<SUBMISSION>
<ACCESSION-NUMBER>0000910680-07-000586
<TYPE>8-K
<PUBLIC-DOCUMENT-COUNT>4
<PERIOD>20070621
<ITEMS>1.01
<ITEMS>8.01
<ITEMS>9.01
<FILING-DATE>20070625
<DATE-OF-FILING-DATE-CHANGE>20070625
<FILER>
<COMPANY-DATA>
<CONFORMED-NAME>JACLYN INC
<CIK>0000052969
<ASSIGNED-SIC>3100
<IRS-NUMBER>221432053
<STATE-OF-INCORPORATION>DE
<FISCAL-YEAR-END>0630
</COMPANY-DATA>
<FILING-VALUES>
<FORM-TYPE>8-K
<ACT>34
<FILE-NUMBER>001-05863
<FILM-NUMBER>07938134
</FILING-VALUES>
<BUSINESS-ADDRESS>
<STREET1>635 59TH STREET
<CITY>WEST NEW YORK
<STATE>NJ
<ZIP>07093
<PHONE>2018689400
</BUSINESS-ADDRESS>
<MAIL-ADDRESS>
<STREET1>5801 JEFFERSON STREET
<CITY>WEST NEW YORK
<STATE>NJ
<ZIP>07093
</MAIL-ADDRESS>
</FILER>
<DOCUMENT>
<TYPE>8-K
<SEQUENCE>1
<FILENAME>f8k062107.htm
<DESCRIPTION>CURRENT REPORT
<TEXT>
<HTML>
<HEAD>
<TITLE></TITLE>
</HEAD>
<BODY>


<!-- MARKER FORMAT-SHEET="Head Major Center Bold" FSL="Default" -->
<H1 ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>UNITED STATES<BR>SECURITIES AND
EXCHANGE COMMISSION<BR>Washington, D.C. 20549 </FONT></H1>

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     <P ALIGN=CENTER>_________________ </P>

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<H1 ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=3>FORM 8-K </FONT></H1>

<!-- MARKER FORMAT-SHEET="Head Major Center Bold" FSL="Default" -->
<H1 ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>CURRENT REPORT <BR>Pursuant to Section 13
or 15(d) of the Securities Exchange Act of 1934 </FONT></H1>

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<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Date of Report (Date of
earliest event reported): June 21, 2007 </FONT></P>



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 <TD ALIGN="CENTER" WIDTH="100%"><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><B>JACLYN, INC. </B></FONT> <HR SIZE="1" WIDTH="100%" COLOR="Black"></TD></TR>
<TR VALIGN="TOP">
     <TD ALIGN="CENTER"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">(Exact Name of Registrant as Specified in its Charter) </FONT></TD></TR>
</TABLE>
<BR>

<TABLE CELLPADDING="0" CELLSPACING="0" ALIGN="CENTER" WIDTH="100%">
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     <TH ALIGN="CENTER"><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TH>
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<TR VALIGN=Bottom>
     <TD WIDTH="33%" ALIGN="CENTER"><FONT FACE="Times New Roman, Times, Serif" SIZE=2><U>Delaware</U></FONT></TD>
     <TD WIDTH="33%" ALIGN="CENTER"><FONT FACE="Times New Roman, Times, Serif" SIZE=2><U>1-5863</U></FONT></TD>
     <TD WIDTH="34%" ALIGN="CENTER"><FONT FACE="Times New Roman, Times, Serif" SIZE=2><U>22-1432053</U></FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN="CENTER"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(State or Other Jurisdiction</FONT></TD>
     <TD ALIGN="CENTER"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(Commission</FONT></TD>
     <TD ALIGN="CENTER"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(IRS Employer</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN="CENTER"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>of Incorporation)</FONT></TD>
     <TD ALIGN="CENTER"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>File No.)</FONT></TD>
     <TD ALIGN="CENTER"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Identification No.)</FONT></TD></TR>
</TABLE>
<BR>
<TABLE CELLPADDING="0" CELLSPACING="0" ALIGN="CENTER" WIDTH="100%">
<TR VALIGN=Bottom>
     <TH ALIGN="CENTER"><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TH>
     <TH ALIGN="CENTER"><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TH></TR>
<TR VALIGN=Bottom>
     <TD WIDTH="25%" ALIGN="CENTER"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">635 59<SUP>TH </SUP>Street </FONT></TD>
     <TD WIDTH="65%" ALIGN="CENTER"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD WIDTH="10%" ALIGN="CENTER"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN="CENTER"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>West New York, New Jersey</FONT></TD>
     <TD ALIGN="CENTER"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN="CENTER"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>07093</FONT></TD></TR>
<TR>
     <TD ALIGN="CENTER"><HR NOSHADE COLOR=#000000 SIZE=1></TD>
     <TD ALIGN="CENTER"><HR NOSHADE COLOR=#000000 SIZE=1></TD>
     <TD ALIGN="CENTER"><HR NOSHADE COLOR=#000000 SIZE=1></TD></TR>
<TR VALIGN=top>
     <TD ALIGN="CENTER"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(Address of Principal Executive Offices)</FONT></TD>
     <TD ALIGN="CENTER"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN="CENTER"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(Zip Code)</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN="CENTER"><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD></TR>
</TABLE>
<BR>

<!-- MARKER FORMAT-SHEET="Head Minor Center" FSL="Default" -->
<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Registrant&#146;s
telephone number, including area code:&nbsp;&nbsp;(201) 868-9400  </FONT></P>

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<TR VALIGN="BOTTOM">
     <TH ALIGN="CENTER"><FONT FACE="Times New Roman, Times, Serif" SIZE="3"></FONT></TH></TR>
<TR VALIGN="TOP">
 <TD ALIGN="CENTER" WIDTH="100%"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">Not Applicable</FONT> <HR SIZE="1" WIDTH="100%" COLOR="Black"></TD></TR>
<TR VALIGN="TOP">
     <TD ALIGN="CENTER"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">(Former Name or Former Address, if Changed Since Last Report) </FONT></TD></TR>
</TABLE>
<BR>

<!-- MARKER FORMAT-SHEET="Para Flush" FSL="Default" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Check the appropriate box below if
the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the
registrant under any of the following provisions: </FONT></P>

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<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2> <IMG SRC="ballot.jpg" HEIGHT="15" WIDTH="15">  </FONT></TD>
<TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)  </FONT></TD>
</TR>
</TABLE>

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<TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)  </FONT></TD>
</TR>
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<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2> <IMG SRC="ballot.jpg" HEIGHT="15" WIDTH="15"> </FONT></TD>
<TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR
240.14d-2(b))  </FONT></TD>
</TR>
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<TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR
240.13e-4(c))  </FONT></TD>
</TR>
</TABLE>
<BR>


<DIV STYLE="page-break-after:always"></DIV>



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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
<TR VALIGN=TOP>
<TD WIDTH=10%><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>Item 1.01. </B> </FONT></TD>
<TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>Entry
into a Material Definitive Agreement. </B> </FONT></TD>
</TR>
</TABLE>
<BR>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;On
June 21, 2007, Jaclyn, Inc. (the &#147;<U>Company</U>&#148;) entered into an Agreement to
Sell and Purchase Real Property dated as of June 15, 2007 with 5801 Jefferson Street, LLC
(the &#147;<U>Proposed Purchaser</U>&#148;) under which the Company agreed to sell to the
Proposed Purchaser the Company&#146;s former executive offices and warehouse facility, as
well as two adjacent lots, located in West New York, New Jersey. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
proposed purchase price is $8,000,000, the substantial portion of which is payable at
closing. The closing of the sale is scheduled for October 15, 2007, although the Proposed
Purchaser has the right to extend the closing date for two separate 4-month periods, in
each case upon payment of an extension fee. The Proposed Purchaser also has the right, for
a 60-day period after the agreement date, to terminate the agreement under certain
circumstances based on its environmental due diligence of the properties to be sold. The
closing is contingent on the Proposed Purchaser&#146;s receipt of governmental approvals
required for the construction of residential, multi-family housing consisting of 150
residential units, as well as a number of other contingencies and conditions, including
the receipt of acquisition and construction loan commitments. </FONT></P>

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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
<TR VALIGN=TOP>
<TD WIDTH=10%><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>Item 8.01. </B> </FONT></TD>
<TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>Other
Events. </B> </FONT></TD>
</TR>
</TABLE>
<BR>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;On
June 21, 2007, the Company issued a press release relating to the Agreement to Sell and
Purchase Real Property described above in Item 1.01 of this Current Report on Form 8-K. A
copy of that press release is attached to this Current Report on Form 8-K as Exhibit 99.01
and is incorporated by reference herein. </FONT></P>

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<TR VALIGN=TOP>
<TD WIDTH=10%><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>Item 9.01. </B> </FONT></TD>
<TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>Financial
Statements and Exhibits. </B> </FONT></TD>
</TR>
</TABLE>
<BR>


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<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>         (a)  </FONT></TD>
<TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=85%><FONT FACE="Times New Roman, Times, Serif" SIZE=2><U>Financial
Statements of Businesses Acquired</U>.  Not Applicable. </FONT></TD>
</TR>
</TABLE>
<BR>

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<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>         (b)  </FONT></TD>
<TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=85%><FONT FACE="Times New Roman, Times, Serif" SIZE=2><U>Pro
Forma Financial Information</U>.   Not Applicable. </FONT></TD>
</TR>
</TABLE>
<BR>

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<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>         (c)  </FONT></TD>
<TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=85%><FONT FACE="Times New Roman, Times, Serif" SIZE=2><U>Shell
Company Transactions</U>.  Not Applicable. </FONT></TD>
</TR>
</TABLE>
<BR>

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<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>         (d)  </FONT></TD>
<TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=85%><FONT FACE="Times New Roman, Times, Serif" SIZE=2><U>Exhibits</U>. </FONT></TD>
</TR>
</TABLE>
<BR>

