Document:

Exhibit 10.18

 

SCHOOL DESIGN, CONSTRUCTION, FUNDING AND
PURCHASE AGREEMENT

between

TPHGREENWICH OWNER LLC,

as developer

and

NEW YORK CITY SCHOOL CONSTRUCTION AUTHORITY

Dated as of December 22, 2017

 

     

     

    

 

TABLE OF CONTENTS

 

	 	 	Page
	 	 	 
	Article I CERTAIN DEFINITIONS	1
	 	 	 
	Section 1.01	Certain Definitions	1
	 	 	 
	Article II TERM; LPC APPROVAL; CONSTRUCTION LOAN; MASTER LEASE AND SUBLEASE	9
	 	 	 
	Section 2.01	Term	9
	 	 	 
	Section 2.02	LPC Approval.	9
	 	 	 
	Section 2.03	Construction Loan	9
	 	 	 
	Section 2.04	Master Lease and Sublease	11
	 	 	 
	Article III SCHOOL BASE BUILDING WORK AND SCHOOL FIT-OUT WORK; CONSTRUCTION DRAWINGS AND ESTIMATES	12
	 	 	 
	Section 3.01	School Base Building Work and School Fit-Out Work	12
	 	 	 
	Section 3.02	School Base Building Design Consultants	14
	 	 	 
	Section 3.03	School Base Building Construction Drawings	14
	 	 	 
	Article IV AWARD OF CONTRACTS;  COMMENCEMENT AND PERFORMANCE OF SCHOOL BASE BUILDING WORK AND SCHOOL FIT-OUT WORK	17
	 	 	 
	Section 4.01	Construction Manager for School Base Building Work; Award of Contracts for School Base Building Work	17
	 	 	 
	Section 4.02	General Contractor for School Fit-Out Work	18
	 	 	 
	Section 4.03	Commencement and Performance of School Base Building Work; SCA Termination Option for Failure to Commence Construction; Developer Termination Option for Failure to Obtain Construction Loan	18
	 	 	 
	Section 4.04	Intentionally omitted	19
	 	 	 
	Section 4.05	Construction Schedule	19
	 	 	 
	Section 4.06	Methods and Materials	19
	 	 	 
	Section 4.07	SCA’s Project Representative; Coordination Meetings	19

 

    - i -

     

    

 

TABLE OF CONTENTS

(continued)

 

	 	Page
	 	 
	Article V PUBLIC SCHOOL PROJECT COSTS; REQUISITIONS AND PAYMENT OF REQUISITIONS; SAVINGS; CHANGE ORDERS AND DELAYS	20
	 	 	 
	Section 5.01	Public School Project Costs; Responsibility for Public School Project Costs; SCA Obligation to Obtain and Deliver CP to Developer	20
	 	 	 
	Section 5.02	Requisitions and Payment of Public School Project Costs	21
	 	 	 
	Section 5.03	Intentionally omitted	29
	 	 	 
	Section 5.04	Change Orders	29
	 	 	 
	Section 5.05	Delays	32
	 	 	 
	Section 5.06	SCA Audit Rights	34
	 	 	 
	Section 5.07	SCA Pre- and Post-Turnover Work	34
	 	 	 
	Section 5.08	MEP Equipment	34
	 	 	 
	Article VI SUBSTANTIAL COMPLETION; COMPLETION OF PUNCH LIST ITEMS; ACCESS FOR SCHOOL BASE BUILDING WORK AND SCHOOL F&E WORK: WARRANTIES	35
	 	 	 
	Section 6.01	Substantial Completion of School Base Building Work and Completion of Punch List Items	35
	 	 	 
	Section 6.02	“Stand-By” Labor Costs	38
	 	 	 
	Section 6.03	Beneficial Interest in Warranties	38
	 	 	 
	Article VII EXPEDITED JAMS ARBITRATION	38
	 	 	 
	Section 7.01	Expedited Arbitration	38
	 	 	 
	Section 7.02	Selection of Arbitrators; Arbitration Procedure	39
	 	 	 
	Article VIII INSURANCE AND INDEMNITIES	39
	 	 	 
	Section 8.01	Developer’s Insurance Coverages	39
	 	 	 
	Section 8.02	SCA’s Insurance Coverages	41
	 	 	 
	Section 8.03	Waiver of Subrogation	42

 

    - ii -

     

    

 

TABLE OF CONTENTS

(continued)

 

	 	 	Page
	 	 	 
	Section 8.04	Indemnification	42
	 	 	 
	Article IX DEFAULT AND REMEDIES; CERTAIN TERMINATION PROVISIONS	43
	 	 	 
	Section 9.01	Default by Developer; SCA’s Remedies	43
	 	 	 
	Section 9.02	Default by SCA; Developer’s Remedies	45
	 	 	 
	Section 9.03	Certain Termination Provisions	46
	 	 	 
	Article X CONDITIONS TO CLOSING; CLOSING; PCO	47
	 	 	 
	Section 10.01	Closing Conditions	47
	 	 	 
	Section 10.02	Right to Waive Conditions	48
	 	 	 
	Section 10.03	Closing and Closing Date	48
	 	 	 
	Section 10.04	Developer’s Closing Deliveries	48
	 	 	 
	Section 10.05	SCA’s Closing Deliveries	49
	 	 	 
	Section 10.06	Title Insurance Premiums; Apportionments; “True-Up” Adjustment to Purchase Price	49
	 	 	 
	Section 10.07	Payment of Common Charges	50
	 	 	 
	Section 10.08	Developer’s Right of Access	50
	 	 	 
	Section 10.09	Casualty; Condemnation	50
	 	 	 
	Section 10.10	PCO	51
	 	 	 
	Article XI REMOVAL OF TITLE DEFECTS	51
	 	 	 
	Section 11.01	Curing Title Defects	51
	 	 	 
	Section 11.02	Title Affidavits	52
	 	 	 
	Article XII REPRESENTATIONS, WARRANTIES; COVENANTS AND RESTRICTIONS; COMPLETION GUARANTY AND BAD BOY GUARANTY	52
	 	 	 
	Section 12.01	Developer’s Representations	52
	 	 	 
	Section 12.02	SCA’s Representations	52

 

    - iii -

     

    

 

TABLE OF CONTENTS

(continued)

 

	 	 	Page
	 	 	 
	Section 12.03	Condominium Documents Covenants	53
	 	 	 
	Section 12.04	Completion Guaranty; Construction Lender’s Failure to Fund; and Bad Boy Guaranty	53
	 	 	 
	Article XIII CONDOMINIUM DOCUMENTS	54
	 	 	 
	Section 13.01	Approval of Condominium Documents	54
	 	 	 
	Article XIV NOTICES	55
	 	 	 
	Section 14.01	Notices	55
	 	 	 
	Section 14.02	All notices shall be deemed effective upon receipt	56
	 	 	 
	Article XV MISCELLANEOUS	56
	 	 	 
	Section 15.01	Further Assurances	56
	 	 	 
	Section 15.02	Governing Law	56
	 	 	 
	Section 15.03	Amendments and Waivers in Writing	56
	 	 	 
	Section 15.04	Delays not a Waiver	56
	 	 	 
	Section 15.05	Execution in Counterparts	57
	 	 	 
	Section 15.06	Exhibits; Headings	57
	 	 	 
	Section 15.07	Assignments of this Agreement	57
	 	 	 
	Section 15.08	Binding on Permitted Successors and Assigns	57
	 	 	 
	Section 15.09	Remedies	57
	 	 	 
	Section 15.10	Submission to Jurisdiction	57
	 	 	 
	Section 15.11	Severability	58
	 	 	 
	Section 15.12	No Rights in Third Parties; Not Joint Venture Partners	58
	 	 	 
	Section 15.13	No Construction Against Draftsperson	58
	 	 	 
	Section 15.14	Broker	58
	 	 	 
	Section 15.15	Survival	58

 

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TABLE OF CONTENTS

(continued)

 

	 	 	Page
	 	 	 
	Section 15.16	Exculpation	58
	 	 	 
	Section 15.17	Acknowledgment Regarding Play Areas	58

 

Exhibits

 

	Exhibit A	Legal Description
	Exhibit B	Permitted Encumbrances
	Exhibit C	Master Lease
	Exhibit D	Sublease
	Exhibit E	Intentionally Omitted
	Exhibit F	Intentionally Omitted
	Exhibit G	Description of Hard Cost Allocation and Land Value and Soft Cost Allocation
	Exhibit H	Guidelines for Payment of Installments of the Land Value Payment and Construction Supervision Fee
	Exhibit I	School Program
	Exhibit J	MEP Equipment
	Exhibit K	Intentionally Omitted
	Exhibit L	SCA Pre- and Post-Turnover Work
	Exhibit M	School Fit-Out Construction Drawings
	Exhibit N	Construction Schedule
	Exhibit O	Breakdown of Public School Project Costs by Category
	Exhibit P	Form of Requisition
	Exhibit Q	Intentionally Omitted
	Exhibit R	Form of Owner’s Title Affidavit
	Exhibit S	Completion Guaranty to SCA
	Exhibit T	Condominium Declaration and Condominium Bylaws
	Exhibit U	Memorandum of Master Lease
	Exhibit V	Memorandum of Sublease
	Exhibit W	Termination of Memorandum of Master Lease
	Exhibit X	Termination of Memorandum of Sublease
	Exhibit Y	100% School Base Building CD’s (inclusive of commissioning document and addendums 1-6)

 

    - v -

     

    

 

SCHOOL DESIGN, CONSTRUCTION, FUNDING
AND PURCHASE AGREEMENT

 

THIS SCHOOL DESIGN, CONSTRUCTION, FUNDING
AND PURCHASE AGREEMENT (this “Agreement”) made as of December 22, 2017 by and between TPHGREENWICH OWNER LLC,
a Delaware limited liability company having an address c/o Trinity Place Holdings Inc., 340 Madison Avenue, Suite 3C, New York,
NY 10173 (“Developer”) and the NEW YORK CITY SCHOOL CONSTRUCTION AUTHORITY, a public benefit corporation of
the State of New York having its principal office at IDCNY Center 1, 30-30 Thompson Avenue, Long Island City, New York 11101 (the
“SCA”).

 

RECITALS

 

A.       Developer
and/or its affiliates are the owners of the Land (as hereinafter defined) and intend to develop the Project (as hereinafter defined)
thereon.

 

B.       SCA
desires to enter into an agreement with Developer pursuant to which, subject to and upon the terms and conditions hereof, (i) Developer
will lease the Land to SCA pursuant to the Master Lease (as hereinafter defined); (ii) SCA will sublease the Land (excluding
the space that will comprise the School Unit (as hereinafter defined) to Developer pursuant to the Sublease (as hereinafter defined);
(iii) Developer will cause the School Unit (as hereinafter defined) to be designed and constructed by causing performance of the
School Base Building Work (as such term is hereinafter defined), and SCA will provide funding for such design and for such construction
of the School Base Building Work; and (iv) upon Substantial Completion (as hereinafter defined) of the School Base Building
Work (as hereinafter defined) and recordation of the Condominium Declaration (as hereinafter defined), SCA shall purchase the School
Unit from Developer and perform the School Fit-Out Work.

 

C.       The
parties wish to set forth their understandings regarding, inter alia, (i) the design and construction of the School Unit, (ii)
the funding of such design and construction, (iii) the rights and obligations of Developer and SCA in connection with conveyance
of the School Unit to SCA, and (iv) such other matters as are set forth in this Agreement.

 

D.       The
transaction contemplated by this Agreement has been approved or deemed approved by the Mayor of the City of New York (the “Mayor”),
following approval of said site plan by the New York City Council (the “City Council”) by resolution adopted
in accordance with Section 1732 of the New York Public Authorities Law.

 

NOW, THEREFORE, in consideration of the
promises and obligations of Developer and SCA set forth in this Agreement, subject to the terms of this Agreement, and intending
to be legally bound hereby, Developer and SCA hereby covenant and agree as follows:

 

Article
I

 

CERTAIN DEFINITIONS

 

Section 1.01  Defined Terms.
The following words and phrases (to the extent not defined in the first paragraph of this Agreement or the recitals to this
Agreement) shall have the following meanings for purposes of this Agreement:

 

     

     

    

 

“100% School Base Building CD’s”
has the meaning set forth in Section 3.03(g)(i) hereof.

 

“Affiliate” means, with
respect to any Person, a Person that directly or indirectly, through one or more intermediaries, controls, is controlled by or
is under common control with, such Person. For purposes hereof, the term “control” (including the related terms “controlled
by” and “under common control with”) means the possession, directly or indirectly, of twenty percent (20%) or
more of the ownership interest in such entity or the power to direct or cause the direction of management and policies of an entity
(whether through the ownership of voting securities or other ownership interest, by contract or otherwise).

 

“Agreement” means this
Agreement and the exhibits attached hereto (or subsequently incorporated herein through amendments hereto), as the same may be
amended from time to time.

 

“Arbitrator” has the
meaning set forth in Section 7.02 hereof.

 

“Base Building Hard Cost Allocation”
has the meaning set forth in Section 3.01(a)(ii) hereof.

 

“Board of Managers” means
the board of managers or other governing board of the Condominium, elected by the Unit Owners in accordance with the provisions
of the Condominium Documents.

 

“Building” means, as
the same exists from time to time, the building and other improvements to be constructed on the Land in accordance with this Agreement
(including the landmarked Dickey House).

 

“Business Days” means
any day other than (1) a Saturday or a Sunday, or (2) a New York City holiday (as determined by the New York City Office of Payroll
Administration).

 

“Business Hours” means
7:00 a.m. – 5:00 p.m. on Business Days.

 

“Capital Project Certificate”
– see definition of “Evidence of Sufficient Funds” below.

 

“Catch-Up Requisition”
has the meaning set forth in Section 5.02(a)(i) hereof.

 

“Change Order” has the
meaning set forth in Section 5.04 hereof.

 

“City” means The City
of New York.

 

“City Council” has the
meaning set forth on page 1.

 

“Closing” means the conveyance
of the School Unit and the appurtenant undivided interest in the Common Elements by Developer to SCA.

 

“Closing Date” has the
meaning set forth in Section 10.03.

 

    	 	-2-	 

     

    

 

“Commence[ment of] Construction
of the School Base Building Work” has the meaning set forth in Section 4.03(b).

 

“Common Elements” has
the meaning ascribed to it in the Condominium Documents.

 

“Completion Guaranty to SCA”
has the meaning set forth in Section 12.04.

 

“Condominium” means the
condominium to be created for the Land and Building.

 

“Condominium Bylaws”
has the meaning set forth in the Condominium Declaration.

 

“Condominium Declaration”
or “Declaration” means that certain Condominium Declaration made by Developer, as Declarant, with respect to
the Condominium.

 

“Condominium Documents”
means collectively the Condominium Declaration, the Condominium Bylaws, and house rules referred to in either of the foregoing
that relate to, restrict or govern or otherwise affect the ownership, use or operation of all or any portion of the Condominium,
and any other agreements or documents related to the establishment of the Condominium (including, without limitation, tax lot drawings).

 

“Construction Commencement Deadline”
has the meaning set forth in Section 4.03(b).

 

“Construction Manager”
means Gilbane Residential Construction LLC or its replacement.

 

“Construction Schedule”
has the meaning set forth in Section 4.05 hereof.

 

“CP” – see definition
of “Evidence of Sufficient Funds” below.

 

“Deed” has the meaning
set forth in Section 10.04(a) hereof.

 

“Developer” has the meaning
set forth on page 1.

 

“Construction Supervision Fee”
has the meaning set forth in Section 3.01(c)(i) hereof.

 

“Developer Indemnitees”
means Developer, Developer’s consultants and each of their respective trustees, directors, officers, shareholders, partners,
members, direct or indirect investors, managers, agents and employees, and their respective successors and assigns.

 

“Dispute Notice” has
the meaning set forth in Section 7.02 hereof.

 

“Effective Date” means
the date hereof.

 

    	 	-3-	 

     

    

 

“Eligible Costs” means
capital costs of the Project consisting of: (a) costs for planning, design, engineering, and architectural services; (b) environmental
work including surveys, maps, plans, estimates, and environmental reports; (c) construction costs including materials and labor;
(d) costs of a construction manager to perform construction management services; (e) cost of supervising the work of outside vendors;
(f) builder’s risk and other applicable insurance; (g) costs of payment and performance bonds required by this Agreement
and/or required by the Construction Manager; and (h) services to the extent they are necessary for the operation of the site as
a construction site including utilities, snow and debris removal, fire sprinkler tests, security, building protection, and extermination.
Notwithstanding anything herein to the contrary, the foregoing costs are considered Eligible Costs only to the extent such costs
and expenses are financeable by the City of New York, in the City of New York’s sole discretion, with the proceeds of tax-exempt
bonds pursuant to the New York State Local Finance Law, the Internal Revenue Code of 1986, as amended, the City Charter, the directives
of the City Comptroller and any other applicable laws or regulations.

 

“Evidence of Sufficient Funds”
means evidence of funds then available to SCA for payment of SCA’s obligations under this Agreement, such evidence to consist
of (A) one or more so-called “CP’s” or Capital Project Certificate(s), executed pursuant to Section
219 of the New York City Charter by the Director of Management and Budget (or any successor thereto) or his or her duly authorized
representative, stating that the required funds are available for use by SCA for the designated purposes(s), or (B) such other
evidence of funds then available to SCA as shall be acceptable to Developer in Developer’s sole and absolute discretion.

 

“F&E” has the meaning
set forth in Section 3.01(b) hereof.

 

“Force Majeure” means
any failure of or delay in the availability of any public utility; any strikes or labor disputes; any not reasonably foreseeable
delays or shortages encountered in transportation, fuel, material or labor supplies; casualties; condemnations; acts of God or
the public enemy; governmental restrictions; injunctions; unanticipated subsurface conditions; unanticipated extent of a subsurface
condition; third-party litigation; other acts or occurrences beyond the reasonable control of a party; provided, however, that
any of the foregoing events or occurrences shall not be a Force Majeure event if caused, either directly or indirectly, by the
party claiming Force Majeure, and in no event shall a failure or delay due to Developer’s lack of funds constitute an event
of Force Majeure.

 

“Government Entity” means
the United States; the State of New York; the City; any other political subdivision of any of the foregoing; and any agency, authority,
department, court, commission or other legal entity of any of the foregoing.

 

“Incomplete School Base Building
Work” has the meaning set forth in Section 6.01(b)(ii) hereof.

 

“Interparty Agreement”
means that certain Interparty Agreement dated of even date hereof by and among SCA, Developer and Massachusetts Mutual Life Insurance
Company, or any similar type agreement entered into among SCA, Developer, its successor or assign, and any Subleasehold Lender
with respect to any Subleasehold Mortgage (as defined in the Sublease) permitted under the terms of the Interparty Agreement dated
of even date hereof.

 

“Land” means Block 19,
Lots 11 and 13, New York, New York (known as 28-42 Trinity Place, New York, New York), and as more particularly described on Exhibit
A.

 

“Land Value and Soft Cost Allocation”
has the meaning set forth in Section 3.01(a)(ii).

 

“Land Value Payment”
has the meaning set forth in Section 5.01(a)(i) hereof.

 

    	 	-4-	 

     

    

 

“Legal Requirement(s)”
means laws, statutes and ordinances, including, without limitation, New York City building codes, approvals, permits and zoning
regulations (including without limitation the Zoning Resolution of the City of New York), and ordinances; and the orders, rules,
regulations, interpretations, directives and requirements of all federal, state, county, city and borough departments, bureaus,
boards, agencies, offices, commissions and other sub divisions thereof, or of any official thereof, or of any other governmental
public or quasi public authority, whether now or hereafter in force; and all requirements, obligations and conditions of all instruments
of record which may be applicable to the Land and the School Unit or the streets, roads, avenues, sidewalks, curbs or areas or
vaults adjacent thereto, and any case law. With respect to the School Fit-Out Work (but not the School Base Building Work), “Legal
Requirements” shall also include, if and to the extent applicable, the pre-qualification of contractors pursuant to Sections
1734 and 1735 of the New York Public Authorities Law and the pre-qualification of contractors, prevailing wages, and provisions
of that certain Memorandum of Understanding Between the New York City School Construction Authority and Building & Construction
Trade Council of Greater New York dated as of the October 5, 2004.

 

“Legal Proceeding” means
an action, litigation, arbitration, administrative proceeding and other legal or equitable proceeding of any kind.

 

“Major Event” means either
of the following occurring before the Closing:

 

(a)       a
fire or other casualty causing damage or destruction to the Building or

 

(b)       the
giving of official notice by a Government Entity of a condemnation or taking under the power of eminent domain of any part of the
Land or the Building,

 

which, in either case, is so substantial that construction or
restoration of the Project is not economically practicable (with or without insurance proceeds or condemnation awards), as reasonably
determined by Developer.

 

“Mayor” has the meaning
set forth on page 1.

 

“NYC Indemnitees” has
the meaning set forth in Section 2.03(c).

 

“Permitted Encumbrances”
means the encumbrances and other title matters described in Exhibit B attached hereto or as otherwise expressly identified
herein.

 

“Permitted Lender” shall
mean an EB-5 lender with the experience, track record and resources necessary to complete the contemplated loan transaction, as
determined in the reasonable discretion of Developer.  Notwithstanding anything to the contrary in the foregoing, in no event
shall an Unqualified Person be considered a Permitted Lender.

 

“Person” means an individual
person, a corporation, partnership, trust, joint venture, limited liability company, proprietorship, estate, association, land
trust, other trust, Government Entity or other incorporated or unincorporated enterprise, entity or organization of any kind.

 

“Pre-Development Costs”
means School Base Building Soft Costs incurred prior to the Catch-Up Requisition.

 

    	 	-5-	 

     

    

 

“Project” means the design,
construction and development of the Building by Developer.

 

“Property” means the
Land and some or all (as the context requires) of the improvements located thereon.

 

“Public School” –
see definition of “School Unit” below.

 

“Public School Project Costs”
has the meaning set forth in Section 5.01(a) hereof.

 

“Public School Project Costs Not-to-Exceed
Amount” means Ninety Seven Million Six Hundred Twenty Two Thousand Four Hundred Sixty One and No Dollars ($97,622,461.00).

 

“Punch List Items” has
the meaning set forth in Section 6.01(a) hereof.

 

“Purchase Price” means
One Hundred Four Million Three Hundred Sixty One Thousand Nine Hundred Fifty Nine and No Dollars ($104,361,959.00).

 

“Qualified Developer”
means an entity that, at the time of the initial determination of its status as a Qualified Developer, (a) (i) is controlled by
one or more individuals who have at least ten (10) years of experience ("Developer Experience") in the development
and/or renovation of real estate projects reasonably comparable to the work to be performed by Developer under this Agreement,
(ii) with respect to Lender (as defined in the Interparty Agreement), its affiliates or an insurance company of similar size and
experience as Lender, retains an owner’s representative with Developer Experience, or (iii) solely with respect to Lender
and its affiliates, has an officer with Developer Experience with respect to major construction projects who is responsible for
the Project, (b) is (or has an affiliate which is) a construction manager or general contractor or retains a construction manager
or general contractor with at least ten (10) years of experience in the development, construction and/or renovation of real estate
projects reasonably comparable to the work to be performed by Developer or its construction manager under this Agreement, and (c)
is not an Unqualified Person.

 

“Qualified Lender” means
(a) a savings and loan association; (b) a savings bank; (c) a commercial bank or trust company (whether acting individually or
in a fiduciary capacity); (d) an insurance company; (e) an educational, state, municipal or similar public employees’ welfare,
pension or retirement fund or system or any other corporation or organization subject to supervision and regulation by the insurance
or banking departments of any State of the United States or the United States Treasury, or any successor department or departments
hereafter exercising the same functions as said departments; (f) an investment banking firm or other financial institution, a private
equity or investment fund or other entity regularly engaged in the business of providing debt or mezzanine financing or preferred
equity, a real estate investment trust, an institution that qualifies as a REMIC under the Internal Revenue Code of 1986, as amended,
a trustee or issuer of collateralized mortgage obligations, a loan conduit or other similar investment entity (whether any of the
foregoing shall be acting individually or in any fiduciary capacity); (g) any governmental agency or entity insured by a governmental
agency; or (h) any entity substantially similar to any of the foregoing and which is generally commercially treated as an institutional
investor or institutional trustee, servicer or fiduciary, any combination of the forgoing entities or any other entity or entities
all of the equity owners of which are Qualified Lenders under another clause of this definition; provided any of the foregoing
Persons in clauses (a) through (h) inclusive: (i) shall be subject to service of process within the United States of America; (ii)
(other than in the case of a governmental agency, entity insured by a governmental agency, public benefit corporation or a pass-through
conduit for securities issued by a governmental or quasi-governmental agency or public benefit corporation, or any subsidiary of
the forgoing) shall have, at the time of the initial determination of its status as a Qualified Lender, either individual or combined
net worth, capital, statutory surplus, shareholder's equity, committed capital net of all liabilities, or assets under management
net of all liabilities of at least $500,000,000; and (iii) is willing to enter into an Interparty Agreement (as defined in
Section 2.03(b)).

 

    	 	-6-	 

     

    

 

“Real Estate Taxes” means
all taxes, assessments and special assessments, general or special, ordinary or extraordinary, foreseen or unforeseen, of any kind
or nature whatsoever, levied, assessed or imposed at any time upon or against the Property and/or any part thereof

 

“Requisition” has the
meaning set forth in Section 5.02(b)(i) hereof.

 

“Requisition Payment Due Date”
means within fifteen (15) days after the Public School Project Costs included in a Requisition have been approved or deemed approved,
or within fifteen (15) days after an Arbitrator’s determination approving any disputed Public School Project Costs (unless,
pursuant to Article VII hereof, SCA is not permitted to withhold such payment pending such dispute, in which event SCA shall make
such payment within fifteen (15) days after the determination by Developer’s construction lender as set forth in Article
VII hereof), but in no event prior to the date of the closing of the Construction Loan.

 

“Retainage” has the meaning
set forth in Section 5.02(d) hereof.

 

“SCA” has the meaning
set forth on page 1.

 

“SCA Damages Amount”
has the meaning set forth in Section 9.01(d) hereof.

 

“SCA Delay” has the meaning
set forth in Section 5.05(a)(i) hereof.

 

“SCA Indemnitees” means
SCA, SCA’s consultants and each of their respective trustees, directors, officers, shareholders, partners, members, managers,
agents and employees, and their respective successors and assigns.

 

“SCA’s Inspection Consultants”
has the meaning set forth in Section 6.01(b)(ii) hereof.

 

“SCA Pre- and Post-Turnover Work”
means the work described on Exhibit L annexed hereto.

 

“SCA’s Project Representative”
has the meaning set forth in Section 4.07(a) hereof.

 

“School Base Building Architect”
has the meaning set forth in Section 3.02 hereof.

 

“School Base Building First Confirmation
Notice” has the meaning set forth in Section 6.01(b)(ii) hereof.

 

    	 	-7-	 

     

    

 

“School Base Building Hard Costs”
has the meaning set forth in Section 5.01(a)(iv) hereof.

 

“School Base Building Initial Notice”
has the meaning set forth in Section 6.01(b)(ii) hereof.

 

“School Base Building Soft Costs”
has the meaning set forth in Section 5.01(a)(iii) hereof.

 

“School Base Building Substantial
Completion Notice” has the meaning set forth in Section 6.01(b)(ii) hereof.

 

“School Base Building Work”
has the meaning set forth in Section 3.01(a)(v) hereof.

 

“School Base Building Work Revisions”
has the meaning set forth in Section 3.03(i)(i).

 

“School F&E Work”
has the meaning set forth in Section 3.01(b) hereof.

 

“School Fit-Out Architect”
means Dattner Architect.

 

“School Fit-Out Work”
has the meaning set forth in Section 3.01(b) hereof.

 

“School Program” has
the meaning set forth in Section 3.01(b) hereof.

 

“School Unit” means that
certain portion of the Building to consist of approximately 87,539 gross square feet, together with the applicable percentage of
Common Interest (as defined in the Condominium Documents). The School Unit is sometimes hereinafter referred to as the “Public
School”.

 

“Subleasehold Lender”
shall have the meaning given to such term in the Sublease.

 

“Substantial Completion”
and grammatical variations thereof have the meanings set forth in Section 6.01(a) hereof.

 

“Substantial Completion Date”
means the date on which Substantial Completion occurs.

 

“Title Defect” means
any encumbrance that is not a Permitted Encumbrance and that is recorded against or otherwise affects the School Unit or the Common
Elements serving such Unit.

 

“Title Insurer” means
Fidelity National Title Insurance Company and, if applicable, any co-insurer.

 

“Transfer Tax Forms”
has the meaning set forth in Section 10.04(b) hereof.

 

“Unit” has the meaning
ascribed to it in the Condominium Documents.

 

“Unqualified Person”
means a Person that (i) is in default or in breach, beyond any applicable grace period, of its material obligations under
any material written agreement with SCA (unless such default or breach has been waived in writing by SCA); or (ii) has been convicted
in a criminal proceeding for a felony involving fraud or defalcation.

 

    	 	-8-	 

     

    

 

Article
II

TERM; LPC APPROVAL; CONSTRUCTION LOAN; MASTER LEASE AND SUBLEASE

 

Section 2.01   Term.
The term of this Agreement shall commence on the date hereof and shall terminate on the date Developer and Purchaser have
satisfied all of their obligations hereunder unless sooner terminated pursuant to an express provision of this Agreement, subject
to the survival of any provisions that expressly or by their general intent survive the termination of this Agreement.

 

Section 2.02   LPC Approval.

