Document:

Exhibit 10.5

 

 

GENERAL ASSIGNMENT OF RENTS

 

Date: August 26, 2011

 

Assignor:  FARM SPRINGS ROAD, LLC.  A(n) o individual(s) o corporation

x limited liability company o partnershipo                organized and registered under the laws of the State of Connecticut.

Organizational Identification Number (if any)                 (Note:  this number is not the same as the Taxpayer Identification Number.)

 

Chief executive office/residence: c/o GTJ REIT, Inc., 444 Merrick Road, Suite 370, Lynbrook, New York 11563

 

Assignee:  MANUFACTURERS AND TRADERS TRUST COMPANY, a New York banking corporation having its offices at One Fountain Plaza, Buffalo, New York 14203, Attn: M&T Real Estate, Inc.

 

WHEREAS, Assignee has extended credit to, or that is guaranteed by, Assignor and that is secured in part by a Mortgage dated on or about the date of this Assignment (together with any extensions, supplements, modifications, amendments, and consolidations thereof, collectively referred to herein as the “Mortgage”) encumbering the Premises (as defined in the Mortgage) (including the land described on the attached Schedule A) and securing the Indebtedness (as defined in the Mortgage); and

 

WHEREAS, Assignee has required Assignor in connection with the Indebtedness to make the assignments and grant to Assignee the rights set forth in this Assignment; and

 

WHEREAS, Assignee desires to grant Assignor a conditional license to collect and use the income derived from the Premises and to take certain leasing actions in the ordinary course of business.

 

NOW, THEREFORE, in consideration of the foregoing and other good and valuable consideration, the receipt of which is acknowledged, Assignor covenants with Assignee so long as this Assignment is in effect as follows:

 

1.     DEFINITIONS.

 

a.               “Default” under this Assignment shall exist (i) if any representation made by any Assignor in this Assignment is found to have been untrue or misleading in any material respect at the time it was made, (ii)  if any Assignor fails to observe any covenant made in this Assignment and (A) fails, upon notice from Assignee advising such Assignor of such failure, to cure the failure within thirty (30) days, (B) ceases to pursue diligently the cure of the failure or (C) repudiates in writing its obligation to cure the failure, or (iii) if an “Event of Default” exists under the terms of the Mortgage or any other Loan Document.

 

b.              “Leases” means all of Assignor’s right, title and interest, now or in the future, under any leases or other agreements, written or oral, conferring any tenancy or right to occupy, possess or use any portion of the Premises (together with all extensions, renewals and modifications of any Lease), all guaranties of the tenants’ performance of obligations under any Lease, Assignor’s interest in any further leases, subleases, lettings or agreements upon or covering use or occupancy of all or any part of the Premises, and all other agreements conferring any right to collect Rents, including Assignor’s rights to cancel, modify, terminate, or accept the surrender of any Lease, to remove and evict the tenants under any Lease, or to increase or reduce Rents.

 

c.               “Leasing Actions” means all executions, modifications, terminations, and extensions of any Lease, all grants of purchase options or rights of first refusal, and all other actions taken by any Assignor in exercising its rights as landlord under any Lease.

 

d.              “Loan Documents” means all documents entered into in connection with the Indebtedness, the Mortgage, the Note (as defined in the Mortgage) or this Assignment.

 

	
CM-026-NY (11/04)
    	
 
    	
©   Manufacturers and Traders Trust Company, 2004
    

 

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e.               “Rents” means all rents, income, receipts, issues and profits and other benefits paid or payable for using, leasing, subleasing, licensing, possessing, operating from or in, residing in, selling, mining, extracting minerals from, or otherwise enjoying the Premises, whether presently existing or arising in the future, to which any Assignor may now or hereafter become entitled or may demand or claim, including security deposits, amounts drawn under letters of credit securing tenant obligations, minimum rents, additional rents, parking revenues, deficiency rents, termination payments, space contraction payments, liquidated damages following default under any Lease, premiums payable by tenants upon their exercise of cancellation privileges, proceeds from lease guarantees, proceeds payable under any policy of insurance covering loss of rents resulting from untenantability caused by destruction or damage to the Premises, all rights and claims of any kind which any Assignor has or may in the future have against the tenants under the Leases, lease guarantors, or any subtenants and other occupants of the Premises; all proceeds of any sale of the Premises in violation of the Loan Documents, any future award granted any Assignor in any court proceeding involving any tenant in any bankruptcy, insolvency, or reorganization proceedings in any state or federal court; and any and all payments made by any tenant in lieu of rent.

 

2.              ASSIGNMENT.

 

a.               Until such time as the Indebtedness is indefeasibly paid in full, Assignor does hereby grant, sell, transfer, set over, deliver, and absolutely, unconditionally and irrevocably assign unto Assignee the Leases and the Rents, to have and to hold the same unto Assignee and unto its successors and assigns forever.

 

b.              This Assignment is made in support of the Indebtedness and in support of the payment, observance, performance and discharge of all obligations, conditions covenants, and warranties contained in the Mortgage and the other Loan Documents.  This Assignment is and shall be primary and on a parity with the real estate conveyed by the Mortgage.

 

3.              LICENSE TO COLLECT AND USE RENTS.  Assignee grants to Assignor a conditional license, subject to Assignee’s rights under Section 5 of this Assignment, to collect the Rents, in trust for Assignee, to use them solely for the maintenance of the Premises and the repayment of the Indebtedness and, so long as no Default exists, to make the balance of the Rents available for use of and distribution to Assignor.  This license extends only to Rents collected no more than one month in advance.

 

4.              LICENSE TO TAKE CERTAIN LEASING ACTIONS.

 

a.     Assignee grants to Assignor a conditional license, subject to Assignee’s rights under this Assignment, to take all Leasing Actions, as trustee for Assignee, provided such Leasing Actions are not excluded from the scope of such Assignor’s license under Section 4(b) of this Assignment and are taken in strict compliance with the terms of this Assignment.

 

b.              The license granted by Assignee under this Section 4 does not extend to (i) the amendment, cancellation, abridgement, termination, or other modification of any lease of the Premises or of any portion thereof (except in accordance with the terms of any such lease) or (ii) acceptance of any prepayment of installments of rent to become due thereunder for more than one month in advance, without the prior written consent of Assignee.  Assignor shall not take any Leasing Action or make any new lease in place of any lease renewal or extension of any lease of the Premises or any portion thereof (other than those that Assignor as landlord may be required to grant by the terms of an existing lease) without the prior written consent of Assignee, which consent shall not be unreasonably withheld or delayed.  Upon request by Assignee, Assignor shall promptly furnish to Assignee a written statement containing the names and mailing addresses of all lessees of the Premises or of any portion thereof, the terms of their respective leases, the space occupied and the rentals payable thereunder and copies of their respective leases and shall cooperate in effecting delivery of notice of this covenant to each affected lessee.

