Document:

Exhibit 10.37

 

TERM NOTE

(LIBOR SWAP TRANSACTION)

 

	
$21,600,000.00
    	
Effective as of December 31, 2014
    

 

FOR VALUE RECEIVED, and intending to be legally bound RIVERBEND BETHLEHEM HOLDINGS I LLC (“Holdings I”) and RIVERBEND BETHLEHEM HOLDINGS II LLC (“Holdings II”), each being a limited liability company organized under the laws of the Commonwealth of Pennsylvania, and each with a mailing address at c/o Griffin Land & Nurseries, Inc., 204 West Newberry Road, Bloomfield, Connecticut 06002 (Holdings I and Holdings II being referred to individually and collectively herein as the “Borrower”), promise to pay to FIRST NIAGARA BANK, N.A., a national banking association with a banking office at P.O. Box 28, Buffalo, NY  14240-0028 (together with its successors and assigns, the “Lender”) or order, on or before January 2, 2025 (“Maturity”), the principal sum of Twenty-One Million Six Hundred Thousand and 00/100 Dollars ($21,600,000.00), together with interest thereon (the “Loan”), until paid in full.

 

1.                                      ADVANCES.                       On the date hereof, Lender has made an initial advance in the amount of $19,750,000.00 (the “Initial Advance”).  Provided no Event of Default is then occurring, the remaining $1,850,000.00 of the Loan (the “Earn-out Amount”) will be advanced to Borrower, upon its request, at such time as additional space in the Property is leased to tenants under leases approved by Lender, such that the DSCR (as defined in the Mortgage described below), taking into account the rental income from such new lease(s), is not less than 1.35 to 1.00 based on a principal Loan amount that includes the Earn-out Amount.

 

2.                                      INTEREST RATE.  Subject to the terms of this Note, the outstanding principal balance of this Note shall bear interest at a rate per annum equal to the LIBOR Rate for the Interest Period plus 1.95% (the “LIBOR-Based Rate”).

 

For purposes hereof, the following terms shall have these meanings:

 

“Business Day” shall mean any day other than a Saturday, Sunday or legal holiday on which commercial banks in New York or Connecticut are required or permitted by law to close.

 

“Interest Period” shall mean with respect to any LIBOR Advance, the one (1)-month period commencing on the first day of each month; provided, however, that (a) the first Interest Period hereunder shall commence on the later of the date hereof or the date the Initial Advance is made and run until, but not including, the first day of the following month, and (b) the first Interest Period applicable to the Earn-out Amount shall commence on the date the Earn-out Amount is advanced and run until, but not include, the first day of the following month.

 

“LIBOR Advance” shall mean any advances under this Note bearing interest based upon the LIBOR-Based Rate.

 

“LIBOR Rate” shall mean a variable interest rate per annum (rounded upwards, if necessary) determined by Lender by dividing (a) the LIBOR rate which is published on Bloomberg Screen, BBAM1 (or any successor as may replace such page in said service for the purposes of display of the interbank interest rates offered on the London market) at 11:00 a.m. London time two (2) Business Days prior to the commencement of the Interest Period; provided, however, if such rate is not available, “LIBOR Rate” shall mean either (i) the rate of interest per annum determined by Lender to be the average rate per annum at which United States dollar deposits in a similar amount are offered for such Interest Period by major banks in the London interbank deposit market at approximately 11:00 a.m. London time two (2) Business Days prior to the commencement of the Interest Period, or (ii) a similar rate based upon a comparable index chosen by Lender in its sole discretion, by (b) a number equal to 1.00 less the Reserve Requirement.

 

“Mortgage” shall mean, individually and collectively, the Mortgage and Security Agreement from Holdings I to Lender on the 4275 Property and the Mortgage and Security Agreement from Holdings II to Lender on the 4270

 

 

Property, each dated the date hereof  securing this Note, as the same may be amended from time to time.

 

“Prime Rate” shall mean the variable rate of interest announced by Lender from time to time as its prime rate for calculating interest on certain loans.  The Prime Rate may or may not be the most favorable rate charged by Lender to its customers from time to time.

 

“Property” means, individually and collectively, the property owned by Holdings I located at 4275 Fritch Drive and the property owned by Holdings II located at 4270 Fritch Drive, each in Bethlehem, Pennsylvania (referred to herein as the “4275 Property” and the “4270 Property”, respectively), which have been mortgaged to Lender as security for the Loan.

 

“Reserve Requirement” shall mean the percentage which Lender determines to be the maximum reserve requirement (including, without limitation, any emergency, marginal, special or supplemental reserve requirement) prescribed for so-called “Eurocurrency liabilities” (or any other category of eurocurrency funding) prescribed by the Board of Governors of the Federal Reserve System (or under any successor regulation which Lender determines to be applicable) with each change in such maximum reserve requirement automatically, immediately and without notice changing the LIBOR Rate thereafter applicable to each LIBOR Advance.

 

“Variable Rate” shall mean the Prime Rate plus one-half percent (0.50%) per annum.  The Variable Rate shall change simultaneously with changes to the Prime Rate.

 

“Variable Rate Advance” shall mean any advances under the Note bearing interest based upon the Variable Rate.

 

3.                                      ADDITIONAL INTEREST PROVISIONS.

 

(a)                                 Borrower shall pay interest, calculated on the basis of a 360-day year for the actual number of days of each year (365 or 366, as applicable), on the outstanding principal amount from and including the date of this Note to, but not including, the date the outstanding principal amount is paid in full.

 

(b)                                 If pursuant to the terms of this Note, Borrower is at any time obligated to pay interest on the principal balance of this Note at a rate in excess of the maximum interest rate permitted by applicable law, the applicable interest rate shall be immediately reduced to such maximum rate and all previous payments in excess of the maximum rate shall be deemed to have been payments in reduction of principal and not on account of the interest due hereunder.

 

(c)                                  After the occurrence of an Event of Default, at Lender’s option, interest shall accrue at a rate per annum equal to the aggregate of 3% plus the rate otherwise applicable (the “Default Rate”), and such rate shall continue to apply whether or not judgment shall be entered on this Note.

 

(d)                                 Upon request, Lender shall give prompt notice to Borrower of the LIBOR Rate as determined and adjusted herein, which determination shall be conclusive absent manifest error.

 

(e)                                  Except as otherwise provided, each Interest Period shall commence on the first day of each month and end on the last day of the Interest Period; provided, however, that (i) no Interest Period shall extend beyond Maturity, and (ii) each subsequent Interest Period, to the extent applicable, shall commence automatically and immediately following the end of the preceding Interest Period.

 

(f)                                   In the event that Lender shall determine that by reason of circumstances affecting the London Interbank Eurodollar market, adequate and reasonable means do not exist for determining the LIBOR Rate or dollar deposits are not available to Lender in the Interbank Eurodollar market with respect to a proposed LIBOR Advance, Lender shall give Borrower notice of such determination and (i) any requested LIBOR Advance shall be made as a Variable Rate Advance, unless Borrower gives Lender two (2) Business Days’ prior notice that its request for such borrowing is canceled; (ii) any advance which was to have been converted to a LIBOR Advance shall be continued as a Variable Rate Advance; and (iii) any outstanding LIBOR Advance shall be converted to a Variable Rate Advance on the last Business Day of the applicable Interest Period.  Thereafter, Lender shall have no obligation to make LIBOR Advances or maintain outstanding LIBOR Advances and Borrower shall not have the right to request LIBOR Advances.  Lender shall be entitled to fund and maintain its funding of all or any part of any LIBOR Advance in any manner Lender may from time to time deem advisable, Borrower hereby acknowledging that all determinations relating to LIBOR Advances shall be made as if Lender had actually funded and maintained each such LIBOR Advance by the

 

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purchase of deposits in an amount similar to the amount of that advance, with a maturity similar to the Interest Period for that advance and bearing interest at LIBOR with respect to that advance.

 

(g)                                  If Lender shall determine that any applicable law, treaty, regulation, guideline or directive, or any change therein or in the interpretation or application thereof, shall make it unlawful or impossible for Lender to make or maintain any LIBOR Advance, the obligation of Lender hereunder to make or maintain such LIBOR Advance shall terminate and Borrower shall, if any such LIBOR Advance is outstanding, promptly upon request from Lender, prepay such LIBOR Advance or convert such LIBOR Advance to a Variable Rate Advance.  If any such payment is made on a day that is not the last Business Day of the then current Interest Period, Borrower shall pay Lender, upon Lender’s request, any amount required under Section 5 hereof.

