Document:

AGREEMENT OF SALE AND PURCHASE

 

between

 

229 W. 36TH STREET PARTNERSHIP
LP,

 

Seller

 

and

 

ARC NY22936001, LLC

 

Purchaser

 

Date: November 8, 2012

 

Property:

 

229 West 36th Street

 

New York. New York 10018

 

 

 

 

    	 

    	 	

    

 

Table
of Contents

 

	 	 	Page
	 	 	 
	ARTICLE 1.	INCLUSIONS IN SALE AND EXCLUSIONS	1
	 	 	 
	1.1.	Inclusions	1
	 	 	 
	1.2.	Exclusions	2
	 	 	 
	ARTICLE 2.	PURCHASE PRICE	2
	 	 	 
	2.1.	Purchase Price	2
	 	 	 
	2.2.	Payment of Purchase Price	2
	 	 	 
	ARTICLE 3.	REPRESENTATIONS AND WARRANTIES	3
	 	 	 
	3.1.	Representations of Seller	3
	 	 	 
	3.2.	Purchaser’s Representations and Warranties	10
	 	 	 
	3.3.	Limitations	13
	 	 	 
	ARTICLE 4.	STATE OF TITLE OF PROPERTY	13
	 	 	 
	4.1.	Permitted Encumbrances	13
	 	 	 
	ARTICLE 5.	TITLE INSURANCE AND ABILITY OF SELLER TO CONVEY	15
	 	 	 
	5.1.	Title Insurance	15
	 	 	 
	5.2.	Title Objections	15
	 	 	 
	5.3.	No Further Action	16
	 	 	 
	ARTICLE 6.	CLOSING COSTS	16
	 	 	 
	6.1.	Purchaser’s Obligations	16
	 	 	 
	6.2.	Seller’s Obligations	16
	 	 	 
	6.3.	Other Costs	17
	 	 	 
	6.4.	Survival	17
	 	 	 
	ARTICLE 7.	ASSIGNMENT AND ASSUMPTION OF CONTRACTS AND LEASES	17
	 	 	 
	ARTICLE 8.	REAL ESTATE TAX ADJUSTMENTS	17
	 	 	 
	ARTICLE 9.	CONFIDENTIALITY	18
	 	 	 
	9.1.	Confidentiality	18
	 	 	 
	9.2.	Return of Information	18
	 	 	 
	9.3.	Survival	18

 

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Table
of Contents

(continued)

 

	 	 	Page
	 	 	 
	ARTICLE 10.	OPERATIONS PRIOR TO CLOSING	18
	 	 	 
	10.1.	Continued Operations	18
	 	 	 
	10.2.	Access to the Property	19
	 	 	 
	10.3.	Leases. Seller agrees that between the Effective Date and the Closing:	19
	 	 	 
	10.4.	Service and Maintenance Agreements	20
	 	 	 
	10.5.	Transfers	20
	 	 	 
	10.6.	Notices	20
	 	 	 
	10.7.	Litigation	20
	 	 	 
	10.8.	Tenant Estoppel Certificates and SNDAs	20
	 	 	 
	10.9.	Section 314 Audit	22
	 	 	 
	ARTICLE 11.	CASUALTY AND EMINENT DOMAIN	23
	 	 	 
	11.1.	Casualty and Risk of Loss	23
	 	 	 
	11.2.	Eminent Domain	24
	 	 	 
	11.3.	Survival	24
	 	 	 
	ARTICLE 12.	ASSESSMENTS	25
	 	 	 
	ARTICLE 13.	CLOSING ADJUSTMENTS	25
	 	 	 
	13.1.	Adjustments and Prorations	25
	 	 	 
	13.2.	Survival	29
	 	 	 
	13.3.	Determination of Closing Adjustments	29
	 	 	 
	13.4.	Net Apportionments and Adjustments	30
	 	 	 
	ARTICLE 14.	CLOSING DOCUMENTS; OBLIGATIONS OF PURCHASER AND SELLER AT CLOSING	30
	 	 	 
	14.1.	Seller’s Obligations at Closing	30
	 	 	 
	14.2.	Purchaser’s Obligations at Closing	32
	 	 	 
	ARTICLE 15.	CONDITION PRECEDENT	32
	 	 	 
	ARTICLE 16.	SALES TAX	33
	 	 	 
	ARTICLE 17.	UNPAID TAXES	33
	 	 	 
	ARTICLE 18.	THE CLOSING	33
	 	 	 
	18.1.	The Closing	33

 

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Table
of Contents

(continued)

 

	 	 	Page
	 	 	 
	ARTICLE 19.	NOTICES	34
	 	 	 
	ARTICLE 20.	DEFAULT	36
	 	 	 
	20.1.	Purchaser’s Default	36
	 	 	 
	20.2.	Seller’s Default	36
	 	 	 
	ARTICLE 21.	CONDITIONS; SURVIVAL	37
	 	 	 
	21.1.	Conditions	37
	 	 	 
	21.2.	Survival	38
	 	 	 
	ARTICLE 22.	SUCCESSORS AND ASSIGNS	38
	 	 	 
	22.1.	Assignment	38
	 	 	 
	ARTICLE 23.	BROKERS	38
	 	 	 
	23.1.	Representation	38
	 	 	 
	ARTICLE 24.	ESCROW	39
	 	 	 
	ARTICLE 25.	[INTENTIONALLY DELETED]	39
	 	 	 
	ARTICLE 26.	MISCELLANEOUS	39
	 	 	 
	26.1.	Existing Mortgage	39
	 	 	 
	26.2.	Merger	39
	 	 	 
	26.3.	Headings	39
	 	 	 
	26.4.	Governing Law	39
	 	 	 
	26.5.	Jurisdiction	40
	 	 	 
	26.6.	Waiver of Venue and Inconvenient Forum Claims	40
	 	 	 
	26.7.	Waiver of Jury Trial	40
	 	 	 
	26.8.	Successors and Assigns	40
	 	 	 
	26.9.	Invalid Provisions	40
	 	 	 
	26.10.	Schedules and Exhibits	40
	 	 	 
	26.11.	No Other Parties	40
	 	 	 
	26.12.	Interpretation	40
	 	 	 
	26.13.	Counterparts; Faxed Signatures	41
	 	 	 
	26.14.	Binding Effect	41
	 	 	 
	26.15.	Recordation	41

 

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Table
of Contents

(continued)

 

	 	 	Page
	 	 	 
	26.16.	Intentionally Omitted	41
	 	 	 
	26.17.	Defined Terms	41
	 	 	 
	26.18.	Singular/Plural	41

 

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EXHIBITS
& SCHEDULES

 

	EXHIBIT 1	Definitions
	EXHIBIT 2	Form of Deed
	EXHIBIT 3	Bill of Sale
	EXHIBIT 4	
        Assignment and Assumption of Service, Maintenance and
Concessionaire Agreements

	EXHIBIT 5	Assignment and Assumption of Landlord’s Interest in Leases
	EXHIBIT 6	Assignment of Licenses and/or Permits
	EXHIBIT 7	Assignment of Warranties and Guarantees
	EXHIBIT 8	Post-Closing Adjustment Letter
	EXHIBIT 9	FIRPTA Certificate
	EXHIBIT 10	Tenant Notice Letter
	EXHIBIT 11	Title Affidavit
	EXHIBIT 12	Assignment of Letters of Credit
	EXHIBIT 13	Escrow Letter
	SCHEDULE A	Description of Land
	SCHEDULE B	Schedule of Leases
	SCHEDULE C	Service and Maintenance Agreements
	SCHEDULE D	Rent Roll and Arrears Report
	SCHEDULE E	Compliance
	SCHEDULE F	Litigation
	SCHEDULE G	Title Report
	SCHEDULE H	Letters of Credit
	SCHEDULE I	Form of Tenant Estoppel Statement
	SCHEDULE J	Security Deposits
	SCHEDULE K	Façade Work
	SCHEDULE L	Permits
	SCHEDULE M	Survey
	SCHEDULE N	[Intentionally Omitted]
	SCHEDULE O	[Intentionally Omitted]
	SCHEDULE P	Pending Real Estate Tax Adjustment

 

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AGREEMENT OF SALE AND
PURCHASE (this “Agreement”) is made and entered into as of November 8, 2012 (the “Effective Date”),
by and between 229 W. 36th Street Partnership LP, a Delaware limited partnership (“Seller”), and ARC NY22936001,
LLC, a Delaware limited liability company (“Purchaser”),

 

W I
T N E S S E T H

 

Seller hereby agrees
to sell and convey to Purchaser, and Purchaser hereby agrees to purchase from Seller, upon the terms and conditions hereinafter
set forth, the Property (as such term is defined in Article 1 hereof).

 

NOW, THEREFORE, in
consideration of the premises and of the mutual covenants and agreements hereinafter set forth, and subject to the terms, provisions
and conditions hereof, Seller and Purchaser hereby covenant and agree as follows:

 

ARTICLE
1.

INCLUSIONS IN SALE AND EXCLUSIONS

 

1.1.Inclusions.
The term “Property” shall mean the following:

 

1.1.1.The land described
in Schedule A annexed hereto, and designated as Block: 786, Lot: 23 in the Borough of Manhattan on the Tax Map of the City
of New York (the “Land”).

 

1.1.2.All of Seller’s
right, title and interest in and to the buildings, structures and improvements, together with the air rights and development rights,
if any, tenements, privileges, easements, rights of way, mineral and water rights, hereditaments and appurtenances thereto belonging
or in any way appertaining, now erected or situated on the Land (collectively, the “Building”). The Building’s
street address is 229 West 36th Street, New York, New York 10018.

 

1.1.3.All of Seller’s
right, title and interest in and to the fixtures, equipment, machinery, supplies, building materials and personal property used
in connection with the operation of the Building and owned by Seller, and not being the property of any space tenant or occupant
at the Building, manager or leasing agent, or any other third party.

 

1.1.4.All right,
title and interest of Seller, if any, in and to any land lying in the bed of any street, road or avenue, opened or proposed, in
front of or adjoining the Land, to the center line thereof, and any strips and gores adjacent to the Land, and all right, title
and interest of Seller in and to any award made or to be made in lieu thereof and in and to any unpaid award for damage to the
Land and Building by reason of change of grade of any street.

 

1.1.5.All written
space leases and other written use, possession, tenancy, occupancy or license agreements, now or hereafter covering offices, stores
and other spaces situate at or within the Building or the Land, and all amendments, modifications and/or assignments thereof, all
of which are listed on Schedule B to be assigned to Purchaser at Closing (the “Leases”), as well as all
lease guaranties delivered in connection therewith, all of which are listed on Schedule B (the “Guaranties”),
and all of the right, title and interest of the landlord under the Leases, and Guaranties, and, subject to the provisions of Section
13.1.10, all security deposits paid or deposited by space tenants or occupants in respect of Leases (individually, a “Tenant”
and collectively, the “Tenants”), applicable to Tenants in possession under the Leases at Closing), which shall
not have been applied in accordance with the terms and conditions hereof.

 

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1.1.6.All right,
title and interest of Seller in and to those certain service contracts, utility agreements, maintenance agreements and other agreements
with respect to the Property listed on Schedule C to be assigned by Seller to Purchaser at Closing (collectively, the “Service
and Maintenance Agreements”); other items of intangible personal property owned by Seller and utilized in and necessary
for the operation of the Property; assignable guarantees or warranties of contractors and materialmen and any rights to claim against
third parties for improper work or materials or damage to the Property except for such work, materials or damage which has been
properly repaired or restored prior to Closing (collectively with the Service and Maintenance Agreements, “Intangible
Personal Property”).

 

1.1.7.All site plans,
architectural renderings, plans and specifications, engineering plans, as-built drawings, floor plans and other similar plans or
diagrams, if any, which (a) relate to the Land and/or the Building and (b) are in Seller’s or Seller’s managing agent’s
possession;

 

1.1.8.Seller’s
right, title and interest, if any, in all licenses, permits, permit applications and warranties, guaranties, indemnities and bonds
which (a) relate to the Building and/or the Land, and (b) are assignable by Seller to Purchaser.

 

1.2.Exclusions.
The term “Property” shall exclude the following:

 

1.2.1.Those existing
causes of action and damage claims of or against Seller, if any.

 

1.2.2.All rights
and interests of Seller as owner of the Property arising prior to the Closing (including but not limited to, tax refunds, casualty
or condemnation proceeds, applied tenant deposits, utility deposits, rent in arrears and rent escalations) attributable to periods
prior to Closing, subject to Articles 11 and 13 hereof, to the extent applicable.

 

ARTICLE
2.

PURCHASE PRICE

 

2.1.Purchase
Price. The purchase price for the Property to be paid by Purchaser to Seller shall be the amount of Sixty Four Million Eight
Hundred Fifty Thousand and 00/100 Dollars ($64,850,000.00) (the “Purchase Price”).

 

2.2.Payment
of Purchase Price. The Purchase Price shall be paid and evidenced as follows:

 

2.2.1.Deposit.

 

    	2

    	 

    

(a)On or
before the date which is two (2) Business Days after the Effective Date, Purchaser shall deliver a deposit to Chicago Title Insurance
Company (Philadelphia, PA) (the “Escrow Agent”) in the sum of Six Million Four Hundred Eighty-Five Thousand
and 00/100 Dollars ($6,485,000.00). The foregoing deposit, to the extent actually deposited by Purchaser with Escrow Agent, together
with all interest accrued thereon are hereinafter referred to as the “Deposit.” Escrow Agent shall hold and
apply the Deposit in accordance with the terms of this Agreement.

 

(b)At Closing,
the Deposit shall be applied to Purchaser’s obligations to pay the Purchase Price, provided that the Deposit shall be returned
by Escrow Agent to Purchaser, within one day of demand by Purchaser, without any notice or authorization being required from Seller
or any other Person, in the foregoing instances:

 

		(i)	When return of the Deposit is called for by the terms of this Agreement; or

 

		(ii)	If Seller (A) either (i) defaults in the performance of its obligations hereunder or (ii) is unable
to perform its obligations under this Agreement for any reason other than default of Purchaser, and (B) Purchaser terminates this
Agreement in accordance with the provisions set forth herein.

 

(c)Escrow
Agent shall place the Deposit in an interest-bearing account permitting immediate withdrawal without a penalty. Interest earned
on the Deposit shall become part of the Deposit and shall be remitted to the party entitled to the Deposit pursuant to this Agreement.

 

2.2.2.The balance
of the Purchase Price (i.e., less the Deposit), as adjusted to reflect net prorations and other adjustments provided for
in this Agreement (the “Cash Balance”), shall be deposited in cash or by wire transfer to a bank account designated
by Escrow Agent on or before Closing and, at Closing, shall be paid toward the Purchase Price at the direction of Seller to the
Escrow Agent.

 

ARTICLE
3.

REPRESENTATIONS AND WARRANTIES

 

3.1.Representations
of Seller. Except, in all cases, for any fact, information or condition disclosed in the Permitted Encumbrances, the Leases,
the Guaranties, any Tenant Estoppel Statement (which must not contradict material representations and warranties herein in order
to be deemed Confirming Estoppels (hereinafter defined)), any of the Schedules attached hereto or which is otherwise known by Purchaser
prior to the Closing or otherwise made available in the virtual deal room maintained by Jones Lang LaSalle with respect to the
Property on October 25, 2012, Seller hereby represents and warrants as of the Effective Date as follows:

 

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3.1.1.Power and
Authority. Seller is a limited partnership duly formed and validly existing under the laws of the State of Delaware. The execution,
delivery and performance of this Agreement by Seller (i) are within Seller’s limited partnership powers and (ii) have been
duly authorized by all necessary limited partnership or other applicable action. This Agreement and all documents which are to
be delivered to Purchaser by Seller at the Closing are, or at the time of Closing will be, duly authorized, executed and delivered
by Seller; are, or at the time of Closing will be, legal, valid and binding obligations of Seller enforceable in accordance with
their terms, subject to general principles of equity and to bankruptcy, insolvency, reorganization, moratorium or other similar
laws presently or hereafter in effect affecting the rights of creditors or debtors generally; and do not conflict with any provisions
of law or regulation to which Seller is subject, violate any provision of any judicial order to which Seller is a party or to which
Seller or the Property is subject. The execution, delivery and performance of this Agreement do not require the consent or approval
of any court, administrative or governmental authority and do not result in the creation or imposition of any lien or equity of
any kind whatsoever upon, or give to any other person any interest or right (including any right of termination or cancellation)
in or with respect to, any material agreement to which Seller is a party or the business or operations of Seller or any of its
properties or assets.

 

3.1.2.Leases.

 

(a)Schedule
B sets forth a true, complete and correct list of all Leases in effect on the Effective Date of this Agreement and Seller has
either original or copies of all Leases and Guaranties in its possession. Seller has delivered or made available to Purchaser true
and complete copies of all Leases. No representation is made as to (i) possible assignments of any Leases not consented to by Seller
for which Seller has no actual knowledge, or (ii) any subleases or underleases not consented to by Seller and for which Seller
has no actual knowledge.

 

(b)Seller
has not received written notice from any of the Tenants requesting the performance of any material repairs, alterations or other
work which has not been completed. Seller has not sent or received any written notice of any material default of any material obligations
on the part of any Tenant or landlord under the Leases which has not been cured. No Tenant is in arrears in the payment of monthly
base rent or additional rent for any period in excess of thirty (30) days, except as set forth on Schedule D. The rents
set forth on Schedule D are the actual rents billed or to be billed by Seller to the Tenants, and the actual amounts
paid or payable by the Tenants. Except as set forth in the Leases, (a) no Tenant is entitled to rental concessions or abatements
for any period subsequent to the scheduled date of Closing, (b) no other or additional renewal or extension options have been granted
to the Tenants and (c) no person, firm, or entity, and none of the Tenants, has the rights in, or rights to purchase or acquire
all, or any part of the Property, including, without limitation, a right of first refusal, right of first offer or option to purchase
or lease with respect thereto other than Purchaser hereunder. None of the Tenants has made any requests for any assignment, transfer,
or subletting in connection with all or a portion of the Building which is presently pending or under consideration by Seller.
To Seller’s knowledge, all of the Leases are in full force and effect in accordance with their respective terms, and none
of the Leases has been modified, amended, renewed or extended except as set forth in Schedule B. No action, proceeding
or arbitration is pending on the date hereof with any Tenant in respect of its tenancy or its Lease.

 

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(c)Seller
represents and warrants to Purchaser that Seller has heretofore billed all Tenants for all base rent and other additional rent
due under the Leases and that all Tenants are current in the payment of same except as set forth on Schedule D.

 

(d)Schedule J
sets forth all Security Deposits, as well as interest earned thereon (including those in the form of Letters of Credit), presently
held by or on behalf of Seller with respect to the Leases. Seller shall not apply any portion of the Security Deposits against
any Tenant default subsequent to the date of this Agreement unless and until the Tenant has vacated the premises pursuant to its
respective Lease.

 

(e)There
are no agreements for the payment of leasing commissions in connection with the Leases or the Property (collectively, the “Brokerage
Agreement”) other than that certain Property Management and Leasing Agreement by and between Seller and CB Richard Ellis,
Inc., dated as of July 24, 2007, as amended by that certain Amendment to Property Management and Leasing Agreement by and between
Seller and CB Richard Ellis, Inc., dated as of [sic], 2009, which will be terminated as of the Closing Date, without expense to
Purchaser. There are no leasing commissions due or to become due under the Brokerage Agreement that have not been paid by Seller.

 

3.1.3.Compliance.
Except as otherwise disclosed on Schedule E attached hereto, Seller has not received any written notice from any municipal,
state, or other statutory or regulatory authority, any board of fire underwriters, improvement association, or architectural committee,
relating to noncompliance with any applicable building code or restriction that has not been corrected.

 

3.1.4.Condemnation.
To Seller’s knowledge, there is no pending or threatened condemnation or eminent domain proceeding affecting any portion
of the Property.

 

3.1.5.Litigation.
To Seller’s knowledge, other than as disclosed on Schedule F, there are no legal actions pending or threatened against
Seller, which, if determined adversely to Seller, would (a) materially impair Seller’s ability to perform its obligations
under this Agreement, (b) impose any material costs, obligations or responsibilities on Purchaser following the Closing, (c) materially
adversely affect any of the Leases or Tenants or (d) materially affect the value of the Property.

 

3.1.6.Copies of
Agreements. The Seller has delivered or made available to Purchaser true, correct and complete copies of the Service and Maintenance
Agreements and the Leases that are in the Seller’s possession or control or which are otherwise readily accessible to Seller.

 

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3.1.7.Façade
Work.

 

3.1.7.1. To Seller’s
knowledge, the only item of work remaining to be performed with respect to the Property in order to bring the Property into legal
compliance sufficient to have the temporary certificate of occupancy for the Property reinstated is the repair or replacement of
certain façade work as detailed in that certain AIA contract between Seller and The Fieldler Companies, Inc. (“Seller’s
Engineer”), dated as of July 23, 2012 (the “Fieldler Contract”), which contract is attached hereto
as Schedule K. “Façade Work” shall mean the repair detailed in the Fieldler contract and any other
work determined by Seller’s Engineer (and reasonably confirmed by Purchaser’s engineer) to be necessary to further
the repair or replacement of the façade such that the temporary certificate of occupancy can be reinstated and the façade
and the areas affected by any work to the façade (including the parapet walls of the north elevation) will be structurally
sound and legally compliant and free from violations of record relating to the condition requiring the Façade Work, including,
without limitation, the costs and expenses associated with such work.