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<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=15%><FONT FACE="Times New Roman, Times, Serif" SIZE=2><U>Exhibit No</U>.  </FONT></TD>
<TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=75%><FONT FACE="Times New Roman, Times, Serif" SIZE=2><U>Description</U> </FONT></TD>
</TR>
</TABLE>
<BR>

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<TABLE WIDTH="100%" CELLPADDING="0" CELLSPACING="0">
<TR VALIGN=TOP>
<TD WIDTH="10%" ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="15%" ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>10.01 </FONT></TD>
<TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH="75%" ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Agreement
 to Sell and  Purchase  Real  Property  with  5801  Jefferson
                                            Street,  LLC dated as of June 15,  2007
 between  the  Company and 5801                                             Jefferson
Street, LLC. </FONT></TD>
</TR>
</TABLE>
<BR>

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<TD WIDTH=10%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=15%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>99.01  </FONT></TD>
<TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=75%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Press
Release of the Company dated June 21, 2007.</FONT></TD>
</TR>
</TABLE>
<BR>

<DIV STYLE="page-break-after:always"></DIV>

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<H1 ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>SIGNATURES </FONT></H1>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Pursuant
to the requirements of Securities Exchange Act of 1934, the registrant has duly caused
this report to be signed on its behalf by the undersigned hereunto duly authorized. </FONT></P>

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<TR VALIGN="TOP">
     <TD WIDTH="50%"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">Date: June 25, 2007<BR>
<BR>
<BR>
<BR>
</FONT></TD>
     <TD WIDTH="50%"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">JACLYN, INC.<BR>
<BR>
<BR>
By: <U>/s/ Anthony Christon</U><BR>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;Anthony Christon, Chief Financial Officer<BR>
</FONT></TD></TR>
</TABLE>


<DIV STYLE="page-break-after:always"></DIV>


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<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>EXHIBIT INDEX </FONT></P>

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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=15%><FONT FACE="Times New Roman, Times, Serif" SIZE=2><U>Exhibit No</U>.  </FONT></TD>
<TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=75%><FONT FACE="Times New Roman, Times, Serif" SIZE=2><U>Description</U> </FONT></TD>
</TR>
</TABLE>
<BR>

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<TABLE WIDTH="100%" CELLPADDING="0" CELLSPACING="0">
<TR VALIGN=TOP>
<TD WIDTH="10%" ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="15%" ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>10.01 </FONT></TD>
<TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH="75%" ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE=2><A HREF="ex10_01-f8k062107.htm">Agreement
 to Sell and  Purchase  Real  Property  with  5801  Jefferson
                                            Street,  LLC dated as of June 15,  2007
 between  the  Company and 5801                                             Jefferson
Street, LLC.</A> </FONT></TD>
</TR>
</TABLE>
<BR>

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<TR VALIGN=TOP>
<TD WIDTH=10%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=15%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>99.01  </FONT></TD>
<TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=75%><FONT FACE="Times New Roman, Times, Serif" SIZE=2><A HREF="ex99_01-f8k062107.htm">Press
Release of the Company dated June 21, 2007.</A></FONT></TD>
</TR>
</TABLE>
<BR>


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<DOCUMENT>
<TYPE>GRAPHIC
<SEQUENCE>2
<FILENAME>ballot.jpg
<DESCRIPTION>GRAPHIC
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MQ\C)RM+3U-76U]C9VN'BX^3EYN?HZ>KQ\O/T]?;W^/GZ_\0`'P$``P$!`0$!
M`0$!`0````````$"`P0%!@<("0H+_\0`M1$``@$"!`0#!`<%!`0``0)W``$"
M`Q$$!2$Q!A)!40=A<1,B,H$(%$*1H;'!"2,S4O`58G+1"A8D-.$E\1<8&1HF
M)R@I*C4V-S@Y.D-$149'2$E*4U155E=865IC9&5F9VAI:G-T=79W>'EZ@H.$
MA8:'B(F*DI.4E9:7F)F:HJ.DI::GJ*FJLK.TM;:WN+FZPL/$Q<;'R,G*TM/4
MU=;7V-G:XN/DY>;GZ.GJ\O/T]?;W^/GZ_]H`#`,!``(1`Q$`/P#U."#5-9UW
M7U'B/4K&"SO4MX8+6*V*A3;0R$DR0LQ):1N_I6KX5OKC4_!^B7]W()+FZL()
MI7``W.T:EC@<#DGI3+GPKI=S>W5V6U"&:Z=9)C;:G<P*[!50';'(`#M11D#M
?6G8V5OINGVUC:1^5;6T2PPQ@D[44`*,GG@`=:`/_V3\_
`
end
</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-10
<SEQUENCE>3
<FILENAME>ex10_01-f8k062107.htm
<DESCRIPTION>EX-10.1; AGREEMENT
<TEXT>
<HTML>
<HEAD>
<TITLE></TITLE>
</HEAD>
<BODY>

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<P ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B><A NAME="ex10_01">Exhibit 10.01</A> </B></FONT></P>

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<H1 ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=4>AGREEMENT TO SELL AND
PURCHASE </FONT></H1>

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<H1 ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=4>REAL PROPERTY BY AND
BETWEEN: </FONT></H1>

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<H1 ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=4>JACLYN, INC. </FONT></H1>

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<H1 ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=4>AND </FONT></H1>

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<H1 ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=4>5801 JEFFERSON STREET,
LLC </FONT></H1>

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<H1 ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=3>Counsel to Seller: </FONT></H1>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Philip D. Neuer, Esq.<BR>Philip D.
Neuer, P.C.<BR>1875 McCarter Highway<BR>Newark, New Jersey 07104<BR>Telephone Number (973)
482-0840<BR>Facsimile Number (973) 482-0087<BR>E-Mail <U>&#147;pdn@neuerlaw.com&#148;</U>and <U>&#147;pdneuer@aol.com&#148;</U> </FONT></P>

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<H1 ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=3>Counsel to Purchaser: </FONT></H1>

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     <P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>J. Alvaro Alonso, Esq.<BR>
Alonso &amp; Navarrete, LLC<BR>6121 Kennedy Boulevard<BR>North Bergen, NJ 07047<BR>
Telephone Number (201) 295-9977<BR>Facsimile Number (201) 295-9565<BR>
E-Mail &#147;aalonsoesq@aol.com&#148;</FONT></P>

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<H1 ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=3><U>INDEX</U></FONT></H1>