 

4.                                      REPAYMENT.  On the date hereof, if requested by Lender, Borrower shall pay to Lender interest only in advance for the month in which this Note is dated.  Borrower shall repay the outstanding principal balance of the Initial Advance in 119 consecutive monthly payments of principal in the amount set forth on Schedule A hereto plus accrued interest at the applicable interest rate, commencing February 1, 2015 and continuing on the first (1st) day of each consecutive month thereafter until Maturity, when the remaining unpaid principal and unpaid accrued interest shall be due and payable in full.  Interest shall be payable, in arrears, on the first day of each month commencing the month following the date of this Note and on the date the LIBOR Advances are paid in full.  Following its funding, interest on the Earn-out Amount will be repaid monthly commencing on the first (1st) day of the month following the month in which the Earn-out Amount is advanced and continuing on the first (1st) day of each consecutive month thereafter until Maturity.  In addition, the outstanding principal balance of the Earn-out Amount will be repaid monthly commencing on the first (1st) day of the second month following the month in which the Earn-out Amount is advanced and continuing on the first (1st) day of each consecutive month thereafter until Maturity (when the remaining unpaid principal of the Earn-out Amount and unpaid accrued interest thereon shall be due and payable in full), in an amount equal to the principal component of an amortization schedule (i) having a term equal to 300 months minus the number of full months that have elapsed between the date hereof and the date the Earn-out Amount is advanced, and (ii) an assumed fixed interest rate of       %.   Lender shall notify Borrower of the amount of said monthly principal payments within fifteen (15) days of when the Earn-out Amount is funded.  If requested by Lender, Borrower will execute and deliver an amendment of this Note confirming said payment amount.

 

5.                                      APPLICATION; BUSINESS DAY.  Borrower shall make all payments on this Note to Lender at its address stated above or at such other place as the holder of this Note may designate.  All payments shall be made absolutely net of, without deduction or offset and free and clear of taxes, deductions, charges or withholding of any kind.  Lender shall apply all payments received on this Note to any accrued and unpaid interest then due and owing, then to the reduction of principal of this Note, then to other sums due hereunder in such order and in such amounts as Lender may determine from time to time.  The sum or sums shown on Lender’s records shall be evidence of the correct unpaid balances of principal and interest on this Note, absent manifest error.  If any payment comes due on a day that is not a Business Day, as defined above, Borrower may make the payment on the first Business Day following the payment date and pay the additional interest accrued to the date of payment.

 

6.                                      PREPAYMENT.  This Note may be prepaid in whole or in part at any time without the payment of any prepayment fee.

 

7.                                      LATE FEE.  If any payment due under this Note is unpaid for five (5) Business Days or more, Borrower shall pay, in addition to any other sums due under this Note (and without limiting Lender’s other remedies on account thereof), a late charge in an amount equal to 5% of such unpaid amount.

 

8.                                      MAINTAIN OPERATING ACCOUNTS.  Borrower, or an affiliate of Borrower, shall maintain a business checking account at Lender.  Borrower shall deposit all rents and other income received from the Property monthly into said account.  Borrower shall also deposit all tenant security deposits from the Property in an account or accounts at Lender.

 

9.                                      EVENTS OF DEFAULT.  The happening of any of the following events or occurrence of the following conditions, shall be events of default hereunder (individually, an “Event of Default” and collectively “Events of Default”):

 

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(a)                                 Nonpayment.  Nonpayment when due, whether by acceleration or otherwise, of principal of, interest on, or any fee or premium provided for under, this Note.

 

(b)                                 Default under Related Documents.  The occurrence of an “Event of Default”, uncured at the end of any applicable cure period, under any loan agreement, security agreement or other document evidencing or securing this Note (individually, a “Loan Document” and collectively, the “Loan Documents”).

 

(c)                                  Death; Incompetency.  INTENTIONALLY OMITTED

 

(d)                                 Bankruptcy Proceedings.  (i) If Borrower or any guarantor hereof (each a “Loan Party”) shall (A) file a petition or request for liquidation, reorganization, arrangement, adjudication as a bankrupt or similar relief under the bankruptcy, insolvency or similar laws of the United States of America or any state or territory thereof or any foreign jurisdiction now or hereafter in effect, (B) consent to the filing of a petition in any bankruptcy, liquidation, reorganization or insolvency proceedings, (C) consent to the appointment of a receiver, trustee, agent or officer performing similar functions with respect to any substantial part of its assets, (D) make a general assignment for the benefit of its creditors, or (E) institute or execute a consent to any other type of insolvency proceedings (under the federal Bankruptcy Code or otherwise) or any formal or informal proceeding for the dissolution or liquidation of, or settlement of claims against or winding up of affairs of Loan Party; or (ii) the appointment of a receiver, custodian, trustee or officer performing similar functions for any Loan Party or for any of their respective assets, or the filing against any Loan Party of a request or petition for liquidation, reorganization, arrangement or adjudication as a bankrupt or other relief under the bankruptcy, insolvency or similar laws of the United States of America, or any state or territory thereof, or any foreign jurisdiction, now or hereafter in effect, or the institution against any Loan Party of any other type of insolvency proceedings (under the federal Bankruptcy Code or otherwise) or any formal or informal proceeding for the dissolution or liquidation of, settlement of claims against or winding up of affairs of such Loan Party, and the failure to have such appointment vacated or such petition or proceeding dismissed within 90 days after such appointment, filing or institution.

 

(e)                                  Insolvency.  If Borrower or any guarantor hereof shall (i) become “insolvent” as defined in any applicable state or federal statute; or (ii) incur debts beyond its ability to pay them as they mature.

 

(f)                                   Other Covenants.  Default in the observance of any of the covenants or agreements of Borrower set forth herein and the failure of Borrower to cure such default within thirty (30) days after notice thereof from Lender, provided that if such cure cannot reasonably be effectuated within said thirty (30) day period, Borrower shall have such additional time as is reasonably necessary to cure such default so long as Borrower has commenced such cure within said thirty (30) day period and is diligently pursuing such cure.

 

(g)                                  Representations.  If any certificate, statement, representation, warranty or financial statement furnished by or on behalf of Borrower pursuant to or in connection with this Note (including, without limitation, representations and warranties contained herein) or as an inducement to Lender or any Lender affiliate to enter into any lending agreement with Borrower shall prove to have been false in any material respect at the time as of which the facts therein set forth were certified, or to have omitted any material contingent or unliquidated liability or claim against Borrower, or if on the date of the execution of this Note there shall have been any materially adverse change in any of the facts disclosed by any such statement or certificate, which change shall not have been disclosed by Borrower to Lender at or prior to the time of such execution.

 

(h)                                 Judgments.  If any judgment or judgments (other than any judgment for which it is fully insured) against Borrower remains unpaid, unstayed on appeal, undischarged, unbonded or undismissed for a period of thirty (30) days.

 

(i)                                     Guarantor Default.  Any guaranty of this Note shall cease, for any reason, to be in effect without the prior consent of Lender, or any guarantor or Borrower shall so assert in writing; or any individual guarantor shall die or become incapacitated, incarcerated and, if requested by Lender in its sole discretion, Borrower shall have failed to agree to a replacement guaranty, cash collateral or other arrangement satisfactory to Lender as an adequate substitution for the guaranty of such guarantor; or any guarantor shall fail to perform or observe any covenant contained in the guaranty to which such guarantor is a party; or any representation, warranty or financial statement made or furnished by a guarantor

 

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in connection with this Note or the applicable guaranty shall prove to have been false in any material respect, or to have omitted any material contingent or unliquidated liability.

 

(j)                                    Challenge to Collateral Documents.  If Borrower, any guarantor, or any other Person providing collateral support for Borrower’s obligations hereunder (the “Obligor”) directly or indirectly, shall challenge, or indicate their intention to challenge, the validity and binding effect of any provision of this Note or any document evidencing or securing Borrower’s indebtedness under this Note (each a “Collateral Document” and collectively, the “Collateral Documents”) or this Note or the Collateral Documents shall for any reason (except to the extent permitted by their express terms) cease to be effective or cease to have the priority lien position required by the terms thereof or the collateral is no longer available, for any reason.

 

(k)                                 Change of Ownership.  If there is a change of control of Borrower.

 

(l)                                     Cross Default.  Nonpayment by Borrower of any other indebtedness owing by Borrower to Lender, or to any other party (if such indebtedness to such other party is in excess of $50,000.00), when due (or, if permitted by the terms of the applicable document, within any applicable grace period), whether such indebtedness shall become due by scheduled maturity, by required prepayment, by acceleration, by demand or otherwise, or failure of Borrower to perform any material term, covenant or agreement on its part to be performed under any agreement or instrument (other than this Note) evidencing or securing or relating to any indebtedness owing by Borrower to Lender, or to any other party (if such indebtedness is in excess of $50,000.00) when required to be performed if the effect of such failure is to permit the holder to accelerate the maturity of such indebtedness.

 

(m)                             Termination of Business.  Any Obligor terminates its business or ceases to operate as a going concern.