 

(a)       SCA
acknowledges and agrees that (1) construction of the School Unit is subject to terms and conditions of the approval (the “LPC
Approval”) of the Landmarks Preservation Commission (“LPC”) as evidenced by the Status Update Letter
dated March 8, 2016, and (2) any work outside of the LPC Approval may require further approval from LPC.

 

Section 2.03   Construction Loan

 

(a)       Developer
intends to obtain a construction loan (a “Construction Loan”) in order to construct the Building. On or prior
to the closing of the Construction Loan, the existing mortgage encumbering the Property will be satisfied or assigned to the construction
lender. Unless the construction lender shall be a Qualified Lender, SCA shall have the right to approve the construction lender,
such approval not to be unreasonably withheld, conditioned or delayed. SCA shall have a further right to approve the loan documents
(to the extent the provisions thereof are, in any material respect, inconsistent with Developer’s obligations under this
Agreement), such consent not to be unreasonably withheld, conditioned or delayed. Without limitation, SCA may require that the
following matters be included in the loan documents for the benefit of SCA:

 

(i)       Subject
to Section 3.03(b) below, the construction lender must not permit any changes in the Project specifications or application of Construction
Loan proceeds in a manner inconsistent with Section 3.01(a)(vi) hereof regarding the size of the School Unit or that would otherwise
adversely affect the School Unit or its functionality or, except to a de minimis extent, operations of the School Program, without
the consent of SCA and the City of New York if such change (A) would be inconsistent in any material respect with the 100% School
Base Building CD’s (as applicable), or (B)(1) would adversely affect the functionality or, except to a de minimis extent,
operations of the School Program and/or (2) would cause the hard costs of the School Fit-Out Work to be increased (unless Developer
agrees to pay such excess).

 

(ii)       Performance
under the loan documents by Developer must meet the time requirements set forth in this Agreement.

 

(iii)      The
construction lender must, if it succeeds to the interest of Developer with respect to the Sublease (as defined below), cause the
project to be completed with a deed delivered for the School Unit, regardless of any remedy obtainable by the construction lender,
including foreclosure.

 

    	 	-9-	 

     

    

 

(iv)       If
the construction lender completes the Building it must use either a Qualified Developer or another developer approved by SCA and
the City of New York, such approval not to be unreasonably withheld, conditioned or delayed.

 

(v)       Any
purchaser of Developer’s interest in the Sublease in connection with a foreclosure of the mortgage securing the Construction
Loan or any successor-in-interest to such purchaser will complete the Building in accordance with this Agreement, deliver a deed
for the School Unit to the SCA as contemplated herein, and use either a Qualified Developer or another developer approved by SCA
and the City of New York (such approval not to be unreasonably withheld, conditioned or delayed) within a time period approved
by SCA (such approval not to be unreasonably withheld, conditioned or delayed).

 

(vi)       SCA
will have remedies upon a failure to complete and deliver the School Unit within an agreed upon amount of time, including the right
to cancel the Sublease if the construction lender defaults on its obligations and the construction lender fails to take adequate
steps to cure after it succeeds to Developer’s interest in the Sublease.

 

(vii)       SCA
shall be entitled to terminate the GMP Contract (as defined below) in the event Developer’s construction lender defaults
beyond notice and cure in its obligations to SCA after succeeding to Developer’s interest in the Sublease (a “Construction
Lender Event of Default”). In the event of a Construction Lender Event of Default, SCA may elect to perform the School
Base Building Work in accordance with its statutory procurement requirements but such performance by SCA shall not, in any material
respect, impair the development of the remainder of the Project.

 

(viii)      Developer’s
construction lender will either subordinate its mortgage on the fee interest in the Property to the Master Lease or provide SCA
with a subordination non-disturbance and attornment agreement;

 

(b)       SCA
will enter into the Interparty Agreement under which, if Developer defaults (beyond notice and cure) in its construction obligations,
if and when the construction lender succeeds to Developer’s interest under the Sublease, the construction lender will be
required to perform Developer’s construction obligations under this Agreement within a time period reasonably acceptable
to SCA. If a party other than a construction lender succeeds to Developer’s interest under the Sublease, that party will
have an obligation to fulfill such construction obligations. The Interparty Agreement will include the rights and obligations of
the parties in the event the construction lender or a successor does not or cannot complete the School Base Building Work. Also,
the Interparty Agreement will address (1) a default by Developer both before and after the conveyance of the School Unit to SCA,
and (2) who has priority with respect to the respective guaranties to be provided to each of SCA and the construction lender.

 

    	 	-10-	 

     

    

 

(c)       For
the avoidance of doubt, Developer’s financing of the Project may include EB-5 financing, even if the EB-5 lender is not a
Qualified Lender. So long as the EB-5 lender meets all of the criteria of a Permitted Lender, it shall have the rights of a Qualified
Lender hereunder. If a default under an EB-5 loan has occurred and is continuing, the EB-5 lender shall not be entitled to enforce
any of the rights applicable to a Qualified Lender under Article XV of the Sublease unless and until the EB-5 lender shall have
provided SCA with the applicable loan default notice.  Further, the EB-5 lender shall not be entitled to recognition under
the Sublease or a new sublease as contemplated by Article XV of the Sublease, unless and until the EB-5 lender is or engages a
Qualified Developer to perform any outstanding work required to be performed by Developer under this Agreement. In the event Developer
uses EB-5 financing, Developer agrees to indemnify, defend and hold harmless the SCA Indemnitees, DOE, New York City, and any agency
thereof (individually an “NYC Indemnitee” and collectively, the “NYC Indemnitees”) in the
event of any investigation, prosecution or other litigation related to EB-5 financing for the Project (but excluding any of the
foregoing arising out of the negligence, willful misconduct or breach of this Agreement by any NYC Indemnitee) and shall use counsel
chosen by Developer and reasonably acceptable to SCA, at the expense of the Developer. The foregoing sentence shall survive Closing
or termination of this Agreement. At the option of SCA, Developer will cause the EB-5 Lender to enter into an interparty agreement
with SCA as is contemplated with respect to a Qualified Lender.

 

Section 2.04   Master Lease and Sublease

 

(a)       At
the closing of the Construction Loan, Developer and SCA shall enter into the lease annexed hereto as Exhibit C (the “Master
Lease”) and the sublease annexed hereto as Exhibit D (the “Sublease”), and will execute, notarize
and cause to be recorded the Memorandum of Master Lease annexed hereto as Exhibit U and the Memorandum of Sublease annexed hereto
as Exhibit V (which memoranda of lease will be recorded before Developer’s construction lender’s mortgage, with the
Memorandum of Master Lease being recorded before the Memoranda of Sublease). Upon any termination of the Master Lease and Sublease
(including at Closing), Developer and SCA shall promptly execute, notarize and record the termination of Memorandum of Master Lease
annexed hereto as Exhibit W and the termination of Memorandum of Sublease annexed hereto as Exhibit X (collectively, the “MOL
Terminations”), which obligation shall survive the termination of this Agreement. The parties will complete, execute
and record any transfer tax forms required in connection with all of the foregoing. SCA is exempt from State of New York and City
of New York transfer taxes with respect to the Master Lease and the Sublease and SCA shall provide such materials (if any) as the
applicable governmental authorities shall require to evidence such exemption.

 

    	 	-11-	 

     

    

 

Article
III

 

SCHOOL BASE BUILDING
WORK AND SCHOOL FIT-OUT WORK; CONSTRUCTION DRAWINGS AND ESTIMATES

 

Section 3.01   School Base Building
Work and School Fit-Out Work.

 

(a)          School
Base Building Work.

 

(i)       Intentionally
omitted.

 

(ii)       School
Cost Allocation Methods and Preliminary Hard Cost Estimate. Annexed hereto as Exhibit G is the Description of Hard Cost
Allocation for Public School (the “Base Building Hard Cost Allocation”), which Base Building Hard Cost Allocation
sets forth the parties’ agreed methods for allocating, from time to time, applicable hard costs of constructing the core
and shell of the Building to the portions of the core and shell of the Building required for construction of the School Unit. Also
annexed hereto as Exhibit G is the Land Value and Soft Cost Allocation for Public School (the “Land Value and Soft
Cost Allocation”), which Land Value and Soft Cost Allocation, among other things, sets forth the parties’ agreed
methods for allocating, from time to time, land value and the parties’ agreed methods for allocating soft costs of constructing
the core and shell of the Building to the portions of the core and shell of the Building required for construction of the School
Unit.

 

(iii)       Intentionally
omitted.

 

(iv)       School
Base Building Design and Budget Development Process. As further provided below in Section 3.03, Developer has caused the Base
Building Architect (as defined below) to prepare 100% complete school base building construction drawings. Developer has caused
an overall estimate to be prepared (including by obtaining bids for major trades) based on 100% complete construction plans and
specifications for the Building.

 

(v)       “School
Base Building Work” Defined. For purposes of the design development, estimating, bidding and value engineering process
set forth more fully in Section 3.03, “School Base Building Work” means the portions of the core and shell of
the Building required for construction by or on behalf of Developer of the School Unit in accordance with this Agreement and as
may be modified as expressly provided in this Agreement. Upon completion of the design development, estimating, bidding and value
engineering process set forth more fully in Section 3.03, “School Base Building Work” means the work shown and
described on the final 100% School Base Building CD’s (as defined in Section 3.03) and as may be modified as expressly provided
in this Agreement.

 

(vi)       Size
of School Unit. Notwithstanding anything to the contrary in this Section 3.01 or elsewhere in this Agreement, the parties acknowledge
and agree that no changes from the School Program (hereinafter defined) set forth on Exhibit I to the size of the School Unit may
(1) adversely affect the functionality or, except to a de minimis extent, operations of the School Program or (2) result in the
School Unit not being of sufficient size to accommodate the School Program, in each case without the prior written consent of SCA.

 

(b)         School
Fit-Out Work and School F&E Work. (i) SCA shall cause the School Fit-Out Work to be completed in accordance with (A) the
spaces designated as “SCA Spaces” on Exhibit I annexed hereto (the “School Program”), (B)
School Fit-Out Construction Drawings (as defined below), and (C) all applicable Legal Requirements. Notwithstanding anything to
the contrary contained in this Agreement, SCA (and not Developer) shall be solely responsible for obtaining a temporary certificate
of occupancy for the School Unit, it being understood in furtherance of the foregoing and for purposes of clarification that the
issuance of a temporary certificate of occupancy for the School Unit shall not be required for Substantial Completion to have occurred
and shall not be a condition to the obligation of SCA to pay Developer the Construction Supervision Fee (including without limitation
any Holdback Amount) or to close on the acquisition of the School Unit. For purposes of this Agreement, “School Fit-Out
Work” means the work necessary to fit out the School Unit for operation of the Public School in accordance with the provisions
of this Agreement. School Fit-Out Work and any other work SCA may require including, without limitation, delivering its furniture,
fixtures and equipment (“F&E”) to the School Unit and installing its F&E (collectively, the “School
F&E Work”) shall be the sole responsibility of SCA. All School Fit-Out Work shall be performed, and all F&E shall
be purchased, delivered and installed, at the sole expense of SCA. This paragraph shall survive the Closing.

 

    	 	-12-	 

     

    

 

(ii)       Subject
to the remainder of this paragraph, Developer and SCA shall reasonably cooperate so that the School Fit-Out Work and any work the
Developer may be performing at the Building do not interfere with each other, and in order to minimize restrictions and delays
with respect to such work. If SCA shall elect to use union labor in respect of any such work at such time as Developer shall have
engaged non-union labor, the parties shall reasonably cooperate with each other to establish a “second gate” for SCA’s
union labor. In this regard, prior to the commencement of the School Fit-Out Work, the parties shall confer with each other with
respect to relevant labor considerations affecting, and necessary for the concurrent and orderly performance of, the Project and
the School Fit-Out Work. Nothing in this Agreement, however, shall require Developer to change its desired labor practices and
policies in respect of the Project. Notwithstanding anything to the contrary contained in this Agreement, in no event shall SCA
perform or cause to be performed any work in or to the Property until the completion of the SCA Pre- and Post-Turnover Work and
Punch List Items (as “completion” shall be determined by Developer in its reasonable discretion). Subsequent to the
completion of the SCA Pre- and Post-Turnover Work and the Punch List Items, any work by or on behalf of SCA in or to, or requiring
access through, a portion of the Property outside of the School Unit (including, without limitation, in connection with School
Limited Common Elements (as defined in the Declaration) and School Unit facilities located in the Cellar (as used in the Declaration)
or on the 9th Floor (as used in the Declaration), or the School Unit’s dedicated chiller located on the main roof) in which
Developer’s construction work is ongoing shall be permitted, provided, in each instance such work: (i) shall not interfere
with Developer’s work; (ii) shall be scheduled in advance and coordinated with Developer and Developer’s contractors;
(iii) may be subject to periodic and temporary delays or postponements as may be necessary in connection with Developer’s
work; and (iv) may be subject to such additional restrictions with respect to access and manner of work permitted as are necessary
(in the case of (iii) and (iv) above, as shall be determined by Developer in Developer’s sole discretion). In addition, during
Developer’s construction work, Developer shall have the right to shut off the shared sprinkler system for temporary periods
and from time to time; provided, however, Developer shall not shut off the shared sprinkler system while school is in session without
the implementation of a fire watch or other protections in compliance with applicable laws. This Section 3.01(b)(ii) shall survive
Closing.

 

(c)          Construction
Supervision Fee; Not-to Exceed Amounts; Value Engineering.

 

(i)       In
connection with Developer’s performance of the School Base Building Work, SCA shall pay a fee to the Developer (the “Construction
Supervision Fee”) in the amount and in periodic installments in accordance with the guidelines set forth on Exhibit
H annexed hereto.

 

    	 	-13-	 

     

    

 

(ii)       Intentionally
omitted.

 

(iii)       Developer,
with the reasonable cooperation of SCA, shall perform or cause to be performed such value engineering of the hard costs of School
Base Building Work as may be necessary to prevent the Public School Project Costs from exceeding the Public School Project Costs
Not-to-Exceed Amount.

 

(d)          Sales
and Use Tax Exemption for School Base Building Work. SCA has advised Developer that because SCA qualifies as an exempt organization
under Section 1116(a) of the New York Tax Law, SCA may be exempt from New York State and New York City sales and use taxes on tangible
personal property and services used to improve real property (the “Sales and Use Taxes”). SCA and Developer
agree to afford all reasonable assistance and cooperation to each other in their efforts to secure a confirmation, satisfactory
to Developer and SCA, that SCA’s exemption from Sales and Use Taxes will be available for the School Base Building Work.
SCA and Developer further agree, promptly, diligently and with continuity following execution and delivery of this Agreement by
the parties, to use all reasonable efforts to secure such confirmation as soon as reasonably practicable. SCA acknowledges and
agrees that in the event SCA is not exempt from Sales and Use Taxes, SCA will be responsible for paying the same to the extent
allocable to the School Base Building Work.

 

Section 3.02    School Base Building
Design Consultants. The architect for the School Base Building Work shall be FXFowle Architects
LLP or such other architect as shall have been selected by Developer in Developer’s sole discretion (“School Base
Building Architect”). The engineer, code consultant and other design consultants for the School Base Building Work shall
be the engineer, code consultant and other design consultants for the School Base Building Work as shall have been selected by
Developer in Developer’s sole discretion (together with the School Base Building Architect, collectively, the “School
Base Building Design Consultants”).

 

Section 3.03    School Base Building
Construction Drawings.

 

(a)         School
Fit-Out Construction Drawings. The current version of the School Fit-Out construction drawings (the “School Fit-Out
Construction Drawings”) are attached hereto as Exhibit M, it being understood that SCA shall be responsible, at SCA’s
sole cost and expense, for promptly providing to Developer and the School Base Building Architect any update to the School Fit-Out
Construction Drawings.

 

(b)         Code
Compliance. Notwithstanding anything to the contrary contained in this Agreement, (I) SCA shall be liable (including, without
limitation, for the cost of Change Orders) for (i) any non-compliance (“SCA Design Non-Compliance”) of the 100%
School Base Building CD’s with applicable codes or other Legal Requirements for the operation of a school, to the extent
that such non-compliance arises from any drawings, design or specifications provided to Developer or School Base Building Architect
by SCA or its architect or other consultants (“SCA Design”), and (ii) any changes to applicable codes or other
Legal Requirements solely to the extent such changes pertain to requirements for the operation of a school, which changes are first
imposed by the applicable governmental authority after April 30, 2017 (“Post-April Non-Compliance”), and (II)
solely vis-à-vis SCA, Developer shall be liable (including, without limitation, for the cost of Change Orders) for (a) errors
on the 100% School Base Building CD’s that result from School Base Building Architect incorrectly incorporating the SCA Design
into the 100% School Base Building CD’s, and (b) any non-compliance of the 100% School Base Building CD’s with applicable
codes or other Legal Requirements for the operation of a school in effect as of April 30, 2017, except to the extent that such
non-compliance arises from any SCA Design. The foregoing shall in no event limit Developer’s rights and remedies against
the School Base Building Architect or any engineer or contractor in connection with subclause (II) above.

 

    	 	-14-	 

     

    

 

(c)          Intentionally
omitted.

 

(d)          Intentionally
omitted.

 

(e)          Intentionally
omitted.

 

(f)           Intentionally
omitted.

 

(g)          100%
School Base Building CD’s.

 

(i)       Subject
to Section 3.03(b) above, the School Base Building Architect has developed the School Base Building Work construction documents
(inclusive of an addendum) to be (A) complete and coordinated for architectural and engineering purposes, (B) in conformance with
all New York City codes and other applicable Legal Requirements, and (C) a complete set of biddable construction plans and specifications
(inclusive of such addendum) (as they may be modified as expressly provided in this Agreement, hereinafter, the “100%
School Base Building CD’s”). The 100% School Base Building CD’s are attached hereto as Exhibit Y.

 

(ii)       Developer
has furnished SCA with copies of the 100% School Base Building CD’s, together with any bulletins, sketches, letters or narrative
summaries issued by the School Base Building Architect in connection therewith.

 

(h)          Codes
and Other Legal Requirements. The 100% School Base Building CD’s shall be filed by Developer with the Buildings Department
and all other governmental agencies having jurisdiction (or Developer may incorporate the 100% School Base Building CD’s
into a CD set for the entire Building for such filing purposes if acceptable to the Buildings Department). Any changes to the 100%
School Base Building CD’s required by any governmental agency shall be disclosed by Developer to SCA and shall promptly be
incorporated into the 100% School Base Building CD’s by the School Base Building Architect.

 

(i)           School
Base Building Work Revisions.

 

(i)       Notwithstanding
anything to the contrary in this Section 3.03, Developer may, from time to time, make revisions to the 100% School Base Building
CD’s (any such revisions are hereinafter referred to as “School Base Building Work Revisions”). Unless
such School Base Building Work Revisions are necessary in order to conform the 100% School Base Building CD’s to codes or
other Legal Requirements, they shall be subject to the approval of SCA, provided, that SCA’s approval shall not be withheld
unless such School Base Building Work Revisions would be inconsistent with Section 3.01(a)(vi) hereof regarding the size of the
School Unit or would otherwise adversely affect the functionality or, except to a de minimis extent, operations of the School Program
and/or cause the hard costs of the School Fit-Out Work to be increased (unless Developer agrees to pay such excess).

 

    	 	-15-	 

     

    

 

(ii)       SCA
shall approve or disapprove any School Base Building Work Revisions within five (5) Business Days after receipt thereof. If SCA
disapproves such School Base Building Work Revisions, such disapproval shall state specifically in writing (which may include mark-ups
of the School Base Building Work Revisions) the grounds for disapproval and the modifications requested. If SCA shall not have
approved or disapproved the School Base Building Work Revisions within five (5) Business Days after receipt thereof, the School
Base Building Work Revisions shall be deemed approved.

 

(iii)       If
SCA shall have timely disapproved the School Base Building Work Revisions, then within three (3) Business Days after Developer’s
written request, Developer, SCA and the School Base Building Architect shall meet at Developer’s office and use diligent
efforts, with continuity, to resolve SCA’s objections. If SCA’s objections shall not have been resolved within three
(3) Business Days after Developer’s request for such a meeting, then either party may submit the validity of SCA’s
objections to expedited arbitration pursuant to Article VII. SCA may withhold payment of any amounts in respect of the costs of
implementing School Base Building Work Revisions that are disputed as expressly permitted pursuant to subsection (i) above until
SCA’s objections have been resolved in accordance with this Agreement, but all amounts that are not so disputed shall be
timely paid by SCA.

 

(iv)       Copies
of any modifications to the School Base Building Work Revisions prepared in response to SCA’s objections or prepared in response
to the decision of an Arbitrator resolving such objections, shall be furnished to SCA promptly after completion thereof.

 

(j)           Partial
School Base Building CD’s. In order to expedite completion of the School Base Building Work, if in the reasonable judgment
of the School Base Building Architect the same are complete and integrated enough for SCA to review and comment on, Developer may
request SCA to review mechanical, electrical and plumbing plans and specifications, pre-purchase specifications and long lead items.
If Developer so requests, it shall submit to SCA specific working drawings for the aspect of the School Base Building Work in question
together with, if applicable, a detailed description of the equipment or materials to be purchased (model numbers, names of manufacturers,
etc.). Any such partial School Base Building CD’s shall be subject to the approval of SCA, provided, that SCA’s approval
shall not be withheld (i) unless such partial School Base Building CD’s would be inconsistent with Section 3.01(a)(vi) hereof
regarding the size of the School Unit or would otherwise adversely affect the functionality or, except to a de minimis extent,
operations of the School Program or (ii) unless such partial School Base building CD’s would cause the hard costs of the
School Fit-Out Work to be increased (unless Developer agrees to pay such excess). SCA shall approve or disapprove Developer’s
request within a reasonable period of time, not to exceed five (5) Business Days after SCA’s receipt thereof, such approval
not to be unreasonably withheld. If SCA disapproves any such request, SCA shall thereafter approve or disapprove any revised request
within three (3) Business Days after SCA’s receipt of such revised request, such approval not to be unreasonably withheld.
Any disapproval shall be in writing (which may include mark-ups of the partial plans and specifications submitted for approval)
and shall specify the grounds for disapproval and the modifications requested. If SCA fails so to approve or disapprove such partial
plans and specifications within such five (5) Business Day or three (3) Business Day period, as the case may be, such partial plans
and specifications shall be deemed approved. If any SCA objections to a Developer’s revised request are not resolved within
five (5) Business Days after Developer’s receipt thereof, either party may submit SCA’s then remaining objections to
expedited arbitration pursuant to Article VII.

 

    	 	-16-	 

     

    

 

(k)         School
Exterior Signage. SCA acknowledges Developer’s desire that exterior signage for the Public School be harmonious with
Developer’s overall signage criteria for the Building. Accordingly, SCA agrees to afford reasonable cooperation to the School
Base Building Architect so that the School Base Building Architect may develop an exterior signage plan for the Public School that
meets SCA’s functional requirements and is also integrated with the overall exterior signage plan for the Building. Promptly
upon Developer’s request, SCA shall (i) furnish Developer with any required SCA specifications for exterior signage for the
Public School, (ii) review and give all reasonable consideration to proposed exterior signage plans for the Public School (and
revisions thereto) prepared by the School Base Building Architect, and (iii) meet with Developer and the School Base Building Architect
to discuss SCA comments on exterior signage plans for the Public School (or revisions thereto) prepared by the School Base Building
Architect. All costs and expenses in connection with the School Exterior Signage shall be borne by SCA (and shall not be considered
Public School Project Costs), and all work in connection with the same shall not be considered School Base Building Work. The Condominium
Documents set forth the currently agreed upon signage requirements. This paragraph shall survive Closing.

 

Article
IV

 

AWARD OF CONTRACTS;
COMMENCEMENT AND PERFORMANCE OF SCHOOL BASE BUILDING WORK AND SCHOOL FIT-OUT WORK

 

Section 4.01   Construction Manager
for School Base Building Work; Award of Contracts for School Base Building Work.

 

(a)       The
construction manager for the School Base Building Work shall be (1) Construction Manager, (2) an Affiliate of Developer engaged
on arms-length terms, or (3) such other third party construction manager as Developer shall select in its sole discretion.

 

(b)       Award
of Contracts for School Base Building Work. Developer shall promptly commence the award of trade contracts for performance
of the School Base Building Work, which trade contracts shall be based substantially on the 100% School Base Building CD’s.
In the case of major trades, such contracts shall be entered into with the lowest responsive and responsible bidders then available
(as identified by Developer). Developer’s contract with the Construction Manager for the School Base Building Work shall
be a guaranteed maximum price contract (the “GMP Contract”). For the avoidance of doubt, Developer shall have
the right to enter into trade contracts directly, or have the Construction Manager do so.

 

    	 	-17-	 

     

    

 

Section 4.02   General Contractor for
School Fit-Out Work.

 

(a)          General
Contractor for School Fit-Out Work.

 

(i)       The
general contractor for the School Fit-Out Work shall be selected by SCA.

 

Section 4.03    Commencement and Performance
of School Base Building Work; SCA Termination Option for Failure to Commence Construction; Developer Termination Option for Failure
to Obtain Construction Loan.

 

(a)         As
soon as reasonably practicable after (i) execution and delivery of this Agreement by the parties, (ii) funding of the first draw
under Developer’s construction loan, and (iii) Developer or its Construction Manager having entered into trade contracts
for the School Base Building Work, Developer shall commence performance of the School Base Building Work and shall thereafter prosecute
the same diligently and with continuity to completion, subject to Force Majeure and to SCA Delays (as hereinafter defined). Notwithstanding
anything to the contrary in the preceding sentence, SCA acknowledges and agrees that Developer may elect, in Developer’s
sole discretion, to commence the work of early trades such as excavation and foundation prior to the closing of Developer’s
construction loan. SCA shall cooperate with Developer as reasonably requested in connection with the performance of the School
Base Building Work including, without limitation, in order to obtain a building permit.

 

(b)         If
Developer has not Commenced Construction of the School Base Building Work within one hundred eighty (180) days after the Effective
Date (the “Construction Commencement Deadline”), which Construction Commencement Deadline shall be subject to
extension for Force Majeure and SCA Delays, then commencing on the day after the expiration of the Construction Commencement Deadline
and continuing thereafter (but prior to any subsequent Commencement of Construction of the School Base Building Work), SCA shall
have the right, as SCA’s sole and exclusive remedy, to terminate this Agreement on ninety (90) days prior notice. If Developer
shall not have Commenced Construction of the School Base Building Work prior to the expiration of such ninety (90) day period,
then (i) this Agreement shall terminate at the close of business on the ninetieth (90th) day, (ii) within thirty (30) days after
the termination date, Developer shall pay to SCA, without interest, the aggregate amount of all Requisitions (including the Catch-Up
Requisition) previously paid to Developer by SCA, and (iii) neither party shall have any further obligation to the other. “Commence[ment
of] Construction of the School Base Building Work” means commencement of excavation using heavy equipment.

 

(c)         Developer
shall have the right to terminate this Agreement (i) if at any time prior to the Construction Commencement Deadline, Developer
notifies SCA that Developer has been unable to obtain a construction loan commitment or fully-executed construction loan term sheet
for the Project on terms and conditions acceptable to Developer in Developer’s sole discretion, and/or (ii) in the event
that Developer has obtained a construction loan commitment or fully-executed construction loan term sheet for the Project, if at
any time prior to the date that is twenty-four (24) months after the Effective Date (which date is subject to extension for Force
Majeure and SCA Delays) Developer notifies SCA that Developer has determined, in Developer’s sole discretion, that it is
not feasible for Developer to close on a construction loan for the Project. Any such notice shall specify a termination date that
is not less than thirty (30) days nor more than ninety (90) days after the date of the notice. Upon the termination date (as specified
in the notice), (x) Developer shall pay to SCA, without interest, the aggregate amount of all Requisitions and payments (including
the Catch-Up Requisition) previously paid to Developer by SCA, (y) this Agreement shall terminate, and (z) neither party shall
have any further obligation to the other.

 

    	 	-18-	 

     

    

 

Section 4.04   Intentionally omitted.

 

Section 4.05   Construction Schedule.
Annexed hereto as Exhibit N is a schedule for performance of the School Base Building Work (as updated from time to time,
the “Construction Schedule”). Developer and SCA acknowledge and agree that except as specifically set forth
in Section 5.05, the Construction Schedule is for informational purposes only, is not binding on either party and shall not be
deemed to modify the rights of either party under this Agreement. Developer shall cause the Construction Schedule to be updated
from time to time and shall furnish SCA with all updates of the Construction Schedule promptly after the same are received by Developer.

 

Section 4.06   Methods and Materials.

 

(a)         Methods
and Materials. Developer shall cause the performance of the School Base Building Work in such manner as Developer shall determine
in its sole discretion, consistent, however, with the 100% School Base Building CD’s and the provisions of this Agreement.

 

Section 4.07   SCA’s Project Representative;
Coordination Meetings.

 

(a)         SCA’s
Project Representative.

 

(i)       SCA
shall designate a representative of SCA designated by notice pursuant to Article XIV of this Agreement, as “SCA’s
Project Representative.” SCA’s Project Representative shall administer this Agreement on behalf of SCA, shall attend
so-called “pencil requisitions” on behalf of SCA, and shall have the authority (or shall diligently and promptly obtain
the required authorization, as needed) to bind SCA with respect to approval of Requisitions, authorization of Change Orders, Substantial
Completion, completion of Punch List Items and all other matters requiring SCA consent, approval or authorization as provided in
this Agreement. SCA hereby designates Richard Mazur as its initial SCA’s Project Representative.

