Document:

EX-10.18

 Exhibit 10.18 

Execution Copy 
  

 
 OMNIBUS
AMENDMENT AGREEMENT 
 dated as of 26 March 2012, 

by and among 
 DONEGAL RECEIVABLES
PURCHASING LIMITED, 
 MAKHTESHIM AGAN INDUSTRIES LTD., 

NIEUW AMSTERDAM RECEIVABLES CORPORATION, 

COÖPERATIEVE CENTRALE RAIFFEISEN-BOERENLEENBANK B.A., 

and 
 COÖPERATIEVE CENTRALE
RAIFFEISEN-BOERENLEENBANK B.A. (trading as Rabobank International), LONDON BRANCH 
  

 

 TABLE OF CONTENTS 

 

									
	Clause	  	 	  	Page	 
			
	 1.
	 	 DEFINITIONS AND INTERPRETATION
	  	 	1	  
			
	 2.
	 	 TRANSACTION DOCUMENTS
	  	 	2	  
				
		 	 2.1.
	  	 Amendment of Receivables Funding Agreement:
	  	 	2	  
				
		 	 2.2.
	  	 Amendment of Liquidity Agreement:
	  	 	3	  
				
		 	 2.3.
	  	 Amendment of Parent Undertaking Agreement
	  	 	5	  
			
	 3.
	 	 REPRESENTATIONS, WARRANTIES AND COVENANTS
	  	 	5	  
				
		 	 3.1.
	  	 Reaffirmation of Representations and Warranties
	  	 	5	  
				
		 	 3.2.
	  	 Additional Representations and Warranties
	  	 	5	  
				
		 	 3.3.
	  	 Payment of Amendment Fee, Costs, etc.
	  	 	5	  
				
		 	 3.4.
	  	 Corporate Authority, etc.
	  	 	5	  
			
	 4.
	 	 EFFECTIVENESS, RATIFICATION
	  	 	6	  
				
		 	 4.1.
	  	 Effective Date
	  	 	6	  
				
		 	 4.2.
	  	 Ratification
	  	 	6	  
			
	 5.
	 	 MISCELLANEOUS
	  	 	6	  
				
		 	 5.1.
	  	 Governing Law and Jurisdiction
	  	 	6	  
				
		 	 5.2.
	  	 Headings
	  	 	6	  
				
		 	 5.3.
	  	 Counterparts
	  	 	6	  
				
		 	 5.4.
	  	 Severability, etc.
	  	 	6	  
				
		 	 5.5.
	  	 No Petition
	  	 	7	  
				
		 	 5.6.
	  	 Limited Recourse
	  	 	7	  
				
		 	 5.7.
	  	 Contracts (Rights of Third Parties) Act (1999)
	  	 	7	  

  
 i 

 OMNIBUS AMENDMENT AGREEMENT 

THIS OMNIBUS AMENDMENT AGREEMENT (this “Agreement”) is dated as of 26 March 2012 and made BETWEEN: 

 

	(1)	DONEGAL RECEIVABLES PURCHASING LIMITED, a limited company organized under the laws of the Republic of Ireland, as the Purchaser; 

  

	(2)	COÖPERATIVE CENTRALE RAIFFEISEN-BOERENLEENBANK B.A., as Liquidity Bank; 

  

	(3)	MAKHTESHIM AGAN INDUSTRIES LTD., as the Servicer, the Parent and the Subordinated Lender (“MAI”); 

  

	(4)	NIEUW AMSTERDAM RECEIVABLES CORPORATION (as successor in interest to ERASMUS CAPITAL CORPORATION), as a Facility Lender; and 

  

	(5)	COÖPERATIEVE CENTRALE RAIFFEISEN-BOERENLEENBANK B.A., (trading as RABOBANK INTERNATIONAL), London Branch, as the Agent. 

WHEREAS: 
  

	(A)	Certain of the parties to this Agreement have entered into a Master Schedule of Definitions, Interpretation and Construction dated as of September 28, 2004, as amended as of 11 October
2005, December 19, 2005, 2 February 2006, 22 January 2007, 11 August 2008, 31 July 2009, 8 September 2009, 21 January 2010, 23 March 2011 and 1 June 2011, and amended and restated on 22 November
2011 (as from time to time in effect, the “Schedule of Definitions”) and into various other Transaction Documents (such and other capitalized terms being used herein, unless otherwise defined herein, with the meanings provided in
Clause 1 (Definitions and Interpretation)) in connection with a trade receivables purchase programme provided by the Purchaser; and 

  

	(B)	The parties to this Agreement (the “Parties”) wish to modify certain of the Transaction Documents in certain respects, all as set out herein. 

NOW IT IS HEREBY AGREED as follows: 
  

	1.	DEFINITIONS AND INTERPRETATION 

 In this Agreement, including the recitals hereto, except in so
far as the context otherwise requires and subject to any contrary indication, words and expressions defined and expressed to be interpreted and construed in the Schedule of Definitions shall have the same definitions, interpretation and construction
mutatis mutandis herein. For the avoidance of doubt, the Parties confirm that this Agreement is a Transaction Document. 