 

Upon the occurrence of any Event of Default (other than an Event of Default under paragraphs (d) or (e) above), Lender shall have the absolute right, at its option and in its sole discretion, to declare immediately due and payable all unpaid amounts of principal and interest on this Note, and all other sums payable at the time of, or as the result of, such declaration under this Note or any other document securing this Note and Borrower shall no longer be permitted to obtain loans hereunder.  Upon the happening of one or more Events of Default under paragraphs (d) or (e) hereof, Lender’s obligations hereunder shall be cancelled immediately, automatically and without notice, and all amounts outstanding under this Note, and all other sums payable at the time of, or as the result of, such declaration under this Note or any other document securing this Note, shall become immediately due and payable without presentation, demand or notice of any kind to Borrower.  Lender may, in its sole discretion, exercise alternately or cumulatively any of the remedies available under this Note or any other document securing this Note, or at law or equity.  The failure to exercise one or more of such remedies upon the happening of an Event of Default shall not constitute a waiver of the right to exercise the same at any subsequent time in respect of the same Event of Default or any other Event of Default. Neither the acceptance by Lender of any payment hereunder which is less than payment in full of all amounts due and payable at the time of such payment, or any negotiation or discussion with Borrower, shall constitute a waiver of the right to exercise one or more of such remedies at that time or at any subsequent time or nullify any prior exercise of any remedy, except as and to the extent otherwise provided by law.

 

10.                               SETOFF.  If the unpaid principal amount of this Note, interest accrued on the unpaid principal amount thereof or other amount owing by Borrower under this Note or the other loan documents shall have become due and payable (at maturity, by acceleration or otherwise), Lender will have the right, in addition to all other rights and remedies available to it, without notice to Borrower, to setoff against and to appropriate and apply to such due and payable amounts any obligations owing to, and any other funds held in any manner for the account of, Borrower by Lender or any other direct or indirect subsidiary of First Niagara Financial Group, Inc. (“FNFG”), including, without limitation, all funds in all deposit accounts (whether time or demand, general or special, provisionally credited or finally credited, or otherwise) now or in the future maintained by Borrower.  Borrower consents to and confirms the foregoing arrangements and confirms the rights of banker’s lien and setoff.  Nothing in this Note will be deemed a waiver or prohibition of or restriction on such rights of banker’s lien or setoff.

 

11.                               CHANGE OF LAW.  If the adoption of, any change in or any change in the interpretation of, any law regulation or guideline applicable to financial institutions by any applicable governmental authority exercising control over Lender or FNFG (a “Governmental Rule”), or the compliance by Lender with the Governmental Rule (including, without limitation, Regulation D of the Board of Governors of the Federal Reserve System and regulations of the

 

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Securities and Exchange Commission relating to financial instruments), imposes any reserve, deposit, allocation of capital or similar requirement, or any tax (other than taxes on Lender’s income) on Lender or FNFG which reduces the rate of return on Lender’s capital then, and in each such case, Lender may require Borrower to pay the amount necessary to compensate Lender or FNFG for such reduced rate of return.  Lender will deliver to Borrower a statement of the justification for the payment(s) and the determination by Lender shall be conclusive absent obvious error and shall be payable by Borrower to Lender upon Lender’s demand.  In determining any such amount, Lender may use reasonable averaging and attribution methods.

 

12.                               PAYMENT OF FEES AND EXPENSES.  Borrower agrees to pay, upon demand, costs of collection of all amounts due under this Note, including, without limitation, principal, interest and fees, or in connection with the enforcement of, or realization on, any security for this Note, including, without limitation, to the extent permitted by applicable law, reasonable attorneys’ fees and expenses.

 

13.                               GOVERNING LAW.  This Note shall be interpreted and the rights and liabilities of the parties shall be governed by the laws of the State of Connecticut, without regard to principles of the conflict of laws.  This Note has been delivered to and accepted by Lender and will be deemed to be made in the State of Connecticut.

 

14.                               GENERAL PROVISIONS.

 

(a)                                 Borrower waives presentment, demand, notice, protest and all other demands and notices in connection with delivery, acceptance, performance or enforcement of this Note.

 

(b)                                 This Note, together with any related loan and security agreements, guaranties, and documents ancillary thereto contains the entire agreement between Lender and Borrower with respect to the subject matter hereof, and supersedes every course of dealing, other conduct, oral agreement, commitment letter or other correspondence related thereto and representation previously made by Lender.

 

(c)                                  Borrower agrees that in any legal proceeding, a copy of this Note kept in Lender’s course of business may be admitted into evidence as an original.

 

(d)                                 This Note is a binding obligation enforceable against Borrower and its permitted successors and assigns and shall inure to the benefit of Lender and its successors and assigns.  Borrower may not assign any of its rights or obligations hereunder without the prior written consent of Lender.  If a court deems any provision of this Note invalid, the remainder of this Note shall remain in effect.

 

(e)                                  If there is more than one Borrower, each of them shall be jointly and severally liable for all amounts and obligations which become due under this Note and the term “Borrower” shall include each as well as all of them.

 

(f)                                   Borrower shall furnish to Bank the following financial information, in each instance prepared in accordance with generally accepted accounting principles consistently applied: (i) not later than one hundred twenty (120) days after the end of each fiscal year, financial information of Borrower including, without limitation, an operating statement, a cash flow statement and a balance sheet and any other information reasonably requested by Lender, prepared by Borrower’s chief financial officer or if Borrower has no such officer, the chief financial officer of Borrower’s manager; and (ii) such other information respecting the operations of Borrower and/or the Property as Lender may from time to time reasonably request.  Borrower shall promptly notify Lender of the occurrence of any default, Event of Default, adverse litigation or material adverse change in its financial condition.

 

(g)                                  If payment of this Note is secured by collateral, the collateral is specified in the collateral records of Lender.

 

(h)                                 No failure by the holder hereof to exercise, and no delay in exercising, any right or remedy hereunder shall operate as a waiver thereof, nor shall any single or partial exercise by such holder of any right or remedy hereunder preclude any other or further exercise thereof or the exercise of any other right or remedy.  The rights and remedies of the holder hereof as herein specified are cumulative and not exclusive of any other rights or remedies which such holder may otherwise have.

 

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(i)                                     All notices, demands, or other communications hereunder must be in writing and will be effective when delivered or mailed to the address set forth herein or such other address as provided by such party via overnight delivery service or personal service or, if mailed, three (3) days after deposit, postage prepaid, in an official depository maintained by the United States Post Office.

 

(j)                                    Borrower agrees to indemnify Lender and its affiliates and their respective officers, directors and employees (collectively, “Indemnitees”) and hereby holds Indemnitees harmless against all liabilities, claims, actions, suits, proceedings, penalties, costs, expenses, brokerage or other fees (including, without limitation, reasonable legal fees and expenses), losses, damages and liabilities of any kind or nature including in tort, penalties and interest, which Lender may incur in any manner other than Lender’s own negligence or willful misconduct, by reason of any matter relating, directly or indirectly, to this Note and the related Loan Documents.  This indemnity shall survive the termination of this Note.

 

(k)                                 To the fullest extent permitted by applicable law, Borrower and Lender shall not assert, and each hereby waives any claim against the other, on any theory of liability, for special, indirect, consequential or punitive damages (but excluding direct or actual damages) arising out of, in connection with or as a result of, this Note, any related loan documents, the transactions contemplated hereby or thereby or any loan or the use of the proceeds.

 

(l)                                     USA Patriot Act.  Lender hereby notifies Borrower that pursuant to the requirements of the USA Patriot Act (Title III of Pub. L. 107-56), Lender is required to obtain, verify and record information that identifies Borrower, which information includes the name and address of Borrower and other information that will allow Lender to identify Borrower in accordance with the USA Patriot Act.

 

15.                               JURISDICTION AND VENUE.  BORROWER KNOWINGLY, VOLUNTARILY, INTENTIONALLY AND IRREVOCABLY (A) CONSENTS IN EACH ACTION AND OTHER LEGAL PROCEEDING COMMENCED BY LENDER AND ARISING OUT OF OR OTHERWISE RELATING TO THIS NOTE OR ANY COLLATERAL RELATED HERETO TO THE JURISDICTION OF ANY COURT THAT IS EITHER A COURT OF RECORD OF THE STATE OF CONNECTICUT OR A COURT OF THE UNITED STATES LOCATED IN THE STATE OF CONNECTICUT, AND (B) WAIVES EACH OBJECTION TO THE LAYING OF VENUE OF ANY SUCH ACTION OR OTHER LEGAL PROCEEDING.

 

16.                               WAIVER OF JURY TRIAL.  BORROWER KNOWINGLY, VOLUNTARILY, INTENTIONALLY AND IRREVOCABLY WAIVES EACH RIGHT BORROWER MAY HAVE TO A TRIAL BY JURY WITH RESPECT TO, AND IN, ANY ACTION OR OTHER LEGAL PROCEEDING OF ANY NATURE, RELATING TO (A) THIS NOTE, ANY RELATED LOAN DOCUMENT OR ANY COLLATERAL RELATED HERETO, (B) ANY TRANSACTION CONTEMPLATED BY ANY SUCH DOCUMENTS OR (C) ANY NEGOTIATION, PERFORMANCE OR ENFORCEMENT OF THIS NOTE, OR ANY COLLATERAL RELATED HERETO.  BORROWER ACKNOWLEDGES THAT IT HAS BEEN REPRESENTED BY INDEPENDENT LEGAL COUNSEL AS NECESSARY AND APPROPRIATE.