 

5.              ASSIGNEE’S APPROVAL OF LEASING ACTIONS.  Leasing Actions that Assignor is not expressly licensed to take under Section 4 of this Assignment require Assignee’s advance written approval.  Assignor shall request such approval in a writing.  The request shall be accompanied by (i) a copy of the form of lease, lease amendment or other written instrument that is to effect the proposed Leasing Action and (ii) any financial materials (such as credit reports, tenant financial statements, or retail tenant sales information) used by any Assignor in arriving at its decision to take the proposed Leasing Action.  Assignee may, in the exercise of its reasonable discretion, request any additional documentation required to permit its analysis of the proposed Leasing Action.

 

6.              DELIVERY OF LEASE DOCUMENTS.  Upon request of Assignee from time to time, Assignor shall promptly deliver to Assignee complete documentation evidencing those Leasing Actions taken by such Assignor pursuant to its license not previously delivered.  Assignor shall certify to Assignee that all such Leasing Actions have been taken in compliance with terms of this Assignment.

 

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7.              ASSIGNOR’S REPRESENTATIONS AND WARRANTIES.  Assignor represents and warrants as follows:

 

a.               Assignor is the owner in fee simple absolute of the Premises, has good title to the Leases and Rents and has good right to assign them. No other natural or legal person has any right, title or interest to any Assignor’s interest in the Leases and Rents.

 

b.              Assignor has duly and punctually performed all of the landlord’s obligations, covenants, conditions and warranties under the terms of the Leases.

 

c.               To Assignor’s best knowledge, no tenant under any Lease is in material default in the performance of its terms.

 

d.              Assignor has not previously sold, assigned, transferred, mortgaged, or pledged the Leases or the Rents.

 

e.               The Leases delivered to Assignee in connection with the execution and delivery of the Mortgage are valid, unmodified (except pursuant to modifications that have been delivered to Assignee) and are in full force and effect.

 

f.                 No Rent that will accrue under any Lease has been waived, released, discounted, set off or otherwise discharged or compromised.

 

g.              No Assignor has received any funds or deposits from the tenant under any Lease in excess of one month’s Rent, other than security deposits or advance rents in respect of periods of the rental term that have elapsed.

 

8.              ASSIGNOR’S COVENANTS.  Assignor hereby covenants as follows:

 

a.               Assignor shall observe, perform and discharge, duly and punctually, such Assignor’s obligations, covenants, conditions and warranties under the terms of the Leases, the Mortgage, this Assignment and the other Loan Documents.

 

b.              Assignor shall use commercially reasonable efforts to cause the tenants under the Leases to perform their obligations under the Leases.

 

c.               No Assignor shall take any Leasing Action without Assignee’s advance written approval, except as expressly permitted under the license granted to such Assignor under Section 4 of this Assignment.

 

d.              Assignor shall appear in and defend any action or proceeding arising under, or in any manner connected with the Leases or the obligations, duties or liabilities of such Assignor and the tenants under the Leases.

 

e.               Assignor shall execute and deliver to Assignee from time to time such further assignments and instruments as Assignee reasonably may request in order to effectuate the intent of this Assignment.

 

f.                 Assignor shall, promptly upon execution, send Assignee a full and complete copy of any new Lease.

 

g.              If any Assignor receives any written or oral notice from any tenant asserting a material default by the landlord under any Lease, or advising such Assignor that a condition exists which may become a material default with the passage of time, such Assignor shall send a copy or memorandum of the notice to Assignee.

 

h.              Assignor agrees, upon written request of Assignee, to notify the tenants under the Leases of this Assignment, to direct them in writing to send Assignee, simultaneously, copies of all notices of default that they serve on such Assignor, and to require them, at Assignee’s request, to pay all future Rent directly to Assignee.  The Rents and copies of such notices shall be sent to Assignee at such address as is specified by Assignee from time to time.

 

i.                  No Assignor shall create or permit any lien, charge, or encumbrance of the Leases or of the Rents or pledge, transfer, or otherwise assign the Leases or the Rents unless at Assignee’s request.

 

j.                  Assignor shall consent to neither an assignment of the tenant’s interest in any Lease nor to any tenant’s subletting all or any portion of the Premises leased by it except to the extent such consent expressly may be required by the terms and conditions of any Lease in effect on the date of this Assignment or entered into in strict compliance with the terms of this Assignment.

 

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9.              ASSIGNEE’S RIGHTS UPON DEFAULT.

 

a.               Upon Default, Assignee may by notice to any Assignor immediately terminate such Assignor’s licenses under either or both of Sections 3 and 4 of this Assignment, regardless of whether the Premises or any other collateral adequately secures the eventual repayment of the Indebtedness.  Upon the termination of any Assignor’s license under Section 3 of this Assignment, such Assignor shall immediately deliver to Assignee all Rents then in such Assignor’s possession, and all Rents then due or accruing thereafter shall be payable by tenants directly to Assignee.  This Assignment shall constitute a direction to and full authority to any tenant of the Premises, upon Assignee’s written request, to pay all Rents to Assignee, without requiring Assignee to prove to the tenant the existence of Default.  Assignor agrees to deliver immediately to Assignee any Rents received by such Assignor after the termination of such Assignor’s license under Section 3 of this Assignment.  At Assignee’s written request, Assignor shall execute such further assignments to Assignee of any Lease as Assignee may in its sole judgment request.  This Assignment is given in connection with the Mortgage and in support of the performance of such Assignor’s obligations under the Loan Documents, and nothing herein contained shall be construed as constituting Assignee as an “Assignee-in-possession” of the Premises.

 

b.              Assignee shall apply Rents it collects as follows:  (i) first, to the payment of late and other charges, if any, due and payable under the Loan Documents; (ii) second, to the repayment of any sums advanced by Assignee for the payment of any insurance premiums, taxes, assessments or other impositions or charges against the Premises; (iii) third, to the payment of any other sums due from any Assignor to Assignee pursuant to the Loan Documents (other than the amounts described in clauses (v) and (vi) below); (iv) fourth, to the payment of any obligations of any Assignor under any environmental indemnity agreement; (v) fifth, to the payment of interest and principal then due with respect to the Indebtedness; (vi) sixth, to the establishment and maintenance of an escrow account for the payment of impositions on the Premises in accordance with the Loan Documents; (vii) seventh, to the payment to unaffiliated third parties of ordinary expenses incurred in connection with operation of the Premises, including reasonable and customary third-party management fees not exceeding four percent (4%) of effective gross income; (viii) eighth, to establish a fund to be held by Assignee in its general account, without interest, as additional security for the Indebtedness pending the cure of all Defaults, and to be disbursed by Assignee in its reasonable discretion to permit such Defaults to be cured; and (ix) ninth, after the cure of all Defaults and only thereafter, the balance of the Rents shall be distributed to any Assignor or to the order of any Assignor.