 

3.1.7.2. If the
Façade Work is not completed and a final lien waiver is not obtained from Seller’s Engineer prior to the Closing,
then, at Closing, Seller shall, at Purchaser’s option, either (a) deposit the Façade Escrow Amount (as hereinafter
defined) with the Escrow Agent, or (b) apply the Façade Escrow Amount as a credit against the Purchase Price.

 

3.1.7.3. On or
before December 10, 2012, Seller shall cause Seller’s Engineer to deliver to Purchaser an estimate of the costs and expenses
remaining to complete the Façade Work. Purchaser shall have until December 14, 2012 to review such estimate and to deliver
a estimate from Purchaser’s engineer for the remainder of the Façade Work. If the estimates of Seller’s Engineer
and Purchaser’s engineer are no more than thirty percent (30%) apart, then the amounts shall be added together and divided
by two (2), and the resulting product (the “Work Amount A”) shall be used as the basis for calculating the Façade
Work Amount. If one party provides an estimate and the other party fails to provide an estimate on a timely basis, and such failure
continues for two (2) business days after written notice, then the estimate provided by the one party shall be deemed the Work
Amount A. If the foregoing estimates differ by more than thirty percent (30%), then the parties shall obtain a third estimate from
a licensed structural engineer reasonably acceptable to Seller’s Engineer and Purchaser’s engineer (or if none shall
be designated by December 17, 2012 (despite commercially reasonable efforts by Seller’s Engineer and Purchaser’s engineer
to agree upon a qualified, neutral engineer from candidates offered by either Seller’s Engineer and/or Purchaser’s
engineer prior to December 17, 2012), then Francesco Bruni (AIA, NCARB, LEED AP) of the VSA Group (“VSA Group”)),
by no later than December 20, 2012 and the amount of such estimate (“Work Amount B”) shall be the basis for
the Façade Work Amount (it being agreed that the Work Amount B shall not be higher than the higher of (i) Purchaser’s
engineer’s estimate and (ii) Seller’s Engineer’s estimate or lower than the lower of (x) Seller’s Engineer’s
estimate and (y) Purchaser’s engineer’s estimate). The parties shall share equally in the payment of the costs and
expenses of the third (3rd) engineer, or the VSA Group, as applicable. If an estimate from a third (3rd)
engineer or the VSA Group is not obtained on or before December 20, 2012, then the estimate of the Seller’s Engineer and
the estimate of the Purchaser’s engineer previously obtained pursuant to this Section 3.1.7.3, notwithstanding the fact that
such estimates may be more than thirty percent (30%) apart, shall be added together and divided by two (2) and the resulting product
shall be deemed the Work Amount B. As used herein, “Façade Escrow Amount” shall mean an amount equal
to the product of two times (2x) either Work Amount A or Work Amount B, as applicable.

 

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3.1.7.4. In the
event the Façade Escrow Amount is in excess of $750,000, then Seller shall have the right, at its sole option, to terminate
this Agreement, in which event the Deposit and any interest earned thereon shall be returned to Purchaser and Seller shall reimburse
Purchaser for reasonable out-of-pocket expenses relating to this Agreement, including due diligence expenses and any expenses incurred
in arranging financing to purchase the Property (all of which shall be capped at $150,000) and neither party shall thereafter have
any further right or obligation hereunder, other than surviving obligations expressly set forth herein. If Seller does not elect
to terminate this Agreement as herein provided, then, despite the fact that the Façade Work Amount is in excess of $750,000,
Seller shall be obligated to, at Purchaser’s option, either (a) deposit the Façade Escrow Amount in its entity with
Escrow Agent, or (b) apply the Façade Escrow Amount in its entirety against the Purchase Price, as provided above in Section
3.1.7.2. Notwithstanding any of the foregoing to the contrary, if Seller has elected to terminate this Agreement pursuant to
this Section 3.1.7.4, and Purchaser wishes to proceed to Closing, then Purchaser shall provide notice to Seller of such
intention and the parties shall proceed to Closing and the Façade Work Amount in such situation shall be capped at $750,000,
and such sum shall be provided as a credit against the Purchase Price.

 

3.1.7.5. Seller
agrees to diligently perform the Façade Work in a good and workmanlike manner, at its sole cost and expense (including the
costs of Seller’s Engineer and any expediter that Seller may elect to hire), up until the Closing Date. Seller covenants
and agrees to work in good faith and expeditiously as is commercially possible to undertake and diligently perform the Façade
Work between the Effective Date and the Closing Date. Seller covenants and agrees to provide Purchaser with access to Seller’s
Engineer and observation rights at the Property with respect to the on-going Façade Work between the Effective Date and
the Closing Date. Additionally, Seller covenants and agrees to provide prompt notice to Purchaser of any increase in the scope
of the Façade Work that may be made known to Seller from and after the Effective Date.

 

3.1.7.6. On the
Closing Date, to the extent any Façade Work is remaining, Seller shall assign and Purchaser shall assume (i) the Fieldler
Contract (and, if Purchaser so elects, any expediting contract that Seller may have entered into with respect to the Façade
Work) and (ii) any and all remaining obligations with respect to the Façade Work (other than the deposit of the Façade
Escrow Amount). From and after the Closing Date Seller shall be relieved of any and all obligations relating to the Façade
Work, except as expressly provided for herein. In the event that Purchaser has elected for any Façade Escrow Amount to be
deposited with the Escrow Agent, from and after the Closing Date, Purchaser shall have the right to draw down such funds in its
sole discretion, and any remaining funds shall be the property of Purchaser.

 

3.1.8.RPIE Escrow.
Seller has received a 2010 RPIE Non-Compliance Notice from the New York City Department of Finance, dated as of November 9, 2011,
and as further detailed on Schedule E attached hereto (the “RPIE Notice”). Seller’s potential
liability for the fine described in the RPIE Notice is approximately $53,834 (the “RPIE Fine”). If the RPIE
Fine is not paid pursuant to the RPIE Notice or otherwise waived prior to Closing, an amount equal to $53,834 (the “RPIE
Escrow”) will be deposited with the Escrow Agent to pay the RPIE Fine. Upon written notice from Seller to Escrow Agent,
a copy of which shall be provided to Purchaser, Seller shall direct Escrow Agent to apply the RPIE Escrow to the RPIE Fine or release
the RPIE Escrow to the Seller pursuant to this Section 3.1.8. Notwithstanding anything in the immediately preceding sentence
to the contrary, upon the earlier of (i) receipt by Seller that the RPIE Fine has been waived or (ii) December 31, 2013, the RPIE
Escrow shall be released to Seller to the extent the same is no longer an applicable fine or penalty against the Property.

 

    	7

    	 

    

3.1.9.Foreign
Person. Seller is not a “foreign person” within the meaning of Section 1445(f)(3) of the Internal Revenue
Code.

 

3.1.10.OFAC.
Neither Seller, nor to Seller’s knowledge, any of its direct or indirect beneficial owners is now or shall be at any time
prior to or at the Closing a person or entity with whom (i) a United States citizen, permanent resident alien or person within
the United States, (ii) an entity organized under the laws of the United States or its territories, (iii) an entity wherever organized
or doing business that is owned or controlled by persons specified in clause (i) or (ii) above or (iv) entity having its principal
place of business within the United States or any of its territories (collectively, a “U.S. Person”), is prohibited
from transacting business of the type contemplated by this Agreement, whether such prohibition arises under any relevant United
States law, regulation and executive orders, including lists published by the Office of Foreign Assets Control, Department of the
Treasury (“OFAC”) (including those executive orders and lists published by OFAC with respect to persons or entities
that have been designated by executive order or by the sanction regulations of OFAC as persons or entities with whom U.S. Persons
may not transact business or must limit their interactions or types approved by OFAC or otherwise) or under United Nations, or
other similar laws, regulations, executive orders or guidelines. Seller has taken such measures as are required of Seller under
Applicable Laws to ascertain that the funds being invested by Purchaser in the acquisition of the Property are derived from permissible
sources. Neither Seller nor to Seller’s knowledge any of its direct or indirect beneficial owners is a person or entity with
which a U.S. Person, including a United States Financial Institution as defined in 31 U.S.C. §5312, as amended is prohibited
from transaction business of the type contemplated by this Agreement under any applicable laws. Seller and to its knowledge its
direct and direct beneficial owners are in compliance with the Uniting and Strengthening America by Providing Appropriate Tools
Required to Intercept and Obstruct Terrorism (USA PATRIOT ACT) Act of 2001 as applicable to Purchaser and its direct and indirect
beneficial owners.

 

3.1.11.ERISA.
Seller is not and is not acting on behalf of an “employee benefit plan” within the meaning of Section 3(3) of the Employee
Retirement Income Security Act of 1974, as amended, a “plan” within the meaning of Section 4975 of the Internal Revenue
Code of 1986, as amended or an entity deemed to hold “plan assets” within the meaning of 29 C.F.R. § 2510.3-101
of any such employee benefit plan or plans.

 

3.1.12.Mortgage
Notice. Seller has not received written notice from any holder of any mortgage requesting the performance of any repairs, alterations
or other work, or for the correction of any defaults under any agreements, ordinances, rules or otherwise with respect to the Property
which shall remain uncured on the Closing Date.

 

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3.1.13.Hazardous
Materials. Seller has not received any written notice (i) from any applicable governmental authority of any “hazardous
materials” or “hazardous wastes”, as defined, without limitation, under the Relevant Environmental Laws (hereinafter
defined) at, on, around or under the Property, or migrating from the Property, in violation of any Relevant Environmental Laws;
or (ii) of any pending actions, suits, claims and/or proceedings claiming that Seller, any of the Tenants or the Property is in
violation of any Relevant Environmental Laws. For the purposes hereof, “Relevant Environmental Laws” shall mean any
and all laws, rules, regulations, statutes, orders and directives, whether federal, state or local, applicable to the Property
or any part thereof now or hereinafter in effect, in each case as amended or supplemented from time to time including, without
limitation all applicable judicial or administrative orders, applicable consent decrees and binding judgments relating to the regulation
and protection of human health, safety, the environment and natural resources (including, without limitation, ambient air, surface,
water, groundwater, wetlands, land surface or subsurface strata, wildlife, aquatic species and vegetation), including, without
limitation, the Comprehensive Environmental Response, Compensation and Liability Act of 1980, as amended (49 U.S.C. §6901
et seq.), the Hazardous Material Transportation Act, as amended (49 U.S.C. §§ 1801 et seq.), the Federal Insecticide,
Fungicide, and Rodenticide Act, as amended (7 U.S.C. §§ 136 et seq.), the Resource Conservation and Recovery Act, as
amended (42 U.S. §§ 6901 et seq.), the Toxic Substance Control Act, as amended (15 U.S.C. §§ 2601 et seq.),
the Clean Air Act, as amended (42 U.S.C. §§ 7401 et seq.), the Federal Water Pollution Control Act, as amended (33 U.S.C.
§§ 1251 et seq.) the Occupational Safety and Health Act, as amended (29 U.S.C. §§ 651 et seq.), the Safe Drinking
Water Act, as amended (42 U.S. C. §§ 300f et seq.), Environmental Protection Agency regulations pertaining to Asbestos
(including, without limitation, 40 C.F.R. Part 61, Subpart M, the United States Environmental Protection Agency Guidelines on Mold
Remediation in Schools and Commercial Buildings, the United States Occupational Safety and Health Administration regulations pertaining
to Asbestos including, without limitation, 29 C.F.R. Section 1910.1001 and 1926.58), and any state or local counterpart or equivalent
of any of the foregoing, and any related federal, state or local transfer of ownership notification or approval statutes.

 

3.1.14.Employees.
There are no individuals now working, or at any time during Seller’s ownership of the Property who worked, at the Property
who are or were employed by Seller. Seller shall not employ any employees for the operation or maintenance of the Property without
the Purchaser’s written consent, which consent may be withheld by Purchaser in its sole discretion. Any employees engaged
in the operation or maintenance of the Property are, as of the Effective Date, employed by service providers pursuant to the Service
and Maintenance Agreements or pursuant to that certain Property Management Agreement, dated as of August 1, 2009, by and between
Seller and Grubb & Ellis Management Services, Inc., as the same may have been amended and/or supplemented from time to time
(the “Property Management Agreement”). Seller shall not employ any employees in connection with the operation
or maintenance of the Property on and after the Effective Date and any employees engaged in the operation or maintenance of the
Property shall be employed by one or more of the foregoing third-party service providers or pursuant to the Property Management
Agreement.

 

3.1.15.Permits.
To the best of Seller’s knowledge, there are no open or pending work permits, alteration applications, or requests to change
a certificate of occupancy, temporary or otherwise, other than the permits for the Façade Work and those detailed on Schedule
L attached hereto.

 

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3.1.16.Air Rights;
Development Rights. Seller has not sold, conveyed or otherwise transferred any air rights or other development rights, to the
extent any exist with respect to the Property, and same are intact and being included in this sale to the extent Seller owns them.

 

3.1.17.Assessments.
To the best of Seller’s knowledge, neither the Property nor any part thereof is affected by any real estate tax assessment
or assessments which are or may become payable after the Closing Date.

 

3.1.18.Knowledge.
The term “knowledge,” when used in this Agreement, shall mean only such information as has actually been communicated
to, or learned by Bill Burke, Shawn Veldhouse and/or Michael Fruchtman of Real Estate Capital Partners, (the “Designated
Representative”), each of whom is an authorized representative of Seller and is the person most knowledgeable with respect
to the matters herein represented and warranted. Seller shall not be deemed to have made any representations to Purchaser regarding
the accuracy, completeness, methodology or current status of any report prepared by a third party and provided to Purchaser by
Seller or any such third party. The fact that reference is made to the personal knowledge of the Designated Representative shall
not render the Designated Representative personally liable for any breach of any of the foregoing representations and warranties.

 

3.1.19.Survival.
All representations and warranties of Seller contained in this Section 3.1 shall be restated at Closing, and shall be void
and of no further force or effect whatsoever from and after 270 days from the Closing Date (the “Survival Period”)
and any claim of breach thereof must be in writing and prior to the expiration of the Survival Period or shall be deemed waived.

 

3.1.20.Right to
Adjourn Closing. Seller shall have the right to adjourn the Closing for up to sixty (60) days for the purpose of curing any
default, misrepresentation or incorrect warranty.

 

3.2.Purchaser’s
Representations and Warranties. Purchaser hereby represents, warrants and covenants, as of the Effective Date and as of the
Closing Date, as follows:

 

3.2.1.Power and
Authority. Purchaser is a limited liability company, duly formed and validly existing under the laws of the State of Delaware.
Purchaser has full power and authority to enter into and perform this Agreement in accordance with its terms. The execution, delivery
and performance of this Agreement by Purchaser (i) are within Purchaser’s limited liability company powers and (ii) have
been duly authorized by all necessary limited liability company or other applicable action. Purchaser is not a “foreign person”
within the meaning of Internal Revenue Code Section 1445 and the regulations issued therefore. This Agreement and all documents
executed by Purchaser which are to be delivered to Seller at the Closing are, or at the time of Closing will be, duly authorized,
executed and delivered by Purchaser; are, or at the time of Closing will be, legal, valid and binding obligations of Purchaser
enforceable against Purchaser in accordance with their terms subject to general principles of equity and to bankruptcy, insolvency,
reorganization, moratorium or other similar laws presently or hereafter in effect affecting the rights of creditors or debtors
generally; and do not and at the time of Closing will not (i) violate any provision of any agreement, judicial order, judgment,
decree, statute, law, rule or regulation to which Purchaser is subject, or (ii) conflict with or result in a violation of Purchaser’s
organizational document. The execution, delivery and performance of this Agreement do not require the consent or approval of any
court, administrative or governmental authority and do not result in the creation or imposition of any lien or equity of any kind
whatsoever upon, or give to any other person any interest or right (including any right of termination or cancellation) in or with
respect to, any material agreement to which Purchaser is a party or the business or operations of Purchaser or any of its properties
or assets.

 

    	10

    	 

    

3.2.2.OFAC.
Neither Purchaser, nor to Purchaser’s knowledge, any of its direct or indirect beneficial owners is now or shall be at any
time prior to or at the Closing a person or entity with whom a U.S. Person is prohibited from transacting business of the type
contemplated by this Agreement, whether such prohibition arises under any relevant United States law, regulation and executive
orders, including lists published by OFAC (including those executive orders and lists published by OFAC with respect to persons
or entities that have been designated by executive order or by the sanction regulations of OFAC as persons or entities with whom
U.S. Persons may not transact business or must limit their interactions to types approved by OFAC or otherwise) or under United
Nations, or other similar laws, regulations, executive orders or guidelines. Purchaser has taken such measures as are required
of Purchaser under Applicable Laws to ascertain that the funds being invested by Purchaser in the acquisition of the Property are
derived from permissible sources. Neither Purchaser nor to Purchaser’s knowledge any of its direct or indirect beneficial
owners is a person or entity with which a U.S. Person, including a United States Financial Institution as defined in 31 U.S.C.
§5312, as amended is prohibited from transacting business of the type contemplated by this Agreement under any applicable
laws. Purchaser and to its knowledge its direct and indirect beneficial owners are in compliance with the Uniting and Strengthening
America by Providing Appropriate Tools Required to Intercept and Obstruct Terrorism (USA PATRIOT ACT) Act of 2001 as applicable
to Purchaser and its direct and indirect beneficial owners.

 

3.2.3.Acceptance
of the Property. Purchaser acknowledges that it has thoroughly inspected the Property and all factors relevant to the Property’s
use, including, without limitation, the physical condition of the Property, including the interior and exterior, the structure,
condition of soils, environmental condition, all utilities and all physical and functional aspects of the Property; all operating
records, leases, documents and other material affecting the income and operation of the Property; and all matters relating to title;
together with all municipal and other legal requirements such as taxes, assessments, zoning, use permits, and building codes. PURCHASER
SPECIFICALLY ACKNOWLEDGES AND AGREES THAT, OTHER THAN AS EXPRESSLY SET FORTH HEREIN, SELLER IS SELLING AND PURCHASER IS PURCHASING
THE PROPERTY ON AN “AS IS WITH ALL FAULTS” BASIS AND THAT PURCHASER IS NOT RELYING ON ANY REPRESENTATIONS OR WARRANTIES
OF ANY KIND WHATSOEVER, EXPRESS OR IMPLIED, FROM SELLER, ITS AGENTS, OR BROKERS AS TO ANY MATTERS CONCERNING THE PROPERTY EXCEPT
AS EXPRESSLY SET FORTH HEREIN, INCLUDING WITHOUT LIMITATION: (I) THE QUALITY, NATURE, ADEQUACY AND PHYSICAL CONDITION AND ASPECTS
OF THE PROPERTY, INCLUDING, BUT NOT LIMITED TO, THE STRUCTURAL ELEMENTS, SEISMIC ASPECTS OF THE PROPERTY, FOUNDATION, ROOF, APPURTENANCES,
ACCESS, LANDSCAPING, PARKING FACILITIES AND THE ELECTRICAL, MECHANICAL, HVAC, PLUMBING, SEWAGE, AND UTILITY SYSTEMS, FACILITIES
AND APPLIANCES, THE SQUARE FOOTAGE WITHIN THE IMPROVEMENTS ON THE REAL PROPERTY AND WITHIN EACH TENANT SPACE THEREIN, (II) THE
QUALITY, NATURE, ADEQUACY, AND PHYSICAL CONDITION OF SOILS, GEOLOGY AND ANY GROUNDWATER, (III) THE EXISTENCE, QUALITY, NATURE,
ADEQUACY AND PHYSICAL CONDITION OF UTILITIES SERVING THE PROPERTY, (IV) THE DEVELOPMENT POTENTIAL OF THE PROPERTY, AND THE PROPERTY’S
USE, HABITABILITY, MERCHANTABILITY, OR FITNESS, SUITABILITY, VALUE OR ADEQUACY OF THE PROPERTY FOR ANY PARTICULAR PURPOSE, (V)
THE ZONING OR OTHER LEGAL STATUS OF THE PROPERTY OR ANY OTHER PUBLIC OR PRIVATE RESTRICTIONS ON USE OF THE PROPERTY, (VI) THE COMPLIANCE
OF THE PROPERTY OR ITS OPERATION WITH ANY APPLICABLE CODES, LAWS, REGULATIONS, STATUTES, ORDINANCES, COVENANTS, CONDITIONS AND
RESTRICTIONS OF ANY GOVERNMENTAL OR QUASI-GOVERNMENTAL ENTITY OR OF ANY OTHER PERSON OR ENTITY, (VII) THE PRESENCE OF HAZARDOUS
MATERIALS ON, UNDER OR ABOUT THE PROPERTY OR THE ADJOINING OR NEIGHBORING PROPERTY, (VIII) THE QUALITY OF ANY LABOR AND MATERIALS
USED IN ANY IMPROVEMENTS ON THE REAL PROPERTY, (IX) THE CONDITION OF TITLE TO THE PROPERTY, (X) THE LEASES, SERVICE AGREEMENTS,
OR OTHER AGREEMENTS AFFECTING THE PROPERTY AND (XI) THE ECONOMICS OF THE OPERATION OF THE PROPERTY.

 

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3.2.4.Released
Claims. Purchaser shall rely solely upon Purchaser’s own knowledge of the Property based on its investigation of the
Property and its own inspection of the Property in determining the Property’s physical condition. Purchaser for itself and
for anyone claiming by, through or under Purchaser hereby waives its right to recover from and fully and irrevocably releases Seller,
its employees, officers, directors, representatives, agents, servants, attorneys, affiliates, parents, subsidiaries, successors
and assigns, and all persons, firms, corporations and organizations on its behalf (“Released Parties”) from
any and all claims that it may now have or hereafter acquire against any of the Released Parties for any costs, loss, liability,
damage, expenses, demand, action or cause of action arising from or related to any construction defects, errors, omissions or other
conditions, known or unknown, latent or otherwise, including environmental matters, affecting the Property, or any portion thereof.
Without limiting the foregoing, this release includes claims of which Purchaser is presently unaware or which Purchaser does not
presently suspect to exist which, if known by Purchaser, would materially affect Purchaser’s release to Seller.