 

17.                               PREJUDGMENT REMEDY WAIVER.  BORROWER HEREBY REPRESENTS, COVENANTS AND AGREES THAT THE PROCEEDS OF THE LOAN SHALL BE USED FOR GENERAL COMMERCIAL PURPOSES AND THAT THE LOAN IS A “COMMERCIAL TRANSACTION” AS DEFINED BY THE STATUTES OF THE STATE OF CONNECTICUT.  BORROWER HEREBY WAIVES ALL RIGHTS TO NOTICE AND PRIOR COURT HEARING OR COURT ORDER UNDER CONNECTICUT GENERAL STATUTES, SECTIONS 52-278a ET SEQ., AS AMENDED, OR UNDER ANY OTHER STATE OR FEDERAL LAW WITH RESPECT TO ANY AND ALL PREJUDGMENT REMEDIES LENDER MAY EMPLOY TO ENFORCE ITS RIGHTS AND REMEDIES HEREUNDER.  MORE SPECIFICALLY, BORROWER ACKNOWLEDGES THAT LENDER’S ATTORNEY MAY, PURSUANT TO CONNECTICUT GENERAL STATUTES, SECTION 52-278f, ISSUE A WRIT FOR A PREJUDGMENT REMEDY WITHOUT SECURING A COURT ORDER.  BORROWER ACKNOWLEDGES AND RESERVES ITS RIGHT TO NOTICE AND A HEARING SUBSEQUENT TO THE ISSUANCE OF A WRIT FOR PREJUDGMENT REMEDY BY LENDER’S ATTORNEY, AND LENDER ACKNOWLEDGES BORROWER’S RIGHT TO SAID HEARING SUBSEQUENT TO THE ISSUANCE OF SAID WRIT.  BORROWER FURTHER HEREBY WAIVES ANY REQUIREMENT OR OBLIGATION OF LENDER TO POST A BOND OR OTHER SECURITY IN CONNECTION WITH ANY PREJUDGMENT REMEDY OBTAINED BY LENDER AND WAIVES ANY

 

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OBJECTIONS TO ANY PREJUDGMENT REMEDY OBTAINED BY LENDER BASED ON ANY OFFSETS, CLAIMS, DEFENSES OR COUNTERCLAIMS OF BORROWER OR ANY OTHER OBLIGATED PARTY TO ANY ACTION BROUGHT BY LENDER.  BORROWER ACKNOWLEDGES AND AGREES THAT ALL OF THE WAIVERS CONTAINED IN THIS SECTION HAVE BEEN MADE KNOWINGLY, VOLUNTARILY, INTENTIONALLY AND INTELLIGENTLY, AND WITH THE ADVICE OF ITS COUNSEL.

 

[SIGNATURE PAGE FOLLOWS]

 

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RIVERBEND   BETHLEHEM HOLDINGS I LLC
    
	
 
    
	
 
    	
By:
    	
Riverbend   Lehigh Valley Holdings II LLC
    
	
 
    	
 
    	
Its   Sole Member
    
	
 
    	
 
    
	
 
    	
 
    	
By:
    	
Griffin   Land, LLC
    
	
 
    	
 
    	
 
    	
Its   Sole Member
    
	
 
    	
 
    
	
 
    	
 
    	
 
    	
By:
    	
Griffin   Land & Nurseries, Inc.
    
	
 
    	
 
    	
 
    	
 
    	
Its   Sole Member
    
	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
By:
    	
/s/   Michael Gamzon
    
	
 
    	
 
    	
 
    	
 
    	
Name:
    	
Michael   Gamzon
    
	
 
    	
 
    	
 
    	
 
    	
Title:
    	
President
    
	
 
    
	
 
    
	
 
    	
RIVERBEND   BETHLEHEM HOLDINGS II LLC
    
	
 
    
	
 
    	
By:
    	
Riverbend   Lehigh Valley Holdings II LLC
    
	
 
    	
 
    	
Its   Sole Member
    
	
 
    	
 
    
	
 
    	
 
    	
By:
    	
Griffin   Land, LLC
    
	
 
    	
 
    	
 
    	
Its   Sole Member
    
	
 
    	
 
    
	
 
    	
 
    	
 
    	
By:
    	
Griffin   Land & Nurseries, Inc.
    
	
 
    	
 
    	
 
    	
 
    	
Its   Sole Member
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
By:
    	
/s/   Michael Gamzon
    
	
 
    	
 
    	
 
    	
 
    	
Name:
    	
Michael   Gamzon
    
	
 
    	
 
    	
 
    	
 
    	
Title:
    	
President
    
							

 

9

 

SCHEDULE A

 

Amortization Schedule

 

10

 

Schedule A

Loan Amortization Schedule

 

	
Payment Date
    	
 
    	
Balance Prior to
   Payment
    	
 
    	
Principal
   Payment Amount
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
Feb 1, 2015
    	
 
    	
19,750,000.00
    	
 
    	
36,526.00
    
	
Mar 1, 2015
    	
 
    	
19,713,474.00
    	
 
    	
36,526.00
    
	
Apr 1, 2015
    	
 
    	
19,676,948.00
    	
 
    	
36,526.00
    
	
May 1, 2015
    	
 
    	
19,640,422.00
    	
 
    	
36,526.00
    
	
Jun 1, 2015
    	
 
    	
19,603,896.00
    	
 
    	
36,526.00
    
	
Jul 1, 2015
    	
 
    	
19,567,370.00
    	
 
    	
36,526.00
    
	
Aug 1, 2015
    	
 
    	
19,530,844.00
    	
 
    	
36,526.00
    
	
Sep 1, 2015
    	
 
    	
19,494,318.00
    	
 
    	
36,526.00
    
	
Oct 1, 2015
    	
 
    	
19,457,792.00
    	
 
    	
36,526.00
    
	
Nov 1, 2015
    	
 
    	
19,421,266.00
    	
 
    	
36,526.00
    
	
Dec 1, 2015
    	
 
    	
19,384,740.00
    	
 
    	
36,526.00
    
	
Jan 1, 2016
    	
 
    	
19,348,214.00
    	
 
    	
36,526.00
    
	
Feb 1, 2016
    	
 
    	
19,311,688.00
    	
 
    	
38,019.00
    
	
Mar 1, 2016
    	
 
    	
19,273,669.00
    	
 
    	
38,019.00
    
	
Apr 1, 2016
    	
 
    	
19,235,650.00
    	
 
    	
38,019.00
    
	
May 1, 2016
    	
 
    	
19,197,631.00
    	
 
    	
38,019.00
    
	
Jun 1, 2016
    	
 
    	
19,159,612.00
    	
 
    	
38,019.00
    
	
Jul 1, 2016
    	
 
    	
19,121,593.00
    	
 
    	
38,019.00
    
	
Aug 1, 2016
    	
 
    	
19,083,574.00
    	
 
    	
38,019.00
    
	
Sep 1, 2016
    	
 
    	
19,045,555.00
    	
 
    	
38,019.00
    
	
Oct 1, 2016
    	
 
    	
19,007,536.00
    	
 
    	
38,019.00
    
	
Nov 1, 2016
    	
 
    	
18,969,517.00
    	
 
    	
38,019.00
    
	
Dec 1, 2016
    	
 
    	
18,931,498.00
    	
 
    	
38,019.00
    
	
Jan 1, 2017
    	
 
    	
18,893,479.00
    	
 
    	
38,019.00
    
	
Feb 1, 2017
    	
 
    	
18,855,460.00
    	
 
    	
39,999.00
    
	
Mar 1, 2017
    	
 
    	
18,815,461.00
    	
 
    	
39,999.00
    
	
Apr 1, 2017
    	
 
    	
18,775,462.00
    	
 
    	
39,999.00
    
	
May 1, 2017
    	
 
    	
18,735,463.00
    	
 
    	
39,999.00
    
	
Jun 1, 2017
    	
 
    	
18,695,464.00
    	
 
    	
39,999.00
    
	
Jul 1, 2017
    	
 
    	
18,655,465.00
    	
 
    	
39,999.00
    
	
Aug 1, 2017
    	
 
    	
18,615,466.00
    	
 
    	
39,999.00
    
	
Sep 1, 2017
    	
 
    	
18,575,467.00
    	
 
    	
39,999.00
    
	
Oct 1, 2017
    	
 
    	
18,535,468.00
    	
 
    	
39,999.00
    
	
Nov 1, 2017
    	
 
    	
18,495,469.00
    	
 
    	
39,999.00
    
	
Dec 1, 2017
    	
 
    	
18,455,470.00
    	
 
    	
39,999.00
    
	
Jan 1, 2018
    	
 
    	
18,415,471.00
    	
 
    	
39,999.00
    
	
Feb 1, 2018
    	
 
    	
18,375,472.00
    	
 
    	
41,863.00
    
	
Mar 1, 2018
    	
 
    	
18,333,609.00
    	
 
    	
41,863.00
    
	
Apr 1, 2018
    	
 
    	