 

(ii)       Without
limiting any rights or obligations of SCA or Developer contained in Section 4.07(b), Section 5.02(b), Section 6.02 or any other
provisions of this Agreement, SCA’s Project Representative shall have the right, from time to time without notice, to observe
Developer’s performance of the School Base Building Work for the purpose of ensuring that the School Base Building Work is
undertaken in accordance with this Agreement, but the parties will reasonably coordinate in order to avoid interference with Developer’s
work including, without limitation, the School Base Building Work.

 

    	 	-19-	 

     

    

 

(b)         Coordination
Meetings. Commencing the date hereof and continuing until commencement of performance of the School Base Building Work, SCA
shall cause SCA’s Project Representative to meet with Developer and Developer’s Construction Manager(s) during business
hours once per week in order to review the progress of design, estimating, bidding and contracting of the School Base Building
Work. Commencing with commencement of performance of the School Base Building Work and continuing until the School Base Building
Work has been Substantially Completed, SCA shall cause SCA’s Project Representative to meet with Developer and Developer’s
Construction Manager(s) during business hours once each week in order to review the progress of performance of the School Base
Building Work. Any such meetings may be held at the Building if so requested by Developer. Developer shall cause minutes to be
prepared for all such meetings and shall provide copies of the same to SCA promptly after receipt thereof by Developer. If SCA’s
Project Representative is unable to attend or fails to attend a coordination meeting, Developer shall notify SCA in writing of
such absence (including by referencing the same in the minutes) and shall notify SCA in writing (including by referencing the same
in the minutes) of any issues that Developer was unable to resolve as a consequence of such absence.

 

(c)         Project
Meetings. SCA may attend Developer’s project meetings with its Construction Manager and contractors if and to the extent
such meetings address School Base Building Work (or work on the core and shell of the Building other than the School Base Building
Work) that would affect the School Fit-Out Work. Developer shall endeavor to give SCA reasonable prior notice of such project meetings,
which notice may be oral, by telephone and/or by e-mail.

 

Article
V

 

PUBLIC SCHOOL PROJECT
COSTS; REQUISITIONS AND PAYMENT OF REQUISITIONS; SAVINGS; CHANGE ORDERS AND DELAYS

 

Section 5.01    Public School Project
Costs; Responsibility for Public School Project Costs; SCA Obligation to Obtain and Deliver CP to Developer.

 

(a)         Components
of Public School Project Costs. “Public School Project Costs” means all Eligible Costs and expenses incurred
by Developer in connection with development of the Public School, and, except as expressly provided in Section 5.04, is inclusive
of all costs and expenses incurred by Developer in connection with any Change Orders. The Public School Project Costs consist of
the following:

 

(i)       SCA’s
payment in respect of the Land value (determined in accordance with Exhibit G), as referenced on the Breakdown of Public
School Project Costs by Category annexed hereto as Exhibit O (the “Land Value Payment”), which SCA shall
pay to the Developer in periodic installments in accordance with the guidelines set forth on Exhibit H annexed hereto;

 

(ii)       Interest
on SCA’s allocable share of Pre-Development Costs, as referenced on Exhibit G;

 

(iii)      All
soft costs incurred for the School Base Building Work, as the categories of such costs are more particularly described in Exhibit
O and as such costs have been allocated to the School Base Building Work in accordance with Exhibit G (the “School
Base Building Soft Costs”); and

 

    	 	-20-	 

     

    

 

(iv)       All
hard costs of the School Base Building Work, and all accessory costs, as the categories of such costs are more particularly described
in Exhibit O and as such costs have been allocated to the School Base Building Work in accordance with Exhibit G
(the “School Base Building Hard Costs”).

 

(b)          Responsibility
for Public School Project Costs.

 

(i)       SCA
shall be responsible for all Public School Project Costs up to the Public School Project Costs Not-to-Exceed Amount and Developer
shall be responsible for all Public School Project Costs in excess of the Public School Project Costs Not-to-Exceed Amount.

 

(ii)       Notwithstanding
anything to the contrary in Section 5.01(b)(i), SCA shall be responsible for the costs of all Change Orders in respect of Public
School Project Costs (a) initiated by SCA, (b) consented to by SCA, and/or (c) necessitated by the acts or omissions of SCA or
its design professionals.

 

(iii)       Developer
shall be responsible for the costs of certain Change Orders as specifically provided in Section 5.04.

 

(c)          SCA
Obligation to Obtain and Deliver CP to Developer.

 

(i)       Commencing
on the Effective Date, and continuing until the date when SCA has delivered to Developer copies of one or more CPs for at least,
in the aggregate, the Purchase Price (not including the Land Value Payment), and an omnibus CP (the “Omnibus CP”)
that covers (but may not specifically reference) an allocation for the Land Value Payment together, in the case of the Omnibus
CP, with a letter from SCA in favor of Developer that funds in the amount of the Land Value Payment are available to SCA, pursuant
to the Omnibus CP, for payment of the Land Value Payment in accordance with the terms of this Agreement (all of the foregoing,
collectively, the “Required CPs”) to Developer or until the date when this Agreement shall have been terminated
pursuant to Section 5.01(c)(ii), SCA shall use diligent good faith efforts, with continuity, to obtain the Required CPs. SCA shall
deliver such CPs to Developer promptly upon SCA’s receipt of same from the Director of Management and Budget.

 

(ii)       If
SCA has not delivered copies of the Required CPs to Developer on or before the date that is ninety (90) days after the Effective
Date, then commencing on the day after the expiration of such ninety (90) day period and continuing thereafter (but prior to any
subsequent delivery by SCA to the Developer of copies of the Required CPs), Developer shall have the right to terminate this Agreement
upon fifteen (15) days’ prior notice. If SCA shall not have delivered copies of the Required CPs to Developer prior to the
expiration of such fifteen (15) day period, then this Agreement shall terminate upon the close of business on such fifteenth (15th)
day.

 

Section 5.02   Requisitions and Payment
of Public School Project Costs.

 

(a)           Initial
“Catch-Up” Requisition and Payment.

 

(i)       SCA
acknowledges that prior to the execution and delivery of this Agreement, Developer submitted a “catch-up” requisition
to SCA for a portion of the Land Value Payment, certain Pre-Development Costs, interest on such Pre-Development Costs and certain
other Public School Project Costs incurred through October 31, 2017, in the aggregate amount of Thirteen Million Six Hundred Twenty
Six Thousand Five Hundred and No Dollars ($13,626,500) (the “Catch-Up Requisition”). SCA further acknowledges
that the Catch-Up Requisition has been approved by SCA’s Project Representative.

 

    	 	-21-	 

     

    

 

(ii)       SCA
shall pay Developer the amount of the Catch-Up Requisition within fifteen (15) Business Days after the date hereof (the “Catch-Up
Requisition Payment Due Date”). SCA acknowledges that the Catch-Up Requisition will not be subject to Retainage.

 

(b)          Costs
Incurred Prior to First Draw Under Developer’s Construction Loan.

 

(i)         Requisition
and Back-Up. Commencing on the Effective Date and continuing until the funding of the first draw under Developer’s construction
loan, on or about the seventh (7th) day of each calendar month (unless SCA’s Project Representative agrees to accept the
same more frequently), Developer may submit to SCA’s Project Representative a requisition substantially in the form annexed
hereto as Exhibit P (hereinafter, a “Requisition”) for Public School Project Costs consisting of Pre-Development
Costs, interest on Pre-Development Costs, and/or School Base Building Soft Costs. Each such Requisition may include such Public
School Project Costs (A) incurred during the previous calendar month, or (B) incurred earlier, but not previously included in a
Requisition, or (C) previously included in a Requisition, but not previously approved by SCA’s Project Representative, and
shall be accompanied by the following:

 

		(A)	A certification by an officer of Developer setting forth (1) the amount of the requested payment, (2) an itemization of the
Public School Project Costs for which payment is being sought, (3) if and to the extent that the prior Requisition(s) covering
such costs have been paid by SCA, a statement that all Public School Project Costs for work completed prior to and during the period
covered by the immediately prior Requisition have been paid or otherwise satisfied by Developer, and (4) a list of contractors
or vendors whose work is covered by the Requisition, indicating the amount requested on behalf of each such contractor or vendor
and accompanied by evidence reasonably satisfactory to SCA’s Project Representative that the Public School Project Costs
being requisitioned have not previously been reimbursed under this Agreement; and

 

		(B)	True copies of (1) all contracts on account of which payment is being sought (or for contracts that have previously been delivered,
a statement to that effect and copies of any amendments thereof), (2) supporting bills, invoices or other customary documentation
reflecting the requisitioned Public School Project Costs; (3) a certificate of title continuation for the Property from the Title
Insurer indicating no change in the state of title or liens not contemplated by the development of the Public School pursuant to
this Agreement or previously approved by SCA’s Project Representative, other than Permitted Encumbrances, and (4) to
the extent that the same would have been required under Developer’s construction loan documents if Developer’s construction
loan for the Project had closed, lien waivers from contractors payment to which is covered by the Requisition in question.

 

    	 	-22-	 

     

    

 

In addition, the representations of Developer set forth in Section
12.01 shall be true, correct and complete in all material respects as of the date of submission of the Requisition and as of the
date of SCA disbursement pursuant thereto.

 

(ii)       Approval
of Requisition. Within five (5) Business Days after receipt of each Requisition, SCA’s Project Representative shall either
approve or disapprove the Public School Project Costs included in such Requisition, provided, that all Public School Project Costs
included in such Requisition shall be deemed approved unless, and except to the extent that, (A) the allocation of any amounts
in respect of the Pre-Development Costs included in such Requisition is inconsistent with the allocation methodology set forth
in Exhibit G, (B) the allocation of any School Base Building Soft Costs included in such Requisition is inconsistent with
Exhibit G, or (C) the allocation of the Land Value Payment included in such Requisition is inconsistent with Exhibit
G. If SCA’s Project Representative disapproves any Public School Project Costs included in such Requisition, the grounds
for disapproval shall be stated specifically in writing. If SCA’s Project Representative fails to approve or disapprove the
Public School Project Costs included in such Requisition within five (5) Business Days after receipt of such Requisition, all Public
School Project Costs included in such Requisition shall be deemed approved.

 

(iii)       Disapproved
Public School Project Costs. If SCA’s Project Representative has timely disapproved any Public School Project Costs included
in a Requisition in accordance with Section 5.02(b)(ii), Developer, at Developer’s election, may either (A) resubmit the
disapproved Public School Project Costs in one or more future Requisitions for approval by SCA’s Project Representative,
or (B) submit the disapproved Public School Project Costs to expedited arbitration pursuant to Article VII. In either case, and
notwithstanding any such disapproval, SCA shall timely pay all Public School Project Costs covered by the applicable Requisition
in accordance with and subject to Section 5.02(b)(iv).

 

(iv)       Payment
of Requisition. On or before the Requisition Payment Due Date, SCA shall pay to Developer all amounts in respect of the Pre-Development
Costs, interest on Pre-Development costs and School Base Building Soft Costs included in such Requisition or such amount as determined
by the Arbitrator (or Developer’s construction lender, as applicable).

 

(c)         Monthly
Requisitions Commencing With First Draw Under Developer’s Construction Loan; “True-Up” Adjustment.

 

(i)       Requisition
of Hard Costs. Commencing with the first draw under Developer’s construction loan and as the School Base Building Work
progresses (and subsequent to Closing, as set forth in Section 5.02(g) below), Developer shall be entitled to requisition School
Base Building Hard Costs (including without limitation any trade costs for the work of early trades such as excavation and foundation
that have previously been incurred by Developer, at Developer’s election, pursuant to Section 4.03), in accordance with the
following provisions of this Section 5.02(c). In addition, the initial such Requisition following the first draw under Developer’s
construction loan shall include a “true-up” adjustment, pursuant to Section 5.02(e), for Public School Project Costs
previously allocated to SCA pursuant to the Description of Hard Cost Allocation and the Land Value and Soft Cost Allocation attached
as Exhibit G.

 

    	 	-23-	 

     

    

 

(ii)       “Pencil”
Requisition Meeting and Walk-Through. Commencing with the calendar month prior to the calendar month in which Developer anticipates
that funding of the first draw under Developer’s construction loan will occur and continuing until completion of all Punch
List Items (as hereinafter defined) (and subsequent to Closing, as applicable, as set forth in Section 5.02(g) below), SCA’s
Project Representative shall attend a monthly “pencil” requisition meeting and walk-through of the School Unit, which
“pencil” requisition meeting and walk-through shall be conducted by Developer’s construction lender’s inspecting
engineer, Developer’s Construction Manager(s) and Developer. Developer presently anticipates that such “pencil”
requisition meeting and walk-through will occur on or about the 25th day of each month. At the conclusion of each “pencil”
requisition meeting and walk-through: All School Base Building Hard Costs and School Base Building Soft Costs covered by the “pencil”
requisition shall be deemed approved, unless and except to the extent any such costs have been specifically disapproved by Developer’s
construction lender’s inspecting engineer.

 

(iii)       Requisition
and Back-Up. Commencing with the calendar month in which Developer anticipates that funding of the first draw under Developer’s
construction loan will occur and continuing until completion of all Punch List Items (and subsequent to Closing, as set forth in
Section 5.02(g) below), on or about the seventh (7th) day of each calendar month (unless SCA’s Project Representative agrees
to accept the same more frequently), Developer may submit to SCA’s Project Representative a Requisition for any and all Public
School Project Costs as defined in Section 5.01(a). Each such Requisition may include Public School Project Costs (A) incurred
during the previous calendar month, or (B) incurred earlier, but not previously included in a Requisition, or (C) previously included
in a Requisition, but not previously approved by Developer’s construction lender (or its inspecting engineer) or SCA’s
Project Representative, and shall be accompanied by the following:

 

		(A)	A certification by an officer of Developer setting forth (1) the amount of the requested payment, (2) an itemization of the
Public School Project Costs for which payment is being sought, (3) if and to the extent that the prior Requisition(s) covering
such costs have been paid by SCA, a statement that all Public School Project Costs for work completed prior to and during the period
covered by the immediately prior Requisition have been paid or otherwise satisfied by Developer, and (4) a list of contractors
or vendors whose work is covered by the Requisition, indicating the amount requested on behalf of each such contractor or vendor
and accompanied by evidence reasonably satisfactory to SCA’s Project Representative that the Public School Project Costs
being requisitioned have not previously been reimbursed under this Agreement; and

 

    	 	-24-	 

     

    

 

		(B)	True copies of (1) all contracts on account of which payment is being sought (or for contracts that have previously been delivered,
a statement to that effect and copies of any amendments thereof), (2) as applicable, requisitions or applications for payment from
trade contractors to Developer’s Construction Manager(s), and/or requisitions or applications for payment from Developer’s
Construction Manager(s) to Developer, and/or other supporting bills, invoices or other documentation reflecting the requisitioned
Public School Project Costs, (3) as applicable, a true copy of an “Application and Certificate for Payment” substantially
in the form of AIA Forms G702 and G703, as such forms may be amended from time to time, completed and executed by Developer’s
Construction Manager(s) and the School Base Building Architect with respect to all School Base Building Hard Costs covered by the
Requisition, (4) as applicable, copies of any change orders, (5)  a certificate of title continuation for the Property from
the Title Insurer indicating no change in the state of title or liens not contemplated by the development of the Public School
pursuant to this Agreement or previously approved by SCA’s Project Representative (except, with respect to Requisitions made
subsequent to Closing, for changes in the state of title not caused by Developer or its contractors), and (6) to the extent
required under Developer’s construction loan documents for the Project, lien waivers from contractors payment to which is
being sought pursuant to the Requisition in question.

 

In addition, the representations of Developer set forth in Section
12.01 shall be true, correct and complete in all material respects as of the date of submission of the Requisition and as of the
date of SCA disbursement pursuant thereto.

 

(iv)       Approval
of Requisition. Within five (5) Business Days after receipt of each Requisition, SCA’s Project Representative shall either
approve or disapprove the Public School Project Costs included in such Requisition, provided, that all Public School Project Costs
included in such Requisition shall be deemed approved unless, and except to the extent that:

 

		(A)	The allocation of any amounts in respect of the Pre-Development Costs included in such Requisition is inconsistent with the
allocation methodology set forth in Exhibit G; or

 

		(B)	Any School Base Building Soft Costs or School Base Building Hard Costs have previously been disapproved by Developer’s
construction lender’s inspecting engineer at the “pencil” requisition meeting and walk-through for such Requisition.

 

If SCA’s Project Representative disapproves any Public
School Project Costs included in such Requisition (other than Public School Project Costs previously disapproved at the “pencil”
requisition and walk-through), the grounds for disapproval shall be stated specifically in writing. If SCA’s Project Representative
fails to approve or disapprove the Public School Project Costs included in such Requisition (other than Public School Project Costs
previously disapproved at the “pencil” requisition and walk-through) within five (5) Business Days after receipt of
such Requisition, all such Public School Project Costs included in such Requisition shall be deemed approved.

 

    	 	-25-	 

     

    

 

(v)       Disapproved
Public School Project Costs. If Developer’s construction lender’s inspecting engineer has disapproved any Public
School Project Costs included in a “pencil” requisition in accordance with Section 5.02(c)(ii), then Developer may
resubmit such disapproved Public School Project Costs in one or more future “pencil” requisitions or one or more Requisitions
for approval by Developer’s construction lender’s inspecting engineer. If SCA’s Project Representative has timely
disapproved any Public School Project Costs included in a “pencil” requisition or a Requisition in accordance with
Section 5.02(c)(ii) or (iv), then Developer, at Developer’s election, may either (A) resubmit such disapproved Public School
Project Costs in one or more future “pencil” requisitions and/or Requisitions for approval by SCA’s Project Representative,
or (B) submit the disputed Public School Project Costs to expedited arbitration pursuant to Article VII. In any such case, and
notwithstanding any such disapproval(s), SCA shall timely pay all Public School Project Costs covered by such Requisition (other
than disputed amounts permitted to be withheld pursuant to Article VII hereof) in accordance with and subject to Section 5.02(b)(iv),
Section 5.02(c)(vi) and Article VII hereof, as applicable.

 

(vi)       Payment
of Requisition. On or before the Requisition Payment Due Date, subject to Section 5.02(b)(iv), Section 5.02(c)(v) and Article
VII hereof, SCA shall pay Developer: (A) (1) all amounts in respect of Pre-Development Costs, interest on Pre-Development Costs,
School Base Building Soft Costs, Land Value Payment and Construction Supervision Fee included in such Requisition, plus (2) the
total of all School Base Building Hard Costs attributable to the School Base Building Work completed to the date of the Requisition,
based on percentage completion, minus (B) (1) all School Base Building Hard Costs previously paid to Developer, plus (2) the applicable
Retainage as defined in Section 5.02(d).

 

(d)         Retainage.
“Retainage” means an amount equal to the then applicable percentage of School Base Building Hard Costs, exclusive
of general conditions, construction management fees, the Construction Supervision Fee, insurance and bonds, Developer’s testing
and survey costs and permits, in accordance with the following:

 

(i)          School
Base Building Hard Costs.

 

		(A)	Initial Retainage. Commencing with the Requisition following the first draw under Developer’s construction loan,
Retainage for the School Base Building Hard Costs shall be the lesser of (1) ten percent (10%), or (2) the amount of retainage
required by Developer’s construction lender under Developer’s construction loan.

 

		(B)	Reduction of Retainage. If Developer’s construction loan permits retainage thereunder to be reduced upon Developer’s
having achieved a specified percentage of completion of the School Base Building Work (or upon Developer’s satisfaction of
other requirements for reduction of retainage), then upon Developer’s having achieved such specified percentage of completion
of the School Base Building Work (or upon Developer’s satisfaction of such other requirements), Retainage shall be deemed
reduced to the same extent for purposes of this Section 5.02.

 

    	 	-26-	 

     

    

 

		(C)	Early Release of Certain Retainage. If Developer’s construction loan permits release of retainage thereunder attributable
to contractors for early trades such as excavation and foundation, or permits retainage to be released for any other contractors
whose portion of the School Base Building Work has been completed, or if Developer’s construction lender otherwise approves
a request by Developer for release of such retainage, then upon Developer’s satisfaction of Developer’s construction
lender’s conditions for release of such Retainage, SCA shall pay Retainage for such early trades, or Retainage for such other
contractors whose portion of the School Base Building Work has been completed, to the same extent.

 

		(D)	Release of the Balance of Retainage. Release of the balance of any Retainage remaining upon Substantial Completion of
the School Base Building Work, or upon completion of Punch List Items for the School Base Building Work, shall be governed by the
terms and conditions of Developer’s construction loan. This subparagraph (D) shall survive the Closing.

 

(ii)       Intentionally
Omitted.

 

(e)         “True-Up”
Adjustment for Allocations. As part of the initial Requisition following the first draw under Developer’s construction
loan pursuant to Section 5.02(c), there shall be a “true-up” adjustment of Public School Project Costs that have been
previously paid by SCA, commencing with the Catch-Up Requisition and ending with the Requisition preceding the first draw under
Developer’s construction loan, on the basis of allocations pursuant to the Description of Hard Cost Allocation and the Land
Value and Soft Cost Allocation on Exhibit G. The “true-up” adjustment shall reflect any changes to the underlying
bases for such allocations (e.g., percentage of gross square footage, land allocation percentage) occurring between the
Catch-Up Requisition and the Requisition preceding the first draw under Developer’s construction loan. If the “true-up”
adjustment results in an amount due Developer, such amount, with interest at Developer’s cost of borrowing, shall be added
to the initial Requisition following the first draw under Developer’s construction loan. If the “true-up” adjustment
results in an amount due SCA, such amount shall be deducted from the initial Requisition following the first draw under Developer’s
construction loan.

 

    	 	-27-	 

     

    

 

(f)           Holdback
Amount.

 

(i)       Developer
acknowledges and agrees that notwithstanding anything to the contrary in this Agreement, SCA shall not be obligated to pay $1,500,000
of the Construction Supervision Fee until (A) the School Base Building Work has been Substantially Completed in accordance with
the provisions of Section 6.01, and (B) SCA has reasonably determined that no conditions then exist, arising solely from construction
(other than by SCA or its contractors) then continuing in any Unit other than the School Unit or in portions of the core and shell
of the Building other than the School Base Building Work, that would prevent children from safely and appropriately attending at
the Public School. The $1,500,000 of the Construction Supervision Fee to be held back pursuant to this Section 5.02(f) is hereinafter
referred to as the “Holdback Amount”.

 

(ii)       Together
with the initial monthly Requisition following the first draw under Developer’s construction loan pursuant to Section 5.02(c),
Developer shall submit a projected draw schedule for the then balance of the Construction Supervision Fee to be requisitioned by
Developer, which projected draw schedule for the remaining Construction Supervision Fee shall identify a portion of the Construction
Supervision Fee still to be requisitioned equal, in the aggregate, to the Holdback Amount. Notwithstanding anything to the contrary
in Section 5.02(c)(vi) concerning payment of Requisitions, SCA shall be deemed authorized to hold back the portion of the Construction
Supervision Fee so identified by Developer until SCA has held back an amount, in the aggregate, equal to the Holdback Amount, and
interest shall not be payable on the amounts so held back, until the Holdback Amount is due and payable pursuant to the provisions
of this Section 5.02(f).

 

(iii)       Commencing
on the date when the School Base Building Work has been Substantially Completed in accordance with the provisions of Section 6.01
and continuing thereafter until SCA has paid the Holdback Amount, Developer may submit a Requisition for (or including) the Holdback
Amount. Payment of the Holdback Amount shall be deemed approved unless SCA’s Project Representative reasonably determines
that conditions then exist, arising solely from construction by Developer then continuing in any Unit other than the School Unit
or in portions of the core and shell of the Building other than the School Base Building Work, that would prevent children from
being safely and appropriately enrolled at the Public School. If SCA’s Project Representative disapproves payment of the
Holdback Amount, the grounds for such disapproval (including without limitation the construction conditions being relied on by
SCA’s Project Representative) shall be stated specifically in writing. If SCA’s Project Representative fails to approve
or disapprove payment of the Holdback Amount within fifteen (15) Business Day’s after receipt of such Requisition, then payment
of the Holdback Amount shall be deemed approved.

 

(iv)       If
SCA’s Project Representative has timely disapproved payment of the Holdback Amount, then Developer, at Developer’s
election, may either (A) resubmit the Holdback Amount for payment in one or more future Requisitions for approval by SCA’s
Project Representative, or (B) submit nonpayment of the Holdback Amount to expedited arbitration pursuant to Article VII, it being
understood that SCA shall be responsible for causing the NYC Department of Education (sometimes referred to herein as “DOE”)
to participate as necessary in such arbitration and that the decision of the arbitrator shall be binding irrespective of whether
DOE participates in such arbitration. In any such case, and notwithstanding any such disapproval, SCA shall timely pay all Public
School Project Costs (if any) covered by the same Requisition in accordance with and subject to Section 5.02(b)(iv), Section 5.02(c)(vi)
and Article VII, as applicable.

 

    	 	-28-	 

     

    

 

(v)       On
or before the Requisition Payment Due Date, SCA shall pay the Holdback Amount, subject to Section 7.02 hereof. The obligation of
SCA to pay Developer the Holdback Amount shall survive Closing or termination of this Agreement; provided, however, that the Holdback
Amount shall not be payable in the event SCA terminates this Agreement pursuant to Section 9.01 hereof as a result of Developer’s
default.

 

(g)          Requisitions
After Closing of Purchase of School Unit. Notwithstanding anything to the contrary in this Article 5, in Article 10 or elsewhere
in this Agreement, Developer may submit Requisitions pursuant to this Section 5.02 after closing of the purchase of the School
Unit, and SCA shall be responsible therefor to the extent the applicable amounts are not paid by Closing. This Section 5.02(g)
shall survive Closing.

 

Section 5.03    Intentionally omitted.

 

Section 5.04    Change Orders.

 

(a)          “Change
Order” Defined. “Change Order” means any change, addition or alteration in or to (i) the School Base
Building Work as shown on the 100% School Base Building CD’s, or (ii) any drawings, plans or specifications, to the extent
that any such change, addition or alteration (as opposed to mere correction or clarification) is inconsistent with any of the plans
and specifications referenced in subsection (i) and would increase the Public School Project Costs (including without limitation
by increasing the fees or reimbursables of the School Base Building Design Consultants) or increase Developer’s costs of
designing or constructing the portions of the core and shell of the Building other than the School Base Building Work. Any SCA
request that Developer use premium labor to accelerate Substantial Completion of the School Base Building Work shall also be deemed
a Change Order.

 

(b)          Requests
for Change Orders.

 

(i)       Any
SCA request for a Change Order shall be submitted to Developer in writing. SCA requests for Change Orders shall be subject to Developer’s
approval, not to be unreasonably withheld, provided, that it shall not be deemed unreasonable for Developer to withhold its approval
for any Change Order which:

 

		(A)	Intentionally Omitted.

 

		(B)	Intentionally Omitted.

 

		(C)	Following Commencement of Construction of the School Base Building Work, would, in Developer’s judgment, cause the Public
School Project Costs to exceed the Public School Project Costs Not-to-Exceed Amount; or

 

		(D)	Intentionally Omitted.

 

    	 	-29-	 

     

    

 

		(E)	In Developer’s judgment, would adversely affect Developer’s then schedule for (1) Substantial Completion of the
School Base Building Work, or (2) substantial completion of portions of the core and shell of the Building other than the School
Base Building Work, or (3) substantial completion of any Unit other than the School Unit or work to be performed in any Unit other
than the School Unit; or

 

		(F)	In Developer’s judgment, would prevent or delay Developer from obtaining a temporary certificate of occupancy for any
Unit (other than the School Unit) or for the Building.

 

Notwithstanding anything to the contrary in Sections 5.04(b)(i)(A)
through (D), if increases in scope contemplated by any Change Order request submitted to Developer would cause the trade costs
of the School Base Building Work, or the Public School Project Costs to exceed the limitations set forth in Sections 5.04(b)(i)(A)
or (C) respectively, then if so requested by SCA, Developer shall cause the School Base Building Architect promptly, diligently
and with continuity to meet with SCA, Developer and Developer’s Construction Manager(s) to effect compensating reductions
in scope to the extent necessary to eliminate such excess. Alternately, SCA may notify Developer that it will obtain additional
Evidence of Sufficient Funds to the extent necessary to eliminate any such excess not eliminated through compensating reductions
in scope.

 

(ii)       As
soon as reasonably practicable after receipt of SCA’s request, Developer shall notify SCA whether Developer approves or disapproves
the requested Change Order. If Developer approves the requested Change Order, such approval shall be accompanied by a proposal,
based upon reasonably detailed cost estimates supported by appropriate back-up from Developer’s Construction Manager, specifying
the costs thereof, which costs shall include (A) any increases in Public School Project Costs (as the components thereof are defined
in Section 5.01(a)) that would be occasioned by the requested Change Order (including without limitation costs of delays in performance
of the School Base Building Work), (B) any costs resulting from adverse effects of the requested Change Order on Developer’s
then schedule for (1) Substantial Completion of portions of the core and shell of the Building other than the School Base Building
Work, or (2) Substantial Completion of any Unit other than the School Unit, or (3) Substantial Completion of work to be performed
in any Unit other than the School Unit, and (C) any costs resulting from delays that would be caused by the requested Change Order
in obtaining a temporary certificate of occupancy for any Unit (other than the School Unit) or for the Building. Notwithstanding
anything to the contrary in the preceding sentence, but subject to Section 3.03(b) above, in no event shall SCA be responsible
for increases in the hard costs of the School Fit-Out Work resulting from a requested Change Order to the School Fit-Out Work,
if the requested Change Order is (a) occasioned by Change Orders to the School Base Building Work initiated by Developer after
finalization of the 100% School Base Building CD’s in accordance with Section 3.03(h) (unless consented to by SCA or necessitated
by the acts or omissions of SCA or its design professionals, or (b) occasioned by construction design defects that are the responsibility
of the School Base Building Architect, or (c) occasioned by defects or material deviations in construction of the School Base Building
Work.