 

c.               Assignor agrees that Assignee’s exercise of its rights under this Section 9 shall give rise to neither (i) an accord and satisfaction with respect to any obligation not fully performed by such Assignor or completely satisfied through the application of Rents by Assignee nor (ii) a waiver of any rights or remedies of Assignee.

 

d.              Upon the cure of all Defaults, Assignee may, in its sole and absolute discretion, by notice to any Assignor, reinstate either or both of the licenses granted to such Assignor under Sections 3 and 4 of this Assignment.

 

10.       EXPENSES.  Assignor shall pay to Assignee on demand all reasonable costs and expenses (including but not limited to attorneys’ fees and disbursements whether for internal or outside counsel) incurred by Assignee in connection with this Assignment, the Indebtedness or the Mortgage including costs of collection, of preserving or exercising any right or remedy of Assignee under this Assignment or any related assignment or guaranty, of workout or bankruptcy proceedings by or against Assignor, of defending against any claim asserted as a direct or indirect result of the Indebtedness or of performing any obligation of any Assignor pursuant to this Assignment or otherwise (including but not limited to payment of any amount any Assignor is obligated to pay pursuant to this Assignment and performance of any obligation of Assignor pursuant hereto).  Assignee reserves the right to have Assignor pay, upon demand, administrative fee(s) in regard to any administrative action Assignee is required or requested to take including the preparation of discharges, releases or assignments to third parties.  Costs and expenses shall accrue interest at the default rate set forth in the Note from the date of demand until payment is actually received by Assignee.  Each such cost and expense and any interest thereon shall constitute part of the Indebtedness and be secured by this Assignment and may be added to the judgment in any suit brought by Assignee or its agents against any Assignor on this Agreement.

 

11.       NOTICES.  Any demand or notice hereunder or under any applicable law pertaining hereto shall be in writing and duly given if delivered to Assignor (at its address on Assignee’s records) or to Assignee (at the address on page one and separately to Assignee officer responsible for any Assignor’s relationship with Assignee).  Such notice or demand shall be deemed sufficiently given for all purposes when delivered (i) by personal service and shall be deemed effective when delivered, or (ii) by mail or courier and shall be deemed effective three (3) business days after deposit in an official depository maintained by the United States Post Office for the collection of mail or one (1) business day after delivery to a nationally recognized overnight courier service (e.g., Federal Express).  Notice by e-mail is not valid notice under this or any other assignment between any Assignor and Assignee.

 

12.       NOTICE OF NON-COMPLIANCE.  Assignor shall notify Assignee in writing of any failure by any Assignor to comply with any provision of this Assignment or any Loan Document immediately upon learning of such non-compliance, or if any representation, warranty or covenant contained in any such document is no longer true.  Assignor shall also immediately notify Assignee in writing if there is any material adverse change in any of the information or financial statements supplied

 

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to Assignee to induce Assignee or any affiliate of Assignee (“Affiliate”) to extend credit to Assignor or any party which Assignor has guarantied the debt of or if such information or financial statement is required under this Assignment or any Loan Document.

 

13.       COVENANTS SHALL RUN WITH THE LAND.  The covenants and Assignor’s obligation hereunder shall run with the land and bind Assignor, each heir, legal representative, successor and assign of Assignor and each subsequent owner, encumbrancer, tenant and subtenant of the Premises or any portion thereof, and shall inure to the benefit of, and be enforceable by, Assignee and each successor and assign of Assignee.

 

14.       NONWAIVER.  All rights and remedies of Assignee under this Assignment and the Loan Documents are cumulative, and no right or remedy shall be exclusive of any other right or remedy.  No single, partial or delayed exercise by Assignee or its agents of any right or remedy shall preclude full and timely exercise by Assignee or its agents at any time of any right or remedy of Assignee without notice or demand, at Assignee’s sole option.  No course of dealing or other conduct, no oral assignment or representation made by Assignee or its agents or usage of trade shall operate as a waiver of any right or remedy of Assignee.  No waiver of any right or remedy of Assignee hereunder shall be effective unless made specifically in writing by Assignee.  No notice or demand on an Assignor in any case shall entitle such Assignor to any other or further notice in similar or other circumstances.

 

15.       TERM; SURVIVAL.  The term of this Assignment shall continue until the Indebtedness has been fully and irrevocably paid to Assignee’s satisfaction.  Assignor’s obligation to pay the costs and expenses hereunder shall survive the term of this Assignment.  If after receipt of any payment of all or any part of the Indebtedness, Assignee is for any reason compelled to surrender such payment to any person or entity because such payment is determined to be void or voidable as a preference, impermissible set-off, or a diversion of trust funds, or for any other reason, this Assignment shall continue in full force notwithstanding any contrary action which may have been taken by Assignee in reliance upon such payment, and any such contrary action so taken shall be without prejudice to Assignee’s rights under this Assignment and shall be deemed to have been conditioned upon such payment having become final and irrevocable.

 

16.       MISCELLANEOUS.  This Assignment is absolute and unconditional.  All documents, including the Loan Documents and any other document required to be executed by an Assignor.  Debtor (defined in the Mortgage) or Guarantor (defined in the Mortgage) in connection with the transaction contemplated hereby constitute the entire assignment and understanding between the parties hereto with respect to such transaction and supersedes all prior negotiations, courses of dealing, understandings, and agreements between such parties with respect to such transaction.  This Assignment is a binding obligation enforceable against Assignor and its heirs and legal representatives and its successors and assigns and shall inure to the benefit of Assignee and its successors and assigns.  Any reference herein to “Assignee” shall be deemed to include and apply to every subsequent holder of this Assignment and any reference herein to “Assignor” shall include; (i) any successor individual or individuals, association, partnership, limited liability company or corporation to which all or substantially all of the business or assets of Assignor shall have been transferred; (ii) in the case of a partnership Assignor, any new partnership which shall have been created by reason of the admission of any new partner or partners therein, or by reason of the dissolution of the existing partnership by voluntary assignment or the death, resignation or other withdrawal of any partner; and (iii) in the case of a corporate or limited liability company Assignor, any other entity into or with which Assignor shall have been merged, consolidated, reorganized, or absorbed.  Unless the context otherwise clearly requires, references to plural includes the singular and references to the singular include the plural; the word “or” has the inclusive meaning represented by the phrase “and/or”; the word “including”, “includes” and “include” shall be deemed to be followed by the words “without limitation”; and captions or section headings are solely for convenience and not part of the substance of this Assignment.  Any representation, warranty, covenant or assignment therein shall survive execution and delivery of this Assignment and shall be deemed continuous.  Each provision of this Assignment shall be interpreted as consistent with existing law and shall be deemed amended to the extent necessary to comply with any conflicting law.  If any provision nevertheless is held invalid, the other provisions shall remain in effect.  Assignor agrees that in any legal proceeding, a photocopy of this Assignment kept in Assignee’s course of business may be admitted into evidence as an original.