18,291,746.00
    	
 
    	
41,863.00
    
	
May 1, 2018
    	
 
    	
18,249,883.00
    	
 
    	
41,863.00
    
	
Jun 1, 2018
    	
 
    	
18,208,020.00
    	
 
    	
41,863.00
    
	
Jul 1, 2018
    	
 
    	
18,166,157.00
    	
 
    	
41,863.00
    
	
Aug 1, 2018
    	
 
    	
18,124,294.00
    	
 
    	
41,863.00
    
	
Sep 1, 2018
    	
 
    	
18,082,431.00
    	
 
    	
41,863.00
    
	
Oct 1, 2018
    	
 
    	
18,040,568.00
    	
 
    	
41,863.00
    
	
Nov 1, 2018
    	
 
    	
17,998,705.00
    	
 
    	
41,863.00
    
	
Dec 1, 2018
    	
 
    	
17,956,842.00
    	
 
    	
41,863.00
    
	
Jan 1, 2019
    	
 
    	
17,914,979.00
    	
 
    	
41,863.00
    
	
Feb 1, 2019
    	
 
    	
17,873,116.00
    	
 
    	
43,813.00
    
	
Mar 1, 2019
    	
 
    	
17,829,303.00
    	
 
    	
43,813.00
    
	
Apr 1, 2019
    	
 
    	
17,785,490.00
    	
 
    	
43,813.00
    
	
May 1, 2019
    	
 
    	
17,741,677.00
    	
 
    	
43,813.00
    
	
Jun 1, 2019
    	
 
    	
17,697,864.00
    	
 
    	
43,813.00
    
	
Jul 1, 2019
    	
 
    	
17,654,051.00
    	
 
    	
43,813.00
    
	
Aug 1, 2019
    	
 
    	
17,610,238.00
    	
 
    	
43,813.00
    
	
Sep 1, 2019
    	
 
    	
17,566,425.00
    	
 
    	
43,813.00
    
	
Oct 1, 2019
    	
 
    	
17,522,612.00
    	
 
    	
43,813.00
    
	
Nov 1, 2019
    	
 
    	
17,478,799.00
    	
 
    	
43,813.00
    
	
Dec 1, 2019
    	
 
    	
17,434,986.00
    	
 
    	
43,813.00
    
	
Jan 1, 2020
    	
 
    	
17,391,173.00
    	
 
    	
43,813.00
    
	
Feb 1, 2020
    	
 
    	
17,347,360.00
    	
 
    	
45,667.00
    
	
Mar 1, 2020
    	
 
    	
17,301,693.00
    	
 
    	
45,667.00
    
	
Apr 1, 2020
    	
 
    	
17,256,026.00
    	
 
    	
45,667.00
    

 

11

 

	
Payment Date
    	
 
    	
Balance Prior to
   Payment
    	
 
    	
Principal
   Payment Amount
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
May 1, 2020
    	
 
    	
17,210,359.00
    	
 
    	
45,667.00
    
	
Jun 1, 2020
    	
 
    	
17,164,692.00
    	
 
    	
45,667.00
    
	
Jul 1, 2020
    	
 
    	
17,119,025.00
    	
 
    	
45,667.00
    
	
Aug 1, 2020
    	
 
    	
17,073,358.00
    	
 
    	
45,667.00
    
	
Sep 1, 2020
    	
 
    	
17,027,691.00
    	
 
    	
45,667.00
    
	
Oct 1, 2020
    	
 
    	
16,982,024.00
    	
 
    	
45,667.00
    
	
Nov 1, 2020
    	
 
    	
16,936,357.00
    	
 
    	
45,667.00
    
	
Dec 1, 2020
    	
 
    	
16,890,690.00
    	
 
    	
45,667.00
    
	
Jan 1, 2021
    	
 
    	
16,845,023.00
    	
 
    	
45,667.00
    
	
Feb 1, 2021
    	
 
    	
16,799,356.00
    	
 
    	
47,982.00
    
	
Mar 1, 2021
    	
 
    	
16,751,374.00
    	
 
    	
47,982.00
    
	
Apr 1, 2021
    	
 
    	
16,703,392.00
    	
 
    	
47,982.00
    
	
May 1, 2021
    	
 
    	
16,655,410.00
    	
 
    	
47,982.00
    
	
Jun 1, 2021
    	
 
    	
16,607,428.00
    	
 
    	
47,982.00
    
	
Jul 1, 2021
    	
 
    	
16,559,446.00
    	
 
    	
47,982.00
    
	
Aug 1, 2021
    	
 
    	
16,511,464.00
    	
 
    	
47,982.00
    
	
Sep 1, 2021
    	
 
    	
16,463,482.00
    	
 
    	
47,982.00
    
	
Oct 1, 2021
    	
 
    	
16,415,500.00
    	
 
    	
47,982.00
    
	
Nov 1, 2021
    	
 
    	
16,367,518.00
    	
 
    	
47,982.00
    
	
Dec 1, 2021
    	
 
    	
16,319,536.00
    	
 
    	
47,982.00
    
	
Jan 1, 2022
    	
 
    	
16,271,554.00
    	
 
    	
47,982.00
    
	
Feb 1, 2022
    	
 
    	
16,223,572.00
    	
 
    	
50,217.00
    
	
Mar 1, 2022
    	
 
    	
16,173,355.00
    	
 
    	
50,217.00
    
	
Apr 1, 2022
    	
 
    	
16,123,138.00
    	
 
    	
50,217.00
    
	
May 1, 2022
    	
 
    	
16,072,921.00
    	
 
    	
50,217.00
    
	
Jun 1, 2022
    	
 
    	
16,022,704.00
    	
 
    	
50,217.00
    
	
Jul 1, 2022
    	
 
    	
15,972,487.00
    	
 
    	
50,217.00
    
	
Aug 1, 2022
    	
 
    	
15,922,270.00
    	
 
    	
50,217.00
    
	
Sep 1, 2022
    	
 
    	
15,872,053.00
    	
 
    	
50,217.00
    
	
Oct 1, 2022
    	
 
    	
15,821,836.00
    	
 
    	
50,217.00
    
	
Nov 1, 2022
    	
 
    	
15,771,619.00
    	
 
    	
50,217.00
    
	
Dec 1, 2022
    	
 
    	
15,721,402.00
    	
 
    	
50,217.00
    
	
Jan 1, 2023
    	
 
    	
15,671,185.00
    	
 
    	
50,217.00
    
	
Feb 1, 2023
    	
 
    	
15,620,968.00
    	
 
    	
52,557.00
    
	
Mar 1, 2023
    	
 
    	
15,568,411.00
    	
 
    	
52,557.00
    
	
Apr 1, 2023
    	
 
    	
15,515,854.00
    	
 
    	
52,557.00
    
	
May 1, 2023
    	
 
    	
15,463,297.00
    	
 
    	
52,557.00
    
	
Jun 1, 2023
    	
 
    	
15,410,740.00
    	
 
    	
52,557.00
    
	
Jul 1, 2023
    	
 
    	
15,358,183.00
    	
 
    	
52,557.00
    
	
Aug 1, 2023
    	
 
    	
15,305,626.00
    	
 
    	
52,557.00
    
	
Sep 1, 2023
    	
 
    	
15,253,069.00
    	
 
    	
52,557.00
    
	
Oct 1, 2023
    	
 
    	
15,200,512.00
    	
 
    	
52,557.00
    
	
Nov 1, 2023
    	
 
    	
15,147,955.00
    	
 
    	
52,557.00
    
	
Dec 1, 2023
    	
 
    	
15,095,398.00
    	
 
    	
52,557.00
    
	
Jan 1, 2024
    	
 
    	
15,042,841.00
    	
 
    	
52,557.00
    
	
Feb 1, 2024
    	
 
    	
14,990,284.00
    	
 
    	
54,844.00
    
	
Mar 1, 2024
    	
 
    	
14,935,440.00
    	
 
    	
54,844.00
    
	
Apr 1, 2024
    	
 
    	
14,880,596.00
    	
 
    	
54,844.00
    
	
May 1, 2024
    	
 
    	
14,825,752.00
    	
 
    	
54,844.00
    
	
Jun 1, 2024
    	
 
    	
14,770,908.00
    	
 
    	
54,844.00
    
	
Jul 1, 2024
    	
 
    	
14,716,064.00
    	
 
    	
54,844.00
    
	
Aug 1, 2024
    	
 
    	
14,661,220.00
    	
 
    	
54,844.00
    
	
Sep 1, 2024
    	
 
    	
14,606,376.00
    	
 
    	
54,844.00
    
	
Oct 1, 2024
    	
 
    	
14,551,532.00
    	
 
    	
54,844.00
    
	
Nov 1, 2024
    	
 
    	
14,496,688.00
    	
 
    	
54,844.00
    
	
Dec 1, 2024
    	
 
    	
14,441,844.00
    	
 
    	
54,844.00
    
	
Jan 1, 2025
    	
 
    	
14,387,000.00
    	
 
    	
14,387,000.00
    

 

12EXHIBIT
10.1

 

AGREEMENT
TO ACCEPT COLLATERAL

IN SATISFACTION OF OBLIGATIONS

 

THIS
AGREEMENT TO ACCEPT COLLATERAL IN SATISFACTION OF OBLIGATIONS (the "Agreement") is made as of February      ,
2012 by and among EcoReady Corporation, a Florida corporation, ("EcoReady") and PerfPower Corporation ("Perf Sub"
each of Eco Ready and Perf Sub a "Debtor" and collectively referred to as the "Debtors"), Alpha Capital
Anstalt, as collateral agent ("Collateral Agent"), and the parties identified on Schedule A hereto ("Secured
Creditors"), and GoGreen Power, Inc., a corporation ("GoGreen").

