Seller
shall not materially modify or amend any Service Agreement or enter into any new Service Agreement unless the same is terminable
without penalty or fee by the then owner of the Subject Premises upon no more than 30 days’ notice.

 

(d)          Seller
shall maintain in full force and effect until the Closing all liability and casualty insurance policies (“Insurance Policies”)
which are currently in effect (or replace same with comparable policies) for the Subject Premises. Seller hereby agrees that the
Insurance Policies shall include full replacement cost coverage with respect to the Subject Premises.

 

(e)          No
Personal Property included in this sale shall be removed from the Subject Premises unless the same are replaced with similar items
of at least equal quality prior to the Closing.

 

(f)          Seller
shall assign all third party warranties, guaranties and indemnities to Buyer at Closing to the extent that the foregoing are assignable
pursuant to documentation reasonably acceptable to Buyer; provided that if any such warranty, guaranty or indemnity shall
not be assignable to Buyer, then, at Buyer’s request, Seller shall use commercially reasonable efforts to enforce such warranty,
guaranty or indemnity for the benefit of Buyer and in accordance with Buyer’s reasonable written directions. The provisions
of this Section 7.01(f) shall survive the Closing.

 

(g)          Seller
shall be responsible to deliver the Subject Premises to Buyer at the Closing without any employees and free and clear of any claims
of any parties with respect to employment at the Subject Premises; provided, however, that (i) the occupancy of unit
“2 I” of the Subject Premises, pursuant to a license agreement which has been approved by Buyer, by the superintendent
of the Subject Premises shall not be a breach of the foregoing covenant, and (ii) the employment agreement for the superintendent,
if any, is approved by Buyer in advance in writing.

 

    	 	13	 

     

    

 

7.02 Seller shall continue
to diligently pursue prior to Closing (and if applicable, post-Closing in accordance with the terms set forth below), at Seller’s
sole cost and expense, receipt of a permanent certificate of occupancy for the Subject Premises (the “PCO”);
provided, however, the receipt thereof is not a condition to Closing. Seller agrees to cause a certificate of occupancy for the
Subject Premises complying with the requirements of Exhibit “M” hereto (the “TCO”), to be
issued prior to Closing and thereafter timely renewed from the date hereof through Closing so that at all times after the issuance
of the TCO and prior to issuance of the PCO, the TCO shall remain in full force and effect. If the PCO is not obtained prior to
the Closing, it shall be a condition precedent to Buyer’s obligations to close that the TCO then currently be in effect.

 

(a)          PCO
Delivery Date. If the PCO is not obtained prior to the Closing, it shall be a post-Closing obligation of Seller to obtain,
at Seller’s sole cost, the PCO no later than the date that occurs fifteen (15) months after the Closing Date (the “PCO
Deadline Date”). The obligations of Seller under this Section 7.02 shall survive Closing, any other provision
hereof to the contrary notwithstanding.

 

(b)          PCO
Escrow Holdback. If the PCO is not obtained and delivered to Buyer prior to the Closing, on the Closing Date, Buyer shall deduct
from the Closing Payment owed at Closing an amount equal to $250,000.00 (the “PCO Escrow Holdback”) and deposit
such amount in escrow pursuant to the terms of an escrow agreement (the “PCO Escrow Agreement”) in the form
attached hereto as Exhibit “G” among Seller, Buyer and the Escrow Agent.

 

7.03 In connection
with Seller’s post-Closing obligations to obtain the PCO upon request from Seller, Buyer shall (i) provide Seller with reasonable
access (subject to the rights of tenants and other occupants of the Improvements) to the Improvements to the extent necessary to
obtain the PCO including, without limitation, access to perform such work as is required to obtain the PCO, (ii) execute, at no
cost to, and without liability to, Buyer, all truthful and correct applications and certificates required to obtain the PCO reasonably
acceptable to Buyer, and (iii) at no cost to, and without liability to Buyer, take such other actions as are reasonably required
by Seller in order to obtain the PCO. Seller, at no cost to, and without liability to, Buyer, shall have the right to make such
truthful and correct filings as are required to obtain the PCO. Upon Buyer’s written request therefor, Seller shall provide
to Buyer, no later than ten (10) business days after such request, a list setting forth the details of construction required for
receipt of the PCO for the Improvements. Seller and Buyer shall cooperate with each other to diligently obtain the PCO. Without
limiting the foregoing, Seller shall indemnify, defend and hold Buyer harmless from and against all claims, losses, liabilities,
actions, demands, judgments, proceedings, damages, fines, penalties, costs and expenses (including, without limitation, reasonable
attorneys’ fees and costs) with respect to any lien or encumbrance filed against the Subject Premises arising as a consequence
of or in connection with any work performed by or on behalf of Seller with respect to Seller’s post-Closing obligations to
obtain the PCO. If Buyer or any of Buyer’s affiliates, employees, agents or other representatives shall fail, in any material
respect, to cooperate with Seller as is reasonably necessary in order to obtain the PCO and Seller gives Buyer notice of the occurrence
thereof with reasonable specificity, and such failure continues for thirty (30) days after Buyer’s receipt of such notice,
then the PCO Escrow Holdback shall be released to Seller in accordance with the PCO Escrow Agreement. The obligations of Seller
and Buyer under this Section 7.03 shall survive Closing.

 

    	 	14	 

     

    

 

7.04         Eligibility
Certificate.

 

(a)          On
or before the date of execution of this Agreement, Seller shall have provided a draft of the application (the “Final 421-a
Application”) for a final Certificate of Eligibility for 421-a benefits for the Subject Premises (the “Eligibility
Certificate”) to Buyer prior to submission thereof to the New York City Department of Housing Preservation and Development
(“HPD”), together with a 421-a maximum rent analysis of the Subject Premises. Buyer shall have the right to
review the draft Final 421-a Application and 421-a maximum rent analysis and require Seller to make changes thereto as Buyer shall
deem reasonably necessary or appropriate. Seller shall file the Final 421-a Application within two (2) business days from the date
Buyer notifies Seller in writing that Buyer has approved the Final 421-a Application.

 

(b)          Seller
shall file with HPD, no later than ninety (90) days from the issuance of the first TCO or the PCO covering all of the residential
units in the Building (the “421-a Filing Deadline”), all of the documents required to complete the Final 421-a
Application, including, without limitation, the following documents (collectively, the “Supporting Documents”):

 

(i)          a
cost certification and actual development costs certified by a certified public accountant;

 

(ii)         architect’s
completion of construction affidavit with copies of all TCOs and PCOs issued;

 

(iii)        proof
of multiple dwelling registration with HPD;

 

(iv)        proof
of rent registration with the New York State Homes and Community Renewal, including an affidavit in lieu of unregistered apartments;
and

 

(v)         updated
rent roll for the Subject Premises.

 

(c)          Seller
shall provide copies of the Supporting Documents to Buyer’s representatives prior to submission thereof to HPD but no later
than ten (10) days prior to the 421-a Filing Deadline. Buyer shall have the right to review the Supporting Documents and require
Seller to make changes thereto as Buyer shall deem reasonably necessary or appropriate.

 

(d)          Seller
shall diligently pursue prior to Closing (and if applicable, post-Closing in accordance with the terms set forth in this Section
7.04), at Seller’s sole cost and expense, receipt of the Eligibility Certificate; provided, however, the receipt thereof
is not a condition to Closing. Prior to Closing (and if applicable, post-Closing in accordance with the terms set forth in this
Section 7.04), Seller shall, at Seller’s sole cost and expense, cooperate in good faith with Buyer and shall cause
Seller’s contractors and professionals to cooperate in good faith with Buyer in connection with HPD’s approval of the
Final 421-a Application and its issuance of the Eligibility Certificate, including, without limitation, communicating with Buyer
and promptly providing any documentation or information requested by HPD in connection therewith.

 

    	 	15	 

     

    

 

(e)          Prior
to Closing (and if applicable, post-Closing in accordance with the terms set forth in this Section 7.04), Seller shall,
at Seller’s sole cost and expense, promptly deliver to Buyer copies of all material notices, correspondence, requests, and
written communications from HPD with respect to the Final 421-a Application and/or the Eligibility Certificate.

 

(f)          If
Buyer or any of Buyer’s affiliates, employees, agents or other representatives shall fail, in any material respect, to cooperate
with Seller as is reasonably necessary in order to obtain the Eligibility Certificate and Seller gives Buyer notice of the occurrence
thereof with reasonable specificity, and such failure continues for thirty (30) days after Buyer’s receipt of such notice,
then the Eligibility Certificate Escrow Holdback shall be released to Seller in accordance with the Eligibility Certificate Escrow
Agreement.

 

(g)          If
the Eligibility Certificate is not obtained prior to the Closing, it shall be a post-Closing obligation of Seller to obtain the
Eligibility Certificate, at Seller’s sole cost, no later than the date that occurs fifteen (15) months after the Closing
Date (the “Eligibility Certificate Deadline Date”).

 

(h)          If
the Eligibility Certificate is not obtained and delivered to Buyer prior to the Closing, on the Closing Date, Buyer shall deduct
from the Closing Payment owed at Closing an amount equal to $375,000.00 (the “Eligibility Certificate Escrow Holdback”),
as applicable, and deposit such amount in escrow pursuant to the terms of an escrow agreement (the “Eligibility Certificate
Escrow Agreement”) in the form attached hereto as Exhibit “I” among Seller, Buyer and the Escrow Agent.
The obligations of Seller under this Section 7.04 shall survive Closing, any other provision hereof to the contrary notwithstanding.

 

7.05 Promptly upon
request by Buyer, Seller shall use commercially reasonable efforts to cause each tenant under a commercial Lease that is not, by
its terms, subordinate to the lien of any mortgage subsequently placed on the Property, to execute a subordination, non-disturbance
and attornment agreement reasonably satisfactory to Buyer and its lender or in the form required by such tenant’s lease or
in the form customarily used by any national or regional tenant (collectively, the “SNDAs”).

 

8.           CLOSING.

 

8.01 Closing Date
and Time. The closing of the transaction which is the subject of this Agreement (the “Closing”) shall take
place on February 28, 2018 (the “Scheduled Closing Date”) at 10:00 a.m. at the office of Westerman Ball Ederer
Miller Zucker & Sharfstein, LLP, 1201 RXR Plaza, Uniondale, New York 11556 (“Seller’s Attorneys”),
or at the offices of Buyer’s lender, or Buyer’s lender’s attorney, or through escrow with the Title Company acting
as escrow agent as shall be mutually agreeable to Seller and Buyer, or in such other location and manner as the parties shall mutually
agree; provided, however, that Buyer shall have the right to adjourn the Scheduled Closing Date, upon notice to Seller, one (1)
time for no more than fifteen (15) days without payment of any fee or additional deposit to Seller (“Buyer’s First
Adjournment Option”). In the event Buyer exercises Buyer’s First Adjournment Option, Buyer shall have the right
to one (1) additional adjournment of the Scheduled Closing Date, upon notice to Seller, of no more than fifteen (15) days, upon
notice to Seller, provided that Buyer has contemporaneously therewith made payment of an additional $250,000.00 deposit to Escrow
Agent (which deposit shall thereafter be deemed to be a part of the Option Deposit), which amount shall be applied toward the Closing
Payment. The date on which the Closing shall occur shall be referred to herein as the “Closing Date”. TIME SHALL
BE OF THE ESSENCE for Buyer to close on the Scheduled Closing Date, as same may be extended pursuant to the express provisions
of this Section; it is hereby acknowledged and agreed that each such adjourned date set for Closing shall be TIME OF THE ESSENCE
against Buyer to close.

 

    	 	16	 

     

    

 

8.02 Closing Statement.
Buyer and Seller shall request that the Title Company prepare a joint closing statement reflecting the prorations, adjustments
and payments to be made by the parties under this Agreement (the “Closing Statement”) and furnish a draft of
same to the parties no later than three (3) business days prior to Closing, and Seller and Buyer shall work in good faith to agree
upon the same not less than one (1) business day prior to Closing. In the event any proration or apportionments made under this
Agreement shall prove to be incorrect for any reason, then either party shall be entitled to an adjustment to correct the same
in accordance with Section 4.07.

 

9.           BROKERAGE.

 

Seller and Buyer represent
and warrant to each other that they have dealt with no broker in connection with this Agreement other than David Gibber (the “Broker”)
and that they know of no broker who has claimed or may have the right to claim a commission or other compensation, in connection
with this transaction other than the Broker. Seller shall pay the Broker a commission pursuant to a separate written agreement.
Seller and Buyer shall indemnify, defend and hold harmless each other against any costs, claims or expenses, including reasonable
attorneys’ fees, arising out of the breach on their part of any representations, warranties or agreements contained in this
Section. The representations and obligations under this Section shall survive the Closing or, if Closing does not occur, the termination
of this Agreement.

 

10.          SELLER’S
CLOSING DELIVERABLES.

 

10.01 At the Closing,
Seller shall execute (where applicable) and deliver (and cause to be acknowledged, where applicable) or cause to be delivered the
following to Buyer:

 

(a)          A
deed, properly executed in recordable form so as to convey the title required by this Agreement containing the covenant required
by Section 13 of the Lien Law, and otherwise in the form of Exhibit “N” hereto.

 

(b)          Originals
of all Leases together with all tenant files and correspondence and all information pertaining to any work performed in the Subject
Premises.

 

    	 	17	 

     

    

 

(c)          A
schedule setting forth all arrears in rents and all security deposits, if any.

 

(d)          To
the extent that they are then in Seller’s possession or control, copies or originals of all Permits and Licenses.

 

(e)          An
original letter in the form of Exhibit “O” hereto, executed by Seller or its agent or attorneys, advising the
tenants of the sale of the Subject Premises to Buyer and directing that rents and other payments thereafter be sent to Buyer or
as Buyer may direct.

 

(f)          A
credit against the Purchase Price in the amount of the security deposits paid by tenants under the Leases together with interest
thereon if the term of the Lease provides that interest accrues to the benefit of the tenant.

 

(g)          An
Assignment and Assumption of all Leases in the form of Exhibit “E” of this Agreement.

 

(h)          A
New York City Real Property Transfer Tax Return, together with payment by Seller in satisfaction of the applicable transfer tax.

 

(i)          A
New York State Combined Real Estate Transfer Tax Return, together with payment by Seller in satisfaction of the applicable transfer
tax.

 

(j)          A
New York State Real Property Transfer Report, Form RP-5217NYC (the “Form 5217”) in respect of the Option Subject
Premises;

 

(k)          A
blanket assignment, in the form of “Exhibit “P” hereto, of all Seller’s right, title and interest,
if any, to all contractors’, suppliers’, materialmen’s and builders’ guarantees and warranties of workmanship
and/or materials in force and effect with respect to the Subject Premises on the Closing Date.

 

(l)          A
Certification of Non-Foreign Status, in the form of Exhibit “Q” hereto, in accordance with the provisions of
Section 1445 of the Internal Revenue Code of 1986, as amended (“Section 1445”).

 

(m)          Such
evidence as the Title Company shall reasonably require, to the effect that the execution and performance of this Agreement has
been duly authorized by Seller, and evidencing the authority of the signatory acting on behalf of Seller.

 

(n)          If
the initial lease up of the Improvements has not been completed, an assignment and assumption of the leasing agreement between
Seller (or Seller’s predecessor in interest) and Citi Habitats solely with respect to such the obligations of Seller (or
Seller’s predecessor in interest) that first arise after the Closing (“Broker Assignment”).

 

(o)          A
title affidavit substantially in the form of Exhibit “R” hereto.

 

    	 	18	 

     

    

 

(p)          A
certificate of Seller confirming that the warranties and representations of Seller set forth in this Agreement are true and complete
on and as of the Closing Date (as same may be changed in accordance with the provisions hereof).

 

(q)          An
Assignment and Assumption of the Service Agreements attached hereto as Exhibit “D” together with fully executed
copies of each of such Service Agreements.

 

(r)          A
bill of sale (the “Bill of Sale”) transferring and assigning to Buyer all of the Personal Property, which shall
be substantially in the form attached hereto as Exhibit “H”.

 

(s)          A
current payoff letter, in form and substance satisfactory to the Title Company, from the construction lender and the holders of
any other financing secured by all or any portion of the Subject Premises.

 

(t)          The
Closing Statement approved by Seller and Buyer.

 

(u)          Evidence
reasonably satisfactory to Buyer of the completion and payment of all Punchlist Items.

 

(v)         Seller’s
completed application for the Eligibility Certificate and Supporting Documentation.

 

(w)          Execute
and deliver any other documents required by this Agreement to be executed and delivered by Seller.

 

(x)          A
copy of a valid TCO or PCO.

 

(y)          Keys
to all locks at the Subject Premises in Seller’s possession.