 

17.      JOINT AND SEVERAL.  If there is more than one Assignor, each of them shall be jointly and severally liable for all amounts and obligations which become due or should be performed under this Assignment and the term “Assignor” shall include each as well as all of them.

 

18.       GOVERNING LAW; JURISDICTION.  This Assignment will be interpreted in accordance with the laws of the State of Connecticut excluding its conflict of laws rules.  ASSIGNOR HEREBY IRREVOCABLY CONSENTS TO THE EXCLUSIVE JURISDICTION OF ANY STATE OR FEDERAL COURT IN NEW YORK STATE IN NASSAU OR SUFFOLK COUNTY, OTHER THAN IN CONNECTION WITH ANY IN REM PROCEEDING, AND TO THE JURISDITION OF ANY STATE OR FEDERAL COURT IN THE STATE OF CONNECTICUT IN HARTFORD COUNTY WITH RESPECT TO ANY IN REM PROCEEDING, AND CONSENTS THAT ASSIGNEE MAY EFFECT ANY SERVICE OF PROCESS IN THE MANNER AND AT ASSIGNOR’S ADDRESS SET FORTH ABOVE FOR PROVIDING NOTICE OR DEMAND; PROVIDED THAT NOTHING CONTAINED IN THIS ASSIGNMENT WILL PREVENT ASSIGNEE FROM BRINGING ANY ACTION, ENFORCING ANY AWARD OR JUDGMENT OR EXERCISING ANY RIGHTS AGAINST ASSIGNOR INDIVIDUALLY, AGAINST ANY SECURITY OR AGAINST

 

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ANY PROPERTY OF ASSIGNOR WITHIN ANY OTHER COUNTY, STATE OR OTHER FOREIGN OR DOMESTIC JURISDICTION.  Assignor acknowledges and agrees that the venue provided above is the most convenient forum for both Assignee and Assignor. Assignor waives any objection to venue and any objection based on a more convenient forum in any action instituted under this Assignment.

 

19.       WAIVER OF JURY TRIAL.  ASSIGNOR AND ASSIGNEE HEREBY KNOWINGLY, VOLUNTARILY, AND INTENTIONALLY EACH WAIVE ANY RIGHT TO TRIAL BY JURY THEY MAY HAVE IN ANY ACTION OR PROCEEDING, IN LAW OR IN EQUITY, IN CONNECTION WITH THIS ASSIGNMENT OR THE TRANSACTIONS RELATED THERETO.  ASSIGNOR REPRESENTS AND WARRANTS THAT NO REPRESENTATIVE OR AGENT OF ASSIGNEE HAS REPRESENTED, EXPRESSLY OR OTHERWISE, THAT ASSIGNEE WILL NOT, IN THE EVENT OF LITIGATION, SEEK TO ENFORCE THIS RIGHT TO JURY TRIAL WAIVER.  ASSIGNOR ACKNOWLEDGES THAT ASSIGNEE HAS BEEN INDUCED TO ACCEPT THIS ASSIGNMENT BY, AMONG OTHER THINGS, THE PROVISIONS OF THIS SECTION.  ASSIGNOR ACKNOWLEDGES THAT THE TRANSACTION OF WHICH THIS ASSIGNMENT IS A PART IS A COMMERCIAL TRANSACTION, AND HEREBY VOLUNTARILY AND KNOWINGLY WAIVES ITS RIGHT TO NOTICE AND HEARING UNDER CHAPTER 903a OF THE CONNECTICUT GENERAL STATUTES, OR AS OTHERWISE ALLOWED BY THE LAW OF ANY STATE OR FEDERAL LAW, WITH RESPECT TO ANY PREJUDMENT REMEDY WHICH THE ASSIGNEE MAY DESIRE TO USE, AND SPECIFICALLY AUTHORIZES THE ATTORNEY FOR THE ASSIGNEE TO ISSUE A WRIT FOR ANY PREJUDGMENT REMEDY WITHOUT COURT ORDER.  THE UNDERSIGNED HEREBY FURTHER WAIVES ANY REQUIREMENT FOR THE POSTING OF A BOND AND ANY RIGHT TO REQUEST THE COURT TO REQUIRE THE ASSIGNEE TO POST A BOND IN CONNECTION WITH ANY PREJUDGMENT REMEDY SOUGHT.

 

20.         Upon the indefeasible payment in full of the Indebtedness, Assignee shall deliver to Assignor a termination of this General Assignment of Rents in form suitable for recording in the County in which the Premises is located.

 

[END OF PAGE]

 

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IN WITNESS WHEREOF, Assignor has executed this Assignment as of the day and year first above written.

 

 

	
WITNESSES:
    	
 
    	
FARM   SPRINGS ROAD, LLC
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
By:   GTJ REIT, INC.
    
	
Name:
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
By:
    	
 
    
	
 
    	
 
    	
 
    	
Name:
    
	
 
    	
 
    	
 
    	
Title:
    
	
 
    	
 
    	
 
    
	
Name:
    	
 
    	
 
    

 

ACKNOWLEDGMENT

 

STATE OF                          )

 

: SS.

 

COUNTY OF                      )

 

On the                 day of August, in the year 2011, before me, the undersigned, a Notary Public in and for said State, personally appeared                                                                                     , personally known to me or proved to me on the basis of satisfactory evidence to be the individual(s) whose name(s) is (are) subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their capacity(ies), and that by his/her/their signature(s) on the instrument, the individual(s), or the person upon behalf of which the individual(s) acted, executed the instrument.

 

	
 
    	
 
    
	
 
    	
Notary Public
    

 

7

 

ASSIGNMENT OF RENTS

 

FARM SPRINGS ROAD, LLC

 

To

 

MANUFACTURERS AND TRADERS TRUST COMPANY

 

Dated August 26, 2011

 

STATE OF CONNECTICUT

 

County of

 

RECORDED

 

On the

 

          day of,               , 2011 

at                 o’clock           M

In Liber                 of Mortgages at Page                              

and

examined.Exhibit 10.6

 

 

ENVIRONMENTAL COMPLIANCE AND INDEMNIFICATION AGREEMENT

 

	
Date:
    	
August 26,   2011
    
	
 
    	
 
    
	
Bank:
    	
Manufacturers   and Traders Trust Company
    
	
 
    	
One   M&T Plaza
    
	
 
    	
Buffalo,   New York 14240
    
	
 
    	
Attention:   Office of the General Counsel
    
	
 
    	
 
    
	
Mortgagor:
    	
FARM   SPRINGS ROAD, LLC
    
	
 
    	
c/o   GTJ REIT, Inc.
    