 

    	 	-30-	 

     

    

 

(iii)       Upon
receipt of Developer’s proposal, SCA shall have a reasonable period of time (given the costs of the Change Order as forth
in Developer’s proposal), but not to exceed ten (10) Business Days, to accept such proposal or withdraw its request for a
Change Order. If requested by SCA, Developer shall meet with SCA, the School Base Building Architect, the School Fit-Out Architect,
and Developer’s Construction Manager(s), in order to discuss alternatives to any requested Change Order or to discuss methods
that would reduce the costs of any requested Change Order. If acceptance of such proposal would cause the trade costs of the School
Base Building Work or the Public School Project Costs to exceed the limitations set forth in Sections 5.04(b)(i)(A) or (C)
respectively, then SCA’s acceptance shall be accompanied by Evidence of Sufficient Funds. Upon Developer’s receipt
of such Evidence of Sufficient Funds, the Public School Project Costs Not-to-Exceed Amount shall be deemed automatically increased
by the amount thereof.

 

(iv)       Upon
SCA’s acceptance of Developer’s proposal and upon Developer’s receipt of any required Evidence of Sufficient
Funds, (A) Developer shall perform the Change Order diligently and with continuity to completion, and (B) Developer may submit
one or more Requisitions therefor, accompanied by applicable back-up and otherwise in accordance with the provisions of Section
5.02, until SCA has fully paid the costs thereof.

 

(v)       If
SCA does not accept Developer’s proposal and withdraws its request for a Change Order, SCA shall pay Developer, within thirty
(30) days after receipt of Developer’s reasonably detailed invoices therefor, all costs of preparing Developer’s proposal
and the costs of Developer’s construction management services in connection with the requested Change Order.

 

(vi)       SCA
acknowledges and agrees that notwithstanding SCA’s request for a Change Order, Developer’s performance of the School
Base Building Work and of construction of portions of the core and shell of the Building other than the School Base Building Work
shall continue without delay or interruption notwithstanding SCA’s request for a Change Order, Developer’s preparation
of a proposal in response thereto, SCA’s consideration of Developer’s proposal, or any meetings or consultations in
connection therewith.

 

(c)          Responsibility
for Costs of Certain Developer Change Orders. Notwithstanding anything to the contrary in Section
5.01(b) or this Section 5.04, but subject to Section 3.03(b) above, Developer shall be responsible for (and shall not submit Requisitions
for) any increases in the hard costs of the School Fit-Out Work resulting from Change Orders to the School Base Building Work (1)
initiated by Developer after finalization of the 100% School Base Building CD’s in accordance with Section 3.03(h) (unless
(I) consented to by SCA or (II) necessitated by the acts or omissions of SCA or its design professionals, any SCA Design Non-Compliance
or any Post-April Non-Compliance), or (2) occasioned by construction design defects that are the responsibility of the School Base
Building Architect, or (3) occasioned by defects or material deviations in construction of the School Base Building Work; provided
that, subject to Section 3.03(b) above, in no event shall Change Orders to the School Base Building Work initiated by Developer
(unless (I) consented to by SCA or (II) necessitated by the acts or omissions of SCA or its design professionals, any SCA Design
Non-Compliance or any Post-April Non-Compliance) be inconsistent with Section 3.01(a)(vi) hereof regarding the size of the School
Unit or otherwise adversely affect the functionality or, except to a de minimis extent, operations of the School Program, unless
SCA shall consent thereto in writing.

 

    	 	-31-	 

     

    

 

(d)         Changes
Requested by SCA or Otherwise Required. Notwithstanding anything to the contrary contained
in this Agreement and without limiting SCA’s other obligations under this Agreement, if any changes to the School Base Building
Work (1) requested by SCA, or (2) required due to SCA Design Non-Compliance or Post-April Non-Compliance, result in increased costs
or expenses, such increase shall increase the Purchase Price on a dollar-for-dollar basis (with an increase in the Construction
Supervision Fee calculated as if such increased costs and expenses were originally part of the Purchase Price), and the Public
School Project Costs Not-to-Exceed Amount shall be deemed automatically increased by the amount thereof. The ability, without restriction,
of SCA to pay all such increased costs and expenses shall be evidenced to Developer’s reasonable satisfaction as a condition
to Developer’s approval of the applicable change.

 

Section 5.05    Delays.

 

(a)          SCA
Delay.

 

(i)         There
shall be an “SCA Delay” if Developer was actually delayed in achieving Substantial Completion of the School
Base Building Work or completion of any Punch List Items, or in achieving substantial completion of any portion of the core and
shell of the Building other than the School Base Building Work, or substantial completion of any Unit other than the School Unit,
or substantial completion of any work to be performed in any Unit other than the School Unit, as a result of any delays, acts or
omissions of SCA or its design professionals or other consultants that occur or are continuing after the date of this Agreement
or as a result of any SCA Design Non-Compliance or Post-April Non-Compliance, including without limitation the delays, acts or
omissions set forth in subparagraphs (A) through (J) below:

 

		(A)	delays in furnishing written approvals, objections or comments within the time periods provided by Articles 3 or 4;

 

		(B)	delays caused by Change Orders, delays caused by the failure of SCA to comply with SCA’s obligations pursuant to Section
5.04 regarding requested Change Orders, and delays caused by time needed for design, estimating, approval and permitting of requested
Change Orders;

 

		(C)	the failure of SCA’s Project Representative to respond within five (5) days after notice with respect to all issues which
could not be addressed because of the absence of SCA’s Project Representative from bi-weekly or weekly coordination meetings;

 

		(D)	the performance of work, or failure to perform work, by a person or entity employed by or on behalf of SCA;

 

		(E)	any failure by SCA timely to pay Public School Project Costs covered by Requisitions submitted pursuant to Section 5.02 and
required to be paid pursuant to this Agreement, and any failure by SCA to act diligently and in a timely manner, in accordance
with SCA’s obligations under Section 5.02, with respect to approval of Requisitions or otherwise;

 

    	 	-32-	 

     

    

 

		(F)	Intentionally omitted.

 

		(G)	any failure by SCA to comply with the obligations of SCA under Section 6.01 with respect to Substantial Completion of the School
Base Building Work;

 

		(H)	Intentionally omitted;

 

		(I)	any work or failure to perform work, or any other act or omission of or by SCA, or any violation caused by SCA, which delays
Developer in obtaining a temporary certificate of occupancy for any Unit (other than the School Unit) or the Building; and

 

		(J)	the failure of SCA to comply with its obligations with respect to the expedited arbitration procedures set forth in Article
VII, or to duly comply with the determination of an Arbitrator pursuant to Article VII.

 

(ii)         Unless
SCA knew or reasonably should have known of the events giving rise to an SCA Delay and the fact of such SCA Delay as evidenced
by job minutes, correspondence, memoranda or other writings furnished to or issued to SCA (which job minutes, correspondence, etc.
specifically refer to such events), SCA shall not become responsible for such delay until Developer notifies SCA of the events
giving rise to such SCA Delay, the fact of such SCA Delay and (to the extent then reasonably ascertainable) the estimated costs
incurred (or that may be incurred) as a result of such SCA Delay. As soon as reasonably practicable after the date when SCA knew
or reasonably should have known, or after Developer shall have notified SCA, of the events giving rise to such SCA Delay and the
fact of such SCA Delay, Developer shall furnish SCA with a detailed schedule impact analysis, with written narrative, showing the
impacts of any such SCA Delay on the so-called “critical path” of the Construction Schedule as then updated, such analysis
to include, without limitation, any concurrent delays or other delays impacting the Construction Schedule as then updated and not
caused by SCA. In the case of a continuing SCA Delay, Developer agrees to consult with SCA, and to cause Developer’s Construction
Manager(s) to consult with SCA, in an effort to mitigate such continuing SCA Delay.

 

(iii)        Without
limiting anything contained in Section 5.04, SCA shall pay, within thirty (30) days after receipt of Developer’s reasonably
detailed invoices therefor accompanied by customary back-up (including the detailed schedule impact analysis referred to in Section
5.05(a)(ii)), all increases in Public School Project Costs (including, without limitation, increases in Developer’s Project
financing costs) resulting from SCA Delay, as well as any additional costs resulting from SCA Delay incurred by Developer for completion
of portions of the core and shell of the Building other than the School Base Building Work, or completion of any Unit other than
the School Unit or completion of work in any Unit other than the School Unit.

 

    	 	-33-	 

     

    

 

(iv)      If
Developer and SCA are unable to resolve any dispute about SCA Delays or the costs occasioned thereby, or any dispute about whether
SCA is required to make a payment of Public School Project Costs under this Agreement, within five (5) Business Days after either
party has received written notice of such a dispute from the other party, either party may submit such dispute to expedited arbitration
pursuant to Article VII.

 

(v)       Intentionally
omitted.

 

(b)          Intentionally
omitted.

 

Section 5.06   SCA Audit Rights.
Commencing on the date of Substantial Completion of the School Base Building Work and continuing for twenty-four (24) months thereafter,
SCA shall have the right to audit the Public School Project Costs and to examine such books and records of Developer as may be
reasonably necessary in order to determine the Public School Project Costs. SCA agrees that any such audit and examination shall
be conducted only on reasonable prior notice, during normal business hours, at Developer’s office in New York City and at
SCA’s sole cost and expense. This paragraph shall survive Closing.

 

Section 5.07   SCA Pre- and Post-Turnover
Work. Notwithstanding anything to the contrary contained in this Agreement, the SCA Pre- and
Post-Turnover Work is being included in the GMP Contract solely as an accommodation to SCA, it being understood that the SCA Pre-
and Post-Turnover Work may or may not be commenced or completed by Closing and accordingly it shall not be a condition to SCA’s
obligation to close hereunder that the SCA Pre- and Post-Turnover Work has been commenced or Substantially Completed. SCA shall
pay Developer a Construction Supervision Fee in respect of the SCA Pre- and Post-Turnover Work in accordance with Exhibit H
annexed hereto. Developer and its contractors shall have access to the School Unit subsequent to Closing in order to perform the
SCA Pre- and Post-Turnover Work. Notwithstanding anything to the contrary contained herein, in no event shall the cost of the SCA
Pre- and Post-Turnover Work be considered in calculating the Public School Project Costs Not-to-Exceed Amount. SCA is responsible
for all costs of the SCA Pre- and Post- Turnover Work, and accordingly in the event the actual costs of the same exceed the estimates
set forth on Exhibit L annexed hereto, SCA shall be responsible for paying such excess and the Purchase Price shall be increased
accordingly; provided that SCA shall have the right to consult with the Construction Manager, in coordination with Developer, in
order to minimize such excess costs. This Section 5.07 shall survive Closing.

 

Section 5.08   MEP Equipment.
Developer will, at SCA’s cost and expense, cause factory testing to be performed and extended warranties to be issued (which
will be assigned to SCA (if assignable), or Developer will cooperate with SCA to enforce the warranties), with respect to the equipment
listed on Exhibit J annexed hereto (collectively, the “MEP Equipment”), and will accept delivery of such
MEP Equipment and cause the work described on Exhibit J to be performed. Developer’s Construction Manager’s
builder’s risk insurance will, in general, cover damage to such MEP Equipment to the extent such damage occurs on-site, but
SCA shall be solely responsible for any additional premiums required in order to provide such coverage or any other coverage applicable
to such MEP Equipment. Apart from the foregoing provisions of this Section 5.08, SCA shall have all responsibility (and Developer
shall have no liability) in connection with such MEP Equipment including, without limitation, with respect to the placement of
the same within the Building in the areas designated for the same on the School Fit-Out Construction Drawings. SCA hereby agrees
to indemnify, defend and hold Developer and all other Developer Indemnitees harmless from and against any and all losses, damages,
claims, liabilities, judgments, Legal Proceedings and other costs and expenses (including, without limitation, reasonable attorneys’
fees and disbursements) of every kind and nature which may be incurred by Developer or any other Developer Indemnitee in connection
with the delivery, placement, installation, hook-up, operation, maintenance and/or repair of the MEP Equipment. SCA hereby releases
and discharges Developer from any and all obligations, claims and liability in connection with the MEP Equipment including, without
limitation, if any warranties in connection with any MEP Equipment are voided for any reason. This Section 5.08 shall survive the
Closing or termination of this Agreement.

 

    	 	-34-	 

     

    

 

Article
VI

 

SUBSTANTIAL COMPLETION;
COMPLETION OF PUNCH LIST ITEMS; ACCESS FOR SCHOOL BASE BUILDING WORK AND SCHOOL F&E WORK: WARRANTIES

 

Section 6.01    Substantial Completion
of School Base Building Work and Completion of Punch List Items.

 

(a)         “Substantial
Completion” Defined. For purposes of this Agreement, “Substantial Completion,” “Substantially
Complete,” “Substantially Completed” and similar terms means full completion in accordance with the
100% School Base Building CD’s, except for minor details of construction, decoration, mechanical adjustment or installation
(“Punch List Items”), which Punch List Items shall have been identified in writing by the School Base Building
Architect after SCA shall have been afforded access to inspect the School Unit on the School Base Building Walk-Through Date.

 

(b)          Substantial
Completion of School Base Building Work.

 

(i)       Substantial
Completion of School Base Building Work. The School Base Building Work shall be deemed Substantially Completed as determined
in accordance with this Section 6.01(b) or on a date otherwise determined by an Arbitrator pursuant to Article VII hereof.

 

(ii)       Notices
to be Delivered; Walk-Through. Developer shall give SCA prompt notice of Developer’s achievement of the following construction
milestones shown on the Construction Schedule: Commencement of pouring of foundations; so called “topping out” of the
structural frame of the Building; and completion of enclosure of the School Unit. Developer shall notify SCA at least ninety (90)
days in advance of the projected date of Substantial Completion of the School Base Building Work (the “School Base Building
Initial Notice”). At least sixty (60) days prior to the earliest delivery date specified in the School Base Building
Initial Notice, Developer shall send to SCA a second notice (the “School Base Building First Confirmation Notice”)
confirming the date set forth in the School Base Building Initial Notice, or if such delivery date is no longer expected to be
met by Developer, such second notice shall set forth the revised anticipated delivery date. At least thirty (30) days prior to
the delivery date specified in the School Base Building First Confirmation Notice, Developer shall deliver to SCA a third notice
(the “School Base Building Last Confirmation Notice”) confirming the date set forth in the School Base Building
First Confirmation Notice, or if such delivery date is no longer expected to be met by Developer, such School Base Building Last
Confirmation Notice shall set forth the revised anticipated delivery date (which may be later but not earlier than the anticipated
delivery date set forth in the School Base Building First Confirmation Notice).

 

    	 	-35-	 

     

    

 

At least ten (10) days prior to the date
Developer believes the School Base Building Work will be Substantially Completed, Developer shall send SCA a notice (a “School
Base Building Substantial Completion Notice”) setting forth the anticipated School Base Building Substantial Completion
Date. Within five (5) Business Days after SCA’ s receipt of such School Base Building Substantial Completion Notice, Developer
and SCA shall establish a date reasonably acceptable to Developer and SCA (the “School Base Building Walk-Through Date”)
on which Developer and SCA shall jointly inspect the School Unit, which School Base Building Walk-Through Date shall be no earlier
than the anticipated School Base Building Substantial Completion Date set forth in the School Base Building Substantial Completion
Notice and no later than two (2) Business Days after such anticipated School Base Building Substantial Completion Date. In the
event the School Base Building Work is Substantially Complete on the School Base Building Walk-Through Date and SCA shall so certify
or an Arbitrator shall so determine in accordance with the procedures set forth in Article VII, the Substantial Completion Date
for the School Base Building Work shall be the date specified in the School Base Building Substantial Completion Notice. If the
School Base Building Work is not Substantially Complete on the School Base Building Walk-Through Date then the Substantial Completion
Date for the School Base Building Work shall not occur and Developer, at least five (5) days prior to the date Developer believes
the School Base Building Work will be Substantially Complete, shall send to SCA a second School Base Building Substantial Completion
Notice setting forth the anticipated School Base Building Substantial Completion Date. Within three (3) days after SCA’s
receipt of a second School Base Building Substantial Completion Notice, SCA shall establish a second School Base Building Walk-Through
Date, reasonably acceptable to Developer, on which Developer and SCA shall jointly re-inspect the School Unit, which second School
Base Building Walk-Through Date shall be no earlier than the anticipated Substantial Completion Date set forth in the second School
Base Building Substantial Completion Notice and no later than one (1) Business Day after such anticipated Substantial Completion
Date. In the event the School Base Building Work is still not Substantially Complete on the second School Base Building Walk-Through
Date, then the procedure set forth in the preceding two sentences shall be repeated as many times as necessary until the School
Base Building Work is Substantially Complete.

 

In the event that following any joint inspection
by Developer and SCA, SCA believes the School Base Building Work is not Substantially Complete, then within two (2) Business Days
after the completion of such inspection SCA shall furnish Developer with a written list of incomplete work (the “Incomplete
School Base Building Work”) which SCA believes must be completed. In the event Developer and SCA are unable to agree
whether the School Base Building Work is Substantially Completed, either party may refer such dispute to expedited arbitration
in accordance with the procedures set forth in Article VII. After the delivery to SCA of any School Base Building Substantial Completion
Notice and upon request by Developer, SCA shall use reasonable efforts to meet with Developer and Developer’s Construction
Manager at the Building (accompanied by SCA’s Project Representative and such of SCA’s architectural, engineering and/or
construction consultants (“SCA’s Inspection Consultants”) as Developer shall have reasonably requested),
prior to the date specified in such final School Base Building Substantial Completion Notice, to identify any items of Incomplete
School Base Building Work.

 

    	 	-36-	 

     

    

 

(iii)       Punch
List Items. Developer shall cause the School Base Building Architect to prepare the list of Punch List Items and shall cause
the same to be delivered to SCA no later than ten (10) Business Days after the earlier of (i) the date SCA certifies that the School
Base Building Work is Substantially Completed, or (ii) the date an Arbitrator, pursuant to Article VII, issues a decision that
the School Base Building Work is Substantially Complete. Developer shall cause the Punch List Items to be completed as soon as
reasonably practicable after completion of the list of Punch List Items, which obligation shall survive Closing.

 

(iv)       Notwithstanding
the forgoing, and without limiting the provisions of Section 5.02(f) regarding the Holdback Amount, Substantial Completion shall
be deemed to have occurred even though (A) there remain openings for construction hoists and/or cranes affixed to the Building,
which openings shall not prevent the performance of School F&E Work in accordance with the provisions of this Agreement in
the School Unit, (B) there remain temporary supports, bracing, vertical transportation, safety or other devices, or other work
necessary for completion of construction of the Building or the plazas adjacent thereto in accordance with Legal Requirements and
good construction practices, provided that the same shall not materially interfere with the performance of School F&E Work
in accordance with the provisions of this Agreement in the School Unit, and that any such work shall be subject to the provisions
of Section 6.01(b)(v), or (C) the SCA Pre- and Post-Turnover Work may not have been commenced or completed. Developer agrees that
the design for any such construction hoists and/or cranes referred to in subsection (A) of this paragraph will reflect that SCA
may be performing the F&E work in the School Unit during a period of time while such construction hoists and/or cranes remain
in operation. Accordingly, such construction hoists and/or cranes shall be designed in a manner, consistent with good construction
practices, that will minimize interference with SCA’s performance of the School F&E Work in the School Unit after Substantial
Completion shall have occurred. In addition, any openings for such construction hoists and/or cranes shall be temporarily sealed
and made weather tight for so long as such construction hoists and/or cranes remain in operation, and shall be permanently enclosed,
sealed and made weather tight promptly following removal of such hoists and/or cranes, which shall be removed as soon as reasonably
practicable. Any such temporary supports, bracing, vertical transportation, safety or other devices, or other work referred to
in subsection (B) of this paragraph shall be removed or completed as soon as reasonably practicable in accordance with good construction
practices, any damage to the School Unit caused by such removal or caused by completion of any such work shall be promptly repaired
by Developer, and any School Base Building Work remaining to be completed following such removal, or following completion of any
such work, shall be completed by Developer as soon as reasonably practicable in accordance with good construction practices, which
obligation shall survive Closing.

 

    	 	-37-	 

     

    

 

(v)       Developer’s
Performance of Work in the Building after Substantial Completion of the School Base Building Work. In completing the Punch
List items and in otherwise completing the initial construction of the Building and the plazas adjacent thereto after the date
of Substantial Completion of the School Base Building Work, to the extent that DOE is operating in the School Unit, Developer shall
(A) except in the case of an emergency, give DOE at least seventy-two (72) hours prior notice of such work if such work will entail
an interruption in elevator service, HVAC service, electricity, water or any other utility within the School Unit, provided that
in no event shall Developer shut down any such service to the School during a regular school day (except in the case of an emergency),
(B) perform such work other than during Business Hours, provided, that such work may be performed during Business Hours (but not
while the School is in session) with the consent of DOE, not to be unreasonably withheld, (C) comply with DOE’s security
requirements, and (D) use reasonable efforts to minimize any disruption to DOE’s operations in the School Unit for the purposes
contemplated by the School Program. If DOE requires that any employee or agent of Developer be accompanied by a representative
of DOE when entering any occupied portion of the School Unit to perform work, DOE shall make such representative available for
such purposes (1) as soon as reasonably practicable after a request therefor during Business Hours, and (2) within twelve (12)
hours after a request therefor at all other times. This paragraph shall survive the Closing.

 

Section 6.02     “Stand-By”
Labor Costs. During any period when SCA shall be performing the School Fit-Out Work, School
F&E Work or any other work in the School Unit, SCA shall be solely responsible for all indirect and so-called “stand
by” union labor costs occasioned by (i) performance of such School Fit-Out Work, School F&E Work or such other work,
(ii) SCA use of any elevators in the School Unit, and (iii) SCA use of Building HVAC systems and any other mechanical, electrical
or plumbing systems in the School Unit. SCA shall reimburse Developer for such labor costs within thirty (30) days after SCA’s
receipt of Developer’s reasonably detailed invoices therefor. This Section 6.02 shall survive Closing.

 

Section 6.03    Beneficial Interest in
Warranties. To the extent such designation as beneficiary (or co-beneficiary) is commercially
available, SCA (or, at SCA’s election, the New York City Department of Education a/k/a the Board of Education of the City
School District of the City of New York) shall be named as beneficiary (or as co-beneficiary, to the extent such warranties cover
elements of the core and shell of the Building outside the School Unit) in all warranties received by Developer from contractors
and suppliers engaged in performance of the School Base Building Work, including but not limited to the warranties specifically
required by the 100% School Base Building CD’s. To the extent commercially available, said warranties shall commence not
later than the date of Substantial Completion of the School Base Building Work, and shall continue for at least one (1) year after
the date of Substantial Completion of the School Base Building Work. Developer agrees to cooperate fully with SCA (or the New York
City Department of Education a/k/a the Board of Education of the City School District of the City of New York) and the Board of
Managers in the event that SCA (or the New York City Department of Education a/k/a the Board of Education of the City School District
of the City of New York) seeks to enforce its rights with respect to such warranties.

 

Article
VII

EXPEDITED JAMS ARBITRATION

 

Section 7.01    Expedited Arbitration.
The parties hereby agree that, notwithstanding anything to the contrary contained herein, all disputes under this Agreement, the
Master Lease and the Sublease, and any other document executed by the parties in connection with any of the foregoing, shall be
resolved by binding arbitration conducted in The City of New York (and not by litigation), in accordance with the provisions of
this Article VII, and judgment upon the award rendered may be entered in any court having jurisdiction thereof.

 

    	 	-38-	 

     

    

 

Section 7.02    Selection of Arbitrators;
Arbitration Procedure. The party hereto desiring to arbitrate a dispute pursuant to this Article
VII shall give notice (a “Dispute Notice”) to that effect to the other party, and a single arbitrator shall
be appointed in accordance with the JAMS Rules (as defined below) to resolve the dispute in question. For purposes of this Agreement,
the arbitrator actually serving to resolve any dispute is referred to as the “Arbitrator.”

 

Within two (2) Business Days after the Dispute
Notice has been delivered, or as soon as the Arbitrator is available to meet, both parties shall meet with the Arbitrator, who
shall attempt to mediate a resolution to the dispute acceptable to the parties. Within two (2) Business Days after either party
or the Arbitrator certifies in writing that such mediation is at an impasse, the dispute shall be determined by the Arbitrator
in accordance with the then effective JAMS Streamlined Arbitration Rules and Procedures (the “JAMS Rules”).
Copies of the Arbitrator’s decision shall be sent to Developer and to SCA and shall be binding on both. The Arbitrator shall
have no power to vary or modify any of the provisions of this Agreement, and his or her powers and jurisdiction are hereby limited
accordingly. The Construction Manager may participate in any dispute relating to the agreement between Developer and Construction
Manager. During any mediation provided for by this Article VII or the consideration of any issue by the Arbitrator pursuant to
this Article VII, SCA and Developer shall observe and perform each and every one of its obligations hereunder, including, without
limitation, SCA’s obligation to pay timely all Public School Project Costs or other costs contemplated hereunder (other than
amounts being disputed pursuant to this Article VII, unless Developer’s construction lender determines that any amount in
dispute is required, under the applicable contract, to be paid, in which case SCA shall be obligated to make such payment within
fifteen (15) days after such determination by Developer’s construction lender notwithstanding such dispute, but if the Arbitrator
determines that SCA was not required to make such payment, then SCA shall have the right to deduct such amount (to the extent not
theretofore refunded to SCA by Developer) from amounts payable by SCA pursuant to future Requisitions, and to the extent that future
Requisitions are insufficient, the Holdback Amount, without limiting SCA’s right to seek to collect any deficiency directly
from Developer). Any construction lender of Developer, or such lender’s representative, shall have the right to attend any
and all mediation and arbitration proceedings conducted pursuant to this Article VII for the purpose of observing such proceedings,
provided, however, that such lender shall have no right to participate in any way in any such proceeding.

 

Article
VIII

INSURANCE AND INDEMNITIES

 

Section 8.01    Developer’s Insurance
Coverages.

 

(a)          Developer
shall cause its Construction Manager to obtain and maintain through the date of completion of the Punch List Items:

 

    	 	-39-	 

     

    

 

(i)       workers’
compensation and disability benefits insurance as required by the State of New York and employer’s liability insurance in
the amount of Five Hundred Thousand Dollars ($500,000) per occurrence;

 

(ii)       commercial
general liability insurance against claims for property damage and/or personal injury and/or death arising out of the work performed
under this Agreement by or on behalf of Developer, written on an occurrence basis, to afford protection in the amount of Two Million
Dollars ($2,000,000) per occurrence, Four Million Dollars ($4,000,000) general aggregate and Four Million Dollars ($4,000,000)
products completed operations aggregate;

 

(iii)       automobile
liability insurance covering all automobiles and other vehicles licensed for road use used in connection with the work performed
under this Agreement by or on behalf of Developer, whether owned, non-owned and/or hired vehicles and automobiles, with endorsement
for “Changes in Business Auto and Truckers Coverage Forms - Insured Contract” in the amount of One Million Dollars
($1,000,000) combined single limit per accident for bodily injury and property damage;

 

(iv)       Excess
Umbrella Liability policy with limit of not less than Fifty Million Dollars ($50,000,000) each occurrence, and Fifty Million Dollars
($50,000,000) Aggregate. This policy should be excess of Employers Liability, General Liability and Automobile Liability policies.

 

(v)       builder’s
risk property insurance on all materials, equipment, machinery and supplies related to the work performed by or on behalf of Developer
under this Agreement, insuring against direct physical loss or damage to covered property (e.g., excluding the Land appurtenant
thereto) by all risk of physical loss, on a completed value non-reporting form basis, in the amount of the total cost of the work
required to be performed by Developer under this Agreement, but the policy may have a deductible feature consistent with the Construction
Manager’s customary practices.

 

(b)         Developer
shall cause the School Base Building Architect to maintain in full force and effect an errors and omissions policy until the School
Base Building Work is completed, including all Punch List Items, and a temporary certificate of occupancy has been obtained for
all portions of the Building (excluding the School Unit), in the amount of Two Million Dollars ($2,000,000) per claim and aggregate
per policy year. Developer shall not consent to the amendment or termination of such policy to limit or adversely affect SCA’s
coverage without SCA’s prior written approval, not to be unreasonably withheld or delayed.

 

(c)         With
respect to all insurance policies maintained by Developer’s Construction Manager as required hereunder, Developer shall,
within no more than ten (10) Business Days following receipt of a written request therefor, provide SCA with insurance certificates
evidencing such insurance policies.

