Document:

Unassociated Document

    CONTRIBUTION
AGREEMENT

     

    This
Contribution Agreement (this “Agreement”) is
entered into as of June ___, 2010, and effective as of April 1, 2010, by and
among LIGHTSTONE HOLDINGS, LLC, a Delaware limited liability company (the “Company”) and
LIGHTSTONE VALUE PLUS REIT II LP, a Delaware limited partnership (the “REIT
OP”).

     

    W
I T N E S S E T H :

     

    WHEREAS, David Lichtenstein (“Lichtenstein”) is the
sole member and managing member of the Company owning a 100% membership interest
in the Company;

     

    WHEREAS, Lichtenstein is the chief
executive officer of Lightstone Value Plus Real Estate Investment Trust II,
Inc., a Maryland corporation (the “REIT”), the general partner of REIT
OP;

     

    WHEREAS, the Company owns a 50.5%
membership interest in Brownmill LLC, a New Jersey limited liability company,
the owner (“Owner”) of those
certain properties known as Browntown Shopping Center located in Old Bridge, New
Jersey and Millburn Mall located in Union, New Jersey (the “Properties”);

     

    WHEREAS,
Lichtenstein, REIT OP and Lightstone SLP II LLC (“Lightstone SLP”)
entered into that certain Third Amended and Restated Agreement, dated as of
January, 30, 2010, in which Lichtenstein is required on a semi-annual basis to
fund the purchase of subordinated profits interests in the REIT OP with (i) cash
or (ii) contributions of interests in real property of equivalent value (“Lichtenstein Funding
Requirement”);

     

    WHEREAS, Lichtenstein, as the managing
member of the Company, desires to satisfy the Lichtenstein Funding Requirement
and directs the Company to contribute to the REIT OP 51.98% (equaling to 26.25%
interest) in the Owner;

     

    WHEREAS,
as consideration for the Contributed Interest in the Owner, the REIT OP shall
contribute to Lightstone SLP operating partnership units in the REIT OP worth
[$2,500,000.00] (the “Contribution
Amount”).

     

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

     

    1. Contribution of the
Contribution Amount.  As of the date hereof, the REIT OP hereby
contributes the Contribution Amount to Lightstone SLP in exchange for the
contribution of the Contributed Interest in the Owner by the Company to the REIT
OP.  The contribution of the Contribution Amount shall be deemed a
$2,500,000.00 capital contribution by the REIT OP to Lightstone SLP in exchange
for 51.98% (equaling to 26.25% interest) in the Owner and shall be credited as
such to a capital account established for the REIT OP on the books of Lightstone
SLP.

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    2. Representations and
Warranties of the REIT.  The REIT represents and warrants to
the Company that:

     

    (a) The REIT
is a corporation duly incorporated, validly existing and in good standing under
the laws of the State of Maryland and has all requisite corporate power and all
material governmental licenses, authorizations, permits, consents and approvals
required to carry on its business.

     

    (b) The
execution, delivery and performance by the REIT of this Agreement, and the
consummation of the transactions contemplated hereby, are within the corporate
powers of the REIT and have been duly authorized by all necessary corporate
action on the part of the REIT.  This Agreement constitutes the valid
and binding agreement of the REIT.

     

    (c) The
execution, delivery and performance by the REIT of this Agreement, and the
consummation of the transactions contemplated hereby, do not (i) violate the
articles of incorporation or bylaws of the REIT; or (ii) contravene or conflict
with, or constitute a violation of, any material applicable law in any material
respect.

     

    
    

    (d) The
Contribution Amount is being contributed to the Company free and clear of any
and all liens, charges and security interests.

     

    3. Representations and
Warranties of the Company.  The Company represents and warrants
to the REIT that:

     

    (a) The
Company has been duly formed as a limited Company and is validly existing and in
good standing under the laws of the State of Delaware and has all requisite
power and authority and all material governmental licenses, authorizations,
permits, consents and approvals required to carry on its business.

     

    (b) The
execution, delivery and performance by the Company of this Agreement, and the
consummation of the transactions contemplated hereby, are within its powers and
authority and have been duly authorized by all necessary limited partnership
action.  This Agreement constitutes the valid and binding agreement of
the Company.

     

    (c) The
execution, delivery and performance by the Company of this Agreement, and the
consummation of the transactions contemplated hereby, do not (i) violate the
organizational documents of the Company; or (ii) contravene or conflict with, or
constitute a violation of, any material applicable law in any material
respect.

     

    (d) The
26.25% membership interest in the Owner to be received by the REIT OP will upon
issuance be duly issued, non-assignable and free of liens, charges and security
interests (other than any existing under the limited liability company agreement
of the Owner).

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    (e) To the
best of its knowledge and other than the existing first mortgage with
Countrywide Commercial Real Estate Finance, Inc., and its successors and
assigns, the Properties are free and clear of any and all liens, security interests, encumbrances, adverse
claims, suits or proceedings at law or in equity,.