<TABLE CELLPADDING="0" CELLSPACING="0" ALIGN="CENTER" WIDTH="70%">
<TR VALIGN=Bottom>
     <TD WIDTH="15%" ALIGN="LEFT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD>
     <TD WIDTH="75%" ALIGN="LEFT"><FONT FACE="Times New Roman" SIZE=2><U><B>Heading</B></U></FONT></TD>
     <TD WIDTH="10%" ALIGN="LEFT"><FONT FACE="Times New Roman" SIZE=2><U><B>Page</B></U></FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman" SIZE=2></FONT></TD>
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman" SIZE=2><BR><B><U>RECITALS</U></B></FONT></TD>
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman" SIZE=2><BR>1</FONT></TD></TR>
</TABLE>
<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>         <B><BR>1.</B>  </FONT></TD>
<TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=85%><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B><BR>CONDITIONS
OF CLOSING</B> </FONT></TD>
</TR>
</TABLE>
<TABLE CELLPADDING="0" CELLSPACING="0" ALIGN="CENTER" WIDTH="70%">
<TR VALIGN="BOTTOM" BGCOLOR="#CCEEFF">
     <TD WIDTH="15%" ALIGN="LEFT"><FONT FACE="Times New Roman" SIZE=2>1.01.</FONT></TD>
     <TD WIDTH="75%" ALIGN="LEFT"><FONT FACE="Times New Roman" SIZE=2><A HREF="#closing">Closing of Title</A></FONT></TD>
     <TD WIDTH="10%" ALIGN="LEFT"><FONT FACE="Times New Roman" SIZE=2>1-2</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman" SIZE=2>1.02.</FONT></TD>
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman" SIZE=2><A HREF="#purchase">Purchase Price</A></FONT></TD>
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman" SIZE=2>2&nbsp;</FONT></TD></TR>
<TR VALIGN="BOTTOM" BGCOLOR="#CCEEFF">
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman" SIZE=2>1.02.1</FONT></TD>
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman" SIZE=2><A HREF="#mortgage">Mortgage Contingency</A></FONT></TD>
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman" SIZE=2>2-3</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman" SIZE=2>1.03.</FONT></TD>
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman" SIZE=2><A HREF="#apportionment">Apportionment of Taxes, Rents and Charges</A></FONT></TD>
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman" SIZE=2>3&nbsp;</FONT></TD></TR>
<TR VALIGN="BOTTOM" BGCOLOR="#CCEEFF">
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman" SIZE=2>1.04.</FONT></TD>
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman" SIZE=2><A HREF="#realty">Realty Transfer Fee</A></FONT></TD>
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman" SIZE=2>3&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman" SIZE=2>1.05.</FONT></TD>
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman" SIZE=2><A HREF="#possession">Possession</A></FONT></TD>
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman" SIZE=2>3-4</FONT></TD></TR>
<TR VALIGN="BOTTOM" BGCOLOR="#CCEEFF">
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman" SIZE=2>1.06.</FONT></TD>
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman" SIZE=2><A HREF="#intentionally">Intentionally Omitted</A></FONT></TD>
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman" SIZE=2>4&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman" SIZE=2>1.07.</FONT></TD>
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman" SIZE=2><A HREF="#sellers">Seller's Warranties</A></FONT></TD>
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman" SIZE=2>4-5</FONT></TD></TR>
<TR VALIGN="BOTTOM" BGCOLOR="#CCEEFF">
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman" SIZE=2>1.08.</FONT></TD>
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman" SIZE=2><A HREF="#conditions">Conditions Precedent: ISRA Compliance</A></FONT></TD>
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman" SIZE=2>5-7</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman" SIZE=2>1.09</FONT></TD>
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman" SIZE=2><A HREF="#due">Due Diligence</A></FONT></TD>
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman" SIZE=2>7-8</FONT></TD></TR>
<TR VALIGN="BOTTOM" BGCOLOR="#CCEEFF">
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman" SIZE=2>1.10.</FONT></TD>
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman" SIZE=2><A HREF="#purchaseredemption">Purchaser's Representation</A></FONT></TD>
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman" SIZE=2>7-8</FONT></TD></TR>
</TABLE>
<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>         <B><BR>2.</B>  </FONT></TD>
<TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=85%><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B><BR>TITLE
AND CONDITION OF PREMISES</B> </FONT></TD>
</TR>
</TABLE>
<TABLE CELLPADDING="0" CELLSPACING="0" ALIGN="CENTER" WIDTH="70%">
<TR VALIGN="BOTTOM" BGCOLOR="#CCEEFF">
     <TD WIDTH="15%" ALIGN="LEFT"><FONT FACE="Times New Roman" SIZE=2>2.01.</FONT></TD>
     <TD WIDTH="75%" ALIGN="LEFT"><FONT FACE="Times New Roman" SIZE=2><A HREF="#stateoftitle">State of Title</A></FONT></TD>
     <TD WIDTH="10%" ALIGN="LEFT"><FONT FACE="Times New Roman" SIZE=2>8-9</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman" SIZE=2>2.02.</FONT></TD>
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman" SIZE=2><A HREF="#objections">Objections to Title</A></FONT></TD>
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman" SIZE=2>9&nbsp;</FONT></TD></TR>
<TR VALIGN="BOTTOM" BGCOLOR="#CCEEFF">
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman" SIZE=2>2.03.</FONT></TD>
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman" SIZE=2><A HREF="#assessments">Assessments</A></FONT></TD>
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman" SIZE=2>9&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman" SIZE=2>2.04</FONT></TD>
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman" SIZE=2><A HREF="#conditionofpremises">Condition of Premise</A>s</FONT></TD>
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman" SIZE=2>10&nbsp;</FONT></TD></TR>
<TR VALIGN="BOTTOM" BGCOLOR="#CCEEFF">
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman" SIZE=2>2.05</FONT></TD>
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman" SIZE=2><A HREF="#acceptanceofdeed">Acceptance of the Deed</A></FONT></TD>
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman" SIZE=2>10&nbsp;</FONT></TD></TR>
</TABLE>
<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>         <B><BR>3.</B>  </FONT></TD>
<TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=85%><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B><BR>MISCELLANEOUS
PROVISIONS RELATING TO CLOSING</B> </FONT></TD>
</TR>
</TABLE>
<TABLE CELLPADDING="0" CELLSPACING="0" ALIGN="CENTER" WIDTH="70%">
<TR VALIGN="BOTTOM" BGCOLOR="#CCEEFF">
     <TD WIDTH="15%" ALIGN="LEFT"><FONT FACE="Times New Roman" SIZE=2>3.01.</FONT></TD>
     <TD WIDTH="75%" ALIGN="LEFT"><FONT FACE="Times New Roman" SIZE=2><A HREF="#riskofloss">Risk of Loss</A></FONT></TD>
     <TD WIDTH="10%" ALIGN="LEFT"><FONT FACE="Times New Roman" SIZE=2>10&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman" SIZE=2>3.02.</FONT></TD>
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman" SIZE=2><A HREF="#intentomit">Intentionally Omitted</A></FONT></TD>
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman" SIZE=2>10&nbsp;</FONT></TD></TR>
<TR VALIGN="BOTTOM" BGCOLOR="#CCEEFF">
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman" SIZE=2>3.03.</FONT></TD>
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman" SIZE=2><A HREF="#brokers">Brokers</A></FONT></TD>
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman" SIZE=2>10&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman" SIZE=2>3.04.</FONT></TD>
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman" SIZE=2><A HREF="#condemnation">Condemnation</A></FONT></TD>
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman" SIZE=2>10&nbsp;</FONT></TD></TR>
<TR VALIGN="BOTTOM" BGCOLOR="#CCEEFF">
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman" SIZE=2>3.05.</FONT></TD>
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman" SIZE=2><A HREF="#servicecontracts">Service Contracts</A></FONT></TD>
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman" SIZE=2>11&nbsp;</FONT></TD></TR>
</TABLE>
<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>         <B><BR>4.</B>  </FONT></TD>
<TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=85%><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B><BR>MISCELLANEOUS</B> </FONT></TD>
</TR>
</TABLE>
<TABLE CELLPADDING="0" CELLSPACING="0" ALIGN="CENTER" WIDTH="70%">
<TR VALIGN="BOTTOM" BGCOLOR="#CCEEFF">
     <TD WIDTH="15%" ALIGN="LEFT"><FONT FACE="Times New Roman" SIZE=2>4.01.</FONT></TD>
     <TD WIDTH="75%" ALIGN="LEFT"><FONT FACE="Times New Roman" SIZE=2><A HREF="#notice">Notice</A></FONT></TD>
     <TD WIDTH="10%" ALIGN="LEFT"><FONT FACE="Times New Roman" SIZE=2>11&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman" SIZE=2>4.02.</FONT></TD>
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman" SIZE=2><A HREF="#consent">Consent</A></FONT></TD>
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman" SIZE=2>11&nbsp;</FONT></TD></TR>
<TR VALIGN="BOTTOM" BGCOLOR="#CCEEFF">
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman" SIZE=2>4.03.</FONT></TD>
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman" SIZE=2><A HREF="#construction">Construction</A></FONT></TD>
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman" SIZE=2>11&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman" SIZE=2>4.04.</FONT></TD>
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman" SIZE=2><A HREF="#comagrement">Complete Agreement</A></FONT></TD>
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman" SIZE=2>12&nbsp;</FONT></TD></TR>
<TR VALIGN="BOTTOM" BGCOLOR="#CCEEFF">
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman" SIZE=2>4.05.</FONT></TD>
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman" SIZE=2><A HREF="#waiver">Waiver</A></FONT></TD>
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman" SIZE=2>12&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman" SIZE=2>4.06.</FONT></TD>
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman" SIZE=2><A HREF="#bindingeffect">Binding Effec</A>t</FONT></TD>
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman" SIZE=2>12&nbsp;</FONT></TD></TR>
<TR VALIGN="BOTTOM" BGCOLOR="#CCEEFF">
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman" SIZE=2>4.07.</FONT></TD>
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman" SIZE=2><A HREF="#exchange">1031 Exchange</A></FONT></TD>
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman" SIZE=2>12&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman" SIZE=2>4.08.</FONT></TD>
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman" SIZE=2><A HREF="#assignment">Assignment</A></FONT></TD>
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman" SIZE=2>12&nbsp;</FONT></TD></TR>
<TR VALIGN="BOTTOM" BGCOLOR="#CCEEFF">
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman" SIZE=2>4.09.</FONT></TD>
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman" SIZE=2><A HREF="#records">Seller's Right to Store Records After Closing</A></FONT></TD>
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman" SIZE=2>12&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman" SIZE=2>4.10.</FONT></TD>
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman" SIZE=2><A HREF="#installbanner">Purchaser's Right to Install Banner</A></FONT></TD>
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman" SIZE=2>13&nbsp;</FONT></TD></TR>
</TABLE>
<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>         <B><BR>5.</B>  </FONT></TD>
<TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=85%><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B><BR>DEFAULTS</B> </FONT></TD>
</TR>
</TABLE>
<TABLE CELLPADDING="0" CELLSPACING="0" ALIGN="CENTER" WIDTH="70%">
<TR VALIGN="BOTTOM" BGCOLOR="#CCEEFF">
     <TD WIDTH="15%" ALIGN="LEFT"><FONT FACE="Times New Roman" SIZE=2>5.01.</FONT></TD>
     <TD WIDTH="75%" ALIGN="LEFT"><FONT FACE="Times New Roman" SIZE=2><A HREF="#defpurchaser">Default by Purchaser</A></FONT></TD>
     <TD WIDTH="10%" ALIGN="LEFT"><FONT FACE="Times New Roman" SIZE=2>13&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman" SIZE=2>5.02.</FONT></TD>
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman" SIZE=2><A HREF="#defseller">Default by Seller</A></FONT></TD>
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman" SIZE=2>13&nbsp;</FONT></TD></TR>
<TR VALIGN="BOTTOM" BGCOLOR="#CCEEFF">
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman" SIZE=2>5.03.</FONT></TD>
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman" SIZE=2><A HREF="#remedies">Remedies</A></FONT></TD>
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman" SIZE=2>13-14</FONT></TD></TR>
</TABLE>

<DIV STYLE="page-break-after:always"></DIV>





<!-- *************************************************************************** -->
<!-- MARKER PAGE="sheet: 21; page: 21" -->
<HR SIZE=5 COLOR=GRAY NOSHADE>


<!-- MARKER FORMAT-SHEET="Head Minor Center" FSL="Default" -->
<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=3><U>INDEX TO EXHIBITS</U>  </FONT></P>

<TABLE CELLPADDING=0 CELLSPACING=0 BORDER=0 ALIGN=Center WIDTH=70%>
<TR VALIGN=Bottom>
     <TD WIDTH=26% ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2><U>EXHIBIT</U></FONT></TD>
     <TD WIDTH=72% ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2><U>DESCRIPTION</U></FONT></TD>
     <TD WIDTH=2% ALIGN=CENTER><FONT FACE="Times New Roman" SIZE=2><U>PAGE</U></FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2><BR>"A"</FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2><BR>Seller's Closing Documents</FONT></TD>
     <TD ALIGN=CENTER><FONT FACE="Times New Roman" SIZE=2><BR>1</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2><BR>"B"</FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2><BR>List of Tenancies</FONT></TD>
     <TD ALIGN=CENTER><FONT FACE="Times New Roman" SIZE=2><BR>3</FONT></TD></TR>
</TABLE>