  
 1 

	2.	TRANSACTION DOCUMENTS 

 2.1. Amendment of Receivables Funding Agreement: 

 

	 	(a)	Subject to clause (b) below, on the Effective Date Schedule 1 to the Receivables Funding Agreement is hereby amended to read as follows: 

SCHEDULE 1 
 Facility Limits
and Currency Facility Limits 
 Aggregate Facility Limit/Aggregate Currency Facility Limit 

 

							
	 	  	Dollars	 	  	Euro, Shekels, Sterling,
Australian Dollars, Zloty
			
	 Aggregate Facility Limit
	  	$	350,000,000	  	  	
			
	 Aggregate Currency Facility Limit
	  	$	350,000,000	  	  	Currency Equivalent
of $350,000,000

 Facility Limit/Currency Facility Limit 

 

			
	Facility Lender:	 	Nieuw Amsterdam Receivables Corporation

  

							
	 Facility Limit
	  	$	350,000,000	  	  	
			
	 Currency Facility Limit
	  	$	350,000,000	  	  	Currency Equivalent
of $350,000,000

  

			
	Process Agent:	 	Coöperatieve Centrale Raiffeisen-Boerenleenbank B.A. (trading as Rabobank International), London Branch, of Thames Court, One Queenhithe, London EC4V 3RL

  

	 	(b)	The amendment provided in clause (a) shall remain in effect from (and including) the Effective Date to (and including) 28 June 2012 (the “End Date”). In the event that, prior to the End
Date, an additional Facility Lender (other than Nieuw Amsterdam Receivables Corporation) has not become party to the Receivables Funding Agreement with a Facility Limit commitment of not less than $100,000,000, Schedule 1 to the Receivables Funding
Agreement shall be hereby amended to read as follows: 

  
 2 

 SCHEDULE 1 

Facility Limits and Currency Facility Limits 

Aggregate Facility Limit/Aggregate Currency Facility Limit 

 

							
	 	  	Dollars	 	  	Euro, Shekels, Sterling,
Australian Dollars, Zloty
			
	 Aggregate Facility Limit
	  	$	250,000,000	  	  	
			
	 Aggregate Currency Facility Limit
	  	$	250,000,000	  	  	Currency Equivalent
of $250,000,000

 Facility Limit/Currency Facility Limit 

 

			
	Facility Lender:	 	Nieuw Amsterdam Receivables Corporation

  

							
	 Facility Limit
	  	$	250,000,000	  	  	
			
	 Currency Facility Limit
	  	$	250,000,000	  	  	Currency Equivalent
of $250,000,000

  

			
	Process Agent:	 	Coöperatieve Centrale Raiffeisen-Boerenleenbank B.A. (trading as Rabobank International), London Branch, of Thames Court, One Queenhithe, London EC4V 3RL

  

	 	(c)	The parties to the Receivables Funding Agreement confirm that, pursuant to Section 2.11 of the Receivables Funding Agreement, the Scheduled Maturity Date has been extended to 25 February 2013.

  

	2.2.	Amendment of Liquidity Agreement: 

  

	 	(a)	Subject to clause (b) below, on the Effective Date Schedule 1 to that certain Liquidity Agreement, dated as of 22 November 2011, between Nieuw Amsterdam Receivables Corporation, as borrower,
Coöperatieve Centrale Raiffeisen-Boerenleenbank B.A., as liquidity bank, and Coöperatieve Centrale Raiffeisen-Boerenleenbank B.A. (trading as Rabobank International), London Branch, as agent and administrator (the “Liquidity
Agreement”), is hereby amended to read as follows: 

  
 3 

 SCHEDULE 1 

Commitments and Currency Commitments 
  

													
	Liquidity Bank	  	Commitments	 	  	 Currency

Commitment
 for
Dollars
	 	  	 Currency

Commitment for
 Euro,
Shekels,
 Sterling, Australian

Dollars, Zloty
	 
				
	 Coöperatieve Centrale Raiffeisen-Boerenleenbank B.A.
	  	$	357,000,000	  	  	$	357,000,000	  	  	 
 	Currency Equivalent
of $357,000,000	  
  
				
	 Totals
	  	$	357,000,000	  	  	$	357,000,000	  	  	 
 	Currency Equivalent
of $357,000,000	  
  

  

	 	(b)	The amendment provided in clause (a) shall remain in effect from (and including) the Effective Date to (and including) the End Date. In the event that, prior to the End Date, an additional Facility Lender
(other than Nieuw Amsterdam Receivables Corporation) has not become party to the Receivables Funding Agreement with a Facility Limit commitment of not less than $100,000,000, Schedule 1 to the Liquidity Agreement shall be hereby amended to read as
follows: 

 SCHEDULE 1 

Commitments and Currency Commitments 
  

													
	Liquidity Bank	  	Commitments	 	  	Currency
Commitment
for Dollars	 	  	 Currency

Commitment for
 Euro,
Shekels,
 Sterling, Australian

Dollars, Zloty
	 
				
	 Coöperatieve Centrale Raiffeisen-Boerenleenbank B.A.
	  	$	255,000,000	  	  	$	255,000,000	  	  	 
 	Currency Equivalent
of $255,000,000	  
  
				
	 Totals
	  	$	255,000,000	  	  	$	255,000,000	  	  	 
 	Currency Equivalent
of $255,000,000	  
  

  
 4 

	2.3.	Amendment of Parent Undertaking Agreement 

  

	 	(a)	On the Effective Date, Section 4.1(o)(i) of the Parent Undertaking Agreement is hereby amended to read as follows: 

  

	 	(o)	Undrawn Commitments and Cash Balances, etc. 