 

(z)          Final
lien waivers and releases from all contractors performing any work in connection with completion of the Improvements, including,
but not limited to, the Punchlist Items.

 

(aa)         An executed tenant
estoppel certificate (“Tenant Estoppel Certificate”) from each non-residential tenant of the Building under
each Lease, dated no earlier than thirty (30) days prior to Closing, in the form of Exhibit “J”, in the form
required by such non-residential tenant’s Lease or on such national or regional retail tenant’s customarily used form,
which shall be accepted as long as it does not disclose any materially adverse information or information which is inconsistent
in any material respect with any representation or warranty of Seller contained in this Agreement or in the applicable Lease.

 

(bb)         The
PCO Escrow Agreement.

 

(cc)         The
Eligibility Certificate Escrow Agreement.

 

    	 	19	 

     

    

 

(dd)         If
requested by Buyer pursuant to Section 7.05 above and received by Seller, the SNDAs.

 

11.          BUYER’S
CLOSING DELIVERABLES.

 

11.01 At the Closing,
Buyer shall:

 

(a)          Pay
the balance of the Purchase Price, as provided in Section 2(b).

 

(b)          Cause
the Deed to be recorded, duly complete all required real property transfer tax returns and cause all such returns and payments
in satisfaction of such taxes to be delivered to the appropriate officers promptly after the Closing Date.

 

(c)          Execute
and deliver to Seller the Assignment and Assumption of Leases.

 

(d)          To
the extent Buyer elects to take an assignment of the applicable leasing and marketing agreement, execute and deliver to Seller
the Broker Assignment.

 

(e)          Execute
and deliver to Seller the Assignment and Assumption of Service Agreements.

 

(f)          Execute
and deliver to Seller the Closing Statement.

 

(g)          In
accordance with Section 13.04, execute and deliver to Seller any duly executed and acknowledged or verified certificates
and other instruments.

 

(h)          Provide
sufficient evidence to Seller that Buyer has employed the superintendent at the Subject Premises who was formerly employed by Seller.

 

(i)          Execute
and deliver any other documents required by this Agreement to be executed and delivered by Buyer.

 

(j)          Execute
and deliver the PCO Escrow Agreement.

 

(k)          Execute
and deliver the Eligibility Certificate Escrow Agreement.

 

12.         DESTRUCTION,
DAMAGE OR CONDEMNATION.

 

12.01 Casualty.
Seller shall keep in effect until Closing its present hazard insurance. The risk of any loss by fire or other casualty or by the
taking of the Subject Premises or any part thereof by eminent domain shall be assumed solely by Seller until Closing; provided,
however, if all or any part of the Improvements are damaged by fire or other casualty occurring on or after the Effective Date
and prior to the Closing Date, whether or not such damage affects a material part of the Improvements, then:

 

    	 	20	 

     

    

 

(a)          if
the estimated cost of repair or restoration is less than or equal to five percent (5%) of the Purchase Price, and the casualty
is fully covered by insurance (other than the deductible with respect thereto), neither party shall have the right to terminate
this Agreement and the parties shall nonetheless consummate this transaction in accordance with this Agreement, without any abatement
of the Purchase Price. In such event, (A) Seller shall assign to Buyer and Buyer shall have the right to make a claim for and to
retain all of Seller’s interest in Seller’s casualty insurance policies including, without limitation, any casualty
insurance proceeds received or receivable under the casualty insurance policies in effect with respect to the Subject Premises
on account of such physical damage or destruction, (B) Buyer shall receive a credit against the cash due at Closing for the amount
of the deductible on such casualty insurance policy and (C) Seller shall deliver to Buyer any insurance proceeds theretofore received
by Seller less the amounts reasonably and actually expended by Seller to collect any such insurance proceeds or to remedy any unsafe
conditions at the Subject Premises in compliance with the applicable law.

 

(b)          if
the estimated cost of repair or restoration exceeds five percent (5%) of the Purchase Price, or the casualty is not fully covered
by insurance (other than the deductible with respect thereto), Buyer shall have the option, exercisable on or prior to the Casualty
Election Date (as defined below), time being of the essence, to terminate this Agreement by delivering notice of such termination
to Seller, whereupon the Option Deposit shall be returned to Buyer and this Agreement shall be deemed canceled and of no further
force or effect, and neither party shall have any further rights or liabilities against or to the other in respect thereof except
for such provisions which are expressly provided in this Agreement to survive the termination hereof. If a fire or other casualty
described in this Section 12.01(b) shall occur and Buyer shall not timely elect to terminate this Agreement, then Buyer
and Seller shall consummate this transaction in accordance with this Agreement, without any abatement of the Purchase Price. In
such event, (A) Seller shall assign to Buyer and Buyer shall have the right to make a claim for and to retain all of Seller’s
interest in Seller’s casualty insurance policies including without limitation, any casualty insurance proceeds received or
receivable under the casualty insurance policies in effect with respect to the Subject Premises on account of such physical damage
or destruction, (B) Buyer shall receive a credit against the cash due at Closing for the amount of the deductible on such casualty
insurance policy and (C) Seller shall deliver to Buyer any insurance proceeds theretofore received by Seller less the amounts reasonably
and actually expended by Seller to collect any such insurance proceeds or to remedy any unsafe conditions at the Subject Premises
in compliance with applicable law.

 

(c)          The
estimated cost to repair and/or restore shall be established by estimates obtained from independent contractors jointly selected
by Buyer and Seller, each acting reasonably.

 

(d)          The
provisions of this Section 12.01 supersede any law applicable to the Subject Premises governing the effect of fire or other
casualty in contracts for real property. Any disputes under this Section 12.01 as to the cost of repair or restoration or
the time for completion of such repair or restoration shall be resolved by expedited arbitration in accordance with Exhibit
“C”.

 

(e)          “Casualty
Election Date” means the tenth (10th) business day following Buyer’s receipt of the estimates as described in clause
(c) above.

 

    	 	21	 

     

    

 

(f)          Seller
shall not settle any casualty insurance claim without first obtaining Buyer’s consent thereto (which consent shall not be
unreasonably withheld, delayed or conditioned).

 

12.02 Condemnation.
If, prior to the Closing Date, any part of the Subject Premises is taken (other than a temporary taking), or if Seller shall receive
an official notice from any governmental authority having eminent domain power over the Subject Premises of its intention to take,
by condemnation or eminent domain proceeding, all or any part of the Subject Premises (a “Taking”), then Seller
shall so notify Buyer (the “Taking Notice”), which Taking Notice shall describe the portion(s) of the Subject
Premises which will or might be taken, and the following provisions shall apply:

 

(a)          if
such Taking involves no portion of the Improvements, less than five percent (5%) of the Land and does not render any portion of
the Subject Premises unusable for its current or intended purpose or inaccessible as determined by an independent architect jointly
selected by Seller and Buyer, each acting reasonably, neither party shall have any right to terminate this Agreement, and the parties
shall nonetheless consummate this transaction in accordance with this Agreement, without any abatement of the Purchase Price; provided,
however, that Seller shall, on the Closing Date, (A) assign and remit to Buyer the net proceeds of any award or other proceeds
of such Taking which may have been collected by Seller as a result of such Taking less the reasonable out-of-pocket expenses incurred
by Seller in connection with such Taking, and (B) to the extent that the award or other proceeds shall have been collected, deliver
to Buyer an assignment of Seller’s right to any such award or other proceeds which may be payable to Seller as a result of
such Taking (it being understood that Buyer shall reimburse Seller for the reasonable out-of-pocket expenses incurred by Seller
in connection with such Taking).

 

(b)          if
such Taking involves any portion of the Improvements, more than five percent (5%) of the Land or renders the Subject Premises unusable
for its current purpose or inaccessible as determined by an independent architect jointly selected by Seller and Buyer, each acting
reasonably, Buyer shall have the option, exercisable on or prior to the Condemnation Election Date (as defined below), time being
of the essence, to terminate this Agreement by delivering notice of such termination to Seller, whereupon the Option Deposit shall
be returned to Buyer and this Agreement shall be deemed canceled and of no further force or effect, and neither party shall have
any further rights or liabilities against or to the other in respect thereof except pursuant to the provisions of this Agreement
which are expressly provided to survive the termination hereof. If a Taking described in this Section 12.02(b) shall occur
and Buyer shall not timely elect to terminate this Agreement, then Buyer and Seller shall consummate this transaction in accordance
with this Agreement, without any abatement of the Purchase Price or any liability or obligation on the part of Seller by reason
of such Taking; provided, however, that Seller shall, on the Closing Date, (A) assign and remit to Buyer the net proceeds of any
award or other proceeds of such Taking which may have been collected by Seller as a result of such Taking less the reasonable out-of-pocket
expenses incurred by Seller in connection with such Taking, and (B) to the extent that the award or other proceeds shall have been
collected, deliver to Buyer an assignment of Seller’s right to any such award or other proceeds which may be payable to Seller
as a result of such Taking (it being understood that Buyer shall reimburse Seller for the out-of-pocket reasonable expenses incurred
by Seller in connection with such Taking).

 

    	 	22	 

     

    

 

(c)          The
provisions of this Section 12.02 supersede any law applicable to the Subject Premises governing the effect of condemnation
in contracts for real property.

 

(d)          “Condemnation
Election Date” means the tenth (10th) business day following Buyer’s receipt of an independent architect’s
determination as described in clause (b) above

 

13.         OBJECTIONS
TO TITLE: FAILURE OF SELLER OR BUYER TO PERFORM.

 

13.01 Objections to
title and Seller and Buyer obligations in regard to same shall be addressed in accordance with the terms and conditions of this
Agreement.

 

13.02 Neither this
Agreement nor the Option Agreement shall be deemed to require Seller (1) to institute any legal action or proceeding to remove
any defects in or objections to title, or (2) to expend any moneys to remove any defects or objections to title, except as otherwise
set forth in this Agreement and the Option Agreement.

 

13.03 The acceptance
of the Deed by Buyer shall be deemed to be full performance of, and discharge of, every agreement and obligation on the part of
Seller to be performed hereunder as a condition precedent to Buyer’s obligations except for matters that are expressly provided
herein to survive the Closing.

 

13.04 Each party shall
deliver or cause to be delivered to the other party or to the Title Company such duly executed and acknowledged or verified certificates
and other instruments respecting its power and authority to perform the obligations hereunder, the due authorization thereof by
appropriate proceedings and the authority of the officer or other representatives acting for it at the Closing, as counsel for
the other party or the Title Company may reasonably request.

 

13.05 If the Subject
Premises shall, at the time of Closing, be subject to any liens, such as for judgments or transfer, franchise, license or other
similar taxes, or any encumbrances or other title exceptions which would be grounds for Buyer to reject title hereunder, the same
shall not be deemed an objection to title provided that, at the time of Closing, the Title Company will issue or bind itself to
issue a policy which will insure Buyer against collection thereof from or enforcement thereof against the Subject Premises for
a premium computed at regular rates. The existence of any such liens or other defects at the Closing shall not be deemed defects
in or objections to title if Seller shall deliver at the Closing instruments in form sufficient to satisfy the same which are acceptable
to the Title Company to provide the insurance coverage pursuant to the preceding sentence.

 

14.         CONDITIONS
TO CLOSING:

 

14.01 Buyer’s
Conditions to Closing. Notwithstanding anything to the contrary contained herein, the obligation of Buyer to close title and
pay the Purchase Price in accordance with this Agreement is expressly conditioned upon the fulfillment by and as of the Closing
Date of each of the conditions listed below, provided that Buyer, at its election, evidenced by written notice delivered to Seller
at or prior to the Closing, may waive all or any of such conditions:

 

    	 	23	 

     

    

 

(a)          Seller
shall have performed in all material respects all of Seller’s covenants, agreements and obligations under this Agreement
that are then required to be performed under this Agreement and Seller shall have executed and delivered to Buyer all of the documents
required to be delivered by Seller at the Closing and otherwise; and

 

(b)          All
of the representations and warranties made by Seller in this Agreement shall be true and correct in all material respects at and
as of the Closing Date as though such representations and warranties were made at and as of the Closing Date.

 

(c)          Title
to the Subject Premises shall be as provided in Section 3 of this Agreement.

 

14.02 Seller’s
Conditions to Closing. Notwithstanding anything to the contrary contained herein, the obligation of Seller to close title in
accordance with this Agreement is expressly conditioned upon the fulfillment by and as of the Closing Date of each of the conditions
listed below, provided that Seller, at its election, evidenced by notice delivered to Buyer at or prior to the Closing, may waive
all or any of such conditions:

 

(a)          Buyer
shall have executed and delivered to Seller all of the documents required to be delivered by Buyer at the Closing;

 

(b)          Buyer
shall have paid all monetary amounts due from Buyer hereunder and otherwise performed all of Buyer’s covenants, agreements
and obligations under this Agreement that are then required to be performed under this Agreement;

 

(c)          All
of the representations and warranties made by Buyer in this Agreement shall be true and correct in all material respects at and
as of the Closing Date as though such representations and warranties were made at and as of the Closing Date; and

 

(d)          Buyer
shall have delivered to Seller the balance of the Purchase Price (as adjusted under Section 4 hereof).

 

15.         NOTICES.

 

All written notices
and other communications (collectively, “Notices”) provided for or contemplated by this Agreement shall be addressed
to (a) the party to whom such Notice is directed at the address hereinafter specified, unless written Notice of a change of address
shall have been furnished to the other party and (b) to such party’s attorney at the address hereinafter specified for such
attorney. All Notices shall be in writing and sent by (i) by hand or overnight courier (e.g., Federal Express or United Parcel
Service, or (ii) by electronic mail portable document format (“PDF. For purposes of this Section 15, the addresses
of the parties for all Notices are as follows (unless changed by similar notice in writing given by the particular person whose
address is to be changed):

 

    	 	24	 

     

    

 

To Seller:

 

470 4th Avenue Investors LLC

c/o Adam America Real Estate

850 Third Avenue, Suite 13D

New York, New York 10022

Attn: Omri Sachs

Email: omri@adamamericare.com

 

With a copy to:

 

Westerman Ball Ederer Miller Zucker & Sharfstein,
LLP

1201 RXR Plaza

Uniondale, New York 11556

Attn: Jay H. Levinton, Esq.

Email: jlevinton@westermanllp.com

 

To Buyer:

 

470 4TH AVENUE FEE OWNER, LLC

c/o Trinity Place Holdings Inc.

717 5th Avenue, Suite 1303

New York, New York 10022

Attn: Steven Kahn

Email: steven.kahn@tphs.com

 

With a copy to:

 

Kramer Levin Naftalis & Frankel LLP

1177 Avenue of the Americas

New York, New York 10036

Attn: James P. Godman, Esq.

Email: jgodman@kramerlevin.com

 

To Escrow Agent:

 

Fidelity National Title Insurance Company

485 Lexington Avenue, 18th Floor

New York, New York 10017

Attn: John Tonelli

Email: jtonelli@fnf.com

 

Any Notice may be given
on behalf of any party by its counsel. Notices shall be deemed sufficiently served or given for all purposes under this Agreement,
(i) in the case of hand delivery, upon the earliest of actual receipt or refusal by the addressee; (ii) in the case of overnight
courier service, one (1) business day after delivered to the nationally recognized overnight courier service; or (iii) in the case
of a PDF Notice, on the date of transmission if received by 5:00 p.m. of the recipient’s business day (otherwise it shall
be deemed received on the next business day), provided that a hard copy of such PDF Notice is also delivered by hand delivery or
overnight courier as provided in clause (i) or (ii) above.

 

    	 	25	 

     

    

 

16.         CLOSING
COSTS.

 

Seller shall pay the
recording fees of any document necessary to satisfy any lien or other encumbrance against the Subject Premises. Seller shall pay
the New York City Real Property Transfer Tax and New York State Real Estate Transfer Tax. Seller shall also pay (i) all costs and
expenses, including any prepayment premiums, to prepay and release any mortgages or other security interests from the Subject Premises
or any portion thereof; and any other costs and expenses required to be paid by the construction lender (except in connection with
any assignment of any mortgage to the extent set forth in Section 19 hereof); (ii) fifty percent (50%) of customary and
reasonable escrow fees charged by the Title Company; and (iii) its share of the prorations described herein. Buyer shall pay the
costs of examination of title ordered by Buyer, any owner’s policy of title insurance to be issued insuring Buyer’s
title to the Subject Premises, any mortgagee’s policy of title insurance to be issued insuring any mortgage encumbering the
Subject Premises, as well as all other title charges and all other costs or expenses incident to execution or recordation of documents
required in order to transfer title to or mortgage the Subject Premises to Buyer’s lender. Buyer shall pay for all costs
incurred in connection with its inspections and due diligence. Buyer shall also pay (i) fifty percent (50%) of customary and reasonable
escrow fees charged by the Title Company; and (ii) its share of the prorations described herein. Additionally, any expenses, charges
and fees of Closing, not specifically allocated herein or elsewhere in this Agreement or incurred by a specific party, shall be
borne by the parties in accordance with general custom in New York City, or, if no such custom exists, shall be borne equally between
the parties. The terms of this Section 16 shall survive Closing and not be merged therein.