 

(d)         Developer
shall deliver to SCA a certificate evidencing the replacement or renewal of any such insurance policy prior to the expiration thereof.
Developer and Developer’s Construction Manager shall cause SCA, The City of New York and DOE to be named as additional insureds
on all liability insurance policies required hereunder on a primary and non-contributory basis with respect to its work in its
defined space;

 

    	 	-40-	 

     

    

 

(e)         If
Developer fails to satisfy its obligations set forth in Sections 8.01(a) and (b) above, then upon at least ten (10) Business Days
prior notice SCA may, but shall not be obligated to, procure such insurance for such risks and pay the commercially reasonable
premiums for any such insurance. All commercially reasonable sums advanced by SCA to pay premiums on insurance policies which Developer
is required to cause Developer’s Construction Manager to maintain hereunder shall be due and payable by Developer to SCA
within thirty (30) days after demand accompanied by reasonable documentation supporting the amount of any such costs or expenses.
If any dispute regarding the interpretation or application of this Section 8.01(e) is not resolved within five (5) Business Days
after Developer’s receipt of SCA’s notice, either party may submit such dispute to expedited arbitration in accordance
with the procedures set forth in Article VII.

 

Section 8.02    SCA’s Insurance
Coverages.

 

(a)         During
the performance of the School Fit-Out Work and School F&E Work, SCA shall maintain or will cause its contractors and sub-contractors
to maintain:

 

(i)       workers’
compensation and disability benefits insurance as required by the State of New York and employer’s liability insurance in
the amount of Five Hundred Thousand Dollars ($500,000) per occurrence;

 

(ii)       commercial
general liability insurance against any and all claims for property damage and/or personal injury and/or death arising out of the
work performed under this Agreement by or on behalf of SCA, written on an occurrence basis, to afford protection written on an
occurrence basis, to afford protection in the amount of Two Million Dollars ($2,000,000) per occurrence, Four Million Dollars ($4,000,000)
general aggregate and Four Million Dollars ($4,000,000) products completed operations aggregate; Coverage shall be primary and
shall not contribute to any coverage held by the Developer/Contractor;

 

(iii)       Excess
Umbrella Liability policy with limit of not less than Twenty Five Million Dollars ($25,000,000) each occurrence, and Twenty Five
Million Dollars ($25,000,000) Aggregate. This policy should be excess of Employers Liability, General Liability and Automobile
Liability policies.

 

(iv)       automobile
liability insurance covering all automobiles and vehicles used in connection with the work performed under this Agreement by or
on behalf of SCA, whether owned, non-owned and/or hired vehicles and automobiles, with endorsement for “Changes in Business
Auto and Truckers Coverage Forms - Insured Contract” in the amount of One Million Dollars ($1,000,000) combined single limit
per accident for bodily injury and property damage;

 

(v)       builder’s
risk property insurance on all materials, equipment, machinery, including coverage for any hot testing, and supplies related to
the work performed by or on behalf of SCA under this Agreement, insuring against direct physical loss or damage to the covered
property related to the School Unit (e.g., excluding the Land appurtenant thereto) by all risk of physical loss, on a completed
value non-reporting form basis, in the amount of the total cost of the work required to be performed by SCA under this Agreement,
but the policy may have a deductible feature consistent with SCA’s customary practices. Coverage shall be primary and shall
not contribute to any insurance held by the Developer; and

 

    	 	-41-	 

     

    

 

(b)       SCA
shall cause SCA’s consultants to maintain in full force and effect an errors and omissions policy until the School Fit-Out
Work and School F&E Work is completed, in the amount of One Million Dollars ($1,000,000) per claim and aggregate per policy
year. SCA shall not consent to the amendment or termination of such policy to limit or adversely affect Developer’s coverage
without Developer’s prior written approval, not to be unreasonably withheld or delayed.

 

(c)       With
respect to all insurance policies maintained by SCA as required hereunder: (1) SCA shall, within no more than ten (10) Business
Days following receipt of a written request therefor, provide Developer with copies of such polices or insurance certificates evidencing
the same, and (2) SCA shall cause Developer, Trinity Place Holdings Inc. and TPHGreenwich Holdings LLC to be named as additional
insureds on all liability insurance policies on a primary and non-contributory basis with respect to its work in its defined space
and with respect to any equipment of SCA (e.g., MEP Equipment, etc.) located outside of SCA’s space.

 

(d)       SCA
shall endeavor to cause each insurance policy contemplated by Section 8.02(a) to provide that it will not expire or terminate or
be cancelled without, in each case, the insurer’s providing to SCA at least thirty (30) days’ prior written notice
of such expiration, termination or cancellation. SCA shall deliver to Developer a certificate evidencing the replacement or renewal
of any such insurance policy prior to the expiration thereof.

 

(e)       If
SCA fails to satisfy its obligations set forth in Sections 8.02(a) and (b) above, then upon at least ten (10) Business Days prior
notice Developer may, but shall not be obligated to, procure such insurance for such risks and pay the commercially reasonable
premiums for any such insurance. All commercially reasonable sums advanced by Developer to pay premiums on insurance policies which
SCA is required to maintain hereunder shall be due and payable to Developer by SCA within thirty (30) days after demand accompanied
by reasonable documentation supporting the amount of any such costs or expenses. If any dispute regarding the interpretation or
application of this Section 8.02(e) is not resolved within five (5) Business Days after SCA’s receipt of Developer’s
notice, either party may submit such dispute to expedited arbitration in accordance with the procedures set forth in Article VII.

 

Section 8.03    Waiver of Subrogation.
All policies of insurance required under this Agreement shall include a waiver of the right of subrogation with respect to all
the named insureds and additional insureds.

 

Section 8.04    Indemnification.

 

(a)       Developer
hereby agrees to indemnify, hold harmless from, and defend (or cause its insurance carrier to defend) all SCA Indemnitees against
any and all losses, damages, claims, liabilities, judgments, Legal Proceedings and other costs and expenses (including, without
limitation, reasonable attorneys’ fees and disbursements incurred by such SCA Indemnitees), of every kind and nature which
may be incurred by or imposed against any SCA Indemnitees to the extent arising out of or in connection with Developer’s
intentional misconduct or negligence in the performance of its obligations hereunder, except to the extent such losses are caused
directly or indirectly by (i) such SCA Indemnitees’ intentional misconduct or negligence or (ii) SCA’s consultants
in carrying out any of the School Fit-Out Work or School F&E Work.

 

    	 	-42-	 

     

    

 

(b)       SCA
hereby agrees to indemnify, hold harmless from, and defend to the fullest extent of the law (or cause its insurance carrier to
defend) all Developer Indemnitees against any and all losses, damages, claims, liabilities, judgments, Legal Proceedings and other
costs and expenses (including, without limitation, reasonable attorneys’ fees and disbursements incurred by such Developer
Indemnitees), of every kind and nature which may be incurred by or imposed against any Developer Indemnitees to the extent arising
out of or in connection with the intentional misconduct or negligence of SCA in SCA’s performance of the School Fit-Out Work
or School F&E Work or the intentional misconduct or negligence of SCA or its agents, except to the extent such losses are caused
by (i) Developer Indemnitees’ intentional misconduct or negligence, or (ii) Developer’s consultants in carrying out
any of the Developer’s obligations under this Agreement.

 

(c)       The
provisions of this Section 8.04 shall survive the termination or expiration of this Agreement as to matters arising prior to the
termination or expiration of this Agreement.

 

Article
IX

DEFAULT AND REMEDIES; CERTAIN TERMINATION PROVISIONS

 

Section 9.01    Default by Developer;
SCA’s Remedies.

 

(a)       If,
after the Commencement of Construction of the School Base Building Work, (I) Developer fails to perform the work it is required
to perform hereunder as a result of substantially all of the work on the School Unit at the time in question ceasing to be performed
for more than forty-five (45) consecutive days, or (II) Developer fails to cause the School Base Building Work to be Substantially
Completed no later than September 6, 2023 (provided, however, that any period during which Arbitration over whether Substantial
Completion has occurred shall not be considered for purposes of the foregoing deadline to the extent the Arbitrator determines
that Substantial Completion occurred on or prior to September 6, 2023), then provided (i) SCA is not then in default under this
Agreement beyond any applicable notice and cure period and (ii) no Force Majeure or SCA Delay is then continuing, SCA shall have
the right after ten (10) Business Days’ prior written notice to Developer, to (x) terminate this Agreement, the Master Lease
and the Sublease and recover all Public School Project Costs paid to Developer and any other actual (but not consequential or punitive)
damages incurred or suffered by SCA (it being understood that the termination of the Master Lease shall not be effective until
immediately after SCA has been refunded and has recovered all of the foregoing amounts), (y) enforce specific performance, or (z)
pursue any right or remedy available to SCA (but in no event shall SCA have the right to consequential or punitive damages), unless,
in the case of clause (I) above, (A) work on the School Unit at the time in question has resumed during said ten (10) Business
Day period and/or (B) (1) Developer has notified SCA during such ten (10) Business Day period that Developer intends to assign
this Agreement pursuant to Section 15.07(a) within thirty (30) days of the date of such notice and such assignment becomes effective
within such thirty (30) day period and (2) within five (5) Business Days after the effective date of such assignment, work on the
School Unit at the time in question has resumed, it being understood that in either case of (A) or (B) above, SCA shall not be
entitled to exercise any of the remedies set forth above. This paragraph shall survive the termination of this Agreement.

 

    	 	-43-	 

     

    

 

(b)       If
Developer defaults in its obligation to convey the School Unit to SCA pursuant to Article X for any reason other than due to a
default by SCA hereunder or the failure of a condition precedent to Closing which is for the benefit of Developer, then SCA may
(i) terminate this Agreement, the Master Lease and the Sublease, and be refunded all Public School Project Costs already paid to
Developer and recover any other actual (but not consequential or punitive) damages incurred or suffered by SCA (it being understood
that the termination of the Master Lease shall not be effective until immediately after SCA has been refunded and has recovered
all of the foregoing amounts), (ii) enforce specific performance, or (iii) pursue any other remedy but in no event shall SCA have
the right to consequential or punitive damages. This paragraph shall survive the termination of this Agreement.

 

(c)       If
Developer defaults with respect to any of its obligations under this Agreement, the Master Lease or the Sublease other than as
set forth in subsections (a) and (b) above, SCA shall not be entitled to terminate this Agreement, the Master Lease or the Sublease,
but shall be entitled to seek actual (but not consequential or punitive) damages incurred or suffered by SCA, and (1) in the event
such default is not cured within thirty (30) business days after written notice from SCA, then SCA shall have the right to exercise
self-help at Developer’s sole cost and expense, except that SCA shall not be entitled to perform any work at the Property
in connection with such default by Developer; provided, however, that SCA shall be entitled, as part of its self-help remedy, to
perform work solely within the School Unit so long as Developer is not performing or causing to be performed any work in or to
any portion of the Property, and such right of SCA shall be subject to the cure right of any Subleasehold Lender (as defined in
the Sublease) pursuant to the terms of the Sublease and/or (2) SCA shall have the right to seek specific performance.

 

(d)       Without
limiting SCA’s rights and remedies under Section 9.01(a) and (b) above, if this Agreement is terminated by SCA pursuant to
Section 9.01 hereof as a result of a default by Developer under this Agreement, and a Qualified Lender does not receive or is not
entitled to receive a New Sublease (as defined in the Sublease) (it being understood that the Master Lease shall remain in full
force and effect subject to the remainder of this paragraph), then, upon notice from SCA, Developer shall either (1) pay the SCA
Damages Amount (as defined below) to SCA within thirty (30) days thereafter (in which event the Master Lease shall automatically
terminate and the MOL Terminations shall be filed), or (2) hire a third-party real estate broker reasonably acceptable to SCA to
market and sell the Property and thereafter diligently pursue such sale, with the proceeds of such sale to be paid in the following
order: (i) first, to SCA to reimburse SCA for any Public School Project Costs paid by SCA to Developer pursuant to Article V of
this Agreement and actual (but not consequential or punitive) damages incurred or suffered by SCA (the “SCA Damages Amount”)
irrespective of any rights of any Qualified Lenders, other lenders or any other Persons (it being understood that SCA shall be
entitled to be repaid the SCA Damages Amount before any other person or entity); and (ii) thereafter, to Developer (subject to
any rights of Developer’s lenders under the applicable loan documents). Any such sale must be made free and clear of the
Master Lease and the Sublease, it being understood that SCA and Developer shall cause the MOL Terminations and any related transfer
tax forms to be executed, recorded and/or filed at the closing of the sale of the Property; provided, however, that the Master
Lease shall not be terminated and MOL Terminations shall not be filed until either (x) the date of, and concurrently with the closing
of, the sale of the Property and payment to SCA of the SCA Damages Amount, if an amount sufficient to pay the SCA Damages Amount
is not escrowed prior to such closing under the terms of an escrow agreement reasonably acceptable to SCA or (y) the date the SCA
Damages Amount is deposited into an escrow account under the terms of an escrow agreement reasonably acceptable to SCA pending
the closing of such sale, at which point the Master Lease shall be terminated and MOL Terminations shall be filed. For the avoidance
of doubt, SCA shall have the right to enforce this Section 9.01(d) by specific performance by causing a court to order a sale in
accordance with this Section.

 

    	 	-44-	 

     

    

 

(e)          Any
exercise of remedies under this Section 9.01 is subject to Article VII hereof.

 

Section 9.02      Default
by SCA; Developer’s Remedies.

 

(a)          If
SCA fails to timely satisfy any of its funding obligations under Article V (a “Funding Failure”) and
such failure remains uncured after fifteen (15) Business Days’ written notice from Developer, then, provided Developer
is not then in default under this Agreement beyond any applicable notice and cure period, Developer may (i) terminate this Agreement,
the Master Lease and the Sublease, cease all work on the School Base Building Work and be relieved of any obligation to sell the
School Unit to SCA, and SCA shall be liable for payment of (w) all then unpaid Requisitions, (x) all then unpaid Retainage, (y)
all Public School Project Costs previously incurred by Developer but not yet requisitioned pursuant to Article V (and Developer
shall be entitled to retain all sums previously disbursed to Developer), and (z) any other actual (but not consequential or punitive)
damages incurred or suffered by Developer, (ii) enforce specific performance or (iii) pursue any other remedy, but in no event
shall Developer have the right to consequential or punitive damages (the foregoing clauses (i)-(iii), collectively, the “Developer
Remedies”). Notwithstanding the foregoing, on two (2) occasions only in a given 12-month period, SCA shall be entitled
to receive a second written notice of a Funding Failure and in such case Developer shall not be entitled to enforce the foregoing
remedies unless SCA has not cured such Funding Failure within five (5) Business Days after such second notice is given. Notwithstanding
anything to the contrary contained herein, (I) any payment properly disputed by SCA as expressly permitted in this Agreement shall
not constitute a Funding Failure or a default by SCA under this Agreement unless and until such sum becomes due and payable pursuant
to the express terms of this Agreement and is not paid by SCA, and (II) Developer acknowledges that The City of New York has an
annual payment moratorium (which typically lasts two weeks) and that, subject to the remainder of this subclause (II), there shall
be no Funding Failure or default by SCA under this Agreement in the event that SCA fails to timely pay amounts due under this Agreement
because the applicable payment due date falls during such annual moratorium, in which case payment by SCA shall be due and payable
within fifteen (15) days after the date of the expiration of such moratorium (and it shall be a Funding Failure and a default by
SCA under this Agreement in the event SCA does not so pay by such date); provided, however, that the foregoing shall not be deemed
to give SCA any right to delay approval of any Requisition. SCA shall, however, (1) reasonably cooperate with Developer to pay
Developer as soon as possible (including prior to the effectiveness of such moratorium to the extent reasonably practical, even
if such payment is not due and payable until the moratorium is in effect), and (2) endeavor to promptly notify Developer in writing
upon becoming aware of the dates of any such moratorium period but in no event shall the failure to do so be deemed a default by
SCA under this Agreement. This paragraph shall survive the termination of this Agreement.

 

    	 	-45-	 

     

    

 

(b)          If
SCA defaults in its obligation to acquire the School Unit pursuant to Article X for any reason other than a default by Developer
hereunder or the failure of a condition precedent to Closing which is for the benefit of SCA, then Developer may pursue the Developer
Remedies. This paragraph shall survive the termination of this Agreement.

 

(c)          Notwithstanding
anything to the contrary contained in this Agreement, if Developer exercises any right under this Section 9.02 to terminate this
Agreement, then SCA shall pay to Developer, within thirty (30) days after receipt of Developer’s reasonably itemized demand
therefor, an amount equal to the sum of (A) Developer’s commercially reasonably projected costs to redesign and reconfigure
and, if applicable, retrofit the School Unit, (B) Developer’s reasonably projected carrying costs for a reasonable period
(e.g., real estate taxes, operating expenses, common charges under the Condominium Documents, debt service and marketing
expenses), and (C) any other actual (but not consequential or punitive) damages incurred or suffered by Developer (including, without
limitation, any payments due under Developer’s construction loan resulting from SCA’s default). Nothing contained in
this Section 9.02(c) shall be deemed to limit any other right or remedy of Developer hereunder. This paragraph shall survive the
termination of this Agreement.

 

(d)          If
SCA defaults with respect to any of its obligations under this Agreement, the Master Lease or the Sublease other than as set forth
in subclauses (a) and (b) above, Developer shall not be entitled to terminate this Agreement, the Master Lease or the Sublease
but shall be entitled to seek actual (but not consequential or punitive) damages incurred or suffered by Developer, and (1) in
the event such default is not cured within thirty (30) business days after written notice from Developer, then Developer shall
have the right to exercise self-help at SCA’s sole cost and expense, and/or (2) Developer shall have the right to seek specific
performance.

 

(e)          Any
exercise of remedies under this Section 9.02 is subject to Article VII hereof.

 

Section 9.03      Certain
Termination Provisions. Notwithstanding anything to the contrary contained herein:

 

(a)          If
this Agreement is terminated by Developer pursuant to Section 9.02 hereof, then the Master Lease and Sublease shall also terminate
(and the parties shall promptly execute, notarize and record any and all documents in order to effectuate the same). If this Agreement
terminates for any other reason, then, subject to the provisions of subsection 9.01(d) above, at any time after SCA has been paid
all amounts owed to SCA under this Agreement, at either party’s election, by written notice to the other party hereto, the
Master Lease and Sublease shall terminate (and the parties shall promptly execute, notarize and record any and all documents in
order to effectuate the same). Neither Developer nor SCA shall have any right to terminate the Sublease other than in connection
with a termination of this Agreement. The foregoing provisions of this Section 9.03(a) are subject, solely as between SCA and the
Subleasehold Lenders, to Article XV of the Sublease and any Interparty Agreement that is then in effect.

 

    	 	-46-	 

     

    

 

(b)          For
the avoidance of doubt, in the event a Subleasehold Lender or Permitted Designee (as defined in the Sublease) enters into a New
Sublease (as defined in the Sublease) the Master Lease shall remain in effect.

 

(c)          This
Article IX shall survive termination of this Agreement or Closing, as applicable.

 

Article
X

 

CONDITIONS TO CLOSING;
CLOSING; PCO

 

Section 10.01     Closing
Conditions. Developer shall convey, and SCA shall accept conveyance of, the School
Unit at a Closing, subject to satisfaction of each of the following Conveyance Conditions at or before the Closing (it being understood
that if there is any dispute between the parties regarding whether any such condition has been satisfied, either party may submit
the dispute to expedited arbitration pursuant to Article VII):

 

(a)          Substantial
Completion of the School Base Building Work has been achieved (which condition is for the benefit of SCA), subject to Section 5.07
hereof;

 

(b)          title
to the School Unit is free of Encumbrances other than the Permitted Encumbrances (it being understood that Permitted Encumbrances
shall include any exceptions generically or specifically relating to mechanics’ liens that the title company may raise as
a result of the SCA Pre- and Post-Turnover Work not being complete); and, if SCA elects, at its cost, title insurer will issue
a binding and enforceable ALTA form title policy (showing no Encumbrances other than the Permitted Encumbrances) to SCA, naming
SCA as the fee owner (which condition is for the benefit of SCA). SCA acknowledges and agrees that the following agreement shall
be a Permitted Encumbrance: that certain Agreement between Triborough Bridge and Tunnel Authority and Developer dated as of March
22, 2017, as the same may be amended and/or replaced.

 

(c)          Developer
delivering to SCA the Deed and the other closing deliveries described in this Article X (which condition is for the benefit of
SCA);

 

(d)          there
not having occurred any Major Event (which condition is for the benefit of both SCA and Developer);

 

(e)          the
Condominium Documents shall have been approved by SCA in accordance with and to the extent required by Article XIII hereof and
executed by each of the parties thereto (which condition is for the benefit of SCA and Developer);

 

(f)          the
Condominium Declaration being recorded and the Condominium being in full force and effect, and there being in force a valid and
effective policy of all-risk casualty insurance with standard coverages and endorsements (as specified in the Condominium Declaration)
covering the Common Elements to the extent constructed and in existence as of such date, to the extent of the full replacement
value thereof (which condition is for the benefit of SCA and Developer);

    	 	-47-	 

     

    

 

(g)          payment
by SCA to Developer (or Developer’s designee(s)) of any remaining outstanding amount in respect of the Purchase Price, other
than with respect to SCA Pre- and Post-Turnover Work which has not been performed as of Closing, it being understood that such
amount shall be paid by SCA subsequent to Closing pursuant to Section 5.02(g) hereof (which condition is for the benefit of Developer);
and

 

(h)          receipt
of a “No Action” letter from the New York State Attorney General’s office (which condition is for the benefit
of both SCA and Developer), it being understood, however, that at Developer’s option the sale of the School Unit will be
made pursuant to the offering plan, except that this Agreement shall contain all of the terms and conditions pertaining to the
sale of the School Unit to SCA and in the event of an inconsistency between the terms and conditions of the offering plan, on the
one hand, and the terms and conditions of this Agreement, on the other hand, the terms and conditions of this Agreement shall control.
Notwithstanding anything set forth in the offering plan to the contrary, SCA represents that it will not rely on any of the statements,
terms, provisions or representations made in the offering plan, and waives and disclaims any of the protections therein and all
conditions of the Martin Act (to the fullest extent permitted by law).

 

Section 10.02    Right
to Waive Conditions. Either party hereto shall have the right to waive compliance by the other
party hereto with any of the conveyance conditions or with any particular matter included within any of the conveyance conditions.
Any such waiver must be in writing and must refer specifically to the condition (or matter) being waived.

 

Section 10.03    Closing
and Closing Date. The Closing shall take place at 10:00 a.m. at the offices of Developer’s
counsel, or at another location in the City as may be selected by Developer, on a date (the “Closing Date”)
following the later of (A) the date that Substantial Completion of the School Base Building Work has been certified by SCA or
determined by an Arbitrator, and (B) the filing of the Condominium Declaration with the City Register’s office, after at
least five (5) Business Days’ prior written notice given by either party. If the Closing has not occurred by June 1, 2030
and this Agreement has not therefore been terminated, then (a) this Agreement shall automatically terminate on June 1, 2030, and
(b) thereafter neither party shall have any further obligations hereunder except for those which expressly survive termination
of this Agreement.

 

Section 10.04    Developer’s
Closing Deliveries. Subject to the terms of this Agreement, Developer shall execute and deliver
to SCA the following at Closing:

 

(a)          a
bargain and sale deed without covenants to the School Unit in recordable form, duly executed and acknowledged (the “Deed”),
conveying fee simple title to the School Unit to SCA;

 

(b)          such
transfer tax forms as shall be required in connection with the Deed (collectively, the “Transfer Tax Forms”);
SCA having advised Developer that SCA is exempt from State of New York and City of New York transfer taxes with respect to conveyance
of the School Unit and that in no event shall any transfer taxes be payable by Developer in connection with such conveyance;

 

    	 	-48-	 

     

    

 

(c)          the
title affidavit(s) described in Section 11.02;

 

(d)          a
certificate of non-foreign status pursuant to Section 1445 of the IRC Code;

 

(e)          a
certificate of good standing of Developer and all approvals, authorizations, consents or other actions by or filings with any Person
(if any) which are required to be obtained or completed by Developer in connection with the execution and delivery of any Closing
documents;

 

(f)          the
MOL Terminations and any related transfer tax forms; and

 

(g)          any
other instruments or documents to be executed and/or delivered by Developer pursuant to this Agreement at or prior to Closing that
have not been executed or delivered as of the Closing Date.

 

Section 10.05     SCA’s
Closing Deliveries. At Closing, SCA shall accept delivery of the Deed and shall execute and
deliver to Developer the following:

 

(a)          any
unpaid sums due by SCA under this Agreement;

 

(b)          the
Transfer Tax Forms;

 

(c)          the
MOL Terminations and any related transfer tax forms; and

 

(d)          any
other statements or documents to be executed or delivered by SCA at Closing, in accordance with the provisions of this Agreement.

 

Section 10.06    Title
Insurance Premiums; Apportionments; “True-Up” Adjustment to Purchase Price.

 

(a)          At
Closing, SCA shall pay the costs for the issuance of the title insurance commitment and the policy issued pursuant thereto (if
SCA elects to obtain such insurance).

 

(b)          At
Closing, Developer and SCA shall apportion water and real property taxes, sewer charges, utility deposits, and payments under any
service contracts, all as shall be customary for transactions of this nature as well as common charges for the School Unit, if
any based upon the allocation schedule attached as Exhibit B to the Bylaws of the Condominium. SCA agrees to reasonably cooperate
with Developer if Developer endeavors to pursue any real property tax waiver, abatement or exemption. In the event of a credit
due Developer, Developer may make application to the NYC Department of Finance for a refund. For purposes of clarification, SCA
will be responsible for paying to Developer at Closing SCA’s proportionate share of real estate taxes as of Closing even
though SCA may be tax exempt, and SCA will have the right to seek a refund from the taxing authority subsequent to Closing in respect
of such payment so made to Developer by SCA, but Developer will have no obligation or liability in the event such refund is not
received by SCA.

 

    	 	-49-	 

     

    

 

(c)          The
Purchase Price shall be adjusted to reflect a “true-up” of Public School Project Costs that have been previously paid
by SCA, during the period commencing after the initial Requisition following the first draw under Developer’s construction
loan through the day immediately preceding the Closing, on the basis of allocations pursuant to the Description of Hard Cost Allocation
and the Land Value and Soft Cost Allocation on Exhibit G. The “true-up” adjustment shall reflect any changes
to the underlying bases for such allocations (e.g., percentage of gross square footage, land allocation percentage) occurring
between the initial Requisition following the first draw under Developer’s construction loan through the day immediately
preceding the Closing. If the “true-up” adjustment results in an amount due Developer, such amount, with interest at
Developer’s cost of borrowing, shall be added to the Purchase Price. If the “true-up” adjustment results in an
amount due SCA, such amount, with interest at SCA’s cost of borrowing, shall be deducted from the Purchase Price.

 

Section 10.07     Payment
of Common Charges. SCA’s obligation to pay common charges under the Condominium Declaration with respect to the School
Unit will commence from and after the Closing Date for the School Unit. This Section 10.07 shall survive the Closing.

 

Section 10.08     Developer’s
Right of Access. Without limiting any right of access provided to Sponsor (as defined in the
Condominium Documents), the Board of Managers or any other Unit Owner under the Condominium Documents, Developer hereby reserves
unto itself, and SCA acknowledges and agrees to such reservation, a right of reasonable access by Developer and its contractors
to the School Unit from time to time and at reasonable times in order to (1) complete the Punch List Items and/or, (2) at SCA’s
sole cost and expense, to perform necessary work including, without limitation, installing a hoist or elevators, fire sprinkler
loop, infrastructure devices, data gathering panels and/or communicating stairs, in the case of this subclause (2) if the acts
or omissions of SCA or its design professionals or other consultants (or any SCA Design Non-Compliance or Post-April Non-Compliance)
are delaying Developer’s ability to obtain (a) any temporary certificate of occupancy for any unit or floor other than the
School Unit or (b) a PCO (as defined below), it being understood and agreed that, the forgoing notwithstanding, SCA shall be fully
responsible for promptly and diligently performing all work necessary within the School Unit in order to enable Developer to obtain
(a) all temporary certificates of occupancy for units and floors other than the School Unit and (b) the PCO, but SCA shall not
be responsible for performing any work necessitated as a result of the acts or omissions (where there is a duty to act) of another
unit owner in the Building. Any such work to complete the Punch List Items or to obtain temporary certificates of occupancy and
the PCO shall be undertaken in a manner consistent with SCA’s reasonable security requirements and so as not to interfere
with the conduct of SCA’s business in the School Unit for the purposes described in the School Program, provided, however,
that in no event shall Developer be obligated to employ any so-called “overtime” labor in connection with the completion
of such Punch List Items. This Section 10.08 shall survive the Closing.