	
 
    	
444   Merrick Road, Suite 370
    
	
 
    	
Lynbrook,   New York 11563
    
	
 
    	
 
    
	
Indemnitor(s):
    	
GTJ   REIT, INC
    
	
 
    	
444   Merrick Road, Suite 370
    
	
 
    	
Lynbrook,   New York 11563
    
	
 
    	
 
    
	
Premises:
    	
8   Farm Springs Road, Farmington, Connecticut
    

 

WITNESSETH:

 

WHEREAS, Mortgagor is the owner of or is acquiring title to the Premises, as more particularly described on Schedule A;

 

WHEREAS, Mortgagor has applied to Bank for one or more loans and/or other financial accommodations (collectively, the “Loan”);

 

WHEREAS, the Loan will be evidenced by one or more notes made by the Indemnitor (collectively, the “Note”) and will be secured by a guaranty made by Mortgagor (the “Guaranty”) and a mortgage granted by Mortgagor and covering the Premises (the “Mortgage”) (together, the Note, the Guaranty and the Mortgage are referred to as the “Loan Documents”, as the same may be amended from time to time); and

 

WHEREAS, Bank is unwilling to make the Loan unless Mortgagor and Indemnitor(s) execute and deliver this Agreement.

 

NOW, THEREFORE, in order to induce the Bank to make the Loan and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, and intending to be legally bound, the Mortgagor and Indemnitor(s) hereby covenant and agree as follows:

 

1.     DEFINITIONS:  All capitalized terms used in this Agreement and not before defined shall have the meanings set forth below:

 

“Contamination” means the seeping, spilling, leaking, pumping, pouring, emitting, using, emptying, discharging, injecting, escaping, leaching, dumping, disposing, Releasing or the presence of Hazardous Substances at, under or upon the Premises or into the environment, or arising from the Premises or migrating to or from the Premises which requires notification, treatment, response or removal action or remediation under any Environmental Laws.

 

“Environment” means any water or water vapor, land surface or subsurface, air, fish, wildlife, biota and all other natural resources.

 

“Environmental Laws” means all federal, state, commonwealth, and local environmental, land use, zoning, health, chemical use, safety and sanitation laws, statutes, ordinances and codes (whether now or in the future enacted, promulgated or issued) relating to the protection of the Environment or governing the use, storage, treatment, generation, transportation, processing, handling, production or disposal of Hazardous Substances or pertaining to the protection of lawn, water, air, health, safety or the environment, and the rules, regulations, policies, guidelines, interpretations, decisions, orders and directives of federal, state, commonwealth and local governmental agencies and authorities with respect thereto, whether now or in the future enacted, promulgated or issued, including, without limitation, the laws of the state or commonwealth where the Premises is located.

 

“Environmental Permits” means all permits, licenses, approvals, authorizations, consents or registrations required by any Environmental Law in connection with the ownership, use or operation of the Premises for the storage, treatment, generation, transportation, processing, handling, production or disposal of Hazardous Substances or the sale, transfer or conveyance of the Premises.

 

“Hazardous Substance” includes, any substances, chemicals, materials or elements that are prohibited, limited or regulated by the Environmental Laws, or any other substances, chemicals, materials or elements that are defined as “hazardous” or “toxic” under the Environmental Laws, or that are known or considered to be harmful to the health or safety of occupants or users of the Premises.  The term Hazardous Substances shall also include any substance, chemical, material or element (i) defined as a “hazardous substance” under the Comprehensive Environmental Response, Compensation and Liability Act of 1980 (“CERCLA”) (42 U.S.C. §9601, et  seq.), as amended by the

 

	
CLB-158-NY (8/05)
    	
 
    	
©   Manufacturers and Traders Trust Company, 2005
    

 

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Superfund Amendments and Reauthorization Act of 1986, and as further amended from time to time, and regulations promulgated thereunder; (ii) defined as a “regulated substance” within the meaning of Subtitle I of the Resource Conservation and Recovery Act (42 U.S.C. §6991-6991i), and regulations promulgated thereunder; (iii) designated as a “hazardous substance” pursuant to Section 311 of the Clean Water Act (33 U.S.C. §1321), or listed pursuant to Section 307 of the Clean Water Act (33 U.S.C. §1317), covered by the Hazardous Materials Transportation Act, as amended (49 U.S.C. §1801, et  seq.) or the Toxic Substances Control Act, as amended (15 U.S.C. §2601, et  seq.), (iv) defined as “hazardous”, “toxic”, or otherwise regulated, under any Environmental Laws adopted by the state or commonwealth in which the Premises is located, or its agencies or political subdivisions; (v) which is petroleum, petroleum products or derivatives or constituents thereof; (vi) which is asbestos or asbestos-containing materials; (vii) the presence of which requires notification, investigation or remediation under any Environmental Laws or common law; (viii) the presence of which on the Premises causes or threatens to cause a nuisance upon the Premises or to adjacent properties or poses or threatens to pose a hazard to the health or safety of persons on or about the Premises; (ix) the presence of which on adjacent properties would constitute a trespass by the Mortgagor and/or Indemnitor; (x) which is urea formaldehyde foam insulation or urea formaldehyde foam insulation-containing materials; (xi) which is lead base paint or lead base paint-containing materials; (xii) which are polychlorinated biphenyls or polychlorinated biphenyl-containing materials; (xiii) which is radon or radon-containing or producing materials; or (xiv) which by any laws of any governmental authority requires special handling in its collection, storage, treatment, or disposal including, without limitation any flammable materials, explosives, radon, radioactive materials, polychlorinated biphenyls, petroleum and petroleum-based products or methane.

 

“Indemnitee” means the Bank, any participants in the Loan and all subsequent holders of the Mortgage, their respective successors and assigns, their respective officers, directors, employees, agents, representatives, contractors and subcontractors and any subsequent owner of the Premises who acquires title from or through the Bank.

 

“Release” has the meaning given to that term in CERCLA and the regulations promulgated thereunder.

 

2.     REPRESENTATIONS AND WARRANTIES.  Mortgagor represents and warrants to Bank that, to the best of Mortgagor’s knowledge:

 

(a)   Except as set forth on Schedule B, neither the Premises nor, to Mortgagor’s actual knowledge, any property adjacent to or within the immediate vicinity of the Premises is being or has been used for: (i) the storage, treatment, generation, transportation, processing, handling, production or disposal of any Hazardous Substance, (ii) the storage of petroleum or petroleum-based products, (iii) a landfill or other waste disposal site or (iv) military purposes.

 

(b)   Except as set forth on Schedule C, no underground storage tanks are or have been located on the Premises.

 

(c)   The soil, subsoil, bedrock, surface water and groundwater of the Premises are free of any Hazardous Substances beyond any legally permitted levels.

 

(d)   There has been no Release in violation of Environmental Laws nor is there the threat of a Release of a Hazardous Substance on, at or from the Premises or any property adjacent to or within the immediate vicinity of the Premises in violation of Environmental Laws which through soil, subsoil, bedrock, surface water or ground water migration could come to be located on the Premises, and no Contamination has been Released on or under the Premises.