 

17.         PENDING
TAX REDUCTION PROCEEDINGS.

 

There are no proceedings
now pending for the reduction of the assessed valuation of the Subject Premises. Seller shall not file any new tax appeal for the
real estate taxes attributable to the period prior to and including the year of Closing, unless and until Seller obtains Buyer’s
prior written consent, which consent will not be unreasonably withheld or delayed. To the extent that Seller shall receive such
consent, Seller shall from time to time promptly provide Buyer with any material updates to the status of such appeals and shall
obtain Buyer’s consent (not to be unreasonably withheld) with respect to any settlement of any such appeal relating to the
Closing Tax Year (as defined below). Buyer shall have the right to control the progress of and to make all decisions with respect
to any contest of the real estate taxes and personal property taxes for the Subject Premises due and payable with respect to the
portion of the tax year in which the Closing occurs (the “Closing Tax Year”) from and after the Closing Date
and all subsequent years thereto. To the extent any refunds or credits are attributable to real estate and personal property taxes
paid for the Closing Tax Year, such amounts shall be prorated between Buyer and Seller in the manner provided in Section 4.01(b)
hereof, less costs incurred in obtaining such refund or credit and any amounts due to any past or present tenant of the Subject
Premises. The provisions of this Section 17 shall survive Closing (and not be merged therein).

 

    	 	26	 

     

    

 

18.         NO
FINANCING CONTINGENCY.

 

This Agreement is not
contingent upon the Buyer obtaining financing or any commitment for financing.

 

19.         MISCELLANEOUS
PROVISIONS.

 

19.01 This Agreement
together with the Option Agreement embodies and constitutes the entire understanding between the parties hereto with respect to
the transaction contemplated herein and therein, and all prior agreements, understandings, representations and statements, oral
or written, are merged into this Agreement and the Option Agreement. Neither this Agreement nor any provision hereof may be waived,
modified, amended, discharged, or terminated except by an instrument signed by the party against whom the enforcement of such waiver,
modification, amendment, discharge or termination is sought, and then only to the extent set forth in such instrument.

 

19.02 This Agreement
shall be governed by, and construed in accordance with, the laws of the State of New York in all respects including the validity,
interpretation and performance thereof and without giving effect to principles of conflict of laws.

 

19.03 The captions
in this agreement are inserted for convenience of reference only and in no way define, describe or limit the scope or intent of
this Agreement. Defined terms used herein and not otherwise defined shall have the meanings ascribed to them in the option agreement
to which this Agreement is an exhibit (the “Option Agreement”).

 

19.04 This Agreement
shall be binding upon and shall inure to the benefit of the successors and permitted assigns of the parties.

 

19.05 The submission
of this Agreement by Seller to Buyer shall in no manner bind Seller or Buyer nor shall the same constitute an offer by Seller to
Buyer. This Agreement shall be binding on the parties only when duly executed by Seller and Buyer and upon delivery of a copy of
such fully executed agreement to the parties.

 

19.06 If the provisions
of any exhibit or schedule to this Agreement are inconsistent with the provisions of this Agreement, the provisions of such exhibit
or schedule shall prevail.

 

19.07 The parties agree
that neither this Agreement nor the Option Agreement nor any memorandum or notice thereof shall be recorded in any public record
and that, unless otherwise agreed to by Seller or otherwise required by law, this Agreement, the Option Agreement and the transaction
contemplated herein shall be kept confidential by the parties, subject to Section 19.18. Nothing contained herein shall
affect or be deemed to affect Buyer’s right, if any, to file a lis pendens or notice of pendency of action or similar notice
against the Property in connection with an action for specific performance pursuant hereto.

 

19.08 Any time period
provided herein which shall end on a Saturday, Sunday or legal holiday shall extend to 5:00 p.m. of the next full business day.

 

    	 	27	 

     

    

 

19.09 This Agreement
may be executed in any number of counterparts and by facsimile or portable document format (PDF), each of which shall be deemed
an original and all of which constitute one and the same instrument.

 

19.10 In no event may
Buyer contact any tenants of the Subject Premises without Seller’s express written or oral consent. Any violation of this
provision shall be deemed to be a material default under this Agreement.

 

19.11 Nothing set forth
in this Agreement regarding survival shall be deemed to limit either party’s rights against the other by reason of the indemnity
obligations of such party to the other set forth in this Agreement which this Agreement provides shall survive the termination
of this Agreement.

 

19.12 Intentionally
Omitted.

 

19.13 Buyer may not
assign this Agreement to any person or to any entity without the prior written consent of Seller and any assignment in violation
of this provision shall be null and void and constitute a material breach of this Agreement. Notwithstanding the foregoing, upon
written notice to Seller not less than five (5) days prior to the Closing Date, Buyer may assign this Agreement to any of the following:
any entity owned fifty percent (50%) or more by or directly or indirectly controlled by Buyer; a limited partnership in which Buyer
is a general partner; a general partnership in which Buyer is managing general partner; a co-tenancy in which Buyer is a co-tenant;
or a limited liability company in which Buyer is the managing member.

 

19.14 BUYER ACKNOWLEDGES
THAT EXCEPT AS SET FORTH HEREIN, SELLER MAKES NO WARRANTIES OR REPRESENTATIONS REGARDING THE ADEQUACY, ACCURACY OR COMPLETENESS
OF SELLER’S ENVIRONMENTAL AND/OR ENGINEERING REPORTS OR OTHER PLANS AND MATERIALS RELATING TO THE SUBJECT PREMISES MADE AVAILABLE
TO BUYER, IF ANY (COLLECTIVELY, THE “REPORTS”), OR OTHER DOCUMENTS RELATING TO THE SUBJECT PREMISES, AND BUYER
SHALL HAVE NO CLAIM AGAINST SELLER BASED UPON THE REPORTS OR SUCH OTHER DOCUMENTS RELATING TO THE SUBJECT PREMISES OR SELLER’S
FAILURE TO DELIVER ANY DOCUMENTS RELATING TO THE SUBJECT PREMISES TO BUYER.

 

    	 	28	 

     

    

 

19.15 EFFECTIVE AS
OF THE CLOSING, BUYER, FOR ITSELF AND ITS AGENTS, AFFILIATES, SUCCESSORS AND ASSIGNS, HEREBY RELEASES, ACQUITS AND FOREVER DISCHARGES
SELLER AND (AS THE CASE MAY BE) SELLER’S OFFICERS, DIRECTORS, MEMBERS, MANAGERS, SHAREHOLDERS, TRUSTEES, PARTNERS, EMPLOYEES,
MANAGERS, AGENTS AND AFFILIATES FROM ANY AND ALL RIGHTS, CLAIMS, DEMANDS, CAUSES OF ACTIONS, LOSSES, DAMAGES, LIABILITIES, COSTS
AND EXPENSES (INCLUDING ATTORNEYS’ FEES AND DISBURSEMENTS WHETHER THE SUIT IS INSTITUTED OR NOT) WHETHER KNOWN OR UNKNOWN,
LIQUIDATED OR CONTINGENT OTHER THAN EXPRESSLY SET FORTH HEREIN (HEREINAFTER COLLECTIVELY CALLED THE “CLAIMS”),
WHICH BUYER HAS OR MAY HAVE IN THE FUTURE, ARISING FROM OR RELATING TO (i) ANY DEFECTS (PATENT OR LATENT) OF THE SUBJECT PREMISES
WHETHER THE SAME ARE THE RESULT OF NEGLIGENCE OR OTHERWISE, OR (ii) ANY OTHER CONDITIONS, INCLUDING, WITHOUT LIMITATION, ENVIRONMENTAL
AND OTHER PHYSICAL CONDITIONS, AFFECTING THE SUBJECT PREMISES, WHETHER THE SAME ARE A RESULT OF NEGLIGENCE OR OTHERWISE, INCLUDING
SPECIFICALLY, BUT WITHOUT LIMITATION, ANY CLAIM FOR INDEMNIFICATION OR CONTRIBUTION ARISING UNDER THE COMPREHENSIVE ENVIRONMENTAL
RESPONSE, COMPENSATION AND LIABILITY ACT (42 U.S.C. SECTION 9601, ET SEQ.) OR ANY OTHER FEDERAL, STATE OR LOCAL STATUTE, RULE OR
ORDINANCE RELATING TO LIABILITY OF PROPERTY OWNERS FOR ENVIRONMENTAL MATTERS, WHETHER ARISING BASED ON EVENTS THAT OCCURRED BEFORE,
DURING OR AFTER SELLER’S PERIOD OF OWNERSHIP OF THE SUBJECT PREMISES AND WHETHER BASED ON THEORIES OF INDEMNIFICATION, CONTRIBUTION
OR OTHERWISE. EXCEPT AS SET FORTH HEREIN, THE RELEASE SET FORTH IN THIS SECTION SPECIFICALLY INCLUDES, WITHOUT LIMITATION, ANY
CLAIMS UNDER ANY ENVIRONMENTAL LAWS OF THE UNITED STATES, THE STATE IN WHICH THE SUBJECT PREMISES IS LOCATED OR ANY POLITICAL SUBDIVISION
THEREOF OR UNDER THE AMERICANS WITH DISABILITIES ACT OF 1990, AS ANY OF THOSE LAWS MAY BE AMENDED FROM TIME TO TIME AND ANY REGULATIONS,
ORDERS, RULES OF PROCEDURES OR GUIDELINES PROMULGATED IN CONNECTION WITH SUCH LAWS, REGARDLESS OF WHETHER THEY ARE IN EXISTENCE
ON THE DATE OF THIS AGREEMENT. BUYER ACKNOWLEDGES THAT BUYER HAS BEEN REPRESENTED BY INDEPENDENT LEGAL COUNSEL OF BUYER’S
SELECTION AND BUYER IS GRANTING THIS RELEASE OF ITS OWN VOLITION AND AFTER CONSULTATION WITH BUYER’S COUNSEL. NOTWITHSTANDING
ANYTHING TO THE CONTRARY SET FORTH IN THIS AGREEMENT, THE RELEASE SET FORTH HEREIN DOES NOT APPLY TO THE AGREEMENTS, INDEMNITIES,
REPRESENTATIONS, WARRANTIES AND OBLIGATIONS OF SELLER EXPRESSLY SET FORTH IN THIS AGREEMENT WHICH THIS AGREEMENT PROVIDES ARE TO
SURVIVE CLOSING OR ANY ACTS CONTITUTING FRAUD BY SELLER OR ANY AGREEMENT, INDEMNITY, REPRESENTATION OR WARRANTY EXPRESSLY MADE
BY SELLER IN, OR ANY OTHER OBLIGATION OF SELLER UNDER, ANY DOCUMENT DELIVERED BY SELLER AT CLOSING. BUYER HEREBY SPECIFICALLY ACKNOWLEDGES
THAT BUYER HAS CAREFULLY REVIEWED THIS SUBSECTION AND DISCUSSED ITS IMPORT WITH LEGAL COUNSEL AND THAT THE PROVISIONS OF THIS SUBSECTION
ARE A MATERIAL PART OF THIS AGREEMENT.

 

19.16 At the option
of either Seller or Buyer, each party agrees to cooperate with the other to qualify this transaction as a like-kind exchange of
property described in Section 1031 of the Internal Revenue Code of 1986, as amended. Seller and Buyer further agree to consent
to the assignment of this Agreement to a “Qualified Intermediary” and/or take such other action reasonably necessary
to qualify this transaction as a like-kind exchange provided that (i) such exchange shall be at the cost and expense of the requesting
party (other than de minimus attorneys’ fees), (ii) the other party shall incur no liability as a result of, or in connection
with, such exchange and (iii) no such assignment of this Agreement shall relieve the requesting party of its obligations under
this Agreement or delay the Closing and the requesting party shall remain liable for the performance of its obligations hereunder
including, without limitation, the representations, warranties, and covenants given by it under this Agreement. The terms of this
Section 19.16 shall survive Closing and not be merged therein.

 

    	 	29	 

     

    

 

19.17 Each of the parties
will pay its own attorneys’ fees except as otherwise specifically provided for herein. In any dispute or action between the
parties arising out of this Agreement, or in connection with the Subject Premises, the prevailing party shall be entitled to have
and recover from the other party all court costs and reasonable attorneys’ fees related thereto, whether by final judgment
or by out-of-court settlement.

 

19.18 Prior to the
Closing, Buyer agrees to treat the transactions contemplated herein and all information received with respect to the Subject Premises,
whether such information is obtained from Seller or from Buyer’s own studies, in a confidential manner. Prior to the Closing,
Buyer shall not disclose any such information to any third parties, other than such disclosure (i) to Buyer’s counsel, and
other professionals, actual or potential investors, partners and lenders and their respective counsel and other professionals,
insurers, property managers, mortgage brokers, employees, agents, consultants, accountants and advisors as may be required in connection
with the transactions contemplated hereby, provided that in each of the aforementioned cases, such disclosure is to be made expressly
subject to this confidentiality requirement; (ii) as any governmental agency may require in order to comply with applicable laws
or a court order, or as a result of the fact that Buyer’s beneficial owner is a public company; or (iii) to the extent that
such information is a matter of public record, other than as a result of a breach of Buyer’s obligations under this Section
19.18. Buyer agrees to keep the terms and conditions of this Agreement confidential and not make any public announcements or disclosures
with respect to the subject matter of this Agreement prior to Closing without the written consent of the Buyer. Seller and Buyer
hereby acknowledge and agree that from and after the Closing neither party shall issue a press release related to the transactions
contemplated hereunder without the express written consent of the other party, which consent shall not be unreasonably withheld,
delayed or conditioned. The provisions of this Section 19.18 shall survive the Closing or earlier termination of this Agreement.

 

19.19 Notwithstanding
that there is no financing contingency, at Buyer’s request, Seller agrees to reasonably cooperate with Buyer in order to
enable Buyer to consummate an assignment of the existing mortgages on the Subject Premises to Buyer’s lender, provided such
assignment shall not be a condition of Closing. Buyer shall pay all payments and other costs and fees as and when due in connection
with such assignment by Buyer, including, but not limited to, all assignment fees, legal fees, application and processing fees
and payments and all other costs and expenses due to Seller’s existing mortgagee.

 

20.         ESCROW
AGENT.

 

Escrow Agent acknowledges
and agrees to continue to comply with Article 11 of the Option Agreement.

 

21.         DEFAULT;
REMEDIES.

 

21.01 Buyer’s
Remedies. Except as otherwise specifically provided in this Agreement, in the event that: (A) (1) Seller fails or refuses to
comply with any of Seller’s obligations hereunder, or (2) there is a material breach of any representation(s) or warranty(ies)
by Seller or failure of any condition precedent to Buyer’s obligations hereunder; and (B) Buyer is not in default of its
material obligations hereunder, then Buyer may elect one of the following options to be exercised by or on behalf of Buyer, as
Buyer’s sole and exclusive remedy, and subject to the qualifications hereinafter set forth:

 

    	 	30	 

     

    

 

(a)          to
terminate this Agreement by giving Seller written notice of such election; or

 

(b)          to
waive, prior to or at the Closing and after any cure period, the applicable objection or condition and proceed to close the transaction
contemplated hereby in accordance with the remaining terms hereof; or

 

(c)          in
the event of a failure or refusal by Seller to comply with any of Seller’s obligations hereunder, to seek to enforce specific
performance by Seller of its obligations under this Agreement.

 

21.02 In the event
of a termination of this Agreement by Buyer under Section 21.01(a), then (i) the Option Deposit shall be returned to Buyer;
and (ii) Seller and Buyer shall be released and relieved of further obligations, liabilities or claims hereunder except as herein
otherwise expressly specified. Any action for specific performance pursuant to the provisions of Section 21.01(c) must be
instituted by Buyer, if at all, within sixty (60) days after the later to occur of (x) the date upon which Buyer has actual knowledge
that the default has occurred or (y) the Scheduled Closing Date, and (ii) if such action is not so instituted by Buyer within such
period of time, then Buyer shall be deemed conclusively to have waived the right to institute such action and to have elected to
terminate this Agreement as provided above.

