SEC Contract Filing

Filing Date: 2017-01-12

Document Content:
<DOCUMENT>
<TYPE>EX-10.4
<SEQUENCE>5
<FILENAME>v456786_ex10-4.htm
<DESCRIPTION>EXHIBIT 10.4
<TEXT>
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<P STYLE="margin: 0"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: right"><B>Exhibit</B> <B>10.4</B></P>

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<P STYLE="margin-top: 0pt; text-align: center; margin-bottom: 0pt"><B>CANCELLATION<FONT STYLE="font-size: 10pt"> AND RELEASE AGREEMENT</FONT></B></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">CANCELLATION AND RELEASE
AGREEMENT (the &ldquo;Agreement&rdquo;), dated as of January 6, 2017, by and between Presidential Realty Corporation, a Delaware
corporation (the &ldquo;Company&rdquo;), and Alexander Ludwig (&ldquo;Releasor&rdquo;), the President, Chief Operating Officer,
Director and Principal Financial Officer&nbsp;of the Company.</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">WHEREAS, on November
8, 2011, the Company entered into an employment agreement with Releasor, which was amended on January 8, 2014 (as amended, the
&ldquo;Employment Agreement&rdquo;), pursuant to which, among things, Releasor was issued a warrant (the &ldquo;Transaction Warrant&rdquo;)
to purchase shares of the Company&rsquo;s Class B common stock to be issued to Releasor upon the closing of each acquisition transaction
by the Company of cash or property (including capital commitments for the purchase of assets) based on a formula set forth in the
Employment Agreement;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">WHEREAS, on November
8, 2011, the Company entered into an option agreement (the &ldquo;Option Agreement&rdquo;) with Releasor, pursuant to which the
Company granted to Releasor the right and option to purchase 370,000 shares of the Company&rsquo;s Class B common stock at a price
of $1.25 per share based on the occurrence of certain events as set forth in the Option Agreement (the &ldquo;Option,&rdquo; and
together with the Transaction Warrant, the &ldquo;Equity Awards&rdquo;);</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">WHEREAS, on December
16, 2016, the Company and its newly formed operating partnership, Presidential Realty Operating Partnership LP, for which it acts
as general partner, entered into the Interest Contribution Agreement (as the same may be amended, the &ldquo;ICA&rdquo;) with First
Capital Real Estate Trust Incorporated, First Capital Real Estate Operating Partnership, Township Nine Owner, LLC, Capital Station
Holdings, LLC, Capital Station Member, LLC, Capital Station 65 LLC and Avalon Jubilee LLC; and</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">WHEREAS, as a condition
precedent to the closing of the transactions contemplated by the ICA and in consideration of the issuance of the Company&rsquo;s
Class B common stock to Releasor as set forth below, the Equity Awards and all other obligations as to equity of the Company set
forth in the Employment Agreement shall be cancelled pursuant to this Agreement.</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">NOW, THEREFORE, for
good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the parties hereby agree as follows:</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">1.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Issuance
of Shares</U>. In consideration of the agreements by Releasor set forth herein, including, without limitation, the cancellation
of the Transaction Warrant and the Option, the Company shall issue Releasor (x) Four Hundred Fifty Thousand (450,000) shares of
the Company&rsquo;s Class B common stock on or before the closing of the Avalon Property (as described in Section 2.1 of the ICA)
(the &ldquo;Avalon Closing&rdquo;), and (y) an option to purchase Five Hundred Fifty Thousand (550,000) shares of the Company&rsquo;s
Class B common stock at such time and upon the satisfaction of those conditions set forth in such option, which includes (among
other things) the restriction on exercise in the event any underlying shares would be deemed &ldquo;Excess Shares&rdquo; as that
term is defined in the certificate of incorporation of the Company, and Ludwig hereby agrees not to exercise or attempt to exercise
such option for a number of shares which, when taken together with his other ownership of the Company&rsquo;s securities, would
result in the issuance of any Excess Shares.</P>

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