 

Seller has given Purchaser
material concessions regarding this transaction in exchange for Purchaser agreeing to the provisions of this Section which shall
survive the Closing and shall not be merged into the Deed.

 

The release under this
Section 3.2.4 shall not apply to any representation, warranty or covenant that expressly survives the Closing.

 

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3.2.5.Survival.
Other than with respect to Section 3.2.3 and 3.2.4, the representations and warranties of Purchaser contained in
this Section 3.2 shall be continuing in nature and shall survive for the length of the Survival Period.

 

3.3.Limitations.
Notwithstanding anything to the contrary contained herein, if the Closing shall have occurred and Purchaser shall not have waived
any applicable rights as set forth above, (a) the aggregate liability of Seller for all breaches of any of Seller’s covenants,
representations, and/or warranties under this Agreement (other than with respect to the Façade Work, which shall be handled
pursuant to Section 3.1.7 hereof) shall not exceed Two Million Nine Hundred Twenty-Five Thousand Dollars ($2,925,000) (the “Liability
Limitation”) and (b) no claim by Purchaser alleging a breach by Seller of any covenant, representation or warranty of
Seller contained herein may be made, and Seller shall not be liable for any judgment in any action based upon any such claim, unless
and until such claim, either alone or together with any other such claims, is for an aggregate amount in excess of Fifty Thousand
Dollars ($50,000.00) (the “Floor Amount”), in which event Seller’s liability on final judgment concerning
such claim or claims shall be for the entire amount thereof, subject to the limitation set forth in clause (a) above; provided,
however, that if any such final judgment is for an amount that is less than or equal to the Floor Amount, then Seller shall have
no liability with respect thereto. During the Survival Period, Seller agrees to maintain a net worth in an amount equal to the
Liability Limitation, which Purchaser acknowledges and agrees may be satisfied by Seller maintaining cash and/or marketable securities
in an account which is evidenced to Purchaser, which account shall not be permitted to be reduced below the amount of the Liability
Limitation at any time during the Survival Period immediately following the Closing Date (or which any timely made claims shall
remain unresolved) without Purchaser’s prior written consent, not to be unreasonably withheld, conditioned or delayed.

 

ARTICLE
4.

STATE OF TITLE OF PROPERTY

 

4.1.Permitted
Encumbrances. Purchaser shall accept title to the Property subject to the following (the “Permitted Encumbrances”):

 

4.1.1.Any and all
present and future zoning restrictions, regulations, requirements, laws, ordinances, resolutions and orders of any city, town or
village in which the Property lies, and of all boards, bureaus, commissions, departments and bodies of any municipal, county, state
or federal sovereign or other governmental authority now or hereafter having or acquiring jurisdiction of the Property or the use
and improvement thereof (such authority is herein called a “Governmental Authority”).

 

4.1.2.The state of
facts shown on the survey last dated June 28, 2007 by Joseph Nicoletti Associates Professional Land Surveyors P.C. (the “Contract
Survey”) attached hereto as Schedule M and any change to such state of facts which would be shown on a current
accurate survey of the Property, or any part thereof, provided no such change materially adversely affects Purchaser’s ability
to use the Building for its present uses.

 

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4.1.3.The Leases
listed on Schedule B annexed hereto, and any extensions, renewals or modifications thereof entered into in accordance with
this Agreement, or new Leases entered into in accordance with this Agreement. Termination of any Lease shall not be deemed an objection
to title but shall otherwise be subject to the express terms and conditions hereof.

 

4.1.4.The covenants,
restrictions, easements, and agreements of record and other matters listed on Schedule G annexed hereto, and such other
covenants, restrictions, easements and agreements of record as of the Effective Date, if any, affecting the Property, or any part
thereof, provided such other covenants, restrictions, easements and agreements of record (i) are not violated by existing structures,
and (ii) do not materially adversely affect the present use of the Building.

 

4.1.5.[Intentionally
deleted.]

 

4.1.6.The Service
and Maintenance Agreements, and any renewals thereof, or substitutions therefor, or additions thereto, provided such renewals,
substitutions and additions are made in the ordinary course of Seller’s business and are terminable by Purchaser without
penalty upon not less than thirty (30) days’ notice.

 

4.1.7.All violations
and/or notes or notices of violations of law or municipal ordinances, orders, or requirements noted in or issued by any Governmental
Authority having jurisdiction against or affecting the Building, except that, other than violations issued with respect to the
Façade Work, Seller shall pay on or before the Closing any and all monetary liens, fines, fees, penalties, and interest
imposed with respect to such notices or violations through the Closing Date that arise from a voluntary action of Seller, up to
an aggregate amount equal to $300,000.00.

 

4.1.8.Any mechanic’s
lien or other lien which is the obligation of a Tenant under any Lease to bond or remove of record (as expressly set forth in such
Lease); provided, however, that Seller shall use commercially reasonable efforts to cause the Tenant to bond or otherwise remove
the lien of record prior to Closing, and further provided that such Tenant is not more than forty five (45) days in arrears in
the payment of rent or additional rent on the Closing Date or then subject to a bankruptcy action (in which event, Seller, may,
at its option, deposit into escrow a sum reasonably sufficient to cause the Title Company to omit the same from Purchaser’s
title insurance policy at Closing).

 

4.1.9.Any mechanic’s
lien or other lien arising by, through or under Purchaser.

 

4.1.10.Real estate
taxes, assessments, business improvement district charges, vault charges and like charges which are not yet then due and payable
(subject to adjustment as hereinafter provided).

 

4.1.11.Any exception
to coverage by the Title Company.

 

4.1.12.Any easement
or right of use created in favor of any public utility company for electricity, steam, gas, telephone, water or other service,
and the right to install, use, maintain, repair and replace wires, cables, terminal boxes, lines, service connections, poles, mains,
facilities and the like, upon, under and across the Property, provided same (i) are not violated by existing structures; and (ii)
do not materially adversely affect the present use of the Building.

 

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4.1.13.The printed
exceptions contained in the jacket of title insurance policy then issued by the Title Company which shall insure Purchaser’s
title.

 

4.1.14.Possible lack
of right to maintain vaults, fences, retaining walls, chutes, cornices and other installations encroaching beyond the property
line and possible variance between the record description and the tax map.

 

ARTICLE
5.

TITLE INSURANCE AND ABILITY OF SELLER TO CONVEY

 

5.1.Title Insurance.
Purchaser acknowledges receipt of a copy of a title report dated September 10, 2012 (the “Contract Title Report”)
issued by Chicago National Title Insurance Company (the “Title Company”) and the Contract Survey, and agrees
to order a continuation of the Contract Title Report or new title report from the Title Company or any reputable title insurance
company selected by Purchaser and an update of the Contract Survey within ten (10) days of the Effective Date. With respect to
any continuation of the Contract Title Report (or any other title report obtained by Purchaser from the Title Company) or an updated
Contract Survey, Purchaser shall deliver to Seller’s attorneys, Dechert LLP, 2929 Arch Street, Philadelphia, PA 19104, Attention:
Jay L. Zagoren, a copy of such continuation (or other title report of update thereof) or updated survey together with a written
statement by Purchaser of any objections to title which have appeared for the first time in such continuation (or other title report
or update thereof) or on such updated survey (a “Subsequent Title Objection”), within ten (10) days of receipt
of such continuation or updated survey (or within ten (10) days of the Effective Date, if heretofore obtained by Purchaser), but
in no event later than fifteen (15) days prior to the Closing Date, unless such change of circumstances occurred or was recorded
or discovered by the Title Company within such fifteen (15) day period. The failure by Purchaser to deliver any of the aforementioned
documents to Seller’s counsel within the time period specified in this Section 5.1 shall constitute a waiver by Purchaser
of any and all Subsequent Title Objections contained in the document not so delivered. In the event Purchaser sends a written statement
to Seller setting forth one or more Subsequent Title Objections which Seller is unable to remedy prior to the Closing Date, Purchaser
hereby grants to Seller a reasonable adjournment of the Closing Date (subject to Section 3.1.20) during which time Seller
may attempt to remedy same.

 

5.2.Title Objections.
If there are any liens, charges, easements, agreements of record, encumbrances, judgments or other objections to title, other than
(a) the Permitted Encumbrances and (b) Subsequent Title Objections which are not waived in accordance with the provisions of Section 5.1
(collectively, “Title Objections”), which (i) were voluntary or consensual in nature; or (ii) are not of the
type described in clause (i) of this sentence, but are removable by the payment of an ascertainable sum not to exceed in the aggregate
Seven Hundred Fifty Thousand Dollars ($750,000.00) (the “Maximum Amount”), then Seller shall cause such Title
Objections to be removed; or (iii) are not of the type described in clauses (i) or (ii) of this sentence, then Seller shall use
reasonable efforts to cause such Title Objections to be removed, provided that such reasonable efforts shall not require the payment
of money in excess of the Maximum Amount or the institution of litigation. If Seller fails to remove any Title Objection(s) in
accordance with the provisions of the immediately preceding sentence, or if there exist any Title Objection(s) which Seller is
not obligated to remove pursuant to the immediately preceding sentence, Purchaser, nevertheless, may elect, in its sole and absolute
discretion (at or prior to Closing) to consummate the transaction provided for herein subject to any such Title Objection(s) as
may exist as of the Closing Date, with a credit allocated against the Cash Balance payable at the Closing equal to the sum necessary
to remove such Title Objection(s), not to exceed the Maximum Amount (in the event of a Title Objection of the type described in
clause (ii) or clause (iii) of the immediately preceding sentence); provided, however, if Purchaser makes such election, Purchaser
shall not be entitled to any other credit, nor shall Seller bear any further liability, with respect to any Title Objection(s)
of the type described in clause (ii) or clause (iii) of the immediately preceding sentence, but Seller shall remain fully liable
for the cost of removing any Title Objection(s) of the type described in clause (i) of the immediately preceding sentence. The
immediately preceding sentence shall survive the Closing. If Purchaser shall not so elect, Purchaser may terminate this Agreement
and Seller’s sole liability thereafter shall be to cause the Deposit, together with any interest earned thereon while in
escrow, to be refunded to Purchaser, and, upon the return of the Deposit and any such interest, this Agreement shall be terminated,
and the parties hereto shall be relieved of all further obligations and liability under this Agreement, other than with respect
to the provisions of this Agreement which expressly survive a termination of this Agreement.

 

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5.3.No Further
Action. Except as expressly set forth in Sections 5.1 and 5.2 hereof, nothing contained in this Agreement shall
be deemed to require Seller to take or bring any action or proceeding or any other steps to remove any Title Objections, or to
expend any moneys therefor, nor shall Purchaser have any right of action against Seller, at law or in equity, for Seller’s
inability to convey title in accordance with the terms of this Agreement.

 

ARTICLE
6.

CLOSING COSTS

 

6.1.Purchaser’s
Obligations. Purchaser shall pay the costs of examination of title and any owner’s policy of title insurance to be issued
insuring Purchaser’s title to the Property, as well as all other title charges, survey updates, survey fees, and any and
all other costs or expenses incident to the recordation of the Deed.

 

6.2.Seller’s
Obligations. Seller shall pay the following amounts payable in connection with the transfer of the Deed:

 

		(i)	the amount imposed pursuant to Article 31 of the New York State Tax Law (the “Tax Law”);
and

 

		(ii)	any amount due in connection with the Real Property Transfer Tax imposed by Title 11 of Chapter
21 of the Administrative Code of the City of New York.

 

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6.3.Other Costs.
Except as otherwise provided in this Agreement, all other closing costs shall be allocated to and paid by Seller and Purchaser
in accordance with the manner in which such costs are customarily borne by such parties in sales of similar property in New York
County, State of New York provided, however, that each party shall bear its own attorneys’ fees. Any dispute between Seller
and Purchaser as to which party customarily bears any such closing cost (other than either party’s own attorney’s fees)
may be submitted by either party for resolution to the President of the Real Estate Board of New York, Inc., whose determination
shall be binding upon the parties, provided, however, that in no event shall the Closing Date be adjourned by reason of the submission
of any such dispute to the Real Estate Board of New York, Inc., but the amount in dispute shall be held in escrow by the Escrow
Agent pending resolution of such dispute.

 

6.4.Survival.
The provisions of this Article 6 shall survive the Closing.

 

ARTICLE
7.

ASSIGNMENT AND ASSUMPTION OF CONTRACTS AND LEASES

 

7.1.At the Closing,
Seller shall assign to Purchaser and Purchaser hereby agrees to assume as of the Closing Date, all of the Leases, Guaranties and
Service and Maintenance Agreements, by execution of the respective assignments of the same as provided for in Article 14
hereof. Notwithstanding anything to the contrary contained herein, the Brokerage Agreement, the Property Management Agreement and
that certain Service Contract dated May 1, 2011 (the “Collins Agreement”) between Seller, as owner, and Collins
Buildings Services, Inc. (“Collins”), as contractor, shall each be terminated by Seller as of the Closing and
Seller shall be responsible for all costs and expenses associated therewith, provided that each of Seller and Purchaser shall comply
with Section 22-505 of the Administrative Code of the City of New York, to the extent applicable, and shall cooperate in satisfying
any applicable requirements of such Section 22-505 or other applicable law.

 

ARTICLE
8.

REAL ESTATE TAX ADJUSTMENTS

 

8.1.Other than
disclosed on Schedule P, Seller represents that there are no real estate assessment protests and proceedings affecting the
Property for the fiscal year in which the Closing occurs and for prior years. In the event of any reduction in the assessed valuation
of the Property for any fiscal year, the net amount of any tax savings shall (a) with respect to fiscal years ending prior to the
Closing, be payable to Seller; and (b) with respect to the fiscal year in which the Closing shall occur, after deduction of expenses
and attorneys’ fees, be adjusted between Seller and Purchaser as of the Adjustment Date (as defined in Section 13.1),
in each instance net of sums due to Tenants, which sums shall be paid to each Tenant entitled to same and credited in the adjustments
under Section 13.1.3 to the party who was the landlord during the relevant period (and Seller and Purchaser agree to
reconcile and adjust for any real estate tax payment owed to any Tenants for the period of Seller’s ownership of the Property,
which obligation shall survive the Closing). If a reduction in the assessed value of the Property is granted for the fiscal year
the Closing occurs or any prior fiscal year, and such reduction is in the form of a credit for taxes payable at or after Closing,
Seller shall be entitled to receive a sum equal to such credit (or the pro rata portion of such credit attributable to the period
prior to the Closing) when granted. After the Closing, Purchaser shall control any proceedings for prior, current and all subsequent
tax years. Purchaser shall notify Seller of the fact that Seller has been granted a reduction in the real estate tax assessment
for the Property with respect to the fiscal year in which the Closing occurs within thirty (30) days after the occurrence of such
event. This Article 8 shall survive the Closing.

 

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ARTICLE
9.

CONFIDENTIALITY

 

9.1.Confidentiality.
This Agreement hereby incorporates by reference the Confidentiality Agreement and Purchaser hereby affirms that its obligations
thereunder shall remain in full force and effect after the Effective Date (pursuant to Section 12 of the Confidentiality Agreement).
Notwithstanding anything to the contrary which might be set forth in the Confidentiality Agreement, Seller acknowledges and agrees
that Purchaser shall not be prohibited from disclosing the Evaluation Material and such other information relating to the Property
to the Securities and Exchange Commission (“SEC” and/or any other governmental agencies which impose filing
and/or disclosure obligations on Purchaser and/or Purchaser’s affiliates. For the avoidance of doubt, Evaluation Material
(as defined in the Confidentiality Agreement) shall include any non-public or proprietary material, data and information relating
to the Property that is made available to Purchaser pursuant to or in connection with this Agreement. Nothing contained herein
shall preclude the parties from issuing customary press releases following the Closing.

 

9.2.Return of
Information. In the event the Closing does not occur for any reason and this Agreement is terminated, Purchaser shall promptly
return or destroy to Seller all Evaluation Material in accordance with the Confidentiality Agreement.

 

9.3.Survival.
The provisions of this Article 9 shall survive the termination of this Agreement.

 

ARTICLE
10.

OPERATIONS PRIOR TO CLOSING

 

10.1.Continued
Operations. Between the Effective Date and the Closing, Seller shall continue to operate the Property in its usual and customary
manner, at Seller’s sole cost and expense, subject to the further provisions of this Article 10. Without limiting
the generality of the foregoing, (i) Seller shall provide or cause to be provided all services with respect to the Property and
the Tenants that are required to be provided under the Leases, and shall otherwise comply with all of its obligations under the
Leases including without limitation its repair and maintenance obligations therefor; (ii) Seller shall maintain and keep the Property,
including mechanical equipment, in a condition at least as good as its condition on the Effective Date, reasonable wear and tear
excepted, and (iii) Seller shall maintain the current insurance coverages on the Property.  For the avoidance of doubt,
“usual and customary manner” shall include any repair, remodeling, alteration or capital improvement of the Property
that Seller has commenced or was required by law or by the Leases to have commenced prior to the Effective Date, or, with respect
to leasing and/or legal obligations, the Closing Date.

 

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10.2.Access
to the Property.

 

10.2.1.Access
Requirements. Seller agrees to afford Purchaser (and Purchaser’s designees, agents, employees, consultants, appraisers,
engineers, contractors and prospective lenders) reasonable access to the Property prior to the Closing, at reasonable times upon
reasonable notice to Bill Burke of Real Estate Capital Partners (703-481-7113, bburke@rcap.com) or Glenn Tolchin of Jones Lang
LaSalle (212-812-6424, glenn.tolchin@am.jll.com), provided that Purchaser shall not enter any portion of the Property unless accompanied
by a representative of Seller or the Broker so long as Seller or Broker makes a representative available for such purpose. Purchaser
specifically agrees that neither it, nor its employees or agents, will communicate directly with Seller’s employees or with
Tenants, without prior written approval of Seller, which approval shall not be unreasonably withheld, conditioned or delayed. Notwithstanding
the foregoing, Purchaser is hereby expressly authorized to meet (or otherwise communicate) with American Language Communication,
Center, Inc. (“ALCC”) so long as Seller or the Broker is included on all correspondence between Purchaser and
ALCC, or in the event of a meeting, so long as Seller or the Broker is invited to attend such meeting(s). Purchaser also agrees
that Seller shall not be required to incur any cost or expense or commence any action to afford Purchaser such access.

 

10.2.2.Insurance
Requirements. Purchaser hereby agrees that it shall carry, and shall cause all contractors and vendors entering the Property
on behalf of Purchaser in furtherance of the right of entry granted under this Agreement to carry, commercial general liability
insurance with limits of not less than One Million and No/100 Dollars ($1,000,000.00) combined single limit. Prior to any entry
onto the Property by Purchaser or its agents, employees, consultants or representatives, Purchaser shall provide to Seller certificates
evidencing such insurance coverage.

 

10.3.Leases.
Seller agrees that between the Effective Date and the Closing:

 

10.3.1.Seller shall
not, without Purchaser’s prior written consent, which consent may be granted or withheld in Purchaser’s sole discretion,
(i) permit occupancy of, or enter into any new lease for, space in the Building which is not under lease as of the Effective Date,
or which may hereafter become vacant, (ii) enter into any agreement to modify, extend or renew any Lease, (iii) terminate or accept
the cancellation or surrender of any Lease prior to the end of its term, (iv) commence any litigation against any Tenant or (v)
consent to a request for an assignment or sublease by a Tenant unless Seller shall be obligated by the Lease to so consent (provided,
however, that if Purchaser requests Seller to withhold such consent to an assignment or sublease, Purchaser shall be obligated
to indemnify and hold Seller harmless from any claims, losses or liabilities resulting therefrom).

 

10.3.2.Other than
undertaking the Façade Work in accordance with Section 3.1.7, Seller shall not, without Purchaser’s prior written
consent, which shall not be unreasonably withheld, conditioned or delayed, undertake any new alteration, tenant improvement, addition
or demolition with respect to the Property which is reasonably estimated to cost in excess of $50,000, except in case of emergency,
as required by applicable law, or as required by the specific terms and conditions of the Leases, in which case Seller shall give
Purchaser notice thereto as soon as reasonably practicable. Seller shall be responsible, at Seller’s sole cost and expense,
for any such alterations, tenant improvements, additions or demolition undertaken pursuant to this Section 10.3.2.

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10.4.Service
and Maintenance Agreements. Seller agrees that between the Effective Date and the Closing, Seller shall not, without Purchaser’s
prior written consent, which shall not be unreasonably withheld, conditioned or delayed, (i) enter into any agreement to modify,
extend or renew any Service and Maintenance Agreement or (ii) terminate or accept the cancellation of any Service and Maintenance
Agreement, other than the Collins Agreement prior to the end of its term.

 

10.5.Transfers.
Seller agrees that between the Effective Date and the Closing, Seller shall not, without Purchaser’s prior written consent,
sell, transfer, convey or otherwise dispose of, or pledge, encumber or grant a security interest in any portion of the Property
unless, in the case of the disposition of any personal property, the property in question is promptly replaced with an item or
items of like value, quality and utility or the failure to so replace does not materially adversely affect the Property or the
use or value thereof.