 

(e)   Mortgagor has not received any notice or inquiry from (i) any federal, state or local governmental authority, (ii) any operator, tenant, subtenant, licensee or occupant of the Premises or any property adjacent to or within the immediate vicinity of the Premises, or (iii) any other person with regard to a Release or the threat of a Release of a Hazardous Substance on, at or from the Premises or any property adjacent to or within the immediate vicinity of the Premises in violation of Environmental Laws.

 

(f)    All Environmental Permits have been obtained and are in full force and effect.

 

(g)   No event has occurred with respect to the Premises which, with the passage of time or the giving of notice, or both, would constitute a violation of any applicable Environmental Law or non-compliance with any Environmental Permit.

 

(h)   There are no agreements, consent orders, decrees, judgments, license or permit conditions or other orders or directives of any federal, state or local court or governmental authority relating to the past, present or future ownership, use, operation, sale, transfer or conveyance of the Premises which require any change in the present condition of the Premises or any work, repairs, construction, containment, clean up, investigations, studies, removal or remedial action or capital expenditures with respect to the Premises.

 

(i)    There are no actions, suits, claims or proceedings, pending or threatened, which would cause the incurrence of expenses or costs of any type or description or which seek money damages, injunctive relief, remedial action or other remedy that arise out of, relate to or result from (i) a violation or alleged violation of any applicable Environmental Permit, (ii) the presence or Release or the threat of a Release of a Hazardous Substance on, at or from the Premises or any property adjacent to or within the immediate vicinity of the Premises, or (iii) human exposure to any Hazardous Substance, noises, vibrations, or nuisances of whatever kind to the extent they arise from the condition, ownership, use, operation, sale, transfer or conveyance of the Premises.

 

(j)    No Contamination is present at, on or under the Premises and no Contamination is being emitted from the Premises onto any surrounding or adjacent areas.

 

(k)   Mortgagor’s representations and warranties set forth in this Paragraph 2 are limited to the conditions and facts existing as of the date hereof.

 

3.     COVENANTS OF MORTGAGOR.  Mortgagor covenants and agrees that:

 

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(a)   Mortgagor shall keep, and shall use commercially reasonable efforts to cause all operators, tenants, subtenants, licensees and occupants of the Premises to keep, the Premises free of all Hazardous Substances in amounts in violation of Environmental Laws and shall not cause or permit the Premises or any part thereof to be used for the storage, treatment, generation, transportation, processing, handling, production or disposal of any Hazardous Substances in violation of Environmental Laws.

 

(b)   Mortgagor shall comply with, and shall cause all operators, tenants, subtenants, licensees and occupants of the Premises to comply with, all applicable Environmental Laws, and shall obtain and comply with, and shall use commercially reasonable efforts to cause all operators, tenants, subtenants, licensees and occupants of the Premises to obtain and comply with, all Environmental Permits in accordance with Environmental Laws.

 

(c)   Attached hereto as Schedule D is a complete list of all Environmental Permits presently required for the ownership, use or operation of the Premises and the businesses located thereon.  Mortgagor agrees to notify Bank of any additions, deletions, or modifications of any Environmental Permits.  Upon the written request of Bank, Mortgagor shall furnish true and complete copies of all Environmental Permits.

 

(d)   Mortgagor shall not cause or permit any change to be made in the present or intended use of the Premises which would (i) involve the use of the Premises as a landfill or other waste disposal site, for the storage of petroleum or petroleum-based products (other than as expressly identified on Schedule B), or for military purposes, (ii) violate any applicable Environmental Law, (iii) constitute non-compliance with any Environmental Permit or (iv) increase the risk of a Release of a Hazardous Substance in violation of Environmental Laws.

 

(e)   Mortgagor shall promptly provide Bank with a copy of all notifications it gives or receives with respect to any past or present Release or threat of a Release of a Hazardous Substance on, at or from the Premises or any property adjacent to or within the immediate vicinity of the Premises, or any Contamination thereof.

 

(f)    Mortgagor shall undertake and complete, in accordance with all applicable Environmental Laws and all Environmental Permits, all investigations, studies, sampling and testing and, to the extent required, all removal and other remedial actions necessary to contain, remove and clean up all Hazardous Substances that are determined to be present on or at the Premises.

 

(g)   Mortgagor shall at all times allow Bank and its officers, employees, agents, representatives, contractors and subcontractors reasonable access to the Premises upon prior notice (except in the event of an emergency condition as determined in the Bank’s sole discretion) for the purpose of ascertaining site conditions, including, but not limited to, subsurface conditions.  Bank shall use commercially reasonable efforts to avoid interfering with any of the tenants at the Premises.

 

(h)   If at any time Bank obtains any evidence or information which suggests a present or potential Contamination or Release of Hazardous Substances in violation of Environmental Laws on, at or about the Premises, Bank may require that an environmental inspection and audit report of a scope and level of detail satisfactory to Bank be prepared, at Mortgagor’s reasonable expense, by an environmental engineer or other qualified person acceptable to Bank.  Such audit may include a physical inspection of the Premises, a visual inspection of any property adjacent to or within the immediate vicinity of the Premises, personnel interviews and a review of all Environmental Permits and other compliance certificates.  If Bank requires, such inspection may also include a records search and/or subsurface testing for the presence of Hazardous Substances in the soil, subsoil, bedrock, surface water and ground water.  If the audit indicates the presence or Release or threat of a Release of any Hazardous Substance on, at or from the Premises, Mortgagor shall promptly and diligently pursue to completion all necessary and legally authorized investigative, containment, removal, clean up and remedial actions, using methods recommended by the person who prepared the environmental inspection and audit report and acceptable to the appropriate governmental agencies or authorities.

 

4.     INDEMNIFICATION.  Mortgagor and each Indemnitor hereby jointly and severally agree and covenant as follows:

 

(a)   To indemnify, protect, defend and save harmless each Indemnitee from and against any and all damages, losses, liabilities, obligations, penalties, claims, litigation, demands, judgments, suits, actions, proceedings, costs, disbursements and expenses (including, without limitation, reasonable attorneys’ and experts’ fees, expenses and disbursements) of any kind or nature whatsoever which may at any time actually be imposed upon, incurred by or asserted or awarded against any Indemnitee relating to, resulting from or arising out of (i) the use of the Premises for the storage, treatment, generation, transportation, processing, handling, production or disposal of any Hazardous Substance, as a landfill or other waste disposal site, for military purposes or for the storage of petroleum or petroleum-based products, (ii) the presence or Release or threat of a Release of any Hazardous Substance on, at or from the Premises in violation of Environmental Laws, (iii) the failure to promptly and diligently pursue to completion all necessary, appropriate and legally authorized investigative, containment, removal, clean up and other remedial actions with respect to a Release or threat of a Release of any Hazardous Substance on, at or from the Premises, (iv) human exposure to any Hazardous Substance, noises, vibrations or nuisances of whatever kind to the extent they arise from the condition of the Premises or its ownership, use, operation, sale, transfer or conveyance thereof, (v) a violation of any applicable Environmental Law, (vi) non-compliance with any Environmental Permit or (vii) a material misrepresentation or material inaccuracy in any representation or warranty or a material breach of or failure to perform any covenant made by Mortgagor in this Agreement.