 

21.03 Seller’s
Remedies. If Buyer fails to consummate the purchase of the Property as required under this Agreement for any reason other than
the failure of any condition precedent to Buyer’s obligation to consummate such purchase, or Seller’s default or termination
of this Agreement by Buyer or Seller pursuant to a right to do so under the provisions of this Agreement, then the Option Deposit
shall be paid to Seller as liquidated damages (which shall be Seller’s sole and exclusive remedy against Buyer in tort or
contract, and in law or equity), it being agreed between the parties hereto that the actual damages to Seller in such event are
impractical to ascertain and the amount of the Option Deposit is a fair and reasonable estimate thereof and shall be and constitute
valid liquidated damages, not a forfeiture or penalty, at which time this Agreement shall be null and void and neither party shall
have any rights or obligations under this Agreement. WITHOUT LIMITATION OF THE FOREGOING, SELLER WAIVES ANY RIGHT THAT IT MAY HAVE
UNDER RELEVANT STATUTORY LAW TO SEEK SPECIFIC PERFORMANCE OR ANY OTHER REMEDY IN LAW OR EQUITY OTHER THAN RECEIPT OF THE OPTION
DEPOSIT.

 

21.04 Intentionally
Omitted.

 

21.05 Conflict with
the Option Agreement. In the event of any conflict between this Agreement (or any portion thereof) and the Option Agreement
after the exercise of the Option by Buyer (if applicable), the terms of this Agreement shall prevail.

 

[SIGNATURE PAGE FOLLOWS]

 

    	 	31	 

     

    

 

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

 

	 	SELLER:	 
	 	 	 
	 	470 4th AVENUE INVESTORS LLC
	 	 
	 	By:  	 
	 	 	Name:
	 	 	Title:

 

	 	BUYER:	 
	 	 	 
	 	470 4TH AVENUE FEE OWNER, LLC
	 	 
	 	By:  	 
	 	 	Name: Steven Kahn
	 	 	Title: Chief Financial Officer

 

	 	ESCROW AGENT:
	 	 
	 	ACKNOWLEDGED AND AGREED WITH RESPECT TO ARTICLE 2 AND ARTICLE 20 ONLY.
	 	 
	 	FIDELITY NATIONAL TITLE INSURANCE COMPANY

 

	 	By:  	 
	 	 	Name:
	 	 	Title:

 

Signature Page

 

     

     

    

 

EXHIBIT A

 

Legal Description of Subject Premises

 

Lot 43

All that certain plot, piece or parcel of land situate, lying
and being in the Borough of Brooklyn, County of Kings, State of New York bounded and described as follows:

 

BEGINNING at the corner formed by the intersection of the northwesterly
side of 4th Avenue and the southeasterly side of 11th Street;

 

RUNNING THENCE northwesterly along the southeasterly side of
11th Street, 105 feet 9 inches to a point; THENCE TURNING and running easterly, on a line parallel with 4th Avenue, 120 feet 0
inches to a point;

 

THENCE TURNING and running southeasterly, on a line parallel
with 10th Street, 105 feet 9 inches to the northwesterly side of 4th Avenue;

 

THENCE TURNING and running southwesterly along the northwesterly
side of 4th Avenue, 120 feet 0 inches to the point and place of BEGINNING.

 

    	 	A-1	 

     

    

 

EXHIBIT B

 

Additional Permitted Exceptions

 

		1.	Terms, Covenants, Restrictions Easements and Agreement
contained in a Zoning Lot Development and Easement Agreement made by and between Kenneth Juris and the Pauline Samuel’s
Living Trust (Owner) and Fourth Eleventh Development LLC (Developer), dated as of 2/4/2014 and recorded 2/26/2014 as CRFN 2014000070415.

 

		2.	Declaration of Zoning Lot Restrictions made by Kenneth
Juris, the Pauline Samuel’s Living Trust and Fourth Eleventh Development LLC dated as of 2/4/2014 and recorded 2/26/2014
as CRFN 2014000070417.

 

		3.	Zoning Lot Description and Ownership Statement made by
470 4th Avenue Investors LLC, dated 2/25/2014 and recorded 3/3/2014 as CRFN 2014000073663.

 

		4.	Zoning Lot Certification made by Riverside Abstract, LLC,
as agent for Fidelity National Title Insurance Company, dated 2/27/2014 and recorded 3/7/2014 as CRFN 2014000081121.

 

		5.	Certificate Pursuant to Zoning Lot Subdivision D dated
2/27/2014 and recorded 3/3/2014 as CRFN2014000073664.

 

    	 	B-1	 

     

    

 

EXHIBIT C

 

Arbitration

 

The provisions of Section 12 supersede
any law applicable to the Subject Premises governing the effect of fire or other casualty in contracts for real property. Any disputes
under Section 12 as to the cost of repair or restoration or the time for completion of such repair or restoration shall
be resolved by expedited arbitration before a single arbitrator in New York, New York acceptable to both Seller and Buyer in their
reasonable judgment in accordance with the rules of the American Arbitration Association; provided, that if Seller and Buyer fail
to agree on an arbitrator within five (5) days after a dispute arises, then either party may request the office of the American
Arbitration Association located in New York, New York to designate an arbitrator. Such arbitrator shall be an independent architect
or engineer who is impartial and has no existing or historical personal professional relationship with Seller, Buyer or their respective
affiliates, having at least ten (10) years of experience in the construction of multi-family apartment buildings in Brooklyn, New
York. The determination of the arbitrator shall be conclusive and binding upon the parties. The costs and expenses of such arbitrator
shall be borne equally by Seller and Buyer.

 

    	 	C-1	 

     

    

 

EXHIBIT D

 

Service Agreements

 

		1.	Full Service Maintenance Contract dated July 13, 2017 between
Major Elevator Corp. and Adam America Real Estate;

 

		2.	Building Link agreement dated June 01, 2017 between 470
4th Avenue Investors LLC and BuildingLink.com LLC;

 

		3.	Addendum to Saas Subscription Agreement between Yardi System,
Inc. and Adam America LLC dated May 16, 2017;

 

		4.	Service Agreement dated July 10, 2017 between 470 4th Avenue
Investors LLC and Spectrum;

 

		5.	Service Agreement dated July 27, 2017 between 470 4th Avenue
Investors LLC and Spectrum for virtual doorman services;

 

		6.	Service agreement for Integrated Pest Management signed
on July 27, 2017;

 

		7.	Gas allocation metering proposal submitted on July 21,
2016;

 

		8.	Virtual doorman proposal accepted on March 22, 2017;

 

		9.	Standard commercial fire alarm monitoring contract signed
on September 8, 2016;

 

		10.	Service agreement for inspection and testing services signed
on May 9, 2017.

 

    	 	D-1	 

     

    

 

EXHIBIT E

 

Assignment and Assumption of Leases

 

Assignment and Assumption of Leases

 

THIS ASSIGNMENT AND
ASSUMPTION OF LEASES (this “Assignment”) is made and executed as of _________ _____, 2018 between 470 4th
AVENUE INVESTORS LLC, a New York limited liability company, having an address at c/o Adam America Real Estate, 850 Third Avenue,
Suite 13-D, New York, New York 10022 (hereinafter referred to as the “Assignor”), and 470 4TH AVENUE FEE
OWNER, LLC, a Delaware limited liability company, having an address at c/o Trinity Place Holdings Inc., 717 5th Avenue, Suite
1303, New York, New York 10022, (hereinafter referred to as the “Assignee”).

 

WITNESSETH:

 

WHEREAS, Assignor has
on this date conveyed the real property more particularly described on Exhibit A attached hereto and incorporated herein
by this reference and the improvements located thereon in the City of New York, County of Kings, State of New York (hereinafter
collectively referred to as the “Property”) to Assignee pursuant to that certain Purchase and Sale Agreement
dated as of February, 2018, by and between Assignor and Assignee (the “Purchase Agreement”); and

 

WHEREAS, in connection
therewith, Assignor desires to assign to Assignee all Leases (defined below) in connection with the Property.

 

NOW, THEREFORE, in
consideration of the sum of Ten Dollars ($10.00) and for other good and valuable consideration, the receipt and adequacy of which
is hereby acknowledged, Assignor and Assignee acknowledge, understand and agree as follows:

 

1. Assignor
does hereby transfer, assign and set over unto Assignee, its successors and assigns, all of Assignor’s right, title and interest,
as landlord, under all leases listed on Exhibit B attached hereto (the “Leases”) and incorporated herein
by this reference, together with all security deposits and guarantees thereof, if any.

 

2. Assignee
hereby accepts the assignment made herein and assumes and covenants and agrees to perform and fulfill and be liable for all obligations
of the landlord under the Leases set forth in Exhibit B attached hereto which arise and relate to periods from and after
the date hereof. In no event shall Assignee by responsible for any duty or obligation under any Leases which arise or relate to
periods prior to the date hereof.

 

3. This Assignment
shall be binding on the parties hereto and their respective successors and assigns and shall be construed in accordance with and
governed by the laws of the State of New York.

 

    	 	E-1	 

     

    

 

4. This Assignment
may be executed by facsimile, PDF or other electronic signatures in multiple counterparts, each of which shall be deemed an original
and all of which together shall constitute one and the same agreement.

 

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

 

[SIGNATURE PAGES FOLLOW]

 

    	 	E-2	 

     

    

 

ASSIGNOR:

 

	 	470 4th AVENUE INVESTORS LLC
	 	 	 
	 	By:  	 
	 	 	Name:
	 	 	Title:

 

	 	ASSIGNEE:

 

	 	470 4TH AVENUE FEE OWNER, LLC
	 	 	 
	 	By:  	 
	 	 	Name: Steven Kahn
	 	 	Title: Chief Financial Officer

 

    	 	E-3	 

     

    

 

Exhibit A to Assignment and Assumption of
Leases

 

Legal Description of Real Property

 

Lot 43

All that certain plot, piece or parcel of land situate, lying
and being in the Borough of Brooklyn, County of Kings, State of New York bounded and described as follows:

 

BEGINNING at the corner formed by the intersection of the northwesterly
side of 4th Avenue and the southeasterly side of 11th Street;

 

RUNNING THENCE northwesterly along the southeasterly side of
11th Street, 105 feet 9 inches to a point; THENCE TURNING and running easterly, on a line parallel with 4th Avenue, 120 feet 0
inches to a point;

 

THENCE TURNING and running southeasterly, on a line parallel
with 10th Street, 105 feet 9 inches to the northwesterly side of 4th Avenue;

 

THENCE TURNING and running southwesterly along the northwesterly
side of 4th Avenue, 120 feet 0 inches to the point and place of BEGINNING.

 

    	 	E-4	 

     

    

 

Exhibit B to Assignment and Assumption of
Leases

 

Leases to be Assigned

 

    	 	E-5	 

     

    

 

EXHIBIT G

 

PCO Escrow Agreement

 

HOLDBACK ESCROW AGREEMENT 

(PCO)

 

THIS HOLDBACK ESCROW
AGREEMENT (this “Agreement”), dated as of the ___day of _____________, 2018 (the “Effective Date”),
is made by and between 470 4th AVENUE INVESTORS LLC, a New York limited liability company, having an address
at c/o Adam America Real Estate, 850 Third Avenue, Suite 13-D, New York, New York 10022 (hereinafter referred to as the “Seller”),
and 470 4TH AVENUE FEE OWNER, LLC, a Delaware limited liability company, having an address at c/o Trinity Place Holdings
Inc., 717 5th Avenue, Suite 1303, New York, New York 10022 (hereinafter referred to as the “Buyer”), and FIDELITY
NATIONAL TITLE INSURANCE COMPANY, a [____] corporation, having an address at [________] (“Escrow Agent”).

 

WITNESSETH:

 

WHEREAS, Seller
and Buyer entered into that certain Purchase and Sale Agreement, dated as of February ___, 2018 (the “Purchase Agreement”),
pursuant to which Seller agreed to sell, and Buyer agreed to purchase, upon and subject to the terms of the Purchase Agreement,
the Property (as defined in the Purchase Agreement);

 

WHEREAS, pursuant
to Section 7.02(b) of the Purchase Agreement, if Seller does not receive a PCO (as defined in the Purchase Agreement) prior to
the Closing, Buyer shall deduct from the Closing Payment (as defined in the Purchase Agreement) an amount equal to $250,000 (the
“PCO Escrow Holdback”), and deposit such amount in escrow pursuant to the terms of this Agreement for the purpose
of satisfying the post-closing obligations of Seller under Sections 7.02 and 7.03 of the Purchase Agreement.

 

WHEREAS, Seller
did not obtain a permanent certificate of occupancy for the Building prior to Closing and Buyer has deducted from the Closing Payment
an amount equal to $250,000, which sum shall represent the PCO Escrow Holdback.

 

NOW, THEREFORE,
in consideration of these premises, and other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged,
Buyer, Seller and Escrow Agent agree as follows:

 

1.          Recitals
Incorporated; Defined Terms. The recitals set forth hereinabove in this Agreement are hereby incorporated into this Agreement
as if fully set forth herein. Unless otherwise defined herein, capitalized terms used in this Agreement shall have the meanings
ascribed to such terms in the Purchase Agreement.

 

2.          Deposit
of Escrow Amount. Buyer has deposited the PCO Escrow Holdback with Escrow Agent on the Effective Date because Seller has not
received a permanent certificate of occupancy for the Building prior to the Closing.

 

    	 	G-1	 

     

    

 

3.          Appointment
of Escrow Agent; Acceptance of Appointment. Seller and Buyer hereby appoint Escrow Agent to act as escrowee under this Agreement,
and Escrow Agent, by its execution of this Agreement, hereby accepts such appointment and agrees to act in such capacity by holding,
administering and disbursing the PCO Escrow Holdback in accordance with the terms and conditions of this Agreement. Escrow Agent
hereby confirms that it shall not be entitled to any compensation for Escrow Agent’s services as escrowee.

 

4.          Release
of Balance of Escrow Amount. Escrow Agent shall: (i) disburse the PCO Escrow Holdback to the recipient set forth in joint written
directions delivered and signed by Seller and Buyer (the “Joint Written Directions”) following the receipt by
Escrow Agent of such Joint Written Directions; or (ii) disburse the PCO Escrow Holdback to Seller upon the delivery, prior to the
PCO Deadline Date (as defined below), by Seller of a PCO for the Building to Buyer and delivery, prior to the PCO Deadline Date,
by Seller to Escrow Agent and Buyer of a written statement confirming that such PCO has been obtained and delivered. Escrow Agent
shall promptly so disburse the PCO Escrow Holdback to the party entitled thereto. In the event that (i) or (ii) have not occurred
prior to the date that occurs fifteen (15) months after the date hereof (the “PCO Deadline Date”), then Buyer
shall be entitled to receive and retain the PCO Escrow Holdback for its own account and, to such end, Buyer may give written notice
(a “Demand Notice”) to Escrow Agent and Seller, which Demand Notice shall include a request of Escrow Agent
to deliver the PCO Escrow Holdback to Buyer. Seller shall then have five (5) business days to object in writing to the release
of the PCO Escrow Holdback as provided for in the Demand Notice. If Seller provides such an objection, then Escrow Agent shall
retain the PCO Escrow Holdback until it receives Joint Written Directions as to the disposition and disbursement of the PCO Escrow
Holdback, or until ordered by final court order, decree or judgment, which is not subject to appeal, to deliver the PCO Escrow
Holdback to a particular party, in which event the PCO Escrow Holdback shall be delivered in accordance with such notice, instruction,
order, decree or judgment. Notwithstanding the foregoing, if Buyer or any of Buyer’s affiliates, employees, agents or other
representatives shall fail, in any material respect, to cooperate with Seller as is reasonably necessary in order to obtain the
PCO and Seller gives Buyer notice of the occurrence thereof with reasonable specificity, and such failure continues for thirty
(30) days after Buyer’s receipt of such notice, then the Seller shall be entitled to receive and retain the PCO Escrow Holdback
for its own account and, to such end, Seller may deliver a Demand Notice to Escrow Agent and Buyer, which Demand Notice shall include
a request of Escrow Agent to deliver the PCO Escrow Holdback to Seller. Buyer shall then have five (5) business days to object
in writing to the release of the PCO Escrow Holdback as provided for in the Demand Notice. If Buyer provides such an objection,
then Escrow Agent shall retain the PCO Escrow Holdback until it receives Joint Written Directions as to the disposition and disbursement
of the PCO Escrow Holdback, or until ordered by final court order, decree or judgment, which is not subject to appeal, to deliver
the PCO Escrow Holdback to a particular party, in which event the PCO Escrow Holdback shall be delivered in accordance with such
notice, instruction, order, decree or judgment.