 

10.6.Notices.
Seller shall notify Purchaser reasonably promptly of any of the following matters which occur between the Effective Date and the
Closing Date: (i) written notices of default received or given by Seller with respect to the Leases or any material Service and
Maintenance Agreement; (ii) litigation commenced by Seller, or litigation of which Seller has received written notice commenced
against Seller, in each case with respect to the Property; (iii) written notices of condemnation proceedings against all or any
portion of the Property received by Seller; (iv) written notices received from any governmental authority with respect to the Property;
and (v) casualty losses to the Property.

 

10.7.Litigation.
Seller shall not, without Purchaser’s prior written consent, which shall not be unreasonably withheld, conditioned or delayed,
commence or settle any litigation which would have a material adverse effect on the ownership or operation of the Property, or
impose any monetary or performance obligations on Purchaser, after Closing.

 

10.8.Tenant
Estoppel Certificates and SNDAs.

 

10.8.1.Promptly after
the Effective Date, Seller shall send a written request to each Tenant in accordance with its Lease to furnish a tenant estoppel
statement substantially in the form attached hereto as Schedule I (a “Tenant Estoppel Statement”). Seller
shall deliver to Purchaser a copy of each executed Tenant Estoppel Statement promptly after receipt.

 

10.8.2.Seller agrees
to use its best efforts to deliver to Purchaser at or prior to Closing a Tenant Estoppel Statement from the Tenants collectively
occupying eighty percent (80%) of the leased square feet of the Property, which must include the Material Tenants (hereinafter
defined, the “Tenant Estoppel Requirement”). In the event Seller has not fulfilled the Tenant Estoppel Requirement
on or before the Closing Date and Purchaser does not elect to waive such requirement and proceed with Closing, then Seller may
adjourn the Closing for a period not to exceed sixty (60) days by giving written notice to the Purchaser. If Seller fails to deliver
the Tenant Estoppel Requirement prior to the expiration of such sixty (60)-day period, then Purchaser shall either terminate this
Agreement or waive the Tenant Estoppel requirement and proceed to Closing. In the event Purchaser elects to terminate this Agreement
pursuant to this Section 10.9, then the Escrow Agent shall return the Deposit and any interest earned thereon to Purchaser
and, subject to the provisions herein that survive termination, neither party shall have any further obligation to the other in
connection with this Agreement.

 

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10.8.3.If Seller
does not receive a Tenant Estoppel Statement from each of the Tenants occupying the Building, but otherwise satisfies the Tenant
Estoppel Requirement, then, at Closing, Seller shall deliver a certificate, for the benefit of Purchaser only, for each such Tenant
(a “Seller Estoppel Statement”) in lieu thereof (but specifically excluding the Material Tenants, which must
all deliver Tenant Estoppel Statements) in substantially the same form of the Tenant Estoppel Statement attached hereto as Schedule I
provided that any such Seller Estoppel Statement shall only survive for the Survival Period and any breach of any such Seller Estoppel
Statement shall be subject to the limitations set forth in Section 3.3, and provided further that to the extent a Tenant
Estoppel Certificate is delivered to Purchaser within ninety (90) days following the Closing Date, the Seller Estoppel Statement
related to such tenant shall automatically expire and shall no longer be subject to the terms of this Section 10.8.3.

 

10.8.4.Each Tenant
Estoppel Statement shall be executed and delivered by the Tenant, confirming in all material respects only such matters as an estoppel
is required to address pursuant to the related Lease (a “Confirming Estoppel”), it being understood and agreed
that, for the purposes of this Section 10.8.4, an estoppel shall fail to confirm the applicable matters in all material
respects, and thus fail to be deemed a Confirming Estoppel, if such estoppel (1) evidences that Seller is in default under any
of its material obligations under the Lease, (2) evidences that all specified work required to be performed by the landlord under
the Lease (as distinguished from compliance with general maintenance and repair obligations of Landlord) up to the date of Closing
has not been substantially completed (except in connection with the Façade Work), provided, however, that if there is work
or other unperformed obligations, Seller may either pay such amounts to Tenant on or prior to the Closing Date or credit Purchaser
at Closing against the Purchase Price in such amounts, or Seller may deposit with Escrow Agent such amounts to be held in escrow
pursuant to an escrow agreement reasonably acceptable to Escrow Agent, Seller and Purchaser, which escrow agreement shall provide
that amounts in escrow shall be released to Seller in the event a Confirming Estoppel is received within ninety (90) days after
Closing, otherwise such amounts shall be released to Purchaser (provided that if a credit is given, Seller shall have no liability
to such Tenant or to Purchaser with respect to such claim); (3) evidences that all specified construction allowances or other sums
to be paid to such Tenant (as distinguished from costs or reimbursements related to compliance with general maintenance and repair
obligations of Landlord) in excess of $75,000 have not been paid in full (it being acknowledged that the inclusion of same in a
Tenant Estoppel Statement shall not relieve Seller of its obligations with respect thereto in accordance with the terms and conditions
of this Agreement); or (4) evidences that an action, proceeding or arbitration is then pending with respect of such Tenant’s
tenancy or its Lease.

 

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10.8.5.“Material
Tenants” shall collectively mean ALCC, Early Bird Delivery Systems, LLC, Mobile Health Management Services, Inc., Goldman
Copeland and Spectaguard Acquisition LLC.

 

10.8.6.SNDAs.
Seller shall use commercially reasonable efforts to cooperate in Purchaser’s efforts to obtain subordination, non-disturbance
and attornment agreements from any Tenant that Purchaser may request, provided however that the delivery of executed agreements
from one (1) or more of the Tenants shall not be a condition to Closing and Seller shall have no obligation to deliver executed
agreements to either Tenant or Purchaser at the Closing.

 

10.9.Section
314 Audit. Seller covenants and agrees to reasonably cooperate with Purchaser at Purchaser’s sole cost and expense, in
connection with any information requests made by or on behalf of Purchaser, which are required to complete a so-called “Section
314 audit”, including, but not limited to providing the following (to the extent applicable and in Seller’s possession
or control or which Seller can obtain without undue burden on Seller): (a) monthly historical income statements for the Building
for 2011; (b) monthly historical income statements for the Building for 2012, year to date; (c) five (5) years of annual historical
occupancy and rent for the Building; (d) back-up and supporting documents relating to the items set forth herein (such as bills,
checks, etc.); and (e) the most current financial statement for each of the Tenants to the extent such current financial statements
are in the possession of Seller or its managing agent. In addition, Seller shall reasonably cooperate with Purchaser, at Purchaser’s
cost and expense, both prior to and after the Closing, in connection with any and all reasonable information requests made by or
on behalf of Purchaser, provided that such information is in Seller’s possession or control or which Seller can obtain without
undue burden on Seller, relating to the Premises, including the books and records of the Premises. For the avoidance of doubt,
Purchaser acknowledges that to the extent such information or documentation referred to above does not exist or is not in Seller’s
possession or control, Seller shall not be required to recreate or obtain such documentation or information for Purchaser. The
provisions of this Section 10.9 shall survive the Closing until the third (3rd) year anniversary the Closing
to the extent requests are made of Purchaser by the SEC, provided however, that nothing in this Section 10.9 shall obligate
Seller to remain in existence or prevent the Seller from dissolving after the Closing (subject to Seller’s other obligations
pursuant to this Agreement).

 

10.10.Seller covenants
and agrees to use commercially reasonable efforts to cause Seller’s existing environmental report and property condition
analysis with respect to the Property to be certified to Purchaser and Purchaser’s mortgage lender (if any), which certification
shall be at Purchaser’s expense, and Seller hereby waives any conflict of interest or proprietary rights with respect to
such reports.

 

10.11.Seller covenants
and agrees to use commercially reasonable efforts to cause those deficiencies detailed as item (3) of Schedule E attached
hereto to be remedied prior to the Closing Date, provided, however, that nothing in this Section 10.11 shall be a condition
precedent to Closing.

 

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ARTICLE
11.

CASUALTY AND EMINENT DOMAIN

 

11.1.Casualty
and Risk of Loss. Between the Effective Date and the delivery of the Deed as provided by Section 14.1.1 herein, the
risk of loss or damage to the Property by fire or other casualty, is borne and assumed by Seller. Seller’s assumption of
the risk of loss is without any obligation or liability by Seller to repair the same, except Seller, at Seller’s sole option,
shall have the right to repair or replace such loss or damage to the Property and shall consult with Purchaser and keep Purchaser
fully informed as to any such repair or replacement. Seller agrees to maintain the insurance coverage of the Property existing
on the Effective Date until the Closing. In the event any loss or damage to the Property occurs, and Seller elects to make such
repair or replacement, this Agreement shall continue in full force and effect, and Seller shall be entitled to a reasonable adjournment
of the Closing Date, not to exceed one hundred eighty (180) days in order to make such repair or replacement, as estimated by an
Approved Contractor (defined below). If (i) Seller does not elect to repair or replace any such loss or damage; (ii) Seller elects
to repair and replace such loss or damage but the repair is estimated by an independent, reputable contractor selected by Seller
and reasonably approved by Purchaser (an “Approved Contractor”) to extend beyond one hundred eighty (180) days;
(iii) Seller elects to repair and replace such loss or damage but the cost to repair the Property would exceed Three Million Dollars
($3,000,000) as estimated by an Approved Contractor; or (iv) any of the Leases of a Material Tenant may be terminated as a result
of such damage (unless the applicable Material Tenant shall waive its right to terminate its Lease), then the Purchaser shall have
the following options:

 

11.1.1.Terminate
this Agreement, in which event the Deposit shall be returned to Purchaser and, upon such payment, this Agreement shall be null
and void and the parties hereto shall be relieved and released of and from any further liability with respect to each other, except
with respect to the provisions of this Agreement which expressly survive the termination of this Agreement; or

 

11.1.2.Proceed to
Closing and on the Closing Date Seller shall assign to Purchaser, and Purchaser shall be entitled to receive and keep, all insurance
proceeds payable with respect to such casualty (which shall then be repaired or not at Purchaser’s option and cost), plus
the Purchase Price shall be reduced by an amount equal to the sum of (i) the amount of all insurance proceeds previously paid to
Seller with respect to such casualty (other than for amounts expended by Seller for emergency repairs or for repairs which are
approved by Purchaser (“Approved Repairs”)) and (ii) the deductible amount with respect to the insurance (provided
that if the balance of the casualty loss is less than the deductible, then only the amount of the loss shall be deducted from the
Purchase Price, less the cost of any Approved Repairs previously made by Seller). Seller shall not be required reduce the Purchase
Price by an amount equal to all or any portion of an uninsured loss, other than the deductible. In the event Purchaser elects the
option detailed in this Section 11.1.2, then Seller shall have no obligation to repair or restore the Property.

 

11.1.3.If (i) Purchaser
fails to exercise its option as set forth in Section 11.1 within ten (10) days after the later of notice to Purchaser of
any loss or damage to the Property and the judgment of the Approved Contractor with respect to time and cost, and all Material
Tenants have waived their respective rights to terminate their Leases (if applicable); or (ii) the cost to repair and replace the
damage to the Property (as estimated by the Approved Contractor) would be less than Three Million Dollars ($3,000,000), the period
to repair and replace the damage to the Property, as estimated by the Approved Contractor would be less than one hundred eighty
(180) days and all Material Tenants have waived their respective rights to terminate their Leases (if applicable), then Purchaser
shall be deemed to have exercised the option set forth in Section 11.1.2. If any of the foregoing conditions are not met
and Purchaser has failed to exercise its option set forth in Section 11.1, then this Agreement shall terminate pursuant
to Section 11.1.1.

 

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11.2.Eminent
Domain. If prior to the Closing all or any part of the Property is taken by condemnation or a taking in lieu thereof, the following
shall apply:

 

11.2.1.In the event
a material part of the Property is taken or any of the Leases of a Material Tenant may be terminated as a result of such taking
(unless the applicable Material Tenant shall waive its right to terminate its Lease), Purchaser, by written notice to Seller (effective
only if delivered within ten (10) days after Purchaser receives notice of such taking), may elect to cancel this Agreement prior
to the Closing Date. In the event that Purchaser shall so elect, the Deposit and any interest earned thereon shall be returned
to Purchaser, and upon such payment, this Agreement shall be null and void and the parties hereto shall be relieved and released
of and from any further liability hereunder and with respect to each other, except with respect to the provisions of this Agreement
which expressly survive the termination of this Agreement.

 

11.2.2.In the event
a minor or immaterial part of the Property is taken and all Material Tenants have waived their respective rights to terminate their
Leases (if applicable), neither party shall have any right to cancel this Agreement, and title shall nonetheless close 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, at Closing, (i) turn over and deliver to Purchaser the amount of any award
or other proceeds of such taking to the extent actually collected by Seller as a result of such taking, less the amount of the
actual expenses incurred by Seller in collecting such award or other proceeds and in making repairs to the Property occasioned
by such taking, and (ii) deliver to Purchaser an assignment (without warranty or recourse to Seller) of Seller’s right to
any such award or other proceeds which may be payable subsequent to the Closing Date as a result of such taking.

 

11.2.3.The term “material
part,” as distinguished from a “minor or immaterial part,” as used herein shall mean a portion of the Property
(i) having a value (based upon an appraisal by an appraiser acceptable to Seller, subject to Purchaser’s approval, which
shall not be unreasonably withheld or delayed) in excess of Three Million Dollars ($3,000,000), or (ii) which comprises greater
than ten percent (10%) of the leasable square footage of the Building.

 

11.3.Survival.
This Article 11 shall survive the Closing and is intended to be an express provision to the contrary within the meaning
of Section 5-1311 of the General Obligations Law of the State of New York.

 

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ARTICLE
12.

ASSESSMENTS

 

12.1.If on or after
the Effective Date, the Property or any part thereof shall be or shall have been affected by any real estate tax assessment or
assessments which are or may become payable in one or more installments which are due after the Closing Date, Purchaser agrees
to take title to the Property (without reduction in or adjustment of the Purchase Price) subject to all unpaid installments becoming
due and payable after the Closing Date.

 

ARTICLE
13.

CLOSING ADJUSTMENTS

 

13.1.Adjustments
and Prorations. The following matters and items shall be apportioned or adjusted between the parties hereto as provided herein.
The closing of title to the Property pursuant to this Agreement (the “Closing”), as of 12:01 A.M. of the day
of the Closing shall be defined as the “Adjustment Date”. The foregoing is based upon the Seller having use
of the funds constituting the cash portion of the Purchase Price on the Closing Date, and thus the income and expense for the Closing
Date are for Purchaser’s account.

 

13.1.1.Fixed Rents.

 

(a)Fixed
rents, including charges for each Tenant’s pro rata share of real estate taxes, electricity charged on a “rent inclusion
basis”, and monthly sprinkler charges, fuel charges, water charges and other “additional rent” charges payable
along with fixed rents (“Fixed Rents”) paid or payable by Tenants under the Leases in connection with their
occupancy shall be adjusted and prorated on an if, as and when collected basis. Any Fixed Rents collected by Purchaser or Seller
after the Closing from any Tenant who owes Fixed Rents for periods prior to the Closing, shall be applied: (i) first, in payment
of Fixed Rents owed by such Tenant for the calendar month in which the Closing Date occurs; (ii) second, in payment of Fixed Rents
owed by such Tenant for the period (if any) after the calendar month in which the Closing Date occurs through the end of the calendar
month in which such amount is collected; and (iii) third, after Fixed Rents for all current periods have been paid in full, in
payment of Fixed Rents owed by such Tenant for the period prior to the calendar month in which the Closing Date occurs. Each such
amount, less any costs of collection (including reasonable attorneys’ fees) reasonably allocable thereto, shall be adjusted
and prorated as provided above, and the party who receives such amount shall promptly pay over to the other party the portion thereof
to which it is so entitled. In furtherance and not in limitation of the preceding sentence, with respect to any Tenant which has
paid all Fixed Rents for periods through the Closing, if, prior to the Closing, Seller shall receive any prepaid Fixed Rents or
any other additional rent from a Tenant attributable to a period following the Closing, at the Closing, Seller shall pay over to
Purchaser the amount of such prepaid Fixed Rents.

 

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(b)Purchaser
shall bill Tenants who owe Fixed Rents for periods prior to the Closing on a monthly basis for a period of six (6) consecutive
months following the Closing Date and shall use commercially reasonable efforts to collect such past due Fixed Rents; provided,
however, that Purchaser shall have no obligation to commence any actions or proceedings to collect any such past due Fixed Rents.
Notwithstanding the foregoing, if Purchaser is unable to collect such past due Fixed Rents, Seller shall have the right, upon prior
written notice to Purchaser, to pursue such Tenants to collect Fixed Rent delinquencies (including, without limitation, the prosecution
of one or more lawsuits), but Seller shall not be entitled to evict (by summary proceedings or otherwise) any such Tenants. Any
payment by a Tenant in an amount less than the full amount of Fixed Rents then due and owing by such Tenant, shall be applied first
to Fixed Rents (in the order of priority as to time periods as is set forth in Section 13.1.1(a) above) to the extent of
all such Fixed Rents then due and owing by such Tenant.

 

13.1.2.[intentionally
omitted]

 

13.1.3.Taxes and
Assessments. Real estate taxes, assessments, business improvement district charges and like charges, ad valorem taxes and personal
property taxes, if any, shall be apportioned as of the Adjustment Date on the basis of the fiscal year for which assessed, whether
or not due and payable as of the Closing. If the Closing shall occur before the tax rate or assessment is fixed, the apportionment
of such real estate taxes and personal property taxes, if any, shall be upon the basis of the tax rate for the immediately preceding
year applied to the latest assessed valuation; however, adjustment will be made upon the actual tax amount, when determined. Any
discount received for early payment shall be for the benefit of Seller, and any interest or penalty assessed for late payment shall
be borne by Seller. Real estate taxes shall be treated on an annualized basis even if tax payments made in installments are not
equal for each installment period. Thus, for example, if the installment for the first half of a fiscal year is paid and is higher
than the second half installment, the proration will be based on payment of fifty percent (50%) of the aggregate taxes for such
fiscal year. In the case of special assessments payable in installments, the installment for the Fiscal Year in which the Adjustment
Date occurs will be apportioned as provided above.

 

13.1.4.Deposits.
Tax and utility company deposits, if any, shall be paid by Purchaser to Seller only to the extent such deposits have been transferred
to Purchaser on or before the Closing Date (or, at Seller’s option, Seller shall obtain refunds of the deposits directly
from the taxing authority or utility company, as the case may be).

 

13.1.5.Water and
Sewer Charges. Water charges and sewer rents shall be apportioned as of the Adjustment Date on the basis of the fiscal year
for which assessed, but if there are water meters on the Property, Seller shall supply to Purchaser a water meter reading current
through the Adjustment Date, or if not feasible to so read, to a date not more than thirty (30) days prior to the Adjustment Date,
and the unfixed meter charges based thereon for the intervening period shall be apportioned on the basis of such last meter reading
with a per diem adjustment through the Closing Date based upon the average daily usage shown on such reading. Upon the taking of
a subsequent actual water meter reading, such apportionment shall be readjusted and Seller or Purchaser, as the case may be, will
promptly deliver to the other the amount determined to be due upon such readjustment. If Seller is unable to furnish such prior
meter reading, any reading subsequent to the Closing will be apportioned on a per diem basis from the date of such reading immediately
prior thereto, and Seller shall pay the proportionate charges due up to the Closing Date. Unpaid water meter bills, frontage, sewer
charges and assessments which are the obligations of Tenants in accordance with the terms of their respective Leases shall not
be adjusted, nor shall the same be deemed an objection to title, and Purchaser will take title subject thereto, provided Tenant
shall not be more than forty five (45) days in arrears or subject to a bankruptcy action (in which event, Seller, may, at its option,
place the sum of any amounts then due in escrow with the Title Company for up to six (6) months or pay such amounts in full to
the Title Company).

 

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13.1.6.License
Fees. Amounts paid or payable with respect to assignable licenses and permits, if any, affecting the Property shall be apportioned
as of the Closing Date.

 

13.1.7.Service
and Maintenance Charges. Amounts paid or payable with respect to the Service and Maintenance Agreements shall be apportioned
as of the Adjustment Date.

 

13.1.8.Utilities.
Utility charges, including, but not limited to, electricity, gas, steam, telephone and other utilities (other than such charges
which are the obligation of Tenants under their respective Leases) shall be apportioned as of the Adjustment Date, all prorated
based upon the most current bill unless actual readings are obtained as of the Adjustment Date (Seller hereby agreeing to endeavor
to cause such readings to be obtained) in which case, such actual readings shall govern and each party shall pay the amount billed
to it, respectively.

 

13.1.9.Inventory.
The value of Building inventory and supplies (e.g., soap, cleaning powder, light bulbs, etc.) in unopened containers, if any, in
accordance with an inventory prepared by Seller, is included in the Purchase Price and shall not be credited to Seller.

 

13.1.10.Tenant
Security Deposits.