<DIV STYLE="page-break-after:always"></DIV>

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<HR SIZE=5 COLOR=GRAY NOSHADE>



<!-- MARKER FORMAT-SHEET="Para Indent" FSL="Default" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;This
agreement (the &#147;Agreement&#148;) is made as of the 15<SUP>th</SUP> day of June, 2007,
by and between <B>JACLYN, Inc.</B>, located at 5801 Jefferson Street, West New York, New
Jersey 07093 (&#147;Seller&#148;); and <B>5801 JEFFERSON STREET, LLC</B>, located at 224
61<SUP>st</SUP> Street, West New York, New Jersey 07093 (&#147;Purchaser&#148;). </FONT></P>

<!-- MARKER FORMAT-SHEET="Head Sub 2 Left Bold Underline" FSL="Project" -->
<P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;<B><U><A NAME="recitals">RECITALS</A></U></B></FONT></P>

<!-- MARKER FORMAT-SHEET="Para (List) Indent" FSL="Default" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;A.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Seller
desires to sell and Purchaser desires to purchase all those certain lots,
          parcels or tracts of land (the &#147;Property&#148;), together with all
          improvements (the &#147;Improvements&#148;) to the Property which is commonly
          known as 5801-5802 Jefferson Street and 5901-5905 Jefferson Street and
5814-5816           Jefferson Street and 5808-5814 Washington Street, West New York
(Hudson County),           New Jersey, being known and designated as Lots 4 and 5 in
Block 130, Lot 13 in           Block 133 and Lot 2-01 in Block 129 on the official
municipal tax maps (if there           are any discrepancies between the street addresses
and the tax map references,           then the tax map references shall control) (the
Property and the Improvements           are referred to, collectively as the &#147;Premises&#148;)
upon the terms and           conditions set forth in this Agreement.  </FONT></P>

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     <P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;B.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
          For good and valuable consideration, the receipt and the sufficiency of which
          are acknowledged by both parties, Seller agrees to sell and convey to Purchaser,
          and Purchaser agrees to purchase from Seller, the Premises upon the following
          terms and conditions: </FONT></P>

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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>1.</B>  </FONT></TD>
<TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B><U>CONDITIONS
OF CLOSING</U>.</B></FONT></TD>
</TR>
</TABLE>
<BR>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.01.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U><A NAME="closing">Closing
of Title</A></U>.</B>&nbsp;&nbsp;&nbsp;&nbsp;The closing of title to the Premises shall be
          held on or before October 15, 2007, <B>TIME BEING OF THE ESSENCE</B>, subject
to           the Purchaser obtaining all final non-appealable approvals, at the office of
          Purchaser or Purchaser&#146;s attorney or at any location in Hudson, Bergen or
          Essex County, New Jersey designated by Purchaser. At the closing of title,
          Seller shall deliver the documents which are identified on <U>EXHIBIT
          &#147;A&#148;</U> which is attached to and made part of this Agreement. The
          original of each document identified shall be fully executed and where
required,           shall be acknowledged and in proper form for recording. The Closing
Date may be           extended only under the following circumstances: </FONT></P>

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                    <TR VALIGN=TOP>
                    <TD ALIGN=RIGHT WIDTH=6%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(a) </FONT></TD>
                    <TD ALIGN=LEFT WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
                    <TD WIDTH=91%><P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
                    Purchaser may elect to extend the Closing Date until February 15, 2008, <B>TIME
                    BEING OF THE ESSENCE</B> (the &#145;First Extended Closing Date&#146;) upon
                    Purchaser issuing to Seller written notice of such election not less than thirty
                    (30) days prior to the Closing Date, which notice shall constitute
                    Purchaser&#146;s authorization to Seller and Seller&#146;s attorney to remove
                    from the Deposit the sum of One Hundred Fifty Thousand ($150,000) Dollars, which
                    shall constitute a non-refundable payment to Seller which shall be either
                    retained by Seller if this transaction does not close for any reason other than
                    the willful default of Seller or credited against the Purchase Price at the time
                    of closing. The Deposit shall then consist of Three Hundred Fifty Thousand
                    ($350,000) Dollars. </FONT></P></TD>
                    </TR>
                    </TABLE>
                    <BR>

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                    <TR VALIGN=TOP>
                    <TD ALIGN=RIGHT WIDTH=6%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(b) </FONT></TD>
                    <TD ALIGN=LEFT WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
                    <TD WIDTH=91%><P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
                    Purchaser may elect to extend the Closing Date until June 15, 2008, <B>TIME
                    BEING OF THE ESSENCE</B> (the &#145;Final Extended Closing Date&#146;) upon
                    Purchaser issuing to Seller written notice of such election not less than thirty
                    (30) days prior to the Closing Date, which notice shall constitute
                    Purchaser&#146;s </FONT></P></TD>
                    </TR>
                    </TABLE>
                    <BR>

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<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>1 </FONT></P>

<DIV STYLE="page-break-after:always"></DIV>

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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
<TR VALIGN=TOP>
<TD WIDTH=9%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=91%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
authorization
to Seller and Seller&#146;s attorney to remove from the Deposit the sum of One Hundred
Fifty Thousand ($150,000) Dollars, which shall constitute a non-refundable payment to
Seller which shall be either retained by Seller if this transaction does not close for any
reason other than the willful default of Seller or credited against the Purchase Price at
the time of closing. The Deposit shall then consist of Two Hundred Thousand ($200,000)
Dollars. The Closing Date may not be extended further. </FONT></TD>
</TR>
</TABLE>
<BR>

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     <P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;<B>1.02.</B>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
         &nbsp;&nbsp;<B><U><A NAME="purchase">Purchase Price.</A></U></B><U></U>&nbsp;&nbsp;&nbsp;&nbsp;The purchase price at the closing of title
          shall be <B>Eight Million Dollars ($8,000,000)</B>, payable as follows: </FONT></P>

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     <P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
          <B>$250,000</B> upon execution of this Agreement (the &#147;Initial
          Deposit&#148;), by bank cashier&#146;s check, certified check or wire transfer,
          and <B>$250,000</B> on or before July 16, 2007 (the &#147;Supplemental
          Deposit&#148;) (the Initial Deposit and Supplemental Deposit are referred to,
          collectively, as the &#147;Deposit&#148;). The Deposit is to be held in escrow
          by Seller&#146;s attorney until closing of title. This sum shall be held in an
          interest bearing bank account or accounts with all interest to follow the
          Deposit. If Purchaser terminates this agreement for any permitted reason, then
          in each such event the Deposit and all the accrued interest shall be refunded to
          Purchaser. If this transaction proceeds to closing, then the Deposit, exclusive
          of the interest, shall be credited to Purchaser. </FONT></P>

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     <P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
          <B>$7,500,000</B> upon the delivery of deed, in cash or by bank cashier&#146;s
          check, certified check, or wire transfer. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;<B>1.02.1&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</B><B><U><A NAME="mortgage">Mortgage
Contingency.</A></U></B><U></U>&nbsp;&nbsp;&nbsp;&nbsp;Closing of title shall be subject to and contingent upon the
Purchaser obtaining an acquisition and construction loan commitment. The acquisition loan
portion of this contingency shall be deemed satisfied by the issuance of a commitment for
fifty (50%) percent of more of the Purchase Price and the construction loan portion of
this contingency shall be deemed satisfied by the issuance of a commitment for eighty
(80%) percent or more of the budgeted costs of construction, less a ten (10%) percent
retainage. Interest at prevailing rates plus not more than three (3) &#147;points&#148; shall
satisfy this contingency. There is no condition as to the term of the loan. If the lender
requests the personal guarantee of Roland Cribeiro or any other principals of the
purchaser or some or all of them (the &#147;Guarantors&#148;), then the Guarantors shall
agree to provide their guarantees.  </FONT></P>

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     <P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;<B>1.03.</B>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
          <B><U><A NAME="apportionment">Apportionment of Taxes, Rents and Charges.</A></U></B><U></U>&nbsp;&nbsp;&nbsp;&nbsp;All real estate
          taxes, water and sewer rents and charges, utility charges, fuel charges, rents,
          security deposits and other customary adjustments shall be apportioned as of the
          date of closing of title. </FONT></P>

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     <P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;<B>1.04.</B>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
          <B><U><A NAME="realty">Realty Transfer Fee.</A></U></B><U></U>&nbsp;&nbsp;&nbsp;&nbsp;The Realty Transfer Fee shall be paid
          by the Seller at the time the deed is submitted for recording. Purchaser shall
          pay the &#147;Mansion Tax&#148; at the time the deed is submitted for recording. </FONT></P>

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     <P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;<B>1.05.</B>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
          <B><U><A NAME="possession">Possession.</A></U></B><U></U>&nbsp;&nbsp;&nbsp;&nbsp;Upon closing of title, possession of the
          Premises shall be given to Purchaser subject to those leaseholds, tenancies, and
          occupancies as set forth on <B><U>Exhibit</U></B> </FONT></P>

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<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>2 </FONT></P>

<DIV STYLE="page-break-after:always"></DIV>




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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B><U>&#147;B&#148;</U></B><U></U>
which is attached to and made part of this Agreement. With respect to those tenancies,
Seller represents that: </FONT></P>

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     <P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;
(a)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
          The lease entered into with Stylecrest Frabrics, Ltd (&#147;Stylecrest&#148;) is
          currently scheduled to expire on April 30, 2013. Paragraph 19(a) provides in
          relevant part that the lease can be terminated upon no less than six months
          written notice after August 1, 2007 in the event that a contract of sale has
          been consummated. Paragraph 19(a) further provides that Stylecrest shall receive
          free occupancy for a period of time to be determined based on the date that the
          termination notice is given. Seller shall give the tenant written notice of
          termination within five (5) days following Purchaser obtaining a final approval
          vote for its application for development. Seller shall give the Purchaser a
          credit in the amount equal to the remaining term of the free occupancy period to
          the extent that closing of title shall take place prior to Stylecrest vacating
          the premises. </FONT></P>