 

(b)   The liability of Mortgagor and each Indemnitor shall in no way be limited, abridged, impaired or affected by (i) any amendment or modification of the Loan Documents, (ii) any extension of the time for payment or performance of other obligations required by any of the Loan Documents, (iii) the release of Mortgagor, any Indemnitor, any guarantor or any other person from the performance or observance of any of the agreements, covenants, terms or conditions contained in any of the Loan Documents or this Agreement, whether by operation of law, Bank’s voluntary act or otherwise, (iv) the invalidity or unenforceability of any of the provisions of the Loan Documents, (v) any exculpatory provision contained in any of the Loan Documents limiting Bank’s recourse to property encumbered by the Mortgage or to any other security or limiting Bank’s rights to a deficiency judgment against Mortgagor, (vi) any applicable statute of limitations, (vii) any investigation conducted by or on behalf of Bank or any other Indemnitee or any information which Bank or any other Indemnitee may have or obtain with respect to the environmental condition of the Premises, (viii) the sale, assignment or foreclosure of the Note or the Mortgage, (ix) the sale, transfer or conveyance of all or part of the Premises, (x) the dissolution, liquidation, death or legal incapacity of Mortgagor or any Indemnitor, (xi) the release or discharge, in whole or in part, of Mortgagor or any Indemnitor in any bankruptcy, insolvency, reorganization, arrangement, readjustment, composition, liquidation or

 

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similar proceeding or any security for the Note or other obligations, (xii) the accuracy or inaccuracy of the representations and warranties made by the Indemnitor, or any other obligor under any of the Loan Documents, (xiii) Bank’s failure to record the Mortgage or file any UCC financing statements (or Bank’s improper recording or filing of any thereof) or to otherwise perfect, protect, secure or insure any security interest or lien given as security for the Note or other obligations, and, in any such case, whether with or without notice to the Mortgagor or Indemnitor or other person or entity and with or without consideration, or (xiv) any other circumstances which might otherwise constitute a legal or equitable release or discharge in whole or in part, of Mortgagor under the Note or of any Indemnitor under this Agreement.

 

(c)   The indemnification provision of this paragraph 4 is wholly independent of and in addition to any indemnification agreement given to Bank as part of the application process for the Loan.

 

5.     BANK’S RIGHT TO SELECT ENGINEERS, CONSULTANTS AND ATTORNEYS.  Without limiting the other provisions hereof, in the event any claim (whether or not a judicial or administrative action is involved) is asserted against the Bank with respect to Hazardous Substances, Environmental Laws or a Release, the Bank shall have the right to select the engineers, other consultants and attorneys for the Bank’s defense or guidance, determine the appropriate legal strategy for such defense, and compromise or settle such claim, all in the Bank’s sole discretion, and the Mortgagor and each Indemnitor shall be liable to the Bank in accordance with the terms hereof for liabilities, reasonable costs and expenses actually incurred by the Bank in this regard.

 

6.     MORTGAGOR’S OBLIGATION TO DELIVER PREMISES.  Mortgagor agrees that, in the event the Mortgage is foreclosed (whether judicially or by power of sale) or the Mortgagor’s tenders a deed in lieu of foreclosure, the Mortgagor shall deliver the Premises to the Bank free of any and all Hazardous Substances, (except for (a) those Hazardous Substances which are used or present in the ordinary course of the Mortgagor’s business in compliance with all Environmental Laws and have not been Released into the environment in such a manner as to constitute Contamination hereunder, and (b) those Hazardous Substances which are naturally occurring on the Premises, but only in such naturally occurring form) or Contamination in a condition such that the Premises conforms with all Environmental Laws and such that no remedial or removal action will be required with respect to the Premises.  The Indemnitor’s obligations as set forth in this Section are strictly for the benefit of the Bank and any successors and assigns of the Bank as holder of any portion of the Loan and shall not in any way impair or affect the Bank’s right to foreclose against the Premises.

 

7.     BANK’S RIGHT TO CURE.  In addition to the other remedies provided to the Bank in the Mortgage and the other Loan Documents, should the Indemnitor fail to abide by any provisions of this Agreement, the Bank may, should it elect to do so, perform any such actions as it, in its sole discretion, deems necessary to repair and remedy any damage to the Premises caused by Hazardous Substances or Contamination.  In such event, all funds expended by the Bank in connection with the performance of any of Mortgagor’s or Indemnitor’s obligation to commence and perform any corrective work required to address any environmental damages under this Agreement or applicable Environmental Law, including all reasonable attorneys’ fees, engineering fees, consultant fees and similar charges, shall become a part of the obligation secured by the Mortgage and shall be due and payable by the Mortgagor and Indemnitor on demand.  Each disbursement made by the Bank pursuant to this provision shall bear interest at the lower of the Default Rate under the Note or the highest rate allowable under applicable laws from the date the Indemnitor shall have received written notice that the funds have been advanced by the Bank until paid in full.

 

8.     NOTICES.  Any demand or notice hereunder or under any applicable law pertaining hereto shall be in writing and duly given if delivered to Mortgagor or any Indemnitor (at their respective addresses on the Bank’s records) or to the Bank (at the address on page one and separately to the Bank officer responsible for Mortgagor’s relationship with the Bank).  Such notice or demand shall be deemed sufficiently given for all purposes when delivered (i) by personal delivery and shall be deemed effective when delivered, or (ii) by mail or courier and shall be deemed effective three (3) business days after deposit in an official depository maintained by the United States Post Office for the collection of mail or one (1) business day after delivery to a nationally recognized overnight courier service (e.g., Federal Express).  Notice by e-mail is not valid notice under this or any other agreement between Mortgagor or any Indemnitor and the Bank.

 

9.     SUCCESSORS AND ASSIGNS; SURVIVAL.  This Agreement will be binding upon the Mortgagor and each Indemnitor and its heirs, administrators, successors and assigns, and will inure to the benefit of and be enforceable by the Bank, its affiliates, the Indemnitees, any respective successors and assigns of the foregoing, as well as any persons or entities who acquire title to or ownership of the Premises from, or through action by, the Bank (including at a foreclosure, sheriff’s or judicial sale); provided, however, that the Mortgagor and Indemnitor may not assign this Agreement in whole or in part without the Bank’s prior written consent and the Bank at any time may assign this Agreement in whole or in part.  The Mortgagor’s and Indemnitor’s obligations under this Agreement shall survive any judicial foreclosure, foreclosure by power of sale, deed in lieu of foreclosure, transfer of the Premises by the Mortgagor, or the Bank and payment of the indebtedness under any of the Loan Documents in full.  Notwithstanding the foregoing, the obligations and liabilities of the undersigned under this Agreement shall not be applicable to any such obligations or liabilities occasioned, arising and caused as the result of any act of any person or party (other than an act of the undersigned or its agents) occurring subsequent to the earlier to occur of (x) the indefeasible payment in full to Bank of the entire indebtedness evidenced by or payable under the Note, the Guaranty and the other Loan Documents (unless such payment does not become indefeasible), and (y) the date upon which Bank or its nominee or affiliates acquires possession of the Premises by foreclosure of the Mortgage, a sale of the Premises pursuant to the provisions of the Mortgage, acceptance of a deed or assignment in lieu of foreclosure or sale or otherwise.