 

(a)Security
deposits of Tenants (other than those which are marketable securities, letters of credit, or other non-cash items, which shall
be delivered to Purchaser at the Closing with all necessary transfer documents) shall be transferred, at Seller’s option,
either (i) by direct assignment of the bank accounts in which deposited, or (ii) by Seller retaining all rights in the bank accounts
and crediting to Purchaser the amount of the security deposits to be delivered pursuant to this Agreement. In either event, there
shall be maintained or credited to Seller all interest earned or accrued to the Adjustment Date, less such portion of the interest
to which the respective Tenant would be entitled pursuant to its Lease or by law. Security deposits of Tenants held in the form
of marketable securities listed on Schedule H (each a “Letter of Credit” and, collectively, the “Letters
of Credit”) shall be assigned and delivered to Purchaser at Closing, with any interest thereon through the Adjustment
Date credited to Seller, less such portion to which the Tenant would be entitled. Letters of Credit shall, at Seller’s cost
and expense, be assigned and delivered to Purchaser at Closing; provided, however, that if the consent or authorization of the
issuer of any such Letter of Credit is required, the failure to obtain such consent shall not constitute grounds for Purchaser
or Seller to adjourn the Closing, but Seller shall cooperate with Purchaser in obtaining such consent subsequent to the Closing
in accordance with the terms and conditions hereof. As to those Letters of Credits which are not transferred to Purchaser at Closing
(collectively, the “Non-Transferable Letters of Credit”), Seller shall execute at Closing the documentation
necessary to cause the transfer or re-issuance of the Non-Transferable Letters of Credit and Seller and Purchaser shall reasonably
cooperate with each other on the Closing Date and following the Closing so as to effectuate the transfer of same to Purchaser and
cause Purchaser to be the beneficiary thereunder or to obtain a replacement letter of credit showing Purchaser as the beneficiary
thereunder. Until the Non-Transferable Letters of Credit shall be transferred to Purchaser or replaced, as aforesaid, Purchaser
shall hold the same, but upon request may deliver the same to Seller (if necessary), who shall then draw upon the same and deliver
the proceeds to Purchaser or return the same to the applicable Tenant, in each case upon Purchaser’s written instruction.
Seller shall also deliver to Purchaser at Closing such documentation, including, without limitation, sight drafts executed in blank,
as Purchaser shall reasonably require in connection with drawing under the Non-Transferable Letters of Credit in Seller’s
name.

 

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(b)At Closing
Purchaser shall indemnify and hold Seller free and harmless from and against any claim made with respect to an assigned security
deposit, including any Letter of Credit transferred to Purchaser, or a security deposit as to which Purchaser has received a credit.
Seller shall indemnify and hold Purchaser free and harmless from and against any claim made with respect to Seller’s misapplication
of any security deposit, except to the extent that the amount of such security deposit paid to or credited to Purchaser at the
Closing is confirmed in a Tenant Estoppel Statement.

 

(c)Seller
has not applied any security deposit to cure defaults under any of the Leases currently in effect and Seller shall not apply all
or any portion of a Tenant’s security deposit unless such Tenant has vacated its demised premises, without intention to return.

 

(d)In the
event that Seller does not obtain an additional security deposit from Record Press, Inc. in a minimum amount of $23,077.98 on or
before the Closing Date, Seller shall credit the amount of $23,077.98 against the Purchase Price on the Closing Date.

 

13.1.11.Fuel.
Proration shall be made of fuel on the Property on the Adjustment Date, based upon a reading made by Seller’s supplier as
close as obtainable to the Adjustment Date (reasonably adjusted to the quantity present on the Adjustment Date). The value thereof
shall be calculated at Seller’s last cost (including sales tax). If the heating, ventilation or air conditioning for the
Property is provided by a measurable product (e.g. steam or gas) the adjustment will be based on meter readings prorated, if necessary,
to the Adjustment Date, with a per diem adjustment through the Closing Date based upon the average daily usage shown on such reading.

 

13.1.12.Tenant
Improvement Work; Tenant Improvement Allowance. The cost of performing all work and any additional work required to be performed
under Leases executed prior to the Effective Date shall be borne by Seller. In the event any such work shall not be completed prior
to Closing (other than the Façade Work, which is specifically provided for in Section 3.1.7 hereinabove), Purchaser
shall receive a credit against the Purchase Price in an amount equal to the estimated cost to complete such work and to obtain
the necessary approvals therefor, which amount shall be determined by Purchaser’s architect (which architect shall be reasonably
acceptable to Seller) and credited to Purchaser. In addition, to the extent any Tenant is entitled to a tenant improvement allowance,
or landlord’s contribution pursuant to the Leases, the amount of such allowance or contribution shall be credited to the
Purchaser in the full amount provided for in such Lease, less any amounts actually delivered to the Tenant’s prior to the
Closing Date, and Purchaser shall assume the balance of all such obligations. Subject to the approval of Purchaser pursuant to
Section 10.3, the cost of all work and any additional work required under Leases executed from and after the Effective Date
shall be borne by Purchaser. At Closing, Purchaser shall reimburse to Seller all sums theretofore actually paid by Seller to contractors,
materialmen, architects, engineers and other professionals in connection with such work as shall have previously been approved
by Purchaser and shall assume the obligation to pay any outstanding bills for any such work and to pay the cost of any such work
not billed as of the Closing. Purchaser shall indemnify and hold Seller harmless from any loss, claim, damage, liability or expense
arising out of any failure to pay any of such costs assumed by Purchaser hereunder or in connection with the performance of any
such work subsequent to Closing.

 

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13.1.13.Insurance
Premiums. No existing insurance policy shall be assigned to Purchaser, and no adjustment of any insurance premiums shall be
made.

 

13.2.Determination
of Closing Adjustments. The parties hereto agree to make a good faith effort to determine the adjustments and prorations to
be made at Closing, pursuant to this Article 13, at least three (3) Business Days prior to the Closing Date and shall prepare
a preliminary statement setting fourth such adjustments and prorations to be agreed upon and executed by the parties at least three
(3) Business Days prior to Closing Date.

 

13.3.Net Apportionments
and Adjustments.

 

(a)Due
Seller. In the event the net apportionments and adjustments as provided in Section 13.1 result in a payment due Seller,
then such payment shall be made at Closing in the manner as determined by Seller. In the event that despite Purchaser’s good
faith efforts, the parties hereto are unable to determine the amount of the adjustments to be paid to Seller at Closing, if any,
on or before the date which is three (3) Business Days prior to the Closing Date, such amount may be paid by Purchaser to Seller
at the Closing by wire transfer or by cashier’s or bank check, drawn upon a bank which is a member of The New York Clearing
House Association (or any successor organization thereto), made payable to Seller’s direct order.

 

(b)Due
Purchaser. In the event the net apportionments and adjustments as provided in Section 13.1 result in a payment due Purchaser,
then such payment shall be made at Closing by way of a credit against the Cash Balance.

 

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(c)Other.
Except as otherwise provided in this Agreement, the customs regarding title closings, as recommended by The Real Estate Board of
New York, Inc., shall apply to all apportionments.

 

13.4.Survival.
The provisions of this Article 13 shall survive the Closing.

 

ARTICLE
14.

CLOSING DOCUMENTS; OBLIGATIONS OF PURCHASER AND SELLER AT CLOSING

 

14.1.Seller’s
Obligations at Closing. On the Closing Date, Seller shall deliver or cause to be delivered to Purchaser the following:

 

14.1.1.A Deed.

 

14.1.2.A Bill of
Sale in the form annexed hereto as Exhibit 3.

 

14.1.3.An Assignment
and Assumption of Service, Maintenance and Concessionaire Agreements, in the form annexed hereto as Exhibit 4.

 

14.1.4.An Assignment
and Assumption of Landlord’s Interest in Leases, in the form annexed hereto as Exhibit 5.

 

14.1.5.All records
(including originals) within Seller’s or Seller’s managing agent’s possession or reasonably obtainable by such
parties reasonably required for the continued operation of the Property, including but not limited to, service contracts, plans,
surveys, Leases, Guaranties, lease files, licenses, permits, warranties, guaranties, records of current expenditures for repairs
and maintenance, copies of RPIE filings, notices of violations, and the certificate of occupancy. Such records are to be delivered
to Purchaser’s attorneys’ office, unless otherwise agreed to by the parties hereto.

 

14.1.6.An Assignment
of Licenses and/or Permits, in the form annexed hereto as Exhibit 6.

 

14.1.7.An Assignment
of Warranties and Guarantees, in the form annexed hereto as Exhibit 7.

 

14.1.8.A certificate
confirming to Purchaser that the representations and warranties made by Seller hereunder remain true and accurate, in all material
respects, as of the Closing, provided, however, that the rent roll delivered pursuant to Section 14.1.16 below will be deemed
to have replaced the rent roll that is attached hereto as Schedule D for the purposes of confirming the representation in
Section 3.1.2.

 

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14.1.9.All keys and
combinations to locks and electronic access devices at the Property which are in Seller’s or Seller’s managing agent’s
possession. Such items are to be delivered at the office of Seller’s managing agent.

 

14.1.10.A duly executed
letter agreement by which Seller and Purchaser agree to correct any errors in prorations as soon after the Closing as amounts are
finally determined, in the form annexed hereto as Exhibit 8 (the “Post-Closing Adjustment Letter”).

 

14.1.11.Evidence
reasonably acceptable to Purchaser and the Title Company authorizing the consummation by Seller of the transaction contemplated
by this Agreement, and the execution and delivery of documents on behalf of Seller.

 

14.1.12.The certificate
with respect to FIRPTA compliance in the form of Exhibit 9 annexed hereto.

 

14.1.13.The New York
City Department of Finance Real Property Transfer Tax Return (the “RPT Return”) with material supporting the
claimed exemption, and the New York State Combined Real Estate Transfer Tax Return and Credit Line Mortgage Certificate (the “Form
TP-584”), with payment of the tax shown, and any other usual and customary transfer tax documents delivered in connection
with the transfer of real property.

 

14.1.14.The Tenant
Estoppel Statements received by Seller pursuant to Section 10.8 hereof, and any Seller’s Estoppel Statements,
if applicable.

 

14.1.15.A duplicate
original letter to each Tenant advising them of the change of ownership of the Property in the form of Exhibit 10 annexed
hereto (the “Tenant Notice Letters”). Purchaser shall furnish Seller prior to Closing with the name and address
of the bank at which tenants’ securities are to be deposited.

 

14.1.16.An updated
rent roll.

 

14.1.17.Affidavit
of title, substantially in the form annexed hereto as Exhibit 11, or such other reasonable affidavit required by the
Title Company.

 

14.1.18.All security
deposits (whether by crediting the same to Purchaser, transferring any bank accounts in respect thereof to Purchaser and/or assigning
to Purchaser any letters of credit and delivering any original instruments with respect thereto).

 

14.1.19.Evidence
of Seller’s termination of any existing management and/or leasing agency agreements pertaining to the Property.

 

14.1.20.Any and all
other documents, instruments or other items required to be delivered by Seller under the terms of this Agreement.

 

14.1.21.If applicable,
an Assignment of Letters of Credit, in the form annexed hereto as Exhibit 12, and/or such other forms as the issuing bank
of such Letters of Credit may require.

 

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14.1.22.Such other
documents and/or instruments as may be reasonably required by Purchaser or the Title Company in order to consummate the transaction
contemplated by this Agreement, provided the same do not require representations of Seller other than those expressly provided
for herein nor extend the effective period of any representations of Seller beyond the period expressly provided herein.

 

14.2.Purchaser’s
Obligations at Closing. Purchaser shall deliver or cause to be delivered to Seller on the Closing Date the following:

 

14.2.1.The Cash Balance.

 

14.2.2.Duplicate
originals of the Assignment and Assumption of Landlord’s Interest in Leases, the Assignment and Assumption of Service, Maintenance
and Concessionaire Agreements, the Post-Closing Adjustment Letter, the RPT Return, Form TP-584 and the Tenant Notice Letters, duly
executed by Purchaser.

 

14.2.3.Evidence reasonably
acceptable to Seller and the Title Company authorizing the consummation by Purchaser of the transaction which is the subject of
this Agreement, and the execution and delivery of documents on behalf of Purchaser.

 

14.2.4.Such other
documents as may be reasonably and customarily required by the Title Company to consummate the transaction contemplated by this
Agreement.

 

ARTICLE
15.

CONDITION PRECEDENT

 

15.1.It shall be
a condition precedent to Purchaser’s obligation to close hereunder that none of the Material Tenants shall have (i)
terminated their respective Leases; (ii) vacated their respective demised premises, without intention to return; (iii) delivered
notice to Seller of such Material Tenant’s intention to terminate their respective Leases and/or vacate their respective
demised premises, without intention to return; (iv) assigned or sublet, or requested Seller’s permission to assign or sublet,
all or a substantial portion of their respective demised premises; (v) filed for bankruptcy; or (vi) delivered notice to Seller
of such Material Tenant’s intention to file for bankruptcy, prior to Closing.

 

15.2.It shall be
a condition precedent to Purchaser’s obligation to close hereunder that a temporary certificate of occupancy (effective for
ninety (90) days) for the Building shall have been obtained by Seller at Seller’s sole cost and expense, and it shall be
in full force and effect as of the Closing Date.

 

15.3.In the event
a condition precedent set forth in this Article 15 is not either satisfied or waived by Purchaser on or before the Closing
Date, as the same may be adjourned pursuant to the terms of this Agreement, this Agreement shall be null and void, the Deposit
and all interest earned thereon shall be returned to Purchaser, and the parties hereto shall be relieved and released of and from
any further liability with respect to each other, except with respect to the provisions of this Agreement which expressly survive
the termination of this Agreement.

 

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ARTICLE
16.

SALES TAX

 

16.1.The parties
hereto agree that no part of the Purchase Price is attributable to personal property. The provisions of this Section shall survive
the Closing.

 

ARTICLE
17.

UNPAID TAXES

 

17.1.The amount
of any unpaid real estate taxes, assessments, water charges and sewer rents other than items subject to proration as heretofore
provided, which Seller is obligated to pay and discharge may, at the option of Seller, be allowed to Purchaser out of the Cash
Balance, provided that official bills therefor with interest and penalties thereon calculated to said date are furnished by Seller
at the Closing.

 

17.2.Seller may
use any portion of the Cash Balance to satisfy any liens or encumbrances which exist on the Closing Date which are not Permitted
Encumbrances, provided that Seller (i) delivers to Purchaser or Title Company at Closing instruments in recordable form sufficient
to satisfy such liens and encumbrances of record, together with the cost of recording or filing said instruments, or (ii) pays
such sums or performs such acts as will enable the Title Company to insure Purchaser that such liens will not be collected out
of the Property, or (iii) deposits with Purchaser’s attorneys reasonably sufficient funds to enable Purchaser’s attorneys
to obtain and record such instruments.

 

17.3.The existence
of (i) any taxes, assessments, water charges, or sewer rents referred to in Section 17.1, or (ii) any liens or encumbrances
that are not Permitted Encumbrances, shall not be deemed Title Objections if (x) Seller elects to proceed pursuant to the provisions
of Section 17.2, provided that Seller complies with the requirements set forth in Sections 17.1 and 17.2 hereof,
or (y) Purchaser is exercising its election to credit certain costs against the Purchase Price as provided in Section 5.2
hereof.

 

17.4.If Seller
requests within a reasonable time prior to the Closing Date, Purchaser agrees to provide at the Closing separate official cashier’s
checks, which in the aggregate equal the amount of the Cash Balance, in order to facilitate the satisfaction of any unpaid (and
due) real estate taxes, assessments, water charges or sewer rents, liens and/or encumbrances referred to in Section 17.1,
and, if Seller elects to proceed pursuant to the provisions of Section 17.2, the payment of any liens and encumbrances referred
to therein.

 

ARTICLE
18.

THE CLOSING

 

18.1.The Closing.
The sale and purchase of the Property contemplated by the terms and conditions of this Agreement shall be consummated at the Closing.

 

    	33

    	 

    

18.1.1.Location
and Date of Closing. Subject to the satisfaction of the terms and conditions, including but not limited to the adjournment
rights of either party, set forth herein, the Closing shall take place through an escrow administered by Escrow Agent at 2:00 P.M.,
on December 21, 2012 (the “Initial Closing Date”). Neither party shall be required to be present at the Closing,
unless otherwise agreed to by the parties. In addition to any adjournment right of either party set forth herein, Purchaser shall
be entitled to adjourn the Initial Closing Date to December 27, 2012, which adjournment shall be made upon not less than one (1)
Business Day prior written notice; provided, however, that Purchaser shall be obligated to close title to the Property, in accordance
with the terms and conditions of this Agreement, by no later than 6:00 p.m. on December 27, 2012. Notwithstanding anything to the
contrary contained herein, Purchaser shall have the right to accelerate the date of Closing upon ten (10) Business Days prior written
notice to Seller provided that all conditions precedent to both Purchaser’s and Seller’s respective obligations to
proceed with Closing under this Agreement have been satisfied (or, if there are conditions to a party’s obligation to proceed
with Closing that remain unsatisfied, such conditions have been waived by Purchaser or Seller, as applicable). In the event that
Purchaser elects to accelerate and the Façade Escrow Amount shall have not been agreed, then the parties hereto covenant
and agree to reasonably cooperate in good faith to determine the Façade Escrow Amount on or prior to such accelerated Closing
Date (such date, the “Accelerated Closing Date”). In the event that the parties fail to reach agreement on such
Façade Escrow Amount prior to the Accelerated Closing Date, then such accelerated Closing shall not occur and the parties
shall proceed to Closing pursuant to the timeframes detailed in this Section 18.1.1 and pursuant to the procedures detailed
in Section 3.1.7. For purposes of this Agreement, the “Closing Date" shall mean the Initial Closing Date
or the Accelerated Closing Date set forth in this Section 18.1.1, as such date may be adjourned pursuant to this Section
18.1.1 or any provision of this Agreement, and the term “Business Day” shall mean all days except Saturdays,
Sundays, and all days observed by the Federal Government or New York State as legal holidays.

 

TIME SHALL BE DEEMED
OF THE ESSENCE with respect to Purchaser’s and Seller’s obligation to close.

 

18.1.2.Delivery
of Documents. At the Closing, the Deed and other documents required under Section 14.1 shall be delivered to Escrow
Agent to be released upon Seller’s receipt of the payments provided for in Article 2 and the documents referred to
in Section 14.2.

 

ARTICLE
19.

NOTICES

 

19.1.Except as
otherwise provided in this Agreement, any and all notices, elections, demands, requests and responses permitted or required to
be given pursuant to this Agreement shall be in writing, signed by the party giving the same or by its attorneys, and shall be
deemed to have been duly given and effective upon being: (i) personally delivered with receipt for delivery; or (ii) deposited
with a nationally recognized express overnight delivery service (e.g., Federal Express) for next Business Day delivery with receipt
for delivery; or (iii) deposited in the United States mail, postage prepaid, certified with return receipt requested, to the other
party at the address of such other party set forth below, or at such other address within the continental United States as may
be designated by a notice of change of address and given in accordance herewith. The time period in which a response to any such
notice, election, demand or request must be given shall commence on the date of receipt thereof, or in the case of facsimile transmission,
as of the date of the facsimile transmission. Personal delivery to a party or to any officer, partner, agent or employee of such
party at said address shall be deemed given and received at the time delivered. Rejection or other refusal to accept, or inability
to deliver because of changed address of which no notice has been received, shall also constitute receipt. Notices or other communications
(including agreements) signed by the attorneys for the respective parties shall be deemed binding upon the parties so long as the
intention for such communications (including email agreements) between the attorneys to be binding is clearly set forth therein.

 

    	34

    	 

    

Any such notice, election,
demand, request or response shall be addressed to the respective parties as follows:

 

		(i)	if to Seller, to:

 

229 W. 36th Street Partnership
LP

c/o Real Estate Capital Partners

114 West 47th Street, 23rd Floor

New York, New York 10036

Attention: Michael Fruchtman

 

and:

 

229 W. 36th Street Partnership
LP

c/o Real Estate Capital Partners

13241 Woodland Park Road, Suite 600

Herndon, VA 20171

Attention: Andre Kinney

 

with a copy to:

 

Dechert LLP

Cira Centre

2929 Arch Street

Philadelphia, PA 19104-2808

Attention: Jay L. Zagoren, Esquire

 

		(ii)	if to Purchaser, to:

 

ARC NY22936001, LLC

405 Park Avenue, 12th Floor

New York, New York 10022

Attention: Jesse Galloway, Esq.

 

with a copy to:

 

Donovan LLP

152 Madison Avenue, 14th Floor

New York, New York 10016

Attention: Nicholas T. Donovan, Esq.

 

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		(iii)	if to Escrow Agent, to:

 

Chicago Title Insurance Company

1515 Market Street, Suite 1325

Philadelphia, Pennsylvania 19102-1930

Attention: Edwin G. Ditlow

 

ARTICLE
20.

DEFAULT

 

20.1.Purchaser’s
Default. If Purchaser fails to accept title and pay the Cash Balance in accordance with this Agreement, the Deposit, together
with all interest accrued thereon, if any, shall be retained by Seller as liquidated damages. The provisions herein contained for
liquidated and agreed upon damages are bona fide provisions for such and are not a penalty, the parties agreeing that by reason
of Seller binding itself to the sale of the Property and by reason of the withdrawal of the Property from sale at a time when other
parties would be interested in acquiring the Property, that Seller will sustain damages if Purchaser defaults, which damages will
be substantial but will not be capable of determination with mathematical precision, and therefore, as aforesaid, this provision
for liquidated and agreed upon damages has been incorporated in this Agreement as a provision beneficial to both parties. Notwithstanding
the foregoing provisions of this Section, there shall be no limitation on Purchaser’s liabilities or Seller’s remedies
with respect to any indemnities made by Purchaser that are specifically stated herein to survive the termination of this Agreement.