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     <P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
          The original lease entered into with On the Mark, Inc. (Mark) expired without
          Mark exercising its option to renew. However, the lease has been extended
          through December 31, 2008 provided that the lease term could be terminated with
          four months written notice as set forth in a letter dated January 3, 2007.
          Seller represents that Mark has accepted the terms of the extension as set forth
          herein. Seller shall give the required four months written notice terminating
          the lease within five (5) days following Purchaser obtaining a final approval
          vote for its application for development. </FONT></P>

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     <P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
          The lease entered into with Pisces Sports, Inc (Pisces) is scheduled to expire
          on July 31, 2007. Seller represents that Pisces has not exercised its option to
          renew the lease pursuant to paragraph 10 of that lease. In any event, Seller
          shall give the tenant the required six month written notice terminating the
          lease five (5) days following Purchaser obtaining a final approval vote for its
          application for development. The notice shall provide that any exercise of the
          option prior to the July 31, 2007 lease expiration date will be subject to the
          termination notice. </FONT></P>

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     <P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
          Seller shall simultaneously serve upon counsel to the Purchaser a copy of all
          termination notices referred to in subparagraphs (a), (b), and (c). Seller shall
          commence and prosecute any and all eviction actions against any tenant(s) that
          does not vacate the Premises pursuant to the termination notices. Purchaser
          shall assume Seller&#146;s position in each such eviction action which is not
          concluded by the Closing Date, as the same may be extended. Seller shall not
          extend the term of any lease with any tenant without the expressed written
          consent of the Purchaser. </FONT></P>

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     <P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;(e)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
          Seller represents that the remainder of the Premises shall be delivered vacant
          and free of any tenancies, debris, machinery, or other personal property
          whatsoever. Other than the tenants referred to in this paragraph, there are no
          other tenants, approved subtenants, lessees, or approved sublessees located in
          the Premises. Seller represents that, other then as stated above, no tenant,
          subtenant, lessee, sublessee, or other third party has an option to renew any
          tenancy, a right of first refusal or option to purchase to the Premises other
          than as stated above. </FONT></P>

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<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>3 </FONT></P>

<DIV STYLE="page-break-after:always"></DIV>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;<B>1.06.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U><A NAME="intentionally">Intentionally
Omitted.</A></U></B></FONT></P>

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     <P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;<B>1.07.</B>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
          <B><U><A NAME="sellers">Seller&#146;s Warranties</A></U>.</B>&nbsp;&nbsp;&nbsp;&nbsp;Seller warrants and represents to
          Purchaser, knowing that Purchaser shall rely on each such warranty and
          representation in consummating this transaction, and all of which shall be
          restated at closing that: </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Seller
has the legal right, power and authority to enter into this agreement and           to
consummate the transaction or transactions contemplated in this agreement.           The
execution, delivery and performance of this agreement have been duly           authorized
and no other action is requisite to the valid and binding execution,           delivery
and performance of this agreement.  </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Seller
is a corporation of the State of Delaware in good standing and that its
          corporate charter has not been revoked or suspended.  </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Seller
is not a &#147;foreign person&#148; as defined in Section 1445 of the           Internal
Revenue Code.  </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Seller
has neither knowledge nor notice of any pending or threatened proceedings           at
law or in equity before any court, grand jury, administrative agency or other
          investigative body, or governmental department, commission, board, agency,
          bureau or instrumentality of any kind pending or, to the best of Seller&#146;s
          knowledge, threatened against or affecting Seller or the Premises that (i)
          involve the validity of enforceability of this Agreement of any other
instrument           or document to be delivered by Seller pursuant hereto, (ii) enjoin
or prevent or           threaten to enjoin or prevent the proposed Project or the
performance of           Sellers&#146; obligations hereunder, or (iii) related
specifically to the           Premises or the title thereto. Seller further represents
that any/all prior           contracts for the sale of the Premises have been mutually
cancelled by and           between the parties thereto and that the contract deposits
have been returned           and accepted by the purchaser. Seller represents that the
mutual cancellation of           terminates the contractual relationship between those
parties, as applicable,           and that neither party is seeking from the other any
remedy or relief resulting           from the cancellation of the contract.  </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;<B>1.08. &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U><A NAME="conditions">Conditions Precedent: ISRA Compliance</A></U>.</B> </FONT></P>

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     <P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>ISRA Compliance</U>. As a condition precedent to Closing of Title, Seller
          shall have received from the New Jersey Department of Environmental Protection
          (&#147;NJDEP&#148;) a letter of non-applicability (&#147;LNA&#148;) indicating
          that the Industrial Site Recovery Act, N.J.S.A. 13:1k-6 et. seq.,
          (&#147;ISRA&#148;) does not apply to this sale of the Property or if ISRA does
          apply to this transaction, Seller shall provide proof of ISRA compliance by
          providing Purchaser with any one of the following (hereinafter referred to as
          &#147;ISRA Compliance&#148;): (i) a Negative Declaration; (ii) No Further Action
          Letter; (iii) approved Remedial Action Workplan, (iv) Remedial Action Workplan
          Deferral; (v) Remediation Agreement; (vi) de minimis quantity exemption; (vii)
          expedited review approval; (viii) limited site review approval; (ix) area of
          concern waiver; (x) approval of transfer when remediation is already in progress
          waiver; (xi) regulated underground storage tank waiver; (xii) minimal
          environmental concern waiver; or (xiii) Certificate of Limited Conveyance.
          Seller may implement any engineering controls and/or institutional controls, </FONT></P>

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<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>4 </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>including but not limited to any well
restriction area and/or classification exemption area waivers which will not in anyway
impact upon or affect the development of a residential multifamily building in any way. </FONT></P>

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     <P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;
          <U>Seller&#146;s Environmental Representations</U>. Seller represents that there
          are no underground storage tanks for the storage of chemical or petroleum based
          heating products located on the Property to be sold. In the event the Property
          should contain an oil tank which has been abandoned by the Seller, it is
          seller&#146;s responsibility to have same decommissioned in accordance with New
          Jersey statute and/or local ordinance. If the Property in question is presently
          heated by oil fuel from an underground storage tank, Purchaser shall have the
          right to have an inspection made at its sole cost and expense within fifteen
          (15) days of the date of execution of this contract to determine whether or not
          the storage tank is leaking. In the event any hazardous material is leaking or
          there is evidence of the emission of any hazardous gas or material, the
          Purchaser or Purchaser&#146;s attorney must notify the Seller immediately upon
          receipt of the reports of same. Seller will, within seven (7) days, notify the
          Purchaser, in writing, whether the Seller will, at its own cost and expense,
          remedy and repair same within 30 days of being notified in writing of the
          condition or to declare this contract null and void and return all deposit
          monies to Purchaser. In the event that the Property has an abandoned
          above-ground oil tank, it shall be Seller&#146;s responsibility to remove the
          tank prior to closing. </FONT></P>

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     <P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
          <U>Underground Storage Tank Matter</U>. This contract shall be subject to the
          Purchaser, through its environmental engineer, reviewing the entire file under
          NJDEP Case No. 94-07-22-1006 (related to the investigation, removal and
          remediation of a leaking underground storage tank at the Property) (hereinafter
          &#147;UST Matter&#148;). Purchaser acknowledges that NJDEP has not yet issued
          Seller a No Further Action Letter/Covenant Not to Sue (&#147;NFA Letter&#148;)
          with regard to the UST Matter. As a result of its investigation and inquiry into
          the UST Matter, Purchaser may, within 60 days of the date of this contract,
          cancel the contract and receive a full refund of the contract deposit if it is
          determined that the existing environmental condition of the Property will in
          anyway impact upon or affect the development of a residential multifamily
          development, in any way. Seller shall provide or make available for inspection a
          copy of all documents and reports prepared by, or on behalf of the Seller
          related to the UST Matter. </FONT></P>

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     <P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Post Closing Environmental</U>. If Purchaser elects to proceed with the
          purchase of the Property after reviewing the UST Matter, then the following
          shall apply: </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;
(i)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Seller&#146;s
Environmental Work</U>.&nbsp;&nbsp;&nbsp;&nbsp;Seller shall, post closing, undertake           the investigation
and remediation of the UST Matter (and any outstanding ISRA           compliance issues,
if applicable) in accordance with NJDEP Technical           Regulations, N.J.A.C. 7:1E
et. seq. and provide Purchaser with an unconditional           NFA Letter from NJDEP for
the UST Matter (and any outstanding ISRA compliance           issues, if applicable) as
soon as practicable. (Hereinafter, Seller&#146;s           Environmental Work.&#148;).
Seller may undertake Seller&#146;s Environmental           Work, subject to such
conditions as NJDEP may approve, including the use of           engineering controls,
institutional controls, classification exception area           waivers, restricted
remediation standards and the like, evidencing that the           remediation of the UST
Matter (and any outstanding ISRA compliance issues, if           applicable) have been
completed to the satisfaction of the NJDEP, so long as           NJDEP does not preclude
Purchaser&#146;s use of the Property for residential           purposes. Seller shall
have final decision-making authority with regard to all           investigation and
remediation plans submitted by Seller to NJDEP.  </FONT></P>

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<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>5 </FONT></P>