    

    4. General
Provisions.

     

    (a) Further
Assurances.  Each party to this Agreement, at any time and from
time to time upon the reasonable request of another party to this Agreement,
shall promptly execute and deliver, or cause to be executed and delivered, all
such further instruments and take all such further actions as may be reasonably
necessary or appropriate to confirm or carry out the purposes and intent of this
Agreement.

     

    (b) Assignment.  Neither
this Agreement nor any of the rights or obligations hereunder shall be assigned
by any party hereto without the prior written consent of the other
parties.  Subject to the preceding sentence, this Agreement will be
binding upon, inure to the benefit of and be enforceable by the parties and
their respective successors and permitted assigns.

     

    (c) Governing
Law.  This Agreement shall be governed by and construed and
interpreted in accordance with the substantive laws of the State of New York,
without giving effect to any choice of law or conflicts of law provision or rule
that would cause the application of the laws of a jurisdiction other than New
York.

     

    (d) Severability.  The
provisions of this Agreement shall be deemed severable and the invalidity or
unenforceability of any provision shall not affect the validity or
enforceability of the other provisions hereof.  If any provision of
this Agreement, or the application thereof to any person or entity or any
circumstance, is found to be invalid or unenforceable in any jurisdiction, (i) a
suitable and equitable provision shall be substituted therefor in order to carry
out, so far as may be valid and enforceable, the intent and purpose of such
invalid or unenforceable provision and (ii) the remainder of this Agreement and
the application of such provision to other persons, entities or circumstances
shall not be affected by such invalidity or unenforceability, nor shall such
invalidity or unenforceability affect the validity or enforceability of such
provision, or the application thereof, in any other jurisdiction.

     

    (e) Counterparts.  This
Agreement may be executed (including by facsimile transmission) with counterpart
pages or in one or more counterparts, each of which shall be deemed an original
and all of which shall, taken together, be considered one and the same
agreement, it being understood that both parties need not sign the same
counterpart.

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    (f) Amendment;
Waiver.  No provision of this Agreement may be amended unless
such amendment is approved in writing by the parties hereto.  No
provision of this Agreement may be waived unless such waiver is in writing and
signed by the party against whom the waiver is to be effective.

     

    [SIGNATURE
PAGE FOLLOWS]

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    IN
WITNESS WHEREOF, the parties hereto have cause this Agreement to be executed as
of the day and year first above written.

     

    
      
        	 	LIGHTSTONE
      VALUE PLUS REIT II LP	 
	 	 	 	 
	 	      
                By:

              	      
                LIGHTSTONE
      VALUE PLUS REAL ESTATE INVESTMENT TRUST II, INC., a Maryland corporation,
      its General Partner

              	 
	 	 	 	 
	 	 	 	 
	
              	
                By:
      

              	 	 
	 	 	Name:
      David Lichtenstein	 
	 	 	Title: Chief
      Executive Officer	 
	 	 	 	 

      

    

    
      
        	 	LIGHTSTONE
      HOLDINGS, LLC, a Delaware limited liability company	 
	 	 	 	 
	
              	
                By:
      

              	 	 
	 	 	Name:
      David Lichtenstein 	 
	 	 	Title:
      Managing MemberUnassociated Document

    ASSIGNMENT
OF MEMBERSHIP INTEREST

     

    ASSIGNMENT OF MEMBERSHIP INTEREST
dated as of June 30, 2010, (the “Assignment”) made by
LIGHTSTONE HOLDINGS,
LLC, a Delaware limited partnership (the “Assignor”) to LIGHTSTONE VALUE PLUS REIT II
LP, a Delaware limited partnership (the “Assignee”).

     

    RECITALS

     

    (1) WHEREAS,
Assignor owns a 50.5% membership interest (“Membership Interest”)
in BROWNMILL LLC, a New Jersey limited liability company (“Brownmill”).

     

    (2) WHEREAS,
Assignor and Assignee desire to enter into this Assignment whereby Assignor will
transfer the Assigned Membership Interest (as defined below) of its Membership
Interest to Assignee.

     

    (3) WHEREAS,
the Assignor is the legal and beneficial owner of a the Assigned Membership
Interest existing under and evidenced by that certain First Amended and Restated
Operating Agreement of Brownmill, dated as of September 27, 2005 (as it may be
amended, supplemented or otherwise modified from time to time in accordance with
its terms, the “Operating
Agreement”).

     

    NOW
THEREFORE, in consideration of the premises and of the mutual covenants and
agreements contained herein, the parties hereto agree as follows:

     

    
    

    Section
1. Assignment and Acceptance of
Assigned Membership Interest.  As of the Effective Date (as
defined in Section 10), the Assignor hereby sells, transfers, conveys and
assigns (without recourse and, except as set forth herein, representation or
warranty) (collectively, the “Assignment”) to the
Assignee 51.98% of its Membership Interest (equaling to 26.25% interest in
Brownmill) of the Assignor’s right, title and interest in and to the Membership
Interest and of its right under the Operating Agreement, including, without
limitation, all its (a) rights to receive moneys due and to become due under or
pursuant to the Operating Agreement, (b) rights to receive proceeds of any
insurance, indemnity, warranty or guaranty with respect to the Operating
Agreement, (c) claims for damages arising out of or for breach of or default
under the Operating Agreement, and (d) rights to perform thereunder and to
compel performance, and otherwise exercise all rights and remedies
thereunder.  The percentage interest of the Assignor’s right, title
and interest in the Membership Interest and of the Assignor’s rights under the
Operating Agreement that are being assigned to the Assignee pursuant to this
Agreement are hereinafter referred to as the “Assigned Membership
Interest”.  The Assignee, upon the execution of this
Assignment, hereby accepts from the Assignor the Assigned Membership Interest
and agrees to become a successor member in Brownmill in the place and stead of
the Assignor to the extent of the Assigned Membership Interest and to be bound
by the terms and provisions of the Operating Agreement.