 

5.          Status,
Rights and Duties of Escrow Agent; Indemnification.

 

		a.	The parties hereto hereby confirm and agree that the status,
rights and duties of Escrow Agent hereunder shall be governed by the following provisions:

 

    	 	G-2	 

     

    

 

		i.	It is agreed that the duties of Escrow Agent hereunder
are only such as are herein specifically provided, being purely ministerial in nature, and that Escrow Agent shall incur no liability
hereunder whatsoever except for its willful misconduct or gross negligence, and Escrow Agent shall not incur any liability hereunder
with respect to any action taken or omitted by Escrow Agent (A) in good faith upon the advice of its legal counsel given with
respect to any questions relating to the duties and responsibilities of Escrow Agent hereunder, (B) in reliance on any instrument,
including any written notice or instruction provided for in this Agreement, not only as to its due execution and the validity
and effectiveness of its provisions, but also as to the truth and accuracy of any information contained therein, which Escrow
Agent shall in good faith believe to be genuine, to have been signed or presented by a person or persons having authority to sign
or present such instrument, and to conform to the provisions of this Agreement, or (C) pursuant to any judgment, decree, or order
of a court adjudicating any dispute arising under this Agreement or with respect to the PCO Escrow Holdback, Escrow Agent being
hereby authorized and directed to act in accordance with such judgment, decree or order regardless of whether an appeal has been
or may be taken therefrom by Seller or Buyer.

 

		ii.	Escrow Agent shall be under no responsibility with respect
to the PCO Escrow Holdback other than faithfully to deposit and hold the same as herein provided and thereafter to disburse or
release the same in accordance with the provisions of this Agreement and any subsequent instructions given in accordance with
the provisions of this Agreement.

 

		iii.	Escrow Agent assumes no liability under this Agreement
except that of a stakeholder. If there is hereafter any dispute between Seller and Buyer as to whether Escrow Agent is obligated
to disburse the PCO Escrow Holdback or as to whom any portion thereof is to be paid, Escrow Agent will not be obligated to make
any such payment but in such event Escrow Agent may hold such sum and documents until receipt by Escrow Agent of an authorization
in writing signed by Seller and Buyer directing the disposition of such sum or documents, or, in the absence of such authorization,
Escrow Agent may hold the sum until the final determination of the rights of the parties in an appropriate proceeding. If such
written authorization is not given, or proceedings for such determination are not begun and diligently continued, Escrow Agent
is not required to bring an appropriate action or proceeding for leave to deposit the sum or documents in court, pending such
determination, but in the event of any such dispute between Seller and Buyer under this Agreement, Escrow Agent is hereby authorized
to pay all sums then held hereunder into court in an appropriate interpleader proceeding.

 

		iv.	Following the disbursement of the PCO Escrow Holdback as
provided in this Agreement, Escrow Agent shall have no further duties or liabilities hereunder.

 

    	 	G-3	 

     

    

 

		b.	Seller and Buyer hereby jointly and severally indemnify
Escrow Agent against, and hold Escrow Agent harmless from, any and all claims, actions, demands, losses, damages, expenses (including,
without limitation, court costs and reasonable attorneys’ fees) and liabilities that may be imposed in connection with the
performance of Escrow Agent’s duties hereunder, including, without limitation, any litigation arising with respect to this
Agreement or involving the subject matter hereof, but excluding any such claims, actions, demands, losses, damages, expenses and
liabilities resulting from or arising out of any willful misconduct or gross negligence by Escrow Agent hereunder. The provisions
of this subsection 5(b) shall survive the termination of this Agreement.

 

		c.	Escrow Agent may resign at any time upon ten (10) days’
prior written notice to Seller and Buyer, and may be removed by the mutual consent of Seller and Buyer upon five (5) days’
prior written notice to Escrow Agent. Prior to the effective date of the resignation or removal of Escrow Agent or any successor
escrow agent, Seller and Buyer shall jointly appoint a successor escrow agent to hold the Escrow Funds, and any such successor
escrow agent shall execute and deliver to the predecessor escrow agent an instrument accepting such appointment, whereupon such
successor escrow agent shall, without further act, become vested with all of the rights, powers and duties of the predecessor
escrow agent as if originally named herein. Prior to the appointment of such successor escrow agent and such successor escrow
agent’s acceptance of such appointment, the escrow agent who is resigning or being removed shall continue to serve in such
capacity and, upon such appointment and acceptance, the predecessor escrow agent shall cooperate and take all necessary actions
to transfer the PCO Escrow Holdback to the successor escrow agent.

 

		d.	Escrow Agent shall not be liable or responsible for any
failure, refusal or inability of the depository bank to pay the PCO Escrow Holdback at Escrow Agent’s direction, or for
levies by taxing authorities based upon the taxpayer identification number used to establish the applicable money market account.

 

6.          Notices.
Each notice, instruction or certificate required or permitted by the terms hereof shall be in writing and shall be communicated
by personal delivery or nationally recognized overnight courier to the parties hereto at the address shown below or at such other
address as any of them may designate by notice to each of the others:

 

If to Seller:

 

470 4th Avenue Investors LLC

c/o Adam America Real Estate

850 Third Avenue, Suite 13D

New York, New York 10022

Attn: Omri Sachs

Email: omri@adamamericare.com

 

    	 	G-4	 

     

    

 

With a copy to:

 

Westerman Ball Ederer Miller Zucker & Sharfstein,
LLP

1201 RXR Plaza

Uniondale, New York 11556

Attn: Jay H. Levinton, Esq.

Email: jlevinton@westermanllp.com

 

If to Buyer:

 

470 4TH AVENUE FEE OWNER, LLC

c/o Trinity Place Holdings Inc.

717 5th Avenue, Suite 1303

New York, New York 10022

Attn: Steven Kahn

Email: steven.kahn@tphs.com

 

With a copy to:

 

Kramer Levin Naftalis & Frankel LLP

1177 Avenue of the Americas

New York, New York 10036

Attn: James P. Godman, Esq.

Email: jgodman@kramerlevin.com

 

If to Escrow Agent:

 

Fidelity National Title Insurance Company

485 Lexington Avenue, 18th Floor

New York, New York 10017

Attn: John Tonelli

Email: JTonelli@fnf.com

 

All notices shall be
deemed given upon the date of delivery if delivery is made before 5:00 PM (New York time) and, if delivered late, on the next business
day after delivery of such notice or the date of refusal to accept delivery of such notice.

 

7.          Miscellaneous.
This Agreement shall be governed by and construed in accordance with the laws of the State of New York, and shall be binding upon,
and inure to the benefit of, the parties hereto and their respective successors in interests and assigns. This Agreement constitute
the entire agreement between the parties concerning the subject matter hereof and the parties expressly agree that this Agreement
supersedes all prior agreements concerning the subject matter hereof, including without limitation, the Purchase Agreement. This
Agreement may be executed by the parties hereto in more than one counterpart, each of which, when executed and delivered, shall
be deemed to be an original and all of which shall constitute together but one and the same document. This Agreement may be amended
or modified only in a writing executed by the parties hereto. This Agreement may be executed in any number of counterparts and
by facsimile or portable document format (PDF), each of which shall be deemed an original and all of which constitute one and the
same instrument.

 

[SIGNATURE PAGES FOLLOW]

 

    	 	G-5	 

     

    

 

IN WITNESS WHEREOF, the parties hereto
have duly executed this Agreement as of the date first set forth above.

 

	 	SELLER:
	 	 
	 	470 4th AVENUE INVESTORS LLC
	 	 	 
	 	By:	 
	 	 	Name:
	 	 	Title:

 

[SIGNATURE PAGES CONTINUE]

 

    	 	G-6	 

     

    

 

	 	BUYER:
	 	 
	 	470 4TH AVENUE FEE OWNER, LLC
	 	 	 
	 	By:	 
	 	 	Name: Steven Kahn
	 	 	Title: Chief Financial Officer

 

[SIGNATURE PAGES CONTINUE]

 

    	 	G-7	 

     

    

 

The undersigned has
executed this Agreement solely to confirm its acceptance of the duties of the Escrow Agent and receipt of the PCO Escrow Holdback.

 

	 	ESCROW AGENT:
	 	 
	 	FIDELITY NATIONAL TITLE INSURANCE COMPANY
	 	 	 
	 	By:	 
	 	 	Name:
	 	 	Title:

 

[END OF SIGNATURES]

 

    	 	G-8	 

     

    

 

EXHIBIT H

 

Bill of Sale

 

BILL OF SALE

 

470 4th AVENUE INVESTORS
LLC, a New York limited liability company, having an address at c/o Adam America Real Estate, 850 Third Avenue, Suite 13-D,
New York, New York 10022 (hereinafter referred to as the “Seller”), in consideration of Ten Dollars ($10.00)
and other good and valuable consideration paid to Seller by 470 4TH AVENUE FEE OWNER, LLC, a Delaware limited liability
company, having an address at c/o Trinity Place Holdings Inc., 717 5th Avenue, Suite 1303, New York, New York 10022 (“Buyer”),
the receipt and sufficiency of which are hereby acknowledged, hereby sells, conveys, assigns, transfers, delivers and sets over
to Buyer all building systems, fixtures, furnishings, furniture, equipment, machinery, inventory, appliances and other tangible
and intangible personal property, in each case, to the extent owned by Seller and, in the case of tangible personal property, located
at 470 4th Avenue, Brooklyn, New York, and used in connection with the operation thereof (collectively, the “Personal
Property”). Reference is made to that certain Purchase and Sale Agreement, by and between Seller and Buyer, dated as
of February, 2018 (the “Agreement”).

 

TO HAVE AND TO HOLD unto
Buyer and Buyer’s successors and assigns forever.

 

This Bill of Sale is
made by Seller without recourse and without any expressed or implied representation or warranty whatsoever, except for the express
representations, warranties, covenants and obligations of Seller set forth in the Agreement, subject to the limitation on survival
of such representations and warranties as set forth in the Agreement.

 

[SIGNATURE PAGE TO FOLLOW]

 

    	 	H-1	 

     

    

 

IN WITNESS WHEREOF, Seller
has executed and delivered this Bill of Sale as of ________________ ___, 2018.

 

	 	SELLER:
	 	 
	 	470 4th AVENUE INVESTORS LLC
	 	 	 
	 	By:	 
	 	 	Name:
	 	 	Title:

 

    	 	H-2	 

     

    

 

	 	BUYER:
	 	 
	 	470 4TH AVENUE FEE OWNER, LLC
	 	 	 
	 	By:	 
	 	 	Name: Steven Kahn
	 	 	Title: Chief Financial Officer

 

    	 	H-3	 

     

    

 

EXHIBIT I

 

Eligibility Certificate Escrow Agreement

 

HOLDBACK ESCROW AGREEMENT 

(Eligibility Certificate)

 

THIS HOLDBACK ESCROW
AGREEMENT (this “Agreement”), dated as of the ___day of ______________, 2018 (the “Effective Date”),
is made by and between 470 4th AVENUE INVESTORS LLC, a New York limited liability company, having an address
at c/o Adam America Real Estate, 850 Third Avenue, Suite 13-D, New York, New York 10022 (hereinafter referred to as the “Seller”),
and 470 4TH AVENUE FEE OWNER, LLC, a Delaware limited liability company, having an address at c/o Trinity Place Holdings
Inc., 717 5th Avenue, Suite 1303, New York, New York 10022 (hereinafter referred to as the “Buyer”), and FIDELITY
NATIONAL TITLE INSURANCE COMPANY, a [____] corporation, having an address at [______] (“Escrow Agent”).

 

WITNESSETH:

 

WHEREAS, Seller
and Buyer entered into that certain Purchase and Sale Agreement, dated as of February ___, 2018 (the “Purchase Agreement”),
pursuant to which Seller agreed to sell, and Buyer agreed to purchase, upon and subject to the terms of the Purchase Agreement,
the Property (as defined in the Purchase Agreement);

 

WHEREAS, pursuant
to Section [7.04] of the Purchase Agreement, if Seller does not receive the Eligibility Certificate (as defined in the Purchase
Agreement) prior to the Closing, Buyer shall deduct from the Closing Payment (as defined in the Purchase Agreement) an amount equal
to $375,000 (the “Eligibility Certificate Escrow Holdback”), and deposit such amount in escrow pursuant to the
terms of this Agreement for the purpose of satisfying the post-closing obligations of Seller under Section [7.04] of the Purchase
Agreement.

 

WHEREAS, Seller
did not obtain an Eligibility Certificate for the Building prior to Closing and Buyer has deducted from the Closing Payment an
amount equal to $375,000, which sum shall represent the Eligibility Certificate Escrow Holdback.

 

NOW, THEREFORE,
in consideration of these premises, and other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged,
Buyer, Seller and Escrow Agent agree as follows:

 

1.          Recitals
Incorporated; Defined Terms. The recitals set forth hereinabove in this Agreement are hereby incorporated into this Agreement
as if fully set forth herein. Unless otherwise defined herein, capitalized terms used in this Agreement shall have the meanings
ascribed to such terms in the Purchase Agreement.

 

2.          Deposit
of Escrow Amount. Buyer has deposited the Eligibility Certificate Escrow Holdback with Escrow Agent on the Effective Date because
Seller has not received the Eligibility Certificate for the Building prior to the Closing.

 

    	 	I-1	 

     

    

 

3.          Appointment
of Escrow Agent; Acceptance of Appointment. Seller and Buyer hereby appoint Escrow Agent to act as escrowee under this Agreement,
and Escrow Agent, by its execution of this Agreement, hereby accepts such appointment and agrees to act in such capacity by holding,
administering and disbursing the Eligibility Certificate Escrow Holdback in accordance with the terms and conditions of this Agreement.
Escrow Agent hereby confirms that it shall not be entitled to any compensation for Escrow Agent’s services as escrowee.

 

4.          Release
of Balance of Escrow Amount. Escrow Agent shall: (i) disburse the Eligibility Certificate Escrow Holdback to the recipient
set forth in joint written directions delivered and signed by Seller and Buyer (the “Joint Written Directions”)
following the receipt by Escrow Agent of such Joint Written Directions; or (ii) disburse the Eligibility Certificate Escrow Holdback
to Seller upon the delivery, prior to the Eligibility Certificate Deadline Date (as defined below), by Seller of the Eligibility
Certificate for the Building to Buyer and delivery, prior to the Eligibility Certificate Deadline Date, by Seller to Escrow Agent
and Buyer of a written statement confirming that such Eligibility Certificate has been obtained and delivered. Escrow Agent shall
promptly so disburse the Eligibility Certificate Escrow Holdback to the party entitled thereto. In the event that (i) or (ii)
above have not occurred prior to the date that occurs fifteen (15) months after the date hereof (the “Eligibility Certificate
Deadline Date”), then Buyer shall be entitled to receive and retain the Eligibility Certificate Escrow Holdback for
its own account and, to such end, Buyer may give written notice (a “Demand Notice”) to Escrow Agent and Seller,
which Demand Notice shall include a request of Escrow Agent to deliver the Eligibility Certificate Escrow Holdback to Buyer. Seller
shall then have five (5) business days to object in writing to the release of the Eligibility Certificate Escrow Holdback as provided
for in the Demand Notice. If Seller provides such an objection, then Escrow Agent shall retain the Eligibility Certificate Escrow
Holdback until it receives Joint Written Directions as to the disposition and disbursement of the Eligibility Certificate Escrow
Holdback, or until ordered by final court order, decree or judgment, which is not subject to appeal, to deliver the Eligibility
Certificate Escrow Holdback to a particular party, in which event the Eligibility Certificate Escrow Holdback shall be delivered
in accordance with such notice, instruction, order, decree or judgment. Notwithstanding the foregoing, if Buyer or any of Buyer’s
affiliates, employees, agents or other representatives shall fail, in any material respect, to cooperate with Seller as is reasonably
necessary in order to obtain the Eligibility Certificate and Seller gives Buyer notice of the occurrence thereof with reasonable
specificity, and such failure continues for thirty (30) days after Buyer’s receipt of such notice, then the Seller shall
be entitled to receive and retain the Eligibility Certificate Escrow Holdback for its own account and, to such end, Seller may
deliver a Demand Notice to Escrow Agent and Buyer, which Demand Notice shall include a request of Escrow Agent to deliver the
Eligibility Certificate Escrow Holdback to Seller. Buyer shall then have five (5) business days to object in writing to the release
of the Eligibility Certificate Escrow Holdback as provided for in the Demand Notice. If Buyer provides such an objection, then
Escrow Agent shall retain the Eligibility Certificate Escrow Holdback until it receives Joint Written Directions as to the disposition
and disbursement of the Eligibility Certificate Escrow Holdback, or until ordered by final court order, decree or judgment, which
is not subject to appeal, to deliver the Eligibility Certificate Escrow Holdback to a particular party, in which event the Eligibility
Certificate Escrow Holdback shall be delivered in accordance with such notice, instruction, order, decree or judgment.