 (i) The Parent and
Affiliates of the Parent controlled by it (“Controlled Affiliates”) shall at all times maintain cash balances at banks and/or committed undrawn bank loan facilities having a legal maturity falling on or after the Commitment
Termination Date in an aggregate amount equal to or in excess of one hundred twenty five million Dollars ($125,000,000). 
  

	 	(b)	On the Effective Date, Section 4.2(1) of the Parent Undertaking Agreement is hereby deleted in its entirety. 

  

	3.	REPRESENTATIONS, WARRANTIES AND COVENANTS 

  

	3.1.	Reaffirmation of Representations and Warranties 

 On the Effective Date, each of the Parties
hereby reaffirms all covenants, representations and warranties made by such Party in each of the Transaction Documents and agrees that all such covenants, representations and warranties shall be deemed to have been remade as of the Effective Date.

  

	3.2.	Additional Representations and Warranties 

 Each of the Parties hereby represents and warrants
that this Agreement constitutes its legal, valid and binding obligation, enforceable against it in accordance with its terms. 
  

	3.3.	Payment of Amendment Fee, Costs, etc. 

 On the Effective Date, the Parent shall pay to the
Agent, by wire transfer of immediately available funds, an amendment fee in the amount of $100,000. The Parent also agrees promptly following written demand therefor from the Agent, to reimburse the Agent for all of its reasonable out-of-pocket
costs and expenses incurred in connection with the execution and effectiveness of this Agreement (including the costs of the Rating Agencies in connection therewith). The Parent hereby agrees that its failure to pay such amendment fee and such costs
and expenses when due shall constitute an Event of Default under the Receivables Funding Agreement without the need for any further grace period or notification. 
  

	3.4.	Corporate Authority, etc. 

 MAI hereby undertakes to deliver to the Agent, not later than 30
days following the Effective Date, a certificate of one of its directors or its corporate secretary (or comparable corporate officer) attaching and certifying as of the Effective Date, to the reasonable satisfaction of the Agent, the signing
authority of MAI and the sample signature/signatures of the authorized person/persons who have signed this Agreement on behalf of MAI. Each of the Parties hereby agrees that, until delivery of the certificate described in the preceding sentence, the
Borrower may neither request nor receive additional Funding Advances under the Receivables Funding Agreement. 

  
 5 

	4.	EFFECTIVENESS, RATIFICATION 

  

	4.1.	Effective Date 

 The various modifications set out in Section 2 of this Agreement
shall become effective on the date of this Agreement (the “Effective Date”) subject only to the execution of this Agreement by each of the Parties. With effect from the Effective Date the relevant Transaction Documents as modified
hereby shall thereafter be binding on the parties thereto and their respective successors and assigns. On and after the effectiveness hereof, in each such Transaction Document to “this Agreement” or “hereof” or
“hereunder” or words of like import, and each reference in any other Transaction Document to such Transaction Document shall mean and be a reference to such Transaction Document as amended hereby. 

 

	4.2.	Ratification 

 Except as expressly amended hereby each of the Transaction Documents shall remain
in full force and effect and is hereby ratified and confirmed by the Parties hereto. 
  

	5.	MISCELLANEOUS 

  

	5.1.	Governing Law and Jurisdiction 

  

	 	(a)	This Agreement and any non-contractual obligations arising out of or in connection with it shall be governed by and construed in accordance with English law. 

 

	 	(b)	Each of the Parties agrees that the courts of England shall have jurisdiction to hear and determine any suit, action or proceeding, and to settle any dispute, which may arise out of or in connection with this Agreement
and, for such purposes, irrevocably submits to the non-exclusive jurisdiction of such courts. 

  

	5.2.	Headings 

 Headings used herein are for convenience of reference only and shall not affect the
meaning of this Agreement. 
  

	5.3.	Counterparts 

 This Agreement may be executed in any number of counterparts and by different
parties hereto in separate counterparts, each of which when so executed shall be deemed to be an original and all of which when taken together shall constitute one and the same Agreement. Delivery by facsimile of an executed signature page of this
Agreement shall be effective as delivery of an executed counterpart hereof. 
  

	5.4.	Severability, etc. 

  

	 	(a)	Any term or provision of this Agreement that is invalid or unenforceable in any situation in any jurisdiction shall not affect the validity or enforceability of the remaining terms and provisions hereof or the validity
or enforceability of the offending term or provision in any other situation or in any other jurisdiction. 