<DIV STYLE="page-break-after:always"></DIV>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Purchaser shall accept all
investigation and remediation approvals provided by NJDEP, as long as NJDEP does not
preclude the construction of residential units on the Property. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;(ii)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Access</U>.&nbsp;&nbsp;&nbsp;&nbsp;
After Closing, Purchaser shall permit Seller and Seller&#146;s           consultants and
representative access to the Property at any reasonable time to           undertake Seller&#146;s
Environmental Work<B>. </B>Seller or Seller&#146;s           agents or representatives
shall provide Purchaser with a certificate of           insurance.  </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;(iii)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Copies
of Documents</U>.&nbsp;&nbsp;&nbsp;&nbsp;Seller shall provide Purchaser with copies of all
          correspondence, reports, laboratory data and other documents submitted to and
          received from NJDEP with regard to Seller&#146;s Environmental Work.  </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;(iv)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Cooperation</U>.&nbsp;&nbsp;&nbsp;&nbsp;
Seller shall consult with and obtain input from Purchaser           with regard to Seller&#146;s
Environmental Work prior to submitting proposals to           NJDEP. The parties shall
work cooperatively so that Seller&#146;s Environmental           Work and Purchaser&#146;s
redevelopment can proceed forward without one           unreasonably impacting the other.
Purchaser shall execute any and all documents,           as may be reasonably requested
by Seller for Seller to undertake its           Environmental Work, including permits,
licenses and other approvals, and avoid           interfering with or impeding the
performance of the sampling, monitoring,           remediation and the other aspects of
Seller&#146;s Environmental Work.  </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;(v)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Waiver
and Release</U>.&nbsp;&nbsp;&nbsp;&nbsp;Upon Purchaser&#146;s receipt of an unconditional NFA           Letter
for the UST Matter (and any outstanding ISRA compliance issues, if           applicable),
Purchaser shall release Seller and its partners, agents and           predecessors in
title (collectively &#147;Released Parties&#148;) from, and to           waive as against
the Released Parties, all claims of liability for or attributed           to any
environmental condition of the Property, including without limitation any           claim
or lawsuit under any local, state or federal law, rule, ordinance or           regulation
relating to environmental contamination or other environmental           matters and any
consequential, incidental or punitive damages, natural resource           damages or for
diminution in property value or lost profits.  </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;(vi)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Indemnity</U>.&nbsp;&nbsp;&nbsp;&nbsp;
Upon Purchaser&#146;s receipt of an unconditional NFA letter,           Purchaser shall
indemnify, defend, protect and hold the Released Parties           harmless from and
against any claims, actions, suits, judgments causes of           action, demands,
damages, liabilities, costs (including attorneys&#146; fees),           charges or
expenses, or the filing of any lien filed or recorded against the           Property
imposed upon, incurred by or asserted against the Released Parties,           directly or
indirectly arising from or in any way relating to compliance or           non-compliance
with environmental laws, the presence of hazardous substances or           natural
resource damages and any personal injury, wrongful death, or property           damage or
other damage arising under any statutory or common law or tort law           theory
arising in connection with the Property.  </FONT></P>

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     <P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;
(e)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
          The obligation of the Seller and Purchaser regarding the environmental
          conditions shall survive closing of title. </FONT></P>

<!-- MARKER FORMAT-SHEET="Head Sub 3 Left" FSL="Default" -->
<P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;1.09.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U><A NAME="due">Due Diligence</A></U>.</B> </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(A)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;          (a)
The parties acknowledge that Purchaser intends to construct a residential
          multifamily building consisting of 150 residential units (the           &#147;Project&#148;).
As a condition precedent  </FONT></P>

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<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>6</FONT></P>

<DIV STYLE="page-break-after:always"></DIV>




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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>to Purchaser&#146;s obligation to
close title hereunder (the &#147;Governmental Approvals Contingency&#148;), Purchaser
shall obtain, on or before December 15, 2007 (the &#147;Governmental Approvals
Period&#148;) all Governmental Approvals required for the construction of the Project and
the appeal period shall have expired. </FONT></P>

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     <P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(B)&nbsp;(b) In the event Purchaser is unable to obtain the Governmental Approvals in
          accordance with this Section, Purchaser&#146;s remedy shall be (a) to serve a
          Termination Notice or (b) to waive the governmental approvals contingency and
          proceed to a closing. </FONT></P>

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     <P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(C)&nbsp;(c) All costs and expenses in connection with the Plans and the Governmental
          Approvals, including, without limitation, all fees and costs of the
          Professionals, applications and filing fees, and administrative fees and costs,
          and including any fees and costs incurred by (collectively, the &#147;Approval
          Costs&#148;), shall be the sole responsibility of the Purchaser. In the event
          Purchaser terminates this Agreement, then Purchaser shall deliver to Seller, at
          no cost or expense, all Plans, applications for development, reports, studies
          and all other materials prepared for or on behalf of Purchaser relating to the
          Government Approvals. </FONT></P>

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     <P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(D)&nbsp;(d) Purchaser shall use all commercially reasonable efforts to make written
          application for any other Governmental Approvals as soon as practical. </FONT></P>

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     <P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(E)&nbsp;(e) Upon the Purchaser&#146;s receipt of the Governmental Approvals, the
          Governmental Approvals Period shall be deemed to have expired and this
          Governmental Approvals Contingency shall be null and void, and Purchaser shall
          proceed to Closing in accordance with this Agreement. </FONT></P>

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     <P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(F)&nbsp;(f) Purchaser may waive this Governmental Approval Contingency at any time by
          giving Seller written notice to that effect. In the event Purchaser so waives
          the Governmental Approval Contingency, the parties shall immediately proceed to
          Closing pursuant to the terms of this Agreement. </FONT></P>

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     <P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(g)&nbsp;&nbsp;&nbsp;Seller shall cooperate with, and assist Purchaser in connection with its pursuit
          of the Governmental Approvals in all respects including, without limitation,
          executing any and all documents necessary or desirable to permit Purchaser to
          apply for and pursue the Governmental Approvals. </FONT></P>

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     <P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(h)&nbsp;&nbsp;&nbsp;Anything in this Agreement to the contrary notwithstanding, Purchaser shall
          petition the Governing Body of West New York, New Jersey to rezone the Property
          to permit development and use of not less than 150 residential dwelling units on
          the Property. </FONT></P>

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     <P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;<B>1.10.</B>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
          <B><U><A NAME="purchaseredemption">Purchaser Representation.</A> </U></B><U></U>Purchaser represents that it has
          sufficient cash to fulfill its obligations hereunder. </FONT></P>

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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>2.</B>  </FONT></TD>
<TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B><U>TITLE
AND CONDITION OF PREMISES</U>.</B></FONT></TD>
</TR>
</TABLE>
<BR>

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     <P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;<B>2.01.</B>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
          <B><U><A NAME="stateoftitle">State of Title</A></U>.</B>&nbsp;&nbsp;&nbsp;&nbsp;Title to the Premises shall be as the title
          insurance company authorized to transact business in the State of New Jersey
          which is selected by Purchaser shall be willing to insure on its standard form
          and at standard rates, such title to be </FONT></P>

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<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>7 </FONT></P>

<DIV STYLE="page-break-after:always"></DIV>





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<P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>subject to (i) all
standard exclusions, conditions and stipulations set forth
in the ALTA 1987 Owner&#146;s Standard Form B policy of title insurance; (ii) those
easements, covenants, restrictions, encumbrances and rights-of-way of record affecting the
Premises as of the date hereof;(iii) encroachments and all other matters existing as of
the date hereof that would be disclosed by a current and accurate survey of the property;
(iv) liens for taxes and assessments not yet due and payable; (v) easements for public
utilities affecting the Property as of the date hereof; and (vi) any Environmental Access
Agreement, including all amendments, declaration of environmental restriction, deed
notice, notice of classification exception area (&#147;CEA&#148;), institutional controls
or engineering controls, or both (including CEA&#146;s) now of record or as may be amended
or added consistent with the ISRA Approvals; and (vii) existing tenancies as set forth on
<U>Exhibit &#147;B&#148; </U>(collectively, &#147;Permitted Title Exceptions&#148;).
Permitted Title Exceptions shall also be deemed to include: (x) applicable zoning
ordinances, (y) liens or encumbrances to be satisfied by Seller at or before Closing, and
(z) those matters, if any, which are waived by Purchaser pursuant to this Paragraph 2.01.
Nothing in the title shall prevent or prohibit the redevelopment of the Property for the
intended housing Project. Seller shall provide a copy of any title policy it may have in
its possession for review by the Purchaser as soon as practicable following the full
execution of this contract. </FONT></P>

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     <P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;<B>2.02.</B>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
          <B><U><A NAME="objections">Objections to Title</A></U>.</B>&nbsp;&nbsp;&nbsp;&nbsp;Purchaser shall obtain a commitment for title
          insurance and the requisite searches by no later than June 30, 2007. If
          Purchaser finds, upon examination of title, any defects which actually render
          title such that Seller cannot convey title as provided in Section 2.01, then
          Purchaser shall notify Seller by July 11, 2007. The notice from Purchaser to
          Seller shall describe each such objection or defect and shall be accompanied by
          a copy of Purchaser&#146;s commitment for title insurance. Seller shall have
          thirty (30) days to remove all such objections or defects. In the event that
          Seller fails or is unable to remove such objection or defects within the said
          thirty (30) day period then Purchaser may elect to accept such title as Seller
          is able to convey, or at Purchaser&#146;s sole option, cancel the contract and
          receive a full refund of the contract deposit and reimbursement for al actual
          title costs incurred by the Purchaser. At the sole option of Seller, Seller may
          use any portion of the Purchase Price on the Closing Date to pay or discharge
          any liens or encumbrances that would otherwise not be Permitted Title
          Exceptions, provided Seller shall simultaneously deliver to Purchaser at Closing
          instruments in recordable form and sufficient to satisfy such liens or
          encumbrances of record, together with the cost of recording or filing said
          instruments. As an alternative, Seller may deposit sufficient monies with the
          Title Company acceptable to and required by it to assure their discharge, but
          only if the Title Company will insure Purchaser&#146;s title to the Property
          clear of such matter or insure against their enforcement against title to the
          Property. </FONT></P>