 

10.  INTERPRETATION.  In this Agreement, unless the Bank, Mortgagor and the Indemnitor otherwise agree in writing, the singular includes the plural and the plural the singular; references to statutes are to be construed as including all statutory provisions consolidating, amending or replacing the statute referred to; the word “or” shall be deemed to include “and/or”, the words “including”, “includes” and “include” shall be deemed to be followed by the words “without limitation”; and references to sections or exhibits are to those of this Agreement unless otherwise indicated.  Section headings in this Agreement are included for convenience of reference only and shall not constitute a part of this Agreement for any other purpose.

 

11.  JOINT AND SEVERAL.  If there is more than one Mortgagor or Indemnitor each of them shall be jointly and severally liable for all amounts and obligations which become due as specified in this Agreement and the term “Mortgagor” shall include each as well as all of the Mortgagors, and the term “Indemnitor” shall include each as well as all of the Indemnitors.

 

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12.  GOVERNING LAW AND JURISDICTION.  Unless provided otherwise under federal law, this Agreement will be interpreted in accordance with the laws of the State of Connecticut, excluding its conflict of laws rules.  MORTGAGOR AND INDEMNITOR HEREBY IRREVOCABLY CONSENT TO THE EXCLUSIVE JURISDICTION OF ANY STATE OR FEDERAL COURT IN NEW YORK STATE IN NASSAU OR SUFFOLK COUNTY, OTHER THAN IN CONNECTION WITH AN IN REM PROCEEDING, AND TO THE JURISDITION OF ANY STATE OR FEDERAL COURT IN THE STATE OF CONNECTICUT IN HARTFORD COUNTY WITH RESPECT TO ANY IN REM PROCEEDING, AND CONSENT THAT BANK MAY EFFECT ANY SERVICE OF PROCESS IN THE MANNER AND AT MORTGAGOR’S AND/OR INDEMNITOR’S ADDRESS AS SET FORTH ABOVE FOR PROVIDING NOTICE OR DEMAND; PROVIDED THAT NOTHING CONTAINED IN THIS AGREEMENT WILL PREVENT BANK FROM BRINGING ANY ACTION, ENFORCING ANY AWARD OR JUDGMENT OR EXERCISING ANY RIGHTS AGAINST MORTGAGOR AND/OR INDEMNITOR, INDIVIDUALLY, AGAINST ANY SECURITY OR AGAINST ANY PROPERTY OF MORTGAGOR AND/OR INDEMNITOR WITHIN ANY OTHER COUNTY, STATE OR OTHER FOREIGN OR DOMESTIC JURISDICTION.  Mortgagor and Indemnitor acknowledge and agree that the venue provided above is the most convenient forum for Bank, Mortgagor and Indemnitor.  Mortgagor and Indemnitor waive any objection to venue and any objection based on a more convenient forum in any action instituted under this Agreement.

 

13.   WAIVER OF JURY TRIAL.  MORTGAGOR, INDEMNITOR AND BANK HEREBY KNOWINGLY, VOLUNTARILY, AND INTENTIONALLY WAIVE ANY RIGHT TO TRIAL BY JURY MORTGAGOR, INDEMNITOR AND BANK MAY HAVE IN ANY ACTION OR PROCEEDING, IN LAW OR IN EQUITY, IN CONNECTION WITH THIS AGREEMENT OR THE TRANSACTIONS RELATED HERETO.  MORTGAGOR AND INDEMNITOR REPRESENTS AND WARRANTS THAT NO REPRESENTATIVE OR AGENT OF BANK HAS REPRESENTED, EXPRESSLY OR OTHERWISE, THAT BANK WILL NOT, IN THE EVENT OF LITIGATION, SEEK TO ENFORCE THIS JURY TRIAL WAIVER.  MORTGAGOR AND INDEMNITOR ACKNOWLEDGES THAT BANK HAS BEEN INDUCED TO ENTER INTO THIS AGREEMENT BY, AMONG OTHER THINGS, THE PROVISIONS OF THIS SECTION.  THE MORTGAGOR AND INDEMNITOR ACKNOWLEDGE THAT THE TRANSACTION OF WHICH THIS MORTGAGE IS A PART IS A COMMERCIAL TRANSACTION, AND EACH HEREBY VOLUNTARILY AND KNOWINGLY WAIVES ITS RIGHT TO NOTICE AND HEARING UNDER CHAPTER 903a OF THE CONNECTICUT GENERAL STATUTES, OR AS OTHERWISE ALLOWED BY THE LAW OF ANY STATE OR FEDERAL LAW, WITH RESPECT TO ANY PREJUDMENT REMEDY WHICH THE MORTGAGEE MAY DESIRE TO USE, AND SPECIFICALLY AUTHORIZES THE ATTORNEY FOR THE BANK TO ISSUE A WRIT FOR ANY PREJUDGMENT REMEDY WITHOUT COURT ORDER.  THE UNDERSIGNED EACH HEREBY FURTHER WAIVES ANY REQUIREMENT FOR THE POSTING OF A BOND AND ANY RIGHT TO REQUEST THE COURT TO REQUIRE THE BANK TO POST A BOND IN CONNECTION WITH ANY PREJUDGMENT REMEDY SOUGHT.

 

14.  COUNTERPARTS.  This Agreement may be executed in one or more counterparts, each of which shall be deemed an original and all of which shall constitute but one and the same instrument, and shall be binding upon each of the undersigned as fully and completely as if all had signed the same instrument.

 

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IN WITNESS WHEREOF, Mortgagor and Indemnitor(s) have executed this Agreement as of the day and year first above written.

 

 

	
 
    	
MORTGAGOR:
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
FARM   SPRINGS ROAD, LLC
    
	
 
    	
 
    
	
 
    	
By:   GTJ REIT, INC.
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
 
    	
Name:
    
	
 
    	
 
    	
Title:
    
	
 
    	
 
    
	
 
    	
INDEMNITOR:
    
	
 
    	
 
    
	
 
    	
GTJ   REIT, INC.
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
 
    	
Name:
    
	
 
    	
 
    	
Title:
    

 

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SCHEDULE A

 

Description of Premises

 

 

SCHEDULE B

 

Use of the Premises

 

 

SCHEDULE C

 

Underground Storage Tanks

 

 

SCHEDULE D

 

Environmental Permits

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