 

Section 10.09     Casualty;
Condemnation. (a) If a Major Event occurs and either party exercises its right not to close
on the conveyance of the School Unit contemplated by this Agreement, then this Agreement shall terminate and the insurance proceeds
or the condemnation award, as the case may be, relating to the School Unit shall be equitably apportioned between SCA and Developer
as applicable;

 

    	 	-50-	 

     

    

 

(b)          If
(i) a Major Event occurs and Developer exercises its right not to close on the conveyance of the School Unit contemplated by this
Agreement, (ii) SCA was not in default beyond applicable notice and cure periods under this Agreement at the time the Major Event
occurred and (iii) Developer, on or prior to the second (2nd) anniversary of the date upon which such Major Event occurred, constructs
a building on the Land, then, Developer shall not, on or prior to such second (2nd) anniversary, sell or lease such building (or
any portion thereof in excess of 50,000 gross square feet) to any party for the primary purpose of operating a pre-K, kindergarten,
elementary or middle school through eighth grade (the “School”), unless Developer shall have first given SCA
written notice thereof (which notice, in Developer’s sole discretion, may be given to SCA at any time after Developer has
elected to construct a building on the Land and before consummating a sale or lease of a School to a party other than SCA) containing
the material economic and other terms upon which Developer is willing to sell or lease, as applicable, the School (the “ROFO
Notice”). SCA shall notify Developer not later than thirty (30) days after receipt of the ROFO Notice (the “ROFO
Period”), TIME BEING OF THE ESSENCE, that it elects to purchase or lease, as applicable, the School, upon the terms and
conditions contained in the ROFO notice. If SCA shall timely elect to purchase or lease, as applicable, the School as aforesaid,
then Developer shall prepare, and the parties shall execute and deliver a contract of sale or lease, as applicable, containing
the terms set forth in the ROFO Notice and other provisions reasonably acceptable to the parties (unless Developer’s ROFO
Notice contained a contract of sale or lease document, as applicable, attached thereto, in which case the parties hereto shall
execute such contract of sale or lease form after completing any blanks therein in a manner consistent with the ROFO Notice and,
to the extent not addressed by the ROFO Notice, otherwise reasonably acceptable to the parties), within sixty (60) days after the
giving of notice by SCA of its election to purchase or lease, as applicable, the School in accordance with the provisions of this
paragraph. In the event SCA shall fail to elect to purchase or lease, as applicable, the School prior to the end of the ROFO Period,
TIME BEING OF THE ESSENCE, or SCA otherwise waives such election in writing prior to the end of the ROFO Period, TIME BEING OF
THE ESSENCE, Developer shall be free to sell or lease the Property to any other party or otherwise deal with the Property as Developer
sees fit and without regard for any rights of SCA by virtue of this Agreement or otherwise. This Section 10.09(b) shall survive
the termination of this Agreement.

 

Section 10.10     PCO.
Subsequent to Closing, and subject to the provisions of Section 10.08 hereof, Developer shall obtain a permanent certificate of
occupancy for the Building (“PCO”). SCA shall provide reasonable protections so as not to delay Developer’s
ability to obtain the PCO and shall use its best efforts to cause the New York State Attorney General’s office to waive
any requirement that any funds be deposited in escrow in respect of work to be performed in the School Unit in order for Developer
to obtain the PCO. The provisions of this Section 10.10 shall survive the Closing.

 

Article
XI

 

REMOVAL OF TITLE DEFECTS

 

Section 11.01     Curing
Title Defects. Developer shall remove or cause to be removed of record or bonded or affirmatively
insured or omitted as an exception to title by the Title Insurer, at or prior to Closing, any liens or encumbrances that can be
removed by payment of a liquidated amount created or suffered by Developer against the School Unit, other than any lien or encumbrance
consented to or occasioned (directly or indirectly) by SCA or that constitutes a Permitted Encumbrance. Developer shall have no
other obligation to remove any liens, encumbrances or other title exceptions.

 

    	 	-51-	 

     

    

 

Section 11.02     Title
Affidavits. (a) At or before the Closing, Developer shall give the Title Insurer an owner’s
affidavit of title substantially in the form attached hereto as Exhibit R (with such edits as may be necessary to reflect
the then current state of facts).

 

(b)          If
a search of the title discloses judgments, bankruptcies or other returns against other Persons having names similar to those of
Developer, on or before the Closing Date, Developer will establish to the satisfaction of the Title Insurer that such judgments,
bankruptcies or other returns are not against Developer.

 

Article
XII

 

REPRESENTATIONS, WARRANTIES;
COVENANTS AND RESTRICTIONS; COMPLETION GUARANTY AND BAD BOY GUARANTY

 

Section 12.01    Developer’s
Representations. Developer represents that:

 

(a)          Developer
is a limited liability company duly formed, validly existing and in good standing under the laws of the State of Delaware and has
all requisite limited liability company power and authority to carry on its business as now being conducted. Developer has the
requisite limited liability company power and authority to execute and deliver this Agreement and to consummate the transactions
contemplated hereby. The execution, delivery and performance by Developer of this Agreement and the transactions contemplated hereby
have been duly and validly authorized by all requisite action (including such requisite action by the direct and indirect members
of Developer). This Agreement has been duly executed and delivered by Developer.

 

(b)          There
are no approvals, authorizations, consents or other actions by or filings with any Person that are required to be obtained or completed
by Developer in connection with the execution and delivery of this Agreement, except those that have been obtained by Developer.

 

(c)          To
Developer’s actual knowledge, there are no outstanding judgments, orders, writs, injunctions, or decrees of any Government
Entity, no pending Legal Proceedings or material threats of Legal Proceedings, in each instance against Developer which are reasonably
likely to have a material adverse effect on Developer’s performance of its obligations under this Agreement.

 

(d)          The
representations of Developer in this Section 12.01 are true, correct, and complete in all material respects as of the date of this
Agreement.

 

Section 12.02     SCA’s
Representations. SCA makes the representations and warranties set forth below:

 

(a)          SCA
is a public benefit corporation created and validly existing under the laws of the State of New York and has all requisite corporate
power and authority to carry on its business as now being conducted. SCA has the requisite corporate power and authority to execute
and deliver this Agreement and to consummate the transactions contemplated hereby. The execution, delivery and performance by SCA
of this Agreement and the transactions contemplated hereby have been duly and validly authorized by all requisite action. This
Agreement has been duly executed and delivered by SCA.

 

    	 	-52-	 

     

    

 

(b)          Except
as contemplated by Section 5.01(c) of this Agreement, there are no approvals, authorizations, consents or other actions by or filings
with any Person that are required to be obtained or completed by SCA in connection with the execution and delivery of this Agreement
or in connection with any action required to be taken by SCA hereunder, except those that have been obtained.

 

(c)          To
SCA’s actual knowledge, there are no outstanding judgments, orders, writs, injunctions, or decrees of any Government Entity,
no pending Legal Proceedings or material threats of Legal Proceedings, in each instance against SCA that are reasonably likely
to have a material adverse effect on SCA’s performance of its obligations under this Agreement.

 

(d)          The
representations and warranties of SCA in this Section 12.02 are true, correct, and complete in all material respects as of the
date of this Agreement.

 

Section 12.03     Condominium
Documents Covenants. SCA shall reasonably cooperate with Developer and execute and deliver to Developer such documents and
affidavits as Developer may reasonably request in connection with the Condominium Documents including, without limitation, in
order to obtain a “No Action” letter from the New York State Attorney General’s office. The “No Action”
letter will provide that the conveyance of the School Unit will occur without a temporary certificate of occupancy for the School
Unit. SCA shall reasonably cooperate with Developer to obtain the Attorney General’s approval of the “No Action”
letter. Developer will apply for a “No Action” letter reasonably in advance of the Closing.

 

Section 12.04     Completion
Guaranty; Construction Lender’s Failure to Fund; and Bad Boy Guaranty.

 

(a)          At
the closing of the Construction Loan, Developer shall provide a completion guaranty (the “Completion Guaranty to SCA”)
in favor of SCA with respect to the School Base Building Work (but, for purposes of clarification, excluding the SCA Pre- and Post-Turnover
Work) from the same guarantor or guarantors (the “Guarantor”) as required by Developer’s construction
lender and in the form of Exhibit S hereto, subject to the remainder of this paragraph. Guarantor will not be liable for changes
in the scope of any work made after Developer’s construction lender has exercised remedies under the applicable loan documents.
The Completion Guaranty to SCA will include a guaranty to obtain a PCO for the Building, to the extent of Developer’s obligation
therefor set forth in this Agreement and the guaranteed obligations will be subject to Developer’s construction lender funding
the Construction Loan and subject to SCA’s obligations under this Agreement. If, prior to Closing, Developer’s construction
lender fails to fund an advance of the Construction Loan in excess of $10,000,000 when the construction lender is required to do
so under the construction loan documents, and such failure has not been cured within one (1) year after notice from SCA to Developer
and the construction lender (it being understood that such failure may be cured by Developer obtaining replacement funds for such
failure), SCA, subject to the terms of the Interparty Agreement, will, unless Developer is diligently attempting to cause the construction
lender to remedy such failure or is otherwise diligently seeking to obtain funds from another source as a substitute for such unfunded
amount, have the right to terminate the Master Lease, Sublease and this Agreement upon thirty (30) days’ prior written notice
to Developer and the construction lender, in which case, unless such failure has been cured within such thirty (30) day period,
the Guarantor shall reimburse SCA for all Public School Project Costs paid by SCA to Developer, and thereafter no party shall have
any further obligation under the Master Lease, Sublease or this Agreement except for those obligations which expressly survive
the termination of the Master Lease, Sublease and/or this Agreement, as applicable.

 

    	 	-53-	 

     

    

 

(b)          At
the closing of the Construction Loan, Developer shall provide a “bad boy” guaranty in favor of SCA (the “Bad
Boy Guaranty to SCA”) from the Guarantor in substantially the same form as provided to the construction lender (to the
extent applicable to the School Base Building Work and the transactions contemplated hereby), with respect to actual losses incurred
by SCA due to the acts of Developer.

 

Article
XIII

 

CONDOMINIUM DOCUMENTS

 

Section 13.01     Approval
of Condominium Documents. The parties hereby approve the draft Condominium Declaration, Condominium Bylaws and House Rules
(the “Condominium Documents”) attached hereto as Exhibit T and agree that Developer may prepare and/or
enter into the Condominium Documents attached as Exhibit T, subject to the remainder of this Section 13.01. Prior to Closing,
Developer may make any changes to the Condominium Documents that do not directly or adversely affect the School Unit, School Limited
Common Elements or General Common Elements (all as described in the Declaration) without the consent of SCA, provided that, subject
to Section 3.03(b) above, such changes shall not be inconsistent with Section 3.01(a)(vi) hereof regarding the size of the School
Unit or otherwise adversely affect the functionality or, except to a de minimis extent, operations of the School Program. All
other changes to the Condominium Declaration and Condominium Bylaws prior to Closing shall require the consent of SCA in its sole
discretion. In the event that SCA believes that such changes would directly or adversely affect the School Unit, School Limited
Common Elements or General Common Elements or be inconsistent with Section 3.01(a)(vi) hereof regarding the size of the School
Unit or otherwise adversely affect the functionality or, except to a de minimis extent, operations of the School Program, subject
to Section 3.03(b) above, the issue shall be submitted to Arbitration. Following the Closing, any amendment to the Condominium
Documents shall be subject only to the provisions thereof. Developer shall have discretion to determine when on or prior to Closing
the Condominium Documents will be submitted for filing and/or recorded. Developer shall have the right to merge existing tax lots
comprising the Property in connection with the formation of the condominium, and SCA shall reasonably cooperate in connection
therewith. Developer shall have the right, prior to or subsequent to Closing, to file or cause to be filed in the City Register’s
Office an amended and restated Condominium Declaration, and file or cause to be filed with the Tax Map Unit of the Department
of Finance and the City Register’s Office an amendment to the Floor Plans, that subdivides a portion of the condominium
into individual residential units and/or individual retail units and which reflects such additional changes to the Condominium
Documents relating solely to the subdivision of the residential and/or retail portions of the Condominium as Developer shall determine
in its sole discretion, provided that Developer will comply with the standards set forth in the second sentence of this Section
13.01. Prior to Closing, Developer will provide SCA with written notice at least five (5) business days prior to amending the
Condominium Documents in any respect that would affect the School Unit, School Limited Common Elements or General Common Elements.
All other changes to the Condominium Documents made prior to Closing shall be provided by Borrower to SCA. This Section 13.01
does not limit the respective rights and obligations of the parties under Article III and Section 5.04 hereof. This Section 13.01
shall survive Closing.

 

    	 	-54-	 

     

    

 

Article
XIV

 

NOTICES

 

Section 14.01     Notices.
Whenever it is provided in this Agreement that a notice, demand, request, consent, approval or other communication shall or may
be given to or served upon either of the parties (or their respective successors or assigns) by the other, and whenever either
of the parties shall desire to give or serve upon the other any notice, demand, request, consent, approval or other communication
with respect hereto or to the subject matter hereof, each such notice, demand, request, consent, approval or other communication
shall be in writing and shall be sent by national overnight delivery service or personal delivery, addressed as follows (or to
such other address and person as shall be designated from time to time by SCA or Developer, as the case may be, in a written notice
under this Article XIV):

 

	If to SCA:	 
	 	 
	 	
        New York City School Construction Authority

        30-30 Thompson Avenue

        Long Island City, New York 11101

        Attn: Ross J. Holden, Executive Vice President & General
        Counsel

	 	 
	 	with a copy simultaneously to:
	 	 
	 	
        Herrick, Feinstein LLP

        2 Park Avenue

        New York, New York 10016

        Attn: Doug Heller, Esq.

         

	If to Developer:	
        c/o Trinity Place Holdings Inc.

        340 Madison Avenue, Suite 3C

        New York, NY 10173

        Attn: Matthew Messinger

 

    	 	-55-	 

     

    

 

	 	
        with a copy simultaneously to:

         

        c/o Trinity Place Holdings Inc.

        340 Madison Avenue, Suite 3C

        New York, NY 10173

        Attn: Miriam Harris

         

	 	
        and a copy simultaneously to:

         

        Kramer Levin Naftalis & Frankel LLP

        1177 Avenue of the Americas

        New York, New York 10036

        Attn: James P. Godman, Esq.

 

Section 14.02     All
notices shall be deemed effective upon receipt. Any notice sent by national overnight delivery service or personal delivery
shall be deemed given on the date of receipt or refusal as indicated on the receipt of the national overnight delivery service
or personal delivery service. Any notice may be given either by a party or by such party’s attorney. Developer or SCA may
designate, upon not less than five (5) business days’ notice given to the others in accordance with the terms of this Article
14 additional or substituted parties to whom notices should be sent hereunder.

 

Article
XV

 

MISCELLANEOUS

 

Section 15.01     Further
Assurances. Each of the parties shall take such actions and execute and deliver such other instruments
and documents as may be reasonable, necessary or appropriate to effectuate the transactions contemplated under, this Agreement,
provided, however, that the taking of such acts or the execution of such documents will not result in any cost or liability (other
than a de minimis cost or expense) to the respective party that is not otherwise required under this Agreement.

 

Section 15.02     Governing
Law. This Agreement shall be governed and construed in accordance with the laws of the State
of New York, without regard to principles of conflicts of law.

 

Section 15.03     Amendments
and Waivers in Writing. This Agreement may not be modified, waived, or amended except by written
agreement executed by all the parties.

 

Section 15.04     Delays
not a Waiver. Except as expressly provided in this Agreement, no delay on the part of any party
hereto in exercising any right, power or privilege hereunder shall operate as a waiver thereof or as a waiver or any other right,
power or privilege hereunder, nor shall any single or partial exercise of any right, power or privilege hereunder preclude any
other or further exercise hereunder. Except as otherwise provided in this Agreement, the rights and remedies of each party under
this Agreement are cumulative and are not exclusive of any rights or remedies that the party may otherwise have at law or in equity.

 

    	 	-56-	 

     

    

 

Section 15.05     Execution
in Counterparts. This Agreement may be executed in counterparts.

 

Section 15.06     Exhibits;
Headings. The exhibits attached hereto or subsequently incorporated herein are (and shall be
deemed) parts of this Agreement. The headings of this Agreement are for purposes of reference only and shall not limit or otherwise
affect the meaning hereof.

 

Section 15.07     Assignments
of this Agreement. (a) Developer shall not assign this Agreement, or any of its rights or obligations
herein or hereunder, except, upon not less than ten (10) Business Days’ prior notice to SCA, to a Qualified Developer. Developer
shall also have the right to assign and/or mortgage this Agreement to its lender. Any attempted assignment in violation of this
Section 15.07(a) shall be null and void.

 

(b)          SCA
shall not assign this Agreement, or any of its rights or obligations herein or hereunder, except that (i) after Substantial Completion
of the School Fit-Out Work and performance by SCA of all of its financial obligations under this Agreement, SCA may assign this
Agreement or such rights or obligations (including without limitation its rights under Section 6.03) to the New York City Department
of Education a/k/a the Board of Education of the City School District of the City of New York, and (ii) SCA may assign this Agreement
or such rights or obligations with the prior written consent of Developer. Any such assignee shall assume all of SCA’ s then
remaining obligations hereunder and shall confirm such assumption, by a writing satisfactory to Developer, prior to the effective
date of such assignment. No such assignment shall relieve SCA of any remaining financial or other obligations hereunder. Any attempted
assignment in violation of this Section 15.07(b) shall be null and void.

 

Section 15.08    Binding
on Permitted Successors and Assigns. This Agreement (and all terms thereof, whether so expressed
or not), shall be binding upon the respective successors, permitted assigns and legal representatives of the parties and shall
inure to the benefit of and be enforceable by the parties and their respective successors, permitted assigns and legal representatives.

 

Section 15.09     Remedies.
Except as specifically provided herein, each party has and may pursue all rights available at law or in equity by reason of the
failure, by any other party hereto, to keep or perform such other party’s agreements or obligations under this Agreement.

 

Section 15.10     Submission
to Jurisdiction. Developer and SCA hereby irrevocably and unconditionally (i) agree that the
exclusive forum for confirming or challenging an arbitration award pursuant to Article VII hereof shall be the Supreme Court of
the State in New York County, (ii) consent to, and waive any and all personal rights under, the laws of any state to object to
the jurisdiction of each such court in any such action, and (iii) waive any and all rights to a trial by jury. In furtherance
of such agreement, Developer and SCA agree, upon request of the other party, to discontinue (or cause to be discontinued) any
such suit, action or proceeding pending in any other jurisdiction or court, and Developer and SCA irrevocably consent to the service
of any and all process in any such suit, action or proceeding by service of copies of such process to Developer or SCA, as the
case may be, at its address provided herein.

 

    	 	-57-	 

     

    

 

Section 15.11     Severability.
If any term, covenant, condition or provision of this Agreement is determined by a final judgment to be invalid or unenforceable,
the remaining terms, covenants, conditions and provisions of this Agreement shall not be affected thereby, and each other term,
covenant, condition and provision of this Agreement shall be valid and enforceable to the fullest extent permitted by law.

 

Section 15.12     No
Rights in Third Parties; Not Joint Venture Partners. Nothing in this Agreement, express or implied,
is intended: (i) to confer on any Person, other than the parties hereto, any rights, obligations, liabilities, or remedies; (ii)
to constitute SCA as a partner or co-venturer of Developer or each other; or (iii) to waive any claim or right of any party hereto
against any Person who is not a party hereto.

 

Section 15.13     No
Construction Against Draftsperson. This Agreement shall be construed without regard to any presumption
requiring construction against the party drafting this Agreement.

 

Section 15.14     Broker.
Developer and SCA each represents and warrants to the other that it has not dealt with any broker in connection with this contract
other than Newmark Grubb Knight Frank (“Broker”) and that neither knows of any other broker who has claimed
or may have the right to claim a commission in connection with this transaction. Developer and SCA shall indemnify and defend
each other against any costs, claims or expenses, including attorneys’ fees, arising out of the breach on their respective
parts of the aforesaid representations and warranties. In the event the closing of the sale of the School Unit occurs, each of
Developer (pursuant to a brokerage agreement) and SCA (pursuant to a consulting contract) shall make a payment to Broker subject
to and upon the terms of the applicable agreement.

 

Section 15.15     Survival.
Those provisions of this Agreement that by their terms or general intent survive any termination or cancellation of this Agreement
shall so survive as will any claim that any party may have against the other for a default occurring prior to such termination,
all of which shall survive such termination.

 

Section 15.16    Exculpation.
SCA shall look solely to the estate of and property of Developer in the School Unit for the satisfaction of SCA’s remedies
for the collection of a judgment (or other judicial process) requiring the payment of money by Developer in the event of a default
by Developer under this Agreement, and no other property or assets of any party who could or does constitute Developer shall be
subject to levy, execution or other enforcement procedure for the satisfaction of SCA’s remedies under or with respect to
this Agreement or the relationship of Developer and SCA hereunder. Accordingly, and not by way of limitation, none of the trustees,
directors, officers, shareholders, partners, members, direct or indirect investors, consultants or representatives of Developer
or any Affiliate of Developer shall be personally liable for the obligations of Developer hereunder. Nothing contained herein
shall be deemed to release the guarantors thereunder from liability under the Completion Guaranty to SCA or Bad Boy Guaranty to
SCA.

 

Section 15.17    Acknowledgment
Regarding Play Areas. The parties acknowledge and agree that in no event may the school play
areas described in Exhibit I and depicted on Exhibit M be designed or constructed in a manner so as to constitute
or qualify as “Floor Area,” as such term is defined in Section 12-10 of the Zoning Resolution of The City of New York.

 

This Article XV shall survive the Closing
or termination of this Agreement.

 

    	 	-58-	 

     

    

 

IN WITNESS WHEREOF, Developer and SCA have
executed this Agreement as of the date first above written.

 

	 	TPHGREENWICH OWNER LLC
	 	 	 	 
	 	By:	/s/ Steven Kahn
	 	 	Name:	 Steven Kahn
	 	 	Title:	 Chief Financial Officer
	 	 	 	 
	 	NEW YORK CITY SCHOOL CONSTRUCTION AUTHORITY
	 	 	 	 
	 	By:	/s/ Ross Holden
	 	 	Name:	Ross Holden
	 	 	Title:	Executive Vice President & General CounselExhibit

EXHIBIT 10.11
EMPLOYMENT AGREEMENT
THIS AGREEMENT (the “Agreement”) is made and entered into on December 21, 2017 to be effective as of January 1, 2018 (the “Effective Date”), by and among ATLANTIC CAPITAL BANCSHARES, INC., a Georgia corporation (the “Holding Company”); ATLANTIC CAPITAL BANK, N.A., a wholly-owned banking subsidiary of the Holding Company (the “Bank”) (collectively, the “Employers”); and ANNETTE F. ROLLINS (“Executive”).
WITNESSETH:
WHEREAS, Employers have previously entered into an offer letter with Executive effective as of June 8, 2017 (the “Offer Letter”);
WHEREAS, the Boards of Directors (or the “Boards”) of Employers consider the establishment and maintenance of highly competent and skilled management personnel for the Bank and the Holding Company to be essential to protect and enhance their best interests, and are desirous of inducing Executive to remain in the employ of the Holding Company and the Bank, subject to the Agreement’s terms and conditions;
WHEREAS, Executive desires to remain employed by Employers, subject to the Agreement’s terms and conditions; and
WHEREAS, the parties agree that, from and after the Effective Date of this Agreement, the provisions of this Agreement shall supersede the terms of the Offer Letter and control with respect to the parties’ rights and obligations resulting from Executive’s employment with Employers.
NOW, THEREFORE, for and in consideration of the Agreement’s mutual covenants, and other good and valuable consideration (including benefits to which Executive is not otherwise entitled), the receipt and legal sufficiency of which are hereby acknowledged, the parties agree as follows:
1.Definitions.  In addition to other terms defined in the Agreement, the following terms used in this Agreement shall have the following meanings: 
(a)    “Base Salary” shall mean the annual base cash compensation (excluding Incentive Compensation as defined in Agreement paragraph 4(b) and other benefits) payable to Executive pursuant to Agreement paragraph 4(a).
(b)    “Change of Control” shall be deemed to have occurred:
(i)    Upon the consummation of any transaction in which any person, partnership, financial institution, corporation, other organization or group, acting alone or in concert, shall own, control, or hold the power to vote more than forty percent (40%) of the voting securities of the Bank or the Holding Company; provided, however, that “Change of Control” shall not include (A) the purchase by 

underwriters of voting securities of the Bank or the Holding Company pursuant to a bona fide underwritten public offering of such securities or (B) if the power to vote more than forty percent (40%) of the voting securities of the Bank or the Holding Company results from an acquisition by the Bank or the Holding Company, by any employee benefit plan (or related trust) sponsored or maintained by the Bank or the Holding Company or by any person, partnership, financial institution, corporation, other organization or group pursuant to a transaction that would not constitute a Change in Control under subsection (b)(ii) below;
(ii)    Upon the consummation of any transaction in which the outstanding voting securities of the Holding Company or the Bank, or substantially all of the assets of the Holding Company or the Bank, shall be sold or transferred to, or consolidated or merged with, another financial institution, corporation or other organization unless immediately following such transaction all or substantially all of the persons who were beneficial owners of the voting securities of the Holding Company own, directly or indirectly, no less than a majority of the outstanding voting shares of the parent or surviving corporation, in substantially the same proportion as their ownership of such voting securities immediately prior to such transaction; 
(iii)    If, within any rolling twelve-month period (beginning on or after the Effective Date) the persons who were directors of the Holding Company immediately before the beginning of such twelve-month period (the “Incumbent Directors”) shall cease to constitute at least a majority of the Board of Directors; provided that any director who was not a director as of the beginning of such twelve-month period shall be deemed to be an Incumbent Director if that director were elected to the Board of Directors by, or on the recommendation of or with the approval of, at least two-thirds (2/3) of the directors who then qualified as Incumbent Directors; and provided further that no director whose initial assumption of office is in connection with an actual or threatened election contest relating to the election of directors shall be deemed to be an Incumbent Director; or
(iv)    A complete liquidation or dissolution of the Holding Company or the Bank except pursuant to a transaction that would not constitute a Change in Control under subsection (b)(ii) above.  
(c)    “Code” shall mean the Internal Revenue Code of 1986, as amended, and the rules and regulations promulgated thereunder.
(d)    “Disability” shall mean a condition for which benefits would be payable to Executive under any long-term disability insurance coverage (without regard to the application of any elimination period requirement) then provided to Executive by Employers; or, if no such coverage is then being provided, the inability of Executive to perform the material aspects of Executive’s duties under this Agreement with or without reasonable accommodation for a period of at least ninety (90) substantially consecutive days, as determined by an independent physician selected by Employers with Executive’s consent, which consent shall not be unreasonably withheld.  

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(e)    “Event of Termination” shall mean (i) Executive’s termination of her employment under this Agreement for Good Reason or (ii) Employers’ termination of Executive’s employment under this Agreement for any reason other than (A) Termination for Cause, (B) termination following a Disability or (C) termination due to death.
(f)    “Good Reason” shall mean if, (x) during the term of Executive’s employment under this Agreement and (y) without Executive’s consent, the circumstances of Executive’s employment as provided in Agreement paragraphs 2, 3, 4, 5, and 6 of this Agreement have been materially and adversely altered by Employers, whether by: 
(i)    any material and adverse breach of this Agreement by Employers (including the failure of Employers to comply with the material provisions of Agreement paragraphs 2, 3, 4, and 5 of this Agreement but not including a reduction in Executive’s Base Salary in connection with a proportionate reduction in the base salaries of all other senior executives);
(ii)    any material and adverse change in the title, reporting relationship(s), authority, duties or responsibilities of Executive;
(iii)    any assignment of duties that are materially and adversely inconsistent with Executive’s position and duties described in this Agreement;
(iv)    the failure of Employers to assign this Agreement to a successor in interest or the failure of the successor in interest to explicitly assume and agree to be bound by this Agreement; or
(v)    the relocation of Executive to any principal place of employment other than at the Employers’ main office in Atlanta, Georgia, or at such other location within thirty (30) miles of the main office in Atlanta, Georgia, as Employers may from time to time designate, or any requirement of Employers that Executive relocate her residence outside the Atlanta-Sandy Springs-Roswell, Georgia Metropolitan Statistical Area; provided, however, that this subparagraph (v) shall not apply in the case of business travel which requires Executive to relocate temporarily for periods of ninety (90) days or less.  
Notwithstanding the foregoing, no event shall constitute Good Reason unless Executive notifies Employers’ Boards of Directors in writing regarding the existence of the condition(s) constituting Good Reason no later than thirty (30) days after Executive knows or should reasonably know of the condition(s), Employers do not cure said condition within thirty (30) days after their receipt of Executive’s written notice and, in the event Employers do not cure said condition, Executive terminates her employment within thirty (30) days after the period for curing said condition has expired.  
(g)    “Termination for Cause” shall have the meaning provided in Agreement paragraph 7(a).

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2.    Employment.  Employers agree to continue to employ Executive, and Executive agrees to continue to accept such employment, as Executive Vice President and Chief Human Resources Officer of the Bank and the Holding Company, for the period stated in Agreement paragraph 3(a) (unless earlier terminated as set forth in this Agreement) upon the terms and conditions set forth in this Agreement.  Executive agrees to perform faithfully such duties, responsibilities, and authorities as are customary for the Executive Vice President and Chief Human Resources Officer (as applicable) of businesses of similar size and businesses as Employers as they may exist from time to time and as are consistent with such positions and status and such other duties, positions, responsibilities and authorities as the Chief Executive Officer of Employers (the “Chief Executive Officer”) or Employers’ Boards of Directors may assign to her from time to time to the extent not materially and adversely inconsistent with Executive’s position as Executive Vice President and Chief Human Resources Officer or her duties described in this Agreement.  At all times, Executive shall manage and conduct the business of Employers in accordance with the policies of Employers’ and in compliance with applicable law, rules and regulations.  Executive shall report to the Chief Executive Officer or Employers’ Boards of Directors, and responsibility for the supervision of Executive shall rest with the Chief Executive Officer and the Boards of Directors of Employers, which shall review Executive’s performance at least annually.  The Chief Executive Officer or the Boards of Directors shall also have the authority to terminate Executive, subject to the provisions outlined in Agreement paragraphs 6 and 7.
3.    Term and Duties.
(a)    Term of Employment.  This Agreement and the period of Executive’s employment under this Agreement shall be deemed to have commenced as of the Effective Date and shall continue for a period of thirty-six (36) full calendar months (the “Employment Term”), unless earlier terminated pursuant to Agreement paragraphs 6 or 7.
(b)    Performance of Duties.  During the period of employment under this Agreement, except for periods of illness, disability, reasonable vacation periods, and reasonable leaves of absence, all subject to policies generally applicable to senior executives of the Holding Company or the Bank, Executive shall devote substantially all of her business time, attention, skill, and efforts to the faithful performance of her Agreement duties.  Executive shall be eligible to participate as a member in community, civic, religious, or similar organizations, and may pursue personal investments, which in either event, do not present any material conflict of interest with Employers (except with prior written approval by the Boards of Directors), or unfavorably affect the performance of Executive’s duties pursuant to this Agreement.  In addition and as applicable, Executive shall be entitled to serve as a member of the boards of directors/trustees of such other public and/or private companies or organizations as the Boards of Directors of Employers shall pre-approve in writing.
(c)    Office of Executive.  The office of Executive shall be located at the Bank’s main office in Atlanta, Georgia, or at such other location within thirty (30) miles of the main office in Atlanta, Georgia, as Employers may from time to time designate.