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     <P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;<B>2.03.</B>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
          <B><U><A NAME="assessments">Assessments</A></U>.</B>&nbsp;&nbsp;&nbsp;&nbsp;If at the closing, the Premises or any part thereof
          shall be or shall have been affected by an assessment or assessments which are
          or may become payable in annual installments, then for the purposes of this
          Agreement all the unpaid installments of any such assessment, including those
          which are to due and payable on the date of Closing, shall be deemed to be due
          and payable by Purchaser and shall not be considered as liens upon the Premises.
          All unpaid installments shall be paid and discharged by the Purchaser upon the
          delivery of the deed. Unconfirmed improvements or assessments, if any, shall be
          paid by the Purchaser. </FONT></P>

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<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>8</FONT></P>

<DIV STYLE="page-break-after:always"></DIV>

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     <P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;<B>2.04.</B>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
          <B><U><A NAME="conditionofpremises">Condition of Premises</A></U>.</B>&nbsp;&nbsp;&nbsp;&nbsp;The Premises are to be conveyed to and
          accepted by the Purchaser in their &#147;as is&#148; condition as of the date of
          Closing. Seller shall have no obligation to repair, maintain or restore any
          portion or all of the Improvements. </FONT></P>

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     <P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;<B>2.05.</B>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
          <B><U><A NAME="acceptanceofdeed">Acceptance of the Deed.</A></U></B><U></U>&nbsp;&nbsp;&nbsp;&nbsp;Except to the extent which may be
          stated elsewhere in this agreement, if at all, the acceptance of the Deed by the
          Purchaser shall constitute a waiver by Purchaser of any and all defects,
          exceptions, and objections which Purchaser may thereafter claim or assert with
          respect to matters of the title regardless of whether or not either Seller or
          Purchaser had knowledge of the same. The provisions of this Paragraph 2.05 shall
          survive Closing. </FONT></P>

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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>3.</B>  </FONT></TD>
<TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B><U>MISCELLANEOUS
PROVISIONS RELATING TO CLOSING</U>.</B></FONT></TD>
</TR>
</TABLE>
<BR>

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     <P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;<B>3.01.</B>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
          <B><U><A NAME="riskofloss">Risk of Loss</A></U>.</B>&nbsp;&nbsp;&nbsp;&nbsp;Risk of loss by fire or other casualty shall be
          borne by Seller until closing of title. </FONT></P>

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     <P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;<B>3.02.</B>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
          <B><U><A NAME="intentomit">Intentionally Omitted.</A></U></B> </FONT></P>

<!-- MARKER FORMAT-SHEET="Para (List) Indent" FSL="Default" -->
     <P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;<B>3.03.</B>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
          <B><U><A NAME="brokers">Brokers</A></U>.</B>&nbsp;&nbsp;&nbsp;&nbsp;Each party warrants and represents to the other that no
          broker has been involved in this transaction or shown the Purchaser the Premises
          or called the Premises to the Purchaser&#146;s attention other than Robert De
          Ruggiero, Inc., Realtors (the &#147;Broker&#148;). Each party shall indemnify
          and hold harmless the other against any liability which the other is obligated
          to discharge to or defend against any undisclosed broker wholly or partly
          because of the indemnifying party&#146;s relations with such undisclosed broker
          or his representative, together with all reasonable legal expenses and costs of
          the other necessitated in connection therewith. Purchaser shall be responsible
          for the real estate commission payable to the Broker in accordance with an
          agreement to be entered into between the Purchaser and the Broker. </FONT></P>

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     <P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;<B>3.04.</B>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
          <B><U><A NAME="condemnation">Condemnation</A></U>.</B>&nbsp;&nbsp;&nbsp;&nbsp;Seller represents that it has no notice of any
          condemnation or eminent domain proceeding against the Premises. If, on or before
          closing, any condemning authority notifies Seller of its intention to commence
          any proceedings whatsoever or if such proceedings are actually commenced then
          Seller shall immediately notify Purchaser in writing and Purchaser shall have
          the right to terminate this Agreement upon written notice to Seller, at which
          time Purchaser shall be entitled to a refund of the entire deposit, with
          interest, and this Agreement shall become null and void. If Purchaser does not
          terminate this Agreement, then Seller agrees that it will not negotiate with nor
          settle any claim for condemnation proceeds and will not incur any expenses which
          will be payable either by Purchaser or out of the condemnation proceeds. All
          such matters shall be referred to Purchaser by Seller. </FONT></P>

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     <P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;<B>3.05.</B>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
          <B><U><A NAME="servicecontracts">Service Contracts</A></U>.</B>&nbsp;&nbsp;&nbsp;&nbsp;Seller represents that there are no service
          contracts in force with respect to the Premises which will survive the Closing. </FONT></P>

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<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>9 </FONT></P>

<DIV STYLE="page-break-after:always"></DIV>

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<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>4.</B>  </FONT></TD>
<TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B><U>MISCELLANEOUS</U>.</B>  </FONT></TD>
</TR>
</TABLE>
<BR>

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     <P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;<B>4.01.</B>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
          <B><U><A NAME="notice">Notices</A></U>.</B>&nbsp;&nbsp;&nbsp;&nbsp;All notices authorized or required herein shall be in
          writing and shall be considered given when sent by certified mail, return
          receipt requested, or by a recognized overnight delivery service, return receipt
          requested, to the other party at their respective address set forth below: </FONT></P>


<TABLE WIDTH="50%" CELLPADDING="0" CELLSPACING="0" ALIGN="CENTER">
<TR VALIGN="TOP">
     <TD WIDTH="50%" ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">As to Seller:<BR>
<BR>
<BR>
<BR>
<BR>
With a Copy to:<BR>
<BR>
<BR>
</FONT></TD>
     <TD WIDTH="50%" ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">JACLYN, Inc.<BR>
197 West Spring Valley Avenue<BR>
Maywood, New Jersey 07607<BR>
Attention: Mr. Robert Chestnov, President<BR>
<BR>
Philip D. Neuer, Esq.<BR>
Philip D. Neuer, P.C.<BR>
1875 McCarter Highway<BR>
Newark, New Jersey 07104</FONT></TD></TR>
</TABLE>




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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>and </FONT></P>

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<TR VALIGN="TOP">
     <TD WIDTH="50%"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">As to Purchaser:<BR>
<BR>
<BR>
<BR>
<BR>
<BR>
With a Copy to:<BR>
<BR>
<BR>
</FONT></TD>
     <TD WIDTH="50%"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">5801 Jefferson Street, LLC<BR>
Attn: Rolando Cribeiro<BR>
224 61st Street<BR>
West New York, New Jersey 07093<BR>
<BR>
<BR>
J. Alvaro Alonso, Esq.<BR>
Alonso &amp; Navarrete, LLC<BR>
6121 Kennedy Boulevard<BR>
North Bergen, NJ 07047<BR>
</FONT></TD></TR>
</TABLE>

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     <P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;<B>4.02.</B>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
          <B><U><A NAME="consent">Consent</A></U>.</B>&nbsp;&nbsp;&nbsp;&nbsp;Wherever in this Agreement the consent of either party is
          required, such consent shall be neither unreasonably withheld nor unduly delayed
          nor conditioned upon any other act, omission or event. </FONT></P>

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     <P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;<B>4.03.</B>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
          <B><U><A NAME="construction">Construction</A></U>.</B>&nbsp;&nbsp;&nbsp;&nbsp;This Agreement shall be construed in accordance with
          the laws of the State of New Jersey. </FONT></P>

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     <P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;<B>4.04.</B>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
          <B><U><A NAME="comagrement">Complete Agreement</A></U>.</B>&nbsp;&nbsp;&nbsp;&nbsp;This Agreement represents the complete
          understanding between the parties hereto and supersedes all prior negotiations,
          representations, or agreements, whether written or oral, as to the transaction
          described herein. This Agreement may be amended only by written instrument
          signed by both parties. </FONT></P>

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     <P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;<B>4.05.</B>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
          <B><U><A NAME="waiver">Waiver</A></U>.</B>&nbsp;&nbsp;&nbsp;&nbsp;No requirement, obligation, remedy or provision of this
          Agreement shall be deemed to have been waived, unless so waived expressly in
          writing, and any such waiver of any such provision shall not be considered a
          waiver of any right to enforce such provision thereafter. </FONT></P>

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<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>10</FONT></P>

<DIV STYLE="page-break-after:always"></DIV>

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     <P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;<B>4.06.</B>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
          <B><U><A NAME="bindingeffect">Binding Effect</A></U>.</B>&nbsp;&nbsp;&nbsp;&nbsp;The covenants, agreements and conditions herein
          contained shall inure to the benefit of and bind the parties hereto and their
          respective successors, legal representatives, and assigns. </FONT></P>

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     <P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;<B>4.07.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
          </B> <B><U><A NAME="exchange">1031 Exchange</A></U>.</B>&nbsp;&nbsp;&nbsp;&nbsp;Either Seller or Purchaser may elect to have
          the sale of the Property pursuant to this Agreement comprise part of a like-kind
          exchange under Section 1031 of the Internal Revenue Code. Each party agrees to
          cooperate with the other, at the expense of the requesting party, in any way
          reasonably necessary to effectuate or facilitate such like-kind exchange. In
          connection therewith, Purchaser further consents to the transfer of the Property
          by Seller to an Exchange Accommodations Titleholder or such similar entity prior
          to the conveyance of the Property to Purchaser hereunder. Such entity may act as
          the intermediary for Seller in connection with the transfer of the Property to
          Purchaser. </FONT></P>

