Exhibit 10.2
 
 
PROMISSORY NOTE
(Commercial - Single Advance)
 

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DATE AND PARTIES. The date of this Promissory Note (this “Note”) is ________
___, 2007. The parties and their addresses are:

LENDER:

NORTHEAST COMMUNITY BANK
325 Hamilton Avenue
White Plains, New York 10601

BORROWER:

MJ 1353-1355 FIRST AVENUE, LLC
c/o Wellington Real Estate, Inc.
403 Fairview Avenue
Westwood, NJ 07675

1. DEFINITIONS. As used in this Note, the terms have the following meanings:

A. Pronouns. The pronouns “I,” “me,” and “my” refer to each Borrower signing
this Note, individually and together with their heirs, successors and assigns,
and each other person or legal entity (including guarantors, endorsers, and
sureties) who agrees to pay this Note. “You” and “Your” refer to the Lender,
with its participants or syndicators, successors and assigns, or any person or
company that acquires an interest in the Loan.

B. Note. Note refers to this document, and any extensions, renewals,
modifications and substitutions of this Note.

C. Loan. Loan refers to this transaction generally, including obligations and
duties arising from the terms of all documents prepared or submitted for this
transaction such as applications, security agreements, disclosures or notes, and
this Note.

D. Percent. Rates and rate change limitations are expressed as annualized
percentages.

Any other capitalized terms used herein, but not defined herein, shall have the
meanings ascribed to them in the certain Agreement of Sale dated December ___,
2006, between the Lender and the Borrower.

2. PROMISE TO PAY. For value received, I promise to pay you or your order, at
your address, or at such other location as you may designate, the principal sum
of $18,000,000.00 (Principal) in accordance with the terms provided for herein
until this Note matures or this obligation is accelerated.
 
 

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3. REMEDIAL CHARGES. If a payment is more than 10 days late, I will pay a
remedial charge of 5.000 percent of the Unpaid Portion of Payment, plus an
additional 1.000 percent of the Unpaid Portion of Payment for each month that
such payment remains unpaid.

4. PAYMENT. I agree to pay this Note in 2 payments. A payment of $9,000,000 will
be due one (1) year following the date of this Note, and a payment of $9,000,000
will be due two (2) years following the date of this Note.

5. PREPAYMENT. I may prepay this Loan in full or in part at any time. Any
partial prepayment will not excuse any later scheduled payments until I pay in
full.

6. LOAN PURPOSE. The purpose of this Loan is to finance a portion of the
Purchase Price for the premises located at 1353-1355 First Avenue, NY, NY (the
“Premises”) in the total purchase amount of $28,000,000.00.

7. SECURITY. This Loan is secured by that certain Purchase Money Real Estate
Mortgage, Assignment, and Security Agreement (the “Mortgage”) of even date
herewith between the Borrower and the Lender and represents a mortgage lien held
by Lender on the Premises..

8. DEFAULT. I will be in default if any of the following occur:

A. Payments. I fail to make a payment in full when due.

B. Insolvency. I make an assignment for the benefit of creditors or become
insolvent, either because my liabilities exceed my assets or I am unable to pay
my debts as they become due.

C. Business Termination. I merge, dissolve, reorganize, end my business or
existence (except as specifically permitted in the Mortgage), or a partner or
majority owner dies or is declared legally incompetent.

D. Failure to Perform. I fail to perform any condition or to keep any promise or
covenant of this Note.

E. Other Agreements. I am in default on any other debt or agreement I have with
you.

F. Misrepresentation. I make any verbal or written statement or provide any
financial information that is untrue, inaccurate, or conceals a material fact at
the time it is made or provided.

G. Judgment. I fail to satisfy or appeal any judgment against me.

H. Forfeiture. The Property is used in a manner or for a purpose that threatens
confiscation by a legal authority.
 

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I. Name Change. I change my name or assume an additional name without notifying
you before making such a change.

J. Property Transfer. I transfer all or a substantial part of my money or
property.

K. Property Value. The value of the Property declines or is impaired.

L. Material Change. Without first notifying you, there is a material change in
my business, including ownership, management, and financial conditions (except
as specifically permitted in the Mortgage).

11. ASSUMPTIONS. Someone buying the Property cannot assume the obligation unless
consented to by Lender. You may declare the entire balance of the Note to be
immediately due and payable upon the creation of, or contract for the creation
of, any lien, encumbrance, or transfer of the Property.

12. WAIVERS AND CONSENT. To the extent not prohibited by law, I waive protest,
presentment for payment, demand, notice of acceleration, notice of intent to
accelerate and notice of dishonor.

A. Additional Waivers By Borrower. In addition, I, and any party to this Note
and Loan, to the extent permitted by law, consent to certain actions you may
take, and generally waive defenses that may be available based on these actions
or based on the status of a party to this Note.

