Settlement of Litigation Agreement 2020

WEHI shall pay to Fair Share Housing Center the amount of $50,000, which sum represents all legal fees/expenses of Fair Share Housing Center (“FSHC”), as agreed to by FSHC. 2.7, The Township hereby acknowledges that this Agreement was the result of numerous mediation sessions conducted by the Special Master in the Declaratory Judgment Litigation, Although the Association was not a party to the Declaratory Judgment Litigation, the Township and WEHI recognized that the Association was an interested party with regard to the development of the Subject Property. Accordingly, a representative of the Board of Directors of the Association and the Board’s attorney were invited to attend mediation sessions and otherwise be a part of the mediation process, Through its participation in the mediation process, the Association offered a great amount of input regarding the development of the Subject Property, which input, in part, is reflected in the Concept Plan. 3. OBLIGATIONS OF WEHI. 3.1 Obligation To Submit Development Applications Substantially Consistent With the Concept Plan. WEBI shall file and seek Planning Board approval of a site plan and/or subdivision application substantially consistent with the design for the Proposed Development of the Subject Property as represented in the Concept Plan, subject to the addition of amenities buildings and structures within the general area of disturbance depicted on the Concept Plan (i.e., clubhouse, dog park, maintenance shed and other aesthetic considerations), In light of the Zoning Amendment, the parties do not contemplate that any substantial waivers and/or variances will be necessary to develop the Subject Property in accordance with the Concept Plan. However, the parties acknowledge that WEHI has not yet engineered the Proposed Development and that upon engineering the Proposed Development and the submission of Jand development applications, it may become necessary to seek waivers, variances (except use variances) and/or other relief. In ot

such event, the parties acknowledge that WEHI shall be entitled to such minor relief as may be necessary to develop the Subject Property in accordance with the Concept Plan. The bedroom distribution for all affordable units in the Concept Plan shall comply with New Jersey’s Uniform Housing Affordability Controls, applicable Council on Affordable Housing Regulations and the Fair Housing Act, including those provisions regarding the phasing of affordable units. No more than twenty percent (20%) may be one bedroom units; at least thirty percent (30%) will be two bedroom units; and at least twenty percent (20%) will be three bedroom units, Thirteen percent (13%) of the affordable units shall be affordable to very low-income households; thirty-seven percent (37%) of the affordable units shall be affordable to low income households; and the remaining fifty percent (50%) of the affordable units shall be affordable to moderate income households. In addition, WEHI shall execute an Agreement with an Administrative Agent designated by the Township to administer the affirmative marketing of the affordable units including but not limited to advertising, income qualifying, setting rents/re-rents and affordability controls and related responsibilities. Ail costs shall be the sole responsibility of WEHI. All affordable units shall comply with the requirements set forth in N.J.A.C. 5:80-26.11, which requires all affordable units to be deed restricted for a period of at least thirty (30) years commencing on the date of initial occupancy. 3.2 Obligation to Support the Township's Affordable Housing Compliance Plan. WEHI agrees to not object to the Township’s compliance plan in connection with the Township's satisfaction of its Third-Round affordable housing obligation. 3.3. Obligation During the Construction of the Proposed Development. WEHI agrees to the Design Terms and Conditions and guidelines set forth in the attached Exhibit C in connection with the construction of the Proposed Development; 12

3.4 Obligation to The Association. As consideration for the Association’s promise to support, and not object to, the Proposed Development, as fully set forth in paragraph 4 below, WEHI agrees to the Terms and Conditions set forth in the attached Exhibit D regarding the development of the Subject Property and the construction of the Proposed Development, 3.5 Deed Restriction of Subject Property. After all building permits for the Proposed Development have been issued by the Township, WEHI agrees to record a deed restriction for the Subject Property, which deed restriction will run solely in favor of the Township and solely for the benefit of the Township. Substantively, the deed restriction shall restrict the Subject Property from all further development, except for the need to install and/or modify utilities and the construction of non-commercial amenities and accessory buildings which would serve the residents of the Proposed Development and/or the Association, including but not limited to a clubhouse, fitness center and other facilities beneficial to the residents. WEHI recognizes that approval from an appropriate land use board would nonetheless be required to construct any such additional amenity/accessory buildings. 3.6 Obligation to Pay for the Services of DeFeo & Associates. WEHI agrees to pay for the services of DeFeo & Associates in connection with the Proposed Development. In that regard, the Township shall promptly provide WEHI with copies of all invoices received from DeFeo & Associates. 3.7 Obligation to Keep the Township and the Association Informed. WEHI shall keep the Township and Association fully and contemporaneously informed regarding construction activities on the Subject Property and shall utilize a website and/or social media available to the Township and the Association and its members for construction updates and communications. 13