	

  
 6 

	 	(b)	If a court of competent jurisdiction determines that any term or provision of this Agreement as written is invalid, unenforceable or incomplete, the parties agree that the court making the determination of invalidity,
unenforceability, or incompleteness shall reduce the scope, duration, or area of the term or provision, delete specific words or phrases, or replace any invalid, unenforceable or incomplete term or provision with a term or provision that is valid,
enforceable and complete and that comes closest to expressing the intention of the invalid, unenforceable or incomplete term or provision, and this Agreement shall be enforceable as so modified after the expiration of the time within which the
court’s judgment may be appealed. 

  

	5.5.	No Petition 

 Each of the Parties hereby covenants and agrees that, prior to the date which is
two (2) years and one (1) day after the Final Payout Date, it will not institute any proceeding of a type referred to in the definition of Event of Bankruptcy against, or join any other Person in instituting such a proceeding against, the
Purchaser, any Conduit or any Conduit CP Funding Provider that acts as, or that provides funding to, a Facility Lender. 
  

	5.6.	Limited Recourse 

  

	 	(a)	Notwithstanding anything to the contrary contained in this Agreement, the obligations of each Facility Lender under this Agreement and all other Transaction Documents to which it is a party are solely the corporate
obligations of such Facility Lender and shall be payable solely to the extent of funds received from the Purchaser in accordance with the Transaction Documents or from any party to any Transaction Document in accordance with the terms thereof in
excess of funds necessary to pay matured and maturing Commercial Paper issued to fund the acquisition of Receivables. 

  

	 	(b)	Notwithstanding anything to the contrary contained in this Agreement, the obligations of the Purchaser under this Agreement and all other Transaction Documents to which it is a party are solely the corporate obligations
of the Purchaser and shall be payable solely to the extent of funds received by the Purchaser and available for application thereto in accordance with the terms of the Servicing Agreement and the other Transaction Documents. 

 

	5.7.	Contracts (Rights of Third Parties) Act (1999) 

 Except in respect of the Secured Parties not
party hereto, which Persons (including, for the avoidance of doubt, their respective successors and permitted assigns) are intended to have the benefit of this Agreement pursuant to the Contracts (Rights of Third Parties) Act (1999), the Parties do
not intend any term of this Agreement to be enforceable pursuant to the Contracts (Rights of Third Parties) Act (1999). 
 EXECUTION 

The Parties have shown their acceptance of the terms of this Agreement by executing it below. 

	

  
 7 

 SIGNATORIES 
  

									
	DONEGAL RECEIVABLES PURCHASING LIMITED	 		 		 	
					
	By:	 	/s/ Eimir McGrath	 		 		 	
		 	  
	 		 		 	
					
	Name:	 	Eimir McGrath	 		 		 	
					
	Title:	 	Director	 		 		 	
				
	COÖPERATIEVE CENTRALE RAIFFEISEN-BOERENLEENBANK B.A.	 		 		 	
					
	By:	 	/s/ Richard Jorsling	 		 	By:	 	/s/ Bradley Cole
		 	  
	 		 		 	  

					
	Name:	 	Richard Jorsling	 		 	Name:	 	Bradley Cole
					
	Title:	 	GFM Operations	 		 	Title:	 	Authorised Signatory

									
				
	MAKHTESHIM AGAN INDUSTRIES LTD.	 		 		 	
					
	By:	 	/s/ Aviram Lahav	 		 		 	
		 	  
	 		 		 	
					
	Name:	 	Aviram Lahav	 		 		 	
					
	Title:	 	CFO	 		 		 	

									
				
	NIEUW AMSTERDAM RECEIVABLES CORPORATION	 		 		 	
					
	By:	 	/s/ Damian Perez	 		 		 	
		 	  
	 		 		 	
					
	Name:	 	Damian Perez	 		 		 	
					
	Title:	 	Vice President	 		 		 	

  
 S-1 

									
	COÖPERATIEVE CENTRALE RAIFFEISEN-BOERENLEENBANK B.A. (TRADING AS RABOBANK INTERNATIONAL), LONDON BRANCH, as Agent
					
	By:	 	/s/ Donna Kunzig	 		 	By:	 	/s/ Mark D. O’Keefe
		 	  
	 		 		 	  

					
	Name:	 	Donna Kunzig	 		 	Name:	 	Mark D. O’Keefe
					
	Title:	 	Executive Director	 		 	Title:	 	Managing Director

  
 S-2Exhibit 10.1 Contract of Sale-Edgewood Building

EXHIBIT 10.1

CONTRACT OF SALE BETWEEN

FAE HOLDINGS 415829R LLC, Seller,

And

MD JAHIRUL ISLAM, Purchaser,

As of November 12, 2014

TABLE OF CONTENTS

Section 1.    Sale of premises and acceptable title

Section 2.    Purchase price, acceptable funds, escrow of down payment and
mortgage contingency and environmental contingency 