 

RECITALS
AND ACKNOWLEDGEMENTS

 

As
the basis for, and as further consideration for this Agreement, the parties hereto hereby acknowledge and agree as follows:

 

A.      Debtors
are indebted and obligated to Secured Creditors pursuant to secured convertible notes are identified in Schedule Al hereto in
the aggregate principal amount of $1,947,600 (the notes identified on Schedule A, the "Secured Notes").

 

B.      The
Secured Creditors are the holders of a properly perfected valid and fully enforceable security interest in all of the assets of
the Debtors including ownership of all the Assets identified on Schedule B (the "Collateral").

 

C.      Debtors
are in default of its obligations to the Secured Creditors under the Secured Notes for failure to pay principal or interest due
pursuant to the Secured Notes, among other reasons.

 

D.      Secured
Creditors have fully performed under the Secured Notes, and Debtors have no claim or cause of action against Secured Creditors
arising under the Secured Notes or as to the Collateral or for any other reason.

 

E.      Secured
Creditors have assigned all of their rights in under a portion of the Secured Notes as set forth on Schedule A2 (the "Foreclosing
Secured Notes"), the Security Interest (as defined in the Secured Notes) as related to the Foreclosing Secured Notes and
the Collateral to GoGreen, and GoGreen is now the holder of the security interests in the Collateral referenced in the Agreement.

 

F.      Debtors
acknowledge and agree that the amount of indebtedness outstanding under the Foreclosing Secured Notes exceeds the value of the
Collateral. Nevertheless, in exchange for the consensual and expedient resolution of Debtors' defaults, Debtors and Secured Creditors
have agreed that GoGreen as the secured creditor shall accept, in full and complete satisfaction of Debtors' indebtedness and
obligations Foreclosing Secured Notes, (i) the transfer of the Collateral to GoGreen as described in Section 2 below and
(ii) the agreement of Debtors to comply with the other terms, conditions and covenants set forth in this Agreement.

 

    	

    	 

    

 

NOW,
THEREFORE, in consideration of the above recitals and agreements and other good and valuable consideration, the receipt and sufficiency
of which are hereby acknowledged, the parties hereby agree as follows:

 

1.       Incorporation
of Recitals and Agreements. The introduction, recitals and agreements above, and the defined terms contained therein, are
hereby incorporated into this Agreement by this reference.

 

2.       Acceptance
of Collateral.

 

2.1
      Acknowledgements, Waivers and Representations Relating to New York Uniform Commercial Code.

 

(a)       This
Agreement constitutes Debtors' present and immediate agreement to GoGreen's acceptance of the Collateral, as provided in Section
9-620(c)(2) of the New York Uniform Commercial Code (the "NY-UCC"), and Debtors waives any right to any further
notice or any right to object as provided therein.

 

(b)       Debtors
waive any right to redeem the Collateral under Sections 9-623 and 9-624(c) of the NY-UCC.

 

(c)       Pursuant
to Section 9-622 of the NY-UCC, Debtors and GoGreen acknowledge and agree that, upon the Closing (as defined in Section 5),
GoGreen's acceptance of the Collateral (i) fully discharges the obligations of Debtors under the Foreclosing Secured Notes and
is consented to by Debtors; (ii) transfers to GoGreen all of Debtors' rights in the Collateral; (iii) discharges the security
interest in the Collateral that is the subject of the Security Agreement and any subordinate security interest or other subordinate
lien; and (iv) terminates any other subordinate interest in the Collateral.

 

(d)       Debtors
represent and warrant to Secured Creditors and GoGreen that, other than as set forth on Schedule C, during the past thirty
(30) calendar days through the date of this Agreement there has not been, there currently is not, and there will not be during
the period from the date hereof through the Closing, any Person (as defined below) other than the Secured Creditors or GoGreen
holding a security interest, lien or other interest in the Collateral, whether or not perfected. Debtors represent and warrant
to the Secured Creditors and GOGREEN that, notwithstanding anything set forth on Schedule C, GoGreen (as a result of the
assignment from the Secured Creditors to GoGreen) holds a properly perfected valid and fully enforceable security interest in
the Collateral that is first in right over any and all of the liens and other interests set forth on Schedule C. "Person"
means an individual, corporation, partnership, limited liability company, limited liability partnership, syndicate, person, trust,
association, organization or other entity, including any governmental authority, and including any successor, by merger or otherwise,
of any of the foregoing.

 

2.2
      Transfer of Collateral. Pursuant to Section 9-620 of the NY-UCC, GoGreen
and Debtors agree that GoGreen hereby accepts at the Closing the Collateral in full and complete
satisfaction of Debtors' indebtedness and obligations to GoGreen under the Foreclosing Secured Notes.

  

    	2

    	 

    

 

3.       Covenants
of Debtors.

 

3.1
      Non-Solicitation; Reasonableness; Referral.

 

(a)       Non-Solicitation.
For a period of five (5) years after the Closing Date, Debtors shall not, and shall cause its affiliates, directors, officers,
employees and agents not to, either directly or indirectly, as a stockholder, investor, partner, director, officer, employee,
consultant or otherwise, solicit business from any Person (as defined in Section 2.1(d)) that is an existing customer,
or was a customer within the prior three (3) years, of Debtors or any of their affiliates (the "Customers").
For purposes of this Section 3.1(a), the "Territory" shall mean the United States and any other place
where Debtors have previously conducted its business.

 

(b)       Reasonableness.
Debtors acknowledges that the duration and geographic scope of the non-solicitation provisions set forth in Section
3.1(a) are reasonable. In the event that any court determines that the duration or the geographic scope, or both, are
unreasonable and that such provision is to that extent unenforceable, the provision shall remain in full force and effect for
the greatest time period and in the greatest area that would not render it unenforceable. Debtors and GOGREEN intend that
this non-solicitation provision will be deemed to be a series of separate covenants, one for each and every county in the
Territory.

 

(c)       Referral.
For a period of five (5) years after the Closing Date, Debtors shall, and shall cause its affiliates, directors, officers, employees
and agents to, refer all business inquiries from the Customers (as defined in Section 3.1(a)) to GoGreen or such Person
(as defined in Section 2.1(d)) as GoGreen may designate in writing to Debtors from time to time. Debtors and their affiliates
shall not independently pursue any such inquiries without the prior written consent of GoGreen.

 

3.2
      Maintenance of Collateral. Between the signing hereof through the Closing, Debtors
(a) shall not transfer any of the Collateral to any Person (as defined in Section 2.1(d)) without the prior written consent
of the Secured Lenders and (b) shall use best commercial efforts to preserve in tact the Collateral and to preserve the value
thereof.

 

3.3
      Legal Requirements. Debtors shall take all actions necessary to comply promptly with
all legal requirements which may be imposed on Debtors with respect to the consummation of the transfers contemplated by this
Agreement and will promptly cooperate with and furnish information to such other party or parties in connection with any such
requirements as may be imposed upon such other party or parties in connection with the consummation of the transfers contemplated
by this Agreement. Debtors shall take all necessary actions to obtain (and to cooperate with such other party or parties) any
consent, authorization, order or approval of, or any exemption by, any governmental or regulatory authority, or other third party,
required to be obtained or made by such party or parties in connection with this Agreement.

 

    	3

    	 

    

 

3.4
      Proprietary Information. From and after the Closing Date, Debtors shall hold in confidence,
and shall cause its affiliates, directors, officers, employees and agents to hold in confidence, all knowledge, information and
documents of a confidential nature or not generally known to the public with respect to the Collateral (including, but not limited
to, customer lists, financial information, intellectual property rights, technical information or data).