4, OBLIGATIONS OF THE ASSOCIATION, 4.1 Obligation to Support, and Not Object to, the Proposed Development. The Association hereby recognizes that the Concept Plan, Proposed Development and this Agreement are the product of several Court-ordered mediation sessions in the Declaratory Judgment Action, and that members of the Association’s Board of Directors participated in those mediation sessions. The Association acknowledges that the Concept Plan, Proposed Development and this Agreement reflect the Association’s input and are acceptable to the Association. The Association hereby agrees to support and endorse, and not object to, any application made by WEHI to the Planning Board or any other agency that is consistent with the Concept Plan and this Agreement. 5. MUTUAL OBLIGATIONS. 5.1 Mutual Good Faith, Cooperation and Assistance. The Parties shall exercise good faith, cooperate and assist each other in fulfilling the intent and purpose of this Agreement, including, but not limited to, the approval of this Agreement by the Superior Court, the site plan and/or subdivision approval for the Subject Property and the defense of any challenge with regard to any of the foregoing by any party or entity, including but not limited to Essex Fells, Verona, and individuals having an ownership interest in the Condominium. 5.2 Need for Concept Plan Revisions. It is WEHI’s full intention to develop the Subject Property in accordance with the Concept Plan so that 496 total units are constructed pursuant to the general building layout on the Concept Plan. However, if, for any reason, the Proposed Development as contemplated by the Concept Plan cannot be built because WEHI is unable to obtain one or more governmental approvals from the NIDEP, County of Essex, the Planning Board or any other third-party, or that any such approvals would necessitate the development of less than 496 total units or the significant relocation of one or more structures as 14

set forth on the Concept Plan, the Parties recognize that the Subject Property shall remain in the Township’s Mount Laure! compliance plan and that the Parties agree to cooperate in good faith to amend the Concept Plan so that the Parties agree upon an altemative concept for the Proposed Development to yield 496 units, 100 of which would be affordable units. If necessary, the Parties will utilize the Special Master in the Declaratory Judgment Litigation to mediate such negotiations regarding Concept Plan revisions. If any such revisions are necessary, the Parties shall in good faith work to address the spirit and intent of the Association’s concerns as set forth in this Agreement, to the extent possible. 5.3, Fairness Hearing, The Parties acknowledge that the Superior Court will need to conduct a fairness hearing as to the fairness and reasonableness of this Agreement before approving same and the Court will presumably seek the input of the Special Master before making a decision. 5.4, Pending Tax Appeals. WEHI shall dismiss all pending tax appeals regarding the Subject Property without prejudice upon approval of this Agreement by the Court ata duly noticed fairness hearing. The without prejudice dismissal contemplated herein shall be accomplished by WERHI and the Township filing a Stipulation of Dismissal Without Prejudice, which stipulation shail include an agreement tolling the statute of limitations for any and all tax appeals regarding the Subject Property and providing that if any of the tax appeals need to be refilled by WEHI, the tefiling of such appeals shall be deemed to have been filed in a timely manner. WEHI will dismiss any and all tax appeals regarding the Subject Property with prejudice after all building permits for the Proposed Development have been issued by the Township. 15