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(d)    No Other Agreement.  Executive shall have no employment contract or other written or oral agreement concerning employment with any organization, entity or person other than Employers during the term of her employment under this Agreement, except for such arrangements as the Boards of Directors of Employers shall pre-approve in writing.
(e)    Resignation from the Boards of Directors And Other Positions.  If Executive’s employment with Employers is terminated by Employers for any reason, or if Executive terminates employment with Employers for any reason, then Executive agrees that she shall, to the extent applicable, tender her resignation from the Boards of Directors of Employers and from any company affiliated with Employers for which Executive serves as a director or officer at the time of her employment termination or resignation.  The decision whether to accept such resignation shall be within the sole discretion of the Boards of Directors of Employers and any such affiliated company.
4.    Compensation.
(a)    Base Salary.  Subject to the provisions of Agreement paragraphs 6 and 7, Employers shall pay Executive, as compensation for serving as the Executive Vice President and Chief Human Resources Officer of Employers, an initial Base Salary of $275,000 per year (prorated for any partial year); such initial Base Salary, or any increased Base Salary, shall be payable in substantially equal installments in accordance with Employers’ normal pay practices, but not less frequently than monthly.  Executive’s Base Salary shall be reviewed and approved at least annually by Employers’ Boards of Directors or the Joint Compensation Committee of the Boards of Directors of Employers (the “Compensation Committee”).  The Boards of Directors or the Compensation Committee, if warranted in their sole discretion, may increase Executive’s Base Salary to reflect Executive’s performance.  The Boards of Directors or the Compensation Committee may not decrease Executive’s Base Salary unless all base salaries of other senior executives are decreased proportionately.  
(b)    Incentive Compensation.  Executive shall be eligible to participate in any short-term incentive plan (“STIP”) and long-term incentive plan (“LTIP”) (or, in each case, successor plans or arrangements) as may be established by Employers for senior executives at levels comparable to those offered to other comparable senior executives, with award opportunities established for each applicable performance period by the Boards or the Compensation Committee (respectively, “Short-Term Incentive Compensation” and “Long-Term Incentive Compensation” and together “Incentive Compensation”).  Threshold, target, superior and maximum corporate performance levels may be established by the Boards or the Compensation Committee for each performance period based on earnings growth, profitability, asset quality and/or other performance metrics as determined by the Boards or the Compensation Committee and shall be subject to the terms of the specific plan and award agreement (or other similar documentation).  Specific STIP and LTIP criteria may change from time to time.  Entitlement to and payment of Incentive Compensation is subject to the discretion and approval of the Boards or the Compensation Committee.  Any Short-Term Incentive Compensation shall be payable, in the discretion of 

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the Boards or the Compensation Committee, in cash or shares of Holding Company common stock (or a combination thereof) by no later than March 15 of the year following the calendar year in which the STIP award is earned, in accordance with Employers’ normal practices for the payment of Short-Term Incentive Compensation (or otherwise in a manner intended to be exempt from, or to comply with Code Section 409A). To be entitled to any payment of Short-Term Incentive Compensation from Employers, Executive must be employed by an Employer on the last day of the applicable performance period to which the Short-Term Incentive Compensation relates except as otherwise provided in Agreements paragraph 6 and 7 herein. Any Long-Term Incentive Compensation earned shall be payable, in the discretion of the Boards or the Compensation Committee, in cash or shares of Holding Company common stock (or a combination thereof) by no later than March 15 of the year immediately following the end of the applicable performance year period, in accordance with Employers’ normal practices for the payment of Long-Term Incentive Compensation (or otherwise in a manner intended to be exempt from, or comply with, Code Section 409A).  To be entitled to any payment of Long-Term Incentive Compensation from Employers, Executive must be employed by an Employer on the last day of the applicable performance period to which the Long-Term Incentive Compensation relates, except as otherwise provided in Agreements paragraphs 6 and 7 herein and subject to LTIP terms. 
(c)    Equity Awards.  Executive shall be eligible to participate in any stock option, restricted stock award, restricted stock unit or other equity incentive plans offered by Employers at a level comparable to that offered to other senior executives.  Any such equity awards shall be subject to the terms and conditions of the applicable stock plan and applicable award agreements and further subject to such terms and conditions as may be established by the Boards or the Compensation Committee.  
(d)    Reimbursement of Expenses.  Subject to Agreement paragraph 7(e), Employers shall pay or reimburse Executive for all reasonable travel and entertainment expenses incurred by Executive in the performance of her obligations and duties under this Agreement, as provided in Employers’ policies and procedures, and as Employers’ Boards of Directors have adopted or may adopt in the future.  In the event of Executive’s termination of employment pursuant to Agreement paragraph 6 or Agreement paragraph 7, Executive shall be entitled to reimbursement of reasonable unreimbursed expenses incurred by Executive prior to her termination of employment, subject to the terms of this Agreement paragraph 4(d) and Agreement paragraph 7(e).
5.    Participation in Benefit and Other Plans.
(a)    Incentive, Savings, Retirement and Other Plans; No Duplicate Benefits.  During the term of Executive’s employment under this Agreement, Executive shall be entitled to participate in all other incentive, stock option, stock appreciation right, restricted stock award, restricted stock unit, savings, and retirement plans, practices, policies, and programs applicable generally to senior executives of Employers, on a comparable basis as applicable to such other senior executives, and consistent with Executive’s positions with the Holding Company and the Bank, in accordance with and subject to the terms of such 

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plans, practices, policies and programs.  Notwithstanding the foregoing, Executive acknowledges and agrees that, in the event that she is a participant in Employers’ Change in Control Plan, 2017 Change in Control Plan, Severance Plan and/or similar plans or arrangements, she shall not be entitled to duplicate severance and/or change in control benefits under both this Agreement (including but not limited to benefits pursuant to Agreement paragraph 6 and/or Agreement paragraph 7) and such other plans and arrangements, and that any severance and/or change in control benefits she receives under this Agreement shall be in lieu of comparable benefits under such other plans or arrangements.
(b)    Health and Welfare Benefit Plans.  During the term of Executive’s employment under this Agreement, Executive and/or Executive’s family, as the case may be, shall be eligible for participation in and shall receive all benefits under any health and welfare benefit plans, practices, policies and programs provided by Employers, to the extent applicable generally to senior executives of Employers and subject to the terms, conditions, and eligibility requirements therefore as may be prescribed by Employers or set forth in the terms of such plans, practices, policies and programs from time to time.
(c)    Vacation and Sick Leave.  Executive shall be entitled, without loss of pay, to be voluntarily absent from work or the performance of her work duties under this Agreement as recited below, all voluntary absences to count as vacation time, provided that:
(i)    Executive shall be entitled to not less than four (4) weeks of annual paid vacation or the amount of vacation in accordance with the policies that the Boards of Directors of Employers periodically establish for senior management employees of Employers.
(ii)    Executive shall not receive any additional compensation from Employers on account of her failure to take a vacation, and Executive shall not accumulate or carryover unused vacation from one fiscal year to the next, except as authorized by Employers’ Boards of Directors.
(iii)    In addition to paid vacations under this Agreement, Executive shall be entitled, without loss of pay, to be voluntarily absent from work under this Agreement for such additional periods of time and for such valid and legitimate reasons as the Boards of Directors of Employers may in their discretion approve.  It is also provided that the Boards of Directors of Employers may grant to Executive a leave or leaves of absence, with or without pay, at such time or times and upon such terms and conditions as the Boards of Directors of Employers in their discretion determine.
(iv)    Executive shall be further entitled to an annual sick leave benefit as may be established by the Boards of Directors of Employers.
(v)    In the event of the termination of Executive’s employment pursuant to Agreement paragraph 6 or Agreement paragraph 7, Executive shall be entitled to 

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payment of accrued but unused vacation pay if and as determined in accordance with Employer’s plans and policies, payable on the same terms as earned but unpaid Base Salary as provided under the relevant provisions of Agreement paragraph 6 or Agreement paragraph 7, as applicable.  
6.    Benefits Payable Upon Termination due to Death or Disability.
(a)    Death Benefits.  Executive’s employment under this Agreement shall terminate automatically upon Executive’s death.  If Executive’s employment is terminated by reason of death, Employers shall pay Executive, or as applicable, her designated beneficiary or beneficiaries, or to her estate, as the case may be, any accrued but unpaid Base Salary through the date of termination of Executive’s employment (payable in accordance with Employers’ normal payroll practices), and any earned but unpaid Incentive Compensation for any prior period, pro rata and to the extent earned (payable on the schedule as provided in Agreement paragraph 4(b) above).  Any outstanding equity awards shall be subject to the terms and conditions of the applicable plan and applicable award agreement.  Executive shall have no right to any other compensation or benefits (except for vested benefits under any employee benefit plan in accordance with the terms of the plan and any right to continued health coverage under COBRA or similar state law) for any period after a termination on account of Executive’s death.  
(b)    Disability Benefits.  Following an event of Disability of Executive, Employers may terminate Executive’s employment.  In the event of Executive’s termination following a Disability, Employers shall pay Executive any accrued but unpaid Base Salary through the date of termination of Executive’s employment (payable in accordance with Employers’ normal payroll practices), and any earned but unpaid Incentive Compensation for any prior period, pro rata and to the extent earned (payable on the schedule as provided in Agreement paragraph 4(b) above).  In addition, subject to Executive’s compliance with the covenants contained in Agreement paragraph 9, Employers shall further pay Executive 100% of Executive’s then current Base Salary at the time of termination of employment for a period of twelve (12) months (payable in accordance with Employers’ normal payroll practices, without interest), commencing on the first normal payroll date that occurs on or after sixty (60) days following the date of termination of employment.  Any outstanding equity awards shall be subject to the terms and conditions of the applicable plan and applicable award agreement.  
(c)    Additional Disability Provisions; Offset.  In addition, Employers shall continue to provide Executive and Executive’s dependents who are qualified beneficiaries with health insurance coverage as if she were an active employee for a period not to exceed twelve (12) months until the earlier of the end of the twelve (12) month period following the date of Executive’s termination of employment following a Disability or the date on which Executive receives substantially comparable coverage and benefits under the group health plans of a subsequent employer.  Executive shall pay the entire premium charged for such coverage based on the COBRA rate for the level of coverage elected.  Employers shall reimburse Executive an amount equal to Employers’ portion of the health insurance 

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premiums then paid for active employees for the level of coverage elected by Executive (subject to the provisions of Agreement paragraph 7(e) herein).  Notwithstanding the preceding, any amounts payable under Agreement paragraph 6(b) shall be reduced by any amounts paid to Executive pursuant to Agreement paragraph 6(c) herein or under any other disability program or policy of insurance maintained by Employers.
7.    Payments to Executive Upon Other Termination of Employment.  The Boards of Directors of Employers may terminate Executive’s employment under this Agreement at any time and for any reason but any termination by Employers other than Termination for Cause shall not prejudice Executive’s right to compensation or other benefits under this Agreement.  Executive may voluntarily terminate her employment under this Agreement.  The rights and obligations of Employers and Executive in the event of employment termination (other than in connection with death or Disability) are set forth in this Agreement paragraph 7 as follows:
(a)    Termination for Cause.  Following Executive’s Termination for Cause, Employers shall pay Executive any accrued but unpaid Base Salary through the date of termination of Executive’s employment (payable in accordance with Employers’ normal payroll practices), and any earned but unpaid Incentive Compensation for any prior period, pro rata and to the extent earned (payable on the schedule as provided in Agreement paragraph 4(b) above).  Any outstanding equity awards shall be subject to the terms and conditions of the applicable plan and applicable award agreement.  Executive shall have no right to any other compensation or benefits (except for vested benefits under any employee benefit plan in accordance with the terms of the plan and any right to continued health coverage under COBRA or similar state law) for any period after a Termination for Cause.  For purposes of this Agreement, “Termination for Cause,” which shall be determined by Employers’ Boards of Directors in the reasonable exercise of their discretion and acting in good faith, is a termination of Executive’s employment as a result of Executive’s dishonesty; willful misconduct; incarceration for ten (10) or more days; breach of fiduciary duties; intentional failure to perform her job duties; willful violation of any law (other than minor traffic violations or less serious offenses) or a final cease-and-desist order; the regulatory suspension or removal of Executive as defined in Agreement paragraph 8; Executive’s failure or refusal to follow instructions of the Boards of Directors of Employers; or Executive’s material breach of the terms of this Agreement, which material breach of this Agreement is not cured (to the extent deemed curable by the Boards) by Executive within 10 calendar days after her receipt of Employers’ written notice thereof, including, without limitation, failure by Executive to perform Executive’s duties and responsibilities in the manner and to the extent required under this Agreement.  The termination of Executive’s employment shall not be a Termination for Cause unless and until there shall have been delivered to Executive a copy of a resolution duly adopted in good faith by the affirmative vote of not less than two-thirds of the membership of Employers’ Boards of Directors (other than Executive, if applicable) at a meeting of the Boards called and held for such purpose (after at least fifteen (15) days prior written notice of such meeting and Executive’s alleged improper conduct is communicated to Executive and Executive (together with Executive’s counsel) is given an opportunity to be heard before the Boards of Directors), finding that Executive is guilty of the conduct described as Termination for Cause and specifying in 

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detail the grounds for its decision, and further that the specified conduct remains uncured pursuant to the terms hereof or was not capable of cure.  Employers’ Boards of Directors, in their discretion, may place Executive on a paid leave of absence for all or any portion of the period of time from the delivery of the written notice described in this Agreement until the effective date of the Termination for Cause, or the date on which Executive returns to work from such paid leave of absence.
(b)    Event of Termination Without Change of Control.  Upon the occurrence of an Event of Termination (for clarity, termination other than for death, Disability or for Cause and other than in connection with a Change of Control as provided in Agreement paragraph 7(c)), Employers shall pay to Executive, or in the event of her subsequent death, to her designated beneficiary or beneficiaries, or to her estate, as the case may be, any accrued but unpaid Base Salary through the date of termination of Executive’s employment (payable in accordance with Employers’ normal payroll practices), and any unpaid Incentive Compensation for any prior period, pro rata and to the extent earned (payable on the schedule as described in Agreement paragraph 4(b) above).  Any outstanding equity awards shall be subject to the terms and conditions of the applicable plan and applicable award agreement.  In addition, if Executive faithfully and fully abides by all of the covenants contained in Agreement paragraph 9 and the release requirements described herein, Employers shall pay to Executive (or in the event of her death, to her designated beneficiary or beneficiaries or to her estate, as the case may be) as liquidated damages, in lieu of all other claims, (i) a severance payment equal to 2.0 times the sum of Executive’s (A) Base Salary and (B) target bonus under the STIP for the year of termination (the “Target Bonus”) with such severance payment to be paid in twelve (12) equal monthly installments (without interest) in accordance with Employers’ normal payroll practices commencing with the first normal payroll date that occurs on or after the sixtieth (60th) day of Executive’s termination of employment (such twelve (12)-month period commencing on the date of termination of employment, the “Severance Period”), as well as (ii) a pro rata Short-Term Incentive Compensation bonus and a pro rata Long-Term Incentive Compensation bonus (without interest), in each case, to the extent earned, for the performance period during which Executive’s termination of employment occurs, payable on March 1 of the year following the calendar year in which Executive’s termination of employment occurs (provided that in no event shall payments under this clause (ii) result in duplicate payments with respect to unpaid Incentive Compensation as described in the first sentence of this Agreement paragraph 7(b)).  In addition, Employers shall continue to provide Executive and Executive’s dependents who are qualified beneficiaries with health insurance coverage as if she were an active employee for a period not to exceed eighteen (18) months until the earlier of the end of the eighteen (18) month period following the date of said Event of Termination or the date on which Executive receives substantially comparable coverage and benefits under the group health plans of a subsequent employer.   Executive shall pay the entire premium charged for such coverage based on the COBRA rate for the level of coverage elected.  Employers shall reimburse Executive an amount equal to Employers’ portion of the health insurance premiums then paid for active employees for the level of coverage elected by Executive (subject to the provisions of Agreement paragraph 7(e) herein).    

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In return for the severance payments and benefits described in this Agreement paragraph 7(b), Executive shall agree to execute a full release and waiver acceptable to the Holding Company and the Bank (substantially similar to the Release and Waiver attached hereto as Exhibit “A” and made a part of this Agreement) of all known or unknown claims or causes of action Executive has, had, or may have against Employers, their affiliates and all of the officers, employees, directors and agents of Employers and their affiliates, except that such release shall not apply to (i) any rights of Executive to indemnification under Employers’ Articles of Incorporation or Bylaws or a written agreement or to directors’ and officers’ liability insurance coverage of Employers and its affiliates, (ii) any rights to the severance pay or benefits under this Agreement, (iii) any rights to vested tax-qualified retirement benefits, (iv) any Protected Rights and (v) any rights to continued group health coverage under COBRA or applicable state law.  The severance payments and reimbursements described in clause (i) above shall (to the extent provided herein) commence within the sixty (60)-day period described above following Executive’s termination of employment provided Executive has executed the release and the release has become irrevocable before then.  If the sixty (60)-day period described in the immediately preceding sentence begins in one calendar year and ends in a later calendar year, the severance payments and reimbursements, if any, shall commence in the later calendar year even if Executive executes the release and it becomes irrevocable in the earlier calendar year.  If Executive does not execute the release and the release does not become irrevocable before the sixtieth (60th) day after Executive’s termination of employment, Executive shall not receive the severance payments and reimbursements described in this Agreement paragraph 7(b). 
Executive acknowledges and agrees that if she is entitled to benefits under Agreement paragraph 7(b), she shall not be entitled to benefits under Agreement paragraph 7(c), and, similarly, if she is entitled to benefits under Agreement paragraph 7(c), she shall not be entitled to benefits under Agreement paragraph 7(b).
(c)    Event of Termination in Connection With a Change of Control.  If, during the term of Executive’s employment under this Agreement and within eighteen (18) months immediately following a Change of Control or within three (3) months immediately prior to such Change of Control, Executive’s employment with Employers under this Agreement is terminated by an Event of Termination (for clarity, termination other than for death, Disability, Cause or as provided in Agreement paragraph 7(b)), Employers shall pay to Executive, or in the event of her subsequent death, to her designated beneficiary or beneficiaries, or to her estate, as the case may be, any accrued but unpaid Base Salary through the date of termination of Executive’s employment (payable in accordance with Employers’ normal payroll practices), and any unpaid Incentive Compensation for any prior period, pro rata and to the extent earned (payable on the schedule as described in Agreement paragraph 4(b) above).  Any outstanding equity awards shall be subject to the terms and conditions of the applicable plan and applicable award agreement.  In addition, and if Executive faithfully and fully abides by all of the covenants contained in Agreement paragraph 9 and the release requirements described herein, Employers shall pay to Executive (or in the event of her death, to her designated beneficiary or beneficiaries, or to her estate, as the case may be) as liquidated damages, in lieu of all other claims, (i) a severance payment equal to 2.0 times 

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the sum of Executive’s (A) Base Salary plus (B) target bonus under the STIP for the year of termination (that is, Target Bonus), with such severance payment to be paid in twelve (12) equal monthly installments (without interest) in accordance with Employers’ regular payroll practices commencing with the first normal payroll date that occurs on or after the sixtieth (60th) date of Executive’s termination of employment, as well as (ii) a pro rata Short-Term Incentive Compensation bonus and a pro rata Long-Term Incentive Compensation bonus (without interest), in each case, to the extent earned, for the performance period during which Executive’s termination of employment occurs, payable on March 1 of the year following the calendar year in which Executive’s termination of employment occurs (provided that in no event shall payments under this clause (ii) result in duplicate payments with respect to unpaid Incentive Compensation as described in the first sentence of this Agreement paragraph 7(c)).  In addition, Employers shall continue to provide Executive and Executive’s dependents who are qualified beneficiaries with health insurance coverage as if she were an active employee for a period not to exceed eighteen (18) months until the earlier of the end of the (18) month period following the date of said Event of Termination or the date on which Executive receives substantially comparable coverage and benefits under the group health plans of a subsequent employer.  Executive shall pay the entire premium charged for such coverage based on the COBRA rate for the level of coverage elected.  Employers shall reimburse Executive an amount equal to Employers’ portion of the health insurance premiums then paid for active employees for the level of coverage elected by Executive (subject to the provisions of Agreement paragraph 7(e) herein).  
In return for the severance payments and benefits described in this Agreement paragraph 7(c), Executive shall agree to execute a full release and waiver acceptable to the Holding Company and the Bank (substantially similar to the Release and Waiver attached hereto as Exhibit “A” and made a part of this Agreement) of all known or unknown claims or causes of action Executive has, had, or may have against Employers, their affiliates and all of the officers, employees, directors and agents of Employers and their affiliates, except that such release shall not apply to (i) any rights of Executive to indemnification under Employers’ Articles of Incorporation or By-Laws or written agreement or to directors’ and officers’ liability insurance coverage of Employers and its affiliates, (ii) any rights to the severance pay or benefits under this Agreement, (iii) any rights to vested tax-qualified retirement benefits, (iv) any Protected Rights, and (v) any rights to continued group health coverage under COBRA or applicable state law.  The severance payments described in clause (i) above shall commence within the sixty (60)-day period described above following Executive’s termination of employment provided Executive has executed the release and the release has become irrevocable before then.  If the sixty (60)-day period described in the immediately preceding sentence begins in one calendar year and ends in a later calendar year, the severance payments and reimbursements, if any, shall commence in the later calendar year even if Executive executes the release and it becomes irrevocable in the earlier calendar year.  If Executive does not execute the release and the release does not become irrevocable before the sixtieth (60th) day after Executive’s termination of employment, Executive shall not receive the severance payment described in this Agreement paragraph 7(c).  

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(d)    Compliance with Protective Covenants.  Notwithstanding anything to the contrary in this Agreement, in the event Executive fails or ceases to fully abide by all of the covenants contained in Agreement paragraph 9, or in the event any court of competent jurisdiction or arbitrator deems any such covenant(s) to be invalid or unenforceable as the result of a challenge by Executive, then Executive acknowledges and agrees that such circumstances shall constitute a failure of consideration and Executive shall not be entitled to any severance payments and/or benefits pursuant to Agreement paragraphs 7(b) or 7(c).  If Executive has already received any such severance payments or benefits at the time she violates any such covenant or the covenants are deemed invalid as set forth in the preceding sentence, Executive acknowledges that Employers shall immediately be entitled to recover all such gross amounts in full from Executive.
(e)    Limits on Payments.  Executive and Employers intend for all payments under this Agreement to be either outside the scope of Code Section 409A or to comply with its requirements as to timing of payments.  Accordingly, to the extent applicable, it is the general intention of the parties that this Agreement shall, to the extent practicable, be operated in accordance with the requirements of Code Section 409A, as amended, and the regulations and rulings thereunder, including any applicable transition rules.  Without in any way limiting the foregoing, (i) in the event that Code Section 409A requires that any special terms, provision or conditions be included in this Agreement, then such terms, provisions, and conditions shall, to the extent practicable, be deemed to be made part of this Agreement, and (ii) terms used in this Agreement shall be construed in accordance with Code Section 409A if and to the extent required.  Employers shall have authority to take action, or refrain from taking any action, with respect to the payments and benefits under this Agreement that is reasonably necessary to comply with Code Section 409A.  Any payments that qualify for the “short-term deferral” exception or another exception under Code Section 409A shall be paid under the applicable exception.  For purposes of the limitations on nonqualified deferred compensation under Code Section 409A, each payment of compensation under this Agreement shall be treated as a separate payment of compensation for purposes of applying Code Section 409A.  Notwithstanding anything in this Agreement to the contrary, if any amounts or benefits payable under this Agreement in the event of Executive’s termination of employment constitute “nonqualified deferred compensation” within the meaning of Code Section 409A, payment of such amounts and benefits shall commence when Executive incurs a “separation from service” within the meaning of Treasury Regulation 1.409A-1(h), without regard to any of the optional provisions thereunder, from Employers and any entity that would be considered a single employer with Employers under Code Section 414(b) or 414(c) (as modified by the rules under Code Section 409A) (“Separation from Service”).  Such payments or benefits shall be provided in accordance with the timing provisions of this Agreement by substituting the Agreement’s references to “termination of employment” or “termination” with Separation from Service.  In addition, if at the time of Executive’s Separation from Service Executive is a “specified employee” within the meaning of Code Section 409A(a)(2)(B)(i), any amount or benefits that constitute “nonqualified deferred compensation” within the meaning of Code Section 409A that becomes payable to Executive on account of Executive’s Separation from Service shall not be paid until after the earlier of (i) the first (1st) business day of the seventh (7th) month following Executive’s Separation 

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from Service, or (ii) the date of Executive’s death (the “409A Suspension Period”) to the extent required to comply with Code Section 409A.  Within fourteen (14) calendar days after the end of the 409A Suspension Period, Executive shall be paid a cash lump sum payment equal to any payments (including interest on any such payments, at an interest rate of not less than the prime interest rate, as published in the Wall Street Journal, over the period such payment is restricted from being paid to Executive) and benefits that the Company would otherwise have been required to provide under this Agreement but for the imposition of the 409A Suspension Period delayed because of the preceding sentence.  Thereafter, Executive shall receive any remaining payments and benefits due under this Agreement in accordance with the terms of this Agreement paragraph 7(e) (as if there had not been any 409A Suspension Period beforehand).  To the extent not otherwise specified in this Agreement, all (A) reimbursements and (B) in-kind benefits provided under this Agreement shall be made or provided in accordance with the requirements of Code Section 409A, including, where applicable, the requirement that (1) any reimbursement is for expenses incurred during Executive’s lifetime (or during a shorter period of time specified in this Agreement); (2) the amount of expenses eligible for reimbursement, or in kind benefits provided, during a calendar year may not affect the expenses eligible for reimbursement, or in kind benefits to be provided, in any other calendar year; (3) the reimbursement of an eligible expense shall be made no later than the last day of the calendar year following the year in which the expense is incurred; and (4) the right to reimbursement or in kind benefits is not subject to liquidation or exchange for another benefit.  In the event that this Agreement shall be deemed not to be exempt from or to comply with Code Section 409A, then neither Employers, the Boards, the Committee nor its or their designees or agents shall be liable to Executive or other persons for actions, decisions or determinations made in good faith.  
If any of the payments or benefits received or to be received by Executive (including, without limitation, any payment or benefits received in connection with a Change of Control or Executive’s termination of employment, whether pursuant to the terms of this Agreement or any other plan, arrangement or agreement, or otherwise) (all such payments collectively referred to herein as the “280G Payments”) constitute “parachute payments” within the meaning of Code Section 280G and would, but for this subparagraph (e), be subject to the excise tax imposed under Code Section 4999 (the “Excise Tax”), then prior to making the 280G Payments, a calculation shall be made comparing (i) the net benefit to Executive of the 280G Payments after payment of the Excise Tax to (ii) the net benefit to Executive if the 280G Payments are limited to the extent necessary to avoid being subject to the Excise Tax.  Only if the amount calculated under (i) above is less than the amount under (ii) above shall the 280G Payments be reduced to the minimum extent necessary to ensure that no portion of the 280G Payments is subject to the Excise Tax.  Any reduction made pursuant to this subparagraph (e) shall be made in a manner determined by the Accounting Firm (as defined below) that maximizes Executive’s economic position and is consistent with the requirements of Code Section 409A.  All calculations and determinations under this subparagraph (e) shall be made by Employers’ regular independent accounting firm at the expense of Employers or, at the election and expense of Executive, another nationally recognized independent accounting firm (the “Accounting Firm”) acceptable to Employers.  Employers shall instruct the Accounting Firm to make all such calculations and 