 

4.       No
Liabilities Assumed. Notwithstanding anything contained herein, the Secured Creditors and GoGreen shall not assume or become
responsible for, and Debtors shall retain and remain solely liable for and obligated to discharge and indemnify and hold the Secured
Creditors and GoGreen harmless for, any and all liabilities, indebtedness, guarantees or obligations of any kind, character or
description (whether known or unknown, whether absolute or contingent, whether disputed or undisputed, whether liquidated or unliquidated,
whether accrued or unaccrued, whether secured or unsecured, whether joint or several, whether due or to become due, whether vested
or unvested, and whether claims with respect thereto are asserted before or after the Closing) of Debtors (collectively, the "Debtors
Liabilities"), including without limitation the following:

 

(a)       all
liabilities related to or arising in connection with the activities of Debtors or their business or otherwise;

 

(b)       all
liabilities and obligations of Debtors under this Agreement and instruments of conveyance contemplated by this Agreement;

 

(c)       all
federal, state and local taxes, and any charges, penalties, interest, fees, imposts, duties or other assessments with respect
thereto ("Tax" or collectively "Taxes") arising out of the operation of Debtors' business or
relating to the Collateral, including income, gross receipts, excise, employment, sales, use, transfer, license, payroll, franchise,
severance, stamp, occupation, environmental, customs, duties, tariffs, ad valorem, value added or other fees or taxes, and also
including all liabilities and obligations for Taxes arising in connection with the completion of the transfers contemplated by
this Agreement;

 

(d)       all
liabilities and obligations under any agreement, contract, lease or license to which any Debtor is a party;

 

(e)       all
liabilities ascribed to the Secured Creditors or GoGreen by operation of successor liability provisions of applicable laws;

 

(f)       all
liabilities and obligations pursuant to any law, rule or regulation, any judgment, decree or order of any governmental entity,
or any permit;

 

(g)       all
liabilities arising out of any claim, suit, action, arbitration, proceeding, investigation or other similar matter, whether based
on negligence, gross negligence, intentional misconduct, fraud, breach of warranty, breach of contract, strict liability, enterprise
liability or otherwise, (whether now pending or hereafter initiated);

 

(h)       all
liabilities to or in respect of any former or existing security holder, officer, director, employee, consultant, contractor, customer,
supplier, joint venturer, partner or agent, whether under any plan, policy, agreement (written, oral, express or implied), arrangement,
instrument, law, rule, regulation, order, charter provision or otherwise, including but not limited to any salaries, accrued vacation
time, personal time and sick leave payable, bonuses and employee severance obligations; and

 

(i)       any
liability under any environmental law.

 

5.       The
Closing.

 

5.1
      Time; Place; Location. The closing of the transfers contemplated by this Agreement
(the "Closing") shall take place at the offices of Grushko & Mittman, P.C., 515 Rockaway Avenue, Valley Stream,
NY 11581 at 10:00 a.m. local time on the date hereof; provided that the transfers contemplated by this Agreement may be
reversed in the sole discretion of the Secured Lenders following the Closing in the event that, in the sole judgment of the Secured
Lenders, one or more of the conditions subsequent set forth in Section 6 has occurred; provided, further,
that, in the event the Secured Lenders so elect to reverse the transfers contemplated by this Agreement, this Agreement shall
be deemed to have been terminated pursuant to Section 9 and the Closing shall be deemed never to have occurred. The date
on which the Closing occurs shall be referred to herein as the "Closing Date."

 

5.2
      Transfer to GoGreen. At the Closing, Debtors hereby transfer, or agree to cause to
be transferred, to GoGreen all of the Collateral (and all of their right, title and interest thereto). Without limiting the foregoing,
Debtors shall cause all tangible Collateral to be delivered, at the expense of Debtors, to such place or places and in such manner
as shall be designated by the Secured Lenders or GoGreen in their complete discretion at or subsequent to the Closing.

 

6.       Conditions
Subsequent.

 

6.1
      Conditions Subsequent to Obligations of Secured Creditors and GoGreen. The transfers
contemplated by this Agreement may be reversed by the Secured Lenders in accordance with Section 5.1 within the ninety
(90) calendar days following the Closing Date in the event that, in the sole judgment of the Secured Lenders, one or more of the
following conditions subsequent has occurred following the Closing:

 

(a)       Debtors
have not performed and complied with all obligations, covenants and conditions herein required to be performed or complied with
by Debtors.

 

    	4

    	 

    

 

(b)       Debtors
have not obtained all authorizations, consents, orders and approvals of all governmental entities and officials and all third
party consents that are necessary or desirable for the consummation of the transfers contemplated by this Agreement.

 

(c)       The
Secured Lenders are not satisfied, in its sole and complete discretion, that the Closing is advisable to Secured Creditors and
GoGreen.

 

(d)       The
an involuntary bankruptcy petition if filed against any Debtor.

 

(e)       The
requirements relating to consent of the Internal Revenue Service and notice of a non-judicial sale of property pursuant to Section
7425(c) of the Internal Revenue Code of 1986, as amended, and Internal Revenue Service Publication 786 have not been satisfied,
in the sole determination of the Secured Lenders.

 

(f)       Secured
Creditors and GoGreen are not satisfied in their absolute discretion that all applicable notices to be provided by Secured Creditors
or GoGreen under the NY-UCC and other applicable law have been provided.

 

6.2
     No Conditions to Obligations of Debtors. The obligations of Debtors to complete the transfers
contemplated by this Agreement are not subject to any conditions of any kind.

 

7.     Further
Assurances. At any time and from time to time after the Closing Date, at the request of the Secured Lenders or GoGreen, Debtors
shall execute and deliver such other instruments of transfer, conveyance or assignment and take such action as the Secured Lenders
or GoGreen may reasonably request in order to transfer, convey and assign to GoGreen and to confirm GoGreen's rights to, title
in and ownership of the Collateral and to place GoGreen in actual possession and operating control thereof.

 

8.     Indemnification
for Benefit of Secured Creditors and GoGreen. Debtors shall indemnify, and shall cause its affiliates to jointly and severally
indemnify, the Secured Creditors and GoGreen and their affiliates in respect of, and hold the Secured Creditors and GoGreen and
their affiliates harmless against, any and all debts, obligations and other liabilities (whether absolute, accrued, contingent,
fixed or otherwise, or whether known or unknown, or due or to become due or otherwise), monetary damages, fines, fees, penalties,
interest obligations, deficiencies, diminutions in value of assets, losses and expenses (including amounts paid in settlement,
court costs, costs of investigators, reasonable fees and expenses of attorneys, accountants, financial advisors and other experts,
and other expenses of litigation) ("Damages") incurred or suffered by the Secured Creditors, GoGreen or any of
their affiliates resulting from, relating to, constituting or arising out of this Agreement, including without limitation (a)
any failure of Debtors to GoGreenorm any covenant or agreement of Debtors contained in this Agreement, (b) any breach of any representation
or warranty of Debtors contained in this Agreement and (c) the Debtors Liabilities.

 

9.     Termination.
This Agreement may be terminated only by the Secured Lenders in accordance with Sections 5.1 and 6.l, without any
liability of any kind on the part of the Secured Creditors or GoGreen to Debtors or any other Person (as defined in Section
2.1(d)). In the event of the termination of this Agreement pursuant to the foregoing sentence, the obligations of the parties
to complete the transactions contemplated by this Agreement shall expire and none of the parties shall have any further obligations
under this Agreement, except as provided in Sections 8 and 11.6. For the avoidance of doubt and without limiting
the foregoing, should this Agreement be terminated by the Secured Lenders, Section 2.1(c), Section 2.2 and any other
provision of this Agreement purporting to discharge any obligation of Debtors shall be void and of no force or effect whatsoever.
Debtors may not terminate this Agreement for any reason.

 

10.   Collateral
Agent Consent, Covenants and Waiver. Upon the signatures of the Secured Creditors holding a majority of the "Obligations"
as defined in the Security Agreement (the "Security Agreements
Obligations") the Collateral Agent is instructed to sign this Agreement and thereby (i) consents to the disposition of the
Collateral contemplated by this Agreement, including without limitation for purposes of Section 10 of the Credit Agreement and
hereby waives any notice requirements in connection therewith under the Security Agreement; (ii) hereby transfers its rights pursuant
to the Security Agreement to Secured Creditors to the extent necessary to effect the transfers contemplated by this Agreement;
(iii) consents to the transfer to GoGreen described in paragraph 6 of the Recitals and Acknowledgements of this Agreement; and
(iv) covenants to take all other commercially reasonable actions necessary to effect the transfers contemplated by this Agreement.
The Secured Creditors hereby instruct Collateral Agent to enter into this Agreement and all other agreements deemed necessary
by the Secured Lenders to effect the transfers contemplated by this Agreement.

 

    	5

    	 

    

 

11.   Miscellaneous.

 

11.1
    This Agreement and the other documents referred to herein contain the entire agreement among the parties
with respect to the subject matter hereof, and no representation, undertaking, promise or condition concerning the subject matter
hereof shall be binding upon the parties unless clearly expressed in this Agreement. No statement or writing subsequent to the
date hereof which purports to modify or add to the terms or conditions hereof shall be binding unless contained in a writing which
makes specific reference to this Agreement and which is signed by the parties hereto to be charged with the terms thereof.

 

11.2
    No course of dealing among the parties hereto or failure or delay on the part of the Secured Creditors
or GoGreen in exercising any rights or remedies hereunder shall operate as a waiver of any rights or remedies of the Secured Creditors
or GoGreen under this Agreement or any other agreement. No single or partial exercise of any rights or remedies hereunder by the
Secured Creditors or GoGreen shall operate as a waiver or shall preclude the exercise of any other rights or remedies of the Secured
Creditors or GoGreen hereunder.