6.0 MISCELLANEOUS PROVISIONS. 6.1, Effective Date of Agreement. The terms set forth in this Agreement shall become effective upon approval thereof by the Court at a Fairness Hearing duly noticed in accordance with law, 6.2, Severability, Unless otherwise specified, it is intended that the provisions of this Agreement are to be severable. The validity of any section, clause ot provision of this Agreement shall not affect the validity of the remaining sections, clauses or provisions hereof. If any section _ of this Agreement shall be adjudged by a Court to be invalid, illegal or unenforceable in any respect, such determination shall not affect the remaining sections, 6.3. Successors Bound. The provisions of this Agreement and the obligations and benefits hereunder shall be binding upon and inure to the benefit of the parties, their successors and assigns, including any person, corporation, partnership, or other legal entity which at any particular time may have an interest in any of the provisions which are the subject of this Agreement. The Parties acknowledge that the individual members of the Association are not bound by this Agreement. 64. Governing Law. This Agreement shall be governed by and construed by the laws of the State of New Jersey. Venue shall be exclusively in the Superior Court of New Jersey, Essex County, Law Division, 6.5. Ne Modification. This Agreement may not be modified, amended or altered in any way except by a wriling signed by each of the parties hereto. 6.6. Counterparts. This Agreement may be executed in any number of counterparts, each of which shall be an original and all of which together shall constitute but one and the same . Agreement.

6.7, Voluntary Agreement. The parties acknowledge that each has entered into this Agreement on its own volition without coercion or duress after consulting with its counsel, that each party is the proper person and possesses the authority to sign the Agreement, that this Agreement contains the entire understanding of the parties and that there are no representations, warranties, covenants or undertakings other than those expressly set forth herein. Township approval is subject to formal approval by the Township Council. 6.8. Preparation. Each of the parties hereto acknowledges that this Agreement was not drafted by anyone of the parties, but was drafted, negotiated and reviewed by all parties and, therefore, the presumption of resolving ambiguities against the drafter shall not apply. Each of the parties expressly represents to the other that: (i) it has been represented by counsel in connection with negotiating the terms of this Agreement; and (ii) it has conferred due authority for execution of this Agreement upon the persons executing it. 6.9. Exhibits. Any and all exhibits annexed to this Agreement are hereby made a part of this Agreement. 6.10. Entire Agreement, This Agreement constitutes the entire Agreement between the parties hereto and supersedes all prior oral and written agreements between the parties with respect to the subject matter hereof, except as otherwise provided herein. 6.11. Notices. All notices required under this Agreement (“Notice(s)”) shall be written and shall be served upon the respective parties by Certified Mail, Return Receipt Requested or by a recognized overnight or by a personal carrier. In addition, where feasible (for example, transmittals of less than 50 pages) Notices shall be served by email. All Notices shall be deemed received upon the date of delivery. Delivery shall be affected as follows: 7

To WEHI: West Essex Highlands, Inc. 820 Morris Turnpike Short Hills, NJ 07078 Attn.: Mark Hoffman Email: markh@gardenhomes.com With a copy to counsel for WEHI: Bryan D. Plocker, Esq. Hutt & Shimanowitz, P.C. 459 Amboy Avenue Woodbridge, NJ 07095 Email: bplocker@huttshim.com - To the Township: Township of West Orange 66 Main Street West Orange, NJ 07052 Atin.: Township Administrator With a copy to counsel for the Township: Richard D. Trenk, Esq. McManimon, Scotland & Baumann, LLC 75 Livingston Avenue Roseland, NJ 07068 Email: rtrenk@msbnj.com To the Association: West Essex Highlands Condominium Association, Inc. 1 Reger Lane West Orange, NJ 07052 Attn: President, Board of Directors With a copy to counsel for the Association: Kenneth R. Sauter, Esq. Hill Wallack LLP 240 Cedar Knolls Road, Suite 209 Cedar Knolls, NJ 07927 Email: ksauter@hillwallack.com 18

IN WITNESS WHEREOF, WEIHI, the Township and the Association have caused this Agreement to be properly executed, witnessed and/or attested this ___. day of » 2020, WIEST BSSEX HIGHLANDS, INC. Witness: _ By. Dated: * tre Fartnevale WEST ESSEX HIGHLANDS CONDOMINIUM ASSOCIATION, ING.

Firefox about:blank IN WITNESS WHEREGF, WEHI, the Township and the Association have caused this Agreement to be properly executed, witnessed and/or attested this Zofaay of, pe RIC , 2020. WEST ESSEX HIGHLANDS, INC. Mock tenn Mark Wie TOWNSHIP OF WEST ORANGE Witness: By. Dated: WEST ESSEX HIGHLANDS CONDOMINIUM ASSOCIATION, INC. ‘Witmess: By. Dated: Toft - 4/23/20. 10:51 Al