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determinations in a manner that is in the best interests of Executive and maximizes Executive’s position.  For purposes of making the calculations and determinations required by this subparagraph (e), the Accounting Firm may rely on reasonable, good faith assumptions and approximations concerning the application of Code Section 280G and Code Section 4999.  Employers and Executive shall furnish the Accounting Firm with such information and documents as the Accounting Firm may reasonably request in order to make its calculations and determinations under this subparagraph (e).  All calculations and determinations by the Accounting Firm shall be binding upon Employers and Executive.  If any payments or benefits are reduced under this Agreement pursuant to this subparagraph (e), Executive shall pay all such assessed excise taxes, and any income taxes and additional excise taxes resulting solely from the payment of such excise taxes.
(f)    Voluntary Termination of Employment.  If Executive terminates her employment without Good Reason, then Employers shall pay to Executive, or in the event of her subsequent death, to her designated beneficiary or beneficiaries, or to her estate, as the case may be, any accrued but unpaid Base Salary through the date of termination of Executive’s employment (payable in accordance with Employers’ normal payroll practices), and any unpaid Incentive Compensation for any prior period, pro rata and to the extent earned (payable on the schedule as described in Agreement paragraph 4(b) above).  Any outstanding equity awards shall be subject to the terms and conditions of the applicable plan and applicable award agreement.
(g)    Additional Payments After Termination.  In the event that Executive’s employment is terminated under Agreement paragraphs 7(b) or (c), then Employers shall reimburse Executive an amount equal to the COBRA premium charged Executive for COBRA health continuation coverage for Executive and her eligible dependents for so long as Executive and her eligible dependents are entitled to receive COBRA continuation coverage from Employers under the applicable laws, rules and regulations governing COBRA.  For purposes of this Agreement paragraph 7(g) and Executive’s right to elect continued coverage under Employers’ group health plan under COBRA, in the case of a termination of Executive’s employment with Employers under Agreement paragraphs 7(b) or (c), Executive’s “qualifying event” (within the meaning of Code Section 4980B(0)(3)) shall be deemed to occur as of the date that Employers’ obligation to provide continued health coverage as if she were an active employee under Agreement paragraphs 7(b) or (c) ends.  To receive reimbursement under this Agreement paragraph 7(g), Executive must timely enroll in COBRA coverage.
8.    Compliance with Recoupment, Ownership and Other Policies or Agreements; Regulatory Limitations.   
(a)    Executive agrees and acknowledges that she is subject to certain forfeiture and recoupment (or “clawback”) restrictions, including but not limited to forfeiture and recoupment provisions if Executive, during employment or following termination of employment, engages in certain specified conduct, including but not limited to violation of policies of Employers or their subsidiaries, breach of non-solicitation, noncompetition, 

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confidentiality or other restrictive covenants, or other conduct by Executive that is determined by Employers to be detrimental to the business or reputation of Employers or any affiliate.  In addition, without limiting the effect of the foregoing, as a condition to receipt or retention of any benefits under this Agreement, Employers may, at any time, require that Executive agree to abide by any equity retention policy, stock ownership guidelines, compensation recovery policy and/or other policies that may be adopted by the Holding Company or the Bank or an affiliate thereof, each as in effect from time to time and to the extent applicable to Executive.  In addition, Executive acknowledges that she is subject to any such compensation recovery, recoupment, forfeiture or other similar provisions as may apply to Executive under applicable law.  
(b)    Without limiting the effect of the foregoing, the following shall apply: if Executive is suspended and/or temporarily prohibited from participating in the conduct of the affairs of the Bank by a notice served under Sections 8(e)(3) or (g)(1) of the Federal Deposit Insurance Act, 12 U.S.C. § 1818(e)(3) or (g)(1), the obligations of Employers under this Agreement shall be suspended as of the date of service of such notice, unless stayed by appropriate proceedings.  If the charges in the notice are dismissed, Employers, subject to any bar or prohibition arising from any applicable law or regulation, shall (i) pay Executive the compensation withheld while its contract obligations were suspended and (ii) reinstate in whole or in part any of its obligations which were suspended; provided, however, that Employers’ obligation to pay or reinstate as set forth herein shall not exceed one year of compensation or other obligations, shall be reduced by the amount of any compensation received by Executive from any source during the period of suspension, and shall be contingent upon faithful compliance by Executive with the Protective Covenants in Agreement paragraph 9 throughout such period of suspension.  Vested rights of Executive shall not otherwise be affected.
If Executive is removed and/or permanently prohibited from participating in the conduct of the affairs of the Bank by an order issued under Section 8(e)(4) or (g)(l) of the Federal Deposit Insurance Act, 12 U.S.C. § 1818(e)(4) or (g)(1), all obligations of Employers under this Agreement shall terminate as of the effective date of the order, but vested rights of the parties hereto shall not be affected.
9.    Protective Covenants.  Executive shall abide by and be bound by the following Protective Covenants:
(a)    Confidential Information and Trade Secrets.  During Executive’s employment, the parties acknowledge that Employers shall disclose, or have already disclosed, to Executive for use in Executive’s employment, and Executive shall be provided access to and otherwise shall make use of, acquire, create, or add to certain valuable, unique, proprietary, and secret information of Employers (whether tangible or intangible and whether or not electronically kept or stored), including financial statements, drawings, designs, manuals, business plans, processes, procedures, formulas, inventions, pricing policies, customer and prospect lists and contacts, contracts, sources and identity of vendors and contractors, financial information of customers of Employers, and other proprietary 

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documents, materials, or information indigenous to Employers, relating to their businesses and activities, or the manner in which Employers do business, which is valuable to Employers in conducting their business because the information is kept confidential and is not generally known to Employers’ competitors or to the general public (“Confidential Information”).  Confidential Information does not include information generally known or easily obtained from public sources or public records, unless Executive causes the Confidential Information to become generally known or easily obtained from public sources or public records.
To the extent that the Confidential Information rises to the level of a trade secret under applicable law, then Executive shall, during Executive’s employment and for so long as the Confidential Information remains a trade secret under applicable law (or for the maximum period of time otherwise allowed by applicable law) (i) protect and maintain the confidentiality of such trade secrets and (ii) refrain from disclosing, copying, or using any such trade secrets, without Employers’ prior written consent, except as necessary in Executive’s performance of Executive’s duties while employed with Employers.
To the extent that the Confidential Information defined above does not rise to the level of a trade secret under applicable law, Executive shall, during Executive’s employment and for a period of two years following any voluntary or involuntary termination of employment (whether by Employers or Executive), (i) protect and maintain the confidentiality of the Confidential Information and (ii) refrain from disclosing, copying, or using any Confidential Information without Employers’ prior written consent, except as necessary in Executive’s performance of Executive’s duties while employed with Employers.
(b)    Return of Property of Employers.  Upon any voluntary or involuntary termination of Executive’s employment (or at any time upon request of Employers), Executive agrees to immediately return to Employers all property of Employers (including, without limitation, all documents, electronic files, records, computer disks or other tangible or intangible things that may or may not relate to or otherwise comprise Confidential Information or trade secrets, as defined by applicable law) that Executive created, used, possessed or maintained while working for Employers from whatever source and whenever created, including all reproductions or excerpts thereof.  This provision does not apply to purely personal documents of Executive, but it does apply to business calendars, customer lists, contact information, computer programs, disks and their contents and like information that may contain some personal matters of Executive.  Executive acknowledges that title to all such property is vested in Employers.
(c)    Non-Diversion of Business Opportunity.  During Executive’s employment with Employers and consistent with Executive’s duties and fiduciary obligations to Employers, Executive shall (i) disclose to Employers any business opportunity that comes to Executive’s attention during Executive’s employment with Employers and that relates to the business of Employers or otherwise arises as a result of Executive’s employment with Employers and (ii) not take advantage of or otherwise divert any such opportunity for 

17

Executive’s own benefit or that of any other person or entity without prior written consent of Employers.
(d)    Non-Solicitation of Customers.  During Executive’s employment and for a period of twelve (12) months following any employment termination, Executive agrees not to, directly or indirectly, contact, solicit, divert, appropriate, or call upon, with the intent of doing business with, the customers or clients of Employers with whom Executive has had material contact (as such term is defined by Georgia’s Restrictive Covenants Act) during the last year of Executive’s employment with Employers, including prospects of Employers with whom Executive had such contact during said last year of Executive’s employment, if the purpose of such activity is either (i) to solicit such customers or clients or prospective customers or clients for a Competitive Business as herein defined (including, without limitation, any Competitive Business started by Executive) or (ii) to otherwise encourage any such customer or client to discontinue, reduce, or adversely alter the amount of its business with Employers.  Executive acknowledges that, due to Executive’s relationship with Employers, Executive shall develop, or has developed, special contacts and relationships with Employers’ clients and prospects, and that it would be unfair and harmful to Employers if Executive took advantage of these relationships.
A “Competitive Business”, as defined in this Agreement, is an enterprise that is in the business of offering banking products and/or services, which services and/or products are similar or substantially identical to those offered by Employers during Executive’s employment with Employers.
(e)    Non-Piracy of Employees.  During Executive’s employment and for a period of twelve (12) months following any termination, Executive covenants and agrees that Executive shall not, within the Territory, directly or indirectly: (i) solicit, recruit, or hire (or attempt to solicit, recruit, or hire) or otherwise assist anyone in soliciting, recruiting, or hiring, any employee or independent contractor (which shall not include non-exclusive outside vendors) of Employers who performed work for Employers within the last six (6) months of Executive’s employment with Employers or who was otherwise engaged or employed with Employers at the time of said termination of employment of Executive or (ii) otherwise encourage, solicit, or support any such employees or independent contractors to leave their employment or engagement with Employers, in either case until such employee or contractor has been terminated or separated from Employers for at least twelve (12) months.
(f)    Non-Compete.  During Executive’s employment and for a period of twelve (12) months following any employment termination, Executive agrees not to, directly or indirectly, compete with Employers, as an officer, director, member, principal, partner, shareholder (other than a shareholder in a company that is publicly traded and so long as such ownership is less than five percent (5%)), owner, manager, supervisor, administrator, employee, consultant, or independent contractor, by working in the Territory (as defined herein) for or as a “Competitive Business” (as defined above) in the Territory (as defined herein), in a capacity identical or substantially similar to the capacity in which Executive 

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served at Employers.  The “Territory” shall be defined as (i) the following counties in the State of Georgia: Barrow; Bartow; Butts; Carroll; Cherokee; Clayton; Cobb; Coweta; Dawson; DeKalb; Douglas; Fayette; Forsyth; Fulton; Gwinnett; Haralson; Heard; Henry; Jasper; Lamar; Meriwether; Newton; Paulding; Pickens; Pike; Rockdale; Spalding; and Walton, as well as (ii) the area within the city limits of Chattanooga, Tennessee, Knoxville, Tennessee and Charlotte, North Carolina as well as (iii) each county within which Chattanooga, Tennessee, Knoxville, Tennessee and Charlotte, North Carolina are located, as well as (iv) the counties (including those in adjacent states, if any) that are immediately contiguous to the counties referenced in subpart (iii), as well as (v) any counties of any state in which Employers, at the time of termination of Executive’s employment, are operating or providing services, or in which Employers have plans to solicit or engage in business, which plans are known to Executive during the term of Executive’s employment; provided, however, that the Territory described herein is a good faith estimate of the geographic area that is now applicable or that may be applicable at the termination of Executive’s employment as the areas in which Employers do or shall do business during the term of Executive’s employment, and Employers and Executive agree that this non-compete covenant shall ultimately be construed to cover only so much of such estimate as relates to the geographic areas in which Employers do business within the two-year period preceding termination of Executive’s employment.  
(g)    Acknowledgment.  It is understood and agreed by Executive that the parties have attempted to limit her right to compete only to the extent necessary to protect Employers from unfair competition and that the terms and provisions of this Agreement paragraph 9 are not intended to restrict Executive in the exercise of her skills or the use of knowledge or information that does not rise to the level of a trade secret under applicable law or Confidential Information of Employers (to which trade secrets and Confidential Information Executive has had and/or shall have access and has made and/or shall make use of during employment with Employers).  Therefore, in addition to any other remedies, Executive agrees that any violation of the covenants in this Agreement paragraph 9 shall result in the immediate forfeiture of any remaining payment that otherwise is or may become due under this Agreement if applicable.  Executive further agrees that should she breach any of the covenants contained in Agreement paragraph 9 of this Agreement, no further amounts shall be paid to Executive pursuant hereto and Executive shall repay to Employers any amounts previously received by Executive hereunder that are attributable to that portion of the payments paid for the period during which Executive was in breach of any of the covenants.  Employers and Executive agree that all remedies available to Employers or Executive, as applicable, shall be cumulative.
(h)    Protected Rights.  Notwithstanding anything in this Agreement to the contrary, (i) nothing in this Agreement, including but not limited to the release, or other agreement prohibits Executive from reporting possible violations of law or regulation to any governmental agency or entity, including but not limited to the Department of Justice, the Securities and Exchange Commission, the Congress and any agency Inspector General (the “Government Agencies”), or communicating with Government Agencies or otherwise participating in any investigation or proceedings that may be conducted by Government 

19

Agencies, including providing documents or other information; (ii) Executive does not need the prior authorization of Employers to take any action described in (i), and Executive is not required to notify Employers that she has taken any action described in (i); and (iii) neither this Agreement nor the release limits Executive’s right to receive an award for providing information relating to a possible securities law violation to the Securities and Exchange Commission. Further, notwithstanding the foregoing, Executive shall not be held criminally or civilly liable under any federal, state or local trade secret law for the disclosure of a trade secret that (x) is made (A) in confidence to a federal, state or local official, either directly or indirectly, or to an attorney; and (B) solely for the purpose of reporting or investigating a suspected violation or law; or (y) is made in a compliant or other document filed in a lawsuit or other proceeding, if such filing is made under seal. Additionally, an individual suing an employer for retaliation based on the reporting of a suspected violation of law may disclose a trade secret to her attorney and use the trade secret information in the court proceeding, so long as any document containing the trade secret is filed under seal and the individual does not disclose the trade secret except pursuant to court order. The rights described in this subparagraph (h) are referred to in this Agreement as the “Protected Rights.”
It is acknowledged that the purpose of these covenants and promises is (and that they are necessary) to protect Employers’ legitimate business interests, to protect Employers’ investment in the overall development of its business and the good will of its customers, and to protect and retain (and to prevent Executive from unfairly and to the detriment of Employers utilizing or taking advantage of) such business trade secrets and Confidential Information of Employers and those substantial contacts and relationships (including those with customers and employees of Employers) which Executive established due to her employment with Employers.
This Agreement is not intended to preclude Executive’s opportunity to engage in or otherwise pursue occupations in any unrelated or non-competitive field of endeavor, or to engage in or otherwise pursue directly competitive endeavors so long as they meet the requirements of this Agreement.  Executive represents that her experience and abilities are such that existence or enforcement of these covenants and promises shall not prevent Executive from earning or pursuing an adequate livelihood and shall not cause an undue burden to Executive or her family.
Executive acknowledges that these covenants and promises (and their respective time, geographic, and/or activity limitations) are reasonable and that said limitations are no greater than necessary to protect said legitimate business interests in light of Executive’s position with Employers and Employers’ business, and Executive agrees to strictly abide by the terms hereof.  If any provision of this Agreement is ruled invalid or unenforceable by a court of competent jurisdiction because of a conflict between the provision and any applicable law or public policy, the provision shall be redrawn to make the provision consistent with, and valid and enforceable under, the law or public policy.
10.    Source of Payments.  All payments provided in Agreement paragraphs 4, 6, and 7 shall be paid in cash (including, if applicable, by direct deposit through the Employers’ payroll procedures) from the general funds of Employers, or their successors in interest, as provided herein 

20

(except to the extent otherwise provided in the Agreement with respect to the grant and/or settlement of equity awards payable in shares of Holding Company common stock); and no special or separate fund shall be established by Employers, and no other segregation of assets shall be made to assure payment.  Executive shall have no right, title, or interest in or to any investments which Employers may make to meet its payment obligations.
11.    Injunctive Relief/Arbitration.  Employers or Executive shall have the right to apply to any court of competent jurisdiction sitting within the State of Georgia for injunctive relief with respect to the enforcement of the covenants and agreements set forth in Agreement paragraph 9.  For purposes of the preceding sentence, Employers and Executive agree to, and waive any objection to, personal jurisdiction in any state or federal court sitting in Georgia, and further agree that such courts shall be the sole and exclusive venue for any such court actions.  This remedy shall be in addition to, and not in limitation of, any other rights or remedies to which Employers or Executive are or may be entitled at law or in equity respecting this Agreement.  All other disputes or claims for relief arising from or related to this Agreement, Executive’s employment with Employers, or the termination of Executive’s employment with Employers, or as to arbitrability shall be brought and resolved in binding arbitration before the American Arbitration Association.  The arbitration shall be conducted under the AAA National Rules for the Resolution of Employment Disputes.  Employers and Executive agree that the arbitration shall be conducted in Atlanta, Georgia, and that Georgia law shall govern all issues, including but not limited to enforcement or enforceability of restrictive covenants.  Judgment upon any award rendered by the arbitrator may be challenged or entered only in the Superior Court of Fulton County, Georgia, or in the U.S. District Court for the Northern District of Georgia (Atlanta Division).
12.    Attorneys’ Fees.  In the event any party hereto is required to engage in legal action, whether before a court of competent jurisdiction or before the American Arbitration Association, against any other party hereto, either as plaintiff or defendant, in order to enforce or defend any of its or her rights under this Agreement, and such action results in a final judgment in favor of one or more parties, then the party or parties against whom said final judgment is obtained shall reimburse the prevailing party or parties for all legal fees and expenses incurred by the prevailing party or parties in asserting or defending its or her rights hereunder.  Furthermore, if following a Change of Control Executive must bring a claim to enforce Executive’s rights, and such claim results in payments to Executive, then whether or not reduced to a final judgment, Executive shall be reimbursed for reasonable legal fees incurred.  Any such reimbursements shall be made in accordance with Agreement paragraph 7(e).
13.    No Duty to Mitigate.  In no event shall Executive be obligated to seek other employment or take any other action by way of mitigation of the amounts payable to Executive under any provisions of this Agreement and, except as provided in Agreement paragraph 8 (and Agreement paragraphs 6(c), 7(b) and 7(c) regarding health insurance coverage), such amounts shall not be reduced regardless of whether Executive obtains other employment.
14.    Tax Matters.  Executive acknowledges that Employers shall deduct from any compensation payable to Executive or payable on her behalf under this Agreement all applicable federal, state, and local income and employment taxes and other taxes and withholdings required 

21

by law.  Executive acknowledges that Employers have made no representation or warranty regarding the tax consequences associated with the benefits described under this Agreement, that Executive agrees to pay any federal, state, and local taxes for which she may be personally liable as a result of the benefits conveyed under this Agreement, and that Employers have no obligation to achieve any certain tax result for Executive. 
15.    Effect of Prior Agreements.  This Agreement constitutes the entire agreement between the parties concerning the subject matter of this Agreement.  No oral statements or prior written material not specifically incorporated in this Agreement shall be of any force and effect, and no changes in or additions to this Agreement shall be recognized, unless incorporated in this Agreement by written amendment, such amendment to become effective on the date stipulated in it.  Executive acknowledges and represents that, in executing this Agreement, she did not rely, and has not relied, on any communications, promises, statements, inducements, or representation(s), oral or written, by Employers or any of its officers, directors, attorneys, agents, or representatives, except as expressly contained in this Agreement.  This Agreement supersedes any prior employment agreement and any contemporaneous oral agreement or understanding by or between Employers and Executive, including but not limited to the Offer Letter, which shall be of no force or effect as of the Effective Date of this Agreement, and Executive acknowledges and agrees that she shall have no further rights under the Offer Letter as of the Effective Date of this Agreement.
16.    General Provisions.
(a)    Nonassignability.  Neither this Agreement nor any right or interest hereunder shall be assignable by Executive, her beneficiaries or legal representatives, without the prior written consent of Employers; provided, however, that nothing in this Agreement paragraph 16(a) shall preclude (i) Executive from designating a beneficiary to receive any benefits payable hereunder upon her death, or (ii) the executors, administrators, or other legal representatives of Executive or her estate from assigning any rights hereunder to the person or persons entitled thereto.  Employers may assign this Agreement without the consent of Executive.
(b)    No Attachment.  Except as required by law, no right to receive payments under this Agreement shall be subject to anticipation, commutation, alienation, sale, assignment, encumbrance, charge, pledge, or hypothecation, or to execution, attachment, levy, and any attempt, voluntary or involuntary, to effect any such action shall be null, void, and of no effect.
(c)    Binding Agreement.  This Agreement shall be binding upon, and inure to the benefit of, Employers and Executive and their respective heirs, successors, assigns, and legal representatives.
(d)    No Bar.  Executive acknowledges and agrees that the existence of any claim or cause of action against Employers shall not constitute a defense to the enforcement by Employers of Executive’s covenants, obligations, or undertakings in this Agreement.

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(e)    No Conflicting Obligations.  Executive hereby acknowledges and represents that her execution of this Agreement and performance of employment-related obligations and duties for Employers shall not cause any breach, default, or violation of any other employment, nondisclosure, confidentiality, non-competition, or other agreement to which Executive may be a party or otherwise bound.
Moreover, Executive hereby agrees that she shall not use in the performance of such employment-related obligations and duties for Employers or otherwise disclose to Employers any trade secrets or confidential information of any person or entity (including any former employer) if and to the extent that such use or disclosure may cause a breach or violation of any obligation or duty owed to such employer, person, or entity under any agreement or applicable law.
17.    Modification and Waiver.
(a)    Amendment of Agreement.  Subject to Agreement paragraph 18 below, this Agreement may not be modified or amended except by an instrument in writing, signed by the parties hereto, and which specifically refers to this Agreement.
(b)    Waiver.  No term or condition of this Agreement shall be deemed to have been waived, nor shall there be any estoppel against the enforcement of any provision of this Agreement, except by written instrument of the party charged with such waiver or estoppel.  No such written waiver shall be deemed a continuing waiver unless specifically stated therein, and each waiver shall operate only as to the specific term or condition waived and shall not constitute a waiver of such term or condition for the future or as to any act other than that specifically waived.
18.    Severability.  If for any reason any provision of this Agreement is held invalid, the parties agree that the court or arbitrator shall modify the provision(s) (or subpart(s) thereof) to make the provision(s) (or subpart(s) thereof) and this Agreement valid and enforceable to the fullest extent permitted by applicable law.  Any invalid provision shall not affect any other provision of this Agreement not held invalid, and each such other provision shall to the full extent consistent with law continue in full force and effect.  If any provision of this Agreement shall be held invalid in part, such invalidity shall in no way affect the rest of such provision not held so invalid, and the rest of such provision, together with all other provisions of this Agreement, shall to the full extent consistent with law continue in full force and effect.
19.    Headings.  The headings of the Agreement paragraphs are included solely for convenience of reference and shall not control the meaning or interpretation of any of the provisions of this Agreement.
20.    Governing Law; Venue.  This Agreement has been executed and delivered in the State of Georgia, and its validity, interpretation, performance, and enforcement shall be governed by the laws of the State of Georgia.  Employers and Executive further agree to, and waive any objection to, personal jurisdiction in any state or federal court sitting in Georgia, and further agree that such courts shall be the sole and exclusive venue for any court actions.  

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21.    Rights of Third Parties.  Nothing herein expressed or implied is intended to or shall be construed to confer upon or give to any person, firm or other entity, other than the parties hereto and their permitted assigns, any rights or remedies under or by reason of this Agreement.
22.    Non-Disparagement.  During the Employment Term, and thereafter, Executive shall not make any disparaging remarks, or any remarks that could reasonably be construed as disparaging, regarding Employers, their subsidiaries, or the officers, directors, employees, stockholders, representatives or agents of the foregoing.  Employers shall, except to the extent otherwise required by applicable laws, rules or regulations or as appropriate in the exercise of the Boards’ fiduciary duties (as determined by the Boards with advice of counsel), exercise reasonable efforts to cause the following individuals to refrain from making any disparaging statements, orally or in writing, regarding Executive from and after the termination of the Employment Term: Employers’ executive officers and members of the Boards.
23.    Notices.  All notices, requests, demands, and other communications provided for by this Agreement shall be in writing and shall be sufficiently given if and when mailed in the United States by registered or certified mail, or personally delivered, to the party entitled thereto at the address stated below or to such changed address as the addressee may have given by a similar notice:
	
		
	To Employers:
	Chairman
Board of Directors
Atlantic Capital Bank
3280 Peachtree Road
Suite 1600
Atlanta, Georgia 30326

	Copied to
Employers’ counsel:
	Steven S. Dunlevie, Esq.
Womble Bond Dickinson (US) LLP
271 17th Street, N.W.
Suite 2400
Atlanta, Georgia 30363

	To Executive:
	Annette F. Rollins
3464 Roxboro Road NE
Unit 1210
Atlanta, Georgia 30326

Any notice to Employers is ineffective if not also sufficiently given to its counsel.
24.    No Limitation of Rights.  Nothing in this Agreement shall limit or prejudice any rights of Employers under any other laws.  
25.    Counterparts.  This Agreement may be signed in any number of counterparts, including via facsimile transmission, each of which shall be an original, with the same effect as if the signatures thereto and hereto were upon the same instrument.
26.    Certain Interpretative Matters.  No provision of this Agreement will be interpreted in favor of, or against, any of the parties hereto by reason of the extent to which any such party or 

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her or its counsel participated in the drafting thereof or by reason of the extent to which any such provision is inconsistent with any prior draft hereof or thereof.
[Signatures on next page]

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IN WITNESS WHEREOF, the Holding Company and the Bank have caused this Agreement to be executed and their seals to be affixed hereunto by their duly authorized officers, and Executive has signed this Agreement, as of the date set forth above to be effective as of the Effective Date set forth above.
ATTEST:                    ATLANTIC CAPITAL BANCSHARES, INC.

/s/ Brenda Bedsole            By:    /s/ Douglas L. Williams
(Assistant) Secretary                Name:    Douglas L. Williams
Title:    Chief Executive Officer
(CORPORATE SEAL)
        

ATTEST:                    ATLANTIC CAPITAL BANK

/s/ Brenda Bedsole            By:    /s/ Douglas L. Williams
(Assistant) Secretary                Name:    Douglas L. Williams
Title:    Chief Executive Officer
(BANK SEAL)

/s/ Anne Markette                /s/ Annette F. Rollins
Witness                    ANNETTE F. ROLLINS

EXHIBIT A
RELEASE
In exchange for certain termination payments, benefits and promises set forth in that certain Employment Agreement by and among Atlantic Capital Bank, N.A., Atlantic Capital Bancshares, Inc. and Annette F. Rollins (the “Executive”), dated December 21, 2017 (the “Employment Agreement”), certain of which Executive would not otherwise be entitled, Executive, knowingly and voluntarily releases Atlantic Capital Bancshares, Inc. and Atlantic Capital Bank, N.A., their respective subsidiaries, affiliates or related corporations, together with their officers, directors, agents, employees and representatives (collectively, the “Employer”), of and from any and all claims, demands, obligations, liabilities and causes of action, of whatsoever kind in law or equity, whether known or unknown, which Executive has, may have or ever had against Employer based upon any acts, omissions or events occurring on or before the date of the execution of this Release, including but not limited to claims in common law, whether in contract or in tort, or in equity, including claims of equitable or promissory estoppel, and causes of action under the Age Discrimination in Employment Act, 29 U.S.C. Sections 621 et seq., Title VII of the Civil Rights Act of 1964, 42 U.S.C. Sections 2000e et seq., the Employee Retirement Income Security Act, 29 U.S.C. Sections 1001 et seq., the Americans with Disabilities Act, 29 U.S.C. Section 12101 et seq., and all other federal, state or local laws, ordinances or regulations, for any losses, injuries or damages (including compensatory or punitive damages), attorney’s fees and costs arising out of employment or termination from employment with Employer. Notwithstanding the foregoing, Executive does not waive or release Employer from any claims, demands, obligations, liabilities or causes of action that may hereafter arise as the result of the breach by Employer of its obligations under the Employment Agreement.
Executive acknowledges that she received this Release on the date of termination.  Executive acknowledges that she has had a period of twenty-one (21) days from the date of receipt of this Release to consider it. Executive acknowledges that she has been given the opportunity to consult an attorney prior to executing this Release. This Release shall not become effective or enforceable until seven (7) days following its execution by Executive. Prior to the expiration of the seven (7) day period, Executive may revoke Executive’s consent to this Release.
Executive acknowledges by executing this Release that Executive has returned to Employer all Employer property in Executive’s possession.
Executive acknowledges that the discussions and negotiations relating to Executive’s termination, the Employment Agreement and this Release are confidential and, unless otherwise required by law or for the purposes of enforcing this Release or when needed to consult with Executive’s immediate family or tax or legal advisors, neither Executive nor Executive’s agents shall divulge, publish or publicize any such confidential information to any third parties or the media, or to any current or former employee, customer or client of Employer or its businesses or any of its affiliates.
Notwithstanding anything in this Release to the contrary, (a) nothing in this Release, the Employment Agreement or other agreement prohibits Executive from reporting possible violations 

of law or regulation to any governmental agency or entity, including but not limited to the Department of Justice, the Securities and Exchange Commission, the Congress and any agency Inspector General (the “Government Agencies”), or communicating with Government Agencies or otherwise participating in any investigation or proceedings that may be conducted by Government Agencies, including providing documents or other information; (b) Executive does not need the prior authorization of Employer to take any action described in (a), and Executive is not required to notify Employer that she has taken any action described in (a); and (c) neither this Release nor the Employment Agreement limits Executive’s right to receive an award for providing information relating to a possible securities law violation to the Securities and Exchange Commission. Further, notwithstanding the foregoing, Executive shall not be held criminally or civilly liable under any federal, state or local trade secret law for the disclosure of a trade secret that (x) is made (i) in confidence to a federal, state or local official, either directly or indirectly, or to an attorney; and (ii) solely for the purpose of reporting or investigating a suspected violation or law; or (y) is made in a compliant or other document filed in a lawsuit or other proceeding, if such filing is made under seal. Additionally, an individual suing an employer for retaliation based on the reporting of a suspected violation of law may disclose a trade secret to her attorney and use the trade secret information in the court proceeding, so long as any document containing the trade secret is filed under seal and the individual does not disclose the trade secret except pursuant to court order.
EXECUTIVE ACKNOWLEDGES SHE FULLY UNDERSTANDS THE CONTENTS OF THIS RELEASE AND EXECUTES IT FREELY AND VOLUNTARILY, WITHOUT DURESS, COERCION OR UNDUE INFLUENCE.

Signed:                             Date:                
Executive

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