 

    	 	I-2	 

     

    

 

5.          Status,
Rights and Duties of Escrow Agent; Indemnification.

 

		a.	The parties hereto hereby confirm and agree that the status,
rights and duties of Escrow Agent hereunder shall be governed by the following provisions:

 

		i.	It is agreed that the duties of Escrow Agent hereunder
are only such as are herein specifically provided, being purely ministerial in nature, and that Escrow Agent shall incur no liability
hereunder whatsoever except for its willful misconduct or gross negligence, and Escrow Agent shall not incur any liability hereunder
with respect to any action taken or omitted by Escrow Agent (A) in good faith upon the advice of its legal counsel given with
respect to any questions relating to the duties and responsibilities of Escrow Agent hereunder, (B) in reliance on any instrument,
including any written notice or instruction provided for in this Agreement, not only as to its due execution and the validity
and effectiveness of its provisions, but also as to the truth and accuracy of any information contained therein, which Escrow
Agent shall in good faith believe to be genuine, to have been signed or presented by a person or persons having authority to sign
or present such instrument, and to conform to the provisions of this Agreement, or (C) pursuant to any judgment, decree, or order
of a court adjudicating any dispute arising under this Agreement or with respect to the Eligibility Certificate Escrow Holdback,
Escrow Agent being hereby authorized and directed to act in accordance with such judgment, decree or order regardless of whether
an appeal has been or may be taken therefrom by Seller or Buyer.

 

		ii.	Escrow Agent shall be under no responsibility with respect
to the Eligibility Certificate Escrow Holdback other than faithfully to deposit and hold the same as herein provided and thereafter
to disburse or release the same in accordance with the provisions of this Agreement and any subsequent instructions given in accordance
with the provisions of this Agreement.

 

		iii.	Escrow Agent assumes no liability under this Agreement
except that of a stakeholder. If there is hereafter any dispute between Seller and Buyer as to whether Escrow Agent is obligated
to disburse the Eligibility Certificate Escrow Holdback or as to whom any portion thereof is to be paid, Escrow Agent will not
be obligated to make any such payment but in such event Escrow Agent may hold such sum and documents until receipt by Escrow Agent
of an authorization in writing signed by Seller and Buyer directing the disposition of such sum or documents, or, in the absence
of such authorization, Escrow Agent may hold the sum until the final determination of the rights of the parties in an appropriate
proceeding. If such written authorization is not given, or proceedings for such determination are not begun and diligently continued,
Escrow Agent is not required to bring an appropriate action or proceeding for leave to deposit the sum or documents in court,
pending such determination, but in the event of any such dispute between Seller and Buyer under this Agreement, Escrow Agent is
hereby authorized to pay all sums then held hereunder into court in an appropriate interpleader proceeding.

    	 	I-3	 

     

    

 

		iv.	Following the disbursement of the Eligibility Certificate
Escrow Holdback as provided in this Agreement, Escrow Agent shall have no further duties or liabilities hereunder.

 

		b.	Seller and Buyer hereby jointly and severally indemnify
Escrow Agent against, and hold Escrow Agent harmless from, any and all claims, actions, demands, losses, damages, expenses (including,
without limitation, court costs and reasonable attorneys’ fees) and liabilities that may be imposed in connection with the
performance of Escrow Agent’s duties hereunder, including, without limitation, any litigation arising with respect to this
Agreement or involving the subject matter hereof, but excluding any such claims, actions, demands, losses, damages, expenses and
liabilities resulting from or arising out of any willful misconduct or gross negligence by Escrow Agent hereunder. The provisions
of this subsection 5(b) shall survive the termination of this Agreement.

 

		c.	Escrow Agent may resign at any time upon ten (10) days’
prior written notice to Seller and Buyer, and may be removed by the mutual consent of Seller and Buyer upon five (5) days’
prior written notice to Escrow Agent. Prior to the effective date of the resignation or removal of Escrow Agent or any successor
escrow agent, Seller and Buyer shall jointly appoint a successor escrow agent to hold the Escrow Funds, and any such successor
escrow agent shall execute and deliver to the predecessor escrow agent an instrument accepting such appointment, whereupon such
successor escrow agent shall, without further act, become vested with all of the rights, powers and duties of the predecessor
escrow agent as if originally named herein. Prior to the appointment of such successor escrow agent and such successor escrow
agent’s acceptance of such appointment, the escrow agent who is resigning or being removed shall continue to serve in such
capacity and, upon such appointment and acceptance, the predecessor escrow agent shall cooperate and take all necessary actions
to transfer the Eligibility Certificate Escrow Holdback to the successor escrow agent.

 

		d.	Escrow Agent shall not be liable or responsible for any
failure, refusal or inability of the depository bank to pay the Eligibility Certificate Escrow Holdback at Escrow Agent’s
direction, or for levies by taxing authorities based upon the taxpayer identification number used to establish the applicable
money market account.

 

6.          Notices.
Each notice, instruction or certificate required or permitted by the terms hereof shall be in writing and shall be communicated
by personal delivery or nationally recognized overnight courier to the parties hereto at the address shown below or at such other
address as any of them may designate by notice to each of the others:

 

    	 	I-4	 

     

    

 

If to Seller:

 

470 4th Avenue Investors LLC

c/o Adam America Real Estate

850 Third Avenue, Suite 13D

New York, New York 10022

Attn: Omri Sachs

Email: omri@adamamericare.com

 

With a copy to:

 

Westerman Ball Ederer Miller Zucker & Sharfstein,
LLP

1201 RXR Plaza

Uniondale, New York 11556

Attn: Jay H. Levinton, Esq.

Email: jlevinton@westermanllp.com

 

If to Buyer:

 

470 4TH AVENUE FEE OWNER, LLC

c/o Trinity Place Holdings Inc.

717 5th Avenue, Suite 1303

New York, New York 10022

Attn: Steven Kahn

Email: steven.kahn@tphs.com

 

With a copy to:

 

Kramer Levin Naftalis & Frankel LLP

1177 Avenue of the Americas

New York, New York 10036

Attn: James P. Godman, Esq.

Email: jgodman@kramerlevin.com

 

If to Escrow Agent:

 

Fidelity National Title Insurance Company

485 Lexington Avenue, 18th Floor

New York, New York 10017

Attn: John Tonelli

Email: JTonelli@fnf.com

 

All notices shall be deemed
given upon the date of delivery if delivery is made before 5:00 PM (New York time) and, if delivered late, on the next business
day after delivery of such notice or the date of refusal to accept delivery of such notice.

 

7.          Miscellaneous.
This Agreement shall be governed by and construed in accordance with the laws of the State of New York, and shall be binding upon,
and inure to the benefit of, the parties hereto and their respective successors in interests and assigns. This Agreement constitute
the entire agreement between the parties concerning the subject matter hereof and the parties expressly agree that this Agreement
supersedes all prior agreements concerning the subject matter hereof, including without limitation, the Purchase Agreement. This
Agreement may be executed by the parties hereto in more than one counterpart, each of which, when executed and delivered, shall
be deemed to be an original and all of which shall constitute together but one and the same document. This Agreement may be amended
or modified only in a writing executed by the parties hereto. This Agreement may be executed in any number of counterparts and
by facsimile or portable document format (PDF), each of which shall be deemed an original and all of which constitute one and the
same instrument.

 

[SIGNATURE PAGES FOLLOW]

 

    	 	I-5	 

     

    

  

IN WITNESS WHEREOF, the parties hereto have
duly executed this Agreement as of the date first set forth above.

 

	 	

 SELLER:

	 	 
	 	470 4th AVENUE INVESTORS LLC
	 	 	 
	 	By:  	 
			Name:
	 	 	Title:

 

[SIGNATURE PAGES CONTINUE]

 

    	 	I-6	 

     

    

 

	 	BUYER:
	 	 
	 	470 4TH AVENUE FEE OWNER, LLC
	 	 	 
	 	By:  	 
	 	 	Name: Steven Kahn
	 	 	Title: Chief Financial Officer

 

[SIGNATURE PAGES CONTINUE]

 

    	 	I-7	 

     

    

  

The undersigned has executed
this Agreement solely to confirm its acceptance of the duties of the Escrow Agent and receipt of the Eligibility Certificate Escrow
Holdback. 

 

	 	ESCROW AGENT:
	 	 
	 	FIDELITY NATIONAL TITLE INSURANCE COMPANY
	 	 	 
	 	By:  	 
	 	 	Name:
	 	 	Title:

 

[END OF SIGNATURES]

  

    	 	I-8	 

     

    

  

EXHIBIT J

 

Form of Tenant Estoppel Certificate

 

TENANT ESTOPPEL CERTIFICATE

 

The undersigned _______________
(“Tenant”) is the Tenant and 470 4th AVENUE INVESTORS LLC, a New York limited liability company,
having an address at c/o Adam America Real Estate, 850 Third Avenue, Suite 13-D, New York, New York 10022 (hereinafter referred
to as the “Landlord”) is the Landlord under that certain lease dated ________________ (the “Lease”)
with respect to Tenant’s occupancy of approximately _______ square feet of the property situated at and known as 470 4th
Avenue, Brooklyn, New York (the “Premises”). In contemplation of Landlord conveying the Premises to 470 4TH
AVENUE FEE OWNER, LLC (“Buyer”), Tenant does hereby certify and warrant to Buyer and its lenders, if any,
and their respective successors and assigns that:

 

1.          The
Lease is in full force and effect, has not been modified or amended, and is binding and enforceable as against Tenant in accordance
with its terms. A true, correct and complete copy of the Lease is attached hereto as Exhibit A.

 

2.          The
commencement date of the Lease is _________. Tenant has taken possession of the space demised under the Lease. All alterations,
improvements and work to be performed by Landlord, if any, have been completed in a manner fully satisfactory to Tenant. The termination
date of the Lease is ______________.

 

3.          The
monthly rent under the Lease is $___________. The base rent, additional rent and all other charges under the Lease have been paid
by Tenant through the period ending __________________. No prepayment of rent under the Lease more than one month in advance has
been made to date or will be without Buyer’s written consent.

 

4.          Neither
Tenant nor Landlord are in breach of default under the Lease, and Tenant knows of no event which, with the passage of time or the
giving of notice or both, would constitute a breach or default under the Lease by Tenant or Landlord.

 

5.          Neither
Tenant nor Landlord has commenced any action or received any notice for the purpose of terminating the Lease.

 

6.          There
are no offsets, defenses, abatements, claims, counterclaims or deductions with respect to the payment of base rent, additional
rent or any other sums payable under the Lease.

 

7.          This
Agreement shall be binding upon Tenant and its successors and assigns and shall inure to the benefit of and be enforceable by Buyer
and its lenders and their respective successors, assigns and designees.

 

    	 	J-1	 

     

    

  

IN WITNESS WHEREOF, Tenant
has duly executed, acknowledged and delivered this Certificate as of the date set forth below.

 

	 	TENANT
	 	 	 
	 	By:	 
	 	Dated:	 

 

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

 

On the ______ day of _____________,
20__, before me, the undersigned, a Notary Public in and for said State, 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 the he/she executed the same in his/her capacity, and that by his/her signature on the instrument, the individual,
or the person upon behalf of which the individual acted, executed the instrument.

 

	 	 
	 	Notary Public

 

    	 	J-2	 

     

    

  

Exhibit A

 

Lease

 

    	 	J-3	 

     

    

  

EXHIBIT K

 

8-K AUDIT REQUIREMENTS

 

For the period of time commencing on the Effective
Date and continuing through the last day of the third month following Closing, Seller shall, from time to time, upon reasonable
advance notice from Buyer, use commercially reasonable efforts to provide Buyer and its representatives, agents and employees with
access to information which is relevant and reasonably necessary, for the Buyer’s outside third party accountants (the “Accountants”),
to enable Buyer and its Accountants to prepare financial statements in compliance with any and or all of (a) Rule 3-14 of Regulation
S-X of the Securities and Exchange Commission (the “Commission”); (b) any other rule issued by the Commission
and applicable to Buyer; and (c) any registration statement, report or disclosure statement filed with the Commission by, or on
behalf of Buyer; provided, however, that in any such event(s), Buyer shall reimburse Seller for all out-of-pocket costs and expenses
that Seller incurs in order to comply with the foregoing requirement. Seller acknowledges and agrees that the following is a representative
description of the information and documentation that Buyer and the Accountants may require in order to comply with (a), (b) and
(c) above. Seller shall provide the following information, to the extent the same is available (capitalized terms not defined herein
shall have the meanings as ascribed to such terms in the Agreement to which this Exhibit is attached):

 

		1.	Rent rolls for the calendar months from January 2017
through the calendar month in which Closing occurs, to the extent applicable;

		2.	Statement of operations for the 2017 calendar year;

		3.	Most currently available real estate tax bills;

		4.	Schedule of operating expenses for the calendar months
from January 2017 through the calendar month in which Closing occurs;

		5.	Access to Seller’s invoices with respect to expenditures
made during the final fiscal year; and

		6.	Access (during normal and customary business hours) to
responsible personnel to answer accounting questions.

 

Nothing herein shall require Seller to conduct its own audits or
generate any requested materials that are not in its possession, custody or control.

 

The provisions of the foregoing information shall be for informational
purposes only, shall not be deemed to be representations or warranties under this Agreement, and shall not expose Seller to any
liability on account thereof.

 

Upon at least thirty (30) days prior written notice and not more
than once during the three (3) month period, upon Buyer’s request, Seller shall on a one (l)-time basis only, make Seller’s
books, records, existing supporting invoices and other existing substantiating documentation relating solely to the Subject Premises,
that are not deemed by Seller to be privileged, available to Buyer for inspection, copying and audit by Buyer’s designated
accountants, at the expense of Buyer. This obligation shall survive the Closing for a period of three (3) months following the
Closing and shall not be merged with any instrument of conveyance delivered at the Closing.

 

    	 	K-1	 

     

    

  

EXHIBIT M

 

Form of TCO

 

A temporary certificate
of occupancy for the Subject Premises permitting uses that include (i) residential use listed in Use Group 2 as set forth in the
Zoning Resolution on the cellar through twelfth floor, (ii) commercial uses listed in Section 132-22(a) of the Zoning Resolution
on the ground floor, and (iii) a use listed in Use Group 3 or Use Group 4 as set forth in the Zoning Resolution. Such temporary
certificate of occupancy shall include those conditions set forth on the temporary certificate of occupancy for the Subject Premises
in effect on the date hereof and any other conditions required by the New York City Department of Buildings not inconsistent with
the foregoing.

 

    	 	M-1	 

     

    

  

EXHIBIT N

 

Form of Deed

 

BARGAIN AND SALE DEED WITHOUT 

COVENANT AGAINST GRANTOR’S ACTS

 

THIS INDENTURE, dated as
of ________, 2018, by and between 470 4th AVENUE INVESTORS LLC, a New York limited liability company, having an address
at c/o Adam America Real Estate, 850 Third Avenue, Suite 13-D, New York, New York 10022 (hereinafter referred to as the “Grantor”),
and 470 4TH AVENUE FEE OWNER, LLC, a Delaware limited liability company, having an address at c/o Trinity Place Holdings
Inc., 717 5th Avenue, Suite 1303, New York, New York 10022 (“Grantee”).

 

WITNESSETH, that Grantor
in consideration of the sum of Ten Dollars ($10.00), and other good and valuable consideration paid by Grantee, the receipt and
sufficiency of which is hereby acknowledged by Grantor, does hereby grant and release and assign forever unto Grantee, and the
heirs or successors and assigns of Grantee, all those certain plots, pieces or parcels of land commonly known as 470 4th Avenue,
Brooklyn, New York and located in the County of Kings and State of New York, as more particularly bounded and described in Schedule
A attached hereto and made a part hereof (collectively, the “Land”);

 

BEING and intended to the
same premises as described in a deed conveyed to the Grantor dated __________ and recorded ________________ in the Office of the
City Register of the City of New York, Kings County, CRFN ____________________;

 

TOGETHER with the building(s)
now located or hereafter erected on the Land (the “Building”) and any and all other fixtures and improvements
now located or hereafter erected on the Land (the Building and such other fixtures and improvements being hereinafter collectively
referred to as the “Improvements”);

 

TOGETHER with all right,
title and interest, if any, of Grantor in and to the land lying in the bed of any street, highway, road or avenue, opened or proposed,
public or private, in front of or adjoining the Land, to the center line thereof, any rights of way, appendages, appurtenances,
easements, sidewalks, alleys, gores or strips of land adjoining or appurtenant to the Land and used in conjunction therewith, and
any award or payment made or to be made in lieu of any of the foregoing or any portion thereof and any unpaid award for damage
to the Land or any of the Improvements by reason of change of grade or closing of any street, road or avenue (the foregoing rights,
together with the Land and the Improvements being hereinafter referred to, collectively, as the “Premises”);

 

TO HAVE AND TO HOLD the
Premises herein granted, or mentioned and intended so to be, unto Grantee, and the heirs, successors and assigns of Grantee, forever.