(1) You may renew or extend payments on this Note, regardless of the number of
such renewals or extensions.

(2) You may release any Borrower, endorser, guarantor, surety, accommodation
maker or any other co-signer.

(3) You may release, substitute or impair any Property securing this Note.

(4) You, or any institution participating in this Note, may invoke your right of
set-off.

(5) You may enter into any sales, repurchases or participations of this Note to
any person in any amounts.

(6) I agree that any of us signing this Note as a Borrower is authorized to
modify the terms of this Note or any instrument securing or relating to this
Note.

B. No Waiver By Lender. Your course of dealing, or your forbearance from, or
delay in, the exercise of any of your rights, remedies, privileges or right to
insist upon my strict performance of any provisions contained in this Note, or
other Loan documents, shall not be construed as a waiver by you, unless any such
waiver is in writing and is signed by you.
 

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13. REMEDIES. After I default, and after you give any legally required notice
and reasonable opportunity to cure the default, you may at your option do any
one or more of the following.

A. Acceleration. You may make all or any part of the amount owing by the terms
of this Note immediately due.

B. Sources. You may use any and all remedies you have under state or federal law
or in any instrument securing this Note.

C. Insurance Benefits. You may make a claim for any and all insurance benefits
or refunds that may be available on my default.

D. Payments Made On My Behalf. Amounts advanced on my behalf will be immediately
due and may be added to the balance owing under the terms of this Note, and
accrue interest at the highest post-maturity interest rate.

E. Set-Off. You may use the right of set-off. This means you may set-off any
amount due and payable under the terms of this Note against any right I have to
receive money from you.

My right to receive money from you includes any deposit or share account balance
I have with you; any money owed to me on an item presented to you or in your
possession for collection or exchange; and any repurchase agreement or other
non-deposit obligation. “Any amount due and payable under the terms of this
Note” means the total amount to which you are entitled to demand payment under
the terms of this Note at the time you set-off.

Subject to any other written contract, if my right to receive money from you is
also owned by someone who has not agreed to pay this Note, your right of set-off
will apply to my interest in the obligation and to any other amounts I could
withdraw on my sole request or endorsement.

You will not be liable for the dishonor of any check when the dishonor occurs
because you set-off against any of my accounts. I agree to hold you harmless
from any such claims arising as a result of your exercise of your right of
set-off.

F. Waiver. Except as otherwise required by law, by choosing any one or more of
these remedies you do not give up your right to use any other remedy. You do not
waive a default if you choose not to use a remedy. By electing not to use any
remedy, you do not waive your right to later consider the event a default and to
use any remedies if the default continues or occurs again.

14. COLLECTION EXPENSES AND ATTORNEYS' FEES. On or after Default, to the extent
permitted by law, I agree to pay all reasonable expenses of collection,
enforcement or protection of your rights and remedies under this Note. Expenses
include, but are not limited to, reasonable attorneys' fees, court costs, and
other legal expenses. If not paid immediately, these
 

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expenses will bear interest from the date of the payment until paid in full at
the same interest rate in effect as provided in the terms of this Note. All fees
and expenses will be secured by the Property I have granted to you, if any. To
the extent permitted by the United States Bankruptcy Code, I agree to pay the
reasonable attorneys' fees you incur to collect this Debt as awarded by any
court exercising jurisdiction under the Bankruptcy Code.

15. WARRANTIES AND REPRESENTATIONS. I make to you the following warranties and
representations which will continue as long as this Note is in effect:

A. Power. I am duly organized, and validly existing and in good standing in all
jurisdictions in which I operate. I have the power and authority to enter into
this transaction and to carry on my business or activity as it is now being
conducted and, as applicable, am qualified to do so in each jurisdiction in
which I operate.

B. Authority. The execution, delivery and performance of this Note and the
obligation evidenced by this Note are within my powers, have been duly
authorized, have received all necessary governmental approval, will not violate
any provision of law, or order of court or governmental agency, and will not
violate any agreement to which I am a party or to which I am or any of my
Property is subject.

C. Name and Place of Business. Other than previously disclosed in writing to you
I have not changed my name or principal place of business within the last 10
years and have not used any other trade or fictitious name. Without your prior
written consent, I do not and will not use any other name and will preserve my
existing name, trade names and franchises.

16. INSURANCE. I understand and agree that any insurance premiums paid to
insurance companies as part of this Note will involve money retained by you or
paid back to you as commissions or other remuneration, subject to the rights of
any senior Lenders as the case may be.

A. Property Insurance. I will insure or retain insurance coverage on the
Property and abide by the insurance requirements of any security instrument
securing this Loan.