     

    Section
2. Capital
Account.  On or prior to the Effective Date, all profits and
losses, and all other items of income, gain, loss deduction or credit, allocable
to the Assigned Membership Interest shall be credited or charged, as the case
may be, to the Assignee and the Assignee shall be entitled to the portion of all
distributions, payments or other allocations payable in respect of the Assigned
Membership Interest, regardless of the source of such distributions, payments or
other allocations or the date on which they were earned.

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    Section
3. Representations and
Warranties of the Assignor.  The Assignor represents to
Assignee as of the Effective Date, that:

     

    (a) This
Assignment has been duly executed and delivered by the Assignor and is a valid
and binding obligation of the Assignor, enforceable in accordance with its
terms; and

     

    (b) The
Assignor is the sole owner of the Assigned Membership Interest free and clear of
any liens, and the Assignee, upon consummation of the Assignment hereunder,
shall acquire good title to the Assigned Membership Interest.

     

    Section
4. Covenants of the
Assignor.  Assignor agrees that (i) Assignor shall not assert
that the Assignment is invalid, ineffective or void on the basis that the
Assignment conflicts with or violates any provision of the Operating Agreement
and (ii) anything in the Operating Agreement to the contrary notwithstanding,
Assignor shall impose no condition on Assignee’s admission as a member of
Brownmill.

     

    Section
5. Filings.  On
or as soon as practicable after the Effective Date, the Assignee shall file and
record or cause to be filed and recorded with all proper offices or agencies all
documents and instruments required to effect the terms herein, if any,
including, without limitation, (a) this Assignment and (b) any limited liability
company and assumed or fictitious name certificate or certificates and any
amendments thereto.

     

    Section
6. Future
Assurances.  Each of the Assignor and the Assignee mutually
agrees to cooperate at all times from and after the date hereof with respect to
any of the matters described herein, and to execute such further deeds, bills of
sale, assignments, releases, assumptions, notifications or other documents as
may be reasonably requested for the purpose of giving effect to, evidencing or
giving notice of the assignment evidenced hereby.

     

    Section
7. Successors and
Assigns.  This Assignment shall be binding upon, and shall
inure to the benefit of, the parties hereto and their respective successors and
assigns.

     

    Section
8. Modification and
Waiver.  To the fullest extent permitted by law, no supplement,
modification, waiver or termination of this Assignment or any provisions hereof
shall be binding unless executed in writing by all parties hereto.

     

    Section
9. Counterparts.  Any
number of counterparts of this Assignment may be executed.  Each
counterpart will be deemed to be an original instrument and all counterparts
taken together will constitute one agreement.  Delivery of an executed
counterpart of a signature page to this Assignment by telecopier shall be as
effective as delivery of a manually executed counterpart of this
Assignment.

     

    
      
         

      

      
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    Section
10. Execution:  Effective
Date.  This Assignment will be binding and effective and will
result in the assignment of the Assigned Membership Interest on the date first
written above (the “Effective
Date”).

     

    Section
11. Governing
Law.  This Assignment will be governed by the laws of the State
of Delaware.

     

    [SIGNATURE
PAGES FOLLOW]

     

    
      
         

      

      
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    IN
WITNESS WHEREOF, the undersigned parties have duly executed and delivered this
Agreement as of the day and year first written above.

     

    
      
        	 	ASSIGNOR:	 
	 	 	 	 
	 	 	      
                LIGHTSTONE
      HOLDINGS, LLC, a Delaware limited liability company

              	 
	 	 	 	 
	
              	
                By:
      

              	 	 
	 	 	      
                Name:
      David Lichtenstein

              	 
	 	 	      
                Title:
      Managing Member

              	 
	 	 	 	 

      

       

      
        	 	      
                ASSIGNEE:

              	 
	 	 	 	 
	 	 	      
                      
                  LIGHTSTONE
      VALUE PLUS REIT II LP

                

              	 
	 	 	 	 
	 	      
                By:

              	      
                LIGHTSTONE
      VALUE PLUS REAL ESTATE INVESTMENT TRUST II, INC., a Maryland corporation,
      its General Partner

              	 
	 	 	 	 
	
              	
                By:
      

              	 	 
	 	 	      
                Name:
      Donna Brandin

              	 
	 	 	      
                Title:
      Chief Financial Officer

              	 
	 	 	 	 

      

    

    
      

      
        
           

        

        
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