 

20.2.Seller’s
Default. Reference is hereby made to Sections 21.1 and 21.2 for Purchaser’s exclusive remedies in the event
of a breach of representation or failure to perform any agreement set forth in this Agreement on the part of Seller, subject to
the further provisions of this Section 20.2. If Seller, at the Closing, and/or as of the Closing Date, does not make or
cause to be made the deliveries described in Section 14.1 and/or does not take all other action required to be taken by
Seller as of the Closing Date under this Agreement, or if Seller violates any covenant or agreement set forth herein and fails
to cure same at or prior to the Closing, whether or not Purchaser has elected to accept title in accordance with Section 5.2,
then Purchaser’s sole remedy shall be to elect either (i) to terminate this Agreement and receive a refund of the Deposit,
together with any interest accrued thereon and seek reimbursement for Purchaser’s reasonable out-of-pocket expenses relating
to this Agreement, including its due diligence expenses and any expenses incurred in arranging financing to purchase the Property
(all of which shall be capped at $150,000.00), and neither party shall thereafter have any further right or obligation hereunder,
other than surviving obligations expressly set forth herein or (ii) to bring an action for specific performance of Seller’s
obligations under this Agreement, all rights to a plenary action for damages for such failure being waived hereby, except that
if specific performance is not available or practicable, then Purchaser may recover actual damages, including diminution of value
of the Property, but not consequential damages therefor, provided, however, that if Purchaser shall not have commenced such action
within a period of sixty (60) days following the date on which the Closing was originally scheduled, Purchaser shall be deemed
to have waived its right to proceed under this clause (ii) and shall be deemed instead to have elected the remedy provided for
in clause (i) of this sentence.

 

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BY INITIALING OR SIGNING WHERE INDICATED
BELOW, THE PARTIES SPECIFICALLY APPROVE THE LIQUIDATED DAMAGES PROVISIONS OF THIS ARTICLE 20.

 

	Seller:  __________________________	Purchaser:  __________________________

 

ARTICLE
21.

CONDITIONS; SURVIVAL

 

21.1.Conditions.

 

(a)If Purchaser
(including any assignee or designee of Purchaser named herein) has actual knowledge that (i) any representation of Seller hereunder
is untrue, as of the date represented, and for the purposes hereof a representation shall be untrue only if factually untrue and
having a material adverse business or legal impact on Purchaser or on the ownership or operation of the Property, or (ii) Seller
has failed to perform, observe or comply with any covenant, agreement or condition to be performed hereunder having a material
adverse business or legal impact on Purchaser or the ownership or operation of the Property, Purchaser shall promptly notify Seller
of such discovery by Purchaser. Purchaser’s failure to notify Seller of the same, at or prior to Closing, shall be deemed
to constitute Purchaser’s waiver of same as a condition to Closing and otherwise.

 

(b)If Seller,
having received notice under clause (i) of Paragraph (a) of this Section 21.1 shall fail to cure such misrepresentation
prior to Closing, as it may be adjourned pursuant to Section 3.1.20, then Purchaser may, as its sole remedy (whether at
law or in equity), all other claims for damages or specific performance being hereby expressly waived by Purchaser, elect to terminate
this Agreement and seek reimbursement for Purchaser’s reasonable out-of-pocket expenses relating to this Agreement, including
its due diligence expenses and any expenses incurred in arranging financing to purchase the Property (all of which shall be capped
at $150,000.00), and the sole liability of Seller shall be to return to Purchaser the Deposit, together with any interest accrued
thereon, and to reimburse Purchaser for Purchaser’s reasonable out-of-pocket expenses relating to this Agreement, including
its due diligence expenses and any expenses incurred in arranging financing to purchase the Property (all of which shall be capped
at $150,000.00) and thereupon, this Agreement shall be null and void and the parties hereto shall be relieved of all further obligations
and liability under this Agreement, other than with respect to those obligations and liabilities which expressly survive the termination
of this Agreement.

 

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21.2.Survival.
Except as specifically set forth to the contrary in this Agreement, none of the representations, warranties, covenants, indemnities,
agreements, obligations or commitments made by Seller in this Agreement shall survive the Closing, the same being merged in the
conveyance.

 

ARTICLE
22.

SUCCESSORS AND ASSIGNS

 

22.1.Assignment.
Neither this Agreement nor any of the rights of Purchaser hereunder (nor the benefits of such rights) nor any portion of the ownership
of the beneficial interest in Purchaser may be assigned, transferred or encumbered without Seller’s prior written consent,
which consent may be granted or denied in Seller’s sole and absolute discretion, and any purported assignment, transfer or
encumbrance without Seller’s prior written consent shall be void. Notwithstanding anything to the contrary contained in this
Article 22, Purchaser shall have a right to assign Purchaser’s rights under this Agreement, in whole, but not in part, to
one (i) or more entities which is an affiliate or subsidiary of New York Recovery Operating Partnership, L.P. (the entity to which
the rights are assignable may be a trust, limited liability company, limited liability partnership, limited partnership or a corporation)
(including the right to assign the Agreement at Closing to multiple entities provided that all of the Units shall close simultaneously),
provided that (i) Purchaser designates such assignee at least three (3) Business Days prior to the Closing Date, (ii) the Closing
is not delayed as a result of such assignment, (iii) the assignee of this Contract assumes in writing, the obligations of Purchaser
under this Contract, (iv) the assignment is made without consideration, and (v) the assignee shall be able to make each of Purchaser’s
representations as provided for herein.

 

ARTICLE
23.

BROKERS

 

23.1.Representation.
Each party represents and warrants to the other that it has not dealt with any broker, finder or consultant other than Jones Lang
LaSalle Americas, Inc. (the “Broker”), in connection with the transaction which is the subject of this Agreement.
Each party further represents and warrants to the other that in the event any claim is made for a broker’s, finder’s
or consultant’s commission or fee by anyone other than Broker as a result of any acts or actions of the representing party,
or its representatives with respect to the within transaction, the representing party, its heirs, successors and assigns do hereby
agree to indemnify and hold the other party, its heirs, successors and assigns harmless from any and all loss, liability, cost,
damage or expense with respect to such claims (including, without limitation, reasonable attorneys’ fees and disbursements).
Seller shall pay the brokerage commission to Broker at Closing in accordance with Seller’s agreement with Broker and shall
indemnify and hold Purchaser and its successors and assigns harmless from any and all loss, liability, cost, damage or expense
with respect to any above-described claim made by Broker (including, without limitation, reasonable attorneys’ fees and disbursements).
This Section shall survive the Closing or earlier termination of this Agreement.

 

    	38

    	 

    

ARTICLE
24.

ESCROW

 

24.1.The parties
hereto have mutually requested that Escrow Agent act as escrow agent for the purpose of holding the Deposit in accordance with
the terms of this Agreement and the Escrow Letter in form annexed hereto as Exhibit 13 to be executed by and among Seller,
Purchaser and Escrow Agent upon the making of the Deposit by Purchaser (the “Escrow Letter”). The Deposit, together
with the interest accrued thereon, if any, shall be held by Escrow Agent until the earlier of the Closing, or such time as Seller
or Purchaser may be entitled to a refund thereof in accordance with this Agreement. At such time Escrow Agent shall remit said
sum, together with any interest actually accrued thereon, to the party entitled thereto in accordance with this Agreement. At Closing,
the Deposit, together with any interest actually accrued thereon, shall be paid to Seller. Escrow Agent shall have no liability
to Seller or Purchaser with respect to the amount of interest earned on the Deposit while in escrow.

 

ARTICLE
25.

[INTENTIONALLY DELETED]

 

ARTICLE
26.

MISCELLANEOUS

 

26.1.Existing
Mortgage. At the written request of Purchaser, Seller shall request, and shall use reasonable efforts to cause the existing
mortgages encumbering the Property to be assigned to Purchaser’s mortgage lender at Closing, at no cost or expense to Seller,
in order to reduce Purchase’s mortgage tax obligation in connection with its new mortgage. Nothing contained herein shall
be deemed to create a financing contingency for the benefit of Purchaser.

 

26.2.Merger.
This Agreement constitutes the entire understanding between the parties with respect to the transaction contemplated herein, and
all prior or contemporaneous oral agreements, understandings, representations and statements, and all prior written agreements,
understandings, representations and statements are merged into this Agreement. Neither this Agreement nor any provisions hereof
may be modified, amended, discharged or terminated except by an instrument in writing signed by the party against which the enforcement
of such modification, amendment, discharge or termination is sought, and then only to the extent set forth in such instrument.
Unless otherwise provided herein, no provision of this Agreement may be waived except by an instrument in writing signed by the
party against which the enforcement of such waiver is sought.

 

26.3.Headings.
The Article, Section, Schedule and Exhibit headings used herein are for convenience only, and are not to be used in determining
the meaning of this Agreement or any part hereof.

 

26.4.Governing
Law. This Agreement and its interpretation and enforcement shall be governed by the laws of the State of New York without regard
to conflict of law principles.

 

    	39

    	 

    

26.5.Jurisdiction.
For the purposes of any suit, action or proceeding involving this Agreement, Seller and Purchaser hereby expressly submit to the
jurisdiction of all federal and state courts sitting in the State of New York, and consent that any order, process, notice of motion
or other application to or by any such court, or a judge thereof, may be served within or without such court’s jurisdiction
by registered mail or by personal service, provided that a reasonable time for appearance is allowed, and Seller and Purchaser
agree that such courts shall have the exclusive jurisdiction over any such suit, action or proceeding commenced by either or both
of said parties. In furtherance of such agreement, Seller and Purchaser agree upon the request of the other party to discontinue
(or agree to the discontinuance of) any such suit, action or proceeding pending in any other jurisdiction.

 

26.6.Waiver
of Venue and Inconvenient Forum Claims. Seller and Purchaser hereby irrevocably waive any objection that it may now or hereafter
have to the laying of venue of any suit, action or proceeding arising out of or relating to this Agreement brought in any federal
or state court sitting in the County and State of New York, and hereby further irrevocably waive any claim that any such suit,
action or proceeding is brought in any inconvenient forum.

 

26.7.Waiver
of Jury Trial. Each of the parties hereto waives, irrevocably and unconditionally, any and all right to trial by jury in any
action brought on, under, or by virtue of, or relating in any way to this Agreement or the transactions contemplated hereby, or
any of the documents executed in connection herewith, the Property, or any claims, defenses, rights of setoff or other actions
pertaining hereto or to any of the foregoing.

 

26.8.Successors
and Assigns. This Agreement shall be binding on the successors and assigns of the parties hereto.

 

26.9.Invalid
Provisions. If any term or provision of this Agreement, or any part of any term or provision, or the application thereof to
any person or circumstance shall to any extent be held invalid or unenforceable, the remainder of this Agreement or the application
of such term or provision or remainder thereof to persons or circumstances other than those as to which it is held invalid and
unenforceable shall not be affected thereby, and each term and provision of this Agreement shall be valid and enforceable to the
fullest extent permitted by law.

 

26.10.Schedules
and Exhibits. All Schedules and Exhibits which are annexed to this Agreement are a part of this Agreement and are incorporated
herein by reference.

 

26.11.No Other
Parties. The provisions of this Agreement are for the sole benefit of the parties to this Agreement and their successors and
permitted assigns, and shall not give rise to any rights by or on behalf of anyone other than such parties, and no party is intended
to be a third party beneficiary hereof. No provisions of this Agreement, or of any of the documents and instruments executed in
connection herewith, shall be construed as creating in any person or entity other than Purchaser and Seller and their permitted
assigns any rights of any nature whatsoever.

 

26.12.Interpretation.
This Agreement shall be construed without regard to any presumption or other rule requiring construction against the party causing
this Agreement to be drafted.

 

    	40

    	 

    

26.13.Counterparts;
Faxed Signatures. This Agreement may be executed in multiple counterparts, each of which shall, when executed, be deemed to
be an original, and all of which when taken together shall constitute but one agreement. Each party may rely upon a faxed counterpart
of this Agreement executed and delivered by the other party as if such counterpart were an original counterpart.

 

26.14.Binding
Effect. This Agreement shall not become a binding obligation upon Seller until the same has been fully executed by Purchaser
and Seller, and until a fully executed original counterpart thereof has been delivered by Seller to Purchaser.

 

26.15.Recordation.
Neither this Agreement, nor any other document related hereto, nor any memorandum thereof shall be recorded, and any such recording
shall be void and of no force or effect.

 

26.16.Intentionally
Omitted.

 

26.17.Defined
Terms. Capitalized terms used in this Agreement are defined as set forth on Exhibit 1.

 

26.18.Singular/Plural.
The use of the singular shall be deemed to include the plural, and vice versa, whenever the context so requires.

 

    	41

    	 

    

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

 

	 	Seller
	 	 
	 	229 W. 36TH STREET PARTNERSHIP LP
	 	a Delaware limited partnership
	 	 
	 	 
	 	By: 	RECAP 36TH STREET GP, INC.,
	 	 	a Delaware corporation

 

	 	By: 	/s/ Michael Fruchtman
	 	 	Name: Michael Fruchtman
	 	 	Title: Vice President

 

    	42

    	 

    

 

	 	Purchaser
	 	 
	 	ARC NY22936001, LLC,
	 	a Delaware limited liability company
	 	 
	 	By: 	/s/ Edward M. Weil, Jr.
	 	 	Name: Edward M. Weil, Jr.
	 	 	Title:   President

 

    	43

    	 

    

 

EXHIBIT
1

 

Definitions

 

“Accelerated
Closing Date” shall have the meaning given to such term in Section 18.1.1.

 

“Adjustment
Date” shall have the meaning given to such term in Section 13.1.

 

“Agreement”
shall have the meaning given to such term in Recitals.

 

“ALCC”
shall have the meaning given to such term in Section 10.2.1.

 

“Approved
Contractor” shall have the meaning given to such term in Section 11.1.

 

“Approved
Repairs” shall have the meaning given to such term in Section 11.1.2.

 

“Broker”
shall have the meaning given to such term in Section 23.1.

 

“Brokerage
Agreement” shall have the meaning given to such term in Section 3.1.2(e).

 

“Building”
shall have the meaning given to such term in Section 1.1.2.

 

“Business
Day” shall have the meaning given to such term in Section 18.1.1.

 

“Cash Balance”
shall have the meaning given to such term in Section 2.2.2.

 

“Closing Date”
shall have the meaning given to such term in Section 18.1.1.

 

“Closing”
shall have the meaning given to such term in Section 13.1.

 

“Collins”
shall have the meaning given to such term in Section 7.1.

 

“Collins Agreement”
shall have the meaning given to such term in Section 7.1.

 

“Confidentiality
Agreement” shall mean that certain Principal Confidentiality and Indemnification Agreement dated July 30, 2012 by
and between Purchaser and Broker, as exclusive agent of Seller.

 

“Confirming
Estoppel” shall have the meaning given to such term in Section 10.8.4.

 

“Contract
Survey” shall have the meaning given to such term in Section 4.1.2.

 

“Contract
Title Report” shall have the meaning given to such term in Section 5.1.

 

“Deed”
shall mean a Bargain and Sale Deed without Covenant against Grantor’s Acts in proper form for recording substantially in
the form annexed hereto as Exhibit 2.

 

“Deposit”
shall have the meaning given to such term in Section 2.2.1(a).

 

    	 

    	 

    

“Designated
Representative” shall have the meaning given to such term in Section 3.1.18.

 

“Effective
Date” shall have the meaning given to such term in the Recitals.

 

“Escrow Agent”
shall have the meaning given to such term in Section 2.2.1(a).

 

“Escrow Letter”
shall have the meaning given to such term in Section 24.1.

 

“Façade
Escrow Amount” shall have the meaning given to such term in Section 3.1.7.3.

 

“Façade
Work” shall have the meaning given to such term in Section 3.1.7.1.

 

“Fieldler
Contract” shall have the meaning given to such term in Section 3.1.7.1.

 

“Fixed Rents”
shall have the meaning given to such term in Section 13.1.1(a).

 

“Floor Amount”
shall have the meaning given to such term in Section 3.3.

 

“Form TP-584”
shall have the meaning given to such term in Section 14.1.13.

 

“Governmental
Authority” shall have the meaning given to such term in Section 4.1.1.

 

“Guaranties”
shall have the meaning given to such term in Section 1.1.5.

 

“Initial Closing
Date” shall have the meaning given to such term in Section 18.1.1.

 

“Intangible
Personal Property” shall have the meaning given to such term in Section 1.1.6.

 

“Land”
shall have the meaning given to such term in Section 1.1.1.

 

“Leases”
shall have the meaning given to such term in Section 1.1.5.

 

“Letter(s)
of Credit” shall have the meaning given to such term in Section 13.1.10(a).

 

“Liability
Limitation” shall have the meaning given to such term in Section 3.3.

 

“Material
Tenants” shall have the meaning given to such term in Section 10.8.4.5.

 

“Maximum Amount”
shall have the meaning given to such term in Section 5.2.

 

“Non-Transferable
Letters of Credit” shall have the meaning given to such term in Section 13.1.10(a).

 

“OFAC”
shall have the meaning given to such term in Section 3.1.10.

 

“Permitted
Encumbrances” shall have the meaning given to such term in Section 4.1.

 

    	 

    	 

    

“Post-Closing
Adjustment Letter” shall have the meaning given to such term in Section 14.1.10.

 

“Property”
shall have the meaning given to such term in Article 1.

 

“Property
Management Agreement” shall have the meaning given to such term in Section 3.1.14.

 

“Purchase
Price” shall have the meaning given to such term in Section 2.1.

 

“Purchaser”
shall have the meaning given to such term in the Recitals.

 

“Released
Parties” shall have the meaning given to such term in Section 3.2.4.

 

“Relevant
Environmental Laws” shall have the meaning given to such term in Section 3.1.13.

 

“RPIE Escrow”
shall have the meaning given to such term in Section 3.1.8.

 

“RPIE Fine”
shall have the meaning given to such term in Section 3.1.8.

 

“RPIE Notice”
shall have the meaning given to such term in Section 3.1.8.

 

“RPT Return”
shall have the meaning given to such term in Section 14.1.13.

 

“SEC”
shall have the meaning given to such term in Section 9.1.

 

“Seller”
shall have the meaning given to such term in the Recitals.

 

“Seller Estoppel
Statement” shall have the meaning given to such term in Section 10.8.3.

 

“Seller’s
Engineer” shall have the meaning given to such term in Section 3.1.7.1.

 

“Service and
Maintenance Agreements” shall have the meaning given to such term in Section 1.1.6.

 

“Subsequent
Title Objection” shall have the meaning given to such term in Section 5.1.

 

“Survival
Period” shall have the meaning set given to such term in Section 3.1.19

 

“Tax Law”
shall have the meaning given to such term in Section 6.2.

 

“Tenant Estoppel
Requirement” shall have the meaning given to such term in Section 10.8.2.

 

“Tenant Estoppel
Statement” shall have the meaning given to such term in Section 10.8.1.

 

    	 

    	 

    

“Tenant Notice
Letters” shall have the meaning given to such term in Section 14.1.15.

 

“Tenant(s)”
shall have the meaning given to such term in Section 1.1.5.

 

“Title Company”
shall have the meaning given to such term in Section 5.1.

 

“Title Objections”
shall have the meaning given to such term in Section 5.2.

 

“U.S. Person”
shall have the meaning given to such term in Section 3.1.10.

 

“VSA Group”
shall have the meaning given to such term in Section 3.1.7.3.

 

“Work Amount
A” shall have the meaning given to such term in Section 3.1.7.3.

 

“Work Amount
B” shall have the meaning given to such term in Section 3.1.7.3.

 

    	 

    	 

    

EXHIBIT
2

 

Form of Deed

 

BARGAIN AND SALE DEED

 

Without Covenant Against Grantor’s
Acts

 

THIS INDENTURE, made the [__] day of [
] 2012, between 229 W. 36TH STREET PARTNERSHIP LP, a Delaware limited partnership, having an address c/o Real Estate
Capital Partners, 114 West 47th Street, 23rd Floor, New York, New York 10036 (“party of the first
part”) and [_________], a [___________] having an address at [_____________] (“party of the second part”).

 

WITNESSETH, that the party of the first
part, in consideration of Ten Dollars ($10.00) and other good and valuable consideration paid by the party of the second part,
does hereby grant and release unto the party of the second part, the heirs or successors and assigns of the party of the second
part forever,

 

ALL that certain plot, piece or parcel
of land, with the buildings and improvements thereon erected, situate, lying and being in the State, County and City of New York,
more commonly known as 229 West 36th Street, New York, New York, Block: 786, Lot: 23 and as further described in Schedule
A attached hereto and made a part hereof;

 

TOGETHER with all right, title and interest,
if any, of the party of the first part in and to any streets and roads abutting the above described premises to the center lines
thereof,

 

TOGETHER, with the appurtenances and all
the estate and rights of the party of the first part in and to said premises,

 

TO HAVE AND HOLD the premises herein granted
unto the party of the second part, the heirs or successors and assigns of the party of the second part forever,

 

AND the party of the first part, in compliance
with Section 13 of the New York Lien Law, covenants that the party of the first part will receive the consideration for this conveyance
and will hold the right to receive such consideration as a trust fund to be applied first or the purpose of paying the cost of
the improvement and will apply the same first to the payment of the cost of the improvement before using any part of the total
of the same for any other purpose.

 

The word “party” shall be constructed
as if it read “parties” whenever the sense of this indenture so requires.

 

    	 

    	 

    

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

 

	 	229 W. 36TH STREET PARTNERSHIP LP
	 	a Delaware limited partnership
	 	 
	 	By: 	RECAP 36TH STREET GP, INC.,
	 	 	a Delaware corporation

 

	 	By: 	 
	 	 	Name:
	 	 	Title:

 

 

 

    	 

    	 

    
 

 

	State of New York	)
	 	)
	County of	)

 

On the ______ day of in the year 2012
before me, the undersigned, personally appeared _______________, personally known to me or proved to me on the basis of satisfactory
evidence to be the individual(s) whose name(s) is (are) subscribed to the within instrument and acknowledged to me that he/she/they
executed the same in his/her/their capacity(ies), and that by his/her/their signature(s) on the instrument, the individual(s),
or the person upon behalf of which the individual(s) acted, executed the instrument.