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     <P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;<B>4.08.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
          <U><A NAME="assignment">Assignment</A></U>.</B>&nbsp;&nbsp;&nbsp;&nbsp;Purchaser shall not assign this Agreement or any rights
          hereunder without the prior written consent of Seller, said consent not to be
          unreasonably withheld, conditioned or delayed; provided, however, that Purchaser
          shall have the absolute right to assign its rights under this Agreement at the
          time of the Closing to a corporation, limited liability company or general or
          limited partnership in which Purchaser is a majority owner. </FONT></P>

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     <P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;<B>4.09.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
          <U><A NAME="records">Seller&#146;s Right to Store Records After Closing</A></U></B><U></U>.&nbsp;&nbsp;&nbsp;&nbsp;Anything
          to the contrary elsewhere in this Agreement to the contrary notwithstanding,
          Purchaser grants to Seller the right, at no cost or expense to Seller, to
          utilize approximately five thousand (5,000) square feet of space in the area
          where Seller and its related companies are presently storing records. This right
          may be terminated upon not less than thirty (30) days advance written notice [as
          if this were a tenancy from month-to-month commencing on the first day of each
          month] from Purchaser to Seller in accordance with the above Notice Provisions. </FONT></P>

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     <P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;<B>4.10.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
          <U><A NAME="installbanner">Purchaser&#146;s Right to Install Banner.</A></U></B><U></U>&nbsp;&nbsp;&nbsp;&nbsp;Purchaser&#146;s
          related entity owns property immediately to the south of the Property. Seller
          grants to Purchaser the right to install a banner on the south fa&ccedil;ade of
          Seller&#146;s building at any time for the purpose of advertising the proposed
          development of that property. This right is given at no cost or expense to
          Purchaser, other than the cost of the banner and its installation. If this
          Agreement is terminated for any reason, then Purchaser shall remove the banner
          and restore the Property not more than ten (10) days following such termination. </FONT></P>

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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>5.</B>  </FONT></TD>
<TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B><U>DEFAULTS</U>.</B>  </FONT></TD>
</TR>
</TABLE>
<BR>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;<B>5.01</B>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<B><U><A NAME="defpurchaser">Default by Purchaser</A></U></B><U></U>.&nbsp;&nbsp;&nbsp;&nbsp;Seller may terminate this Agreement by notice
to Purchaser at any time prior to the Closing Date in the event of a material default by
Purchaser under this Agreement [which remains uncured for twenty (20) business days after
Seller&#146;s notice to Purchaser thereof, unless such default cannot be cured by the
payment of money and cannot with due diligence be wholly cured within such twenty (20) day
period, in which case Purchaser shall have such longer period as shall be reasonably
necessary to cure such default, so long as Purchaser proceeds promptly to cure such
default within such twenty (20) day period and </FONT></P>

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<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>11</FONT></P>

<DIV STYLE="page-break-after:always"></DIV>




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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>prosecutes such cure to completion
with due diligence] or a material breach of any representation or warranty by Purchaser
expressly set forth in this Agreement. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;<B>5.02</B>
<B><U><A NAME="defseller">Default by Seller</A></U></B><U></U>.&nbsp;&nbsp;&nbsp;&nbsp;Purchaser may terminate this Agreement by notice
to Seller at any time prior to the Closing Date in the event of a material default by
Seller under this Agreement [which remains uncured for twenty (20) business days after
Purchaser&#146;s notice to Seller thereof, unless such default cannot be cured by the
payment of money and cannot with due diligence be wholly cured within such twenty (20) day
period, in which case Seller shall have such longer period as shall be reasonably
necessary to cure such default, so long as Seller proceeds promptly to cure such default
within such twenty (20) day period and prosecutes such cure to completion with due
diligence within sixty days] or a material breach of any representation or warranty by
Seller expressly set forth in this Agreement. </FONT></P>

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<P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>
&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;5.03&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<U><A NAME="remedies">Remedies.</A></U></B> </FONT></P>

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     <P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
          <U>By Seller</U>. If Seller fulfills its obligations hereunder but Purchaser
          materially defaults under this Agreement beyond any applicable cure period, or
          materially breaches any representation or warranty contained herein, Seller
          shall, at its sole and exclusive remedy hereunder, have the right to terminate
          this Agreement and receive the Deposit, together with all interest earned
          thereon, and such payment shall constitute and be liquidated and agreed damages,
          whereupon the parties hereto shall be relieved of any further liability or
          obligation to each other, it being expressly understood that the retention of
          the Deposit shall be the sole and exclusive right and remedy of Seller, and
          constitutes a fair and reasonable amount for the damage sustained by Seller by
          reason of Purchaser&#146;s breach of Agreement. Sellers hereby waive and release
          any right to seek specific performance, or to file and other legal action,
          against Purchaser. </FONT></P>

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     <P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
          <U>By Purchaser</U>. If Purchaser fulfills its obligations hereunder, but Seller
          defaults under this Agreement beyond any applicable cure period, or materially
          breaches any representation or warranty contained herein, Purchaser shall be
          entitled to seek specific performance as its sole remedy. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;IN
WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed as of the
day and year first written above. </FONT></P>


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<TR VALIGN="TOP">
     <TD WIDTH="50%"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;<BR>
<BR>
<BR>
<BR>
<BR>
<BR>
<BR>
<BR>
<BR>
<BR>
<BR>
<BR>
</FONT></TD>
     <TD WIDTH="50%"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">JACLYN, Inc., Seller<BR>
<BR>
<BR>
<BR>
By: <U>/s/ Robert Chestnov</U><BR>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Robert Chestnov, President<BR>
<BR>
5801 Jefferson Street, LLC, Purchaser<BR>
<BR>
<BR>
<BR>
By: <U>/s/ Rolando Cribeiro</U><BR>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Rolando Cribeiro, Managing member<BR>
</FONT></TD></TR>
</TABLE>


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<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>12</FONT></P>

<DIV STYLE="page-break-after:always"></DIV>

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<H1 ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=3>EXHIBIT &#147;A&#148; </FONT></H1>

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<H1 ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=3><U>DOCUMENTS TO BE
DELIVERED BY SELLER AT CLOSING</U> </FONT></H1>

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     <P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;1.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
          Bargain and Sale Deed with Covenants against Grantor&#146;s Acts. </FONT></P>

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     <P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;2.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
          Affidavit of Title. </FONT></P>

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     <P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;3.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
          Assignment of Landlord Interests in Leases </FONT></P>

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     <P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;4.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
          FIRPTA Affidavit. </FONT></P>

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     <P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;5.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
          Such other documents and instruments as Purchaser or its title insurer may
          reasonably request in order to perfect title in Purchaser consistent with the
          terms and conditions and otherwise to carry out the purposes of this Agreement. </FONT></P>

<DIV STYLE="page-break-after:always"></DIV>

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<P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B><U>Exhibit &#147;B&#148;</U> - List of Tenancies</B> </FONT></P>

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     <P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;1.&nbsp;&nbsp;&nbsp;&nbsp;Stylecrest Fabrics, LTD.<BR>
&nbsp;&nbsp;&nbsp;&nbsp;2.&nbsp;&nbsp;&nbsp;&nbsp;On the Mark, Inc. <BR>
&nbsp;&nbsp;&nbsp;&nbsp;3.&nbsp;&nbsp;&nbsp;&nbsp;Pisces Sports, Inc. </FONT></P>



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<TYPE>EX-99
<SEQUENCE>4
<FILENAME>ex99_01-f8k062107.htm
<DESCRIPTION>PRESS RELEASE DATED JUNE 21, 2007
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<P ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2><U><B><A NAME="ex99_01">Exhibit 99.01</A></B></U></FONT></P>

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<P ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>NEWS</B> </FONT></P>

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<P ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Company Contact: Anthony
Christon<BR>Chief Financial Officer<BR>Jaclyn, Inc.<BR>
(201) 909-6000</FONT></P>

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<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2><U>JACLYN, INC.
ANNOUNCES AGREEMENT<BR>FOR THE SALE OF
OFFICE AND WAREHOUSE FACILITY</U></FONT></P>

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<P ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2><U>FOR IMMEDIATE RELEASE</U> </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Maywood, NJ, June 21,
2007....................Jaclyn, Inc. (AMEX:JLN) today announced that it has entered into
an agreement for the sale of the Company&#146;s former executive office and warehouse
facility, as well as two adjacent lots, located in West New York, New Jersey. As
previously announced, Jaclyn recently moved its executive offices from West New York to
new leased premises located in Maywood, New Jersey. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>The proposed purchase price is
$8,000,000, the substantial portion of which is payable at closing. The closing of the
sale is scheduled for October 15, 2007, although the proposed purchaser has the right to
extend the closing date for two separate 4-month periods, in each case upon payment of an
extension fee. The proposed purchaser also has the right, for a 60-day period after the
agreement date, to terminate the agreement under certain circumstances based on its
environmental due diligence of the properties to be sold. The closing is contingent on the
proposed purchaser&#146;s receipt of governmental approvals required for the construction
of residential, multi-family housing consisting of 150 residential units, as well as a
number of other contingencies and conditions, including the receipt of acquisition and
construction loan commitments. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>The Company noted that since the
proposed transaction is subject to a number of conditions and contingencies, including the
receipt of required governmental approvals, there is no assurance that a sale of the
property will be concluded. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B><I>Note</I></B><I></I>: This press
release may contain forward-looking statements that are being made pursuant to the safe
harbor provisions of the Private Securities Litigation Reform Act of 1995. The
Company&#146;s actual performance and results may vary as a result of a number of risks,
uncertainties and other factors, both foreseen and unforeseen, including general economic
and business conditions, competition in the accessories and apparel markets, continuing
favorable sales patterns, pricing and consumer buying trends. </FONT></P>

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     <P ALIGN=CENTER>*&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*</P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2><I>Jaclyn,  Inc. is a designer,
 manufacturer  and marketer of apparel,  women's  sleepwear,  infants' and  children's
apparel, handbags, premiums and related accessories.</I> Our web site is at <U>www.jaclyninc.com.</U></FONT></P>


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