Section 3.    The closing; Adjustments

Section 4.    Representations of seller

Section 5.    Acknowledgments of purchaser 

Section 6.    Destruction, damage or condemnation 

Section 7.    Seller's closing obligations

Section 8.    Purchaser 's closing obligations

Section 9.    Objections to title, failure of seller or purchaser to perform and vendee's lien

Section 10.    Broker

Section 11.    Notices

Section 12.    Limitations on survival of representations, warranties, covenants and other obligations

Section 13.    Miscellaneous provisions 

Section 14.    Intentionally Omitted 

Section 15.    Operations Pending Closing

Section 16.    Facilitation of Tax Deferred Exchange

CONTRACT dated as of November 12, 2014 between FAE HOLDINGS 415829R LLC, having an address at 131 Heartland Blvd., Edgewood, New York 11717 ("Seller") and MD JAHIRUL ISLAM having an address at 1885 New Highway, East Farmingdale, New York 11735, ("Purchaser").

SELLER AND PURCHASER HEREBY COVENANT AND AGREE AS FOLLOWS:

Section 1.    Sale of Premises and Acceptable Title

1.01    Seller shall sell to Purchaser, and Purchaser shall purchase from Seller, at the price and upon the terms and conditions set forth in this contract: (a) that parcel of land, more particularly described on Schedule A attached hereto ("Land"); (b) all right, title and interest of Seller, if any, in and to the land lying in the bed of any street or highway in front of or adjoining the Land to the center line thereof and to any unpaid award for any taking by condemnation or any damage to the Land by reason of a change of grade of any street or highway; and (c) all buildings, structures and other improvements ("Improvements") on the Land, in "as is" condition. (collectively "Premises'}The Premises are identified on the Suffolk County Tax Map as #0500 - 134.00 - 05.00 - 001.000 and known as 131 Heartland Blvd., Edgewood, New York 11717.

1.02    Seller shall convey and Purchaser shall accept fee simple title to the Premises in accordance with the terms of this contract, subject only to: (a) any state of facts an accurate survey may show provided same does not render title unmarketable; (b) instruments of record, if any provided same are not violated by the existing Improvements and the maintenance and use thereof; and (c) such other matters as Purchaser's title insurer a member of the American Land Title Association shall be willing, without special premium, to omit as exceptions to coverage.

Section 2.    Purchase Price, Acceptable Funds and Escrow of Down Payment Mortgage Contingency and Environmental Contingency

2.01    The purchase price ("Purchase Price") to be paid by Purchaser to Seller for the Premises described in Schedule A shall be Three Million Five Hundred Thousand ($3,500,000.00) Dollars.

2.02    The Purchase Price shall be paid as follows:

a.  $175,000.00 by check upon execution of this Contract; and

b.  $3,325,000.00 at closing.

2.03    All monies payable under this contract, unless otherwise specified in this contract, shall be paid by (a) certified checks of Purchaser drawn on any bank, savings bank, trust company or savings and loan association having a banking office in the State of New York or (b) official bank checks drawn by any such banking institution, payable to the order of Seller, except that uncertified checks of Purchaser payable to the order of Seller up to the amount of $1,000.00 shall be acceptable for sums payable to Seller at the Closing.

2.04    Down Payment in Escrow.

a.Seller's attorney ("Escrowee") shall hold the down payment for Seller's account in escrow in a segregated interest bearing bank account at Gold Coast Bank, until closing, or sooner termination of this contract. At closing or sooner termination of this contract the interest which has accrued on the down payment will be payable to the party entitled to receive the down payment.

b.The parties acknowledge that, although Escrowee is holding the down payment for Seller's account, for all other purposes Escrowee is acting solely as a stakeholder at their request and for their convenience and that Escrowee shall not be liable to either party of any act or omission on its part unless taken or suffered in bad faith or in willful disregard of this contract or involving gross negligence on the part of Escrowee. Seller and Purchaser jointly and severally agree to defend, indemnify and hold Escrowee harmless from and against all costs, claims and expenses (including reasonable attorneys' fees) incurred in connection with the performance of Escrowee's 

duties hereunder, except with respect to actions or omissions taken or suffered by Escrowee in bad faith or in willful disregard of this contract or involving gross negligence on the part of Escrowee; however, such representation shall negate indemnification and hold harmless provisions above,

c.Escrowee may act or refrain from acting in respect of any matter referred to herein in full reliance upon and with the advice of counsel which may be selected by him.

d.Escrowee or any member of his firm shall be permitted to act as counsel for Seller in any dispute as to the disbursement of the down payment or any other dispute between the parties whether or not Escrowee is in possession of the down payment and continues to act as Escrowee.

e.Purchaser's downpayment shall be non-refundable sixty-one (61) days after the date contracts are fully executed and shall become the property of Seller in the event Purchaser fails to close title hereunder through no fault of Seller.