 

AND Grantor, in compliance
with Section 13 of the Lien Law, covenants that Grantor 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 improvements and will apply
the same first to the payment of the cost of improvements before using any part of the total of the same or any other purpose.

 

[SIGNATURE PAGE FOLLOWS]

 

    	 	N-1	 

     

    

  

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

 

	 	GRANTOR:
	 	 	 
	 	470 4th AVENUE INVESTORS LLC
	 	 	 
	 	By:  	 
			Name:
	 	 	Title:

 

ACKNOWLEDGMENTS

 

	
        

        State of New York
	)
	County of	)

 

On the ___ day of _______ in the year 2018
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 me the within instrument and acknowledged to me that he/she/they
executed the same in her/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.

 

	 	 
	(Signature and office of individual taking acknowledgment)	 

 

    	 	N-2	 

     

    

  

EXHIBIT A TO DEED

 

Legal Description

 

Lot 43

All that certain plot, piece or parcel of land situate, lying and
being in the Borough of Brooklyn, County of Kings, State of New York bounded and described as follows:

 

BEGINNING at the corner formed by the intersection of the northwesterly
side of 4th Avenue and the southeasterly side of 11th Street;

 

RUNNING THENCE northwesterly along the southeasterly side of 11th
Street, 105 feet 9 inches to a point; THENCE TURNING and running easterly, on a line parallel with 4th Avenue, 120 feet 0 inches
to a point;

 

THENCE TURNING and running southeasterly, on a line parallel with
10th Street, 105 feet 9 inches to the northwesterly side of 4th Avenue;

 

THENCE TURNING and running southwesterly along the northwesterly
side of 4th Avenue, 120 feet 0 inches to the point and place of BEGINNING.

 

    	 	N-3	 

     

    

  

BARGAIN AND SALE DEED

WITHOUT COVENANT AGAINST GRANTOR’S
ACTS

 

470 4th AVENUE INVESTORS LLC 

 

TO

 

470 4TH AVENUE FEE OWNER, LLC

 

	Block:	1015
	Lot:	43
	County:	Kings
	Address:	470 4th Avenue
	 	Brooklyn, New York
	 	 
	RECORD AND RETURN TO: 
	 
	Kramer Levin Naftalis & Frankel LLP
	1177 Avenue of the Americas
	New York, New York 10036
	Attn: James P. Godman, Esq.

 

    	 	N-4	 

     

    

  

EXHIBIT O

 

Form of Notice to Tenants

 

TRANSFER NOTICE

 

To: All Tenants of 470 4th Avenue, Brooklyn, New York:

 

Please be advised that
above-referenced property has, on the date hereof, been sold by the undersigned Seller to 470 4th Avenue Fee Owner, LLC.

 

All future rental payments,
including payments for any and all statements on hand, should be made as follows:

 

If you have any questions,
notify the ___________________ at the above address.

 

Dated: ____________

 

	 	470 4th AVENUE INVESTORS LLC
	 	 	 
	 	By:	 
	 	 	Name:
	 	 	Title:

 

    	 	O-1	 

     

    

  

EXHIBIT P

 

Form of Assignment of Warranties

 

ASSIGNMENT OF WARRANTIES

 

ASSIGNMENT OF WARRANTIES
(this “Assignment”) made as of the ___ day of ____________, 2018 by and between 470 4th AVENUE
INVESTORS LLC, a New York limited liability company, having an address at c/o Adam America Real Estate, 850 Third Avenue, Suite
13-D, New York, New York 10022 (hereinafter referred to as the “Assignor”), and 470 4TH AVENUE FEE OWNER,
LLC, a Delaware limited liability company, having an address at c/o Trinity Place Holdings Inc., 717 5th Avenue,
Suite 1303, New York, New York 10022 (hereinafter referred to as the “Assignee”).

 

WHEREAS, Assignor has simultaneously
herewith conveyed to Assignee all of Assignor’s right, title and interest in and to the premises commonly known as and located
at 470 4th Avenue, Brooklyn, New York (the “Premises”), and in connection therewith, Assignor has agreed to
assign to Assignee all of Assignor’s right, title and interest in and to any warranties and/or guaranties relating to the
Premises, including all of Assignor’s rights, title and interest, if any, to all contractors’, suppliers’, materialmen’s
and builders’ guarantees and warranties of workmanship and/or materials, and all other warranties and guaranties, if any,
in force and effect with respect to the Premises as of the date hereof (collectively, “Warranties”).

 

NOW, THEREFORE, in consideration
of the sum of Ten Dollars ($10.00) and other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged,
the parties hereto hereby agree as follows:

 

1.          Assignor
hereby assigns unto Assignee, all of the right, title and interest, if any, of Assignor in and to the Warranties. The execution
of this Assignment shall not be deemed to constitute a representation or warranty by Assignor that Assignor has the right to transfer
any right, title or interest in any of the Warranties or that Assignee shall be entitled to receive the benefit of any of such
Warranties;

 

TO HAVE AND TO HOLD the same
unto Assignee, its successors and assigns from and after the date hereof.

 

2.          This
Assignment shall be binding on Assignor and its successors, assigns and legal representatives and shall inure to the benefit of
the Assignee and its successors, assigns and legal representatives.

 

3.          Assignee
hereby accepts the assignment of the Warranties.

 

4.          This
Assignment may be executed in separate counterparts, which, together, shall constitute one and the same fully executed Assignment.

 

IN WITNESS WHEREOF, this
Assignment has been duly executed as of the date first above written.

 

    	 	P-1	 

     

    

  

	 	ASSIGNOR:
	 	 
	 	470 4th AVENUE INVESTORS LLC
	 	 	 
	 	By:	 
	 	 	Name:
	 	 	Title:
	 	 	 
	 	ASSIGNEE:
	 	 	 
	 	470 4TH AVENUE FEE OWNER, LLC
	 	 	 
	 	By:	 
	 	 	Name: Steven Kahn
	 	 	Title: Chief Financial Officer

 

    	 	P-2	 

     

    

  

EXHIBIT Q

 

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 470 4TH AVENUE FEE OWNER, LLC (“Transferee”) that withholding of tax is not required upon the disposition
of a U.S. real property interest by [_________________], a [____] limited liability company, (“Transferor”),
the undersigned hereby certifies the following:

 

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

 

2.          Transferor’s
U.S. employer identification numbers are as follows:

 

3.          Transferor’s
office addresses are as follows:

 

Transferor understands
that this certification may be disclosed to the Internal Revenue Service by 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 behalf it is true, correct and complete,
and I further declare that I have authority to sign this document on behalf of Transferor.

 

	 	[_______________]
	 	 	 
	 	By:	 
	 	 	Name:
	 	 	Title:

 

Sworn to and subscribed

before me this ____ day

of ________, 2018

 

	 	 
	Notary Public	 

 

    	 	Q-1	 

     

    

  

EXHIBIT R

 

Form of Title Affidavit

 

TITLE AFFIDAVIT

 

	State of New York	)	DATE: as of _____________, 2018
	 	ss:	TITLE #
	County of	)	 

 

		1.	I am the ______________ of 470 4th Avenue Investors LLC (the “Company”),
the owner of the premises commonly known as 470 4th Avenue, Brooklyn, New York (the “Premises”), being
the same premises acquired by deed dated as of _______________and recorded _______________ as CRFN _________________ in the Office
of the Register of Kings County, which Premises are more particularly described in the Certificate of Title under the above referenced
number (the “Certificate”) issued by Fidelity National Title Insurance Company (the “Title Company”).
We are duly authorized to make this affidavit, having full authority to bind the Company.

 

		2.	Full and complete copies of the Articles of Organization and the Operating Agreement of the Company,
together with any and all amendments thereto, have been provided to the Title Company. There have been no changes in the membership
of the Company since its organization, nor any changes in the Operating Agreement, except as disclosed to the Title Company. The
person executing the closing instruments has the authority to bind the Company.

 

		3.	To my actual knowledge, and except as set forth in the Certificate, there are no Judgments, Federal
Tax Liens, Parking Violation Judgments Environmental Control Board Liens, Environmental Control Fire Liens, Transit Adjudication
Liens, or any other liens against the Company in any jurisdiction nor are there any liens, executions, notices of attachments for
the benefit of creditors or proceedings in bankruptcy court against the Company.

 

		4.	To my actual knowledge, and except as set forth in the Certificate, no work has been done upon
the above Premises by The City of New York nor has any demand been made by The City of New York for any such work that may result
in charges by the New York City Department of Rent and Housing Maintenance Emergency Services or charges by the New York City Department
for Environmental Protection for water tap closings or any related work.

 

		5.	To my actual knowledge, and except as set forth in the Certificate, no inspection fees, permit
fees, elevator(s), sign, boiler or other charges have been levied, charged or incurred that may become liens pursuant to Section
26-128 (formerly Section 643a-14.0) of the Administrative Code of the City of New York, as amended by Local Laws 10 of 1981 and
25 of 1984, and Section 27-4029.1 of the Administrative Code of the City of New York as amended by LL 43, 1988 or any other section
of Law.

 

    	 	R-1	 

     

    

  

		6.	To my actual knowledge, and except as set forth in the Certificate, there has been no work performed
by any agency of The City of New York to cure problems under the New York City Hazardous Substances Emergency Response Law that
may become a lien against the Premises pursuant to the aforementioned statute.

 

		7.	That there are no tenants or persons in possession (collectively, the “Tenants”) of
the Land except for those as set forth on Exhibit A hereto. There are no options or rights of first refusal to purchase in favor
of any of the Tenants.

 

		8.	That this affidavit is executed to induce Title Company to issue a policy of title insurance covering
said premises free and clear of the aforesaid, knowing that they will rely on the statements herein made. Affiant hereby indemnifies
and agrees to save harmless Title Company against any damages or expense, including reasonable attorneys’ fees, sustained
as a result of any of the foregoing matters not being true and accurate.

 

	 	[_________________]
	 	 	 
	 	By:	 
	 	 	Name:
	 	 	Title:

 

Sworn to before me

this ____day of ______, 2018

 

	 	 
	Notary Public	 

 

    	 	R-2	 

     

    

 

EXHIBIT C

 

Arbitration

 

The provisions of Section 3 supersede
any law applicable to the Option Subject Premises governing the effect of fire or other casualty in contracts for real property.
Any disputes under Section 3 as to the cost of repair or restoration or the time for completion of such repair or restoration
shall be resolved by expedited arbitration before a single arbitrator in New York, New York acceptable to both Owner and Optionee
in their reasonable judgment in accordance with the rules of the American Arbitration Association; provided, that if Owner and
Optionee fail to agree on an arbitrator within five (5) days after a dispute arises, then either party may request the office of
the American Arbitration Association located in New York, New York to designate an arbitrator. Such arbitrator shall be an independent
architect or engineer who is impartial and has no existing or historical personal professional relationship with Owner, Optionee
or their respective affiliates, having at least ten (10) years of experience in the construction of multi- family apartment buildings
in Brooklyn, New York. The determination of the arbitrator shall be conclusive and binding upon the parties. The costs and expenses
of such arbitrator shall be borne equally by Owner and Optionee.

 

    	 	C-1	 

     

    

 

EXHIBIT D

 

Permitted Encumbrances

 

		1.	Terms, Covenants, Restrictions Easements and Agreement contained in a Zoning Lot Development and Easement Agreement made by
and between Kenneth Juris and the Pauline Samuel’s Living Trust (Owner) and Fourth Eleventh Development LLC (Developer),
dated as of 2/4/2014 and recorded 2/26/2014 as CRFN 2014000070415.

 

		2.	Declaration of Zoning Lot Restrictions made by Kenneth Juris, the Pauline Samuel’s Living Trust and Fourth Eleventh Development
LLC dated as of 2/4/2014 and recorded 2/26/2014 as CRFN 2014000070417.

 

		3.	Zoning Lot Description and Ownership Statement made by 470 4th Avenue Investors LLC, dated 2/25/2014 and recorded 3/3/2014
as CRFN 2014000073663.

 

		4.	Zoning Lot Certification made by Riverside Abstract, LLC, as agent for Fidelity National Title Insurance Company, dated 2/27/2014
and recorded 3/7/2014 as CRFN 2014000081121.

 

		5.	Certificate Pursuant to Zoning Lot Subdivision D dated 2/27/2014 and recorded 3/3/2014 as CRFN2014000073664.

 

    	 	D-1	 

     

    

 

EXHIBIT E

 

Service Agreements

 

		1.	Full Service Maintenance Contract dated July 13, 2017 between Major Elevator Corp. and Adam America Real Estate;

 

		2.	Building Link agreement dated June 01, 2017 between 470 4th Avenue Investors LLC and BuildingLink.com LLC;

 

		3.	Addendum to Saas Subscription Agreement between Yardi System, Inc. and Adam America LLC dated May 16, 2017;

 

		4.	Service Agreement dated July 10, 2017 between 470 4th Avenue Investors LLC and Spectrum;

 

		5.	Service Agreement dated July 27, 2017 between 470 4th Avenue Investors LLC and Spectrum for virtual doorman services;

 

		6.	Service agreement for Integrated Pest Management signed on July 27, 2017;

 

		7.	Gas allocation metering proposal submitted on July 21, 2016;

 

		8.	Virtual doorman proposal accepted on March 22, 2017;

 

		9.	Standard commercial fire alarm monitoring contract signed on September 8, 2016;

 

		10.	Service agreement for inspection and testing services signed on May 9, 2017.

 

    	 	E-1	 

     

    

  

EXHIBIT I

 

Schedule B to Title Commitment

 

		1.	Taxes, tax liens, tax sales, water rents, sewer rents and assessments. None currently due and payable.

 

		2.	Survey made by NY Land Surveyor P.C. dated August 27, 2008 and last revised June 13, 2017 shows no variations.

 

		3.	Zoning Lot Development and Easement Agreement between Kenneth Juris, an individual Eighty Five Percent (85%) and the Pauline
Samuels Living Trust Fifteen Percent (15%) (Owner) and Fourth Eleventh Development, LLC (Developer) dated as of February 4, 2014
recorded February 26, 2014 as CRFN2014000070415.

 

		4.	Declaration of Zoning Lot Restrictions by and between Kenneth Juris, an individual Eighty Five Percent (85%) and the Pauline
Samuels Living Trust Fifteen Percent (15%) (Owner) and Fourth Eleventh Development, LLC (Developer) dated as of February 4, 2014
recorded February 26, 2014 as CRFN2014000070417.

 

		5.	Notice(s) of Sidewalk Violations to be disposed of:

	Filed: March 7, 1995	No: HWKS027

 

    	 	I-1	 

     

    

  

EXHIBIT K

 

Leasing Incentives

 

		1.	Free move in;

 

		2.	Gift card with value of up to $1500.

 

    	 	K-1	 

     

    

  

EXHIBIT L

 

Form of TCO

 

A temporary certificate
of occupancy for the Subject Premises permitting uses that include (i) residential use listed in Use Group 2 as set forth in the
Zoning Resolution on the cellar through twelfth floor, (ii) commercial uses listed in Section 132-22(a) of the Zoning Resolution
on the ground floor, and (iii) a use listed in Use Group 3 or Use Group 4 as set forth in the Zoning Resolution. Such temporary
certificate of occupancy shall include those conditions set forth on the temporary certificate of occupancy for the Subject Premises
in effect on the date hereof and any other conditions required by the New York City Department of Buildings not inconsistent with
the foregoing.

 

    	 	L-1Exhibit

Exhibit 10.1

Grant No.:                       

REGAL ENTERTAINMENT GROUP
2002 STOCK INCENTIVE PLAN, AS AMENDED
PERFORMANCE SHARE AGREEMENT 

        Regal Entertainment Group, a Delaware corporation (the “Company”), hereby grants performance shares relating to restricted shares of its class A common stock, $.001 par value (the “Common Stock”), to the Grantee named below, the shares of restricted stock subject thereto being subject to achieving the performance criteria and the vesting conditions set forth in the attached agreement (the “Agreement”).  Additional terms and conditions of the grant are set forth in this cover sheet to the Agreement, in the Agreement, and in the Company's 2002 Stock Incentive Plan, as amended (the “Plan”).

	
				
	Grant Date:
	 
	 

	Name of Grantee:
	 
	 

	Grantee's Social Security Number:
	 
	 

	

Maximum No. of Shares of Common Stock 
(150% of Target LTI (defined below)):
	 
	 

	Vesting Date:
	 
	 

	Purchase Price per share of Common Stock:
	 
	$0.001

	 
	 
	 
	 

        By signing this cover sheet, you agree to all of the terms and conditions described in the attached Agreement and in the Plan, a copy of which is also attached.  You acknowledge that you have carefully reviewed the Plan, and agree that the Plan will control in the event any provision of this Agreement should be or appear to be inconsistent.
	