 

________________________________

Notary Public

 

    	 

    	 

    

 

SCHEDULE
A

 

LEGAL DESCRIPTION

 

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

 

BEGINNING at a point on the northerly side
of 36th Street, distant 378 feet 6 inches easterly from the corner formed by the intersection of the northerly side of 36th Street
with the easterly side of Eighth Avenue;

 

RUNNING THENCE northerly and parallel with
the easterly side of Eighth Avenue and part of the distance through a party wall 98 feet 9 inches to the center line of the block;

 

THENCE easterly along said center line
of the block and parallel with the northerly side of 36th Street 115 feet 6 inches;

 

THENCE southerly again parallel with the
easterly side of Eighth Avenue 98 feet 9 inches to the northerly side of 36th Street;

 

THENCE westerly along said northerly side
of 36th Street 115 feet 6 inches to the point or place of BEGINNING.

 

 

    	 

    	 

    

 

EXHIBIT
3

 

Bill of Sale

 

KNOW ALL MEN BY THESE PRESENTS that 229
W. 36TH STREET PARTNERSHIP LP., having an office c/o Real Estate Capital Partners, 114 West 47th Street,
23rd Floor, New York, New York 10036 (“Seller”), for and in consideration of the sum of Ten ($10.00)
Dollars and other good and valuable consideration to it in hand paid, at or before the unsealing and delivery of these presents
by [_________________], having an office at 405 Park Avenue, 15th Floor, New York, New York 10022 (“Purchaser”),
the receipt and sufficiency whereof are hereby acknowledged, has transferred and conveyed and by these presents does quitclaim,
release, transfer and convey unto Purchaser, its successors and assigns, all fixtures, machinery and equipment to the extent the
same constitute personal property, and all other personal property (including, without limitation, the Intangible Personal Property,
as defined in that certain Agreement of Sale and Purchase covering the Premises between Seller and Purchaser) (collectively, the
“Personal Property”) owned by Seller, attached or appurtenant to, or used in connection with the occupancy and
operation of those certain premises known as 229 West 36th Street, New York, New York (the “Premises”).

 

TO HAVE AND TO HOLD, the same unto Purchaser,
its successors and assigns, forever.

 

This transfer is made as part of the transfer
of the Premises by Seller to Purchaser as of the date hereof, and both parties agree and acknowledge that no part of the consideration
therefor is allocated to the Personal Property.

 

This transfer is made without representation,
express or implied warranty or guaranty by, or recourse against, Seller of any kind whatsoever, except that Seller represents and
warrants that it owns the Personal Property free and clear of all liens and encumbrances.

 

Except as set forth above, neither Seller
nor any agent or representative of Seller has made, and Seller is not liable or bound in any manner by, any express or implied
warranties, guaranties, inducements, representations or information pertaining to the Personal Property or any part thereof, the
physical condition, the uses which can be made of the same or any other matter or thing with respect thereto and the Personal Property
is being transferred “as is”.

 

This Bill of Sale may be executed and delivered
in any number of counterparts, each of which so executed and delivered shall be deemed to be an original and all of which shall
constitute one and the same instrument.

 

    	 

    	 

    

IN WITNESS WHEREOF, Seller has signed this
instrument as of this [___] day of [_____], 2012.

 

	 	Seller
	 	 
	 	229 W. 36TH STREET PARTNERSHIP LP
	 	a Delaware limited partnership
	 	 
	 	By: 	RECAP 36TH STREET GP, INC.,
	 	 	a Delaware corporation
	 	 	 

 

	 	By: 	 
	 	 	Name:
	 	 	Title:

 

		Purchaser

 

 

    	 

    	 

    

 

EXHIBIT
4

 

Assignment and Assumption of Service,
Maintenance and Concessionaire Agreements

 

KNOW ALL MEN BY THESE PRESENTS, that 229
W. 36TH STREET PARTNERSHIP LP, having an office c/o Real Estate Capital Partners, 114 West 47th Street, 23rd
Floor, New York, New York 10036 (the “Assignor”), in consideration of Ten ($10.00) Dollars in hand paid by [__________]
having an office at 405 Park Avenue, 15th Floor, New York, New York 10022 (the “Assignee”), the receipt
and sufficiency of which are hereby acknowledged, does hereby assign, transfer and set over to Assignee all of Assignor’s
right, title and interest in the service, maintenance and concessionaire agreements affecting the premises known as 229 West 36th
Street, New York, New York (the “Premises”) in effect on the date hereof and listed on Schedule A hereto
(“Agreements”).

 

TO HAVE AND TO HOLD, the same unto Assignee,
its successors and assigns, from and after the date hereof, subject to the terms, covenants, conditions and provisions therein
contained. This Assignment is made without any express or implied warranty or representation by, or recourse against, Assignor
of any kind whatsoever.

 

This Assignment is made in connection with
the transfer this day of the Premises by Assignor to Assignee.

 

Assignee hereby assumes the performance
of all of the terms, covenants and conditions of the Agreements on Assignor’s part to be performed thereunder on, from and
after the date hereof and will well and truly perform all of the terms, covenants and conditions of the Agreements from and after
the date hereof, and with the same force and effect as though Assignee had signed the Agreements as a party named therein.

 

This Assignment shall not be construed
as a representation or warranty by Assignor as to the transferability of the Agreements, and Assignor shall have no liability to
Assignee in the event that any or all of the Agreements (i) are not transferable to Assignee or (ii) are canceled or terminated
by reason of this assignment or any acts of Assignee. This Assignment is made without recourse to Assignor for any cause whatsoever
by Assignee or by any successor to the interest in Assignee.

 

This Assignment may be executed and delivered
in any number of counterparts, each of which so executed and delivered shall be deemed to be an original and all of which shall
constitute one and the same instrument.

 

    	 

    	 

    

IN WITNESS WHEREOF, Assignor and Assignee
have signed this instrument as of the [___] day of [________], 2012.

 

	 	[Assignor]
	 	 
	 	229 W. 36TH STREET PARTNERSHIP LP
	 	a Delaware limited partnership
	 	 
	 	By: 	RECAP 36TH STREET GP, INC.,
	 	 	a Delaware corporation

 

	 	By: 	 
	 	 	Name:
	 	 	Title:

 

 

		[Assignee]

 

 

 

    	 

    	 

    
 

SCHEDULE
A

 

TO

ASSIGNMENT AND ASSUMPTION OF SERVICE, MAINTENANCE AND CONCESSIONAIRE AGREEMENT

 

[Insert description of agreements]

 

 

 

 

    	 

    	 

    

 

EXHIBIT
5

 

Assignment and Assumption of Landlord’s
Interest in Leases

 

KNOW ALL MEN BY THESE
PRESENTS that 229 W. 36TH STREET PARTNERSHIP LP, having an office c/o Real Estate Capital Partners, 114 West 47th
Street, 23rd Floor, New York, New York 10036 (the “Assignor”), in consideration of Ten ($10.00) Dollars
and other good and valuable consideration in hand paid by [______________], having an office at 405 Park Avenue, 15th
Floor, New York, New York 10022 (the “Assignee”), the receipt and sufficiency of which are hereby acknowledged,
hereby assigns unto Assignee all of Assignor’s right, title and interest in and to the following:

 

		(i)	All leases, tenancy, occupancy or license agreements, as the same may have been amended or modified
(the “Leases”), including without limitation, all rents, issues and profits arising therefrom, made and entered
into by any and all tenants at those certain premises known as 229 West 36th Street, New York, New York (the “Premises”);

 

		(ii)	All guaranties delivered in connection with the Leases; and

 

		(iii)	All security deposits (and interest earned thereon, to the extent not otherwise payable to the
tenants under the Leases), if any, held by Assignor under the Leases.

 

TO HAVE AND TO HOLD
the same unto Assignee, its successors and assigns, from and after the date hereof, subject to the terms, covenants, conditions
and provisions contained in the Leases.

 

Assignee hereby assumes
the performance of all of the terms, covenants and conditions of the Leases herein assigned by Assignor to Assignee on, from and
after the date hereof and hereby agrees to perform all of the terms, covenants and conditions of the Leases to be performed on,
from and after the date hereof, all with the full force and effect as if Assignee had signed the Leases originally as the landlord
named therein.

 

Assignee does hereby
agree for itself and its successors and assigns to hold and apply all security deposits in accordance with the terms of the Leases
pursuant to which the same were initially deposited, to the extent transferred to Assignee in accordance with the Agreement.

 

Assignee does hereby
agree for itself, its successors and assigns, to indemnify, defend and save Assignor, its successors and assigns, harmless from
and against any and all claims and liability asserted or arising in connection with the performance by Assignee under the Leases
as assumed hereby which arise from events occurring on or after the date hereof.

 

Assignor does hereby
agree to indemnify, defend and save Assignee, its successors and assigns, harmless from and against any and all claims and liability
asserted or arising from events occurring in connection with the performance by Assignor or under the Leases prior to the date
hereof.

 

    	 

    	 

    

This Assignment is
made without any representation or warranty, express or implied, whatsoever by the Assignor except as expressly set forth herein
and upon the express condition, understanding and agreement that this Assignment is made without recourse to Assignor for any cause
whatsoever by Assignee, or by any successor to the interest of Assignee.

 

IN WITNESS WHEREOF,
the parties hereto have signed this instrument as of this [__] day of, [__________________] 2012.

 

 

	 	[Assignor]
	 	 
	 	229 W. 36TH STREET PARTNERSHIP LP
	 	a Delaware limited partnership
	 	 
	 	By: 	RECAP 36TH STREET GP, INC.,
	 	 	a Delaware corporation

 

	 	By: 	 
	 	 	Name:
	 	 	Title:

 

 

		[Assignee]

 

 

 

 

    	 

    	 

    
 

EXHIBIT
6

 

Assignment of Licenses and/or Permits

 

KNOW ALL MEN BY THESE
PRESENTS that 229 W. 36TH STREET PARTNERSHIP LP, having an office c/o Real Estate Capital Partners, 114 West 47th
Street, 23rd Floor, New York, New York 10036 (the “Assignor”) in consideration of Ten ($10.00) Dollars
and other good and valuable consideration in hand paid by [______________], having an office at 405 Park Avenue, 15th
Floor, New York, New York 10022 (the “Assignee”), the receipt and sufficiency of which are duly acknowledged,
hereby assigns and quitclaims unto Assignee, and its successors and assigns, all of Assignor’s right, title and interest,
if any, in and to all assignable licenses and/or permits, if any, relating to and affecting those certain premises known as 229
West 36th Street, New York, New York (the “Premises”).

 

TO HAVE AND TO HOLD
the same unto Assignee, its successors and assigns, from and after the date hereof, subject to the terms, covenants, conditions
and provisions therein contained.

 

This Assignment is
made in connection with the transfer this day of the Premises by Assignor to Assignee.

 

This Assignment is
made without any express or implied warranty or representation by, or recourse against Assignor of any kind whatsoever by Assignee
or by a successor to the interest of Assignee, except that Assignor represents and warrants that it is the current holder of such
licenses and permits true and free of any liens or encumbrances created by Assignee.

 

IN WITNESS WHEREOF,
the undersigned has signed this Assignment as of this [___] day of [_____________], 2012.

 

	 	[Assignor]
	 	 
	 	229 W. 36TH STREET PARTNERSHIP LP
	 	a Delaware limited partnership
	 	 
	 	By: 	RECAP 36TH STREET GP, INC.,
	 	 	a Delaware corporation

 

	 	By: 	 
	 	 	Name:
	 	 	Title:

 

		[Assignee]

 

 

 

    	 

    	 

    
 

EXHIBIT
7

 

Assignment of Warranties and Guarantees

 

KNOW ALL MEN BY THESE
PRESENTS that 229 W. 36TH STREET PARTNERSHIP LP, having an office c/o Real Estate Capital Partners, 114 West 47th
Street, 23rd Floor, New York, New York 10036 (the “Assignor”), in consideration of Ten ($10.00) Dollars
and other good and valuable consideration in hand paid by [______] having an office at 405 Park Avenue, 15th Floor,
New York, New York 10022 (the “Assignee”), the receipt and sufficiency of which are duly acknowledged, hereby
assigns and quitclaims unto Assignee all of Assignor’s right, title and interest, if any, in and to all assignable warranties
and guarantees of contractors, manufacturers, suppliers and/or installers, if any, relating to those certain premises known as
229 West 36th Street, New York, New York (the “Premises”), including all assignable warranties and
guarantees covering the materials, goods and equipment installed in or upon the Premises.

 

TO HAVE AND TO HOLD
the same unto Assignee, its successors and assigns, from and after the date hereof, subject to the terms, covenants, conditions
and provisions therein contained.

 

This Assignment is
made in connection with the transfer this day of the Premises by Assignor to Assignee.

 

This Assignment is
made without express or implied warranty or representation by, or recourse against, Assignor of any kind whatsoever, by Assignee
or by any successor to the interest of Assignee except that Assignor represents and warrants that it is the current holder of such
licenses and permits true and free of any liens or encumbrances created by Assignee.

 

IN WITNESS WHEREOF,
the undersigned has signed this Assignment as of this [___] day of [__________], 2012.

 

	 	[Assignor]
	 	 
	 	229 W. 36TH STREET PARTNERSHIP LP
	 	a Delaware limited partnership
	 	 
	 	By: 	RECAP 36TH STREET GP, INC.,
	 	 	a Delaware corporation
	 	 	 

 

	 	By: 	 
	 	 	Name:
	 	 	Title:

 

 

		[Assignee]

 

 

    	 

    	 	

    
 

EXHIBIT
8

 

Post-Closing Adjustment Letter

 

[Date]

 

[Name and Address of Purchaser]

 

		Re:	229
West 36th Street

New York, New York (the “Premises”)

 

Ladies and Gentlemen:

 

In connection with the closing adjustments
made pursuant to the transfer of title of the Premises by the undersigned to you, a copy of which closing adjustments is annexed
hereto, it is hereby agreed that if any arithmetic calculations shall prove to be erroneous, or any adjustment shall be omitted,
same shall be adjusted between you and the undersigned after the closing. Any such adjustment shall be paid promptly after same
is ascertained. The obligation to correct any erroneous adjustment or to make any additional adjustment in accordance with the
above shall survive the closing.

 

	 	Very truly yours,
	 	 
	 	Seller
	 	 
	 	229 W. 36TH STREET PARTNERSHIP LP
	 	a Delaware limited partnership
	 	 
	 	By: 	RECAP 36TH STREET GP, INC.,
	 	 	a Delaware corporation

 

	 	By: 	 
	 	 	Name:
	 	 	Title:

 

 

 

	 	Acknowledged and agreed to this
	 	[_____] day of [_______________], 2012:

    

    Purchaser

 

    	 

    	 	

    
 

EXHIBIT
9

 

FIRPTA Certificate

 

Section 1445 of the
Internal Revenue Code provides that a transferee of a U. S. real property interest must withhold tax if the transferor is a foreign
person. To inform the transferee that withholding of tax is not required upon the disposition of a U.S. real property interest
by 229 W. 36TH STREET PARTNERSHIP LP (“Seller”), the undersigned hereby certifies the following on behalf
of Seller:

 

1.Seller 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.Seller’s
U.S. employer identification number is 26-0558911, and

 

3.Seller’s
office address is c/o Real Estate Capital Partners, 114 West 47th Street, 23rd Floor, New York, New York
10036.

 

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

 

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

 

 

 

	Dated: 	 	 	 	 	 
	 	 	 	 	[Title]	 
	 	 	 	 	 	 

 

 

    	 

    	 	

    

EXHIBIT
10

 

Tenant Notice Letter

 

[Letterhead of Seller]

 

CERTIFIED MAIL

RETURN RECEIPT REQUESTED

AND BY HAND

 

[Date]

 

[Tenant]

 

Re:Acquisition
of 229 West 36th Street New York, NY (the “Property”)

 

Dear [______________]:

 

We are pleased to announce
that [_________________] (“Purchaser”) has today acquired the Property from 229 W. 36TH STREET PARTNERSHIP
LP. [________________________]’s address is [____________________]].

 

Your security deposit
in the amount of $[____________], held in accordance with your lease at the Property (“Lease”) has been transferred
to and deposited with Purchaser. If that security is in the form of a letter of credit, Purchaser will shortly be in touch with
you to arrange for appropriate changes to the letter of credit to reflect Purchaser’s acquisition of the Property.

 

From this day forward,
all checks payable to the landlord under your Lease should be made payable to:

 

 

    	 

    	 	

    
Should you have any
questions concerning the acquisition of the Property please call [_____________] at [__________________].

 

	 	Very truly yours,
	 	 
	 	Seller
	 	 
	 	229 W. 36TH STREET PARTNERSHIP LP
	 	a Delaware limited partnership
	 	 
	 	By: 	RECAP 36TH STREET GP, INC.,
	 	 	a Delaware corporation

 

	 	By: 	 
	 	 	Name:
	 	 	Title:

 

 

 

 

 

 

 

 

AGREED TO BY:

 

[PURCHASER]

 

    	 

    	 	

    
 

EXHIBIT
11

 

Title Affidavit

 

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

 

 

 

[_________________],
being duly sworn, deposes and says:

 

1.I am the [_____________]
of 229 W. 36TH STREET PARTNERSHIP LP, the owner of the premises described in Schedule A (“Property”).

 

2.That there has
been no work done upon the Property by the City of New York, nor has the City of New York made any demand for any such work that
may result in charges by the New York City Department of Rent and Housing Maintenance, or charges by the New York City Department
of Environmental Protection for water tap closings or any related work, whether or not such charges are liens against the Property.

 

3.That no fee for
an inspection, reinspection, examination of service performed by the Department of Buildings has been levied, charged, created
or incurred that may become a lien on the Property and there are no other liens issued pursuant to the Administrative Code of the
City of New York which may affect the Property.

 

4.Each current
tenant of the Property is in possession as a tenant only. There are no options to purchase the Property or rights of first refusal
with respect to a purchase of its Property either pursuant to written leases or by separate agreements.

 

5.That I make this
affidavit and indemnification to induce [the Title Company] to insure title to the Property.

 

6.This affidavit
is given by me solely in my capacity as the [___________] of 229 W. 36TH STREET PARTNERSHIP LP and not in my individual
capacity and I shall have no liability with respect to any matter set forth or referred to in this affidavit or by the mere fact
of my execution of this affidavit.

 

Sworn to before me this

[___] day of [____________], 2012.

 

 

Notary Public

 

 

    	 

    	 	

    

EXHIBIT
12

 

[ASSIGNMENT
OF LETTERS OF CREDIT]

 

 

 

 

 

 

    	 

    	 	

    
 

EXHIBIT
13

 

ESCROW
LETTER

 

Dated: [_____________]

 

	
        Chicago Title Insurance Company

        1515 Market Street, Suite 1325

        Philadelphia, Pennsylvania 19102-1930

 

 

		Re:	Agreement of Sale and Purchase (the “Agreement”) between 229 W. 36TH
STREET PARTNERSHIP LP (“Seller”) and ARC NY22936001, LLC, (“Purchaser”) dated November [__] [__],
2012

Premises: 229 West 36th Street New York. New York 10018

 

Ladies and Gentlemen:

 

Pursuant to the above-referenced
Agreement by and between the undersigned, you are required to act as escrow agent, to hold $6,500,000.00 (“Escrow Deposit”)
in escrow, in accordance with the terms and conditions hereinafter set forth. The Escrow Deposit shall be deposited in a segregated
interest bearing account for the benefit of the parties hereto.

 

The Escrow Deposit
together with interest earned thereon, if any, shall be released or delivered to the party entitled thereto pursuant to the Agreement
with reasonable promptness after:

 

(a)you
shall have received notice from both parties to this Escrow Letter authorizing release of the Escrow Deposit; or

 

(b)the
occurrence of either of the following events:

 

		(i)	the closing under the Agreement; or

 

		(ii)	the receipt by Escrow Agent of a written notice from either party to this Escrow Letter stating
that an event has occurred under the Agreement entitling the party delivering such notice to the Escrow Deposit, whereupon Escrow
Agent shall deliver written notice (the “Default Notice”) thereof to the other party and, unless such other
party shall have delivered a written notice of objection to Escrow Agent within ten (10) days following receipt by such other party
of the Default Notice, Escrow Agent shall deliver the Escrow Deposit to the party initially requesting the Escrow Deposit.

 

It is agreed that the
duties of Escrow Agent are only such as are herein specifically provided, being purely ministerial in nature, and that Escrow Agent
shall incur no liability whatever except for willful misconduct or gross negligence so long as Escrow Agent has acted in good faith.
The undersigned hereby release Escrow Agent from any act done or omitted to be done by Escrow Agent in good faith in the performance
of Escrow Agent’s duties hereunder.

 

    	 

    	 	

    

Escrow Agent shall
be under no responsibility with respect to the Escrow Deposit other than faithfully to follow the instructions herein contained.
Without limiting the generality of the foregoing, Escrow Agent shall have no responsibility to protect the Escrow Deposit, or to
do any act or thing whatever in regard to the Escrow Deposit. Escrow Agent shall not be responsible for any failure to demand,
collect or enforce any obligation with respect to the Escrow Deposit or for any diminution in value of the Escrow Deposit from
any cause. Escrow Agent may consult with counsel and shall be fully protected in any action taken in good faith, in accordance
with such advice. Escrow Agent shall not be required to defend any legal proceedings which may be instituted against Escrow Agent
in respect of the subject matter of these instructions unless requested so to do by the undersigned and indemnified to the satisfaction
of Escrow Agent against the cost and expense of such defense. Escrow Agent shall not be required to institute legal proceedings
of any kind. Escrow Agent shall have no responsibility for the genuineness or validity of any document or other item deposited
with Escrow Agent, and shall be fully protected in acting in accordance with any written instructions given to Escrow Agent hereunder
and believed by Escrow Agent to have been signed by the proper parties.