2.05    Mortgage Contingency.

This contract is subject to and contingent upon the Purchaser, procuring at its own cost and expense a commitment in writing for a conventional first mortgage loan in the principal amount of $2,800,000.00 at the prevailing rate of interest to be repaid over a term of not less than twenty (20) years from the closing of title. In the event that such mortgage loan commitment is not issued or declined within forty five (45) days from the date hereof; the Seller shall have the option to cancel this agreement or to extend the time for the Purchaser to obtain such commitment for an additional fifteen (15) days. In the event that no mortgage commitment is issued during the original period and the Seller has refused to extend the time to obtain the same, the Purchaser shall have the option to cancel this agreement. In the event that Seller has extended the period and no mortgage commitment is issued within such extended time, then either party hereto shall have the right and option to terminate this agreement; provided, however, that notification of the exercise of such option shall be in writing and delivered prior to the receipt by Purchaser of a mortgage commitment. In the event this contract shall be so terminated, all monies paid on account hereof shall be returned to the Purchaser and thereafter, neither party shall have any claim against the other or the subject premises as a result of this agreement.

The Purchaser agrees to make application for such mortgage financing within ten (l0) days from the date of delivery of a fully executed counterpart of this Contract to Purchaser's attorney and to diligently pursue same. Purchaser agrees, upon request, to keep Seller or Seller's attorney informed currently of the progress of its application, to complete all forms reasonably required by the mortgage lender and to use its best efforts to obtain such commitment within the time provided above. A copy of said commitment shall be forwarded to Seller's attorney by Purchaser promptly upon receipt of same.

2.06    Environmental Contingency

Within thirty (30) days from the date Purchaser 's attorney receives a fully executed copy of this contract Purchaser  may, at Purchaser 's expense, conduct inquiries, inspections, soil tests, borings, and studies as Purchaser may desire. Both parties shall comply with all environmental laws, rules and regulations relating to such environmental testing, including, without limitation any reporting requirements. Purchaser shall  be responsible for and shall reimburse Seller for any loss or damage to property caused by Purchaser's entry, including, without limitation, mechanic's liens or claims that may be filed or asserted against the Premises or other property of Seller by contractors, subcontractors or materialmen performing such work for Purchaser; provided, however, Purchaser shall not be liable for any contamination discovered during such testing.

In the event that Purchaser's initial  environmental  inspection  requires  additional physical data, then the period of this environmental contingency shall be extended for a reasonable time not to exceed an additional thirty (30) days upon  Purchaser's request. The initial 30 day period referred to in this section as same may be  extended  is  hereinafter referred  to as the Environmental Contingency Period.

In the event that the environmental testing conducted  by Purchaser reveals that the soil or groundwater is contaminated, or otherwise in violation of any environmental law promulgated by the United States of America, the State of New York or any other municipal authority, then Purchaser may cancel this Contract within the Environmental Contingency Period, unless Seller agrees to remediate such contamination at its sole cost and expense and in accordance with all applicable environmental laws, rules and regulations.

Attached is a "No Further Action" letter dated February 24, 2014 from the County of Suffolk, Department of Health Services.

Section 3.    The Closing; Adjustments

3.01    Except as otherwise provided in this contract, the closing of title pursuant to this contract ("Closing") shall take place on or about ninety (90) days from the date contracts are fully executed at the office of the Purchaser's lending institution, provided same is located in Nassau or Suffolk County, New York.

3.02    The following items shall be adjusted as of midnight, the day prior to Closing:
a.    real estate taxes on the basis of the lien year;
b.    utility expenses;
c.    fuel; and
d.    premiums on transferrable insurance policies, which Purchaser elects to continue.

Section 4.    Representations of Seller.

4.01    Seller is the owner of the Premises.

4.02    Seller has the power to convey the Premises in accordance with the provisions of this Contract.

4.03    Seller is not a "foreign person", as that term is defined for purposes of the Foreign investment in Real Property Tax Act, Internal Revenue Code ("IRC") Section 1445, as amended, and the regulations promulgated thereunder (collectively "FIRPTA").

4.04    There are no service or other contracts affecting the Premises which are not terminable at will.

4.05    The Premises has access to a public highway.

Section 5.    Acknowledgments of Purchaser.

Purchaser acknowledges that:

5.01    Purchaser has inspected the Premises, and the improvements thereon, is fully familiar with the physical condition thereof, and, shall accept the Premises, "as is" and in their present condition, subject to natural deterioration between now and the Closing Date, without any reduction in the Purchase Price for any change in such condition by reason of such wear and tear or deterioration subsequent to the date of this contract.

5.02    Before entering into this contract , Purchaser has made such examination of the Premises, applicable zoning ordinances and all other matters affecting or relating to this transaction as Purchaser deemed reasonably necessary. In entering into this contract, Purchaser has not been induced by and has not relied upon any representations, warranties or statements, whether express or implied, made by Seller or any agent, employee or other representative of Seller or by any broker or any other person representing or purporting to represent Seller, which are not expressly set forth in this contract, whether or not any such representations, warranties or statements were made in writing or orally.

Section 6.    Destruction , Damage or Condemnation

6.01    The Provisions of Section 5-1311 of the New York General Obligations Law shall apply to the sale and purchase provided  for in this contract.