 

11.3
    Neither this Agreement nor any of the rights, interests or obligations hereunder may be assigned by Debtors
without the prior written consent of the Secured Lenders or GoGreen. A change in control any Debtor or a transfer of all or substantially
all of a Debtor's assets shall constitute an assignment for such purposes. The Secured Creditors and GoGreen may assign this Agreement
at any time with the consent of the Secured Lenders.

 

11.4
    The provisions of this Agreement shall inure to the benefit of and be binding upon the parties and their
respective permitted successors and assigns. This Agreement is solely for the benefit of the parties hereto and their permitted
successors and assigns. No other Person (as defined in Section 2.1(d)) shall have any rights, benefits or remedies under
or because of the existence of this Agreement.

 

11.5
   The acknowledgements, agreements, representations and warranties of Debtors contained in this Agreement shall
survive the expiration or other termination of this Agreement.

 

    	6

    	 

    

 

11.6
     If any term or provision of this Agreement or the application thereof to any party or circumstance
shall be held to be invalid, illegal or unenforceable in any respect by a court of competent jurisdiction, the validity, legality
and enforceability of the remaining terms and provisions of this Agreement shall not in any way be affected or impaired thereby,
and the affected term or provision shall be modified to the minimum extent permitted by law so as to achieve most fully the intention
of this Agreement.

 

11.7
    This Agreement is governed by and is to be construed and enforced as though made and to be fully GoGreenormed
in the State of New York, without regard to the conflicts of law rules. Any and all disputes are to be resolved in the courts
of the state of New York located in New York County.

 

11.8
    Debtors acknowledge and agree that irreparable damage would occur in the event that any of its obligations
hereunder are not performed or satisfied in accordance with the specific terms applicable thereto. Accordingly, it is agreed that
the Secured Creditors or GoGreen shall be entitled to seek an injunction or injunctions to prevent breaches of this Agreement
and to enforce specifically the terms and provisions of this Agreement in any state or federal court, in addition to any other
remedy to which they are entitled at law or in equity.

 

11.9
    This Agreement is executed by Debtors voluntarily and not pursuant to any duress. Furthermore, it is executed
in mutual good faith among the parties and is not given or intended to hinder, delay, or defraud any creditor, or to contravene
any of the bankruptcy laws of the United States, laws governing fraudulent conveyances or any other applicable laws. Debtors represents
that all of the transfers made and all of the obligations incurred pursuant to this Agreement are for fair consideration and for
reasonably equivalent value with respect to valid, existing, secured indebtedness due to GoGreen, as the assignee of the Secured
Creditors.

 

11.10
  The parties agree to sign, deliver and file any and all additional documents and to take any and all other actions
that may reasonably be required or appropriate for a full and complete consummation of the transactions and matters covered by
this Agreement.

 

11.11
  THE PARTIES HEREBY WAIVE ANY RIGHT TO TRIAL BY JURY IN ANY PROCEEDINGS INITIATED PURSUANT TO EITHER THIS AGREEMENT
OR ANY DOCUMENT OR AGREEMENT REFERRED TO HEREIN.

 

11.12
  This Agreement may be signed in any number of counterparts with the same effect as if the signatures thereto and hereto
were upon the same instrument. Facsimile copies of signatures shall be binding as original signatures.

 

[Signature
Page Follows]

 

    	7

    	 

    

 

IN
WITNESS WHEREOF, the Debtors, Collateral Agent and GoGreen have caused this Agreement to be executed in their respective names
and by their duly authorized officers, as of the date first written above.

 

"DEBTORS"

 

	EcoReady Coporation	 	PerfPower Corporation
	 	 	 
	/s/
    Boris Rubizhevsky	 	/s/
    Boris Rubizhevsky
	By:	Boris Rubizhevsky	 	By:	Boris Rubizhevsky
	Its:	CEO	 	Its:	CEO

 

"COLLATERAL
AGENT"

Pursuant
to the instructions of Secured Creditors

holding
a majority of the Security Agreements Obligations

 

	/s/ Konrad Ackermann 	 	 
	ALPHA
    CAPITAL ANSTALT	 	 

 

"GOGREEN"

 

GoGreen
Power, Inc.

 

	/s/ Mark Shefts 	 	 
	Name: Mark Shefts	 	 
	Title: CEO	 	 

 

[secured
creditors signature page to follow]

 

    	8

    	 

    

 

"SECURED
CREDITORS"

IN
WITNESS WHEREOF, the Secured Creditors have caused this Agreement to be executed in their respective names and by their duly authorized
officers, as of the date first written above.

 

	ALPHA
    CAPITAL ANSTALT	 	WHALEHAVEN
    CAPITAL FUND LTD
	 	 	 
	/s/ Korad Ackerman 	 	/s/ Vadim Mats 
	Name:
    Korad Ackerman	 	Name:
    Vadim Mats
	Title:
    Director	 	Title:
    CFO
	 	 	 
	CHESTNUT
    RIDGE PARTNERS LP	 	MULKEY
    II LIMITED PARTNERSHIP
	 	 	 
	/s/ Kenneth Holz 	 	/s/
    David A Mulkey
	Name:
    Kenneth Holz	 	Name:
     David A Mulkey
	Title:
    CFO	 	Title: General
    Partner
	 	 	 
	RICHARD
    G. DAVID	 	BARBARA
    STONE (Irrevocable Trust)
	/s/
    RICHARD G. DAVID	 	/s/
    Barbara Stone
	 	 	 
	PHILIP
    W. DAVID	 	JAYAKUMAR
    & PURNIMA PATIL
	/s/
    PHILIP W. DAVID	 	/s/
    Jayakumar & Purnima Patil
	 	 	 
	AUSTIN
    GLEASON	 	DONALD
    SMITH
	/s/
    AUSTIN GLEASON	 	/s/
    DONALD SMITH
	 	 	 
	NEUROLOGICAL
    SURGERY ASSOCIATES	 	NUNLEY
    INVESTMENTS, LLC
	 	 	 
	/s/ James Adametz 	 	/s/
                                         Pierce D Wenley

	Name: James Adametz	 	Name:
    Pierce D Wenley
	Title: 	 	Title:
     Manager
	 	 	 
	J.
    TRUMAN BIDWELL, JR.	 	LEONARD
    SCHILLER
	/s/
    J. Truman Bidwell, Jr.	 	/s/
    Leonard Schiller
	 	 	 
	MARTA
    BERKOWICZ	 	ROSAMOND
    JANIS
	/s/
    Marta Berkowicz	 	/s/
    Rosamond Janis
	 	 	 
	RISING
    STAR INVESTMENTS, LLC	 	 
	 	 	 
	/s/
    Eubulus J. Kerr	 	 
	Name:
    Eubulus J. Kerr	 	 
	Title:
    Member	 	 

 

    	9

    	 

    

 

SCHEDULE
Al

 

	SECURED CREDITOR	 	NOTE PRINCIPAL	 	 	ISSUE DATE	 
	Alpha Capital Anstalt ("Alpha")	 	$	219,600.00	 	 			 
	Whalehaven Capital Fund, Ltd. ("Whalehaven")	 	$	215,600.00	 	 	 	 	 
	Chestnut Ridge Partners LP ("Chestnut")	 	$	199,600.00	 	 	 	 	 
	Mulkey II Limited Partnership	 	$	150,000.00	 	 	 	 	 
	Richard G. David	 	$	75,000.00	 	 	 	 	 
	J. Truman Bidwell Jr.	 	$	25,000.00	 	 	 	 	 
	Leonard Schiller	 	$	25,000.00	 	 	 	 	 
	Martha Berkowicz	 	$	25,000.00	 	 	 	 	 
	Neurological Surgery Associates	 	$	30,000.00	 	 	 	 	 
	Nunley Investments, LLC	 	$	30,000.00	 	 	 	 	 
	Philip W. David	 	$	50,000.00	 	 	 	 	 
	Rising Star Investments, LLC	 	$	30,000.00	 	 	 	 	 
	Austin Gleason	 	$	30,000.00	 	 	 	 	 
	Barbara Stone (Irrevocable Trust)	 	$	50,000.00	 	 	 	 	 
	Donald Smith	 	$	30,000.00	 	 	 	 	 
	Jayakumar & Purnima Patil	 	$	35,000.00	 	 	 	 	 
	Rosamond Janis	 	$	15,000.00	 	 	 	 	 
	Alpha	 	$	219,600.00	 	 	 	 	 
	Chestnut	 	$	215,600.00	 	 	 	 	 
	Whalehaven	 	$	199,600.00	 	 	 	 	 
	Alpha	 	$	20,000.00	 	 	 	 	 
	Whalehaven	 	$	20,000.00	 	 	 	 	 
	Alpha	 	$	14,000.00	 	 	 	 	 
	Chestnut	 	$	12,000.00	 	 	 	 	 
	Whalehaven	 	$	12,000.00	 	 	 	 	 
	TOTAL	 	$	1,947,600.00

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