 

The interest earned
on the Escrow Deposit shall be deemed to mean only the interest actually earned from the date the Escrow Deposit is deposited in
a segregated interest bearing form to the date withdrawn in accordance with the terms hereof. Escrow Agent shall not have any duty
to maximize the rate or interest or duration of interest bearing form. If deposited in a form which is not convertible to cash
when Escrow Agent is required to release the Escrow Deposit, Escrow Agent shall be deemed to have complied with the requirement
of release by delivery of a duly executed assignment of its rights in the Escrow Deposit.

 

Escrow Agent assumes
no liability under this Escrow Letter except that of a stakeholder. If there is any dispute as to whether Escrow Agent is obligated
to deliver the Escrow Deposit, or as to whom the Escrow Deposit is to be delivered, Escrow Agent will not be obligated to make
any delivery of the Escrow Deposit, but in such event may hold the Escrow Deposit until receipt by Escrow Agent of an authorization
in writing signed by all the persons having interest in such dispute, directing the disposition of the Escrow Deposit, or in the
absence of such authorization, Escrow Agent may hold the Escrow Deposit 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 Escrow
Deposit in court pending such determination, but may at Escrow Agent’s reasonable discretion make a deposit of the Escrow
Deposit in court and in such event all liability and responsibility of Escrow Agent shall terminate upon such deposit having been
made. In making delivery of the Escrow Deposit in the manner provided for in this Escrow Letter, Escrow Agent shall have no further
liability in the matter.

 

The undersigned hereby
jointly and severally agree to indemnify and hold the Escrow Agent free and harmless from and against any claim, liability, suit,
cost (including Escrow Agent’s reasonable counsel fees) or other obligation incurred or arising out of this Escrow Letter
excluding only Escrow Agent’s liability for its actions taken in bad faith or upon its willful misconduct or gross negligence.

 

    	 

    	 	

    

Purchaser and Seller
have mutually requested that Escrow Agent act as escrow agent for the purpose of holding the Escrow Deposit in accordance with
the terms of this Escrow Letter.

 

Upon delivery of the
Escrow Deposit in accordance with this Escrow Letter, Purchaser and Seller hereby release Escrow Agent from all obligations and
liability hereunder.

 

Escrow Agent has executed
this Escrow Letter to confirm that Escrow Agent is holding, and will hold, the Escrow Deposit in escrow pursuant to and in accordance
with the provisions of this Escrow Letter.

 

Except as otherwise
provided in this Escrow Letter, any and all notices, elections, demands, requests and responses thereto permitted or required to
be given under this Escrow Letter shall be in writing, signed by the party giving the same, and shall be deemed to have been properly
given and shall be deemed effective upon being personally delivered, or after being deposited in the United States mail, postage
prepaid, certified with return receipt requested, to the other parties at the address of the other parties set forth below or at
such other address within the continental United States as the other parties may designate by notice specifically designated as
a notice of change of address and given in accordance herewith; provided, however, that the time period in which a response to
any such notice, election, demand or request must be given shall commence on the date of receipt thereof; and provided further
that no notice of change of address shall be effective until the date of receipt thereof. Personal delivery to a party or to any
officer, partner, agent or employee of such party at said address shall constitute receipt. Rejection or other refusal to accept
or inability to deliver because of changed address of which no notice has been received shall also constitute receipt. Any such
notice, election, demand, request or response shall be addressed as follows:

 

	Seller at:	229 W. 36TH STREET PARTNERSHIP LP
	 	c/o Real Estate Capital Partners
	 	114 West 47th Street, 23rd Floor
	 	New York, New York  10036
	 	Attention:  Michael Fruchtman
	 	 
	 	and:
	 	 
	 	229 W. 36TH STREET PARTNERSHIP LP
	 	c/o Real Estate Capital Partners
	 	13241 Woodland Park Road, Suite 600
	 	Herndon, VA  20171
	 	Attention:  Andre Kinney

 

	with a copy to:	Jay Zagoren, Esq.
	 	Dechert LLP
	 	2929 Arch Street
	 	Philadelphia, PA  19104

 

    	 

    	 	

    
 

	 	 
	Purchaser:	ARC NY22936001, LLC
	 	405 Park Avenue, 12th Floor
	 	New York, New York 10022
	 	Attention: Jesse Galloway, Esq.
	 	 
	with a copy to:	Donovan LLP
	 	152 Madison Avenue, 14th Floor
	 	New York, New York 10016
	 	Attention: Nicholas T. Donovan, Esq.
	 	 
	Escrow Agent at:	Chicago Title Insurance Company
	 	1515 Market Street, Suite 1325
	 	Philadelphia, Pennsylvania 19102-1930
	 	Attention: Edwin Ditlow
	 	 

 

This Escrow Letter
constitutes the entire agreement with respect to the terms and conditions of such escrow and any modification, amendment or supplement
shall be binding only if made pursuant to an instrument in writing executed by each of the parties hereto. This Escrow Letter shall
be binding upon and inure to the benefit of our respective successors and assigns except that the within escrow shall not inure
to the benefit of either of the undersigned’s assigns, unless and until you have received a duly executed assignment and
assumption (in form satisfactory to you) of all of the assignor’s obligations hereunder.

 

	 	Very truly yours,
	 	 
	Seller’s Federal Tax Identification Number is 26-0558911	229 W. 36TH STREET PARTNERSHIP LP a Delaware limited partnership
	 	 
	 	 
	 	By: 	RECAP 36TH STREET GP, INC., 

a Delaware corporation
	 	 	 

 

	 	By: 	 
	 	 	Name:

 

 

    	 

    	 	

    
 

PURCHASER:

 

ARC _______________, LLC

 

	By:	 	 	 	Purchaser’s Federal Tax ID Number is: 	 
	 	 	 	 	[____________]	 
	 	 	 	 	 	 

 

Accepted and Agreed to:

 

CHICAGO TITLE INSURANCE COMPANY

 

	By:	 	 	 	 	 
	 	Edwin Ditlow	 	 	 	 
	 	 	 	 	 	 

 

    	 

    	 	

    
 

 

PURCHASER:

 

[______________________]

 

Accepted and Agreed to:

 

	 	 	 	 	 
	[ESCROW AGENT]	 	 	 	 
	 	 	 	 	 	 
	 	 	 	 	 	 
	By:	 	 	 	 	 

 

 

Seller’s Federal Tax Identification Number

is 26-0558911

 

Purchaser’s Federal Tax Identification Number

is [_______________________________]

 

    	 

    	 	

    
SCHEDULE
A

 

Description of Land

 

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

 

BEGINNING at a point on the northerly side
of 36th Street, distant 378 feet 6 inches easterly from the corner formed by the intersection of the northerly side of 36th Street
with the easterly side of Eighth Avenue;

 

RUNNING THENCE northerly and parallel with
the easterly side of Eighth Avenue and part of the distance through a party wall 98 feet 9 inches to the center line of the block;

 

THENCE easterly along said center line
of the block and parallel with the northerly side of 36th Street 115 feet 6 inches;

 

THENCE southerly again parallel with the
easterly side of Eighth Avenue 98 feet 9 inches to the northerly side of 36th Street;

 

THENCE westerly along said northerly side
of 36th Street 115 feet 6 inches to the point or place of BEGINNING.

 

 

    	 

    	 	

    
 

 

 

SCHEDULE
B

 

Schedule of Leases

 

1.Third Amendment to Lease dated June
1, 2011 by and between 229 W. 36th Street Partnership LP and American Language Communication Center, Inc.

 

2.Second Amendment to Lease dated November
13, 2009 by and between 229 W. 36th Street Partnership LP and American Language Communication Center, Inc.

 

3.Confirmation of 2nd Floor
Rent Commencement dated July 1, 2009 by and between 229 W. 36th Street Partnership LP and American Language Communication
Center, Inc.

 

4.First Amendment to Lease dated November
5, 2008 by and between 229 W. 36th Street Partnership LP and American Language Communication Center, Inc.

 

5.Confirmation of Rent Commencement and
Term of Lease dated July 26, 2008 by and between 229 W. 36th Street Partnership LP and American Language Communication
Center, Inc.

 

6.Lease dated February 15, 2008 by and
between 229 W. 36th Street Partnership LP and American Language Communication Center, Inc.

 

7.Letter Agreement dated February 15,
2008 by and between 229 W. 36th Street Partnership LP and American Language Communication Center, Inc.

 

8.Lease Agreement dated February 11, 2011
by and between 229 W. 36th Street Partnership LP and D S Simon Productions, Inc.

 

9. “Good Guy” Guaranty dated
February 11, 2011 by Douglas S. Simon to and in favor of 229 W. 36th Street Partnership LP

 

10.Possession Date Agreement by and between
229 W. 36th Street Partnership LP and D S Simon Productions, Inc.

 

11.First Amendment to Lease dated December
21, 2007 by and between 229 W. 36th Street Partnership LP and Early Bird Delivery Systems, LLC, a/k/a Urban Express.

 

12.Lease Agreement dated January 18, 2002
by and between Handro Properties, LLC and Early Bird Delivery Systems, LLC, a/k/a Urban Express.

 

13.Landlord Subordination, Waiver, and
Consent Agreement dated October 29, 2010 by and between Early Bird Delivery Systems, LLC, a/k/a Urban Express, and 229 W. 36th
Street Partnership LP.

 

14. “Good Guy” Guaranty of
Lease Agreement dated January 18, 2002 by Michael Fiorito, Edward C. Kesselman and Bonnie Brogdan, owners of substantially all
of the membership interests of Early Bird Delivery Systems, LLC, a/k/a Urban Express, to and in favor of Handro Properties, LLC.

 

    	 

    	 	

    
15.Confirmation of Rent Commencement and
Term of Lease by and between 229 W. 36th Street Partnership LP and Early Bird Delivery Systems, LLC, a/k/a Urban Express.

 

16.Confirmation of Expansion Premises
Rent Commencement and Term of Lease between 229 W. 36th Street Partnership LP and Mobile Health Management Services,
Inc., signed by Mobile Health Management Services, Inc. on July 11, 2012.

 

17.First Amendment to Lease dated October
12, 2011 by and between 229 W. 36th Street Partnership LP and Mobile Health Management Services, Inc.

 

18.Lease Agreement dated September 30,
2011 by and between Mobile Health Management Services, Inc. and Professional Evaluation Medical Group, Inc.

 

19.License Agreement dated September 21,
2011 by and between Mobile Health Management Services, Inc. and Professional Evaluation Medical Group, Inc.

 

20.Letter Agreement dated March 29, 2010
between 229 W. 36th Street Partnership LP and Mobile Health Management Services, Inc.

 

21.Lease Agreement dated March 8, 2006
by and between Handro Management Corp., agent for Handro Properties LLC, and Record Press, Inc.

 

22.“Good Guy” Guaranty dated
March 8, 2006 by Hugh A. Wilmot, Jr. to and in favor of Handro Management Corp., agent for Handro Properties LLC.

 

23.Possession Date Agreement by and between
229 W. 36th Street Partnership LP and Spectaguard Acquisition LLC.

 

24.Lease Agreement dated May 10, 2011
by and between 229 W. 36th Street Partnership LP and Spectaguard Acquisition LLC.

 

25.Subordination Agreement, Acknowledgment
of Lease Assignment, Attornment, and Non-Disturbance Agreement dated May 6, 2011 by Allied Security Holdings, LLC.

 

26.Guaranty dated May __, 2011 by Allied
Security Holdings LLC to and for the benefit of 229 W. 36th Street Partnership LP.

 

27.Guaranty dated July 9, 2012 by Charles
C. Copeland and by Howard R. Holowitz to and in favor of 229 W. 36th Street Partnership LP.

 

28.Lease Agreement dated May 2, 2012 by
and between 229 W. 36th Street Partnership LP and Goldman Copeland Associates, Engineers, P.C.

 

 

    	 

    	 	

    

 

SCHEDULE
C

 

Service and Maintenance Agreements

 

1.Service Contract
dated August 29, 2012 by and between Newmark Grubb Knight Frank, as agent of 229 West 36th Street Partnership LP, and
Principal Building Services, LLC.

 

If this service contract
is terminated early before August 31, 2013, the unbilled portion of all amortized refinishing services in the amount of $810/month
need to be refunded to Principal Building Services, LLC.

 

2.Service Contract
dated May 1, 2011 by and between Grubb & Ellis Management Services, Inc., as agent of 229 West 36th Street Partnership
LP, and Collins Building Services, Inc.

 

3.Service Contract
dated March 17, 2010 by and between Grubb & Ellis Management Services, Inc., as agent of 229 West 36th Street partnership,
LP, and PS Marcato Elevator Co.

 

4.Service Contract
dated July 25, 2011 by and between Grubb & Ellis Management Services, Inc., as agent of 229 West 36th Street Partnership
LP, and AlliedBarton Security Services LLC.

 

5.Pest Control Service
Contract dated as of June 15, 2011 by and between Grubb & Ellis Management Services, Inc., as agent of 229 West 36th
Street Partnership LP, and K.E.B. Pest Control, LLC.

 

6.Service Contract
dated July 5, 2011 by and between Grubb & Ellis Management Services, Inc., as agent of 229 West 36th Street Partnership
LP, and Cross Fire & Security Co., Inc.

 

    	 

    	 	

    
 

 

 

SCHEDULE
D

 

Rent Roll and Arrears Report

 

[See Rent Roll Attached Hereto]

 

 

 

    	 

    	 	

    

SCHEDULE
E

 

Compliance

 

		(1)	Violation No. 34926012H from the Commissioner of the Department of Buildings of the City of New
York against 229 W. 36th Street Partnership, LP, dated as of April 30, 2012, regarding façade condition.

 

		(2)	2010 RPIE Non-Compliance Notice from the New York City Department of Finance to 229 W. 36th
Street Partnership LP, dated as of November 9, 2011, regarding a failure to file the annual Real Property Income and Expense Statement.

 

		(3)	Letter of Defect from the Fire Department
                                                           Bureau of Fire Prevention Fire Alarm Inspection Unit to 229 West 36
                                                           Street Partnership, dated as of April 11, 2012, detailing certain deficiencies
                                                           relating to the fire alarm electrical equipment.1

 

		(4)	Expired temporary Certificate of Occupancy Number 110091882T017.

 

 

 

 

 

 

1 Each of these deficiencies
has been addressed and Seller has scheduled its follow up inspection for November 9, 2012, at which time it is anticipated that
all such deficiencies shall be deemed cleared.

 

    	 

    	 	

    
 

SCHEDULE
F

 

Litigation

 

None.

 

 

 

 

    	 

    	 	

    
SCHEDULE G

 

[See
Chicago Title Company Title Report Attached Hereto]

 

 

 

 

    	 

    	 	

    
 

SCHEDULE
H

 

Letters of Credit

 

7.Letter of Credit in the amount of $1,500,000.00
by American Language Communication Center, Inc.

 

8.Letter of Credit in the amount of $151,245.00
by Mobile Health Management, Inc.

 

9.Letter of Credit in an amount of $190,000.00
by Goldman Copeland Associates Engineers PC

 

10.Letter of Credit in the amount of $157,500
by Early Bird Delivery Systems, LLC

 

    	 

    	 	

    
 

 

SCHEDULE
I

 

Form of Tenant Estoppel Statement

 

		Re:	Lease Agreement dated [__________________] between 229 W. 36TH STREET PARTNERSHIP LP, as “Landlord”,
and [___________], as “Tenant”, for premises located at 229 West 36th Street, New York, New York
(as so amended, “Lease”).

 

		To:	[__________________________] (“Purchaser”), any mortgagee of Purchaser and their respective successors and
assigns:

 

The undersigned Tenant under the Lease
certifies that as of the date, the status of the Lease is as follows:

 

		(5)	The Lease constitutes the entire agreement between the Landlord and the Tenant with respect to
the demised premises identified therein, and has not been further amended, modified or supplemented except as follows _____________________________.
[Insert none” if applicable.]

 

		(6)	The Lease is in full force and effect, and the Tenant does not have nor is the Tenant entitled
to any credit, offsets or claim against the obligation to pay rent or other charges, either by reason of prepayment thereof, Landlord’s
acts or omissions, or for any other reason otherwise.

 

	(7)	(a)	The commencement date of the Lease was ____________
and the expiration date of the Lease is ____________.

 

		(b)	The Tenant has no option to renew the Lease, other
than ________________________________________________________.

 

		(c)	Monthly base rent, currently and future, is payable
as set forth in Schedule “A” annexed hereto.

 

		(d)	The Tenant is responsible for payment of any tax on
rents.

 

		(8)	The Tenant is open for business in the premises.

 

		(9)	The Tenant has no right to cancel or terminate the Lease, no option or right to purchase the Property
or any part thereof and no right of first refusal whatsoever.

 

		(10)	The security deposit held by the Landlord on the date hereof in accordance with the Lease is $_____________.

 

		(11)	All monthly base rent, common area maintenance charges, real estate taxes, additional rent and
other sums payable by the Tenant under the Lease have been fully paid in accordance with the provisions of the Lease.

 

    	 

    	 	

    

		(12)	The Tenant has not been granted and is not entitled to any free rental or any concession in an
abatement of rent. Any and all tenant improvement allowances have been paid to Tenant.

 

		(13)	All work, if any, to be performed by the Landlord has been heretofore completed to the full satisfaction
of the Tenant.

 

		(14)	No default exists under the Lease on the part of either the Landlord or the Tenant, and no event
has occurred and no condition exists, with the giving of notice or the passage of time, or both, will constitute a default under
the Lease.

 

		(15)	Installation of rent has not been paid more than one (1) month in advance.

 

		(16)	The Lease has been guaranteed by _______________________ (the “Guarantor”) and
such guaranty is in full force and effect [If no guarantor, then this section to be deleted].

 

		(17)	No actions, whether voluntary or otherwise, are pending against Tenant [or Guarantor] under the
bankruptcy laws of the United States or any state and there are no claims or action pending against Tenant [and/or Guarantor] which
if decided against Tenant [and/or Guarantor] would materially and adversely affect Tenant’s [or Guarantor’s] financial
condition or ability to perform Tenant’s [and/or Guarantor’s] obligations under, or in respect of, the Lease.

 

This certificate shall be binding upon
the Tenant and its successors and assigns (if any) and is given with the knowledge that it may be relied upon by Purchaser, any
mortgagee of Purchaser, and their respective successors and assigns

 

Dated: ____________________ ____, 2012                            Tenant:
________________________

 

    	 

    	 	

    
 

 

 

 

SCHEDULE
J

 

Security Deposits

 

11.Security
deposit in the amount of $70,540.86, together with interest earned thereon in the amount of $757.59, from Record Press, Inc.

 

12.Security
deposit in the amount of $360,220.00, together with interest earned thereon in the amount of $29.59, from Spectaguard Acquisition
LLC 

 

13.Security
deposit in the amount of $40,743.00, together with interest earned thereon in the amount of $51.06, from Mobile Health Management
Services, Inc. 

 

14.Security
deposit in the amount of $46,440.00, together with interest earned thereon in the amount of $129.54, from D.S. Simon Productions
Inc.

 

15.Letter
of Credit in the amount of $1,500,000.00 by American Language Communication Center, Inc. 

 

16.Letter
of Credit in the amount of $151,245.00 by Mobile Health Management, Inc. 

 

17.Letter
of Credit in an amount of $190,000.00 by Goldman Copeland Associates Engineers PC 

 

18.Letter
of Credit in the amount of $157,500 by Early Bird Delivery Systems, LLC 

 

    	 

    	 	

    
 

 

SCHEDULE
K

 

Fielder Contract

 

[See
Fielder Contract Attached Hereto]

    	 

    	 	

    

SCHEDULE L

 

Permits

 

19.Certificate to Operate Boiler dated
November 17, 2011 given by the New York City Department of Environmental Protection to Grubb & Ellis Management Services, as
agent of 229 West 36th Street Partnership LP, and Collins Building Services, Inc.

 

 

    	 

    	 	

    

 

SCHEDULE
M

 

Survey

 

[See
Survey Attached Hereto]

 

 

    	 

    	 	

    
 

 

 

SCHEDULE N

 

Intentionally deleted.

 

 

 

    	 

    	 	

    

 

 

SCHEDULE
o

 

Intentionally deleted.

 

 

 

 

 

    	 

    	 	

    
 

SCHEDULE
P

 

Pending Real Estate Tax Adjustment

 

Petition
filed by Jay Arthur Goldberg, P.C. for Review of Real Property Assessments filed in the Supreme Court of the State of New York,
County of New York on or about October 12, 2012 regarding 2012-2013 real property taxes.TGH Exhibit 31.2

Exhibit 31.2
 
CERTIFICATION PURSUANT TO RULE 13a-14(a) AND RULE 15d-14(a)
OF THE SECURITIES EXCHANGE ACT OF 1934
 
I, Jay Peterson, certify that:
		
	1.
	I have reviewed this Quarterly Report on Form 10-Q of Thermon Group Holdings, Inc.;

		
	2.
	Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

		
	3.
	Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

		
	4.
	The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) for the registrant and have:

		
	a)
	Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

		
	b)
	Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

		
	c)
	Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

		
	d)
	Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

		
	5.
	The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

		
	a)
	All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

		
	b)
	Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

 
	
			
	Date: November 13, 2012
	 
	 

	 
	By:
	/s/ Jay Peterson

	 
	Name:
	Jay Peterson

	 
	Title:
	Chief Financial Officer

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