Section 7.    Seller's Closing Obligations

At Closing, Seller shall deliver the following to Purchaser:

7.01    A Bargain and Sale Deed with Covenant against Grantor's Acts properly executed in proper form for recording so as to convey the title required by this contract.

7.02    Such affidavits as Purchaser's title company shall require in order to omit from its title insurance policy all exceptions for judgments, bankruptcies or other returns against persons or entities whose names are the same as or similar to Seller's name.

7.03    Checks to the order of the appropriate officers in payment of the New York State real property transfer tax and copies of any required tax returns therefor executed by Seller, which checks shall be certified or official bank checks if required by the taxing authority, unless Seller elects to have Purchaser pay any of such taxes and credit Purchaser with the amount thereof upon timely notice.

7.04    Satisfaction of any mortgages affecting the Premises.

7.05    Any other documents required by this contract to be delivered by Seller.

7.06    The Premises in vacant condition, subject to no violations of record with all utilities in working order and the roof free of leaks.

Section 8.    Purchaser's Closing Obligations.

At the Closing, Purchaser shall:

8.01    Deliver to Seller checks in payment of the portion of the Purchase Price payable at the Closing.

8.02    Cause the deed to be recorded, duly complete all required real property transfer tax returns and cause all such returns and checks in payment of such taxes (NY State Transfer Tax paid by Seller's check) to be delivered to the appropriate officers promptly after the Closing.

Section 9.    Objections to Title, Failure of Seller or Purchaser To Perform and Vendee's Lien

9.01    Purchaser shall promptly order an examination of title and shall cause a copy of the title report to be forwarded to Seller's attorney upon receipt. Seller shall be entitled to a reasonable adjournment or adjournments of the Closing for up to 60 days in order to remove any title exceptions Seller is obligated to remove pursuant to this contract.

9.02    If Seller shall be unable to convey title to the Premises at the Closing in accordance with the provisions of this contract or if Purchaser shall have any other grounds under this contract for refusing to consummate the purchase provided for herein, Purchaser, nevertheless, may elect to accept such title as Seller may be able to convey with a credit against the monies payable at the Closing equal to the reasonably estimated cost to cure the same, but without any other credit or liability on the part of Seller. If Purchaser shall not so elect, Purchaser may terminate this contract and the sole liability of Seller shall be to refund the Down Payment to Purchaser and to reimburse Purchaser for the net cost of title examination, but not to exceed the net amount charged by Purchaser's title company therefor without issuance of a policy, and the net cost of updating the existing survey of the Premises 

or the net cost of a new survey of the Premises if there was no existing survey,  and Purchaser 's actual expenditures incurred in satisfying the Environmental contingency set forth in Section 17 hereof, not to exceed $2,500.00. Upon such refund and reimbursement, this contract shall be null and void and the parties hereto shall be relieved of all further obligations and liability other than any arising under Section 17. Seller shall not be required to bring any action or proceeding or to incur any expense to cure any title defect or to enable Seller otherwise to comply with the provisions of this contract, except if curable by payment of money alone up to $10,000.00. Notwithstanding the foregoing, Seller agrees to satisfy any voluntary lien affecting the Premises without monetary limit.

9.03    Any unpaid taxes, assessments, water charges and sewer rents, together with the interest and penalties thereon to a date not less than two days following the Closing Date, and any other liens and encumbrances which Seller is obligated to pay and discharge or which are against corporations, estates or other persons in the chain of title, together with the cost of recording or filing any instruments necessary to discharge such liens and encumbrances of record, may be paid out of the proceeds of the monies payable at the Closing upon timely written notice if Seller delivers to Purchaser on the Closing Date official bills for such taxes, assessments, water charges, sewer rents, interest  and penalties and instruments in recordable form sufficient to discharge any other liens and encumbrances of record . If Purchaser's title insurance company is willing to omit said exceptions, then, unless Purchaser's Institutional Lender reasonably refuses to accept such insurance in lieu of actual payment and discharge, Seller shall have the right in lieu of payment and discharge to deposit with the title insurance company such funds or assurances or to pay such special or additional premiums as the title insurance company may require in order to so insure. In such case the charges, liens and encumbrances with respect to which the title  insurance  company has agreed to insure shall not be considered objections to title.

9.04    If Purchaser shall default in the performance of Purchaser 's obligations under this contract to purchase the Premises, the sole remedy of Seller under this contract either at law or in equity shall be to retain the Down Payment as liquidated damages for all loss, damage and expense suffered by Seller, including without limitation the loss of its bargain.

9.05    Purchaser shall have a vendee's lien against the Premises for the amount of the Down Payment, but such lien shall not continue after default of Purchaser under this contract.