B. Insurance Warranties. I agree to purchase any insurance coverages that are
required, in the amounts you require, as described in this or any other
documents I sign for this Loan. I will provide you with continuing proof of
coverage. I will buy or provide insurance from a firm licensed to do business in
the State where the Property is located. If I buy or provide the insurance from
someone other than you, the firm will be reasonably acceptable to you. I will
have the insurance company name you as loss payee on any insurance policy. You
will apply the insurance proceeds toward what I owe you on the outstanding
balance. I agree that if the insurance proceeds do not cover the amounts I still
owe you, I will pay the difference. I will keep the insurance until all debts
secured by this agreement are paid.

C. Prepayment. If I prepay in full or if I default and you demand payment of the
unpaid balance, I may be entitled to a partial refund credit of any prepaid,
unearned insurance
 

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premiums. This refund may be obtained from you or from the insurance company
named in my policy or certificate of insurance.

17. APPLICABLE LAW. This Note and its validity, construction and performance
shall be governed in all respects by, and construed in accordance with, the laws
of the State of New York, without regard to conflicts of law principles. All
actions and proceedings arising out of or relating to this Agreement shall be
heard and exclusively determined in any New York state or federal court sitting
in the County of New York and the parties hereto hereby consent to the
jurisdiction of such courts in any such action or proceeding.

18. JOINT AND INDIVIDUAL LIABILITY AND SUCCESSORS. My obligation to pay this
Loan is independent of the obligation of any other person who has also agreed to
pay it. You may sue me alone, or anyone else who is obligated on this Loan, or
any number of us together, to collect this Loan. Extending this Loan or new
obligations under this Loan, will not affect my duty under this Loan and I will
still be obligated to pay this Loan. The duties and benefits of this Loan will
bind and benefit the successors and assigns of you and me.

19. AMENDMENT, INTEGRATION AND SEVERABILITY. This Note may not be amended or
modified by oral agreement. No amendment or modification of this Note is
effective unless made in writing and executed by you and me. This Note is the
complete and final expression of the agreement. If any provision of this Note is
unenforceable, then the unenforceable provision will be severed and the
remaining provisions will still be enforceable.

20. INTERPRETATION. Whenever used, the singular includes the plural and the
plural includes the singular. The section headings are for convenience only and
are not to be used to interpret or define the terms of this Note.

21. NOTICE, FINANCIAL REPORTS AND ADDITIONAL DOCUMENTS. Unless otherwise
required by law, any notice will be given by delivering it or mailing it by
first class mail to the appropriate party's address listed in the DATE AND
PARTIES section, or to any other address designated in writing. Notice to one
party will be deemed to be notice to all parties. I will inform you in writing
of any change in my name, address or other application information. I will
provide you any financial statement or information you request. All financial
statements and information I give you will be correct and complete. I agree to
sign, deliver, and file any additional documents or certifications that you may
reasonably consider necessary to perfect, continue, and preserve my obligations
under this Loan and to confirm your lien status on any Property.

22. CREDIT INFORMATION. I agree to supply you with whatever information you
reasonably request. You will make requests for this information without undue
frequency, and will give me reasonable time in which to supply the information.

23. ERRORS AND OMISSIONS. I agree, if requested by you, to fully cooperate in
the correction, if necessary, in the reasonable discretion of you of any and all
loan closing documents so that all documents accurately describe the loan
between you and me. I agree to
 
 

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assume all costs including by way of illustration and not limitation, actual
expenses, legal fees and marketing losses for failing to reasonably comply with
your requests within thirty (30) days.

24. WAIVER OF JURY. LENDER AND BORROWER HEREBY KNOWINGLY, IRREVOCABLY,
VOLUNTARILY AND INTENTIONALLY WAIVE ANY RIGHT ANY OF THEM MAY HAVE TO A TRIAL BY
JURY IN RESPECT OF ANY ACTION, PROCEEDING OR COUNTERCLAIM BASED ON THIS
AGREEMENT, OR ARISING OUT OF, UNDER, OR IN CONNECTION WITH THIS AGREEMENT OR ANY
DOCUMENT OR INSTRUMENT EXECUTED IN CONNECTION WITH THIS AGREEMENT, OR ANY COURSE
OF CONDUCT, COURSE OF DEALING, STATEMENTS (WHETHER VERBAL OR WRITTEN) OR ACTIONS
OF ANY PARTY HERETO.

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25. SIGNATURES. By signing, I agree to the terms contained in this Note. I also
acknowledge receipt of a copy of this Note.

 
BORROWER:
       
MJ 1353-1355 FIRST AVENUE, LLC,
 
a New York limited liability company
             
By
________________________________
 
Name: John J. Johnson
 
Title: Managing Member

 
 
 

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