			
	Grantee:
	 
	 

	 
	Name:
	 

	 
	Signature:
	 

	Company:
	 
	 

	By:
	 
	 

	 
	Name
	 

	 
	Signature:
	 

	 
	Title:
	 

Attachment
This is neither a stock certificate nor a negotiable instrument.

REGAL ENTERTAINMENT GROUP
2002 STOCK INCENTIVE PLAN, AS AMENDED
PERFORMANCE SHARE AGREEMENT

	
			
	Award of Performance Shares/Number of Shares of Restricted Stock Issuable upon Achievement of Performance Criteria
	 
	This grant is an award of performance shares (the “Performance Shares”) entitling the Grantee hereof to the number of shares of Common Stock to be determined as set forth below, at the Purchase Price set forth on the cover sheet, which shares of Common Stock when issued will be subject to the vesting conditions described below (such shares when issued and subject to the vesting conditions, the “Restricted Stock”).  The Purchase Price for the Performance Shares and the Restricted Stock is deemed paid by your services to the Company.

The number of shares of Restricted Stock, if any, that may be issued pursuant to the terms of this Agreement shall be calculated based on the attainment of specified performance goals, as set forth on the attached Exhibit A, by the third anniversary of the Grant Date (the “Calculation Date”).  The maximum number of shares of Restricted Stock that may be issued to you hereunder shall be as set forth on the cover sheet, which number has been determined by multiplying __________________ shares (such number of shares, your “Target Long Term Incentive” or “Target LTI”) by 150%.

	Nontransferability and Forfeiture
	 
	Neither your Performance Shares granted hereby nor any shares of Restricted Stock issued hereunder prior to the vesting thereof may be transferred, assigned, pledged or hypothecated, whether by operation of law or otherwise, nor may your Performance Shares or shares of Restricted Stock, if any, be made subject to execution, attachment or similar process.  Except as otherwise provided in this Agreement, if your service terminates for any reason prior to the Calculation Date, you will forfeit your Performance Shares and not have any right to receive any Restricted Stock or Common Stock in respect of this award of Performance Shares.

	Issuance and Vesting of Restricted Stock
	 
	The Performance Shares awarded hereby are evidenced solely by this Agreement and the cover sheet.  The Company will issue any Restricted Stock earned pursuant hereto in your name as of the Calculation Date.

Except as otherwise set forth herein, your right to the Common Stock, after the issuance of the Restricted Stock as of the Calculation Date pursuant to this grant, vests as to 100% of the total number of shares of Restricted Stock issued pursuant to this grant on ___________________, provided you then continue in service (the “Vesting Date”).  If the Vesting Date would otherwise occur during a period in which you are: (a) subject to a lock-up agreement restricting your ability to sell shares of Common Stock in the open market or (b) restricted from selling shares of Common Stock in the open market because you are not then eligible to sell under the Company's insider trading or similar plan as then in effect (whether because a trading window is not open or you are otherwise restricted from trading), the Vesting Date will be delayed until the first date on which you are no longer prohibited from selling shares of Common Stock due to a lock-up agreement or insider trading plan restriction; provided, however, you shall not be deemed to be restricted pursuant to subparagraph (b) above if you have in place at the Vesting Date an enforceable 10b5-1 trading plan.  You cannot vest in more than the number of shares covered by this grant.

	Book Entry Restrictions/Escrow
	 
	Any Restricted Stock issued hereunder may be issued in book entry form.  In such event, the Company shall cause the transfer agent for the shares of its Common Stock to make a book entry record showing ownership for the shares of Restricted Stock in your name subject to the terms and conditions of this Agreement.  The Company shall issue or cause to be issued to you an account statement acknowledging your ownership of the shares of such Restricted Stock.

In the event that certificates are issued evidencing the shares of Restricted Stock issued hereunder, the certificates for the Restricted Stock shall be deposited in escrow with the Secretary of the Company to be held in accordance with the provisions of this paragraph.  Each such deposited certificate shall be accompanied by a duly executed Assignment Separate from Certificate in the form attached hereto as Exhibit B. The deposited certificates shall remain in escrow until such time or times as the certificates are to be released or otherwise surrendered for cancellation as discussed elsewhere herein.  Upon delivery of the certificates to the Company, you shall be issued an instrument of deposit acknowledging the number of shares of Restricted Stock delivered in escrow to the Secretary of the Company.

Not later than 30 days after the Vesting Date, the Company shall release from escrow and deliver to you any certificates representing Common Stock held by it in escrow.

	
			
	Dividend Equivalents
	 
	Upon the Calculation Date or as soon as reasonably practicable thereafter (the “Initial Dividend Payment Date”), provided you then continue in service, the Company shall pay to you in cash a single lump sum amount equal to (1) the total dividends paid by the Company with respect to a single share of Common Stock from the Grant Date to the Calculation Date times (2) the number of shares of Restricted Stock issued hereunder as determined above in respect of the Performance Shares as to which the performance goals have been satisfied as of the Calculation Date.

If the Company pays a dividend with respect to its Common Stock after the Initial Dividend Payment Date, the Company shall pay to you as soon as reasonably practicable thereafter, provided you then continue in service, an amount equal to (1) the amount of such dividend with respect to a single share of Common Stock times (2) the number of shares of Restricted Stock issued hereunder as determined above in respect of the Performance Shares as to which the performance goals have been satisfied as of the Calculation Date.

	Lapse of Common Stock Restrictions on Death, Disability, or Retirement or Termination Without Cause
	 
	Prior to the Calculation Date, if your service is terminated due to death or Disability, you shall be entitled to receive a number of fully vested shares of Common Stock in respect of your Performance Shares equal to the Target LTI, pro-rated for the number of days you were employed from the Grant date to and including the date the termination occurs.  In addition, you shall be entitled to the dividends paid with respect to such shares from the Grant Date to and including the date the termination occurs.  Such shares of Common Stock and dividends shall be paid to you (or your estate) within sixty (60) days of the date of your termination due to death or Disability.

On or after the Calculation Date, your right to any Common Stock hereunder vests as to 100% of the total number of shares of Restricted Stock issued pursuant to this grant, such number as determined on the Calculation Date, if your service is terminated due to death, Disability or Retirement, or by the Company without Cause.

	Forfeiture of Unvested Common Stock
	 
	In the event that your service is terminated on or after the Calculation Date but before the Vesting Date for any reason other than due to death, Disability or Retirement, or by the Company without Cause, you will forfeit to the Company all of the shares of Restricted Stock subject to this grant, which shares if certificated will be in such event surrendered by the Secretary to the Company on your behalf for cancellation.

	Withholding Taxes
	 
	You agree, as a condition of this grant, that you will make acceptable arrangements to pay any withholding or other taxes that may be due as a result of the grant of the Performance Shares, your acquisition of Restricted Stock or Common Stock under this grant, or the payment to you of any dividends hereunder.  In the event that the Company determines that any federal, state, local or foreign tax or withholding payment is required relating to this grant, the Company will have the right to: (1) require that you arrange such payments to the Company; (2) withhold such amounts from other payments due to you from the Company or any affiliate; or (3) cause an immediate forfeiture of shares of Restricted Stock or Common Stock subject to the Performance Shares granted pursuant to this Agreement in an amount equal to the withholding or other taxes due.

	Section 83(b) Election
	 
	If you file an election with respect to the shares of Common Stock covered by this grant under Section 83(b) of the Internal Revenue Code with the Internal Revenue Service, you will immediately forfeit to the Company all of the shares of Common Stock subject to this grant.

	Retention Rights
	 
	This Agreement does not give you the right to be retained by the Company (or any parent, Subsidiaries or affiliates) in any capacity.  The Company (and any parent, Subsidiaries or affiliates) reserves the right to terminate your service at any time and for any reason.

	Shareholder Rights
	 
	You have the right to vote the Restricted Stock and to receive any dividends declared or paid on such Restricted Stock.  Any distributions you receive as a result of any stock split, stock dividend, combination of shares or other similar transaction shall be deemed to be a part of the Restricted Stock and subject to the same conditions and restrictions applicable thereto.  Except as described herein and in the Plan, no adjustments are made for dividends or other rights if the applicable record date occurs before your Restricted Stock certificate is issued or book entry made.

	
			
	Adjustments
	 
	In the event of any stock dividend, stock split, change in the corporate structure affecting the Common Stock, or any change in the corporate structure (including any event contemplated by Section 5(a) of the Plan) that is not a Change in Control, the number or kind of shares covered by this grant may be adjusted pursuant to the Plan so that thereafter, subject to the terms and conditions of the adjusted Awards, such Awards shall entitle the Grantee to receive the kind and amount of securities or property or cash receivable upon any such event by a holder of the number of Shares that would have been receivable with respect to such Award immediately prior thereto. 

Your Performance Shares and Restricted Stock, as applicable, shall be subject to the terms of any such agreement of merger, liquidation or reorganization in the event the Company is subject to such corporate activity.

	Change in Control
	 
	In the event of a Change in Control prior to the Calculation Date, you will be entitled to receive a number of shares of Restricted Stock in respect of your Performance Shares equal to the Target LTI immediately prior to the Change in Control. 

All shares of Restricted Stock issued hereunder in respect of a Change in Control shall for purposes of the Plan be deemed to have been issued and outstanding and shall vest immediately prior to the effective time of any such Change in Control.

In addition, you shall be entitled to the dividends paid with respect to such shares from the Grant Date to the time immediately prior to the effective time of any such Change in Control.  Such dividends shall be paid to you within sixty (60) days of the effective time of any such Change in Control.

	Legends
	 
	All certificates representing the Restricted Stock issued in connection with this grant shall, where applicable, have endorsed thereon the following legend:

“THE SHARES REPRESENTED BY THIS CERTIFICATE ARE SUBJECT TO CERTAIN RESTRICTIONS ON TRANSFER SET FORTH IN AN AGREEMENT BETWEEN THE COMPANY AND THE REGISTERED HOLDER, OR HIS OR HER PREDECESSOR IN INTEREST.  A COPY OF SUCH AGREEMENT IS ON FILE AT THE PRINCIPAL OFFICE OF THE COMPANY AND WILL BE FURNISHED UPON WRITTEN REQUEST TO THE SECRETARY OF THE COMPANY BY THE HOLDER OF RECORD OF THE SHARES REPRESENTED BY THIS CERTIFICATE.”

	Applicable Law
	 
	This Agreement will be interpreted and enforced under the laws of the State of Delaware, other than any conflicts or choice of law rule or principle that might otherwise refer construction or interpretation of this Agreement to the substantive law of another jurisdiction.

	Market Stand-Off
	 
	In connection with any underwritten public offering by the Company of the Company's securities pursuant to an effective registration statement filed under the Securities Act of 1933, for such period as the underwriters may request (such period not to exceed 180 days following the date of the applicable offering), you shall not, directly or indirectly, sell, make any short sale of, loan, hypothecate, pledge, offer, grant or sell any option or other contract for the purchase of, purchase any option or other contract for the sale of, loan, hypothecate, pledge, offer, grant or dispose of or transfer, or agree to engage in any of the foregoing transactions with respect to, any shares of capital stock of the Company covered by this grant without the prior written consent of the underwriters of such public offering.

	The Plan
	 
	The text of the Plan is incorporated in this Agreement by reference.  Certain capitalized terms used in this Agreement are defined in the Plan, and have the meaning set forth in the Plan.

This Agreement, the cover page and the Plan constitute the entire understanding between you and the Company regarding this grant of Performance Shares and any shares of underlying Restricted Stock and Common Stock.  Any prior agreements, commitments or negotiations concerning this grant are superseded.

	
			
	Data Privacy
	 
	In order to administer the Plan, the Company may process personal data about you.  Such data includes, but is not limited to, the information provided in this Agreement and any changes thereto, other appropriate personal and financial data about you such as home address and business addresses and other contact information, payroll information and any other information that might be deemed appropriate by the Company to facilitate the administration of the Plan.

By accepting this grant, you give explicit consent to the Company to process any such personal data.  You also give explicit consent to the Company to transfer any such personal data outside the country in which you work or are employed, including, with respect to non-U.S. resident Grantees, to the United States, to transferees who shall include the Company and other persons who are designated by the Company to administer the Plan.

	Consent to Electronic Delivery
	 
	The Company may choose to deliver certain statutory materials relating to the Plan in electronic form.  By accepting this grant, you agree that the Company may deliver the Plan prospectus and the Company's annual report to you in an electronic format.  If at any time you would prefer to receive paper copies of these documents, as you are entitled to, the Company would be pleased to provide copies.  Please contact the Company Secretary at 865/922-1123 to request paper copies of these documents.

	Stock Ownership Guidelines
	 
	If applicable, your right to sell, exchange, transfer, gift, pledge, alienate or otherwise dispose of the vested shares of Common Stock awarded to you pursuant to this Agreement is subject to your compliance with the stock ownership guidelines (“Stock Ownership Guidelines”) that the Company has adopted as of the Grant Date, a copy of which has been delivered to you together with this Agreement.  The Company shall have the right to enforce the Stock Ownership Guidelines through the use of an escrow arrangement or through restrictions communicated to the Company's transfer agent limiting transfers of your shares of Common Stock.  This provision is not intended to prohibit you from exercising your previously granted stock options of disposing of the shares of Common Stock acquired upon exercise of such options.

By signing the cover sheet of this Agreement, you agree to all of the terms and conditions 
described above and in the Plan.

EXHIBIT A

PERFORMANCE GOALS
AND NUMBER OF SHARES OF RESTRICTED STOCK

	
			
	 
	 
	 

	Actual Performance Percentage *
	 
	Shares of Restricted Stock

	Actual Performance Percentage<90%
	 
	0% of Target LTI

	90% <Actual Performance Percentage<110%
	 
	100% of Target LTI

	Actual Performance Percentage>110%
	 
	150% of Target LTI

*During the first quarter of each year, the Board of Directors will determine a projected Adjusted EBITDA (as defined in the Company's quarterly earnings releases) for such year (the “Annual EBITDA Target”).  During the first quarter of the following year, the Annual EBITDA Target will automatically adjust based upon any differences between forecasted attendance for the prior year and actual attendance for the prior year based on reported nation box office revenue for such year (the “Adjusted Annual EBITDA Target”).  The goal of this year-end adjustment to the Annual EBITDA Target is to neither penalize nor reward the Grantee for non-controllable industry results.

On the Calculation Date, the Compensation Committee of the Board of Directors will determine the “Actual Performance Percentage” by calculating for each of the three fiscal years prior to the Calculation Date the percentage by which the Company's actual Adjusted EBITDA met or exceeded the Adjusted Annual EBITDA Target for each such fiscal year, respectively, and averaging such performance percentages over such three fiscal year period.

By way of illustration, if (x) in year 1 the Company's actual Adjusted EBITDA exceeded the Adjusted Annual EBITDA Target for year 1 by 105%, (y) in year 2 the Company's actual Adjusted EBITDA was 90% of the Adjusted Annual EBITDA Target for year 2, and (z) in year 3 the Company's actual Adjusted EBITDA exceeded the Adjusted Annual EBITDA Target for year 3 by 120%, then the Actual Performance Percentage would be 105% (or 315% divided by 3) and the Grantee would vest 100% of the Target LTI. 

EXHIBIT B

ASSIGNMENT SEPARATE FROM CERTIFICATE

        FOR VALUE RECEIVED,___________________ hereby sells, assigns and transfers to Regal Entertainment Group, a Delaware corporation (the “Company”),______________( _________________________ ) shares of the Company’s class A common stock represented by Certificate No. __________ and does hereby irrevocably constitute and appoint _______________________ to transfer the said common stock on the books of the Company with full power of substitution in the premises.
        
Dated:__________________ , 20_________           
	
			
	 
	 
	 

	 
	 
	Print Name

	 
	 
	 

	 
	 
	Signature

Spousal Consent (if applicable)
                                            
 (Purchaser’s spouse) indicates by the execution of this Assignment his or her consent to be bound by the terms herein as to his or her interests, whether as community property or otherwise, if any, in the shares of class A common stock of the Company.
	
			
	 
	 
	 

	 
	 
	Signature

INSTRUCTIONS: PLEASE DO NOT FILL IN ANY BLANKS OTHER THAN THE SIGNATURE LINE. THE PURPOSE OF THIS ASSIGNMENT IS TO ENABLE THE COMPANY TO CAUSE THE FORFEITURE OF YOUR UNVESTED SHARES AS SET FORTH IN THE AGREEMENT WITHOUT REQUIRING ADDITIONAL SIGNATURES ON THE PART OF PURCHASE

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