Section 10.    Broker

10.01    The parties represent to each other that they have dealt with no Broker with respect to the Premises except NEWMARK GRUBB KNIGHT FRANK ("Broker"). Seller agrees to pay Broker a commission in accordance with the provisions of a separate agreement.  Each of the parties (the "Indemnifying Party") agrees to indemnify the other (the "Indemnified Party") against claims made by any other real estate broker with respect to the purchase and sale of the Premises as a result of dealings with the Indemnifying Party. The provisions of this Section shall survive closing or, if closing does not occur, the termination of this contract.

Section 11.    Notices

11.01    All notices under this contract shall be in writing and shall be delivered personally or shall be sent by prepaid registered or certified mail, addressed to the parties at the address hereinabove set forth with a copy of any such notice by regular mail to the attorney for such party as follows:

IF TO SELLER:        
Pinks, Arbeit & Nemeth
140 Fell Court, Suite 303
Hauppauge , NY 11788
Attn : Joseph G. Nemeth, Jr.

IF TO PURCHASER:    
Dougherty & Schneider
625 Merrick Road
Baldwin, NY  11510
Attn: Edward Hansen

Any notice may be given by the attorney for a party and shall have the same force as if given by the party. Either party may, by notice, change the address at which notices are to be given hereunder.

Section 12.     Limitations on Survival of Representations, Warranties, Covenants and Other Obligations

12.01    Except  as otherwise provided  in this contract and deed to be tendered, no representations, warranties, covenants or other obligations of Seller set forth in this Contract shall survive the Closing;

Section 13.    Miscellaneous Provisions

13.01    This contract embodies and constitutes the entire understanding between the parties with respect to the transaction contemplated herein, and  all  prior  agreements, understandings, representations and statements, oral or written, are merged into this contract. Neither this contract nor any provision hereof may be waived, modified, amended, discharged or terminated except by an instrument signed by the party against whom the enforcement of such waiver, modification, amendment, discharge or termination is sought, and then only to the extent set forth in such instrument.

13.02    This contract shall be governed by, and construed in accordance with, the law of the State of New York.

13.03    The captions in this contract are inserted for convenience of reference only and in no way define, describe or limit the scope or intent of this contract or any of the provisions hereof.

13.04    This contract shall be binding upon and shall inure to the benefit of the parties hereto and their respective heirs or successors and permitted assigns.

13.05    This contract shall not be binding or effective until properly executed and delivered by Seller and Purchaser.

13.06    All time limits referred to herein shall commence upon receipt by Purchaser's attorney of a fully executed counterpart of this Contract.

13.07    The parties hereby appoint their respective attorneys as their agent for the purpose of executing any extensions of time which may be required for the satisfaction of any contingency set forth herein.

13.08    Purchaser shall be entitled to assign this Contract to an entity in which Purchaser owns a majority interest.

Section 14.    Intentionally Omitted

Section 15.    Operations Pending Closing

15.01    Between the date hereof and the date of Closing, Seller shall not, without the prior written consent of Purchaser, which consent shall not be unreasonably withheld or delayed do any of the following:

(a)execute any covenant, restriction, easement or agreement affecting the Premises;

(b)make any repair or capital improvement unless payment in full for same has been made prior to closing; or

(c)enter into any leases.

Section 16.     Facilitation of Tax Deferred Exchange.

16.01    Each party agrees to cooperate with the other by executing all relevant agreements to permit the parties to avail themselves of the exchange provisions set forth in Section 1031 of the Internal Revenue Code, provided further that: (a) the cooperating party shall incur no expense or liability in connection therewith; (b) all costs, fees, and expenses attendant to the exchange shall be the sole responsibility of the requesting party; (c) the Closing shall not be delayed or affected by reason of the exchange, nor shall the consummation or accomplishment of the exchange be a condition precedent or condition subsequent to the requesting party's obligations and covenants under this contract; and (d) the cooperating party shall not be required to hold title to any real property other than the Premises for purposes of consummating the exchange. The requesting party agrees to defend, indemnify, and hold the cooperating party harmless  from any liability, damages, or costs, including without limitation reasonable attorney's fees, that may  result  from such party's acquiescence to the exchange. The cooperating party  shall  not by this contract or acquiescence to the exchange: (1) have its rights under this contract, including those that survive Closing, affected or diminished in any manner or (2) be responsible for compliance with or be deemed  to have warranted to the other party that the exchange in  fact complies with Section 1031 of the lnternal Revenue Code or any other law or regulation. The cooperating party consents to the requesting party's assigning this contract  to its exchange facilitator provided that (A) the exchange facilitator strictly complies with the requirements of this Sect ion 21 and the other provisions of this contract, and (B) the requesting party shall remain liable to the cooperating party to fulfill all obligations of the requesting party in this contract after such assignment.

IN WITNESS WHEREOF, the parties hereto have executed this contract as of the date first above written.

FAE HOLDINGS 415829R LLC

By: /s/ John M. Badke
Seller

By: /s/ Jahirul Islam
Purchaser

Receipt by Escrowee
The undersigned Escrowee hereby acknowledges receipt of $175,000.00 by check subject to collection, to be held in escrow pursuant to the provisions hereof.

PlNKS , ARBEIT & NEMETH
By: /s/ Joseph G. Nemeth, Jr.

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